SHANGHAI, Aug. 30, 2019 /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,
2019.
Second Quarter 2019 Highlights
- Total solar module shipments were 3,386 megawatts ("MW"), an
increase of 11.5% from 3,037 (including intragroup solar module
shipments) MW in the first quarter of 2019 and an increase of 21.2%
from 2,794 MW in the second quarter of 2018.
- Total revenues were RMB6.91
billion (US$1.01 billion), an
increase of 18.7% from the first quarter of 2019 and an increase of
14.1% from the second quarter of 2018.
- Gross margin was 16.5%, compared with 16.6% in the first
quarter of 2019, and 12.0% in the second quarter of 2018.
- Income from operations was RMB260.3
million (US$37.9 million),
compared with RMB235.7 million in the
first quarter of 2019 and RMB94.6
million in the second quarter of 2018.
- Net income attributable to the Company's ordinary shareholders
was RMB125.4 million (US$18.3 million) in the second quarter of 2019,
compared with RMB40.2 million in the
first quarter of 2019 and RMB99.0
million in the second quarter of 2018.
- Diluted earnings per American depositary share ("ADS") were
RMB1.260 (US$0.184) in the second quarter of 2019.
- Non-GAAP net income attributable to the Company's ordinary
shareholders in the second quarter of 2019 was RMB202.9 million (US$29.6
million), compared with RMB33.3
million in the first quarter of 2019 and RMB106.7 million in the second quarter of
2018.
- Non-GAAP basic and diluted earnings per ADS were both
RMB4.872 (US$0.708) in the second quarter of 2019,
compared with RMB0.848 and
RMB0.840 in the first quarter of
2019, respectively and RMB2.728 and
RMB2.708 in the second quarter of
2018, respectively.
Mr. Kangping Chen, JinkoSolar's
Chief Executive Officer, commented, "We continued our strong start
of the year by further diversifying our global distribution network
and expanding our market share in key overseas markets. Module
shipments during the second quarter were 3,386 megawatts, a
year-over-year increase of 21.2% and a sequential increase of
11.5%. Our gross margin was 16.5%, up from 12.0% during the same
period last year, while non-GAAP net income surged to US$29.6 million. With the expansion of our mono
wafer production capacity and optimization of cost structure, we
are confident that our bottom line will have room to grow during
the second half of the year."
"2019 will be a milestone for the global solar industry as grid
parity rapidly approaches. A number of emerging overseas markets
are quickly reaching GW-level as the cost of PV power generation
continues to decline, which is creating enormous opportunities
for us and, our high-efficiency mono products in particular. With
our new production facility in Leshan, Sichuan Province expected to reach full mono
production capacity of 5 GW by the end of 2019 and
preparations for another 5 GW capacity expansion already underway,
we are ideally positioned to benefit from the growth opportunities
ahead."
"Following the announcement of China's National Energy Administration in May
regarding the first batch of wind power and PV grid parity
projects, a list of approved solar projects that secured government
subsidies for 2019 was released in July. China is now expected to install approximately
40 GW of solar projects and connect them to the grid by the end of
the year."
"We are accelerating the expansion of our high-efficiency mono
production capacity to meet growing demand globally. This is mainly
being driven by our new production facility in Leshan, the mono
production capacity of which is expected to reach 5 GW by the end
of 2019 and 16.5 GW once the second phase of the capacity expansion
is complete. As of June 30, 2019, our
in-house annual silicon wafer, solar cell and solar module
production capacity reached 10.5 GW, 7.4 GW and 12.6 GW,
respectively. By the end of 2019, we expect our in-house annual
silicon wafer, solar cell and solar module production capacity to
reach 15.0 GW, 10.5 GW and 16.0 GW, respectively, including 11.5 GW
of mono capacity, 9.7 GW of PERC cell capacity and 800 MW of N-type
cell capacity."
"We continue to invest in our technological development
capabilities and are optimizing our cost structure. This helped
create new industry benchmarks for our highly-efficient N-type
cells and our latest product, the "swan" bifacial module with
DuPont™ Tedlar® based backsheets. This new lightweight, bifacial
technology has huge potential to go mainstream because it not only
alleviates problems encountered during installation and lowers cost
per kilowatt hour of electricity generated, but also improves
module efficiency and overall power plant production."
"In conclusion, we made significant progress during the quarter
in positioning ourselves for future sustainable growth and
strengthening the reputation our high-quality products have in the
market, especially at a time when the industry is racing towards
grid parity. As one of the largest and most innovative solar module
manufacturers in the world, we are setting new standards for the
industry with our highly-efficient products and ability to
continuously lowering costs through technological innovation. With
our global distribution network and support teams working closely,
we will continue to drive growth in this new era of grid
parity."
