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JA Solar Announces First Quarter 2011 Results

SHANGHAI, China, May 10, 2011 (GlobeNewswire via COMTEX) --

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 first quarter ended March 31, 2011.

First Quarter 2011 Highlights

  --  First quarter shipments of 451MW, an increase of 65.8% year-over-year
      and a decrease of 2.6% sequentially
  --  First quarter revenue of $556 million, an increase of 91.2%
      year-over-year and a decrease of 5.5% sequentially
  --  Gross margin of 17.3%, down from 19.2% in the fourth quarter of 2010
  --  Operating income of $83.3 million and operating margin of 15.0%
  --  First quarter net income of $71.8 million and GAAP diluted EPS of $0.41
  --  Strong balance sheet with cash balance of $422.2 million and working
      capital of $711.8 million


"Despite the seasonally weaker first quarter and uncertainties surrounding Italy's solar policies, our first quarter performance illustrates that our strategic partners continue to recognize our clear market leadership on costs and technology," said Dr. Peng Fang, CEO of JA Solar. "Shipments in the first quarter were slightly below our previously announced estimates, primarily due to factory shutdowns during the week-long Chinese New Year holiday which had a stronger impact than anticipated on solar cell production output and shipping schedules. However, overall shipments for the quarter remained more or less in line with production volume. This sustained demand for our products highlights the success of our strategy of developing long-term strategic partnerships with the leading solar players across the global solar markets. Underpinning this is our unique position as the industry's low cost leader, and we are confident that in the future we can achieve even greater production efficiencies and drive costs down further."

Dr. Fang added: "For the quarter and year ahead we remain focused on building new and productive partnerships that enable us to expand our market presence in key geographies. In particular, we are excited about the high growth potential of the US market and have already secured a number of promising US-focused partnerships, such as our solar cell joint venture with MEMC. These partnerships give us valuable exposure to the utility scale project market and enable us to rapidly grow our US footprint. We are similarly well positioned in China, where our status as one of the largest and most-respected players in the industry will enable us to take advantage of opportunities as the market expands."

First Quarter 2011 Financial Results

Total shipments in the first quarter of 2011 were 451MW, compared with shipments of 463MW in the fourth quarter of 2010, representing a sequential decrease of 2.6%. Compared with the same period last year, shipments grew 65.8% from 272MW.

Revenue in the first quarter of 2011 was RMB 3.6 billion ($556.4 million), a decrease of 5.5% compared to RMB 3.9 billion ($588.9 million) reported in the fourth quarter of 2010 and an increase of 91.2% from RMB 1.9 billion ($290.9 million) reported in the first quarter of 2010.

Gross profit in the first quarter of 2011 was RMB 630.3 million ($96.3 million), compared with RMB 740.4 million ($113.1 million) in the fourth quarter of 2010 and RMB 438.8 million ($67.0 million) in the first quarter of 2010. Gross margin was 17.3% in the first quarter of 2011, compared with 19.2% in the fourth quarter of 2010 and 23.0% in the first quarter of 2010.

Total operating expenses in the first quarter of 2011 were RMB 85.0 million ($13.0 million), compared with RMB 149.8 million ($22.9 million) in the fourth quarter of 2010 and RMB 84.2 million ($12.9 million) in the first quarter of 2010. Total operating expenses represented 2.3% of net revenue in the first quarter of 2011, compared with 3.9% in the fourth quarter of 2010 and 4.4% in the first quarter of 2010. Included in the operating expenses for the first quarter of 2011 was a reversal of provision for prepayments of RMB 28.2 million ($4.3 million). Excluding this transaction, total operating expenses for the first quarter would be RMB 113.2 million ($17.3 million) or 3.1% of net revenue.

Operating income in the first quarter of 2011 was RMB 545.4 million ($83.3 million), compared with RMB 590.7 million ($90.2 million) in the fourth quarter of 2010 and RMB 354.5 million ($54.1 million) in the first quarter of 2010. Operating margin was 15.0% in the first quarter of 2011, compared with 15.3% in the fourth quarter of 2010 and 18.6% in the first quarter of 2010.

Earnings per diluted ADS in the first quarter of 2011 were RMB 2.68 ($0.41), a decrease of 31.3% compared with RMB 3.90 ($0.60) in the fourth quarter of 2010. Fourth quarter 2010 earnings included a gain of RMB 231.2 million ($34.6 million) from proceeds from sales of Lehman Notes. This resulted in a gain per diluted ADS of RMB 1.34 ($0.20). Excluding this transaction, earnings per ADS for the fourth quarter 2010 were RMB 2.56 ($0.40). Year-over-year, earnings per diluted ADS grew by 66.5%, compared with RMB 1.61 ($0.25) in the first quarter of 2010.

Included in other income was a non-cash gain on change in fair value of derivatives of RMB35.7 million ($5.5 million). This gain resulting from the change in fair value of derivatives has been excluded from the calculation of diluted earnings per ADS.

In the first quarter of 2011, the Company generated operating cash flow of RMB 420.2 million ($64.2 million), or RMB 2.44 ($0.37) per diluted ADS.

