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 January 2014
 
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	 	Selected Consolidated Financial Data and Management’s Discussion and Analysis of Financial Condition and Results of Operations of the Registrant for the Nine Months Ended September 30, 2012 and 2013	
 	 	 	
99.2	 	Unaudited Interim Condensed Consolidated Financial Statements for the Nine Months Ended September 30, 2012 and 2013	

 	
 
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/ Longgen Zhang	
 	Name:	Longgen Zhang	
 	Title:	Chief Financial Officer	
 
Date: January 14, 2014

 
Exhibit 99.1
 
Unless otherwise indicated or unless the context otherwise requires, the “Company” or “JinkoSolar” refers to JinkoSolar Holding Co., Ltd. and its current and former subsidiaries for the relevant periods.
 
The Company’s unaudited condensed consolidated financial statements were prepared on a basis substantially consistent with the Company’s audited consolidated financial statements for the year ended December 31, 2012. These unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“US GAAP”) for interim financial information. The unaudited financial information includes all adjustments, consisting of normal and recurring adjustments, that the Company considers necessary for a fair statement of the Company’s financial position and operating results for the periods presented.
 
The Company’s unaudited results for the nine months ended September 30, 2013 may not be indicative of its results for the full year ended December 31, 2013.
 
This report contains translations of certain Renminbi amounts into U.S. dollars at the rate of RMB6.1200 to US$1.00, the noon buying rate in effect on September 30, 2013, as set forth in the H.10 Statistical Release of the Federal Reserve Bank Board. The Company makes no representation that the Renminbi or dollar amounts referred to in this report could have been or could be converted into dollars or Renminbi, as the case may be, at any particular rate or at all.
 
SELECTED CONSOLIDATED FINANCIAL DATA
 
The following selected consolidated statement of operations data for the nine months ended September 30, 2012 and 2013 and the selected consolidated balance sheet data as of September 30, 2013 have been derived from the Company’s unaudited interim condensed consolidated financial statements included elsewhere in this current report on Form 6-K. The selected consolidated financial data should be read in conjunction with the unaudited condensed consolidated financial statements of the Company, the related notes included elsewhere in this current report on Form 6-K and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” below.
 
 	 	For the Nine Months Ended September 30,	 	
 	 	2012	 	 	2013	 	 	2013	 	
 	 	(RMB)	 	 	(RMB)	 	 	(US$)	 	
 	 	(in thousands, except share and per share data)	 	
Consolidated Statements of Operations Data:	 	 	 	 	 	 	 	 	 	 	 	 	
Revenues	 	 	3,627,602.0	 	 	 	4,890,772.7	 	 	 	799,145.9	 	
Cost of revenues	 	 	(3,439,360.0	)	 	 	(3,994,260.3	)	 	 	(652,656.9	)	
Gross profit	 	 	188,242.0	 	 	 	896,512.4	 	 	 	146,489.0	 	
Total operating expenses	 	 	(688,019.9	)	 	 	(513,272.2	)	 	 	(83,868.0	)	
(Loss)/income from operations	 	 	(499,777.9	)	 	 	383,240.2	 	 	 	62,621.0	 	
Interest expenses, net	 	 	(165,399.3	)	 	 	(170,013.2	)	 	 	(27,779.9	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Subsidy income	 	 	284.0	 	 	 	4,059.7	 	 	 	663.3	 	
Exchange loss	 	 	(46,176.4	)	 	 	(31,968.2	)	 	 	(5,223.6	)	
Other income, net	 	 	8,333.2	 	 	 	7,366.3	 	 	 	1,203.6	 	
Change in fair value of forward contracts	 	 	(59,043.3	)	 	 	32,643.3	 	 	 	5,333.9	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Change in fair value of convertible senior notes and capped call options	 	 	(28,489.6	)	 	 	(160,862.5	)	 	 	(26,284.7	)	
(Loss)/income before income taxes	 	 	(790,269.3	)	 	 	64,465.6	 	 	 	10,533.6	 	
Income tax benefit/(expense)	 	 	9,000.8	 	 	 	(18,185.2	)	 	 	(2,971.4	)	
Equity in losses of affiliated companies	 	 	-	 	 	 	(21,731.1	)	 	 	(3,550.8	)	
Net (loss)/income	 	 	(781,268.5	)	 	 	24,549.3	 	 	 	4,011.4	 	
Less: Net income attributable to the non-controlling interests	 	 	16.9	 	 	 	823.5	 	 	 	134.6	 	
Net (loss)/income attributable to JinkoSolar Holding Co., Ltd.	 	 	(781,285.4	)	 	 	23,725.8	 	 	 	3,876.8	 	
Net (loss)/income attributable to JinkoSolar Holding Co., Ltd’s ordinary shareholders per share	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	(8.80	)	 	 	0.27	 	 	 	0.04	 	
Diluted	 	 	(8.80	)	 	 	0.26	 	 	 	0.04	 	
Net (loss)/income attributable to JinkoSolar Holding Co., Ltd’s ordinary shareholders per ADS (1)	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	(35.20	)	 	 	1.08	 	 	 	0.16	 	
Diluted	 	 	(35.20	)	 	 	1.04	 	 	 	0.16	 	
Weighted average ordinary shares outstanding	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	88,748,445	 	 	 	89,317,742	 	 	 	89,317,742	 	
Diluted	 	 	88,748,445	 	 	 	91,097,669	 	 	 	91,097,669	 	
(1) Each ADS represents four ordinary shares.
 
1	

 	
 
 	 	As of December 31,	 	 	As of September 30,	 	
 	 	2012	 	 	2013	 	 	2013	 	
 	 	(RMB)	 	 	(RMB)	 	 	(US$)	 	
 	 	(in thousands)	 	
Consolidated Balance Sheet Data:	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents	 	 	279,130.0	 	 	 	950,002.5	 	 	 	155,229.2	 	
Restricted cash	 	 	140,760.8	 	 	 	388,424.5	 	 	 	63,468.1	 	
Short-term investments	 	 	722,461.3	 	 	 	846,302.7	 	 	 	138,284.8	 	
Account receivable, net - related parties	 	 	105,531.4	 	 	 	284,336.2	 	 	 	46,460.2	 	
Accounts receivable, net - third parties	 	 	1,712,685.2	 	 	 	1,409,422.7	 	 	 	230,297.8	 	
Advances to suppliers, net - third parties	 	 	63,553.0	 	 	 	92,774.2	 	 	 	15,159.2	 	
Inventories	 	 	527,962.4	 	 	 	629,624.0	 	 	 	102,879.7	 	
Total current assets	 	 	3,985,609.2	 	 	 	5,474,862.3	 	 	 	894,585.3	 	
Project assets	 	 	536,391.1	 	 	 	962,521.2	 	 	 	157,274.7	 	
Property, plant and equipment, net	 	 	3,329,872.7	 	 	 	3,331,930.0	 	 	 	544,433.0	 	
Land use rights, net	 	 	365,749.2	 	 	 	360,694.6	 	 	 	58,937.0	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	 	 	8,372,320.3	 	 	 	10,404,717.0	 	 	 	1,700,117.2	 	
Accounts payable - a related party	 	 	30,045.2	 	 	 	28,611.3	 	 	 	4,675.0	 	
Accounts payable - third parties	 	 	1,347,327.0	 	 	 	1,444,785.5	 	 	 	236,076.1	 	
Notes payable	 	 	1,149,136.5	 	 	 	1,555,973.0	 	 	 	254,244.0	 	
Accrued payroll and welfare expenses	 	 	206,425.1	 	 	 	228,541.3	 	 	 	37,343.3	 	
Advance from third party customers	 	 	121,031.2	 	 	 	313,814.9	 	 	 	51,276.9	 	
Bonds payable and accrued interests	 	 	313,689.8	 	 	 	48,745.8	 	 	 	7,965.0	 	
Convertible senior notes	 	 	-	 	 	 	673,228.1	 	 	 	110,004.6	 	
Short-term borrowings from third parties (including current portion of long-term borrowings)	 	 	2,245,630.8	 	 	 	2,020,911.2	 	 	 	330,214.2	 	
Total current liabilities	 	 	6,238,443.5	 	 	 	7,242,408.3	 	 	 	1,183,400.0	 	
Long-term borrowings	 	 	167,000.0	 	 	 	383,000.0	 	 	 	62,581.7	 	
Bond payables	 	 	-	 	 	 	800,000.0	 	 	 	130,719.0	 	
Convertible senior notes	 	 	483,581.7	 	 	 	-	 	 	 	-	 	
Total liabilities	 	 	6,998,508.9	 	 	 	8,567,297.8	 	 	 	1,399,885.3	 	
Total JinkoSolar Holding Co., Ltd. shareholders’ equity	 	 	1,365,122.3	 	 	 	1,827,106.9	 	 	 	298,546.9	 	
Non-controlling interests	 	 	8,689.1	 	 	 	10,312.2	 	 	 	1,685.0	 	
Total liabilities and shareholders’ equity	 	 	8,372,320.3	 	 	 	10,404,717.0	 	 	 	1,700,117.2	 	
 
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 
Segment information
 
The Company began developing solar projects in 2011. During the third quarter of 2013, it changed its operational focus to include both product manufacturing and solar project development. As a result of these changes, the Company’s chief operating decision maker changed the information regularly reviewed for purposes of allocating resources and assessing performance. Therefore, in accordance with ASC 280, Segment Reporting, in the third quarter of 2013, the Company began reporting its financial performance based on its two new segments: the manufacturing segment and the solar projects segment.
 
Revenue from the manufacturing segment consists primarily of sales of solar power products. Costs of revenue for the manufacturing segment consist primarily of costs associated with manufacturing solar products. Revenue from the solar projects segment consists primarily of feed-in-tariffs, including electricity sold on the spot market plus government subsidies. Costs of revenue for the solar projects segment consist primarily of depreciation of project assets and costs associated with operating a solar project.
 
The following tables set forth the results of operations of its segments and the reconciliation with its consolidated results of operations for the nine months ended September 30, 2012 and 2013 and as of December 31, 2012 and September 30, 2013.
 
2	

 	
 
 	 	For the Nine Months Ended September 30,	 	
 	 	2012	 	 	2013	 	
 	 	Manufacturing	 	 	Solar
projects	 	 	Elimination(1)	 	 	Total	 	 	Manufacturing	 	 	Solar
projects	 	 	Elimination(1)	 	 	Total	 	
 	 	(RMB in thousands)	 	
Revenues	 	 	3,637,771.0	 	 	 	-	 	 	 	(10,169.0	)	 	 	3,627,602.0	 	 	 	5,083,894.4	 	 	 	46,899.0	 	 	 	(240,020.7	)	 	 	4,890,772.7	 	
Gross profit	 	 	189,590.6	 	 	 	-	 	 	 	(1,348.6	)	 	 	188,242.0	 	 	 	933,042.8	 	 	 	27,050.4	 	 	 	(63,580.8	)	 	 	896,512.4	 	
Interest expense, net	 	 	(165,399.3	)	 	 	-	 	 	 	-	 	 	 	(165,399.3	)	 	 	(162,547.8	)	 	 	(7,465.4	)	 	 	-	 	 	 	(170,013.2	)	
Loss/(income) before income taxes	 	 	(788,920.7	)	 	 	-	 	 	 	(1,348.6	)	 	 	(790,269.3	)	 	 	138,648.7	 	 	 	13,252.8	 	 	 	(87,435.9	)	 	 	64,465.6	 	
 
 	 	As of	 	
 	 	December 31, 2012	 	 	September 30, 2013	 	
 	 	Manufacturing	 	 	Solar
projects	 	 	Elimination(2)	 	 	Total	 	 	Manufacturing	 	 	Solar
projects	 	 	Elimination(2)	 	 	Total	 	
 	 	(RMB in thousands)	 	
Total assets	 	 	7,719,329.1	 	 	 	798,992.9	 	 	 	(146,001.7	)	 	 	8,372,320.3	 	 	 	9,094,808.1	 	 	 	1,952,132.5	 	 	 	(642,223.6	)	 	 	10,404,717.0	 	
 	(1)	Elimination refers to the elimination of revenue and profit from the sale of solar modules from the manufacturing segment to the solar project segment.	
 	(2)	Elimination refers to the elimination of unsettled receivables of the manufacturing segment and unsettled payables of the solar projects segment resulting from the above sales of solar modules.	
 
In conjunction with the Company’s planned concurrent offering of American Depositary Shares (the “ADS Offering”) and convertible senior notes (the “Notes Offering”), it assessed the impact of the aforementioned segment change on its consolidated financial statements as of December 31, 2011 and 2012 and each of and for the three years ended December 31, 2012, which were previously included in its annual report on Form 20-F filed with the SEC on April 30, 2013, as amended on May 23, 2013 (the “2012 Annual Report”), which will be incorporated by reference into the registration statement on Form F-3, Registration No. 333-190273, as amended, originally filed with the Securities and Exchange Commission on July 31, 2013, (the “Form F-3”) in connection with the ADS offering and the offering memorandum in connection with the Notes Offering (the “Offering Memorandum”). The Company does not consider such segment change material to its financial statements taken as a whole for the periods presented, and therefore it did not retrospectively recast the annual financial statements included in its 2012 Annual Report in conjunction with the Form F-3 or the Offering Memorandum.
 
The following tables set forth the Company’s updated segment information as of and for the years ended December 31, 2011 and 2012.
 
 	 	For the Year Ended December 31,	 	
 	 	2011	 	 	2012	 	
 	 	(RMB in thousands)	 	
 	 	Manufacturing	 	 	Solar
projects	 	 	Elimination(1)	 	 	Total	 	 	Manufacturing	 	 	Solar
projects	 	 	Elimination(1)	 	 	Total	 	
Revenues	 	 	7,544,252.0	 	 	 	-	 	 	 	(159,300.6	)	 	 	7,384,951.4	 	 	 	4,909,005.4	 	 	 	1,607.1	 	 	 	(115,844.1	)	 	 	4,794,768.4	 	
Gross profit	 	 	1,162,940.4	 	 	 	-	 	 	 	(13,089.2	)	 	 	1,149,851.2	 	 	 	237,322.3	 	 	 	(3,986.8	)	 	 	(1,098.4	)	 	 	232,237.1	 	
Interest expense, net	 	 	(182,502.2	)	 	 	-	 	 	 	-	 	 	 	(182,502.2	)	 	 	(221,719.8	)	 	 	-	 	 	 	-	 	 	 	(221,719.8	)	
Loss/(income) before income taxes	 	 	367,637.7	 	 	 	(149.9	)	 	 	(13,089.2	)	 	 	354,398.6	 	 	 	(1,526,557.9	)	 	 	(25,061.0	)	 	 	(1,098.5	)	 	 	(1,552,717.4	)	
 
 	 	As of December 31,	 	
 	 	2011	 	 	2012	 	
 	 	Manufacturing	 	 	Solar
projects	 	 	Elimination(2)	 	 	Total	 	 	Manufacturing	 	 	Solar
projects	 	 	Elimination(2)	 	 	Total	 	
 	 	(RMB in thousands)	 	
Total assets	 	 	8,921,130.3	 	 	 	288,358.3	 	 	 	(33,089.3	)	 	 	9,176,399.3	 	 	 	7,719,329.1	 	 	 	798,992.9	 	 	 	(146,001.7	)	 	 	8,372,320.3	 	
 	(1)	Elimination refers to the elimination of revenue and profit from the sale of solar modules from the manufacturing segment to the solar project segment.	
 	(2)	Elimination refers to the elimination of unsettled receivables of the manufacturing segment and unsettled payables of the solar projects segment resulting from the above sales of solar modules.	
 
The Company did not have any solar projects business prior to 2011. Therefore, the financial information for the period prior to and including the year ended December 31, 2010, as reported in the 2012 Annual Report, is solely in connection with its manufacturing business.
 
3	

 	
 
Results of Operations
 
The following table sets forth a summary, for the periods indicated, of the unaudited consolidated results of operations of the Company.
 
 	 	For the Nine Months Ended September 30,	 	
 	 	2012	 	 	2012	 	 	2013	 	 	2013	 	 	2013	 	
 	 	(RMB)	 	 	(% of
revenue)	 	 	(RMB)	 	 	(US$)	 	 	(% of
revenue)	 	
 	 	(in thousands, except percentage)	 	
Consolidated Statements of Operations Data:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenue	 	 	3,627,602.0	 	 	 	100.0	 	 	 	4,890,772.7	 	 	 	799,145.9	 	 	 	100.0	 	
Sales of solar modules	 	 	3,006,372.1	 	 	 	82.9	 	 	 	4,611,999.4	 	 	 	753,594.7	 	 	 	94.3	 	
Sales of silicon wafers	 	 	296,658.2	 	 	 	8.2	 	 	 	62,559.0	 	 	 	10,222.1	 	 	 	1.3	 	
Sales of solar cells	 	 	98,044.7	 	 	 	2.7	 	 	 	102,294.3	 	 	 	16,714.8	 	 	 	2.1	 	
Sales of silicon ingots	 	 	1,885.6	 	 	 	0.1	 	 	 	1,175.0	 	 	 	192.0	 	 	 	0.0	 	
Sales of recovered silicon materials	 	 	270.4	 	 	 	0.0	 	 	 	4,550.6	 	 	 	743.6	 	 	 	0.1	 	
Processing service fees	 	 	142,824.1	 	 	 	3.9	 	 	 	45,803.7	 	 	 	7,484.3	 	 	 	0.9	 	
Solar system integration projects	 	 	79,796.4	 	 	 	2.2	 	 	 	201.1	 	 	 	32.9	 	 	 	0.0	 	
Revenue from generated electricity	 	 	-	 	 	 	-	 	 	 	46,899.0	 	 	 	7,663.2	 	 	 	1.0	 	
Others	 	 	1,750.5	 	 	 	0.0	 	 	 	15,290.6	 	 	 	2,498.3	 	 	 	0.3	 	
Cost of revenues	 	 	(3,439,360.0	)	 	 	94.8	 	 	 	(3,994,260.3	)	 	 	(652,656.9	)	 	 	81.7	 	
Gross profit	 	 	188,242.0	 	 	 	5.2	 	 	 	896,512.4	 	 	 	146,489.0	 	 	 	18.3	 	
Total operating expenses	 	 	(688,019.9	)	 	 	19.0	 	 	 	(513,272.2	)	 	 	(83,868.0	)	 	 	10.5	 	
Income/(loss) from operations	 	 	(499,777.9	)	 	 	13.8	 	 	 	383,240.2	 	 	 	62,621.0	 	 	 	7.8	 	
Interest expenses, net	 	 	(165,399.3	)	 	 	4.6	 	 	 	(170,013.2	)	 	 	(27,779.9	)	 	 	3.5	 	
Subsidy income	 	 	284.0	 	 	 	0.0	 	 	 	4,059.7	 	 	 	663.3	 	 	 	0.1	 	
Exchange loss	 	 	(46,176.4	)	 	 	1.3	 	 	 	(31,968.2	)	 	 	(5,223.6	)	 	 	0.7	 	
Other(expense)/ income, net	 	 	8,333.2	 	 	 	0.2	 	 	 	7,366.3	 	 	 	1,203.6	 	 	 	0.2	 	
Change in fair value of forward contracts	 	 	(59,043.3	)	 	 	1.6	 	 	 	32,643.3	 	 	 	5,333.9	 	 	 	0.7	 	
Change in fair value of convertible senior notes and capped call options	 	 	(28,489.6	)	 	 	0.8	 	 	 	(160,862.5	)	 	 	(26,284.7	)	 	 	3.3	 	
Income/(loss) before income taxes	 	 	(790,269.3	)	 	 	21.8	 	 	 	64,465.6	 	 	 	10,533.6	 	 	 	1.3	 	
Income tax (expense)/benefit	 	 	9,000.8	 	 	 	0.2	 	 	 	(18,185.2	)	 	 	(2,971.4	)	 	 	0.4	 	
Equity in gain/(loss) of affiliated companies	 	 	-	 	 	 	-	 	 	 	(21,731.1	)	 	 	(3,550.8	)	 	 	0.4	 	
Net income/(loss)	 	 	(781,268.5	)	 	 	21.5	 	 	 	24,549.3	 	 	 	4,011.4	 	 	 	0.5	 	
Less: Net income attributable to the non-controlling interests	 	 	16.9	 	 	 	0.0	 	 	 	823.5	 	 	 	134.6	 	 	 	0.0	 	
Net income/(loss) attributable to JinkoSolar Holding Co., Ltd.	 	 	(781,285.4	)	 	 	21.5	 	 	 	23,725.8	 	 	 	3,876.8	 	 	 	0.5	 	
 
Unaudited Quarterly Results of Operations
 
The following table sets forth selected unaudited quarterly results of operations for each quarter during the period from March 31, 2012 to September 30, 2013. The Company derived this information from its unaudited consolidated financial statements, which it prepared on the same basis as its audited consolidated financial statements contained in the 2012 Annual Report. In its opinion, these unaudited statements include all adjustments, consisting only of normal recurring adjustments that the Company considers necessary for a fair statement of that information when read in conjunction with the consolidated financial statements and related notes included elsewhere in the 2012 Annual Report. The operating results for any quarter should not be considered indicative of results for any future period.
 
