The first quarter is the traditional off-season for the photovoltaic industry, coupled with the continuous decline in industry chain prices, resulting in widespread losses in the industry. However, as an integrated enterprise with a global layout, Jingke Energy (688223. SH) still achieved profitability in the first quarter of this year, with a total shipment volume increasing by 51.19% compared to the same period last year, and a net profit of 1.176 billion yuan, making it the "profit king" in the photovoltaic industry.
"The current price should be at the bottom, with signs of recovery in the third and fourth quarters. Performance differentiation and accelerated capacity clearance may lead to some individuals continuing to compete for lower prices, but even lower prices have no logical basis and are unsustainable," Qian Jing, Vice President of Jingke Energy, told Time Finance during this year's SNEC exhibition.
Industry signs of recovery may appear in the third and fourth quarters
In the first quarter of 2024, Jingke Energy's revenue was 23.084 billion yuan, with a net profit attributable to the parent company of 1.176 billion yuan. The net profit excluding non parent companies decreased by 84.34% due to a decrease in the prices of photovoltaic modules in the industry, resulting in a decline in profits in the first quarter.
Jingke Energy is one of the few photovoltaic companies listed on the A-share market that is still profitable. At present, the competition in the photovoltaic market is fierce, and the overall prices of the main industry chain are at a low level, with significant differences in profit levels among different markets.
Qian Jing told Time Finance that the current prices of the photovoltaic industry should have reached the bottom. Basically, there are very few profitable enterprises in the entire industry chain, and even the profits are very thin. It is unlikely that the prices of the photovoltaic industry will continue to be lower.
The recovery of the industry may occur in the third and fourth quarters, and the true turning point may take longer. In the case of joint recovery, Jingke Energy can profit more with its own advantages. Qian Jing believes that.
Jingke Energy stated that as an integrated enterprise with a global layout, its short-term profitability is suppressed by some low-priced markets while ensuring long-term customer fulfillment. In the next stage, the company will strengthen proactive analysis, actively respond to industry competition, continuously optimize market strategies, and enhance technological and cost competitiveness.
For the overseas market issues that have received widespread attention in the photovoltaic industry recently, Jingke Energy, which has already laid out its presence around the world, is also prepared. Time Finance has learned that, in addition to its Southeast Asian factories, Jingke Energy's 2GW component production capacity in the United States has been put into operation.
Qian Jing clearly pointed out that the problems encountered by everyone in overseas markets are similar. Under the same pressure or risk, Jingke Energy is relatively prepared. "In 2018, we already had factories in the United States, and at the same time, Jingke Energy has a large overseas marketing system, which allows for flexible inventory adjustments. The majority of the 2GW component production capacity in the United States relies on subsidies from the United States, 'wool comes from sheep', setting up factories in the United States and using subsidies from the United States to increase component prices."
In terms of shipment volume, in the first quarter of 2024, Jingke Energy's shipment volume continued to grow, with a total shipment volume of 21907MW, including 19993MW of component shipments and 1914MW of silicon and battery shipments, with a total shipment volume increasing by 51.19% compared to the same period last year.
Jingke Energy expects that, against the backdrop of strong demand for photovoltaic installed capacity and full orders in hand, the shipment volume of modules in the second quarter will be between 24GW and 26GW.
The most crucial thing is marketization ability
"Benefiting from saturated orders and high opening rates, Jinko Energy will maintain normal production and stable personnel, which is also the most practical manifestation of corporate social responsibility." Qian Jing clearly stated that this year's shipment target is 100GW~110GW, and as of now, the order volume has exceeded 80%. Now, preparations have been made for projects in the coming and coming years.
Especially in the present, the most crucial factor is marketization ability. When supply is in short supply, production capacity equals output, and any product can be sold. When overall supply exceeds demand, brand influence, market diversity, customer quantity, customer base, and other factors are crucial. With the wide distribution of global marketing channels, no matter what short-term problems occur in any region, we will find gaps that can be filled in other regions. Qian Jing pointed out.
"Policy trends, capacity clearance, and performance differentiation will all accelerate the industry's so-called reshuffle. Despite experiencing ups and downs, few have truly exited the photovoltaic industry over the years. In the face of such a situation, we remain vigilant and do our best."
Times Finance has noticed that under the trend of integrating light and storage, Jingke Energy's energy storage business has not yet generated revenue in 2023.
Regarding this, Wu Dianfeng, the General Manager of the Energy Storage Division of Jingke Energy, told Time Finance, "Our energy storage business is indeed just starting. As we all know, the industry is currently facing fierce competition, and at this stage, we firmly value the trend of energy storage. Energy storage is bound to be a big mountain, and we are now more focused on refining our products and technologies."
"In terms of energy storage, some good domestic and international orders have landed this year, especially large overseas orders are also being negotiated, and there should be some growth in this area this year," Wu Dianfeng believes.
"At present, both industrial and commercial energy storage and large-scale energy storage are in a downward trend in prices. In the long run, energy storage prices will continue to decline, and only when energy investors can benefit from installing energy storage can the energy storage market truly usher in spring. In this process, low-quality enterprises may be eliminated, and only high-quality, cost controlled enterprises can survive in the market."