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, 2016.
Third Quarter 2016 Highlights
- Total shipments were 1,240.9
megawatts
(“MW”), nearly
all of which were modules and cells shipped to
external customers. External shipments were
up +10.1% y/y
and up +0.9%
sequentially
- Shipments of modules and module
tolling were 1,200.0
MW, an increase of +11.8%
y/y and +5.8%
sequentially
- Shipments of cells and cell
tolling were 40.9
MW, a decrease
of 22.8% y/y and
57.0% sequentially
- Net revenue was RMB
4.2 billion
($624.3
million), an increase of
+9.0% y/y and
+1.2 %
sequentially
- Gross margin was
13.8%, a decrease of
390 basis points y/y
and 150 basis points
sequentially
- Operating profit was RMB
121.4 million
($18.2 million),
compared to RMB 299.1
million ($44.9
million) in
the third quarter of
2015, and RMB 188.0 million
($28.2 million) in the second quarter of 2016
- Net income was RMB 44.1
million ($6.6
million), compared to RMB 258.6 million
($38.8 million) in the third quarter of 2015, and RMB 164.1 million
($24.6 million) in the second quarter of 2016
- Earnings per diluted ADS were RMB 0.86
or $0.13, compared to RMB 4.42 or
$0.66 in the third quarter of 2015, and RMB 2.87 or $0.43 in the
second quarter of 2016
- Cash and cash
equivalents were
RMB 2.0 billion
($298.2
million), a
decrease of RMB
25.1million ($3.8
million) during the quarter
- Non-GAAP earnings[1] per diluted ADS were RMB
0.86 or $0.13, compared
to RMB 4.35 or $0.65 in the third quarter of 2015, and RMB 2.04 or
$0.31 in the second quarter of 2016
Mr. Baofang Jin, Chairman and CEO of JA Solar,
commented, “Third quarter results were in-line with our
expectations with external shipments and revenue growing 10% and 9%
year-over-year, respectively. We executed our strategy to redirect
solar product sales to several stronger international markets, as
shipments to the domestic market of China declined significantly
after demand was pulled forward into Q2. Furthermore, our
downstream strategy remains intact. We have approximately 50 MW of
downstream projects under construction and intend to develop
another 150 to 200 MW in the coming year.”
Mr. Jin continued, “While we anticipate more
market headwinds in the near-term, we are confident that our
favorable geographic exposure, prudent cost control and flexible
business model will enable us to succeed. As market conditions
improve, we will be positioned for strong long-term growth.”
All shipment and financial figures refer to the
quarter ended September 30, 2016, unless otherwise specified. All
“year over year” or “y/y” comparisons are against the quarter ended
September 30, 2015. All “sequential” comparisons are against the
quarter ended June 30, 2016.
Total shipments were 1,240.9 MW, exceeding the
low end of the previously announced guidance range of 1,200 to
1,300 MW. External shipments of 1,240.9 MW increased 10.1% year
over year and 0.9% sequentially.
External shipments breakdown by product (MW)
|
2015Q3 |
2016Q2 |
2016Q3 |
QoQ% |
YoY% |
Modules and module tolling |
1,073.8 |
1,134.2 |
1,200.0 |
|
5.8 |
% |
|
11.8 |
% |
Cells and cell tolling |
53.0 |
95.1 |
40.9 |
|
-57.0 |
% |
|
-22.8 |
% |
Total |
1,126.8 |
1229.3 |
1,240.9 |
|
0.9 |
% |
|
10.1 |
% |
External shipments breakdown by region
(percentage)
|
2015Q3 |
2016Q2 |
2016Q3 |
QoQ(pp) |
YoY(pp) |
China |
|
53.1 |
% |
|
63.9 |
% |
|
32.0 |
% |
-31.9pp |
-21.1pp |
APAC ex-China |
|
36.3 |
% |
|
12.0 |
% |
|
25.8 |
% |
13.8pp |
-10.5pp |
Europe |
|
7.8 |
% |
|
3.7 |
% |
|
6.5 |
% |
2.8pp |
-1.3pp |
North America |
|
1.0 |
% |
|
9.3 |
% |
|
13.0 |
% |
3.7pp |
12.0pp |
South America |
|
0 |
% |
|
9.9 |
% |
|
20.2 |
% |
10.3pp |
20.2pp |
Others |
|
1.8 |
% |
|
1.2 |
% |
|
2.5 |
% |
1.3pp |
0.7pp |
Net revenue was RMB 4.2 billion ($624.3
million), an increase of +9.0% y/y and +1.2% sequentially.
