SHANGHAI, June 15, 2020 /PRNewswire/ -- JinkoSolar Holding
Co., Ltd. ("JinkoSolar" or the "Company") (NYSE: JKS), one of the
largest and most innovative solar module manufacturers in the
world, today announced its unaudited financial results for the
first quarter ended March 31,
2020.
Strategic Business Updates
- Technological transformation towards high-efficiency portfolio
of products now complete - mono wafer production capacity has been
fully ramped up to 18GW in April
2020.
- Sale of two solar power plants with a combined capacity of
155MW in Mexico was closed in
March 2020, allowing for the
deleveraging of the Company's balance sheet by US$121.3 million.
- Leading the industry towards grid parity with the launch of
2020 flagship Tiger Pro module series.
- Reaffirm 2020 full-year shipment guidance and capacity
expansion plan despite a decrease in global demand.
- Pandemic accelerating removal of outdated capacity in the
market providing an opportunity for leading industry players to
expand market share.
First Quarter 2020 Operational and
Financial Highlights
- Total solar module shipments were 3,411 megawatts ("MW"),
within JinkoSolar's guidance range of 3.4 GW to 3.7 GW, a decrease
of 24.8% from 4,538 MW in the fourth quarter of 2019 and an
increase of 12.3% from 3,037 MW in the first quarter of 2019.
- Total revenues were RMB8.48
billion (US$1.20 billion).
Excluding the impact from the disposal of the two solar power
plants in Mexico, revenues were
RMB7.29 billion (US$1.03 billion) and within JinkoSolar's guidance
range of US$1.00 billion to
US$1.08 billion; a decrease of 23.5%
from the fourth quarter of 2019 and an increase of 25.1% from the
first quarter of 2019.
- Gross margin was 19.5%. Excluding the impact from the disposal
of two solar power plants in Mexico, gross margin was 19.7%, within
JinkoSolar's guidance range of 19.0% to 21.0%, compared with 18.2%
in the fourth quarter of 2019 and 16.6% in the first quarter of
2019.
- Income from operations was RMB732.7
million (US$103.5 million).
Excluding the impact from the disposal of two solar power plants in
Mexico, income from operations was
RMB519.5 million (US$73.4 million), compared with RMB594.8 million in the fourth quarter of 2019
and RMB235.7 million in the first
quarter of 2019.
- Net income attributable to the Company's ordinary shareholders
was RMB282.4 million (US$39.9 million) in the first quarter of 2020,
compared with RMB369.5 million in the
fourth quarter of 2019 and RMB40.2
million in the first quarter of 2019.
- Diluted earnings per American depositary share ("ADS") were
RMB2.67 (US$0.38) in the first quarter of 2020.
- Non-GAAP net income attributable to the Company's ordinary
shareholders in the first quarter of 2020 was RMB227.5 million (US$32.1million), compared with RMB432.2 million in the fourth quarter of 2019
and RMB33.3 million in the first
quarter of 2019.
- Non-GAAP basic and diluted earnings per ADS were RMB5.09 (US$0.72)
and RMB4.59 (US$0.65), respectively, in the first quarter of
2020, compared with RMB9.74 for both
in the fourth quarter of 2019 and RMB0.85 and RMB0.84, respectively, in the first quarter of
2019.
Mr. Kangping Chen, JinkoSolar's
Chief Executive Officer commented, "JinkoSolar continued to
outperform during the quarter despite a very challenging global
operating environment. Total solar module shipments, total revenue
and gross margin were all within our guidance range for the
quarter. Module shipments hit a record high 3,411MW during the
quarter while total revenues were US$1.03 billion and gross margin was 19.7% if you
exclude the impact from the disposal of two solar power plants in
Mexico. As one of the world's
leading solar module manufacturers, we have leveraged our deep
experience to lead the industry through the pandemic which has
allowed us to not only further expand our market share but also
create technical standards and develop technological breakthroughs
for a variety of products. Our order book for the second quarter
and the rest of the year remains strong, and our guidance for total
shipments for the full year 2020 remains unchanged at 18 to 20
GW."
"While we expect global installations to fall by around 25% from
last year due to the pandemic, we see a number of growth
opportunities in the near-term as the market consolidates.
Governments around the world have refocused their attention on
energy security and localization, especially after the COVID-19
outbreak. As solar energy continues to race towards grid parity, we
expect more countries to implement policies that support solar
energy in the post-pandemic era, and at the same time, remove
outdated energy capacity, reduce the levelized cost of energy for
solar, and accelerate the application of new technologies to drive
the deeper penetration of solar energy globally. Smaller,
less-competitive manufacturers will gradually exit the market,
leaving more opportunities for a few key players to expand their
market share worldwide."
