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JinkoSolar Announces Third Quarter 2019 Financial Results

November 19, 2019

SHANGHAI, Nov. 19, 2019 /PRNewswire/ -- JinkoSolar Holding Co., Ltd. (“JinkoSolar” or the “Company”) (NYSE: JKS), one of the largest and most innovative solar module manufacturers in the world, today announced its unaudited financial results for the third quarter ended September 30, 2019.

Strategic Business Updates

Third Quarter 2019 Operational and Financial Highlights

Mr. Kangping Chen, JinkoSolar’s Chief Executive Officer commented, “I’m pleased to report strong operational and financial results for the third quarter which I believe marks a turning point for our business, as we begin to increasingly benefit from our technology transformation, industry-leading cost structure and expanding mono capacity. Module shipments during the quarter were 3,326 megawatts, an increase of 12.6% year-over-year and a slight decrease sequentially. Our integrated production costs continued to decrease, which, combined with our high-quality products and global distribution footprint, allowed us to initiate a reset of our gross margin, expanding it to 21.3% during the quarter, a significant 6 percentage point increase year-over-year. We are very optimistic about our growth prospects next quarter and throughout 2020 where we expect to see our overall profitability strengthen and margins expand.”

“Our technological transformation began in 2016 when we started producing mono wafers, and have since then accumulated three years of operational and technical expertise which we applied in our mono production facility in Leshan, Sichuan Province. This technological transformation is now largely complete, with Phase I of the production facility having begun operations and ramped up to full 5GW capacity during the second quarter of 2019. I believe this reflects our strategic foresight and strong execution capabilities. We are now at a strategic turning point in our corporate history with mono-based high-efficiency products accounting for nearly 75% of the total solar module shipments during the quarter, which is expected to increase to 99% in 2020.”

“The late announcement of the government subsidy policy for PV projects in China earlier this year delayed a large number of projects which we believe will restart during the fourth quarter and the first quarter of 2020. This delay is expected to drive strong domestic demand over the next six months, especially since China’s national renewable energy information management center recently announced that it is accelerating the formulation of subsidy policies for PV projects in 2020. With the cost of solar energy now falling below that of conventional energy sources in many markets across the globe and more aggressive clean energy targets being set by governments, we are also very confident and optimistic that global demand will significantly increase next year. We currently estimate that global installations next year will be approximately 20% higher than this year.”

“We continue to invest in product development to meet growing market demand for high-quality and efficient products. We expanded our production capacity of N-type cells to 800MW during the quarter, and are currently ramping up to full production which is expected to begin next quarter. Our N-type cells reached a record high efficiency of 24.58% in June 2019. We also recently unveiled a new Tiger module which, with its 20.78% efficiency and peak power output of 460W, offers our clients significantly improved efficiency, lower production costs and a better internal rate of return.”

“With domestic demand rebounding strongly and overseas demand driven by aggressive new clean energy targets, we expect the fourth quarter and full year 2020 to generate strong growth in shipments and strengthen our overall profitability and margin profile. With the demand growing rapidly both domestically and overseas for our mono products, we have strategically decided to convey our confidence in next year’s strong growth with total solar module shipments expected to be in the range of 18.0 GW to 20.0 GW for the full year 2020, an approximately 35% year-over-year increase. As one of the largest and most innovative solar module manufacturers in the world, we will continue to drive growth in this new era of grid parity and deliver long-term sustainable value to our shareholders.”

Third Quarter 2019 Financial Results

Total Revenues

Total revenues in the third quarter of 2019 were RMB7.48 billion (US$1.05 billion), an increase of 8.2% from RMB6.91 billion in the second quarter of 2019 and an increase of 11.8% from RMB6.69 billion in the third quarter of 2018. The sequential increase was mainly attributable to an increase in the average selling price of solar modules and increase of multi-crystalline silicon wafers sales in the third quarter of 2019. The year-over-year increase was mainly attributable to an increase in the shipment of solar modules in the third quarter of 2019.

Gross Profit and Gross Margin

Gross profit in the third quarter of 2019 was RMB1.59 billion (US$223.0 million), compared with RMB1.14 billion in the second quarter of 2019 and RMB997.6 million in the third quarter of 2018. The sequential increase was mainly attributable to (i) an increase in self-produced production volume by increasing shift toward integrated mono-based high-efficiency products capacity, (ii) continued reduction of integrated production cost, which maintains its industry-leading cost structure, and (iii) an increase in the average selling price of solar modules, and (iv) the reversal benefit of CVD and ADD of RMB 212.0 million (US$29.7 million), based on the final results of the fifth administrative review of the CVD and ADD order published by the U.S. Department of Commerce.

