JA Solar Announces Third Quarter 2013 Results

JA Solar Announces Third Quarter 2013 Results

SHANGHAI, China, Nov. 26, 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 third quarter ended September 30, 2013.

Third Quarter 2013 Highlights

  *Shipments were 500.2 MW, consisting of 305.0 MW of modules and module
    tolling, and 195.2 MW of cells and cell tolling, above the high end of the
    Company's previous guidance of 470 MW and an increase of 7.9% from the
    second quarter of 2013
  *Net revenue was RMB 1.8 billion ($287.3 million), compared to RMB 1.6
    billion ($258.9 million) in the second quarter of 2013
  *Gross margin was 11.3%, compared to gross margin of 8.1% in the second
    quarter of 2013
  *Operating loss was RMB 31.6 million ($5.2 million), compared to operating
    loss of RMB 33.3 million ($5.4 million) in the second quarter of 2013
  *Net loss, which included a non-cash change in fair value of warrant
    derivatives of RMB 138.3 million ($22.6 million), was RMB 227.0 million
    ($37.1 million), compared to net loss of RMB 132.4 million ($21.6 million)
    in the second quarter of 2013
  *Loss per diluted ADS was RMB 6.77 ($1.11), compared to loss per diluted
    ADS of RMB 3.58 ($0.59) in the second quarter of 2013
  *Cash, cash equivalents and restricted cash at the end of the quarter were
    RMB 2.5 billion ($401.1 million), compared to RMB 2.2 billion ($355.8
    million) at the end of the second quarter of 2013
  *Operating cash flow was positive RMB 623.4 million ($101.9 million),
    compared to positive RMB 503.5 million ($82.3 million) in the second
    quarter of 2013
  *Non-GAAP net loss^1 attributable to the Company's ordinary shareholders in
    the third quarter of 2013 was RMB 90.2 million ($14.7 million), compared
    to a non-GAAP net loss attributable to the Company's ordinary shareholders
    of RMB 138.8 million ($22.7 million) in the second quarter of 2013
  *Non-GAAP loss per diluted ADS was RMB 2.24 ($0.37), compared to Non-GAAP
    loss per diluted ADS of RMB 3.58 ($0.59) in the second quarter of 2013

^1 JA Solar adjusts net income attributable to the Company's ordinary
shareholders to exclude (1) changes in fair value of certain warrants granted
to certain investors in a registered direct offering (the "Offering") closed
on August 16, 2013, (2) fair value of such warrants exceeding net proceeds
from the Offering, and (3) changes in fair value of embedded derivatives
underlying the convertible notes issued in May 2008. Consistent with this
approach, the Company believes that disclosing non-GAAP net loss per share
provides useful supplemental data that, while not a substitute for GAAP net
loss per share, allows for greater transparency in the review ofthe
Company'sfinancial and operational performance.

Mr. Baofang Jin, executive chairman and CEO of JA Solar, commented, "We posted
a solid performance in the third quarter, with shipments exceeding the high
end of our guidance, owing to an improvement in the macro environment and
increased installation activity across key markets. Thanks to a much healthier
supply-demand balance and our continued cost-reduction efforts, our gross
margin returned to double digits, while our prudent management of costs and
receivables allowed us to post strong operating cash flow of over $100
million."

Mr. Jin continued, "We are encouraged by shipment growth across key
geographies. In the third quarter, we made tremendous progress in the U.S.
market, where our module shipments more than tripled sequentially. We also saw
healthy shipment growth in China, where installation activity increased
rapidly as buyers rushed to place orders ahead of an expected reduction in
solar feed-in-tariff rates. Alongside this, we maintained our strong position
in Japan, where we expect to have a healthy growth trajectory going forward.

"Prudent balance sheet management through the downturn in the solar industry
helped to secure the long-term health of our business," Mr. Jin added. "Now
that the market is showing significant signs of improvement, we are confident
that our superior product offering and bankable brand will enable us to
strengthen our market position. Looking to 2014, we will continue to
stringently manage our production costs and focus on gaining market share in
emerging markets. We are confident that this strategy will lead to an overall
improvement in our bottom-line performance in the coming quarters."

