SHANGRAO, China, June 25, 2021 /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,
2021.
First Quarter 2021 Business Highlights
- Sharp rise in the price of polysilicon has driven up the price
of modules, which has affected the downstream demand in the short
term.
- The lower demand has kept the materials' prices from rising
further; as the prices of polysilicon stabilize, downstream demand
is expected to resume in the second half of the year.
- Our proportion of distributed generation market is gradually
increasing, and we enjoy the price premium in this market,
especially in regions where we have high brand awareness and
reputation.
- We are providing system integration and technical services to
energy storage clients in connection with their residential,
industrial and commercial projects; we also provide utility-scale
PV energy storage systems to these clients.
- We are technologically advanced in the development of N-type
cell and has become the industry benchmark in terms of lab
efficiency, mass production efficiency and cost control.
- We have entered into a strategic investment agreement with
Inner Mongolia Xinte Silicon Materials Co.,Ltd. recently to secure
our polysilicon material supply.
- We entered into a strategic cooperation agreement with China
COSCO Shipping Corporation, which will help us provide customers
with long-term, high-quality transportation solutions.
First Quarter 2021 Operational and
Financial Highlights
- Quarterly shipments were 5,354 MW (4,562 MW for solar modules,
792 MW for cells and wafers), solar module shipments up 33.7% year
over year.
- Total revenues were RMB7.94
billion (US$1.21 billion),
down 6.4% (or up 9.0% excluding the impact from the disposal of
solar power plants in Mexico in
the first quarter of 2020) year over year.
- Gross profit was RMB1.36 billion
(US$207.3 million), down 18.0% year
over year.
- Gross margin was 17.1%, compared with 16.0% in Q4 2020 and
19.5% in Q1 2020.
- Net income was RMB221.1 million
(US$33.7 million), down 21.7% year
over year.
- Non-GAAP net income was RMB49.3
million (US$7.5 million), down
78.3% year over year.
- Basic and diluted earnings/(loss) per share were RMB1.16 (US$0.18)
and RMB (0.90) (US$(0.14)), respectively. Basic and diluted
earnings per ADS were RMB4.64
(US$0.71) and RMB (3.61) (US$
(0.55)), respectively.
- Non-GAAP basic and diluted earnings per share were RMB0.26 (US$0.04)
and RMB0.24 (US$0.04), respectively. Non-GAAP basic and
diluted earnings per ADS were RMB1.04
(US$0.16) and RMB0.96 (US$0.15),
respectively.
Mr. Xiande Li, JinkoSolar's
Chairman of the Board of Directors and Chief Executive Officer,
commented, "In the first quarter of 2021, our strategy was to
carefully manage our supply chain as volatility continued to
increase prices of raw materials quarter-over-quarter. As
macroeconomic conditions continued to raise commodity prices, we
remained flexible and focused on manufacturing process improvements
to ease pressure on costs. Gross margin for the second quarter is
expected to be in the range of 12% to 15%. Full year 2021 shipments
(including solar wafers, cells and modules) are expected to be in
the range of 25GW to 30GW. Taking into account this year's supply
chain and market conditions, we have adjusted our capacity
expansion plan. By the end of 2021, we expect our in-house annual
production capacity of monocrystalline silicon wafers, high
efficiency solar cells and modules to reach 30GW, 24 GW and 32 GW,
respectively."
"During the first quarter, the imbalance between polysilicon
supply and strong downstream demand as well as many other
factors continued to increase module prices on top of many
factors, but we believe this the impact on downstream
customers is temporary. The lower demand has
kept the prices from rising; as the prices of polysilicon
stabilize, downstream demand is expected to resume in the second
half of the year, with the present polysilicon supply chain
sufficient to support 160GW of installations this year and 210GW of
installations in 2022."
- "Recently, we have strategically invested in Xinte Energy to
secure the stability of polysilicon material supply in anticipation
of our future shipments growth. At the same time, we signed a
strategic cooperation agreement with China COSCO Shipping
Corporation, which will enable us to provide customers with
long-term, high-quality transportation solutions."
"As an integrated manufacturer, we have the ability to adjust
production volumes and shipment structure according to prevailing
market conditions and reduce the impact of price volatility on our
profitability. Despite rising material costs, integrated production
companies with advanced technologies have first-mover advantages
and relatively stable economic benefits as the industry continues
to consolidate globally."
