Q3 2026 Jinko Holdings Ltd Earnings Call

October 30, 2026

Operator: Hello, ladies and gentlemen, and thank you for standing by for JinkoSolar Holding Co., Ltd.'s Q3 2026 Earnings Conference Call. At this 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, Ms. Stella Wang, JinkoSolar Holding's Investor Relations Manager. Please proceed, Stella.

Speaker #1: Hello, ladies and gentlemen, and thank you for standing by for Jinko Holding's third quarter 2026 earnings conference call. At this time, all participants are in listen-only mode.

Speaker #1: 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.

Speaker #1: Jinko Holdings Investor Relations Manager. Please proceed, Stella.

Stella Wang: Thank you, operator. Hello, everyone, and thank you for joining us today for JinkoSolar Holding's Q3 2026 Earnings Conference Call. The company's results were released earlier today and are available on the company's IR website at ir.jinkosolar.com, as well as on news wire services. We have also provided a supplemental presentation for today's earnings call, which can also be found on the IR website. Joining us today are Mr. Jimmy Zhu, CEO of JinkoSolar Holding Limited, Mr. Craig Zhang, Acting CFO of JinkoSolar Holding Limited, Mr. Charlie Cao, CEO of Jinko Solar Co., Ltd., and Mr. Gener Miao, CMO of Jinko Solar Co., Ltd.. Mr. Zhu will discuss the group's business operations, company highlights, and key product developments, followed by Mr. Zhang, who will go through the financials. Management will be all available to answer your questions during the Q&A session.

Speaker #2: Thank you, operator. Hello, everyone, and thank you for joining us today for Jinko Holdings third quarter 2026 earnings conference call. The company's results were released earlier today, and are available on the company's IR website at ir dot jinkosolar dot com, as well as on newswire services.

Speaker #2: We have also provided a supplemental presentation for today's earnings call, which can also be found on the IR website. Joining us today are Mr. Jimmy Du, CEO of Jinko Holdings Limited; Mr. Craig Jiang, Acting CFO of Jinko Holdings Limited; Mr. Charlie Tao, CEO of Jinko Solar Company Limited; and Mr. Jina Miao, CMO of Jinko Solar Company Limited.

Speaker #2: Mr. Du will discuss the growth, business operations, company highlights, and key product developments, followed by Mr. Jiang, who will go through the financials. Management will be all available to answer your questions during the Q&A session.

Stella Wang: Please note that today's discussion will contain forward-looking statements made under the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, our future results may be materially different from the views expressed today. Further information regarding this and other risks is included in JinkoSolar Holding's public filings with the Securities and Exchange Commission. JinkoSolar Holding does not assume any obligation to update any forward-looking statements, except as required under the applicable law. It's now my pleasure to turn the call over to Mr. Jimmy Zhu, CEO of JinkoSolar Holding Limited. Please go ahead, Jimmy.

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

Speaker #2: Forward-looking statements involve inherent risks and uncertainties, as such as future results may be materially different from the views expressed today. Further information regarding this and other risks is included in Jinko Holdings public sellings with the securities and exchange commission.

Speaker #2: Jinko Holdings does not assume any obligation to update any forward-looking statements except as required under the applicable law. It's not my pleasure to turn the call over to Mr. Jimmy Du, CEO of Jinko Holdings Limited.

Speaker #2: Please go ahead, Jimmy.

Jimmy Zhu: Hello, everyone. This is Jimmy Zhu, and thank you for joining JinkoSolar Holding's Q3 2026 Earnings Call. Last Friday, we announced the completion of our name change to JinkoSolar Holding Limited, and today is the first time we are speaking with you under the new name. For us, the change is not simply the adoption of a new name. It marks a new start point in our development. Our recent Jinko 2026 Global Tech Day underscored how quickly energy and technology are converging. From PV to energy storage, and from energy supply to ever-growing demand for computing power in the AI era, technological innovation continues to expand the boundaries of energy industry. We believe that truly valuable innovation lies not only in pushing the limits of technology, but in bringing that technology into application, embedding across the industry, and creating long-term value.

Speaker #3: Hello, everyone. This is Jimmy Du, and thank you for joining Jinko Holdings third quarter 2026 earnings call. Last Friday, we announced the completion of our name change to Jinko Holdings Limited.

Speaker #3: And today is the first time we are speaking with you under the new name. For us, the change is not simply the adoption of a new name.

Speaker #3: It marks a new start point in our development. Our recent Jinko 2026 Global Tech Day underscored how quickly energy and technology are converging. From PV to energy storage, and from energy supply to ever-growing demand for computing power in the AI era, technological innovation continues to expand the boundaries of energy industry.

Speaker #3: We believe that truly valuable innovation lies not only in pushing the limits of technology, but in bringing that technology into application, embedding across the industry, and creating long-term value.

Jimmy Zhu: Going forward, we will continue to focus on our core solar and energy storage business while taking a more open approach to opportunities in AI, advanced materials, commercial space, and other frontier technologies. We aim to connect our industry expertise with external sources of innovation to support technologies and companies with long-term potential through disciplined capital allocation and advance both industrial development and long-term shareholder value through ongoing portfolio management. Let me begin by reviewing the operational performance of our solar and energy storage business, and then update you on our strategic investments. In Q3, we continued to deploy an operating strategy that balances sales volume and profitability, advancing the iteration and upgrade of our high-efficiency products and the development of our energy storage business.

Speaker #3: Going forward, we will continue to focus on our core solar and energy storage business while taking a more open approach to opportunities in AI, advanced materials, commercial space, and other frontier technologies.

