SHANGHAI, March 22, 2019 /PRNewswire/ -- JinkoSolar Holding
Co., Ltd. ("JinkoSolar" or the "Company") (NYSE: JKS), a global
leader in the solar PV industry, today announced its unaudited
financial results for the fourth quarter and full year ended
December 31, 2018.
Fourth Quarter 2018 Highlights
- Total solar module shipments were 3,618 megawatts ("MW"), an
increase of 22.5% from 2,953 MW in the third quarter of 2018 and an
increase of 45.8% from 2,481 MW in the fourth quarter of 2017.
- Total revenues were RMB7.72
billion (US$1.12 billion), an
increase of 15.3% from the third quarter of 2018 and an increase of
21.5% from the fourth quarter of 2017.
- Gross margin was 14.7%, compared with 14.9% in the third
quarter of 2018, and 11.6% in the fourth quarter of 2017.
- Income from operations was RMB237.4
million (US$34.5 million),
compared with RMB188.0 million in the
third quarter of 2018 and RMB91.3
million in the fourth quarter of 2017.
- Net income attributable to the Company's ordinary shareholders
was RMB114.8 million (US$16.7 million) in the fourth quarter of 2018,
compared with RMB189.1 million in the
third quarter of 2018 and RMB22.5
million in the fourth quarter of 2017.
- Diluted earnings per American depositary share ("ADS") were
RMB2.92 (US$0.44) in the fourth quarter of 2018.
- Non-GAAP net income attributable to the Company's ordinary
shareholders in the fourth quarter of 2018 was RMB111.8 million (US$16.3
million), compared with RMB206.3
million in the third quarter of 2018 and RMB41.5 million in the fourth quarter of
2017.
- Non-GAAP basic and diluted earnings per ADS were both
RMB2.84 (US$0.40) in the fourth quarter of 2018, compared
with RMB5.28 and RMB5.28 in the third quarter of 2018 and
RMB1.28 and RMB1.24 in the fourth quarter of 2017,
respectively.
Full Year 2018 Highlights
- Total solar module shipments were 11.4 GW (including 209 MW to
be used in the Company's overseas downstream solar projects), an
increase of 16.0% from 9.8 GW for the full year 2017.
- Total revenues for the full year 2018 were RMB25.04 billion (US$3.64
billion), a decrease of 5.4% from RMB26.47 billion for the full year 2017.
- Gross margin was 14.0% for the full year 2018, compared with
11.3% for the full year 2017.
- Income from operations was RMB644.9
million (US$93.8 million),
compared with RMB325.3 million for
the full year 2017.
- Net income attribute to the Company's ordinary shareholders was
RMB406.5 million (US$59.1 million) for the full year 2018, compared
with RMB141.7 million for the full
year 2017.
- Diluted earnings per ADS for the full year 2018 were
RMB10.52 (US$1.52), compared with RMB4.32 for the full year 2017.
- Non-GAAP net income attributable to the Company's ordinary
shareholders for the full year 2018 was RMB435.8 million (US$63.4
million), compared with RMB209.0
million for the full year 2017.
- Non-GAAP basic and diluted earnings per ADS for the full year
2018 were RMB11.32 (US$1.64) and RMB11.28 (US$1.64),
compared with RMB6.48 and
RMB6.36 for the full year 2017,
respectively.
Mr. Kangping Chen, JinkoSolar's
Chief Executive Officer commented, "We closed out the year strongly
with module shipments hitting another record high of 3,618 MW
during the quarter, an increase of 22.5% sequentially and an
increase of 45.8% year-over-year. We shipped a total of 11.4 GW of
solar modules in 2018, an increase of 16.0% from 2017. Total
revenues during the quarter were US$1.12
billion, an increase of 15.3% sequentially and an increase
of 21.5% year-over-year. Total revenues for the full year 2018 were
US$3.64 billion, a decrease of 5.4%
from 2017, primarily due to lower ASPs. Gross margin was 14.0% for
the full year 2018, compared with 11.3% for 2017. Excluding the
impact of countervailing duties, gross margin expanded during the
quarter to 13.8% from 12.8% last quarter. While the Chinese market
was impacted by the policies released on May
31st, we were able to continue growing through our
diversified global distribution network and further consolidate our
leading position in terms of market share. With global demand
recovering strongly, we remain confident in the future prospects of
our business and expect module shipments to grow by
approximately 30% in 2019."
"China's National Energy
Administration recently laid out plans for a bidding system and is
expected to again begin granting subsidy approvals for
utility-scale projects. Most importantly, subsidies will be prepaid
by the state grid, which means there will be no more delays in
payment for new projects. The new policies set a clear
direction for the country's solar plans and will help to
greatly improve sentiment for the solar sector as the country tries
to smoothly transition towards grid parity and encourage a more
market-driven environment. Based on the new policies, we believe
domestic installations in 2019 will exceed last year. Distributed
generation projects and projects completed at grid parity will
continue to make up a larger portion of overall installations."
"US demand continues to strengthen thanks to the introduction of
the solar Investment Tax Credit (ITC) which is expected to generate
robust growth during the second half of 2019. Our U.S.
manufacturing facility began pilot production in November 2018 and has been steadily ramping up,
with full production capacity expected to begin during the
second quarter of 2019. With such enormous growth potential,
we will continue to expand our presence in the US by leveraging our
strong brand recognition, high quality products, and best-in-class
customer service. Following the cancellation of the minimum import
price policy, demand from solar power purchase agreements and
grid-parity projects in the European markets is surging, especially
in some of the biggest markets such as Spain, the
Netherlands and Germany.
Emerging markets are also booming with Jordan, Kuwait, South
Africa, and Oman growing
rapidly. We are also benefiting from our early entry into Southeast
Asian markets such as Malaysia,
Thailand and the Philippines where demand remained robust
throughout 2018."
