Rising costs weigh on JinkoSolar's 2022 net profit

Chinese solar module maker JinkoSolar Holding Co Ltd (NYSE:JKS) saw its net attributable profit slip by 7.7% on the year in 2022, regardless of the strong market demand that boosted shipments and revenues.

The company’s net profit attributable to ordinary shareholders last year came in at CNY 665.2 million (USD 96.2m/EUR 90.4m), against CNY 721 million in 2021, its financial report showed on Friday. On an adjusted basis, to exclude the impact of a change in the fair value of the company’s convertible senior notes, long-term investment and share-based compensation expenses, net earnings more than doubled, increasing to CNY 1.44 billion from CNY 538.7 million.

During the past year, JinkoSolar shipped 46,580 MW of photovoltaic (PV) products, including 44,520 MW of solar modules and 2,060 MW of cells and wafers. Overall, total shipments were 84.5% higher than in the previous year.

As a result of the growing shipments, revenues soared by 104.6% in annual terms. Despite the sharp increase, the gross margin fell to 14.8% due to an increase in the cost of silicon.

"We closed a challenging 2022 with satisfactory results as we delivered strong operational and financial performance in the fourth quarter,” said chairman and CEO Xiande Li.

12.35bn

665.2m

JinkoSolar is in the process of expanding its production and expects its annual manufacturing capacity for mono wafers, solar PV cells and modules to reach 75 GW, 75 GW and 90 GW, respectively, by the end of 2023. Its module shipments in the current year are forecast to range between 60 GW and 70 GW, with the first quarter alone seen to account for some 11 GW-13 GW of the total.

(CNY 1.0 = USD 0.145/EUR 0.136)

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