Second Quarter 2019 Financial Results
Total Revenues
Total revenues in the second quarter of 2019 were RMB6.91 billion (US$1.01 billion), an increase of 18.7% from
RMB5.82 billion in the first quarter
of 2019 and an increase of 14.1% from RMB6.06 billion in the second quarter of 2018.
The sequential increase was mainly attributable to an increase in
the shipment of solar modules in the second quarter of 2019.
The year-over-year increase was mainly attributable to an increase
in the shipment of solar modules, which was partially offset by a
decline in the average selling price of solar modules in the
second quarter of 2019.
Gross Profit and Gross Margin
Gross profit in the second quarter of 2019 was RMB1.14 billion (US$166.6 million), compared with
RMB964.3 million in the first quarter
of 2019 and RMB727.6 million in the
second quarter of 2018. The sequential increase was mainly
attributable to an increase in the shipment of solar modules in the
second quarter of 2019. The year-over-year increase was mainly
attributable to (i) an increase in the shipment of solar
modules in the second quarter of 2019, and (ii) a decrease
of solar module cost in the second quarter of 2019, which were
partially offset by a decline in the average selling price of solar
modules in the second quarter of 2019.
Gross margin was 16.5% in the second quarter of 2019, compared
with 16.6% in the first quarter of 2019 and 12.0% in the second
quarter of 2018. The year-over-year increase was mainly
attributable to a decrease in solar module cost in the second
quarter of 2019, which was partially offset by a decline in the
average selling price of solar modules in the second quarter of
2019.
Income from Operations and Operating Margin
Income from operations in the second quarter of 2019 was
RMB260.3 million (US$37.9 million), compared with RMB235.7 million in the first quarter of 2019 and
RMB94.6 million in the second quarter
of 2018. Operating margin in the second quarter of 2019 was 3.8%,
compared with 4.0% in the first quarter of 2019 and 1.6% in the
second quarter of 2018.
Total operating expenses in the second quarter of 2019 were
RMB883.6 million (US$128.7 million), an increase of 21.3% from
RMB728.6 million in the first quarter
of 2019 and an increase of 39.6% from RMB633.0 million in the second quarter of 2018.
The sequential increase was mainly due to an increase in shipping
costs associated with an increase in solar module shipments in the
second quarter of 2019. The year-over-year increase was primarily
due to an increase in shipping costs in the second quarter of
2019.
Total operating expenses accounted for 12.8% of total revenues
in the second quarter of 2019, compared to 12.5% in the first
quarter of 2019 and 10.4% in the second quarter of 2018. The
sequential increase of operating expenses as a percentage of
total revenue was primarily due to the increase
in shipping costs as a percentage of total revenue
associated with a higher percentage of shipments to
overseas markets in the second quarter of 2019.
Interest Expense, Net
Net interest expense in the second quarter of 2019 was
RMB116.8 million (US$17.0 million), an increase of 21.5%
from RMB96.1 million in the first
quarter of 2019 and an increase of 44.8% from RMB80.6 million in the second quarter of 2018.
The sequential 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.
The year-over-year increase was mainly due to an increase in
borrowings.
Exchange (Loss)/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 RMB45.9 million (US$6.7 million) in the second quarter of
2019, compared to a net exchange loss of RMB62.9 million in the first quarter of 2019 and
a net exchange gain of RMB20.8
million in the second quarter of 2018. The Company bought
foreign exchange forward contracts and foreign exchange options
from several banks for the purpose of reducing exchange rate risk
exposure. The sequential change was primarily due to the
appreciation of the US dollar against the RMB 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. The Company recorded a loss arising from change in
fair value of interest rate swap of RMB46.1 million (US$6.7 million) in the second quarter of
2019, compared to a loss of RMB30.2
million in the first quarter of 2019. The loss arising
from change in fair value of interest swap was primarily
due to a continuous decrease in long-term interest
rates. 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 loss from a change in fair value of the Notes of
RMB118.6 million (US$17.3 million) primarily due to the increase in
the stock price of the Company in the second quarter of 2019 and
other comprehensive income resulted from a change in the
instrument-specific credit risk of RMB
5.5million (US$ 0.8
million).
