JA Solar Announces Fourth Quarter and Fiscal Year 2012 Results

JA Solar Announces Fourth Quarter and Fiscal Year 2012 Results

SHANGHAI, China, March 25, 2013 (GLOBE NEWSWIRE) -- 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 fourth quarter and fiscal year ended
December 31, 2012.

Fourth Quarter 2012 Highlights

  *Shipments were 500 MW, above the high end of the Company's previous
    guidance of 420 MW, and exceeding the 418 MW shipped in the third quarter
    of 2012
  *Net revenue was RMB 1.7 billion ($268.1 million), an increase of 1.8% from
    RMB 1.6 billion ($263.2 million) in the third quarter of 2012
  *Gross margin was negative 4.6%, compared with negative 5.9% in the third
    quarter of 2012
  *Operating loss was RMB 549.6 million ($88.2 million), compared with
    operating loss of RMB 631.3 million ($101.3 million) in the third quarter
    of 2012
  *Net loss was RMB 637.9 million ($102.4 million), compared with a net loss
    of RMB 371.4 million ($59.6 million) in the third quarter of 2012. Loss
    per diluted ADS^1 was RMB 16.50 ($2.65), compared with a loss per diluted
    ADS of RMB 9.55 ($1.53) in the third quarter of 2012
  *Operating cash flow was negative RMB 27.5 million ($4.4 million), compared
    with positive RMB 176.1 million ($28.2 million) in the third quarter of
    2012
  *Cash and cash equivalents at the end of the quarter were RMB 3.0 billion
    ($486.6 million), compared with RMB 3.4 billion ($548.5 million) at the
    end of the third quarter of 2012

Fiscal Year 2012 Highlights

  *Shipments grew to approximately 1.7 GW, an increase of 0.4% from 1.69 GW
    in fiscal year 2011
  *Net revenue was RMB 6.7 billion ($1.1 billion), compared with net revenue
    of RMB 10.7 billion ($1.7 billion) in fiscal year 2011
  *Gross margin was negative 0.8%, compared with gross margin of positive
    4.3% in fiscal year 2011
  *Operating loss was RMB 1.5 billion ($240.1 million), compared with
    operating loss of RMB 420.5 million ($67.5 million) in fiscal year 2011
  *Net loss was RMB 1.7 billion ($275.8 million) and loss per diluted ADS was
    RMB 44.10 ($7.10), compared with loss per diluted ADS of RMB 16.90 ($2.71)
    in fiscal year 2011
  *Operating cash flow was positive RMB 8.6 million ($1.4 million), compared
    with operating cash flow of positive RMB 364.4 million ($58.5 million) in
    fiscal year 2011
  *Cash and cash equivalents at the end of the year were RMB 3.0 billion
    ($486.6 million), compared with RMB 3.9 billion ($624.2 million) at the
    end of fiscal year 2011

^1 Each ADS represents five ordinary shares, effective on December 10, 2012.

Mr. Baofang Jin, executive chairman and CEO of JA Solar, commented, "2012 was
another challenging year for the solar sector as industry-wide overcapacity
continued to put downward pressure on ASP and margins. In response,we
havebeen readjusting and optimizing our business to ensure we maintain our
market-leading position. In the fourth quarter, shipments exceeded the top end
of our prior guidance, largely due to a better-than-expected performance
across key growth markets. The proportion of modules , including module
tolling, in our overall product mix increased to 64.4% of total shipments and
70.1% of revenue by the fourth quarter."

Mr. Jin continued, "In the fourth quarter, shipments to Japan, where we have
established ourselves as one of the top international suppliers, and China
grew significantly. Shipments to the U.S. declined in the quarter due to
seasonality, although we expect to see increasing demand there in 2013. We're
optimistic that we will continue to make inroads into other markets, including
the Middle East, Australia and Latin America, all of which have promising
long-term potential."

"Moving into 2013, we remain focused on cost reduction and stringent cash
management, while maintaining our leadership position in technology through
continued R&D efforts and manufacturing process optimization. Ultimately, we
believe JA Solar's value proposition, which combines high-quality,
high-efficiency products with prudent financial management, will see us emerge
from this difficult environment as one of the industry's long-term winners."

Fourth quarter 2012 Financial Results

Total shipments in the fourth quarter of 2012 were 500 MW, exceeding the high
end of the Company's previously provided guidance of 380 MW to 420 MW, an
increase from the 418 MW shipped in the third quarter of 2012, and a 25.6%
increase from 398 MW in the fourth quarter of 2011.

Net revenue in the fourth quarter of 2012 was RMB 1.7 billion ($268.1
million), an increase of 1.8% from RMB 1.6 billion ($263.2 million) in the
third quarter of 2012, and a decrease of 14.2% from RMB 1.95 billion ($312.3
million) in the fourth quarter of 2011.

