SHANGRAO, China, Sept. 23, 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
second quarter ended June 30,
2020.
Strategic Business Updates
- Module shipments in the second quarter increased significantly
compared with the first quarter, despite the negative impact caused
by the global pandemic.
- Large-area N-Type monocrystalline silicon solar cell reached a
record high efficiency of 24.79%.
- Demand and deployment of large-size modules exceeded
expectations. The company recently launched its Tiger Pro N-type
large-size module products with maximum power output of up to 610
W.
- Industry consolidation is accelerating due to increased
competition in a challenging economic environment. Module shipments
of the top five module manufacturers are expected to account for
65% to 70% of the total shipments in the industry this year.
- Announced the plan to list the Company's principal operating
subsidiary Jiangxi Jinko on the Shanghai Stock Exchange's Sci-Tech
innovation board, or the STAR Market.
Second Quarter 2020 Operational and Financial
Highlights
- Total solar module shipments were 4,469 megawatts ("MW"),
within JinkoSolar's guidance range of 4.2 GW to 4.5 GW, an increase
of 31.0% from 3,411 MW in the first quarter of 2020 and an increase
of 32.0% from 3,386 MW in the second quarter of 2019.
- Total revenues were RMB8.45
billion (US$1.20 billion),
exceeding JinkoSolar's guidance range of US$1.10 billion to US$1.18
billion; a decrease of 0.4% from the first quarter of 2020
and an increase of 22.2% from the second quarter of 2019.
- Gross margin was 17.9%, within JinkoSolar's guidance range of
16.0% to 18.0%, compared with 19.5% in the first quarter of 2020
and 16.5% in the second quarter of 2019.
- Income from operations was RMB434.7
million (US$61.5 million),
compared with RMB732.7 million in the
first quarter of 2020 and RMB260.3
million in the second quarter of 2019.
- Net income attributable to the Company's ordinary shareholders
was RMB318.0 million (US$45.0 million) in the second quarter of 2020,
compared with RMB282.4 million in the
first quarter of 2020 and RMB125.4
million in the second quarter of 2019.
- Diluted earnings per American depositary share ("ADS") were
RMB6.55 (US$0.93) in the second quarter of 2020.
- Non-GAAP net income attributable to the Company's ordinary
shareholders in the second quarter of 2020 was RMB376.1 million (US$53.2
million), compared with RMB227.5
million in the first quarter of 2020 and RMB202.9 million in the second quarter of
2019.
- Non-GAAP basic and diluted earnings per ADS were RMB8.46 (US$1.20)
in the second quarter of 2020, compared with RMB5.09 and RMB4.59, respectively, in the first quarter of
2020 and RMB4.87 for both in the
second quarter of 2019.
Mr. Kangping Chen, JinkoSolar's
Chief Executive Officer commented, "JinkoSolar delivered a strong
quarter with total revenue exceeding guidance. Despite the tough
economic environment around the world, total solar module shipments
and gross margin for the quarter were all within our guidance
range. Module shipments hit a new high of 4,469 MW, an increase of
31.0% sequentially and 32.0% year-over-year. Total revenues during
the quarter were US$1.20 billion, an
increase of 16.0% (excluding the impact from disposal of the solar
power plants in the first quarter of 2020) sequentially and 22.2%
year-over-year, while gross profit was US$214.1 million. We expect orders for the third
and fourth quarters to increase, with total solar module shipments
expected to be in the range between 5 GW to 5.3 GW for the third
quarter, and our guidance for total shipments for the full year
2020 remains unchanged at 18GW to 20 GW."
"Solar demand decreased during the quarter due to the economic
slowdown, triggering a drop in module prices. Many upstream
manufacturing companies were forced to reduce inventory and
companies lacking product differentiation and cost flexibility
struggled to remain competitive. The market continues to
consolidate due to the challenging economic environment and strong
competition within the industry, while the production capacity and
infrastructure of integrated manufacturers remain resilient to
risks and price fluctuations. All of the above has enabled a few
key players, including JinkoSolar, to increase global market share.
Overall, the combined shipment volumes of the top five solar module
manufacturers are expected to account for 65% to 70% of the
industry for the year."
