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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 February 2017

 

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 JinkoSolar Announces Fourth Quarter and Full Year 2016 Financial Results
   
   

 

 

 

 

 

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: February 27, 2017

 

 

 

 

Exhibit 99.1

 

JinkoSolar Announces Fourth Quarter and Full Year 2016 Financial Results

 

SHANGHAI, China, February 27, 2017 — 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, 2016.

 

In November 2016, the Company completed sale of JinkoSolar Power Engineering Group Limited (“Jinko Power”) downstream business in China to Shangrao Kangsheng Technology Co., Ltd. (the “Buyer”), 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. According to applicable accounting standards, assets and liabilities related to Jinko Power, including comparatives, are reclassified as assets/liabilities held for sale, while results of operations related to Jinko Power, including comparatives, are reported as income or loss from discontinued operations. Figures presented in this release are related to continuing operations only, and exclude results from Jinko Power unless indicated otherwise. The Company recognized the gain on disposal of discontinued operations of RMB1.01 billion (US$145.2 million) reported in the discontinued operations, and received cash of RMB1.73 billion (US$250.0 million) in the fourth quarter of 2016. The transaction between the related parties mainly includes the modules sales and financing obligation guarantee.

 

Fourth Quarter 2016 Highlights

 

Results presented herein exclude Jinko Power-related discontinued operations, unless specified otherwise

 

·Total solar module shipments were 1,733 megawatts ("MW"), an increase of 7.9% from 1,606 MW in the third quarter of 2016 and an increase of 1.3% from 1,710 MW in the fourth quarter of 2015.

 

·Total revenues were RMB5.12 billion (US$737.6 million), a decrease of 3.9% from the third quarter of 2016 and a decrease of 13.7% from the fourth quarter of 2015. Total revenues including electricity revenue from discontinued operations were RMB5.23 billion (US$753.0 million), a decrease of 8.3% from the third quarter of 2016 and a decrease of 13.9% from the fourth quarter of 2015.

 

·Gross margin was 14.3%, compared with 19.2% in the third quarter of 2016 and 19.0% in the fourth quarter of 2015.

 

·Income from operations was RMB77.9 million (US$11.2 million), compared with RMB433.3 million in the third quarter of 2016 and RMB465.9 million in the fourth quarter of 2015.

 

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·Net income attributable to the Company’s ordinary shareholders from continuing operations was RMB145.8 million (US$21.0 million) in the fourth quarter of 2016, compared with RMB212.2 million in the third quarter of 2016 and RMB429.7 million in the fourth quarter of 2015.

 

·Net income attributable to the Company’s ordinary shareholders from continuing and discontinued operations was RMB999.6 million (US$144.0 million), compared with RMB233.7 million in the third quarter of 2016 and RMB349.4 million in the fourth quarter of 2015.

 

·Diluted earnings per American depositary share ("ADS") from continuing operations were RMB4.56 (US$0.64).

 

·Total diluted earnings per ADS from continuing and discontinued operations were RMB31.28 (US$4.48), compared with RMB6.04 in the third quarter of 2016 and RMB10.88 in the fourth quarter of 2015.

 

·Non-GAAP net income attributable to the Company's ordinary shareholders from continuing operations in the fourth quarter of 2016 was RMB228.6 million (US$32.9 million), compared with RMB235.3 million in the third quarter of 2016 and RMB538.9 million in the fourth quarter of 2015.

 

·Non-GAAP basic and diluted earnings per ADS from continuing operations were RMB7.24 (US$1.04) and RMB7.16 (US$1.04), respectively, in the fourth quarter of 2016.

 

Full Year 2016 Highlights

 

Results presented herein exclude Jinko Power-related discontinued operations, unless specified otherwise

 

·Total solar module shipments were 6,656 MW, an increase of 47.5% from 4,512 MW for the full year 2015.

 

·Total revenues for the full year 2016 were RMB21.40 billion (US$3.08 billion), an increase of 38.5% from RMB15.45 billion for the full year 2015. Total revenues including electricity revenue from discontinued operations were RMB22.35 billion (US$3.22 billion), an increase of 39.0% from RMB16.08 billion for the full year 2015.

 

·Gross margin was 18.1% for the full year 2016, compared with 19.0% for the full year 2015.

 

·Income from operations was RMB1.35 billion (US$194.3 million), compared with RMB1.12 billion in the full year 2015.

 

·Net income attribute to the Company’s ordinary shareholders from continuing operations was RMB990.7 million (US$142.7 million) for the full year 2016, compared with RMB766.6 million for the full year 2015.

 

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·Net income attributable to the Company’s ordinary shareholders from continuing and discontinued operation was RMB1.83 billion (US$263.1 million) for the full year 2016, compared with RMB683.8 million for the full year 2015.