"We continue to make progress implementing large-scale
crystallization furnaces to increase productivity while working to
develop technologies to reduce both oxygen content and light
induced degradation. We are also leading the industry in
terms of efficiency improvements on our diamond wire
cutting, which is continuously reducing our wire consumption. Our
large-area N-type monocrystalline silicon solar cell reached record
high efficiency of 24.2% in January
2019. We are rapidly increasing our capacity to produce
high-efficiency products by increasing both mono wafer
capacity and PERC cell capacity and converting our
existing non-PERC capacity to PERC capacity to increase output.
With our production gradually ramping up into the middle of 2019,
our expanded capacity will improve the competitiveness of our
products and strengthen our cost advantages. This and other
constant technological developments not only enable us to provide
our clients with competitive high-efficiency products, but also
allow us to sustainably cut costs. We are confident in our ability
to further optimize our cost structure going forward and are fully
prepared to enter an era of grid parity in the near future."
"Looking out to 2019, we believe Chinese and global demand will
grow as solar energy becomes more and more competitive. We are
excited about the opportunities that lie ahead, and are confident
in our ability to further expand our market share, distinguish
ourselves from our competitors, and continue leading the industry
forward."
Fourth Quarter 2018 Financial Results
Total Revenues
Total revenues in the fourth quarter of 2018 were RMB7.72 billion (US$1.12 billion), an increase of 15.3% from
RMB6.69 billion in the third quarter
of 2018 and an increase of 21.5% from RMB6.35 billion in the fourth quarter of 2017.
The sequential increase was mainly attributable to an increase in
the shipment of solar modules in the fourth quarter of 2018.
The year-over-year increase was mainly attributable to an increase
in the shipment of solar modules, which was partially offset by a
decline in the average selling price of solar modules in the
fourth quarter of 2018.
Gross Profit and Gross Margin
Gross profit in the fourth quarter of 2018 was RMB1.13 billion (US$164.7 million), compared with
RMB997.6 million in the third quarter
of 2018 and RMB735.3 million in the
fourth quarter of 2017. The sequential increase was mainly
attributable to an increase in the shipment of solar modules in the
fourth quarter of 2018. The year-over-year increase was mainly
attributable to (i) an increase in the shipment of solar
modules, and (ii) the benefit of Countervailing Duty ("CVD")
reversal of RMB140.8 million and
RMB69.4 million (US$10.0 million) in the third and fourth
quarter of 2018, respectively, based on the amended final results
of the fourth administrative review of the CVD order published by
the U.S. Department of Commerce. The year-over-year increase
was partially offset by a decline in the average selling price
of solar modules in 2018.
Gross margin was 14.7% in the fourth quarter of 2018, compared
with 14.9% in the third quarter of 2018 and 11.6% in the fourth
quarter of 2017. Excluding the CVD reversal benefit, gross
margin was 13.8% in the fourth quarter of 2018, compared with
12.8% in the third quarter of 2018. The sequential increase was
attributable to decrease in solar module cost, which was partially
offset by decline in the average selling price of solar modules.
The year-over-year increase was mainly attributable to (i) a
decrease in solar module cost, and (ii) the benefit of
CVD reversal, which was partially offset by decline in the
average selling price of solar modules in 2018.
Income from Operations and Operating Margin
Income from operations in the fourth quarter of 2018 was
RMB237.4 million (US$34.5 million), compared with RMB188.0 million in the third quarter of 2018 and
RMB91.3 million in the fourth quarter
of 2017. Excluding the CVD reversal benefit, income from
operations in the fourth quarter of 2018 was RMB168.0 million (US$24.4
million), compared with RMB47.6
million in the third quarter of 2018. Operating margin in
the fourth quarter of 2018 was 3.1%, compared with 2.8% in the
third quarter of 2018 and 1.4% in the fourth quarter of 2017.
Excluding the CVD reversal benefit, operating margin in the
fourth quarter of 2018 was 2.2%.
Total operating expenses in the fourth quarter of 2018 were
RMB895.1 million (US$130.2 million), an increase of 10.6% from
RMB809.6 million in the third quarter
of 2018 and an increase of 39.0% from RMB644.0 million in the fourth quarter of 2017.
The sequential and year-over-year increases were mainly due to an
increase in shipping costs as a result of an increase in solar
module shipments.
Total operating expenses accounted for 11.6% of total revenues
in the fourth quarter of 2018, compared to 12.1% in the third
quarter of 2018 and 10.1% in the fourth quarter of 2017.
Interest Expense, Net
Net interest expense in the fourth quarter of 2018 was
RMB74.0 million (US$10.8 million), an increase of 33.2%
from RMB55.6 million in the third
quarter of 2018 and an increase of 33.3% from RMB55.6 million in the fourth quarter of 2017.
The sequential increase was mainly due to (i) an increase in
borrowings, and (ii) the termination of interest capitalization on
certain completed solar projects, which were partially offset by an
increase of interest income. The year-over-year increase was mainly
due to an increase in borrowings.
Exchange Gain / (Loss), Net and Change in Fair Value of
Forward Contracts
The Company recorded a net exchange loss (including change
in fair value of forward contracts) of RMB33.9 million (US$4.9 million) in the fourth quarter of
2018, compared to a net exchange gain of RMB93.5 million in the third quarter of 2018 and
a net exchange loss of RMB33.9
million in the fourth quarter of 2017. The sequential
change was primarily due to the depreciation of the US dollar
against the RMB.
Change in Fair Value of Interest Rate Swap
The Company entered into Interest Rate Swap agreements with
several banks for the purpose of reducing interest rate risk
exposure associated with the Company's overseas solar power
projects. The Company recorded a loss arising from change in
fair value of interest rate swap of RMB38.5 million (US$5.6 million) in the fourth quarter of
2018, compared to a gain of RMB12.8 million in the third quarter of
2018. The sequential changes were primarily due to a decrease
in the long-term interest rates. The Company did not
elect hedge accounting for any of its derivatives.
Change in Fair Value of Foreign
Exchange Options
The Company bought foreign exchange options from several banks
for the purpose of reducing exchange rate risk exposure. The
Company recorded a loss of RMB1.2
million (US$0.2 million)
arising from change in fair value of the foreign exchange options,
compared to a loss of RMB8.5 million
in the third quarter of 2018. The sequential change was primarily
due to the decrease in the remaining term of the options.
