JA Solar Announces Fourth Quarter and Fiscal Year 2016 Results

Publié le 17 mars 2017
JA Solar 
JA Solar Holdings Co., Ltd. today announced its unaudited financial results for its fourth quarter and fiscal year ended December 31, 2016.

Fourth Quarter 2016 Highlights

- Total shipments were 1,416.2MW, consisting of 1,353.0MW of modules and 58.9MW of cells to external customers, and 4.3MW of modules to the Company's downstream projects. External shipments were up +5.5% y/y and up +13.8% sequentially

- Shipments of modules and module tolling were 1,353.0MW, an increase of +4.3% y/y and +12.8% sequentially

- Shipments of cells and cell tolling were 58.9MW, an increase of +43.0% y/y and +44.0% sequentially

- Net revenue was RMB 4.0 billion ($574.8 million), a decrease of 13.1% y/y and 4.1% sequentially

- Gross margin was 12.9%, a decrease of 420 basis points y/y and 90 basis points sequentially

- Operating profit was RMB 370.5 million ($53.4 million), compared to RMB 260.1 million ($37.5 million) in the fourth quarter of 2015, and RMB 121.4 million ($17.5 million) in the third quarter of 2016

- Net income was RMB 353.4 million ($50.9 million), compared to RMB 184.9 million ($26.6 million) in the fourth quarter of 2015, and RMB 44.1 million ($6.4 million) in the third quarter of 2016

- Earnings per diluted ADS were RMB 6.80 or $0.98, compared to RMB 3.39 or $0.49 in the fourth quarter of 2015, and RMB 0.86 or $0.12 in the third quarter of 2016

- Cash and cash equivalents were RMB 2.6 billion ($370.1 million), an increase of RMB 580.6 million ($83.6 million) during the quarter

- Non-GAAP earnings1 per diluted ADS were RMB 6.80 or $0.98, compared to RMB 3.14 or $0.45 in the fourth quarter of 2015, and RMB 0.86 or $0.12 in the third quarter of 2016

Fiscal Year 2016 Highlights

- Total shipments were 5.2GW, consisting of 4,606.6MW of modules and module tolling and 313.8MW of cells and cell tolling to external customers, and 245.8MW of modules to the Company's downstream projects. External Shipments represented an increase of 24.9% from 3.9GW in fiscal year 2015

- Net revenue was RMB 15.7 billion ($2.3 billion), compared to net revenue of RMB 13.5 billion ($1.9 billion) in fiscal year 2015

- Gross margin was 14.6%, compared to 17.0% in fiscal year 2015

- Operating profit was RMB 903.2 million ($130.1 million), compared to an operating profit of RMB 865.0 million ($124.6 million) in fiscal year 2015

- Net income was RMB 719.6 million ($103.6 million), compared to RMB 614.5 million ($88.5 million) in fiscal year 2015

- Earnings per diluted ADS were RMB 14.58 or $2.10, compared to RMB 10.58 or $1.52 in fiscal year 2015

- Cash and cash equivalents at the end of the fiscal year were RMB 2.6 billion ($370.1 million), compared to RMB 2.9 billion ($415.3 million) at the end of fiscal year 2015

- Non-GAAP net income attributable to the Company's ordinary shareholders was RMB 612.8 million ($88.3 million), compared to a non-GAAP net income attributable to the Company's ordinary shareholders of RMB 584.1 million ($84.1 million) in fiscal year 2015

- Non-GAAP earnings per diluted ADS in fiscal year 2016 was RMB 13.07 ($1.88), compared to a non-GAAP earnings per diluted ADS of RMB 9.91 ($1.43) in fiscal year 2015

Mr. Baofang Jin, Chairman and CEO of JA Solar, commented, "While the overall market environment remained challenging, we delivered solid Q4 operating results, topping off a strong 2016 for us. We achieved our 2016 financial and operating goals with revenue and external shipments growing 16% and 25%, respectively. In the fourth quarter, demand across Asia, especially China, exceeded our expectations with the overall APAC region representing over 83% of total shipments."

Mr. Jin continued, "Growth remains a key focus for our team and we are optimistic about our prospects in 2017 and beyond, despite increasing competition in the solar industry. We are committed to investing in research and development, and differentiating our product portfolio with high-power, high-efficiency solar products. We still have some opportunity to improve our cost structure and manufacturing performance through efficiency initiatives, and believe our operations are positioned to benefit as market conditions improve around the world. Looking ahead, we expect demand in the domestic Chinese market to remain solid in the first half of 2017, followed by a potential slowdown in the second half. Nonetheless, we are confident that our balanced global footprint and flexible business model will enable us to adjust to evolving market conditions."

Fourth Quarter 2016 Results

All shipment and financial figures refer to the quarter ended December 31, 2016, unless otherwise specified. All "year over year" or "y/y" comparisons are against the quarter ended December 31, 2015. All "sequential" comparisons are against the quarter ended September 30, 2016.

