JinkoSolar's Subsidiary Jinko Solar Co., Ltd. Announces Estimates of Certain Preliminary Unaudited Financial Results for Full Year 2023

Rhea-AI Summary

JinkoSolar Holding Co., Ltd. announces preliminary unaudited financial results for its subsidiary Jiangxi Jinko, with estimated net income increasing by 146.92% to 170.76% year over year, and net income excluding extraordinary gains and losses increasing by 147.59% to 174.05% year over year. The results are prepared in accordance with PRC GAAP and differ from JinkoSolar's consolidated financial results.

Positive

• JinkoSolar's subsidiary, Jiangxi Jinko, reported significant increases in net income for the full year ended December 31, 2023.
• The estimated net income growth of 146.92% to 170.76% year over year demonstrates strong financial performance.
• The increase in net income excluding extraordinary gains and losses by 147.59% to 174.05% year over year indicates robust financial stability and growth potential.
• JinkoSolar's majority-owned subsidiary's financial results are prepared in accordance with PRC GAAP, reflecting compliance with Chinese accounting standards.

Negative

• None.

Insights

Financial Analyst

The recent financial performance of Jiangxi Jinko, as indicated by the substantial year-over-year increase in net income, reflects a robust growth trajectory for the subsidiary of JinkoSolar. The disclosed figures suggest a significant improvement in profitability, with net income more than doubling compared to the previous year. This remarkable growth could potentially signal strong operational efficiency and an effective strategy in capitalizing on the demand for solar modules.

However, it is crucial for investors to understand the context of these numbers. The financial results are unaudited and prepared under PRC GAAP, which may differ from US GAAP standards. This discrepancy can lead to variations in reported figures due to differences in revenue recognition, expense classification and other accounting treatments. Therefore, stakeholders should approach these preliminary results with caution and await the audited consolidated financials for a comprehensive view of the company's performance.

Market Research Analyst

The impressive growth in net income for Jiangxi Jinko aligns with the global trends in renewable energy adoption, where solar power plays a pivotal role. The solar industry has been benefiting from increased environmental awareness, government incentives and technological advancements that reduce costs and improve efficiency. Jiangxi Jinko's financial success may reflect these broader market dynamics and suggests that the company has effectively leveraged these trends.

For the broader stock market and investors, these preliminary results could be a positive indicator of JinkoSolar's overall health and performance. However, the market's reaction will likely hinge on the final audited reports and the company's guidance for future growth. Investors will also assess the sustainability of this growth by examining the competitive landscape and the company's ability to maintain or increase market share.

Energy Sector Analyst

The reported increase in net income for Jiangxi Jinko is a testament to the potential of the solar energy sector. With the global push towards renewable energy sources, the demand for solar technology is expected to continue rising. Companies like Jiangxi Jinko that can scale production while maintaining quality are well-positioned to benefit from this shift.

However, it's important to note that the solar energy sector is subject to regulatory changes, trade policies and material costs fluctuations. These factors can significantly impact profitability and should be monitored closely by stakeholders. The long-term success of Jiangxi Jinko will depend on its ability to navigate these challenges and continue innovating in a competitive market.

SHANGRAO, China, Jan. 26, 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 its majority-owned principal operating subsidiary Jinko Solar Co., Ltd. ("Jiangxi Jinko") published estimates of certain preliminary unaudited financial results for the full year ended December 31, 2023.

For the year ended December 31, 2023, (i) the preliminary unaudited net income attributable to the shareholders of Jiangxi Jinko is estimated to be in the range from RMB7.25 billion to RMB7.95 billion, increasing by from RMB4.31 billion to RMB5.01 billion and by from 146.92% to 170.76% year over year, and (ii) the preliminary unaudited net income attributable to the shareholders of Jiangxi Jinko excluding extraordinary gains and losses is estimated to be in the range from RMB6.55 billion to RMB7.25 billion, increasing by from RMB3.90 billion to RMB4.60 billion and by from 147.59% to 174.05% year over year.

The preliminary unaudited financial results of Jiangxi Jinko for 2023 described in this press release (the "Jiangxi Jinko Preliminary Unaudited Financial Results") are different from JinkoSolar's consolidated financial results (the "Consolidated Financials"), mainly because (i) the consolidation scope of the Jiangxi Jinko Preliminary Unaudited Financial Results differs from that of the Consolidated Financials: the Jiangxi Jinko Preliminary Unaudited Financial Results are prepared solely for Jiangxi Jinko, whereas the Consolidated Financials also include financial statements of JinkoSolar and its other subsidiaries, and (ii) the Jiangxi Jinko Preliminary Unaudited Financial Results and the Consolidated Financials are prepared according to different accounting standards and principles: the Jiangxi Jinko Preliminary Unaudited Financial Results are prepared in accordance with PRC GAAP, whereas the Consolidated Financials are prepared in accordance with accounting principles generally accepted in the United States of America. As such, investors of JinkoSolar should exercise caution when reviewing the Jiangxi Jinko Preliminary Unaudited Financial Results described in this press release and are advised not to base their investment decisions solely on such preliminary unaudited financial results.

JinkoSolar currently owns approximately 58.59% equity interest in Jiangxi Jinko.

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 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

What are the estimated net income ranges for Jiangxi Jinko for the full year ended December 31, 2023?

The estimated net income ranges for Jiangxi Jinko for the full year ended December 31, 2023, are from RMB7.25 billion to RMB7.95 billion, and the net income excluding extraordinary gains and losses is estimated to be in the range from RMB6.55 billion to RMB7.25 billion.

How much did the net income increase by year over year for Jiangxi Jinko?

The net income for Jiangxi Jinko increased by from 146.92% to 170.76% year over year, and the net income excluding extraordinary gains and losses increased by from 147.59% to 174.05% year over year.

What accounting standards were used to prepare the preliminary unaudited financial results?

The preliminary unaudited financial results are prepared in accordance with PRC GAAP (Generally Accepted Accounting Principles).

What is JinkoSolar's equity interest in Jiangxi Jinko?

JinkoSolar currently owns approximately 58.59% equity interest in Jiangxi Jinko.