Gross loss in the fourth quarter of 2012 was RMB 77.1 million ($12.4 million),
compared with a gross loss of RMB 96.6 million ($15.5 million) in the third
quarter of 2012 and a gross profit of RMB 9.1 million ($1.5 million) in the
fourth quarter of 2011. Gross margin was negative 4.6% in the fourth quarter
of 2012, compared with negative 5.9% in the third quarter of 2012 and positive
0.5% in the fourth quarter of 2011.

Total operating expenses were RMB 472.5 million ($75.8 million), compared with
RMB 534.6 million ($85.8 million) in the third quarter of 2012 and 496.7
million ($79.7 million) in the fourth quarter of 2011. Total operating
expenses in the fourth quarter of 2012 included an accounts receivable
provision of RMB 134.1 million ($21.5 million), and a long-lived asset
impairment of RMB 147.1 million ($23.6 million) related to the retirement of
300 MW of outdated cell production capacity and 300 MW of outdated module
production capacity.

Operating loss in the fourth quarter of 2012 was RMB 549.6 million ($88.2
million), compared with an operating loss of RMB 631.3 million ($101.3
million) in the third quarter of 2012 and an operating loss of RMB 487.6
million ($78.3 million) in the fourth quarter of 2011. Operating margin was
negative 32.9% in the fourth quarter of 2012, compared with a negative
operating margin of 38.5% in the third quarter of 2012 and a negative
operating margin of 25.1% in the fourth quarter of 2011.

Other income in the fourth quarter of 2012 was RMB 20.5 million ($3.3
million), compared with other income of RMB 363.7 million ($58.4 million) in
the third quarter of 2012 and other income of RMB 208.9 million ($33.5
million) in the fourth quarter of 2011.

Tax expense in the fourth quarter of 2012 was RMB 5.3 million ($0.9 million),
compared with tax benefit of RMB 25.4 million ($4.1 million) in the third
quarter of 2012 and a tax expense of RMB 33.5 million ($5.4 million) in the
fourth quarter of 2011. In June 2012, JA Hebei received a ruling from the
local tax bureau of Xingtai City, Hebei Province (the "Local Tax Bureau"),
that JA Hebei should not have enjoyed the previously grandfathered tax holiday
related to the portion of the taxable income of JA Hebei attributable to a
capital injection made in 2008 (the "2008 Capital Injection"). Consequently,
the Company recorded tax payable of RMB 81.2 million ($13.0 million) at the
end of the second quarter of 2012 and made a subsequent payment in July 2012.
However, the Company believes its tax position related to the 2008 Capital
Injection has been and is stillin compliance with the PRC Corporate Income
Tax Law, and therefore appealed in September 2012. In December 2012, the
Company received a full refund from the Local Tax Bureau, and recognized a tax
benefit of RMB 81.2 million ($13.0 million) offsetting the initial charge. In
February 2013, JA Hebei received a notice from the Local Tax Bureau that JA
Hebei should not have enjoyed the previously approved tax holiday related to
the portion of the taxable income of JA Hebei attributable to a separate
capital injection made in 2007 (the "2007 Capital Injection"). Consequently,
the Company recorded an additional income tax expense of RMB 82.5 million
($13.3 million) at the end of 2012 with respect to the 2007 Capital Injection.

Loss per diluted ADS in the fourth quarter of 2012 was RMB 16.50 ($2.65),
compared with loss per diluted ADS of RMB 9.55 ($1.53) in the third quarter of
2012 and loss per diluted ADS of RMB 12.25 ($1.97) in the fourth quarter of
2011.

In the fourth quarter of 2012, the Company had a negative operating cash flow
of RMB 27.5 million ($4.4 million), compared with a revised positive operating
cash flow of RMB 176.1 million ($28.2 million) in the third quarter of 2012,
after a reclassification of a gain of RMB 369.2 million ($59.3 million)
related to sales proceeds of certain rights pertaining to its share lending
arrangement claim against Lehman Brothers International (Europe) Limited from
operating activities to financing activities.

Fiscal Year 2012 Results

Fiscal year 2012 shipments were 1.7 GW, an increase of 0.4% from 1.69 GW in
fiscal year 2011.

Net revenue in fiscal year 2012 was RMB 6.7 billion ($1.1 billion), a decrease
of 37.4% from RMB 10.7 billion ($1.7 billion) in fiscal year 2011.

Total gross loss in fiscal year 2012 was RMB 54.4 million ($8.7 million) or
0.8% of revenue, compared with gross income of RMB 461.3 million ($74.0
million) or 4.3% of revenue in fiscal year 2011. Operating loss in fiscal year
2012 was RMB 1.5 billion ($240.1 million), compared with operating loss of RMB
420.5 million ($67.5 million) in fiscal year 2011. In fiscal year 2012, net
loss per diluted ADS was RMB 44.10 ($7.10), compared with net loss per diluted
ADS of RMB 16.90 ($2.71) in fiscal year 2011.