Speaker #3: We aim to connect our industry expertise with external sources of innovation to support technologies and companies with long-term potential through disciplined capital allocation and advanced both industry developments and long-term shareholder value through ongoing portfolio management.

Speaker #3: Let me begin by reviewing the operational performance of our solar and energy storage business, and then update you on our strategic investments. In the third quarter, we continue to deploy an operating strategy that balances sales volume and profitability.

Speaker #3: Advancing the iteration and upgrade of our high-efficiency products, and the development of our energy storage business. Benefiting from higher shipments of high-efficiency products, the continued cost optimization of top-con 3 and improved profitability in our energy storage businesses.

Jimmy Zhu: Benefiting from higher shipments of high-efficiency products, the continued cost optimization of TOPCon 3.0, and improved profitability in our energy storage businesses, our operating performance improved significantly both year-over-year and sequentially. Gross margin was 12.3% in Q3, up approximately 8 percentage points sequentially and 5 percentage points year-over-year. Net loss and adjusted net loss both narrowed significantly on both a year-over-year and sequentially basis to USD 25.4 million and USD 1.2 million respectively. Looking ahead, we will build on three core pillars, namely technical innovation, globalization, and AI transformation, to drive integrated solar plus storage development and to convert our technology, manufacturing capability, and global network into a stronger and systematic solution. Looking at the details, module shipments were 15 GW in Q3. With a strong brand and product capabilities, we continued to expand our footprint in high-value overseas markets.

Jimmy Zhu: Benefiting from higher shipments of high-efficiency products, the continued cost optimization of TOPCon 3.0, and improved profitability in our energy storage businesses, our operating performance improved significantly both year-over-year and sequentially. Gross margin was 12.3% in Q3, up approximately 8 percentage points sequentially and 5 percentage points year-over-year. Net loss and adjusted net loss both narrowed significantly on both a year-over-year and sequentially basis to $25.4 million and $1.2 million respectively. Looking ahead, we will build on three core pillars, namely technical innovation, globalization, and AI transformation, to drive integrated solar plus storage development and to convert our technology, manufacturing capability, and global network into a stronger and systematic solution. Looking at the details, module shipments were 15 GW in Q3. With a strong brand and product capabilities, we continued to expand our footprint in high-value overseas markets.

Speaker #3: Our operating performance improved significantly, both year over year and sequentially. Gross margin was 12% 12.3% in third quarter, up approximately 8% sequentially, and 5% year over year.

Speaker #3: Net loss and adjusted net loss both narrowed significantly, on both a year over year and sequentially basis, to USD 25.4 million and USD 1.2 million, respectively.

Speaker #3: Looking ahead, we will build on three core pillars: namely, technical innovation, globalization, and AI transformation. To drive integrated solar power storage development, and to convert our technology manufacturing capability, and global network into a stronger and systematic solution.

Speaker #3: Looking at the details, module shipments were 15 gigawatts in third quarter. With a strong brand and product capabilities, we continue to expand our footprint in high-value overseas markets.

Jimmy Zhu: In Q3, overseas markets were the primary destination for shipments, accounting for around 70% of the total. We continue to optimize our product mix, with the shipments of Tiger Neo 3.0 modules exceeding 5 GW during the quarter and commanding a premium for approximately USD 0.01 per watt over conventional modules. We also made progress with the capacity ramp-up with Tiger Neo 3.0, with production cost continuously improving. We are well aware that technological innovation with real long-term competitiveness should not pursue an efficiency breakthrough alone. It must also meet customer needs across different application scenarios and deliver tangible economic benefits through scaled mass production. Recently, we launched the next-generation Tiger Neo 5.0 all-black premium residential module based on the TAC technology platform, featuring power output of up to 510 watts and module efficiency of up to 25.52%.

Jimmy Zhu: In Q3, overseas markets were the primary destination for shipments, accounting for around 70% of the total. We continue to optimize our product mix, with the shipments of Tiger Neo 3.0 modules exceeding 5 GW during the quarter and commanding a premium for approximately $0.01 per watt over conventional modules. We also made progress with the capacity ramp-up with Tiger Neo 3.0, with production cost continuously improving. We are well aware that technological innovation with real long-term competitiveness should not pursue an efficiency breakthrough alone. It must also meet customer needs across different application scenarios and deliver tangible economic benefits through scaled mass production. Recently, we launched the next-generation Tiger Neo 5.0 all-black premium residential module based on the TAC technology platform, featuring power output of up to 510 watts and module efficiency of up to 25.52%.

Speaker #3: In third quarter, overseas markets were the primary destination for shipments, accounting for around 70% of the total. We continue to optimize our product mix with shipments of Tiger New 3 modules, exceeding 5 gigawatts during the quarter.

Speaker #3: And commanding a premium for approximately 1 US cent per watt, over conventional modules. We also made progress with the capacity ramp-up with Tiger New 3, with production costs continuously improving.

Speaker #3: We are well aware that technological innovation with real long-term competitiveness shall not pursue inefficiency breakthrough alone. It must also meet customer needs across different application scenarios, and deliver tangible economic benefits through scaled mass production.

Speaker #3: Recently, we launched the next-generation Tiger New 5 all-black premium rescue module, based on the TAC TAC technology platform, featuring power outputs of up to 510 watts and module efficiency of up to 25.52%.

