JA Solar Announces First Quarter 2014 Results

JA Solar Announces First Quarter 2014 Results

SHANGHAI, China, May 8, 2014 (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, 2014.

First Quarter 2014 Highlights

  *Shipments were 638.1 megawatts ("MW"), consisting of 388.0 MW of modules
    and 250.1 MW of cells and cell tolling, above the high end of the
    Company's previous guidance of 610 MW
  *Net revenue was RMB 2.3 billion ($366.0 million), an increase of 5.2% from
    the fourth quarter of 2013 and an increase of 35.7% from the first quarter
    of 2013
  *Gross margin was 16.7%, compared with 15.5%in the fourth quarter of 2013
    and 6.0% in the first quarter of 2013
  *Operating profit was RMB 160.9 million ($25.9 million), an increase of
    173.2% from an operating profit of RMB 58.9 million ($9.5 million) in the
    fourth quarter of 2013, and compared with an operating loss of RMB 85.2
    million ($13.7 million) in the first quarter of 2013
  *Net income was RMB 85.0 million ($13.7 million), compared with a net
    income of RMB 139.5 million ($22.4 million) in the fourth quarter of 2013.
    Earnings per diluted ADS were RMB 1.41 ($0.23), compared with a profit per
    diluted ADS of RMB 1.92 ($0.31) in the fourth quarter of 2013
  *Cash and cash equivalents at the end of the quarter were RMB 1.9 billion
    ($313.4 million), compared with RMB 2.1 billion ($341.0 million) at the
    end of the fourth quarter of 2013
  *Operating cash flow was positive RMB 198.2 million ($31.9 million),
    compared with positive RMB 366.1 million ($58.9 million) in the fourth
    quarter of 2013
  *Non-GAAP net earnings^1 attributable to the Company's ordinary
    shareholders were RMB 116.2 million ($18.7 million), compared to a
    non-GAAP net earnings attributable to the Company's ordinary shareholders
    of RMB 55.1 million ($8.9 million) in the fourth quarter of 2013
  *Non-GAAP earnings per diluted ADS in the first quarter of 2014 were RMB
    1.99 ($0.32), compared to Non-GAAP loss per diluted ADS of RMB 0.94
    ($0.15) in the fourth 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 of the Company's
financial and operational performance.

Mr. Baofang Jin, chairman and CEO of JA Solar, commented, "I am proud to
report the second consecutive profitable quarter for JA Solar since exiting
the industry downturn. We exceeded our shipment guidance while improving
revenue, gross margin and operating profit both sequentially and
year-over-year. This performance was especially notable in a seasonally slow
quarter for the industry. The solid results this quarter demonstrate the
resiliency of our business model and our ability to quickly adapt to the most
attractive product and geographic mix. "

Mr. Jin continued, "We continue to improve our margins by richening our mix of
business while delivering further cost reductions. Module volume increased to
over 60% of total shipments during the quarter, and our penetration of
downstream project opportunities remained on track. Our performance in key
geographies was a highlight of the quarter. Shipments to Japan increased
sequentially, while demand in Europe remained healthy as our high-power
products became increasingly competitive in the market. While shipments to
China were impacted by seasonality this quarter, we expect a strong second
half when many SOE-owned utility projects begin construction."

"We remain optimistic for the balance of 2014, both for the sustainability of
the industry recovery, and for our ability to solidify a leadership position
within the industry. We see opportunities to grow in emerging markets such as
Latin America and the Middle East, in expanding our downstream project
pipelines, and in taking market share in our home market here in China.
Therefore, we are confident that we can achieve our previously announced 2014
shipment objective of 2.7 to 2.9 GW."

First Quarter 2014 Financial Results

Total shipments in the first quarter of 2014 were 638.1 MW, exceeding the high
end of the Company's previously provided guidance of 610 MW, representing a
4.1% decrease from the 665.5 MW shipped in the fourth quarter of 2013 and a
44.1% increase from 442.7 MW in the first quarter of 2013. In addition, in the
first quarter of 2014, solar module shipment used in the Company's solution
business was 23.7 MW.

Shipment breakdown by product (MW)
                          2013Q1 2013Q4 2014Q1 QoQ%   YoY%
Modules and module tolling 251.5  363.3  388.0  6.8%   54.3%
Cells and cell tolling     191.2  302.1  250.1  -17.2% 30.8%
Total                      442.7  665.5  638.1  -4.1%  44.1%


Shipment breakdown by region (percentage)
             2013Q1 2013Q4 2014Q1 QoQ(pp) YoY(pp)
China         39.0%  53.2%  26.0%  -27.2pp -13.0pp
APAC ex-China 29.3%  31.7%  52.8%  21.1pp  23.5pp
Europe        26.8%  8.5%   14.8%  6.3pp   -12.0pp
Americas      0.6%   5.9%   4.1%   -1.8pp  3.5pp
Others        4.3%   0.7%   2.3%   1.6pp   -2.0pp

Net revenue in the first quarter of 2014 was RMB 2.3 billion ($366.0 million),
an increase of 5.2% from RMB 2.2 billion ($348.0 million) in the fourth
quarter of 2013, and an increase of 35.7% from RMB 1.7 billion ($269.8
million) in the first quarter of 2013.