Equity in Income of Affiliated Companies
The Company indirectly holds a 20% equity interest in Sweihan PV
Power Company P.J.S.C, a developer and operator of solar power
projects in Dubai, and accounts
for its investment using the equity method. The Company also holds
a 30% equity interest in Jiangsu Jinko-Tiansheng Co., Ltd, which
processes and assembles PV modules as an OEM
manufacturer, and accounts for its investments using the equity
method. The Company recorded equity in loss of affiliated
companies of RMB25.1 million
(US$3.6 million) in the fourth
quarter of 2018, compared with an income of RMB4.9 million in the third quarter of 2018 and a
loss of RMB1.4 million in the
fourth quarter of 2017. The sequential change was primarily
due to a loss arising from change in fair value of interest rate
swap agreements purchased by Sweihan PV Power Company P.J.S.C.
Income Tax Benefit / (Expense), Net
The Company recorded an income tax benefit of RMB43.5 million (US$6.3 million) in the fourth quarter of
2018, as certain subsidiaries of the Company experienced
loss in the fourth quarter and recognized corresponding deferred
tax assets, compared with an income tax expense of RMB61.2 million in the third quarter of 2018 and
an income tax expense of RMB31.1
million in the fourth quarter of 2017.
Net Income and Earnings per Share
Net income attributable to the Company's ordinary shareholders
was RMB114.8 million
(US$16.7 million) in the fourth
quarter of 2018, compared with RMB189.1
million in the third quarter of 2018 and RMB22.5 million in the fourth quarter of
2017.
Basic and diluted earnings per ordinary share
were both RMB0.73 (US$0.11) during the fourth
quarter of 2018. This translates into basic and diluted earnings
per ADS both of RMB2.92 (US$0.44).
Non-GAAP net income attributable to the Company's ordinary
shareholders in the fourth quarter of 2018 was RMB111.8 million (US$16.3 million), compared with RMB206.3 million in the third quarter of 2018 and
RMB41.5 million in the fourth quarter
of 2017.
Non-GAAP basic and diluted earnings per ordinary share
were both of RMB0.71 (US$0.10) during the fourth
quarter of 2018. This translates into non-GAAP basic and diluted
earnings per ADS both of RMB2.84 (US$0.40).
Financial Position
As of December 31, 2018, the
Company had RMB3.48 billion
(US$506.4 million) in cash and
cash equivalents and restricted cash, compared with RMB2.76 billion as of December 31,
2017.
As of December 31, 2018, the
Company's accounts receivables due from third parties were
RMB5.44 billion (US$790.7 million), compared with
RMB4.50 billion as of
December 31, 2017.
As of December 31, 2018, the
Company's inventories were RMB5.74 billion (US$835.3 million), compared with
RMB4.27 billion as of
December 31, 2017.
As of December 31, 2018, the
Company's total interest-bearing debts were RMB9.71 billion (US$1.41 billion), compared with RMB7.43 billion as of December 31,
2017.
Full Year 2018 Financial Results
Total Revenues
Total revenues for the full year 2018 were RMB25.04 billion (US$3.64
billion), a decrease of 5.4% from RMB26.47 billion for the full year 2017. The
decrease in total revenues was mainly attributable to a decline in
the average selling price of solar modules, which was partially
offset by an increase in shipment of solar modules.
Gross Profit and Gross Margin
Gross profit for the full year 2018 was RMB3.51 billion (US$511.1
million), an increase of 17.5% from RMB2.99 billion for the full year 2017. Gross
margin was 14.0% for the full year 2018, compared with 11.3% for
the full year 2017. The year-over-year increase was mainly
attributable to (i) an increase in the shipment of solar modules in
2018, which was partially offset by a decline in the average
selling price of solar modules and (ii) the benefit of
CVD reversal of RMB
209.7 million (US$30.5
million), based on the amended final results of
the fourth administrative review of the CVD order published by the
U.S. Department of Commerce. Excluding the CVD reversal
benefit, gross margin was 13.2% for the full year 2018. The
year-over-year increase was attributable to decrease in solar
module cost, which was partially offset by decline in the average
selling price of solar modules in 2018.
Income from Operations and Operating Margin
Income from operations for the full year 2018 was RMB644.9 million (US$93.8
million), compared with RMB325.3
million for the full year 2017. Operating margin for the
full year 2018 was 2.6%, compared with 1.2% for the full year
2017.
Total operating expenses for the full year 2018 were
RMB2.87 billion (US$417.3 million), an increase of 7.6% from
RMB2.67 billion for the full year
2017. Operating expenses represented 11.5% of total revenues for
the full year 2018, compared with 10.1% for the full year 2017. The
increase in total operating expenses was primarily due to the
decrease in disposal gains of property, plant and equipment, and a
decrease in the reversal of allowance for doubtful accounts upon
subsequent collections.
Interest Expense, Net
Net interest expense for the full year 2018 was RMB295.7 million (US$43.0
million), an increase of 20.4% from RMB245.5 million in 2017. The year-over-year
increase was mainly due to the increase in borrowings.
Exchange Gain / (Loss), Net and Change in Fair Value of
Forward Contracts
The Company recorded a net exchange loss (including change
in fair value of forward contracts) of RMB10.4 million (US$1.5
million) for the full year 2018 due primarily to
appreciation of US dollars against RMB. The Company had net
exchange loss of RMB122.6 million in
2017. The year-over-year decrease was mainly due to appreciation of
US dollars against RMB.
Change in Fair Value of Interest Rate Swap
The Company entered into Interest Rate Swap agreements with
several banks for the purpose of reducing interest rate risk
exposure. The Company recorded a gain of RMB9.7 million (US$1.4 million) arising from change in
fair value of the Interest Rate Swap agreements, compared to a
loss of RMB16.1 million
in 2017. The year-over-year changes were primarily due to
an increase in the long-term interest
rates. The Company did not elect hedge accounting for any of
its derivatives.
