On August 31st, JinkoSolar (688223. SH) disclosed its 2024 interim report. Faced with intensified competition and price fluctuations in the global photovoltaic industry, the company demonstrated strong market competitiveness and operational resilience in the first half of 2024, leveraging multiple advantages such as technological innovation, global layout, and digital transformation.
The report shows that in the first half of 2024, JinkoSolar achieved a revenue of 47.251 billion yuan and a net profit attributable to the parent company of 1.2 billion yuan. Despite the overall pressure on the industry, the company has further solidified its market position with its efficient N-type TOPCon technology products and globally balanced layout. In the first half of the year, JinkoSolar's shipment volume reached 43.8GW, leading the second place by more than 25% according to third-party statistics. Among them, the company's shipment volume of N-type components is 35.9GW, accounting for over 80%, which has become a solid guarantee for the company's market share.
Due to fluctuations in supply chain prices and changes in international market policies, leading integrated component companies in the industry generally suffered losses in the first half of the year, with some companies experiencing a significant decline in market share. During the reporting period, JinkoSolar achieved an expansion of its leading advantage in shipments while delivering sustained profitability, which is truly commendable. In addition, during the industry downturn, the company is also the only leading integrated component enterprise in the industry to maintain a PV Tech financing rating of "AAA".
N-type leading global upgrade
In the first half of the year, JinkoSolar continued its absolute leading advantage in N-type TOPCon technology, which is also the core driving force supporting the company's market position. In the first half of the year, the mass production efficiency of N-type batteries reached 26.1%, with a yield rate of over 98%. The average power of N-type TOPCon components exceeded 595W, and the technological advantage not only won the market for the company, but also ensured that its products were leading in high premium market shipments worldwide. At the same time, the company has made significant breakthroughs in the field of perovskite stacked batteries, with a conversion efficiency of up to 33.24%, laying a solid foundation for future technological upgrades.
Under the leadership of JinkoSolar, the market share of N-type TOPCon technology has significantly increased in the first half of the year, establishing its position as the mainstream technology of the new generation. With its economy and continuous upgrading, the mainstream market share will be difficult to shake in the next 3-5 years.
At the same time, JinkoSolar's globalization strategy is further deepening. On the sales side, the company has performed well in emerging markets such as the Middle East and Southeast Asia, with a market share of 50%, especially in the Middle East. The company has successfully expanded into the Pakistani market, with an annual signing volume exceeding 4GW, and its market share in Thailand has further increased. In addition, the company's global manufacturing and investment processes have further accelerated. During the reporting period, the company's component products accounted for approximately 65% of overseas market shipments and 71% of overseas revenue, further increasing year-on-year.
In addition, the company recently announced the establishment of a joint venture with its Saudi Arabian partner to build an efficient photovoltaic cell and module project with an annual production capacity of 10GW. This project will become the largest manufacturing base for China's photovoltaic industry overseas. Helps to expand the company's market share in overseas markets, enhance its core competitiveness and profitability.
Digitization and new business layout for the future
Faced with homogenized competition in production capacity and industry competition, JinkoSolar believes that digitization and intelligence are the key to breaking through. Through the linkage of intelligent systems with production lines, automated transportation, and intelligent three-dimensional warehouses, the company significantly improved production and operational efficiency as well as cost control capabilities in the first half of the year. The Shanxi large base project is progressing according to plan, and the largest intelligent three-dimensional warehouse in the photovoltaic industry at the Haining base has officially been put into operation. The planned Saudi factory will also become one of the most advanced and digitized overseas factories in the world, further supporting the company's long-term development in the global market.
In addition, the company has made breakthrough progress in the layout of emerging businesses. With the gradual reduction of LCOE (levelized cost of electricity) of photovoltaic storage systems, the company's 5MWh large storage system provides customers with high-quality energy storage solutions and has also made significant progress in the distributed market. The company's energy storage business has developed rapidly in domestic and markets such as the Middle East, Australia, and South Africa, and has been rated as a Tier 1 supplier in the BNEF energy storage supplier rating. The company is also one of the few manufacturers to achieve Tier 1 evaluations in both the component and energy storage fields.
Looking ahead to the third quarter of 2024, the company expects component shipments to be 23-25GW. The company stated that with the stabilization of industry chain prices and the seasonal recovery of demand in the second half of the year, the company is confident in maintaining sustainable business performance by balancing shipments and profits in different regions while meeting the annual shipping guidelines.