JinkoSolar’s total turnover decreases by 6.6% in the first quarter of fiscal 21

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One of China’s largest solar module manufacturers, JinkoSolar, reported a mixed set of unaudited financial results for the first quarter ended March 31, 2021 (Q1 FY2021).

The company received total revenue in the first quarter of fiscal 2021 of 7.94 billion RMB ($ 1.21 billion), down 15.7% from the 9.42 billion RMB in the fourth. quarter of fiscal 2020 and a decrease of 6.4% from the 8.48 billion RMB in the first quarter of 2020. The sequential decrease is mainly due to a decrease in shipments of solar modules partially offset by an increase in price average sales of solar modules. The company reported gross margins of 17.1%.

The company’s gross profit in the first quarter of fiscal 2021 was also corrected to 1.36 billion RMB (US $ 207.3 million), from 1.51 billion RMB in the first quarter of fiscal year. 2020 and 1.66 billion RMB in the first quarter of 2020. With gross margin of 17.1%. in the first quarter of fiscal 2021, compared to 16.0% in the fourth quarter of fiscal 2020 and 19.5% in the first quarter of fiscal 2020.

The company’s total operating expenses in the first quarter of 2021 amounted to RMB 1.21 billion (US $ 184.6 million), an increase of 30.9% from RMB 924.2 million in first quarter of fiscal 2020.

The year-over-year increase is mainly due to an increase in the impairment charge in the first quarter of 2021 on an overseas solar power project to be divested in the amount of RMB 123.4 million. based on market quotation due to the Company’s non-compete commitment to JinkoPower Group to divest its existing solar energy projects. And second, the cancellation of a previous bad debt provision in the first quarter of 2020 when cashing in 52.5 million RMB ($ 7.4 million) based on the final judgment for the lawsuits with Wuxi Zhongcai .

As of March 31, 2021, the Company had RMB 7.04 billion (USD 1.07 billion) in cash and cash equivalents and restricted cash, compared to RMB 8.07 billion as of December 31, 2020.

Notably, in the first quarter of fiscal 2021, the company made total shipments of approximately 5,354 MW, of which 4,562 MW was for solar module shipments and 792 MW for cell and wafer shipments. While the annual internal production capacity of mono wafers, solar cells and solar modules was 22 GW, 11.5 GW (940 MW for N-type cells) and 31 GW, respectively.

The company claims that the sharp increase in the price of polysilicon has pushed up the price of modules, which has affected downstream demand in the short term. However, lower demand has kept material prices from continuing to rise, as polysilicon prices stabilize, downstream demand is expected to pick up in the second half of the year.

Mr. Xiande Li, Chairman of the Board and CEO of JinkoSolar, said, “In the first quarter of 2021, our strategy was to carefully manage our supply chain as volatility continued to increase the prices of commodities from quarter to quarter. . As macroeconomic conditions continued to increase raw material prices, we remained flexible and focused on improving manufacturing processes to ease cost pressure. “

“Given the supply chain and market conditions this year, we have adjusted our capacity expansion plan. By the end of 2021, we expect our annual internal production capacity of monocrystalline silicon wafers, high efficiency solar cells and modules to reach 30 GW, 24 GW and 32 GW, respectively, ”he said. he adds.

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