JinkoSolar(JKS) - 2024 Q4 - Annual Report

First Quarter 2025 Highlights This section provides an overview of JinkoSolar's performance in Q1 2025, including CEO commentary, key metrics, and advancements in technology and energy storage CEO Commentary and Market Environment CEO Xiande Li highlighted a challenging first quarter with significant pressure on profit margins due to low prices and trade policy disruptions - Module shipments reached 17.5 GW, generating revenues of US$1.91 billion in Q1 2025[4] - Profitability was pressured by low prices in the solar industrial chain and disruptions from international trade policies, leading to a net loss of US$181.7 million[4] - The company is flexibly adjusting its supply chain and regional shipment mix to adapt to market challenges[5] - The order book visibility for 2025 is currently 60% to 70%, with the Indo-Pacific and Middle East/Africa regions exceeding 80%[5][7] Key Operational and Financial Metrics In Q1 2025, total shipments decreased, revenues fell significantly, and the company reported a gross loss and net loss Q1 2025 Key Metrics vs. Prior Periods | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Total Shipments | 19,130 MW | 26,468 MW | 21,909 MW | | Total Revenues | US$1.91 billion | US$2.85 billion | US$3.18 billion | | Gross (Loss)/Profit Margin | -2.5% | 3.8% | 11.9% | | Net (Loss)/Income | (US$181.7 million) | (RMB 476.7 million) | RMB 609.4 million | | Diluted (Loss)/Earnings per ADS | (US$3.53) | (RMB 9.28) | RMB 5.36 | - The company became the first module manufacturer in the world to have delivered a total of over 320 GW of solar modules[7] Technology and R&D Advancements JinkoSolar continues to advance its N-type TOPCon technology, achieving high mass production cell efficiency and setting new laboratory records - Mass production cell efficiency for third-generation TOPCon products exceeded 26.6%[6] - Set a new record laboratory conversion efficiency of 34.22% for its N-type TOPCon-based perovskite tandem solar cell[6][7] Energy Storage Business The energy storage business shows significant growth, with Q1 shipments exceeding 300 MWh and strong full-year guidance - Q1 2025 energy storage system shipments exceeded 300 MWh[8] - Full-year 2025 energy storage shipment guidance is approximately 6 GWh, with a strategic focus on overseas markets[8] - Recognized as a Tier 1 energy storage provider by BNEF for the fourth consecutive quarter[7] First Quarter 2025 Financial Results This section details JinkoSolar's financial performance for Q1 2025, covering revenues, gross profit, operating loss, and net loss Revenue Total revenues for Q1 2025 were RMB 13.84 billion (US$1.91 billion), significantly decreasing sequentially and year-over-year Revenue Performance (RMB) | Period | Revenue (in billions) | | :--- | :--- | | Q1 2025 | 13.84 | | Q4 2024 | 20.65 | | Q1 2024 | 23.04 | - The sequential decrease was mainly due to lower solar module shipments, while the year-over-year decrease was attributed to a lower average selling price[10] Gross Profit/Loss and Margin The company reported a gross loss of RMB 352.9 million (US$48.6 million) in Q1 2025, resulting in a negative gross margin Gross Profit/Loss and Margin | Period | Gross (Loss)/Profit (RMB) | Gross Margin | | :--- | :--- | :--- | | Q1 2025 | (352.9 million) | -2.5% | | Q4 2024 | 789.7 million | 3.8% | | Q1 2024 | 2.74 billion | 11.9% | Operating Loss and Expenses Loss from operations widened significantly in Q1 2025 to RMB 2.87 billion (US$394.8 million), with an operating loss margin of 20.7% - Loss from operations was RMB 2.87 billion (US$394.8 million) with an operating loss margin of 20.7%[13] - Total operating expenses decreased by 8.1% sequentially and 18.3% year-over-year to RMB 2.51 billion[14] Other Financial Items Q1 2025 saw increased net interest expenses, significant subsidy income, a net exchange gain, and an income tax benefit - Net