UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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 March 2016

 

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 o

 

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 o 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 o 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: March 1, 2016

 

 

Exhibit 99.1

 

 

JinkoSolar Announces Fourth Quarter and Full Year 2015 Financial Results

 

SHANGHAI, China, March 1, 2016 -- JinkoSolar Holding Co., Ltd. ("JinkoSolar" or the "Company") (NYSE: JKS), a global leader in the solar PV industry, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2015.

 

Fourth Quarter 2015 Highlights

 

·Total solar module shipments were 1,709.9 megawatts ("MW"), which includes 92.7 MW to be used in the Company’s downstream projects. Total solar module shipments increased 50.7% from 1,134.9 MW in the third quarter of 2015 and 58.6% from 1,078.3 MW in the fourth quarter of 2014.

 

·As of December 31, 2015, the Company had connected 1,006.6 MW worth of solar power projects.

 

·Total revenues were RMB6.07 billion (US$937.7 million), representing an increase of 49.9% from the third quarter of 2015 and an increase of 104.4% from the fourth quarter of 2014.

 

·Solar power projects generated electricity of 154.4 GWh, a 34.0% decrease from the third quarter of 2015 due to the seasonality and the curtailment of projects in China’s western regions, and an increase of 67.9% from the fourth quarter of 2014 due to the increase in number and capacity of solar power projects. Revenues generated from solar power projects were RMB136.3 million (US$21.0 million), representing a decrease of 33.8% from the third quarter of 2015 and an increase of 69.4% from the fourth quarter of 2014.

 

·Gross margin was 19.5%, compared with 21.3% in the third quarter of 2015 and 22.8% in the fourth quarter of 2014.

 

·Income from operations was RMB 482.7 million (US$74.5 million), compared with RMB384.0 million in the third quarter of 2015 and RMB236.6 million in the fourth quarter of 2014.

 

·Net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders was RMB 349.4 million (US$ 53.9 million), compared with RMB195.1 million in the third quarter of 2015 and RMB244.7 million in the fourth quarter of 2014.

 

·Diluted earnings per American depositary share ("ADS") were RMB10.92 (US$1.68), compared with RMB3.12 in the third quarter of 2015 and RMB3.12 in the fourth quarter of 2014.

 

·Non-GAAP net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders in the fourth quarter of 2015 was RMB 503.5 million (US$77.7 million), compared with RMB253.3 million in the third quarter of 2015 and RMB237.1 million in the fourth quarter of 2014.

 

·Non-GAAP basic and diluted earnings per ADS were RMB16.12 (US$2.48) and RMB15.72 (US$2.44), respectively, in the fourth quarter of 2015.

 

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Full Year 2015 Highlights

 

·Total solar module shipments were 4,511.6 MW, which include 304.0 MW to be used in the Company’s downstream solar power projects, an increase of 53.3% from 2,943.6 MW for the full year 2014.

 

·As of December 31, 2015, the Company has connected 1,006.6 MW worth of solar power projects.

 

·Total revenues were RMB16.08 billion (US$2.48 billion) for the full year 2015, an increase of 61.1% from RMB9.98 billion for the full year 2014.

 

·Revenues generated from solar power projects were RMB622.1 million (US$96.0 million), representing a 161.8% increase from RMB237.6 million in 2014.

 

·Gross margin was 20.3% for the full year 2015, compared with 22.4% for the full year 2014.

 

·Income from operations was RMB1.33 billion (US$205.9 million), compared RMB931.6 in the full year 2014.

 

·Net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders was RMB683.8 million (US$105.6 million) for the full year 2015, compared with RMB673.0 million for the full year 2014.

 

·Diluted earnings per ADS for the full year 2015 was RMB21.40 (US$3.32), compared with RMB15.44 for the full year 2014.

 

·Non-GAAP net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders for the full year 2015 was RMB1.15 billion (US$177.0 million), compared with RMB800.2 million for the full year 2014.

 

·Non-GAAP basic and diluted earnings per ADS for the full year 2015 were RMB36.80 (US$5.68) and RMB35.88 (US$5.52), respectively.

 

Mr. Kangping Chen, JinkoSolar’s Chief Executive Officer commented, “I am pleased to report a strong finish to the year with record high total module shipments and revenue. Total module shipments reached 1,709.9 MW during the quarter which resulted in total revenues of US$937.7 million, an increase of 104.4% over the same period in 2014. This translates into module shipments for the entire year of 4,511.6 MW, and total revenues of US$2.48 billion. Global demand remains strong, especially in key solar markets, which gives us good visibility for the entire year and leaves us very confident about our future prospects.”

