JinkoSolar Q4 2025 Earnings Call - Shipments Lead but Margins Bite, Storage Set to Double in 2026
Summary
JinkoSolar closed 2025 once again as the world’s largest module shipper with 86 GW (26 GW in Q4), but scale did not spare the company a painful margin correction. Persistent low module ASPs, a spike in silver prices and FX moves pushed the company from profit into a FY net loss, even as operating cash flow finished positive for the year. Management is leaning on a two-pronged fix: press on high-efficiency, premium modules and accelerate energy storage, which they expect to more than double in 2026 and become the primary profitability lever.
The call mixed hard numbers and strategic pivots. JinkoSolar stuck to aggressive production and R&D targets, forecasting roughly 100 GW integrated capacity by end-2026 and guiding 2026 module shipments to 75 GW to 85 GW. Still, investors should note compressed gross margins (Q4 0.3% vs Q3 7.3%; FY 2.2% vs 10.9% in 2024), an adjusted net loss of about $408 million, and near-term commodity and FX risks that could continue to whipsaw results before storage and higher-efficiency mix restore pricing power.
Key Takeaways
- Shipments and ranking: Full-year 2025 module shipments were 86 GW, Q4 shipments 26 GW, marking JinkoSolar’s seventh consecutive year as the industry’s top shipper.
- Profitability swung: The company moved from profitability in 2024 to a net loss in 2025, with adjusted net loss attributable to ordinary shareholders around $408 million after excluding certain fair value, one-off and impairment items.
- Revenue and margins: Q4 revenue was $2.5 billion (up 8.3% sequentially, down 15% year-over-year). Q4 gross margin plunged to 0.3% from 7.3% in Q3; full-year gross margin was 2.2% versus 10.9% in 2024.
- Operating cash flow positive: Operating cash flow was about $470 million in Q4 and roughly $280 million for full-year 2025, meeting management’s target to finish the year with positive operating cash flow.
- Commodity and FX pain points: Management attributed most of the Q4 margin deterioration to a sharp rise in silver prices (management cited a 250%–300% move), RMB appreciation against the dollar, and a smaller impact from polysilicon cost increases.
- Energy storage ramp: ESS shipments were reported at 5.2 GWh in 2025. Management said between 1.0 GWh and 1.7 GWh was recognized as revenue (the call contained differing statements on the recognized figure). They expect ESS shipments to more than double in 2026 and cited signed and high-potential ESS orders exceeding 10 GWh.
- ESS margin target: Management targets ESS system gross margins in the 10%–15% range, while noting lithium price pressure remains a headwind.
- Product and technology leadership: N-type TOPCon cell lab efficiency reached 27.79%; TOPCon-perovskite tandem reached 34.76% in lab. JinkoSolar holds over 700 TOPCon-related patents and partners with XtalPi on AI-driven perovskite R&D.
- High-efficiency product strategy: Shipments of >640 W modules rose to about 3 GW in Q4, carrying a reported premium of $0.01 versus conventional products. The Tiger Neo 3 series tops out at 670 W and is being scaled.
- 2026 production and shipment guidance: Management expects integrated production capacity of about 100 GW by end-2026 (including 14 GW overseas). Module shipment guidance for 2026 is 75 GW to 85 GW, with Q1 2026 shipments guided to 13 GW–14 GW.
- Geographic mix shift: Overseas markets were about 60% of 2025 shipments; China comprised roughly 40% in 2025 and management expects China exposure to decline to about 30% in 2026 as overseas share grows.
- U.S. exposure and risks: U.S. shipments were ~5% of total in 2025, expected to be 5%–10% in 2026 (management midpoint target). Management said ongoing litigation with First Solar should not disrupt U.S. operations, and FEOC/Brownfield negotiations for Jacksonville manufacturing are in late stages.
- Capital spending and depreciation: Depreciation in 2025 was roughly $1 billion; 2025 CapEx was roughly $1 billion. 2026 CapEx guidance was reduced to about RMB 5 billion (roughly $700 million).
- Balance sheet and leverage: End-Q4 cash and cash equivalents were RMB 3.3 billion, total debt ~CNY 6.7 billion, and net debt ~CNY 3.44 billion. Inventory and AR days improved sequentially (inventory days 75 vs 90; AR days 94 vs 105).
- Manufacturing and cost programs: Silver-coated copper development is on track for large-scale ramp in 2026. Lighthouse factory projects like the Shanxi Super Factory are delivering efficiency gains and a replicable global manufacturing blueprint.
- Geopolitical and market risks: Management flagged short-term disruption and logistics re-planning from Middle East conflict, potential consolidation of weaker industry players, and ongoing currency exposure; they are exploring customer pricing in RMB and hedging to reduce FX pain.
Full Transcript
Operator: Hello, ladies and gentlemen, and thank you for standing by for JinkoSolar Holding Co., Ltd.’s fourth quarter 2025 earnings conference call. At this time, all participants are in listen-only mode. After management’s prepared remarks, there will be a question and answer session. As a reminder, today’s conference call is being recorded. I would now like to turn the meeting over to your host today for today’s call, Ms. Stella Wang, JinkoSolar’s Investor Relations. Please proceed, Stella.