 	 	For the Three Months Ended	 	
 	 	March 31,
2012	 	 	June 30,
2012	 	 	September
30, 2012	 	 	December
31, 2012	 	 	March 31,
2013	 	 	June 30,
2013	 	 	September
30, 2013	 	
 	 	(RMB in thousands, except as otherwise indicated)	 	
Revenue	 	 	1,060,081.5	 	 	 	1,237,991.4	 	 	 	1,329,529.1	 	 	 	1,167,166.5	 	 	 	1,163,403.7	 	 	 	1,764,884.9	 	 	 	1,962,484.1	 	
Cost of revenues	 	 	(1,053,049.4	)	 	 	(1,134,400.8	)	 	 	(1,251,909.8	)	 	 	(1,123,171.4	)	 	 	(1,016,091.6	)	 	 	(1,453,298.1	)	 	 	(1,524,870.6	)	
Gross profit	 	 	7,032.1	 	 	 	103,590.6	 	 	 	77,619.3	 	 	 	43,995.1	 	 	 	147,312.1	 	 	 	311,586.8	 	 	 	437,613.5	 	
(Loss)/income before income taxes	 	 	(356,253.7	)	 	 	(320,777.7	)	 	 	(113,237.9	)	 	 	(762,448.1	)	 	 	(129,103.5	)	 	 	67,335.9	 	 	 	126,233.2	 	
Income tax benefit/(expense)	 	 	-	 	 	 	10,290.2	 	 	 	(1,289.4	)	 	 	(83.1	)	 	 	(13.2	)	 	 	215.6	 	 	 	(18,387.6	)	
Net (loss)/income	 	 	(356,253.7	)	 	 	(310,487.5	)	 	 	(114,527.3	)	 	 	(762,546.4	)	 	 	(129,161.7	)	 	 	48,270.8	 	 	 	105,440.2	 	
Net (loss)/income attributable to JinkoSolar Holding Co., Ltd.	 	 	(356,270.5	)	 	 	(310,485.8	)	 	 	(114,529.1	)	 	 	(761,135.4	)	 	 	(128,744.1	)	 	 	48,962.5	 	 	 	103,507.4	 	
Module shipments (MW)	 	 	157.1	 	 	 	223.0	 	 	 	280.0	 	 	 	252.3	 	 	 	282.4	 	 	 	460.0	 	 	 	489.3	 	
Module average selling price (US$)	 	 	0.83	 	 	 	0.74	 	 	 	0.64	 	 	 	0.56	 	 	 	0.59	 	 	 	0.60	 	 	 	0.63	 	
Module silicon costs (US$ per watt)	 	 	0.16	 	 	 	0.14	 	 	 	0.12	 	 	 	0.09	 	 	 	0.09	 	 	 	0.09	 	 	 	0.09	 	
Module non-silicon costs (US$ per watt)	 	 	0.58	 	 	 	0.52	 	 	 	0.47	 	 	 	0.45	 	 	 	0.42	 	 	 	0.41	 	 	 	0.41	 	
PV multicrystalline cell average conversion efficiency	 	 	16.9	%	 	 	17.2	%	 	 	17.5	%	 	 	17.6	%	 	 	17.6	%	 	 	17.8	%	 	 	17.9	%	
 
4	

 	
 
The following table describes depreciation and amortization expenses included in our cost of sales and operating expenses for the periods indicated.
 
 	 	For the Three Months Ended	 	
 	 	March 31,
2012	 	 	June 30,
2012	 	 	September
30, 2012	 	 	December
31, 2012	 	 	March 31,
2013	 	 	June 30,
2013	 	 	September
30, 2013	 	
 	 	(RMB in thousands, except as otherwise indicated)	 	
Depreciation of plant, property and equipment	 	 	78,633.8	 	 	 	80,062.2	 	 	 	82,249.8	 	 	 	82,206.8	 	 	 	83,639.0	 	 	 	77,032.7	 	 	 	86,385.4	 	
Depreciation of project assets	 	 	1,147.2	 	 	 	1,235.7	 	 	 	1,397.5	 	 	 	1,361.1	 	 	 	5,016.7	 	 	 	6,441.3	 	 	 	6,468.7	 	
Amortization of land use rights and intangible assets	 	 	1,857.1	 	 	 	1,686.4	 	 	 	1,895.4	 	 	 	1,871.5	 	 	 	1,722.8	 	 	 	2,048.1	 	 	 	1,903.3	 	
 
The Company shipped solar modules in the range of 500 MW to 530 MW in the fourth quarter of 2013 and in the range 1.7 GW to 1.8 GW for the full year ended December 31, 2013. The Company operated 213 MW of projects as an independent power producer as of December 31, 2013. Its PV multicrystalline cell average conversion efficiency reached 17.9% in the fourth quarter of 2013.
 
Nine Months Ended September 30, 2013 Compared to Nine Months Ended September 30, 2012
 
Total revenue of RMB3,637.8 million for the nine months ended September 30, 2012 was derived entirely from the manufacturing segment. Total revenue of RMB5,130.8 million (US$838.4 million) for the same period in 2013 consisted of RMB5,083.9 million (US$830.7 million) from the manufacturing segment and RMB46.9 million (US$7.7 million) from the solar projects segment.
 
The increase in total revenue from the manufacturing segment was primarily due to an increase in shipments of solar modules from 660 MW for the nine months ended September 30, 2012 to 1,232 MW for the nine months ended September 30, 2013, primarily due to a significant increase in shipments to China and other Asia-Pacific countries, which was mainly driven by the increased sales and marketing activities in such regions, partially offset by a decrease in shipments to Europe, which was mainly driven by reduced demand as government support for solar projects in Europe decreased in response to the European debt crisis. Revenue from the increase in shipments was partially offset by a decrease in average selling prices of solar modules, primarily due to an increase in the relative oversupply of solar modules and decrease in the price of polysilicon, the principal raw material for PV modules, from the nine months ended September 30, 2012 to the same period in 2013. Cost of revenues for the manufacturing segment increased 20.4% from RMB3,448.2 million for the nine months ended September 30, 2012 to RMB4,150.9 million (US$678.2 million) for the same period in 2013, primarily as a result of the increase in shipments of solar modules, partially offset by a decrease in the average unit cost for the Company’s solar modules. Gross profit for the manufacturing segment for the nine months ended September 30, 2013 was RMB933.0 million (US$152.5 million), compared to RMB189.6 million for the same period in 2012.
 
In the nine months ended September 30, 2013, total revenue from the solar project segment was RMB46.9 million (US$7.7 million), all of which was from feed-in-tariffs. In the third quarter of 2013, the Company began recording as revenue government subsidies for electricity revenues from solar projects since July 1, 2013. Of the revenue from generated electricity in the third quarter of 2013, RMB16.7 million (US$2.7 million) was related to the government subsidy for electricity revenues for the six months ended June 30, 2013, RMB2.1 million (US$0.3 million) was related to the government subsidy for electricity revenues for the full year ended December 31, 2012 and RMB14.7 million (US$2.4 million) was related to the government subsidy for electricity revenues in the third quarter of 2013. Excluding the government subsidy for electricity revenues before July 1, 2013 which were recognized during the third quarter of 2013, electricity revenues and gross profit for electricity from solar projects for the nine months ended September 30, 2013 were RMB28.1 million (US$4.6 million) and RMB8.2 million (US$1.3 million), respectively. Cost of revenues for the solar projects segment for the nine months ended September 30, 2013 were RMB19.8 million (US$3.2 million) primarily as a result of increased depreciation of property, plant and equipment. Gross profit for the solar projects segment for the nine months ended September 30, 2013 was RMB27.1 million (US$4.4 million). The Company did not generate revenue from the solar project segment in the nine months ended September 30, 2012.
 
Gross margin increased from 5.2% for the nine months ended September 30, 2012 to 18.3% for the same period in 2013, primarily due to the Company’s improvements in operating efficiency and continued cost reductions for polysilicon and auxiliary materials, partially offset by lower average selling prices of solar modules.
 
5	

 	
 
Total operating expenses decreased from RMB688.0 million for the nine months ended September 30, 2012 to RMB513.3 million (US$83.9 million) for the same period in 2013, primarily due to (i) a provision of RMB129.8 million in the first quarter of 2012 on inventory purchase prepayments under long-term polysilicon supply contracts as a result of adverse developments in a supplier’s operations and (ii) the reversal of provision for bad debts of RMB119.0 million (US$19.4 million) for the nine months ended September 30, 2013 as a result of the subsequent cash collection of long-aged accounts receivable, partially offset by an increase in shipping and warranty costs resulting from the increase in solar module shipments.
 
Liquidity and Capital Resources
 
The Company has financed its operations primarily through equity contributions from its shareholders, the net proceeds of its securities offerings, cash flow generated from operations, as well as issuance of bonds, short-term and long-term debt financing.
 
As of September 30, 2013, the Company had RMB950.0 million (US$155.2 million) in cash and cash equivalents and RMB388.4 million (US$63.5 million) in restricted cash. The Company’s cash and cash equivalents represent cash on hand and demand deposits with original maturities of three months or less that are placed with banks and other financial institutions. The Company’s restricted cash represents deposits legally held by banks which are not available for general use. These deposits are held as collateral for issuance of letters of credit and bank acceptable notes to vendors for purchase of machinery and equipment and raw materials.
 
As of September 30, 2013, the Company had entered into purchase agreements for purchasing additional manufacturing equipment. The Company’s purchase capital commitments under these contracts amounted to approximately RMB392.8 million (US$64.2 million) as of September 30, 2013, of which RMB373.9 million (US$61.1 million) will be due within one year after September 30, 2013. The Company plans to use the remaining available cash for research and development and for working capital and other day-to-day operating purposes.
 
As of September 30, 2013, the Company had total bank credit facilities available of RMB4.80 billion (US$784.8 million) with various banks, of which RMB2.86 billion (US$468.0 million) were drawn down and RMB1.94billion (US$316.8 million) were available.
 
As of September 30, 2013, the Company had short-term borrowings (including the portion of long-term borrowings due within one year) of RMB2,020.9 million (US$330.2 million). As of September 30, 2013, the Company had short-term borrowings outstanding of RMB1,839.2 million (US$300.5 million) and RMB181.7 million (US$29.7 million), which were denominated in RMB and U.S. dollars, respectively, and bearing a weighted average interest rates of 6.3% and 2.5% per annum, respectively.
 
As of September 30, 2013, the Company pledged equipment of a total net book value of RMB2,084.0 million (US$340.5 million) and inventories of a total net book value of RMB212.7 million (US$34.8 million) and land use rights of a total net book value of RMB204.3 million (US$33.4 million) and property and plants of a total net book value of RMB375.1 million (US$61.3 million) to secure repayment of the Company’s short-term borrowings of RMB1,432.2 million (US$234.0 million). As of September 30, 2013, the Company’s outstanding short-term borrowings guaranteed by its founders were RMB542.0 million (US$88.6 million). Although the Company has increased its level of short-term bank borrowings to meet its working capital, capital expenditures and other needs, it has not experienced any difficulties in repaying its borrowings.
 
The Company had long-term borrowings (excluding the portion of long-term borrowings due within one year) of RMB383.0 million (US$62.6 million) as of September 30, 2013. Long-term borrowings outstanding as of September 30, 2013 bore interest at an average annual rate of 7.2%. In connection with most of the Company’s long-term borrowings, it has granted security interests over significant amounts of the Company’s assets. As of September 30, 2013, the Company pledged land use rights with net book value of RMB78.7 million (US$12.9 million)and project assets of a total net book value of RMB325.2 to secure repayment of borrowings of RMB383.0 million (US$62.6 million). As of September 30, 2013, long-term loans (including the portion of long-term borrowings due within one year) in the amount of RMB278.0 million (US$45.4 million) will be due for repayment upon maturity within one year after September 30, 2013 and long-term loans in the amount of RMB31.0 million (US$5.1 million) will be due for repayment upon maturity in September 30, 2015.
 
6	

 	
 
In addition, the Company has substantial repayment obligations under convertible notes that it has issued. On May 17, 2011, the Company issued convertible senior notes in the principal amount of US$125 million due 2016, bearing an annual interest rate of 4.00%, with an option for holders to require us to repurchase their notes in May 2014 for the principal of the notes plus accrued and unpaid interest. Concurrent with the Company’s issuance of the convertible senior notes, it entered into a capped call option transaction with an affiliate of the initial purchaser of the notes. The Company paid a total premium for the capped call option of US$18.0 million. As of September 30, 2013, the Company had US$123.0 million of the convertible notes due 2016 outstanding.
 
On April 23, 2012, Jinko Solar Co., Ltd., the Company’s wholly-owned operating subsidiary incorporated in the PRC, issued unsecured one-year short-term bonds with a principal amount of RMB300 million. The bonds bear a fixed annual interest rate of 6.3% and will mature on April 23, 2013. On January 29, 2013, Jinko Solar Co., Ltd. issued six-year bonds with a principal amount of RMB800 million, bearing a fixed annual interest rate of 8.99%. At the end of the third year in the life of the bonds, Jinko Solar Co., Ltd. has the option to raise the interest rate by up to 100 basis points, and the bondholders will have the right to require Jinko Solar Co., Ltd. to repurchase all or part of their bonds upon Jinko Solar Co., Ltd.’s announcement of whether or not it decides to raise the interest rate, and by how much, at such time. On March 19, 2013, the Company entered into loan facilities for an aggregate principal amount of RMB360 million (approximately US$58.8 million) and a term of 15 years with China Development Bank.
 
On September 25, 2013, the Company completed a follow-on public offering of 4,370,000 ADSs, receiving aggregate net proceeds of approximately US$67.3 million, after deducting discounts and commissions and offering expenses.
 
The Company had negative working capital as of September 30, 2013. The Company’s management believes that its current cash position as of September 30, 2013, the cash expected to be generated from operations and funds available from borrowings under the bank quotas will be sufficient to meet its working capital and capital expenditure requirements for at least the next twelve months from September 30, 2013. However, in light of the amount of bank borrowings and bonds are due in the near term future and exercise of the put option of the convertible senior notes on May 14, 2014, sufficient funds may not be available. Accordingly, the Company may need to reduce discretionary spending and raise additional funds through public or private equity or debt financing. Any additional equity financing may be dilutive to its shareholders and debt financing, if available, may involve covenants that would restrict the Company. Additional funds may not be available on terms commercially acceptable to the Company or at all. Failure to manage discretionary spending and raise additional capital or debt financing as required may adversely impact the Company’s ability to achieve its intended business objectives.
 
Cash Flows and Working Capital
 
The following table sets forth a summary of the Company’s cash flows for the periods indicated:
 
 	 	For the Nine Months Ended September 30,	 	
 	 	2012	 	 	2013	 	 	2013	 	
 	 	(RMB)	 	 	(RMB)	 	 	(US$)	 	
 	 	(in thousands)	 	
Net cash provided by operating activities	 	 	723,773.5	 	 	 	514,631.7	 	 	 	84,090.1	 	
Net cash used in investing activities	 	 	(380,829.0	)	 	 	(1,203,322.3	)	 	 	(196,621.3	)	
Net cash (used in)/provided by financing activities	 	 	(549,054.7	)	 	 	1,364,577.4	 	 	 	222,970.2	 	
Effect of foreign exchange rate changes on cash and cash equivalents	 	 	708.6	 	 	 	(5,014.4	)	 	 	(819.3	)	
Net (decrease)/increase in cash and cash equivalent	 	 	(205,401.6	)	 	 	670,872.4	 	 	 	109,619.7	 	
Cash and cash equivalents, beginning of year	 	 	433,851.0	 	 	 	279,130.0	 	 	 	45,609.5	 	
Cash and cash equivalents, end of year	 	 	228,449.4	 	 	 	950,002.4	 	 	 	155,229.2	 	
 
7	

 	
 
Operating Activities
 
Net cash provided by operating activities in the nine months ended September 30, 2013 was RMB514.6 million (US$84.1 million), consisting primarily of (i) a decrease in accounts receivable of RMB356.5 million (US$58.3 million); (ii) an increase in other payables and accruals of RMB117.6 million (US$19.2 million), primarily due to an increase in subsidy payments for several power plants; an increase in the payment of interest on bonds and increase in accrued warranty cost; (iii) a change in fair value of convertible senior notes of RMB201.8 million (US$33.0 million) and (iv) an increase in advances from customers of RMB193.2 million (US$31.6 million), primarily due to improved credit terms with the Company’s customers and decreased accounts receivable turnover, partially offset by (i) an increase in notes receivable of RMB196.3 million (US$32.1 million), primarily due to the receipt of one customer’s RMB141.0 million (US$23.0 million) corporate acceptance notes; (ii) an increase in prepayments and other current assets of RMB141.8 million (US$23.2 million), primarily due to an increase in the balance of VAT recoverable of RMB137.7 million (US$22.5 million), as more raw material purchased and (iii) the reversal of provision for allowance of doubtful accounts of RMB119.0 million (US$19.4 million), primarily due to settlement of long-aged accounts receivable which were previously provided for.
 
Investing Activities
 
Net cash used in investing activities in the nine months ended September 30, 2013 was RMB1,203.3 million (US$196.6 million), consisting primarily of (i) cash paid for short-term investments of RMB1,368.2 million (US$223.6 million); (ii) the purchase of property, plant and equipment of RMB387.6 million (US$63.3 million) and (iii) cash paid for project assets of RMB373.6 million (US$61.1 million), partially offset by cash collected for short-term investments of RMB1,244.3 million (US$203.3 million).
 
Financing Activities
 
Net cash provided by financing activities in the nine months ended September 30, 2013 was RMB1,364.6 million (US$223.0 million), consisting primarily of (i) borrowings from third parties of RMB2,451.7 million (US$400.6 million); (ii) proceeds from Jinko Solar Co., Ltd.’s January 2013 bond issuance of RMB800.0 million (US$130.7 million); (iii) proceeds from the September 2013 follow-on offering of RMB414.7 million (US$67.8 million) and (iv) an increase in notes payable of RMB406.8 million (US$66.5 million), primarily due to draw down in the credit quotes provided by major banks for issuing acceptance note, partially offset by (i) repayment of borrowings to third parties of RMB2,455.9 million (US$401.3 million) and (ii) repayment of bonds payable of RMB300.0 million (US$49.0 million) for the Company’s short-term bonds.
 
Contractual Obligations
 
The following table sets forth the contractual obligations of the Company as of September 30, 2013.
 
