Thank you, operator. Hello, everyone, and thank you for joining us today for JinkoSolar's second-quarter 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 newswire services. 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. Dingming Zou, CEO of JinkoSolar Holding Company Limited; Mr.

Gener Miao, CMO of JinkoSolar Company Limited; Mr. Pan Li, CFO of JinkoSolar Holding Company Limited; and Mr.

Charlie Cao, CEO of JinkoSolar Company Limited. Mr.

Zou will discuss JinkoSolar's business operations and company highlights, followed by Mr. Miao, who will provide an update on sales and marketing, and then Mr.

Pan Li, who will go through financials. Management will be available to answer questions during the Q&A session.

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's public filings with the Securities and Exchange Commission.

JinkoSolar 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.

Dingming Zou, CEO of JinkoSolar. Please go ahead, Jimmy.

Hello, everyone. This is Jimmy Zou, and thank you for joining JinkoSolar's second-quarter 2026 earnings call.

It is an honor to take the role of CEO. I appreciate the trust the board of directors and management team have placed in me.

Standing at this milestone of our 20th anniversary as we embark on the next stage of our development, I look forward to working closely together to further enhance our operating performance and strategic execution to drive sustainable, high-quality growth. I will begin by reviewing our operational performance in the second quarter and then outline our key priorities going forward.

In the second quarter, module shipments increased sequentially to approximately 16 GW. Supply and demand imbalances across the PV industry remain dynamic.

These pressures were further compounded by shifts in domestic and overseas policies with prices across the supply chain and industry profitability remaining under pressure. As the cost of ramping up our high-efficiency products remained elevated during the quarter, together with the impact of delivering certain low-value orders, gross margin decreased sequentially during the quarter, while our net loss expanded.

Facing this operating pressure, we optimized our order book and geographic mix, rationally managed utilization rates, and continued to expand the proportion of high-efficiency products within shipments, while introducing technologies that lower costs. These measures are driving a gradual recovery in profitability.

The underlying pattern of PV industry competition is gradually shifting from capacity and shipment scale to effective supply, product value, and earnings quality. The mandatory new national standard on energy efficiency for modules and inverters released in July will take effect in January 2027.

The new standard set Level 3 energy efficiency as the minimum threshold for market access. Products that fail to meet this minimum threshold will not be permitted for production or sale, placing high-efficiency products in a stronger position for large-scale renewable energy project tenders.

Meanwhile, the implementation of market-based pricing for renewable power is pushing customer to increasingly focusing on energy track, energy yield, reliability, and lifetime value of modules. These changes are beneficiary to industry leaders with advanced manufacturing capacity, technological expertise, global delivery, and long-term service capabilities, which will accelerate the phaseout of inefficient production capacity.

By the end of 2026, we expect to have more than 40 GW of TOPCon 3.0 production capacity. Based on the new standard thresholds, these products are expected to meet Level 1 energy efficiency requirements and strengthen our annualized production capacity for high-efficiency products to lead the industry.

We continue to advance our product portfolio and build a solid base for next-generation technologies based on our TOPCon technology roadmap. In June, we unveiled our newest next-generation TOPCon Tiger Neo 5.0 modules.

By optimizing multiple core technologies, the Tiger Neo 5.0 achieved mass-produced efficiency of 25.91% and a power output of over 700 W, setting a new benchmark for TOPCon product performance once again. ESS shipments in the first half of the year were 3.1 GWh, increased significantly year over year.

Benefiting from our presence in high-value market, gross margin improved year over year in the first half of 2026. Due to uncertainties in timing of project delivery and other factors, recognized revenue remains in ramp-up stage.

Approximately 1.5 GWh were recognized as revenue in first half, including more than 1 GWh in the second quarter. As project deliveries increase alongside ongoing enhancement of our in-house PCS, EMS, and other capabilities, we will continue to boost the efficiency of both revenue recognition and profit realization, driving high-quality growth for our ESS business.

Now, I will move on to our guidance for the third quarter and full year of 2026. We expect our annual integrated production capacity to reach approximately 100 GW by year-end 2026, including approximately 14 GW from overseas facilities.

Considering demand dynamics in certain markets, we will place greater emphasis on balancing shipment volume, profitability, cash flow, and order quality going forward, and adjusting guidance for full-year 2026 module shipments to between 60 GW and 70 GW, and high-efficiency products accounting for over 60%. We expect module shipments to be between 15 GW and 17 GW in third quarter of 2026.

