* Q4 revenue of RMB 979 million ($144 million); above revised guidance of RMB 843 million ($124 million)
* Annual shipments of 277 MW; above revised guidance of 250 to 260 MW
* 2008 revenue increased 103 percent over 2007
* Maintained strong balance sheet and liquidity with over $292 million in cash and investments
* Announced 175 MW strategic supply agreement with BP Solar
SHANGHAI, March 10 /PRNewswire-FirstCall/ -- JA Solar Holdings Co., Ltd., (Nasdaq: JASO) a leading manufacturer of high-performance solar products, today reported financial results for its fourth quarter and full-year 2008, ended Dec. 31, 2008.
Fourth Quarter 2008 Results
Revenue in the fourth quarter of 2008 was RMB 979.0 million ($143.5 million), a decrease of 6.9 percent from RMB 1.1 billion ($154.1 million) in the fourth quarter of 2007 and a decrease of 53.8 percent from RMB 2.1 billion ($310.8 million) in the third quarter of 2008.
On a GAAP basis, total gross profit in the fourth quarter was RMB 9.7 million ($1.4 million) or 1 percent, compared with RMB 222.7 million ($32.6 million) or 21.2 percent in the fourth quarter of 2007, and RMB 458.1 million ($67.1 million) or 21.6 percent in the third quarter of 2008. An inventory provision of RMB 78.0 million ($11.4 million) was recorded in the fourth quarter of 2008 compared with no provision in the fourth quarter of 2007 and third quarter of 2008. Operating loss in the fourth quarter of 2008 was RMB 121.1 million ($17.8 million), compared with operating income of RMB 132.9 million ($19.5 million) in the fourth quarter of 2007 and operating income of RMB 433.3 million ($63.5 million) in the third quarter of 2008. Net loss per diluted ADS in the fourth quarter was RMB 0.68 ($0.10), compared with net income per diluted ADS of RMB 0.64 ($0.09) in the same period of 2007 and net loss per diluted ADS of RMB 2.47 ($0.36) in the third quarter of 2008.
Non-GAAP operating loss in the fourth quarter of 2008 was RMB 88.9 million ($13.0 million), compared with operating income of RMB 195.6 million ($28.7 million) in the fourth quarter 2007 and operating income of RMB 416.0 million ($61.0 million) in the third quarter of 2008. Net loss per diluted ADS was RMB 0.76 ($0.11), compared with net income per diluted ADS of RMB 1.05 ($0.15) in the same period of 2007 and net income per diluted ADS of RMB 1.61 ($0.24) in the third quarter of 2008.
Fiscal Year 2008 Results
Fiscal year 2008 revenue was RMB 5.5 billion ($800.0 million), an increase of 102.6 percent from RMB 2.7 billion ($394.8 million) in 2007. Total shipments were 277 MW.
On a GAAP basis, total gross profit in 2008 was RMB 992.0 million ($145.4 million) or 18.2 percent, compared with RMB 600.9 million ($88.1 million) or 22.3 percent in 2007. Operating income for 2008 was RMB 692.0 million ($101.4 million), compared with RMB 446.4 million ($65.4 million) in 2007. In 2008 net loss per diluted ADS was RMB 2.31 ($0.34), compared with net income per diluted ADS of RMB 2.93 ($0.43) in 2007.
On a non-GAAP basis, operating income in 2008 was RMB 805.2 million ($118.0 million) compared with RMB 538.0 million ($78.9 million) in 2007. In 2008 net loss per diluted ADS was RMB 3.03 ($0.44), compared with net income per diluted ADS of RMB 3.60 ($0.53) in 2007.
Liquidity
At Dec. 31, 2008, JA Solar had cash and cash equivalents of RMB 1.9 billion ($282.8 million), investments of RMB 68.3 million ($10.0 million), and total working capital of RMB 3.0 billion ($433.8 million).
