Financial Services Association, April 26 (Reporter Liu Mengran) Regarding the fire accident at the Shanxi Jingke Energy plant in Shanxi, Jinko Energy (688223.SH) gave an explanation of the situation today, and preliminary estimates are that it will have a certain impact on the 2024 annual results. (Financial Services Association previously reported: An open fire broke out at Jinko Energy's Shanxi plant, sources say there were no casualties)

According to the announcement, a fire broke out on the roof of the Phase 1 Sliced Battery Workshop of Shanxi Jingke Energy No. 2 Intelligent Manufacturing Co., Ltd. (hereinafter referred to as “Shanxi Jingke”), a wholly-owned subsidiary, causing a fire accident. After the accident occurred, the company immediately initiated an emergency plan, quickly took measures to evacuate personnel, and fully cooperated with the local fire department to carry out on-site fire fighting and rescue. Under the rescue of local fire and emergency departments, the related fires have been brought under control and put out.

Regarding the specific damage situation, the company stated that the specific loss situation is being verified and assessed. There were no casualties in this accident, and the plant, equipment, and inventory at the scene of the accident were damaged to a certain extent. The company said that initial expectations will have some impact on the 2024 full-year results.

Regarding the impact, the company indicated that the damaged assets have already been covered by property insurance and have reported the case to the insured insurance company, and that the relevant insurance damage claims are being carried out in an orderly manner. At the same time, the commissioning of the first phase of the Shanxi base and subsequent climbing progress will be affected to a certain extent due to this accident. The company is coordinating arrangements, adjusting production processes and order allocation, and doing its best to reduce or eliminate the impact on customer order delivery.

Shanxi Jingke is an important expansion project of the company. The first phase of the project was put into operation for the first time on March 26 this year. According to the company's previous statement, this is a support for improving the competitiveness of Jinko Energy in the face of overcapacity challenges. “Apart from the advantages of integration and technological leadership, the most important thing is digitalization.”

The project includes an integrated production capacity of 56GW monocrystalline rods, 56GW silicon wafers, 56GW high-efficiency batteries and 56GW modules, with a total investment of about 56 billion yuan. In the initial plan, with the expansion of production and process upgrades, the company's N-type chain is expected to see a sharp rise in volume and price.

With N-type TopCon's first-mover advantage, JinkoEnergy achieved net profit of 7.440 billion yuan in 2023 belonging to shareholders of the parent company, an increase of 153.20% over the previous year. In terms of shipments, the company's component shipments increased 77.1% year-on-year to 78.5GW last year, winning the global module sales championship for the fifth time. Among them, the company shipped 48.41 GW of N-type modules, an increase of 352% over the previous year, accounting for nearly 40% of the industry.

According to JinkoEnergy's previous plan, in 2024, the company will “strive to achieve an annual shipment target of 100-110GW, with N-type shipments accounting for nearly 90%”.