EX-99.1 2 a12-14471_1ex99d1.htm EX-99.1

Exhibit 99.1

 

JA Solar Announces First Quarter 2012 Results

 

SHANGHAI, June 5, 2012 — 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, 2012.

 

First Quarter 2012 Highlights

 

                Shipments were 366 MW, above the high end of the Company’s previous guidance of 350 MW and a decrease of 8.1% from the fourth quarter of 2011

                Net revenue was RMB 1.6 billion ($254.4 million), compared to RMB 1.95 billion ($309.0 million) in the fourth quarter of 2011

                Gross margin, including provisions for potential countervailing and anti-dumping duties totaling $2.9 million, was 2.1%, compared to gross margin of 0.5% in the fourth quarter of 2011

                Operating loss was RMB 159.1 million ($25.3 million), compared to operating loss of RMB 487.6 million ($77.4 million) in the fourth quarter of 2011

                Net loss was RMB 250.9 million ($39.8 million) and loss per diluted ADS was RMB 1.28 ($0.20), compared to loss per diluted ADS of RMB 2.45  ($0.39) in the fourth quarter of 2011

                Operating cash flow was RMB 114.8 million ($18.2 million), compared to RMB 545.3 million ($86.6 million) in the fourth quarter of 2011

                Cash and cash equivalents at the end of the quarter were RMB 4.3 billion ($676.2 million), compared to RMB 3.9 billion ($617.6 million) at the end of the fourth quarter of 2011

 

Dr. Peng Fang, CEO of JA Solar, commented, “Despite the seasonal impact of the Chinese New Year holiday, we achieved shipments of 366 MW in the first quarter, above the high end of our previous guidance. Our results for the first quarter demonstrate the effectiveness of our strategy to ensure JA Solar’s long-term sustainability through the current volatile market environment. Through prudent balance sheet management, we recorded positive operating cash flow of RMB 114.8 million. With industry-wide overcapacity continuing, we nevertheless recorded positive gross margin and positive EBITDA. This enabled us to maintain a relatively healthy balance sheet — one of the strongest in the industry — which gives customers and financial institutions confidence in JA Solar as a long-term partner. Across the industry, we have seen a shift where customers are seeking quality suppliers who can demonstrate both financial and technological strength. Going forward, we expect that JA Solar will increasingly benefit from this trend, as we build our presence in key markets and grow demand for our high-efficiency products.

 

“Demand for our cells and modules remains strong. In Germany and Italy, sales in the first quarter were above our expectations. In both markets we see a trend towards rooftop installations, to which JA Solar’s high-efficiency product offerings are ideally suited. In the first quarter we also focused on expansion into promising new markets

 



 

such as Japan, India and the Middle East. We expect that Japan, for example, will be an important market for JA Solar. Few suppliers can meet Japanese customers’ rigorous standards for product quality and reliability, and our continued growth in this market is a testament to the superiority of our offering. We now have a local sales team on the ground, which is working to build out our fruitful relationships with Japanese customers, and we expect to record meaningful shipments to Japan in the coming quarters. In China, we have carefully nurtured strong partnerships with some of the leading project developers and EPCs and we expect shipments to Chinese customers to increase substantially in 2012.

 

“While we are disappointed by the U.S. Department of Commerce’s preliminary decision on anti-dumping duties last month, since last year we have worked to ensure that JA Solar is relatively insulated from the impact of this ruling. The majority of our products sold in the U.S. market in the first quarter contained cells produced by our partners outside of mainland China. Therefore, our exposure to potential government tariffs is relatively small and we believe that JA Solar is significantly less exposed than our peers. We estimate that less than 10 MW of the products we shipped to the U.S. in Q1 will be subject to tariffs if the provisional ruling is ratified, and we have recorded a related provision of approximately $2.9 million in the first quarter.

 

“Globally, we have seen that both potential and existing customers are increasingly relying on strong and dependable Tier One suppliers. I’m therefore confident that JA Solar’s strong balance sheet, prudent cash management strategy, and high-quality product offerings that are well suited to changing industry demands, position us for long-term success.”

 

First Quarter 2012 Financial Results

 

Total shipments in the first quarter of 2012 were 366 MW, above the high end of the Company’s previously provided guidance of 320 MW to 350 MW. This represents an 8.1% decline from 398 MW in the fourth quarter of 2011 and an 18.9% decrease from 451 MW in the first quarter of 2011.

 

Revenue in the first quarter of 2012 was RMB 1.6 billion ($254.4 million), a decrease of 17.7% from RMB 1.95 billion ($309.0 million) reported in the fourth quarter of 2011 and a decrease of 56.0% from RMB 3.6 billion ($578.5 million) reported in the first quarter of 2011.