The Notes grant each holder the right, at such holder's option,
to require the Company to repurchase for cash on June 1, 2021 (the "Repurchase Date") all of such
holder's Notes, or any portion thereof that is an integral multiple
of US$1,000 principal amount, at a
repurchase price that is equal to 100% of the outstanding principal
amount of the Notes to be repurchased, plus accrued and unpaid
interest to, but excluding, the Repurchase Date. The holders
exercising such option must deliver a repurchase notice within the
prescribed period as provided in the Notes indenture. If a
repurchase notice is not given within the prescribed period, the
Company will not be obligated to repurchase the relevant Notes. The
Notes also grant each holder a conversion right, at such holder's
option, at any time prior to the close of business on the third
Business Day immediately preceding the Maturity Date, to convert
all or any portion of such Note into the Company's ADSs at the
applicable conversion rate.
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 transactions as freestanding derivative assets
in the consolidated balance sheets, which is marked to market at
each reporting period. The Company recorded a gain from a change in
fair value of the call option of RMB73.5
million (US$10.7 million) in
the second quarter of 2019.
Equity in (Loss)/Income of
Affiliated Companies
The Company indirectly holds a 20% equity interest in Sweihan PV
Power Company P.J.S.C, a developer and operator of solar power
projects in Dubai, and accounts
for its investment using the equity method. The Company also holds
a 30% equity interest in Jiangsu Jinko-Tiansheng Co., Ltd, which
processes and assembles PV modules as an OEM
manufacturer, and accounts for its investments using the equity
method. The Company recorded equity in loss of affiliated
companies of RMB28.6 million
(US$4.2 million) in the second
quarter of 2019, compared with a loss of RMB23.7 million in the first quarter of 2019 and
an income of RMB28.0 million in the
second quarter of 2018. The loss was primarily arising from
change in fair value of interest rate swap agreements purchased by
Sweihan PV Power Company P.J.S.C due to a continuous decrease
in long-term interest rates. Hedge accounting was not
applied for the derivative.
Income Tax Benefit, Net
The Company recorded an income tax benefit of RMB55.9 million (US$8.1 million) in the second quarter of
2019, compared with an income tax benefit of RMB4.3 million in the first quarter of 2019 and
an income tax benefit of RMB10.0
million in the second quarter of 2018.
The sequential increase was mainly due to additional 2018 income
tax deduction for R&D costs approved by the local tax bureau in
the second quarter of 2019.
Net Income and Earnings per Share
Net income attributable to the Company's ordinary shareholders
was RMB125.4 million
(US$18.3 million) in the second
quarter of 2019, compared with RMB40.2
million in the first quarter of 2019 and RMB99.0 million in the second quarter of
2018.
Basic and diluted earnings per ordinary share
were RMB0.753(US$0.110) and
RMB0.315 (US$0.046),
respectively, during the second quarter of 2019. This translates
into basic and diluted earnings per ADS of RMB3.012 (US$0.440) and RMB1.260 (US$0.184), respectively.
Non-GAAP net income attributable to the Company's ordinary
shareholders in the second quarter of 2019 was RMB202.9 million (US$29.6 million), compared with RMB33.3 million in the first quarter of 2019 and
RMB106.7 million in the second
quarter of 2018.
Non-GAAP basic and diluted earnings per ordinary share
were both RMB1.218 (US$0.177) during the second
quarter of 2019. This translates into non-GAAP basic and diluted
earnings per ADS of RMB4.872
(US$0.708).
Financial Position
As of June 30, 2019, the Company
had RMB4.81 billion (US$701.1 million) in cash and cash
equivalents and restricted cash, compared with RMB4.36 billion as of March 31, 2019.
As of June 30, 2019, the Company's
accounts receivables due from third parties were RMB4.94 billion (US$719.4 million), compared with
RMB5.20 billion as of March 31,
2019.
As of June 30, 2019, the Company's
inventories were RMB6.63 billion
(US$966.3 million), compared
with RMB6.48 billion as of
March 31, 2019.
As of June 30, 2019, the Company's
total interest-bearing debts were RMB13.34
billion (US$1.94 billion), of which RMB2.16 billion (US$314.0 million) was related to the
Company's overseas downstream solar projects, compared with
RMB12.04 billion, of which
RMB1.74 billion was related to the
Company's overseas downstream solar projects, as of
March 31, 2019. The increase of interest-bearing debts was
mainly due to (i) issuance of additional convertible senior notes,
and (ii) an increase in borrowings.
Second Quarter 2019 Operational Highlights
Solar Module Shipments
Total solar module shipments in the second quarter of 2019 were
3,386 MW.
Solar Products Production Capacity
As of June 30, 2019, the Company's
in-house annual silicon wafer, solar cell and solar module
production capacity was 10.5 GW (including 6.5 GW of mono wafers),
7.4 GW (including 5.8 GW of PERC cells) and 12.6 GW,
respectively.