 

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“Our downstream business remains a key focus of ours as we continue to work on building its long-term viability and sustainability. Electricity output during the fourth quarter of 2015 reached 154.4 GWh, down 34.0% sequentially while generating RMB136.3 million in revenue. We connected 161 MW of solar power projects to the grid during the fourth quarter which brings our total capacity of connected projects to 1,006.6 MW as of December 31, 2015. Aside from the effects of seasonality, power output was impacted by the curtailment of projects in China’s western regions and strong rainfall in eastern regions. A number of events beyond our control such as delays in subsidy catalog update and a prolonged grid-connection process made us fall short of our connection target for the year but we are confident in our ability to rapidly make up for this shortfall this year. We are now accelerating the spin-off process to maximize shareholder value.”

 

“The depreciation of the RMB over the past half year has caused considerable turmoil in the global markets. We have been increasing our hedge ratio to ensure that its impact on our business remains limited. Despite recent economic volatility, we remain positive on China’s long-term development given that we just entered the first year of the new national five-year plan which is expected to further deepen structural supply-side reforms.”

 

“Global demand for solar energy continues to grow steadily. We remain the market leader in China where growth and demand is expected to be strong and more balanced this year. With the extension of ITC, the biggest market uncertainty has been removed in the US which provides us with good visibility on market stability well into 2018. ASPs in major markets are expected to further stabilize during the first quarter of 2016 as demand grows. We remain cautious about the expansion of production capacity, but with demand growing sharply, we have plans in place to expand our manufacturing capacity to meet our minimum market demand expectations.”

 

“In conclusion, we finished off the year on a very strong footing with record shipments and revenues that demonstrate the efficiency of our operations and value that our customers all over the world place on our brand and products. Our focus on maintaining the highest quality standard in the industry allows us to provide our customers with reliable, high-efficiency PV products regardless of where they are based. I am confident about our growth prospects as we continue to deliver long-term value to our shareholders.”

 

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Fourth Quarter 2015 Financial Results

 

Total Revenues

 

Total revenues in the fourth quarter of 2015 were RMB6.07 billion (US$937.7 million), representing an increase of 49.9% from RMB4.1 billion in the third quarter of 2015 and an increase of 104.4% from RMB2.97 billion in the fourth quarter of 2014, respectively. The sequential increase in total revenues was mainly attributable to the increase in shipments of solar modules. The year-over-year increase was mainly due to the increase in shipments as well as electricity revenues.

 

During the fourth quarter of 2015, revenues from downstream solar power projects were RMB136.3 million (US$21.0 million), representing a decrease of 33.8% from RMB205.8 million in the third quarter of 2015 and an increase of 69.4% from RMB80.4 million in the fourth quarter of 2014. The sequential decrease was primarily due to seasonality and the curtailment of projects in China’s western regions. The year-over-year increase in solar power project revenues was primarily due to the increase in number and capacity of the Company’s solar projects. Gross profit for solar power project revenues was RMB46.3 million (US$7.2 million) during the fourth quarter of 2015, representing a gross margin of 34.0%.

 

The Company has entered into certain sales contracts with retainage terms (the "Retainage Contracts") since the second half of 2012, under which customers were allowed to withhold payment of 5% to 10% of the full contract price as retainage for the specified period which generally ranges from one year to two years (the "Retainage Period"). Given the limited experience the Company has with respect to the collectability of the retainage under the Retainage Contracts, the Company does not recognize such retainage until the customers pay it after the Retainage Period expires. The total amount of retainage under the Retainage Contracts that was not recognized as revenues was RMB11.7 million (US$1.8 million) and nil for the fourth and the third quarter of 2015, respectively. During the fourth quarter of 2015, the Company recognized retainage payments of RMB35.3 million (US$5.4 million) as revenues. As of December 31, 2015, the cumulative amount of retainage that had not yet been recognized as revenue was RMB156.2 million (US$24.1 million).

 

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Gross Profit and Gross Margin

 

Gross profit in the fourth quarter of 2015 was RMB1.18 billion (US$182.6 million), compared with RMB864.6 million in the third quarter of 2015 and RMB678.2 million in the fourth quarter of 2014.

 

Gross margin was 19.5% in the fourth quarter of 2015 compared with 21.3% in the third quarter of 2015 and 22.8% in the fourth quarter of 2014. The sequential decrease was from the lower gross margins of electricity revenues due to seasonality and the curtailment of projects in China’s western regions.