Gross margin was 21.3% in the third quarter of 2019, compared with 16.5% in the second quarter of 2019 and 14.9% in the third quarter of 2018. Excluding the CVD and ADD reversal benefit, gross margin was 18.5% in the third quarter of 2019, compared with 16.5% in the second quarter of 2019 and 12.8% in the third quarter of 2018. The sequential increase was attributable to (i) an increase in self-produced volume by increasing shift toward integrated mono-based high-efficiency products capacity, (ii) continued reduction of integrated production cost, which maintains its industry-leading cost structure, and (iii) an increase in the average selling price of solar modules.

Income from Operations and Operating Margin

Income from operations in the third quarter of 2019 was RMB638.8 million (US$89.4 million), compared with RMB260.3 million in the second quarter of 2019 and RMB188.0 million in the third quarter of 2018. Operating margin in the third quarter of 2019 was 8.5%, compared with 3.8% in the second quarter of 2019 and 2.8% in the third quarter of 2018. Excluding the CVD and ADD reversal benefit, operating margin in the third quarter of 2019 was 5.7%.

Total operating expenses in the third quarter of 2019 were RMB955.0 million (US$133.6 million), an increase of 8.1% from RMB883.6 million in the second quarter of 2019 and an increase of 18.0% from RMB809.6 million in the third quarter of 2018. The sequential increase was mainly due to an increase in shipping cost and loss on disposal of property, plant and equipment of RMB 42.1 million. The year-over-year increase was primarily due to an increase in shipping costs in the third quarter of 2019.

Total operating expenses accounted for 12.8% of total revenues in the third quarter of 2019, compared to 12.8% in the second quarter of 2019 and 12.1% in the third quarter of 2018. The year-over-year increase of operating expenses as a percentage of total revenue was primarily due to the increase in shipping costs as a percentage of total revenue associated with a higher percentage of shipments to overseas markets in the third quarter of 2019.

Interest Expense, Net

Net interest expense in the third quarter of 2019 was RMB94.9 million (US$13.3 million), a decrease of 18.7% from RMB116.8 million in the second quarter of 2019 and an increase of 70.7% from RMB55.6 million in the third quarter of 2018. The sequential decrease was mainly due to a decrease in interest expense associated with discounted notes receivables in the third quarter of 2019. The year-over-year increase was mainly due to (i) an increase in borrowings, (ii) the cessation of interest capitalization on certain completed solar projects, and (iii) issuance of additional convertible senior notes in May 2019.

Exchange (Loss)/Gain and Change in Fair Value of Foreign Exchange Derivatives

The Company recorded a net exchange loss (including Change in fair value of foreign exchange derivatives) of RMB130.7 million (US$18.3 million) in the third quarter of 2019, compared to a net exchange gain of RMB45.9 million in the second quarter of 2019 and a net exchange gain of RMB85.0 million in the third quarter of 2018. Given the rapid increase of overseas orders, the Company increased the foreign currency hedge ratio to hedge the next six months’ anticipated cash flow denominated in U.S. dollars. The Company recorded a loss arising from foreign exchange forward contracts with the appreciation of the U.S. dollars against the RMB in the third quarter of 2019.

Change in Fair Value of Interest Rate Swap

The Company entered into Interest Rate Swap agreements with several banks for the purpose of reducing interest rate risk exposure associated with the Company’s overseas solar power projects. The Company recorded a loss arising from change in fair value of interest rate swap of RMB18.1 million (US$2.5 million) in the third quarter of 2019, compared to a loss of RMB46.1 million in the second quarter of 2019. The loss arising from change in fair value of interest swap was primarily due to a continuous decrease in long-term interest rates. The Company did not elect to use hedge accounting for any of its derivatives.

Change in Fair Value of Convertible Senior Notes and Call Option

The Company issued US$85.0 million of 4.5% convertible senior notes due 2024 (the “Notes”) in May 2019 and has elected to measure the Notes at fair value. The Company recognized gain from a change in fair value of the Notes of RMB157.1 million (US$22.0million) in the third quarter of 2019, compared to a loss of RMB118.6 million in the second quarter of 2019. The change was primarily due to a decrease in the stock price of the Company in the third quarter of 2019.

