Core 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 to alleviate debt pressures [1][2][9][14]. 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 [2][5]. - The company's gross margin fell to -2.0%, a decline of 10.6 percentage points year-on-year, marking a rare instance of negative gross margin [2][3]. - In Q2, 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 [2]. Product Segment Performance - JinkoSolar's component revenue decreased by 33.7% to 30.124 billion yuan, with a gross margin of -0.98% [5]. - The gross margin for battery cells plummeted by 27.18 percentage points to -29.95%, while the gross margin for silicon wafers dropped by 25.92 percentage points to -27.29% [5]. - International revenue fell by 38.93% to 20.535 billion yuan, with a gross margin of -0.05%, marking the first time in five years that it has entered negative territory [5]. R&D and Competitive Position - JinkoSolar has heavily capitalized its R&D investments, with a cost capitalization rate of only about 20%, indicating potential overstatement of performance [5][8]. - Although JinkoSolar initially led in the adoption of TOPCon technology, increased competition has eroded its first-mover advantage, resulting in a rapid expansion of TOPCon capacity across the industry [8]. Cash Flow and Debt Situation - The company reported a negative operating cash flow of -3.81 billion yuan in the first half of 2025, with a year-on-year increase in cash outflow [9][11]. - As of June 2025, JinkoSolar's debt ratio reached 74.07%, an increase of 2.08 percentage points from the end of 2024, with interest-bearing debt rising significantly [11]. - The company has been selling assets to manage its financial strain, including the sale of its subsidiary Xinjiang Jinko for 4.3 billion yuan, despite the subsidiary's strong performance [11][12]. Asset Sales and Market Confidence - JinkoSolar's asset sales, while providing short-term relief, are unlikely to resolve underlying performance and debt issues [14]. - The stock price decline has led to significant shareholder sell-offs, further diminishing market confidence in the company's future prospects [14].

Report Industry Investment Rating - Unilateral: Neutral for polysilicon; short - term range operation for polysilicon [5][7] - Inter - period: None for both industrial silicon and polysilicon [2][5][7] - Inter - commodity: None for both industrial silicon and polysilicon [2][5][7] - Spot - futures: None for both industrial silicon and polysilicon [2][5][7] - Options: None for both industrial silicon and polysilicon [2][5][7] Core View - Industrial silicon's short - term supply - demand fundamentals are average. The intraday sharp rise and then fall of the industrial silicon futures are mainly affected by the rise of coking coal. The short - term industrial silicon futures are affected by the overall commodity sentiment and policy - related news. If there are policies to promote, the futures may have room to rise as the current valuation is low [2] - The supply - demand fundamentals of polysilicon are average. The current futures are affected by the anti - involution policy and weak reality. The policy is still in progress, and the futures fluctuate greatly. In the medium - to - long - term, it is suitable to go long on polysilicon at low prices [7] Market Analysis Industrial Silicon - On September 15, 2025, the industrial silicon futures price was strong. The main contract 2511 opened at 8,725 yuan/ton and closed at 8,800 yuan/ton, up 0.86% from the previous settlement. The position of the main contract 2511 was 290,948 lots, and the number of warehouse receipts was 49,905 lots, down 93 lots from the previous day [1] - The spot price of industrial silicon rose slightly. The price of East China oxygen - passing 553 silicon was 9,100 - 9,300 yuan/ton, and 421 silicon was 9,400 - 9,600 yuan/ton. The price of Xinjiang oxygen - passing 553 silicon was 8,600 - 8,700 yuan/ton, up 50 yuan/ton, and 99 silicon was also 8,600 - 8,700 yuan/ton, up 50 yuan/ton. The silicon prices in Kunming, Huangpu Port, Northwest, Tianjin, Xinjiang, Sichuan, and Shanghai regions rose slightly, and the price of 97 silicon was slightly adjusted up [1] - The quotation of silicone DMC was 10,700 - 10,900 yuan/ton, up 100 yuan/ton. The monomer factory's pre - sales orders were sufficient, and the inventory pressure was not large. Downstream