JinkoSolar Holding Co., Ltd. Q1 FY2025 earnings call

• Market conditions: Prices in the solar industrial chain were low in Q1, impacted by international trade policy disruptions. Domestic new installations in China in Q1 were 59.7 gigawatts, up 31% year-over-year. - Product developments: Third-generation TOPCon products had mass-produced cell efficiency over 26.6%, and laboratory efficiency for perovskite tandem solar cell based on TOPCon reached 34.22%. - ESS: Shipments in Q1 exceeded 300 megawatt hours, with full-year guidance at 6 gigawatt hours, mainly in Asia Pacific, Europe, and emerging markets. - Supply chain: Flexibly adjusted supply chain strategy and regional shipment mix in response to market challenges, with order book visibility at 60%-70%, and Indo-Pacific and Middle East and Africa exceeding 80%.

Total revenue for the first quarter was US$1.9 billion. Module shipments were 17.5 gigawatts, accounting for approximately 90% of total shipments. First quarter ESS shipments exceeded 300 megawatt hours, with full-year guidance for ESS shipments at around 6 gigawatt hours. Total revenue was down 33% sequentially and 40% year-over-year due to lower module selling prices.

• Annual production capacity: Mono wafers 120 gigawatts, solar cells 95 gigawatts, solar modules 130 gigawatts, with third-generation TOPCon modules at 40-50 gigawatts by end of 2025. - Module shipments: Q2 expected to be 20-25 gigawatts, full-year 2025 expected to be 85-100 gigawatts. - ESS: Full-year guidance at 6 gigawatt hours.

• Market disruptions: Changes in international trade policies, like reciprocal tariffs in the US, continue to disrupt the PV industry. - Price fluctuations: Distributed module prices fell back from highs, and module prices and profitability were down year-over-year and sequentially. - Uncertainties: Uncertainties in international trade policies and market sentiment cooling due to policy deadlines.

Q: Could you give more details on where ESS shipments are going and where you source battery cells?

A: ESS shipment mix is mainly in Asia Pacific, Europe, and emerging markets; difficult to extend ESS business in US due to trade barriers. Sourcing details not specified.

Q: How are you thinking about future imports to the US after ADCBD?

A: ADCBD is preliminary tariffs with uncertainties; working on options to be competitive, still committed to US market with strategies like joint venture factories in Middle East.

Q: Thoughts on margins for ESS and if the company received IRA credits last year?

A: ESS gross margin expected in 5%-10% range. Filed IRA credits last year, exploring selling credits to investors this year.

Q: US shipment target and share buyback plans?

A: US shipment target range 5%-10% of total, plan to buy back shares and declare dividend as valuation is low; roughly $100 million for dividend plus repurchase.