Jingke Energy Holding Co., Ltd
Description of performance in the fourth quarter of 2021 and 2021
Shangrao, China, on March 23, 2022, Jingke Energy Holdings Co., Ltd. (hereinafter referred to as "Jingke Energy Holdings" or "the company") (NYSE Code: JKS), a global innovative photovoltaic enterprise, announced today its unaudited fourth quarter and full year financial statements as of December 31, 2021.
1、 Summary of business in the fourth quarter and the whole year of 2021
Despite the challenge of industrial chain fluctuations in the fourth quarter, we still achieved significant growth in component shipments and revenue month on month.
In the fourth quarter, the proportion of shipments in the Chinese market increased to about 34%. While continuing to cultivate large projects, the company actively deployed in the distribution field.
In the fourth quarter, the mass production efficiency of 900MW n-topcon battery in Haining base reached 24.5%, and the yield was close to perc.
In the fourth quarter, we launched a new generation of n-type ultra efficient component tiger Neo, which is widely welcomed by the global market with better power generation performance and presents a considerable premium.
In the first quarter of 2022, the main operating subsidiary Jingke Energy Co., Ltd. (hereinafter referred to as
"Jiangxi Jingke") completed the A-share IPO, and the help of capital will provide momentum for the development of the company's technology and business. With our global marketing network and resource advantages accumulated over the years, our leading position in the global photovoltaic industry will be further strengthened.
2、 Financial summary for the fourth quarter of 2021
In the fourth quarter, the total shipment reached 9693 MW (including 9024 MW Cecep Solar Energy Co.Ltd(000591) components, 669 MW battery chips and silicon chips), with a month on month increase of 94.1% and a year-on-year increase of 67.9%.
Revenue in the fourth quarter reached 16.39 billion yuan ($2.57 billion), an increase of 91.2% month on month and 73.9% year-on-year. The month on month growth was mainly due to the increase of Cecep Solar Energy Co.Ltd(000591) component shipments.
In the fourth quarter, the gross profit reached 2.64 billion yuan (US $410 million), an increase month on month
104.0%, a year-on-year increase of 75.5%.
The gross profit margin is 16.1%, 15.1% in the third quarter of 2021 and 15.1% in the fourth quarter of 2020
16.0%。
The net profit was 240 million yuan ($37.6 million), compared with 190 million yuan in the third quarter of 2021 and 380 million yuan in the fourth quarter of 2020. Under non US GAAP, the net profit attributable to the company's common shareholders was RMB 220 million (US $34.3 million), a month on month increase of 12.8 times and a year-on-year increase of 5.5 times.
The basic and diluted earnings per share were 1.26 yuan (US $0.20) and 1.04 yuan (US $0.16) respectively, and the basic and diluted earnings per ads were 5.02 yuan respectively
(US $0.79) and RMB 4.16 (US $0.65).
Under non US GAAP, the basic and diluted earnings per share are 1.15 yuan (US $0.18) and 1.06 yuan (US $0.17) respectively, and the basic and diluted earnings per ads are 4.58 yuan (US $0.72) and 4.25 yuan (US $0.67) respectively. 3、 Annual financial summary of 2021
Annual shipments reached 25242 MW (component shipments reached 22233 MW), and component shipments increased by 18.4% year-on-year.
The total revenue reached 40.83 billion yuan (US $6.41 billion), a year-on-year increase of 16.2%
The gross profit reached 6.66 billion yuan (US $1.04 billion), with a year-on-year increase of 7.9% (excluding the impact of anti subsidy and anti-dumping tax offsetting costs 1, the gross profit was 6.66 billion yuan, with a year-on-year increase of 10.7%).
The gross profit margin is 16.3% and 17.6% in 2020 (excluding the impact of anti subsidy tax and anti-dumping tax offset cost, the gross profit margin is 16.3% and 17.1% in 2020).
The operating profit was RMB 1.1 billion (US $170 million), a year-on-year decrease of 38.2% (excluding the impact of anti subsidy and anti-dumping tax offsetting costs, the operating profit was RMB 1.1 billion, a year-on-year decrease of 32.2%).
