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JinkoSolar Announces Fourth Quarter and Full Year 2016 Financial Results
[February 27, 2017]

JinkoSolar Announces Fourth Quarter and Full Year 2016 Financial Results

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

  • Total solar module shipments were 1,733 megawatts ("MW"), an increase of 7.9% from 1,606 MW in the third quarter of 2016 and an increase of 1.3% from 1,710 MW in the fourth quarter of 2015.
  • Total revenues were RMB5.12 billion (US$737.6 million), a decrease of 3.9% from the third quarter of 2016 and a decrease of 13.7% from the fourth quarter of 2015. Total revenues including electricity revenue from discontinued operations were RMB5.23 billion (US$753.0 million), a decrease of 8.3% from the third quarter of 2016 and a decrease of 13.9% from the fourth quarter of 2015.
  • Gross margin was 14.3%, compared with 19.2% in the third quarter of 2016 and 19.0% in the fourth quarter of 2015.
  • Income from operations was RMB77.9 million (US$11.2 million), compared with RMB433.3 million in the third quarter of 2016 and RMB465.9 million in the fourth quarter of 2015.
  • Net income attributable to the Company's ordinary shareholders from continuing operations was RMB145.8 million (US$21.0 million) in the fourth quarter of 2016, compared with RMB212.2 million in the third quarter of 2016 and RMB429.7 million in the fourth quarter of 2015.
  • Net income attributable to the Company's ordinary shareholders from continuing and discontinued operations was RMB999.6 million (US$144.0 million), compared with RMB233.7 million in the third quarter of 2016 and RMB349.4 million in the fourth quarter of 2015.
  • Diluted earnings per American depositary share ("ADS") from continuing operations were RMB4.56 (US$0.64).
  • Total diluted earnings per ADS from continuing and discontinued operations were RMB31.28 (US$4.48), compared with RMB6.04 in the third quarter of 2016 and RMB10.88 in the fourth quarter of 2015.
  • Non-GAAP net income attributable to the Company's ordinary shareholders from continuing operations in the fourth quarter of 2016 was RMB228.6 million (US$32.9 million), compared with RMB235.3 million in the third quarter of 2016 and RMB538.9 million in the fourth quarter of 2015.
  • Non-GAAP basic and diluted earnings per ADS from continuing operations were RMB7.24 (US$1.04) and RMB7.16 (US$1.04), respectively, in the fourth quarter of 2016.

Full Year 2016 Highlights

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

  • Total solar module shipments were 6,656 MW, an increase of 47.5% from 4,512 MW for the full year 2015.
  • Total revenues for the full year 2016 were RMB21.40 billion (US$3.08 billion), an increase of 38.5% from RMB15.45 billion for the full year 2015. Total revenues including electricity revenue from discontinued operations were RMB22.35 billion (US$3.22 billion), an increase of 39.0% from RMB16.08 billion for the full year 2015.
  • Gross margin was 18.1% for the full year 2016, compared with 19.0% for the full year 2015.
  • Income from operations was RMB1.35 billion (US$194.3 million), compared with RMB1.12 billion in the full year 2015.
  • Net income attribute to the Company's ordinary shareholders from continuing operations was RMB990.7 million (US$142.7 million) for the full year 2016, compared with RMB766.6 million for the full year 2015.
  • Net income attributable to the Company's ordinary shareholders from continuing and discontinued operation was RMB1.83 billion (US$263.1 million) for the full year 2016, compared with RMB683.8 million for the full year 2015.
  • Diluted earnings per ADS from continuing operations for the full year 2016 were RMB29.04 (US$4.20), compared with RMB24.00 for the full year 2015.
  • Total diluted earnings per ADS from continuing and discontinued operations for the full year 2016 were RMB53.40 (US$7.72), compared with RMB21.36 for the full year 2015.
  • Non-GAAP net income attributable to the Company's ordinary shareholders from continuing operations for the full year 2016 was RMB1.25 billion (US$179.4 million), compared with RMB1.06 billion for the full year 2015.
  • Non-GAAP basic and diluted earnings per ADS from continuing operations for the full year 2016 were RMB39.60 (US$5.72) and RMB36.28 (US$5.24), respectively.

