Q2 and Q3 2025 JinkoSolar Holding Co Ltd Earnings Call

Stella Wang: In summary, the global supply chain is receding, and the balance between supply and demand is gradually improving. As technological upgrades accelerate the industry high-quality development, the market share of high-power and high-value products will continue to expand and become a dominant force in market pricing. As market competition, particularly in project bidding, increasingly favors leading enterprises that demonstrate strong technological capabilities and long-term reliability, resources such as bank financing are also concentrating towards leading enterprises, further strengthening their market share. With strong technological capabilities, long-term reliability, and global diversification of our energy storage business, we are well positioned to further strengthen our competitiveness and benefit from the industry next upward cycle.

Time, all participants are in listen only mode. After management's prepared remarks, there will be a question and answer session.

As a reminder, today's conference call is being recorded I would now like to turn the meeting over to your host for today's call you celebrate zynga. So loose Investor Relations. Please proceed Stella.

Speaker #1: all participants are in listen-only After management's prepared remarks, there will be a question-and-answer session. As a reminder, today's conference call is being recorded. I would now like to turn the meeting over to your host for today's call, Ms. Stella Wang.

Thank you operator, thank you everyone for joining us today for <unk>.

In the third quarter 2025 earnings conference call. The company's results were released earlier today and available on the company's IR website at Www Dot single solar for Tom as.

Speaker #1: JinkoSolar's Investor Relations. Please proceed, Stella.

Speaker #2: Thank you, Operator. Thank you, everyone, for joining us today for JinkoSolar's second and third quarter 2025 earnings conference call. The company's results were released earlier today and are available on the company's IR website at www.jinkosolar.com, as well as on newswire services.

As well as all Newswire services. We have also provided a supplemental presentation for today's earnings call.

Also be found on the IR website.

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Speaker #2: We have also provided a supplemental presentation for today's earnings call, which can also be found on the IR website. On the call today from JinkoSolar are Mr. Li Xiande, Chairman and CEO of JinkoSolar Holding Co., Ltd.; Mr. Gener Miao, CMO of JinkoSolar Co., Ltd.; Mr. Ke Li, CFO of JinkoSolar Holding Co., Ltd.; and Mr. Charlie Tao, CFO of JinkoSolar Co., Ltd. Mr. Li will discuss JinkoSolar's business operations and company highlights.

Philip Shen: 近期国家对新能源行业的支持力度持续加强，十五五规划意见明确提出加快能源供应端与消费端的低碳化。国家八改委能源局近期发布了关于促进新能源消纳与电力调控的指导意见，进一步加强了储能在新型能源体系建设中的关键作用。我们预期这些措施将进一步提升中国新能源行业的竞争力，推动行业长期回归到健康合理的发展轨迹。

The city well disgusted fulfill their business operations and company highlights followed by Mr. Miao, who will talk about yourself in the market. He has amidst the pattern be who will go through the financial.

All of the other level to also purchase during the Q&A session that follows.

Note that today's discussion will contain forward looking statements made under the safe Harbor. So they don't solve the U S. Private Securities Litigation Reform Act of 1995 forward looking statements.

Speaker #2: Followed by Mr. Miao, who will talk about the sales and marketing, and then Mr. Ke Li, who will go through the financials. They will all be available to answer questions during the Q&A session that follows.

Stella Wang: The 15th Five-Year Plan proposed accelerating the decarbonization of both the energy supply and consumption sectors. The National Development and Reform Commission, NDRC, and the National Energy Administration, the NEA, have also recently issued guidance on promoting renewable energy integration and power system regulation, further emphasizing the critical role of energy storage in the construction of a new energy system. We expect these measures will further strengthen the competitiveness of China's renewable energy sector and steer the industry back onto a healthy and rational development path.

Gary.

Speaker #2: Please note that today's discussion will contain forward-looking statements made under the Safe Harbor Provisions of the U.S. Private Securities Litigation Reform Act of 1995.

And uncertainties as such our future results may be materially different from the views expressed today.

Formation regarding this and other risks is included in single cell, there's public filings with the Securities and Exchange Commission. He goes over and does not assume any obligation to update any forward looking statements, except as required under the applicable law now it's my pleasure to introduce him. He said he joined us.

Speaker #2: Forward-looking statements involve inherent risks and uncertainties, as such future results may be materially different from the views expressed today. Further information regarding this and other risks is included in JinkoSolar's public filings with the Securities and Exchange Commission.

Sure Matt Mr. Yao of single Solar Hoodie. He said he will speak in Mandarin and I will translate his comments between.

Philip Shen: 在万四季度及全年, 我们将积极持续响应行业高质量发展的要求, 合理控制开工率, 聚焦高效产能的升级改造, 同时积极应对海外的政策的变化, 保障对客户的持续可持续供应。我们也会不断强化在技术创新和全球化方面的竞争优势, 实现规模和利润的平衡, 巩固龙头地位。2025年全年, 含组件电池硅片的总出货量预计将在85 GWh到100 GWh, 全年储能出货预计在6 GWh。

Speaker #2: JinkoSolar does not assume any obligation to update any forward-looking statements, except as required under applicable law. Now it's my pleasure to introduce the CEO of JinkoSolar Holding.

Please go ahead.

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Speaker #2: Introducing Mr. Li Xiande, Chairman. Mr. Li will speak in Mandarin, and I will translate his comments into English. Please go ahead, Mr. Li.

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Speaker #3: 前三季度全球组建重出货量为61.9个GW，再度产量全球组建出货量第一。凭借卓越的产品性能和海外高价值市场的领先布局，二季度毛利率为2.9，三季度毛利率为7.3%，毛利率环比大幅改善。星期四是我们过去两年在储能研发产品等方面深耕，正在组建迎来收获。前三季度储能产品累计发货量已超过3.3个GWh，连续两个季度环比大幅增长，叠加海外市场的占比提升，储能业务的盈利能力明显改善。考虑到储能产品有安装调试和验收的过程，报表单显示的确认会相对滞后。我们有信心随着规模效应的逐渐体现和竞争力的持续增长，明年储能业务将迎来翻倍以上的增长，储能收入将大幅度增加，预计为我们整体业务毛利率带来创造性的增长贡献。

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Stella Wang: Looking forward to the fourth quarter and the full year, we will continue to actively respond to the industry's call for rational development by maintaining reasonable production levels, and focusing on upgrading and transforming high-efficiency capacity. At the same time, we will proactively adapt to changes in overseas policies to ensure sustainable supply for our customers. We will keep strengthening our competitive advantages in technology and global operations, achieve a balance between scale and profitability, while consolidating our industry-leading position. We expect total shipments, including solar modules, cells, and wafers, to be between 85GW to 100GW for the full year of 2025, and ESS shipments to be 6GWh for the full year 2025.

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And our first of three quarters of 2025 of our global module shipments totaled 51.9 gigawatt. Once again ranked number one worldwide driving by our outstanding products performance and a strong presence in high value overseas market gross margin improved sequentially for two consecutive.

Speaker #2: In the first three quarters of 2025, our global model shipments totaled 61.9 GW, once again ranking number one worldwide. Driven by our outstanding product performance and strong presence in high-value overseas markets, gross margin improved sequentially for two consecutive quarters, reaching 2.9% in the second quarter and 7.3% in the third quarter.

Two to four 9% in the second quarter and a seven 3% in the third quarter net loss continued to narrow excuse me. Shortly we are pleased to see that our intensive efforts devoted to discourage R&D and product in the past the two year started to bear fruit gradually.

Charlie Cao: Thank you, Mengmeng Li. Total shipments were 21.5 GW in the subquarter, with module shipments accounting for 93%. By the end of the subquarter, we became the first module manufacturer in the industry to achieve accumulative global module shipments of 370 GW, with total accumulative shipments of TigerNeo series surpassing 200 GW, the best-selling module series in history. In terms of geographic mix, in Q3, we focused on high-value overseas markets, with shipments accounting for over 65%, achieving strong growth in Asia-Pacific, emerging markets, and Europe. Shipments to the US were nearly 1.3 GW in the subquarter, double sequentially. Against the backdrop of the electricity market reform, customer demand for high-power products continues to rise. Our high-power TigerNeo 3.0 series, with its life efficiency rate of 85% and excellent low-light performance, can generate stable electricity during storms, dust, and cloudy weather, effectively extending power generation hours.

First the three quarters, our community of energy storage system, but yeah that shipments. It stayed at three three gigawatts hour increase the significant demand for two two consecutive quarters. This combined with a rising share of overseas markets has helped the profitability of our energy storage a bit.

Speaker #2: To narrow sequentially, we are pleased to see that our intensive efforts devoted to net loss continued storage, R&D, and products in the past two years started to bear fruit gradually.

Speaker #2: In the first three quarters, our cumulative energy storage system (ESS) shipments exceeded 3.3 GWh, increasing significantly for two consecutive quarters. This, combined with the rising share of overseas markets, has helped the profitability of our energy storage business improve noticeably.

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That revenue recognition in our financial statement, we are confident that economics of scale accelerates and our competitiveness continues to improve.

Speaker #2: Considering that energy storage products involve the processes of installation, conditioning, and acceptance, there will be a lag in revenue recognition in our financial statements.

Energy storage business will more than double next year its revenue contribution.

This rise significantly and has served as a key driver of our overall gross margin expansion.

Speaker #2: We are confident that, at economies of scale, acceleration and competitiveness continue to improve. Our energy storage business will more than double next year. Its revenue contribution is expected to rise significantly and serve as a key driver of our overall gross margin expansion.

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Charlie Cao: At the same time, in a market environment with increasing volatility in electricity spot prices, the outstanding power generation performance of TigerNeo 3.0 enables more power generation during peak price periods in the morning and evening, creating higher yield and more reliable returns for clients. According to our outward field test data in Chengdu, China, under low-light conditions such as storm and dust, TigerNeo achieves a 7.2% gain compared to BC products, and in Kagoshima, Japan, TigerNeo shows 10.79% yield gain over BC products in low-light conditions. In the third quarter, we delivered some high-power products that carry $0.01 to 0.02 premium compared to conventional products. We expect our high-power TigerNeo 3.0 products with maximum power of up to 670 Wp to be produced in large scale next year, further strengthening our competitiveness on the product side.

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Speaker #3: 二季度和三季度，我们的组建开工率维持在合理水平。三季度以来，尚有硅料、硅片、电池环节有一定幅度的涨价，组建价格稳中有升。由于136号文下各层的竞价机制仍在落地中，央国企终端仅项目收益率的测算和商业模式需要一定的时间，预计需求的释放仍需要一定时间。但行业从原料环节呈现积极的信号，受原料产量价格上涨推动，海外组建价格也有所上涨。

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In the second and third quarter, we continue to keep moderate.

Elevation risks and I read in the bone level things not third quarter prices of poly silicon wafers themselves have all ryzen and module prices showed some upward trends given that speeding rules. The oil provinces are still in the implementation fifth central and the state owned enterprises need some time to be tax relief there.

Speaker #2: In the second and

Speaker #2: In the third quarter, we continued to keep model utilization rates at a reasonable level. Since the third quarter, prices of polysilicon wafers and cells have all risen, and model prices have shown some upward trends.

Our IRR return and adjusted their business models for any project that is expected that the demand will it take some time to release.

Speaker #2: Given that bidding rules in all provinces are still in the implementation phase, central and state-owned enterprises need some time to recalculate their IR returns and adjust their business model for end projects.

Ever we have seen some positive signals in the raw material segment.

Part of Fireeye, the raw material prices moderate privacy overseas markets have also increased.

Charlie Cao: We once again topped the PVPAC 2025 Q3 module pack capability report with AAA rating, thanks to our solid operational capabilities, outstanding technological innovation, and strong recognition from global customers. As one of the few enterprises to continuously maintain top-tier creditworthiness and technological strength in the global PV industry, in the latest release of BNEF Energy Storage Tier One List of Q4 2025, we were recognized as Tier One Energy Storage Provider for the seventh consecutive quarter. Our continuous efforts in sustainable development have also earned international recognition repeatedly. In the recent MSCI ESG rating, we were upgraded to an A rating, maintaining our position in the top tier of ESG performers in the global PV industry. Additionally, our S&P CSA score continues to improve from 2024, rising significantly to 78, far ahead of the industry. On the demand side, we expect global PV demand to slightly contract in 2026.

