JinkoSolar, a leading photovoltaic company with a market value of approximately 70 billion yuan, is facing a significant performance test after reporting its first annual loss since going public.

On the evening of February 27, JinkoSolar released its 2025 performance forecast, revealing a 29.18% year-on-year decline in annual revenue to 65.492 billion yuan. The company swung to a net loss attributable to shareholders of 6.786 billion yuan, marking its first annual loss since its listing in 2022.

JinkoSolar attributed the substantial performance decline primarily to falling prices in the photovoltaic industry, which led to decreased profits from its main operations.

The photovoltaic industry is currently undergoing a profound restructuring phase, placing continued pressure on JinkoSolar's performance. Data shows that from the fourth quarter of 2023 through the third quarter of last year, JinkoSolar's net profit attributable to shareholders has declined year-on-year for eight consecutive quarters.

Additionally, during the first three quarters of last year, JinkoSolar faced challenges including declining gross margins and reduced net cash flow from operating activities.

Notably, on February 24, U.S. photovoltaic company First Solar filed a Section 337 investigation request with the U.S. International Trade Commission (ITC), naming JinkoSolar and 46 other global industry leaders as respondents, alleging infringement of core TOPCon battery patents.

For JinkoSolar, which consistently derives over half of its revenue from overseas markets, its international business could be impacted by this development.

The photovoltaic industry is currently experiencing intense consolidation, with industry dynamics being reshaped. Inefficient capacity is being rapidly phased out, while leading companies are pursuing differentiated strategies to break through.

**70 Billion Yuan PV Giant Reports Huge Loss Over 6.7 Billion Yuan Last Year**

The 2025 performance forecast disclosed by JinkoSolar on the evening of February 27 highlights the difficult situation facing this photovoltaic leader.

According to the announcement, preliminary calculations indicate JinkoSolar achieved revenue of 65.492 billion yuan in 2025, a decrease of 29.18% year-on-year. It recorded a net loss attributable to shareholders of 6.786 billion yuan, a drastic swing from profit to loss representing a decline of 6959.5%.

In terms of asset status, as of the end of 2025, JinkoSolar's total assets stood at 119.159 billion yuan, a decrease of 1.61% from the beginning of the period. Equity attributable to owners of the parent company was 25.462 billion yuan, down 21.19% from the start of the period.

The company explained the significant performance downturn as mainly due to decreased profits from its main operations caused by declining photovoltaic industry prices.

JinkoSolar further noted in the announcement that during the reporting period, global photovoltaic supply chain price fluctuations intensified, compounded by disruptions from trade protection policies in overseas markets, putting overall pressure on profit margins across the integrated photovoltaic module supply chain.

In response to industry volatility, although JinkoSolar continued to promote capacity and technological upgrades, launching the industry-leading "Flying Tiger 3" high-efficiency module product, and saw rapid development in its energy storage business with significant synergies from solar-storage integration, the overall low price of photovoltaic modules during the reporting period, coupled with a relatively low shipment proportion of high-power products and asset impairment provisions, resulted in an annual loss.

For the new year, JinkoSolar anticipates the industry will move towards a high-quality development stage centered on technology and quality, with supply-demand dynamics expected to accelerate towards rebalancing.

Against this backdrop, JinkoSolar stated it will consolidate its leading advantages in technological innovation and globalization, striving to achieve high-quality development.

As of the market close on March 2, JinkoSolar's share price was 7.36 yuan per share, down over 20% from its intra-year high of 9.66 yuan per share, with a latest market capitalization of 73.638 billion yuan.

**Sharp Decline in Gross Margin, Overseas Business Faces Challenges**

Founded in 2006, JinkoSolar was listed on the Shanghai Stock Exchange's STAR Market in 2022. Its indirect controlling shareholder, JinkoSolar Holding Co., Ltd., was listed on the New York Stock Exchange in 2010.

Data shows that as early as 2012, JinkoSolar encountered a full-year net loss attributable to shareholders of 971 million yuan, but returned to profitability the following year.

For many years thereafter, JinkoSolar maintained a positive profit trend. Until last year, the company reported a loss again, with this substantial loss marking its first annual loss since its A-share listing.

Looking at quarterly performance, JinkoSolar's results remain under pressure. In the first quarter of 2025, revenue was 13.843 billion yuan, a year-on-year decrease of 40.03%, with a net loss attributable to shareholders of 1.39 billion yuan, down 218.2% year-on-year.

In the second quarter of 2025, the company's operating conditions worsened further. Revenue decreased 25.57% year-on-year to 17.988 billion yuan, and the net loss attributable to shareholders expanded to 1.519 billion yuan, a dramatic plunge of 6336.82% year-on-year.

This trend continued into the third quarter, with single-quarter revenue falling 34.11% year-on-year to 16.155 billion yuan, and a net loss attributable to shareholders exceeding 1 billion yuan.

Notably, extending the timeline further, from the fourth quarter of 2023 through the third quarter of last year, JinkoSolar's net profit attributable to shareholders has declined year-on-year for eight consecutive quarters.

Simultaneously, JinkoSolar's profitability showed a clear weakening trend. In the first three quarters of 2025, the company's gross profit margin was -0.07%, a sharp decrease of 9.75 percentage points year-on-year. Its net profit margin fell to -8.21%, down 9.93 percentage points from the same period last year.

Furthermore, performance on the key metric of cash flow was also unsatisfactory. In the first three quarters of 2025, net cash flow from operating activities was -1.341 billion yuan, a significant decrease of 267.83% year-on-year.

It is important to note that overseas revenue has long played a crucial role in JinkoSolar's income structure.

Data indicates that from 2020 through the first half of 2025, the proportion of the company's revenue from overseas operations was consistently high at 81.36%, 75.3%, 58.14%, 60.62%, 66.13%, and 64.51% respectively.

