JinkoSolar(JKS) - 2021 Q4 - Annual Report

Company Overview & Q1 2022 Highlights JinkoSolar announced its unaudited Q1 2022 financial results, highlighting significant revenue and shipment growth, a 100GW cumulative shipment milestone, and new N-type cell efficiency records Company Information JinkoSolar Holding Co., Ltd. announced its unaudited financial results for the first quarter ended March 31, 2022, on April 28, 2022 - JinkoSolar is one of the largest and most innovative solar module manufacturers globally[1] - The company announced its unaudited Q1 2022 financial results on April 28, 2022[1] First Quarter 2022 Business Highlights The company achieved significant year-over-year revenue and module shipment growth in Q1 2022, becoming the first solar module manufacturer to reach 100GW in cumulative shipments, while setting a new 25.7% world record for N-type monocrystalline cell conversion efficiency and successfully ramping up 16GW N-type cell capacity with mass production efficiency exceeding 24.6% - Revenue and module shipments achieved significant year-over-year growth[2] - By the end of Q1 2022, the company became the first in the industry to cumulatively deliver 100 GW of solar modules[2][21] - High-efficiency N-type monocrystalline solar cells set a new world record with a peak conversion efficiency of 25.7%[2][21] - 16 GW N-type cell capacity at Hefei and Jianshan production bases successfully ramped up, with mass production cell efficiency exceeding 24.6%[2] - The company reaffirmed its full-year 2022 shipment guidance, expecting the overall impact of the COVID-19 pandemic on production and operations to be short-term and controllable[2] First Quarter 2022 Operational and Financial Highlights In Q1 2022, JinkoSolar's total shipments increased by 56.7% year-over-year to 8,390 MW, and total revenues grew by 85.9% to RMB 14.76 billion, though gross margin and net income attributable to ordinary shareholders declined due to rising material costs First Quarter 2022 Operational and Financial Highlights | Metric | Q1 2022 | YoY Change | QoQ Change | | :--- | :--- | :--- | :--- | | Total Shipments | 8,390 MW | +56.7% | -13.4% | | Total Revenues | RMB 14.76 billion (US$2.33 billion) | +85.9% | -9.9% | | Gross Profit | RMB 2.23 billion (US$351.2 million) | +63.9% | -15.8% | | Gross Margin | 15.1% | -2.0 ppts | -1.0 ppts | | Net Income Attributable to Ordinary Shareholders | RMB 28.9 million (US$4.6 million) | -86.9% | -87.9% | | Basic and Diluted EPS (ADS) | RMB 0.60 (US$0.10) | -87.1% | -88.0% | - The quarter-over-quarter decrease in total revenues was primarily due to lower solar module shipments, while the year-over-year increase was mainly driven by higher solar module shipments[3] - The quarter-over-quarter and year-over-year decrease in gross margin was primarily due to increased material costs for solar modules[3] Management Commentary Chairman and CEO Mr. Xiande Li noted robust Q1 2022 performance with significant revenue and shipment growth despite macroeconomic uncertainties and supply chain disruptions, emphasizing N-type technology's potential and plans for further capacity investment - The company achieved robust performance in Q1 2022, with total revenues reaching RMB 14.8 billion, an 86% year-over-year increase, and quarterly shipments growing 57% to 8.4 GW[4] - Polysilicon prices and shipping costs remained high and volatile during the quarter, with China's COVID-19 lockdowns leading to logistics congestion and a significant reduction in transportation capacity, further increasing cost pressure[5] - The company addressed challenges by proactively reserving raw materials and closely coordinating production, supply chain, and sales[5] - Demand for clean energy solutions in the Chinese market remains strong, with increased distributed generation demand and active bidding for large-scale projects[5] - The European market's solar demand is