• JA Solar Announces Third Quarter 2017 Results

    Source: Nasdaq GlobeNewswire / 15 Nov 2017 07:00:47   America/New_York

    BEIJING, Nov. 15, 2017 (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, 2017.

    Third Quarter 2017 Highlights

    • Total shipments were 1,640.9 megawatts (“MW”), consisting of 1,582.5 MW of modules and 37.9 MW of cells to external customers, and 20.5 MW of modules to the Company’s downstream projects.  External shipments were up 30.6% y/y and down 30.0% sequentially

    • Shipments of modules were 1,582.5 MW, an increase of 31.9% y/y and a decrease of 26.3% sequentially

    • Shipments of cells were 37.9 MW, a decrease of 7.3% y/y and 77.3% sequentially

    • Net revenue was RMB 4.3 billion ($652.6 million), an increase of 4.3% y/y and a decrease of 27.1% sequentially

    • Gross margin was 11.8%, a decrease of 200 basis points y/y and 110 basis points sequentially

    • Operating profit was RMB 169.8 million ($25.5 million), compared to RMB 121.4 million ($18.2 million) in the third quarter of 2016, and RMB 255.1 million ($38.3 million) in the second quarter of 2017

    • Net income was RMB 41.9 million ($6.3 million), compared to RMB 44.1 million ($6.6 million) in the third quarter of 2016, and RMB 134.6 million ($20.2 million) in the second quarter of 2017

    • Earnings per diluted ADS were RMB 0.89 or $0.13, compared to RMB 0.86 or $0.13 in the third quarter of 2016, and RMB 2.87 or $0.43 in the second quarter of 2017

    • Cash and cash equivalents were RMB 2.1 billion ($309.1 million), a decrease of RMB 1.2 billion ($176.9 million) during the quarter

    • Non-GAAP earnings1 per diluted ADS were RMB 0.89 or $0.13, compared to RMB 0.86 or $0.13 in the third quarter of 2016, and RMB 2.87 or $0.43 in the second quarter of 2017

    Mr. Baofang Jin, Chairman and CEO of JA Solar, commented, "Third quarter results were in-line with our expectations.  Total module shipments during the quarter increased more than 30% year-over-year to approximately 1.6 GW, largely driven by demand from our key markets, including China, the U.S., Europe and Japan.  Additionally, we maintained gross margin in the low teens through stringent cost control in an adverse pricing environment of polysilicon and wafers during the quarter."

    Mr. Jin continued, "We are seeing some uncertainties around the ongoing trade cases in the U.S. and India, which could impact global solar demand in the mid-term.  Additionally, accelerated capacity expansion in the industry is reshaping the competition landscape. That being said, we remain confident that our balanced global footprint and flexible business model will enable us to adjust to evolving market conditions as in the past cycles.  Our team remains focused on executing our business strategy to provide our customers with high-quality, high-reliability products, as we continue to position JA Solar for long-term growth.”

    All shipment and financial figures refer to the quarter ended September 30, 2017, unless otherwise specified.  All “year over year” or “y/y” comparisons are against the quarter ended September 30, 2016.  All “sequential” comparisons are against the quarter ended June 30, 2017.

    Total shipments were 1,640.9 MW, within the guidance range of 1,600 to 1,700 MW. External shipments of 1,620.4 MW increased 30.6% year-over-year and decreased 30.0% sequentially.

    External shipments breakdown by product (MW)

     2016Q32017Q22017Q3QoQ%YoY%
    Modules and module tolling1,200.02,147.51,582.5-26.3%31.9%
    Cells and cell tolling40.9167.237.9-77.3%-7.3%
    Total1,240.92,314.71,620.4-30.0%30.6%
            

    External shipments breakdown by region (percentage)

     2016Q32017Q22017Q3QoQ(pp)YoY(pp)
    China32.0%59.2%47.3%-11.9015.30
    APAC ex-China25.8%24.9%16.3%-8.60-9.50
    Europe6.5%5.1%14.1%9.007.60
    North America13.0%8.1%17.2%9.104.20
    South America20.2%0.4%0.4%0.00-19.80
    Others2.5%2.3%4.7%2.402.20
             

    Net revenue was RMB 4.3 billion ($652.6 million), an increase of 4.3% y/y and a decrease of 27.1% sequentially.

