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 November 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
99.2 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: November 16, 2016

 

 

 

Exhibit 99.1

 

 

JinkoSolar Completes the Sale of Jinko Power Downstream Business in China

 

 

SHANGHAI – Nov. 15, 2016 – JinkoSolar Holding Co., Ltd. (“JinkoSolar” or the “Company”), a global leader in the photovoltaic industry, today announced the completion of the sale of all of the 55% equity interest it indirectly held in Jiangxi JinkoSolar Engineering Co., Ltd., a developer and operator of solar power projects in the People’s Republic of China, to Shangrao Kangsheng Technology Co., Ltd. (the “Buyer”), a company formed by a buyer consortium led by Mr. Xiande Li, chairman of the board of directors of the Company, pursuant to the previously announced Share Purchase Agreement entered into by Wide Wealth Group Holding Limited, a 55%-owned indirect subsidiary of the Company, and the Buyer. As a result of the sale, JinkoSolar spun off its downstream business of Jinko Power and received US$250 million in cash.

 

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 3.5 GW for silicon ingots and wafers, 3.5 GW for solar cells, and 6.5 GW for solar modules, as of June 30, 2016. JinkoSolar also sells electricity in China, and had connected approximately 1,130 MW of solar power projects to the grid, as of June 30, 2016.

 

JinkoSolar has over 15,000 employees across its 6 productions facilities in Jiangxi, Zhejiang and Xinjiang Provinces, China, Malaysia, Portugal and South Africa, 16 oversea subsidiaries in Japan (2),  Singapore, India, Turkey, Germany, Italy, Switzerland, Spain, United States, Canada, Mexico, Brazil, Chile, Australia and South Africa. 18 global sales offices in China (2) ,United Kingdom, Bulgaria, Greece, Romania, United Arab Emirates, Jordan, Saudi Arabia, Kuwait, Egypt, Morocco, Ghana, Kenya, Costa Rica, Colombia, Brazil and Mexico.

 

To find out more, please see: www.jinkosolar.com

 

  

 

 

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:

 

Mr. Sebastian Liu

JinkoSolar Holding Co., Ltd.

Tel: +86 21-5183-3056

Email: ir@jinkosolar.com

 

Mr. Christian Arnell

Christensen, Beijing 

Tel: +86 10 5900 2940

Email: carnell@christensenir.com

 

 

In the U.S.:

 

Ms. Linda Bergkamp

Christensen, Scottsdale, Arizona
Tel: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com

 

 

2 

Exhibit 99.2

 

 

 

JinkoSolar Announces Third Quarter 2016 Financial Results

 

 

SHANGHAI, China, November 16, 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 third quarter ended September 30, 2016.

 

Third Quarter 2016 Highlights

 

·Total solar module shipments were 1,606 megawatts ("MW"), which includes 50 MW used in the Company’s downstream projects. Total solar module shipments decreased by 6.4% from 1,716 MW in the second quarter of 2016 and increased by 41.6% from 1,134.5 MW in the third quarter of 2015.
·Total revenues were RMB5.70 billion (US$855.3 million), a decrease of 4.4% from the second quarter of 2016 and an increase of 39.0% from the third quarter of 2015.
·Gross margin was 22.1%, compared with 20.4% in the second quarter of 2016 and 21.3% in the third quarter of 2015.
·Solar power projects generated 395 GWh of electricity, an increase of 20.8% from the second quarter of 2016 and an increase of 69.0% from the third quarter of 2015. Total revenues generated from solar power projects were RMB372.4 million (US$55.8 million), an increase of 29.1% from the second quarter of 2016 and an increase of 81.0% from the third quarter of 2015.
·As of September 30, 2016, the Company had connected 1,314 MW worth of solar power projects.
·In October 2016, the Company entered into definitive agreement to sell Jinko Power’s downstream business to Shangrao Kangsheng Technology Co., Ltd. (“Shangrao Kangsheng"), a company incorporated with limited liability under the laws of the People's Republic of China, formed by a buyer consortium led by Mr. Xiande Li, chairman of the board of directors of the Company (the "Board"). The transaction was closed in November 2016. The Company expects to report a gain on the sale in the fourth quarter of 2016.
·Income from operations was RMB600.9 million (US$90.1 million), compared with RMB445.1 million in the second quarter of 2016 and RMB384.0 million in the third quarter of 2015.
·Net income attributable to the Company's ordinary shareholders was RMB233.7 million (US$35.0 million), compared with RMB280.1 million in the second quarter of 2016 and RMB195.1 million in the third quarter of 2015.

