JinkoSolar Exits 2019 With RMB 898.7 Million Net Income

Coronavirus Pandemic Notwithstanding, JinkoSolar Sees 18 GW To 20 GW Solar Module Shipments In 2020 With Mono Products Comprising Almost 100% Share As Company Sails Through 2019
07:45 AM (Beijing Time) - 14. March 2020
Presentation1

From 44% share of total module shipments in 2018, JinkoSolar’s high efficiency mono products gained strongly in 2019, when it comprised 74% of total shipments. For the year 2020, when JinkoSolar expects to ship between 18 GW to 20 GW of modules, it claims almost 100% shipments will be made up of high efficiency mono products. (Source: JinkoSolar Holding Co., Ltd.)

Key Takeaways

  • JinkoSolar’s Q4/2019 module shipments grew 25.4% YoY to over 4.5 GW with revenues improving 23.4% during same period
  • Annual net income for 2019 was RMB 898.7 million as the company delivered on its shipment guidance of 14.3 GW
  • Due to COVId-19 outbreak, management has shifted around 500 MW of its shipments from Q1/2020 to Q2/2020 but the company is not really worried about the virus impacting its business so much
  • Company has reiterated its annual solar module shipment guidance of 18 GW to 20 GW

The world’s largest solar module manufacturer and supplier JinkoSolar Holding Co., Ltd. did not disappoint its fans as it reported stellar financial performance in the last quarter of 2019 and full year 2019. Management said its technological transformation towards a high-efficiency portfolio of products is now complete – it targets April 2020 as the timeline for its mono wafer production capacity to fully ramp up.

The COVID-19 outbreak did impact the delivery of certain raw materials during Q1/2020 and to deal with it JinkoSolar has postponed around 400 MW to 500 MW of its shipments to Q2/2020. However, in the meantime factories have recovered fully to 100% utilization.

Q4/2019 – growth on all fronts and 18% gross margin

JinkoSolar’s module shipments in Q4/2019 increased 25.4% over last year to 4,538 MW bringing in revenues of RMB 9.53 billion ($1.37 billion) and reflecting growth of 23.4% YoY. Gross margin for the company was 18.2% compared to 14.7% a year back. The company earned a net income of RMB 369.5 million ($53.1 million) growing RMB 114.8 million on an annual basis.

2019

With total module shipments during 2019 within the guided range at 14.3 GW, JinkoSolar improved on its 2018 shipments by 25.6%, increasing its annual revenues by 18.8% to RMB 29.75 billion ($4.27 billion). Management reported net income of RMB 898.7 million ($129.1 million) during the year, growing from RMB 406.5 million in the previous year.

Manufacturing capacity – going fully mono

At the end of 2019, JinkoSolar’s mono wafer production capacity was 11.5 GW, PERC cell capacity at 10.6 GW and module capacity at 16 GW. By the time it exits 2020, the management has guided for its mono wafer, PERC cell and module production capacity to reach 19 GW, 11 GW and 25 GW, respectively. From a 74% share of its 2019 module shipments, high-efficiency mono wafer products are anticipated to account for almost 100% in 2020, as per the company.

Guidance – up to 20 GW modules in 2018

While maintaining its full year module shipment guidance for 2020 as 18 GW to 20 GW, JinkoSolar has guided for its Q1/2020 module shipments in the range of 3.4 GW to 3.7 GW which will generate revenues of approximately $1.0 billion to $1.08 billion. Gross margin during the period is expected to be between 19% to 21%.

 

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani