JinkoSolar’s Latest Performance Results Show Strong Growth in Shipments and Revenue, but Operating Margin Has Been Constrained by Raw Material Costs- EnergyTrend

JinkoSolar’s Latest Performance Results Show Strong Growth in Shipments and Revenue, but Operating Margin Has Been Constrained by Raw Material Costs

2022-03-25 9:30

On March 23, JinkoSolar Holding Co. Ltd. presented its unaudited (non-GAAP) financial results for the fourth quarter of 2021 and the full 2021 as well as its guidance for the first quarter of 2022 and the full 2022. The highlights of its presentation are as follows:

Jinko’s product shipments for the fourth quarter of 2021 came to 9,693MW. Modules accounted for 9,024MW of the total, and cell and wafers accounted for 669MW of the total. The quarter-to-quarter comparison shows a growth rate of 94.1, and the year-on-year comparison shows a growth rate of 67.9%. As for the full 2021, product shipments totaled 25,242MW, of which modules accounted for 22,233MW. Compared with 2020, shipments rose by 18.4%.

Jinko’s revenue for the fourth quarter of 2021 came to USD 2.57 billion. The quarter-to-quarter comparison shows a growth rate of 91.2%, and the year-on-year comparison shows a growth rate of 73.9%. As for the full 2021, revenue totaled USD 6.41 billion. Compared with 2020, revenue rose by 16.2%.

Jinko in its presentation stated that China’s favorable policies were the main force that drove module shipments in 2020. This, in turn, contributed to revenue growth.

Regarding profitability, Jinko’s operating margin was 3.0% in the fourth quarter of 2021, up from 1.3% in the previous quarter. The operating margin for the full 2021 was 2.7%, down from 5.1% for 2020. The decline was primarily attributed to the increase in raw material costs.

Looking ahead to the first quarter of 2022, Jinko projects its product shipments (encompassing modules, cells, and wafers) will reach 7,500-8,000MW for the quarterly period. As for the full 2022, product shipments are projected to total 35,000-40,000MW.

Turning to (annual) production capacity, Jinko’s figures for mono-Si wafers, mono-Si cells, and modules came to 32,500MW, 24,000MW, and 45,000MW respectively at the end of 2021. N-type cells accounted for 940MW of the total cell production capacity. Regarding the first quarter of 2022, Jinko said that its operating production capacity for N-type cells is estimated to have reached 16,000MW. Furthermore, its mono-Si wafer plant in Vietnam has entered the production phase. The company now has almost 7,000MW of integrated manufacturing capacity (i.e., cell-wafer-module) for mono-Si products located abroad. Jinko projects that at the end of 2022, its production capacity figures for mono-Si wafers, mono-Si cells, and modules will reach around 50,000MW, 40,000MW, and 60,000MW respectively.