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