EX-99.1 2 a18-12372_1ex99d1.htm EX-99.1

Exhibit 99.1

 

JA Solar Announces Fourth Quarter and Fiscal Year 2017 Results

 

BEIJING, April 30, 2018 — JA Solar Holdings Co., Ltd. (Nasdaq:JASO) (“JA Solar” or the “Company”), one of the world’s largest manufacturers of high-performance solar power products, today announced its unaudited financial results for its fourth quarter and fiscal year ended December 31, 2017.

 

Fourth Quarter 2017 Highlights

 

·                 Total shipments were 2,205.9 megawatts (“MW”), consisting of 2,088.1 MW of modules and 102.8 MW of cells to external customers, and 15.0 MW of modules to the Company’s downstream projects. External shipments were up 55.2% y/y and 35.2% sequentially

 

·                 Shipments of modules and module tolling were 2,088.1 MW, an increase of 54.3% y/y and 31.9% sequentially

 

·                 Shipments of cells and cell tolling were 102.8 MW, an increase of 74.5% y/y and 171.2% sequentially

 

·                 Net revenue was RMB 5.7 billion ($871.8 million), an increase of 42.1% y/y and 30.6% sequentially

 

·                 Gross margin was 12.2%, a decrease of 70 basis points y/y and an increase of 40 basis points sequentially

 

·                 Operating profit was RMB 210.7 million ($32.4 million), compared to RMB 370.5 million ($56.9 million) in the fourth quarter of 2016, and RMB 169.8 million ($26.1 million) in the third quarter of 2017

 

·                 Net income was RMB 115.5 million ($17.8 million), compared to RMB 353.4 million ($54.3 million) in the fourth quarter of 2016, and RMB 41.9 million ($6.4 million) in the third quarter of 2017

 

·                 Earnings per diluted ADS were RMB 2.46 or $0.38, compared to RMB 6.80 or $1.05 in the fourth quarter of 2016, and RMB 0.89 or $0.14 in the third quarter of 2017

 

·                 Cash and cash equivalents were RMB 1.5 billion ($226.5 million), a decrease of RMB 583.3 million ($89.6 million) during the quarter

 

·                 Non-GAAP earnings1 per diluted ADS were RMB 2.46 or $0.38, compared to RMB 6.80 or $1.05 in the fourth quarter of 2016, and RMB 0.89 or $0.14 in the third quarter of 2017

 


1 JA Solar adjusts net income attributable to the Company’s ordinary shareholders to exclude changes in fair value of certain warrants granted to certain investors in a registered direct offering (the “Offering”) closed on August 16, 2013.

 



 

Fiscal Year 2017 Highlights

 

·                 Total shipments were 7.6 gigawatts (“GW”), consisting of 7,143.1 MW of modules and module tolling and 358.0 MW of cells and cell tolling to external customers, and 127.4 MW of modules to the Company’s downstream projects. External Shipments represented an increase of 52.4% from 4.9 GW in fiscal year 2016

 

·                 Net revenue was RMB 19.7 billion ($3.0 billion), compared to RMB 15.7 billion ($2.4 billion) in fiscal year 2016

 

·                 Gross margin was 12.3%, compared to 14.6% in fiscal year 2016

 

·                 Operating profit was RMB 715.7 million ($110.0 million), compared to an operating profit of RMB 903.2 million ($138.8 million) in fiscal year 2016

 

·                 Net income was RMB 300.1 million ($46.1 million), compared to RMB 719.6 million ($110.6 million) in fiscal year 2016

 

·                 Earnings per diluted ADS were RMB 6.40 or $0.98, compared to RMB 14.58 or $2.24 in fiscal year 2016

 

·                 Cash and cash equivalents were RMB 1.5 billion ($226.5 million), compared to RMB 2.6 billion ($394.9 million) at the end of fiscal year 2016

 

·                 Non-GAAP net income attributable to the Company’s ordinary shareholders was RMB 300.1 million ($46.1 million), compared to a non-GAAP net income attributable to the Company’s ordinary shareholders of RMB 612.8 million ($94.2 million) in fiscal year 2016

 

·                 Non-GAAP earnings per diluted ADS was RMB 6.40 ($0.98), compared to a non-GAAP earnings per diluted ADS of RMB 13.07 ($2.01) in fiscal year 2016

 

Mr. Baofang Jin, Chairman and CEO of JA Solar, commented, “Overall 2017 results were largely in-line with our expectation. While net revenue grew 25% year-over-year, gross margin was negatively impacted by lower ASPs and rising material costs. Additionally, higher operating expenses led to a decline in operating profits and net income in 2017 when compared to 2016.”

