JinkoSolar Announces Third Quarter 2020 Financial Results

SHANGRAO, China, Dec. 7, 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 third quarter ended September 30, 2020.

Strategic Business Updates

    --  Technological transformation towards high-efficiency product portfolio
        now complete:

- Mono wafer production capacity has been fully ramped up to 20GW
- Mono based high efficiency products expected to account for nearly 100% of solar module shipments in 2020, compared to 74% in 2019

    --  Next-generation high-efficiency Tiger Pro Modules well received by the
        market with secured orders exceeding 2 GW as of the end of October
    --  Industry consolidation accelerating at the backdrop of a challenging
        macroeconomic environment. Market share of JinkoSolar projected to
        further step up to approximately 15% for full year 2020, compared to
        approximately 12% in 2019
    --  Successfully maintained stable margin performance despite recent supply
        shortage of major raw materials, thanks to stringent cost control and
        resilient supply management
    --  Further policy tailwinds from major economies such as China and the US
        underpins strong future solar demand outlook
    --  Principal operating subsidiary Jinko Solar Co., Ltd raised approximately
        US$458 million in preparation for its listing on the STAR market

Third Quarter 2020 Operational and Financial Highlights

    --  Quarterly shipments were 5,117MW, up 53.8% year over year
    --  Total revenues were US$1.29 billion, up 17.2 % year over year
    --  Gross profit was US$220.2 million, up 8.2% year over year ([1])
    --  Gross margin of 17.0%, compared with 17.9% in Q2 2020 and 18.5%([2]) in
        Q3 2019
    --  Income from operations of US$80.4 million, up 27.9 % year over year([3])
    --  Non-GAAP net income of US$47.3 million, up 6.7% year over year
    --  Net income of US$1.0 million, due to US$46.1 million loss of change in
        fair value of convertible senior notes and call option, given the sharp
        rise in stock price for the third quarter.

                        [1] Calculation of year over year
                         growth was based on total revenue
                         excluding the reversal benefit of
                         anti-dumping (AD) and
                         countervailing duty (CVD)


                        [2] Gross margin excluding the
                         reversal benefit of anti-dumping
                         (AD) and countervailing duty (CVD)


                        [3] Calculation of year over year
                         growth was based on income from
                         operations excluding the reversal
                         benefit of anti-dumping (AD) and
                         countervailing duty (CVD)

Mr. Kangping Chen, JinkoSolar's Chief Executive Officer, commented, "JinkoSolar delivered solid results for the quarter with total revenue, total solar module shipments and gross margin all within our guidance range. Module shipments reached a new high of 5,117 MW, an increase of 14.5% sequentially and 53.8% year-over-year. Total revenue during the quarter were US$1.29 billion, an increase of 3.8% sequentially and 17.2% year-over-year, while gross profit was US$220.2 million. For the full year 2020, we expect total solar module shipments to be in the range of 18.5 GW to 19 GW. By the end of 2020, we expect our in-house annual monocrystalline silicon wafer, solar cell and module production capacity to reach 20 GW, 11 GW and 30 GW, respectively."

"Even though we faced some pressures this quarter due to the shortage of raw materials which increased production costs, coupled with the impact of US dollar fluctuations and higher logistics and transportation costs, we have approached these issues proactively in a few ways. We managed to ensure the stable supply of core raw materials and auxiliary materials through long-term purchase agreements, strategic cooperation, and our R&D team identified and applied substitute materials to help ease supply chain volatility."

"With the approach of grid parity, leading companies will become more competitively positioned and benefit the most from technological advancement, sophisticated R&D, well-established distribution channels and cost reductions in the PV industry. In this scenario, the industry stands to gain from the positive effect of top players continuously striving for technical innovation and product iterations, which will further promote the growth of the supply chain."

"We strongly believe that the PV industry has ushered in a golden age, together with strong support from government policies to adopt renewable energy, promote grid transformation and green investments. In the U.S., solar demand is expected to more than double over the next five years under the Biden administration. In Europe, the EU has officially announced plans to increase the GHG reduction target from 40% to at least 60% below 1990 levels by 2030. In China, we are expecting the next 14(Th) Five-Year Energy Plan to focus on non-fossil energy sources with higher proportions of renewable energy, construction plans for large-scale energy storage and grid transformation, and the introduction of supporting policies."

