JA Solar Announces Fourth Quarter and Full Year 2009 Results
Shipment Volume, Gross Margin Exceed Company Guidance
SHANGHAI, Feb. 11 /PRNewswire-FirstCall/ -- JA Solar Holdings Co., Ltd., (Nasdaq: JASO), a leading manufacturer of high-performance solar power products, today announced its financial results for its fourth quarter and full year 2009, ended December 31, 2009.
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Fourth Quarter and Full Year 2009 Financial and Operating Highlights:
-- Fourth quarter shipments of 231MW, above the company's revised guidance of 210MW, representing an increase of 30.5% sequentially and 278.7% year-over-year
-- 2009 annual shipments of 509 MW, representing an increase of 83.8% over 2008
-- Fourth quarter gross margin was 20.5%, up from 16.7% in Q3 and above the company's guidance of 17% to 20%
-- Fourth quarter operating income of $36 million and operating margin of 15.1%
-- Fourth quarter net income of $22.3M and GAAP EPS of $0.14
-- Generated positive operating cash flow of $71M or $0.42 per diluted ADS
-- Maintained strong balance sheet and liquidity with over $273M in cash
"We are very pleased to report the highest shipment volumes in our company's history," said Dr. Peng Fang, CEO of JA Solar. "During 2009, JA Solar has focused its strategy on delivering excellent customer service, the highest product quality, and technology innovation, which has helped us win additional customers and increase market share," said Dr. Fang.
Fourth Quarter 2009 Financial Results
Total shipments in the fourth quarter of 2009 was a record 231MW, compared with third quarter shipments of 177MW, representing sequential growth of 30.5 percent. Compared with the same period last year, shipment growth was 278.7 percent, up from 61MW in the fourth quarter of 2008.
Revenue in the fourth quarter of 2009 was RMB 1.6 billion ($238.4 million), an increase of 23.4 percent from RMB 1.3 billion ($193 million) reported in the third quarter of 2009 and an increase of 66.2 percent from RMB 979.0 million ($143.4 million) reported in the fourth quarter of 2008.
Gross profit in the fourth quarter of 2009 was RMB 333.8 million ($48.9 million), compared with RMB 220.5 million ($32.3 million) in the third quarter of 2009 and RMB 9.7 million ($1.4 million) in the fourth quarter of 2008. Gross margin was 20.5% in the fourth quarter of 2009, compared with 16.7% in the third quarter of 2009 and 1.0% in the fourth quarter of 2008.
Total operating expenses in the fourth quarter of 2009 were RMB 88.3 million ($12.9 million), compared with RMB 72.3 million ($10.6 million) in the third quarter of 2009 and RMB 130.8 million ($19.2 million) in the fourth quarter of 2008.
Operating income in the fourth quarter of 2009 was RMB 245.5 million ($36 million), compared with an operating income of RMB 148.2 million ($21.7 million) in the third quarter of 2009 and operating loss of RMB 121.1 million (a loss of $17.7 million) in the fourth quarter of 2008. Operating margin was 15.1 percent in the fourth quarter of 2009, compared with 11.2 percent in the third quarter of 2009 and -12.4 percent in the fourth quarter of 2008.
Earnings per diluted ADS in the fourth quarter of 2009 were RMB 0.94 ($0.14), compared with RMB 0.66 ($0.10) in the third quarter of 2009 and net loss per diluted ADS of RMB 0.68 (a loss of $0.10) in the fourth quarter of 2008.
In the fourth quarter of 2009, the company generated operating cash flow of RMB 487.5 million ($71.4 million) or RMB 2.87 ($0.42) per diluted ADS.
Fiscal Year 2009 Results
Fiscal year 2009 shipments were 509MW, an increase of 83.8 percent, from 277MW in 2008.
Total 2009 revenue was RMB 3.8 billion ($553.7 million) compared with RMB 5.5 billion ($799.6 million) in 2008.
Total gross profit in 2009 was RMB 479.9 million ($70.3 million) or 12.7 percent, compared with RMB 992.0 million ($145.3 million) or 18.2 percent in 2008. Operating income for 2009 was RMB 91.5 million ($13.4 million), compared with RMB 692.0 million ($101.4 million) in 2008. In 2009, net loss per diluted ADS was RMB 0.80 (a loss of $0.12), compared with net loss per diluted ADS of RMB 2.31 (a loss of $0.34) in 2008.
