Jinko Power Technology (601778.SH) plans to transfer 100% equity of Hengfeng Guangsan, with a potential capital inflow of approximately 1.225 billion yuan to advance its light asset operation strategy.

Jinko Power Technology (601778.SH) announced that in order to continue to promote the "rolling development" light asset operation strategy and improve capital utilization efficiency, its wholly-owned subsidiary Jinko Power Co., Ltd. (referred to as "Jinko Power") intends to transfer 100% equity of Hengfeng County Guan San Power Co., Ltd. (referred to as "Hengfeng Guan San") held by it to Changjiang Smart Distributed Energy Co., Ltd. (referred to as "Changjiang Smart") for a transfer price of RMB 368 million. The transaction involves a photovoltaic power station with an installed capacity of approximately 300MW and part of the investment projects funded by the non-public offering of shares completed by the company in 2022. It is reported that through this transaction, it is beneficial for the company to lock in project revenue in advance, reduce the risk of fluctuation in electricity prices and revenue under marketized transactions; quickly return funds, optimize asset structure, and reduce financial risks. The returned funds will continue to be invested in the company's high-quality reserve projects, which will help further optimize the allocation of resources and maximize the overall economic benefits of the company, and safeguard the interests of the company and all shareholders. This transaction is a debt-bearing acquisition. The target company and project company owe the company a total of RMB 857 million (including RMB 727 million of funds raised). As of the reference date of this transaction, the project company has repaid RMB 600 million of the debt through bank financing, and the remaining RMB 257 million of debt will be paid in stages after the completion of the audit on the delivery date and transition period of this transaction. Therefore, considering the equity transfer payment of RMB 368 million, the company can ultimately return funds of approximately RMB 1.225 billion. Preliminary calculations estimate that the profit from this transaction is expected to account for 50%-70% of the company's net profit audited in the past year, with the specific data subject to the annual audit results.