"JinkoSolar's long-term commitment to R&D has enabled it to
continue to launch industry leading products. We have also
completed the construction of a high-efficiency laminated
perovskite cell technology platform that is expected to reach a
breakthrough cell conversion efficiency of over 30% within the
year. We will continue to innovate and develop solar-plus solutions
and promote technical and process improvements to further increase
our product competitiveness."
"In the near term, we will continue to leverage our production
flexibility to optimize orders according to project type and scale,
as well as increase resources to meet the needs for distributed
generation markets. We remain optimistic about the overall market
demand and are confident to increase our market share by
continuously delivering clean energy solutions and sophisticated
products and services to our clients worldwide."
First Quarter 2021 Financial Results
Total Revenues
Total revenues in the first quarter of 2021 were RMB7.94 billion (US$1.21
billion), a decrease of 15.7% from RMB9.42 billion in the fourth quarter of 2020 and
a decrease of 6.4% from RMB 8.48
billion in the first quarter of 2020 (an increase of 9.0%
from RMB7.29 billion if excluding the
impact from the disposal of two solar power plants in Mexico in the amount of RMB1.20 billion in the first quarter of 2020).
The sequential decrease was mainly attributable to a decrease in
the shipment of solar modules partially offset by a rise in the
average selling price of solar modules. Excluding the impact
from the disposal of two solar power plants in Mexico in the first quarter of 2020, the
year-over-year increase was mainly attributable to an
increase in the shipment of solar modules partially offset by
a decrease in the average selling price of solar modules.
Gross Profit and Gross Margin
Gross profit in the first quarter of 2021 was RMB1.36 billion (US$207.3
million), compared with RMB1.51
billion in the fourth quarter of 2020 and RMB1.66 billion in the first quarter of 2020.
Gross margin was 17.1% in the first quarter of 2021, compared
with 16.0% in the fourth quarter of 2020 and 19.5% in the first
quarter of 2020. The sequential increase was mainly attributable to
a rise in the average selling price of modules partially offset by
an increase in the cost of raw materials. The year-over-year
decrease was mainly attributable to a decline in the average
selling price of solar modules in response to the intensified
market competition globally, partially offset by a
decrease in the cost of raw materials due to the continued
reduction of integrated production costs enabled by the Company's
industry-leading integrated cost structure.
Income from Operations and Operating
Margin
Income from operations in the first quarter of 2021 was
RMB149.1 million (US$22.8 million), compared with RMB71.6 million in the fourth quarter of 2020 and
RMB732.7 million in the first quarter
of 2020.
Operating margin was 1.9% in the first quarter of 2021, compared
with 0.8% in the fourth quarter of 2020 and 8.6% in the first
quarter of 2020.
Total operating expenses in the first quarter of 2021 were
RMB1.21 billion (US$184.6 million), a decrease of 15.8% from
RMB1.44 billion in the fourth quarter
of 2020 and an increase of 30.9% from RMB924.2 million in the first quarter of 2020.
The sequential decrease was mainly attributable to a decrease in
disposal and impairment loss on property, plant and equipment. The
year-over-year increase was mainly attributable to (i) an increase
of the impairment loss in the first quarter of 2021 on an overseas
solar power project to be disposed in the amount of RMB123.4 million based on market quotation as a
result of the Company's non-compete commitment to JinkoPower Group
to dispose its existing solar power projects, and (ii) reversal of
a previous bad debt provision in the first quarter of 2020 upon
cash receipt of RMB52.5 million
(US$7.4 million) based on final
judgement for the lawsuits with Wuxi Zhongcai.
Total operating expenses accounted for 15.2% (or 13.7% excluding
impairment loss) of total revenues in the first quarter of 2021,
compared to 15.2% (or 14.0% excluding impairment loss) in the
fourth quarter of 2020 and 10.9% in the first quarter of 2020.
Interest Expense, Net
Net interest expense in the first quarter of 2021 was
RMB156.5 million (US$23.9 million), an increase of 35.9% from
RMB115.2 million in the fourth
quarter of 2020 and an increase of 44.1% from RMB108.6 million in the first quarter of 2020.
