* Total revenues for 2Q07 of RMB 457.0 million (US$60.0 million) compared to revenues of RMB 96.1 million (US$12.6 million) for 2Q06 * 2Q07 net income of RMB 1.63 (US$0.21) per diluted ADS compared to RMB 0.67(US$0.09) per diluted ADS in 2Q06 * Total capacity has reached 175MW per annum
HEBEI, China, Aug. 8, 2007 (PRIME NEWSWIRE) -- JA Solar Holdings Co., Ltd. ("JA Solar", "the Company") (Nasdaq:JASO) today reported financial results for the second quarter ended June 30, 2007.
Second Quarter 2007 Results
Total revenues for the second quarter of 2007 were RMB 457.0 million (US$60.0 million), compared to revenues of RMB 96.1 million (US$12.6 million) for the second quarter of 2006, and RMB 335.1 million (US$44.0 million) in the first quarter of 2007. The second quarter of 2007 revenues included solar cells processing service revenue of RMB 26.2 million (US$3.4 million), compared to Nil in the second quarter of 2006 and RMB 0.1 million (US$0.02 million) in the first quarter of 2007.
Total gross profit for the second quarter of 2007 was RMB 110.1 million (US$14.5 million), including solar cells processing service profit of RMB 19.8 million (US$2.6 million). Total gross margin was 24.10% for the second quarter of 2007. Excluding solar cells processing service gross profit, our gross margin was 20.96% compared to 20.50% in the first quarter of 2007.
Net income available to ordinary shareholders for the second quarter of 2007 was RMB 75.7 million (US$9.9 million) compared to a net income available to ordinary shareholders of RMB 17.8 million (US$2.3 million) for the second quarter of 2006, and net income available to ordinary shareholders of RMB 58.3 million (US$7.7 million) for the first quarter of 2007.
For the second quarter of 2007 basic and diluted earnings per ADS were RMB 1.64 (US$0.22) and RMB 1.63 (US$0.21) respectively. Each ADS represents three of our ordinary shares.
The second quarter of 2007 expenses included share-based compensation expense of RMB 12.0 million (US$1.6 million), or RMB 0.26 (US$ 0.03) per diluted ADS.
Capital expenditures were RMB 47.4 million (US$6.2 million) in the second quarter of 2007, as compared to RMB 101.2 million (US$13.3 million) in the previous quarter and RMB 39.6 million (US$5.2 million) in the second quarter of 2006. Depreciation and amortization expenses in the second quarter of 2007 were RMB 6.3 million (US$0.8 million), as compared to RMB 5.2 million (US$0.7 million) in the previous quarter and RMB 2.1 million (US$0.3 million) in the second quarter of 2006.
As of June 30, 2007, JA Solar had cash and cash equivalents of RMB 1.6 billion (US$205.7 million) compared with RMB 1.8 billion (US$235.9 million) at the end of the first quarter of 2007. Short term debt decreased to RMB 150 million (US$19.7 million) at the end of the second quarter of 2007 from RMB 200 million (US$26.3 million) at the end of the first quarter of 2007.
Set out below is a summary of megawatts produced and shipped (including processing service):
---------------------------------------------------------------------
Three months ended
---------------------------------------------------------------------
Megawatts June 30, 2006 March 31, 2007 June 30, 2007
---------------------------------------------------------------------
Produced 3.0MW 17.6MW 22.6MW
---------------------------------------------------------------------
Shipped 3.1MW 14.4MW 24.0MW
---------------------------------------------------------------------
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, 2007, which was RMB 7.6120 to US$1.0000. 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, 2007, or at any other date. The percentages stated in this press release are calculated based on Renminbi.
Samuel Yang, JA Solar's Chief Executive Officer, said, "Our business momentum and track record of execution continued in the second quarter. Results came in at or above the high-end of our internal target for revenue, gross margin and net income. Four new production lines commenced production ahead of schedule. The JA Solar brand is becoming the standard for high-quality, high-performance monocrystalline solar cells. We remain focused on leveraging this differentiated position to further our customer diversification and global expansion efforts."
