JA Solar Reports Q1 5/15 2007 Results
Tuesday May 15, 8:16 am ET
HEBEI, China, May 15, 2007 (PRIME NEWSWIRE) -- JA Solar Holdings Co., Ltd. (``JA Solar'', ``the Company'') (NasdaqGM:JASO - News) today reported financial results for the first quarter ended March 31, 2007.
First Quarter 2007 Results
Revenues for the first quarter 2007 were RMB335.1 million (US$43.4 million), compared to revenues of RMB3.0 million (US$0.4 million) for the first quarter 2006, and RMB349.4 million (US$45.2 million) in the fourth quarter 2006.
Gross profit for the first quarter 2007 was RMB68.8 million (US$8.9 million). Gross margin decreased to 20.5% in the first quarter 2007 from 23.9% in the fourth quarter 2006.
Net income available to ordinary shareholders for the first quarter 2007 was RMB58.3 million (US$7.6 million) compared to a net loss available to ordinary shareholders of RMB2.4 million (US$0.3 million) for the first quarter 2006, and net income available to ordinary shareholders of RMB66.9 million (US$8.7 million) for the fourth quarter 2006.
For the first quarter 2007 basic and diluted earnings per ADS were RMB1.59 (US$0.21) and RMB1.57 (US$0.20) respectively. Each ADS represents three of our ordinary shares.
The first quarter 2007 included share-based compensation expense of RMB2.0 million (US$0.3 million), or RMB0.05 (US$0.01) per diluted ADS.
Capital expenditures were RMB101.2 million (US$13.1 million) in the first quarter 2007, as compared to RMB23.5 million (US$3.0 million) in the previous quarter and RMB17.6 million (US$2.3 million) in the first quarter 2006. Depreciation and amortization expenses in the first quarter 2007 were RMB 5.2 million (US$0.7 million), as compared to RMB4.8 million (US$0.6 million) in the previous quarter and RMB0.3 million (US$0.04 million) in the first quarter 2006.
In February 2007, the Company completed its Initial Public Offering (``IPO'') raising proceeds of US$237.9 million, net of issuance costs. The Company's ADSs are quoted on NASDAQ. Further all issued and outstanding Series A redeemable convertible preferred shares were converted into 6,520,000 ordinary shares on a one to one basis upon completion of the Company's IPO.
As of March 31, 2007, JA Solar had cash and cash equivalents of RMB 1.8 billion (US$232.5 million) compared with RMB95.8 million (US$12.4 million) at the end of the fourth quarter 2006 due to the completion of the Company's Initial Public Offering. Short term debt rose to RMB200 million (US$25.9 million) at the end of the first quarter 2007 from RMB150 million (US$19.4 million) at the end of the fourth quarter 2006, primarily as a result of capital expenditures for expanding production scale and cash flow management needs related to PRC foreign currency controls.
The conversion of Renminbi into U.S. dollars for the first quarter of 2007 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 30, 2007, which was RMB7.7232 to US$1.0000. 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 30, 2007, or at any other date. The percentages stated in this press release are calculated based on Renminbi.
Samuel Yang, JA Solar's Chief Executive Officer, said, ``The first quarter was another strong one for JA Solar. We continue to benefit from strong demand worldwide for high-quality cells. We continue to meet the global demand from existing customers, while at the same time focusing our sales efforts to further diversify our solid customer base in emerging solar markets. With reliable supply sources contracted throughout 2007 from incumbent silicon suppliers, an order book that covers most of our sales for the year, and our increased capacity of an additional 100MW to be completed by the end of the third quarter of 2007, we are confident in our ability to deliver on the healthy global demand for our products.''
Herman Zhao, JA Solar's Chief Financial Officer, said, ``We have continued to stress profitability and operational efficiency. Our ability to negotiate favorable pricing for materials and in sales contracts has paid off, and our cost strategies are always geared for the best possible benefit to JA Solar for the long-term. We expect our gross margin for year 2007 to be 19.5% due to stabilizing ASPs, existing raw material contract prices and management of our Hebei expansion plan and related costs.''
Company Reiterates 2007 Outlook
Based on current market conditions and customer forecasts, the Company is reiterating its production outlook for 2007 to be approximately 100MW. This would result in revenues for the full year 2007 in the range of approximately RMB2,128 million (US$280 million) to RMB2,205 million (US$290 million), with a gross margin expected to be approximately 19.5%.
Investor Conference Call / Webcast Details
A conference call has been scheduled for 9:00 p.m. on Tuesday, May 15, 2007 (in Hebei). This will be 9:00 a.m. on Tuesday, May 15, in New York. During the call, time will be set-aside for analysts and interested investors to ask questions of executive officers.
The call may be accessed by dialing +1-201-689-8560. A live webcast of the conference call will be available on the Company's website at jasolar.com. The playback will be available beginning two hours after the live call and will be accessible by dialing +1-201-612-7415. The account number to access the replay is 3055 and the passcode is 241914.