 

Income from Operations and Operating Margin

 

Income from operations in the fourth quarter of 2015 was RMB482.7 million (US$74.5 million), compared RMB384.0 million in the third quarter of 2015 and RMB236.6 million in the fourth quarter of 2014. Operating margin in the fourth quarter of 2015 was 7.9%, compared with 9.5% in the third quarter of 2015 and 8.0% in the fourth quarter of 2014, respectively.

 

Total operating expenses in the fourth quarter of 2015 were RMB700.3 million (US$ 108.1 million), an increase of 45.7% from RMB480.6 million in the third quarter of 2015 and an increase of 58.6% from RMB441.5 million in the fourth quarter of 2014. The sequential increase in operating expenses was mainly due to increases in shipping and warranty costs and provisions of accounts receivable.

 

Total operating expenses excluding non-cash expenses, including stock-based compensation, the provisions for doubtful accounts, and disposal and impairment of fixed assets were RMB 587.1 million (US$90.6 million), compared to RMB493.1 million in the third quarter of 2015 and RMB388.7 million in the fourth quarter of 2014.

 

Total operating expenses excluding non-cash charges as a percentage of total net revenues was 9.7% in the fourth quarter of 2015, compared to 12.2% in the third quarter of 2015 and 13.1% in the fourth quarter of 2014.

 

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Interest Expense, Net

 

Net interest expense in the fourth quarter of 2015 was RMB97.3 million (US$15.0 million), a decrease of 33.5% from RMB146.2 million in the third quarter of 2015 and an increase of 18.5% from RMB82.1 million in the fourth quarter of 2014. The sequential decrease was mainly due to lower interest expenses associated with the discounted notes receivable and the capitalization of interests expensed in the prior year. The year-over-year increase was mainly due to an increase in loans used for solar power projects.

 

Exchange Gain / (Loss), Net

 

The Company recorded an exchange gain of RMB72.1 million (US$11.1 million) including change in fair value of forward contracts in the fourth quarter of 2015. The Company had net exchange loss of RMB121.6 million in the third quarter of 2015 and net exchange loss of RMB6.8 million in the fourth quarter of 2014. The sequential and year-over-year changes were mainly due to the Company’s proactive hedging strategy to minimize foreign exchange impact.

 

Change in Fair Value of Convertible Senior Notes and Capped Call Options

 

The Company recognized a loss from a change in fair value of convertible senior notes of RMB48.7 million (US$7.5 million), and a gain from a change in fair value of capped call options of RMB4.0 million (US$0.6 million). The loss from change in fair value of convertible senior notes was primarily due to the increase in the price of the Company’s stock during the fourth quarter of 2015. The Company repurchased convertible senior notes for an aggregate amount of US$22.5 million during the fourth quarter.

 

Equity in Income of Affiliated Companies

 

The Company recognized equity income from affiliated companies of RMB1.7 million (US$0.3 million) in the fourth quarter of 2015 as a result of its share of profits for solar power projects held by affiliated companies.

 

Income Tax Expense / (Benefit), Net

 

The Company recorded an income tax expense of RMB59.6 million(US$9.2 million) in the fourth quarter of 2015, compared with an income tax expense of RMB34.2 million in the third quarter of 2015 and an income tax benefit of RMB9.4 million during the fourth quarter of 2014.

 

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Net Income and Earnings per Share

 

Net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders in the fourth quarter of 2015 was RMB349.4 million (US$53.9 million), compared with RMB195.1 million in the third quarter of 2015 and RMB244.7 million in the fourth quarter of 2014.

 

Basic and diluted earnings per share were RMB2.80 (US$0.43) and RMB2.73 (US$0.42), respectively, during the fourth quarter of 2015. This translates into basic and diluted earnings per ADS of RMB11.20 (US$1.72) and RMB10.92 (US$1.68), respectively.

 

Non-GAAP net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders in the fourth quarter of 2015 was RMB503.5 million (US$77.7 million), compared with RMB253.3 million in the third quarter of 2015 and RMB237.1 million in the fourth quarter of 2014.

 

Non-GAAP basic and diluted earnings per share were RMB4.03 (US$0.62) and RMB3.93 (US$0.61), respectively, during the fourth quarter for 2015. This translates into non-GAAP basic and diluted earnings per ADS of RMB16.12 (US$2.48) and RMB15.72 (US$2.44), respectively.

 

Financial Position

 

As of December 31, 2015, the Company had RMB4.24 billion (US$654.4 million) in cash and cash equivalents and restricted cash, compared with RMB3.7 billion of cash and cash equivalents and restricted cash as of September 30, 2015.

