SHANGHAI, Feb. 27, 2017 /PRNewswire/ -- JinkoSolar Holding Co., Ltd. ("JinkoSolar" or the "Company") (NYSE: JKS), a global leader in the solar PV industry, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2016.
In November 2016, the Company completed sale of JinkoSolar Power Engineering Group Limited ("Jinko Power") downstream business in China to Shangrao Kangsheng Technology Co., Ltd. (the "Buyer"), a company incorporated with limited liability under the laws of the People's Republic of China, formed by a buyer consortium led by Mr. Xiande Li, chairman of the board of directors of the Company. According to applicable accounting standards, assets and liabilities related to Jinko Power, including comparatives, are reclassified as assets/liabilities held for sale, while results of operations related to Jinko Power, including comparatives, are reported as income or loss from discontinued operations. Figures presented in this release are related to continuing operations only, and exclude results from Jinko Power unless indicated otherwise. The Company recognized the gain on disposal of discontinued operations of RMB1.01 billion (US$145.2 million) reported in the discontinued operations, and received cash of RMB1.73 billion (US$250.0 million) in the fourth quarter of 2016. The transaction between the related parties mainly includes the modules sales and financing obligation guarantee.
Fourth Quarter 2016 Highlights
Results presented herein exclude Jinko Power-related discontinued operations, unless specified otherwise
Full Year 2016 Highlights
Results presented herein exclude Jinko Power-related discontinued operations, unless specified otherwise
Mr. Kangping Chen, JinkoSolar's Chief Executive Officer commented, "I am pleased to announce a strong quarter to finish out the year with module shipments hitting 1,733 MW and 6,656 MW in the fourth quarter and full year 2016, respectively. I am proud to say that this puts us firmly in the position as the largest module supplier globally. Total revenues during the quarter hit US$737.6 million and US$3.08 billion for the whole year. While market sentiment is gloomy overall, we remain optimistic about the global demand in 2017."
"We successfully complete the spin-off process of Jinko Power's project business which generated US$145.2 million in investment gain for JinkoSolar and strengthened our balance sheet by cutting debt to US$892 million from US$2.1 billion. In January 2017, we further cut our debt by repurchasing almost all of our convertible notes due in 2019 at holders' put option. These initiatives have increased our corporate flexibility and reinforced our financial position which will allow us to take advantage of more opportunities in 2017."
"We further consolidated our leading position across a number of key and emerging markets during the quarter. China remains our largest market where we expect growth momentum to continue during the first half of 2017 as rush orders come in before the FiT cut in June 2017. Demand during the second half of 2017 may soften, but distributed generation and Top Runner projects are expected to make up for the demand. After a sharp decline during the quarter, ASPs in the US have begun to stabilize. While uncertainties remain, we believe that the growth trajectory of the US market won't deviate significantly, especially with ITC still valid. India, with its abundant sunlight and increasing demand for power, has created ideal market conditions for rapid growth. We are very optimistic about our potential in this market and have been rapidly expanding our team there. We will also reinforce our leading position in Latin America and the Middle East, two markets that remain full of opportunities."
"We remain focused on high-efficiency technologies and stringent quality controls. Demand for our PERC products continues to be strong and as a result, we have been adjusting our production capacity to accommodate this market trend since the first half of 2016."
"In conclusion, I am proud of what we have achieved throughout the past quarter and year. We have extensive experience having faced similar market headwinds before, leaving us confident in our strategy and our ability to focus on developing technology, building our brand equity, keeping a lid on costs and improving our financial strength to further drive shareholder value."
Fourth Quarter 2016 Financial Results
Results presented herein exclude Jinko Power-related discontinued operations, unless specified otherwise
Total Revenues
Total revenues in the fourth quarter of 2016 were RMB5.12 billion (US$737.6 million), a decrease of 3.9% from RMB5.33 billion in the third quarter of 2016 and a decrease of 13.7% from RMB5.94 billion in the fourth quarter of 2015. The sequential and year-over-year decreases were mainly attributable to a decline in average selling prices of solar modules in the fourth quarter of 2016.
Gross Profit and Gross Margin
Gross profit in the fourth quarter of 2016 was RMB730.0 million (US$105.1 million), compared with RMB1,026.1 million in the third quarter of 2016 and RMB1,129.8 million in the fourth quarter of 2015. The sequential and year-over-year decreases were mainly attributable to a decline in average selling prices of solar modules in the fourth quarter of 2016.
Gross margin was 14.3% in the fourth quarter of 2016 compared with 19.2% in the third quarter of 2016 and 19.0% in the fourth quarter of 2015.
Income from Operations and Operating Margin
Income from operations in the fourth quarter of 2016 was RMB77.9 million (US$11.2 million), compared with RMB433.3 million in the third quarter of 2016 and RMB465.9 million in the fourth quarter of 2015. Operating margin in the fourth quarter of 2016 was 1.5%, compared with 8.1% in the third quarter of 2016 and 7.8% in the fourth quarter of 2015.
