First Quarter 2008 Highlights
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Revenue of RMB 1.12 billion (US$160.0 million), an increase of 234.8% over Q1 2007
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Total gross profit of RMB 235.9 million (US$33.6 million), an increase of 243.0% over Q1 2007
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Gross margin of 21.0% as compared to 20.5% in Q1 2007
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Income from operations of RMB 163.6 million (US$23.3 million), an increase of 181.7% over Q1 2007
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Basic and diluted earnings per ADS of RMB 1.00 (US$0.14) and RMB 0.99 (US$0.14) as compared to RMB 0.53 (US$0.08) and RMB 0.52 (US$0.07) in Q1 2007
- Shipped 51.4 MW of solar cells during the quarter
Outlook for 2008
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Reiterate expected full year 2008 revenue in the range of RMB 7.22 billion (US$1.03 billion) to RMB 8.02 billion (US$1.14 billion)
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New solar cell manufacturing lines in both Ningjin and Yangzhou to commence production on schedule during second half 2008
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Reiterate expected 2008 production output of no less than 340 MW and annual production capacity of no less than 500 MW by the end of 2008
- Gross margin above 20%
HEBEI, China, May 12, 2008 (PRIME NEWSWIRE) -- JA Solar Holdings Co., Ltd. ("JA Solar", "the Company") (Nasdaq:JASO) today reported financial results for the first quarter ended March 31, 2008.
First Quarter 2008 Results
Total revenue for the first quarter 2008 was RMB 1.12 billion (US$160.0 million), an increase of 234.8% from first quarter 2007 revenue of RMB 335.1 million (US$47.8 million), and an increase of 6.7% from fourth quarter 2007 revenue of RMB 1.05 billion (US$150.0 million).
Total gross profit for the first quarter 2008 was RMB 235.9 million (US$33.6 million) compared to RMB 68.8 million (US$9.8 million) in the first quarter 2007, and RMB 222.7 million (US$31.8 million) in the fourth quarter 2007. Gross margin was 21.0% in the first quarter 2008 compared to 20.5% in the first quarter 2007, and 21.2% in the fourth quarter 2007.
Net income available to ordinary shareholders for the first quarter 2008 was RMB 154.5 million (US$22.0 million) compared to net income available to ordinary shareholders of RMB 58.3 million (US$8.3 million) for the first quarter 2007, and net income available to ordinary shareholders of RMB 98.3 million (US$14.0 million) for the fourth quarter 2007.
For the first quarter 2008 basic and diluted earnings per ADS were RMB 1.00 (US$0.14) and RMB 0.99 (US$0.14), respectively. These are compared to basic and diluted earnings per ADS of RMB 0.53 (US$0.08) and RMB 0.52 (US$0.07), respectively, for the same period of 2007; and, RMB 0.65 (US$0.09) and RMB 0.64 (US$0.09), respectively, for the fourth quarter 2007. The first quarter 2008 included share-based compensation expense of RMB 52.2 million (US$7.4 million), foreign exchange losses of RMB 38.6 million (US$5.5 million) and a positive change of RMB 40.7 million (US$5.8 million) in fair value of embedded foreign exchange derivatives, relating to some of our supply agreements. This is compared to share-based compensation expenses of RMB 2.0 million (US$0.3 million) and foreign exchange losses of RMB 6.2 million (US$0.9 million) for the same period of 2007; and, share-based compensation expenses of RMB 61.2 million (US$8.7 million) and foreign exchange losses of RMB 57.3 million (US$8.2 million) for the fourth quarter of 2007.
Capital expenditures were RMB 69.5 million (US$9.9 million) in the first quarter 2008, as compared to RMB 101.2 million (US$14.4 million) in the first quarter 2007, and RMB 128.9 million (US$18.4 million) in the fourth quarter 2007. Depreciation and amortization expenses in the first quarter 2008 were RMB 13.5 million (US$1.9 million), as compared to RMB 5.2 million (US$0.7 million) in the first quarter 2007, and RMB 11.9 million (US$1.7 million) in the fourth quarter 2007.
