JinkoSolar Upsizes and Extends Share Repurchase Program

Rhea-AI Summary

JinkoSolar (NYSE: JKS) has announced significant changes to its share repurchase program. The Board has approved increasing the program's value from US$200 million to US$350 million and extending its duration through June 30, 2026. As of the announcement, the company had already repurchased approximately US$134.5 million of ADSs under the existing program, leaving about US$215.5 million available for future repurchases.

The company plans to execute these repurchases through various means, including open-market transactions, private negotiations, and block trades, using existing funds and external financing. The program demonstrates JinkoSolar's confidence in its long-term growth, supported by its N-type TOPCon technology and global operations network.

Positive

• Significant increase in share repurchase program by US$150 million to US$350 million total
• Extension of repurchase program through June 30, 2026
• Strong execution of existing program with US$134.5 million already repurchased
• Company's ability to use both existing funds and external financing for repurchases

Negative

• Potential increase in debt if external financing is used for repurchases
• Significant cash commitment that could limit other investment opportunities

Insights

Financial Analyst

JinkoSolar's significant expansion of its share buyback program from $200 million to $350 million and extension through 2026 signals strong confidence in the company's valuation and future prospects. With $134.5 million already repurchased and $215.5 million remaining, this represents a substantial commitment given JKS's $1.4 billion market cap. The flexibility to use both existing funds and external financing for buybacks provides good optionality. This move could help support the stock price and enhance shareholder value, particularly given the current challenging market conditions in the solar sector. The timing suggests management views the current share price as undervalued relative to the company's N-type TOPCon technology advantages and global operational capabilities.

Market Research Analyst

The expanded buyback program comes at a strategic time when solar stocks have faced significant pressure due to industry overcapacity and pricing challenges. With JinkoSolar's stock trading at relatively low valuations, the increased buyback capacity demonstrates management's bullish outlook on the company's competitive position in N-type TOPCon technology. The extended timeline through 2026 provides ample flexibility to execute purchases opportunistically. This move could help stabilize the stock price and improve investor sentiment, particularly important given the current market dynamics in the solar sector. The company's willingness to deploy significant capital for share repurchases while maintaining investment in technology and capacity suggests strong underlying business fundamentals.

SHANGRAO, China, Dec. 10, 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 board of directors ("Board") has approved the upsizing and extension of its existing share repurchase program ("Existing Share Repurchase Program").

As previously announced, the Company launched a share repurchase program in July 2022, whereby the Company was authorized to repurchase up to US$200 million of its Class A ordinary shares represented by American depositary shares ("ADSs"). In December 2023, the Company extended the share repurchase program by 18 months through June 30, 2025. As of the date of this press release, the Company had repurchased approximately US$134.5 million of the ADSs authorized under the Existing Share Repurchase Program.

On December 10, 2024, the Board has approved to upsize the Existing Share Repurchase Program by increasing the aggregate value of Class A ordinary shares represented by ADSs that may be repurchased from US$200 million to US$350 million. In addition, the Board has also approved to extend the Existing Share Repurchase Program for an additional 12-month period through June 30, 2026 (the "Extended Share Repurchase Program"). Under the Extended Share Repurchase Program, the Company may repurchase up to approximately US$215.5 million of its Class A ordinary shares represented by the ADSs through June 30, 2026.

The Company's proposed repurchases may be made from time to time on the open market at prevailing market prices in open-market transactions, privately negotiated transactions or block trades, and/or through 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. The Company plans to use its existing funds and external financing to fund repurchases made under the Extended Share Repurchase Program. The Board will review the Extended Repurchase Program periodically and may authorize adjustment of its terms and size.

Mr. Xiande Li, JinkoSolar's Chairman of the Board and Chief Executive Officer, commented, "The upsizing and extension of the Existing Share Repurchase Program further reflect our continued confidence in our long-term business growth. The competitive advantage of our N-type TOPCon technology, extensive global operation network, and advanced integrated capacity structure have ideally positioned us to capture the growth opportunities this sector continues to generate. We remain fully committed to creating sustainable value for 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 over 10 productions facilities globally, over 20 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 September 30, 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

View original content:https://www.prnewswire.com/news-releases/jinkosolar-upsizes-and-extends-share-repurchase-program-302328333.html

SOURCE JinkoSolar Holding Co., Ltd.

FAQ

How much did JinkoSolar increase its share repurchase program to in December 2024?

JinkoSolar increased its share repurchase program from US$200 million to US$350 million in December 2024.

When does JKS's extended share repurchase program end?

The extended share repurchase program will end on June 30, 2026.

How much has JKS already spent on share repurchases under the existing program?

JinkoSolar has already repurchased approximately US$134.5 million of ADSs under the existing program.

How much remains available for JKS to repurchase under the extended program?

Approximately US$215.5 million remains available for repurchases through June 30, 2026.

How will JinkoSolar fund the share repurchase program?

JinkoSolar plans to use its existing funds and external financing to fund the share repurchases.