On March 11, a significant announcement from JinkoSolar (002459.SZ) drew considerable attention in the industry. The company revealed that Wu Tingdong, aged 50, has resigned from his position as Vice President and Board Secretary, with Qin Shilong, aged 39, stepping in as his successor. Qin previously served as the Deputy General Manager and Secretary of the Board at TCL Zhonghuan. Within JinkoSolar, Wu holds a notable legacy, being one of the “Four Guardians” alongside Niu Xinwei, Huang Xinming, and Li Shaohui, who have all significantly contributed to the company’s success. Notably, prior to Wu’s resignation, both Niu and Huang had already exited the company’s top management roles, indicating that this is more than just a simple personnel change; it signals a shift in internal power dynamics at this leading photovoltaic firm. With JinkoSolar now 25 years old, it stands at another pivotal “crossroads.”
Leadership Transition
Following his resignation, Wu Tingdong will continue to work in a different capacity within JinkoSolar, reportedly moving to a business role while retaining the title of Vice President. Wu joined the company in 2011 and has been an integral part of its journey for 14 years. According to financial reports, from 2011 to 2018, he served in various managerial roles, including Senior Manager of Public Relations and Senior Manager in the Project Development Department, before eventually becoming the Vice President and Board Secretary after JinkoSolar’s successful backdoor listing in September 2019.
Currently, among the “Four Guardians,” only Li Shaohui remains in the executive list. Born in 1974 and now 51, Li has held significant financial responsibilities at Jinko since he joined a year after Wu. A clear trend is emerging within JinkoSolar’s executive team towards younger leadership. For example, Tao Ran, the Director and Deputy General Manager, is 38 years old, while Supervisors Li Jing and Li Binbin are 34 and 29, respectively. As per JinkoSolar’s 2023 financial report, among the 14 members of the board and senior management, 3 are under 40, representing 21.4%, while 5 are between 40 and 49, accounting for 35.7%. Even older executives like Li Shaohui and Cao Yangfeng are still in their prime at ages 51 and 52.
With Qin Shilong joining the management team, JinkoSolar is further embracing youthfulness. This change may have begun in 2021 when the founder, Jin Baofang, saw his eldest daughter, Jin Junhui, abandon a promising political career to join the family business, marking the formal start of the second-generation succession plan. Coincidentally, starting in 2022, the “Four Guardians” began to step back, with Huang Xinming and Niu Xinwei exiting the board that year.
Huang Xinming, born in 1961, joined Jinko a year after its U.S. listing and held key positions, while Niu Xinwei, born in 1965, had previously worked for foreign companies before joining Jinko in 2016. As these veteran leaders gradually retire, the pressing question remains: can JinkoSolar maintain its stability amidst these transitions? Currently, the new leadership faces the daunting challenge of significant financial losses. Recently, JinkoSolar issued a pre-loss announcement, projecting a loss of between 4.5 billion to 5.2 billion yuan for 2024, a stark contrast to the profit of 7.039 billion yuan reported in 2023.
Notably, JinkoSolar reported a loss of only 484 million yuan in the first three quarters of 2024, indicating a staggering loss of over 4 billion yuan in just the fourth quarter. This news has sent shockwaves through the industry, as Jinko has long been regarded as one of the most stable leaders in the photovoltaic sector. According to InfoLink’s global photovoltaic module shipment rankings, JinkoSolar is projected to tie for second place with Longi Green Energy in 2024. Over the past decade, the company has consistently ranked among the top five in module shipments. However, starting in 2024, Jinko seems to be losing some of its stability, with an increase in its debt ratio. By the end of the third quarter of 2024, JinkoSolar’s total liabilities reached approximately 83.9 billion yuan, with a debt-to-asset ratio of 72.15%. Of these liabilities, current liabilities totaled 49.79 billion yuan, including short-term loans and accounts payable exceeding 30 billion yuan, while available cash stands at only 24.2 billion yuan. To alleviate financial pressures, JinkoSolar has recently initiated plans to list in Hong Kong, which, if successful, would make it the first photovoltaic leader to achieve a dual A+H listing.
The Crossroads Ahead
Despite JinkoSolar’s surprising financial performance, the biggest uncertainty for the company lies in its second-generation succession. A pivotal year in Jinko’s history was 2020, when founder Jin Baofang faced an investigation that cast a shadow over the company. However, he ultimately emerged unscathed, after which he adopted a more low-profile approach. This period likely marked the beginning of his consideration for stepping back and nurturing a successor. The ideal candidate at the time was his second daughter, Jin Junmiao, who has remained close to him as the Director of the Procurement Center, earning a strong reputation within the company.
During Jin Baofang’s absence, Jin Junmiao represented JinkoSolar in signing strategic cooperation agreements, marking one of her rare public appearances. The company’s stability during this turbulent period was largely credited to her and the remaining executives. In 2021, changes in the ownership structure of Jinko’s major shareholder, Ningjin County Jingtai Fu Technology Co., Ltd., also took place, with Jin Baofang transferring 25% of his shares to Jin Junmiao, resulting in him holding 70% and Jin Junmiao 25%, while his wife, Fan Caiping, holds 5%. Additionally, Jin Junmiao’s husband, Tao Ran, holds a board position within the company.
Jin Baofang had previously expressed thoughts on retirement, reflecting on the burden of leading a large company. However, the true challenge lies in ensuring a smooth succession. In family businesses, the success of this transition is critical to the future of the company. Just as things seemed to be leaning towards Jin Junmiao taking over, the unexpected return of the eldest daughter, Jin Junhui, disrupted this delicate balance. At that time, she was one of the youngest departmental heads in Hebei Province, enjoying a promising career in politics. Public records indicate that between 1996 and 2009, she held various positions in the Ningjin County government and later in provincial departments until 2021. While the narrative of one daughter pursuing politics and the other preparing for succession was enviable, Jin Junhui’s shift from politics to business altered the dynamics.
Insiders suggest that this change led to intense disagreements between the sisters, with Jin Junmiao seemingly stepping back from company matters in recent years. In 2021, Jin Junhui was appointed as Assistant President at JinkoSolar, and a year later, she joined the board as a director. To maintain fairness, Jin Baofang also transferred some of his shares to his eldest daughter. According to JinkoSolar’s 2023 financial report, Jin Junhui holds 24% of Dongtai Jingtai Fu Technology Co., Ltd., while Jin Junmiao holds 25%, and Jin Baofang holds 51%. Additionally, Jingtai Fu owns 47.35% of JinkoSolar.
Jin Junhui possesses advantages due to her extensive experience in government, making her well-suited for external relations, although her lack of operational management experience may require time to build internal credibility. As JinkoSolar navigates these uncharted waters, the question remains: where will the company head next, and which of the Jin sisters will ultimately take the helm? Only time will tell.