"More than ever, technology is the major differentiating factor
giving companies with integrated applications a clear advantage.
Recently, our large-area N-type monocrystalline silicon solar cells
reached a conversion efficiency of 24.79%, setting a new world
record. This year, the popularity of large-sized bifacial modules
exceeded our expectations and demonstrated that further reductions
in the levelized cost of energy for solar remains the core
distinction among clean energies. Additionally, we expect new
technologies in energy storage to prompt the sector into a new era
of rapid development."
"As economies have started to rebound in many markets, we
believe global demand will eventually accelerate and we are well
positioned to benefit from the momentum. Earlier this year, the
shortage of supply in the Chinese market drove up prices along the
supply chain, but prices have stabilized since then and we expect
strong market demand to continue until the end of the year. With
our strong R&D platform, expanding capacity and cost
leadership, we believe we are well positioned to capitalize on the
strong potential of solar energy as governments increasingly focus
on clean energy in the wake of the pandemic and growing climate
change challenges."
"This week, we announced our plan to list our principal
operating subsidiary Jiangxi Jinko on the Shanghai Stock Exchange's
Sci-Tech innovation board, or the STAR Market. We are committed to
maintaining the New York Stock Exchange listing for JinkoSolar. We
believe the additional listing of Jiangxi Jinko on the STAR Market
will raise our profile with investors both in China and globally and provide us with
additional growth opportunities in the future."
Second Quarter 2020 Financial Results
Total Revenues
Total revenues in the second quarter of 2020 were RMB8.45 billion (US$1.20
billion), a decrease of 0.4% from RMB8.48 billion in the first quarter of 2020 and
an increase of 22.2% from RMB6.91
billion in the second quarter of 2019. Excluding the impact
from the disposal of two solar power plants in Mexico in the first quarter of 2020, revenue
increased by 16.0% from RMB7.29
billion in the first quarter of 2020. The sequential
increase (excluding the impact from disposal of the solar power
plants in the first quarter of 2020) was mainly attributable to an
increase in the shipment of solar modules partially offset by a
decline in the average selling price of solar modules. 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 second quarter of 2020 was RMB1.51 billion (US$214.1
million), compared with RMB1.66
billion in the first quarter of 2020 (or RMB1.44 billion if excluding the impact from the
disposal of two solar power plants in Mexico) and RMB1.14
billion in the second quarter of 2019. The sequential
increase was mainly attributable to an increase in the shipment of
solar modules partially offset by a decline in the average selling
price 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 17.9% in the second quarter of 2020, compared
with 19.5% in the first quarter of 2020 (or 19.7% if excluding the
impact from the disposal of two solar power plants in Mexico) and 16.5% in the second quarter of
2019.The sequential decrease was mainly attributable to a decline
in the average selling price of solar modules due to the decrease
of global demand of solar modules. The year-over-year increase was
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 second quarter of 2020 was
RMB434.7 million (US$61.5 million), compared with RMB732.7 million in the first quarter of 2020
(including RMB213.2 million from the
disposal of two solar power plants in Mexico) and RMB260.3
million in the second quarter of 2019.
Operating margin was 5.1% in the second quarter of 2020,
compared with 8.6% in the first quarter of 2020 (or 7.1% if
excluding the impact from the disposal of two solar power plants in
Mexico) and 3.8% in the second
quarter of 2019.
Total operating expenses in the second quarter of 2020 were
RMB1.08 billion (US$152.6 million), an increase of 16.7% from
RMB924.2 million in the first quarter
of 2020 and an increase of 22.0% from RMB883.6 million in the second quarter of 2019.
The sequential increase was mainly due to (i) an increase in
warranty cost in relation to the increase in the shipment of solar
modules. and (ii) an increase in disposal loss on property, plant
and equipment due to the automation upgrade of the Company. The
year-over-year increase was mainly due to (i) an increase in
shipping costs and warranty cost in relation to the increase in the
shipment of solar modules and (ii) an increase in disposal loss on
property, plant and equipment.
Total operating expenses accounted for 12.8% of total revenues
in the second quarter of 2020, compared to 10.9% in the first
quarter of 2020 (or 12.6% if excluding the impact from the disposal
of two solar power plants in Mexico) and 12.8% in the second quarter of
2019.