Stella Wang, Investor Relations, JinkoSolar Holding Co., Ltd.: Thank you, operator. Thank you everyone for joining us today for JinkoSolar’s fourth quarter 2025 earnings conference call. The company’s results were released earlier today and available on the company’s IR website at www.jinkosolar.com, as well as on news wire services. We have also provided a supplemental presentation for today’s earnings call, which can also be found on the IR website. On the call today from JinkoSolar are Mr. Li Xiande, Chairman and CEO of JinkoSolar Holding Co., Ltd.; Mr. Pan Li, CFO of JinkoSolar Holding Co., Ltd.; and Mr. Charlie Cao, CEO of JinkoSolar Co., Ltd. Mr. Li will discuss JinkoSolar’s business operations and company highlights. Since our CMO, Mr. Gener Miao, is currently on a business trip, I will deliver the remarks on sales and marketing on his behalf. Following that, Mr. Pan Li will walk through the financials.
After that, we will open the call for questions. Please note that today’s discussion will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, our future results may be materially different from the views expressed today. Further information regarding this and other risks is included in JinkoSolar’s public filings with the Securities and Exchange Commission. JinkoSolar does not assume any obligation to update any forward-looking statements except as required under the applicable law. It’s now my pleasure to introduce Mr. Li Xiande, Chairman and CEO of JinkoSolar Holding. Mr. Li will speak in Mandarin, and I will translate his comments into English. Please go ahead, Mr. Li.
Li Xiande, Chairman and CEO of JinkoSolar Holding Co., Ltd., JinkoSolar Holding Co., Ltd.: 2025年，全球光伏行业在供需结构调整与贸易环境变化中经历了较大波动，产业链盈利阶段性承压。在这充满挑战的环境中，我们坚持稳健经营和技术引领，在推进N型TOPCon技术升级和高效率产品的迭代。2025年全年组件出货量达到86GW，第七次位列行业第一。但受组件价格持续低位、高功率产品出货量占比有待提升、落后产能淘汰等因素影响，全年经营业绩仍阶段性承压，同比由盈利转为亏损。四季度由于硅料、白银等原材料价格上涨以及汇率波动的影响，毛利率环比下降，净亏损环比扩大。但值得欣喜的是，我们持续推进从产品供应商到综合能源解决方案提供商的转型，储能产品的出货量规模同比显著提升，达到5.2GWh，其中有1.0GWh确认收入。我们有信心在高价值市场持续渗透，将推动2026年储能系统出货量实现翻倍的增长，成为推动整体盈利改善的重要引擎。
Stella Wang, Investor Relations, JinkoSolar Holding Co., Ltd.: The global PV industry continued to experience volatility due to structural imbalances and a shifting trade environment in 2025, impacting financials across the industrial chain. In this challenging environment, we maintained disciplined operations and our technological leadership, continuously driving upgrades of our N-type TOPCon technology and iterating our high-efficiency products. For the full year 2025, total module shipments reached 86 GW, ranking first globally for the seventh consecutive year. Impacted by persistently low module prices, the elimination of obsolete production capacity, and a still-evolving product mix as high-efficiency products ramp up, we incurred a net loss for the full year. In the fourth quarter, growth margin decreased sequentially, and our net loss expanded due to rising costs of raw materials such as polysilicon and silver, as well as foreign exchange rate fluctuations.
However, our energy storage business maintained its rapid growth trajectory, marking an important step in our ongoing transformation into an integrated energy solutions provider. Shipments of ESS grew significantly year-over-year to 5.2 GW in 2025. That’s approximately 1.7 GWh recognized as revenue. Our deepening penetration into high-value markets is expected to more than double ESS shipments in 2026, serving as a primary driver for enhancing our profitability profile.
Li Xiande, Chairman and CEO of JinkoSolar Holding Co., Ltd., JinkoSolar Holding Co., Ltd.: 四季度以来，国家对光伏行业高质量发展的引导持续加强，一系列政策组合拳持续推进落后产能出清和竞争秩序规范，引导行业从规模和价格的竞争逐步走向质量与价值的竞争。头部企业主动响应行业高质量发展的要求，推动组件价格逐渐回归理性水平。一季度在白银等淡季价格上涨的成本压力传导下，叠加出口退税政策对组件出口需求的拉动，组件价格环比四季度已出现明显回升。随着行业竞争秩序的逐步规范和供需关系的边际改善，组件价格有望保持相对稳定，高工以及差异化产品仍具备一定溢价空间。
Stella Wang, Investor Relations, JinkoSolar Holding Co., Ltd.: Since the fourth quarter, government guidance supporting the high-quality development of the PV industry has continued to strengthen. A series of policy measures has steadily accelerated the phasing out of outdated capacity and the normalization of market competition, guiding the industry to gradually transition from competing on scale and price to quality and value. Leading companies have actively responded to these high-quality development directives, pushing module prices back to reasonable levels. In the first quarter of 2026, driven by the pass-through of cost pressures from rising commodity prices such as silver, coupled with the impact of export tax rebates on demand, module prices rebounded significantly sequentially. As the industry’s competitive landscape continues to normalize and supply and demand dynamics marginally improve, module prices are expected to remain relatively stable, with high efficiency and differentiated products continuing to command a premium.