Change in Fair Value of Foreign
Exchange Options
The Company bought foreign exchange options from several banks
for the purpose of reducing exchange rate risk exposure. The
Company recorded a loss of RMB9.7 million (US$1.4 million) arising from
change in fair value of the foreign exchange options. The
loss from foreign exchange options was primarily due to the
appreciation of the US dollar against the RMB.
Equity in Income of Affiliated Companies
The Company indirectly holds a 20% equity interest of Sweihan PV
Power Company P.J.S.C, a developer and operator of solar power
projects in Dubai, and accounts
for its investments using the equity method. The Company also holds
a 30% equity interest in Jiangsu Jinko-Tiansheng Co., Ltd, which
processes and assembles PV modules as an OEM
manufacturer, and accounts for its investments using the equity
method. The Company recorded equity in income of affiliated
companies of RMB2.6 million
(US$0.4 million) for the full
year 2018, compared with a loss of RMB2.1 million in 2017.
Income Tax Expense, Net
The Company recognized an income tax expense of RMB4.4 million (US$0.6
million) for the full year 2018, compared with an income tax
expense of RMB4.6 million in
2017.
Net Income and Earnings per Share
Net income attributable to the Company's ordinary shareholders
for the full year 2018 was RMB406.5
million (US$59.1 million),
compared with a net income of RMB141.7
million in 2017.
Basic and diluted earnings per share for the full year 2018 were
RMB2.64 (US$0.38) and
RMB2.63 (US$0.38), respectively.
This translates into basic and diluted earnings per ADS of
RMB10.56 (US$1.52) and
RMB10.52 (US$1.52),
respectively.
Non-GAAP net income for the full year 2018 was RMB435.8 million (US$63.4
million), compared with non-GAAP net income of RMB209.0 million in 2017.
Non-GAAP basic and diluted earnings per share for the full year
2018 were RMB2.83 (US$0.41) and
RMB2.82 (US$0.41), respectively,
which translates into non-GAAP basic and diluted earnings per ADS
of RMB11.32 (US$1.64) and
RMB11.28 (US$1.64),
respectively.
Fourth Quarter and Full Year 2018 Operational
Highlights
Solar Module Shipments
Total solar module shipments in the fourth quarter of 2018 were
3,618 MW.
Total solar module shipments in 2018 were 11.4 GW (including 209
MW to be used in the Company's overseas downstream solar projects),
compared to 9.8 GW in 2017.
Solar Products Production Capacity
As of December 31, 2018, the
Company's in-house annual silicon wafer, solar cell and solar
module production capacity was 9.7 GW, 7.0 GW and 10.8 GW,
respectively.
JinkoSolar expects its annual silicon wafer, solar cell and
solar module production capacity to reach 15 GW (including 11 GW of
mono wafers), 10 GW (including 9.2 GW of PERC cells) and 15 GW,
respectively, by the end of 2019.
Recent Business Developments
- In October 2018, JinkoSolar
announced that it had entered into the Contract for the Supply of
PV Modules with Decmil Australia Pty Ltd on September 27, 2018, for supply 255MWp of its high
efficient solar panels for the Sunraysia Solar Farm developed by
Maoneng Group.
- In November 2018, JinkoSolar
announced that it was awarded the 2018 World Brand Award by the
World Brand Forum, a global non-profit organization dedicated to
advancing branding standards for the good of the branding community
as well as consumers.
- In December 2018, JinkoSolar
announced that it supplied 55.7MW of high-efficiency modules to the
Garissa Solar Power Plant, which is expected to be one of the
largest solar power plants in central and eastern Africa once completed.
- In December 2018, JinkoSolar
announced that it supplied 132 MWdc of PV modules to Swinerton
Renewable Energy for the construction of the Techren Solar 1
Project in Boulder City,
Nevada.
- In December 2018, JinkoSolar
announced that it had contributed to the Business 20 (B20) Energy,
Resource Efficiency & Sustainability (ERES) Task Force for
inclusion of the task force's policy proposal in the G20 Leaders'
Declaration, Buenos Aires.
- In January 2019, JinkoSolar
announced that a record high efficiency of 24.2% was achieved by
its large-area N-type TOPCon monocrystalline silicon solar
cell.
- In January 2019, JinkoSolar
announced that its products underwent LeTID testing by Wind Power
Systems Quality Test Center, IEE, and CAS.
Operations and Business Outlook
First Quarter and Full Year 2019 Guidance
For the first quarter of 2019, the Company estimates total solar
module shipments to be in the range of 2.8 GW to 3.0
GW.
For the full year 2019, the Company estimates total solar module
shipments to be in the range of 14.0 GW to 15.0 GW.
Conference Call Information
JinkoSolar's management will host an earnings conference call on
Friday, March 22, 2019 at
8:30 a.m. U.S. Eastern Time
(8:30 p.m. Beijing / Hong
Kong the same day).
Dial-in details for the earnings conference call are as
follows:
Hong Kong /
International:
|
+852 3027
6500
|
U.S. Toll
Free:
|
+1
855-824-5644
|
Passcode:
|
58454648#
|
Please dial in 10 minutes before the call is scheduled to begin
and provide the passcode to join the call.
A telephone replay of the call will be available 2 hours after
the conclusion of the conference call through 23:59 U.S. Eastern
Time, March 29, 2019. The dial-in
details for the replay are as follows:
International:
|
+61 2 8325
2405
|
U.S.:
|
+1 646 982
0473
|
Passcode:
|
319314070#
|
Additionally, a live and archived webcast of the conference call
will be available on the Investor Relations section of JinkoSolar's
website at www.jinkosolar.com.
About JinkoSolar Holding Co., Ltd.
JinkoSolar (NYSE: JKS) is one of the world's largest and
foremost solar module manufacturers. JinkoSolar distributes
its solar products and sells its solutions and services to a
diversified international utility, commercial and residential
customer base in China,
the United States, Japan, Germany, the United
Kingdom, Chile,
South Africa, India, Mexico, Brazil, the United
Arab Emirates, Italy,
Spain, France, Belgium, and other countries and regions.
JinkoSolar has built a vertically integrated solar product value
chain, with an integrated annual capacity of 9.7 GW for
silicon wafers, 7.0 GW for solar cells, and 10.8 GW for
solar modules, as of December 31,
2018.
