JinkoSolar reports improved Q2 financials

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Commenting on the quarter, CEO, Kangping Chen attributed the positive growth to a continued focus on JinkoSolar’s core business and improved efficiency. He added that on the back of a strong project pipeline, which includes over 200 MW of government approved projects in China, 2H 2012 should reap many benefits. "China remains on track to deliver increasing opportunities as we expand our project development and EPC business there alongside our module sales," he said.

Looking at the financials, a net loss of RMB310.5 million (US$48.9 million) was recorded in Q2, an improvement on the RMB356.3 million lost in Q1 2012, but still down on the income of RMB235.3 million seen in Q2 2011. Revenues also improved on Q1, from RMB1.1 billion to reach RMB1.2 billion. They represented a significant decline of 45.4% from Q2 2011, however, which recorded RMB2.3 billion.

Diluted loss per share in Q2 2012 was RMB3.50, compared with RMB4.01 in Q1 2012, and diluted earnings per share of RMB2.23 in Q2 2011.

Q2 2012 gross profit grew to reach RMB103.6 million, from RMB7 million in Q1 2012, but fell from the RMB576.4 million recorded in Q2 2011. Meanwhile, gross margin was 8.4%, compared with 0.7% in Q1 2012, and 25.4% in Q2 2011.

Operating expenses also took the right trajectory, decreasing from RMB313 million in Q1 2012, to RMB186.1 million. They were still up 11.8% on Q2 2011, however, which saw expenses totaling RMB166.5 million. As such, Q2 2012 loss from operations was RMB82.5 million, compared with a loss of RMB306 million in Q1, and an income of RMB409.9 million in Q2 2011.

In terms of shipments, JinkoSolar fell within its guidance range, having shipped a total of 302.1 MW of photovoltaic products in Q2 2012, of which modules comprised 223 MW, silicon wafers, 63.3 MW and cells, 15.8 MW. These figures reflect an upward swing from both Q1 (249 MW) and Q2 2011 (254.1 MW). Looking ahead to Q3 2012, the company expects to ship between 250 to 280 MW of modules.

Shipments to Germany and Italy were said to have been "particularly strong", according to Chen, who added that the company has continued to expand into new markets. "Sales in Eastern Europe continue to show strength as they do in Greece, Canada, Australia, Brazil, Japan and new markets such as Slovenia and Chile are promising. Our sales office in Singapore will allow us to further expand in Southeast Asia, a region where we see great potential in the coming quarters. China remains on track to deliver increasing opportunities as we expand our project development and EPC business there alongside our module sales," he added.