Mei Ri Jing Ji Xin Wen·2025-11-30 14:12Core Viewpoint - JinkoSolar, the world's largest photovoltaic module company, reported on the progress of a fire incident at its wholly-owned subsidiary, Shanxi Jinko Energy No. 2 Manufacturing Co., which occurred on April 26, 2024, and has implications for its financial performance and insurance claims [1][5][6]. Financial Impact - The fire incident resulted in damage to certain equipment and assets, leading the company to recognize corresponding losses in its 2024 annual report [5]. - Shanxi Jinko has received a prepayment of 200 million yuan from its insurance company, with a total of 220 million yuan received as of the announcement date [5]. - The prepayment is expected to positively impact the company's performance in 2025, although the final accounting treatment and its effects on financial statements will require confirmation from the auditing firm [5]. Operational Status - The fire occurred in the roof of the first-phase wafer battery workshop, which was still under construction at the time of the incident, meaning the company did not have statutory management responsibilities under the Production Safety Law of the People's Republic of China [6]. - The first phase of the Shanxi base, including the crystal pulling and module workshops, has been completed and is operational, while the wafer battery workshop is currently under reconstruction [6]. Market Performance - In 2024, JinkoSolar reported revenues of 92.471 billion yuan, a year-on-year decrease of 22.08%, and a net profit attributable to shareholders of 9.89276 million yuan, down 98.67% [7]. - For the first three quarters of the year, the company recorded revenues of 47.986 billion yuan, a decline of 33.14%, and a net loss of 3.920 billion yuan, a drop of 422.67% [7]. - The losses are attributed to intensified competition in the photovoltaic market and a continuous decline in product prices [7]. Future Outlook - JinkoSolar aims to ship 6 GWh of energy storage systems in 2024, with over 80% expected to come from overseas markets, particularly high-margin markets in Europe and the U.S. [7]. - The company anticipates significant improvement in profitability in the fourth quarter and next year as overseas orders are delivered and revenue is recognized [7]. Stock Performance - As of November 28, JinkoSolar's stock price increased by 0.54% to 5.63 yuan per share, with a total market capitalization of 56.3 billion yuan [8].