JinkoSolar reports Q2 profit, record-high shipments

Solar panels. Featured Image: Jackiso/Shutterstock.com

Chinese firm JinkoSolar Holding (NYSE:JKS) today reported an attributable net profit of CNY 280.1 million (USD 42m/EUR 37m) for the second quarter (Q2) of 2016, and record-breaking solar module shipments.

The result compares to a profit of CNY 313.3 million for the first quarter of 2016 and CNY 76.4 million for Q2 2015.

On a non-GAAP basis, net profit attributable to the company's ordinary shareholders increased to CNY 421.8 million from CNY 414.6 million in the prior quarter and CNY 206.8 million in April-June 2015.

The table gives more detail about JinkoSolar’s Q2 results.

Results in CNY	Q2 2016	Q1 2016	Q2 2015
Total revenues	5.96 billion	5.47 billion	3.2 billion
Gross margin	20.4%	21.3%	20.7%
Income from operations	445.1 million	573.7 million	237.0 million

The company explained the sequential decline in its gross margin with a rise in punitive tariffs paid for solar modules produced in China and shipped to the US.

The 8.9% quarter-on-quarter and 86.1% year-on-year increases in total revenues came as total solar module shipments hit the record 1,716 MW, including 204 MW used in the firm’s own downstream projects. For comparison, shipments in Q1 2016 were 1,600 MW. The US and China accounted for the majority of the company’s shipments in April-June 2016.

Meanwhile, the firm’s solar power plants generated 327 GWh of electricity, translating into revenue of CNY 288.5 million. As of end-June, JinkoSolar had connected 1,130 MW of solar power facilities.

(CNY 100 = USD 1.502/EUR 1.331)

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