Third Quarter 2013 Financial Results

Total shipments in the third quarter of 2013 were 500.2 MW, above the high end
of the Company's previously provided guidance of 450 MW to 470 MW. This
represents a 7.9% increase from 463.7 MW in the second quarter of 2013 and a
19.7% increase from 417.8 MW in the third quarter of 2012.

Shipment breakdown by product (MW)                              
(MW)                       2012Q3 2013Q2 2013Q3 QoQ%  YoY%
Modules and module tolling 246.6  253.9  305.0  20.1% 23.7%
Cells and cell tolling     171.2  209.8  195.2  -7.0% 14.0%
Total                      417.8  463.7  500.2  7.9%  19.7%

                                                      
Shipment breakdown by region (percentage)              
             2012Q3 2013Q2 2013Q3 QoQ(pp) YoY(pp)
China         56.1%  37.8%  38.7%  0.9pp   -17.4pp
APAC ex-China 8.9%   34.2%  39.3%  5.1pp   30.4pp
Europe        27.9%  19.7%  9.3%   -10.4pp -18.6pp
Americas      5.5%   7.9%   10.7%  2.8pp   5.2pp
Others        1.6%   0.4%   2.0%   1.6pp   0.4pp

Revenue in the third quarter of 2013 was RMB 1.8 billion ($287.3 million), an
increase of 11.0% from RMB 1.6 billion ($258.9 million) in the second quarter
of 2013 and an increase of 7.2% from RMB 1.6 billion ($268.0 million) reported
in the third quarter of 2012.

Gross profit in the third quarter of 2013 was RMB 198.7 million ($32.5
million), compared with gross profit of RMB 128.7 million ($21.0 million) in
the second quarter of 2013 and a gross loss of RMB 96.6 million ($15.8
million) in the third quarter of 2012. Gross margin was 11.3% in the third
quarter of 2013, compared with 8.1% in the second quarter of 2013 and negative
5.9% in the third quarter of 2012. The sequential increase in gross margin was
primarily due to the Company's stringent cost-reduction initiatives.

Total operating expenses in the third quarter of 2013 were RMB 230.4 million
($37.6 million), compared with RMB 161.9 million ($26.5 million) in the second
quarter of 2013 and RMB 534.6 million ($87.4 million) in the third quarter of
2012. The increase in total operating expenses quarter over quarter was
primarily due to an accounts receivable provision of RMB 45.7 million ($7.5
million) in the third quarter of 2013 and an increase in transportation
expenses in line with the increase in total shipments.

Operating loss in the third quarter of 2013 was RMB 31.6 million ($5.2
million), compared with an operating loss of RMB 33.3 million ($5.4 million)
in the second quarter of 2013 and an operating loss of RMB 631.3 million
($103.1 million) in the third quarter of 2012. Operating margin in the third
quarter of 2013 was negative 1.8%, compared with negative 2.1% in the second
quarter of 2013 and negative 38.5% in the third quarter of 2012.

Change in fair value of warrant derivatives in the third quarter of 2013 was
RMB 138.3 million ($22.6 million), compared with nil in the second quarter of
2013 and nil in the third quarter of 2012. The change in fair value of warrant
derivatives was related to the change in fair value of certain warrants
granted to certain investors in a registered direct offering closed on August
16, 2013.

Other income in the third quarter of 2013 was RMB 8.2 million ($1.3 million),
compared with other loss of RMB 8.3 million ($1.4 million) in the second
quarter of 2013 and other income of RMB 363.7 million ($59.4 million) in the
third quarter of 2012.

Loss per diluted ADS in the third quarter of 2013 was RMB 6.77 ($1.11),
compared with loss per diluted ADS of RMB 3.58 ($0.59) in the second quarter
of 2013 and loss per diluted ADS of RMB 9.55 ($1.56) in the third quarter of
2012.

Non-GAAP net loss attributable to the Company's ordinary shareholders in the
third quarter of 2013 was RMB 90.2 million (US$14.7 million), compared with a
non-GAAP net loss attributable to the Company's ordinary shareholders of RMB
138.8 million ($22.7 million) in the second quarter of 2013 and a non-GAAP net
loss attributable to the Company's ordinary shareholders of RMB 371.4 million
($60.7 million) in the third quarter of 2012.

