JinkoSolar said its revenues fell 23.5 percent to RMB6.06 billion or $915.9 million in the second quarter of 2018 – due to a decline in the average selling price and shipment of solar modules.
Gross profit of JinkoSolar dropped to RMB727.6 million or $110.0 million from RMB656.1 million in the first quarter of 2018 and RMB834.8 million in the second quarter of 2017.
Gross margin was 12 percent in the second quarter of 2018 against 14.4 percent in the first quarter of 2018 and 10.5 percent in the second quarter of 2017.
Total operating expenses fell 15.5 percent to RMB633 million or $95.7 million primarily due to a decrease in shipping costs.
Operating expenses accounted for 10.4 percent of total revenues in the second quarter of 2018, compared to 11.6 percent in the first quarter of 2018 and 9.5 percent in the second quarter of 2017.
Total solar module shipments in the second quarter of 2018 were 2,794 MW, including 200 MW to the Company’s overseas downstream segment.
The company’s annual silicon wafer, solar cell and solar module production capacity was 9 GW, 5 GW and 9 GW, respectively.
JinkoSolar estimates solar module shipments to be in the range of 2.8 GW to 3 GW in the third quarter of 2018 and 11.5 GW to 12 GW in 2018.
The company said its business will grow in the second half despite the impact from the new policies issued by the Chinese government on May 31 as shipments to overseas markets are expected to continue growing and account for an increasing proportion of shipments.
“We expect demand from Top Runner Program, poverty alleviation projects, local government subsidies, and self-contained DG projects to continue to drive the growth in the Chinese market,” JinkoSolar CEO Kangping Chen said.
JinkoSolar is expecting demand in emerging markets such as Latin American and the Middle East and North Africa.
“The Indian solar sector will maintain its long-term growth trajectory despite the short-term impact of recently announced tariffs and will continue to explore opportunities there,” Kangping Chen said.
JinkoSolar is increasing its mono PREC cell capacity which will reach 4.2GW by the end of year. It is also investing in N type technology, especially HOT double sided cell technology.