Chinese solar cell and module manufacturer Jinko Solar has reported a 2.3% year-over-year (YoY) decline in its total revenue for the third quarter (Q3) of 2021.

The total revenue declined to RMB 8.57 billion (~$1.33 billion) from RMB 8.77 billion (~$1.37 billion) in the same period last year. The revenues were reportedly affected by the decrease in the shipment of solar modules.

However, in Q3 2021, the company’s revenue increased 8.1% quarter-over-quarter (QoQ) compared to RMB 7.93 billion (~1.24 billion) in the previous quarter.

Income statement summary

The company’s gross profit in Q3 2021 stood at RMB 1.30 billion (~$201.1 million), a 12.75% decline compared to RMB 1.49 billion (~$233.86 million) in the same period last year. The gross profit decreased 4.41% QoQ from RMB 1.36 billion (~$213.46 million) in Q2 2021.

In Q3 2021, the gross margin was 15.1%, compared to 17% in Q3 2020 and 17.1% in Q2 2021. The company attributed the fall to an increase in material prices and a decrease in the average selling price of solar modules in response to the intensified global market competition.

Module shipments in Q3 2021 stood at 4.93 GW, including 4.67 GW of solar modules and 332 MW of cells and wafers. The total shipments were down 4% QoQ and 2.4% YoY.

The company said its percentage of module shipments in the Chinese market doubled in Q3 2021 from the previous quarter.

The company’s income from operations in Q3 2021 was RMB 111.2 million (~$17.3 million), compared to RMB 546 million (~$85.68 million) in Q3 2020. Its operating margin declined to 1.3% in Q3 2021 from 4.5% in Q2 2021 and 6.2% in Q3 2020.

In Q3 2021, the company’s net income stood at RMB 195.037 million (~$30.27 million), a 243% increase compared to RMB 56.79 million (~$8.91 million) in the same period last year. The net income increased 16.86% from RMB 166.893 million (~$26.19 million) in Q2.

The company forecasts total shipments for Q4 2021 to be 7.3 GW to 8.8 GW, including solar module shipments of 7-8.5 GW. For Q4 2021, the company expects the total revenue to be in the range of $1.8 billion to $2.2 billion. By 2021, the total shipments are expected to be between 22.8 GW and 24.3 GW.

The company expects its annual mono wafer, solar cell, and module production capacity to reach 32.5 GW, 24 GW (including 940 MW N-type cells), and 45 GW, respectively, by the end of 2021.

In September 2021, the company announced that it would invest $500 million to build a monocrystalline ingot and wafer manufacturing facility in Quảng Ninh Province, Vietnam.

JinkoSolar’s Chairman of the Board of Directors and Chief Executive Officer Xinade Li said, “Logistics costs have further increased compared with the second quarter, and module prices hit a new high in almost a year. However, due to the transition to renewable energy in most regions of the world, the increase in electricity prices, financing support, and other favorable policies, clients are more willing to accept higher module prices. Currently, in its most severe shortage, we expect polysilicon supply will gradually return to sufficient levels starting next year, and as a result, installation demand is expected to increase significantly.”

He said that the company’s 7 GW monocrystalline silicon wafer plant in Vietnam would commence production in the first quarter of 2022.

According to India Solar Market Leaderboard 1H 2021, JinkoSolar was among India’s top three module suppliers with a 14% market share.