 

·Diluted earnings per ADS from continuing operations for the full year 2016 were RMB29.04 (US$4.20), compared with RMB24.00 for the full year 2015.

 

·Total diluted earnings per ADS from continuing and discontinued operations for the full year 2016 were RMB53.40 (US$7.72), compared with RMB21.36 for the full year 2015.

 

·Non-GAAP net income attributable to the Company’s ordinary shareholders from continuing operations for the full year 2016 was RMB1.25 billion (US$179.4 million), compared with RMB1.06 billion for the full year 2015.

 

·Non-GAAP basic and diluted earnings per ADS from continuing operations for the full year 2016 were RMB39.60 (US$5.72) and RMB36.28 (US$5.24), respectively.

 

Mr. Kangping Chen, JinkoSolar’s Chief Executive Officer commented, “I am pleased to announce a strong quarter to finish out the year with module shipments hitting 1,733 MW and 6,656 MW in the fourth quarter and full year 2016, respectively. I am proud to say that this puts us firmly in the position as the largest module supplier globally. Total revenues during the quarter hit US$737.6 million and US$3.08 billion for the whole year. While market sentiment is gloomy overall, we remain optimistic about the global demand in 2017.”

 

“We successfully complete the spin-off process of Jinko Power’s project business which generated US$145.2 million in investment gain for JinkoSolar and strengthened our balance sheet by cutting debt to US$892 million from US$2.1 billion. In January 2017, we further cut our debt by repurchasing almost all of our convertible notes due in 2019 at holders’ put option. These initiatives have increased our corporate flexibility and reinforced our financial position which will allow us to take advantage of more opportunities in 2017.”

 

“We further consolidated our leading position across a number of key and emerging markets during the quarter. China remains our largest market where we expect growth momentum to continue during the first half of 2017 as rush orders come in before the FiT cut in June 2017. Demand during the second half of 2017 may soften, but distributed generation and Top Runner projects are expected to make up for the demand. After a sharp decline during the quarter, ASPs in the US have begun to stabilize. While uncertainties remain, we believe that the growth trajectory of the US market won’t deviate significantly, especially with ITC still valid. India, with its abundant sunlight and increasing demand for power, has created ideal market conditions for rapid growth. We are very optimistic about our potential in this market and have been rapidly expanding our team there. We will also reinforce our leading position in Latin America and the Middle East, two markets that remain full of opportunities.”

 

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“We remain focused on high-efficiency technologies and stringent quality controls. Demand for our PERC products continues to be strong and as a result, we have been adjusting our production capacity to accommodate this market trend since the first half of 2016.”

 

“In conclusion, I am proud of what we have achieved throughout the past quarter and year. We have extensive experience having faced similar market headwinds before, leaving us confident in our strategy and our ability to focus on developing technology, building our brand equity, keeping a lid on costs and improving our financial strength to further drive shareholder value.”

 

Fourth Quarter 2016 Financial Results

 

Results presented herein exclude Jinko Power-related discontinued operations, unless specified otherwise

 

Total Revenues

 

Total revenues in the fourth quarter of 2016 were RMB5.12 billion (US$737.6 million), a decrease of 3.9% from RMB5.33 billion in the third quarter of 2016 and a decrease of 13.7% from RMB5.94 billion in the fourth quarter of 2015. The sequential and year-over-year decreases were mainly attributable to a decline in average selling prices of solar modules in the fourth quarter of 2016.

 

Gross Profit and Gross Margin

 

Gross profit in the fourth quarter of 2016 was RMB730.0 million (US$105.1 million), compared with RMB1,026.1 million in the third quarter of 2016 and RMB1,129.8 million in the fourth quarter of 2015. The sequential and year-over-year decreases were mainly attributable to a decline in average selling prices of solar modules in the fourth quarter of 2016.

 

Gross margin was 14.3% in the fourth quarter of 2016 compared with 19.2% in the third quarter of 2016 and 19.0% in the fourth quarter of 2015.

 

Income from Operations and Operating Margin

 

Income from operations in the fourth quarter of 2016 was RMB77.9 million (US$11.2 million), compared with RMB433.3 million in the third quarter of 2016 and RMB465.9 million in the fourth quarter of 2015. Operating margin in the fourth quarter of 2016 was 1.5%, compared with 8.1% in the third quarter of 2016 and 7.8% in the fourth quarter of 2015.

 

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Total operating expenses in the fourth quarter of 2016 were RMB652.1 million (US$93.9 million), an increase of 10.0% from RMB592.8 million in the third quarter of 2016 and a decrease of 1.8% from RMB663.9 million in the fourth quarter of 2015. The sequential increase was mainly due to the increase of the shipping cost, and the provision for impairment and disposal of property, plant and equipment, partially offset by the impact of the reversal of warranty expense during the fourth quarter. We made downward adjustments to our accrued warranty expense in the fourth quarter, to reflect the general declining trend of the average selling price of solar modules, which is a primary input into the estimated warranty expense. Based on the updated warranty estimation, we reversed the warranty expense related to prior years and the first nine months of 2016 by RMB92.1 million (US$13.3 million) and RMB6.0 million (US$0.9 million) respectively.

 

Total operating expenses accounted for 12.7% of total revenues in the fourth quarter of 2016, compared to 11.1% in the third quarter of 2016 and 11.2% in the fourth quarter of 2015.

 

Interest Expense, Net

 

Net interest expense in the fourth quarter of 2016 was RMB74.5 million (US$10.7 million), a decrease of 43.9% from RMB132.9 million in the third quarter of 2016 and a decrease of 15.2% from RMB87.9 million in the fourth quarter of 2015.

 

Exchange Gain / (Loss), Net

 

The Company recorded a net exchange gain of RMB17.7 million (US$2.6 million) including change in fair value of forward contracts in the fourth quarter of 2016, compared to a net exchange loss of RMB7.2 million in the third quarter of 2016 and a net exchange gain of RMB89.8 million in the fourth 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 RMB14.7 million (US$2.1 million) in the fourth quarter of 2016. The Company repurchased substantially all the outstanding convertible senior notes in January 2017.

 

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Income Tax Expense / (Benefit), Net

 

The Company recorded an income tax benefit of RMB49.2 million (US$7.1 million) from continuing operations in the fourth quarter of 2016, compared with an income tax expense of RMB116.0 million in the third quarter of 2016 and an income tax expense of RMB48.6 million during the fourth quarter of 2015. The sequential change was mainly due to the successful renewal of ‘National High and New Technology Enterprise’ license for a significant subsidiary and its entitlement to a preferential tax rate.

 

Income / (loss) from Discontinued Operations, Net of Tax

 

Income from discontinued operations, net of tax in the fourth quarter of 2016 was RMB 857.5 million (US$123.5 million), compared with an income of RMB82.3 million in the third quarter of 2016 and a loss of RMB34.5 million in the fourth quarter of 2015.

 

Net Income and Earnings per Share

 

Net income attributable to the Company’s ordinary shareholders in the fourth quarter of 2016 was RMB999.6 million (US$144.0 million), compared with RMB233.7 million in the third quarter of 2016 and RMB349.4 million in the fourth quarter of 2015.

 

Basic and diluted earnings per ordinary share from continuing operations were RMB1.15 (US$0.17) and RMB1.14 (US$0.16), respectively, during the fourth quarter of 2016. This translates into basic and diluted earnings per ADS of RMB4.60 (US$0.68) and RMB4.56 (US$0.64), respectively.

 

Total basic and diluted earnings per ordinary share from both continuing and discontinued operations were RMB7.90 (US$1.14) and RMB7.82 (US$1.12), respectively, during the fourth quarter of 2016. This translates into basic and diluted earnings per ADS of RMB31.60 (US$4.56) and RMB31.28 (US$4.48), respectively.

 

Non-GAAP net income from continuing operations in the fourth quarter of 2016 was RMB228.6 million (US$32.9 million), compared with RMB235.3 million in the third quarter of 2016 and RMB538.9 million in the fourth quarter of 2015.

 

Non-GAAP basic and diluted earnings from continuing operation per ordinary share were RMB1.81 (US$0.26) and RMB1.79 (US$0.26), respectively during the fourth quarter of 2016. This translates into non-GAAP basic and diluted earnings per ADS of RMB7.24 (US$1.04) and RMB7.16 (US$1.04), respectively.

 

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Financial Position

 

As of December 31, 2016, the Company had RMB2.82 billion (US$406.2 million) in cash and cash equivalents and restricted cash, compared with RMB2.95 billion as of December 31, 2015.

 

As of December 31, 2016, the Company’s accounts receivables due from third parties were RMB4.75 billion (US$684.7 million), compared with RMB2.69 billion as of December 31, 2015.

 

As of December 31, 2016, the Company’s inventories were RMB4.47 billion (US$644.3 million) due to large demand in 2017 Q1, compared with RMB3.20 billion as of December 31, 2015.

 

As of December 31, 2016, the Company's total interest-bearing debts were RMB6.19 billion (US$891.7 million), compared with RMB6.27 billion as of December 31, 2015.

 

Full Year 2016 Financial Results

 

Results presented herein exclude Jinko Power-related discontinued operations, unless specified otherwise

 

Total Revenues

 

Total revenues for the full year 2016 were RMB21.4 billion (US$3.08 billion), an increase of 38.5% from RMB15.45 billion for the full year 2015. The increase in total revenues was mainly attributable to the increase in shipments of solar modules.