Speaker #2: It is expected that demand will take some time to release. However, we have seen some positive signals in the raw material segment. Supported by rising raw material prices, model prices in overseas markets have also increased.

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Speaker #3: 开工率的产能的升级成为加快行业高质量发展的重要方向。这也契合了终端客户对高中立产品的需求，以实现更可靠的投资回报。我们作为行业率先进行产能升级的公司，三季度的高功率产品升级稳步推进。目前已交付了部分高功率的非辅系列产品，相较未升级的产品溢价在1到2个美分，随着最高功率可以达到670瓦的非辅3系列产品组建完成升级改造。我们预计2026年的高功率产品的出货量占比会逐渐提升。2026年全年高功率产品的出货占比不低于60%。

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The upgrades won't hydropower production capacity has become an important direction for accelerating industry high quality development. This technical.

Upgrade also need spend customers demand for high powered to.

Speaker #2: The upgrade toward high-power production capacity has become an important direction for accelerating the industry's high-quality development. This technical upgrade also meets end customers' demand for high-power products to achieve more reliable investment returns.

To achieve more reliable documents written at the industry pioneer to upgrade it because they've seen tough comp capacity throw technology enhancements, we made steady progress in high power product upgrades in the third quarter, we have already delivered some high power products carry a premium of one to two you access.

Speaker #2: As an industry pioneer in upgrading existing top-con capacity through technology enhancements, we made steady progress in high-power product upgrades in the third quarter.

As for work compared to the conventional products and upgrade of the first generation type of new product service Mexican learn cover of 666 times, where the seventies. What piece is the complete it is that the shipments propulsion of high power products to increase quarter over quarter deck yet.

Speaker #2: We have already delivered some high-power products, carrying a premium of 1 to 2 US cents per watt compared to the conventional products. As the upgrades of the third generation Tiger New product service, with a maximum power of 670 watt-peak, are completed, we expect the shipment proportion of high-power products to increase quarter over quarter next year.

Charlie Cao: In China, due to the implementation of policy reform 136, the pace of carrying out the 15th Five-Year Plan, as well as industry self-discipline and anti-evolution measures, demand is expected to slightly decrease year over year in 2026. Markets outside China are generally expected to remain healthy. In the mid to long term, the urgent power demand from AI data centers, combined with most countries' commitment to reduce carbon emissions, will jointly drive growth in the global deployment of clean energy, and the new grid infrastructure over the next three to five years. The Information Office of the State Council recently released the white paper of China's action on carbon peaking and carbon neutralities, which emphasizes that energy storage is a key support for building a new type of power system, and advocates actively developing the renewable energy plus energy storage solution.

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Speaker #2: Accounting for 60% or above in 2026.

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Charlie Cao: In the US, we are already seeing some tech giants deploying co-located or nearby solar plus storage at their data centers to meet rapidly growing electricity needs. We believe renewable energy plus energy storage has become an invisible, accelerating trend. We remain optimistic about the long-term prospects of the US market. Although trade policies impose certain constraints on the manufacturing side, we have taken proactive measures and made early strategic deployments, adjusting our manufacturing and supply chains in response to policy changes to provide US customers with long-term, stable, and reliable solutions. We are confident that leveraging our advantage in technology innovation, high-power products, and global network, we can continue to satisfy our global clients' demand for clean, safe, high-efficiency, and reliable integrated solar and storage solutions. We will also continue to improve our competitiveness in global markets.

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Yes, the market.

Christy reform has to remove the mandatory energy storage requirements kind of analysts always industries.

Accelerating as market oriented development.

Increasing gap between peak and off peak electricity prices and the implementation of policies, such as capacity pricing and capacity compensation independent energy storage projects in multiple provinces kind of cheap dump economic returns rather than by both improving economics and a global.

Speaker #2: Since 央司6号文取消强制配储后，国内储能正在加速市场化，分股价差的拉大，叠加容量变价，容量补偿等政府支持，多个省份的独立储能项目可实现较好的经济性。在经济性和能源转型的驱动下，海外如欧洲、亚太、中东、拉美等地区需求也多点开花。在美国，AI算力中心的迅速扩张及制造业带来的制造业增长带来前所未有的电力需求，而本土电力供应面临挑战。官方加储能成为更安全、更易部署的方案。预计全球储能需求将在新能源上透率提升与储能系统成本下降的双重驱动下迎来了爆发性的增长。这也充分印证了我们在储能业务的前瞻性布局，是顺应行业发展的正确选择。我们也积累了长期的竞争优势，作为关乎领域的头部企业，我们拥有长期积累的渠道、品牌和客户资源优势，可以为客户提供本土化、一站式的关储解决方案。在制造端，公司目前拥有12个GWh的系统集成产能和5个GWh的电芯产能。通过自研技术突破，不断提升储能产品的性能和竞争力，市场上我们聚集了高毛利的海外市场，重点覆盖了大型储能和工商业项目，交付周期较长但需求旺盛，为公司储能的业务提供了稳定且可持续的增长动力。 market-based electricity reform has removed the mandatory energy storage requirements, China's energy storage industry is accelerating its market-oriented development. With the increasing gap between peak and off-peak electricity prices, and the implementation of policies such as capacity pricing and capacity compensation, independent energy storage projects in multiple provinces can achieve sound economic returns.

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Operator: Thank you, JinkoSolar. We are pleased that our focus on high-performance products and high-value markets, as well as our efforts in cost and expenses control, have delivered steadily improved financial results. Gross profit margins turned positive in the second quarter and continued to improve by 4.4 percentage points in the third quarter. Net loss and adjusted net loss narrowed sequentially for two consecutive quarters. Operating cash flow was RMB 340 million in the third quarter, improving significantly quarter over quarter. Operating cash flow is expected to be positive for the full year 2025. Moving to the details in the third quarter, total revenue was $2.27 billion, down 10% sequentially and 34% year over year. The sequential decrease was mainly due to a decrease in the solar module shipments, and the year-over-year decrease was primarily due to a decrease in average selling price of solar modules.

Speaker #2: Driven by both improving economics and global energy transition, demand is increasing in Europe, Asia-Pacific, the Middle East, and Latin America. In the U.S., the rapid expansion of AR data centers has led to an unprecedented surge in electricity demand.

In the U S and rapid expansion of AI.

This effort has led to unprecedented search electricity demand spending domestic electricity supply.

Plus storage has therefore emerged as a safer and a more evenly deployed solution, we expect global demand for energy storage to experience explosive growth flattened by a crazy renewable energy penetration and it's declining already saved some cost. This once again that it is a strategic decision.

Speaker #2: Streaming domestic electricity supply, solar-plus-storage has therefore emerged as a safer and more easily deployed solution. We expect global demand for energy storage to experience explosive growth, driven by increasing renewable energy penetration and declining storage system costs.

So investing in the energy storage business in line with Albert in that region.

And it has helped us build a long term competitive advantage as a leading enterprise in the PV sector. We possesses long established advantages E channels branded reputation and customer resources.

Speaker #2: This once again validates our strategic decision to invest in the energy storage business, in line with our industry trends. It has helped us build a long-term competitive advantage.

Enabling us to provide a local life west of solar plus storage solution on the manufacturing side. We currently have 12 gigawatt hour of a pack of capacity and a five eight gigawatt hour of battery cell capacity and a continuous and Eaton pool product formats through self developed the technology.

Speaker #2: In the PV sector, we, as a leading enterprise, possess long-established advantages in channels, brand reputation, and customer resources, enabling us to provide localized, one-stop solar-plus-storage solutions.

Speaker #2: On the manufacturing side, we currently have 12 gigawatt-hours of pack capacity and 5 gigawatt-hours of battery cell capacity, and we continuously improve product performance through self-developed technological breakthroughs.

Apologies cough breakthroughs on the market side, we focus on high margin overseas markets, particularly utility scale and industry and the commercial project, although the naval research cycles are relatively long demos.

Operator: Gross margin was 7.3%. The sequential improvement was mainly due to a lower unit cost product sold, and the year-over-year decrease was mainly due to the decrease in ASP of solar modules. Total operating expenses were RMB 363 million, at 36% sequentially, and down 32% over a year. The sequential decrease increase was primarily due to an increase in the impairment of long-lived assets, while the year-over-year decrease was mainly due to a decrease in shipping costs of solar module shipment decrease and an average freight rate decline during the third quarter this year. Total operating expenses accounted for 16% of total revenues, compared to 10.6% in the second quarter and 15.4% in the third quarter last year. Operating loss margin was 8.7%, compared with operating loss margin of 7.7% in the second quarter this year and operating profit margin of 0.3% in the second quarter last year.

Demand remains strong.

Speaker #2: On the market side, we focus on high-margin overseas markets, particularly utility-scale and industrial and commercial projects. Although delivery cycle times are relatively long, demand remains strong, providing stable and sustainable growth momentum for the company's energy storage business.

Provide these civil and a sustainable growth momentum for the company's energy storage business.

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Speaker #3: 根据来看，全球供应链正在加快重塑供需平衡逐渐改善。随着技术的升级，推动行业高质量的发展，高功率、高价值的产品市场份额将逐渐扩大，成为价格的引领者。随着招投标市场竞争更加注重技术能力和长期可靠性等综合能力好的头部企业，银行融资等资源也正向头部企业集中龙头份额有望进一步的提升。凭借强大的技术能力、长期的可靠性，以及我们关注一体化业务的全球多元化，我们的竞争力将进一步增强，并有望在行业的下一轮上升周期中受益。

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That's useful somebody's home. She took her thought she did you have a bunch where you do what you are trying to avoid that.

He was only done Singapore somehow being you want that you get a shot you look sometimes which is all fully.

In summary, the global Slide 10, as a recipient of the balance between flight and Mount is gradually improving as technological upgrades accelerating industry high quality development the market share of the high power and high value products will continue to expand and to become a dominant force in market pricing.

Speaker #2: In

Speaker #2: In summary, the global supply chain is recovering, and the balance between supply and demand is gradually improving. As technological upgrades accelerate industry high-quality development, the market share of high-power and high-value products will continue to expand and become a dominant force in market pricing.

Market competition, particularly in projects, defeating increasingly favors leading enterprises that demonstrates strong technology called <unk> capabilities and the long term reliability resources, such as bank financing also concentrating to world leading enterprises further expanding their market share.

Operator: Moving to the balance sheet, at the end of the third quarter, our cash and cash equivalents were RMB 3.3 billion compared with RMB 3.4 billion at the end of the second quarter of 2025 and RMB 3.2 billion at the end of the third quarter of 2024. Air turnover days were 105 days compared with 97 days in the second quarter. Inventory turnover days were 90 days compared with 66 days in the second quarter this year. At the end of the third quarter, total debt was RMB 6.4 billion compared to RMB 6.7 billion at the end of the second quarter. Net debt was RMB 3.1 billion compared with RMB 3.3 billion at the end of the second quarter this year. Debt conditions improved sequentially. Let me go into more details of the second quarter. Total revenue was RMB 2.51 billion, up 30% sequentially, and down 25% year over year.

Speaker #2: As market competition, particularly in project bidding, increasingly favors leading enterprises that demonstrate strong technological capabilities and long-term reliability, resources such as bank financing are also concentrating toward leading enterprises.

That strong technological capabilities long term reliability and global diversification of our energy storage business, we are well positioned to further strengthen our competitiveness and benefit from the industry's next the afterwards the cycle to check what's out there Shimon you hired us just slightly boots.

Speaker #2: Further strengthening our market share, with strong technological capabilities, long-term reliability, and global diversification of our energy storage business, we are well-positioned to enhance our competitiveness and benefit from the industry's next upward cycle.

