1) Can you briefly summarize what factors enabled you to become the world’s #1 module maker?
It’s been a spectacular year for JinkoSolar, it has become the world’s largest solar module manufacturer for the first time and has achieved the industry leading gross margin for 14 consecutive quarters. In addition, JinkoSolar holds the world record of 60-cell Mono (343.9W) and Poly (334.5W) module power output, and is the first to achieve 100% in compliance with IEC62804 double 85 anti-PID standards. Those achievements reflect on JinkoSolar’s continuous investment in R&D and high standard quality control. Having the industry leading cost structure, JinkoSolar is able to maintain 20% plus margins despite being impacted by the price war. JinkoSolar has robust pipeline to fulfill higher factory utilization and reduce inventory level.
Due to the over-supplying market situation in 2016, high quality and high efficient modules are becoming essential for investors and developers. JinkoSolar has become the biggest winner of the 2016 China “Top Runner” program, which aims to promote the use of high-efficiency PV products and to accelerate PV industry transformation. Winning a 400MW project put Jinko on top of PV players and demonstrates that JinkoSolar’s module efficiency and quality have been recognized as the market leader. JinkoSolar has always been a pioneer in market development and branding, having secured its leading market position in China and USA. It has also delivered great news in emerging markets this year, securing number 1 market position in several countries. This is how Jinko differentiates among competitors and is the driving force for its continuous growth in the coming years.
2) Can you talk more about price? JinkoSolar has always been one of the lowest-cost module suppliers among tier 1 manufacturers. What are some of the factors behind this?
JinkoSolar’s success in its vertically integrated model compassing from wafer, cell, module, system to downstream solar power development, supply chain advantage is due to its relationship with Tier1 raw material suppliers worldwide. In addition to its capacity scale, JinkoSolar is able to keep its gross margin above 20% for consecutive years. JinkoSolar has been investing heavily in R&D, whilst holding the world record of both Poly (334.5W) and Mono (343.9W) 60-cell module power output. JinkoSolar delivers higher power its than peers for commercialized products. More importantly, accurate and consistent power output of panels reduces cost in power waste and return rates. As the world’s largest solar module manufacturer, co-chair of B20 Germany 2017 and an advocator of the Paris Agreement, JinkoSolar is obligated to work towards driving down the cost of solar energy by continuing to improve its production and the quality of R&D. Higher power output is meaningful only when the technology can be afforded by consumers, and that’s what JinkoSolar’s R&D team been focusing on.
3) Which markets have been important for JinkoSolar’s shipments?
JinkoSolar has been thriving at all fronts, the total PV installation in 2016 will be around 67-70 GW, JinkoSolar holds almost 10% of the global market share, and is expected to be world’s largest PV brand in 2016. China, US, Latin America, Japan and India are the most important markets for JinkoSolar. JinkoSolar enjoys No.1 market share in over 15 individual key solar PV countries.
4) Regarding the Chinese market, what do you see for the future now that China has reduced its long-term installation target?
We predict that installation capacity in 2017 will keep flat to 2016, especially in first half of the year. The demand in China will still be very robust. Due to the cost reduction of solar systems over the years, and the increasing number of countries reaching grid parity while remaining independent from FiT, we are confident solar will undercut fossil fuel in the coming few years. There’s no doubt that solar energy will become a primary energy source worldwide, and JinkoSolar will be prepared for that.