Jinkosolar ((JKS)) has held its Q1 earnings call. Read on for the main highlights of the call.
JinkoSolar’s recent earnings call painted a mixed picture for the company, with notable advancements in technology and energy storage expansion, yet overshadowed by significant declines in revenue and profitability. The sentiment expressed during the call was largely negative, driven by challenges in the U.S. market and an unfavorable financial position despite strong cash reserves.
Record Module Shipments
JinkoSolar reported impressive module shipments in the first quarter, totaling 19.1 gigawatts, with approximately 90% attributed to module shipments. The Indo-Pacific market saw a year-over-year growth of nearly 10% and a sequential increase of 150%, while North Asia experienced a 20% year-over-year growth. These figures highlight JinkoSolar’s strong presence in these regions.
Advancements in TOPCon Technology
The company achieved significant progress in its TOPCon technology, with mass-produced cell efficiency for third-generation products exceeding 26.6%. Additionally, laboratory efficiency for perovskite tandem solar cells based on TOPCon reached a record 34.22%. These advancements underscore JinkoSolar’s commitment to innovation and technological leadership.
Expansion in Energy Storage Shipments
Energy storage shipments exceeded 300 megawatt hours in the first quarter, marking a substantial increase from the previous year. JinkoSolar expects energy storage system shipments to reach around 6 gigawatt hours by 2025, indicating a strategic focus on expanding its energy storage solutions.
Strong Cash and Cash Equivalents
JinkoSolar’s financial stability is bolstered by a significant increase in cash and cash equivalents, which stood at US$3.77 billion by the end of the first quarter, up from US$2.44 billion the previous year. This strong cash position provides a buffer against market uncertainties.
Decreased Revenue and Profitability
The company faced a challenging financial quarter, with total revenue dropping to US$1.9 billion, a 33% sequential decline and a 40% year-over-year decrease. The gross margin also suffered due to a decrease in the average selling price of solar modules, resulting in a net loss of approximately US$180 million.
Challenges in U.S. Market
JinkoSolar encountered difficulties in the U.S. market, with a year-over-year decline in shipments attributed to changes in international trade policies, including reciprocal tariffs and ADCBD uncertainties. These challenges have impacted the company’s market performance in the region.
Negative Operating Loss Margin
The operating loss margin increased to about 20%, compared to 9% in the previous quarter and 1.5% in the same quarter last year. This negative trend highlights the financial pressures JinkoSolar is currently facing.
Forward-Looking Guidance
Looking ahead, JinkoSolar provided guidance for the second quarter and full year, anticipating significant production capacity increases for mono wafers, solar cells, and solar modules by the end of 2025. Module shipments are projected to range between 20 GW to 25 GW in Q2 2025 and 85 GW to 100 GW for the year. The company also aims to enhance its third-generation TOPCon module production capacity and energy storage system shipments, focusing on overseas markets and optimizing market strategies.
In summary, JinkoSolar’s earnings call highlighted a challenging quarter with declines in revenue and profitability, compounded by difficulties in the U.S. market. However, the company remains optimistic about its technological advancements and strategic expansions in energy storage. With strong cash reserves and forward-looking guidance, JinkoSolar is poised to navigate the current challenges and capitalize on future opportunities.