JinkoSolar Holding Co., Ltd. (NYSE: JKS), one of the most massive and state of the art solar panel producer around the globe, announced its unaudited financial report for the fourth quarter and full year ended December 31, 2020. JKS stock saw a 5.59% plunge following the news.
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Despite an economic halt due to the pandemic, JKS still saw remarkable growth in both revenues and shipments as compared to 2019. By the end of 2020, Jinko Solarestablished itself as the largest PV producer, with an average module producing 70GW, with JKS predicting to exhibit a growth rate of 30% in 2021
JKSNewly established product line will produce 40% to 50% of aggregate shipments this year, with accumulated orders of over 10 GW.
JKS Fourth quarter and Financial highlights.
JKS Quarterly shipments were 5,774 MW, showing a staggering increase of 27.2% year over year, however, their total revenues ended at US$1.44 billion, plummeting 1.1% year over year. Gross profit also declined 12.9% year over year to US$230.9 million which reduced investor interest and made the shareholders skeptical about the future valuation of the company.
Mr. Xiande Li, JinkoSolar’s Chairman of the Board of Directors and Chief Executive Officer, stated, “2020 was a very challenging year for the solar industry as global markets were shrouded in uncertainty due to the COVID-19 pandemic. Despite difficult market conditions, we increased our global market share and captured growth opportunities thanks to our resilient network and strategic partnerships along the industry value chain” reassuring about JKS financial surplus in the future.
Gross margin was 16.0% in the fourth quarter 2020, against 17.0% in the previous quarter and 18.2% in the fourth quarter of the previous year, 2019. The Year over Year decline took place due to the reduced average selling price of solar panels to gain an advantage in a highly competitive and saturated market of solar modules as well as a surge in the cost of solar module raw materials.
Conclusion
JKS had faced high levels of uncertainty effecting its sale and net profit, with heightened competition among key players. In response JKS has been optimizing supply chain management, however, diminishing investor interest after declined Revenue and profit compared to previous years.
