Jinko Solar Co., one of the world’s largest panel producers, reported first-half profit surged 325% as lower raw materials costs helped the sector cut prices and spurred demand.
(Bloomberg) — Jinko Solar Co., one of the world’s largest panel producers, reported first-half profit surged 325% as lower raw materials costs helped the sector cut prices and spurred demand.
Net income jumped to 3.84 billion yuan ($530 million) in the six months to June 30 from 905 million yuan in the same period a year earlier, the producer said Monday. China’s world-beating solar installations are already outpacing last year’s record, while a wave of new production capacity has lowered costs of polysilicon, a key material in panels.
“Major projects were initiated and started construction in China. The low prices of modules also led to a surge in module demand in some overseas markets,” Chairman and Chief Executive Officer Xiande Li said in a statement. Both production and sales in the solar market are likely to rise this half, he said.
Read more: China’s Solar Sector Is Speeding Past 2022’s Record Surge
Jinko’s Jiangxi Jinko unit plans to raise as much as 9.7 billion yuan through a private share offering to be used on activities including the construction of a manufacturing plant in Shanxi, the company said in a separate statement.
Sales reached 31 gigawatts of solar modules in the first half, with more than 60% sold outside of China, according to Jinko’s earnings statement. The producer forecasts full-year shipments of as much as 75 gigawatts.
Jinko plans to expand its global manufacturing footprint and will build source-tracing systems as China’s producers navigate trade barriers, including in the US.
The producer aims to have more than 12 gigawatts of solar wafer, cell, and module production capacity in Southeast Asia by the end of 2023, and plans to build a factory in Florida capable of producing about 1 gigawatt a year of advanced panels, Jinko said.
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