 

Gross Profit and Gross Margin

 

Gross profit for the full year 2016 was RMB3.87 billion (US$557.3 million), an increase of 32.0% from RMB2.93 billion for the full year 2015. Gross margin was 18.1% for the full year 2016, compared with 19.0% for the full year 2015.

 

Income from Operations and Operating Margin

 

Income from operations for the full year 2016 was RMB1.35 billion (US$194.3 million), compared with RMB1.12 billion for the full year 2015. Operating margin for the full year 2016 was 6.3%, compared with 7.3% for the full year 2015.

 

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Total operating expenses for the full year 2016 were RMB2.52 billion (US$363.0 million), an increase of 39.3% from RMB1.81 billion for the full year 2015. Operating expenses represented 11.8% of total revenues for the full year 2016, compared with 11.7% for the full year 2015. The increase in total operating expense was primarily due to the increase of shipping cost, the provision for impairment of property, plant and equipment, partially offset by the impact of warranty expense reversals. The provision for impairment of property, and plant and equipment was due to replacement of the old machines to upgrade production automation.

 

Interest Expense, Net

 

Net interest expense for the full year 2016 was RMB359.3 million (US$51.7 million), an increase of 15.5% from RMB311.0 million in 2015.

 

Exchange Gain / (Loss), Net

 

The Company recorded an exchange gain of RMB156.2 million (US$22.5 million) in the full year 2016. The Company had net exchange loss of RMB30.0 million in 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 RMB110.2 million (US$15.9 million) for the full year 2016, compared with a loss of RMB14.6 million in 2015. The Company repurchased substantially all the convertible senior notes in January 2017.

 

Income Tax Expense, Net

 

The Company recognized an income tax expense of RMB257.5 million (US$37.1 million) for the full year 2016, compared with an income tax expense of RMB100.5 million in 2015.

 

Income / (Loss) from Discontinued Operations, Net of Tax

 

Income from discontinued operations, net of tax, in 2016 was RMB1,001.6 million (US$144.3 million), compared with an income of RMB93.8 million in 2015.

 

Net Income and Earnings per Share

 

Net income attributable to the Company’s ordinary shareholders for the full year 2016 was RMB1.83 billion (US$263.1 million), compared with a net income of RMB683.8 million in 2015.

 

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Basic and diluted income per share from continuing operations for the full year 2016 was RMB7.87 (US$1.13) and RMB7.26 (US$1.05), respectively. This translates into basic and diluted earnings per ADS of RMB31.48 (US$4.52) and RMB29.04 (US$4.20), respectively.

 

Total basic and diluted earnings per share from continuing and discontinued operations for the full year 2016 were RMB14.51 (US$2.09) and RMB13.35 (US$1.93), respectively. This translates into basic and diluted earnings per ADS of RMB58.04 (US$8.36) and RMB53.40 (US$7.72), respectively.

 

Non-GAAP net income from continuing operations for the full year 2016 was RMB1.25 billion (US$179.4 million), compared with non-GAAP net income of RMB1.06 billion in 2015.

 

Non-GAAP basic and diluted earnings per share from continuing operations for the full year 2016 were RMB9.90 (US$1.43) and RMB9.07 (US$1.31), respectively, which translates into non-GAAP basic and diluted earnings per ADS of RMB39.60 (US$5.72) and RMB36.28 (US$5.24), respectively.

 

Fourth Quarter and Full Year 2016 Operational Highlights

 

Solar Module Shipments

 

Total solar module shipments in the fourth quarter of 2016 amounted to 1,733 MW.

 

Total solar module shipments in 2016 amounted to 6,656 MW, compared to 4,512 MW in 2015.

 

Solar Products Production Capacity

 

As of December 31, 2016, the Company's in-house annual silicon wafer, solar cell and solar module production capacity was 5.0 GW, 4.0 GW and 6.5 GW, respectively.

 

Recent Business Developments

 

lIn December 2016, JinkoSolar donated 14 kW to RE-volv, a solar non-profit and member of the White House National Community Solar Partnership.

 

lIn December 2016, JinkoSolar received the 2016 Chinese Excellent Corporate Citizen Award at the 12th Annual Chinese Excellent Corporate Citizen Conference held by the Corporate Citizenship Committee of the China Association of Social Workers, China Central Television and the Tencent Charity Foundation.

 

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lIn November 2016, JinkoSolar announced that its Shangrao production facility received IEC TS 62941 photovoltaic industry technical specification certification.

 

lIn November 2016, JinkoSolar completed delivery on 140 MWdc of PV modules for the North Star project located in Chisago County, Minnesota, U.S.

 

lIn November 2016, JinkoSolar announced that its entire portfolio of PV modules passed the 96-hour Potential Induced Degradation (PID) resistance test under the conditions of 85℃ degrees and 85% relative humidity at +/-1,000V as required by IEC62804 standards with a degradation of less than 5%.

