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Solar Jinko Building Your Trust in Solar Jinko Solar Announces Second Quarter 2021 Financial Results September 15 , 2021 SHANGRAO , China , Sept. 15 , 2021 / PRNewswire / -- J inkoS olar Holding Co. , Ltd. ( " ) inkoS olar " or the " Company " ) ( NYSE : JKS ) , one of the largest and most innovative solar module manufacturers in the world , today announced its unaudited financial results for the second quarter ended J une 30 , 2021 . Second Quarter 2021 Business Highlights • As the price of polysilicon rose rapidly in the second quarter , and there was a certain time gap in the transmission of price increases from upstream to downstream in the industry chain , we quickly increased the external sales of silicon wafers , and proactively lowered the production volume of solar modules . • Over 7GW of new cell capacity was put into production in the second quarter to support the rapidly growing demand for large - size products . • We signed strategic logistic cooperation agreement with Maersk and China COSCO Shipping Corporation to support steady growth in global sales . • We are optimistic about the global demand in the second half of 2021 and in 2022 , and will accelerate our market expansion in China . Second Quarter 2021 Operational and Financial Highlights Quarterly shipments were 5,203 MW ( 3,976MW for solar modules , 1,227 MW for cells and wafers ) , total shipments down 2.8 % sequentially , and up 16.4 % year over year . • Total revenues were RMB7.93 billion ( US $ 1.23 billion ) , down 0.2 % sequentially and down 6.2 % year over year . • Gross profit was RMB1.36 billion ( US $ 210.5 million ) , up 0.1 % sequentially and down 10.2 % year over year . • Gross margin was 17.1 % , compared with 17.1 % in Q1 2021 and 17.9 % in Q2 2020 . • Net income was RMB66.2 million ( US $ 10.3 million ) , down 79.2 % year over year . Mainly because of the impacts of convertible senior notes . • Non - GAAP net income was RMB274.7 million ( US $ 42.5million ) , up 457.4 % sequentially and down 27.0 % year over year . • Basic and diluted earnings per share were RMB0.35 ( US $ 0.05 ) and RMB0.35 ( US $ 0.05 ) , respectively . Basic and diluted earnings per ADS were RMB 1.39 ( US $ 0.22 ) and RMB1.38 ( US $ 0.21 ) , respectively . • Non - GAAP basic and diluted earnings per share were RMB 1.44 ( US $ 0.22 ) and RMB 1.44 ( US $ 0.22 ) , respectively . Non - GAAP basic and diluted earnings per ADS were RMB5.76 ( US $ 0.89 ) and RMB5.75 ( US $ 0.89 ) , respectively . ● Mr.Xiande Li , J inkoS olar's Chairman of the Board of Directors and Chief Executive Officer , commented , " We are very pleased to have delivered revenue of US $ 1.23 billion , and gross margin of 17.1 % , as well as a significant increase in Non - GAAP net profit quarter - over - quarter , despite very challenging market conditions . As prices along the supply chain remain high , but relatively stable , we see overall acceptance of price increases continuing well into the second half of the year . Demand for modules is gradually resuming , and our module production volume increased remarkably month - over - month in the third quarter . We are taking initiatives to strengthen our business for the long - term and increase the reliability of our services to the U.S market . So far , we have formed a few strategic co - operations such as a joint investment with Tongwei Co. , Ltd. in a high - purity crystalline silicon project with annual capacity of 45,000 metric tons , an investment in Inner Mongolia Xinte Silicon Materials Co. , Ltd. , and we have signed a strategic five - year polysilicon supply agreement with Wacker Chemie AG . Wacker will supply polysilicon to Jinko Solar from its production sites in Germany and the United States . Meanwhile , our overseas wafer manufacturing facility started construction in August and will serve our production facilities in Malaysia and the United States when production ramps up . We further improved our traceability system for procurement and production . Over 7GW of newly - added capacity of large - size cells was put into production during the second quarter to support the rapid growth in demand for large - size products . We are also expanding our investment plan for N - type cell capacity based on our technical advantages and two years of mass production experience . We expect the proportion of our large - size product shipments to increase rapidly to approximately 50 % of total shipments in the second half of this year . In addition , the uptake of the distributed generation businesses achieved rapid development with more flexible business models and lower sensitivity to prices . In response to this trend , we have also raised the proportion of shipments in relation to distributed generation projects for the full year to around 40 % , compared with 20 % -25 % last year , in order to meet the needs of customers facing different distributed application scenarios . We expect the second half of 2021 through 2022 to be a big moment for solar installations , and we believe we will grow even faster than the industry average and further increase our market shares . " Second Quarter 2021 Financial Results Total Revenues Total revenues in the second quarter of 2021 were R MB7.93 billion ( US $ 1.23 billion ) , a decrease of 0.2 % from RMB 7.94 billion in the first quarter of 2021 and a decrease of 6.2 % from RMB8.45 billion in the second quarter of 2020. The sequential and year - over - year decreases were mainly attributable to a decrease in the shipment of solar modules . Gross Profit and Gross Margin Gross profit in the second quarter of 2021 was RMB 1.36 billion ( US $ 210.5 million ) , compared with RMB1.36 billion in the first quarter of 2021 and RMB 1.51 billion in the second quarter of 2020 . Gross margin was 17.1 % in the second quarter of 2021 , compared with 17.1 % in the first quarter of 2021 and 17.9 % in the second quarter of 2020. The year - over - year decrease was mainly attributable to a decline in the average selling price of solar modules in response to the intensified market competition globally , partially offset by the Company's continued reduction of integrated production costs enabled by its industry - leading integrated cost structure . Income from Operations and Operating Margin Income from operations in the second quarter of 2021 was RMB 356.4 million ( US $ 55.2 million ) , compared with RMB 149.1 million in the first quarter of 2021 and RMB434.7 million in the second quarter of 2020 . Operating margin was 4.5 % in the second quarter of 2021 , compared with 1.9 % in the first quarter of 2021 and 5.1 % in the second quarter of 2020 . Total operating expenses in the second quarter of 2021 were RMB1.00 billion ( US $ 155.3 million ) , a decrease of 17.1 % from RMB 1.21 billion in the first quarter of 2021 and a decrease of 7.0 % from RMB1.08 billion in the second quarter of 2020. The sequential decrease was mainly attributable to ( i ) a decrease in shipping costs as a result of a decrease in the shipment of solar modules and ( ii ) a decrease in disposal and impairment loss on property , plant and equipment . The year - over - year decrease was mainly attributable to a decrease in shipping costs in relation to the decrease in the shipment of solar modules in the second quarter of 2021 . Total operating expenses accounted for 12.6 % of total revenues in the second quarter of 2021 , compared to 15.2 % ( or 13.7 % excluding impairment loss ) in the first quarter of 2021 and 12.8 % in the second quarter of 2020 . Interest Expense , Net Net interest expense in the second quarter of 2021 was RMB157.5 million ( US $ 24.4 million ) , an increase of 0.6 % from RMB156.5 million in the first quarter of 2021 and an increase of 48.3 % from RMB106.2 million in the second quarter of 2020. The year - over - year increase was mainly due to an increase in interest expense , as the Company's interest - bearing debts increased . Subsidy Income Subsidy income in the second quarter of 2021 was RMB 162.2 million ( US $ 25.1 million ) , compared with R MB130.3 million in the first quarter of 2021 and RMB 14.4 million in the second quarter of 2020 . Exchange Loss / ( Gain ) and Change in Fair Value of Foreign Exchange Derivatives