North Coast Solar Stocks

November 10, 2009

JA Solar Announces Third Quarter 2009 Results

Filed under: JASO — Tags: , , , , , — Jason @ 7:05 am

* Record Q3 2009 shipments of 177MW, 130 percent growth over Q2 2009
* Revenue of $193 million, 120 percent growth over Q2 2009
* Gross margin of 16.7 percent, up from 11.4 percent in Q2 2009
* Operating income of $22 million and EPS of $0.10
* Positive operating cash flow of $42 million
* Strong liquidity with $256 million in cash and working capital of over $483 million
* Expects Q4 shipments to be in the range of 170MW to 200MW

7:05 am EST, Tuesday November 10, 2009

SHANGHAI, Nov. 10 /PRNewswire-FirstCall/ — JA Solar Holdings Co., Ltd. (JASO), a leading manufacturer of high-performance solar products, today announced financial results for its third quarter ended Sept. 30, 2009.

Third Quarter 2009 Results

Revenue in the third quarter of 2009 was RMB 1.3 billion ($193.3 million), an increase of 119.6 percent from RMB 600.7 million ($88.0 million) reported in the second quarter of 2009 and a decrease of 37.8 percent from RMB 2.1 billion ($310.7 million) reported in the third quarter of 2008. Total shipments in the third quarter were a record 177MW, compared with the second quarter shipments of 77MW, representing a sequential growth of 129.9 percent. Compared with the same period last year, shipment growth was 78.8 percent, up from 99 MW in the third quarter of 2008.

“We are pleased to report the highest quarterly shipments in our company’s history, with increasing demand for our products worldwide,” said Baofang Jin, JA Solar’s chairman and CEO. “Our Q3 results demonstrate many advantages that JA Solar has, including scale, technological leadership, a strong brand, high quality products and a low cost structure, making JA Solar the preferred supplier to many customers,” he said.

“We also gained significant market share during the quarter and made further progress diversifying our customer base. JASO is the top choice for companies that are purchasing multiple-megawatts of products in a short time, with requirements for high conversion efficiency at a competitive price,” he said.

Total gross profit in the third quarter of 2009 was RMB 220.5 million ($32.3 million), or 16.7 percent, compared with RMB 68.3 million ($10.0 million) or 11.4 percent in the second quarter of 2009 and RMB 458.1 million ($67.1 million) or 21.6 percent in the third quarter of 2008.

Total operating expenses in the third quarter of 2009 were RMB 72.3 million ($10.6 million), compared with RMB 177.4 million ($26.0 million) in the second quarter of 2009 and RMB 24.8 million ($3.6 million) in the third quarter of 2008.

Included in the third quarter of 2009 operating expenses was a non-cash stock-based compensation charge of RMB 11.7 million ($1.7 million), compared with RMB 81.1 million ($11.9 million) in the second quarter of 2009 and a non-cash gain of RMB 17.2 million ($2.5 million) in the third quarter of 2008.

Operating income in the third quarter of 2009 was RMB 148.2 million ($21.7 million), compared with an operating loss of RMB 109.0 million (a loss of $16.0 million) in the second quarter of 2009 and operating income of RMB 433.3 million ($63.5 million) in the third quarter of 2008. Excluding the stock-based compensation charge, the company generated an operating income of RMB 159.9 million ($23.4 million) for the third quarter of 2009.

Earnings per diluted ADS in the third quarter of 2009 were RMB 0.66 ($0.10), compared with net loss per diluted ADS of RMB 1.21 (a loss of $0.18) in the second quarter of 2009 and net loss per diluted ADS of RMB 2.47 (a loss of $0.36) in the third quarter of 2008.

Operating cash flow for the third quarter of 2009 was a positive cash flow of RMB 288.6 million ($42.3 million), compared with RMB 194.7 million ($28.5 million) in the second quarter of 2009 and a negative cash flow of RMB 458.1 million ($67.1 million) in the third quarter of 2008.

