JinkoSolar called 'worthless' in short-seller report

Mar. 04, 2020 11:35 AM ETJinkoSolar Holding Co., Ltd. (JKS)JKSBy: Carl Surran, SA News Editor29 Comments
  • JinkoSolar (JKS -2.9%) tumbles following a negative report from Bonitas Research that alleges the company "exists for the sole purpose of developing PRC assets with JKS' cash that were disposed to Chairman Li at a significant discount to market."
  • JinkoSolar has been "fattened up with five separate equity issuances and US$2 billion -plus in net debt only to be stripped of value by insiders. This is why JKS, despite its purported profitability, [has] failed to generate free cash flow or pay shareholders cash dividends," the report says.
  • "Evidence shows that Chairman Li privatized JKS' most valuable assets for himself, leaving JKS shareholders saddled with debts and construction cost liabilities," according to the report.
  • Chinese filings also reveal Li's brother and Jinko co-counder Li Xianhua secretly benefited from controlling a significant supplier within the company's supply chain, according to the report.

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