For full-year 2026, we expect our energy storage system shipments to more than double year over year. As we continue to strengthen the competitiveness of our core solar and energy storage businesses, we are also building an investment platform through disciplined capital allocation and professional investment management that will act as a complementary driver for long-term value creation.

Over the past several years, leveraging our deep industry expertise and long-term perspective on technological trends, we have made disciplined and selective investments directly or through fund platforms, focusing on strategic synergies, technological innovation, and long-term value creation. Our early investment primarily focused on the solar and energy storage value chain.

In recent years, as AI drives demand for computing power and electricity demand, we have selectively expanded our investments scope to the AI ecosystem and other frontier technologies. To date, we have invested in more than 40 companies in total.

As of June 30, 2026, we have invested an aggregate of approximately RMB1.86 billion in cash. The original cash cost of the investments remaining in our portfolio is approximately RMB1.5 billion with a fair value of approximately RMB1.99 billion as of the same date.

Our investment portfolio has generated cumulative value appreciation of approximately RMB880 million, comprising of approximately RMB410 million in realized gain from exits and approximately RMB470 million in unrealized fair value from remaining investments in the portfolio. During the first half of 2026, our portfolio generated gains of approximately RMB4 490 million, comprising approximately RMB110 million in realized gains and approximately RMB380 million in unrealized fair value gains.

In the first half of 2026, we divested a substantial portion of our equity interest in LATRAS Renewable Energy Technology Company Limited, receiving over RMB300 million in cash proceeds. Since our initial investment in LATRAS, the cumulative realized gain on this disposal exceeded RMB250 million.

This gain was recognized over multiple periods through fair value adjustments following its IPO in late 2024, with over RMB100 million recorded in change in fair value of long-term investments upon settlements in the first half of 2026. In addition, Hangzhou Gold Electronic Equipment Company Limited successfully completed its listing on ChiNext market of Shenzhen Stock Exchange during the second quarter, creating an additional pathway for future value realization.

Looking ahead, we will continue to maintain a disciplined approach to capital allocation. Supporting the long-term development of our core solar and energy storage business will remain our top priority.

At the same time, we will continue to evaluate our existing strategic investments based on the operating performance, strategic synergies, and long-term value creation potential of each portfolio company, while remaining disciplined and selective in pursuing new opportunities. Through strengthening our core businesses, realizing portfolio value, and improving capital utilization efficiency, we remain committed to creating sustainable long-term value for our shareholders.

This concludes my remarks. I will now turn the call over to Gener.

Thanks, Jimmy. Total shipments were 32.9 GW in the first half, with solar module shipments accounting for over 90%, leveraging sales network covering nearly 200 countries and regions and 35 service centers globally.

We continued to optimize our geographic mix and customer structure overseas. In the first half, shipments to the overseas market accounted for over 70%, mainly across Asia-Pacific, Europe, and emerging markets.

In the second quarter, the proportion of high-efficiency product shipments improved sequentially. Our Tiger Neo 3.0 series continued to command a premium of approximately $0.01 per watt over conventional products.

We also began to ship a small number of scenario-based products in the second quarter and gradually plan to increase deliveries in the second half. Those products already command a premium of approximately $0.005 to $0.01 per watt over conventional products.

Following the launch of AIDC and other scenario-based module products in the first quarter, we recently released the Sunis 365 smart solar storage system. This comprehensive series of integrated PV storage solutions covers several scenarios such as retail, supermarkets, AIDC, and the manufacturing sector.

Specially, the AIDC solution is built around our Tiger Neo 3.0 module platform technology and the SunTera energy storage system, capable of meeting the demand from data center for power supply reliability, energy economics, and the sustainable low-carbon development through the coordinated control of energy storage system, PCS, EMS, and smart operations and maintenance. We recently received the highest AAA bankability rating in the Q2 2026 Bankability Rating Report for Module Manufacturers released by PV Tech.

Since first participating in the evaluation in 2014, we have maintained a great rating for 12 consecutive years. Also, we were recognized as a Tier 1 energy storage provider by BNEF for the 10th consecutive quarter.