highlighted by the Russia-Ukraine conflict, with expected incremental demand this year and sustained steady growth[5] - 16 GW N-type production capacity successfully ramped up as planned, with mass production N-type cell conversion efficiency exceeding 24.6%, and plans to invest in a second phase of approximately 16 GW N-type cell capacity[5][6] - The company expects its annual production capacity for monocrystalline wafers, solar cells, and modules to reach 55 GW, 55 GW, and 60 GW, respectively, by the end of 2022[6] First Quarter 2022 Financial Results Analysis This section analyzes JinkoSolar's Q1 2022 financial performance, detailing trends in revenues, margins, operating expenses, and net income, highlighting the impact of material costs and strategic investments Total Revenues Total revenues for Q1 2022 were RMB 14.76 billion (US$2.33 billion), a 9.9% sequential decrease but a significant 85.9% year-over-year increase, primarily driven by increased solar module shipments due to global market demand Total Revenues | Metric | Q1 2022 (RMB) | Q4 2021 (RMB) | Q1 2021 (RMB) | Q1 2022 (USD) | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | 14.76 billion | 16.39 billion | 7.94 billion | 2.33 billion | - The 9.9% sequential decrease in total revenues was primarily due to lower solar module shipments[7] - The 85.9% year-over-year increase in total revenues was primarily due to increased solar module shipments driven by global market demand[7] Gross Profit and Gross Margin Gross profit for Q1 2022 was RMB 2.23 billion (US$351.2 million), with a gross margin of 15.1%, both declining sequentially and year-over-year primarily due to increased material costs for solar modules Gross Profit and Gross Margin | Metric | Q1 2022 (RMB) | Q4 2021 (RMB) | Q1 2021 (RMB) | Q1 2022 (USD) | | :--- | :--- | :--- | :--- | :--- | | Gross Profit | 2.23 billion | 2.64 billion | 1.36 billion | 351.2 million | | Gross Margin | 15.1% | 16.1% | 17.1% | - | - The sequential and year-over-year decrease in gross margin was primarily due to increased material costs for solar modules[8] Income from Operations and Operating Margin Income from operations in Q1 2022 was RMB 40.8 million (US$6.4 million), with an operating margin of 0.3%, both significantly decreasing sequentially and year-over-year due to increased solar module material costs and share-based compensation expenses Income from Operations and Operating Margin | Metric | Q1 2022 (RMB) | Q4 2021 (RMB) | Q1 2021 (RMB) | Q1 2022 (USD) | | :--- | :--- | :--- | :--- | :--- | | Income from Operations | 40.8 million | 485.8 million | 149.1 million | 6.4 million | | Operating Margin | 0.3% | 3.0% | 1.9% | - | - The sequential and year-over-year decrease in operating margin was primarily due to increased material costs for solar modules and share-based compensation expenses in Q1 2022[8] Total Operating Expenses Total operating expenses in Q1 2022 were RMB 2.19 billion (US$344.8 million), a slight 1.3% sequential increase and a significant 80.8% year-over-year increase, mainly due to higher solar module shipping costs and share-based compensation expenses Total Operating Expenses | Metric | Q1 2022 (RMB) | Q4 2021 (RMB) | Q1 2021 (RMB) | Q1 2022 (USD) | | :--- | :--- | :--- | :--- | :--- | | Total Operating Expenses | 2.19 billion | 2.16 billion | 1.21 billion | 344.8 million | | % of Total Revenues | 14.8% | 13.2% | 15.2% | - | - The 80.8% year-over-year increase in total operating expenses was primarily attributable to increased solar module shipping costs and share-based compensation expenses in Q1 2022[9] Interest Expense, Net Net interest expense in Q1 2022 was RMB 162.2 million (US$25.6 million), increasing sequentially and year-over-year, primarily due to an increase in the company's interest-bearing debts Interest Expense, Net | Metric | Q1 2022 (RMB) | Q4 2021 (RMB) | Q1 2021 (RMB) | Q1 2022 (USD) | | :--- | :--- | :--- | :--- | :--- | | Net