JinkoSolar has over 12,000 employees across its
6 productions facilities globally, 15 oversea subsidiaries in
Japan, Korea, Singapore, India, Turkey, Germany, Italy, Switzerland, United
States, Canada,
Mexico, Brazil, Chile, Australia and United
Arab Emirates, and global sales teams in United Kingdom, France, Netherlands, Spain, Bulgaria, Greece, Romania, Ukraine, Jordan, Saudi
Arabia, Tunisia, Egypt, Morocco, Nigeria, Kenya, South
Africa, Costa Rica,
Colombia, Panama and Argentina.
To find out more, please see: www.jinkosolar.com
Use of Non-GAAP Financial Measures
To supplement its consolidated financial results presented in
accordance with United States Generally Accepted Accounting
Principles ("GAAP"), JinkoSolar uses certain non-GAAP financial
measures including, non-GAAP net income, non-GAAP earnings per
Share, and non-GAAP earnings per ADS, which are adjusted from the
comparable GAAP results to exclude certain expenses or incremental
ordinary shares relating to share-based compensation and,
convertible senior notes:
- Non-GAAP net income is adjusted to exclude the expenses
relating to interest expenses of convertible senior notes, exchange
gain on the convertible senior notes, and stock-based compensation;
given these Non-GAAP net income adjustments above are either
related to the Company or its subsidiaries incorporated in
Cayman Islands, which are not
subject to tax exposures, or related to those subsidiaries with tax
loss positions which result in no tax impacts, therefore no tax
adjustment is needed in conjunction with these Non-GAAP net income
adjustments; and
- Non-GAAP earnings per Share and non-GAAP earnings per ADS are
adjusted to exclude interest expenses of convertible senior notes
and exchange gain on the convertible senior notes, and stock-based
compensation.
The Company believes that the use of non-GAAP information is
useful for analysts and investors to evaluate JinkoSolar's current
and future performances based on a more meaningful comparison of
net income and diluted net income per ADS when compared with its
peers and historical results from prior periods. These measures are
not intended to represent or substitute numbers as measured under
GAAP. The submission of non-GAAP numbers is voluntary and should be
reviewed together with GAAP results.
Currency Convenience Translation
The conversion of Renminbi into U.S. dollars in this release,
made solely for the convenience of the readers, is based on the
noon buying rate in the city of New
York for cable transfers of Renminbi as certified for
customs purposes by the Federal Reserve Bank of New York as of December
31, 2018, which was RMB6.8755
to US$1.00. No representation is
intended to imply that the Renminbi amounts could have been, or
could be, converted, realized, or settled into U.S. dollars at that
rate or any other rate. The percentages stated in this press
release are calculated based on Renminbi.
Safe-Harbor Statement
This press release contains forward-looking statements. These
statements constitute "forward-looking" statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
and as defined in the U.S. Private Securities Litigation Reform Act
of 1995. These forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "future,"
"intends, "plans," "believes," "estimates" and similar statements.
Among other things, the quotations from management in this press
release and the Company's operations and business outlook, contain
forward-looking statements. Such statements involve certain risks
and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. Further
information regarding these and other risks is included in
JinkoSolar's filings with the U.S. Securities and Exchange
Commission, including its annual report on Form 20-F. Except as
required by law, the Company does not undertake any obligation to
update any forward-looking statements, whether as a result of new
information, future events or otherwise.
For investor and media inquiries, please contact:
In China:
Sebastian Liu
JinkoSolar Holding Co., Ltd.
Tel: +86 21-5183-3056
Email: ir@jinkosolar.com
Christian Arnell
Christensen
Tel: +86-10-5900-2940
Email: carnell@christensenir.com
In the U.S.:
Ms. Linda
Bergkamp
Christensen
Tel: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com
JINKOSOLAR HOLDING
CO., LTD.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except ADS and Share data)
|
|
|
|
2017
|
|
2018
|
Continuing
