China-based solar cell and module manufacturer Jinko Solar reported a net income of RMB2.41 billion (~$331.38 million) in the second quarter (Q2) of 2023, a considerable improvement from a net loss of RMB346.48 million (~$47.64 million) in Q2 2022.

The net income increased by 73% quarter-over-quarter (QoQ).

The considerable improvement in the net income was attributed to increased module shipments by the company.

The quarterly shipments stood at 18,613 MW (17,763 MW for solar modules and 850 MW for cells and wafers), an increase of 77% year-over-year (YoY). The numbers increased 31% sequentially. The module shipments alone increased by 74% YoY.

The company said that its N-type module shipments in Q2 2023 stood at 10.4 GW, making Jinko Solar the first company to deliver 10 GW of N-type modules in a single quarter.

The company reported total revenue of RMB30.69 billion (~$4.22 billion) during the quarter, an increase of 63% YoY. The numbers increased 31% compared to RMB23.33 billion (~$3.21 billion) in Q1 2023.

Speaking during the quarterly earnings call, Xiande Li, Chairman and CEO of Jinko Solar, said, “We are pleased to report solid growth as we overcame volatility in supply chain prices and end demand thanks to our excellent marketing network, high-quality products, and highly effective supply chain management.”

“With more and more players deploying TOPCon production capacity, N-type TOPCon is certain to become the mainstream technology in the industry. However, some new entrants experienced project delays and a slower-than-expected ramp up in production volume and efficiency due to lack of sufficient technical know-how and differences in technology and production process, keeping competitive N-type production in short supply,” he said.

1H 2023

The company posted a net income of RMB3.81 billion (~$523.89 million) in the first half (1H) of 2023, compared to a loss of RMB242.21 million (~$33.31 million) in 1H 2022 as the shipments surged during the period.

Jinko Solar reported revenues of RMB54.01 million (~$81.72 million) in 1H 2023, an increase of 61% YoY.

The N-type shipments accounted for about 50% of 1H module shipments.

As of June 30, 2023, Jinko Solar had RMB17.03 billion (~$2.35 billion) in cash and cash equivalents and restricted cash, compared with RMB10.17 billion (~$1.39 billion) as of March 31, 2023.

Source: Jinko Solar

The company expects the annual production capacity for mono wafers, solar cells, and solar modules to reach 85 GW, 90 GW, and 110 GW by the end of 2023, with N-type capacity accounting for over 75% of the total capacity. The module shipments are expected to range from 19 to 21 GW for Q3 2023.

Xiande added, “Due to the substantial release of polysilicon production volumes and excessive inventory, price of polysilicon declined sharply in the second quarter, resulting in certain volatility in module prices and a slow-down in customer orders, affecting module demand. As the prices in lower supply chain stabilized in the third quarter, domestic customers started to place orders, and major projects were initiated and started construction in China. The low prices of modules also led to a surge in module demand in some overseas markets. We expect production and sales in the PV market to rebound in the second half of 2023.”

In April this year, Jiangxi Jinko completed the issuance of its convertible bonds in the principal amount of RMB10 billion (~$1.38 billion) on the Shanghai Stock Exchange’s Sci-Tech Innovation Board. Jinko Solar subscribed for the convertible bonds in an aggregate amount of RMB5.5 billion (~$756.27 million) with its special pre-emptive rights and is subject to a six-month lock-up period.

In May, Jinko Solar’s majority-owned subsidiary, Jiangxi Jinko Solar, had proposed plans for production lines with an annual capacity of 56 GW to manufacture monocrystalline silicon pull rods, silicon wafers, high-efficiency solar cells, and modules.

Earlier, Jinko Solar announced that its majority-owned subsidiary, Jiangxi Jinko, had entered into an agreement for the sale of its complete equity interest in Xinjiang Jinko for a consideration of RMB 4.3 billion (~$622 million).