omniture

JinkoSolar Announces First Quarter 2019 Financial Results

2019-06-28 17:04 15220

SHANGHAI, June 28, 2019 /PRNewswire-FirstCall/ -- JinkoSolar Holding Co., Ltd. ("JinkoSolar" or the "Company") (NYSE: JKS), one of the largest and most innovative solar module manufacturers in the world, today announced its unaudited financial results for the first quarter ended March 31, 2019.

First Quarter 2019 Highlights

  • Total solar module shipments were 3,037 megawatts ("MW"), a decrease of 16.1% from 3,618 (including intragroup solar module shipments) MW in the fourth quarter of 2018 and an increase of 50.7% from 2,015 MW in the first quarter of 2018.
  • Total revenues were RMB 5.82 billion (US$867.5 million), a decrease of 24.6% from the fourth quarter of 2018 and an increase of 27.5% from the first quarter of 2018.
  • Gross margin was 16.6%, compared with 14.7% in the fourth quarter of 2018, and 14.4% in the first quarter of 2018.
  • Income from operations was RMB235.7 million (US$35.1 million), compared with RMB237.4 million in the fourth quarter of 2018 and RMB125.0 million in the first quarter of 2018.
  • Net income attributable to the Company's ordinary shareholders was RMB40.2 million (US$6.0 million) in the first quarter of 2019, compared with RMB114.8 million in the fourth quarter of 2018 and RMB3.6 million in the first quarter of 2018.
  • Diluted earnings per American depositary share ("ADS") were RMB1.016 (US$0.152) in the first quarter of 2019.
  • Non-GAAP net income attributable to the Company's ordinary shareholders in the first quarter of 2019 was RMB33.3 million (US$5.0 million), compared with RMB111.8 million in the fourth quarter of 2018 and RMB11.0 million in the first quarter of 2018.
  • Non-GAAP basic and diluted earnings per ADS were RMB0.848 (US$0.128) and RMB0.840 (US$0.124) in the first quarter of 2019, compared with RMB2.852 and RMB2.852 in the fourth quarter of 2018 and RMB0.300 and RMB0.296 in the first quarter of 2018, respectively.

Mr. Kangping Chen, JinkoSolar's Chief Executive Officer commented, "We started the year strongly as we continue diversifying our global distribution network and expanding our market share in key overseas markets. Module shipments during the first quarter were 3,037 megawatts, an increase of 50.7% year-over-year and a decrease of 16.1% sequentially. Our gross margin was 16.6%, up from 14.7% sequentially and 14.4% year-over-year as we increasingly benefit from a higher proportion of sales being generated by our self-produced high efficiency mono products and further reductions in production cost."

"We continue to see strong demand from overseas markets and have secured the vast majority of our order book for the rest of the year. The global solar market continues to generate rapid and sustainable growth momentum as grid parity approaches, in particular for our high-efficiency mono products which are continuously in short supply. Our global distribution network allowed us to quickly meet growing demand for our high-efficiency mono products over the past few quarters as the market transitioned. We are accelerating the expansion of our high-efficiency mono production capacity and estimate they will account for over 60% of our total shipments for the year."

"On the domestic front, policies recently laid out by China's National Energy Administration are expected to create a strong demand during the second half of the year. China is expected to install 40 GW this year. European markets continue to perform very well following the cancellation of the minimum import price policy, resulting in a surge in demand from price-sensitive projects. We expect European installations to hit 17 GW this year. In the U.S., recent policy changes exempting bifacial solar modules from Section 201 tariffs are expected to further accelerate medium and long-term demand and significantly increase the application of bifacial modules. The U.S. is expected to install 12 GW to 15 GW this year."