JinkoSolar expects its annual silicon wafer, solar cell and
solar module production capacity to reach 15.0 GW (including
11.5 GW of mono wafers), 10.5 GW (including 9.7 GW of
PERC cells) and 16.0 GW, respectively, by the end of 2019.
Recent Business Developments
- In June 2019, JinkoSolar Japan
K.K., a subsidiary of JinkoSolar, upsized a two-year JPY5.3 billion syndicated loan signed in
June 2018 to JPY6.7 billion during its annual review in
June 2019.
- In July 2019, the world's largest
solar plant of 1,177MWp, which was jointly developed by JinkoSolar,
Japan's Marubeni Corp. and
Emirates Water and Electricity Company (EWEC), started commercial
operations as scheduled at Sweihan in Abu
Dhabi. The AED3.2 billion project used highly-efficient mono
panels, all of which were supplied by JinkoSolar which hit another
record at the time of bid submission.
- In July 2019, JinkoSolar supplied
I+D Energias with 7.8MW of solar modules which were installed at
two PV power plants in Hungary.
- In July 2019, JinkoSolar supplied
95 MW of highly-efficient solar panels to Vena Energy Australia, an
independent power producer with shareholders including Global
Infrastructure Partners (GIP) and China Investment Corp., (CIC),
for use in the Tailem Bend Solar Project.
- In July 2019, JinkoSolar was
recognized for augmenting solar PV efficiency in a cost-effective
manner with the Frost & Sullivan 2019 Global Solar PV
Technology Leadership Award
- In July 2019, JinkoSolar was
ranked 340th on the 2019 Fortune China 500 and first
among solar module manufacturers. This marks the fifth consecutive
year that the Company has been included in the Fortune China 500
list.
- In August 2019, JinkoSolar was
one of only four PV module suppliers to receive a "AA" bankability
rating from PV-Tech & Solar Media, Ltd., a leading global
source of in-depth news and research on the photovoltaic industry.
JinkoSolar is the only PV module supplier to have AA-Ratings for
the past 12 consecutive quarters.
Operations and Business Outlook
Third Quarter and Full Year 2019 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 2019, the Company expects total solar
module shipments to be in the range of 3.2 GW to 3.5 GW. Total
revenue for the third quarter is expected to be in the range of
US$ 980 million to US$ 1.07
billion. Gross margin for the third quarter is expected to be
between 18% and 20%.
For the full year 2019, the Company estimates total solar module
shipments to be in the range of 14.0 GW to 15.0 GW.
Conference Call Information
JinkoSolar's management will host an earnings conference call on
Friday, August 30, 2019 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:
|
80647256#
|
|
|
|
|
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 6, 2019. The dial-in
details for the replay are as follows:
International:
|
+61 2 8325
2405
|
|
U.S.:
|
+1 646 982
0473
|
|
Passcode:
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319322163#
|
|
|
|
|
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 10.5 GW for
silicon wafers, 7.4 GW for solar cells, and 12.6 GW for
solar modules, as of June 30,
2019.
JinkoSolar has over 13,500 employees across its 7 productions
facilities globally, 15 oversea subsidiaries in Japan, Korea, Singapore, India, Turkey, Germany, Italy, Switzerland, United
States, Canada,
Mexico, Brazil, Chile, Australia and United
Arab Emirates, and global sales teams in China, United
Kingdom, France,
Netherlands, Spain, Bulgaria, Greece, Romania, Ukraine, Jordan, Saudi
Arabia, Tunisia, Egypt, Morocco, Nigeria, Kenya, South
Africa, Costa Rica,
Colombia, Panama and Argentina.
To find out more, please see: www.jinkosolar.com
Use of Non-GAAP Financial Measures
To supplement its consolidated financial results presented in
accordance with United States Generally Accepted Accounting
Principles ("GAAP"), JinkoSolar uses certain non-GAAP financial
measures including, non-GAAP net income, non-GAAP earnings per
Share, and non-GAAP earnings per ADS, which are adjusted from the
comparable GAAP results to exclude certain expenses or incremental
ordinary shares relating to share-based compensation and,
convertible senior notes:
- Non-GAAP net income is adjusted to exclude the expenses
relating to issuance cost of convertible senior notes, change in
fair value of convertible senior notes and call option, interest
expenses of convertible senior notes, exchange gain on the
convertible senior notes, and stock-based compensation; given these
Non-GAAP net income adjustments above are either related to the
Company or its subsidiaries incorporated in Cayman Islands, which are not subject to tax
exposures, or related to those subsidiaries with tax loss positions
which result in no tax impacts, therefore no tax adjustment is
needed in conjunction with these Non-GAAP net income adjustments;
and
- Non-GAAP earnings per Share and non-GAAP earnings per ADS are
adjusted to exclude 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, exchange gain on the convertible senior notes, and
stock-based compensation.
