Jinko Solar Maintains Global Leadership Post Third Quarter Financial Results
JinkoSolar announced its unaudited financial results for the third quarter that ended September 30, 2018. It had a solid quarter with module shipments hitting record high of 2,953 MW, an increase of 5.7% sequentially and 24.4% year-over-year. Total revenues were RMB6.69 billion (US$974.8 million), an increase of 10.5% from the second quarter of 2018 and an increase of 4.3% from the third quarter of 2017. Gross margin was 14.9%, compared to 12.0% in the second quarter of 2018 and, 12.0% in the third quarter of 2017. Income from operations was RMB188.0 million (US$27.4 million), an increase of 98.7% from the second quarter of 2018 and an increase of 104.6% from the third quarter of 2017. For the full year 2018, the Company estimates total solar module shipments to be in the range of 11.5 GW to 11.8 GW.
Strong overseas sales, particularly impressive growth in multiple strategic markets, clearly demonstrates its market leadership and solid execution of globalization.
Turmoil gone, time for grid parity
In the past five months, solar prices dropped 30% roughly after China’s sudden policy change. On one hand, it brought down installation costs for new solar projects, particularly large, utility-scale systems, and spurred new investment opportunities in other countries. On the other hand, it hit smaller companies harder and brought them out, therefore accelerating consolidation.
After a period of turmoil first as the effects spread throughout the global supply chain, eventually, it helped solar compete with conventional power sources without the need of government support, meanwhile it spurred innovation and competition, making the industry more efficient and making the strong stronger. Ultimately, JinkoSolar set a good example.
Outlook of JinkoSolar in 2019
The current demand environment continues to be strong, despite some softness in a few spots. With a strong product portfolio and robust order pipeline, coupled with increasingly favorable grid parity environment, the company is well positioned to fuel its growth next year and years after. We continue to see strong demand for Jinkosolar’s products for most end-markets and from most geographies as customers are increasingly relying on Jinkosolar as their chosen partner in superior technology and quality.
In 2019, it is expected to further extend its competitive lead in the industry and also realize full potential capacity of Cheetah products.