 	 	Payment due by period	 	
 	 	Total	 	 	Less than 1 year	 	 	1-3 years	 	 	3-5 years	 	 	More than 5 years	 	
Contractual Obligations	 	(RMB in thousands)	 	
Short-term Debt Obligations*		 	 	2,058,828.8	 	 	 	2,058,828.8	 	 	 	-	 	 	 	-	 	 	 	-	 	
Long-term Debt Obligations*		 	 	659,292.0	 	 	 	27,697.7	 	 	 	86,318.2	 	 	 	60,417.6	 	 	 	484,858.5	 	
Bonds Payable and Accrued Interests		 	 	968,812.2	 	 	 	71,920.0	 	 	 	896,892.2	 	 	 	-	 	 	 	-	 	
Convertible Senior Notes*		 	 	771,746.3	 	 	 	771,746.3	 	 	 	-	 	 	 	-	 	 	 	-	 	
Operating Lease Obligations		 	 	17,611.0	 	 	 	8,893.2	 	 	 	5,256.1	 	 	 	2,478.8	 	 	 	982.9	 	
Capital Commitment		 	 	392,835.9	 	 	 	373,942.4	 	 	 	18,893.5	 	 	 	-	 	 	 	-	 	
Total		 	 	4,869,126.2	 	 	 	3,313,028.4	 	 	 	1,007,360.0	 	 	 	62,896.4	 	 	 	485,841.4	 	
*Include accrued interest
 
8	

 
Exhibit 99.2
 
INDEX TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL 
STATEMENTS OF JINKOSOLAR HOLDING CO., LTD
 
Unaudited Interim Condensed Consolidated Financial statements
 
Unaudited Condensed Consolidated Statements of Operations for the Nine Months Ended September 30, 2012 and 2013	F-2	
 	 	
Unaudited Condensed Consolidated Statements of Comprehensive (Loss)/Income for the Nine Months Ended September 30, 2012 and 2013	F-3	
 	 	
Unaudited Condensed Consolidated Balance Sheets as of December 31, 2012 and September 30, 2013	F-4	
 	 	
Unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity
For the Nine Months Ended September 30, 2012 and 2013	F-5	
 	 	
Unaudited Condensed Consolidated Statements of Cash Flows for the Nine Months Ended
September 30, 2012 and 2013	F-6	
 	 	
Notes to Unaudited Interim Condensed Consolidated Financial Statements	F-7	
 
F-1	

 	
 
JINKOSOLAR HOLDING CO., LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2013
 
 	 	 	 	 	For the nine months ended	 	
 	 	Notes	 	 	September 30,
2012	 	 	September 30, 2013	 	
 	 	 	 	 	RMB	 	 	RMB	 	 	USD	 	
 	 	 	 	 	 	 	 	 	 	 	(Note 2 (ac))	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenues	 	 	   	 	 	 	3,627,601,970	 	 	 	4,890,772,677	 	 	 	799,145,862	 	
Cost of revenues	 	 	 	 	 	 	(3,439,359,969	)	 	 	(3,994,260,322	)	 	 	(652,656,915	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross profit	 	 	 	 	 	 	188,242,001	 	 	 	896,512,355	 	 	 	146,488,947	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating expenses:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Selling and marketing	 	 	 	 	 	 	(258,721,378	)	 	 	(349,478,501	)	 	 	(57,104,330	)	
General and administrative	 	 	 	 	 	 	(246,721,320	)	 	 	(127,663,422	)	 	 	(20,860,036	)	
Provision for advance to suppliers	 	 	 	 	 	 	(133,873,440	)	 	 	-	 	 	 	-	 	
Research and development	 	 	 	 	 	 	(48,703,722	)	 	 	(36,130,324	)	 	 	(5,903,648	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	 	 	 	 	 	 	(688,019,860	)	 	 	(513,272,247	)	 	 	(83,868,014	)	
(Loss)/Income from operations	 	 	 	 	 	 	(499,777,859	)	 	 	383,240,108	 	 	 	62,620,933	 	
Interest expense, net	 	 	 	 	 	 	(165,399,348	)	 	 	(170,013,190	)	 	 	(27,779,933	)	
Subsidy income	 	 	 	 	 	 	284,000	 	 	 	4,059,702	 	 	 	663,350	 	
Exchange loss	 	 	 	 	 	 	(46,176,385	)	 	 	(31,968,168	)	 	 	(5,223,557	)	
Other income, net	 	 	 	 	 	 	8,333,169	 	 	 	7,366,349	 	 	 	1,203,652	 	
Change in fair value of forward contracts	 	 	 	 	 	 	(59,043,309	)	 	 	32,643,286	 	 	 	5,333,870	 	
Change in fair value of convertible senior notes and capped call options	 	 	 	 	 	 	(28,489,562	)	 	 	(160,862,531	)	 	 	(26,284,727	)	
(Loss)/Income before income taxes	 	 	 	 	 	 	(790,269,294	)	 	 	64,465,556	 	 	 	10,533,588	 	
Income tax benefit/(expenses)	 	 	 	 	 	 	9,000,780	 	 	 	(18,185,248	)	 	 	(2,971,446	)	
Equity in losses of affiliated companies	 	 	 	 	 	 	-	 	 	 	(21,731,063	)	 	 	(3,550,827	)	
Net (loss)/income	 	 	 	 	 	 	(781,268,514	)	 	 	24,549,245	 	 	 	4,011,315	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Less: Net income attributable to the non-controlling interests	 	 	 	 	 	 	16,937	 	 	 	823,487	 	 	 	134,557	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net (loss)/income attributable to JinkoSolar Holding Co., Ltd.’s ordinary shareholders	 	 	 	 	 	 	(781,285,451	)	 	 	23,725,758	 	 	 	3,876,758	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net (loss)/income attributable to JinkoSolar Holding Co., Ltd.’s ordinary shareholders per share -	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	 	 	 	 	(8.80	)	 	 	0.27	 	 	 	0.04	 	
Diluted	 	 	 	 	 	 	(8.80	)	 	 	0.26	 	 	 	0.04	 	
Net (loss)/income attributable to JinkoSolar Holding Co., Ltd.’s ordinary shareholders per ADS -	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	 	 	 	 	(35.20	)	 	 	1.08	 	 	 	0.16	 	
Diluted	 	 	 	 	 	 	(35.20	)	 	 	1.04	 	 	 	0.16	 	
Weighted average ordinary shares outstanding -	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	 	 	 	 	88,748,445	 	 	 	89,317,742	 	 	 	89,317,742	 	
Diluted	 	 	 	 	 	 	88,748,445	 	 	 	91,097,669	 	 	 	91,097,669	 	
 
Each ADS represents four ordinary shares
 
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
 
F-2	

 	
 
JINKOSOLAR HOLDING CO., LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2013
 
 	 	 	 	 	For the nine months ended	 	
 	 	Notes	 	 	September 30,
2012	 	 	September 30, 2013	 	
 	 	 	 	 	RMB	 	 	RMB	 	 	USD	 	
 	 	 	 	 	 	 	 	 	 	 	(Note 2 (ac))	 	
Net (loss)/income	 	 	     	 	 	 	(781,268,514	)	 	 	24,549,245	 	 	 	4,011,315	 	
Other comprehensive (loss)/income:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  -Foreign currency translation adjustments	 	 	 	 	 	 	(135,883	)	 	 	5,256,459	 	 	 	858,899	 	
Comprehensive (loss)/income	 	 	 	 	 	 	(781,404,397	)	 	 	29,805,704	 	 	 	4,870,214	 	
Less: comprehensive income attributable to non-controlling interest	 	 	 	 	 	 	16,937	 	 	 	823,487	 	 	 	134,557	 	
Comprehensive (loss)/income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders	 	 	 	 	 	 	(781,421,334	)	 	 	28,982,217	 	 	 	4,735,657	 	
  
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
 
F-3	

 	
 
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2012 AND SEPTEMBER 30, 2013
 
 	 	Notes	 	 	December 31,
2012	 	 	September 30, 2013	 	
 	 	 	 	 	RMB	 	 	RMB	 	 	USD	 	
 	 	 	 	 	 	 	 	 	 	 	(Note 2 (ac))	 	
ASSETS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Current assets:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents	 	 	    	 	 	 	279,130,015	 	 	 	950,002,457	 	 	 	155,229,160	 	
Restricted cash	 	 	 	 	 	 	140,760,763	 	 	 	388,424,476	 	 	 	63,468,052	 	
Short-term investments	 	 	 	 	 	 	722,461,319	 	 	 	846,302,659	 	 	 	138,284,748	 	
Accounts receivable, net - related parties	 	 	 	 	 	 	105,531,368	 	 	 	284,336,234	 	 	 	46,460,169	 	
Accounts receivable, net - third parties	 	 	 	 	 	 	1,712,685,219	 	 	 	1,409,422,691	 	 	 	230,297,825	 	
Notes receivable - related parties	 	 	 	 	 	 	-	 	 	 	41,000,000	 	 	 	6,699,346	 	
Notes receivable, net - third parties	 	 	 	 	 	 	1,423,773	 	 	 	192,151,072	 	 	 	31,397,234	 	
Advances to suppliers - third parties	 	 	 	 	 	 	63,552,991	 	 	 	92,774,164	 	 	 	15,159,177	 	
Inventories	 	 	 	 	 	 	527,962,378	 	 	 	629,624,028	 	 	 	102,879,743	 	
Forward contract receivables	 	 	 	 	 	 	12,930,159	 	 	 	26,751,795	 	 	 	4,371,208	 	
Other receivables-related parties	 	 	 	 	 	 	5,840,380	 	 	 	141,642	 	 	 	23,144	 	
Capped call options	 	 	 	 	 	 	-	 	 	 	56,592,820	 	 	 	9,247,193	 	
Prepayments and other current assets	 	 	 	 	 	 	413,330,793	 	 	 	557,338,229	 	 	 	91,068,338	 	
Total current assets	 	 	 	 	 	 	3,985,609,158	 	 	 	5,474,862,267	 	 	 	894,585,337	 	
Non-current assets:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Restricted cash	 	 	 	 	 	 	14,800,000	 	 	 	15,624,726	 	 	 	2,553,060	 	
Available-for-sale investment	 	 	 	 	 	 	-	 	 	 	23,730,486	 	 	 	3,877,530	 	
Project assets	 	 	 	 	 	 	536,391,099	 	 	 	962,521,180	 	 	 	157,274,703	 	
Investments in affiliates	 	 	 	 	 	 	35,183,709	 	 	 	97,452,646	 	 	 	15,923,635	 	
Property, plant and equipment, net	 	 	 	 	 	 	3,329,872,661	 	 	 	3,331,930,002	 	 	 	544,433,007	 	
Land use rights, net	 	 	 	 	 	 	365,749,215	 	 	 	360,694,637	 	 	 	58,937,032	 	
Intangible assets, net	 	 	 	 	 	 	6,373,598	 	 	 	6,326,925	 	 	 	1,033,812	 	
Forward contract receivables-long term	 	 	 	 	 	 	-	 	 	 	2,848,592	 	 	 	465,456	 	
Capped call options	 	 	 	 	 	 	16,131,208	 	 	 	-	 	 	 	-	 	
Other assets	 	 	 	 	 	 	82,209,673	 	 	 	128,725,499	 	 	 	21,033,577	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	 	 	 	 	 	 	8,372,320,321	 	 	 	10,404,716,960	 	 	 	1,700,117,149	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
LIABILITIES AND SHAREHOLDERS’ EQUITY	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Current liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Accounts payable - related party	 	 	 	 	 	 	30,045,245	 	 	 	28,611,284	 	 	 	4,675,046	 	
Accounts payable - third party	 	 	 	 	 	 	1,347,326,958	 	 	 	1,444,785,505	 	 	 	236,076,063	 	
Notes payable - third party	 	 	 	 	 	 	1,149,136,512	 	 	 	1,555,972,998	 	 	 	254,243,954	 	
Accrued payroll and welfare expenses	 	 	 	 	 	 	206,425,079	 	 	 	228,541,300	 	 	 	37,343,350	 	
Advances from third party customers	 	 	 	 	 	 	121,031,162	 	 	 	313,814,874	 	 	 	51,276,940	 	
Income tax payables	 	 	 	 	 	 	3,275	 	 	 	35,195,291	 	 	 	5,750,865	 	
Other payables and accruals	 	 	 	 	 	 	817,393,146	 	 	 	880,569,214	 	 	 	143,883,858	 	
Other payables due to a related party	 	 	 	 	 	 	2,270,876	 	 	 	2,986,577	 	 	 	488,003	 	
Forward contract payables	 	 	 	 	 	 	5,490,630	 	 	 	9,046,131	 	 	 	1,478,126	 	
Convertible senior notes-current	 	 	 	 	 	 	-	 	 	 	673,228,108	 	 	 	110,004,593	 	
Bonds payable and accrued interests	 	 	 	 	 	 	313,689,778	 	 	 	48,745,777	 	 	 	7,964,996	 	
    Short-term borrowings from third parties, including current portion of long-term bank borrowings	 	 	 	 	 	 	2,245,630,796	 	 	 	2,020,911,191	 	 	 	330,214,247	 	
Total current liabilities	 	 	 	 	 	 	6,238,443,457	 	 	 	7,242,408,250	 	 	 	1,183,400,041	 	
Non-current liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Long-term borrowings	 	 	 	 	 	 	167,000,000	 	 	 	383,000,000	 	 	 	62,581,699	 	
Long term payables	 	 	 	 	 	 	145,515	 	 	 	-	 	 	 	-	 	
Bond payables	 	 	 	 	 	 	-	 	 	 	800,000,000	 	 	 	130,718,954	 	
Accrued warranty costs - non-current	 	 	 	 	 	 	109,338,274	 	 	 	141,826,871	 	 	 	23,174,325	 	
Convertible senior notes	 	 	 	 	 	 	483,581,668	 	 	 	-	 	 	 	-	 	
Forward contract payables-long term	 	 	 	 	 	 	-	 	 	 	62,667	 	 	 	10,240	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	 	 	 	 	 	 	6,998,508,914	 	 	 	8,567,297,788	 	 	 	1,399,885,259	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Shareholders’ equity:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Ordinary shares (US$0.00002 par value, 500,000,000 shares authorized, 88,758,778 and 107,506,334 shares issued and outstanding as of December 31, 2012 and September 30, 2013, respectively)	 	 	 	 	 	 	13,202	 	 	 	15,508	 	 	 	2,534	 	
Additional paid-in capital	 	 	 	 	 	 	1,524,728,796	 	 	 	1,957,728,914	 	 	 	319,890,345	 	
Statutory reserves	 	 	 	 	 	 	179,041,258	 	 	 	179,041,258	 	 	 	29,255,108	 	
Accumulated other comprehensive income	 	 	 	 	 	 	236,395	 	 	 	5,492,854	 	 	 	897,525	 	
 Treasury stock, at cost: 1,723,200 shares of ordinary shares as of December 31, 2012 and September 30, 2013, respectively	 	 	 	 	 	 	(13,875,553	)	 	 	(13,875,553	)	 	 	(2,267,247	)	
Accumulative deficit	 	 	 	 	 	 	(325,021,804	)	 	 	(301,296,046	)	 	 	(49,231,380	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total JinkoSolar Holding Co., Ltd. shareholders' equity	 	 	 	 	 	 	1,365,122,294	 	 	 	1,827,106,935	 	 	 	298,546,885	 	
Non-controlling interests	 	 	 	 	 	 	8,689,113	 	 	 	10,312,237	 	 	 	1,685,005	 	
Total shareholders' equity	 	 	 	 	 	 	1,373,811,407	 	 	 	1,837,419,172	 	 	 	300,231,890	 	
Total liabilities and shareholders' equity	 	 	 	 	 	 	8,372,320,321	 	 	 	10,404,716,960	 	 	 	1,700,117,149	 	
 
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
 
F-4	

 	
 
JINKOSOLAR HOLDING CO., LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2013
 
 	 	 	 	 	Ordinary shares	 	 	 	 	 	 	 	 	JinkoSolar Holding Co., shareholders' equity	 	 	 	 	 	 	 	
 	 	Note	 	 	Number of
shares	 	 	Par
value	 	 	Additional paid
in capital	 	 	Statutory
reserves	 	 	Accumulater
other
comprehasive
(loss)/income	 	 	Treasury
Stock	 	 	Retained
earnings
(Accumulated
deficit)	 	 	Non-
controlling
interest	 	 	Total
shareholders’
equity	 	
 	 	 	 	 	 	 	 	RMB	 	 	RMB	 	 	RMB	 	 	RMB	 	 	RMB	 	 	RMB	 	 	RMB	 	 	RMB	 	
Balance as of December 31, 2011	 	 	 	 	 	 	89,435,058	 	 	 	13,200	 	 	 	1,507,224,827	 	 	 	178,984,364	 	 	 	(134,611	)	 	 	(8,354,423	)	 	 	1,217,457,158	 	 	 	9,983,063	 	 	 	2,905,173,578	 	
Contribution from non-controlling interests	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	8,600,000	 	 	 	8,600,000	 	
Share-based compensation charge	 	 	 	 	 	 	 	 	 	 	 	 	 	 	14,787,431	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	14,787,431	 	
Share repurchase	 	 	 	 	 	 	(694,280	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(5,521,130	)	 	 	 	 	 	 	 	 	 	 	(5,521,130	)	
Foreign currency exchange translation adjustment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(135,883	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(135,883	)	
Net loss	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(781,285,451	)	 	 	16,937	 	 	 	(781,268,514	)	
Balance as of September 30, 2012	 	 	 	 	 	 	88,740,778	 	 	 	13,200	 	 	 	1,522,012,258	 	 	 	178,984,364	 	 	 	(270,494	)	 	 	(13,875,553	)	 	 	436,171,707	 	 	 	18,600,000	 	 	 	2,141,635,482	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance as of December 31, 2012	 	 	 	 	 	 	88,758,778	 	 	 	13,202	 	 	 	1,524,728,796	 	 	 	179,041,258	 	 	 	236,395	 	 	 	(13,875,553	)	 	 	(325,021,804	)	 	 	8,689,113	 	 	 	1,373,811,407	 	
Disposition of non-controlling interests	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	799,637	 	 	 	799,637	 	
Issuance of shares	 	 	 	 	 	 	17,480,000	 	 	 	2,149	 	 	 	411,728,568	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	411,730,717	 	
Share-based compensation charge	 	 	 	 	 	 	 	 	 	 	 	 	 	 	7,823,965	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	7,823,965	 	
Foreign currency exchange translation adjustment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	5,256,459	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	5,256,459	 	
Exercised of share option	 	 	 	 	 	 	1,267,556	 	 	 	157	 	 	 	13,447,585	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	13,447,742	 	
Net income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	23,725,758	 	 	 	823,487	 	 	 	24,549,245	 	
Balance as of September 30, 2013	 	 	 	 	 	 	107,506,334	 	 	 	15,508	 	 	 	1,957,728,914	 	 	 	179,041,258	 	 	 	5,492,854	 	 	 	(13,875,553	)	 	 	(301,296,046	)	 	 	10,312,237	 	 	 	1,837,419,172	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balance as of September 30, 2013 US$ (Notes 2(ac))	 	 	 	 	 	 	107,506,334	 	 	 	2,534	 	 	 	319,890,345	 	 	 	29,255,108	 	 	 	897,525	 	 	 	(2,267,247	)	 	 	(49,231,380	) 	 	 	1,685,005	 	 	 	300,231,890	 	
 
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
 
F-5	

 	
 
JINKOSOLAR HOLDING CO., LTD.
UNAUDITED CONDENSED CONSOLIDATED CASHFLOW STATEMENTFOR THE NINE MONTHS
PERIOD ENDED SEPTEMBER 30, 2012 AND 2013
 