The sequential increase was mainly due to a decrease in interest
income. The year-over-year increase was mainly due to an
increase in interest expense, as the Company's interest-bearing
debts increased.
Subsidy Income
Subsidy income in the first quarter of 2021 was RMB130.3 million (US$19.9
million), compared with RMB109.7 million in the fourth
quarter of 2020 and RMB5.1 million in
the first quarter of 2020.
Exchange Loss 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 RMB26.6 million (US$4.1
million) in the first quarter of 2021, compared to a net
exchange loss of RMB47.9 million in
the fourth quarter of 2020 and a net exchange loss of RMB106.8 million in the first quarter of 2020.
The net exchange loss was mainly due to the exchange rate
fluctuation of the US dollars against the RMB in the first quarter
of 2021.
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 derived by valuation model, i.e. Binomial
Model. The Company recognized a gain from a change in fair value of
the Notes of RMB414.9 million
(US$63.3 million) in the first
quarter of 2021, compared to a loss of RMB685.4 million in the fourth quarter of 2020
and a gain of RMB166.2 million in the
first quarter of 2020. The change was primarily due to a decrease
in the Company's stock price in the first quarter of 2021. In the
first quarter of 2021, 3,281,244 ordinary shares were converted
with the principal amount of USD 15.8
million.
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 RMB235.8 million (US$36.0
million) in the first quarter of 2021, compared to a gain of
RMB257.8 million in the fourth
quarter of 2020 and a loss of RMB100.2
million in the first quarter of 2020. The change was
primarily due to a decrease in the Company's stock price in the
first quarter of 2021.
Equity in Earnings/(loss) 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 RMB43.4 million (US$6.6
million) in the first quarter of 2021, compared with a gain
of RMB19.9 million in the fourth
quarter of 2020 and a loss of RMB101.5
million in the first quarter of 2020. The gain primarily
arose from interest rate swap recorded by the equity affiliate due
to an increase in long-term interest rates in the first quarter of
2021. Hedge accounting was not applied for the derivative.
Income Tax
Benefit/(expenses)
The Company recorded an income tax expense of RMB52.2 million (US$8.0
million) in the first quarter of 2021, compared with an
income tax benefit of RMB23.1 million
in the fourth quarter of 2020 and an income tax expense of
RMB109.5 million in the first quarter
of 2020.
Net Income/(loss) and
Earnings/(loss) per Share
Net income/(loss) attributable to the Company's ordinary
shareholders was RMB221.1 million
(US$33.7 million) in the first
quarter of 2021, compared with net income/(loss) attributable to
the Company's ordinary shareholders of RMB(377.0) million in the fourth quarter of 2020
and RMB282.4 million in the first
quarter of 2020.
Basic and diluted earnings/(loss) per ordinary share were
RMB1.16 (US$0.18) and RMB(0.90) (US$(0.14)), respectively, during the first
quarter of 2021, compared to RMB(2.08) and RMB(3.60), respectively, in the fourth quarter of
2020, and RMB1.58 and RMB0.67, respectively, in the first quarter of
2020. As each ADS represents four ordinary shares, this
translates into basic and diluted earnings/(loss) per ADS
of RMB4.64 (US$0.71) and RMB(3.61) (US$(0.55)), respectively in the first quarter of
2021; RMB(8.32) and RMB(14.40), respectively, in the fourth quarter
of 2020; and RMB6.32 and RMB2.67, respectively, in the first quarter of
2020. The difference between basic earning and diluted loss per
share in the first quarter of 2021 was mainly due to the dilutive
impact of convertible senior notes.
Non-GAAP net income attributable to the Company's ordinary
shareholders in the first quarter of 2021 was RMB49.3 million (US$7.5
million), compared with RMB33.4
million in the fourth quarter of 2020 and RMB227.5 million in the first quarter of
2020.
Non-GAAP basic and diluted earnings per ordinary share were
RMB0.26 (US$0.04) and RMB0.24 (US$0.04),
respectively, during the first quarter of 2021; both RMB0.19 in the fourth quarter of 2020, and
RMB1.27 and RMB1.15 respectively, in the first quarter of
2020. This translates into non-GAAP basic and diluted
earnings per ADS of RMB1.04
(US$0.16) and RMB0.96 (US$0.15),
respectively, in the first quarter of 2021; both RMB0.74 in the fourth quarter of 2020, and
RMB5.09 and RMB4.59, respectively, in the first quarter of
2020.
