Nov. 18, 2013 - JinkoSolar today announced its unaudited financial results for the third quarter ended September 30, 2013.
Third Quarter 2013 Highlights
Total solar product shipments were 518.9 megawatts ("MW"), consisting of 489.3MW of solar modules, 10.9MW of silicon wafers and 18.7MW of solar cells. This represents an increase of 6.1% from 489.2MW in the second quarter of 2013 and an increase of 54.8% from 335.2MW in the third quarter of 2012.
As of September 30, 2013, the Company has completed 105MW worth of solar projects and expects additional 108MW to be completed in the fourth quarter.
Total revenues were RMB1.96 billion (US$320.7 million), representing an increase of 11.2% from the second quarter of 2013 and an increase of 47.6% from the third quarter of 2012.
Electricity revenues generated from solar projects were RMB39.9 million (US$6.5 million), representing an increase of 717.8% from the second quarter of 2013.
Gross margin was 22.3%, compared with 17.7% in the second quarter of 2013 and 5.8% in the third quarter of 2012.
Income from operations was RMB244.3 million (US$39.9 million), compared with income from operations of RMB155.8 million in the second quarter of 2013 and a loss from operations ofRMB111.3 million in the third quarter of 2012.
Net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders was RMB103.5 million (US$16.9 million), compared with a net income attributable to JinkoSolar Holding Co., Ltd.'sordinary shareholders of RMB49.0 million in the second quarter of 2013 and a net loss attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders of RMB114.5 million in the third quarter of 2012.
Diluted earnings per American depositary share ("ADS") was RMB4.40 (US$0.72), compared with a diluted earnings per ADS of RMB2.20 in the second quarter of 2013 and a diluted loss per ADS of RMB5.16 in the third quarter of 2012. Each ADS represents four ordinary shares.
Cash flow from operating activities was RMB780.4 million (US$127.5 million).
Non-GAAP net income1 attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders in the third quarter of 2013 was RMB196.9 million (US$32.2 million), compared with a non-GAAP net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders of RMB74.3 million in the second quarter of 2013 and a non-GAAP net loss attributable to JinkoSolar Holding Co., Ltd.'sordinary shareholders of RMB87.6 million in the third quarter of 2012.
Non-GAAP basic and diluted earnings per ADS were RMB8.72 (US$1.44) and RMB8.40 (US$1.36), respectively in the third quarter of 2013.
"I am very proud to report JinkoSolar's second consecutive quarter of profitability following robust quarter-over-quarter growth in revenue, module shipments, and gross margins," commented Mr.Kangping Chen, JinkoSolar's Chief Executive Officer. "We have picked up considerable momentum from the strategic investments we made during the downturn. During that time, we successfully penetrated new markets, broadened our geographic reach, and expanded our downstream business, which has already resulted in net profitability for the entire year, a goal we initially set for ourselves to complete by the end of 2013. We now look forward to closing out the year on an even stronger footing. JinkoSolar is now solidly among the leading global solar PV companies with gross margins that have steadily improved to 22.3% thanks to our leading cost structure, improving global ASPs and growing profits from solar projects. I believe our strong operational and financial performance demonstrates management's effectiveness and ability to execute its strategy. Having regained profitability for a second quarter, and having achieved net profitability for the entire year a quarter ahead of schedule, we are now devoting our substantial resources and attention towards growing our core PV business and to rapidly expanding our downstream business."
"The follow-on public offering of 4,370,000 ADSs we issued during the quarter is another vote of confidence by the market in our future and the direction we are headed. We raised approximatelyUS$67.8 million to further improve our working capital and cash reserves and are eager to put the cash to work. The capital will be used to supplement our working capital and invested into one of the most exciting business segments: our downstream solar projects."
"Our transformation from a traditional manufacturer to a one-stop energy solution provider is truly an exciting business and I am very optimistic about the opportunities this will bring. We have already connected 105MW to the grid so far and are focused on connecting another 108MW during the fourth quarter of 2013. This will be followed by an additional 300MW earmarked to be connected by the end of 2014 with the support of financial partners such as China Development Bank, as we plan to focus more on distributed PV systems. The Chinese government recently increased its solar installation target for 2014 by 20% to 12GW, a clear commitment towards renewable energy that is expected to result in increased demand for both solar farms and distributed PV systems. Our pipeline now includes 700MW in utility scale projects and more than 400MW for distributed systems, putting JinkoSolar in a unique position to benefit greatly as this market grows. While still in its early stages, this growing revenue stream is currently generating revenues from power sales and services related to solar power projects. This quarter we recognized meaningful electricity revenue for the first time, accounting for approximately RMB 40 million in revenue from our downstream business where gross margins and net profit margins exceed 60% and 30%, respectively. With the number and scale of our projects growing rapidly, we expect that this revenue stream will contribute meaningfully to our profit in the future."
"Our state-of-the-art products continue to lead the global PV industry in terms of technology and efficiency. During the quarter, we completed preliminary research on an advanced version of our 'Eagle' series of modules which we call 'Eagle +'. These new modules continue the tradition set by earlier 'Eagle' modules by being certified PID free, but with higher power output and lighter in weight, making them ideal for rooftop installations and extreme weather geographies. JinkoSolar's multicrystalline cells have now achieved conversion efficiency of 18.5% in lab tests. With this technology expected to be utilized in mass production next year, these results have been confirmed by third party institutions including TUV NORD and the National PV Product Quality Inspection Center. Our "smart modules" are currently in the process of undergoing internal reliability tests following the completion of function testing earlier this year. I am very excited about the potential these "smart modules" will provide to our customers and I believe they will revolutionize the way in which solar modules are managed and optimized. With ASPs continuing to stabilize and demand for our solid portfolio of products growing, we are well situated to take full advantage of our strong relationships across the globe and constant investment into R&D to leverage our technological leadership in solar product development."
"Our exposure globally has continued to grow as we leverage our reputation to diversify our geographic presence globally. As European markets slow, we continue to seek out new opportunities in exciting solar markets such as China, Japan, US, South Africa, and India."
"In summary, with another quarter of profitability behind us, I am optimistic about the opportunities ahead of us as we confidently look towards the future. Even during the toughest times, we never lost the hope or courage we needed to push forward as one of the industry leaders. We continue to manage our business prudently, and have thus been able to adjust our vision and hone our ability to strategically execute. I believe that our industry leading technology, cost structure, steady downstream expansion and brand recognition have yielded a formula for our robust, sustainable future growth."