For fiscal year 2009, the company generated an operating cash flow of RMB 766.2 million ($112.2 million) or RMB 4.5 ($0.66) per diluted ADS.
Liquidity
The company maintained a strong balance sheet with cash and cash equivalents of RMB 1.9 billion ($273.6 million), and total working capital of RMB 3.0 billion ($444.2 million) at December 31, 2009. Total long term bank borrowings was RMB 680 million ($99.6 million) and convertible bonds outstanding was RMB 1.6 billion ($228.2 million) at December 31, 2009.
Operations and Business Outlook
Research & Development Update
JA solar has achieved an average conversion efficiency of 18.7% in R&D for its next-generation mono-crystalline silicon PV cells with the designed device architecture compatible with current production platform. Pilot production is expected by mid-year 2010, with large-scale volume production anticipated by year-end 2010.
Manufacturing Capacity Expansion
To meet the high demand for its solar cell and module products, the JA Solar expects to achieve solar cell capacity of 1.1GW by the end of 2010. The new solar cell capacity to be added in 2010 will be "high-efficiency-enabled" for large volume manufacturing of the company's new high-efficiency solar cell architecture. Module capacity is expected to reach 300MW by year end 2010 to meet customer demand. Wafer capacity is expected to reach 120MW by year end 2010.
First Quarter and Full Year 2010 Outlook
Based on robust customer demand for JA Solar's products and additional customer wins, the company is raising its outlook for the full year of 2010. The company currently expects shipments to exceed 900MW for 2010, compared with prior guidance in the range of 750MW to 800MW. Shipments in the first quarter of 2010 are expected to be in the range of 215MW to 225MW.
"We continue to see strong demand from our existing customers as well as from new customers, and expect strong shipments for full year 2010 based on robust orders from a diversified customer base across multiple geographies. Going into 2010, we will focus on further extending our leadership in solar cell technology, product quality, and manufacturing cost. We continue to expand our customer base for our core solar cell business. Leveraging our strong solar cell platform, we plan to expand module facility in response to strong customer demand, and build up wafer capacity to improve quality and reduce cost. Our goal, as always, is to provide our customers with highest quality products at the best price," said Dr. Fang.
Investor Conference Call / Webcast Details
A conference call has been scheduled for today, Thursday, Feb. 11, 2010 at 8:00 am Eastern time. The call may be accessed by dialing 1.866.314.9013 (U.S.) or 1.617.213.8053 (international). 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 1.888.286.8010 (U.S.) or 1.617.801.6888 (international). The passcode for the replay is 74752789.
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 December 31, 2009, which was RMB 6.8259 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 December 31, 2009, 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 cells. The company sells its products to solar manufacturers worldwide, who assemble and integrate solar cells into modules and systems that convert sunlight into electricity for residential, commercial, and utility-scale power generation. For more information, please visit http://www.jasolar.com.
JA Solar Holdings Co., Ltd.
Condensed Consolidated Statements of Operations
(Unaudited)
For three months ended
Dec. 31, Sept. 30, Dec. 31, Dec. 31,
2008 2009 2009 2009
RMB'000 RMB'000 RMB'000 USD'000
Net revenues 979,032 1,319,238 1,627,527 238,434
Cost of sales (969,366) (1,098,713) (1,293,753) (189,536)
======= ======= ======= =======
Gross profit 9,666 220,525 333,774 48,898
======= ======= ======= =======
Selling, general and
administrative
expenses (117,443) (60,574) (79,296) (11,617)
Research and
development expenses (13,353) (11,712) (9,027) (1,323)
------- ------- ------- -------
Total operating
expenses (130,796) (72,286) (88,323) (12,940)
------- ------- ------- -------
Income/(loss) from
operations (121,130) 148,239 245,451 35,958
======= ======= ======= =======
Interest expense (63,611) (58,432) (39,783) (5,828)
Change in fair value of
derivatives 118,570 20,063 (49,692) (7,280)
Gain/(loss) on
buyback of
convertible bond 203,514 (212) (1,745) (255)
Other income 1,071 8,172 14,105 2,066
------- ------- ------- -------
Income before income
taxes 138,414 117,830 168,336 24,661
======= ======= ======= =======
Income tax benefit/
(expenses) 10,377 (11,002) (15,810) (2,316)
======= ======= ======= =======
Net income 148,791 106,828 152,526 22,345
======= ======= ======= =======
Net income/(loss)
per share:
Basic 0.92 0.66 0.94 0.14
Diluted (0.68) 0.66 0.94 0.14
Weighted average
number of shares
outstanding:
Basic 161,366,977 161,428,882 161,979,819 161,979,819
Diluted 174,981,652 170,517,891 169,760,173 169,760,173
JA Solar Holdings Co., Ltd.
