Jinko Solar Q2 Results-Revenues Down 21.6%, Profits Slump 44%

JinkoSolar Holding Co., Ltd., one of the largest solar module manufacturers in the world, has announced its unaudited financial results for the second quarter ended June 30, 2024.

Second Quarter 2024 Business Highlights

• Module shipments grew by 34.1% year-over-year to 23.8 GW in the second quarter, ranking first in the industry.
• At the end of the second quarter, Jinko became the first module manufacturer in the world to have delivered a total of 260 GW solar modules, covering nearly 200 countries and regions.
• Its N-type TOPCon based perovskite tandem solar cell set a new record with conversion efficiency of 33.24%, a significant leap beyond the previous record of 32.33% for the same type of tandem cells.
• The mass production efficiency of N-type TOPCon cells exceeds 26.1%.
• Jinko entered into a strategic partnership with Renewable Energy Localization Company and Vision Industries Company to form a joint venture in Saudi Arabia for the production of 10 GW of high-efficiency solar cells and solar modules.

Second Quarter 2024 Operational and Financial Highlights

• Quarterly shipments were 25,318 MW (23,822 MW for solar modules, and 1,496 MW for cells and wafers), up 15.6% sequentially, and up 36.0% year-over-year.
• Total revenues were RMB24.05 billion (US$3.31 billion), up 4.4% sequentially and down 21.6% year-over-year.
• Gross profit was RMB2.68 billion (US$368.3 million), down 2.1% sequentially and down 44.0% year-over-year.
• Gross margin was 11.1%, compared with 11.9% in Q1 2024 and 15.6% in Q2 2023.

Xiande Li, JinkoSolar’s Chairman and Chief Executive Officer, commented, “We are pleased to announce that our module shipments grew by 34.1% year-over-year to 23.8 GW in the second quarter, ranking first in the industry. By the end of the second quarter, we became the first solar company in the world to have reached accumulative module shipments of 260 GW, covering nearly 200 countries and regions. This again demonstrated the strength of our globalization strategy. Prices in several segments of the industry chain declined slightly on a sequential basis leading us to adjust our production scheduling strategy and utilization rates for different processes. Gross margin was 11.1% in this quarter, relatively flat sequentially. Adjusted net income was $52.1 million, a slight decrease sequentially.

Overall, global demand showed fast growth momentum in the first half of 2024. The newly added installations in China totaled 102.4 GW (123 GW by July end), up 30.7% year-over-year while total solar module exports increased by around 20% year-over-year. Jinko claim that visibility for its order book for 2024 exceeds 80%, enabling it to maintain an industry-leading utilization rate, particularly nearly 100% for N-type cells.

The company asserted that sustained low prices have forced some manufacturers to cut or suspend production while others have delayed, suspended or even canceled capacity expansion projects. The firm believes this will pave the way for companies with robust sustainable operations to reinforce their industry leadership.

Jinko has guided for module shipments to be between 100.0 GW and 110.0 GW for full year 2024. The firm  expect module shipments to be between 23.0 GW and 25.0 GW for the third quarter of 2024.

Loss/Income from Operations and Operating Margin

Loss from operations in the second quarter of 2024 was RMB1.14 billion (US$156.6 million), compared with loss from operations of RMB339.6 million in the first quarter of 2024 and income from operations of RMB1.54 billion in the second quarter of 2023. The sequential increase in loss from operations was mainly due to the increase in operating expenses in the second quarter of 2024.The change from income from operations in the second quarter of 2023 to loss from operations in the second quarter of 2024 was primarily attributable to the decreases in revenues and gross margin in the second quarter of 2024.

Operating loss margin was 4.7% in the second quarter of 2024, compared with operating loss margin of 1.5% in the first quarter of 2024 and operating profit margin of 5.0% in the second quarter of 2023.

Second Quarter 2024 Operational Highlights

Solar Module, Cell and Wafer Shipments

Total shipments were 25,318 MW in the second quarter of 2024, including 23,822 MW for solar module shipments and 1,496 MW for cell and wafer shipments.

Solar Products Production Capacity

The Company expects its annual production capacity for mono wafer, solar cell and solar module to reach 120.0 GW, 95.0 GW and 130.0 GW, respectively, by the end of 2024.