 

As of December 31, 2015, the total interest-bearing debts were RMB10.29 billion (US$1.59 billion), compared with RMB10.60 billion as of September 30, 2015, of which interest-bearing debts from downstream solar power projects accounted for RMB4.93 billion (US$760.3 million), compared with RMB 4.07 billion as of September 30, 2015.

 

As of December 31, 2015, the Company's working capital was negative RMB640.3 million (US$98.8 million), compared with negative RMB734.3 billion as of September 30, 2015.

 

Full Year 2015 Financial Results

 

Total Revenues

 

Total revenues for the full year 2015 were RMB16.08 billion (US$2.48 billion), an increase of 61.1% from RMB9.98 billion for the full year 2014. The increase in total revenues was mainly attributable to the increase in shipments of solar modules and electricity revenues from solar projects.

 

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Gross Profit and Gross Margin

 

Gross profit for the full year 2015 was RMB3.3 billion (US$504.8 million), an increase of 46.0% from RMB2.2 billion for the full year 2014. Gross margin was 20.3% for the full year 2015, compared with 22.4% for the full year 2014. The decrease in gross margin was primarily due to a slight decline in solar module ASPs.

 

Income from Operations and Operating Margin

 

Income from operations for the full year 2015 was RMB1.33 billion (US$205.9 million), compared with RMB931.6 million for the full year 2014. Operating margin for the full year 2015 was 8.3%, compared with 9.3% for the full year 2014.

 

Total operating expenses for the full year 2015 were RMB1.94 billion (US$298.9 million), an increase of 48.0% from RMB1.3 billion for the full year 2014. Operating expenses represented 12.0% of total revenues for the full year 2015, compared with 13.1% for the full year 2014. The increase in total operating expense is primarily due to the increase of shipping and warranty, and stock-based compensation expenses.

 

Interest Expense, Net

 

Net interest expense for the full year 2015 was RMB385.9 million (US$59.6 million), an increase of 34.2% from RMB287.7 million in 2014. The increase was primarily due to the increase in bank borrowings used for the construction of downstream solar power projects in 2015.

 

Exchange Loss

 

The Company recorded an exchange loss of RMB61.2 million (US$9.4 million) in the full year 2015. The Company had net exchange loss of RMB147.8 million in 2014.

 

Change in Fair Value of Convertible Senior Notes and Capped Call Options

 

The Company recognized a loss from a change in fair value of convertible senior notes and capped call options of RMB14.6 million (US$2.2 million) for the full year 2015, compared with a gain of RMB64.1 million in 2014, primarily due to changes in the Company’s stock price.

 

8 

 

 

Equity in Gain of Affiliated Companies

 

The Company recognized equity gain of affiliated companies of RMB13.7 million (US$2.1 million) for the full year 2015 as a result of its share of profits for solar power projects held by affiliated companies.

 

Income Tax Expense/(Benefit), Net

 

The Company recognized an income tax expense of RMB111.9 million (US$17.3 million) for the full year 2015, compared with a tax benefit of RMB134.3 million in 2014. The Company’s evaluation of its deferred tax assets was based on both positive and negative indications of the ability to realize the benefits of such tax assets. Based on the strong financial performance of certain subsidiaries, the Company determined that the future taxable income of certain subsidiaries would be sufficient to realize the benefits of such tax assets and reversed the valuation allowance of RMB203.6 million in 2014.

 

Net Income and Earnings per Share

 

Net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders for the full year 2015 was RMB683.8 million (US$105.6 million), compared with a net income of RMB673.0 million in 2014.

 

Basic and diluted income per share for the full year 2015 was RMB5.49 (US$0.85) and RMB5.35 (US$0.83), respectively. This translates into basic and diluted earnings per ADS of RMB21.96 (US$3.40) and RMB21.40 (US$3.32), respectively.

 

Non-GAAP net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders for the full year 2015 was RMB1.15 billion (US$177.0 million), compared with non-GAAP net income of RMB800.2 million in 2014.

 

Non-GAAP basic and diluted earnings per share for the full year 2015 were RMB9.20 (US$1.42) and RMB8.97 (US$1.38), respectively, which translates into non-GAAP basic and diluted earnings per ADS of RMB36.80 (US$5.68) and RMB35.88 (US$5.52), respectively.

 

9 

 

 

Fourth Quarter and Full Year 2015 Operational Highlights

 

Solar Module Shipments

 

Total solar module shipments in the fourth quarter of 2015 amounted to 1,709.9 MW, including 92.7 MW to be used in the Company’s downstream projects. In comparison, total solar module shipments for the third quarter of 2015 amounted to 1,134.9 MW, including 71.0 MW to be used in the Company’s downstream projects.