 

Mr. Jin continued, “Despite the negative impact of the Section 201 trade case, we continue to invest in R&D to develop high-performance products to strengthen our competitive position. We are confident that our technologies, high-reliability products and balanced global footprint will continue to position JA Solar for a solid future.”

 



 

Fourth Quarter 2017 Results

 

All shipment and financial figures refer to the quarter ended December 31, 2017, unless otherwise specified. All “year over year” or “y/y” comparisons are against the quarter ended December 31, 2016. All “sequential” comparisons are against the quarter ended September 30, 2017.

 

Total shipments were 2,205.9 MW, above the guidance range of 1,600 to 1,800 MW. External shipments of 2,190.9 MW increased 55.2% year over year and 35.2% sequentially.

 

External shipments breakdown by product (MW)

 

 

 

2016Q4

 

2017Q3

 

2017Q4

 

QoQ%

 

YoY%

 

Modules and module tolling

 

1,353.0

 

1,582.5

 

2,088.1

 

31.9

%

54.3

%

Cells and cell tolling

 

58.9

 

37.9

 

102.8

 

171.2

%

74.5

%

Total

 

1,411.9

 

1,620.4

 

2,190.9

 

35.2

%

55.2

%

 

External shipments breakdown by region (percentage)

 

 

 

2016Q4

 

2017Q3

 

2017Q4

 

QoQ(pp)

 

YoY(pp)

 

China

 

58.0

%

47.3

%

43.3

%

-4.0

pp

-14.7

pp

APAC ex-China

 

25.2

%

16.3

%

21.7

%

5.4

pp

-3.5

pp

Europe

 

3.3

%

14.1

%

7.3

%

-6.8

pp

4.0

pp

North America

 

7.4

%

17.2

%

24.5

%

7.3

pp

17.1

pp

South America

 

5.6

%

0.4

%

0.2

%

-0.2

pp

-5.4

pp

Others

 

0.5

%

4.7

%

3.0

%

-1.7

pp

2.5

pp

 

Net revenue was RMB 5.7 billion ($871.8 million), an increase of 42.1% y/y and 30.6% sequentially.

 

Gross profit of RMB 691.6 million ($106.3 million) increased 34.2% y/y and 34.7% sequentially. Gross margin was 12.2%, which compares to 12.9% in the year-ago quarter, and 11.8% in the third quarter of 2017.

 

Total operating expenses of RMB 480.9 million ($73.9 million) were 8.5% of revenue. This compares to operating expenses of 3.6% of revenue in the year-ago quarter, and 7.9% of revenue in the third quarter of 2017.

 

Operating profit was RMB 210.7 million ($32.4 million), compared to RMB 370.5 million ($57.0 million) in the year-ago quarter, and RMB 169.8 million ($26.1 million) in the third quarter of 2017. Operating margin was 3.7%, compared with 9.3% in the prior year period and 3.9% in the previous quarter.

 

Interest expense was RMB 78.2 million ($12.0 million), compared to RMB 72.9 million ($11.2 million) in the year-ago quarter, and RMB 80.3 million ($12.3 million) in the third quarter of 2017.

 

Earnings per diluted ADS were RMB 2.46 or $0.38, compared to earnings per diluted ADS of RMB 6.80 or $1.05 in the year-ago quarter, and earnings per diluted ADS of RMB 0.89 or $0.14 in the third quarter of 2017.

 



 

Fiscal Year 2017 Results

 

Fiscal year 2017 shipments were 7.6 GW, including 127.4 MW of modules to the Company’s downstream projects. External shipments of 7.5 GW represented an increase of 52.4% from 4.9 GW in fiscal year 2016.

