JinkoSolar Holding Co., Ltd. ("JinkoSolar" or the "Company") (NYSE: JKS), one of the largest and most innovative solar module manufacturers in the world, today (Dec 7) announced its unaudited financial results for the third quarter ended September 30, 2020.
Strategic Business Updates
- Technological transformation towards high-efficiency product portfolio now complete:
- Mono wafer production capacity has been fully ramped up to 20GW
- Mono based high efficiency products expected to account for nearly 100% of solar module shipments in 2020, compared to 74% in 2019
- Next-generation high-efficiency Tiger Pro Modules well received by the market with secured orders exceeding 2 GW as of the end of October
- Industry consolidation accelerating at the backdrop of a challenging macroeconomic environment. Market share of JinkoSolar projected to further step up to approximately 15% for full year 2020, compared to approximately 12% in 2019
- Successfully maintained stable margin performance despite recent supply shortage of major raw materials, thanks to stringent cost control and resilient supply management
- Further policy tailwinds from major economies such as China and the US underpins strong future solar demand outlook
- Principal operating subsidiary Jinko Solar Co., Ltd raised approximately US$458 million in preparation for its listing on the STAR market
Third Quarter 2020 Operational and Financial Highlights
- Quarterly shipments were 5,117MW, up 53.8% year over year
- Total revenues were US$1.29 billion, up 17.2 % year over year
- Gross profit was US$220.2 million, up 8.2% year over year [1]
- Gross margin of 17.0%, compared with 17.9% in Q2 2020 and 18.5%[2] in Q3 2019
- Income from operations of US$80.4 million, up 27.9 % year over year[3]
- Non-GAAP net income of US$47.3 million, up 6.7% year over year
- Net income of US$1.0 million, due to US$46.1 million loss of change in fair value of convertible senior notes and call option, given the sharp rise in stock price for the third quarter.
[1] Calculation of year over year growth was based on total revenue excluding the reversal benefit of anti-dumping (AD) and countervailing duty (CVD)
[2] Gross margin excluding the reversal benefit of anti-dumping (AD) and countervailing duty (CVD)
[3] Calculation of year over year growth was based on income from operations excluding the reversal benefit of anti-dumping (AD) and countervailing duty (CVD)
Mr. Kangping Chen, JinkoSolar's Chief Executive Officer, commented, "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. Total revenue during the quarter were US$1.29 billion, an increase of 3.8% sequentially and 17.2% year-over-year, while gross profit was US$220.2 million. For the full year 2020, we expect total solar module shipments to be in the range of 18.5 GW to 19 GW. By the end of 2020, we expect our in-house annual monocrystalline silicon wafer, solar cell and module production capacity to reach 20 GW, 11 GW and 30 GW, respectively."
"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. We managed to ensure the stable supply of core raw materials and auxiliary materials through long-term purchase agreements, strategic cooperation, and our R&D team identified and applied substitute materials to help ease supply chain volatility."
"With the approach of grid parity, leading companies will become more competitively positioned and benefit the most from technological advancement, sophisticated R&D, well-established distribution channels and cost reductions in the PV industry. In this scenario, the industry stands to gain from the positive effect of top players continuously striving for technical innovation and product iterations, which will further promote the growth of the supply chain."
"We strongly believe that the PV industry has ushered in a golden age, together with strong support from government policies to adopt renewable energy, promote grid transformation and green investments. In the U.S., solar demand is expected 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, we are expecting 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."
"Solar power has had the largest cost reduction in recent years, and we believe there is more room for growth next year. We are well positioned to capitalize on the accelerating global demand for clean energy and the expected rapid growth in shipments in 2021. We are constantly evaluating all our production lines to increase production capacity and ensure appropriate integrated production level accordingly to continue to offer high quality products and reinforce our leading position in the global PV industry."
For more information
343 Sansome Street, Suite 975
San Francisco California
United States 94104
www.jinkosolar.com