George Hill, Ooh, Ooh, Egypt, Mi treaties with job on lingo appointing about yourself about the you talked about Whatsapp I'll go with Nokia and Virginia, Bob with a bias towards a human you shall not do you have any telephone books without Egypt, Kimball job that much with them fishing xing them, yet she's chances on that quite yet soil or magnitude sort of your total junkie booties untoward.

Speaker #3: 近期国家对新能源行业的支持力度持续加强，15规划意见明确提出加快能源供应端与消费端的低碳化。国家发改委能源局近期发布了关于促进新能源消纳与电力调控的指导意见。进一步加强了储能在新型能源体系建设中的关键作用。我们预期这些措施将进一步提升中国新能源行业的竞争力，推动行业长期回归到健康、合理的发展轨迹。

I'm going to get higher that doesn't mean, they don't have great all chip called Cody, thus far though part of which is now 15 five year plan proposes to accelerating the decarbonization of both the Ana just block and the consumption sectors, the National development and Reform Commission and DRC and the National Energy Administration.

So 88 have also recently issued guidance on promoting renewable energy integration and a power system regulation further emphasize the critical role of energy storage in the construction of a new energy.

Speaker #2: The 15th Five-Year Plan proposed accelerating the decarbonization of both the energy supply and consumption sectors. The National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) have also recently issued guidance on promoting renewable energy integration and power system regulation.

Operator: The sequential increase was primarily due to an increase in the solar module shipments, while the year-over-year decrease was mainly due to a decrease in the ASP of solar modules. Gross margin was 2.9%. The sequential improvement was mainly due to a lower unit cost of product sold, while the year-over-year decrease was mainly due to the decrease in the ASP of modules. Total operating expenses were RMB 266 million, down 24% sequentially and 50% year over year. The sequential decrease was mainly due to the reduced expected credit loss expense in the second quarter, while the year-over-year decrease was mainly due to three points: a decrease in the impairment of long-lived assets, reduced expected credit loss expenses, and decreased shipping costs as the average freight rate declined during the second quarter this year.

We expect that these matters will further strengthen the competitiveness of China's renewable energy sector and the steel industry back onto a healthy and a rational development path.

Speaker #2: Further emphasizing the critical role of energy storage in the construction of a new energy system, we expect these matters will further strengthen the competitiveness of China's renewable energy sector and steer the industry back onto a healthy and rational development path.

How much would you want to chime, Kenya, well my job to do.

Sure sure sure how you got to about both of them, but you also heard a consultative only true job got Showtime in that sense. It goes off wholesome Ginger you can do whether it's into the fall.

Speaker #3: 展望四季度及全年，我们将积极持续响应行业高质量发展的要求，合理控制开工率，聚焦高效产能的升级改造。同时积极应对海外的政策的变化，保障对客户的持续可持续供应。我们也会不断强化在技术创新和全球化方面的竞争优势，实现规模和利润的平衡，巩固龙头地位。2025年全年还组建电池硅片的总出货量预计将在85个GW到100个GW，全年储能出货预计在6个GW。

Hopefully that's the street, so should be calling it a one year old.

Well, Doug how objects, usually pricing potential wildfire that things like yours should have way more of a need end up paying out for long part D. With I think I was in.

Kenya Hudson, just yet because we've had a strong portfolio of future job, but also get to I'll call you back.

I've got two one.

Tranche, one and so what you choose to.

Sure.

Looking forward to the fourth quarter and full year, we will continue to actively respond to the industry for a rational developments I mentioned, Russia, let them move oil production levels and focusing on upgrading and transforming high efficiency capacity at the same time, we will proactively adapted to changes.

Operator: Total operating expenses accounted for 10.6% of total revenues compared to 18.1% in the first quarter of 2025 and 16.9% in the second quarter of 2024. Operating loss margin was 7.7% compared to 20.7% in the first quarter this year and 4.7% in the second quarter last year. Moving to the balance sheet, at the end of the second quarter, our cash and cash equivalents were RMB 3.4 billion compared with RMB 3.77 billion at the end of the first quarter this year and RMB 1.9 billion at the end of the second quarter last year. Air turnover days were 97 days compared with 111 days in the first quarter this year. Inventory turnover days were 66 days compared to 84 days in the first quarter. Our operating efficiency is improving.

Speaker #2: Looking forward to the fourth quarter and the full year, we will continue to actively respond to the industry's call for rational development by maintaining reasonable production levels and focusing on upgrading and transforming high-efficiency capacity.

These policies to ensure sustainable supply of for our customers, we will keep strengthening our competitive advantages in technology and global operations achieved a balance between scale and the profitability, while consolidated our industry, leading position is that the total shipments including solar module.

Speaker #2: At the same time, we will proactively adapt to changes in overseas policies to ensure sustainable supply for our customers. We will keep strengthening our competitive advantages in technology and global operations, achieve a balance between scale and profitability, while consolidating our industry-leading position.

Sales in our wafers to be between 85 Gigawatts to 500 Gigawatts for the four year after 2025 and yeah, that's shipments to be picked up.

Six gigawatts hour for the four years 25.

Speaker #2: We expect total shipments, including solar modules, cells, and wafers, to be between 85 gigawatts and 100 gigawatts for the four years of 2025, and ESS shipments to be 6 gigawatt-hours for the four years.

Thank you Missy.

Probably both.

One five gigawatt with module shipments accounting for 93%.

By the end of support.

The first module manufacturer in the industry towards Q2.

Speaker #4: Thank you, Mingxing. Total shipments were 21.5 gigawatts in the third quarter, with modular shipments accounting for 93%. By the end of the third quarter, we became the first modular manufacturer in the industry to achieve cumulative global modular shipments of 370 gigawatts, with total cumulative shipments of the titanium series surpassing 200 gigawatts.

Global shipments of 370 Gigawatts.

Operator: At the end of the second quarter, total debt was RMB 6.7 billion compared to RMB 6.4 billion at the end of the first quarter. Net debt was RMB 33.3 billion compared to RMB 2.6 billion at the end of the first quarter this year. This concludes our prepared remarks. We are now happy to take your questions. Operator, please proceed.

With total.

Shifting gears.

The approximate 200 gigawatt.

So best series in.

Q3.

In terms of geographic mix in the third quarter, we focused on high value overseas markets with shipments accounting for over 65% achieving strong growth in Asia Pacific emerging markets and Europe.

Speaker #4: The best-selling modular series in history. In terms of geographic mix in the third quarter, we focused on high-value overseas markets, with shipments accounting for over 65%, achieving strong growth in Asia Pacific, emerging markets, and Europe.

Stella Wang: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Your first question comes from Philip Shen with Roth Capital Partners.

Shipments to the U S. We're near the one three gigawatt in the third quarter doubled sequentially.

Against the backdrop, so you've actually seen marketing report customer demand for high power products continues to rise.

Speaker #4: Shipments to the U.S. were nearly 1.3 gigawatts in the third quarter, doubling sequentially. Against the backdrop of electricity market reform, customer demand for high-power products continues to rise.

A high powered by the new three playoff series with the Scottish attitude rates over 85%.

Philip Shen: Hi, everyone. Thank you for taking my questions. First one's on your gross margins. Can you share some color on what you see as the difference between yours and Canadian Solar's? They reported recently 15%. You guys have Q3 gross margins at about 7%. What was the main driver, you think, for that underperformance? Can you provide some color on the storage and solar gross margin difference? Finally, what do you think margins look like for Q4? Thanks.

No not at all.

This can generate stable electricity derisking the cloudy.

Cloudy weather.

Speaker #4: Our high-power titanium 3.0 series, with its specialty rate of 85% and excellent low-light performance, can generate stable electricity during storms, dust, and cloudy weather, effectively extending power generation hours.

Actively extending power generation hours.

At the same time.

Market environment with increasing volatility in the electricity spot prices.

Power generation performers are the newest three zero enables more power generation to repeat.

Speaker #4: At the same time, in a market environment with increasing volatility in electricity supply prices, the outstanding power generation performance of Titanium 3.0 enables more power generation during peak price periods in the morning and evening.

In the morning.

Great Hi, viewed as a more desirable reinsurance book client.

According to our Al Gore test data in Germany, China, and the localized condition such as Amdocs.

Charlie Cao: Thanks, Philip. I think compared to our peer, particularly Canadian Solar, the gross margin difference is the different revenue contribution from the energy storage business. If you look at Jinko quarter by quarter, we did improve gross margin dramatically. It's coming from the majority of the module business. For the energy storage sectors, we did want to have a very, very positive update, I think, in the prepared remarks of Chairman Li. We think our energy storage business is ready for the dramatic growth in next year, 2026. We are expecting significant revenue contributions and gross margin expansions. The storage is really in supply shortage. This year, we shipped around 6 GWh shipments. Next year, we expect to double, at least double.

Revenues achieved.

Speaker #4: Creating higher yield and more reliable returns for clients. According to our outward field test data, in Chengdu, China, under low-life conditions such as storms and dust, titanium achieves a 7.2% gain compared to BC products. In Kagoshima, Japan, titanium shows a 10.79% yield again over BC products in low-life conditions.

7.2% again compared with PC products.

In chronic oshima, Japan has a new shows 10, 79%.

Or do you see for dogs in low light conditions.

In the third quarter, we delivered some firepower.

Terry just wanted to use.

Premium compared to conventional products.

We expect our hydropower.

As an industry.

Speaker #4: In the third quarter, we delivered some high-power products that carry one to two US strength premium compared to conventional products. We expect our high-power titanium 3.0 products, with a maximum power of up to 670 watt-peak, to be produced on a large scale next year.

And that's the most powerful.

671 can.

Can be produced.

A large scale.

Further strengthening our competitiveness on the prototypes.

We once again top as a TV test.

Five Q3 morning, Chad.

Visibility reported with Triple a review thanks to our solid operational capabilities outstanding technology.

Speaker #4: Further strengthening our competitiveness on the product side, we once again noted that the PB Test 2025 Q3 module pack bankability report received an AAA rating. This is a testament to our solid operational capabilities, outstanding technological innovation, and strong recognition from global customers.

Innovation and strong resignation from global customers as.

That's one of the few into.

Prices continued statement and talk to your credit worthiness.

Now let me quote.

In the global PV industry.

Charlie Cao: In terms of revenue recognition, it's a little bit different because the revenue is recognized for the shipments with the final acceptance. It's a little bit delayed, one quarter to two quarters. For the energy storage business, the gross margin is at a decent level. We expect at least 15% to 20% gross margin. Looking forward, particularly for the ESS business out of China, we target 70% to 80% ESS business next year. In terms of revenue contribution from the energy storage business, we expect 10% to 15%. I mean, the revenue from ESS business compared to the total revenues of Jinko next year. It's a very—we are actually—we think our business is shifting from purely module business to module plus ESS next year.

And the last the latest release of <unk>.

Speaker #4: As one of the few enterprises to continuously maintain top-tier credit ratings and technological strength in the global PV industry, in the latest release of the BNEF Energy Storage Tier 1 list for Q4 2025, we were recognized as a Tier 1 energy storage provider for the seventh consecutive quarter.

Energy storage tier one list.

For 2025.

We were recognized as tier one energy storage provider for the service.

Okay.

Quarter.

Our continuous efforts in sustainable development.

Our international reputation risk piece of it.

And the reason.

<unk>.

We were upgraded to AA rating.

Speaker #4: Our continuous efforts in sustainable development have also earned international recognition repeatedly. In the recent MSCI ESG meeting, we were upgraded to an A rating.

Maintaining our position as a top tier performers in the global beauty industry.

Additionally.

And on the Tcf score continues to improve.

The score rising significantly to 78.

Speaker #4: Maintaining our position in the top tier of ESG performers in the global PB industry, our S&P CSA score continues to improve from 2024, rising significantly to 78.

Far ahead of the industry.

On the demand side, we expect the global PV demand to slightly contract input because it suits.

In China due to the improvement implementation of policy reform.

Speaker #4: Far ahead of the industry. On the demand side, we expect global PB demand to slightly contract in 2026. In China, due to the implementation of policy reform 136, the pace of carrying out the 15th Five-Year Plan, as well as industry self-discipline and anti-involution measures, demand is expected to slightly decrease year over year in 2026.