Interest Expense, Net
Net interest expense in the second quarter of 2020 was
RMB106.2 million (US$15.0 million), a decrease of 2.2% from
RMB108.6 million in the first quarter
of 2020 and a decrease of 9.0% from RMB116.8
million in the second quarter of 2019. The sequential and
year-over-year decreases were mainly due to an increase in interest
income partially offset by an increase in interest expense with the
increase of interest-bearing debts.
Exchange Gain and Change in Fair Value of
Foreign Exchange Derivatives
The Company recorded a net exchange gain (including change in
fair value of foreign exchange derivatives) of RMB69.7 million (US$9.9
million) in the second quarter of 2020, compared to a net
exchange loss of RMB106.8 million in
the first quarter of 2020 and a net exchange gain of RMB45.9 million in the second quarter of
2019.
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. After the disposal of two solar power projects in
Mexico in the first quarter of
2020, there was no change in fair value of interest rate swap
recognized in the second quarter of 2020.
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 loss from a
change in fair value of the Notes of RMB89.2
million (US$12.6 million) in
the second quarter of 2020, compared to a gain of RMB166.2 million in the first quarter of 2020.
The change was primarily due to an increase in the Company's
stock price in the second 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 gain from a
change in fair value of the call option of RMB38.0 million (US$5.4
million) in the second quarter of 2020, compared to a loss
of RMB100.2 million in the first
quarter of 2020. The change was primarily due to an increase in the
Company's stock price in the second 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 gain of affiliated companies of RMB4.2 million (US$0.6
million) in the second quarter of 2020, compared with a loss
of RMB101.5 million in the first
quarter of 2020 and a loss of RMB28.6
million in the second quarter of 2019. The gain primarily
arose from revenue generated from operations in the second quarter
of 2020. The sequential change was mainly due to the decreased
losses arose from change in fair value of interest rate swap
agreements purchased by Sweihan PV Power Company P.J.S.C. as the
long-term interest rates remains stable in the second quarter of
2020. Hedge accounting was not applied for the derivative.
Income Tax (Expenses)/Benefit
The Company recorded an income tax expense of RMB22.8 million (US$3.2
million) in the second quarter of 2020, compared with an
income tax expense of RMB109.5
million in the first quarter of 2020 and an income tax
benefit of RMB55.9 million in the
second quarter of 2019. The sequential decrease was mainly due to
additional 2019 income tax deduction for R&D costs approved by
the local tax bureau in the second quarter of 2020. The
year-over-year change was mainly due to higher profit generated
compared to the second quarter of 2019.
Net Income and Earnings per Share
Net income attributable to the Company's ordinary shareholders
was RMB318.0 million (US$45.0 million) in the second quarter of 2020,
compared with RMB282.4 million in the
first quarter of 2020 and RMB125.4
million in the second quarter of 2019.
Basic and diluted earnings per ordinary share were RMB1.79 (US$0.25)
and RMB1.64 (US$0.23), respectively, during the second
quarter of 2020. This translates into basic and diluted earnings
per ADS of RMB7.16 (US$1.01) and RMB6.55 (US$0.93),
respectively.
Non-GAAP net income attributable to the Company's ordinary
shareholders in the second quarter of 2020 was RMB376.1 million (US$53.2
million), compared with RMB227.5
million in the first quarter of 2020 and RMB202.9 million in the second quarter of
2019.
Non-GAAP basic and diluted earnings per ordinary share were
RMB2.12 (US$0.30), during the second quarter of 2020.
This translates into non-GAAP basic and diluted earnings per ADS of
RMB8.46 (US$1.20).
Financial Position
As of June 30, 2020, the Company
had RMB6.85 billion (US$969.6 million) in cash and cash equivalents
and restricted cash, compared with RMB4.74
billion as of March 31,
2020.
As of June 30, 2020, the Company's
accounts receivables due from third parties were RMB5.90 billion (US$834.6
million), compared with RMB5.31
billion as of March 31,
2020.
As of June 30, 2020, the Company's
inventories were RMB6.89 billion
(US$975.1 million), compared with
RMB7.15 billion as of March 31, 2020.