Gross profit in the first quarter of 2014 was RMB 380.6 million ($61.2
million), compared with a gross profit of RMB 335.0 million ($53.9 million) in
the fourth quarter of 2013 and a gross profit of RMB 99.9 million ($16.1
million) in the first quarter of 2013. Gross margin was positive 16.7% in the
first quarter of 2014, compared with positive 15.5% in the fourth quarter of
2013 and positive 6.0% in the first quarter of 2013.

Total operating expenses were RMB 219.7 million ($35.3 million), compared with
RMB 276.1 million ($44.4 million) in the fourth quarter of 2013 and RMB 185.2
million ($29.8 million) in the first quarter of 2013. The sequential decrease
in operating expense was primarily due to an accounts receivable provision of
RMB 33.2 million ($5.3 million) in the fourth quarter of 2013.

Operating profit in the first quarter of 2014 was RMB 160.9 million ($25.9
million), compared with an operating profit of RMB 58.9 million ($9.5 million)
in the fourth quarter of 2013 and an operating loss of RMB 85.2 million ($13.7
million) in the first quarter of 2013. Operating margin was positive 7.1% in
the first quarter of 2014, compared with a positive operating margin of 2.7%
in the fourth quarter of 2013 and a negative operating margin of 5.1% in the
first quarter of 2013.

Change in fair value of warrant derivatives in the first quarter of 2014 was
negative RMB 33.6 million ($5.4 million), compared with positive RMB 87.3
million ($14.0 million) in the fourth quarter of 2013 and nil in the first
quarter of 2013. The change in fair value of warrants was a combined result of
change in share price, volatility, expected term to maturity, risk-free rate
and credit spread.Fair value loss in the first quarter of 2014 was mainly due
to an increase in the Company's share price as of March 31, 2014 from that on
December 31, 2013.

Other income in the first quarter of 2014 was RMB 29.1 million ($4.7 million),
compared with other income of RMB 4.1 million ($0.7 million) in the fourth
quarter of 2013 and other loss of RMB 17.5 million ($2.8 million) in the first
quarter of 2013.

Tax expense in the first quarter of 2014 was RMB 14.7 million ($2.4 million),
compared with tax benefit of RMB 40.0 million ($6.4 million) in the fourth
quarter of 2013 and a tax expense of RMB 5.5 million ($0.9 million) in the
first quarter of 2013.

Earnings per diluted ADS in the first quarter of 2014 was RMB 1.41 ($0.23),
compared with earnings per diluted ADS of RMB 1.92 ($0.31) in the fourth
quarter of 2013 and loss per diluted ADS of RMB 5.29 ($0.85) in the first
quarter of 2013.

In the first quarter of 2014, the Company had a positive operating cash flow
of RMB 198.2 million ($31.9 million).

Liquidity

As of March 31, 2014, the Company had cash and cash equivalents of RMB 1.9
billion ($313.4 million) and total working capital of RMB 1.4 billion ($225.6
million). Total short-term borrowings were RMB 1.1 billion ($182.4 million).
Total long-term borrowings were RMB 2.3 billion ($366.7 million), of which RMB
736.8 million ($118.5 million) were due in one year.

Business Outlook

For the second quarter of 2014, the Company expects total cell and module
shipments to be between 670 MW and 700 MW. For the full year 2014, the Company
the Company reiterates its full year cell and module shipments guidance of
between 2.7 GW and 2.9 GW, which includes 200 MW of module shipments to the
Company's downstream projects.

Investor Conference Call / Webcast Details

The Company further discuss its results on a conference call to be held on
Thursday, May 8, 2014, at 8:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing/Hong
Kong Time). Dial-in details for the live conference call are as follows:

International: +65-6723-9381

U.S.: +1-845-675-0437

Hong Kong: +852-2475-0994

Passcode: JA Solar

A live webcast of the conference call will be available on the Company's
website at http://www.jasolar.com.

A replay of the call will be available beginning two hours after the live
call. The dial-in details for the replay are as follows:

International: + 61-2-8199-0299

United States: +1-855-452-5696

Passcode: 40722623

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 31, 2014, which was RMB
6.2164 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 31, 2014, 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 2.1 GW
of solar power products in 2013. 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, 2013 Dec. 31, 2013 Mar. 31, 2014 Mar. 31,
                                                                   2014
                        RMB'000       RMB'000       RMB'000       USD'000
                                                               
Net revenues             1,677,074     2,163,044     2,275,510     366,049
Cost of sales            (1,577,129)   (1,828,087)   (1,894,952)   (304,831)
Gross profit             99,945        334,957       380,558       61,218
Selling, general and     (163,811)     (245,496)     (191,564)     (30,816)
administrative expenses
Research and development (21,366)      (30,587)      (28,129)      (4,525)
expenses
Total operating expenses (185,177)     (276,083)     (219,693)     (35,341)
(Loss)/income from       (85,232)      58,874        160,865       25,877
operations
Interest expense         (98,310)      (50,694)      (56,767)      (9,132)
Change in fair value of  --          87,259        (33,555)      (5,398)
warrant derivatives
Other income, net        (17,540)      4,073         29,124        4,685
(Loss)/income before     (201,082)     99,512        99,667        16,032
income taxes
Income tax               (5,466)       39,997        (14,656)      (2,358)
(expenses)/benefit
Net (loss)/income        (206,548)     139,509       85,011        13,674
Less: (loss)/income
attributable to          (2,213)       (2,875)       2,377         382
noncontrolling interest
Net (loss)/income
attributable to JA Solar (204,335)     142,384       82,634        13,292
Holdings
                                                               