"We successfully raised US$160 million last month in a follow-on offering of ADSs and concurrent private placement of convertible senior notes, which is being deployed to expand our mono wafer and PERC cell capacities. Our new 5 GW mono wafer production facility in Leshan, Sichuan Province began trial production this month and will ramp up to full capacity by the fourth quarter of this year. This new production facility will serve as a benchmark for the industry with its cutting-edge technology and industry-leading cost structure. The additional mono wafer capacity will allow us to significantly increase the proportion of self-produced high-efficiency products and improve overall profitability."

"This year, we also launched the latest addition to our premium Cheetah products, the "Swan" bifacial module with a new DuPont Clear DuPont™ Tedlar®-based backsheet. This module uses lightweight materials, which alleviate a number of problems during the installation process and lower cost per kilowatt hour of electricity produced for our customers. We believe that demand for bifacial transparent backsheet products will grow rapidly as they become more mainstream going forward."

"I am pleased with the progress we made during the quarter in reinforcing our competitive strengths and favorably positioning ourselves for the future. We will continue to expand our market share in China and overseas, ramp up production of high-efficiency mono products and leverage our strong brand recognition and reputation for quality to meet global demand."

First Quarter 2019 Financial Results

Total Revenues

Total revenues in the first quarter of 2019 were RMB5.82 billion (US$867.5 million), a decrease of 24.6% from RMB7.72 billion in the fourth quarter of 2018 and an increase of 27.5% from RMB4.57 billion in the first quarter of 2018. The sequential decrease was mainly attributable to a decrease in the shipment of solar modules in the first quarter of 2019. The year-over-year increase was mainly attributable to an increase in the shipment of solar modules, which was partially offset by a decline in the average selling price of solar modules in the first quarter of 2019.

Gross Profit and Gross Margin

Gross profit in the first quarter of 2019 was RMB964.3 million (US$143.7 million), compared with RMB1.13 billion in the fourth quarter of 2018 and RMB656.1 million in the first quarter of 2018. The sequential decrease was mainly attributable to a decrease in the shipment of solar modules in the first quarter of 2019. The year-over-year increase was mainly attributable to (i) an increase in the shipment of solar modules in the first quarter of 2019, and (ii) a decrease of solar module cost in the first quarter of 2019. The year-over-year increase was partially offset by a decline in the average selling price of solar modules in the first quarter of 2019.

Gross margin was 16.6% in the first quarter of 2019, compared with 14.7% in the fourth quarter of 2018 and 14.4% in the first quarter of 2018. The sequential increase was attributable to a higher proportion of self-produced high-efficiency mono products and further reductions in production cost in the first quarter of 2019. The year-over-year increase was mainly attributable to a decrease in solar module cost in the first quarter of 2019, which was partially offset by a decline in the average selling price of solar modules in the first quarter of 2019.

Income from Operations and Operating Margin

Income from operations in the first quarter of 2019 was RMB235.7 million (US$35.1 million), compared with RMB237.4 million in the fourth quarter of 2018 and RMB125.0 million in the first quarter of 2018. Operating margin in the first quarter of 2019 was 4.0%, compared with 3.1% in the fourth quarter of 2018 and 2.7% in the first quarter of 2018.

Total operating expenses in the first quarter of 2019 were RMB728.6 million (US$108.6 million), a decrease of 18.6% from RMB895.1 million in the fourth quarter of 2018 and an increase of 37.2% from RMB531.1 million in the first quarter of 2018. The sequential decease was mainly due to a decrease in shipping costs associated with a decrease in solar module shipments in the first quarter of 2019. The year-over-year increase was primarily due to an increase in shipping costs in the first quarter of 2019.

Total operating expenses accounted for 12.5% of total revenues in the first quarter of 2019, compared to 11.6% in the fourth quarter of 2018 and 11.6% in the first quarter of 2018. The sequential increase of operating expense as a percentage of total revenue was primarily due to the increase of shipping costs as a percentage of total revenue associated with a significant higher percentage of shipments to overseas markets in the first quarter of 2019.

