February 11, 2010 / 12:49 AM / 10 years ago

Chinese solar company JinkoSolar shelves IPO

NEW YORK (Reuters) - China-based JinkoSolar Holding Co Ltd shelved its initial public offering on Wednesday due to poor market conditions, according to an underwriter.

The company makes silicon wafers, solar cells and solar modules. It had hoped to sell 10.6 million American Depositary Shares for $6 to $8 each.

Solar companies have struggled in the past year as a tight credit dried up financing for new projects and a global glut of supplies pressured prices and margins.

Last month another China-based solar manufacturer, Daqo New Energy Corp, which manufactures polysilicon for panel makers, also shelved its IPO after cutting the price range in an attempt to lure investors.

Investors are looking for signs that the industry will recover its sharp growth even as proposed subsidy cuts in Germany, the world’s largest solar market, have cast a pall on prices and demand.

JinkoSolar posted revenue of 880 million yuan ($128.9 million) in the nine months ended September 30, down 42.8 percent from the same period a year ago. It posted net income of 1.72 million yuan, compared with 179.2 million yuan a year ago.

JinkoSolar posted a 36.5 million yuan loss on the fair value of derivatives in the nine months ended September 30, compared with a 204,000 yuan gain in the year-ago period.

Underwriters were led by Goldman Sachs in Asia and Credit Suisse.

Reporting by Clare Baldwin in New York and Laura Isensee in Los Angeles, editing by Leslie Gevirtz

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