Jimmy Zhu: Leveraging our core TAC technology, we will focus on our global premium distributed market segment, particularly residential rooftop applications. We are planning to gradually ramp up production and shipments over the next two years in line with the market demand and industry conditions. At the same time, we will continue to strengthen our network through relationships with installers and end customers and improve both product competitiveness and local service capability so that our technological advantages translates more effectively into a commercial value. We are pleased to see our energy storage business deliver growth in both sales volume and profit in Q3. We recognized approximately 1.75 GWh of energy storage shipments as revenue, matching the total recognized for the whole of last year, with the business also generating positive quarterly operating profit for the first time.

Speaker #3: Leveraging our core TAC technology, we will focus on our global premium distributed market segment, particularly residential rooftop applications. We are planning to gradually ramp up production, and shipments over the next two years.

Speaker #3: In line with the market demand and industry conditions. At the same time, we will continue to strengthen our network through relationships with installers and end customers, and improve both product competitiveness and local service capability.

Speaker #3: So that our technological advantages translates more effectively into a commercial value. We are pleased to see our energy storage business deliver growth in both sales volume and profit in third quarter.

Speaker #3: We recognize approximately 1.75 gigawatts-hour of energy storage shipments as revenue. Matching the total recognized for the whole of last year, with a business also generating positive quarterly operating profits for the first time.

Jimmy Zhu: We are actively advancing the application of our proprietary PCS products and continuing to explore opportunities in emerging scenarios such as data centers. Going forward, we will further optimize our geographic and order book mix and deepen the synergies between solar and storage across customer resources, sales channels, and technical services in order to deliver more sustainable growth and profit contribution. The PV industry is at a critical stage of supply and demand adjustment, as the relevant national authorities continue to promote the orderly and well-regulated development of the industry through stricter standards and higher technical and energy efficiency requirements. We expect these measures to support the gradual phase-out of less efficient capacity and competition to focus more on technological innovation, product quality, and customer value.

Speaker #3: We are actively advancing the application of our proprietary PPS products, and continuing to explore opportunities in emerging scenarios such as data centers. Going forward, we will further optimize our geographic and order book mix, and deepen the synergies between solar and storage across customer resources, sales channels, and technical services.

Speaker #3: In order to deliver more contribution. The achieving industry is at a critical stage of supply and demand adjustment. As a relevant national authorities continue to promote the orderly and well-regulated development of the industry through stricter standards, and higher technical and energy efficiency requirements.

Speaker #3: We expect these measures to support the gradual phase-out of less efficient capacity. And competition to focus more on technological innovation, product quality, and customer value.

Jimmy Zhu: We will maintain our operating strategy of balancing sales volume and profitability, continue to optimize our product and order book, and exercise strict control over capital expenditure in order to make the improvement in our operating performance more sustainable. We expect module shipments of between 16 GW and 18 GW in Q4. For full year 2026, we expect energy storage system shipments POD of approximately 10 GWh. By the end of 2026, we expect to have approximately 40 GW of high-efficiency capacity that meet level 1 national energy efficiency requirements. Alongside the progress in our core solar and energy storage business, we continue to invest in semiconductors, AI, energy storage, and other frontier technologies in Q3, with total and follow-on investments of approximately CNY 330 million, of which approximately CNY 254 million came from the company's own capital.

Speaker #3: We will maintain our operating strategy of balancing sales volume and profitability, continue to optimize our product and order book, and exercise strict control over capital expenditure.

Speaker #3: In order to make the improvement in our operating performance more sustainable. We expect module shipments of between 16 gigawatts to and 18 gigawatts in fourth quarter.

Speaker #3: For full year 2026, we expect energy storage system shipments POD of approximately 10 gigawatts-hour, by the end of 2026, we expect to have approximately 40 gigawatts of high-efficiency capacity, that meet level one national energy efficiency requirements.

Speaker #3: Alongside the progress in our core solar and energy storage business, we continue to invest in semiconductors, AI, energy storage, and other frontier technologies in third quarter.

Speaker #3: With total and follow-on investments of approximately RMB 330 million, of which approximately RMB 254 million came from the company's own capital. This includes Kiwi More, a product of full-stack AI networking products, and a solution specializing in advanced chiplets and chip interconnection technologies.

Jimmy Zhu: This includes KiwiMoore, a producer of full-stack AI networking products and a solution specializing advanced chiplets and chip interconnection technologies, and TIGSTOR, a company focused on the development and application of supercapacitor technologies. We also saw continued progress across our strategic investment portfolio during the quarter. SiliconFlow completed the second tranche of its Series B+ financing round and its Series C financing round in September 2026. StepFun launched its STEPX terminal brand and related AI terminal products in July, further extending application of its large language models in end-user devices. More recently, Adaspace Technology, another of our portfolio companies, passed the listing hearing of Hong Kong Stock Exchange. In terms of the portfolio management and value realization, at the end of Q3 2026, the fair value of our strategic investment portfolio was approximately CNY 2.05 billion.

Speaker #3: And Tickstore, a company focused on the development and application of supercapacitor technologies. We also saw continued progress across our strategic investment portfolio during the quarter.

Speaker #3: Silicon flow completed the second tranche of its service B plus financing rounds and its service C financing round in September 2026. Stepfund launched its StepX terminal brand and related AI terminal products in July, further extending application of its large language models in end-user devices.

Speaker #3: More recently, Ada Space Technology, another of our portfolio companies, passed a listing hearing of Hong Kong Stock Exchange. In terms of the portfolio management and value realization, as an at the end of third quarter of 2026, the fair value of our strategic investment portfolio was approximately RMB 2.05 billion.

