Jinko Solar responds to the Shanghai Stock Exchange regulatory letter: The first phase of the Ningxia Zhongwei Intelligent Computing Center project is expected to reach an asset-liability ratio of 67.1%, which will not have a significant adverse impact on the financial structure.

JinkoSolar announced that the company responded to the Shanghai Stock Exchange regarding a regulatory work letter concerning the signing of an investment agreement for the Ningxia Zhongwei Computing Power Center project. The company’s Ningxia Zhongwei Intelligent Computing Center project fully draws on the mature experience of industry peers, and its investment schedule is prudent, controllable, and manageable.

Based on a framework agreement, the project has a total investment of approximately 24.5 billion yuan, and will be constructed in three phases. The first phase plans to invest approximately 10 billion yuan, with IT power of 400MW, and reserves space for expansion in phases two and three. Subsequently, the project will be advanced step by step according to order volume, to prevent blind expansion without order support and to ensure that investment aligns with market demand.

To reasonably control funding pressure and investment pace, the company will comprehensively raise funds through methods including direct financing and indirect financing. It will also implement the project steadily by introducing strategic partners for co-investment and phased capital contributions. The company will prudently assess its funding-raising capacity and the project’s advancement pace to ensure the sustained and steady operation of the new energy core business.

The company currently does not hold large-scale photovoltaic power stations in Ningxia. As an important wind and solar new-energy province nationwide, Ningxia has a large installed capacity of new energy and clear advantages in electricity market-based trading prices. At the same time, it also faces certain pressures related to new-energy curtailment and power rationing.

The company has long been deeply involved in the investment, construction, and operation of new energy power plants, and has mature professional capabilities in the development of wind and solar projects, electricity market trading, and optimization of new energy absorption. With the implementation of this computing power center project, it can serve as a stable, large-capacity, high-quality load, providing important support for new energy absorption in the region.

Regarding the impact of the project’s first phase on the company’s total assets and total liabilities, the company has conducted calculations based on a simplified calculation methodology. If the company holds 100%, the estimated asset-liability ratio is expected to reach 67.1%. The increase remains within a controllable and healthy range and will not cause any material adverse impact on the company’s financial structure. If the company holds 51% and obtains control of the project company, the estimated asset-liability ratio is expected to reach 65.2%, with an even more limited impact on the financial structure.