JA SOLAR(SZ:002459) 3 6 Ke·2025-11-03 03:02Core Viewpoint - The global photovoltaic industry is facing a severe downturn, with JinkoSolar struggling significantly, reporting substantial losses and failing to show signs of recovery compared to its peers [1][2]. Group 1: Financial Performance - In Q3 2025, JinkoSolar reported a revenue of 12.904 billion yuan, a year-on-year decrease of 24.05%, and a net loss of 973 million yuan, a staggering year-on-year decline of 349.58% [1]. - For the first three quarters of 2025, the total revenue reached 36.809 billion yuan, down 32.27% year-on-year, with cumulative net losses amounting to 3.553 billion yuan [1]. - The company's gross margin fell to -2.60%, a decrease of 8.00 percentage points year-on-year, while the net margin dropped to -9.82%, down 8.25 percentage points from the previous year [1][2]. Group 2: Market Position and Challenges - JinkoSolar's reliance on photovoltaic module sales, which account for over 90% of its revenue, has left it vulnerable to price declines in the market [2]. - The gross margin for the module segment plummeted to -5.98% in H1 2025, a drop of 10.51 percentage points year-on-year, due to a significant price drop across the photovoltaic supply chain [2]. - International trade barriers have further exacerbated the situation, with the company's European market gross margin turning negative in 2024 [2]. Group 3: Cash Flow and Financial Health - Despite ongoing losses, JinkoSolar reported a net cash flow from operating activities of 4.695 billion yuan as of September 2025, marking four consecutive quarters of improvement [4]. - The company has over 24.2 billion yuan in cash reserves, providing some support during industry fluctuations [4]. - However, financial pressures remain, with interest-bearing liabilities reaching 44.71 billion yuan, a year-on-year increase of 9.67%, and a debt-to-asset ratio of 37.81% [4]. Group 4: Business Diversification and Strategic Adjustments - JinkoSolar's energy storage business has seen significant growth, with a shipment of over 12 GWh in H1 2025, nearing the total for 2024 [6]. - The company aims to achieve profitability by 2026, focusing on technological innovation and optimizing production capacity [7]. - JinkoSolar is shifting from a price-driven to a value-driven market approach, with plans for new production lines in Oman expected to be operational by Q1 2026 [7]. Group 5: Industry Outlook and Policy Support - The current deep adjustment in the photovoltaic industry is viewed as a necessary transition towards high-quality development, moving away from price wars to value competition [9]. - Recent policy measures aimed at curbing excessive competition are expected to help stabilize the industry and promote technological upgrades [9]. - JinkoSolar's advantages in cost control, financial strength, and market positioning may translate into growth opportunities as the industry begins to recover [9].