JinkoSolar(JKS) - 2025 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue for the first quarter of 2025 was $1.9 billion, down 33% sequentially and down 40% year over year [20] - Net loss was approximately $100 million for the first quarter [6] - Gross margin decreased both sequentially and year over year, primarily due to a decrease in average selling price (ASP) of solar modules [20] - Total operating expenses were $350 million, down 8% sequentially and down 18% year over year [21] - Cash and cash equivalents at the end of the first quarter were $3.77 billion, a significant increase from $2.44 billion at the end of the first quarter last year [19] Business Line Data and Key Metrics Changes - Model shipments reached 17.5 gigawatts with revenues of $1.91 billion for the first quarter [5] - Total shipments were 19.1 gigawatts, with module shipments accounting for approximately 90% [13] - Shipments to the Indo Pacific market grew by nearly 10% year over year and 150% sequentially, while shipments to North Asia increased by nearly 20% year over year [14] Market Data and Key Metrics Changes - New installations in China in the first quarter amounted to 59.7 gigawatts, an increase of 31% year over year [6] - The global module demand is expected to remain about 700 gigawatts in 2025, with strong growth in Asia Pacific, Europe, and the Middle East [17] - The U.S. market is expected to see a wave of early purchases of cells and modules due to a current shortage in local cell production capacity [17] Company Strategy and Development Direction - The company aims to maintain a leading position in the industry by optimizing market strategies and supply chain management while improving technology and product competitiveness [12] - The focus is on high-efficiency cell capacity and high-power products, which are expected to have a competitive advantage in the market [10] - The company plans to explore innovative business models that integrate solar and storage solutions [12] Management's Comments on Operating Environment and Future Outlook - Management noted that the current market environment is challenging due to low prices across the solar industrial chain and disruptions caused by changes in international trade policies [6] - There is optimism about long-term demand in the U.S. market despite current uncertainties [18] - Management expects gross margins to improve slightly in the second quarter due to an upward trend in module prices driven by demand from China and other regions [34] Other Important Information - The company expects annual production capacity for mono wafers, solar cells, and solar modules to reach 120, 95, and 130 gigawatts, respectively, by the end of 2025 [12] - Confirmed orders for energy storage systems accounted for 50% to 60%, with another 20% to 30% showing strong potential for signing [11] Q&A Session Summary Question: Details on ESS shipments - ESS shipment mix is mainly dominated by the Asia Pacific region, Europe, and emerging markets, with challenges in extending the ESS business in the U.S. due to trade barriers [27] Question: Future imports to the U.S. post-ADCVB - The company is exploring different options to provide more certainty and competitiveness in the U.S. market, despite uncertainties from preliminary tariffs [28] Question: Expectations for margins in Q2 and Q3 - Management expects gross margins to improve slightly in Q2 due to an upward trend in module prices, with potential for stabilization in the second half of the year [34] Question: Plans for U.S. cell manufacturing - Local production in the U.S. is seen as a long-term trend, but short-term uncertainties make it difficult to ramp up manufacturing [39] Question: Guidance on ESS margins - The target gross margin for ESS is expected to be in the range of 5% to 10% [46] Question: U.S. shipment target for the year - The shipment target for the U.S. is approximately 5% to 10% of total shipments, with current uncertainties impacting this range [50] Question: Shareholder return program - The company plans to buy back shares and defer dividends, with a minimum of $100 million allocated for dividends and repurchases [56]