JinkoSolar’s Strategic Divestment: A Calculated Move or Act of Desperation?

Chinese solar module manufacturer JinkoSolar is pursuing a significant capital-raising initiative amid a challenging industry environment. The company plans to sell a substantial stake in its prized subsidiary, Jinko Solar Co., Ltd., to institutional investors. This move aims to bolster its liquidity position during a period of intense price competition and global trade tensions.

The core of this strategy involves the divestment of up to 300.2 million A-shares in its main operating subsidiary. Should the transaction proceed, the parent company’s ownership stake would decrease from the current 58.59% to approximately 55.59%. This would leave JinkoSolar Holding Co., Ltd. with a controlling interest, though a slimmer one. Management has stated that the primary objective is to secure fresh capital for business development... Read more...