"Solar power has had the largest cost reduction in recent years, and we believe there is more room for growth next year. We are well positioned to capitalize on the accelerating global demand for clean energy and the expected rapid growth in shipments in 2021. We are constantly evaluating all our production lines to increase production capacity and ensure appropriate integrated production level accordingly to continue to offer high quality products and reinforce our leading position in the global PV industry."

Third Quarter 2020 Financial Results

Total Revenues

Total revenues in the third quarter of 2020 were RMB8.77 billion (US$1.29 billion), an increase of 3.8% from RMB8.45 billion in the second quarter of 2020 and an increase of 17.2% from RMB7.48 billion in the third quarter of 2019. The sequential increase was mainly attributable to an increase in the shipment of solar modules partially offset by a decline in the average selling price of solar modules. 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 third quarter of 2020 was RMB1.49 billion (US$220.2 million), compared with RMB1.51 billion in the second quarter of 2020 and RMB1.59 billion in the third quarter of 2019 (or RMB1.38 billion if excluding the impact from the Countervailing Duty ("CVD") and Anti-dumping Duty ("ADD") reversal benefit). The sequential decrease was mainly attributable to a decline in the average selling price of solar modules. The year-over-year increase (excluding the impact from CVD and ADD reversal benefit in the third quarter of 2019) 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 17.0% in the third quarter of 2020, compared with 17.9% in the second quarter of 2020 and 21.3% in the third quarter of 2019 (or 18.5% if excluding the impact from the CVD and ADD reversal benefit).The sequential and year-over-year decrease was mainly attributable to a decline in the average selling price of solar modules due to the intensified global market competition of solar modules.

Income from Operations and Operating Margin

Income from operations in the third quarter of 2020 was RMB546.0 million (US$80.4 million), compared with RMB434.7 million in the second quarter of 2020 and RMB638.8 million in the third quarter of 2019 (or RMB426.8 million if excluding the impact from CVD and ADD reversal benefit).

Operating margin was 6.2% in the third quarter of 2020, compared with 5.1% in the second quarter of 2020 and 8.5% in the third quarter of 2019 (or 5.7% if excluding the impact from CVD and ADD reversal benefit).

Total operating expenses in the third quarter of 2020 were RMB948.9 million (US$139.8 million), a decrease of 12.0% from RMB1.08 billion in the second quarter of 2020 and a decrease of 0.6% from RMB955.0 million in the third quarter of 2019. The sequential decrease was mainly attributable to a decrease in warranty cost.

Total operating expenses accounted for 10.8% of total revenues in the third quarter of 2020, compared to 12.8% in the second quarter of 2020 and 12.8% in the third quarter of 2019.

Interest Expense, Net

Net interest expense in the third quarter of 2020 was RMB129.2 million (US$19.0 million), an increase of 21.6% from RMB106.2 million in the second quarter of 2020 and an increase of 36.2% from RMB94.9 million in the third quarter of 2019. The sequential and year-over-year increases were mainly due to an increase in interest expense with the increase of interest-bearing debts.

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 RMB63.9 million (US$9.4 million) in the third quarter of 2020, compared to a net exchange gain of RMB69.7 million in the second quarter of 2020 and a net exchange loss of RMB130.7 million in the third quarter of 2019. The net exchange loss was mainly due to the depreciation of the U.S. dollars against the RMB in the third quarter of 2020.

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 loss from a change in fair value of the Notes of RMB593.7 million (US$87.4 million) in the third quarter of 2020, compared to a loss of RMB89.2 million in the second quarter of 2020. The change was primarily due to an increase in the Company's stock price in the third 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 gain from a change in fair value of the call option of RMB280.7 million (US$41.3 million) in the third quarter of 2020, compared to a gain of RMB38.0 million in the second quarter of 2020. The change was primarily due to an increase in the Company's stock price in the third quarter of 2020.

