EX-99.1 2 a12-19692_1ex99d1.htm EX-99.1

Exhibit 99.1

 

JA Solar Announces Second Quarter 2012 Results

 

SHANGHAI, August 29, 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 second quarter ended June 30, 2012.

 

Second Quarter 2012 Highlights

 

·                 Shipments were 418 MW, in line with the low end of the Company’s previous guidance of 420 MW, and an increase of 14.2% from 366 MW in the first quarter of 2012

·                 Net revenue was RMB 1.8 billion ($284.4 million), an increase of 12.8% from RMB 1.6 billion ($252.2 million) in the first quarter of 2012

·                 Gross margin was 4.8%, compared with 2.1% in the first quarter of 2012

·                 Operating loss was RMB 155.9 million ($24.5 million), compared with operating loss of RMB 159.1 million ($25.0 million) in the first quarter of 2012

·                 Net loss, including a foreign exchange loss of RMB 69.8 million ($11.0 million) and tax expenses of RMB 120.0 million ($18.9 million), was RMB 457.8 million ($72.1 million), compared with net loss of RMB 250.9 million ($39.5 million) in the first quarter of 2012

·                 Loss per diluted ADS was RMB 2.34 ($0.37), compared with loss per diluted ADS of RMB 1.28 ($0.20) in the first quarter of 2012

·                 Cash and cash equivalents at the end of the quarter were RMB 3.7 billion ($589.1 million), compared with RMB 4.3 billion ($670.3 million) at the end of the first quarter of 2012

 

Dr. Peng Fang, CEO of JA Solar, commented, “In the second quarter, JA Solar achieved shipments in line with the low end of our guidance and maintained a healthy financial position despite the challenging market environment. Gross margin increased to 4.8% from 2.1% in the first quarter, as a result of our cost reduction efforts and increased operating efficiency. This quarter, modules accounted for more than 60% of revenues and more than 55% of shipments for the first time in our history. Although not as severe as in previous quarters, the downward pressure on pricing continued. In light of this, we focused on sustaining a healthy balance sheet and building our footprint in key growth markets.”

 

“In Europe, JA Solar is benefiting from the continued strength of the German market, and the growth in installation activity in new markets like the United Kingdom. We continue to work with our overseas manufacturing partners to supply the United States, but remain cautious given the lack of clarity about the impact of potential tariffs. At the same time, we have been successful in developing new customers in Canada. We are quickly building momentum in the promising Japanese market, where we have a strong position in both the rooftop and megawatt-scale solar farm segments. The new office we opened in Japan in August will allow even closer cooperation with our partners there. Along with China, where installation growth remains very encouraging, Japan should be an important growth market for JA Solar in the coming quarters.”

 

“While we recorded a loss for the quarter due to the unfavorable pricing environment, we continue to actively manage costs and operating expenses and have one of the strongest balance sheets in the industry. Our prudent approach to cash management throughout the current downturn has ensured that we have one of the best debt-to-asset ratios among our peers. Looking to the third quarter, our outlook on the market is cautious in light of uncertainty in the United States and shifting dynamics in European markets, and we have revised our guidance for the full year accordingly. Nevertheless, our robust balance sheet, expansion in key growth markets, close partnerships, and strong customer demand for our modules and cells underline our conviction that JA Solar will be a long-term industry winner. Looking to the third quarter, we remain focused on maintaining a healthy cash position while continuing aggressive expansion into key growth markets.”

 



 

Second Quarter 2012 Financial Results

 

Total shipments in the second quarter of 2012 were 418 MW, in line with the low end of the Company’s previously provided guidance of 420 MW to 440 MW. This represents a 14.2% increase from 366 MW in the first quarter of 2012 and a 4.2% increase from 401 MW in the second quarter of 2011.

 

Revenue in the second quarter of 2012 was RMB 1.8 billion ($284.4 million), an increase of 12.8% from RMB 1.6 billion ($252.2 million) in the first quarter of 2012, and a decrease of 32.3% from RMB 2.7 billion ($420.1 million) in the second quarter of 2011.

