JinkoSolar Reports 31.4 % Increase in Shipments in FY20, Revenue up 18%

JinkoSolar has revealed that despite ‘extreme challenges’ it managed to bump up its annual shipments to 18.77 GW in FY 2020. The firm also ran into losses for the fourth quarter.

JinkoSolar, one of the largest solar module manufacturers in the world, has recently announced its financial results for the financial year 2020 (FY20) ended December 31, 2020. In its annual results, the firm has revealed that despite ‘extreme challenges’ it managed to bump up its annual shipments to 18.77 GW, an increase of 31.4 percent year over year (YoY), and with it increased its total revenues to USD 5.38 billion, up 18.1 percent YoY.

“2020 was a very challenging year for the solar industry as global markets were shrouded in uncertainty due to the COVID-19 pandemic. Despite difficult market conditions, we increased our global market share and captured growth opportunities thanks to our resilient network and strategic partnerships along the industry value chain. Gross margin for the fourth quarter was within our expectations and both revenues and shipments for the full year recorded significant growth compared with 2019,” said Xiande Li, JinkoSolar’s Chairman of the Board of Directors and Chief Executive Officer.

“We expect total shipments in 2021 to grow over 30 percent, to be in the range of 25 GW to 30 GW. By the end of 2021, we expect our in-house annual production capacity of monocrystalline silicon wafers, high-efficiency solar cells and modules to reach 33 GW, 27 GW and 37 GW, respectively,” he added.

According to the firm, the increase in total revenues was mainly attributable to an increase in the shipment of solar modules, which was partially offset by a decline in the average selling price of solar modules.

Further, the report detailed that the firms’ gross profit for full year 2020 was RMB 6.17 billion (USD 945.8 million), an increase of 13.6 percent from RMB 5.43 billion for full year 2019. The gross margin was 17.6 percent for full year 2020, compared with 18.3 percent for full year 2019. 

As per the firm, the year-over-year increase (besides increase in shipments and lower costs) was mainly attributable to :

(i) an increase in self-produced production volume by increasing shift toward integrated mono-based high-efficiency products capacity, and

(ii) the continued reduction of integrated production costs resulting from the Company’s industry-leading integrated cost structure.

However, excluding factors like CVD and ADD reversal benefits, gross margin was 17.1 percent for full year 2020, compared with 17.5 percent for full year 2019. The year-over-year decrease as per the firm was due to 

(i) a decline in the average selling price of solar modules due to the intensified global market competition of solar modules and 

(ii) an increase in the cost of raw materials.

“Since the fourth quarter of 2020, the mismatch between supply and demand continued to drive volatility upstream and downstream. We predict this scenario will continue into the second quarter of this year. While there are still supply shortages, there is enough polysilicon to support over 180 GW of module production and supply is sufficient in most segments of the supply chain. As global installation levels are still likely to increase this year, demand for modules will revive once market prices are stabilised,” said Li.