Total operating expenses in the fourth quarter of 2016 were RMB652.1 million (US$93.9 million), an increase of 10.0% from RMB592.8 million in the third quarter of 2016 and a decrease of 1.8% from RMB663.9 million in the fourth quarter of 2015. The sequential increase was mainly due to the increase of the shipping cost, and the provision for impairment and disposal of property, plant and equipment, partially offset by the impact of the reversal of warranty expense during the fourth quarter. We made downward adjustments to our accrued warranty expense in the fourth quarter, to reflect the general declining trend of the average selling price of solar modules, which is a primary input into the estimated warranty expense. Based on the updated warranty estimation, we reversed the warranty expense related to prior years and the first nine months of 2016 by RMB92.1 million (US$13.3 million) and RMB6.0 million (US$0.9 million) respectively.
Total operating expenses accounted for 12.7% of total revenues in the fourth quarter of 2016, compared to 11.1% in the third quarter of 2016 and 11.2% in the fourth quarter of 2015.
Interest Expense, Net
Net interest expense in the fourth quarter of 2016 was RMB74.5 million (US$10.7 million), a decrease of 43.9% from RMB132.9 million in the third quarter of 2016 and a decrease of 15.2% from RMB87.9 million in the fourth quarter of 2015.
Exchange Gain / (Loss), Net
The Company recorded a net exchange gain of RMB17.7 million (US$2.6 million) including change in fair value of forward contracts in the fourth quarter of 2016, compared to a net exchange loss of RMB7.2 million in the third quarter of 2016 and a net exchange gain of RMB89.8 million in the fourth quarter of 2015.
Change in Fair Value of Convertible Senior Notes and Capped Call Options
The Company recognized a loss from a change in fair value of convertible senior notes and capped call options of RMB14.7 million (US$2.1 million) in the fourth quarter of 2016. The Company repurchased substantially all the outstanding convertible senior notes in January 2017.
Income Tax Expense / (Benefit), Net
The Company recorded an income tax benefit of RMB49.2 million (US$7.1 million) from continuing operations in the fourth quarter of 2016, compared with an income tax expense of RMB116.0 million in the third quarter of 2016 and an income tax expense of RMB48.6 million during the fourth quarter of 2015. The sequential change was mainly due to the successful renewal of 'National High and New Technology Enterprise' license for a significant subsidiary and its entitlement to a preferential tax rate.
Income / (loss) from Discontinued Operations, Net of Tax
Income from discontinued operations, net of tax in the fourth quarter of 2016 was RMB 857.5 million (US$123.5 million), compared with an income of RMB82.3 million in the third quarter of 2016 and a loss of RMB34.5 million in the fourth quarter of 2015.
Net Income and Earnings per Share
Net income attributable to the Company's ordinary shareholders in the fourth quarter of 2016 was RMB999.6 million (US$144.0 million), compared with RMB233.7 million in the third quarter of 2016 and RMB349.4 million in the fourth quarter of 2015.
Basic and diluted earnings per ordinary share from continuing operations were RMB1.15 (US$0.17) and RMB1.14 (US$0.16), respectively, during the fourth quarter of 2016. This translates into basic and diluted earnings per ADS of RMB4.60 (US$0.68) and RMB4.56 (US$0.64), respectively.
Total basic and diluted earnings per ordinary share from both continuing and discontinued operations were RMB7.90 (US$1.14) and RMB7.82 (US$1.12), respectively, during the fourth quarter of 2016. This translates into basic and diluted earnings per ADS of RMB31.60 (US$4.56) and RMB31.28 (US$4.48), respectively.
Non-GAAP net income from continuing operations in the fourth quarter of 2016 was RMB228.6 million (US$32.9 million), compared with RMB235.3 million in the third quarter of 2016 and RMB538.9 million in the fourth quarter of 2015.
Non-GAAP basic and diluted earnings from continuing operation per ordinary share were RMB1.81 (US$0.26) and RMB1.79 (US$0.26), respectively during the fourth quarter of 2016. This translates into non-GAAP basic and diluted earnings per ADS of RMB7.24 (US$1.04) and RMB7.16 (US$1.04), respectively.
Financial Position
As of December 31, 2016, the Company had RMB2.82 billion (US$406.2 million) in cash and cash equivalents and restricted cash, compared with RMB2.95 billion as of December 31, 2015.
As of December 31, 2016, the Company's accounts receivables due from third parties were RMB4.75 billion (US$684.7 million), compared with RMB2.69 billion as of December 31, 2015.
As of December 31, 2016, the Company's inventories were RMB4.47 billion (US$644.3 million) due to large demand in 2017 Q1, compared with RMB3.20 billion as of December 31, 2015.
As of December 31, 2016, the Company's total interest-bearing debts were RMB6.19 billion (US$891.7 million), compared with RMB6.27 billion as of December 31, 2015.
Full Year 2016 Financial Results
Results presented herein exclude Jinko Power-related discontinued operations, unless specified otherwise
Total Revenues
Total revenues for the full year 2016 were RMB21.4 billion (US$3.08 billion), an increase of 38.5% from RMB15.45 billion for the full year 2015. The increase in total revenues was mainly attributable to the increase in shipments of solar modules.
