JinkoSolar Holding Co., Ltd (NASDAQ:JKS) Q2 2019 Earnings Conference Call Transcript

Aug 30, 2019 • 08:00 am ET

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JinkoSolar Holding Co., Ltd (NASDAQ:JKS) Q2 2019 Earnings Conference Call Transcript

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Presentation
Executive
Kangping Chen

subsidies for 2019. This was a follow-up to their May announcement of the first batch of wind power and the PV grid parity project. China is expected to install 40 gigawatt this year. Bids for UHV supported PV projects have already begun as the domestic market regains growth momentum.

We are rapidly approaching grid parity with the better results for projects such as Dalat [Phonetic] Top Runner project in Neihuang province, coming in on power with local traditional energy. Based on this, we expected China's demand will continue to grow steadily in 2020.

[Foreign Speech] 2019 is a milestone for the global solar industry as grid parity rapidly approaches. A number of emerging overseas markets are quickly reaching gigawatt levels as the market increasingly diversifies away from traditional mature markets. The costs of PV power continues to decline, resulting in lower bidding prices, which are increasingly becoming more competitive with thermal power generation, driven by technological innovation. We expected a proportion of PV grid parity project to increase over the next few years. We are optimistic that global demand will remain strong and is sustainable over the long term.

[Foreign Speech] I will let Gener give you more color on the market later. [Foreign Speech] We significantly increased our investment in expanding our high efficiency mono production capacity during this quarter. This is mainly being driven by our production facility in Leshan, which begun phase 1 production at the end of June and is expected to reach full capacity in the fourth quarter and will expand our total mono wafer capacity to 11.5 gigawatt. Preparations for the 5 gigawatt phase 2 capacity expansion in Leshan were currently underway. The rapid growing of mono wafer production capacity can significantly increase the proportion of overall in-house integrated capacity and improve gross margin.

[Foreign Speech] Our in-house high efficiency annual silicon wafer solar cell and solar module production capacity has reached 10.5 gigawatt, 7.4 gigawatt, and 12.6 gigawatt, respectively by the end of the second quarter of 2019, which include 6.5 gigawatt of mono wafer capacity and 5.8 gigawatt of PERC cell capacity. By the end of 2019, we expect our in-house annual silicon wafer, solar cell and solar module production capacity to reach 15 gigawatt, 10.5 gigawatt, and 16 gigawatt respectively, which includes 11.5 gigawatt of mono capacity, 9.7 gigawatt of PERC cell capacity and 500 megawatt of N-type cell capacity.

[Foreign Speech] We believe that the only way forward is to continue investing in the technical development and optimization -- optimizing the cost structure. Our expanded capacity provides us with a significant competitive advantage when it comes to the performance of our equipment, automation, levels and extendable thermal fields which perform well in product qualified rate and oxygen content index in the industry, while the latest sale improvements has been on the highly efficient N-type cells with 800 megawatt capacity and Hydride Oxide Thin Film technology. For modules, our latest innovative product in the Swan bifacial module with a DuPont Tedlar-based