Interest Expense | 162.2 million | 144.4 million | 156.5 million | 25.6 million | - The sequential and year-over-year increase in net interest expense was primarily due to an increase in the company's interest-bearing debts[9] Subsidy Income Subsidy income in Q1 2022 was RMB 305.3 million (US$48.2 million), significantly increasing sequentially and year-over-year, primarily due to the receipt of non-recurring, non-refundable, and unconditional cash subsidies from local Chinese governments Subsidy Income | Metric | Q1 2022 (RMB) | Q4 2021 (RMB) | Q1 2021 (RMB) | Q1 2022 (USD) | | :--- | :--- | :--- | :--- | :--- | | Subsidy Income | 305.3 million | 109.6 million | 130.3 million | 48.2 million | - The sequential and year-over-year increase in subsidy income was primarily due to the receipt of non-recurring, non-refundable, and unconditional cash subsidies from local Chinese governments[10] Exchange Gain and Change in Fair Value of Foreign Exchange Derivatives In Q1 2022, the company recorded a net exchange gain (including changes in fair value of foreign exchange derivatives) of RMB 76.4 million (US$12.1 million), a reversal from net exchange losses in prior periods, mainly due to gains from forward foreign exchange contracts as the USD and EUR depreciated against the RMB Net Exchange Gain/(Loss) | Metric | Q1 2022 (RMB) | Q4 2021 (RMB) | Q1 2021 (RMB) | Q1 2022 (USD) | | :--- | :--- | :--- | :--- | :--- | | Net Exchange Gain/(Loss) | 76.4 million | (10.5 million) | (26.6 million) | 12.1 million | - The sequential and year-over-year increase was primarily due to gains from forward foreign exchange contracts as the USD and EUR depreciated against the RMB in Q1 2022[10] Change in Fair Value of Convertible Senior Notes and Call Option In Q1 2022, the company recorded a loss of RMB 104.9 million (US$16.6 million) from changes in the fair value of convertible senior notes due to an increase in the company's share price, with US$69.25 million of notes outstanding as of March 31, 2022, and no call option changes as all remaining options were cash-settled in Q3 2021 Change in Fair Value of Convertible Senior Notes and Call Option | Metric | Q1 2022 (RMB) | Q4 2021 (RMB) | Q1 2021 (RMB) | Q1 2022 (USD) | | :--- | :--- | :--- | :--- | :--- | | Change in Fair Value of Convertible Senior Notes | (104.9 million) | 9.5 million | 414.9 million | (16.6 million) | | Change in Fair Value of Call Option | nil | nil | (235.8 million) | nil | - The loss from changes in the fair value of convertible senior notes was primarily due to an increase in the company's share price in Q1 2022[12] - As of March 31, 2022, US$69.25 million of convertible senior notes remained outstanding[12] - There was no change in the call option during the quarter, primarily because the company had exercised all remaining call options for cash settlement in Q3 2021[12] Equity in Earnings of Affiliated Companies Equity in earnings of affiliated companies was RMB 6.4 million (US$1.0 million) in Q1 2022, an increase from the prior quarter but a significant decrease from the prior year, mainly due to fair value changes in interest rate swaps recorded by an affiliate that terminated its swap arrangements this quarter Equity in Earnings of Affiliated Companies | Metric | Q1 2022 (RMB) | Q4 2021 (RMB) | Q1 2021 (RMB) | Q1 2022 (USD) | | :--- | :--- | :--- | :--- | :--- | | Equity in Earnings of Affiliated Companies | 6.4 million | 3.5 million | 43.4 million | 1.0 million | - The fluctuation in earnings was primarily due to changes in the fair value of interest rate swaps recorded by an affiliated company, which terminated its interest rate swap arrangements in Q1 2022[13] Income Tax Expense Income tax expense for Q1 2022 was RMB 71.0 million (US$11.2 million), a sequential decrease primarily due to lower profit in the current quarter compared to Q4 2021 Income Tax Expense | Metric | Q1 2022 (RMB) | Q4 2021 (RMB) | Q1 2021 (RMB) | Q1 2022 (USD) | | :--- | :--- | :--- | :--- | :--- | | Income Tax Expense | 71.0 million | 126.9 million | 52.2 million | 11.2 million | - The sequential decrease in income tax expense was primarily due to lower profit in the current quarter compared to Q4 2021[14] Non-Controlling Interests Net income attributable to non-controlling interests in Q1 2022 was RMB 75.3 million (US$11.9 million), a significant year-over-year increase, primarily due to the non-controlling interests' ownership stake in Jiangxi Jinko increasing from 26.72% to 41.38% after its IPO on the STAR Market Net Income Attributable to Non-Controlling Interests | Metric | Q1 2022 (RMB) | Q4 2021 (RMB) | Q1 2021 (RMB) | Q1 2022 (USD) | | :--- | :--- | :--- | :--- | :--- | | Net Income Attributable to Non-Controlling Interests | 75.3 million | 84.4 million | 48.7 million | 11.9 million | - The increase in net income attributable to non-controlling interests was primarily due to the non-controlling interests' ownership stake in Jiangxi Jinko, a major subsidiary, increasing from 26.72% to 41.38% after its IPO on the STAR Market on January 26, 2022[14] Net Income and Earnings per Share Net income attributable to the company's ordinary shareholders in Q1 2022 was RMB 28.9 million (US$4.6 million), significantly decreasing both year-over-year and sequentially, with basic and diluted earnings per ADS also substantially lower at RMB 0.60 (US$0.10) Net Income and Earnings per Share | Metric | Q1 2022 (RMB) | Q4 2021 (RMB) | Q1 2021 (RMB) | Q1 2022 (USD) | | :--- | :--- | :--- | :--- | :--- | | Net Income Attributable to Ordinary Shareholders | 28.9 million | 239.5 million | 221.1 million | 4.6 million | | Basic EPS (ADS) | 0.60 | 5.02 | 4.64 | 0.10 | | Diluted EPS (ADS) | 0.60 | 4.16 | (3.61) | 0.10 | Financial Position This section provides an overview of JinkoSolar's financial position as of March 31, 2022, detailing changes in cash, receivables, inventories, and interest-bearing debts Cash and Cash Equivalents & Restricted Cash As of March 31, 2022, the company's total cash and cash equivalents and restricted cash significantly increased to RMB 16.87 billion (US$2.66 billion) from RMB 8.92 billion as of December 31, 2021 Cash and Cash Equivalents & Restricted Cash | Metric | Mar 31, 2022 (RMB) | Dec 31, 2021 (RMB) | Mar 31, 2022 (USD) | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents & Restricted Cash | 16.87 billion | 8.92 billion | 2.66 billion | Accounts Receivables As of March 31, 2022, accounts receivable from third parties increased to RMB 8.56 billion (US$1.35 billion) from RMB 7.47 billion as of December 31, 2021 Accounts Receivables | Metric | Mar 31, 2022 (RMB) | Dec 31, 2021 (RMB) | Mar 31, 2022 (USD) | | :--- | :--- | :--- | :--- | | Accounts Receivable from Third Parties | 8.56 billion | 7.47 billion | 1.35 billion | Inventories As of March 31, 2022, the company's inventories increased to RMB 15.95 billion (US$2.52 billion) from RMB 13.25 billion as of December 31, 2021 Inventories | Metric | Mar 31, 2022 (RMB) | Dec 31, 2021 (RMB) | Mar 31, 2022 (USD) | | :--- | :--- | :--- | :--- | | Inventories | 15.95 billion | 13.25 billion | 2.52 billion | Total Interest-Bearing Debts As of March 31, 2022, total interest-bearing debts increased to RMB 27.46 billion (US$4.33 billion) from RMB 25.63 billion as of December 31, 2021, with RMB 419 million related to overseas downstream solar projects Total Interest-Bearing Debts | Metric | Mar 31, 2022 (RMB) | Dec 31, 2021 (RMB) | Mar 31, 2022 (USD) | | :--- | :--- | :--- | :--- | | Total Interest-Bearing Debts | 27.46 billion | 25.63 billion | 4.33 billion | - Of this, RMB 419 million (US$66.1 million) was related to the company's overseas downstream solar projects[16][17] Operational Highlights & Outlook This section outlines JinkoSolar's Q1 2022 shipment and production capacity, along with its business