At Sept. 30, 2009, JA Solar had cash and cash equivalents of RMB 1.7 billion ($256.1 million), compared with RMB 2.2 billion ($329.0 million) at June 30, 2009. The convertible bonds outstanding at Sept. 30, 2009 were RMB 1.7 billion ($253.5 million) and total long-term bank loans outstanding at Sept. 30, 2009 were RMB 680.0 million ($99.6 million). Total working capital at Sept. 30, 2009 was RMB 3.3 billion ($483.5 million).

Fourth Quarter and Full Year 2009 Guidance

“As demand for solar products has improved significantly across multiple geographies, we are seeing robust demand from our customers with improved visibility,” said Mr. Jin.

Based on current customer orders, the company expects the fourth quarter of 2009 shipments to be in the range of 170MW to 200MW, and full year 2009 shipments to be in the range of 448MW to 478MW. The nameplate production capacity by year-end 2009 is expected to be 800 MW.

Management Change

Dr. Qingtang Jiang has resigned from his position as Chief Technology Officer to pursue other interests, effective Nov. 13, 2009. The company has identified qualified candidates for the position of CTO and will announce the new CTO when the appointment is made. “We would like to thank Dr. Jiang for his service and contribution to JA Solar and wish him success in his future endeavors,” said Mr. Jin.

Investor Conference Call / Webcast Details

A conference call has been scheduled for today, Tuesday, Nov. 10, 2009 at 8:00 am Eastern time. The call may be accessed by dialing 1.800.299.0433 (U.S.) or 1.617.801.9712 (international). The passcode is JA Solar. A live webcast of the conference call will be available on the company’s website at http://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 98389633.

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 Sept. 30, 2009, which was RMB 6.8262 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, 2009, or at any other date. The percentages stated in this press release are calculated based on Renminbi.

                            JA Solar Holdings Co., Ltd.
                  Condensed Consolidated Statements of Operations
                                    (Unaudited)

                                          For three months ended
                            Sept. 30,      Jun. 30,     Sept. 30,    Sept. 30,
                              2008          2009          2009         2009
                             RMB'000       RMB'000       RMB'000      USD'000
    Net revenues           2,120,568       600,729     1,319,238      193,261
    Cost of sales         (1,662,506)     (532,402)   (1,098,713)    (160,955)
                          ----------      --------    ----------     --------
    Gross profit             458,062        68,327       220,525       32,306
                             -------        ------       -------       ------
    Selling, general
     and administrative
     expenses                (17,858)     (163,949)      (60,574)      (8,874)
    Research and
     development
     expenses                 (6,914)      (13,425)      (11,712)      (1,716)
                              ------       -------       -------       ------
    Total operating
     expenses                (24,772)     (177,374)      (72,286)     (10,590)
                             -------      --------       -------      -------
    Income/(loss) from
     operations              433,290      (109,047)      148,239       21,716
                             -------      --------       -------       ------
    Interest expense         (63,490)      (57,256)      (58,432)      (8,560)
    Change in fair
     value of
     derivatives             229,052       (52,760)       20,063        2,939
    Gain/(loss) on
     buyback of
     convertible bond              -        11,044          (212)         (31)
    Other income/
     (expenses)              (35,228)       13,879         8,172        1,198
    Impairment on
     available-for-
     sale securities        (686,320)            -             -            -
                            --------           ---           ---          ---
    Income/(loss)
     before income
     taxes                  (122,697)     (194,140)      117,830       17,262
                            --------      --------       -------       ------
    Income tax expenses      (20,056)         (605)      (11,002)      (1,612)
                             -------          ----       -------       ------
    Net income/(loss)       (142,753)     (194,745)      106,828       15,650
                            --------      --------       -------       ------
    Net income/(loss)
     per share:
      Basic                    (0.92)        (1.21)         0.66         0.10
      Diluted                  (2.47)        (1.21)         0.66         0.10

    Weighted average
     number of shares
     outstanding:
      Basic              155,832,515   161,419,260   161,428,882  161,428,882
      Diluted            169,896,784   161,419,260   170,517,891  170,517,891