Herman Zhao, JA Solar's Chief Financial Officer, said, "Gross margin increased in the second quarter of 2007 from the first quarter of 2007 despite incurring routine costs. We now have a total of 175 MW of solar cell manufacturing capacity per annum. As we move into the second half of the year we will begin to solidify our capacity expansion plans for 2008 based on customer forecasts."
Company Raises 2007 Outlook
Based on current market conditions and customer forecasts, the Company is raising its production outlook for 2007 from approximately 100MW to 110MW. This would result in revenues for the full year of 2007 in the range of approximately RMB 2,284 million (US$300 million) to RMB 2,360 million (US$310 million), with a gross margin expected to be approximately 19.5%, compared to prior guidance for revenues in the range of RMB 2,128 million (US$280 million) to RMB 2,205 million (US$290 million), with a gross margin expected to be approximately 19.5%.
Samuel Yang, JA Solar's Chief Executive Officer, said, "We remain optimistic in our outlook for the second half of 2007. The increase in our guidance for the full year of 2007 reflects the strong demand globally for our high-quality, high-performance monocrystalline solar cells. We continue to diversify our customer base to take advantage of beneficial strategic relationships."
Investor Conference Call / Webcast Details
A conference call has been scheduled for 9:00 p.m. on Wednesday, August 8, 2007 (in Hebei). This will be 9:00 a.m. on Wednesday, August 8, in New York. During the call, time will be set aside for analysts and interested investors to ask questions of executive officers.
The call may be accessed by dialing +1-201-689-8560. A live webcast of the conference call will be available on the Company's website at www.jasolar.com. The playback will be available beginning two hours after the live call and will be accessible by dialing +1-201-612-7415. The account number to access the replay is 3055 and the passcode is 250008.
About JA Solar Holdings Co., Ltd.
Based in Hebei, China, JA Solar Holdings Co., Ltd. is an emerging and fast-growing manufacturer of high-performance monocrystalline solar cells. The Company sells its products to solar module manufacturers who assemble and integrate its solar cells into modules and systems that convert sunlight into electricity. For more information, please visit http://www.jasolar.com.
Safe Harbor Statement
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 "will," "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 our annual report on 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.
JA Solar Holdings Co., Ltd.
Condensed Consolidated Statements of Operations
(Unaudited)
Three months ended
-------------------------
June 30, 2006
RMB USD
-------------------------
Revenue from sale of goods
Revenue from third parties 29,221,438 3,838,865
Revenue from related parties 66,855,248 8,782,875
Revenue from processing service -- --
----------- -----------
Total revenues 96,076,686 12,621,740
Cost of revenue from sale of goods (73,080,301) (9,600,670)
Cost of revenue from processing service -- --
----------- -----------
Total cost of revenues (73,080,301) (9,600,670)
----------- -----------
Gross profit 22,996,385 3,021,070
Selling, general and administrative
expenses (4,156,126) (545,997)
Research and development expenses (136,851) (17,978)
----------- -----------
Total operating expenses (4,292,977) (563,975)
----------- -----------
Income/ (loss) from operations 18,703,408 2,457,095
----------- -----------
Interest expense (1,186,748) (155,905)
Interest income 63,949 8,401
Other income -- --
Foreign exchange gain/ (loss) 177,214 23,281
----------- -----------
Income/ (loss) before income taxes 17,757,823 2,332,872
Income tax benefit/ (expense) -- --
Net income/ (loss) 17,757,823 2,332,872
----------- -----------
Preferred shares accretion -- --
Allocation of income to participating
preferred share holders -- --
----------- -----------
Net income available to ordinary
shareholders 17,757,823 2,332,872
=========== ===========
