JA Solar Announces First Quarter 2013 Results SHANGHAI, China, May 20, 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 first quarter ended March 31, 2013. First Quarter 2013 Highlights *Shipments were 442.7 MW, consisting of 248.0 MW of modules, 189.5 MW of cells, and 5.2 MW of module and cell tolling, exceeding the high end of the Company's previous guidance of 430 MW and representing a decrease of 11.5% from the fourth quarter of 2012 *Net revenue was RMB 1.7 billion ($270.0 million), compared to RMB 1.7 billion ($268.9 million) in the fourth quarter of 2012 *Gross margin was positive 6.0%, compared to gross margin of negative 4.6% in the fourth quarter of 2012 *Operating loss was RMB 85.2 million ($13.7 million), compared to operating loss of RMB 493.9 million ($79.5 million) in the fourth quarter of 2012 *Net loss was RMB 206.5 million ($33.3 million), of which net loss attributable to ordinary shareholders was RMB 204.3 million ($32.9 million) *Loss per diluted ADS was RMB 5.29 ($0.85), compared to loss per diluted ADS of RMB 15.06 ($2.42) in the fourth quarter of 2012 *Cash and cash equivalents at the end of the quarter were RMB 2.8 billion ($454.9 million), compared to RMB 3.0 billion ($488.1 million) at the end of the fourth quarter of 2012 Mr. Baofang Jin, executive chairman and CEO of JA Solar, commented, "Shipments exceeded the high end of guidance in the first quarter thanks to solid sales across our key markets, particularly in regions with higher ASPs, resulting in improved gross margins and a significant reduction in net loss." Mr. Jin continued, "We performed especially well in Japan, a high-ASP market, which accounted for a record 38% of our module shipments in the quarter, while module sales to China declined from last quarter due to seasonality and our shiftin focus to markets with more attractive margins. We also made further inroads into emerging markets, including in the Asia Pacific, the Middle East, and Africa." "While conditions remain challenging, we are confident that our strength across key markets will continue to drive solid performance, and our emphasis on stringent management of cash and our balance sheet should ensure the long-term success of our business," Mr. Jin added. "Having successfully repaid $119 million of our convertible notes in May, we are continuously evaluating our financing options to ensure we have the cash needed to solidify our market-leading position, while maintaining a healthy balance sheet. Going forward, JA Solar's combination of superior product offerings and prudent financial management will continue to help us further expand our global footprint and customer base." First Quarter 2013 Financial Results Total shipments in the first quarter of 2013 were 442.7 MW, consisting of 248.0 MW of modules, 189.5 MW of cells, and 5.2 MW of module and cell tolling, above the Company's previously provided guidance of 410 MW to 430 MW. This represents an 11.5% decrease from 500 MW in the fourth quarter of 2012 and an increase of 20.9% from 366 MW in the first quarter of 2012. The sequential decline in shipment volumes was primarily due to seasonality. Net revenue in the first quarter of 2013 was RMB 1.7 billion ($270.0 million), an increase of 0.4% from RMB 1.7 billion ($268.9 million) in the fourth quarter of 2012 and an increase of 4.7% from RMB 1.6 billion ($258.0 million) in the first quarter of 2012. The slight sequential increase in net revenue despite the decline in shipment volumes was primarily the result of the Company's shift in focus to markets with higher average selling price. Gross profit in the first quarter of 2013 was RMB 99.9 million ($16.1 million), compared with a gross loss of RMB 77.1 million ($12.4 million) in the fourth quarter of 2012 and gross profit of RMB 33.2 million ($5.4 million) in the first quarter of 2012. Gross margin was positive 6.0% in the first quarter of 2013, compared with negative 4.6% in the fourth quarter of 2012 and positive 2.1% in the first quarter of 2012. Total operating expenses in the first quarter of 2013 were RMB 185.2 million ($29.8 million), compared with RMB 416.8 million ($67.1 million) in the fourth quarter of 2012 and RMB 192.4 million ($31.0 million) in the first quarter of 2012. Total operating expenses in the first quarter of 2013 included an accounts receivable provision of RMB 12.3 million ($2.0 million). Total operating expenses in the fourth quarter of 2012 included an accounts receivable provision of RMB 134.1 million ($21.6 million), and a long-lived asset impairment of RMB 147.1 million ($23.7 million).Research and development expenses in the first quarter of 2013 were RMB 21.4 million ($3.4 million), an increase from RMB 9.4 million ($1.5 million) in the fourth quarter of 2012. The sequential increase in research and development expenses was primarily related to various initiatives implemented to further improve the efficiency and quality of the Company's products. Operating loss in the first quarter of 2013 was RMB 85.2 million ($13.7 million), compared with an operating loss of RMB 493.9 million ($79.5 million) in the fourth quarter of 2012 and an operating loss of RMB 159.1 million ($25.6 million) in the first quarter of 2012. Operating margin was negative 5.1% in the first quarter of 2013, compared with negative 29.6% in the fourth