Because of the dilutive impact of call option arrangement during
the fourth quarter of 2020, potential shares underlying the call
option arrangement were removed from weighted average number of
ordinary shares outstanding since their issuance date, and changes
in income of the assumed exercise of call option, including the
change in fair value of the call option, foreign exchange gain
/(loss) on the call option, and the issuance costs of the call
option were also recorded as the adjustment to the Company's
consolidated net income to arrive at the diluted net income
available to the Company's ordinary shareholders. Under that
situation, the Company implemented the same denominator for both
non-GAAP basic and dilutive earnings per ordinary share.
Financial Position
As of March 31, 2021, the Company
had RMB7.04 billion (US$1.07 billion) in cash and cash equivalents and
restricted cash, compared with RMB8.07
billion as of December 31,
2020.
As of March 31, 2021, the
Company's accounts receivables due from third parties were
RMB4.59 billion (US$700.3 million), compared with RMB4.53 billion as of December 31, 2020.
As of March 31, 2021, the
Company's inventories were RMB9.10
billion (US$1.39 billion),
compared with RMB8.38 billion as of
December 31, 2020.
As of March 31, 2021, the
Company's total interest-bearing debts were RMB17.48 billion (US$2.67
billion), of which RMB458.5
million (US$70.0 million) was
related to the Company's overseas downstream solar projects,
compared with RMB18.28 billion, of
which RMB748.8 million was related to
the Company's overseas downstream solar projects as of December 31, 2020.
First Quarter 2021 Operational Highlights
Solar Module, Cell and
Wafer Shipments
Total shipments in the first quarter of 2021 were 5,354 MW,
including 4,562 MW for solar module shipments and 792 MW for cell
and wafer shipments.
Solar Products Production Capacity
As of March 31, 2021, the
Company's in-house annual mono wafer, solar cell and solar module
production capacity was 22 GW, 11.5 GW (940 MW for N type cells)
and 31 GW, respectively.
Operations and Business Outlook
We remain optimistic about global installation demand and expect
the imbalance of upstream and downstream demand to stabilize in the
second half of 2021, which will in turn drive up demand. We are
well positioned to navigate through supply chain volatility and
continue to manage market risks by fine-tuning our operations and
shipment deliveries in 2021.
Second Quarter and Full Year 2021 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 2021, the Company expects total
shipments to be in the range of 5.1 GW to 5.3 GW (solar module
shipments to be in the range of 4.0 GW to 4.2 GW). Total revenue
for the second quarter is expected to be in the range of
US$1.2 billion to US$1.25 billion. Gross margin for the second
quarter is expected to be between 12% and 15%.
For full year 2021, the Company estimates total shipments
(including solar modules, cells and wafers) to be in the range
of 25 GW to 30 GW.
Solar Products Production Capacity
Taking into account this year's supply chain and market
conditions, Jinkosolar has adjusted its capacity expansion plan and
currently expects its annual mono wafer, solar cell and solar
module production capacity to reach 30 GW, 24 GW (including 940 MW
N-type cells) and 33 GW, respectively, by the end of 2021, from
previous guidance of 33 GW, 27 GW, 37 GW, respectively.
Recent Business Developments
- In February 2021, JinkoSolar
became the first international solar company to have signed on to
the Global Framework Principles for Decarbonizing Heavy Industry,
as part of its efforts to continue supporting the decarbonization
of the heavy industry sector in favor of a transition towards clean
energy.
- In March 2021, JinkoSolar's
R&D Center module laboratory obtained satisfactory results in
the latest national assessment of PV Modules Testing Accuracy.
- In March 2021, JinkoSolar was
recognized as "Overall High Achiever" in the 2020 PV Module Index
Report published by the Renewable Energy Testing Center
(RETC).
- In March 2021, JinkoSolar
launched a new series of ultra-efficient Tiger Pro modules with
higher power capacity targeted for distributed generation
market.
- In April 2021, JinkoSolar joined
the United Nations (U.N.) Global Compact, the world's largest
corporate sustainability initiative. Under the U.N. Global Compact,
signatories are encouraged to align their operations and strategies
with key principles.
- In April 2021, JinkoSolar won the
award for "Asia's Best Employer"
for the third consecutive year.