 

lIn November 2016, JinkoSolar announced the completion of the sale of Jinko Power downstream business in China.

 

lIn October 2016, JinkoSolar was appointed as one of the six co-chairs for the Business 20 (B20) Energy, Climate & Resource Efficiency Taskforce, under the leadership of the German G20 Presidency.

 

Operations and Business Outlook

 

First Quarter and Full Year 2017 Guidance

 

For the first quarter of 2017, the Company estimates total solar module shipments to be in the range of 1.9 GW to 2.0 GW.

 

For the full year 2017, the Company estimates total solar module shipments to be in the range of 8.5 GW and 9.0 GW.

 

Conference Call Information

 

JinkoSolar's management will host an earnings conference call on Monday, February 27, 2017 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

 

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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 6, 2017. The dial-in details for the replay are as follows:

 

International: +61-2-9641-7900
U.S. Toll Free: +1-866-846-0868
Passcode: 6221419

 

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 5.0 GW for silicon ingots and wafers, 4.0 GW for solar cells, and 6.5 GW for solar modules, as of December 31, 2016.

 

JinkoSolar has over 15,000 employees across its 6 productions facilities in Jiangxi, Zhejiang and Xinjiang Provinces, China, Malaysia, Portugal and South Africa, 15 oversea subsidiaries in Japan (2), Singapore, India, Turkey, Germany, Italy, Switzerland, 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:

 

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·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.

 

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 30, 2016, which was RMB6.9430 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.

 

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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:
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

 

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JINKOSOLAR HOLDING CO., LTD.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except ADS and Share data)

 

   2015   2016 
Continuing operations  RMB   RMB   USD 
             
Revenues from third parties   15,454,374    21,262,113    3,062,381 
                
Revenues from related parties   -    138,525    19,952 
                
Total revenues   15,454,374    21,400,638    3,082,333 
                
Cost of revenues   (12,522,914)   (17,531,299)   (2,525,032)
                
Gross profit   2,931,460    3,869,339    557,301 
                
Operating expenses:               
Selling and marketing   (1,144,559)   (1,434,039)   (206,545)
General and administrative   (521,425)   (779,567)   (112,281)
Research and development   (143,671)   (181,106)   (26,085)
Impairment of long-lived assets   -    (125,524)   (18,079)
Total operating expenses   (1,809,655)   (2,520,236)   (362,990)
                
Income from operations   1,121,805    1,349,103    194,311 
Interest expenses, net   (311,019)   (359,296)   (51,749)
Change in fair value of derivative liability   (2,096)   24,573    3,539 
Subsidy income   101,874    168,647    24,290 
Exchange gain/(loss), net   (86,518)   208,811    30,077 
Change in fair value of forward contracts   56,562    (52,562)   (7,570)
Change in fair value of convertible senior notes and capped call options   (14,571)   (110,242)   (15,878)
Other income, net   1,036    8,768    1,263 
Investment income   -    4,902    706 
Gain on disposal of subsidiaries   -    5,018    723 
Income from continuing operations before income taxes   867,073    1,247,722    179,712 
Income tax expense   (100,534)   (257,487)   (37,086)
Income from continuing operations, net of tax   766,539    990,235    142,626 
Discontinued operations               
Gain on disposal of discontinued operations   -    1,007,884    145,165 
Income from discontinued operations before income taxes   105,090    48,146    6,934 
Income tax expense, net   (11,330)   (54,466)   (7,845)
Income from discontinued operations, net of tax   93,760    1,001,564    144,254 
Net income   860,299    1,991,799    286,880 
Less: Net loss attributable to non-controlling
 interests from continuing operations
   (63)   (433)   (62)
Less: Net income attributable to non-controlling interests from discontinued operations   4,270    6,044    871 
Less: Accretion to redemption value of redeemable non-controlling interests of discontinued operations   172,340    159,478    22,970 
                
Net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders   683,752    1,826,710    263,101 
                
Earnings/(loss) per share for ordinary shareholders, basic               
Continuing operations   6.15    7.87    1.13 
Discontinued operations   (0.66)   6.64    0.96 
Total earnings/(loss) per share for ordinary shareholders, basic   5.49    14.51    2.09 
                
Earnings/(loss) per share for ordinary shareholders, diluted               
Continuing operations   6.00    7.26    1.05 
Discontinued operations   (0.66)   6.09    0.88 
Total earnings/(loss) per share for ordinary shareholders, diluted   5.34    13.35    1.93 
                
Earnings/(loss) per ADS for ordinary shareholders, basic               
Continuing operations   24.60    31.48    4.52 
Discontinued operations   (2.64)   26.56    3.84 
Total earnings/(loss) per ADS for ordinary shareholders, basic   21.96    58.04    8.36 
                
