The Chinese module maker saw its operating loss widen despite a modest sequential revenue increase, weighed down by a year-over-year decline in shipments.

JinkoSolar Holding Co., Ltd. posted a net loss of $102.8 million (RMB697 million) in the second quarter, while its operating loss widened to $211.7 million (RMB1.44 billion), according to results released by the Chinese solar module maker. Total revenue reached $1.82 billion (RMB12.36 billion), up 0.9% sequentially but down 31.3% year over year, a decline the company attributed to lower module shipment volumes.

Shipments Decline Year Over Year

Quarterly module shipments reached 15,961 megawatts (MW), up 16.7% from the first quarter but down 34.4% from a year earlier. For the first half of the year, total module shipments reached 29.6 gigawatts (GW), with about 70% sold overseas. This shift toward export markets comes as other solar players continue expanding, such as ACME Solar, which secured $179 million for a solar project in Rajasthan, or Tenergie, which secured €150 million in financing for 350 solar projects in France.

Exceptional Gains Cushion The Impact

JinkoSolar's investment portfolio partially offset the operating losses. A gain from the change in fair value of long-term investments came to $54.6 million (RMB370.3 million), tied to a portfolio company's initial public offering during the quarter.

Separately, the company sold a 75.1% stake in its US subsidiary for $191.5 million (RMB1.31 billion) in cash, booking a pre-tax gain of $34.9 million (RMB236.6 million). The sale is part of a broader repositioning of the group's activities in the North American market.

Dividend Maintained Despite Losses

The board declared a cash dividend of $0.375 per ordinary share in June. The decision comes as the group navigates a period of margin pressure, marked by persistent overcapacity in China's photovoltaic industry and falling module prices worldwide.

The second-quarter results confirm the revenue contraction trend observed at JinkoSolar over the past year, while asset sales and financial gains continue to serve as a cushion for the group's accounts.