• Total Revenue: $3.5 billion, up 2% sequentially, down 23% year over year.

• Gross Margin: 15.7%, up from 11.1% in the previous quarter, down from 19.3% year over year.

• Net Income: $3.2 million.

• Adjusted Net Income: $14.8 million.

• Total Operating Expenses: $539 million, down 1% sequentially, up 20% year over year.

• Cash and Cash Equivalents: $3.2 billion at the end of the third quarter.

• Total Debt: $5.23 billion at the end of the third quarter.

• Net Debt: $2.05 billion at the end of the third quarter.

• AR Turnover Days: 90 days.

• Inventory Turnover Days: 66 days.

• Module Shipments: 25.9 gigawatts in the third quarter.

• Warning! GuruFocus has detected 4 Warning Signs with JKS.

Release Date: October 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• JinkoSolar Holding Co Ltd (NYSE:JKS) achieved significant improvements in gross margin, reaching 15.7%, and net income of USD 3.2 million, showing sequential growth.

• The company maintained its global leading position in module shipments, with 25.9 gigawatts shipped in the third quarter, and a strong presence in the US market.

• JinkoSolar's N-type TOPCon technology continues to advance, with mass-produced efficiency improving to approximately 26.2%, reinforcing its competitive edge.

• The company is actively investing in R&D and digital transformation, enhancing its smart production capabilities and integrating advanced technologies like IoT and AI.

• JinkoSolar's commitment to ESG management is evident, with third-party ESG audits completed for most key suppliers and participation in global climate initiatives like the New York Climate Week.

Negative Points

• The imbalance between supply and demand led to continuous price declines in the end market, impacting the entire industrial chain.

• Module exports decreased sequentially in September due to seasonal demand volatility in some overseas markets.

• Total revenue decreased by 23% year over year, primarily due to a decrease in the average selling price of solar modules.

• Operating expenses increased by 20% year over year, driven by higher shipping costs and impairment of long-lived assets.

• The company faces risks related to international trade policies, such as the AD/CVD decision in the US, which could impact future shipments and pricing.

Q & A Highlights

Q: Can you confirm the volume of modules shipped into the US in Q3 and provide the expected megawatts for Q4? A: Gener Miao, Vice President for Global Sales and Marketing, stated that Q3 shipments to the US were roughly 15% to 18% of total shipments. For Q4, the number is expected to be lower due to seasonality and market turbulence, but the total for the year should meet expectations of 5% to 10% of total shipments.