JinkoSolar's Q3 results hit by lower PV module pricing

Chinese solar module manufacturer JinkoSolar Holding Co Ltd (NYSE:JKS) on Wednesday posted lower third-quarter revenues and earnings as the increased level of shipments could not offset the continuous drop in average selling prices.

Regardless of the higher shipments, the company narrowed its forecast for 2024, now expecting to ship between 90 GW and 100 GW of solar modules, rather than 100 GW-110 GW. In the fourth quarter, it anticipates shipments to range between 22.3 GW and 32.3 GW, as compared to 25.9 GW in the third quarter when their level rose by 2.3% sequentially and 14.7% year-over-year.

JinkoSolar closed the July-September trimester with revenues of CNY 24.51 billion (USD 3.44bn/EUR 3.17bn), down 23% in annual terms due to the unfavourable pricing. Total operating expenses accounted for 15.4% of the company’s revenues in the three months.

As a result of the lower revenues and rising costs, net attributable profit marked a considerable drop, coming at CNY 22.5 million, but still improved from a loss of CNY 100.7 million in the second quarter. Adjusted to exclude the impact of a change in the fair value of its convertible senior notes and long-term investments and share-based compensation expenses, net earnings stood at CNY 103.9 million.

"While earnings were under pressure across the industry during the quarter, we achieved relatively outstanding results leveraging our leading position in N-type TOPCon technology, competitive products, as well as our global sales and manufacturing networks,” said CEO Xiande Li. He added that the company will continue to focus on balancing market structure and profit margin levels, while enhancing its assets and liabilities structure.

JinkoSolar anticipates its annual production capacity for mono wafer, solar cell and solar module to reach 120 GW, 95 GW and 130 GW, respectively, by the end of 2024.

(CNY 1.0 = USD 0.140/EUR 0.129)

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