JinkoSolar turns to USD 49m net loss in Q2 2012

Aug 23, 2012 - Chinese solar products maker JinkoSolar Holding Co Ltd (NYSE:JKS) today reported a net loss of CNY 310.5 million (USD 48.9m/EUR 38.9m) for the second quarter of 2012, against a net profit of CNY 235.3 million a year earlier.

In the first quarter of 2012, the company posted a net loss of CNY 356.3 million.

Operating loss was CNY 82.5 million, versus a CNY-409.9-million profit in the same quarter of 2011. The company booked a foreign currency exchange loss of CNY 178.2 million in the reporting period.

Gross margin fell to 8.4% from 25.4% a year earlier. That, however, marked an improvement from 0.7% in the first quarter of 2012, reflecting continued decline in polysilicon and auxiliary material costs as well as improved operating efficiency, offset in part by a further decrease in module average selling prices.

"We are pleased with the improvements in our performance in the second quarter as market conditions remained difficult due to continued module oversupply and global economic weakness," chief executive Kangping Chen said.

Revenues were down 45.4% year-on-year at CNY 1.2 billion. Total solar product shipments, including solar modules, silicon wafers and solar cells, rose 18.9% to 302.1 MW.

Chen said the quarter had seen strong shipments to Italy and Germany and added that the company continued with its diversification away from Western Europe into new emerging markets. He also said that China was still expected to provide growing opportunities as the company expanded its project development and engineering, procurement and construction business in the country together with its module sales.

For the third quarter of 2012, JinkoSolar guided for module shipments of between 250 MW and 280 MW, compared with 223 MW in the second quarter.

(CNY 1.0 = USD 0.157/EUR 0.125)

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