This ratings reinforce our bankability, project implementation capabilities, and long-term delivery capabilities for the international market. Impacted by the market-based pricing mechanism for renewable energy and the pace of project investment, domestic installation demand has slowed.

Yet we observed positive signs of shifting structural demand with national-level large-scale renewable energy base projects lead by the central and state-owned enterprises, maintaining a steady pace of progress. The share of tenders for high-efficiency modules has increased significantly in the centralized procurement, and the criteria has shifted from simply pursuing lowest-bidding price to greater emphasis on module efficiency, lifecycle power generation performance, reliability, and long-term delivery capability.

High-efficiency modules have already commanded a reasonable premium in tenders. At the same time, the distributed generation market is transitioning from scale-driven growth toward a focus on scenarios and operational value.

Brand reputation, channel, local services, and scenario adaptability are becoming increasingly critical. This trend benefits enterprises with global channels, established brands, and differentiated products, which enable conversion of technology and product power into more stable price relationship and product value.

Looking forward to 2027, as electricity pricing marketization policies are gradually absorbed and mechanism-based pricing and project ROI models become clear, several projects that were delayed due to insufficient returns are expected to gradually resume. Large-scale renewable energy-based projects, direct green power connection, and the distributed scenario-based application will continue to drive domestic demand.

The overseas market is expected to maintain strong growth resilience, benefiting from energy security, growing power demand, and improved solar-plus-storage economics. Leveraging our global sales network, leading high-efficiency products, and continuously expanding solar-plus-storage solutions, we will capitalize on the opportunities arising from changes in demand structure and expanding application scenarios.

We will continue to optimize our market and product mix, and leverage our technological advantages to strengthen our presence in high-value markets, enhance product value, and improve the quality of our operations. With that, I will turn the call over to Pan.

Thank you, Gener. Leveraging our leading position and the high-efficiency products, we optimized our sales mix during the quarter, resulting in gross margin reaching 4.2%, up 1.3 percentage point year over year.

We also continue to optimize our capital structure and cash flow management and generated positive operating cash flow during the period, a significant improvement compared to last quarter. Our asset-to-liability ratio declined by approximately 1.5 percentage point from the beginning of the year.

For the reminder of the year, our focus will be on balancing scale and earnings quality while carefully controlling cash flow. We expect full-year operating cash flow to improve compared to 2025.

Looking at our second-quarter financials in more detail: Total revenue was $1.82 billion, up 0.9% sequentially and down 31% year over year. The sequential and year-over-year changes were mainly due to the fluctuation in the shipments volume of modules.

Gross margin was 4.2%, compared with 8.3% in the first quarter and 2.9% in the second quarter last year. The sequential decrease was mainly due to lower average selling price of solar modules, while the year-over-year increase was primarily due to a higher ASP.

Total operating expenses were $287 million, up 21% sequentially and 2% year over year. The sequential and year-over-year increases were mainly due to higher expected credit losses in the second quarter this year.

Operating expenses accounted for 15.8% of total revenues, compared to 13.1% in the first quarter this year and 10.6% in the second quarter last year. Operating loss margin was 11.6%, compared with 4.8% in the first quarter this year and 7.7% in the second quarter last year.

Moving to the balance sheet: At the end of second quarter, our cash and cash equivalents were about $2.5 billion, compared with about $3.3 billion at the end of the first quarter this year. AR turnover days was 113 days, compared with 128 days in the first quarter of '26.

Inventory turnover was 125 days, compared to 142 days in the first quarter this year. At the end of the second quarter, total debt was about $6.6 billion, compared to about $6.8 billion at the end of the first quarter of '26.

Net debt was $4.1 billion, compared to $3.5 billion at the end of the first quarter of '26. This concludes our prepared remarks.

We're now happy to take your questions. Operator, please proceed.

Hey, guys. This is Tyler Bisset on for Brian.

Thanks for taking our questions. ASPs declined pretty meaningfully sequentially, curious how you're viewing ASPs so far in Q3 and how much of an impact you could see from greater shipments of Tiger Neo 3.0 modules.

Yeah.

For the ASP side, firstly, apple to apple, we are expecting the price goes up a little bit in Q3, and if we look into the average prices, it will goes up as well because the first reason is because from the current market situations, the price is going up because of different reasons, but spot market is going up. Most of the DG prices are following the spot market, we are expecting the price of DG goes up.

