Jinko Admits Misappropriation of Fundraising!

8, Jingke Technologies announced that the company received a regulatory letter from the Shanghai Stock Exchange on July 5, requesting the company and sponsors to conduct self-examination on the use of the raised funds. Explain whether the three funds totaling 110 million yuan, which were originally used to repay bank loans but were diverted to pay deposits, bank acceptance bills due for repayment and repayment to supply chain financing companies, violate the relevant provisions on the management and use of raised funds.

Jingke Technologies responded to the use of the company's raised funds.

Jinko Technology was listed on the Shanghai Stock Exchange on May 6, 2020, and raised 2.598 billion yuan in its initial public offering, with a balance of 2.417 billion yuan after deducting non-issuance fees, which was used for the following projects:

In response to the query about the misappropriation of funds in the regulatory letter, Jinko Technology said that with the increase of business scale. In addition to the common bank loans, the Company also used diversified borrowing channels including financial lease loans, supply chain financing and some local government cooperative loans in the course of operation, mainly due to the following reasons: on the one hand, before listing, the Company's financing channels were limited, and with the growth of the scale of operation, the Company's financing channels were limited. With the increasing demand for funds and the large amount of national subsidies for new energy power generation that have not yet been issued, the scale of new energy subsidies receivable by the company continues to grow , and the pressure of funds and cash flow is greater; On the other hand, the company's asset-liability ratio is relatively high, at that time, financial institutions have not yet reached a consensus on the development prospects of the photovoltaic industry , it is difficult to apply for bank loans, and the interest rate of bank financing remains high . As a result, the company can not rely solely on bank loans for financing.

Therefore, the development of diversified financing channels can effectively guarantee the investment and construction of photovoltaic power plants and the smooth development of EPC business of photovoltaic power plants, which is also in line with the usual practice of the industry.

In view of whether the three fund flows are inconsistent with the original intention and purpose of the fund raised in the previous prospectus, Jingke Science and Technology explained in the announcement that:

(1) The company uses the fund raised to repay the exposure of bank notes, additional margin and supply chain financing loans mainly because the company has more types of operating liabilities. The debt repayment pressure caused by factors such as the large amount of new energy power generation subsidies that have not yet been issued is determined according to their actual debt repayment needs, with reasonable background and reasons;

(2) However, the use of relevant funds does not belong to the repayment of bank loans, which is different from the previous information disclosure of the investment of raised funds in "repayment of bank loans", does not strictly comply with the relevant provisions on the management and use of raised funds, and the disclosure of relevant information in the previous period is not accurate enough;

(3) The above three IPO proceeds are ultimately used to pay off the debts formed by the construction of power station projects and serve the main business, which is consistent with the original intention and purpose of the company to set up "repayment of bank loans" as the investment of raised funds, and there is no situation that damages the interests of the company and shareholders.