JinkoSolar Announces Fourth Quarter and Full Year 2017 Financial Results
JinkoSolar Announces Fourth Quarter and Full Year 2017 Financial Results
SHANGHAI, March 22, 2018 /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, 2017.
Fourth Quarter 2017 Highlights
-- Total solar module shipments were 2,481 megawatts ("MW") (including 14
MW to be used in the Company's overseas downstream solar projects), an
increase of 4.5% from 2,374 MW in the third quarter of 2017 and an
increase of 43.1% from 1,733 MW in the fourth quarter of 2016.
-- Total revenues were RMB6.35 billion (US$976.4 million), a decrease of
1.0% from the third quarter of 2017 and an increase of 24.0% from the
fourth quarter of 2016.
-- Gross margin was 11.6%, compared with 12.0% in the third quarter of 2017
and 14.3% in the fourth quarter of 2016.
-- Income from operations was RMB91.3 million (US$14.0 million), compared
with RMB91.9 million in the third quarter of 2017 and RMB77.9 million in
the fourth quarter of 2016.
-- Net income attributable to the Company's ordinary shareholders from
continuing operations was RMB22.5 million (US$3.5 million) in the fourth
quarter of 2017, compared with RMB11.3 million in the third quarter of
2017 and RMB145.8 million in the fourth quarter of 2016.
-- Diluted earnings per American depositary share ("ADS") from continuing
operations were RMB0.68 (US$0.12).
-- Non-GAAP net income attributable to the Company's ordinary shareholders
from continuing operations in the fourth quarter of 2017 was RMB41.5
million (US$6.4 million), compared with RMB25.9 million in the third
quarter of 2017 and RMB218.2 million in the fourth quarter of 2016.
-- Non-GAAP basic and diluted earnings per ADS from continuing operations
were RMB1.28 (US$0.20) and RMB1.24 (US$0.20), respectively, in the
fourth quarter of 2017.
Full Year 2017 Highlights
-- Total solar module shipments were 9,807 MW (including 14 MW to be used
in the Company's overseas downstream solar projects), an increase of
47.3% from 6,656 MW for the full year 2016.
-- Total revenues for the full year 2017 were RMB26.47 billion (US$4.07
billion), an increase of 23.7% from RMB21.40 billion for the full year
2016.
-- Gross margin was 11.3% for the full year 2017, compared with 18.1% for
the full year 2016.
-- Income from operations was RMB325.3 million (US$50.0 million), compared
with RMB1.35 billion for the full year 2016.
-- Net income attribute to the Company's ordinary shareholders from
continuing operations was RMB141.7 million (US$21.8 million) for the
full year 2017, compared with RMB990.7 million for the full year 2016.
-- Diluted earnings per ADS from continuing operations for the full year
2017 were RMB4.32 (US$0.68), compared with RMB30.52 for the full year
2016.
-- Total diluted earnings per ADS from continuing and discontinued
operations for the full year 2017 were RMB4.32 (US$0.68), compared with
RMB56.12 for the full year 2016.
-- Non-GAAP net income attributable to the Company's ordinary shareholders
from continuing operations for the full year 2017 was RMB209.0 million
(US$32.1 million), compared with RMB1.27 billion for the full year 2016.
-- Non-GAAP basic and diluted earnings per ADS from continuing operations
for the full year 2017 were RMB6.48 (US$1.00) and RMB6.36 (US$0.96),
respectively.
Mr. Kangping Chen, JinkoSolar's Chief Executive Officer commented, "we shipped 2,481MW of solar modules during the quarter while generating total revenues of $976.4 million. For the full year 2017, we further strengthened our leading global position in terms of global market share by shipping 9,807MW of solar modules, a 47.3% increase from 2016. Our gross margin was 11.3% for the year, compared to 18.1% in 2016, partially as a result of increased collaboration with OEM partners to meet surging market demand, especially in the first half of 2017, and higher raw material costs. We believe our gross margin and bottom line have ample room for improvement in 2018 as a result of the decrease in raw material costs, our reduced use of OEM, and enhanced cost structure supported by technology and supply chain management initiatives. We are confident in our ability to further expand our global market share in 2018."
