JinkoSolar (JKS) Q2 2026 Earnings Call Transcript

Yahoo Finance ·

Wednesday, Aug. 26, 2026 at 8:30 a.m. ET Investor Relations Manager - Stella Wang CEO of JinkoSolar Company Limited - Charlie Cao Total Revenue -- $1.82 billion, down 31.3% year over year and up 0.9% sequentially, primarily reflecting fluctuations in solar module shipment volumes. Module Shipments -- 15,961 MW, representing a 16.7% sequential increase and a 34.4% decrease compared to the second quarter of 2025. Gross Margin -- 4.2%, compared to 8.3% in the first quarter of 2026 and 2.9% in the second quarter of 2025, with sequential pressure driven by lower average selling prices. Net Loss -- RMB 697.3 million ($102.8 million), widening from a net loss of RMB 463.5 million in the prior quarter. Full-Year Module Shipment Guidance -- 60 gigawatts to 70 gigawatts, adjusted downward from previous targets to prioritize profitability and cash flow. Third-Quarter Module Shipment Guidance -- 15 gigawatts to 17 gigawatts. Year-End Integrated Capacity -- 100 gigawatts, including 14 gigawatts of production capacity from overseas facilities. TOPCon 3.0 Production Capacity -- 40 gigawatts expected by the end of 2026, targeting Level 1 energy efficiency under new national standards. Tiger Neo 5.0 Performance -- 25.91% mass-produced efficiency and power output exceeding 700 watts, achieved through optimized core technologies. Overseas Shipment Mix -- over 70% of total volume during the first half of 2026, primarily across Europe, Asia Pacific, and emerging markets. Energy Storage System (ESS) Shipments -- 3.1 gigawatt hours in the first half of 2026, representing a significant year-over-year increase. ESS Revenue Recognition -- 1.5 gigawatt hours recognized in the first half of 2026, including more than 1 gigawatt hour during the second quarter. Strategic Investment Portfolio -- RMB 1.99 billion fair value as of June 30, 2026, encompassing more than 40 companies in solar, energy storage, and AI sectors. Portfolio Performance -- RMB 490 million in gains generated during the first half of 2026, including RMB 110 million in realized gains and RMB 380 million in unrealized fair value appreciation. LAPLACE Disposal -- over RMB 300 million in cash proceeds received from divesting equity interest in LAPLACE Renewable Energy Technology Company Limited, yielding a cumulative realized gain exceeding RMB 250 million. Operating Loss Margin -- 11.6%, compared with 4.8% in the first quarter of 2026 and 7.7% in the second quarter of 2025. Total Operating Expenses -- $287.3 million, up 21.3% sequentially and 2.3% year over year, driven largely by higher expected credit losses. Cash and Equivalents -- $2.5 billion at quarter-end, down from $3.3 billion at the end of the first quarter of 2026. Total Debt -- $6.6 billion, a decrease from $6.8 billion at the end of the first quarter. Accounts Receivable Turnover -- 113 days, an improvement from 128 days in the first quarter of 2026. Inventory Turnover -- 125 days, compared with 142 days in the prior quarter. Asset to Liability Ratio -- 1.5 percentage points lower than the level recorded at the beginning of the year. U.S. Subsidiary Disposal -- RMB 1.31 billion in cash consideration received for the 75.1% equity interest in Jinko Solar (U.S.) Industries Inc., resulting in a pre-tax gain of RMB 236.6 million. Cash Dividend -- $1.50 per ADS declared by the board of directors in June 2026. Need a quote from a Motley Fool analyst? Email [email protected] CEO Du stated, "Supply and demand imbalances across the PV industry remain dynamic," noting that these pressures are compounded by shifts in domestic and overseas policies that keep industry profitability under pressure. Du reported that the cost of ramping up production of high-efficiency products remained elevated during the second quarter, negatively impacting the company's gross margin and bottom line. CMO Miao warned that domestic installation demand has slowed due to the implementation of market-based pricing mechanisms for renewable energy and the current pace of project investment. Management reported a strategic shift following the appointment of Dimi Du as CEO, prioritizing earnings quality and disciplined capital allocation over shipment scale. The company reported a significant year-over-year revenue decline and expanded operating losses, reflecting global supply chain imbalances and the impact of delivering lower-value orders. JinkoSolar is adjusting its domestic operations to align with new national energy efficiency standards taking effect in January 2027 and is expanding its strategic investment platform into high-growth sectors such as artificial intelligence and robotics. Management confirmed plans to maintain 100 gigawatts of integrated production