Core Viewpoint - The company, Guoyin Jinzu (01606), has entered into a financing lease agreement with Qinghai Huangnan Yuedian New Energy Co., Ltd. for the purchase and lease of photovoltaic power station equipment valued at RMB 1.22 billion [1] Group 1 - The financing lease contract was signed on November 27, 2025, with a lease term of 192 months [1] - The leased equipment is located in Qinghai Province, China, specifically for photovoltaic power generation [1]

Core Viewpoint - The company, Guoyin Jinzu (01606), has entered into a financing lease agreement with Qinghai Huangnan Yuedian New Energy Co., Ltd. for the purchase and lease of photovoltaic power station equipment, indicating a strategic move into renewable energy financing [1] Group 1 - The financing lease contract was signed on November 27, 2025, with a total value of RMB 1.22 billion [1] - The lease term is set for 192 months, reflecting a long-term commitment to the renewable energy sector [1] - The leased equipment is located in Qinghai Province, China, highlighting the company's focus on solar energy projects [1]

Core Viewpoint - The company, Guoyin Jinzu (01606.HK), has entered into a financing lease agreement with Qinghai Huangnan Yuedian New Energy Co., Ltd. for the purchase and lease of photovoltaic power station equipment, which is expected to enhance the company's leasing business revenue and align with its business development strategy [1]. Group 1: Financing Lease Agreement - The financing lease contract was signed on November 27, 2025, with a total cost of RMB 1.22 billion for the leasing assets [1]. - The lease term is set for 192 months, indicating a long-term commitment to the leasing arrangement [1]. - The leased assets have a book net value of approximately RMB 1.5 billion, suggesting a significant investment in renewable energy infrastructure [1]. Group 2: Business Strategy - The financing lease agreement is part of the company's general and routine business operations, indicating a strategic move to expand its leasing business [1]. - The arrangement is expected to contribute positively to the company's revenue from financing leases, aligning with its overall business development strategy [1].

Core Viewpoint - JinkoSolar is accelerating asset disposals, including the sale of photovoltaic power station equipment and equity stakes, amid declining on-grid electricity prices and deteriorating financial performance [1][4][10]. Group 1: Asset Disposals - JinkoSolar announced the sale of photovoltaic power station equipment to China Construction Investment Leasing Co., Ltd. for a total of 286.52 million yuan, involving a grid-connected capacity of approximately 76.55 MW [1][3]. - This transaction follows a previous deal with CITIC Financial Leasing for a 320 MW household photovoltaic asset package, indicating a trend of rapid asset disposals within a short timeframe [2][4]. Group 2: Financial Performance - In 2024, JinkoSolar reported a revenue of 4.775 billion yuan, a year-on-year increase of 9.25%, but the net profit attributable to shareholders decreased by 15.39% to 324 million yuan [4][10]. - The company's non-recurring net profit significantly dropped by 41% to 148 million yuan, highlighting challenges in maintaining profitability despite revenue growth [4]. Group 3: Inventory and Operational Efficiency - JinkoSolar's inventory has been increasing annually, while inventory turnover rates have been declining, indicating a deterioration in operational efficiency [5][10]. - The company’s revenue growth is primarily driven by the expansion of self-owned power station capacity, which reached 6.45 GW by the end of 2024, a 20% year-on-year increase [7]. Group 4: Market Conditions and Pricing - The average on-grid electricity price for JinkoSolar in 2024 was approximately 0.487 yuan per kilowatt-hour, down from 0.580 yuan per kilowatt-hour in 2023, reflecting a significant price decline [7][8]. - The increase in curtailment rates and other market factors has adversely affected the company's profitability, with the growth in electricity generation outpacing revenue growth due to these constraints [8][9]. Group 5: Debt and Financial Structure - Since its IPO in 2020, JinkoSolar has raised over 10 billion yuan through various financing channels, but its interest-bearing debt has risen to over 18 billion yuan, indicating ongoing financial strain [10][12]. - As of the first quarter of 2025, the company had 6.5 billion yuan in cash but was burdened with over 18 billion yuan in interest-bearing debt, leading to a debt-to-asset ratio of 63.28%, higher than the industry average [12]. Group 6: Strategic Concerns - The strategy of "rolling development" and light asset operations is under scrutiny as the marginal benefits from asset sales are declining, raising concerns about the sustainability of this approach [14]. - JinkoSolar is facing a dilemma where asset sales are necessary to alleviate debt pressure, yet frequent disposals may weaken future profitability and asset quality [14].