Interest Expense, Net

Net interest expense in the first quarter of 2019 was RMB96.1 million (US$14.3 million), an increase of 29.8% from RMB74.0 million in the fourth quarter of 2018 and an increase of 12.5% from RMB85.4 million in the first quarter of 2018. The sequential increase was mainly due to (i) an increase in borrowings, and (ii) an increase in interest expense associated with discounted notes receivable. The year-over-year increase was mainly due to (i) an increase in borrowings and (ii) the cessation of interest capitalization on certain completed solar projects.

Exchange Loss and Change in Fair Value of Foreign Exchange Derivatives

The Company recorded a net exchange loss (including Change in fair value of foreign exchange derivatives) of RMB62.9 million (US$9.4 million) in the first quarter of 2019, compared to a net exchange loss of RMB35.1 million in the fourth quarter of 2018 and a net exchange loss of RMB90.8 million in the first quarter of 2018. The Company bought foreign exchange forward contracts and foreign exchange options from several banks for the purpose of reducing exchange rate risk exposure. The sequential change was primarily due to the depreciation of the US dollar against the RMB in the first quarter of 2019.

Change in Fair Value of Interest Rate Swap

The Company entered into Interest Rate Swap agreements with several banks for the purpose of reducing interest rate risk exposure associated with the Company's overseas solar power projects. The Company recorded a loss arising from change in fair value of interest rate swap of RMB30.2 million (US$4.5 million) in the first quarter of 2019, compared to a loss of RMB38.5 million in the fourth quarter of 2018. The loss arising from change in fair value of interest swap was primarily due to a continuous decrease in the long-term interest rates. The Company did not elect to use hedge accounting for any of its derivatives.

Equity in Loss of Affiliated Companies

The Company indirectly holds a 20% equity interest in Sweihan PV Power Company P.J.S.C, a developer and operator of solar power projects in Dubai, and accounts for its investment using the equity method. The Company also holds a 30% equity interest in Jiangsu Jinko-Tiansheng Co., Ltd, which processes and assembles PV modules as an OEM manufacturer, and accounts for its investments using the equity method. The Company recorded equity in loss of affiliated companies of RMB23.7 million (US$3.5 million) in the first quarter of 2019, compared with a loss of RMB25.1 million in the fourth quarter of 2018 and a loss of RMB5.2 million in the first quarter of 2018. The loss was primarily arising from change in fair value of interest rate swap agreements purchased by Sweihan PV Power Company P.J.S.C due to a continuous decrease in the long-term interest rates. Hedge accounting was not applied for the derivative.

Income Tax Benefit, Net

The Company recorded an income tax benefit of RMB4.3 million (US$0.6 million) in the first quarter of 2019, compared with an income tax benefit of RMB43.5 million in the fourth quarter of 2018 and an income tax benefit  of RMB3.3 million in the first quarter of 2018. 

The Company recorded an out-of-period adjustment of RMB4.1 million (US$0.6 million) in the first quarter of 2019 resulting from income tax expense for one of its foreign entities, which should have been recorded in 2018. Neither the originating amount in 2018 nor the out-of-period adjustment amount recorded in 2019 was material to the Company's consolidated financial statements for the respective periods.

Net Income and Earnings per Share

Net income attributable to the Company's ordinary shareholders was RMB40.2 million (US$6.0 million) in the first quarter of 2019, compared with RMB114.8 million in the fourth quarter of 2018 and RMB3.6 million in the first quarter of 2018.

Basic and diluted earnings per ordinary share were RMB0.256 (US$0.038) and RMB0.254 (US$0.038), respectively, during the first quarter of 2019. This translates into basic and diluted earnings per ADS of RMB1.024 (US$0.152) and RMB1.016 (US$0.152), respectively.

Non-GAAP net income attributable to the Company's ordinary shareholders in the first quarter of 2019 was RMB33.3 million (US$5.0 million), compared with RMB111.8 million in the fourth quarter of 2018 and RMB11.0 million in the first quarter of 2018.