"While many of the details from the Section 201 petition have yet to be ironed out, we have finalized plans to invest in the construction of an advanced solar module manufacturing facility in the southeastern United States to address local market demand. We will continue to invest in advanced manufacturing capacity overseas based on our global order book and market development. Emerging markets are gradually becoming our biggest growth driver, with demand from Latin America and Australia generating substantial growth momentum and the Middle East and African markets expected to rise in the coming year. We will continue to allocate more resources towards these high-growth markets in order to further solidify the long-term sustainable development of JinkoSolar."
"During the quarter, we continued to optimize our mono wafer production costs and have made substantial progress in crystalizing, cutting and argon recycling during the mono wafer production process. We broke our own world record during the quarter when solar cell efficiency for our P-type mono-crystalline PERC cell hit 23.45%. We also made solid progress in developing N type Hydride Oxide Thin Film (HOT) technology, with an industry-leading 21.9% in average cell efficiency during mass production. With demand increasing, we also plan to expand our production capacity of bifacial cell plus bifacial duo glass modules."
"We expect global demand to continue growing in 2018. This growth will mostly be driven by the emerging markets. With the cost of solar energy continuing to decrease and support for clean energy globally increasing, solar energy is becoming more and more competitive and are being applied more widely. We are very confident in the industry's long-term sustainability and prospects."
Fourth Quarter 2017 Financial Results
Total Revenues
Total revenues in the fourth quarter of 2017 were RMB6.35 billion (US$976.4 million), a decrease of 1.0% from RMB6.42 billion in the third quarter of 2017 and an increase of 24.0% from RMB5.12 billion in the fourth quarter of 2016. The sequential decrease was mainly attributable to a decrease in the shipment of silicon wafers and solar cells in the fourth quarter of 2017. The year-over-year increase was mainly attributable to an increase in solar module shipments, which was partially offset by a decline in the average selling price of solar modules in 2017.
Gross Profit and Gross Margin
Gross profit in the fourth quarter of 2017 was RMB735.3 million (US$113.0 million), compared with RMB772.4 million in the third quarter of 2017 and RMB730.0 million in the fourth quarter of 2016. The sequential decrease was mainly attributable to a slight decline in the gross margin of solar modules in the fourth quarter of 2017. The year-over-year increase was mainly attributable to an increase in solar module shipments, which was partially offset by a decline in the average selling price of solar modules in 2017.
Gross margin was 11.6% in the fourth quarter of 2017, compared with 12.0% in the third quarter of 2017 and 14.3% in the fourth quarter of 2016. The sequential decrease was mainly attributable to an increase in polysilicon cost and the appreciation of the RMB against the US dollar. The year-over-year decrease was mainly attributable to a decline in the average selling price of solar modules in the fourth quarter of 2017.
Income from Operations and Operating Margin
Income from operations in the fourth quarter of 2017 was RMB91.3 million (US$14.0 million), compared with RMB91.9 million in the third quarter of 2017 and RMB77.9 million in the fourth quarter of 2016. Operating margin in the fourth quarter of 2017 was 1.4%, compared with 1.4% in the third quarter of 2017 and 1.5% in the fourth quarter of 2016.
Total operating expenses in the fourth quarter of 2017 were RMB644.0 million (US$99.0 million), a decrease of 5.4% from RMB680.5 million in the third quarter of 2017 and a decrease of 1.2% from RMB652.1 million in the fourth quarter of 2016. The sequential decease was mainly due to a disposal gain in property, plant and equipment, which was partially offset by an increase in provision for accounts receivable. The year-over-year decrease was primarily due to a disposal gain in property, plant and equipment, which was partially offset by an increase in shipping costs.
Total operating expenses accounted for 10.1% of total revenues in the fourth quarter of 2017, compared to 10.6% in the third quarter of 2017 and 12.7% in the fourth quarter of 2016.
Interest Expense, Net
Net interest expense in the fourth quarter of 2017 was RMB55.6 million (US$8.5 million), an increase of 6.2% from RMB52.3 million in the third quarter of 2017 and a decrease of 25.5% from RMB74.5 million in the fourth quarter of 2016. The year-over-year decrease was due to a decrease in interest expenses associated with the Company's convertible senior notes, US$61.1 million of which were repurchased in the first quarter of 2017.
