JinkoSolar reports successful Q2 despite difficult market


Having shipped 99.9 megawatts (MW) of photovoltaic products in Q2 2010 and 208.4 MW in Q1 2011, JinkoSolar upped the ante to ship a "record" 254.1 MW in Q2 2011. This figure comprised 36.5 MW of silicon wafers, 11.8 MW of cells and 206.7 MW of modules.

Total revenues performed just as exceptionally, having risen from RMB900.6 million (US$141 million) in Q2 2010 and RMB2.1 billion in Q1 2011 to hit RMB2.3 billion (US$350.6 million) this quarter. The manufacturer attributes its success to an increase in the sales volume of its solar modules.

Gross profit was another Q2 2011 winner, generating RMB576.4 million (US$89.2 million) as opposed to RMB2.1 billion in Q1 2011 and RMB900.6 million in Q2 2010. Meanwhile, at 25.4 percent, gross margin suffered a decline, from 26.2 percent in Q1 2011 and 26.9 percent in Q2 2010. This decrease was attributed to the falling costs of modules.

In terms of JinkoSolar’s in-house silicon wafer, solar cell and solar module production, the company also saw a decrease in its in-house gross margin, from 32.9 percent and 31 percent in Q2 2010 and Q1 2011 respectively to 30.5 percent.

Operational income, on the other hand, suffered a sequential loss of 2.3 percent, having fallen from RMB419.4 million in Q1 2011 to RMB409.9 million (US$63.4 million) in Q2 2011. However, year-on-year, it increased by 172 percent from RMB150.7 million.

The same was true for the company’s operating margin, which fell from 19.6 percent in Q1 2011 to 18.1 percent in Q2 2011, but increased from last year’s 16.7 percent.

Total operating expenses, meanwhile, hit RMB166.5 million (US$25.8 million) in Q2 2011, up sequentially from RMB140.3 million and RMB91.5 million in Q2 2010.

Guidance reiterated

Based on its positive results, JinkoSolar expects in Q3 2011 to ship between 230 and 250 MW of modules. Additionally, it forecasts that total revenues will be in the range of US$310 million to US$330 million.

The manufacturer says it will also increase its in-house annual silicon wafer, solar cell and module production capacities to around 1.3 gigawatts each by the end of Q3.

Overall, it has reiterated its full year guidance, which includes shipping between 950 and 1,000 MW of solar modules and reaping revenues of between US$1.4 billion and US$1.5 billion.