"Technology remains central to strengthening our competitive
edge in the market. We recently launched a new Tiger Pro series
module with a maximum power output of 580W. The pandemic has
actually accelerated the adoption of high-efficiency premium
products by downstream partners which is allowing the industry to
transition into the 500W ultra-high efficiency era earlier than
expected. We continue to lead the industry by developing and
launching innovative premium products, leveraging our
highly-skilled R&D team, industry-leading research platform and
expanding capacity to bring mass-produced cutting-edge products to
market."
"We continue to face a variety of challenges so far during the
second quarter of 2020. Despite falling raw material prices, there
has been a significant decline in overall global demand, and
varying degrees of logistics and project delays in overseas
markets. Our teams have been working hard to coordinate production,
logistics and sales, while optimizing inventory levels. We continue
to arrange shipments of personal protective equipment to our
Malaysian and U.S. production facilities and ensure we are doing
all we can to care for our employees, clients, suppliers and other
business partners during this challenging time."
First Quarter 2020 Financial Results
Total Revenues
Total revenues in the first quarter of 2020 were RMB8.48 billion (US$1.20
billion). In March 2020, the
Company disposed of two solar power plants in Mexico with a combined capacity of 155 MW to
an independent third party, and recognized revenue and cost of
sales in the amount of RMB1.20
billion (US$169.1 million) and
RMB979.7 million (US$138.4 million), respectively. Revenue from the
disposal is composed of RMB284.4
million (US$ 40.1 million) in
cash consideration and RMB1.29
billion (US$ 182.2 million) in
non-cash consideration related to the buyer assuming project debt
which was offset by settlement of loan receivables due from the
solar power plants in the amount of RMB
376.9 million (US$ 53.2
million). Excluding the impact from the disposal of two
solar power plants in Mexico,
revenue was RMB7.29 billion
(US$1.03 billion), a decrease of
23.5% from RMB9.53 billion in
the fourth quarter of 2019 and an increase of 25.1% from
RMB5.82 billion in the first
quarter of 2019. The sequential decrease was mainly attributable to
a decrease in the shipment of solar modules partially due to the
delay of module shipments caused by the outbreak of COVID-19.
The year-over-year increase was mainly attributable to the increase
in shipment of solar modules.
Gross Profit and Gross Margin
Gross profit in the first quarter of 2020 was RMB1.66 billion (US$234.0 million). Excluding the impact from
the disposal of two solar power plants in Mexico, gross profit was RMB1.44 billion (US$203.2 million), compared with RMB1.73 billion in the fourth quarter of
2019 and RMB964.3 million in the
first quarter of 2019. The sequential decrease was mainly
attributable to a decrease in the shipment of solar modules. The
year-over-year increase was mainly attributable to (i) an
increase in the shipment of solar modules, (ii) an increase in
self-produced production volume that is increasingly shifting
toward integrated mono-based high-efficiency products capacity,
and (iii) the continued reduction of integrated production
costs resulting from the Company's industry-leading integrated cost
structure.
Gross margin was 19.5% in the first quarter of 2020. Excluding
the impact from the disposal of two solar power plants in
Mexico, gross margin was 19.7%,
compared with 18.2% in the fourth quarter of 2019 and 16.6% in the
first quarter of 2019. The sequential and year-over-year
increases were mainly attributable to (i) an increase in
self-produced production volume by increasing shift toward
integrated mono-based high-efficiency products capacity, and (ii)
the continued reduction of integrated production costs resulting
from the Company's industry-leading integrated cost structure.
Income from Operations and Operating Margin
Income from operations in the first quarter of 2020 was
RMB732.7 million (US$103.5 million), including RMB213.2 million (US$30.1
million) from the disposal of two solar power plants in
Mexico, compared with RMB594.8 million in the fourth quarter of
2019 and RMB235.7 million in the
first quarter of 2019. Operating margin was 8.6% in the first
quarter of 2020. Excluding the impact from the disposal of two
solar power plants in Mexico,
operating margin was 7.1%, compared with 6.2% in the fourth
quarter of 2019 and 4.0% in the first quarter of 2019.
Total operating expenses in the first quarter of 2020 were
RMB924.2 million (US$130.5 million) including RMB4.8 million (US$ 0.7
million) from the disposal of two solar power plants in
Mexico, a decrease of 18.6% from
RMB1.13 billion in the fourth
quarter of 2019 and an increase of 26.8% from RMB728.6 million in the first quarter of 2019.