Non-GAAP basic and diluted earnings per ordinary share were of RMB0.212 (US$0.032) and RMB0.210 (US$0.031), respectively, during the first quarter of 2019. This translates into non-GAAP basic and diluted earnings per ADS of RMB0.848 (US$0.128) and RMB0.840 (US$0.124), respectively.

Financial Position

As of March 31, 2019, the Company had RMB4.36 billion (US$649.8 million) in cash and cash equivalents and restricted cash, compared with RMB3.48 billion as of December 31, 2018.

As of March 31, 2019, the Company's accounts receivables due from third parties were RMB5.20 billion (US$774.2 million), compared with RMB5.44 billion as of December 31, 2018.

As of March 31, 2019, the Company's inventories were RMB6.48 billion (US$965.6 million), compared with RMB5.74 billion as of December 31, 2018.

As of March 31, 2019, the Company's total interest-bearing debts were RMB12.04 billion (US$1.79 billion), compared with RMB9.71 billion as of December 31, 2018. The increase of interest-bearing debts was mainly due to (i) an increasing in short-term borrowings for working capital purpose and (ii) an increase in long-term borrowings for capital expenditure.

First Quarter 2019 Operational Highlights

Solar Module Shipments

Total solar module shipments in the first quarter of 2019 were 3,037 MW.

Solar Products Production Capacity

As of March 31, 2019, the Company's in-house annual silicon wafer, solar cell and solar module production capacity was 10.5 GW (including 6.5 GW of mono wafers), 7.0 GW (including 5.4 GW of PERC cells) and 11.0 GW, respectively.

JinkoSolar expects its annual silicon wafer, solar cell and solar module production capacity to reach 15.0 GW (including 11.5 GW of mono wafers), 10.0 GW (including 9.2 GW of PERC cells) and 16.0 GW, respectively, by the end of 2019.

Recent Business Developments

  • In January 2019, JinkoSolar renewed its partnership with GRID Alternatives, a national leader in making solar technology and job training accessible to low-income communities.
  • In January 2019, JinkoSolar was awarded the "Top Brand PV Europe Seal 2019" award by EuPD Research for the first time in its corporate history.
  • In January 2019, JinkoSolar products underwent LeTID testing by Wind Power Systems Quality Test Center, IEE, and CAS.
  • In February 2019, JinkoSolar held the opening ceremony for its new state-of-the-art solar panel manufacturing facility at 4660 POW-MIA Memorial Parkway, Jacksonville, Florida.
  • In February 2019, JinkoSolar promoted Mr. Gener Miao, the Company's then Vice President for Global Sales and Marketing, to Chief Marketing Officer.
  • In March 2019, JinkoSolar promoted Mr. Zhiqun Xu to Chief Operating Officer.
  • In April 2019, JinkoSolar won the 5th All Quality Matters Award for PV Module Energy Yield Simulation (Mono Group) at the Solar Congress 2019 organized by TÜV Rheinland.
  • In April 2019, JinkoSolar supplied 100MW of high efficient solar modules for the Srepok 1 and Quang Minh Solar Power Plant Complex, one of the Vietnam's largest solar power projects up to April 24, 2019.
  • In April 2019, JinkoSolar expanded its high efficiency mono wafer production capacity with the construction of a new greenfield 5 GW mono wafer production facility in Leshan, Sichuan Province, China.
  • In April 2019, JinkoSolar secured over 10.7 GW in orders for 2019.
  • In May 2019, JinkoSolar supplied 250,000 pieces of 345Watt - 1500V monocrystalline standard modules for one of the largest solar power plants in Colombia which was then inaugurated and is located in Cesar Department.
  • In May 2019, JinkoSolar officially launched the latest addition to the Company's range of premium Cheetah products, the "Swan" bifacial module with new DuPont Clear DuPont™ Tedlar®-based backsheet at Intersolar Europe 2019.
  • In May 2019, JinkoSolar won the Intersolar Award 2019 in the Photovoltaics category for its Swan bifacial module with transparent backsheet from DuPont.
  • In May 2019, JinkoSolar closed the follow-on equity offering of 4,671,875 ADSs, each representing four ordinary shares of the Company, par value US$0.00002 per share, at US$16.00 per ADS, and the concurrent private placement of US$85 million convertible senior notes due 2024.
  • In June 2019, JinkoSolar announced that the maximum conversion efficiency of its cheetah size cells and N-type cells reached 24.38% and 24.58%, respectively. Additionally, power generated by JinkoSolar's 72 version high efficiency monocrystalline module (cell: 158.75*158.75) reached 469.3W. JinkoSolar has made significant breakthroughs in the field of high efficiency and high power of cells and modules, setting a new industry standard for peak performance.
  • In June 2019, JinkoSolar ranked as a Top Performer for the 5thconsecutive year in the 2019 PV Module Reliability Scorecard, published by PVEL in partnership with DNV GL.
  • In June 2019, JinkoSolar launched seven hero products at 2019 SNEC Shanghai, including Cheetah high efficiency series and Swan bifacial series, leading the industry into a new era featuring high-efficiency Mono for grid parity.
  • In June 2019, JinkoSolar supplied Trung Nam Group with 258MW of monocrystalline PERC double glass modules which were installed at one of the largest solar-wind hybrid projects in Vietnam.
  • In June 2019, JinkoSolar supplied Power Construction Corporation of China with 351MW of solar modules which were installed at the Hồng Phong solar PV plant in Vietnam, one of the largest PV projects in the Asia Pacific region