 

Total solar module shipments in 2015 amounted to 4,511.6 MW, including 304.0 MW to be used in the Company’s downstream projects. In comparison, total solar module shipments in 2014 amounted to 2,943.4 MW, including 520 MW to be used in the Company’s downstream projects.

 

Solar Power Project Capacity

 

As of December 31, 2015, the Company had connected 1,006.6 MW of solar power projects to the grid.

 

Solar Products Production Capacity

 

As of December 31, 2015, the Company's in-house annual silicon wafer, solar cell and solar module production capacity was 3 GW, 2.5 GW and 4.3 GW, respectively.

 

Recent Business Developments

 

lIn November 2015, JinkoSolar was invited to the COP21 climate change conference held in Paris.

 

lIn January 2016, JinkoSolar announced that its multi-crystalline PV modules were the first to receive the China Quality Certification Center's Top Runner Program level-one energy efficiency certification in China.

 

lIn January 2016, JinkoSolar announced that it had entered into an agreement to supply up to one gigawatt (GW) of solar PV modules to sPower, a leading US independent power producer (IPP) company.

 

lIn January 2016, JinkoSolar announced that it had formed a consortium with RWE AG through its subsidiary RWE Innogy to jointly participate in the 800 MW Solar Photovoltaic Independent Power Project - Phase III tendered by the Dubai Electricity and Water Authority in Dubai, United Arab Emirates.

 

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Operations and Business Outlook

 

First Quarter and Full Year 2016 Guidance

 

For the first quarter of 2016, the Company estimates total solar module shipments to be in the range of 1.3 GW to 1.4 GW, which includes 1.2 GW to 1.3 GW module shipments to third parties. Revenues will not be recognized for the modules shipped to its own downstream projects as required by U.S. GAAP.

 

For the full year 2016, the Company estimates total solar module shipments to be in the range of 6 GW and 6.5 GW which includes 5.4 GW to 5.7 GW module shipments to third parties. Full year newly-added solar power project development scale is expected to be in the range of 600 MW to 800 MW.

 

 

Conference Call Information

 

JinkoSolar's management will host an earnings conference call on Tuesday, March 1, 2016 at 8:00 a.m. U.S. Eastern Time (9:00 p.m. Beijing / Hong Kong the same day).

 

Dial-in details for the earnings conference call are as follows:

 

Hong Kong / International: +852-5808-3202
U.S. Toll Free: +1-855-298-3404
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 2 hours after the conclusion of the conference call through 23:59 U.S. Eastern Time, March 7, 2016. The dial-in details for the replay are as follows:

 

International: +61-2-9641-7900
U.S. Toll Free: +1-866-846-0868
Passcode: 2922383

 

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.

 

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About JinkoSolar Holding Co., Ltd.

 

JinkoSolar (NYSE: JKS) is a global leader in the solar industry. 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 3 GW for silicon ingots and wafers, 2.5 GW for solar cells, and 4.3 GW for solar modules, as of December 31, 2015. JinkoSolar also sells electricity in China, and had connected approximately 1,006.6 MW of solar power projects to the grid, as of December 31, 2015.

 

JinkoSolar has over 15,000 employees across its 5 productions facilities in Jiangxi and Zhejiang Provinces, China, Malaysia, Portugal and South Africa, 12 global sales offices in China, Spain, the United Kingdom, the United Arab Emirates, Jordan, Saudi Arabia, Egypt, Morocco, Ghana, Brazil, Costa Rica and Mexico and 11 oversea subsidiaries in Germany, Italy, Switzerland, the United States, Canada, Australia, Singapore, Japan, India, South Africa and Chile.

 

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, non-GAAP earnings per ADS, and non-GAAP diluted weighted average ordinary shares outstanding, which are adjusted from the comparable GAAP results to exclude certain expenses or incremental ordinary shares relating to share-based compensation, convertible senior notes and capped call options, and accretion to redemption value of redeemable non-controlling interest:

 

·Non-GAAP net income is 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, exchange gain/(loss) on the convertible senior notes and capped call options, stock-based compensation, and accretion to redemption value of redeemable non-controlling interests; and

 

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·Non-GAAP earnings per share and non-GAAP earnings 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 gain on the convertible senior notes and capped call options, stock-based compensation, and accretion to redemption value of redeemable non-controlling interests.

 

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 December 31, 2015, which was RMB6.4778 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.

