JinkoSolar Announces Third Quarter 2012 Results
11/20/2012
Third Quarter 2012 Highlights
- Total solar product shipments were 335.2 megawatts ("MW"), of which 280.0MW were solar modules, 28.6MW were silicon wafers, and 26.6MW were solar cells. This represents an increase of 11.0% from 302.1 MW in the second quarter of 2012, and an increase of 30.1% from 257.7 MW in the third quarter of 2011.
- Total revenues were
RMB1.4 billion (US$221.1 million ), representing an increase of 12.2% from the second quarter of 2012, and a decrease of 22.0% from the third quarter of 2011. - Gross margin was 9.9%, compared with 8.4% in the second quarter of 2012 and 3.7% in the third quarter of 2011.
- In-house gross margin[1] was 12.6%, compared with 11.2% in the second quarter of 2012 and 18.4% in the third quarter of 2011.
- Loss from operations was
RMB51.5 million (US$8.2 million ), compared with a loss from operations ofRMB82.5 million in the second quarter of 2012, and a loss from operations ofRMB197.3 million in the third quarter of 2011. - Net loss was
RMB54.8 million (US$8.7 million ), compared with a net loss ofRMB310.5 million in the second quarter of 2012, and net income ofRMB68.1 million in the third quarter of 2011. - Diluted loss per share was
RMB0.62 (US$0.10) , compared with diluted loss per share ofRMB3.50 in the second quarter of 2012, and diluted loss per share ofRMB2.97 in the third quarter of 2011. - Diluted loss per American Depositary Share ("ADS") was
RMB2.48 (US$0.39) , compared with diluted loss per ADS ofRMB14.00 in the second quarter of 2012, and diluted loss per ADS ofRMB11.88 in the third quarter of 2011. Each ADS represents four ordinary shares. - Non-GAAP net loss[2] in the third quarter of 2012 was
RMB27.8 million (US$4.4 million ), compared with non-GAAP net loss ofRMB297.6 million in the second quarter of 2012, and non-GAAP net loss ofRMB247.9 million in the third quarter of 2011. - Non-GAAP basic and diluted loss per share in the third quarter of 2012 was
RMB0.31 (US$0.05) .Non-GAAP basic and diluted loss per ADS wasRMB1.24 (US$0.20) in the third quarter of 2012.
(1) JinkoSolar defines "in-house gross margin" as the gross margin of PV modules produced using the Company's in-house produced silicon wafers and solar cells. |
(2) JinkoSolar adjusts net loss to exclude 1) the expenses related to the issuance of the Company's convertible senior notes, 2) changes in the fair value of the convertible senior notes and capped call options, 3) interest expenses on the convertible senior notes, and 4) the exchange gains on the convertible senior notes and capped call options. |
"We are encouraged by our strong performance this past quarter as we continue to benefit from our strategic focus on cost reduction and geographical diversification with strong sales in
"We continue to deepen our relationships with customers across the globe with total module shipments of 280 MW during the third quarter of 2012. The strong momentum we have picked up in
"Our downstream business remains on track and looks to be increasingly lucrative for us as module prices and construction expenses continue to drop along with the assurances that stable feed-in-tariffs provide. Our project development and EPC business pipeline is showing increasing strength with three projects in
"As we look forward, solar demand over the long term remains promising and we believe we are particularly well positioned to lead the industry in recovery given our strong balance sheet, competitive cost structure, efficient assets, and wide-reaching global presence. Our strong client relationships and reputation have enabled us to increase repeat business opportunities for us. We plan on continuing to manage our business prudently, adapt our strategy in line with market developments, and leverage our industry leading technology and cost structure to seize market opportunities and drive future growth," concluded Mr.
