- Record Shipment Volumes, Revenue, and Earnings
for Q4 and FY 2010 - Record Revenue of $1.78 Billion, PV Product
Shipment of 1.46GW, and GAAP Diluted EPS of US$1.61 for FY 2010 -
More Than 2GW of Sales Contracts for 2011 Delivery Signed With
Multiple Customers; Total Shipments Expected to Exceed 2.2GW
JA Solar Holdings Co., Ltd., (Nasdaq:JASO), one of the world's
largest manufacturers of high-performance solar cells and solar
power products, today announced its financial results for its
fourth quarter and full year ended December 31, 2010.
Fourth Quarter and Full Year 2010 Financial
and Operating Highlights:
- Record fourth quarter shipments of
463MW, an increase of 11% sequentially and
100% year-over-year
- Full Year 2010 shipments grew to 1.46 GW, an increase
of 187% over 2009
- Full Year 2010 revenue of $1.78 billion, an increase of
211% from $572.5 million in 2009
- Annual gross margin of
21.7%, up from 12.8% in
2009
- Full year 2010 operating income of $299.6
million and operating margin of 16.8%
- Full year 2010 net income of $266 million and GAAP
diluted EPS of $1.61
- Fourth quarter revenue of $584.3 million, operating
income of $89.5 million and operating margin of 15.3%
- Fourth quarter net income of
$118.7 million and GAAP
diluted EPS of $0.59, a sequential increase of
24.3%
- Diversified global customer base in Q4: 53%
international customers and 47% domestic customers
- Strong balance sheet with cash balance of
$346.9 million and working
capital of $662.8
million
"2010 was a transformational year for our company, with annual
revenues growing by 211% and shipments rising by 187% as we
enhanced our position as one of the global leaders in the solar
industry," said Dr. Peng Fang, CEO of JA Solar. "During the year,
we firmly established JA Solar as the market leader in solar cell
production and shipment. Customers worldwide responded to our clear
advantages in technology, quality and cost, enabling us to build a
very healthy and diversified global customer base."
According to reports published by SolarBuzz and IMS Research in
December 2010, JA Solar ranked first globally in terms of solar
cells produced and shipped in Q3 2010.
"Our results in 2010 are clear proof of the success of our
emphasis on developing long term partnerships with the major
players in the solar industry. Today, a growing number of top tier
solar companies worldwide consider JA Solar to be their strategic
supply partner of choice for high-quality, low-cost PV
products."
"As one of the world's largest solar cell producers, JA Solar is
well-positioned to take advantage of robust industry growth in
2011. With demand for our products currently well ahead of what we
can produce, we intend to quickly ramp up production capacity in
2011. In particular, we intend to increase solar cell production
capacity to more than 3GW, while module capacity is expected to
increase to 800MW and wafer capacity to 600MW by year-end. We also
intend to continue focusing on developing innovative new
technologies that can enable us to further optimize our cost
structure and ensure that our high quality solar products are even
more attractive to our customers."
Fourth Quarter 2010 Financial Results
Total shipments in the fourth quarter of 2010 were a record
463MW, compared with third quarter shipments of 418MW, representing
sequential growth of 11%. Compared with the same period last year,
shipments grew 100% from 231MW.
Revenue in the fourth quarter of 2010 was RMB 3.9 billion
($584.3 million), an increase of 6.6% compared to RMB 3.6 billion
($548.3 million) reported in the third quarter of 2010 and an
increase of 137% from RMB 1.6 billion ($246.5 million) reported in
the fourth quarter of 2009.
Gross profit in the fourth quarter of 2010 was RMB 740.4 million
($112.2 million), compared with RMB 816.0 million ($123.6 million)
in the third quarter of 2010 and RMB 335.0 million ($50.8 million)
in the fourth quarter of 2009. Gross margin was 19.2% in the fourth
quarter of 2010, compared with 22.5% in the third quarter of 2010
and 20.6% in the fourth quarter of 2009.
Total operating expenses in the fourth quarter of 2010 were RMB
149.8 million ($22.7 million), compared with RMB 146.7 million
($22.2 million) in the third quarter of 2010 and RMB 88.3 million
($13.4 million) in the fourth quarter of 2009.
Operating income in the fourth quarter of 2010 was RMB 590.7
million ($89.5 million), compared with RMB 669.3 million ($101.4
million) in the third quarter of 2010 and RMB 246.7 million ($37.4
million) in the fourth quarter of 2009. Operating margin was 15.3%
in the fourth quarter of 2010, compared with 18.5% in the third
quarter of 2010 and 15.2% in the fourth quarter of 2009.
Earnings per diluted ADS in the fourth quarter of 2010 were RMB
3.90 ($0.59), an increase of 24% compared with RMB 3.14 ($0.48) in
the third quarter of 2010 and an increase of 366% compared with RMB
0.84 ($0.13) in the fourth quarter of 2009.
