HOME > News

JA Solar Looks forward to Stronger Demand in the Second Half of 2015

published: 2015-05-19 18:19

JA Solar has announced its financial results for the first quarter of 2015. Its net income rapidly decreased from previous quarter and from the first quarter of 2014, this was explained by the seasonally slow. JA Solar expects a stronger demand in the second half of 2015, particularly in China and North America.

According to the report, net revenue was RMB 2.4 billion ($387.7 million), increased 5.6% from 1Q14 but decreased 32.8% from 4Q14. The gross profit was RMB 386.7 million ($62.4 million), up 1.6% from 1Q14 but declined 30.2% sequentially. The gross margin was 16.1%, which compares to 16.7% in the year-ago quarter, and 15.5% in the fourth quarter of 2014. The reduced raw material costs and high exposure to Japan where pricing was relatively higher explained the sequential gross margin growth.

However, the net income was RMB 35 million, decreased yoy from RMB 85 million and sequentially from RMB 166.1 million. The lower pricing in 1Q15 could account for the decrease of net income.

Mr. Baofang Jin, chairman and CEO of JA Solar, commented, “Moving forward, we expect to see stronger demand in the second half, particularly in China and North America. Meanwhile, we remain focused on the execution of our downstream business and strategically expanding our manufacturing capabilities. We are currently working to establish a new cell manufacturing facility in Malaysia. Malaysia offers an advantageous location for our additional capacity as we continue to evaluate new opportunities in emerging markets, such as Latin America and India.”

First Quarter 2015 Highlights

  • Total shipments were 681.5 MW, an increase of 6.8% y/y and decrease of 28.5% sequentially
  • Shipments of modules and module tolling were 584.1 MW, an increase of 50.5% y/y and decrease of 33.6% sequentially
  • Shipments of cells and cell tolling were 97.4 MW, a decrease of 61.1% y/y and an increase of 33.2% sequentially
  • Net revenue was RMB 2.4 billion ($387.7 million), an increase of 5.6% y/y and a decrease of 32.8% sequentially
  • Gross margin was 16.1%, a decrease of 60 basis points y/y and an increase of 60 basis points sequentially
  • Operating profit was RMB 149.6 million ($24.1 million), compared to RMB 160.9 million ($26.0 million) in the first quarter of 2014, and RMB 222.4 million ($35.9 million) in the fourth quarter of 2014
  • Net income was RMB 35.0 million ($5.6 million), compared to RMB 85.0 million ($13.7 million) in the first quarter of 2014, and RMB 166.1 million ($26.8 million) in the fourth quarter of 2014
  • Earnings per diluted ADS were RMB 0.59 ($0.10), compared to RMB 1.41 ($0.23) in the first quarter of 2014, and RMB 2.55 ($0.41) in the fourth quarter of 2014
  • Cash and cash equivalents were RMB 1.9 billion ($306.2 million), a decrease of RMB 256.7 million ($41.4 million) during the quarter
  • Operating cash flow was negative RMB 237.1 million ($38.2 million), compared to positive RMB 198.2 million ($32.0 million) in the first quarter of 2014
  • Non-GAAP earnings1 per diluted ADS were RMB 0.82 ($0.13), compared to RMB 1.99 ($0.32) in the first quarter of 2014, and RMB 1.74 ($0.28) in the fourth quarter of 2014

 

announcements add announcements     mail print
Share
Recommend