The solar energy sector presents a complex landscape for industry leader JinkoSolar, which finds itself navigating turbulent market conditions despite posting impressive shipment figures. The Chinese solar manufacturer’s strategic direction reveals a company balancing aggressive expansion against significant margin pressures that challenge its financial performance.
Institutional Confidence and Market Performance
Several major investment firms have demonstrated notable confidence in JinkoSolar’s long-term prospects despite current headwinds. During the first quarter, Greenwoods Asset Management significantly increased its stake by 37 percent, while Invesco Ltd. bolstered its position with a 15.3 percent addition. These substantial investments from sophisticated market participants suggest underlying strength that may not be immediately apparent from surface-level financial metrics.
First Quarter 2025: Impressive Volumes Mask Underlying Challenges
JinkoSolar’s operational performance during the opening quarter of 2025 showcased remarkable shipment volumes reaching 17.5 gigawatts of solar modules, generating revenue of $1.91 billion. The broader Chinese solar market demonstrated robust growth with new installations surging 31 percent to reach 59.7 gigawatts. Looking ahead, the company has set ambitious full-year targets projecting shipments between 85 and 100 gigawatts.
However, these impressive figures conceal significant operational challenges. The solar industry continues to experience substantial price compression throughout the supply chain, exacerbated by ongoing trade tensions. While shipment volumes continue to expand, profit margins per module face persistent pressure. Recent modest price recoveries in JinkoSolar’s domestic market offer some encouragement but appear insufficient to resolve deeper structural issues affecting profitability.
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Strategic Diversification Through Energy Storage
Recognizing the need to reduce dependence on module manufacturing alone, JinkoSolar is actively developing its energy storage business as a complementary revenue stream. The company anticipates delivering approximately 6 gigawatt-hours of storage solutions during 2025, with a strategic focus on international markets where 50 to 60 percent of planned capacity already holds firm orders. An additional 20 to 30 percent of capacity is in advanced negotiation stages, indicating successful traction for the company’s diversification strategy.
Manufacturing Expansion Amid Market Uncertainty
JinkoSolar continues to pursue aggressive capacity expansion with targets set for completion by the end of 2025. The company plans to establish production capabilities for 120 gigawatts of mono wafers, 95 gigawatts of solar cells, and 130 gigawatts of modules. A particular emphasis is being placed on advanced TOPCon technology products, with planned capacity growth to between 40 and 50 gigawatts. This substantial capital investment raises important questions about its economic viability given current market pricing dynamics.
The fundamental question remains whether JinkoSolar can successfully balance volume growth with sustainable profitability. The company’s ability to navigate this challenging environment will become clearer with subsequent quarterly results, which will indicate if the solar pioneer can adapt to industry-wide pricing pressures or become another casualty of intense market competition.
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