Net (loss)/incomeper
share attributable to                                           
ordinary shareholders:
Basic (Note)             (1.06)        0.49          0.28          0.05
Diluted                  (1.06)        0.38          0.28          0.05
                                                               
Weighted average number                                         
of shares outstanding:
Basic                   193,300,847   216,365,357   228,738,374   228,738,374
Diluted                  193,300,847   218,404,795   228,738,374   228,738,374
                                                               
Comprehensive                                                   
(loss)/income
Net (loss)/income        (206,548)     139,509       85,011        13,674
Foreign currency
translation adjustments, 1,403         1,849         (5,857)       (942)
net of tax
Other comprehensive      1,403         1,849         (5,857)       (942)
income/(loss)
Comprehensive            (205,145)     141,358       79,154        12,732
(loss)/income
(Loss)/income
attributable to          (2,213)       (2,875)       2,377         382
noncontrolling interest
Comprehensive
(loss)/income            (202,932)     144,233       76,777        12,350
attributable to JA Solar
Holdings
                                                               
NON-GAAP RECONCILIATION                                         
                                                               
GAAP net (loss)/income
attributable to JA Solar (204,335)     142,384       82,634        13,292
Holdings
Change in fair value of  0             (87,259)      33,555        5,398
warrant derivatives
Non-GAAP net
(loss)/income            (204,335)     55,125        116,189       18,690
attributable to JA Solar
Holdings
                                                               
Non-GAAP net
(loss)/income per share                                         
attributable to ordinary
shareholders:
Basic                    (1.06)        0.19          0.40          0.06
Diluted                  (1.06)        0.19          0.40          0.06
                                                               
Non-GAAP weighted
average number of shares                                        
outstanding:
Basic                    193,300,847   216,365,357   228,738,374   228,738,374
Diluted                  193,300,847   218,404,795   228,738,374   228,738,374
                                                               
Note:JA Solar excludes net income attributable to the participating warrant
holder of RMB 18.0 million (US$2.9 million) from the numerator of basic EPS in
the first quarter 2014.


JA Solar Holdings Co., Ltd.
Condensed Consolidated Balance Sheets
(Unaudited)
                                                                 
                                           Dec. 31,    Mar. 31,
                                           2013        2014        2014
                                           RMB'000     RMB'000     USD'000
                                           
ASSETS                                                            
Current assets:                                                  
Cash and cash equivalents                   2,119,740  1,948,052  313,373
Restricted cash                             588,413    679,693    109,339
Accounts receivable                        1,044,111  1,169,388  188,113
Inventories                                 1,347,094  1,510,368  242,965
Advances to suppliers                       401,472    378,802    60,936
Project asset                               --        138,566    22,290
Other current assets                        851,203    733,139    117,936
Total current assets                        6,352,033  6,558,008  1,054,952
Property and equipment, net                 4,158,108  4,212,682  677,672
Project asset                               47,746     --        --
Advances to suppliers                       753,913    752,117    120,989
Long-term investment                        48,802     48,809     7,852
Other long term assets                      521,092    505,642    81,340
Total assets                                11,881,694 12,077,258 1,942,805
LIABILITIES AND SHAREHOLDERS' EQUITY                              
Current liabilities:                                              
Short-term borrowings                      1,042,432  1,134,105  182,438
Accounts payable                           1,882,631  2,180,362  350,743
Advances from customers                     202,723    88,875     14,297
Current portion of long term borrowings     936,163    736,825    118,529
Derivative liabilities-warrants             31,106     217,715    35,023
Accrued and other liabilities              945,829    797,700    128,322
Total current liabilities                   5,040,884  5,155,582  829,352
Long-term borrowings                       1,554,000  1,543,000  248,214
Derivative liabilities-warrants             154,259    --        --
Other long term liabilities                 428,472    445,478    71,662
Total liabilities                           7,177,615  7,144,060  1,149,228
Total JA Solar Holdings shareholders'       4,620,262  4,847,003  779,711
equity
Noncontrolling interest                     83,817     86,195     13,866
Total shareholders' equity                  4,704,079  4,933,198  793,577
Total liabilities and shareholders' equity  11,881,694 12,077,258 1,942,805

CONTACT: ICR, LLC
        
         Gary Dvorchak, CFA
         Senior Vice President
         Phone (U.S.): +1 (310) 954-1123
         Phone (China): +86 (138) 1079-1408
         Email: gary.dvorchak@icrinc.com

JA Solar Logo
 
Press spacebar to pause and continue. Press esc to stop.