Concurrent with the issuance of the Notes in May 2019, the Company entered into a call option transaction with an affiliate of Credit Suisse Securities (USA) LLC. The Company accounted for the call option transactions as freestanding derivative assets in its consolidated balance sheets, which is marked to market at each reporting period. The Company recorded a loss from a change in fair value of the call option of RMB74.2 million (US$10.4 million) in the third quarter of 2019, compared to a gain of RMB73.5 million in the second quarter of 2019. The change was primarily due to a decrease in the stock price of the Company in the third quarter of 2019.

Equity in (Loss)/Income of Affiliated Companies

The Company indirectly holds a 20% equity interest in Sweihan PV Power Company P.J.S.C, a developer and operator of solar power projects in Dubai, and accounts for its investment using the equity method. The Company also holds a 30% equity interest in Jiangsu Jinko-Tiansheng Co., Ltd, which processes and assembles PV modules as an OEM manufacturer, and accounts for its investments using the equity method. The Company recorded equity in loss of affiliated companies of RMB28.3 million (US$4.0 million) in the third quarter of 2019, compared with a loss of RMB28.6 million in the second quarter of 2019 and an income of RMB4.9 million in the third quarter of 2018. The loss primarily arose from change in fair value of interest rate swap agreements purchased by Sweihan PV Power Company P.J.S.C. due to a continuous decrease in long-term interest rates. Hedge accounting was not applied for the derivative.

Income Tax Benefit / (Expense), Net

The Company recorded an income tax expense of RMB117.2 million (US$16.4 million) in the third quarter of 2019, compared with an income tax benefit of RMB55.9 million in the second quarter of 2019 and an income tax expense of RMB61.2 million in the third quarter of 2018.

The sequential change was mainly due to additional 2018 income tax deduction for R&D costs approved by the local tax bureau in the second quarter of 2019.

Net Income and Earnings per Share

Net income attributable to the Company’s ordinary shareholders was RMB363.6 million (US$50.9 million) in the third quarter of 2019, compared with RMB125.4 million in the second quarter of 2019 and RMB189.1 million in the third quarter of 2018.

Basic and diluted earnings per ordinary share were RMB2.062 (US$0.288) and RMB1.166 (US$0.163), respectively, during the third quarter of 2019. This translates into basic and diluted earnings per ADS of RMB8.248 (US$1.152) and RMB4.664 (US$0.652), respectively.

Non-GAAP net income attributable to the Company’s ordinary shareholders in the third quarter of 2019 was RMB301.2 million (US$42.1 million), compared with RMB202.9 million in the second quarter of 2019 and RMB206.3 million in the third quarter of 2018.

Non-GAAP basic and diluted earnings per ordinary share were RMB1.708 (US$0.239) and RMB1.532 (US$0.214), respectively, during the third quarter of 2019. This translates into non-GAAP basic and diluted earnings per ADS of RMB6.832 (US$0.956) and RMB6.128 (US$0.856), respectively.

Financial Position

As of September 30, 2019, the Company had RMB4.14 billion (US$579.8 million) in cash and cash equivalents and restricted cash, compared with RMB4.81 billion as of June 30, 2019.

As of September 30, 2019, the Company’s accounts receivables due from third parties were RMB4.44 billion (US$621.3million), compared with RMB4.94 billion as of June 30, 2019.

As of September 30, 2019, the Company’s inventories were RMB6.07 billion (US$849.6 million), compared with RMB6.63 billion as of June 30, 2019.

Receivables related to CVD and ADD reversal benefits with the amount of RMB 427.1 million (US$59.7 million) were record as non-current assets under the line item “Other assets - third parties” on the Company’s balance sheet as of September 30, 2019 based on the Company’s latest best estimate of related cash collection.

As of September 30, 2019, the Company’s total interest-bearing debts were RMB12.22 billion (US$1.71 billion), of which RMB2.21 billion (US$309.2 million) was related to the Company’s overseas downstream solar projects, compared with RMB13.34 billion, of which RMB2.16 billion was related to the Company’s overseas downstream solar projects, as of June 30, 2019. The decrease of interest-bearing debts was mainly due to a decrease in borrowings.