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

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

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

"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

  • In December 2016, JinkoSolar donated 14 kW to RE-volv, a solar non-profit and member of the White House National Community Solar Partnership.
  • In December 2016, JinkoSolar received the 2016 Chinese Excellent Corporate Citizen Award at the 12th Annual Chinese Excellent Corporate Citizen Conference held by the Corporate Citizenship Committee of the China Association of Social Workers, China Central Television and the Tencent Charity Foundation.
  • In November 2016, JinkoSolar announced that its Shangrao production facility received IEC TS 62941 photovoltaic industry technical specification certification.
  • In November 2016, JinkoSolar completed delivery on 140 MWdc of PV modules for the North Star project located in Chisago County, Minnesota, U.S.
  • In November 2016, JinkoSolar announced that its entire portfolio of PV modules passed the 96-hour Potential Induced Degradation (PID) resistance test under the conditions of 85? degrees and 85% relative humidity at +/-1,000V as required by IEC62804 standards with a degradation of less than 5%.
  • In November 2016, JinkoSolar announced the completion of the sale of Jinko Power downstream business in China.
  • In October 2016, JinkoSolar was appointed as one of the six co-chairs for the Business 20 (B20) Energy, Climate & Resource Efficiency Taskforce, under the leadership of the German G20 Presidency.

Operations and Business Outlook

First Quarter and Full Year 2017 Guidance

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

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

Conference Call Information

JinkoSolar's management will host an earnings conference call on Monday, February 27, 2017 at 8:00 a.m. U.S. Eastern Time (9:00 p.m. Beijing / Hong Kong the same day).

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



Hong Kong / International:

+852-5808-3202


U.S. Toll Free:

+1-855-298-3404


Passcode:

JinkoSolar





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:

  • Non-GAAP net income is adjusted to exclude the expenses relating to changes in fair value of convertible senior notes and capped call options, change in fair value of derivative liability, interest expenses of convertible senior notes, exchange gain on the convertible senior notes and capped call options, stock-based compensation, allocation of net income to redeemable non-controlling interests, and accretion to redemption value of redeemable non-controlling interests; given these Non-GAAP net income adjustments above are either related to the Company or its subsidiaries incorporated in Cayman Islands, which are not subject to tax exposures, or related to those subsidiaries with tax loss positions which result in no tax impacts, therefore no tax adjustment is needed in conjunction with these Non-GAAP net income adjustments; and
  • Non-GAAP earnings per Share and non-GAAP earnings per ADS are adjusted to exclude the expenses relating to the issuance costs of convertible senior notes, changes in fair value of convertible senior notes and capped call options, interest expenses of convertible senior notes and exchange gain on the convertible senior notes and capped call options, stock-based compensation, and accretion to redemption value of redeemable non-controlling interests.

The Company believes that the use of non-GAAP information is useful for analysts and investors to evaluate JinkoSolar's current and future performances based on a more meaningful comparison of net income and diluted net income per ADS when compared with its peers and historical results from prior periods. These measures are not intended to represent or substitute numbers as measured under GAAP. The submission of non-GAAP numbers is voluntary and should be reviewed together with GAAP results.

Currency Convenience Translation

The conversion of Renminbi into U.S. dollars in this release, made solely for the convenience of the readers, is based on the noon buying rate in the city of New York for cable transfers of Renminbi as certified for customs purposes by the Federal Reserve Bank of New York as of December 30, 2016, which was RMB6.9430 to US$1.00. No representation is intended to imply that the Renminbi amounts could have been, or could be, converted, realized, or settled into U.S. dollars at that rate or any other rate. The percentages stated in this press release are calculated based on Renminbi.