In fiscal year 2012, the Company generated a positive operating cash flow of
RMB 8.6 million ($1.4 million) or RMB 0.22 ($0.04) per diluted ADS.

Liquidity

As of December 31, 2012, the Company had cash and cash equivalents of RMB 3.0
billion ($486.6 million) and total working capital of RMB 1.2 billion ($193.6
million). Total short-term bank borrowings and convertible notes due 2013 were
RMB 1.7 billion ($269.9 million). Total long-term bank borrowings were RMB 3.9
billion ($632.2 million), among which RMB 1.9 billion ($297.0 million) were
due in one year. The total face value of outstanding convertible notes due
2013 was RMB 726.4 million ($116.6 million) at December 31, 2012.

Business Outlook

For the first quarter of 2013, the Company expects total cell and module
shipments to be between 410MW and 430MW. For the full year 2013, the Company
expects total cell and module shipments to be between 1.7 GW and 1.9 GW.

Manufacturing Capacity Update

In the fourth quarter of 2012, in an effort to streamline production processes
and increase production efficiency, JA Solar retired 300 MW of cell production
capacity and 300 MW of module production capacity. As of December 31, 2012, JA
Solar had an annual wafer production capacity of 1.0 GW, an annual cell
production capacity of 2.5 GW and an annual module production capacity of 1.8
GW. JA Solar intends to maintain its annualized wafer, cell, and module
capacities in 2013.

Investor Conference Call / Webcast Details

A conference call has been scheduled for today, March 25, 2013, at 8:00 a.m.
U.S. Eastern Time (8:00 p.m. Beijing/Hong Kong Time). The call may be accessed
by dialing +65-6723-9381 (international), +1-718-354-1231 (U.S.), or
+852-2475-0994 (Hong Kong). The passcode is "JA Solar." A live webcast of the
conference call will be available on the Company's website at www.jasolar.com.
A replay of the call will be available beginning two hours after the live call
and will be accessible by dialing +61-2-8199-0299 (international) or
+1-646-254-3697 (U.S.). The passcode for the replay is 21985565.

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 December 31, 2012, which was RMB
6.2301 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 December 31, 2012, 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 1.7 GW
of solar power products in 2012. JA Solar is headquartered in Shanghai, China,
and maintains production facilities in Shanghai, as well as Hebei, Jiangsu and
Anhui provinces.

For more information, please visit www.jasolar.com.

JA Solar Holdings Co., Ltd.
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
                        
                        For three months ended
                        Dec. 31, 2011 Sep. 30, 2012 Dec. 31, 2012 Dec. 31,
                                                                   2012
                        RMB'000       RMB'000       RMB'000       USD'000
                                                               
Net revenues             1,945,724     1,639,989     1,670,241     268,092
Cost of sales            (1,936,616)   (1,736,605)   (1,747,352)   (280,469)
Gross profit/(loss)      9,108         (96,616)      (77,111)      (12,377)
Selling, general and     (170,084)     (251,202)     (316,079)     (50,734)
administrative expenses
Impairment loss for
property, plant and      (303,068)     (250,697)     (147,092)     (23,610)
equipment
Research and development (23,550)      (32,737)      (9,362)       (1,503)
expenses
Total operating expenses (496,702)     (534,636)     (472,533)     (75,847)
Loss from operations     (487,594)     (631,252)     (549,644)     (88,224)
Interest expense         (117,492)     (129,308)     (103,427)     (16,601)
Other income             208,915       363,718       20,544        3,298
Loss before income taxes (396,171)     (396,842)     (632,527)     (101,527)
Income tax               (33,478)      25,441        (5,327)       (855)
(expenses)/benefit
Net loss                 (429,649)     (371,401)     (637,854)     (102,382)
                                                               
Net lossper share:                                             
Basic                    (2.45)        (1.91)        (3.30)        (0.53)
Diluted                  (2.45)        (1.91)        (3.30)        (0.53)
                                                               
Weighted average number                                         
of shares outstanding:
Basic                    175,522,534   194,417,359   193,300,847   193,300,847
Diluted                  175,522,534   194,417,359   193,300,847   193,300,847
                                                               
Comprehensive loss                                              
Net loss                 (429,649)     (371,401)     (637,854)     (102,382)
Foreign currency
translation adjustments, 2,058         (1,258)       859           138
net of tax
Cash flow hedging loss,  (15,201)      0             0             0
net of tax
Other comprehensive      (13,143)      (1,258)       859           138
(loss)/income
Comprehensive loss       (442,792)     (372,659)     (636,995)     (102,244)