As of June 30, 2020, the Company's
total interest-bearing debts were RMB16.5
billion (US$2.34 billion), of
which RMB908.6 million (US$128.6 million) was related to the Company's
overseas downstream solar projects, compared with RMB12.79 billion, of which RMB1.15 billion was related to the Company's
overseas downstream solar projects as of March 31, 2020.
Second Quarter 2020 Operational Highlights
Solar Module Shipments
Total solar module shipments in the second quarter of 2020 were
4,469 MW.
Solar Products Production Capacity
As of June 30, 2020, the Company's
in-house annual mono wafer, solar cell and solar module production
capacity was 20 GW, [1] 11GW (10.2 GW for PERC cells and
800 MW for N type cells) and 25 GW, respectively.
Note 1:
In addition to the
mono wafer, our multi wafer production capacity was 3.5 GW as of
June 30, 2020[1]
|
Operations and Business Outlook
Strong market demand is expected to continue until the end of
the year. COVID-19 has negatively impacted demand and caused
substantial challenges across the supply chain, which is expected
to further accelerate market consolidation within the industry. The
penetration of large-size modules exceed expectations.
Third 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 third quarter of 2020, the Company expects total solar
module shipments to be in the range of 5.0 GW to 5.3 GW. Total
revenue for the third quarter is expected to be in the range of
US$1.22 billion to US$1.30 billion. Gross margin for the third
quarter is expected to be between 17% and 19%.
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 GW, 11 GW (including 800 MW
N-type cells) and 30 GW, respectively, by the end of 2020.
Recent Business Developments
- In June 2020, JinkoSolar's
innovative Tiger Pro Series of high-efficiency modules received the
world's first IEC 61701 Ed. 3 (FDIS) certification for salt mist
corrosion test issued by TÜV Nord AG, an independent provider of
technical services for testing, inspection, certification,
consultation and training.
- In June 2020, United States
International Trade Commission ("ITC") issued a favorable final
determination concluding that JinkoSolar's products do not infringe
a patent asserted by Hanwha Q CELLS.
- In June 2020, JinkoSolar
appointed Mr. Ji Shao Guo as Chief
Human Resources Officer.
- In June 2020, JinkoSolar
responded to the Regional Court of Düsseldorf's recent
determination concluding that third-party cell technology contained
in certain JinkoSolar modules, no longer in production, infringes a
patent held by Hanwha Q CELLS.
- In June 2020, JinkoSolar
announced that it will supply 60.9 MW of bifacial modules for the
first industrial hybrid plant in Chile.
- In July 2020, JinkoSolar won the
6th All Quality Matters Award for PV Module Energy Yield Simulation
(Mono Group) at the Solar Congress 2020 organized by TÜV
Rheinland.
- In July 2020, JinkoSolar
announced supply of 126 MW of solar modules for the expansion of an
existing 160 MW solar PV park in Chile.
- In July 2020, the maximum solar
conversion efficiency of JinkoSolar's large-area N-type
monocrystalline silicon solar cells reached 24.79%, and have set a
world record for large-size contact-passivated solar cells.
- In August 2020, JinkoSolar
unveiled its RE100 roadmap by providing details on its approach to
achieve 100% capacity powered by renewables by 2025.
- In August 2020, JinkoSolar
launched its new generation of 610W Tiger Pro high-efficiency
monocrystalline TR solar module and its BIPV solutions, Building
Integrated Photovoltaics product series, which will be unveiled at
SNEC 2020 in Shanghai.
Conference Call Information
JinkoSolar's management will host an earnings conference call on
Wednesday, September 23, 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:
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+852 3027
6500
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U.S. Toll
Free:
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+1
855-824-5644
|
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Passcode:
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55345060
|
|
|
|
|
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, September 30, 2020. The dial-in
details for the replay are as follows:
International:
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+61 2 8325
2405
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U.S.:
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+1 646 982
0473
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Passcode:
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319337163#
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|
|
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 20 GW for mono wafers,
11 GW for solar cells, and 25 GW for solar modules, as of
June 30, 2020.