Exchange Gain / (Loss), Net
The Company recorded a net exchange loss (including change in fair value of forward contracts) of RMB33.9 million (US$5.2 million) in the fourth quarter of 2017, compared to a net exchange loss of RMB49.3 million in the third quarter of 2017 and a net exchange gain of RMB17.7 million in the fourth quarter of 2016. The sequential and year-over-year changes were primarily due to the continued depreciation of the US dollar against the RMB.
Income Tax Expense / (Benefit), Net
The Company recorded an income tax expense of RMB31.1 million (US$4.8 million) in the fourth quarter of 2017, compared with an income tax expense of RMB4.5 million in the third quarter of 2017 and an income tax benefit of RMB49.2 million in the fourth quarter of 2016.
Net Income and Earnings per Share
Net income attributable to the Company's ordinary shareholders from continuing operations in the fourth quarter of 2017 was RMB22.5 million (US$3.5 million), compared with RMB11.3 million in the third quarter of 2017 and RMB145.8 million in the fourth quarter of 2016.
Basic and diluted earnings per ordinary share from continuing operations were both of RMB0.17 (US$0.03), during the fourth quarter of 2017. This translates into basic and diluted earnings per ADS from continuing operations both of RMB0.68 (US$0.12).
Non-GAAP net income in the fourth quarter of 2017 was RMB41.5 million (US$6.4 million), compared with RMB25.9 million in the third quarter of 2017 and RMB218.2 million in the fourth quarter of 2016.
Non-GAAP basic and diluted earnings per ordinary share from continuing operations were RMB0.32 (US$0.05) and RMB0.31 (US$0.05), respectively, during the fourth quarter of 2017. This translates into non-GAAP basic and diluted earnings per ADS from continuing operations of RMB1.28 (US$0.20) and RMB1.24 (US$0.20), respectively.
Financial Position
As of December 31, 2017, the Company had RMB2.76 billion (US$424.4 million) in cash and cash equivalents and restricted cash, compared with RMB2.82 billion as of December 31, 2016.
As of December 31, 2017, the Company's accounts receivables due from third parties were RMB4.50 billion (US$691.3 million), compared with RMB4.75 billion as of December 31, 2016.
As of December 31, 2017, the Company's inventories were RMB4.27 billion (US$656.9 million), compared with RMB4.47 billion as of December 31, 2016.
As of December 31, 2017, the Company's total interest-bearing debts were RMB7.43 billion (US$1.14 billion), compared with RMB6.44 billion as of December 31, 2016.
Full Year 2017 Financial Results
Total Revenues
Total revenues for the full year 2017 were RMB26.47 billion (US$4.07 billion), an increase of 23.7% from RMB21.40 billion for the full year 2016. The increase in total revenues was mainly attributable to the increase in shipments of solar modules, which was partially offset by a decline in the average selling price of solar modules.
Gross Profit and Gross Margin
Gross profit for the full year 2017 was RMB2.99 billion (US$459.8 million), a decrease of 22.7% from RMB3.87 billion for the full year 2016. Gross margin was 11.3% for the full year 2017, compared with 18.1% for the full year 2016. The decrease was due to a decline in the average selling price of solar modules, increased volume produced by OEM partners and higher polysilicon price during the full year 2017.
Income from Operations and Operating Margin
Income from operations for the full year 2017 was RMB325.3 million (US$50.0 million), compared with RMB1.35 billion for the full year 2016. Operating margin for the full year 2017 was 1.2%, compared with 6.3% for the full year 2016.
Total operating expenses for the full year 2017 were RMB2.67 billion (US$409.8 million), an increase of 5.8% from RMB2.52 billion for the full year 2016. Operating expenses represented 10.1% of total revenues for the full year 2017, compared with 11.8% for the full year 2016. The increase in total operating expenses was primarily due to an increase in shipping costs and warranty costs, which were partially offset by a disposal gain in property, plant and equipment and a decrease in bad debt expenses due to the reversal of allowance for doubtful accounts upon subsequent collections.
