Leading Chinese solar manufacturer JinkoSolar published its second-quarter earnings this week, reporting its second largest quarter ever for shipments and maintaining its mammoth shipping guidance for 2018, but managing to nevertheless still miss analyst expectations.
JinkoSolar Holding published its second-quarter earnings on Monday, and from the company’s point of view, it was nearly good news all around. The only blight on proceedings was the fact it was comparing its second quarter of 2018 to the record second quarter of 2017. The company reported total solar module shipments of 2,794 megawatts (MW) for the second quarter, including 200 MW shipped to the company’s own downstream business. This was an increase of 38.7% on the previous quarter but a decrease of 3.1% on the same quarter a year earlier.
Total revenues for the quarter were similarly impressive, reaching RMB6.06 billion ($915.9 million) for the quarter, a 32.7% increase on the previous quarter but a 23.5% decrease from the second quarter a year earlier, and marginally beating analyst expectations. This serves as a clear and present example of the large-scale trend taking place across the global solar industry of decreasing solar costs being met with increased capacity. Net income attributable to shareholders was RMB99 million ($15 million) for the quarter, and earnings per share were RMB2.512 ($0.408) per share, missing analyst expectations by $0.14 per share. As a result, company shares fell 12% off the back of the news.
“We delivered a strong quarter with module shipments hitting 2,794 MW while generating total revenue of $915.9 million,” said Kangping Chen, JinkoSolar’s Chief Executive Officer. “Leveraging our cutting-edge technologies, strong global sales network, and industry-leading cost structure, I’m confident in our ability to generate sustainable profits and growth going forward.”
Despite the market’s reaction to JinkoSolar’s second quarter, which is somewhat overblown, considering it compares so well to all the other quarters except for the second quarter of 2017, the company remains confident of its future and has maintained its mammoth guidance for the rest of the year. Specifically, JinkoSolar expects total solar module shipments for the third quarter to be in the range of 2.8 GW to 3.0 GW, while total module shipments for the full year 2018 are expected to be in the range of 11.5 GW to 12.0 GW, as reported in June.