Li Xiande, Chairman and CEO of JinkoSolar Holding Co., Ltd., JinkoSolar Holding Co., Ltd.: 我们持续推动技术突破，引领行业创新方向。截至2025年底，N型TOPCon电池效率达到27.79%，N型TOPCon钙钛矿叠层的电池效率达到34.76%。作为全球TOPCon技术的引领者，截至四季度末，我们已经获得超700件N型TOPCon电池授权专利，成为全球持有TOPCon授权专利最多的公司之一。此外，我们与晶泰科技合作，推动AI在钙钛矿叠层电池研发中的应用，加速下一代技术的产业化过程。
Stella Wang, Investor Relations, JinkoSolar Holding Co., Ltd.: We continue to drive technological breakthroughs and lead the direction of industry innovation. As of the end of 2025, the maximum lab efficiency of our N-type TOPCon cells reached 27.79%, while conversion efficiency of our N-type TOPCon-based perovskite tandem cell reached 34.76%. As a global leader for TOPCon technology, we held over 700 TOPCon patents by the end of the fourth quarter, surpassing most of our competitors. Furthermore, we partner with XtalPi to drive the application of AI in R&D of perovskite tandem cell and accelerate the commercialization of next generation technologies.
Li Xiande, Chairman and CEO of JinkoSolar Holding Co., Ltd., JinkoSolar Holding Co., Ltd.: 我们持续推动产品升级和新老迭代，不断提升产品竞争力。四季度640瓦以上的高功率产品出货量环比提升达到3GW，相较常规产品有$0.01的溢价。随着最高效率可达到670瓦的非氟化产品系列产品在今年逐步放量，并在多样化场景中加快渗透，高性能产品的价值优势将逐步体现，其溢价能力有望持续释放。
Stella Wang, Investor Relations, JinkoSolar Holding Co., Ltd.: We continue to drive product upgrades and performance iterations, consistently enhancing product competitiveness. In the fourth quarter, shipments of high-efficiency products that exceed 640 watts increased sequentially to approximately 3 GW, $0.01 premium compared to our conventional products. As our Tiger Neo, the third generation of Tiger Neo series, which delivers maximum power output of 670 watts, sequentially scales up production volume and shipments this year, and accelerates market penetration across diverse application scenarios. The value proposition of our high-performance products will increasingly stand out and is expected to command a higher premium.
Li Xiande, Chairman and CEO of JinkoSolar Holding Co., Ltd., JinkoSolar Holding Co., Ltd.: 我们持续强化产业周期的成本控制能力，通过供应链优化、技术升级，对冲原材料价格波动影响。银包铜的技术开发符合预期，预计2026年将实现大规模放量。我们在智能端的努力也逐步体现成效。以山西超级工厂为代表的灯塔工厂项目，一体化贯通的生产模式持续提升我们生产效率和成本的竞争力，为全球制造布局提供了可复制的经验。
Stella Wang, Investor Relations, JinkoSolar Holding Co., Ltd.: We continue to enhance our cost control capabilities across market cycles, offsetting the impact from raw material price fluctuations through supply chain optimization and technological upgrades. Development of silver-coated copper technology is progressing as planned. With large scale production expected to gradually ramp up in 2026. Our initiatives in smart manufacturing have already begun to generate initial results. Through our lighthouse projects represented by Shanxi Super Factory, our vertically integrated production model continues to improve production efficiency and cost competitiveness, providing replicable blueprints for our global manufacturing footprint.
Li Xiande, Chairman and CEO of JinkoSolar Holding Co., Ltd., JinkoSolar Holding Co., Ltd.: 储能业务方面，公司将其作为重要培育的第二增长曲线，我们持续强化关键技术研发，提升系统解决方案的竞争力，优化本土化客户服务及全生命周期服务响应能力。同时，依托光伏业务快速构建的全球渠道，有序放大储能系统出货规模，光储协同效应逐步显现。截至目前，2026年储能已签订单和高签订单合计超过10GW。随着全球能源转型推进及电力系统对应灵活性需求的提升，储能在新型能源体系中的作用持续增强。展望2026年，我们将持续聚焦高价值市场的布局，探索包括零碳园区、数据中心在内的应用市场。
Stella Wang, Investor Relations, JinkoSolar Holding Co., Ltd.: We view our energy storage business as a strategically vital second growth engine. We continue to strengthen our R&D for our core technologies, enhance our system solution capabilities, and improve localized customer service and lifecycle support. Leveraging our global PV distribution channels, we are steadily scaling ESS shipments and greater synergies between our solar and storage solutions are increasingly materializing. Currently, our signed and high potential ESS orders exceeded 10 GWh in total. As the global energy transition advances and the demand for greater flexibility increases, the role of energy storage within renewable energy systems continues to strengthen. Looking ahead to 2026, we will continue to deepen penetration into high-value markets and explore application scenarios, including zero-carbon industrial parks and data centers.
Li Xiande, Chairman and CEO of JinkoSolar Holding Co., Ltd., JinkoSolar Holding Co., Ltd.: 我们持续优化全球制造和供应链布局，提升对不同市场政策与客户需求的适应能力。美国2GW型组件产能保持在较高利用率，本土化制造和服务能力持续增强。我们也在积极探索在重要市场的长期参与模式，以更好满足客户对高效产品和解决方案的需求。
Stella Wang, Investor Relations, JinkoSolar Holding Co., Ltd.: We continue to optimize our global manufacturing and supply chain footprint, enhancing our ability to adapt to diverse market policies and customer needs. Our 2 GW N-type module facility in the U.S. maintained high utilization rates as we continue to strengthen local manufacturing and service capabilities. We are also actively developing new models for long-term engagement in key markets to better address customer demands for high-efficiency products and solutions.