Interest Expense, Net
Net interest expense for the full year 2017 was RMB245.5 million (US$37.7 million), a decrease of 31.7% from RMB359.3 million in 2016. The decrease was due to the repurchase of US$232.6 million in convertible senior notes and the repayment of US$123.5 million in bond payables.
Exchange Gain / (Loss), Net
The Company recorded an exchange loss of RMB122.6 million (US$18.8 million) for the full year 2017 due primarily to deprecation of US dollars against RMB. The Company had net exchange gain of RMB156.2 million in 2016.
Income Tax Expense, Net
The Company recognized an income tax expense of RMB4.6 million (US$0.7 million) for the full year 2017, compared with an income tax expense of RMB257.5 million in 2016.
Net Income and Earnings per Share
Net income attributable to the Company's ordinary shareholders from continuing operations for the full year 2017 was RMB141.7 million (US$21.8 million), compared with a net income of RMB990.7 million in 2016.
Basic and diluted earnings per share from continuing operations for the full year 2017 were RMB1.10 (US$0.17) and RMB1.08 (US$0.17), respectively. This translates into basic and diluted earnings per ADS from continuing operations of RMB4.40 (US$0.68) and RMB4.32 (US$0.68), respectively.
Non-GAAP net income from continuing operations for the full year 2017 was RMB209.0 million (US$32.1 million), compared with non-GAAP net income of RMB1.27 billion in 2016.
Non-GAAP basic and diluted earnings per share from continuing operations for the full year 2017 were RMB1.62 (US$0.25) and RMB1.59 (US$0.24), respectively, which translates into non-GAAP basic and diluted earnings per ADS from continuing operations of RMB6.48 (US$1.00) and RMB6.36 (US$0.96), respectively.
Fourth Quarter and Full Year 2017 Operational Highlights
Solar Module Shipments
Total solar module shipments in the fourth quarter of 2017 were 2,481 MW, including 14 MW to be used in the Company's overseas downstream solar projects.
Total solar module shipments in 2017 were 9,807 MW (including14 MW to be used in the Company's overseas downstream solar projects), compared to 6,656 MW in 2016.
Solar Products Production Capacity
As of December 31, 2017, the Company's in-house annual silicon wafer, solar cell and solar module production capacity was 8GW, 5GW and 8GW, respectively.
Recent Business Developments
-- In November 2017, JinkoSolar announced that it has been awarded the
Cradle-to-Cradle certificate by SGS, the world's leading testing,
inspection, verification, and certification organization.
-- In December 2017, JinkoSolar supplied polycrystalline photovoltaic
panels to the first solar power plant in Armenia.
-- In January 2018, JinkoSolar announced that its wholly-owned subsidiary,
JinkoSolar (U.S.) Inc., has signed a major master solar module supply
agreement with a U.S. counterparty.
-- In February 2018, JinkoSolar announced that its world record breaking
1177 MW Sweihan project, co-developed by JinkoSolar, Marubeni, and the
Abu Dhabi Electricity and Water Authority, was named as the Large Scale
Solar Project of the Year by the Middle East Solar Industry Association.
-- In February 2018, JinkoSolar announced that it closed the follow-on
offering of 4,140,000 ADSs, each representing four ordinary shares of
the Company, par value US$0.00002 per share, at US$18.15 per ADS. The
net proceeds of the follow-on offering to the Company, after deducting
underwriting commissions and fees and estimated offering expenses, was
approximately US$71.1 million.
-- In March 2018, JinkoSolar announced that it has completed the largest
solar power plant in the Aegean region in cooperation with Asunim
Turkey, a leading PV project developer and EPC company.
Operations and Business Outlook
First Quarter and Full Year 2018 Guidance
For the first quarter of 2018, the Company estimates total solar module shipments to be in the range of 1.8 GW to 2 GW.
For the full year 2018, the Company estimates total solar module shipments to be in the range of 11.5 GW and 12 GW.
