JA Solar Announces Fourth Quarter and Fiscal Year 2014 Results

Pubblicato su 13 mar 2015
JA Solar 
JA Solar Holdings Co., Ltd. today announced its unaudited financial results for its fourth quarter and fiscal year ended December 31, 2014.

Fourth Quarter 2014 Highlights

- Total shipments were 952.7 megawatts ("MW"), increases of +43.2% y/y and +21.3% sequentially

- Shipments of modules and module tolling were 879.6 MW, increases of +142.1% y/y and +26.8% sequentially

- Shipments of cells and cell tolling were 73.1 MW, decreases of 75.8% y/y and 20.5% sequentially

- Net revenue was RMB 3.6 billion ($576.4 million), an increase of +65.3% y/y and +18.4% sequentially

- Gross margin was 15.5%, remained unchanged y/y and an increase of 50 basis points sequentially

- Operating profit was RMB 222.4 million ($35.8 million), compared to RMB 58.9 million ($9.5 million) in the fourth quarter of 2013, and RMB 189.6 million ($30.6 million) in the third quarter of 2014

- Net income was RMB 166.1 million ($26.8 million), compared to RMB 139.5 million ($22.5 million) in the fourth quarter of 2013, and RMB 155.4 million ($25.0 million) in the third quarter of 2014

- Earnings per diluted ADS were RMB 2.55 ($0.41), compared to RMB 1.92 ($0.31) in the fourth quarter of 2013, and remained unchanged from the third quarter of 2014

- Cash and cash equivalents were RMB 2.2 billion ($347.3 million), an increase of RMB 439.7million ($70.9 million) during the quarter

- Operating cash flow was positive RMB 158.5 million ($25.5 million), compared to negative RMB 184.1 million ($30.0 million) in the third quarter of 2014

- Non-GAAP earnings1 per diluted ADS were RMB 1.74 ($0.28), compared to RMB 0.94 ($0.15) in the fourth quarter of 2013, and RMB 1.30 ($0.21) in the third quarter of 2014

Fiscal Year 2014 Highlights

- Shipments grew to approximately 3.1 gigawatts ("GW"), consisting of 2,406.8 MW of modules and module tolling and 651.1 MW of cells and cell tolling, an increase of 47.6% from 2.1 GW in fiscal year 2013

- Net revenue was RMB 11.3 billion ($1.8 billion), compared to net revenue of RMB 7.2 billion ($1.2 billion) in fiscal year 2013

- Gross margin was 15.6%, compared to 10.6% in fiscal year 2013

- Operating profit was RMB 662.5 million ($106.8 million), compared to an operating loss of RMB 91.3 million ($14.7 million) in fiscal year 2013

- Net income was RMB 446.7 million ($72.0 million), compared to a net loss of RMB 426.5 million ($68.7 million) in fiscal year 2013

- Earnings per diluted ADS was RMB 6.88 ($1.11), compared to a loss per diluted ADS of RMB 11.76 ($1.89) in fiscal year 2013

- Cash and cash equivalents at the end of the fiscal year were RMB 2.2 billion ($347.3 million), compared with RMB 2.1 billion ($341.6 million) at the end of fiscal year 2013

- Operating cash flow was positive RMB 526.2 million ($84.8 million), compared to operating cash flow of positive RMB 1.5 billion ($236.1 million) in fiscal year 2013

- Non-GAAP net income attributable to the Company's ordinary shareholders was RMB 349.8 million ($56.4 million), compared to a non-GAAP net loss attributable to the Company's ordinary shareholders of RMB 378.2 million ($61.0 million) in fiscal year 2013

- Non-GAAP earnings per diluted ADS in fiscal year 2014 was RMB 5.45 ($0.88), compared to a non-GAAP loss per diluted ADS of RMB 9.39 ($1.51) in fiscal year 2013

Mr. Baofang Jin, chairman and CEO of JA Solar, commented, "Our results in Q4 confirm the visibility we had coming into the quarter. Demand in the China market was as strong as expected, as developers and utilities rushed to meet aggressive government-directed goals for the year. We started the quarter with all of our capacity booked, and demonstrated excellent manufacturing execution to fill orders, resulting in a shipment growth of 43% year-over-year and 21% sequentially. We executed at the margin level too, with product and geographic mix drive sequentially higher gross margin. Filling capacity as we grow enabled us to show steady bottom line improvement. We grew non-GAAP earnings per ADS by 34% sequentially and 85% year over year.

"These strong results capped a year of achievement for JA, in which we solidified our position as a leader within the top tier of solar equipment producers. We expect our revenue growth rate of 57% to be among the highest in the industry. Our strategic decision to shift our product mix to more profitable modules and better geographies paid off, with gross profit more than doubling as our gross margin expanded by 500 basis points. We continued to invest heavily in R&D, increasing this expense by 58%, but held other operating expenses under control, resulting in solid operating and net margins. Our intention in 2015 is to sustain this track record of rapid growth and high profitability.

"With profitability restored and our intended mix shift to modules complete, our focus now turns to important initiatives that will drive the next leg of growth. In particular, we are enthusiastic about expanding sales into new, underpenetrated geographies such as North America, South America, and India. We expect to sustain our technology leadership with record new efficiencies in our Recium and Percium cells. And we intend to accelerate our downstream project development segment by more than doubling our planned installations this year.