During the fourth quarter of 2008, JA Solar conducted open market repurchases of the convertible notes due 2013. Through Dec. 31, 2008, JA Solar repurchased $78.5 million aggregate principal amount of the convertible notes for a total cash consideration of $26.6 million. As a result, JA Solar realized a net gain of $29.8 million. Total long-term debt outstanding at Dec. 31, 2008 was RMB 2.2 billion ($321.5 million).
2009 Outlook
The company currently expects 2009 revenue to be in the range of RMB 5,668 million ($830 million), to RMB 6,500 million ($952 million). JA Solar's target for total production for 2009 output is 500 MW to 550 MW. The nameplate production capacity by year-end 2009 is expected to be 875 MW.
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 Dec. 31, 2008, which was RMB 6.8225 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 Dec. 31, 2008, or at any other date. The percentages stated in this press release are calculated based on Renminbi.
About Non-GAAP Financial Measures
To supplement its consolidated financial results presented in accordance with GAAP, JA Solar uses the following non-GAAP measures which are adjusted from the most directly comparable GAAP results to exclude items related to share-based compensation, change in fair value of the derivatives, impairment loss on available-for-sale securities and gain on buyback of convertible bond. JA Solar believes that non-GAAP information is useful for analysts and investors to evaluate JA Solar's future on-going performance because they enable a more meaningful comparison of JA Solar's projected cash earnings and performance with its peers and historical results from prior periods. The non-GAAP financial results should be reviewed together with the GAAP results and are not intended to serve as a substitute for results under GAAP, and may be different from non-GAAP measures used by other companies. For more information on this non-GAAP financial measure, please see the tables captioned "Reconciliation of GAAP and non-GAAP Results" set forth at the end of this release, which should be read together with the preceding financial statements prepared under GAAP.
Investor Conference Call / Webcast Details
A conference call has been scheduled for today, Tuesday, March 10, 2009 at 8:00 am Eastern time. The call may be accessed by dialing 1.866.314.5232 (U.S.) or 1.617.213.8052 (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 81194820.
About JA Solar Holdings Co., Ltd.
Based in Shanghai with manufacturing operations in Hebei and Yangzhou, China, 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.
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 our 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.
JA Solar Holdings Co., Ltd.
Condensed Consolidated Statements of Operations
(Unaudited)
For three months ended
Dec. 31, 2007 Sept. 30, 2008 Dec. 31, 2008 Dec. 31, 2008
RMB'000 RMB'000 RMB'000 USD'000
Net revenues 1,051,572 2,120,568 979,032 143,500
Cost of sales (828,875) (1,662,506) (969,366) (142,083)
-------- ---------- -------- --------
Gross profit 222,697 458,062 9,666 1,417
------- ------- ----- -----
Selling, general
and
administrative
expenses (88,287) (17,858) (117,443) (17,214)
Research and
development
expenses (1,461) (6,914) (13,353) (1,957)
Total operating
expenses (89,748) (24,772) (130,796) (19,171)
------- ------- -------- -------
Income /
(loss) from
operations 132,949 433,290 (121,130) (17,754)
------- ------- -------- -------
Interest
expense (1,498) (63,490) (63,611) (9,324)
Interest income 17,193 13,811 14,533 2,130
Change in fair
value of
derivatives - 229,052 118,570 17,379
Foreign
exchange loss (57,305) (40,772) (13,390) (1,963)
Investment loss - (8,320) (231) (34)
Gain on buyback
of convertible
bond - - 203,514 29,830
Other income 1,422 52 159 24
Impairment on
available-for-
sale
securities - (686,320) - -
--- -------- --- ---
Income / (loss)
before income
taxes 92,761 (122,697) 138,414 20,288
------ -------- ------- ------
Income tax
benefits /
(expenses) 5,570 (20,056) 10,377 1,521
----- ------- ------ -----
Net income/
(loss) 98,331 (142,753) 148,791 21,809
------ -------- ------- ------
Net income/ (loss)
per ordinary
shares and ADS
(RMB/USD):
Basic 0.65 (0.92) 0.92 0.14
Diluted 0.64 (2.47) (0.68) (0.10)
JA Solar Holdings Co., Ltd.
