JinkoSolar Announces First Quarter 2020 Financial Results

SHANGHAI, June 15, 2020 /PRNewswire/ -- 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, 2020.

Strategic Business Updates

    --  Technological transformation towards high-efficiency portfolio of
        products now complete - mono wafer production capacity has been fully
        ramped up to 18GW in April 2020.
    --  Sale of two solar power plants with a combined capacity of 155MW in
        Mexico was closed in March 2020, allowing for the deleveraging of the
        Company's balance sheet by US$121.3 million.
    --  Leading the industry towards grid parity with the launch of 2020
        flagship Tiger Pro module series.
    --  Reaffirm 2020 full-year shipment guidance and capacity expansion plan
        despite a decrease in global demand.
    --  Pandemic accelerating removal of outdated capacity in the market
        providing an opportunity for leading industry players to expand market
        share.

First Quarter 2020 Operational and Financial Highlights

    --  Total solar module shipments were 3,411 megawatts ("MW"), within
        JinkoSolar's guidance range of 3.4 GW to 3.7 GW, a decrease of 24.8%
        from 4,538 MW in the fourth quarter of 2019 and an increase of 12.3%
        from 3,037 MW in the first quarter of 2019.
    --  Total revenues were RMB8.48 billion (US$1.20 billion). Excluding the
        impact from the disposal of the two solar power plants in Mexico,
        revenues were RMB7.29 billion (US$1.03 billion) and within JinkoSolar's
        guidance range of US$1.00 billion to US$1.08 billion; a decrease of
        23.5% from the fourth quarter of 2019 and an increase of 25.1% from the
        first quarter of 2019.
    --  Gross margin was 19.5%. Excluding the impact from the disposal of two
        solar power plants in Mexico, gross margin was 19.7%, within
        JinkoSolar's guidance range of 19.0% to 21.0%, compared with 18.2% in
        the fourth quarter of 2019 and 16.6% in the first quarter of 2019.
    --  Income from operations was RMB732.7 million (US$103.5 million).
        Excluding the impact from the disposal of two solar power plants in
        Mexico, income from operations was RMB519.5 million (US$73.4 million),
        compared with RMB594.8 million in the fourth quarter of 2019 and
        RMB235.7 million in the first quarter of 2019.
    --  Net income attributable to the Company's ordinary shareholders was
        RMB282.4 million (US$39.9 million) in the first quarter of 2020,
        compared with RMB369.5 million in the fourth quarter of 2019 and RMB40.2
        million in the first quarter of 2019.
    --  Diluted earnings per American depositary share ("ADS") were RMB2.67
        (US$0.38) in the first quarter of 2020.
    --  Non-GAAP net income attributable to the Company's ordinary shareholders
        in the first quarter of 2020 was RMB227.5 million (US$32.1million),
        compared with RMB432.2 million in the fourth quarter of 2019 and RMB33.3
        million in the first quarter of 2019.
    --  Non-GAAP basic and diluted earnings per ADS were RMB5.09 (US$0.72) and
        RMB4.59 (US$0.65), respectively, in the first quarter of 2020, compared
        with RMB9.74 for both in the fourth quarter of 2019 and RMB0.85 and
        RMB0.84, respectively, in the first quarter of 2019.

Mr. Kangping Chen, JinkoSolar's Chief Executive Officer commented, "JinkoSolar continued to outperform during the quarter despite a very challenging global operating environment. Total solar module shipments, total revenue and gross margin were all within our guidance range for the quarter. Module shipments hit a record high 3,411MW during the quarter while total revenues were US$1.03 billion and gross margin was 19.7% if you exclude the impact from the disposal of two solar power plants in Mexico. As one of the world's leading solar module manufacturers, we have leveraged our deep experience to lead the industry through the pandemic which has allowed us to not only further expand our market share but also create technical standards and develop technological breakthroughs for a variety of products. Our order book for the second quarter and the rest of the year remains strong, and our guidance for total shipments for the full year 2020 remains unchanged at 18 to 20 GW."

