20-F: JinkoSolar Reports Significant Revenue Drop and Net Loss in 2025

JinkoSolar Holding Co., Ltd. announced its 2025 annual results, revealing a substantial decrease in revenue and a net loss, primarily attributed to market oversupply, price competition, and shifting trade dynamics.

Summary

• JinkoSolar Holding Co., Ltd. reported a significant decline in revenue for the fiscal year ended December 31, 2025, with total revenues decreasing by 29.0% to RMB65.50 billion (US$9.37 billion) from RMB92.26 billion in 2024.
• The company experienced a net loss attributable to ordinary shareholders of RMB4.45 billion (US$635.6 million) in 2025, a sharp contrast to a net income of RMB54.5 million in 2024.
• This downturn was primarily driven by a decrease in the average selling price of solar modules, which led to a significant drop in gross profit and a negative operating margin of 13.6% in 2025.
• The company's cost of revenues also decreased by 22.0% to RMB64.09 billion, largely due to lower raw material costs.
• Operating expenses were reduced by 23.0% to RMB10.32 billion, mainly due to lower shipping costs and employee compensation.
• Despite the challenging financial results, the company continued to invest in R&D, with R&D expenses remaining stable at RMB896.9 million.
• JinkoSolar maintained a strong global manufacturing presence, with annual production capacities of 120.0 GW for mono wafers, 95.0 GW for solar cells, and 130.0 GW for solar modules as of December 31, 2025.
• The company's N-type Tiger Neo series continued to be its primary product, accounting for nearly 99% of total module shipments in 2025.
• Cash and cash equivalents, including restricted cash, decreased to RMB22.94 billion (US$3.28 billion) by the end of 2025, with net cash used in operating activities amounting to RMB1.08 billion (US$154.7 million) for the year.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this filing as negative due to the significant revenue decline, substantial net loss, and reduced gross margins, indicating a challenging operating environment and financial performance in 2025.

Positives

• The company maintained its global manufacturing capacity, with annual production capacities of 120.0 GW for mono wafers, 95.0 GW for solar cells, and 130.0 GW for solar modules as of December 31, 2025.
• N-type Tiger Neo series modules, representing nearly 99% of total module shipments in 2025, continue to be the company's primary product, indicating strong market adoption of their advanced technology.
• R&D expenses remained stable at RMB896.9 million, demonstrating a continued commitment to technological advancement.
• The company has a diversified customer base, with no single customer accounting for more than 3.0% of total revenue in 2025.
• The company has a strong global sales network with sales teams in numerous countries and over 20 overseas subsidiaries.
• JinkoSolar received several quality-related honors and certifications, including ISO 9001, ISO 14001, ISO 45001, and ISO 50001 certifications for its manufacturing facilities.
• The company's energy storage business saw significant growth in 2025, with shipments increasing compared to 2024.

Negatives

• Revenue decreased by 29.0% to RMB65.50 billion (US$9.37 billion) in 2025.
• The company reported a net loss attributable to ordinary shareholders of RMB4.45 billion (US$635.6 million) in 2025.
• Gross profit decreased by 86.0% to RMB1.41 billion (US$201.7 million) in 2025.
• Gross margin declined significantly from 10.9% in 2024 to 2.2% in 2025.
• Loss from operations increased to RMB8.91 billion (US$1.27 billion) in 2025.
• Operating loss margin worsened to 13.6% in 2025.
• Net cash used in operating activities was RMB1.08 billion (US$154.7 million) in 2025.
• The company recorded an impairment of long-lived assets of RMB1.66 billion (US$237.7 million) in 2025.
• The company's net income attributable to ordinary shareholders decreased from RMB54.5 million in 2024 to a net loss of RMB4.45 billion in 2025.

Risks

• Continued supply-demand imbalances and intensified price competition in the photovoltaic value chain may further pressure profitability.
• Shifting trade environments in overseas markets, including tariffs and trade investigations, could adversely affect business operations and market access.
• Volatility in the prices of silicon raw materials and other key commodities can impact production costs and margins.
• The company faces risks associated with its global manufacturing facilities, including compliance with diverse local laws and regulations.
• Potential for future U.S. government actions under the Holding Foreign Companies Accountable Act (HFCAA) could lead to delisting from U.S. exchanges.
• Changes in PRC government policies and regulations, including those related to data security and anti-monopoly enforcement, could impact business operations and access to capital.
• The company's substantial indebtedness could adversely affect its financial condition and ability to meet payment obligations.
• The company's reliance on dividends from its PRC subsidiaries for cash requirements could be impacted by PRC regulations.
• The company is subject to legal and administrative proceedings, including patent infringement investigations and arbitration claims, which could result in significant costs and liabilities.