                            JA Solar Holdings Co., Ltd.
                  Condensed Consolidated Statements of Operations
                                    (Unaudited)

                                                  For nine months ended
                                         Sept. 30,     Sept. 30,    Sept. 30,
                                            2008          2009         2009
                                           RMB'000       RMB'000      USD'000
    Net revenues                         4,479,278     2,151,651      315,205
    Cost of sales                       (3,496,909)   (2,005,539)    (293,800)
                                        ----------    ----------     --------
    Gross profit                           982,369       146,112       21,405
                                           -------       -------       ------
    Selling, general and
     administrative expenses              (154,051)     (263,988)     (38,673)
    Research and development expenses      (15,157)      (36,074)      (5,285)
                                           -------       -------       ------
    Total operating expenses              (169,208)     (300,062)     (43,958)
                                          --------      --------      -------
    Income/(loss) from operations          813,161      (153,950)     (22,553)
                                           -------      --------      -------
    Interest expense                       (96,931)     (173,844)     (25,467)
    Change in fair value of
     derivatives                           445,436           621           91
    Gain on buyback of convertible
     bond                                        -        24,649        3,611
    Other income/(expenses)               (110,812)       13,527        1,982
    Impairment on available-for-sale
     securities                           (686,320)            -            -
                                          --------           ---          ---
    Income/(loss) before income taxes      364,534      (288,997)     (42,336)
                                           -------      --------      -------
    Income tax benefit/(expenses)          (34,260)        7,811        1,144
                                           -------         -----        -----
    Net income/(loss)                      330,274      (281,186)     (41,192)
                                           -------      --------      -------
    Net income/(loss) per share:
      Basic                                   2.13         (1.74)       (0.26)
      Diluted                                (1.63)        (1.74)       (0.26)

    Weighted average number of shares
     outstanding:
      Basic                            154,812,869   161,422,502  161,422,502
      Diluted                          166,470,323   171,362,650  171,362,650



                           JA Solar Holdings Co., Ltd.
                      Condensed Consolidated Balance Sheets
                                   (Unaudited)

                                         December 31,        Sept. 30,
                                             2008        2009         2009
                                           RMB'000      RMB'000      USD'000
                                          (Audited)         (Unaudited)
    ASSETS
    Current assets:
    Cash and cash equivalents            1,542,784     1,748,141      256,093
    Restricted cash                         33,061        84,737       12,413
    Short term investment                  421,865             -            -
    Accounts receivable                    355,051       228,505       33,475
    Inventories                            591,989       685,211      100,380
    Advances to suppliers                  680,447       692,074      101,385
    Other current assets                   205,227       336,051       49,230
                                           -------       -------       ------
    Total current assets                 3,830,424     3,774,719      552,976
                                         ---------     ---------      -------
    Property and equipment, net          1,369,807     1,560,284      228,573
    Advances to suppliers                1,944,912     1,646,270      241,169
    Derivative asset                         4,485         6,408          939
    Deferred issuance cost                  58,953        41,862        6,133
    Other long term assets                  70,603        83,517       12,234
                                            ------        ------       ------
    Total assets                         7,279,184     7,113,060    1,042,024
                                         =========     =========    =========
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities:
    Short-term bank borrowings             490,000        10,000        1,465
    Accounts payable                       117,982       222,003       32,522
    Accrued and other liabilities          262,842       242,134       35,472
                                           -------       -------       ------
    Total current liabilities              870,824       474,137       69,459
                                           -------       -------       ------
    Convertible Bond                     1,532,600     1,277,081      187,085
    Embedded derivatives                   115,676        92,035       13,483
    Long-term bank borrowings                    -       680,000       99,616
    Other long term liabilities              5,185        22,150        3,245
                                             -----        ------        -----
    Total liabilities                    2,524,285     2,545,403      372,888
                                         ---------     ---------      -------
    Commitment and Contingencies
    Shareholders' equity                 4,754,899     4,567,657      669,136
                                         ---------     ---------      -------
    Total liabilities and shareholders'
     equity                              7,279,184     7,113,060    1,042,024
                                         =========     =========    =========
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