outlook and guidance for 2022, including plans for N-type cell capacity expansion and recent business developments Shipments Total shipments in Q1 2022 were 8,390 MW, comprising 8,031 MW of solar modules and 359 MW of cells and wafers Shipments | Metric | Q1 2022 | | :--- | :--- | | Total Shipments | 8,390 MW | | Solar Module Shipments | 8,031 MW | | Cell and Wafer Shipments | 359 MW | Production Capacity As of March 31, 2022, the company's annual production capacity for monocrystalline wafers, solar cells, and solar modules was 40.0 GW, 40.0 GW (including 16.9 GW N-type cells), and 50.0 GW, respectively Production Capacity as of March 31, 2022 | Product | Annual Capacity | | :--- | :--- | | Monocrystalline Wafers | 40.0 GW | | Solar Cells | 40.0 GW (including 16.9 GW N-type cells) | | Solar Modules | 50.0 GW | Business Outlook & Guidance The company reaffirmed its full-year 2022 shipment guidance and plans to invest in a second phase of approximately 16GW N-type cell capacity, projecting Q2 2022 total shipments of 8.5 GW to 9.5 GW and full-year shipments of 35.0 GW to 40.0 GW, with increased annual production capacities by year-end - The company reaffirmed its full-year 2022 shipment guidance, expecting the overall impact of the COVID-19 pandemic on production and operations to be short-term and controllable[19] - Given the growing demand for high-efficiency N-type products, the company plans to invest in a second phase of approximately 16 GW N-type cell capacity[19] 2022 Shipment and Capacity Guidance | Metric | Q2 2022 | Full Year 2022 | | :--- | :--- | :--- | | Total Shipments | 8.5 GW - 9.5 GW | 35.0 GW - 40.0 GW | Production Capacity Guidance as of Year-End 2022 | Product | Estimated Annual Capacity | | :--- | :--- | | Monocrystalline Wafers | 55.0 GW | | Solar Cells | 55.0 GW (including 32.9 GW N-type cells) | | Solar Modules | 60.0 GW | Recent Business Developments Recent business developments include becoming the first company to reach 100GW in global solar module shipments in March 2022, delivering over 500,000 high-efficiency modules to a large European bifacial project in April, and setting a new 25.7% world record for N-type monocrystalline solar cell conversion efficiency - In March 2022, JinkoSolar announced its global solar module shipments reached 100 GW, becoming the first company in history to achieve this milestone[21] - In April 2022, JinkoSolar delivered over 500,000 ultra-high efficiency modules to one of Europe's largest bifacial projects[21] - In April 2022, JinkoSolar's high-efficiency N-type monocrystalline solar cells set a new world record with a peak conversion efficiency of 25.7%[21] Supplementary Information This section provides additional details including conference call information, an overview of JinkoSolar Holding Co., Ltd., currency convenience translation notes, a safe harbor statement, and investor and media inquiry contacts Conference Call Information The company's management held an earnings conference call on April 28, 2022, providing international and US toll-free dial-in numbers and a passcode, with a replay and webcast available - JinkoSolar management held an earnings conference call on April 28, 2022, at 8:00 AM U.S. Eastern Time (8:00 PM Beijing/Hong Kong Time)[22] - International and U.S. toll-free dial-in numbers and a passcode were provided, with a telephone replay available until May 5, 2022[22][23][24] - A live and archived webcast of the conference call is accessible on JinkoSolar's investor relations website[24] About JinkoSolar Holding Co., Ltd. JinkoSolar is a leading global solar module manufacturer with operations across multiple countries and regions, featuring a vertically integrated solar product value chain and significant annual production capacities as of March 31, 2022 - JinkoSolar is one of the largest and most innovative solar module manufacturers globally[25] - The company serves a