language
You are here: Home - Investors - News Releases - News Release
    News Release
Printer Friendly Version View printer-friendly version
<< Back
JA Solar Announces Second Quarter 2009 Financial Results

SHANGHAI, Aug. 12 /PRNewswire-FirstCall/ -- JA Solar Holdings Co., Ltd. (Nasdaq: JASO), a leading manufacturer of high-performance solar products, today announced financial results for its second quarter ended June 30, 2009.

    (Logo: http://www.newscom.com/cgi-bin/prnh/20090309/JASOLARLOGO)

    Second Quarter 2009 Results

Revenue in the second quarter of 2009 was RMB 600.7 million ($88.0 million), a decrease of 51.4 percent from RMB 1.2 billion ($181.1 million) in the second quarter of 2008 and an increase of 159.3 percent from RMB 231.7 million ($33.9 million) reported in the first quarter of 2009. Total gross profit in the second quarter was RMB 68.3 million ($10.0 million) or 11.4 percent, compared with RMB 288.4 million ($42.2 million) or 23.3 percent in the second quarter of 2008, and gross loss of RMB 142.7 million ($20.9 million) or 61.6 percent in the first quarter of 2009.

Total operating expenses in the second quarter of 2009 were RMB 177.4 million ($26.0 million), compared with RMB 72.1 million ($10.6 million) in the second quarter of 2008 and RMB 50.4 million ($7.4 million) in the first quarter of 2009. Included in operating expenses was a charge of RMB 81.1 million ($11.9 million) of non-cash stock-based compensation charge in the second quarter of 2009, compared with RMB 44.3 million ($6.5 million) in the second quarter of 2008 and RMB 11.9 million ($1.7 million) in the first quarter of 2009. Stock-based compensation charge in the second quarter of 2009 included a one-time charge of RMB 56.3 million ($8.2 million) related to surrender of stock options to the company by employees during the quarter. In the second quarter of 2009, the company also recorded a reserve for prepayment to suppliers and provision for accounts receivable of RMB 44.5 million ($6.5 million). Total operating expenses, excluding the stock-based compensation charge and the reserve for prepayment to suppliers and provision for accounts receivable, were RMB 51.9 ($7.6 million).

Operating loss in the second quarter of 2009 was RMB 109.0 million (a loss of $16.0 million), compared with operating income of RMB 216.3 million ($31.7 million) in the second quarter of 2008 and operating loss of RMB 193.1 million (a loss of $28.3 million) in the first quarter of 2009. Excluding stock-based compensation charge, provision for prepayments to suppliers and reserve for receivables, the company generated an operating income of RMB 16.5 million ($2.4 million) for the second quarter of 2009.

GAAP net loss per diluted ADS in the second quarter of 2009 was RMB 1.21 (a loss of $0.18), compared with net loss per diluted ADS of RMB 0.04 (a loss of $0.01) in the same period of 2008 and net loss per diluted ADS of RMB 1.20 (a loss of $0.18) in the first quarter of 2009.

At June 30, 2009, JA Solar had cash and cash equivalents of RMB 2.2 billion ($328.8 million), compared with RMB 1.3 billion ($192.9 million) at March 31, 2009. During the second quarter of 2009, the company used long-term loans with favorable interest rates obtained from Chinese banks to retire certain short-term loans. The company also repurchased RMB 128.1 million ($18.8 million) face value of convertible bonds at discount during the second quarter, and RMB 170.7 million ($25.0 million) face value subsequent to the quarter end. As a result of positive operating cash flow in the quarter and the effort to strengthen the balance sheet, the company's working capital balance at June 30, 2009 improved by 37.6 percent from RMB 2.6 billion ($385.4 million) at the end of the first quarter to RMB 3.6 billion ($530.5 million) at June 30, 2009. The convertible bonds outstanding at June 30, 2009 were RMB 2.0 billion ($296.5 million) and RMB 1.9 billion ($271.5 million) as of today. Total long-term bank loans outstanding at June 30, 2009 were RMB 920.0 million ($134.7 million).

"We are pleased with our second quarter results, which reflect our success in growing JA Solar's customer base and our market share," said Baofang Jin, JA Solar's chairman and CEO. "JA Solar continues to offer high quality products at a very competitive price, afforded by our industry-leading technology and cost structure. We are also pleased that because of our focus on operations and cost reductions, we were able to show gross margin improvement in the second quarter," he said.

"Looking ahead, we are seeing significant signs of market improvement in both end-market demand and financing. We believe our cost structure and customer relationships will drive even stronger third quarter results," he said.

Investor Conference Call / Webcast Details

A conference call has been scheduled for today, Wednesday, Aug. 12, 2009 at 8:00 am Eastern time. The call may be accessed by dialing 1.866.271.0675 (U.S.) or 1.617.213.8892 (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 35619617.

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 June 30, 2009, which was RMB 6.8302 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 June 30, 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 "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 Form F-20 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

                  Jun. 30, 2008  Mar. 31, 2009  Jun. 30, 2009  Jun. 30, 2009
                       RMB'000        RMB'000        RMB'000        USD'000