The second reason is because the mix of different products. Our 3.0 product, which is a premium product, the ratio in Q3 will be definitely higher than Q2, which will be helpful to lift up the ASP in Q3 as well.

Super helpful. We've seen pricing for wafers and cells increase pretty meaningfully over the past month.

We've also seen futures prices for poly also increasing following some industry self-regulation. Wanted to see how you're thinking about your input costs over the near term and whether you're expecting any impacts from some of these recent moves in input costs.

You're talking about the increased cost, right?

What is the impact? We believe it's a kind of healthy rebound, including polysilicon, glasses, and a couple of materials.

That is why I think the industry pair and the increase module price. We don't believe this is going to have negative impact on the customer side.

If you look at landscape, and the solar is the cheapest energy sources. Now there's a huge demands for storage.

Solar plus storage will be the dominator of the energy diversification for most of the regions.

Okay. Just one more from us.

Can you provide any more details on how you're balancing shipment volumes and profitability and how that weighed on your shipment volume guidance for the year? Are there certain markets that you are prioritizing or de-emphasizing?

We guided down the shipments, right, to 60 to 70. That's what clear message.

We don't believe it's right time to focus scale. Profitability and operating cash flow is the key.

We do a lot of optimization of the structures, not only the markets as well as the products and efficiencies, even our employee resources. Particularly if you look at the 2026, and the demand in China is 30% to 40% lower than last year.

Definitely, we have less and less exposure in China. China is still relatively competitive.

The price is one of the lowest markets. What we are doing is not only the country by country, as well as the customer by customer.

On top of that, because we are rolling out the Tiger Neo 3, and that is one of the key markets and targeted in potential markets and particularly for the premium markets including US, including Europe. That is one of the area we'd like to penetrate more market share and to get relatively good profitability.

All right. Thank you very much.

Yeah. I just like to take the opportunity to I think the investors in on the call.

Wow, this quarter meeting, earnings release a relatively different. If you look at JKS and the US companies, we like the reposition the companies, long strategies.

Firstly, JKS is a kind of the controlling shareholders of Jinko China. Which the company which is the focus on integration of the solar plus storage.

Now JKS has more capabilities. In the last five years, we build up a very, very strong in strategic investment teams and invest a dozens of investments.

A lot of investments are very, very successful. In the last five years, we focus on solar, storage related upstream, downstream.

Kind of a very high-growth potential companies to make the financial investment and to get investment returns and as well as get some synergies for Jinko China. On top of that, because China is more kind of a more competitive on the new technology like the AI, quantum, and computing, robotics, and the teams is shifting the focus to more kind of strategic and broad industries, particularly the next generation.

We think the JKS is kind of the shifting to both. One is the controlling of the Jinko China and focus on renewable energy.

On top of that, the JKS and the US companies will shifting more capabilities to invest on the high-growth opportunities. China is the second-most powerful country.

There's a lot of massive opportunities. Our teams are able to take the advantage.

We would like to the investors gradually to have the communication with our IR teams and to understand what is the progress, particularly for the strategic investments we are planning and we have made, which we believe will be get a very strong return for the JKS in the next two or three years. Again, we think it's a good for the valuation of JKS.

If you look at purely the China versus US, this is a very big valuation gap. The US is just 20%, 30% of valuations.

Plus, we have a lot of portfolios investment and unique investment which we are able to monetize. I like to take the opportunity to bring this key topic and have the investor understand, okay, what we are going to do and in the future.

Thank you.

Hey, guys, thanks for taking my questions. Jimmy, nice to meet you.

Congratulations on the new position. Wanted to check in with you guys on the Section 232.

Specifically, given your recent transition and sale of your US assets to FH Capital, can you talk about the impacts of the 232 on that JV? How do you expect module pricing to be impacted, and then ultimately how do you expect the landscape of manufacturers to shift as a result of the Section 232?

Thanks.

In general, we believe it's kind of very good for Jinko's strategy to divest our manufacturing shifting to non-failed entities in the United States. Specifically, I think JV, because we are the financial minority investors, we are not in a position to discuss the plan for the joint ventures because the majority shareholder take the leadership, and we are not involved in any operations.

For the 232, in general, we believe that is consistent with Trump administration to bring manufacturings back to the United States, not only the module capacity, as well as the wafer, polysilicon, and solar cell capabilities. We have expectation, anticipation the 232 will be coming in the early year, but it's come a little bit late.