    Gross profit of RMB 513.6 million ($77.2 million) decreased 10.6% y/y and 33.4% sequentially.  Gross margin was 11.8%, which compares to 13.8% in the year-ago quarter, and 12.9% in the second quarter of 2017.

    Total operating expenses of RMB 343.8 million ($51.7 million) were 7.9% of revenue.  This compares to operating expenses of 10.9% of revenue in the year-ago quarter, and 8.7% of revenue in the second quarter of 2017.

    Operating profit was RMB 169.8 million ($25.5 million), compared to RMB 121.4 million ($18.2 million) in the year-ago quarter, and RMB 255.1 million ($38.3 million) in the second quarter of 2017.  Operating margin was 3.9%, compared with 2.9% in the prior-year period and 4.3% in the previous quarter.

    Interest expense was RMB 80.3 million ($12.1 million), compared to RMB 75.4 million ($11.3 million) in the year-ago quarter, and RMB 82.6 million ($12.4 million) in the second quarter of 2017.

    The change in fair value of warrant derivatives was nil, compared with positive RMB 17 thousand ($2.6 thousand) in the year-ago quarter, and nil in the second quarter of 2017. The warrants were issued on August 16, 2013 in conjunction with the Company’s $96 million registered direct offering, and expired on August 16, 2016.

    Earnings per diluted ADS were RMB 0.89 or $0.13, compared to earnings per diluted ADS of RMB 0.86 or $0.13 in the year-ago quarter, and earnings per diluted ADS of RMB 2.87 or $0.43 in the second quarter of 2017.

    Liquidity

    As of September 30, 2017, the Company had cash and cash equivalents of RMB 2.1 billion ($309.1 million), and total working capital of RMB 291.2 million ($43.8 million).  Total short-term borrowings were RMB 3.3 billion ($491.8 million). Total long-term borrowings were RMB 2.9 billion ($433.2 million), of which RMB 961.3 million ($144.5 million) were due in one year.

    Business Outlook

    For the fourth quarter of 2017, the Company expects total cell and module shipments to be in the range of 1,600 to 1,800 MW.  Nearly all will be external shipments.

    Investor Conference Call / Webcast Details

    JA Solar's management will host an earnings conference call on November 15, 2017 at 8:00 a.m. U.S. Eastern Time (9:00 p.m. China Time).

    Dial-in details for the earnings conference call are as follows:

     Phone NumberToll-Free Number
    United States+1 8456750437+1 8665194004
    Hong Kong+852 30186771+852 800906601
    Mainland China+86 8008190121
    +86 4006208038
     
    Other International+65 67135090 
       

    Please dial in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is 7597129.

    A replay of the conference call may be accessed by phone at the following numbers until November 23, 2017.  To access the replay, please reference the conference ID 7597129.

     Phone NumberToll-Free Number
    United States+1 6462543697+1 8554525696
    Hong Kong+852 30512780+852 800963117
    Mainland China+86 8008700206
    +86 4006322162
     
    Other International+61 281990299 
       

    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, 2017, which was RMB 6.6533 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 September 30, 2017, 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 5.2 GW of solar power products in 2016. JA Solar is headquartered in Beijing, China, and maintains production facilities in Shanghai, Hebei, Jiangsu and Anhui provinces in China, as well as Penang, Malaysia and Bac Giang, Vietnam.

