JinkoSolar Repurchased 3,246,425 ADSs under Its Share Repurchase Program

Rhea-AI Summary

JinkoSolar, a leading solar module manufacturer, has repurchased 3,246,425 ADSs worth approximately US$82.5 million under its share repurchase program. The company extended the program through June 30, 2025, with US$117.5 million remaining unused.

Insights

Financial Analyst

The repurchase of American Depositary Shares (ADSs) by JinkoSolar signifies a strategic approach to capital allocation. By investing $82.5 million back into the company through these repurchases, the company is signaling confidence in its intrinsic value and future prospects. Such buybacks often aim to reduce the number of shares outstanding, potentially leading to an elevation in earnings per share (EPS) and return on equity (ROE), both of which can be attractive to investors.

It's important for retail investors to consider the opportunity cost of this capital deployment. While the repurchase could suggest undervaluation or a lack of viable investment opportunities within the company's operations, it might also reflect a proactive measure to enhance shareholder value. Analyzing the impact on the company's balance sheet is crucial, as the repurchase program is financed from the company's cash reserves or through debt, the latter potentially increasing financial leverage.

Market Research Analyst

From a market sentiment perspective, share buyback programs like JinkoSolar's can be interpreted as a positive signal to the market. However, the utility of this signal depends on the context of the solar industry's growth dynamics. Given the current trends towards renewable energy and the increasing competitiveness of solar technologies, investors might view JinkoSolar's repurchase program as a commitment to stakeholder value, assuming that market conditions are favorable and will continue to be so.

Nevertheless, retail investors should weigh such actions against industry benchmarks. Share repurchase programs are a common phenomenon; thus, their announcement alone might not suffice as a solid indicative factor of a company's outperformance. The timing, scale and execution of the repurchases in relation to the company's strategic objectives should be scrutinized to gauge potential market effects accurately.

SHANGRAO, China, April 18, 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 as of the date of this press release, the Company has repurchased a total of 3,246,425 ADSs in an aggregate amount of approximately US$82.5 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$117.5 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 a global sales network with 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

View original content:https://www.prnewswire.com/news-releases/jinkosolar-repurchased-3-246-425-adss-under-its-share-repurchase-program-302120802.html

SOURCE JinkoSolar Holding Co., Ltd.

FAQ

How many ADSs did JinkoSolar repurchase under its share repurchase program?

JinkoSolar repurchased a total of 3,246,425 ADSs.

What is the total amount spent on repurchasing ADSs by JinkoSolar?

JinkoSolar spent approximately US$82.5 million on repurchasing ADSs.

When did JinkoSolar extend its share repurchase program?

JinkoSolar extended its share repurchase program on December 20, 2023, through June 30, 2025.

How much of the ordinary shares represented by ADSs remain unused under the extended share repurchase program?

Approximately US$117.5 million of the ordinary shares represented by ADSs remain unused.

In what ways can JinkoSolar repurchase its ADSs?

JinkoSolar can repurchase its ADSs through open-market transactions, privately negotiated transactions, block trades, or other legally permissible means.