JinkoSolar said it’s targeting to achieve shipments of 9-10 GW in the third quarter of 2022 and 35-40 GW in 2022.
JinkoSolar’s shipments were 10,532 MW in Q2 2022, including 10,183 MW for solar module shipments and 349 MW for cell and wafer shipments.
JinkoSolar expects its production capacity for mono wafer, solar cell and solar module to reach 60 GW, 55 GW and 65 GW, respectively, by the end of 2022.
JinkoSolar’s annual production capacity for mono wafer, solar cell and solar module was 43 GW, 42 GW and 50 GW, respectively, as of June 30, 2022.
JinkoSolar said its revenues in Q2 2022 were RMB18.84 billion ($2.81 billion), an increase of 27.6 percent from RMB14.76 billion in Q1 2022 and an increase of 137.6 percent from RMB7.93 billion in Q2 2021. The increases were mainly due to an increase in the shipment of solar modules.
JinkoSolar reported gross profit of RMB2.77 billion ($413.8 million), compared with RMB2.23 billion in Q1 2022 and RMB1.36 billion in Q2 2021.
Gross margin of JinkoSolar was 14.7 percent in Q2 2022, compared with 15.1 percent in Q1 2022 and 17.1 percent in Q2 2021. The sequential change was relatively flat and the year-over-year decrease was due to an increase in the material cost of solar modules.
JinkoSolar reported loss of RMB 289 million ($43.2 million), compared with income of RMB40.8 million in Q1 2022 and RMB356.4 million in Q2 2021. The sequential and year-over-year decreases were mainly due to an increase in disposal and impairment loss on property, plant and equipment.
Operating loss margin was 1.5 percent in Q2 2022, compared with operating profit margin of 0.3 percent in Q1 2022 and 4.5 percent in Q2 2021.
Total operating expenses were RMB3.06 billion ($457 million), an increase of 40 percent from RMB2.19 billion in Q1 2022 and an increase of 205.2 percent from RMB1 billion in Q2 2021. The increase in Opex was mainly attributable to an increase in shipping costs for solar modules an increase in disposal and impairment loss on property, plant and equipment, and an increase in share based compensations expenses in the second quarter of 2022.
JinkoSolar said total operating expenses accounted for 16.2 percent of total revenues in the second quarter of 2022, compared to 14.8 percent in the first quarter of 2022 and 12.6 percent in the second quarter of 2021.
“As polysilicon prices continued to rise, we actively worked to control internal costs through technical advancement and process improvement, partially offsetting the impact of higher upstream costs,” Xiande Li, JinkoSolar’s Chairman and CEO, said.
In the first half of 2022, Europe imported a total of 42.4GW of PV modules, a year-on-year increase of 137 percent, and China achieved solar PV installations of 30.9 GW, a year-over-year increase of 136 percent. Polysilicon prices rose, reaching a recent high of RMB310/kg, further increasing module prices. Higher module prices negatively affected project yields, causing the demand to deduce to some extent.
At the end of the quarter, 16 GW of TOPCon cell capacity reached full production with a mass-production efficiency of over 24.8 percent.
JinkoSolar started production at an additional 8 GW of N-type cell capacity in Hefei and commenced construction of another production project with 11 GW of N-type cell capacity in Haining.