Gross Profit and Gross Margin
Gross profit for the full year 2016 was RMB3.87 billion (US$557.3 million), an increase of 32.0% from RMB2.93 billion for the full year 2015. Gross margin was 18.1% for the full year 2016, compared with 19.0% for the full year 2015.
Income from Operations and Operating Margin
Income from operations for the full year 2016 was RMB1.35 billion (US$194.3 million), compared with RMB1.12 billion for the full year 2015. Operating margin for the full year 2016 was 6.3%, compared with 7.3% for the full year 2015.
Total operating expenses for the full year 2016 were RMB2.52 billion (US$363.0 million), an increase of 39.3% from RMB1.81 billion for the full year 2015. Operating expenses represented 11.8% of total revenues for the full year 2016, compared with 11.7% for the full year 2015. The increase in total operating expense was primarily due to the increase of shipping cost, the provision for impairment of property, plant and equipment, partially offset by the impact of warranty expense reversals. The provision for impairment of property, and plant and equipment was due to replacement of the old machines to upgrade production automation.
Interest Expense, Net
Net interest expense for the full year 2016 was RMB359.3 million (US$51.7 million), an increase of 15.5% from RMB311.0 million in 2015.
Exchange Gain / (Loss), Net
The Company recorded an exchange gain of RMB156.2 million (US$22.5 million) in the full year 2016. The Company had net exchange loss of RMB30.0 million in 2015.
Change in Fair Value of Convertible Senior Notes and Capped Call Options
The Company recognized a loss from a change in fair value of convertible senior notes and capped call options of RMB110.2 million (US$15.9 million) for the full year 2016, compared with a loss of RMB14.6 million in 2015. The Company repurchased substantially all the convertible senior notes in January 2017.
Income Tax Expense, Net
The Company recognized an income tax expense of RMB257.5 million (US$37.1 million) for the full year 2016, compared with an income tax expense of RMB100.5 million in 2015.
Income / (Loss) from Discontinued Operations, Net of Tax
Income from discontinued operations, net of tax, in 2016 was RMB1,001.6 million (US$144.3 million), compared with an income of RMB93.8 million in 2015.
Net Income and Earnings per Share
Net income attributable to the Company's ordinary shareholders for the full year 2016 was RMB1.83 billion (US$263.1 million), compared with a net income of RMB683.8 million in 2015.
Basic and diluted income per share from continuing operations for the full year 2016 was RMB7.87 (US$1.13) and RMB7.26 (US$1.05), respectively. This translates into basic and diluted earnings per ADS of RMB31.48 (US$4.52) and RMB29.04 (US$4.20), respectively.
Total basic and diluted earnings per share from continuing and discontinued operations for the full year 2016 were RMB14.51 (US$2.09) and RMB13.35 (US$1.93), respectively. This translates into basic and diluted earnings per ADS of RMB58.04 (US$8.36) and RMB53.40 (US$7.72), respectively.
Non-GAAP net income from continuing operations for the full year 2016 was RMB1.25 billion (US$179.4 million), compared with non-GAAP net income of RMB1.06 billion in 2015.
Non-GAAP basic and diluted earnings per share from continuing operations for the full year 2016 were RMB9.90 (US$1.43) and RMB9.07 (US$1.31), respectively, which translates into non-GAAP basic and diluted earnings per ADS of RMB39.60 (US$5.72) and RMB36.28 (US$5.24), respectively.
Fourth Quarter and Full Year 2016 Operational Highlights
Solar Module Shipments
Total solar module shipments in the fourth quarter of 2016 amounted to 1,733 MW.
Total solar module shipments in 2016 amounted to 6,656 MW, compared to 4,512 MW in 2015.
Solar Products Production Capacity
As of December 31, 2016, the Company's in-house annual silicon wafer, solar cell and solar module production capacity was 5.0 GW, 4.0 GW and 6.5 GW, respectively.
Recent Business Developments
Operations and Business Outlook
First Quarter and Full Year 2017 Guidance
For the first quarter of 2017, the Company estimates total solar module shipments to be in the range of 1.9 GW to 2.0 GW.
For the full year 2017, the Company estimates total solar module shipments to be in the range of 8.5 GW and 9.0 GW.
Conference Call Information
JinkoSolar's management will host an earnings conference call on Monday, February 27, 2017 at 8:00 a.m. U.S. Eastern Time (9:00 p.m. Beijing / Hong Kong the same day).
Dial-in details for the earnings conference call are as follows:
Hong Kong / International: |
+852-5808-3202 |
|
U.S. Toll Free: |
+1-855-298-3404 |
|
Passcode: |
JinkoSolar |
|
Please dial in 10 minutes before the call is scheduled to begin and provide the passcode to join the call.
A telephone replay of the call will be available 2 hours after the conclusion of the conference call through 23:59 U.S. Eastern Time, March 6, 2017. The dial-in details for the replay are as follows:
International: |
+61-2-9641-7900 |
|
U.S. Toll Free: |
+1-866-846-0868 |
|
Passcode: |
6221419 |
|
Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of JinkoSolar's website at www.jinkosolar.com.