Net income/(loss) per ordinary shares
Basic 0.222 0.029
Diluted 0.222 0.029
Weighted average number of ordinary
shares outstanding:
Basic 80,000,000 80,000,000
Diluted 80,000,000 80,000,000
Net income/(loss) per ADS
Basic 0.666 0.087
Diluted 0.666 0.087
Weighted average number of ADS outstanding:
Basic 26,666,667 26,666,667
Diluted 26,666,667 26,666,667
Each ADS represents 3 ordinary shares
Three months ended
-------------------------
March 31, 2007
RMB USD
-------------------------
Revenue from sale of goods
Revenue from third parties 334,553,384 43,950,786
Revenue from related parties 480,467 63,120
Revenue from processing service 115,856 15,220
----------- -----------
Total revenues 335,149,707 44,029,126
Cost of revenue from sale of goods (266,350,597) (34,990,882)
Cost of revenue from processing service (44,181) (5,804)
----------- -----------
Total cost of revenues (266,394,778) (34,996,687)
----------- -----------
Gross profit 68,754,929 9,032,439
Selling, general and administrative
expenses (9,772,067) (1,283,771)
Research and development expenses (920,169) (120,884)
----------- -----------
Total operating expenses (10,692,236) (1,404,655)
----------- -----------
Income/ (loss) from operations 58,062,693 7,627,784
----------- -----------
Interest expense (2,815,537) (369,881)
Interest income 11,492,103 1,509,735
Other income -- --
Foreign exchange gain/ (loss) (6,232,712) (818,801)
----------- -----------
Income/ (loss) before income taxes 60,506,547 7,948,837
Income tax benefit/ (expense) -- --
Net income/ (loss) 60,506,547 7,948,837
----------- -----------
Preferred shares accretion (515,251) (67,689)
Allocation of income to participating
preferred share holders (1,648,040) (216,506)
----------- -----------
Net income available to ordinary
shareholders 58,343,256 7,664,642
=========== ===========
Net income/(loss) per ordinary shares
Basic 0.529 0.069
Diluted 0.525 0.069
Weighted average number of ordinary
shares outstanding:
Basic 110,279,889 110,279,889
Diluted 111,228,304 111,228,304
Net income/(loss) per ADS
Basic 1.587 0.208
Diluted 1.574 0.207
Weighted average number of ADS outstanding:
Basic 36,759,963 36,759,963
Diluted 37,076,101 37,076,101
Each ADS represents 3 ordinary shares
Three months ended
-------------------------
June 30, 2007
RMB USD
-------------------------
Revenue from sale of goods
Revenue from third parties 429,872,021 56,472,940
Revenue from related parties 909,229 119,447
Revenue from processing service 26,202,654 3,442,282
----------- -----------
Total revenues 456,983,904 60,034,669
Cost of revenue from sale of goods (340,498,142) (44,731,758)
Cost of revenue from processing service (6,360,581) (835,599)
----------- -----------
Total cost of revenues (346,858,723) (45,567,357)
----------- -----------
Gross profit 110,125,181 14,467,312
Selling, general and administrative
expenses (24,447,478) (3,211,702)
Research and development expenses (709,269) (93,178)
----------- -----------
Total operating expenses (25,156,747) (3,304,880)
----------- -----------
Income/ (loss) from operations 84,968,434 11,162,432
----------- -----------
Interest expense (961,102) (126,261)
Interest income 19,901,549 2,614,497
Other income 2,068,353 271,723
Foreign exchange gain/ (loss) (30,310,479) (3,981,934)
----------- -----------
Income/ (loss) before income taxes 75,666,755 9,940,457
Income tax benefit/ (expense) -- --
Net income/ (loss) 75,666,755 9,940,457
----------- -----------
Preferred shares accretion -- --
Allocation of income to participating
preferred share holders -- --
----------- -----------
Net income available to ordinary
shareholders 75,666,755 9,940,457
=========== ===========
Net income/(loss) per ordinary shares
Basic 0.547 0.07
Diluted 0.542 0.07
Weighted average number of ordinary
shares outstanding:
Basic 138,270,000 138,270,000
Diluted 139,496,802 139,496,802
Net income/(loss) per ADS
Basic 1.642 0.216
Diluted 1.627 0.214
Weighted average number of ADS outstanding:
Basic 46,090,000 46,090,000
Diluted 46,498,934 46,498,934
Each ADS represents 3 ordinary shares
JA Solar Holdings Co., Ltd.
