jingke energy (688223.SH) announced the fire in Shanxi base.

on April 28, jingke energy announced that at about 15: 00 p.m. on April 26, a fire occurred on the roof of phase I sliced battery workshop of Shanxi jingke energy no 2 zhizao co., ltd. (hereinafter referred to as Shanxi jingke), a wholly-owned subsidiary of jingke energy.

After the accident, JinkoSolar said that it immediately launched an emergency response plan, quickly took measures to evacuate people, and fully cooperated with the local fire department to implement on-site fire fighting and rescue.

"The fire has been brought under control and extinguished by the local fire emergency and other departments. At present, the specific cause of the fire accident is under investigation and verification." The announcement said.

jingke energy said that the accident did not cause casualties, and the plant, equipment and inventory at the accident site were damaged to a certain extent. the specific loss is being verified and evaluated, and it is initially expected to have a certain impact on the annual performance in 2024.

the first phase of Shanxi base will be put into operation due to the accident and the subsequent climbing progress will be affected to a certain extent. Jingke Energy said that it is making overall arrangements to adjust the production process and order allocation, and try its best to reduce or eliminate the impact on customer order delivery.

in addition, the damaged assets of jingke energy have been insured with property insurance and have been reported to the insurance company. the relevant insurance loss claims are being carried out in an orderly manner.

After the incident on March 26, the video transmitted by various social media can be seen with thick smoke billowing from the scene. "Green Hornet" reported that it was learned from the local emergency management department that the open flame was extinguished at about 17:00 that day. However, at 18:38, the media was concerned that the open fire was rising again and there was a resurgence.

jingke energy Shanxi base originally announced in may last year that the company plans to spend 56 billion yuan to plan and build a large vertical integration base project with an annual output of 56 GW in Shanxi transformation and comprehensive reform demonstration zone. On March 26, a month ago, the first phase of the base project had just been put into operation.

according to the original plan, jingke energy's record of investor relations activities on April 23 disclosed that Shanxi base is expected to be fully produced in the middle of the year after it is put into production. The second phase is planned to be put into production at the end of July this year and is expected to be fully produced by the end of this year.

since the announcement of the Shanxi project, the statements made by Jingke energy executives in various public occasions, as well as the company's financial reports and other information, can be seen that Jingke attaches great importance to the Shanxi base.

In addition, the project is also very important to Shanxi Province. Jingke Energy's "56 GW Vertical Integration Base Project" is the largest single investment industrial project introduced by Shanxi Province in recent years. It is publicized that it will build the world's first, the world's largest and the world's highest conversion efficiency vertical integration "Super Digital Factory" in the photovoltaic industry ".

The construction of Shanxi's large base was previously called by the industry as "recreating a crystal branch".

Qian Jing, vice president of jingke energy, pointed out to reporters such as the interface news at the beginning of the announcement of the above project that the construction of Shanxi base has three considerations. first, the local government of Shanxi can provide a large proportion of green electricity supply, which will greatly promote jingke's completion of RE100. Second, for the sake of operational efficiency, the integrated production capacity is placed in the same base to the greatest extent. Third, shanxi is close to the location of the Northwest Power Station project for domestic customers. And the place is close to Tianjin Port, which is conducive to export.

However, large-scale project investment will also bring a certain burden to enterprises. JinkoSolar's debt ratio is higher than that of its peers. According to the annual report, Jingke Energy's debt ratio reached 73.99 percent. The company's total liabilities increased quarter by quarter, reaching 97.756 billion yuan by the end of last year.

JinkoSolar said in its financial report that in 2024, it will maintain a cautious pace of expansion, giving priority to focusing on the landing of advantageous production capacity such as Shanxi's large base, while accelerating the elimination of backward production capacity.

Li Xiande, chairman of the company, also said in an interview with reporters at the interface that Jingke has now stopped almost all investment plans in terms of production expansion, retaining only the base construction in Shanxi and the investment in Vietnam.

Li Xiande believes that Shanxi's large base is the future manufacturing trend. The industry needs innovation in technology and mode, and Jingke will insist on completing it. Although the market is facing the challenge of overcapacity, such capacity construction will provide better support for Jingke to improve the competitiveness of the industry in the future.

JinkoSolar plans to reach 120 GW,110 GW and 130 GW of advanced production capacity for silicon wafers, batteries and components respectively by the end of 2024, of which N-type production capacity will exceed 100 GW. The company plans to reach an annual shipment target of 100-110 GW, of which N-type shipments account for nearly 90%.

the fire broke out in Shanxi large base, and the above target plan of Jingke Energy was affected to some extent.

last year, jingke energy component shipments increased by 77.1 year-on-year to 78.5 GW, surpassing longi green energy (601012.SH) to become the world's largest component shipments, which is also the fifth time it has taken this position.

JinkoSolar is one of the earliest companies in the industry to lay out TOPCon battery technology, fully enjoying the technology dividend. In 2023, JinkoSolar achieved operating income of about 118.682 billion yuan, an increase of 43.55 percent over the same period last year; net profit attributable to shareholders of listed companies was about 7.44 billion yuan, an increase of 153.2 percent over the same period last year.