Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document and Entity Information | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2022 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-34615 |
Entity Registrant Name | JinkoSolar Holding Co., Ltd. |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 1 Yingbin Road |
Entity Address, Address Line Two | Shangrao Economic Development Zone |
Entity Address, City or Town | Jiangxi Province |
Entity Address, Postal Zip Code | 334100 |
Entity Address, Country | CN |
Entity Common Stock, Shares Outstanding | 201,189,189 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Central Index Key | 0001481513 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Auditor Name | PricewaterhouseCoopers Zhong Tian LLP |
Auditor Firm ID | 1424 |
Auditor Location | Shanghai, the People’s Republic of China |
American Depositary Shares | |
Document and Entity Information | |
Title of 12(b) Security | American Depositary Shares, each representing fourordinary shares, par value US$0.00002 per share |
Trading Symbol | JKS |
Security Exchange Name | NYSE |
Ordinary shares | |
Document and Entity Information | |
Title of 12(b) Security | Ordinary shares, par value US$0.00002 per share* |
Business Contact [Member] | |
Document and Entity Information | |
Contact Personnel Name | Mengmeng (Pan) Li |
Entity Address, Address Line One | 1 Yingbin Road |
Entity Address, Address Line Two | Shangrao Economic Development Zone |
Entity Address, City or Town | Jiangxi Province |
Entity Address, Postal Zip Code | 334100 |
Entity Address, Country | CN |
City Area Code | 86-793 |
Local Phone Number | 858-8188 |
Contact Personnel Email Address | pan.li@jinkosolar.com |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) ¥ / shares shares | Dec. 31, 2020 CNY (¥) ¥ / shares shares | |
Total revenues | ¥ 31,000 | ¥ 83,127,296 | $ 12,052,325 | ¥ 40,826,521 | ¥ 35,129,459 |
Cost of revenues | (70,848,983) | (10,272,137) | (34,168,686) | (28,957,798) | |
Gross profit | 12,278,313 | 1,780,188 | 6,657,835 | 6,171,661 | |
Selling and marketing | (7,241,888) | (1,049,975) | (2,856,465) | (2,473,982) | |
General and administrative | (3,508,678) | (508,710) | (1,963,562) | (1,409,371) | |
Impairment of long-lived assets | (373,732) | (54,186) | (273,713) | (114,168) | |
Research and development | (724,769) | (105,082) | (461,590) | (389,192) | |
Total operating expenses | (11,849,067) | (1,717,953) | (5,555,330) | (4,386,713) | |
Income from operations | 429,246 | 62,235 | 1,102,505 | 1,784,948 | |
Interest expenses | (1,079,409) | (156,500) | (838,320) | (675,852) | |
Interest income | 588,706 | 85,354 | 214,291 | 216,618 | |
Subsidy income | 1,089,435 | 157,953 | 465,685 | 191,981 | |
Exchange gain/(loss), net | 1,025,891 | 148,741 | (355,499) | (336,523) | |
Other income, net | 1,571 | 228 | 1,911 | 2,292 | |
Income before income taxes | 1,976,709 | 286,596 | 1,089,903 | 566,372 | |
Income tax expenses | (605,278) | (87,757) | (194,140) | (178,411) | |
Equity in (loss)/income of affiliated companies | 193,708 | 28,085 | 59,809 | (52,706) | |
Net income | 1,565,139 | 226,924 | 955,572 | 335,255 | |
Less: Net income attributable to the non-controlling interests | (944,633) | (136,959) | (234,554) | (104,870) | |
Net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders | ¥ 620,506 | $ 89,965 | ¥ 721,018 | ¥ 230,385 | |
Net income/(loss) attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders per share - | |||||
Basic | (per share) | ¥ 3.13 | $ 0.45 | ¥ 3.78 | ¥ 1.29 | |
Diluted | (per share) | 3.10 | 0.45 | 2.01 | (1.36) | |
Net income/(loss) attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders per ADS- | |||||
Basic | (per share) | ¥ 12.54 | $ 1.82 | ¥ 15.12 | ¥ 5.15 | |
Diluted | 12.38 | 1.80 | 8.02 | (5.42) | |
Weighted average ordinary shares outstanding | |||||
Basic | 198,004,260 | 198,004,260 | 190,672,869 | 178,938,853 | |
Diluted | 200,408,494 | 200,408,494 | 205,719,772 | 171,438,853 | |
Number of ordinary shares per ADS | 4 | 4 | 4 | ||
Interest Rate Swap | |||||
Change in fair value of foreign exchange options | ¥ 0 | $ 0 | ¥ (78,878) | ||
Foreign Exchange Forward Contract [Member] | |||||
Change in fair value of foreign exchange options | (164,356) | (23,829) | ¥ 288,880 | 191,186 | |
long-term investment | |||||
Change in fair value of foreign exchange options | 101,871 | 14,770 | |||
Third Party [Member] | |||||
Total revenues | 82,794,101 | 12,004,016 | 40,794,758 | 35,067,287 | |
Related Party [Member] | |||||
Total revenues | 333,195 | 48,309 | 31,763 | 62,172 | |
Convertible Senior Notes and Call Options [Member] | |||||
Change in fair value of foreign exchange options | (12,083) | (1,752) | 191,641 | (725,792) | |
Foreign exchange option | |||||
Change in fair value of foreign exchange options | ¥ (4,163) | $ (604) | ¥ 18,809 | ¥ (3,608) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net income | ¥ 1,565,139 | $ 226,924 | ¥ 955,572 | ¥ 335,255 |
Other comprehensive income: | ||||
-Unrealized gain on available-for-sale securities | 973 | 141 | ||
-Change in fair value of interest rate swap cash flow hedges | (12,294) | |||
-Reclassification of change in instrument-specific credit risk | 0 | 0 | (14,252) | 0 |
-Change in instrument-specific credit risk | 100,158 | 14,522 | 56,224 | 60,326 |
-Foreign currency translation adjustments | 406,149 | 58,886 | (55,438) | (251,893) |
Comprehensive income | 2,072,419 | 300,473 | 929,812 | 143,688 |
Less: comprehensive income attributable to non-controlling interests | (1,079,975) | (156,582) | (234,554) | (104,870) |
Comprehensive income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders | ¥ 992,444 | $ 143,891 | ¥ 695,258 | ¥ 38,818 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 10,243,500 | $ 1,485,168 | ¥ 8,321,415 |
Restricted cash | 1,027,454 | 148,967 | 602,044 |
Restricted short-term investments | 8,945,271 | 1,296,942 | 9,261,918 |
Short-term investments | 0 | 0 | 150,000 |
Accounts receivable, net - related parties | 139,713 | 20,257 | 29,417 |
Accounts receivable, net - third parties | 16,674,876 | 2,417,630 | 7,471,103 |
Notes receivable - a related party | 282,824 | 41,006 | |
Notes receivable, net - third parties | 6,697,096 | 970,988 | 1,689,102 |
Advances to suppliers - a related party | 56,860 | 8,244 | |
Advances to suppliers - third parties | 3,271,284 | 474,292 | 1,536,155 |
Inventories, net | 17,450,284 | 2,530,053 | 13,252,352 |
Foreign exchange forward contract receivables | 119,625 | 17,344 | 73,532 |
Other receivables - related parties | 23,105 | 3,350 | 17,348 |
Held-for-sale assets | 0 | 0 | 684,631 |
Available-for-sale securities | 104,499 | 15,151 | |
Prepayments and other current assets | 3,290,903 | 477,136 | 2,435,057 |
Total current assets | 68,327,294 | 9,906,528 | 45,524,074 |
Non-current assets: | |||
Restricted long-term investments | 1,378,680 | 199,890 | 1,204,697 |
Accounts receivable, net - third parties | 0 | 0 | 27,624 |
Long-term investments | 1,711,072 | 248,083 | 633,866 |
Property, plant and equipment, net | 32,290,088 | 4,681,623 | 19,969,894 |
Land use rights, net | 1,431,424 | 207,537 | 1,090,057 |
Intangible assets, net | 79,600 | 11,541 | 55,484 |
Deferred tax assets | 704,244 | 102,106 | 371,767 |
Financing lease right-of-use assets, net | 558,407 | 80,961 | 628,592 |
Operating lease right-of-use assets, net | 396,966 | 57,555 | 438,271 |
Advances to suppliers to be utilized beyond one year | 310,375 | 45,000 | 296,709 |
Other assets - related parties | 52,363 | 7,592 | 3,292 |
Other assets - third parties | 1,421,669 | 206,123 | 2,739,160 |
Total non-current assets | 40,334,888 | 5,848,010 | 27,459,413 |
Total assets | 108,662,182 | 15,754,538 | 72,983,487 |
Current liabilities: | |||
Accounts payable - related parties | 0 | 0 | 15,863 |
Accounts payable - third parties | 10,378,076 | 1,504,680 | 6,799,854 |
Notes payable - a related party | 419,500 | 60,822 | |
Notes payable - third parties | 20,204,323 | 2,929,351 | 12,072,223 |
Accrued payroll and welfare expenses | 2,035,931 | 295,182 | 1,240,791 |
Advances from a related party | 3,829 | 555 | |
Advances from third parties | 9,220,267 | 1,336,813 | 5,914,354 |
Income tax payables | 737,735 | 106,962 | 214,856 |
Foreign exchange forward derivatives payables | 63,137 | 9,154 | 2,659 |
Financing lease liabilities - current | 168,381 | 24,413 | 194,939 |
Operating lease liabilities - current | 65,489 | 9,495 | 62,515 |
Short-term borrowings, including current portion of long-term borrowings, and failed sale-leaseback financing | 12,419,170 | 1,800,610 | 13,339,367 |
Other payables and accruals - third parties | 9,214,384 | 1,335,961 | 4,844,084 |
Other payables and accruals - a related party | 5,964 | 865 | 2,230 |
Guarantee liabilities to related parties | 0 | 0 | 2,500 |
Held-for-sale liabilities | 0 | 0 | 553,234 |
Deferred revenue | 0 | 0 | 200,000 |
Total current liabilities | 64,936,186 | 9,414,863 | 45,459,469 |
Non-current liabilities: | |||
Long-term borrowings | 13,022,795 | 1,888,128 | 9,896,455 |
Long-term payables | 601,759 | 87,247 | 568,495 |
Accrued warranty costs - non-current | 1,422,276 | 206,211 | 858,641 |
Financing lease liabilities - non-current | 69,881 | 10,131 | 236,374 |
Operating lease liabilities - non-current | 339,885 | 49,279 | 385,420 |
Convertible senior notes | 1,070,699 | 155,237 | 1,098,736 |
Deferred tax liability | 194,808 | 28,245 | 183,003 |
Guarantee liabilities to related parties - non-current | 0 | 0 | 9,642 |
Total non-current liabilities | 16,722,103 | 2,424,478 | 13,236,766 |
Total liabilities | 81,658,289 | 11,839,341 | 58,696,235 |
Commitment and contingencies | |||
Shareholders' equity: | |||
Ordinary shares (US$0.00002 par value, 500,000,000 shares authorized, 193,770,753 and 204,135,029 shares issued as of December 31, 2021 and December 31, 2022, respectively) | 28 | 4 | 26 |
Additional paid-in capital | 9,912,931 | 1,437,240 | 5,617,923 |
Accumulated other comprehensive (loss)/income | 217,563 | 31,544 | (154,375) |
Treasury stock, at cost; 2,945,840 ordinary shares as of December 31, 2021 and December 31, 2022, | (43,170) | (6,259) | (43,170) |
Retained earnings | 6,249,883 | 906,148 | 5,629,377 |
Total JinkoSolar Holding Co., Ltd. Shareholders' equity | 16,337,235 | 2,368,677 | 11,049,781 |
Non-controlling interests | 10,666,658 | 1,546,520 | 3,237,471 |
Total shareholders' equity | 27,003,893 | 3,915,197 | 14,287,252 |
Total liabilities, non-controlling interest and shareholders' equity | ¥ 108,662,182 | $ 15,754,538 | ¥ 72,983,487 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | May 31, 2019 | Feb. 28, 2018 |
CONSOLIDATED BALANCE SHEETS | ||||
Ordinary shares, par value | $ 0.00002 | $ 0.00002 | $ 0.00002 | $ 0.00002 |
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 | ||
Ordinary shares, shares issued | 204,135,029 | 193,770,753 | ||
Ordinary shares, shares outstanding | 201,189,189 | 190,824,913 | ||
Treasury stock at cost, shares | 2,945,840 | 2,945,840 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY $ in Thousands | Cumulative Effect Period Of Adoption Adjustment [Member] Ordinary shares CNY (¥) | Cumulative Effect Period Of Adoption Adjustment [Member] Additional paid in capital [Member] CNY (¥) | Cumulative Effect Period Of Adoption Adjustment [Member] Accumulated other comprehensive (loss)/income [Member] CNY (¥) | Cumulative Effect Period Of Adoption Adjustment [Member] Treasury stock [Member] CNY (¥) | Cumulative Effect Period Of Adoption Adjustment [Member] Retained earnings (Accumulated losses) [Member] CNY (¥) | Cumulative Effect Period Of Adoption Adjustment [Member] Non-controlling interests [Member] CNY (¥) | Cumulative Effect Period Of Adoption Adjustment [Member] CNY (¥) | Ordinary shares CNY (¥) shares | Additional paid in capital [Member] CNY (¥) | Accumulated other comprehensive (loss)/income [Member] CNY (¥) | Treasury stock [Member] CNY (¥) shares | Retained earnings (Accumulated losses) [Member] CNY (¥) | Non-controlling interests [Member] CNY (¥) | CNY (¥) shares | USD ($) shares |
Cumulative effect of adoption of new accounting standard | ¥ 25,000 | ¥ 4,582,850,000 | ¥ 62,952,000 | ¥ (13,876,000) | ¥ 4,671,367,000 | ¥ 3,137,709,000 | ¥ 12,441,027,000 | ||||||||
Beginning Balance at Dec. 31, 2019 | ¥ 25,000 | 4,582,850,000 | 62,952,000 | ¥ (13,876,000) | 4,671,367,000 | 3,137,709,000 | 12,441,027,000 | ||||||||
Beginning Balance (in shares) at Dec. 31, 2019 | shares | 180,653,497 | (1,723,200) | |||||||||||||
Share-based compensation expense | ¥ 0 | 923,000 | 0 | ¥ 0 | 0 | 0 | 923,000 | ||||||||
Common stock offering | ¥ 1,000 | 636,179,000 | 0 | ¥ 0 | 0 | 0 | ¥ 636,180,000 | ||||||||
Common stock offering (in shares) | shares | 5,976,272 | 0 | 5,976,272 | 5,976,272 | |||||||||||
Foreign currency exchange translation adjustment | ¥ 0 | 0 | (251,893,000) | ¥ 0 | 0 | 0 | ¥ (251,893,000) | ||||||||
Change in the instrument-specific credit risk | 0 | 0 | 60,326,000 | 0 | 0 | 0 | 60,326,000 | ||||||||
Subsidiary's offering of its equity interests | 0 | 0 | 0 | 0 | 0 | 3,100,000,000 | 3,100,000,000 | ||||||||
Contribution from principal shareholders | 0 | 139,854,000 | 0 | 0 | 0 | (139,854,000) | 0 | ||||||||
Repurchase of non-controlling interest | 0 | (20,625,000) | 0 | 0 | 0 | (266,062,000) | (286,687,000) | ||||||||
Equity financing in a subsidiary | 0 | 0 | 0 | 0 | 0 | 3,100,000,000 | 3,100,000,000 | ||||||||
Share Repurchase | 0 | 0 | 0 | ¥ (29,294,000) | 0 | 0 | (29,294,000) | ||||||||
Share Repurchase (in shares) | shares | (1,222,640) | ||||||||||||||
Exercise of share options | ¥ 0 | 83,562,000 | 0 | ¥ 0 | 0 | 0 | ¥ 83,562,000 | ||||||||
Exercise of share option (in shares) | shares | 3,750,540 | 0 | 3,750,540 | 3,750,540 | |||||||||||
Contribution from non-controlling interest shareholders | ¥ 0 | 0 | 0 | ¥ 0 | 0 | 865,000,000 | ¥ 865,000,000 | ||||||||
Net income | 0 | 0 | 0 | 0 | 230,385,000 | 104,870,000 | 335,255,000 | ||||||||
Settlement of non-controlling interests | 0 | (171,498,000) | 0 | 0 | 0 | (3,798,746,000) | (3,970,244,000) | ||||||||
Ending Balance at Dec. 31, 2020 | ¥ 0 | ¥ 0 | ¥ 0 | ¥ 0 | ¥ 6,607,000 | ¥ 0 | ¥ 6,607,000 | ¥ 26,000 | 5,251,245,000 | (128,615,000) | ¥ (43,170,000) | 4,908,359,000 | 3,002,917,000 | 12,990,762,000 | |
Ending Balance (in shares) at Dec. 31, 2020 | shares | 190,380,309 | (2,945,840) | |||||||||||||
Cumulative effect of adoption of new accounting standard | ¥ 0 | ¥ 0 | ¥ 0 | ¥ 0 | ¥ 6,607,000 | ¥ 0 | ¥ 6,607,000 | ¥ 26,000 | 5,251,245,000 | (128,615,000) | ¥ (43,170,000) | 4,908,359,000 | 3,002,917,000 | 12,990,762,000 | |
Share-based compensation expense | 0 | 9,884,000 | 0 | 0 | 0 | 0 | 9,884,000 | ||||||||
Foreign currency exchange translation adjustment | 0 | 0 | (55,438,000) | 0 | 0 | 0 | (55,438,000) | ||||||||
Change in the instrument-specific credit risk | 0 | 0 | 56,224,000 | 0 | 0 | 0 | 56,224,000 | ||||||||
Exercise of share options | ¥ 0 | 2,212,000 | 0 | 0 | 0 | 0 | ¥ 2,212,000 | ||||||||
Exercise of share option (in shares) | shares | 109,200 | 105,200 | 105,200 | ||||||||||||
Conversion of Convertible senior notes | ¥ 0 | 354,582,000 | (14,252,000) | 0 | 0 | 0 | ¥ 340,330,000 | $ 16,000 | |||||||
Conversion of Convertible senior notes (in shares) | shares | 3,281,244 | 3,281,244 | 3,281,244 | ||||||||||||
Net income | ¥ 0 | 0 | 0 | 0 | 721,018,000 | 234,554,000 | ¥ 955,572,000 | ||||||||
Change in fair value of interest rate swap cash flow hedges | 0 | 0 | (12,294,000) | 0 | 0 | 0 | (12,294,000) | ||||||||
Ending Balance at Dec. 31, 2021 | ¥ 26,000 | 5,617,923,000 | (154,375,000) | ¥ (43,170,000) | 5,629,377,000 | 3,237,471,000 | 14,287,252,000 | ||||||||
Ending Balance (in shares) at Dec. 31, 2021 | shares | 193,770,753 | (2,945,840) | |||||||||||||
Cumulative effect of adoption of new accounting standard | ¥ 26,000 | 5,617,923,000 | (154,375,000) | ¥ (43,170,000) | 5,629,377,000 | 3,237,471,000 | 14,287,252,000 | ||||||||
Share-based compensation expense | 0 | 987,259,000 | 0 | 0 | 0 | 13,610,000 | 1,000,869,000 | ||||||||
Foreign currency exchange translation adjustment | 0 | 0 | 270,807,000 | 0 | 0 | 135,342,000 | 406,149,000 | $ 58,886 | |||||||
Change in the instrument-specific credit risk | 0 | 0 | 100,158,000 | 0 | 0 | 0 | 100,158,000 | 14,522 | |||||||
Unrealized gain on available-for-sale securities | 0 | 0 | 973,000 | 0 | 0 | 0 | 973,000 | $ 141 | |||||||
Subsidiary's offering of its equity interests | 0 | 3,303,660,000 | 0 | 0 | 0 | 6,419,192,000 | 9,722,852,000 | ||||||||
Equity financing in a subsidiary | 0 | 3,303,660,000 | 0 | 0 | 0 | 6,419,192,000 | 9,722,852,000 | ||||||||
Exercise of share options | ¥ 2,000 | 3,853,000 | 0 | ¥ 0 | 0 | 0 | ¥ 3,855,000 | ||||||||
Exercise of share option (in shares) | shares | 10,364,276 | 0 | 175,536 | 175,536 | |||||||||||
Contribution from non-controlling interest shareholders | ¥ 0 | 0 | 0 | ¥ 0 | 0 | 17,000,000 | ¥ 17,000,000 | ||||||||
Net income | 0 | 0 | 0 | 0 | 620,506,000 | 944,633,000 | 1,565,139,000 | ||||||||
Settlement of non-controlling interests | 0 | 236,000 | 0 | 0 | 0 | (5,418,000) | (5,182,000) | ||||||||
Distribution of a subsidary's dividend to non-controlling interest holders | 0 | 0 | 0 | 0 | 0 | (95,172,000) | (95,172,000) | ||||||||
Ending Balance at Dec. 31, 2022 | ¥ 28,000 | 9,912,931,000 | 217,563,000 | ¥ (43,170,000) | 6,249,883,000 | 10,666,658,000 | 27,003,893,000 | $ 3,915,197 | |||||||
Ending Balance (in shares) at Dec. 31, 2022 | shares | 204,135,029 | (2,945,840) | |||||||||||||
Cumulative effect of adoption of new accounting standard | ¥ 28,000 | ¥ 9,912,931,000 | ¥ 217,563,000 | ¥ (43,170,000) | ¥ 6,249,883,000 | ¥ 10,666,658,000 | ¥ 27,003,893,000 | $ 3,915,197 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Cash flows from operating activities: | ||||
Net income | ¥ 1,565,139 | $ 226,924 | ¥ 955,572 | ¥ 335,255 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Share-based compensation charge: | 1,000,869 | 145,112 | 9,884 | 923 |
Change in fair value of foreign exchange options | 4,163 | 604 | (18,809) | 3,608 |
Change in fair value of convertible senior notes | 12,083 | 1,752 | (327,762) | 1,202,082 |
Change in fair value of interest rate swap | 0 | 0 | 0 | 78,878 |
Deferred income taxes | (320,673) | (46,493) | (262,370) | 94,158 |
Change in fair value of long-term investment | (101,871) | (14,770) | ||
Depreciation of property, plant and equipment | 2,585,000 | 374,792 | 1,603,786 | 1,160,851 |
Amortization of right-of-use assets | 129,869 | 18,829 | 135,791 | 146,965 |
Depreciation of project assets | 0 | 0 | 32,559 | 52,830 |
Amortization of land use rights | 27,353 | 3,966 | 18,031 | 12,379 |
Amortization of intangible assets | 17,324 | 2,512 | 11,904 | 10,177 |
Amortization of guarantee liability | 0 | 0 | (6,364) | (14,688) |
Inventory write-down | 1,819,000 | 263,754 | 823,273 | 270,893 |
Provision for expected credit loss | 285,394 | 41,378 | 82,427 | 14,086 |
Loss on disposal of property, plant and equipment and land use right | 248,500 | 36,029 | 350,336 | 428,115 |
Amortization of deferred losses related to sale-leaseback transactions | 0 | 0 | 13,424 | 27,503 |
Impairment of long-lived assets | 373,732 | 54,186 | 273,713 | 114,168 |
Equity in loss/(income) of affiliated companies | (193,708) | (28,085) | (59,809) | 52,706 |
Gain on disposal of investment in subsidiaries | (14,232) | (2,063) | 0 | 0 |
Exchange (gain)/loss, net | (1,025,891) | (148,740) | 355,499 | 336,523 |
Changes in operating assets and liabilities (net of impact of disposition): | ||||
(Increase)/decrease in accounts receivable - third parties | (8,610,986) | (1,248,476) | (3,666,406) | 362,087 |
(Increase)/decrease in accounts receivable - related parties | (115,300) | (16,717) | 364,677 | 89,587 |
(Increase)/decrease in notes receivable - third parties | (5,006,954) | (725,940) | (638,398) | 478,057 |
(Increase)/decrease in notes receivable - a related party | (282,824) | (41,006) | 33,001 | (14,373) |
(Increase)/decrease in advances to suppliers - third parties | (1,706,688) | (247,446) | (856,574) | 1,536,442 |
Increase in advances to suppliers - a related party | (56,860) | (8,244) | ||
Increase in inventories | (6,053,218) | (877,634) | (5,698,689) | (2,822,713) |
decrease in project assets constructed for sale, net of incremental revenue | 976,713 | |||
Decrease in lease liabilities | (22,365) | (3,243) | (50,426) | (36,498) |
(Increase)/decrease in other receivables - related parties | (6,248) | (906) | 6,408 | 30,562 |
Increase in prepayments and other current assets | (277,283) | (40,201) | (208,125) | (1,112,029) |
Decrease in other assets - related parties | 3,417 | 495 | 104,027 | 0 |
Decrease in other assets - third parties | 621,880 | 90,164 | (139,877) | (75,445) |
Increase in land use right | (473,806) | (68,695) | (347,126) | (176,283) |
Increase/(decrease) in accounts payable - third parties | 3,588,939 | 520,347 | 2,644,118 | (367,054) |
Increase/(decrease) in accounts payable - related parties | (15,863) | (2,300) | 1,750 | (22,196) |
Increase in accrued payroll and welfare expenses | 795,140 | 115,285 | 245,737 | 115,537 |
Increase in deferred revenue | 200,000 | |||
Increase/(decrease) in advances from - third parties | 3,289,191 | 476,888 | 3,533,231 | (1,792,906) |
Increase/(decrease) in advances from - a related party | 3,829 | 555 | 0 | (749) |
Increase/(decrease) in income tax payables | 522,879 | 75,810 | 141,136 | (44,763) |
Decrease in derivative liability - interest rate swap | 0 | 0 | 0 | (140,150) |
Increase in other payables and accruals - third parties | 1,572,549 | 227,998 | 599,618 | 687,122 |
Increase/(decrease) in other payables and accruals - a related party | 3,734 | 541 | (69,285) | 58,388 |
Decrease of long-term borrowings related to sale of project assets constructed for sale | 0 | 0 | 0 | (859,166) |
Net cash provided by / (used in) operating activities | (5,800,784) | (841,035) | 430,646 | 591,486 |
Cash flows from investing activities: | ||||
Maturity of restricted short-term investments | 8,494,069 | 1,231,524 | 10,501,200 | 10,075,360 |
Maturity of short-term investments | 150,000 | 21,748 | 723,000 | |
Maturity of restricted long-term investments | 1,232,960 | 178,762 | 1,648,698 | 790,398 |
Proceeds from disposal of property, plant and equipment and land use right | 714,176 | 103,546 | 20,458 | 88,717 |
Proceeds from pro rata decrease in an equity investment | 94,284 | 13,670 | ||
Proceeds from disposal of an equity investment | 15,000 | 2,175 | ||
Net of cash disposed of, cash payment from, disposal of subsidiaries | (91,334) | (13,242) | 48,078 | |
Purchase of property, plant and equipment | (12,251,348) | (1,776,279) | (8,653,859) | (4,055,060) |
Cash paid for project assets constructed to operate | (76,351) | |||
Cash paid for investment in affiliates | (615,100) | (89,181) | (315,000) | |
Purchase of intangible assets | (42,415) | (6,150) | (32,261) | (14,566) |
Purchase of restricted short-term investments | (8,177,423) | (1,185,615) | (13,362,480) | (9,552,996) |
Purchase of restricted long-term investments | (1,406,943) | (203,987) | (1,464,202) | (1,648,436) |
Purchase of short-term investments | (303,000) | (570,000) | ||
Purchase of a subsidiary | (19,432) | |||
Cash paid for investment in equity securities | (227,000) | (32,912) | (95,000) | |
Loan to third party | (23,459) | (3,401) | ||
Deposits provided for an equity investment | (37,854) | (5,488) | ||
Purchase of available-for-sale securities | (100,000) | (14,499) | ||
Cash received from dividend | 23,213 | 15,598 | ||
Net cash used in investing activities | (12,272,387) | (1,779,329) | (11,309,233) | (4,918,690) |
Cash flows from financing activities: | ||||
Proceeds from exercise of call option | 621,059 | |||
Proceeds from issuance of ordinary shares | 641,065 | |||
Subsidiary's offering of its equity interests | 9,770,000 | 1,416,517 | ||
Cash payment for transaction costs of subsidiary's offering | (47,148) | (6,836) | ||
Settlement of non-controlling interests | (5,182) | (751) | ||
Cash payment for finance lease as lessee | (216,722) | (31,422) | (286,292) | (252,485) |
Proceeds from exercise of share options | 5,000 | 729 | 10,185 | 114,758 |
Payment of deposit for finance lease as lessee | (4,257) | |||
Capital contributions from non-controlling interest holder | 17,000 | 2,465 | 865,000 | |
Proceeds from bank borrowings | 29,663,730 | 4,300,837 | 30,445,781 | 24,104,976 |
Repayment of borrowings | (27,624,208) | (4,005,134) | (24,280,437) | (25,337,297) |
Increase in notes payable - related party | 419,500 | 60,822 | ||
Increase in notes payable - third party | 8,132,100 | 1,179,044 | 2,737,347 | 1,816,307 |
Payment of a subsidiary's dividend to non-controlling interest holders | (95,172) | (13,799) | ||
Equity financing in a subsidiary | 3,100,000 | |||
Borrowings from government background funds | 2,133,400 | 2,202,000 | ||
Repurchase of shares | (29,294) | |||
Repurchase of non-controlling interest | (286,686) | |||
Net cash provided by financing activities | 20,018,922 | 2,902,472 | 12,017,851 | 6,297,279 |
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash | 227,957 | 33,050 | (116,790) | (169,261) |
Net increase in cash, cash equivalents, and restricted cash | 2,173,708 | 315,158 | 1,022,474 | 1,800,814 |
Cash, cash equivalents, and restricted cash, beginning of the year | 9,097,246 | 1,318,977 | 8,074,772 | 6,273,958 |
Cash, cash equivalents, and restricted cash, end of the year | 11,270,954 | 1,634,135 | 9,097,246 | 8,074,772 |
Supplemental disclosure of cash flow information | ||||
Cash paid for income tax | 400,338 | 58,044 | 157,366 | 357,781 |
Cash paid for interest expenses (net of amounts capitalized) | 1,072,812 | 155,543 | 801,873 | 670,160 |
Supplemental disclosure of non-cash investing and financing cash flow information | ||||
Purchases of property, plant and equipment included in payables | 5,674,455 | 822,719 | 2,756,446 | 1,648,427 |
Proceeds from exercise of share options received in subsequent period | 1,169 | 9,143 | ||
Receivables related to At-The-Market offering | 641,065 | |||
Receivables related to disposal of Property, plant and equipment | 378,900 | 54,935 | 111,804 | 92,735 |
Disposal of equity securities with consideration offset against payable balance due to third party | 7,200 | |||
Conversion of convertible senior notes to ordinary shares | 340,330 | |||
Change in fair value of derivative forward contracts | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Change in fair value of foreign exchange forward contracts | 13,818 | 2,003 | 104,643 | (129,806) |
Capped Call Options [Member]. | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Change in fair value of call option | ¥ 0 | $ 0 | ¥ 136,121 | ¥ (476,290) |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2022 | |
ORGANIZATION AND NATURE OF OPERATIONS | |
ORGANIZATION AND NATURE OF OPERATIONS | 1. ORGANIZATION AND NATURE OF OPERATIONS JinkoSolar Holding Co., Ltd. (the “Company” or “JinkoSolar Holding”) was incorporated in the Cayman Islands on August 3, 2007. On May 14, 2010, the Company became listed on the New York Stock Exchange (“NYSE”) in the United States. The Company and its subsidiaries (collectively the “Group”) are principally engaged in the design, development, production and marketing of photovoltaic products as well as developing commercial solar power projects. The following table sets forth information concerning the Company’s major subsidiaries as of December 31, 2022: Date of Incorporation Place of Percentage Subsidiaries /Acquisition Incorporation of ownership JinkoSolar Investment Limited. (“Paker”) November 10, 2006 Hong Kong 100 % Jinko Solar Co., Ltd. (“Jiangxi Jinko”) (Note 24) December 13, 2006 PRC 58.6 % Zhejiang Jinko Solar Co., Ltd. (“Zhejiang Jinko”) June 30, 2009 PRC 58.6 % Jinko Solar Import and Export Co., Ltd. (“Jinko Import and Export”) December 24, 2009 PRC 58.6 % JinkoSolar GmbH (“Jinko GmbH”) April 1, 2010 Germany 58.6 % Zhejiang Jinko Trading Co., Ltd. (“Zhejiang Trading”) June 13, 2010 PRC 58.6 % Xinjiang Jinko Solar Co., Ltd. (“Xinjiang Jinko”) May 30, 2016 PRC 58.6 % Yuhuan Jinko Solar Co., Ltd. (“Yuhuan Jinko”) July 29, 2016 PRC 58.6 % JinkoSolar (U.S.) Inc. (“Jinko US”) August 19, 2010 USA 58.6 % Jiangxi Photovoltaic Materials Co., Ltd. (“Jiangxi Materials”) December 1, 2010 PRC 58.6 % JinkoSolar (Switzerland) AG (“Jinko Switzerland”) May 3, 2011 Switzerland 58.6 % JinkoSolar (US) Holdings Inc. (“Jinko US Holding”) June 7, 2011 USA 58.6 % JinkoSolar Italy S.R.L. (“Jinko Italy”) July 8, 2011 Italy 58.6 % Jinko Solar Canada Co., Ltd. (“Jinko Canada”) November 18, 2011 Canada 58.6 % Jinko Solar Australia Holdings Co. Pty Ltd. (“Jinko Australia”) December 7, 2011 Australia 58.6 % Jinko Solar Japan K.K. (“JinkoSolar Japan”) May 21, 2012 Japan 58.6 % Date of Incorporation Place of Percentage Subsidiaries /Acquisition Incorporation of ownership Jinko Solar (Shanghai) Management Co., Ltd. July 25, 2012 PRC 58.6 % Wide Wealth Group Holding Limited. (“Wide Wealth Hong Kong”) June 11, 2012 Hong Kong 100 % Canton Best Limited (“Canton Best BVI”) September 16, 2013 BVI 100 % Jinko Solar Technology Sdn.Bhd. January 21, 2015 Malaysia 58.6 % JinkoSolar International Development Limited. August 28, 2015 Hong Kong 100 % JinkoSolar Middle East DMCC (“DMCC”) November 6, 2016 Emirates 58.6 % JinkoSolar Trading Privated Limited. February 6, 2017 India 58.6 % JinkoSolar LATAM Holding Limited. August 22, 2017 Hong Kong 100 % JinkoSolar (U.S.) Industries Inc. November 16, 2017 USA 58.6 % JinkoSolar Technology (Haining) Co., Ltd. (“Haining Jinko”)* December 15, 2017 PRC 45.9 % Poyang Ruilixin Information Technology Co., Ltd. December 19, 2017 PRC 58.6 % Jinko Solar Korea Co., Ltd. (“Jinko Korea”) December 3, 2018 Korea 58.6 % JinkoSolar (Sichuan) Co., Ltd. (“Jinko Sichuan”)* February 18, 2019 PRC 38.4 % JinkoSolar (Qinghai) Co., Ltd. (“Jinko Qinghai”)* April 3, 2019 PRC 32.2 % Rui Xu Co., Ltd. (“Rui Xu”)* July 24, 2019 PRC 35.2 % JinkoSolar (Yiwu) Co., Ltd. (“Jinko Yiwu”)* September 19, 2019 PRC 32.2 % Jinko PV Material Supply SDN. BHD September 23, 2019 Malaysia 58.6 % JinkoSolar (Vietnam) Co., Ltd. September 26, 2019 Vietnam 58.6 % JinkoSolar (Chuzhou) Co., Ltd. (“Jinko Chuzhou”)* December 26, 2019 PRC 32.2 % Zhejiang New Materials Co., Ltd. (“Zhejiang New Materials”) March 24, 2020 PRC 58.6 % JinkoSolar (Shangrao) Co., Ltd. (“Jinko Shangrao”)* April 17, 2020 PRC 32.2 % Jinko Solar Denmark ApS May 28, 2020 Denmark 58.6 % JinkoSolar Hong Kong Limited August 17, 2020 Hong Kong 58.6 % Jinko Solar (Malaysia) SDN BHD August 28, 2020 Malaysia 58.6 % JinkoSolar (Chuxiong) Co., Ltd. (“Jinko Chuxiong”) September 25, 2020 PRC 58.6 % Yiwu New Materials Co., Ltd. (“Yiwu Materials”) October 14, 2020 PRC 58.6 % Jinko Solar (Vietnam) Industries Company Limited. March 29, 2021 Vietnam 58.6 % JinkoSolar (Leshan) Co., Ltd. (“Jinko Leshan”) April 25, 2021 PRC 58.6 % JinkoSolar (Anhui) Co., Ltd. (“Jinko Anhui”) * September 3, 2021 PRC 32.2 % JinkoSolar (Yushan) Co., Ltd. (“Jinko Yushan”) * September 26, 2021 PRC 46.9 % Fengcheng Jinko PV Materials Co., Ltd August 11, 2021 PRC 58.6 % JinkoSolar (Feidong) Co., Ltd. (“Jinko Feidong”) * September 23, 2021 PRC 32.2 % JinkoSolar (Jinchang) Co., Ltd. (“Jinko Jinchang”) September 24, 2021 PRC 58.6 % JinkoSolar (Poyang) Co., Ltd. (“Jinko Poyang”) December 1, 2021 PRC 58.6 % Shangrao Changxin Enterprise Management Center LP. December 16, 2021 PRC 100 % Shangrao Changxin No. 1 Enterprise Management Center LP. February 17, 2022 PRC 100 % Shangrao Changxin No. 2 Enterprise Management Center LP. February 17, 2022 PRC 100 % Shangrao Changxin No. 3 Enterprise Management Center LP. June 15, 2022 PRC 100 % Shangrao Changxin No. 5 Enterprise Management Center LP. June 15, 2022 PRC 100 % Shangrao Changxin No. 6 Enterprise Management Center LP. October 25, 2022 PRC 100 % Jiaxing Jinyue Phase I Venture Capital Partnership April 26, 2022 PRC 78.2 % Shangrao Jinko PV Manufacturing Co., Ltd. March 28, 2022 PRC 58.6 % Shangrao Guangxin Jinko PV Manufacturing Co., Ltd March 23, 2022 PRC 58.6 % Jinko Energy Storage Technology Co., Ltd. December 6, 2022 PRC 58.6 % Jiangxi Jinko Energy Storage Co., Ltd May 26, 2022 PRC 58.6 % * These entities are subsidiaries of Jiangxi Jinko with non-controlling interest. The percentage of ownership is the economic interest calculated as the multiple of the Company’s ownership in Jiangxi Jinko and Jiangxi Jinko’s ownership in such subsidiary. (i) In the fourth quarter of 2016, JinkoSolar Technology Limited (formally known as Paker Technology Limited) disposed of Zhejiang Jinko Financial Leasing Co., Ltd. with the consideration of RMB183 million (USD26 million). Loss on disposal of this subsidiary amounted to RMB15 million (USD2 million) was recognized. Consideration associated with the transaction amounted to RMB128 million and RMB42 million was collected in the years of 2019 and 2020, respectively. (ii) Haining Jinko was founded by the Group in the year of 2017 and is principally engaged in the production of photovoltaic products, such as solar modules and cells, for intercompany sales within the Group. In the second and third quarter of 2018, government background companies made capital injection with the amounted of RMB517 million into Haining Jinko. In the third quarter of 2019, to support developments of local enterprise, government background funds of Zhejiang province made investment into Haining Jinko as capital injections through limited partnership established together with Zhejiang Jinko. The total capital injection received from government funds in the year of 2019 amounted to RMB846 million. The Group’s percentage of ownership in Haining Jinko was 56.4% as at December 31, 2019. During the year of 2020, the Group repurchased certain of the noncontrolling interests with the consideration of RMB287 million, with the difference between the consideration and the carrying amount of noncontrolling interests charged to additional paid-in capital with the amount of RMB21 million. In addition, in the fourth quarter of 2020, certain of the non-controlling interest arrangements were settled in return for a loan liability pursuant to a supplementary investment agreement between the Group and the government background fund (Note 18). (iii) In the second quarter of 2019, Jiangxi Jinko, together with government background funds, established Jinko Sichuan. Cash capital injections with the amount of RMB800 million and RMB200 million had been made by the non-controlling shareholders in 2019 and 2020, respectively. The Group controls and consolidates the entity in its financial statements. Jinko Sichuan is principally engaged in the production of silicon ingot for intercompany sales within the Group. In the fourth quarter of 2020, the non-controlling interest arrangement was settled in return for a loan liability pursuant to a supplementary investment agreement between the Group and the government background fund (Note 18). (iv) In the fourth quarter of 2019, Jiangxi Jinko, together with government background funds, established Jinko Chuzhou. Cash capital injections with the amount of RMB550 million and RMB300 million had been made by the non-controlling shareholder in 2019 and 2020, respectively. The Group owns controls and consolidates such entity in its financial statements. Jinko Chuzhou is principally engaged in the production of solar modules for intercompany sales within the Group. In the third quarter of 2020, the non-controlling interest arrangement was settled in return for a loan liability pursuant to a supplementary investment agreement between the Group and the government background fund (Note 18). (v) In the fourth quarter of 2019, Jiangxi Jinko, together with government background funds, established Jinko Yiwu. Cash capital injections with the amount of RMB400 million and RMB365 million had been made by the non-controlling shareholders in 2019 and 2020, respectively. The Group owns controls and consolidates such entity in its financial statements. Jinko Yiwu is principally engaged in the production of solar modules for intercompany sales within the Group. In the third quarter of 2020, the non-controlling interest arrangement was settled in return for a loan liability pursuant to a supplementary investment agreement between the Group and government background funds (Note 18). (vi) In the second quarter of 2020, Jiangxi Jinko, together with a government background fund, established Jinko Shangrao. Cash capital injections with the amount of RMB1,902 million had been made by the government fund as of December 31, 2020. The group owns controls and consolidates such entity in its financial statements. Shangrao Jinko is principally engaged in the production of photovoltaic products, such as solar modules and cells (Note 18). (vii) In the second quarter of 2020, Jiangxi Materials acquired Rui Xu with a consideration of RMB20 million. Rui Xu is principally engaged in the production of photovoltaic consumable materials. (viii) In the fourth quarter of 2020, the Group disposed all of it’s equity interest in Jinko Huineng Technology Services Co.,Ltd to JinkoPower with the consideration of RMB10 million (USD2 million). Consideration associated with the transaction was collected in December 2020. |
PRINCIPAL ACCOUNTING POLICIES
PRINCIPAL ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
PRINCIPAL ACCOUNTING POLICIES | |
PRINCIPAL ACCOUNTING POLICIES | 2. PRINCIPAL ACCOUNTING POLICIES a. Basis of presentation and use of estimates The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of consolidated financial statements in conformity with U.S. GAAP requires management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Group bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Company’s consolidated financial statements include expected credit loss provision, provision for inventories, impairment of long-lived assets, the economic useful lives of property, plant and equipment, project assets and intangible assets, certain accrued liabilities including accruals for warranty costs, guarantees, sale-leaseback, accounting for share-based compensation, fair value measurements of share-based compensation and financial instruments, legal contingencies, income taxes and related deferred tax valuation allowance. b. Consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. For the Group’s majority-owned subsidiaries, non-controlling interests is recognized to reflect the portion of their equity interests which are not attributable, directly or indirectly, to the Group. Consolidated net income on the consolidated statement of operation includes the net income attributable to non-controlling interests. The cumulative results of operations attributable to non-controlling interests are recorded as non-controlling interests in the Group’s consolidated balance sheets. Cash flows related to transactions with non-controlling interests are presented under financing activities in the consolidated statements of cash flows. c. Foreign currency translation The Group’s reporting currency is the Renminbi (“RMB”), the official currency in the PRC. The Company and its PRC subsidiaries use RMB as their functional currency, while local currencies have been determined to be the functional currency of its subsidiaries incorporated outside of PRC such as USD or EUR etc. Transactions denominated in currencies other than the functional currency are translated into the functional currency of the entity at the exchange rates prevailing at the dates of the transactions. Gains and losses resulting from foreign currency transactions are included in the consolidated statements of operations. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency of the entity using the applicable exchange rates at the applicable balance sheet dates. All such exchange gains or losses are included in exchange loss in the consolidated statements of operations. For consolidation purpose, the financial statements of the Company’s subsidiaries whose functional currencies are other than the RMB are translated into RMB using exchange rates quoted by PBOC. Assets and liabilities are translated at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and revenues, expenses and gains and losses are translated using the average exchange rates for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of in accumulated other comprehensive income in the consolidated statement of comprehensive income/ (loss). The RMB is not a freely convertible currency. The PRC State Administration for Foreign Exchange, under the authority of PBOC, controls the conversion of RMB into foreign currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in China’s foreign exchange trading system market. The Company’s aggregate amount of cash, cash equivalents, restricted short-term investments and restricted cash denominated in RMB amounted to RMB16,672 million and RMB 14,243 million as of December 31, 2021 and 2022, respectively. d. Cash, cash equivalents and restricted cash Cash and cash equivalents represent cash on hand and demand deposits placed with banks or other financial institutions, which have original maturities of three months or less. Restricted cash represents deposits legally held by banks which are not available for the Group’s general use. These deposits are held as collateral for issuance of letters of credit or guarantee, bank acceptance notes to vendors for purchase of machinery and inventories and foreign exchange forward contracts. Cash, cash equivalents and restricted cash as reported in the consolidated statement of cash flows are presented separately As of December 31, 2021 2022 RMB RMB Cash and cash equivalents 8,321,415 10,243,500 Restricted cash 602,044 1,027,454 Cash and cash equivalents included in held-for-sale assets (note 2 (n)) 173,787 — Total 9,097,246 11,270,954 e. Restricted short-term investments Restricted short-term investments represent the time deposits at banks with original maturities longer than three months and less than one year, which are held as collateral for issuance of letters of credit, guarantee, bank acceptance notes or deposits for short-term borrowings. f. Notes receivable and payable Notes receivable represents bank or commercial drafts that have been arranged with third-party financial institutions by certain customers to settle their purchases from the Group. The carrying amount of notes receivable approximate their fair values due to the short-term maturity of the notes receivables. The Group also issues bank acceptance notes to its suppliers in China in the normal course of business. The Group classifies the changes in notes payable as financing activities. Notes receivable and payable are typically non-interest bearing and have maturities of less than six months. g. Derivative Instruments Derivative instruments are carried at fair value. The fair values of the derivative financial instruments generally represent the estimated amounts expect to receive or pay upon termination of the contracts as of the reporting date. The Company’s derivative instruments primarily consisted of foreign currency forward contracts and foreign exchange options which are used to economically hedge certain foreign denominated assets/liabilities and reduce, to the extent practicable, the potential exposure to the changes that exchange rates might have on the Company’s earnings, cash flows and financial position. As the derivative instruments do not qualify for hedge accounting treatment, changes in the fair value are reflected in “change in fair value of foreign exchange forward contracts” and “change in fair value of foreign exchange options” of the consolidated statements of operations. The Company’s solar project subsidiaries located in Mexico obtained long-term bank borrowings from local bank, which carries variable interest rates. With an aim to reduce its interest rate exposure, the Company entered into long-term interest rate swap contracts to fix the interest rate as a fixed rate payer. The interest rate swap is a derivative which needs to be fair valued at each reporting period end. As the derivative instrument does not qualify for hedge accounting treatment, the fair value gain or loss arising from the measurement is recognized in the consolidated statements of operations. The Company sold its solar power plants in Mexico in March 2020. The Company’s solar project subsidiary located in Argentina entered into an interest rate swap contract to swap floating interest payments related to certain borrowings for fixed interest payments to hedge the interest rate risk associated with certain forecasted payments and obligations. As the interest rate derivative is designated as cash flow hedge and the hedge is highly effective, all changes in the fair value of the derivative hedging instruments are recorded in other comprehensive income. The Company sold its solar power plants in Argentina in June 2022. h. Current expected credit losses In 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASC Topic 326”), which amends previously issued guidance regarding the impairment of financial instruments by creating an impairment model that is based on expected losses rather than incurred losses. The Company adopted this ASC Topic 326 and several associated ASUs on January 1, 2020 using a modified retrospective approach with a cumulative effect recorded as increase of accumulated retained earnings with amount of RMB7 million, among which RMB31 million was related to the decrease of allowance for accounts receivables-third parties, RMB15 million was related to the increase of allowance for accounts receivables- related parties and RMB9 million was related to the increase of allowance for other receivables and other current/non-current assets. As of January 1, 2020, upon the adoption, the expected credit loss provision for the current and non-current assets were RMB307 million and RMB5 million, respectively. The Company’s trade receivable, notes receivable, guarantee receivables, deposits and other receivables are within the scope of ASC Topic 326. The allowance is management’s estimate of expected credit losses on receivables. The Company estimated the allowance by segmenting receivables into groups based on certain credit risk characteristics, including geographic region and industry. The Company determined an expected loss rate for each group based on the historical credit loss experience, current and future economic conditions, and lifetime for debt recovery. For the year ended December 31, 2020, the Company recorded RMB14 million expected credit loss expense in general and administrative expenses. As of December 31, 2020, the expected credit loss provision for the current and non-current assets were RMB324 million and RMB2 million, respectively. For the year ended December 31, 2021, the Company recorded RMB82 million expected credit loss expense in general and administrative expenses. As of December 31, 2021, the expected credit loss provision for the current and non-current assets were RMB331 million and RMB4 million, respectively. For the year ended December 31, 2022, the Company recorded RMB285 million expected credit loss expense in general and administrative expenses. As of December 31, 2022, the expected credit loss provision for the current and non-current assets were RMB600 million and RMB2 million, respectively. i. Accounts receivable Specific provisions are made against accounts receivable for estimated losses resulting from the inability of the Group’s customers to make payments. The Group periodically assesses accounts receivable balances to determine whether an allowance for credit losses should be made based upon historical bad debts, specific customer creditworthiness and current economic trends. Accounts receivable in the balance sheets are stated net of such provision, if any. Before approving sales to each customer, the Group conducts a credit assessment for each customer to evaluate the collectability of such sales. The assessment usually takes into consideration the credit worthiness of such customer and its guarantor, if any, the Group’s historical payment experience with such customer, industry-wide trends with respect to credit terms, including the terms offered by competitors, and the macro-economic conditions of the region to which sales will be made. The Group executes a sales order with a customer and arrange for shipment only if its credit assessment concludes that the collectability with such customer is probable. The Group may also from time to time require security deposits from certain customers to minimize its credit risk. After the sales are made, the Group closely monitors the credit situation of each customer on an on-going basis for any subsequent change in its financial position, business development and credit rating, and evaluates whether any of such adverse change warrants further action to be taken by the Group, including asserting claims and/or initiating legal proceedings against the customer and/or its guarantor, as well as making provisions. It is also the Group’s general practice to suspend further sales to any customer with significant overdue balances. The Group adopted ASC 326 on January 1, 2020 and has also made updates to its policies and internal controls over financial reporting as a result of adoption. Details please refer to Note 2 (h) above. j. Advances to suppliers The Group provides short-term and long-term advances to secure its raw material needs, which are then offset against future purchases. The Group continually assesses the credit quality of its suppliers and the factors that affect the credit risk. If there is deterioration in the creditworthiness of its suppliers, the Group will seek to recover its advances to suppliers and provide for losses on advances which are akin to receivables in operating expenses because of suppliers’ inability to return its advances. Recoveries of the allowance for advances to supplier are recognized when they are received. The Company classified short-term and long-term advances to suppliers based on management’s best estimate of the expected purchase in the next twelve-months as of the balance sheet date and the Group’s ability to make requisite purchases under existing supply contracts. The balances expected to be utilized outside of the 12 months are recorded in advances to suppliers to be utilized beyond one year. No provision of advance to suppliers was recorded for the years ended December 31, 2020, 2021 and 2022. k. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the weighted average method. Provisions are made for excessive, slow moving and obsolete inventories as well as for inventories with carrying values in excess of market. Certain factors could impact the realizable value of inventory, so the Group continually evaluates the recoverability based on assumptions about customer demand and market conditions. The evaluation may take into consideration historical usage, expected demand, anticipated sales price, new product development schedules, the effect new products might have on the sale of existing products, product obsolescence, customer concentrations, and other factors. The reserve or write-down is equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory reserves or write-downs may be required that could negatively impact the Group’s gross margin and operating results. If actual market conditions are more favorable, the Group may have higher gross margin when products that have been previously reserved or written down are eventually sold. The sale of previously reserved inventory did not have a material impact on our gross margin percentage for any of the years presented. In addition, the Group analyzes its firm purchase commitments, if any, at each period end. Provision is made in the current period if the net realizable value after considering estimated costs to convert polysilicon into saleable finished goods is higher than market selling price of finished goods as of the end of a reporting period. There was no provision recorded related to these long-term contracts for each of the three years ended December 31, 2020, 2021 and 2022. l. Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation. Cost includes the prices paid to acquire or construct the assets, interest capitalized during the construction period and any expenditure that substantially extends the useful life of an existing asset. Depreciation is computed using the straight-line method over the following estimated useful lives (RMB in thousands): Buildings 20 years Machinery and equipment 5~10 years Furniture, fixture and office equipment 3~5 years Motor vehicles 4~5 years Construction in progress primarily represents the construction of new production line and buildings. Costs incurred in the construction are capitalized and transferred to property, plant and equipment upon completion, at which time depreciation commences. Expenditures for repairs and maintenance are expensed as incurred. The gain or loss on disposal of property, plant and equipment, if any, is the difference between the net sales proceeds and the carrying amount of the disposed assets, and is recognized in the consolidated statement of operations upon disposal. m. Project Assets, net Project assets represented the costs of solar power plants held for generation of electricity revenue, held with the intention to sell to third parties and solar power plants under construction. Project assets are stated in the consolidated balance sheets at cost less accumulated depreciation and impairment provision, if any. Costs of project assets consist primarily of costs relating to construction of solar power plants at various stages of development. These costs include costs for procurement of solar module and other equipment (including intercompany purchases), cost of land on which solar power plants are developed and other direct costs for developing and constructing solar power plants, such as costs for obtaining permits required for solar power plants and costs for designing, engineering, interest costs capitalized and installation in the course of construction. Such costs are capitalized starting from the point when it is determined that development of the solar power plant is probable. For a solar power project asset acquired from third parties, the initial cost is the acquisition cost which includes the consideration transferred and certain direct acquisition costs. During the year of 2020, the Group recorded full impairments of RMB94 million against its remaining solar power project in Mexico based on the Company’s estimation that it is unable to complete the grid connection before the due date of the purchase agreement with Federal Electricity Commission of Mexico. During the year of 2021, the Group recorded impairments of RMB123 million against its solar power project in Argentina which was measured based on the excess of the carrying amount over the fair value of the solar power project according to the quoted market price. Costs capitalized in the construction of solar power plants under development will be transferred to completed solar power plants upon completion and when they are ready for intended use, which is at the point of time when the solar power plant is connected to grids and begins to generate electricity. Depreciation of the completed solar power plant held for generation of electricity revenue commences once the solar power plant is ready for intended use. Depreciation is computed using the straight-line method over the expected life of 20 years. Depreciation expenses of solar power plants were RMB53 million, RMB33 million and nil for the years ended December 31, 2020, 2021 and 2022. The Company does not depreciate project assets when such project assets are constructed for sale upon completion. Any revenue generated from such project assets connected to the grid would be considered incidental revenue and accounted for as a reduction of the capitalized project costs for development. During the years of 2020, 2021 and 2022, electricity revenue generated from certain overseas project assets constructed for sale upon completion, with the amount of RMB8 million, nil and RMB47 million was considered as incidental revenue and accounted for as a reduction of the capitalized project costs for development. n. Assets held for sale Long-lived assets to be sold are classified as held for sale when the following recognition criteria in ASC 360-10-45-9 are met: ¨ Management, having the authority to approve the action, commits to a plan to sell the asset. ¨ The asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets. ¨ An active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated. ¨ The sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one year, ¨ The asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value. ¨ Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Group entered into an agreement to sell its solar power plant located in Argentina to JinkoPower in December 2021. Assets and liabilities related to the solar power plant were reclassified from project assets to assets/liabilities held for sale as of December 31, 2021. The Group sold its solar power plants in Argentina in June 2022. The Group entered into a share purchase agreement to dispose all of its equity interest in Jiangsu Jinko-Tiansheng Co., Ltd. (“Jinko-Tiansheng”) to the Jinko-Tiansheng’s other shareholders in November 2021. The Group’s investment in Jinko-Tiansheng was reclassified from investments in affiliates to held for sale assets as of December 31, 2021. o. Interest Capitalization Interest expenses during the years ended December 31, 2020, 2021 and 2022 were RMB705 million, RMB879 million and RMB1,150 million, net of interest income of RMB217 million, RMB214 million and RMB589 million respectively. The interest cost associated with major development and construction projects is capitalized and included in the cost of the property, plant and equipment or project assets. Interest capitalization ceases once a project is substantially completed or no longer undergoing construction activities to prepare it for its intended use. When no debt is specifically identified as being incurred in connection with a construction project, the Group capitalizes interest on amounts expended on the project at the Group’s weighted average cost of borrowings. Interest expense capitalized associated with the construction projects for the years ended December 31, 2020, 2021 and 2022 were RMB29 million, RMB41 million and RMB71 million, respectively. p. Land use rights and land lease (a) Land use rights Land use rights represent acquisition costs to purchase land use rights from the PRC government, which are evidenced by property certificates. The periods of these purchased land use rights are either 50 years or 70 years. The Company classifies land use rights as long term assets on the balance sheet and cash outflows related to acquisition of land use right as investing activities. Land use rights are carried at cost less accumulated amortization and impairment losses, if any. Amortization is computed using the straight-line method over the term specified in the land use right certificate for 50 years or 70 years, as applicable. (b) Land lease For certain of the Group’s solar power project, the Group enters into land lease contracts with the owners of the land use rights. Under such lease arrangements, the owners retain the property right of the land use rights. While the Group can only set up the solar panels on these leased lands but does not have the right to sell, lease or dispose the land use rights. Accordingly, land leases are classified as operating leases. q. Intangible assets Intangible assets include purchased software and fees paid to register trademarks and are amortized on a straight-line basis over their estimated useful lives, which are 5 or 10 years, respectively. r. Business combination and assets acquisition U.S. GAAP requires that all business combinations not involving entities or businesses under common control be accounted for under the purchase method. The Group has adopted ASC 805 “Business Combinations,” and the cost of an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred and equity instruments issued. The transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of the (i) the total of cost of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net tangible and intangible assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of operations and comprehensive income. The determination and allocation of fair values to the identifiable assets acquired and liabilities assumed is based on various assumptions and valuation methodologies requiring considerable management judgment. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the future cash inflows and outflows. Management determines discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. Terminal values are based on the expected life of products and forecasted life cycle and forecasted cash flows over that period. Although management believes that the assumptions applied in the determination are reasonable based on information available at the date of acquisition, actual results may differ from the forecasted amounts and the difference could be material. A non-controlling interest is recognized to reflect the portion of a subsidiary’s equity which is not attributable, directly or indirectly, to the Company. Consolidated net income on the consolidated statements of operations and comprehensive income includes the net income (loss) attributable to non-controlling interests when applicable. The cumulative results of operations attributable to non-controlling interests are also recorded as non-controlling interests in the Company’s consolidated balance sheets. Cash flows related to transactions with non-controlling interests are presented under financing activities in the consolidated statements of cash flows when applicable. s. Investments On January 1, 2018, the Company adopted ASU No. 2016-01, which requires equity investments to be measured at fair value with subsequent changes recognized in net income, except for those accounted for under the equity method or requiring consolidation. This standard also changed the accounting for investments without a readily determinable fair value and that do not qualify for the practical expedient to be measured at fair value. A policy election can be made for these investments whereby investment will be carried at cost and adjusted in subsequent periods for any impairment or changes in observable prices of identical or similar investments. With the adoption of ASU No. 2016-01 and the Update, for investments in equity securities lacking of readily determinable fair values and the ability to exercise significant influence, the Company elected to use the measurement alternative defined as cost, less impairments, adjusted by observable price changes. Adoption of these standards had no significant impact on the Group’s consolidated financial statements for the years ended 2020, 2021 and 2022. The Group’s investments include equity method investments, equity securities without readily determinable fair values, equity securities applying fair value option and available-for-sale debt securities. The Group holds equity investments in affiliates in which it does not have a controlling financial interest, but has the ability to exercise significant influence over the operating and financial policies of the investee. These investments are accounted for under equity method of accounting wherein the Group records its proportionate share of the investees’ income or loss in its consolidated financial statements. Equity securities without readily determinable fair values are measured and recorded using a measurement alternative that measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes. Fair value option election is made on an instrument-by-instrument basis and equity securities applying fair value option is reported at fair value with changes in fair value recognized in earnings. Equity investments are evaluated for impairment when facts or circumstances indicate that the fair value of the investment is less than its carrying value. The Group reviews several factors to determine whether an impairment is recognized. These factors include, but are not limited to, the: (1) nature of the investment; (2) cause and duration of the impairment; (3) extent to which fair value is less than cost; (4) financial conditions and near term prospects of the issuers; and (5) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. Debt securities that the Company has positive intent and ability to hold to maturity are classified as held to maturity debt securities and are stated at amortized cost. The Company classified its investments in debt securities, other than the held to maturity debt securities, as available-for-sale securities. Available-for-sale debt securities are reported at estimated fair value with the aggregate unrealized gains and losses, net of tax, reflected in “Accumulated other comprehensive loss” in the consolidated balance sheets. If the amortized cost basis of an available-for-sale security exceeds its fair value and if the Company has the intention to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of the amortized cost basis, an impairment is recognized in the consolidated statements of operations. If the Company does not have the intention to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of the amortized cost basis and the Company determines that the decline in fair value below the amortized cost basis of an available-for-sale security is entirely or partially due to credit-related factors, the credit loss is measured and recognized as an allowance for credit losses in the consolidated statements of operations. The allowance is measured as the amount by which the debt security’s amortized cost basis exceeds the Company’s best estimate of the present value of cash flows expected to be collected. t. Impairment of long-lived assets The Group’s long-lived assets include property, plant and equipment, project assets, land use rights and intangible assets with finite lives. The Group’s business requires heavy investment in manufacturing equipment that is technologically advanced, but can quickly become significantly under-utilized or rendered obsolete by rapid changes in demand for solar power products produced with those equipment. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that carrying amount of an asset may not be recoverable. Factors considered important that could result in an impairment review include significant underperformance relative to expected historical or projected future operating results, significant changes in the manner of use of acquired assets and significant negative indus |
REVENUES
REVENUES | 12 Months Ended |
Dec. 31, 2022 | |
REVENUES. | |
REVENUES | 3. REVENUES The Group’s revenues for the respective periods are detailed as follows (RMB in thousands): For the years ended December 31, 2020 2021 2022 RMB RMB RMB Sales of solar modules 32,556,394 37,737,383 80,224,354 Sales of solar projects 1,197,713 — 31,400 Sales of silicon wafers 452,141 1,152,055 466,553 Sales of solar cells 344,510 606,582 1,024,114 Sales of other solar materials 478,184 1,043,760 1,380,875 Processing service fees — 186,045 — Revenue from generated electricity 100,517 100,696 — Total 35,129,459 40,826,521 83,127,296 In March 2020, the Company sold two solar power plants in Mexico, that were constructed with an intent to sell, with a combined capacity of 155 MW to an independent third party, and recognized sales of solar projects with the amount of RMB1,198 million. In December 2022, the Company received contingent receivables payments in cash related to the sales of these two solar projects and recognized revenue of RMB31 million. During the years of 2020, 2021 and 2022, electricity revenue generated from certain overseas project assets constructed for sale upon completion, with the amount of RMB8 million, nil and RMB47 million was considered as incidental revenue and accounted for as a reduction of the capitalized project costs for development. The following table summarizes the Group’s net revenues generated in respective region (RMB in thousands): For the years ended December 31, 2020 2021 2022 RMB RMB RMB Inside China (including Hong Kong and Taiwan) 6,370,975 10,134,888 34,839,410 North America 10,098,116 6,621,799 3,727,493 Europe 4,644,487 7,481,581 19,637,777 Asia Pacific 9,603,211 10,239,162 11,274,447 Rest of the world 4,412,670 6,349,091 13,648,169 Total 35,129,459 40,826,521 83,127,296 |
INTEREST EXPENSES, NET
INTEREST EXPENSES, NET | 12 Months Ended |
Dec. 31, 2022 | |
INTEREST EXPENSES, NET | |
INTEREST EXPENSES, NET | 4. INTEREST EXPENSES, NET Components of interest expenses, net are detailed as follows (RMB in thousands): For the years ended December 31, 2020 2021 2022 RMB RMB RMB Interest expenses 705,159 878,908 1,150,128 Less: Interest capitalization (29,307) (40,588) (70,719) Less: Interest income (216,618) (214,291) (588,706) Total 459,234 624,029 490,703 |
OTHER INCOME, NET
OTHER INCOME, NET | 12 Months Ended |
Dec. 31, 2022 | |
OTHER INCOME, NET | |
OTHER INCOME, NET | 5. OTHER INCOME, NET Components of other income, net are detailed as follows (RMB in thousands): For the years ended December 31, 2020 2021 2022 RMB RMB RMB Guarantee income 14,687 6,365 — Donations (12,395) (4,454) (6,824) Disposal of Tiansheng — — 12,474 Disposal of solar power project in Argentina — — 1,758 Others — — (5,837) Total 2,292 1,911 1,571 (a) Since 2016, the Group issued debt payment guarantees and redemption guarantees in favor of JinkoPower, a related party (Note 26). The guarantee liability which corresponds with the guarantee fees received is being amortized in straight line during the guarantee period from 1 to 16 years based on the life of the outstanding guaranteed bank loans by recognizing a credit to other income. In 2022, the Group and JinkoPower entered into an agreement to cancel the debt payment guarantees and redemption guarantees in favor of JinkoPower. Hence, no guarantte income was recognized for the year ended December 31, 2022. (b) The Group entered into a share purchase agreement to dispose all of its equity interests in Jinko-Tiansheng to Jinko-Tiansheng’s other shareholders in November 2021. The disposition was consummated in 2022 with a gain of RMB 12 million recognized. (c) In December 2021, the Group entered into an agreement to sell the solar power plant in Argentina to JinkoPower, a related party. Disposition of the solar power plant was consummated in June 2022 with a gain of RMB 2 million recognized. |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2022 | |
TAXATION | |
TAXATION | 6. TAXATION The Company and its subsidiaries file separate income tax returns. Cayman Islands Under the current laws of the Cayman Islands, the Company and its subsidiaries in Cayman Islands are not subject to tax on its income or capital gains. In addition, upon any payment of dividends by the Company, no Cayman Islands withholding tax is imposed. 10% withholding income tax is levied on the guarantee payment from JinkoPower (Note 26). British Virgin Islands Under the current laws of the British Virgin Islands(“BVI”), the Company’s subsidiary in BVI is not subject to tax on its income or capital gains. In addition, upon any payment of dividends by the Company, no British Virgin Islands withholding tax is imposed. People’s Republic of China On March 16, 2007, the National People’s Congress approved the Corporate Income Tax Law of the People’s Republic of China (the “CIT Law”) with effective on January 1, 2008. The CIT Law enacted a statutory income tax rate of 25%. Jiangxi Jinko, Zhejiang Jinko, Haining Jinko, Jinko Yiwu, Shangrao Jinko and Zhejiang New Materials were designated by the relevant local authorities as “High and New Technology Enterprises” under the CIT Law. Zhejiang Jinko has successfully renewed this qualification for 2021, 2022 and 2023. Jiangxi Jinko and Haining Jinko have successfully renewed this qualification for 2022, 2023 and 2024. Jinko Yiwu was designated by the relevant local authorities as a “High and New Technology Enterprise” in 2021, and will enjoy the preferential tax rate of 15% in 2022 and 2023. Shangrao Jinko and Zhejiang New Materials were designated by the relevant local authorities as a “High and New Technology Enterprise” in 2022, and will enjoy the preferential tax rate of 15% in 2023 and 2024. Xinjiang Jinko was designated by the relevant local authorities as an “Enterprise in the Encouraged Industry” and was subject to a preferential tax rate of 15% till 2030. It was also designated by the relevant local authorities as a “High and New Technology Enterprise” in 2020, and was subject to the preferential tax rate of 15% in 2021 and 2022. Jinko Leshan, Jinko Sichuan, Jinko Qinghai and Jinko Chuxiong was designated by the relevant local authorities as an “Enterprise in the Encouraged Industry” and was subject to a preferential tax rate of 15% till 2030. Under the CIT Law, 10% withholding income tax (“WHT”) will be levied on foreign investors for dividend distributions from foreign invested enterprises’ profit earned after January 1, 2008. For certain treaty jurisdictions such as Hong Kong which has signed double tax arrangement with the PRC, the applicable WHT rate could be reduced to 5% if foreign investors directly hold at least 25% shares of invested enterprises at any time throughout the 12-month period preceding the entitlement to the dividends and they are also qualified as beneficial owners to enjoy the treaty benefit. Deferred income taxes are not provided on undistributed earnings of the Company’s subsidiaries that are intended to be permanently reinvested in China. Since Jiangxi Jinko’s initial pubic offering in 2022 (Note 24), the Group provided withholding income tax for the earnings of Jiangxi Jinko, which are expected to be distributed in the future based on its distribution plan. As of December 31, 2022, the Group recognised deferred tax liabilities of RMB52 million, related to the cumulative undistributed earnings of Jiangxi Jinko. The cumulative undistributed earnings of the Company’s PRC subsidiaries intended to be permanently reinvested totaled RMB3,879 million, RMB4,928 million and RMB6,635 million as of December 31, 2020, 2021 and 2022 respectively, and the amount of the unrecognized deferred tax liability, calculated based on the 10% rate, on the indefinitely reinvested earnings was RMB388 million, RMB493 million and RMB663 million as of December 31, 2020, 2021, 2022 respectively. Hong Kong The Company’s subsidiaries established in Hong Kong are subject to Hong Kong profit tax at a rate of 16.5% on its assessable profit. Japan Jinko Japan is incorporated in Japan and is subject to corporate income tax at 37.6%. Korea Jinko Korea is incorporated in Korea and is subject to corporate income tax at 22% in 2021 and 10% in 2022. European Countries Jinko Switzerland is incorporated in Switzerland and according to its current business model where it employs limited staff and generates income exclusively from trading activities conducted outside Switzerland, is subject to a combined federal, cantonal and communal tax rate of 11.6% in 2020, 9.57% in 2021 and 10% in 2022. Jinko GMBH is incorporated in Germany and is subject to Germany profit tax rate of approximately 33% on the assessable profit. Jinko Italy is incorporated in Italy and is subject to corporate income tax at 27.9%. Jinko Portugal is incorporated in Portugal and is subject to corporate income tax at 22.5%. Jinko Denmark is incorporated in Denmark and is subject to corporate income tax at 22%. United States Jinko US, Jinko US holding, and Jinko Solar (U.S.) Industries are Delaware incorporated corporations that are subject to U.S. federal corporate income tax on taxable incomes at a rate of 21% for taxable years beginning after December 31, 2017 and at differing tax rates of various states ranged from 0.75% to 9.99%. Malaysia The Income Tax Act 1967 of Malaysia, revised in 1971, enacted a statutory income tax rate of 24%. Nevertheless, Malaysia offers a wide range of tax incentives, including tax exemptions, capital allowances, and enhanced tax deductions, to attract foreign direct investment. Incorporated in Malaysia, Jinko Malaysia is entitled to a five year 100% tax exemption, approved in February 2017 and retrospectively effective from August 2015, under the pioneer status (PS) incentive scheme as a company engaged in producing high technology products identified by the Malaysian Investment Development Authority (MIDA). The tax exemption was expired in August 2020 and Jinko Malaysia is subject to corporate income tax at 24% from August 2020. Canada Jinko Canada is incorporated in Canada and is subject to a federal corporate income tax of 15% and provinces and territories income tax of 12%. Australia Jinko Australia is incorporated in Australia and is subject to corporate income tax at 30%. Brazil Jinko Brazil is incorporated in Brazil and is subject to corporate income tax at 34%. Mexico Jinko Mexico is incorporated in Mexico and is subject to corporate income tax at 30%. Argentina Cordillera Solar I, S.A., the wholly owned solar power project subsidiary, is incorporated in Argentina and is subject to corporate income tax at 35%. Composition of Income Tax Expense Income/(loss) before income taxes for the years ended December 31, 2020, 2021 and 2022 were taxed within the following jurisdictions (RMB in thousands): For the year ended December 31, 2020 2021 2022 RMB RMB RMB Cayman Islands (784,811) 199,956 (639,136) PRC 444,368 1,120,667 2,743,467 Other countries 906,815 (230,720) (127,622) Income before income taxes 566,372 1,089,903 1,976,709 For the year ended December 31, 2022, loss before income taxes of Cayman Islands subsidiaries was mainly due to the charge of share-based compensation expenses. Increase in the income before taxes of PRC subsidiaries was mainly attributable to the higher profits generated by the Group’s subsidiaries in the PRC. The current and deferred positions of income tax expense included in the consolidated statement of operations for the years ended December 31, 2020, 2021 and 2022 are as follows (RMB in thousands): For the year ended December 31, 2020 2021 2022 RMB RMB RMB Current income tax (expenses)/benefits PRC 26,473 (280,877) (867,937) Other countries (110,726) (175,633) (58,014) Total current income tax expenses (84,253) (456,510) (925,951) Deferred tax (expenses)/benefits PRC (7,436) 77,741 457,266 Other countries (86,722) 184,629 (136,593) Total deferred tax (expenses)/benefits (94,158) 262,370 320,673 Income tax expenses, net (178,411) (194,140) (605,278) Reconciliation of the differences between statutory tax rate and the effective tax rate Reconciliation between the statutory CIT rate of 25% and the Company’s effective tax rate from continuing operations is as follows: For the year ended December 31, 2020 2021 2022 % % % Statutory CIT rate 25.0 25.0 25.0 Effect of permanent differences: —Share-based compensation expenses 0.1 0.1 3.2 —Change in fair value of convertible senior notes and call options 32.0 (4.4) 0.2 —Accrued payroll and welfare expenses 0.4 0.1 0.1 —Change of enacted tax rate (7.2) 2.1 1.6 —Other non-deductible expenses including tax preferences (6.6) (1.8) 3.4 Difference in tax rate of subsidiaries outside the PRC (3.1) 2.2 3.9 Effect of tax holiday for subsidiaries (7.8) (12.9) (12.1) Change in valuation allowance (1.3) 7.4 5.3 Effective tax rate 31.5 17.8 30.6 Other tax preferences in 2020, 2021 and 2022 was mainly due to the additional income tax deduction amounting of RMB83 million, RMB74 million and RMB107 million for R&D costs approved by local tax bureau in the second quarter of 2020, 2021 and 2022, respectively. The aggregate amount and per share effect of reduction of CIT for certain PRC subsidiaries as a result of tax holidays are as follows (RMB in thousands, except for per share data): For the year ended December 31, 2020 2021 2022 RMB RMB RMB The aggregate amount of effect* 44,191 140,235 239,268 Per share effect—basic 0.25 0.74 1.21 Per share effect—diluted ** 0.25 0.68 1.19 * Increase of the aggregated amount of effect in 2022 was mainly attributable to more profit generated by the Group’s PRC subsidiaries with preferential tax rates. **Due to the dilutive impact of call option in 2020, the denominator for diluted earnings per share is less than that for the basic earnings per share (Note 20). Therefore, the Company used the basic denominator for both of the basic and diluted effect to calculate above per share effect of tax holidays in 2020. Significant components of deferred tax assets/liability (RMB in thousands) As of December 31, 2021 2022 RMB RMB Net operating losses 473,367 529,522 Accrued warranty costs 216,938 373,064 Provision for inventories, accounts receivable, other receivable 101,595 230,019 Timing difference for subsidiary income 15,235 166,857 Other temporary differences 24,953 69,183 Impairment for property, plant and equipment and project assets 100,860 35,491 Total deferred tax assets 932,948 1,404,136 Less: Valuation allowance (217,124) (243,141) Less: Deferred tax liabilities in the same tax jurisdiction (344,057) (456,751) Deferred tax assets 371,767 704,244 Timing difference for project assets, property, plant and equipment (375,499) (478,515) Timing difference for refund of countervailing duties (144,923) (90,864) Deferred tax liabilities related to cumulative distributable earnings in Jiangxi Jinko — (52,173) Other temporary differences (6,638) (30,007) Total deferred tax liabilities (527,060) (651,559) Less: Deferred tax assets in the same tax jurisdiction 344,057 456,751 Deferred tax liabilities (183,003) (194,808) Movement of valuation allowance (RMB in thousands) For the year ended December 31, 2020 2021 2022 RMB RMB RMB At beginning of year (144,317) (136,847) (217,124) Current year additions (37,426) (88,667) (216,260) Utilization and reversal of valuation allowances 44,896 8,390 111,296 Decrease of valuation allowances related to the disposal of a subsidiary — — 78,947 At end of year (136,847) (217,124) (243,141) Valuation allowances were determined by assessing both positive and negative evidence and have been provided on the net deferred tax asset due to the uncertainty surrounding its realization. As of December 31, 2020, 2021 and 2022, valuation allowances of RMB137 million, RMB217 million and RMB243 million were provided against deferred tax assets because it was more likely than not that such portion of deferred tax will not be realized based on the Group’s estimate of future taxable incomes of all its subsidiaries. If events occur in the future that allow the Group to realize more of its deferred tax assets than the presently recorded amount, an adjustment to the valuation allowances will result in a non-cash income statement benefit when those events occur. Due to the strong financial performance and profitable condition of certain subsidiaries, the Company has determined that the future taxable income of those subsidiaries is sufficient to realize the benefits of such deferred tax assets. As a result, the Company reversed the valuation allowance of RMB45 million, RMB8 million and RMB111 million in 2020, 2021 and 2022. |
ACCOUNTS RECEIVABLE, NET-THIRD
ACCOUNTS RECEIVABLE, NET-THIRD PARTIES | 12 Months Ended |
Dec. 31, 2022 | |
ACCOUNTS RECEIVABLE, NET-THIRD PARTIES | |
ACCOUNTS RECEIVABLE, NET-THIRD PARTIES | 7. ACCOUNTS RECEIVABLE, NET — THIRD PARTIES Components of accounts receivables, net-third parties are detailed as follows (RMB in thousands): As of December 31, 2021 2022 RMB RMB Accounts receivables - current 7,794,174 17,259,003 Allowance for credit losses - current (323,071) (584,127) Accounts receivable, net - current 7,471,103 16,674,876 Accounts receivables – non-current 28,186 — Allowance for credit losses – non-current (562) — Accounts receivable, net – non-current 27,624 — As of December 31, 2021 and 2022, accounts receivable with net book value of RMB726 million and RMB1,006 million were pledged as collateral for the Group’s borrowings (Note 18). The following table summarizes the activity in the allowance for credit losses related to accounts receivable – current for the year ended December 31, 2020, 2021 and 2022: As of December 31, 2020 2021 2022 RMB RMB RMB At beginning of year 318,198 293,360 323,071 Impact of adopting ASC Topic 326 (30,916) — — Addition 26,581 91,948 394,285 Reversal (20,503) (24,213) (114,770) Write off — (38,024) (18,459) At end of year 293,360 323,071 584,127 The following table summarizes the activity in the allowance for credit losses related to accounts receivable – non-current for the year ended December 31, 2020, 2021 and 2022: As of December 31, 2020 2021 2022 RMB RMB RMB At beginning of year — 1,139 562 Impact of adopting ASC Topic 326 — — — Addition 1,139 — — Reversal — (577) (562) At end of year 1,139 562 — |
NOTES RECEIVABLE, NET-THIRD PAR
NOTES RECEIVABLE, NET-THIRD PARTIES | 12 Months Ended |
Dec. 31, 2022 | |
NOTES RECEIVABLE, NET-THIRD PARTIES | |
NOTES RECEIVABLE, NET-THIRD PARTIES | 8. NOTES RECEIVABLE, NET – THIRD PARTIES Components of notes receivables, net-third parties are detailed as follows (RMB in thousands): As of December 31, 2021 2022 RMB RMB Notes receivable 1,690,142 6,697,096 Provision for notes receivable (1,040) — Notes receivable, net 1,689,102 6,697,096 As of December 31, 2021 and 2022, notes receivable with net book value of RMB885 million and RMB1,481 million were pledged as collateral for the issuance of bank acceptance notes. The following table summarizes the activity in the allowance for credit losses related to notes receivable for the year ended December 31, 2020, 2021 and 2022 (RMB in thousands): As of December 31, 2020 2021 2022 RMB RMB RMB At beginning of year — 182 1,040 Impact of adopting ASC Topic 326 223 — — Addition — 858 — Reversal (41) — (1,040) At end of year 182 1,040 — |
ADVANCES TO SUPPLIERS, NET - TH
ADVANCES TO SUPPLIERS, NET - THIRD PARTIES | 12 Months Ended |
Dec. 31, 2022 | |
ADVANCES TO SUPPLIERS, NET - THIRD PARTIES | |
ADVANCES TO SUPPLIERS, NET - THIRD PARTIES | 9. Advance to suppliers, net – third parties were as follows (RMB in thousands): As of December 31, 2021 2022 RMB RMB Advances to suppliers - current 1,536,155 3,271,284 Advances to suppliers – non-current 296,709 310,375 Advances to suppliers, net 1,832,864 3,581,659 As of December 31, 2021 and 2022, advances to suppliers with term of less than 1 year mainly represent payments for procurement of recoverable silicon materials, virgin polysilicon and solar cells and the Group has delivery plan with the respective suppliers to receive the materials in the next twelve months. As of December 31, 2021 and 2022, non-current advances to suppliers primarily represent upfront payments for procurement of silicon materials of which related good delivery is scheduled beyond one year. There were no provisions recorded against advances to suppliers for the years ended December 31, 2020, 2021 and 2022. The Group wrote off fully impaired balances of advances to suppliers with the amount of RMB2 million, RMB6 million and nil for the years ended December 31, 2020, 2021 and 2022, respectively. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2022 | |
INVENTORIES. | |
INVENTORIES | 10. INVENTORIES The Company’s inventories are consisted of the follows (RMB in thousands): As of December 31, 2021 2022 RMB RMB Raw materials 3,761,045 5,499,573 Work-in-progress 2,623,044 3,237,480 Finished goods 6,868,263 8,713,231 Total 13,252,352 17,450,284 Write-down of the carrying amount of inventory to its estimated net realizable value was RMB271 million, RMB823 million and RMB1,819 million for the years ended December 31, 2020, 2021 and 2022, respectively, and were recorded as cost of revenues in the consolidated statements of operations. Inventory write downs were mainly related to the inventories whose market value is lower than their carrying amount. As of December 31, 2021 and 2022, inventories with net book value of RMB1,749 million and RMB2,809 million were pledged as collateral for the Group’s borrowings (Note 18). |
PREPAYMENTS AND OTHER CURRENT A
PREPAYMENTS AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
PREPAYMENTS AND OTHER CURRENT ASSETS | |
PREPAYMENTS AND OTHER CURRENT ASSETS | 11. PREPAYMENTS AND OTHER CURRENT ASSETS Prepayments and other current assets are consisted of the follows (RMB in thousands): As of December 31, 2021 2022 RMB RMB Value-added tax deductible (a) 1,705,159 1,374,909 Deposit for customer duty, bidding and others 142,442 181,371 Prepayment for income tax and deferred charges 129,931 233,744 Receivables related to disposal of land use rights and property, plant and equipment (b) 111,804 378,900 Receivables related to discount from a supplier 110,050 324,002 Prepayment of electricity and others 91,334 153,021 Prepaid insurance premium 6,675 7,281 Employee advances (c) 6,274 3,944 Refund receivable of U.S. countervailing duties and anti-dumping duties (Note 16) — 480,535 Rental deposit and prepayment 3,606 1,643 Receivable of option exercised 1,169 — Prepaid professional service fee 307 — Loan receivable (d) — 23,459 Others 131,827 136,212 Less: Allowance for credit losses (5,521) (8,118) Total 2,435,057 3,290,903 (a) Value-added tax deductible represented the balance that the Group can utilize to deduct its value-added tax liability within the next 12 months . (b) Represented the receivables related to disposition of certain equipment for the purpose of upgrading manufacturing facilities and receivables related to disposition of certain land use rights. (c) As of December 31, 2021 and 2022, all of the employee advances were business related, interest-free, not collateralized and will be repaid or settled within one year from the respective balance sheet dates. (d) Represented an interest-free half-year loan of RMB 23 million provided by Qinghai Jinko in 2022 to a third-party company. The following table summarizes the activity in the allowance for credit losses related to prepayments and other current assets for the year ended December 31, 2022 (RMB in thousands): For year ended December 31, 2022 RMB At beginning of year 5,521 Impact of adopting ASC Topic 326 — Addition 2,597 Reverse — At end of year 8,118 |
INVESTMENTS AND AVAILABLE-FOR-S
INVESTMENTS AND AVAILABLE-FOR-SALE SECURITIES | 12 Months Ended |
Dec. 31, 2022 | |
INVESTMENTS AND AVAILABLE-FOR-SALE SECURITIES | |
INVESTMENTS AND AVAILABLE-FOR-SALE SECURITIES | 12. INVESTMENTS AND AVAILABLE-FOR-SALE SECURITIES The Group’s investments are consisted of the follows (RMB in thousands): As of December 31, 2021 2022 RMB RMB -Debt investment Available-for-sale securities — 104,499 -Equity investment Investments accounted for under the equity method 538,866 1,287,201 Equity securities without readily determinable fair values 95,000 245,000 Equity securities applying fair value option — 178,871 Subtotal 633,866 1,711,072 Total 633,866 1,815,571 - Available-for-sale securities In May 2022, the Group purchased a two - Investments accounted for under the equity method. On February 26, 2017, JinkoSolar signed a shareholder agreement with AxiaPower Holdings B.V. (“Axia”), a subsidiary of Marubeni Corporation, to jointly invest in and establish a company named SweihanSolar Holding Company Limited (“SSHC”) to hold 40% equity interest of Sweihan PV Power Company P.J.S.C (“the Project Company”), which develops and operates solar power projects in Dubai. In April 2019, JinkoSolar made pro rata additional capital injection to SSHC with the amount of RMB295 million. JinkoSolar holds 50% equity interest in the SSHC and accounts for its investment using the equity method. JinkoSolar’s share of SSHC’s results of operations is included in equity (loss)/income in affiliated companies in the Group’s consolidated statements of operations, with a loss of RMB10 million, an income of RMB62 million and an income of RMB14 million for the years ended December 31, 2020, 2021 and 2022, respectively. JinkoSolar sold modules of 32.2 MW, nil and nil and recognized revenue of RMB51 million, nil and nil on sales to the Project Company (Note 26) during the years ended December 31, 2020, 2021 and 2022, respectively. Loss amounted to RMB0.2 million, RMB1 million and RMB1 million in connection with the intercompany transactions with the Project Company was eliminated during the years ended December 31, 2020, 2021 and 2022, respectively. The Group received dividend in cash from SSHC with the amount of RMB 16 million, RMB 23 million and nil during the year of 2020, 2021 and 2022, respectively, which were recorded as reductions of the carrying amount of the investment. In January 2022, JinkoSolar made pro rata decrease of its investment in SSHC with the amount of RMB94 million, which was recorded as a reduction of the carrying amount of the investment. The carrying value of this investment was RMB 224 million and RMB 144 million as of December 31, 2021 and 2022. On March 30, 2017, JinkoSolar signed a shareholder agreement with Yangzhou Tiansheng PV-Tech Co., Ltd., a Chinese PV enterprise, to jointly invest in and establish Jinko-Tiansheng to process and assemble PV modules as OEM manufacturer in Jiangsu province, China. JinkoSolar holds 30% equity interest in Jinko-Tiansheng and accounts for its investment using the equity method. In November 2021, the Group entered into a share purchase agreement to dispose all of its equity interest in Jinko-Tiansheng to Jinko-Tiansheng’s other shareholders. The carrying value of the Group’s investment in Jinko-Tiansheng which met recognition criteria in ASC 360-10-45-9 was reclassified as a held for sale asset as of December 31, 2021. Disposition of equity interest in Jinko-Tiansheng was closed in January 2022 and the Group recognized a gain from disposal of the equity interest with the amount of RMB13 million (Note 5). For the years ended December 31, 2020, 2021 and 2022, JinkoSolar’s share of Jinko-Tiansheng’s results of operations included in equity (loss)/income in affiliated companies in the Group’s consolidated statements of operations were a loss of RMB2 million, RMB7 million and nil, respectively. Jinko-Tiansheng charged processing fee amounted to RMB27 million, RMB5 million and nil to the Company for its OEM services provided (Note 26) during the years ended December 31, 2020, 2021 and 2022, respectively. Profit/(loss) amounted to RMB3 million, RMB(4) million and nil due to the intercompany transactions with Jinko-Tiansheng was eliminated for the years ended December 31, 2020, 2021 and 2022, respectively. The carrying value of this investment was RMB9 million and RMB3 million as of December 31, 2020 and 2021, respectively. On June 18, 2021, JinkoSolar signed a shareholder agreement with Xinte Energy Co., Ltd. and JA Solar Co., Ltd to jointly invest in and establish a company named Xinte Silicon Co., Ltd. (“Xinte Silicon”) to produce polysilicon materials. JinkoSolar made capital injection in cash with the total amount of RMB315 million during the year of 2021. JinkoSolar holds 9% equity interest in Xinte Silicon. JinkoSolar can exercise significant influence on Xinte Silicon and accounts for its investment using the equity method. JinkoSolar’s share of Xinte Silicon’s results of operations is included in equity (loss)/income in affiliated companies in the Group’s consolidated statements of operations, with a loss of RMB0.003 million and an income of RMB219 million for the year ended December 31, 2021 and 2022, respectively. JinkoSolar purchased polysilicon of nil and RMB825 million from Xinte Silicon during the years ended December 31, 2021 and 2022, respectively. Profit amounted to nil and RMB37 million in connection with these transactions with Xinte Silicon was eliminated for the years ended December 31, 2021 and 2022, respectively. The carrying value of this investment was RMB315 million and RMB534 million as of December 31, 2021 and 2022. On November 3, 2021, JinkoSolar signed a shareholder agreement with Beijing Jingyuntong Technology Co., Ltd. and Sichuan Yongxiang Co., Ltd to jointly invest in and establish a company named Sichuan Yongxiang Technology Co., Ltd. (“Sichuan Yongxiang”) to produce polysilicon materials. JinkoSolar made capital injection in cash with the total amount RMB 450 million in 2022 and holds 15% equity interest in Sichuan Yongxiang. JinkoSolar can exercise significant influence on Sichuan Yongxiang and accounts for its investment using the equity method. JinkoSolar’s share of Sichuan Yongxiang’s results of operations is included in equity (loss)/income in affiliated companies in the Group’s consolidated statements of operations, with a loss of RMB1 million for the year ended December 31, 2022. The carrying value of this investment was RMB449 million as of December 31, 2022. In July 2022, JinkoSolar established a fully owned subsidiary named as Shangrao Jinko Green Energy Technology Development Co., Ltd. (“Shangrao Lvneng”). JinkoSolar made capital injection in cash with the total amount of RMB50 million in July 2022. In November 2022, two third-party investors made capital injections into Shangrao Lvneng in cash with the total amount of RMB330 million (each paid RMB165 million) and JinkoSolar made additional capital injections in cash with the amount of RMB115 million.After these capital injections, JinkoSolar owns 33.33% equity interests and loses control of Shangrao Lvneng. A gain from disposal of Shangrao Lvneng subsidiary of RMB2 million was recognized because of the disposition. After the disposition, JinkoSolar can exercise significant influence on Shangro Lvneng and accounts for its investment using the equity method. JinkoSolar’s share of Shangrao Lvneng’s results of operations is included in equity (loss)/income in affiliated companies in the Group’s consolidated statements of operations, with a loss of RMB4 million for the year ended December 31, 2022. The carrying value of this investment was RMB160 million as of December 31, 2022. Equity securities without readily determinable fair values In October 2021, the Group made capital injection in cash with the amount of RMB65 million in Shenzhen Laplace Energy Technology Co., Ltd. (“Laplace”), a company in Guangdong province, China, and owns 2.88% equity interests. Such equity securities without readily determinable fair values are measured and recorded using a measurement alternative that measures the securities at cost as adjusted for observable price changes and impairments. In December 2021, the Group made capital injection in cash with the amount of RMB30 million in Ningxia Xiaoniu Automation Equipment Co., Ltd. (“Xiaoniu”), a company in Ningxia hui autonomous region, China, and owns 0.9375% equity interests. Such equity securities without readily determinable fair values are measured and recorded using a measurement alternative that measures the securities at cost as adjusted for observable price changes and impairments. In November 2022, the Group made capital injection in cash with the amount of RMB150 million in Aiswei Technology Co., Ltd . (“Aiswei”), a company in Shanghai, China, and owns 2.9126% equity interests. Such equity securities without readily determinable fair values are measured and recorded using a measurement alternative that measures the securities at cost as adjusted for observable price changes and impairments. There was no re-measurement gain or loss being recognized in connection with equity investments accounted for using the measurement alternative for the years ended December 31, 2020, 2021 and 2022. Equity securities applying fair value option In June, 2022, the Group made capital injection in cash with the amount of RMB 77 million in Zhejiang Xiangbang Technology Co., Ltd . (“Zhejiang Xiangbang”), a company in Hangzhou, China, and owns 2.98% equity interests. The Group irrevocably elected fair value option to initially and subsequently measure the investment in Xiangbang in its entirety at fair value with changes in fair value recognized in earnings The Group recorded change in fair value of its investment in Zhejiang Xiangbang with the amount of RMB 102 million for the year ended December 31, 2022. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY, PLANT AND EQUIPMENT, NET. | |
PROPERTY, PLANT AND EQUIPMENT, NET | 13. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment used in continuing operation and related accumulated depreciation are as follows (RMB in thousands): As of December 31, 2021 2022 RMB RMB Buildings 6,875,072 12,655,905 Machinery and equipment 14,199,961 22,435,247 Motor vehicles 71,837 114,936 Furniture, fixture and office equipment 1,408,296 1,995,407 22,555,166 37,201,495 Less: Accumulated depreciation (5,232,342) (6,462,379) Subtotal 17,322,824 30,739,116 Construction in progress 2,647,070 1,550,972 Property, plant and equipment, net 19,969,894 32,290,088 Depreciation expenses were RMB1,161 million, RMB1,604 million and RMB2,585 million for the years ended December 31, 2020, 2021 and 2022, respectively. For the years ended December 31, 2020, 2021 and 2022, the Group disposed certain equipment with the net book value amounting of RMB610 million, RMB390 million and RMB1,118 million and recognized related disposal loss amounted to RMB428 million, RMB350 million and RMB249 million respectively. Increase in disposal loss on property, plant and equipment was mainly due to the automation upgrade of the Group. Construction in progress primarily represents the construction of new production line. Costs incurred in the construction are capitalized and transferred to property and equipment upon completion, at which time depreciation commences. Significant increase of property, plant and equipment during the year ended December 31, 2022 was attributable to the expansion of manufacturing capacity and automation upgrade of the Group. For the years ended December 31, 2020, 2021 and 2022, the Group recorded impairments of RMB20 million, RMB150 million and RMB374 million related to the retirement of certain equipment in production lines that had become obsolete due to automation upgrade of the Group. As of December 31, 2021 and 2022, certain property, plant and equipment with net book value amounting of RMB4,115 million and RMB5,210 million were pledged as collateral for the Group’s borrowings (Note 18). As of December 31, 2021 and 2022, certain property, plant and equipment with net book value of RMB105 million and nil were pledged as collateral for the issuance of bank acceptance notes. |
LAND USE RIGHTS, NET
LAND USE RIGHTS, NET | 12 Months Ended |
Dec. 31, 2022 | |
LAND USE RIGHTS, NET | |
LAND USE RIGHTS, NET | 14. LAND USE RIGHTS, NET Land use rights represent fees paid to the government to obtain the rights to use certain lands over periods of 50 As of December 31, 2021 2022 RMB RMB Land use rights 1,196,668 1,535,556 Less: accumulated amortization (106,611) (104,132) Land use rights, net 1,090,057 1,431,424 Amortization expense was RMB12 million, RMB18 million and RMB27 million for the years ended December 31, 2020, 2021 and 2022, respectively. As of December 31, 2022, estimated amortization expense in each of the next five years is RMB30 million. As of December 31, 2021 and 2022, certain land use rights with net book value of RMB110 million and RMB169 million were pledged as collateral for the Company’s borrowings (Note 18). As of December 31, 2021 and 2022, certain land use rights with net book value of RMB15 million and nil were pledged as collateral for the issuance of bank acceptance notes. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2022 | |
INTANGIBLE ASSETS, NET | |
INTANGIBLE ASSETS, NET | 15. INTANGIBLE ASSETS, NET Intangible assets and their related amortization are as follow (RMB in thousands): As of December 31, 2021 2022 RMB RMB Trademark 1,581 1,230 Computer software 94,712 135,218 Less: accumulated amortization (40,809) (56,848) Intangible assets, net 55,484 79,600 Amortization expense was RMB10 million, RMB12 million and RMB17 million for the years ended December 31, 2020, 2021 and 2022, respectively. |
OTHER ASSETS - THIRD PARTIES
OTHER ASSETS - THIRD PARTIES | 12 Months Ended |
Dec. 31, 2022 | |
OTHER ASSETS - THIRD PARTIES | |
OTHER ASSETS - THIRD PARTIES | 16. OTHER ASSETS – THIRD PARTIES Other assets are consisted of the follows (RMB in thousands): As of December 31, 2021 2022 RMB RMB Prepayments for purchase of property, plant and equipment 1,859,173 1,162,351 Refund receivable of U.S. countervailing duties and anti-dumping duties 580,058 — Deposit for rent and others 175,297 131,611 Prepayment for warranty insurance premium 111,537 114,088 Prepayment of income tax attributable to intercompany transactions 16,159 15,474 Less: Allowance for credit losses (3,064) (1,855) Total 2,739,160 1,421,669 During the year of 2018, the U.S. Department of Commerce (“DOC”) issued the amended final results of its fourth administrative review on the counter-veiling duties (“CVD”) imposed on the crystalline silicon photovoltaic, or CSPV, cells, whether or not incorporated into modules, from China. As a result, the Group’s CVD rate was updated to be 10.64% from 20.94%, covering the period from January 1, 2015 to December 31, 2015, and all future exports to the US starting from July 2018 (“CVD AR4”). Pursuant to the final results of fourth administrative review, the Group recorded a reversal of costs of revenues and recognized refundable deposits due from the U.S. Customs with the amount of USD31 million (RMB210 million), representing the difference between the amended rate and the previous rate during the period from January 1, 2015 to December 31, 2015. During the year of 2020, CVD rate was further amended to be 4.22%. The Group recorded a reversal of costs of revenues and refundable deposits with the amount of USD25 million (RMB164 million) based on the difference between the amended rate and the previous rate. In November 2022, due to the acceleration of cash liquidation procedures in relation to the CVD AR4, the Group received CVD AR4 refunds with the amount of USD 69 million (RMB 499 million) from the U.S. Customs, including principal amount of USD 56 million (RMB 400 million) and interests of USD 14 million (RMB 100 million). During the year of 2019, the DOC issued its final results of the fifth administrative review, the Group’s CVD rate was finalized to be 12.70% from 20.94%, covering the period from January 1, 2016 to December 31, 2016, and all future exports to the US starting from August 2019 (“CVD AR5”). Pursuant to the final results of fifth administrative review, the Group recorded a reversal of costs of sales and recognized refundable deposits due from the U.S. Customs with the amount of USD37 million (RMB260 million) on an amortized cost basis based on its best estimation of related liquidation. In May 2022, CVD rate was further amended to be 5.86%. The Group recorded a reversal of costs of sales and refundable deposits with the amount of USD33 million (RMB 226 million) based on the difference between the amended rate and the previous rate. Subsequently in January 2023, due to the acceleration of cash liquidation procedures in relation to the CVD AR5, the Group received CVD AR5 refunds with the amount of USD 87 million (RMB 593 million) from the U.S. Customs, including principal amount of USD 70 million (RMB 477 million) and interests of USD 17 million (RMB 116 million). Hence, the Group reclassified the CVD AR5 receivables from “Other assets-third parties” to “Prepayments and other current assets” as of December 31, 2022 (Note 11). During the year of 2020, the U.S. Department of Commerce issued its final results of the sixth administrative review, and the finalized CVD rate applicable to the Group was 12.67%, which was initially 20.94%, covering the period from January 1, 2017 to December 31, 2017, and all future exports to the United States starting from December 2020 (“CVD AR6”). Pursuant to the final results of sixth administrative review, the Group recorded a reversal of costs of sales and recognized refundable deposits due from the U.S. Customs with the amount of USD0.4 million (RMB3 million) under “other assets - third parties” on an amortized cost basis based on its best estimation of related liquidation. During the year of 2021, CVD rate was further amended to be 11.97%. The Group recorded a reversal of costs of sales and refundable deposits with the amount of USD0.04 million (RMB0.23 million) based on the difference between the amended rate and the previous rate. As of December 31, 2022, in light of the acceleration of liquidation of the refundable deposits, based on its latest communication from the DOC and best estimation, the Group considered the CVD AR6 receivables can be collected within the next 12 months and therefore reclassified the receivables from “Other assets-third parties” to “Prepayments and other current assets” (Note 11). The following table summarizes the activity in the allowance for credit losses related to deposits for the year ended December 31, 2022(RMB in thousands): For the year ended December 31, 2022 RMB At beginning of year 3,064 Impact of adopting ASC Topic 326 — Addition — Reversal (1,209) Writeoff — At end of year 1,855 |
OTHER PAYABLES AND ACCRUALS
OTHER PAYABLES AND ACCRUALS | 12 Months Ended |
Dec. 31, 2022 | |
OTHER PAYABLES AND ACCRUALS | |
OTHER PAYABLES AND ACCRUALS | 17. OTHER PAYABLES AND ACCRUALS Other payables and accruals are consisted of the follows (RMB in thousands): As of December 31, 2021 2022 RMB RMB Payables for purchase of property, plant and equipment 3,073,625 6,412,134 Freight payables 858,027 1,359,813 Accrued utilities, rentals and interest 424,436 629,977 Customs duties 157,655 147,759 Accrued warranty cost 149,164 221,699 Value-added tax and other tax payables 74,784 329,078 Commission payables 24,861 13,587 Contracted labor fees 24,392 20,015 Accrued professional service fees 19,739 34,110 Insurance premium payables 6,839 1,853 Others 30,562 44,359 Total 4,844,084 9,214,384 |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2022 | |
BORROWINGS | |