The Company believes that the use of non-GAAP information is
useful for analysts and investors to evaluate JinkoSolar's current
and future performances based on a more meaningful comparison of
net income and diluted net income per ADS when compared with its
peers and historical results from prior periods. These measures are
not intended to represent or substitute numbers as measured under
GAAP. The submission of non-GAAP numbers is voluntary and should be
reviewed together with GAAP results.
Currency Convenience Translation
The conversion of Renminbi into U.S. dollars in this release,
made solely for the convenience of the readers, is based on the
noon buying rate in the city of New
York for cable transfers of Renminbi as certified for
customs purposes by the Federal Reserve Bank of New York as of June 28,
2019, which was RMB6.8650 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
|
|
For the six months
ended
|
|
|
June 30,
2018
|
|
March 31,
2019
|
|
June 30,
2019
|
|
June 30,
2018
|
|
June 30,
2019
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
USD
|
|
RMB
|
|
RMB
|
|
USD
|
|
Revenues from
third parties
|
5,618,862
|
|
5,677,227
|
|
6,912,301
|
|
1,006,890
|
|
9,290,207
|
|
12,589,528
|
|
1,833,872
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from
related parties
|
441,769
|
|
144,821
|
|
725
|
|
107
|
|
1,337,260
|
|
145,546
|
|
21,201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
6,060,631
|
|
5,822,048
|
|
6,913,026
|
|
1,006,997
|
|
10,627,467
|
|
12,735,074
|
|
1,855,073
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
(5,333,000)
|
|
(4,857,711)
|
|
(5,769,143)
|
|
(840,370)
|
|
(9,243,775)
|
|
(10,626,854)
|
|
(1,547,976)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
727,631
|
|
964,337
|
|
1,143,883
|
|
166,627
|
|
1,383,692
|
|
2,108,220
|
|
307,097
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
and marketing
|
(366,077)
|
|
(459,314)
|
|
(561,959)
|
|
(81,859)
|
|
(679,974)
|
|
(1,021,273)
|
|
(148,765)
|
|
General
and administrative
|
(170,509)
|
|
(191,902)
|
|
(248,376)
|
|
(36,180)
|
|
(301,340)
|
|
(440,278)
|
|
(64,134)
|
|
Research
and development
|
(81,907)
|
|
(77,378)
|
|
(73,258)
|
|
(10,671)
|
|
(168,289)
|
|
(150,636)
|
|
(21,943)
|
|
Impairment of long-lived assets
|
(14,548)
|
|
-
|
|
-
|
|
-
|
|
(14,548)
|
|
-
|
|
-
|
|
Total operating
expenses
|
(633,041)
|
|
(728,594)
|
|
(883,593)
|
|
(128,710)
|
|
(1,164,151)
|
|
(1,612,187)
|
|
(234,842)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
94,590
|
|
235,743
|
|
260,290
|
|
37,917
|
|
219,541
|
|
496,033
|
|
72,255
|
|
Interest
expenses, net
|
(80,636)
|
|
(96,110)
|
|
(116,754)
|
|
(17,007)
|
|
(166,047)
|
|
(212,864)
|
|
(31,007)
|
|
Subsidy
income
|
2,619
|
|
4,741
|
|
10,517
|
|
1,533
|
|
39,200
|
|
15,258
|
|
2,224
|
|
Exchange
gain/(loss)
|
42,389
|
|
(80,980)
|
|
87,487
|
|
12,744
|
|
(49,024)
|
|
6,507
|
|
948
|
|
Change in fair
value of interest rate swap
|
14,284
|
|
(30,199)
|
|
(46,118)
|
|
(6,718)
|
|
35,388
|
|
(76,317)
|
|
(11,117)
|
|
Change in fair
value of foreign exchange derivatives
|
(21,618)
|
|
18,114
|
|
(41,619)
|
|
(6,063)
|
|
(21,033)
|
|
(23,505)
|
|
(3,424)
|
|
Convertible
senior notes issuance costs
|
-
|
|
-
|
|
(18,646)
|
|
(2,716)
|
|
-
|
|
(18,646)
|
|
(2,716)
|
|
Change in fair
value of convertible senior notes and call option
|
-
|
|
-
|
|
(45,070)
|
|
(6,565)
|
|
-
|
|
(45,070)
|
|
(6,565)
|
|
Other income,
net
|
9,444
|
|
7,398
|
|
7,302
|
|
1,064
|
|
18,122
|
|
14,700
|
|
2,141
|
|
Loss from disposal of