Equity in Gain/(Loss) of Affiliated Companies

The Company indirectly holds a 20% equity interest in Sweihan PV Power Company P.J.S.C, a developer and operator of solar power projects in Dubai, and accounts for its investment using the equity method. The Company also holds a 30% equity interest in Jiangsu Jinko-Tiansheng Co., Ltd, which processes and assembles PV modules as an OEM manufacturer, and accounts for its investments using the equity method. The Company recorded equity in gain of affiliated companies of RMB24.7 million (US$3.6 million) in the third quarter of 2020, compared with a gain of RMB4.2 million in the second quarter of 2020 and a loss of RMB28.3 million in the third quarter of 2019. The gain primarily arose from revenue generated from operations in the third quarter of 2020.

Income Tax Expenses

The Company recorded an income tax expense of RMB69.2 million (US$10.2 million) in the third quarter of 2020, compared with an income tax expense of RMB22.8 million in the second quarter of 2020 and an income tax expense of RMB117.2 million in the third quarter of 2019. The sequential increase was mainly due to additional 2019 income tax deduction for R&D costs approved by the local tax bureau in the second quarter of 2020. The year-over-year change was mainly due to lower profit generated in the third quarter of 2020 compared to the third quarter of 2019.

Net Income and Earnings/(loss) per Share

Net income attributable to the Company's ordinary shareholders was RMB6.9 million (US$1.0 million) in the third quarter of 2020, compared with RMB318.0 million in the second quarter of 2020 and RMB 363.6 million in the third quarter of 2019.

Basic earnings per ordinary share and diluted loss per ordinary share were RMB0.04 (US$0.01) and RMB1.55 (US$0.23), respectively, during the third quarter of 2020. This translates into basic earnings per ADS and diluted loss per ADS of RMB0.16 (US$0.02) and RMB6.20 (US$0.91), respectively.

Non-GAAP net income attributable to the Company's ordinary shareholders in the third quarter of 2020 was RMB321.4 million (US$47.3 million), compared with RMB376.1 million in the second quarter of 2020 and RMB 301.2 million in the third quarter of 2019.

Non-GAAP basic and diluted earnings per ordinary share were RMB1.81 (US$0.27), during the third quarter of 2020. This translates into non-GAAP basic and diluted earnings per ADS of RMB7.22 (US$1.06).

Financial Position

As of September 30, 2020, the Company had RMB6.40 billion (US$943.3 million) in cash and cash equivalents and restricted cash, compared with RMB6.85 billion as of June 30, 2020.

As of September 30, 2020, the Company's accounts receivables due from third parties were RMB5.15 billion (US$758.1 million), compared with RMB5.90 billion as of June 30, 2020.

As of September 30, 2020, the Company's inventories were RMB7.72 billion (US$1.14 billion), compared with RMB6.89 billion as of June 30, 2020.

As of September 30, 2020, the Company's total interest-bearing debts were RMB17.21 billion (US$2.53 billion), of which RMB874.1 million (US$128.7 million) was related to the Company's overseas downstream solar projects, compared with RMB16.5 billion, of which RMB908.6 million was related to the Company's overseas downstream solar projects as of June 30, 2020.

Third Quarter 2020 Operational Highlights

Solar Module Shipments

Total solar module shipments in the third quarter of 2020 were 5,117 MW.

Solar Products Production Capacity

As of September 30, 2020, the Company's in-house annual mono wafer([4]), solar cell and solar module production capacity was 20 GW, 11GW (10.2 GW for PERC cells and 800 MW for N type cells) and 25 GW, respectively.



              Note:


               In addition to the mono
                wafer, our multi wafer
                production capacity was 3.5
                GW as of September 30,
                2020[4]

Operations and Business Outlook

We are expecting significant increase in demand next year and bottleneck of raw materials in the third and fourth quarter this year is expected to gradually improve.

Fourth 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 fourth quarter of 2020, the Company expects total solar module shipments to be in the range of 5.5 GW to 6.0 GW. Total revenue for the fourth quarter is expected to be in the range of US$1.31 billion to US$1.43 billion. Gross margin for the fourth quarter is expected to be between 13% and 15%.

For full year 2020, the Company estimates total solar module shipments to be in the range of 18.5 GW to 19 GW.