 

  

 

 

·Diluted earnings per American depositary share ("ADS") was RMB6.04 (US$0.92), compared with RMB8.48 in the second quarter of 2016 and RMB3.12 in the third quarter of 2015.
·Non-GAAP net income attributable to the Company's ordinary shareholders in the third quarter of 2016 was RMB305.8 million (US$45.8 million), compared with RMB421.8 million in the second quarter of 2016 and RMB253.3 million in the third quarter of 2015.
·Non-GAAP basic and diluted earnings per ADS were RMB9.72 (US$1.44) and RMB9.36 (US$1.40), respectively, in the third quarter of 2016.

 

Mr. Kangping Chen, JinkoSolar’s Chief Executive Officer commented, “Our business continued to gain growth momentum despite a challenging environment. Module shipments reached 1,606 MW, an increase of 41.6% year-over-year while total revenues reached US$855.3 million, an increase of 39.0% over the same period last year. Based on our visibility into the fourth quarter of 2016, we are once again raising our full year 2016 shipment guidance to 6.6GW to 6.7GW from our previous guidance of 6.0GW to 6.5GW. We are well positioned to continue benefitting from the global adoption of solar energy, which is playing a more important role in the global energy landscape.”

 

“Jinko Power’s electricity output increased 20.8% sequentially to 395GWh while generating RMB372.4 million in revenue. Jinko Power connected an additional 184MW worth of solar projects during the quarter, bringing our total to 1,314 MW as of September 30, 2016. We closed the sale of Jinko Power’s business in November 2016 to Shangrao Kangsheng for US$250 million in cash, which will significantly improve our balance sheet by reducing our debt and net gearing ratio. We expect to report a gain on the sale in the fourth quarter of 2016. This injection into our already substantial cash position will also provide us with the extra flexibility for our future operations.”

 

“We consolidated our leading position across a number of key and emerging markets during the quarter. Demand in China remains robust as module prices stabilized. Demand is expected to pick up again in the first half of 2017 with the announcement of the next round of FiT cut, which we expect will act as a strong catalyst. Demand in the US is stable despite recent market panic which we believe is only temporary. We expect the US market will heat up again during the second half of 2017. We have always advocated a fair, transparent and market-driven environment, and the withdrawal of major solar manufacturers from the EU’s MIP agreement is boosting our outlook for the European markets. We also reinforced our presence on the ground in India by opening a new office to offer local technical and logistical support to our customers there. We expanded our emerging market presence to over 40 countries and regions, and strengthened our leading position in key markets such as Chile, Mexico and the UAE.”

 

2 

 

 

“We continued to focus on developing high-efficiency products. Our mono wafer capacity using diamond-wire cutting is now operational and is scaling up rapidly to support our high-efficiency PERC lines. As leader in the industry, our team is constantly focusing on providing our customers the highest-quality, most reliable and high-efficiency products.”

 

“We have experienced the ups and downs of the solar industry but we have never had any doubt about its great potential. We will continue to grow our business sustainably as we fulfill our commitment to green energy.” 

 

Third Quarter 2016 Financial Results

 

Total Revenues

 

Total revenues in the third quarter of 2016 were RMB5.70 billion (US$855.3 million), a decrease of 4.4% from RMB5.96 billion in the second quarter of 2016 and an increase of 39.0% from RMB4.1 billion in the third quarter of 2015. The sequential decrease was mainly attributable to a decline in module selling prices in the third quarter of 2016 as a result of a decrease in market demand and intense competition in the solar industry. The year-over-year increase was mainly due to the increase in revenues from electricity generation and solar module shipments growing at a faster pace than the decrease in average selling prices.

 

During the third quarter of 2016, revenues from downstream solar power projects were RMB372.4 million (US$55.8 million), an increase of 29.1% from RMB288.5 million in the second quarter of 2016 and an increase of 81.0% from RMB205.8 million in the third quarter of 2015. The sequential and year-over-year increases were primarily due to the increase in number and capacity of the Company’s solar projects.

 

3 

 

 

Gross Profit and Gross Margin

 

Gross profit in the third quarter of 2016 was RMB1.26 billion (US$188.6 million), compared with RMB1.21 billion in the second quarter of 2016 and RMB864.6 million in the third quarter of 2015.

 

Gross margin was 22.1% in the third quarter of 2016 compared with 20.4% in the second quarter of 2016 and 21.3% in the third quarter of 2015.

