JinkoSolar Holding Co Ltd DR

Hello ladies and gentlemen and thank you for standing by for Jinko Solar Holding Company Limited's first quarter 2026 earnings conference call. At this time, all participants are in the listen only mode. After management's prepared remarks, there will be a question and answer session. 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, to Ms. Stella Wang, Jinko Solar's Investor Relations Please proceed, Stella.

Thank you, operator. Thank you, everyone, for joining us today for Dinko Solar's first quarter 2026 earnings conference call. The comments and results were released earlier today and available on the company's IR website at www.dinkosolar.com, as well as on new providers' services. We have also provided a supplemental presentation for today's earnings call, which can also be found on the IR website. On a call today from ZincoSolar and Mr. Li Xianze, chairman and CEO of ZincoSolar Holding Company Limited, Mr. Jinan Miao, CMO of ZincoSolar Company Limited, Mr. Pan Li, CFO of ZincoSolar Holding Company Limited, and Mr. Charlie Tao, CEO of ZincoSolar Company Limited. Mr. Li will discuss ZincoSolar's business operations and company highlights, followed by Mr. Miao, who will talk about the sales and marketing, and then Mr. Pan Li, who will go through the financials. They will all be available to answer your questions during the Q&A session that follows. Please note that today's discussion will contain forward-looking statements made under the proper provisions of the U.S. Private Security Solicitation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainty. As such, future results may be materially different from the views expressed today. Further information regarding this and other risks is included in ZincoSolar's public soundings with the Securities and Exchange Commission. ZincoSolar does not assume any obligation to update any forwarding statements, except as required under the applicable law. It's now my pleasure to introduce Mr. Li Zhen, the chairman and CEO of ZincoSolar Holding. Mr. Li will speak in Mandarin and I will translate his comments into English. Please go ahead, Mr. Li.

The total output of the first generation is 13.7 GW, which is above 80% of the overseas output for the first generation. Since the end of the first generation in 2026, we have become one of the leading companies in the industry with a total output of more than 400 GW. The total output of the non-Fu series is also 240 GW. The price of the first generation in the industry needs to be improved and the demand for overseas promotion has been increased by more than 4G.

In the first quarter, total model shipments reached 13.7 gigawatts, ranking first in the industry, with over 80% shifted to overseas markets. We closed the quarter as the world's first model manufacturer to surpass 400 gigawatts. in community deliveries and also became the industry leader with our typing yield series, contributing to approximately 240 gigawatts to that total. Module prices rebounded sequentially, driven by stronger supply and demand dynamics, especially from overseas. This improved our operating performance sequentially, with our growth margin increasing to 8.3% and our net loss narrowing.

We also see the continued growth of industrial and commercial residents and electricity customers in the solution of electricity costs. On April 17, the Domestic Transport Department has promulgated the competition of the electricity industry and has made further steps to strengthen the development of high-quality products. It helps to promote the gradual optimization of industry-competition relations and promote the return of competition. In the face of market change, we continue to optimize the arrangement of production and area layout, and maintain close communication and negotiation with customers. With the gradual recovery of industry competition and the gradual release of our high-power products, we believe that the price of components is expected to remain relatively stable. At the same time, we hope that the growth of global electricity demand and energy output will lead to a new trend in economicization and distribution. We are also actively promoting the layout of the distribution market, and further expanding the diversified system application scene. By implementing these layout, we also increase our deep technical base and brand advantage.

We will continue to improve our competitiveness in the global market. Recent geopolitical disruptions have impacted CAVE's logistics lines, adding temporary pressure on our shipping costs and delivery schedules. At the same time, these directions have increased the importance of energy security globally. We are seeing a growing momentum among industrial, commercial, residential, and utility customers to adopt a solar-flask storage solution. In addition, regulators in China outlined further policy guidance on April 17, strengthening regulations on competition across the solar industry to support its high-quality development. We believe these matters will help improve the climate demand dynamics and support a more rational competitive environment. In response to market dynamics, we continue to optimize our production pipeline and the geographic mix and remain in close communication and negotiations with our customers. With the industry competition gradually normalizing as we scale up our high-efficiency type of new series, We expect the module prices to remain relatively stable. We continue to grow our footprint in the distributed solar market and are further expanding into diverse niche application scenarios that align with running power demand globally and shift towards cleaner and more distributed energy systems. Combined with our deep technological expertise and brand strength, will allow us to continue enhancing our competitiveness in the global market.

According to the data, our three-generation product has a capacity of up to 655W to 660W. The production capacity of the three-generation product has a certain scale and will continue to increase. It is estimated that at the end of 2026, the production capacity of the three-generation product of more than 450W will exceed 40GW.