"While we expect global installations to fall by around 25% from last year due to the pandemic, we see a number of growth opportunities in the near-term as the market consolidates. Governments around the world have refocused their attention on energy security and localization, especially after the COVID-19 outbreak. As solar energy continues to race towards grid parity, we expect more countries to implement policies that support solar energy in the post-pandemic era, and at the same time, remove outdated energy capacity, reduce the levelized cost of energy for solar, and accelerate the application of new technologies to drive the deeper penetration of solar energy globally. Smaller, less-competitive manufacturers will gradually exit the market, leaving more opportunities for a few key players to expand their market share worldwide."

"Technology remains central to strengthening our competitive edge in the market. We recently launched a new Tiger Pro series module with a maximum power output of 580W. The pandemic has actually accelerated the adoption of high-efficiency premium products by downstream partners which is allowing the industry to transition into the 500W ultra-high efficiency era earlier than expected. We continue to lead the industry by developing and launching innovative premium products, leveraging our highly-skilled R&D team, industry-leading research platform and expanding capacity to bring mass-produced cutting-edge products to market."

"We continue to face a variety of challenges so far during the second quarter of 2020. Despite falling raw material prices, there has been a significant decline in overall global demand, and varying degrees of logistics and project delays in overseas markets. Our teams have been working hard to coordinate production, logistics and sales, while optimizing inventory levels. We continue to arrange shipments of personal protective equipment to our Malaysian and U.S. production facilities and ensure we are doing all we can to care for our employees, clients, suppliers and other business partners during this challenging time."

First Quarter 2020 Financial Results

Total Revenues

Total revenues in the first quarter of 2020 were RMB8.48 billion (US$1.20 billion). In March 2020, the Company disposed of two solar power plants in Mexico with a combined capacity of 155 MW to an independent third party, and recognized revenue and cost of sales in the amount of RMB1.20 billion (US$169.1 million) and RMB979.7 million (US$138.4 million), respectively. Revenue from the disposal is composed of RMB284.4 million (US$ 40.1 million) in cash consideration and RMB1.29 billion (US$ 182.2 million) in non-cash consideration related to the buyer assuming project debt which was offset by settlement of loan receivables due from the solar power plants in the amount of RMB 376.9 million (US$ 53.2 million). Excluding the impact from the disposal of two solar power plants in Mexico, revenue was RMB7.29 billion (US$1.03 billion), a decrease of 23.5% from RMB9.53 billion in the fourth quarter of 2019 and an increase of 25.1% from RMB5.82 billion in the first quarter of 2019. The sequential decrease was mainly attributable to a decrease in the shipment of solar modules partially due to the delay of module shipments caused by the outbreak of COVID-19. The year-over-year increase was mainly attributable to the increase in shipment of solar modules.

Gross Profit and Gross Margin

Gross profit in the first quarter of 2020 was RMB1.66 billion (US$234.0 million). Excluding the impact from the disposal of two solar power plants in Mexico, gross profit was RMB1.44 billion (US$203.2 million), compared with RMB1.73 billion in the fourth quarter of 2019 and RMB964.3 million in the first quarter of 2019. The sequential decrease was mainly attributable to a decrease in the shipment of solar modules. The year-over-year increase was mainly attributable to (i) an increase in the shipment of solar modules, (ii) an increase in self-produced production volume that is increasingly shifting toward integrated mono-based high-efficiency products capacity, and (iii) the continued reduction of integrated production costs resulting from the Company's industry-leading integrated cost structure.

Gross margin was 19.5% in the first quarter of 2020. Excluding the impact from the disposal of two solar power plants in Mexico, gross margin was 19.7%, compared with 18.2% in the fourth quarter of 2019 and 16.6% in the first quarter of 2019. The sequential and year-over-year increases were mainly attributable to (i) an increase in self-produced production volume by increasing shift toward integrated mono-based high-efficiency products capacity, and (ii) the continued reduction of integrated production costs resulting from the Company's industry-leading integrated cost structure.