JinkoSolar has 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 convertible
senior notes and call option:
- Non-GAAP net income is 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)/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 June 30,
2020, which was RMB7.0651 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
Rene Vanguestaine
Christensen
Tel: + 86 178 1749 0483
Email: rvanguestaine@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
|
|
For the six months
ended
|
|
June 30,
2019
|
|
March 31,
2020
|
|
June 30,
2020
|
|
June 30,
2019
|
|
June 30,
2020
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
Revenues from
third parties
|
6,912,301
|
|
8,431,213
|
|
8,448,719
|
|
1,195,839
|
|
12,589,528
|
|
16,879,932
|
|
2,389,199
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
related parties
|
725
|
|
52,710
|
|
1,943
|
|
275
|
|
145,546
|
|
54,653
|
|
7,736
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
6,913,026
|
|
8,483,923
|
|
8,450,662
|
|
1,196,114
|
|
12,735,074
|
|
16,934,585
|
|
2,396,935
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
(5,769,143)
|
|
(6,827,045)
|
|
(6,937,720)
|
|
(981,971)
|
|
(10,626,854)
|
|
(13,764,765)
|
|
(1,948,276)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
1,143,883
|
|
1,656,878
|
|
1,512,942
|
|
214,143
|
|
2,108,220
|
|
3,169,820
|
|
448,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
and marketing
|
(561,959)
|
|
(613,821)
|
|
(709,189)
|
|
(100,379)
|
|
(1,021,273)
|
|
(1,323,010)
|
|
(187,260)
|
General
and administrative
|
(248,376)
|
|
(238,594)
|
|
(294,452)
|
|
(41,677)
|
|
(440,278)
|
|
(533,046)
|
|
(75,448)
|
Research
and development
|
(73,258)
|
|
(71,784)
|
|
(74,643)
|
|
(10,565)
|
|
(150,636)
|
|
(146,427)
|
|
(20,725)
|
Total operating
expenses
|
(883,593)
|
|
(924,199)
|
|
(1,078,284)
|
|
(152,621)
|
|
(1,612,187)
|
|
(2,002,483)
|
|
(283,433)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
260,290
|
|
732,679
|
|
434,658
|
|
61,522
|
|
496,033
|
|
1,167,337
|
|
165,226
|
Interest
expenses, net
|
(116,754)
|
|
(108,613)
|
|
(106,239)
|
|
(15,037)
|
|
(212,864)
|
|
(214,852)
|
|
(30,410)
|
Subsidy
income
|
10,517
|
|
5,061
|
|
14,379
|
|
2,035
|
|
15,258
|
|
19,440
|
|
2,752
|
Exchange
gain
|
87,487
|
|
10,951
|
|
51,616
|
|
7,306
|
|
6,507
|
|
62,567
|
|
8,856
|
Change in fair
value of interest rate swap
|
(46,118)
|
|
(78,878)
|
|
-
|
|
-
|
|
(76,317)
|
|
(78,878)
|
|
(11,164)
|
Change in fair
value of foreign exchange derivatives
|
(41,619)
|
|
(117,787)
|
|
18,133
|
|
2,567
|
|
(23,505)
|
|
(99,654)
|
|
(14,105)
|
Convertible
senior notes issuance costs
|
(18,646)
|
|
-
|
|
-
|
|
-
|
|
(18,646)
|
|
-
|
|
-
|
Change in fair
value of convertible senior notes and call option
|
(45,070)
|
|
65,990
|
|
(51,165)
|
|
(7,242)
|
|
(45,070)
|
|
14,825
|
|
2,098
|
Other
income/(expense), net
|
7,302
|
|
(2,187)
|
|
2,127
|
|
301
|
|
14,700
|
|
(60)
|
|
(8)
|
Income before
income taxes
|
97,389
|
|
507,216
|
|
363,509
|
|
51,452
|
|
156,096
|
|
870,725
|
|
123,245
|
Income tax
benefit/(expense)
|
55,917
|
|
(109,520)
|
|
(22,754)
|
|
(3,221)
|
|
60,167
|
|
(132,274)
|
|
(18,722)
|
Equity in
(loss)/gain of affiliated companies
|
(28,621)
|
|
(101,527)
|
|
4,211
|
|
596
|
|
(52,330)
|
|
(97,316)
|
|
(13,774)
|
Net
income
|
124,685
|
|
296,169
|
|
344,966
|
|
48,827
|
|
163,933
|
|
641,135
