China’s tier-one solar PV manufacturer JA Solar announced financial results for the second quarter of 2016. The results were as positive as JA Solar expected, and the company forecasts to deliver 5.2~5.5GW of solar in 2016.
In 2Q16, JA Solar’s total shipments were 1,380.8MW, including 1,229.3MW of modules and cells to external customers. External shipments grew up by 55.5% YoY and by 18.4% QoQ. The 1,380.8MW total shipments were in line with the low end of the previously announced guidance range of 1,400 to 1,500 MW.
Module shipments in 2Q16 increased 58.1% YoY and 23.4% QoQ to 1,134.2MW thanks to China’s strong demand during the quarter. JA Solar’s shipped 63.9% of modules domestically to Chinese customers, up from 59.6% in 1Q16 and 45.3% in 2Q15.
Strong shipments brought net revenue of RMB4.1 billion, up by 51.9% YoY and 18.6% QoQ. However, gross margin decreased slightly from 16.4% in 2Q15 and 16.6% in 1Q16 to 15.3% although gross profit of RMB 628.3 million increased 41.1% YoY and 9.2% QoQ.
Operation profit was RMB 188 million, compared to RMB 156.1 million in 2Q15 and RMB 223.3 million in 1Q16. Operating margin declined to 4.6%.
Net income of RMB 164.1 million was up from RMB 136 million in 2Q15 and RMB 158 million in 1Q16. Earnings per diluted ADS were RMB 2.87, while Non-GAAP earnings per diluted ADS were RMB 2.04.
“Second quarter results were in line with our expectations, with shipments and revenue growing over 50% year-over-year,” commented Baofang Jin, Chairman and CEO of JA Solar. “As expected, China was our strongest market in the quarter, driven by accelerated activity ahead of subsidy reductions that occurred this summer.”
In 2Q16, JA Solar connected approximately 250MW of solar projects to the grid.
As for the slowing down market and negative outlook to 3Q, Jin said “we believe our balanced global footprint and flexible business model will allow us to adjust to evolving market conditions. We are carefully controlling capital expenditures and staffing, and selling effort is focused on more robust markets outside of China.”
JA Solar therefore expects to deliver 1.2~1.3GW of modules and cells shipments in 3Q. For the full year 2016, JA Solar reiterates its prior shipment guidance of 5.2~5.5 GW, including 250~300 MW of module shipments to its downstream projects.