Earnings/(loss) per ADS for ordinary shareholders, diluted               
Continuing operations   24.00    29.04    4.20 
Discontinued operations   (2.64)   24.36    3.52 
Total earnings/(loss) per ADS for ordinary shareholders, diluted   21.36    53.40    7.72 
                
Weighted average ordinary shares outstanding:               
Basic   124,618,416    125,870,272    125,870,272 
Diluted   127,802,961    137,328,725    137,328,725 
                
Weighted average ADS outstanding:               
Basic   31,154,604    31,467,568    31,467,568 
Diluted   31,950,740    34,332,181    34,332,181 
                
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
                
Net income   860,299    1,991,799    286,880 
Other comprehensive (loss)/income:               
-Unrealized loss on available-for-sale securities   (413)   -    - 
-Foreign currency translation adjustments   1,121    92,202    13,279 
Comprehensive income   861,007    2,084,001    300,159 
                
Less: comprehensive income attributable to non-controlling interests   4,207    5,611    809 
                
Comprehensive income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders   856,800    2,078,390    299,350 
                
Reconciliation of GAAP and non-GAAP Results(Excluding discontinued operations)               
                
1. Non-GAAP earnings per share and non-GAAP earnings per ADS               
                
GAAP net income attributable to ordinary shareholders from continuing operations   766,602    990,668    142,688 
                
Change in fair value of derivative liability   2,096    (24,573)   (3,539)
                
Change in fair value of convertible senior notes and capped call options   14,571    110,242    15,878 
                
4% of interest expense of convertible senior notes   67,363    37,177    5,352 
                
Exchange loss on convertible senior notes and capped call options   93,874    42,713    6,152 
                
Stock-based compensation expense   112,682    89,568    12,900 
                
Non-GAAP net income attributable to ordinary shareholders from continuing operations   1,057,188    1,245,795    179,432 
                
Non-GAAP earnings per share attributable to ordinary shareholders from continuing operations -               
Basic   8.48    9.90    1.43 
Diluted   8.27    9.07    1.31 
                
Non-GAAP earnings per ADS attributable to ordinary shareholders from continuing operations-               
Basic   33.92    39.60    5.72 
Diluted   33.08    36.28    5.24 
                
Non-GAAP weighted average ordinary shares outstanding               
Basic   124,618,416    125,870,272    125,870,272 
Diluted   127,802,961    137,328,725    137,328,725 
                
Non-GAAP weighted average ADS outstanding               
Basic   31,154,604    31,467,568    31,467,568 
Diluted   31,950,740    34,332,181    34,332,181 

 

 14 

 

 

JINKOSOLAR HOLDING CO., LTD.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except ADS and Share data)

 

   For the quarter ended 
   December 31, 2015   September 30, 2016   December 31, 2016 
Continuing operations  RMB   RMB   RMB   USD 
Revenues from third parties   5,937,852    5,331,232    5,085,938    732,527 
                     
Revenues from related parties   -    -    35,565    5,122 
                     
Total revenues   5,937,852    5,331,232    5,121,503    737,649 
                     
Cost of revenues   (4,808,049)   (4,305,166)   (4,391,518)   (632,510)
                     
Gross profit   1,129,803    1,026,066    729,985    105,139 
                     
Operating expenses:                    
Selling and marketing   (366,232)   (371,669)   (350,662)   (50,506)
General and administrative   (258,600)   (175,414)   (221,810)   (31,947)
Research and development   (39,040)   (41,864)   (57,231)   (8,243)
Impairment of long-lived assets   -    (3,819)   (22,377)   (3,223)
Total operating expenses   (663,872)   (592,766)   (652,080)   (93,919)
                     
Income from operations   465,931    433,300    77,905    11,220 
Interest expenses, net   (87,907)   (132,859)   (74,538)   (10,736)
Change in fair value of derivative liability   436    36,048    (10,364)   (1,493)
Subsidy income   54,264    12,809    81,222    11,698 
Exchange gain   80,042    2,602    17,674    2,547 
Change in fair value of forward contracts   9,774    (9,752)   19    3 
Change in fair value of convertible senior notes and capped call options   (45,301)   (15,684)   (14,712)   (2,119)
Other income/(expense), net   1,053    (291)   9,437    1,359 
Investment income   -    1,731    4,812    693 
Gain on disposal of subsidiaries   -    -    5,018    723 
Income from continuing operations before income taxes   478,292    327,904    96,473    13,895 
Income tax (expense)/benefit   (48,620)   (115,973)   49,200    7,086 
Income from continuing operations, net of tax   429,672    211,931    145,673    20,981 
Discontinued operations                    
Gain on disposal of discontinued operations   -    -    1,007,884    145,165 
(Loss)/income from discontinued operations before income taxes   (23,559)   83,083    (97,396)   (14,028)
Income tax expense, net   (10,973)   (830)   (53,020)   (7,636)
(Loss)/income from discontinued operations, net of tax   (34,532)   82,253    857,468    123,501 
                     