- In April 2021, JinkoSolar won the
7th All Quality Matters Award for Green Module Efficiency at the
Solar Congress 2021 held by TÜV Rheinland.
- In May 2021, JinkoSolar
officially updated its new value-based strategy to redefine the
incorporation of principles, social responsibility and
profitability.
- In May 2021, JinkoSolar was
awarded Top 1 Prestigious Module PV Brand in Vietnamese Market 2020
voting jointly organized by the National Steering Committee for
electricity Development of Vietnam, the Ministry of Industry and Trade
(MOIT), and Vietnam Energy Magazine.
- In May 2021, JinkoSolar received
the award for Best HR Strategy of the Year at the Energy HR Summit
India 2021.
- In May 2021, Mr. Mengmeng (Pan) Li became the new chief financial
officer of the Company as Mr. Haiyun
(Charlie) Cao resigned as chief financial officer of the
Company.
Conference Call Information
JinkoSolar's management will host an earnings conference call on
Friday, June 25, 2021 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:
|
17652347#
|
|
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, July 2, 2021. The dial-in
details for the replay are as follows:
International:
|
+61 2 8325
2405
|
|
U.S.:
|
+1 646 982
0473
|
|
Passcode:
|
319340829#
|
|
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 22 GW for mono wafers,
11.5 GW for solar cells, and 31 GW for solar modules, as of
March 31, 2021.
JinkoSolar has 9 productions facilities globally,
22 overseas subsidiaries in Japan, South
Korea, Vietnam,
India, Turkey, Germany, Italy, Switzerland, United States, Mexico,
Brazil, Chile, Australia, Portugal, Canada, Malaysia, UAE, Hong
Kong, Denmark, and global
sales teams in China, United Kingdom, France, Spain, Bulgaria, Greece, Ukraine, Jordan, Saudi
Arabia, Tunisia,
Morocco, South Africa, Costa
Rica, Colombia,
Panama, Kazakhstan, Malaysia, Myanmar, Sri
Lanka, Thailand,
Vietnam, Poland and Argentina, as of March 31, 2021.
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.
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, 2021, which was RMB6.5518
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:
Ms.
Stella Wang
JinkoSolar Holding Co., Ltd.
Tel: +86 21- 5180-8777 ext.7806
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
|
|
March 31,
2020
|
|
December 31,
2020
|
|
March 31,
2021
|
|
RMB'000
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
Revenues from
third parties
|
8,431,213
|
|
9,418,979
|
|
7,940,050
|
|
1,211,888
|
|
|
|
|
|
|
|
|
Revenues from
related parties
|
52,710
|
|
5,599
|
|
544
|
|
83
|
|
|
|
|
|
|
|
|
Total
revenues
|
8,483,923
|
|
9,424,578
|
|
7,940,594
|
|
1,211,971
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
(6,827,045)
|
|
(7,917,667)
|
|
(6,582,222)
|
|
(1,004,643)
|
|
|
|
|
|
|
|
|
Gross
profit
|
1,656,878
|
|
1,506,911
|
|
1,358,372
|
|
207,328
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling
and marketing
|
(613,821)
|
|
(652,751)
|
|
(614,856)
|
|
(93,846)
|
General
and administrative
|
(238,594)
|
|
(531,097)
|
|
(363,872)
|
|
(55,538)
|
Research
and development
|
(71,784)
|
|
(137,320)
|
|
(107,144)
|
|
(16,353)
|
Impairment of long-lived assets
|
-
|
|
(114,168)
|
|
(123,405)
|
|
(18,835)
|
Total operating
expenses
|