 

Income from Operations and Operating Margin

 

Income from operations in the third quarter of 2016 was RMB600.9 million (US$90.1 million), compared with RMB445.1 million in the second quarter of 2016 and RMB384.0 million in the third quarter of 2015. Operating margin in the third quarter of 2016 was 10.5%, compared with 7.5% in the second quarter of 2016 and 9.5% in the third quarter of 2015.

 

Total operating expenses in the third quarter of 2016 were RMB657.0 million (US$98.5 million), a decrease of 14.4% from RMB767.1 million in the second quarter of 2016 and an increase of 36.7% from RMB480.6 million in the third quarter of 2015. The sequential decrease was mainly due to an RMB99.3 million provision for impairment of property, plant and equipment during the second quarter of 2016. The year-over-year increase in operating expenses was mainly due to the increases in shipping and warranty costs and change in provision of accounts receivables.

 

Total operating expenses accounted for 11.5% of total revenues, compared to 12.9% in the second quarter of 2016 and 11.9% in the third quarter of 2015.

 

Interest Expense, Net

 

Net interest expense in the third quarter of 2016 was RMB219.7 million (US$32.9 million), an increase of 80.6% from RMB121.6 million in the second quarter of 2016 and an increase of 50.3% from RMB146.2 million in the third quarter of 2015. The sequential and year-over-year increases were mainly due to an increase in loans for solar power projects and fees charged by financial institutions associated with discounted notes receivables.

 

4 

 

 

Exchange Gain / (Loss), Net

 

The Company recorded a net exchange loss of RMB14.1 million (US$2.1 million) including change in fair value of forward contracts in the third quarter of 2016, compared to a net exchange gain of RMB106.6 million in the second quarter of 2016 and a net exchange loss of RMB121.6 million in the third quarter of 2015.

 

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 RMB15.7 million (US$2.4 million) in the third quarter of 2016 primarily due to the change of volatility of the stock price of the Company.

 

Change in fair value of derivative liability

 

In July 2015, Jinko Power, the parent company of the solar projects, entered into a US$150 million loan agreement. In conjunction with the loan, Jinko Power issued certain warrants which granted the holders a right to purchase its ordinary shares. The warrants are liability derivatives which need to be fair valued on day one and marked to market subsequently at each reporting period. In September 2016, Jinko Power refinanced and repaid the loan in advance and the warrants were settled.

 

The Company recognized a gain from change in fair value of derivative liability of RMB36.0 million (US$5.4 million) in the third quarter of 2016 mainly due to the early repurchase of warrants.

 

Income Tax Expense, net

 

The Company recorded an income tax expense of RMB116.8 million (US$17.5 million) in the third quarter of 2016, compared with an income tax expense of RMB90.9 million in the second quarter of 2016 and an income tax expense of RMB34.2 million during the third quarter of 2015. The sequential change was mainly due to additional tax deductions in R&D costs approved by the local tax bureau in the second quarter of 2016.

 

Net Income and Earnings per Share

 

Net income attributable to the Company's ordinary shareholders in the third quarter of 2016 was RMB233.7 million (US$35.0 million), compared with RMB280.1 million in the second quarter of 2016 and RMB195.1 million in the third quarter of 2015.

 

5 

 

 

Basic and diluted earnings per ordinary share were RMB1.85 (US$0.28) and RMB1.51 (US$0.23), respectively, during the third quarter of 2016. This translates into basic and diluted earnings per ADS of RMB7.40 (US$1.12) and RMB6.04 (US$0.92), respectively.

 

Non-GAAP net income attributable to the Company's ordinary shareholders in the third quarter of 2016 was RMB305.8 million (US$45.8 million), compared with RMB421.8 million in the second quarter of 2016 and RMB253.3 million in the third quarter of 2015.

 

Non-GAAP basic and diluted earnings per ordinary share were RMB2.43 (US$0.36) and RMB2.34 (US$0.35), respectively during the third quarter of 2016. This translates into non-GAAP basic and diluted earnings per ADS of RMB9.72 (US$1.44) and RMB9.36 (US$1.40), respectively.

 

Financial Position

 

As of September 30, 2016, the Company had RMB3.6 billion (US$547.3 million) in cash and cash equivalents and restricted cash, compared with RMB3.70 billion as of June 30, 2016.