Jimmy Zhu: During the first 9 months of 2026, our portfolio generated gains of approximately CNY 327 million, comprising approximately CNY 82 million in realized gains and approximately CNY 244 million in unrealized fair value gains. Over the same period, portfolio exits generated approximately CNY 386 million in cash proceeds. Notably, having divested a substantial proportion of our equity interest in LAPLACE in H1, we completed the exit from our remaining equity interest in Q3, generating additional cash proceeds of approximately CNY 38.7 million. Our initial investment in LAPLACE was approximately CNY 65 million, and the investment generated cumulative gains of approximately CNY 357 million. Looking ahead, we will remain selective in pursuing investment opportunities, balancing new investments against exits based on the operating performance and value realization path of each portfolio company, and improving capital utilization efficiency.

Speaker #3: During the first nine months of 2026, our portfolio generated gains of approximately RMB 327 million, compromising approximately RMB 82 million in realized gains, and approximately RMB 244 million in unrealized fair value gains.

Speaker #3: Over the same period, portfolio exit generated approximately RMB 386 million in cash proceeds. Notably, having divested a substantial proportion of our equity interest in Laplace in the first half, we completed the exit from our remaining equity interest in third quarter, generating additional cash proceeds of approximately RMB 38.7 million.

Speaker #3: Our initial investment in Laplace was approximately RMB 65 million, and investment generated cumulative gains of approximately RMB 357 million. Looking ahead, we will remain selective in pursuing investment opportunities, balancing new investments against exits based on the operating performance and value realization path of each portfolio company.

Speaker #3: And improving capital utilization efficiency. By improving the performance of our core solar and energy storage business, and progressively realizing the value of our portfolio, we remain committed to creating sustainable long-term value for our shareholders.

Jimmy Zhu: By improving the performance of our core solar and energy storage business and progressively realizing the value of our portfolio, we remain committed to creating sustainable long-term value for our shareholders. This concludes my remarks, and I will turn the call over to Craig.

Speaker #3: This concludes my remarks, and I will turn the call over to Craig.

Craig Zhang: Thanks, Yujing. With our focus on high-efficiency products and high-value markets, the continued growth in revenue contribution from our energy storage business, and the unremitting cost control initiatives, we achieved a steady improvement in our financial performance. Gross margin was 12.3% in Q3, up 8.1% sequentially and 5% year over year. Loss from operations and net loss narrowed significantly both sequentially and year over year. Operating cash flow was approximately $91 million for the first nine months of 2026, as we continued to optimize our cash flow management. We will continue to balance sales volume and profitability and to control cash flow, and we expect full-year operating cash flow to improve compared to last year. Now, let me walk you through our Q3 financial results in more detail.

Speaker #1: Thanks to you, Jimmy. With our focus on high-efficiency products and high-value markets, the continued growth in revenue contribution from our energy storage business, and the unremitting cost control initiatives, we achieved a steady improvement in our financial performance.

Speaker #1: Gross margin was 12.3% in the third quarter up 8.1% sequentially, and a 5% year-over-year. Loss from operations and net loss narrowed significantly both sequentially and year-over-year.

Speaker #1: Operating cash flow was approximately 91 million dollars for the first nine months of year '26, as we continued to optimize our cash flow management.

Speaker #1: We will continue to balance sales volume and profitability and to control cash flow. And we expect full-year operating cash flow to improve compared to last year.

Speaker #1: Now, let me walk you through our third quarter financial results in more detail. Please note that all year-over-year and sequential percentage changes in monetary figures are calculated based on an RMB basis.

Craig Zhang: Please note that all year-over-year and sequential percentage changes in monetary figures are calculated based on an CNY basis, and the corresponding USD amounts are provided for reference only. Total revenue was $2.03 billion, up 10.2% sequentially and down 15.7% year over year. The sequential increase was mainly attributable to growth in revenue generation from our energy storage system and an increase in the average selling price of solar modules, while the year-over-year decrease was primarily due to a decrease in the shipment volume of solar modules. Gross margin was 12.3%, compared with 4.2% in Q2 2026 and 7.3% in Q3 2025. The sequential and year-over-year increase were mainly driven by continued cost optimization in our high-efficiency production lines, and the increased share of high-efficiency product shipments, and a greater contribution from higher-margin energy storage system revenue.

Speaker #1: And the corresponding US dollar amounts are provided for reference only. Total revenue was 2.03 billion dollars up 10.2% sequentially, and down 15.7% year-over-year. The sequential increase was mainly attributable to growth in revenue generated from our energy storage system and an increase in the average selling price of solar modules.

Speaker #1: While the year-over-year decrease was primarily due to a decrease in the shipment volume of solar modules. Gross margin was 12.3% compared with 4.2% in the second quarter of year '26, and 7.3% in the third quarter of year '25.

Speaker #1: The sequential and year-over-year increase were mainly driven by continued cost optimization in our high-efficiency production lines. And the increased share of high-efficiency product shipments and a greater contribution from higher margin energy storage system revenue.

Craig Zhang: Total operating expenses were $261.2 million, down 10.2% sequentially and 32.3% year over year. The sequential decrease was primarily due to lower expected quality loss in Q3 2026, while the year-over-year decline was mainly due to a reduction in the impairment of long-lived assets and lower expected credit losses. Operating expenses account for 12.9% of total revenue, compared to 15.8% in Q2 2026 and 16% in Q2 2025. The recovery in gross margin and the decrease in operating expenses together narrowed our losses from operations to $11.9 million in Q3. Operating loss margin was 0.6%, compared with 11.6% in Q2 2026 and 8.7% in Q3 2025.

