JinkoSolar Squeezes out Growth on Higher Shipments in Third Quarter of 2020

Chinese solar panel manufacturing major JinkoSolar has announced its third-quarter 2020 financial results on 7th December 2020.

Financial Results:

The company had total revenue of RMB 8.77 billion (USD 1.29 billion), an increase of 3.8% from RMB 8.45 billion and 17.2% from RMB7.48 billion from the second quarter of 2020 and the third quarter of 2019, respectively. The increase was mainly on the back of higher volume shipments of its solar modules.

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Gross profit in the third quarter of 2020 was lower than the second quarter of 2020 and the third quarter of 2019 as it was RMB1.49 billion (USD 220.2 million), RMB1.51, and RMB1.59, respectively.

Kangping Chen, JinkoSolar’s Chief Executive Officer, said, “JinkoSolar delivered solid results for the quarter with total revenue, total solar module shipments, and gross margin all within our guidance range. Module shipments reached a new high of 5,117 MW, an increase of 14.5% sequentially and 53.8% year-over-year.

“Even though we faced some pressures this quarter due to the shortage of raw materials which increased production costs, coupled with the impact of US dollar fluctuations and higher logistics and transportation costs, we have approached these issues proactively in a few ways. “

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Total operating expenses accounted for 10.8% of total revenues in the third quarter of 2020, compared to 12.8% in the second quarter of 2020 and 12.8% in the third quarter of 2019.

As of September 30, 2020, the Company’s in-house annual mono wafer, solar cell, and solar module production capacity was 20 GW, 11GW (10.2 GW for PERC cells and 800 MW for N-type cells), and 25 GW, respectively.

The for expects U.S.solar demand to more than double over the next five years under the Biden administration. In Europe, the EU has officially announced plans to increase the GHG reduction target from 40% to at least 60% below 1990 levels by 2030. In China, hopes are pinned to the next 14Th Five-Year Energy Plan to focus on non-fossil energy sources with higher proportions of renewable energy, construction plans for large-scale energy storage and grid transformation, and the introduction of supporting policies.

The firm has moved completely to Mono based high-efficiency products, with such products expected to account for nearly 100% of solar module shipments in 2020, compared to 74% in 2019

The market share of JinkoSolar is projected to further step up to approximately 15% for the full year 2020, compared to approximately 12% in 2019, according to the firm.