BORROWINGS | 18. BORROWINGS (a) Short-term borrowings Components of short-term borrowings as of December 31, 2021 and 2022 were as follows (RMB in thousands): As of December 31, 2021 2022 RMB RMB Short-term borrowings 11,967,827 10,316,714 Long-term borrowings—current portion 1,371,540 2,102,456 Total short-term borrowings 13,339,367 12,419,170 The short-term borrowings outstanding as of December 31, 2021 and December 31, 2022 carried a weighted average interest rate of 3.28% and 3.10% per annum, respectively. Included in the balance of short-term bank borrowings as of December 31, 2022 were borrowings of RMB2,186 million, RMB120 million, and RMB1,002 million which are denominated and repayable in EUR, JPY and USD, respectively. Details of the Group’s short-term borrowings as of December 31, 2022 are (RMB in thousands): Type of loan As of December 31, 2022 Guarantee/Collateral Credit loan 4,055,137 a) Letter of credit loan 2,792,460 a) 256,313 Guaranteed by JinkoSolar Holding b) 167,000 Guaranteed by JinkoSolar Holding and certain shareholders of the Group b) Guaranteed by subsidiaries 50,000 Guaranteed by Jiangxi Jinko and certain shareholders of the Group b) of the Group and third parties 1,942,835 Guaranteed by Jiangxi Jinko b) and/or collateralized on the 1,329,716 Guaranteed by Zhejiang Jinko b) Group’s assets 20,197 Guaranteed by Agricultural Bank of China Shangrao Guangxin Branch b) 25,312 Guaranteed by China Export & Credit Insurance Corporation b) 1,132,645 Financings associated with failed sale-lease back transactions c) 647,555 Guaranteed and collateralized on buildings, equipment and other assets of the Group and shareholders of the Group d) Total 12,419,170 a) As of December 31, 2022, the Group had short-term bank borrowings of RMB 4,055 million credit loans, and RMB 2,792 million letter of credit loans. The remaining short-term bank borrowings of RMB 4,439 million were either guaranteed by other parties and/or collateralized on the Group’s assets, detailed as following: b) Borrowings of RMB 256 million guaranteed by JinkoSolar Holding, RMB 167 million guaranteed by JinkoSolar Holding and certain shareholders of the Group, RMB 50 million guaranteed by Jiangxi Jinko and certain shareholders of the Group, RMB 1,943 million guaranteed by Jiangxi Jinko, RMB 1,330 million guaranteed by Zhejiang Jinko, RMB 20 million guranteed by Agricultural Bank of China Shangrao Guangxin Branch, and RMB 25 million guranteed by China Export & Credit Insurance Corporation, respectively. c) As of December 31, 2022, the Group recorded financings associated with failed sale-lease back transactions with the amount of RMB 1,463 million under long-term borrowings, and RMB 1,133 million as current portion (Note 18). d) RMB 120 million collateralized on the account receivables and inventories of the Group, RMB 528 million collateralized on the Group’s certain building and equipment, including RMB 329 million which were also collateralized on the Group’s certain land use rights, RMB 95 million were also collateralized on the Group’s certain land use rights and inventories. In addition, included in these borrowings there were borrowings of RMB120 million guaranteed by Jinkosolar Holding, RMB100 million guaranteed by JinkoSolar Holding and Zhejiang Jinko, and RMB288 million guaranteed by Jiangxi Jinko. The net book value of the total collateralized accounts receivables, land use right, building, equipment, inventories was RMB1,006 million, RMB169 million, RMB1,102 million, RMB4,108 million and RMB2,809 million, respectively as of December 31, 2022. (b) Long-term borrowings Components of short-term borrowings as of December 31, 2021 and 2022 were as follows (RMB in thousands): As of December 31, 2021 2022 RMB RMB Long-term bank borrowings 590,013 3,329,075 Long-term financings associated with failed sale-leaseback transactions 2,756,452 2,595,686 Other long-term borrowings 7,921,530 9,200,490 Less: Current portion of long-term borrowings (99,256) (969,811) Less: Current portion of financings associated with failed sale-leaseback transactions (1,272,284) (1,132,645) Total long-term borrowings 9,896,455 13,022,795 Future principal repayments on the long-term borrowings are as follows (RMB in thousands): Year ending December 31, RMB Year ended December 31 2023 3,862,228 2024 2,875,790 2025 5,085,899 2026 2,110,558 2027 625,033 Thereafter 565,743 Total 15,125,251 1) Long-term bank borrowings In 2021, the Group entered into a 3 In 2021, the Group entered into two separate 5 In 2022, the Group entered into a 5 In 2022, the Group entered into a 2-year loan agreement with Bank of Communications for a principle amount of RMB100 million with the interest rate of 3.65%, which is due and payable in July 2024. The borrowing was guaranteed by Jinko Sichuan, Jinko Chuxiong and Jinko Shangrao and collateralized on the Group’s certain equipment with the net book value of RMB110 million. As of December 31, 2022, the total outstanding balances amounted to RMB100 million. In 2022, the Group entered into a 2-year loan agreement with the Export-Import Bank of China for a principle amount of RMB817 million (EUR110 million) and RMB208 million (EUR28 million) with the interest rate of 2.10% and 2.70%, which is due and payable in October 2023 and September 2024, respectively. In 2022, the Group entered into a 3-year loan agreement with Industrial Bank CO. LTD for a principle amount of RMB150 million with the interest rate of 4.1%, which is due and payable from September 2022 to March 2025. As of Decemeber 31, 2022, the outstanding balances amounted to RMB149 million. In 2022, the Group entered into a 7-year revolving loan facility agreement with a financial consortium constitued by Agricultural Bank of China, China Construction Bank, China CITIC Bank and China Everbright bank CO., ltd in an aggregate principle amount not exceeding RMB2.4 billion. Borrowings drawn down from the loan facility were guaranteed by Jiangxi Jinko. As of December 31, 2022, the Group drew down borrowings from the bank facility with the amount of RMB397 million with the interest rate of 4.1% which were repayable from November 2022 to Febrary 2029. As of December 31, 2022, the total outstanding balances amounted to RMB397 million, including RMB27 million due in June 2023. In 2022, the Group entered into a 7-year loan agreement with Industrial Bank Co.,LTD. for a principle amount of RMB31 million with the interest rate of 3.95%, which was repayable in December 2029. The borrowing was guaranteed by Jiangxi Jinko. In 2022, the Group entered into a 3-year loan agreement with China Everbright bank CO., ltd. for a principle amount of RMB240 million with the interest rate of 4%, which was repayable in March 2025. The borrowing was guaranteed by Jiangxi Jinko. As of Decemeber 31, 2022, the outstanding balances amounted to RMB240 million. In 2022, the Group entered into a 3-year loan agreement with Bank of Shanghai Co.,Ltd. for a principle amount of RMB100 million with the interest rate of 3.65%. The borrowing was guaranteed by Jiangxi Jinko. As of December 31, 2022, the total outstanding balances amounted to RMB100 million, including RMB10 million due in September 2023. In 2022, the Group entered into a 3 In 2022, the Group entered into a 3 In 2022, the Group entered into a 3 In 2022, the Group entered into a 3 In 2022, the Group entered into a 5 In 2022, the Group entered into three separate 5 In 2022, the Group entered into a 2 In 2022, the Group entered into a 4 The long-term borrowings contain covenants including, among others, those related to certain financial metrics, liens, consolidation, merger and sale of the Group’s assets. The Group is in compliance with all of the loan covenants as of December 31, 2021 and 2022. 2) Financings associated with failed sale-leaseback transactions During the year ended December 31, 2021 and 2022, the Group sold certain machinery and equipment with total carrying amount of RMB2,630 million and RMB1,761 million to certain third parties (the “purchaser-lessors”) for a total consideration of RMB3,334 million and RMB1,768 million and simultaneously entered into contracts to lease back these assets from the purchaser-lessors for periods from one 3) Other long-term borrowings In the February 2018, Jiangxi Jinko, together with government background funds, established Jinko Sichuan. Cash capital injections with an aggregate amount of RMB1.3 billion had been made by the non-controlling shareholders through December 31, 2021. The Group controls and consolidates such entity in its financial statements. In October 2020, Jiangxi Jinko entered into a supplementary investment agreement with the government background funds, pursuant to which the government background funds will no longer participates in any business decision of Jinko Sichuan and enjoys a fixed annual return of 6% on its capital injection. Additionally, Jiangxi Jinko shall repurchase all the 30% equity interests (the non-controlling interest) held by the government background funds upon the sixth anniversary of the capital injection date with a repurchase price equivalent to the capital injection made by the government background funds. Considering the government investment shall be repaid on a fixed date and for fixed amounts, redemption of the government investment is considered to be mandatory and certain to occur and is not upon the occurrence of a conditional event nor depends upon the satisfaction of a specified contingency. The Group assessed the impact of the above amendments and concluded that these amendments represented a settlement of the non-controlling interests given characteristics of the non-controlling interests has been completely changed to loan liabilities. At the time of the settlement, the carrying amount of the non-controlling interests with the amount of RMB997 million was derecognized, and the new loan liabilities was recorded at fair value of RMB1,114 million, with the difference recorded against additional paid-in-capital. In addition, in July, September and October 2021, the Jinko Sichuan received capital injection with the amount of RMB100 million, RMB150 million and RMB50 million from government background funds which bear a fixed annual return of 5.18%, and shall be repaid upon the fifth anniversary of the capital injection date. The Group recorded such capital injection as long-term borrowings. As of December 31, 2021 and 2022, the total outstanding balances amounted to RMB1,560 million and RMB1,633 million, respectively. In the second and third quarter of 2018, government background companies made capital injection with the amounted of RMB517 million into Haining Jinko. In the third quarter of 2019, to support developments of local enterprise, government background funds of Zhejiang province made investment into Haining Jinko as capital injections through limited partnership established together with Zhejiang Jinko. The total capital injection received from government funds in the year of 2019 amounted to RMB846 million. In the fourth quarter of 2020, the Group entered into supplementary investments agreement with government background funds, pursuant to which the government background funds will no longer participate in any business decision of Haining Jinko and enjoys fixed annual return within the range from 4.75% to 5.23% on their capital injections respectively. Additionally, the Group shall repurchase all the equity interests (the non-controlling interest) held by the government background funds upon the fifth or sixth anniversary of the capital injection date with a repurchase price equivalent to the capital injection made by the government background funds. Considering the government investment shall be repaid on a fixed date and for fixed amounts, redemption of the government investment is considered to be mandatory and certain to occur and is not upon the occurrence of a conditional event nor depends upon the satisfaction of a specified contingency. The Group assessed the impact of the above amendments and concluded that these amendments represented a settlement of the non-controlling interests given characteristics of the non-controlling interests has been completely changed to loan liabilities. At the time of the settlement, the carrying amount of the non-controlling interests with the amount of RMB1,164 million was derecognized, and the new loan liabilities was recorded at fair value of RMB1,193 million with the difference recorded against additional paid-in-capital. As of December 31, 2021 and 2022, the total outstanding balances amounted to RMB1,096 million and RMB1,099 million respectively. In the September 2019, Jiangxi Jinko, together with government background funds, established Jinko Yiwu. Cash capital injections with an aggregate amount of RMB765 million had been made by the non-controlling shareholders through December 31, 2020. The Group controls and consolidates such entity in its financial statements. In August 2020, Jiangxi Jinko entered into a supplementary investment agreement with the government background funds, pursuant to which the government background funds will no longer participates in any business decision of Jinko Yiwu and enjoys a fixed annual return of 6% on its capital injection. Additionally, Jiangxi Jinko shall repurchase all the 45% equity interests (the non-controlling interest) held by the government background funds upon the fifth anniversary of the capital injection date with a repurchase price equivalent to the capital injection made by the government background funds. Considering the government investment shall be repaid on a fixed date and for fixed amounts, redemption of the government investment is considered to be mandatory and certain to occur and is not upon the occurrence of a conditional event nor depends upon the satisfaction of a specified contingency. The Group assessed the impact of the above amendments and concluded that these amendments represented a settlement of the non-controlling interests given characteristics of the non-controlling interests has been completely changed to loan liabilities. At the time of the settlement, the carrying amount of the non-controlling interests with the amount of RMB779 million was derecognized, and the new loan liabilities was recorded at fair value of RMB818 million, with the difference recorded against additional paid-in-capital. As of December 31, 2021 and 2022, the total outstanding balances amounted to RMB757 million and RMB754 million, respectively. In the December 2019, Jiangxi Jinko, together with a government background fund, established Jinko Chuzhou. Cash capital injections with an aggregate amount of RMB1.1 billion had been made by the non-controlling shareholder through December 31, 2022. The Group controls and consolidates such entity in its financial statements. In August 2020, Jiangxi Jinko entered into a supplementary investment agreement with the government background fund, pursuant to which the government background fund will no longer participates in any business decision of Jinko Chuzhou and enjoys a fixed annual return of 4.35% on its capital injection. Additionally, Jiangxi Jinko shall repurchase all the 45% equity interests (the non-controlling interest) held by the government background fund upon the sixth anniversary of the capital injection date with a repurchase price equivalent to the capital injection made by the government background fund. Considering the government investment shall be repaid on a fixed date and for fixed amounts, redemption of the government investment is considered to be mandatory and certain to occur and is not upon the occurrence of a conditional event nor depends upon the satisfaction of a specified contingency. The Group assessed the impact of the above amendments and concluded that these amendments represented a settlement of the non-controlling interests given characteristics of the non-controlling interests has been completely changed to loan liabilities. At the time of the settlement, the carrying amount of the non-controlling interests with the amount of RMB859 million was derecognized, and the new loan liabilities was recorded at fair value of RMB846 million, with the difference recorded against additional paid-in-capital. In July and September 2021, Jinko Chuzhou received two 5-year loans with the amount of RMB150 million and RMB100 million from the government background fund which both bear a fixed annual return of 4.35%. As of December 31, 2021 and 2022, the total outstanding balances amounted to RMB1,025 million and RMB701 million, respectively. In September and October 2021, Rui Xu entered into two 5-year loan agreements with a government background company with the principle amount of RMB20 million and RMB20 million and the interest rate of 5.05% and 5.05%, respectively. As of December 31, 2022, the total outstanding balances amounted to RMB40 million. In April 2020, Jiangxi Jinko, together with a government background fund, established Jinko ShangRao. The Group controls and consolidates such entity in its financial statements. Pursuant to the investment agreement entered by Jiangxi Jinko and the government background fund, the government background fund will provide its investment into Shangrao Jinko of RMB4.5 billion with the interest rate stipulated by bank for the corresponding period. Jiangxi Jinko shall repurchase all the 45% equity interests (the non-controlling interest) held by the government background fund upon the sixth anniversary of the date of the investment agreement with a repurchase price equivalent to the capital injection made by the government background funds. Considering the government investment shall be repaid on a fixed date and for fixed amounts, redemption of the government investment is considered to be mandatory and certain to occur and is not upon the occurrence of a conditional event nor depends upon the satisfaction of a specified contingency. Therefore, these government investments were accounted as loan liabilities. In January 2021, Jinko Shangrao received a 5-year In July 2020, the Group entered into a 2-year loan agreement with Ping An International Financial Leasing Co., Ltd. for a principle amount of RMB49,263 million which was repayable from July 2020 to July 2022. The borrowing was guaranteed by Jiangxi Jinko. The loan was repaid in July 2022. In July 2021, Haining Jinko entered into a 5-year In October 2021, Anhui Jinko entered into a 6 In October and December 2021, Yushan Jinko entered into a 6-year loan agreement with a government background company with the principle amount of RMB200 million and RMB100 million and interest rate of 4.90% and 4.90%, respectively. These loans will be repaid upon the sixth anniversary of the borrowing date. As of December 31, 2021 and 2022, the total outstanding balances amounted to RMB287 million and RMB278 million, respectively. In January 2022, Yushan Jinko entered into a 6-year In 2022, Anhui Jinko entered into three separate 6-year In July 2022, Jinko Feidong entered into a 5-year loan agreement with a government background company with the principle amount of RMB205 million and interest rate of 4.75%. The loan will be repaid upon the fifth anniversary of the borrowing date. As of December 31, 2022, the total outstanding balances amounted to RMB208 million. In July 2022, Jinko Leshan entered into a 4-year In August 2022, Haining Jinko entered into a 5 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
LEASES | |
LEASES | 19. LEASES The Group’s operating lease primarily represent offices and overseas manufacturing facilities and warehouses. Most of the operating leases are for terms ranging from 3 to 20 years, although terms and conditions can vary from lease to lease. The Group has assessed the specific terms and conditions of each operating lease to determine the amount of the lease payments and the length of the lease term, which includes the minimum period over which lease payments are required plus any renewal options that are both within the Group’s control to exercise and reasonably certain of being exercised upon lease commencement. The Company assesses all relevant factors to determine if sufficient incentives exist as of lease commencement to conclude whether or not renewal is reasonably certain. There are no material residual value guarantees provided by the Company nor any restrictions or covenants imposed by the operating leases to which the Company is a party. In determining the lease liability, the Group utilizes its incremental borrowing rate for debt instruments with terms approximating the term for its operating leases to discount the future lease payments over the lease term to present value. The Company does not incur variable lease payments for its operating leases. The Group’s finance leases primarily represent machinery and equipment utilized in the Group’s production facilities. All of the Group’s finance leases meet one or more of the criteria as: a) the lease transfers ownership of the underlying asset to the Group by the end of the lease term; b) the lease grants the Group an option to purchase the underlying asset that the lessee is reasonably certain to exercise; c) the lease term is for the major part of the remaining economic life of the underlying asset; d) the present value of the sum of the lease payments and any residual value guaranteed by the Group that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset; e) the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. ROU of capital lease is recorded at the aggregate of future minimum lease payments and estimated residual value of the leased equipment. In determining the lease liability, the Group utilizes its incremental borrowing rate for debt instruments with terms approximating the term for its capital leases to discount the future lease payments over the lease term to present value. The balances for the operating and finance leases where the Group is the lessee are presented as follows (RMB in thousands): 2021 2022 December 31 December 31 RMB RMB Operating leases: Operating lease liabilities - current 62,515 65,489 Operating lease liabilities - non-current 385,420 339,885 Total operating lease liabilities 447,935 405,374 Operating lease right-of-use assets, net 438,271 396,966 Financing leases: Financing lease liabilities - current 194,939 168,381 Financing lease liabilities - non-current 236,374 69,881 Total financing lease liabilities 431,313 238,262 Financing lease right-of-use assets, net 628,592 558,407 (a) The components of lease expenses were as follows (RMB in thousands): For the years ended December 31, 2021 2022 RMB RMB Lease cost: Amortization of right-of-use assets 135,791 129,869 Interest of lease liabilities 51,575 36,553 Expenses for short-term lease within 12 months 3,052 9,154 Total lease cost 190,418 175,576 (b) Supplemental cash flow information related to leases was as follows (RMB in thousands): For the years ended December 31, 2021 2022 RMB RMB Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows for operating leases 76,400 72,906 Operating cash outflows for finance leases 25,974 19,926 Financing cash outflows for finance leases 286,292 216,722 Total cash paid for amounts included in the measurement of lease liabilities: 388,666 309,554 Lease obligation accrued in exchange for right-of-use assets: Operating lease liabilities 185,472 3,476 Finance lease liabilities 132,188 — Total lease obligation accrued in exchange for right-of-use assets: 317,660 3,476 (c) Supplemental balance sheet information related to leases was as follows (RMB in thousands) : Operating leases: As of December 31, 2021 2022 Weighted-average remaining lease term 7.35 years 6.21 years Weighted-average discount rate 6.47% 6.46% Financing leases: As of December 31, 2021 2022 Weighted-average remaining lease term 1.94 years 0.94 years Weighted-average discount rate 5.65% 5.55% (d) Maturities of lease liabilities were as follows (RMB in thousands) : Operating leases: Year ending December 31, RMB Year ended December 31, 2023 85,637 2024 84,973 2025 75,863 Thereafter 206,541 Total undiscounted lease payments 453,014 Less: imputed interest 47,640 Total lease liabilities 405,374 Financing leases: Year ending December 31, RMB Year ended December 31, 2023 236,657 2024 34,252 Total undiscounted lease payments 270,909 Less: imputed interest 32,647 Total lease liabilities 238,262 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 20. EARNINGS PER SHARE Basic earnings per share and diluted earnings per share have been calculated as follows (RMB in thousands, except for share and per share data): For the years ended December 31, 2020 2021 2022 RMB RMB RMB Numerator: Net income 335,255 955,572 1,565,139 Less: Net income attributable to non-controlling interests 104,870 234,554 944,633 Net income attributable to JinkoSolar’s ordinary shareholders 230,385 721,018 620,506 Dilutive effects of convertible senior notes — (308,339) — Dilutive effects of call option (462,752) — — Numerator for diluted income/(loss) per share (232,367) 412,679 620,506 Denominator: Denominator for basic earnings per share - weighted average number of ordinary shares outstanding 178,938,853 190,672,869 198,004,260 Dilutive effects of share options — 540,620 2,404,234 Dilutive effects of convertible notes — 14,506,283 — Dilutive effects of call option (7,500,000) — — Denominator for diluted calculation - weighted average number of ordinary shares outstanding 171,438,853 205,719,772 200,408,494 Basic earnings per share attributable to JinkoSolar’s ordinary shareholders 1.29 3.78 3.13 Diluted earnings/(loss) per share attributable to JinkoSolar’s ordinary shareholders (1.36) 2.01 3.10 For the years ended December 31, 2020 and 2022, convertible senior notes convertible into 17,708,332 and 14,427,088 shares were not included in the computation of diluted EPS because of their anti-dilutive effect, respectively. For the years ended December 31, 2020, because of the dilutive impact, potential shares underlying the call option arrangement (Note 22) were removed from weighted average number of ordinary shares outstanding since its issuance date, and changes in income of the assumed exercise of call option were also recorded as the adjustment to the consolidated net income to arrive at the diluted net income available to the Company’s ordinary shareholders. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2022 | |
EMPLOYEE BENEFITS | |
EMPLOYEE BENEFITS | 21. EMPLOYEE BENEFITS According to the guidance promulgated by the central government, companies (and employees) are required to contribute, in specified portions, to the social insurance funds (including medical care insurance, work injury insurance, unemployment insurance, maternity insurance and pension benefits) as well as the housing funds (collectively, “employee welfare funds”) on a monthly basis for all of the employees based on such employees’ actual salaries or the applicable capped salary base, whichever is lower. An employee is entitled to request its employer to make the required portion of contributions in the statutory amounts to the employee welfare funds. In line with local customary practices, the Company has made contributions to the social insurance funds which met the requirement of the local minimum wage standard, instead of its employees’ actual salaries as required by the above described guidance, and has not made full contribution to the housing funds. Based on the Company’s observation of local practices and consultation with relevant government authorities, the Company believes its practice has been consistent with the common practice adopted by businesses in Shangrao and Haining, where the Company’s main subsidiaries operate. However, the Company believes it is probable that it will be required to make additional contributions to the employee welfare funds if (i) the government authorities were to strictly enforce the statutory contribution requirements, or (ii) the employees were to request the Company to make full contributions to their employee welfare funds (such request, if made, would most likely be supported by the labor arbitration center or the labor administrative bureau). Therefore, the Company recognizes the difference between the amount of its actual contributions and the statutory contribution requirements under the guidance promulgated by the central government as a liability for employee welfare benefits. The unpaid balance of accrued liability accrued for the welfare benefits were RMB741 million and RMB1,071 million as of December 31, 2021 and December 31, 2022, respectively. On October 28, 2010, the Standing Committee of the National People’s Congress issued and adopted the Social Insurance Law (the “Social Insurance Law”), which became effective on July 1, 2011. The Social Security Law imposes certain fines for the aggregated amount of any outstanding contributions if such contributions are not made within a prescribed time period. In light of this requirement, the Company had accrued a penalty on the basis of a daily rate of 0.05% of the outstanding contributions as provided under the Social Insurance Law prior to 2014. The unpaid balance of penalty accrued for employee welfare benefits were RMB12 million and RMB On September 26, 2013, the Ministry of Human Resources and Social Security of the People’s Republic of China announced “Regulations on the Declaration and Payment of Social Welfare” (“New Social Security Regulation”), which took effect on November 1, 2013. The New Social Security Regulation clarifies that the local social security authority should issue a notification to the employers who fail to make appropriate contribution of social security and a late-payment penalty charge will only be imposed to employers who fail to pay the outstanding contribution within five days upon the receipt of the notification. However, there were different interpretations of the New Social Security Regulation as to applicability of the penalty charge by different local authorities in different cities and provinces in late 2013, therefore, the Company performed investigation and legal assessment as well as communicating with relevant local authorities. Legal assessment was completed in late 2014. In the opinion of the management, the probability that the Company would be required to pay late-payment penalty in connection with the unpaid contribution is remote, given that the Company has received certificates from local social security authorities which confirmed that the Company was in compliance with the local social insurance regulations as of December 31, 2014 and that local social security authorities have not issued any notification for payment of outstanding contribution to the Company. Accordingly, the Company did not accrue for late-payment penalty since then. |
CONVERTIBLE SENIOR NOTES AND CA
CONVERTIBLE SENIOR NOTES AND CALL OPTIONS | 12 Months Ended |
Dec. 31, 2022 | |
CONVERTIBLE SENIOR NOTES AND CALL OPTIONS | |
CONVERTIBLE SENIOR NOTES AND CALL OPTIONS | 22. CONVERTIBLE SENIOR NOTES AND CALL OPTIONS 2024 Convertible Notes The Company issued USD85 million of Convertible Senior Notes on May 17, 2019, which will mature on June 1, 2024 (the “2024 Notes”). The interest rate is 4.5% per annum payable semi-annually, in arrears. Holders have the option to convert their 2024 Notes at any time prior to the close of business on the third business day immediately preceding the maturity date at a conversion rate of 52.0833 ADSs per USD1,000 principal amount of the Notes (equivalent to an initial conversion price of approximately USD19.20 per ADS). The conversion rate is subject to change on anti-dilution and upon certain fundamental changes. Fundamental changes are defined as 1) any “person” or “group” beneficially owns (directly or indirectly) 50% or more of the total voting power of all outstanding classes of Company’s shares or has the power to elect a majority of the members of the board of directors; 2) Company consolidates with, or merge with or into, another person or the Company sells, assigns, conveys, transfers, leases or otherwise disposes of all or substantially all of its assets, or any person consolidates with, or merges with or into, the Company; 3) Termination of trading of Company’s ADSs; and 4) adoption of a plan relating to the Company’s liquidation or dissolution. The holders have the option to require the Company to repurchase the 2024 Notes, in whole or in part, in the event of a fundamental change for an amount equal to the 100% of the principal amount and any accrued and unpaid interest in the event of fundamental changes. Management assessed that the likelihood of fundamental change is remote. The holders will have the right to require the Company to repurchase for cash all or any portion of their notes on June 1, 2021 at a repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding, the repurchase date. While the 2024 Notes remain outstanding, the Company or its subsidiaries should not create or permit to subsist any security upon its property, assets or revenues (present or future) to secure any international investment securities or to secure any guarantee of or indemnity of any international investment securities unless the obligations under the Notes and the indenture (a) are secured equally and ratably therewith, or (b) have the benefit of such other security, guarantee, indemnity or other arrangement as shall be approved by holders of a majority in aggregate principal amount of the Notes then outstanding. During the year of 2021, certain 2024 Notes with the principal amount of USD16 million were converted into 3,281,244 ordinary shares of the Company. Accounting for 2024 Convertible Notes The Company has RMB as its functional currency, and the 2024 Notes are denominated in USD. As a result, the conversion feature is dual indexed to the Company’s stock as well as the RMB and USD exchange rate, and is considered an embedded derivative which needs to be bifurcated from the host instrument in accordance with ASC 815. ASC 815-15-25 provides that if an entity has a hybrid financial instrument that would require bifurcation of embedded derivatives under ASC 815, the entity may irrevocably elect to initially and subsequently measure a hybrid financial instrument in its entirety at fair value with changes in fair value recognized in earnings. The fair value election can be made instrument by instrument and shall be supported by concurrent documentation or a preexisting documented policy for automatic election. The Company elected to measure the 2024 Notes in their entirety at fair value. According to ASC 825-10-45-5, the Company measures the financial liability at fair value with qualifying changes in fair value recognized in net income. The Company also presents separately in other comprehensive income the portion of the total change in the fair value of the liability that results from a change in the instrument-specific credit risk. Further, as the functional currency of the Company is RMB, the fair value of the 2024 Notes is translated into RMB at each balance sheet date with the difference being reported as exchange gain or loss, except for the exchange rate remeasurement of the component of the change in fair value of the liability resulting from the cumulative changes in instrument-specific credit risk which is presented in other comprehensive income. In addition, all issuance costs associated with the 2024 Notes offering has been expensed as incurred in accordance with ASC 825-10-25-3, which states that upfront costs and fees related to items for which the fair value option is elected shall be recognized in the consolidated statements of operations and comprehensive as incurred and not deferred. As of December 31, 2021 and 2022, the estimated fair value of the 2024 Notes amounted to approximately RMB1,099 million and RMB1,071 million. The Company recorded a gain from foreign exchange remeasurement of RMB9 million and a loss from foreign exchange remeasurement of RMB60 million in net income for the year ended December 31, 2021 and 2022, respectively. The Company recorded a gain from change in fair value of 2024 Notes of RMB328 million and a loss from change in fair value of 2024 Notes of RMB12 million in net income for the years ended December 31, 2021 and 2022, respectively. The Company recorded gain from change in fair value of 2024 Notes of RMB56 million and RMB100 million in other comprehensive income for the year ended December 2021 and 2022, respectively. During the year of 2021, certain 2024 Notes with the principal amount of USD16 million were converted into 3,281,244 ordinary shares of the Company. Upon conversion of the 2024 Notes, accumulated gains due to changes in instrument-specific credit risk with amount of RMB14 million were reclassified from other comprehensive income to net income (Note 29). Call Option Concurrent with the issuance of the 2024 Notes, the Company used approximately USD30 million of the net proceeds from the offering to enter into zero-strike call option transactions (“Call option”), covering 1,875,000ADSs, with the initial purchasers of the 2024 Notes (“Dealer”). The Call option is intended to facilitate privately negotiated transactions by which investors in the Notes are able to hedge their investment. The Call option expires on July 28, 2021 or when the Dealer request early settlement. The Company has the right to elect settlement method. If cash settlement applies, the Dealer will deliver the amount of cash to the Company calculated based on the number of shares determined on the commencement date and the volume-weighted average price of the Company shares on the settlement date. If physical settlement applies, the Company will receive the fixed number of ADSs determined at the commencement date of the transaction. In 2021, the Company elected cash settlement method and total cash received from the exercise of call options amounted to RMB621 million. The economic substance of the Call option is the same as a traditional forward repurchase contract. Because the Call option permitted net cash settlement, it was classified as a derivative instrument measured initially and subsequently at fair value with changes in fair value recorded in earnings. The Company accounted for the Call option as a free-standing derivative asset on its consolidated balance sheet when the Call option was entered into in May 2019. The derivative asset was initially recorded at its fair value of US$30 million on the commencement date which represented the amount of cash transferred to the Dealer. The derivative asset was subsequently recorded at fair value with the change in fair value through May 2019. The Company recorded a gain from change in fair value of the call option with the amount of RMB476 million and loss of RMB136 million, an exchange loss of the call option with the amount of RMB14 million and an exchange gain of RMB0.3 million for the year ended December 31,2020 and 2021, respectively (Note 29). |
ORDINARY SHARES
ORDINARY SHARES | 12 Months Ended |
Dec. 31, 2022 | |
ORDINARY SHARES. | |
ORDINARY SHARES | 23. ORDINARY SHARES The Company’s authorized share capital is USD10 comprising 500,000,000 ordinary shares with a par value of USD0.00002 each. In January 2014, the Company closed an offering of 15,000,000 ordinary shares (3,750,000 ADSs) and received aggregated net proceeds of approximately USD126.3million, after deducting discounts and commissions but before offering expenses. In February 2018, the Company closed an offering of 16,560,000 ordinary shares (4,140,000 ADSs), par value USD0.00002 per share, at USD18.15 per ADS (equivalent to USD4.54 per share). The net proceeds of the follow-on offering to the Company, after deducting underwriting commissions and fees and estimated offering expenses with the amount of USD4 million, was approximately USD71.1 million. In February 2018, the Company also completed the private placement with Tanka International Limited, an exempted company incorporated in the Cayman Islands held by Mr. Xiande Li, chairman of the Company, and Mr. Kangping Chen, chief executive officer of the Company, for the issuance of 7,713,499 ordinary shares for USD35 million at USD4.54 per share. In May 2019, the Company closed an offering of 18,687,500 ordinary shares (4,671,875 ADSs), par value USD0.00002 per share, at USD16.00 per ADS (equivalent to USD4.00 per share). The net proceeds of the follow-on offering to the Company, after deducting underwriting commissions and fees and estimated offering expenses with the amount of USD4 million, was approximately USD71 million (RMB489 million). In December 2020, the Company completed to sell 5,976,272 ordinary shares (1,494,068 ADSs) through its at-the-market offering and was entitled to receive proceeds of USD98 million after deducting commissions and offering expense. All of the proceeds were received in January 2021. For the year ended December 31, 2020, 305,660 outstanding ADSs (1,222,640 shares) were repurchased with a total consideration of RMB29 million, which is shown as treasury stock. During the year of 2021, certain 2024 Notes with the principal amount of USD16 million were converted into 3,281,244 ordinary shares of the Company (Note 22). As of December 31, 2021 and 2022, total of 736,460 ADSs (2,945,840 shares) were repurchased but have not been retired with a total consideration of RMB43 million which is shown as treasury stock. As of December 31, 2021 and 2022, the Company’s issued and outstanding shares were 190,824,913 and 201,189,189, respectively. |
SUBSIDIARY'S OFFERING OF ITS EQ
SUBSIDIARY'S OFFERING OF ITS EQUITY INTERESTS | 12 Months Ended |
Dec. 31, 2022 | |
SUBSIDIARY'S OFFERING OF ITS EQUITY INTERESTS | |
SUBSIDIARY'S OFFERING OF ITS EQUITY INTERESTS | 24. SUBSIDIARY’S OFFERING OF ITS EQUITY INTERESTS In October 2020, Jiangxi Jinko, principal operating subsidiary of the Group, completed an RMB3.10 billion (approximately USD 461 million) equity financing. Immediately after the closing, third-party investors together with the Company’s principal shareholders and senior management personnel, directly or through their investment arms, collectively owned approximately a 26.7% equity interest in Jiangxi Jinko and the Company owned 73.3% equity interest in Jiangxi Jinko. Pursuant to the equity financing agreements, third-party investors have the option to require the Company’s principal shareholders (Mr. Xiande Li, Mr. Kangping Chen and Mr. Xianhua Li) to repurchase their equity interests in Jiangxi Jinko upon the occurrence of certain events. Considering these rights of third-party investors solely against the Company’s principal shareholders and did not change the Group’s rights attached to the Jiangxi Jinko’s ordinary shares, the equity financing in Jiangxi Jinko is not mandatorily nor contingently redeemable against Jiangxi Jinko or the Group, and therefore, the equity financing was classified as noncontrolling interest in the Company’s consolidated financial statements. Given the Group may not have been able to consummate the equity financing without the rights provided by the Company’s principal shareholders, values of the rights provided by the Company’s principal shareholders are deemed as shareholder contributions from the principal shareholders to the Company. Since the contributions from the Company’s principal shareholders incurred directly attributable to Jiangxi Jinko’s equity financing, the contributions were treated as issuance cost of the equity financing and was recorded as a reduction of noncontrolling interest with a credit of additional paid-in capital. Fair value of the rights provided by the Company’s principal shareholders approximated RMB140 million. On January 26, 2022, Jiangxi Jinko completed its initial public offering (“IPO”) and started trading on the Shanghai Stock Exchange’s Sci-Tech innovation board (“STAR Market”). The IPO raised net proceeds of approximately RMB 9,723 million, of which, RMB 6,419 million was recorded in the non-controlling interest and RMB 3,304 million was recorded in the additional paid in capital. After the IPO, the Group owned approximately 58.62% of Jiangxi Jinko. Jiangxi Jinko’s non-controlling interests’ ownership of the subsidiary changed from 26.72% to 41.38% due to the IPO. In April 2022, upon approval obtained from the board of directors of Jiangxi Jinko, Jiangxi Jinko declared dividends of RMB230 million for the year ended December 31, 2021, among with RMB95 million was distributed to the Company’s non-controlling interest shareholders. Jiangxi Jinko paid the dividends in 2022. |
SHARE BASED COMPENSATION
SHARE BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
SHARE BASED COMPENSATION | |
SHARE BASED COMPENSATION | 25. SHARE BASED COMPENSATION (a) Incentive plan of JinkoSolar Holding The Company adopted a long-term incentive plan (the “2009 Plan”) in July 2009 which was subsequently amended and restated. The 2009 plan provided for the issuance of options of 9,325,122 ordinary shares. The options have a contractual life of 7 years except for certain options granted to an employee in August 2009 that can be exercised until October 1, 2013. The share options will vest in 5 successive equal annual installments on the last day of each year from the grant date, provided that the personnel’s service with the Company has not terminated prior to each such vesting date. For 953,200 options granted to one employee in August 2009, the share options vested in a series of 36 months, on the last day of each month, commencing from October 1, 2008. The Company adopted a long-term incentive plan (the “2014 Plan”) in August 2014. The 2014 Plan provides for the issuance of options of 12,796,745 ordinary shares. The options have a contractual life of 10 year. The share options will vest in 5 successive equal annual installments on the last day of each year from the grant date, provided that the personnel’s service with the Company has not terminated prior to each such vesting date. The Company adopted a long-term incentive plan (the “2021 Plan”) in August 2021. The 2021 Plan provides for the issuance of restricted shares of 354,000 ordinary shares. The restricted shares have a contractual life of 5 year. The restricted shares will vest in 10 successive equal semi-annual installments on the first day of half-year anniversaries starting from the grant date, provided that the personnel’s service with the Company has not terminated prior to each such vesting date. The Company adopted a long-term incentive plan (the “2022 Plan”) in February 2022. The 2022 Plan provides for the issuance of restricted shares of 16,684,600 ordinary shares. The restricted shares have a contractual life of 3 year. Fifty percent (50%) of the restricted shares were immediately vested at the grant date and the rest of the restricted shares will vest in 12 successive equal quarter installments on the first day of quarter anniversaries starting from the grant date, provided that the personnel’s service with the Company has not terminated prior to each such vesting date (i) A summary of the share option activities under the Company’s share-based compensation plan for the years ended December 31, 2020, 2021 and 2022 is as follows (RMB in thousands, except for share, exercise price and contractual term): Number of Weighted-average option Weighted-average remaining Aggregate outstanding exercise price contractual term intrinsic value (USD/share) (in years) (RMB) Balance as of December 31, 2019 4,555,288 3.34 4.73 73,354 Granted — — — — Exercise (3,750,540) 3.32 — — Forfeited (88,000) 3.29 — — Balance as of December 31, 2020 716,748 3.46 4.25 58,836 Granted — — — — Exercise (105,200) 3.29 — — Forfeited (264,012) 3.29 — — Balance as of December 31, 2021 347,536 3.65 3.84 17,373 Granted — — — — Exercise (175,536) 3.35 — — Balance as of December 31, 2022 172,000 3.96 2.69 8,305 Vested as of December 31, 2022 172,000 3.96 2.69 8,305 Vested and exercisable as of December 31, 2022 172,000 3.96 2.69 8,305 The aggregate intrinsic value is calculated as the difference between the market price of ordinary shares, USD10.22 (RMB71.18) per share as of December 31, 2022 and the exercise prices of the options. Total intrinsic value of options exercised during the year ended December 31, 2020, 2021 and 2022 were RMB297 million, RMB6 million and RMB8 million, respectively. Share-based compensation expenses related to the option awards granted to the employees amounted to RMB1 million, RMB0.5 million and nil for the years ended December 31,2020, 2021 and 2022, respectively. The total fair value of shares vested for the years ended December 31, 2020, 2021 and 2022 were RMB4 million, RMB2 million and RMB5 million respectively. For the year ended December 31, 2022, total cash received from the exercise of share options was RMB5 million. (ii) The fair value of each restricted share granted with service conditions is estimated based on the fair market value of the underlying ordinary shares of the Company on the date of grant. The following table summarizes activities of the Company’s restricted shares under the 2021 Plan and 2022 Plan: Number of restricted shares Weighted average grant outstanding date fair value (RMB) Unvested as of January 1, 2021 — — Granted 354,000 86.38 Vested (35,400) 86.38 Unvested as of December 31, 2021 318,600 86.38 Granted 16,684,600 72.10 Vested (10,188,740) 72.08 Unvested as of December 31, 2022 6,814,460 72.38 Share-based compensation expenses of nil, RMB9 million and RMB968 million related to restricted shares were recognized for the years ended December 31, 2020, 2021 and 2022, respectively As of December 31, 2020, 2021 and 2022, there were nil, RMB20 million and RMB256 million of unrecognized compensation expenses related to restricted shares which is expected to be recognized over a weighted-average period of nil (b) Incentive plan of Jiangxi Jinko In October 2022, Jiangxi Jinko adopted its 2022 Equity Incentive Plan (the “Jiangxi Jinko 2022 Plan”), which permits the grant of stock options of Jiangxi Jinko to its employees. Under the plan, a total of 40,187,375 ordinary shares of Jiangxi Jinko were initially reserved for issuance. A summary of share option activities under the Jiangxi Jinko 2022 Plan for the years ended December 31, 2022 is as follows (RMB in thousands, except for share, exercise price and contractual term): Number of Weighted-average option Weighted-average remaining Aggregate outstanding exercise price contractual term intrinsic value (RMB/share) (in years) (RMB) Balance as of December 31, 2021 — — — — Granted 32,149,900 10.78 — — Exercise — — — — Balance as of December 31, 2022 32,149,900 10.78 2.89 124,420 Vested and expected to vest as of December 31, 2022 32,149,900 10.78 2.89 124,420 Vested and exercisable as of December 31, 2022 32,149,900 10.78 2.89 124,420 Share-based compensation expenses related to the option awards granted to the employees under Jiangxi Jinko 2022 Plan was amounted to RMB 33 million for the year ended December 31, 2022. The total share-based compensation expense of continuing operations for the year ended December 31, 2020, 2021 and 2022 was recorded in the respective items (RMB in thousands): For the years ended December 31, 2020 2021 2022 RMB RMB RMB Costs of revenues 329 131 17,676 Selling expenses 462 131 7,101 General and administrative expenses 145 9,622 974,564 Research and development expenses (13) — 1,528 Total 923 9,884 1,000,869 |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND BALANCES | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS AND BALANCES | |
RELATED PARTY TRANSACTIONS AND BALANCES | 26. (a) Related party balances Outstanding amounts due from/to related parties as of December 31, 2021 and 2022 were as follows (RMB in thousands): 2021 2022 December 31 December 31 RMB RMB Accounts receivable from related parties: Accounts receivable from JinkoPower for sales of solar modules and others 29,417 139,713 Notes receivables from a related party: Notes receivables from JinkoPower — 282,824 Advances to a related party: Advance to Xinte Silicon for inventory purchase — 56,860 Prepayment and other receivables from related parties: Prepayments to JinkoPower for outsourcing services 11,990 5,664 Other receivables due from JinkoPower for disposal of solar power projects — 12,953 Other receivables due from Sweihan PV Power Company P.S.J.C (“Sweihan PV”, which develops and operates solar power projects in Dubai) for technical services — 1,075 Other receivables from JinkoPower for miscellaneous transactions 5,358 3,413 Subtotal 17,348 23,105 Other assets from related parties: Long-term receivables due from JinkoPower for disposal of solar power projects — 14,603 Guarantee receivables due from JinkoPower 3,292 — Long-term receivables due from Sweihan PV — 37,760 Subtotal 3,292 52,363 Accounts payable due to a related party: Accounts payable due to Jinko-Tiansheng 15,863 — Advances from a related party Advances from JinkoPower — 3,829 Notes payables due to a related party Notes payables due to Xinte Silicon for inventory purchase — 419,500 Other payables due to a related party: Other payables due to JinkoPower for payments on behalf of the Company 2,230 5,964 (1) Balances due to related parties are interest-free, not collateralized, and have no definitive repayment terms. (2) On March 30, 2021, the Company signed an agreement to offset the debts and receivables between the Group and JinkoPower with the aggregate amount of RMB 71 million. (b) Related party transactions Transactions related parties for the year ended December 31, 2020, 2021 and 2022 were as follows (RMB in thousands): For the years ended December 31, 2020 2021 2022 RMB RMB RMB Revenue from sales of products and providing services to related parties Revenue from sales of products to Sweihan PV 51,202 — — Income of financing guarantees 14,688 6,364 — Revenue from sales of products to JinkoPower 5,072 27,099 325,175 Income of project management provided to Sweihan PV 3,721 660 2,979 Rental services provided to JinkoPower 2,177 4,004 5,041 Service expenses and silicon procurement provided by related parties Processing fee of OEM service charged by Jiangsu Jinko-Tiansheng 27,485 5,310 — Solar project management service provided by JinkoPower 9,443 8,753 7,133 Rental services provided by Jiangxi Desun 1,100 — — Electricity fee charged by JinkoPower 3,088 7,725 27,465 Other fees charged by JinkoPower — 16 — Silicon procurement from Xinte Silicon (Note 12) — — 824,785 - In connection with the Company’s disposal of JinkoSolar Power downstream business in 2016, the Group entered into a master service agreement with JinkoPower under which the Group agreed to provide a guarantee for JinkoPower’s financing obligations under its separate loan agreements. In the event that JinkoPower fails to perform its obligations under the loan agreements or otherwise defaults thereunder, the Company will become liable for JinkoPower’s obligations under the loan agreements. The Company will charge JinkoPower service fees for the debt payment guarantee service according the master service agreement. Pursuant to the master service agreement, guarantee service fee is to be settled annually, and the management of the Company believes the guarantee fee charges are at market rates. The guarantee receivables are settled upon the receipt of guarantee fees from JinkoPower. The Company received RMB18 million, RMB21 million and nil guarantee fees from JinkoPower in 2020, 2021 and 2022, respectively. In the year of 2022, the Group and JinkoPower entered into an agreement to cancel the above guarantee arrangement. As of December 31, 2020, 2021 and 2022, the Company recorded the guarantee fee income receivable amounted to RMB 107 million, RMB 3 million and RMB 3 million. The Company recorded a guarantee liability amounted to RMB 57 million, RMB 12 million and nil as of December 31, 2020, 2021 and 2022, respectively. The guarantee liability was amortized over the expected guarantee period from 1 to 16 years which relates to the life of the outstanding guaranteed bank loans in the subsequent reporting periods. Other income from JinkoPower for the guarantee fee amortized for the period during the year ended December 31, 2020, 2021 and 2022 amounted to RMB 15 million, RMB 6 million and RMB nil , respectively. - Solar module transactions with JinkoPower For the years ended December 31, 2020, 2021 and 2022, sales of solar module products to subsidiaries of JinkoPower amounted to RMB 5 million, RMB 27 million and RMB 325 million, respectively. Payment term offered by the Group to JinkoPower is consistent with the Group’s 3rd party sales arrangement. As of December 31, 2021 and 2022 outstanding receivables due from JinkoPower were RMB 29 million and RMB 423 million, respectively. - Solar module transactions with Sweihan PV For the years ended December 31, 2020, 2021 and 2022, sales of solar module products to Sweihan PV amounted to RMB 51 million, nil and nil , respectively. - Rental services provided to JinkoPower For the years ended December 31, 2020, 2021 and 2022, rental services provided to subsidiaries of JinkoPower amounted to RMB 2 million, RMB 4 million and RMB 5 million, respectively. - Transactions with Jinko-Tiansheng Jinko-Tiansheng is an OEM service provider who provided PV module processing and assembling services to the Group. For the years ended December 31, 2020, 2021 and 2022, Jinko-Tiansheng charged the Group processing fee amounted to RMB 27 million, RMB 5 million and nil , respectively. The Group entered into a share purchase agreement to dispose all of its equity interest in Jinko-Tiansheng to Jinko-Tiansheng’s other shareholders in November 2021. The carrying value of the Group’s investment in Jinko-Tiansheng which met recognition criteria in ASC 360-10-45-9 was reclassified as a held for sale asset as of December 31, 2021. The disposition was consummated in 2022 with a gain of RMB 12 million recognized (Note 5). - Solar project management service provided by JinkoPower In November 2017, the Company entered into an agreement with JinkoPower, which entrusted JinkoPower to exercise certain shareholders’ rights (other than right of profit distribution, right of residual property distribution and right of disposition) in five operating entities of overseas power stations wholly-owned by the Company, enabling JinkoPower to monitor the construction and daily operations of these power stations. The Company retains ownership of these power stations and there exists no call or other rights of JinkoPower. The Company agrees to pay service fees calculated based on the actual costs incurred by JinkoPower during the power stations’ construction period and a fixed amount fee during the operation period. The Company recorded service expenses incurred in the year of 2020, 2021 and 2022 amounted to RMB 9 million, RMB 9 million and RMB 7 million as cost of project assets, respectively. - Rental services provided by Jiangxi Desun On January 1, 2008, Jiangxi Desun and the Group entered into an operating lease agreement pursuant to which Jiangxi Desun leased its buildings and land use rights to the Group for a ten-year period from January 1, 2008 to December 31, 2017. In 2018, the agreement was extended for another 10 years from January 1, 2018 to December 31, 2027. Jiangxi Desun charged the Group RMB 1 million in rent for each of the years ended December 31, 2019 and 2020, respectively. The lease agreement was terminated in 2021 due to Jiangxi Desun’s liquidation. No lease charges from Jianxi Desun for the year ended December 31, 2021 and 2022. - Electricity fee charged by JinkoPower For the years ended December 31, 2020 and 2021 and 2022, electricity fee charged by subsidiaries of JinkoPower amounted to RMB 3 million, RMB 8 million and RMB 27 million, respectively. - Silicon procurement from Xinte Silicon JinkoSolar jointly invest in Xinte Silicon in 2021 which was accounted for under the equity method (Note 12). JinkoSolar purchased polysilicon of nil and RMB825 million from Xinte Silicon during the years ended December 31, 2021 and 2022, respectively. |
CERTAIN RISKS AND CONCENTRATION
CERTAIN RISKS AND CONCENTRATION | 12 Months Ended |
Dec. 31, 2022 | |
CERTAIN RISKS AND CONCENTRATION | |
CERTAIN RISKS AND CONCENTRATION | 27. CERTAIN RISKS AND CONCENTRATION (a) Concentrations of credit risk Financial instruments that potentially subject the Group to significant concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, restricted short-term investments, accounts receivable, prepayments and other current assets. As of December 31, 2021 and 2022, substantially all of the Group’s cash and cash equivalents, restricted cash and restricted short-term investments were held by major financial institutions located in the PRC. The Group is also exposed to the credit and financial risks of its suppliers to which the Group made advances. The Group’s financial condition and results of operations may be materially affected if the suppliers fail to meet their obligations of supplying silicon materials according to the contractually agreed schedules. (b) Foreign currency risk The Group has contracts for the sales of products, purchases of materials and equipment which are denominated in foreign currencies, including US Dollars, and Euros. For the year ended December 31, 2022, 58.09% of the Group’s revenues are dominated in foreign currencies, including US Dollars, Euros, Yen, Australian Dollars, Canadian Dollars, South African Rand and Pounds. Renminbi, the functional currency of the Group, is not freely convertible into foreign currencies. (c) Major customers The Group performs ongoing credit evaluations of its customers’ financial condition whenever deemed necessary and generally does not require collateral. The Group maintains an allowance for credit losses based upon the expected collectability of all accounts receivable, which takes into consideration an analysis of historical bad debts, specific customer creditworthiness and current economic trends. There was no accounts receivable represented by customers with balances over 10% of accounts receivables as of December 31, 2020 2021 and 2022, respectively. In 2020, 2021 and 2022, our largest customer accounted for 5.3%, 4.6% and 4.6% of the Group’ total revenue, respectively. (d) Major suppliers In 2020, 2021 and 2022, the Group’s five largest group suppliers accounted for 70.0%, 78.7% and 77.4%, respectively, of its total silicon purchases by value. In 2020, four of its group suppliers individually accounted for more than 10%, and its largest group supplier accounted for 19.6% of its total silicon purchases by value. In 2021, three of its group suppliers individually accounted for more than 10%, and its largest group supplier accounted for 28.5% of its total silicon purchases by value. In 2022, two of its group suppliers individually accounted for more than 10%, and its largest group supplier accounted for 34.0% of its total silicon purchases by value. A “group supplier” refers to an aggregation of the Group’s suppliers that are within the same corporate group. (e) Interest rate The Group’s main interest rate exposure relates to long-term borrowings. Any increase in interest rates would increase the Group’s finance expenses relating to our variable rate indebtedness and increase the costs of issuing new debt or refinancing its existing indebtedness. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES. | |
