On April 28, clean energy service provider Jinko Power (601778) released its annual report for 2020. During the reporting period, its operating revenue reached ￥3.588 billion, down 32.88% year on year; the net profit attributable to shareholders of the listed company was ￥476 million, down 34.20% year on year. Affected by the outbreak of COVID-19 early last year, Jinko Power’s photovoltaic power plant EPC orders decreased, construction progress and grid connection were delayed, and EPC revenue declined significantly year on year, which affected its operating revenue and net profit in the reporting period.

By the end of 2020, Jinko Power held 337 photovoltaic power plants in over 20 provinces in China, with a total installed capacity of about 3.08GW. In 2020, its total power generation was about 3.4 billion KWH. In addition, the scale of photovoltaic power plants under construction/planning in China was about 1.85GW, and the scale of photovoltaic power plants under construction/planning overseas was about 2.90GW (including joint-stock projects).

The short-term decline in EPC revenue brought some pressure to Jinko Power but did not change the pace of its growth. It is reported that the company provides customers with photovoltaic power plant EPC, equipment procurement and supply as well as photovoltaic power plant total solutions and other services through participation in EPC project bidding and development-driven EPC. By the end of 2020, its accumulative EPC contract size was about 2.61GW. Its general contracting qualification for power engineering construction was successfully upgraded to the secondary qualification, and the scale of projects it could undertake was further increased.

In the core business line of power plant development, Jinko Power continued its efforts. Major breakthroughs were made in development scale last year compared with 2019. In 2020, the company developed about 2.25GW of domestic projects, up 43% year on year, and about 2.50GW of overseas projects, with rich overseas project resources in reserve. As of the release date for the annual report, Jinko Power signed GW-level base strategic cooperation agreements in Xinjiang, Jiangxi, Heilongjiang and other provinces with a total scale of 8.5GW, laying a solid foundation for the company to expand operation scale and international cooperation.

As photovoltaic power generation has gradually entered the era of purchasing power parity, Jinko Power, based on in-depth research on industrial policies, grasps market changes, explores new growth models, and keeps optimizing the structure and income quality of self-sustaining power plants by promoting the development and construction of new purchasing power parity projects and the transfer of stock subsidized power plants in parallel. According to the company, its 3 billion yuan of convertible bonds are mainly used for the investment and construction of a purchasing power parity photovoltaic power plant project.After the completion of the project, the company expects to add 584.3MW of installed capacity to its photovoltaic power plants.This move will further consolidate the company's leading position in the photovoltaic power plant operation market and improve the company's profitability.