Speaker #1: Total operating expenses for 261.2 million dollars down 10.2% sequentially, and a 32.3% year-over-year. The sequential decrease was primarily due to lower expected quality loss in the third quarter of year '26, while the year-over-year decline was mainly due to a reduction in the impairment of unleveled assets and lower expected credit losses.

Speaker #1: Operating expenses account for 12.9% of total revenue, compared to 50.8% in the second quarter of year '26, and a 16% in the second quarter of year '25.

Speaker #1: The recovery in gross margin and the decrease in operating expenses together narrowed our losses from operations to 11.9 million dollars in the third quarter.

Speaker #1: Operating loss margin was 0.6% compared with 11.6% in the second quarter of year '26, and 8.7% in the third quarter of year '25. Net loss attributable to Jinko Holdings Limited's ordinary shareholders was 25.25 million dollars in the third quarter of year '26, compared with 103 million dollars in the second quarter of year '26, and 105 million dollars in the third quarters of year '25.

Craig Zhang: Net loss attributable to Jinko Holdings Limited ordinary shareholders was $25.4 million in Q3 2026, compared with $103 million in Q2 2026 and $105 million in Q3 2025, improving both year-over-year and sequentially. Excluding the impact of the change in fair value of long-term investments, gain from disposal of subsidiaries, impairment of long-lived assets, and share-based compensation expenses, adjusted net loss attributable to Jinko Holdings Limited ordinary shareholders was $1.2 million in Q3 2026, compared with $134 million in Q2 2026 and $57.5 million in Q3 2025, improving both year-over-year and sequentially. Now moving to the balance sheet.

Speaker #1: Improving both year-over-year and sequentially. Excluding the impact of the change in fair value of the long-term investments, gain from disposal of subsidiaries, impairment of long-lived assets, and share-based compensation expenses, adjusted net loss attributable to Jinko Holdings Limited's ordinary shareholders was 1.2 million dollars in the third quarter of year '26.

Speaker #1: Compared with 134 million dollars in the second quarter of year '26, and 57.5 million dollars in the third quarter of year '25. Improving both year-over-year and sequentially.

Speaker #1: Now, moving to the balance sheet. At the end of the third quarter, our cash cash equivalents and restricted cash was 2.32 billion dollars in total, compared with 2.1 billion at the end of the second quarter of year '26.

Craig Zhang: At the end of Q3, our cash equivalents, and restricted cash was $2.32 billion in total, compared with $2.1 billion at the end of Q2 2026. Accounts receivable turnover days were 103 days, compared with 113 days in Q2 2026. Inventory turnover days were 133 days, compared to 125 days in Q2 2026. At the end of Q3, total interest-bearing debt was $6.73 billion, compared to $6.62 billion at the end of Q2 2026. Net debt was $4.41 billion, compared to $4.12 billion at the end of Q2 2026. This concludes our prepared remarks. We are now happy to take your questions. Operator, please proceed.

Speaker #1: Accounts receivable turnover days were 103 days, compared with 113 days in the second quarter of year '26. Inventory turnover days were 173 days, compared to 125 days in the second quarter of year '26.

Speaker #1: At the end of the second quarter third quarter, total interest bearing debt was 6.73 billion dollars compared to 6.62 billion dollars at the end of the second quarter of year '26.

Speaker #1: Net debt was 4.41 billion dollars compared to 4.12 billion dollars at the end of the second quarter of year '26. This concludes our prepared remarks.

Speaker #1: We are now happy to take your questions. Operator, please proceed.

Operator: 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.

Speaker #2: 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.

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

Oscar Qin: Hey, guys. This is Oscar Qin on for Philip Shen. The first question is on margin for your core business. Just want to know, do you see further opportunities to improve your margin by optimizing your product and geographic mix in 2027, even if that could mean lower shipment volume versus 2026? What is your outlook for module ASP in Q4 2026 and in 2027? I have follow-up questions. Thank you.

Speaker #3: Hey, guys. This is Oscar Shin on for Philip Shen. The first question is on margin for your core business. Just want to know, do you see further opportunities to improve your margin by optimizing your product and geographic mix in 2027, even if that means if even if that could mean lower shipment volume versus '26?

Speaker #3: And then what is your outlook for module ASP in Q4 '26 and 2027? And then I have follow-up questions. Thank you.

Charlie Cao: Hey, this is Charliepiano talking. Looking to next year, 2027, we did, I think, have the opportunity to optimize the product mix, the shipment to different regions, including the segment utilities and the distributed generation segment. That will be the key driver for Jinko. We are on the track to have the mass production for the Tiger Neo 3.0. This year's the key products, and we believe next year we are in a good product mix and capacity mix. The next key task will be optimize the mix of the shipment to different customers, regions, and segments. If we are talking about ASP, we believe it is already bottomed up, and we expect it is going to be stabilized with the capacity based on next year.

Speaker #1: Hey, this is Charlie speaking. Talking. Looking to next year, 2027, we did, I think I have the opportunity to optimize the product mix, the shipment to different regions and including the segment utilities and the resist distributed generation segment.

Speaker #1: That will be the key driver for Jinko. And we are on the track to have the mass production for the tiger near three. This is this year's the key products and we believe next year we are in a good product mix.

Speaker #1: And the capacity mix, and the next key task will be optimize the mix of the shipment to different customers regions and segments. So if we're talking about ASP, we believe it's already bottom up and we expect it's going to be stabilized and with the capacity based on next year.

Charlie Cao: We strongly believe the current profit margin and the price is not sustainable, and we need to have a kind of recovery next year.

Speaker #1: We strongly believe the current profit margin and the price is not sustainable. And we need to have kind of the recovery next year.