Conference Call Information
JinkoSolar's management will host an earnings conference call on Thursday, March 22, 2018 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: 08398519#
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 29, 2018. The dial-in details for the replay are as follows:
International: +61 2 8325 2405
U.S.: +1 646 982 0473
Passcode: 319286604#
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, 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 8.0 GW for silicon wafers, 5.0 GW for solar cells, and 8.0 GW for solar modules, as of December 31, 2017.
JinkoSolar has over 12,000 employees across its 8 productions facilities globally, 16 oversea subsidiaries in Japan (2), Singapore, India, Turkey, Germany, Italy, Switzerland, United States, Canada, Mexico, Brazil, Chile, Australia, South Africa and United Arab Emirates, and global sales offices in China, Hong Kong, Japan, India, Turkey, Germany, Switzerland, United States, Brazil, Chile, Australia, South Africa and United Arab Emirates.
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, 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 29, 2017, which was RMB6.5063 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)
2016 2017
---- ----
Continuing operations RMB RMB USD
Revenues from third parties 21,262,113 24,791,272 3,810,349
Revenues from related parties 138,525 1,681,671 258,468
------- --------- -------
Total revenues 21,400,638 26,472,943 4,068,817
Cost of revenues (17,531,299) (23,481,375) (3,609,021)
----------- ----------- ----------
Gross profit 3,869,339 2,991,568 459,796
Operating expenses:
Selling and marketing (1,434,039) (1,901,358) (292,233)
General and administrative (779,567) (470,845) (72,368)
Research and development (181,106) (294,103) (45,203)
Impairment of long-lived assets (125,524) - -
-------- --- ---
Total operating expenses (2,520,236) (2,666,306) (409,804)
Income from operations 1,349,103 325,262 49,992
Interest expenses, net (359,296) (245,530) (37,737)
Change in fair value of derivative liability 24,573 (16,122) (2,478)
Subsidy income 168,647 147,917 22,734
Exchange gain/(loss), net 208,811 (114,345) (17,575)
Change in fair value of forward contracts (52,562) (8,211) (1,262)
Change in fair value of convertible senior notes and capped call options (110,242) - -
Other income, net 8,768 59,647 9,168
Investment income 4,902 - -
Gain on disposal of subsidiaries 5,018 257 40
----- --- ---
Income from continuing operations before income taxes 1,247,722 148,875 22,882
Income tax expense (257,487) (4,627) (711)
Equity in income of affiliated companies - (2,056) (316)
--- ------ ----
Income from continuing operations, net of tax 990,235 142,192 21,855
Discontinued operations
Gain on disposal of discontinued operations 1,007,884 - -
Income from discontinued operations before income taxes 48,146 - -
Income tax expense, net (54,466) - -
------- --- ---
Income from discontinued operations, net of tax 1,001,564 - -
--------- --- ---
Net income 1,991,799 142,192 21,855
Less: Net (loss)/income attributable to non-controlling (433) 486 75
interests from continuing operations
Less: Net income attributable to non-controlling 6,044 - -
interests from discontinued operations
Less: Accretion to redemption value of redeemable non-controlling 159,478 - -
interests of discontinued operations
Net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary 1,826,710 141,706 21,780
shareholders
Earnings per share for ordinary shareholders, basic
Continuing operations 7.87 1.10 0.17
Discontinued operations 6.64 - -
==== === ===
Total earnings per share for ordinary shareholders, basic 14.51 1.10 0.17
Earnings per share for ordinary shareholders, diluted
Continuing operations 7.63 1.08 0.17
Discontinued operations 6.40 - -
==== === ===
Total earnings per share for ordinary shareholders, diluted 14.03 1.08 0.17
Earnings per ADS for ordinary shareholders, basic
Continuing operations 31.48 4.40 0.68
Discontinued operations 26.56 - -
