JinkoSolar is on track to end the year with 70GW of solar module manufacturing capacity after posting better-than-expected results for the third quarter.
The company’s total solar shipments during Q3 2022 more than doubled year-over-year to 10.9GW – comprising 10,286 MW for solar modules, and 570 MW for cells and wafers – above its previous guidance, with shipments to China jumping five-fold.
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“We are pleased to announce better-than-expected results for this quarter despite continued rises in raw material prices, power rationing measures imposed on our manufacturing facilities and an earthquake in Sichuan Province, where one of our manufacturing facilities is based,” said Xiande Li, CEO at JinkoSolar.
Shipments for n-type modules were approximately 3GW in Q3, an increase of nearly 160% sequentially that JinkoSolar said was a result of capacity release and higher client acceptance.
The company’s gross margin jumped from 15.1% in Q3 2021 to 15.7% in the most recent quarter, an increase that was mainly thanks to the rise in shipments of n-type modules, which have a higher gross margin.
Xiande Li said that the company’s mass-produced production line for TOPCon cells reached full capacity of 16GW, mass-produced efficiency for TOPCon cells reached 25% and that the company is narrowing the gap in integrated costs between n-type and p-type.
It was also revealed that the second phase of 11GW of TOPCon cell capacity at the company’s manufacturing facility in Jianshan, China, which commenced construction in Q3, is expected to start production by the end of the year.
More solar module shipments allowed JinkoSolar to increase Q3 revenues 127.8% year-on-year to RMB19.52 billion (US$2.74 billion), while gross profit was RMB3.07 billion, a 137% rise.
China, Europe and emerging markets contributed to “remarkable” growth for JinkoSolar, said chief marketing officer, Gener Miao, during a conference call with investors.
As a response to market demand, JinkoSolar has scaled up its capacity expansion plans for solar wafers and modules as it bids to reach 65GW and 70GW of manufacturing capacity, respectively, by the end of the year. A target of reaching 55GW of cell production remains unchanged.
The company expects Q4 2022 solar module shipments to be 13-15GW, while full-year shipments are forecasted to be 41.5-43.5GW, a notable rise on the 22.2GW shipped in 2021.
In terms of additional capacity expansions overseas, Gener Miao said the company is awaiting full details of the US’s Inflation Reduction Act before making any decision on new production plans in the country, adding: “It’s possible we expand our module capacity in the United States, but at this stage we are still in the evaluation stage.”
The company opened a 400MW module assembly plant in Florida back in 2018.
Conference call transcript from Seeking Alpha.