quarter of 2012 and negative 9.9% in the first quarter of 2012. Other loss in the first quarter of 2013 was RMB 17.5 million ($2.8 million), compared with other income of RMB 20.5 million ($3.3 million) in the fourth quarter of 2012 and other income of RMB 32.1 million ($5.2 million) in the first quarter of 2012. Loss per diluted ADS in the first quarter of 2013 was RMB 5.29 ($0.85), compared with loss per diluted ADS of RMB 15.06 ($2.42) in the fourth quarter of 2012 and earnings per diluted ADS of RMB 6.41 ($1.03) in the first quarter of 2012. Liquidity As of March 31, 2013, the Company had cash and cash equivalents of RMB 2.8 billion ($454.9 million), and total working capital of RMB 278.4 million ($44.8 million). Total short-term bank borrowings were RMB 946.6 million ($152.4 million). Total long-term bank borrowings were RMB 3.9 billion ($623.2 million), among which RMB 2.8 billion ($451.4 million) were due in one year. The total face value of the Company's outstanding convertible bonds due 2013 was RMB 724.2 million ($116.6 million) at March 31, 2013. The Company repaid at maturity its convertible notes on May 15, 2013. Business Outlook For the second quarter of 2013, the Company expects total shipments to be between 410 MW and 430 MW. The Company's full year guidance of 1.7 GW to 1.9 GW remains unchanged. Investor Conference Call / Webcast Details A conference call has been scheduled for today, Monday, May 20, 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 64802149. 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 March 29, 2013, which was RMB 6.2108 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 March 29, 2013, 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 Mar. 31, 2012 Dec. 31, 2012 Mar. 31, 2013 Mar. 31, 2013 RMB'000 RMB'000 RMB'000 USD'000 Net revenues 1,602,219 1,670,241 1,677,074 270,025 Cost of sales (1,568,983) (1,747,352) (1,577,129) (253,933) Gross profit/(loss) 33,236 (77,111) 99,945 16,092 Selling, general and (170,010) (260,358) (163,811) (26,375) administrative expenses Impairment loss for property, plant and 0 (147,092) 0 0 equipment Research and development (22,365) (9,362) (21,366) (3,440) expenses Total operating expenses (192,375) (416,812) (185,177) (29,815) Loss from operations (159,139) (493,923) (85,232) (13,723) Interest expense (123,091) (103,427) (98,310) (15,829) Other income/(loss), net 32,116 20,544 (17,540) (2,824) Loss before income taxes (250,114) (576,806) (201,082) (32,376) Income tax (786) (5,327) (5,466) (880) (expenses)/benefit Net loss (250,900) (582,133) (206,548) (33,256) Less: Loss attributable to noncontrolling 0 0 (2,213) (356) interest Net income/(loss) available to ordinary (250,900) (582,133) (204,335) (32,900) shareholders Net lossper share: Basic (1.28) (3.01) (1.06) (0.17) Diluted (1.28) (3.01) (1.06) (0.17) Weighted average number of shares outstanding: Basic 195,706,103 193,300,847 193,300,847 193,300,847 Diluted 195,706,103 193,300,847 193,300,847 193,300,847 Comprehensive loss Net loss (250,900) (582,133) (206,548) (33,256) Foreign currency translation adjustments, (284) 859 1,403 226 net of tax Cash flow hedging loss, (11,755) 0 0 0 net of tax Other comprehensive (12,039) 859 1,403 226 (loss)/income Comprehensive loss (262,939) (581,274) (205,145) (33,030) Loss attributable to 0 0 (2,213) (356) noncontrolling interest Comprehensive loss attributable to ordinary (262,939) (581,274) (202,932) (32,674) shareholders JA Solar Holdings Co., Ltd. Condensed Consolidated Balance Sheets (Unaudited) Dec. 31, Mar. 31, 2012 2013 2013 RMB'000 RMB'000 USD'000 ASSETS Current assets: Cash and cash equivalents 3,031,462 2,825,133 454,874 Restricted cash 194,379 239,481 38,559 Accounts receivable 1,723,090 1,913,280 308,057 Inventories 930,137 1,067,896 171,942 Advances to suppliers 294,653 323,561 52,096 Other current assets 976,658 896,426 144,333 Total current assets 7,150,379 7,265,777 1,169,861 Property and equipment, net 4,447,469 4,432,018 713,599 Advances to suppliers 1,157,555 972,290 156,548 Long-term investment 50,910 50,910 8,197 Deferred issuance cost -- -- -- Other long term assets 326,153 390,494 62,873 Total assets 13,132,466 13,111,489 2,111,078 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term bank borrowings 972,730 946,608 152,413 Accounts payable 1,313,535 1,593,562 256,579 Advances from customers 76,875 105,282 16,951 Current portion of long term bank 1,850,500 2,803,613 451,409 borrowings Convertible Bond 708,548 722,865 116,388 Accrued and other liabilities 966,351 815,471 131,299 Total current liabilities 5,888,539 6,987,401 1,125,039 Convertible Bond -- -- -- Long-term borrowings 2,088,139 1,067,227 171,834 Other long term liabilities 262,964 283,309 45,616 Total liabilities 8,239,642 8,337,937 1,342,489 Total JA Solar Holdings shareholders' 4,892,824 4,694,736 755,899 equity Noncontrolling interest -- 78,816 12,690 Total shareholders' equity 4,892,824 4,773,552 768,589 Total liabilities and shareholders' equity 13,132,466 13,111,489 2,111,078 CONTACT: In China Nick Beswick Brunswick Group Tel: +86-10-5960-8600 E-mail:firstname.lastname@example.org In the U.S. Cindy Zheng Brunswick Group Tel: +1-212-333-3810 E-mail:email@example.com JA Solar Logo
JA Solar Announces First Quarter 2013 Results
Press spacebar to pause and continue. Press esc to stop.