enterprises' procurement rhythm remained unchanged, mainly replenishing stocks at low prices, with limited support for the market. Silicone is expected to stabilize in the short term [1] Polysilicon - On September 15, 2025, the main contract 2511 of polysilicon futures fluctuated. It opened at 53,630 yuan/ton and closed at 53,545 yuan/ton, down 0.34% from the previous trading day. The position of the main contract was 132,212 lots (134,898 lots the previous day), and the trading volume was 237,981 lots [4] - The spot price of polysilicon remained stable. The price of N - type material was 49.10 - 54.00 yuan/kg, and n - type granular silicon was 48.00 - 49.00 yuan/kg. The inventory of polysilicon manufacturers increased, and the inventory of silicon wafers decreased. The latest polysilicon inventory was 21.90 (a month - on - month change of 3.79%), the silicon wafer inventory was 16.55GW (a month - on - month change of - 1.78%), the weekly polysilicon output was 31,200 tons (a month - on - month change of 3.31%), and the silicon wafer output was 13.88GW (a month - on - month change of 0.73%) [4] - The price of domestic N - type 18Xmm silicon wafers was 1.33 yuan/piece (up 0.05 yuan/piece), N - type 210mm was 1.68 yuan/piece (up 0.05 yuan/piece), and N - type 210R silicon wafers were 1.43 yuan/piece (up 0.05 yuan/piece) [4] - Silicon wafer enterprises may raise prices. N - type silicon wafers - 183mm may rise to 1.35 yuan/piece, N - type silicon wafers - 210R to 1.45 yuan/piece, and N - type silicon wafers - 210mm to 1.7 yuan/piece. The price increase of 183mm is likely to be accepted by downstream, while the other two sizes need to pay attention to the transaction situation [6] - The price of high - efficiency PERC182 battery cells was 0.27 yuan/W, PERC210 battery cells were about 0.28 yuan/W, TopconM10 battery cells were about 0.32 yuan/W (up 0.01 yuan/W), Topcon G12 battery cells were 0.31 yuan/W (up 0.01 yuan/W), Topcon210RN battery cells were 0.29 yuan/W, and HJT210 half - cell battery was 0.37 yuan/W [6] - The mainstream transaction price of PERC182mm components was 0.67 - 0.74 yuan/W, PERC210mm was 0.69 - 0.73 yuan/W, N - type 182mm was 0.67 - 0.69 yuan/W, and N - type 210mm was 0.67 - 0.69 yuan/W [6] Strategy Industrial Silicon - The spot price rose slightly following the futures. The short - term supply - demand fundamentals are average. The short - term industrial silicon futures are affected by the overall commodity sentiment and policy - related news. Attention should be paid to whether there are policies for capacity withdrawal. If there are policies to promote, the futures may have room to rise [2] Polysilicon - The supply - demand fundamentals are average. The current futures are affected by the anti - involution policy and weak reality. Participants should pay attention to risk management. They need to continuously follow up on the implementation of policies and the downward transmission of spot prices. In the medium - to - long - term, it is suitable to go long on polysilicon at low prices. Short - term range operation is recommended [7]

Group 1: Company Performance - Jiangsu's 713 A-share listed companies achieved a total revenue of over 1.68 trillion yuan and a net profit of nearly 148.2 billion yuan in the first half of 2025, with 429 companies reporting revenue growth [1] - 573 companies reported profitability, with 193 companies having a net profit exceeding 100 million yuan [1] - Over 40% of companies reported revenue exceeding 1 billion yuan, and 45 companies had revenue growth exceeding 50% [1] Group 2: AI Integration - More than half of the listed companies in Jiangsu mentioned "AI" or "artificial intelligence" in their semi-annual reports, indicating deep integration of AI tools with core business operations [2] - AI is reshaping drug development processes, as seen in Heng Rui Medicine's use of AI for early development strategies, enhancing clinical conversion efficiency [2] - Traditional industries are also benefiting from AI, with companies like Taihu Snow combining human creativity with AI for product design and optimization [2] Group 3: Cost Reduction and Innovation - AI applications are leading to cost reduction and efficiency improvements across various industries, such as a 20% reduction in R&D costs and a 30% decrease in R&D cycles in the steel industry [3] - Companies like