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Global PV modules enterprises are again facing an industry reshuffle. This time, JinkoSolar Holding Co., Ltd. (JinkoSolar), a global leader in photovoltaic (PV) industry from Shanghai, stood in the peak of the PV industry.
According to JinkoSolar’s 2nd quarter report, its shipments of solar modules, consecutively for 2 quarters, were ahead of that of Trina Solar Co., Ltd. (Trina Solar) which was JinkoSolar’s rival in Silicon Module Super League (SMSL). JinkoSolar also ranked No.1 in the global shipments, edging out Trina Solar, the top 1 for two years. JinkoSolar was the fourth Chinese PV modules enterprises to come on top in the world.
After tackling down different crisis in PV industry, Chinese PV modules enterprises performed sharply in 2016.
With all the intense competitions among each other, Canadian Solar Inc. (Canadian Solar), JA Solar Holdings Co., Ltd. (JA Solar), Golden Concord Holdings Ltd, (GCL), Yingli Green Energy Holding Co., Ltd. (Yingli Green) and Wuxi Suntech Power Co., Ltd. (Suntech) all became a member of the top 10 PV modules manufacturers in the world.
In fact, JinkoSolar, the top 1 enterprise this time, was always a follower in the industry.
Since 2014, JinkoSolar has tried to keep the trend of “great shipments”. In 2nd quarter of 2016, its shipments of PV solar modules reached 1,716 MW, recording a new high and refreshing its historical peak of 1,709.9 MW shipments in 4th quarter of 2015.
Trina Solar had the shipment of 1,658.3 MW while Canadian Solar shipped 1,290 MV of PV modules in 2nd quarter of 2016.
GCL, the most unexpected dark horse in PV industry in the past ten years, also performed very well. According to its 2016 semi-annual report, its revenue reached RMB 6.71 billion in the first half year of 2016, up 88.04% YoY. However, the net profit belonged to shareholders of the listed companies was RMB193 million, only up 2.77% YoY. In 2015, GCL became the world No.7 PV modules manufacturer.
In addition to the excellent performance of polycrystalline silicon, Xi'an LONGi Silicon Materials Corp., the leading monocrystalline silicon company in the world, has become a biggest gainer in the PV industry with its net profit belonged to shareholders of the listed companies of over RMB830 million, up 630% YoY.
According to the reports from the above companies which listed top 3 in the world, the strong demand came from the US and China in this quarter while the emerging market from Southeast Asia, India and North America also helped push the demand for the PV modules.
Compared to the previous awkward situation of increasing in shipment but not profits, both the shipments and profits of the PV enterprises rose significantly in 2016.
The total revenue of JinkoSolar was USD896.1 million in 2nd quarter of 2016, up 86.1% YoY, with the gross profit of USD182. 4 million and the gross profit rate of 20.4%.
The gross profit of Trina Solar was USD176.3 million with the rate of 18.3% in 2nd quarter of 2016, down 20% compared to the same period in 2015. The rising part of the net profit was attributed to its increasing shipments from its factories in Thailand to the US, which helped avoiding the anti-dumping tariff.
As for Canadian Solar, its net revenue reached USD805.9 million in 2nd quarter of 2016, with the gross profit rate of 17.2%, 15.6% higher than that in 1st quarter of 2016.
All the CEO of PV giants have attributed the increasing of gross profit rate to the falling manufacturing cost of modules.
Gao Jifan, CEO of Trina Solar, stated that: “The increasing of revenue in Trina solar is mainly pushed by strong demand from China before the adjustment of subsidy policy in China.”
“The 1st quarter of 2016 is a quite good beginning for the coming year in PV industry. The module shipments increased significantly which was pushed by the demand from three key markets-the US, China and India,” said Gao.
The giants seemed to have the same understanding in the industry. In the past month, they were all facing a same fact: the weakening of PV projects after “630” policy in China.
The “630” policy in China refers to the Notice on Improving Benchmark Price Policy of Photovoltaic Generation of Onshore Wind Power. According to the Notice, if the PV generation projects registered before 2016 cannot be completed to generating before June 30 2016, the electricity generated by the PV projects would be subsidized according to new standards. That’s to say, RMB0.1/kilowatt-hour, RMB0.07/kilowatt-hour and RMB0.1/kilowatt-hour would be decreased in subsidies in different regions for the PV generating projects.
Chen Kangping, CEO of JinkoSolar, stated that the modules shipments hit a historical high record in 2nd quarter of 2016, surpassing the peak of what JinkoSolar predicted. Though the China PV industry is facing difficulties in the coming months, the global demand is predicted to be strong.
“JinkoSolar would keep benefiting from the great development in the first half year of 2016,” said Chen.
Compared to some weaker rival PV enterprises from China, the China PV giants realized market internationalization of their products earlier as to offset the risks brought by the falling orders from domestic market.
Take Canadian Solar as an example, in 2nd quarter of 2016, the sales of modules accounted for 47.6% of the total net revenue in the USA; 39.5% in Asia and 12.9% in Europe and other regions.
In addition to the shipment task, the solar PV stations and related investment is also another task for different PV giants in China.
According to the announcement from Canadian Solar, its goal for revenue in 2016 has increased to USD3 billion – USD3.2 billion from USD2.9 billion-USD3.1 billion. According to some insider of Canadian Solar, Canadian Solar is planning to sell more PV stations in the second half year of 2016.
Qu Xiaohua, president and CEO of Canadian Solar, once stated that in the future, Canadian Solar would adopt a strategy in both keeping and selling some of its projects to make sure the flexibility of its business and to balance its cash flow.
According to the above insider from Canadian Solar, the capacity of its current solar stations is about 438MWp with the possible resale volume of about USD950 million. Canadian Solar is also planning to sell some of its asset of PV plants. In the same time, there would be more solar PV plants to be put into operation.
However, it may be difficult for the constructing PV projects to receive permission and approval of using the country’s power grid, which has become a risk which most of PV enterprises could not neglect.
Two years after Shunfeng International Clean Energy Group acquiring Suntech, Suntech has rebuilt its brand again and the global supply network has been rebuilt and recovered.
Insider from Yingli Green stated that, currently, Yingli Green no longer only aimed for the high shipment because getting rid of debts has become the key task for Yingli Green. Yingling Green is planning on its reorganization and re-born Yingli Green is on its way.
Though the PV industry is still worrying on the overcapacity, the China PV giants haven’t stopped their way on expanding.
Trina Solar, the biggest solar modules producer in the globe for two years, announced to exit Minimum Import Price (MIP) and got officially confirmed by European Commission in the beginning of 2016. Soon it began to speed up its layout in Southeast Asia and India; on one hand, it could avoid anti-dumping and anti-subsidy through importing solar modules to Europe from Southeast Asia and India; on the other hand, it could capture the market in the invested countries like India.
Canadian Solar invested on both the upstream and downstream of the PV industry. It became a shareholder in Suzhou iSilver Materials Co., Ltd., a sizing agent enterprise in China. Later, it cooperated with GCL to construct silicon wafer plants. Currently, Canadian Solar has started its project of silicon wafer, batteries and modules of the capacity of 1GW respectively in Luoyang, Henan. In overseas, Canadian Solar has its capacity layout in Canada, Vietnam, Indonesia, Brazil and Southeast Asia with the total capacity of over 1,500 MW.
Canadian Solar also stated that it is constructing a new PV battery production line of the capacity of 400 MW in Southeast Asia, which is predicted to be into operation in the second half year of 2016.
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