JinkoSolar Announces First Quarter 2024 Financial Results
PR Newswire
SHANGRAO, China, April 29, 2024
SHANGRAO, China, April 29, 2024 /PRNewswire/ -- JinkoSolar Holding Co., Ltd. ("JinkoSolar" or the "Company") $(JKS)$, one of the largest and most innovative solar module manufacturers in the world, today announced its unaudited financial results for the first quarter ended March 31, 2024.
First Quarter 2024 Business Highlights
-- Leveraging our outstanding N-type technology, extensive global operation
network, and advanced integrated capacity structure, module shipments
increased 53.3% year-over-year to 19.99 GW, ranking first in the
industry.
-- N-type module shipments accounted for nearly 80% of all module shipments
globally and nearly 50% of module shipments to North America.
-- Our order book visibility for 2024 currently exceeds 70%.
-- We were recognized as a Tier 1 energy storage provider by Bloomberg New
Energy Finance (BNEF).
First Quarter 2024 Operational and Financial Highlights
-- Quarterly shipments were 21,907 MW (19,993 MW for solar modules, and
1,914 MW for cells and wafers), down 21.4% sequentially, and up 51.2%
year-over-year.
-- Total revenues were RMB23.04 billion (US$3.19 billion), down 29.8%
sequentially and down 1.2% year-over-year.
-- Gross profit was RMB2.74 billion (US$378.8 million), down 33.1%
sequentially and down 32.3% year-over-year.
-- Gross margin was 11.9%, compared with 12.5% in Q4 2023 and 17.3% in Q1
2023.
-- Net income attributable to JinkoSolar Holding Co., Ltd.'s ordinary
shareholders was RMB 609.4 million (US$84.4 million), compared with
RMB29.3 million in Q4 2023 and RMB788.7 million in Q1 2023.
-- Adjusted net income attributable to JinkoSolar Holding Co., Ltd.'s
ordinary shareholders, which excludes the impact from (i) a change in
fair value of the convertible senior notes, (ii) a change in fair value
of long-term investment, and (iii) share based compensation expenses, was
RMB470.3 million (US$65.1 million), compared with adjusted net income
attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders
RMB462.7 million in Q4 2023 and RMB836.4 million in Q1 2023.
-- Basic and diluted earnings per ordinary share were RMB2.82 (US$0.39) and
RMB1.34 (US$ 0.19), respectively. This translates into basic and diluted
earnings per ADS of RMB 11.28 (US$1.56) and RMB5.36 (US$0.74),
respectively.
Mr. Xiande Li, JinkoSolar's Chairman and Chief Executive Officer, commented, "We are pleased to announce that our module shipments grew 53.3% year-over-year to 19.99 GW in the first quarter, ranking first in the industry. Notably, N-type shipments accounted for nearly 80%, solidifying our leading position in the industry. 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. Over 70% of modules were shipped to overseas markets in the first quarter, with a significant sequential increase in the proportion of shipments to Europe and the U.S. Gross margin was 11.9%, flat sequentially. Net income was US$84.4 million, up 19.8 times sequentially. Adjusted net income to JinkoSolar Holding Co., Ltd.'s ordinary shareholders was US$65.1 million, up 1.6% sequentially.
Newly added installations in China reached 45.7 GW, an increase of 35.9% year-over-year. Module exports totaled 61.7 GW, an increase of over 20% year-over-year. The PV industry remained one of the few sectors maintaining a high growth rate, and we expect global PV demand to grow approximately 25%-30% in 2024.While polysilicon prices continued to decline in the second quarter with supply surpassing demand, module prices remained relatively stable due to increases in the cost of some materials. We expect the profitability of integrated solar companies to come under pressure in the short term, and the impact on different companies varies depending on their specific operational capabilities. As a result, we believe overall production capacity in our industry will shrink with the elimination of weaker players that lack market competitiveness, sustainable production capabilities, and the ability to regularly upgrade and iterate technology.
In responses to pressure along the industry chain, we continue to deploy new technologies to improve the mass-produced efficiency of TOPCon cells and module output while reducing costs through optimization of supply chain and production process. We are accelerating the phasing out of our P-type capacity and expect our N-type capacity to exceed 90% of total capacity by the end of 2024 and our advanced capacity structure to continue to lead the industry.