Gross profit of RMB 574.5 million ($86.1
million) decreased 15.2% y/y and 8.6% sequentially. Gross margin
was 13.8%, which compares to 17.7% in the year-ago quarter, and
15.3% in the second quarter of 2016.
Total operating expenses of RMB 453.1 million
($67.9 million) were 10.9% of revenue. This compares to operating
expenses of 9.9% of revenue in the year-ago quarter, and 10.7% of
revenue in the second quarter of 2016.
Operating profit was RMB 121.4 million ($18.2
million), compared to RMB 299.1 million ($44.9 million) in the
year-ago quarter, and RMB 188.0 million ($28.2 million) in the
second quarter of 2016. Operating margin was 2.9%, compared with
7.8% in the prior year period and 4.6% in the previous quarter.
Interest expense was RMB 75.4 million ($11.3
million), compared to RMB 58.2 million ($8.7 million) in the
year-ago quarter, and RMB 68.8 million ($10.3 million) in the
second quarter of 2016.
The change in fair value of warrant derivatives
was a gain of RMB 17.0 thousand ($2.6 thousand), compared with RMB
4.4 million ($0.7 million) in the year-ago quarter, and RMB 47.4
million ($7.1 million) in the second quarter of 2016. 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 0.86 or $0.13,
compared to earnings per diluted ADS of RMB 4.42 or $0.66 in the
year-ago quarter, and earnings per diluted ADS of RMB 2.87 or $0.43
in the second quarter of 2016.
Liquidity
As of September 30, 2016, the Company had cash
and cash equivalents of RMB 2.0 billion ($298.2 million), and total
working capital of RMB 1.5 billion ($228.8 million). Total
short-term borrowings were RMB 2.9 billion ($429.0 million). Total
long-term borrowings were RMB 3.1 billion ($467.8 million), of
which RMB 536.3 million ($80.4 million) were due in one year.
Business Outlook
For the fourth quarter of 2016, the Company
expects total cell and module shipments to be in the range of 1,200
to 1,300 MW, with essentially all being external shipments.
Accordingly, full year 2016 shipments are expected to range from
4.9 GW to 5.0 GW, below the Company’s previous guidance of 5.2 GW
to 5.5 GW.
Investor Conference Call / Webcast Details
JA Solar's management will host an earnings conference call on
November 17, 2016 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 Number |
Toll-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 “JA
Solar".
A replay of the conference call may be accessed by phone at the
following numbers until November 25, 2016. To access the replay,
please reference the conference ID 13977699.
|
Phone Number |
Toll-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, 2016, which
was RMB 6.6685 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,
2016, 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 4.0 GW of solar power products in 2015. 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.
For more information, please visit
www.jasolar.com.
[1] JA Solar adjusts net income attributable to
the Company's ordinary shareholders to exclude (1) changes in fair
value of certain warrants granted to certain investors in a
registered direct offering (the "Offering") closed on August 16,
2013, and (2) fair value of such warrants exceeding net proceeds
from the Offering.