We have some kind of diversified the potential supply chain to minimize the impact. Anyway, we believe that is going to be increase the cost of the solar modules.

That is going to have the impact to the solar development cost. We believe because it's a little bit significant increase for the potential solar module price, but it's not have a significant impact for the solar farm investment returns, given the US PPA prices is in recent years gradually increased to a relatively competitive, but a little bit higher level.

Back to your question, and we think it's anticipated, but it's a little bit exceeding expectation because the import price tax rate a little bit higher, but it's not so high to make the industry demand dramatically go down. We still believe US is a good market in the next few years.

Jinko has minority interest, and the joint venture will penetrate the US market to take the opportunities in the US market.

Okay. Thanks, Charlie.

Would you expect pricing to kind of go to $0.42, $0.44 in the US? You guys are a JV minority owner now, but I gotta imagine you have some views on pricing.

What's your sense of where module pricing goes in the US? Thanks.

If you look at the minimum price, $0.38, right? $0.38, 15% tariff.

It's I think the market is evaluating the potential impact, and customer is evaluating how they are going to proceed their project plan. I think we don't have definitive answer from customers, but the initial feedback is that most of projects will continue, even they under this kind of 232 policy disruptions.

That is my initial preliminary information.

Great. That's very helpful.

Thanks, Charlie. Then, you just mentioned two elements of the 232, the minimum import price and then the 15% ad valorem tariff.

There's also a third part, which is the tariff rebate program that is based on US capex. Would you expect your JV to qualify for that tariff rebate program?

It's still a JV question. I'm not in a position, but based on interpretation of policy, my understanding is, firstly, it's a kind of new capacity expansion.

Secondly, it should include wafer, cell, and maybe polysilicon, right? It's a new capacity addition.

The solar module is not included. It looks like it's targeting for the wafer, cell, and as well as polysilicon.

Right, that's true. It's based on new capacity, but it can support manufacturers to expand capacity.

Okay. I'll pass it on from here.

Thank you very much.

Welcome.

Good morning, everybody. I have a few questions, starting with, can you calibrate for us the size of the market that you expect globally this year in 2026 and then break it down between the total size in China and international?

[Foreign language]

You mean the 2026 total demand, right?

Yes.

Yeah. I think 2026 we are expecting a low year because of the sharp drop of the China domestic demand.

If you are looking the number-wise, we are thinking roughly module-side, it will be roughly 600 GW or slightly below that. That will be our expectations.

If you break them into different categories, you will find out, for example, in China, you will find out mainly the demand disappeared from the utility market, but the distribution market are still strong or robust during the first half. If you look at non-China market demand, you will find out the European market has some up and downs during the first half.

If we look into the total numbers, because of the first-quarter rush of the VAT policy change in China, most of the non-China demand is almost in line with the expectations, even slightly higher than last year. That's what we have for the first half and our expectation for this year.

For next year, we believe there will be some recovery in the utility market in China. We are expecting a better 2027 demand than 2026.

If you want to quantify that, we will look at roughly 600 something between 600 to 650 GW in 2027 versus around 600 GW or slightly below 600 GW in 2026.

Okay. If the 2026 is around 600, that means that you are now looking at your market share globally going down from last year, because your market share would be about 11%, right?

Yes. There are some reasons behind it, right?

First one is we call accessible market is reducing, right? There are certain sizable market is introducing more and more strict barriers, trade barriers or policy barriers, which is not easy to access, right?

The second reason is because the competitions across the manufacturers, where some of the Tier 3, Tier 2 players, they are playing low-price strategy, sacrificing the quality, etc. to attack the market or even protect their own cash flow, which is not what Jinko can do.

Jinko is still taking care of the long-term reputation and qualities. That's why we have to give up some of the low-price deal and protect our own interest.

Breaking it down, when you said about some markets becoming less easy to access, I assume you're talking primarily about the United States. Can you give us a sense of what you expect out of that 65 million gigawatts that you expect this year, roughly what percentage will be the US and what you think going forward longer term your US share will be as a percentage?

Sorry to jump in, but not only US, even for example Europe, they have this kind of rules asking for all the EU-funded projects or financed projects cannot use China-based or Chinese-factored factories. For India, it's a kind of technical barrier, but for a China-based manufacturings, it's not accessible at all as well, together with some other mid- or small-sized of the market as well, like Turkey, like other markets.