By the end of the first quarter, average power output for our third-generation Titanium series reached the 665W to 660W, and we continue to ramp up our capacity. We expect the production capacity for this high efficiency series This cover outputs about 650 workers to exceed 40 gigawatts by the end of this year. As capacity gradually ramps up and generates economies of scale, in the second half of this year, we expect the cost structure to continue to improve.

We expect the cost structure to continue to improve. and realize a certain advantage, which reflects the difference between us through continuous technical stage and product segmentation. At the same time, the growth of Ning Baotong Technology leads to continuous promotion, and leads to progress and scale priority industry.

In the first quarter, high-efficiency products above $640 would be increased substantially and accounted for nearly 25% of the total shipment. These products also come on a premium, reflecting the differentiated advantages built through our continued technical iteration and product upgrades. Separately, we continue to make solid progress in the mass production of over-coated copper technology, where our pace and skill are leading the industry.

儲能业务方面,一季的儲能出货量约1.42个GWh, 其中520MWh左右确认为收入, 相较去年同期有大幅增长, 其中欧美等海外高价的市场算比较高, 市场结果持续优化,毛利率环比提升, Due to a certain period of income loss in some projects, we still have a long way to go. In 2026, we will continue to optimize our energy production and supply chain layout, focus on high-end markets, and promote the improvement of business scale and energy efficiency. We expect the growth of the energy supply system in 2025 to be more than half of what it was before, and it will be an important driving force for the company's overall profitability.

In terms of our ESS business, first of all, our POD business reached approximately 1.42 gigawatt hours. There's around 520 megawatt hours recognized as revenue. A higher contribution from high-value overseas markets such as Europe and the United States supported a more optimized market mix. and 12 are sequential improvements in our growth margin. Because of the time lag in revenue recognition of some projects, profit contribution has yet to be fully realized. In 2026, we will continue to optimize our ESS capacity and supply chain footprint and focus on high value markets to drive improvements in both scale and profitability. We expect the year's estimates to be more than double year-over-year in 2026, enhancing our profitability profile and contribute meaningfully to our overall bottom line.

Before we move on to the topic, let me introduce the industry. At the end of 2026, our univariate production capacity will reach 100 GW. Among them, overseas univariate production capacity is 14 GW. In 2026, the total production capacity will be 75 GW to 85 GW. Before our turn is over, presenter, I would like to go over our guidance for the second quarter and the full year of 2026.

We expect annual integrated production capacity to reach approximately 100 gigawatts by the end of this year, including 14 gigawatts from overseas facilities. We expect the model shipment to be between 14 gigawatts and 16 gigawatts for the second quarter of 2026, and between 75 gigawatts and 85 gigawatts for the full year 2026, with high efficiency products accounting for over 60%. We will continue to enhance our technological leadership and product competitiveness, deepen our global footprint, accelerate the development of our integrated solar-plugged storage strategy, improve operating efficiency, and drive gradual improvements in profitability.

Thank you, Ms. Lee. Total module shipment was 13.7 gigawatts in the first quarter. We capitalized on opportunities arriving from demand shifts in overseas markets by leveraging our outstanding global sales network and product competitiveness. Non-China markets accounted for over 80% of our total shipments over the quarter, mainly from Europe, Asia Pacific, and emerging markets. Shipments to the United States accounted for about 4% for the full year. We expect overseas markets to remain our primary growth driver as domestic demand faces temporary pressure while overseas demand grows steadily. The proportion of high-efficient product shipment continues to rise sequentially. This included deliveries of a small amount of 3.0 products. High-efficient products command a premium of approximately $1 a day over conventional products. With capacity of Tiger Neo 3.0 series gradually racking up and being released, we expect high-efficient product shipment to account for over 60% of total shipment for the full year. To address an increasing scenario-based nature of PV demand, we launched a series of specialized products in the first quarter, including anti-glare, flare resistance, dust resistance, and AIDC modules. These products are designed to target premium and high specification application segments. With more demanding requirements so far, the products have been widespread market interest and positive customer feedback. This will further strengthen our premium positioning and market reach as we continue to build our years of accumulated technology expertise and advantage in product performance. Global computing power demand continues to grow. Data centers are becoming a major new category of power consumption. To address this shift, we launched a full scenario PV plus energy storage solution tailored for AIDC. which provides all-weather renewable energy security for power demands requiring high reliability and continuously expands the boundaries of PV applications. Recently, we have made significant progress in our strategic markets. For example, in the Middle East, we supplied our high-performance TechnoNeo modules to a world-leading Solar Plus Storage benchmark project that integrates energy and computer applications. This further validates our competitive advantages in large-scale project delivery and global service capabilities. With deep market insights and disciplined, efficient execution, we are confident we will continue to capture opportunities for market and industry shifts. By continuously enhancing our technology's products and brand strengths, We will continue to deliver high-performance, high-reliability solar plus ESS solutions while continuously growing our market competitive units.