 	 	For the nine months ended	 	
 	 	September 30,
2012	 	 	September 30, 2013	 	
 	 	RMB	 	 	RMB	 	 	USD	 	
 	 	 	 	 	 	 	 	(Note 2 (ab))	 	
Cash flows from operating activities:	 	 	 	 	 	 	 	 	 	 	 	 	
Net (loss)/income	 	 	(781,268,514	)	 	 	24,549,245	 	 	 	4,011,315	 	
Change in fair value of forward contracts	 	 	97,120,700	 	 	 	(13,052,060	)	 	 	(2,132,690	)	
Change in fair value of convertible senior notes	 	 	22,742,635	 	 	 	201,755,541	 	 	 	32,966,591	 	
Change in fair value of capped call options	 	 	5,746,927	 	 	 	(40,893,010	)	 	 	(6,681,864	)	
Share-based compensation charge	 	 	14,787,431	 	 	 	7,823,965	 	 	 	1,278,426	 	
Depreciation of property, plant and equipment	 	 	240,945,797	 	 	 	247,057,129	 	 	 	40,368,812	 	
Depreciation of project assets	 	 	3,780,376	 	 	 	17,926,630	 	 	 	2,929,188	 	
Amortization of land use rights	 	 	4,879,420	 	 	 	5,054,578	 	 	 	825,911	 	
Amortization of intangible assets	 	 	559,494	 	 	 	619,762	 	 	 	101,268	 	
Inventories provision	 	 	254,151,344	 	 	 	117,725,143	 	 	 	19,236,134	 	
Provision(reversal of provision) for allowance of doubtful accounts	 	 	91,144,176	 	 	 	(119,014,746	)	 	 	(19,446,854	)	
Provision for notes receivable	 	 	-	 	 	 	5,588,556	 	 	 	913,163	 	
Provision for advance to suppliers	 	 	133,873,440	 	 	 	-	 	 	 	-	 	
(Gain)/Loss on disposal of property, plant and equipment	 	 	(15,768	)	 	 	693,418	 	 	 	113,304	 	
Gain on disposal of investment in subsidiary	 	 	-	 	 	 	(1,200,363	)	 	 	(196,138	)	
Equity in losses of affiliated companies	 	 	-	 	 	 	21,731,063	 	 	 	3,550,827	 	
Amortization of deferred financing cost	 	 	250,000	 	 	 	-	 	 	 	-	 	
Exchange loss	 	 	46,176,385	 	 	 	31,968,168	 	 	 	5,223,557	 	
Changes in operating assets and liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	
(Increase)/Decrease in accounts receivable	 	 	(537,157,069	)	 	 	356,537,120	 	 	 	58,257,699	 	
Increase in accounts receivable from related parties	 	 	(109,577,429	)	 	 	(178,804,866	)	 	 	(29,216,481	)	
Decrease/(Increase) in notes receivable	 	 	17,012,530	 	 	 	(196,315,855	)	 	 	(32,077,754	)	
Increase in notes receivable from related parties	 	 	-	 	 	 	(41,000,000	)	 	 	(6,699,346	)	
Decrease/(Increase) in advances to suppliers	 	 	45,629,794	 	 	 	(29,221,173	)	 	 	(4,774,701	)	
Increase in advances to suppliers from a related party	 	 	(1,661,620	)	 	 	-	 	 	 	-	 	
Decrease/(Increase) in inventories	 	 	(308,661,124	)	 	 	(219,386,793	)	 	 	(35,847,515	)	
(Increase)/Decrease in other receivables from related parties	 	 	(80,611	)	 	 	5,698,738	 	 	 	931,166	 	
Decrease/(Increase) in prepayments and other current assets	 	 	373,814,988	 	 	 	(141,799,067	)	 	 	(23,169,782	)	
Increase in other assets	 	 	(15,433,996	)	 	 	(17,229,371	)	 	 	(2,815,257	)	
Increase in accounts payable	 	 	939,388,496	 	 	 	101,147,299	 	 	 	16,527,336	 	
Increase/(Decrease) in accounts payable to a related party	 	 	106,876,709	 	 	 	(1,433,961	)	 	 	(234,307	)	
Increase in accrued payroll and welfare expenses	 	 	11,227,627	 	 	 	22,118,609	 	 	 	3,614,152	 	
(Decrease)/Increase in advances from customers	 	 	(8,129,585	)	 	 	193,227,928	 	 	 	31,573,191	 	
(Decrease)/Increase in income tax payables	 	 	(32,882,565	)	 	 	35,192,016	 	 	 	5,750,329	 	
Increase in other payables and accruals	 	 	108,533,496	 	 	 	117,568,038	 	 	 	19,210,465	 	
Net cash provided by operating activities	 	 	723,773,484	 	 	 	514,631,681	 	 	 	84,090,145	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash flows from investing activities:	 	 	 	 	 	 	 	 	 	 	 	 	
Cash collected for short-term investments	 	 	1,188,267,283	 	 	 	1,244,309,416	 	 	 	203,318,532	 	
Cash received from third party for disposal of investment in subsidiaries	 	 	-	 	 	 	2,000,000	 	 	 	326,797	 	
Proceeds from disposal of property, plant and equipment	 	 	793,880	 	 	 	1,424,672	 	 	 	232,790	 	
Proceeds from disposal of intangible assets	 	 	-	 	 	 	431,054	 	 	 	70,434	 	
Government grants received	 	 	31,812,821	 	 	 	49,215,250	 	 	 	8,041,708	 	
(Increase) in restricted cash	 	 	(46,330,730	)	 	 	(284,869,933	)	 	 	(46,547,375	)	
Purchase of property, plant and equipment	 	 	(203,017,855	)	 	 	(387,588,320	)	 	 	(63,331,425	)	
Prepayment of land use rights	 	 	(7,200	)	 	 	(1,441,708	)	 	 	(235,573	)	
Purchase for intangible assets	 	 	(3,318,310	)	 	 	(1,004,143	)	 	 	(164,076	)	
Cash paid for short-term investments	 	 	(1,312,139,057	)	 	 	(1,368,150,756	)	 	 	(223,554,045	)	
Cash paid for investments in affiliates	 	 	(12,784,599	)	 	 	(84,000,000	)	 	 	(13,725,490	)	
Cash paid for project assets	 	 	(24,105,264	)	 	 	(373,647,831	)	 	 	(61,053,568	)	
Net cash used in investing activities	 	 	(380,829,031	)	 	 	(1,203,322,299	)	 	 	(196,621,291	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash flows from financing activities:	 	 	 	 	 	 	 	 	 	 	 	 	
Proceeds from exercise of share options	 	 	-	 	 	 	10,832,250	 	 	 	1,769,975	 	
Proceeds from issuance of bonds	 	 	300,000,000	 	 	 	800,000,000	 	 	 	130,718,954	 	
Capital contributions by non-controlling interests holder	 	 	8,600,000	 	 	 	-	 	 	 	-	 	
Borrowings from third parties	 	 	2,756,544,424	 	 	 	2,451,704,896	 	 	 	400,605,375	 	
Repayment of borrowings to third parties	 	 	(2,684,560,721	)	 	 	(2,455,910,566	)	 	 	(401,292,576	)	
Decrease in cash restricted for notes payable	 	 	75,924,093	 	 	 	36,381,494	 	 	 	5,944,689	 	
(Decrease)/Increase in notes payable	 	 	(5,562,521	)	 	 	406,836,486	 	 	 	66,476,550	 	
Repayment of bonds payable	 	 	(1,000,000,000	)	 	 	(300,000,000	)	 	 	(49,019,608	)	
Proceeds from issuance of ordinary shares follow-on offerings	 	 	-	 	 	 	414,732,879	 	 	 	67,766,810	 	
Net cash (used in)/provided by financing activities	 	 	(549,054,725	)	 	 	1,364,577,439	 	 	 	222,970,169	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Effect of foreign exchange rate changes on cash and cash equivalents	 	 	708,572	 	 	 	(5,014,379	)	 	 	(819,343	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net (decrease)/increase in cash and cash equivalent	 	 	(205,401,700	)	 	 	670,872,442	 	 	 	109,619,680	 	
Cash and cash equivalents, beginning of year	 	 	433,850,961	 	 	 	279,130,015	 	 	 	45,609,480	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents, end of year	 	 	228,449,261	 	 	 	950,002,457	 	 	 	155,229,160	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Supplemental disclosure of cash flow information	 	 	 	 	 	 	 	 	 	 	 	 	
Cash paid for income tax	 	 	(26,276,342	)	 	 	20,949	 	 	 	3,423	 	
Cash paid for interest expenses (net of amounts capitalized)	 	 	182,849,532	 	 	 	130,574,465	 	 	 	21,335,697	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Supplemental disclosure of non-cash investing and financing cash flow information	 	 	 	 	 	 	 	 	 	 	 	 	
Purchases of property, plant and equipment included in other payables - net	 	 	53,696,086	 	 	 	167,121,055	 	 	 	27,307,362	 	
Purchases of project assets included in other payables - net	 	 	279,641,240	 	 	 	255,032,030	 	 	 	41,671,900	 	
Shares repurchase utilizing prepayment made in prior year	 	 	5,521,130	 	 	 	-	 	 	 	-	 	
Proceeds from exercise of share options received in subsequent period	 	 	-	 	 	 	2,776,348	 	 	 	453,652	 	
Payment of issuance cost for follow-on offering in subsequent period	 	 	-	 	 	 	3,002,162	 	 	 	490,549	 	
  
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
 
F-6	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 	1.	ORGANIZATION AND NATURE OF OPERATIONS	
 
JinkoSolar Holding Co., Ltd. (the "Company") was incorporated in the Cayman Islands on August 3, 2007. On May 14, 2010, the Company became listed on the New York Stock Exchange (“NYSE”) in the United States. The Company and its subsidiaries (collectively the “Group”) are principally engaged in the design, development, production and marketing of photovoltaic products and also provide solar system integration services as well as developing commercial solar power projects.
 
JinkoSolar Technology Limited (“Paker”, formally known as Paker Technology Limited) was incorporated in Hong Kong as a limited liability company on November 10, 2006 by a Hong Kong citizen and a citizen of People's Republic of China ("the PRC"), who held the investment on behalf of three PRC shareholders (the "Shareholders") via a series of entrustment agreements. On December 16, 2008, all of the then existing shareholders of Paker exchanged their respective shares of Paker for equivalent classes of shares of the Company (the "Share Exchange"). As a result, Paker became a wholly-owned subsidiary of the Company. On December 13, 2006, Paker established Jinko Solar Co., Ltd. (“Jiangxi Jinko”) as a wholly foreign owned enterprise in Shangrao, Jiangxi province, the PRC.
 
In June 2009, the Company acquired 100% equity interest in Zhejiang Jinko for a total consideration of RMB100 million. The acquisition was consummated on June 30, 2009. Consequently, the Company consolidated the financial statements of Zhejiang Jinko starting from June 30, 2009. Zhejiang Jinko is a solar cell manufacturer which was also one of Jiangxi Jinko's major solar wafer customers before the acquisition.
 
The following table sets forth information concerning the Company’s major subsidiaries as of September 30, 2013:
Subsidiaries	 	Date of
Incorporation /Acquisition	 	Place of
Incorporation	 	Percentage of
ownership	 	
 	 	 	 	 	 	 	 	
JinkoSolar Technology Limited (“Paker”)	 	November 10, 2006	 	Hong Kong	 	 	100	%	
 	 	 	 	 	 	 	 	 	
Jinko Solar Co., Ltd. (“Jiangxi Jinko”)	 	December 13, 2006	 	PRC	 	 	100	%	
 	 	 	 	 	 	 	 	 	
Zhejiang Jinko Solar Co., Ltd.("Zhejiang Jinko")	 	September 30, 2009	 	PRC	 	 	100	%	
 	 	 	 	 	 	 	 	 	
JinkoSolar International Limited (“JinkoSolar International”)	 	November 25, 2009	 	Hong Kong	 	 	100	%	
 	 	 	 	 	 	 	 	 	
Jinko Solar Import and Export Co., Ltd. ("Jinko Import and Export")	 	December 24, 2009	 	PRC	 	 	100	%	
 	 	 	 	 	 	 	 	 	
Zhejiang Jinko Trading Co., Ltd.("Zhejiang Trading")	 	September 13, 2010	 	PRC	 	 	100	%	
 	 	 	 	 	 	 	 	 	
Jiangxi Photovoltaic Materials Co., Ltd ("Jiangxi Materials")	 	December 1, 2010	 	PRC	 	 	100	%	
 	 	 	 	 	 	 	 	 	
JinkoSolar GmbH (“Jinko GmbH”)	 	April 1, 2010	 	Germany	 	 	100	%	
 	 	 	 	 	 	 	 	 	
JinkoSolar (U.S.) Inc. ("Jinko US")	 	August 19, 2010	 	USA	 	 	100	%	
 	 	 	 	 	 	 	 	 	
JinkoSolar (Switzerland) AG(“Jinko Switzerland”)	 	May 3, 2011	 	Switzerland	 	 	100	%	
 	 	 	 	 	 	 	 	 	
JinkoSolar Italy S.R.L. (“Jinko Italy”)	 	July 8, 2011	 	Italy	 	 	100	%	
 	 	 	 	 	 	 	 	 	
JinkoSolar (US) Holdings Inc.(“Jinko US Holding”)	 	September 7, 2011	 	USA	 	 	100	%	
 	 	 	 	 	 	 	 	 	
JinkoSolar SAS (“Jinko France”)	 	September 12, 2011	 	France	 	 	100	%	
 	 	 	 	 	 	 	 	 	
Haining JinkoSolar Investment Co., Ltd. ("Haining Investment")	 	September 14, 2012	 	PRC	 	 	100	%	
 	 	 	 	 	 	 	 	 	
Jinko Solar Canada Co., Ltd (“Jinko Canada”)	 	November 18, 2011	 	Canada	 	 	100	%	
 	 	 	 	 	 	 	 	 	
Jinko Solar Australia Holdings Co. Pty Ltd (“Jinko Australia”)	 	December 7, 2011	 	Australia	 	 	100	%	
 
F-7	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 	2.	PRINCIPAL ACCOUNTING POLICIES	
 
 	a.	Basis of presentation and use of estimates	
 
The accompanying unaudited condensed consolidated financial statements were prepared on a basis substantially consistent with the Company’s audited consolidated financial statements for the year ended December 31, 2012. These unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“US GAAP”) for interim financial information.
 
In the opinion of the Company’s management, the accompanying unaudited condensed consolidated financial statements contain all normal recurring adjustments necessary for a fair statement of the Company’s interim condensed consolidated financial statements as of and for the Nine months ended September 30, 2012 and September 30, 2013. The year-end condensed balance sheet data as of December 31, 2012 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and related notes as of and for the year ended December 31, 2012.
 
The preparation of unaudited interim condensed consolidated financial statements in conformity with US GAAP requires the Company’s management to make estimates and assumptions that affect the amounts reported and related disclosures. Actual results could materially differ from these estimates. The Group bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Company’s unaudited interim condensed consolidated financial statements include allowance for doubtful receivables, provision for inventories and advances to suppliers, impairment of long-lived assets, the economic useful lives of property, plant and equipment and intangible assets, assumptions used to measure impairment of goodwill, property, plant and equipment, project assets and intangible assets, certain accrued liabilities including accruals for warranty costs, accounting for share-based compensation, fair value measurements, legal contingencies, and income taxes and related tax valuation allowance, and the assessment of going concern assumption as discussed below.
 
The Company has negative working capital at September 30, 2013. Management believes that the Company’s current cash position as of September 30, 2013, the cash expected to be generated from operations and funds available from borrowings under the bank quotas will be sufficient to meet the Company’s operation needs for at least the next twelve months from September 30, 2013. However, given that certain bank borrowings and bonds are due within the near term future (Note 17), and the put option of the convertible senior notes on May 15, 2014 (Note 20), sufficient funds may not be available to the Company. Accordingly, the Company may need to reduce discretionary spending and raise additional funds through public or private equity or debt financing. Any additional equity financing may be dilutive to stockholders and debt financing, if available, may involve covenants that would restrict the Company. Additional funds may not be available on terms favourable to the Company or at all. Failure to manage discretionary spending or raise additional capital or debt financing as required may adversely impact the Company’s ability to achieve its intended business objectives. The Company believes, although it is not certain, that it will be able to maintain compliance with the convertible senior notes covenants including the put option of the notes on May 15, 2014 to repurchase the notes (Note 20) and repay short term borrowings and other liabilities as those become due for at least the next twelve months from September 30, 2013, and as such, these financial statements are prepared under the going concern assumption which contemplates the realization of assets and the liquidation of liabilities in the ordinary course of business.
 
F-8	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 	b.	Consolidation	
 
The unaudited interim condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation.
 
For the Company’s majority-owned subsidiaries, non-controlling interests is recognized to reflect the portion of their equity which is not attributable, directly or indirectly, to the Group.
 
 	c.	Foreign currency translation	
 
The Group's reporting currency is the Renminbi (“RMB”), the official currency in the PRC. The Company and certain subsidiaries use RMB as their functional currency. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates quoted by the People's Bank of China (the “PBOC”) prevailing at the dates of the transactions. Gains and losses resulting from foreign currency transactions are included in the consolidated statements of operations. Monetary assets and liabilities denominated in foreign currencies are translated into RMB using the applicable exchange rates quoted by the PBOC at the applicable balance sheet dates. All such exchange gains or losses are included in exchange loss in the consolidated statements of operations.
 
For consolidation purpose, the financial statements of the Company’s subsidiaries whose functional currencies are other than the RMB are translated into RMB using exchange rates quoted by PBOC. Assets and liabilities are translated at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and revenues, expenses and gains and losses are translated using the average exchange rates for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of in accumulated other comprehensive income in the consolidated statement of comprehensive income/ (loss).
 
The RMB is not a freely convertible currency. The PRC State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into foreign currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in China’s foreign exchange trading system market.
 
 	d.	Cash and cash equivalents	
 
Cash and cash equivalents represent cash on hand and demand deposits placed with banks or other financial institutions, which have original maturities of three months or less.
 
 	e.	Restricted cash	
 
Restricted cash represents deposits legally held by a bank which are not available for the Group’s general use. These deposits are held as collateral for issuance of letters of credit, letters of guarantee and bank acceptance notes to vendors for purchase of machinery, inventory, and forward contracts.
 
 	f.	Short-term investments	
 
Short-term investments represent the bank time deposits with original maturities longer than three months and less than one year.
 
F-9	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 	g.	Available-for-sale investment	
 
Investments in debt and equity securities are, on initial recognition, classified into the three categories: held-to-maturity securities, trading securities and available-for-sale securities. Debt securities that the Company has the positive intent and ability to hold to maturity are classified as held-to-maturity securities and reported at amortized cost. Debt and equity securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value, with unrealized gains and losses included in earnings. Debt and equity securities not classified as either held-to-maturity securities or trading securities are classified as available-for-sale securities and reported at fair value, with unrealized gains and losses recognized in accumulated other comprehensive income.
 
Subsequent to initial recognition, available-for-sale investment is measured at fair value with changes in fair value recognized in accumulated other comprehensive income included in shareholder’s equity. When there is objective evidence that the investment is impaired, the cumulative losses from the declines in fair value that had been recognized directly in accumulated other comprehensive income are removed from equity and recognized in the income statement. When the available-for-sale investment is sold, the cumulative fair value adjustments previously recognized in accumulated other comprehensive income are recognized in the statement of operations and comprehensive loss. The Group evaluates the investments periodically for possible other-than temporary impairment. When other-than-temporary impairment has occurred for an available-for-sale debt security and the Group intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, an impairment loss is recognized in earnings equal to the difference between the investment’s amortized cost basis and its fair value at the balance sheet date. The new cost basis will not be changed for subsequent recoveries in fair value. To determine whether a loss is other-than-temporary, the Group reviews the cause and duration of the impairment, the extent to which fair value is less than cost, the financial condition and near-term prospects of the issuer, and the Group’s intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery of its cost.
 
On September 20, 2013, the parent company (“Issuer”) of one of the Company’s customers issued convertible bond (“Bond”) to the Company in order to settle the outstanding receivables owed by that customer of EUR 2,948,489. The Bond matures on December 31, 2015. Each Bond is convertible into one share at 1:1 ratio during September 1, 2014 to December 31, 2014, or June 1, 2015 to December 31, 2015. The Bond bears a simple interest of 5% per annum and payable every six months in arrears on June 30 and December 31 of each year from 2013 to 2015. The Issuer, at any time, may redeem all the Bonds outstanding by paying a sum of money, an amount equal to the greater of (1) the total nominal value of the Bond issue plus outstanding interest and (2) the counter- value. Upon maturity, the not converted Bond will be reimbursed at the nominal value together with the accrued and unpaid interests to each Bond.
 
