PVTIME – JinkoSolar Holding Co., Ltd. ("JinkoSolar" or the
"Company") (NYSE: JKS), one of the largest and most innovative solar
module manufacturers in the world, today announced its unaudited financial
results for the fourth quarter and full year ended December 31, 2019.
Strategic Business Updates
- Technological transformation towards high-efficiency portfolio of products now complete - mono wafer production capacity expected to be fully ramped up to 18GW by April 2020.
- Record high shipments, revenue and gross profit for both the fourth quarter and full year 2019.
- Technological transformation driving margin expansion – gross margin during 2019 was 18.3% compared to 14.0% in 2018 and 11.3% in 2017.
- High-efficiency mono shipments expected to account for close to 100% of total shipments in 2020.
- Industry leading integrated production cost structure driven by advanced technology and lean production.
- Best in-class product portfolio further accentuated by the successful launch of in-house developed N-type cell and tiling ribbon module technology.
- Sale of two solar power plants with a combined capacity of 155MW in Mexico expected to close by April 2020 which will deleverage balance sheet by US$131.4 million.
- Outbreak of COVID-19 not expected to have any material adverse impact on operations; JinkoSolar reiterates full year 2020 shipment guidance and capacity expansion plans.
Fourth Quarter 2019 Operational and Financial Highlights
- Total solar module shipments were 4,538 megawatts ("MW"), within JinkoSolar's updated guidance range of 4.5 GW to 4.6 GW; an increase of 36.4% from 3,326 MW in the third quarter of 2019 and 25.4% from 3,618 MW in the fourth quarter of 2018.
- Total revenues were RMB9.53 billion (US$1.37 billion), within JinkoSolar's updated guidance range of US$1.35 billion to US$1.38 billion; an increase of 27.4% from the third quarter of 2019 and 23.4% from the fourth quarter of 2018.
- Gross margin was 18.2%, within JinkoSolar's updated guidance range of 18.0% to 20.0%, compared with 21.3% in the third quarter of 2019 and 14.7% in the fourth quarter of 2018. Excluding the Countervailing Duty ("CVD") and Anti-dumping Duty ("ADD") reversal benefits, gross margin was 18.1% in the fourth quarter of 2019, 18.5% in the third quarter of 2019 and 13.8% in the fourth quarter of 2018.
- Income from operations was RMB594.8 million (US$85.4 million), compared with RMB638.8 million in the third quarter of 2019 and RMB237.4 million in the fourth quarter of 2018.
- Net income attributable to the Company's ordinary shareholders was RMB369.5 million (US$53.1 million) in the fourth quarter of 2019, compared with RMB363.6 million in the third quarter of 2019 and RMB114.8 million in the fourth quarter of 2018.
- Diluted earnings per American depositary share ("ADS") were RMB6.68 (US$0.96) in the fourth quarter of 2019.
- Non-GAAP net income attributable to the Company's ordinary shareholders in the fourth quarter of 2019 was RMB432.2 million (US$62.1 million), compared with RMB301.2 million in the third quarter of 2019 and RMB111.8 million in the fourth quarter of 2018.
- Non-GAAP basic and diluted earnings per ADS were both RMB9.74 (US$1.40) in the fourth quarter of 2019, compared with RMB6.83 and RMB6.13 in the third quarter of 2019, respectively, and RMB2.84 for both in the fourth quarter of 2018.
Full Year 2019 Operational and Financial Highlights
- Total solar module shipments were 14.3 GW (including 64 MW to be used in the Company's overseas downstream solar projects), within JinkoSolar's updated guidance range of 14.3 GW to 14.4 GW, an increase of 25.6% from 11.4 GW for full year 2018.
- Total revenues were RMB29.75 billion (US$4.27 billion), an increase of 18.8% from RMB25.04 billion for full year 2018.
- Gross margin was 18.3%, compared with 14.0% for full year 2018. Gross margin excluding CVD and ADD reversal benefits was 17.5%, compared with 13.2% for full year 2018.
- Income from operations was RMB1.73 billion (US$248.4 million), compared with RMB644.9 million for full year 2018. Income from operations excluding CVD and ADD reversal benefits was RMB1.51 billion (US$217.0 million), compared with RMB435.5 million for full year 2018.
- Net income attributable to the Company's ordinary shareholders was RMB898.7 million (US$129.1 million), compared with RMB406.5 million for full year 2018.
- Diluted earnings per ADS was RMB19.40 (US$2.79), compared with RMB10.52 for full year 2018.
- Non-GAAP net income attributable to the Company's ordinary shareholders was RMB969.5 million (US$139.3 million), compared with RMB435.8 million for full year 2018.
- Non-GAAP basic and diluted earnings per ADS were both RMB22.90 (US$3.29), compared with RMB11.32 and RMB11.28 for full year 2018, respectively.
Mr. Kangping Chen, JinkoSolar's Chief Executive Officer commented,
"JinkoSolar's growth story continues to progress strongly and I couldn't
be prouder of our very strong performance during the quarter in which solar
module shipments, total revenue and gross profit all hit record highs. Module
shipments during the quarter were 4,538 MW, an increase of 36% sequentially and
25% year-over-year. Total revenues during the quarter were US$1.37 billion, an
increase of 27% sequentially and 23% year-over-year, while gross profit
hit US$250 million. We are benefitting from the rapid expansion of our mono
wafer production capacity during the second half of 2019 and our
industry-leading integrated cost structure, which has ideally positioned us to
drive growth throughout full year 2020 where we expect solar module shipments
to increase by approximately 35%."
"2019 marked a significant milestone in our corporate history in
which we successfully completed our transformation into the most competitive
solar manufacturer in the world. The efficient execution of our strategy
throughout the second half of the year allowed us to rapidly transition our
operations and production facilities from poly to mono while steadily
increasing the proportion of products produced through our fully integrated
manufacturing process. This allowed us to rapidly begin mass production of our
innovative solar products and distribute them to our growing customer base who
are eager to benefit from the increased efficiency of our products. We also
further refined our management processes to further optimize operational
efficiency across our business and supply chain, which significantly reduced
manufacturing costs."
"A number of emerging markets are flourishing with many of them
approaching gigawatts levels, which we believe reflects the direction the
market is headed with demand diversifying globally instead of concentrating in
a few large markets. We believe global demand in 2020 will continue its strong
growth momentum with newly added installations expected to reach 140GW to
150GW, an increase of around 20% year-over-year. New installations in Europe
doubled in 2019 while ASPs in the U.S. remained high as a result of constrained
supply. The subsidy in China for 2020 is finalized earlier in the year than was
done last year which will allow more time for project development planning and
installation and is expected to result in a higher overall completion rate. A
number of projects from 2019 will likely be delayed into 2020 which we expect
will result in total installations in China reaching 40GW to 50GW for full year
2020, an increase of about 50% year-over-year. With grid parity rapidly
approaching in many markets, the long-term growth potential of the industry is
rapidly opening up."
"The outbreak of COVID-19 across China affected certain raw materials
supply and logistics during the first quarter of 2020, causing some module
shipments be postponed to the second quarter of 2020. In response to the
outbreak, we implemented a number of initiatives to ensure business continuity,
including ensuring the safety and health of our employees and minimizing the
impact of the outbreak on production and delivery by stocking up on critical
raw materials and optimizing production and logistics. Our supply chain and
logistics were temporarily affected by the outbreak early in the first quarter
of 2020 but has improved significantly. Our current capacity utilization rate
has already recovered to 100%. We estimate that approximately 400 MW to 500MW
of our solar module shipments in the first quarter will be postponed to the
second quarter, causing shipments in the second quarter to increase
significantly. We believe our shipments and capacity expansion plans for the
full year 2020 will not be impacted by the outbreak."
"The competitiveness of products in the market today is driven by the
technologies they incorporate. We increased our investments into R&D in
2019 which resulted in our products breaking world records of cell efficiency
and module output twice in June 2019 and once in January 2020. We believe our
ability to consistently drive technological breakthroughs coupled with our
expanding production capacity for high efficiency products will continue to
drive down manufacturing costs."
Fourth Quarter 2019 Financial Results
Total Revenues
Total revenues in the fourth quarter of 2019 were RMB9.53 billion (US$1.37 billion),
an increase of 27.4% from RMB7.48 billion in the third quarter of 2019 and
an increase of 23.4% from RMB7.72 billion in the fourth quarter of 2018.
The sequential increase was mainly attributable to an increase in the shipment
of solar modules, which was partially offset by a decline in the average
selling price of solar modules. The year-over-year increase was mainly
attributable to an increase in the shipment of solar modules.
Gross Profit and Gross Margin
Gross profit in the fourth quarter of 2019 was RMB1.73 billion (US$248.5 million),
compared with RMB1.59 billion in the third quarter of 2019 and RMB1.13 billion
in the fourth quarter of 2018. The sequential increase was mainly attributable
to an increase in the shipment of solar modules. The year-over-year increase
was mainly attributable to (i) an increase in the shipment of solar
modules, (ii) an increase in self-produced production volume by increasing
shift toward integrated mono-based high-efficiency products capacity,
and (iii) the continued reduction of integrated production costs resulting
from the Company's industry-leading integrated cost structure.
Gross margin was 18.2% in the fourth quarter of 2019, compared with 21.3%
in the third quarter of 2019 and 14.7% in the fourth quarter of 2018. Excluding
the CVD and ADD reversal benefit, gross margin was 18.1 % in the fourth
quarter of 2019, compared with 18.5% in the third quarter of 2019 and 13.8% in
the fourth quarter of 2018. Excluding the impact of CVD and ADD benefits,
gross margin remained essentially flat sequentially. The year-over-year
increase was mainly attributable to (i) an increase in self-produced
production volume by increasing shift toward integrated mono-based high-efficiency
products capacity, and (ii) the continued reduction of integrated production
costs, resulting from the Company's industry-leading integrated cost structure.
Income from Operations and Operating Margin
Income from operations in the fourth quarter of 2019 was RMB594.8 million
(US$85.4 million), compared with RMB638.8 million in the third quarter of
2019 and RMB237.4 million in the fourth quarter of 2018. Operating margin
was 6.2% in the fourth quarter of 2019, compared with 8.5% in the third quarter
of 2019 and 3.1% in the fourth quarter of 2018. Excluding the CVD and
ADD reversal benefits, operating margin in the fourth quarter of 2019 was
6.2%, compared with 5.7% in the third quarter of 2019 and 2.2% in the
fourth quarter of 2018.
Total operating expenses in the fourth quarter of 2019 were RMB1.13 billion
(US$163.0 million), an increase of 18.8% from RMB955.0 million in the
third quarter of 2019 and an increase of 26.8% from RMB895.1 million in
the fourth quarter of 2018. The sequential and year-over-year
increases were mainly due to an increase in shipping costs, bad-debt
provision on accounts receivable, and impairment loss on property, plant and
equipment as a result of the Company's technology transformation in the fourth
quarter of 2019 with a total amount of RMB68.3 million.
Total operating expenses accounted for 11.9% of total revenues in the
fourth quarter of 2019, compared to 12.8% in the third quarter of 2019 and
11.6% in the fourth quarter of 2018. The sequential decrease
was primarily due to a decrease in shipping costs as a
percentage of total revenue associated with a higher percentage
of shipments to domestic market taking place in the fourth quarter of
2019.
Interest Expense, Net
Net interest expense in the fourth quarter of 2019 was RMB83.8 million (US$12.0 million),
a decrease of 11.7% from RMB94.9 million in the third quarter of 2019 and
an increase of 13.2% from RMB74.0 million in the fourth quarter of 2018.
The sequential decrease was mainly due to a decrease in interest expense
associated with discounted notes receivables in the fourth quarter of 2019. The
year-over-year increase was mainly due to (i) an increase in borrowings, (ii)
the cessation of interest capitalization on certain completed solar projects,
and (iii) issuance of additional convertible senior notes in May 2019.
Exchange (Loss)/Gain and Change in Fair Value of Foreign Exchange
Derivatives
The Company recorded a net exchange gain (including change in fair
value of foreign exchange derivatives) of RMB77.9 million (US$11.2 million)
in the fourth quarter of 2019, compared to a net exchange loss of RMB130.7 million
in the third quarter of 2019 and a net exchange loss of RMB35.1 million in
the fourth quarter of 2018. With the rapid increase in overseas orders, the
Company increased its foreign currency hedge ratio to hedge against
anticipated cash flow denominated in U.S. dollars over the next six months. The
Company recorded a gain arising from foreign exchange forward
contracts associated with the depreciation of the U.S. dollars against the
RMB in the fourth quarter of 2019.
Change in Fair Value of Interest Rate Swap
The Company entered into Interest Rate Swap agreements with several banks
for the purpose of reducing interest rate risk exposure associated with
the Company's overseas solar power projects. The Company recorded a
gain arising from change in fair value of interest rate swap of RMB24.5 million
(US$3.5 million) in the fourth quarter of 2019, compared to a loss of RMB18.1 million
in the third quarter of 2019. The gain was primarily due to an
increase in long-term interest rates in the fourth quarter of
2019. The Company did not elect to use hedge accounting for any of its
derivatives.
Change in Fair Value of Convertible Senior Notes and Call Option
The Company issued US$85.0 million of 4.5% convertible senior notes
due 2024 (the "Notes") in May 2019 and has elected to measure the
Notes at fair value. The Company recognized a loss from a change in fair value
of the Notes of RMB152.7 million (US$21.9 million) in the fourth quarter
of 2019, compared to a gain of RMB157.1 million in the third quarter of
2019. The change was primarily due to a significant increase in the
Company's stock price in the fourth quarter of 2019.
Concurrent with the issuance of the Notes in May 2019, the Company entered
into a call option transaction with an affiliate of Credit Suisse Securities (USA)
LLC. The Company accounted for the call option transaction as freestanding
derivative assets in its consolidated balance sheets, which is marked to market
during each reporting period. The Company recorded a gain from a change in fair
value of the call option of RMB85.6 million (US$12.3 million) in the
fourth quarter of 2019, compared to a loss of RMB74.2 million in the third
quarter of 2019. The change was primarily due to a significant increase in
the Company's stock price in the fourth quarter of 2019.
Equity in Income/ (Loss) of Affiliated Companies
The Company indirectly holds a 20% equity interest in Sweihan PV Power
Company P.J.S.C, a developer and operator of solar power projects in Dubai, and
accounts for its investment using the equity method. The Company also holds a
30% equity interest in Jiangsu Jinko-Tiansheng Co., Ltd, which processes and
assembles PV modules as an OEM manufacturer, and accounts for its
investments using the equity method. The Company recorded equity in
income of affiliated companies of RMB31.8 million (US$4.6 million) in
the fourth quarter of 2019, compared with a loss of RMB28.3 million in the
third quarter of 2019 and a loss of RMB25.1 million in the fourth quarter
of 2018. The gain primarily arose from change in fair value of interest
rate swap agreements purchased by Sweihan PV Power Company P.J.S.C. due to an
increase in long-term interest rates in the fourth quarter of
2019. Hedge accounting was not applied for the derivative.
Income Tax Benefit / (Expense), Net
The Company recorded an income tax expense of RMB221.0 million (US$31.7
million) in the fourth quarter of 2019, compared with an income tax expense of RMB117.2
million in the third quarter of 2019 and an income tax benefit of RMB43.5
million in the fourth quarter of 2018. The increase was mainly because (i) a
JinkoSolar's subsidiary turned a profit in 2019 and utilized corresponding
deferred tax assets recognized for tax loss carryforward, and (ii) JinkoSolar's
subsidiaries in U.S. with higher income tax rate generated higher profits in
the fourth quarter of 2019.
Net Income and Earnings per Share
Net income attributable to the Company's ordinary shareholders was RMB369.5 million
(US$53.1 million) in the fourth quarter of 2019, compared with RMB363.6 million
in the third quarter of 2019 and RMB114.8 million in the fourth quarter of
2018.
Basic and diluted earnings per ordinary share
were RMB2.08 (US$0.30) and RMB1.67 (US$0.24), respectively, during
the fourth quarter of 2019. This translates into basic and diluted earnings per
ADS of RMB8.32 (US$1.20) and RMB6.68 (US$0.96), respectively.
Non-GAAP net income attributable to the Company's ordinary shareholders in
the fourth quarter of 2019 was RMB432.2 million (US$62.1 million),
compared with RMB301.2 million in the third quarter of 2019 and RMB111.8 million
in the fourth quarter of 2018.