Net income   395,140    294,184    1,003,141    144,482 
Less: Net loss attributable to non-controlling interests from continuing operations   (62)   (221)   (123)   (19)
Less: Net income attributable to non-controlling interests from discontinued operations   916    1,561    761    110 
Less: Allocation of net income to participating preferred shares issued by discontinued operations   -    10,247    (13,895)   (2,001)
Less: Accretion to redemption value of redeemable non-controlling interests of discontinued operations   44,934    48,922    16,776    2,416 
Net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders   349,352    233,675    999,622    143,976 
                     
Earnings/(loss) per share for ordinary shareholders, basic                    
Continuing operations   3.44    1.68    1.15    0.17 
Discontinued operations   (0.64)   0.17    6.75    0.97 
Total earnings/(loss) per share for ordinary shareholders, basic   2.80    1.85    7.90    1.14 
                     
                     
Earnings/(loss) per share for ordinary shareholders, diluted                    
Continuing operations   3.36    1.35    1.14    0.16 
Discontinued operations   (0.64)   0.16    6.68    0.96 
Total earnings/(loss) per share for ordinary shareholders, diluted   2.72    1.51    7.82    1.12 
                     
Earnings/(loss) per ADS for ordinary shareholders, basic                    
Continuing operations   13.76    6.72    4.60    0.68 
Discontinued operations   (2.56)   0.68    27.00    3.88 
Total earnings/(loss) per ADS for ordinary shareholders, basic   11.20    7.40    31.60    4.56 
                     
Earnings/(loss) per ADS for ordinary shareholders, diluted                    
Continuing operations   13.44    5.40    4.56    0.64 
Discontinued operations   (2.56)   0.64    26.72    3.84 
Total earnings/(loss) per ADS for ordinary shareholders, diluted   10.88    6.04    31.28    4.48 
                     
Weighted average ordinary shares outstanding:                    
Basic   124,922,950    126,056,129    126,412,714    126,412,714 
Diluted   128,057,418    130,613,442    127,872,331    127,872,331 
                     
Weighted average ADS outstanding:                    
Basic   31,230,738    31,514,032    31,603,178    31,603,178 
Diluted   32,014,354    32,653,360    31,968,083    31,968,083 
                     
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 
                     
Net income   395,140    294,184    1,003,141    144,482 
Other comprehensive income:                    
-Unrealized loss on available-for-sale securities   (1,078)   -    -    - 
-Foreign currency translation adjustments   (7,397)   (3,409)   108,078    15,566 
Comprehensive income   386,665    290,775    1,111,219    160,048 
Less: Comprehensive income attributable to non-controlling interests   854    1,340    638    91 
Less:Allocation of net income to participating preferred shares issued by discontinued operations   -    10,247    (13,895)   (2,001)
Comprehensive income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders   385,811    279,188    1,124,476    161,958 
                     
Reconciliation of GAAP and non-Gaap Results(Excluding discontinued operations)                    
                     
1. Non-GAAP earnings per share and non-GAAP earnings per ADS                    
                     
GAAP net income attributable to ordinary shareholders from continuing operations   429,734    212,152    145,796    21,000 
                     
Change in fair value of derivative liability   (436)   (36,048)   10,364    1,493 
                     
Change in fair value of convertible senior notes and capped call options   45,301    15,684    14,712    2,119 
                     
4% of interest expense of convertible senior notes   16,946    8,007    5,180    746 
                     
Exchange loss on convertible senior notes and capped call options   30,251    5,958    18,536    2,670 
                     
Stock-based compensation expense   17,139    29,558    33,987    4,895 
                     
Non-GAAP net income attributable to ordinary shareholders from continuing operations   538,935    235,311    228,575    32,923 
                     
Non-GAAP earnings per share attributable to ordinary shareholders from continuing operations -                    
Basic   4.31    1.87    1.81    0.26 
Diluted   4.21    1.80    1.79    0.26 
                     
Non-GAAP earnings per ADS attributable to ordinary shareholders from continuing operations -                    
Basic   17.24    7.48    7.24    1.04 
Diluted   16.84    7.20    7.16    1.04 
                     
Non-GAAP weighted average ordinary shares outstanding                    
Basic   124,922,950    126,056,129    126,412,714    126,412,714 
Diluted   128,057,418    130,613,442    127,872,331    127,872,331 
                     
Non-GAAP weighted average ADS outstanding                    
Basic   31,230,738    31,514,032    31,603,178    31,603,178 
Diluted   32,014,354    32,653,360    31,968,083    31,968,083 