Included in other income are significant
transactions from activities other than normal business
operations:
- $34.6 million of proceeds from sales of Lehman Notes. The $100
million face-value USD 3-Month LCMNER Index-Linked Note was issued
by Lehman Brothers Treasury Co. B.V. incorporated in The
Netherlands and was previously written off as a result of the
bankruptcy of Lehman Brothers and its affiliates. The proceeds from
Lehman Notes resulted in a $0.20 gain per diluted ADS.
- Non-cash gain on change in fair value of derivatives was mainly
related to a convertible bond issued in May 2008. Embedded
derivative was calculated using a valuation model with many input
assumptions such as interest rate yield curve, foreign exchange
rates, stock price, volatility, expected terms, risk-free rate and
fundamental change event probabilities. This gain had a positive
impact of $0.13 on basic earnings per ADS. However, due to
dilution, the gain of $21.9 million was excluded from the
calculation of diluted earnings per share and the share count was
increased by 7.5 million shares to 172.3 million shares assuming
that the convertible bonds were converted at the beginning of the
quarter. The calculation reduced diluted earnings per ADS by
$0.13.
The Company also recorded a net loss from discontinuing
operations of $3.0 million associated with the potential sale of
the 3MW solar power plant. This solar power plant was previously
recorded in fixed assets. In conjunction with the potential sale,
the operating results of this project have been reclassified out of
continuing operations for all periods presented. The loss had an
impact of $0.02 per ADS in the fourth quarter.
In the fourth quarter of 2010, the Company generated operating
cash flow of RMB 169.0 million ($25.6 million) or RMB 0.98 ($0.15)
per diluted ADS.
Full Year 2010 Results
Full year 2010 shipments were 1.46GW, an increase of 187%, from
509MW in full year 2009.
Total revenue for full year 2010 was RMB 11.8 billion ($1.8
billion), an increase of 211% compared with RMB 3.8 billion ($572.5
million) in full year 2009.
Total gross profit in full year 2010 was RMB 2.55 billion
($385.8 million) or 21.7%, compared with RMB 482.1 million ($73.0
million) or 12.8% in full year 2009. Operating income for full year
2010 was RMB 1.98 billion ($299.6 million), compared with RMB 93.7
million ($14.2 million) in full year 2009. In full year 2010, net
income per diluted ADS was RMB 10.61 ($1.61), compared with a net
loss per diluted ADS of RMB 1.20 (a loss of $0.18) in full year
2009.
For full year 2010, the Company generated an operating cash flow
of RMB 1.3 billion ($193.9 million) or RMB 7.48 ($1.13) per diluted
ADS.
Liquidity
The Company maintained a strong balance sheet with
cash and cash equivalents of RMB 2.3 billion ($346.9 million), and
total working capital of RMB 4.4 billion ($662.8 million) at
December 31, 2010. Total long term bank borrowings were RMB 1.5
billion ($230.3 million) and the face value of outstanding
convertible bonds due 2013 was RMB 1.5 billion ($228.2 million) at
December 31, 2010.
Operations and Business
Outlook
Research & Development Update
In February 2011, the Company announced that it had developed a
new high-power multi-crystalline solar cell, dubbed Maple, which
has achieved an 18.2% conversion efficiency rate in large-volume
manufacturing conditions. Maple cells feature a proprietary
technology that enables significantly improved conversion
efficiency compared to traditional multi-crystalline silicon solar
cells.
Supply Chain Optimization
In addition to expanding production capacity in 2011, the
Company intends to further enhance its cost structure by optimizing
its supply chain. The Company has signed long-term supply contracts
with several strategic partners for 2011, a number of whom have
announced their intention to locate production facilities close to
JA Solar's factories in order to serve the Company's fast-rising
demand. This cost-effective capacity is expected to ramp up
throughout 2011.
Full Year 2011 Outlook
Based on strong customer demand for JA Solar's products and a
number of new customer wins, the Company currently expects total
cell and module shipments to exceed 2.2GW in 2011, representing an
increase of approximately 50% compared to 2010. Module shipments
are expected to be approximately 500MW to 600MW. Sales contracts
signed to date for 2011 delivery amount to more than 2GW,
representing approximately 90% of the Company's expected shipments
for 2011.
Investor Conference Call / Webcast
Details
A conference call has been scheduled for today, Tuesday February
22, 2011 at 8:00 AM Eastern Time. The call may be accessed by
dialing +1-866-270-6057 (U.S.) or +1-617-213-8891 (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
91792010.
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, 2010, which was RMB 6.6000 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, 2010, 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. 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.