 

As of September 30, 2016, the Company’s accounts receivables were RMB5.87 billion (US$880.5 million), compared with RMB4.17 billion as of June 30, 2016. Accounts receivables from downstream solar power projects were RMB1.25 billion (US$186.8 million), compared with RMB1.00 billion as of June 30, 2016.

 

As of September 30, 2016, the Company’s inventories were RMB3.26 billion (US$488.7 million), compared with RMB3.10 billion as of June 30, 2016.

 

As of September 30, 2016, the Company's total interest-bearing debts were RMB14.47 billion (US$2.17 billion), compared with RMB12.05 billion as of June 30, 2016. Interest-bearing debts from downstream solar power projects were RMB8.35 billion (US$1.25 billion), compared with RMB6.66 billion as of June 30, 2016.

 

Third Quarter 2016 Operational Highlights

 

Solar Module Shipments

 

Total solar module shipments in the third quarter of 2016 amounted to 1,606 MW, including 50 MW used in the Company’s downstream projects.

 

6 

 

 

Solar Power Project Capacity

 

As of September 30, 2016, the Company had connected 1,314 MW of solar power projects to the grid.

 

Solar Products Production Capacity

 

As of September 30, 2016, the Company's in-house annual silicon wafer, solar cell and solar module production capacity was 4.5 GW, 3.7 GW and 6.5 GW, respectively.

 

Recent Business Developments

 

·In October 2016, JinkoSolar ranked 16th among Fortune magazine's 100 Fastest-Growing Companies in 2016.
·In October 2016, JinkoSolar entered into a definitive agreement for the sale of Jinko Power’s downstream business in China to Shangrao Kangsheng, a company incorporated with limited liability under the laws of the People's Republic of China, formed by a buyer consortium led by Mr. Xiande Li, chairman of the Board. The transaction was closed in November 2016. JinkoSolar expects to report a gain on the sale in the fourth quarter of 2016.
·In October 2016, JinkoSolar signed a 300MW master module supply agreement with Henan Senyuan Electric.
·In September 2016, JinkoSolar helped create the first PV recycling network in the US
·In September 2016, JinkoSolar signed a master module supply agreement with Con Edison Development in the U.S.
·In September 2016, JinkoSolar supplied modules to power several mosques in Jordan.
·In September 2016, JinkoSolar announced its withdrawal from the European Union Price Undertaking agreement.

 

Operations and Business Outlook

 

Fourth Quarter and Full Year 2016 Guidance

 

For the fourth quarter of 2016, the Company estimates total solar module shipments to be in the range of 1.7 GW to 1.8 GW.

 

For the full year 2016, the Company raises the estimation of total solar module shipments to be in the range of 6.6 GW and 6.7 GW.

 

 

7 

 

 

Conference Call Information

 

JinkoSolar's management will host an earnings conference call on Wednesday, November 16, 2016 at 7:30 a.m. U.S. Eastern Time (8:30 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, November 22, 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: 1681350

 

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 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 4.5 GW for silicon ingots and wafers, 3.7 GW for solar cells, and 6.5 GW for solar modules, as of September 30, 2016.

 

8 

 

 

JinkoSolar has over 15,000 employees across its 6 productions facilities in Jiangxi, Zhejiang and Xinjiang Provinces, China, Malaysia, Portugal and South Africa, 16 oversea subsidiaries in Japan (2), Singapore, India, Turkey, Germany, Italy, Switzerland, Spain, United States, Canada, Mexico, Brazil, Chile, Australia and South Africa, and 18 global sales offices in China (2) ,United Kingdom, Bulgaria, Greece, Romania, United Arab Emirates, Jordan, Saudi Arabia, Kuwait, Egypt, Morocco, Ghana, Kenya, Costa Rica, Colombia, Brazil and Mexico. 

 

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 changes in fair value of convertible senior notes and capped call options, change in fair value of derivative liability, interest expenses of convertible senior notes, exchange gain on the convertible senior notes and capped call options, stock-based compensation, allocation of net income to redeemable non-controlling interests, and accretion to redemption value of redeemable non-controlling interests; 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 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.

   

9 

 

 

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 September 30, 2016, which was RMB6.6685 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.