Condensed Consolidated Balance Sheets
Dec. 31, 2006 June 30, 2007
Audited Unaudited
RMB USD RMB USD
-----------------------------------------------------
ASSETS
Current assets
Cash and
cash
equivalents 95,758,377 12,579,923 1,565,942,627 205,720,261
Accounts
receivables
from
third
party
customers 47,719,752 6,269,016 140,472,179 18,454,043
Inventories 154,675,325 20,319,932 161,161,177 21,171,989
Value-added
tax
recoverable -- -- 14,211,262 1,866,955
Advances to
related
party
suppliers 39,831,642 5,232,743 16,705,242 2,194,593
Advances to
third party
suppliers 1,608,765 211,346 118,021,933 15,504,721
Other
current
assets 6,673,976 876,770 20,393,695 2,679,151
----------- ---------- ------------- -----------
Total
current
assets 346,267,837 45,489,732 2,036,908,115 267,591,712
----------- ---------- ------------- -----------
Property
and
equipment,
net 139,399,605 18,313,138 274,511,150 36,062,947
Intangible
asset,
net 7,224,713 949,122 6,651,433 873,809
Other long
term
assets-
advance to
third party
suppliers -- -- 225,469,000 29,620,205
----------- ---------- ------------- -----------
Total assets 492,892,155 64,751,991 2,543,539,698 334,148,673
=========== ========== ============= ===========
LIABILITIES
AND
SHAREHOLDERS'
EQUITY
Current
liabilities:
Tax payables 3,639,665 478,148 -- --
Advances
from third
parties
customers 21,329,609 2,802,103 26,830,394 3,524,750
Short-term
bank
borrowings 150,000,000 19,705,728 150,000,000 19,705,728
Accounts
payable to
third
parties 2,501,790 328,664 41,529,563 5,455,802
Other
payables
to third
parties 2,769,566 363,842 11,838,896 1,555,294
Payroll
and welfare
payable 2,676,854 351,662 3,570,656 469,083
Accrued
expenses 3,932,709 516,646 3,533,395 464,187
Accounts
payable to
related
parties 70,868 9,310 349,411 45,903
Other
payable to
related
parties 183,555 24,114 223,199 29,322
----------- ---------- ------------- -----------
Total
current
liabilities 187,104,616 24,580,218 237,875,514 31,250,068
----------- ---------- ------------- -----------
Total
liabilities 187,104,616 24,580,218 237,875,514 31,250,068
----------- ---------- ------------- -----------
Shareholders'
equity:
Preferred shares
(US$0.0001
par value;
6,520,000
and 0 shares
outstanding
as of December 31,
2006 and
June 30,
2007) 110,037,714 14,455,822 -- --
Ordinary shares
(US$0.0001
par value;
493,480,000
shares
authorized,
80,000,000
and
138,270,000
shares
issued and
outstanding
as of
December 31,
2006 and
June 30,
2007) 66,212 8,698 111,453 14,642
Additional
paid-in
capital 106,715,707 14,019,404 2,080,926,774 273,374,511
Statutory
reserve 14,587,748 1,916,415 14,587,748 1,916,415
Retained
earnings 74,380,158 9,771,434 210,038,209 27,593,038
----------- ---------- ------------- -----------
Total
shareholders'
equity 195,749,825 25,715,952 2,305,664,184 302,898,605
----------- ---------- ------------- -----------
Total
liabilities
and
shareholders'
equity 492,892,155 64,751,991 2,543,539,698 334,148,673
=========== ========== ============= ===========