China-headquartered photovoltaic (PV) manufacturer JinkoSolar has recorded non-GAAP net earnings of RMB4.4m ($0.7m) in 2011, a significant decrease compared to 2010’s RMB835.8m ($132m).
The decrease came in spite of the fact that revenues were up to a record RMB7.4bn ($1.2bn), a 58.7 per cent increase on the previous year. In addition, the company shipped 950.5MW of equipment, almost double 2010’s total and a high for the company.
The fourth quarter of 2011 saw JinkoSolar ship products with a capacity of 227MW, compared to 257.7MW in the third quarter and 162.6MW in the same period of 2010.
The company made a net loss of RMB366.6m ($50.2m) in the last three months of the year, following a net income of RMB68.1m ($10.8m) in the third quarter and RMB368.3 ($58m) in the last same period of the preceding year.
Kangping Chen, CEO of JinkoSolar, said, ‘Despite a challenging fourth quarter of 2011 for both our company and the industry as a whole, we remain confident in our ability to take advantage of our vertically integrated business model as we continue improving on the efficiency of our production process and generate value for our shareholders over the long term.
‘Our gross margin continued to be affected by declining average selling prices (ASPs), which continued to fall faster than we anticipated and added pressure to an already uncertain global economic environment. Although the price of polysilicon and other auxiliary materials also fell, the decline was not sufficient to offset our lower ASPs.’
‘As we look forward, we believe that the long term growth prospects for the solar market remain promising as industry consolidation accelerates. Our optimistic outlook is rooted in our belief that module demand around the world will eventually emerge from its current lows in the second half of this year. Our strong balance sheet, growing brand recognition, competitive cost structure and diverse geographic presence leave us well positioned once the industry starts to rebound.’
In January JinkoSolar opened a new office in Montpellier, France, as part of an expansion strategy for Europe.
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