 

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For investor and media inquiries, please contact:

 

In China:
Sebastian Liu
JinkoSolar Holding Co., Ltd.
Tel: +86 21-6061-1792
Email: ir@jinkosolar.com

 

Christian Arnell
Christensen
Tel: +86-10-5900-1548
Email: carnell@christensenir.com

 

In the U.S.:
Ms. Linda Bergkamp

Christensen

Tel: +1-480-614-3004

Email: lbergkamp@ChristensenIR.com

 

 

 

 

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 JINKOSOLAR HOLDING CO., LTD.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except ADS and Share data)

  

   For the quarter ended 
   December 31, 2014   September 30, 2015   December 31, 2015 
   RMB   RMB   RMB   USD 
Revenues from third parties   2,971,253    4,052,520    6,074,130    937,684 
                     
Cost of revenues   (2,293,087)   (3,187,894)   (4,891,073)   (755,052)
                     
Gross profit   678,166    864,626    1,183,057    182,632 
                     
Operating expenses:                    
Selling and marketing   (253,978)   (302,547)   (366,232)   (56,536)
General and administrative   (144,241)   (138,214)   (295,077)   (45,552)
Research and development   (37,619)   (39,869)   (39,039)   (6,027)
Impairment of long lived assets   (5,702)   -    -    - 
Total operating expenses   (441,540)   (480,630)   (700,348)   (108,115)
                     
Income from operations   236,626    383,996    482,709    74,517 
Interest expenses, net   (82,102)   (146,235)   (97,263)   (15,015)
Change in fair value of derivative liability   -    (2,532)   436    67 
Subsidy income   42,284    43,562    55,125    8,510 
Exchange (loss)/gain   (45,351)   (109,560)   62,355    9,626 
Other income/(expense), net   99    (230)   (14,792)   (2,283)
Change in fair value of forward contracts   38,555    (12,035)   9,774    1,509 
Change in fair value of convertible senior notes and capped call options   80,179    111,021    (45,301)   (6,993)
Income before income taxes   270,290    267,987    453,043    69,938 
Income tax benefit/(expense)   9,405    (34,225)   (59,593)   (9,200)
Equity in income of affiliated companies   2,141    7,021    1,691    261 
Net income   281,836    240,783    395,141    60,999 
Less: Net income attributable to non-controlling  interests   15    2,024    855    132 
Less: Accretion to redemption value of redeemable non-controlling interests   37,107    43,678    44,934    6,937 
Net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders   244,714    195,081    349,352    53,930 
Net income attributable to  JinkoSolar Holding Co., Ltd.'s ordinary shareholders per share:                    
Basic   1.97    1.56    2.80    0.43 
Diluted   0.78    0.78    2.73    0.42 
                     
Net income attributable to  JinkoSolar Holding Co., Ltd.'s  ordinary shareholders per ADS:                    
Basic   7.88    6.24    11.20    1.72 
Diluted   3.12    3.12    10.92    1.68 
                     
Weighted average ordinary shares outstanding:                    
Basic   124,271,181    124,771,933    124,922,950    124,922,950 
Diluted   155,066,407    155,612,355    128,057,418    128,057,418 

  

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

Net income   281,836    240,783    395,141    60,999 
Other comprehensive income/(loss):                    
-Unrealized loss on available-for-sale securities, net   (540)   -    (1,078)   (166)
-Foreign currency translation adjustments   2,613    6,364    (7,489)   (1,156)
Comprehensive income   283,909    247,147    386,574    59,677 
Less: Comprehensive income attributable to non-controlling interests   15    2,024    855    132 
Comprehensive income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders   283,894    245,123    385,719    59,545 
                     
NON-GAAP RECONCILIATION                    
                     
1. Non-GAAP earnings per share and non-GAAP earnings per ADS                    
                     
GAAP net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders   244,714    195,081    349,352    53,930 
                     
Change in fair value of derivative liability   -    2,532    (436)   (67)
                     
Change in fair value of convertible senior
 notes and capped call options
   (80,179)   (111,021)   45,301    6,993 
                     
4% of interest expense of convertible  senior notes   16,779    16,932    16,946    2,616 
                     
Exchange loss/(gain) on  convertible senior  notes and capped call options   (8,557)   65,224    30,251    4,670 
                     
Stock-based compensation expense   27,231    40,832    17,139    2,646 
                     
Accretion to redemption value of redeemable non-controlling interests   37,107    43,678    44,934    6,937 
                     
Non-GAAP net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders-   237,095    253,258    503,487    77,725 
                     
Non-GAAP net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders per share -                    
Basic   1.91    2.03    4.03    0.62 
Diluted   1.53    1.63    3.93    0.61 
                     