Operations and Business Outlook

Second Quarter and Full Year 2019 Guidance

For the second quarter of 2019, the Company estimates total solar module shipments to be in the range of 3.2 GW to 3.3 GW. 

For the full year 2019, the Company estimates total solar module shipments to be in the range of 14.0 GW to 15.0GW.

Conference Call Information

JinkoSolar's management will host an earnings conference call on Friday, June 28, 2019 at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong the same day).

Dial-in details for the earnings conference call are as follows:

Hong Kong / International:

+852 3027 6500

U.S. Toll Free:

+1 855-824-5644

Passcode:

33159306#

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, July 5, 2019. The dial-in details for the replay are as follows:

International:

+61 2 8325 2405

U.S.:

+1 646 982 0473

Passcode:

319318918#

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

About JinkoSolar Holding Co., Ltd.

JinkoSolar (NYSE: JKS) is one of the largest and most innovative solar module manufacturers in the world. JinkoSolar distributes its solar products and sells its solutions and services to a diversified international utility, commercial and residential customer base in China, the United States, Japan, Germany, the United Kingdom, Chile, South Africa, India, Mexico, Brazil, the United Arab Emirates, Italy, Spain, France, Belgium, and other countries and regions. JinkoSolar has built a vertically integrated solar product value chain, with an integrated annual capacity of 10.5 GW for silicon wafers, 7.0 GW for solar cells, and 11.0 GW for solar modules, as of March 31, 2019.

JinkoSolar has over 13,500 employees across its 7 productions facilities globally, 15 oversea subsidiaries in Japan, Korea, Singapore, India, Turkey, Germany, Italy, Switzerland, United States, Canada, Mexico, Brazil, Chile, Australia and United Arab Emirates, and global sales teams in China, United Kingdom, France, Netherlands, Spain, Bulgaria, Greece, Romania, Ukraine, Jordan, Saudi Arabia, Tunisia, Egypt, Morocco, Nigeria, Kenya, South Africa, Costa Rica, Colombia, Panama and Argentina.

