Jinko’s module shipments in the second quarter increased significantly compared with the first quarter, despite the negative impact caused by the global pandemic, Q2 2020 financial results just released by the company have shown.
Strategic Business Updates:
- Module shipments in the second quarter increased significantly compared with the first quarter, despite the negative impact caused by the global pandemic.
- Large-area N-Type monocrystalline silicon solar cell reached a record high efficiency of 24.79%.
- Demand and deployment of large-size modules exceeded expectations. The company recently launched its Tiger Pro N-type large-size module products with maximum power output of up to 610 W.
- Industry consolidation is accelerating due to increased competition in a challenging economic environment. Module shipments of the top five module manufacturers are expected to account for 65% to 70% of the total shipments in the industry this year.
- Announced the plan to list the Company’s principal operating subsidiary Jiangxi Jinko on the Shanghai Stock Exchange’s Sci-Tech innovation board, or the STAR Market.
Second Quarter 2020 Operational and Financial Highlights
- Total solar module shipments were 4,469 megawatts (“MW”), within JinkoSolar’s guidance range of 4.2 GW to 4.5 GW, an increase of 31.0% from 3,411 MW in the first quarter of 2020 and an increase of 32.0% from 3,386 MW in the second quarter of 2019.
- Solar Products Production Capacity – as of June 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.
- Total revenues were RMB8.45 billion (US$1.20 billion), exceeding JinkoSolar’s guidance range of US$1.10 billion to US$1.18 billion; a decrease of 0.4% from the first quarter of 2020 and an increase of 22.2% from the second quarter of 2019.
- Gross margin was 17.9%, within JinkoSolar’s guidance range of 16.0% to 18.0%, compared with 19.5% in the first quarter of 2020 and 16.5% in the second quarter of 2019.
- Income from operations was RMB434.7 million (US$61.5 million), compared with RMB732.7 million in the first quarter of 2020 and RMB260.3 million in the second quarter of 2019.
- Net income attributable to the Company’s ordinary shareholders was RMB318.0 million (US$45.0 million) in the second quarter of 2020, compared with RMB282.4 million in the first quarter of 2020 and RMB125.4 million in the second quarter of 2019.
Operations and Business Outlook
- Strong market demand is expected to continue until the end of the year. COVID-19 has negatively impacted demand and caused substantial challenges across the supply chain, which is expected to further accelerate market consolidation within the industry. The penetration of large-size modules exceed expectations.
Third Quarter and Full Year 2020 Guidance
- For the third quarter of 2020, the Company expects total solar module shipments to be in the range of 5.0 GW to 5.3 GW. Total revenue for the third quarter is expected to be in the range of US$1.22 billion to US$1.30 billion. Gross margin for the third quarter is expected to be between 17% and 19%.
- For full year 2020, the Company estimates total solar module shipments to be in the range of 18 GW to 20 GW.
Solar Products Production Capacity
- JinkoSolar expects its annual mono wafer, solar cell and solar module production capacity to reach 20 GW, 11 GW (including 800 MW N-type cells) and 30 GW, respectively, by the end of 2020