JinkoSolar Reports $635.6M Net Loss, Plunging Margins in 2025; Faces New USITC Patent Probe and PRC Export Tax Hit

summarizeSummary

JinkoSolar's 2025 annual report confirms a substantial net loss and plummeting gross margins, compounded by a new USITC patent infringement investigation and the cancellation of PRC export tax rebates, signaling significant headwinds despite an expanded share repurchase program.

check_boxKey Events

• Significant Net Loss and Margin Decline

  The company reported a net loss attributable to ordinary shareholders of US$635.6 million for the fiscal year 2025, a substantial decline from a net income of US$54.5 million in 2024. Gross margin plummeted to 2.2% in 2025 from 10.9% in 2024, and operating loss reached US$1.27 billion.

• New USITC Patent Investigation

  First Solar initiated a Section 337 investigation with the U.S. International Trade Commission (USITC) on February 24, 2026, alleging patent infringement by JinkoSolar's TOPCon solar products. This poses a significant legal risk, potentially affecting the company's ability to sell these products in the U.S.

• PRC Export Tax Rebate Cancellation

  Effective January 8, 2026, the PRC government cancelled export tax rebates for photovoltaic modules. This policy change is expected to increase export costs and reduce JinkoSolar's price competitiveness in overseas markets.

• Share Repurchase Program Extended and Increased

  The existing share repurchase program was extended through June 30, 2026, and the aggregate value authorized for repurchase was increased from US$200 million to US$350 million on December 10, 2024. A modest repurchase of 30,635 ADSs occurred in May 2025 at an average price of $18.00 per ADS.

auto_awesomeAnalysis

JinkoSolar's annual report for 2025 confirms a significant deterioration in financial performance, with a net loss of $635.6 million and a sharp decline in gross margin to 2.2%. This follows a previous 6-K filing that indicated weaker results. Critically, the filing also reveals new material risks, including a Section 337 investigation by the U.S. International Trade Commission (USITC) initiated by First Solar over alleged TOPCon patent infringement, which could impact sales in the U.S. market. Additionally, the cancellation of PRC export tax rebates for photovoltaic modules, effective January 8, 2026, is expected to increase export costs and reduce competitiveness. While the company extended its share repurchase program and increased its authorization to $350 million, these positive capital allocation efforts are overshadowed by the severe financial downturn and emerging legal and regulatory challenges.