The JA Solar Holdings Co., Ltd. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=8631
| |
| |
| JA Solar Holdings Co.,
Ltd. |
| Condensed Consolidated
Statements of Operations |
|
(Unaudited) |
| |
For three months
ended |
| |
Dec. 31, 2009 |
Sept. 30, 2010 |
Dec. 31, 2010 |
Dec. 31, 2010 |
| |
RMB'000 |
RMB'000 |
RMB'000 |
USD'000 |
| |
Adjusted |
Adjusted |
|
|
| |
(a),(b) |
(b) |
|
|
| |
|
|
|
|
| Net revenues |
1,627,042 |
3,618,796 |
3,856,189 |
584,271 |
| Cost of sales |
(1,292,033) |
(2,802,820) |
(3,115,776) |
(472,087) |
| Gross profit |
335,009 |
815,976 |
740,413 |
112,184 |
| Selling, general and administrative
expenses |
(79,285) |
(123,573) |
(135,863) |
(20,585) |
| Research and development expenses |
(9,027) |
(23,082) |
(13,894) |
(2,105) |
| Total operating expenses |
(88,312) |
(146,655) |
(149,757) |
(22,690) |
| Income from operations |
246,697 |
669,321 |
590,656 |
89,494 |
| Interest expense |
(48,603) |
(56,326) |
(64,928) |
(9,838) |
| Loss on buyback of convertible bond |
(9,468) |
- |
- |
- |
| Other (loss)/income (c) |
(42,388) |
(17,127) |
355,317 |
53,836 |
| Income before income taxes |
146,238 |
595,868 |
881,045 |
133,492 |
| Income tax expenses |
(15,810) |
(85,528) |
(78,100) |
(11,833) |
| Net income from continuing operations |
130,428 |
510,340 |
802,945 |
121,659 |
| Net gain/(loss) from discontinued
operations |
5,441 |
3,344 |
(19,607) |
(2,971) |
| Net income |
135,869 |
513,684 |
783,338 |
118,688 |
| |
|
|
|
|
| Net income per share: |
|
|
|
|
| Basic |
0.84 |
3.15 |
4.79 |
0.73 |
| Diluted |
0.84 |
3.14 |
3.90 |
0.59 |
| |
|
|
|
|
| Weighted average number of shares
outstanding: |
|
|
|
|
| Basic |
161,979,819 |
163,065,242 |
163,382,659 |
163,382,659 |
| Diluted |
162,272,950 |
163,668,148 |
172,306,566 |
172,306,566 |
| |
|
| |
|
| JA Solar Holdings Co.,
Ltd. |
|
| Condensed Consolidated
Statements of Operations |
|
|
(Unaudited) |
|
| |
For twelve months
ended |
|
| |
Dec. 31, 2009 |
Dec. 31, 2010 |
Dec. 31, 2010 |
|
| |
RMB'000 |
RMB'000 |
USD'000 |
|
| |
Adjusted |
|
|
|
| |
(a),(b) |
|
|
|
| |
|
|
|
|
| Net revenues |
3,778,553 |
11,760,780 |
1,781,936 |
|
| Cost of sales |
(3,296,502) |
(9,214,394) |
(1,396,120) |
|
| Gross profit |
482,051 |
2,546,386 |
385,816 |
|
| Selling, general and administrative
expenses |
(343,253) |
(505,101) |
(76,530) |
|
| Research and development expenses |
(45,101) |
(63,816) |
(9,669) |
|
| Total operating expenses |
(388,354) |
(568,917) |
(86,199) |
|
| Income from operations |
93,697 |
1,977,469 |
299,617 |
|
| Interest expense |
(231,487) |
(221,209) |
(33,516) |
|
| Loss on buyback of convertible bond |
(24,156) |
- |
- |
|
| Other (loss)/income (c) |
(26,969) |
271,628 |
41,155 |
|
| (Loss)/income before income taxes |
(188,915) |
2,027,888 |
307,256 |
|
| Income tax expenses |
(7,999) |
(252,707) |
(38,289) |
|
| Net (loss)/income from continuing
operations |
(196,914) |
1,775,181 |
268,967 |
|
| Net income/(loss) from discontinued
operations |
3,415 |
(19,830) |
(3,005) |
|
| Net (loss)/income |
(193,499) |
1,755,351 |
265,962 |
|
| |
|
|
|
|
| Net (loss)/income per share: |
|
|
|
|
| Basic |
(1.20) |
10.78 |
1.63 |
|
| Diluted |
(1.20) |
10.61 |
1.61 |
|
| |
|
|
|
|
| Weighted average number of shares
outstanding: |
|
|
|
|
| Basic |
161,643,312 |
162,900,657 |
162,900,657 |
|
| Diluted |
161,643,312 |
171,116,684 |
171,116,684 |
|
| |
|
|
|
|
| |
|
|
|
|
| (a) On January 1, 2010, the
Company adopted the FASB's update to the Debt topic of the FASB
codification which requires an entity that enters into an
equity-classified share lending agreement, utilizing its own
shares, in contemplation of a convertible debt issuance or other
financing to initially measure the share lending arrangement at
fair value and treat it as a cost of the financing. In addition, if
it becomes probable that the counterparty to the arrangement will
default, the issuer shall recognize an expense for the fair value
of the unreturned shares, net of probable recoveries. These rules
require revision of prior periods to conform to current
