Unlike competitors who incorporate into their business the selling of wafers to the free market or building and selling solar plants, JinkoSolar is a pure player in module manufacturing, only focusing on this specific value chain. Therefore, in this area, it has a significant business advantage.
JinkoSolar’s experience in catching up on wafer production in 2019 is helping the company to extend its lead over other module manufacturers in terms of both revenue and profitability. The reduced dependence on wafer outsourcing and OEM has optimized Jinko’s vertical integration and strengthened its balance sheet, as well as accelerating new product launches. Jinko is the only solar module producer to remain number one for the fourth consecutive year and has delivered an unprecedented 55GW of panels to date.
Meanwhile, Jinko’s wafer factory in Leshan, Sichuan Province, combines the size and scale to further drive down costs. During the company’s Investor Conference with analysts, its CFO, Charlie Cao, talked about the push to increase the output of the Leshan factory. “We have to really make sure that we get a very steep ramp in wafer production and continue to improve the cost,” he said. The forecast shows the cost structure moving steadily towards optimization over the next few quarters. This will enable Jinko to become even more competitive and to build on its existing head start, given the high level of technological expertise at the core of the organization, a position the company has been developing for over a decade and which has already brought substantial advantages to justify its solid track record.