Chinese solar panel maker Jinko Solar Holdings Co Ltd. achieved record shipments of 2,884 MW in the second quarter of this year. This represents an increase of almost 40% compared to the first quarter, and of 68.1% from the same period of the previous year. Overall, Jinko Solar delivered solar modules totaling almost 5 GW in the first half of the year, the company reported on Wednesday.
Revenue in the second quarter stood at $1.17 billion. This is 37.2% higher than in the previous quarter, and 39.8% up from the same quarter in 2016. Net result for the second came in at $7.0 million. This is slightly below that of the first quarter and only about a sixth of the net profit achieved by Jinko Solar in the second quarter of 2016. At 10.5%, the gross margin was also below the value of the comparison periods.
However, CEO Kangping Chen was satisfied with the results of the second quarter. In the past quarters, for example, Jinko Solar was able to achieve new records in sales of its modules. ” While ASPs declined during the quarter, prices along our supply chain remained relatively high and impacted our margins. We also worked with our OEM partners more extensively than expected during the quarter to ensure timely delivery, which adversely impacted our margins,” Chen said, commenting on the results. In the second quarter, Jinko Solar also had to rely more heavily than expected on its OEM partners, in order to ensure the punctual delivery of its modules. This was also the case for margins. ” We are currently reviewing our strategy in order to improve profitability and further cut down the use of OEM going forward,” Chen went on to say.
The significant increase in sales in the second quarter was due in particular to strong demand in China, driven by the incentive reduction in mid-2017. “This momentum is carrying on into the third quarter with the Top Runner projects, PV Poverty Alleviation projects, and DG projects generating stable demand, which is expected to continue throughout the rest of the year,” Chen added.
China is expected to remain the company’s largest market, also in the long-term. On the other hand, market uncertainties continue to exist for the U.S. due to the Section 201 investigations. Jinko Solar still wants to remain active in the USA and does not believe that these uncertainties may negatively impact its long-term growth forecast for this market. In addition, the demand in some emerging photovoltaic markets such as India, Mexico, Argentina, Brazil, Egypt and Jordan continues to grow, the company said.
Jinko Solar is also continuing to expand its production of mono-wafers and PERC solar cells. In the mass production of its wafers, Jinko Solar is now using diamond wire saws combined with black silicon cell technology. The technical focus remains on efficiency and cost, Chen said. Just a few days ago, the Chinese photovoltaic manufacturer and Heraeus signed a new strategic partnership to further develop cell technology together.
Looking to the second half of the year, Chen explained that the order books were still well filled. Jinko Solar are already taking orders for the next year. The average selling price will remain stable in the second half of the year, according to his expectation. Therefore, the focus of Jinko Solar will be increasing profitability. As for the third quarter, the company said it expects to ship between 2.1 GW and 2.3 GW of modules. For full fiscal year, Jinko Solar forectast it will deliver 8.5 to 9.0 GW.
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