accounting. As a result of retrospectively adopting the new
guidance related to the Company's offering of senior convertible
notes in May 2008, the line items of Interest expense, Gain/(loss)
on buyback of convertible bond, Other income, Income before income
taxes, Net income and Net income/(loss) per share in the condensed
consolidated statements of operations for the three months ended
Dec 31, 2009 and twelve months ended Dec 31, 2009 have been
revised. |
| |
|
|
|
|
| (b) In Q4 we have determined to
dispose of a subsidiary which was mainly focusing on the solar
power plant business. The subsidiary represented a component
of an entity as defined by ASC 205 "Presentation of Financial
Statements". As such, the operating results of this subsidiary
have been reclassified out of continuing operations for all periods
presented. |
| |
|
|
|
|
| c) Other (loss)/income mainly
consists of proceeds from sales of Lehman Notes and change in fair
value of derivatives. |
| |
|
|
| |
|
|
| JA Solar Holdings Co.,
Ltd. |
|
|
| Condensed Consolidated
Balance Sheets |
|
|
|
(Unaudited) |
|
| |
|
|
|
|
|
| |
Dec. 31, |
Dec. 31, |
|
|
| |
2009 |
2010 |
2010 |
|
|
| |
RMB'000 |
RMB'000 |
USD'000 |
|
|
| |
Adjusted |
|
|
|
|
| |
(d) |
|
|
|
|
| |
|
|
|
| ASSETS |
|
|
|
|
|
| Current assets: |
|
|
|
|
|
| Cash and cash equivalents |
1,867,248 |
2,289,482 |
346,891 |
|
|
| Restricted cash |
43,612 |
112,593 |
17,060 |
|
|
| Accounts receivable |
339,524 |
945,633 |
143,278 |
|
|
| Inventories |
641,140 |
1,349,329 |
204,444 |
|
|
| Advances to suppliers |
423,283 |
605,630 |
91,762 |
|
|
| Other current assets |
346,488 |
1,115,561 |
169,024 |
|
|
| Total current assets |
3,661,295 |
6,418,228 |
972,459 |
|
|
| Property and equipment, net |
1,724,442 |
3,170,721 |
480,413 |
|
|
| Advances to suppliers |
1,835,421 |
1,653,177 |
250,481 |
|
|
| Derivative asset |
10,521 |
14,591 |
2,211 |
|
|
| Deferred issuance cost |
143,243 |
110,868 |
16,798 |
|
|
| Other long term assets |
87,248 |
251,797 |
38,150 |
|
|
| Total assets |
7,462,170 |
11,619,382 |
1,760,512 |
|
|
| LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
| Short-term bank borrowings |
10,000 |
- |
- |
|
|
| Accounts payable |
367,863 |
1,036,416 |
157,033 |
|
|
| Advances from customers |
53,859 |
484,458 |
73,404 |
|
|
| Accrued and other liabilities |
197,506 |
522,769 |
79,206 |
|
|
| Total current
liabilities |
629,228 |
2,043,643 |
309,643 |
|
|
| Convertible Bond |
1,171,438 |
1,230,175 |
186,390 |
|
|
| Embedded derivatives |
136,632 |
66,174 |
10,026 |
|
|
| Long-term bank borrowings |
680,000 |
1,520,000 |
230,303 |
|
|
| Other long term liabilities |
22,314 |
79,235 |
12,005 |
|
|
| Total liabilities |
2,639,612 |
4,939,227 |
748,367 |
|
|
| Commitment and
Contingencies |
|
|
|
|
|
| Shareholders' equity |
4,822,558 |
6,680,155 |
1,012,145 |
|
|
| Total liabilities and shareholders'
equity |
7,462,170 |
11,619,382 |
1,760,512 |
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| (d) On January 1, 2010, the
Company adopted the FASB's update to the Debt topic of the FASB
codification which requires an entity that enters into an
equity-classified share lending agreement, utilizing its own
shares, in contemplation of a convertible debt issuance or other
financing to initially measure the share lending arrangement at
fair value and treat it as a cost of the financing. In addition, if
it becomes probable that the counterparty to the arrangement will
default, the issuer shall recognize an expense for the fair value
of the unreturned shares, net of probable recoveries. These rules
require revision of prior periods to conform to current
accounting. As a result of retrospectively adopting the new
guidance related to the Company's offering of senior convertible
notes in May 2008, the line items of Deferred issuance cost and
Shareholders' equity in the condensed consolidated balance sheet as
at December 31, 2009 have been revised. |
|
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
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