JinkoSolar Repurchased 1,753,178 ADSs under Its Share Repurchase Program

Rhea-AI Summary

JinkoSolar Holding Co., announces the repurchase of 788,178 American depositary shares worth $18.4 million in the open market under its extended share repurchase program. The company has repurchased a total of 1,753,178 ADSs amounting to $46.8 million under its share repurchase programs. The extended program, running until June 30, 2025, has $153.2 million of ordinary shares yet to be utilized.

Insights

Financial Analyst

JinkoSolar's recent announcement of repurchasing American depositary shares (ADSs) sends a signal to the market about the company's self-assessment of its stock value. Share buybacks often suggest that a company believes its shares are undervalued and represent a good investment. From a financial perspective, this can be a double-edged sword. On one hand, it can boost shareholder value by reducing the number of shares outstanding, potentially increasing earnings per share (EPS). On the other hand, it may indicate that the company does not have profitable reinvestment opportunities, which could be a concern for future growth.

Investors should also consider the impact of buybacks on a company's balance sheet. JinkoSolar's use of cash for repurchases reduces its cash reserves, which could limit flexibility in operations or investments. However, if the repurchase is executed at a price truly below intrinsic value, it can be accretive to the valuation of remaining shares. The market's response to such news will vary, but generally, a well-timed buyback can be a positive sign to investors looking for capital appreciation.

Market Research Analyst

From a market research standpoint, JinkoSolar's repurchase program may reflect broader industry trends. The solar energy sector is highly competitive and capital intensive. Companies in this sector need to manage investor expectations and confidence carefully. By repurchasing shares, JinkoSolar could be attempting to stabilize its stock price in a volatile market, especially if the sector is experiencing turbulence due to policy changes or fluctuating demand.

Additionally, investors should consider the timing of the buyback in relation to the company's operational performance and market conditions. If the repurchase coincides with strong financial results or favorable industry developments, it could further reinforce investor confidence. Conversely, if the sector is facing headwinds and the company's performance is lackluster, the buyback could be seen as a defensive move rather than a strategic one.

Legal Expert

Legally, share repurchase programs must adhere to specific regulations, such as Rule 10b-18 and Rule 10b5-1 of the Securities Exchange Act of 1934, to prevent market manipulation and insider trading. JinkoSolar's commitment to compliance with these rules is important for maintaining the integrity of the repurchase process. Investors should be assured that the company's insider trading policy and adherence to legal frameworks protect their interests and the fairness of the market.

Furthermore, the structure of the buyback, whether through open-market transactions, privately negotiated deals, or block trades, can affect the market. Open-market transactions are the most transparent and are typically viewed favorably by investors. However, block trades or private deals can sometimes be executed at a discount or premium, which might not always align with the interests of all shareholders.

SHANGRAO, China, March 29, 2024 /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 that since March 20, 2024, the Company has repurchased 788,178 American depositary shares of the Company (the "ADSs") in an aggregate amount of approximately US$18.4 million in the open market under its extended share repurchase program announced in December 2023. As of the date of this press release, the Company has repurchased a total of 1,753,178 ADSs in an aggregate amount of approximately US$46.8 million in the open market under its share repurchase program announced in July 2022 and the extended share repurchase program announced in December 2023.

On December 20, 2023, the Company extended its share repurchase program announced on July 6, 2022 for an additional 18-month period through June 30, 2025. As of the date of this press release, approximately US$153.2 million of the Company's ordinary shares represented by the ADSs under the extended share repurchase program had not been utilized.

The Company may continue to repurchase its ADSs through open-market transactions, privately negotiated transactions or block trades, and/or other legally permissible means, depending on market conditions and in accordance with the applicable rules and regulations. The timing and conditions of the share repurchases will be subject to various factors including the requirements under Rule 10b-18 and Rule 10b5-1 of the Securities Exchange Act of 1934, as well as the Company's insider trading policy.

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, Netherlands, Poland, Austria, Switzerland, Greece and other countries and regions.

JinkoSolar had 14 productions facilities globally, 26 overseas subsidiaries in Japan, South Korea, Vietnam, India, Turkey, Germany, Italy, Switzerland, the United States, Mexico, Brazil, Chile, Australia, Canada, Malaysia, the United Arab Emirates, Denmark, Indonesia, Nigeria and Saudi Arabia, and global sales teams in China, the United States, Canada, Brazil, Chile, Mexico, Italy, Germany, Turkey, Spain, Japan, the United Arab Emirates, Netherlands, Vietnam and India, as of December 31, 2023.

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

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:
Ms. Stella Wang
JinkoSolar Holding Co., Ltd.
Tel: +86 21-5180-8777 ext.7806
Email: ir@jinkosolar.com

Mr. Rene Vanguestaine
Christensen
Tel: +86 178 1749 0483
Email: rene.vanguestaine@christensencomms.com

In the U.S.:
Ms. Linda Bergkamp
Christensen, Scottsdale, Arizona
Tel: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com

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SOURCE JinkoSolar Holding Co., Ltd.

FAQ

How many American depositary shares did JinkoSolar repurchase in the open market?

JinkoSolar repurchased 788,178 American depositary shares in the open market.

What is the total amount spent on repurchasing ADSs under the extended share repurchase program?

The total amount spent on repurchasing ADSs under the extended share repurchase program is approximately $18.4 million.

When did JinkoSolar extend its share repurchase program?

JinkoSolar extended its share repurchase program on December 20, 2023.

How much of the company's ordinary shares remain unused under the extended share repurchase program?

Approximately $153.2 million of the company's ordinary shares represented by the ADSs under the extended share repurchase program remain unused.