Solar Products Production Capacity

JinkoSolar expects its annual mono wafer, solar cell and solar module production capacity to reach 20 GW, 11 GW (including 800 MW N-type cells) and 30 GW, respectively, by the end of 2020.

Recent Business Developments

    --  In August 2020, JinkoSolar signed a contract with Shanghai Electric to
        supply approximately 1 GW of solar modules for Phase V of the Dubai
        Electricity and Water Authority Solar Park.
    --  In August 2020, JinkoSolar was ranked as a top solar brand in debt
        financed projects and named a most "bankable" PV manufacturer by
        Bloomberg New Energy Finance.
    --  In September 2020, JinkoSolar was ranked as a top manufacturer in
        Silicon Valley Toxics Coalition's latest Solar Scorecard.
    --  In September 2020, JinkoSolar announced that it had supplied Trung Nam
        Group with 611MW of Tiger bifacial transparent backsheet modules, which
        were installed at the Thuan Nam solar power plant project in Vietnam.
    --  In September 2020, JinkoSolar announced intention to cooperate with
        ENEOS Corporation, Japan's largest oil refiner, on the provision of
        solar modules for a Virtual Power Plant project.
    --  In September 2020, JinkoSolar was invited as a speaker to The Climate
        Week NYC, which is the biggest climate summit in 2020, organized by the
        Climate Group and hosted in association with the United Nations and the
        City of New York.
    --  In September 2020, JinkoSolar's board of directors approved a strategic
        plan to access China's capital markets through its principal operating
        subsidiary Jinko Solar Co., Ltd.
    --  In October 2020, JinkoSolar signed a Module Supply Agreement for the
        Kozani project in the north of Greece, which had been developed by juwi
        Hellas Renewable Energy Sources S.A.

Conference Call Information

JinkoSolar's management will host an earnings conference call on Monday, December 7, 2020. at 7:30 a.m. U.S. Eastern Time (8:30 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:                    
              27311972#

    ---

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, December 14, 2020. The dial-in details for the replay are as follows:



              International:                  
              +61 2 8325 2405

    ---


              U.S.:                           
              +1 646 982 0473

    ---


              Passcode:                 
              319339095#

    ---

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 20 GW for mono wafers, 11 GW for solar cells, and 25 GW for solar modules, as of September 30, 2020.

JinkoSolar has 9 productions facilities globally, 21 overseas subsidiaries in Japan, South Korea, Vietnam, India, Turkey, Germany, Italy, Switzerland, United States, Mexico, Brazil, Chile, Australia, Portugal, Canada, Malaysia, UAE, Kenya, Hong Kong, Denmark, 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, as of September 30, 2020.

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 convertible senior notes and call option:

    --  Non-GAAP net income is 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)/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 September 30, 2020, which was RMB6.7896 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

Rene Vanguestaine
Christensen
Tel: + 86 178 1749 0483
Email: rvanguestaine@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                               
              For the nine months ended


                                                      
     
         September 30, 2019        June 30, 2020                                September 30, 2020               
              
          September 30, 2019                        September 30, 2020

                                                                                                                                                                                                                                                 ---

                                                          
        RMB                  
     RMB                                   
              RMB                                      
        USD                   
     RMB                                     
     RMB               
     USD



               Revenues from third parties                               7,473,562          8,448,719                                          8,768,376                                  1,291,442                   20,063,090                             25,648,308            3,777,587





               Revenues from related parties                                 8,194              1,943                                              1,919                                        283                      153,740                                 56,573                8,332






               Total revenues                                            7,481,756          8,450,662                                          8,770,295                                  1,291,725                   20,216,830                             25,704,881            3,785,919





               Cost of revenues                                        (5,888,015)       (6,937,720)                                       (7,275,366)                               (1,071,546)                (16,514,869)                          (21,040,132)         (3,098,877)






               Gross profit                                              1,593,741          1,512,942                                          1,494,929                                    220,179                    3,701,961                              4,664,749              687,042





               Operating expenses:



                 Selling and marketing                                   (596,192)         (709,189)                                         (498,221)                                  (73,380)                 (1,617,465)                           (1,821,234)           (268,238)