Non-GAAP loss per diluted ADS in the third quarter of 2013 was RMB 2.24
($0.37), compared with non-GAAP loss per diluted ADS of RMB 3.58 ($0.59) in
the second quarter of 2013 and non-GAAP loss per diluted ADS of RMB 9.55
($1.56) in the third quarter of 2012.

In the third quarter of 2013, the Company generated operating cash flow of RMB
623.4 million ($101.9 million).

Liquidity

As of September 30, 2013, the Company had cash, cash equivalents and
restricted cash of RMB 2.5 billion ($401.1 million), compared to RMB 2.2
billion ($355.8 million) at the end of the second quarter of 2013.

As of September 30, 2013, total working capital was RMB 695.8 million ($113.7
million), compared with RMB 684.6 million ($111.9 million) as of June 30,
2013.

As of September 30, 2013, total short-term bank borrowings were RMB 983.7
million ($160.7 million), compared to RMB 672.4 million ($109.9 million) as of
June 30, 2013.

As of September 30, 2013, total long-term bank borrowings were RMB 2.9 billion
($467.4 million), of which RMB 1.4 billion ($236.1 million) were due in one
year. This compares to total long-term bank borrowings as of June 30, 2013 of
RMB 3.5 billion ($578.5 million), of which RMB 2.0 billion ($329.0 million)
were due in one year.

Recent Business Developments

On August 14, 2013, the Company announced that it has entered into a
Securities Purchase Agreement with a single institutional investor (the
"Investor") to issue securities in a registered direct offering (the
"Offering"). In the Offering, the Company issued to the Investor American
Depositary Shares, a "Series A-1 Warrant," a "Series A-2 Warrant," a "Series
A-3 Warrant" and a "Series B Warrant." Between November 13, 2013 and November
15, 2013, the Series A-1 Warrant was exercised in full with 2,544,833 American
Depositary Shares issued at a price of $9.43 per ADS, resulting in gross
proceeds of $24.0 million to the Company.

Business Outlook

For the fourth quarter of 2013, the Company expects total cell and module
shipments to be between 500 MW and 550 MW. For the full year 2013, the Company
revises upwards its previous shipment guidance of between 1.7 GW and 1.9 GW to
between 1.9 GW and 1.95 GW.

Investor Conference Call / Webcast Details

A conference call has been scheduled for today, Tuesday, November 26, 2013, at
8:00 a.m. U.S. Eastern Time (9:00 p.m. Beijing/Hong Kong Time). The call may
be accessed by dialing +65-6723-9381 (international), +1-845-675-0437 (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
10762935.

Use of Non-GAAP Financial Measures

To supplement its consolidated financial results presented in accordance with
United States Generally Accepted Accounting Principles ("GAAP"), JA Solar uses
certain non-GAAP financial measures, including non-GAAP net income (loss),
non-GAAP earnings (loss) per share, non-GAAP earnings (loss) per ADS, and
non-GAAP diluted weighted average ordinary shares outstanding, which are
adjusted from the comparable GAAP results to exclude (1) changes in fair value
of certain warrants granted to certain investors in a registered direct
offering (the "Offering") closed on August 16, 2013, (2) fair value of such
warrants exceeding net proceeds from the Offering, and (3) changes in fair
value of embedded derivatives underlying the convertible notes issued in May
2008.

The Company believes that the use of non-GAAP information is useful for
analysts and investors to evaluate JA Solar's current and future performances
based on a more meaningful comparison of net income and diluted net income per
ADS when compared with its peers and historical results from prior periods.
These measures are not intended to represent or substitute numbers as measured
under GAAP. The submission of non-GAAP numbers is voluntary and should be
reviewed together with GAAP results.

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 September 30, 2013, which was RMB
6.1200 to $1.0. 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 September 30, 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,the Company'sexpectations regarding
the expansion ofits manufacturing capacities,its future business
development, andits beliefs regardingits 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
                        Sep. 30, 2012 Jun. 30, 2013 Sep. 30, 2013 Sep. 30,
                                                                   2013
                        RMB'000       RMB'000       RMB'000       USD'000
                                                               