JA Solar Holdings Co., Ltd.
Condensed Consolidated Statements of Operations
(Unaudited)
                                    
                                    For twelve months ended
                                    Dec. 31, 2011 Dec. 31, 2012 Dec. 31, 2012
                                    RMB'000       RMB'000       USD'000
                                                              
Net revenues                         10,732,854    6,719,065     1,078,484
Cost of sales                        (10,271,521)  (6,773,423)   (1,087,209)
Gross profit/(loss)                  461,333       (54,358)      (8,725)
Selling, general and administrative  (509,832)     (957,366)     (153,668)
expenses
Impairment loss for property, plant  (303,068)     (397,789)     (63,849)
and equipment
Research and development expenses    (68,948)      (86,429)      (13,873)
Total operating expenses             (881,848)     (1,441,584)   (231,390)
Loss from operations                 (420,515)     (1,495,942)   (240,115)
Interest expense                     (373,710)     (489,346)     (78,545)
Other income                         279,950       367,935       59,058
Loss before income taxes             (514,275)     (1,617,353)   (259,602)
Income tax expenses                  (57,823)      (100,625)     (16,151)
Loss from continuing operations      (572,098)     (1,717,978)   (275,753)
Income from discontinued operations  7,753         0             0
Net loss                             (564,345)     (1,717,978)   (275,753)
                                                              
Loss per share from continuing                                 
operations:
Basic                                (3.43)        (8.82)        (1.42)
Diluted                              (3.42)        (8.82)        (1.42)
                                                              
Income per share from discontinued                             
operations:
Basic                                0.05          0.00          0.00
Diluted                              0.04          0.00          0.00
                                                              
Net loss per share:                                            
Basic                                (3.38)        (8.82)        (1.42)
Diluted                              (3.38)        (8.82)        (1.42)
                                                              
Weighted average number of shares                              
outstanding:
Basic                                167,101,076  194,788,429  194,788,429
Diluted                              167,101,076  194,788,429  194,788,429
                                                              
Comprehensive loss                                             
Net loss                             (564,345)     (1,717,978)   (275,753)
Foreign currency translation         1,181         218           35
adjustments, net of tax
Cash flow hedging gain/(loss), net   9,428         (11,755)      (1,887)
of tax
Other comprehensive gain/(loss)      10,609        (11,537)      (1,852)
Comprehensive loss                   (553,736)     (1,729,515)   (277,606)


JA Solar Holdings Co., Ltd.
Condensed Consolidated Balance Sheets
(Unaudited)
                                                                 
                                           Dec. 31,    Dec. 31,
                                           2011        2012        2012
                                           RMB'000     RMB'000     USD'000
                                           
ASSETS                                                            
Current assets:                                                  
Cash and cash equivalents                   3,889,092  3,031,462  486,583
Restricted cash                             88,632     194,379    31,200
Accounts receivable                        1,244,904  1,723,090  276,575
Inventories                                 730,635    930,137    149,297
Advances to suppliers                       435,657    266,403    42,761
Other current assets                        1,320,202  976,658    156,764
Total current assets                        7,709,122  7,122,129  1,143,180
Property and equipment, net                 5,099,208  4,447,469  713,868
Advances to suppliers                       1,452,920  1,157,555  185,800
Long-term investment                        94,411     50,910     8,172
Deferred issuance cost                      67,531     --        --
Other long term assets                      312,407    326,153    52,351
Total assets                                14,735,599 13,104,216 2,103,371
LIABILITIES AND SHAREHOLDERS' EQUITY                              
Current liabilities:                                              
Short-term bank borrowings                 529,906    972,730    156,134
Accounts payable                           725,093    1,163,274  186,718
Advances from customers                     320,277    76,875     12,339
Notes payables                              --        122,011    19,584
Current portion of long term bank           885,000    1,850,500  297,026
borrowings
Convertible Bond                            --        708,548    113,730
Accrued and other liabilities              865,012    1,022,072  164,054
Total current liabilities                   3,325,288  5,916,010  949,585
Convertible Bond                            1,238,485  --        --
Long-term borrowings                       3,461,916  2,088,139  335,169
Other long term liabilities                 161,241    262,964    42,209
Total liabilities                           8,186,930  8,267,113  1,326,963
Commitment and Contingencies                                      
Shareholders' equity                        6,548,669  4,837,103  776,408
Total liabilities and shareholders' equity  14,735,599 13,104,216 2,103,371

CONTACT: In China

         Nick Beswick
         Brunswick Group
         Tel: +86-10-5960-8600
         E-mail: jasolar@brunswickgroup.com

         In the U.S.

         Cindy Zheng
         Brunswick Group
         Tel: +1-212-333 3810
         E-mail: jasolar@brunswickgroup.com

JA Solar Logo