About JA Solar Holdings Co., Ltd.
Based in Hebei, China, JA Solar Holdings Co., Ltd. is an emerging and fast-growing manufacturer of high-performance, monocrystalline solar cells. The Company sells its products to solar module manufacturers who assemble and integrate its solar cells into modules and systems that convert sunlight into electricity. For more information visit jasolar.com.
Safe Harbor Statement
This announcement 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, our beliefs regarding our production output, our forecasts on revenue, production output and our share based compensation for 2007 or part thereof. 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 registration statement on Form F-1 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)
Three months ended
--------------------------
March 31, 2006
RMB USD
----------- -----------
Revenue from third parties -- --
Revenue from related parties 3,015,378 390,431
----------- -----------
Total revenues 3,015,378 390,431
Cost of revenues (2,465,401) (319,220)
----------- -----------
Gross profit 549,977 71,211
Selling, general and administrative
expenses (2,116,047) (273,986)
Research and development expenses (181,643) (23,519)
----------- -----------
Total operating expenses (2,297,690) (297,505)
----------- -----------
Income/ (loss) from operations (1,747,713) (226,294)
----------- -----------
Interest expense (591,404) (76,575)
Interest income 43,766 5,667
Other income -- --
Foreign exchange gain/ (loss) (73,591) (9,529)
----------- -----------
Income/ (loss) before income taxes (2,368,942) (306,731)
Income tax benefit/ (expense) -- --
Net income/ (loss) (2,368,942) (306,731)
----------- -----------
Preferred shares accretion -- --
Allocation of income to participating
preferred share holders -- --
----------- -----------
Net income available to
ordinary shareholders (2,368,942) (306,731)
=========== ===========
Net income/(loss) per ordinary shares
Basic (0.030) (0.004)
Diluted (0.030) (0.004)
Weighted average number of ordinary
shares outstanding:
Basic 80,000,000 80,000,000
Diluted 80,000,000 80,000,000
Net income/(loss) per ADS
Basic (0.089) (0.012)
Diluted (0.089) (0.012)
Weighted average number of ADS
outstanding:
Basic 26,666,667 26,666,667
Diluted 26,666,667 26,666,667
Each ADS represents 3 ordinary shares
Three months ended
--------------------------
December 31, 2006
RMB USD
------------ ------------
Revenue from third parties 309,618,090 40,089,353
Revenue from related parties 39,785,881 5,151,476
------------ ------------
Total revenues 349,403,971 45,240,829
Cost of revenues (265,733,652) (34,407,195)
------------ ------------
Gross profit 83,670,319 10,833,634
Selling, general and administrative
expenses (8,886,291) (1,150,597)
Research and development expenses (645,732) (83,609)
------------ ------------
Total operating expenses (9,532,023) (1,234,206)
------------ ------------
Income/ (loss) from operations 74,138,296 9,599,427
------------ ------------
Interest expense (2,219,396) (287,367)
Interest income 398,977 51,660
Other income 64,414 8,340
Foreign exchange gain/ (loss) 1,043,758 135,146
------------ ------------
Income/ (loss) before income taxes 73,426,049 9,507,205
Income tax benefit/ (expense) -- --
Net income/ (loss) 73,426,049 9,507,205
------------ ------------
Preferred shares accretion (1,113,799) (144,215)
Allocation of income to participating
preferred share holders (5,449,328) (705,579)
------------ ------------
Net income available to
ordinary shareholders 66,862,922 8,657,412
============ ============
Net income/(loss) per ordinary shares
Basic 0.836 0.108
Diluted 0.818 0.106
Weighted average number of ordinary
shares outstanding:
Basic 80,000,000 80,000,000
Diluted 89,803,092 89,803,092
Net income/(loss) per ADS
Basic 2.507 0.325
Diluted 2.452 0.317
Weighted average number of ADS
outstanding:
Basic 26,666,667 26,666,667
Diluted 29,934,364 29,934,364
Each ADS represents 3 ordinary shares
Three months ended
----------------------------
March 31, 2007
RMB USD
------------ ------------
Revenue from third parties 334,669,240 43,332,976
Revenue from related parties 480,467 62,211
------------ ------------
Total revenues 335,149,707 43,395,187
Cost of revenues (266,394,778) (34,492,798)
------------ ------------
Gross profit 68,754,929 8,902,389
Selling, general and administrative
expenses (9,772,067) (1,265,287)
Research and development expenses (920,169) (119,143)
------------ ------------
Total operating expenses (10,692,236) (1,384,431)
------------ ------------
Income/ (loss) from operations 58,062,693 7,517,958
------------ ------------
Interest expense (2,815,537) (364,556)
Interest income 11,492,103 1,487,998
Other income -- --
Foreign exchange gain/ (loss) (6,232,712) (807,012)
-- --
Income/ (loss) before income taxes 60,506,547 7,834,388
Income tax benefit/ (expense) -- --
Net income/ (loss) 60,506,547 7,834,388
------------ ------------
Preferred shares accretion (515,251) (66,715)
Allocation of income to participating
preferred share holders (1,648,040) (213,388)
Net income available to ------------ ------------
ordinary shareholders 58,343,256 7,554,285
============ ============
Net income/(loss) per ordinary shares
Basic 0.529 0.068
Diluted 0.525 0.068
Weighted average number of ordinary
shares outstanding:
Basic 110,279,889 110,279,889
Diluted 111,228,304 111,228,304
Net income/(loss) per ADS
Basic 1.587 0.205
Diluted 1.574 0.204
Weighted average number of ADS
outstanding:
Basic 36,759,963 36,759,963
Diluted 37,076,101 37,076,101
Each ADS represents 3 ordinary shares
JA Solar Holdings Co., Ltd.