136.

Philip Shen: Great, Charlie. Thank you very much for the color. Can you share also a little bit more color on your view? You've given us some color on the storage market. You shared that next year could be 6 gigawatt-hours. What might the geographic shipment mix be for 2026? How much to the US, how much to China, and then maybe Europe and others? Thanks.

The pace of carry out 15, five year plan as well as industry self discipline.

<unk> ventures.

<unk> expenses slightly decreased year over year is gonna be conducive.

Markets outside of China are generally expected to remain healthy.

In the mid to long term to Earth in power at the amount of a from AI data center combined with most of the country's commitment to reduce poverty in submission withdrawing described growth in this global deployment of clean energy and the new res infrastructure over the next three to five years.

Charlie Cao: Yeah, yeah. This year is 6 GWh. Next year is double. Okay. That is the total volume. In terms of geographical distributions and non-China, roughly we think 70% to 80%, including the United States. The United States, we are in discussion with a lot of potential customers, and it's developing. We believe step by step, we are getting more and more orders from the US. We are getting a lot—we have strong pipelines, particularly, I think, from Europe, Latin America, and Asia-Pacific.

Speaker #4: Markets outside China remain healthy. In the mid to long term, the urgent power demand from AI data centers, combined with most countries' commitment to reduce carbon emissions, will jointly drive growth in the global deployment of clean energy and a new grid infrastructure over the next three to five years.

The information office of State Council recently released a white paper of China actually on a carbon PK and other carbon neutrality.

Physical Sciences energy storage is a key support for building a new type of power system on the animal space execute actively deep gratitude to the renewable energy plus energy storage solutions.

Speaker #4: The Information Office of the State Council recently released a white paper on China's action regarding carbon peaking and carbon neutrality. It emphasizes that energy storage is a key support for building a new type of power system and advocates for the active development of renewable energy plus energy storage solutions.

And we are already seeing some texture is deploying co located or nearby sort of storage as their data centers to meet the rapidly growing electricity needs.

Philip Shen: Got it. Okay. Great. Thank you. Shifting over to one more question here on the foreign entity of concern for the US, FEOC. Can you help us understand? You plan to—you have a big business shipping US—sorry, shipping solar modules to the US. Now you plan to ship batteries also to the US. Can you help us understand how you plan to comply with foreign entity of concern requirements for the US market? Thanks.

We believe renewable energy plus energy storage has become invisible.

Speaker #4: In the United States, we are already seeing some tech giants deploying co-located or nearby solar plus storage at their data centers to meet rapidly growing electricity needs.

Celebrating scripts.

We remain optimistic about the long term prospects of the U S market.

Speaker #4: We believe renewable energy plus energy storage has become an invisible and accelerating trade. We remain optimistic about the long-term prospects of the U.S. market.

Although trade policies imposed certain constraints on the manufacturing side, we have taken proactive measures and Macy's early strategic deployment, adjusting our manufacturing and supply chain in response to the policy changes too.

Speaker #4: Although trade policies impose certain constraints on the manufacturing side, we have taken proactive measures and made early strategic deployments, adjusting our manufacturing and supply chains in response to policy changes.

Charlie Cao: Yeah. Looking for the next year, we do not believe there is a lot of kind of impact, negative impact from the FEOC, let's say OBBV compliance. We are seeing a lot of safe harbor projects, particularly for the solar plus some storage projects. We committed to, from long term, and I think we reshape our supply chain globally, including—we are exploring options for our solar module facilities in Florida. We think from the long term, there is going to be demand for both FEOC and non-FEOC. We are in the—if there is some kind of development, particularly for transforming our solar module facilities in the United States to the non-FEOC entities, we will let the investor know. We have been in the process of discussion with potential investors.

To provide a U S customers with long term stable and reliable solutions.

We are confident that leveraging off of advantage in technology innovation hydropower production.

Global network, we can continue to satisfy our global clients be mindful clean safe high efficiency and the reliability integration of solar and storage solutions.

Speaker #4: To provide U.S. customers with long-term, stable, and reliable solutions, we are confident that by leveraging our advantages in technology innovation, high-power products, and global network, we can continue to satisfy our global clients' demand for clean, safe, high-efficiency, and reliable integrated solar and storage solutions.

We will also continue to improve our competitiveness in the local markets.

Thank you Regina.

<unk>, that's our focus on high performance products and the high value markets as.

Speaker #4: We will also continue to improve our competitiveness in global markets.

As well as our efforts in cost and.

And expenses control.

Deliberate steadily.

Speaker #1: Thank

Speaker #1: You, Jenner. We are pleased with the markets. Our focus on high-performance products and high-value markets, as well as our efforts in cost and expense control, have delivered steadily improved financial results.

Proved financial results.

Gross profit margin turned positive in the second quarter and continued to improve by four four percentage points in the third quarter.

Net loss and adjusted net loss narrowed sequentially four to come.

Speaker #1: Gross profit margin turned positive in the second quarter and continued to improve by 4.4 percentage points in the third quarter. Net loss and adjusted net loss narrowed sequentially for two consecutive quarters.

16 quarters.

Operating cash flow was.

340 million in the third quarter, improving significantly quarter over quarter.

Philip Shen: Got it. Okay. Thank you, Charlie. I'll pass it on.

Charlie Cao: Welcome.

Operating cash flow is expected to be positive for the full year.

Stella Wang: Our next question comes from Charlie Cao with Jefferies.

Speaker #1: Operating cash flow was $340 million in the third quarter, improving significantly quarter over quarter. Operating cash flow is expected to be positive for the full year 2025.

25.

Moving to the details in the third quarter.

Alan Lau: Hello. This is Alan from Jefferies. Thanks for taking my question. My first question is about the ESS business. Would like to know if there's any discussion with any of the AI data centers or hyperscaler clients, and what type of demand are they requiring? Are they more like two to four hours of good capability compatible demand, or it's more like even longer hours of storage requirement? Thank you.

Total revenue was 2.27 billion.

Some 10 percentage sequentially.

34% year over year.

Speaker #1: Moving to the details in the third quarter, total revenue was $2.27 billion, down 10% sequentially and 34% year-over-year. The sequential decrease was mainly due to a decrease in solar module shipments, and the year-over-year decrease was primarily due to a decrease in the average selling price of solar modules.

Sequential decrease was mainly due to a decrease in our solar module shipments.

On a year over year decrease was primarily due to a decrease in average selling price of solar modules gross margin was seven 3%.

The improvement was mainly due to a lower unit cost product sold.

Charlie Cao: Yeah. We think the AI-driven data center is going to put a lot of demands for the global electricities from long term. Our ESS team is in discussion with potential pipelines for the data center, including US, Europe, and China. It's still in the progress, and we believe we are able to reach a significant milestone early next year.

On a year year decrease was mainly due to a decrease in the ASP of solar modules.

Speaker #1: Gross margin was 7.3 percent. The sequential improvement was mainly due to a lower unit cost product sold. And year-over-year decrease was mainly due to the decrease in ASP of solar modules.

Total operating expenses.

With 363 meeting.

I'm sorry.

36% sequentially and down <unk>, 2% over a year.

Speaker #1: Total operating expenses were $363 million, up 36 percent sequentially and down 32 percent year-over-year. The sequential increase was primarily due to an increase in the impairment of long-lived assets, while the year-over-year decrease was mainly due to a reduction in shipping costs for solar module shipments and an average freight rate decline during the third quarter this year.

The sequential decrease increase was primarily due to an increase in the impairment of long lived assets.

The year over year decrease was mainly due to a decrease in shipping cost.

Solar module shipment decrease.

Alan Lau: I see. Clear. Thanks. In relation to the geographical breakdown, we'd like to know if the gross margin of ESS is similar across the regions, or it should be higher in Europe or US? How do you see the margins in different regions that you operate?

And average freight rates declined during the third quarter of this year.

Total operating expenses accounted for 16% of total revenues compared to 10, 6% in the second quarter.

And 15, 4% in the third quarter.

Last two years.

Speaker #1: Total operating expenses accounted for 16 percent of total revenues, compared to 10.6 percent in Q2 and 15.4 percent in Q3.

Operating loss margin was eight 7% compared with operating loss margin of standpoint at 10% in the second quarter this year and operating profit margin.

Charlie Cao: Oh, you mean the ESS margin, different regions, right?

Alan Lau: Yeah.

Charlie Cao: Yeah. It's depending on different markets, and China is still a little bit low, but I think it's recovering a little bit. ESS is very competitive in China. Europe and US, we think that it still is a decent gross margin. The Middle East is a little bit low. I think China and Middle East is ESS. The pricing, the competitiveness, and the margin is relatively low to other regions. We think it's still very healthy and business in the next two years.

Speaker #1: Last year, the operating loss margin was 8.7 percent, compared with an operating loss margin of 7.7 percent in the second quarter this year, and an operating profit margin of 0.3 percent in the second quarter last year.

Oh, you were appointed 3% in the second quarter last year.

Moving to the balance sheet.

At the end of third quarter, our cash cash equivalents.

With three point.

3 billion compared with 3.4.

All bidding and the end of the second quarter of.

Speaker #1: Moving to the balance sheet. At the end of the third quarter, our cash and cash equivalents were $3.3 billion, compared with $3.4 billion at the end of the second quarter of '25 and $3.2 billion at the end of the third quarter of '24.

25, and $3 2 billion at the end of quarter.

Plentiful.

Yeah.

After a number of days.

Andrey five days compared with 97 days in the second quarter.

Inventory turnover days.

We're 90 days compared with 66 days in the second quarter this year.

Alan Lau: Yep. Would like to know on the cost side of ESS because I've noticed that the upstream raw materials are all—the cost of raw materials are increasing or surging. Any plans to lock in any raw materials, or how is your view on different raw materials like batteries, or even more upstream battery materials like lithium carbon, etc.?

Speaker #1: Air turnover days were 105 days compared with 97 days in the second quarter; inventory turnover days were 90 days compared with 66 days in the second quarter this year.

At end of third quarter total debt.

Six 4 billion compared to.

$6 7 billion at the end of second quarter.

Let's say.

<unk> was $3 1 billion compared with 3.3 billion at the end of second quarter.

Speaker #1: At the end of the third quarter, total debt was $6.4 billion compared to $6.7 billion at the end of the second quarter; net debt was $3.1 billion, compared with $3.3 billion at the end of the second quarter this year.

This year.

But that conditions improve sequentially.

Let me go into more details of the second quarter.

Charlie Cao: Yeah. Yeah. Yeah. Because the strong demand is the materials are likely in the upward work. Firstly, we have 5 GW in battery capacities, which put us a little bit at a vantage. The second one, we partner with key materials and suppliers. The second one, when we negotiate a contract, we did anticipate some kind of material cost upwards. So it's a combination. I think it's a little bit challenged, but we think we can manage and how to minimize the impact of the material, the pricing.

Total revenue.

Well, it's 2.51 billion.

Up circa 8% sequentially and down 25 year over year.

Speaker #1: Debt conditions improved sequentially. Let me go into more details of the second quarter. Total revenue was $2.51 billion, up 30 percent sequentially and down 25 percent year-over-year.

The sequential increase was primarily due to increase in the solar module shipments for the year.

Year over year decrease was mainly due to a decrease in ASP of solar modules.

Gross margin was two 9%.

Speaker #1: The sequential increase was primarily due to an increase in solar module shipments, while the year-over-year decrease was mainly due to a decrease in the ASP of solar modules.

The sequential improvement was.

Mainly due to a lower unit cost of products sold.

While year on year decrease was mainly due to the decrease in the ASP.

Jos.

Speaker #1: Gross margin was 2.9 percent. The sequential improvement was mainly due to a lower unit cost of products sold, while the year-over-year decrease was primarily due to the decrease in ASP of modules.

Total operating expenses.

266 million.

Tom plentiful.

Preventive sequentially and 15% year over year.

Alan Lau: I see. I think my next question is about the demand on the solar module market. How do you see the demand growth in next year for maybe both solar and ESS? What is the growth rate you see?

The decrease was mainly.