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

Use of Non-GAAP Financial Measures

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

  • Non-GAAP net income is adjusted to exclude the expenses relating to interest expenses of convertible senior notes, exchange gain on the convertible senior notes, and stock-based compensation; given these Non-GAAP net income adjustments above are either related to the Company or its subsidiaries incorporated in Cayman Islands, which are not subject to tax exposures, or related to those subsidiaries with tax loss positions which result in no tax impacts, therefore no tax adjustment is needed in conjunction with these Non-GAAP net income adjustments; and
  • Non-GAAP earnings per Share and non-GAAP earnings per ADS are adjusted to exclude interest expenses of convertible senior notes and exchange gain on the convertible senior notes, and stock-based compensation.

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.

Impact of the Recently Adopted Major Accounting Pronouncement

The Company adopted ASU No. 2016-02 and ASU No.2018-11, "Leases" beginning January 1, 2019 and elected to utilize the additional transition method which allowed the Company to initially apply the new lease standard at the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings of 2019, with no adjustments to prior periods presented. No cumulative effect adjustment to the opening balance of retained earnings was required. Upon adoption of ASC 842 on January 1, 2019, the Company recognized right of use assets as well as lease liabilities of RMB269 million for operating leases. For financing leases existed before the adoption date, the Company reclassified leased assets from property, plant and equipment to right of use assets with the amount of RMB748 million, and related financing lease obligations with the amount of RMB338 million recorded in long-term payables and RMB 287 million recorded in other payables and accruals were reclassified to leased liabilities. The adoption of the new guidance did not have a material effect on our results of operations, financial condition or liquidity.

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 March 29, 2019, which was RMB6.7112 to US$1.00. No representation is intended to imply that the Renminbi amounts could have been, or could be, converted, realized, or settled into U.S. dollars at that rate or any other rate. The percentages stated in this press release are calculated based on Renminbi.

Safe-Harbor Statement

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

For investor and media inquiries, please contact:

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

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

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

 

 

JINKOSOLAR HOLDING CO., LTD. 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except ADS and Share data)


For the quarter ended


March 31, 2018


December 31, 2018


March 31, 2019

 Continuing operations 

RMB


RMB


RMB


USD

 Revenues from third parties 

3,671,345


7,695,214


5,677,227


845,933









 Revenues from related parties 

895,491


25,118


144,821


21,580









 Total revenues 

4,566,836


7,720,332


5,822,048


867,513









 Cost of revenues 

(3,910,775)


(6,587,907)


(4,857,711)


(723,822)









 Gross profit 

656,061


1,132,425


964,337


143,691









 Operating expenses: 








   Selling and marketing 

(313,897)


(551,658)


(459,314)


(68,440)

   General and administrative 

(130,831)


(249,221)


(191,902)


(28,594)

   Research and development 

(86,382)


(94,183)


(77,378)


(11,530)

 Total operating expenses 

(531,110)


(895,062)


(728,594)


(108,564)









 Income from operations 

124,951


237,363


235,743


35,127

 Interest expenses, net 

(85,411)


(74,047)


(96,110)


(14,321)

 Subsidy income 

36,581


8,234


4,741


707

 Exchange loss 

(91,413)


(36,006)


(80,980)


(12,066)

 Change in fair value of interest rate swap 

21,104


(38,467)


(30,199)


(4,500)

 Change in fair value of foreign exchange derivatives 

585


950


18,114


2,699

 Other income/(expense), net 

8,678


(2,287)


7,398


1,102

 Loss from disposal of subsidiaries 

(9,425)


-


-


-

 Income before income taxes

5,650


95,740


58,707


8,748

 Income tax benefit 

3,293


43,451


4,250


633

 Equity in loss of affiliated companies 

(5,240)


(25,090)


(23,709)


(3,533)

 Net income 

3,703


114,101


39,248


5,848

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

107


(712)


(939)


(140)

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

3,596


114,813


40,187


5,988









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








   Basic 

0.025


0.732


0.256


0.038

   Diluted 

0.024


0.732


0.254


0.038









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








   Basic 

0.100


2.928


1.024


0.152

   Diluted 

0.096


2.928


1.016


0.152









 Weighted average ordinary shares outstanding: 