COMMITMENTS AND CONTINGENCIES | 28. COMMITMENTS AND CONTINGENCIES (a) Capital commitments The Group entered into several purchase agreements and supplementary agreements with certain suppliers to establish manufactory plants and acquire machineries to be used in the manufacturing of its products. The Group’s total future payments under these purchase agreements amounted to RMB13,591 million as of December 31, 2022. Year ending December 31, RMB 2023 6,357,915 2024 5,786,393 Thereafter 1,446,598 Total 13,590,906 (b) Contingencies In November 2018, one of the Group’s customers in Singapore (the “Singapore Customer”) filed two Notices of Arbitration (“NoAs”) in two arbitrations with Arbitration No. ARB374/18/PPD (“ARB 374”) and Arbitration No. ARB375/18/PPD (“ARB 375”), respectively, against Jinko Solar Import & Export Co., Ltd. (“Jinko IE”) at Singapore International Arbitration Centre. These NoAs were subsequently amended by the Singapore Customer, and Jinko IE received the amended Notices of Arbitration from the Singapore Customer on December 20, 2018. The Singapore Customer claimed respectively in ARB 374 and ARB 375 that the photovoltaic solar modules supplied by Jinko IE to the Singapore Customer under the purchase agreement dated December 25, 2012 (“2012 Contract”) and January 28, 2013 (“2013 Contract”) were defective. The Singapore Customer sought, inter alia, orders that Jinko IE replace the modules and/or that Jinko IE compensate the Singapore Customer for any and all losses sustained by the Singapore Customer as a result of the supply of allegedly defective modules. In January 2019, Jinko IE issued its responses to the NoAs in ARB 374 and ARB 375, disputing the Singapore Customer’s reliance on the arbitration clauses in the 2012 Contract and the 2013 Contract, denying all claims raised by the Singapore Customer, and disputing that the Singapore Customer was entitled to the reliefs claimed in the arbitrations. Arbitration tribunals in both ARB 374 and ARB 375 were constituted on September 5, 2019, which directed on January 14, 2020 that (i) the Singapore Customer shall submit its statement of claim in both ARB 374 and ARB 375 and Jinko IE shall submit its statement of defense no later than five months after Singapore Customer’s submission of statement of claim; and (ii) the hearing of the arbitrations shall be bifurcated with the liability issue to be first determined by the tribunals, and then depending on the outcome of the liability issue, the issue of remedies/damages payable to be determined in the subsequent proceedings in such manner as may be directed by the tribunals. On August 7, 2020, the Singapore Customer submitted its statement of claim in both ARB 374 and ARB 375. In the statement of claim, the Singapore Customer maintained its claim that the photovoltaic solar modules supplied by Jinko IE to them under the 2012 Contract and the 2013 Contract were defective, and that Jinko IE should be liable in respect of all the modules supplied under the 2012 Contract and the 2013 Contract. On December 16, 2020, following Jinko IE’s request, the tribunals in both ARB 374 and ARB 375 directed that Jinko IE’s statement of defense should be submitted by February 11, 2021. On February 11, 2021, Jinko IE submitted its statement of defense and relevant evidence. In the statement of defense, Jinko IE (i) requested the tribunal to declare that it lacks jurisdiction over the dispute; and (ii) denied all the Singapore Customer claims and requested the same be dismissed by the tribunal. On February 22, 2021, upon mutual agreement by Jinko IE and the Singapore Customer, the tribunal directed that ARB 374 and ARB 375 should be consolidated. On August 24, 2021, the tribunal decided Jinko IE and the Singapore Customer’ respective Redfern Schedules. On October 5, 2021, Jinko IE and the Singapore Customer exchanged documents pursuant to the tribunal’s decision on the Redfern Schedules. On February 19, 2022, the Singapore Customer filed its Reply Memorial (accompanied by all evidence, including factual exhibits, written witness statements, expert reports and legal authorities relied upon). On July 17, 2022, Jinko IE submitted its Rejoinder Memorial with all evidence correspondingly in reply to Reply Memorial. From October 10 to 21, 2022, the hearing for liability issue was held in Singapore, during which the tribunal heard the parties’ oral opening statements, evidence from the parties’ factual and expert witnesses, and oral closing statements. According to the tribunal’s directions, the parties submitted Post-hearing Briefs on January 20, 2023 and the Reply Post-hearing Briefs on March 3, 2023. Furthermore, in the event that Jinko IE is found liable on the liability issue, the issue of remedies or damages to be paid will be determined in a subsequent phase in the proceedings, with a separate procedural timeline for the provision of evidence (including expert evidence) and memorials on the appropriate remedy to be awarded by the tribunal. Based on the limited information currently available to the Company, it is difficult to provide an in-depth assessment of the Singapore Customer’s claims. The Company believes that Jinko IE has reasonable grounds to challenge the Singapore Customer’s claims in the arbitrations on jurisdiction and merits and will vigorously defend against the claims made by the Singapore Customer. Information available prior to issuance of the financial statements did not indicate that it is probable that a liability had been incurred at the date of the financial statements and the Company is unable to reasonably estimate the range of any liability or reasonably possible loss, if any. In March 2019, Hanwha Q CELLS (defined below) filed patent infringement lawsuits against the company and a number of the company’s subsidiaries. (i) On March 4, 2019, Hanwha Q CELLS USA Inc. and Hanwha Solutions Corporation (The plaintiff has been changed from Hanwha Q CELLS & Advanced Materials Corporation to Hanwha Solutions Corporation (registration no. 110111-0360935) during the course of the proceedings because of restructuring undertaken by its affiliate(s) in relation to ownership of the patent in suit) (collectively, “Plaintiffs A”) filed suit against JinkoSolar Holding Co., Ltd and several of its subsidiary entities, i.e. JinkoSolar (U.S.) Inc, Jinko Solar (U.S.) Industries Inc, Jinko Solar Co., Ltd, Zhejiang Jinko Solar Co., Ltd and Jinko Solar Technology Sdn.Bhd (collectively “Respondents”) at the U.S. International Trade Commission (“ITC”). In the complaint, it was alleged that certain photovoltaic solar cells and modules containing these solar cells supplied by the Respondents infringed U.S. Patent No. 9,893,215 purportedly owned by Hanwha Q CELLS & Advanced Materials Corporation and Plaintiffs A requested a permanent limited exclusion order and a cease and desist order be issued against the Respondents’ allegedly infringing products. On March 5, 2019, Hanwha Q CELLS & Advanced Materials Corporation filed a suit against the Respondents before the U.S. District Court for the District of Delaware (“District Court”) alleging that certain photovoltaic solar cells and modules containing these solar cells supplied by the Respondents infringed U.S. Patent No. 9,893,215 allegedly owned by Hanwha Q CELLS & Advanced Materials Corporation and sought reliefs including compensation for alleged infringement activities, enhanced damages and reasonable attorney fees. On April 9, 2019, the ITC published the Notice of Institution on Federal Register. On April 15, 2019, the District Court granted our motion to stay the court litigation pending final resolution of the ITC. On May 3, 2019, the Respondents submitted their response to the complaint of Plaintiffs A to the ITC requesting ITC among other things to deny all relief requested by Plaintiffs A. On September 13, 2019, the Respondents filed motion for summary determination of non-infringement with ITC. On April 10, 2020, the administrative law judge issued the initial determination granting the Respondents’ motion for summary determination of non-infringement. On June 3, 2020, the ITC determined to affirm the initial determination issued by the administrative law judge granting respondents’ motions for summary determination of non-infringement and terminate the investigation (the “Final Determination”). On July 31, 2020, Plaintiffs A filed its petition to review with the United States Court of Appeals for the Federal Circuit against the ITC’s Final Determination. On August 27, 2020, the Respondents filed the motion to intervene of such appeal. Plaintiffs A filed its opening appeal brief in November 2020. The Respondents filed the principal brief in February 2021. On July 12, 2021, the United States Court of Appeals for the Federal Circuit affirmed the ITC’s findings that Respondents’ products do not infringe U.S. Patent No. 9,893,215. On June 27, 2022, the District Court entered a joint motion to dismiss the said court litigation. (ii) On March 4, 2019, Hanwha Q CELLS GmbH (“Plaintiff B”), filed a patent infringement claim against JinkoSolar GmbH before the Düsseldorf Regional Court in Germany alleging that certain photovoltaic solar cells and modules containing these solar cells supplied by JinkoSolar GmbH infringed EP2 220 689 purportedly owned by Plaintiff B. On April 10, 2019, JinkoSolar GmbH filed the first brief with the court stating JinkoSolar GmbH would defend itself against the complaint. On September 9, 2019, JinkoSolar GmbH filed its statement of defense with the court (the “Statement of Defense”), requesting that the claim be dismissed and that Plaintiff B to bear the costs of the legal dispute. On March 3, 2020, Plaintiff B filed its reply to the Statement of Defense with the court. On April 20, 2020, JinkoSolar GmbH filed its rejoinder with the court commenting on Plaintiff B’s reply on March 3, 2020. On May 5, 2020, the oral hearing regarding the validity of the EP2 220 689, Plaintiff B’s entitlement to sue, and the infringement was held before the Düsseldorf Regional Court. On June 16, 2020, the Düsseldorf Regional Court sided with Plaintiff B and ordered that the third party cell technology contained in certain modules delivered by JinkoSolar GmbH infringes Plaintiff B’s patent (the “Judgment”). JinkoSolar GmbH filed its notice of appeal on July 14, 2020. On October 16, 2020, JinkoSolar GmbH submitted grounds of appeal to the Düsseldorf Higher Regional Court. On March 1, 2021, JinkoSolar GmbH submitted appeal joinder to the Düsseldorf Higher Regional Court. On September 28, 2020, Plaintiff B has submitted the request for penalty to Düsseldorf Regional Court, claiming that JinkoSolar GmbH violated the Judgment by continuing to promote infringing products and requesting imposition of penalty for such violation. Though not specified in Plaintiff B’s request, in general we do not expect the amount of such penalty to exceed €250,000. On November 30,2020, JinkoSolar GmbH submitted its response to Plaintiff B’s request for penalty. On April 6, 2021, JinkoSolar GmbH submitted its second response to Plaintiff B’s request for penalty. On August 23, 2021, Düsseldorf Regional Court dismissed Plaintiff B’s request for penalty. The oral proceedings at the Düsseldorf Higher Regional Court was held on March 30, 2023. Following this hearing, the Düsseldorf Higher Regional Court decided on 20 April 2023 that evidence should be taken by firstly hearing a witness and subsequently obtaining a written technical opinion from a court appointed expert. The outcome of the case is difficult to assess and predict. However, even if JinkoSolar GmbH failed and was ordered to stop distributing module cells using the third-party cell technology, it would not be subject to additional damages as it has already stopped delivering such module cells. Furthermore, the request for information and damages was withdrawn in the first instance and cannot be reinstalled in the second instance at the court of appeals level. Therefore, there is no danger for payment of damages. As of the date of the issuance of the financial statements, this case is still ongoing and based on the information currently available, the company does not believe that it is probable that JinkoSolar GmbH has incurred a loss and the Company is unable to estimate an amount of reasonably possible loss or range of loss. (iii) On March 12, 2019, Hanwha Solutions Corporation (registration no. 110111-0360935) (The plaintiff has been changed from Hanwha Q CELLS & Advanced Materials Corporation to Hanwha Solutions Corporation during the course of the proceedings because of restructuring undertaken by its affiliate(s) in relation to ownership of the patent in suit) and Hanwha Q CELLS Australia Pty Ltd (“Plaintiffs C”, together with Plaintiffs A and Plaintiff B, “Hanwha Q CELLS Plaintiffs”) filed suit at Federal Court of Australia (“FCA”) against Jinko Solar Australia Holdings Co. Pty Ltd (“Jinko AUS”). It was alleged that certain photovoltaic solar cells and modules containing these solar cells supplied by Jinko AUS infringed Australian Patent No. 2008323025 purportedly owned by Plaintiffs C. The relief sought by Plaintiffs C includes a declaration of infringement, injunctions restraining future acts of commercial exploitation by way of importing, offering to supply and supplying the relevant products; ancillary relief by way of delivery up for destruction of allegedly infringing product and pecuniary remedies by way of damages (including additional damages) or, at Hanwha’s election, an account of profits; and declarations and injunctions based on the misleading or deceptive conduct claim. It is expected that issues relating to pecuniary relief and their quantum will be separated and deferred for determination after the liability hearing. The FCA served Jinko AUS as the Respondent and the first case management hearing was held on April 12, 2019. The FCA heard the application, and made orders for the conduct of the proceeding at the first case management hearing, following which Jinko AUS submitted its defense and cross-claim to Plaintiffs C’s statement of claim on July 22, 2019. Shortly before the second case management hearing which was held on October 2, 2019, Plaintiffs C requested an amendment to Australian Patent No. 2008323025 (“Amendment Application”) on the stated basis of overcoming prior art relevant to validity and it also appeared that one of the amendments sought by Plaintiffs C was with a view to improving its position in relation to Jinko AUS’s defense to infringement. Plaintiffs C’s Amendment Application was opposed by Jinko AUS and the other Australian respondents and FCA directed Plaintiffs C to give discovery and produce documents in respect to the Amendment Application. The third case management hearing was held on December 13, 2019, after which Jinko AUS submitted particulars of opposition to the Amendment Application and requested for further and better discovery in respect to the Amendment Application. As a result, Hanwha subsequently dropped the amendment in relation to Jinko AUS’s defense to infringement and opposition to the remaining Amendment Application continued for some time but was ultimately not pursued by Jinko AUS and the other Australian respondents. The FCA granted Plaintiffs C’s Amendment Application on August 28, 2020. Following the order directed by FCA at the case management hearing held on November 16, 2020, Plaintiffs C’s has filed its infringement statement at FCA on December 17, 2020 and refers to certain testing undertaken in South Korea in 2018 prior to the commencement of the proceeding, and Jinko AUS has filed a precise non-infringement statement identifying the reasons why certain photovoltaic solar cells and modules supplied by Jinko AUS do not infringe Australian Patent No. 2008323025 on March 9, 2021. Since then, the parties have taken the various procedural steps required by the court’s directions in relation to infringement and validity claims and defences. The final was held from September 23 to 30 and October 10 to 14, 2022. As of the date of the issuance of the financial statements, the Judge has reserved its decision and based on the information currently available, there presently remains no indication that it is probable the court will award any liability for infringement against Jinko AUS and the Company is unable to estimate an amount of reasonably possible loss or range of loss. The Company believes that Hanwha Q CELLS Plaintiffs’ claims in all the above-mentioned cases are lacking legal merit, and will vigorously defend against the claims made by them. The Group is considering all legal avenues including challenging the validity of U.S. Patent No. 9,893,215 (“the ‘215 Patent”), EP 2 220 689 and Australian Patent No. 2008323025 (collectively, the “Asserted Patents”), and demonstrating the Company’s non-infringement of the Asserted Patents. On June 3, 2019, the Company filed a petition for inter partes review (“IPR”) of the ‘215 Patent with the U.S. Patent and Trademark Appeal Board (“PTAB”). IPR is a trial proceeding conducted at the PTAB to review the patentability of one or more claims in a patent. On December 10, 2019, the PTAB instituted the IPR proceedings of the patentability of claims 12-14 of the ‘215 patent claims in view of prior art. On September 9, 2020, the Company attended the oral hearing of IPR of the ‘215 patent. On December 9, 2020, the PTAB issued the final decision on the Company’s petition for IPR, finding that all challenged claims 12-14 of the ‘215 patent are unpatentable. On February 8, 2021, the patent owner of ‘215 Patent, Hanwha Solutions Corporation, appealed to the United States Court of Appeals for the Federal Circuit against such final decision issued by the PTAB (“215 IPR Appeal”). On February 24, 2021, the Company has filed the certificate of interest to participate in 215 IPR Appeal. On May 28, 2021, Hanwha Solutions Corporation filed its opening appeal brief. On July 19, 2021, Hanwha Solutions Corporation filed a motion to remand the case to the United States Patent and Trademark Office. On October 4, 2021, the United States Court of Appeals for the Federal Circuit denied Hanwha Solutions Corporation’s motion to remand. On June 10, 2022, the United States Court of Appeals for the Federal Circuit affirmed the said final decision issued by PTAB that all challenged claims 12-14 of the ‘215 patent are unpatentable. On June 24, 2019, Jinko filed with the European Patent Office a Notice of Intervention in the opposition proceeding regarding the validity of the EP 2 220 689. On March 25 and March 26, 2021, the opposition oral hearing regarding the validity of the EP2 220 689 was held before the European Patent Office. During the hearing, the European Patent Office held that the EP2 220 689 was maintained in amended form. An additional hearing was held on September 28 and 29, 2022, during which the opposition division finally decided to uphold the patent with the limited claims and an amended version of the patent description. Currently, the European Patent Office has not yet issued its decision including the grounds in writing. On May 7, 2021, one of the company’s Spanish customers (the “Spanish Customer”) submitted a Request for arbitration at International Chamber of Commerce (Case No. 26251/JPA) against Jiangxi Jinko in connection with dispute arising out of a PV Module Sales Contract entered into in August, 2020 (“Contract”). In the Request, the Spanish Customer’s claims are based on (1) Jiangxi Jinko’s alleged breaches of the Contract by being unable to deliver the goods at the initially agreed shipping dates and price; (2) the subsequent termination of the Contract by the Spanish Customer; (3) alleged replacement purchases the Spanish Customer has made to replace the goods originally ordered from Jiangxi Jinko; and (4) alleged further costs and other indirect damages purportedly incurred by the Spanish Customer as a consequence of Jiangxi Jinko ‘s alleged breaches and relating to the PV plant in Australia for which the goods had been intended. On July 21, 2021, Jiangxi Jinko submitted the Answer to the Request and Counterclaim, denying that the Spanish Customer is entitled to the relief it requests and raising a counterclaim for damages its loss of profit as well as wasted costs expended in reliance on the performance of the Contract. On January 28, 2022, the tribunal confirmed the Terms of Reference and Procedural Order No.1 signed by the Spanish Customer and Jiangxi Jinko, according to which, except any extension granted by the tribunal, (1) the Spanish Customer will submit Statement of Claim before April 6, 2022 and Jiangxi Jinko will submit Statement of Defense and Counterclaim before June 6, 2022, (2) the Spanish Customer will submit Statement of Reply and Defense to Counterclaim before September 6, 2022, Jiangxi Jinko will submit Statement of Rejoinder and Reply on Counterclaim before November 4, 2022 and the Spanish Customer will submit Rejoinder on Counterclaim before December 19,2022, (3) the hearing will be held during the week of April 17, 2023. On April 6, 2022, the Spanish Customer submitted Statement of Claim, which maintained the claims as the Request and additionally claimed the legal interest accrued on the amounts requested. On June 6, 2022, Jiangxi Jinko rejected the claims and brought the counterclaim for the wrongful termination in its submission of Statement of Defense and Counterclaim. On September 6, 2022, the Spanish Customer submitted Statement of Reply and Defense to Counterclaim to maintain its positions. On November 4, 2022, Jiangxi Jinko repeatedly denied the claims and claimed for the damgas in its submission of Statement of Rejoinder and Reply on Counterclaim. On December 19, 2022, the Spanish Customer submitted Rejoinder on Counterclaim. The hearing took place from April 18 to 19, 2023 in Madrid. As of the date of the issuance of the financial statements, this case is still ongoing and based on the information currently available, the company does not believe that it is probable that Jiangxi Jinko has incurred a loss and the Company is unable to estimate an amount of reasonably possible loss or range of loss. On June 17, 2022, one of the company’s Indian customers (the “Indian Customer”) submitted a Request for arbitration at International Chamber of Commerce (Case No. 27085/OSI) against Jiangxi Jinko in connection with dispute arising out of a project module supply agreement entered into in May 2017 (“Supply Agreement”). The Indian Customer further submitted Statement of Claim on December 9, 2022, in which the Indian Customer confirmed it does not pursue its claims requiring Jiangxi Jinko to repair or replace relevant modules under the warranty certificate and amended the amount of damages as follows: (i) delay Liquidated Damages in the amount of US$363.3 million; (ii) costs arising from or in connection with the construction / installation of 32MW of additional capacity for the purpose of making up alleged shortfall in the performance of the plant due to allegedly deficient and/or defective modules in the amount of US$14.1 million; and (iii) liquidated damages levied against the EPC Contractor by the owner of the plant in the amount of US$14.6 million, together totalling US$392.0 million. Jiangxi Jinko submited Statement of Defence and Counterclaim on March 10, 2023, strongly defending itself and claiming that the Indian Customer failed to pay the invoices amounting to US$5.3 million According to the current schedule of the arbitration procedure, the International Chamber of Commerce is expected to render the final award by July 30, 2024. As of the date of this annual report, the hearing has not yet commenced. As this case is still ongoing and based on the information currently available to us, it is uncertain at this stage of the arbitration to conclude that whether Jiangxi Jingko will have be subject to any liability or to reasonably estimate the possible amount to be awarded. Information available prior to issuance of the financial statements did not indicate that it is probable that a liability had been incurred at the date of the financial statements and the Company was also unable to reasonably estimate the range of any liability or reasonably possible loss, if any. (c) Guarantees The Company provided the loan guarantee to JinkoPower. In the year of 2022, the Group and JinkoPower entered into an agreement to cancel the guarantee arrangement. (Note 26). |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2022 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 29. FAIR VALUE MEASUREMENTS A hierarchy is established for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability, developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. As such, fair value is a market-based measure considered from the perspective of a market participant who holds the asset or owes the liability rather than an entity-specific measure. The hierarchy is broken down into three levels based on the reliability of inputs as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs other than the quoted price in active markets that are observable either directly or indirectly, or quoted prices in less active markets; and (Level 3) unobservable inputs with respect to which there is little or no market data, which require the Company to develop its own assumptions. Fair value of cash equivalents, restricted cash and restricted short-term investment are categorized as level 1 under the fair value hierarchy, as they based on quoted prices in active markets. Short-term borrowings and long-term borrowing are categorized as level 2 under the fair value hierarchy, as they based on quoted prices in less active markets. Fair value change in forward contracts and foreign exchange options The Company has entered into foreign exchange forward contracts with local banks to reduce the exposure of significant changes in exchange rates between Renminbi and foreign currencies. Authoritative guidance requires companies to recognize all of the derivative financial instruments as either assets or liabilities at fair value in the consolidated balance sheets based upon quoted market prices for comparable instruments. The Company’s forward contracts have not met the criteria for hedge accounting within authoritative guidance. Therefore, the foreign exchange forward contracts have been recorded at fair value, with the gain or loss on these transactions recorded in the consolidated statements of operations within “Change in fair value of foreign exchange forward contracts” in the period in which they occur. The Company does not use derivative financial instruments for trading or speculative purposes. The Company held foreign exchange forward contracts with a total notional value of USD 630 million and USD560 million, EUR20 million and EUR250 million, nil and JYP2,000 million as of December 31, 2021 and 2022, respectively. These foreign exchange forward contracts mature within 12 months. The Company used a discounted cash-flow methodology to measure fair value, which requires inputs such as interest yield curves and foreign exchange rates. The significant inputs used in the aforementioned model can be corroborated with market observable data and therefore the fair value measurements are classified as level 2. Typically, any losses or gains on the forward exchange contracts are offset by re-measurement losses or gains on the underlying balances denominated in non-functional currencies. The Company’s foreign currency exchange contract is an over-the-counter instrument. The Company recorded loss from change in fair value of foreign exchange forward contracts of RMB164 million during the year of 2022, compared to gain of RMB289 million in the year of 2021. The change was primarily due to the appreciation of the U.S. dollars against the RMB during the year of 2022. The Group classified the cash flows related to realized gain or loss on settlement of foreign exchange forward contracts as operating activities, which are based on the nature of the cash flows the derivative is economically hedging. The Company entered into USD foreign exchange option contracts with a total notional value of nil, USD120 million and USD65 million, and sold USD foreign exchange option contracts with a total notional value of USD170 million, USD90 million and USD50 million during the years ended December 31, 2020, 2021 and 2022, respectively. In the year of 2022, the Company entered into EUR foreign exchange option contracts with a total notional value of EUR50 million and sold EUR foreign exchange option contracts with a total notional value of EUR50 million. These foreign exchange options mature within 12 months. The Company adopted the Black-Scholes Option Pricing (“B-S”) Model to value the foreign exchange options. The significant inputs used in the aforementioned model are unobservable inputs which there are little or no market data and therefore the fair value measurements are classified as level 3. The foreign exchange option is asset derivatives which need to be fair valued on day one and marked to market subsequently at each reporting period end. The fair value gain or loss arising from the re-measurement is recognized in the consolidated statements of operations and comprehensive income. The fair value change was a loss of RMB4 million, a gain of RMB19 million and a loss of RMB 4 million for the year ended December 31, 2020, 2021 and 2022, respectively. Equity securities applying fair value option The fair value of equity securities applying fair value option is measured using Level 2 inputs within the fair value hierarchy. In determining the fair value, the Company adopted previous transaction method under market approach, which allows an entity to solve for its implied aggregate equity value by considering its recent arm’s length equity transactions. The Group irrevocably elected fair value option to initially and subsequently measure its investment in Xiangbang in its entirety at fair value with changes in fair value recognized in earnings, and recorded change in fair value with the amount of RMB Available-for-sale securities The Group’s available-for-sale securities represent the two Convertible Senior Notes and Call Option The Company has adopted valuation models to assess the fair value for Call option and the Notes, as the Call option is not publicly traded and the trading of the Notes is considered inactive. Management is responsible for determining these fair values and assessing a number of factors. The Notes is valued using the Binominal Tree option pricing model. The valuation involves complex and subjective judgments as well as the Company’s best estimates on the valuation date. Inputs related to the Binomial models for convertible debt fair value are: spot price, conversion price, expected dividend yield, expected share volatility, risk free interest rate, and yield-to-maturity, of which spot price and expected share volatility are most significant to valuation determination of convertible debt. The Call option is valued using the Black-Scholes Model. The valuation involves complex and subjective judgments as well as the Company’s best estimates on the valuation date. Inputs related to the Black-Scholes Models for call option fair value are: call option price, spot price, exercise price, expected dividend yield, risk-free interest rate and time to maturity, of which spot price and exercise price are most significant to valuation determination of call option. The Company recorded loss from change in fair value of convertible senior notes and call option of RMB12 million during the year of 2022, compared to gain from change in fair value of convertible senior notes and call option of RMB192 million during the year of 2021. Interest Rate Swap The Company’s exposure to the risk of changes in market interest rates primarily relates to its bank borrowings. To finance its overseas power station business operation and expansion, the Company’s operating subsidiaries located in Mexico obtained long-term bank borrowings from local bank, which carries variable interest rates. With an aim to reduce its interest rate exposure, the Company entered into one long-term interest rate swap contract in 2016 to fix the interest rate as a fixed rate payer. The interest rate swap is a derivative which needs to be fair valued at each reporting period end. The fair value gain or loss arising from the measurement is recognized in the consolidated statements of operations. The fair value change was a loss of RMB79 million for the years ended December 31, 2020. The Company sold its solar power plants in Mexico in March 2020. The Company solar project subsidiary located in Argentina entered into interest rate swap contracts to swap floating interest payments related to certain borrowings for fixed interest payments to hedge the interest rate risk associated with certain forecasted payments and obligations. As the interest rate derivatives were designated as cash flow hedges and the hedge is highly effective, all changes in the fair value of the derivative hedging instruments amounted to RMB12 million were recorded in other comprehensive income and as a derivative liability included in the held-for-sale liabilities as of December 31, 2021. The Company sold its solar power plants in Argentina in June 2022. Guarantee liability A guarantee liability is initially recognized at the estimated fair value in the Group’s consolidated balance sheets unless it becomes probable that the Group will reimburse the holder of the guarantee for an amount higher than the carrying amount, in which case the guarantee is carried in the Group’s consolidated balance sheets at the expected amount payable to the holder. The fair value of the guarantee liability is measured by the total consideration to be received in connection with the provision of guarantee. The guarantee liability would be amortized in straight line during the guarantee period. The guarantee arrangement was canceld in year 2022. Recurring change in fair value As of December 31, 2021 and 2022, information about the hierarchy of the fair value measurements for the Company’s assets and liabilities that are measured at fair value on a recurring basis subsequent to their initial recognition is as follows (RMB in thousands, except for inputs): Fair Value Measurements at Reporting Date Using Quote prices in Balance as of active market Significant other Significant December 31, for identical observable unobservable Description 2021 assets (Level 1) inputs (Level 2) inputs (Level 3) Assets: Foreign exchange forward contracts- receivable 73,532 — 73,532 — Liabilities: Convertible senior notes 1,098,736 — — 1,098,736 Guarantee liabilities 12,142 — — 12,142 Derivative liability interest rate swap 12,294 — — 12,294 Foreign exchange options 2,659 — — 2,659 Fair Value Measurements at Reporting Date Using Quote prices in Balance as of active market Significant other Significant December 31, for identical observable unobservable Description 2022 assets (Level 1) inputs (Level 2) inputs (Level 3) Assets: Foreign exchange forward contracts- receivable 119,625 — 119,625 — Equity securities applying fair value option 178,871 — 178,871 — Available-for-sale securities 104,499 — — 104,499 Liabilities: Convertible senior notes 1,070,699 — — 1,070,699 Foreign exchange forward contracts- payable 59,911 — 59,911 — Foreign exchange options 3,226 — — 3,226 Assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3 valuation) A summary of changes in Level 3 fair value of convertible senior notes for the year ended December 31, 2020, 2021 and 2022 were as follows (RMB in thousands): For the year ended December 31, 2020 2021 2022 RMB RMB RMB Balance on January 1, 728,216 1,831,612 1,098,736 Foreign exchange loss/(gain) (38,360) (8,560) 60,038 Change in fair value of convertible senior notes loss/(gain) 1,202,082 (327,762) 12,083 Change in the instrument-specific credit risk gain (60,326) (56,224) (100,158) Conversion of convertible senior notes — (340,330) — Balance on December 31, 1,831,612 1,098,736 1,070,699 A summary of changes in Level 3 fair value of available-for-sale securities for the year ended December 31, 2020, 2021 and 2022 were as follows (RMB in thousands): For the year ended December 31, 2020 2021 2022 RMB RMB RMB Balance on January 1, — — — Addition — — 100,000 Interest accrual — — 3,526 Change in fair value — — 973 Balance on December 31, — — 104,499 A summary of changes in Level 3 fair value of call option for the year ended December 31, 2020, 2021 and 2022 were as follows (RMB in thousands): For the year ended December 31, 2020 2021 2022 RMB RMB RMB Balance on January 1, 294,178 756,929 — Issuance of call options — — — Foreign exchange gain/(loss) (13,539) 251 — Change in fair value of call options gain/(loss) 476,290 (136,121) — Settlement of call options — (621,059) — Balance on December 31, 756,929 — — A summary of changes in Level 3 fair value of foreign exchange options for the year ended December 31, 2020, 2021 and 2022 were as follows (RMB in thousands): For the year ended December 31, 2020 2021 2022 RMB RMB RMB Balance on January 1, — (12,924) (2,659) Addition of foreign exchange options (9,316) (8,544) 3,596 Change in fair value of foreign exchange options gain/(loss) (3,608) 18,809 (4,163) Balance on December 31, (12,924) (2,659) (3,226) A summary of changes in Level 3 fair value of rate swap derivative for the year ended December 31, 2020, 2021 and 2022 were as follows (RMB in thousands): For the year ended December 31, 2020 2021 2022 RMB RMB RMB Balance on January 1, 61,272 — 12,294 Change in fair value of interest rate swap 78,878 — — Change in fair value of interest rate swap cash flow hedges — 12,294 — Cash settlement (140,150) — (12,294) Balance on December 31, — 12,294 — A summary of changes in Level 3 fair value of guarantee liabilities for the year ended December 31, 2020, 2021 and 2022 were as follows (RMB in thousands): For the year ended December 31, 2020 2021 2022 RMB RMB RMB Balance on January 1, 72,019 57,332 12,142 Additions — — — Amortization (14,687) (6,365) — Cancellation — (38,825) (12,142) Balance on December 31, 57,332 12,142 — Change in fair value of derivatives The Change in fair value of derivatives recognized in earnings was as follows (RMB in thousands): Foreign exchange forward Type of derivatives For the year ended contracts Convertible Interest Call Foreign exchange Equity securities December 31, Realized Unrealized senior notes Rate swap Option Options Applying fair value option Total In RMB 2020 61,380 129,806 (1,202,082) (78,878) 476,290 (3,608) — (617,092) 2021 393,523 (104,643) 327,762 — (136,121) 18,809 — 499,330 2022 (150,538) (13,818) (12,083) — — (4,163) 101,871 (78,731) Significant unobservable inputs The significant unobservable inputs adopted in the valuation of Level 3 instruments as of December 31, 2022 are as follows: Unobservable inputs of convertible senior notes Expected volatility 75.47 % Risk free interest rate 4.6 % Discount rate 29.23 % Unobservable inputs of available-for-sale securities Risk free interest rate 2.06% - 2.21% Discount rate 5.37% - 5.78% Unobservable inputs of foreign exchange option Expected volatility 8.13% - 10.00 % Risk free interest rate 1.09% - 2.03 % |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
RESTRICTED NET ASSETS. | |
RESTRICTED NET ASSETS | 30. RESTRICTED NET ASSETS Relevant PRC laws and regulations permit payments of dividends by the Company’s PRC subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC GAAP. In addition, the statutory general reserve fund requires annual appropriations of 10% of net after-tax income to be set aside prior to payment of any dividends by the Company’s PRC subsidiaries that are registered as wholly owned foreign investment enterprises or domestic enterprises. As a result of these and other restrictions under PRC laws and regulations, the PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company either in the form of dividends, loans or advances. Even though the Company does not currently require any such dividends, loans or advances from the Company’s PRC subsidiaries for working capital or other funding purposes, it may in the future require additional cash resources from the PRC subsidiaries due to changes in business conditions, to fund future acquisitions and development, or merely declare dividends or make distributions to the Company’s shareholders. Restricted net assets were RMB24,303 million representing 90% of the Company’s total consolidated net assets as of December 31, 2022. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 31. SUBSEQUENT EVENTS The Group adopted its 2023 Equity Incentive Plan on January 5, 2023 which provided for the issuance of option, restricted share or other share-based award of 20,800,000 ordinary shares. On April 23, 2023, Jiangxi Jinko completed the registration process with the China Securities Regulatory Commission (“CSRC”) for the issuance of convertible bonds in the principal amount of up to RMB10.00 billion (US$1.45 billion). Such convertible bonds, which will be listed on the STAR Market, have a term of six years and are convertible into Jiangxi Jinko’s ordinary shares. The Company has the special preemptive rights to subscribe for a portion of the convertible bonds. |
ADDITIONAL INFORMATION-CONDENSE
ADDITIONAL INFORMATION-CONDENSED FINANCIAL STATEMENTS OF THE PARENT COMPANY | 12 Months Ended |
Dec. 31, 2022 | |
ADDITIONAL INFORMATION-CONDENSED FINANCIAL STATEMENTS OF THE PARENT | |
ADDITIONAL INFORMATION-CONDENSED FINANCIAL STATEMENTS OF THE PARENT COMPANY | 32. ADDITIONAL INFORMATION – CONDENSED FINANCIAL STATEMENTS OF THE PARENT COMPANY The separate condensed financial statements of the Company as presented below have been prepared in accordance with Securities and Exchange Commission Regulation S-X Rule 5-04 and Rule 12-04 and present the Company’s investments in its subsidiaries under the equity method of accounting. Such investment is presented on separate condensed balance sheets of the Company as “Investments in subsidiaries “ and the Company’s shares of the profit or loss of subsidiaries are presented as “Share of (loss) / income from subsidiaries” in the statements of operations. Certain information and footnote disclosures normally included in financial statements prepared in accordance with US GAAP have been condensed and omitted. The footnote disclosures contain supplemental information relating to the operations of the Company, as such, these statements should be read in conjunction with the notes to the consolidated financial statements of the Company. For the year ended December 31 2020 2021 2022 RMB RMB RMB USD (note 2 (al)) (RMB in thousands) Net revenue — — — — Cost of revenues — — — — Gross profit — — — — Total operating income/(expenses) 1,227 (6,150) (593,204) (86,007) Other income, net 5,064 1,737 — — Income/(loss) from operations 6,291 (4,413) (593,204) (86,007) Share of income from subsidiaries and affiliates 1,015,006 512,873 1,264,720 183,368 Interest income/(expenses), net 8,596 36,613 (19,867) (2,880) Exchange loss (73,716) (14,085) (18,586) (2,694) Change in fair value of convertible senior notes and call option (725,792) 191,641 (12,083) (1,752) Income before income taxes 230,385 722,629 620,980 90,035 Income tax expenses — (1,611) (474) (69) Net income attributable to JinkoSolar Holding Co., Ltd.’s ordinary shareholders 230,385 721,018 620,506 89,966 Condensed balance sheets: December 31, 2021 December 31, 2022 RMB RMB USD (note 2 (al)) (RMB in thousands) ASSETS Current assets: Cash and cash equivalent 34,767 492,440 71,397 Due from subsidiaries 2,532,984 728,019 105,553 Due from related parties 3,454 3,454 501 Other current assets 1,562 1,671 242 Total current assets 2,572,767 1,225,584 177,693 Investments in subsidiaries 9,781,036 16,189,323 2,347,231 Due from subsidiaries – non-current 1,262,124 — — Due from related parties - non current 3,292 — — Total assets 13,619,219 17,414,907 2,524,924 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Due to subsidiaries 1,445,183 — — Due to related parties 2,500 — — Other current liabilities 13,377 6,973 1,011 Total current liabilities 1,461,060 6,973 1,011 Due to related parties – non-current 9,642 — — Convertible senior notes 1,098,736 1,070,699 155,237 Total liabilities 2,569,438 1,077,672 156,248 Shareholders’ equity: Ordinary shares (USD $0.00002 par value, 500,000,000 shares authorized, 193,770,753 and 204,135,029 shares issued as of December 31, 2021 and December 31, 2022, respectively, 190,824,913 and 201,189,189 shares outstanding as of December 31, 2021 and December 31, 2022, respectively) 26 28 4 Additional paid-in capital 5,617,923 9,912,931 1,437,240 Accumulated other comprehensive loss (154,375) 217,563 31,544 Treasury stock, at cost; 2,945,840 ordinary shares as of December 31, 2021 and December 31, 2022 (43,170) (43,170) (6,259) Retained earnings 5,629,377 6,249,883 906,148 Total shareholders’ equity 11,049,781 16,337,235 2,368,677 Total liabilities and shareholders’ equity 13,619,219 17,414,907 2,524,924 The current balances of due from subsidiaries represented loans to its subsidiaries which are expected to be collected within twelve months. Non-current balances due from subsidiaries represented loans to its subsidiaries which are not expected to be collected with twelve months. Other current liabilities represented accrual for unpaid convertible senior notes interest and professional service fees. Condensed statements of cash flows: For the year ended December 31, 2020 2021 2022 RMB RMB RMB USD (note 2 (al)) (RMB in thousands) Cash flows from operating activities: Net income 230,385 721,018 620,506 89,966 Adjustments to reconcile net income to net cash used in operating activities: Sharebase compensation charges — — 579,368 84,000 Change in fair value of convertible senior notes 1,202,082 (327,762) 12,083 1,752 Change in fair value of call option (476,290) 136,121 — — Share of income from subsidiaries (1,015,006) (512,873) (1,264,720) (183,368) Guarantee income (5,064) — — — Exchange loss 73,716 14,085 18,586 2,694 Changes in operating assets and liabilities: Decrease in due from subsidiaries 592,425 6,088 1,465,778 212,518 Decrease in due from a related party — — 3,292 477 (Increase)/decrease in other current assets (9,437) 165 (1,279) (186) Decrease in other non-current assets — 11,181 — — Decrease in due to subsidiaries (658,106) (117) (1,445,183) (209,532) Decrease in due to a related party — — (12,142) (1,760) Increase/(decrease) in other current liabilities 9,773 1,978 (6,403) (928) Net cash (used in)/provided by operating activities (55,522) 49,884 (30,114) (4,367) Cash flows from investing activities: Cash collection for loans from subsidiaries — — 735,673 106,662 Cash paid for loans to subsidiaries — (1,262,124) (289,620) (41,991) Net cash used in investing activities — (1,262,124) 446,053 64,671 Cash flows from financing activities: Proceeds from exercise of share options 114,758 10,185 5,024 729 Proceeds from exercise of call option — 621,059 — — Proceeds from issuance of ordinary shares — 641,065 — — Repurchase of shares (29,294) — — — Net cash provided by financing activities 85,464 1,272,309 5,024 729 Effect of foreign exchange rate changes on cash and cash equivalents (14,992) (44,809) 36,710 5,323 Net increase in cash and cash equivalents 14,950 15,260 457,673 66,356 Cash and cash equivalents, beginning of year 4,557 19,507 34,767 5,041 Cash and cash equivalents, end of year 19,507 34,767 492,440 71,397 Supplemental disclosure of non-cash investing and financing cash flow information Proceeds from exercise of share options received in subsequent period 9,143 1,169 — — Conversion of convertible senior notes to ordinary shares — 340,330 — — Transfer receivable due from subsidiaries to investments in subsidiaries — — 1,160,000 168,184 Receivables related to At-The-Market offering 641,065 — — — For the years ended December 31, 2020, 2021 and 2022 and up to the date of this annual report, no cash dividend was paid to the Company by its consolidated subsidiaries, unconsolidated subsidiaries, nor 50% or less owned persons accounted for by the equity method. |
PRINCIPAL ACCOUNTING POLICIES (
PRINCIPAL ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
PRINCIPAL ACCOUNTING POLICIES | |
Basis of presentation and use of estimates | a. Basis of presentation and use of estimates The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of consolidated financial statements in conformity with U.S. GAAP requires management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Group bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Significant accounting estimates reflected in the Company’s consolidated financial statements include expected credit loss provision, provision for inventories, impairment of long-lived assets, the economic useful lives of property, plant and equipment, project assets and intangible assets, certain accrued liabilities including accruals for warranty costs, guarantees, sale-leaseback, accounting for share-based compensation, fair value measurements of share-based compensation and financial instruments, legal contingencies, income taxes and related deferred tax valuation allowance. |
Consolidation | b. Consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. For the Group’s majority-owned subsidiaries, non-controlling interests is recognized to reflect the portion of their equity interests which are not attributable, directly or indirectly, to the Group. Consolidated net income on the consolidated statement of operation includes the net income attributable to non-controlling interests. The cumulative results of operations attributable to non-controlling interests are recorded as non-controlling interests in the Group’s consolidated balance sheets. Cash flows related to transactions with non-controlling interests are presented under financing activities in the consolidated statements of cash flows. |
Foreign currency translation | c. Foreign currency translation The Group’s reporting currency is the Renminbi (“RMB”), the official currency in the PRC. The Company and its PRC subsidiaries use RMB as their functional currency, while local currencies have been determined to be the functional currency of its subsidiaries incorporated outside of PRC such as USD or EUR etc. Transactions denominated in currencies other than the functional currency are translated into the functional currency of the entity at the exchange rates prevailing at the dates of the transactions. Gains and losses resulting from foreign currency transactions are included in the consolidated statements of operations. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency of the entity using the applicable exchange rates at the applicable balance sheet dates. All such exchange gains or losses are included in exchange loss in the consolidated statements of operations. For consolidation purpose, the financial statements of the Company’s subsidiaries whose functional currencies are other than the RMB are translated into RMB using exchange rates quoted by PBOC. Assets and liabilities are translated at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and revenues, expenses and gains and losses are translated using the average exchange rates for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of in accumulated other comprehensive income in the consolidated statement of comprehensive income/ (loss). The RMB is not a freely convertible currency. The PRC State Administration for Foreign Exchange, under the authority of PBOC, controls the conversion of RMB into foreign currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in China’s foreign exchange trading system market. The Company’s aggregate amount of cash, cash equivalents, restricted short-term investments and restricted cash denominated in RMB amounted to RMB16,672 million and RMB 14,243 million as of December 31, 2021 and 2022, respectively. |
Cash, cash equivalents and restricted cash | d. Cash, cash equivalents and restricted cash Cash and cash equivalents represent cash on hand and demand deposits placed with banks or other financial institutions, which have original maturities of three months or less. Restricted cash represents deposits legally held by banks which are not available for the Group’s general use. These deposits are held as collateral for issuance of letters of credit or guarantee, bank acceptance notes to vendors for purchase of machinery and inventories and foreign exchange forward contracts. Cash, cash equivalents and restricted cash as reported in the consolidated statement of cash flows are presented separately As of December 31, 2021 2022 RMB RMB Cash and cash equivalents 8,321,415 10,243,500 Restricted cash 602,044 1,027,454 Cash and cash equivalents included in held-for-sale assets (note 2 (n)) 173,787 — Total 9,097,246 11,270,954 |
Restricted short-term investments | e. Restricted short-term investments Restricted short-term investments represent the time deposits at banks with original maturities longer than three months and less than one year, which are held as collateral for issuance of letters of credit, guarantee, bank acceptance notes or deposits for short-term borrowings. |
Notes receivable and payable | f. Notes receivable and payable Notes receivable represents bank or commercial drafts that have been arranged with third-party financial institutions by certain customers to settle their purchases from the Group. The carrying amount of notes receivable approximate their fair values due to the short-term maturity of the notes receivables. The Group also issues bank acceptance notes to its suppliers in China in the normal course of business. The Group classifies the changes in notes payable as financing activities. Notes receivable and payable are typically non-interest bearing and have maturities of less than six months. |
Derivative Instruments | g. Derivative Instruments Derivative instruments are carried at fair value. The fair values of the derivative financial instruments generally represent the estimated amounts expect to receive or pay upon termination of the contracts as of the reporting date. The Company’s derivative instruments primarily consisted of foreign currency forward contracts and foreign exchange options which are used to economically hedge certain foreign denominated assets/liabilities and reduce, to the extent practicable, the potential exposure to the changes that exchange rates might have on the Company’s earnings, cash flows and financial position. As the derivative instruments do not qualify for hedge accounting treatment, changes in the fair value are reflected in “change in fair value of foreign exchange forward contracts” and “change in fair value of foreign exchange options” of the consolidated statements of operations. The Company’s solar project subsidiaries located in Mexico obtained long-term bank borrowings from local bank, which carries variable interest rates. With an aim to reduce its interest rate exposure, the Company entered into long-term interest rate swap contracts to fix the interest rate as a fixed rate payer. The interest rate swap is a derivative which needs to be fair valued at each reporting period end. As the derivative instrument does not qualify for hedge accounting treatment, the fair value gain or loss arising from the measurement is recognized in the consolidated statements of operations. The Company sold its solar power plants in Mexico in March 2020. The Company’s solar project subsidiary located in Argentina entered into an interest rate swap contract to swap floating interest payments related to certain borrowings for fixed interest payments to hedge the interest rate risk associated with certain forecasted payments and obligations. As the interest rate derivative is designated as cash flow hedge and the hedge is highly effective, all changes in the fair value of the derivative hedging instruments are recorded in other comprehensive income. The Company sold its solar power plants in Argentina in June 2022. |
Current expected credit losses | h. Current expected credit losses In 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASC Topic 326”), which amends previously issued guidance regarding the impairment of financial instruments by creating an impairment model that is based on expected losses rather than incurred losses. The Company adopted this ASC Topic 326 and several associated ASUs on January 1, 2020 using a modified retrospective approach with a cumulative effect recorded as increase of accumulated retained earnings with amount of RMB7 million, among which RMB31 million was related to the decrease of allowance for accounts receivables-third parties, RMB15 million was related to the increase of allowance for accounts receivables- related parties and RMB9 million was related to the increase of allowance for other receivables and other current/non-current assets. As of January 1, 2020, upon the adoption, the expected credit loss provision for the current and non-current assets were RMB307 million and RMB5 million, respectively. The Company’s trade receivable, notes receivable, guarantee receivables, deposits and other receivables are within the scope of ASC Topic 326. The allowance is management’s estimate of expected credit losses on receivables. The Company estimated the allowance by segmenting receivables into groups based on certain credit risk characteristics, including geographic region and industry. The Company determined an expected loss rate for each group based on the historical credit loss experience, current and future economic conditions, and lifetime for debt recovery. For the year ended December 31, 2020, the Company recorded RMB14 million expected credit loss expense in general and administrative expenses. As of December 31, 2020, the expected credit loss provision for the current and non-current assets were RMB324 million and RMB2 million, respectively. For the year ended December 31, 2021, the Company recorded RMB82 million expected credit loss expense in general and administrative expenses. As of December 31, 2021, the expected credit loss provision for the current and non-current assets were RMB331 million and RMB4 million, respectively. For the year ended December 31, 2022, the Company recorded RMB285 million expected credit loss expense in general and administrative expenses. As of December 31, 2022, the expected credit loss provision for the current and non-current assets were RMB600 million and RMB2 million, respectively. |
