Capital increase not exceeding 3 billion yuan: Jinko Solar's subsidiary seeks strategic investors to repay debt

Another major photovoltaic company plans to raise funds through capital increase and share expansion via its subsidiary. Leading solar module manufacturer Jinko Solar recently announced that its controlling subsidiary, Jinko Solar (Haining) Co., Ltd. (hereinafter referred to as “Haining Jinko”), intends to introduce strategic investors to implement a capital increase and share expansion, with a total cash injection of no more than 3 billion yuan. Regarding the use of the funds, Jinko Solar stated that they will mainly be used to repay financial liabilities or operational liabilities of Haining Jinko.

Behind the subsidiary’s plan to attract strategic investors, as of the end of the first three quarters of 2025, Haining Jinko and Jinko Solar’s asset-liability ratios were 58.73% and 74.48%, respectively.

The announcement shows that Haining Jinko plans to implement a capital increase and share expansion and introduce strategic investors such as Xingyin Financial Asset Investment Co., Ltd. and China Orient Asset Management Co., Ltd. The total cash capital increase will not exceed 3 billion yuan, and the combined equity stake after the increase is expected to be no more than 24.67%.

Jinko Solar told Beijing Business Daily that Haining Jinko mainly focuses on high-efficiency N-type TOPCon capacity, with industry-leading technology and cost advantages. External investors are optimistic about Jinko Solar and Haining Jinko; they are purely financial investors and will not participate in company management. Introducing strategic investors will further strengthen Jinko Solar’s capital strength, optimize capital structure and resource allocation, improve asset operation efficiency, and consolidate its leading position in N-type TOPCon technology.

Yuan Shuai, Deputy Secretary-General of the Zhongguancun Internet of Things Industry Alliance, said that the core consideration for listed companies’ subsidiaries to introduce strategic investors for capital increase and share expansion is often based on dual logic of “financial optimization” and “strategic empowerment.” The most direct motivation may be to improve the subsidiary’s capital structure and debt-paying ability, effectively reduce the asset-liability ratio, decrease financial expenses, optimize cash flow, and enhance risk resistance.

Financial data shows that as of September 30, 2025, Haining Jinko’s total assets were approximately 20.537 billion yuan, with total liabilities of about 12.061 billion yuan, resulting in an asset-liability ratio of approximately 58.73%. In 2024 and the first three quarters of 2025, Haining Jinko’s revenue was approximately 21.395 billion yuan and 16.761 billion yuan, respectively, with net profits of about 1.044 billion yuan and 28.8263 million yuan.

Looking at the listed company’s performance, in the first three quarters of 2025, Jinko Solar’s revenue was about 47.986 billion yuan, a year-on-year decrease of 33.14%; net attributable profit was approximately -3.92 billion yuan, turning from profit to loss year-on-year. Additionally, according to the annual performance forecast, preliminary calculations by Jinko Solar’s finance department estimate that the full-year net profit attributable to shareholders will be negative, indicating a loss for 2025.

In response, Jinko Solar told Beijing Business Daily that in 2025, the photovoltaic industry is in a deep adjustment period characterized by capacity clearance and fierce price competition. Coupled with rising raw material prices and changes in domestic and international policies, the industry’s overall performance is under pressure. In the future, the company plans to leverage high-efficiency modules, including the latest “Feihu 3,” to bring good premiums, and with the high-efficiency capacity ramp-up in 2026, along with rapid growth and profit contribution from energy storage, performance is expected to improve.

In the context of overcapacity in the photovoltaic industry, besides Jinko Solar, leading A-share photovoltaic module manufacturers Longi Green Energy, Aiko Solar, and Trina Solar have also disclosed preliminary earnings loss warnings, with Longi Green Energy and Aiko Solar achieving significant reductions in losses.

Additionally, as of the end of the first three quarters of 2025, Jinko Solar’s asset-liability ratio reached 74.48%.

Regarding plans to further reduce the asset-liability ratio, Jinko Solar stated that the company will continue to focus on its main business, leveraging product, technology, and market advantages to steadily improve its asset-liability situation. About 10 billion yuan of its interest-bearing debt is convertible bonds, which could significantly improve the company’s financial structure if effectively converted.

It is worth noting that since the new photovoltaic export tax rebate policy was announced, there has been a rush among module manufacturers to export, and some industry insiders claim that many large module companies have “breached contracts.” In response, Jinko Solar said that their signed contracts include a pricing adjustment mechanism related to the tax rebate policy, and the impact of the policy on the company is limited.

Beijing Business Daily reporters Ma Huanchuan and Li Jiaxue