subsidiaries
|
-
|
|
-
|
|
-
|
|
-
|
|
(9,425)
|
|
-
|
|
-
|
|
Income before
income taxes
|
61,072
|
|
58,707
|
|
97,389
|
|
14,189
|
|
66,722
|
|
156,096
|
|
22,739
|
|
Income tax
benefit
|
10,003
|
|
4,250
|
|
55,917
|
|
8,145
|
|
13,296
|
|
60,167
|
|
8,764
|
|
Equity in
(loss)/gain of affiliated companies
|
28,024
|
|
(23,709)
|
|
(28,621)
|
|
(4,169)
|
|
22,784
|
|
(52,330)
|
|
(7,623)
|
|
Net
income
|
99,099
|
|
39,248
|
|
124,685
|
|
18,165
|
|
102,802
|
|
163,933
|
|
23,880
|
|
Less: Net
(loss)/income attributable to non-controlling
interests
|
117
|
|
(939)
|
|
(725)
|
|
(106)
|
|
224
|
|
(1,664)
|
|
(242)
|
|
Net income
attributable to JinkoSolar
Holding Co., Ltd.'s ordinary shareholders
|
98,982
|
|
40,187
|
|
125,410
|
|
18,271
|
|
102,578
|
|
165,597
|
|
24,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to JinkoSolar Holding Co., Ltd.'s
ordinary shareholders per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
0.633
|
|
0.256
|
|
0.753
|
|
0.110
|
|
0.680
|
|
1.024
|
|
0.149
|
|
Diluted
|
0.628
|
|
0.254
|
|
0.315
|
|
0.046
|
|
0.672
|
|
0.571
|
|
0.083
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to JinkoSolar Holding Co., Ltd.'s
ordinary shareholders per ADS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
2.532
|
|
1.024
|
|
3.012
|
|
0.440
|
|
2.720
|
|
4.096
|
|
0.596
|
|
Diluted
|
2.512
|
|
1.016
|
|
1.260
|
|
0.184
|
|
2.688
|
|
2.284
|
|
0.332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average ordinary shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
156,457,441
|
|
156,888,381
|
|
166,605,808
|
|
166,605,808
|
|
150,894,845
|
|
161,670,693
|
|
161,670,693
|
|
Diluted
|
157,574,069
|
|
158,017,104
|
|
165,385,410
|
|
165,385,410
|
|
152,579,390
|
|
161,633,544
|
|
161,633,544
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average ADS outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
39,114,360
|
|
39,222,095
|
|
41,651,452
|
|
41,651,452
|
|
37,723,711
|
|
40,417,673
|
|
40,417,673
|
|
Diluted
|
39,393,517
|
|
39,504,276
|
|
41,346,352
|
|
41,346,352
|
|
38,144,848
|
|
40,408,386
|
|
40,408,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
99,099
|
|
39,248
|
|
124,685
|
|
18,165
|
|
102,802
|
|
163,933
|
|
23,880
|
|
Other
comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-Foreign
currency translation adjustments
|
47,966
|
|
(17,459)
|
|
48,233
|
|
7,029
|
|
14,615
|
|
30,774
|
|
4,486
|
|
-Change
in the instrument-specific credit risk
|
-
|
|
-
|
|
5,546
|
|
805
|
|
-
|
|
5,546
|
|
805
|
|
Comprehensive
income
|
147,065
|
|
21,789
|
|
178,464
|
|
25,999
|
|
117,417
|
|
200,253
|
|
29,171
|
|
Less:
Comprehensive (loss)/income attributable to non-controlling
interests
|
117
|
|
(939)
|
|
(725)
|
|
(106)
|
|
224
|
|
(1,664)
|
|
(242)
|
|
Comprehensive
income attributable to JinkoSolar Holding Co., Ltd.'s ordinary
shareholders
|
146,948
|
|
22,728
|
|
179,189
|
|
26,105
|
|
117,193
|
|
201,917
|
|
29,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
98,982
|
|
40,187
|
|
125,410
|
|
18,271
|
|
102,578
|
|
165,597
|
|
24,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible
senior notes issuance costs
|
-
|
|
-
|
|
18,646
|
|
2,716
|
|
-
|
|
18,646
|
|
2,716
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in fair
value of convertible senior notes and call option
|
-
|
|
-
|
|
45,070
|
|
6,565
|
|
-
|
|
45,070
|
|
6,565
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.5% of
interest expense of convertible senior notes
|
1
|
|
-
|
|
2,914
|
|
424
|
|
1
|
|
2,914
|
|