Oscar Qin: Okay. Second question, could you quantify any impacts of freight or elevated energy costs on your Q3 cost margins? Do you think those impact could persist into 2027?

Speaker #3: Okay. And then second question, could you quantify any impacts of freight or elevated energy costs on your Q3 gross margins? And then do you think those impacts could persist in 2027?

Charlie Cao: It did have because shipment, particularly I think the most important significant impact is the shipment logistics cost. Getting the Middle East conflict and the very high price for the oil and gas. We build a base case. It could be the high energy price will be last for few quarters, but second half year or next year, we believe it is going to get back to the normal status.

Speaker #1: It did have because shipment, particularly I think the most important significant impact is the shipment logistic cost. Given the Middle East conflict and the very high price for the oil and the gas, and but we build the base case it could be the high energy price will be last for few quarters, but second half year or next year we believe it's going to be get get back to the normal status.

Oscar Qin: Okay, that is helpful. Last question for me. I am interested in your strategic investment business. Now with the strategic investment becoming an additional value driver, how significant do you expect this platform to become relative to your core solar business over the next few years in terms of maybe capital deployment or earnings contribution? How is the management team allocating the time and resources between the core and investment business?

Speaker #3: Okay. That's helpful. And then last question for me, I'm interested in your strategic investment business and then now with the strategic investment becoming an additional value driver, how significant do you expect this platform to become relative to your solar core solar business over the next few years in terms of maybe capital deployment or earnings contribution?

Speaker #3: And then how is the management team allocating the time and resources between the core and investment business?

Charlie Cao: Before talking to details of strategic investment, I like to highlight two parts. JinkoSolar Holding, it is kind of holding companies. The one with cash assets is 55% roughly equity. China-based A-share, Jinko Solar Co., Ltd., whose business is integrated solar and plus storage business. That is one of the key assets. From the JinkoSolar Holding Co., Ltd. perspective, I believe from long term, it is just kind of the controlling shareholders. It is not going to have the plan to make the additional allocation of capital to the Jinko Solar Co., Ltd. manufacturing business. On top of that, because they have sizable resources, cash resources, in the last few years, they started to build a very strong investment teams. Starting from initially, it is kind of the focus on the key equipment and the material and kind of startup companies for the solar storage business.

Speaker #1: Yeah. Before talking to details of strategic investment and I'd like to highlight two parties. The Jinko Holding is kind of holding companies one of the assets is 50 5% roughly equity.

Speaker #1: So China based Asia the Jinko Solar which whose business is integrated solar and plus storage business. And that is one of the key assets.

Speaker #1: But from the Jinko Solar holding company perspective, I believe from long-term there's it's just kind of the controlling shareholders. And it's not kind of have the plan to make the additional allocation capital to the Jinko Solar manufacturing each year business.

Speaker #1: Okay. On top of that, because they they have the sizable resources and cash resources, in the last few years they started to build a very strong investment teams starting from initially it's kind of the focus on the key equipment and the material and kind of startup companies for the solar storage business.

Charlie Cao: Gradually, they expand the investment group scope to the AI, kind of large model companies and a lot of chip companies, the industries. Back to your question, they are not going to allocate additional capital to the manufacturing business. The focus will be the kind of strategic investment and including traditional solar storage related and to more broad high-tech sectors.

Speaker #1: And gradually they expand the investment group scope and to the AI kind of the large model companies and a lot of chip companies industries.

Speaker #1: So it's back to your question. They're not going to allocate additional capital to the manufacturing business. And the focus will be the kind of strategic investment and including traditional solar storage related and to more broad high-tech sectors.

Oscar Qin: Okay, thank you. I will pass it on. Thanks.

Speaker #3: Okay. Thank you. I will pass it on. Thanks.

Operator: Once again, if you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. Your next question comes from Rajiv Chaudhri with Sunsara Capital.

Speaker #2: 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 Chandri with Samsara Capital.

Rajiv Chaudhri: Good morning. First of all, congratulations on a very strong performance across both storage and the basic module business. That is the first thing. The question I want to ask first is about storage, actually. You are suggesting that the shipments in Q4 will be around 5.5 GWh to get you to the 10 GWh for the year. But in terms of recognizing revenues, you have a lot of revenues from last year that probably still have not been recognized, and your shipments this year have also been ahead of your revenue recognition. When you combine all that with a very strong shipment quarter in Q4 alone, what sort of revenue recognition should we be expecting?

Speaker #4: Good morning. First of all, congratulations on a very strong performance across both storage and the basic module business. So that's the first thing. The question I want to ask first is about storage actually.

Speaker #4: I'm you are suggesting that the shipments in the fourth quarter will be around five and a half gigawatts hours to get you to the 10 gigawatt hours for the year.

Speaker #4: But in terms of recognizing revenues, you have a lot of revenues from last year that probably still have not been recognized. And your shipments this year have also been ahead of your revenue recognition.

Speaker #4: So when you combine all that with a very strong shipment quarter in the fourth quarter alone, what sort of revenue recognition should we be expecting?

Rajiv Chaudhri: Is it going to be in the 6 or 7 or 8 GWh of revenue recognition, which would be 3 to 4 times what you recognized in Q3? Can you give us a sense of that?

Speaker #4: Is it going to be in the six or seven or eight gigawatt hours of revenue recognition? Which would be three to four times what you recognized in the third quarter.

Speaker #4: Can you give us a sense of that?

