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JA Solar Announces Third Quarter 2011 Results

SHANGHAI, China, Nov 22, 2011 (GlobeNewswire via COMTEX) --

JA Solar Holdings Co., Ltd. (Nasdaq:JASO) ("JA Solar" or the "Company"), one of the world's largest manufacturers of high-performance solar cells and solar power products, today announced its financial results for its third quarter ended September 30, 2011.

Third Quarter 2011 Highlights

  --  Third quarter shipments of 445 MW, an increase of 6.5% year-over-year
      and an increase of 11.0% sequentially

  --  Third quarter revenue of $388.0 million, a decrease of 31.6%
      year-over-year and a decrease of 7.3% sequentially

  --  Strong balance sheet with a cash balance of $506.5 million and working
      capital of $734.9 million


Dr. Peng Fang, CEO of JA Solar, commented, "This continues to be a challenging period for the solar industry, but we are heartened that JA Solar has been able to retain customers and maintain strong market share in the third quarter. While ongoing macro-economic and industry volatility continued to restrain demand, overall product shipments were at the low end of our guidance at 445MW. With the European debt crisis limiting the amount of financing available for solar power projects, we did not see the anticipated demand recovery in major European markets during the month of September. However, JA Solar performed relatively well as customers increasingly relied on top tier suppliers with strong liquidity. In the current market environment, where customers have more choices of products and suppliers, we have seen customers shifting more of their orders to suppliers who can deliver high power products together with a strong brand, a reputation for quality, and a healthy balance sheet. JA Solar's suite of industry-leading high-performance products gives us a clear advantage and this is particularly evident in our module shipments for the third quarter, which grew by more than 45% sequentially. Our gross margin for the quarter has been impacted by an inventory provision of US$21.7 million. Excluding this inventory provision, gross margin would have been positive."

Dr. Fang continued, "As a result of on-going macro-economic and industry uncertainty, visibility in the near term is limited. We remain confident that we can outperform our peers by building on our already strong relationships with our diverse global customer base, and maintaining our long-term partnerships with leading solar companies internationally. JA Solar is also committed to ensuring operational efficiency by continuing our cost optimization efforts, reducing inventory, and producing to order. We believe that these efforts, supported by our healthy cash position and balance sheet strength, will ensure that JA Solar is well positioned to benefit when market conditions improve."

Third quarter 2011 Financial Results

Total shipments in the third quarter of 2011 were 445 MW, compared with shipments of 401 MW in the second quarter of 2011, representing a sequential increase of 11.0%. Compared with the same period last year, shipments grew 6.5% from 418 MW.

Revenue in the third quarter of 2011 was RMB 2.5 billion ($388.0 million), a decrease of 7.3% compared to RMB 2.7 billion ($418.5 million) in the second quarter of 2011 and a decrease of 31.6% from RMB 3.6 billion ($567.4 million) reported in the third quarter of 2010.

Gross loss in the third quarter of 2011 was RMB 106.1 million ($16.6 million), compared with gross loss of RMB 72.0 million ($11.3 million) in the second quarter of 2011 and gross profit of RMB 816.0 million ($127.9 million) in the third quarter of 2010. Gross margin was negative 4.3% in the third quarter of 2011, compared with negative 2.7% in the second quarter of 2011 and 22.5% in the third quarter of 2010. Included in the cost of sales was an inventory provision of RMB 138.6 million ($21.7 million) recorded in the third quarter. The provision was recorded to write down inventory costs in order to reflect a decline in the average selling price. The provision had a negative impact on gross margin of 5.6%. Excluding the impact of the inventory provision, gross margin would have been positive.

Total operating expenses in the third quarter of 2011 were RMB 170.2 million ($26.7 million), compared with RMB 130.0 million ($20.4 million) in the second quarter of 2011 and RMB 146.7 million ($23.0 million) in the third quarter of 2010. Included in operating expenses was a non-cash provision for advance to third party suppliers of RMB 42.2 million ($6.6 million). Total operating expenses represented 6.9% of net revenue in the third quarter of 2011, compared with 4.9% in the second quarter of 2011 and 4.1% in the third quarter of 2010.

