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Nov 20 (Reuters) - JinkoSolar Holding Co Ltd reported lower-than-expected quarterly revenue, hurt by a fall in the average selling price of solar modules, sending its shares down as much as 8.6 percent premarket.
The company’s gross margins fell to 20.6 percent in the third quarter, from 22.3 percent a year earlier, as it shipped more modules at lower prices to China.
JinkoSolar said it expected total solar module shipments of 1,030-1,120 megawatts (MW) in the fourth quarter, up from 758.1 MW in the third quarter.
However, the forecast includes 300-350 MW of modules for company-owned downstream projects, for which JinkoSolar will not recognize any revenue.
JinkoSolar has been expanding its downstream business of building solar plants to combat low prices of solar panels.
The U.S. government slapped solar companies with manufacturing facilities in China with anti-dumping duties earlier this year, in an attempt to stop U.S. markets being flooded with cheaper solar products.
The duties were subsequently extended to Taiwan after some Chinese panel makers tried to sidestep the tariffs by moving production to that country.
However, JinkoSolar will continue to build its position in the United States, despite “tariff uncertainties”, Chief Executive Kangping Chen said on Thursday.
The Shangrao, China-based company reiterated its 2014 solar module shipment forecast of 2.9-3.2 gigawatts (GW).
JinkoSolar reported a better-than-expected profit in the third quarter ended Sept. 30, helped by strong demand for solar panels.
Total solar product shipments jumped 36.5 percent to 708.2 MW in the quarter from a year earlier.
Net income attributable to JinkoSolar rose 170 percent to $45.7 million, or $1.32 per American Depositary Share, beating the average analyst estimate of 71 cents per ADS, according to Thomson Reuters I/B/E/S.
Revenue rose 30 percent to $417.3 million, but fell short of the analysts’ average expectation of $459.84 million.
JinkoSolar’s shares were down 4.3 percent at $22.51 in premarket trading on Wednesday. Up to Wednesday’s close, the stock had fallen about 19.7 percent this year. (Reporting By Shubhankar Chakravorty in Bangalore; Editing by Savio D‘Souza and Simon Jennings)