===== === ===
Total earnings per ADS for ordinary shareholders, basic 58.04 4.40 0.68
Earnings per ADS for ordinary shareholders, diluted
Continuing operations 30.52 4.32 0.68
Discontinued operations 25.60 - -
===== === ===
Total earnings per ADS for ordinary shareholders, diluted 56.12 4.32 0.68
Weighted average ordinary shares outstanding:
Basic 125,870,272 128,944,330 128,944,330
Diluted 130,590,441 131,687,230 131,687,230
Weighted average ADS outstanding:
Basic 31,467,568 32,236,083 32,236,083
Diluted 32,647,610 32,921,808 32,921,808
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Net income 1,991,799 142,192 21,855
Other comprehensive income/(loss):
-Foreign currency translation adjustments 92,202 (81,488) (12,525)
------ ------- -------
Comprehensive income 2,084,001 60,704 9,330
Less: comprehensive income attributable to non-controlling interests 5,611 486 75
Comprehensive income attributable to JinkoSolar Holding Co., Ltd.'s 2,078,390 60,218 9,255
ordinary shareholders
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 990,668 141,706 21,780
operations
Change in fair value of convertible senior notes and capped call options 110,242 - -
4% of interest expense of convertible senior notes 37,177 1,558 239
Exchange loss on convertible senior notes and capped call options 42,713 840 129
Stock-based compensation expense 89,568 64,868 9,970
Non-GAAP net income attributable to ordinary shareholders from 1,270,368 208,972 32,118
continuing operations
Non-GAAP earnings per share attributable to ordinary shareholders from
continuing operations -
Basic 10.09 1.62 0.25
Diluted 9.73 1.59 0.24
Non-GAAP earnings per ADS attributable to ordinary shareholders from continuing operations-
Basic 40.36 6.48 1.00
Diluted 38.92 6.36 0.96
Non-GAAP weighted average ordinary shares outstanding
Basic 125,870,272 128,944,330 128,944,330
Diluted 130,590,441 131,687,230 131,687,230
Non-GAAP weighted average ADS outstanding
Basic 31,467,568 32,236,083 32,236,083
Diluted 32,647,610 32,921,808 32,921,808
Results presented herein exclude Jinko Power-related discontinued operations, unless specified otherwise
JINKOSOLAR HOLDING CO., LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except ADS and Share data)
For the quarter ended
December 31, 2016 September 30, 2017 December 31, 2017
----------------- ------------------ -----------------
Continuing operations RMB RMB RMB USD
Revenues from third parties 5,085,938 5,958,121 5,171,540 794,851
Revenues from related parties 35,565 461,292 1,181,100 181,532
------ ------- --------- -------
Total revenues 5,121,503 6,419,413 6,352,640 976,383
Cost of revenues (4,391,518) (5,647,016) (5,617,326) (863,367)
---------- ---------- ---------- --------
Gross profit 729,985 772,397 735,314 113,016
Operating expenses:
Selling and marketing (350,662) (489,767) (446,956) (68,696)
General and administrative (221,810) (116,121) (113,744) (17,482)
Research and development (57,231) (74,652) (83,271) (12,798)
Impairment of long-lived assets (22,377) - - -
------- --- --- ---
Total operating expenses (652,080) (680,540) (643,971) (98,976)
Income from operations 77,905 91,857 91,343 14,040
Interest expenses, net (74,538) (52,286) (55,551) (8,538)
Change in fair value of derivative liability (10,364) (3,437) 3,333 512
Subsidy income 81,222 14,154 29,533 4,539
Exchange gain/(loss) 17,674 (46,368) (31,827) (4,892)
Change in fair value of forward contracts 19 (2,946) (2,031) (312)
Change in fair value of convertible senior (14,712) - - -
notes and capped call options
Other income, net 9,437 15,109 20,823 3,200
Gain on disposal of subsidiaries 5,018 - 257 40
Investment income 4,812 - - -
Income from continuing operations before income taxes 96,473 16,083 55,880 8,589
Income tax benefit/(expense) 49,200 (4,466) (31,095) (4,779)
Equity in income of affiliated companies - (438) (1,424) (219)
Income from continuing operations, net of tax 145,673 11,179 23,361 3,591
Discontinued operations
