JinkoSolar Holding Co., a Chinese solar manufacturer, posted its highest quarterly earnings in almost three years and forecast an increase in shipments this year.
Fourth-quarter net income of 164.3 million yuan ($26.7 million) compared with a loss of 761.1 million yuan in the year-earlier period, the Shangrao, China-based company said today in a statement.
The solar manufacturer is raising production and buying up distressed manufacturing operations of smaller rivals. Gross margins for JinkoSolar’s downstream projects in China exceeded 60 percent and rising global demand helped boost the company’s overall gross margins to 24.7 percent, Chief Executive Officer Chen Kangping said on a call with analysts.
“One of the more exciting developments continued to be our aggressive expansion downstream,” he said. The company completed 213 megawatts of projects using its panels last year and expects to finish more than 400 megawatts this year.
The projects helped JinkoSolar reach a record 1,933 megawatts shipped last year. Shipments beat its forecast by 10.5 percent and were almost 63 percent higher than in 2012. It expects 2014 sales to rise to 2,300 to 2,500 megawatts.
The company is devoting a “substantial amount of resources” to transform itself into a “one-stop” energy solution provider, Chen said.
JinkoSolar is “optimistic” about spinning off projects in an initial public offering of a so-called yieldco investment vehicle in either Hong Kong or New York either by the end of the year or early in 2015, Chief Financial Officer Zhang Longgen said on the call.
The company was the first large Chinese solar maker to emerge from a two-year slump caused by oversupply. It posted a net profit in the second quarter.
JinkoSolar fell 6.1 percent to $30.72 at the close in New York.