JA Solar Holdings Co., Ltd. |
|
Condensed Consolidated Statements of
Operations and Comprehensive Income |
|
(Unaudited) |
|
|
For three months ended |
|
|
Sep. 30, 2015 |
Jun. 30, 2016 |
Sep. 30, 2016 |
Sep. 30, 2016 |
|
|
RMB'000 |
RMB'000 |
RMB'000 |
USD'000 |
|
|
|
|
|
|
|
Net
revenues |
|
3,819,510 |
|
|
4,113,592 |
|
|
4,162,927 |
|
|
624,267 |
|
|
Cost of
sales |
|
(3,141,961 |
) |
|
(3,485,300 |
) |
|
(3,588,469 |
) |
|
(538,122 |
) |
|
Gross
profit |
|
677,549 |
|
|
628,292 |
|
|
574,458 |
|
|
86,145 |
|
|
Selling,
general and administrative expenses |
|
(344,152 |
) |
|
(396,294 |
) |
|
(406,194 |
) |
|
(60,912 |
) |
|
Research
and development expenses |
|
(34,278 |
) |
|
(44,043 |
) |
|
(46,871 |
) |
|
(7,029 |
) |
|
Total
operating expenses |
|
(378,430 |
) |
|
(440,337 |
) |
|
(453,065 |
) |
|
(67,941 |
) |
|
Income
from operations |
|
299,119 |
|
|
187,955 |
|
|
121,393 |
|
|
18,204 |
|
|
Interest
expense |
|
(58,213 |
) |
|
(68,804 |
) |
|
(75,378 |
) |
|
(11,304 |
) |
|
Change
in fair value of warrant derivatives |
|
4,394 |
|
|
47,417 |
|
|
17 |
|
|
3 |
|
|
Other
income, net |
|
74,301 |
|
|
30,878 |
|
|
10,450 |
|
|
1,567 |
|
|
Income
before income taxes |
|
319,601 |
|
|
197,446 |
|
|
56,482 |
|
|
8,470 |
|
|
Income
tax expense |
|
(61,014 |
) |
|
(33,357 |
) |
|
(12,361 |
) |
|
(1,854 |
) |
|
Net
income |
|
258,587 |
|
|
164,089 |
|
|
44,121 |
|
|
6,616 |
|
|
Less:
income/(loss) attributable to noncontrolling interest |
|
(644 |
) |
|
388 |
|
|
(715 |
) |
|
(107 |
) |
|
Net
income attributable to JA Solar Holdings |
|
259,231 |
|
|
163,701 |
|
|
44,836 |
|
|
6,723 |
|
|
|
|
|
|
|
|
Net
income per share attributable to ordinary shareholders: |
|
|
|
|
|
Basic |
|
0.88 |
|
|
0.57 |
|
|
0.17 |
|
|
0.03 |
|
|
Diluted |
|
0.88 |
|
|
0.57 |
|
|
0.17 |
|
|
0.03 |
|
|
|
|
|
|
|
|
Weighted
average number of shares outstanding: |
|
|
|
|
|
Basic |
|
242,328,656 |
|
|
234,290,842 |
|
|
234,290,842 |
|
|
234,290,842 |
|
|
Diluted |
|
242,473,131 |
|
|
234,443,142 |
|
|
234,338,817 |
|
|
234,338,817 |
|
|
|
|
|
|
|
|
Comprehensive income |
|
|
|
|
|
Net
income |
|
258,587 |
|
|
164,089 |
|
|
44,121 |
|
|
6,616 |
|
|
Foreign currency translation adjustments, net of tax |
|
(32,876 |
) |
|
(22,068 |
) |
|
(3,776 |
) |
|
(566 |
) |
|
Other
comprehensive loss |
|
(32,876 |
) |
|
(22,068 |
) |
|
(3,776 |
) |
|
(566 |
) |
|
Comprehensive income |
|
225,711 |
|
|
142,021 |
|
|
40,345 |
|
|
6,050 |
|
|
Income/(loss) attributable to noncontrolling interest |
|
(644 |
) |
|
388 |
|
|
(715 |
) |
|
(107 |
) |
|
Comprehensive income attributable to JA Solar Holdings |
|
226,355 |
|
|
141,633 |
|
|
41,060 |
|
|
6,157 |
|
|
|
|
|
|
|
|
NON-GAAP
RECONCILIATION |
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income attributable to JA Solar Holdings |
|
259,231 |
|
|
163,701 |
|
|
44,836 |
|
|
6,723 |
|
|
Change
in fair value of warrant derivatives |
|
(4,394 |
) |
|
(47,417 |
) |
|
(17 |
) |
|
(3 |
) |
|
Non-GAAP
net income attributable to JA Solar Holdings |
|
254,837 |
|
|
116,284 |
|
|
44,819 |
|
|
6,720 |
|
|
|
|
|
|
|
|
Non-GAAP
net income per share attributable to ordinary shareholders: |
