BEIJING, Aug. 17, 2016 -- JA Solar Holdings Co., Ltd. (Nasdaq:JASO) ("JA Solar" or the
"Company"), one of the world's largest manufacturers of
high-performance solar power products, today announced its unaudited financial
results for its second quarter ended June 30, 2016.
Second Quarter 2016 Highlights
Total shipments
were 1,380.8 megawatts ("MW"), consisting of 1,229.3 MW of modules
and cells to external customers, and 151.5 MW of modules to the Company's own
downstream projects. External shipments were up +55.5% y/y and up +18.4%
sequentially
Shipments of
modules and module tolling were 1,134.2 MW, an increase of
+58.1% y/y and an increase of +23.4% sequentially
Shipments of cells
and cell tolling were 95.1MW, an increase of +29.6% y/y
and a decrease of 20.0% sequentially
Net revenue was
RMB 4.1 billion ($619.0 million), an increase of +51.9% y/y and an increase of
+18.6% sequentially
Gross margin was
15.3%, a decrease of 110 basis points y/y and a decrease of 130 basis points
sequentially
Operating profit
was RMB 188.0 million ($28.3 million), compared to RMB 156.1 million ($23.5
million) in the second quarter of 2015, and RMB 223.3 million ($33.6 million)
in the first quarter of 2016
Net income was
RMB 164.1 million ($24.7 million), compared to RMB 136.0 million ($20.5
million) in the second quarter of 2015, and RMB 158.0 million ($23.8 million)
in the first quarter of 2016
Earnings per
diluted ADS were RMB 2.87 ($0.43), compared to RMB 2.26 ($0.34) in the second
quarter of 2015, and RMB 2.74 ($0.41) in the first quarter of 2016
Cash and cash
equivalents were RMB 2.0 billion ($303.0 million), a decrease of RMB 321.0
million ($48.3 million) during the quarter
Non-GAAP
earnings1 per diluted ADS were RMB 2.04 ($0.31), compared to RMB 1.67 ($0.25)
in the second quarter of 2015, and RMB 2.33 ($0.35) in the first quarter of
2016
Mr. BaofangJin, Chairman and CEO of
JA Solar, commented, "Second quarter results were in line with our
expectations, with shipments and revenue growing over 50% year-over-year.We are also encouraged by our downstream
project development achievements as we successfully connected approximately 250
MW of solar projects to the grid in the quarter.As expected, China was our strongest
market in the quarter, driven by accelerated activity ahead of subsidy
reductions that occurred this summer."
Mr. Jin continued, "While regulatory change should slow
the domestic Chinese market in the second half of the year, we believe our
balanced global footprint and flexible business model will allow us to adjust
to evolving market conditions.We
are carefully controlling capital expenditures and staffing, and selling effort
is focused on more robust markets outside of China. Our project business
provides flexibility in our business model, since we can accelerate or slow
down activity in order to balance demand for our modules.The JA team remains focused on executing
our business strategy to provide our customers with high-quality products in
2016 and beyond."
All shipment and
financial figures refer to the quarter ended June 30, 2016, unless otherwise
specified.All "year over year"
or "y/y" comparisons are against the quarter ended June 30, 2015.All "sequential" comparisons
are against the quarter ended March 31, 2016.
Total shipments
were 1,380.8 MW, largely in line with the low end of the previously announced
guidance range of 1,400 to 1,500 MW. External shipments of 1,229.3 MW increased
55.5% year-over-year and increased 18.4% sequentially.
Net revenue was RMB 4.1 billion ($619.0
million), an increase of 51.9% y/y and an increase of 18.6% sequentially.
Gross profit of RMB 628.3 million ($94.5
million) increased 41.4% y/y and increased 9.2% sequentially. Gross margin was
15.3%, which compares to 16.4% in the year-ago quarter, and 16.6% in the first
quarter of 2016.
Total operating expenses of RMB 440.3 million
($66.3 million) were 10.7% of revenue. This compares to operating expenses of
10.6% of revenue in the year-ago quarter, and 10.1% of revenue in the first
quarter of 2016.
Operating profit was RMB 188.0 million ($28.3
million), compared to RMB 156.1 million ($23.5 million) in the year-ago
quarter, and RMB 223.3 million ($33.6 million) in the first quarter of 2016.
Operating margin was 4.6%, compared with 5.8% in the prior year period and 6.4%
in the previous quarter.