Operating loss in the third quarter of 2011 was RMB 276.3 million ($43.3 million), compared with operating loss of RMB 202.0 million ($31.7 million) in the second quarter of 2011 and operating income of RMB 669.3 million ($104.9 million) in the third quarter of 2010.

Loss per diluted ADS in the third quarter of 2011 was RMB 2.28 ($0.36), compared with loss per diluted ADS of RMB 1.39 ($0.22) in the second quarter of 2011 and earnings per diluted ADS of RMB 3.14 ($0.49) in the third quarter of 2010.

Liquidity

The Company maintained a strong balance sheet with cash and cash equivalents of RMB 3.2 billion ($506.5 million), and total working capital of RMB 4.7 billion ($734.9 million) at September 30, 2011. Total long term and short term borrowings were RMB 4.5 billion ($703.9 million) and the face value of outstanding convertible bonds due 2013 was RMB 1.5 billion ($228.2 million) at September 30, 2011.

Outlook

Solar cell and module shipments in the fourth quarter are expected to be in the range of approximately 310 MW to 330 MW. The Company currently estimates that total cell and module shipments for full year 2011 will be approximately 1.6 GW. This compares to the Company's previous guidance of 1.8 GW.

Investor Conference Call / Webcast Details

A conference call has been scheduled for today, November 22, 2011, at 8:00a.m. US Eastern Time.

Dial-in details for the live conference call are as follows:

  U.S./International: +1-718-354-1231
  Hong Kong: +852-2475-0994

  Passcode: 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 three hours after the live call.

The dial-in details for the replay are as follows:

  International: + 61-2-8235-5000
  United States: +1-718-354-1232

  Passcode: 25400164

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, 2011, which was RMB 6.378 to USD $1. 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 September 30, 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
                                    Sep. 30, 2010  Jun. 30, 2011  Sep. 30, 2011  Sep. 30, 2011
                                          RMB'000        RMB'000        RMB'000        USD'000

  Net revenues                          3,618,796      2,669,111      2,474,655        387,999

  Cost of sales                       (2,802,820)    (2,741,141)    (2,580,739)      (404,631)
                                    -------------  -------------  -------------  -------------

  Gross profit/(loss)                     815,976       (72,030)      (106,084)       (16,632)
                                    -------------  -------------  -------------  -------------
  Selling, general and
   administrative expenses              (123,573)      (114,083)      (152,618)       (23,929)
  Research and development
   expenses                              (23,082)       (15,875)       (17,587)        (2,758)
                                    -------------  -------------  -------------  -------------

  Total operating expenses              (146,655)      (129,958)      (170,205)       (26,687)
                                    -------------  -------------  -------------  -------------

  Income/(loss) from operations           669,321      (201,988)      (276,289)       (43,319)
                                    -------------  -------------  -------------  -------------
  Interest expense                       (56,326)       (77,225)      (115,550)       (18,117)

  Other (loss)/income                    (17,127)         29,648       (13,000)        (2,038)
                                    -------------  -------------  -------------  -------------
  Income/(loss) before income
   taxes                                  595,868      (249,565)      (404,839)       (63,474)
                                    -------------  -------------  -------------  -------------

  Income tax (expenses)/benefit          (85,528)         20,675         28,853          4,524
                                    -------------  -------------  -------------  -------------
  Net income/(loss) from
   continuing operations                  510,340      (228,890)      (375,986)       (58,950)
                                    -------------  -------------  -------------  -------------
  Net income from discontinued
   operations                               3,344              0              0              0
                                    -------------  -------------  -------------  -------------

  Net income/(loss)                       513,684      (228,890)      (375,986)       (58,950)
                                    -------------  -------------  -------------  -------------

  Net income/(loss) per share:
   Basic                                     3.15         (1.39)         (2.28)         (0.36)
   Diluted                                   3.14         (1.39)         (2.28)         (0.36)

  Weighted average number of
   shares outstanding:
   Basic                              163,065,242    164,453,244    164,655,374    164,655,374
   Diluted                            163,668,148    164,453,244    164,655,374    164,655,374