Income from Operations and Operating Margin

Income from operations in the first quarter of 2020 was RMB732.7 million (US$103.5 million), including RMB213.2 million (US$30.1 million) from the disposal of two solar power plants in Mexico, compared with RMB594.8 million in the fourth quarter of 2019 and RMB235.7 million in the first quarter of 2019. Operating margin was 8.6% in the first quarter of 2020. Excluding the impact from the disposal of two solar power plants in Mexico, operating margin was 7.1%, compared with 6.2% in the fourth quarter of 2019 and 4.0% in the first quarter of 2019.

Total operating expenses in the first quarter of 2020 were RMB924.2 million (US$130.5 million) including RMB4.8 million (US$ 0.7 million) from the disposal of two solar power plants in Mexico, a decrease of 18.6% from RMB1.13 billion in the fourth quarter of 2019 and an increase of 26.8% from RMB728.6 million in the first quarter of 2019. The sequential decease was mainly due to (i) a decrease in shipping cost resulting from a decrease in solar module shipments, (ii) a decrease of impairment loss on property, plant and equipment, and (iii) a reversal of a previous bad debt provision upon cash receipt of RMB52.5 million (USD7.4 million) based on final judgement for the lawsuits with Wuxi Zhongcai. The year-over-year increase was mainly due to an increase in shipping costs.

Total operating expenses accounted for 10.9% of total revenues in the first quarter of 2020. Excluding the impact from the disposal of two solar power plants in Mexico, operating expense accounted for 12.6% of revenues, compared to 11.9% in the fourth quarter of 2019 and 12.5% in the first quarter of 2019. The sequential increase was primarily due to an increase in shipping costs as a percentage of total revenue associated with a higher percentage of shipments to overseas market in the first quarter of 2020.

Interest Expense, Net

Net interest expense in the first quarter of 2020 was RMB108.6 million (US$15.3 million), an increase of 29.6% from RMB83.8 million in the fourth quarter of 2019 and an increase of 13.0% from RMB96.1 million in the first quarter of 2019. The sequential increase was mainly due to an increase in interest expense associated with discounted notes receivables in the first quarter of 2020. The year-over-year increase was mainly due to (i) an increase in borrowings, (ii) the cessation of interest capitalization on certain completed solar projects, and (iii) issuance of additional convertible senior notes in May 2019.

Exchange (Loss)/Gain 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 RMB106.8 million (US$15.1 million) in the first quarter of 2020, compared to a net exchange gain of RMB77.9 million in the fourth quarter of 2019 and a net exchange loss of RMB62.9 million in the first quarter of 2019. With the rapid increase in overseas orders, the Company increased its foreign currency hedge ratio to hedge against anticipated cash flow denominated in U.S. dollars over the next six months. The Company recorded a loss arising from foreign exchange forward contracts associated with the appreciation of the U.S. dollars against the RMB in the first quarter of 2020.

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 RMB78.9 million (US$11.1 million) in the first quarter of 2020, compared to a gain of RMB24.5 million in the fourth quarter of 2019. The loss was primarily due to a decrease in long-term interest rates in the first quarter of 2020. The Company did not elect to use hedge accounting for any of its derivatives.

Change in Fair Value of Convertible Senior Notes and Call Option

The Company issued US$85.0 million of 4.5% convertible senior notes due 2024 (the "Notes") in May 2019 and has elected to measure the Notes at fair value. The Company recognized a gain from a change in fair value of the Notes of RMB166.2 million (US$23.5 million) in the first quarter of 2020, compared to a loss of RMB152.7 million in the fourth quarter of 2019. The change was primarily due to a decrease in the Company's stock price in the first quarter of 2020.

Concurrent with the issuance of the Notes in May 2019, the Company entered into a call option transaction with an affiliate of Credit Suisse Securities (USA) LLC. The Company accounted for the call option transaction as freestanding derivative assets in its consolidated balance sheets, which is marked to market during each reporting period. The Company recorded a loss from a change in fair value of the call option of RMB100.2 million (US$14.1 million) in the first quarter of 2020, compared to a gain of RMB85.6 million in the fourth quarter of 2019. The change was primarily due to a decrease in the Company's stock price in the first quarter of 2020.