Condensed Consolidated Balance Sheets
(Unaudited)
December 31, 2006
RMB USD
------------ ------------
ASSETS
Current assets
Cash and cash equivalents 95,758,377 12,398,795
Accounts receivables from
third party customers 47,719,752 6,178,754
Inventories 154,675,325 20,027,362
Advances to related
party suppliers 39,831,642 5,157,401
Advances to third
party suppliers 1,608,765 208,303
Other current assets 6,673,976 864,146
------------- -------------
Total current assets 346,267,837 44,834,762
------------- -------------
Property and equipment, net 139,399,605 18,049,462
Intangible asset, net 7,224,713 935,456
Other long term assets-advance
to suppliers -- --
------------- -------------
Total assets 492,892,155 63,819,680
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Tax payables 3,639,665 471,264
Advances from third
parties customers 21,329,609 2,761,758
Short-term bank
borrowings 150,000,000 19,422,001
Accounts payable to
third parties 2,501,790 323,932
Other payables to
third parties 2,769,566 358,603
Payroll and welfare payable 2,676,854 346,599
Accrued expenses 3,932,709 509,207
Accounts payable to
related parties 70,868 9,176
Other payable to
related parties 183,555 23,767
------------- -------------
Total current liabilities 187,104,616 24,226,307
------------- -------------
Total liabilities 187,104,616 24,226,307
------------- -------------
Shareholders' equity:
Preferred shares (US$0.0001
par value; 6,520,000 and 0
shares outstanding as of
December 31, 2006
and March 31 2007) 110,037,714 14,247,684
Ordinary shares (US$0.0001 par
value; 493,480,000 shares
authorized,80,000,000 and
138,270,000 shares issued and
outstanding as of December 31,
2006 and March 31, 2007) 66,212 8,573
Additional paid-in capital 106,715,707 13,817,551
Statutory reserve 14,587,748 1,888,822
Retained earnings 74,380,158 9,630,743
------------- -------------
Total shareholders' equity 195,749,825 25,345,689
------------- -------------
Total liabilities and
shareholders' equity 492,892,155 63,819,680
============= =============
March 31, 2007
RMB USD
------------- --------------
ASSETS
Current assets
Cash and cash equivalents 1,795,665,349 232,502,764
Accounts receivables from
third party customers 116,906,817 15,137,096
Inventories 198,656,946 25,722,103
Advances to related
party suppliers -- --
Advances to third
party suppliers 32,982,807 4,270,614
Other current assets 40,632,598 5,261,109
------------- -------------
Total current assets 2,184,844,517 282,893,686
------------- -------------
Property and equipment, net 233,890,985 30,284,207
Intangible asset, net 6,938,073 898,342
Other long term
assets-advance
to suppliers 72,147,600 9,341,672
------------- -------------
Total assets 2,497,821,175 323,417,906
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Tax payables 1,303,971 168,838
Advances from third
parties customers 5,000,058 647,408
Short-term bank
borrowings 200,000,000 25,896,002
Accounts payable to
third parties 3,505,042 453,833
Other payables to
third parties 4,505,876 583,421
Payroll and welfare
payable 3,029,825 392,302
Accrued expenses 5,698,667 737,863
Accounts payable to
related parties 56,664,988 7,336,983
Other payable to
related parties 116,870 15,132
------------- -------------
Total current liabilities 279,825,297 36,231,782
------------- -------------
Total liabilities 279,825,297 36,231,782
------------- -------------
Shareholders'
equity:
Preferred shares (US$0.0001
par value; 6,520,000 and 0
shares outstanding as of
December 31, 2006
and March 31 2007) -- --
Ordinary shares (US$0.0001 par
value; 493,480,000 shares
authorized,80,000,000 and
138,270,000 shares issued and
outstanding as of December 31,
2006 and March 31, 2007) 111,453 14,431
Additional paid-in
capital 2,068,925,223 267,884,455
Statutory reserve 14,587,748 1,888,822
Retained earnings 134,371,454 17,398,417
------------- -------------
Total shareholders' equity 2,217,995,878 287,186,125
------------- -------------
Total liabilities and
shareholders' equity 2,497,821,175 323,417,906
============= =============
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