JinkoSolar guides module shipments ahead of capacity

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email

Despite reporting a full-year loss of around US$248 million, JinkoSolar guided module shipments in 2013 to exceed its nameplate capacity of 1.2GW.

Like other Chinese tier 1 module manufacturers, JinkoSolar is refraining from adding new capacity, despite the growth in demand as cash preservation remains a key goal after heavy losses in 2012.

The company reported fourth quarter sales of US$187.3 million, a decrease of 12.2% from the third quarter of 2012.

Total solar product shipments were 301.9MW, consisting of 252.3MW of modules, 25.3MW of silicon wafers and 24.3MW of solar cells, representing a decrease of 9.9% from 335.2MW in the third quarter of 2012. 

However, in the fourth quarter, JinkoSolar continued to be impacted by declining ASPs, as well as reduced earnings from module sales to Chinese state-owned enterprises due to sales contracts with ‘retainage’ terms. JinkoSolar noted that these customers were allowed to withhold payment of 5% to 10% of the full contract price for between one to two years, typically.

As a result, the company revised its total revenue for the third quarter of 2012 to RMB1.33 billion by deferring RMB59.8 million from the retainage contracts. The total amount not recognised as revenue were RMB59.8 million and RMB62.0 million for the quarters ended 30 September 2012 and 31 December 2012, respectively.

Gross margin was a positive 3.8%, down from 5.8% in the third quarter of 2012. Loss from operations was US$117.8 million in the fourth quarter.

The company noted that inventory levels were low at US$84.7 million as of December 31, 2012, a decrease of approximately US$50.9 million from September 30, 2012.

Kangping Chen, JinkoSolar's chief executive officer said: “As the European economies continue to struggle, we are focused on diversifying our presence in emerging solar markets such as China, Japan, the United States, South Africa and India. Although we entered the Japanese market relatively late, we have established a considerable market presence and become a serious competitor in the market. With more than 100MW worth of shipments to Japan already signed, we are confident about future opportunities as we adjust our strategy to Japan's rapidly maturing market. We also expect the United States market to account for a large portion of the global growth in the coming year. Having adjusted our strategy to accommodate the AD/CVD tariffs, the United States' market is poised to contribute a considerable portion of our growth.”

2012 results

JinkoSolar reported total solar product shipments in 2012 of 1,188.3MW, consisting of 912.4MW of solar modules, 197.4MW of silicon wafers and 78.5MW of solar cells, an increase of 25.0% from 950.5MW for the whole of 2011.


JinkoSolar retained wafer, cell and module capacity at 1.2GW each in 2012. However, the company said it had reduced manufacturing costs each quarter, resulting in non-silicon costs of US$0.45/W in the fourth quarter of 2012, compared to US$0.58/W in the first quarter of 2012. Total cost per watt fell from US$0.74 in the first quarter of 2012 to US$0.54/W in the fourth quarter.

Management said in a conference call to discuss financial results that it expected non-silicon costs to fall at a lower rate than in 2012 with around US$0.04 to US$0.05 cost reduction by the end of 2013. Total costs are expected be around US$0.52/W to US$0.53/W.

With management guiding module shipments of between 1.2GW and 1.5GW for 2013, JinkSolar said it would outsource module production as required, noting in the call that excess production capacity still existed in China which could be tapped to meet guidance.

In the first quarter of 2013, JinkoSolar said that it expected total solar module shipments to be approximately 270MW to 300MW.

20 October 2021
Utility-scale solar is evolving, shaped by higher power modules and demand for increasingly lower levelised cost of electricity (LCOE). Those trends are also changing project requirements elsewhere, with inverters capable of delivering high power density and power capacity in strong demand. In this webinar, FIMER will detail how its innovative high-power, multi-MPPT string inverter and modular conversion solution can both meet those demands and transform the utility-scale solar sector for the better.
20 October 2021
The race is on but we need to sprint… With global climate talks fast approaching and time running out to prevent the most disastrous impacts of climate change, now is the time to act. The Summit will explore the opportunities that emerge from taking action on climate change and provide a clear pathway forward for governments, citizens and companies. Taking place just 10 days before the G20 meeting in Rome, on 30-31 of October, and in the lead up to the critical COP26 meeting in Glasgow from 31 October–12 November, this event will be instrumental in influencing ambitious global action.
10 November 2021
The solar tracker market continues to mature at breakneck speed, with designs and component selections becoming ever-more complex in the pursuit of better project economics. But a more simplistic design could deliver a triple benefit of lower Capex, EPC and Opex costs. This webinar will set out the ideal single axis tracker design for utility-scale solar farms. The design leapfrogs from decades of experience, with a comprehensive understanding and attention to the three cost structures of Capex, EPC and Opx. Sun and Steel Solar has prototyped a single axis tracker designed to deliver up to US$0.03/W in real savings compared to existing single axis trackers on the market. That’s US$30 million for every gigawatt deployed.
15 November 2021
The 10th edition of the famous Metallization and Interconnection Workshop, MIW2021, will take place in the Thor Central venue in Genk, Belgium, on Monday, November 15, and Tuesday, November 16, 2021 as a face-to-face meeting. We are longing for direct exchange of knowledge and ideas after a long time. Hopefully you can be part of it! But of course, the organizors will keep an eye on the evolution of the Covid pandemic. It will be assess carefully, whether the workshop can be held without major risks or excessive restrictions. We are looking forward to exciting talks, discussions and meetings and to welcoming you in Genk!
23 November 2021
The solar, storage and EV industries in the UK are going from strength to strength. There is no better place for the community to meet, share ideas and do business than Solar & Storage Live from 23-25 November at the NEC.There’s something for everyone; more than 150 exhibitors, a high-level conference, a start up and innovation zone, a poster zone, strategic partners to network with and much more. 
1 December 2021
Understand fully the technical and logistical supply chains that determine the production and performance of solar modules, including all related factors impacting quality, reliability & bankability. This event will be run online with streamed content, access to session recordings and chat/messaging tools for delegates to connect.

Read Next

October 19, 2021
Funds managed by private equity firm Antin Infrastructure Partners have secured a deal to acquire a majority stake in US solar and storage developer Origis Energy.
October 19, 2021
Lightsource bp has announced its entry into Poland’s solar market through a co-development deal which will see the developer proceed with a 757MWp pipeline in the country.
October 19, 2021
Shortlisted bids in Saudi Arabia’s latest solar tender have jumped significantly on the lowest price recorded in the country’s previous renewables programme, reflecting the hikes in PV equipment costs in recent months.
October 19, 2021
The White House has said renewables are still key to its budget reconciliation bill despite rumours of the investment tax credit (ITC) being modified as opposition to the bill by senators Manchin and Sinema continue
October 19, 2021
Europe's energy crisis can be a boon for renewables deployment on the continent by bolstering business cases, but familiar foes such as grid constraints will still need to be hurdled in the coming years.
October 19, 2021
Solar tracker manufacturer Soltec has signed a framework agreement with renewables developer Acciona Energia to supply trackers over a three-year period.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
November 10, 2021
8am (PST) | 5pm (CET)
Solar Media Events
December 1, 2021