Charlie Cao: Okay. For the big picture, it is the storage business. It is kind of like the solution turnkey business. It is going to go through a lot of procedures, shipment acceptance, and commissioning. Typically, different regions, it takes about 6 months to 12 months to fulfill the obligations and recognize revenue on the financial statements. It is a little bit late recognitions nature. Back to your questions, last year, 2025, we have 5 GWh shipment and 1 GWh revenue recognitions. The gap delayed last year from last year is 4 GWh. For this year, the shipment is 10 GW, but we roughly estimate the revenue recognition could be 6 to 7 GW. If you look at 2 years together, we have 5 plus 10, 15 GWh shipments in 2 years, and revenue recognition is roughly 7 to 8.

Speaker #1: Okay. For the big picture is the storage business is kind of the like the be like the solution term key business. So it's going to be goes to a lot of procedures shipment acceptance and commissioning typically different regions it takes about six months to 12 months is to fulfill the obligations and recognize revenue on the financial statements.

Speaker #1: So it's a little bit late recognitions nature. And so back to your questions and last year 2025 we have five gigawatts hours shipments. And.

Speaker #1: One gigawatt hours revenue recognitions. So the gap delayed last year from last year's four gigawatt hours. For this year the shipment. Gigawatt but we roughly estimate the revenue recognition could be six to seven gigawatts.

Speaker #1: So if you look at a two year together, we have five plus 10, 15 gigawatt hours shipments in two years. And revenue recognition is roughly seven to eight.

Charlie Cao: Roughly 7 GWh will be delayed to next year for commissioning and for revenue recognitions.

Speaker #1: So there's a roughly seven gigawatt hours will be delayed to next year for commissioning and for revenue recognitions.

Charlie Cao: Roughly 7 GWh will be delayed to next year for commissioning and for revenue recognitions.

Rajiv Chaudhri: Great. Thank you. That also means that you will recognize about 3 to 4 GWh in Q4, is what you are suggesting?

Speaker #4: Great. Thank you. That also means that you will recognize about three to four gigawatt hours in the fourth quarter is what you're suggesting.

Charlie Cao: I think in the first nine months, we have roughly, I think, 3 GWh, a little bit over 3 GWh for three quarters. But Q4 should roughly be, I think, three. One quarter is roughly equal to the last three quarters.

Speaker #1: I think first nine quarters for the first nine months and we have roughly I think three gigawatt hours a little bit over than three gigawatt hours for three quarters.

Speaker #1: But the fourth quarter should roughly be I think three one quarters roughly equal to the last three quarters.

Rajiv Chaudhri: Okay. Next question I have is about the geographic distribution of module sales. Could you tell us about the sales that you had? I know you said 70% outside of China, but how much of it was in the US?

Speaker #4: Okay. Next question I have is about the geographic distribution of module sales. Could you tell us about the sales that you had? I know you said 70% outside of China.

Speaker #4: But how much of it was in the US?

Charlie Cao: For Q3, roughly, I think, let me do the calculation. Roughly, it is 1 GW modules a quarter in Q3.

Speaker #1: For the third quarter roughly I think let me do that calculation roughly it's still one gigawatt hours. So one gigawatt modules a quarter in the third quarter.

Rajiv Chaudhri: So Q3 was 1 GW. What do you expect Q4 to be in the US?

Speaker #4: So third quarter was one gigawatt. And what do you expect the fourth quarter to be in the US?

Charlie Cao: I think it is quite similar. Close to 1 GW.

Speaker #1: Six, five, seven or close to close to one or close to one gigawatts.

Rajiv Chaudhri: Also, can you comment on your shipments into India? What kind of shipment did you do in India in Q3, and what do you expect in Q4?

Speaker #4: Okay. And also can you comment on your shipments into India? What kind of run what kind of shipment did you do in India in Q3 and what do you expect in Q4?

Rajiv Chaudhri: Also, can you comment on your shipments into India? What kind of shipment did you do in India in Q3, and what do you expect in Q4?

Charlie Cao: Okay. I think I'm not maybe similar to the exact numbers, but the big picture, India has a tariff, the trade barrier, okay, to China, made in China products. Our shipment, the module shipment to India is not so significant. But we look at the big region, that is Asia Pacific region. That is our big market, but India is very small, not so big.

Speaker #1: Okay. I think I'm not for maybe exact numbers but the big picture the junior has a starter train power rail. Okay. To China made in China for us.

Speaker #1: So our shipment the module shipment to India is not so significant. But we look at the big region that is in Asia Pacific regions.

Speaker #1: That is near is a very big market but India is very small. It's not so big.

Rajiv Chaudhri: I see. Okay. Moving on to the Previously, you used to break out the shipments of wafers and cells. You have not broken them out in the last 2 quarters. Is that because they are close to zero, or you have changed your reporting policy?

Speaker #4: I see. Okay. And moving on to the you previously you used to break out the shipments of wafers and cells. You have not broken them out in the last two quarters.

Speaker #4: Is that because they are close to zero or is or you have changed your reporting policy?

Charlie Cao: I think we did not change the reporting policies. But the majority part, 90%, maybe 95% is the module revenue. I think we did emphasize the wafer and cell revenue because typically it is kind of low-efficiency product.

Speaker #1: I think we didn't change reporting policies. And but the majority part 90% maybe 90, 95% is the module revenue. So I think we did emphasize the wafer sale revenue because it's typically it's kind of low inflation product.

Rajiv Chaudhri: Right. Okay. Final question is on the gross margin. There was a nice improvement in gross margin in Q3, and I suspect that was, even though the module margins were up very nicely, the gross margin in storage is still higher than the gross margin in modules right now?