Interest expense was RMB 68.8 million ($10.4
million), compared to RMB 58.6 million ($8.8 million) in the year-ago quarter,
and RMB 67.3 million ($10.1 million) in the first quarter of 2016.
The change in fair value of warrant
derivatives was gain of RMB 47.4 million ($7.1 million), compared with RMB 35.1
million ($5.3 million) in the year-ago quarter, and positive RMB 23.4 million
($3.5 million) in the first quarter of 2016. The warrants were issued on August
16, 2013 in conjunction with the Company's $96 million registered direct
offering, and expired on August 16, 2016. The non-cash gain was mainly due to a
decline in the time value of the warrants as they approached expiry.In addition, the value of the warrants
was impacted by the decline in the price of the company's ADS during the
quarter.
Earnings per diluted ADS were RMB 2.87
($0.43), compared to earnings per diluted ADS of RMB 2.26 ($0.34) in the
year-ago quarter, and earnings per diluted ADS of RMB 2.74 ($0.41) in the first
quarter of 2016.
Liquidity
As of June 30, 2016, the Company had cash and
cash equivalents of RMB 2.0 billion ($303.0 million), and total working capital
of RMB 1.1 billion ($162.2 million).Total short-term borrowings were RMB 2.8 billion ($426.6 million). Total
long-term borrowings were RMB 3.3 billion ($489.3 million), of which RMB 630.3
million ($94.8 million) were due in one year.
Business Outlook
For the third quarter of 2016, the Company
expects total cell and module shipments to be in the range of 1,200 to 1,300
MW.For the full year, the Company
reiterates its prior shipment guidance of 5.2 to 5.5 GW, including 250 to 300
MW of module shipments to the Company's downstream projects. Revenues will not
be recognized for the modules shipped to the Company's downstream projects as required by U.S. GAAP.
Currency Convenience Translation
The conversion of Renminbi into U.S. dollars
in this release, made solely for the convenience of the reader, is based on the
noon buying rate in the city of New York for cable transfers of Renminbi as
certified for customs purposes by the Federal Reserve Bank of New York as of
June 30, 2016, which was RMB 6.6459 to $1.00. No representation is intended to
imply that the Renminbi amounts could have been, or could be, converted,
realized or settled into U.S. dollars at that rate on June 30, 2016, or at any
other date. The percentages stated in this press release are calculated based
on Renminbi.
Forward-looking Statements
This press release contains forward-looking
statements within the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements can be
identified by words such as "may," "expect,"
"anticipate," "aim," "intend," "plan,"
"believe," "estimate," "potential,"
"continue," and other similar statements. Statements other than
statements of historical facts in this announcement are forward-looking
statements, including but not limited to, our expectations regarding the
expansion of our manufacturing capacities, our future business development, and
our beliefs regarding our production output and production outlook. These
forward-looking statements involve known and unknown risks and uncertainties
and are based on current expectations, assumptions, estimates and projections
about the Company and the industry. Further information regarding these and
other risks is included in Form 20-F and other documents filed with the
Securities and Exchange Commission. The Company undertakes no obligation to
update forward-looking statements, except as may be required by law. Although the
Company believes that the expectations expressed in these forward-looking
statements are reasonable, it cannot assure you that its expectations will turn
out to be correct, and investors are cautioned that actual results may differ
materially from the anticipated results.
About JA Solar
Holdings Co., Ltd.
JA Solar Holdings Co., Ltd. is a leading
manufacturer of high-performance solar power products that convert sunlight
into electricity for residential, commercial, and utility-scale power
generation. The Company is one of the world's largest producers of solar power products. Its standard
and high-efficiency product offerings are among the most powerful and
cost-effective in the industry. The Company distributes products under its own
brand and also produces on behalf of its clients. The Company shipped 4.0 GW of
solar power products in 2015. JA Solar is headquartered in Beijing, China, and
maintains production facilities in Shanghai, Hebei, Jiangsu and Anhui provinces
in China, as well as Penang, Malaysia.
For more information, please visit
www.jasolar.com.
JA Solar Holdings Co.,
Ltd.
Condensed Consolidated
Statements of Operations and Comprehensive Income
Note: JA Solar excludes net income
attributable to the participating warrant holder of RMB 29.2 million (US$4.4
million) from the numerator of basic EPS in the second quarter of 2016.