 

External shipments breakdown by product (MW)

 

 

 

2016

 

2017

 

YoY%

 

Modules and module tolling

 

4,606.6

 

7,143.1

 

55.1

%

Cells and cell tolling

 

313.8

 

358.0

 

14.1

%

Total

 

4,920.4

 

7,501.1

 

52.4

%

 

External shipments breakdown by region (percentage)

 

 

 

2016

 

2017

 

YoY(pp)

 

China

 

53.3

%

48.4

%

-4.90

pp

APAC ex-China

 

21.6

%

25.6

%

4.00

pp

Europe

 

4.7

%

7.8

%

3.10

pp

North America

 

9.4

%

14.9

%

5.50

pp

South America

 

9.8

%

0.3

%

-9.50

pp

Others

 

1.2

%

3.0

%

1.80

pp

 

Net revenue in fiscal year 2017 was RMB 19.7 billion ($3.0 billion), an increase of 25.5% from RMB 15.7 billion ($2.4 billion) in fiscal year 2016.

 

Total gross profit in fiscal year 2017 was RMB 2.4 billion ($370.3 million), or 12.3% of net revenue, compared with RMB 2.3 billion ($352.5 million), or 14.6% of net revenue, in fiscal year 2016.

 

Operating profit in fiscal year 2017 was RMB 715.7 million ($110.0 million), compared with operating profit of RMB 903.2 million ($138.8 million) in fiscal year 2016.

 

Net income in fiscal year 2017 was RMB 300.1 million ($46.1 million), compared with net income of RMB 719.6 million ($110.6 million) in fiscal year 2016.

 

In fiscal year 2017, net earnings per diluted ADS were RMB 6.40 or $0.98, compared with net earnings per diluted ADS of RMB 14.58 or $2.24 in fiscal year 2016.

 



 

Liquidity

 

As of December 31, 2017, the Company had cash and cash equivalents of RMB 1.5 billion ($226.5 million), and total working capital of RMB 12.6 million ($1.9 million). Total short-term borrowings were RMB 2.9 billion ($447.4 million). Total long-term borrowings were RMB 3.1 billion ($469.9 million), of which RMB 996.0 million ($153.1 million) were due in one year.

 

Currency Convenience Translation

 

The conversion of Renminbi into U.S. dollars 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 December 29, 2017, which was RMB 6.506 to $1.00. 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 December 29, 2017, or at any other date. The percentages stated in this press release are calculated based on Renminbi.

 

Forward-looking Statements

 

This press release 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 “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, and our beliefs regarding our production output and production outlook. 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 Form 20-F 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.

 

About JA Solar Holdings Co., Ltd.

 

JA Solar Holdings Co., Ltd. is a leading manufacturer of high-performance solar power products that convert sunlight into electricity for residential, commercial, and utility-scale power generation. The Company is one of the world’s largest producers of solar power products. Its standard and high-efficiency product offerings are among the most powerful and cost-effective in the industry. The Company distributes products under its own brand and also produces on behalf of its clients.

 

The Company shipped 7.6 GW of solar power products in 2017. JA Solar is headquartered in Beijing, China, and maintains production facilities in Shanghai, Hebei, Jiangsu, Inner Mongolia and Anhui provinces in China, as well as Penang, Malaysia and Bac Giang, Vietnam.

 

For more information, please visit www.jasolar.com.

 

Contact:

 

The Blueshirt Group

 

Ralph Fong

Phone: +1 (415) 489-2195

Email: ralph@blueshirtgroup.com

 



 

JA Solar Holdings Co., Ltd.

Condensed Consolidated Statements of Operations and Comprehensive Income

(Unaudited)

 

 

 

For three months ended

 

 

 

Dec. 31, 2016

 

Sep. 30, 2017

 

Dec. 31, 2017

 

Dec. 31, 2017

 

 

 

RMB’000

 

RMB’000

 

RMB’000

 

USD’000

 

 

 

 

 

 

 

 

 

 

 

Net revenues

 

3,990,642

 

4,341,718

 

5,672,120

 

871,789

 

Cost of sales

 

(3,475,213

)

(3,828,137

)

(4,980,563

)

(765,499

)

Gross profit

 

515,429

 

513,581

 

691,557

 

106,290

 

Selling, general and administrative expenses

 

(99,969

)

(302,786

)

(437,812

)

(67,290

)

Research and development expenses

 

(44,937

)

(40,964

)

(43,047

)

(6,616

)

Total operating expenses

 

(144,906

)

(343,750

)

(480,859

)

(73,906

)

Income from operations

 

370,523

 

169,831

 

