JinkoSolar Repurchased 400,000 ADSs under Its Extended Share Repurchase Program

Rhea-AI Summary

JinkoSolar Holding Co., Ltd. announced a share repurchase program, repurchasing 400,000 American depositary shares (ADSs) for approximately US$11.8 million. The program, initially authorized for US$200 million, was extended through June 30, 2025. As of the press release date, around US$179.1 million had not been utilized. The company may continue repurchasing ADSs through various means, aiming to increase shareholder value and achieve sustainable profitability.

Insights

Financial Analyst

The recent announcement by JinkoSolar about their ongoing share repurchase program indicates a strategic financial decision that could signal the company's confidence in its intrinsic value. The repurchase of 400,000 American depositary shares for approximately $11.8 million suggests that the management believes the shares are undervalued and that investing in their own stock is a good use of capital. This action often has the effect of increasing earnings per share (EPS) by reducing the number of shares outstanding, which can be attractive to investors.

It's important to note that the company has not exhausted its authorized repurchase amount, with around $179.1 million still available for future buybacks. This could imply a potential increase in future demand for the shares, which might positively affect the stock price. However, investors should consider the opportunity cost of these buybacks, as the funds used for repurchasing shares could alternatively be invested in growth opportunities or used to pay down debt.

Market Research Analyst

From a market perspective, JinkoSolar's share repurchase program could be interpreted as a positive signal to the market, suggesting that the company's leadership is optimistic about future prospects. This activity also reflects on the company's capital allocation strategy and may be seen by investors as a commitment to returning value. The extension of the repurchase program through June 2025 indicates a long-term plan to support the stock price.

Furthermore, the mention of N-type TOPCon technology by the CEO highlights JinkoSolar's focus on innovation within the solar module manufacturing industry. This technology is known for higher efficiency and better performance in generating electricity from sunlight, which could give JinkoSolar a competitive edge in the market. The company's emphasis on technology and global operations could reassure investors of its potential to maintain or expand market share, despite the cyclical nature of the solar industry.

Legal Expert

Legally, share repurchase programs must comply with specific regulations, such as Rule 10b-18 and Rule 10b5-1 under the Exchange Act, which are designed to prevent market manipulation and insider trading. JinkoSolar's adherence to these rules will be crucial in maintaining the integrity of the repurchase process. The company's insider trading policy will also play a role in ensuring that executives and other insiders do not unfairly benefit from transactions based on material non-public information.

Investors should be aware that while share repurchases can be a sign of strength, they must be executed with transparency and within the boundaries of legal and regulatory frameworks to avoid any potential legal issues. The company's commitment to legal compliance in its repurchase program can further instill confidence in its corporate governance practices.

SHANGRAO, China, Feb. 5, 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 between December 20, 2023 and February 2, 2024, the Company repurchased 400,000 American depositary shares of the Company (the "ADSs") in an aggregate amount of approximately US$11.8 million in the open market under its previously announced extended share repurchase program.

On July 6, 2022, the Company announced a share repurchase program, which authorizes the Company to repurchase up to US$200 million of its ordinary shares represented by ADSs for an 18-month period. On December 20, 2023, the Company extended this share repurchase program for an additional 18-month period through June 30, 2025. As of the date of this press release, approximately US$179.1 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 Exchange Act, as well as the Company's insider trading policy.

Mr. Xiande Li, JinkoSolar's Chairman of the Board and Chief Executive Officer, commented, "Leveraging the competitive advantage of our N-type TOPCon technology, extensive global operation network, and advanced integrated capacity structure, we are confident in our ability to navigate through cyclical volatility, achieve healthy and sustainable profitability, and increase shareholder value. We will continue to repurchase our shares and fulfill our commitment to our shareholders."

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, 24 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 September 30, 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 SEC, 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-400-000-adss-under-its-extended-share-repurchase-program-302053248.html

SOURCE JinkoSolar Holding Co., Ltd.

FAQ

What did JinkoSolar announce regarding share repurchase?

JinkoSolar announced a share repurchase program, repurchasing 400,000 American depositary shares (ADSs) for approximately US$11.8 million.

What was the initial authorization for the share repurchase program?

The share repurchase program was initially authorized for up to US$200 million.

Until when was the share repurchase program extended?

The share repurchase program was extended through June 30, 2025.

How much of the authorized amount had not been utilized as of the press release date?

As of the press release date, approximately US$179.1 million of the authorized amount had not been utilized.

What methods may the company use to continue repurchasing ADSs?

The company may continue repurchasing ADSs through open-market transactions, privately negotiated transactions, block trades, and/or other legally permissible means.

Who commented on the company's ability to navigate through cyclical volatility and increase shareholder value?

Mr. Xiande Li, JinkoSolar's Chairman of the Board and Chief Executive Officer, commented on the company's ability to navigate through cyclical volatility and increase shareholder value.