JinkoSolar's Latest Communication Minutes

The continued mismatch between supply and demand in the second half of the year is the main reason for the decline in terminal prices. The industry is currently at the bottom of the cycle, and the disorderly expansion of industry capacity has been curbed from the source. The backward capacity is being cleared at an accelerated pace. In the future, the cycle will gradually pick up after the supply and demand relationship in the industry is rebalanced. At the bottom of the industry cycle, the company's bidding quotations in the domestic market have always been at a relatively high level among the leading companies. Overseas, it has achieved a high premium market leading share through global market capabilities. In the future, it will ensure a leading share and price level through more global localized manufacturing and investment layout.

The fourth quarter is the traditional peak season for domestic photovoltaic installation. According to the current plan, the production schedule in October will increase compared with September. At the same time, facing the continued decline in component prices in the domestic market, the company will strive to balance the operating rate and profit margin to maintain business sustainability.

The company's capital expenditure scale in the second half of this year is related to the pace of production capacity. According to the plan, the company's production capacity construction in the second half of this year will focus on the second phase project of Shanxi-Tihua Base, which will further consolidate the company's cost competitiveness. It is expected that capital expenditures in the second half of the year will be basically stable compared with the first half of the year, and the level of capital expenditures for the whole year will decrease significantly compared with the same period last year.

The company's 2GW module production capacity ramp in the United States is currently progressing normally. In the future, if production is successfully reached and combined with relevant localized industrial policies, it is expected to achieve better profit levels under the high local component prices. In response to potential tariff uncertainties, the company plans to adopt more diversified supply methods, actively strive for more preferential tax rates, and pay close attention to policy changes to ensure long-term stable supply.

With the start of domestic large-scale base projects, as well as the subsequent improvement of UHV construction and the improvement of grid absorption capacity, domestic demand will be steadily released. Overseas markets continue to maintain stable growth, and emerging markets such as Southeast Asia and the Middle East have a relatively fast overall growth rate. The market growth rate can be expected after the European inventory and grid absorption problems are solved. The demand in the US market should be combined with the election and policy implementation. In the long run, local production capacity in markets with high localization requirements is expected to maintain a differentiated premium.

Introducing new shareholders through subsidiaries to carry out equity financing is a common practice in the industry, and it is also a measure for the company to maintain financial stability and continuously optimize its asset-liability structure. The company will continue to optimize its asset-liability structure throughout the year to ensure the security of funds.