JinkoSolar's Q4 2024: Navigating Contradictions in U.S. Strategy, Pricing, and Margin Outlook

These are the key contradictions discussed in JinkoSolar's latest 2024Q4 earnings call, specifically including: U.S. market strategy and tariffs, pricing strategy and market conditions, cost improvements and margin outlook, and margin expectations:



Module Shipments and Market Position:
- JinkoSolar's annual module shipments increased by 18.3% year-over-year to about 93 gigawatts, ranking first in the industry.
- Despite the growth in module shipments, profitability dropped significantly due to the imbalance between supply and demand, leading to a decline in module prices.

Financial Performance and Profitability:
- JinkoSolar's gross margin was 10.9% in 2024, compared to 16% in 2023, with a net income of $7.9 million, down 98% year-over-year.
- The decline in profitability was primarily due to the elimination of obsolete production capacity and the impact of lower module prices.

Gross Margin and Operating Expenses:
- Gross margin for the fourth quarter was 3.6%, down from 15.7% in the third quarter, with total operating expenses decreasing by about 27% sequentially.
- The decrease in gross margin was driven by a decline in module ASP and profits, while the reduction in operating expenses was due to improved cost control.

Technological Advancements:
- JinkoSolar's mass-produced N-type cell efficiency reached nearly 26.5%, with the highest efficiency on production lines exceeding 26.7%.
- These advancements were achieved through continuous R&D investments and the mass production of innovative products like the Tiger Neo series.