The Company recorded such Bond as available-for-sale instruments as its intent is to convert the convertible bonds into common shares when the common stock price appreciates during the two convertible periods, and recorded the fair value change in the Bond in accumulated other comprehensive income.
F-10	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 	h.	Accounts receivable	
 
Specific provisions are made against accounts receivable for estimated losses resulting from the inability of the Group’s customers to make payments. The Group periodically assessed accounts receivable balances to determine whether an allowance for doubtful accounts should be made based upon historical bad debts, specific customer creditworthiness and current economic trends. Accounts receivable in the balance sheets are stated net of such provision, if any. Before approving sales to each customer, the Group conducts a credit assessment for each customer to evaluate the collectability of such sales. The assessment usually takes into consideration the credit worthiness of such customer and its guarantor, if any, the Group’s historical payment experience with such customer, industry-wide trends with respect to credit terms, including the terms offered by competitors, and the macro-economic conditions of the region to which sales will be made. The Group will execute a sales order with a customer and arrange for shipment only if its credit assessment concludes that the collectability with such customer is reasonably assured. The Group may also from time to time require security deposits from certain customers to minimize its credit risk. After the sales are made, the Group closely monitors the credit situation of each customer on an on-going basis for any subsequent change in its financial position, business development and credit rating, and will evaluate whether any of such adverse change warrants further action to be taken by the Group, including asserting claims and/or initiating legal proceedings against the customer and/or its guarantor, as well as making provisions. It is also the Group’s general practice to suspend further sales to any customer with significant overdue balances. The receivable from insurance is only recorded when insurance claim has been submitted to the insurance company and been accepted and acknowledged by the carrier and recovery is considered reasonably assured. Upon recording the recovery, the bad debt expense is reduced.
 
 	i.	Short-term and long-term advances to suppliers	
 
The Group provides short-term and long-term advances to secure its raw material needs, which are then offset against future purchases. The Group continually assesses the credit quality of its suppliers and the factors that affect the credit risk. If there is deterioration in the creditworthiness of its suppliers, the Group will seek to recover its advances to suppliers and provide for losses on advances which are akin to receivables in operating expenses because of suppliers’ inability to return its advances. Recoveries of the allowance for advances to supplier are recognized when they are received. The Company classified short-term and long-term advances to suppliers based on management’s best estimate of the expected purchase in the next twelve-months as of the balance sheet date and the Group’s ability to make requisite purchases under existing supply contracts. The balances expected to be utilized outside of the 12 months are recorded in advances to suppliers to be utilized beyond one year. A provision of advance to suppliers of RMB133,873,440 and nil was recorded for the nine months ended September 30, 2012 and 2013, respectively.
 
 	j.	Inventories	
 
Inventories are stated at the lower of cost or market. Cost is determined using the weighted average method. Provisions are made for excess, slow moving and obsolete inventories as well as for inventories with carrying values in excess of market. Certain factors could impact the realizable value of inventory, so the Group continually evaluates the recoverability based on assumptions about customer demand and market conditions. The evaluation may take into consideration historical usage, expected demand, anticipated sales price, new product development schedules, the effect new products might have on the sale of existing products, product obsolescence, customer concentrations, and other factors. The reserve or write-down is equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory reserves or write-downs may be required that could negatively impact the Group’s gross margin and operating results. If actual market conditions are more favorable, the Group may have higher gross margin when products that have been previously reserved or written down are eventually sold. The sale of previously reserved inventory did not have a material impact on our gross margin percentage for any of the years presented.
 
In addition, the Group analyzes its firm purchase commitments, which currently consist primarily of the fixed price polysilicon supplier agreements, at each period end. Provision is made in the current period when the anticipated inventories cost from future execution of such supplier agreement is in excess of market. There was no loss provision recorded related to these long-term contracts for each of the nine months ended September 30, 2012 and 2013.
 
 	k.	Property, plant and equipment	
 
Property, plant and equipment are stated at cost less accumulated depreciation. Cost includes the prices paid to acquire or construct the assets, interest capitalized during the construction period and any expenditure that substantially extends the useful life of an existing asset. Depreciation, taking into consideration any estimated residual value, is computed using the straight-line method over the following estimated useful lives:
 
F-11	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
Buildings	20 years	
Machinery and equipment	10 years	
Furniture, fixture and office equipment	3-5 years	
Motor vehicles	4-5 years	
 
Construction in progress primarily represents the construction of new production line. Costs incurred in the construction are capitalized and transferred to property, plant and equipment upon completion, at which time depreciation commences.
 
Expenditures for repairs and maintenance are expensed as incurred. The gain or loss on disposal of property, plant and equipment, if any, is the difference between the net sales proceeds and the carrying amount of the disposed assets, and is recognized in the consolidated statement of operations upon disposal.
 
 	l.	Project assets	
 
Project assets consist primarily of costs relating to construction of solar power plants at various stages of development. These costs include costs for land and costs for developing and constructing a PV solar power plant. Project assets are amortized over the expected life of 20 years.
 
 	m.	Interest Capitalization	
 
The interest cost associated with major development and construction projects is capitalized and included in the cost of the property, plant and equipment or project assets. Interest capitalization ceases once a project is substantially complete or no longer undergoing construction activities to prepare it for its intended use. When no debt is specifically identified as being incurred in connection with a construction project, the Group capitalizes interest on amounts expended on the project at the Group’s weighted average cost of borrowing money. Interest expense capitalized for the nine months ended September 30, 2012 and 2013 were RMB 7,208,522 and RMB 6,727,228. 
 
 	n.	Land use rights	
 
Land use rights represent fees paid to obtain the right to use land in the PRC. Amortization is computed using the straight-line method over the terms specified in land use right certificates of 50 years or 70 years, as applicable.
 
 	o.	Intangible assets	
 
Intangible assets include purchase software and fees paid to register trademarks and are amortized on a straight-line basis over their estimated useful lives, which are 5 and 10 years, respectively.
 
 	p.	Business combination	
 
The Group accounts for business combinations using the acquisition method of accounting. This method requires that the acquisition consideration to be allocated to the assets, including separately identifiable intangible assets, and the liabilities that the Company acquires based on their estimated fair values. The Group makes estimates and judgments in determining the fair value of the acquired assets and liabilities based on its experience with similar assets and liabilities in similar industries. If different judgments or assumptions were used, the amounts assigned to the individual acquired assets or liabilities could be materially different.
 
F-12	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 	q.	Investments in affiliates	
 
The Group holds equity investments in affiliates for which it does not have a controlling financial interest, but has the ability to exercise significant influence over the operating and financial policies of the investee. These investments are accounted for under equity method of accounting wherein the Group records its' proportionate share of the investees' income or loss in its consolidated financial statements.
 
Investments are evaluated for impairment when facts or circumstances indicate that the fair value of the investment is less than its carrying value. An impairment is recognized when a decline in fair value is determined to be other-than-temporary. The Group reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (1) nature of the investment; (2) cause and duration of the impairment; (3) extent to which fair value is less than cost; (4) financial conditions and near term prospects of the issuers; and (5) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value.
 
 	r.	Impairment of long-lived assets	
 
The Group’s long-lived assets include property, plant and equipment, project assets and other intangible assets with finite lives. The Group’s business requires heavy investment in manufacturing equipment that is technologically advanced, but can quickly become significantly under-utilized or rendered obsolete by rapid changes in demand for solar power products produced with those equipment.
 
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that carrying amount of an asset may not be recoverable. Factors considered important that could result in an impairment review include significant underperformance relative to expected historical or projected future operating results, significant changes in the manner of use of acquired assets and significant negative industry or economic trends. The Group may recognize impairment of long-lived assets in the event the net book value of such assets exceeds the future undiscounted cash flows attributable to these assets. If the total of the expected undiscounted future net cash flows is less than the carrying amount of the asset, a loss, if any, is recognized for the difference between the fair value of the asset and its carrying value. Fair value is generally measured based on either quoted market prices, if available, or discounted cash flow analyses..
 
 	s.	Leases	
 
Leases are classified as capital or operating leases. A lease that transfers to the lessee substantially all the benefits and risks incidental to ownership is classified as a capital lease. At inception, a capital lease is recorded at the present value of minimum lease payments or the fair value of the asset, whichever is less. Assets under capital leases are amortized on a basis consistent with that of similar fixed assets or the lease term, whichever is less. Operating lease costs are recognized on a straight-line basis over the lease term.
 
 	t.	Revenue recognition	
 
The Group recognizes revenue for product sales when persuasive evidence of an arrangement exists, delivery of the product has occurred and title and risk of loss has passed to the customer, the sales price is fixed or determinable and the collectability of the resulting receivable is reasonably assured. For all sales, the Group requires a contract or purchase order which quantifies pricing, quantity and product specifications.
 
For sales of photovoltaic products from PRC to foreign customers, delivery of the products generally occurs at the point in time the product is delivered to the named port of shipment, which is when the risks and rewards of ownership are transferred to the customer. For sales of PV products to domestic customers in PRC or by foreign subsidiaries, delivery of the product occurs generally at the point in time the product is received by the customer, which is when the risks and rewards of ownership have been transferred. In the case of sales that are contingent upon customer acceptance, revenue is not recognized until the deliveries are formally accepted by the customers.
  
F-13	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
The Group enters into certain sales contracts with retainage terms since the second half of 2012, under which customers were allowed to withhold payment of 5% to 10% of the full contract price as retainage after a specified period which generally range from one year to two years (the “Retainage Period”).  Given the limited experience the Group has with respect to the collectability of the retainage, the Group defers recognition of the retainage as revenue until the customers pay it after the Retainage Period expires. As of September 30, 2013, the total amounts of retainage that were not recognized as revenue were RMB158,548,329.
 
The Group provides solar power product processing services to customers and the revenue of processing services is recognized upon completion which is generally evidenced by delivery of processed products to the customers.
 
The Company recognizes revenue related to solar system integration projects on the percentage-of-completion method. The Company estimates its revenues by using the cost-to-cost method, whereby it derives a ratio by comparing the costs incurred to date to the total costs expected to be incurred on the project. The Company applies the ratio computed in the cost-to-cost analysis to the contract price to determine the estimated revenues earned in each period. When the Company determines that total estimated costs will exceed total revenues under a contract, it records a loss accordingly.
 
The Company recognized income from generated electricity as revenue upon completion of development and connection of the solar power plant to the grid.
 
Advance payments received from customers for the future sale of inventory are recognized as advances from third party customers in the consolidated balance sheets. Advances from third party customers are recognized as revenues when the conditions for revenue recognition described above have been satisfied. Advances from third party customers have been recognized as a current liability because the amount at each balance sheet date is expected to be recognized as revenue within twelve months.
 
 In the PRC, value added tax (“VAT”) at a general rate of 17% on invoice amount is collected on behalf of tax authorities in respect of the sales of product and is not recorded as revenue. VAT collected from customers, net of VAT paid for purchases, is recorded as a liability until it is paid to the tax authorities.
 
 	u.	Segment report	
 
During the third quarter of 2013, we changed our organizational structure as part of our transformation to a products manufacturing and solar projects developing company. As a result of these changes, information that the Company’s chief operating decision maker regularly reviews for purposes of allocating resources and assessing performance changed. Therefore, beginning in the third quarter of 2013, we are reporting our financial performance based on our new segments: manufacturing segment and solar projects segment.
 
The Company uses the management approach in determining reportable operating segments.  The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions, allocating resources and assessing performance as the source for determining the Company’s reportable segments. Management has determined that the Company operates our business in two segments, as that term is defined by FASB ASC Topic 280,  Segment reporting .
 
Our first segment is the vertically integrated solar power products manufacturing business (“manufacturing segment”), from silicon ingots, wafer, cell to solar modules.
 
Our second segment is the downstream solar projects (“solar projects segment”), through which we develop, construct and operate the solar projects, including (i) project development, (ii) engineering, procurement, and construction (“EPC”), (iii) connecting solar projects to the grid, operating and maintenance (“O&M”).
 
F-14	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 	v.	Warranty cost	
 
Solar modules produced by the Group are typically sold with either a 2-year or 5-year warranty for product defects, and a 10-year and 25-year warranty against declines of more than 10% and 20%, respectively, from the initial minimum power generation capacity at the time of delivery. Therefore, the Group is exposed to potential liabilities that could arise from these warranties. The potential liability is generally in the form of product replacement or repair.
 
Due to limited warranty claim history, the Group estimates warranty costs based on an assessment for its competitors’ history while incorporating estimates of failure rates through its quality review. Consequently, the Group accrues the equivalent of 1% of gross revenues as a warranty liability to accrue the estimated cost of its warranty obligations. Actual warranty costs incurred for warranty claims by customers are recorded in and charged against the accrued warranty liability. To the extent that actual warranty costs differ from the estimates, the Group will prospectively revise its accrual rate.
 
We purchase warranty insurance policy which provides coverage for the product warranty services of our solar modules worldwide. Prepayment for warranty insurance premium is initially recorded as other assets and is amortized over the insurance coverage period. Prepayment for warranty insurance premium is not recorded as reduction of estimated warranty liabilities .  Once the Company receives insurance recoveries, warranty expenses will be credited. The accrual for warranty cost as of December 31, 2012 and September 30, 2013 was RMB130,517,641 and RMB 175,800,203, respectively. The warranty costs were classified as current liabilities under other payables and accruals, and non-current liabilities under accrued warranty costs - non-current, respectively, which reflect our estimate of the timing of when the warranty expenditures will likely be made. For the nine months ended September 30, 2012 and 2013, warranty cost expenses were RMB30,892,883 and RMB46,536,617, respectively. The utilization of the warranty accruals for the nine months ended September 30, 2012 and 2013 were RMB6,400,635 and RMB1,254,055.
 
 	w.	Income taxes	
 
Income taxes are accounted for under the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and any tax loss and tax credit carry forwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates or tax laws is recognized in the consolidated statements of operations in the period the change in tax rates or tax laws is enacted. A valuation allowance is provided to reduce the amount of deferred income tax assets if it is considered more likely than not that some portion or all of the deferred income tax assets will not be realized.
 
The accounting for uncertain tax positions requires that the Company recognizes in the consolidated financial statements the impact of an uncertain tax position, if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group's policy is to recognize, if any, tax related interest as interest expenses and penalties as general and administrative expenses. The Group did not have any interest and penalties associated with uncertain tax positions in the nine months ended September 30, 2012 and 2013, as there were no uncertain tax positions.
 
 	x.	Fair value of financial instruments	
 
The Company does not have any non-financial assets or liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (also referred to as an exit price). A hierarchy is established for inputs used in measuring fair value that gives the highest priority to observable inputs and the lowest priority to unobservable inputs. Valuation techniques used to measure fair value shall maximize the use of observable inputs.
 
F-15	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
When available, the Company measures the fair value of financial instruments based on quoted market prices in active markets, valuation techniques that use observable market-based inputs or unobservable inputs that are corroborated by market data. Pricing information the Company obtains from third parties is internally validated for reasonableness prior to use in the consolidated financial statements. When observable market prices are not readily available, the Company generally estimates the fair value using valuation techniques that rely on alternate market data or inputs that are generally less readily observable from objective sources and are estimated based on pertinent information available at the time of the applicable reporting periods. In certain cases, fair values are not subject to precise quantification or verification and may fluctuate as economic and market factors vary and the Company's evaluation of those factors changes. Although the Company uses its best judgment in estimating the fair value of these financial instruments, there are inherent limitations in any estimation technique. In these cases, a minor change in an assumption could result in a significant change in its estimate of fair value, thereby increasing or decreasing the amounts of the Company's consolidated assets, liabilities, equity and net income.
 
The Company's financial instruments consist principally of cash and cash equivalents, restricted cash, short-term investments, accounts and notes receivable, forward contract receivable, other receivables, prepayments and other current assets, capped call options, accounts and notes payable, other payables and accruals, forward contract payables, bonds payable, short-term borrowings, long-term borrowings, guarantee liabilities and convertible senior notes .
 
The Company elects to classify the cash flows related to realized gain or loss on settlement of foreign exchange forward contracts as operating activities, which are based on the nature of the cash flows the derivative is economically hedging.
 
 	y.	Government grants	
 
Government grants related to technology upgrades and enterprise development are recognized as subsidy income when received. These subsidies were non-recurring, not refundable and with no conditions, including none related to specific use or disposition of the funds, attached. Such amounts were recorded as subsidy income in the consolidated statements of operations. There are no defined rules and regulations to govern the criteria necessary for companies to enjoy such benefits and the amount of financial subsidy is determined at the discretion of the relevant government authorities.
 
Government grants related to assets are initially recorded as other payables and accruals which are then deducted from the carrying amount when the assets are ready for use.
 
 	z.	Earnings/(Loss) per share	
 
Basic earnings(loss) per share is computed by dividing net income(loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period using the two-class method. Under the two-class method, net income is allocated between ordinary shares and other participating securities based on their participating rights. Diluted earnings(loss) per share is calculated by dividing net income(loss) attributable to ordinary shareholders, as adjusted for the change in income or loss as result from the assumed conversion of those participating securities, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary share equivalents consist of the ordinary shares issuable upon the conversion of the convertible senior notes (using the if-converted method) and ordinary shares issuable upon the exercise of outstanding share options (using the treasury stock method). Potential dilutive securities are not included in the calculation of dilutive earnings per share if the effect is anti-dilutive.
 
F-16	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 	aa.	Share based compensation	
 
The Company’s share-based payment transactions with employees, including share options, are measured based on the grant-date fair value of the equity instrument issued. The fair value of the award is recognized as compensation expense, net of estimated forfeitures, over the period during which an employee is required to provide service in exchange for the award, which is generally the vesting period.
 
 	ab.	Other comprehensive income/(loss)	
 
Other comprehensive income/(loss) is defined as the change in equity during a period from non-owner sources. The Company’s other comprehensive income/(loss) for each period presented is comprised of foreign currency translation adjustment of the Company’s foreign subsidiaries whose assets and liabilities are translated from their respective functional currencies at exchange rates in effect at the balance sheet date, and revenues and expenses are translated at average exchange rates prevailing during the applicable period.
 
ac. Convenience translation
 
Translations of amounts from RMB into United States dollars ("US$" or "USD") are solely for the convenience of readers and were calculated at the rate of RMB6.1200 to US$1.00, the noon buying rate in effect on September 30, 2013, as set forth in the H.10 statistical release of the Federal Reserve Board. No representation is intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into US$ at that rate on September 30, 2013, or at any other rate.
 
ad. Investments
 
Investments in entities where the Group does not have a controlling financial interest, but have the ability to exercise significant influence over the operating and financial policies of the investee, are accounted for using the equity method of accounting. Under the equity method of accounting, the Group's share of the investee's results of operations is included in equity gain/(loss) for the investee in the Group's consolidated statements of operations. Unrealized gains on transactions between the Company and the equity method investees are eliminated to the extent of the Group’s interest in the investees, if any; unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
 
On December 20, 2012, JinkoSolar signed a strategic cooperation agreement with Jinchuan Group Co., Ltd. ("Jinchuan Group"), a Chinese state-owned enterprise, to jointly invest and establish a Company (“Gansu Jintai” or “investee”), to develop 200 MW photovoltaic ("PV") solar power plant in Jinchang, Gansu Province, China. The Group held 28% equity interest in Gansu Jintai and accounts for its investment in Gansu Jintai using the equity method as the Group has the ability to exercise significant influence over the operating and financial policies of the investee. The Group’s share of Gansu Jintai ’s results of operations is included in equity gain/(loss) in affiliated companies in the Group’s consolidated statements of operations.
 
 	ae.	Recent accounting pronouncements	
 
In December 2011, the FASB issued ASU 2011-11, Balance Sheet (Topic 210), "Disclosures about Offsetting Assets and Liabilities " (ASU 2011-11). This newly issued accounting standard requires an entity to disclose both gross and net information about instruments and transactions eligible for offset in the statements of financial position as well as instruments and transactions executed under a master netting or similar arrangement and was issued to enable users of financial statements to understand the effects or potential effects of those arrangements on their financial position. This ASU is required to be applied retrospectively and is effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. The adoption of this standard did not have an impact on the Group's financial statements.
 