                 General and administrative                              (276,699)         (294,452)                                         (345,228)                                  (50,847)                   (716,977)                             (878,274)           (129,356)



                 Research and development                                 (82,059)          (74,643)                                         (105,445)                                  (15,530)                   (232,695)                             (251,872)            (37,097)




               Total operating expenses                                  (954,950)       (1,078,284)                                         (948,894)                                 (139,757)                 (2,567,137)                           (2,951,380)           (434,691)





               Income from operations                                      638,791            434,658                                            546,035                                     80,422                    1,134,824                              1,713,369              252,351



               Interest expenses, net                                     (94,892)         (106,239)                                         (129,221)                                  (19,032)                   (307,756)                             (344,073)            (50,676)



               Subsidy income                                               33,394             14,379                                             62,839                                      9,255                       48,651                                 82,279               12,118



               Exchange gain/(loss)                                         16,304             51,616                                          (175,650)                                  (25,870)                      22,811                              (113,084)            (16,655)



               Change in fair value of interest rate                      (18,123)                                                                                                                                  (94,440)                              (78,878)            (11,617)
    swap



               Change in fair value of foreign                           (146,998)            18,133                                            111,710                                     16,453                    (170,503)                                12,057                1,776
    exchange derivatives



               Convertible senior notes issuance                                 -                                                                                                                                  (18,646)
    costs



               Change in fair value of convertible                          82,932           (51,165)                                         (312,992)                                  (46,099)                      37,862                              (298,167)            (43,915)
    senior notes and call option



               Other income/(expense), net                                   1,742              2,127                                            (1,409)                                     (208)                      16,442                                (1,469)               (216)



               Income before income taxes                                  513,150            363,509                                            101,312                                     14,921                      669,245                                972,034              143,166



               Income tax expense                                        (117,152)          (22,754)                                          (69,226)                                  (10,196)                    (56,986)                             (201,499)            (29,678)



               Equity in (loss)/gain of affiliated                        (28,305)             4,211                                             24,704                                      3,639                     (80,635)                              (72,612)            (10,695)
    companies



               Net income                                                  367,693            344,966                                             56,790                                      8,364                      531,624                                697,923              102,793



               Less: Net income attributable to non-                         4,129             26,923                                             49,937                                      7,355                        2,465                                 90,588               13,342
    controlling
              interests



               Net income attributable to JinkoSolar                       363,564            318,043                                              6,853                                      1,009                      529,159                                607,335               89,451
     Holding Co., Ltd.'s ordinary
    shareholders






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



                 Basic                                                        2.06               1.79                                               0.04                                       0.01                         3.18                                   3.41                 0.50



                 Diluted                                                      1.17               1.64                                             (1.55)                                    (0.23)                        3.01                                   2.28                 0.34





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



                 Basic                                                        8.25               7.16                                               0.16                                       0.02                        12.70                                  13.64                 2.01



                 Diluted                                                      4.66               6.55                                             (6.20)                                    (0.91)                       12.03                                   9.14                 1.35





               Weighted average ordinary shares
    outstanding:



                 Basic                                                 176,336,307        177,718,162                                        177,992,073                                177,992,073                  166,612,951                            178,150,798          178,150,798



                 Diluted                                               196,544,769        170,989,776                                        170,492,073                                170,492,073                  177,583,926                            172,045,324          172,045,324





               Weighted average ADS outstanding:



                 Basic                                                  44,084,077         44,429,541                                         44,498,018                                 44,498,018                   41,653,238                             44,537,699           44,537,699



                 Diluted                                                49,136,192         42,747,444                                         42,623,018                                 42,623,018                   44,395,981                             43,011,331           43,011,331




                                                                                                 
          
             UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME





               Net income                                                  367,693            344,966                                             56,790                                      8,364                      531,624                                697,923              102,793



               Other comprehensive income/(loss):



                 -Foreign currency translation                               (666)            30,442                                          (100,718)                                  (14,834)                      41,144                               (64,438)             (9,491)
    adjustments



                 -Change in the instrument-specific                          5,546           (52,681)                                          (36,727)                                   (5,409)                          57                               (11,004)             (1,621)
    credit risk