diversified international utility, commercial, and residential customer base across various countries and regions worldwide[25] - As of March 31, 2022, the company has a vertically integrated solar product value chain with annual production capacities of 40.0 GW for monocrystalline wafers, 40.0 GW for solar cells, and 50.0 GW for solar modules[25] - As of March 31, 2022, JinkoSolar operates 12 production facilities, 21 overseas subsidiaries, and a global sales team[26] Currency Convenience Translation RMB to USD conversions in this press release are provided for reader convenience, based on the noon buying rate of RMB in New York City for cable transfers as certified by the Federal Reserve Bank of New York on March 31, 2022, at RMB 6.3393 to US$1.00 - RMB to USD conversions are based on the noon buying rate of RMB in New York City for cable transfers as certified by the Federal Reserve Bank of New York on March 31, 2022, at RMB 6.3393 to US$1.00[27] - Percentages in this press release are calculated based on RMB amounts[27] Safe Harbor Statement This press release contains forward-looking statements that involve risks and uncertainties which could cause actual results to differ materially, and the company undertakes no obligation to update them unless required by law - This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934[28] - Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those stated[28] - The company undertakes no obligation to update any forward-looking statements unless required by law[28] Investor and Media Inquiries Investor and media contact information for JinkoSolar in China and the United States is provided - Investor and media contact information for JinkoSolar in China and the United States, including contact names, phone numbers, and email addresses, is provided[29] Unaudited Condensed Consolidated Financial Statements This section presents JinkoSolar Holding Co., Ltd.'s unaudited condensed consolidated financial statements, including statements of operations, comprehensive income, and balance sheets, with detailed financial metrics for the specified periods Unaudited Condensed Consolidated Statements of Operations This section provides JinkoSolar Holding Co., Ltd.'s unaudited condensed consolidated statements of operations for the quarters ended March 31, 2021, December 31, 2021, and March 31, 2022, along with USD equivalents for March 31, 2022, detailing key financial metrics such as revenues, costs, expenses, profit, and earnings per share Unaudited Condensed Consolidated Statements of Operations | | Mar 31, 2021 RMB'000 | For the quarter Dec 31, 2021 RMB'000 | ended Mar 31, 2022 RMB'000 | 2022 USD'000 | | :--- | :--- | :--- | :--- | :--- | | Revenues from third parties | 7,940,050 | 16,361,236 | 14,727,499 | 2,323,206 | | Revenues from related parties | 544 | 26,472 | 37,285 | 5,882 | | Total revenues | 7,940,594 | 16,387,708 | 14,764,784 | 2,329,088 | | Cost of revenues | (6,582,222) | (13,743,415) | (12,538,177) | (1,977,849) | | Gross profit | 1,358,372 | 2,644,293 | 2,226,607 | 351,239 | | Operating expenses: | | | | | | Selling and marketing | (614,856) | (1,117,473) | (1,384,467) | (218,394) | | General and administrative | (363,872) | (776,137) | (656,413) | (103,547) | | Research and development | (107,144) | (114,549) | (144,975) | (22,869) | | Impairment of long-lived assets | (123,405) | (150,308) | - | - | | Total operating expenses | (1,209,277) | (2,158,467) | (2,185,855) | (344,810) | | Income from operations | 149,095 | 485,826 | 40,752 | 6,429 | | Interest expenses, net | (156,535) | (144,420) | (162,198) | (25,586) | | Subsidy income | 130,315 | 109,636 | 305,296 | 48,159 | | Exchange loss | (71,543) | (127,483) | 6,383 | 1,007 | | Change in fair value of commodity futures | - | - | 486 | 77 | | Change in fair value of foreign exchange derivatives | 44,904 | 116,993 | 70,047 | 11,050 | | Change in fair value of