Net revenues             1,639,989     1,584,226     1,758,444     287,327
Cost of sales            (1,736,605)   (1,455,563)   (1,559,720)   (254,856)
Gross (loss)/profit      (96,616)      128,663       198,724       32,471
Selling, general and     (251,202)     (143,291)     (212,639)     (34,745)
administrative expenses
Impairment loss for
property, plant and      (250,697)     0             0             0
equipment
Research and development (32,737)      (18,639)      (17,715)      (2,895)
expenses
Total operating expenses (534,636)     (161,930)     (230,354)     (37,640)
Loss from operations     (631,252)     (33,267)      (31,630)      (5,169)
Interest expense         (129,308)     (79,739)      (56,875)      (9,293)
Change in fair value of  --          --          (138,333)     (22,603)
warrant derivatives
Other income/(loss), net 363,718       (8,281)       8,174         1,336
Loss before income taxes (396,842)     (121,287)     (218,664)     (35,729)
Income tax               25,441        (11,139)      (8,366)       (1,367)
benefit/(expenses)
Net loss                 (371,401)     (132,426)     (227,030)     (37,096)
Fair value of warrants
in excess of net         0             0             (44,396)      (7,254)
proceeds of equity
offering
Less: income
attributable to          0             6,342         1,534         251
noncontrolling interest
Net loss attributable to (371,401)     (138,768)     (272,960)     (44,601)
ordinary shareholders
                                                               
Net lossper share:                                             
Basic                    (1.91)        (0.72)        (1.35)        (0.22)
Diluted                  (1.91)        (0.72)        (1.35)        (0.22)
                                                               
Weighted average number                                         
of shares outstanding:
Basic                    194,417,359   193,594,501   201,665,457   201,665,457
Diluted                  194,417,359   193,594,501   201,665,457   201,665,457
                                                               
Comprehensive loss                                              
Net loss                 (371,401)     (132,426)     (227,030)     (37,096)
Foreign currency
translation adjustments, (1,258)       8,702         (2,447)       (394)
net of tax
Other comprehensive      (1,258)       8,702         (2,447)       (394)
income
Comprehensive loss       (372,659)     (123,724)     (229,477)     (37,490)
Fair value of warrants
in excess of net         0             0             (44,396)      (7,254)
proceeds of equity
offering
Income/(loss)
attributable to          0             6,342         1,534         251
noncontrolling interest
Comprehensive loss
attributable to ordinary (372,659)     (130,066)     (275,407)     (44,995)
shareholders
                                                               
NON-GAAP RECONCILIATION                                         
                                                               
GAAP net loss
attributable to ordinary (371,401)     (138,768)     (272,960)     (44,601)
shareholders
Change in fair value of  0             0             138,333       22,603
warrant derivatives
Fair value of warrants
in excess of net         0             0             44,396        7,254
proceeds of equity
offering
Non-GAAP net loss
attributable to ordinary (371,401)     (138,768)     (90,231)      (14,744)
shareholders
                                                               
Non-GAAP net loss per                                           
share
Basic                    (1.91)        (0.72)        (0.45)        (0.07)
Diluted                  (1.91)        (0.72)        (0.45)        (0.07)
                                                               
Non-GAAP weighted
average number of shares                                        
outstanding:
Basic                    194,417,359   193,594,501   201,665,457   201,665,457
Diluted                  194,417,359   193,594,501   201,665,457   201,665,457

                                                              
JA Solar Holdings Co., Ltd.
Condensed Consolidated Statements of Operations
(Unaudited)
                                    For nine months ended
                                    Sep. 30, 2012 Sep. 30, 2013 Sep. 30, 2013
                                    RMB'000       RMB'000       USD'000
                                                              
Net revenues                         5,048,824     5,019,744     820,220
Cost of sales                        (5,026,071)   (4,592,412)   (750,394)
Gross profit                         22,753        427,332       69,826
Selling, general and administrative  (641,287)     (519,740)     (84,925)
expenses
Impairment loss for property, plant  (250,697)     0             0
and equipment
Research and development expenses    (77,068)      (57,719)      (9,431)
Total operating expenses             (969,052)     (577,459)     (94,356)
Loss from operations                 (946,299)     (150,127)     (24,530)
Interest expense                     (385,919)     (234,924)     (38,386)
Change in fair value of warrant                   (138,333)     (22,603)
derivatives
Other income/(loss), net             347,391       (17,647)      (2,884)
Loss before income taxes             (984,827)     (541,031)     (88,403)
Income tax expenses                  (95,298)      (24,971)      (4,080)
Net loss                             (1,080,125)   (566,002)     (92,483)
Fair value of warrants in excess of  0             (44,396)      (7,254)
net proceeds of equity offering
Less: income attributable to         0             5,663         925
noncontrolling interest
Net loss attributable to ordinary    (1,080,125)   (616,061)     (100,662)
shareholders
                                                              