(924,199)
|
|
(1,435,336)
|
|
(1,209,277)
|
|
(184,572)
|
|
|
|
|
|
|
|
|
Income from
operations
|
732,679
|
|
71,575
|
|
149,095
|
|
22,756
|
Interest
expenses, net
|
(108,613)
|
|
(115,161)
|
|
(156,535)
|
|
(23,892)
|
Subsidy
income
|
5,061
|
|
109,702
|
|
130,315
|
|
19,889
|
Exchange
(loss)/gain
|
10,951
|
|
(223,439)
|
|
(71,543)
|
|
(10,919)
|
Change in fair
value of interest rate swap
|
(78,878)
|
|
-
|
|
-
|
|
-
|
Change in fair
value of foreign exchange derivatives
|
(117,787)
|
|
175,521
|
|
44,904
|
|
6,854
|
Change in fair
value of convertible senior notes and call option
|
65,990
|
|
(427,624)
|
|
179,104
|
|
27,337
|
Other
income/(expense), net
|
(2,187)
|
|
3,762
|
|
3,239
|
|
494
|
Income/(loss)
before income taxes
|
507,216
|
|
(405,664)
|
|
278,579
|
|
42,519
|
Income tax
(expenses)/benefit
|
(109,520)
|
|
23,089
|
|
(52,210)
|
|
(7,969)
|
Equity in
earnings/(loss) of affiliated companies
|
(101,527)
|
|
19,906
|
|
43,448
|
|
6,631
|
Net
income/(loss)
|
296,169
|
|
(362,669)
|
|
269,817
|
|
41,181
|
Less: Net
income attributable to non-controlling
interests
|
13,728
|
|
14,282
|
|
48,725
|
|
7,437
|
Net
income/(loss) attributable to JinkoSolar
Holding Co., Ltd.'s ordinary shareholders
|
282,441
|
|
(376,951)
|
|
221,092
|
|
33,744
|
|
|
|
|
|
|
|
|
Net
income/(loss) attributable to JinkoSolar Holding Co., Ltd.'s
ordinary shareholders per share:
|
|
|
|
|
|
|
|
Basic
|
1.58
|
|
(2.08)
|
|
1.16
|
|
0.18
|
Diluted
|
0.67
|
|
(3.60)
|
|
(0.90)
|
|
(0.14)
|
|
|
|
|
|
|
|
|
Net
income/(loss) attributable to JinkoSolar Holding Co., Ltd.'s
ordinary shareholders per ADS:
|
|
|
|
|
|
|
|
Basic
|
6.32
|
|
(8.32)
|
|
4.64
|
|
0.71
|
Diluted
|
2.67
|
|
(14.40)
|
|
(3.61)
|
|
(0.55)
|
|
|
|
|
|
|
|
|
Weighted
average ordinary shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
178,743,903
|
|
181,285,886
|
|
190,427,792
|
|
190,427,792
|
Diluted
|
198,081,276
|
|
173,785,886
|
|
205,142,801
|
|
205,142,801
|
|
|
|
|
|
|
|
|
Weighted
average ADS outstanding:
|
|
|
|
|
|
|
|
Basic
|
44,685,976
|
|
45,321,472
|
|
47,606,948
|
|
47,606,948
|
Diluted
|
49,520,319
|
|
43,446,472
|
|
51,285,700
|
|
51,285,700
|
|
|
|
|
|
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
|
|
|
|
|
|
|
|
|
Net
income/(loss)
|
296,169
|
|
(362,669)
|
|
269,817
|
|
41,181
|
Other
comprehensive income/(loss):
|
|
|
|
|
|
|
|
-Foreign
currency translation adjustments
|
45,040
|
|
(187,456)
|
|
89,001
|
|
13,584
|
-Change
in the instrument-specific credit risk
|
39,202
|
|
71,330
|
|
22,638
|
|
3,455
|
Comprehensive
income/(loss)
|
380,411
|
|
(478,795)
|
|
381,456
|
|
58,220
|
Less:
Comprehensive income attributable to non-controlling
interests
|
13,728
|
|
14,282
|
|
48,725
|
|
7,437
|
Comprehensive
income/(loss) attributable to JinkoSolar Holding Co.,
Ltd.'s ordinary shareholders
|
366,683
|
|
(493,077)
|
|
332,731
|
|
50,783
|
|
|
|
|
|
|
|
|
Reconciliation
of GAAP and non-GAAP Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1. Non-GAAP
earnings per share and non-GAAP earnings per ADS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income/(loss) attributable to ordinary
shareholders
|
282,441
|
|
(376,951)
|
|
221,092
|
|
33,744
|
|
|
|
|
|
|
|
|
Change in fair