Gain on disposal of discontinued operations 1,007,884 - - -
(Loss)/income from discontinued operations before income taxes (97,396) - - -
Income tax expense, net (53,020) - - -
Income from discontinued operations, net of tax 857,468 - - -
Net income 1,003,141 11,179 23,361 3,591
Less: Net (loss)/income attributable to non-controlling (123) (113) 889 137
interests from continuing operations
Less: Net income attributable to non-controlling 761 - - -
interests from discontinued operations
Less: Allocation of net income to participating preferred shares issued (13,895) - - -
by discontinued operations
Less: Accretion to redemption value of redeemable non-controlling 16,776 - - -
interests of discontinued operations
Net income attributable to JinkoSolar 999,622 11,292 22,472 3,454
Holding Co., Ltd.'s ordinary shareholders
Earnings per share for ordinary shareholders, basic
Continuing operations 1.15 0.09 0.17 0.03
Discontinued operations 6.75 - - -
==== === === ===
Total earnings per share for ordinary shareholders, basic 7.90 0.09 0.17 0.03
Earnings per share for ordinary shareholders, diluted
Continuing operations 1.14 0.08 0.17 0.03
Discontinued operations 6.68 - - -
==== === === ===
Total earnings per share for ordinary shareholders, diluted 7.82 0.08 0.17 0.03
Earnings per ADS for ordinary shareholders, basic
Continuing operations 4.60 0.36 0.68 0.12
Discontinued operations 27.00 - - -
===== === === ===
Total earnings per ADS for ordinary shareholders, basic 31.60 0.36 # 0.68 0.12
Earnings per ADS for ordinary shareholders, diluted
Continuing operations 4.56 0.32 0.68 0.12
Discontinued operations 26.72 - - -
===== === === ===
Total earnings per ADS for ordinary shareholders, diluted 31.28 0.32 0.68 0.12
Weighted average ordinary shares outstanding:
Basic 126,412,714 130,186,074 130,432,074 130,432,074
Diluted 127,872,331 134,413,564 134,572,596 134,572,596
Weighted average ADS outstanding:
Basic 31,603,178 32,546,519 32,608,019 32,608,019
Diluted 31,968,083 33,603,391 33,643,149 33,643,149
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Net income 1,003,141 11,179 23,361 3,591
Other comprehensive income:
-Foreign currency translation adjustments 108,078 (25,226) (16,308) (2,507)
------- ------- ------- ------
Comprehensive income/(loss) 1,111,219 (14,047) 7,053 1,084
--------- ------- ----- -----
Less: Comprehensive income/(loss) attributable to non- 638 (113) 889 137
controlling interests
Less:Allocation of net income to participating preferred shares (13,895) - - -
issued by discontinued operations
Comprehensive income/(loss) attributable to JinkoSolar 1,124,476 (13,934) 6,164 947
Holding Co., Ltd.'s ordinary shareholders
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 145,796 11,292 22,472 3,454
continuing operations
Change in fair value of convertible senior notes and capped 14,712 - - -
call options
4% of interest expense of convertible senior notes 5,180 1 1 -
Exchange loss/(gain) on convertible senior notes and capped 18,536 (1) (1) -
call options
Stock-based compensation expense 33,987 14,645 19,000 2,920
Non-GAAP net income attributable to ordinary shareholders 218,211 25,937 41,472 6,374
from continuing operations
Non-GAAP earnings per share attributable to ordinary
shareholders from continuing operations -
Basic 1.81 0.20 0.32 0.05
Diluted 1.79 0.19 0.31 0.05
Non-GAAP earnings per ADS attributable to ordinary shareholders from continuing operations -
Basic 7.24 0.80 1.28 0.20
Diluted 7.16 0.76 1.24 0.20
Non-GAAP weighted average ordinary shares outstanding
Basic 126,412,714 130,186,074 130,432,074 130,432,074
Diluted 127,872,331 134,413,564 134,572,596 134,572,596
Non-GAAP weighted average ADS outstanding
Basic 31,603,178 32,546,519 32,608,019 32,608,019
Diluted 31,968,083 33,603,391 33,643,149 33,643,149
Results presented herein exclude Jinko Power-related discontinued operations, unless specified otherwise
JINKOSOLAR HOLDING CO., LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, 2016 December 31, 2017
