JinkoSolar Holding Co., Ltd. (NYSE: JKS) saw its stock price surge 5.21% in pre-market trading on Monday after the company reported better-than-expected third-quarter financial results. The Chinese solar module manufacturer managed to narrow its losses and significantly improve its gross margin, despite facing challenges in the global solar market.

For the third quarter of 2025, JinkoSolar reported a net loss of RMB 749.8 million ($105.3 million), or RMB 3.58 ($0.50) per share. This loss was considerably smaller than analysts' expectations of RMB 1.60 per share. The company's gross margin improved to 7.3% in Q3, up from 2.9% in the previous quarter, signaling enhanced operational efficiency.

While JinkoSolar's total revenues decreased 34.1% year-over-year to RMB 16.16 billion ($2.27 billion), the company managed to outperform market expectations. The decline in revenue was primarily attributed to lower average selling prices of solar modules and decreased shipments. Despite these challenges, JinkoSolar's ability to narrow its losses and improve margins has impressed investors, leading to the stock's significant pre-market rally.

Looking ahead, JinkoSolar provided an optimistic outlook for the fourth quarter and full year 2025. The company expects total shipments for Q4 to be in the range of 18.0 GW to 33.0 GW, and estimates full-year 2025 shipments between 85.0 GW and 100.0 GW. This positive guidance, coupled with the company's improving profitability, has bolstered investor confidence in JinkoSolar's ability to navigate the current market conditions effectively.