Liquidity

The Company maintained a strong balance sheet with cash and cash equivalents of RMB 2.8 billion ($422.2 million), and total working capital of RMB 4.7 billion ($711.8 million) at March 31, 2011. Total long term bank borrowings were RMB 2.1 billion ($321.5 million) and the face value of outstanding convertible bonds due 2013 was RMB 1.5 billion ($228.2 million) at March 31, 2011.

Outlook

Due to changes in the market environment as result of the recent solar policy changes in Italy, solar cell and module shipments in the second quarter are expected to exceed 400MW. The Company's current estimate for total cell and module shipments for full year 2011 remains unchanged at 2.2GW.

Investor Conference Call / Webcast Details

A conference call has been scheduled for today, Tuesday, May 10, 2011, at 8:00 a.m. US Eastern Time. The call may be accessed by dialing +1-866-783-2139 (U.S.) or +1-857-350-1598 (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 three 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 82710036.

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 March 31, 2011, which was RMB 6.5483 to USD $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 March 31, 2011, 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
                               Mar. 31,     Dec. 31,     Mar. 31,     Mar. 31,
                                 2010         2010         2011         2011
                                RMB'000      RMB'000      RMB'000      USD'000

  Net revenues                  1,905,093    3,856,189    3,643,363      556,383

  Cost of sales               (1,466,332)  (3,115,776)  (3,013,024)    (460,123)
                              -----------  -----------  -----------  -----------

  Gross profit                    438,761      740,413      630,339       96,260
                              -----------  -----------  -----------  -----------
  Selling, general and
   administrative expenses       (76,430)    (135,863)     (73,046)     (11,155)
  Research and development
   expenses                       (7,817)     (13,894)     (11,936)      (1,823)
                              -----------  -----------  -----------  -----------

  Total operating expenses       (84,247)    (149,757)     (84,982)     (12,978)
                              -----------  -----------  -----------  -----------

  Income from operations          354,514      590,656      545,357       83,282
                              -----------  -----------  -----------  -----------
  Interest expense               (49,049)     (64,928)     (63,444)      (9,689)

  Other (loss)/income               (509)      355,317       54,386        8,306
                              -----------  -----------  -----------  -----------

  Income before income taxes      304,956      881,045      536,299       81,899
                              -----------  -----------  -----------  -----------

  Income tax expenses            (43,210)     (78,100)     (73,872)     (11,281)
                              -----------  -----------  -----------  -----------
  Net income from continuing
   operations                     261,746      802,945      462,427       70,618
                              -----------  -----------  -----------  -----------
  Net gain/(loss) from
   discontinued operations            362     (19,607)        7,753        1,184
                              -----------  -----------  -----------  -----------

  Net income                      262,108      783,338      470,180       71,802
                              -----------  -----------  -----------  -----------

  Net income per share:
   Basic                             1.61         4.79         2.87         0.44
   Diluted                           1.61         3.90         2.68         0.41

  Weighted average number of
   shares outstanding:
   Basic                      162,473,396  163,382,659  163,669,777  163,669,777
   Diluted                    162,878,172  172,306,566  172,190,352  172,190,352



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

                               Dec. 31,           Mar. 31,
                                 2010         2011         2011
                                RMB'000      RMB'000     USD'000

  ASSETS
  Current assets:
  Cash and cash equivalents     2,289,482    2,764,422     422,159
  Restricted cash                 112,593       50,761       7,752
  Accounts receivable             945,633    1,165,442     177,976
  Inventories                   1,349,329    1,241,593     189,605
  Advances to suppliers           605,630      677,555     103,470

  Other current assets          1,115,561      842,974     128,732
                              -----------  -----------  ----------

  Total current assets          6,418,228    6,742,747   1,029,694
                              -----------  -----------  ----------
  Property and equipment,
   net                          3,170,721    3,821,255     583,549
  Advances to suppliers         1,653,177    1,741,465     265,942
  Derivative asset                 14,591        9,970       1,522
  Deferred issuance cost          110,868      101,401      15,485

  Other long term assets          251,797      299,424      45,726
                              -----------  -----------  ----------

  Total assets                 11,619,382   12,716,262   1,941,918
                              ===========  ===========  ==========
  LIABILITIES AND
   SHAREHOLDERS' EQUITY
  Current liabilities:
  Accounts payable              1,036,416    1,014,808     154,973
  Advances from customers         484,458      523,336      79,919
  Accrued and other
   liabilities                    522,769      543,686      83,027
                              -----------  -----------  ----------

  Total current liabilities     2,043,643    2,081,830     317,919
                              -----------  -----------  ----------
  Convertible Bond              1,230,175    1,243,147     189,843
  Embedded derivatives             66,174       25,806       3,941
  Long-term bank borrowings     1,520,000    2,105,000     321,457
  Other long term
   liabilities                     79,235       90,413      13,807
                              -----------  -----------  ----------

  Total liabilities             4,939,227    5,546,196     846,967
                              -----------  -----------  ----------
  Commitment and
   Contingencies

  Shareholders' equity          6,680,155    7,170,066   1,094,951
                              -----------  -----------  ----------
  Total liabilities and
   shareholders' equity        11,619,382   12,716,262   1,941,918
                              ===========  ===========  ==========

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: JA Solar Holdings Co., Ltd.

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