Condensed Consolidated Statements of Operations
For the Year Ended
2007 2008 2008
RMB'000 RMB'000 USD'000
(Audited) (Unaudited) (Unaudited)
Net revenues 2,693,700 5,458,310 800,045
Cost of sales (2,092,792) (4,466,275) (654,639)
---------- ---------- --------
Gross profit 600,908 992,035 145,406
------- ------- -------
Selling, general and
administrative expenses (150,319) (271,494) (39,794)
Research and development
expenses (4,200) (28,509) (4,178)
Total operating expenses (154,519) (300,003) (43,972)
-------- -------- -------
Income from operations 446,389 692,032 101,434
------- ------- -------
Interest expense (6,595) (160,542) (23,531)
Interest income 62,580 54,495 7,988
Change in fair value of
derivatives - 564,006 82,669
Foreign exchange loss (112,800) (128,754) (18,872)
Investment loss - (39,043) (5,723)
Gain on buyback of
convertible bond - 203,514 29,830
Other income 5,226 3,560 521
Impairment on available-for-
sale securities - (686,320) (100,597)
--- -------- --------
Income before income taxes 394,800 502,948 73,719
------- ------- ------
Income tax benefits /
(expenses) 5,568 (23,882) (3,500)
----- ------- ------
Net income 400,368 479,066 70,219
------- ------- ------
Preferred shares accretion (515) - -
Allocation of net income to
participating preferred
shareholders (1,648) - -
------ --- ---
Net income available to
ordinary shareholders 398,205 479,066 70,219
------- ------- ------
Net income/(loss) per ordinary
shares and ADS (RMB/USD):
Basic 2.96 3.06 0.45
Diluted 2.93 (2.31) (0.34)
JA Solar Holdings Co., Ltd.
Condensed Consolidated Balance Sheets
December 31,
2007 2008 2008
RMB'000 RMB'000 USD'000
(Audited) (Unaudited) (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents 1,145,033 1,929,433 282,804
Available for sale securities 803,121 68,277 10,008
Accounts receivable from third party
customers 28,820 332,042 48,669
Accounts receivable from related
party customers 24,731 23,009 3,372
Inventories 157,334 591,989 86,770
Value-added tax recoverable - 116,061 17,013
Advances to related party supplier 389,872 415,950 60,967
Advances to third party supplier 898,723 264,497 38,768
Other current assets 42,315 75,020 10,996
Deferred tax assets 1,214 14,146 2,073
----- ------ -----
Total current assets 3,491,163 3,830,424 561,440
--------- --------- -------
Property and equipment, net 532,012 1,369,807 200,778
Intangible asset, net 6,688 11,805 1,730
Deferred tax asset 4,355 14,400 2,111
Advances to third party suppliers 536,332 1,944,912 285,073
Long term Lease Prepayment - 44,399 6,508
Derivative asset-capped call options - 4,485 657
Deferred issuance cost - 58,952 8,641
--- ------ -----
Total assets 4,570,550 7,279,184 1,066,938
========= ========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term bank borrowings 200,000 490,000 71,821
Accounts payable to third parties 10,119 117,982 17,293
Tax payables 342 5,168 757
Advances from third party customers 70,286 65,051 9,535
Other payables to third parties 16,842 132,793 19,464
Payroll and welfare payable 6,364 14,199 2,081
Accrued expenses 15,280 22,766 3,337
Interest payable - 13,458 1,973
Amounts due to related parties 113,890 9,407 1,379
------- ----- -----
Total current liabilities 433,123 870,824 127,640
------- ------- -------
Accrued warranty cost 929 5,185 760
Convertible Bond - 1,532,600 224,639
Embedded derivatives - 115,676 16,955
- ------- ------
Total liabilities 434,052 2,524,285 369,994
------- --------- -------
Commitment and Contingencies
Shareholders' equity:
Ordinary shares 123 124 18
Additional paid-in capital 3,655,194 3,787,271 555,115
Statutory reserves 71,619 169,575 24,855
Retained earnings 417,203 798,312 117,012
Accumulated other comprehensive
income (7,641) (383) (56)
------ ---- ---
Total shareholders' equity 4,136,498 4,754,899 696,944
--------- --------- -------
Total liabilities and shareholders'
equity 4,570,550 7,279,184 1,066,938
========= ========= =========
JA Solar Holdings Co., Ltd.