About JinkoSolar Holding Co., Ltd.
JinkoSolar (NYSE: JKS) is a global leader in the solar industry. JinkoSolar distributes its solar products and sells its solutions and services to a diversified international utility, commercial and residential customer base in China, the United States, Japan, Germany, the United Kingdom, Chile, South Africa, India, Mexico, Brazil, the United Arab Emirates, Italy, Spain, France, Belgium, and other countries and regions. JinkoSolar has built a vertically integrated solar product value chain, with an integrated annual capacity of 5.0 GW for silicon ingots and wafers, 4.0 GW for solar cells, and 6.5 GW for solar modules, as of December 31, 2016.
JinkoSolar has over 15,000 employees across its 6 productions facilities in Jiangxi, Zhejiang and Xinjiang Provinces, China, Malaysia, Portugal and South Africa, 15 oversea subsidiaries in Japan (2), Singapore, India, Turkey, Germany, Italy, Switzerland, United States, Canada, Mexico, Brazil, Chile, Australia and South Africa, and 18 global sales offices in China (2) ,United Kingdom, Bulgaria, Greece, Romania, United Arab Emirates, Jordan, Saudi Arabia, Kuwait, Egypt, Morocco, Ghana, Kenya, Costa Rica, Colombia, Brazil and Mexico.
To find out more, please see: www.jinkosolar.com
Use of Non-GAAP Financial Measures
To supplement its consolidated financial results presented in accordance with United States Generally Accepted Accounting Principles ("GAAP"), JinkoSolar uses certain non-GAAP financial measures including, non-GAAP net income , non-GAAP earnings per Share, non-GAAP earnings per ADS, and non-GAAP diluted weighted average ordinary shares outstanding, which are adjusted from the comparable GAAP results to exclude certain expenses or incremental ordinary shares relating to share-based compensation, convertible senior notes and capped call options:
The Company believes that the use of non-GAAP information is useful for analysts and investors to evaluate JinkoSolar's current and future performances based on a more meaningful comparison of net income and diluted net income per ADS when compared with its peers and historical results from prior periods. These measures are not intended to represent or substitute numbers as measured under GAAP. The submission of non-GAAP numbers is voluntary and should be reviewed together with GAAP results.
Currency Convenience Translation
The conversion of Renminbi into U.S. dollars in this release, made solely for the convenience of the readers, is based on the noon buying rate in the city of New York for cable transfers of Renminbi as certified for customs purposes by the Federal Reserve Bank of New York as of December 30, 2016, which was RMB6.9430 to US$1.00. No representation is intended to imply that the Renminbi amounts could have been, or could be, converted, realized, or settled into U.S. dollars at that rate or any other rate. The percentages stated in this press release are calculated based on Renminbi.
Safe-Harbor Statement
This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends, "plans," "believes," "estimates" and similar statements. Among other things, the quotations from management in this press release and the Company's operations and business outlook, contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in JinkoSolar's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. Except as required by law, the Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
For investor and media inquiries, please contact:
In China:
Sebastian Liu
JinkoSolar Holding Co., Ltd.
Tel: +86 21-5183-3056
Email: ir@jinkosolar.com
Christian Arnell
Christensen
Tel: +86-10-5900-2940
Email: carnell@christensenir.com
In the U.S.:
Ms. Linda Bergkamp
Christensen
Tel: +1-480-614-3004
Email: lbergkamp@ChristensenIR.com
JINKOSOLAR HOLDING CO., LTD. |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||
(in thousands, except ADS and Share data) |
|||||
2015 |
2016 |
||||
Continuing operations |
RMB |
RMB |
USD |
||
Revenues from third parties |
15,454,374 |
21,262,113 |
3,062,381 |
||
Revenues from related parties |
- |
138,525 |
19,952 |
||
Total revenues |
15,454,374 |
21,400,638 |
3,082,333 |
||
Cost of revenues |