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

    Contact:

    The Blueshirt Group

    Ralph Fong
    Phone: +1 (415) 489-2195
    Email: ralph@blueshirtgroup.com

    1 JA Solar adjusts net income attributable to the Company's ordinary shareholders to exclude changes in fair value of certain warrants granted to certain investors in a registered direct offering (the "Offering") closed on August 16, 2013.


     
    JA Solar Holdings Co., Ltd.
    Condensed Consolidated Statements of Operations and Comprehensive Income
    (Unaudited)
     
     For three months ended
     Sep. 30, 2016 Jun. 30, 2017 Sep. 30, 2017 Sep. 30, 2017 
     RMB'000 RMB'000 RMB'000 USD'000 
         
    Net revenues4,162,927 5,953,211 4,341,718 652,566 
    Cost of sales(3,588,469)(5,182,372)(3,828,137)(575,374)
    Gross profit574,458 770,839 513,581 77,192 
    Selling, general and administrative expenses(406,194)(480,065)(302,786)(45,509)
    Research and development expenses(46,871)(35,667)(40,964)(6,157)
    Total operating expenses(453,065)(515,732)(343,750)(51,666)
    Income from operations121,393 255,107 169,831 25,526 
    Interest expense(75,378)(82,617)(80,283)(12,067)
    Change in fair value of warrant derivatives17   -    -    -  
    Other income/(loss), net10,450 13,654 (35,594)(5,350)
    Income before income taxes56,482 186,144 53,954 8,109 
    Income tax expense(12,361)(51,536)(12,061)(1,813)
    Net income44,121 134,608 41,893 6,296 
    Less: loss attributable to noncontrolling interest(715)  -    -    -  
    Net income attributable to JA Solar Holdings44,836 134,608 41,893 6,296 
         
    Net income per share attributable to ordinary shareholders:    
    Basic0.17 0.57 0.18 0.03 
    Diluted0.17 0.57 0.18 0.03 
         
    Weighted average number of shares outstanding:    
    Basic 234,290,842 234,311,611 234,360,842 234,360,842 
    Diluted234,338,817 234,333,946 234,383,172 234,383,172 
         
    Comprehensive income    
    Net income44,121 134,608 41,893 6,296 
    Foreign currency translation adjustments, net of tax(3,776)(786)3,276 492 
    Other comprehensive (loss)/income(3,776)(786)3,276 492 
    Comprehensive income40,345 133,822 45,169 6,788 
    Loss attributable to noncontrolling interest(715)  -    -    -  
    Comprehensive income attributable to JA Solar Holdings41,060 133,822 45,169 6,788 
         
    NON-GAAP RECONCILIATION    
         
    GAAP net income attributable to JA Solar Holdings44,836 134,608 41,893 6,296 
    Change in fair value of warrant derivatives(17)  -    -    -  
    Non-GAAP net income attributable to JA Solar Holdings44,819 134,608 41,893 6,296 
         
    Non-GAAP net income per share attributable to ordinary shareholders:    
    Basic0.17 0.57 0.18 0.03 
    Diluted0.17 0.57 0.18 0.03 
         
    Non-GAAP weighted average number of shares outstanding:    
    Basic234,290,842 234,311,611 234,360,842 234,360,842 
    Diluted234,338,817 234,333,946 234,383,172 234,383,172 
         


     
    JA Solar Holdings Co., Ltd.
    Condensed Consolidated Statements of Operations
    (Unaudited)
     For nine months ended
     Sep. 30, 2016 Sep. 30, 2017 Sep. 30, 2017 
     RMB'000 RMB'000 USD'000 
        
    Net revenues11,746,233 13,987,335 2,102,315 
    Cost of sales(9,968,121)(12,269,579)(1,844,134)
    Gross profit1,778,112 1,717,756 258,181 
    Selling, general and administrative expenses(1,114,964)(1,095,709)(164,687)
    Research and development expenses(130,513)(117,091)(17,599)
    Total operating expenses(1,245,477)(1,212,800)(182,286)
    Income from operations532,635 504,956 75,895 
    Interest expense(211,455)(246,174)(37,000)
    Change in fair value of warrant derivatives70,882   -    -  
    Other income, net57,610 575 86 
    Income before income taxes449,672 259,357 38,981 
    Income tax expenses(83,487)(74,733)(11,233)
    Net income366,185 184,624 27,748 
    Less: income attributable to noncontrolling interest990   -    -  
    Net income attributable to JA Solar Holdings365,195 184,624 27,748 
        
