JinkoSolar now expects up to 6.7 GW of 2016 shipments

Birds on a solar module. Author: Don McCullough. License: Creative Commons, Attribution 2.0 Generic.

China's JinkoSolar Holding (NYSE:JKS) lifted its guidance for 2016 shipments to 6.6 GW-6.7 GW after third-quarter (Q3) volumes rose 41.6% year-on-year to 1.6 GW.

Previously, the company expected 6 GW to 6.5 GW of full-year photovoltaic (PV) module shipments.

Q3 revenues jumped by 39% on the year to CNY 5.7 billion (USD 827m/EUR 772.7m) because shipments grew at a faster pace than the decrease in average selling prices, and also thanks to higher revenues from solar power generation. In quarter-on-quarter terms, revenue was down by 4.4% due to lower selling prices.

Commenting on key solar markets on Wednesday, CEO Kangping Chen said that “demand in the US is stable despite recent market panic” which Jinko believes would be only temporary.

Details on the firm’s financial performance in the period are available in the table.

Results in CNY	Q3 2016	Q2 2016	Q3 2015
Total revenues	5.70 billion	5.96 billion	4.1 billion
Gross margin	22.1%	20.4%	21.3%
Operating profit	600.9 million	445.1 million	384 million
Net profit to ordinary shareholders	233.7 million	280.1 million	195.1 million
Non-GAAP net profit to ordinary shareholders	305.8 million	421.8 million	253.3 million

GAAP and non-GAAP diluted earnings per ordinary share were CNY 1.51 and CNY 2.34.

The company expects fourth-quarter shipments of 1.7 GW-1.8 GW. As of end-September its in-house annual silicon wafer, PV cell and module production capacity stood at 4.5 GW, 3.7 GW and 6.5 GW, respectively. In the solar power segment, a stake in which was recently sold to Shangrao Kangsheng, Jinko has installed 1,314 MW of capacity.

Jinko had CNY 3.6 billion in cash and cash equivalents and restricted cash at the end of Q3, and total interest-bearing debts were CNY 14.47 billion.

(CNY 10 = USD 1.46/EUR 1.36)

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