Li Xiande, Chairman and CEO of JinkoSolar Holding Co., Ltd., JinkoSolar Holding Co., Ltd.: 2025年是十四五规划的收官之年，风光累计装机首次超越火电，成为第一大电源。与此同时，光伏发电全面进入市场化阶段，行业的发展逻辑正由规模化扩张转向更加注重运营能力和综合价值的提升，对企业的技术和产品竞争力提出了更高要求。近期全球能源市场波动进一步凸显能源安全的重要性，也在持续强化可再生能源的长期价值。展望中长期，随着新型电力系统建设推进，数据中心等新型负荷快速发展，光储加储能的应用场景持续拓展，绿色电力的价值在不断提升。行业竞争将从以成本和规模为导向，逐渐转向以技术创新、产品竞争力和光储系统解决方案的能力为核心的竞争。
Stella Wang, Investor Relations, JinkoSolar Holding Co., Ltd.: 2025 marked the final year of the 14th Five-Year Plan, during which cumulative installed capacity of wind and solar power surpassed the coal-fired power for the first time, becoming the largest source of electricity generation. At the same time, solar power generation has fully entered a market-driven phase. The industry’s development framework is shifting from scaled expansion towards greater emphasis on operational capabilities and comprehensive value creation, which raises the competitive bar for technology and products. At the same time, recent volatility in global energy markets has highlighted the critical need for energy security, reinforcing the long-term value of renewable energy. Looking forward to the medium to long term, as the construction of new power systems advances and new load demand grows from data centers, for example, application scenarios for solar and storage will continue to broaden, enhancing the value of green power.
Industry competition will gradually transition from being cost and scale driven to a model centered on technological innovation, product competitiveness, and the ability to deliver integrated solar-plus-storage solutions.
Li Xiande, Chairman and CEO of JinkoSolar Holding Co., Ltd., JinkoSolar Holding Co., Ltd.: 我们将持续巩固技术领先优势，深化全球化布局，加快光储一体化发展，不断提升综合解决方案能力，在行业格局和重塑过程中，持续增强公司的长期竞争力及盈利能力。
Pan Li, CFO of JinkoSolar Holding Co., Ltd., JinkoSolar Holding Co., Ltd.: 话题交给Stella Wang之前，我来介绍一下业绩指引。预计2026年底，我们的一体化产能将达到约100个吉瓦，其中海外一体化产能14个吉瓦。2026年全年组建出货量在75个吉瓦到85个吉瓦之间。2026年第一季度组建出货量在13个吉瓦到14个吉瓦之间。
Stella Wang, Investor Relations, JinkoSolar Holding Co., Ltd.: We will continue to consolidate our technological leadership, deepen our global footprint, accelerate the development of our integrated solar plus storage strategy, and consistently improve our capabilities to deliver comprehensive solutions. This will steadily strengthen our long-term competitiveness and profitability as the industry landscape reshapes. Before turning over to Stella Wang, I would like to go over our guidance for the full year of 2026. We expect annual integrated production capacity to reach approximately 100 GW by the end of 2026, including 14 GW from overseas facilities. We expect module shipments to be between 13 GW-14 GW for the first quarter of 2026, and between 75 GW-85 GW for the full year 2026. Thank you, Ms. Li. We are pleased to report that both our robust global sales networks and strong product competitiveness drove quarterly and annual module shipments to once again rank first across the industry.
Total shipments were 26 GW in the fourth quarter, with solar module accounting for nearly 93% of the mix. For full year, total module shipments were 86 GW. Geographically, overseas markets remained our primary driver, accounting for about 60% of total module shipments in 2025. We actively capitalized on growing demand across Asia Pacific and emerging markets, which together accounted for nearly 40%. Shipments to the U.S. were in line with our expectations and accounted for approximately 5%. We continued to optimize our product mix, increasing the proportion of high-efficiency product shipments and focusing on high-value application scenarios. These high-efficiency modules, highlighted by the third generation of Tiger Neo series, have earned widespread recognition for their higher power generation and better LCOE. The order book for these modules has grown steadily since the fourth quarter, allowing us to command a premium over conventional products.
As we continue to enhance our product competitiveness, our brand reputation and customer recognition have strengthened in tandem. In BNEF’s latest global energy storage Tier 1 list for the first quarter of 2026, we are recognized as a Tier 1 energy storage provider for eighth consecutive quarter. Furthermore, we achieved an S&P Global CSI score of 78 points, the highest one among PV module companies, and we were included in their 2026 sustainability yearbook. On the demand side, recent policy guidance and the discussions during China’s Two Sessions and subsequent industry forums have reinforced the strategic focus on energy efficiency, carbon reduction and zero carbon industrial parks. This provides a solid foundation for the continued growth in China’s solar market during the 15th Five-Year Plan.