Speaker #1: Total operating expenses were $266 million, down 24 percent sequentially and 50 percent year-over-year. The sequential decrease was mainly due to the reduced expected credit loss expense in the second quarter, while the year-over-year decrease was mainly due to 3.

Due to the reduced expected credit loss expense in the second quarter, while the year over year decrease or how they do two or three points.

I'd be crazy and the impairment of long lived assets reduce expected credit loss expenses.

And decreased shipping cost as the average frac rates declined during the second quarter of this year.

Charlie Cao: Yeah. For the demand side, definitely we should look in separately for both for PV and BESS, right? For PV side, I think we are, in a conservative way, expecting more or less a flat year in 2026 versus 2025. The main reason is because China demand, we believe, will have a drop compared with 2025, which, because the weight of China demand is so high in the global demand, drives even with the other markets booming or other markets' growth. We still expect the total demand of the globe in the PV industry for next year will be more or less a flat year. However, when we look into the BESS, it is in a different scenario, right? With more and more renewable installed, the grid needs more security for the BESS contribution. Definitely, we are seeing a sharp increase for the BESS side.

Total operating expenses of comparable pinpoint 6% of total revenues compared to 18, 1% in the first quarter up 25.

Speaker #1: A decrease in the impairment of long-lived assets reduced expected credit loss expenses and decreased shipping costs, as the average freight rate declined during the second quarter this year.

A 16, 9% in the second quarter of 'twenty.

Speaker #1: Total operating expenses accounted for 10.6 percent of total revenues, compared to 18.1 percent in the first quarter of 2025 and 16.9 percent in the second quarter of 2024.

24.

Operating loss margin.

Seven 7% compared to 27% in the fourth quarter.

This year and four 7% in the second quarter last year.

Moving to the balance sheet.

Speaker #1: Operating loss margin was 7.7 percent, compared to 20.7 percent in the first quarter this year and 4.7 percent in the second quarter last year.

At the end of the second quarter, our cash and cash equivalents.

Yes.

Three point fulfilling compared with three points to seven 7 billion at the end of the first quarter.

Speaker #1: Moving to the balance sheet, at the end of the second quarter, our cash and cash equivalents was $3.4 billion compared with $3.77 billion at the end of the first quarter this year and $1.9 billion at the end of the second quarter last year.

This year.

One 9 billion at the end of second quarter last year.

Yeah, it's a number of days.

97 days compared with 111 days in the first quarter.

This year.

Inventory turnover days was 66 days compared to 84 days in the first quarter.

Charlie Cao: That's why from the BESS, we are still keeping a domestic opinion or expectation for next year's installation. If we need to quantize that, we think it will be at least a 25% increase for the BESS year over year.

Speaker #1: Air turnover days were 97 days, compared with 111 days in the first quarter this year. Inventory turnover days were 66 days, compared to 84 days in the first quarter.

Our operating efficiency is improving.

At the end of second quarter total debt was six point.

Seven.

<unk> was $6 4 billion at the end of the first quarter Nice airport.

Alan Lau: I see. Thanks, Gener. Would like to know what type of installation in China are you looking at? Because there are different numbers floating around. Are you looking at low 200s or even below 200 GW in China?

So the sorry.

3.3 billion compared to $2 6 billion at the end of the first quarter this year.

Speaker #1: Our operating efficiency is improving. At the end of the second quarter, total debt was $6.7 billion compared to $6.4 billion at the end of the first quarter.

This concludes our prepared remarks, well now happy to take your questions. Operator. Please proceed.

Speaker #1: Net debt was $33.3 billion compared to $2.6 billion at the end of the first quarter this year. This concludes our prepared remarks. We are now happy to take your questions.

Charlie Cao: I'm not that conservative for China because recently, I visited a lot of our distributors and even installers in China in all the different provinces. I think most of them are still keeping an optimistic view for next year. Having said all those, I believe that it will be around, let's say, module-wise, it will be around mid-200, let's say around 250 about. If we look into the grid connection numbers, it should be somewhere around low-200s.

In Q excuse me to ask a question. Please press star one on your telephone and wait for your name to be announced.

If you wish to cancel your request please press star two.

If you're on a speakerphone please pick up the handset to ask your question.

Speaker #1: Operator, please proceed.

Speaker #2: Thank you. If you wish to ask a question, please press *1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press *2.

Your first question comes from Philip Shen with Roth Capital Partners.

Hi, everyone. Thank you for taking my questions first one is on your gross margins.

Speaker #2: If you are on a speakerphone, please pick up the handset to ask your question. Your first question comes from Philip Shen with Roth Capital.

Can you share some color on where do you see as the key.

Difference between yours and <unk>.

Good evening soldiers. They reported recently at 15% you guys have Q3 gross margins at about 7% and Ah Yeah. What was the main driver or do you think for that underperformance and then can you provide some color on.

Speaker #2: Partners. Hi, everyone.

Speaker #3: Thank you for taking my questions. The first one's on your gross margins. Can you share some color on what you see as the difference between yours and Canadian Solar's?

Alan Lau: Okay. That's very clear. Thanks a lot. I think my last question is on the buyback. Would like to know if the company would start buyback after the blackout privileges basically is resolved, and how is the pace of the buyback will look like? Thank you.

Speaker #3: They reported recently 15 percent. You guys have Q3 gross margins at about 7 percent. What do you think was the main driver for that underperformance?

The storage and solar gross margin difference.

And then finally, what do you think margins look like for Q4. Thanks.

Oh that sounds familiar Brenda I think you know compared to our peers, particularly the Minnesota.

Speaker #3: And then, can you provide some color on the storage and solar gross margin difference? And then finally, what do you think margins look like for Q4?

Charlie Cao: We monetize 3% each year. I think the end of October, and we're in the process to get money out of China after the regulatory approval. We have paid withholding tax, and we expect to get the money by the end of this month, and very soon. For the shareholder returns, we commit at least $100 million a year. We had dividend earlier this year. We bought some shares, certain shares. I think last quarter in the middle of this year, after the window, after the earning release. We plan to purchase a share out of the end of the year.

The gross margin differences.

You know the different revenue contribution.

Speaker #3: Thanks.

Im sorry spiritedness.

Speaker #4: Well, thanks, Philip. I think compared to our peer, particularly Canadian Solar, the gross margin difference is due to the different revenue contribution from the energy storage business.

But if you look on the Genco, you know quarter by quarter, we do to improve gross margin.

Magic of it's coming from the majority of the.

Module business.

For the energy.

Speaker #4: And if you look at Jinko, quarter by quarter, we did improve gross margin dramatically. It's coming from the majority of the module business.

The storage sectors, we redeemed a one two how are you know wherever it's hard to call.

So I assume you mean.

Fair remarks, so chairman need.

Speaker #4: But for the energy storage sector, we did want to have a very, very positive update. I think in the prepared remarks of Chairman Lee, we think our energy storage business is really positioned for dramatic growth in the next year, 2026.

And where you think you know our energy.

The storage business is really well for the you know dramatic there.

To close in the next few years, so needed in six and were expecting significant revenue.

Revenue contributions and the gross margin expansions and.

Alan Lau: Is there how much shares have been purchased, or will the company looking to basically buy all the remaining amount in the buyback program in the remaining one month?

The storage is really as you know.

Supply shortage.

Speaker #4: And we're expecting significant revenue contributions and gross margin expansions. The storage market is really in a supply shortage. This year, we shifted around 6 gigawatt-hours in shipments.

And.

This year with shifts around six gigawatts hours.

Shipments in the next year, we expect to double at least double and in terms of those how many recognizing says.

Charlie Cao: Yes. I think we plan to use the proceeds from the monetization issues as the key funding which is available, and it's around $170 to 180 million. I think depending on how the market moves, we definitely will repurchase the shares by the end of this year. Roughly, I think this year, $100 million, and we had dividend, I think $50 to 60 million. That's our base plan.

It is different because you know the revenue is recognized you know for.

For the Simmons was the final acceptance, it's a little bit delayed one quarter to two quarters.

Speaker #4: And next year, we expect to at least double our revenue. However, revenue recognition is a little bit different because the revenue is recognized for the shipments with final acceptance.

And therefore the.

And the storage business. The gross margin is a decent level we expect at.

At least 15, 15%, 20% gross margin.

Speaker #4: It's a little bit delayed, one quarter to two quarters. For the energy storage business, the gross margin is at a decent level. We expect at least 15% to 20% gross margin and looking forward, particularly for the ESS business out of China.

And.

Looking forward, particularly for the U S S business out of China, and then we target 70% Andy was saying you know the U S. It's been this next year.

In terms of revenue contribution from the <unk>, sorry, the goodness, we expect 10% to 15.

Alan Lau: I see. That's clear.

Charlie Cao: We will.

Alan Lau: Yep.

Charlie Cao: Yes, it's a year-over-year plan, and next year, it's roughly the same plan.

15%.

Speaker #4: Targeting 70% to 80% growth in our ESS business next year, we expect revenue contribution from the energy storage business to be between 10% and 15%.

The depth and the Germany or from you guys to spend there.

Compared to the total revenues.

Alan Lau: I see. That's clear. Thank you. Thanks, Charlie.

<unk> next year, so it's a whereas you know well we are actually every single business is shifting from purely a module business to module plus yes. This next year.

Charlie Cao: Thank you.

Stella Wang: Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. Your next question comes from Rajiv Chaudhri with Sunsara Capital.

Speaker #4: I mean, the revenue from the ESS business compared to the total revenues of Jinko next year. So it's a very, we are actually, we think our business is shifting from purely module business to module plus ESS next year.

Charles Alright, Thank you very much for the color.

Rajiv Chaudhri: Good morning. My first question is regarding your guidance for module shipments for the fourth quarter. It's a very big range, 18 to 33 GW, and you have essentially kept to the same range that you gave for the full year back in the early part of the year. Now we are halfway through the fourth quarter. Could you help us narrow down what the range would be for Q4 for module shipments?

And can you share also a little bit more color on your view.

Given us some color on the storage market you shared that next year it could be six gigawatt hours.

Speaker #4: year.

Speaker #3: Great, Charlie. Thank

Speaker #3: Thank you very much for the color. And can you share also a little more color on your view? You've given us some color on the storage market.

What might be a geographic shouldn't mix be for 2026, and how much to the U S. How much to China, and then maybe Europe and others.

Speaker #3: You shared that next year could be 6 gigawatt hours. What might the geographic shipment mix be for 2026? And how much did the US, how much do China and then maybe Europe and others?

Yeah. Yeah. This year is six Gigawatts of offers on next stop off okay.

Charlie Cao: Yeah. I think we will close to the lower end of the range. I think because of the regulatory requirement, we have to keep that range as before. From the operational level, we believe the lower end of the range is more, let's say, realistic.

The volume in terms of geographical distributions.

China, roughly what do you think 70% 80%.

Speaker #4: Yeah, yeah.

Speaker #4: This year is 6 gigawatts, and next year is double, okay? That is the total volume in terms of geographical distributions. In China, we think roughly 70 to 80 percent, including the United States.

Food in the United States, and the United States, we're arguing discussing with a lot of potential customers and it's a developing in a way we believe.

Step by step, we are getting more and more orders from the U S. But where are you now getting on Oh, we have a strong pipeline, particularly as we can from Europe, Latin America and Asia Pacific.

Rajiv Chaudhri: I see. Related to that, what do you think the global shipments of modules would be for the industry as a whole in 2025?

Speaker #4: And United States, we are in discussion with a lot of potential customers and in developing. And we believe step by step, we are getting more and more orders from US, but we are getting a lot we have a strong pipelines, particularly I think from Europe, Latin America, and Asia Pacific.

Charlie Cao: Well, technically, we believe from the production-wise, we are looking at roughly 700 GW. That's the high-level numbers we are estimating for the whole industry.

Got it okay, great. Thank you shifting over to a one more question here on the foreign entity of concern for the U S. B Ark.

Can you help.

Help us understand how you plan to do you have a big business shipping U S. Schuh, sorry shipping solar modules to the U S.

