Jinko Solar Co., Ltd., the majority‑owned operating subsidiary of JinkoSolar Holding Co., Ltd., projected a net loss attributable to shareholders of between RMB 5,900 million and RMB 6,900 million for the full year ended December 31 2025. The estimates also indicate a net loss excluding extraordinary gains and losses of between RMB 6,700 million and RMB 7,800 million, a sharp reversal from the subsidiary’s RMB 7.9 million net income in 2024 and a dramatic decline from the RMB 1.9 billion profit reported in 2023.
The loss figures reflect a steep contraction in gross margin, which fell to 10.9% in 2024 from 16.0% in 2023 and to 7.3% in Q3 2025 from 15.7% in Q3 2024. The margin squeeze is driven by an oversupplied solar‑module market, intense price competition, and rising input costs—particularly the cost of silver paste, which has increased sharply and erodes profitability even as module shipments grew 18.3% to 92.9 GW in 2024.
Management explained that the combination of a global oversupply and aggressive pricing by competitors has forced average selling prices lower, while the cost of key raw materials has risen. Chairman and CEO Xiande Li noted that “imbalances in supply and demand led to a decline in module prices, resulting in a gross margin of 10.9% and net income of RMB 7.9 million.” He added that policy measures to limit production and curb low‑price competition are expected to help the market rebound after the Spring Festival.
Investors reacted negatively, with JinkoSolar’s stock falling 12.44% on the day of the announcement. The decline was driven by the projected multi‑billion‑RMB loss, the divergence between PRC GAAP and U.S. GAAP reporting, and the broader industry trend of margin compression and oversupply. Analysts highlighted the loss as a warning sign of the company’s deteriorating profitability and the challenges of maintaining market share in a highly competitive environment.
Despite the short‑term pain, the company’s management remains optimistic about its energy‑storage system (ESS) business, which is expected to double shipments in 2026 and contribute 10‑15% of overall revenue. The subsidiary’s guidance signals a focus on cost discipline and strategic investments in high‑margin segments, suggesting that while the 2025 outlook is bleak, the company is positioning itself for a rebound as the module market stabilizes and ESS demand grows.
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