 

Gross profit in the first quarter of 2012 was RMB 33.2 million ($5.3 million), compared with a gross profit of RMB 9.1 million ($1.4 million) in the fourth quarter of 2011 and gross profit of RMB 630.3 million ($100.1 million) in the first quarter of 2011. Gross margin, including provisions for potential countervailing and anti-dumping duties, was 2.1% in the first quarter of 2012, compared with 0.5% in the fourth quarter of 2011 and 17.3% in the first quarter of 2011. Excluding the provisions for potential countervailing and anti-dumping duties, gross margin would have been 3.2% in the first quarter of 2012.

 

Total operating expenses in the first quarter of 2012, were RMB 192.4 million ($30.5 million), compared with RMB 496.7 million ($78.9 million) in the fourth quarter of 2011 and RMB 85.0 million ($13.5 million) in the first quarter of 2011. The decrease in total operating expenses

 



 

quarter over quarter was primarily due to a long-lived asset impairment loss of RMB 303.1 million ($48.1 million) recorded in the fourth quarter of 2011.

 

Operating loss in the first quarter of 2012 was RMB 159.1 million ($25.3 million), compared with an operating loss of RMB 487.6 million ($77.4 million) in the fourth quarter of 2011 and operating income of RMB 545.4 million ($86.6 million) in the first quarter of 2011. Operating margin was negative 9.9% in the first quarter of 2012, compared with negative 25.1% in the fourth quarter of 2011 and a positive operating margin of 15.0% in the first quarter of 2011.

 

Other income in the first quarter of 2012 was RMB 32.1 million ($5.1 million), compared with other income of RMB 208.9 million ($33.2 million) in the fourth quarter of 2011 and other income of RMB 54.4 million ($8.6 million) in the first quarter of 2011.

 

Loss per diluted ADS in the first quarter of 2012 was RMB 1.28 ($0.20), compared with loss per diluted ADS of RMB 2.45 ($0.39) in the fourth quarter of 2011 and earnings per diluted ADS of RMB 2.68 ($0.43) in the first quarter of 2011.

 

In the first quarter of 2012, the Company generated operating cash flow of RMB 114.8 million ($18.2 million).

 

Liquidity

 

The Company maintained a strong balance sheet with cash and cash equivalents of RMB 4.3 billion ($676.2 million), and total working capital of RMB 3.7 billion ($591.9 million) at March 31, 2012. Total short-term bank borrowings were RMB 968.3 million ($153.8 million). Total long-term bank borrowings were RMB 4.4 billion ($697.9 million), among which RMB 1.4 billion ($226.0 million) were due in one year. The total face value of outstanding convertible bonds due 2013 was RMB 1.4 billion ($220.7 million) at March 31, 2012.

 

Business Outlook

 

For the second quarter of 2012, the Company expects total cell and module shipments to be between 420 MW and 440 MW. The Company’s full year guidance of 1.8 GW to 2 GW remains unchanged.

 

Investor Conference Call / Webcast Details

 

A conference call has been scheduled for today, Tuesday, June 5, 2012, 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 +61-2-8235-5000 (international) or +1-718-354-1232 (U.S.). The passcode for the replay is 83573982.

 



 

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 30, 2012, which was RMB 6.2975 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 30, 2012, 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 cells. Its standard and high-efficiency product offerings are among the most powerful and cost-effective in the industry. The Company also produces solar modules which it distributes under its own brand and produces on behalf of solar manufacturers globally. The Company shipped 1.69 GW of solar power products in 2011. 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.

 

Contact:

 

In China

 

Martin Reidy

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

 



 

JA Solar Holdings Co., Ltd.

Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

 

 

 

For three months ended

 

 

 

Mar. 31, 2011

 

Dec. 31,
2011

 

Mar. 31,
2012

 

Mar. 31, 2012

 

 

 

RMB’000

 

RMB’000

 

RMB’000

 

USD’000

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

3,643,363

 

1,945,724

 

1,602,219

 

254,421

 

Cost of sales

 

(3,013,024

)

(1,936,616

)

(1,568,983

)

(249,144

)

Gross profit

 

630,339

 

9,108

 

33,236

 

5,277

 

Selling, general and administrative expenses

 

(73,046

)

(170,084

)

(170,010

)

(26,996

)

Impairment loss for property, plant and equipment

 

0

 

(303,068

)

0

 

0

 

Research and development expenses

 

(11,936

)

(23,550

)

(22,365

)

(3,551

)

Total operating expenses

 

(84,982

)

(496,702

)

(192,375

)

(30,547

)

Income/(loss) from operations

 

545,357

 

(487,594

)