Speaker #3: Got it. Okay. Great. Thank you. Shifting over to one more question here. On the Foreign Entity of Concern for the US (FIOC), can you help us understand your plan to ship solar modules to the US? You have a big business shipping solar modules to the US.

Rajiv Chaudhri: Do you believe that 700 gigawatts would actually have been shipped out by the industry as well, or that was just the production?

Now you plan to ship.

Adorees also to the U S can you help us understand how you plan to comply with.

Charlie Cao: Well, I think it's more realized to a production closer to the production side, because every company has slightly different ways to calculate or announce their shipment numbers. That's why it's difficult to figure out what's the real shipment number. Production-wise, I think the number is more realistic.

Born entity is concerned our requirements are.

For the U S market.

Speaker #3: Now you plan to ship batteries also to the U.S. Can you help us understand how you plan to comply with foreign entity of concern requirements for the U.S. market?

Yeah, and looking for the next year, we don't believe there's a lot of you know kind of an impact negative impact from the field, but let's say it will be you know combines.

Rajiv Chaudhri: I see. Okay. Moving on to another question relating to CapEx, could you give us the CapEx target for 2025 and also for 2026?

Although you know safe Harbor projects.

Speaker #3: Thanks.

Speaker #4: Yeah. And looking for the next year, we don't believe there's a lot of negative impact from the FIOC, let's say OBBB compliance.

Particularly for the solar plus storage projects.

And are we committed to from long term on the way.

I think as we reshape of our supply chain.

Speaker #4: We are seeing a lot of safe harbor projects, particularly for solar plus some storage projects. We are committed to a long-term strategy, and I think we are shaping our supply chain globally. This includes exploring options for our solar module facilities in Florida. We believe that, in the long term, there will be demand for both FIOC and non-FIOC.

Charlie Cao: It's roughly RMB 5 billion this year and next year. Next year, we begin to have any plan to expand capacity, and it's kind of upgraded to the next generation TOPCon technology. It's going to have significant high-end, high-power output solar modules we are able to provide to our customer next year, roughly 60%. We should go with price premium and relatively good margin contributions next year, quarter over quarter. The capacity for the high-end, upgraded high-end module capacity will be released quarter by quarter.

Globally, and the including and we're exploring options for our you know.

Solar module, if I said it is in Florida.

We think you'll find the long term.

There is going to be you know demand for you know for both Falcon now filled and we are in the.

There is some kind of develop them in particular for <unk>.

Transforming.

Our.

Solar module for Sun. It is in the United States to the mountain felt and it is under way we are left to invest in no by the way.

Speaker #4: And we are, if there is some kind of development, particularly for transforming our solar module facilities in the United States to the non-FIOC entities, and we will let investors know.

We have been in the process too.

The discussion with potential investors.

Got it okay. Thank you Charlie I'll pass it on.

Welcome.

Speaker #4: But we have been in the process to discussion with potential

Your next question comes from LMR with Jefferies.

Speaker #4: investors Got it.

Hello.

Do you have a balance from Jefferies.

Rajiv Chaudhri: Charlie, just to be clear, this year, the CapEx is RMB 5 billion, and next year, it will be flat at RMB 5 billion?

Speaker #3: Okay. Thank you, Charlie. I'll pass it.

My question. So my first question is about our GSS business.

Speaker #3: on. You're

Speaker #4: welcome. Our next question comes from

I would like to know.

Speaker #2: Alema with Jefferies.

Charlie Cao: Yes, roughly. Roughly. Next year, I talk about it. This year, it's a roughly payment of outstanding amount, RMB 5 billion. Next year, we are doing the upgrade. We are doing the upgrade of existing capacity to the next high-level TOPCon capacity. We foresee a lot of strong demands, with higher module price and higher gross margin contributions.

If there's any discussion with any of the AI data center or Hyperscale.

Speaker #5: Hello. This is Alan from Jefferies. Thanks for taking my question. So, my first question is about the ESS business. I would like to know if there's any discussion with any of the AI data centers or hyperscale clients and what type of demand they are requiring?

And what type of.

Meg.

They'd be acquiring like are they more like two to four hours.

Hmm capability compatible with demand or it's more like even longer all west dome storage requirement. Thank you.

Yeah.

When you think of the AI driven data center, you know it's going to.

Speaker #5: Are they more like two to four hours of good capability compatible demand or it's more like even longer hours of storage requirement? Thank

Per ton lot of demand for the global Union says it is from long term and there were.

Rajiv Chaudhri: You made a very interesting point that operating cash flow will be positive in 2025. It looks like you will be generating operating cash flow positive in 2026 as well, and maybe substantially higher than 2025 because the gross margin will be higher. Is that a correct assessment?

Speaker #5: you. Yeah.

Yes, its team facing discussing with potential and pipelines for the.

Speaker #4: We think the AI-driven data center is going to put a lot of demands on the global electricity market in the long term. Our ESS teams are in discussion with potential pipelines for the data center, including in the U.S., Europe, and including China.

Data center.

Good enjoy U S Europe, and including China.

It's still you know it's a you know you know in the progress and the way we believe we are.

<unk> reached a significant milestone early in next year.

Charlie Cao: Yes. Yes. That's right. That's right. We talk about, firstly, I think the catalyst is, first one is ESS storage business next year. We are looking to 10% to 15% revenue contributions from ESS with decent gross margin and positive net profitabilities. The second one is the module business. We have, I think, the most advanced TOPCon upgrade capacities in the industries and developed by ourselves for the technology, which will roughly have 60% shipments of the modules coming from the next generation Jinko developed TOPCon capacities with higher gross margins. We think from the high-level standards of the industry, anti-evolutions taking effect step by step, and the capacity will accelerate, phase out, phase out, and leading by, on top of that, industry-leading self-discipline, control of production volume, and reasonable pricing based on the cost will take further, I think, enforcement.

Yeah.

Okay. Thanks.

Speaker #4: But it's still in progress, and we believe we are able to reach a significant milestone early next year.

Thanks.

So.

In relation to the Oh geographical breakdown.

I would like to know if the gross margin of yes, that's right.

Yes.

Similar across the regions or it should be higher in Europe.

Speaker #5: I see. Clear. Thanks. So, in relation to the geographical breakdown, I would like to know if the gross margin of ESS is similar across the regions or if it should be higher in Europe or the U.S.?

Or like how do you see the margins in different regions that you operate.

Oh, you mean, you, yes, it's Martin you know different right.

Uh huh.

Yeah, no, it's a depending on different market in China.

Speaker #5: How do you see the margins in different regions that you operate?

A little bit low, but I think it's a recovering a little bit yes.

Speaker #4: Oh, you mean the ESS margin different regions, right? Yeah. Yeah.

Yes, it is very competitive in China Europe U S is.

Speaker #5: Yeah.

It's still we think that it's a series of decent gross margin.

Speaker #4: It's dependent on different markets, and China is still a little bit low, but I think it's recovering a little bit. ESS is very competitive in China.

So you know in the middle East a little bit low and I think in China, and whether you're stays yes is the pricing you know the comparator in this.

Speaker #4: But Europe and the U.S. still think that it is a decent gross margin. So, and the middle is a little bit low.

And there's a margin there hasn't been no true on refrigeration, but where.

We think it's a.

It's zero our warehouses.

Speaker #4: East is ESS the pricing, and I think China and Middle competitiveness, and the margin is relatively low compared to other regions. But we think it's still a very healthy business in the next two years.

No business in the next two years.

Yes, I'd like to know on the cost side of E. S. S. I guess.

Notice that the upstream raw materials at war.

Charlie Cao: Combined together, I think the industry is reaching the low point as recovering step by step. Jinko, we are getting ready from the market and product perspective. Plus, we are shifting solar plus ESS story and the business. The basic plan next year, we are trying, we are confident that we are able to navigate the cycles and turn to positive earnings. That's kind of the business plan next year.

Oh, the cost of raw materials like policing or searching.

Speaker #5: Yeah. I would like to know about the cost side of ESS because I've noticed that the upstream raw materials are all increasing or surging in price.

Any plans to locking any raw materials or how has your view on a different raw materials like the batteries or like even more upstream battery material likelihood.

Sure.

Yeah.

Speaker #5: Any plans to lock in any raw materials or how has your view on different raw materials like batteries or even more upstream battery materials like lithium carbonate, etc.?

Yeah.

Because of strong demand in the mature is unlikely in the awkward words.

Firstly, we have five Gigawatts you know.

After its capacities and which put us at the vantage and the second one along with power numbers are key materials and you know.

Speaker #4: Yeah. Yeah. Yeah. Because the strong demand is the material, it is likely in the upper words. Firstly, we have 5 gigawatts of battery capacity, which puts us at an advantage.

Fires and the second one we you know when when we negotiate contracts the way we did anticipate some kind of.

Rajiv Chaudhri: You talked about the premium products and the fact that they've got premium pricing. On the cost side, will your costs for these premium products still be lower than the cost for the standard products this year? In other words, do the costs keep going down even as the price goes up?

Speaker #4: And the second one, we partner with a key materials and suppliers. And the second one, we when we negotiate contract, we did anticipate some kind of material cost upwards.

Material costs upwards.

That combination I think is a little bit of tonnage but.

Uh huh.

Seeing that we can manage and hard to minimize the impacts of the material.

Charlie Cao: Yes. Yes. Initially, by design, the cost is a little bit higher, but a very, very small increase in incremental cost. By the way, our R&D team continued to dive into the details and to try to further improve the cost. Back to your question, I think the high-end products, the cost is a very, very small incremental cost increase at the beginning. We believe over time, our R&D team, with our operational teams, will continue to improve the cost.

And on the pricing.

Speaker #4: combination I think is a little bit challenge, but we think we So the can manage and how to minimize the impact of the material the

I see.

Hum.

Next question is about the seasoning.

On a D.

Our solar module market. So how do you see the demand growth.

Speaker #4: pricing. I

Speaker #5: I see. I think my next question is about the demand on the solar module market. So how do you see the demand growth in the next year for maybe both solar and ESS?

Next year for maybe both solar.

What is the growth rate you see.

Yeah for the demand side are definitely we should looking separately for both for PV and best right. So for the <unk> side. I think we are we are in a conservative way, we are expecting a more or less a flat for the year.

Speaker #5: What is the growth rate you see?

Speaker #4: Yeah, for the demand side, we should definitely look separately at both PV and BES, right? So for the PV side, I think we are, in a conservative way, expecting more or less a flat year in 2026 versus 2025.

26 versus 2025.

The main reason is because China demand you know.

Rajiv Chaudhri: Final question, Charlie. On market share, in the past, in 2023 and 2024, your global market share had gone up to somewhere between 15% and 16% of the global market. This year, it is down a little bit, I guess partly because you have restrained production because of the pricing. Should we expect that your market share next year will go up again and maybe go up a lot more than 16% because the industry itself is consolidating? What do you think the range for next year module shipments could be?

Believe it or have a job compared with 2025, which are which would be of course, a very tough China demand is so high in the global at the mountains, which drive even with the other markets are booming or other markets for growth.

Speaker #4: The main reason is because China demand we believe it will have a job compared with 2025. Which because of weight of China demand is so high in the global demand, so which drive even with the other markets booming or other markets growth, we still expect the total demand of the globe in the PV industry for next year will be more or less flat year.

We still expect the total amount of football in the PV industry for you for next year will it be more or less flat year.

However, when we look into the past.

It is a in a different scenario, where I saw it with a more in a more renewable in star that took raised the need for more security or for the batch contribute seven data we are seeing a sharp increase for the Bath side. So that's why I was formed in the past we are still keeping our optimistic oh.

Speaker #4: However, when we look into the BES, it is in a different scenario, right? So, with more and more renewables installed, the grid needs more security for the BES contribution.

Charlie Cao: The consolidated market share after consolidation of the industry consolidation and the phase-out of capacity, the industry turned into the kind of normal situation. For sure, it's very good for tier-one companies. If you look at the long term, we are confident, and we will continue to penetrate the market here. Next year is still, I think, from the top-down approach. I think China will continue to launch, implement the anti-evolution policies. We do not expect significant shipments increase for the module business. Yes, it's different stories.

