JinkoSolar's Second Quarter 2024: A Mixed Bag of Growth and Challenges
September 1, 2024, 5:54 am
Location: China, Shanghai
Employees: 10001+
Founded date: 2006
Total raised: $63.23K
JinkoSolar, a titan in the solar module manufacturing world, recently unveiled its financial results for the second quarter of 2024. The numbers tell a story of growth, resilience, and challenges. The company reported a significant increase in module shipments, but the financial landscape is not without its clouds.
In the second quarter, JinkoSolar achieved a remarkable 34.1% year-over-year growth in module shipments, totaling 23.8 gigawatts (GW). This surge positions JinkoSolar as the industry leader, a beacon in a competitive market. By the end of June, the company had delivered a staggering 260 GW of solar modules across nearly 200 countries. This achievement underscores JinkoSolar's global reach and the effectiveness of its N-type TOPCon technology.
However, the financial results reveal a more complex picture. Total revenues for the quarter reached RMB 24.05 billion (approximately USD 3.31 billion), marking a 4.4% increase from the previous quarter but a sharp 21.6% decline compared to the same period last year. This drop is largely attributed to a decrease in the average selling price of solar modules, a trend that has been felt across the industry.
Gross profit for the quarter was RMB 2.68 billion (USD 368.3 million), down 2.1% sequentially and a staggering 44% year-over-year. The gross margin also took a hit, falling to 11.1% from 15.6% a year earlier. These figures indicate that while JinkoSolar is shipping more modules, the profitability of each unit is under pressure.
The net loss attributable to ordinary shareholders was RMB 100.7 million (USD 13.9 million), a stark contrast to the net income of RMB 609.4 million in the first quarter of 2024 and RMB 1.31 billion in the second quarter of 2023. This loss reflects the broader challenges facing the solar industry, including oversupply and price competition.
Despite these hurdles, JinkoSolar remains optimistic. The company’s adjusted net income, which excludes certain impacts like the recent fire at a production facility, was RMB 378.5 million (USD 52.1 million). This figure, while lower than previous quarters, suggests that the company is managing to navigate through turbulent waters.
Operationally, JinkoSolar reported a total shipment of 25,318 megawatts (MW), which includes 23,822 MW of solar modules and 1,496 MW of cells and wafers. This represents a 15.6% sequential increase and a 36% year-over-year growth. The strong demand for solar installations, particularly in China, where new installations totaled 102.4 GW, up 30.7% year-over-year, has fueled this growth.
The company’s N-type TOPCon technology continues to shine, with mass production efficiency exceeding 26.1%. Furthermore, JinkoSolar's N-type TOPCon-based perovskite tandem solar cell achieved a record conversion efficiency of 33.24%. These advancements highlight JinkoSolar's commitment to innovation and its competitive edge in the market.
In a strategic move, JinkoSolar has partnered with Renewable Energy Localization Company and Vision Industries Company to establish a joint venture in Saudi Arabia. This venture aims to produce 10 GW of high-efficiency solar cells and modules, further expanding JinkoSolar's manufacturing footprint and market presence.
However, the solar industry is not without its challenges. Oversupply and irrational pricing have led to a tightening of profit margins. Financial institutions are becoming more selective, favoring companies with proven technological innovation and solid financial health. This shift has forced some manufacturers to cut production or delay expansion plans, indicating a potential consolidation phase in the industry.
JinkoSolar's leadership remains steadfast. The company has reiterated its guidance for module shipments to be between 100.0 GW and 110.0 GW for the full year 2024. For the third quarter, it expects shipments to range between 23.0 GW and 25.0 GW. By the end of 2024, JinkoSolar aims to achieve a mass-produced N-type cell efficiency of 26.5%.
The company is also focused on optimizing its asset and liability structure to enhance cash flow and strengthen its resilience against market fluctuations. This proactive approach is crucial as the solar market continues to evolve.