Non-GAAP basic and diluted earnings per ordinary share were both RMB2.43 (US$0.35),
during the fourth quarter of 2019. This translates into non-GAAP basic and
diluted earnings per ADS of RMB9.74 (US$1.40).
Financial Position
As of December 31, 2019, the Company had RMB6.23 billion (US$894.9
million) in cash and cash equivalents and restricted cash, compared with RMB3.48 billion
as of December 31, 2018.
As of December 31, 2019, the Company's accounts receivables due from third
parties were RMB5.27 billion (US$756.5 million), compared with RMB5.44 billion
as of December 31, 2018.
As of December 31, 2019, the Company's inventories were RMB5.82 billion
(US$835.8 million), compared with RMB5.74 billion as of December 31,
2018.
Receivables related to CVD and ADD reversal benefits that amounted to RMB427.8
million (US$61.5 million) were recorded as non-current assets under the line
item "Other assets - third parties" on the Company's balance sheet as
of December 31, 2019 based on the Company's latest best estimate of related
cash collection.
As of December 31, 2019, the Company's total interest-bearing debts were RMB13.41 billion
(US$1.93 billion), of which RMB2.05 billion (US$294.1 million) was related
to the Company's overseas downstream solar projects, compared with RMB9.71 billion,
of which RMB1.78 billion was related to the Company's overseas downstream solar
projects as of December 31, 2018. The increase of interest-bearing
debts was mainly due to (i) the issuance of additional convertible senior
notes, and (ii) an increase in borrowings.
In November 2019, the Company entered into an agreement to sell two solar
power plants in Mexico with a combined capacity of 155 MW to White River
Renewables, a Mexican renewable energy company. White River Renewables is
jointly sponsored by Riverstone Holdings, an energy and power-focused private
investment firm, and White Summit Capital, a Switzerland-based infrastructure
investments and asset management firm. The final closing of the transaction is
expected to be completed by April 2020. The sale of overseas power plants is
consistent with the Company's growth strategy to focus on its solar
manufacturing business.
Assets and liabilities related to these two solar power plants were
reclassified as assets/liabilities held for sale as of December 31, 2019. The
Company's balance sheet will be further strengthened by reducing RMB915.2
million (US$131.5 million) of interest-bearing debts once the transaction is
completed.
Full Year 2019 Financial Results
Total Revenues
Total revenues for full year 2019 were RMB29.75 billion (US$4.27 billion),
an increase of 18.8% from RMB25.04 billion for full year 2018. The increase in
total revenues was mainly attributable to an increase in the shipment of solar
modules, which was partially offset by a decline in the average selling price
of solar modules.
Gross Profit and Gross Margin
Gross profit for full year 2019 was RMB5.43 billion (US$780.2 million), an
increase of 54.6% from RMB3.51 billion for full year 2018. Gross margin was
18.3% for full year 2019, compared with 14.0% for full year 2018. The
year-over-year increase was mainly attributable to (i) an increase in the
shipment of solar modules in 2019, which was partially offset by a decline in
the average selling price of solar modules, (ii) an increase in self-produced
production volume by increasing shift toward integrated mono-based
high-efficiency products capacity, and (iii) the continued reduction of
integrated production costs resulting from the Company's industry-leading
integrated cost structure.
Excluding the CVD and ADD reversal benefits, gross margin was 17.5% for
full year 2019, compared with 13.2% for full year 2018. The year-over-year
increase was attributable to a decrease in solar module cost, which was
partially offset by a decline in the average selling price of solar modules.
Income from Operations and Operating Margin
Income from operations for full year 2019 was RMB1.73 billion (US$248.4
million), compared with RMB644.9 million for full year 2018. Operating margin
for full year 2019 was 5.8%, compared with 2.6% for full year 2018.
Total operating expenses for full year 2019 were RMB3.70 billion (US$531.8
million), an increase of 29.0% from RMB2.87 billion for full year 2018. As a
percentage of total revenues, operating expenses accounted for 12.4% for full
year 2019, compared with 11.5% for full year 2018. The increase in total
operating expenses was primarily due to an increase in shipping cost,
bad-debt provision on accounts receivable and impairment loss on property,
plant and equipment as a result of the Company's technology transformation in
the fourth quarter of 2019 with a total amount of RMB68.3 million.