Thank you, General. What leads to reports steadily improving financial results, driven by our high-performance products and expanding footprint in high-value markets, Gross profit increased by 17 times sequentially and a full-fold year-over-year, while gross margins expanded by 8 percentage points sequentially and 10.8 percentage points year-over-year. Operating loss margin improved both sequentially and year-over-year. As we head into 2026, we are focused on improving our operating performance, optimizing our asset and liability structure, and maintaining healthy operating cash flow to enhance our resilience against the risks. Looking at our first quarter results in more detail, total revenue was 1.78 billion, down 30% sequentially, and 11.5% year-over-year, driven primarily by lower solo module shipment volumes. Gross margin was 8.3% compared with gross margin of 0.3% in the fourth quarter of 25, and of course, loss margin of 2.5% in the first quarter of 25. The sequential and year-over-year increases were primarily due to the higher average selling prices of solar modules. Total pricing expenses were about $233 million, down 51.5% from 473.6 million in the fourth quarter last year, and 36% from 346 million in the first quarter last year. The sequential decreases were made primarily due to the impairment of long-lived assets in the fourth quarter, while the year-over-year decrease was primarily driven by lower expected credit losses in the fourth quarter this year. Total pricing expenses accounted for 13.1% of total revenues during the quarter compared to 18.9% in the fourth quarter of 2025 and 18.1% in the first quarter of 2025. Offering loss margin was 4.8% compared with 18.6% in the fourth quarter last year and 20.7% in the first quarter last year. Excluding the impact of changes in the fair value of convertible notes issued by Jinko Solar in 2023, changes in the fair value of long-term investments and share-based compensation expenses adjusted net loss attributes to Jinko Solar Holdings' ordinary shareholders was about $79.6 million in the first quarter, compared with $119.2 8 million in the first quarter last year, and 7.4 million in the first quarter last year, representing the significant improvement both sequentially and year-over-year. Net loss attribute to Jingguo Solar Holding's ordinary shareholders was 67.2 million in the first quarter, compared with $214.5 million in the fourth quarter of 2025, and $181.7 million in the first quarter of 2025, improving significantly both sequentially and year-over-year. Moving to the balance sheet, at the end of the first quarter this year, cash and cash equivalents were $3.3 billion, compared with $3.28 billion at the end of the fourth quarter AR turnover days was 128 days compared with 94 days in the fourth quarter of last year. Event rate turnover was 142 days compared to 75 days in the fourth quarter of last year. As of end of first quarter, total debt was $6.85 billion. compared to $6.72 billion at the end of the fourth quarter of 25. Next day was $3.5 billion compared to $3.4 billion at the end of the fourth quarter of 25. This concludes our prepared remarks. We are now happy to take your questions. Operator, please proceed.

Thank you. If you wish to ask a question, please press star and 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star and 2. If you are on a speakerphone, please pick up the handset to ask your question. Your first question comes from Philip Shen with Roth Capital Partners. Please go ahead.

Hi, everyone. Thank you for taking my questions. First one is just on margins. I was wondering if you could give us your outlook for margins for Q2, 3 and 4. You know, you just hosted your Q4 call and your Q1 margin came in much better than expected. So I was wondering if Q2 should be at a similar level or if not, maybe better. And then what's your sense for Q3 and 4? Thanks.

This is Charlie, and the Q4 growth margin jumped a lot, quarter by quarter. And I think it's a combination of the efforts we are trying to push up the price, as well as optimize the cost. And looking to the second quarter, we expect it's relatively stable, because we're still facing, we need to manage some of the impact from the old orders. But looking to the second half year, given our new capacity, new high-inflation capacity platform, it's going to deliver, you know, more and more percentage as well as we, you know, optimize the cost structures. And we expect the gross margin second half year will jump, you know, compared to the first half year.

Okay. Thank you, Charlie. Next one for me is on your full year guidance of 80 gigawatts. You know, the run rate in the first half is 14 gigawatts, so then you might need more than 25 gigawatts on a quarterly run rate in the second half of 2026. Is this expected to come from, like, this growth in quarterly run rate from 14 to 25 gigawatts? Is that expected to come from market growth, or do you think you take share, or maybe another source? Thanks.

