Solar panel maker JinkoSolar Holding Co. Ltd. (JKS.US; 688223.SH) said on Wednesday it returned to profitability in the third quarter after falling into the red in the previous three-month period. But its revenue continued to fall as prices for its products plummeted due to huge overcapacity in the solar panel industry.
The company reported its third-quarter revenue fell 23% year-on-year to 24.5 billion yuan ($3.4 billion), according to its latest results. It reported a profit of 22.5 million yuan for the period, reversing a loss of 100.7 million yuan in the previous quarter but still far below the 1.32 billion yuan profit it reported in the third quarter of last year.
The company’s shipments in the latest quarter grew 14.7% year-on-year to 25.9 MW, slowing from 36% growth in the previous quarter, as demand eased with slowing construction of new solar farms after several years of rapid growth. JinkoSolar’s U.S.-listed shares rose nearly 5% in Wednesday trade after the results were announced, but the stock is still down 31% this year.
By Doug Young
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