    Net revenues     1,236,677        231,684        600,729         87,952
    Cost of sales     (948,228)      (374,424)      (532,402)       (77,948)
                      --------       --------       --------        -------
    Gross profit       288,449       (142,740)        68,327         10,004
                       -------       --------         ------         ------
    Selling,
     general and
     administrative
      expenses         (66,588)       (39,466)      (163,949)       (24,003)
    Research and
     development
     expenses           (5,545)       (10,937)       (13,425)        (1,966)
                        ------        -------        -------         ------
    Total
     operating
     expenses          (72,133)       (50,403)      (177,374)       (25,969)
                       -------        -------       --------        -------
    Income/(loss)
     from
     operations        216,316       (193,143)      (109,047)       (15,965)
                       -------       --------       --------        -------
    Interest
     expense           (32,948)       (58,155)       (57,256)        (8,383)
    Change in fair
     value of
     derivatives       175,662         33,318        (52,760)        (7,725)
    Gain on
     buyback of
     convertible
     bond                    -         13,817         11,044          1,617
    Other income/
     (expenses)        (35,283)        (8,524)        13,879          2,032
    Income/(loss)
     before income
     taxes             323,747       (212,687)      (194,140)       (28,424)
                       -------       --------       --------        -------
    Income tax
     benefit/
     (expenses)         (5,187)        19,419           (605)           (89)
                        ------         ------           ----            ---
    Net income/
     (loss)            318,560       (193,268)      (194,745)       (28,513)
                       -------       --------       --------        -------
    Net income/(loss)
     per share:
      Basic               2.06          (1.20)         (1.21)         (0.18)
      Diluted            (0.04)         (1.20)         (1.21)         (0.18)

    Weighted average
     number of shares
     outstanding:
      Basic        154,519,808    161,419,260    161,419,260    161,419,260
      Diluted      163,688,037    161,419,260    161,419,260    161,419,260



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

                                         For six months ended
                               Jun. 30, 2008  Jun. 30, 2009  Jun. 30, 2009
                                    RMB'000        RMB'000       USD'000

    Net revenues                  2,358,710        832,413       121,872
    Cost of sales                (1,834,403)      (906,826)     (132,767)
                                 ----------       --------      --------
    Gross profit                    524,307        (74,413)      (10,895)
                                    -------        -------       -------
    Selling, general and
     administrative expenses       (136,193)      (203,415)      (29,782)
    Research and development
     expenses                        (8,242)       (24,362)       (3,567)
                                     ------        -------        ------
    Total operating expenses       (144,435)      (227,777)      (33,349)
                                   --------       --------       -------
    Income/(loss) from
     operations                     379,872       (302,190)      (44,244)
                                    -------       --------       -------
    Interest expense                (33,441)      (115,411)      (16,897)
    Change in fair value of
     derivatives                    216,384        (19,442)       (2,846)
    Gain on buyback of
     convertible bond                     -         24,861         3,640
    Other income/(expenses)         (75,584)         5,355           785
    Income/(loss) before
     income taxes                   487,231       (406,827)      (59,562)
                                    -------       --------       -------
    Income tax benefit/
     (expenses)                     (14,203)        18,814         2,755
                                    -------         ------         -----
    Net income/(loss)               473,028       (388,013)      (56,807)
                                    -------       --------       -------
    Net income/(loss) per share:
      Basic                            3.07          (2.40)        (0.35)
      Diluted                          0.92          (2.40)        (0.35)

    Weighted average number of
     shares outstanding:
      Basic                     154,291,717    161,419,260   161,419,260
      Diluted                   159,733,545    161,419,260   161,419,260




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

                                              December 31,     June 30,
                                                  2008      2009      2009
                                                RMB'000   RMB'000   USD'000

    ASSETS
    Current assets:
    Cash and cash equivalents                 1,542,784 2,245,571   328,771
    Restricted cash                              33,061    41,517     6,078
    Short term investment                       421,865         -         -
    Accounts receivable                         355,051   141,388    20,700
    Inventories                                 591,989   744,877   109,056
    Advances to suppliers                       680,447   690,884   101,151
    Other current assets                        205,227   223,186    32,678
                                                -------   -------    ------
    Total current assets                      3,830,424 4,087,423   598,434
                                              --------- ---------   -------
    Property and equipment, net               1,369,807 1,443,364   211,321
    Advances to suppliers                     1,944,912 1,778,886   260,444
    Derivative asset-Capped call options          4,485     2,242       328
    Deferred issuance cost                       58,953    50,898     7,452
    Other long term assets                       70,603    78,129    11,439
                                                 ------    ------    ------
    Total assets                              7,279,184 7,440,942 1,089,418
                                              ========= ========= =========
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities:
    Short-term bank borrowings                  490,000   130,000    19,033
    Accounts payable                            117,982   127,041    18,600
    Accrued and other liabilities               262,842   207,251    30,343
                                                -------   -------    ------
    Total current liabilities                   870,824   464,292    67,976
                                                -------   -------    ------
    Convertible Bond                          1,532,600 1,466,277   214,676
    Embedded derivatives                        115,676   123,534    18,087
    Long-term bank borrowings                         -   920,000   134,696
    Other long term liabilities                   5,185    22,219     3,252
                                                  -----    ------     -----
    Total liabilities                         2,524,285 2,996,322   438,687
                                              --------- ---------   -------
    Commitment and Contingencies
    Shareholders' equity                      4,754,899 4,444,620   650,731
                                              --------- ---------   -------
    Total liabilities and shareholders'
     equity                                   7,279,184 7,440,942 1,089,418
                                              ========= ========= =========





SOURCE  JA Solar Holdings Co., Ltd.

    -0-                           08/12/2009
    /CONTACT:  Deborah Stapleton, deb@stapleton.com, or Alexis Pascal
alexis@stapleton.com , both of Stapleton Communications, +1-650-470-0200, for
JA Solar Holdings Co., Ltd./
    /Photo:  http://www.newscom.com/cgi-bin/prnh/20090309/JASOLARLOGO
             AP Archive:  http://photoarchive.ap.org
             PRN Photo Desk, photodesk@prnewswire.com/
    /Web Site:  http://www.jasolar.com /
    (JASO)

CO:  JA Solar Holdings Co., Ltd.

ST:  China
IN:  CPR ECP SEM
SU:  CCA ERN ECO

PR
-- SF60497 --
2097 08/12/2009 07:05 EDT http://www.prnewswire.com