Both Revenue and Shipment Growth Are Not as Good as Longi, JinkoSolar Intends to Split Back to A

A few days ago, JinkoSolar announced its fourth quarter and full-year financial report for 2020.

According to the financial report, JinkoSolar’s module shipments in 2020 were 18.771GW, a year-on-year increase of 31.4%; total revenue reached 5.38 billion U.S. dollars (about 35.27 billion yuan), a year-on-year increase of 18.1%. Achieved both solar modules and revenue growth, with outstanding results.

As a leading photovoltaic company, JinkoSolar has profound knowledge in solar monocrystalline silicon wafers, high-efficiency solar cells and solar modules, and has strong vertical integration capabilities. In 2010, JinkoSolar was listed on the U.S. stock market. After obtaining capital, it entered a rapid development path, and its production capacity and sales continued to increase.

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In 2016, JinkoSolar reached the top module shipment champion for the first time, and it continued into 2019, until it was overtaken by Longi in 2020. In this regard, OFweek Solar Photovoltaic Network believes that JinkoSolar is mainly missing the Chinese market where new installed capacity will increase by 60% year-on-year in 2020.

JinkoSolar also announced in 2020 that the board of directors has approved its subsidiary Jiangxi Jinko’s strategic plan to enter the Chinese capital market. This move will provide a strong impetus for JinkoSolar’s business development. According to industry insiders, as photovoltaics enter the era of parity, my country’s newly installed photovoltaic capacity will remain at 50-70GW during the “14th Five-Year Plan” period, making greater contributions to achieving the goal of carbon neutrality.

If JinkoSolar can obtain higher revenue in the Chinese market, it will definitely help the company’s performance. However, compared to LONGi, which is “downstream” from the leader in silicon wafers, JinkoSolar has achieved double growth in solar modules and revenue, but according to its production capacity plan, the production capacity of solar modules is higher than that of silicon wafers and solar cells. Production capacity, so it may be necessary to purchase silicon wafers and solar cells in the future, which will affect its gross profit margin.

In terms of profit, JinkoSolar’s 2020 gross profit was USD 945.8 million (approximately RMB 6.2 billion), a year-on-year increase of 13.6%. The performance forecast released by Longi shows that the company’s net profit for 2020 is 8.2 billion to 8.6 billion yuan, an increase of 55.30% to 62.88% year-on-year, which is significantly higher than that of JinkoSolar.

Therefore, although JinkoSolar has achieved good results in 2020 and has performed very well in other major photovoltaic markets around the world, its current profits and solar module shipments are not as good as LONGi’s. It wants to rely on the Chinese market to achieve overtake. It is necessary to actively extend the upstream and downstream industrial chain to increase revenue and reduce costs, and achieve profit growth.

Posted by Carrie Wong | WSL Solar

WSL Solar has been a quality and professional manufacturer of custom solar panel and solar solution provider in China since 2006.

https://www.wsl-solar.com

Source from: https://www.wsl-solar.com/Industry_News/2021/0414/JinkoSolar-2021.html

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WSL Solar

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