Reconciliation of GAAP and Non GAAP Results
(Unaudited)
Three Months Ended
Dec. 31, 2007 Sept. 30, 2008 Dec. 31, 2008 Dec. 31, 2008
RMB'000 RMB'000 RMB'000 USD'000
Net income/
(loss)-GAAP 98,331 (142,753) 148,791 21,809
Stock-based
compensation 62,602 (17,245) 32,271 4,730
Change in
fair value
of
derivatives - (229,052) (118,570) (17,379)
Impairment
on
available-
for-sale
securities - 686,320 - -
Gain on
buyback of
convertible
bond - - (203,514) (29,830)
--- --- -------- -------
Net income/
(loss)-Non
GAAP 160,933 297,270 (141,022) (20,670)
======= ======= ======== =======
Three Months Ended
Dec. 31, 2007 Sept. 30, 2008 Dec. 31, 2008 Dec. 31, 2008
RMB RMB RMB USD
Net income/
(loss) per
Diluted ordinary
shares and ADS-GAAP 0.64 (2.47) (0.68) (0.10)
Stock-based
compensation 0.41 (0.10) 0.18 0.03
Change in
fair value
of capped
call
options and
non-
dilutive
components - 0.14 (0.26) (0.04)
Impairment
on
available-
for-sale
securities - 4.04 - -
--- ---- --- ---
Net income/
(loss) per
diluted ordinary
shares and
ADS-Non GAAP 1.05 1.61 (0.76) (0.11)
==== ==== ===== =====
Three Months Ended
Dec. 31, 2007 Sept. 30, 2008 Dec. 31, 2008 Dec. 31, 2008
RMB'000 RMB'000 RMB'000 USD'000
Income from
operations-
GAAP 132,949 433,290 (121,130) (17,754)
Stock-based
compensation 62,602 (17,245) 32,271 4,730
------ ------- ------ -----
Income from
operations-
Non GAAP 195,551 416,045 (88,859) (13,024)
======= ======= ======= =======
Fiscal Year Ended
2007 2008 2008
RMB'000 RMB'000 USD'000
Net income/(loss)-GAAP 400,368 479,066 70,219
Stock-based compensation 91,637 113,192 16,591
Change in fair value of
derivatives - (564,006) (82,669)
Impairment on available-for-
sale securities - 686,320 100,597
Gain on buyback of convertible
bond - (203,514) (29,830)
- -------- -------
Net income/(loss)-Non GAAP 492,005 511,058 74,908
======= ======= ======
Fiscal Year Ended
2007 2008 2008
RMB RMB USD
Net income/(loss) per diluted
ordinary shares and ADS-GAAP 2.93 (2.31) (0.34)
Stock-based compensation 0.67 0.67 0.10
Change in fair value of capped
call options and non-dilutive
components - 0.60 0.08
Impairment on available-for-
sale securities - 4.07 0.60
--- ---- ----
Net income/(loss) per diluted
ordinary shares
and ADS-Non GAAP 3.60 3.03 0.44
==== ==== ====
Fiscal Year Ended
2007 2008 2008
RMB'000 RMB'000 USD'000
Income from operations-GAAP 446,389 692,032 101,434
Stock-based compensation 91,637 113,192 16,591
------ ------- ------
Income from operations-Non GAAP 538,026 805,224 118,025
======= ======= =======