convertible senior notes and call option | 179,104 | 9,540 | (104,936) | (16,553) | | Other income/(expense), net | 3,239 | (2,865) | 13,018 | 2,054 | | Income before income taxes | 278,579 | 447,227 | 168,848 | 26,637 | | Income tax expenses | (52,210) | (126,872) | (71,021) | (11,203) | | Equity in earnings of affiliated companies | 43,448 | 3,471 | 6,446 | 1,017 | | Net income | 269,817 | 323,826 | 104,273 | 16,451 | | Less: Net income attributable to non-controlling interests | (48,725) | (84,359) | (75,336) | (11,884) | | Net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders | 221,092 | 239,467 | 28,937 | 4,567 | Net Income/(Loss) Attributable to JinkoSolar Holding Co., Ltd.'s Ordinary Shareholders per Share and ADS | | Mar 31, 2021 RMB | For the quarter Dec 31, 2021 RMB | ended Mar 31, 2022 RMB | 2022 USD | | :--- | :--- | :--- | :--- | :--- | | Basic per share | 1.16 | 1.26 | 0.15 | 0.02 | | Diluted per share | (0.90) | 1.04 | 0.15 | 0.02 | | Basic per ADS | 4.64 | 5.02 | 0.60 | 0.10 | | Diluted per ADS | (3.61) | 4.16 | 0.60 | 0.10 | | Weighted average ordinary shares outstanding: | | | | | | Basic | 190,427,792 | 190,775,385 | 192,314,636 | 192,314,636 | | Diluted | 205,142,801 | 205,838,968 | 192,578,950 | 192,578,950 | | Weighted average ADS outstanding: | | | | | | Basic | 47,606,948 | 47,693,846 | 48,078,659 | 48,078,659 | | Diluted | 51,285,700 | 51,459,742 | 48,144,737 | 48,144,737 | Unaudited Condensed Consolidated Statement of Comprehensive Income This section presents JinkoSolar Holding Co., Ltd.'s unaudited condensed consolidated statement of comprehensive income, detailing net income, other comprehensive income items such as foreign currency translation adjustments and changes in instrument-specific credit risk, and comprehensive income attributable to non-controlling interests and ordinary shareholders Unaudited Condensed Consolidated Statement of Comprehensive Income | | Mar 31, 2021 RMB'000 | For the quarter Dec 31, 2021 RMB'000 | ended Mar 31, 2022 RMB'000 | 2022 USD'000 | | :--- | :--- | :--- | :--- | :--- | | Net income | 269,817 | 323,826 | 104,273 | 16,451 | | Other comprehensive income/(loss): | | | | | | -Foreign currency translation adjustments | 89,001 | (107,654) | (30,526) | (4,815) | | -Change in the instrument-specific credit risk | 22,638 | (15,948) | 37,559 | 5,925 | | Comprehensive income | 381,456 | 200,224 | 111,306 | 17,561 | | Less: Comprehensive income attributable to non-controlling interests | (48,725) | (84,359) | (75,336) | (11,884) | | Comprehensive income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders | 332,731 | 115,865 | 35,970 | 5,677 | Unaudited Condensed Consolidated Balance Sheets This section provides JinkoSolar Holding Co., Ltd.'s unaudited condensed consolidated balance sheets, detailing the composition of assets, liabilities, and shareholders' equity as of December 31, 2021, and March 31, 2022, including USD equivalents for March 31, 2022 Unaudited Condensed Consolidated Balance Sheets | | Dec 31, 2021 RMB'000 | Mar 31, 2022 RMB'000 | 2022 USD'000 | | :--- | :--- | :--- | :--- | | ASSETS | | | | | Current assets: | | | | | Cash and cash equivalents | 8,321,415 | 15,397,981 | 2,428,972 | | Restricted cash | 602,044 | 1,476,451 | 232,904 | | Restricted short-term investments | 9,261,918 | 11,834,741 | 1,866,885 | | Short-term investments | 150,000 | - | - | | Accounts receivable, net - related parties | 29,417 | 69,944 | 11,033 | | Accounts receivable, net - third parties | 7,471,103 | 8,557,801 | 1,349,960 | | Notes receivable, net - third parties | 1,689,102 | 1,936,368 | 305,455 | | Advances to suppliers, net - third parties | 1,536,155 | 3,091,968 | 487,746 | | Inventories, net | 13,252,352 | 15,953,419 | 2,516,590 | | Forward contract receivables | 73,532 | 70,849 | 11,176 | | Prepayments and other current assets, net - related parties | 17,348 | 17,704 | 2,793 | | Prepayments