JinkoSolar Announces Fourth Quarter and Full Year 2023 Financial Results

JinkoSolar Holding Co., Ltd., one of the largest and most innovative solar module manufacturers in the world, announced its unaudited financial results for the fourth quarter and full year ended December 31, 2023.

Fourth Quarter and Full Year 2023 Business Highlights

• Leveraging our outstanding N-type technology, extensive global operation network, and advanced integrated capacity structure, our module shipments for the full year 2023 increased 76.4% year-over-year to 78.5GW, ranking first in the industry.
• At the end of the fourth quarter, we became the first module manufacturer in the world to have delivered a total of 210 GW solar modules, covering over 190 countries and regions.
• By the end of the fourth quarter, we had been granted 330 TOPCon patents, overtaking most brands on the N-type TOPCon patent list.
• Currently, the mass production efficiency of N-type TOPCon cells exceeds 26%, and the power output of N-type modules is more than 30Wp higher than that of similar P-type modules.
• Our MSCI ESG rating was upgraded two levels to “BBB”, leading mainstream PV companies.

Fourth Quarter 2023: Operational and Financial Highlights

• Quarterly shipments were 27,862 MW (26,335 MW for solar modules, and 1,528 MW for cells and wafers), up 23.3% sequentially, and up 67.7% year-over-year.
• Total revenues were RMB32.83 billion (US$4.62 billion), up 3.1% sequentially and up 9.4% year-over-year.
• Gross profit was RMB4.09 billion (US$576.2 million), down 33.3% sequentially and down 2.8% year-over-year.
• Gross margin was 12.5%, compared with 19.3% in Q3 2023 and 14.0% in Q4 2022.
• Income from operations of RMB352.5 million (US$49.6 million), down 88.2% sequentially and down 42.6% year-over-year.
• Net income attributable to JinkoSolar Holding Co., Ltd.’s ordinary shareholders was RMB29.3 million (US$4.1 million), compared with RMB1.32 billion in Q3 2023 and RMB665.0 million in Q4 2022.
• Adjusted net income attributable to JinkoSolar Holding Co., Ltd.’s ordinary shareholders, which excludes the impact from (i) a change in fair value of the convertible senior notes (the “Notes”), (ii) a change in fair value of long-term investment and (iii) the share based compensation expenses, was RMB462.7 million (US$65.2 million), compared with RMB1.35 billion in Q3 2023 and RMB267.8 million in Q4 2022.
• Basic and diluted earnings per ordinary share were RMB0.14 (US$0.02) and RMB0.14 (US$0.02), respectively. This translates into basic and diluted earnings per ADS of RMB0.56 (US$0.08) and RMB0.54 (US$0.08), respectively.

Full Year 2023 Operational and Financial Highlights

• Annual shipments were 83,562 MW (including 78,520 MW for solar modules, and 5,043 MW for cells and wafers), up 80.1% year over year.
• Total revenues were RMB118.68 billion (US$16.72 billion), up 42.8% year over year.
• Gross profit was RMB19.05 billion (US$2.68 billion), up 55.1% year over year.
• Gross margin of 16.0%, compared with 14.8% in the full year of 2022.
• Income from operations was RMB6.09 billion (US$858.1 million), up 13.2 times year over year.
• Net income attributable to JinkoSolar Holding Co., Ltd.’s ordinary shareholders was RMB3.45 billion (US$485.6 million), up 4.56 times year over year.
• Adjusted net income attributable to JinkoSolar Holding Co., Ltd.’s ordinary shareholders, which excludes the impact from (i) a change in fair value of the “Notes”, (ii) a change in fair value of the long-term investment and (iii) the share-based compensation expenses, was RMB4.07 billion (US$573.6 million), compared with RMB1.39 billion in 2022.
• Basic and diluted earnings per ordinary share were RMB16.60 (US$2.34) and RMB15.23 (US$2.15), respectively. This translates into basic and diluted earnings per ADS of RMB66.39 (US$9.35) and RMB60.90 (US$8.58), respectively.