Yeah, I think, you know, the first half year, and each quarter, we get roughly 15 gigawatts. And the China, you know, the market is relatively soft, right? And given last year's world very high numbers, And on top of that, a lot of projects in China is expected to be implemented in the second half of the year. And for the market out of China, we expect relatively, you know, in growth. And so back to your questions. And we got 75 to 85. And I think the first priority is for us is to improve the go-smarting capabilities and we will be more selective. I think one of the factors we are very confident in for the achievement is we get a very strong demand for the Tiger Neo3, the next generation TopCon products. And the second one is we believe in a world relatively good positions to take the market shares from our peers. So it's a combination. But back to your questions, and we are, you know, second half year, we definitely will have more shipments for first half year. And it's a little bit higher shipments, but we are quite flexible in terms of range, 75 to 85. And we expect to get more customers from the, next-generation top-time customers and get more market share from our peers.

Great. Thank you for the detail. I'll pass it on.

Thank you. Again, if you wish to ask a question, please press star 1 on your telephone. The next question comes from Alan Lau with Jefferies. Please go ahead.

Thanks for taking my question. So actually seeing a quite strong momentum in ESS business on the company. Would like to know if there's any updates on to the order book the company has on ESS and the regional split or anything to share because I'm seeing in the results that RACI ESS is also quite strong in Europe. So We wonder if there's any updates on what ESF expects.

So the ESF is definitely we are expecting more, you know, business opportunities in Europe, particularly, you know, the impact from the Middle East conflict. And in terms of the global mix from different regions, we are trying to minimize the China exposures. It's roughly 10% to 15%. So remaining power 85%, it's combination of, you know, the first target market in Europe, as well as we have, you know, good targets for the Asia Pacific regions and the Middle East and Latin America. And we also expect some, you know, in the U.S. as well.

So how's the margin profile across these regions?

In Europe and U.S., it's relatively higher. It's over 30 percent. In other regions, it's relatively lower, and I think roughly 10 to 15 percent. And in the first quarter, we delivered 60 percent gross margin. I think we expect a 10-year challenge from the higher material cost. So, combination-wise, we expected the, you know, we shipped 10 gigawatt-hours this year, exactly a 15% gross margin.

Understood. So, this has already factored in the increasing lithium carbonate costs, right? The 15% gross margin . Yes. Understood. So switching gears to solar business, I would like to know what's the view of the company on the field compliance and also on the Section 232 investigation on policy?

I think 232, we... We don't, you know, we don't know what exactly the timetable, you know, the party will come out. But we have, I think, you know, separate independent suppliers from Polysilicon to the manufacturing vapor cell module. So if, you know, 232 come out, I think we have time to deal with the situation. And the So your first question is talking about Longfield, right, in the U.S.?

Yes, yes, Longfield as well.

You mean the supply side or the manufacturing side?

How confident is the company to get the credits and at the same time, are your clients confident that using Jinko's product will also enable them to get the IDC as well.

Yes, yes. I think, you know, for the next two years, I think there's a lot of demands for the field modules because of the proper regulations. And at the same time, and we, you know, we have manufacturing in the U.S., and we expect to convert to non-field and joint venture manufacturing very soon. by the end of second quarter. And it's highly possible that during winter, you know, the majority of the newcomer is going to expand the capacity as well. And from the supply side, we have several, you know, non-failed sales, more solar sales and manufacturing suppliers in different regions, out of China, out of the Asia Pacific regions. And so we're confident for this year as well as we try to build more resources and to have a good foundation for next year.

So the JV partner will be known by end of second quarter, which is basically two months from now. And is it a U.S. player?

It's an investor, you know, China investor. It's, you know, definitely compliant with OBDB, you know, regulations.

Understood. So, but we will know in two months.

Yes, yes.

Understood. And is there any plan for capacity expansion And speaking of capacity expansion, there is quite some concern on the export of solar equipment from China. So what's your view on that?

Yeah, there's, I think, in the news and in the media, there's maybe possible, you know, some kind of export restrictions. And But we didn't give a final confirmation to any side documents. But in terms of what I'm talking about, the capacity expansions, and they could go through the merger acquisition existing module capacity in the U.S. So I think the joint venture is not looking for a very big expansion system. Otherwise.

Understood. So, and switching there to space-based solar, so what if the progress on that front, like are there any products dedicated to AI data centers in space? Are there any relevant updates on that part of the business?