interest expenses increased 27.0% YoY to RMB 237.3 million (US$32.7 million)[17] - Subsidy income was RMB 536.0 million (US$73.9 million)[18] - Recorded an income tax benefit of RMB 699.5 million (US$96.4 million)[27] Net Loss and Earnings Per Share (EPS) The company reported a net loss attributable to ordinary shareholders of RMB 1.32 billion (US$181.7 million) in Q1 2025 Net Loss and EPS Performance | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Net (Loss)/Income (attributable) | (RMB 1.32 billion) | (RMB 476.7 million) | RMB 609.4 million | | Adjusted Net (Loss)/Income | (RMB 1.07 billion) | (RMB 430.8 million) | RMB 470.3 million | | Diluted Loss per ADS | (US$3.53) | (RMB 9.28) | RMB 5.36 | Financial Position As of March 31, 2025, JinkoSolar held significant cash, but also reported increased total interest-bearing debts Key Balance Sheet Items (as of March 31, 2025) | Item | Amount (RMB) | Amount (USD) | | :--- | :--- | :--- | | Cash, cash equivalents, and restricted cash | 27.38 billion | 3.77 billion | | Accounts Receivables | 12.79 billion | 1.76 billion | | Inventories | 13.26 billion | 1.83 billion | | Total Interest-bearing Debts | 46.54 billion | 6.41 billion | Operational Highlights and Business Outlook This section covers JinkoSolar's Q1 2025 shipment performance, future guidance, production capacity targets, and recent business achievements Q1 2025 Shipments In Q1 2025, JinkoSolar's total shipments reached 19,130 MW, comprising solar modules, cells, and wafers Q1 2025 Total Shipments | Category | Shipments (MW) | | :--- | :--- | | Solar Modules | 17,504 | | Cells and Wafers | 1,626 | | Total | 19,130 | Q2 and Full Year 2025 Guidance The company projects strong module shipment growth for Q2 and the full year 2025, indicating a positive outlook - Q2 2025 module shipment guidance is projected to be in the range of 20.0 GW to 25.0 GW[9][36] - Full year 2025 module shipment guidance is estimated to be between 85.0 GW and 100.0 GW[9][37] Production Capacity Outlook JinkoSolar plans significant expansion of its mono wafer, solar cell, and solar module production capacities by the end of 2025 Year-End 2025 Production Capacity Targets | Product | Target Capacity (GW) | | :--- | :--- | | Mono Wafer | 120.0 | | Solar Cell | 95.0 | | Solar Module | 130.0 | Recent Business Developments In April 2025, JinkoSolar maintained its "AAA" rating in the PV Tech 2025 Q1 ModuleTech Bankability Report - In April 2025, the company once again received an "AAA" rating in the PV Tech 2025 Q1 ModuleTech Bankability Report[39] Unaudited Condensed Consolidated Financial Statements This section presents the unaudited condensed consolidated financial statements, including statements of operations, comprehensive income, and balance sheets Statements of Operations This statement provides detailed unaudited consolidated operations for Q1 2025, itemizing revenues, costs, expenses, and net loss Q1 2025 Statement of Operations Highlights (in thousands USD) | Line Item | Q1 2025 | | :--- | :--- | | Revenues | 1,907,704 | | Gross Loss | (48,628) | | Loss from Operations | (394,829) | | Net Loss | (283,443) | | Net Loss Attributable to Shareholders | (181,747) | Statement of Comprehensive Income This statement details the comprehensive loss for Q1 2025, including net loss and other comprehensive income items - The comprehensive loss attributable to JinkoSolar Holding Co., Ltd.'s ordinary shareholders was RMB 2,767.4 million (US$381.4 million)[51] Balance Sheets This section presents the company's financial position as of March 31, 2025, detailing assets, liabilities, and shareholders' equity Balance Sheet Highlights (as of March 31, 2025, in thousands USD) | Line Item | Amount | | :--- | :--- | | Total Current Assets | 9,277,492 | | Total Assets | 16,846,698 | | Total Current Liabilities | 6,990,959 | | Total Liabilities | 12,489,650 | | Total Shareholders' Equity | 4,142,901 |