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. 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except ADS and Share data)




2015


2016

 Continuing operations 

RMB


RMB


USD

 Revenues from third parties 

15,454,374


21,262,113


3,062,381







 Revenues from related parties 

-


138,525


19,952







 Total revenues 

15,454,374


21,400,638


3,082,333







 Cost of revenues 

(12,522,914)


(17,531,299)


(2,525,032)







 Gross profit 

2,931,460


3,869,339


557,301







 Operating expenses: 






   Selling and marketing 

(1,144,559)


(1,434,039)


(206,545)

   General and administrative 

(521,425)


(779,567)


(112,281)

   Research and development 

(143,671)


(181,106)


(26,085)

   Impairment of long-lived assets 

-


(125,524)


(18,079)

 Total operating expenses 

(1,809,655)


(2,520,236)


(362,990)







 Income from operations 

1,121,805


1,349,103


194,311

 Interest expenses, net 

(311,019)


(359,296)


(51,749)

 Change in fair value of derivative liability 

(2,096)


24,573


3,539

 Subsidy income 

101,874


168,647


24,290

 Exchange gain/(loss), net 

(86,518)


208,811


30,077

 Change in fair value of forward contracts 

56,562


(52,562)


(7,570)

 Change in fair value of convertible senior notes and capped call
options 

(14,571)


(110,242)


(15,878)

 Other income, net 

1,036


8,768


1,263

 Investment income 

-


4,902


706

 Gain on disposal of subsidiaries 

-


5,018


723

 Income from continuing operations before income taxes  

867,073


1,247,722


179,712

 Income tax expense 

(100,534)


(257,487)


(37,086)

 Income from continuing operations,  net of tax 

766,539


990,235


142,626

 Discontinued operations 






 Gain on disposal of discontinued operations 

-


1,007,884


145,165

 Income from discontinued operations before income taxes    

105,090


48,146


6,934

 Income tax expense, net 

(11,330)


(54,466)


(7,845)

Income from discontinued operations, net of tax

93,760


1,001,564


144,254

 Net income 

860,299


1,991,799


286,880

 Less: Net loss attributable to non-controlling
          interests from continuing operations 

(63)


(433)


(62)

 Less: Net income attributable to non-controlling
          interests from discontinued operations 

4,270


6,044


871

 Less: Accretion to redemption value of redeemable non-controlling
          interests of discontinued operations 

172,340


159,478


22,970







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

683,752


1,826,710


263,101







 Earnings/(loss) per share for ordinary shareholders, basic 






 Continuing operations 

6.15


7.87


1.13

 Discontinued operations 

(0.66)


6.64


0.96

 Total earnings/(loss) per share for ordinary shareholders, basic 

5.49


14.51


2.09







 Earnings/(loss) per share for ordinary shareholders, diluted 






 Continuing operations 

6.00


7.26


1.05

 Discontinued operations 

(0.66)


6.09


0.88

 Total earnings/(loss) per share for ordinary shareholders, diluted 

5.34


13.35


1.93







 Earnings/(loss) per ADS for ordinary shareholders, basic 






 Continuing operations 

24.60


31.48


4.52

 Discontinued operations 

(2.64)


26.56


3.84

 Total earnings/(loss) per ADS for ordinary shareholders, basic 

21.96


58.04


8.36







 Earnings/(loss) per ADS for ordinary shareholders, diluted 






 Continuing operations 

24.00


29.04


4.20

 Discontinued operations 

(2.64)


24.36


3.52

 Total earnings/(loss) per ADS for ordinary shareholders, diluted 

21.36


53.40


7.72







 Weighted average ordinary shares outstanding: 






   Basic 

124,618,416


125,870,272


125,870,272

   Diluted 

127,802,961


137,328,725


137,328,725







 Weighted average ADS outstanding: 






   Basic 

31,154,604


31,467,568


31,467,568

   Diluted 

31,950,740


34,332,181


34,332,181







UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME







 Net income 

860,299


1,991,799


286,880

 Other comprehensive (loss)/income: 






   -Unrealized loss on available-for-sale securities 

(413)


-


-

   -Foreign currency translation adjustments 

1,121


92,202


13,279

 Comprehensive income 

861,007


2,084,001


300,159

 Less: comprehensive income attributable to non-controlling interests  

4,207


5,611


809







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

856,800


2,078,390


299,350



















 Reconciliation of GAAP and non-GAAP Results(Excluding discontinued
operations) 











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












 GAAP net income attributable to ordinary shareholders from continuing
operations 

766,602


990,668


142,688







 Change in fair value of derivative liability 

2,096


(24,573)


(3,539)