Equity in (Loss)/Gain 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 RMB101.5 million (US$14.3 million) in the first quarter of 2020, compared with a gain of RMB31.8 million in the fourth quarter of 2019 and a loss of RMB23.7 million in the first quarter of 2019. The loss primarily arose from change in fair value of interest rate swap agreements purchased by Sweihan PV Power Company P.J.S.C. due to a decrease in long-term interest rates in the first quarter of 2020. Hedge accounting was not applied for the derivative.

Income Tax (Expenses)/Benefit

The Company recorded an income tax expense of RMB109.5 million (US$15.5 million) in the first quarter of 2020, compared with an income tax expense of RMB221.0 million in the fourth quarter of 2019 and an income tax benefit of RMB4.3 million in the first quarter of 2019. The sequential decrease was mainly because (i) a JinkoSolar's subsidiary turned a profit in 2019 and utilized corresponding deferred tax assets recognized for tax loss carryforward, and (ii) JinkoSolar's subsidiaries in U.S. with higher income tax rate generated higher profits in the fourth quarter of 2019 compared to the first quarter of 2020.

Net Income and Earnings per Share

Net income attributable to the Company's ordinary shareholders was RMB282.4 million (US$39.9 million) in the first quarter of 2020, compared with RMB369.5 million in the fourth quarter of 2019 and RMB40.2 million in the first quarter of 2019.

Basic and diluted earnings per ordinary share were RMB1.58 (US$0.22) and RMB0.67 (US$0.09), respectively, during the first quarter of 2020. This translates into basic and diluted earnings per ADS of RMB6.32 (US$0.89) and RMB2.67 (US$0.38), respectively.

Non-GAAP net income attributable to the Company's ordinary shareholders in the first quarter of 2020 was RMB227.5 million (US$32.1 million), compared with RMB432.2 million in the fourth quarter of 2019 and RMB33.3 million in the first quarter of 2019.

Non-GAAP basic and diluted earnings per ordinary share were RMB1.27 (US$0.18) and RMB1.15 (US$0.16), respectively, during the first quarter of 2020. This translates into non-GAAP basic and diluted earnings per ADS of RMB5.09 (US$0.72) and RMB4.59 (US$0.65), respectively.

Financial Position

As of March 31, 2020, the Company had RMB4.74 billion (US$669.5 million) in cash and cash equivalents and restricted cash, compared with RMB6.23 billion as of December 31, 2019.

As of March 31, 2020, the Company's accounts receivables due from third parties were RMB5.31 billion (US$750.3 million), compared with RMB5.27 billion as of December 31, 2019.

As of March 31, 2020, the Company's inventories were RMB7.15 billion (US$1.01 billion), compared with RMB5.82 billion as of December 31, 2019.

As of March 31, 2020, the Company's total interest-bearing debts were RMB12.79 billion (US$1.81 billion), of which RMB1.15 billion (US$162.3 million) was related to the Company's overseas downstream solar projects, compared with RMB13.41 billion, of which RMB2.05 billion was related to the Company's overseas downstream solar projects as of December 31, 2019. The decrease of interest-bearing debts was mainly due to the disposal of two solar power plants in Mexico.

First Quarter 2020 Operational Highlights

Solar Module Shipments

Total solar module shipments in the first quarter of 2020 were 3,411 MW.

Solar Products Production Capacity

As of March 31, 2020, the Company's in-house annual mono wafer, solar cell and solar module production capacity was 17.5 GW, ([1])10.6 GW (9.8 GW for PERC cells and 800 MW for N type cells) and 16 GW, respectively.



            Note 1:


                        In addition to the mono
                         wafer, our multi wafer
                         production capacity was
                         3.5 GW as of March 31,
                         2020.

Operations and Business Outlook

The guidance for total module shipment and capacity expansion of the Company remain unchanged. The Company expects that the COVID-19 outbreak will lead to a significant decrease in global demand, causing the decrease in the market price of solar modules.

Second Quarter and Full Year 2020 Guidance

The Company's business outlook is based on management's current views and estimates with respect to market conditions, production capacity, the Company's order book and the global economic environment. This outlook is subject to uncertainty on final customer demand and sale schedules. Management's views and estimates are subject to change without notice.

