JinkoSolar releases positive Q1 results; announces new US president

02. May 2011 | Industry & Suppliers | By:  Becky Stuart

JinkoSolar has weathered the slow start to the 2011 photovoltaics industry well, having posted positive first quarter results. Of particular note were its solar module shipments. It has also announced Ron Kenedi as the new president of JinkoSolar (U.S.) Inc.

JinkoSolar screenshot

JinKoSolar experienced a positive first quarter despite many companies falling below their targets. Image: JinkoSolar.

JinkoSolar has achieved record revenues in the first quarter of this year, having reached RMB2.1 billion (around US$326.7 million). This is an increase of 21.1 percent from RMB1.8 billion in the fourth quarter of 2010 and 289.8 percent from RMB548.9 million in the first quarter of last year.

The Chinese solar module manufacturer cites strengthened brand recognition and geographical diversification as reasons for this sales increase. 

In terms of its solar products, module shipments were said to be particularly positive, with the company having shipped 166.6 megawatts (MW) of solar modules in the first quarter of this year, compared to 111.6 MW in the fourth quarter of 2010.

Meanwhile, it shipped 34.3 MW of silicon wafers and 7.5 MW of solar cells in the first quarter of 2011 as opposed to 39 MW of silicon wafers and 12 MW of solar cells in the previous quarter.

Gross profit moderately increased by 11.2 percent from the fourth quarter of 2010 to hit RMB559.7 million (US$85.5 million). However, in comparison to the first quarter of last year, the company’s gross profit grew by 331.2 percent from RMB129.8 million.

JinkoSolar’s gross margin experienced a decline in the first quarter of this year in comparison to the last quarter of 2010, from 28.5 percent to 26.2 percent. Compared to the first quarter of last year though, the company’s gross margin has increased from 23.7 percent.

The company attributes the sequential decrease in gross margin to a slight increase in the average polysilicon cost and a decrease in the average selling price of solar modules.

In-house gross margin relating to its in-house silicon wafer, solar cell and solar module production experienced a decrease, having gone from 32.2 percent and 34.7 percent in the first and fourth quarters of 2010 respectively to 31 percent in the first quarter of this year.

This decline was said to be due to the faster decrease in the average selling prices of solar modules relative to the decrease in the average polysilicon cost per watt.

Income from operations in the first quarter of 2011 was RMB419.4 million (US$64.0 million), an increase of 15.6 percent from RMB362.8 million in the fourth quarter of 2010 and an increase of 331.9 percent from RMB97.1 million in the first quarter of 2010.

Meanwhile, operating margin in the first quarter of 2011 was 19.6 percent, compared to 17.7 percent and 20.5 percent in the first and fourth quarters of last year respectively.

Total operating expenses, on the other hand, in the first quarter of 2011 were RMB140.3 million (US$21.4 million), which is a decrease of 0.3 percent from RMB140.7 million in the fourth quarter of 2010 and an increase of 329.1 percent from RMB32.7 million in the first quarter of 2010.

The sequential decrease in operating expenses was attributed to the disposal of the JinkoSolar's "obsolete" silicon wafer equipment in the fourth quarter of last year.

Future guidance

For the second quarter of the year, JinkoSolar expects total solar module shipments to be in the range of 190 MW to 200 MW. Total revenues are expected to be in the range of US$330 million to US$350 million. The company adds that it expects to increase its in-house annual silicon wafer, solar cell and solar module production capacities to approximately 1,000 MW each by the end of the second quarter of 2011.

For the full year, the company maintains its guidance range of 950 MW to 1,000 MW in total solar module shipments and US$1.4 billion to US$1.5 billion in total revenues.

"JinkoSolar continued its growth trajectory during the first quarter of 2011," commented Kangping Chen, JinkoSolar's chief executive officer. "During the quarter, we exceeded our guidance in terms of revenue and beat expectations for our solar module shipments while continuing to make timely deliveries despite the uncertainty surrounding Italy's solar policies. This helped us maintain strong relationships with our customers in Italy as well as in Germany, strengthening our position as a leading solar module provider in those countries."

In other news, JinkoSolar has appointed Ron Kenedi as president of JinkoSolar (U.S.) Inc. Before joining the company, he served as the vice president of Sharp Solar Energy Solutions, the solar arm of Sharp Electronics Corp. in the U.S.


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