Consequently, the company has raised its total solar product shipments guidance and expects to increase its in-house production capacities.
The company says it has achieved a number of records throughout the financial period. Noteworthy are the companys solar product shipments, which surpassed its initial guidance of between 100 megawatts (MWs) to 110 MWs to reach 134.8 MWs. This figure is in comparison to the 99.9 MWs seen in the second quarter of the year and 64.0 MW in the third quarter of 2009, representing an increase of 34.9 percent sequentially and 110.6 percent year-on-year.
Broken down, 33.7 MW of shipments comprised silicon wafers, 8.6 MW solar cells and 92.5 MW of solar modules.
Total revenues also reached an all time high, with the company seeing a record RMB1.4 billion (USD$215.0 million), which is an increase of 59.7 percent sequentially and 260.5 percent year-on-year. JinkoSolar says this sequential increase was primarily due to the increase in the sales volume, particularly in solar modules, as its product mix shifted from wafer to module, as well as an increase in the average selling price of the company's solar modules.
Furthermore, its gross margin was a record 33.5 percent, compared to 26.9 percent for the second quarter of the year and 15.8 percent for the third quarter of 2009, while net income hit RMB259.5 million (USD$38.8 million) (which includes the effect of a loss of RMB73.7 million (USD$11.0 million) as a result of the change in fair value of foreign exchange forward contract derivatives), an increase of 43.6 percent sequentially and 1,766.9 percent year-on-year.
The company added that it increased the vertical integration of its production process with annual silicon wafer, solar cell and solar module production capacities reaching approximately 600 MW, 300 MW and 450 MW, respectively.
For the fourth quarter of the year, JinkoSolar says it expects total solar product shipments to be in the range of between 130 MW and 140 MW, with module shipments expected to be between 100 MW to 110 MW. Total revenues are expected to be in the range of USD$210 million to USD$220 million.
Based on the current operating conditions, the company has also raised its full year 2010 total solar product shipments guidance to an estimated range of 448 MW to 458 MW, from its earlier guidance of 395 MW to 415 MW. Module shipments are expected to be in an estimated range of 257 MW to 267 MW for the full year 2010, as compared to its earlier guidance of 195 MW to 205 MW.
It has also raised its full year 2010 revenue guidance to an estimated range of USD$638 million to USD$648 million, as compared to its earlier guidance of USD$500 million to USD$525 million.
Additionally, JinkoSolar has said that it expects to increase its in-house annual silicon wafer, solar cell and solar module production capacities to approximately 600 MW each, as compared to the original guidance of 500 MW each by the end of 2010.
"We are pleased to deliver another quarter of robust growth," said Mr. Kangping Chen, JinkoSolar's chief executive officer. "During this third quarter, we achieved record revenues and shipments, both of which exceeded our previous targets. We continued to execute on our vertical integration strategy, increasing our capacities and improving control over manufacturing processes and costs ( ) We have also secured additional solar module contracts for 2011 with both existing and new leading solar companies across a number of geographical regions. We expect to continue our strong momentum in the fourth quarter and believe we are well positioned to become a leader in the solar industry."
Mr. Longgen Zhang, JinkoSolar's chief financial officer, added: "We significantly exceeded our third quarter revenue targets, achieved record gross margin and our net income nearly doubled as we continued to expand our capacities to capitalize on economies of scale. Through continuous improvements in operation efficiency and technology advancements we have significantly lowered our non-silicon cost ahead of our cost reduction roadmap throughout the value chain. With a healthy cash position and competitive manufacturing costs, we are poised to expand our operations and expect to deliver robust results for the full year 2010."
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