capacity while lowering full-year module shipment guidance to better balance volume with profitability and cash flow requirements. The company is diversifying its revenue streams through a strategic investment arm; CEO Du stated, "we have selectively expanded our investment scope to the AI ecosystem and other frontier technologies." JinkoSolar is targeting high-value markets with premium product pricing; CMO Miao noted, "Our Tiger Neo 3.0 series continue to command a premium of approximately $0.10 per watt over conventional products." Management is utilizing joint venture structures to expand local manufacturing; CEO Cao stated that future local manufacturing outside of China will be pursued through joint ventures to minimize capital expenditure. New efficiency standards in China are expected to accelerate the phaseout of inefficient capacity; CEO Du noted that products failing to meet minimum Level 3 thresholds "will not be permitted for production or sales" starting in 2027. The energy storage business is transitioning toward a solution-focused model; management reported shipments reached 3.1 gigawatt hours in the first half of 2026 with a focus on improving revenue recognition efficiency for large-scale projects. TOPCon : Tunnel Oxide Passivated Contact, a high-efficiency solar cell technology that reduces recombination losses. ESS : Energy Storage System, technology used to store solar energy for use during periods of low generation or high demand. Tiger Neo : JinkoSolar's flagship brand of high-efficiency N-type solar modules. AIDC : Artificial Intelligence Data Center, a specialized facility designed to support high-performance computing requirements. GWh : Gigawatt hour, a unit of energy representing one billion watt hours. N-type : A solar cell architecture that uses phosphorus-doped silicon, typically offering higher efficiency and better performance under high temperatures than traditional P-type cells. PCS/EMS : Power Conversion System and Energy Management System, critical components for controlling and optimizing energy storage applications. Operator: Hello, ladies and gentlemen, and thank you for standing by for JinkoSolar Holding Company Limited Second Quarter 2026 Earnings Conference Call. [Operator Instructions] As a reminder, today's conference call is being recorded. I would now like to turn the meeting over to your host for today's call, Ms. Stella Wang, JinkoSolar's Investor Relations Manager. Please proceed, Stella. Stella Wang: Thank you, operator. Hello, everyone, and thank you for joining us today for JinkoSolar's Second Quarter 2026 Earnings Conference Call. The company's results were released earlier today and available on the company's IR website at ir.jinkosolar.com as well as on Newswire 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. Dimi Du, CEO of JinkoSolar Holding Company Limited; Mr. Gener Miao, CMO of JinkoSolar Company Limited; Mr. Pan Li, CFO of JinkoSolar Holding Company Limited; and Mr. Charlie Cao, CEO of JinkoSolar Company Limited. Mr. Du will discuss JinkoSolar's business operations and the company highlights, followed by Mr. Miao, who will provide an update on sales and marketing; and then Mr. Pan Li, who will go through the financials. Management will be available to answer questions during the Q&A session. 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 turn the call over to Mr. Dimi Du, CEO of JinkoSolar. Please go ahead, Dimi. Wei Du: Hello, everyone. This is Dimi Du, and thank you for joining JinkoSolar's Second Quarter 2026 Earnings Call. It is an honor to take the role of CEO. I appreciate the trust the Board of Directors and management team have placed in me. [ Gaining ] this milestone of our 20th anniversary as we embark on the next stage of development. I look forward to working closely together to further enhance our operating performance and strategic execution to drive sustainable high-quality growth. I will begin by reviewing our operational performance in the second quarter and then outline our key priorities going forward. In the second quarter, module shipments increased sequentially to approximately 16 gigawatts. Supply and demand imbalances across the PV industry remain dynamic. These pressures were further compounded by shifts in domestic and overseas policies with prices across the supply chain and industry profitability remaining under pressure. At the cost of ramping up, our high-efficiency products remained evaluated during the quarter, together with the impact of delivering certain low-value orders, gross margin decreased sequentially during the quarter, while our net loss expanded. Facing this operating pressure, we optimized our order book and geographic mix, rationally manage utilization rates and continue to expand