On September 21, 2020, JinkoSolar announced that it will use its subsidiary Jiangxi Jinko to sprint the A-share science and technology innovation board. This means that all photovoltaic companies that have gone public in the United States have all returned and are waiting for the horn of landing.
Jinko’s official announced the return of A subsidiary Jiangxi Jinko’s valuation of 8.5 billion yuan
On September 21, JinkoSolar JinkoSolar Holdings Co., Ltd. (“JinkoSolar”, NYSE code: JKS), one of the global component manufacturing giants, announced today that the board of directors has approved a strategic plan aimed at passing The operating subsidiary Jinko Solar Co., Ltd. (“Jiangxi Jinko”) entered the Chinese capital market.
JinkoSolar said that in the next three years, Jiangxi Jinko is seeking an opportunity to be listed on the STAR Market of the Shanghai Stock Exchange.
To ensure that Jiangxi Jinko is eligible to be listed on the STAR market and raise more funds for expansion, the board of directors also approved Jiangxi Jinko’s equity financing agreement. According to the agreement, China’s well-known third-party investment institutions and JinkoSolar founders Li Xiande, Chen Kangping, Li Xianhua and senior executives have agreed to invest a total of 3.1 billion yuan (approximately US$458 million) in Jiangxi Jinko, accounting for the total amount of Jiangxi Jinko 26.7% equity.
According to a rough estimate before the financing, Jiangxi Jinko’s stock is worth 8.5 billion yuan (approximately US$1.26 billion), which is 15.6% higher than JinkoSolar’s market value on September 18, 2020, compared to the 60 days before September 18, 2020 The average market capitalization is 45.4% higher. By convention, equity financing will be completed by the end of October 2020.
JinkoSolar’s CEO Mr. Chen Kangping said, “Promoting Jiangxi Jinko’s listing on the Sci-tech Innovation Board will provide Jinko with a new source of capital. I believe this will help to consolidate JinkoSolar’s leading position in the solar cell module industry and support Jingko Solar. The company’s long-term growth. We believe that JinkoSolar’s listing on the New York Stock Exchange and Jiangxi Jinko’s joint listing on the Science and Technology Innovation Board will increase our visibility among Chinese and global investors and provide us with more future Opportunity for growth.”
As a photovoltaic module company, as of March 31, 2020, JinkoSolar has an annual production capacity of 17.5GW of silicon wafers, an annual production capacity of 10.6GW of solar cells, and an annual production capacity of 16.0GW of solar modules.
Regarding Jiangxi Jinko’s successful listing on the Science and Technology Innovation Board, the time of listing and its post-listing valuation will depend on a variety of factors, including but not limited to the conditions of China and global capital markets, the regulatory environment of the securities market, and Jiangxi Jing Whether the company’s performance and financial performance meet its listing requirements in China.
The last report is the return of all Chinese photovoltaic companies listed in the United States
In the past two years, US-listed photovoltaic companies have successively announced their return to the Chinese capital market. JinkoSolar is the last US-listed photovoltaic company to announce its return to A.
At the beginning of the century, Chinese photovoltaic companies went public in the United States one after another. Nowadays, these photovoltaic companies have announced their return, and the tide is really up and down. The sad story of Suntech and Yingli being forced to delist will not be repeated. Let’s review the history of those US photovoltaic companies that announced their return.
Trina Solar was the first to set off the tide of return. It is understood that the news of Trina Solar’s privatization was circulating in the market in 2015. Until March 2017, Trina Solar announced the completion of the privatization transaction for US$1.1 billion and submitted a delisting application to the American Stock Exchange. The news was officially confirmed.
Looking back on the return of Trina Solar, the road was bumpy and long. At the critical stage of returning to A shares, Trina Solar was significantly reduced by major shareholders. At the same time, its profitability was questioned due to the successive decline in net interest rates. In March 2018, Trina Solar completed the shareholding system transformation, and by the way denied the news that it would go public through Backdoor Hairun. One year later, in May 2019, Trina Solar finally sent a clear signal to the outside world that the listing application has been accepted and it will sprint to the Sci-tech Innovation Board. At the end of July 2019, when it was only one step away from listing, the Shanghai Stock Exchange suspended its issuance and listing review and required Trina Solar to submit financial information. Finally, in March 2020, its listing application was approved, and it returned to capital on June 10, 2020.
JA Solar followed closely behind and led Trina Solar to return to A shares through a backdoor listing. In December 2017, it was also announced that the company had no privatization plan. Please refrain from spreading rumors. In a blink of an eye, it was quickly delisted in July 2018, and in just five days it was announced that the backdoor Tianye Tonglian would be listed in A shares. After nearly a year of capital operation, JA Solar returned to the capital market in September 2019, and became the fastest delisting and relisting photovoltaic company in a non-stop and vigorous manner!
Canadian Solar announced its privatization in December 2017, and then there was no news. At the end of November 2018, it clearly stated that it would postpone the privatization process. Until July 2020, it is officially announced again that it will spin off the manufacturing sector and seek to land on the Shanghai Stock Exchange Science and Technology Innovation Board or the Shenzhen Stock Exchange’s Growth Enterprise Market. However, unlike Trina and JA, Canadian Canadian will continue to be listed on the Nasdaq.
As the only polysilicon manufacturing company among the listed companies on the US stock market, Daquan Energy has always received less attention. Daquan New Energy is the latest company among the Chinese concept stock photovoltaic companies to go public after the US stocks. After listing, it was once not optimistic and was even given a sell rating by the agency. From 2012 to 2013, Daquan Energy’s stock price hovered at US$1 and received a delisting warning from the New York Stock Exchange. Fortunately, the performance of Daquan New Energy finally took off. In the past two years, with the steady increase in the market share of high-purity polysilicon, it has completely reversed the decline. In January 2016, Daquan Energy stated that it would be listed on the New Third Board, but then Daquan Energy’s strategy has undergone a major change. Recently (June 2020), it announced that it would spin off its subsidiary Xinjiang Daquan, and seek the science and technology innovation board within two years. Listed.
Today’s protagonist, JinkoSolar, is the most calming company among China’s photovoltaic companies. It first revealed its intention to return in May 2020. Perhaps it is the reputation of being No. 1 in module shipments for four consecutive years and the strongest Chinese concept stock in the US stock market, giving JinkoSolar the courage to make up its mind to return to A. JinkoSolar’s return method is exactly the opposite of Canadian Solar’s. Jinko said it will split its power station business back to A, while maintaining its component manufacturing business on the US stock market.
Return to the warm embrace of the motherland by different routes
The photovoltaic companies that went public in the United States were all outstanding in the emerging era of photovoltaics. They have gone through many battles, died or injured, and what they have left has now become the veteran of the photovoltaic industry. The first batch of US-listed photovoltaic companies has ended in the US battlefield, returning to A-shares, and a new sequence of photovoltaic industry is being re-established.
Among the above five Chinese concept stocks, Trina and JA have returned smoothly. Although one chose a backdoor listing, one chose to go through the complete process from application to approval, one chose the mature main board, and the other chose the just launched The science and technology innovation board of China, but it is always the same result by different routes, ending the cold-hearted days in the United States and returning to the warm embrace of the motherland.
Canadian Solar, Daquan, and JinkoSolar have basically the same return route-splitting their subsidiaries back to A, and jointly listing in China and the United States.
No matter which way you return, millions of Chinese investors look forward to your arrival.