In November, the Company entered into an agreement to sell two solar power plants in Mexico with a combined capacity of 155 MW to White River Renewables, a Mexican renewable energy company. White River Renewables is jointly sponsored by Riverstone Holdings, an energy and power-focused private investment firm, and White Summit Capital, a Switzerland-based infrastructure investments and asset management firm. The final closing of the transaction is subjected to customary approvals. The sale of overseas power plants is consistent with the Company’s growth strategy to focus on its solar manufacturing business.

Assets and liabilities related to these two solar power plants were reclassified as assets/liabilities held for sale as of September 30, 2019. The Company will further strengthen its balance sheet by reducing RMB950.2 million (US$132.9 million) of interest-bearing debts once the transaction is completed.

Third Quarter 2019 Operational Highlights

Solar Module Shipments

Total solar module shipments in the third quarter of 2019 were 3,326 MW.

Solar Products Production Capacity

As of September 30, 2019, the Company’s in-house annual silicon wafer, solar cell and solar module production capacity was 14.5 GW (including 11.0 GW of mono wafers), 9.2 GW (all for PERC cells) and 15.0 GW, respectively.

JinkoSolar expects its annual silicon wafer, solar cell and solar module production capacity to reach 15.0 GW (including 11.5 GW of mono wafers), 10.6 GW (including 9.8 GW of PERC cells) and 16.0 GW, respectively, by the end of 2019.

Operations and Business Outlook

Fourth Quarter and Full Year 2019 Guidance

The Company’s business outlook is based on management’s current views and estimates with respect to market conditions, production capacity, the Company’s order book and the global economic environment. This outlook is subject to uncertainty on final customer demand and sale schedules. Management’s views and estimates are subject to change without notice.

For the fourth quarter of 2019, the Company does not expect the benefit of Anti-dumping (“ADD”) and Countervailing Duty (“CVD”) and expects total solar module shipments to be in the range of 4.2 GW to 4.4 GW. Total revenue for the fourth quarter is expected to be in the range of US$11.7 billion to US$12.3 billion. Gross margin for the fourth quarter is expected to be between 18.5% and 20.5%.

For the full year 2019, the Company estimates total solar module shipments to be in the range of 14.0 GW to 14.2 GW.

Full Year 2020 Guidance

Solar Module Shipments

Total solar module shipments for the full year of 2020 would be in the range of 18.0 GW to 20.0 GW

Solar Products Production Capacity

JinkoSolar expects its annual silicon wafer, solar cell and solar module production capacity to reach 20.0 GW (including 18.0 GW of mono wafers), 10.6 GW (including 800 MW N-type cells) and 22.0 GW, respectively, by the end of 2020.

Recent Business Developments

Conference Call Information

JinkoSolar’s management will host an earnings conference call on Tuesday, November 19, 2019 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 3027 6500

U.S. Toll Free:

+1 855-824-5644

Passcode:

22225201#

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 26, 2019. The dial-in details for the replay are as follows:

International:

+61 2 8325 2405

U.S.:

+1 646 982 0473

Passcode:

319324284#

Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of JinkoSolar’s website at www.jinkosolar.com.

About JinkoSolar Holding Co., Ltd.

JinkoSolar (NYSE: JKS) is one of the largest and most innovative solar module manufacturers in the world. JinkoSolar distributes its solar products and sells its solutions and services to a diversified international utility, commercial and residential customer base in China, the United States, Japan, Germany, the United Kingdom, Chile, South Africa, India, Mexico, Brazil, the United Arab Emirates, Italy, Spain, France, Belgium, and other countries and regions. JinkoSolar has built a vertically integrated solar product value chain, with an integrated annual capacity of 14.5 GW for silicon wafers, 9.2 GW for solar cells, and 15 GW for solar modules, as of September 30, 2019.

JinkoSolar has over 15,000 employees across its 7 productions facilities globally, 15 oversea subsidiaries in Japan, Korea, Singapore, India, Turkey, Germany, Italy, Switzerland, United States, Canada, Mexico, Brazil, Chile, Australia and United Arab Emirates, and global sales teams in China, United Kingdom, France, Netherlands, Spain, Bulgaria, Greece, Romania, Ukraine, Jordan, Saudi Arabia, Tunisia, Egypt, Morocco, Nigeria, Kenya, South Africa, Costa Rica, Colombia, Panama and Argentina.