operations
|
RMB
|
|
RMB
|
|
USD
|
Revenues from
third parties
|
24,791,272
|
|
23,586,834
|
|
3,430,563
|
|
|
|
|
|
|
Revenues from
related parties
|
1,681,671
|
|
1,455,779
|
|
211,734
|
|
|
|
|
|
|
Total
revenues
|
26,472,943
|
|
25,042,613
|
|
3,642,297
|
|
|
|
|
|
|
Cost of
revenues
|
(23,481,375)
|
|
(21,528,868)
|
|
(3,131,244)
|
|
|
|
|
|
|
Gross
profit
|
2,991,568
|
|
3,513,745
|
|
511,053
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Selling
and marketing
|
(1,901,358)
|
|
(1,708,270)
|
|
(248,458)
|
General
and administrative
|
(470,845)
|
|
(779,423)
|
|
(113,362)
|
Research
and development
|
(294,103)
|
|
(366,577)
|
|
(53,316)
|
Impairment of long-lived assets
|
-
|
|
(14,548)
|
|
(2,116)
|
Total operating
expenses
|
(2,666,306)
|
|
(2,868,818)
|
|
(417,252)
|
|
|
|
|
|
|
Income from
operations
|
325,262
|
|
644,927
|
|
93,801
|
Interest
expenses, net
|
(245,530)
|
|
(295,692)
|
|
(43,007)
|
Subsidy
income
|
147,917
|
|
52,176
|
|
7,589
|
Exchange
gain/(loss), net
|
(114,345)
|
|
33,681
|
|
4,899
|
Change in fair
value of interest rate swap
|
(16,122)
|
|
9,701
|
|
1,411
|
Change in fair
value of foreign exchange options
|
-
|
|
(9,720)
|
|
(1,414)
|
Change in fair
value of forward contracts
|
(8,211)
|
|
(44,090)
|
|
(6,413)
|
Other income,
net
|
59,647
|
|
25,817
|
|
3,755
|
(Loss)/gain on
disposal of subsidiaries
|
257
|
|
(9,425)
|
|
(1,371)
|
Income before
income taxes
|
148,875
|
|
407,375
|
|
59,250
|
Income tax
expense
|
(4,627)
|
|
(4,411)
|
|
(641)
|
Equity in
income/(loss) of affiliated companies
|
(2,056)
|
|
2,610
|
|
379
|
Net
income
|
142,192
|
|
405,574
|
|
58,988
|
Less: Net
(loss)/income attributable to non-controlling
interests
|
486
|
|
(903)
|
|
(132)
|
Net income
attributable to JinkoSolar Holding Co., Ltd.'s ordinary
shareholders
|
141,706
|
|
406,477
|
|
59,120
|
|
|
|
|
|
|
Net income
attributable to JinkoSolar Holding Co., Ltd.'s
ordinary shareholders per share:
|
|
|
|
|
|
Basic
|
1.10
|
|
2.64
|
|
0.38
|
Diluted
|
1.08
|
|
2.63
|
|
0.38
|
|
|
|
|
|
|
Net income
attributable to JinkoSolar Holding Co., Ltd.'s
ordinary shareholders per ADS:
|
|
|
|
|
|
Basic
|
4.40
|
|
10.56
|
|
1.52
|
Diluted
|
4.32
|
|
10.52
|
|
1.52
|
|
|
|
|
|
|
Weighted
average ordinary shares outstanding:
|
|
|
|
|
|
Basic
|
128,944,330
|
|
153,806,379
|
|
153,806,379
|
Diluted
|
131,687,230
|
|
154,704,166
|
|
154,704,166
|
|
|
|
|
|
|
Weighted
average ADS outstanding:
|
|
|
|
|
|
Basic
|
32,236,083
|
|
38,451,595
|
|
38,451,595
|
Diluted
|
32,921,808
|
|
38,676,041
|
|
38,676,041
|
|
|
|
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
|
|
|
|
|
|
|
Net
income
|
142,192
|
|
405,574
|
|
58,988
|
Other
comprehensive income/(loss):
|
|
|
|
|
|
-Foreign
currency translation adjustments
|
(81,488)
|
|
47,005
|
|
6,836
|
Comprehensive
income
|
60,704
|
|
452,579
|
|
65,824
|
Less:
comprehensive (loss)/income attributable to non-controlling
interests
|
486
|
|
(903)
|
|
(132)
|
Comprehensive
income attributable to JinkoSolar Holding Co.,
Ltd.'s ordinary shareholders
|
60,218
|
|
453,482
|
|
65,956
|
|
|
|
|
|
|
Reconciliation
of GAAP and non-GAAP Results
|
|
|
|
|
|
|
|
|
|
|
1. Non-GAAP
earnings per share and non-GAAP earnings per ADS
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to ordinary shareholders
|
141,706
|
|
406,477
|
|
59,120
|
|
|
|
|
|
|
4% of interest
expense of convertible senior notes
|
1,558
|
|
3
|
|
0
|
|
|
|
|
|
|
Exchange loss
on convertible senior notes and capped call
options
|
840
|
|
4
|
|
1
|
|
|
|
|
|
|
Stock-based
compensation expense
|
64,868
|
|
29,308
|
|
4,263
|
|
|
|
|
|
|
Non-GAAP net
income attributable to ordinary shareholders
|
208,972
|
|
435,792
|
|
63,384
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
earnings per share attributable to ordinary shareholders
-
|
|
|
|
|
|
Basic
|
1.62
|
|
2.83
|
|
0.41
|
Diluted
|
1.59
|
|
2.82
|
|
0.41
|
|
|
|
|
|
|
Non-GAAP
earnings per ADS attributable to ordinary shareholders
-
|
|
|
|
|
|
Basic
|
6.48
|
|
11.32
|
|
1.64
|
Diluted
|
6.36
|
|
11.28
|
|
1.64
|
|
|
|
|
|
|
Non-GAAP
weighted average ordinary shares outstanding
|
|
|
|
|
|
Basic
|
128,944,330
|
|
153,806,379
|
|
153,806,379
|
Diluted
|
131,687,230
|
|
154,704,166
|
|
154,704,166
|
|
|
|
|
|
|
Non-GAAP
weighted average ADS outstanding
|
|
|
|
|
|
Basic
|
32,236,083
|
|
38,451,595
|
|
38,451,595
|
Diluted
|
32,921,808
|
|
38,676,041
|
|
38,676,041
|
JINKOSOLAR HOLDING
CO., LTD.