For the second quarter of 2020, the Company expects total solar module shipments to be in the range of 4.2 GW to 4.5 GW. Total revenue for the second quarter is expected to be in the range of US$1.10 billion to US$1.18 billion. Gross margin for the first quarter is expected to be between 16% and 18%.

For full year 2020, the Company estimates total solar module shipments to be in the range of 18 GW to 20 GW.

Solar Products Production Capacity

JinkoSolar expects its annual mono wafer, solar cell and solar module production capacity to reach 20.0 GW, 11.0 GW (including 900 MW N-type cells) and 25.0 GW, respectively, by the end of 2020.

Recent Business Developments

    --  In February 2020, JinkoSolar was awarded the "Top Brand PV Europe Seal
        2020" by EuPD Research, an internationally recognized research
        institute, for the second consecutive year.
    --  In March 2020, JinkoSolar's Tiger module hit 1GW in orders during the
        first three months after its launch.
    --  In March 2020, JinkoSolar's new N-type all black solar panel
        specifically developed for home installation generate a maximum output
        of 405 Wp and hit a 21.22% efficiency, enabling homeowners to fit more
        power capacity on rooftops than ever before.
    --  In March 2020, JinkoSolar's Board of Directors approved a share
        repurchase program which authorizes the Company to repurchase up to
        US$100 million of its ordinary shares represented by American depositary
        shares within twelve months.
    --  In March 2020, Mr. Xiande Li, Chairman of JinkoSolar's Board of
        Directors, completed purchase of 200,000 JinkoSolar's American
        depositary shares.
    --  In March 2020, JinkoSolar donated one million face masks and other
        protective equipment items to several countries severely affected by
        COVID-19 including Italy, Spain, Germany, France, Britain, Switzerland,
        South Korea, the Netherlands, Austria, Belgium, Turkey, Portugal and
        Norway.
    --  In April 2020, Jinko Solar Australia Holdings Co. Pty Ltd, a subsidiary
        of JinkoSolar, signed a one-year AUD37 million credit line agreement
        with the National Australia Bank.
    --  In April 2020, JinkoSolar announced favorable developments in patent
        litigation brought by Hanwha Q CELLS.
    --  In May 2020, JinkoSolar officially launched the 2020 flagship Tiger Pro
        module series.
    --  In May 2020, JinkoSolar was ranked as a Top Performer for the sixth
        consecutive year in the 2020 PV Module Reliability Scorecard published
        by PV Evolution Labs in partnership with DNV GL.

Conference Call Information

JinkoSolar's management will host an earnings conference call on Monday, June 15, 2020 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:                    
              55108006#

    ---

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, June 22, 2020. The dial-in details for the replay are as follows:



              International:                  
              +61 2 8325 2405

    ---


              U.S.:                           
              +1 646 982 0473

    ---


              Passcode:                 
              319334664#

    ---

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 17.5 GW for mono wafers, 10.6 GW for solar cells, and 16 GW for solar modules, as of March 31, 2020.

JinkoSolar has over 15,000 employees across its 7 productions facilities globally, 14 overseas subsidiaries in Japan, South Korea, Vietnam, India, Turkey, Germany, Italy, Switzerland, United States, Mexico, Brazil, Chile and Australia, and global sales teams in China, United Kingdom, France, Spain, Bulgaria, Greece, Ukraine, Jordan, Saudi Arabia, Tunisia, Morocco, Kenya, South Africa, Costa Rica, Colombia, Panama, Kazakhstan, Malaysia, Myanmar, Sri Lanka, Thailand, Vietnam, Poland 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, change in fair value of
        convertible senior notes and call option, interest expenses of
        convertible senior notes and call option, exchange (gain)/loss on the
        convertible senior notes and call option, and stock-based compensation
        (benefit)/expense; 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 issuance cost of convertible senior
        notes, change in fair value of convertible senior notes and call option,
        interest expenses of convertible senior notes and call option, exchange
        gain on the convertible senior notes and call option, and stock-based
        compensation. As the Non-GAAP net income is adjusted to exclude the
        change in fair value of call option, the dilutive impact of call option,
        if any, is also excluded from the denominator for the calculation of
        Non-GAAP earnings per share and non-GAAP earnings per ADS.