|
|
|
|
|
Basic |
|
0.87 |
|
|
0.41 |
|
|
0.17 |
|
|
0.03 |
|
|
Diluted |
|
0.87 |
|
|
0.41 |
|
|
0.17 |
|
|
0.03 |
|
|
|
|
|
|
|
|
Non-GAAP
weighted average number of shares outstanding: |
|
|
|
|
|
Basic |
|
242,328,656 |
|
|
234,290,842 |
|
|
234,290,842 |
|
|
234,290,842 |
|
|
Diluted |
|
242,473,131 |
|
|
234,443,142 |
|
|
234,338,817 |
|
|
234,338,817 |
|
|
|
|
|
|
|
|
Note: JA Solar excludes net income attributable to the
participating warrant holder of RMB 4.5 million (US$0.7 million)
from the numerator of basic EPS in the third quarter of 2016. |
|
JA Solar Holdings Co., Ltd. |
|
Condensed Consolidated Statements of
Operations |
|
(Unaudited) |
|
|
For nine months ended |
|
|
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2016 |
|
|
RMB'000 |
RMB'000 |
USD'000 |
|
|
|
|
|
|
Net
revenues |
|
8,930,960 |
|
|
11,746,233 |
|
|
1,761,451 |
|
|
Cost of
sales |
|
(7,422,460 |
) |
|
(9,968,121 |
) |
|
(1,494,807 |
) |
|
Gross
profit |
|
1,508,500 |
|
|
1,778,112 |
|
|
266,644 |
|
|
Selling,
general and administrative expenses |
|
(796,614 |
) |
|
(1,114,964 |
) |
|
(167,199 |
) |
|
Research
and development expenses |
|
(107,012 |
) |
|
(130,513 |
) |
|
(19,572 |
) |
|
Total
operating expenses |
|
(903,626 |
) |
|
(1,245,477 |
) |
|
(186,771 |
) |
|
Income
from operations |
|
604,874 |
|
|
532,635 |
|
|
79,873 |
|
|
Interest
expense |
|
(183,364 |
) |
|
(211,455 |
) |
|
(31,710 |
) |
|
Change
in fair value of warrant derivatives |
|
25,596 |
|
|
70,882 |
|
|
10,629 |
|
|
Other
income, net |
|
82,820 |
|
|
57,610 |
|
|
8,639 |
|
|
Income
before income taxes |
|
529,926 |
|
|
449,672 |
|
|
67,431 |
|
|
Income
tax expenses |
|
(100,337 |
) |
|
(83,487 |
) |
|
(12,520 |
) |
|
Net
income |
|
429,589 |
|
|
366,185 |
|
|
54,911 |
|
|
Less:
income/(loss) attributable to noncontrolling interest |
|
(663 |
) |
|
990 |
|
|
148 |
|
|
Net
income attributable to JA Solar Holdings |
|
430,252 |
|
|
365,195 |
|
|
54,763 |
|
|
|
|
|
|
|
Net
income per share attributable to ordinary shareholders: |
|
|
|
|
Basic |
|
1.45 |
|
|
1.32 |
|
|
0.20 |
|
|
Diluted |
|
1.44 |
|
|
1.32 |
|
|
0.20 |
|
|
|
|
|
|
|
Weighted
average number of shares outstanding: |
|
|
|
|
Basic |
|
246,627,317 |
|
|
234,290,842 |
|
|
234,290,842 |
|
|
Diluted |
|
246,868,295 |
|
|
234,434,640 |
|
|
234,434,640 |
|
|
|
|
|
|
|
Comprehensive income |
|
|
|
|
Net
income |
|
429,589 |
|
|
366,185 |
|
|
54,911 |
|
|
Foreign currency translation adjustments, net of tax |
|
(30,810 |
) |
|
(25,984 |
) |
|
(3,897 |
) |
|
Other
comprehensive loss |
|
(30,810 |
) |
|
(25,984 |
) |
|
(3,897 |
) |
|
Comprehensive income |
|
398,779 |
|
|
340,201 |
|
|
51,014 |
|
|
Income/(loss) attributable to noncontrolling interest |
|
(663 |
) |
|
990 |
|
|
148 |
|
|
Comprehensive income attributable to JA Solar Holdings |
|
399,442 |
|
|
339,211 |
|
|
50,866 |
|
|
|
|
|
|
|
NON-GAAP
RECONCILIATION |
|
|
|
|
|
|
|
|
|
GAAP net
income attributable to JA Solar Holdings |
|
430,252 |
|
|
365,195 |
|
|
54,763 |
|
|
Change
in fair value of warrant derivatives |
|
(25,596 |
) |
|
(70,882 |
) |
|
(10,629 |
) |
|
Non-GAAP
