JinkoSolar Announces Fourth Quarter and Full Year 2022 Financial Results.

SHANGRAO, China: 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 its unaudited financial results for the fourth quarter and full year ended December 31, 2022.

Fourth Quarter and Full Year 2022 Business Highlights

Significant year-over-year growth in module shipments in the fourth quarter and full year 2022 on back of strong global demand.

At the end of 2022, we became the first module manufacturer in the world to have delivered a total of 130GW solar modules.

In December 2022, our high-efficiency N-Type monocrystalline silicon solar cell set a new record with maximum conversion efficiency of 26.4%, exceeding the record of 26.1% we set in October 2022.

At the end of 2022, the mass production efficiency of N-type TOPCon cells reached 25.1%, and the integrated cost of N-type modules was close to that of P-type modules.

N-type module shipments of approximately 7GW in the fourth quarter helped us achieve the 10GW target we set for the full year 2022.

Fourth Quarter 2022 Operational and Financial Highlights

Quarterly shipments were 16,802 MW (16,020 MW for solar modules, and 782 MW for cells and wafers), up 54.8% sequentially, and up 73.3% year-over-year.

Total revenues were RMB30.40 billion (US$4.41 billion), up 55.8% sequentially and up 85.5% year-over-year. The sequential and year-over-year increases were mainly attributable to an increase in the shipment of solar modules.

Gross profit was RMB4.28 billion (US$620.0 million), up 39.2% sequentially and up 61.7% year-over-year.

Gross margin was 14.1%, compared with 15.7% in Q3 2022 and 16.1% in Q4 2021. The sequential and year-over-year decreases were mainly due to an increase in the cost of silicon.

Net income attributable to JinkoSolar Holding Co., Ltd's ordinary shareholders was RMB709.7 million (US$102.9 million), compared with RMB549.8 million in Q3 2022 and RMB239.5 million in Q4 2021.

Adjusted net income attributable to JinkoSolar Holding Co., Ltd's ordinary shareholders, which excludes the impact from (i) a change in fair value of the convertible senior notes (the "Notes"), (ii) a change in fair value of long-term investment and (iii) the share based compensation expenses, was RMB312.4 million (US$45.3 million), compared with RMB427.5 million in Q3 2022 and RMB234.6 million in Q4 2021.

Basic and diluted earnings per ordinary share were RMB3.53 (US$0.51) and RMB1.46 (US$0.21), respectively. This translates into basic and diluted earnings per ADS of RMB14.11 (US$2.05) and RMB5.83 (US$0.85), respectively.

Full Year 2022 Operational and Financial Highlights

Annual shipments were 46,580 MW (including 44,520 MW for solar modules, and 2,060 MW for cells and wafers), up 84.5% year over year.

Total revenues were RMB83.53 billion (US$12.11 billion), up 104.6% year over year. The year-over-year increases were mainly attributable to an increase in the shipment of solar modules.

Gross profit was RMB12.35 billion (US$1.79 billion), up 85.4% year over year.

Gross margin of 14.8%, compared with 16.3% in full year of 2021. The decrease was mainly due to an increase in the cost of silicon.

Income from operations of RMB461.0 million (US$66.8 million), down 58.2% year over year.

Net income attributable to JinkoSolar Holding Co., Ltd's ordinary shareholders was RMB665.2 million (US$96.4 million), down 7.7% year over year.

Adjusted net income attributable to JinkoSolar Holding Co., Ltd's ordinary shareholders, which excludes the impact from (i) a change in fair value of the "Notes", (ii)a change in fair value of long-term investment and (iii)the share based compensation expenses, was RMB1.44 billion (US$208.3 million), up 1.7 times year over year.

Basic and diluted earnings per ordinary share were RMB3.36 (US$0.49) and RMB3.32 (US$0.48), respectively. This translates into basic and diluted earnings per ADS of RMB13.44 (US$1.95) and RMB13.28 (US$1.93), respectively.

Mr. Xiande Li, JinkoSolar's Chairman and Chief Executive Officer, commented, "We closed a challenging 2022 with satisfactory results as we delivered strong operational and financial performance in the fourth quarter. Leveraging our outstanding global supply chain management and marketing network, our total shipments and total revenue increased significantly year over year. At the end of 2022, we became the first in the industry to reach the milestone of delivering a total of 130GW solar modules. Throughout the year, as raw material costs continued to rise, we continued to optimize our cost structure relentlessly through technical advancement and manufacturing process improvement, which partially relieved the pressure on profitability. Annual shipments of high-efficiency premium N-type products exceeded 10 GW, further optimizing our product mix and gradually improving our profitability. Net income was approximately US$102.9million, up 29.1% sequentially, and nearly tripling year-over-year.

Throughout 2022, the growth in demand for solar products did not slow down despite the compounded challenges in the industry such as the surge in raw material costs, pandemic disruption and macroeconomic uncertainties. In particular, the energy crisis triggered by the Russia-Ukraine conflict caused prices of traditional energy to rise quickly and PV remained the optimum solution for countries to achieve energy transformation, because of its low-carbon footprint and...