 

Gross profit in the second quarter of 2012 was RMB 86.1 million ($13.6 million), compared with a gross profit of RMB 33.2 million ($5.2 million) in the first quarter of 2012 and a gross loss of RMB 72.0 million ($11.3 million) in the second quarter of 2011. Gross margin was 4.8% in the second quarter of 2012, compared with 2.1% in the first quarter of 2012 and negative 2.7% in the second quarter of 2011.

 

Total operating expenses in the second quarter of 2012 were RMB 242.0 million ($38.1 million), compared with RMB 192.4 million ($30.3 million) in the first quarter of 2012 and RMB 130.0 million ($20.5 million) in the second quarter of 2011. The increase in total operating expenses quarter over quarter was primarily due to a prepayment impairment of RMB 21.3 million ($3.4 million) and an increase in freight costs and other export-related expenses of RMB 23.1 million ($3.6 million).

 

Operating loss in the second quarter of 2012 was RMB 155.9 million ($24.5 million), compared with an operating loss of RMB 159.1 million ($25.0 million) in the first quarter of 2012 and an operating loss of RMB 202.0 million ($31.8 million) in the second quarter of 2011. Operating margin was negative 8.6% in the second quarter of 2012, compared with a negative operating margin of 9.9% in the first quarter of 2012 and a negative operating margin of 7.6% in the second quarter of 2011.

 

Other loss in the second quarter of 2012 was RMB 48.4 million ($7.6 million), compared with other income of RMB 32.1 million ($5.1 million) in the first quarter of 2012 and other income of RMB 29.6 million ($4.7 million) in the second quarter of 2011. Other loss was primarily due to a foreign exchange loss of RMB 69.8 million ($11.0 million) resulting from the depreciation of the Euro against the Renminbi in the second quarter of 2012.

 

Tax expense in the second quarter of 2012 was RMB 120.0 million ($18.9 million), compared with tax expense of RMB 0.8 million ($0.1 million) in the first quarter of 2012 and a tax benefit of RMB 20.7 million ($3.3 million) in the second quarter of 2011. The increase in tax expense was primarily due to the accrual of an RMB 81.0 million ($12.8 million) income tax expense for one of our subsidiaries in Hebei province (“JA Hebei”), and RMB 21.1 million ($3.3 million) of withholding tax for a dividend distributed by one of our subsidiaries in Jiangsu province to its parent holding company.

 

In June 2012, the Company received a notice from the local tax bureau in Xingtai city, Hebei province, which ruled that JA Hebei was not eligible to benefit from a previously grandfathered tax holiday related to the portion of the taxable income of JA Hebei attributable to a capital injection made in 2008. The Company recorded tax payable of RMB 81.0 million ($12.8 million) at the end of the second quarter of 2012 and paid the amount in July 2012.

 

Loss per diluted ADS in the second quarter of 2012 was RMB 2.34 ($0.37), compared with loss per diluted ADS of RMB 1.28 ($0.20) in the first quarter of 2012 and loss per diluted ADS of RMB 1.39 ($0.22) in the second quarter of 2011.

 

In the second quarter of 2012, the Company had a negative operating cash flow of RMB 254.0 million ($40.0 million).

 



 

Liquidity

 

The Company maintained a strong balance sheet with cash and cash equivalents of RMB 3.7 billion ($589.1 million) and total working capital of RMB 2.0 billion ($316.6 million) at June 30, 2012. Total short-term bank borrowings and convertible notes due 2013 were RMB 2.4 billion ($374.1 million). Total long-term bank borrowings were RMB 4.3 billion ($682.3 million), among which RMB 1.6 billion ($247.3 million) were due in one year. The total face value of outstanding convertible notes due 2013 was RMB 1.4 billion ($219.7 million) at June 30, 2012.

 

Business Outlook

 

For the third quarter of 2012, the Company expects total cell and module shipments to be between 350 MW and 370 MW. For the full year 2012, the Company now expects total cell and module shipments to be between 1.5 GW and 1.8 GW, compared with the previously provided full year guidance of 1.8 GW to 2.0 GW. The revised estimates reflect the Company’s prioritization of maintaining a healthy financial position over short-term shipment gains.

