Chinese solar PV manufacturer Jinko Solar announced its third-quarter earnings earlier this week, revealing better than expected earnings and revenues thanks in part to a new company and industry solar module shipment record of 2.95 gigawatts (GW).
Jinko Solar announced on Monday its third-quarter financial results, revealing that it had shipped an impressive 2.953 megawatts (MW) worth of solar modules through the third quarter, an increase of 5.7% over the 2,794 MW shipped in the second quarter and an even more impressive increase of 24.4% from the 2,374 MW shipped in the third quarter of 2017. This not only represents a record for the company, but a record for the entire industry, highlighting the important growth of the global solar industry, even in what could arguably be labelled a tough year.
Total revenues for the third quarter amounted to RMB6.69 billion (US$974.8 million), an increase of 10.5% from the second quarter of 2018, an increase of 4.3% from the third quarter of 2017, and beating analyst expectations by $58 million. The company’s gross margin for the quarter was 14.9%, compared with 12.0% in the second quarter and 12.0% in the third quarter of 2017.
Net income to shareholders was RMB189.1 million (US$27.5 million) in the third quarter, and earnings per share were RMB4.84(US$0.72) in the third quarter of 2018 — though Seeking Alpha says that the company’s EPS may not be comparable to the predicted consensus.
The third quarter is welcome news for the company, given that China’s modifications to its solar policies throughout the year might have had a harder impact, if things had played out differently.
“While Chinese demand softened following the May 31 policy announcement, our business continued to grow thanks to our diverse global customer base and strong brand recognition,” said Kangping Chen, JinkoSolar’s Chief Executive Officer. “Overseas module shipments accounted for almost 80% of total shipments during the quarter which offset the impact of softened demand domestically. We are confident in our ability to further expand our market share with global demand expected to recover next year as solar energy becomes more competitive and grid parity approaches in more key markets.”
The only potential downside of Jinko Solar’s third-quarter earnings report was its decision to trim the top end of company full-year shipping guidance, from guidance it has held throughout the year of shipments between 11.5 GW to 12 GW, down to 11.5 GW to 11.8 GW — but calling that bad news is working hard to find a cloud amidst the silver linings.