JinkoSolar's Q2 profit rises 26.6% y/y


August 30 (Renewables Now) - Chinese solar modules maker JinkoSolar Holding Co Ltd (NYSE:JKS) today reported an attributable net profit of CNY 125.4 million (USD 17.5m/EUR 15.9m) for the second quarter of 2019, compared to a profit of CNY 99 million a year back.

In April-June 2019, the company saw its revenues rise by 14.1% on the year to CNY 6.91 billion mainly thanks to an increase in the shipment of solar modules, which amounted to 3,386 MW compared to 2,794 MW in the second quarter of 2018. This was partially offset by a decline in the average selling price of solar modules in the second quarter of 2019.

The following table provides more details about the company’s performance during the second quarter (Q2) and first half (H1) of 2019.

Figures in CNY, except percentages Q2 2019 Q1 2019 Q2 2018 H1 2019 H1 2018
Total revenues 6.91bn 5.82bn 6.06bn 12.7bn 10.6bn
Gross margin (%) 16.5% 16.6% 12.0% -- --
Net income attr. to ordinary shareholders 125.4m 40.2m 99m 165.6m 102.6m
Non-GAAP net income attr. to ordinary shareholders 202.9m 33.3m 106.7 236.2m 117.7m

JinkoSolar explained the year-on-year improvement in gross margin with a decrease in solar module cost in the second quarter of 2019.

For the third quarter of the year, the company forecasts total solar module shipments of 3.2 GW to 3.5 GW, total revenue in the range of USD 980 million (EUR 887.5m) to USD 1.07 billion, compared to USD 1.01 billion in Q2 2019, and gross margin of 18%-20%. For the full year 2019, it sees shipments ranging from 14 GW to 15 GW.

“With the expansion of our mono wafer production capacity and optimization of cost structure, we are confident that our bottom line will have room to grow during the second half of the year,” commented CEO Kangping Chen.

The table below shows the company's annual solar products production capacity as of June 30, 2019, and its targets for the end of the year.

Type of product June 30, 2019 Target for end-2019
Silicon wafer 10.5 GW (including 6.5 GW of mono wafers) 15.0 GW (including 11.5 GW of mono wafers)
Cells 7.4 GW (including 5.8 GW of PERC cells) 10.5 GW (including 9.7 GW of PERC cells)
Modules 12.6 GW 16.0 GW

(CNY 1.0 = USD 0.140/EUR 0.127)

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