Accounts receivable | i. Accounts receivable Specific provisions are made against accounts receivable for estimated losses resulting from the inability of the Group’s customers to make payments. The Group periodically assesses accounts receivable balances to determine whether an allowance for credit losses should be made based upon historical bad debts, specific customer creditworthiness and current economic trends. Accounts receivable in the balance sheets are stated net of such provision, if any. Before approving sales to each customer, the Group conducts a credit assessment for each customer to evaluate the collectability of such sales. The assessment usually takes into consideration the credit worthiness of such customer and its guarantor, if any, the Group’s historical payment experience with such customer, industry-wide trends with respect to credit terms, including the terms offered by competitors, and the macro-economic conditions of the region to which sales will be made. The Group executes a sales order with a customer and arrange for shipment only if its credit assessment concludes that the collectability with such customer is probable. The Group may also from time to time require security deposits from certain customers to minimize its credit risk. After the sales are made, the Group closely monitors the credit situation of each customer on an on-going basis for any subsequent change in its financial position, business development and credit rating, and evaluates whether any of such adverse change warrants further action to be taken by the Group, including asserting claims and/or initiating legal proceedings against the customer and/or its guarantor, as well as making provisions. It is also the Group’s general practice to suspend further sales to any customer with significant overdue balances. The Group adopted ASC 326 on January 1, 2020 and has also made updates to its policies and internal controls over financial reporting as a result of adoption. Details please refer to Note 2 (h) above. |
Advances to suppliers | j. Advances to suppliers The Group provides short-term and long-term advances to secure its raw material needs, which are then offset against future purchases. The Group continually assesses the credit quality of its suppliers and the factors that affect the credit risk. If there is deterioration in the creditworthiness of its suppliers, the Group will seek to recover its advances to suppliers and provide for losses on advances which are akin to receivables in operating expenses because of suppliers’ inability to return its advances. Recoveries of the allowance for advances to supplier are recognized when they are received. The Company classified short-term and long-term advances to suppliers based on management’s best estimate of the expected purchase in the next twelve-months as of the balance sheet date and the Group’s ability to make requisite purchases under existing supply contracts. The balances expected to be utilized outside of the 12 months are recorded in advances to suppliers to be utilized beyond one year. No provision of advance to suppliers was recorded for the years ended December 31, 2020, 2021 and 2022. |
Inventories | k. Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined using the weighted average method. Provisions are made for excessive, slow moving and obsolete inventories as well as for inventories with carrying values in excess of market. Certain factors could impact the realizable value of inventory, so the Group continually evaluates the recoverability based on assumptions about customer demand and market conditions. The evaluation may take into consideration historical usage, expected demand, anticipated sales price, new product development schedules, the effect new products might have on the sale of existing products, product obsolescence, customer concentrations, and other factors. The reserve or write-down is equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory reserves or write-downs may be required that could negatively impact the Group’s gross margin and operating results. If actual market conditions are more favorable, the Group may have higher gross margin when products that have been previously reserved or written down are eventually sold. The sale of previously reserved inventory did not have a material impact on our gross margin percentage for any of the years presented. In addition, the Group analyzes its firm purchase commitments, if any, at each period end. Provision is made in the current period if the net realizable value after considering estimated costs to convert polysilicon into saleable finished goods is higher than market selling price of finished goods as of the end of a reporting period. There was no provision recorded related to these long-term contracts for each of the three years ended December 31, 2020, 2021 and 2022. |
Property, plant and equipment, net | l. Property, plant and equipment, net Property, plant and equipment are stated at cost less accumulated depreciation. Cost includes the prices paid to acquire or construct the assets, interest capitalized during the construction period and any expenditure that substantially extends the useful life of an existing asset. Depreciation is computed using the straight-line method over the following estimated useful lives (RMB in thousands): Buildings 20 years Machinery and equipment 5~10 years Furniture, fixture and office equipment 3~5 years Motor vehicles 4~5 years Construction in progress primarily represents the construction of new production line and buildings. Costs incurred in the construction are capitalized and transferred to property, plant and equipment upon completion, at which time depreciation commences. Expenditures for repairs and maintenance are expensed as incurred. The gain or loss on disposal of property, plant and equipment, if any, is the difference between the net sales proceeds and the carrying amount of the disposed assets, and is recognized in the consolidated statement of operations upon disposal. |
Project Assets, net | m. Project Assets, net Project assets represented the costs of solar power plants held for generation of electricity revenue, held with the intention to sell to third parties and solar power plants under construction. Project assets are stated in the consolidated balance sheets at cost less accumulated depreciation and impairment provision, if any. Costs of project assets consist primarily of costs relating to construction of solar power plants at various stages of development. These costs include costs for procurement of solar module and other equipment (including intercompany purchases), cost of land on which solar power plants are developed and other direct costs for developing and constructing solar power plants, such as costs for obtaining permits required for solar power plants and costs for designing, engineering, interest costs capitalized and installation in the course of construction. Such costs are capitalized starting from the point when it is determined that development of the solar power plant is probable. For a solar power project asset acquired from third parties, the initial cost is the acquisition cost which includes the consideration transferred and certain direct acquisition costs. During the year of 2020, the Group recorded full impairments of RMB94 million against its remaining solar power project in Mexico based on the Company’s estimation that it is unable to complete the grid connection before the due date of the purchase agreement with Federal Electricity Commission of Mexico. During the year of 2021, the Group recorded impairments of RMB123 million against its solar power project in Argentina which was measured based on the excess of the carrying amount over the fair value of the solar power project according to the quoted market price. Costs capitalized in the construction of solar power plants under development will be transferred to completed solar power plants upon completion and when they are ready for intended use, which is at the point of time when the solar power plant is connected to grids and begins to generate electricity. Depreciation of the completed solar power plant held for generation of electricity revenue commences once the solar power plant is ready for intended use. Depreciation is computed using the straight-line method over the expected life of 20 years. Depreciation expenses of solar power plants were RMB53 million, RMB33 million and nil for the years ended December 31, 2020, 2021 and 2022. The Company does not depreciate project assets when such project assets are constructed for sale upon completion. Any revenue generated from such project assets connected to the grid would be considered incidental revenue and accounted for as a reduction of the capitalized project costs for development. During the years of 2020, 2021 and 2022, electricity revenue generated from certain overseas project assets constructed for sale upon completion, with the amount of RMB8 million, nil and RMB47 million was considered as incidental revenue and accounted for as a reduction of the capitalized project costs for development. |
Assets held for sale | n. Assets held for sale Long-lived assets to be sold are classified as held for sale when the following recognition criteria in ASC 360-10-45-9 are met: ¨ Management, having the authority to approve the action, commits to a plan to sell the asset. ¨ The asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets. ¨ An active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated. ¨ The sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one year, ¨ The asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value. ¨ Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Group entered into an agreement to sell its solar power plant located in Argentina to JinkoPower in December 2021. Assets and liabilities related to the solar power plant were reclassified from project assets to assets/liabilities held for sale as of December 31, 2021. The Group sold its solar power plants in Argentina in June 2022. The Group entered into a share purchase agreement to dispose all of its equity interest in Jiangsu Jinko-Tiansheng Co., Ltd. (“Jinko-Tiansheng”) to the Jinko-Tiansheng’s other shareholders in November 2021. The Group’s investment in Jinko-Tiansheng was reclassified from investments in affiliates to held for sale assets as of December 31, 2021. |
Interest Capitalization | o. Interest Capitalization Interest expenses during the years ended December 31, 2020, 2021 and 2022 were RMB705 million, RMB879 million and RMB1,150 million, net of interest income of RMB217 million, RMB214 million and RMB589 million respectively. The interest cost associated with major development and construction projects is capitalized and included in the cost of the property, plant and equipment or project assets. Interest capitalization ceases once a project is substantially completed or no longer undergoing construction activities to prepare it for its intended use. When no debt is specifically identified as being incurred in connection with a construction project, the Group capitalizes interest on amounts expended on the project at the Group’s weighted average cost of borrowings. Interest expense capitalized associated with the construction projects for the years ended December 31, 2020, 2021 and 2022 were RMB29 million, RMB41 million and RMB71 million, respectively. |
Land use rights and land lease | p. Land use rights and land lease (a) Land use rights Land use rights represent acquisition costs to purchase land use rights from the PRC government, which are evidenced by property certificates. The periods of these purchased land use rights are either 50 years or 70 years. The Company classifies land use rights as long term assets on the balance sheet and cash outflows related to acquisition of land use right as investing activities. Land use rights are carried at cost less accumulated amortization and impairment losses, if any. Amortization is computed using the straight-line method over the term specified in the land use right certificate for 50 years or 70 years, as applicable. (b) Land lease For certain of the Group’s solar power project, the Group enters into land lease contracts with the owners of the land use rights. Under such lease arrangements, the owners retain the property right of the land use rights. While the Group can only set up the solar panels on these leased lands but does not have the right to sell, lease or dispose the land use rights. Accordingly, land leases are classified as operating leases. |
Intangible assets | q. Intangible assets Intangible assets include purchased software and fees paid to register trademarks and are amortized on a straight-line basis over their estimated useful lives, which are 5 or 10 years, respectively. |
Business combination and assets acquisition | r. Business combination and assets acquisition U.S. GAAP requires that all business combinations not involving entities or businesses under common control be accounted for under the purchase method. The Group has adopted ASC 805 “Business Combinations,” and the cost of an acquisition is measured as the aggregate of the fair values at the date of exchange of the assets given, liabilities incurred and equity instruments issued. The transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets, liabilities and contingent liabilities acquired or assumed are measured separately at their fair value as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of the (i) the total of cost of acquisition, fair value of the non-controlling interests and acquisition date fair value of any previously held equity interest in the acquiree over (ii) the fair value of the identifiable net tangible and intangible assets of the acquiree is recorded as goodwill. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of operations and comprehensive income. The determination and allocation of fair values to the identifiable assets acquired and liabilities assumed is based on various assumptions and valuation methodologies requiring considerable management judgment. The most significant variables in these valuations are discount rates, terminal values, the number of years on which to base the cash flow projections, as well as the assumptions and estimates used to determine the future cash inflows and outflows. Management determines discount rates to be used based on the risk inherent in the related activity’s current business model and industry comparisons. Terminal values are based on the expected life of products and forecasted life cycle and forecasted cash flows over that period. Although management believes that the assumptions applied in the determination are reasonable based on information available at the date of acquisition, actual results may differ from the forecasted amounts and the difference could be material. A non-controlling interest is recognized to reflect the portion of a subsidiary’s equity which is not attributable, directly or indirectly, to the Company. Consolidated net income on the consolidated statements of operations and comprehensive income includes the net income (loss) attributable to non-controlling interests when applicable. The cumulative results of operations attributable to non-controlling interests are also recorded as non-controlling interests in the Company’s consolidated balance sheets. Cash flows related to transactions with non-controlling interests are presented under financing activities in the consolidated statements of cash flows when applicable. |
Investments | s. Investments On January 1, 2018, the Company adopted ASU No. 2016-01, which requires equity investments to be measured at fair value with subsequent changes recognized in net income, except for those accounted for under the equity method or requiring consolidation. This standard also changed the accounting for investments without a readily determinable fair value and that do not qualify for the practical expedient to be measured at fair value. A policy election can be made for these investments whereby investment will be carried at cost and adjusted in subsequent periods for any impairment or changes in observable prices of identical or similar investments. With the adoption of ASU No. 2016-01 and the Update, for investments in equity securities lacking of readily determinable fair values and the ability to exercise significant influence, the Company elected to use the measurement alternative defined as cost, less impairments, adjusted by observable price changes. Adoption of these standards had no significant impact on the Group’s consolidated financial statements for the years ended 2020, 2021 and 2022. The Group’s investments include equity method investments, equity securities without readily determinable fair values, equity securities applying fair value option and available-for-sale debt securities. The Group holds equity investments in affiliates in which it does not have a controlling financial interest, but has the ability to exercise significant influence over the operating and financial policies of the investee. These investments are accounted for under equity method of accounting wherein the Group records its proportionate share of the investees’ income or loss in its consolidated financial statements. Equity securities without readily determinable fair values are measured and recorded using a measurement alternative that measures the securities at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes. Fair value option election is made on an instrument-by-instrument basis and equity securities applying fair value option is reported at fair value with changes in fair value recognized in earnings. Equity investments are evaluated for impairment when facts or circumstances indicate that the fair value of the investment is less than its carrying value. The Group reviews several factors to determine whether an impairment is recognized. These factors include, but are not limited to, the: (1) nature of the investment; (2) cause and duration of the impairment; (3) extent to which fair value is less than cost; (4) financial conditions and near term prospects of the issuers; and (5) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. Debt securities that the Company has positive intent and ability to hold to maturity are classified as held to maturity debt securities and are stated at amortized cost. The Company classified its investments in debt securities, other than the held to maturity debt securities, as available-for-sale securities. Available-for-sale debt securities are reported at estimated fair value with the aggregate unrealized gains and losses, net of tax, reflected in “Accumulated other comprehensive loss” in the consolidated balance sheets. If the amortized cost basis of an available-for-sale security exceeds its fair value and if the Company has the intention to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of the amortized cost basis, an impairment is recognized in the consolidated statements of operations. If the Company does not have the intention to sell the security and it is not more likely than not that the Company will be required to sell the security before recovery of the amortized cost basis and the Company determines that the decline in fair value below the amortized cost basis of an available-for-sale security is entirely or partially due to credit-related factors, the credit loss is measured and recognized as an allowance for credit losses in the consolidated statements of operations. The allowance is measured as the amount by which the debt security’s amortized cost basis exceeds the Company’s best estimate of the present value of cash flows expected to be collected. |
Impairment of long-lived assets | t. Impairment of long-lived assets The Group’s long-lived assets include property, plant and equipment, project assets, land use rights and intangible assets with finite lives. The Group’s business requires heavy investment in manufacturing equipment that is technologically advanced, but can quickly become significantly under-utilized or rendered obsolete by rapid changes in demand for solar power products produced with those equipment. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that carrying amount of an asset may not be recoverable. Factors considered important that could result in an impairment review include significant underperformance relative to expected historical or projected future operating results, significant changes in the manner of use of acquired assets and significant negative industry or economic trends. The Group may recognize impairment of long-lived assets in the event the net book value of such assets exceeds the future undiscounted cash flows attributable to these assets. If the total of the expected undiscounted future net cash flows is less than the carrying amount of the asset, a loss, if any, is recognized for the difference between the fair value of the asset and its carrying value. Fair value is generally measured based on either quoted market prices, if available, or discounted cash flow analyses. |
Leases | u. Leases The Company adopted ASC Topic 842 to account for its lease transactions since January 1, 2019. The Company determines if a contract contains a lease at inception of the arrangement based on whether it has the right to obtain substantially all of the economic benefits from the use of an identified asset and whether it has the right to direct the use of an identified asset in exchange for consideration, which relates to an asset which the Company does not own. Right of use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. When determining the lease term, the Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option, if any. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, which it calculates based on the credit quality of the Company and by comparing interest rates available in the market for similar borrowings, and adjusting this amount based on the impact of collateral over the term of each lease. The Company does not typically incur variable lease payments related to its leases. For a sale-leaseback transaction, sale-leaseback accounting shall be used by a seller-lessee only if the transaction meet all of the following: a) the transfer of the underlying asset meets the definition of a sale under ASC 606; b) the leaseback transaction does not result in a lease that would be classified as a finance lease; c) the contract does not contain a repurchase option, unless the option is exercisable at the fair value on the exercise date and there are alternative assets substantially the same as the transferred asset available in the market place. If a sale-leaseback transaction does not qualify for sale-leaseback accounting because of the transfer of underlying assets does not meet the definition of sale, it is accounted for as a financing under ASC 360. The Company has elected to adopt the following lease policies in conjunction with the adoption of ASU 2016-02: (i) elect for each lease not to separate non-lease components from lease components and instead to account for each separate lease component and the non-lease components associated with that lease component as a single lease component; (ii) for leases that have lease terms of 12 months or less and does not include a purchase option that is reasonably certain to exercise, the Company elected not to apply ASC Topic 842 recognition requirements; and (iii) the Company elected to apply the package of practical expedients for existing arrangements entered into prior to January 1, 2019 to not reassess (a) whether an arrangement is or contains a lease, (b) the lease classification applied to existing leases, and(c) initial direct costs. |
Guarantees | v. Guarantees The Group issues debt payment guarantees in favor of JinkoPower, a related party. The guarantees require the Group to make payments to reimburse the holders of the debt subject to these guarantees for losses they incur JinkoPower fails to make repayments to the holders, when its liability to the holders falls due. A guarantee liability is initially recognized at the estimated fair value in the Group’s consolidated balance sheets unless it becomes probable that the Group will reimburse the holder of the guarantee for an amount higher than the carrying amount, in which case the guarantee is carried in the Group’s consolidated balance sheets at the expected amount payable to the holder. The fair value of the guarantee liability is measured by the total consideration to be received in connection with the provision of guarantee. The guarantee liability is amortized in straight line during the guarantee period. Receivables have also been recorded for the guarantee payments to be received (Note 26). Pursuant to the master service agreement signed with JinkoPower, guarantee service fee is settled on an annual basis. |
Revenue recognition | w. Revenue recognition On January 1, 2018, the Company adopted revenue guidance ASC Topic 606, “Revenue from Contracts with Customers” (“ASC 606”). The Company negotiated payment terms on a case by case basis and allows most of its overseas’ customers to make full payment within 90 days and its domestic customers to make 90% to 95% of payment within 180 days after delivery and the rest will be paid when the Retainage Period (as defined below) ends. As a result of adopting ASC Topic 606, for the sales contracts with retainage terms, under which customers were allowed to withhold payment of 5% to 10% of the full contract price as retainage for a specified period from one year to two year since normal operation of related customer’s solar project (“Retainage Period”), revenue from retainage is recognized upon the Group satisfied its performance obligation to transfer the goods to its customers instead of deferring recognition until the customers pay it after the Retainage Period expires. Revenue recognition for the Group’s other sales arrangements, including sales of solar modules, wafers, cells and revenue from generated electricity, remained materially consistent with historical practice. For the contracts with retainage terms signed and executed before the adoption date of January 1, 2018, as 90%~95% of the revenue was recognized before the date of initial application, which is considered to be substantial, management concluded that these contracts have been completed before the adoption date, and as the company has elected to apply the modified retrospective adoption method only to contracts that were not completed as of January 1, 2018, no cumulative effect related to these retainages is recognized as an adjustment to the opening balance of retained earnings. The revenue recognized upon collection of these retainage amounts is recognized under ASC 605, the prior revenue recognition standard, with the amount of RMB29 million, RMB3 million and RMB0.4 million in 2020, 2021 and 2022. The total amounts of retainage that were not recognized as revenue were RMB27 million, RMB24 million and RMB23 million as of December 31, 2020, 2021 and 2022, respectively. The Group was mainly subject to value added taxes (“VAT”) on its sales from products. The Group recognizes revenue net of VAT. Related surcharges, such as urban maintenance and construction tax as well as surtax for education expenses are recorded in cost of revenues. The Company’s accounting practices under ASC Topic 606, “Revenue from Contracts with Customers” are as followings: (a) Revenue recognition on product sales For all product sales, the Group requires a contract or purchase order which quantifies pricing, quantity and product specifications. The Company’s sales arrangements generally do not contain variable considerations and are short-term in nature. The Company recognizes revenue at a point in time based on management’s evaluation of when the customer obtains control of the products. Revenue is recognized as performance obligation under the terms of a contract with the customer are satisfied and control of the product has been transferred to the customer. Sales of goods do not include multiple product and/or service elements. Practical expedients and exemption Upon the election of the practical expedient under ASC 340-40-25-4, the incremental costs of obtaining a contract are expensed when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. For the years ended December 31, 2020, 2021 and 2022, no incremental cost was capitalized as assets. The Group also selected to apply the practical expedients allowed under ASC Topic 606 to omit the disclosure of remaining performance obligations for contracts with an original expected duration of one year or less and for contracts where the Company has the right to invoice for performance completed to date. Based on the considerations that there is no difference between the amount of promised consideration and the cash selling price of product sales, in addition the actual length of time between when the Group transfers products to the customer and when the customer pays for those products has been generally within one year, the Group assessed and concluded that there is no significant financing component in place within its products sales as a practical expedient in accordance with ASC 606-10-32-18. As the retainage term is made to secure the future effective operation of solar modules and not to provide customer with significant financing, no significant financing component is considered to exist in the sales contract with retainage terms. (b) Sales of solar projects The Company’s sales arrangements for solar projects do not contain any forms of continuing involvement that may affect the revenue or profit recognition of the transactions, nor any variable considerations for energy performance guarantees, minimum electricity end subscription commitments. The Company therefore determined its single performance obligation to the customer is the sale of a completed solar project. The Group recognizes revenue for sales of solar projects at a point in time after the solar project has been grid connected and the customer obtains control of the solar project. (c) Revenue on electricity generation The Group recognizes electricity generation revenue on project assets constructed with a plan to operate the plant when persuasive evidence of a power purchase arrangement with the power grid company exists, electricity has been generated and been transmitted to the grid and the electricity generation records are reconciled with the grid companies, the price of electricity is fixed or determinable and the collectability of the resulting receivable is reasonably assured. (d) Revenue on processing services The Group provides solar power product processing services to customers and the revenue of processing services is recognized at a point in time upon completion which is generally evidenced by delivery of processed products to the customers. VAT on invoice amount is collected on behalf of tax authorities in respect of the sales of product and is not recorded as revenue. VAT collected from customers, net of VAT paid for purchases, is recorded as a liability until it is paid to the tax authorities. |
Segment report | x. Segment report The Group uses the management approach in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Group’s chief operating decision maker for making operating decisions, allocating resources and assessing performance as the source for determining the Group’s reportable segments. Based on the criteria established by ASC 280 “Segment Reporting”, the Group’s chief operating decision maker has been identified as the Chairman of the Board of Directors as well as the CEO, who only review consolidated results of the Group when making decisions about allocating resources and assessing performance. Hence, the Group has only one operating segment which is vertically integrated solar power products manufacturing business from silicon ingots, wafers, cells to solar modules. |
Cost of revenue | y. Cost of revenue Cost of revenue for sales of photovoltaic products includes production and indirect costs, as well as shipping and handling costs for raw materials purchase and provision for inventories. Costs of electricity generation revenue include depreciation of solar power project assets and costs associated with operation and maintenance of the project assets. Cost of electricity sales was RMB40 million, RMB31 million and nil for years ended December 31, 2020, 2021 and 2022, respectively. |
Warranty cost | z. Warranty cost Solar modules produced by the Group are typically sold with either a 5-year or 10-year warranty for product defects, and a 10-year and 25-year warranty against declines of more than 10% and 20%, respectively, from the initial minimum power generation capacity at the time of delivery. Therefore, the Group is exposed to potential liabilities that could arise from these warranties. The potential liability is generally in the form of product replacement or repair. Management applied significant judgements in estimating the expected failure rate of the Company’s solar module products and the estimated replacement costs associated with fulfilling its warranty obligations when measuring the warranty costs. Based on the actual claims incurred during the past years which appears to be consistent with the market practice, the Group projected the expected failure rate as 1% for the whole warranty period, which is consistent with prior assumptions. Based on the Group’s actual claims experience in the historical periods as well as management’s current best estimation, the Group believes that the average selling price of solar modules over the past two years more accurately reflects the estimated warranty cost liability in connection with the products sold by the Group, as opposed to the current and past spot prices. For the years ended December 31, 2020 and 2021, due to the decrease in average selling price of solar modules, the Group reversed previous years’ recorded warranty liability of RMB124 million and RMB104 million, with a corresponding decrease to selling and marketing expenses, respectively. For the year ended December 31, 2022, due to the rising in average selling price of solar modules, the Group increased previous years’ recorded warranty liability of RMB75 million, with a corresponding increase to selling and marketing expenses in 2022. The warranty costs were classified as current liabilities under other payables and accruals, and non-current liabilities under accrued warranty costs–non-current, respectively, which reflect the Group’s estimation of the timing of when the warranty expenditures will likely be made. For the years ended December 31, 2020, 2021 and 2022, warranty costs accrued for the modules delivered in the periods before the increase/reversal due to updated project replacement cost were RMB363 million, RMB390 million and RMB773 million, respectively. The utilization of the warranty accruals for the years ended December 31, 2020, 2021 and 2022 were RMB99 million, RMB171 million and RMB212 million, respectively. Utilization of warranty accruals in 2020 and 2022 was mainly due to sporadic customer claims with accumulation of the Group’s solar module shipment. Utilization of warranty accruals in 2021 was mainly due to extreme climatic conditions in Europe. Movement of accrued warranty cost The following table summarizes the movement of accrued warranty cost (RMB in thousands): For the year ended December 31, 2020 2021 2022 RMB RMB RMB At beginning of year 751,440 892,131 1,007,805 Additions 363,159 390,238 773,498 Utilization (98,526) (170,776) (212,130) Accrue (reversal) to selling and marketing expense (123,942) (103,788) 74,802 At end of year 892,131 1,007,805 1,643,975 The Group purchases warranty insurance policy which provides coverage for the product warranty services of solar modules worldwide. Prepayment for warranty insurance premium is initially recorded as other assets and is amortized over the insurance coverage period. Prepayment for warranty insurance premium is not recorded as reduction of estimated warranty liabilities . In previous years, the Company incurred additional warranty costs due to the defects in a specific batch of raw materials provided by a supplier. The Company appealed against the supplier for the defects and obtained the final judgement from the court in September 2020, pursuant to which the Company shall be compensated by the supplier with the amount of RMB83 million by offsetting the Company’s payables due to such supplier. Given that, the Company reversed warranty expenses in the third quarter of 2020 with a corresponding reduction in accounts payables. |
Shipping and handling | aa. Shipping and handling Costs to ship products to customers are included in selling and marketing expenses in the consolidated statements of operations. Costs to ship products to customers were RMB1,631 million, RMB2,048 million and RMB5,161 million for the years ended December 31, 2020, 2021 and 2022, respectively. |
Research and development | ab. Research and development Research and development costs are expensed when incurred. |
Start-up costs | ac. Start-up costs The Group expenses all costs incurred in connection with start-up activities, including pre-production costs associated with new manufacturing facilities (excluding costs that are capitalized as part of property, plant and equipment) and costs incurred with the formation of new subsidiaries such as organization costs. |
Income Taxes | ad. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and any tax loss and tax credit carry forwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates or tax laws is recognized in the consolidated statements of operations in the period the change in tax rates or tax laws is enacted. A valuation allowance is provided to reduce the amount of deferred income tax assets if it is considered more likely than not that some portion or all of the deferred income tax assets will not be realized. The accounting for uncertain tax positions requires that the Company recognizes in the consolidated financial statements the impact of an uncertain tax position, if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group’s policy is to recognize, if any, tax related interest as interest expenses and penalties as general and administrative expenses. As of December 31, 2021 and 2022, there were no uncertain tax positions. |
Commitments and Contingencies | ae. Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. |
Fair value of financial instruments | af. Fair value of financial instruments The Group does not have any non-financial assets or liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (also referred to as an exit price). A hierarchy is established for inputs used in measuring fair value that gives the highest priority to observable inputs and the lowest priority to unobservable inputs. Valuation techniques used to measure fair value shall maximize the use of observable inputs. When available, the Group measures the fair value of financial instruments based on quoted market prices in active markets, valuation techniques that use observable market-based inputs or unobservable inputs that are corroborated by market data. Pricing information the Group obtains from third parties is internally validated for reasonableness prior to use in the consolidated financial statements. When observable market prices are not readily available, the Group generally estimates the fair value using valuation techniques that rely on alternate market data or inputs that are generally less readily observable from objective sources and are estimated based on pertinent information available at the time of the applicable reporting periods. In certain cases, fair values are not subject to precise quantification or verification and may fluctuate as economic and market factors vary and the Group’s evaluation of those factors changes. Although the Group uses its best judgment in estimating the fair value of these financial instruments, there are inherent limitations in any estimation technique. In these cases, a minor change in an assumption could result in a significant change in its estimate of fair value, thereby increasing or decreasing the amounts of the Group’s consolidated assets, liabilities, equity and net income. The Group’s financial instruments consist principally of cash and cash equivalents, restricted cash, restricted short-term, available-for-sale securities and long-term investments, accounts and notes receivable, foreign exchange forward contract receivables other receivables, prepayments and other current assets, call option, foreign exchange option, accounts and notes payable, other payables and accruals, foreign exchange forward contract payables, guarantee liabilities, lease liabilities, short-term borrowings, long-term borrowings, long-term payables, convertible senior notes and interest rate swap. The foreign exchange forward contracts receivable and payable, call option, foreign exchange options, interest rate swap, equity securities applying fair value option, available-for-sale debt securities and convertible senior notes are measured at fair value (Note 29). The Group measures the equity method investments at fair value on a non-recurring basis only if an impairment charge were to be recognized. For those equity investments without readily determinable fair value, the Group measures them at fair value when observable price changes are identified or impairment charge was recognized. Except for these financial instruments and long-term borrowing, the carrying values of the Group’s other financial instruments approximated their fair values due to the short-term maturity of these instruments. The carrying amount of long-term borrowing approximates their fair value due to the fact that the related interest rates approximate rates currently offered by financial institutions for similar debt instruments of comparable maturities. When the fair value option is elected for financial liabilities, changes in fair value due to changes in instrument-specific credit risk will be recognized separately in other comprehensive income. As the Company elected to measure its convertible senior notes issued in 2019 in their entirety at fair value, the portion of the total change in the fair value of the convertible senior notes that results from a change in the instrument-specific credit risk is presented separately in other comprehensive income. The gains or losses attributable to changes in instrument-specific credit risk were benchmarked by the portion of the total change in fair value that excluding the amount resulting from a change in a risk-free rate. |
Government grants | ag. Government grants Government grants related to technology upgrades and enterprise development are recognized as subsidy income when received. For the years ended December 31, 2020, 2021 and 2022, the Group received financial subsidies of RMB192 million, RMB466 million and RMB1,089 million from the local PRC government authorities, respectively. These subsidies were non-recurring, not refundable and with no conditions related to specific use or disposition of the funds, attached. There are no defined rules and regulations to govern the criteria necessary for companies to enjoy such benefits and the amount of financial subsidy is determined at the discretion of the relevant government authorities. Government grants related to assets are initially recorded as deferred revenue which are then deducted from the carrying amount when the assets are ready for use and approved by related government. The Company received government grant related to assets of RMB20 million, RMB291 million and RMB1,469 million for the years ended December 31, 2020, 2021 and 2022, respectively. As of December 31, 2021 and 2022, the carrying value of deferred revenue was RMB200 million and nil, respectively. |
Repurchase of share | ah. Repurchase of share When the Company’s shares are purchased for retirement, the excess of the purchase price over its par value is recorded entirely to additional paid-in capital subject to the limitation of the additional paid in capital when the shares were originally issued. When the Company’s shares are acquired for purposes other than retirement, the purchase price is shown separately as treasury stock. |
Earnings/(Loss) per share | ai. Earnings/(Loss) per share Basic earnings(loss) per share is computed by dividing net income(loss) attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period using the two-class method. Under the two-class method, net income is allocated between ordinary shares and other participating securities based on their participating rights. Diluted earnings(loss) per share is calculated by dividing net income(loss) attributable to ordinary shareholders, as adjusted for the change in income or loss as result from the assumed conversion of those participating securities, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Potential diluted securities consist of the ordinary shares issuable upon the conversion of the convertible senior notes (using the if-converted method), the potential shares underlying call option arrangement and ordinary shares issuable upon the exercise of outstanding share options (using the treasury stock method), which are not included in the calculation of dilutive earnings per share if the effect is anti-dilutive. Changes in income or loss of potential dilutive securities as result from the assumed conversion of the convertible senior notes and assumed exercise of call option, if any, are recorded as the adjustment to the consolidated net income (loss) from continuing operations to arrive at the diluted net income (loss) available to the Company’s ordinary shareholders. Securities issued by a subsidiary that enable their holders to obtain the subsidiary’s common stock is included in computing the subsidiary’s earnings(loss) per share data. Those per-share earnings(loss) of the subsidiary are then included in the consolidated earnings(loss) per share computations based on the consolidated group’s holding of the subsidiary’s securities. |
Share-based compensation | aj. Share-based compensation The Company’s share-based payment transactions with employees, including share options, are measured based on the grant-date fair value of the equity instrument issued. The fair value of the award is recognized as compensation expense, net of estimated forfeitures, over the period during which an employee is required to provide service in exchange for the award, which is generally the vesting period. |
Other comprehensive income | ak. Other comprehensive income Other comprehensive income is defined as the change in equity during a period from non-owner sources. The Company’s other comprehensive income for each period presented is comprised of foreign currency translation adjustment of the Company’s foreign subsidiaries, the changes in fair value of interest swap cash flow hedges, fair value changes of the Company’s debt securities and changes in instrument-specific credit risk of financial liabilities using fair value option. |
Convenience translation | al. Convenience translation Translations of balances in the consolidated balance sheet, consolidated statement of operation, consolidated statement of comprehensive income and statement of cash flows from RMB into United States dollars (“USD” or “US$”) as of and for the year ended December 31, 2022 are solely for the convenience of readers and were calculated at the rate of RMB6.8972 to USD1.00, representing the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board. No representation is intended to imply that the RMB amounts could have been, or could be, converted, realized or settled into USD at that rate on December 31, 2022, or at any other rate. |
Recent accounting pronouncements | am. Recent accounting pronouncements New Accounting Standards Adopted In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting”, which provides optional expedients and exceptions for applying U.S. GAAP on contract modifications and hedge accounting to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform, if certain criteria are met. These optional expedients and exceptions provided in ASU 2020-04 are effective for the Company as of March 12, 2020 through December 31, 2022. We adopted this update in the first quarter of 2022 and the adoption did not have a material effect on our consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, “Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40),” which removes certain separation models for convertible debt instruments and convertible preferred stock that require the separation of a convertible debt instrument into a debt component and an equity or derivative component. The ASU also expands disclosure requirements for convertible instruments and simplifies areas of the guidance for diluted earnings-per-share calculations that are impacted by the amendments. The standard is effective for interim and annual periods beginning after December 15, 2021, with early adoption permitted. We adopted this update in the first quarter of 2022 and the adoption did not have a material effect on our consolidated financial statements. In May 2021, the FASB issued ASU No. 2021-04, Earnings Per Share (Topic 260), Debt — Modifications and Extinguishments (Subtopic 470-50), Compensation — Stock Compensation (Topic 718), and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) to clarify and reduce diversity in an issuer’s accounting for modifications or exchanges of freestanding equity classified written call options (for example, warrants) that remain equity classified after modification or exchange. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the amendments prospectively to modifications or exchanges occurring on or after the effective date of the amendments. We adopted this update in the first quarter of 2022 and the adoption did not have a material effect on our consolidated financial statements. New Accounting Standards Not Yet Adopted In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. The amendments in this Update also provide certain practical expedients for acquirers when recognizing and measuring acquired contract assets and contract liabilities from revenue contracts in a business combination. The amendments should be applied prospectively to business combinations occurring on or after the effective date of the amendments, with early adoption permitted. We will adopt this update in the first quarter of 2023 and we are currently evaluating the impact. In March 2022, the FASB issued ASU 2022-02, Troubled Debt Restructurings and Vintage Disclosures. This ASU eliminates the accounting guidance for troubled debt restructurings by creditors that have adopted ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which the Company adopted on January 1, 2020. This ASU also enhances the disclosure requirements for certain loan refinancing and restructurings by creditors when a borrower is experiencing financial difficulty. In addition, the ASU amends the guidance on vintage disclosures to require entities to disclose current period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of ASC 326-20. The ASU is effective for annual periods beginning after December 15, 2022, including interim periods within those fiscal years. Adoption of the ASU would be applied prospectively. Early adoption is also permitted, including adoption in an interim period. We will adopt this update in the first quarter of 2023 and we are currently evaluating the impact. In June 2022, the FASB issued ASU 2022-02 Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions. The update clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The update also clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The update also requires certain additional disclosures for equity securities subject to contractual sale restrictions. The amendments in this update are effective for the Company beginning January 1, 2024 on a prospective basis. Early adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. We are in the process of evaluating the impact of the new guidance on our consolidated financial statements. |
ORGANIZATION AND NATURE OF OP_2
ORGANIZATION AND NATURE OF OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ORGANIZATION AND NATURE OF OPERATIONS | |
Schedule of Subsidiaries | Date of Incorporation Place of Percentage Subsidiaries /Acquisition Incorporation of ownership JinkoSolar Investment Limited. (“Paker”) November 10, 2006 Hong Kong 100 % Jinko Solar Co., Ltd. (“Jiangxi Jinko”) (Note 24) December 13, 2006 PRC 58.6 % Zhejiang Jinko Solar Co., Ltd. (“Zhejiang Jinko”) June 30, 2009 PRC 58.6 % Jinko Solar Import and Export Co., Ltd. (“Jinko Import and Export”) December 24, 2009 PRC 58.6 % JinkoSolar GmbH (“Jinko GmbH”) April 1, 2010 Germany 58.6 % Zhejiang Jinko Trading Co., Ltd. (“Zhejiang Trading”) June 13, 2010 PRC 58.6 % Xinjiang Jinko Solar Co., Ltd. (“Xinjiang Jinko”) May 30, 2016 PRC 58.6 % Yuhuan Jinko Solar Co., Ltd. (“Yuhuan Jinko”) July 29, 2016 PRC 58.6 % JinkoSolar (U.S.) Inc. (“Jinko US”) August 19, 2010 USA 58.6 % Jiangxi Photovoltaic Materials Co., Ltd. (“Jiangxi Materials”) December 1, 2010 PRC 58.6 % JinkoSolar (Switzerland) AG (“Jinko Switzerland”) May 3, 2011 Switzerland 58.6 % JinkoSolar (US) Holdings Inc. (“Jinko US Holding”) June 7, 2011 USA 58.6 % JinkoSolar Italy S.R.L. (“Jinko Italy”) July 8, 2011 Italy 58.6 % Jinko Solar Canada Co., Ltd. (“Jinko Canada”) November 18, 2011 Canada 58.6 % Jinko Solar Australia Holdings Co. Pty Ltd. (“Jinko Australia”) December 7, 2011 Australia 58.6 % Jinko Solar Japan K.K. (“JinkoSolar Japan”) May 21, 2012 Japan 58.6 % Date of Incorporation Place of Percentage Subsidiaries /Acquisition Incorporation of ownership Jinko Solar (Shanghai) Management Co., Ltd. July 25, 2012 PRC 58.6 % Wide Wealth Group Holding Limited. (“Wide Wealth Hong Kong”) June 11, 2012 Hong Kong 100 % Canton Best Limited (“Canton Best BVI”) September 16, 2013 BVI 100 % Jinko Solar Technology Sdn.Bhd. January 21, 2015 Malaysia 58.6 % JinkoSolar International Development Limited. August 28, 2015 Hong Kong 100 % JinkoSolar Middle East DMCC (“DMCC”) November 6, 2016 Emirates 58.6 % JinkoSolar Trading Privated Limited. February 6, 2017 India 58.6 % JinkoSolar LATAM Holding Limited. August 22, 2017 Hong Kong 100 % JinkoSolar (U.S.) Industries Inc. November 16, 2017 USA 58.6 % JinkoSolar Technology (Haining) Co., Ltd. (“Haining Jinko”)* December 15, 2017 PRC 45.9 % Poyang Ruilixin Information Technology Co., Ltd. December 19, 2017 PRC 58.6 % Jinko Solar Korea Co., Ltd. (“Jinko Korea”) December 3, 2018 Korea 58.6 % JinkoSolar (Sichuan) Co., Ltd. (“Jinko Sichuan”)* February 18, 2019 PRC 38.4 % JinkoSolar (Qinghai) Co., Ltd. (“Jinko Qinghai”)* April 3, 2019 PRC 32.2 % Rui Xu Co., Ltd. (“Rui Xu”)* July 24, 2019 PRC 35.2 % JinkoSolar (Yiwu) Co., Ltd. (“Jinko Yiwu”)* September 19, 2019 PRC 32.2 % Jinko PV Material Supply SDN. BHD September 23, 2019 Malaysia 58.6 % JinkoSolar (Vietnam) Co., Ltd. September 26, 2019 Vietnam 58.6 % JinkoSolar (Chuzhou) Co., Ltd. (“Jinko Chuzhou”)* December 26, 2019 PRC 32.2 % Zhejiang New Materials Co., Ltd. (“Zhejiang New Materials”) March 24, 2020 PRC 58.6 % JinkoSolar (Shangrao) Co., Ltd. (“Jinko Shangrao”)* April 17, 2020 PRC 32.2 % Jinko Solar Denmark ApS May 28, 2020 Denmark 58.6 % JinkoSolar Hong Kong Limited August 17, 2020 Hong Kong 58.6 % Jinko Solar (Malaysia) SDN BHD August 28, 2020 Malaysia 58.6 % JinkoSolar (Chuxiong) Co., Ltd. (“Jinko Chuxiong”) September 25, 2020 PRC 58.6 % Yiwu New Materials Co., Ltd. (“Yiwu Materials”) October 14, 2020 PRC 58.6 % Jinko Solar (Vietnam) Industries Company Limited. March 29, 2021 Vietnam 58.6 % JinkoSolar (Leshan) Co., Ltd. (“Jinko Leshan”) April 25, 2021 PRC 58.6 % JinkoSolar (Anhui) Co., Ltd. (“Jinko Anhui”) * September 3, 2021 PRC 32.2 % JinkoSolar (Yushan) Co., Ltd. (“Jinko Yushan”) * September 26, 2021 PRC 46.9 % Fengcheng Jinko PV Materials Co., Ltd August 11, 2021 PRC 58.6 % JinkoSolar (Feidong) Co., Ltd. (“Jinko Feidong”) * September 23, 2021 PRC 32.2 % JinkoSolar (Jinchang) Co., Ltd. (“Jinko Jinchang”) September 24, 2021 PRC 58.6 % JinkoSolar (Poyang) Co., Ltd. (“Jinko Poyang”) December 1, 2021 PRC 58.6 % Shangrao Changxin Enterprise Management Center LP. December 16, 2021 PRC 100 % Shangrao Changxin No. 1 Enterprise Management Center LP. February 17, 2022 PRC 100 % Shangrao Changxin No. 2 Enterprise Management Center LP. February 17, 2022 PRC 100 % Shangrao Changxin No. 3 Enterprise Management Center LP. June 15, 2022 PRC 100 % Shangrao Changxin No. 5 Enterprise Management Center LP. June 15, 2022 PRC 100 % Shangrao Changxin No. 6 Enterprise Management Center LP. October 25, 2022 PRC 100 % Jiaxing Jinyue Phase I Venture Capital Partnership April 26, 2022 PRC 78.2 % Shangrao Jinko PV Manufacturing Co., Ltd. March 28, 2022 PRC 58.6 % Shangrao Guangxin Jinko PV Manufacturing Co., Ltd March 23, 2022 PRC 58.6 % Jinko Energy Storage Technology Co., Ltd. December 6, 2022 PRC 58.6 % Jiangxi Jinko Energy Storage Co., Ltd May 26, 2022 PRC 58.6 % * These entities are subsidiaries of Jiangxi Jinko with non-controlling interest. The percentage of ownership is the economic interest calculated as the multiple of the Company’s ownership in Jiangxi Jinko and Jiangxi Jinko’s ownership in such subsidiary. |