(12,522,914) |
(17,531,299) |
(2,525,032) |
||
Gross profit |
2,931,460 |
3,869,339 |
557,301 |
||
Operating expenses: |
|||||
Selling and marketing |
(1,144,559) |
(1,434,039) |
(206,545) |
||
General and administrative |
(521,425) |
(779,567) |
(112,281) |
||
Research and development |
(143,671) |
(181,106) |
(26,085) |
||
Impairment of long-lived assets |
- |
(125,524) |
(18,079) |
||
Total operating expenses |
(1,809,655) |
(2,520,236) |
(362,990) |
||
Income from operations |
1,121,805 |
1,349,103 |
194,311 |
||
Interest expenses, net |
(311,019) |
(359,296) |
(51,749) |
||
Change in fair value of derivative liability |
(2,096) |
24,573 |
3,539 |
||
Subsidy income |
101,874 |
168,647 |
24,290 |
||
Exchange gain/(loss), net |
(86,518) |
208,811 |
30,077 |
||
Change in fair value of forward contracts |
56,562 |
(52,562) |
(7,570) |
||
Change in fair value of convertible senior notes and capped call |
(14,571) |
(110,242) |
(15,878) |
||
Other income, net |
1,036 |
8,768 |
1,263 |
||
Investment income |
- |
4,902 |
706 |
||
Gain on disposal of subsidiaries |
- |
5,018 |
723 |
||
Income from continuing operations before income taxes |
867,073 |
1,247,722 |
179,712 |
||
Income tax expense |
(100,534) |
(257,487) |
(37,086) |
||
Income from continuing operations, net of tax |
766,539 |
990,235 |
142,626 |
||
Discontinued operations |
|||||
Gain on disposal of discontinued operations |
- |
1,007,884 |
145,165 |
||
Income from discontinued operations before income taxes |
105,090 |
48,146 |
6,934 |
||
Income tax expense, net |
(11,330) |
(54,466) |
(7,845) |
||
Income from discontinued operations, net of tax |
93,760 |
1,001,564 |
144,254 |
||
Net income |
860,299 |
1,991,799 |
286,880 |
||
Less: Net loss attributable to non-controlling |
(63) |
(433) |
(62) |
||
Less: Net income attributable to non-controlling |
4,270 |
6,044 |
871 |
||
Less: Accretion to redemption value of redeemable non-controlling |
172,340 |
159,478 |
22,970 |
||
Net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary |
683,752 |
1,826,710 |
263,101 |
||
Earnings/(loss) per share for ordinary shareholders, basic |
|||||
Continuing operations |
6.15 |
7.87 |
1.13 |
||
Discontinued operations |
(0.66) |
6.64 |
0.96 |
||
Total earnings/(loss) per share for ordinary shareholders, basic |
5.49 |
14.51 |
2.09 |
||
Earnings/(loss) per share for ordinary shareholders, diluted |
|||||
Continuing operations |
6.00 |
7.26 |
1.05 |
||
Discontinued operations |
(0.66) |
6.09 |
0.88 |
||
Total earnings/(loss) per share for ordinary shareholders, diluted |
5.34 |
13.35 |
1.93 |
||
Earnings/(loss) per ADS for ordinary shareholders, basic |
|||||
Continuing operations |
24.60 |
31.48 |
4.52 |
||
Discontinued operations |
(2.64) |
26.56 |
3.84 |
||
Total earnings/(loss) per ADS for ordinary shareholders, basic |
21.96 |
58.04 |
8.36 |
||
Earnings/(loss) per ADS for ordinary shareholders, diluted |
|||||
Continuing operations |
24.00 |
29.04 |
4.20 |
||
Discontinued operations |
(2.64) |
24.36 |
3.52 |
||
Total earnings/(loss) per ADS for ordinary shareholders, diluted |
21.36 |
53.40 |
7.72 |
||
Weighted average ordinary shares outstanding: |
|||||
Basic |
124,618,416 |
125,870,272 |
125,870,272 |
||
Diluted |
127,802,961 |
137,328,725 |
137,328,725 |
||
Weighted average ADS outstanding: |
|||||
Basic |
31,154,604 |
31,467,568 |
31,467,568 |
||
Diluted |
31,950,740 |
34,332,181 |
34,332,181 |
||
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
|||||
Net income |
860,299 |
1,991,799 |
286,880 |
||
Other comprehensive (loss)/income: |
|||||
-Unrealized loss on available-for-sale securities |
(413) |
- |
- |
||
-Foreign currency translation adjustments |
1,121 |
92,202 |
13,279 |
||
Comprehensive income |
861,007 |
2,084,001 |
300,159 |
||
Less: comprehensive income attributable to non-controlling interests |
4,207 |
5,611 |
809 |
||
Comprehensive income attributable to JinkoSolar Holding Co., Ltd.'s |
856,800 |
2,078,390 |
299,350 |
||
Reconciliation of GAAP and non-GAAP Results(Excluding discontinued |
|||||
1. Non-GAAP earnings per share and non-GAAP earnings per ADS |
|||||
GAAP net income attributable to ordinary shareholders from continuing |
