JinkoSolar Holding (JKS) Q2 FY24 Earnings call transcript Aug 30, 2024

JinkoSolar Holding Co., Ltd. recently held its Second Quarter 2024 Earnings Conference Call, during which key executives discussed the company's business operations, sales and marketing strategies, and financial performance. The call provided valuable insights into the company's global position, market trends, and future outlook.

Company Performance and Market Leadership

JinkoSolar's module shipments grew by 34.1% year-over-year to 23.8 gigawatts in the second quarter, cementing its position as the industry leader. The company's globalization strategy, coupled with its leading position in N-type TOPCon technology, has enabled it to maintain its market dominance. Despite a slight decline in prices in several market segments, JinkoSolar has managed to optimize its supply chain strategy and maintain a gross margin of 11.1%.

Market Trends and Challenges

The global demand for solar modules showed a faster growth momentum in the first half of 2024, with new installations totaling 102 gigawatts in China and a 20% increase in solar module exports year-over-year. However, the industry is facing challenges, including oversupply and irrational price declines, which are impacting utilization rates and profitability. JinkoSolar is navigating these challenges by optimizing its operations, expanding its globalization capabilities, and investing in innovative technologies like TOPCon.

Product Innovation and Globalization

JinkoSolar is at the forefront of solar cell technology, with its latest N-type TOPCon-based perovskite tandem solar cell achieving a record efficiency of 33.24%. The company is also expanding its global manufacturing capabilities through strategic partnerships, such as the recent joint venture with Saudi Arabia's Vision Industries Company for the production of 10 gigawatts of high-efficiency solar cells and modules. This strategic move underscores JinkoSolar's commitment to localized production and international expansion.

Financial Performance and Outlook

JinkoSolar's financial performance for the second quarter was marked by a slight decrease in adjusted net income compared to the first quarter. However, the company's total revenue of $3.3 billion and record-breaking efficiency levels demonstrate its robust financial health and commitment to innovation. Looking ahead, JinkoSolar expects module shipments to be between 23 to 25 gigawatts for the third quarter and is confident in its ability to maintain its market leadership through strategic investments and operational efficiencies.

Investor and Analyst Interactions

During the call, key shareholders and investors asked questions about JinkoSolar's pricing trends, gross margins, and the outlook for the second half of 2024 and beyond. The company's executives provided insightful responses, highlighting their confidence in the company's ability to navigate market challenges and capitalize on growth opportunities.

Conclusion

JinkoSolar's Second Quarter 2024 Earnings Conference Call painted a picture of a company that is strategically positioned for long-term growth and innovation in the solar industry. Despite market challenges, JinkoSolar's leadership in N-type TOPCon technology, global manufacturing capabilities, and commitment to R&D and market expansion position it well for future success. Investors and analysts will closely watch the company's performance in the second half of 2024 and beyond, as it continues to shape the future of solar energy.