JinkoSolar subsidiary reports sharp profit drop in 2024

Published 27/02/2025, 13:39
JinkoSolar subsidiary reports sharp profit drop in 2024

SHANGRAO, China - JinkoSolar (NYSE:JKS) Holding Co., Ltd. (NYSE: JKS), a leading solar module manufacturer currently trading at $23.86 per share, disclosed preliminary financial figures for its main operating entity, Jiangxi Jinko, revealing a significant year-on-year decline in profitability for the period ending December 31, 2024. According to InvestingPro data, the company maintains a healthy dividend yield of 12.41% despite recent challenges. The unaudited results show Jiangxi Jinko’s revenues fell by 21.96% to RMB 92.62 billion, while net income attributable to shareholders plummeted by 98.78% to RMB 90.54 million. Excluding extraordinary items, the net loss for shareholders was RMB 1,011.98 million, down 114.66% from the previous year.

These results reflect a challenging year for the photovoltaic industry, marked by oversupply and falling product prices, which eroded profit margins across the sector. With a current gross profit margin of 12.79%, the company faces profitability pressures common in the semiconductor equipment industry. Despite these conditions, Jiangxi Jinko’s operational resilience was notable, attributed to its technological leadership, optimized capacity structure, and strong international market presence. InvestingPro analysis suggests the stock is currently undervalued, trading at just 0.46 times book value. Nonetheless, the company faced substantial financial headwinds, exacerbated by short-term issues such as the phasing out of outdated production capacity and a fire incident.

Investors are advised to approach these preliminary figures with caution, as they are subject to change pending a complete audit and are prepared according to PRC GAAP, which may differ from U.S. accounting standards. The reported financials are specific to Jiangxi Jinko and do not reflect the consolidated results of JinkoSolar and its other subsidiaries.

JinkoSolar, with a 58.59% equity interest in Jiangxi Jinko, operates globally, boasting a diverse customer base and a broad international footprint, including over 10 production facilities and more than 20 subsidiaries worldwide.

The company’s performance in the face of industry-wide pricing pressures underscores the volatile nature of the solar market and the importance of strategic agility. The information in this article is based on a press release statement.

In other recent news, JinkoSolar Holding Co., Ltd. has been in the spotlight due to several significant developments. GLJ Research has lowered its price target for JinkoSolar to $10.95, maintaining a Sell rating. The firm cited potential tariff risks from the Trump administration and a projected oversupply in the solar industry by 2025 as key concerns. GLJ Research also forecasts that JinkoSolar’s revenue and adjusted earnings per share for 2025 could fall significantly below consensus estimates, with revenue projected at $12.5 billion and adjusted EPS at -$1.01. Additionally, for the fourth quarter of 2024, the firm expects JinkoSolar to report revenue of $2.894 billion and an adjusted EPS of -$0.42, which would miss Wall Street’s expectations.

Moreover, JinkoSolar’s principal operating subsidiary, Jiangxi Jinko, has reported a sharp decline in net income for the year ending December 31, 2024. The subsidiary estimates its preliminary unaudited net income to be between RMB80 million and RMB120 million, marking a decrease of over 98% compared to the previous year. Furthermore, a preliminary unaudited net loss, excluding extraordinary gains and losses, is expected to range from RMB750 million to RMB1,050 million. These figures are prepared under PRC GAAP, which differs from U.S. GAAP used in JinkoSolar’s consolidated financial statements. The company has advised investors to exercise caution regarding these preliminary figures.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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