F-17	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
In July 2012, the FASB issued ASU 2012-02, Intangibles-Goodwill and Other (Topic 350), Testing Indefinite-Lived Intangible Assets for Impairment . ASU 2012-02 gives companies an option to first assess qualitative factors to determine whether the existence of events and circumstances indicate it is more-likely-than-not that an indefinite-lived intangible asset is impaired. If based on its qualitative assessment, a company concludes that it is more-likely-than-not that the fair value of an indefinite-lived intangible asset is less than its carrying amount, quantitative impairment testing is required. However, if a company concludes otherwise, quantitative impairment testing is not required. ASU 2012-02 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012, with early adoption permitted. The adoption of this accounting standard in the first quarter of 2013 did not have an impact on the Group's financial statements.
 
In February 2013, the FASB issued ASU 2013-02, "Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income ". This update does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, this update requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. This update is effective prospectively for reporting periods beginning after December 15, 2012 for public entities. The adoption of this Update beginning on January 1, 2013 did not have an impact on the Group's financial statements.
 
 	3.	REVENUES	
 
The Group's revenues for the respective periods are detailed as follows:
 
 	 	For the nine months ended	 	
 	 	September 30, 2012	 	 	September 30, 2013	 	
 	 	RMB	 	 	RMB	 	
Sales of solar modules	 	 	3,006,372,065	 	 	 	4,611,999,419	 	
Sales of silicon wafers	 	 	296,658,163	 	 	 	62,559,008	 	
Sales of solar cells	 	 	98,044,664	 	 	 	102,294,313	 	
Sales of silicon ingots	 	 	1,885,648	 	 	 	1,174,960	 	
Sales of recovered silicon materials	 	 	270,406	 	 	 	4,550,593	 	
Processing service fees	 	 	142,824,118	 	 	 	45,803,712	 	
Solar system integration projects	 	 	79,796,445	 	 	 	201,056	 	
Revenue from generated electricity	 	 	-	 	 	 	46,898,983	 	
Others	 	 	1,750,461	 	 	 	15,290,633	 	
Total	 	 	3,627,601,970	 	 	 	4,890,772,677	 	
 
The Company began developing solar projects in 2011. As of September 30, 2013, the Company has completed 105MW worth of solar projects. Before July 1, 2013, the Company did not accrue the government subsidy for electricity revenues from solar projects due to the lack of detailed government guidelines and uncertainty over the timing of subsidy payment. During the third quarter of 2013, the Chinese government announced a series of policies aimed at streamlining and standardizing government subsidy payments for electricity revenues from solar projects in China as well as expanding the amount invested in renewable energy. In addition, the Company received the government subsidy payments for electricity revenues from solar projects for the year 2012 during the third quarter of 2013. As the result of the increased policy clarity and payment certainty, the Company has begun to accrue the government subsidy for electricity revenue from solar projects starting July 1, 2013.
 
F-18	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
For the electricity revenues in the nine months period ended September 30, 2013, RMB18.8 million was related to the government subsidy for electricity revenues before July 1, 2013 and RMB14.7 million was related to the government subsidy for electricity revenues in the third quarter of 2013.  Excluding the government subsidy for electricity revenues, electricity revenues for electricity from solar projects were RMB 13.3 million.
 
The following table summarizes the Group's net revenues generated in respective geographic locations:
 
 	 	For the nine months ended	 	
 	 	September 30, 2012	 	 	September 30, 2013	 	
 	 	RMB	 	 	RMB	 	
Inside China (including Hong Kong and Taiwan)	 	 	1,400,283,660	 	 	 	2,213,041,143	 	
Outside China	 	 	 	 	 	 	 	 	
Germany	 	 	1,002,807,713	 	 	 	559,178,326	 	
South Africa	 	 	116,305	 	 	 	489,286,633	 	
Singapore	 	 	14,854,015	 	 	 	370,111,695	 	
India	 	 	24,190,638	 	 	 	269,804,714	 	
America	 	 	132,906,594	 	 	 	213,910,605	 	
Rest of the world	 	 	1,052,443,045	 	 	 	775,439,561	 	
Total	 	 	3,627,601,970	 	 	 	4,890,772,677	 	
 
4. SEGMENT REPORT
 
During the third quarter of 2013, we changed our organizational structure as part of our transformation to a products manufacturing and projects developing company. As a result of these changes, information that the Company’s chief operating decision maker regularly reviews for purposes of allocating resources and assessing performance changed. Therefore, beginning in the third quarter of 2013, we are reporting our financial performance based on our new segments: manufacturing segment and solar projects segment.
 
The following table set forth the results of operations of our segments and reconciliation with our consolidated results of operations for the nine months ended September 30, 2012 and 2013:
 
 	 	For the nine months ended	 	
 	 	September 30, 2012	 	 	September 30, 2013	 	
 	 	RMB	 	 	RMB	 	
 	 	Manufacturing	 	 	Solar
projects	 	 	Elimination	 	 	Total	 	 	Manufacturing	 	 	Solar projects	 	 	Elimination	 	 	Total	 	
Revenues	 	 	3,637,770,978	 	 	 	-	 	 	 	(10,169,008	)	 	 	3,627,601,970	 	 	 	5,083,894,353	 	 	 	46,898,983	 	 	 	(240,020,659	)	 	 	4,890,772,677	 	
Gross profit	 	 	189,590,629	 	 	 	-	 	 	 	(1,348,628	)	 	 	188,242,001	 	 	 	933,042,774	 	 	 	27,050,401	 	 	 	(63,580,820	)	 	 	896,512,355	 	
Interest expense, net	 	 	(165,399,348	)	 	 	-	 	 	 	-	 	 	 	(165,399,348	)	 	 	(162,547,756	)	 	 	(7,465,434	)	 	 	-	 	 	 	(170,013,190	)	
Loss/(Income) before income taxes	 	 	(788,920,666	)	 	 	-	 	 	 	(1,348,628	)	 	 	(790,269,294	)	 	 	138,648,735	 	 	 	13,252,832	 	 	 	(87,436,011	)	 	 	64,465,556	 	
 
 	 	2012	 	 	2013	 	
 	 	December 31	 	 	September 30	 	
 	 	RMB	 	 	RMB	 	
 	 	Manufacturing	 	 	Solar projects	 	 	Elimination	 	 	Total	 	 	Manufacturing	 	 	Solar projects	 	 	Elimination	 	 	Total	 	
Total assets	 	 	7,719,329,082	 	 	 	798,992,874	 	 	 	(146,001,635	)	 	 	8,372,320,321	 	 	 	9,094,808,110	 	 	 	1,952,132,486	 	 	 	(642,223,636	)	 	 	10,404,716,960	 	
 
F-19	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
5. TAXATION
 
The Company and its subsidiaries file separate income tax returns.
 
Cayman Islands
 
Under the current laws of the Cayman Islands, the Company is not subject to tax on its income or capital gains. In addition, upon any payment of dividends by the Company, no Cayman Islands withholding tax is imposed.
 
People’s Republic of China
 
On March 16, 2007, the National People's Congress approved the Corporate Income Tax Law of the People's Republic of China (the "CIT Law") with effective on January 1, 2008. The CIT Law enacted a statutory income tax rate of 25%. As foreign invested enterprises, Jiangxi Jinko and Zhejiang Jinko are entitled to a two year tax exemption from CIT and a 50% CIT reduction for the succeeding three years thereafter. Jiangxi Jinko and Zhejiang Jinko are each subject to CIT rate of 12.5% starting from year 2010 to year 2012.
 
In 2012 and 2013, Zhejiang Jinko and Jiangxi Jinko were designated by their relevant governmental authorities as a High and New Technology Enterprise (“HNTE”) under the CIT Law, and were entitled to a preferential tax rate of 15% for a consecutive 3-year period starting from 2012 and 2013, respectively.
 
Additionally, under the CIT Law, 10% withholding income tax ("WHT") will be levied on foreign investors for dividend distributions from foreign invested enterprises' profit earned after January 1, 2008. For certain treaty jurisdictions such as Hong Kong which has signed double tax arrangement with the PRC, the applicable WHT rate could be reduced to 5% if foreign investors directly hold at least 25% shares of invested enterprises at any time throughout the 12-month period preceding the entitlement to the dividends and they are also qualified as beneficial owners to enjoy the treaty benefit.
 
Hong Kong
 
The Company's subsidiaries established in Hong Kong, Paker and JinkoSolar International are subject to Hong Kong profit tax at a rate of 16.5% on its assessable profit.
 
European Countries
 
Jinko Switzerland is incorporated in Switzerland and according to its current business model where it employs limited staff and generates income exclusively from trading activities conducted outside Switzerland, is subject to a combined federal, cantonal and communal tax rate of 8.62% in 2012.
 
Jinko GMBH is incorporated in Germany and is subject to Germany profit tax rate of approximately 33% on the assessable profit.
 
Jinko Italy is incorporated in Italy and is subject to corporate income tax at 31.4%.
 
United States
 
Both Jinko US and Jinko US Holding are incorporated in Delaware, the United States. Jinko US and Jinko US Holding do not conduct any business in Delaware, thus, they are not subject to Delaware State income tax. Jinko US conducts business in California. It is subject to a progressive federal corporate income tax from 15% to 35% and California state income tax of 8.84%, which is deductible for federal income tax purpose.
 
F-20	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
Canada
 
Jinko Canada is incorporated in Canada and is subject to a federal corporate income tax of 15% and provinces and territories income tax of 11%.
 
Australia
 
Jinko Australia is incorporated in Australia and is subject to corporate income tax at 30%.
 
The current and deferred positions of income tax benefit included in the consolidated statement of operations for the nine months ended September 30, 2012 and 2013 are as follows:
 
 	 	For the nine months ended	 	
 	 	September 30, 2012	 	 	September 30, 2013	 	
 	 	RMB	 	 	RMB	 	
Current income tax benefit/(expense)	 	 	9,000,780	 	 	 	(18,185,248	)	
Income tax benefit	 	 	9,000,780	 	 	 	(18,185,248	)	
 
The Company adopted ASC 740-270 approach for interim period tax computation and reporting. As of September 30, 2012 and 2013, full valuation allowances were provided against deferred tax assets because it was more likely than not that such portion of deferred tax will not be realized based on the future taxable incomes of all its subsidiaries.
 
In the nine months ended September 30, 2012, the Company recorded an out-of-period adjustment of income tax benefit amounted to RMB12,146,071 resulting from income tax filing difference for two PRC entities, which should have been recorded in the year ended December 31, 2011. The originating amount in 2011 was not material to the 2011 consolidated financial statements, nor was the out of period adjustment recorded in the nine months ended September 30, 2012 material to the condensed consolidated financial statements for the nine month period then ended or the year ended December 31, 2012.
 
 	6.	SHORT-TERM INVESTMENTS	
 
Short-term investments included term deposits with original maturity of more than 3 months. The carrying value of term deposits approximated their fair value because such deposits bear market interest rates and have short period of maturity.
 
As of December 31, 2012 and September 30, 2013, term deposits with amount of RMB 40,665,079 and RMB67,291,000 were held as collateral for issuance of bank acceptance notes to vendors for purchase of raw materials.
 
 	7.	ACCOUNTS RECEIVABLE, NET-THIRD PARTIES	
 
Accounts receivable consisted of the following:
 
 	 	2012	 	 	2013	 	
 	 	December 31	 	 	September30	 	
 	 	RMB	 	 	RMB	 	
Accounts receivables	 	 	2,386,356,664	 	 	 	1,916,472,252	 	
Allowance for doubtful accounts	 	 	(673,671,445	)	 	 	(507,049,561	)	
Accounts receivable, net	 	 	1,712,685,219	 	 	 	1,409,422,691	 	
 
F-21	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
Movement of allowance of doubtful accounts
 
 	 	For the nine months ended	 	
 	 	September 30, 2012	 	 	September 30, 2013	 	
 	 	RMB	 	 	RMB	 	
At beginning of year	 	 	179,746,165	 	 	 	673,671,445	 	
Addition	 	 	138,153,703	 	 	 	116,151,710	 	
Write-off	 	 	-	 	 	 	(47,607,138	)	
Reversal	 	 	(47,009,527	)	 	 	(235,166,456	)	
As of September 30	 	 	270,890,341	 	 	 	507,049,561	 	
 
The Group assesses credit worthiness of customers before granting any credit terms. This assessment is primarily based on reviewing of customer’s financial statements and historical collection records, discussion with customers’ senior management, and reviewing of information provided by third parties, such as Dun & Bradstreet and the insurance company that ultimately insures the Group against customer credit default.
 
The significant bad debt reversal represents the cash collection of the fully provided long-term receivables. The Company made bad debt provisions for certain long-term receivables in prior years which were in line with the adverse economic environment in solar industry. With the recovery of solar industry in 2013, the Company made its best effort to improve the cash collection for the long-aged accounts receivables. The cash received was recorded as the reversal of prior year bad debt provision.
 
 	8.	ADVANCES TO THIRD PARTY SUPPLIERS	
 
Advances to third party suppliers consisted of the following:
 
 	 	2012	 	 	2013	 	
 	 	December 31	 	 	September 30	 	
 	 	RMB	 	 	RMB	 	
Advances to suppliers - current	 	 	67,582,991	 	 	 	96,804,164	 	
Advances to suppliers - noncurrent	 	 	223,043,440	 	 	 	223,043,440	 	
Total	 	 	290,626,431	 	 	 	319,847,604	 	
Provision for advances to suppliers	 	 	(227,073,440	)	 	 	(227,073,440	)	
Advances to suppliers, net	 	 	63,552,991	 	 	 	92,774,164	 	
 
The Group's advance payments to suppliers for purchase contracts with term of more than one year were made to two major suppliers, Hoku Materials, Inc. ("Hoku"), a fully owned subsidiary of Hoku Corporation (formerly known as "Hoku Scientific, Inc.") and Wuxi ZhongCai Technologies Co., Ltd., ("Wuxi Zhongcai"), respectively. The Group previously entered into long-term polysilicon supply agreements with each of Hoku and Wuxi Zhongcai. As a result of continuing significant decline in the polysilicon purchase price and the adverse developments in those suppliers’ operations during 2012, including the suspension of their productions, the Group made full provision of RMB223,043,440 for the full outstanding balances of advance payments made to those two suppliers under long-term polysilicon supply contracts during the year ended December 31, 2012. A provision for advance to suppliers of RMB 133,873,440 and nil was recorded for the nine months ended September 30, 2012 and 2013, respectively.
 
As of September 30, 2013, advances to suppliers mainly represent term of less than 1 year payments for procurement of recoverable silicon materials, virgin polysilicon and solar cells and the Group has delivery plan with the respective suppliers to receive the materials in the next twelve months.
 
F-22	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 	9.	INVENTORIES	
 
Inventories consisted of the following:
 
 	 	2012	 	 	2013	 	
 	 	December 31	 	 	September30	 	
 	 	RMB	 	 	RMB	 	
Raw materials	 	 	80,712,251	 	 	 	222,674,017	 	
Work-in-progress	 	 	92,719,649	 	 	 	132,969,306	 	
Finished goods	 	 	354,530,478	 	 	 	273,980,705	 	
Total	 	 	527,962,378	 	 	 	629,624,028	 	
 
Write-down of the carrying amount of inventory to its estimated market value was RMB254,151,344 and RMB117,725,143 for the nine months ended September 30, 2012 and 2013, respectively, and were recorded as cost of revenues in the unaudited condensed consolidated statements of operations.
 
As of September 30, 2013, Jiangxi Jinko had short-term bank borrowings of RMB90,000,000 that were collateralized by inventories totalling RMB212,726,501.
 
 	10.	PREPAYMENTS AND OTHER CURRENT ASSETS	
 
Prepayments and other current assets consisted of the following:
 
 	 	2012	 	 	2013	 	
 	 	December 31	 	 	September 30	 	
 	 	RMB	 	 	RMB	 	
Value-added tax deductible	 	 	209,695,401	 	 	 	347,439,073	 	
Prepayment for share repurchase	 	 	25,963,848	 	 	 	25,395,869	 	
Employee advances	 	 	13,660,674	 	 	 	17,426,645	 	
Prepayment for income tax	 	 	6,390,847	 	 	 	24,286,731	 	
Deposits for customs duty, rental and open bidding for solar projects.	 	 	46,450,079	 	 	 	51,861,818	 	
Receivable from insurance company	 	 	81,388,706	 	 	 	61,151,712	 	
Prepaid insurance premium, rent, and others	 	 	18,040,237	 	 	 	24,257,772	 	
Others	 	 	11,741,001	 	 	 	5,518,609	 	
Total	 	 	413,330,793	 	 	 	557,338,229	 	
 
Value-added tax deductible represented the balance that the Group can utilize to deduct its value-added tax liability within the next 12 months.
 
As of September 30, 2013, all of the employee advances were business related, interest-free, not collateralized and will be repaid or settled within one year from the respective balance sheet dates.
 
Receivable from insurance company represented the insurance compensation which the Group has claimed with the insurance company that insures the Group against customer credit default and the collection of receivable is reasonably assured.
 
F-23	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 	11.	PROPERTY, PLANT AND EQUIPMENT, NET	
 
Property, plant and equipment and related accumulated depreciation are as follows:
 
 	 	2012	 	 	2013	 	
 	 	December 31	 	 	September30	 	
 	 	RMB	 	 	RMB	 	
Buildings	 	 	507,989,849	 	 	 	614,911,996	 	
Machinery and equipment	 	 	3,307,235,601	 	 	 	3,483,235,333	 	
Motor vehicles	 	 	22,609,244	 	 	 	22,795,516	 	
Furniture, fixture and office equipment	 	 	45,729,731	 	 	 	51,732,786	 	
 	 	 	3,883,564,425	 	 	 	4,172,675,631	 	
Less: Accumulated depreciation	 	 	(732,881,877	)	 	 	(978,644,044	)	
Less: Impairment	 	 	(70,260,894	)	 	 	(70,001,179	)	
Subtotal	 	 	3,080,421,654	 	 	 	3,124,030,408	 	
Construction in progress	 	 	249,451,007	 	 	 	207,899,594	 	
Property, plant and equipment, net	 	 	3,329,872,661	 	 	 	3,331,930,002	 	
 
Depreciation expense was RMB240,945,797 and RMB247,057,129 for the nine months ended September 30, 2012 and 2013, respectively.
 
Construction in progress primarily represents the construction of production lines. Costs incurred in the construction are capitalized and transferred to property, plant and equipment upon completion, at time depreciation also commences.
 
Impairment of RMB 70,260,894 related to the retirement of certain equipment in the wafer and cell production line that had become obsolete during the year ended December 31, 2012. There was no impairment provision recorded in the nine months ended September 30, 2012 and 2013.
 
As of September 30, 2013, property, plant and equipment with net book value amounting to RMB2,459,091,136 are pledged as collateral for the Group's short-term and long-term borrowings of RMB1,306,224,218and RMB268,000,000, respectively.
 
 	12.	PROJECT ASSETS	
 
As of December 31, 2012 and September 30, 2013 the balances of project assets was RMB536,391,099 and RMB962,521,180, respectively. As of December 31, 2012 and September 30, 2013, RMB 349,485,131 and RMB486,828,592 of project assets have been completed and connected to the grid. The revenue from connection to the grid for the nine months ended September 30, 2012 and 2013 is nil and RMB46,898,983 (refer to Notes 4), respectively. Depreciation expense of project assets were RMB3,780,376 and RMB17,926,630 for the nine months ended September 30, 2012 and 2013, respectively.
 
As of September 30, 2013, project assets with net book value amounting to RMB325,217,777 are pledged as collateral for the Group's long-term borrowings of RMB359,000,000.
 
 	13.	LAND USE RIGHTS, NET	
 
Land use rights represent fees paid to the government to obtain the rights to use certain lands over periods of 50 or 70 years, as applicable, in the PRC.
 
F-24	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 	 	2012	 	 	2013	 	
 	 	December 31	 	 	September30	 	
 	 	RMB	 	 	RMB	 	
Land use rights	 	 	386,909,459	 	 	 	386,909,459	 	
Less: accumulated amortization	 	 	(21,160,244	)	 	 	(26,214,822	)	
Land use rights, net	 	 	365,749,215	 	 	 	360,694,637	 	
 
Amortization expense was RMB4,879,420 and RMB5,054,578 for the nine months ended September 30, 2012 and 2013, respectively. As of September 30, 2013, estimated amortization expense in each of the next five years is RMB6,665,288.  
 