Third Quarter 2012 Financial Results
Total Revenues
Total revenues in the third quarter of 2012 were
Gross Profit and Gross Margin
Gross profit in the third quarter of 2012 was
Gross margin was 9.9% in the third quarter of 2012, compared with 8.4% in the second quarter of 2012 and 3.7% in the third quarter of 2011. In-house gross margin relating to the Company's in-house silicon wafer, solar cell and solar module production was 12.6% in the third quarter of 2012, compared with 11.2% in the second quarter of 2012 and 18.4% in the third quarter of 2011.
Income / (Loss) from Operations and Operating Margin
Loss from operations in the third quarter of 2012 was
Total operating expenses in the third quarter of 2012 were
The Company's operating expenses represented 13.6% of its total revenues in the third quarter of 2012, representing a decrease from 15.0% in the second quarter of 2012, and a decrease from 14.8% in the third quarter of 2011.
Interest Expense, Net
Net interest expense in the third quarter of 2012 was
Foreign Currency Exchange Gain / (Loss)
Due to the appreciation of the Euro against the RMB during the third quarter of 2012, the Company recorded a foreign currency exchange gain of
Change in Fair Value of Convertible Senior Notes and Capped Call Options
The Company recognized a loss from change in fair value of convertible senior notes and capped call options of
Income Tax (Expense)/ Benefit
The Company recognized an income tax expense of
Net Income / (Loss) and Earnings / (Loss) per Share and per ADS
Net loss in the third quarter of 2012 was
Basic and diluted loss per share was
Non-GAAP net loss in the third quarter of 2012 was
Non-GAAP basic and diluted loss per share in the third quarter of 2012 was
Financial Position
As of
Capital expenditures in the third quarter of 2012 were
As of
As of
Third Quarter 2012 Operational Highlights
Solar Product Shipments
Total solar product shipments in the third quarter of 2012 were 335.2 MW, including 28.6MW of silicon wafers, 26.6MW of solar cells and 280.0MW of solar modules. By comparison, total shipments for the second quarter of 2012 were 302.1 MW, consisting of 63.3 MW of silicon wafers, 15.8 MW of solar cells and 223.0 MW of solar modules.
Capacity Expansion of Solar Products
As of
Recent Business Developments
- In
August 2012 ,JinkoSolar won a bid fromChina Guangdong Nuclear Solar Energy Development Co., Ltd. to supply 30 MW of PV modules for a PV power plant project planned in Hami City,Xinjiang Province ,China . - In
August 2012 ,JinkoSolar 's testing facility received certification from China National Accreditation Service for its industry leading quality controls. - In
August 2012 ,JinkoSolar was selected to deliver a chrome mine located inLimpopo Province ,South Africa with the first ever off-grid utility scale PV system in South Africa. The 1 MW plant will produce approximately 1.8 GWh of electricity per year and will effectively reduce the mine's daytime diesel dependency for the next 20 to 30 years. - In
September 2012 ,JinkoSolar won a bid from China Power International New Energy Holding Ltd. to supply 40 MW of PV modules for two PV power plant projects in Baiyin and Wuwei cities in Gansu Province, China. JinkoSolar will deliver 163,200 high-efficiency solar panels to the two projects. - In
September 2012 ,JinkoSolar signed a cooperative agreement with China Jiangxi Corporation for International Economic & Technical Co, Ltd. to provide technical support for its 50MW solar power project development in Kenya. According to the agreement, JinkoSolar has also been appointed as the preferred module supplier for the project. The project is planned to occupy 81 hectare and is expected to be one of the largest grid connected solar power plants in Africa. - In
October 2012 ,JinkoSolar won a bid from China Three Gorges New Energy Corp., a wholly-owned subsidiary of China Three Gorges Corporation, to supply 50 MW of solar modules for a PV power plant in Gansu Province, China.
