JinkoSolar(US:JKS)2022-03-23 16:37Financial Data and Key Metrics Changes - Total revenue for Q4 2021 was $2.57 billion, representing a 91% increase sequentially and a 74% increase year-over-year [19] - Gross profit doubled sequentially, with operating profit more than quadrupling and non-GAAP net profit increasing by approximately 13 times [19] - For the full year 2021, total revenues were $6.41 billion, up 16.2% year-over-year, with gross profit around $1 billion, an increase of about 8% year-over-year [22] Business Line Data and Key Metrics Changes - Total module shipments in Q4 2021 were 9.7 gigawatts, with module shipments alone at 9 gigawatts, showing significant growth compared to previous quarters [15] - The proportion of distributed generation (DG) in shipments is expected to reach around 40% in 2022, up from 30% to 35% in the previous year [17][78] Market Data and Key Metrics Changes - China's installation capacity for solar energy reached 55 gigawatts in 2021, with distributed generation contributing more than half of new installations [10] - The European market is expected to maintain strong growth momentum, with demand projected to exceed 30 gigawatts soon [38] Company Strategy and Development Direction - The company aims to enhance its competitiveness in technology and global marketing networks while reinforcing its leadership in N-type products [12] - A 7-gigawatt mono wafer plant in Vietnam became operational in Q1 2022, consolidating the company's global supply chain advantage [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the development prospects in the distributed generation market, expecting continued strong growth in the PV industry due to energy transformation needs [10] - The company anticipates total shipments for Q1 2022 to be in the range of 7.5 to 8 gigawatts, with full-year shipments expected to be between 35 to 40 gigawatts [13] Other Important Information - The company completed its listing on the Shanghai Stock Exchange Science and Technology Innovation Board, providing greater momentum for technology development [9] - Cash and cash equivalents at the end of Q4 2021 were $1.4 billion, up from $1.14 billion at the end of Q3 2021 [23] Q&A Session Summary Question: Guidance for Q1 and full year - Management provided shipment guidance but did not give gross margin guidance due to supply chain volatility [25][26] Question: Margin expectations for Q1 - Margins are expected to be flat or slightly lower due to high polysilicon prices [36] Question: Demand in Europe - Stronger-than-expected demand has been observed in Europe, with expectations for the market to exceed 30 gigawatts [38] Question: Operating expenses increase - The increase in G&A expenses was attributed to year-end bonuses and IPO-related costs, which are not recurring [54] Question: Shipping costs and pricing flexibility - The company has been able to pass on a majority of shipping costs to customers due to high demand for solar modules [58] Question: N-type product capacity - The company currently has 16 gigawatts of N-type capacity operational, with no immediate plans for further expansion this year [66][70]