JinkoSolar's Cautious 2025 Expansion Plans

JinkoSolar, one of the world's leading solar module manufacturers, has announced its financial results for the fourth quarter and full year of 2024, revealing a significant net loss of RMB473.7 million (US$64.9 million) for the quarter. This loss, coupled with a challenging market environment, has prompted the company to adopt a more cautious approach to capacity expansion in 2025. The financial results highlight the impact of market headwinds, including an imbalance between supply and demand, which has led to a decline in module prices and intensified competition within the industry.

The company's gross margin for the fourth quarter was a mere 3.6%, down from 15.7% in the previous quarter and 12.5% in the same period last year. This decline in profitability is a direct result of the ongoing imbalance between supply and demand in the solar industry, which has led to a significant drop in module prices. The company's total revenues for the full year 2024 were RMB92.26 billion (US$12.64 billion), down 22.3% year-over-year. This decline in revenue, combined with the impact of short-term factors such as the elimination of obsolete production capacity, has significantly affected the company's profitability.



The company's Chairman and CEO, Mr. Xiande Li, acknowledged the challenging year of 2024, highlighting the need for resilient operating results and a focus on leading positions in N-type TOPCon technology and patent portfolio. Despite the financial setbacks, JinkoSolar remains committed to its global sales and manufacturing networks, which are crucial for maintaining its competitive edge. The company's strategic decisions in 2025 will likely prioritize cost efficiency and technological innovation to mitigate the impact of market fluctuations and ensure sustainable growth.

The market headwinds facing JinkoSolar are not limited to the decline in module prices. The global economic situation and trade policies in large markets have made it difficult for Chinese solar companies, including JinkoSolar, to gain profits from the global market. According to the China Photovoltaic Industry Association's 2024 Review meeting, China's PV export volume totaled around $28.14 billion, a decline of 34.5% year on year. This decline in export volume, despite the increase in the export volume of cells and modules, highlights the challenges faced by the industry.

Furthermore, the industry has fallen into disordered competition, with 39 out of 121 listed photovoltaic companies reporting net profit loss in 2024. Industry leaders, including JinkoSolar, have suffered the worst loss. This intense competition, coupled with the rapid expansion of the photovoltaic industry chain and the resulting overcapacity, has triggered price fluctuations and intensified market competition.



These market headwinds could impact JinkoSolar's future growth and profitability by reducing its revenue and profit margins, making it more challenging for the company to invest in research and development, and expand its production capacity. However, JinkoSolar's leading position in N-type TOPCon technology and patent portfolio, competitive products, as well as global sales and manufacturing networks, could help the company navigate these challenges and maintain its market leadership.

In conclusion, JinkoSolar's cautious approach to capacity expansion in 2025 is a direct response to the challenging market environment and the significant loss reported in the fourth quarter of 2024. The company's focus on cost efficiency and technological innovation, coupled with its leading position in the solar industry, will be crucial in navigating the market headwinds and ensuring sustainable growth in the future.