|
|
90,749
|
Less: Net
(loss)/income attributable to non-controlling
interests
|
(725)
|
|
13,728
|
|
26,923
|
|
3,811
|
|
(1,664)
|
|
40,651
|
|
5,754
|
Net income
attributable to JinkoSolar
Holding Co., Ltd.'s ordinary shareholders
|
125,410
|
|
282,441
|
|
318,043
|
|
45,016
|
|
165,597
|
|
600,484
|
|
84,995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to JinkoSolar Holding Co., Ltd.'s
ordinary shareholders per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
0.75
|
|
1.58
|
|
1.79
|
|
0.25
|
|
1.02
|
|
3.37
|
|
0.48
|
Diluted
|
0.32
|
|
0.67
|
|
1.64
|
|
0.23
|
|
0.57
|
|
2.77
|
|
0.39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to JinkoSolar Holding Co., Ltd.'s
ordinary shareholders per ADS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
3.01
|
|
6.32
|
|
7.16
|
|
1.01
|
|
4.10
|
|
13.48
|
|
1.91
|
Diluted
|
1.26
|
|
2.67
|
|
6.55
|
|
0.93
|
|
2.28
|
|
11.08
|
|
1.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
ordinary shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
166,605,808
|
|
178,743,903
|
|
177,718,162
|
|
177,718,162
|
|
161,670,693
|
|
178,231,033
|
|
178,231,033
|
Diluted
|
165,385,410
|
|
198,081,276
|
|
170,989,776
|
|
170,989,776
|
|
161,633,544
|
|
197,139,692
|
|
197,139,692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average ADS outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
41,651,452
|
|
44,685,976
|
|
44,429,541
|
|
44,429,541
|
|
40,417,673
|
|
44,557,758
|
|
44,557,758
|
Diluted
|
41,346,352
|
|
49,520,319
|
|
42,747,444
|
|
42,747,444
|
|
40,408,386
|
|
49,284,923
|
|
49,284,923
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
124,685
|
|
296,169
|
|
344,966
|
|
48,827
|
|
163,933
|
|
641,135
|
|
90,749
|
Other comprehensive
income/(loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Foreign
currency translation adjustments
|
48,233
|
|
45,040
|
|
30,442
|
|
4,309
|
|
30,774
|
|
75,482
|
|
10,684
|
-Change
in the instrument-specific credit risk
|
5,546
|
|
39,202
|
|
(52,681)
|
|
(7,457)
|
|
5,546
|
|
(13,479)
|
|
(1,908)
|
Comprehensive
income
|
178,464
|
|
380,411
|
|
322,727
|
|
45,679
|
|
200,253
|
|
703,138
|
|
99,525
|
Less:
Comprehensive (loss)/income attributable to non-controlling
interests
|
(725)
|
|
13,728
|
|
26,923
|
|
3,811
|
|
(1,664)
|
|
40,651
|
|
5,754
|
Comprehensive
income attributable to JinkoSolar Holding Co., Ltd.'s
ordinary shareholders
|
179,189
|
|
366,683
|
|
295,804
|
|
41,868
|
|
201,917
|
|
662,487
|
|
93,771
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
125,410
|
|
282,441
|
|
318,043
|
|
45,016
|
|
165,597
|
|
600,484
|
|
84,995
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible
senior notes issuance costs
|
18,646
|
|
-
|
|
-
|
|
-
|
|
18,646
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair
value of convertible senior notes and call option
|
45,070
|
|
(65,990)
|
|
51,165
|
|
7,242
|
|
45,070
|
|
(14,825)
|
|
(2,098)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
expenses of convertible senior notes and call
option
|
2,914
|
|
6,128
|
|
6,734
|
|
953
|
|
2,914
|
|
12,862
|
|
1,820
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange
(gain)/loss on convertible senior notes and call
option
|
(721)
|
|
4,664
|
|
(291)
|
|
(41)
|
|
(721)
|
|
4,373
|
|
619
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense
|
11,587
|
|
249
|
|
423
|