Jingyuan Environmental are utilizing AI to provide comprehensive intelligent services, promoting industry upgrades [3] - The focus of AI applications is shifting towards vertical industries, allowing companies to address specific industry pain points effectively [3][4] Group 4: Industry Self-Regulation and Quality Improvement - The "anti-involution" trend is gaining traction in industries like photovoltaics, steel, cement, and chemicals, with companies actively addressing industry challenges through self-regulation and strategic adjustments [5] - Companies are focusing on differentiated competition and green transformation to achieve sustainable competitive advantages [5][6] Group 5: Overseas Expansion - 440 listed companies in Jiangsu reported a total overseas revenue of 290.6 billion yuan, with many adjusting their overseas production strategies to enhance global market adaptability [8] - Companies like Zhongxin Bo are establishing multiple production bases globally to respond quickly to international delivery demands [8] - Tianhe Energy has expanded its global service network, enhancing its international operational capabilities [9] Group 6: Mid-Year Dividend Distribution - Over 120 A-share listed companies in Jiangsu have announced mid-year dividend plans, with total distributions exceeding 10 billion yuan, reflecting improved corporate profitability and investor return awareness [11][12] - Companies are increasingly adopting clear mid- to long-term dividend plans, with some committing to a cash dividend ratio of no less than 30% of net profit [12][13] - The rise in mid-year dividends is seen as a positive signal for market stability and investor confidence [13]

Investment Rating - The report maintains an "Accumulate" rating for the company [5][4] Core Views - The company achieved a revenue of 10.221 billion RMB in H1 2025, representing a year-over-year increase of 15.21%, with a net profit of 676 million RMB, up 6.05% year-over-year [1] - The growth in net profit is primarily attributed to an increase in sales volume in the new materials business, which is expected to continue alongside the development of the new energy sector [1][2] - The company has established a strong brand presence in the U.S. market, leading to stable and reliable customer relationships despite a decrease in revenue due to lower component prices [2] Summary by Sections Financial Performance - In Q2 2025, the company reported a revenue of 5.257 billion RMB, a year-over-year increase of 19.94% and a quarter-over-quarter increase of 5.90%, with a net profit of 359 million RMB, down 4.17% year-over-year but up 13.44% quarter-over-quarter [1] - For H1 2025, the new materials segment saw a revenue increase of 23.84% and a net profit increase of 10.21%, driven by sales growth in sectors like electric vehicles and AI [2] Business Development - The company is expanding its production capacity in the new materials sector to meet the demands of emerging fields such as AI and semiconductors, with projects including a 30,000-ton special alloy electronic material expansion and a 20,000-ton production line that commenced in June 2025 [3] - In the new energy sector, the company has completed a 2GW N-type component project in the U.S. and is working on additional projects, while also navigating regulatory requirements to secure federal subsidies [3] Valuation and Forecast - The report projects net profits for 2025-2027 to be 1.32 billion, 1.60 billion, and 1.74 billion RMB respectively, with expected gross margins for new materials and new energy businesses at 50.5% and 49.5% [4] - The target price for the company's stock is set at 34.13 RMB, based on a price-to-earnings ratio of 19.0 and 23.2 for the respective business segments [4][5]