424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange
(gain)/loss on convertible senior notes and call
option
|
3
|
|
-
|
|
(721)
|
|
(105)
|
|
1
|
|
(721)
|
|
(105)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense/(benefit)
|
7,700
|
|
(6,924)
|
|
11,587
|
|
1,688
|
|
15,076
|
|
4,663
|
|
679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
income attributable to ordinary shareholders
|
106,686
|
|
33,263
|
|
202,906
|
|
29,559
|
|
117,656
|
|
236,169
|
|
34,401
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
earnings per share attributable to ordinary shareholders
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
0.682
|
|
0.212
|
|
1.218
|
|
0.177
|
|
0.780
|
|
1.461
|
|
0.213
|
|
Diluted
|
0.677
|
|
0.210
|
|
1.218
|
|
0.177
|
|
0.771
|
|
1.461
|
|
0.213
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
earnings per ADS attributable to ordinary shareholders
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
2.728
|
|
0.848
|
|
4.872
|
|
0.708
|
|
3.120
|
|
5.844
|
|
0.852
|
|
Diluted
|
2.708
|
|
0.840
|
|
4.872
|
|
0.708
|
|
3.084
|
|
5.844
|
|
0.852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
weighted average ordinary shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
156,457,441
|
|
156,888,381
|
|
166,605,808
|
|
166,605,808
|
|
150,894,845
|
|
161,670,693
|
|
161,670,693
|
|
Diluted
|
157,574,069
|
|
158,017,104
|
|
166,605,808
|
|
166,605,808
|
|
152,579,390
|
|
161,670,693
|
|
161,670,693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
weighted average ADS outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
39,114,360
|
|
39,222,095
|
|
41,651,452
|
|
41,651,452
|
|
37,723,711
|
|
40,417,673
|
|
40,417,673
|
|
Diluted
|
39,393,517
|
|
39,504,276
|
|
41,651,452
|
|
41,651,452
|
|
38,144,848
|
|
40,417,673
|
|
40,417,673
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JINKOSOLAR HOLDING
CO., LTD.
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
|
|
December 31,
2018
|
|
June 30,
2019
|
|
RMB
|
|
RMB
|
|
USD
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
3,104,917
|
|
3,727,162
|
|
542,922
|
Restricted
cash
|
377,111
|
|
1,085,831
|
|
158,169
|
Restricted
short-term investments
|
4,058,419
|
|
5,797,915
|
|
844,562
|
Accounts
receivable, net - related parties
|
675,768
|
|
617,944
|
|
90,014
|
Accounts
receivable, net - third parties
|
5,436,371
|
|
4,938,439
|
|
719,365
|
Notes
receivable, net - third parties
|
1,010,469
|
|
1,349,771
|
|
196,616
|
Advances to
suppliers, net - third parties
|
665,221
|
|
1,966,289
|
|
286,422
|
Inventories,
net
|
5,743,328
|
|
6,633,699
|
|
966,307
|
Forward
contract receivables
|
1,192
|
|
8,692
|
|
1,266
|
Other
receivables - related parties
|
67,730
|
|
52,570
|
|
7,658
|
Derviatvie
assets
|
847
|
|
-
|
|
-
|
Prepayments
and other current assets
|
1,712,889
|
|
2,179,229
|
|
317,439
|
Total current
assets
|
22,854,262
|
|
28,357,541
|
|
4,130,740
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
Restricted
cash
|
921,300
|
|
1,284,710
|
|
187,139
|
Project
Assets
|
1,770,621
|
|
1,904,362
|
|
277,402
|
Long-term
investments
|
25,531
|
|
276,116
|
|
40,221
|
Property,
plant and equipment, net
|
8,275,900
|
|
7,858,876
|
|
1,144,774
|
Land use
rights, net
|
574,945
|
|
604,113
|
|
87,999
|
Intangible
assets, net
|
35,361
|
|
36,285
|
|
5,286
|
Financing
lease right-of-use assets, net*
|
-
|
|
693,830
|
|
101,068
|
Operating
lease right-of-use assets, net*
|
-
|
|
261,680
|
|
38,118
|
Deferred tax
assets
|
338,069
|
|
331,508
|
|
48,290
|
Call
Option-concurrent with issuance of convertible