and other current assets, net | 2,435,056 | 3,118,845 | 491,986 | | Held-for-sale assets | 684,631 | 701,047 | 110,587 | | Total current assets | 45,524,073 | 62,227,118 | 9,816,087 | | Non-current assets: | | | | | Restricted cash | 1,204,697 | 1,223,417 | 192,989 | | Accounts receivable, net - third parties | 27,624 | 27,876 | 4,397 | | Long-term investments | 538,866 | 555,772 | 87,671 | | Property, plant and equipment, net | 19,969,894 | 23,415,061 | 3,693,635 | | Land use rights, net | 1,090,057 | 1,125,327 | 177,516 | | Intangible assets, net | 55,484 | 64,820 | 10,225 | | Financing lease right-of-use assets, net | 628,592 | 611,846 | 96,516 | | Operating lease right-of-use assets, net | 438,270 | 422,487 | 66,646 | | Deferred tax assets | 371,767 | 371,781 | 58,647 | | Advances to suppliers to be utilised beyond one year | 296,709 | 455,471 | 71,849 | | Other assets, net - related parties | 3,292 | 22,020 | 3,474 | | Other assets, net - third parties | 2,739,159 | 1,808,754 | 285,324 | | Investments in equity securities | 95,000 | 95,000 | 14,986 | | Total non-current assets | 27,459,411 | 30,199,632 | 4,763,875 | | Total assets | 72,983,484 | 92,426,750 | 14,579,962 | | LIABILITIES Current liabilities: | | | | | Accounts payable - related parties | 15,863 | - | - | | Accounts payable - third parties | 6,799,854 | 6,705,535 | 1,057,772 | | Notes payable - third parties | 12,072,223 | 19,253,549 | 3,037,173 | | Accrued payroll and welfare expenses | 1,240,791 | 1,207,533 | 190,484 | | Advances from third parties | 5,914,354 | 5,009,661 | 790,255 | | Income tax payable | 214,856 | 183,476 | 28,943 | | Other payables and accruals | 4,844,077 | 6,359,974 | 1,003,262 | | Other payables due to related parties | 2,230 | 1,774 | 280 | | Forward contract payables | 2,659 | 1,390 | 219 | | Financing lease liabilities - current | 194,939 | 199,420 | 31,458 | | Operating lease liabilities - current | 62,515 | 66,045 | 10,418 | | Short-term borrowings from third parties, including current portion of long-term bank borrowings | 13,339,367 | 13,949,985 | 2,200,556 | | Guarantee liabilities to related parties | 2,500 | 2,430 | 383 | | Held-for-sale liabilities | 553,234 | 563,966 | 88,963 | | Deferred revenue | 200,000 | - | - | | Total current liabilities | 45,459,462 | 53,504,738 | 8,440,166 | | Non-current liabilities: | | | | | Long-term borrowings | 9,896,455 | 11,081,221 | 1,748,020 | | Convertible senior notes | 1,098,736 | 1,172,143 | 184,901 | | Accrued warranty costs - non current | 858,641 | 889,067 | 140,247 | | Financing lease liabilities | 236,373 | 203,162 | 32,048 | | Operating lease liabilities | 385,420 | 365,713 | 57,690 | | Deferred tax liability | 183,003 | 183,003 | 28,868 | | Long-term Payables | 568,495 | 575,455 | 90,776 | | Guarantee liabilities to related parties- non current | 9,642 | 9,066 | 1,430 | | Total non-current liabilities | 13,236,765 | 14,478,830 | 2,283,980 | | Total liabilities | 58,696,227 | 67,983,568 | 10,724,146 | | SHAREHOLDERS' EQUITY Ordinary shares (US$0.00002 par value, 500,000,000 shares authorized, 193,770,753 and 198,142,693 shares issued as of December 31, 2021 and March 31, 2022, respectively) | 26 | 27 | 4 | | Additional paid-in capital | 5,617,923 | 9,282,472 | 1,464,274 | | Statutory reserves | 700,244 | 700,244 | 110,461 | | Accumulated other comprehensive income | (154,375) | (147,342) | (23,243) | | Treasury stock, at cost; 2,945,840 ordinary shares as of December 31, 2021 and March 31, 2022 | (43,170) | (43,170) | (6,810) | | Accumulated retained earnings | 4,929,138 | 4,958,075 | 782,116 | | Total JinkoSolar Holding Co., Ltd. shareholders' equity | 11,049,786 | 14,750,306 | 2,326,802 | | Non-controlling interests | 3,237,471 | 9,692,876 | 1,529,014 | | Total shareholders' equity | 14,287,257 | 24,443,182 | 3,855,816 | | Total liabilities and shareholders' equity | 72,983,484 | 92,426,750 | 14,579,962 |