               Comprehensive income/(loss)                                 372,573            322,727                                           (80,655)                                  (11,879)                     572,825                                622,481               91,681



               Less: Comprehensive income                                    4,129             26,923                                             49,937                                      7,355                        2,465                                 90,588               13,342
    attributable to non-controlling
    interests



               Comprehensive income/(loss)                                 368,444            295,804                                          (130,592)                                  (19,234)                     570,360                                531,893               78,339
    attributable to 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                             363,564            318,043                                              6,853                                      1,009                      529,159                                607,335               89,451
    ordinary shareholders





               Convertible senior notes issuance                                 -                                                                                                                                    18,646
    costs





               Change in fair value of convertible                        (82,932)            51,165                                            312,992                                     46,099                     (37,862)                               298,167               43,915
    senior notes and call option





               Net interest expenses of convertible                          6,190              6,734                                              7,217                                      1,063                        9,103                                 20,078                2,957
    senior notes and call option





               Exchange loss/(gain) on convertible                           7,834              (291)                                           (5,904)                                     (870)                       7,114                                (1,531)               (225)
    senior notes and call option





               Stock-based compensation expense                              6,546                423                                                194                                         29                       11,208                                    866                  128






               Non-GAAP net income attributable to                         301,202            376,074                                            321,352                                     47,330                      537,368                                924,915              136,226
    ordinary shareholders






               Non-GAAP earnings per share
    attributable to ordinary shareholders -



                 Basic                                                        1.71               2.12                                               1.81                                       0.27                         3.23                                   5.19                 0.77



                 Diluted                                                      1.53               2.12                                               1.81                                       0.27                         3.03                                   5.19                 0.77





               Non-GAAP earnings per ADS
    attributable to ordinary shareholders -



                 Basic                                                        6.83               8.46                                               7.22                                       1.06                        12.90                                  20.77                 3.06



                 Diluted                                                      6.13               8.46                                               7.22                                       1.06                        12.10                                  20.77                 3.06





               Non-GAAP weighted average
    ordinary shares outstanding



                 Basic                                                 176,336,307        177,718,162                                        177,992,073                                177,992,073                  166,612,951                            178,150,798          178,150,798



                 Diluted                                               196,544,769        177,718,162                                        177,992,073                                177,992,073                  177,583,926                            178,150,798          178,150,798





               Non-GAAP weighted average ADS
    outstanding



                 Basic                                                  44,084,077         44,429,541                                         44,498,018                                 44,498,018                   41,653,238                             44,537,700           44,537,700



                 Diluted                                                49,136,192         44,429,541                                         44,498,018                                 44,498,018                   44,395,982                             44,537,700           44,537,700


                                                                           
         
              JINKOSOLAR HOLDING CO., LTD.


                                                                         
       
         UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS


                                                                               
          
                (in thousands)


                                                                                             
              
                December 31, 2019      September 30, 2020

                                                                                                                                                           ---

                                                                                                           
              RMB                 
      RMB                
     USD



              ASSETS



              Current assets:



                Cash and cash equivalents                                                                                      5,653,854             5,774,669        850,517



                Restricted cash                                                                                                  576,546               630,173         92,814



                Restricted short-term investments                                                                              6,930,502             6,378,336        939,427



                Accounts receivable, net - related parties                                                                       520,504               444,109         65,410



                Accounts receivable, net - third parties                                                                       5,266,351             5,147,038        758,077



                Notes receivable, net - related parties                                                                           18,629                38,629          5,689



                Notes receivable, net - third parties                                                                          1,529,801             2,132,749        314,120



                Advances to suppliers, net - third parties                                                                     2,522,373             2,025,944        298,389



                Inventories, net                                                                                               5,818,789             7,722,269      1,137,367



                Forward contract receivables                                                                                      52,281                38,962          5,738



                Prepayments and other current assets, net - related                                                               54,318                51,403          7,571
    parties



                Prepayments and other current assets, net                                                                      1,573,482             1,933,857        284,826



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



              Total current assets                                                                                            31,688,248            32,318,138      4,759,945





              Non-current assets:



                Restricted cash                                                                                                  531,158               966,780        142,391



                Accounts receivable, net - third parties                                                                               -               27,278          4,018



