Decrease in Solar Module Shipments Pull Jinko’s Revenue Down by 6% YoY in Q2 2021

The company's net revenue stood at $1.23 billion in Q2 2021, a 6.2% YoY decrease

September 17, 2021


Chinese solar module and cell manufacturer JinkoSolar has reported a 6.2% year-over-year (YoY) decline in its total revenue for the second quarter (Q2) of 2021.

The total revenue declined to RMB 7.93 billion (~$1.23 billion) in Q2 2021 from RMB 8.45 billion (~$1.31 billion) in the same period last year. The revenues were reportedly affected by the decrease in the shipment of solar modules.

The gross margin in Q2 2021 was 17.1%, compared to 17.9% in the same period last year. The company attributed the fall to a decrease in the average selling price of solar modules in response to the intensified global market competition.

In the first half (1H) of 2021, the company’s revenue was RMB 15.87 billion (~$2.46 billion), a 6% decrease compared to RMB 16.88 billion (~$2.62 billion) in 1H 2020.

The total module shipment in Q2 2021 stood at 3,976 MW. Its cell and wafer shipments were 1,227 MW in Q2 2021. The company’s in-house annual mono wafer, solar cell, and solar module production capacity was 27 GW, 12 GW, and 31 GW, respectively, as of June 30, 2021.

The company’s net profit stood at RMB 166.8 million (~$25.8 million) in Q2 2021, a 51.64% decrease compared to RMB 344.96 million (~$53.5 million) in the same period last year.

In 1H 2021, the net profit declined 31.88% to RMB 436.71 million (~$67.7 million) from RMB 641.13 million (~$99.4 million) in 1H 2020.

In Q2 2021, the company recorded a net exchange loss of RMB 4.4 million (~$682,360) due to the US dollar’s exchange rate fluctuation against the RMB.

Jinko has added 7 GW of new capacity of large-size cells to cater to the growing demand.

In June 2021, JinkoSolar announced that its holding subsidiary, Shangrao JinkoSolar Industry Development, invested RMB315 million (~$48.64 million) in Inner Mongolia Xinte Silicon Materials Company – a wholly-owned subsidiary of Xinte Energy Company. The company plans to utilize the funds for a high-purity polysilicon production line with an annual capacity of 100,000 tons.

JinkoSolar has signed a strategic five-year polysilicon supply agreement with Wacker Chemie AG. Wacker will supply polysilicon to JinkoSolar from its production sites in Germany and the United States.

According to the company’s forecasts, its total shipment will be between 5 GW and 5.5 GW for Q3 2021, including solar module shipment in the range of 4.5 GW to 5 GW. For Q3 2021, the company expects the total revenue to be in the range of $1.24 billion to $1.37 billion.

The company estimates shipments in the Chinese market to increase in the second half of 2021 and 2022. Its large-scale products will account for 50% of total solar module shipments in the second half of 2021. It will also supply silicon wafers to its cell and module facilities in the United States and Malaysia in 2022 as its 7GW silicon wafer production facility in Vietnam starts construction.

The company expects the total shipment to be between 25 GW and 30 GW in 2021. Its annual mono wafer, solar cell, and solar module production capacity will likely reach 32.5 GW, 24 GW, and 45 GW, respectively, by the end of 2021.

JinkoSolar’s Chairman of the Board of Directors and Chief Executive Officer Xinade Li said, “As prices along the supply chain remain high but relatively stable, we see overall acceptance of price increase continuing well into the second half of the year. Demand for modules is resuming, and our module production volume increased month-over-month in the third quarter.”

According to Mercom’s India Solar Market Leaderboard 2021, JinkoSolar was among India’s top three module suppliers with an 11% market share.


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