The sequential decease was mainly due to (i) a decrease in shipping
cost resulting from a decrease in solar module shipments, (ii) a
decrease of impairment loss on property, plant and equipment, and
(iii) a reversal of a previous bad debt provision upon cash receipt
of RMB52.5 million (USD7.4 million) based on final judgement for the
lawsuits with Wuxi Zhongcai. The year-over-year increase was
mainly due to an increase in shipping costs.
Total operating expenses accounted for 10.9% of total revenues
in the first quarter of 2020. Excluding the impact from the
disposal of two solar power plants in Mexico, operating expense accounted for 12.6%
of revenues, compared to 11.9% in the fourth quarter of 2019 and
12.5% in the first quarter of 2019. The sequential increase
was primarily due to an increase in shipping
costs as a percentage of total revenue associated with a
higher percentage of shipments to overseas market in the
first quarter of 2020.
Interest Expense, Net
Net interest expense in the first quarter of 2020 was
RMB108.6 million (US$15.3 million), an increase of 29.6% from
RMB83.8 million in the fourth
quarter of 2019 and an increase of 13.0% from RMB96.1 million in the first quarter of
2019. The sequential increase was mainly due to an increase in
interest expense associated with discounted notes receivables in
the first quarter of 2020. The year-over-year increase was mainly
due to (i) an increase in borrowings, (ii) the cessation of
interest capitalization on certain completed solar projects, and
(iii) issuance of additional convertible senior notes in
May 2019.
Exchange (Loss)/Gain and Change in Fair Value
of Foreign Exchange Derivatives
The Company recorded a net exchange loss (including change
in fair value of foreign exchange derivatives) of RMB106.8 million (US$15.1 million) in the first quarter of
2020, compared to a net exchange gain of RMB77.9 million in the fourth quarter of
2019 and a net exchange loss of RMB62.9
million in the first quarter of 2019. With the rapid
increase in overseas orders, the Company increased its foreign
currency hedge ratio to hedge against anticipated cash flow
denominated in U.S. dollars over the next six months. The
Company recorded a loss arising from foreign exchange
forward contracts associated with the appreciation of the
U.S. dollars against the RMB in the first quarter of 2020.
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 RMB78.9 million (US$11.1 million) in the first quarter of
2020, compared to a gain of RMB24.5 million in the fourth quarter of
2019. The loss was primarily due to a decrease
in long-term interest rates in the first quarter of
2020. The Company did not elect to use hedge accounting for
any of its derivatives.
Change in Fair Value of Convertible Senior Notes and Call
Option
The Company issued US$85.0 million of 4.5% convertible senior
notes due 2024 (the "Notes") in May
2019 and has elected to measure the Notes at fair value. The
Company recognized a gain from a change in fair value of the Notes
of RMB166.2 million
(US$23.5 million) in the first
quarter of 2020, compared to a loss of RMB152.7 million in the fourth quarter of
2019. The change was primarily due to a decrease in
the Company's stock price in the first quarter of 2020.
Concurrent with the issuance of the Notes in May 2019, the Company entered into a call option
transaction with an affiliate of Credit Suisse Securities
(USA) LLC. The Company accounted
for the call option transaction as freestanding derivative assets
in its consolidated balance sheets, which is marked to market
during each reporting period. The Company recorded a loss from a
change in fair value of the call option of RMB100.2 million (US$14.1
million) in the first quarter of 2020, compared to a
gain of RMB85.6 million in the
fourth quarter of 2019. The change was primarily due to a
decrease in the Company's stock price in the first quarter of
2020.
Equity in (Loss)/Gain 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 RMB101.5 million
(US$14.3 million) in the first
quarter of 2020, compared with a gain of RMB31.8 million in the fourth quarter of
2019 and a loss of RMB23.7 million in
the first quarter of 2019. The loss primarily arose from
change in fair value of interest rate swap agreements purchased by
Sweihan PV Power Company P.J.S.C. due to a decrease in
long-term interest rates in the first quarter of
2020. Hedge accounting was not applied for the derivative.
Income Tax (Expenses)/Benefit
The Company recorded an income tax expense of RMB109.5 million (US$15.5
million) in the first quarter of 2020, compared with an
income tax expense of RMB221.0
million in the fourth quarter of 2019 and an income tax
benefit of RMB4.3 million in the
first quarter of 2019. The sequential decrease was mainly because
(i) a JinkoSolar's subsidiary turned a profit in 2019 and utilized
corresponding deferred tax assets recognized for tax loss
carryforward, and (ii) JinkoSolar's subsidiaries in U.S. with
higher income tax rate generated higher profits in the fourth
quarter of 2019 compared to the first quarter of 2020.
