JinkoSolar to sign a strategic partnership agreement with Tongwei for project investment and industrial chain cooperation

Rhea-AI Summary

JinkoSolar (NYSE: JKS) plans to sign a strategic cooperation agreement with Tongwei Co., Ltd. to invest in a high-purity crystalline silicon project with an annual capacity of 45,000 metric tons and a silicon wafer project with a 15GW annual capacity. JinkoSolar will hold a 35% stake in the silicon project, while Tongwei will have a 30% stake in the wafer project. This partnership aims to enhance resource integration in the solar industry and ensure competitive pricing in production. JinkoSolar will also supply Tongwei with approximately 6.5GW of wafer products over three years.

Positive

• Strategic partnership with Tongwei to enhance production capacity and resource integration.
• Investment in high-purity crystalline silicon and silicon wafer projects increases competitive edge.
• JinkoSolar to supply 6.5GW of silicon wafer products, strengthening supply chain.

Negative

• None.

SHANGRAO, China, Feb. 19, 2021 /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 the Company intends to sign a "strategic cooperation agreement" with Tongwei Co., Ltd. ("Tongwei") – to jointly invest in a high-purity crystalline silicon project with annual capacity of 45,000 metric tons and a silicon wafer project with an annual production capacity of 15GW, as well as develop a more extensive industrial chain cooperation.

According to the agreement, JinkoSolar will own a 35% equity stake in the 45,000 tons high-purity crystalline silicon project, while Tongwei will hold a 30% equity stake in the 15GW silicon wafer project. Under the industrial chain cooperation, the production capacity and products of the joint venture for the high-purity crystalline silicon will be given priority to meet the production needs of the joint venture silicon wafer company. Wafer products produced under the jointly invested silicon wafer project will be cost effective and price competitive. In addition, based on the previous procurement contract for 93,000 metric tons of polycrystalline silicon, JinkoSolar will supply Tongwei with a total of approximately 6.5GW of silicon wafer products for three years.

Mr. Kangping Chen, Chief Executive Officer of JinkoSolar, commented, "As a leading global high-purity crystalline silicon and solar cell company, Tongwei has always been an important strategic partner of JinkoSolar. Our Company has a vertically integrated production capacity with cumulative module shipments exceeding 70GW by the end of 2020. This strategic cooperation will benefit two companies from different segments of the solar industrial chain and strengthen resource sharing and integration within the PV industry, as well as increase industry leadership and dominance of both parties, and jointly create a win-win manufacturing ecosystem."

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, and other countries and regions. JinkoSolar has built a vertically integrated solar product value chain, with an integrated annual capacity of 20 GW for mono wafers, 11 GW for solar cells, and 25 GW for solar modules, as of September 30, 2020.

JinkoSolar has 9 productions facilities globally, 20 overseas subsidiaries in Japan, South Korea, Vietnam, India, Turkey, Germany, Italy, Switzerland, United States, Mexico, Brazil, Chile, Australia, Portugal, Canada, Malaysia, UAE, Kenya, Denmark, and global sales teams in China, United Kingdom, France, Spain, Bulgaria, Greece, Ukraine, Jordan, Saudi Arabia, Tunisia, Morocco, Kenya, South Africa, Costa Rica, Colombia, Panama, Kazakhstan, Malaysia, Myanmar, Sri Lanka, Thailand, Vietnam, Poland and Argentina, as of September 30, 2020.

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:

Ripple Zhang
JinkoSolar Holding Co., Ltd.
Tel: +86 21-5183-3105
Email: pr@jinkosolar.com

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SOURCE JinkoSolar Holding Co., Ltd.

FAQ

What is JinkoSolar's recent strategic agreement with Tongwei about?

JinkoSolar intends to sign a strategic cooperation agreement with Tongwei to invest in high-purity crystalline silicon and silicon wafer projects.

What are the production capacities of the projects JinkoSolar is investing in?

The project has an annual capacity of 45,000 metric tons for high-purity crystalline silicon and 15GW for silicon wafers.

What equity stake will JinkoSolar hold in the high-purity silicon project?

JinkoSolar will own a 35% equity stake in the high-purity crystalline silicon project.

How much silicon wafer products will JinkoSolar supply to Tongwei?

JinkoSolar will supply approximately 6.5GW of silicon wafer products to Tongwei over three years.

How does this partnership benefit JinkoSolar?

The partnership enhances resource sharing, production needs and strengthens JinkoSolar's competitive position in the solar industry.