value of convertible senior notes and call option
|
(65,990)
|
|
427,624
|
|
(179,104)
|
|
(27,337)
|
|
|
|
|
|
|
|
|
Net interest
expenses of convertible senior notes and call
option
|
6,128
|
|
6,535
|
|
5,423
|
|
828
|
|
|
|
|
|
|
|
|
Exchange
loss/(gain) on convertible senior notes and call
option
|
4,664
|
|
(23,816)
|
|
1,785
|
|
272
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense
|
249
|
|
56
|
|
84
|
|
13
|
|
|
|
|
|
|
|
|
Non-GAAP net
income attributable to ordinary shareholders
|
227,492
|
|
33,448
|
|
49,280
|
|
7,520
|
|
|
|
|
|
|
|
|
Non-GAAP
earnings per share attributable to ordinary shareholders
-
|
|
|
|
|
|
|
|
Basic
|
1.27
|
|
0.19
|
|
0.26
|
|
0.04
|
Diluted
|
1.15
|
|
0.19
|
|
0.24
|
|
0.04
|
|
|
|
|
|
|
|
|
Non-GAAP
earnings per ADS attributable to ordinary shareholders
-
|
|
|
|
|
|
|
|
Basic
|
5.09
|
|
0.74
|
|
1.04
|
|
0.16
|
Diluted
|
4.59
|
|
0.74
|
|
0.96
|
|
0.15
|
|
|
|
|
|
|
|
|
Non-GAAP
weighted average ordinary shares outstanding
|
|
|
|
|
|
|
|
Basic
|
178,743,903
|
|
181,285,886
|
|
190,427,792
|
|
190,427,792
|
Diluted
|
198,081,276
|
|
181,285,886
|
|
205,142,801
|
|
205,142,801
|
|
|
|
|
|
|
|
|
Non-GAAP
weighted average ADS outstanding
|
|
|
|
|
|
|
|
Basic
|
44,685,976
|
|
45,321,472
|
|
47,606,948
|
|
47,606,948
|
Diluted
|
49,520,319
|
|
45,321,472
|
|
51,285,700
|
|
51,285,700
|
JINKOSOLAR HOLDING
CO., LTD.
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
|
December 31,
2020
|
|
March 31,
2021
|
|
RMB'000
|
|
RMB'000
|
|
USD'000
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
7,481,678
|
|
6,131,281
|
|
935,816
|
Restricted
cash
|
593,094
|
|
910,790
|
|
139,014
|
Restricted
short-term investments
|
6,400,637
|
|
6,861,314
|
|
1,047,241
|
Short-term
investments
|
570,000
|
|
720,000
|
|
109,893
|
Accounts
receivable, net - related parties
|
410,358
|
|
306,197
|
|
46,735
|
Accounts
receivable, net - third parties
|
4,534,758
|
|
4,588,124
|
|
700,285
|
Notes
receivable, net - related parties
|
33,001
|
|
524
|
|
80
|
Notes
receivable, net - third parties
|
1,051,561
|
|
1,089,179
|
|
166,241
|
Advances to
suppliers, net - third parties
|
1,002,613
|
|
1,403,042
|
|
214,146
|
Inventories,
net
|
8,376,936
|
|
9,104,790
|
|
1,389,662
|
Forward
contract receivables
|
183,146
|
|
92,629
|
|
14,138
|
Prepayments
and other current assets, net - related parties
|
23,756
|
|
26,239
|
|
4,005
|
Prepayments
and other current assets, net
|
3,020,592
|
|
2,819,432
|
|
430,329
|
Total current
assets
|
33,682,130
|
|
34,053,541
|
|
5,197,585
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Restricted
cash
|
1,389,194
|
|
1,350,668
|
|
206,152
|
Accounts
receivable, net - third parties
|
26,405
|
|
26,835
|
|
4,096
|
Project
Assets
|
645,355
|
|
529,903
|
|
80,879
|
Long-term
investments
|
194,258
|
|
218,439
|
|
33,340
|
Property,
plant and equipment, net
|
12,455,444
|
|
13,601,945
|
|
2,076,062
|
Land use
rights, net
|
760,962
|
|
776,107
|
|
118,457
|
Intangible
assets, net
|
35,838
|
|
35,594
|
|
5,433
|
Financing
lease right-of-use assets, net
|
829,122
|
|
774,781
|
|
118,255
|
Operating
lease right-of-use assets, net
|
316,512
|
|
299,910
|
|
45,775
|
Deferred tax
assets
|
255,107
|
|
255,107
|
|
38,937
|
Call Option -
concurrent with issuance of convertible
