• Revenue: $1.91 billion for Q1 2025, down 33% sequentially and 40% year-over-year.
• Net Loss: Approximately $180 million for Q1 2025.
• Gross Margin: Decreased both sequentially and year-over-year.
• Total Shipments: 19.1 gigawatts, with module shipments accounting for approximately 90%.
• Operating Expenses: $350 million, down 8% sequentially and 18% year-over-year.
• Operating Loss Margin: About 20% compared to 9% in Q4 last year and 1.5% in Q1 last year.
• Cash and Cash Equivalents: $3.77 billion at the end of Q1 2025, up from $2.44 billion at the end of Q1 last year.
• Total Debt: $6.4 billion at the end of Q1 2025.
• Net Debt: $2.6 billion at the end of Q1 2025.
• Asset Liability Ratio: Approximately 74% at the end of Q1 2025.
• Inventory Turnover Days: 84 days compared to 57 days in Q4 last year and 89 days in Q1 last year.

• Warning! GuruFocus has detected 5 Warning Signs with JKS.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• JinkoSolar Holding Co Ltd (NYSE:JKS) reported a significant increase in energy storage shipments, exceeding 300 megawatt hours in the first quarter, with expectations to reach 6 gigawatt hours for the full year 2025.
• The company achieved a new record in laboratory efficiency for peroxide tandem solar cells, reaching 34.22%, showcasing its commitment to R&D and technological advancements.
• JinkoSolar Holding Co Ltd (NYSE:JKS) maintained a strong market presence with shipments to overseas markets accounting for approximately 70% of total shipments, with significant growth in the Indo-Pacific and North Asia markets.
• The company was recognized as a Tier 1 energy storage provider by Bloomberg for four consecutive quarters, highlighting its reliable energy storage solutions.
• JinkoSolar Holding Co Ltd (NYSE:JKS) plans to buy back shares and declare dividends, indicating a commitment to shareholder returns.

Negative Points

• JinkoSolar Holding Co Ltd (NYSE:JKS) reported a net loss of approximately $180 million for the first quarter, impacted by low prices and disruptions in demand due to international trade policies.
• The company experienced negative gross margins for the first time in several years, reflecting supply and demand imbalances and seasonal challenges.
• Total revenue decreased by 33% sequentially and 40% year-over-year, primarily due to a decrease in shipments and average selling prices of solar modules.
• Operating expenses accounted for 18% of total revenues, up from 13% in the previous quarter and the same quarter last year, indicating increased cost pressures.
• The asset liability ratio remained high at approximately 74%, although slightly improved from the previous year, suggesting ongoing financial leverage challenges.

Q & A Highlights

Q: Can you provide more details on the ESS shipments and where they are headed? Also, where are you sourcing your battery cells? A: The ESS shipments are primarily targeted at the Asia Pacific, Europe, and emerging markets, with China also being a key focus. These regions differ slightly from our module shipments due to trade barriers in the US, which make it challenging to expand the ESS business there. (Haiyun Cao, Finance Director, Deputy General Manager)

Q: With the ADCBD determination being more favorable for Malaysia, how do you see your future imports to the US? A: The ADCBD tariffs are preliminary, and there remains uncertainty with a sunset determination after 12 months. We are exploring different options to provide more certainty and competitiveness in costs. We remain committed to the US market through joint ventures in the Middle East and local operations in the US. (Haiyun Cao, Finance Director, Deputy General Manager)

Q: What are your expectations for gross margins in Q2 and Q3, and when do you expect them to return to positive? A: The negative gross margin in Q1 was due to supply-demand imbalances and seasonal factors. We expect margins to improve slightly in Q2 as module prices trend upward. By the second half of the year, we anticipate stability and potential improvement, as the current situation is unsustainable for top-tier companies. (Haiyun Cao, Finance Director, Deputy General Manager)

Q: Can you provide guidance on the margins for your ESS business? A: We are targeting a gross margin range of 5% to 10% for our ESS business. While profitability is not the primary focus, we are confident in penetrating key markets like Asia Pacific and North America. (Haiyun Cao, Finance Director, Deputy General Manager)

Q: What is your US shipment target for this year, and is there inventory in the US to support it? A: We aim for US shipments to account for 5% to 10% of total shipments, translating to around 4 to 5 gigawatts. However, uncertainties could impact this target. We are confident in achieving at least 5% if supply chain issues are resolved. (Haiyun Cao, Finance Director, Deputy General Manager)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.