JinkoSolar posts Q4 loss08. March 2012 | Markets & Trends, Industry & Suppliers | By: Jonathan Gifford
Chinese photovoltaic module manufacturer, JinkoSolar, has posted a net loss of US$58.3 million for the fourth quarter (Q4) of 2011. The company attributed the poor result to prices falling faster than anticipated. JinkoSolar did however manage to post full-year income of US$43.4 million, a decrease of 69 percent from 2010.
Total shipments in Q4 were 227 MW, which included 41 MW of silicon wafers, 16.9 MW of solar cells and 169.1 MW of modules. This was down from total shipments of 257.7 MW in the third quarter of 2011.
The year had been a mixed one for the vertically integrated manufacturer, with the company managing to buck the trend towards large losses at the beginning of the year and then having to close its Haining fab for almost a month. The closure was due to a fluoride spill from a waste storage facility contaminating local rivers. Riots broke out and villages were reported to have stormed a JinkoSolar compound.
The events were not included in the company’s quarterly or annual highlights, and Kangping Chen, JinkoSolar's chief executive officer, emphasized falling sales prices as being the biggest challenge facing the company. "Our gross margin continued to be affected by declining average selling prices (ASPs), which continued to fall faster than we anticipated and added pressure to an already uncertain global economic environment. Although the price of polysilicon and other auxiliary materials also fell, the decline was not sufficient to offset our lower ASPs."
Total shipments for the year were reported as being 950 MW, including 134.7 MW in silicon wafers, 55 MW of cells and 760.8 MW of modules.
Despite the trying conditions, 2012 has seen JinkoSolar open new branches in Montpellier, France and also in Australia. Despite the weak European market, the company hopes to strengthen connections in France.
JinkoSolar also expects to continue expanding its module output in 2012. In the first quarter (Q1), the company forecasts between 170 megawatts (MW) and 190 MW in module shipments. For the full-year, module shipments in the range 800 MW to 1,000 MW are expected.
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