 

Investor Conference Call / Webcast Details

 

A conference call has been scheduled for today, August 29, 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 21447705.

 

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 June 29, 2012, which was RMB 6.353 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 June 29, 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.

 



 

JA Solar Holdings Co., Ltd.

Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

 

 

 

For three months ended

 

 

 

Jun. 30,
2011

 

Mar. 31,
2012

 

Jun. 30,
2012

 

Jun. 30,
2012

 

 

 

RMB’000

 

RMB’000

 

RMB’000

 

USD’000

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

2,669,111

 

1,602,219

 

1,806,616

 

284,372

 

Cost of sales

 

(2,741,141

)

(1,568,983

)

(1,720,483

)

(270,814

)

Gross (loss)/profit

 

(72,030

)

33,236

 

86,133

 

13,558

 

Selling, general and administrative expenses

 

(114,083

)

(170,010

)

(220,075

)

(34,641

)

Research and development expenses

 

(15,875

)

(22,365

)

(21,965

)

(3,457

)

Total operating expenses

 

(129,958

)

(192,375

)

(242,040

)

(38,098

)

Loss from operations

 

(201,988

)

(159,139

)

(155,907

)

(24,540

)

Interest expense

 

(77,225

)

(123,091

)

(133,520

)

(21,017

)

Other income/(loss)

 

29,648

 

32,116

 

(48,443

)

(7,625

)

Loss before income taxes

 

(249,565

)

(250,114

)

(337,870

)

(53,182

)

Income tax benefit/(expenses)

 

20,675

 

(786

)

(119,953

)

(18,881

)

Net loss

 

(228,890

)

(250,900

)

(457,823

)

(72,063

)

 

 

 

 

 

 

 

 

 

 

Net loss per share:

 

 

 

 

 

 

 

 

 

Basic

 

(1.39

)

(1.28

)

(2.34

)

(0.37

)

Diluted

 

(1.39

)

(1.28

)

(2.34

)

(0.37

)

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

164,453,244

 

195,706,103

 

195,759,915

 

195,759,915

 

Diluted

 

164,453,244

 

195,706,103

 

195,759,915

 

195,759,915

 

 

 

 

 

 

 

 

 

 

 

Comprehensive loss

 

 

 

 

 

 

 

 

 

Net loss

 

(228,890

)

(250,900

)

(457,823

)

(72,063

)

Foreign currency translation adjustments, net of tax

 

(645

)

(284

)

901

 

143

 

Cash flow hedging loss, net of tax

 

10,219

 

(11,755

)

0

 

0

 

Other comprehensive income/(loss)

 

9,574

 

(12,039

)

901

 

143

 

Comprehensive loss

 

(219,316

)

(262,939

)

(456,922

)

(71,920

)

 



 

JA Solar Holdings Co., Ltd.

Condensed Consolidated Statements of Operations

(Unaudited)

 

 

 

For six months ended

 

 

 

Jun. 30, 2011

 

Jun. 30, 2012

 

Jun. 30, 2012

 

 

 

RMB’000

 

RMB’000

 

USD’000

 

 

 

 

 

 

 

 

 

Net revenues

 

6,312,475

 

3,408,836

 

536,571

 

Cost of sales

 

(5,754,165

)

(3,289,467

)

(517,782

)

Gross profit

 

558,310

 

119,369

 

18,789

 

Selling, general and administrative expenses

 

(187,130

)

(390,085

)

(61,401

)

Research and development expenses

 

(27,811

)

(44,331

)

(6,978

)

Total operating expenses

 

(214,941

)

(434,416

)

(68,379

)

Income/(loss) from operations

 

343,369

 

(315,047

)

(49,590

)

Interest expense

 

(140,669

)

(256,610

)

(40,392

)

Other income/(loss)

 

84,034

 

(16,327

)

(2,570

)

Income/(loss) before income taxes

 

286,734

 

(587,984

)

(92,552

)

Income tax expenses

 

(53,197

)

(120,739

)

(19,005

)

Income/(loss) from continuing operations

 

233,537

 

(708,723

)

(111,557

)

Income from discontinued operations

 