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 the update of ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): "Measurement of Credit Losses on Financial Instruments" on January 1, 2020.

Upon adoption of ASC 326 on January 1, 2020, the Company used the modified retrospective transition method through a RMB6.6 million cumulative-effect increase to retained earnings, among which RMB30.9 million was related to the decrease of allowance for accounts receivables-third parties, RMB15.0 million was related to the increase of allowance for accounts receivables- related parties and RMB9.3 million was related to the increase of allowance for other receivables and other current/non-current assets. The adoption of the new guidance did not have a material impact to the Company's consolidated financial statements.

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 31, 2020, which was RMB7.0808 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, 2019                 
              
                December 31, 2019       March 31, 2020

                                                                                                                                                                            ---

                                                                          
           RMB                                          
              RMB                  
     RMB              
     USD



               Revenues from third parties                                             5,677,227                                                    9,528,920          8,431,213         1,190,715





               Revenues from related parties                                             144,821                                                          538             52,710             7,444






               Total revenues                                                          5,822,048                                                    9,529,458          8,483,923         1,198,159





               Cost of revenues                                                      (4,857,711)                                                 (7,799,733)       (6,827,045)        (964,163)






               Gross profit                                                              964,337                                                    1,729,725          1,656,878           233,996





               Operating expenses:



                 Selling and marketing                                                 (459,314)                                                   (632,871)         (613,821)         (86,688)



                 General and administrative                                            (191,902)                                                   (342,048)         (238,594)         (33,696)



                 Research and development                                               (77,378)                                                    (91,740)          (71,784)         (10,138)



                 Impairment of long-lived assets                                               -                                                    (68,262)

                                                                                                                                                                                             ---


               Total operating expenses                                                (728,594)                                                 (1,134,921)         (924,199)        (130,522)





               Income from operations                                                    235,743                                                      594,804            732,679           103,474



               Interest expenses, net                                                   (96,110)                                                    (83,826)         (108,613)         (15,339)



               Subsidy income                                                              4,741                                                       14,366              5,061               716



               Exchange (loss)/gain                                                     (80,980)                                                    (14,003)            10,951             1,547



               Change in fair value of interest rate swap                               (30,199)                                                      24,466           (78,878)         (11,140)



               Change in fair value of foreign exchange                                   18,114                                                       91,889          (117,787)         (16,635)
    derivatives



               Change in fair value of convertible senior                                      -                                                    (67,119)            65,990             9,320
    notes and call option



               Other income/(expense), net                                                 7,398                                                        1,432            (2,187)            (309)



               Gain on disposal of subsidiaries                                                -                                                      19,935



               Income before income taxes                                                 58,707                                                      581,944            507,216            71,634



               Income tax benefit/(expense)                                                4,250                                                    (220,993)         (109,520)         (15,467)



               Equity in (loss)/gain of affiliated companies                            (23,709)                                                      31,780          (101,527)         (14,338)



               Net income                                                                 39,248                                                      392,731            296,169            41,829



               Less: Net (loss)/income attributable to                                     (939)                                                      23,225             13,728             1,939
    non-controlling
              interests




               Net income attributable to JinkoSolar                                      40,187                                                      369,506            282,441            39,890
     Holding Co., Ltd.'s ordinary shareholders






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



                 Basic                                                                      0.26                                                         2.08               1.58              0.22



                 Diluted                                                                    0.25                                                         1.67               0.67              0.09





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



                 Basic                                                                      1.02                                                         8.32               6.32              0.89



                 Diluted                                                                    1.02                                                         6.68               2.67              0.38





               Weighted average ordinary shares
    outstanding:



                 Basic                                                               156,888,381                                                  177,524,685        178,743,903       178,743,903



                 Diluted                                                             158,017,104                                                  171,509,296        198,081,276       198,081,276





               Weighted average ADS outstanding:



                 Basic                                                                39,222,095                                                   44,381,171         44,685,976        44,685,976



