JinkoSolar Conference Call Highlights

JinkoSolar

reported its second quarter earnings. Shares of the company are fairly neutral. Below are some key highlights: • Total revenues increased 20.8% sequentially, and 37.8% year-over-year with total solar product shipment, increasing 13.5% sequentially, and 34.8% year-over-year. • Our revenue streams continue to diversify with continued growth of our downstream business. • We secured US$225 million in private equity financing during the quarter for Jinko power, our subsidiary that develops and operates our downstream solar power project business. • I believe that Chinese market will remain the largest market this year as we look to maintain our leading position there. • We once again reached our shipments and profitability target for the quarter, helping to once again reinforce our confidence to meet our full year guidance. • We expect to see our five year period of rapid growth beginning this year, with 91% of PV module demand coming from silicon existing modules. Financials and Results: • Gross margin was 22.6% in the second quarter of 2014 compared with 24% in the third quarter of 2014 and 17.7% in the second quarter of last year. • Total operating expenses in the second quarter of 2014 were US$48.1 million, an increase of 6.8% sequentially and an increase of 91.7% year-over-year. • Net interest expense in the second quarter of 2014 was US$11.5 million, an increase of 17.3% sequentially and an increase of 22.3% year-over-year. International: • Solar prices for China and to the USA have increase more than 9% in the very short period, while export from China to Europe fell over 62% last year. • Regarding Europe, while we expect over 7 gigawatt for the whole year 2014, we are facing anti-dumping and countervailing duties challenges. • Regarding marketing, we have been attending conferences and exhibitions around the world, including in the USA, in Europe, particularly in the UK, Asia-Pacific and emerging markets