Core Insights - The photovoltaic module bidding scale reached 4.62GW in July 2025, with a significant share of N-type modules [1][2] - The bidding price range for photovoltaic modules was between 0.608-0.74 yuan/W, with an average price of 0.701 yuan/W [2][4] - Delivery periods are primarily set for August to October, with some projects extending to 2026 [5] Bidding Results - The disclosed bidding results for July 2025 show a total scale of 4.62GW, including a confirmed scale of 1.39GW, with the first bidder's scale at 3.23GW [2] - The confirmed scale for N-type modules reached 3.35GW, mainly driven by a 3GW procurement project from China Railway Construction [2][4] - Ten companies, including LONGi, Jinko, Trina Solar, and others, successfully entered the bidding [2] Price Trends - The bidding price for N-type modules ranged from 0.701 to 0.74 yuan/W, with an average of 0.715 yuan/W [4] - TOPCon module prices remained stable at or above 0.70 yuan/W, showing a slight increase due to policy and cost pressures [4] - The lowest bid was from Hebei Haopan Environmental Technology at 0.608 yuan/W, while the highest was from Chint New Energy at 0.74 yuan/W [2][4] Delivery Schedule - Most projects have a concentrated delivery window from August to October 2025, with some extending delivery deadlines to 2026 [5] - Projects like those from Huadian Group and Guangdong Energy Group have set their delivery periods within this timeframe [5] - Some projects are adopting phased delivery methods to accommodate immediate needs and long-term cooperation [5]

Core Insights - JinkoSolar achieved a global module shipment of 92.87GW in 2024, marking an 18.28% year-on-year increase and securing the top position in global module shipments for the sixth consecutive year [1] - The company's revenue reached 92.47 billion yuan, with a net profit attributable to shareholders of 0.99 billion yuan, while N-type module shipments accounted for 88% of total shipments [1] Group 1: Market Performance - JinkoSolar's module shipment volume increased from 78.52GW in 2023 to 92.87GW in 2024, significantly outpacing the industry average growth rate [1] - The company is the only entity to surpass 90GW in annual shipments, achieving this milestone for the first time in 2024 [1] - The overseas market contributed significantly to growth, with module sales accounting for nearly 70% of total sales, particularly in emerging markets like the Middle East and Southeast Asia [2] Group 2: Strategic Developments - In 2024, JinkoSolar signed a contract with Saudi Arabia's Public Investment Fund and Vision Industries Company to establish a 10GW high-efficiency battery and module production capacity, expected to be operational by the second half of 2026 [2] - The company has successfully maintained production at a 2GW domestic production line in the U.S., despite market fluctuations [2] Group 3: Technological Advancements - JinkoSolar's N-type technology has enabled it to achieve a competitive edge, with 81.29GW of N-type module shipments in 2024 [2] - The third-generation Tiger Neo module boasts a conversion efficiency of 24.8% and a bifacial rate of 85%, with a maximum power output of 670W [2] - The company has over 3,000 patent authorizations, with the highest number of N-type TOPCon related patents globally, reinforcing its technological barriers [3]

Investment Rating - Industry Investment Rating: Overweight [1] Core Views - The photovoltaic industry is experiencing a weakening market atmosphere, with continued price declines across the supply chain. N-type module prices fell by 0.02 CNY/W, driven by expectations of decreased terminal component demand as the 531 rush installation deadline approaches. It is recommended to focus on the BC technology industry trend, which has relatively high certainty for the year [3][17][22]. - Offshore wind projects are progressing steadily, with the Jiangsu 1550MW offshore wind project entering the basic phase of construction. The successful connection of the Guangdong Yangjiang offshore wind project to the grid marks a significant milestone [3][23]. - The energy storage sector is seeing a valuation recovery during the earnings announcement period, with a focus on storage PCS and industrial storage segments. Global energy storage demand is rebounding, particularly in Europe, and there is potential for valuation recovery in large-scale and household storage segments [3][26]. - The electric grid investment in the first quarter of 2025 reached 95.6 billion CNY, a year-on-year increase of 24.8%. The State Grid plans to accelerate investment in UHV projects in the second quarter [3][43]. - The electric vehicle sector is influenced by potential tariff exemptions proposed by the Trump administration, suggesting continued investment in high-profit companies within the sector [3][45]. Summary by Sections Photovoltaic - Market sentiment is weak, with prices continuing to decline. N-type components dropped by 0.02 CNY/W, and terminal component demand is expected to