net income attributable to JA Solar Holdings |
|
404,656 |
|
|
294,313 |
|
|
44,134 |
|
|
|
|
|
|
|
Non-GAAP
net income per share attributable to ordinary shareholders: |
|
|
|
|
Basic |
|
1.36 |
|
|
1.06 |
|
|
0.16 |
|
|
Diluted |
|
1.36 |
|
|
1.06 |
|
|
0.16 |
|
|
|
|
|
|
|
Non-GAAP
weighted average number of shares outstanding: |
|
|
|
|
Basic |
|
246,627,317 |
|
|
234,290,842 |
|
|
234,290,842 |
|
|
Diluted |
|
246,868,295 |
|
|
234,434,640 |
|
|
234,434,640 |
|
|
JA Solar Holdings Co., Ltd. |
|
Condensed Consolidated Balance
Sheets |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Dec. 31, |
Sep. 30, |
|
|
2015 |
|
|
2016 |
|
|
2016 |
|
|
RMB'000 |
|
|
RMB'000 |
|
|
USD'000 |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
2,883,294 |
|
|
1,988,819 |
|
|
298,241 |
|
Restricted cash |
663,518 |
|
|
759,566 |
|
|
113,904 |
|
Accounts
receivable |
2,872,775 |
|
|
3,191,666 |
|
|
478,618 |
|
Notes
receivable |
837,711 |
|
|
152,461 |
|
|
22,863 |
|
Inventories |
1,660,543 |
|
|
2,628,699 |
|
|
394,197 |
|
Advances
to suppliers |
473,310 |
|
|
274,476 |
|
|
41,160 |
|
Other
current assets |
633,354 |
|
|
1,178,816 |
|
|
176,774 |
|
Total current assets |
10,024,505 |
|
|
10,174,503 |
|
|
1,525,757 |
|
Property
and equipment, net |
4,365,348 |
|
|
5,201,064 |
|
|
779,945 |
|
Project
asset |
1,028,615 |
|
|
2,313,280 |
|
|
346,897 |
|
Advances
to suppliers |
195,341 |
|
|
114,359 |
|
|
17,149 |
|
Prepaid
land use rights |
428,495 |
|
|
528,265 |
|
|
79,218 |
|
Long-term investment |
55,169 |
|
|
66,994 |
|
|
10,046 |
|
Other
long term assets |
208,430 |
|
|
263,173 |
|
|
39,465 |
|
Total assets |
16,305,903 |
|
|
18,661,638 |
|
|
2,798,477 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Short-term borrowings |
2,194,957 |
|
|
2,860,456 |
|
|
428,950 |
|
Accounts
payable |
2,389,467 |
|
|
2,689,848 |
|
|
403,366 |
|
Advances
from customers |
691,867 |
|
|
475,496 |
|
|
71,305 |
|
Current
portion of long term borrowings |
238,400 |
|
|
536,338 |
|
|
80,429 |
|
Derivative liabilities-warrants |
71,237 |
|
|
- |
|
|
- |
|
Accrued
and other liabilities |
1,588,885 |
|
|
2,086,639 |
|
|
312,911 |
|
Total current liabilities |
7,174,813 |
|
|
8,648,777 |
|
|
1,296,961 |
|
Long-term borrowings |
2,461,017 |
|
|
2,583,444 |
|
|
387,410 |
|
Other
long term liabilities |
752,925 |
|
|
1,170,290 |
|
|
175,495 |
|
Total liabilities |
10,388,755 |
|
|
12,402,511 |
|
|
1,859,866 |
|
Total JA Solar Holdings shareholders' equity |
5,819,695 |
|
|
6,160,484 |
|
|
923,819 |
|
Noncontrolling interest |
97,453 |
|
|
98,643 |
|
|
14,792 |
|
Total shareholders' equity |
5,917,148 |
|
|
6,259,127 |
|
|
938,611 |
|
Total liabilities and shareholders’ equity |
16,305,903 |
|
|
18,661,638 |
|
|
2,798,477 |
|
|
|
|
|
|
|
|
|
|
Contact:
The Blueshirt Group
Ralph Fong
Phone: +1 (415) 489-2195
Email: ralph@blueshirtgroup.com
JA Solar Holdings, Co., Ltd. ADS, Each Representing Five Ordinary Shares (delisted) (NASDAQ:JASO)
Historical Stock Chart
From Aug 2024 to Sep 2024
JA Solar Holdings, Co., Ltd. ADS, Each Representing Five Ordinary Shares (delisted) (NASDAQ:JASO)
Historical Stock Chart
From Sep 2023 to Sep 2024