Globally, the ongoing global electrification process, the continuous growth of new power loads from data centers and increased focus on energy security following recent energy crisis are collectively driving demand. Low cost of solar and solar-plus storage solutions and their deployment flexibility are ideally positioned to address these issues, enhancing energy system resilience and facilitating seamless incremental power demand for countries. By the end of the fourth quarter of 2025, cumulative global module shipments surpassed 390 GW, with our sales network covering nearly 200 countries and regions. Notably, total cumulative shipments of our Tiger Neo series exceeded 220 GW, ranking first in the industry as we continue to reinforce our global market leadership and strong customer base. 2026 marks our 20th anniversary, and we are using this milestone as an opportunity to further strengthen our product, brand and customer service systems to continuously enhance our competitiveness in the global market.
With that, I’ll turn the call over to Pan Li.
Pan Li, CFO of JinkoSolar Holding Co., Ltd., JinkoSolar Holding Co., Ltd.: Thank you, Stella. In the challenging fourth quarter, we achieved a 20.9% sequential increase in solar module shipments and a slight sequential increase in total revenues. Our operating efficiency improved significantly from last quarter. Operating cash flow was approximately $470 million in the fourth quarter and $280 million for the full year 2025, hitting the target we set at the beginning of the year to reach positive full year operating cash flow. Looking ahead to 2026, we expect full year operating cash flow to remain positive. Looking at our fourth quarter financials in more detail. Total revenue was $2.5 billion, up 8.3% sequentially and down 15% year-over-year. The sequential increase was primarily driven by increase in solar module shipments, while the year-over-year decrease was mainly due to a decrease in average selling price of modules.
Gross margin was 0.3% compared with 7.3% in the third quarter 2025, and 3.8% in the fourth quarter 2024. The sequential decrease was mainly due to a higher unit cost for products sold, while the year-over-year decrease was mainly due to a decrease in average selling price of modules. Total operating expenses were CNY 473.6 million, up 28% sequentially and 21% year-over-year. The sequential and year-over-year increases were mainly due to an increase in the impairment of long-lived assets in the fourth quarter of 2025. Total operating expenses accounted for 18.9% of total revenues, compared to 16% in the third quarter. Operating loss margin was 18.6% compared with 8.7% in the third quarter. Now let me briefly review our 2025 full year financial results. Total module shipments were 86 gigawatts, down 7.3% year-over-year.
Total revenues were about CNY 9.4 billion, down 29% year-over-year. The decrease was mainly attributed to the decrease in the average selling price of solar modules. For the full year, gross profit was $201 million, a decrease of 86% year-over-year. Gross margin was 2.2% compared to 10.9% in 2024, primarily due to a decrease in average selling price of modules. Total operating expenses were CNY 1.48 billion, down 23% year-over-year, primarily due to a reduction in shipping costs driven by lower volumes of solar module shipments and declining average freight rate in 2025, as well as lower employee compensation cost. Operating loss margin for full year of 2025 was 13.6%, compared with 3.6% for the full year of 2024.
Excluding the impact of the changes in fair value of convertible notes issued by JinkoSolar in 2023, changes in the fair value of the long-term investments, share-based compensation expenses, the net loss resulting from a fire incident at one of our production facilities in Shaanxi Province in 2024 and the impairment of the long-lived assets, adjusted net loss attributable to JinkoSolar Holding’s ordinary shareholders were about $408 million in 2025. Moving to the balance sheet. At the end of the fourth quarter, our cash and cash equivalents were RMB 3.3 billion compared even at the end of the third quarter of 2025, and RMB 3.8 billion at the end of fourth quarter of 2024. AR turnover days were 94 days compared with 105 days in the third quarter. Inventory turnover days was 75 days compared to 90 days in the third quarter.
As these metrics show, operating efficiency is steadily improving. At the end of the fourth quarter, total debt was about CNY 6.7 billion compared to CNY 5.56 billion at the end of the fourth quarter of 2024. Net debt was CNY 3.44 billion compared to CNY 1.76 billion at the end of the fourth quarter of 2024. This concludes our prepared remarks. We’re now happy to take your questions. Operator, please proceed.
Operator: Thank you. If you would like to ask a question, please press star one on your telephone and wait for your name to be announced. If you would like to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Your first question today comes from Philip Shen from Roth Capital Partners. Please go ahead.
Philip Shen, Analyst, Roth Capital Partners: Hi, everyone. Thank you for taking my questions. I wanted to get your outlook and assumption for pricing for Q1 and Q2. I think in your prepared remarks, you said you expect the global ASP to be stable. Are you assuming $0.10/W in Q1 and Q2? Can you also talk about your gross margin cadence as we get through the year? Do you think Q1 is a low? Is it lower than Q4? Can it go higher from here? Thanks. Hello. Are you guys speaking? Did you guys hear my question?
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: Oh, sorry. Philip, this is Charlie. I’m muting my phone. Can you hear me?
Philip Shen, Analyst, Roth Capital Partners: Okay. Hey, Charlie. Yeah, I can hear you now. We didn’t.
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: Okay.
Philip Shen, Analyst, Roth Capital Partners: At all.
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: Let’s get back to your question. If you look at the price index, the market pricing, and I think the market price index is rebounding in the last 3-5 months, and reflecting the cost inflation as well as I think most of the Tier 1 companies is more disciplined and as well as there is a backdrop of anti-involution. If we talk about specifically Q1, Q2, the ASP, we expect that quarter by quarter, the ASP will improve gradually. It’s a combination of the price inflation as well as we are marketing the next generation Tiger Neo 3 high-efficiency products. That is why I think we get a lot of attention from our customers and there is a price premium. It’s a combination.