Our expectation for next year, she installation if we'd need for quality of life that we think it will be at least 25%.

Speaker #4: Definitely, we are seeing a sharp increase for the BES side. That's why, from the BES, we are still keeping an optimistic opinion or expectation for next year's installation.

Chip increase for the best year over year.

Thank you.

Thanks, Ken.

I would like to know Oh like.

What type of installation in China, Yeah, you're looking at like because they have different numbers floating around.

Speaker #4: If we need to quantize that, we think we'll be at least 25% increase for the BES year over year.

Looking at low two hundreds or even below 200 gigawatt China.

Speaker #5: I see. Thanks, Ghana. I would like to know what type of installation in China you are looking at, because there are different numbers growing around.

I am not that.

Datacom fabricator for China, That'd be course work recently I visited a lot of our distributors and installers in China, you know all the different provinces I think most of them are still keeping our optimistic view for next year. So.

Speaker #5: At low 200s or even below 200 gigawatts, are you looking...

Speaker #5: China? I'm not

Speaker #4: That's conservative for China because when I recently visited a lot of our distributors and even installers in China in all the different provinces, I think most of them are still keeping an optimistic view for next year.

Rajiv Chaudhri: I see. Okay, thank you very much.

Charlie Cao: You're welcome.

Having said all of those.

Stella Wang: Your next question comes from Philip Shen with Roth Capital Partners.

I believe it will be around.

Like I say module wise it will be around mid 200, let's say around 250.

Philip Shen: Yes, thanks for taking my ballpark question. I want to check back in with you in terms of Q4 margin outlook. What kind of solar module ASP could we see in Q4, and then what kind of margin for the overall quarter could we see? Thanks.

About and if we look into the grid connection number it should be somewhere around.

Speaker #4: So, just having said all those, I believe that it will be around, let's say, module-wise, it will be around mid-200s, let's say around 250, about.

Low two hundreds.

Okay.

Alright, Thanks, a lot I think my last question is on your buyback.

Speaker #4: And if we look into the grid connection number, it should be somewhere around the low 200s.

Charlie Cao: We expect relatively stable Q4 versus Q3. The ESS business is contributing more revenues, and we estimate our ESS business in fourth quarter is going to reach positive profitability levels. The contribution is not significant, but next year is a different story that we have talked about. For the module business, we expect relatively stable.

Like to know if the company.

Stock buyback.

After the blackout period.

Basically this without them and.

Pace, though.

Speaker #5: Oh, that's very clear. Thanks a lot. I think my last question is on the buyback. I would like to know if the company would start the buyback after the blackout period, basically after this result, and what the pace of the buyback will look like.

The buyback will look like thank you.

And you know, what we monetize 3% Ishares and vaccine.

Cobra and.

Composites or get the money.

I don't know.

China and after the.

Speaker #5: Thank you.

They're gonna injury, a pool and then we have paid them.

Speaker #4: And we monetize 3%, right, each year. I think the end of October, and we're in the process of getting money out of China.

No withholding tax and we expected, giving the money back.

Philip Shen: Got it. Thanks. Can you talk about module ASPs for Q1 and Q2 of next year? Also, the trajectory for margins as you blend in more battery. Thanks.

In those months.

The first one.

Speaker #4: And after the regulatory approval. And we have paid withholding tax. And we expect to get the money by the end of this month. And very soon.

For the shareholder.

As a shareholder returns.

Where you can meet at least 100 million in restaurants, a year and we had to declare a dividend earlier this year.

Charlie Cao: Yeah. I think it's difficult to share those numbers or estimations right now because what is happening is like some of the key markets, there are still some key or some important policy is upcoming. For example, the US, the guidance of the FEOC or material assistance, or even upcoming 232, which will significantly impact the market prices. Like in China, there are anti-evolution policies, and there's even more rumors coming out regarding the polysilicon, even to the other part of the manufacturing value chain as well. Those changes could significantly change the market price overnight. That's why we believe it's still too early to share our estimation on the prices for next year.

Speaker #4: And for the shareholder returns and we commit at least 100 million US dollars a year. And we had detailed dividend earlier this year. And we bought some shares, certain shares, and I think last quarter in the middle of this year.

And then we start whittling or some Sears certain shears.

And I think in last quarter.

Yeah.

The meadows.

Here in <unk>.

After.

The window after the earnings release.

We plan to try to purchase this year so.

I know this year.

Is Tim like how.

Speaker #4: And after the window, after the earnings release, and we plan to repurchase the share through out of the end of the

How much shares have been purchased or like.

Will the company looking to basically buy all the remaining amount it would be either in the buyback program.

Speaker #4: year.

Meaning what month.

Speaker #5: Is there how

Speaker #5: How many shares have been purchased, or will the company be looking to buy all the remaining shares in the buyback program over the next month?

Yes, and I think we.

We plan to use of proceeds and monetization areas series, the key founding and which is available in the turnaround of one times.

So many many of the U S. So I think we.

Speaker #4: Yes. And I think we plan to use the perceived rise in monetization each year since the key funding and which is available and it's around 100, 70, 80 million US dollars so I think we depending how the market move, but we definitely we will repurchase the shares by the end of this year and roughly I think this year 100 million US dollars and we had declared dividend I think 50, 60 million.

Philip Shen: Okay, John. That makes sense. You talked about the rumors on Poly. Can you give us a little bit more color on that? Thanks.

Depending on how the market moves, but we definitely will be around the purchase of shares by the end of this year.

Roughly I think.

Charlie Cao: I don't have too much more to share based on there's a lot of rumors on the market or on the internet. I don't know what you're referring to.

This year, you know $100 million on that we had to go deeper than that seen in 50 to 60 minutes. So.

Our you know the pace.

Pat.

Philip Shen: Yeah, you mentioned it, so I thought I would try to see if there's more color.

Definitely yes.

Yes, yes.

It's a it's a year.

Charlie Cao: We are not part of the game, so I do not have too much to share with everyone. Thank you for your question.

Speaker #4: So that's our base plan.

Over a year plan underway next year, it's roughly the same path.

Philip Shen: Yep, no problem. Okay, thank you, guys. I'll pass it on.

Okay.

Okay. Thank you thanks Kelly.

Speaker #5: I see. That's clear.

Speaker #4: And we will. Yes.

Okay.

Stella Wang: Your next question comes from Brian Lee with Goldman Sachs.

Speaker #5: Yeah.

Once again, if you wish to ask a question. Please press star one on your telephone Lake their name to be announced your next question comes from Rajeev <unk> with some sorry capital.

Speaker #4: It's a year-over-year plan and next year it's roughly the same plan.

Tyler Bisset: Hey, guys. This is Tyler Bisset for Brian. Thanks for taking our question. Just quick housekeeping question. Can you share what was D&A and CapEx in Q2 and Q3?

Speaker #5: I see. That's clear. Thank you. Thanks.

Speaker #5: Charlie. Thank

Good morning.

Speaker #4: you.

My first question is regarding your guidance for module shipments for the fourth quarter.

Speaker #1: To ask a question, please press star one on your telephone and wait for your name to be announced. Once again, if you wish to be announced, your next question comes from Rajiv Chidari with Samsara Capital.

Charlie Cao: You mean the absolute number or percentage, right? Hello? Hello?

It's a very big range 18 to 33, Gigawatts and thankfully are kept at the same range that you gave for the full year back in the early part of the year, but now we are halfway through the fourth quarter could.

Speaker #6: Good morning. My first question is regarding your guidance for module shipments for the fourth quarter. It's a very big range, 18 to 33 gigawatts.

Tyler Bisset: Yeah, sorry. The actual number.

Charlie Cao: I think in the financial statement, you're going to check out the financial statement, the R&D, and the operating expenses, and we have disclosed quarter by quarter. What would be your key question you want to explore?

Could you help us narrow down what the range would be for Q4 for module shipments.

Speaker #6: And you have essentially kept to the same range that you gave for the full year back in the early part of the year. But now we are halfway through the fourth quarter.

Yes, I think we will close towards the lower end of that range.

I think because of the regulatory requirement that we have to keep the ranch as before but from the operational level. We believe the lower end of the range is more let's say realistic.

Speaker #6: Could you help us narrow down what the range would be for Q4 for module

Speaker #6: shipments? Yeah.

Tyler Bisset: Sorry. DNA and CapEx in Q2 and Q3, the absolute numbers.

Speaker #4: I think we will close to the lower end of the range. I think because of the regulatory requirement, we have to keep that range as before.

Yeah.

So related to that what do you think the global shipments of modules would be for the industry as a whole in 2025.

Speaker #4: But from the operational level, we believe the lower end of the range is more let's say

Charlie Cao: DNA? You mean the depreciation or CapEx? Sorry.

Speaker #4: realistic. I

Tyler Bisset: Depreciation. Then separately, CAPEX.

Well, we we technically we believe from the production wise, we're looking at roughly 700 gigawatt a SaaS.

Speaker #6: I see. So related to that, what do you think the global shipments of modules would be for the industry as a whole in 2025?

Charlie Cao: Okay. Depreciation by quarter, I think, is roughly, I think, $300 million a quarter. The CapEx, I think, is the first half year, we spend roughly $2 billion R&D.

So high level numbers, we are estimating for the whole industry.

Speaker #4: Well, we technically we believe from the production-wise we are looking at roughly 700 gigawatts just the high-level numbers we are estimating for the whole

Yeah.

And do you believe that 700 gigabytes would actually have been shipped out by the industry as well not that possess the production.

Well I think there is a more realized to our production closer to the production side, but because every company has a slightly different.

Tyler Bisset: Thank you.

Charlie Cao: Okay.

Speaker #6: And do you believe that

Speaker #6: 700 gigawatts would actually have been shipped out by the industry as well, or that was just the production?

Stella Wang: That is our last question, and that does conclude our conference for today. Thank you for participating. You may now disconnect.

Ways to calculate or announced their shipment numbers.

Yes.

Speaker #4: Well, I think it's more related to production closer to the production side. But because every company has slightly different ways to calculate or announce their shipment numbers, that's why it's difficult to figure out what the real shipment number is.

That's why it's difficult to figure out what's a real shipment number but production wise I think the number is smarter they stick.

I see okay.

So.

Moving on to another question relating to Capex could you give us the capex target for 2025 and also for 2026.

Speaker #4: But production-wise, I think the number is more realistic.

Speaker #6: I see. Okay, so moving on to another question relating to CAPEX. Could you give us the CAPEX target for 2025 and also for 2026?

Hum.

Roughly 5 billion RMB.

And next year.

And next.

Next year.

We didn't have.

Okay.

Expanding capacity and its kind of upgrade is really the next generation.

Speaker #4: It's roughly 5 billion RMB. It's the next year, and by next year, we begin to have any plan to expand capacity, and it's kind of upgraded to the next-generation top count technology.

Top comm tech knowledge and.

It's going to.

Second in Africa.

Hi, and higher power output solar module space.

We are able to.

Archrock customer next year.

Speaker #4: And it's going to have significant high-end, high-power output solar modules. We are able to provide our customers next year roughly 60%. So we go with a price premium and relatively good margin contributions quarter over quarter as the capacity for the high-end upgraded high-end module will be released quarter by quarter.

6% to 8%.

Right.

Real quick.

Please go.

As far as premium on a relatively good margin contribution.

And next year quarter over quarter as our capacity for the high high end and the upgrade of heightened.

Module capacity.

The least quarter by quarter.

So Tony just to be clear.

The Capex is 5 billion RMB and next year it'll be flat at $5 billion.

Yeah, roughly roughly by next year.

Bart.

It's a roughly payment payment of outstanding you know.

Speaker #6: So, Charlie, just to be clear, this year the CAPEX is ¥5 billion, and next year it will be flat at ¥5 billion.

Find plenty on next year, we are doing the upgrade.

Speaker #6: billion? Yes, roughly.

We are doing the upgrade of existing capacity.

Speaker #4: Roughly. But next year I talk about it. This year it's roughly payment of outstanding amount, $5 billion, and next year we are doing the upgrade.

