Jinkosolar's Subsidiary Jiangxi Jinko Inks Equity Transfer And Investment Framework Agreement

JinkoSolar Holding Co Ltd's JKS operating subsidiary Jinko Solar Co., Ltd (Jiangxi Jinko), enters an equity transfer agreement with Ziyang Major Industry Equity Investment Fund Partnership and Mr. Shihong Dong.
Under the agreement, Jiangxi Jinko will sell its 100% equity interest in Xinjiang Jinko Solar Co. for RMB4.3 billion.
Jiangxi Jinko will no longer hold any equity interest in Xinjiang Jinko.
Jiangxi Jinko's operational costs are anticipated to be reduced by the deal, along with production efficiency improvements and facility mix optimization.
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Jiangxi Jinko also signed an investment framework agreement with the Management Committee of Transformation Comprehensive Reform Demonstration Zone of Shanxi Province.
Under the agreement, Jiangxi Jinko plans to construct production lines with a total annual production capacity of 56 GW for each monocrystalline silicon pull rod, silicon wafer, high-efficiency solar cells, and modules, for a total estimated investment of ~RMB56 billion.
JinkoSolar currently owns ~58.62% equity interest in Jiangxi Jinko.
Price Action: JKS shares are trading higher by 1.13% at $46.65 on the last check Wednesday.