Net Income and Earnings per Share
Net income attributable to the Company's ordinary shareholders
was RMB282.4 million (US$39.9 million) in the first quarter of 2020,
compared with RMB369.5 million
in the fourth quarter of 2019 and RMB40.2
million in the first quarter of 2019.
Basic and diluted earnings per ordinary share
were RMB1.58 (US$0.22) and RMB0.67 (US$0.09),
respectively, during the first quarter of 2020. This translates
into basic and diluted earnings per ADS of RMB6.32 (US$0.89) and RMB2.67 (US$0.38), respectively.
Non-GAAP net income attributable to the Company's ordinary
shareholders in the first quarter of 2020 was RMB227.5 million (US$32.1 million), compared with RMB432.2 million in the fourth quarter of
2019 and RMB33.3 million in the first
quarter of 2019.
Non-GAAP basic and diluted earnings per ordinary share
were RMB1.27 (US$0.18) and RMB1.15 (US$0.16), respectively, during the
first quarter of 2020. This translates into non-GAAP basic and
diluted earnings per ADS of RMB5.09 (US$0.72)
and RMB4.59 (US$0.65),
respectively.
Financial Position
As of March 31, 2020, the Company
had RMB4.74 billion
(US$669.5 million) in cash and cash
equivalents and restricted cash, compared with RMB6.23 billion as of December 31,
2019.
As of March 31, 2020, the
Company's accounts receivables due from third parties were
RMB5.31 billion (US$750.3 million), compared with RMB5.27 billion as of December 31,
2019.
As of March 31, 2020, the
Company's inventories were RMB7.15 billion (US$1.01 billion), compared with RMB5.82 billion as of December 31,
2019.
As of March 31, 2020, the
Company's total interest-bearing debts were RMB12.79 billion (US$1.81 billion), of which RMB1.15 billion (US$162.3
million) was related to the Company's overseas downstream
solar projects, compared with RMB13.41 billion, of which RMB2.05 billion was related to the Company's
overseas downstream solar projects as of December 31,
2019. The decrease of interest-bearing debts was mainly due to the
disposal of two solar power plants in Mexico.
First Quarter 2020 Operational Highlights
Solar Module Shipments
Total solar module shipments in the first quarter of 2020 were
3,411 MW.
Solar Products Production Capacity
As of March 31, 2020, the
Company's in-house annual mono wafer, solar cell and solar
module production capacity was 17.5 GW, [1]10.6 GW (9.8
GW for PERC cells and 800 MW for N type cells) and 16 GW,
respectively.
Note 1:
|
In addition to the mono wafer,
our multi wafer production capacity was 3.5 GW as of March 31,
2020.
|
Operations and Business Outlook
The guidance for total module shipment and capacity expansion of
the Company remain unchanged. The Company expects that the COVID-19
outbreak will lead to a significant decrease in global demand,
causing the decrease in the market price of solar modules.
Second Quarter and Full Year 2020 Guidance
The Company's business outlook is based on management's current
views and estimates with respect to market conditions, production
capacity, the Company's order book and the global economic
environment. This outlook is subject to uncertainty on final
customer demand and sale schedules. Management's views and
estimates are subject to change without notice.
For the second quarter of 2020, the Company expects total solar
module shipments to be in the range of 4.2 GW to 4.5 GW.
Total revenue for the second quarter is expected to be in the range
of US$1.10 billion to
US$1.18 billion. Gross margin for the
first quarter is expected to be between 16% and 18%.
For full year 2020, the Company estimates total solar module
shipments to be in the range of 18 GW to 20 GW.
Solar Products Production Capacity
JinkoSolar expects its annual mono wafer, solar cell and solar
module production capacity to reach 20.0 GW, 11.0 GW
(including 900 MW N-type cells) and 25.0 GW, respectively, by the
end of 2020.
Recent Business Developments
- In February 2020, JinkoSolar was
awarded the "Top Brand PV Europe Seal 2020" by EuPD Research, an
internationally recognized research institute, for the second
consecutive year.
- In March 2020, JinkoSolar's Tiger
module hit 1GW in orders during the first three months after its
launch.
- In March 2020, JinkoSolar's new
N-type all black solar panel specifically developed for home
installation generate a maximum output of 405 Wp and hit a 21.22%
efficiency, enabling homeowners to fit more power capacity on
rooftops than ever before.
- In March 2020, JinkoSolar's Board
of Directors approved a share repurchase program which authorizes
the Company to repurchase up to US$100
million of its ordinary shares represented by American
depositary shares within twelve months.
- In March 2020, Mr. Xiande Li, Chairman of JinkoSolar's Board of
Directors, completed purchase of 200,000 JinkoSolar's American
depositary shares.