Two the next high level, you know top car capacity and we.

We foresee a lot of strong demand.

He's hired.

Speaker #4: We are upgrading our existing capacity to the next high-level top count capacity, and we foresee a lot of strong demand, along with higher module prices and higher gross margins.

Module price and higher gross margin contributions.

Okay.

So.

You made a very interesting point that operating cash flow will be positive in 2025.

It looks like you will be generating operating cash flow positive in 2026, as well and may be substantially higher than 2025, because the gross margin will be higher.

Speaker #4: contributions.

Speaker #6: So

Speaker #6: So you made a very interesting point that operating cash flow will be positive in 2025. It looks like you will be generating positive operating cash flow in 2026 as well.

Is that a correct assessment.

Yes.

That's right that's right.

No we're talking about firstly I think the.

Hazardous it's the first one is E access storage business next year.

Speaker #6: And maybe substantially higher than 2025 because the gross margin will be higher. Is that a correct assessment?

Turning to <unk>.

10% to 15% of revenue contributions from yesterday's with decent gross margin on the policy and that profitability is.

Speaker #4: Yes. Yes. That's right. That's right. And we talk about, firstly, I think the catalyst is, first, the ESS storage business. Next year, we are looking at a 10% to 15% revenue contribution from ESS, with decent gross margins and positive net profitability.

Second why is the module business.

I think the most otherwise how come you know upgrade capacity.

<unk> and developed by ourself for the sake of knowledge.

Which will roughly half 60% share.

Speaker #4: And the second one is the module business. We have, I think, the most advanced top count upgrade capacities in the industry, developed by ourselves for the technology.

Shipments of the modules.

Coming from the next generation and Genco developed.

<unk> com.

Capacities.

Speaker #4: And which will roughly have 60% shipment of the modules coming from the next generation Ginkgo-developed top capacities with higher gross margins. And second, we think from the high-level standards in industry anti-involutions, taking effect step by step, and the capacity will accelerate phase out, leading by the top of that industry-leading self-discipline control, production volume, and renewable pricing based on the cost will take further, I think, enforcement.

Gross margins on second one way.

We thank you from the high level of standards in the industry.

Anti <unk>.

You know taking.

Take the effect step by step and the capacity.

Well accelerating for yourselves for yourselves and leading by the.

How about on top of that industry, leading self disciplined you know.

Control production volume.

Reasonable pricing based on the costs well.

For I think that enforcement, so combined together I think that industry is reaching.

Low point is recovering.

Step by step and the Genco, we are good at radio for the.

From an end market and product perspective.

Speaker #4: So combined together, I think the industry is reaching the low point and recovering step by step. And Ginkgo, we are getting ready from the market and product perspective.

In the past we are shifting solar plus yes. It is.

Our story in the prisoners.

So the basic plan next year. We are you know we we are trying we are.

Speaker #4: And plus, we are shifting the solar plus ESS story and the business. So the basic plan next year is that we are trying—not confident that we are able to navigate the cycles and turn to positive earnings.

But then we are able to you know navigate as the cycle turned to positive earnings that's a that's kind of there.

This time next year.

So.

Doug you talked about the premium products and the fact that they've got a premium pricing.

Speaker #4: That's kind of the business plan next year.

But on the cost side with your cost for these premium products will still be lower than the cost for the the.

Speaker #6: So, should we now talk about the premium products and the fact that they've got premium pricing? But on the cost side, will your costs for these premium products still be lower than the costs for the standard products this year?

The standard products. This year in other words do the costs keep going down even as the price goes up.

Yes.

Initially by design the cost is a little bit higher, but a very small incremental cost and by the way. Our R&D team continues to you know.

Speaker #6: In other words, do the costs keep going down even as the price goes up?

Speaker #4: Yes, yes. Initially, by design, the cost is a little bit higher, but very, very small incremental cost. By the way, our R&D team continues to dive into the details and to try to further improve the cost.

Diving into the details.

Trying to further improve the cost but back to <unk> question I think that.

The high end part of the causes.

It's a world where a small question mento, you know cost cost increase at the beginning we believe.

Speaker #4: But back to your question, I think the high-end products have a very small incremental cost increase at the beginning. However, we believe over time that our R&D team, along with our operational teams, will continue to improve the cost.

Oh over overtime.

Our R&D team R&D team.

Well with ours.

Our operational teams will continue to improve the cost.

Our final question Charlie on market share.

In the past.

<unk> 23, and 24 Europe global market share it had gone up to somewhere between 15 and 16% of the global market.

Speaker #6: Final, final question, Charlie. On market share, in the past, in 2023 and 2024, your global market share had gone up to somewhere between 15% and 16% of the global market.

This year it is down a little bit.

Spots you because you have the screen production.

Because of the pricing should we expect that your market share next year will go up again and maybe.

Go up a lot more than.

Speaker #6: This year, it has gone down a little bit. I guess partly because you have restrained production because of the pricing. Should we expect that your market share next year will go up again and maybe go up a lot more than 16% because the industry itself is consolidating?

16% because the industry itself is it as consolidated so.

What do you think the range for next year module shipments could be.

Uh huh.

The consolidated market share after consolidation outcome.

Speaker #6: So, what do you think the range for next year's module shipments could be?

The industry consolidating and freestyle the capacities of industry.

In turn turn into the kind of over.

No more situations for sure. So were good for Chevron companies. If you look at the long term we are confident in the work.

Speaker #4: The consolidated market share, after the consolidation of the industry and the phase-out of capacity, has turned the industry into a more normal situation. It’s for sure a very good outcome for Tier 1 companies.

We'll continue to penetrate the market this year.

The next year is to you I think you know from.

From the top down approach.

And I think China will continue to you know.

Speaker #4: If you look at the long term, we are confident and we are continue to penetrate the market share and the next year still, I think from the top down approach, and I think China will continue to launch implement the anti-involution policies we don't expect significant shipments increase for the module business.

Lunch implemented the anti human dosing policies, we don't expect significant shipments.

The increase for the module business, but yes. It is.

Different stories.

I see okay.

Thank you very much.

Uh huh.

Your next question comes from Philip Shen with Roth Capital Partners.

Speaker #4: But yes, it's a different

Oh, Hey, guys. Thanks for taking my follow up question.

Speaker #4: story. I see.

Chicken was transacted with you in terms of Q4 margin outlook.

Speaker #6: Okay. Thank you very

Speaker #6: much. Welcome.

Speaker #1: Your next welcome question comes from Philip Shen with Roth Capital.

What kind of.

Actually as you could see in Q4.

Speaker #1: Partners.

And then what kind of margin for the overall.

Speaker #7: Yes. Thanks for taking my

Speaker #7: Follow-up question: I just wanted to check in with you regarding the Q4 margin outlook. What kind of solar module ASP could we see in Q4?

Quarter.

Thanks.

We expect relatively stable you know Q4 versus Q3.

And about yes, its business is contributing more revenue.

Speaker #7: And then what kind of margin for the overall quarter could we see?

We estimate our yes its business in fourth quarter is going to rich.

Speaker #7: Thanks. We expect a relatively

Speaker #4: Stable Q4 versus Q3. But yes, it's business. It's contributing more revenues, and we estimate our ESS business in the fourth quarter is going to reach positive profitability levels.

Positive.

Profitability levels and.

But the contribution is not significant but next year is a different story, we have to talk about.

For the module business, we expect relatively stable.

Okay got it thanks, and then can you talk about.

Speaker #4: And, while the contribution is not significant, next year is a different story. We have talked about this, and for the module business, we expect relatively...

Module Asps for Q1, and Q2 of next year and then also the trajectory for margins you know as you blend in more batteries.

Speaker #4: stable. Okay.

Speaker #7: Got it. Thanks. And then can you talk about module ASPs for Q1 and Q2 of next year? And then also the trajectory for margins as you blend in more battery.

Yeah, So I think it's difficult to.

So to share those numbers or estimations right now because you don't know what is happening.

Like because of some of the key market.

Steel.

Speaker #4: Yeah, thanks. Phil, I think it's difficult to share those numbers or estimations right now because, you know, what is happening is that some of the key markets are still there. There are some key or some important policies upcoming; for example, in the U.S., the guidance on the fiat or material assistance, or even the upcoming Section 232, which will significantly impact the market prices.

No. There are you know some key or some important and our policy is if.

Upcoming for example, you know the U S. Our.

Our guidance off of the Fiat or mature so it does or upcoming two sorry, two which will impact.

Impacts of market prices like in China.

There is a N T involution policies on this earth.

Even more than rumors coming out had regarding the polysilicon you into the other part.

Part of the manufacturing better chance well sure those changes.

Speaker #4: Like in China, there's anti-involution policies and there's even more rumors coming out regarding the polysilicon even to the other part of the manufacturing value chain as well.

Changes could.

Southern Africa tender market price overnight, that's why we believe these still too early to share or our.

Our estimation of the prices for it for next year.

Okay.

Speaker #4: So those changes could significantly impact the market price overnight. That's why we believe it's too early to share our estimation on the prices for next year.

That makes sense you talked about the rumors on poly can you give us a little bit more color on that thanks.

Uh huh.

Half.

Too much more to share based voluntary so a lot of rumors on the market or on the internet or.

Speaker #7: Okay, Jonah. That makes sense. You talked about the rumors on poly. Can you give us a little bit more color on that? Thanks.

I don't know what you're referring to.

Oh, Yeah I was just you you've mentioned it so I thought I would try to see if there's more color Oh no. We are not part of the game. So I I don't have too much to share with everyone.

Speaker #4: I don't have too much more to share based on there's a lot of rumors on the market or on the internet. So I don't know what you're referring to.

Thank you for your question.

Yeah no problem. Okay. Thank you guys I'll pass it on.

Speaker #7: Yeah. I was just you mentioned it, so I thought I would try to see if there's more color.

Your next.

Question comes from Brian Lee with Goldman Sachs.

Speaker #4: We are not part of the game, so I don't have too much to share with everyone. But thank you for your question.

Hey, guys. This is Tyler bisset on for Brian. Thanks for taking my question.

Just a quick housekeeping question can you share what was DNA in Capex in <unk> and <unk>.

Speaker #7: Yep. No problem. Okay. Thank you, guys. I'll pass it on.

Speaker #1: Your next question comes from Brian Lee with Goldman Sachs.

Speaker #8: Hey, guys. This is Tyler Bissett on for Brian. Thanks for taking our question. Just a quick housekeeping question. Can you share what was DNA and CAPEX in Q2 and Q3?

You mean, the absolute Lamar percentage right.

Hello.

Hello.

As far as like the actual number.

Speaker #4: You mean the absolute number of percentage, right? Hello? Hello?

I think as a financial stimulus check check out the finance payments R&D and operating.

Since then.

Although we have disclosed quarter by quarter. So what would be your key question you want to explore.

Speaker #7: Yeah. I'm sorry. The actual number.

Speaker #4: I think in the financial statements, you're going to check out the financial statements, the R&D, and the operating expenses, and we have disclosed quarter by quarter.

Okay.

Sorry, DNA and Capex in <unk> and <unk> like the absolute numbers.

Speaker #4: So what would be your key question you want to explore?

Speaker #8: Sorry, DNA and CAPEX in Q2 and Q3, the absolute numbers.

Yeah right.

Oh, you mean, the depreciation or Capex sorry.

Depreciation alright, and then separately.

Okay.

Jason by quarter I think is.

Speaker #4: DNA. You mean the

Roughly.

And I think $300 million a quarter.

Speaker #8: Yes.

Speaker #8: Differentiation? And then Sorry.

Speaker #4: Sorry.

Speaker #8: separately

And the Capex asking as the first half of year.

Speaker #8: CAPEX. Okay.

Speaker #4: Differentiation by quarter, I think, is roughly and I think 300 million US dollars a quarter. And the CAPEX, I think, is the first half year.

We spent.

Spending roughly 2 billion RMB.

Yes.

Okay.

Okay.

That is our last question.

Speaker #4: We spend roughly 2 billion RMB.

Does conclude our conference for today. Thank you for participating you may now disconnect.

Speaker #8: I think.