PRINCIPAL ACCOUNTING POLICIES_2
PRINCIPAL ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PRINCIPAL ACCOUNTING POLICIES | |
Schedule of cash, cash equivalents and restricted cash as reported in the consolidated statement of cash flows | Cash, cash equivalents and restricted cash as reported in the consolidated statement of cash flows are presented separately As of December 31, 2021 2022 RMB RMB Cash and cash equivalents 8,321,415 10,243,500 Restricted cash 602,044 1,027,454 Cash and cash equivalents included in held-for-sale assets (note 2 (n)) 173,787 — Total 9,097,246 11,270,954 |
Schedule of property plant and equipment useful life | Buildings 20 years Machinery and equipment 5~10 years Furniture, fixture and office equipment 3~5 years Motor vehicles 4~5 years |
Schedule of accrued warranty cost | The following table summarizes the movement of accrued warranty cost (RMB in thousands): For the year ended December 31, 2020 2021 2022 RMB RMB RMB At beginning of year 751,440 892,131 1,007,805 Additions 363,159 390,238 773,498 Utilization (98,526) (170,776) (212,130) Accrue (reversal) to selling and marketing expense (123,942) (103,788) 74,802 At end of year 892,131 1,007,805 1,643,975 |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
REVENUES. | |
Schedule of revenues by for the respective periods | The Group’s revenues for the respective periods are detailed as follows (RMB in thousands): For the years ended December 31, 2020 2021 2022 RMB RMB RMB Sales of solar modules 32,556,394 37,737,383 80,224,354 Sales of solar projects 1,197,713 — 31,400 Sales of silicon wafers 452,141 1,152,055 466,553 Sales of solar cells 344,510 606,582 1,024,114 Sales of other solar materials 478,184 1,043,760 1,380,875 Processing service fees — 186,045 — Revenue from generated electricity 100,517 100,696 — Total 35,129,459 40,826,521 83,127,296 |
Summary of revenues in generated in respective region | The following table summarizes the Group’s net revenues generated in respective region (RMB in thousands): For the years ended December 31, 2020 2021 2022 RMB RMB RMB Inside China (including Hong Kong and Taiwan) 6,370,975 10,134,888 34,839,410 North America 10,098,116 6,621,799 3,727,493 Europe 4,644,487 7,481,581 19,637,777 Asia Pacific 9,603,211 10,239,162 11,274,447 Rest of the world 4,412,670 6,349,091 13,648,169 Total 35,129,459 40,826,521 83,127,296 |
INTEREST EXPENSES, NET (Tables)
INTEREST EXPENSES, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INTEREST EXPENSES, NET | |
Schedule of Interest Expenses | Components of interest expenses, net are detailed as follows (RMB in thousands): For the years ended December 31, 2020 2021 2022 RMB RMB RMB Interest expenses 705,159 878,908 1,150,128 Less: Interest capitalization (29,307) (40,588) (70,719) Less: Interest income (216,618) (214,291) (588,706) Total 459,234 624,029 490,703 |
OTHER INCOME, NET (Tables)
OTHER INCOME, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OTHER INCOME, NET | |
Schedule of Other Nonoperating Income (Expense) | Components of other income, net are detailed as follows (RMB in thousands): For the years ended December 31, 2020 2021 2022 RMB RMB RMB Guarantee income 14,687 6,365 — Donations (12,395) (4,454) (6,824) Disposal of Tiansheng — — 12,474 Disposal of solar power project in Argentina — — 1,758 Others — — (5,837) Total 2,292 1,911 1,571 |
TAXATION (Tables)
TAXATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
TAXATION | |
Schedule of Income/ (loss) before income taxes | For the year ended December 31, 2020 2021 2022 RMB RMB RMB Cayman Islands (784,811) 199,956 (639,136) PRC 444,368 1,120,667 2,743,467 Other countries 906,815 (230,720) (127,622) Income before income taxes 566,372 1,089,903 1,976,709 |
Schedule of current and deferred positions of income tax expense | For the year ended December 31, 2020 2021 2022 RMB RMB RMB Current income tax (expenses)/benefits PRC 26,473 (280,877) (867,937) Other countries (110,726) (175,633) (58,014) Total current income tax expenses (84,253) (456,510) (925,951) Deferred tax (expenses)/benefits PRC (7,436) 77,741 457,266 Other countries (86,722) 184,629 (136,593) Total deferred tax (expenses)/benefits (94,158) 262,370 320,673 Income tax expenses, net (178,411) (194,140) (605,278) |
Schedule of reconciliation of the differences between statutory tax rate and the effective tax rate | For the year ended December 31, 2020 2021 2022 % % % Statutory CIT rate 25.0 25.0 25.0 Effect of permanent differences: —Share-based compensation expenses 0.1 0.1 3.2 —Change in fair value of convertible senior notes and call options 32.0 (4.4) 0.2 —Accrued payroll and welfare expenses 0.4 0.1 0.1 —Change of enacted tax rate (7.2) 2.1 1.6 —Other non-deductible expenses including tax preferences (6.6) (1.8) 3.4 Difference in tax rate of subsidiaries outside the PRC (3.1) 2.2 3.9 Effect of tax holiday for subsidiaries (7.8) (12.9) (12.1) Change in valuation allowance (1.3) 7.4 5.3 Effective tax rate 31.5 17.8 30.6 |
Schedule of aggregate amount and per share effect of reduction of CIT for certain PRC subsidiaries | For the year ended December 31, 2020 2021 2022 RMB RMB RMB The aggregate amount of effect* 44,191 140,235 239,268 Per share effect—basic 0.25 0.74 1.21 Per share effect—diluted ** 0.25 0.68 1.19 * Increase of the aggregated amount of effect in 2022 was mainly attributable to more profit generated by the Group’s PRC subsidiaries with preferential tax rates. **Due to the dilutive impact of call option in 2020, the denominator for diluted earnings per share is less than that for the basic earnings per share (Note 20). Therefore, the Company used the basic denominator for both of the basic and diluted effect to calculate above per share effect of tax holidays in 2020. |
Schedule of deferred tax assets/liability | As of December 31, 2021 2022 RMB RMB Net operating losses 473,367 529,522 Accrued warranty costs 216,938 373,064 Provision for inventories, accounts receivable, other receivable 101,595 230,019 Timing difference for subsidiary income 15,235 166,857 Other temporary differences 24,953 69,183 Impairment for property, plant and equipment and project assets 100,860 35,491 Total deferred tax assets 932,948 1,404,136 Less: Valuation allowance (217,124) (243,141) Less: Deferred tax liabilities in the same tax jurisdiction (344,057) (456,751) Deferred tax assets 371,767 704,244 Timing difference for project assets, property, plant and equipment (375,499) (478,515) Timing difference for refund of countervailing duties (144,923) (90,864) Deferred tax liabilities related to cumulative distributable earnings in Jiangxi Jinko — (52,173) Other temporary differences (6,638) (30,007) Total deferred tax liabilities (527,060) (651,559) Less: Deferred tax assets in the same tax jurisdiction 344,057 456,751 Deferred tax liabilities (183,003) (194,808) |
Schedule of Movement of valuation allowance | For the year ended December 31, 2020 2021 2022 RMB RMB RMB At beginning of year (144,317) (136,847) (217,124) Current year additions (37,426) (88,667) (216,260) Utilization and reversal of valuation allowances 44,896 8,390 111,296 Decrease of valuation allowances related to the disposal of a subsidiary — — 78,947 At end of year (136,847) (217,124) (243,141) |
ACCOUNTS RECEIVABLE, NET-THIR_2
ACCOUNTS RECEIVABLE, NET-THIRD PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ACCOUNTS RECEIVABLE, NET-THIRD PARTIES | |
Schedule of accounts receivables | As of December 31, 2021 2022 RMB RMB Accounts receivables - current 7,794,174 17,259,003 Allowance for credit losses - current (323,071) (584,127) Accounts receivable, net - current 7,471,103 16,674,876 Accounts receivables – non-current 28,186 — Allowance for credit losses – non-current (562) — Accounts receivable, net – non-current 27,624 — |
Summary of allowance for credit losses related to accounts receivable | As of December 31, 2020 2021 2022 RMB RMB RMB At beginning of year 318,198 293,360 323,071 Impact of adopting ASC Topic 326 (30,916) — — Addition 26,581 91,948 394,285 Reversal (20,503) (24,213) (114,770) Write off — (38,024) (18,459) At end of year 293,360 323,071 584,127 As of December 31, 2020 2021 2022 RMB RMB RMB At beginning of year — 1,139 562 Impact of adopting ASC Topic 326 — — — Addition 1,139 — — Reversal — (577) (562) At end of year 1,139 562 — |
NOTES RECEIVABLE, NET-THIRD P_2
NOTES RECEIVABLE, NET-THIRD PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
NOTES RECEIVABLE, NET-THIRD PARTIES | |
Schedule of Notes receivable, net-third parties | As of December 31, 2021 2022 RMB RMB Notes receivable 1,690,142 6,697,096 Provision for notes receivable (1,040) — Notes receivable, net 1,689,102 6,697,096 |
Summary of allowance for credit losses related to notes receivable | As of December 31, 2020 2021 2022 RMB RMB RMB At beginning of year — 182 1,040 Impact of adopting ASC Topic 326 223 — — Addition — 858 — Reversal (41) — (1,040) At end of year 182 1,040 — |
ADVANCES TO SUPPLIERS, NET - _2
ADVANCES TO SUPPLIERS, NET - THIRD PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ADVANCES TO SUPPLIERS, NET - THIRD PARTIES | |
Schedule of Advances to Suppliers | As of December 31, 2021 2022 RMB RMB Advances to suppliers - current 1,536,155 3,271,284 Advances to suppliers – non-current 296,709 310,375 Advances to suppliers, net 1,832,864 3,581,659 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INVENTORIES. | |
Schedule of Inventories | As of December 31, 2021 2022 RMB RMB Raw materials 3,761,045 5,499,573 Work-in-progress 2,623,044 3,237,480 Finished goods 6,868,263 8,713,231 Total 13,252,352 17,450,284 |
PREPAYMENTS AND OTHER CURRENT_2
PREPAYMENTS AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PREPAYMENTS AND OTHER CURRENT ASSETS | |
Schedule of prepayments and other current assets | As of December 31, 2021 2022 RMB RMB Value-added tax deductible (a) 1,705,159 1,374,909 Deposit for customer duty, bidding and others 142,442 181,371 Prepayment for income tax and deferred charges 129,931 233,744 Receivables related to disposal of land use rights and property, plant and equipment (b) 111,804 378,900 Receivables related to discount from a supplier 110,050 324,002 Prepayment of electricity and others 91,334 153,021 Prepaid insurance premium 6,675 7,281 Employee advances (c) 6,274 3,944 Refund receivable of U.S. countervailing duties and anti-dumping duties (Note 16) — 480,535 Rental deposit and prepayment 3,606 1,643 Receivable of option exercised 1,169 — Prepaid professional service fee 307 — Loan receivable (d) — 23,459 Others 131,827 136,212 Less: Allowance for credit losses (5,521) (8,118) Total 2,435,057 3,290,903 (a) Value-added tax deductible represented the balance that the Group can utilize to deduct its value-added tax liability within the next 12 months . (b) Represented the receivables related to disposition of certain equipment for the purpose of upgrading manufacturing facilities and receivables related to disposition of certain land use rights. (c) As of December 31, 2021 and 2022, all of the employee advances were business related, interest-free, not collateralized and will be repaid or settled within one year from the respective balance sheet dates. (d) Represented an interest-free half-year loan of RMB 23 million provided by Qinghai Jinko in 2022 to a third-party company. |
Summary of the activity in the allowance for credit losses related to prepayments and other current assets | For year ended December 31, 2022 RMB At beginning of year 5,521 Impact of adopting ASC Topic 326 — Addition 2,597 Reverse — At end of year 8,118 |
INVESTMENTS AND AVAILABLE-FOR_2
INVESTMENTS AND AVAILABLE-FOR-SALE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INVESTMENTS AND AVAILABLE-FOR-SALE SECURITIES | |
Summary of long-term investments | The Group’s investments are consisted of the follows (RMB in thousands): As of December 31, 2021 2022 RMB RMB -Debt investment Available-for-sale securities — 104,499 -Equity investment Investments accounted for under the equity method 538,866 1,287,201 Equity securities without readily determinable fair values 95,000 245,000 Equity securities applying fair value option — 178,871 Subtotal 633,866 1,711,072 Total 633,866 1,815,571 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
PROPERTY, PLANT AND EQUIPMENT, NET. | |
Schedule of property, plant and equipment | Property, plant and equipment used in continuing operation and related accumulated depreciation are as follows (RMB in thousands): As of December 31, 2021 2022 RMB RMB Buildings 6,875,072 12,655,905 Machinery and equipment 14,199,961 22,435,247 Motor vehicles 71,837 114,936 Furniture, fixture and office equipment 1,408,296 1,995,407 22,555,166 37,201,495 Less: Accumulated depreciation (5,232,342) (6,462,379) Subtotal 17,322,824 30,739,116 Construction in progress 2,647,070 1,550,972 Property, plant and equipment, net 19,969,894 32,290,088 |
LAND USE RIGHTS, NET (Tables)
LAND USE RIGHTS, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LAND USE RIGHTS, NET | |
Schedule of land use rights | Land use rights represent fees paid to the government to obtain the rights to use certain lands over periods of 50 As of December 31, 2021 2022 RMB RMB Land use rights 1,196,668 1,535,556 Less: accumulated amortization (106,611) (104,132) Land use rights, net 1,090,057 1,431,424 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INTANGIBLE ASSETS, NET | |
Schedule of Intangible assets and amortization | Intangible assets and their related amortization are as follow (RMB in thousands): As of December 31, 2021 2022 RMB RMB Trademark 1,581 1,230 Computer software 94,712 135,218 Less: accumulated amortization (40,809) (56,848) Intangible assets, net 55,484 79,600 |
OTHER ASSETS -THIRD PARTIES (Ta
OTHER ASSETS -THIRD PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OTHER ASSETS - THIRD PARTIES | |
Schedule of other assets | Other assets are consisted of the follows (RMB in thousands): As of December 31, 2021 2022 RMB RMB Prepayments for purchase of property, plant and equipment 1,859,173 1,162,351 Refund receivable of U.S. countervailing duties and anti-dumping duties 580,058 — Deposit for rent and others 175,297 131,611 Prepayment for warranty insurance premium 111,537 114,088 Prepayment of income tax attributable to intercompany transactions 16,159 15,474 Less: Allowance for credit losses (3,064) (1,855) Total 2,739,160 1,421,669 |
Summary of activity in allowance for credit losses related to deposits | The following table summarizes the activity in the allowance for credit losses related to deposits for the year ended December 31, 2022(RMB in thousands): For the year ended December 31, 2022 RMB At beginning of year 3,064 Impact of adopting ASC Topic 326 — Addition — Reversal (1,209) Writeoff — At end of year 1,855 |
OTHER PAYABLES AND ACCRUALS (Ta
OTHER PAYABLES AND ACCRUALS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
OTHER PAYABLES AND ACCRUALS | |
Schedule of other payables and accruals | Other payables and accruals are consisted of the follows (RMB in thousands): As of December 31, 2021 2022 RMB RMB Payables for purchase of property, plant and equipment 3,073,625 6,412,134 Freight payables 858,027 1,359,813 Accrued utilities, rentals and interest 424,436 629,977 Customs duties 157,655 147,759 Accrued warranty cost 149,164 221,699 Value-added tax and other tax payables 74,784 329,078 Commission payables 24,861 13,587 Contracted labor fees 24,392 20,015 Accrued professional service fees 19,739 34,110 Insurance premium payables 6,839 1,853 Others 30,562 44,359 Total 4,844,084 9,214,384 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
BORROWINGS | |
Schedule of short-term borrowings | Components of short-term borrowings as of December 31, 2021 and 2022 were as follows (RMB in thousands): As of December 31, 2021 2022 RMB RMB Short-term borrowings 11,967,827 10,316,714 Long-term borrowings—current portion 1,371,540 2,102,456 Total short-term borrowings 13,339,367 12,419,170 |
Schedule of type of short-term borrowings | Details of the Group’s short-term borrowings as of December 31, 2022 are (RMB in thousands): Type of loan As of December 31, 2022 Guarantee/Collateral Credit loan 4,055,137 a) Letter of credit loan 2,792,460 a) 256,313 Guaranteed by JinkoSolar Holding b) 167,000 Guaranteed by JinkoSolar Holding and certain shareholders of the Group b) Guaranteed by subsidiaries 50,000 Guaranteed by Jiangxi Jinko and certain shareholders of the Group b) of the Group and third parties 1,942,835 Guaranteed by Jiangxi Jinko b) and/or collateralized on the 1,329,716 Guaranteed by Zhejiang Jinko b) Group’s assets 20,197 Guaranteed by Agricultural Bank of China Shangrao Guangxin Branch b) 25,312 Guaranteed by China Export & Credit Insurance Corporation b) 1,132,645 Financings associated with failed sale-lease back transactions c) 647,555 Guaranteed and collateralized on buildings, equipment and other assets of the Group and shareholders of the Group d) Total 12,419,170 a) As of December 31, 2022, the Group had short-term bank borrowings of RMB 4,055 million credit loans, and RMB 2,792 million letter of credit loans. The remaining short-term bank borrowings of RMB 4,439 million were either guaranteed by other parties and/or collateralized on the Group’s assets, detailed as following: b) Borrowings of RMB 256 million guaranteed by JinkoSolar Holding, RMB 167 million guaranteed by JinkoSolar Holding and certain shareholders of the Group, RMB 50 million guaranteed by Jiangxi Jinko and certain shareholders of the Group, RMB 1,943 million guaranteed by Jiangxi Jinko, RMB 1,330 million guaranteed by Zhejiang Jinko, RMB 20 million guranteed by Agricultural Bank of China Shangrao Guangxin Branch, and RMB 25 million guranteed by China Export & Credit Insurance Corporation, respectively. c) As of December 31, 2022, the Group recorded financings associated with failed sale-lease back transactions with the amount of RMB 1,463 million under long-term borrowings, and RMB 1,133 million as current portion (Note 18). d) RMB 120 million collateralized on the account receivables and inventories of the Group, RMB 528 million collateralized on the Group’s certain building and equipment, including RMB 329 million which were also collateralized on the Group’s certain land use rights, RMB 95 million were also collateralized on the Group’s certain land use rights and inventories. In addition, included in these borrowings there were borrowings of RMB120 million guaranteed by Jinkosolar Holding, RMB100 million guaranteed by JinkoSolar Holding and Zhejiang Jinko, and RMB288 million guaranteed by Jiangxi Jinko. |
Schedule of long-term borrowings | Components of short-term borrowings as of December 31, 2021 and 2022 were as follows (RMB in thousands): As of December 31, 2021 2022 RMB RMB Long-term bank borrowings 590,013 3,329,075 Long-term financings associated with failed sale-leaseback transactions 2,756,452 2,595,686 Other long-term borrowings 7,921,530 9,200,490 Less: Current portion of long-term borrowings (99,256) (969,811) Less: Current portion of financings associated with failed sale-leaseback transactions (1,272,284) (1,132,645) Total long-term borrowings 9,896,455 13,022,795 |
Schedule of long-term future principal repayments | Future principal repayments on the long-term borrowings are as follows (RMB in thousands): Year ending December 31, RMB Year ended December 31 2023 3,862,228 2024 2,875,790 2025 5,085,899 2026 2,110,558 2027 625,033 Thereafter 565,743 Total 15,125,251 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LEASES | |
Schedule of balances for the operating and finance leases where the Group is the lessee | The balances for the operating and finance leases where the Group is the lessee are presented as follows (RMB in thousands): 2021 2022 December 31 December 31 RMB RMB Operating leases: Operating lease liabilities - current 62,515 65,489 Operating lease liabilities - non-current 385,420 339,885 Total operating lease liabilities 447,935 405,374 Operating lease right-of-use assets, net 438,271 396,966 Financing leases: Financing lease liabilities - current 194,939 168,381 Financing lease liabilities - non-current 236,374 69,881 Total financing lease liabilities 431,313 238,262 Financing lease right-of-use assets, net 628,592 558,407 |
Schedule of components of lease expenses | (a) The components of lease expenses were as follows (RMB in thousands): For the years ended December 31, 2021 2022 RMB RMB Lease cost: Amortization of right-of-use assets 135,791 129,869 Interest of lease liabilities 51,575 36,553 Expenses for short-term lease within 12 months 3,052 9,154 Total lease cost 190,418 175,576 |
Schedule of supplemental cash flow information related to leases | (b) Supplemental cash flow information related to leases was as follows (RMB in thousands): For the years ended December 31, 2021 2022 RMB RMB Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows for operating leases 76,400 72,906 Operating cash outflows for finance leases 25,974 19,926 Financing cash outflows for finance leases 286,292 216,722 Total cash paid for amounts included in the measurement of lease liabilities: 388,666 309,554 Lease obligation accrued in exchange for right-of-use assets: Operating lease liabilities 185,472 3,476 Finance lease liabilities 132,188 — Total lease obligation accrued in exchange for right-of-use assets: 317,660 3,476 |
Schedule of supplemental balance sheet information related to leases | (c) Supplemental balance sheet information related to leases was as follows (RMB in thousands) : Operating leases: As of December 31, 2021 2022 Weighted-average remaining lease term 7.35 years 6.21 years Weighted-average discount rate 6.47% 6.46% Financing leases: As of December 31, 2021 2022 Weighted-average remaining lease term 1.94 years 0.94 years Weighted-average discount rate 5.65% 5.55% |
Schedule of operating lease liabilities | Operating leases: Year ending December 31, RMB Year ended December 31, 2023 85,637 2024 84,973 2025 75,863 Thereafter 206,541 Total undiscounted lease payments 453,014 Less: imputed interest 47,640 Total lease liabilities 405,374 |
Schedule of finance lease liabilities | Financing leases: Year ending December 31, RMB Year ended December 31, 2023 236,657 2024 34,252 Total undiscounted lease payments 270,909 Less: imputed interest 32,647 Total lease liabilities 238,262 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
EARNINGS PER SHARE | |
Schedule of Earnings Per Share | Basic earnings per share and diluted earnings per share have been calculated as follows (RMB in thousands, except for share and per share data): For the years ended December 31, 2020 2021 2022 RMB RMB RMB Numerator: Net income 335,255 955,572 1,565,139 Less: Net income attributable to non-controlling interests 104,870 234,554 944,633 Net income attributable to JinkoSolar’s ordinary shareholders 230,385 721,018 620,506 Dilutive effects of convertible senior notes — (308,339) — Dilutive effects of call option (462,752) — — Numerator for diluted income/(loss) per share (232,367) 412,679 620,506 Denominator: Denominator for basic earnings per share - weighted average number of ordinary shares outstanding 178,938,853 190,672,869 198,004,260 Dilutive effects of share options — 540,620 2,404,234 Dilutive effects of convertible notes — 14,506,283 — Dilutive effects of call option (7,500,000) — — Denominator for diluted calculation - weighted average number of ordinary shares outstanding 171,438,853 205,719,772 200,408,494 Basic earnings per share attributable to JinkoSolar’s ordinary shareholders 1.29 3.78 3.13 Diluted earnings/(loss) per share attributable to JinkoSolar’s ordinary shareholders (1.36) 2.01 3.10 |
SHARE BASED COMPENSATION (Table
SHARE BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SHARE BASED COMPENSATION | |
Summary of stock option activity | A summary of the share option activities under the Company’s share-based compensation plan for the years ended December 31, 2020, 2021 and 2022 is as follows (RMB in thousands, except for share, exercise price and contractual term): Number of Weighted-average option Weighted-average remaining Aggregate outstanding exercise price contractual term intrinsic value (USD/share) (in years) (RMB) Balance as of December 31, 2019 4,555,288 3.34 4.73 73,354 Granted — — — — Exercise (3,750,540) 3.32 — — Forfeited (88,000) 3.29 — — Balance as of December 31, 2020 716,748 3.46 4.25 58,836 Granted — — — — Exercise (105,200) 3.29 — — Forfeited (264,012) 3.29 — — Balance as of December 31, 2021 347,536 3.65 3.84 17,373 Granted — — — — Exercise (175,536) 3.35 — — Balance as of December 31, 2022 172,000 3.96 2.69 8,305 Vested as of December 31, 2022 172,000 3.96 2.69 8,305 Vested and exercisable as of December 31, 2022 172,000 3.96 2.69 8,305 |
Summary of non vested restricted stock units | Number of restricted shares Weighted average grant outstanding date fair value (RMB) Unvested as of January 1, 2021 — — Granted 354,000 86.38 Vested (35,400) 86.38 Unvested as of December 31, 2021 318,600 86.38 Granted 16,684,600 72.10 Vested (10,188,740) 72.08 Unvested as of December 31, 2022 6,814,460 72.38 |
Schedule of expense allocation | The total share-based compensation expense of continuing operations for the year ended December 31, 2020, 2021 and 2022 was recorded in the respective items (RMB in thousands): For the years ended December 31, 2020 2021 2022 RMB RMB RMB Costs of revenues 329 131 17,676 Selling expenses 462 131 7,101 General and administrative expenses 145 9,622 974,564 Research and development expenses (13) — 1,528 Total 923 9,884 1,000,869 |
Jinko Solar Co., Ltd. ("Jiangxi Jinko") | |
SHARE BASED COMPENSATION | |
Summary of stock option activity | A summary of share option activities under the Jiangxi Jinko 2022 Plan for the years ended December 31, 2022 is as follows (RMB in thousands, except for share, exercise price and contractual term): Number of Weighted-average option Weighted-average remaining Aggregate outstanding exercise price contractual term intrinsic value (RMB/share) (in years) (RMB) Balance as of December 31, 2021 — — — — Granted 32,149,900 10.78 — — Exercise — — — — Balance as of December 31, 2022 32,149,900 10.78 2.89 124,420 Vested and expected to vest as of December 31, 2022 32,149,900 10.78 2.89 124,420 Vested and exercisable as of December 31, 2022 32,149,900 10.78 2.89 124,420 |
RELATED PARTY TRANSACTIONS AN_2
RELATED PARTY TRANSACTIONS AND BALANCES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS AND BALANCES | |
Schedule of related party balances | Outstanding amounts due from/to related parties as of December 31, 2021 and 2022 were as follows (RMB in thousands): 2021 2022 December 31 December 31 RMB RMB Accounts receivable from related parties: Accounts receivable from JinkoPower for sales of solar modules and others 29,417 139,713 Notes receivables from a related party: Notes receivables from JinkoPower — 282,824 Advances to a related party: Advance to Xinte Silicon for inventory purchase — 56,860 Prepayment and other receivables from related parties: Prepayments to JinkoPower for outsourcing services 11,990 5,664 Other receivables due from JinkoPower for disposal of solar power projects — 12,953 Other receivables due from Sweihan PV Power Company P.S.J.C (“Sweihan PV”, which develops and operates solar power projects in Dubai) for technical services — 1,075 Other receivables from JinkoPower for miscellaneous transactions 5,358 3,413 Subtotal 17,348 23,105 Other assets from related parties: Long-term receivables due from JinkoPower for disposal of solar power projects — 14,603 Guarantee receivables due from JinkoPower 3,292 — Long-term receivables due from Sweihan PV — 37,760 Subtotal 3,292 52,363 Accounts payable due to a related party: Accounts payable due to Jinko-Tiansheng 15,863 — Advances from a related party Advances from JinkoPower — 3,829 Notes payables due to a related party Notes payables due to Xinte Silicon for inventory purchase — 419,500 Other payables due to a related party: Other payables due to JinkoPower for payments on behalf of the Company 2,230 5,964 (1) Balances due to related parties are interest-free, not collateralized, and have no definitive repayment terms. (2) On March 30, 2021, the Company signed an agreement to offset the debts and receivables between the Group and JinkoPower with the aggregate amount of RMB 71 million. |
Schedule of transactions with related parties | Transactions related parties for the year ended December 31, 2020, 2021 and 2022 were as follows (RMB in thousands): For the years ended December 31, 2020 2021 2022 RMB RMB RMB Revenue from sales of products and providing services to related parties Revenue from sales of products to Sweihan PV 51,202 — — Income of financing guarantees 14,688 6,364 — Revenue from sales of products to JinkoPower 5,072 27,099 325,175 Income of project management provided to Sweihan PV 3,721 660 2,979 Rental services provided to JinkoPower 2,177 4,004 5,041 Service expenses and silicon procurement provided by related parties Processing fee of OEM service charged by Jiangsu Jinko-Tiansheng 27,485 5,310 — Solar project management service provided by JinkoPower 9,443 8,753 7,133 Rental services provided by Jiangxi Desun 1,100 — — Electricity fee charged by JinkoPower 3,088 7,725 27,465 Other fees charged by JinkoPower — 16 — Silicon procurement from Xinte Silicon (Note 12) — — 824,785 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES. | |
Schedule of total future payments under these purchase agreements | Year ending December 31, RMB 2023 6,357,915 2024 5,786,393 Thereafter 1,446,598 Total 13,590,906 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
FAIR VALUE MEASUREMENTS | |
Schedule of Investments Measured at Fair Value on Recurring Basis | Fair Value Measurements at Reporting Date Using Quote prices in Balance as of active market Significant other Significant December 31, for identical observable unobservable Description 2021 assets (Level 1) inputs (Level 2) inputs (Level 3) Assets: Foreign exchange forward contracts- receivable 73,532 — 73,532 — Liabilities: Convertible senior notes 1,098,736 — — 1,098,736 Guarantee liabilities 12,142 — — 12,142 Derivative liability interest rate swap 12,294 — — 12,294 Foreign exchange options 2,659 — — 2,659 Fair Value Measurements at Reporting Date Using Quote prices in Balance as of active market Significant other Significant December 31, for identical observable unobservable Description 2022 assets (Level 1) inputs (Level 2) inputs (Level 3) Assets: Foreign exchange forward contracts- receivable 119,625 — 119,625 — Equity securities applying fair value option 178,871 — 178,871 — Available-for-sale securities 104,499 — — 104,499 Liabilities: Convertible senior notes 1,070,699 — — 1,070,699 Foreign exchange forward contracts- payable 59,911 — 59,911 — Foreign exchange options 3,226 — — 3,226 |
Schedule of Reconciliation of Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs | For the year ended December 31, 2020 2021 2022 RMB RMB RMB Balance on January 1, 728,216 1,831,612 1,098,736 Foreign exchange loss/(gain) (38,360) (8,560) 60,038 Change in fair value of convertible senior notes loss/(gain) 1,202,082 (327,762) 12,083 Change in the instrument-specific credit risk gain (60,326) (56,224) (100,158) Conversion of convertible senior notes — (340,330) — Balance on December 31, 1,831,612 1,098,736 1,070,699 For the year ended December 31, 2020 2021 2022 RMB RMB RMB Balance on January 1, 294,178 756,929 — Issuance of call options — — — Foreign exchange gain/(loss) (13,539) 251 — Change in fair value of call options gain/(loss) 476,290 (136,121) — Settlement of call options — (621,059) — Balance on December 31, 756,929 — — For the year ended December 31, 2020 2021 2022 RMB RMB RMB Balance on January 1, — (12,924) (2,659) Addition of foreign exchange options (9,316) (8,544) 3,596 Change in fair value of foreign exchange options gain/(loss) (3,608) 18,809 (4,163) Balance on December 31, (12,924) (2,659) (3,226) |
Schedule of changes in Level 3 fair value of available-for-sale securities | For the year ended December 31, 2020 2021 2022 RMB RMB RMB Balance on January 1, — — — Addition — — 100,000 Interest accrual — — 3,526 Change in fair value — — 973 Balance on December 31, — — 104,499 |
Schedule of Change in Fair Value of rate swap Derivatives | For the year ended December 31, 2020 2021 2022 RMB RMB RMB Balance on January 1, 61,272 — 12,294 Change in fair value of interest rate swap 78,878 — — Change in fair value of interest rate swap cash flow hedges — 12,294 — Cash settlement (140,150) — (12,294) Balance on December 31, — 12,294 — |
Schedule of Change in Fair Value of Derivatives | For the year ended December 31, 2020 2021 2022 RMB RMB RMB Balance on January 1, 72,019 57,332 12,142 Additions — — — Amortization (14,687) (6,365) — Cancellation — (38,825) (12,142) Balance on December 31, 57,332 12,142 — Foreign exchange forward Type of derivatives For the year ended contracts Convertible Interest Call Foreign exchange Equity securities December 31, Realized Unrealized senior notes Rate swap Option Options Applying fair value option Total In RMB 2020 61,380 129,806 (1,202,082) (78,878) 476,290 (3,608) — (617,092) 2021 393,523 (104,643) 327,762 — (136,121) 18,809 — 499,330 2022 (150,538) (13,818) (12,083) — — (4,163) 101,871 (78,731) |
Level 3 [Member] | |
FAIR VALUE MEASUREMENTS | |
Summary of significant unobservable inputs adopted in the valuation of Level 3 instruments | Unobservable inputs of convertible senior notes Expected volatility 75.47 % Risk free interest rate 4.6 % Discount rate 29.23 % Unobservable inputs of available-for-sale securities Risk free interest rate 2.06% - 2.21% Discount rate 5.37% - 5.78% Unobservable inputs of foreign exchange option Expected volatility 8.13% - 10.00 % Risk free interest rate 1.09% - 2.03 % |
ADDITIONAL INFORMATION-CONDEN_2
ADDITIONAL INFORMATION-CONDENSED FINANCIAL STATEMENTS OF THE PARENT COMPANY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ADDITIONAL INFORMATION-CONDENSED FINANCIAL STATEMENTS OF THE PARENT | |
Schedule of condensed statements of operations | For the year ended December 31 2020 2021 2022 RMB RMB RMB USD (note 2 (al)) (RMB in thousands) Net revenue — — — — Cost of revenues — — — — Gross profit — — — — Total operating income/(expenses) 1,227 (6,150) (593,204) (86,007) Other income, net 5,064 1,737 — — Income/(loss) from operations 6,291 (4,413) (593,204) (86,007) Share of income from subsidiaries and affiliates 1,015,006 512,873 1,264,720 183,368 Interest income/(expenses), net 8,596 36,613 (19,867) (2,880) Exchange loss (73,716) (14,085) (18,586) (2,694) Change in fair value of convertible senior notes and call option (725,792) 191,641 (12,083) (1,752) Income before income taxes 230,385 722,629 620,980 90,035 Income tax expenses — (1,611) (474) (69) Net income attributable to JinkoSolar Holding Co., Ltd.’s ordinary shareholders 230,385 721,018 620,506 89,966 |
Schedule of condensed balance sheets | December 31, 2021 December 31, 2022 RMB RMB USD (note 2 (al)) (RMB in thousands) ASSETS Current assets: Cash and cash equivalent 34,767 492,440 71,397 Due from subsidiaries 2,532,984 728,019 105,553 Due from related parties 3,454 3,454 501 Other current assets 1,562 1,671 242 Total current assets 2,572,767 1,225,584 177,693 Investments in subsidiaries 9,781,036 16,189,323 2,347,231 Due from subsidiaries – non-current 1,262,124 — — Due from related parties - non current 3,292 — — Total assets 13,619,219 17,414,907 2,524,924 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Due to subsidiaries 1,445,183 — — Due to related parties 2,500 — — Other current liabilities 13,377 6,973 1,011 Total current liabilities 1,461,060 6,973 1,011 Due to related parties – non-current 9,642 — — Convertible senior notes 1,098,736 1,070,699 155,237 Total liabilities 2,569,438 1,077,672 156,248 Shareholders’ equity: Ordinary shares (USD $0.00002 par value, 500,000,000 shares authorized, 193,770,753 and 204,135,029 shares issued as of December 31, 2021 and December 31, 2022, respectively, 190,824,913 and 201,189,189 shares outstanding as of December 31, 2021 and December 31, 2022, respectively) 26 28 4 Additional paid-in capital 5,617,923 9,912,931 1,437,240 Accumulated other comprehensive loss (154,375) 217,563 31,544 Treasury stock, at cost; 2,945,840 ordinary shares as of December 31, 2021 and December 31, 2022 (43,170) (43,170) (6,259) Retained earnings 5,629,377 6,249,883 906,148 Total shareholders’ equity 11,049,781 16,337,235 2,368,677 Total liabilities and shareholders’ equity 13,619,219 17,414,907 2,524,924 |
Schedule of condensed cash flows | For the year ended December 31, 2020 2021 2022 RMB RMB RMB USD (note 2 (al)) (RMB in thousands) Cash flows from operating activities: Net income 230,385 721,018 620,506 89,966 Adjustments to reconcile net income to net cash used in operating activities: Sharebase compensation charges — — 579,368 84,000 Change in fair value of convertible senior notes 1,202,082 (327,762) 12,083 1,752 Change in fair value of call option (476,290) 136,121 — — Share of income from subsidiaries (1,015,006) (512,873) (1,264,720) (183,368) Guarantee income (5,064) — — — Exchange loss 73,716 14,085 18,586 2,694 Changes in operating assets and liabilities: Decrease in due from subsidiaries 592,425 6,088 1,465,778 212,518 Decrease in due from a related party — — 3,292 477 (Increase)/decrease in other current assets (9,437) 165 (1,279) (186) Decrease in other non-current assets — 11,181 — — Decrease in due to subsidiaries (658,106) (117) (1,445,183) (209,532) Decrease in due to a related party — — (12,142) (1,760) Increase/(decrease) in other current liabilities 9,773 1,978 (6,403) (928) Net cash (used in)/provided by operating activities (55,522) 49,884 (30,114) (4,367) Cash flows from investing activities: Cash collection for loans from subsidiaries — — 735,673 106,662 Cash paid for loans to subsidiaries — (1,262,124) (289,620) (41,991) Net cash used in investing activities — (1,262,124) 446,053 64,671 Cash flows from financing activities: Proceeds from exercise of share options 114,758 10,185 5,024 729 Proceeds from exercise of call option — 621,059 — — Proceeds from issuance of ordinary shares — 641,065 — — Repurchase of shares (29,294) — — — Net cash provided by financing activities 85,464 1,272,309 5,024 729 Effect of foreign exchange rate changes on cash and cash equivalents (14,992) (44,809) 36,710 5,323 Net increase in cash and cash equivalents 14,950 15,260 457,673 66,356 Cash and cash equivalents, beginning of year 4,557 19,507 34,767 5,041 Cash and cash equivalents, end of year 19,507 34,767 492,440 71,397 Supplemental disclosure of non-cash investing and financing cash flow information Proceeds from exercise of share options received in subsequent period 9,143 1,169 — — Conversion of convertible senior notes to ordinary shares — 340,330 — — Transfer receivable due from subsidiaries to investments in subsidiaries — — 1,160,000 168,184 Receivables related to At-The-Market offering 641,065 — — — |
ORGANIZATION AND NATURE OF OP_3
ORGANIZATION AND NATURE OF OPERATIONS (Details) ¥ in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Oct. 31, 2020 CNY (¥) | Oct. 31, 2020 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2020 USD ($) | Jun. 30, 2020 CNY (¥) | Sep. 30, 2018 CNY (¥) | Jun. 30, 2018 CNY (¥) | Dec. 31, 2016 CNY (¥) | Dec. 31, 2016 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 CNY (¥) | Dec. 31, 2022 | |
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||||
Repurchase of non-controlling interest | ¥ 286,686 | ||||||||||||
Repurchase of non-controlling interest | 286,687 | ||||||||||||
Government Background Companies | |||||||||||||
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||||
Capital injections | ¥ 846,000 | ||||||||||||
Outstanding consideration received | ¥ 846,000 | ||||||||||||
JinkoSolar Technology (Haining) Co., Ltd. ("Haining Jinko") | |||||||||||||
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||||
Percentage of ownership | 56.40% | 45.90% | |||||||||||
Repurchase of non-controlling interest | 287,000 | ||||||||||||
Repurchase of non-controlling interest | 21,000 | ||||||||||||
JinkoSolar Technology (Haining) Co., Ltd. ("Haining Jinko") | Government Background Companies | |||||||||||||
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||||
Capital injections | ¥ 517,000 | ¥ 517,000 | |||||||||||
JinkoSolar (Sichuan) Co., Ltd. | |||||||||||||
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||||
Capital injections | 200,000 | ¥ 800,000 | |||||||||||
Percentage of ownership | 38.40% | ||||||||||||
Jinko Chuzhou | |||||||||||||
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||||
Percentage of ownership | 32.20% | ||||||||||||
Jinko Chuzhou | Government Background Companies | |||||||||||||
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||||
Capital injections | 300,000 | 550,000 | |||||||||||
Jinko Yiwu | |||||||||||||
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||||
Percentage of ownership | 32.20% | ||||||||||||
Jinko Yiwu | Government Background Companies | |||||||||||||
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||||
Capital injections | 365,000 | 400,000 | |||||||||||
Jinko ShangRao | |||||||||||||
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||||
Percentage of ownership | 32.20% | ||||||||||||
Jinko ShangRao | Government Background Companies | |||||||||||||
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||||
Capital injections | ¥ 1,902,000 | ||||||||||||
Rui Xu Co., Ltd. | |||||||||||||
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||||
Capital injections | ¥ 20,000 | ||||||||||||
Jinko Huineng Technology Services Co., Ltd | |||||||||||||
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||||
Investments in subsidiaries | ¥ 10,000 | $ 2 | |||||||||||
Zhejiang Jinko Financial Leasing | |||||||||||||
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||||
Gain (Loss) on disposal | ¥ 15,000 | $ 2 | |||||||||||
Investments in subsidiaries | ¥ 183,000 | $ 26 | |||||||||||
Transaction amount collected | $ 42 | ¥ 128,000 | |||||||||||
JinkoSolar International Development Limited | |||||||||||||
ORGANIZATION AND NATURE OF OPERATIONS | |||||||||||||
Investments in subsidiaries | ¥ 3,100,000 | $ 461 |
ORGANIZATION AND NATURE OF OP_4
ORGANIZATION AND NATURE OF OPERATIONS - Schedule of Subsidiaries (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2019 | |
JinkoSolar Investment Limited ("Paker") | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Nov. 10, 2006 | |
Percentage of ownership | 100% | |
Jinko Solar Co., Ltd. ("Jiangxi Jinko") | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Dec. 13, 2006 | |
Percentage of ownership | 58.60% | |
Zhejiang Jinko Solar Co., Ltd ("Zhejiang Jinko") | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Jun. 30, 2009 | |
Percentage of ownership | 58.60% | |
Jinko Solar Import and Export Co., Ltd. ("Jinko Import and Export") | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Dec. 24, 2009 | |
Percentage of ownership | 58.60% | |
JinkoSolar GmbH ("Jinko GmbH") | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Apr. 01, 2010 | |
Percentage of ownership | 58.60% | |
Zhejiang Jinko Solar Trading Co., Ltd. | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Jun. 13, 2010 | |
Percentage of ownership | 58.60% | |
Xinjiang Jinko Solar Co., Ltd. | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | May 30, 2016 | |
Percentage of ownership | 58.60% | |
Yuhuan Jinko Solar Co., Ltd.("Yuhuan") | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Jul. 29, 2016 | |
Percentage of ownership | 58.60% | |
JinkoSolar (U.S.) Inc. ("Jinko US") | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Aug. 19, 2010 | |
Percentage of ownership | 58.60% | |
Jiangxi Photovoltaic Materials Co., Ltd. ("Jiangxi Materials") | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Dec. 01, 2010 | |
Percentage of ownership | 58.60% | |
JinkoSolar (Switzerland) AG ("Jinko Switzerland") | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | May 03, 2011 | |
Percentage of ownership | 58.60% | |
JinkoSolar (US) Holdings Inc. ("Jinko US Holding") | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Jun. 07, 2011 | |
Percentage of ownership | 58.60% | |
JinkoSolar Italy S.R.L. ("Jinko Italy") | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Jul. 08, 2011 | |
Percentage of ownership | 58.60% | |
Jinko Solar Canada Co., Ltd ("Jinko Canada") | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Nov. 18, 2011 | |
Percentage of ownership | 58.60% | |
Jinko Solar Australia Holdings Co. Pty Ltd ("Jinko Australia") | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Dec. 07, 2011 | |
Percentage of ownership | 58.60% | |
Jinko Solar Japan K.K. ("JinkoSolar Japan") | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | May 21, 2012 | |
Percentage of ownership | 58.60% | |
Jinko Solar (Shanghai) Management Co., Ltd | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Jul. 25, 2012 | |
Percentage of ownership | 58.60% | |
Wide Wealth Group Holding Limited | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Jun. 11, 2012 | |
Percentage of ownership | 100% | |
Canton Best Limited ("Canton Best BVI") | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Sep. 16, 2013 | |
Percentage of ownership | 100% | |
Jinko Solar Technology SDN.BHD. ("JinkoSolar Malaysia") | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Jan. 21, 2015 | |
Percentage of ownership | 58.60% | |
JinkoSolar International Development Limited | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Aug. 28, 2015 | |
Percentage of ownership | 100% | |
JinkoSolar Middle East DMCC | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Nov. 06, 2016 | |
Percentage of ownership | 58.60% | |
JinkoSolar Trading Privated Limited | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Feb. 06, 2017 | |
Percentage of ownership | 58.60% | |
JinkoSolar LATAM Holding Limited | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Aug. 22, 2017 | |
Percentage of ownership | 100% | |
JinkoSolar U.S. Industrial Inc. | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Nov. 16, 2017 | |
Percentage of ownership | 58.60% | |
JinkoSolar Technology (Haining) Co., Ltd. ("Haining Jinko") | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Dec. 15, 2017 | |
Percentage of ownership | 45.90% | 56.40% |
Poyang Ruixin Information Technology Co Ltd | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Dec. 19, 2017 | |
Percentage of ownership | 58.60% | |
Jinko Solar Korea Co., Ltd. | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Dec. 03, 2018 | |
Percentage of ownership | 58.60% | |
JinkoSolar (Sichuan) Co., Ltd. | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Feb. 18, 2019 | |
Percentage of ownership | 38.40% | |
JinkoSolar (Qinghai) Co., Ltd. | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Apr. 03, 2019 | |
Percentage of ownership | 32.20% | |
Jinko Yiwu | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Sep. 19, 2019 | |
Percentage of ownership | 32.20% | |
Jinko PV Material Supply SDN. BHD | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Sep. 23, 2019 | |
Percentage of ownership | 58.60% | |
JinkoSolar Vietnam Co., Ltd. | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Sep. 26, 2019 | |
Percentage of ownership | 58.60% | |
Jinko Chuzhou | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Dec. 26, 2019 | |
Percentage of ownership | 32.20% | |
Rui Xu Co., Ltd. ("Rui Xu") | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Jul. 24, 2019 | |
Percentage of ownership | 35.20% | |
Zhejiang New Materials Co., Ltd. ("Zhejiang New Materials") | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Mar. 24, 2020 | |
Percentage of ownership | 58.60% | |
Jinko ShangRao | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Apr. 17, 2020 | |
Percentage of ownership | 32.20% | |
Jinko Solar Denmark ApS | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | May 28, 2020 | |
Percentage of ownership | 58.60% | |
JinkoSolar Hong Kong Limited | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Aug. 17, 2020 | |
Percentage of ownership | 58.60% | |
Jinko Solar (Malaysia) SDN BHD | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Aug. 28, 2020 | |
Percentage of ownership | 58.60% | |
JinkoSolar (Chuxiong) Co., Ltd. | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Sep. 25, 2020 | |
Percentage of ownership | 58.60% | |
Yiwu New Materials Co., Ltd. | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Oct. 14, 2020 | |
Percentage of ownership | 58.60% | |
JinkoSolar (Yushan) Co., Ltd. ("Jinko Yushan") | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Sep. 26, 2021 | |
Percentage of ownership | 46.90% | |
Fengcheng Jinko PV Materials Co., Ltd | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Aug. 11, 2021 | |
Percentage of ownership | 58.60% | |
JinkoSolar (Feidong) Co., Ltd. ("Jinko Feidong") | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Sep. 23, 2021 | |
Percentage of ownership | 32.20% | |
JinkoSolar (Jinchang) Co., Ltd. ("Jinko Jinchang") | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Sep. 24, 2021 | |
Percentage of ownership | 58.60% | |
JinkoSolar (Poyang) Co., Ltd. ("Jinko Poyang") | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Dec. 01, 2021 | |
Percentage of ownership | 58.60% | |
Shangrao Changxin Enterprise Management Center LP. | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Dec. 16, 2021 | |
Percentage of ownership | 100% | |
Shangrao Changxin No. 1 Enterprise Management Center LP. | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Feb. 17, 2022 | |
Percentage of ownership | 100% | |
Shangrao Changxin No. 2 Enterprise Management Center LP. | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Feb. 17, 2022 | |
Percentage of ownership | 100% | |
Shangrao Changxin No. 3 Enterprise Management Center LP. | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Jun. 15, 2022 | |
Percentage of ownership | 100% | |
Shangrao Changxin No. 5 Enterprise Management Center LP. | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Jun. 15, 2022 | |
Percentage of ownership | 100% | |
Shangrao Changxin No. 6 Enterprise Management Center LP. | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Oct. 25, 2022 | |
Percentage of ownership | 100% | |
Jiaxing Jinyue Phase I Venture Capital Partnership | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Apr. 26, 2022 | |
Percentage of ownership | 78.20% | |
Shangrao Jinko PV Manufacturing Co., Ltd | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Percentage of ownership | 58.60% | |
Shangrao Guangxin Jinko PV Manufacturing Co., Ltd. | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Mar. 23, 2022 | |
Percentage of ownership | 58.60% | |
Jinko Energy Storage Technology Co., Ltd. | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Percentage of ownership | 58.60% | |
Jiangxi Jinko Energy Storage Co., Ltd | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | May 26, 2022 | |
Percentage of ownership | 58.60% | |
Jinko Solar (Vietnam) Industries Company Limited | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Mar. 29, 2021 | |
Percentage of ownership | 58.60% | |
JinkoSolar (Leshan) Co., Ltd. ("Jinko Leshan") | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Apr. 25, 2021 | |
Percentage of ownership | 58.60% | |
JinkoSolar (Anhui) Co., Ltd. ("Jinko Anhui") | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Date of Incorporation/Acquisition | Sep. 03, 2021 | |
Percentage of ownership | 32.20% |
PRINCIPAL ACCOUNTING POLICIES -
PRINCIPAL ACCOUNTING POLICIES - Additional Information (Details) ¥ in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended | ||||||
Jan. 01, 2018 USD ($) | Sep. 30, 2020 CNY (¥) | Dec. 31, 2022 CNY (¥) segment | Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | Jan. 01, 2020 CNY (¥) | |
Foreign currency translation | ||||||||
Cash, cash equivalents, and restricted cash | ¥ 14,243,000 | ¥ 16,672,000 | ||||||
Current expected credit losses | ||||||||
Retained earnings | 6,249,883 | 5,629,377 | $ 906,148 | |||||
Expected credit loss provision, current | 584,127 | 323,071 | ||||||
Expected credit loss provision, non-current assets | 562 | |||||||
Expected credit loss provision | 285,394 | $ 41,378 | 82,427 | ¥ 14,086 | ||||
Short-term and long-term advances to suppliers | ||||||||
Provision for advance to suppliers | 0 | 0 | 0 | |||||
Provision for loss on long-term contracts | ¥ 0 | 0 | 0 | |||||
Project assets | ||||||||
Project assets, useful life | 20 years | 20 years | ||||||
Impairment | 123,000 | 94,000 | ||||||
Depreciation expenses of project assets | ¥ 0 | $ 0 | 32,559 | 52,830 | ||||
Interest Capitalization | ||||||||
Interest expenses | 1,150,128 | 878,908 | 705,159 | |||||
Interest and other income | ¥ 589,000 | 214,000 | 217,000 | |||||
Revenue recognition | ||||||||
Period of customers to make full payment | 90 days | 90 days | ||||||
Period of customers to make payment after delivery | 180 days | 180 days | ||||||
Retain percentage, minimum | 5% | 5% | ||||||
Retain percentage, maximum | 10% | 10% | ||||||
Retainage | ¥ 23,000 | 24,000 | 27,000 | |||||
Capitalized contract cost | ¥ 0 | 0 | 0 | |||||
Practical expedients and exemption | true | true | ||||||
Number of operating segments | segment | 1 | 1 | ||||||
Warranty cost | ||||||||
Product defect, minimum warranty | 5 years | 5 years | ||||||
Product defect, maximum warranty | 10 years | 10 years | ||||||
Product decline, minimum warranty | 10 years | 10 years | ||||||
Product decline, maximum warranty | 25 years | 25 years | ||||||
Product decline, minimum percentage | 10% | 10% | ||||||
Product decline, maximum percentage | 20% | 20% | ||||||
Product failure rate over warranty period | 1% | 1% | ||||||
Past years matching actual claims with expected estimates. | 2 years | 2 years | ||||||
Warranty liability | 104,000 | 124,000 | ||||||
Accrue (reversal) to selling and marketing expense | ¥ 74,802 | (103,788) | (123,942) | |||||
Warranty cost expenses | 773,000 | 390,000 | 363,000 | |||||
Utilization of warranty accruals | 212,000 | 171,000 | 99,000 | |||||
Amount compensated by the supplier | ¥ 83,000 | |||||||
Uncertain tax positions | 0 | 0 | ||||||
Government grants | ||||||||
Subsidy income | 1,089,435 | $ 157,953 | 465,685 | 191,981 | ||||
Government grants related to assets | 1,469,000 | 291,000 | 20,000 | |||||
Deferred revenue | ¥ 0 | 200,000 | $ 0 | |||||
Convenience translation | ||||||||
Exchange rate | 6.8972 | 6.8972 | ||||||
ASC 606 | ||||||||
Revenue recognition | ||||||||
Retainage | ¥ 400 | 3,000 | 29,000 | |||||
ASC 606 | Adjustment | ||||||||
Revenue recognition | ||||||||
Retained earnings | $ | $ 0 | |||||||
ASU No. 2016-13 | ||||||||
Current expected credit losses | ||||||||
Retained earnings | ¥ 7,000 | |||||||
Allowance for accounts receivables-third parties | 31,000 | |||||||
Allowance for accounts receivables- related parties | 15,000 | |||||||
Allowance for other receivables and other current/non-current assets | 9,000 | |||||||
Expected credit loss provision, current | 600,000 | 331,000 | 324,000 | 307,000 | ||||
Expected credit loss provision, non-current assets | 2,000 | 4,000 | 2,000 | ¥ 5,000 | ||||
Expected credit loss provision | 285,000 | 82,000 | 14,000 | |||||
Electricity | ||||||||
Cost of revenue | ||||||||
Cost of electricity sales | 0 | 31,000 | 40,000 | |||||
Shipping and Handling | ||||||||
Cost of revenue | ||||||||
Cost of electricity sales | 5,161,000 | 2,048,000 | 1,631,000 | |||||
Revenue from generated electricity | ||||||||
Project assets | ||||||||
Incidental revenue | ¥ 47,000 | 0 | 8,000 | |||||
Minimum | ||||||||
Revenue recognition | ||||||||
Percentage of domestic customers to make full payment | 90% | 90% | ||||||
Retainage Period | 1 year | 1 year | ||||||
Percentage of revenue recognized | 90% | |||||||
Maximum | ||||||||
Revenue recognition | ||||||||
Percentage of domestic customers to make full payment | 95% | 95% | ||||||
Retainage Period | 2 years | 2 years | ||||||
Percentage of revenue recognized | 95% | |||||||
Construction projects of continuing operation | ||||||||
Interest Capitalization | ||||||||
Interest capitalized | ¥ 71,000 | ¥ 41,000 | ¥ 29,000 | |||||
Buildings | ||||||||
Short-term and long-term advances to suppliers | ||||||||
Property, plant and equipment, estimated useful life | 20 years | 20 years | ||||||
Machinery and equipment | Minimum | ||||||||
Short-term and long-term advances to suppliers | ||||||||
Property, plant and equipment, estimated useful life | 5 years | 5 years | ||||||
Machinery and equipment | Maximum | ||||||||
Short-term and long-term advances to suppliers | ||||||||
Property, plant and equipment, estimated useful life | 10 years | 10 years | ||||||
Furniture, fixture and office equipment | Minimum | ||||||||
Short-term and long-term advances to suppliers | ||||||||
Property, plant and equipment, estimated useful life | 3 years | 3 years | ||||||
Furniture, fixture and office equipment | Maximum | ||||||||
Short-term and long-term advances to suppliers | ||||||||
