China-headquartered solar cell and module manufacturer JinkoSolar‘s total revenue in the fourth quarter (Q4) of 2023 rose by 9.4% year-over-year (YoY) to RMB 32.83 billion (~$4.62 billion), compared to RMB 30 billion (~$4.2 billion) in the same period last year. The increase was mainly due to higher solar module shipments driven by rising global demand, partially offset by lower average selling prices.

Adjusted net income in the quarter rose 73% to RMB 462.7 million (~$64.2 million) from RMB 267.8 million (~$37.2 million) last year, as the company shipped higher volumes of modules and reigned in expenses.

Adjusted net income excludes impacts from change in fair value of the company’s notes, long-term investments and share based compensation expenses.

Solar module shipments in Q4 reached 26,335 MW, a 67.7% jump compared to Q4 of 2022. However, despite higher sales, the gross margin fell by 150 basis points, primarily due to the decline in module average selling prices.

“As module prices fell more than expected in the fourth quarter and nearly 50% of our modules were sold to the Chinese market at lower prices, gross margin for the fourth quarter decreased significantly to 12.5%,” said CEO Xiande Li. Gross margin in the same quarter last year was 14%.

Full-year 2023

JinkoSolar’s total revenue for the full year (FY) 2023 rose by 42.8% to RMB 118.68 billion (~$16.72 billion), compared to RMB 83.13 billion (~$11.6 billion) in 2022, mainly due to higher module shipments offsetting lower average selling prices.

Adjusted net income for FY 2023 was RMB 4.07 billion (~$485.6 million), a remarkable increase of 193% compared to RMB 1.39 billion (~$193 million) in 2022. The growth was driven by the company’s strong operational performance and effective cost-management strategies.

Module shipments for FY 2023 reached 78,520 MW, a rise of 80.1% compared to 2022. The company claimed that the growth in module shipments positioned it as the top module supplier globally. Executives noted the ramp-up of integrated overseas capacity was a key enabler.

The gross margin for 2023 was 16%, higher than the 14.8% reported in 2022, driven by lower material costs.

“Rapid iteration of new technologies and the elimination of obsolete production capacity will also accelerate the consolidation of the industry. Market share for the top 10 module manufacturers is expected to increase from 70% in 2023 to over 90% in 2024,” said Xiande during a post-earnings conference call with analysts.

The company also plans to phase out the 20 GW of PERC capacity throughout the year and have 100% N-type capacity by the end of the year.

Xiande added, “In China, newly added PV installations reached 216.88 GWs in 2023, up 148.1% year-over-year to a historical high. At the same time, excess supply in various links of the industrial chain led to price decline. Tender prices for modules at the year-end decreased by over 40% to below RMB1 (~$0.14) per watt. Compared to the beginning of the year, export volumes of PV products in 2023 increased significantly year-over-year, whereas export volume fell slightly as a result of decreasing prices. In January and February 2024, seasonality combined with extreme competition from certain manufacturers intensified the market panic and irrational prices.”

In the previous quarter, Jinko’s net income soared 140% on the back of higher module shipments.

Jinko Solar was also among the top solar module suppliers in the first half of 2023 according to Mercom’s India Solar Market Leaderboard 1H 2023.