We have the largest overseas integrated capacity in the industry and continuously work to expand the global industry chain. Our 1GW N-type module capacity in the U.S. has started production and another 1GW is expected to start production in the second quarter of 2024. With the strength of our global operations and long accumulated experience in risk management, we are confident in our ability to quickly adapt to changes in international trade and continue to deliver premium products and services to our global clients.
According to the latest predictions by the International Energy Agency $(IEA)$, solar PV and wind will account for 95% of global renewable expansion and by 2028, the share of wind and solar PV in global electricity generation will double to 25%. Meanwhile, the declining cost of solar+storage will continue to improve the economics of investing in PV storage projects. We strongly believe that solar+storage will become the major model for future growth in electricity generation and are confident we will continue to lead the industry with advanced technologies and premium high-efficiency products.
We expect module shipments to be between 24.0 GW and 26.0 GW for the second quarter of 2024, and between 100.0 GW and 110.0 GW for the full year 2024, with N-type modules accounting for nearly 90% of total module shipments. We expect our annual production capacity for mono wafers, solar cells and solar modules to reach 120.0 GW, 110.0 GW and 130.0 GW, respectively, by the end of 2024. By then, we believe the mass-produced N-type cell efficiency will have reached 26.5%.
First Quarter 2024 Financial Results
Total Revenues
Total revenues in the first quarter of 2024 were RMB23.04 billion (US$3.19 billion), a decrease of 29.8% from RMB32.83 billion in the fourth quarter of 2023 and a decrease of 1.2% from RMB23.33 billion in the first quarter of 2023. The sequential decrease was mainly due to a decrease in the shipment of solar modules, and the year-over-year decrease was mainly due to a decrease in the average selling price of solar modules.
Gross Profit and Gross Margin
Gross profit in the first quarter of 2024 was RMB2.74 billion (US$378.8 million), compared with RMB4.09 billion in the fourth quarter of 2023 and RMB4.04 billion in the first quarter of 2023.
Gross margin was 11.9% in the first quarter of 2024, compared with 12.5% in the fourth quarter of 2023 and 17.3% in the first quarter of 2023. The sequential and year-over-year decreases were mainly due to the decreases in the average selling price of solar modules.
(Loss)/Income from Operations and Operating Margin
Loss from operations in the first quarter of 2024 was RMB339.6 million (US$47.0 million), compared with RMB352.5 million income from operations in the fourth quarter of 2023 and RMB1.21 billion income from operations in the first quarter of 2023. The changes were primarily attributable to the decreases in our revenues and gross margin in the first quarter of 2024.
Operating loss margin was 1.5% in the first quarter of 2024, compared with 1.1% operating profit margin in the fourth quarter of 2023 and 5.2% operating profit margin in the first quarter of 2023.
Total operating expenses in the first quarter of 2024 were RMB3.07 billion (US$425.8 million), a decrease of 17.8% from RMB3.74 billion in the fourth quarter of 2023 and an increase of 8.7% from RMB2.83 billion in the first quarter of 2023. The sequential decrease was mainly due to (i) the decrease in the shipment of solar modules and (ii) expenses in relation to settlement of a dispute with one of our customers that we recorded in the fourth quarter of 2023. The year-over-year changes were relatively flat.
Total operating expenses accounted for 13.3% of total revenues in the first quarter of 2024, compared to 11.4% in the fourth quarter of 2023 and 12.1% in the first quarter of 2023.
Interest Expenses, Net
Net interest expenses consist of interest expenses of RMB281.7 million (US$39.0 million) and interest income of RMB94.9 million (US$13.1 million) in the first quarter of 2024.
Net interest expenses decreased by 9.1% from RMB205.6 million in the fourth quarter of 2023 to RMB186.8 million (US$25.9 million) in the first quarter of 2024. The sequential change was due to an increase in interest income. Net interest expenses increased by 237.3% from RMB55.4 million in the first quarter of 2023 to RMB186.8 million (US$25.9 million) in the first quarter of 2024. The year-over-year increase was mainly due to the decrease in interest income.
Subsidy Income
Subsidy income in the first quarter of 2024 was RMB231.8 million (US$32.1 million), compared with RMB554.6 million in the fourth quarter of 2023 and RMB264.0 million in the first quarter of 2023. The sequential and year-over-year changes were mainly attributable to the changes in the cash receipt of incentives to the Company's business operations.
Exchange Gain/Loss and Change in Fair Value of Foreign Exchange Derivatives
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