senior notes
|
756,929
|
|
419,497
|
|
64,028
|
Other assets,
net - related parties
|
107,319
|
|
88,934
|
|
13,574
|
Other assets,
net - third parties
|
1,777,799
|
|
2,369,571
|
|
361,667
|
Total non-current
assets
|
19,550,244
|
|
20,747,291
|
|
3,166,655
|
|
|
|
|
|
|
Total
assets
|
53,232,374
|
|
54,800,832
|
|
8,364,240
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable - related parties
|
14,114
|
|
10,861
|
|
1,658
|
Accounts
payable - third parties
|
4,436,495
|
|
4,583,676
|
|
699,606
|
Notes payable
- third parties
|
9,334,876
|
|
10,674,734
|
|
1,629,283
|
Accrued
payroll and welfare expenses
|
995,054
|
|
900,995
|
|
137,519
|
Advances
from third parties
|
2,451,495
|
|
2,979,143
|
|
454,706
|
Income tax
payable
|
73,720
|
|
98,737
|
|
15,070
|
Other payables
and accruals
|
3,408,391
|
|
2,994,841
|
|
457,100
|
Other payables
due to related parties
|
71,515
|
|
3,716
|
|
567
|
Forward
contract payables
|
17,895
|
|
22,345
|
|
3,411
|
Convertible
senior notes - current
|
1,831,612
|
|
1,042,943
|
|
159,184
|
Financing
lease liabilities - current
|
272,330
|
|
231,888
|
|
35,393
|
Operating
lease liabilities - current
|
48,244
|
|
47,925
|
|
7,315
|
Short-term
borrowings from third parties,
including current portion of long-term
bank
borrowings
|
8,238,531
|
|
8,314,861
|
|
1,269,096
|
Guarantee
liabilities to related parties
|
22,519
|
|
22,092
|
|
3,372
|
Total current
liabilities
|
31,216,791
|
|
31,928,757
|
|
4,873,280
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Long-term
borrowings
|
7,301,536
|
|
7,303,187
|
|
1,114,684
|
Accrued
warranty costs - non current
|
769,332
|
|
765,499
|
|
116,838
|
Financing
lease liabilities
|
313,088
|
|
271,093
|
|
41,377
|
Operating
lease liabilities
|
277,239
|
|
268,066
|
|
40,915
|
Deferred tax
liability
|
328,713
|
|
328,713
|
|
50,171
|
Long-term
Payables
|
97
|
|
176,813
|
|
26,987
|
Guarantee
liabilities to related parties
- non current
|
34,812
|
|
31,817
|
|
4,856
|
Total non-current
liabilities
|
9,024,817
|
|
9,145,188
|
|
1,395,828
|
|
|
|
|
|
|
Total
liabilities
|
40,241,608
|
|
41,073,945
|
|
6,269,108
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
Ordinary shares
(US$0.00002 par value, 500,000,000
shares authorized, 190,380,309 and 193,661,553 shares
issued as of December 31, 2020 and March 31, 2021,
respectively)
|
26
|
|
26
|
|
4
|
Additional paid-in
capital
|
5,251,245
|
|
5,605,911
|
|
855,629
|
Statutory
reserves
|
692,009
|
|
692,009
|
|
105,621
|
Accumulated other
comprehensive income
|
(128,615)
|
|
(16,977)
|
|
(2,591)
|
Treasury stock, at
cost; 2,945,840 ordinary shares as of
December 31, 2020 and March 31, 2021
|
(43,170)
|
|
(43,170)
|
|
(6,589)
|
Accumulated retained
earnings
|
4,216,353
|
|
4,437,445
|
|
677,286
|
|
|
|
|
|
|
Total JinkoSolar
Holding Co., Ltd. shareholders' equity
|
9,987,848
|
|
10,675,244
|
|
1,629,360
|
|
|
|
|
|
|
Non-controlling
interests
|
3,002,918
|
|
3,051,643
|
|
465,772
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
53,232,374
|
|
54,800,832
|
|
8,364,240
|
View original
content:http://www.prnewswire.com/news-releases/jinkosolar-announces-first-quarter-2021-financial-results-301320069.html
SOURCE JinkoSolar Holding Co., Ltd.