Breaking Down Jinko Power Technology Co.,Ltd. Financial Health: Key Insights for Investors

Investors scrutinizing Jinko Power Technology Co., Ltd. (601778.SS) will find a mix of warning signs and breakout metrics: Q3 2025 revenue plunged to RMB 998 million - a 49.26% year-over-year decline - even as net profit attributable to shareholders for the first nine months of 2025 climbed to RMB 356 million, up 61.82% year-over-year, and annual revenue for 2024 reached RMB 4.77 billion (a 9.25% increase from 2023); profitability ratios are uneven with a Q3 2025 net profit margin of 23.4% versus an operating margin of -8.7% and a trailing ROE of 2.91%, while liquidity shows strength-cash and equivalents of RMB 5.394 billion as of Sept. 30, 2025, a current ratio of 1.92 and operating cash flow of RMB 3.273 billion for the first nine months (up 454.05% year-over-year)-counterbalanced by a debt-to-equity ratio of 1.28, interest expenses of RMB 326.8 million in Q3 and an interest coverage ratio of 1.06; valuation metrics imply mixed market expectations with a trailing P/E of 27.18, forward P/E of 18.69, P/S of 3.24 and P/B of 0.66, and the company's strategic moves into integrated solar-storage, virtual power plants and recent grid-connected projects (Feidong Jinying 100MW/200MWh and Shangrao microgrid) underscore growth opportunities amid risks from falling module prices, trade barriers, regulatory shifts and supply-chain volatility-read on to see how these figures translate into investor action and portfolio implications

Jinko Power Technology Co.,Ltd. (601778.SS) - Revenue Analysis

Key topline movements and context for Jinko Power Technology Co.,Ltd. (601778.SS) across recent periods.

• Q3 2025 revenue: RMB 998 million (down 49.26% year-over-year vs Q3 2024).
• First nine months 2025: Net profit attributable to shareholders: RMB 356 million (up 61.82% YoY).
• Full-year 2024 revenue: RMB 4.77 billion (up 9.25% vs 2023).
• Total employees: 1,643; revenue per employee: RMB 2.44 million.

• Drivers of the Q3 2025 revenue decline:
  • Industry-wide module price erosion as capacity expanded faster than demand.
  • Short-term contract pricing pressure and inventory markdowns.
• Offsets and positive signals:
  • Substantial YoY growth in net profit for the first nine months of 2025 suggests margin or cost improvements, or favorable product mix/recognition timing.
  • 2024 annual revenue growth (9.25%) points to an underlying medium-term expansion prior to the 2025 Q3 shock.
• Operational efficiency metric:
  • Revenue per employee = RMB 2.44 million (RMB 4.77 billion / 1,643 employees as a reference point to assess productivity).

Context and further background on the company can be found here: Jinko Power Technology Co.,Ltd.: History, Ownership, Mission, How It Works & Makes Money

Jinko Power Technology Co.,Ltd. (601778.SS) - Profitability Metrics

• Net profit margin (Q3 2025): 23.4% (up from 13.3% in Q3 2024)
• Operating margin (Q3 2025): -8.7% (down from 0.3% in Q3 2024)
• Gross profit margin (Q3 2025): 7.3% (up from 2.9% in Q2 2025)
• ROE (TTM): 2.91%
• EPS (TTM): RMB 0.11; P/E: 27.18
• Net profit for first nine months of 2025 has already exceeded the full-year net profit for 2024

• Gross margin recovery driven by lower unit costs of products sold (Q3 2025 vs Q2 2025).
• Large swing in net profit margin suggests one-off items, tax or non‑operating gains contributed to Q3 2025 net income despite negative operating margin.
• Negative operating margin indicates higher operating expenses or margin pressure at the core business level that management must address to sustain net margin gains.
• ROE of 2.91% signals modest returns on equity-investors should weigh capital efficiency versus recent net profit improvements.
• P/E of 27.18 on EPS RMB 0.11 reflects market valuation relative to current earnings and expectations of future improvement.
• Sequential and year-over-year comparisons (Q3 2024 → Q3 2025) highlight improved bottom-line conversion but warn of operating volatility.

Jinko Power Technology Co.,Ltd. (601778.SS) - Debt vs. Equity Structure

• Debt-to-Equity: 1.28 - leverage is above 1, implying debt exceeds shareholder equity.
• Current Ratio: 1.92 - near 2, indicating comfortable short-term liquidity.
• Interest Expense (Q3 2025): RMB 326.8 million - direct cost of debt financing for the quarter.
• Interest Income (Q3 2025): RMB 125.0 million - partially offsets interest costs.

• Net interest impact (Q3 2025): Interest expense minus interest income = RMB 201.8 million net interest cost for the quarter.
• Operating expense trajectory: a 35.8% QoQ increase to RMB 2.59 billion suggests cost pressures or expanded operating activities; this will compress margins unless revenue or efficiencies offset it.
• Valuation perspective: EV/EBITDA of 13.13 and EV/Revenue of 7.10 place a premium on earnings and revenue - investors are paying multiple times current earnings and sales, which increases sensitivity to margin and growth execution.