766,602 |
990,668 |
142,688 |
||
Change in fair value of derivative liability |
2,096 |
(24,573) |
(3,539) |
||
Change in fair value of convertible senior notes and capped call options |
14,571 |
110,242 |
15,878 |
||
4% of interest expense of convertible senior notes |
67,363 |
37,177 |
5,352 |
||
Exchange loss on convertible senior notes and capped call options |
93,874 |
42,713 |
6,152 |
||
Stock-based compensation expense |
112,682 |
89,568 |
12,900 |
||
Non-GAAP net income attributable to ordinary shareholders from |
1,057,188 |
1,245,795 |
179,432 |
||
Non-GAAP earnings per share attributable to ordinary shareholders |
|||||
Basic |
8.48 |
9.90 |
1.43 |
||
Diluted |
8.27 |
9.07 |
1.31 |
||
Non-GAAP earnings per ADS attributable to ordinary shareholders |
|||||
Basic |
33.92 |
39.60 |
5.72 |
||
Diluted |
33.08 |
36.28 |
5.24 |
||
Non-GAAP weighted average ordinary shares outstanding |
|||||
Basic |
124,618,416 |
125,870,272 |
125,870,272 |
||
Diluted |
127,802,961 |
137,328,725 |
137,328,725 |
||
Non-GAAP weighted average ADS outstanding |
|||||
Basic |
31,154,604 |
31,467,568 |
31,467,568 |
||
Diluted |
31,950,740 |
34,332,181 |
34,332,181 |
||
JINKOSOLAR HOLDING CO., LTD. |
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UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||
(in thousands, except ADS and Share data) |
|||||||
For the quarter ended |
|||||||
December 31, 2015 |
September 30, 2016 |
December 31, 2016 |
|||||
Continuing operations |
RMB |
RMB |
RMB |
USD |
|||
Revenues from third parties |
5,937,852 |
5,331,232 |
5,085,938 |
732,527 |
|||
Revenues from related parties |
- |
- |
35,565 |
5,122 |
|||
Total revenues |
5,937,852 |
5,331,232 |
5,121,503 |
737,649 |
|||
Cost of revenues |
(4,808,049) |
(4,305,166) |
(4,391,518) |
(632,510) |
|||
Gross profit |
1,129,803 |
1,026,066 |
729,985 |
105,139 |
|||
Operating expenses: |
|||||||
Selling and marketing |
(366,232) |
(371,669) |
(350,662) |
(50,506) |
|||
General and administrative |
(258,600) |
(175,414) |
(221,810) |
(31,947) |
|||
Research and development |
(39,040) |
(41,864) |
(57,231) |
(8,243) |
|||
Impairment of long-lived assets |
- |
(3,819) |
(22,377) |
(3,223) |
|||
Total operating expenses |
(663,872) |
(592,766) |
(652,080) |
(93,919) |
|||
Income from operations |
465,931 |
433,300 |
77,905 |
11,220 |
|||
Interest expenses, net |
(87,907) |
(132,859) |
(74,538) |
(10,736) |
|||
Change in fair value of derivative liability |
436 |
36,048 |
(10,364) |
(1,493) |
|||
Subsidy income |
54,264 |
12,809 |
81,222 |
11,698 |
|||
Exchange gain |
80,042 |
2,602 |
17,674 |
2,547 |
|||
Change in fair value of forward contracts |
9,774 |
(9,752) |
19 |
3 |
|||
Change in fair value of convertible senior |
(45,301) |
(15,684) |
(14,712) |
(2,119) |
|||
Other income/(expense), net |
1,053 |
(291) |
9,437 |
1,359 |
|||
Investment income |
- |
1,731 |
4,812 |
693 |
|||
Gain on disposal of subsidiaries |
- |
- |
5,018 |
723 |
|||
Income from continuing operations before income taxes |
478,292 |
327,904 |
96,473 |
13,895 |
|||
Income tax (expense)/benefit |
(48,620) |
(115,973) |
49,200 |
7,086 |
|||
Income from continuing operations, net of tax |
429,672 |
211,931 |
145,673 |
20,981 |
|||
Discontinued operations |
|||||||
Gain on disposal of discontinued operations |
- |
- |
1,007,884 |
145,165 |
|||
(Loss)/income from discontinued operations before income taxes |
(23,559) |
83,083 |
(97,396) |
(14,028) |
|||
Income tax expense, net |
(10,973) |
(830) |
(53,020) |
(7,636) |
|||
(Loss)/income from discontinued operations, net of tax |
(34,532) |
82,253 |
857,468 |
123,501 |
|||
Net income |
395,140 |
294,184 |
1,003,141 |
144,482 |
|||
Less: Net loss attributable to non-controlling |
(62) |
(221) |
(123) |
(19) |
|||
Less: Net income attributable to non-controlling |
916 |
1,561 |
761 |
110 |
|||
Less: Allocation of net income to participating preferred shares issued |
- |
10,247 |
(13,895) |
(2,001) |
|||
Less: Accretion to redemption value of redeemable non-controlling |
44,934 |
48,922 |
16,776 |
2,416 |
|||
Net income attributable to JinkoSolar Holding Co., Ltd.'s |
349,352 |
233,675 |
999,622 |
143,976 |
|||