----------------- -----------------
RMB RMB USD
ASSETS
Current assets:
Cash and cash equivalents 2,501,417 1,928,303 296,375
Restricted cash 318,785 833,072 128,041
Restricted short-term investments 3,333,450 3,237,773 497,636
Short-term investments 71,301 2,685 413
Accounts receivable, net - related parties 1,414,084 2,113,042 324,769
Accounts receivable, net - third parties 4,753,715 4,497,635 691,274
Notes receivable, net - related parties 610,200 - -
Notes receivable, net - third parties 915,315 571,232 87,797
Advances to suppliers, net - related parties 662 - -
Advances to suppliers, net - third parties 325,766 397,076 61,029
Inventories, net 4,473,515 4,273,730 656,860
Forward contract receivables 641 - -
Deferred tax assets 130,676 - -
Other receivables - related parties 79,125 46,592 7,161
Prepayments and other current assets 766,645 1,706,717 262,317
Total current assets 19,695,297 19,607,857 3,013,672
Non-current assets:
Restricted cash 197,214 248,672 38,220
Project Assets 55,063 473,731 72,811
Long-term investments 7,200 22,322 3,431
Property, plant and equipment, net 4,738,681 6,680,187 1,026,726
Land use rights, net 450,941 443,269 68,129
Intangible assets, net 20,297 25,743 3,956
Deferred tax assets 134,791 275,372 42,324
Other assets - related parties 173,376 146,026 22,444
Other assets - third parties 617,780 713,226 109,621
Total non-current assets 6,395,343 9,028,548 1,387,662
Total assets 26,090,640 28,636,405 4,401,334
---------- ---------- ---------
LIABILITIES
Current liabilities:
Accounts payable - related parties - 5,329 819
Accounts payable - third parties 4,290,071 4,658,202 715,952
Notes payable - third parties 4,796,766 5,672,497 871,847
Accrued payroll and welfare expenses 582,276 721,380 110,874
Advances from related parties 60,541 37,400 5,748
Advances from third parties 1,376,919 748,959 115,113
Income tax payable 168,112 27,780 4,270
Other payables and accruals 1,019,419 1,804,799 277,391
Other payables due to related parties 76,034 12,333 1,896
Forward contract payables - 4,521 695
Convertible senior notes - current 423,740 - -
Deferred tax liabilities 17,074 - -
Derivative liability - current 10,364 26,486 4,071
Bond payable and accrued interests - 10,257 1,576
Short-term borrowings from third parties, 5,488,629 6,204,440 953,605
including current portion of long-term bank
borrowings
Guarantee liabilities to related parties 52,711 28,034 4,309
Total current liabilities 18,362,656 19,962,417 3,068,166
Non-current liabilities:
Long-term borrowings 488,520 379,789 58,373
Accrued income tax - non current - 6,041 928
Long-term payables 44,015 538,410 82,753
Bond payables - 298,425 45,867
Accrued warranty costs - non current 511,209 571,718 87,871
Convertible senior notes - 65 10
Deferred tax liability 50,651 70,122 10,778
Guarantee liabilities to related parties 173,376 120,154 18,467
- non current
Total non-current liabilities 1,267,771 1,984,724 305,047
Total liabilities 19,630,427 21,947,141 3,373,213
---------- ---------- ---------
SHAREHOLDERS' EQUITY
Ordinary shares (US$0.00002 par value, 18 19 3
500,000,000 shares authorized, 126,733,266 and
132,146,074 shares issued and outstanding as of
December 31, 2016 and December 31, 2017,
respectively)
Additional paid-in capital 3,145,262 3,313,608 509,292
Statutory reserves 466,253 516,886 79,444
Accumulated other comprehensive income 104,784 23,296 3,580
Treasury stock, at cost; 1,723,200 ordinary shares as (13,876) (13,876) (2,132)
of December 31, 2016 and December 31,
2017
Accumulated retained earnings 2,758,268 2,849,341 437,936
--------- --------- -------
Total JinkoSolar Holding Co., Ltd. shareholders' 6,460,709 6,689,274 1,028,123
equity
Non-controlling interests (496) (10) (2)
Total liabilities and shareholders' equity 26,090,640 28,636,405 4,401,334
---------- ---------- ---------
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SOURCE JinkoSolar Holding Co., Ltd.