Non-GAAP net income attributable to JinkoSolar Holding Co., Ltd. ‘s ordinary shareholders per ADS -                    
Basic   7.64    8.12    16.12    2.48 
Diluted   6.12    6.52    15.72    2.44 
                     
Non-GAAP weighted average ordinary shares outstanding                    
Basic   124,271,181    124,771,933    124,922,950    124,922,950 
Diluted   155,066,047    155,612,355    128,057,418    128,057,418 

  

15 

 

 

JINKOSOLAR HOLDING CO., LTD.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

 

 

   December 31, 2014   December 31, 2015 
   RMB   RMB   USD 
ASSETS               
Current assets:               
Cash and cash equivalents   1,777,021    3,683,664    568,660 
Restricted cash   517,055    555,724    85,789 
Restricted short-term investments   1,599,302    1,759,566    271,630 
Short-term investments   112,000    29,427    4,543 
Accounts receivable, net - related parties   174,534    60,974    9,413 
Accounts receivable, net - third parties   3,118,303    3,356,719    518,188 
Notes receivable, net - third parties   72,881    554,087    85,536 
Advances to suppliers, net - related parties   1,184    1,021    158 
Advances to suppliers, net - third parties   80,922    251,390    38,808 
Inventories, net   1,891,148    3,203,325    494,508 
Forward contract receivables   47,713    7,039    1,087 
Deferred tax assets - current   77,562    79,101    12,211 
Other receivables - related parties   163    -    - 
Available-for-sale investment   20,876    -    - 
Capped Call options   -    17,490    2,700 
Prepayments and other current assets   916,656    1,035,063    159,786 
                
Total current assets   10,407,320    14,594,590    2,253,017 
                
Non-current assets:               
Restricted cash   142,737    333,750    51,522 
Project Assets   4,353,070    7,044,729    1,087,519 
Long-term investments   103,118    116,787    18,029 
Property, plant and equipment, net   3,101,795    3,771,455    582,212 
Land use rights, net   371,932    349,914    54,017 
Intangible assets, net   9,964    21,203    3,273 
Deferred tax assets - no current   102,124    125,844    19,427 
Capped call options   21,098    -    - 
Other assets   474,478    786,276    121,380 
                
Total non-current assets:   8,680,316    12,549,958    1,937,379 
                
Total assets   19,087,636    27,144,548    4,190,396 
                
LIABILITIES               
Current liabilities:               
Accounts payable - related parties   1,479    1,479    228 
Accounts payable - third parties   3,147,732    3,783,305    584,042 
Notes payable - third party   2,452,444    2,513,762    388,058 
Accrued payroll and welfare expenses   312,431    475,598    73,420 
Advances from customers   423,089    1,299,805    200,655 
Income tax payable   75,789    106,042    16,370 
Other payables and accruals   1,392,144    2,228,567    344,033 
Other payables due to a related party   7,577    4,993    771 
Forward contract payables   30,901    4,296    663 
Convertible senior notes- current   -    650,917    100,484 
Deferred tax liabilities - current   6,187    9,266    1,430 
Bonds payable and accrued interests   66,726    866,726    133,799 
Short-term borrowings from third parties, including current portion of long-term bank borrowings   2,606,866    3,290,149    507,911 
                
Total current liabilities   10,523,365    15,234,905    2,351,864 
                
Non-current liabilities:               
Long-term borrowings   956,500    4,627,904    714,425 
Long-term payables   66,906    56,956    8,792 
Bond payables   800,000    -    - 
Accrued warranty costs -non-current   229,489    329,237    50,825 
Convertible senior notes   1,540,399    856,064    132,154 
Deferred tax liability - non-current   2,573    11,380    1,757 
Derivative liability - non current   -    68,378    10,556 
Total non-current liabilities   3,595,867    5,949,919    918,509 
                
Total liabilities   14,119,232    21,184,824    3,270,373 
                
Redeemable non-controlling interests   1,435,585    1,607,926    248,221 
                
SHAREHOLDERS' EQUITY               
Ordinary shares (US$0.00002 par value, 500,000,000 shares authorized, 124,292,030 and  125,473,930 shares issued and outstanding as of December 31, 2014 and December 31, 2015, respectively)   18    18    3 
Additional paid-in capital   2,794,025    2,924,336    451,440 
Statutory reserves   251,905    351,855    54,317 
Accumulated other comprehensive income   11,874    12,491    1,928 
Treasury stock, at cost; 1,723,200 shares of ordinary shares as of December 31, 2014 and December 31, 2015, respectively   (13,876)   (13,876)   (2,142)
Accumulated retained earnings   463,151    1,047,045    161,636 
                
