JinkoSolar Holding Co Ltd (NYSE:JKS) today reported higher profits for the second quarter of 2018 and said China’s new solar policies will have a relatively limited impact on operations over the short-term.
The Chinese solar manufacturer is optimistic about its prospects and it is working to secure large long-term orders in a number of markets in Latin American, the Middle East and North Africa, where solar demand is growing, said CEO Kangping Chen. He also noted that the company will be taking full advantage of its production facility in Florida to grow its US presence.
Photovoltaic (PV) module shipments in April-June jumped by 38.7% quarter-on-quarter to 2,794 MW. In the third quarter, JinkoSolar expects them to reach 2.8 GW to 3 GW, while its full-year forecast remains unchanged at 11.5 GW to 12 GW. In 2017, the company ranked as the world’s number one PV module supplier with 9.8 GW.
The growth in second-quarter shipments helped boost total revenues by 32.7% quarter-on-quarter, even as the average selling price (ASP) fell. This, however, caused the gross margin to drop to 12% from 14.4% in the first quarter. In year-on-year terms, revenues were down as the ASP of modules was lower and shipments also contracted slightly.
Details on the company’s performance are available in the table.
Results in CNY million,
unless specified |
Q2 2018 |
Q1 2018 |
Q2 2017 |
| Total module shipments (in MW) |
2,794 |
2,015 |
2,884 |
| Total revenues |
6,061 |
4,567 |
7,924 |
| Gross margin (in %) |
12 |
14.4 |
10.5 |
| Income from operations |
94.6 |
125 |
85.3 |
| Net income to ordinary shareholders |
99 |
3.6 |
47.4 |
| Non-GAAP net income to ordinary shareholders |
106.7 |
11 |
61.2 |
“Growth during the quarter was strong and we expect this momentum to continue into the second half of the year despite the impact from the new policies issued by the Chinese government on May 31 as shipments to overseas markets are expected to continue growing and account for an increasing proportion of our shipments,” Chen said.
JinkoSolar has good visibility of its order book for the entire year, which mainly contains overseas orders to markets which are growing rapidly. The company’s CEO said such markets are expected to generate significant opportunities ahead.
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Solar panels. Author: John S. Quarterman. License: Creative Commons, Attribution 2.0 Generic.
