JA Solar in Q1 2013: Shipments exceed high end of guidance

Shanghai, China - JA Solar Holdings Co., Ltd. announced its unaudited financial results for its first quarter ended March 31, 2013.

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. 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.

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 shift in 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."

Source: IWR Online, 21 May 2013