On the evening of February 29th, Jingke Energy released the latest investor relations activity record, providing answers to the company's production schedule, capital expenditure plan, and other related content, and expressing optimism about market demand in 2024.
On February 27th, Jingke Energy disclosed its 2023 performance report, with a revenue of 118.682 billion yuan, a year-on-year increase of 43.55%; The net profit attributable to the parent company was 7.486 billion yuan, a year-on-year increase of 154.97%. On the same day, Jingke Energy also officially released its first Neo Green component produced using renewable energy.
Affected by the above factors, the stock price of Jingke Energy has improved. From February 27th to March 1st, the cumulative intraday stock price increase of Jingke Energy reached 4.7%.
Join the billion dollar revenue "club"
The photovoltaic industry in 2023 can be said to be a hot and cold duo. According to the latest data released by the China Photovoltaic Industry Association, the new installed capacity of photovoltaics in China reached 216.88 GW in 2023, a year-on-year increase of 148.1%, setting a new historical high. At the same time, the photovoltaic manufacturing sector is facing problems such as structural overcapacity and rapid price declines, resulting in a significant slowdown in output growth. Since the second half of last year, the situation has become increasingly severe. The "price war" has led to the phenomenon of bidding prices for photovoltaic modules and other links being lower than costs, causing significant damage to corporate profits and spreading industry anxiety and pessimism.
In this context, Jingke Energy has not been affected, and its performance in 2023 still achieved a strong increase, with its annual revenue even surpassing the 100 billion mark for the first time. According to financial data released within the industry, the company has become the fourth photovoltaic enterprise to join the "100 billion revenue club" after Tongwei Group, Longji Green Energy, and Trina Solar.
According to the lower limit of net profit in the performance report and forecast, among listed companies in the photovoltaic equipment industry, Jingke Energy's net profit in 2023 temporarily ranks second in the industry. According to financial report data, from 2018 to 2022, Jingke Energy achieved a total net profit attributable to shareholders of 6.78 billion yuan, and in 2023 alone, the net profit attributable to shareholders exceeded this total by approximately 1.17 billion yuan.
Regarding the significant growth in revenue and net profit in 2023, Jingke Energy stated that while the global total installed capacity of photovoltaics is steadily increasing, the demand for N-type advanced products in the photovoltaic market is gradually becoming mainstream. With the comprehensive advancement of technological change and the accelerated iteration of new and old production capacity, changes in industry supply and demand have led to an overall downward trend in terminal product prices. Faced with fierce competition in the face of industry cycle fluctuations, the company has always adhered to customer demand orientation, relying on the continuous leadership of N-type TOPCon technology and products, as well as advantages in global operation and integrated production capacity, to achieve rapid increase in N-type component shipments, driving a significant increase in operating performance compared to the same period last year.
Industry insiders also point out that Jingke Energy's leading advantage in N-type TOPCon technology and products is the main reason for its high growth in revenue, profit, and shipment volume.
The 2023 Review of the Development of the Photovoltaic Industry and the 2024 Outlook Report show that since August last year, N-type modules have rapidly increased in domestic photovoltaic bidding, with a monthly proportion of 70% from September to December.
As the earliest photovoltaic enterprise to enter the TOPCon track, Jingke Energy clearly has taken the fast train of N-type substitution. According to industry consulting firm statistics, in 2023, Jingke Energy's module shipments exceeded 75GW, with a market share of 14.5% to 15%, returning to the top spot on the list of photovoltaic module shipments. In the TOPCon field, the company holds approximately 40% of the market share with a sales volume of 45GW.
In terms of existing Perc production capacity, which is particularly challenging for photovoltaic companies, Jingke Energy is also more relaxed. According to the latest investor relations activity table, the company's production capacity is mainly N-type TOPCon, with less than 20% of the existing Perc battery production capacity, and there are currently many orders covering it. In the future, it will be processed within the scope of accounting standards based on market demand and operating conditions.
In addition, Jingke Energy also stated that as of the end of 2023, the integrated production costs of the company's N-type TOPCon and Perc were basically the same. In the future, with the continuous introduction of new N-type TOPCon battery efficiency improvement technologies and optimization of auxiliary material schemes, there is still significant room for N-type to improve efficiency and reduce costs.
According to third-party organizations, the global market share of N-type components is expected to increase from 20% to 30% in 2023 to 50% or even higher in 2024. Jingke Energy, with its technological and scale advantages in the N-type TOPCon field, will occupy a favorable position in the constantly expanding competition for market share in the N-type market.
Global layout is accelerating
With the increasingly fierce competition in the domestic photovoltaic manufacturing industry, overseas markets have become a battleground for photovoltaic enterprises, and Jingke Energy has taken "global layout and localized operation" as its key strategy.
In 2023, photovoltaics will become the "new three types" driving China's foreign trade exports. Data shows that driven by market demand, the export of photovoltaic products increased in the first 10 months of 2023. The export volume of silicon wafers, battery cells, and components was 55.7GW, 32.4GW, and 177.6GW, respectively, with year-on-year growth of 90%, 72%, and 34%.
Taking the main export product photovoltaic modules as an example, the 2023 global module shipment list released by Infolink shows that domestic photovoltaic enterprises, including Jingke Energy, Trina Solar, etc., have taken the top 9 positions. Among them, Jingke Energy won the first place in the fault with a score of over 75GW.
In addition to excellent product export performance, Jingke Energy is also the photovoltaic enterprise with the earliest overseas factory establishment and the largest overseas production capacity. As of the end of 2022, Jingke Energy has a leading vertical integrated production capacity of over 7GW of silicon wafers, battery cells, and modules overseas; By the end of 2023, Jingke's integrated production capacity overseas exceeded 12GW, and its overseas production capacity layout continued to accelerate.
As of now, Jingke Energy has established 14 production bases worldwide and has established a flexible supply chain and marketing layout on a global scale. The company has established local specialized sales teams in over 100 countries and regions worldwide, and its component products have served thousands of customers in over 180 countries worldwide.
Entering 2024, Jingke Energy stated that the company remains optimistic about market demand this year and expects global component demand to achieve a year-on-year growth of over 20%. Li Xiande, Chairman of Jingke Energy, believes that the demand in the Middle East market will continue to increase significantly in 2024. In addition, Jinko Energy's shipment volume in the United States will significantly increase, mainly due to the smooth customs clearance of Jinko's entry into the US market, and Jinko Energy is also the only Chinese photovoltaic enterprise that complies with anti circumvention investigations in the United States.
According to the analysis of Guosheng Securities, in the future, all links in the photovoltaic industry chain are expected to enter the stage of quality competition. For integrated component manufacturers, the "N-shaped structure" and "overseas proportion" are the key to maintaining production capacity competitiveness. Jingke Energy continues to expand its advanced production capacity and overseas layout, with significant advantages in the subsequent quality competition era.
It is worth noting that, unlike other photovoltaic companies competing to raise funds and expand production, Jingke Energy has clearly raised the reduction of asset liability ratio to a strategic height. At present, Jingke Energy has almost stopped all investment plans and only retained one project investment in Shanxi's major base construction and Vietnam, representing future manufacturing trends and overseas production and shipment to the US market, respectively.