Condensed Consolidated Statements of Operations
(Unaudited)
For twelve months ended
Dec. 31, 2008 Dec. 31, 2009 Dec. 31, 2009
RMB'000 RMB'000 USD'000
Net revenues 5,458,310 3,779,178 553,653
Cost of sales (4,466,275) (3,299,292) (483,349)
========= ========= =========
Gross profit 992,035 479,886 70,304
========= ========= =========
Selling, general and
administrative expenses (271,494) (343,284) (50,292)
Research and development
expenses (28,509) (45,101) (6,607)
--------- --------- ---------
Total operating expenses (300,003) (388,385) (56,899)
--------- --------- ---------
Income from operations 692,032 91,501 13,405
========= ========= =========
Interest expense (160,542) (213,627) (31,297)
Change in fair value
of derivatives 564,006 (49,071) (7,189)
Gain on buyback of
convertible bond 203,514 22,904 3,356
Other income/(expenses) (109,742) 27,632 4,048
Impairment on
available-for-sale
securities (686,320) - -
--------- --------- ---------
Income/(loss) before
income taxes 502,948 (120,661) (17,677)
========= ========= =========
Income tax expenses (23,882) (7,999) (1,172)
========= ========= =========
Net income/(loss) 479,066 (128,660) (18,849)
========= ========= =========
Net income/(loss) per share:
Basic 3.06 (0.80) (0.12)
Diluted (2.31) (0.80) (0.12)
Weighted average number
of shares outstanding:
Basic 156,380,060 161,643,312 161,643,312
Diluted 168,785,243 171,043,541 171,043,541
JA Solar Holdings Co., Ltd.
Condensed Consolidated Balance Sheets
(Unaudited)
Dec 31, Dec 31,
2008 2009 2009
RMB'000 RMB'000 USD'000
ASSETS
Current assets:
Cash and cash equivalents 1,542,784 1,867,248 273,553
Restricted cash 33,061 43,612 6,389
Short term investment 421,865 - -
Accounts receivable 355,051 339,524 49,741
Inventories 591,989 641,140 93,928
Advances to suppliers 680,447 423,283 62,011
Other current assets 205,227 346,488 50,761
--------- --------- --------
Total current assets 3,830,424 3,661,295 536,383
========= ========= ========
Property and equipment, net 1,369,807 1,724,442 252,632
Advances to suppliers 1,944,912 1,835,421 268,891
Derivative asset 4,485 10,521 1,541
Deferred issuance cost 58,952 36,070 5,284
Other long term assets 70,604 87,249 12,782
========= ========= ========
Total assets 7,279,184 7,354,998 1,077,513
========= ========= ========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities:
Short-term bank borrowings 490,000 10,000 1,465
Accounts payable 117,982 367,863 53,892
Accrued and other liabilities 262,841 251,365 36,825
--------- --------- --------
Total current liabilities 870,823 629,228 92,182
========= ========= ========
Convertible Bond 1,532,600 1,171,438 171,617
Embedded derivatives 115,676 136,632 20,017
Long-term bank borrowings - 680,000 99,621
Other long term liabilities 5,185 22,314 3,268
========= ========= ========
Total liabilities 2,524,284 2,639,612 386,705
========= ========= ========
Commitment and Contingencies
Shareholders' equity 4,754,900 4,715,386 690,808
========= ========= ========
Total liabilities and
shareholders' equity 7,279,184 7,354,998 1,077,513
========= ========= ========
SOURCE JA Solar Holdings Co., Ltd.
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