(Yicai) Aug. 15 -- Shares in Jinko Solar plunged to the lowest level since April 2022 today even after the world’s second-largest maker of solar panels said that net profit in the first six months had more than quadrupled from a year earlier as investors worry about over supply flooding the market.

Jinko Solar’s share price [SHA:688223] closed down 11.9 percent at CNY10.42 (USD1.43). Earlier in the day it sank 12.8 percent to CNY10.32. The stock has lost 45 percent of its value since it peaked at CNY19.35 (USD2.66) in August last year as concerns about overcapacity dampen the share price.

Jinko Solar’s net profit surged 324.5 percent in the six months ended June 30 from the same time last year to CNY3.8 billion (USD522.1 million), the unit of Jinko Solar Holding said in its latest earnings report released yesterday. Revenue soared 60.5 percent to CNY53.6 billion (USD7.4 billion).

The high growth is due to strong sales of the company’s N-type tunnel oxide passivated contact high-efficiency cells and modules which have greater photoelectric conversion efficiency and a higher gross profit margin, Jinko Solar said.

Jinko Solar is the world’s biggest producer of N-type modules and it outperforms its competitors in terms of delivery speeds and special offers. And the Shanghai-based firm is not even able to keep up with demand.

Jinko Solar shipped 33.1 gigawatts of solar products in the first half, of which about 30.8 GW were panels and 16.4 GW were N-type modules. And it expects to deliver between 19 GW and 21 GW of modules in the third quarter as more production capacity comes online, the report said.

The firm is on track to hit its annual sales target of between 70 GW and 75 GW early this year, with N-type modules accounting for 60 percent of deliveries, it said. Last year, Jinko Solar only sold 44.5 GW worth.

Greater Capacity

Jinko Solar is also planning to raise CNY9.7 billion (USD1.3 billion) through a private placement to finance part of its CNY56 billion PV industrial park that it announced earlier this year, the firm said in a fundraising proposal released yesterday.

The industrial park, which will be located in northern Shanxi province, will produce monocrystalline silicon rods, wafers, cells, and modules, the company said in May. Each product type will have an annual production capacity of 56 GW. The project, which will be built in four phases, should start to come online from the first quarter next year and will be finished by the end of 2025.

CNY7.2 billion (USD988 million) of the proceeds will go towards the industrial park and the rest will be used to supplement working capital, it added.

Editor: Kim Taylor