                 Diluted                                                              39,504,276                                                   42,877,324         49,520,319        49,520,319




                                                              
         
             UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME





               Net income                                                                 39,248                                                      392,731            296,169            41,829



               Other comprehensive income:



                 -Foreign currency translation                                          (17,459)                                                    (21,970)            45,040             6,361
    adjustments



                 -Change in the instrument-specific                                            -                                                    (26,579)            39,202             5,536
    credit risk

                                                                                                                                                                                             ---


               Comprehensive income                                                       21,789                                                      344,182            380,411            53,726



               Less: Comprehensive (loss)/income                                           (939)                                                      23,225             13,728             1,939
    attributable to non-controlling interests



               Comprehensive income attributable to                                       22,728                                                      320,957            366,683            51,787
    JinkoSolar Holding Co., Ltd.'s ordinary
    shareholders






               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                                   40,187                                                      369,506            282,441            39,890
    shareholders





               Change in fair value of convertible senior                                      -                                                      67,119           (65,990)          (9,320)
    notes and call option





               Net interest expenses of convertible                                            -                                                       6,281              6,128               865
    senior notes and call option





               Exchange (gain)/loss on convertible                                             -                                                     (4,112)             4,664               659
    senior notes and call option





               Stock-based compensation                                                  (6,924)                                                     (6,630)               249                35
    (benefit)/expense






               Non-GAAP net income attributable to                                        33,263                                                      432,164            227,492            32,129
    ordinary shareholders






               Non-GAAP earnings per share
    attributable to ordinary shareholders -



                 Basic                                                                      0.21                                                         2.43               1.27              0.18



                 Diluted                                                                    0.21                                                         2.43               1.15              0.16





               Non-GAAP earnings per ADS attributable
    to ordinary shareholders -



                 Basic                                                                      0.85                                                         9.74               5.09              0.72



                 Diluted                                                                    0.84                                                         9.74               4.59              0.65





               Non-GAAP weighted average ordinary
    shares outstanding



                 Basic                                                               156,888,381                                                  177,524,685        178,743,903       178,743,903



                 Diluted                                                             158,017,104                                                  177,524,685        198,081,276       198,081,276





               Non-GAAP weighted average ADS
    outstanding



                 Basic                                                                39,222,095                                                   44,381,171         44,685,976        44,685,976



                 Diluted                                                              39,504,276                                                   44,381,171         49,520,319        49,520,319


                                                                               
        
               JINKOSOLAR HOLDING CO., LTD.


                                                                             
      
         UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS


                                                                                  
           
                (in thousands)


                                                                                                       
              
                December 31, 2019       March 31, 2020

                                                                                                                                                                  ---

                                                                                                                     
              RMB                 
     RMB              
     USD



              ASSETS



              Current assets:



                Cash and cash equivalents                                                                                                5,653,854          3,947,853        557,543



                Restricted cash                                                                                                            576,546            793,056        112,001



                Restricted short-term investments                                                                                        6,930,502          7,264,341      1,025,921



                Accounts receivable, net - related parties                                                                                 520,504            554,836         78,358



                Accounts receivable, net - third parties                                                                                 5,266,351          5,312,745        750,303



                Notes receivable, net - related parties                                                                                     18,629             18,629          2,631



                Notes receivable, net - third parties                                                                                    1,529,801          1,602,390        226,301



                Advances to suppliers, net - third parties                                                                               2,522,373          2,280,476        322,065



                Inventories, net                                                                                                         5,818,789          7,147,762      1,009,457



                Forward contract receivables                                                                                                52,281                                -



                Prepayments and other current assets, net - related parties                                                                 54,318             52,442          7,406



                Prepayments and other current assets, net                                                                                1,573,482          1,816,529        256,542



                Held-for-sale assets                                                                                                     1,170,818                                -



              Total current assets                                                                                                      31,688,248         30,791,059      4,348,528





              Non-current assets:



                Restricted cash                                                                                                            531,158            643,549         90,886



                Accounts receivable, net - third parties                                                                                         -            28,848          4,074



                Project Assets                                                                                                             798,243            818,041        115,529



                Long-term investments                                                                                                      278,021            159,710         22,555