Earnings/(loss) per share for ordinary shareholders, basic |
|||||||
Continuing operations |
3.44 |
1.68 |
1.15 |
0.17 |
|||
Discontinued operations |
(0.64) |
0.17 |
6.75 |
0.97 |
|||
Total earnings/(loss) per share for ordinary shareholders, basic |
2.80 |
1.85 |
7.90 |
1.14 |
|||
Earnings/(loss) per share for ordinary shareholders, diluted |
|||||||
Continuing operations |
3.36 |
1.35 |
1.14 |
0.16 |
|||
Discontinued operations |
(0.64) |
0.16 |
6.68 |
0.96 |
|||
Total earnings/(loss) per share for ordinary shareholders, diluted |
2.72 |
1.51 |
7.82 |
1.12 |
|||
Earnings/(loss) per ADS for ordinary shareholders, basic |
|||||||
Continuing operations |
13.76 |
6.72 |
4.60 |
0.68 |
|||
Discontinued operations |
(2.56) |
0.68 |
27.00 |
3.88 |
|||
Total earnings/(loss) per ADS for ordinary shareholders, basic |
11.20 |
7.40 |
31.60 |
4.56 |
|||
Earnings/(loss) per ADS for ordinary shareholders, diluted |
|||||||
Continuing operations |
13.44 |
5.40 |
4.56 |
0.64 |
|||
Discontinued operations |
(2.56) |
0.64 |
26.72 |
3.84 |
|||
Total earnings/(loss) per ADS for ordinary shareholders, diluted |
10.88 |
6.04 |
31.28 |
4.48 |
|||
Weighted average ordinary shares outstanding: |
|||||||
Basic |
124,922,950 |
126,056,129 |
126,412,714 |
126,412,714 |
|||
Diluted |
128,057,418 |
130,613,442 |
127,872,331 |
127,872,331 |
|||
Weighted average ADS outstanding: |
|||||||
Basic |
31,230,738 |
31,514,032 |
31,603,178 |
31,603,178 |
|||
Diluted |
32,014,354 |
32,653,360 |
31,968,083 |
31,968,083 |
|||
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
|||||||
Net income |
395,140 |
294,184 |
1,003,141 |
144,482 |
|||
Other comprehensive income: |
|||||||
-Unrealized loss on available-for-sale securities |
(1,078) |
- |
- |
- |
|||
-Foreign currency translation adjustments |
(7,397) |
(3,409) |
108,078 |
15,566 |
|||
Comprehensive income |
386,665 |
290,775 |
1,111,219 |
160,048 |
|||
Less: Comprehensive income attributable to non-controlling interests |
854 |
1,340 |
638 |
91 |
|||
Less:Allocation of net income to participating preferred shares issued |
- |
10,247 |
(13,895) |
(2,001) |
|||
Comprehensive income attributable to JinkoSolar Holding Co., Ltd.'s |
385,811 |
279,188 |
1,124,476 |
161,958 |
|||
Reconciliation of GAAP and non-Gaap Results(Excluding discontinued operations) |
|||||||
1. Non-GAAP earnings per share and non-GAAP earnings per ADS |
|||||||
GAAP net income attributable to ordinary shareholders from |
429,734 |
212,152 |
145,796 |
21,000 |
|||
Change in fair value of derivative liability |
(436) |
(36,048) |
10,364 |
1,493 |
|||
Change in fair value of convertible senior notes and capped call |
45,301 |
15,684 |
14,712 |
2,119 |
|||
4% of interest expense of convertible senior notes |
16,946 |
8,007 |
5,180 |
746 |
|||
Exchange loss on convertible senior notes and capped call |
30,251 |
5,958 |
18,536 |
2,670 |
|||
Stock-based compensation expense |
17,139 |
29,558 |
33,987 |
4,895 |
|||
Non-GAAP net income attributable to ordinary shareholders |
538,935 |
235,311 |
228,575 |
32,923 |
|||
Non-GAAP earnings per share attributable to ordinary |
|||||||
Basic |
4.31 |
1.87 |
1.81 |
0.26 |
|||
Diluted |
4.21 |
1.80 |
1.79 |
0.26 |
|||
Non-GAAP earnings per ADS attributable to ordinary |
|||||||
Basic |
17.24 |
7.48 |
7.24 |
1.04 |
|||
Diluted |
16.84 |
7.20 |
7.16 |
1.04 |
|||
Non-GAAP weighted average ordinary shares outstanding |
|||||||
Basic |
124,922,950 |
126,056,129 |
126,412,714 |
126,412,714 |
|||
Diluted |
128,057,418 |
130,613,442 |
127,872,331 |
127,872,331 |
|||
Non-GAAP weighted average ADS outstanding |
|||||||
Basic |
31,230,738 |
31,514,032 |
31,603,178 |
31,603,178 |
|||
Diluted |
32,014,354 |
32,653,360 |
31,968,083 |
31,968,083 |
|||
JINKOSOLAR HOLDING CO., LTD. |
|||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(in thousands) |
|||||
December 31, 2015 |
December 31, 2016 |
||||
RMB |
RMB |
USD |
|||
ASSETS |
|||||
Current assets: |
|||||
Cash and cash equivalents |
2,392,591 |
2,501,417 |
360,279 |
||
Restricted cash |
555,724 |
318,785 |
45,915 |
||
Restricted short-term investments |
1,160,518 |
3,333,450 |
480,117 |
||
Short-term investments |
29,427 |
71,301 |
10,269 |
||
Accounts receivable, net - related parties |