As of March 31, 2008, JA Solar had cash and cash equivalents of RMB 1.45 billion (US$206.8 million) compared with RMB 1.80 billion (US$256.1 million) at the end of the first quarter 2007, and RMB 1.15 billion (US$163.3 million) at the end of the fourth quarter 2007. Short-term debt decreased to nil at the end of the first quarter 2008 from RMB 200.0 million (US$28.5 million) at the end of the first quarter 2007, and RMB 200.0 million (US$28.5 million) at the end of fourth quarter 2007.Summary of megawatts produced and shipped (includes cell processing service) --------------------------------------------------------------------- Three months ended --------------------------------------------------------------------- Megawatts March 31, 2007 December 31, 2007 March 31, 2008 --------------------------------------------------------------------- Produced 17.6 MW 48.7 MW 49.2 MW --------------------------------------------------------------------- Shipped 14.4 MW 50.2 MW 51.4 MW --------------------------------------------------------------------- Cost per watt excluding wafer cost US$0.234/Wp US$0.198/Wp US$0.200/Wp ---------------------------------------------------------------------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 March 31, 2008, which was RMB 7.012 to US$1.0000. 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 March 31, 2008, or at any other date. The percentages stated in this press release are calculated based on Renminbi.
Samuel Yang, JA Solar's Chief Executive Officer, said, "We are excited about our results for the first quarter, as we achieved continued revenue growth and a strong increase in income from operations. We are experiencing strong market demand this year, and we anticipate continued high customer demand for 2009. To strengthen our supply position, we recently added GCL as another supply partner during the quarter, which gives us further confidence in meeting increased customer demand as we ramp up our production capacity.
"We have made significant progress with our key operational and R&D initiatives. Installation of our new cell lines is on track. We are confident that we will achieve our target of 500 MW of annual production capacity by year-end 2008. Our R&D programs are moving forward and have started delivering results."
JA Solar's CFO, Mr. Daniel Lui said, "Our Q1 results once again demonstrated that our operational execution and disciplined financial management enabled us to achieve impressive revenue growth, increase profitability, and maintain our margin target. As we rapidly increase our size and scale with a continued emphasis on operational and cost efficiencies, we are confident that we will meet our growth targets, maintain profit margins, and grow profitably."
2008 Outlook
Based on current customer demand and market forecasts, we reiterate our expectations for revenue for the full year 2008 in the range of RMB 7.22 billion (US$1.03 billion) to RMB 8.02 billion (US$1.14 billion). Our revenue guidance in RMB remains unchanged. The higher amount in USD is due to a lower USD/RMB exchange rate used in the first quarter 2008 than the fourth quarter 2007. Gross margin for 2008 is expected to remain above 20%.
We reiterate our target for total production output of no less than 340 MW for 2008, with a total annual production capacity of no less than 500 MW by year-end 2008. Currently, we are building ten new solar cell manufacturing lines in Ningjin, Hebei Province. Between June to October 2008, we will add two 25 MW lines per month, totaling 250 MW of new capacity by the end of October. In our new production base in Yangzhou, we will add three 25 MW lines by the end of the fourth quarter 2008, totaling 75 MW of new capacity. The capital expenditures are expected to be RMB 966.8 million (US$137.9 million), primarily for capacity expansion. R&D expense is expected to be RMB 35.1 million (US$5.0 million).
Investor Conference Call / Webcast Details
A conference call has been scheduled for 8:30p.m. on Monday, May 12, 2008 (in Hebei), which will be 8:30a.m. on Monday, May 12 in New York. During the call, time will be set-aside for analysts and interested investors to ask questions of executive officers.
The call may be accessed by dialing 201-689-8560. A live webcast of the conference call will be available on the Company's website at www.jasolar.com. The playback will be available beginning two hours after the live call and will be accessible by dialing 201-612-7415. The account number to access the replay is 3055 and the pass code is 282645.
About JA Solar Holdings Co., Ltd.
Based in Hebei, China, JA Solar Holdings Co., Ltd. is an emerging and fast-growing manufacturer of high-performance solar cells. The Company sells its products to solar module manufacturers who assemble and integrate its solar cells into modules and systems that convert sunlight into electricity. For more information, please visit http://www.jasolar.com.