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except ADS and Share data)
|
|
For the quarter
ended
|
|
December 31,
2017
|
|
September 30,
2018
|
|
December 31,
2018
|
Continuing
operations
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Revenues from
third parties
|
5,171,540
|
|
6,601,414
|
|
7,695,214
|
|
1,119,223
|
|
|
|
|
|
|
|
|
Revenues from
related parties
|
1,181,100
|
|
93,401
|
|
25,118
|
|
3,653
|
|
|
|
|
|
|
|
|
Total
revenues
|
6,352,640
|
|
6,694,815
|
|
7,720,332
|
|
1,122,876
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
(5,617,326)
|
|
(5,697,186)
|
|
(6,587,907)
|
|
(958,171)
|
|
|
|
|
|
|
|
|
Gross
profit
|
735,314
|
|
997,629
|
|
1,132,425
|
|
164,705
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling
and marketing
|
(446,956)
|
|
(476,640)
|
|
(551,658)
|
|
(80,235)
|
General
and administrative
|
(113,744)
|
|
(228,862)
|
|
(249,221)
|
|
(36,248)
|
Research
and development
|
(83,271)
|
|
(104,105)
|
|
(94,183)
|
|
(13,698)
|
Total operating
expenses
|
(643,971)
|
|
(809,607)
|
|
(895,062)
|
|
(130,181)
|
|
|
|
|
|
|
|
|
Income from
operations
|
91,343
|
|
188,022
|
|
237,363
|
|
34,524
|
Interest
expenses, net
|
(55,551)
|
|
(55,600)
|
|
(74,047)
|
|
(10,770)
|
Subsidy
income
|
29,533
|
|
4,742
|
|
8,234
|
|
1,199
|
Exchange
(loss)/gain
|
(31,827)
|
|
118,712
|
|
(36,006)
|
|
(5,237)
|
Change in fair
value of interest rate swap
|
3,333
|
|
12,781
|
|
(38,467)
|
|
(5,595)
|
Change in fair
value of foreign exchange options
|
-
|
|
(8,522)
|
|
(1,198)
|
|
(174)
|
Change in fair
value of forward contracts
|
(2,031)
|
|
(25,204)
|
|
2,148
|
|
311
|
Other
(expense)/income, net
|
20,823
|
|
9,983
|
|
(2,287)
|
|
(333)
|
Gain on
disposal of subsidiaries
|
257
|
|
-
|
|
-
|
|
-
|
Income before
income taxes
|
55,880
|
|
244,914
|
|
95,740
|
|
13,925
|
Income tax
benefit/(expense)
|
(31,095)
|
|
(61,157)
|
|
43,451
|
|
6,320
|
Equity in
(loss)/income of affiliated companies
|
(1,424)
|
|
4,916
|
|
(25,090)
|
|
(3,649)
|
Net
income
|
23,361
|
|
188,673
|
|
114,101
|
|
16,596
|
Less: Net
(loss)/income attributable to non-controlling
interests
|
889
|
|
(415)
|
|
(712)
|
|
(103)
|
Net income
attributable to JinkoSolar
Holding Co., Ltd.'s ordinary shareholders
|
22,472
|
|
189,088
|
|
114,813
|
|
16,699
|
|
|
|
|
|
|
|
|
Net income
attributable to JinkoSolar Holding Co., Ltd.'s
ordinary shareholders per share:
|
|
|
|
|
|
|
|
Basic
|
0.17
|
|
1.21
|
|
0.73
|
|
0.11
|
Diluted
|
0.17
|
|
1.21
|
|
0.73
|
|
0.11
|
|
|
|
|
|
|
|
|
Net income
attributable to JinkoSolar Holding Co., Ltd.'s
ordinary shareholders per ADS:
|
|
|
|
|
|
|
|
Basic
|
0.68
|
|
4.84
|
|
2.92
|
|
0.44
|
Diluted
|
0.68
|
|
4.84
|
|
2.92
|
|
0.44
|
|
|
|
|
|
|
|
|
Weighted
average ordinary shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
130,432,074
|
|
156,485,510
|
|
156,855,085
|
|
156,855,085
|
Diluted
|
134,572,596
|
|
156,703,443
|
|
156,859,208
|
|
156,859,208
|
|
|
|
|
|
|
|
|
Weighted
average ADS outstanding:
|
|
|
|
|
|
|
|
Basic
|
32,608,019
|
|
39,121,378
|
|
39,213,771
|
|
39,213,771
|
Diluted
|
33,643,149
|
|
39,175,861
|
|
39,214,802
|
|
39,214,802
|
|
|
|
|
|
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
|
|
|
|
|
|
|
|
|
Net
income
|
23,361
|
|
188,673
|
|
114,101
|
|
16,596
|
Other
comprehensive income:
|
|
|
|
|
|
|
|
-Foreign
currency translation adjustments
|
(16,308)
|
|
28,720
|
|
3,670
|
|
534
|
Comprehensive
income
|
7,053
|
|
217,393
|
|
117,771
|
|
17,130
|
Less:
Comprehensive (loss)/income attributable to non-
controlling interests
|
889
|
|
(415)
|
|
(712)
|
|
(103)
|
Comprehensive
income attributable to JinkoSolar
Holding Co., Ltd.'s ordinary shareholders
|
6,164
|
|
217,808
|
|
118,483
|
|
17,233
|
|
|
|
|
|
|
|
|
Reconciliation
of GAAP and non-GAAP Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. Non-GAAP
earnings per share and non-GAAP
earnings per ADS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to ordinary shareholders
|
22,472
|
|
189,088
|
|
114,813
|
|
16,699
|
|
|
|
|
|
|
|
|
4% of interest
expense of convertible senior notes
|
1
|
|
1
|
|
1
|
|
-
|
|
|
|
|
|
|
|
|
Exchange
loss/(gain) on convertible senior notes and
capped call options
|
(1)
|
|
3
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
Stock-based
compensation (benefit)/expense
|
19,000
|
|
17,255
|
|
(3,023)
|
|
(440)
|
|
|
|
|
|
|
|
|
Non-GAAP net
income attributable to ordinary
shareholders
|
41,472
|
|
206,347
|
|
111,791
|
|
16,259
|
|
|
|
|
|
|
|
|
Non-GAAP
earnings per share attributable to ordinary
shareholders -
|
|
|
|
|
|
|
|
Basic
|
0.32
|
|
1.32
|
|
0.71
|
|
0.10
|
Diluted
|
0.31
|
|
1.32
|
|
0.71
|
|
0.10
|
|
|
|
|
|
|
|
|
Non-GAAP
earnings per ADS attributable to ordinary
shareholders -
|
|
|
|
|
|
|
|
Basic
|
1.28
|
|
5.28
|
|
2.84
|
|
0.40
|
Diluted
|
1.24
|
|
5.28
|
|
2.84
|
|
0.40
|
|
|
|
|
|
|
|
|
Non-GAAP
weighted average ordinary shares outstanding
|
|
|
|
|
|
|
|
Basic
|
130,432,074
|
|
156,485,510
|
|
156,855,085
|
|
156,855,085
|
Diluted
|
134,572,596
|
|
156,703,443
|
|
156,859,208
|
|
156,859,208
|
|
|
|
|
|
|
|
|
Non-GAAP
weighted average ADS outstanding
|
|
|
|
|
|
|
|
Basic
|
32,608,019
|
|
39,121,378
|
|
39,213,771
|
|
39,213,771
|
Diluted
|
33,643,149
|
|
39,175,861
|
|
39,214,802
|
|
39,214,802
|
JINKOSOLAR HOLDING
CO., LTD.
