UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Month of August, 2019
Commission File Number: 001-34615
JinkoSolar Holding Co., Ltd.
(Translation of registrant’s name into English)
1 Jingke Road
Shangrao Economic Development Zone
Jiangxi Province, 334100
People’s Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
| Form 20-F x | Form 40-F ¨ |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1).
| Yes ¨ | No x |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7).
| Yes ¨ | No x |
EXHIBIT INDEX
|
Number |
Description of Document | |
| 99.1 | Press Release |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| JinkoSolar Holding Co., Ltd. | ||
| By: | /s/ Haiyun (Charlie) Cao | |
| Name: | Haiyun (Charlie) Cao | |
| Title: | Chief Financial Officer | |
Date: August 30, 2019
Exhibit 99.1
JinkoSolar Announces Second Quarter 2019 Financial Results
SHANGHAI, China, August 30, 2019 -- 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: | 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 | |||||||||