In conclusion, JinkoSolar's second quarter results reflect a company at a crossroads. The growth in module shipments is a bright spot, but the financial losses and declining margins cast a shadow. As the solar industry grapples with challenges, JinkoSolar's commitment to innovation and strategic partnerships may well be the lifeline it needs to navigate the storm. The road ahead is uncertain, but with a strong foundation and a clear vision, JinkoSolar is poised to continue its journey in the renewable energy landscape.
In the second quarter, JinkoSolar achieved a remarkable 34.1% year-over-year growth in module shipments, totaling 23.8 gigawatts (GW). This surge positions JinkoSolar as the industry leader, a beacon in a competitive market. By the end of June, the company had delivered a staggering 260 GW of solar modules across nearly 200 countries. This achievement underscores JinkoSolar's global reach and the effectiveness of its N-type TOPCon technology.
However, the financial results reveal a more complex picture. Total revenues for the quarter reached RMB 24.05 billion (approximately USD 3.31 billion), marking a 4.4% increase from the previous quarter but a sharp 21.6% decline compared to the same period last year. This drop is largely attributed to a decrease in the average selling price of solar modules, a trend that has been felt across the industry.
Gross profit for the quarter was RMB 2.68 billion (USD 368.3 million), down 2.1% sequentially and a staggering 44% year-over-year. The gross margin also took a hit, falling to 11.1% from 15.6% a year earlier. These figures indicate that while JinkoSolar is shipping more modules, the profitability of each unit is under pressure.
The net loss attributable to ordinary shareholders was RMB 100.7 million (USD 13.9 million), a stark contrast to the net income of RMB 609.4 million in the first quarter of 2024 and RMB 1.31 billion in the second quarter of 2023. This loss reflects the broader challenges facing the solar industry, including oversupply and price competition.
Despite these hurdles, JinkoSolar remains optimistic. The company’s adjusted net income, which excludes certain impacts like the recent fire at a production facility, was RMB 378.5 million (USD 52.1 million). This figure, while lower than previous quarters, suggests that the company is managing to navigate through turbulent waters.
Operationally, JinkoSolar reported a total shipment of 25,318 megawatts (MW), which includes 23,822 MW of solar modules and 1,496 MW of cells and wafers. This represents a 15.6% sequential increase and a 36% year-over-year growth. The strong demand for solar installations, particularly in China, where new installations totaled 102.4 GW, up 30.7% year-over-year, has fueled this growth.
The company’s N-type TOPCon technology continues to shine, with mass production efficiency exceeding 26.1%. Furthermore, JinkoSolar's N-type TOPCon-based perovskite tandem solar cell achieved a record conversion efficiency of 33.24%. These advancements highlight JinkoSolar's commitment to innovation and its competitive edge in the market.
In a strategic move, JinkoSolar has partnered with Renewable Energy Localization Company and Vision Industries Company to establish a joint venture in Saudi Arabia. This venture aims to produce 10 GW of high-efficiency solar cells and modules, further expanding JinkoSolar's manufacturing footprint and market presence.
However, the solar industry is not without its challenges. Oversupply and irrational pricing have led to a tightening of profit margins. Financial institutions are becoming more selective, favoring companies with proven technological innovation and solid financial health. This shift has forced some manufacturers to cut production or delay expansion plans, indicating a potential consolidation phase in the industry.
JinkoSolar's leadership remains steadfast. The company has reiterated its guidance for module shipments to be between 100.0 GW and 110.0 GW for the full year 2024. For the third quarter, it expects shipments to range between 23.0 GW and 25.0 GW. By the end of 2024, JinkoSolar aims to achieve a mass-produced N-type cell efficiency of 26.5%.
The company is also focused on optimizing its asset and liability structure to enhance cash flow and strengthen its resilience against market fluctuations. This proactive approach is crucial as the solar market continues to evolve.
In conclusion, JinkoSolar's second quarter results reflect a company at a crossroads. The growth in module shipments is a bright spot, but the financial losses and declining margins cast a shadow. As the solar industry grapples with challenges, JinkoSolar's commitment to innovation and strategic partnerships may well be the lifeline it needs to navigate the storm. The road ahead is uncertain, but with a strong foundation and a clear vision, JinkoSolar is poised to continue its journey in the renewable energy landscape.