Jinko Power Technology Co.,Ltd. (601778.SS) - Liquidity and Solvency

• Cash and cash equivalents: RMB 5.394 billion (increase ≈ RMB 360 million vs. year-end prior year)
• Quick ratio: 1.34 - adequate near-term liquidity to meet immediate obligations
• Operating cash flow (1H9M 2025): RMB 3.273 billion - up 454.05% year-over-year
• Interest coverage ratio: 1.06 - operating income barely covers interest expense
• Total assets and total liabilities: not specified in available data, limiting full solvency assessment
• Net cash flow from operating activities: significantly enhanced, indicating stronger cash-generation capability and improved market competitiveness

Jinko Power Technology Co.,Ltd. (601778.SS) - Valuation Analysis

• Trailing P/E: 27.18 - market is paying 27.18× last twelve months' earnings per share.
• Forward P/E: 18.69 - market-implied earnings improvement reflected in ~31% lower forward multiple vs. trailing.
• P/S (Price-to-Sales): 3.24 - investors pay 3.24× annual revenue per share.
• P/B (Price-to-Book): 0.66 - stock trading at 0.66× book value, indicating market price below net asset value.
• EV/EBITDA: 13.13 - enterprise value amounts to 13.13× EBITDA, a measure of valuation relative to operating profitability.
• EV/Revenue: 7.10 - enterprise value equals 7.10× annual revenue, showing how the market prices top-line generation.
• Market capitalization: ≈ RMB 12.97 billion; Share price: RMB 3.850 (Dec 16, 2025).

• Relative signals: forward P/E materially below trailing P/E suggests expected near-term earnings recovery or margin expansion priced by the market.
• Balance-sheet signal: P/B at 0.66 flags book-value support beneath market cap-relevant for deep-value or asset-backed assessments.
• Enterprise valuation signal: EV/EBITDA 13.13 and EV/Revenue 7.10 imply the market assigns a premium to operating cash generation and revenue conversion; compare vs. peers for context.

Jinko Power Technology Co.,Ltd. (601778.SS) - Risk Factors

• Falling solar module prices: global oversupply from capacity expansion has driven average mono‑PERC module ASP declines; company ASP pressure reduces revenue per GW unless offset by cost cuts or higher volumes.
• Trade barriers & international competition: anti‑dumping, tariffs, and stricter sourcing rules in Europe, India and the U.S. can restrict export markets and compress margins vis‑à‑vis low‑cost competitors.
• Regulatory changes: shifts in feed‑in tariffs, subsidy rollbacks, or changes to distributed‑generation policies in China and key export markets can materially affect demand.
• High leverage: elevated debt levels relative to equity increase refinancing and interest coverage risk if earnings decline or cash flows are volatile.
• Raw material & supply chain risk: polysilicon, silver paste, EVA and glass price swings - and logistics disruptions - can increase unit costs and squeeze margins.
• Concentration risk: heavy revenue dependence on the Chinese market exposes outcomes to regional GDP cycles and government policy shifts.

• Leverage & interest coverage: with debt ≈ RMB 18bn and EBITDA margins tight, a sustained ASP decline or delayed receivable collections could push interest coverage toward stress levels; refinancing at higher rates would elevate financing costs.
• Market concentration: reliance on the Chinese market (~55% domestic) means policy adjustments (e.g., subsidy reallocation to energy storage) could materially reduce near‑term demand.
• Counterparty & receivables risk: increasing project developer stress or delayed government payments in some provinces can lengthen working capital cycles and raise credit loss risk.
• Operational & supply chain disruptions: factory outages, port congestion or input shortages can force spot purchases at higher prices or curtail shipments, compressing margins and delaying revenue recognition.

• Mitigants investors should monitor:
• Trend in module ASPs and company pricing power;
• Debt maturity profile and available liquidity (cash + undrawn facilities);
• Hedging or long‑term contracts for polysilicon and other inputs;
• Geographic diversification of sales and percentage of non‑China revenue.

Jinko Power Technology Co.,Ltd. (601778.SS) - Growth Opportunities

• Grid-scale energy storage: Feidong Jinying 100MW/200MWh grid‑side energy storage project connected to the grid in September 2025.
• Microgrids: Shangrao source‑grid‑load‑storage microgrid project connected to the grid in Q1 2025.
• Market innovations: Achieved first green certificate application for residential PV and first proxy transaction of power from a new energy station within the year.
• Capital and asset integration: Investment in an offshore private equity fund focused on renewable energy to connect renewable assets with global capital.
• Strategic partnership: Established a new energy company with XINJI ENERGY in October 2025 to accelerate project development and retail offerings.

• Revenue and margin levers: integrated storage and retailing create higher‑margin service and merchant revenue opportunities compared with traditional module sales.
• Risk mitigation: diversification into VPPs, microgrids and international PE fund exposure spreads project and market risk across multiple revenue streams.
• Execution focus: recent grid connections (Feidong, Shangrao) validate technical and operational capability to deliver system‑level projects.