I think the market price is up and the players are more disciplined and we have more mix on the high-efficiency products.
Philip Shen, Analyst, Roth Capital Partners: Great. We can see the pricing improve. Can you quantify at all? Q1, do we see $0.11? Q2, do we see $0.12? Can you also speak to Q1 and Q2? Thanks, Charlie.
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: Yeah. I think, we’re not in a position to disclose the detail, ASP, forward-looking. If you look at the market price, I think you’re right, it’s the price level, depending on different products and different regions. It’s roughly in the range of, I think, $11.5-$14, depending on different markets, different products in different regions.
Philip Shen, Analyst, Roth Capital Partners: Okay. The gross?
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: Thank you.
Operator: Thank you. Your next question comes from Rajiv Chaudhri from Samsara Capital. Please go ahead.
Rajiv Chaudhri, Analyst, Samsara Capital: Good morning. I just have a few questions. The first one is on the gross margin impact of the three factors you mentioned in Q4, the foreign exchange, the U.S. dollar rate, cost of silver and the cost of polysilicon. Can you break down for us the significance of each of these factors? Just give us a sort of, if these factors had not shifted from Q3, what the gross margin could have been in Q4, so we understand what the impact was?
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: Yes. I think back to the questions. I think if nothing changed, we expect the Q4 margin should be stable or maybe a little bit higher in the fourth quarter. Fourth quarter, there are some headwinds and just as you are talking about. If we look at the magnitudes, the first one will definitely be the commodities, particularly the silver. I think the market price is up 250%-300%. That’s a dramatic change. Second one will be the RMB appreciation. Polysilicon, the price is a little bit higher in Q4, but it’s not significant impact.
Rajiv Chaudhri, Analyst, Samsara Capital: Okay. Silver was number one, the exchange rate number two, and polysilicon much less. Great. Thanks. Next question is on depreciation and CapEx. What were the depreciation and CapEx numbers for 2025 and what is your target for 2026?
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: The depreciation per year in 2025, it’s roughly $1 billion per year.
Rajiv Chaudhri, Analyst, Samsara Capital: Okay.
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: The CapEx in 2025 I think roughly it’s the same number. It’s $1 billion. It’s a totally different number. Okay. It’s a coincidence. Definitely, 2026, we will further cut. The CapEx is, I think, roughly RMB 5 billion and roughly $700 million. We-
Rajiv Chaudhri, Analyst, Samsara Capital: Yeah
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: We make the investment on the CapEx, particularly the last year. The purpose was to upgrade the roughly 40 GW capacities to the next-generation technology. We call it Pioneer 3. We don’t have any additional investment plan in 2026. By 2026, the payment is the outstanding payable to the suppliers.
Rajiv Chaudhri, Analyst, Samsara Capital: I see. Thank you. Okay. The other question is on market share and size of market. Can you give us an idea what you think the market size was in 2025? Obviously, that will allow me to calculate your market share. Related to that is a question of your guidance and the market share that you expect to get in 2026.
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: Last year, we delivered roughly 85 GW. The top one in the industries. I think roughly we get 13%, maybe 13%-14% market share. We expect 2026, the global demand a little bit flat or maybe down a little bit, small percentage, given last year China reached to the very high peak, over 300 GW. Overseas market continued to grow in 2026. It’s a kind of the short term, the total market size a little bit down in 2026 because of China’s specific situations. For the next year and long term, we are very optimistic. If you look at the conflict in Middle East, I think more and more countries, including China, have more determinations to push more renewable energy. The energy independence and securities will become more first priorities for a lot of governments.
For the 2026, we guided 75-85 GW. It’s flat with last year, maybe a little bit lower, reflecting the total market size in 2026. I’m talking about the 2026, the total markets could be a little bit lower compared to last year. Basically, I think the market share will be relatively stable. The key operational target will be significantly improve our financial performance and maintain our very healthy operational cash flows. We will more focus on the high-value customers and both from the utilities segment and the DG segment as well.
Rajiv Chaudhri, Analyst, Samsara Capital: I see. Would you expect in this scenario that the share of international will be even higher than last year in your sales?
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: I think so. Because we are trying to lower our exposure in China. Definitely, China, last year, take around 40% of our shipments in 2025 for Jinko. I expect 2026, China, the percentage will be lowered to 30%, maybe a little bit lower. We get more market share from overseas market, particularly the markets with more disciplined and the customer like to pay for the branding, the qualities and the high-efficiency products.
Rajiv Chaudhri, Analyst, Samsara Capital: Charlie, if some of the Tier 3 and the weaker companies are getting out of the market, shouldn’t we expect your market share to grow in 2026, even if the market overall is down? Are you just being very conservative here?
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: No. Unfortunately, it’s not a conservative estimation. We think this year it’s kind of the, how to say, transition year. Next year, we are looking forward a lot of good opportunities. We believe, this year, you’re right, a lot of tier two, tier three, even relatively bigger guys, will be facing, I think liquidation issues or maybe consolidation issues. What we want to do is we penetrate the market with customers who is willing to pay a reasonable price, and we are able to get reasonable profit varies.
