Jinko Solar(SH:688223) Zheng Quan Zhi Xing·2025-06-23 12:01Core Viewpoint - The company received an inquiry letter regarding its 2024 annual report, prompting a detailed response about its overseas business performance and customer relationships, particularly focusing on sales distribution and profit margins across different regions [1][2][3]. Sales Performance - The company's overseas component shipment accounted for approximately 57.8% of total shipments, with overseas sales revenue making up 68.6% of total revenue in 2024 [1]. - Sales revenue by region included: - Europe: 13.702 billion CNY - Americas: 22.432 billion CNY - Asia-Pacific: 13.654 billion CNY - Other regions: 11.360 billion CNY [1]. - The gross profit margins varied significantly by region, with Europe at 7.35%, Americas at 26.21%, Asia-Pacific at 0.23%, and Other regions at 24.60% [1][11]. Customer Analysis - The company provided detailed information on its top five customers in each region, including their business types, cooperation duration, and sales specifics [1][2]. - Notable customers included major renewable energy developers and distributors across Europe, the Americas, and Asia, with many having long-term relationships with the company [2][3]. Cost Structure and Margin Analysis - The company’s overall cost structure showed a decline in unit costs due to a significant drop in raw material prices, particularly for silicon, glass, and encapsulants [4][6]. - The gross profit margin in Europe and Asia decreased due to a larger drop in sales prices compared to unit costs, while the Americas saw an increase in gross profit margin due to stable pricing and reduced costs [10][11]. Market Dynamics - The company is positioned as a leader in global component shipments, with expectations for a slight increase in global installation demand in 2025 [10]. - The company’s strategy includes a diversified supply chain and market expansion to mitigate risks associated with international trade policies and market fluctuations [9][10]. Competitive Positioning - The company’s gross profit margins are competitive with industry peers, with European margins closely aligned with competitors, while the Americas show a strong margin compared to others [11]. - The company maintains a proactive approach to navigating trade barriers and market demands, ensuring a robust market presence across various regions [9][10].