decrease [3][15][21]. - The supply chain is under pressure, with expectations of a decline in domestic terminal component demand in the second half of the year [3][17][22]. Wind Power - Offshore wind projects are entering a positive phase, with significant projects in Jiangsu and Guangdong making progress [3][23][24]. Energy Storage - The sector is experiencing a valuation recovery, with a focus on PCS and industrial storage. Global demand is increasing, particularly in Europe [3][26][27]. Electric Grid Equipment - Investment in electric grid projects in the first quarter of 2025 was 95.6 billion CNY, a 24.8% increase year-on-year. The State Grid is expected to enhance UHV investment in the second quarter [3][43][44]. Electric Vehicles - The electric vehicle sector is affected by proposed tariff exemptions, with a recommendation to continue investing in high-profit companies [3][45][46]. Hydrogen Energy - Multiple large-scale hydrogen projects are underway, with a focus on hydrogen production and storage. Significant investments are being made in green hydrogen projects [3][38][39][40].

Investment Rating - Industry rating: Overweight [1] Core Insights - The offshore wind projects are progressing steadily, and photovoltaic module prices have increased again [1] - The photovoltaic sector is expected to benefit from a recovery in fundamentals and gradual policy implementation, approaching a right-side startup phase [20] - The energy storage sector is seeing unexpected growth in demand for lithium batteries used in data centers, with a focus on data centers and storage PCS segments [24] - The hydrogen energy industry is accelerating development due to strong policy support and increased investment and mergers within the sector [35] - The construction of high-voltage direct current (HVDC) projects is expected to maintain a high level of prosperity in 2025, with significant opportunities in the ultra-high voltage sector [39] Summary by Sections Photovoltaics - N-type module prices increased by 0.02 CNY/W, driven by demand from 430 and 531 projects, with production ramping up in March [12][19] - The photovoltaic sector's performance tracked a 1.67% increase, outperforming the market [12] - The industry is expected to see a price recovery in Q1 2025, with a focus on companies capable of navigating through cycles [20] Wind Power - The wind power sector saw a 2.53% increase, outperforming the market, with a significant rise in new installations in 2023 [21] - The market sentiment is boosted by the unexpected commencement of offshore wind projects, with a focus on tower and foundation segments [21] - Investment recommendations include undervalued stocks and those benefiting from offshore wind projects [21] Energy Storage - The energy storage sector is witnessing a robust demand for lithium batteries, particularly in data centers, with a focus on improving profitability models [24][30] - Notable growth in energy storage sales and margins reported by leading companies like CATL [24] - Various provinces are enhancing their energy storage subsidy policies, indicating a supportive environment for growth [25][26] Hydrogen Energy - Multiple provinces are actively promoting hydrogen energy development, with significant investments and mergers accelerating within the industry [35][37] - The establishment of hydrogen production and storage projects is gaining momentum, with a focus on comprehensive hydrogen energy ecosystems [36] - The market is expected to see a restructuring of the hydrogen energy landscape due to major transactions and strategic partnerships [37] Electric Grid Equipment - The commencement of the Gansu-Zhejiang ±800 kV HVDC project is a key development, with expectations of high demand for related equipment [39][40] - The construction of high-voltage transmission lines is projected to enhance the clean energy utilization capacity in the northwest region [39] - Investment recommendations focus on undervalued companies in the electric grid sector, particularly those involved in ultra-high voltage projects [39] Electric Vehicles - Domestic policies are focusing on consumption upgrades and technological industries, with initiatives to promote the replacement of old vehicles [41][42] - The automotive sector is expected to benefit from government support for electric vehicle upgrades and new energy vehicle development [41][44]