JinkoSolar Holding Co., Ltd.(“JinkoSolar” or the “Company”) (NYSE: JKS), a leading global solar power product manufacturer, announced its unaudited financial results for the third quarter ended September 30, 2012.
Third Quarter 2012 Highlights
• Total solar product shipments were 335.2megawatts (“MW”), of which 280.0MW were solar modules, 28.6MW were silicon wafers, and 26.6MW were solar cells. This represents an increase of 11.0% from 302.1 MW in the second quarter of 2012, and an increase of 30.1% from 257.7 MW in the third quarter of 2011.
• Total revenues were RMB1.4billion (US$221.1million), representing an increase of 12.2% from the second quarter of 2012, and a decrease of 22.0% from the third quarter of 2011.
• Gross margin was 9.9%, compared with 8.4% in the second quarter of 2012 and 3.7% in the third quarter of 2011.
• In-house gross margin [3] was 12.6%, compared with 11.2% in the second quarter of 2012 and18.4% in the third quarter of 2011.
• Loss from operations was RMB51.5million (US$8.2million), compared with a loss from operations of RMB82.5 million in the second quarter of 2012, and a loss from operations of RMB197.3 million in the third quarter of 2011.
• Net loss was RMB54.8 million (US$8.7million), compared with a net loss of RMB310.5 million in the second quarter of 2012, and net income of RMB68.1 million in the third quarter of 2011.
• Diluted loss per share was RMB0.62 (US$0.10), compared with diluted loss per share of RMB3.50 in the second quarter of 2012, and diluted loss per share of RMB2.97 in the third quarter of 2011.
• Diluted loss per American Depositary Share (“ADS”) was RMB2.48 (US$0.39), compared with diluted loss per ADS of RMB14.00 in the second quarter of 2012, and diluted loss per ADS of RMB11.88 in the third quarter of 2011. Each ADS represents four ordinary shares.
• Non-GAAP net loss [4] in the third quarter of 2012 was RMB27.8million (US$4.4million), compared with non-GAAP net loss of RMB297.6 million in the second quarter of 2012, and non-GAAP net loss of RMB247.9 million in the third quarter of 2011.
• Non-GAAP basic and diluted loss per share in the third quarter of 2012 was RMB0.31 (US$0.05).Non-GAAP basic and diluted loss per ADS was RMB1.24 (US$0.20) in the third quarter of 2012.
“We are encouraged by our strong performance this past quarter as we continue to benefit from our strategic focus on cost reduction and geographical diversification with strong sales in China compensating for weakness in our more traditional markets. We believe we have turned a corner operationally and financially despite the global economic softening as we continue to focus on our core business and work to advance our industry leading position.” stated Mr. Kangping Chen, JinkoSolar’s Chief Executive Officer. “This marks the third consecutive quarter where we effectively increased gross margin and reduced net loss as we make our way back to profitability. This was done in part, by working aggressively to maintain our industry-leading position in terms of cost structure by improving efficiency without sacrificing the quality and performance our modules are well known for.”
“We continue to deepen our relationships with customers across the globe with total module shipments of 280 MW during the third quarter of 2012. The strong momentum we have picked up in China continued where shipments surged 117% quarter-over-quarter, a testament to being a market leader domestically as well as internationally. Despite the difficult circumstances in the United States, the final determination of injury by the United States International Trade Commission concerning the anti-dumping duty and countervailing duty investigation of imports of crystalline silicon photovoltaic cells and modules from the People's Republic of China was partially favorable to us and we remain fully committed to our customers in the United States. With potential European Union tariffs on the horizon, we continue to adapt our strategy there and diversify the geographic mix of our customers. We are focused on emerging markets such as China, South Africa, South America and Eastern Europe.”
“Our downstream business remains on track and looks to be increasingly lucrative for us as module prices and construction expenses continue to decrease along with the assurances that stable feed-in-tariffs provide. Our project development and EPC business pipeline is showing increasing strength with three projects in Northwest China about to begin construction. We have already begun to see benefits from one of our EPC projects during the quarter and expect our downstream business to increase in scale and profitability as we move forward. Likewise, we have begun to adapt our strategy and deploy resources to leverage the opportunities that will emerge following the announcements by the Chinese Energy Administration and Chinese Finance Ministry to support distributed PV systems.”
“As we look forward, solar demand over the long term remains promising and we believe we are particularly well positioned to lead the industry in recovery given our strong balance sheet, competitive cost structure, efficient assets, and wide-reaching global presence. Our strong client relationships and reputation have enabled us to increase repeat business opportunities for us. We plan on continuing to manage our business prudently, adapt our strategy in line with market developments, and leverage our industry leading technology and cost structure to seize market opportunities and drive future growth,” concluded Mr. Kangping Chen.
