JinkoSolar's net profit plummets 79% in Q2 2021

JinkoSolar energy storage solution. Image by JinkoSolar.

Chinese solar module maker JinkoSolar Holding Co Ltd (NYSE:JKS) booked a second-quarter net attributable profit of CNY 66.2 million (USD 10.3m/EUR 8.7m), a 79.2% drop from a year ago mainly due to the impacts of convertible senior notes, the company said announcing its inaudited results.

Revenues fell by 6.2% year-on-year to CNY 7.93 billion as a result of a decrease in the shipment of solar modules. The company’s total shipments, including solar modules, cells and wafers, rose by 16.4% year-on-year to 5,203 MW.

"As prices along the supply chain remain high, but relatively stable, we see overall acceptance of price increases continuing well into the second half of the year. Demand for modules is gradually resuming, and our module production volume increased remarkably month-over-month in the third quarter", Xiande Li, JinkoSolar's chairman of the board and CEO, commented,

Details on the company's financial performance are available in the table:

Numbers in CNY, unless otherwise noted:	Q2 2021	Q2 2020
Net profit	66.2m	318m
Gross profit	1.36bn	1.51bn
Gross margin	17.1%	17.9%
Non-GAAP net income	274.7m	376.1m
Total revenues	7.93bn	8.45bn

For the following quarter, JinkoSolar expects total shipments to range between 5 GW and 5.5 GW. Of this, solar modules shipments are expected to account for 4.5 GW to 5 GW.

Third-quarter revenue is seen to stand at between USD 1.24 billion (EUR 1.05bn) and USD 1.37 billion. Gross margin for July-September is forecast to be within 12%-15%.

Full-year shipments, including modules, cells and wafers, are still expected to range between 25 GW and 30 GW.

(CNY 1.0 = USD 0.155/EUR 0.131)

(USD 1.0 = EUR 0.849)

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