Chinese solar module manufacturer JinkoSolar Holding Co Ltd reported a significant 53.3% year-over-year increase in module shipments, reaching 19.99 GW in the first quarter of 2024. However, despite this surge in shipments, profitability was impacted by declines in the average selling price.
In financial terms, the company recorded revenues of CNY 23.04 billion, representing a 1.2% decrease year-over-year and a notable 29.8% decline quarter-over-quarter. Gross margin experienced a drop to 11.9%, down from 17.3% compared to the previous year and remaining relatively unchanged from the fourth quarter of 2023 at 12.5%.
JinkoSolar reported an operating loss of CNY 339.6 million, a significant downturn from the profit of CNY 1.21 billion recorded a year ago and CNY 352.5 million in the fourth quarter of 2023. Despite this, the company still achieved a net profit of CNY 609.4 million, partially supported by the disposition of a wholly-owned subsidiary during the first quarter of 2024.
Chairman and Chief Executive Xiande Li emphasized the company's industry-leading position in terms of solar module shipments, which exceeded its guidance and saw N-type shipments accounting for nearly 80% of the volume.
Li commented on the challenges faced by the industry, noting, “Module prices continued to fall in the first quarter. While the industry average utilization rate declined sharply, we maintained our leading utilization rate at high level, leading the industry.” He also remarked on the stability of module prices in the face of declining polysilicon prices and increased material costs.
Looking ahead, Li anticipates short-term profitability challenges for integrated solar companies and expects industry-wide production capacity to contract as weaker players are phased out. JinkoSolar provided guidance for module shipments of between 24 GW and 26 GW in the second quarter and between 100 GW and 110 GW for the full year. Additionally, the company aims to increase its annual production capacity for mono wafers, solar cells, and solar modules to 120 GW, 110 GW, and 130 GW respectively by the end of 2024.