Speaker #4: Right. Okay. And final question is on the gross margin. There was a nice improvement in gross margin in Q3 and I suspect that was even though the module margins were up very nicely, the gross margin in storage is still higher than the gross margin in modules right now.

Charlie Cao: Yes. The gross margin, storage business roughly 15% to 20%, which is the 10% the module gross margin, but the revenue contribution is not significant, roughly 5% to 6%. I think from margin perspective, combined together from the module storage business, maybe 1% to 2% impact.

Speaker #1: Yes. The gross margin storage business roughly 15 to 20% versus the 10% the module gross margin. But the revenue contribution is not significant roughly five to six percent.

Speaker #1: So I think that from margin perspective combined together from the module solar storage business maybe one percent to two percent impact.

Rajiv Chaudhri: I see. My final question is on the gross margin expectation for Q4. You said that Tiger Neo 3.0 modules exceeded 5 GW in Q3. What kind of shipment number are you thinking for Q4?

Speaker #4: I see. And my final question is on the gross margin expectation for the fourth quarter. You said that Tiger Neo 3.0 modules exceeded five gigawatts in Q3.

Speaker #4: What kind of shipment number are you thinking for Q4?

Charlie Cao: You mean gross margin or shipments?

Speaker #1: You mean gross margin. Shipments?

Rajiv Chaudhri: Well, shipments first, and then related to that, I guess, would be the impact on the gross margin, right?

Speaker #4: Well, shipments first and then related to that I guess would be the impact on the gross margin, right?

Charlie Cao: Yeah. We did have more Tiger Neo 3.0 product shipments. Q3 is roughly 30%, and Q4 roughly 40%. So, gradually increased 10%. That will have impact on the gross margin as well. Q4, the gross margin, we did see some pressure, and particularly, we expect relatively more shipment to China, as well as we have some contracts, long-term contract we signed in the beginning of this year. We may need to deliver by the end of this year. Back to your question, but it is a kind of one-quarter impact, but we expect with relatively higher mix percentage from high-margin product did help the gross margin, but from the country shipments, with more shipment, China typically Q4 is a big season for China. It have some kind

Speaker #1: Yeah. Yeah. We did have more the Tiger Neo 3 product shipments and the Q3 is roughly 30% and Q4 roughly 40%. So gradually increase 10%.

Speaker #1: That way we have impact on the gross margin. As well. But the Q4 the gross margin we did see some pressure particularly we expect more relatively more shipment to the China as well as we have some contracts long-term contract with size in the beginning of this year.

Speaker #1: We may need to deliver by the end of this year. So back to your question but it's a kind of one quarter impact but we expect with relatively higher mix percentage from high margin product did half the gross margin but from the country shipments with more shipment China typically Q4 is pick season for China it's have some kind of.

Rajiv Chaudhri: When you net it all out, and also you will have more shipments of storage, we should still expect gross margin to improve sequentially?

Speaker #4: So when you net it all out and also you'll have more shipments of storage, we should still expect gross margin to improve sequentially?

Charlie Cao: It did help. It did help, but anyway, we think Q4, we did face some pressure on the gross margin overall, particularly more shipments to China.

Speaker #1: It did half. It did half. But anyway we think Q4 we did face some pressure on the gross margin overall particularly more shipments to China.

Rajiv Chaudhri: I see. So, the higher shipments to China will bring the gross margin overall down from the third quarter level?

Speaker #4: I see. So the higher shipments to China will bring the gross margin overall down from the third quarter level?

Charlie Cao: It's depending on.

Speaker #1: It depends.

Rajiv Chaudhri: Or it will not allow it to expand?

Speaker #4: Or it will not allow it to expand?

Charlie Cao: Yeah, there's a lot of factors. Particularly, if you look at the commodity price, it looks like some material cost is up, some is down. Anyway, we think Q4, we tended to, we're giving more shipment to China. We face some headwinds for the gross margin.

Speaker #1: Yes. There's a lot of factors particularly if you look at the commodity price it looks like some mature cost is up. Some it's down.

Speaker #1: So anyway we think Q4 we tended to giving more shipment to China we face some headwinds for the gross margin.

Rajiv Chaudhri: I see. My final question is on shipping costs. Can you tell us what's been happening with shipping costs in Q3 and what we should expect in Q4?

Speaker #4: I see. My final question is on shipping costs. Can you tell us what's been happening with shipping costs in Q3 and what we should expect in Q4?

Charlie Cao: It's stable, but it's on the high level, particularly for the shipment to the Middle East regions. It has kind of the ripple effect because the oil price is high. Now it's kind of 100 dollars, right? It's going to have impact on the overall shipment to different regions. But the most impact countries and regions is the Middle East, the Red Sea, their regions.

Speaker #1: It's stable but it's on the high level particularly for the shipment to the Middle East regions. It has kind of the ripple effects because the oil price is high.

Speaker #1: Now it's kind of $100, right? And it's going to have impact on the overall shipment to different regions. But. Most impact countries and regions is the Middle East.

Speaker #1: The Red Sea regions.

Rajiv Chaudhri: I see. Okay. Thank you.

Speaker #4: I see. Okay. Thank you.

Charlie Cao: Thank you.

Speaker #1: Thank you.

Operator: Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. We will just pause for a moment to allow questioners to enter the queue. Once again, that's star one on your telephone and wait for your name to be announced. We are showing no further questions at this time. That does conclude our conference for today. Thank you for participating. You may now disconnect.

Speaker #2: Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. We will just pause for a moment to allow questioners to enter the queue.

Speaker #2: Once again, that's star one on your telephone and wait for your name to be announced. We are showing no further questions at this time.