JinkoSolar Announces Proposed Sale of A Shares in Its Subsidiary, Jinko Solar Co., Ltd., through Inquiry Transfer and Placement

Rhea-AI Summary

JinkoSolar (NYSE:JKS), a leading solar module manufacturer, announced plans to sell up to 300,156,075 A shares of its subsidiary Jinko Solar Co., Ltd. through an inquiry transfer and placement on the Shanghai Stock Exchange's Sci-Tech Innovation Board.

The purchase price will be set at no less than 70% of Jiangxi Jinko's average A share trading price over the past 20 trading days before September 12, 2025. Following the transaction, JinkoSolar's equity stake in Jiangxi Jinko will decrease from 58.59% to approximately 55.59%.

The company aims to strengthen its cash position and support ongoing business operations through this share sale, subject to market conditions.

Positive

• Will strengthen company's cash flows and improve cash position
• JinkoSolar maintains majority control with 55.59% stake post-sale
• Enhances company's resilience to risks while preserving capacity for future shareholder returns

Negative

• Reduction in ownership stake from 58.59% to 55.59% in Jiangxi Jinko
• Shares will be sold at potential discount up to 30% from 20-day average trading price

Insights

Corporate Finance Specialist

JinkoSolar's planned 3% subsidiary stake sale aims to improve liquidity while maintaining majority control, signaling potential cash concerns despite positive management spin.

JinkoSolar has announced a potentially significant financial maneuver, planning to sell up to 300.1 million A shares of its principal operating subsidiary, Jiangxi Jinko. This transaction would reduce JinkoSolar's ownership stake from approximately 58.59% to 55.59% - maintaining majority control while raising capital through an inquiry transfer and placement to institutional investors.

The pricing mechanism deserves attention - shares will be sold at no less than 70% of the 20-day average trading price prior to the subscription invitation. This substantial discount suggests a prioritization of successful capital raising over maximizing share value, potentially indicating urgency in their capital needs.

While management frames this as strengthening cash flows and enhancing resilience, this type of secondary offering typically signals underlying cash flow challenges. The CEO's statement that this will "support ongoing business operations" particularly suggests the company may be experiencing operational cash constraints. The solar manufacturing industry continues facing intense pricing pressures, with many manufacturers struggling with thin margins and high capital requirements.

The transaction structure through the Shanghai exchange provides access to Chinese institutional investors while maintaining NYSE compliance requirements. This hybrid capital approach demonstrates how Chinese companies with foreign listings can leverage domestic capital markets strategically. However, investors should note that by diluting ownership in its primary operating subsidiary, JinkoSolar is effectively reducing its claim on future earnings from that entity.

SHANGRAO, China, Sept. 12, 2025 /PRNewswire/ -- JinkoSolar Holding Co., Ltd. ("JinkoSolar" or the "Company") (NYSE: JKS), one of the largest and most innovative solar module manufacturers in the world, today announced that, in order to raise funds for its business operations, the Company intends to sell up to 300,156,075 A shares of Jinko Solar Co., Ltd. ("Jiangxi Jinko"), an indirect, majority-owned principal operating subsidiary of the Company incorporated in the PRC whose A shares are listed on the Shanghai Stock Exchange's Sci-Tech Innovation Board, to certain qualified institutional investors (the "Sale of A Shares"). The Sale of A Shares will be conducted through an inquiry transfer and placement pursuant to the rules of the Shanghai Stock Exchange (the "Inquiry Transfer and Placement"). The purchase price per A share for the Inquiry Transfer and Placement will be no less than 70% of the average trading price of the A shares of Jiangxi Jinko for the 20 consecutive trading days prior to the date of a subscription invitation sent to potential investors (i.e., September 12, 2025, inclusive), in compliance with the rules of the Shanghai Stock Exchange. The completion of the Sale of A Shares is subject to market conditions.

 "We believe that the sale of A Shares will strengthen our cash flows, improve our cash position, support our ongoing business operations, and enhance our resilience to risks. Meanwhile, it allows us to preserve the capacity for future shareholder returns, reinforcing long-term shareholder value." said Mr. Xiande Li, Chairman and Chief Executive Officer of JinkoSolar.

JinkoSolar currently owns approximately 58.59% equity interest in Jiangxi Jinko. Upon the completion of the Sale of A Shares, the Company is expected to own approximately 55.59% equity interest in Jiangxi Jinko.

About JinkoSolar Holding Co., Ltd. 

JinkoSolar (NYSE: JKS) is one of the largest and most innovative solar module manufacturers in the world. JinkoSolar distributes its solar products and sells its solutions and services to a diversified international utility, commercial and residential customer base in China, the United States, Japan, Germany, the United Kingdom, Chile, South Africa, India, Mexico, Brazil, the United Arab Emirates, Italy, Spain, France, Belgium, Netherlands, Poland, Austria, Switzerland, Greece and other countries and regions.

JinkoSolar had over 10 productions facilities globally, over 20 overseas subsidiaries in Japan, South Korea, Vietnam, India, Turkey, Germany, Italy, Switzerland, the United States, Mexico, and other countries, and a global sales network with sales teams in China, the United States, Canada, Brazil, Chile, Mexico, Italy, Germany, Turkey, Spain, Japan, the United Arab Emirates, Netherlands, Vietnam and India, as of June 30, 2025.

To find out more, please see: www.jinkosolar.com 

Safe Harbor Statement

This press release contains forward-looking statements. These statements constitute "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from management in this press release and the Company's operations and business outlook, contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Further information regarding these and other risks is included in JinkoSolar's filings with the U.S. Securities and Exchange Commission, including its annual report on Form 20-F. Except as required by law, the Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

For investor and media inquiries, please contact:

In China: 

Ms. Stella Wang
JinkoSolar Holding Co., Ltd.
Tel: +86 21-5180-8777 ext.7806
Email: ir@jinkosolar.com 

Mr. Rene Vanguestaine
Christensen
Tel: +86 178 1749 0483
Email: rene.vanguestaine@christensencomms.com 

In the U.S.: 

Ms. Linda Bergkamp
Christensen, Scottsdale, Arizona
Tel: +1-480-614-3004
Email: linda.bergkamp@christensencomms.com 

 

View original content:https://www.prnewswire.com/news-releases/jinkosolar-announces-proposed-sale-of-a-shares-in-its-subsidiary-jinko-solar-co-ltd-through-inquiry-transfer-and-placement-302555005.html

SOURCE JinkoSolar Holding Co., Ltd.

FAQ

How many A shares of Jiangxi Jinko is JinkoSolar (NYSE:JKS) planning to sell?

JinkoSolar plans to sell up to 300,156,075 A shares of Jiangxi Jinko through an inquiry transfer and placement.

What will be the minimum price for JinkoSolar's (JKS) A share sale?

The minimum price will be 70% of the average trading price of Jiangxi Jinko's A shares over the 20 trading days prior to September 12, 2025.

How will JinkoSolar's ownership in Jiangxi Jinko change after the share sale?

JinkoSolar's ownership stake in Jiangxi Jinko will decrease from 58.59% to approximately 55.59% after the share sale.

What is the purpose of JinkoSolar's (NYSE:JKS) A share sale?

The sale aims to strengthen cash flows, improve cash position, support ongoing business operations, and enhance resilience to risks while preserving capacity for future shareholder returns.

Where will the Jiangxi Jinko A shares be sold?

The shares will be sold on the Shanghai Stock Exchange's Sci-Tech Innovation Board through an inquiry transfer and placement process.