I think our R&D team has done some kind of preparations for the solar panels depending on different technologies like the silicon, like the percussive gate. And we made some progress on the silicon-based technology for space testing. And our target is by the end of the second quarter, we can get it. give the example ready, and it could be work with some, you know, space companies to do the testing.

Understood. So there will be, so the panels will be launched in satellites and be tested in 2.2?

It's not determined, but it's going to, you know, we are trying to explore the different parameters. Definitely, you know, when you do some space-based solar panels, definitely we try to test the inner space.

Understood. That's clear. So my final question is what's your view on the demand second half because the demand now is quite weak. So I wonder if you are expecting any policies or any signs that demand will recover in second half on solar?

Yeah. Yeah, so from demand side, we expect the current slowing down in Q2 or early Q2 is perfectly natural because of the rush hour by end of Q1 has decreased. pull in a lot of demand from Q2, right? So everyone tried to get a benefit for the last minute rush before the China VAT policy change. So I think that the slowing down Q2 is within the expectations. But we still are looking to the whole year demand, especially for second half, we are still kind of optimistic. I think three reasons behind it. One reason is because after the recent conflict in the Middle East, you know, we heard a lot of, you know, the energy security topics, right? The solar or wind, that can provide more energy securities. Many countries put that into a national strategy. So that potentially trigger more demand. And secondly, it's because of the rising demand from AIDC topics. We see massive upcoming projects combined between renewables and AIDCs all over the world. And the third important reason is because of the, we call it the CNI or distributed generation market demand is still very robust, and now we can feel a very strong demand from that perspective. Even in the emerging markets, the CNI sectors, BG sectors, demand are pretty solid and robust even for the whole year. So combine everything together, we still expect a healthy or at least a solid demand in the second half. That's from the high levels. If you break into details, because of the strong demand in China in last year, we believe the China demand will drop roughly 20% compared to last year. But if we're talking about the non-China demand, we can see roughly 10% increase year over year. So combine everything together, I think it will be roughly 5% to 10% increase demand decreased in 2026 versus 2025. But if you look into the seasonality, the second half definitely will be stronger than first half.

So I'll pass on. Thank you.

Thank you.

Thank you. The next question comes from Rajiv Chaudhary from Sunsara Capital. Please go ahead.

Good morning and thank you for taking my call, my question. So my question, the first question I have is about average selling prices. You have mentioned that prices are stable going into the second quarter versus the first quarter. But I want to get your sense on how the second half pricing is going to be and also you know, you have been doing a lot of product development focusing on higher energies or better positioning of the product in terms of market segments like trying to aim for markets where there's a lot of dust, for example. So you have been positioning, segmenting the market and trying to bring out products for these different use cases. My question is, does this allow you to get better pricing than the market on average? And could we see your average selling prices actually be inching up both because of high performance as well as because of market segmentation as we go through the year? That's my first question.

Yeah, thank you. Thank you for the question. And thank you for your insight. That's our target. What you're just saying is exactly what we're targeting at. But nobody has a crisp goal to know the future. So we're working hard. On one side, there's a strong government push in China trying to have the whole industry get rid of or get out of the price competition. Another way we are looking to is we try to target the customers and the business as a value-added perspective instead of price competition perspective. So in that case, we hope we can work with the scenario of steady, healthy market prices. Actually, if you take a deeper look into the prices recent days versus the price in Q1, you can feel that actually even the policy change, the demand is weak in Q2, actually the market price is not dropping as many people expected, right? So it's really because of, you know, the manufacturer side has suffered so much and nobody would like to sell at huge loss making. Another reason is really the market itself, the market demand itself is still capable to absorb the higher prices. It doesn't have to be a price competition. We could make the market competition more healthy way instead of a number game. So, yeah, back to your question. Personally, I'm optimistic about the market prices in the rest of the year, and hopefully it would remain at a healthy range for everyone.

Great. Thank you. And my second question is about cost. You know, as you're pushing towards the higher value-added product, does that automatically mean that your costs will also be higher or the costs are going to keep on coming down because you are just getting better and the scale is getting better in terms of the size of the business.

So the high-efficient product like the NEO3 definitely is going to generate more profitability than those margins. And you are talking about scenario-based product, right? That is what we are trying to build in different scenarios, like AIGC, like anti-dark, whatever, and the channel penetrations, which will definitely bring, I think, additional capabilities. I think we are upgrading our capacity to the next quantum equation products, and of course, with the the economy will scale, the cost will be optimized as well.

Thank you.

Thank you. Thank you.

Thank you. There are no further questions at this time. With that, we conclude our conference for today. Thank you for participating and you may now disconnect.