On the evening of October 20, Jinko Solar announced that it plans to list on the Frankfurt Stock Exchange in Germany through a Global Depositary Receipt (GDR) issuance. Jinko Solar will become the second photovoltaic (PV) company this week, following Sungrow, to disclose plans for issuing GDRs and listing in Germany.
According to the announcement, Jinko Solar aims to raise no more than RMB 4.5 billion or the equivalent in foreign currency through this GDR issuance, which will be primarily used for a 1GW high-efficiency module project in the United States and the Phase II 14GW integrated production base project in Shanxi. The GDR issuance price will be no lower than 90% of the average A-share closing price over the 20 trading days preceding the pricing benchmark date.
1、U.S. 1GW High-Efficiency Module Project
The company plans to establish a wholly-owned subsidiary to implement this project, with a total investment of RMB 499.26 million, fully funded by the proceeds from the GDR issuance. The project will be located in Florida, USA. It is intended to support the company’s local manufacturing and supply chain efforts abroad, accelerating its global transformation from global marketing to global manufacturing, maintaining a leading market share overseas, and enhancing its core competitiveness and profitability.
2、Phase II 14GW Integrated High-Efficiency Module Production Line Project in Shanxi
The project will be carried out by Jinko Solar Intelligent Manufacturing Co., Ltd. in Shanxi, with a total investment of RMB 945.43 million, of which RMB 558.29 million will be funded by the GDR proceeds. The project will be located in the Xiaoxiao River Industrial Park, Shanxi Transformation and Comprehensive Reform Demonstration Zone. The funds raised will mainly be used to add production capacity for N-type modules, further improving the company’s position in the N-type module sector.
3、Phase II 14GW Integrated Slicing and High-Efficiency Cell Production Line Project in Shanxi
This project will be undertaken by Jinko Solar No. 2 Intelligent Manufacturing Co., Ltd. in Shanxi, with a total investment of RMB 2.465 billion, and RMB 1.455 billion of this will be funded by the GDR proceeds. The project will also be located in the Xiaoxiao River Industrial Park, Shanxi Transformation and Comprehensive Reform Demonstration Zone. The funds will primarily be used to increase production capacity for N-type silicon wafers and cells, supporting the Phase II 14GW high-efficiency module integrated production line project.
4、Phase II 14GW Monocrystalline Rod Pulling and Squaring Integrated Production Line Project in Shanxi
The project will be carried out by Jinko Solar No. 3 Intelligent Manufacturing Co., Ltd. in Shanxi, with a total investment of RMB 1.230 billion, of which RMB 726.64 million will be funded by the GDR proceeds. The project will be located in the Xiaoxiao River Industrial Park, Shanxi Transformation and Comprehensive Reform Demonstration Zone. The funds raised will primarily be used to expand production capacity for N-type silicon rods, supporting the Phase II 14GW high-efficiency module integrated production line project.
5、Supplementing Working Capital or Repaying Bank Loans
Jinko Solar intends to allocate RMB 1.26 billion of the GDR proceeds to supplement working capital or repay bank loans to optimize its capital structure, strengthen its capital base, and meet the funding needs for business development. The scale of this allocation is based on the company’s current financial situation, actual operational funding shortfalls, and its future development strategy, ensuring that the overall scale is appropriate.
Source：https://mp.weixin.qq.com/s/XCT3IRfqX5deJSPU1ydA3g