|
60
|
|
4,663
|
|
672
|
|
95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income attributable to ordinary shareholders
|
202,906
|
|
227,492
|
|
376,074
|
|
53,230
|
|
236,169
|
|
603,566
|
|
85,431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
earnings per share attributable to ordinary shareholders
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
1.22
|
|
1.27
|
|
2.12
|
|
0.30
|
|
1.461
|
|
3.39
|
|
0.48
|
Diluted
|
1.22
|
|
1.15
|
|
2.12
|
|
0.30
|
|
1.461
|
|
3.06
|
|
0.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
earnings per ADS attributable to ordinary shareholders
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
4.87
|
|
5.09
|
|
8.46
|
|
1.20
|
|
5.84
|
|
13.54
|
|
1.92
|
Diluted
|
4.87
|
|
4.59
|
|
8.46
|
|
1.20
|
|
5.84
|
|
12.25
|
|
1.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
weighted average ordinary shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
166,605,808
|
|
178,743,903
|
|
177,718,162
|
|
177,718,162
|
|
161,670,693
|
|
178,231,033
|
|
178,231,033
|
Diluted
|
166,605,808
|
|
198,081,276
|
|
177,718,162
|
|
177,718,162
|
|
161,670,693
|
|
197,139,692
|
|
197,139,692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
weighted average ADS outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
41,651,452
|
|
44,685,976
|
|
44,429,541
|
|
44,429,541
|
|
40,417,673
|
|
44,557,758
|
|
44,557,758
|
Diluted
|
41,651,452
|
|
49,520,319
|
|
44,429,541
|
|
44,429,541
|
|
40,417,673
|
|
49,284,923
|
|
49,284,923
|
JINKOSOLAR HOLDING
CO., LTD.
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
|
|
December 31,
2019
|
|
June 30,
2020
|
|
RMB
|
|
RMB
|
|
USD
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
5,653,854
|
|
6,256,894
|
|
885,606
|
Restricted
cash
|
576,546
|
|
593,580
|
|
84,016
|
Restricted
short-term investments
|
6,930,502
|
|
6,351,495
|
|
898,996
|
Accounts
receivable, net - related parties
|
520,504
|
|
457,227
|
|
64,716
|
Accounts
receivable, net - third parties
|
5,266,351
|
|
5,896,205
|
|
834,554
|
Notes
receivable, net - related parties
|
18,629
|
|
38,629
|
|
5,468
|
Notes
receivable, net - third parties
|
1,529,801
|
|
2,069,340
|
|
292,896
|
Advances to
suppliers, net - third parties
|
2,522,373
|
|
2,131,005
|
|
301,624
|
Inventories,
net
|
5,818,789
|
|
6,889,268
|
|
975,113
|
Forward
contract receivables
|
52,281
|
|
997
|
|
141
|
Prepayments
and other current assets, net - related parties
|
54,318
|
|
35,630
|
|
5,043
|
Prepayments
and other current assets, net
|
1,573,482
|
|
1,570,550
|
|
222,297
|
Held-for-sale
assets
|
1,170,818
|
|
-
|
|
-
|
Total current
assets
|
31,688,248
|
|
32,290,820
|
|
4,570,470
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Restricted
cash
|
531,158
|
|
922,353
|
|
130,551
|
Accounts
receivable, net - third parties
|
-
|
|
28,020
|
|
3,966
|
Project
Assets
|
798,243
|
|
806,474
|
|
114,149
|
Long-term
investments
|
278,021
|
|
163,442
|
|
23,134
|
Property,
plant and equipment, net
|
10,208,205
|
|
11,336,560
|
|
1,604,586
|
Land use
rights, net
|
597,922
|
|
721,113
|
|
102,067
|
Intangible
assets, net
|
36,395
|
|
38,234
|
|
5,412
|
Financing
lease right-of-use assets, net
|
1,259,713
|
|
975,047
|
|
138,009
|
Operating
lease right-of-use assets, net
|
317,904
|
|
276,781
|
|
39,176
|
Deferred tax
assets
|
271,286
|
|
271,286
|
|
38,398
|
Call
