Jinko Solar(SH:688223) Xin Lang Cai Jing·2025-09-23 10:43Core Viewpoint - JinkoSolar is facing significant financial challenges, including a substantial loss in the first half of the year and declining profit margins, leading to asset sales and shareholder cash-outs, which further undermine market confidence in the company's future [1][12]. Financial Performance - In the first half of the year, JinkoSolar reported a revenue of 31.8 billion yuan, a year-on-year decrease of 32.6%, and a net loss of 2.91 billion yuan compared to a profit of 1.2 billion yuan in the same period last year [3]. - The company's gross profit margin fell to -2.0%, a decline of 10.6 percentage points year-on-year, marking a rare entry into negative territory [3][5]. - In Q2, JinkoSolar's revenue was 17.99 billion yuan, down 25.6% year-on-year, with a net loss of 1.52 billion yuan, indicating a continued downward trend in performance [4]. Product Performance - JinkoSolar's component revenue decreased by 33.7% to 30.124 billion yuan, with a corresponding gross margin of -0.98%. The gross margin for battery cells plummeted by 27.18 percentage points to -29.95%, while silicon wafer margins fell by 25.92 percentage points to -27.29% [5]. - The company's overseas revenue also declined by 38.93% to 20.535 billion yuan, with a gross margin dropping to -0.05%, marking the first time in five years it has entered negative territory [5]. R&D and Competitive Position - Despite early investments in N-type components and a significant output of over 48 GW in 2023, JinkoSolar is losing its competitive edge as other companies rapidly increase their TOPCon production capacity, leading to intensified price competition [6]. Cash Flow and Debt Situation - JinkoSolar's operating cash flow showed a net outflow of 3.81 billion yuan in the first half of 2025, doubling year-on-year, primarily due to reduced receivables [6][8]. - The company's debt ratio reached 74.07% by mid-2025, an increase of 2.08 percentage points from the end of 2024, indicating a growing debt burden [8]. - Interest-bearing debt surged by 5.92 percentage points to 32.47%, with total interest-bearing liabilities nearing 30 billion yuan, including short-term and long-term borrowings [9]. Asset Sales and Strategic Moves - To alleviate financial pressure, JinkoSolar has opted to sell assets, including the 100% stake in Xinjiang Jinko for 4.3 billion yuan, which had shown promising profits [10]. - The company also plans to sell 80% of its subsidiary Zhejiang Jinko New Materials for 8 million yuan, despite the subsidiary's ongoing losses, which will provide a significant investment gain relative to its audited net profit [11]. Market Sentiment - The ongoing asset sales and the significant cash-outs by major shareholders amid declining stock prices have raised concerns about JinkoSolar's future prospects in the market [12].