 

 15 

 

 

JINKOSOLAR HOLDING CO., LTD.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

 

   December 31, 2015   December 31, 2016 
   RMB   RMB   USD 
ASSETS               
Current assets:               
Cash and cash equivalents   2,392,591    2,501,417    360,279 
Restricted cash   555,724    318,785    45,915 
Restricted short-term investments   1,160,518    3,333,450    480,117 
Short-term investments   29,427    71,301    10,269 
Accounts receivable, net - related parties   60,974    1,414,084    203,670 
Accounts receivable, net - third parties   2,690,519    4,753,715    684,677 
Notes receivable, net - related parties   -    610,200    87,887 
Notes receivable, net - third parties   515,442    915,315    131,833 
Advances to suppliers, net - related parties   1,021    662    95 
Advances to suppliers, net - third parties   251,390    325,766    46,920 
Inventories, net   3,203,325    4,473,515    644,320 
Forward contract receivables   7,039    641    92 
Deferred tax assets - current   79,101    130,676    18,821 
Other receivables - related parties   -    79,125    11,396 
Capped Call options   17,490    -    - 
Prepayments and other current assets   715,449    766,645    110,420 
Held-for-sale assets   10,814,795    -    - 
Total current assets   22,494,805    19,695,297    2,836,711 
                
Non-current assets:               
Restricted cash   160,218    197,214    28,405 
Project Assets   -    55,063    7,931 
Long-term investments   7,200    7,200    1,037 
Property, plant and equipment, net   3,766,436    4,738,681    682,512 
Land use rights, net   349,914    450,941    64,949 
Intangible assets, net   20,472    20,297    2,923 
Deferred tax assets - non current   117,803    134,791    19,414 
Other assets - related parties   -    173,376    24,971 
Other assets - third parties   227,701    617,780    88,979 
Total non-current assets   4,649,744    6,395,343    921,121 
                
Total assets   27,144,549    26,090,640    3,757,832 
                
LIABILITIES               
Current liabilities:               
Accounts payable - related parties   1,479    -    - 
Accounts payable - third parties   3,783,305    4,290,071    617,899 
Notes payable - third parties   1,924,496    5,006,366    721,067 
Accrued payroll and welfare expenses   454,211    582,276    83,865 
Advances from related parties   -    60,541    8,720 
Advances from third parties   1,299,491    1,376,919    198,318 
Income tax payable   106,002    168,112    24,213 
Other payables and accruals   898,173    1,019,419    146,824 
Other payables due to related parties   4,993    76,034    10,951 
Forward contract payables   4,296    -    - 
Convertible senior notes - current   650,917    423,740    61,031 
Deferred tax liabilities - current   9,266    17,074    2,459 
Derivative liability - current   -    10,364    1,493 
Bonds payable and accrued interests   866,726    -    - 
Short-term borrowings from third parties, including current portion of long-term bank  borrowings   2,589,864    5,279,029    760,338 
Guarantee liabilities to related parties   -    52,711    7,592 
Held-for-sale liabilities   6,029,223    -    - 
Total current liabilities   18,622,442    18,362,656    2,644,770 
                
Non-current liabilities:               
Long-term borrowings   1,308,680    488,520    70,362 
Long-term payables   -    44,015    6,340 
Accrued warranty costs - non current   329,237    511,209    73,629 
Convertible senior notes   856,064    -    - 
Deferred tax liability - non current   25    50,651    7,295 
Derivative liability - non current   68,378    -    - 
Guarantee liabilities to related parties - non current   -    173,376    24,971 
Total non-current liabilities   2,562,384    1,267,771    182,597 
                
Total liabilities   21,184,826    19,630,427    2,827,367 
                
Redeemable non-controlling interests   1,607,926    -    - 
                
SHAREHOLDERS' EQUITY               
Ordinary shares (US$0.00002 par value, 500,000,000 shares authorized, 125,473,930 and 126,733,266 shares issued and outstanding as of December 31, 2015 and December 31, 2016, respectively)   18    18    3 
Additional paid-in capital   2,924,336    3,145,262    453,012 
Statutory reserves   351,763    466,253    67,154 
Accumulated other comprehensive income   12,582    104,784    15,092 
Treasury stock, at cost; 1,723,200 shares of ordinary shares as of December 31, 2015 and December 31, 2016, respectively   (13,876)   (13,876)   (1,999)
Accumulated retained earnings   1,047,045    2,758,268    397,273 
                
Total JinkoSolar Holding Co., Ltd. shareholders' equity   4,321,868    6,460,709    930,535 
                
Non-controlling interests   29,929    (496)   (70)
                
Total liabilities and shareholders' equity   27,144,549    26,090,640    3,757,832 

 

 16