Chinese solar cell and module manufacturer Jinko Solar has announced that its majority-owned subsidiary, Jiangxi Jinko, has entered into an agreement for the sale of its complete equity interest in Xinjiang Jinko for a consideration of RMB 4.3 billion ($622 million).

The equity transfer agreement is with Ziyang Major Industry Equity Investment Fund, backed by authorities in the southwestern province of Sichuan, and Dong Shihong, chairman of Suzhou Shijing Environmental Technology.

Jinko Solar holds approximately 58.62% equity interest in Jiangxi Jinko.

Jiangxi Jinko is the principal operating arm of Jinko Solar, primarily dealing with solar manufacturing and exports

Upon the completion of this transaction, Jiangxi Jinko will divest its entire equity interest in Xinjiang Jinko, effectively ending its ownership of the subsidiary.

The agreement, which has been negotiated on fair and customary commercial terms, is expected to reduce operational costs, enhance production efficiency, and optimize its facility mix.

To finalize the disposal, customary closing conditions need to be met, including obtaining the necessary antitrust regulatory approval and the payment of the agreed consideration.

JinkoSolar has 14 production facilities globally and 24 overseas subsidiaries.

Recently, Jinko Solar’s majority-owned subsidiary, Jiangxi Jinko Solar, proposed plans for production lines with an annual capacity of 56 GW to manufacture monocrystalline silicon pull rods, silicon wafers, high-efficiency solar cells, and modules.

The cell and module manufacturer has entered into an investment framework agreement with the Transformation Comprehensive Reform Demonstration Zone of Shanxi Province in China.

For the first quarter of the financial year 2023, Jinko Solar‘s net income surged 155% year-on-year to RMB 836.4 million ($121.8 million), primarily on higher module shipments.

The company’s module shipments for the January-March quarter increased 62.3% to over 13 GW compared to about 8 GW YoY.

Jinko Solar emerged as the leading module supplier in Mercom’s India Solar Market Leaderboard 2023.