JinkoSolar Holding Co., Ltd. (NYSE:JKS) Q2 2020 Earnings Conference Call - Final Transcript
Sep 23, 2020 • 08:00 am ET
Hello, ladies and gentlemen, and thank you for standing by for JinkoSolar Holding Co., Ltd. Second Quarter 2020 Earnings Conference Call. [Operator Instructions] As a reminder, today's conference call is being recorded.
I would now like to turn the meeting over to your host for today call, Ms. Ripple Zhang, JinkoSolar Investor Relations Manager. Please proceed, Ripple.
Thank you, operator. Thank you, everyone, for joining us today for JinkoSolar's second quarter 2020 earnings conference call. The Company's results were released earlier today and available on the Company's IR website at www.jinkosolar.com, as well as on Newswire services. We have also provided a supplemental presentation for today's earnings call, which can also be found on the IR website.
On the call today from JinkoSolar are Mr. Chen, Kangping, Chief Executive Officer; Mr. Charlie Cao, Chief Financial Officer; and Mr. Gener Miao, Chief Marketing Officer. Mr. Chen will discuss JinkoSolar's business operations and Company highlights, followed by Mr. Miao, who will talk about sales and marketing. And then Mr. Cao, who will go through the financials. They will all be available to answer your questions during the Q&A session that follows.
Please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, our future results may be materially different from the views expressed today. Further information regarding this and other risks is included in JinkoSolar's public filings with the Securities and Exchange Commission. JinkoSolar does not assume any obligation to update any forward-looking statements, except as required under the applicable law.
It's now my pleasure to introduce Mr. Chen, Kangping, CEO of JinkoSolar. Mr. Chen will speak in Mandarin, and I will translate his comments into English. Please go ahead, Mr. Chen.
[Foreign Speech] Thank you, Ripple. Good morning and good evening to everyone, and thank you for joining us today.
[Foreign Speech] During the second quarter, our total solar module shipments reached 4,469 megawatt, total revenues were $1.2 billion, and gross margin was 17.9%. Demand in the overseas markets was negatively impacted due to the COVID-19 pandemic. Nevertheless, our high-quality products, well-developed global marketing network, and premium customer service stood out among the competition and helped maintain the growth momentum. In shipment volume, most our orders were executed on time and we were able to increase our market share.
[Foreign Speech] At the start of the second quarter, weak demand from the overseas market led to a drop in module prices. Many upstream manufacturing companies controlled inventory in order to reduce risks, leading to a decline in raw material prices. As a result, stiff competition in the solar supply chain made it tough for companies with limited product, competitiveness and cost control capabilities to remain competitive. These smaller companies have had to successively reduce their capacity utilization or withdraw from the market completely.
Costs in the solar supply chain increased in the latter part of the second quarter, in