The leading solar module maker’s loss more than tripled in the fourth quarter of last year, as its gross margin barely managed to stay positive
image credit: Bamboo Works
Key Takeaways:
- JinkoSolar’s revenue fell 15% in the fourth quarter, easing from a 34% decline in the previous quarter
- The solar products maker forecast its shipments would continue to fall this year, as its new CEO called 2026 a “transition year”
Record gold prices may be getting all the attention in commodities headlines lately, but similarly spiking prices for silver have been causing headaches for solar companies these days. That factor nearly drove JinkoSolar Holding Co. Ltd. (NYSE:JKS)(688223.SH) back into the difficult position of spending more to produce each of its solar cells and modules than it could sell them for, just two quarters after its gross margin returned to positive territory.
The rising yuan, JinkoSolar’s home currency, also worked against the company’s gross margin, which dropped to just 0.3% in the fourth quarter of last year, well below the 7.3% in the third quarter and 2.9% in the second quarter, according to its latest results published on Thursday. Just as disheartening for investors, the company forecast its shipments would continue to decline this year, as its recently named CEO Cao Haiyun referred to 2026 as a “transition year.”
Adding to its woes, the company and its peers took a hit from April 1, as China officially cancelled its yearslong tax rebate policy for exported photovoltaic products. That policy previously dropped the value added tax that solar companies had to pay for their products to 9% for exports from the standard 13%.
That rebate policy was just one of many Chinese government subsidies designed to promote the industry’s development for years – something Western countries often complained about, saying it gave Chinese manufacturers an unfair advantage over global competitors. China is eliminating the export rebate policy as part of a broader campaign to wean its companies from reliance on government support and end a destructive price war that has plunged most manufacturers into the red in the last year.
JinkoSolar was typical of the group, reporting a massive …
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