- In March 2020, JinkoSolar donated
one million face masks and other protective equipment items to
several countries severely affected by COVID-19 including
Italy, Spain, Germany, France, Britain, Switzerland, South
Korea, the Netherlands,
Austria, Belgium, Turkey, Portugal and Norway.
- In April 2020, Jinko Solar
Australia Holdings Co. Pty Ltd, a subsidiary of JinkoSolar, signed
a one-year AUD37 million credit line agreement with the National
Australia Bank.
- In April 2020, JinkoSolar
announced favorable developments in patent litigation brought by
Hanwha Q CELLS.
- In May 2020, JinkoSolar
officially launched the 2020 flagship Tiger Pro module series.
- In May 2020, JinkoSolar was
ranked as a Top Performer for the sixth consecutive year in the
2020 PV Module Reliability Scorecard published by PV Evolution Labs
in partnership with DNV GL.
Conference Call Information
JinkoSolar's management will host an earnings conference call on
Monday, June 15, 2020 at 8:00 a.m. U.S. Eastern Time (8:00 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:
|
55108006#
|
|
|
|
|
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, June 22, 2020. The dial-in
details for the replay are as follows:
International:
|
+61 2 8325
2405
|
|
U.S.:
|
+1 646 982
0473
|
|
Passcode:
|
319334664#
|
|
|
|
|
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 largest and most innovative
solar module manufacturers in the world. 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 17.5 GW for mono
wafers, 10.6 GW for solar cells, and 16 GW for solar modules, as of
March 31, 2020.
JinkoSolar has over 15,000 employees across its 7 productions
facilities globally, 14 overseas subsidiaries in Japan, South
Korea, Vietnam,
India, Turkey, Germany, Italy, Switzerland, United States, Mexico, Brazil, Chile
and Australia, and global sales
teams in China, United Kingdom, France, Spain, Bulgaria, Greece, Ukraine, Jordan, Saudi
Arabia, Tunisia, Morocco, Kenya, South
Africa, Costa Rica,
Colombia, Panama, Kazakhstan, Malaysia, Myanmar, Sri
Lanka, Thailand,
Vietnam, Poland 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, change in fair
value of convertible senior notes and call option, interest
expenses of convertible senior notes and call option, exchange
(gain)/loss on the convertible senior notes and call option, and
stock-based compensation (benefit)/expense; 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 the expenses relating to issuance cost of
convertible senior notes, change in fair value of convertible
senior notes and call option, interest expenses of convertible
senior notes and call option, exchange gain on the convertible
senior notes and call option, and stock-based compensation. As the
Non-GAAP net income is adjusted to exclude the change in fair value
of call option, the dilutive impact of call option, if any, is also
excluded from the denominator for the calculation of Non-GAAP
earnings per share and non-GAAP earnings per ADS.
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.
Impact of the Recently Adopted Major Accounting
Pronouncement
The Company adopted the update of ASU No. 2016-13, Financial
Instruments – Credit Losses (Topic 326): "Measurement of Credit
Losses on Financial Instruments" on January
1, 2020.
Upon adoption of ASC 326 on January 1,
2020, the Company used the modified retrospective transition
method through a RMB6.6 million
cumulative-effect increase to retained earnings, among which
RMB30.9 million was related to the
decrease of allowance for accounts receivables-third parties,
RMB15.0 million was related to the
increase of allowance for accounts receivables- related parties and
RMB9.3 million was related to the
increase of allowance for other receivables and other
current/non-current assets. The adoption of the new guidance did
not have a material impact to the Company's consolidated financial
statements.
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 March 31, 2020, which was
RMB7.0808 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:
Ripple
Zhang
JinkoSolar Holding Co., Ltd.