In 2024, North America contributed 24.26% of JinkoSolar's revenue, making it the second-largest revenue source after the domestic market.

However, entering 2026, JinkoSolar's overseas business may face new challenges.

According to media reports, on February 24, U.S. photovoltaic company First Solar filed a Section 337 investigation request with the ITC, naming Trina Solar, JinkoSolar, Canadian Solar, Hanwha, and 43 other global leaders as respondents, alleging infringement of core TOPCon battery patents.

Among them, eight JinkoSolar-related entities, including JinkoSolar Holding Co., Ltd., JinkoSolar Co., Ltd., JinkoSolar (Vietnam) Industrial Co., Ltd., and JinkoSolar (U.S.) Inc., were included in the list.

The core of this lawsuit is reportedly U.S. Patent No. US9130074, covering fundamental TOPCon manufacturing processes such as tunnel oxide layers and doped polysilicon layers.

TrendForce estimates that by the end of 2025, TOPCon battery cell capacity will reach approximately 967 GW, accounting for 83% of global total battery cell capacity, with actual output around 580 GW.

Data from CITIC Futures shows that as of March 2025, TOPCon technology accounted for a high 86.9% of China's photovoltaic cell production, far exceeding other technological routes.

According to InfoLink Consulting's 2025 global module shipment rankings, JinkoSolar tied for first place with LONGi Green Energy Technology. Furthermore, according to Huajing Industrial Research Institute, JinkoSolar ranked first in TOPCon module shipments within the industry.

Some analysts believe this lawsuit directly targets the capacity foundation and technological backbone of Chinese photovoltaic exports. As a TOPCon module giant, JinkoSolar's performance could be affected as a result.

**Industry Undergoes Deep Adjustment, PV Giants Employ Diverse Strategies**

In fact, JinkoSolar's significant loss forecast also reflects the triple challenges currently facing the photovoltaic industry: overcapacity, intense price competition, and high costs.

According to incomplete statistics, among listed companies across the photovoltaic产业链 that have disclosed 2025 performance forecasts, half showed signs of performance recovery, but 60% continued to report losses.

Among them, Tongwei Co., Ltd. forecast a loss of 9-10 billion yuan; TCL Zhonghuan projected a loss of 8.2-9.6 billion yuan; JA Technology anticipated a loss of 4.5-4.8 billion yuan; Trina Solar released a performance forecast on February 26, reporting a net loss attributable to shareholders of approximately 7 billion yuan last year.

Huajing Industrial Research Institute pointed out that 2025 marked a period of deep adjustment due to overcapacity in the photovoltaic industry. Total nominal capacity across the entire industry chain exceeded 1100 GW, but global actual installation demand was only about 600 GW, indicating a capacity redundancy exceeding 1.8 times.

As the supplier of 85% of global photovoltaic capacity, China's capacity utilization rates across various segments remained below 60%. Specifically, operating rates for polysilicon and modules were as low as 47% and 48%, respectively. The silicon wafer segment even experienced its first negative growth in nearly four years, with capacity dropping from 1153 GW in 2024 to 1088 GW, indicating the industry has shifted from "incremental expansion" to a "stock game" phase.

Against this industry backdrop, inefficient capacity began to exit at an accelerated pace. In the first half of 2025 alone, over 50 photovoltaic companies filed for bankruptcy liquidation, including 14 state-owned enterprises. Foreign companies like German giant Meyer Burger were also forced to shut down factories.

Leading companies, however, are "employing their unique strengths" to initiate differentiated breakthroughs. For example, Aiko Solar Energy is attempting to escape the shackles of price competition through technological barriers, focusing on ABC cell technology for iterative upgrades to reduce losses, forecasting a narrowed loss of 1.2-1.9 billion yuan last year.

LONGi Green Energy Technology formally entered the energy storage sector, leveraging "solar-storage synergy" to enhance its system solution capabilities and optimize its global business layout.

Meanwhile, two industry giants, TCL Zhonghuan and Tongwei Co., Ltd., initiated merger and acquisition activities. On January 16, TCL Zhonghuan announced plans to invest in Dawn Energy through share transfers, acceptance of voting rights delegations, and capital increases, aiming to accelerate its moderately integrated strategy.

TCL Zhonghuan stated this investment aligns with key assets required for its long-term strategy, helps synergize and optimize its photovoltaic cell and module capacity, enriches its product and customer structure, and enhances its comprehensive competitiveness.

On February 24, Tongwei Co., Ltd. issued a trading halt announcement, revealing plans to acquire a 100% equity stake in Qinghai Lihao Clean Energy Co., Ltd. through issuing shares and paying cash, and to raise supporting funds.

Public information shows Qinghai Lihao was founded in 2021. Its main business covers the R&D, production, and sales of photovoltaic-grade high-purity polysilicon and electronic-grade polysilicon, with its silicon material capacity ranking sixth in the industry.

By the end of 2025, Qinghai Lihao had built and put into operation high-purity polysilicon capacity exceeding 200,000 tons, with a further 100,000 tons under construction.

Analysis suggests Tongwei's move aims to further consolidate its leading industry position and strengthen its influence in capacity integration, technological synergy, and market pricing.

Upon completion of the acquisition, Tongwei's total capacity is expected to reach 1.11 million tons, potentially increasing its market share to around 34%, thereby widening the gap with other competitors.

It is worth noting that JinkoSolar, also an industry giant, sold its loss-making asset, Jinko New Materials, last year at a high premium rate of 299.08%. The transaction consideration was 80 million yuan, and the profit generated from this transaction is expected to account for over 50% of the company's audited net profit from the most recent fiscal year.

Following its first loss since listing last year, what development path lies ahead for JinkoSolar? This will be subject to ongoing observation.