In late February 2026, global photovoltaic module leader Jinko Solar released its 2025 performance forecast, revealing annual revenue of 65.492 billion yuan, a year-on-year decline of 29.18%, and a net loss attributable to shareholders of -6.786 billion yuan. This marks Jinko Solar's first annual loss since 2013.

Historically, Jinko Solar has been regarded as an industry benchmark. In 2023, the company achieved a net profit of 7.44 billion yuan, and although profits significantly decreased in 2024, it remained marginally profitable. Over a decade of consistent profitability had secured its position among the top global module suppliers. However, within just one year, this track record was broken. The substantial loss stems from multiple pressures, including industry cycles, overcapacity, technological transitions, and external environmental factors.

A sharp decline in prices across the entire industry chain was the primary trigger for the loss. In recent years, the photovoltaic sector has faced severe overcapacity, with module prices plummeting from a peak of 1.8 yuan/W in 2020 to a low of 0.65 yuan/W in 2025. Prices in several segments fell below cost levels. To maintain market share, Jinko Solar was forced to prioritize volume over price, leading to negative gross margins in its core module business. The growth in scale was insufficient to offset profit losses caused by price erosion.

Additionally, Jinko Solar's performance was impacted by its product mix and asset impairment issues. The company stated in its performance forecast that, during the reporting period, photovoltaic module prices remained low overall, and the proportion of high-power products in its shipments remained relatively small. Furthermore, adhering to the principle of prudence, the company conducted impairment tests on long-term assets showing signs of devaluation.

This loss is not an isolated case for Jinko Solar but reflects a broader industry-wide adjustment. Years of aggressive capacity expansion have led to a severe supply-demand imbalance, with homogeneous competition escalating into fierce price wars. Industry leaders are now bearing the brunt of this cyclical downturn.

However, as efforts to curb cutthroat competition in the photovoltaic sector intensify, Jinko Solar's gross margin turned positive quarter-on-quarter in the third quarter of 2025, and its operating cash flow shifted from negative to positive, signaling a potential bottoming out. The company is accelerating its TOPCon technology upgrades and focusing on high-margin products such as the "Flying Tiger 3." At the same time, its energy storage business is growing rapidly, aiming to create a second growth curve through solar-storage synergy.

For Jinko Solar, a loss of 6.8 billion yuan represents both a severe challenge and a transformative opportunity. Shifting from extensive expansion to high-quality development and from scale dependency to technology-driven value addition is a necessary evolution for industry leaders. Cyclical fluctuations are inherent to the sector; the ability to restore profitability and rebuild competitiveness during downturns will determine the company's standing in the next decade.

The consolidation and reshuffling of the photovoltaic industry continue, and Jinko Solar's loss may only be the beginning. Once price wars subside and excess capacity is eliminated, only companies with technological, cost, and global advantages will be able to navigate the cycle and embark on a new phase of growth.