 

10 

 

 

For investor and media inquiries, please contact:

 

In China:


Sebastian Liu
JinkoSolar Holding Co., Ltd.
Tel: +86 21-5183-3056
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

 

 

 

11 

 

  

JINKOSOLAR HOLDING CO., LTD.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except ADS and Share data)

 

 

   For the quarter ended 
   Sep 30, 2015   Jun 30, 2016   Sep 30, 2016 
   RMB   RMB   RMB   USD 
Revenues from third parties   4,052,520    5,918,875    5,703,608    855,306 
                     
Revenues from related parties   -    36,349    -    - 
                     
Total revenues   4,052,520   5,955,224   5,703,608    855,306 
                     
Cost of revenues   (3,187,894)   (4,743,024)   (4,445,768)   (666,682)
                     
Gross profit   864,626   1,212,200    1,257,840    188,624 
                     
Operating expenses:                    
Selling and marketing   (302,547)   (373,338)   (371,669)   (55,735)
General and administrative   (138,214)   (250,845)   (239,634)   (35,935)
Research and development   (39,869)   (43,617)   (41,864)   (6,278)
Impairment of long-lived assets   -    (99,328)   (3,819)   (573)
Total operating expenses   (480,630)   (767,128)   (656,986)   (98,521)
                     
Income from operations   383,996   445,072   600,854    90,103 
Interest expenses, net   (146,235)   (121,615)   (219,684)   (32,945)
Change in fair value of derivative liability   (2,532)   (1)   36,048    5,406 
Subsidy income   43,562    39,475    12,854    1,928 
Exchange gain/(loss)   (109,560)   117,018    (3,378)   (507)
Change in fair value of forward contracts   (12,035)   (10,390)   (10,752)   (1,612)
Change in fair value of convertible senior
notes and capped call options
   111,021    (49,076)   (15,684)   (2,352)
Other income/(expense), net   (230)   1,291    371    56 
Investment income/(loss)   -    (1,158)   1,730    260 
Income before income taxes   267,987    420,616    402,359    60,337 
Income tax expense, net   (34,225)   (90,888)   (116,803)   (17,516)
Equity in income of affiliated companies   7,021    3,509    8,626    1,294 
Net income   240,783    333,237    294,182    44,115 
Less:   Net income attributable to non-controlling
interests
   2,024    1,950    1,339    202 
Less: Accretion to redemption value of redeemable non-controlling interests   43,678    47,555    48,922    7,336 
Less: Allocation of net income to participating preferred shares issued by subsidiary   -    3,648    10,247    1,537 
Net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders   195,081    280,084    233,674    35,040 
Net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders per share:                    
Basic   1.56    2.23    1.85    0.28 
Diluted   0.78    2.12    1.51    0.23 
                     
Net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders per ADS:                    
Basic   6.24    8.92    7.40    1.12 
Diluted   3.12    8.48    6.04    0.92 
                     
Weighted average ordinary shares outstanding:                    
Basic   124,771,933    125,501,184    126,056,129    126,056,129 
Diluted   155,612,355    132,545,247    130,613,442    130,613,442 

 

 

 

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UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

                 
Net income   240,783    333,237    294,182    44,115 
Other comprehensive income:                    
-Foreign currency translation adjustments   6,364    (10,887)   (3,409)   (511)
Comprehensive income   247,147    322,350    290,773    43,604 
Less:   Comprehensive income attributable to non-controlling interests   2,024    1,950    1,339    202 
Less: Allocation of net income to participating preferred shares issued by subsidiary   -    3,648    10,247    1,537 
Comprehensive income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders   245,123    316,752    279,187    41,865 
                     
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   195,081    280,084    233,674    35,040 
                     
Change in fair value of derivative liability   2,532    1    (36,048)   (5,406)
                     
Change in fair value of convertible senior notes and capped call options   (111,021)   49,076    15,684    2,352 
                     
4% of interest expense of convertible senior notes   16,932    10,463    8,007    1,201 
                     
Exchange loss on convertible senior notes and capped call options   65,224    21,224    5,958    893 
                     
Stock-based compensation expense   40,832    13,353    29,558    4,432 
                     
Accretion to redemption value of redeemable non-controlling interests   43,678    47,555    48,922    7,336 
                     
Non-GAAP net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders   253,258    421,755    305,755    45,848 
·                    
Non-GAAP net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders per share                    
Basic   2.03    3.36    2.43    0.36 
Diluted   1.63    3.18    2.34    0.35 
                     
Non-GAAP net income attributable to JinkoSolar Holding Co., Ltd.‘s ordinary shareholders per ADS                    
Basic   8.12    13.44    9.72    1.44 
Diluted   6.52    12.72    9.36    1.40 
                     
Non-GAAP weighted average ordinary shares outstanding                    
Basic   124,771,933    125,501,184    126,056,129    126,056,129 
Diluted   155,612,355    132,545,247    130,613,442    130,613,442 