Interest Expense, Net
Net interest expense for full year 2019 was RMB391.6 million (US$56.2
million), an increase of 32.4% from RMB295.7 million for full year 2018. The
increase was mainly due to (i) an increase in borrowings, (ii) the cessation of
interest capitalization on certain completed solar projects, and (iii) the
issuance of additional convertible senior notes in May 2019.
Exchange Loss and Change in Fair Value of Foreign Exchange Derivatives
The Company recorded a net exchange loss (including change in fair
value of foreign exchange derivatives) of RMB69.8 million (US$10.0 million)
for full year 2019 due primarily to appreciation of US dollars against RMB. The
Company recorded a net exchange loss of RMB20.1 million for full year 2018.
With the rapid increase in overseas orders, the Company increased its
foreign currency hedge ratio to hedge against anticipated cash flow denominated
in U.S. dollars over the next six months. The Company recorded a
loss arising from foreign exchange forward contracts with the appreciation
of the U.S. dollars against the RMB for full year 2019.
Change in Fair Value of Interest Rate Swap
The Company entered into Interest Rate Swap agreements with several banks
for the purpose of reducing interest rate risk exposure. The Company recorded a
loss of RMB70.0 million (US$10.1 million) arising from change in fair value of
the Interest Rate Swap agreements, compared to a gain of RMB9.7 million for
full year 2018. The year-over-year changes were primarily due to a
decrease in USD LIBOR rates. The Company did not elect to use
hedge accounting for any of its derivatives.
Change in Fair Value of Convertible Senior Notes and Call Option
The Company issued the Notes in May 2019 and has elected to measure them
at fair value. The Company recognized a loss from a change in fair value of the
Notes of RMB114.1 million (US$16.4 million) for full year 2019. The change
was primarily due to a significant increase in the Company's stock price
in 2019.
Concurrent with the issuance of the Notes in May 2019, the Company entered
into a call option transaction with an affiliate of Credit Suisse Securities (USA)
LLC. The Company accounted for the call option transaction as freestanding
derivative assets in its consolidated balance sheets, which is marked to
market at each reporting period. The Company recorded a gain from a change in
fair value of the call option of RMB84.8 million (US$12.2 million) for
full year 2019. The change was primarily due to a significant increase in
the Company's stock price in 2019.
Equity in (Loss)/Income of Affiliated Companies
The Company indirectly holds a 20% equity interest of Sweihan PV Power
Company P.J.S.C, a developer and operator of solar power projects in Dubai, and
accounts for its investments using the equity method. The Company also holds a
30% equity interest in Jiangsu Jinko-Tiansheng Co., Ltd, which processes and
assembles PV modules as an OEM manufacturer, and accounts for its
investments using the equity method. The Company recorded equity in
loss of affiliated companies of RMB48.9 million (US$7.0 million)
for full year 2019, compared with an income of RMB2.6 million
in 2018. The loss primarily arose from change in fair value of interest
rate swap agreements purchased by Sweihan PV Power Company P.J.S.C. due to a
continuous decrease in USD LIBOR rates. Hedge accounting was not applied
for the derivative.
Income Tax Expense, Net
The Company recognized an income tax expense of RMB278.0 million (US$39.9
million) for full year 2019, compared with an income tax expense of RMB4.4
million in full year 2018. The increase was mainly because (i) JinkoSolar's
subsidiary turned a profit in 2019 and utilized corresponding deferred tax
assets recognized for tax loss carryforward, and (ii) JinkoSolar's subsidiary
in U.S. with higher income tax rate generated higher profits in 2019.
Net Income and Earnings per Share
Net income attributable to the Company's ordinary shareholders for full
year 2019 was RMB898.7 million (US$129.1 million), compared with a net income
of RMB406.5 million in full year 2018.
Basic and diluted earnings per share for full year 2019 were RMB5.31 (US$0.76)
and RMB 4.85 (US$0.70), respectively. This translates into basic and diluted
earnings per ADS of RMB21.22 (US$3.05) and RMB19.40 (US$2.79),
respectively.
Non-GAAP net income for full year 2019 was RMB969.5 million (US$139.3
million), compared with non-GAAP net income of RMB435.8 million in full year
2018.
