JinkoSolar Q2 net profit skyrockets 2,653% from previous quarter

JinkoSolar, a global leader in the solar PV industry, has posted a Q2 solar module shipment and revenue increase of 38.7%, to 2,794MW, mainly driven by continuous demand and new product launches, the company announced in a statement.

Gross profit increased 11% while Q2 net profit increased by 2,653% compared to the previous quarter and 109% compared to the equivalent quarter a year earlier as a result of strong global sales network, higher capacity utilization.

Industry-leading cost structure helped offset the impact of new policies implemented by the Chinese government last May.

As for the second half of 2018 and the year overall, the company has a good picture of orders, predominantly comprised of overseas orders and markets growing rapidly for significant opportunities ahead. Based on the current business outlook, the company is expected to deliver 6.7GW-7.2GW of solar panels during the second half of the year, representing a 40% sequential increase. On a full-year base, shipments are expected to reach between 11.5GW–12GW, increasing by 17% year-on-year, for a performance to establish the company at the forefront.

Moreover, JinkoSolar’s gross margin and net income are expected to grow significantly in Q3 and Q4 this year due to continual operational efficiency improvement, a diversified customer base, highly competitive products and a higher level of R&D activities.

Commenting on the Q2 results, Kangping Chen, CEO of JinkoSolar, noted: “We are taking full advantage of our market leader position and production facility in Florida to expand our presence in the US market. Demand in emerging markets continues to grow, especially in Latin American, the Middle East and North Africa. We are deploying our resources there towards securing large, long-term orders through our mature sales network which spans a number of markets. We believe that the Indian solar sector will maintain its long-term growth trajectory despite the short-term impact of recently announced tariffs and we will continue to explore opportunities there.”

Regarding the impact of China’s latest policy, from the global perspective, the policy is expected to accelerate grid parity worldwide, and incubate numerous growth drivers for the industry. Even in China, demand from the Top Runner Program, poverty alleviation projects, local government subsidies, and self-contained DG projects will continue to drive the growth in the Chinese market, especially in regions with ample sunlight and high commercial power prices.

China’s policy is also expected to push the agenda for industrial upgrades and accelerate industry’s consolidation by phasing out outdated production capacities and replacing them with high-efficiency ones. China’s policy will also push the rapidly falling cost of solar, making solar more competitive and stimulating the global demand. It is anticipated that grid parity spurred by China’s current policy will lead to new waves of demand for years to come. Demand in emerging markets, requires high performance and better prices, surged, JinkoSolar observed. Its advanced technology and production suits these markets well.

As for R&D progress and new product availability, JinkoSolar has made significant progress in improving wafer efficiency and reducing both oxygen content and light-induced degradation. It is increasing the mono PREC cell capacity which will reach 4.2GW by the end of year. It had been also investing in N-type technology, especially HOT double-sided cell technology. The falling cost of raw materials and the company’s deep experience in rapidly rolling out new technologies will allow it to further optimize cost structure going forward.

JinkoSolar has successfully ramped up and already achieved good yield for its Cheetah series.

It also made significant progress in improving manufacturing capacity, consistently demonstrating high yield on its super-smart factory in Shangrao. MES and other intelligent manufacturing equipment and IoT based control system run well in its labs. This GW scale super smart factory will be ready for high-volume production in H2 2018 and 2019.

JinkoSolar believes it is now in a good position and fully prepared for new and upcoming opportunities.