JinkoSolar expects coronavirus to impact business in first quarter

JinkoSolar in Asia

JinkoSolar has revealed the spread of coronavirus outbreak will impact its business in the first quarter of 2020.
JinkoSolar in AsiaJinkoSolar announced its results for the fourth quarter and full year ended December 31, 2019.

Fourth Quarter 2019

JinkoSolar said its solar module shipments were 4,538 MW, an increase of 36.4 percent from 3,326 MW in the third quarter of 2019 and 25.4 percent from 3,618 MW in the fourth quarter of 2018.

JinkoSolar said its fourth quarter revenues were RMB9.53 billion or $1.37 billion, an increase of 27.4 percent from the third quarter of 2019 and 23.4 percent from the fourth quarter of 2018.

Full Year 2019

JinkoSolar said its solar module shipments were 14.3 GW (including 64 MW to be used in the company’s overseas downstream solar projects, an increase of 25.6 percent from 11.4 GW for full year 2018.

JinkoSolar said its revenues were RMB29.75 billion or $4.27 billion, an increase of 18.8 percent from RMB25.04 billion for full year 2018.

Kangping Chen, chief executive officer of JinkoSolar, said: “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.”

The company believes 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 percent 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 percent year-over-year.

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.

JinkoSolar said its supply chain and logistics were temporarily affected by the outbreak early in the first quarter of 2020 but has improved significantly. Its current capacity utilization rate has already recovered to 100 percent.

JinkoSolar estimates 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.