the proportion of high-efficiency products within shipments while introducing technologies that lower costs. These measures are driving a gradual recovery in profitability. The underlying pattern of TV industry competition is gradually shifting from capacity and shipment scale to effective supply, product value and earnings quality. The mandatory new national standard on energy efficiency for modules and inverters released in July will take effect in January 2027. The new standard set level 3 energy efficiency as a minimum threshold for market access. Products that fail to meet the minimum thresholds will not be permitted for production or sales, placing high-efficiency products in a stronger position for large-scale renewable energy project tenders. Meanwhile, the implementation of market-based pricing for renewable power is pushing customers to increasingly focusing on energy yield, reliability and the lifetime value of modules. These changes are beneficiary to industry leaders with advanced manufacturing capacity, technological expertise, global delivery and long-term service capabilities, which will accelerate the phaseout of inefficient production capacity. By the end of 2026, we expect to have more than 40 gigawatts of TOPCon 3.0 production capacity. Based on the new standard thresholds, these products are expected to meet Level 1 energy efficiency requirements and strengthen our annualized production capacity for high-efficiency products to lead the industry. We continue to advance our product portfolio and build a solid base for next-generation technologies based on our TOPCon technology road map. In June, we unveiled our newest next-generation TOPCon Tiger Neo 5.0 modules. By optimizing multiple core technologies, the TOPCon Tiger Neo 5.0 achieved mass produced efficiency of 25.91% and power output of over 700 watts, setting a new benchmark for TOPCon product performance once again. ESS shipments in the first half of the year were 3.1 gigawatt hour, increased significantly year-over-year. Benefiting from our presence in high-value market, gross margin improved year-over-year in the first half of 2026. Due to uncertainties in timing of project delivery and other factors, recognized revenue remains in ramp-up stage. Approximately 1.5 gigawatt hour were recognized in revenue in first half, including more than 1 gigawatt hour in the second quarter as project deliveries increase alongside ongoing enhancement of our in-house PCS, EMS and other capabilities, we will continue to boost efficiency of both revenue recognition and profit realization, driving high-quality growth for our ESS business. Now I will move on to our guidance for the third quarter and full year of 2026. We expect our annual integrated production capacity to reach approximately 100 gigawatts by year-end 2026, including approximately 14 gigawatts from overseas facilities. Considering demand dynamics in certain markets, we will place greater emphasis on balancing shipment volume, profitability, cash flow and order quality going forward and adjusting guidance for full year 2026 module shipments to between 60 gigawatts and 70 gigawatts and high-efficiency products accounting for over 60%. We expect module shipments to between 15 gigawatts and 17 gigawatts in first quarter of 2026. For full year 2026, we expect our energy storage system shipments to more than double year-over-year. As we continue to strengthen the competitiveness of our core solar and energy storage businesses, we are also building an investment platform through disciplined capital allocation and professional investment management that will act as a complementary driver for long-term value creation. Over the past several years, leveraging our deep industry expertise and long-term perspective on technological trends, we have made disciplined and selective investments directly or through fund platforms, focusing on strategic synergies, technological innovation and long-term value creation. Our earlier investment primarily focused on solar and energy storage value chain. In recent years, as AI drives demand for computing power and electricity demand, we have selectively expanded our investment scope to the AI ecosystem and other frontier technologies. To date, we have invested in more than 40 companies in total. As of June 30, 2026, we have invested an aggregate of approximately RMB 1.86 billion in cash. The original cash cost of the investments remaining in our portfolio is approximately RMB 1.5 billion with a fair value of approximately RMB 1.99 billion as of the same date. Our investment portfolio has generated cumulative value appreciation of approximately RMB 880 million, comprising of approximately RMB 410 million in realized gain from exit and approximately