7,753

 

0

 

0

 

Net income/(loss)

 

241,290

 

(708,723

)

(111,557

)

 

 

 

 

 

 

 

 

Income/(loss) per share from continuing operations:

 

 

 

 

 

 

 

Basic

 

1.42

 

(3.62

)

(0.57

)

Diluted

 

1.31

 

(3.62

)

(0.57

)

 

 

 

 

 

 

 

 

Income per share from discontinued operations:

 

 

 

 

 

 

 

Basic

 

0.05

 

0.00

 

0.00

 

Diluted

 

0.04

 

0.00

 

0.00

 

 

 

 

 

 

 

 

 

Net income/(loss) per share:

 

 

 

 

 

 

 

Basic

 

1.47

 

(3.62

)

(0.57

)

Diluted

 

1.35

 

(3.62

)

(0.57

)

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding:

 

 

 

 

 

 

 

Basic

 

164,063,675

 

195,733,157

 

195,733,157

 

Diluted

 

172,341,341

 

195,733,157

 

195,733,157

 

 

 

 

 

 

 

 

 

Comprehensive income / (loss):

 

 

 

 

 

 

 

Net Income/(loss) 

 

241,290

 

(708,723

)

(111,557

)

Foreign currency translation adjustments, net of tax

 

(2,293

)

617

 

97

 

Cash flow hedging loss, net of tax

 

(5,865

)

(11,755

)

(1,850

)

Other comprehensive loss

 

(8,158

)

(11,138

)

(1,753

)

Comprehensive income/(loss)

 

233,132

 

(719,861

)

(113,310

)

 



 

JA Solar Holdings Co., Ltd.

Condensed Consolidated Balance Sheets

(Unaudited)

 

 

 

Dec. 31,

 

Jun. 30,

 

 

 

 

 

2011

 

2012

 

2012

 

 

 

RMB’000

 

RMB’000

 

USD’000

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Current assets: 

 

 

 

 

 

 

 

Cash and cash equivalents

 

3,889,092

 

3,742,433

 

589,081

 

Restricted cash

 

88,632

 

213,052

 

33,536

 

Accounts receivable 

 

1,244,904

 

1,531,782

 

241,112

 

Inventories

 

730,635

 

1,667,346

 

262,450

 

Advances to suppliers

 

435,657

 

280,887

 

44,213

 

Other current assets

 

1,320,202

 

1,250,061

 

196,767

 

Total current assets

 

7,709,122

 

8,685,561

 

1,367,159

 

Property and equipment, net

 

5,099,208

 

5,040,815

 

793,455

 

Advances to suppliers

 

1,452,920

 

1,355,105

 

213,302

 

Long-term investment

 

94,411

 

89,913

 

14,153

 

Deferred issuance cost

 

67,531

 

45,475

 

7,158

 

Other long term assets

 

312,407

 

308,071

 

48,492

 

Total assets

 

14,735,599

 

15,524,940

 

2,443,719

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Short-term bank borrowings 

 

529,906

 

1,091,704

 

171,841

 

Accounts payable 

 

725,093

 

1,594,705

 

251,016

 

Advances from customers

 

320,277

 

102,463

 

16,128

 

Notes payables

 

 

93,954

 

14,789

 

Long term liabilities due in one year

 

885,000

 

1,571,000

 

247,285

 

Convertible Bond

 

 

1,285,160

 

202,292

 

Accrued and other liabilities 

 

865,012

 

935,225

 

147,210

 

Total current liabilities

 

3,325,288

 

6,674,211

 

1,050,561

 

Convertible Bond

 

1,238,485

 

 

 

Long-term borrowings 

 

3,461,916

 

2,763,848

 

435,046

 

Other long term liabilities

 

161,241

 

241,996

 

38,092

 

Total liabilities

 

8,186,930

 

9,680,055

 

1,523,699

 

Commitment and Contingencies

 

 

 

 

 

 

 

Shareholders’ equity

 

6,548,669

 

5,844,885

 

920,020

 

Total liabilities and shareholders’ equity

 

14,735,599

 

15,524,940

 

2,443,719

 

 



 

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