Tel: +86 21-5183-3105
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)
|
|
For the quarter
ended
|
|
March 31,
2019
|
|
December 31,
2019
|
|
March 31,
2020
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
Revenues from
third parties
|
5,677,227
|
|
9,528,920
|
|
8,431,213
|
|
1,190,715
|
|
|
|
|
|
|
|
|
Revenues from
related parties
|
144,821
|
|
538
|
|
52,710
|
|
7,444
|
|
|
|
|
|
|
|
|
Total
revenues
|
5,822,048
|
|
9,529,458
|
|
8,483,923
|
|
1,198,159
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
(4,857,711)
|
|
(7,799,733)
|
|
(6,827,045)
|
|
(964,163)
|
|
|
|
|
|
|
|
|
Gross
profit
|
964,337
|
|
1,729,725
|
|
1,656,878
|
|
233,996
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling
and marketing
|
(459,314)
|
|
(632,871)
|
|
(613,821)
|
|
(86,688)
|
General
and administrative
|
(191,902)
|
|
(342,048)
|
|
(238,594)
|
|
(33,696)
|
Research
and development
|
(77,378)
|
|
(91,740)
|
|
(71,784)
|
|
(10,138)
|
Impairment of long-lived assets
|
-
|
|
(68,262)
|
|
-
|
|
-
|
Total operating
expenses
|
(728,594)
|
|
(1,134,921)
|
|
(924,199)
|
|
(130,522)
|
|
|
|
|
|
|
|
|
Income from
operations
|
235,743
|
|
594,804
|
|
732,679
|
|
103,474
|
Interest
expenses, net
|
(96,110)
|
|
(83,826)
|
|
(108,613)
|
|
(15,339)
|
Subsidy
income
|
4,741
|
|
14,366
|
|
5,061
|
|
716
|
Exchange
(loss)/gain
|
(80,980)
|
|
(14,003)
|
|
10,951
|
|
1,547
|
Change in fair
value of interest rate swap
|
(30,199)
|
|
24,466
|
|
(78,878)
|
|
(11,140)
|
Change in fair
value of foreign exchange
derivatives
|
18,114
|
|
91,889
|
|
(117,787)
|
|
(16,635)
|
Change in fair
value of convertible senior
notes and call option
|
-
|
|
(67,119)
|
|
65,990
|
|
9,320
|
Other
income/(expense), net
|
7,398
|
|
1,432
|
|
(2,187)
|
|
(309)
|
Gain on
disposal of subsidiaries
|
-
|
|
19,935
|
|
-
|
|
-
|
Income before
income taxes
|
58,707
|
|
581,944
|
|
507,216
|
|
71,634
|
Income tax
benefit/(expense)
|
4,250
|
|
(220,993)
|
|
(109,520)
|
|
(15,467)
|
Equity in
(loss)/gain of affiliated companies
|
(23,709)
|
|
31,780
|
|
(101,527)
|
|
(14,338)
|
Net
income
|
39,248
|
|
392,731
|
|
296,169
|
|
41,829
|
Less: Net
(loss)/income attributable to
non-controlling
interests
|
(939)
|
|
23,225
|
|
13,728
|
|
1,939
|
Net income
attributable to JinkoSolar
Holding Co., Ltd.'s ordinary shareholders
|
40,187
|
|
369,506
|
|
282,441
|
|
39,890
|
|
|
|
|
|
|
|
|
Net income
attributable to JinkoSolar
Holding Co., Ltd.'s
ordinary shareholders per share:
|
|
|
|
|
|
|
|
Basic
|
0.26
|
|
2.08
|
|
1.58
|
|
0.22
|
Diluted
|
0.25
|
|
1.67
|
|
0.67
|
|
0.09
|
|
|
|
|
|
|
|
|
Net income
attributable to JinkoSolar
Holding Co., Ltd.'s
ordinary shareholders per ADS:
|
|
|
|
|
|
|
|
Basic
|
1.02
|
|
8.32
|
|
6.32
|
|
0.89
|
Diluted
|
1.02
|
|
6.68
|
|
2.67
|
|
0.38
|
|
|
|
|
|
|
|
|
Weighted
average ordinary shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
156,888,381
|
|
177,524,685
|
|
178,743,903
|
|
178,743,903
|
Diluted
|
158,017,104
|
|
171,509,296
|
|
198,081,276
|
|
198,081,276
|
|
|
|
|
|
|
|
|
Weighted
average ADS outstanding:
|
|
|
|
|
|
|
|
Basic
|
39,222,095
|
|
44,381,171
|
|
44,685,976
|
|
44,685,976
|
Diluted
|
39,504,276
|
|
42,877,324
|
|
49,520,319
|
|
49,520,319
|
|
|
|
|
|
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
|
|
|
|
|
|
|
|
|
Net
income
|
39,248
|
|
392,731
|
|
296,169
|
|
41,829
|
Other
comprehensive income:
|
|
|
|
|
|
|
|
-Foreign
currency translation
adjustments
|
(17,459)
|
|
(21,970)
|
|
45,040
|
|
6,361
|
-Change
in the instrument-specific