The net profit was 720 million yuan ($110 million), a year-on-year increase of 2.1 times.
Under non US GAAP, the net profit attributable to the company's common shareholders was 560 million yuan ($87.6 million), a year-on-year decrease of 41.7%.
4、 Management discussion and analysis
Mr. Li Xiande, chairman and CEO of the US anti-dumping department, was very happy to pay RMB 2.01 million for the year of 2021 with the excellent anti-dumping review of the company's anti-dumping performance in 2020 (US $25.1 million).
With good supply chain management and competitive advantages of global layout, we can quickly meet the challenges of supply chain and logistics. Our integrated self production capacity continues to improve, and we further strengthen supply chain management to reduce costs. At the same time, our global layout advantage is further amplified in market fluctuations. Shipments, revenue and profitability increased significantly month on month in the fourth quarter. Compared with the third quarter of 2021, gross profit doubled, operating profit more than tripled, and non GAAP net profit increased by about 13 times.
In the first quarter of 2022, our main operating subsidiary Jiangxi Jingke was successfully listed on the science and Innovation Board of Shanghai Stock Exchange, with a financing amount of 10 billion yuan. This is a historic milestone for the company and will continue to create greater impetus for our technological progress and business expansion.
In 2021, China's annual new installed capacity reached nearly 55gw, of which distributed contributed more than half of the new installed capacity with higher economy. It is expected that it will still be the driving force of the new installed capacity this year.
Following the opportunity of rapid development of distributed, we have increased our brand influence in the field of distributed.
The industry is accelerating the transformation from p-type to n-type, and customers' demand for more efficient products is growing. We have launched a new generation of super efficient n-type product tiger Neo, which has been welcomed by the global market with better power generation performance. We will continue to make n-type components the leader in the global market through the deep cultivation of overseas markets and the improvement of China's layout. Our 16GW n-type TOPCON battery capacity was officially put into operation in the first quarter and is now climbing smoothly. Our integrated production capacity structure is constantly improving, which contributes to the continuous decline of integration costs.
Our Vietnam 7gw silicon wafer factory was officially put into operation in the first quarter, and will form an integrated production and manufacturing capacity of nearly 7gw monocrystalline silicon wafer battery module overseas, further consolidating the advantages of the global supply chain. Facing the shortage of materials and links, we cooperate with upstream and downstream to carry out strategic cooperation of complementary resources, and are committed to building a cluster of industry ecosystem. The ability of vertical integration is a necessary ability for leading enterprises to compete. By continuously establishing the advantages of industrial chain integration, we hope to continuously enhance the competitiveness of efficient products and bring greater value to end customers with reliable component products and high-quality services. "
5、 Financial report for the fourth quarter of 2021
Total revenue
The total revenue in the fourth quarter of 2021 was RMB 16.39 billion (US $2.57 billion), an increase of 91.2% compared with RMB 8.57 billion in the third quarter of 2021 and 73.9% compared with RMB 9.42 billion in the fourth quarter of 2020. The month on month and year-on-year growth was mainly due to the increase in Cecep Solar Energy Co.Ltd(000591) component shipments
Long term, especially the growth of component shipments in the Chinese market driven by China's favorable renewable energy policies.
Gross profit and gross profit margin
The gross profit in the fourth quarter of 2021 was RMB 2.64 billion (US $410 million), compared with RMB 1.3 billion in the third quarter of 2021 and RMB 1.51 billion in the fourth quarter of 2020 (excluding the impact of anti subsidy and anti-dumping tax offsetting costs, the gross profit in the fourth quarter of 2020 was RMB 1.35 billion).
