CNSTOCK.COM | With Sufficient Projects in Reserve, Jinko Power Goes All Out in Distributed Photovoltaic Power Generation

2021-08-20 root in:CNSTOCK.COM

Jinko Power (601778) released its Semi-Annual Report 2021 on the evening of Aug. 19. During the reporting period, the company achieved 1.781 billion yuan of operating revenue, with a year-on-year growth of 2.62%, including 1.372 billion yuan of power generation revenue, 408 million yuan of EPC revenue, 170 million yuan of net profit attributable to shareholders of the listed company. According to Jinko Power, the decrease in net profit was mainly due to the decrease in gross profit of power generation business caused by the grid connection of purchasing power parity projects and bidding projects in succession and the sale of subsidized projects during the reporting period.

Data show that by the end of the reporting period, Jinko Power held 330 photovoltaic power plants with a total installed capacity of about 2,955.90MW, including 2,135.54MW of centralized photovoltaic power plants and 820.36MW of distributed photovoltaic power plants. During the reporting period, the total power generation was about 1.708 billion KWH.

In the face of increasingly fierce market competition, Jinko Power keeps consolidating its core advantages in the field of project development. According to the Semi-Annual Report, as of the end of June this year, the scale of photovoltaic power plants under construction in China was about 1,257.13MW, and the scale of photovoltaic power plants under construction overseas was about 2,302MW (including joint-stock projects). In the first six months of this year, Jinko Power obtained 454.47MW of provincial project development quotas and signed 10.8GW of base development agreements. Sufficient projects in reserve provide more possibilities for the company's business development and cooperation.

In response to the new revolution of distributed energy, Jinko Power has made all-round efforts. It is reported that the company set up a Distributed Photovoltaic Power Business Unit at the end of 2020 to expand distributed photovoltaic power business in depth. In the first half of 2021, the company focused on key areas to make strategic arrangements and applied for countywide rooftop distributed photovoltaic power plant development demonstration projects as a whole.

At the same time, the company actively develops integrated energy services for industrial and commercial customers and vigorously promotes service innovation centering on emerging services such as energy storage and BIPV through distributed project cooperation. So far, the company has signed strategic cooperation agreements with the steel structure leader USAS Building System (Shanghai) Co., Ltd., and Arctech Power Development (Suzhou) Co., Ltd., a wholly-owned subsidiary of the mounting leader Jiangsu Arctech Solar Technology Co., Ltd., to jointly explore business in BIPV product development and market application.

In integrated energy services, Jinko Power also has outstanding performance. From Jan. to June of 2021, the company delivered 2.42 billion KWH of contract capacity and signed contracts with 1,162 customers, including 663 new customers, expanded business to Shandong, Sichuan and Anhui and conducted transactions there. Its business now covers 35 cities in five provinces.

In the future, development will be the company’s fulcrum to leverage the entire photovoltaic value chain, while consolidating its advantages in formula one (photovoltaic power plant development), it will actively explore the practice and implementation in formula two (energy storage, BIPV and other emerging services) through projects.