I won't name all of them, but definitely US is one of them or one of the big one, but it's not the only one. There's many more because of different reasons, geopolitical or securities.

I see. Okay.

Moving on to another question about credit losses, can you elaborate on what you mean by that and what happened actually in the second quarter?

[Foreign language]

Gener. Rajiv, what are you talking about the credit loss for accounts receivable?

Are you talking about that?

Yes, can you just give us more details on that?

You mean kind of provision impairment, whatever you are looking at, right?

Yes, no you mentioned in your comments that one of the reasons for higher operating expenses in the second quarter was that you experienced some credit losses, and I was just looking for some elaboration. Was it some particular customers who went delinquent?

Oh Rajiv,

let us check. Based on my understanding, it's kind of we didn't have any kind of deteriorated credit from customers, and it's kind of accounting perspective based on the aging, the agings.

Actually, if you look at the operating cash flow, we delivered positive 600 million RMB in the first half of the year. The healthy operating cash flow is one of the key focus on management perspective.

We don't see any significant bad debits or whatever from customer perspective.

Okay. Another question is on you mentioned that the cost of production of the newer product line, the 3.0, remained elevated.

Can you explain some of the reasons why, because we were expecting actually the cost to start to come down as you ramped up? What happened?

The second quarter, we ramp up the new facility, the Tiger Neo 3, and in ramping up stage, it's typically the cost is relatively higher. On top of that, the second quarter, because the first quarter the raw material cost, the silver cost is relatively higher, carry forward to the second quarter, the cost is relatively higher, but it's a kind of combination of the two factors together to result relatively higher cost.

We expect the cost will be lower in the third quarter with the capacity reaching to full operational status, as well as the input cost is relatively lower compared to the second quarter.

Given that you're expecting the ASPs also to be up in the third quarter, are you suggesting that gross margin could bounce up quite nicely in the third quarter?

We did expect gross margin moderate improvement in the third quarter.

Okay. Can you also talk a little bit about Mr.

Xiande Li stepping down from the CEO's position? This is obviously a tough time for the company.

Can you just elaborate on why he's chosen to do it at this time? I think,

David Li, our chairman, is founder. He's always focus on the strategic long-term visions.

I don't believe there's any change because of the change of the chief executive officer, because the JKS is controlling shareholder of Jinko China. The key business of JKS it on top of the controlling shareholder of Jinko China, that is the primary entities to operate the business, and chairman believes this is the right time, JKS, on top of the controlling shareholder business, and doing the strategic investment, because our chairman build up the teams, the strategic investment teams, and five years ago.

There is a strong track record in the last five years, and it is the right time to catch up the massive opportunities in China, not only in the last five years there's a solar and the storage investment opportunity, as well as the AI, robotics, quantum computing, and a lot of math investment opportunities. That is why I think, I think I talked about in the beginning of the conference call.

We like to investors to have take the times to understand, okay, what we have done in the last five years for the strategic investment. Over 10 investments cash out maybe 60%, and there's a very new good investment opportunity the team have invested, including the recent large model, the AI model, Kimi, K3.

Maybe you've heard from the news. We believe there is will be a good opportunity to make a investment return through the JKS strategic investment team platform.

Okay. Moving on to capital spending, can you tell us what the capital spending plan is for this year and how you're thinking about 2027?

Obviously, you're running well below the 100 GW capacity that you have. Should we expect basically very little capital spending in the next two years?

You're correct. It'll be very, very small, minimum.

A minor upgrades, and we don't expect any significant investment. Even if we want to do some in the future we do the local manufacturing in the key countries out of China for the local market, we will do through the joint venture structures.

That will be minimize our export exponence capex as well. That is depending on if the market is getting rebound.

Back to your question, I don't believe is significant. Will be very small, and the maintenance capex in the next two years.

Is the 5 billion number a maintenance capex? Or even less than that?

No. Should be significant lower, maybe 500 million or maybe 1 billion, and it should be very, very small.

I see. Okay.

How much capex is required in the storage business?

The storage business

What

is Storage. Oh, storage, we don't have capacity plan.

Currently we have roughly 5 GWh battery cell and 20 GWh battery pack. We don't have plan to do the capacity expansion.

