Its never boring as a heavyweight of the Chinese solar industry, as JinkoSolar proved today with the sale of its downstream business in China and the signing of a large-scale module supply deal. The two developments show that Jinko sees its future predominantly in the manufacturing side of the industry, rather than the project development side.
The sale of Jinkos downstream business in China is a result of a Share Purchase Agreement for 55% of its subsidiary Wide Wealth Group Holding. The 55% stake is being purchased by Shangrao Kangsheng Technology, which was formed by a buyer consortium led by Xiande Li, who will finance the deal through personal funds and debt financing.
The stake was originally held by Jiangxi JinkoSolar Engineering and included the companys downstream business in China, Jinko Power. The stake is being purchases for a cool US$250 million, and the transaction is expected to be completed within the fourth quarter of 2016.
300 MW of modules for poverty alleviation
To compound the importance of Jinkos manufacturing capabilities in the face of the sale, the company has signed a 300 MW master module supply agreement with Henan Senyuan Electric, which is a local Chinese PV power plant developer. Interestingly, the modules will be used on projects designed at poverty alleviation in poor areas of the Henan province.
We have been leveraging our strong technical skills, reliable high-efficiency products and experienced development team to participate in a number of poverty alleviation projects across China in recent years, including Jiangxi, Anhui, Guizhou, Shanki, Gansu and Shandong provinces, said JinkoSolars Vice President of Global Sales and Marketing Gener Miao. Our collaboration with Senyuan Electric will provide thousands of low-income households with the highest quality PV modules that will ensure a sustainable generation of green energy and income for them and raise their standard of living.