Non-GAAP basic and diluted earnings per share for full year 2019 were both
RMB5.73 (US$0.82), which translates into non-GAAP basic and diluted
earnings per ADS of both RMB22.90 (US$3.29).
Fourth Quarter and Full Year 2019 Operational Highlights
Solar Module Shipments
Total solar module shipments in the fourth quarter of 2019 were
4,538 MW.
Total solar module shipments in full year 2019 were 14.3 GW (including 64
MW to be used in the Company's overseas downstream solar projects), compared to
11.4 GW in 2018.
Solar Products Production Capacity
As of December 31, 2019, the Company's in-house annual mono wafer,
solar cell and solar module production capacity was 11.5 GW[1], 10.6
GW (9.8 GW for PERC cells and 800 MW for N type cells) and 16 GW, respectively.
| [1] In addition to the mono wafer, our multi wafer production capacity was 3.5 GW as of December 31, 2019. |
Operations and Business Outlook
Outbreak of COVID-19 not expected to have any material adverse impact on
operations; JinkoSolar reiterates full year 2020 shipment guidance and capacity
expansion plans.
First Quarter and Full Year 2020 Guidance
The Company's business outlook is based on management's current views and
estimates with respect to market conditions, production capacity, the Company's
order book and the global economic environment. This outlook is subject to
uncertainty on final customer demand and sale schedules. Management's views and
estimates are subject to change without notice.
For the first quarter of 2020, the Company expects total solar module
shipments to be in the range of 3.4 GW to 3.7 GW. Total revenue for
the first quarter is expected to be in the range of US$1.00 billion to US$1.08
billion. Gross margin for the first quarter is expected to be between 19% and
21%.
For full year 2020, the Company estimates total solar module shipments to
be in the range of 18 GW to 20 GW.
Solar Products Production Capacity
JinkoSolar expects its annual mono wafer, solar cell and solar module
production capacity to reach 19.0 GW, 11.0 GW (including 900 MW
N-type cells) and 25.0 GW, respectively, by the end of 2020.
Recent Business Developments
- In November 2019, JinkoSolar delivered to X-ELIO, a leading company dedicated to the development, construction and operation of photovoltaic plants, 950 MW of its ultra-high efficiency Cheetah 72 cells solar modules to be installed at different projects across Spain and Mexico.
- In November 2019, JinkoSolar supplied 300MW of its high energy density Tiger panels for an ultra-high voltage demonstration plant in Qinghai Province, China.
- In December 2019, JinkoSolar supplied approximately 40 MW of its ultra-high efficiency Cheetah HC 60 solar modules to Obton, one of the leading global developers and investors of photovoltaic solar energy.
- In December 2019, JinkoSolar signed an agreement with COSCO SHIPPING Lines (Greece) S.A. to use the Greek Port of Piraeus as a distribution hub for the shipment of its renewable energy products in Europe, and in particular for Greece, the Balkans and the EMEA region.
- In January 2020, JinkoSolar signed an MOU with Shanghai Institute of Space Power-Sources (SISP) to co-develop high efficiency solar cell technology for both space and terrestrial applications.
- In January 2020, the maximum conversion efficiency of JinkoSolar's bifacial solar modules reached 22.49%, breaking the previous world record and setting a new industry standard for efficiency of mass produced solar cells.
- In January 2020, Dr. Hao Jin was appointed as the Chief Technology Officer of JinkoSolar.
Conference Call Information
JinkoSolar's management will host an earnings conference call on Friday,
March 13, 2020 at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing / Hong Kong
the same day).
Dial-in details for the earnings conference call are as follows:
| Hong Kong / International: | +852 3027 6500 |
| U.S. Toll Free: | +1 855-824-5644 |
| Passcode: | 23485667# |
Please dial in 10 minutes before the call is scheduled to begin and
provide the passcode to join the call.
A telephone replay of the call will be available 2 hours after the
conclusion of the conference call through 23:59 U.S. Eastern Time, March 20,
2020. The dial-in details for the replay are as follows:
| International: | +61 2 8325 2405 |
| U.S.: | +1 646 982 0473 |
| Passcode: | 319329639# |
Additionally, a live and archived webcast of the conference call will be
available on the Investor Relations section of JinkoSolar's website at www.jinkosolar.com.