Operations and Business Outlook
Fourth Quarter 2012 Guidance
Based on current operating and market conditions,
Conference Call Information
Dial-in details for the earnings conference call are as follows:
Hong Kong / International: |
+852-2475-0994 |
|
U.S. Toll Free: |
+1-866-519-4004 |
|
Passcode: |
JinkoSolar |
|
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 after the conclusion of the conference call through 12:00 a.m. U.S. Eastern Standard Time, November 28, 2012. The dial-in details for the replay are as follows:
International: |
+61-2-8199-0299 |
|
Passcode: |
64800368 |
Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of
About
Use of Non-GAAP Financial Measures
To supplement its consolidated financial results presented in accordance with
- Non-GAAP net income (loss) is adjusted to exclude the expenses relating to the issuance of convertible senior notes, changes in fair value of convertible senior notes and capped call options, interest expenses of convertible senior notes and exchange gains on the convertible senior notes and capped call options;
- Non-GAAP earnings (loss) per share and non-GAAP earnings (loss) per ADS are adjusted to exclude the expenses relating to the issuance costs of convertible senior notes, changes in fair value of convertible senior notes and capped call options, interest expenses of convertible senior notes and exchange gains on the convertible senior notes and capped call options as well as incremental shares for assumed conversions of convertible senior notes; and
- Non-GAAP diluted weighted average ordinary shares outstanding are adjusted to exclude incremental shares for assumed conversions of convertible senior notes.
The Company believes that the use of non-GAAP information is useful for analysts and investors to evaluate
Exchange Rate Information
The U.S. dollars (US$) amounts disclosed in this press release are presented solely for the convenience of the readers. Translations of amounts from RMB into U.S. dollars for the convenience of the readers were calculated at the certified exchange rate of
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
For investor and media inquiries, please contact:
In
Tel: +86-21-6061-1792
Email: ir@jinkosolar.com
Christensen
Tel: +86-10-5826-4939
Email: carnell@christensenir.com
In theU.S.:
Christensen
Tel: +1-480-614-3003
Email: jbloker@christensenir.com
JINKOSOLAR HOLDING CO., LTD. |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||
(in thousands, except ADS and Share data)
|
|||||||
For the quarter ended |
|||||||
September 30, 2011 |
June 30, 2011 |
September 30, 2012 |
|||||
RMB |
RMB |
RMB |
USD |
||||
Revenues from third parties |
1,781,052 |
1,180,267 |
1,365,956 |
217,343 |
|||
Revenues from related parties |
- |
57,724 |
23,349 |
3,715 |
|||
Total revenues |
1,781,052 |
1,237,991 |
1,389,305 |
221,058 |
|||
Cost of revenues |
(1,715,011) |
(1,134,401) |
(1,251,910) |
(199,196) |
|||
Gross profit |
66,041 |
103,590 |
137,395 |
21,862 |
|||
Operating expenses: |
|||||||
Selling and marketing |
(73,933) |
(90,433) |
(90,420) |
(14,387) |
|||
General and administrative |
(184,136) |
(77,561) |
(81,545) |
(12,975) |
|||
Research and development |
(5,238) |
(18,107) |
(16,944) |
(2,696) |
|||
Total operating expenses |
(263,307) |
(186,101) |
(188,909) |
(30,058) |
|||
Loss from operations |
(197,266) |
(82,511) |
(51,514) |
(8,196) |
|||
Interest expenses, net |