60,974 |
1,414,084 |
203,670 |
||
Accounts receivable, net - third parties |
2,690,519 |
4,753,715 |
684,677 |
||
Notes receivable, net - related parties |
- |
610,200 |
87,887 |
||
Notes receivable, net - third parties |
515,442 |
915,315 |
131,833 |
||
Advances to suppliers, net - related parties |
1,021 |
662 |
95 |
||
Advances to suppliers, net - third parties |
251,390 |
325,766 |
46,920 |
||
Inventories, net |
3,203,325 |
4,473,515 |
644,320 |
||
Forward contract receivables |
7,039 |
641 |
92 |
||
Deferred tax assets - current |
79,101 |
130,676 |
18,821 |
||
Other receivables - related parties |
- |
79,125 |
11,396 |
||
Capped Call options |
17,490 |
- |
- |
||
Prepayments and other current assets |
715,449 |
766,645 |
110,420 |
||
Held-for-sale assets |
10,814,795 |
- |
- |
||
Total current assets |
22,494,805 |
19,695,297 |
2,836,711 |
||
Non-current assets: |
|||||
Restricted cash |
160,218 |
197,214 |
28,405 |
||
Project Assets |
- |
55,063 |
7,931 |
||
Long-term investments |
7,200 |
7,200 |
1,037 |
||
Property, plant and equipment, net |
3,766,436 |
4,738,681 |
682,512 |
||
Land use rights, net |
349,914 |
450,941 |
64,949 |
||
Intangible assets, net |
20,472 |
20,297 |
2,923 |
||
Deferred tax assets - non current |
117,803 |
134,791 |
19,414 |
||
Other assets - related parties |
- |
173,376 |
24,971 |
||
Other assets - third parties |
227,701 |
617,780 |
88,979 |
||
Total non-current assets |
4,649,744 |
6,395,343 |
921,121 |
||
Total assets |
27,144,549 |
26,090,640 |
3,757,832 |
||
LIABILITIES |
|||||
Current liabilities: |
|||||
Accounts payable - related parties |
1,479 |
- |
- |
||
Accounts payable - third parties |
3,783,305 |
4,290,071 |
617,899 |
||
Notes payable - third parties |
1,924,496 |
5,006,366 |
721,067 |
||
Accrued payroll and welfare expenses |
454,211 |
582,276 |
83,865 |
||
Advances from related parties |
- |
60,541 |
8,720 |
||
Advances from third parties |
1,299,491 |
1,376,919 |
198,318 |
||
Income tax payable |
106,002 |
168,112 |
24,213 |
||
Other payables and accruals |
898,173 |
1,019,419 |
146,824 |
||
Other payables due to related parties |
4,993 |
76,034 |
10,951 |
||
Forward contract payables |
4,296 |
- |
- |
||
Convertible senior notes - current |
650,917 |
423,740 |
61,031 |
||
Deferred tax liabilities - current |
9,266 |
17,074 |
2,459 |
||
Derivative liability - current |
- |
10,364 |
1,493 |
||
Bonds payable and accrued interests |
866,726 |
- |
- |
||
Short-term borrowings from third parties, |
2,589,864 |
5,279,029 |
760,338 |
||
Guarantee liabilities to related parties |
- |
52,711 |
7,592 |
||
Held-for-sale liabilities |
6,029,223 |
- |
- |
||
Total current liabilities |
18,622,442 |
18,362,656 |
2,644,770 |
||
Non-current liabilities: |
|||||
Long-term borrowings |
1,308,680 |
488,520 |
70,362 |
||
Long-term payables |
- |
44,015 |
6,340 |
||
Accrued warranty costs - non current |
329,237 |
511,209 |
73,629 |
||
Convertible senior notes |
856,064 |
- |
- |
||
Deferred tax liability - non current |
25 |
50,651 |
7,295 |
||
Derivative liability - non current |
68,378 |
- |
- |
||
Guarantee liabilities to related parties - non current |
- |
173,376 |
24,971 |
||
Total non-current liabilities |
2,562,384 |
1,267,771 |
182,597 |
||
Total liabilities |
21,184,826 |
19,630,427 |
2,827,367 |
||
Redeemable non-controlling interests |
1,607,926 |
- |
- |
||
SHAREHOLDERS' EQUITY |
|||||
Ordinary shares (US$0.00002 par value, |
18 |
18 |
3 |
||
Additional paid-in capital |
2,924,336 |
3,145,262 |
453,012 |
||
Statutory reserves |
351,763 |
466,253 |
67,154 |
||
Accumulated other comprehensive income |
12,582 |
104,784 |
15,092 |
||
Treasury stock, at cost; 1,723,200 shares of |
(13,876) |
(13,876) |
(1,999) |
||
Accumulated retained earnings |
1,047,045 |
2,758,268 |
397,273 |
||
Total JinkoSolar Holding Co., Ltd. shareholders' equity |
4,321,868 |
6,460,709 |
930,535 |
||
Non-controlling interests |
29,929 |
(496) |
(70) |
||
Total liabilities and shareholders' equity |
27,144,549 |
26,090,640 |
3,757,832 |
||
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/jinkosolar-announces-fourth-quarter-and-full-year-2016-financial-results-300413807.html