Future Outlook

The company expects continued challenges from supply-demand imbalances and price competition in the solar industry. However, long-term demand fundamentals remain supported by global decarbonization commitments and ongoing technological advancements in solar products. JinkoSolar is focusing on technology-driven and value-oriented strategies, including product portfolio optimization, market presence strengthening, and expansion of its energy storage business.

Management Comments

• Our operating results for 2025 were affected by continued supply-demand imbalances and pricing pressure across the photovoltaic value chain, along with a shifting trade environment in certain overseas markets. Module prices remained at a relatively low level throughout the year.
• Despite the near-term fluctuations, long-term demand fundamentals remain supported by global decarbonization commitments and continued improvements in the cost competitiveness of solar products.
• We are committed to a localization strategy, advancing our global presence from global sales to global manufacturing and global investing.

Industry Context

StockSavvy.ai notes that JinkoSolar's 2025 performance reflects broader industry trends of intense price competition and overcapacity in the solar module market, impacting profitability for many manufacturers. The company's strategic focus on N-type technology and global expansion, including a joint venture in Saudi Arabia, positions it to navigate these challenges and capitalize on the growing demand for renewable energy.

Comparison to Industry Standards

• JinkoSolar's gross margin of 2.2% in 2025 is significantly lower than the industry average for integrated solar module manufacturers, reflecting the intense price competition.
• The company's net loss in 2025 contrasts with the profitability reported by some competitors who may have better cost structures or stronger market positions in specific segments.
• JinkoSolar's continued investment in R&D for N-type TOPCon and perovskite-silicon tandem cells aligns with industry efforts to improve module efficiency and reduce costs, aiming to stay competitive with leaders like Longi Green Energy Technology Co., Ltd. and Trina Solar Ltd.

Legal Proceedings

• Arbitration filed by a Singapore customer against Jinko Solar Import & Export Co., Ltd. (Jinko IE) regarding defective photovoltaic solar modules, settled in August 2024 for US$31,000,000.
• First Solar, Inc. requested a U.S. International Trade Commission (USITC) investigation into violations of Section 337 against Jinko and other manufacturers concerning TOPCon solar products. The USITC has instituted the case.

Related Party Transactions

• Sales of solar modules and other products/services to JinkoPower, Xinte Silicon, Sichuan Yongxiang, and Zhejiang New Materials.
• Management services provided by JinkoPower and Sichuan Yongxiang.
• Electricity fees charged by JinkoPower.
• Silicon procurement from Xinte Silicon, Sichuan Yongxiang, and Zhejiang New Materials.
• Disposal of equity interest in Sweihan to Photon Energy.
• Equipment procurement from JinkoPower.

Stakeholder Impact

• Shareholders may experience a decline in the value of their investment due to the net loss and reduced revenue.
• Creditors may face increased risk due to the company's substantial indebtedness and reduced profitability.
• Employees may be impacted by the company's strategic adjustments, including workforce optimization, although no specific impacts are detailed.
• Suppliers may face altered payment terms or reduced order volumes due to the company's financial performance and strategic shifts.

Next Steps

• Continue to focus on technology-driven and value-oriented strategies.
• Strengthen presence in end markets and expand the energy storage business.
• Drive product upgrades and performance iterations to enhance product competitiveness.
• Advance globalization strategy through local manufacturing facilities and partnerships.

Key Dates

Recommendation

The significant revenue decline, substantial net loss, and deteriorating gross margins in 2025, coupled with ongoing industry pressures and legal risks, suggest a negative outlook. While the company's technological advancements and global presence are noted, the current financial performance and market conditions warrant a cautious approach, leading to a sell recommendation.

Keywords

JinkoSolar, Form 20-F, Annual Report, Solar Modules, Photovoltaic Products, Revenue Decline, Net Loss, Gross Margin, Operating Loss, N-type TOPCon, Manufacturing Capacity, Financial Results, SEC Filing, Renewable Energy, Solar Industry