Forward-looking Statement
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 "will," "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 our registration statement on Form F-1 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..JA Solar Holdings Co., Ltd. Condensed Consolidated Statements of Operations (Unaudited) Three months ended ------------------------------------------------------- March 31, 2007 December 31, 2007 RMB USD RMB USD ------------------------------------------------------- Revenue from sale of goods Solar products to third parties 334,669,240 47,728,072 964,043,903 137,484,869 Solar products to related parties 480,467 68,521 56,581,075 8,069,178 Solar cells processing -- -- 30,946,942 4,413,426 ----------- ----------- ------------- ----------- Total revenues 335,149,707 47,796,593 1,051,571,920 149,967,473 ----------- ----------- ------------- ----------- Cost of revenues Solar products (266,394,778) (37,991,269) (820,159,946) (116,965,195) Solar cells processing -- -- (8,715,419) (1,242,929) ----------- ----------- ------------- ----------- Total cost of revenues (266,394,778) (37,991,269) (828,875,365) (118,208,124) ----------- ----------- ------------- ----------- Gross profit 68,754,929 9,805,324 222,696,555 31,759,349 ----------- ----------- ------------- ----------- Selling, general and administrative expenses (9,772,067) (1,393,621) (88,286,415) (12,590,761) Research and development expenses (920,169) (131,228) (1,461,299) (208,400) ----------- ----------- ------------- ----------- Total operating expenses (10,692,236) (1,524,849) (89,747,714) (12,799,161) ----------- ----------- ------------- ----------- Income from operations 58,062,693 8,280,475 132,948,841 18,960,188 Interest expense (2,815,537) (401,531) (1,497,516) (213,565) Interest income 11,492,103 1,638,919 17,193,244 2,451,974 Loss from sale of investments -- -- -- -- Other income -- -- 1,421,231 202,686 Change in fair value of embedded foreign exchange derivatives -- -- -- -- Foreign exchange gain/(loss) (6,232,712) (888,864) (57,304,623) (8,172,365) ----------- ----------- ------------- ----------- Income before income taxes 60,506,547 8,628,999 92,761,177 13,228,918 Income tax benefit/ (expense) -- -- 5,569,615 794,298 ----------- ----------- ------------- ----------- Net income 60,506,547 8,628,999 98,330,792 14,023,216 ----------- ----------- ------------- ----------- Preferred shares accretion (515,251) (73,481) -- -- Preferred shares beneficial conversion charge -- -- -- -- Allocation of income to participating preferred shareholders (1,648,040) (235,031) -- -- ----------- ----------- ------------- ----------- Net income available to ordinary shareholders 58,343,256 8,320,487 98,330,792 14,023,216 =========== =========== ============= =========== Net income per ordinary shares Basic 0.53 0.08 0.65 0.09 Diluted 0.52 0.07 0.64 0.09 Weighted average number of ordinary shares outstanding: Basic 110,279,889 110,279,889 150,794,647 150,794,647 Diluted 111,228,304 111,228,304 152,508,160 152,508,160 Net income per ADS Basic 0.53 0.08 0.65 0.09 Diluted 0.52 0.07 0.64 0.09 Weighted average number of ADS outstanding: Basic 110,279,889 110,279,889 150,794,647 150,794,647 Diluted 111,228,304 111,228,304 152,508,160 152,508,160 Three months ended ------------------------------ March 31, 2008 RMB USD ------------------------------ Revenue from sale of goods Solar products to third parties 999,077,180 142,481,058 Solar products to related parties 112,106,838 15,987,855 Solar cells processing 10,848,601 1,547,148 ------------- ------------- Total revenues 1,122,032,619 160,016,061 ------------- ------------- Cost of revenues Solar products (882,422,154) (125,844,574) Solar cells processing (3,752,782) (535,194) ------------- ------------- Total cost of revenues (886,174,936) (126,379,768) ------------- ------------- Gross profit 235,857,683 33,636,293 ------------- ------------- Selling, general and administrative expenses (69,605,065) (9,926,564) Research and development expenses (2,696,640) (384,575) ------------- ------------- Total operating expenses (72,301,705) (10,311,139) ------------- ------------- Income from operations 163,555,978 23,325,154 Interest expense (492,443) (70,229) Interest income 11,930,713 1,701,471 Loss from sale of investments (16,823,898) (2,399,301) Other income 3,196,752 455,897 Change in fair value of embedded foreign exchange derivatives 40,722,690 5,807,571 Foreign exchange gain/ (loss) (38,605,360) (5,505,613) ------------- ------------- Income before income taxes 163,484,432 23,314,950 Income tax benefit/ (expense) (9,016,857) (1,285,918) ------------- ------------- Net income 154,467,575 22,029,032 ------------- ------------- Preferred shares accretion -- -- Preferred shares beneficial conversion charge -- -- Allocation of income to participating preferred shareholders -- -- ------------- ------------- Net income available to ordinary shareholders 154,467,575 22,029,032 ============= ============= Net income per ordinary shares Basic 1.00 0.14 Diluted 0.99 0.14 Weighted average