Mr. Xiande Li, JinkoSolar’s Chairman and Chief Executive Officer, commented, “We are pleased to have achieved very impressive operational and financial results in a challenging year by leveraging our advantages in N-type TOPCon technology, global operations and integrated capability. Module shipments for the full year increased 76.4% year-over-year to 78.5 GW, back to the top position in the industry. Benefiting from our efforts in cost optimization, our profitability for the full year significantly improved year-over-year, with gross margin at 16.0%, compared to 14.8% in 2022. Net income was US$485.6 million, up 4.56 times year-over-year. Adjusted net income was US$573.6 million, up 1.93 times year-over-year. Module shipment in the fourth quarter was 26.3GW, exceeding our guidance. 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% from 19.3% in the third quarter.

Thanks to our integrated manufacturing strategy and early leading position in N-type TOPCon technology, by the end of the fourth quarter, our N-type capacity exceeded 70 GW and our cost structure continues to improve. Currently, our mass-produced N-type cell efficiency exceeds 26%, while the integrated cost of N-type is almost on par with that of P-type. With the continuous introduction of new cell technologies and optimization of production processes, our cost structure is expected to become more competitive.

We have the largest overseas integrated capacity of over 12 GW in the industry and an effective supply chain traceability system. This has made us the most reliable module supplier to the U.S. market and expect to generate significant profit in 2024. Phase I and II of our integrated project in Shanxi, China will start production gradually in the first half of 2024, as planned, and ramp up in the second half of 2024. This innovative production model relying on fully integrated automation will greatly improve efficiency in labor and operational processes and is expected to bring a significant reduction in operating costs once we reach full production.

Taking into account supply chain and market conditions, we are reducing investments in capacity expansion in 2024. We are focusing on expanding our advanced N-type capacity, including 28 GW of integrated capacity in our Shanxi plant in China and about 4 GW of N-type cell and module capacity in Vietnam.

We expect the decline in module prices to significantly improve the economics of the solar energy industry in the short-to-mid-term, and we anticipate demand in the global PV market to continue to increase in 2024. Meanwhile, rapid iterations 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 approximately 70% in 2023 to over 90% in 2024. We are confident to successfully navigate through cyclical fluctuations in the PV industry and we expect our market share to further increase in 2024.

We attach great importance to intellectual property rights and are fully focused on sustaining our technical leadership based on extensive intellectual property rights. As of December 31, 2023, we had been granted 330 TOPCon patents, one of the largest portfolios of granted TOPCon patents in the world.

We expect module shipments to be in the range of 18 GW to 20 GW for the first quarter of 2024, and 100 GW to 110 GW for the full year 2024, with N-type accounting for nearly 90% of total module shipments. We expect our annual production capacity for mono wafers, solar cells and solar modules to reach 120 GW, 110 GW and 130 GW, respectively, by the end of 2024, with N-type capacity accounting for over 90% of total capacity. By then, we believe mass-produced N-type cell efficiency will have reached 26.5%.”

Fourth Quarter and Full Year  2023 Operational Highlights

Solar Module, Cell and Wafer Shipments

• Total shipments were 27,862 MW in the fourth quarter of 2023, including 26,335 MW for solar module shipments and 1,528 MW for cell and wafer shipments.
• Total shipments in the full year 2023 were 83,562 MW, including 78,520 MW for solar module shipments and 5,043 MW for cell and wafer shipments.

Operations and Business Outlook Highlights

We are optimistic about global market demand and the opportunities brought by the increasing penetration of N-type technology. We will continue to maintain our leading position in N-type modules through technology iteration, improvement in mass production capability, and cost optimization. By the end of 2024, we expect mass-produced N-type cell efficiency to reach 26.5%, The proportion of N-type modules shipments in our total module shipments is expected to reach nearly 90% in 2024, as we anticipate strong demand for high-efficiency products from a growing number of markets and customers.