                Property, plant and equipment, net                                                                                      10,208,205         10,657,193      1,505,083



                Land use rights, net                                                                                                       597,922            668,205         94,369



                Intangible assets, net                                                                                                      36,395             37,167          5,249



                Financing lease right-of-use assets, net                                                                                 1,259,713          1,219,385        172,210



                Operating lease right-of-use assets, net                                                                                   317,904            284,722         40,210



                Deferred tax assets                                                                                                        271,286            271,286         38,313



                Call Option-concurrent with issuance of convertible                                                                        294,178            197,276         27,861
      senior notes



                Other assets, net - related parties                                                                                         96,753             98,048         13,847



                Other assets, net - third parties                                                                                        1,466,692          1,359,510        192,000



              Total non-current assets                                                                                                  16,156,470         16,442,940      2,322,186





              Total assets                                                                                                              47,844,718         47,233,999      6,670,714






              LIABILITIES



              Current liabilities:



                Accounts payable - related parties                                                                                          36,310                                -



                Accounts payable - third parties                                                                                         4,952,630          5,465,796        771,918



                Notes payable - third parties                                                                                            7,518,570          7,489,024      1,057,652



                Accrued payroll and welfare expenses                                                                                       879,465            780,786        110,268



                Advances from related parties                                                                                                  749                752            106



                Advances from  third parties                                                                                             4,350,380          3,507,328        495,329



                Income tax payable                                                                                                         117,422            123,957         17,506



                Other payables and accruals                                                                                              3,055,928          3,195,399        451,279



                Other payables due to related parties                                                                                       13,127             13,381          1,890



                Forward contract payables                                                                                                    3,857             90,564         12,790



                Financing lease liabilities - current                                                                                      227,613            243,253         34,354



                Operating lease liabilities - current                                                                                       40,043             38,636          5,456



                Short-term borrowings from third parties,                                                                                9,047,250          9,701,037      1,370,048
         including current portion of long-term bank
         borrowings



                Guarantee liabilities to related parties                                                                                    25,688             23,776          3,358



                Held-for-sale liabilities                                                                                                1,008,196                                -



              Total current liabilities                                                                                                 31,277,228         30,673,689      4,331,954





              Non-current liabilities:



                Long-term borrowings                                                                                                     1,586,187          1,521,730        214,909



                Convertible senior notes                                                                                                   728,216            532,111         75,148



                Accrued warranty costs - non current                                                                                       651,968            671,556         94,842



                Financing lease liabilities                                                                                                583,491            502,334         70,943



                Operating lease liabilities                                                                                                279,534            246,434         34,803



                Deferred tax liability                                                                                                     250,734            250,734         35,410



                Guarantee liabilities to related parties                                                                                    46,332             44,409          6,272
       - non current



              Total non-current liabilities                                                                                              4,126,462          3,769,308        532,327





              Total liabilities                                                                                                         35,403,690         34,442,997      4,864,281






              SHAREHOLDERS' EQUITY



              Ordinary shares (US$0.00002 par value, 500,000,000 shares                                                                         25                 25              4
    authorized, 180,653,497 and 179,430,857 shares issued as of
    December 31, 2019 and March 31, 2020, respectively)



              Additional paid-in capital                                                                                                 4,582,850          4,583,099        647,257



              Statutory reserves                                                                                                           689,707            689,707         97,405



              Accumulated other comprehensive income                                                                                        62,952            147,194         20,787



              Treasury stock, at cost; 1,723,200 and 2,945,840 ordinary                                                                   (13,876)          (43,170)       (6,097)
    shares as of  December 31, 2019 and March 31, 2020,
    respectively



              Accumulated retained earnings                                                                                              3,981,661          4,270,710        603,139






              Total JinkoSolar Holding Co., Ltd. shareholders' equity                                                                    9,303,319          9,647,565      1,362,495






              Non-controlling interests                                                                                                  3,137,709          3,143,437        443,938





              Total liabilities and shareholders' equity                                                                                47,844,718         47,233,999      6,670,714

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SOURCE JinkoSolar Holding Co., Ltd.