(49,520) |
(54,828) |
(51,757) |
(8,235) |
|||
Subsidy income |
17,044 |
- |
- |
- |
|||
Exchange (loss)/gain |
(77,039) |
(124,976) |
49,069 |
7,808 |
|||
Other (expense)/income, net |
(3,725) |
(1,999) |
12,414 |
1,975 |
|||
Change in fair value of forward |
68,453 |
(53,198) |
(4,873) |
(775) |
|||
Change in fair value of convertible senior |
311,144 |
(3,266) |
(6,801) |
(1,082) |
|||
Income/(loss) before income taxes |
69,091 |
(320,778) |
(53,462) |
(8,505) |
|||
Income tax (expense)/benefit |
(986) |
10,290 |
(1,289) |
(205) |
|||
Net income/(loss) |
68,105 |
(310,488) |
(54,751) |
(8,710) |
|||
Less: Net loss/(income) attributable to non-controlling interests |
- |
(2) |
2 |
- |
|||
Net income/(loss) attributable to |
68,105 |
(310,486) |
(54,753) |
(8,710) |
|||
Net income/(loss) attributable to |
|||||||
Basic |
0.72 |
(3.50) |
(0.62) |
(0.10) |
|||
Diluted |
(2.97) |
(3.50) |
(0.62) |
(0.10) |
|||
Net income/(loss) attributable to |
|||||||
Basic |
2.86 |
(14.00) |
(2.48) |
(0.39) |
|||
Diluted |
(11.88) |
(14.00) |
(2.48) |
(0.39) |
|||
Weighted average ordinary shares |
|||||||
Basic |
95,115,055 |
88,740,778 |
88,740,778 |
88,740,778 |
|||
Diluted |
110,780,910 |
88,740,778 |
88,740,778 |
88,740,778 |
|||
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) |
|||||||
Net income/ (loss) |
68,105 |
(310,488) |
(54,751) |
(8,710) |
|||
Other comprehensive income: |
|||||||
-Foreign currency translation adjustments |
(683) |
(247) |
(609) |
(97) |
|||
Comprehensive income/ (loss) |
67,422 |
(310,735) |
(55,360) |
(8,807) |
|||
Less: comprehensive income/ (loss) attributable to non-controlling interest |
- |
(2) |
2 |
- |
|||
Comprehensive income/ (loss) attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders |
67,422 |
(310,733) |
(55,362) |
(8,807) |
|||
NON-GAAP RECONCILIATION |
|||||||
1. Non-GAAP earnings per share and non-GAAP earnings per ADS
|
|||||||
GAAP net income/(loss) attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders |
68,105 |
(310,486) |
(54,753) |
(8,710) |
|||
Change in fair value of convertible senior |
(311,144) |
3,266 |
6,801 |
1,082 |
|||
4% of interest expense of convertible |
7,982 |
7,746 |
6,192 |
985 |
|||
Exchange (loss)/gain |
(12,887) |
1,909 |
13,985 |
2,225 |
|||
Non-GAAP net income/(loss) attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders- |
(247,944) |
(297,565) |
(27,775) |
(4,418) |
|||
Non-GAAP net income/(loss) attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders per share - |
|||||||
Basic |
(2.61) |
(3.35) |
(0.31) |
(0.05) |
|||
Diluted |
(2.58) |
(3.35) |
(0.31) |
(0.05) |
|||
Non-GAAP net income attributable to |
|||||||
Basic |
(10.43) |
(13.40) |
(1.24) |
(0.20) |
|||
Diluted |
(10.33) |
(13.40) |
(1.24) |
(0.20) |
|||
Non-GAAP weighted average ordinary |
|||||||
Basic |
95,115,055 |
88,740,778 |
88,740,778 |
88,740,778 |
|||
Diluted |
95,966,098 |
88,740,778 |
88,740,778 |
88,740,778 |
JINKOSOLAR HOLDING CO., LTD. |
|||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(in thousands)
|
|||||
December 31, 2011 |
September 30, 2012 |
||||
RMB |
RMB |
USD |
|||
ASSETS |
|||||
Current assets: |
|||||
Cash and cash equivalents |
433,851 |
228,449 |
36,349 |
||
Restricted cash |
146,175 |
116,582 |
18,550 |
||
Short-term investments |
494,215 |
618,087 |
98,346 |
||
Accounts receivable, net - related parties |
31,010 |
140,588 |
22,370 |
||
Accounts receivable, net - third parties |
