Jinkosolar ((JKS)) has held its Q4 earnings call. Read on for the main highlights of the call.
JinkoSolar’s Latest Earnings Call Reveals Challenges Amidst Industry Leadership
JinkoSolar’s recent earnings call painted a picture of a challenging year, marked by significant declines in profit and gross margins due to pricing pressures and demand imbalances. Despite these hurdles, the company maintained its leadership in module shipments and achieved notable milestones in sustainability and patent holdings. The outlook remains cautious, with expectations for gradual improvements.
Record Annual Module Shipments
JinkoSolar reported an impressive 18.3% year-over-year increase in annual module shipments, reaching 93 gigawatts. This achievement solidifies the company’s position as the industry leader in module shipments, showcasing its operational strength despite market challenges.
Sustainability Achievements
The company was recognized for its sustainability efforts, being included in the S&P Global 2025 Sustainability Yearbook and receiving a BBB rating in the MSCI ESG ratings for the second consecutive year. These accolades highlight JinkoSolar’s commitment to sustainable practices and its leadership in environmental, social, and governance standards.
Patent Portfolio Strength
JinkoSolar continues to lead in innovation with 462 granted TOPCon patents, making it a global leader in TOPCon-related patents. This robust patent portfolio underscores the company’s focus on technological advancements and its competitive edge in the solar industry.
Significant Profit Decline
The earnings call revealed a dramatic 98% year-over-year decline in net income, which stood at $7.9 million. Additionally, the gross margin fell to 10.9% in 2024 from 16% in 2023, reflecting the financial pressures faced by the company.
Fourth Quarter Loss
JinkoSolar experienced a net loss of $64.9 million in the fourth quarter, with a gross margin of 3.6%. This is a significant drop from the third quarter’s net income of $3.2 million and a gross margin of 15.7%, highlighting the volatility and challenges in the market.
Decline in Revenue
The company reported a total revenue of $2.83 billion in the fourth quarter, marking a 15.7% sequential decline and a 37% year-over-year decrease. This downturn in revenue underscores the impact of the ongoing market challenges on JinkoSolar’s financial performance.
Challenges in Pricing and Demand
JinkoSolar faced an imbalance between supply and demand, leading to a decline in module prices and impacting profitability across the industry. This challenge is a significant factor in the company’s financial results and strategic planning.
Forward-Looking Guidance
Looking ahead, JinkoSolar provided guidance for the first quarter and full-year 2025, projecting mass-produced N-type cell efficiency to reach approximately 27% by the end of 2025. The company expects module shipments between 16 to 18 gigawatts for Q1 2025 and 85 to 100 gigawatts for the full year. JinkoSolar plans a cautious approach to capacity expansion, focusing on TOPCon technology upgrades, and aims to optimize its asset and liability structure while maintaining a healthy cash reserve of $3.8 billion.
In conclusion, JinkoSolar’s earnings call highlighted a year of challenges and achievements. While the company faced significant financial pressures, it maintained its leadership in module shipments and sustainability efforts. The cautious outlook and strategic focus on technological advancements and financial optimization suggest a path towards gradual improvement in the coming year.