JinkoSolar smashes solar module shipments record

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The company also reiterated full-year 2017 shipments to be in the range of 8.5GW and 9.0GW.

The company also reiterated full-year 2017 shipments to be in the range of 8.5GW and 9.0GW.

Leading ‘Silicon Module Super League’ (SMSL) member JinkoSolar reported record PV module shipments of 2,068MW in the first quarter of 2017, exceeding guidance. 

JinkoSolar’s record quarterly shipments are also an industry milestone, becoming the first module manufacturer to ship over 2GW of modules in a quarter. However, the global quarterly shipment record is not set to last long. JinkoSolar guided second quarter shipments to be in the range of 2.5GW to 2.6GW.

JinkoSolar’s record quarterly shipments are also an industry milestone, becoming the first module manufacturer to ship over 2GW of modules in a quarter. However, the global quarterly shipment record is not set to last long. JinkoSolar guided second quarter shipments to be in the range of 2.5GW to 2.6GW.

JinkoSolar’s record quarterly shipments are also an industry milestone, becoming the first module manufacturer to ship over 2GW of modules in a quarter. However, the global quarterly shipment record is not set to last long. JinkoSolar guided second quarter shipments to be in the range of 2.5GW to 2.6GW.

Kangping Chen, JinkoSolar’s Chief Executive Officer commented, “Module shipments during the quarter hit a record high of 2,068MW, a 19.3% increase sequentially while generating US$839.3 million in revenue. We continued to capitalize on the growing recognition of JinkoSolar’s brand and high quality products and services to increase our market share and capture new opportunities during the quarter.”

The company also reiterated full-year 2017 shipments to be in the range of 8.5GW and 9.0GW.

JinkoSolar’s confidence in its full-year guidance rests with its global footprint and strength in the Chinese market. 

“Demand in China remains strong with growth momentum expected to continue into the next quarter. While the June 30 Feed-in-Tariff has created some uncertainties in China’s utility-scale market, we haven’t seen demand weaken. Our deep involvement in the Top Runner and PV Poverty Alleviation projects as well as distributed generation projects will provide strong support for demand during the second half of the year,” added Chen. 

Margin squeeze

Despite the record shipments, JinkoSolar was notably impacted by supply chain dynamics. Higher polysilicon purchase prices in the upstream and strong module ASP declines in the downstream led to further gross margin squeeze.

“Our gross margin contracted to 11.2% from 14.3% last quarter as a result of a slight decline in the average selling prices (“ASP”) of solar modules, increased silicon prices and material costs caused by a shortage of supply in the first quarter. We believe our margins have room to improve in the second quarter and throughout the second half of the year as our mono wafer and PERC cell capacity increases and polysilicon prices stabilize,” noted Chen.

Financial results

JinkoSolar reported first quarter 2017 revenue of US$839.3 million, an increase of 12.8% from US$737.6 million in the fourth quarter of 2016 and an increase of 9.4% from the first quarter of 2016. The sequential and year-over-year increases were mainly attributable to an increase in solar module shipments in the first quarter of 2017.

Gross profit in the quarter was US$94.3 million, down from US$105.1 million in the fourth quarter of 2016. The sequential and year-over-year declines were mainly attributable to a decline in the ASP of solar modules in the first quarter of 2017.

As already noted, gross margin was 11.2% in the first quarter of 2017, down compared with 14.3% in the fourth quarter of 2016 and 20.5% in the first quarter of 2016, primarily due to polysilicon purchase ASP’S and declining module ASP’s. 

Income from operations in the first quarter of 2017 was US$8.2 million, down from US$11.2 million in the previous quarter. Operating margin in the quarter was 1.0%, compared with 1.5% in the fourth quarter of 2016 and 10.0% in the first quarter of 2016.

JinkoSolar reported cash and cash equivalents of US$249.0 million at the end of the quarter, down from US$406.2 million at the end of 2016. Accounts receivables due from third parties were US$860.9 million, down from US$684.7 million at the end of the prior quarter.

The company held higher inventory in the first quarter of US$780.2 million, compared to US$644.3 million at the end of the prior quarter. JinkoSolar said the inventory build was due to strong anticipated demand during the second quarter of 2017.

Tags:
c-si manufacturing, solar cell, pv modules, monocrystalline wafer, perc

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