1,600,207 |
2,061,730 |
328,050 |
||
Notes receivable |
17,280 |
267 |
42 |
||
Advances to suppliers, net - related parties |
- |
1,662 |
264 |
||
Advances to suppliers, net - third parties |
208,104 |
191,897 |
30,534 |
||
Inventories |
798,075 |
852,585 |
135,658 |
||
Forward contract receivables |
64,955 |
10,751 |
1,711 |
||
Other receivables—related parties |
691 |
772 |
123 |
||
Project assets |
- |
351,557 |
55,938 |
||
Prepayments and other current assets |
813,910 |
438,748 |
69,810 |
||
Total current assets |
4,608,473 |
5,013,675 |
797,745 |
||
Non-current assets: |
|||||
Long term investment |
- |
7,200 |
1,146 |
||
Property, plant and equipment, net |
3,840,799 |
3,458,769 |
550,339 |
||
Land use rights, net |
368,043 |
367,416 |
58,461 |
||
Intangible assets, net |
3,656 |
6,415 |
1,021 |
||
Advances to suppliers to be utilized |
209,631 |
47,600 |
7,574 |
||
Capped call options |
16,408 |
10,792 |
1,717 |
||
Other assets |
129,388 |
145,573 |
23,163 |
||
Total assets |
9,176,398 |
9,057,440 |
1,441,166 |
||
LIABILITIES |
|||||
Current liabilities: |
|||||
Accounts payable - related parties |
35,888 |
142,765 |
22,716 |
||
Accounts payable - third parties |
340,999 |
1,289,783 |
205,223 |
||
Notes payable |
909,831 |
904,268 |
143,882 |
||
Accrued payroll and welfare expenses |
176,648 |
187,880 |
29,894 |
||
Advances from customers |
85,524 |
77,672 |
12,359 |
||
Income tax payables |
32,884 |
2 |
- |
||
Other payables and accruals |
813,027 |
959,283 |
152,636 |
||
Other payables due to a related party |
1,094 |
2,222 |
354 |
||
Forward contract payables |
5,524 |
33,927 |
5,398 |
||
Bonds payable and accrued interests |
1,039,635 |
308,460 |
49,080 |
||
Short-term borrowings from third parties, including current portion of long-term bank |
2,200,032 |
2,145,521 |
341,382 |
||
Guarantee liabilities |
1,500 |
1,500 |
239 |
||
Total current liabilities |
5,642,586 |
6,053,283 |
963,163 |
||
Non-current liabilities: |
|||||
Long-term borrowings |
155,500 |
275,000 |
43,756 |
||
Long-term payables |
0 |
164 |
26 |
||
Accrued warranty costs – non-current |
85,362 |
99,917 |
15,898 |
||
Convertible senior notes |
387,777 |
413,151 |
65,738 |
||
Forward contract payables-long term |
- |
14,515 |
2,310 |
||
Total long term liabilities |
628,639 |
802,747 |
127,728 |
||
Total liabilities |
6,271,225 |
6,856,030 |
1,090,891 |
||
SHAREHOLDERS' EQUITY |
|||||
Ordinary shares (US$0.00002 par value, 500,000,000 shares authorized, 89,435,058 and 88,740,778 shares issued and outstanding as of December 31, 2011 and September 30, 2012, respectively) |
13 |
13 |
2 |
||
Additional paid-in capital |
1,507,225 |
1,522,012 |
242,173 |
||
Statutory reserves |
178,984 |
178,984 |
28,479 |
||
Accumulated other comprehensive (loss)/income |
(135) |
(270) |
(43) |
||
Treasury stock, at cost; 1,028,920 and 1,723,200 of ordinary shares as of December 31, |
(8,354) |
(13,876) |
(2,208) |
||
Retained earnings |
1,217,457 |
495,947 |
78,912 |
||
Total JinkoSolar Holding Co., Ltd. shareholders' equity |
2,895,190 |
2,182,810 |
347,315 |
||
Non-controlling interests |
9,983 |
18,600 |
2,960 |
||
Total liabilities and shareholders' equity |
9,176,398 |
9,057,440 |
1,441,166 |
||
Note 1: The Condensed Consolidated Balance Sheet as of December 31, 2011 was derived from the audited consolidated financial statements. |
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