Option-concurrent with issuance of convertible
senior notes
|
294,178
|
|
235,084
|
|
33,274
|
Other assets,
net - related parties
|
96,753
|
|
99,296
|
|
14,054
|
Other assets,
net - third parties
|
1,466,692
|
|
1,437,186
|
|
203,421
|
Total non-current
assets
|
16,156,470
|
|
17,310,876
|
|
2,450,197
|
|
|
|
|
|
|
Total
assets
|
47,844,718
|
|
49,601,696
|
|
7,020,667
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable - related parties
|
36,310
|
|
20,473
|
|
2,898
|
Accounts
payable - third parties
|
4,952,630
|
|
4,619,921
|
|
653,907
|
Notes payable
- third parties
|
7,518,570
|
|
6,857,544
|
|
970,622
|
Accrued
payroll and welfare expenses
|
879,465
|
|
793,927
|
|
112,373
|
Advances from
related parties
|
749
|
|
-
|
|
-
|
Advances
from third parties
|
4,350,380
|
|
2,380,763
|
|
336,975
|
Income tax
payable
|
117,422
|
|
78,598
|
|
11,125
|
Other payables
and accruals
|
3,055,928
|
|
3,296,258
|
|
466,560
|
Other payables
due to related parties
|
13,127
|
|
14,633
|
|
2,070
|
Forward
contract payables
|
3,857
|
|
37,716
|
|
5,338
|
Convertible
senior notes - current
|
-
|
|
634,256
|
|
89,773
|
Financing
lease liabilities - current
|
227,613
|
|
219,428
|
|
31,058
|
Operating
lease liabilities - current
|
40,043
|
|
40,532
|
|
5,737
|
Short-term
borrowings from third parties,
including current portion of long-term
bank
borrowings
|
9,047,250
|
|
12,066,725
|
|
1,707,934
|
Guarantee
liabilities to related parties
|
25,688
|
|
23,363
|
|
3,307
|
Held-for-sale
liabilities
|
1,008,196
|
|
-
|
|
-
|
Total current
liabilities
|
31,277,228
|
|
31,084,137
|
|
4,399,677
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Long-term
borrowings
|
1,586,187
|
|
2,831,051
|
|
400,709
|
Convertible
senior notes
|
728,216
|
|
-
|
|
-
|
Accrued
warranty costs - non current
|
651,968
|
|
703,747
|
|
99,609
|
Financing
lease liabilities
|
583,491
|
|
471,138
|
|
66,685
|
Operating
lease liabilities
|
279,534
|
|
236,566
|
|
33,484
|
Deferred tax
liability
|
250,734
|
|
250,734
|
|
35,489
|
Guarantee
liabilities to related parties
- non current
|
46,332
|
|
41,109
|
|
5,819
|
Total non-current
liabilities
|
4,126,462
|
|
4,534,345
|
|
641,795
|
|
|
|
|
|
|
Total
liabilities
|
35,403,690
|
|
35,618,482
|
|
5,041,472
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
Ordinary shares
(US$0.00002 par value, 500,000,000
shares authorized, 180,653,497 and 180,829,497 shares
issued as of December 31, 2019 and June 30, 2020,
respectively)
|
25
|
|
25
|
|
4
|
Additional paid-in
capital
|
4,582,850
|
|
4,587,584
|
|
649,330
|
Statutory
reserves
|
689,707
|
|
689,707
|
|
97,622
|
Accumulated other
comprehensive income
|
62,952
|
|
124,955
|
|
17,686
|
Treasury stock, at
cost; 1,723,200 and 2,945,840 ordinary
shares as of December 31, 2019 and June 30, 2020,
respectively
|
(13,876)
|
|
(43,170)
|
|
(6,110)
|
Accumulated retained
earnings
|
3,981,661
|
|
4,588,753
|
|
649,495
|
|
|
|
|
|
|
Total JinkoSolar
Holding Co., Ltd. shareholders' equity
|
9,303,319
|
|
9,947,854
|
|
1,408,027
|
|
|
|
|
|
|
Non-controlling
interests
|
3,137,709
|
|
4,035,360
|
|
571,168
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
47,844,718
|
|
49,601,696
|
|
7,020,667
|
View original
content:http://www.prnewswire.com/news-releases/jinkosolar-announces-second-quarter-2020-financial-results-301136494.html
SOURCE JinkoSolar Holding Co., Ltd.