Taking into account supply chain and market conditions, we are reducing investments in capacity expansion in 2024. We are focusing on expanding our advanced N-type capacity, including 28 GW of integrated capacity in our Shanxi plant in China and about 4 GW of N-type cell and module capacity in Vietnam. We continue to focus on improving working capital efficiency and achieving sustainable growth in operating cash flow.

First Quarter and Full Year 2024 Guidance

The Company’s business outlook is based on management’s current views and estimates with respect to market conditions, production capacity, the Company’s order book and the global economic environment. This outlook is subject to uncertainty on final customer demand and sale schedules. Management’s views and estimates are subject to change without notice.

For the first quarter of 2024, the Company expects its module shipments to be in the range of 18.0 GW to 20.0 GW.

For full year 2024, the Company estimates its module shipments to be in the range of 100.0 GW to 110.0 GW.

Solar Products Production Capacity

JinkoSolar expects its annual production capacity for mono wafer, solar cell and solar module to reach 120.0 GW, 110.0 GW and 130.0 GW, respectively, by the end of 2024.

Recent Business Developments

• In November 2023, JinkoSolar’s wafer factory in Leshan, Sichuan Province passed the “Zero Carbon Factory Evaluation Code” and was awarded the “Zero Carbon Factory” certification by TÜV Rheinland for its advanced green business practices.
• In November 2023, JinkoSolar participated at the COP28 United Nations climate change conference held in Dubai from November 30th to December 12th, 2023, underlining its leadership role in the solar energy sector and its commitment to addressing the challenges posed by global warming on a global scale.
• In December 2023, JinkoSolar was honoured with the PV Magazine Publisher’s Pick Award 2023 for its latest commercial and industrial energy storage system SunGiga.
• In December 2023, JinkoSolar was awarded with the ESG Transparency Award from EUPD Research.
• In December 2023, JinkoSolar’s board of directors authorized the Company to extend its existing share repurchase program launched in July 2022 for an additional 18-month period through June 30, 2025. As of the date of this press release, JinkoSolar has repurchased 280,000 ADS in an aggregate amount of approximately US$9.1 million in the open market under its existing share repurchase program and 685,000 ADSs in an aggregate amount of approximately US$19.3 million in the open market under its extended share repurchase program.
• In December 2023, JinkoSolar announced that it has been granted 330 TOPCon patents after almost six years, overtaking most brands on the N-type TOPCon patent list.
• In December 2023, JinkoSolar announced that all shareholders resolutions proposed at its 2023 annual general meeting were duly passed.
• In December 2023, the near and long-term science-based emissions reduction targets of Jiangxi Jinko were approved by the SBTi, making JinkoSolar the first PV company in the world to have its Net-zero targets validated.
• In January 2024, JinkoSolar’s affiliated company granted rights to certain of its N-type TOPCon-related patents to one of the top ten solar module companies in the world with reasonable license fee arrangement, allowing Licensee to use certain JinkoSolar’s patented TOPCon technologies in its relevant TOPCon products.
• In January 2024, JinkoSolar won the Solar Power World 2023 Leadership in Solar Energy Award in the solar panel category.
• In January 2024, Jiangxi Jinko published estimates of certain preliminary unaudited financial results for the full year ended December 31, 2023.
• In February 2024, JinkoSolar’s affiliated company signed a TOPCon patent license agreement with one of the world’s top five solar cell companies, granting rights to certain of its N-type TOPCon related patents to Licensee for a fee, allowing Licensee to use certain JinkoSolar’s patented TOPCon technologies in its relevant TOPCon products.
• In February 2024, JinkoSolar unveiled Neo Green panels.
• In February 2024, Jiangxi Jinko announced certain preliminary unaudited financial results for the full year 2023.
• In February 2024, JinkoSolar announced that it will become the Premium Sponsor of the Team Gresini Racing for MotoE World Championship 2024.