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
|
December 31,
2017
|
|
December 31,
2018
|
|
RMB
|
|
RMB
|
|
USD
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
1,928,303
|
|
3,104,917
|
|
451,591
|
Restricted
cash
|
833,072
|
|
377,111
|
|
54,849
|
Restricted
short-term investments
|
3,237,773
|
|
4,058,419
|
|
590,273
|
Short-term
investments
|
2,685
|
|
-
|
|
-
|
Accounts
receivable, net - related parties
|
2,113,042
|
|
675,768
|
|
98,286
|
Accounts
receivable, net - third parties
|
4,497,635
|
|
5,436,371
|
|
790,687
|
Notes
receivable, net - third parties
|
571,232
|
|
1,010,469
|
|
146,967
|
Advances to
suppliers, net - third parties
|
397,076
|
|
665,221
|
|
96,752
|
Inventories,
net
|
4,273,730
|
|
5,743,328
|
|
835,332
|
Forward
contract receivables
|
-
|
|
1,192
|
|
173
|
Other
receivables - related parties
|
46,592
|
|
67,730
|
|
9,851
|
Derviatvie
assets
|
-
|
|
847
|
|
123
|
Prepayments
and other current assets
|
1,706,717
|
|
1,712,889
|
|
249,129
|
Total current
assets
|
19,607,857
|
|
22,854,262
|
|
3,324,013
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Restricted
cash
|
248,672
|
|
921,300
|
|
133,998
|
Project
Assets
|
473,731
|
|
1,770,621
|
|
257,526
|
Long-term
investments
|
22,322
|
|
25,531
|
|
3,713
|
Property,
plant and equipment, net
|
6,680,187
|
|
8,275,900
|
|
1,203,680
|
Land use
rights, net
|
443,269
|
|
574,945
|
|
83,622
|
Intangible
assets, net
|
25,743
|
|
35,361
|
|
5,143
|
Deferred tax
assets
|
275,372
|
|
338,069
|
|
49,170
|
Other assets -
related parties
|
146,026
|
|
144,984
|
|
21,088
|
Other assets -
third parties
|
713,226
|
|
912,210
|
|
132,675
|
Total non-current
assets
|
9,028,548
|
|
12,998,921
|
|
1,890,615
|
|
|
|
|
|
|
Total
assets
|
28,636,405
|
|
35,853,183
|
|
5,214,628
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable - related parties
|
5,329
|
|
698
|
|
102
|
Accounts
payable - third parties
|
4,658,202
|
|
5,327,094
|
|
774,794
|
Notes payable
- related parties
|
-
|
|
35,000
|
|
5,091
|
Notes payable
- third parties
|
5,672,497
|
|
6,036,577
|
|
877,984
|
Accrued
payroll and welfare expenses
|
721,380
|
|
810,921
|
|
117,944
|
Advances from
related parties
|
37,400
|
|
910
|
|
132
|
Advances
from third parties
|
748,959
|
|
2,395,229
|
|
348,372
|
Income tax
payable
|
27,780
|
|
70,240
|
|
10,216
|
Other payables
and accruals
|
1,804,799
|
|
2,281,025
|
|
331,758
|
Other payables
due to related parties
|
12,333
|
|
20,819
|
|
3,028
|
Forward
contract payables
|
4,521
|
|
9,464
|
|
1,376
|
Convertible
senior notes - current
|
-
|
|
69
|
|
10
|
Derivative
liability - current
|
26,486
|
|
12,786
|
|
1,860
|
Bond payable
and accrued interests
|
10,257
|
|
10,318
|
|
1,501
|
Short-term
borrowings from third parties,
including current portion of long-term
bank
borrowings
|
6,204,440
|
|
7,103,399
|
|
1,033,147
|
Guarantee
liabilities to related parties
|
28,034
|
|
26,639
|
|
3,874
|
Total current
liabilities
|
19,962,417
|
|
24,141,188
|
|
3,511,189
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Long-term
borrowings
|
379,789
|
|
1,954,831
|
|
284,318
|
Accrued income
tax - non current
|
6,041
|
|
-
|
|
-
|
Long-term
payables
|
538,410
|
|
338,412
|
|
49,220
|
Bond
payables
|
298,425
|
|
299,475
|
|
43,557
|
Accrued
warranty costs - non current
|
571,718
|
|
573,641
|
|
83,433
|
Convertible
senior notes
|
65
|
|
-
|
|
-
|
Deferred tax
liability
|
70,122
|
|
25,893
|
|
3,766
|
Guarantee
liabilities to related parties
- non current
|
120,154
|
|
65,765
|
|
9,565
|
Total non-current
liabilities
|
1,984,724
|
|
3,258,017
|
|
473,859
|
|
|
|
|
|
|
Total
liabilities
|
21,947,141
|
|
27,399,205
|
|
3,985,048
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
Ordinary shares
(US$0.00002 par value,
500,000,000 shares authorized, 126,733,266
and 156,864,737 shares issued and
outstanding as of December 31, 2017 and
December 31, 2018, respectively)
|
19
|
|
22
|
|
3
|
Additional paid-in
capital
|
3,313,608
|
|
4,010,740
|
|
583,338
|
Statutory
reserves
|
516,886
|
|
570,176
|
|
82,929
|
Accumulated other
comprehensive income
|
23,296
|
|
70,301
|
|
10,225
|
Treasury stock, at
cost; 1,723,200 ordinary
shares as of December 31, 2017 and
December 31, 2018
|
(13,876)
|
|
(13,876)
|
|
(2,018)
|
Accumulated retained
earnings
|
2,849,341
|
|
3,202,528
|
|
465,788
|
|
|
|
|
|
|
Total JinkoSolar
Holding Co., Ltd.
shareholders' equity
|
6,689,274
|
|
7,839,891
|
|
1,140,265
|
|
|
|
|
|
|
Non-controlling
interests
|
(10)
|
|
614,087
|
|
89,315
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
28,636,405
|
|
35,853,183
|
|
5,214,628
|
View original
content:http://www.prnewswire.com/news-releases/jinkosolar-announces-fourth-quarter-and-full-year-2018-financial-results-300816926.html
SOURCE JinkoSolar Holding Co., Ltd.