 Change in fair value of convertible senior notes and capped call options 

14,571


110,242


15,878







 4% of interest expense of convertible senior notes 

67,363


37,177


5,352







 Exchange loss on  convertible senior notes and capped call options 

93,874


42,713


6,152







 Stock-based compensation expense 

112,682


89,568


12,900







 Non-GAAP net income attributable to ordinary shareholders from
continuing operations  

1,057,188


1,245,795


179,432







 Non-GAAP earnings per share attributable to ordinary shareholders
from continuing operations - 






   Basic 

8.48


9.90


1.43

   Diluted 

8.27


9.07


1.31







 Non-GAAP earnings per ADS attributable to ordinary shareholders
from continuing operations- 






   Basic 

33.92


39.60


5.72

   Diluted 

33.08


36.28


5.24







 Non-GAAP weighted average ordinary shares outstanding  






   Basic 

124,618,416


125,870,272


125,870,272

   Diluted 

127,802,961


137,328,725


137,328,725







 Non-GAAP weighted average ADS outstanding  






   Basic 

31,154,604


31,467,568


31,467,568

   Diluted 

31,950,740


34,332,181


34,332,181

 

JINKOSOLAR HOLDING CO., LTD. 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except ADS and Share data)


For the quarter ended


December 31, 2015


September 30, 2016


December 31, 2016

 Continuing operations 

RMB


RMB


RMB


USD

 Revenues from third parties 

5,937,852


5,331,232


5,085,938


732,527









 Revenues from related parties 

-


-


35,565


5,122









 Total revenues 

5,937,852


5,331,232


5,121,503


737,649









 Cost of revenues 

(4,808,049)


(4,305,166)


(4,391,518)


(632,510)









 Gross profit 

1,129,803


1,026,066


729,985


105,139









 Operating expenses: 








   Selling and marketing 

(366,232)


(371,669)


(350,662)


(50,506)

   General and administrative 

(258,600)


(175,414)


(221,810)


(31,947)

   Research and development 

(39,040)


(41,864)


(57,231)


(8,243)

   Impairment of long-lived assets 

-


(3,819)


(22,377)


(3,223)

 Total operating expenses 

(663,872)


(592,766)


(652,080)


(93,919)









 Income from operations 

465,931


433,300


77,905


11,220

 Interest expenses, net 

(87,907)


(132,859)


(74,538)


(10,736)

 Change in fair value of derivative liability 

436


36,048


(10,364)


(1,493)

 Subsidy income 

54,264


12,809


81,222


11,698

 Exchange gain 

80,042


2,602


17,674


2,547

 Change in fair value of forward contracts 

9,774


(9,752)


19


3

 Change in fair value of convertible senior
   notes and capped call options 

(45,301)


(15,684)


(14,712)


(2,119)

 Other income/(expense), net 

1,053


(291)


9,437


1,359

 Investment income 

-


1,731


4,812


693

 Gain on disposal of subsidiaries 

-


-


5,018


723

 Income from continuing operations before income taxes

478,292


327,904


96,473


13,895

 Income tax (expense)/benefit 

(48,620)


(115,973)


49,200


7,086

Income from continuing operations, net of tax

429,672


211,931


145,673


20,981

 Discontinued operations 








 Gain on disposal of discontinued operations 

-


-


1,007,884


145,165

(Loss)/income from discontinued operations before income taxes   

(23,559)


83,083


(97,396)


(14,028)

Income tax expense, net

(10,973)


(830)


(53,020)


(7,636)

(Loss)/income from discontinued operations, net of tax

(34,532)


82,253


857,468


123,501









 Net income 

395,140


294,184


1,003,141


144,482

 Less: Net loss attributable to non-controlling
          interests from continuing operations 

(62)


(221)


(123)


(19)

 Less: Net income attributable to non-controlling
          interests from discontinued operations 

916


1,561


761


110

 Less: Allocation of net income to participating preferred shares issued
          by discontinued operations 

-


10,247


(13,895)


(2,001)

 Less: Accretion to redemption value of redeemable non-controlling
          interests of discontinued operations 

44,934


48,922


16,776


2,416

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

349,352


233,675


999,622


143,976

































 Earnings/(loss) per share for ordinary shareholders, basic 








 Continuing operations 

3.44


1.68


1.15


0.17

 Discontinued operations 

(0.64)