"We are optimistic and confident about the future for JA Solar. We have established our industry leadership in many ways, whether it be the talent and hard work of our employees, or the strength of our customer relationships. We expect our leadership position to drive outstanding results in the year ahead, creating success for our customers, shareholders, and employees."

Fourth Quarter 2014 Financial Results

All shipment and financial figures refer to the quarter ended December 31, 2014, unless otherwise specified. All "year over year" or "y/y" comparisons are against the quarter ended December 31, 2013. All "sequential" comparisons are against the quarter ended September 30, 2014.

Total shipments were 952.7 MW, above the high end of the previously announced guidance of 850 to 900 MW. Shipments grew 21.3% sequentially and 43.2% year over year.


Net revenue was RMB 3.6 billion ($576.4 million), an increase of 65.3% y/y and 18.4% sequentially. Growth was driven by exceptional strength in China, and also benefited from solid sequential and year over year growth in Europe and North America. Revenue growth exceeded shipment growth as our mix shifted to over 90% modules, which command a higher price point and better margins than cells.

Gross profit of RMB 553.9 million ($89.3 million) increased 65.4% y/y and 21.9% sequentially. Gross margin was 15.5%, which compares to 15.5% in the year-ago quarter, and 15.0% in the third quarter of 2014. The sequential gross margin increase was driven by the continued shift in mix to modules.

Total operating expenses of RMB 331.5 million ($53.4 million) were 9.3% of revenue. This compares to operating expenses of 12.8% of revenue in the year-ago quarter, and 8.8% of revenue in the third quarter of 2014. The sequential increase in operating expense was primarily due to a provision against a prepayment of RMB 63.3 million ($10.2 million) to one of our suppliers.

Operating profit was RMB 222.4 million ($35.8 million), compared to RMB 58.9 million ($9.5 million) in the year-ago quarter, and RMB 189.6 million ($30.6 million) in the third quarter of 2014. Operating margin was 6.2%, compared with 2.7% in the prior year period and 6.3% in the previous quarter.

Interest expense was RMB 61.5 million ($9.9 million), compared to RMB 50.7 million ($8.2 million) in the year-ago quarter, and RMB 56.7 million ($9.1 million) in the third quarter of 2014.

The change in fair value of warrant derivatives was positive RMB 48.7 million ($7.8 million), compared with positive RMB 75.3 million ($12.1 million) in the third quarter of 2014, and positive RMB 87.3 million ($14.1 million) in the year-ago quarter. The warrants were issued on August 16, 2013 in conjunction with the Company's $96 million registered direct offering. The positive change in fair value, which was a non-cash gain, was mainly due to the decrease in the Company's stock price during the quarter.

Earnings per diluted ADS were RMB 2.55 ($0.41), compared to earnings per diluted ADS of RMB 1.92 ($0.31) in the year-ago quarter, and earnings per diluted ADS of RMB 2.55 ($0.41) in the third quarter of 2014.

Operating cash flow was RMB 158.5 million ($25.5 million).

Fiscal Year 2014 Results

Fiscal year 2014 shipments were 3.1 GW, an increase of 47.6% from 2.1 GW in fiscal year 2013.


Net revenue in fiscal year 2014 was RMB 11.3 billion ($1.8 billion), an increase of 57.3% from RMB 7.2 billion ($1.2 billion) in fiscal year 2013.

Total gross profit in fiscal year 2014 was RMB 1.8 billion ($283.1 million), or 15.6% of net revenue, compared with RMB 762.3 million ($122.9 million), or 10.6% of net revenue, in fiscal year 2013.

Operating profit in fiscal year 2014 was RMB 662.5 million ($106.8 million), compared with operating loss of RMB 91.3 million ($14.7 million) in fiscal year 2013. In fiscal year 2014, net earnings per diluted ADS was RMB 6.88 ($1.11), compared with net loss per diluted ADS of RMB 11.76 ($1.89) in fiscal year 2013.

In fiscal year 2014, the Company generated positive operating cash flow of RMB 526.2 million ($84.8 million), or RMB 10.84 ($1.75) per diluted ADS. Cash flow results also reflect the impact of the reclassification of RMB 437.6 million ($70.5 million) from operating cash outflow to investing cash outflow in Q4, due to the Company's decision to retain and operate certain projects that were originally intended to be sold.

Liquidity

As of December 31, 2014, the Company had cash and cash equivalents of RMB 2.2 billion ($347.3 million), and total working capital of RMB 2.0 billion ($325.6 million). Total short-term borrowings were RMB 2.3 billion ($366.7 million). Total long-term borrowings were RMB 1.92 billion ($310.2 million), of which RMB 22.0 million ($3.5 million) were due in one year.

Subsequent Events

On January 25, 2015, JA connected to the national grid its 100 MW PV power plant, consisting of two phases of 50MW each, in the city of Dunhuang, Gansu Province, China. The Company funded the project with long-term project financing from the Industrial and Commercial Bank of China. As of the date of this press release, the company received RMB 300 million ($48.4 million) loan for Phase I and has secured an additional RMB 300 million ($48.4 million) for Phase II. The project is now generating revenue from electricity sales.

Business Outlook

For the first quarter of 2015, the Company expects total cell and module shipments to be in the range of 680 MW to 750 MW. Full year 2015 shipments are expected to be in the range of 3.6 GW to 4.0 GW, including 200 MW to 300 MW of modules shipments to the Company's downstream projects.


source: JA Solar
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