Chinese solar PV manufacturer Jinko Solar and Chinese inverter provider Sungrow have successively announced recent plans to issue GDRs and go public in Germany, which has attracted widespread attention.
On the evening of October 20, Jinko Solar announced that the company intended to issue Global Depositary Receipts (GDRs) and list them on the Frankfurt Stock Exchange in Germany.
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GDR is a kind of financial derivative that circulates in the international market, which allows companies to broaden their financing channels by issuing depositary receipts in the international capital market, which is quite attractive to investors worldwide.
According to the announcement, the total amount of funds raised by Jinko Solar’s GDR issuance will not exceed RMB4.5 billion (US$632 million) or its equivalent in foreign currency. The funds will be mainly used for the construction of a 1GW annual nameplate capacity high-efficiency module assembly plant in the US and the 14GW vertically integrated production base project (Phase II) in Shanxi province, China. The issue price of GDR will not be less than 10% of the average closing price of A shares in the 20 trading days prior to the pricing reference date as stipulated.
Industry insiders believe that the GDR issuance, which is an overseas offering, is conducive to the introduction of international investors by industry leaders when the development of the industry enters a tough period. It will help reserve sufficient overseas funds for Jinko Solar’s global layout to better cope with industry competition and overseas market challenges.
| No. | Project | Total Investment (RMB – thousands) | Planned Allocation of Raised Funds (RMB – thousands) |
| 1 | 1GW US High-Efficiency Module Project | 49,926.45 | 49,926.45 |
| 2 | 14GW Integrated Production Base Construction Project (Phase II), Shanxi | 464,125.40 | 274,073.55 |
| 2-1 | 14GW High-Efficiency Module Integrated Production Line Project (Phase II), Shanxi | 94,543.08 | 55,829.22 |
| 2-2 | 14GW Wafer Slicing and High-Efficiency Cell Integrated Production Line Project (Phase II), Shanxi | 246,529.85 | 145,579.86 |
| 2-3 | 14GW Mono Pulling and Squaring Integrated Production Line Project (Phase II), Shanxi | 123,052.47 | 72,664.47 |
| 3 | Supplement Working Capital or Repay Bank Loans | 126,000.00 | 126,000.00 |
| Total | 640,051.85 | 450,000.00 | |
It is worth noting that just last week, another Chinese PV company, Sungrow, also disclosed its plan to issue GDR and go public in Germany.
Sungrow to raise up to US$685 million by listing in Germany
On October 15, Sungrow announced its plan to issue GDR overseas and list on the Frankfurt Stock Exchange in Germany.
According to the plan, Sungrow intends to raise no more than RMB4.88 billion (US$685 million), with the raised funds mainly allocated to four main areas: storage equipment manufacturing, inverter and storage product expansion overseas, digital projects and research and development (R&D) centre construction.
| No. | Project | Investment Scale (RMB – in thousands) | Planned Allocation of Raised Funds (RMB – in thousands) |
| 1 | Annual Production of 20GWh Advanced Storage Equipment Manufacturing Project | 199,150.00 | 199,150.00 |
| 2 | Overseas Inverter Equipment and Storage Product Expansion Project | 192,700.00 | 175,978.43 |
| 3 | Digitalization Enhancement Project | 64,544.26 | 63,026.40 |
| 4 | Nanjing R&D Center Construction Project | 100,000.00 | 49,630.66 |
| Total | 556,394.26 | 487,785.49 | |
Among them, nearly RMB2 billion is planned to be used for the construction of an advanced storage equipment manufacturing project with an annual output of 20GWh, RMB1.76 billion for overseas inverters equipment and storage product expansion project, RMB630 million for digitalization enhancement project, and RMB496 million for the construction of its Nanjing R&D centre.
Sungrow stated that through the issuance and listing of GDR, the company would be able to attract more international investors and further enhance its international visibility and influence.
According to the financial report previously disclosed by Sungrow, in H1 of 2024, the company achieved a revenue of RMB31.02 billion, an increase of 8.38% compared with the same period last year. The net profit attributable to the parent company reached RMB4.96 billion, a year-on-year increase of 13.89%.