Property, plant and equipment, estimated useful life | 5 years | 5 years | ||||||
Motor vehicles | Minimum | ||||||||
Short-term and long-term advances to suppliers | ||||||||
Property, plant and equipment, estimated useful life | 4 years | 4 years | ||||||
Motor vehicles | Maximum | ||||||||
Short-term and long-term advances to suppliers | ||||||||
Property, plant and equipment, estimated useful life | 5 years | 5 years | ||||||
Land use rights | ||||||||
Interest Capitalization | ||||||||
Intangible asset, useful life, minimum | 50 years | 50 years | ||||||
Intangible asset, useful life, maximum | 70 years | 70 years | ||||||
Purchased software and trademark registration fees | ||||||||
Interest Capitalization | ||||||||
Intangible asset, useful life, minimum | 5 years | 5 years | ||||||
Intangible asset, useful life, maximum | 10 years | 10 years |
PRINCIPAL ACCOUNTING POLICIES_3
PRINCIPAL ACCOUNTING POLICIES - Schedule of Cash, cash equivalents and restricted cash (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) |
PRINCIPAL ACCOUNTING POLICIES | ||||||
Cash and cash equivalents | ¥ 10,243,500 | $ 1,485,168 | ¥ 8,321,415 | |||
Restricted cash | 1,027,454 | 148,967 | 602,044 | |||
Cash and cash equivalents included in held-for-sale assets | 173,787 | |||||
Total | ¥ 11,270,954 | $ 1,634,135 | ¥ 9,097,246 | $ 1,318,977 | ¥ 8,074,772 | ¥ 6,273,958 |
PRINCIPAL ACCOUNTING POLICIES_4
PRINCIPAL ACCOUNTING POLICIES - Movement of accrued warranty cost (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
PRINCIPAL ACCOUNTING POLICIES | |||
At beginning of year | ¥ 1,007,805 | ¥ 892,131 | ¥ 751,440 |
Additions | 773,498 | 390,238 | 363,159 |
Utilization | (212,130) | (170,776) | (98,526) |
Accrue (reversal) to selling and marketing expense | 74,802 | (103,788) | (123,942) |
At end of year | ¥ 1,643,975 | ¥ 1,007,805 | ¥ 892,131 |
REVENUES - Schedule of revenues
REVENUES - Schedule of revenues by product (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) Plant | Mar. 31, 2020 CNY (¥) MWh Plant | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
REVENUES | ||||||
Total revenues | ¥ 31,000 | ¥ 83,127,296 | $ 12,052,325 | ¥ 40,826,521 | ¥ 35,129,459 | |
Agreement to sell number of solar power plants | Plant | 2 | |||||
Number of solar power plants reclassified as assets/liabilities held for sale | Plant | 2 | |||||
Sales of solar modules | ||||||
REVENUES | ||||||
Total revenues | 80,224,354 | 37,737,383 | 32,556,394 | |||
Sales of solar projects | ||||||
REVENUES | ||||||
Total revenues | ¥ 1,198,000 | 31,400 | 0 | 1,197,713 | ||
Quantity of solar modules sold | MWh | 155 | |||||
Sales of silicon wafers | ||||||
REVENUES | ||||||
Total revenues | 466,553 | 1,152,055 | 452,141 | |||
Sales of solar cells | ||||||
REVENUES | ||||||
Total revenues | 1,024,114 | 606,582 | 344,510 | |||
Sales of other solar materials | ||||||
REVENUES | ||||||
Total revenues | 1,380,875 | 1,043,760 | 478,184 | |||
Processing service fees | ||||||
REVENUES | ||||||
Total revenues | 0 | 186,045 | 0 | |||
Revenue from generated electricity | ||||||
REVENUES | ||||||
Total revenues | 0 | 100,696 | 100,517 | |||
Incidental revenue | ¥ 47,000 | ¥ 0 | ¥ 8,000 |
REVENUES - Schedule of revenu_2
REVENUES - Schedule of revenues by location (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
REVENUES | |||||
Total revenues | ¥ 31,000 | ¥ 83,127,296 | $ 12,052,325 | ¥ 40,826,521 | ¥ 35,129,459 |
China | |||||
REVENUES | |||||
Total revenues | 34,839,410 | 10,134,888 | 6,370,975 | ||
North America | |||||
REVENUES | |||||
Total revenues | 3,727,493 | 6,621,799 | 10,098,116 | ||
Europe | |||||
REVENUES | |||||
Total revenues | 19,637,777 | 7,481,581 | 4,644,487 | ||
Asia Pacific | |||||
REVENUES | |||||
Total revenues | 11,274,447 | 10,239,162 | 9,603,211 | ||
Rest of the world | |||||
REVENUES | |||||
Total revenues | ¥ 13,648,169 | ¥ 6,349,091 | ¥ 4,412,670 |
INTEREST EXPENSES, NET (Details
INTEREST EXPENSES, NET (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
INTEREST EXPENSES, NET | ||||
Interest expenses | ¥ 1,150,128 | ¥ 878,908 | ¥ 705,159 | |
Less: Interest capitalization | (70,719) | (40,588) | (29,307) | |
Less: Interest income | (588,706) | $ (85,354) | (214,291) | (216,618) |
Total | ¥ 490,703 | ¥ 624,029 | ¥ 459,234 |
OTHER INCOME, NET - Schedule Of
OTHER INCOME, NET - Schedule Of Other Nonoperating Income Expense (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OTHER INCOME, NET | |||
Guarantee income | ¥ 0 | ¥ 6,365 | ¥ 14,687 |
Donations | (6,824) | (4,454) | (12,395) |
Disposal of Tiansheng | ¥ 12,474 | ||
Disposal of Tiansheng | Other Income Expense Net | ||
Disposal of solar power project in Argentina | ¥ 1,758 | ||
Others | (5,837) | ||
Total | ¥ 1,571 | ¥ 1,911 | ¥ 2,292 |
Minimum [Member] | |||
OTHER INCOME, NET | |||
liability term | 1 year | ||
Maximum [Member] | |||
OTHER INCOME, NET | |||
liability term | 16 years |
TAXATION (Details)
TAXATION (Details) ¥ in Thousands | 12 Months Ended | ||||||||
Jan. 01, 2008 | Dec. 31, 2030 | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2017 | Dec. 31, 2019 CNY (¥) | |
TAXATION | |||||||||
Federal corporate income tax rate | 25% | 25% | 25% | ||||||
Deferred tax liabilities related to the cumulative undistributed earnings | ¥ 52,173 | ||||||||
Utilization and reversal of valuation allowances | 111,296 | ¥ 8,390 | ¥ 44,896 | ||||||
Valuation allowance | ¥ 243,141 | ¥ 217,124 | ¥ 136,847 | ¥ 144,317 | |||||
Percentage of unrecognized deferred tax liability | 10 | 10 | 10 | ||||||
Additional income tax deduction | ¥ 107,000 | ¥ 74,000 | ¥ 83,000 | ||||||
Cayman Islands | JinkoPower | |||||||||
TAXATION | |||||||||
Federal corporate income tax rate | 10% | ||||||||
JAPAN | |||||||||
TAXATION | |||||||||
Federal corporate income tax rate | 37.60% | ||||||||
SWITZERLAND | |||||||||
TAXATION | |||||||||
Federal corporate income tax rate | 10% | 9.57% | 11.60% | ||||||
GERMANY | |||||||||
TAXATION | |||||||||
Federal corporate income tax rate | 33% | ||||||||
ITALY | |||||||||
TAXATION | |||||||||
Federal corporate income tax rate | 27.90% | ||||||||
China | |||||||||
TAXATION | |||||||||
Federal corporate income tax rate | 25% | ||||||||
Dividend distribution withholding tax | 10% | ||||||||
Statutory reserves | ¥ 6,635,000 | ¥ 4,928,000 | ¥ 3,879,000 | ||||||
Deferred tax liability reinvested earnings | ¥ 663,000 | ¥ 493,000 | ¥ 388,000 | ||||||
China | Enterprise in the Encouraged Industry | Xinjiang Jinko Solar Co., Ltd. ("Xinjiang Jinko") [Member] | |||||||||
TAXATION | |||||||||
Reduced statutory rate | 15% | 15% | |||||||
China | High and New Technology Enterprise | |||||||||
TAXATION | |||||||||
Federal corporate income tax rate | 15% | ||||||||
China | Forecast | Enterprise in the Encouraged Industry | |||||||||
TAXATION | |||||||||
Federal corporate income tax rate | 15% | ||||||||
China | Forecast | High and New Technology Enterprise | |||||||||
TAXATION | |||||||||
Federal corporate income tax rate | 15% | 15% | |||||||
China | Forecast | High and New Technology Enterprise | Xinjiang Jinko Solar Co., Ltd. ("Xinjiang Jinko") [Member] | |||||||||
TAXATION | |||||||||
Federal corporate income tax rate | 15% | ||||||||
HONG KONG | |||||||||
TAXATION | |||||||||
Federal corporate income tax rate | 16.50% | ||||||||
Dividend distribution withholding tax | 5% | ||||||||
HONG KONG | Minimum [Member] | |||||||||
TAXATION | |||||||||
Federal corporate income tax rate | 25% | ||||||||
PORTUGAL | |||||||||
TAXATION | |||||||||
Federal corporate income tax rate | 22.50% | ||||||||
Denmark | |||||||||
TAXATION | |||||||||
Federal corporate income tax rate | 22% | ||||||||
USA | |||||||||
TAXATION | |||||||||
Federal corporate income tax rate | 21% | ||||||||
USA | Minimum [Member] | |||||||||
TAXATION | |||||||||
Federal corporate income tax rate | 0.75% | ||||||||
USA | Maximum [Member] | |||||||||
TAXATION | |||||||||
Federal corporate income tax rate | 9.99% | ||||||||
CANADA | |||||||||
TAXATION | |||||||||
Federal corporate income tax rate | 15% | ||||||||
State/Province tax rate | 12% | ||||||||
AUSTRALIA | |||||||||
TAXATION | |||||||||
Federal corporate income tax rate | 30% | ||||||||
BRAZIL | |||||||||
TAXATION | |||||||||
Federal corporate income tax rate | 34% | ||||||||
MEXICO | |||||||||
TAXATION | |||||||||
Federal corporate income tax rate | 30% | ||||||||
Malaysia | |||||||||
TAXATION | |||||||||
Federal corporate income tax rate | 24% | ||||||||
Income Tax Holiday, Description | a five year 100% tax exemption | ||||||||
Argentina | |||||||||
TAXATION | |||||||||
Federal corporate income tax rate | 35% | ||||||||
Korea | |||||||||
TAXATION | |||||||||
Federal corporate income tax rate | 10% | 22% |
TAXATION - Composition of Incom
TAXATION - Composition of Income Tax Expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
TAXATION | ||||
Income/(loss) before income taxes | ¥ 1,976,709 | $ 286,596 | ¥ 1,089,903 | ¥ 566,372 |
Cayman Islands | ||||
TAXATION | ||||
Income/(loss) before income taxes | (639,136) | 199,956 | (784,811) | |
China | ||||
TAXATION | ||||
Income/(loss) before income taxes | 2,743,467 | 1,120,667 | 444,368 | |
Other countries | ||||
TAXATION | ||||
Income/(loss) before income taxes | ¥ (127,622) | ¥ (230,720) | ¥ 906,815 |
TAXATION - Current and Deferred
TAXATION - Current and Deferred Income Taxes (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
TAXATION | ||||
PRC | ¥ (867,937) | ¥ (280,877) | ¥ 26,473 | |
Other countries | (58,014) | (175,633) | (110,726) | |
Total current income tax expenses | (925,951) | (456,510) | (84,253) | |
PRC | 457,266 | 77,741 | (7,436) | |
Other countries | (136,593) | 184,629 | (86,722) | |
Total deferred tax (expenses)/benefits | 320,673 | 262,370 | (94,158) | |
Income tax expenses, net | ¥ (605,278) | $ (87,757) | ¥ (194,140) | ¥ (178,411) |
TAXATION - Income Tax Rate Reco
TAXATION - Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
TAXATION | |||
Statutory CIT rate | 25% | 25% | 25% |
-Share-based compensation expenses | 3.20% | 0.10% | 0.10% |
-Change in fair value of convertible senior notes and call options | 0.20% | (4.40%) | 32% |
-Accrued payroll and welfare expenses | 0.10% | 0.10% | 0.40% |
-Change of enacted tax rate | 1.60% | 2.10% | (7.20%) |
-Other non-deductible expenses including tax preferences | 3.40% | (1.80%) | (6.60%) |
Difference in tax rate of subsidiaries outside the PRC | 3.90% | 2.20% | (3.10%) |
Effect of tax holiday for subsidiaries | (12.10%) | (12.90%) | (7.80%) |
Change in valuation allowance | 5.30% | 7.40% | (1.30%) |
Effective tax rate | 30.60% | 17.80% | 31.50% |
TAXATION - Aggregate Amount and
TAXATION - Aggregate Amount and Per Share Effect of Reduction of CIT (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
TAXATION | |||
The aggregate amount of effect | ¥ 239,268 | ¥ 140,235 | ¥ 44,191 |
Per share effect - basic | ¥ 1.21 | ¥ 0.74 | ¥ 0.25 |
Per share effect - diluted | ¥ 1.19 | ¥ 0.68 | ¥ 0.25 |
TAXATION - Deferred Tax Assets
TAXATION - Deferred Tax Assets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) |
TAXATION | |||||
Net operating losses | ¥ 529,522 | ¥ 473,367 | |||
Accrued warranty costs | 373,064 | 216,938 | |||
Provision for inventories, accounts receivable, other receivable | 230,019 | 101,595 | |||
Timing difference for subsidiary income | 166,857 | 15,235 | |||
Other temporary differences | 69,183 | 24,953 | |||
Impairment for property, plant and equipment and project assets | 35,491 | 100,860 | |||
Total deferred tax assets | 1,404,136 | 932,948 | |||
Less: Valuation allowance | (243,141) | (217,124) | ¥ (136,847) | ¥ (144,317) | |
Less: Deferred tax liabilities in the same tax jurisdiction | (456,751) | (344,057) | |||
Deferred tax assets | 704,244 | $ 102,106 | 371,767 | ||
Timing difference for project assets, property, plant and equipment | (478,515) | (375,499) | |||
Timing difference for refund of countervailing duties | (90,864) | (144,923) | |||
Deferred tax liabilities related to cumulative distributable earnings in Jiangxi Jinko | (52,173) | ||||
Other temporary differences | (30,007) | (6,638) | |||
Total deferred tax liabilities | (651,559) | (527,060) | |||
Less: Deferred tax assets in the same tax jurisdiction | 456,751 | 344,057 | |||
Deferred tax liabilities | ¥ (194,808) | $ (28,245) | ¥ (183,003) |
TAXATION - Movement of Valuatio
TAXATION - Movement of Valuation Allowances (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
TAXATION | |||
At beginning of year | ¥ (217,124) | ¥ (136,847) | ¥ (144,317) |
Current year additions | (216,260) | (88,667) | (37,426) |
Utilization and reversal of valuation allowances | 111,296 | 8,390 | 44,896 |
Decrease of valuation allowances related to the disposal of a subsidiary | 78,947 | ||
At end of year | ¥ (243,141) | ¥ (217,124) | ¥ (136,847) |
ACCOUNTS RECEIVABLE, NET-THIR_3
ACCOUNTS RECEIVABLE, NET-THIRD PARTIES - Schedule of accounts receivable (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
ACCOUNTS RECEIVABLE, NET-THIRD PARTIES | |||
Accounts receivables - current | ¥ 17,259,003 | ¥ 7,794,174 | |
Allowance for credit losses - current | (584,127) | (323,071) | |
Accounts receivable, net - current | 16,674,876 | $ 2,417,630 | 7,471,103 |
Accounts receivables - non-current | 28,186 | ||
Allowance for credit losses - non-current | (562) | ||
Accounts receivable, net - non-current | 0 | $ 0 | 27,624 |
Amount of accounts receivable pledged as collateral for borrowings | ¥ 1,006,000 | ¥ 726,000 |
ACCOUNTS RECEIVABLE, NET-THIR_4
ACCOUNTS RECEIVABLE, NET-THIRD PARTIES - Movement of Allowance for Doubtful Accounts (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
ACCOUNTS RECEIVABLE, NET-THIRD PARTIES | |||
Write off | ¥ (18,459) | ¥ (38,024) | ¥ 0 |
Accounts receivables, current | |||
ACCOUNTS RECEIVABLE, NET-THIRD PARTIES | |||
At beginning of year | 323,071 | 293,360 | 318,198 |
Addition | 394,285 | 91,948 | 26,581 |
Reversal | (114,770) | (24,213) | (20,503) |
At end of year | 584,127 | 323,071 | 293,360 |
Accounts receivables, non current | |||
ACCOUNTS RECEIVABLE, NET-THIRD PARTIES | |||
At beginning of year | 562 | 1,139 | 0 |
Addition | 0 | 1,139 | |
Reversal | (562) | (577) | 0 |
At end of year | 562 | 1,139 | |
ASU No. 2016-13 | Accounts receivables, current | |||
ACCOUNTS RECEIVABLE, NET-THIRD PARTIES | |||
At beginning of year | (30,916) | ||
At end of year | (30,916) | ||
ASU No. 2016-13 | Accounts receivables, non current | |||
ACCOUNTS RECEIVABLE, NET-THIRD PARTIES | |||
At beginning of year | 0 | 0 | |
At end of year | ¥ 0 | ¥ 0 | ¥ 0 |
NOTES RECEIVABLE, NET - THIRD P
NOTES RECEIVABLE, NET - THIRD PARTIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) |
NOTES RECEIVABLE, NET-THIRD PARTIES | |||||
Notes receivable | ¥ 6,697,096 | ¥ 1,690,142 | |||
Provision for notes receivable | 0 | (1,040) | ¥ (182) | ¥ 0 | |
Notes receivable, net | 6,697,096 | $ 970,988 | 1,689,102 | ||
Notes receivable pledged as collateral | ¥ 1,481,000 | ¥ 885,000 |
NOTES RECEIVABLE, NET - THIRD_2
NOTES RECEIVABLE, NET - THIRD PARTIES - (Schedule of Movement of Allowance for notes receivable) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
NOTES RECEIVABLE, NET-THIRD PARTIES | |||
At beginning of year | ¥ 1,040 | ¥ 182 | ¥ 0 |
Addition | 0 | 858 | 0 |
Reversal | (1,040) | 0 | (41) |
At end of year | 0 | 1,040 | 182 |
Impact of adopting ASC Topic 326 | |||
NOTES RECEIVABLE, NET-THIRD PARTIES | |||
At beginning of year | 0 | 223 | |
At end of year | ¥ 0 | ¥ 0 | ¥ 223 |
ADVANCES TO SUPPLIERS, NET - _3
ADVANCES TO SUPPLIERS, NET - THIRD PARTIES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
ADVANCES TO SUPPLIERS, NET - THIRD PARTIES | ||||
Advances to suppliers - current | ¥ 3,271,284 | ¥ 1,536,155 | $ 474,292 | |
Advances to suppliers - non-current | 310,375 | 296,709 | $ 45,000 | |
Advances to suppliers, net | 3,581,659 | 1,832,864 | ||
Provision for advance to suppliers | 0 | 0 | ¥ 0 | |
Wrote off balances of advances to suppliers | ¥ 0 | ¥ 6,000 | ¥ 2,000 |
INVENTORIES (Details)
INVENTORIES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
INVENTORIES. | |||||
Raw materials | ¥ 5,499,573 | ¥ 3,761,045 | |||
Work-in-progress | 3,237,480 | 2,623,044 | |||
Finished goods | 8,713,231 | 6,868,263 | |||
Total | 17,450,284 | 13,252,352 | $ 2,530,053 | ||
Inventory provision | 1,819,000 | $ 263,754 | 823,273 | ¥ 270,893 | |
Inventories with net book value | ¥ 2,809,000 | ¥ 1,749,000 |
PREPAYMENTS AND OTHER CURRENT_3
PREPAYMENTS AND OTHER CURRENT ASSETS (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Oct. 31, 2021 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2022 USD ($) | |
PREPAYMENTS AND OTHER CURRENT ASSETS | ||||||
Prepaid insurance premium | ¥ 111,537 | ¥ 114,088 | ¥ 111,537 | |||
Loan receivable | 1,689,102 | 6,697,096 | 1,689,102 | $ 970,988 | ||
Less: Allowance for credit losses | (5,521) | (8,118) | (5,521) | |||
Total | ¥ 2,435,057 | ¥ 3,290,903 | ¥ 2,435,057 | $ 477,136 | ||
Term of loan agreement | 1 year | 1 year | ||||
Loan One | ||||||
PREPAYMENTS AND OTHER CURRENT ASSETS | ||||||
Interest-free half-year loan | ¥ 23,000 | |||||
Loan Agreement With Yushan Jinko [Member] | ||||||
PREPAYMENTS AND OTHER CURRENT ASSETS | ||||||
Term of loan agreement | 6 years | 6 years | 6 years | |||
Interest-free half-year loan | ¥ 100,000 | ¥ 100,000 | ¥ 200,000 | ¥ 100,000 | ||
Foreign exchange option | ||||||
PREPAYMENTS AND OTHER CURRENT ASSETS | ||||||
Value-added tax deductible | 1,705,159 | 1,374,909 | 1,705,159 | |||
Deposit for customer duty, bidding and others | 142,442 | 181,371 | 142,442 | |||
Prepayment for income tax and deferred charges | 129,931 | 233,744 | 129,931 | |||
Receivables related to disposal of land use rights and property, plant and equipment | 111,804 | 378,900 | 111,804 | |||
Receivables related to discount from a supplier | 110,050 | 324,002 | 110,050 | |||
Prepayment of electricity and others | 91,334 | 153,021 | 91,334 | |||
Prepaid insurance premium | 6,675 | 7,281 | 6,675 | |||
Employee advances | 6,274 | 3,944 | 6,274 | |||
Refund receivable of U.S. countervailing duties and anti-dumping duties | 480,535 | |||||
Rental deposit and prepayment | 3,606 | 1,643 | 3,606 | |||
Receivable of option exercised | 1,169 | 1,169 | ||||
Prepaid professional service fee | 307 | 307 | ||||
Loan receivable | 23,459 | |||||
Others | 131,827 | 136,212 | 131,827 | |||
Less: Allowance for credit losses | (5,521) | (8,118) | (5,521) | |||
Total | ¥ 2,435,057 | ¥ 3,290,903 | ¥ 2,435,057 | |||
Maturity period of derivative | 12 months |
PREPAYMENTS AND OTHER CURRENT_4
PREPAYMENTS AND OTHER CURRENT ASSETS - Activity in the allowance for credit losses (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2022 CNY (¥) | |
Activity in the allowance for credit losses | |
At beginning of year | ¥ 5,521 |
Addition | 2,597 |
At end of year | 8,118 |
Impact of adopting ASC Topic 326 | |
Activity in the allowance for credit losses | |
At end of year | ¥ 0 |
INVESTMENTS AND AVAILABLE-FOR_3
INVESTMENTS AND AVAILABLE-FOR-SALE SECURITIES - Schedule of Long-term Investments (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
-Debt investment | |||
Available-for-sale securities | ¥ 104,499 | $ 15,151 | |
-Equity investment | |||
Investments accounted for under the equity method. | 1,287,201 | ¥ 538,866 | |
Equity securities without readily determinable fair values | 245,000 | 95,000 | |
Equity securities applying fair value option | 178,871 | ||
Subtotal | 1,711,072 | $ 248,083 | 633,866 |
Total | ¥ 1,815,571 | ¥ 633,866 |
INVESTMENTS AND AVAILABLE-FOR_4
INVESTMENTS AND AVAILABLE-FOR-SALE SECURITIES (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||||||||
Jun. 09, 2022 CNY (¥) | Dec. 31, 2022 CNY (¥) | Nov. 30, 2022 CNY (¥) item | Jul. 31, 2022 CNY (¥) | May 31, 2022 CNY (¥) | Jan. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Oct. 31, 2021 CNY (¥) | Apr. 30, 2019 CNY (¥) | Dec. 31, 2022 CNY (¥) MWh | Dec. 31, 2022 USD ($) MWh | Dec. 31, 2021 CNY (¥) MWh | Dec. 31, 2020 CNY (¥) MWh | Jun. 18, 2021 | Mar. 30, 2017 | Mar. 03, 2017 | Feb. 26, 2017 | |
LONG-TERM INVESTMENTS | |||||||||||||||||
Acquisitions of businesses and investments, net of cash acquired | ¥ 91,334 | $ 13,242 | ¥ (48,078) | ||||||||||||||
Equity method investment, unrealized intercompany profit (loss) eliminated, amount | (1,000) | ¥ (1,000) | 200 | ||||||||||||||
Payments for other fees | 5,310 | 27,485 | |||||||||||||||
Cash dividend | 0 | ||||||||||||||||
Equity method investments | ¥ 1,287,201 | ¥ 538,866 | 1,287,201 | 538,866 | |||||||||||||
Equity securities without readily determinable fair values | 245,000 | 95,000 | 245,000 | 95,000 | |||||||||||||
Capital injection in cash | 315,000 | ||||||||||||||||
Revenues | ¥ 31,000 | 83,127,296 | 12,052,325 | 40,826,521 | 35,129,459 | ||||||||||||
Equity in (loss)/income of affiliated companies | 193,708 | 28,085 | 59,809 | (52,706) | |||||||||||||
Gain on disposal of subsidiaries | ¥ 14,232 | $ 2,063 | 0 | 0 | |||||||||||||
Term of puttable bond | 2 years | 2 years | 2 years | ||||||||||||||
Aggregated principal | ¥ 100,000 | ||||||||||||||||
Annual interest | 5.50% | ||||||||||||||||
Unrealized gain | ¥ 1,000 | ||||||||||||||||
Xinte Silicon | |||||||||||||||||
LONG-TERM INVESTMENTS | |||||||||||||||||
Ownership percentage | 9% | ||||||||||||||||
Investments in subsidiaries | ¥ 534,000 | 534,000 | |||||||||||||||
Equity in (loss)/income of affiliated companies | 219,000 | (3) | |||||||||||||||
Shenzhen Laplace Energy Technology Co., Ltd | |||||||||||||||||
LONG-TERM INVESTMENTS | |||||||||||||||||
Capital injection in cash | ¥ 65,000 | ||||||||||||||||
Ownership percentage | 2.88% | ||||||||||||||||
Ningxia Xiaoniu Automation Equipment Co., Ltd | |||||||||||||||||
LONG-TERM INVESTMENTS | |||||||||||||||||
Capital injection in cash | ¥ 30,000 | ||||||||||||||||
SweihanSolar Holding Company Limited | |||||||||||||||||
LONG-TERM INVESTMENTS | |||||||||||||||||
Equity interests owned | 50% | 40% | |||||||||||||||
Cash dividend | ¥ 23,000 | ¥ 16,000 | |||||||||||||||
Jiangsu JinkoTiansheng Co Ltd | |||||||||||||||||
LONG-TERM INVESTMENTS | |||||||||||||||||
Equity interests owned | 30% | ||||||||||||||||
Gain from disposal of the equity interest | ¥ 13,000 | ||||||||||||||||
Ningxia Xiaoniu Automation Equipment Co., Ltd | |||||||||||||||||
LONG-TERM INVESTMENTS | |||||||||||||||||
Equity interests owned | 0.9375% | 0.9375% | |||||||||||||||
SSHC | |||||||||||||||||
LONG-TERM INVESTMENTS | |||||||||||||||||
Equity method investments | ¥ 144,000 | ¥ 224,000 | 144,000 | ¥ 224,000 | |||||||||||||
Decrease in investment | ¥ 94,000 | ||||||||||||||||
Xinte Silicon | |||||||||||||||||
LONG-TERM INVESTMENTS | |||||||||||||||||
Purchases from related party | 825,000 | 0 | |||||||||||||||
Profit due to elimination of transactions | ¥ 37,000 | 0 | |||||||||||||||
Xinte Silicon | Xinte Silicon | |||||||||||||||||
LONG-TERM INVESTMENTS | |||||||||||||||||
Investments in subsidiaries | 315,000 | ¥ 315,000 | |||||||||||||||
Sichuan Yongxiang Technology Co., Ltd. | |||||||||||||||||
LONG-TERM INVESTMENTS | |||||||||||||||||
Equity interests owned | 15% | 15% | |||||||||||||||
Equity method investments | ¥ 449,000 | ¥ 449,000 | |||||||||||||||
Capital injection in cash | 450,000 | ||||||||||||||||
Equity in (loss)/income of affiliated companies | 1,000 | ||||||||||||||||
Shangrao Jinko Green Energy Technology Development Co., Ltd | |||||||||||||||||
LONG-TERM INVESTMENTS | |||||||||||||||||
Equity interests owned | 33.33% | ||||||||||||||||
Equity method investments | ¥ 160,000 | 160,000 | |||||||||||||||
Capital injection in cash | ¥ 50,000 | ||||||||||||||||
Additional capital injections in cash | ¥ 115,000 | ||||||||||||||||
Equity in (loss)/income of affiliated companies | ¥ 4,000 | ||||||||||||||||
Number of third-party investors made capital injections | item | 2 | ||||||||||||||||
Gain on disposal of subsidiaries | ¥ 2,000 | ||||||||||||||||
Shangrao Jinko Green Energy Technology Development Co., Ltd | Third party investors | |||||||||||||||||
LONG-TERM INVESTMENTS | |||||||||||||||||
Capital injection in cash | ¥ 330,000 | ||||||||||||||||
Shangrao Jinko Green Energy Technology Development Co., Ltd | Third party investor, one | |||||||||||||||||
LONG-TERM INVESTMENTS | |||||||||||||||||
Capital injection in cash | ¥ 165,000 | ||||||||||||||||
Aiswei Technology Co., Ltd | |||||||||||||||||
LONG-TERM INVESTMENTS | |||||||||||||||||
Equity interests owned | 2.9126% | ||||||||||||||||
Capital injection in cash | ¥ 150,000 | ||||||||||||||||
Zhejiang Xiangbang Technology Co., Ltd . | |||||||||||||||||
LONG-TERM INVESTMENTS | |||||||||||||||||
Equity interests owned | 2.98% | ||||||||||||||||
Capital injection in cash | ¥ 77,000 | ||||||||||||||||
Unrealized gain on equity securities | ¥ 102,000 | ||||||||||||||||
Jinko Power Co Ltd | |||||||||||||||||
LONG-TERM INVESTMENTS | |||||||||||||||||
Capital injection to SSHC | ¥ 295,000 | ||||||||||||||||
Quantity of solar modules sold | MWh | 0 | 0 | 0 | 32.2 | |||||||||||||
Revenues | ¥ 0 | ¥ 0 | ¥ 51,000 | ||||||||||||||
Equity in (loss)/income of affiliated companies | 14,000 | (62,000) | (10,000) | ||||||||||||||
Jinko-Tiansheng | |||||||||||||||||
LONG-TERM INVESTMENTS | |||||||||||||||||
Equity method investment, unrealized intercompany profit (loss) eliminated, amount | 0 | (4,000) | 3,000 | ||||||||||||||
Payments for other fees | 0 | 5,000 | 27,000 | ||||||||||||||
Equity method investments | ¥ 3,000 | 3,000 | 9,000 | ||||||||||||||
Equity in (loss)/income of affiliated companies | ¥ 0 | ¥ 7,000 | ¥ 2,000 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
PROPERTY, PLANT AND EQUIPMENT, NET | |||||
Property and equipment | ¥ 37,201,495 | ¥ 22,555,166 | |||
Less: Accumulated depreciation | (6,462,379) | (5,232,342) | |||
Subtotal | 30,739,116 | 17,322,824 | |||
Construction in progress | 1,550,972 | 2,647,070 | |||
Property, plant and equipment, net | 32,290,088 | 19,969,894 | $ 4,681,623 | ||
Depreciation of property, plant and equipment | 2,585,000 | $ 374,792 | 1,603,786 | ¥ 1,160,851 | |
Receivables related to disposal of certain equipment | 1,118,000 | 390,000 | 610,000 | ||
Gain (loss) on disposition of property plant equipment | (248,500) | $ (36,029) | (350,336) | (428,115) | |
Property, plant and equipment impairment | 374,000 | 150,000 | ¥ 20,000 | ||
Property, plant and equipment pledged as collateral for borrowings | 5,210,000 | 4,115,000 | |||
Bank acceptance notes | |||||
PROPERTY, PLANT AND EQUIPMENT, NET | |||||
Property, plant and equipment pledged as collateral for issuance of bank acceptance notes | 0 | 105,000 | |||
Buildings | |||||
PROPERTY, PLANT AND EQUIPMENT, NET | |||||
Property and equipment | 12,655,905 | 6,875,072 | |||
Machinery and equipment | |||||
PROPERTY, PLANT AND EQUIPMENT, NET | |||||
Property and equipment | 22,435,247 | 14,199,961 | |||
Motor vehicles | |||||
PROPERTY, PLANT AND EQUIPMENT, NET | |||||
Property and equipment | 114,936 | 71,837 | |||
Furniture, fixture and office equipment | |||||
PROPERTY, PLANT AND EQUIPMENT, NET | |||||
Property and equipment | ¥ 1,995,407 | ¥ 1,408,296 |
LAND USE RIGHTS, NET (Details)
LAND USE RIGHTS, NET (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
LAND USE RIGHTS, NET | |||||
Land use rights | ¥ 1,535,556 | ¥ 1,196,668 | |||
Less: accumulated amortization | (104,132) | (106,611) | |||
Land use rights, net | 1,431,424 | 1,090,057 | $ 207,537 | ||
Amortization of land use rights | 27,353 | $ 3,966 | 18,031 | ¥ 12,379 | |
Estimated future amortization expense | 30,000 | ||||
Land use rights pledged | ¥ 169,000 | 110,000 | |||
Minimum [Member] | |||||
LAND USE RIGHTS, NET | |||||
Period of land use rights | 50 years | 50 years | |||
Maximum [Member] | |||||
LAND USE RIGHTS, NET | |||||
Period of land use rights | 70 years | 70 years | |||
Bank acceptance notes | |||||
LAND USE RIGHTS, NET | |||||
Land use rights pledged | ¥ 0 | ¥ 15,000 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) | |
INTANGIBLE ASSETS, NET | |||||
Less: accumulated amortization | ¥ (56,848) | ¥ (40,809) | |||
Intangible assets, net | 79,600 | 55,484 | $ 11,541 | ||
Amortization of intangible assets | 17,324 | $ 2,512 | 11,904 | ¥ 10,177 | |
Trademark | |||||
INTANGIBLE ASSETS, NET | |||||
Intangible assets, gross | 1,230 | 1,581 | |||
Computer software | |||||
INTANGIBLE ASSETS, NET | |||||
Intangible assets, gross | ¥ 135,218 | ¥ 94,712 |
OTHER ASSETS - THIRD PARTIES (D
OTHER ASSETS - THIRD PARTIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
OTHER ASSETS - THIRD PARTIES | |||
Prepayments for purchase of property, plant and equipment | ¥ 1,162,351 | ¥ 1,859,173 | |
Refund receivable of U.S. countervailing duties and anti-dumping duties | 580,058 | ||
Deposit for rent and others | 131,611 | 175,297 | |
Prepayment for warranty insurance premium | 114,088 | 111,537 | |
Prepayment of income tax attributable to intercompany transactions | 15,474 | 16,159 | |
Less: Allowance for credit losses | (1,855) | (3,064) | |
Total | ¥ 1,421,669 | $ 206,123 | ¥ 2,739,160 |
OTHER ASSETS - THIRD PARTIES -
OTHER ASSETS - THIRD PARTIES - Additional (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | ||||||||||||||||||
Jan. 31, 2023 USD ($) | Jan. 31, 2023 CNY (¥) | Nov. 30, 2022 USD ($) | Nov. 30, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CNY (¥) | May 31, 2022 USD ($) | May 31, 2022 CNY (¥) | Dec. 31, 2020 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 USD ($) | Dec. 31, 2019 CNY (¥) | Dec. 31, 2017 CNY (¥) | Jan. 01, 2017 USD ($) | Dec. 31, 2016 | Jan. 01, 2016 | Dec. 31, 2015 USD ($) | Dec. 31, 2015 CNY (¥) | Jan. 01, 2015 | |
OTHER ASSETS - THIRD PARTIES | |||||||||||||||||||
Counter veiling duty percentage | 11.97% | 11.97% | 5.86% | 5.86% | 4.22% | 4.22% | 20.94% | 12.67% | 20.94% | 12.70% | 20.94% | 20.94% | 10.64% | ||||||
Reversal of refundable deposits | $ 40 | ¥ 230 | $ 33,000 | ¥ 226,000 | $ 25,000 | ¥ 164,000 | $ 37,000 | ¥ 260,000 | ¥ 3,000 | $ 400 | $ 31,000 | ¥ 210,000 | |||||||
Refunds received from the U.S. customs | $ 69,000 | ¥ 499,000 | |||||||||||||||||
Refund received, principal amount | 56,000 | 400,000 | |||||||||||||||||
Refund received, interest amount | $ 14,000 | ¥ 100,000 | |||||||||||||||||
Subsequent Event | |||||||||||||||||||
OTHER ASSETS - THIRD PARTIES | |||||||||||||||||||
Refunds received from the U.S. customs | $ 87,000 | ¥ 593,000 | |||||||||||||||||
Refund received, principal amount | 70,000 | 477,000 | |||||||||||||||||
Refund received, interest amount | $ 17,000 | ¥ 116,000 |
OTHER ASSETS - THIRD PARTIES _2
OTHER ASSETS - THIRD PARTIES - Summary of activity in allowance for credit losses related to deposits (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2022 CNY (¥) | |
OTHER ASSETS - THIRD PARTIES | |
At beginning of year | ¥ 3,064 |
Reversal | (1,209) |
At end of year | ¥ 1,855 |
OTHER PAYABLES AND ACCRUALS (De
OTHER PAYABLES AND ACCRUALS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
OTHER PAYABLES AND ACCRUALS | |||
Payables for purchase of property, plant and equipment | ¥ 6,412,134 | ¥ 3,073,625 | |
Freight payables | 1,359,813 | 858,027 | |
Accrued utilities, rentals and interest | 629,977 | 424,436 | |
Customs duties | 147,759 | 157,655 | |
Accrued warranty cost | 221,699 | 149,164 | |
Value-added tax and other tax payables | 329,078 | 74,784 | |
Commission payables | 13,587 | 24,861 | |
Contracted labor fees | 20,015 | 24,392 | |
Accrued professional service fees | 34,110 | 19,739 | |
Insurance premium payables | 1,853 | 6,839 | |
Others | 44,359 | 30,562 | |
Total | ¥ 9,214,384 | $ 1,335,961 | ¥ 4,844,084 |
BORROWINGS - Short-term borrowi
BORROWINGS - Short-term borrowings (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
BORROWINGS | |||
Short-term borrowings | ¥ 10,316,714 | ¥ 11,967,827 | |
Long-term borrowings-current portion | 2,102,456 | 1,371,540 | |
Total short-term borrowings | ¥ 12,419,170 | [1] | ¥ 13,339,367 |
[1] RMB 120 million collateralized on the account receivables and inventories of the Group, RMB 528 million collateralized on the Group’s certain building and equipment, including RMB 329 million which were also collateralized on the Group’s certain land use rights, RMB 95 million were also collateralized on the Group’s certain land use rights and inventories. |
BORROWINGS - Type of short-term
BORROWINGS - Type of short-term (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | ||
BORROWINGS | ||||
Short-term borrowings | ¥ 12,419,170 | [1] | ¥ 13,339,367 | |
Credit Loans | ||||
BORROWINGS | ||||
Short-term borrowings | [2] | 4,055,137 | ||
Letter of Credit | ||||
BORROWINGS | ||||
Short-term borrowings | [2] | 2,792,460 | ||
Guaranteed by JinkoSolar Holding | ||||
BORROWINGS | ||||
Short-term borrowings | [3] | 256,313 | ||
Guaranteed by Jinkosolar Holding and Shareholders of the Group | ||||
BORROWINGS | ||||
Short-term borrowings | [4] | 167,000 | ||
Guaranteed by Jiangxi Jinko and certain shareholders of the Group | ||||
BORROWINGS | ||||
Short-term borrowings | [3] | 50,000 | ||
Guaranteed by Jiangxi Jinko | ||||
BORROWINGS | ||||
Short-term borrowings | 1,942,835 | |||
Guaranteed by Zhejiang Jinko | ||||
BORROWINGS | ||||
Short-term borrowings | 1,329,716 | |||
Guaranteed by Agricultural Bank of China Shangrao Guangxin Branch | ||||
BORROWINGS | ||||
Short-term borrowings | [3] | 20,197 | ||
Guaranteed by China Export & Credit Insurance Corporation | ||||
BORROWINGS | ||||
Short-term borrowings | 25,312 | |||
Financings associated with failed sale lease back transactions | ||||
BORROWINGS | ||||
Short-term borrowings | [5] | 1,132,645 | ||
Guaranteed and collateralized on buildings, equipment and other assets of the Group and shareholders of the Group | ||||
BORROWINGS | ||||
Short-term borrowings | ¥ 647,555 | |||
[1] RMB 120 million collateralized on the account receivables and inventories of the Group, RMB 528 million collateralized on the Group’s certain building and equipment, including RMB 329 million which were also collateralized on the Group’s certain land use rights, RMB 95 million were also collateralized on the Group’s certain land use rights and inventories. As of December 31, 2022, the Group had short-term bank borrowings of RMB 4,055 million credit loans, and RMB 2,792 million letter of credit loans. The remaining short-term bank borrowings of RMB 4,439 million were either guaranteed by other parties and/or collateralized on the Group’s assets, detailed as following: Borrowings of RMB 256 million guaranteed by JinkoSolar Holding, RMB 167 million guaranteed by JinkoSolar Holding and certain shareholders of the Group, RMB 50 million Borrowings of RMB 256 million guaranteed by JinkoSolar Holding, RMB 167 million guaranteed by JinkoSolar Holding and certain shareholders of the Group, RMB 50 million guaranteed by Jiangxi Jinko and certain shareholders of the Group, RMB 1,943 million guaranteed by Jiangxi Jinko, RMB 1,330 million guaranteed by Zhejiang Jinko, RMB 20 million guranteed by Agricultural Bank of China Shangrao Guangxin Branch, and RMB 25 million guranteed by China Export & Credit Insurance Corporation, respectively. As of December 31, 2022, the Group recorded financings associated with failed sale-lease back transactions with the amount of RMB 1,463 million under long-term borrowings, and RMB 1,133 million as current portion (Note 18). |
BORROWINGS - Short-term narrati
BORROWINGS - Short-term narrative (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | ||
BORROWINGS | ||||
Short-term loans interest rate | 3.10% | 3.28% | ||
Short-term borrowings | ¥ 12,419,170 | [1] | ¥ 13,339,367 | |
Amount of short-term bank borrowings guaranteed or collateralized | 4,439,000 | |||
Long-term borrowings-current portion | 2,102,456 | 1,371,540 | ||
Trade Accounts Receivable | ||||
BORROWINGS | ||||
Pledged assets separately reported, other assets pledged as collateral, at fair value | 1,006,000 | |||
Guaranteed by Agricultural Bank of China Shangrao Guangxin Branch | ||||
BORROWINGS | ||||
Short-term borrowings | [2] | 20,197 | ||
Guaranteed by China Export & Credit Insurance Corporation | ||||
BORROWINGS | ||||
Short-term borrowings | 25,312 | |||
Financings associated with failed sale lease back transactions | ||||
BORROWINGS | ||||
Long-term borrowings-current portion | 1,463,000 | |||
Current portion of debt | 1,132,645 | ¥ 1,272,284 | ||
Loans denominated and repayable in EURO | ||||
BORROWINGS | ||||
Short-term borrowings | 2,186,000 | |||
Loans denominated and repayable in USD | ||||
BORROWINGS | ||||
Short-term borrowings | 1,002,000 | |||
Loans denominated and repayable in JPY | ||||
BORROWINGS | ||||
Short-term borrowings | 120,000 | |||
Land Use Rights | ||||
BORROWINGS | ||||
Pledged assets separately reported, other assets pledged as collateral, at fair value | 169,000 | |||
Land Use Rights | Loan Six | Guaranteed by affiliate | ||||
BORROWINGS | ||||
Short-term borrowings | 95,000 | |||
Buildings | ||||
BORROWINGS | ||||
Pledged assets separately reported, other assets pledged as collateral, at fair value | 1,102,000 | |||
Equipment | ||||
BORROWINGS | ||||
Pledged assets separately reported, other assets pledged as collateral, at fair value | 4,108,000 | |||
Inventories | ||||
BORROWINGS | ||||
Pledged assets separately reported, other assets pledged as collateral, at fair value | 2,809,000 | |||
Inventories | Loan Three | Collateral Pledged. | ||||
BORROWINGS | ||||
Short-term borrowings | 120,000 | |||
Inventories | Loan Four | Guaranteed by affiliate | Trade Accounts Receivable | ||||
BORROWINGS | ||||
Short-term borrowings | 528,000 | |||
Building and Equipment | Loan Five | Guaranteed by affiliate | ||||
BORROWINGS | ||||
Short-term borrowings | 329,000 | |||
JinkoSolar Holding | Guaranteed by affiliate | ||||
BORROWINGS | ||||
Short-term borrowings | 256,000 | |||
JinkoSolar Holding | Loan Seven | Guaranteed by affiliate | ||||
BORROWINGS | ||||
Short-term borrowings | 120,000 | |||
Jinkosolar Holding and Shareholders | Guaranteed by affiliate | ||||
BORROWINGS | ||||
Short-term borrowings | 167,000 | |||
Jiangxi Jinko | Guaranteed by affiliate | ||||
BORROWINGS | ||||
Short-term borrowings | 50,000 | |||
Jiangxi Jinko | Loan Seven | Guaranteed by affiliate | ||||
BORROWINGS | ||||
Short-term borrowings | 288,000 | |||
Guaranteed by Jiangxi Jinko | Guaranteed by Agricultural Bank of China Shangrao Guangxin Branch | ||||
BORROWINGS | ||||
Short-term borrowings | 1,943,000 | |||
Zhejiang Jinko | Guaranteed by affiliate | ||||
BORROWINGS | ||||
Short-term borrowings | 1,330,000 | |||
JinkoSolar Holding and Zhejiang Jinko | Loan Seven | Guaranteed by affiliate | ||||
BORROWINGS | ||||
Short-term borrowings | 100,000 | |||
Credit Loans | ||||
BORROWINGS | ||||
Short-term borrowings | [3] | 4,055,137 | ||
Letter of Credit | ||||
BORROWINGS | ||||
Short-term borrowings | [3] | ¥ 2,792,460 | ||
[1] RMB 120 million collateralized on the account receivables and inventories of the Group, RMB 528 million collateralized on the Group’s certain building and equipment, including RMB 329 million which were also collateralized on the Group’s certain land use rights, RMB 95 million were also collateralized on the Group’s certain land use rights and inventories. Borrowings of RMB 256 million guaranteed by JinkoSolar Holding, RMB 167 million guaranteed by JinkoSolar Holding and certain shareholders of the Group, RMB 50 million As of December 31, 2022, the Group had short-term bank borrowings of RMB 4,055 million credit loans, and RMB 2,792 million letter of credit loans. The remaining short-term bank borrowings of RMB 4,439 million were either guaranteed by other parties and/or collateralized on the Group’s assets, detailed as following: |
BORROWINGS - Long-term (Details
BORROWINGS - Long-term (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
BORROWINGS | |||
Long-term bank borrowings | ¥ 3,329,075 | ¥ 590,013 | |
Long-term financings associated with failed sale-leaseback transactions | 15,125,251 | ||
Less: Current portion of long-term borrowings | (969,811) | (99,256) | |
Total long-term borrowings | 13,022,795 | $ 1,888,128 | 9,896,455 |
Financings associated with failed sale lease back transactions | |||
BORROWINGS | |||
Long-term financings associated with failed sale-leaseback transactions | 2,595,686 | 2,756,452 | |
Less: Current portion of financings associated with failed sale-leaseback transactions | (1,132,645) | (1,272,284) | |
Other Long Term Debt [Member] | |||
BORROWINGS | |||
Long-term financings associated with failed sale-leaseback transactions | ¥ 9,200,490 | ¥ 7,921,530 |
BORROWINGS - Long-term future p
BORROWINGS - Long-term future principal repayments (Details) ¥ in Thousands | Dec. 31, 2022 CNY (¥) |
BORROWINGS | |
2023 | ¥ 3,862,228 |
2024 | 2,875,790 |
2025 | 5,085,899 |
2026 | 2,110,558 |
2027 | 625,033 |
Thereafter | 565,743 |
Total | ¥ 15,125,251 |
BORROWINGS - Long-term narrativ
BORROWINGS - Long-term narrative (Details) ¥ in Thousands, € in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Aug. 31, 2022 CNY (¥) | Jan. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Oct. 31, 2021 CNY (¥) | Sep. 30, 2021 CNY (¥) | Jul. 31, 2021 CNY (¥) | Aug. 31, 2020 | Jul. 31, 2020 CNY (¥) | Apr. 30, 2020 CNY (¥) | Dec. 31, 2020 CNY (¥) | Sep. 30, 2020 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2023 CNY (¥) | Jun. 30, 2023 CNY (¥) | Dec. 31, 2022 EUR (€) | ||
BORROWINGS | |||||||||||||||||
Term of loan agreement | 1 year | 1 year | |||||||||||||||
Long-term financings associated with failed sale-leaseback transactions | ¥ 15,125,251 | ||||||||||||||||
Loans payable to bank | ¥ 590,013 | 3,329,075 | ¥ 590,013 | ||||||||||||||
Loans payable to bank, current | 99,256 | 969,811 | 99,256 | ||||||||||||||
Short-term borrowings | 13,339,367 | 12,419,170 | [1] | 13,339,367 | |||||||||||||
Government Background Companies | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Capital injections | ¥ 846,000 | ||||||||||||||||
Jinko Chuzhou | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Term of loan agreement | 5 years | 5 years | |||||||||||||||
Interest-free half-year loan | ¥ 100,000 | ¥ 150,000 | |||||||||||||||
Interest rate | 4.35% | 4.35% | |||||||||||||||
Long-term financings associated with failed sale-leaseback transactions | 1,633,000 | ||||||||||||||||
Net book value collateralized | 1,025,000 | 701,000 | 1,025,000 | ||||||||||||||
Ownership interest held | 45% | ||||||||||||||||
Fixed annual return (as a percent) | 4.35% | ||||||||||||||||
Equity interest that will be repurchased (as a percent) | 45% | ||||||||||||||||
Noncontrolling interest derecognized | ¥ 859,000 | ||||||||||||||||
New loan liabilities at fair value | 846,000 | ||||||||||||||||
Jinko Yiwu | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Long-term financings associated with failed sale-leaseback transactions | 757,000 | 754,000 | ¥ 757,000 | ||||||||||||||
Fixed annual return (as a percent) | 6% | ||||||||||||||||
Equity interest that will be repurchased (as a percent) | 45% | ||||||||||||||||
Noncontrolling interest derecognized | 779,000 | ||||||||||||||||
New loan liabilities at fair value | ¥ 818,000 | ||||||||||||||||
Jinko Yiwu | Government Background Companies | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Capital injections | ¥ 765,000 | ||||||||||||||||
Jinko ShangRao | Government Background Companies | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Term of loan agreement | 5 years | ||||||||||||||||
Interest-free half-year loan | 98,000 | ¥ 98,000 | |||||||||||||||
Interest rate | 10% | 10% | |||||||||||||||
Net book value collateralized | ¥ 2,017,000 | ¥ 2,059,000 | ¥ 2,017,000 | ||||||||||||||
Carrying value of the loan | 0 | ||||||||||||||||
Capital injections | ¥ 50,000 | ¥ 150,000 | ¥ 4,500,000 | ||||||||||||||
Fixed annual return (as a percent) | 4.90% | 5.18% | 5.18% | 5.18% | 4.90% | ||||||||||||
Long term Borrowings With Embedded Warrants | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Long-term financings associated with failed sale-leaseback transactions | 1,099,000 | ||||||||||||||||
Financings associated with failed sale lease back transactions | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Long-term financings associated with failed sale-leaseback transactions | ¥ 2,756,452 | 2,595,686 | ¥ 2,756,452 | ||||||||||||||
Current portion of debt | 1,272,284 | 1,132,645 | 1,272,284 | ||||||||||||||
Carrying amount of solar project sold | 2,630,000 | 1,761,000 | 2,630,000 | ||||||||||||||
Cash consideration received on sale of solar project | 1,768,000 | ¥ 3,334,000 | |||||||||||||||
Financings associated with failed sale lease back transactions | Minimum | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Lease term | 1 year | ||||||||||||||||
Financings associated with failed sale lease back transactions | Maximum | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Lease term | 6 years | ||||||||||||||||
Loan agreement with The Export-Import Bank of China [Member] | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Interest-free half-year loan | € | € 28 | ||||||||||||||||
Other long term borrowings | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Long-term financings associated with failed sale-leaseback transactions | 7,921,530 | 9,200,490 | ¥ 7,921,530 | ||||||||||||||
Rui Xu's Loan Agreement With Government Background Company | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Term of loan agreement | 5 years | 5 years | |||||||||||||||
Interest-free half-year loan | ¥ 20,000 | ¥ 20,000 | |||||||||||||||
Interest rate | 5.05% | 5.05% | |||||||||||||||
Net book value collateralized | 40,000 | ||||||||||||||||
Loan Agreement With Ping An International Financial Leasing Co., Ltd | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Term of loan agreement | 2 years | ||||||||||||||||
Interest-free half-year loan | ¥ 49,263,000 | ||||||||||||||||
Loan Agreement with Deutsche Bank Co.,LTD | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Term of loan agreement | 3 years | ||||||||||||||||
Loan Agreement With Haining Jinko | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Term of loan agreement | 5 years | 5 years | |||||||||||||||
Interest-free half-year loan | ¥ 1,000,000 | ¥ 690,000 | |||||||||||||||
Interest rate | 5.06% | 10% | |||||||||||||||
Net book value collateralized | 690,000 | ¥ 591,000 | ¥ 690,000 | ||||||||||||||
Loan Agreement With Anhui Jinko | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Term of loan agreement | 6 years | 6 years | |||||||||||||||
Interest-free half-year loan | ¥ 455,000 | ||||||||||||||||
Interest rate | 5.58% | ||||||||||||||||
Long-term financings associated with failed sale-leaseback transactions | ¥ 215,000 | ||||||||||||||||
Net book value collateralized | ¥ 434,000 | 465,000 | 434,000 | ||||||||||||||
Loan Agreement With Yushan Jinko | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Term of loan agreement | 6 years | 6 years | 6 years | ||||||||||||||
Interest-free half-year loan | ¥ 100,000 | ¥ 100,000 | ¥ 200,000 | ¥ 100,000 | |||||||||||||
Interest rate | 4.90% | 4.90% | 4.90% | 4.90% | |||||||||||||
Long-term financings associated with failed sale-leaseback transactions | 100,000 | ||||||||||||||||
Net book value collateralized | ¥ 287,000 | ¥ 278,000 | ¥ 287,000 | ||||||||||||||
5-year loan agreements with Industrial Bank Co.,LTD | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Term of loan agreement | 5 years | ||||||||||||||||
Interest-free half-year loan | ¥ 190,000 | ||||||||||||||||
Interest rate | 4.30% | 4.30% | |||||||||||||||
Long-term financings associated with failed sale-leaseback transactions | ¥ 138,000 | ||||||||||||||||
Balance due on first year | 5,000 | ¥ 26,000 | |||||||||||||||
Balance due on second year | 18,000 | ||||||||||||||||
5-year loan agreements with Industrial Bank Co.,LTD, one | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Term of loan agreement | 5 years | ||||||||||||||||
Interest-free half-year loan | ¥ 100,000 | ¥ 25,000 | ¥ 100,000 | ||||||||||||||
Interest rate | 5.30% | 4.80% | 5.30% | 4.80% | |||||||||||||
Long-term financings associated with failed sale-leaseback transactions | ¥ 119,000 | ¥ 81,000 | ¥ 119,000 | ||||||||||||||
5-year loan agreements with Industrial Bank Co.,LTD, two | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Term of loan agreement | 5 years | ||||||||||||||||
Interest-free half-year loan | ¥ 19,000 | ¥ 92,000 | ¥ 19,000 | ||||||||||||||
Interest rate | 5.30% | 4.60% | 5.30% | 4.60% | |||||||||||||
Long-term financings associated with failed sale-leaseback transactions | ¥ 190,000 | ||||||||||||||||
5-year loan agreements with Industrial Bank Co.,LTD, three | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Interest-free half-year loan | ¥ 21,000 | ||||||||||||||||
Interest rate | 4.60% | 4.60% | |||||||||||||||
3-year loan agreement with Industrial Bank Co. Ltd | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Term of loan agreement | 3 years | ||||||||||||||||
Interest rate | 4.10% | 4.10% | |||||||||||||||
Long-term financings associated with failed sale-leaseback transactions | ¥ 149,000 | ||||||||||||||||
Revolving loan facility | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Long-term financings associated with failed sale-leaseback transactions | 397,000 | ||||||||||||||||
Balance due on first year | 27,000 | ¥ 27,000 | |||||||||||||||
Maximum aggregate principal amount | 2,400,000 | ||||||||||||||||
Amount drew down | ¥ 397,000 | ||||||||||||||||
3-year loan agreement with Bank of Shanghai Co.,Ltd | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Term of loan agreement | 3 years | ||||||||||||||||
Interest-free half-year loan | ¥ 100,000 | ||||||||||||||||
Interest rate | 3.65% | 3.65% | |||||||||||||||
Long-term financings associated with failed sale-leaseback transactions | ¥ 100,000 | ||||||||||||||||
Net book value collateralized | ¥ 10,000 | ||||||||||||||||
3-year loan agreement with China Construction Bank | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Term of loan agreement | 3 years | ||||||||||||||||
Interest-free half-year loan | ¥ 80,000 | ||||||||||||||||
Interest rate | 4.10% | 4.10% | |||||||||||||||
3-year loan agreement with Industrial Bank Co.,LTD | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Term of loan agreement | 3 years | ||||||||||||||||
Interest-free half-year loan | ¥ 150,000 | ||||||||||||||||
Interest rate | 4.10% | 4.10% | |||||||||||||||
Long-term financings associated with failed sale-leaseback transactions | ¥ 400,000 | ||||||||||||||||
Balance due on first year | 60 | ||||||||||||||||
3-year loan agreement with Industrial Bank Co.,LTD | Land Use Rights | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Net book value collateralized | 38,000 | ||||||||||||||||
3-year loan agreement with Industrial Bank Co.,LTD | Buildings | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Net book value collateralized | 366,000 | ||||||||||||||||
3-year loan agreement with Industrial Bank Co.,LTD, one | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Interest-free half-year loan | 100,000 | ||||||||||||||||
3-year loan agreement with Industrial Bank Co.,LTD, two | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Interest-free half-year loan | 100,000 | ||||||||||||||||
3-year loan agreement with Industrial Bank Co.,LTD, three | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Interest-free half-year loan | ¥ 200,000 | ||||||||||||||||
3-year loan agreement with China Everbright Bank | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Term of loan agreement | 3 years | ||||||||||||||||
Interest-free half-year loan | ¥ 50,000 | ||||||||||||||||
Interest rate | 3.65% | 3.65% | |||||||||||||||
Long-term financings associated with failed sale-leaseback transactions | ¥ 50,000 | ||||||||||||||||
Balance due on first year | ¥ 500 | ||||||||||||||||
3-year loan agreement with Hua Xia Bank | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Term of loan agreement | 3 years | ||||||||||||||||
Interest-free half-year loan | ¥ 70,000 | ||||||||||||||||
Interest rate | 3.40% | 3.40% | |||||||||||||||
Long-term financings associated with failed sale-leaseback transactions | ¥ 70,000 | ||||||||||||||||
Balance due on first year | ¥ 10,000 | ||||||||||||||||
5-year loan agreement with Fudian Bank | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Term of loan agreement | 5 years | ||||||||||||||||
Interest-free half-year loan | ¥ 17,000 | ||||||||||||||||
Interest rate | 5.10% | 5.10% | |||||||||||||||
Long-term financings associated with failed sale-leaseback transactions | ¥ 16,000 | ||||||||||||||||
Balance due on first year | ¥ 3,000 | ||||||||||||||||
2-year loan agreement with China Everbright Bank | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Term of loan agreement | 2 years | ||||||||||||||||
Interest-free half-year loan | ¥ 50,000 | ||||||||||||||||
Interest rate | 3.50% | 3.50% | |||||||||||||||
4-year loan agreement with China CITIC Bank | |||||||||||||||||
BORROWINGS | |||||||||||||||||
Term of loan agreement | 4 years | ||||||||||||||||
Interest-free half-year loan | ¥ 164,000 | ||||||||||||||||
Interest rate | 3.65% | 3.65% | |||||||||||||||
Long-term financings associated with failed sale-leaseback transactions | ¥ 160,000 | ||||||||||||||||
Balance due on first year | ¥ 4,000 | ||||||||||||||||
[1] RMB 120 million collateralized on the account receivables and inventories of the Group, RMB 528 million collateralized on the Group’s certain building and equipment, including RMB 329 million which were also collateralized on the Group’s certain land use rights, RMB 95 million were also collateralized on the Group’s certain land use rights and inventories. |
BORROWINGS - Other long-term bo
BORROWINGS - Other long-term borrowings (Details) ¥ in Thousands, € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||
Aug. 31, 2022 CNY (¥) | Jul. 31, 2022 CNY (¥) | Jan. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Oct. 31, 2021 CNY (¥) | Sep. 30, 2021 CNY (¥) | Jul. 31, 2021 CNY (¥) | Oct. 31, 2020 CNY (¥) | Aug. 31, 2020 | Jul. 31, 2020 CNY (¥) | Apr. 30, 2020 CNY (¥) | Dec. 31, 2020 CNY (¥) | Sep. 30, 2018 CNY (¥) | Jun. 30, 2018 CNY (¥) | Sep. 30, 2020 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 USD ($) | |
BORROWINGS | ||||||||||||||||||||
Term of loan agreement | 1 year | 1 year | ||||||||||||||||||
Long-term Debt | ¥ 15,125,251 | |||||||||||||||||||
JinkoSolar (Sichuan) Co., Ltd. | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Fixed annual return (as a percent) | 6% | |||||||||||||||||||
Noncontrolling interest derecognized | ¥ 997,000 | |||||||||||||||||||
New loan liabilities at fair value | ¥ 1,114,000 | |||||||||||||||||||
Long-term Debt | ¥ 1,560,000 | ¥ 1,560,000 | ||||||||||||||||||
JinkoSolar Technology (Haining) Co., Ltd. ("Haining Jinko") | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Noncontrolling interest derecognized | 1,164,000 | |||||||||||||||||||
New loan liabilities at fair value | 1,193,000 | |||||||||||||||||||
Long-term Debt | 1,096,000 | 1,096,000 | ||||||||||||||||||
JinkoSolar Technology (Haining) Co., Ltd. ("Haining Jinko") | Minimum | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Fixed annual return (as a percent) | 4.75% | |||||||||||||||||||
JinkoSolar Technology (Haining) Co., Ltd. ("Haining Jinko") | Maximum | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Fixed annual return (as a percent) | 5.23% | |||||||||||||||||||
Jinko Yiwu | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Fixed annual return (as a percent) | 6% | |||||||||||||||||||
Equity interest that will be repurchased (as a percent) | 45% | |||||||||||||||||||
Noncontrolling interest derecognized | 779,000 | |||||||||||||||||||
New loan liabilities at fair value | 818,000 | |||||||||||||||||||
Long-term Debt | 757,000 | 754,000 | 757,000 | |||||||||||||||||
Jinko Chuzhou | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Fixed annual return (as a percent) | 4.35% | |||||||||||||||||||
Equity interest that will be repurchased (as a percent) | 45% | |||||||||||||||||||
Ownership interest held | 45% | |||||||||||||||||||
Noncontrolling interest derecognized | 859,000 | |||||||||||||||||||
New loan liabilities at fair value | ¥ 846,000 | |||||||||||||||||||
Term of loan agreement | 5 years | 5 years | ||||||||||||||||||
Interest-free half-year loan | ¥ 100,000 | ¥ 150,000 | ||||||||||||||||||
Interest rate | 4.35% | 4.35% | ||||||||||||||||||
Net book value collateralized | ¥ 1,025,000 | 701,000 | 1,025,000 | |||||||||||||||||
Long-term Debt | 1,633,000 | |||||||||||||||||||
Loan Agreement With Yushan Jinko | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Term of loan agreement | 6 years | 6 years | 6 years | |||||||||||||||||
Interest-free half-year loan | ¥ 100,000 | ¥ 100,000 | ¥ 200,000 | ¥ 100,000 | ||||||||||||||||
Interest rate | 4.90% | 4.90% | 4.90% | 4.90% | 4.90% | |||||||||||||||
Net book value collateralized | ¥ 287,000 | 278,000 | ¥ 287,000 | |||||||||||||||||
Long-term Debt | ¥ 100,000 | |||||||||||||||||||
Loan Agreement With Anhui Jinko | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Term of loan agreement | 6 years | 6 years | ||||||||||||||||||
Interest-free half-year loan | ¥ 455,000 | |||||||||||||||||||
Interest rate | 5.58% | |||||||||||||||||||
Net book value collateralized | 434,000 | ¥ 465,000 | 434,000 | |||||||||||||||||
Long-term Debt | 215,000 | |||||||||||||||||||
Loan Agreement With Haining Jinko | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Term of loan agreement | 5 years | 5 years | ||||||||||||||||||
Interest-free half-year loan | ¥ 1,000,000 | ¥ 690,000 | ||||||||||||||||||
Interest rate | 5.06% | 10% | ||||||||||||||||||
Net book value collateralized | 690,000 | 591,000 | 690,000 | |||||||||||||||||
Outstanding balance in next 12 months | 1,006,000 | |||||||||||||||||||
Loan Agreement With Ping An International Financial Leasing Co., Ltd | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Term of loan agreement | 2 years | |||||||||||||||||||
