JinkoSolar Holding (JKS, Financials) saw its stock price decline 10.75% to $21.01 as of 3:15 p.m. GMT-5 on Friday, following the release of preliminary unaudited financial results for its subsidiary, Jiangxi Jinko.
Reflecting a year-over-year decrease of 98.39% to 98.92%, the business said that Jiangxi Jinko's net income attributable to shareholders is projected to range between RMB 80 million to RMB 120 million ($11.56 million to $17.33 million). Eliminating exceptional profits and losses, Jiangxi Jinko forecasts a net loss of RMB 750 million to RMB 1.05 billion ($108.45 million to $151.62 million), a drop of 110.86% to 115.21% from the year before.
The declining stock price reflects market responses to these financial results, which underline a significant loss in profits for Jiangxi Jinko, the main affiliate of JinkoSolar.
Variations in accounting rules and the extent of consolidation explain why Jiangxi Jinko's financial results differ from JinkoSolar's consolidated performance. Although JinkoSolar's consolidated financials follow U.S. GAAP, including extra subsidiary data, Jiangxi Jinko's results are calculated under PRC GAAP.
Having a 58.59% ownership holding in Jiangxi Jinko, JinkoSolar has recommended investors to take them into account when evaluating the preliminary financial performance of the subsidiary.
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