number of ordinary shares outstanding: Basic 154,058,500 154,058,500 Diluted 155,773,928 155,773,928 Net income per ADS Basic 1.00 0.14 Diluted 0.99 0.14 Weighted average number of ADS outstanding: Basic 154,058,500 154,058,500 Diluted 155,773,928 155,773,928 Each ADS represents 1 ordinary share JA Solar Holdings Co., Ltd. Condensed Consolidated Balance Sheets December 31, 2007 March 31, 2008 RMB USD RMB USD --------------------------------------------------------- (Audited) (Conversion) (Unaudited) (Conversion) --------------------------------------------------------- ASSETS Current assets Cash and cash equiv- alents 1,145,032,918 163,296,195 1,450,424,757 206,848,939 Available- for-sale securities 803,121,383 114,535,280 109,636,780 15,635,593 Accounts receivables from third party customers 28,819,554 4,110,033 109,994,104 15,686,552 Accounts receivables from related party customers 24,730,689 3,526,909 82,513,518 11,767,473 Inventories 157,334,310 22,437,865 146,681,753 20,918,676 Advances to related party suppliers 389,871,684 55,600,639 366,880,098 52,321,748 Advances to third party suppliers 898,722,659 128,169,233 888,329,454 126,687,030 Other current assets 42,315,074 6,034,665 189,885,379 27,080,060 Deferred tax assets 1,214,246 173,167 -- -- ------------- ----------- ------------- ----------- Total current assets 3,491,162,517 497,883,986 3,344,345,843 476,946,071 ------------- ----------- ------------- ----------- Property and equipment, net 532,011,999 75,871,648 594,441,300 84,774,857 Intangible asset, net 6,687,677 953,747 6,351,589 905,817 Deferred tax assets 4,355,369 621,131 2,979,616 424,931 Other long term assets- advance to suppliers 536,332,174 76,487,760 495,744,218 70,699,404 ------------- ----------- ------------- ----------- Total assets 4,570,549,736 651,818,272 4,443,862,566 633,751,080 ============= =========== ============= =========== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Tax payables 342,025 48,777 30,487,328 4,347,879 Advances from third parties customers 70,285,896 10,023,659 38,724,852 5,522,654 Short-term bank borrowings 200,000,000 28,522,533 -- -- Accounts payable to third parties 10,119,234 1,443,131 35,950,343 5,126,974 Other payables to third parties 16,841,500 2,401,811 18,232,772 2,600,224 Payroll and welfare payable 6,364,403 907,644 5,779,045 824,165 Accrued expenses and other current liabilities 15,279,750 2,179,086 22,104,329 3,152,357 Accounts payable to related parties 70,816 10,099 22,280,886 3,177,537 Other payable to related parties 113,819,404 16,232,088 931,539 132,849 ------------- ----------- ------------- ----------- Total current liabilities 433,123,028 61,768,828 174,491,094 24,884,639 ------------- ----------- ------------- ----------- Accrued warranty cost 929,170 132,511 1,144,927 163,281 ------------- ----------- ------------- ----------- Total liabilities 434,052,198 61,901,339 175,636,021 25,047,920 ------------- ----------- ------------- ----------- Commitment and Contingencies -- -- -- -- ------------- ----------- ------------- ----------- Shareholders' equity: Ordinary shares (US$0.0001 par value; 493,480,000 shares authorized 154,058,000 and 154,058,500 shares issued and outstanding as of December 31, 2007 and March 31, 2008) 123,307 17,585 123,307 17,585 Additional paid-in capital 3,655,194,120 521,276,971 3,709,091,644 528,963,442 Statutory reserve 71,617,912 10,213,621 71,617,912 10,213,621 Accumulated earnings 417,203,191 59,498,458 571,670,765 81,527,491 Accumulated other comprehensive income (7,640,992) (1,089,702) (84,277,083) (12,018,979) ------------- ----------- ------------- ----------- Total shareholders' equity 4,136,497,538 589,916,933 4,268,226,545 608,703,160 ------------- ----------- ------------- ----------- Total liabilities and shareholders' equity 4,570,549,736 651,818,272 4,443,862,566 633,751,080 ============= =========== ============= ===========This news release was distributed by PrimeNewswire, www.primenewswire.com
SOURCE: JA Solar
In China
JA Solar
Victoria Yuan, IR Director
+86-21-6095-5981
ir@jasolar.com
In the U.S.
The Ruth Group
Tyler Wilson
+1-646-536-7018
twilson@theruthgroup.com
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Reiterate expected 2008 production output of no less than 340 MW and annual production capacity of no less than 500 MW by the end of 2008
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New solar cell manufacturing lines in both Ningjin and Yangzhou to commence production on schedule during second half 2008
-
Basic and diluted earnings per ADS of RMB 1.00 (US$0.14) and RMB 0.99 (US$0.14) as compared to RMB 0.53 (US$0.08) and RMB 0.52 (US$0.07) in Q1 2007
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Income from operations of RMB 163.6 million (US$23.3 million), an increase of 181.7% over Q1 2007
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Gross margin of 21.0% as compared to 20.5% in Q1 2007
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Total gross profit of RMB 235.9 million (US$33.6 million), an increase of 243.0% over Q1 2007