Interest-free half-year loan | ¥ 49,263,000 | |||||||||||||||||||
Rui Xu's Loan Agreement With Government Background Company | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Term of loan agreement | 5 years | 5 years | ||||||||||||||||||
Interest-free half-year loan | ¥ 20,000 | ¥ 20,000 | ||||||||||||||||||
Interest rate | 5.05% | 5.05% | ||||||||||||||||||
Net book value collateralized | 40,000 | |||||||||||||||||||
3-year loan agreement with Deutsche Bank Co.,Ltd | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Interest-free half-year loan | ¥ 75,000 | ¥ 75,000 | $ 12 | |||||||||||||||||
Interest rate | 1.92% | 1.92% | 1.92% | |||||||||||||||||
Long-term Debt | 55,000 | |||||||||||||||||||
Outstanding balance in next 12 months | ¥ 27,000 | $ 4 | ||||||||||||||||||
2-year loan agreement with Bank of Communications | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Term of loan agreement | 2 years | |||||||||||||||||||
Interest-free half-year loan | ¥ 100,000 | |||||||||||||||||||
Interest rate | 3.65% | 3.65% | 3.65% | |||||||||||||||||
Net book value collateralized | ¥ 110,000 | |||||||||||||||||||
2-year loan agreement with The Export-Import Bank of China with interest rate of 2.10 | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Term of loan agreement | 2 years | |||||||||||||||||||
Interest-free half-year loan | ¥ 817,000 | € 110 | ||||||||||||||||||
Interest rate | 2.10% | 2.10% | 2.10% | |||||||||||||||||
2-year loan agreement with The Export-Import Bank of China with interest rate of 2.70 | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Interest-free half-year loan | ¥ 208,000 | |||||||||||||||||||
Interest rate | 2.70% | 2.70% | 2.70% | |||||||||||||||||
3-year loan agreement with Industrial Bank Co. Ltd | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Term of loan agreement | 3 years | |||||||||||||||||||
Interest rate | 4.10% | 4.10% | 4.10% | |||||||||||||||||
Long-term Debt | ¥ 149,000 | |||||||||||||||||||
7-year loan agreement with bank consortium | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Term of loan agreement | 7 years | |||||||||||||||||||
Interest rate | 4.10% | 4.10% | 4.10% | |||||||||||||||||
7-year loan agreement with Industrial Bank Co.,Ltd | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Term of loan agreement | 7 years | |||||||||||||||||||
Interest-free half-year loan | ¥ 31,000 | |||||||||||||||||||
Interest rate | 3.95% | 3.95% | 3.95% | |||||||||||||||||
3-year loan agreement with China Everbright bank Co., ltd | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Term of loan agreement | 3 years | |||||||||||||||||||
Interest-free half-year loan | ¥ 240,000 | |||||||||||||||||||
Interest rate | 4% | 4% | 4% | |||||||||||||||||
Outstanding balance in next 12 months | ¥ 240,000 | |||||||||||||||||||
Loan Agreement With Jinko Feidong | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Term of loan agreement | 5 years | |||||||||||||||||||
Interest-free half-year loan | ¥ 205,000 | |||||||||||||||||||
Interest rate | 4.75% | 4.75% | 4.75% | |||||||||||||||||
Long-term Debt | ¥ 208,000 | |||||||||||||||||||
Outstanding balance in next 12 months | 51,000 | |||||||||||||||||||
Loan Agreement With Anhui Jinko One | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Interest-free half-year loan | ¥ 83,000 | |||||||||||||||||||
Interest rate | 5.58% | 5.58% | 5.58% | |||||||||||||||||
Loan Agreement With Anhui Jinko Two | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Interest-free half-year loan | ¥ 66,000 | |||||||||||||||||||
Interest rate | 5.58% | 5.58% | 5.58% | |||||||||||||||||
Loan Agreement With Anhui Jinko Three | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Interest-free half-year loan | ¥ 66,000 | |||||||||||||||||||
Interest rate | 5.57% | 5.57% | 5.57% | |||||||||||||||||
Loan Agreement With Jinko Leshan | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Term of loan agreement | 4 years | |||||||||||||||||||
Interest-free half-year loan | ¥ 150,000 | |||||||||||||||||||
Interest rate | 6% | |||||||||||||||||||
Government Background Companies | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Capital injections | ¥ 846,000 | |||||||||||||||||||
Government Background Companies | JinkoSolar (Sichuan) Co., Ltd. | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Capital injections | ¥ 100,000 | ¥ 1,300,000 | ||||||||||||||||||
Government Background Companies | JinkoSolar Technology (Haining) Co., Ltd. ("Haining Jinko") | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Capital injections | ¥ 517,000 | ¥ 517,000 | ||||||||||||||||||
Government Background Companies | Jinko Yiwu | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Capital injections | ¥ 765,000 | |||||||||||||||||||
Government Background Companies | Jinko ShangRao | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Capital injections | ¥ 50,000 | ¥ 150,000 | ¥ 4,500,000 | |||||||||||||||||
Fixed annual return (as a percent) | 4.90% | 5.18% | 5.18% | 5.18% | 4.90% | 4.90% | ||||||||||||||
Term of loan agreement | 5 years | |||||||||||||||||||
Interest-free half-year loan | ¥ 98,000 | ¥ 98,000 | ||||||||||||||||||
Interest rate | 10% | 10% | 10% | |||||||||||||||||
Net book value collateralized | ¥ 2,017,000 | ¥ 2,059,000 | ¥ 2,017,000 | |||||||||||||||||
Carrying value of the loan | 0 | |||||||||||||||||||
Government Background Companies | Jinko Solar Co., Ltd. ("Jiangxi Jinko") | ||||||||||||||||||||
BORROWINGS | ||||||||||||||||||||
Capital injections | ¥ 1,100,000 | |||||||||||||||||||
Equity interest that will be repurchased (as a percent) | 30% |
LEASES (Details)
LEASES (Details) | 12 Months Ended |
Dec. 31, 2022 | |
LEASES | |
Residual value guarantee | false |
Minimum | |
LEASES | |
Operating lease term | 3 years |
Maximum | |
LEASES | |
Operating lease term | 20 years |
LEASES - Operating and finance
LEASES - Operating and finance leases (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Operating leases: | |||
Operating lease liabilities - current | ¥ 65,489 | $ 9,495 | ¥ 62,515 |
Operating lease liabilities - non-current | 339,885 | 49,279 | 385,420 |
Total lease liabilities | 405,374 | 447,935 | |
Operating lease right-of-use assets, net | 396,966 | 57,555 | 438,271 |
Financing leases: | |||
Financing lease liabilities - current | 168,381 | 24,413 | 194,939 |
Financing lease liabilities - non-current | 69,881 | 10,131 | 236,374 |
Total lease liabilities | 238,262 | 431,313 | |
Financing lease right-of-use assets, net | ¥ 558,407 | $ 80,961 | ¥ 628,592 |
LEASES - Components of lease ex
LEASES - Components of lease expenses (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
LEASES | ||
Amortization of right-of-use assets | ¥ 129,869 | ¥ 135,791 |
Interest of lease liabilities | 36,553 | 51,575 |
Expenses for short-term lease within 12 months | 9,154 | 3,052 |
Total lease cost | ¥ 175,576 | ¥ 190,418 |
LEASES - Supplemental cash flow
LEASES - Supplemental cash flow information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash outflows for operating leases | ¥ 72,906 | ¥ 76,400 |
Operating cash outflows for finance leases | 19,926 | 25,974 |
Financing cash outflows for finance leases | 216,722 | 286,292 |
Total cash paid for amounts included in the measurement of lease liabilities: | 309,554 | 388,666 |
Lease obligation accrued in exchange for right-of-use assets: | ||
Operating lease liabilities | 3,476 | 185,472 |
Finance lease liabilities | 132,188 | |
Total lease obligation accrued in exchange for right-of-use assets: | ¥ 3,476 | ¥ 317,660 |
Operating leases: Weighted-average remaining lease term | 6 years 2 months 15 days | 7 years 4 months 6 days |
Operating leases: Weighted-average discount rate | 6.46% | 6.47% |
Financing leases: Weighted-average remaining lease term | 11 months 8 days | 1 year 11 months 8 days |
Financing leases: Weighted-average discount rate | 5.55% | 5.65% |
LEASES - Maturities of lease li
LEASES - Maturities of lease liabilities (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating leases: | ||
2023 | ¥ 85,637 | |
2024 | 84,973 | |
2025 | 75,863 | |
Thereafter | 206,541 | |
Total undiscounted lease payments | 453,014 | |
Less: imputed interest | 47,640 | |
Total lease liabilities | 405,374 | ¥ 447,935 |
Financing leases: | ||
2023 | 236,657 | |
2024 | 34,252 | |
Total undiscounted lease payments | 270,909 | |
Less: imputed interest | 32,647 | |
Total lease liabilities | ¥ 238,262 | ¥ 431,313 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Net income | ¥ 1,565,139 | ¥ 955,572 | ¥ 335,255 |
Less: Net income attributable to non-controlling interests | 944,633 | 234,554 | 104,870 |
Net income attributable to JinkoSolar's ordinary shareholders | 620,506 | 721,018 | 230,385 |
Dilutive effects of call option | (462,752) | ||
Numerator for diluted income/(loss) per share | ¥ 620,506 | ¥ 412,679 | ¥ (232,367) |
Denominator for basic earnings per share - weighted average number of ordinary shares outstanding | 198,004,260 | 190,672,869 | 178,938,853 |
Dilutive effects of call option | (7,500,000) | ||
Denominator for diluted calculation - weighted average number of ordinary shares outstanding | 200,408,494 | 205,719,772 | 171,438,853 |
Continuing operations: | |||
Basic earnings per share attributable to JinkoSolar's ordinary shareholders | ¥ 3.13 | ¥ 3.78 | ¥ 1.29 |
Diluted earnings/(loss) per share attributable to JinkoSolar's ordinary shareholders | ¥ 3.10 | ¥ 2.01 | ¥ (1.36) |
Share-Based Payment Arrangement, Option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Dilutive effects of share options | 2,404,234 | 540,620 | |
Convertible senior note payable | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Dilutive effects of convertible senior notes | ¥ 308,339 | ||
Dilutive effects of Convertible notes | 14,506,283 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
EARNINGS PER SHARE | |||
Antidilutive securities excluded | 14,427,088 | 17,708,332 | 17,708,332 |
EMPLOYEE BENEFITS (Details)
EMPLOYEE BENEFITS (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2013 | Dec. 31, 2012 | |
EMPLOYEE BENEFITS | ||||
Penalty on daily rate basis as a percentage of outstanding contribution | 0.05% | |||
Accrued employee benefits | ¥ 1,071 | ¥ 741 | ¥ 26 | ¥ 12 |
CONVERTIBLE SENIOR NOTES AND _2
CONVERTIBLE SENIOR NOTES AND CALL OPTIONS (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 USD ($) $ / shares | May 17, 2019 USD ($) | |
CONVERTIBLE SENIOR NOTES AND CALL OPTIONS | |||||||
Amount of conversion of convertible securities | ¥ 340,330 | $ 16,000 | |||||
Ordinary shares issued upon a conversion of convertible securities | shares | 3,281,244 | 3,281,244 | |||||
Fair value of convertible notes | ¥ 1,071,000 | ¥ 1,099,000 | |||||
Foreign exchange gain (loss) | (60,000) | 9,000 | |||||
Change in fair value of convertible senior notes | 12,083 | $ 1,752 | (327,762) | ¥ 1,202,082 | |||
Reclassification of change in instrument-specific credit risk | ¥ 0 | $ 0 | 14,252 | ¥ 0 | |||
Proceeds from exercise of call option | 621,059 | ||||||
2024 Convertible Notes | |||||||
CONVERTIBLE SENIOR NOTES AND CALL OPTIONS | |||||||
Aggregate principal amount | $ | $ 1,000 | $ 85,000 | |||||
Interest rate | 4.50% | ||||||
Convertible debt, conversion rate | 52.0833 | 52.0833 | |||||
Convertible debt, conversion price | $ / shares | $ 19.20 | ||||||
Debt covenant, ownership interest threshold | 50% | 50% | |||||
Percentage of principal amount | 100% | 100% | |||||
Percentage of notes repurchased | 100% | 100% | |||||
Fair value of convertible notes | ¥ 12,000 | ||||||
Foreign exchange gain (loss) | 100,000 | 56,000 | |||||
Change in fair value of convertible senior notes | 328,000 | ||||||
Reclassification of change in instrument-specific credit risk | ¥ 14,000 | ||||||
Proceeds from exercise of call option | ¥ 621,000 |
CONVERTIBLE SENIOR NOTES AND _3
CONVERTIBLE SENIOR NOTES AND CALL OPTIONS - Call options (Details) ¥ in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Jan. 22, 2014 shares | May 31, 2019 shares | Feb. 28, 2018 shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) shares | |
CONVERTIBLE SENIOR NOTES AND CALL OPTIONS | ||||||
Issuance of shares (in shares) | shares | 18,687,500 | 16,560,000 | 5,976,272 | |||
Proceeds from exercise of call option | ¥ 621,059 | |||||
American Depositary Shares | ||||||
CONVERTIBLE SENIOR NOTES AND CALL OPTIONS | ||||||
Issuance of shares (in shares) | shares | 3,750,000 | 4,671,875 | 4,140,000 | 1,494,068 | ||
Call Option | ||||||
CONVERTIBLE SENIOR NOTES AND CALL OPTIONS | ||||||
Issuance of shares (in shares) | shares | 1,875,000 | |||||
Derivative asset fair value | $ | $ 30 | |||||
Gain from change in fair value | ¥ 476,000 | |||||
Loss from change in fair value | 136,000 | |||||
Exchange loss for call option | ¥ 14,000 | |||||
Exchange gain for call option | ¥ 300 | |||||
2024 Convertible Notes | ||||||
CONVERTIBLE SENIOR NOTES AND CALL OPTIONS | ||||||
Net proceeds from the offering | $ | $ 30 |
ORDINARY SHARES (Details)
ORDINARY SHARES (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Jan. 22, 2014 USD ($) shares | May 31, 2019 CNY (¥) shares | May 31, 2019 USD ($) $ / shares shares | Feb. 28, 2018 USD ($) $ / shares shares | Dec. 31, 2022 CNY (¥) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 CNY (¥) shares | Dec. 31, 2020 USD ($) shares | |
REFERRED SHARES | ||||||||||
Authorized capital | $ | $ 10 | |||||||||
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 | ||||||||
Common stock offering (in shares) | 18,687,500 | 18,687,500 | 16,560,000 | 5,976,272 | 5,976,272 | |||||
Ordinary shares, par value | $ / shares | $ 0.00002 | $ 0.00002 | $ 0.00002 | $ 0.00002 | ||||||
Ordinary shares, shares outstanding | 201,189,189 | 190,824,913 | ||||||||
Issuance of shares (in shares) | 18,687,500 | 18,687,500 | 16,560,000 | 5,976,272 | 5,976,272 | |||||
Share price in ADR | $ / shares | $ 16 | $ 18.15 | ||||||||
Treasury stock, value, acquired, cost method | ¥ | ¥ 43,000 | ¥ 43,000 | ||||||||
Amount of conversion of convertible securities | 340,330 | $ 16,000 | ||||||||
payments of stock issuance costs | $ 4,000 | $ 4,000 | ¥ 47,148 | $ 6,836 | ||||||
Proceeds from issuance of ordinary shares | ¥ 489,000 | $ 71,000 | $ 71,100 | ¥ 641,065 | ||||||
Issuance of shares | ¥ | ¥ 636,180 | |||||||||
Private Placement | ||||||||||
REFERRED SHARES | ||||||||||
Common stock offering (in shares) | 15,000,000 | 7,713,499 | ||||||||
Issuance of shares (in shares) | 15,000,000 | 7,713,499 | ||||||||
Shares issue price per share | $ / shares | $ 4 | $ 4.54 | ||||||||
Issuance of shares | $ | $ 126,300 | $ 35,000 | ||||||||
At-the-market offering | ||||||||||
REFERRED SHARES | ||||||||||
Proceeds from issuance of ordinary shares | $ | $ 98,000 | |||||||||
American Depositary Shares | ||||||||||
REFERRED SHARES | ||||||||||
Common stock offering (in shares) | 3,750,000 | 4,671,875 | 4,671,875 | 4,140,000 | 1,494,068 | 1,494,068 | ||||
Issuance of shares (in shares) | 3,750,000 | 4,671,875 | 4,671,875 | 4,140,000 | 1,494,068 | 1,494,068 | ||||
Treasury stock, shares, acquired | 736,460 | 736,460 | 305,660 | 305,660 | ||||||
Treasury stock, value, acquired, cost method | ¥ | ¥ 29,000 | |||||||||
Other Common Stock | ||||||||||
REFERRED SHARES | ||||||||||
Treasury stock, shares, acquired | 2,945,840 | 2,945,840 | 1,222,640 | 1,222,640 |
SUBSIDIARY'S OFFERING OF ITS _2
SUBSIDIARY'S OFFERING OF ITS EQUITY INTERESTS (Details) ¥ in Thousands, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Jan. 26, 2022 CNY (¥) | Apr. 30, 2022 CNY (¥) | Oct. 31, 2020 CNY (¥) | Oct. 31, 2020 USD ($) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Jan. 25, 2022 | |
SUBSIDIARY'S OFFERING OF ITS EQUITY INTERESTS | ||||||||
Contribution from non-controlling interest shareholders | ¥ 17,000 | ¥ 865,000 | ||||||
Non-controlling interest | ||||||||
SUBSIDIARY'S OFFERING OF ITS EQUITY INTERESTS | ||||||||
Contribution from non-controlling interest shareholders | 17,000 | 865,000 | ||||||
Additional paid in capital | ||||||||
SUBSIDIARY'S OFFERING OF ITS EQUITY INTERESTS | ||||||||
Contribution from non-controlling interest shareholders | ¥ 0 | ¥ 0 | ||||||
Jinko Solar Co., Ltd. ("Jiangxi Jinko") | ||||||||
SUBSIDIARY'S OFFERING OF ITS EQUITY INTERESTS | ||||||||
Ownership interest held | 58.62% | |||||||
Amount of dividends declared | ¥ 230,000 | |||||||
Amount of dividends distributed | ¥ 95,000 | |||||||
Jiangxi Jinko | ||||||||
SUBSIDIARY'S OFFERING OF ITS EQUITY INTERESTS | ||||||||
Percentage of ownership | 73.30% | 73.30% | ||||||
Jinko Solar Co., Ltd. ("Jiangxi Jinko") | ||||||||
SUBSIDIARY'S OFFERING OF ITS EQUITY INTERESTS | ||||||||
Percentage of ownership | 58.60% | |||||||
Non-controlling interests' ownership of the subsidiary | 41.38% | 26.72% | ||||||
Jinko Solar Co., Ltd. ("Jiangxi Jinko") | IPO | ||||||||
SUBSIDIARY'S OFFERING OF ITS EQUITY INTERESTS | ||||||||
Net proceeds from IPO | ¥ 9,723,000 | |||||||
Jinko Solar Co., Ltd. ("Jiangxi Jinko") | IPO | Non-controlling interest | ||||||||
SUBSIDIARY'S OFFERING OF ITS EQUITY INTERESTS | ||||||||
Net proceeds from IPO | 6,419,000 | |||||||
Jinko Solar Co., Ltd. ("Jiangxi Jinko") | IPO | Additional paid in capital | ||||||||
SUBSIDIARY'S OFFERING OF ITS EQUITY INTERESTS | ||||||||
Net proceeds from IPO | ¥ 3,304,000 | |||||||
JinkoSolar International Development Limited | ||||||||
SUBSIDIARY'S OFFERING OF ITS EQUITY INTERESTS | ||||||||
Net of cash disposed of, cash payment from, disposal of subsidiaries | ¥ 3,100,000 | $ 461 | ||||||
Contribution from non-controlling interest shareholders | ¥ 140,000 | |||||||
JinkoSolar International Development Limited | Jiangxi Jinko | ||||||||
SUBSIDIARY'S OFFERING OF ITS EQUITY INTERESTS | ||||||||
Percentage of ownership | 26.70% | 26.70% |
SHARE BASED COMPENSATION (Detai
SHARE BASED COMPENSATION (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||
Oct. 10, 2014 installment | Feb. 28, 2022 shares | Aug. 31, 2021 shares | Aug. 31, 2014 installment shares | Aug. 31, 2009 shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) shares | Dec. 31, 2020 CNY (¥) shares | Dec. 31, 2022 $ / shares | Dec. 31, 2019 shares | Jul. 31, 2009 shares | |
SHARE BASED COMPENSATION | ||||||||||||
Number of vesting increments | installment | 5 | |||||||||||
Market value of ordinary shares | (per share) | ¥ 71.18 | $ 10.22 | ||||||||||
Intrinsic value of options exercised | ¥ | ¥ 8,000 | ¥ 6,000 | ¥ 297,000 | |||||||||
Cash received from the exercise of share options | ¥ 5,000 | $ 729 | ¥ 10,185 | ¥ 114,758 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 172,000 | 347,536 | 716,748 | 4,555,288 | ||||||||
Share-Based Payment Arrangement, Option | ||||||||||||
SHARE BASED COMPENSATION | ||||||||||||
Number of vesting increments | installment | 5 | |||||||||||
Restricted shares | ||||||||||||
SHARE BASED COMPENSATION | ||||||||||||
Unrecognized share-based compensation expense | ¥ | ¥ 256,000 | ¥ 20,000 | ¥ 0 | |||||||||
Number of restricted shares issued | 6,814,460 | 318,600 | ||||||||||
2014 Plan | ||||||||||||
SHARE BASED COMPENSATION | ||||||||||||
Ordinary shares that may be issued | 12,796,745 | |||||||||||
Contractual life | 10 years | |||||||||||
2009 Plan | ||||||||||||
SHARE BASED COMPENSATION | ||||||||||||
Ordinary shares that may be issued | 9,325,122 | |||||||||||
Contractual life | 7 years | |||||||||||
2009 Plan | Share-based Payment Arrangement, Employee | ||||||||||||
SHARE BASED COMPENSATION | ||||||||||||
Options granted | 953,200 | |||||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 36 months | |||||||||||
Long-term incentive plan 2021 | Restricted shares | ||||||||||||
SHARE BASED COMPENSATION | ||||||||||||
Contractual life | 5 years | |||||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 10 years | |||||||||||
Number of restricted shares issued | 354,000 | |||||||||||
Long-term incentive plan 2022 | Restricted shares | ||||||||||||
SHARE BASED COMPENSATION | ||||||||||||
Contractual life | 3 years | |||||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 12 years | |||||||||||
Number of restricted shares issued | 16,684,600 |
SHARE BASED COMPENSATION - Stoc
SHARE BASED COMPENSATION - Stock Option Activity (Details) ¥ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 $ / shares shares | Dec. 31, 2021 CNY (¥) $ / shares shares | Dec. 31, 2020 CNY (¥) $ / shares shares | Dec. 31, 2019 CNY (¥) $ / shares shares | Dec. 31, 2022 CNY (¥) shares | |
Number of option outstanding | |||||
Balance as at beginning balance | shares | 347,536 | 716,748 | 4,555,288 | ||
Exercise | shares | (175,536) | (105,200) | (3,750,540) | ||
Forfeited | shares | (264,012) | (88,000) | |||
Balance as at ending balance | shares | 172,000 | 347,536 | 716,748 | 4,555,288 | |
Vested as of December 31,2022 | shares | 172,000 | ||||
Vested and exercisable as of December 31, 2022 | shares | 172,000 | ||||
Weighted-Average Exercise Price | |||||
Balance as at beginning balance | $ 3.65 | $ 3.46 | $ 3.34 | ||
Granted | 0 | ||||
Exercise | 3.35 | 3.29 | 3.32 | ||
Forfeited | 3.29 | 3.29 | |||
Balance as of ending balance | 3.96 | $ 3.65 | $ 3.46 | $ 3.34 | |
Vested as of December 31,2022 | 3.96 | ||||
Vested and exercisable as of December 31, 2022 | $ 3.96 | ||||
Weighted-Average Remaining Contractual Term | |||||
Balance as of December 31 2022 | 2 years 8 months 8 days | 3 years 10 months 2 days | 4 years 3 months | 4 years 8 months 23 days | |
Vested as of December 31,2022 | 2 years 8 months 8 days | ||||
Vested and exercisable as of December 31, 2022 | 2 years 8 months 8 days | ||||
Aggregate Intrinsic value | |||||
Balance as of December 31 2022 | ¥ | $ 17,373 | $ 58,836 | $ 73,354 | ¥ 8,305 | |
Vested as of December 31,2022 | ¥ | 8,305 | ||||
Vested and exercisable as of December 31, 2022 | ¥ | ¥ 8,305 |
SHARE BASED COMPENSATION - Summ
SHARE BASED COMPENSATION - Summary of Non-vested Shares (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Weighted-average fair value on grant date (RMB/Share) | ||||
Fair value of shares vested | ¥ 5,000 | ¥ 2,000 | ¥ 4,000 | |
Proceeds from exercise of share options | ¥ 5,000 | $ 729 | ¥ 10,185 | ¥ 114,758 |
SHARE BASED COMPENSATION - Rest
SHARE BASED COMPENSATION - Restricted Shares (Details) - CNY (¥) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Share-based compensation | ¥ 923 | ||
Restricted shares | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Unvested as of January 1, 2021 | 318,600 | ||
Granted | 16,684,600 | 354,000 | |
Vested | (10,188,740) | (35,400) | |
Unvested as of December 31, 2022 | 6,814,460 | 318,600 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Unvested as of January 1, 2021 | ¥ 86.38 | ||
Granted | 72.10 | ¥ 86.38 | |
Vested | 72.08 | 86.38 | |
Unvested as of December 31, 2022 | ¥ 72.38 | ¥ 86.38 | |
Share-based compensation | ¥ 968,000 | ¥ 9,000 | 0 |
Unrecognized compensation expenses | ¥ 256,000 | ¥ 20,000 | ¥ 0 |
Weighted-average period | 2 years 3 months 10 days | 4 years 6 months 29 days | 0 years |
SHARE BASED COMPENSATION - Shar
SHARE BASED COMPENSATION - Share options activities (Details) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2022 $ / shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Dec. 31, 2021 CNY (¥) $ / shares shares | Dec. 31, 2020 CNY (¥) $ / shares | Dec. 31, 2020 CNY (¥) shares | Dec. 31, 2019 CNY (¥) $ / shares shares | Dec. 31, 2022 CNY (¥) ¥ / shares shares | Oct. 31, 2022 shares | |
Number of option outstanding | ||||||||
Balance as at beginning balance | 347,536 | 716,748 | 4,555,288 | |||||
Exercise | (175,536) | (105,200) | (3,750,540) | |||||
Balance as at ending balance | 172,000 | 347,536 | 716,748 | 4,555,288 | ||||
Vested and expected to vest as of December 31, 2022 | 172,000 | |||||||
Vested and exercisable as of December 31, 2022 | 172,000 | |||||||
Weighted-Average Exercise Price | ||||||||
Balance as at beginning balance | $ / shares | $ 3.65 | $ 3.46 | $ 3.34 | |||||
Granted | $ / shares | 0 | |||||||
Exercise | $ / shares | 3.35 | 3.29 | 3.32 | |||||
Balance as of ending balance | $ / shares | 3.96 | $ 3.65 | $ 3.46 | $ 3.34 | ||||
Vested and expected to vest as of December 31, 2022 | $ / shares | 3.96 | |||||||
Vested and exercisable as of December 31, 2022 | $ / shares | $ 3.96 | |||||||
Weighted-Average Remaining Contractual Term | ||||||||
Balance as of December 31 2022 | 2 years 8 months 8 days | 3 years 10 months 2 days | 4 years 3 months | 4 years 8 months 23 days | ||||
Vested and expected to vest as of December 31, 2022 | 2 years 8 months 8 days | |||||||
Vested and exercisable as of December 31, 2022 | 2 years 8 months 8 days | |||||||
Aggregate Intrinsic value | ||||||||
Balance as of December 31 2022 | ¥ | $ 17,373 | $ 58,836 | ¥ 58,836 | $ 73,354 | ¥ 8,305 | |||
Vested and expected to vest as of December 31, 2022 | ¥ | 8,305 | |||||||
Vested and exercisable as of December 31, 2022 | ¥ | ¥ 8,305 | |||||||
Share-based compensation expenses | ¥ | ¥ 923 | |||||||
Jiangxi Jinko 2022 Plan | Jinko Solar Co., Ltd. ("Jiangxi Jinko") [Member] | ||||||||
SHARE BASED COMPENSATION | ||||||||
Ordinary shares reserved for issuance | 40,187,375 | |||||||
Number of option outstanding | ||||||||
Granted | 32,149,900 | |||||||
Balance as at ending balance | 32,149,900 | |||||||
Vested and expected to vest as of December 31, 2022 | 32,149,900 | |||||||
Vested and exercisable as of December 31, 2022 | 32,149,900 | |||||||
Weighted-Average Exercise Price | ||||||||
Granted | ¥ / shares | ¥ 10.78 | |||||||
Balance as of ending balance | ¥ / shares | ¥ 10.78 | |||||||
Vested and expected to vest as of December 31, 2022 | ¥ / shares | ¥ 10.78 | |||||||
Vested and exercisable as of December 31, 2022 | ¥ / shares | ¥ 10.78 | |||||||
Weighted-Average Remaining Contractual Term | ||||||||
Balance as of December 31 2022 | 2 years 10 months 20 days | |||||||
Vested and expected to vest as of December 31, 2022 | 2 years 10 months 20 days | |||||||
Vested and exercisable as of December 31, 2022 | 2 years 10 months 20 days | |||||||
Aggregate Intrinsic value | ||||||||
Balance as of December 31 2022 | ¥ | ¥ 124,420 | |||||||
Vested and expected to vest as of December 31, 2022 | ¥ | 124,420 | |||||||
Vested and exercisable as of December 31, 2022 | ¥ | ¥ 124,420 | |||||||
Share-based compensation expenses | ¥ | ¥ 33,000 |
SHARE BASED COMPENSATION - Expe
SHARE BASED COMPENSATION - Expense Allocation (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SHARE BASED COMPENSATION | |||
Share-based compensation | ¥ 923 | ||
Costs of revenues | |||
SHARE BASED COMPENSATION | |||
Share-based compensation | ¥ 17,676 | ¥ 131 | 329 |
Selling expenses | |||
SHARE BASED COMPENSATION | |||
Share-based compensation | 7,101 | 131 | 462 |
General and administration expenses | |||
SHARE BASED COMPENSATION | |||
Share-based compensation | 974,564 | ¥ 9,622 | 145 |
Research and development expenses | |||
SHARE BASED COMPENSATION | |||
Share-based compensation | ¥ 1,528 | ¥ (13) |
RELATED PARTY TRANSACTIONS AN_3
RELATED PARTY TRANSACTIONS AND BALANCES - Balances (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Outstanding amounts due from related parties: | |||
Prepayment and other receivables from related parties | ¥ 23,105 | ¥ 17,348 | |
Long-term receivables due from Sweihan PV | 37,760 | ||
Subtotal | 52,363 | 3,292 | |
Other payables due to a related party: | |||
Accounts payable - related parties | 0 | $ 0 | 15,863 |
Advances from a related party | |||
Advances from JinkoPower | 3,829 | ||
Jiangxi Jinko Engineering for sales of solar modules and others [Member] | |||
Outstanding amounts due from related parties: | |||
Accounts receivables from related parties | 139,713 | 29,417 | |
Jinko Power | |||
Outstanding amounts due from related parties: | |||
Notes receivables from a related party | 282,824 | ||
Other assets from related parties | 3,292 | ||
Notes payables due to a related party | |||
Other payables due to a related party | 5,964 | 2,230 | |
Xinte Silicon for inventory purchase | |||
Outstanding amounts due from related parties: | |||
Advances to a related party | 56,860 | ||
Notes payables due to a related party | |||
Notes payables due to Xinte Silicon for inventory purchase | 419,500 | ||
JinkoPower for outsourcing services | |||
Outstanding amounts due from related parties: | |||
Prepayment and other receivables from related parties | 5,664 | 11,990 | |
JinkoPower for disposal of solar power projects | |||
Outstanding amounts due from related parties: | |||
Prepayment and other receivables from related parties | 12,953 | ||
Other assets from related parties | 14,603 | ||
Sweihan PV Power Company P.S.J.C ("Sweihan PV", which develops and operates solar power projects in Dubai) for technical services | |||
Outstanding amounts due from related parties: | |||
Prepayment and other receivables from related parties | 1,075 | ||
JinkoPower for miscellaneous transactions | |||
Outstanding amounts due from related parties: | |||
Prepayment and other receivables from related parties | ¥ 3,413 | 5,358 | |
Jinko-Tiansheng | |||
Other payables due to a related party: | |||
Accounts payable - related parties | ¥ 15,863 |
RELATED PARTY TRANSACTIONS AN_4
RELATED PARTY TRANSACTIONS AND BALANCES - Transaction From Related Party (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from sales of products and providing services to related parties | ||||
Income of financing guarantees | ¥ 6,364 | ¥ 14,688 | ||
Service expenses and silicon procurement provided by related parties | ||||
Processing fee of OEM service charged by Jiangsu Jinko-Tiansheng | ¥ 5,310 | ¥ 27,485 | ||
Solar project management service provided by JinkoPower | 7,133 | 8,753 | 9,443 | |
Sweihan Pv | ||||
Revenue from sales of products and providing services to related parties | ||||
Revenue from related parties | ¥ 0 | ¥ 0 | ¥ 51,202 | |
Income of financing guarantees | 2,979 | 660 | 3,721 | |
JinkoPower | ||||
Revenue from sales of products and providing services to related parties | ||||
Revenue from related parties | 325,175 | 27,099 | 5,072 | |
Revenue from rental services | 5,041 | 4,004 | 2,177 | |
Service expenses and silicon procurement provided by related parties | ||||
Rental expenses from related parties | 16 | |||
Jiangxi Desun | ||||
Service expenses and silicon procurement provided by related parties | ||||
Rental expenses from related parties | ¥ 1,100 | ¥ 1,000 | ||
Xinte Silicon | ||||
Service expenses and silicon procurement provided by related parties | ||||
Silicon procurement | ¥ 824,785 | ¥ 0 |
RELATED PARTY TRANSACTIONS AN_5
RELATED PARTY TRANSACTIONS AND BALANCES - Transactions (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||||
Mar. 30, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction | ||||||
Guarantor obligations proceeds of guarantee fee | ¥ 0 | ¥ 21,000 | ¥ 18,000 | |||
Guarantor obligations, guarantee fee income receivable | 3,000 | 3,000 | 107,000 | |||
Guarantor obligations, carrying value | 0 | 12,000 | 57,000 | |||
Related party transaction, other revenues from transactions with related party | 0 | 6,000 | 15,000 | |||
Payments for other fees | 5,310 | 27,485 | ||||
Gain on disposition | ¥ 12,474 | |||||
Minimum | ||||||
Related Party Transaction | ||||||
Amortization period for guarantee liability | 1 year | |||||
Maximum | ||||||
Related Party Transaction | ||||||
Amortization period for guarantee liability | 16 years | |||||
Jinko-Tiansheng | ||||||
Related Party Transaction | ||||||
Payments for other fees | ¥ 0 | 5,000 | 27,000 | |||
Gain on disposition | 12,000 | |||||
Sweihan Pv | ||||||
Related Party Transaction | ||||||
Revenues from sales of products and provision of processing services to related party | 0 | 0 | 51,202 | |||
Jiangxi Desun | ||||||
Related Party Transaction | ||||||
Lessor, operating lease, term of contract | 10 years | |||||
Rental expenses from related parties | 1,100 | ¥ 1,000 | ||||
Jinko Power | ||||||
Related Party Transaction | ||||||
Amount of offset the debts and receivables | ¥ 71,000 | |||||
Revenues from sales of products and provision of processing services to related party | 325,000 | 27,000 | 5,000 | |||
Due from related parties | 423,000 | 29,000 | ||||
Revenue from rental services | 5,000 | 4,000 | 2,000 | |||
Payments made in advance related to service fee | 7,000 | 9,000 | 9,000 | |||
Electricity fee charged by related party | 27,465 | 7,725 | ¥ 3,088 | |||
Xinte Silicon | ||||||
Related Party Transaction | ||||||
Silicon procurement | ¥ 824,785 | ¥ 0 |
CERTAIN RISKS AND CONCENTRATI_2
CERTAIN RISKS AND CONCENTRATION (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Sales Revenue, Goods, Net | |||
Concentration Risk | |||
Concentration risk percentage | 4.60% | 4.60% | 5.30% |
Sales Revenue, Goods, Net | Foreign Currency Concentration Risk | |||
Concentration Risk | |||
Concentration risk percentage | 58.09% | ||
Accounts Receivable | |||
Concentration Risk | |||
Concentration risk percentage | 10% | 10% | 10% |
CERTAIN RISKS AND CONCENTRATI_3
CERTAIN RISKS AND CONCENTRATION - Schedule of Major Customers (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplier five | |||
Concentration Risk | |||
Concentration risk percentage | 77.40% | 78.70% | 70% |
Supplier Concentration Risk [Member] | Supplier three | Minimum [Member] | |||
Concentration Risk | |||
Concentration risk percentage | 10% | ||
Accounts Receivable | |||
Concentration Risk | |||
Concentration risk percentage | 10% | 10% | 10% |
Sales Revenue, Goods, Net | |||
Concentration Risk | |||
Concentration risk percentage | 4.60% | 4.60% | 5.30% |
Cost of Goods and Service, Product and Service Benchmark [Member] | Supplier three | |||
Concentration Risk | |||
Concentration risk percentage | 28.50% | ||
Cost of Goods and Service, Product and Service Benchmark [Member] | Supplier Concentration Risk [Member] | Supplier two | |||
Concentration Risk | |||
Concentration risk percentage | 34% | ||
Cost of Goods and Service, Product and Service Benchmark [Member] | Supplier Concentration Risk [Member] | Supplier two | Minimum [Member] | |||
Concentration Risk | |||
Concentration risk percentage | 10% | ||
Cost of Goods and Service, Product and Service Benchmark [Member] | Supplier Concentration Risk [Member] | Supplier four | |||
Concentration Risk | |||
Concentration risk percentage | 19.60% | ||
Cost of Goods and Service, Product and Service Benchmark [Member] | Supplier Concentration Risk [Member] | Supplier four | Minimum [Member] | |||
Concentration Risk | |||
Concentration risk percentage | 10% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Capital commitments (Details) ¥ in Thousands | Dec. 31, 2022 CNY (¥) |
COMMITMENTS AND CONTINGENCIES. | |
2023 | ¥ 6,357,915 |
2024 | 5,786,393 |
Thereafter | 1,446,598 |
Total | 13,590,906 |
Purchase Obligation | ¥ 13,590,906 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Contingencies and Guarantees (Details) € in Thousands, ¥ in Millions, $ in Millions | 9 Months Ended | |||
Jun. 17, 2022 USD ($) MWh | Sep. 28, 2020 EUR (€) | Sep. 30, 2020 CNY (¥) | Mar. 10, 2023 USD ($) | |
Contingencies [Line Items] | ||||
Amount compensated by the supplier | ¥ | ¥ 83 | |||
Jiangxi Jinko | ||||
Contingencies [Line Items] | ||||
Supply agreement amount | $ 363.3 | |||
Construction installation electric power energy capacity | MWh | 32 | |||
Plant defective modules in amount | $ 14.1 | |||
Owner of the plant in the amount | 14.6 | |||
Total of plant and interest and costs | $ 392 | |||
Invoice amount failed to pay by the Indian customer | $ 5.3 | |||
Case Against Hanwha Q CELLS GmbH | ||||
Contingencies [Line Items] | ||||
Maximum imposition of penalties | € | € 250,000 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) $ in Thousands, € in Millions, ¥ in Millions | 12 Months Ended | ||||||||||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 JPY (¥) | May 31, 2022 | Dec. 31, 2021 USD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 JPY (¥) | Dec. 31, 2020 USD ($) | |
FAIR VALUE MEASUREMENTS | |||||||||||
Change in fair value of equity securities | ¥ 102,000,000 | ||||||||||
Term of puttable bond | 2 years | 2 years | 2 years | 2 years | |||||||
Unrealized gain on the available-for-sale securities | 1,000,000 | ||||||||||
Change in fair value of warrants | 0 | ¥ 0 | ¥ 0 | ||||||||
Impairment of long-lived assets to be disposed of | 373,732,000 | $ 54,186 | 273,713,000 | 114,168,000 | |||||||
Change in fair value of derivative forward contracts | |||||||||||
FAIR VALUE MEASUREMENTS | |||||||||||
Derivative, notional amount | 560,000 | € 250 | ¥ 2,000 | $ 630,000 | € 20 | ¥ 0 | |||||
Loss/ gain on derivative | ¥ 164,000,000 | 289,000,000 | |||||||||
Foreign exchange option | |||||||||||
FAIR VALUE MEASUREMENTS | |||||||||||
Derivative, notional amount | 65,000 | € 50 | 120,000 | $ 0 | |||||||
Derivative sold, notional amount | $ | $ 50,000 | $ 90,000 | $ 170,000 | ||||||||
Remaining maturity of foreign currency derivative | 12 months | 12 months | |||||||||
Loss/ gain on derivative | ¥ 4,000,000 | 19,000,000 | 4,000,000 | ||||||||
Convertible senior note payable | |||||||||||
FAIR VALUE MEASUREMENTS | |||||||||||
Loss/ gain on derivative | ¥ 12,000,000 | ¥ 192,000,000 | |||||||||
Interest Rate Swap | |||||||||||
FAIR VALUE MEASUREMENTS | |||||||||||
Derivative, notional amount | ¥ 79,000,000 |
FAIR VALUE MEASUREMENTS (Assets
FAIR VALUE MEASUREMENTS (Assets and Liabilities on a Recurring Basis) (Details) $ in Thousands, ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Liabilities: | |||||
Derivative Liability Statement Of Financial Position Extensible Enumeration Not Disclosed Flag | true | true | |||
Convertible senior notes | ¥ | ¥ 1,099 | ¥ 1,071 | |||
Fair Value, Measurements, Recurring | |||||
Assets: | |||||
Equity securities applying fair value option | $ 178,871 | ||||
Liabilities: | |||||
Guarantee liabilities | $ 12,142 | ||||
Available-for-sale securities | $ 104,499 | ||||
Convertible senior notes | 1,070,699 | 1,098,736 | |||
Foreign exchange forward contracts- payable | 59,911 | ||||
Derivative liability interest rate swap | 12,294 | ||||
Foreign exchange forward contracts- payable | 59,911 | ||||
Fair Value, Measurements, Recurring | Foreign Exchange Forward Contract [Member] | |||||
Assets: | |||||
Derivative assets | 119,625 | 73,532 | |||
Fair Value, Measurements, Recurring | Foreign exchange option | |||||
Liabilities: | |||||
Foreign exchange forward contracts- payable | 2,659 | ||||
Derivative liability interest rate swap | 3,226 | ||||
Foreign exchange forward contracts- payable | 2,659 | ||||
Fair Value, Measurements, Recurring | Level 1 | |||||
Liabilities: | |||||
Guarantee liabilities | 0 | ||||
Convertible senior notes | 0 | ||||
Derivative liability interest rate swap | 0 | ||||
Fair Value, Measurements, Recurring | Level 1 | Foreign Exchange Forward Contract [Member] | |||||
Assets: | |||||
Derivative assets | 0 | ||||
Fair Value, Measurements, Recurring | Level 1 | Foreign exchange option | |||||
Liabilities: | |||||
Foreign exchange forward contracts- payable | 0 | ||||
Foreign exchange forward contracts- payable | 0 | ||||
Fair Value, Measurements, Recurring | Level 2 | |||||
Assets: | |||||
Equity securities applying fair value option | 178,871 | ||||
Liabilities: | |||||
Foreign exchange forward contracts- payable | 59,911 | ||||
Foreign exchange forward contracts- payable | 59,911 | ||||
Fair Value, Measurements, Recurring | Level 2 | Foreign Exchange Forward Contract [Member] | |||||
Assets: | |||||
Derivative assets | 119,625 | 73,532 | |||
Fair Value, Measurements, Recurring | Level 3 [Member] | |||||
Liabilities: | |||||
Guarantee liabilities | 12,142 | ||||
Available-for-sale securities | $ 104,499 | ||||
Convertible senior notes | 1,070,699 | 1,098,736 | |||
Derivative liability interest rate swap | 12,294 | ||||
Fair Value, Measurements, Recurring | Level 3 [Member] | Foreign exchange option | |||||
Liabilities: | |||||
Foreign exchange forward contracts- payable | 2,659 | ||||
Derivative liability interest rate swap | $ 3,226 | ||||
Foreign exchange forward contracts- payable | $ 2,659 |
FAIR VALUE MEASUREMENTS (Asse_2
FAIR VALUE MEASUREMENTS (Assets and Liabilities Measured Using Unobservable Inputs) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Call Option [Member] | |||
Balance at January 1, | ¥ 756,929 | ¥ 294,178 | |
Foreign exchange gain/(loss) | 251 | (13,539) | |
Change in fair value of call options | (136,121) | 476,290 | |
Settlement of call options | (621,059) | ||
Balance at December 31, | 756,929 | ||
Convertible Senior Notes | |||
Balance at January 1, | ¥ 1,098,736 | 1,831,612 | 728,216 |
Foreign exchange loss/(gain) | 60,038 | (8,560) | (38,360) |
Change in fair value of convertible senior notes | (12,083) | 327,762 | (1,202,082) |
Change in the instrument-specific credit risk | (100,158) | (56,224) | (60,326) |
Conversion of convertible senior notes | (340,330) | ||
Balance at December 31, | ¥ 1,070,699 | ¥ 1,098,736 | ¥ 1,831,612 |
FAIR VALUE MEASUREMENTS (Change
FAIR VALUE MEASUREMENTS (Changes in fair value of Foreign Exchange Option) (Details) - Foreign exchange option - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, assets measured on recurring basis, unobservable input reconciliation | |||
Balance at January 1, | ¥ (2,659) | ¥ (12,924) | |
Purchase of foreign exchange options | 3,596 | (8,544) | ¥ (9,316) |
Change in fair value of foreign exchange options | (4,163) | 18,809 | (3,608) |
Balance at December 31, | ¥ (3,226) | ¥ (2,659) | ¥ (12,924) |
FAIR VALUE MEASUREMENTS (Chan_2
FAIR VALUE MEASUREMENTS (Changes in fair value of rate swap derivative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Change in fair value of interest rate swap | ¥ 0 | $ 0 | ¥ 0 | ¥ 78,878 |
Interest Rate Swap | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation | ||||
Balance at January 1, | 12,294 | 61,272 | ||
Change in fair value of interest rate swap | 78,878 | |||
Change in fair value of interest rate swap cash flow hedges | 12,294 | |||
Cash settlement | ¥ (12,294) | ¥ (140,150) | ||
Balance at December 31, | ¥ 12,294 |
FAIR VALUE MEASUREMENTS (Fair V
FAIR VALUE MEASUREMENTS (Fair Value Of Rap Cap Derivative) (Details) - Interest Rate Cap [Member] - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
FAIR VALUE MEASUREMENTS | |||
Balance at January 1, | ¥ 12,142 | ¥ 57,332 | ¥ 72,019 |
Amortization | (6,365) | (14,687) | |
Cancellation | ¥ (12,142) | (38,825) | |
Balance at December 31, | ¥ 12,142 | ¥ 57,332 |
FAIR VALUE MEASUREMENTS (Chan_3
FAIR VALUE MEASUREMENTS (Change in Fair Value of Derivatives) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Convertible Senior Notes | ||||
FAIR VALUE MEASUREMENTS | ||||
Change in fair value of derivatives | ¥ (12,083) | ¥ 327,762 | ¥ (1,202,082) | |
Change in fair value of derivative forward contracts | ||||
FAIR VALUE MEASUREMENTS | ||||
Change in fair value of derivatives | (150,538) | 393,523 | 61,380 | |
Embedded Derivative Financial Instruments | ||||
FAIR VALUE MEASUREMENTS | ||||
Change in fair value of derivatives | (13,818) | (104,643) | 129,806 | |
Interest Rate Swap | ||||
FAIR VALUE MEASUREMENTS | ||||
Change in fair value of derivatives | 0 | $ 0 | (78,878) | |
Call Option [Member] | ||||
FAIR VALUE MEASUREMENTS | ||||
Change in fair value of derivatives | (136,121) | 476,290 | ||
Foreign exchange option | ||||
FAIR VALUE MEASUREMENTS | ||||
Change in fair value of derivatives | (4,163) | 18,809 | (3,608) | |
"Equity securities Applying fair value option" | ||||
FAIR VALUE MEASUREMENTS | ||||
Change in fair value of derivatives | 101,871 | |||
Total | ||||
FAIR VALUE MEASUREMENTS | ||||
Change in fair value of derivatives | ¥ (78,731) | ¥ 499,330 | ¥ (617,092) |
FAIR VALUE MEASUREMENTS (Signif
FAIR VALUE MEASUREMENTS (Significant Unobservable Inputs) (Details) - Level 3 [Member] | Dec. 31, 2022 |
Convertible Senior Notes | Expected volatility | |
FAIR VALUE MEASUREMENTS | |
Unobservable inputs | 75.47 |
Convertible Senior Notes | Risk free interest rate | |
FAIR VALUE MEASUREMENTS | |
Unobservable inputs | 4.6 |
Convertible Senior Notes | Discount rate | |
FAIR VALUE MEASUREMENTS | |
Unobservable inputs | 29.23 |
Foreign exchange option | Expected volatility | Minimum [Member] | |
FAIR VALUE MEASUREMENTS | |
Unobservable inputs | 8.13 |
Foreign exchange option | Expected volatility | Maximum [Member] | |
FAIR VALUE MEASUREMENTS | |
Unobservable inputs | 0.1000 |
Foreign exchange option | Risk free interest rate | Minimum [Member] | |
FAIR VALUE MEASUREMENTS | |
Unobservable inputs | 0.0109 |
Foreign exchange option | Risk free interest rate | Maximum [Member] | |
FAIR VALUE MEASUREMENTS | |
Unobservable inputs | 0.0203 |
Available-for-sale securities | Risk free interest rate | Minimum [Member] | |
FAIR VALUE MEASUREMENTS | |
Unobservable inputs | 0.0206 |
Available-for-sale securities | Risk free interest rate | Maximum [Member] | |
FAIR VALUE MEASUREMENTS | |
Unobservable inputs | 0.0221 |
Available-for-sale securities | Discount rate | Minimum [Member] | |
FAIR VALUE MEASUREMENTS | |
Unobservable inputs | 0.0537 |
Available-for-sale securities | Discount rate | Maximum [Member] | |
FAIR VALUE MEASUREMENTS | |
Unobservable inputs | 0.0578 |
FAIR VALUE MEASUREMENTS (Chan_4
FAIR VALUE MEASUREMENTS (Changes in Level 3 fair value of available-for-sale securities) (Details) - Fair value of available-for-sale securities [Member] ¥ in Thousands | 12 Months Ended |
Dec. 31, 2022 CNY (¥) | |
Net Investment Income [Line Items] | |
Addition of available-for-sale securities | ¥ 100,000 |
Interest accrual | 3,526 |
Change in fair value of available-for-sale securities | 973 |
Balance at December 31, | ¥ 104,499 |
RESTRICTED NET ASSETS (Details)
RESTRICTED NET ASSETS (Details) ¥ in Millions | Dec. 31, 2022 CNY (¥) |
RESTRICTED NET ASSETS. | |
Restricted net assets | ¥ 24,303 |
Percentage of total assets | 90% |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Millions, ¥ in Billions | 12 Months Ended | ||||
Apr. 23, 2023 CNY (¥) | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 23, 2023 USD ($) | Jan. 05, 2023 shares | |
SUBSEQUENT EVENTS | |||||
Debt Instrument, Term | 1 year | 1 year | |||
Subsequent Event | Jiangxi Jinko | Convertible bonds | |||||
SUBSEQUENT EVENTS | |||||
Aggregate principal amount | ¥ 10 | $ 1,450 | |||
Debt Instrument, Term | 6 years | ||||
Subsequent Event | 2023 Equity Incentive Plan | |||||
SUBSEQUENT EVENTS | |||||
Number of ordinary shares authorized for issuance of option, restricted share or other share-based award | 20,800,000 |
ADDITIONAL INFORMATION-CONDEN_3
ADDITIONAL INFORMATION-CONDENSED FINANCIAL STATEMENTS OF THE PARENT COMPANY - Condensed statements of operations (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS OF THE PARENT COMPANY | |||||
Net revenue | ¥ 31,000 | ¥ 83,127,296 | $ 12,052,325 | ¥ 40,826,521 | ¥ 35,129,459 |
Cost of revenues | (70,848,983) | (10,272,137) | (34,168,686) | (28,957,798) | |
Gross profit | 12,278,313 | 1,780,188 | 6,657,835 | 6,171,661 | |
Total operating income/(expenses) | (11,849,067) | (1,717,953) | (5,555,330) | (4,386,713) | |
Income/(loss) from operations | 429,246 | 62,235 | 1,102,505 | 1,784,948 | |
Share of income from subsidiaries and affiliates | 193,708 | 28,085 | 59,809 | (52,706) | |
Interest income/(expenses), net | (490,703) | (624,029) | (459,234) | ||
Exchange loss | 1,025,891 | 148,741 | (355,499) | (336,523) | |
Income tax expenses | (605,278) | (87,757) | (194,140) | (178,411) | |
Net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders | 620,506 | 89,965 | 721,018 | 230,385 | |
Parent Company | Reportable Legal Entities | |||||
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS OF THE PARENT COMPANY | |||||
Net revenue | 0 | 0 | 0 | ||
Cost of revenues | 0 | 0 | |||
Gross profit | 0 | 0 | |||
Total operating income/(expenses) | (593,204) | (86,007) | (6,150) | 1,227 | |
Other income, net | 1,737 | 5,064 | |||
Income/(loss) from operations | (593,204) | (86,007) | (4,413) | 6,291 | |
Share of income from subsidiaries and affiliates | 1,264,720 | 183,368 | 512,873 | 1,015,006 | |
Interest income/(expenses), net | (19,867) | (2,880) | 36,613 | 8,596 | |
Exchange loss | (18,586) | (2,694) | (14,085) | (73,716) | |
Change in fair value of convertible senior notes and call option | (12,083) | (1,752) | 191,641 | (725,792) | |
Income before income taxes | 620,980 | 90,035 | 722,629 | 230,385 | |
Income tax expenses | (474) | (69) | (1,611) | ||
Net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders | ¥ 620,506 | $ 89,966 | ¥ 721,018 | ¥ 230,385 |
ADDITIONAL INFORMATION-CONDEN_4
ADDITIONAL INFORMATION-CONDENSED FINANCIAL STATEMENTS OF THE PARENT COMPANY - Condensed balance sheets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 10,243,500 | $ 1,485,168 | ¥ 8,321,415 |
Due from subsidiaries | 139,713 | 20,257 | 29,417 |
Other current assets | 3,290,903 | 477,136 | 2,435,057 |
Total current assets | 68,327,294 | 9,906,528 | 45,524,074 |
Non-current assets: | |||
Total assets | 108,662,182 | 15,754,538 | 72,983,487 |
Current liabilities: | |||
Due to subsidiaries | 0 | 0 | 15,863 |
Due to related parties | 3,829 | 555 | |
Total current liabilities | 64,936,186 | 9,414,863 | 45,459,469 |
Convertible senior notes | 1,070,699 | 155,237 | 1,098,736 |
Total liabilities | 81,658,289 | 11,839,341 | 58,696,235 |
Shareholders' equity: | |||
Ordinary shares (USD $0.00002 par value, 500,000,000 shares authorized, 193,770,753 and 204,135,029 shares issued as of December 31, 2021 and December 31, 2022, respectively, 190,824,913 and 201,189,189 shares outstanding as of December 31, 2021 and December 31, 2022, respectively) | 28 | 4 | 26 |
Additional paid-in capital | 9,912,931 | 1,437,240 | 5,617,923 |
Accumulated other comprehensive loss | 217,563 | 31,544 | (154,375) |
Treasury stock, at cost; 2,945,840 ordinary shares as of December 31, 2021 and December 31, 2022 | (43,170) | (6,259) | (43,170) |
Total shareholders' equity | 16,337,235 | 2,368,677 | 11,049,781 |
Total liabilities and shareholders' equity | 108,662,182 | 15,754,538 | 72,983,487 |
Reportable Legal Entities | Parent Company | |||
Current assets: | |||
Cash and cash equivalents | 492,440 | 71,397 | 34,767 |
Due from subsidiaries | 728,019 | 105,553 | 2,532,984 |
Due from related parties | 3,454 | 501 | 3,454 |
Other current assets | 1,671 | 242 | 1,562 |
Total current assets | 1,225,584 | 177,693 | 2,572,767 |
Non-current assets: | |||
Investments in subsidiaries | 16,189,323 | 2,347,231 | 9,781,036 |
Due from subsidiaries - non current | 1,262,124 | ||
Due from related parties - non current | 3,292 | ||
Total assets | 17,414,907 | 2,524,924 | 13,619,219 |
Current liabilities: | |||
Due to subsidiaries | 1,445,183 | ||
Due to related parties | 2,500 | ||
Other current liabilities | 6,973 | 1,011 | 13,377 |
Total current liabilities | 6,973 | 1,011 | 1,461,060 |
Due to related parties - non-current | 9,642 | ||
Convertible senior notes | 1,070,699 | 155,237 | 1,098,736 |
Total liabilities | 1,077,672 | 156,248 | 2,569,438 |
Shareholders' equity: | |||
Ordinary shares (USD $0.00002 par value, 500,000,000 shares authorized, 193,770,753 and 204,135,029 shares issued as of December 31, 2021 and December 31, 2022, respectively, 190,824,913 and 201,189,189 shares outstanding as of December 31, 2021 and December 31, 2022, respectively) | 28 | 4 | 26 |
Additional paid-in capital | 9,912,931 | 1,437,240 | 5,617,923 |
Accumulated other comprehensive loss | 217,563 | 31,544 | (154,375) |
Treasury stock, at cost; 2,945,840 ordinary shares as of December 31, 2021 and December 31, 2022 | (43,170) | (6,259) | (43,170) |
Retained earnings | 6,249,883 | 906,148 | 5,629,377 |
Total shareholders' equity | 16,337,235 | 2,368,677 | 11,049,781 |
Total liabilities and shareholders' equity | ¥ 17,414,907 | $ 2,524,924 | ¥ 13,619,219 |
ADDITIONAL INFORMATION-CONDEN_5
ADDITIONAL INFORMATION-CONDENSED FINANCIAL STATEMENTS OF THE PARENT COMPANY - Condensed balance sheets (Parenthetical) (Details) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | May 31, 2019 | Feb. 28, 2018 |
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS OF THE PARENT COMPANY | ||||
Ordinary shares, par value | $ 0.00002 | $ 0.00002 | $ 0.00002 | $ 0.00002 |
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 | ||
Ordinary shares, shares issued | 204,135,029 | 193,770,753 | ||
Ordinary shares, shares outstanding | 201,189,189 | 190,824,913 | ||
Treasury stock at cost, shares | 2,945,840 | 2,945,840 | ||
Parent Company | Reportable Legal Entities | ||||
ADDITIONAL INFORMATION - CONDENSED FINANCIAL STATEMENTS OF THE PARENT COMPANY | ||||
Ordinary shares, par value | $ 0.00002 | $ 0.00002 | ||
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 | ||
Ordinary shares, shares issued | 204,135,029 | 193,770,753 | ||
Ordinary shares, shares outstanding | 201,189,189 | 190,824,913 | ||
Treasury stock at cost, shares | 2,945,840 | 2,945,840 |
ADDITIONAL INFORMATION-CONDEN_6
ADDITIONAL INFORMATION-CONDENSED FINANCIAL STATEMENTS OF THE PARENT COMPANY - Condensed cash flows (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 CNY (¥) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 CNY (¥) | |
Cash flows from operating activities: | ||||
Net income | ¥ 1,565,139 | $ 226,924 | ¥ 955,572 | ¥ 335,255 |
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Sharebase compensation charges | 1,000,869 | 145,112 | 9,884 | 923 |
Change in fair value of convertible senior notes | 12,083 | 1,752 | (327,762) | 1,202,082 |
Share of income from subsidiaries | (193,708) | (28,085) | (59,809) | 52,706 |
Exchange loss | (1,025,891) | (148,741) | 355,499 | 336,523 |
Changes in operating assets and liabilities: | ||||
(Increase)/decrease in other current assets | (277,283) | (40,201) | (208,125) | (1,112,029) |
Decrease in other non-current assets | (3,417) | (495) | (104,027) | 0 |
Decrease in due to a related party | 3,829 | 555 | 0 | (749) |
Net cash (used in)/provided by operating activities | (5,800,784) | (841,035) | 430,646 | 591,486 |
Cash flows from investing activities: | ||||
Net cash used in investing activities | (12,272,387) | (1,779,329) | (11,309,233) | (4,918,690) |
Cash flows from financing activities: | ||||
Proceeds from exercise of share options | 5,000 | 729 | 10,185 | 114,758 |
Net cash provided by financing activities | 20,018,922 | 2,902,472 | 12,017,851 | 6,297,279 |
Effect of foreign exchange rate changes on cash and cash equivalents | 227,957 | 33,050 | (116,790) | (169,261) |
Net increase in cash and cash equivalents | 2,173,708 | 315,158 | 1,022,474 | 1,800,814 |
Cash, cash equivalents, and restricted cash, beginning of the year | 9,097,246 | 1,318,977 | 8,074,772 | 6,273,958 |
Cash, cash equivalents, and restricted cash, end of the year | 11,270,954 | 1,634,135 | 9,097,246 | 8,074,772 |
Supplemental disclosure of non-cash investing and financing cash flow information | ||||
Proceeds from exercise of share options received in subsequent period | 1,169 | 9,143 | ||
Conversion of convertible senior notes to ordinary shares | 340,330 | |||
Receivables related to At-The-Market offering | 641,065 | |||
Capped Call Options | ||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Change in fair value of call option | 0 | 0 | 136,121 | (476,290) |
Reportable Legal Entities | Parent Company | ||||
Cash flows from operating activities: | ||||
Net income | 620,506 | 89,966 | 721,018 | 230,385 |
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Sharebase compensation charges | 579,368 | 84,000 | ||
Change in fair value of convertible senior notes | 12,083 | 1,752 | (327,762) | 1,202,082 |
Change in fair value of call option | 136,121 | (476,290) | ||
Share of income from subsidiaries | (1,264,720) | (183,368) | (512,873) | (1,015,006) |
Guarantee income | (5,064) | |||
Exchange loss | 18,586 | 2,694 | 14,085 | 73,716 |
Changes in operating assets and liabilities: | ||||
Decrease in due from subsidiaries | 1,465,778 | 212,518 | 6,088 | 592,425 |
Decrease in due from a related party | 3,292 | 477 | ||
(Increase)/decrease in other current assets | (1,279) | (186) | 165 | (9,437) |
Decrease in other non-current assets | 11,181 | |||
Decrease in due to subsidiaries | (1,445,183) | (209,532) | (117) | (658,106) |
Decrease in due to a related party | (12,142) | (1,760) | ||
Increase/(decrease) in other current liabilities | (6,403) | (928) | 1,978 | 9,773 |
Net cash (used in)/provided by operating activities | (30,114) | (4,367) | 49,884 | (55,522) |
Cash flows from investing activities: | ||||
Cash collection for loans from subsidiaries | 735,673 | 106,662 | ||
Cash paid for loans to subsidiaries | (289,620) | (41,991) | (1,262,124) | |
Net cash used in investing activities | 446,053 | 64,671 | (1,262,124) | |
Cash flows from financing activities: | ||||
Proceeds from exercise of share options | 5,024 | 729 | 10,185 | 114,758 |
Proceeds from exercise of call option | 621,059 | |||
Proceeds from issuance of ordinary shares | 641,065 | |||
Repurchase of shares | (29,294) | |||
Net cash provided by financing activities | 5,024 | 729 | 1,272,309 | 85,464 |
Effect of foreign exchange rate changes on cash and cash equivalents | 36,710 | 5,323 | (44,809) | (14,992) |
Net increase in cash and cash equivalents | 457,673 | 66,356 | 15,260 | 14,950 |
Cash, cash equivalents, and restricted cash, beginning of the year | 34,767 | 5,041 | 19,507 | 4,557 |
Cash, cash equivalents, and restricted cash, end of the year | 492,440 | 71,397 | 34,767 | 19,507 |
Supplemental disclosure of non-cash investing and financing cash flow information | ||||
Proceeds from exercise of share options received in subsequent period | 1,169 | 9,143 | ||
Conversion of convertible senior notes to ordinary shares | ¥ 340,330 | |||
Transfer receivable due from subsidiaries to investments in subsidiaries | ¥ 1,160,000 | $ 168,184 | ||
Receivables related to At-The-Market offering | ¥ 641,065 |