credit risk
|
-
|
|
(26,579)
|
|
39,202
|
|
5,536
|
Comprehensive
income
|
21,789
|
|
344,182
|
|
380,411
|
|
53,726
|
Less:
Comprehensive (loss)/income
attributable to non-controlling interests
|
(939)
|
|
23,225
|
|
13,728
|
|
1,939
|
Comprehensive
income attributable to
JinkoSolar Holding Co., Ltd.'s ordinary
shareholders
|
22,728
|
|
320,957
|
|
366,683
|
|
51,787
|
|
|
|
|
|
|
|
|
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
|
40,187
|
|
369,506
|
|
282,441
|
|
39,890
|
|
|
|
|
|
|
|
|
Change in fair
value of convertible senior
notes and call option
|
-
|
|
67,119
|
|
(65,990)
|
|
(9,320)
|
|
|
|
|
|
|
|
|
Net interest
expenses of convertible
senior notes and call option
|
-
|
|
6,281
|
|
6,128
|
|
865
|
|
|
|
|
|
|
|
|
Exchange
(gain)/loss on convertible
senior notes and call option
|
-
|
|
(4,112)
|
|
4,664
|
|
659
|
|
|
|
|
|
|
|
|
Stock-based
compensation
(benefit)/expense
|
(6,924)
|
|
(6,630)
|
|
249
|
|
35
|
|
|
|
|
|
|
|
|
Non-GAAP net
income attributable to
ordinary shareholders
|
33,263
|
|
432,164
|
|
227,492
|
|
32,129
|
|
|
|
|
|
|
|
|
Non-GAAP
earnings per share
attributable to ordinary shareholders -
|
|
|
|
|
|
|
|
Basic
|
0.21
|
|
2.43
|
|
1.27
|
|
0.18
|
Diluted
|
0.21
|
|
2.43
|
|
1.15
|
|
0.16
|
|
|
|
|
|
|
|
|
Non-GAAP
earnings per ADS attributable
to ordinary shareholders -
|
|
|
|
|
|
|
|
Basic
|
0.85
|
|
9.74
|
|
5.09
|
|
0.72
|
Diluted
|
0.84
|
|
9.74
|
|
4.59
|
|
0.65
|
|
|
|
|
|
|
|
|
Non-GAAP
weighted average ordinary
shares outstanding
|
|
|
|
|
|
|
|
Basic
|
156,888,381
|
|
177,524,685
|
|
178,743,903
|
|
178,743,903
|
Diluted
|
158,017,104
|
|
177,524,685
|
|
198,081,276
|
|
198,081,276
|
|
|
|
|
|
|
|
|
Non-GAAP
weighted average ADS
outstanding
|
|
|
|
|
|
|
|
Basic
|
39,222,095
|
|
44,381,171
|
|
44,685,976
|
|
44,685,976
|
Diluted
|
39,504,276
|
|
44,381,171
|
|
49,520,319
|
|
49,520,319
|
JINKOSOLAR HOLDING
CO., LTD.
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
|
December 31,
2019
|
|
March 31,
2020
|
|
RMB
|
|
RMB
|
|
USD
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
5,653,854
|
|
3,947,853
|
|
557,543
|
Restricted
cash
|
576,546
|
|
793,056
|
|
112,001
|
Restricted
short-term investments
|
6,930,502
|
|
7,264,341
|
|
1,025,921
|
Accounts
receivable, net - related parties
|
520,504
|
|
554,836
|
|
78,358
|
Accounts
receivable, net - third parties
|
5,266,351
|
|
5,312,745
|
|
750,303
|
Notes
receivable, net - related parties
|
18,629
|
|
18,629
|
|
2,631
|
Notes
receivable, net - third parties
|
1,529,801
|
|
1,602,390
|
|
226,301
|
Advances to
suppliers, net - third parties
|
2,522,373
|
|
2,280,476
|
|
322,065
|
Inventories,
net
|
5,818,789
|
|
7,147,762
|
|
1,009,457
|
Forward
contract receivables
|
52,281
|
|
-
|
|
-
|
Prepayments
and other current assets, net - related parties
|
54,318
|
|
52,442
|
|
7,406
|
Prepayments
and other current assets, net
|
1,573,482
|
|
1,816,529
|
|
256,542
|
Held-for-sale
assets
|
1,170,818
|
|
-
|
|
-
|
Total current
assets
|
31,688,248
|
|
30,791,059
|
|
4,348,528
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Restricted
cash
|
531,158
|
|
643,549
|
|
90,886
|
Accounts
receivable, net - third parties
|
-
|
|
28,848
|
|
4,074
|
Project
Assets
|
798,243
|
|
818,041
|
|
115,529
|
Long-term
investments
|
278,021
|
|
159,710
|
|
22,555
|
Property,
plant and equipment, net
|
10,208,205
|
|
10,657,193
|
|
1,505,083
|
Land use
rights, net
|
597,922
|
|
668,205
|
|
94,369
|
Intangible
assets, net
|
36,395
|
|
37,167
|
|
5,249
|
Financing