RMB 470 million in unrealized fair value from remaining investments in the portfolio. During the first half of 2026, our portfolio generated gains of approximately RMB 490 million, comprising approximately RMB 110 million in realized gains and approximately RMB 380 million in unrealized fair value gains. In the first half of 2026, we divested a substantial portion of our equity interest in LAPLACE Renewable Energy Technology Company Limited, receiving over RMB 300 million in cash proceeds. Since our initial investment in LAPLACE, the cumulative realized gain on this disposal exceeded RMB 250 million. This gain was recognized over multiple periods through fair value adjustments following its IPO in late 2024 with over RMB 100 million recorded in change in fair value of long-term investments upon settlement in the first half of 2026. In addition, Hangzhou Gold Electronic Equipment Company Limited successfully completed its listing on ChiNext market of Shenzhen Stock Exchange during the second quarter, creating an additional pathway for future value realization. Looking ahead, we will continue to maintain a disciplined approach to capital allocation, supporting the long-term development of our core solar and energy storage business will remain our top priority. At the same time, we will continue to evaluate our existing strategic investments based on the operating performance strategic synergies and the long-term value creation potential of each portfolio company while remaining disciplined and selective in pursuing new opportunities. Through strengthening our core businesses, realizing portfolio value and improving capital utilization efficiency, we remain committed to creating sustainable long-term value for our shareholders. This concludes my remarks. I will now turn the call over to Gener. Gener Miao: Thanks, Dimi. Total shipments were 36.9 gigawatts in the first half with total market shipment accounting for over 90%, leveraging sales network covering nearly 200 countries and regions and 35 service centers globally. We continue to optimize our geographic mix and the customer structure overseas. In the first half shipment to the overseas markets accounted for over 70%, mainly across Asia Pacific, Europe and emerging markets. In the second quarter, the proportion of high-efficiency product shipments improved sequentially. Our Tiger Neo 3.0 series continue to command a premium of approximately USD 0.1 per watt over conventional products. We also began to ship a small number of scenario-based product in the second quarter and gradually plan to increase deliveries in the second half. Those products already command a premium of approximately USD 0.5 to USD 0.1 per watt over conventional products. Following the launch of AIDC and other scenario-based module products in the first quarter, we recently released the Sunny 365 smart solar storage system. This comprehensive series of integrated PV storage solutions cover several scenarios such as retail, supermarkets, AIDC and manufacturing sectors. Especially the AIDC solution is built around our Tiger Neo 3.0 module platform technology and the SunTera energy storage system, capable of meeting the demand from data center for power supply reliability, energy economics and sustainable low-carbon development through the coordinated control of energy storage system, PCS, EMS and smart operations and maintenance. We recently received the highest AAA bankability rating in the Q2 2026 bankability rating report for module manufacturers released by PV Tech. Since first participating in the evaluation in 2014, we have maintained a grade rating for 12 consecutive years. Also, we were recognized as a Tier 1 energy storage provider by BNEF for the 10th consecutive quarter. These ratings reinforce our bankability project implementation capabilities and long-term delivery capabilities for the international market. Impacted by the market-based pricing mechanism for renewable energy and the pace of project investment, domestic installation demand has slowed. Yet, we observed the positive signs of shifting structural demand with national level large-scale renewable energy-based projects lead by the central and state-owned enterprises, maintaining a steady pace of progress. The share of tenders for high-efficiency modules has increased significantly in the centralized procurement and the criteria has shifted from simply pursuing lowest bidding price to greater emphasize on module efficiency, life cycle power generation performance, reliability and long-term delivery capability. High-efficiency modules have already commanded a reasonable premium in tenders.

DYAX Investor Sentiment

Bullish (Long) 51% · Bearish (Short) 49%

587 participants

Related News

원문 보기 — Yahoo Finance