JinkoSolar Holding, a leading solar module manufacturer, reported revenues in the first quarter of 2023 were RMB23.33 billion ($3.40 billion), a decrease of 22.2 percent from RMB30 billion in Q4 2022 and an increase of 58 percent from RMB14.76 billion in the first quarter of 2022.
The sequential decrease was mainly due to a decrease in the shipment of solar modules. The year-over-year increase was mainly due to an increase in the shipment of solar modules to global markets, JinkoSolar said.
JinkoSolar said its shipments reached 14,490 MW (13,038 MW for solar modules, and 1,452 MW for cells and wafers), down 12.8 percent sequentially, and up 72.7 percent year-over-year.
JinkoSolar reported gross margin of 17.3 percent in Q1 2023, compared with 14.0 percent in Q4 2022 and 15.1 percent in the first quarter of 2022. The sequential and year-over-year increases were mainly due to a decrease in the cost of polysilicon.
JinkoSolar’s operating profit margin was 5.2 percent in Q1 2023, compared with 2 percent in Q4 2022 and 0.3 percent in the first quarter of 2022.
JinkoSolar posted operating expenses in Q1 2023 were RMB2.83 billion (412.0 million), a decrease of 21.3 percent from RMB3.59 billion in Q4 2022 and an increase of 29.4 percent from RMB2.19 billion in the first quarter of 2022.
The sequential decrease was due to a decrease in shipping costs for solar modules and a decrease in impairment loss on property, plant and equipment, and year-over-year increase was mainly attributable to an increasing loss of disposal on property, plant and equipment and an increase in demurrage charges.
JinkoSolar said total operating expenses accounted for 12.1 percent of total revenues in the first quarter of 2023, compared to 12.0 percent in the fourth quarter of 2022 and 14.8 percent in the first quarter of 2022.
JinkoSolar said the decline in polysilicon prices stimulated module demand in the first quarter. Its quarterly module shipments increased by more than 60 percent year over year, of which shipments to the Chinese market increased by more than 2 times year over year.
N-type module shipments in the first quarter were approximately 6GW; N-type modules retained a competitive premium over P-type modules.
“With polysilicon prices being volatile, we adjusted our supply chain strategy to control costs. The ratio of N-type products shipment approached nearly 50 percent of our total module shipments thanks to their high efficiency and our strong global marketing network,” Xiande Li, JinkoSolar’s Chairman and Chief Executive Officer, said.
The Chinese market benefited from falling prices of PV and delays in PV projects from 2022. The new installations of PV reached 33.7 GWac, representing an increase of 154.8 percent. The cumulative installation of PV has surpassed that of hydropower for the first time, making PV the second largest power source in China.
In addition, exports of solar cells and modules from China to overseas markets remained strong in the first quarter. Total overseas shipments of modules and cells reached $13.1 billion in the first quarter, representing an increase of 15.3 percent.