lease right-of-use assets, net
|
1,259,713
|
|
1,219,385
|
|
172,210
|
Operating
lease right-of-use assets, net
|
317,904
|
|
284,722
|
|
40,210
|
Deferred tax
assets
|
271,286
|
|
271,286
|
|
38,313
|
Call
Option-concurrent with issuance of convertible
senior notes
|
294,178
|
|
197,276
|
|
27,861
|
Other assets,
net - related parties
|
96,753
|
|
98,048
|
|
13,847
|
Other assets,
net - third parties
|
1,466,692
|
|
1,359,510
|
|
192,000
|
Total non-current
assets
|
16,156,470
|
|
16,442,940
|
|
2,322,186
|
|
|
|
|
|
|
Total
assets
|
47,844,718
|
|
47,233,999
|
|
6,670,714
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable - related parties
|
36,310
|
|
-
|
|
-
|
Accounts
payable - third parties
|
4,952,630
|
|
5,465,796
|
|
771,918
|
Notes payable
- third parties
|
7,518,570
|
|
7,489,024
|
|
1,057,652
|
Accrued
payroll and welfare expenses
|
879,465
|
|
780,786
|
|
110,268
|
Advances from
related parties
|
749
|
|
752
|
|
106
|
Advances
from third parties
|
4,350,380
|
|
3,507,328
|
|
495,329
|
Income tax
payable
|
117,422
|
|
123,957
|
|
17,506
|
Other payables
and accruals
|
3,055,928
|
|
3,195,399
|
|
451,279
|
Other payables
due to related parties
|
13,127
|
|
13,381
|
|
1,890
|
Forward
contract payables
|
3,857
|
|
90,564
|
|
12,790
|
Financing
lease liabilities - current
|
227,613
|
|
243,253
|
|
34,354
|
Operating
lease liabilities - current
|
40,043
|
|
38,636
|
|
5,456
|
Short-term
borrowings from third parties,
including current portion of long-term
bank
borrowings
|
9,047,250
|
|
9,701,037
|
|
1,370,048
|
Guarantee
liabilities to related parties
|
25,688
|
|
23,776
|
|
3,358
|
Held-for-sale
liabilities
|
1,008,196
|
|
-
|
|
-
|
Total current
liabilities
|
31,277,228
|
|
30,673,689
|
|
4,331,954
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Long-term
borrowings
|
1,586,187
|
|
1,521,730
|
|
214,909
|
Convertible
senior notes
|
728,216
|
|
532,111
|
|
75,148
|
Accrued
warranty costs - non current
|
651,968
|
|
671,556
|
|
94,842
|
Financing
lease liabilities
|
583,491
|
|
502,334
|
|
70,943
|
Operating
lease liabilities
|
279,534
|
|
246,434
|
|
34,803
|
Deferred tax
liability
|
250,734
|
|
250,734
|
|
35,410
|
Guarantee
liabilities to related parties
- non current
|
46,332
|
|
44,409
|
|
6,272
|
Total non-current
liabilities
|
4,126,462
|
|
3,769,308
|
|
532,327
|
|
|
|
|
|
|
Total
liabilities
|
35,403,690
|
|
34,442,997
|
|
4,864,281
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
Ordinary shares
(US$0.00002 par value, 500,000,000 shares
authorized, 180,653,497 and 179,430,857 shares issued as of
December 31, 2019 and March 31, 2020, respectively)
|
25
|
|
25
|
|
4
|
Additional paid-in
capital
|
4,582,850
|
|
4,583,099
|
|
647,257
|
Statutory
reserves
|
689,707
|
|
689,707
|
|
97,405
|
Accumulated other
comprehensive income
|
62,952
|
|
147,194
|
|
20,787
|
Treasury stock, at
cost; 1,723,200 and 2,945,840 ordinary
shares as of December 31, 2019 and March 31, 2020,
respectively
|
(13,876)
|
|
(43,170)
|
|
(6,097)
|
Accumulated retained
earnings
|
3,981,661
|
|
4,270,710
|
|
603,139
|
|
|
|
|
|
|
Total JinkoSolar
Holding Co., Ltd. shareholders' equity
|
9,303,319
|
|
9,647,565
|
|
1,362,495
|
|
|
|
|
|
|
Non-controlling
interests
|
3,137,709
|
|
3,143,437
|
|
443,938
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
47,844,718
|
|
47,233,999
|
|
6,670,714
|
View original
content:http://www.prnewswire.com/news-releases/jinkosolar-announces-first-quarter-2020-financial-results-301076709.html
SOURCE JinkoSolar Holding Co., Ltd.