Rajiv Chaudhri, Analyst, Samsara Capital: Charlie, final question. On the exchange rate, obviously, you experienced a negative margin pressure because the dollar weakened against the renminbi. Your products are priced in dollars globally. Would you consider shifting that into pricing globally in RMB so that in future, as the dollar continues to weaken against the RMB, that you are not punished for it? Because it seems to me that it makes sense to consider this as a strategic rethink.
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: Yes. We’re trying to diversify, minimize the risk of fluctuations of currencies. If you look at the price determinations in your sales orders, it really depends on the customers, how they view their exposures. Most of our customers, I think their PPA is still U.S. dollars, so it’s a kind of natural hit when they procure the modules from the module makers. Some customers are willing to pay, in RMB denominated, and we are encouraging the customers who is willing to switch to the RMB to a little bit lower the currency exposures. On top of that, I think the currency hedging, we are continuing to do that. It’s a little bit difficult, but we’re trying to minimize the impact. For the pricing impact, periodically we reassess the possible exchange rate and put into the pricing for the future sales order. Thank you.
Rajiv Chaudhri, Analyst, Samsara Capital: I see. Thank you very much.
Operator: Thank you. Your next question comes from Alan Lau from Jefferies. Please go ahead.
Alan Lau, Analyst, Jefferies: Hello, can you hear me?
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: Yes, please go ahead.
Alan Lau, Analyst, Jefferies: Yeah. Thanks, Charlie. Thanks for taking my question. First of all, I would like to understand the company’s view on its potential collaboration with the U.S. leader in its local plan, in both the space-based solar and also its huge local 100 GW deployment. Heard that Jinko was on the ground with some progress. I would like to know if the company would share updates on that front. Another thing is, recently, since this market discussion on China may be prohibiting or stopping the export of solar equipment as well. Would this impact that collaboration? Thank you.
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: Thanks for the questions. For the second question, I didn’t have any information to comment. I know there’s some kind of message, even popular news from overseas media channels. I think you are talking about the U.S., Tesla, SpaceX, and it’s public information, Elon Musk is making very bullish, and the plan to build, and 100 GW by Tesla and 100 GW by the SpaceX. I think it’s why they have such a bullish plan. I think particularly from Tesla perspective, I think the public news show, okay, because the AI, there’s a lot of demand for electricity, renewable energies, and the U.S. is lack of the electricity, and the renewable energy will be the final solutions. I think Tesla, I think they have visited a lot of equipment suppliers and manufacturers, including JinkoSolar.
They have decided their technology could be TOPCon. We don’t have any further information to disclose. Again, Jinko is a pioneer and the innovators for the TOPCon technology. We have, I think, the most powerful capabilities to build integrated capacities, digitalizations, and have a very strong, powerful patents as well in the world. We are quite open to explore the cooperation opportunities with partners in different countries. That is the information I think I can share. In summary, I think the proper information show, okay, the Tesla SpaceX has a plan to build capacities. They are doing a lot of the work, including visiting Chinese manufacturers. From Jinko perspective, we didn’t have any further information to discuss. We are open for the business opportunities, if any.
Alan Lau, Analyst, Jefferies: Thank you.
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: Thank you.
Alan Lau, Analyst, Jefferies: Good luck for the potential chance or collaboration. To follow up, what’s your view on the popcorn patent lawsuit raised by First Solar? Are you seeing this is impacting your shipment in the U.S. or it’s not really affecting shipment for now?
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: Yeah. We don’t expect any disruptions or impact in our business and ongoing business in the United States. The First Solar litigations, we have been actively engaged experienced lawyers to fight. We don’t believe we infringe the relevant patents of First Solar. We did research for the production process. We don’t believe it is relevant. On top of that, we have a very solid experience couple of years ago to deal with Section 337 with Hanwha Q CELLS, and we won in the final. Again, we do a lot of preparation work, but we are confident and there is no impact for our operations in the United States.
Alan Lau, Analyst, Jefferies: Understood. Clear. Switching gears to the FEOC-related issue. Would like to know, I think probably for this year, there are sufficient projects already safe-harbored for this year. Wonder if you may share with investors your plan on meeting the FEOC requirements, going forward. Like, is there any progress in sourcing partners, et cetera?
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: Yeah. I think there’s a lot of the safe harbor, the downstream projects and the project will get through the constructions and the connections in the next 2 or 3 years. For the Brownfield compliance for the manufacturing in our Jacksonville facilities. We are in the final stage and recent negotiation with potential investors. If there is any significant breakthrough, we will make the announcement. We expect it could be closed in the next couple of months.
Alan Lau, Analyst, Jefferies: Understood. That’s very good news. I would like to switch gear to ESS. I think the chairman has guided on the shipment that in 2026, the shipment may be doubled. I wonder if you might share in which region are those shipment is going to be, and is there any AI data center related deals that is being negotiated or in discussion?
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: For the storage ESS business, AI data center definitely is a very hot topic, and we are actively in early stage and discussing with few potential customers. We plan, and I think hopefully, we are able to finalize some deal by the end of this year. For the storage segment by regions, China really take our small percentage, and it’s roughly 10%-15%. Our focus will be Europe, Latin America, and some projects from Middle East, and the Asia Pacific regions. That’s the breakdowns. In the U.S., last year, we shipped around 600 MWh. We are building, solidify our teams and hopefully we can make significant breakthrough in the U.S. market in 2026 as well.
