JinkoSolar misses Q1 module shipment guidance

As with many of its peers, JinkoSolar continues to weather the current solar storm. Its Q1 2012 financials have seen improvement, although the overall picture remains bleak. Module shipments, gross margin and revenue were particularly affected.

Net loss for the first three months of this year amount to RMB356.3 million (US$56.6 million), which was an improvement on the RMB366.6 million lost in Q1 2011, but fell short of the RMB336.6 million net income reaped in Q1 2011. In non-GAAP terms, Q1 2012 net loss was RMB330.5 million, compared to a loss of RMB370.8 million in Q4 2011, and non-GAAP net income of RMB336.6 million in Q1 2011.

Q1 2012 loss from operations, meanwhile, hit RMB306 million ($48.6 million), compared with a loss of RMB316.1 million in Q4 2011, and an income of RMB419.4 million in Q1 2011. In the same period, operating margin was significantly affected, having recorded 28.9 percent in Q1 2012, compared with negative 26.4 percent in Q4 2011, and positive 19.6 percent in Q1 2011.

Q1 2012 revenues were also down, from RMB1.2 billion in Q4 2011, and RMB2.1 billion in Q1 2011, to RMB1.1 billion ($168.3 million). On the other hand, Q1 2012 gross profit was RMB7 million ($1.1million), compared to a loss of RMB52.3 million in Q4 2011, and a profit of RMB559.7 million in Q1 2011. "Gross profit during the first quarter of 2012 was impacted by a provision of RMB18.6 million (US$3.0 million) for preliminary U.S. countervailing and anti-dumping duties," explained JinkoSolar in a statement released.

Looking at gross margin, some positive gains were seen, with Q1 2012 achieving 0.7 percent, compared with negative 4.4 percent in Q4 2011, and positive 26.2 percent in Q1 2011

Overall, Q1 2012 total operating expenses were RMB313 million ($49.7 million), an increase from RMB263.8 million in Q4 2011, and RMB140.3 million in Q1 2011.

Missing its Q1 2012 shipment guidance, but still improving on previous quarters, JinkoSolar shipped 249 MW of solar products, including 80.1 MW of silicon wafers, 11.8 MW of solar cells and 157.1 MW of solar modules, compared to 227 MW in Q4 2011, consisting of 41 MW of silicon ingots and wafers, 16.9 MW of cells and 169.1 MW of modules. In Q1 2011, the company shipped 208.4 MW of solar products.

Looking to Q2 2012, JinkoSolar expects to ship between 200 and 240 MW of modules. The company added that in-house annual silicon ingot and wafer, cell and module production capacity are each expected to be around 1.2 GW by the end of the year. It declined to provide any further guidance.