#China #financial results #JinkoSolar #Shangrao #Solar Modules

Introduction

In a recent announcement, JinkoSolar Holding Co., Ltd. (NYSE: JKS), a leading global solar module manufacturer, shared its financial results for the first quarter of 2025. The company has faced a myriad of challenges in the competitive solar market, underscoring the complex landscape influenced by fluctuating demand and international trade policies.

Key Highlights

JinkoSolar achieved remarkable module shipments of 17.5 GW during this period, leading the industry. They also made a significant mark by becoming the first manufacturer to deliver over 320 GW of solar modules globally, showcasing their reach across nearly 200 countries. Their order book visibility remains robust, estimated at around 60% to 70% overall, with even stronger visibility in the Indo-Pacific and the Middle East and Africa regions, exceeding 80%. Furthermore, they accomplished a record-breaking conversion efficiency of 34.22% with their N-type TOPCon-based perovskite tandem solar cell and earned the Tier 1 energy storage provider designation from Bloomberg New Energy Finance for the fourth consecutive quarter.

Financial Overview

During the quarter, JinkoSolar recorded total revenues of RMB 13.84 billion (approximately USD 1.91 billion), reflecting a steep decline of 33% quarter-over-quarter and a staggering 39.9% year-over-year. This dip is primarily attributed to lower module shipment volumes and declining prices across the solar market.

Additionally, the company reported a gross loss of RMB 352.9 million (USD 48.6 million). This loss was more profound compared to the gross profit of RMB 789.7 million in the previous quarter, showcasing significant pressure from the market. Their gross loss margin stood at 2.5%, in stark contrast to the gross profit margins of previous quarters.

JinkoSolar's net loss attributable to ordinary shareholders was RMB 1.32 billion (USD 181.7 million) for the quarter, compared to a net loss of RMB 476.7 million in Q4 2024.

Operational Challenges

Mr. Xiande Li, Chairman and CEO of JinkoSolar, noted that while the company met its commitments and reduced operational costs, various factors pressed profit margins. The overall prices within the solar industry remained depressed, and demand was disrupted due to shifting international trade policies, particularly affecting shipments to the U.S. market.

Despite these challenges, the company remains committed to fulfilling customer demands for reliable and efficient products. They are adopting agile modifications in their supply chain strategies to navigate the evolving market landscape.

Future Outlook

Looking forward, JinkoSolar anticipates module shipments in the range of 20.0 GW to 25.0 GW for the second quarter of 2025, with the full year projections ranging between 85.0 GW and 100.0 GW. The company is optimistic about increasing its production capacity significantly as it looks to enhance its competitive edge within the industry. By the end of 2025, JinkoSolar aims to reach an annual production capacity of 120 GW for mono wafers, 95 GW for solar cells, and 130 GW for solar modules.

Conclusion

JinkoSolar's first quarter results reveal the trials faced by the solar industry amid changing political and economic environments. As they adapt their strategies and operations, the company showcases resilience and commitment to innovation and market leadership in providing sustainable solar solutions globally.