210,698

 

32,384

 

Interest expense

 

(72,879

)

(80,283

)

(78,238

)

(12,025

)

Change in fair value of warrant derivatives

 

0

 

 

 

 

Other income/(loss), net

 

95,596

 

(35,594

)

6,780

 

1,042

 

Income before income taxes

 

393,240

 

53,954

 

139,240

 

21,401

 

Income tax expense

 

(39,814

)

(12,061

)

(23,737

)

(3,648

)

Net income

 

353,426

 

41,893

 

115,503

 

17,753

 

Less: loss attributable to noncontrolling interest

 

34,922

 

 

 

 

Net income attributable to JA Solar Holdings

 

318,504

 

41,893

 

115,503

 

17,753

 

 

 

 

 

 

 

 

 

 

 

Net income per share attributable to ordinary shareholders:

 

 

 

 

 

 

 

 

 

Basic

 

1.36

 

0.18

 

0.49

 

0.08

 

Diluted

 

1.36

 

0.18

 

0.49

 

0.08

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

234,290,842

 

234,360,842

 

234,361,641

 

234,361,641

 

Diluted

 

234,305,887

 

234,383,172

 

234,459,146

 

234,459,146

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income

 

 

 

 

 

 

 

 

 

Net income

 

353,426

 

41,893

 

115,503

 

17,753

 

Foreign currency translation adjustments, net of tax

 

(18,532

)

3,276

 

661

 

102

 

Other comprehensive (loss)/income

 

(18,532

)

3,276

 

661

 

102

 

Comprehensive income

 

334,894

 

45,169

 

116,164

 

17,855

 

Loss attributable to noncontrolling interest

 

34,922

 

 

 

 

Comprehensive income attributable to JA Solar Holdings

 

299,972

 

45,169

 

116,164

 

17,855

 

 

 

 

 

 

 

 

 

 

 

NON-GAAP RECONCILIATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income attributable to JA Solar Holdings

 

318,504

 

41,893

 

115,503

 

17,753

 

Change in fair value of warrant derivatives

 

0

 

 

 

 

Non-GAAP net income attributable to JA Solar Holdings

 

318,504

 

41,893

 

115,503

 

17,753

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income per share attributable to ordinary shareholders:

 

 

 

 

 

 

 

 

 

Basic

 

1.36

 

0.18

 

0.49

 

0.08

 

Diluted

 

1.36

 

0.18

 

0.49

 

0.08

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP weighted average number of shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

234,290,842

 

234,360,842

 

234,361,641

 

234,361,641

 

Diluted

 

234,305,887

 

234,383,172

 

234,459,146

 

234,459,146

 

 



 

JA Solar Holdings Co., Ltd.

Condensed Consolidated Statements of Operations

(Unaudited)

 

 

 

For twelve months ended

 

 

 

Dec. 31, 2016

 

Dec. 31, 2017

 

Dec. 31, 2017

 

 

 

RMB’000

 

RMB’000

 

USD’000

 

 

 

 

 

 

 

 

 

Net revenues

 

15,736,876

 

19,659,454

 

3,021,603

 

Cost of sales

 

(13,443,335

)

(17,250,142

)

(2,651,298

)

Gross profit

 

2,293,541

 

2,409,312

 

370,305

 

Selling, general and administrative expenses

 

(1,214,933

)

(1,533,521

)

(235,698

)

Research and development expenses

 

(175,450

)

(160,137

)

(24,613

)

Total operating expenses

 

(1,390,383

)

(1,693,658

)

(260,311

)

Income from operations

 

903,158

 

715,654

 

109,994

 

Interest expense

 

(284,334

)

(324,413

)

(49,861

)

Change in fair value of warrant derivatives

 

70,882

 

 

 

Other income, net

 

153,205

 

7,356

 

1,131

 

Income before income taxes

 

842,911

 

398,597

 

61,264

 

Income tax expenses

 

(123,301

)

(98,470

)

(15,135

)

Net income

 

719,610

 

300,127

 

46,129

 

Less: income attributable to noncontrolling interest

 

35,911

 

 

 

Net income attributable to JA Solar Holdings

 

683,699

 

300,127

 

46,129

 

 

 

 

 

 

 

 

 

Net income per share attributable to ordinary shareholders:

 

 

 

 

 

 

 