                Project Assets                                                                                                   798,243               773,051        113,858



                Long-term investments                                                                                            278,021               173,382         25,536



                Property, plant and equipment, net                                                                            10,208,205            11,718,902      1,726,008



                Land use rights, net                                                                                             597,922               717,477        105,673



                Intangible assets, net                                                                                            36,395                36,746          5,412



                Financing lease right-of-use assets, net                                                                       1,259,713               941,833        138,717



                Operating lease right-of-use assets, net                                                                         317,904               261,660         38,538



                Deferred tax assets                                                                                              271,286               271,286         39,956



                Call Option - concurrent with issuance of convertible                                                            294,178               507,693         74,775
      senior notes



                Other assets, net - related parties                                                                               96,753               100,369         14,783



                Other assets, net - third parties                                                                              1,466,692             1,198,296        176,490



              Total non-current assets                                                                                        16,156,470            17,694,753      2,606,155





              Total assets                                                                                                    47,844,718            50,012,891      7,366,100






              LIABILITIES



              Current liabilities:



                Accounts payable - related parties                                                                                36,310                33,192          4,889



                Accounts payable - third parties                                                                               4,952,630             4,855,246        715,100



                Notes payable - third parties                                                                                  7,518,570             8,043,194      1,184,634



                Accrued payroll and welfare expenses                                                                             879,465               839,161        123,595



                Advances from related parties                                                                                        749                                   -



                Advances from  third parties                                                                                   4,350,380             2,349,284        346,012



                Income tax payable                                                                                               117,422                87,394         12,872



                Other payables and accruals                                                                                    3,055,928             3,201,154        471,477



                Other payables due to related parties                                                                             13,127                12,909          1,901



                Forward contract payables                                                                                          3,857                   597             88



                Convertible senior notes - current                                                                                     -            1,241,768        182,893



                Financing lease liabilities - current                                                                            227,613               209,447         30,848



                Operating lease liabilities - current                                                                             40,043                37,858          5,576



                Short-term borrowings from third parties,                                                                      9,047,250            10,145,388      1,494,254
         including current portion of long-term bank
         borrowings



                Guarantee liabilities to related parties                                                                          25,688                22,946          3,380



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



              Total current liabilities                                                                                       31,277,228            31,079,538      4,577,519





              Non-current liabilities:



                Long-term borrowings                                                                                           1,586,187             4,906,232        722,610



                Convertible senior notes                                                                                         728,216                                   -



                Accrued warranty costs - non current                                                                             651,968               762,779        112,345



                Financing lease liabilities                                                                                      583,491               441,949         65,092



                Operating lease liabilities                                                                                      279,534               224,398         33,050



                Deferred tax liability                                                                                           250,734               250,734         36,929



                Guarantee liabilities to related parties                                                                          46,332                37,891          5,581
       - non current



              Total non-current liabilities                                                                                    4,126,462             6,623,983        975,607





              Total liabilities                                                                                               35,403,690            37,703,521      5,553,126






              SHAREHOLDERS' EQUITY



              Ordinary shares (US$0.00002 par value, 500,000,000                                                                      25                    25              4
    shares authorized, 180,653,497 and 183,993,437 shares
    issued as of December 31, 2019 and September 30, 2020,
    respectively)



              Additional paid-in capital                                                                                       4,582,850             4,641,661        683,643



              Statutory reserves                                                                                                 689,707               689,707        101,583



              Accumulated other comprehensive income                                                                              62,952              (12,490)       (1,840)



              Treasury stock, at cost; 1,723,200 and 2,945,840 ordinary                                                         (13,876)             (43,170)       (6,358)
    shares as of  December 31, 2019 and September 30,
    2020, respectively



              Accumulated retained earnings                                                                                    3,981,661             4,595,604        676,859






              Total JinkoSolar Holding Co., Ltd. shareholders' equity                                                          9,303,319             9,871,337      1,453,891






              Non-controlling interests                                                                                        3,137,709             2,438,033        359,083





              Total liabilities and shareholders' equity                                                                      47,844,718            50,012,891      7,366,100

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SOURCE JinkoSolar Holding Co., Ltd.