Alan Lau, Analyst, Jefferies: Understood. Is there an expected gross margin, target on the ESS side of the business?
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: Yeah. We estimate to be 10%-15%. We did have a very good backlog last year, but the industry is facing the increase of price of lithium. We are trying to manage and minimize the exposures, but we estimate could be in a range of 10%-15%.
Alan Lau, Analyst, Jefferies: Understood. That’s very clear. I think my last question is on the shareholders’ return. I wonder if the company, what’s the pace of the buyback of the company? Like, is there any further shareholders’ return program for this year?
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: I think we will continue to make the investment return in the combination of the share purchase and the dividend. It could be the magnitude that we have not determined, but we’ll definitely do that.
Alan Lau, Analyst, Jefferies: I think in the past it was around, like, the plan was around CNY 200 million per year, but not sure if this is still the plan given the situation in the industry for now.
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: This is U.S. holding companies, and I think now the U.S. company has roughly $200 million in cash. We try to make some investment on this through including solar, robotics and some relevant industries. We need to allocate between equity investment and shareholder returns. We have sufficient, I think, the cash and to return the investment and to return to the investors maybe in a range of $50 million-$100 million a year.
Alan Lau, Analyst, Jefferies: Understood. That’s very clear. Thanks a lot for taking my question, Charlie.
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: Thank you.
Alan Lau, Analyst, Jefferies: Thank you.
Operator: Thank you. Your next question is a follow-up from Philip Shen of Roth Capital Partners. Please go ahead.
Philip Shen, Analyst, Roth Capital Partners: Hey, thanks for letting me jump back in here. I wanted to ask about the perovskite outlook. You guys have highlighted your efficiencies there, in the laboratory, and I was interested in getting your perspective on when perovskite could be commercialized, in your capacity footprint. Are we looking at maybe 2-5 years, or do you think it’s beyond 5 years? Thanks.
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: We did make some through the laboratory for the perovskite technology, and it’s reaching roughly 34%-35%. Talking to commercial mass production, we think it still have a lot of R&D work to do. It could be in the next maybe 3-5 years. Definitely is not in the near term.
Philip Shen, Analyst, Roth Capital Partners: Yep. Okay. Thanks, Charlie. In terms of your shipments to the U.S. market, I think you had in your deck 5% of your shipments went to the U.S. What is your expectation for shipments to the U.S. market in 2026? Thanks.
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: It’s 5%-10%. It’s a little bit challenged because of the shortage of the solar cell supplies. We are trying to reach to at least the middle point.
Philip Shen, Analyst, Roth Capital Partners: The midpoint of the 5%-10%, is that what you mean?
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: Yeah. Yes. Midpoint, yes.
Philip Shen, Analyst, Roth Capital Partners: Got it. Okay. Can you talk about the source of your non-CIGS cells? Are you sourcing them from the Middle East or where are they coming from? Thanks.
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: Yeah. In general, there are several different players in manufacturing, I think, in Africa, in different continents. I think we are able to secure some of the productions from the suppliers.
Philip Shen, Analyst, Roth Capital Partners: Okay, thanks. In terms of the war, I just wanted to see if there are any impacts to the business at all. You have your large manufacturing facility you’re building in Saudi Arabia, so want to see if-
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: Okay.
Philip Shen, Analyst, Roth Capital Partners: Do you have any thoughts on that. Thanks.
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: Thank you. Thanks for your question. On the Saudi joint ventures, we didn’t make any, I think, breakthrough, and it’s still in early preparations and waiting for the implementation of the local policies. We didn’t make any significant investment in the joint ventures. The Middle East conflict, it has several impacts, but I don’t believe it’s long-term. Firstly, it will have impact on our shipment to the Middle East. We take a sizable market share in the Middle East. Given the logistical challenge, we need to replan, work with our customers, reschedule the shipment plans. There is a significant push for the oil price. It’s kind of the fundamental cost for a lot of materials, particularly the chemicals as well as the logistical cost.
There is some kind of push for the cost from shipment costs, EVA, etc., but we are trying to manage it in our reasonable level. I don’t believe-
Philip Shen, Analyst, Roth Capital Partners: Okay
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: That’s a long term. Short term, there’s some kind of impact that we can get it through.
Philip Shen, Analyst, Roth Capital Partners: Right. Charlie, what’s the plan for shipments to the Middle East before the war in 2020? What percentage of your 2026 shipments were you thinking?
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: You mean by year? A year, huh?
Philip Shen, Analyst, Roth Capital Partners: Yeah. For the full year, like pre-war, were you thinking like 20%?
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: Yes. Thank you. Yes. I think it’s roughly 20%.
Philip Shen, Analyst, Roth Capital Partners: Okay.
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: It’s not impacting all the countries. It impacts some countries in the short term.
Philip Shen, Analyst, Roth Capital Partners: Right. In the short term, maybe it’s half of that is maybe challenged by the war?
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: Yes.
Philip Shen, Analyst, Roth Capital Partners: Okay. Thank you very much. I’ll pass it on.
Charlie Cao, CEO of JinkoSolar Co., Ltd., JinkoSolar Holding Co., Ltd.: Thank you.
Philip Shen, Analyst, Roth Capital Partners: Okay.
Operator: There are no further questions at this time. That does conclude our conference for today. Thank you for participating. You may now disconnect.