JinkoSolar Holding Co., Ltd (NASDAQ:JKS) Q2 2019 Earnings Conference Call - Final Transcript
Aug 30, 2019 • 08:00 am ET
Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. [Operator Instructions] Your first question is from Philip Shen from Roth Capital Partners. Please go ahead.
Hi, this is Irwin Teg [Phonetic]. I'm on for Philip today. Hope you guys are doing well. My first question is from Q1, you thought that 60% of your Q1 shipments were for non-subsidized project and as much as 50% of 2019 shipments could be for non-subsidized demand. How much of your Q2 shipments do you believe serve on subsidized markets? And what's your latest view for second half 2019 and possibly 2020?
I think you are talking about, you know, the market without subsidy, right, grid parity. And the...
I think the trend is there, you know, the story is becoming more and more competitive and the most other regions are reaching to the grid parity markets. And back to your specific question. If you take China and Japan as subsidy supported market this year and we think our shipment quarter-by-quarter, the shipments ratings without subsidy increased step by step. And the second quarter, roughly 70% to 80%. And then looking to next year, China will be the biggest region to reaching grid parities. And this year we estimate China roughly 10% is projects without subsidy. And next year and with the government policy supported and the lower system costs. And we believe it's -- will be a huge lift next year in China for the projects without subsidy.
Okay. Thank you. My next question is, what is your latest view of China demand in Q1 and Q2 for 2020? Have you heard when the government may release its next subsidy regime? And what do you think it looks like?
Yes. For China market, as we said just now, China market will continue to be strong, not only in the second half 2019, but also in the 2020. So one part is there will be a lot of projects naturally and they'll continue to construct and try to get a grid connection in the first half of 2020. Meanwhile, there will -- there are a lot of -- let's say, projects in the plan, which is grid parity projects, and should be expected to be constructed by the year 2020. Regarding the rumors of the new schemes, we have heard of several versions of it, but I think we should wait for the official announcement.
Okay, fair enough. And then my last question, and I'll pass it on. Last quarter you mentioned capex throughout the year was going to be about $450 million. We calculate about $212 million for the back half of 2019. Can you give me some more color on the capex for Q3 and Q4? Thank you.
I think the total capex this year. You're right, roughly $450 million. And we have spended, I think roughly 50% of the total capex. And no, the remaining part, 50% will be spread over third quarter and fourth quarter. And