 

 

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JINKOSOLAR HOLDING CO., LTD.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

 

   Dec 31, 2015   Sep 30, 2016 
   RMB   RMB   USD 
ASSETS               
Current assets:               
Cash and cash equivalents   3,683,664    3,355,114    503,129 
Restricted cash   555,724    294,467    44,158 
Restricted short-term investments   1,759,566    2,901,598    435,120 
Short-term investments   29,427    6,526    979 
Accounts receivable, net - related parties   60,974    33,000    4,949 
Accounts receivable, net - third parties   3,356,719    5,838,663    875,559 
Notes receivable, net - third parties   554,087    281,519    42,216 
Advances to suppliers, net - related parties   1,021    -    - 
Advances to suppliers, net - third parties   251,390    275,987    41,387 
Inventories, net   3,203,325    3,258,802    488,686 
Forward contract receivables   7,039    647    97 
Deferred tax assets - current   79,101    92,696    13,901 
Other receivables - related parties   -    129    19 
Capped Call options   17,490    -    - 
Prepayments and other current assets   1,035,063    1,191,001    178,601 
                
Total current assets   14,594,590    17,530,149    2,628,801 
                
Non-current assets:               
Restricted cash   333,750    314,271    47,128 
Project Assets   7,044,729    9,492,974    1,423,555 
Long-term investments   116,787    130,513    19,572 
Property, plant and equipment, net   3,771,455    4,273,985    640,921 
Land use rights, net   349,914    362,190    54,314 
Intangible assets, net   21,203    22,309    3,345 
Deferred tax assets - non current   125,844    125,844    18,871 
Other assets   786,276    1,758,161    263,652 
                
Total non-current assets:   12,549,958    16,480,247    2,471,358 
                
Total assets   27,144,548    34,010,396    5,100,159 

 

 

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LIABILITIES               
Current liabilities:               
Accounts payable - related parties   1,479    406    61 
Accounts payable - third parties   3,783,305    4,146,391    621,788 
Notes payable - third parties   2,513,762    3,402,611    510,251 
Accrued payroll and welfare expenses   475,598    531,163    79,653 
Advances from customers   1,299,805    794,780    119,184 
Income tax payable   106,042    248,649    37,287 
Other payables and accruals   2,228,567    2,826,331    423,831 
Other payables due to related parties   4,993    28,985    4,347 
Forward contract payables   4,296    8,890    1,333 
Convertible senior notes- current   650,917    545,501    81,803 
Deferred tax liabilities - current   9,266    9,266    1,390 
Bonds payable and accrued interests   866,726    7,192    1,079 
Short-term borrowings from third parties, including current portion of long-term bank borrowings   3,290,149    5,705,352    855,568 
                
Total current liabilities   15,234,905    18,255,517    2,737,575 
                
Non-current liabilities:               
Long-term borrowings   4,627,904    8,091,805    1,213,437 
Long-term payables   56,956    66,235    9,933 
Bond payables   -    120,000    17,996 
Accrued warranty costs -non-current   329,237    443,458    66,500 
Convertible senior notes   856,064    -    - 
Deferred tax liability - non-current   11,380    33,882    5,081 
Derivative liability - non current   68,378    -    - 
Total non-current liabilities   5,949,919    8,755,380    1,312,947 
                
Total liabilities   21,184,824    27,010,897    4,050,522 
                
Redeemable non-controlling interests   1,607,926    1,750,628    262,522 
                
SHAREHOLDERS' EQUITY               
Ordinary shares (US$0.00002 par value, 500,000,000 shares authorized, 125,473,930 and 126,351,194 shares issued and outstanding as of December 31, 2015 and September 30, 2016, respectively)   18    18    3 
Additional paid-in capital   2,924,336    2,991,329    448,576 
Statutory reserves   351,855    378,576    56,771 
Accumulated other comprehensive income/(loss)   12,491    (3,293)   (494)
Treasury stock, at cost; 1,723,200 shares of ordinary shares as of December 31, 2015 and September 30, 2016, respectively   (13,876)   (13,876)   (2,081)
Accumulated retained earnings   1,047,045    1,861,214    279,105 
                
Total JinkoSolar Holding Co., Ltd. shareholders' equity   4,321,869    5,213,968    781,880 
                
Non-controlling interests   29,929    34,903    5,235 
                
Total liabilities and shareholders' equity   27,144,548    34,010,396    5,100,159 

 

 

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