0.17


6.75


0.97

 Total earnings/(loss) per share for ordinary shareholders, basic 

2.80


1.85


7.90


1.14

















 Earnings/(loss) per share for ordinary shareholders, diluted 








 Continuing operations 

3.36


1.35


1.14


0.16

 Discontinued operations 

(0.64)


0.16


6.68


0.96

 Total earnings/(loss) per share for ordinary shareholders, diluted 

2.72


1.51


7.82


1.12









 Earnings/(loss) per ADS for ordinary shareholders, basic 








 Continuing operations 

13.76


6.72


4.60


0.68

 Discontinued operations 

(2.56)


0.68


27.00


3.88

 Total earnings/(loss) per ADS for ordinary shareholders, basic 

11.20


7.40


31.60


4.56









 Earnings/(loss) per ADS for ordinary shareholders, diluted 








 Continuing operations 

13.44


5.40


4.56


0.64

 Discontinued operations 

(2.56)


0.64


26.72


3.84

 Total earnings/(loss) per ADS for ordinary shareholders, diluted 

10.88


6.04


31.28


4.48









 Weighted average ordinary shares outstanding: 








   Basic 

124,922,950


126,056,129


126,412,714


126,412,714

   Diluted 

128,057,418


130,613,442


127,872,331


127,872,331









 Weighted average ADS outstanding: 








   Basic 

31,230,738


31,514,032


31,603,178


31,603,178

   Diluted 

32,014,354


32,653,360


31,968,083


31,968,083









UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME









 Net income 

395,140


294,184


1,003,141


144,482

 Other comprehensive income: 








   -Unrealized loss on available-for-sale securities 

(1,078)


-


-


-

   -Foreign currency translation adjustments 

(7,397)


(3,409)


108,078


15,566

 Comprehensive income 

386,665


290,775


1,111,219


160,048

 Less: Comprehensive income attributable to non-controlling interests 

854


1,340


638


91

 Less:Allocation of net income to participating preferred shares issued
          by discontinued operations 

-


10,247


(13,895)


(2,001)

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

385,811


279,188


1,124,476


161,958

























 Reconciliation of GAAP and non-Gaap Results(Excluding discontinued operations) 















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
















 GAAP net income attributable to ordinary shareholders from
continuing operations 

429,734


212,152


145,796


21,000









 Change in fair value of derivative liability 

(436)


(36,048)


10,364


1,493









 Change in fair value of convertible senior notes and capped call
options 

45,301


15,684


14,712


2,119









 4% of interest expense of convertible senior notes 

16,946


8,007


5,180


746









 Exchange loss on  convertible senior notes and capped call
options 

30,251


5,958


18,536


2,670









 Stock-based compensation expense 

17,139


29,558


33,987


4,895









 Non-GAAP net income attributable to ordinary shareholders
from continuing operations 

538,935


235,311


228,575


32,923









 Non-GAAP earnings per share attributable to ordinary
shareholders from continuing operations - 








   Basic 

4.31


1.87


1.81


0.26

   Diluted 

4.21


1.80


1.79


0.26









 Non-GAAP earnings per ADS attributable to ordinary
shareholders from continuing operations - 








   Basic 

17.24


7.48


7.24


1.04

   Diluted 

16.84


7.20


7.16


1.04









 Non-GAAP weighted average ordinary shares outstanding  








   Basic 

124,922,950


126,056,129


126,412,714


126,412,714

   Diluted 

128,057,418


130,613,442


127,872,331


127,872,331









 Non-GAAP weighted average ADS outstanding  








   Basic 

31,230,738


31,514,032


31,603,178


31,603,178

   Diluted 

32,014,354


32,653,360


31,968,083


31,968,083

JINKOSOLAR HOLDING CO., LTD. 