The gross profit margin in the fourth quarter of 2021 was 16.1%, compared with 15.1% in the third quarter of 2021 and 16.0% in the fourth quarter of 2020 (excluding the impact of anti subsidy tax and anti-dumping tax offset cost, the gross profit margin in the fourth quarter of 2020 was 14.3%). The month on month and year-on-year increase in gross profit margin is mainly due to (I) the continuous decline in production costs caused by the company's industry-leading integrated cost structure and (II) Cecep Solar Energy Co.Ltd(000591) component average sales price.
Operating profit and operating profit margin
The operating profit in the fourth quarter of 2021 was 490 million yuan ($76.2 million), compared with
The operating profit in the third quarter of 2021 was 110 million yuan, and the operating profit in the fourth quarter of 2020 was 71.6 million yuan (excluding the impact of anti subsidy and anti-dumping tax offsetting costs, the operating loss in the fourth quarter of 2020 was 88.4 million yuan).
The operating profit margin in the fourth quarter of 2021 was 3.0%, compared with 1.3% in the third quarter of 2021, and 0.8% in the fourth quarter of 2020 (excluding the impact of anti subsidy and anti-dumping tax offsetting costs, the operating loss rate in the fourth quarter of 2020 was 0.9%).
Total operating expenses in the fourth quarter of 2021 were RMB 2.16 billion (US $338.7 million), compared with
RMB 1.18 billion in the third quarter of 2021 increased by 82.2% compared with that in the fourth quarter of 2020
1.44 billion yuan, an increase of 50.4%. The month on month and year-on-year growth was mainly due to the increase of Cecep Solar Energy Co.Ltd(000591) component freight in the fourth quarter of 2021.
Total operating expenses accounted for 13.2% of total revenue in the fourth quarter of 2021, compared with 13.8% in the third quarter of 2021 and 15.2% in the fourth quarter of 2020.
Net interest expense
Net interest expense for the fourth quarter of 2021 was 140 million yuan ($22.7 million), compared with
Compared with RMB 165.6 million in the third quarter of 2021, it decreased by 12.8%, and increased by 25.4% compared with RMB 115.2 million in the fourth quarter of 2020. The month on month decline was mainly due to the decline in the discount cost of bank acceptance bills. The year-on-year growth was mainly due to the growth of the company's interest bearing debt.
Subsidy income
The subsidy income in the fourth quarter of 2021 was 109.6 million yuan (US $17.2 million), compared with 63.5 million yuan in the third quarter of 2021 and 109.7 million yuan in the fourth quarter of 2020. The month on month growth was mainly due to the increase of non recurring non refundable unconditional cash subsidies issued by local governments in China.
Exchange losses and gains and losses from changes in fair value of foreign exchange derivatives
The company recognized a net exchange loss of RMB 10.5 million (US $1.6 million) in the fourth quarter of 2021, including changes in the fair value of foreign exchange derivatives. Compared with the net exchange loss of RMB 6.2 million in the third quarter of 2021, the net exchange loss in the fourth quarter of 2020 was RMB 47.9 million. The company confirmed that the net exchange loss was mainly due to the depreciation of the US dollar against the RMB in the fourth quarter of 2021.
Gains and losses from changes in fair value of convertible bonds and call options
In May 2019, the company issued US $85 million of 4.5% convertible bonds (the "notes") maturing in 2024, and chose to use the binary tree option pricing model to determine the fair value. The company recognized a loss of 9.5 million yuan (US $1.5 million) from changes in fair value in the fourth quarter of 2021, compared with a gain of 239 million yuan in the third quarter of 2021 and a loss of 685.4 million yuan in the fourth quarter of 2020. The change in the fair value of convertible bonds is mainly due to the rise of the company's share price in the fourth quarter of 2021. While issuing convertible senior notes in May 2019, the company and Credit Suisse
A subsidiary of securities (USA) LLC signed a call option contract. The company listed the call option as an independent derivative asset in the consolidated balance sheet and valued it at market value during the reporting period. The fair value of call options did not change in the fourth quarter of 2021. Compared with the third quarter of 2021, the loss was 38.2 million yuan, and the income in the fourth quarter of 2020 was 257.8 million yuan. The main reason for the change is that the company opened in 2021
