First Solar launches legal action against JinkoSolar for forecasting higher sales in 2025

First Solar, a solar panel manufacturer, forecasted higher sales for the current year and reported a rise of its fourth-quarter profits on Tuesday. It also announced that it had taken legal action against JinkoSolar over patent infringement.

Extended trading saw shares up by 3.8% to $153.00.

In November, the Biden administration imposed tariffs on imports of solar panels from four Southeast Asian countries after American manufacturers complained that companies were flooding markets with cheap products, which benefited U.S. firms such as First Solar, who produce locally.

Solar-generated electricity has become one of the fastest growing segments in the U.S. Energy Industry due to the strong demand of corporations and government to adopt cleaner energy sources and to combat climate change.

The company reported net income of 393 million dollars for the quarter ending December 31, an increase of about 13% over last year.

Separately the company announced that it had initiated legal action in the United States District Court of Delaware against Shanghai-based JinkoSolar, for infringement of TOPCon patents, a technology that improves the efficiency of solar panel.

First Solar acquired the patents through the acquisition of TetraSun by 2013.

Jason Dymbort, Executive Vice President of JinkoSolar, said: "Our interaction with JinkoSolar was unproductive. We are now forced to enforce our rights under the patent laws through legal action."

First Solar expects sales for the current year to be between $5.3 and $5.8 Billion, which is 32% more than last years' midpoint and above Wall Street's estimates of $5.52 Billion, according to LSEG. (Reporting from Tanay Dhumal, Bengaluru. Editing by Krishna Chandra Eluri.)

(source: Reuters)