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)


December 31, 2015


December 31, 2016


RMB


RMB


USD

ASSETS






Current assets:






  Cash and cash equivalents

2,392,591


2,501,417


360,279

  Restricted cash 

555,724


318,785


45,915

  Restricted short-term investments

1,160,518


3,333,450


480,117

  Short-term investments

29,427


71,301


10,269

  Accounts receivable, net - related parties

60,974


1,414,084


203,670

  Accounts receivable, net - third parties

2,690,519


4,753,715


684,677

  Notes receivable, net - related parties

-


610,200


87,887

  Notes receivable, net - third parties

515,442


915,315


131,833

  Advances to suppliers, net - related parties

1,021


662


95

  Advances to suppliers, net - third parties

251,390


325,766


46,920

  Inventories, net

3,203,325


4,473,515


644,320

  Forward contract receivables

7,039


641


92

  Deferred tax assets - current

79,101


130,676


18,821

  Other receivables - related parties

-


79,125


11,396

  Capped Call options

17,490


-


-

  Prepayments and other current assets

715,449


766,645


110,420

  Held-for-sale assets 

10,814,795


-


-

Total current assets

22,494,805


19,695,297


2,836,711







Non-current assets:






  Restricted cash

160,218


197,214


28,405

  Project Assets

-


55,063


7,931

  Long-term investments

7,200


7,200


1,037

  Property, plant and equipment, net

3,766,436


4,738,681


682,512

  Land use rights, net

349,914


450,941


64,949

  Intangible assets, net

20,472


20,297


2,923

  Deferred tax assets - non current

117,803


134,791


19,414

  Other assets - related parties

-


173,376


24,971

  Other assets - third parties

227,701


617,780


88,979

Total non-current assets

4,649,744


6,395,343


921,121







Total assets

27,144,549


26,090,640


3,757,832







LIABILITIES






Current liabilities:






  Accounts payable - related parties

1,479


-


-

  Accounts payable - third parties

3,783,305


4,290,071


617,899

  Notes payable - third parties

1,924,496


5,006,366


721,067

  Accrued payroll and welfare expenses

454,211


582,276


83,865

  Advances from related parties

-


60,541


8,720

  Advances from  third parties

1,299,491


1,376,919


198,318

  Income tax payable

106,002


168,112


24,213

  Other payables and accruals

898,173


1,019,419


146,824

  Other payables due to related parties

4,993


76,034


10,951

  Forward contract payables

4,296


-


-

  Convertible senior notes - current

650,917


423,740


61,031

  Deferred tax liabilities - current

9,266


17,074


2,459

  Derivative liability -  current

-


10,364


1,493

  Bonds payable and accrued interests

866,726


-


-

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

2,589,864


5,279,029


760,338

  Guarantee liabilities to related parties

-


52,711


7,592

  Held-for-sale liabilities 

6,029,223


-


-

Total current liabilities

18,622,442


18,362,656


2,644,770







Non-current liabilities:






  Long-term borrowings

1,308,680


488,520


70,362

  Long-term payables

-


44,015


6,340

  Accrued warranty costs - non current

329,237


511,209


73,629

  Convertible senior notes

856,064


-


-

  Deferred tax liability - non current

25


50,651


7,295

  Derivative liability - non current

68,378


-


-

  Guarantee liabilities to related parties - non current

-


173,376


24,971

Total non-current liabilities

2,562,384


1,267,771


182,597







Total liabilities

21,184,826


19,630,427


2,827,367







Redeemable non-controlling interests

1,607,926


-


-







SHAREHOLDERS' EQUITY






Ordinary shares (US$0.00002 par value,
  500,000,000 shares authorized, 125,473,930 and 
  126,733,266 shares issued and outstanding as of
  December 31, 2015 and December 31, 2016,
  respectively)

18


18


3

Additional paid-in capital

2,924,336


3,145,262


453,012

Statutory reserves

351,763


466,253


67,154

Accumulated other comprehensive income

12,582


104,784


15,092

Treasury stock, at cost; 1,723,200 shares of
  ordinary shares as of December 31,
  2015 and December 31, 2016, respectively

(13,876)


(13,876)


(1,999)

Accumulated retained earnings

1,047,045


2,758,268


397,273







Total JinkoSolar Holding Co., Ltd. shareholders' equity

4,321,868


6,460,709


930,535







Non-controlling interests

29,929


(496)


(70)







Total liabilities and shareholders' equity

27,144,549


26,090,640


3,757,832

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

SOURCE JinkoSolar Holding Co., Ltd.


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