Courtesy of Benzinga.
JinkoSolar (NYSE: JKS) reported its second quarter earnings. Shares of the company are fairly neutral.
Below are some key highlights:
• Total revenues increased 20.8 percent sequentially, and 37.8 percent year-over-year with total solar product shipment, increasing 13.5 percent sequentially, and 34.8 percent year-over-year.
• Our revenue streams continue to diversify with continued growth of our downstream business.
• We secured US$225 million in private equity financing during the quarter for Jinko power, our subsidiary that develops and operates our downstream solar power project business.
• I believe that Chinese market will remain the largest market this year as we look to maintain our leading position there.
• We once again reached our shipments and profitability target for the quarter, helping to once again reinforce our confidence to meet our full year guidance.
• We expect to see our five year period of rapid growth beginning this year, with 91 percent of PV module demand coming from silicon existing modules.
Financials and Results:
• Gross margin was 22.6 percent in the second quarter of 2014 compared with 24 percent in the third quarter of 2014 and 17.7 percent in the second quarter of last year.
• Total operating expenses in the second quarter of 2014 were US$48.1 million, an increase of 6.8 percent sequentially and an increase of 91.7 percent year-over-year.
• Net interest expense in the second quarter of 2014 was US$11.5 million, an increase of 17.3 percent sequentially and an increase of 22.3 percent year-over-year.
International:
• Solar prices for China and to the USA have increase more than 9 percent in the very short period, while export from China to Europe fell over 62 percent last year.
• Regarding Europe, while we expect over 7 gigawatt for the whole year 2014, we are facing anti-dumping and countervailing duties challenges.
• Regarding marketing, we have been attending conferences and exhibitions around the world, including in the USA, in Europe, particularly in the UK, Asia-Pacific and emerging markets
