JinkoSolar, a Chinese solar module and cell manufacturer has announced the unaudited financial results for the second quarter (Q2) 2020.

According to the financial statement, the total revenue of the company in Q2 2020 was $1.2 billion (~₹88.49 billion), a decrease of 0.4% as compared to $1.24 billion (~₹91.4 billion) in Q1 2020.

The total revenue saw a growth of 22.2% when compared to $1.01 billion (~₹74.5 billion) during the same period last year. The company attributed the increase in total revenue to the rise in the shipment of solar modules partially offset by a decline in the average selling price of modules.

The company stated that the gross profit in Q2 2020 stood at $214.1 million (~₹15.8 billion) compared to $243.1 million (~₹17.9 billion) in Q1 2020, a drop of 12%. The figure for Q2 2020 was higher than $167.71 million (~₹12.4 billion) registered during the same period last year, marking an increase of 28%.

The year-over-year increase was mainly attributable to the rise in the shipment of solar modules, an increase in self-production volume that is shifting toward mono-based high-efficiency product capacity, and the continued reduction of integrated production costs.

In January, JinkoSolar announced that it had broken the world record for maximum conversion efficiency for its bifacial solar modules, hitting 22.49%. The company said it had set a new industry standard for the efficiency of mass-produced solar cells.

In its financial statement, the company noted that the gross margin was 17.9% in Q2 2020, compared to 19.5% in Q1 2020, and it was slightly higher than 16.5% in Q2 2019.

The company reported an income of $61.5 million (~₹4.5 billion) compared to $107.3 million (~₹7.9 billion) in the preceding quarter. The operating margin in Q2 2020 was 5.1% as compared to 3.8% in Q2 2019.

Speaking on the results, Kangping Chen, JinkoSolar’s CEO, commented, “JinkoSolar delivered a strong quarter with total revenue exceeding guidance. Despite the tough economic environment worldwide, total solar module shipments and gross margin for the quarter were all within our guidance range. Module shipments hit a new high of 4.4 GW, an increase of 31% sequentially and 32% year-over-year. We expect orders for the third and fourth quarters to increase, with total solar module shipments expected to be in the range between 5 GW to 5.3 GW for the third quarter, and our guidance for total shipments for the full year 2020 remains unchanged at 18 GW to 20 GW.”

The total operating expenses in Q2 2020 was $152.6 million (~₹11.3 billion), an increase of 16.7% from $135.4 million (~₹9.9 billion) in Q1 2020 and an increase of 22% from $129.4 million (~₹9.5 billion) during the same period last year.

The total operating expenses accounted for 12.8% of total revenues in the second quarter of 2020, compared to 10.9% in the first quarter of 2020 and 12.8% in Q2 2019.

The total solar module shipments in Q2 2020 stood at 4.4 GW. As of June 30, 2020, the company’s in-house annual mono wafer, solar cell, and solar module production capacity were 20 GW, 11 GW, and 25 GW, respectively.

Recently, JinkoSolar announced that its board of directors had approved a strategic plan to access China’s capital market through its principal operating subsidiary Jiangxi Jinko. The company is considering the opportunity to list Jiangxi Jinko on the Shanghai Stock Exchange’s Sci-Tech Innovation Board after some intragroup restructuring.