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

Use of Non-GAAP Financial Measures

To supplement its consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles (“GAAP”), JinkoSolar uses certain non-GAAP financial measures including, non-GAAP net income, non-GAAP earnings per Share, and non-GAAP earnings per ADS, which are adjusted from the comparable GAAP results to exclude certain expenses or incremental ordinary shares relating to share-based compensation and, convertible senior notes:

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, 2019, which was RMB7.1477 to US$1.00. No representation is intended to imply that the Renminbi amounts could have been, or could be, converted, realized, or settled into U.S. dollars at that rate or any other rate. The percentages stated in this press release are calculated based on Renminbi.

Safe-Harbor Statement

This press release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends, “plans,” “believes,” “estimates” and similar statements. Among other things, the quotations from management in this press release and the Company’s operations and business outlook, contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in JinkoSolar’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. Except as required by law, the Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

For investor and media inquiries, please contact:

In China:
Ripple Zhang
JinkoSolar Holding Co., Ltd.
Tel: +86 21-5183-3105
Email: ir@jinkosolar.com

Christian Arnell
Christensen
Tel: +86-10-5900-2940
Email: carnell@christensenir.com

In the U.S.:
Ms. Linda Bergkamp
Christensen
Tel: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com

JINKOSOLAR HOLDING CO., LTD.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except ADS and Share data)


For the quarter ended


For the nine months ended



September 30, 2018


June 30, 2019


September 30, 2019


September 30, 2018


September 30, 2019



RMB


RMB


RMB


USD


RMB


RMB


USD


Revenues from third parties

6,601,414


6,912,301


7,473,562


1,045,590


15,891,621


20,063,090


2,806,930

















Revenues from related parties

93,401


725


8,194


1,146


1,430,661


153,740


21,509

















Total revenues

6,694,815


6,913,026


7,481,756


1,046,736


17,322,282


20,216,830


2,828,439

















Cost of revenues

(5,697,186)


(5,769,143)


(5,888,015)


(823,764)


(14,940,962)


(16,514,869)


(2,310,515)

















Gross profit

997,629


1,143,883


1,593,741


222,972


2,381,320


3,701,961


517,924

















Operating expenses:















Selling and marketing

(476,640)


(561,959)


(596,192)


(83,410)


(1,156,613)


(1,617,465)


(226,292)


General and administrative

(228,862)


(248,376)


(276,699)


(38,712)


(530,201)


(716,977)


(100,309)


Research and development

(104,105)


(73,258)


(82,059)


(11,480)


(272,394)


(232,695)


(32,555)


Impairment of long-lived assets

-


-


-


-


(14,548)


-


-


Total operating expenses

(809,607)


(883,593)


(954,950)


(133,602)


(1,973,756)


(2,567,137)


(359,156)

















Income from operations

188,022


260,290


638,791


89,370


407,564


1,134,824


158,768


Interest expenses, net

(55,600)


(116,754)


(94,892)


(13,276)


(221,645)


(307,756)


(43,057)


Subsidy income

4,742


10,517


33,394


4,673


43,942


48,651


6,808


Exchange gain

118,712


87,487


16,304


2,281


69,687


22,811


3,191


Change in fair value of interest rate swap

12,781


(46,118)


(18,123)


(2,536)


39,646


(94,440)


(13,213)


Change in fair value of foreign exchange derivatives

(33,726)


(41,619)


(146,998)


(20,566)


(46,238)


(170,503)


(23,854)


Convertible senior notes issuance costs

-


(18,646)


-


-


-


(18,646)


(2,609)


Change in fair value of convertible senior notes and call option

-


(45,070)


82,932


11,603


-


37,862


5,297


Other income, net

9,983


7,302


1,742


244


28,105


16,442


2,300


Loss from disposal of subsidiaries

-


-


-


-


(9,425)


-


-


Income before income taxes

244,914


97,389


513,150


71,793


311,636


669,245


93,631


Income tax (expense)/benefit

(61,157)


55,917


(117,152)


(16,390)


(47,860)


(56,986)


(7,973)


Equity in (loss)/gain of affiliated companies

4,916


(28,621)


(28,305)


(3,960)


27,699


(80,635)


(11,281)


Net income

188,673


124,685


367,693


51,443


291,475


531,624


74,377


Less: Net income/(loss) attributable to non-controlling
interests

(415)


(725)


4,129


578


(191)


2,465


345


Net income attributable to JinkoSolar
Holding Co., Ltd.'s ordinary shareholders

189,088


125,410


363,564


50,865


291,666


529,159


74,032

















Net income attributable to JinkoSolar Holding Co., Ltd.'s
ordinary shareholders per share:















Basic

1.210


0.753


2.062


0.288


1.910


3.176


0.444


Diluted

1.210


0.315


1.166


0.163


1.900


3.007


0.421

















Net income attributable to JinkoSolar Holding Co., Ltd.'s
ordinary shareholders per ADS:















Basic

4.840


3.012


8.248


1.152


7.640


12.704


1.776


Diluted

4.840


1.260


4.664


0.652


7.600


12.028


1.684

















Weighted average ordinary shares outstanding:















Basic

156,485,510


166,605,808


176,336,307


176,336,307


152,777,860


166,612,951


166,612,951


Diluted

156,703,443


165,385,410


196,544,769


196,544,769


153,445,140


177,583,926


177,583,926

















Weighted average ADS outstanding:















Basic

39,121,378


41,651,452


44,084,077


44,084,077


38,194,465


41,653,238


41,653,238


Diluted

39,175,861


41,346,352


49,136,192


49,136,192


38,361,285


44,395,981


44,395,981

















UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

















Net income

188,673


124,685


367,693


51,443


291,475


531,624


74,377


Other comprehensive income:















-Foreign currency translation adjustments

28,720


48,233


(666)


(122)


43,335


41,144


5,756


-Change in the instrument-specific credit risk

-


5,546


5,546


805


-


57


8


Comprehensive income

217,393


178,464


372,573


52,126


334,810


572,825


80,141


Less: Comprehensive income/(loss) attributable to non-controlling
interests

(415)


(725)


4,129


578


(191)


2,465


345


Comprehensive income attributable to JinkoSolar Holding Co., Ltd.'s
ordinary shareholders

217,808


179,189


368,444


51,548


335,001


570,360


79,796



Reconciliation of GAAP and non-GAAP Results
















1. Non-GAAP earnings per share and non-GAAP earnings per ADS






























GAAP net income attributable to ordinary shareholders

189,088


125,410


363,564


50,865


291,666


529,159


74,032

















Convertible senior notes issuance costs

-


18,646


-


-


-


18,646


2,609

















Change in fair value of convertible senior notes and call option

-


45,070


(82,932)


(11,603)


-


(37,862)


(5,297)

















Net interest expenses of convertible senior notes and call option

1


2,914


6,190


866


2


9,103


1,274

















Exchange loss/(gain) on convertible senior notes and call option

3


(721)


7,834


1,096


3


7,114


995

















Stock-based compensation expense

17,255


11,587


6,546


916


32,331


11,208


1,568

















Non-GAAP net income attributable to ordinary shareholders

206,347


202,906


301,202


42,140


324,002


537,368


75,181

















Non-GAAP earnings per share attributable to ordinary shareholders -















Basic

1.320


1.218


1.708


0.239


2.120


3.225


0.451


Diluted

1.320


1.218


1.532


0.214


2.110


3.026


0.423

















Non-GAAP earnings per ADS attributable to ordinary shareholders -















Basic

5.280


4.872


6.832


0.956


8.480


12.900


1.804


Diluted

5.280


4.872


6.128


0.856


8.440


12.104


1.692

















Non-GAAP weighted average ordinary shares outstanding















Basic

156,485,510


166,605,808


176,336,307


176,336,307


152,777,860


166,612,951


166,612,951


Diluted

156,703,443


166,605,808


196,544,769


196,544,769


153,445,140


177,583,926


177,583,926

















Non-GAAP weighted average ADS outstanding















Basic

39,121,378


41,651,452


44,084,077


44,084,077


38,194,465


41,653,238


41,653,238


Diluted

39,175,861


41,651,452


49,136,192


49,136,192


38,361,285


44,395,982


44,395,982

















JINKOSOLAR HOLDING CO., LTD.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)


December 31,
2018


Sep 30, 2019


RMB


RMB


USD

ASSETS






Current assets:






Cash and cash equivalents

3,104,917


3,705,424


518,408

Restricted cash

377,111


439,052


61,426

Restricted short-term investments

4,058,419


6,457,776


903,476

Accounts receivable, net - related parties

675,768


518,402


72,527

Accounts receivable, net - third parties

5,436,371


4,440,765


621,286

Notes receivable, net - third parties

1,010,469


1,926,626


269,545

Advances to suppliers, net - third parties

665,221


1,877,763


262,709

Inventories, net

5,743,328


6,072,596


849,587

Forward contract receivables

1,192


741


104

Prepayments and other current assets - related
parties

67,730


57,407


8,032

Derviatvie assets

847


-


-

Prepayments and other current assets

1,712,889


1,797,770


251,516

Held-for-sale assets*

-


1,235,274


172,821

Total current assets

22,854,262


28,529,596


3,991,437







Non-current assets:






Restricted cash

921,300


641,137


89,698

Project Assets

1,770,621


1,572,070


219,941

Long-term investments

25,531


247,757


34,662

Property, plant and equipment, net

8,275,900


8,704,097


1,217,748

Land use rights, net

574,945


600,989


84,081

Intangible assets, net

35,361


34,850


4,876

Financing lease right-of-use assets, net

-


971,484


135,916

Operating lease right-of-use assets, net

-


259,763


36,342

Deferred tax assets

338,069


331,508


46,380

Call Option-concurrent with issuance of convertible
senior notes

-


211,524


29,593

Other assets - related parties

144,984


113,705


15,908

Other assets - third parties

912,210


2,808,288


392,894

Total non-current assets

12,998,921


16,497,172


2,308,039







Total assets

35,853,183


45,026,768


6,299,476







LIABILITIES






Current liabilities:






Accounts payable - related parties

698


7,018


982

Accounts payable - third parties

5,327,094


4,791,342


670,333

Notes payable - related parties

35,000


-


-

Notes payable - third parties

6,036,577


8,076,603


1,129,958

Accrued payroll and welfare expenses

810,921


792,067


110,814

Advances from related parties

910


915


128

Advances from third parties

2,395,229


3,987,764


557,909

Income tax payable

70,240


111,382


15,583

Other payables and accruals

2,281,025


2,873,540


402,023

Other payables due to related parties

20,819


15,582


2,180

Forward contract payables

9,464


112,133


15,688

Convertible senior notes - current

69


-


-

Financing lease liabilities - current

-


252,899


35,382

Operating lease liabilities - current

-


31,076


4,348

Derivative liability - current

12,786


-


-

Bond payable and accrued interests

10,318


-


-

Short-term borrowings from third parties,
including current portion of long-term bank
borrowings

7,103,399


7,880,570


1,102,532

Guarantee liabilities to related parties

26,639


24,867


3,479

Held-for-sale liabilities*

-


1,075,166


150,421

Total current liabilities

24,141,188


30,032,924


4,201,760







Non-current liabilities:






Long-term borrowings

1,954,831


2,023,159


283,050

Convertible senior notes

-


557,182


77,953

Long-term payables

338,412


-


-

Bond payables

299,475


-


-

Accrued warranty costs - non current

573,641


605,940


84,774

Financing lease liabilities*

-


294,194


41,159

Operating lease liabilities*

-


229,902


32,165

Deferred tax liability

25,893


25,893


3,623

Guarantee liabilities to related parties
- non current

65,765


46,492


6,504

Total non-current liabilities

3,258,017


3,782,762


529,228







Total liabilities

27,399,205


33,815,686


4,730,988







SHAREHOLDERS' EQUITY






Ordinary shares (US$0.00002 par value, 500,000,000
shares authorized, 156,864,737 and 177,185,237
shares issued and outstanding as of December 31,
2018 and September 30, 2019, respectively)

22


25


3

Additional paid-in capital

4,010,740


4,549,236


636,462

Statutory reserves

570,176


570,176


79,771

Accumulated other comprehensive income

70,301


111,502


15,599

Treasury stock, at cost; 1,723,200 ordinary shares
as of December 31, 2018 and September 30, 2019

(13,876)


(13,876)


(1,941)

Accumulated retained earnings

3,202,528


3,731,687


522,082







Total JinkoSolar Holding Co., Ltd. shareholders' equity

7,839,891


8,948,750


1,251,976







Non-controlling interests

614,087


2,262,332


316,512







Total liabilities and shareholders' equity

35,853,183


45,026,768


6,299,476







Note: *In November, the Company entered into an agreement to sell two solar power plants in Mexico
with a combined capacity of 155 MW to White River Renewables, a Mexican renewable energy
company. Assets and liabilities related to these two solar power plants were reclassified as
assets/liabilities held for sale as of September 30, 2019.

View original content: http://www.prnewswire.com/news-releases/jinkosolar-announces-third-quarter-2019-financial-results-300960741.html

SOURCE JinkoSolar Holding Co., Ltd.