JinkoSolar (NYSE:JKS) reported second-quarter 2026 module shipments of approximately 16 GW, while management said persistent supply-demand imbalances, policy changes and pricing pressure across the photovoltaic supply chain continued to weigh on profitability.
Chief Executive Officer Dimi Xu, who said he was honored to assume the CEO role during the company’s 20th anniversary year, said JinkoSolar is shifting its focus from shipment scale toward effective supply, product value, profitability and cash flow. The company said it is optimizing its order book, geographic sales mix and manufacturing utilization while increasing the proportion of high-efficiency products in its deliveries.
Second-quarter financial performance
Gross margin was 4.2%, compared with 8.3% in the first quarter and 2.9% in the year-earlier period. Chief Financial Officer Pan Li said the sequential decline reflected lower average selling prices for solar modules, while the year-over-year improvement was mainly due to higher average selling prices versus the second quarter of 2025.
Operating expenses rose to $287 million, up 21% sequentially and 2% year over year, principally because of higher expected credit losses, according to Li. Operating loss margin was 11.6%, compared with 4.8% in the prior quarter and 7.7% a year earlier.
Li said the company generated positive operating cash flow during the period and expects full-year operating cash flow to improve from 2025. Accounts receivable turnover improved to 113 days from 128 days in the first quarter, while inventory turnover improved to 125 days from 142 days.
- Cash and cash equivalents were approximately $2.5 billion at June 30, down from $3.3 billion at the end of the first quarter.
- Total debt declined to about $6.6 billion from $6.8 billion.
- Net debt increased to $4.1 billion from $3.5 billion.
- The company’s asset-to-liability ratio declined by roughly 1.5 percentage points from the start of the year.
High-efficiency products and revised shipment outlook
Xu said JinkoSolar expects to have more than 40 GW of TOPCon 3.0 production capacity by the end of 2026. Under new national energy-efficiency standards scheduled to take effect in January 2027, the company expects those products to meet level 1 energy-efficiency requirements.
The company in June introduced its Tiger Neo 5.0 modules, which Xu said achieved mass-produced efficiency of 25.91% and power output exceeding 700 watts. Chief Marketing Officer Gener Miao said Tiger Neo 3.0 products maintained a premium of about $0.01 per watt over conventional modules, while newer scenario-based products began shipping in small quantities during the second quarter and carried premiums of roughly $0.005 to $0.01 per watt.
Management reduced its full-year module shipment outlook to between 60 GW and 70 GW, with high-efficiency products expected to account for more than 60% of shipments. Third-quarter module shipments are projected at 15 GW to 17 GW.
Charlie Cao, CEO of JinkoSolar Co., said the revised outlook reflected a decision to prioritize profitability, operating cash flow and order quality rather than scale. He said domestic Chinese demand in 2026 is expected to be 30% to 40% below last year’s level, and JinkoSolar is reducing its exposure to China’s highly competitive, low-price market while targeting higher-value markets including the United States and Europe.
Management said it expects module average selling prices to rise in the third quarter, supported by higher spot-market pricing and a larger mix of Tiger Neo 3.0 products. Cao also said gross margin should show a moderate improvement as new facilities reach fuller operating status and input costs decline from second-quarter levels.
Energy storage expansion
Energy storage system shipments reached 3.1 GWh in the first half, rising significantly from a year earlier. About 1.5 GWh was recognized as revenue during the period, including more than 1 GWh in the second quarter, as project delivery timing, testing and commissioning affected revenue recognition.
JinkoSolar expects full-year energy storage shipments to more than double year over year. Cao said the company expects a second-half-heavy delivery schedule and remains confident it can achieve its annual target. The company is pursuing an asset-light storage strategy, with roughly 5 GW of battery-cell capacity and 20 GW of battery-pack capacity currently in place, and no expansion plans. Management said its storage investment focus will be on solutions, technical services, branding and sales capabilities rather than additional equipment.
Investment portfolio and capital spending
Xu said JinkoSolar has invested in more than 40 companies through direct investments and fund platforms, initially focused on solar and energy storage and more recently expanded to areas including artificial intelligence and other frontier technologies. As of June 30, the company had invested approximately RMB1.86 billion in cash, with its remaining portfolio carrying an original cash cost of about RMB1.5 billion and a fair value of approximately RMB1.99 billion.
The portfolio generated gains of approximately RMB490 million during the first half, including RMB110 million in realized gains and RMB380 million in unrealized fair-value gains. JinkoSolar also divested a substantial portion of its LAPLACE Renewable Energy Technology investment, receiving more than RMB300 million in cash proceeds.
Cao said the company expects only limited maintenance capital expenditures during the next two years and does not anticipate significant new investment in production capacity. Any future overseas manufacturing expansion, he said, would likely use joint-venture structures to limit capital requirements.
About JinkoSolar (NYSE:JKS)
JinkoSolar Holding Co, Ltd. (NYSE: JKS) is a vertically integrated solar photovoltaic (PV) manufacturer headquartered in Shanghai, China. The company specializes in the design, development and production of high-performance solar modules, silicon wafers, solar cells and related components. Since its founding in 2006, JinkoSolar has become one of the world’s largest solar module suppliers, known for delivering reliable products to utility, commercial and residential customers.
JinkoSolar’s product portfolio encompasses a broad range of monocrystalline and polycrystalline PV modules, including half-cell, bifacial and high-efficiency Tiger module series.