   Basic 

145,540,445


156,855,085


156,888,381


156,888,381

   Diluted 

147,793,780


156,859,208


158,017,104


158,017,104









 Weighted average ADS outstanding: 








   Basic 

36,385,111


39,213,771


39,222,095


39,222,095

   Diluted 

36,948,445


39,214,802


39,504,276


39,504,276









UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME









 Net income 

3,703


114,101


39,248


5,848

 Other comprehensive income: 








   -Foreign currency translation adjustments 

(33,351)


3,670


(17,459)


(2,601)

 Comprehensive income 

(29,648)


117,771


21,789


3,247

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

107


(712)


(939)


(140)

 Comprehensive income/(loss) attributable to JinkoSolar
Holding Co., Ltd.'s ordinary shareholders 

(29,755)


118,483


22,728


3,387









 Reconciliation of GAAP and non-GAAP Results 















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
















 GAAP net income attributable to ordinary shareholders 

3,596


114,813


40,187


5,988









 4% of interest expense of convertible senior notes 

1


1


-


-









 Exchange gain on  convertible senior notes and capped
call options 

(2)


-


-


-









 Stock-based compensation (benefit)/expense 

7,376


(3,023)


(6,924)


(1,032)









 Non-GAAP net income attributable to ordinary
shareholders 

10,971


111,791


33,263


4,956









 Non-GAAP earnings per share attributable to ordinary
shareholders - 








   Basic 

0.075


0.713


0.212


0.032

   Diluted 

0.074


0.713


0.210


0.031









 Non-GAAP earnings per ADS attributable to ordinary
shareholders - 








   Basic 

0.300


2.852


0.848


0.128

   Diluted 

0.296


2.852


0.840


0.124









 Non-GAAP weighted average ordinary shares outstanding  








   Basic 

145,540,445


156,855,085


156,888,381


156,888,381

   Diluted 

147,793,780


156,859,208


158,017,104


158,017,104









 Non-GAAP weighted average ADS outstanding  








   Basic 

36,385,111


39,213,771


39,222,095


39,222,095

   Diluted 

36,948,445


39,214,802


39,504,276


39,504,276

 

 

JINKOSOLAR HOLDING CO., LTD. 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)


December 31, 2018


Mar 31, 2019


RMB


RMB


USD

ASSETS






Current assets:






  Cash and cash equivalents

3,104,917


3,259,573


485,692

  Restricted cash 

377,111


1,101,581


164,141

  Restricted short-term investments

4,058,419


5,134,906


765,125

  Accounts receivable, net - related parties

675,768


655,208


97,629

  Accounts receivable, net - third parties

5,436,371


5,195,710


774,185

  Notes receivable, net - third parties

1,010,469


892,087


132,925

  Advances to suppliers, net - third parties

665,221


1,177,212


175,410

  Inventories, net

5,743,328


6,480,031


965,555

  Forward contract receivables

1,192


14,759


2,199

  Other receivables - related parties

67,730


58,448


8,709

  Derviatvie assets

847


861


128

  Prepayments and other current assets

1,712,889


2,206,097


328,718

Total current assets

22,854,262


26,176,473


3,900,416







Non-current assets:






  Restricted cash

921,300


899,202


133,985

  Project Assets

1,770,621


1,895,122


282,382

  Long-term investments

25,531


21,779


3,245

  Property, plant and equipment, net

8,275,900


7,504,897


1,118,265

  Land use rights, net

574,945


572,054


85,239

  Intangible assets, net

35,361


36,690


5,467

  Financing lease right-of-use assets, net*

-


721,563


107,516

  Operating lease right-of-use assets, net*

-


261,416


38,952

  Deferred tax assets 

338,069


331,508


49,396

  Other assets - related parties

144,984


111,600


16,629

  Other assets - third parties

912,210


1,157,980


172,544

Total non-current assets

12,998,921


13,513,811


2,013,620







Total assets

35,853,183


39,690,284


5,914,036







LIABILITIES






Current liabilities:






  Accounts payable - related parties

698


-


-

  Accounts payable - third parties

5,327,094


5,727,409


853,411

  Notes payable - related parties

35,000


38,300


5,707

  Notes payable - third parties

6,036,577


6,562,990


977,916

  Accrued payroll and welfare expenses

810,921


736,710


109,773

  Advances from related parties

910


910


136

  Advances from  third parties

2,395,229


3,059,976


455,951

  Income tax payable

70,240


61,223


9,123

  Other payables and accruals

2,281,025


2,192,538


326,696

  Other payables due to related parties

20,819


22,057


3,287

  Forward contract payables

9,464


2,854


425

  Convertible senior notes - current

69


-


-

  Financing lease liabilities - current*

-


280,004


41,722

  Operating lease liabilities - current*

-


27,679


4,124

  Derivative liability -  current

12,786


42,978


6,404

  Bond payable and accrued interests

10,318


315,846


47,063

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

7,103,399


8,706,748


1,297,346

  Guarantee liabilities to related parties

26,639


27,079


4,035

Total current liabilities

24,141,188


27,805,301


4,143,119







Non-current liabilities:






  Long-term borrowings

1,954,831


2,197,494


327,437

  Long-term payables

338,412


-


-

  Bond payables

299,475


-


-

  Accrued warranty costs - non current

573,641


565,297


84,232

  Financing lease liabilities*

-


275,072


40,987

  Operating lease liabilities*

-


234,261


34,906

  Deferred tax liability

25,893


25,893


3,858

  Long-term liabilities of equtiy investment

-


20,463


3,049

  Guarantee liabilities to related parties 
   - non current

65,765


53,629


7,991

Total non-current liabilities

3,258,017


3,372,109


502,460







Total liabilities

27,399,205


31,177,410


4,645,579







SHAREHOLDERS' EQUITY






Ordinary shares (US$0.00002 par value,
500,000,000 shares authorized, 156,864,737
and 157,364,737 shares issued and
outstanding as of  December 31, 2018 and
March 31, 2019, respectively)

22


22


3

Additional paid-in capital

4,010,740


4,014,847


598,231

Statutory reserves

570,176


570,176


84,959

Accumulated other comprehensive income

70,301


52,842


7,873

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

(13,876)


(13,876)


(2,068)

Accumulated retained earnings

3,202,528


3,242,715


483,180







Total JinkoSolar Holding Co., Ltd. shareholders' equity

7,839,891


7,866,726


1,172,178







Non-controlling interests

614,087


646,148


96,279







Total liabilities and shareholders' equity

35,853,183


39,690,284


5,914,036







Note: *The Company adopted ASU No. 2016-02 and ASU No.2018-11, "Leases" beginning
January 1, 2019 and elected to utilize the additional transition method which allowed the Company
to initially apply the new lease standard at the adoption date and recognize a cumulative effect
adjustment to the opening balance of retained earnings of 2019, with no adjustments to prior
periods presented. No cumulative effect adjustment to the opening balance of retained earnings
was required. Upon adoption of ASC 842 on January 1, 2019, the Company recognized right of
use assets as well as lease liabilities of RMB269 million for operating leases. For financing
leases existed before the adoption date, the Company reclassified leased assets from property,
plant and equipment to right of use assets with the amount of RMB748 million, and related
financing lease obligations with the amount of RMB338 million recorded in long-term payables
and RMB 287 million recorded in other payables and accruals were reclassified to leased liabilities.
The adoption of the new guidance did not have a material effect on our results of operations, financial
condition or liquidity.

 

Cision View original content:http://www.prnewswire.com/news-releases/jinkosolar-announces-first-quarter-2019-financial-results-300877702.html

Source: JinkoSolar Holding Co., Ltd.
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