Total JinkoSolar Holding Co., Ltd. shareholders' equity   3,507,097    4,321,869    667,182 
                
Non-controlling interests   25,722    29,929    4,620 
                
Total liabilities and shareholders' equity   19,087,636    27,144,548    4,190,396 

 

16 

 

 JINKOSOLAR HOLDING CO., LTD.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except ADS and Share data)

   

 

   2014   2015 
   RMB   RMB   USD 
Revenues from third parties   9,977,972    16,076,482    2,481,781 
                
Revenues from related parties   557    -    - 
                
Total revenues   9,978,529    16,076,482    2,481,781 
                
Cost of revenues   (7,738,489)   (12,806,680)   (1,977,010)
                
Gross profit   2,240,040    3,269,802    504,771 
                
Operating expenses:               
Selling and marketing   (769,011)   (1,144,559)   (176,689)
General and administrative   (426,573)   (647,894)   (100,018)
Research and development   (106,627)   (143,671)   (22,178)
Impairment of long lived assets   (6,217)   -    - 
Total operating expenses   (1,308,428)   (1,936,124)   (298,885)
                
Income from operations   931,612    1,333,678    205,886 
Interest expenses, net   (287,668)   (385,942)   (59,579)
Change in fair value of derivative liability   -    (2,096)   (324)
Convertible senior notes issuance costs   (26,053)   -    - 
Subsidy income   49,785    103,578    15,990 
Exchange loss   (147,058)   (117,732)   (18,175)
Other expense, net   (1,692)   (14,982)   (2,313)
Change in fair value of forward contracts   (715)   56,562    8,732 
Change in fair value of convertible senior notes and capped call options   64,102    (14,571)   (2,250)
Income before income taxes   582,313    958,495    147,967 
Income tax benefit/(expense)   134,334    (111,864)   (17,269)
Equity in income of affiliated companies   9,549    13,669    2,110 
Net income   726,196    860,300    132,808 
Less:Net income attributable to non-controlling interests   851    4,207    649 
Less:Accretion to redemption value of redeemable non-controlling interests   52,321    172,340    26,605 
Net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders   673,024    683,753    105,554 
                
Net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders per share:               
Basic   5.47    5.49    0.85 
Diluted   3.86    5.35    0.83 
                
Net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders per ADS:               
Basic   21.88    21.96    3.40 
Diluted   15.44    21.40    3.32 
                
Weighted average ordinary shares outstanding:               
Basic   122,980,870    124,618,416    124,618,416 
Diluted   153,786,531    127,802,961    127,802,961 

  

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE (LOSS) INCOME                        

 

Net income   726,196    860,300    132,808 
Other comprehensive (loss)/income:               
-Unrealized loss on available-for-sale securities   (5,630)   (413)   (64)
-Foreign currency translation adjustments   4,634    1,030    159 
Comprehensive income   725,200    860,917    132,903 
Less: comprehensive (loss)/income attributable to non-controlling interests   (851)   4,207    649 
                
Comprehensive income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders   726,051    856,710    132,254 
                
                
                
NON-GAAP RECONCILIATION               
                
1. Non-GAAP income per share and non-GAAP earnings per ADS               
                
GAAP net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders   673,024    683,753    105,553 
                
Change in fair value of derivative liability   -    2,096    324 
                
Convertible senior notes issuance costs   26,053    -    - 
Change in fair value of convertible senior notes and capped call options   (64,102)   14,571    2,250 
                
4% of interest expense of convertible senior notes   64,961    67,362    10,399 
                
Exchange loss on  convertible senior notes and capped call options   5,298    93,874    14,492 
                
Stock-based compensation expense   42,690    112,682    17,395 
                
Accretion to redemption value of redeemable non-controlling interests   52,321    172,340    26,605 
                
Non-GAAP net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders-   800,245    1,146,678    177,018 
                
Non-GAAP net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders per share -               
Basic   6.51    9.20    1.42 
Diluted   5.20    8.97    1.38 
                
Non-GAAP net income attributable to JinkoSolar Holding Co., Ltd. ‘s ordinary shareholders per ADS -               
Basic   26.04    36.80    5.68 
Diluted   20.80    35.88    5.52 
                
Weighted average ordinary shares outstanding used in Non-GAAP EPS-               
Basic   122,980,870    124,618,416    124,618,416 
Diluted   153,786,531    127,802,961    127,802,961 

 

17