    Net income per share attributable to ordinary shareholders:   
    Basic1.32 0.79 0.12 
    Diluted1.32 0.79 0.12 
        
    Weighted average number of shares outstanding:   
    Basic  234,290,842   234,321,467   234,321,467 
    Diluted  234,434,640   234,339,597   234,339,597 
        
    Comprehensive income   
    Net income366,185 184,624 27,748 
    Foreign currency translation adjustments, net of tax(25,984)3,572 537 
    Other comprehensive (loss)/income(25,984)3,572 537 
    Comprehensive income340,201 188,196 28,285 
    Income attributable to noncontrolling interest990   -    -  
    Comprehensive income attributable to JA Solar Holdings339,211 188,196 28,285 
        
    NON-GAAP RECONCILIATION   
        
    GAAP net income attributable to JA Solar Holdings365,195 184,624 27,748 
    Change in fair value of warrant derivatives(70,882)  -    -  
    Non-GAAP net income attributable to JA Solar Holdings294,313 184,624 27,748 
        
    Non-GAAP net income per share attributable to ordinary shareholders:   
    Basic1.06 0.79 0.12 
    Diluted1.06 0.79 0.12 
        
    Non-GAAP weighted average number of shares outstanding:   
    Basic234,290,842 234,321,467 234,321,467 
    Diluted234,434,640 234,339,597 234,339,597 
        


     
    JA Solar Holdings Co., Ltd.
    Condensed Consolidated Balance Sheets
    (Unaudited)
        
     Dec. 31,Sep 30,
     201620172017
     RMB'000RMB'000USD'000
      
    ASSETS   
    Current assets:    
    Cash and cash equivalents  2,569,402  2,056,706  309,126
    Restricted cash  836,761  1,078,252  162,063
    Accounts receivable   2,753,678  2,872,657  431,764
    Notes receivable   563,144  84,373  12,681
    Inventories  2,460,488  3,377,184  507,595
    Advances to suppliers  282,369  389,040  58,473
    Other current assets  799,314  761,886  114,512
    Total current assets  10,265,156  10,620,098  1,596,214
    Property and equipment, net  5,219,501  6,037,223  907,403
    Project asset  2,338,648  2,832,756  425,767
    Advances to suppliers  97,429  40,017  6,015
    Prepaid land use rights  524,208  528,523  79,438
    Long-term investment  69,022  74,527  11,202
    Other long term assets  517,292  697,728  104,870
    Total assets  19,031,256  20,830,872  3,130,909
    LIABILITIES AND SHAREHOLDERS’ EQUITY   
    Current liabilities:   
    Short-term borrowings   2,912,866  3,272,227  491,820
    Accounts payable   2,635,525  3,340,136  502,027
    Advances from customers  610,718  964,325  144,939
    Current portion of long term borrowings  525,256  961,329  144,489
    Accrued and other liabilities   1,966,475  1,790,875  269,172
    Total current liabilities  8,650,840  10,328,892  1,552,447
    Long-term borrowings   2,701,438  1,920,554  288,662
    Other long term liabilities  1,217,648  1,931,484  290,305
    Total liabilities  12,569,926  14,180,930  2,131,414
    Total JA Solar Holdings shareholders' equity  6,461,130  6,649,742  999,465
    Noncontrolling interest  200  200  30
    Total shareholders' equity  6,461,330  6,649,942  999,495
    Total liabilities and shareholders’ equity  19,031,256  20,830,872  3,130,909
        


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