JinkoSolar Repurchased 4,203,178 ADSs under Its Share Repurchase Program

Rhea-AI Summary

JinkoSolar, one of the largest and most innovative solar module manufacturers in the world, has repurchased a total of 4,203,178 ADSs in an aggregate amount of approximately US$104.1 million in the open market under its share repurchase program. The company extended its share repurchase program announced in July 2022 for an additional 18-month period through June 30, 2025. As of the date of this press release, approximately US$95.9 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.

Positive

• JinkoSolar has repurchased a significant number of its shares, indicating confidence in the company's financial position.
• The company's extended share repurchase program demonstrates a long-term commitment to returning value to shareholders.
• The flexibility to repurchase shares through various means showcases the company's adaptive approach to managing its capital structure.

Negative

• Approximately US$95.9 million of the Company's ordinary shares represented by the ADSs under the extended share repurchase program had not been utilized, potentially indicating underperformance in the stock market.
• The decision to repurchase shares through open-market transactions, privately negotiated transactions, or block trades may expose the company to market fluctuations and risks.

Insights

Financial Analyst

Investors often view share buyback programs as a positive signal, suggesting a company's leadership believes the stock is undervalued. JinkoSolar's repurchase of 4,203,178 ADSs, representing a significant investment of around $104.1 million>, suggests a considerable level of confidence by the company in its intrinsic value. Given the size of the repurchase relative to the company's market capitalization, this can be a substantial gesture indicating the potential for future growth, or a move to consolidate ownership which can lead to higher earnings per share (EPS).

However, it's important for investors to look beyond the immediate impact. A share repurchase reduces the company's cash reserves, which could potentially limit future investments or debt repayments. Therefore, the company's long-term strategy and financial health should be evaluated, including its revenue streams and profitability, capital expenditure plans and debt levels. A careful review of financial statements and market conditions is warranted to assess the sustainability of such buyback programs.

Market Research Analyst

The solar energy sector is known for its volatility, driven by factors such as government policies, technological advancements and cost of materials. For a company like JinkoSolar, operating in such a dynamic environment, repurchasing shares could be a tactic to manage investor perceptions and stabilize stock price amidst market fluctuations. This action may also reflect an effort to increase the attractiveness of the company to institutional investors who may consider a reduced float and increased EPS as indicators of a potentially undervalued company.

It's essential for investors to understand the broader industry trends and how JinkoSolar's repurchase decision aligns with these trends. Are they gaining market share, or is the buyback a response to competitive pressures? Keeping an eye on the global solar market and JinkoSolar's position within it can provide additional context to the implications of the buyback program on the company's future prospects.

SHANGRAO, China, April 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 as of the date of this press release, the Company has repurchased a total of 4,203,178 ADSs in an aggregate amount of approximately US$104.1 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$95.9 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 utility-scale, commercial and residential customers 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 March 31, 2024.

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 ADSs has JinkoSolar repurchased?

JinkoSolar has repurchased a total of 4,203,178 ADSs.

What is the total amount spent on the share repurchase program?

The total amount spent on the share repurchase program is approximately US$104.1 million.

When was the share repurchase program extended?

The share repurchase program was extended on December 20, 2023, for an additional 18-month period through June 30, 2025.

What are the potential means for JinkoSolar to repurchase its ADSs?

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

What are the factors determining the timing and conditions of the share repurchases?

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.