Basic

 

2.92

 

1.28

 

0.20

 

Diluted

 

2.92

 

1.28

 

0.20

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding:

 

 

 

 

 

 

 

Basic

 

234,290,842

 

234,331,621

 

234,331,621

 

Diluted

 

234,402,452

 

234,369,595

 

234,369,595

 

 

 

 

 

 

 

 

 

Comprehensive income

 

 

 

 

 

 

 

Net income

 

719,610

 

300,127

 

46,129

 

Foreign currency translation adjustments, net of tax

 

(44,517

)

4,233

 

651

 

Other comprehensive (loss)/income

 

(44,517

)

4,233

 

651

 

Comprehensive income

 

675,093

 

304,360

 

46,780

 

Income attributable to noncontrolling interest

 

35,911

 

 

 

Comprehensive income attributable to JA Solar Holdings

 

639,182

 

304,360

 

46,780

 

 

 

 

 

 

 

 

 

NON-GAAP RECONCILIATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income attributable to JA Solar Holdings

 

683,699

 

300,127

 

46,129

 

Change in fair value of warrant derivatives

 

(70,882

)

 

 

Non-GAAP net income attributable to JA Solar Holdings

 

612,817

 

300,127

 

46,129

 

 

 

 

 

 

 

 

 

Non-GAAP net income per share attributable to ordinary shareholders:

 

 

 

 

 

 

 

Basic

 

2.62

 

1.28

 

0.20

 

Diluted

 

2.61

 

1.28

 

0.20

 

 

 

 

 

 

 

 

 

Non-GAAP weighted average number of shares outstanding:

 

 

 

 

 

 

 

Basic

 

234,290,842

 

234,331,621

 

234,331,621

 

Diluted

 

234,402,452

 

234,369,595

 

234,369,595

 

 


 


 

JA Solar Holdings Co., Ltd.

Condensed Consolidated Balance Sheets

(Unaudited)

 

 

 

Dec. 31,

 

Dec. 31,

 

 

 

2016

 

2017

 

2017

 

 

 

RMB’000

 

RMB’000

 

USD’000

 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

2,569,402

 

1,473,455

 

226,466

 

Restricted cash

 

836,761

 

1,006,252

 

154,658

 

Accounts receivable

 

2,753,678

 

2,770,111

 

425,758

 

Notes receivable

 

563,144

 

77,995

 

11,988

 

Inventories

 

2,460,488

 

3,481,116

 

535,038

 

Advances to suppliers

 

282,369

 

321,344

 

49,390

 

Other current assets

 

799,314

 

847,705

 

130,290

 

Total current assets

 

10,265,156

 

9,977,978

 

1,533,588

 

Property and equipment, net

 

5,219,501

 

6,539,197

 

1,005,056

 

Project asset

 

2,338,648

 

2,945,613

 

452,732

 

Advances to suppliers

 

97,429

 

60,666

 

9,324

 

Prepaid land use rights

 

524,208

 

525,323

 

80,741

 

Long-term investment

 

69,022

 

67,656

 

10,399

 

Other long term assets

 

517,292

 

715,412

 

109,956

 

Total assets

 

19,031,256

 

20,831,845

 

3,201,796

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Short-term borrowings

 

2,912,866

 

2,910,859

 

447,391

 

Accounts payable

 

2,635,525

 

3,481,239

 

535,057

 

Advances from customers

 

610,718

 

719,016

 

110,511

 

Current portion of long term borrowings

 

525,256

 

996,010

 

153,084

 

Accrued and other liabilities

 

1,966,475

 

1,858,266

 

285,610

 

Total current liabilities

 

8,650,840

 

9,965,390

 

1,531,653

 

Long-term borrowings

 

2,701,438

 

2,061,399

 

316,831

 

Other long term liabilities

 

1,217,648

 

2,038,926

 

313,377

 

Total liabilities

 

12,569,926

 

14,065,715

 

2,161,861

 

Total JA Solar Holdings shareholders’ equity

 

6,461,130

 

6,765,930

 

1,039,904

 

Noncontrolling interest

 

200

 

200

 

31

 

Total shareholders’ equity

 

6,461,330

 

6,766,130

 

1,039,935

 

Total liabilities and shareholders’ equity

 

19,031,256

 

20,831,845

 

3,201,796