As of September 30, 2013, land use rights with net book value amounting to RMB283,011,228 are pledged as collateral for the Group's short-term and long-term borrowings of RMB619,475,884 and RMB27,000,000, respectively.
 
14.   OTHER ASSETS
 
Other assets consisted of the following:
 
 	 	2012	 	 	2013	 	
 	 	December 31	 	 	September30	 	
 	 	RMB	 	 	RMB	 	
Prepayments for purchase of property, plant and equipment	 	 	36,411,466	 	 	 	62,257,069	 	
Prepayments for land use right	 	 	-	 	 	 	1,441,708	 	
Prepayment for warranty insurance premium	 	 	44,228,323	 	 	 	59,537,072	 	
Prepaid service fee-non-current portion	 	 	1,114,886	 	 	 	305,739	 	
Others	 	 	454,998	 	 	 	5,183,911	 	
Total	 	 	82,209,673	 	 	 	128,725,499	 	
 
 	15.	OTHER PAYABLES AND ACCRUALS	
 
Other payables and accruals consisted of the following:
 
 	 	2012	 	 	2013	 	
 	 	December 31	 	 	September30	 	
 	 	RMB	 	 	RMB	 	
Payables for purchase of property, plant and equipment	 	 	253,431,693	 	 	 	167,121,055	 	
Payables for project assets	 	 	184,623,149	 	 	 	255,032,030	 	
Government grants related to assets	 	 	181,160,000	 	 	 	210,310,000	 	
Value-added tax and other tax payable	 	 	26,545,382	 	 	 	10,315,828	 	
Freight payables	 	 	28,799,192	 	 	 	44,889,322	 	
Accrued utilities, rentals and interest	 	 	35,204,650	 	 	 	24,233,617	 	
Contracted labor fee	 	 	19,593,436	 	 	 	27,000,305	 	
Accrued warranty cost	 	 	21,179,367	 	 	 	33,973,332	 	
Commission payables	 	 	2,020,242	 	 	 	24,879,938	 	
Accrued professional service fees	 	 	13,844,655	 	 	 	13,555,204	 	
Others	 	 	50,991,380	 	 	 	69,258,583	 	
Total	 	 	817,393,146	 	 	 	880,569,214	 	
 
F-25	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
The government grant related to assets was under Golden Sun Program which was sponsored by China's Ministry of Finance, Ministry of Science and Technology, the National Energy Administration of the National Development and Reform Commission, and the Ministry of Housing and Urban-Rural Development. Jiangxi Jinko and Zhejiang Jinko were granted by the government for the construction of solar power generation facilities under the project. These grants will be deducted from the carrying amount when the assets are ready for use.
 
 	16.	BONDS PAYABLE AND ACCRUED INTEREST	
 
On January 14, 2011, Jiangxi Jinko issued short-term bonds with a principal amount of RMB300,000,000 which bears interest at the rate of 5.28% per annum, and the bond was repaid on January 14, 2012. On March 24, 2011, Jiangxi Jinko issued short-term bonds with a principal amount of RMB300,000,000 which bears interest at the rate of 5.6% per annum, and the bond was repaid on March 23, 2012. On July 11, 2011, Jiangxi Jinko issued short-term bonds with a principal amount of RMB400,000,000 which bears interest at the rate of 6.5% per annum, and the bond was repaid on July11, 2012.
 
On April 24, 2012, Jiangxi Jinko issued short-term bonds with a principal amount of RMB300,000,000 which bears interest at the rate of 6.3% per annum, and the bond was subsequently repaid on April 23, 2013.
 
On January 29, 2013, the Group issued nine-year bonds with an aggregate principal amount of RMB800,000,000 which bears a fixed annual interest rate of 8.99% and will mature on January 29, 2019. At the end of the third year in the life of the bonds, the Group has the option to raise the interest rate by up to 100 basis points, and the bondholders will have the right to require the Company to repurchase all or part of their bonds, at such time. The bonds are recorded on amortized cost basis with the interest rate of 8.99%. Interest expense related to the bonds was RMB 48,745,777 in the nine months ended September 30, 2013.
 
 	17.	BORROWINGS	
 
(a) Short-term borrowings
 
 	 	2012	 	 	2013	 	
 	 	December 31	 	 	September30	 	
 	 	RMB	 	 	RMB	 	
Short-term bank borrowings	 	 	1,917,630,796	 	 	 	1,742,911,191	 	
Long-term bank borrowings-current portion	 	 	328,000,000	 	 	 	278,000,000	 	
Total short-term borrowings	 	 	2,245,630,796	 	 	 	2,020,911,191	 	
 
(b) Long-term borrowings
 
 	 	2012	 	 	2013	 	
 	 	December 31	 	 	September30	 	
 	 	RMB	 	 	RMB	 	
Long-term bank borrowings	 	 	495,000,000	 	 	 	661,000,000	 	
Less: Current portion	 	 	(328,000,000	)	 	 	(278,000,000	)	
Total long-term borrowings	 	 	167,000,000	 	 	 	383,000,000	 	
 
F-26	

 	

JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
Future principal repayments on the long-term borrowings are as follows:
 
Twelve months ending September 30	 	RMB	 	
2014	 	 	278,000,000	 	
2015	 	 	31,000,000	 	
Thereafter	 	 	352,000,000	 	
Total	 	 	661,000,000	 	
 
 	18.	EARNINGS PER SHARE	
 
Basic earnings per share and diluted earnings per share have been calculated as follows:
 
 	 	For the nine months ended	 	
 	 	September 30, 2012	 	 	September 30, 2013	 	
 	 	RMB	 	 	RMB	 	
Numerator:	 	 	 	 	 	 	 	 	
Net (loss)/income attributable to JinkoSolar Holding Co., Ltd.’s ordinary shareholders - Basic	 	 	(781,285,451	)	 	 	23,725,758	 	
Dilutive effect of convertible notes	 	 	-	 	 	 	-	 	
Net (loss)/income attributable to JinkoSolar Holding Co., Ltd.’s ordinary shareholders - Diluted	 	 	(781,285,451	)	 	 	23,725,758	 	
 	 	 	 	 	 	 	 	 	
Denominator:	 	 	 	 	 	 	 	 	
Denominator for basic calculation - weighted average number of ordinary shares outstanding	 	 	88,748,445	 	 	 	89,317,742	 	
Dilutive effects of outstanding share options	 	 	-	 	 	 	-	 	
Dilutive effects of exercised share options	 	 	-	 	 	 	1,779,927	 	
Denominator for diluted calculation - weighted average number of ordinary shares outstanding	 	 	88,748,445	 	 	 	91,097,669	 	
 	 	 	 	 	 	 	 	 	
Basic (loss)/income per share attributable to JinkoSolar Holding Co., Ltd.’s ordinary shareholders	 	 	(8.80	)	 	 	0.27	 	
Diluted (loss)/income per share attributable to JinkoSolar Holding Co., Ltd.’s ordinary shareholders	 	 	(8.80	)	 	 	0.26	 	
 
In the nine months ended September 2012 and 2013, the Company’s average stock price for the period was below the strike price of the call options; therefore the call options were not included in the computation of diluted EPS because of their anti-dilutive effect.
 
In the nine months ended September 30, 2012 and 2013, the convertible bonds was not included in the calculation of diluted EPS because of its anti-dilutive effect.
 
In the nine months ended September 30, 2012, the Company was in the loss situation, therefore the Company’s share options were not included in the computation of diluted EPS because of its anti-dilutive effect. However, the Company’s share options were included in the computation of diluted EPS because of the dilution impact to the nine months ended September 30, 2013.
 
F-27	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 	19.	Employee benefits	
 
The full-time employees of the Company's subsidiaries incorporated in the PRC are entitled to staff welfare benefits, including medical care, welfare subsidies, unemployment insurance and pension benefits and housing funds. These companies are required to pay for these benefits based upon certain percentages of employees' salaries in accordance with the relevant regulations, and to make contributions to the state-sponsored housing, pension and medical plans from the amounts accrued for housing, medical and pension benefits. The total amounts charged to the condensed consolidated statements of operations for such employee benefits were RMB37,287,812 and RMB 44,257,373 for the nine months ended September 30, 2012 and 2013, respectively. The unpaid balances of liability accrued for such employee welfare benefits were RMB154,819,927 and RMB166,378,501 as of December 31, 2012 and September 30, 3013, respectively. The unpaid balance of penalty accrued for employee welfare benefits were RMB12,063,712 and RMB21,770,735 as of December 31, 2012 and September 30, 2013, respectively.
 
The PRC government is responsible for the medical benefits and ultimate pension liability to these employees.
 
 	20.	CONVERTIBLE SENIOR NOTES	
 
The Company issued USD 125 million of convertible senior notes on May 17, 2011 (the “Notes”). The Notes will mature on May 15, 2016. The interest rate is 4% per annum payable semi-annually, in arrears. No accrued interest to be paid on the Notes when they are converted.
 
Holders have the option to convert their Notes from the earlier of (i) when the registration statement of the Notes becomes effective and (ii) the first anniversary of the date on which the Notes are first issued, through to and including the business day prior to the maturity date into ADSs representing the ordinary shares initially at a conversion rate of 29.6307 ADSs per US$1,000 principal amount of Notes (equivalent to an initial conversion price of approximately US$33.75 per ADS).
 
The conversion rate is subject to change on anti-dilution and upon certain fundamental changes. Fundamental changes are defined as 1) any “person” or “group” beneficially owns (directly or indirectly) 50% or more of the total voting power of all outstanding classes of Company’s shares or has the power to elect a majority of the members of the board of directors; 2) Company consolidates with, or merge with or into, another person or the Company sells, assigns, conveys, transfers, leases or otherwise disposes of all or substantially all of its assets, or any person consolidates with, or merges with or into, the Company; 3) Termination of trading of Company’s ADSs; and 4) adoption of a plan relating to our liquidation or dissolution.
 
The holders have the option to require the Company to repurchase the Notes, in whole or in part, in the event of a fundamental change for an amount equal to the 100% of the principal amount and any accrued and unpaid interest in the event of fundamental changes. Management assessed that the likelihood of fundamental change is remote.
 
The holders will have the right to require the Company to repurchase for cash all or any portion of their notes on May 15, 2014 at a repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date. 
 
While the Notes remain outstanding, the Company or its subsidiaries will not create or permit to subsist any security upon its property, assets or revenues (present or future) to secure any international investment securities or to secure any guarantee of or indemnity of any international investment securities unless the obligations under the Notes and the indenture (a) are secured equally and ratably therewith, or (b) have the benefit of such other security, guarantee, indemnity or other arrangement as shall be approved by holders of a majority in aggregate principal amount of the Notes then outstanding.
 
F-28	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
The Company has RMB as its functional currency, and the Notes are denominated in USD. As a result, the conversion feature is dual indexed to the Company’s stock as well as the RMB and USD exchange rate, and is considered an embedded derivative which needs to be bifurcated from the host instrument in accordance with ASC 815.
 
ASC 815-15-25 provides that if an entity has a hybrid financial instrument that would require bifurcation of embedded derivatives under ASC 815, the entity may irrevocably elect to initially and subsequently measure a hybrid financial instrument in its entirety at fair value with changes in fair value recognized in earnings. The fair value election can be made instrument by instrument and shall be supported by concurrent documentation or a preexisting documented policy for automatic election.
 
The Company elected to measure the Notes in their entirety at fair value with changes in fair value recognized as non-operating income or loss at each balance sheet date in accordance with ASC 815-15-25. Further, as the functional currency of the Company is RMB, the fair value of the Notes is translated into RMB at each balance sheet date with the difference being reported as exchange gain or loss. In addition, all issuance costs associated with the Notes offering has been expensed as incurred in the year ended December 31, 2011.
 
The estimated fair value of the Notes amounted to approximately RMB483,581,668 and RMB 673,228,108 as of December 31, 2012 and September 30, 2013. In the nine months ended September 30, 2012 and 2013, the Company recorded foreign exchange loss of RMB2,631,327 and gain of RMB12,109,101, loss from change in fair value of convertible senior notes of RMB22,742,635 and RMB201,755,541, respectively.
 
As a result of the depressed market conditions, the Company repurchased the Notes with face value of US$2 million or 1.6% of the Notes at approximately 41% of the face value as of December 31, 2011.There were no repurchase of the Notes for the Nine months ended September 30, 2012 and 2013. 
 
Capped Call Options
 
Concurrent with the Company’s issuance of the Convertible Senior Notes on May 17, 2011, it entered into a capped call option transactions with an affiliate of the initial purchaser of the Notes. The capped call transaction was designed to reduce the potential dilution that would otherwise occur as a result of new ordinary share issuances upon conversion of the Notes and effectively increase the conversion price of the Notes for the Company to $48.21 per ADS from the actual conversion price to the Notes holders of $33.75 per ADS. The total premium paid by the Company for the capped call transactions was US$18 million. The purchaser of the Notes have the right to require us to repurchase for cash all or any portion of their notes on May 15, 2014 at a repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date.
 
The Company’s functional currency is different from the denomination of the capped call. Therefore, in accordance with ASC 815, Derivatives and Hedging, the Company accounted for the capped call transactions as freestanding derivative assets in the consolidated balance sheets. The derivative is marked to market each reporting period utilizing the binomial model.
 
The fair value of capped call options was RMB16,131,208 and RMB56,592,820 as of December 31, 2012 and September 30, 2013. An amount of loss of RMB5,746,927 and gain of RMB40,893,010 was recorded in change in fair value of capped call options for the nine months ended September 30, 2012 and 2013.
 
F-29	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
21. SHARE BASED COMPENSATION
 
The Company adopted a long-term incentive plan (the "Plan") in July 2009 which was subsequently amended and restated. The Plan provides for the issuance of options of the Company's ordinary shares in the amount of up to 7,325,122. The options have a contractual life of seven years with the exception of certain options granted to an employee that can be exercised until October 1, 2013. From August 28, 2009 to September 15, 2009, options were granted to certain of the Company's administrative and management personnel to purchase in total 3,024,750 shares of the Company's ordinary shares at an exercise price of US$3.13 per share. On April 6, 2010, the exercise price of these share options was adjusted from US$3.13 per share to US$2.08 per share ("repricing"). The impact of this amendment of RMB5,132,052 was recognized during the year ended December 31, 2010 as a result of the IPO condition described below. The share options will generally vest in 5 successive equal annual installments on the last day of each year from the grant date, provided that the personnel's service with the Company has not terminated prior to each such vesting date. For one employee, the share options will vest in a series of 36 successive equal monthly installments, on the last day of each month, commencing from October 1, 2008, provided that the personnel's service with the Company has not terminated prior to each such vesting date.
 
On September 28, 2011, the Company amended and restated the Plan to increase the maximum number of shares that may be issued under the Plan to 9,325,122.
 
On January 25, 2010, the Company granted to certain officers and employees options to purchase 726,250 ordinary shares of the Company at an exercise price of 85% of the initial public offering price per share. These options will vest in five successive equal annual installments on the last day of each year from January 25, 2010, provided that the personnel's service with the Company has not been terminated prior to each such vesting date. These share options were considered as not effectively granted until their exercise price was determined at US$2.08 on April 12, 2010.
 
From April 12, 2010 to April 26, 2010, the Company granted additional options to purchase 785,480 ordinary shares at an exercise price of US$2.08 per share to certain administrative and management personnel. The share options will generally vest in 5 successive equal annual installments on the last day of each year from the grant date, provided that the personnel's service with the Company has not terminated prior to each such vesting date.
 
No portion of any of the above granted share options, even vested, may be exercised prior to and within the 180-day period following an effective initial public offering as defined in the Plan. Given the exercise restriction, the recognition of share-based compensation expense was delayed. Such expense of RMB14,651,329 accumulated from grant date was recognized at the time of the Company's initial public offering on May 14, 2010.
 
On March 11, 2011, the Company granted to certain officers and employees options to purchase 300,000 ordinary shares of the Company at an exercise price of US$5.65 per share. The share options will vest in 5 successive equal annual installments on the last day of each year from the grant date, provided that the personnel's service with the Company has not terminated prior to each such vesting date.
 
On May 3, 2011, the Company granted to one officer options to purchase 100,000 ordinary shares of the Company at an exercise price of US$6.50 per share. The share options will vest in 5 successive equal annual installments on the last day of each year from the grant date, provided that the personnel's service with the Company has not terminated prior to each such vesting date.
 
On October 1, 2011, the Company granted to certain officers and employees options to purchase 4,180,000 and 32,000 ordinary shares of the Company at an exercise price of US$1.42 per share, with which the share options will vest in 5 and 1 successive equal annual installments on the last day of each year from the grant date, respectively, provided that the personnel's service with the Company has not terminated prior to each such vesting date.
 
On November 3, 2011, the Company granted to one officer options to purchase 1,120,000 ordinary shares of the Company at an exercise price of US$1.42 per share. The share options will vest in 24 successive equal monthly installments on the last day of each month from October 1, 2011, provided that the personnel's service with the Company has not terminated prior to each such vesting date.
 
F-30	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
On December 21, 2012, the Company granted to certain officers options to purchase 160,000 ordinary shares of the Company at an exercise price of US$1.42 per share. The share options will vest in 5 successive equal annual installments on the last day of each year from December 21, 2011 and February 1, 2012, provided that the personnel's service with the Company has not terminated prior to each such vesting date.
 
On August 13, 2013, the Company extended the expiration date of the stock options granted to an officer from October 1, 2013 to October 1, 2014. As a result of this modification, the company recorded additional stock-based compensation expense of RMB 1,608,968 during the nine months ended September 30, 2013.
 
 As of September 30, 2013, the company had 6,336,098 options outstanding. Total share-based compensation expense, determined based on the fair value of the options on the grant dates including the incremental charge resulted from the repricing, applying an estimated forfeiture rate of 10%, amounted to approximately RMB59,174,950 of which the amounts of RMB14,787,431 and RMB7,823,965 recognized in the nine months ended September 30, 2012 and 2013, respectively. The Group had unrecognized share-based compensation expenses RMB6,560,904 related to non-vested share options as of September 30, 2013.
 
On October 1, 2013, the Company granted to an officer options to purchase 600,000 ordinary shares of the Company at an exercise price of US$4.38 per share, with which the share options will vest in 12 successive equal monthly installments on the last day of each month from the grant date, provided that the personnel's service with the Company has not terminated prior to each such vesting date. On October 1, 2013, the Company granted to certain employees options to purchase 680,000 ordinary shares of the Company at an exercise price of US$4.38 per share, with which the share options will vest in 3 and 5 successive equal annual installments on the last day of each year from the grant date, respectively, provided that the personnel's service with the Company has not terminated prior to each such vesting date.
 
