JinkoSolar Holding Co., Ltd. Q3 FY2025 earnings call

• Global module shipments in the first three quarters of 2025 were 61.9 GW, ranking first worldwide.
• Gross margin improved sequentially to 7.3% in Q3 after two consecutive quarters of improvement.
• Energy storage R&D efforts bore fruit with cumulative ESS shipments exceeding 3.3 GWh in the first three quarters, expected to double in 2026.
• High-power product upgrades made progress, with expectation that high-power product shipment proportion will be 60% or above in 2026.
• Focused on higher-value overseas markets, with shipments in Q3 accounting for over 65% of total.
• Topped PV Tech 2025 module test and reliability report with triple-A rating, and was recognized as a tier-one energy storage provider for the seventh consecutive quarter.
• MSCI ESG upgraded to A rating, S&P CSA score improved to 78.

In the first three quarters of 2025, JinkoSolar's global module shipments totaled 61.9 gigawatts, ranking first worldwide. In Q3, total revenue was $2.27 billion, down 10% sequentially and 34% year over year, with a gross margin of 7.3%. The energy storage business saw cumulative ESS shipments exceed 3.3 gigawatt-hours in the first three quarters, and is expected to more than double in 2026, with its revenue contribution set to rise significantly. Solar module shipments contributed the majority of revenue, while energy storage is emerging as a key growth driver.

• Full year 2025 total shipments (solar modules, cells, wafers) expected to be between 85 gigawatts to 100 gigawatts.
• 2025 ESS shipments expected to be 6 gigawatt-hours.
• Expect high-power product shipment proportion to increase to 60% or above in 2026.
• Global PV demand expected to have slight contraction in 2026, while ESS demand expected to experience explosive growth.
• Total CapEx for 2025 and 2026 roughly 5 billion RMB.

• Regulatory uncertainties, such as foreign entity of concern (FIEC) requirements in the US.
• Volatility in raw material prices, which can impact module prices and margins.
• Delayed demand release due to ongoing bidding rule implementations and IRR recalculations by central and state-owned enterprises.

Q: Can you share color on the difference in gross margins compared to Canadian Solar and provide color on storage and solar gross margin difference and Q4 margins?

A: Compared to peers, gross margin difference is due to different revenue contribution from energy storage. Energy storage gross margin expected to be 15%-20% with significant revenue contribution in 2026. Q4 margins expected to be relatively stable vs Q3 but ESS business contribution not significant yet.

Q: What is the geographical shipment mix for 2026 ESS shipments?

A: Non-China region to be roughly 70%-80%, including the US, with strong pipeline in Europe, Latin America, and Asia Pacific.

Q: How does JinkoSolar plan to comply with foreign entity of concern requirements for US market?

A: Believes there will be no significant negative impact from FIEC compliance, exploring options for solar module facilities in the US and shaping global supply chain to meet long-term demands.

Q: What is the outlook for Q4 module shipments and industry module shipments in 2025?

A: Q4 module shipments expected to be close to lower end of 18-33 GW range. Industry module shipments in 2025 estimated to be around 700 gigawatts in production terms.

Q: What is the CapEx target for 2025 and 2026 and margin outlook as ESS is blended in?

A: CapEx target roughly 5 billion RMB for both 2025 and 2026. Difficult to provide specific Q1/Q2 2026 module ASP and margin trajectory due to upcoming policy uncertainties.