(159,139

)

(25,270

)

Interest expense

 

(63,444

)

(117,492

)

(123,091

)

(19,546

)

Other income

 

54,386

 

208,915

 

32,116

 

5,100

 

Income/(loss) before income taxes

 

536,299

 

(396,171

)

(250,114

)

(39,716

)

Income tax (expenses)/benefit

 

(73,872

)

(33,478

)

(786

)

(125

)

Income/(loss) from continuing operations

 

462,427

 

(429,649

)

(250,900

)

(39,841

)

Income from discontinued operations

 

7,753

 

0

 

0

 

0

 

Net income/(loss)

 

470,180

 

(429,649

)

(250,900

)

(39,841

)

 

 

 

 

 

 

 

 

 

 

Income/(loss) per share from continuing operations:

 

 

 

 

 

 

 

 

 

Basic

 

2.82

 

(2.45

)

(1.28

)

(0.20

)

Diluted

 

2.63

 

(2.45

)

(1.28

)

(0.20

)

 

 

 

 

 

 

 

 

 

 

Income per share from discontinued operations:

 

 

 

 

 

 

 

 

 

Basic

 

0.05

 

0

 

0

 

0

 

Diluted

 

0.05

 

0

 

0

 

0

 

 

 

 

 

 

 

 

 

 

 

Net income/(loss) per share:

 

 

 

 

 

 

 

 

 

Basic

 

2.87

 

(2.45

)

(1.28

)

(0.20

)

Diluted

 

2.68

 

(2.45

)

(1.28

)

(0.20

)

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

163,669,777

 

175,522,534

 

195,706,103

 

195,706,103

 

Diluted

 

172,190,352

 

175,522,534

 

195,706,103

 

195,706,103

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income / (loss):

 

 

 

 

 

 

 

 

 

Net Income/(loss)

 

470,180

 

(429,649

)

(250,900

)

(39,841

)

Foreign currency translation adjustments, net of tax

 

(1,648

)

2,058

 

(284

)

(45

)

Cash flow hedging loss, net of tax

 

(16,084

)

(15,201

)

(11,755

)

(1,867

)

Other comprehensive loss

 

(17,732

)

(13,143

)

(12,039

)

(1,912

)

Comprehensive income/(loss)

 

452,448

 

(442,792

)

(262,939

)

(41,753

)

 



 

JA Solar Holdings Co., Ltd.

Condensed Consolidated Balance Sheets

(Unaudited)

 

 

 

Dec. 31,

 

Mar. 31,

 

 

 

2011

 

2012

 

2012

 

 

 

RMB’000

 

RMB’000

 

USD’000

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

3,889,092

 

4,258,372

 

676,200

 

Restricted cash

 

88,632

 

94,114

 

14,945

 

Accounts receivable

 

1,244,904

 

1,453,955

 

230,878

 

Inventories

 

730,635

 

1,192,755

 

189,401

 

Advances to suppliers

 

435,657

 

489,084

 

77,663

 

Other current assets

 

1,320,202

 

1,102,725

 

175,106

 

Total current assets

 

7,709,122

 

8,591,005

 

1,364,193

 

Property and equipment, net

 

5,099,208

 

5,120,215

 

813,055

 

Advances to suppliers

 

1,452,920

 

1,382,744

 

219,570

 

Long-term investment

 

94,411

 

90,843

 

14,425

 

Deferred issuance cost

 

67,531

 

56,659

 

8,997

 

Other long term assets

 

312,407

 

309,989

 

49,224

 

Total assets

 

14,735,599

 

15,551,455

 

2,469,464

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Short-term bank borrowings

 

529,906

 

968,312

 

153,761

 

Accounts payable

 

725,093

 

1,381,303

 

219,341

 

Advances from customers

 

320,277

 

223,057

 

35,420

 

Notes payables

 

 

11,887

 

1,888

 

Long term liabilities due in one year

 

885,000

 

1,423,000

 

225,963

 

Accrued and other liabilities

 

865,012

 

856,078

 

135,939

 

Total current liabilities

 

3,325,288

 

4,863,637

 

772,312

 

Convertible Bond

 

1,238,485

 

1,256,939

 

199,593

 

Long-term borrowings

 

3,461,916

 

2,972,297

 

471,981

 

Other long term liabilities

 

161,241

 

162,306

 

25,773

 

Total liabilities

 

8,186,930

 

9,255,179

 

1,469,659

 

Commitment and Contingencies

 

 

 

 

 

 

 

Shareholders’ equity

 

6,548,669

 

6,296,276

 

999,805

 

Total liabilities and shareholders’ equity

 

14,735,599

 

15,551,455

 

2,469,464