Solar Giant Jinko Falls as Plant Spending Outweighs Profit Surge
- Unit will raise as much as 9.7 billion yuan to fund facility
- Need for investments in new facilities has weighed on sector
A solar project by EDF and Jinko Power Technology Co. Ltd., in Abu Dhabi, United Arab Emirates.
Photographer: Christopher Pike/BloombergThis article is for subscribers only.
Jinko Solar Co., one of the world’s largest panel producers, fell as much as 12% after outlining plans to raise 9.7 billion yuan ($1.3 billion) for a manufacturing facility, underlining the sector’s ongoing need for major investments in new plants.
A proposed share placement by the firm’s Jiangxi Jinko unit equates to about 8% of the parent company’s market capitalization, according to BOCI Research Ltd. analyst Tony Fei. Proceeds will be used on activities including the construction of a facility in Shanxi, Jinko said in a statement.