We would like to take the lighter approach and partner with different suppliers. The key part is the solution, the solution for AIDC, for solution for different case, different projects.

The technical branding and marketing capability and the technical services, that will be the key investment. The investment is on the I think the teams, it's not the equipment.

I see. Okay.

Your business model in storage is basically an asset-light model.

Yes. Yes,

yeah. Yeah.

Now going back to module market share, do you think that in the second quarter also you are number one in the world?

In the first half year, and I think we are still the number one. That is not our target, and the key is we need to get through the cycles and we develop our capabilities, and the volume does not show any capability.

The capability shows, we are able to have more good planning, and we make sure we have more capabilities to select the different customers and different markets and branding and marketing activities. We don't believe the volume see something.

Okay. At what level do you think your, given that some markets are becoming more difficult, as Gener mentioned, at what level do you think your market share globally bottoms out?

At the peak it was around 15% roughly the last couple of years ago, and now you're heading towards 11% to 12%. Where do you think that number bottoms out?

Bottom out. Frankly, I don't have the target number, but I think 10% is a reasonable number for current stage.

The market is go pick up, and we think we should be ready to get more market share.

Okay. Thank you very much.

Thank you.

Thanks management for taking my question. Also congratulations Jimmy to become the CEO of the company.

Would like to follow up on a couple of stuff. The Section 23 232.

Heard there are already quite significant inventory in the US. BNEF is quoting close to 100 GW, not sure if you are aware of it.

Would like to know how much inventory we have to get prepared for the policy change.

We did have preparations and, but it's based on the short-term sales contract, right, in the next two or three months. Typically we will arrange some kind of purchase agreement.

Because there's still a sufficient time, right, two or three months,

and

we will purchase on regular basis. We believe because the cost structure is a little bit higher and we believe the market are able to absorb the potential cost increase.

Understood. How much inventory in the market do you see?

We don't have the information. You mean the module, right?

Yes, yes,

yes.

I think you can check the custom data. Maybe 2, 3 months later, you will see the US custom data, it will have a better understanding about how many or how much MW has been imported.

Understood. Thanks.

Also heard some feedbacks on the Section 337 investigation regarding to the TOPCon patent. Wonder how do you see it, and is it affecting any of the TOPCon sales in the US?

Is that the First Solar patent case?

They have a patent case and also there's a Section 337 investigation. There's some feedback suggesting that this might impact or this might create some problems for selling TOPCon into the US market.

I didn't hear the information or any updates. Again, based our internal, external teams, and we are quite confident in our patent capabilities.

We don't see any disrupting for Jinko so far.

Understood. Regarding to the strategic cooperation with one of the US major players, wonder if you might share the progress on that front.

Because there's a recent announcement of a $10 billion of investment into building solar capacities by that largest player in ESS. What's the progress of our discussion with that player?

We didn't have any progress so far. If any significant improvement, any progress, I think we may take the release of the news.

Globalization is our strategies, cooperation with different partners, not only in United States, in different countries, it's one of our the key area. We like to explore the different opportunities.

If we reach to significant progress, we definitely will share the news.

Understood. My last question is on the ESS business.

I think in the last quarter in the PowerPoint, it showed around 1.42 GWh of ESS shipment POD, while in this quarter, seems the number is revised or I'm not sure if the way of calculating the shipment is different, but it seems that Q1 has a lower number of shipment, whereas Q2 there's 1 GWh plus shipment. It seems the company is reiterating its annual target.

Does it mean that in second half, there will be close to 8 GWh of shipment?

It's second-half year loaded, and because a lot of projects we shift, but we need to go through different stage, including testing, commissioning, and particularly for the large-scale ESS project. We have the confidence we are able to achieve our guidance by the end of the year.

If you look into next year, and third quarter could be we are able to recognize maybe 3 to 4 GWh a quarter next quarter.

Understood. How much was shipped in the first quarter?

Because it seems there's a change in the method of calculation or what, right?

First half we shipped I think 3 GWh, and again, last year we shipped, I think, over 5 GWh, but last year we recognized just 1 GWh. There's a gap.

4 GW is carried forward to this year. Anyway, it's a

[crosstalk]. Understood.

Thank you. Thanks, Charlie, for taking my question.

Thanks Jimmy and Gener. Thank you.

Thank you.