JinkoSolar Holding announced its unaudited financial results for the first quarter ended March 31, 2015. Total revenues were RMB2.7 billion ($443.5 million).
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This is representing a decrease of 7.5% from RMB3.0 billion in the fourth quarter of 2014 and an increase of 36.5% from RMB2.0 billion in the first quarter of 2014.
The sequential decrease in revenues was primarily attributable to a decrease in shipments of solar modules primarily as a result of seasonality and slightly decreasing ASPs due to the depreciation of the Euro and Japanese Yen against the RMB.
The year-over-year increase in total revenues was mainly attributable to the increases in shipments of solar modules and electricity revenues from solar projects.
During the first quarter of 2015, revenues from downstream solar power projects were RMB102.1 million ($16.5 million), an increase of 26.9% from the fourth quarter of 2014 and an increase of 111.1% from the first quarter of 2014, of which includes the electricity revenue of RMB99.4 million ($16.0 million).
The increase in solar power project revenues was primarily due to the increase in number and capacity of the company's solar projects. Gross profit for solar power project revenues was RMB43.7 million ($7.1 million) during the first quarter of 2015, representing a gross margin of 42.8%.
The company has entered into certain sales contracts with retainage terms since the second half of 2012, under which customers were allowed to withhold payment of 5% to 10% of the full contract price as retainage for the specified period which generally ranges from one year to two years. The company does not recognize such retainage until the customers pay it after the Retainage Period expires.
The total amounts of retainage under the Retainage Contracts that were not recognized as revenue were RMB7.7 million ($1.2 million) and RMB2.4 million for the first quarter of 2015 and the fourth quarter of 2014, respectively. During the first quarter of 2015, the company received retainage payment of RMB0.5 million and recognized it as revenue.
As of March 31, 2015, the cumulative amount of retainage that had not yet been recognized as revenue was RMB201.6 million ($32.5 million). ■