senior notes
|
-
|
|
279,585
|
|
40,726
|
Other assets -
related parties
|
144,984
|
|
123,153
|
|
17,939
|
Other assets -
third parties
|
912,210
|
|
1,732,532
|
|
252,372
|
Total non-current
assets
|
12,998,921
|
|
15,386,750
|
|
2,241,334
|
|
|
|
|
|
|
Total
assets
|
35,853,183
|
|
43,744,291
|
|
6,372,074
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable - related parties
|
698
|
|
-
|
|
-
|
Accounts
payable - third parties
|
5,327,094
|
|
5,519,258
|
|
803,971
|
Notes payable
- related parties
|
35,000
|
|
-
|
|
-
|
Notes payable
- third parties
|
6,036,577
|
|
7,902,821
|
|
1,151,176
|
Accrued
payroll and welfare expenses
|
810,921
|
|
760,972
|
|
110,848
|
Advances from
related parties
|
910
|
|
-
|
|
-
|
Advances
from third parties
|
2,395,229
|
|
3,353,719
|
|
488,524
|
Income tax
payable
|
70,240
|
|
8,180
|
|
1,192
|
Other payables
and accruals
|
2,281,025
|
|
2,302,461
|
|
335,393
|
Other payables
due to related parties
|
20,819
|
|
23,968
|
|
3,491
|
Forward
contract payables
|
9,464
|
|
38,316
|
|
5,581
|
Convertible
senior notes - current
|
69
|
|
-
|
|
-
|
Financing
lease liabilities - current*
|
-
|
|
272,095
|
|
39,635
|
Operating
lease liabilities - current*
|
-
|
|
29,961
|
|
4,364
|
Derivative
liability - current
|
12,786
|
|
89,096
|
|
12,978
|
Bond payable
and accrued interests
|
10,318
|
|
321,434
|
|
46,822
|
Short-term
borrowings from third parties,
including current portion of long-term
bank
borrowings
|
7,103,399
|
|
9,160,787
|
|
1,334,419
|
Guarantee
liabilities to related parties
|
26,639
|
|
26,891
|
|
3,917
|
Total current
liabilities
|
24,141,188
|
|
29,809,959
|
|
4,342,311
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
Long-term
borrowings
|
1,954,831
|
|
2,408,501
|
|
350,838
|
Convertible
senior notes
|
-
|
|
697,418
|
|
101,590
|
Long-term
payables
|
338,412
|
|
-
|
|
-
|
Bond
payables
|
299,475
|
|
-
|
|
-
|
Accrued
warranty costs - non current
|
573,641
|
|
560,258
|
|
81,611
|
Financing
lease liabilities*
|
-
|
|
212,606
|
|
30,969
|
Operating
lease liabilities*
|
-
|
|
232,480
|
|
33,865
|
Deferred tax
liability
|
25,893
|
|
25,893
|
|
3,772
|
Other
non-current liabilities
|
-
|
|
20,390
|
|
2,970
|
Guarantee
liabilities to related parties
- non current
|
65,765
|
|
46,931
|
|
6,836
|
Total non-current
liabilities
|
3,258,017
|
|
4,204,477
|
|
612,451
|
|
|
|
|
|
|
Total
liabilities
|
27,399,205
|
|
34,014,436
|
|
4,954,762
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
Ordinary shares
(US$0.00002 par value, 500,000,000
shares authorized, 156,864,737 and 176,052,237
shares issued and outstanding as of December 31,
2018 and June 30, 2019, respectively)
|
22
|
|
24
|
|
3
|
Additional paid-in
capital
|
4,010,740
|
|
4,515,582
|
|
657,769
|
Statutory
reserves
|
570,176
|
|
570,176
|
|
83,055
|
Accumulated other
comprehensive income
|
70,301
|
|
106,621
|
|
15,530
|
Treasury stock, at
cost; 1,723,200 ordinary shares
as of December 31, 2018 and June 30, 2019
|
(13,876)
|
|
(13,876)
|
|
(2,021)
|
Accumulated retained
earnings
|
3,202,528
|
|
3,368,125
|
|
490,623
|
|
|
|
|
|
|
Total JinkoSolar
Holding Co., Ltd. shareholders' equity
|
7,839,891
|
|
8,546,652
|
|
1,244,959
|
|
|
|
|
|
|
Non-controlling
interests
|
614,087
|
|
1,183,203
|
|
172,353
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
35,853,183
|
|
43,744,291
|
|
6,372,074
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/jinkosolar-announces-second-quarter-2019-financial-results-300909647.html
SOURCE JinkoSolar Holding Co., Ltd.