F-31	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 	22.	RELATED PARTY TRANSACTIONS AND BALANCES	
 
 	(a)	Related party balances	
  
Outstanding amounts due from/to related parties were as follows:
 
 	 	2012	 	 	2013	 	
 	 	December 31	 	 	September 30	 	
 	 	RMB	 	 	RMB	 	
Accounts receivable from related parties:	 	 	 	 	 	 	 	 	
Accounts receivable from subsidiaries of ReneSola Ltd. ("ReneSola", controlled by an immediate family member of the principal shareholders and directors of the Company, who are the executive officers of the Company)	 	 	105,531,368	 	 	 	56,990,772	 	
Accounts receivable due from  Gausu Jintai Electronic Power Company Ltd.("Guasu Jintai", our non-controlling interest company with 28% shares)	 	 	-	 	 	 	227,345,462	 	
 	 	 	 	 	 	 	 	 	
Notes receivalbes from related parties:	 	 	 	 	 	 	 	 	
Notes receivable from subsidiaries of ReneSola Ltd. ("ReneSola", controlled by an immediate family member of the principal shareholders and directors of the Company, who are the executive officers of the Company)	 	 	-	 	 	 	17,000,000	 	
Notes receivable due from  Gausu Jintai Electronic Power Company Ltd.("Guasu Jintai", our non-controlling interest company with 28% shares)	 	 	-	 	 	 	24,000,000	 	
 	 	 	 	 	 	 	 	 	
Other receivables from related parties:	 	 	 	 	 	 	 	 	
Advances of travel and other business expenses to executive directors who are also shareholders	 	 	5,840,380	 	 	 	141,642	 	
 	 	 	 	 	 	 	 	 	
Total	 	 	111,371,748	 	 	 	325,477,876	 	
 	 	 	 	 	 	 	 	 	
Accounts payable due to a related party:	 	 	 	 	 	 	 	 	
Accounts payable due to a subsidiary of ReneSola Ltd. (“ReneSola”, controlled by an immediate family member of the principal shareholders and directors of the Company, who are the executive officers of the Company)	 	 	30,045,245	 	 	 	28,611,284	 	
 	 	 	 	 	 	 	 	 	
Other payables due to a related party:	 	 	 	 	 	 	 	 	
Other payables to Jiangxi Desun Energy Co., Ltd. (Desun, an entity in which our founders and substantial shareholders, Xiande Li, Kangping Chen and Xianhua Li, each holds more than 10%, and collectively hold 73%, of the equity interest) for leasing of land and buildings	 	 	2,161,345	 	 	 	2,986,577	 	
Travelling reimbursements payable to executive directors who are also shareholders	 	 	109,531	 	 	 	-	 	
 	 	 	 	 	 	 	 	 	
Total	 	 	32,316,121	 	 	 	31,597,861	 	
 
Balances due to related parties are interest-free, not collateralized, and have no definitive repayment terms.
 
 	(b)	Related party transactions	
 
For the nine months ended September 30, 2012 and 2013, revenues from sales of products and provision of processing services to subsidiaries of ReneSola amounted to RMB150,705,597 and RMB29,021348, respectively.
 
For the transactions with subsidiaries of Renesola in the nine months ended September 30,2012, these sales and purchases transactions were conducted simultaneously and there was direct linkage between any one or group of buy transactions with any one or group of sell transactions. There was also correlation between the value of raw materials received and the value of finished goods delivered pursuant to the contractual arrangement. These buy and sell transactions with the same counterparty were recognized at net basis and presented separately as sales in the Group’s condensed consolidated statement of operations. In the nine months ended September 30, 2013, the Group entered into processing services agreements with subsidiaries of Renesola, and revenue related to provision of processing services was recognised when such services had been performed.
 
F-32	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
For the nine months ended September 30, 2012 and 2013, raw materials purchased from a subsidiary of ReneSola amounted to RMB266,714,991 and RMB20,854,435.
 
On January 1, 2008, Desun and Jiangxi Jinko entered into an operating lease agreement pursuant to which Desun leased its buildings and land use rights to Jiangxi Jinko for a ten-year period from January 1, 2008 to December 31, 2017. Desun was deconsolidated from the Group on July 28, 2008 and became a related party of the Group. Desun charged Jiangxi Jinko RMB825,228 rental expenses for each of the nine months ended September 30, 2012 and 2013.
 
On December 20, 2012, JinkoSolar has signed a strategic cooperation agreement with Jinchuan Group Co., Ltd. ("Jinchuan Group"), a Chinese state-owned enterprise, to jointly invest and establish a Company (“Gansu Jintai” or “investee”), to develop 200 MW photovoltaic ("PV") solar power plant in Jinchang, Gansu Province, China. (Note 2(ac) In the nine months ended September 30, 2013, sales of solar module to Jinchuan Group amounted to RMB558,124,072.
 
During the nine months ended September 30, 2013, the shareholders provided guarantees for the Group’s several short-term and long-term bank borrowings. As of September 30, 2013, the shareholders provided guarantees for Jiangxi Jinko several short-term and long-term bank borrowings totalling RMB269,995,632 , which mature within the next twelve months from September 30, 2013.
 
F-33	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
23. COMMITMENTS AND CONTINGENCIES
 
(a) Contingencies
 
In the opinion of management, as confirmed by its legal counsel, as of September 30, 2013, the ownership structure of the Group is in compliance with all existing PRC laws and regulations. It is also in the opinion of management that potential losses arising from the ownership structure based on current regulatory environment is remote. However, the Company cannot be assured that the PRC government authorities will not take a view contrary to the opinion of management. In addition, there may be changes and other developments in the PRC laws and regulations or their interpretations. If the current ownership structure of the Group was found to be not in compliance with any existing or future PRC laws or regulations, the Group may be required to restructure its ownership structure and operations in the PRC to comply with current or new PRC laws and regulations.
 
On October 11, 2011, JinkoSolar, along with our directors and officers at the time of our initial public offering, or the Individual Defendents, and the underwriters of our initial public offering were named as defendants in a putative shareholder class action lawsuit filed in the United States District Court for the Southern District of New York captioned Marco Peters v. JinkoSolar Holding Co., Ltd., et al., Case No. 11-CV-7133 (S.D.N.Y.). In an amended complaint filed on September 1, 2012, the plaintiff, representing a class of all purchasers and acquirers of ADSs of JinkoSolar between May 13, 2010 and September 22, 2011, inclusive, alleged that the defendants violated Sections 11 and 12(a)(2) of the Securities Act and Section 10(b) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, by making material misstatements or failing to disclose material information regarding, among other things, JinkoSolar’s compliance with environmental regulations at its Haining facility. The amended complaint also asserted claims against the Individual Defendants for control person liability under Section 15 of the Securities Act and Section 20(a) of the Exchange Act. The amended complaint sought, among other things, certification of the putative class, unspecified compensatory damages (including interest), and costs and expenses incurred in the action.
 
On March 19, 2012, the court entered an order appointing lead plaintiffs in the U.S. Securities Action. On April 2, 2012, the trial court directed lead plaintiffs to file an amended complaint on or before May 30, 2012. On August 1, 2012, JinkoSolar filed a motion to dismiss the amended complaint, as did Stephen Markscheid, who was the only Individual Defendant to have been served in the action. On the same date, the underwriter defendants filed a joinder to JinkoSolar’s motion to dismiss. On January 22, 2013, the court issued a Memorandum and Order granting JinkoSolar’s and Stephen Markscheid’s motions to dismiss in their entirety and dismissing the Amended Complaint as against all defendants. The Court entered judgment in favor of defendants on the same date. On February 19, 2013, lead plaintiffs filed a notice of appeal with respect to the court’s January 22, 2013 Memorandum and Order and Judgment. Oral argument on the appeal was heard on September 18, 2013. Although JinkoSolar was successful before the district court, we cannot guarantee that the decision will be upheld on appeal. Lead plaintiffs’ appeal is currently pending in the United States Court of Appeals for the Second Circuit. The Company is unable to reliably estimate the probability of the case and the range of any exposure if any.
 
In July 2008, we entered into a long-term supply agreement with Wuxi Zhongcai, a producer of virgin polysilicon materials. We provided a prepayment of RMB95.6 million pursuant to such contract. Wuxi Zhongcai subsequently halted production as a result of the adverse changes in the polysilicon market. In February 2013, we sued Wuxi Zhongcai in Shangrao City Intermediate People's Court for the refund of the outstanding balance of our prepayment of RMB93.2 million after deducting delivery made to us by an affiliate of Wuxi Zhongcai. In January 2013, we notified Wuxi Zhongcai to terminate our long-term supply agreement. In February 2013, Wuxi Zhongcai sued us in Shanghai Pudong New Area People's Court for approximately RMB2.7 million for breaching the contract by failing to make allegedly required payments. We considered the recovery of the RMB93.2 million unlikely as a result of the polysilicon market conditions, the mutually alleged claims and the adverse developments in the operations of Wuxi Zhongcai and recorded provisions of RMB93.2 million for the balance of our prepayment to Wuxi Zhongcai. As of the date of this report, these suits are still pending. The Company is unable to reliably estimate the probability of the case and the range of any exposure if any.
 
F-34	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
In March 2012, COGIP S.P.A., or COGIP, one of our customers, initiated arbitration proceedings in the Chinese European Arbitration Centre for approximately EUR20.4 million for damages allegedly relating to the late delivery of modules and defects in our products. We responded to the arbitration summons on April 18, 2012 and raised a counterclaim for the outstanding portion of the purchase price of EUR23,310,000.00 plus liquidated damages of 0.5% of this amount per week since March 6, 2012. On April 24, 2013 we reached a settlement agreement with COGIP, pursuant to which COGIP agreed to pay EUR14 million to us in three installments to settle all claims As of July 31, 2013, we received all settlement payment of EUR14 million from COGIP.
 
(b) Guarantees
 
On September 13, 2009, Jiangxi Jinko entered into a loan agreement with Shangrao Heji Investment Co., Ltd. (“Heji”), in the principal amount of RMB100 million with a term of three years. Of this amount, RMB50 million was outstanding as of March 31, 2011. In consideration of this loan agreement, Heji required Jiangxi Jinko to enter into a guarantee agreement with Jiangxi International Trust Co., Ltd. (”JITCL”) on May 31, 2009 for Heji’s payment obligations under its separate trust loan agreement with JITCL (”JITCL Loan Agreement”), under which JITCL extended a loan to Heji in the principal amount of RMB50 million for a term of three years. In the event that Heji fails to perform its obligations under the JITCL Loan Agreement or otherwise defaults thereunder, Jiangxi Jinko will become liable for Heji’s obligations under the JITCL Loan Agreement. The Company recorded a guarantee liability of RMB1.5 million as of December 31, 2010 and reclassified to short term liability as of December 31, 2011. Corresponding deferred financing cost was recorded and amortized over the period of Jiangxi Jinko’s long-term borrowing. Jiangxi Jinko has fully repaid the entrusted loans in July 2011. In the Nine months ended September 30, 2012, Heji repaid the loan and Jiangxi Jinko was released from its obligations.
 
(c) Operating lease commitments
 
From January 1, 2008, Jiangxi Jinko leased buildings and land use rights from Desun, under a non-cancelable operating lease expiring in January 2018. In addition, the Group also leased office buildings for its offices under non-cancelable operating lease from third parties.
 
Future minimum obligations for operating leases are as follows:
 
Twelve months ending
September 30	 	RMB	 	
2014	 	 	8,893,245	 	
2015	 	 	3,267,404	 	
2016	 	 	1,988,723	 	
2017	 	 	1,667,567	 	
2018	 	 	811,198	 	
Thereafter	 	 	982,890	 	
Total	 	 	17,611,027	 	
 
Rental expense under all operating leases were RMB5,801,306 and RMB6,838,794 for the nine months ended September 30, 2012 and 2013, respectively.
 
(d) Capital commitments
 
The Group entered into several purchase agreements and supplementary agreements with certain suppliers to acquire machineries to be used in the manufacturing of its products. The Group's total future payments under these purchase agreements amounted to RMB392.8million as of September 30, 2013.
 
F-35	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
24. FAIR VALUE MEASUREMENTS
 
A hierarchy is established for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability, developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. As such, fair value is a market-based measure considered from the perspective of a market participant who holds the asset or owes the liability rather than an entity-specific measure. The hierarchy is broken down into three levels based on the reliability of inputs as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs other than the quoted price in active markets that are observable either directly or indirectly, or quoted prices in less active markets; and (Level 3) unobservable inputs with respect to which there is little or no market data, which require the Company to develop its own assumptions.
 
(a) Fair value change in forward contracts
 
The Company has entered into foreign exchange forward contracts with local banks to reduce the exposure of significant changes in exchange rates between Renminbi and foreign currencies. Authoritative guidance requires companies to recognize all of the derivative financial instruments as either assets or liabilities at fair value in the consolidated balance sheets based upon quoted market prices for comparable instruments. The Company's derivative instruments have not met the criteria for hedge accounting within authoritative guidance. Therefore, the foreign currency forward contracts have been recorded at fair value, with the gain or loss on these transactions recorded in the consolidated statements of operations within "Change in fair value of forward contracts" in the period in which they occur. The Company does not use derivative financial instruments for trading or speculative purposes. The Company held foreign exchange forward contracts with a total notional value of US$330 million and EUR109 million as of September 30, 2013. These foreign exchange forward contracts mature between 1 to 15 months. The Company used a discounted cash-flow methodology to measure fair value, which requires inputs such as interest yield curves and foreign exchange rates. The significant inputs used in the aforementioned model can be corroborated with market observable data and therefore the fair value measurements are classified as level 2. Typically, any losses or gains on the forward exchange contracts are offset by re-measurement losses or gains on the underlying balances denominated in non-functional currencies. The Company's foreign currency exchange contract is an over-the-counter instrument.
 
(b) Convertible Senior Notes and Capped Call Options
 
The Company has adopted valuation models to assess the fair value for capped call options and the Notes, as the capped call options are not publicly traded and the trading of the Notes is considered inactive. Management is responsible for determining these fair values and assessing a number of factors. Both capped call options and the Notes are valued using the Binominal Tree option pricing model. The valuation involves complex and subjective judgments as well as the Company’s best estimates on the valuation date. The main inputs to this model include underlying share price, expected share volatility, expected dividend yield, risk free interest rate etc.
 
(c) Available-for-sale investment
 
On a recurring basis, the Company measures available-for-sale investment at fair value. Since the available-for-sale investment does not have quoted price in active markets, the Company has adopted Binomial Tree option pricing model to assess the fair value for Convertible Bond. Management is responsible for determining the fair value and assessing a number of factors. The valuation involves complex and subjective judgements as well as the Company's best estimates on the valuation date. The main inputs to this model include underlying share price of the Issuer, risk free rate, expected volatility, expected dividend yield etc.
 
F-36	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
(d) Recurring change in fair value
 
As of December 31, 2012 and September 30, 2013, information about inputs into the fair value measurements of the Company's assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows:
 
 	 	Fair Value Measurements at Reporting Date Using	 	
 	 	Balance as	 	 	Quote prices in	 	 	Significant	 	 	Significant	 	
 	 	of	 	 	active market	 	 	other	 	 	unobservable	 	
 	 	December	 	 	for identical	 	 	observable	 	 	inputs (Level	 	
Description	 	31, 2012	 	 	assets (level 1)	 	 	inputs (Level 2)	 	 	3)	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Assets:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Foreign exchange forward contracts	 	 	12,930,159	 	 	 	-	 	 	 	12,930,159	 	 	 	-	 	
Capped call options	 	 	16,131,208	 	 	 	-	 	 	 	-	 	 	 	16,131,208	 	
Available-for-sale investment	 	 	-	 	 	 	-	 	 	 	-	 	 	 	-	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Foreign exchange forward contracts	 	 	5,490,630	 	 	 	-	 	 	 	5,490,630	 	 	 	-	 	
Convertible senior notes	 	 	483,581,668	 	 	 	-	 	 	 	-	 	 	 	483,581,668	 	
 
 	 	Fair Value Measurements at Reporting Date Using	 	
 	 	 	 	 	 	 	 	Significant	 	 	 	 	
 	 	Balance as	 	 	Quote prices in	 	 	other	 	 	Significant	 	
 	 	of	 	 	active market for	 	 	observable	 	 	unobservable	 	
 	 	September	 	 	identical assets	 	 	inputs	 	 	inputs	 	
Description	 	30, 2013	 	 	(level 1)	 	 	(Level 2)	 	 	(Level 3)	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Assets:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Foreign exchange forward contracts	 	 	29,600,387	 	 	 	-	 	 	 	29,600,387	 	 	 	-	 	
Capped call options	 	 	56,592,820	 	 	 	-	 	 	 	-	 	 	 	56,592,820	 	
Available-for-sale investment	 	 	23,730,486	 	 	 	-	 	 	 	-	 	 	 	23,730,486	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Foreign exchange forward contracts	 	 	9,108,798	 	 	 	-	 	 	 	9,108,798	 	 	 	-	 	
Convertible senior notes	 	 	673,228,108	 	 	 	-	 	 	 	-	 	 	 	673,228,108	 	
 
The Group's foreign exchange forward contracts are not traded on an exchange, the Group values them using valuation models. The valuation of these contracts used interest rate yield curves and foreign exchange rates as the significant inputs in the valuation models. These inputs are observable in active markets over the terms of the instruments the Group holds.
 
(e) Assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3 valuation)
 
A summary of changes in Level 3 fair value of convertible senior notes for the nine months ended September 30, 2012 and 2013 were as follows:
 
F-37	

 	
 
JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
 	 	For the nine months ended	 	
 	 	September 30, 2012	 	 	September 30, 2013	 	
 	 	RMB	 	 	RMB	 	
Balance at Beginning	 	 	387,777,235	 	 	 	483,581,668	 	
Foreign exchange loss/(gain)	 	 	2,631,327	 	 	 	(12,109,101	)	
Change in fair value of convertible senior notes	 	 	22,742,635	 	 	 	201,755,541	 	
Balance at September 30, 2012 and 2013	 	 	413,151,197	 	 	 	673,228,108	 	
 
A summary of changes in Level 3 fair value of Capped call options for the nine months ended September 30, 2012 and 2013 were as follows:
 
 	 	For the nine months ended	 	
 	 	September 30, 2012	 	 	September 30, 2013	 	
 	 	RMB	 	 	RMB	 	
Balance at Beginning	 	 	16,408,445	 	 	 	16,131,208	 	
Foreign exchange gain/(loss)	 	 	130,857	 	 	 	(431,398	)	
Change in fair value of capped call options	 	 	(5,746,927	)	 	 	40,893,010	 	
Balance at September 30, 2012 and 2013	 	 	10,792,375	 	 	 	56,592,820	 	
 
A summary of changes in Level 3 fair value of available-for-sale investment for the nine months ended September 30, 2013 were as follows:
 
 	 	For the nine months ended
September 30, 2013	 	
 	 	RMB	 	
Balance at Beginning	 	 	-	 	
Receipt of available-for-sale investment	 	 	23,730,486	 	
Foreign exchange gain/(loss)	 	 	-	 	
Balance at September 30, 2013	 	 	23,730,486	 	
 
(f) Change in fair value of derivatives
 
The Change in fair value of derivatives recognized in earnings was as follows:
 
 	 	For the nine months ended	 	
 	 	September 30, 2012	 	 	September 30, 2013	 	
 	 	RMB	 	 	RMB	 	
Foreign exchange forward contracts - realized	 	 	38,077,391	 	 	 	19,591,226	 	
Foreign exchange forward contracts - unrealized	 	 	(97,120,700	)	 	 	13,052,060	 	
Convertible senior notes	 	 	(22,742,635	)	 	 	(201,755,541	)	
Capped call options	 	 	(5,746,927	)	 	 	40,893,010	 	
Total	 	 	(87,532,871	)	 	 	(128,219,245	)	
 
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JINKOSOLAR HOLDING CO., LTD.
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
25.REPURCHASE OF ORDINARY SHARES
 
In the nine months ended September 30, 2012, 173,570 outstanding ADSs” (694,280 shares) were repurchased with a total consideration of RMB5,521,130, which is shown as treasury stock. There was not share repurchase in the nine months ended September 30, 2013.
 
As of September 30, 2013, 430,800 ADSs (1,723,200 shares) were repurchased but have not been retired with a total consideration of RMB13,875,553 which is shown as treasury stock.
 
26. SUBSEQUENT EVENTS
 
Subsequent to September 30, 2013 and up to January 10, 2014, the Group obtained additional short-term bank borrowings and long-term bank borrowings of RMB925.0 million and RMB400 million, respectively, and repaid short-term and long-term bank borrowings of RMB888.8 million and RMB136.0 million, respectively.
 
In January 2014, Zhejiang Jinko entered into an operating lease agreement with the bankruptcy administrator of Zhejiang Topoint Photovoltaic Co., Ltd., Zhejiang Yutai Photovoltaic Material Co., Ltd., Zhejiang Weishida Photovoltaic Material Co., Ltd., and Zhejiang Jiutai New Energy Co., Ltd., (collectively "Topoint") for the manufacturing assets of Topoint. The operating lease started on January 16, 2014 and will be terminated on the date when the bankruptcy reorganization of Topoint is completed. The minimum rental under the lease is RMB6.25 million per month.
 
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