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

                                          For nine months ended
                               Sep. 30, 2010  Sep. 30, 2011  Sep. 30, 2011
                                     RMB'000        RMB'000        USD'000

  Net revenues                     7,904,590      8,787,130      1,377,725

  Cost of sales                  (6,098,617)    (8,334,905)    (1,306,821)
                               -------------  -------------  -------------

  Gross profit                     1,805,973        452,225         70,904
                               -------------  -------------  -------------
  Selling, general and
   administrative expenses         (369,238)      (339,748)       (53,269)
  Research and development
   expenses                         (49,922)       (45,398)        (7,118)
                               -------------  -------------  -------------

  Total operating expenses         (419,160)      (385,146)       (60,387)
                               -------------  -------------  -------------

  Income from operations           1,386,813         67,079         10,517
                               -------------  -------------  -------------
  Interest expense                 (156,280)      (256,219)       (40,172)

  Other (loss)/income               (83,690)         71,035         11,137
                               -------------  -------------  -------------
  Income/(loss) before income
   taxes                           1,146,843      (118,105)       (18,518)
                               -------------  -------------  -------------

  Income tax expenses              (174,607)       (24,344)        (3,817)
                               -------------  -------------  -------------
  Net income/(loss) from
   continuing operations             972,236      (142,449)       (22,335)
                               -------------  -------------  -------------
  Net (loss)/income from
   discontinued operations             (223)          7,753          1,216
                               -------------  -------------  -------------

  Net income/(loss)                  972,013      (134,696)       (21,119)
                               -------------  -------------  -------------

  Net income/(loss) per
   share:
   Basic                                5.97         (0.82)         (0.13)
   Diluted                              5.95         (0.82)         (0.13)

  Weighted average number of
   shares outstanding:
   Basic                         162,738,224    164,263,075    164,263,075
   Diluted                       163,231,068    164,263,075    164,263,075



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

                               Dec. 31,           Sep. 30,
                                 2010         2011         2011
                                RMB'000      RMB'000     USD'000

  ASSETS
  Current assets:
  Cash and cash equivalents     2,289,482    3,230,651     506,530
  Restricted cash                 112,593       78,743      12,346
  Accounts receivable             945,633    1,521,670     238,581
  Inventories                   1,349,329    1,215,579     190,589
  Advances to suppliers           605,630      350,360      54,933

  Other current assets          1,115,561    1,031,523     161,732
                              -----------  -----------  ----------

  Total current assets          6,418,228    7,428,526   1,164,711
                              -----------  -----------  ----------
  Property and equipment,
   net                          3,170,721    4,772,434     748,265
  Advances to suppliers         1,653,177    1,861,024     291,788
  Long-term investment                 --       96,182      15,080
  Deferred issuance cost          110,868       80,130      12,563

  Other long term assets          266,388      294,707      46,207
                              -----------  -----------  ----------

  Total assets                 11,619,382   14,533,003   2,278,614
                              ===========  ===========  ==========
  LIABILITIES AND
   SHAREHOLDERS' EQUITY
  Current liabilities:
  Short-term bank borrowings           --      359,770      56,408
  Accounts payable              1,036,416    1,233,025     193,325
  Advances from customers         484,458      329,609      51,679
  Long term liabilities due
   in one year                         --      325,000      50,956
  Accrued and other
   liabilities                    522,769      493,860      77,432
                              -----------  -----------  ----------

  Total current liabilities     2,043,643    2,741,264     429,800
                              -----------  -----------  ----------
  Convertible Bond              1,230,175    1,256,530     197,010
  Long-term borrowings          1,520,000    3,804,720     596,538
  Other long term
   liabilities                    145,409      106,602      16,714
                              -----------  -----------  ----------

  Total liabilities             4,939,227    7,909,116   1,240,062
                              -----------  -----------  ----------
  Commitment and
   Contingencies

  Shareholders' equity          6,680,155    6,623,887   1,038,552
                              -----------  -----------  ----------
  Total liabilities and
   shareholders' equity        11,619,382   14,533,003   2,278,614
                              ===========  ===========  ==========

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