Net loss per share:                                            
Basic                                (5.53)        (3.14)        (0.51)
Diluted                              (5.53)        (3.14)        (0.51)
                                                              
Weighted average number of shares                              
outstanding:
Basic                                195,289,738  196,228,298  196,228,298
Diluted                              195,289,738  196,228,298  196,228,298
                                                              
Comprehensive loss                                             
Net loss                             (1,080,125)   (566,002)     (92,483)
Foreign currency translation         (640)         7,658         1,251
adjustments, net of tax
Cash flow hedging loss, net of tax   (11,755)      0             0
Other comprehensive (loss)/income    (12,395)      7,658         1,251
Comprehensive loss                   (1,092,520)   (558,344)     (91,232)
Fair value of warrants in excess of  0             (44,396)      (7,254)
net proceeds of equity offering
Income attributable to               0             5,663         925
noncontrolling interest
Comprehensive loss attributable to   (1,092,520)   (608,403)     (99,411)
ordinary shareholders
                                                              
NON-GAAP RECONCILIATION                                        
                                                              
GAAP net loss attributable to        (1,080,125)   (616,061)     (100,662)
ordinary shareholders
Change in fair value of warrant      0             138,333       22,603
derivatives
Change in fair value of embedded
derivatives underlying convertible   (31)          0             0
notes
Fair value of warrants in excess of  0             44,396        7,254
net proceeds of equity offering
Non-GAAP net loss attributable to    (1,080,156)   (433,332)     (70,805)
ordinary shareholders
                                                              
Non-GAAP net loss per share                                    
Basic                                (5.53)        (2.21)        (0.36)
Diluted                              (5.53)        (2.21)        (0.36)
                                                              
Non-GAAP weighted average number of                            
shares outstanding:
Basic                                195,289,738   196,228,298   196,228,298
Diluted                              195,289,738   196,228,298   196,228,298

                                                               
JA Solar Holdings Co., Ltd.
Condensed Consolidated Balance Sheets
(Unaudited)

                                         Dec. 31,    Sep. 30,               
                                         2012        2013        2013
                                         RMB'000     RMB'000     USD'000
                                                               
ASSETS                                                          
Current assets:                                                
Cash and cash equivalents                 3,031,462  1,896,622  309,906
Restricted cash                           194,379    557,919    91,163
Accounts receivable                      1,723,090  1,097,800  179,379
Inventories                               930,137    1,278,547  208,913
Advances to suppliers                     294,653    355,078    58,019
Other current assets                      976,658    867,200    141,699
Total current assets                      7,150,379  6,053,166  989,079
Property and equipment, net               4,447,469  4,192,283  685,014
Advances to suppliers                     1,157,555  858,833    140,332
Long-term investment                      50,910     48,886     7,988
Other long term assets                    326,153    529,506    86,521
Total assets                              13,132,466 11,682,674 1,908,934
LIABILITIES AND SHAREHOLDERS' EQUITY                            
Current liabilities:                                            
Short-term bank borrowings               972,730    983,663    160,729
Accounts payable                         1,313,535  1,771,930  289,531
Advances from customers                   76,875     219,309    35,835
Current portion of long term bank         1,850,500  1,444,664  236,056
borrowings
Convertible Bond                          708,548    --        --
Derivative liabilities-current            --        89,100     14,559
Accrued and other liabilities            966,351    848,656    138,669
Total current liabilities                 5,888,539  5,357,322  875,379
Long-term borrowings                     2,088,139  1,416,000  231,373
Derivative liabilities-non current        --        221,628    36,214
Other long term liabilities               262,964    303,962    49,667
Total liabilities                         8,239,642  7,298,912  1,192,633
Total JA Solar Holdings shareholders'     4,892,824  4,297,070  702,136
equity
Noncontrolling interest                   --        86,692     14,165
Total shareholders' equity                4,892,824  4,383,762  716,301
Total liabilities and shareholders'       13,132,466 11,682,674 1,908,934
equity

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

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