Total shipments were 1,416.2MW, in line with our previously announced guidance. External shipments of 1,411.9MW increased 5.5% year over year and 13.8% sequentially.

External shipments breakdown by product (MW)


External shipments breakdown by region (percentage)


Net revenue was RMB 4.0 billion ($574.8 million), a decrease of 13.1% y/y and 4.1% sequentially.

Gross profit of RMB 515.4 million ($74.2 million) decreased 34.3% y/y and 10.3% sequentially. Gross margin was 12.9%, which compares to 17.1% in the year-ago quarter, and 13.8% in the third quarter of 2016. The decrease in gross margin was primarily due to a decline of average selling price of solar modules in the fourth quarter of 2016.

Total operating expenses of RMB 144.9 million ($20.9 million) were 3.6% of revenue. This compares to operating expenses of 11.4% of revenue in the year-ago quarter, and 10.9% of revenue in the third quarter of 2016. Included in operating expenses in the fourth quarter of 2016 were a one-time reversal of RMB 348.3 million ($50.2 million) of previously recorded expenses due to the resolution of the Company's dispute with Hemlock Semiconductor Pte. Ltd ("Hemlock"), and a one-time charge of RMB 99.6 million ($14.3 million) resulted from the termination of business relationship with one of the Company's business partners.

Operating profit was RMB 370.5 million ($53.4 million), compared to RMB 260.1 million ($37.5 million) in the year-ago quarter, and RMB 121.4 million ($17.5 million) in the third quarter of 2016. Operating margin was 9.3%, compared with 5.7% in the prior year period and 2.9% in the previous quarter.

Interest expense was RMB 72.9 million ($10.5 million), compared to RMB 66.0 million ($9.5 million) in the year-ago quarter, and RMB 75.4 million ($10.9 million) in the third quarter of 2016.

The change in fair value of warrant derivatives was nil, compared with positive RMB 14.0 million ($2.0 million) in the year-ago quarter, and positive RMB 17 thousand ($2.4 thousand) in the third quarter of 2016. The warrants were issued on August 16, 2013 in conjunction with the Company's $96 million registered direct offering, and expired on August 16, 2016.

Earnings per diluted ADS were RMB 6.80 or $0.98, compared to earnings per diluted ADS of RMB 3.39 or $0.49 in the year-ago quarter, and earnings per diluted ADS of RMB 0.86 or $0.12 in the third quarter of 2016.

Fiscal Year 2016 Results

Fiscal year 2016 shipments were 5.2GW, including 245.8MW of modules to the Company's downstream projects. External shipments of 4.9GW represented an increase of 24.9% from 3.9GW in fiscal year 2015.

External shipments breakdown by product (MW)


External shipments breakdown by region (percentage)


Net revenue in fiscal year 2016 was RMB 15.7 billion ($2.3 billion), an increase of 16.4% from RMB 13.5 billion ($1.9 billion) in fiscal year 2015.

Total gross profit in fiscal year 2016 was RMB 2.3 billion ($330.3 million), or 14.6% of net revenue, compared with RMB 2.3 billion ($330.2 million), or 17.0% of net revenue, in fiscal year 2015. The decline in gross margin was primarily due to the decrease of average selling price of solar modules during 2016.

Operating profit in fiscal year 2016 was RMB 903.2 million ($130.1 million), compared with operating profit of RMB 865.0 million ($124.6 million) in fiscal year 2015. Included in operating expenses in fiscal year 2016 were a one-time reversal of RMB 348.3 million ($50.2 million) of previously recorded expenses due to the resolution of the Company's dispute with Hemlock, and a one-time charge of RMB 99.6 million ($14.3 million) resulted from the termination of business relationship with one of the Company's business partners.

In fiscal year 2016, net earnings per diluted ADS were RMB 14.58 or $2.10, compared with net earnings per diluted ADS of RMB 10.58 or $1.52 in fiscal year 2015.

Liquidity

As of December 31, 2016, the Company had cash and cash equivalents of RMB 2.6 billion ($370.1 million), and total working capital of RMB 1.6 billion ($232.5 million). Total short-term borrowings were RMB 2.9 billion ($419.5 million). Total long-term borrowings were RMB 3.2 billion ($464.7 million), of which RMB 525.3 million ($75.7 million) were due in one year.

Business Outlook

For the first quarter of 2017, the Company expects total cell and module shipments to be in the range of 1,200 to 1,300MW, essentially all being external shipments.

Full year 2017 shipments are expected to be in the range of 6.0 to 6.5GW, including 200 to 250MW of module shipments to the Company's downstream projects. Revenues will not be recognized for the modules shipped to the Company's downstream projects as required by US GAAP.

Manufacturing Capacity Update

As of December 31, 2016, the Company had an annual wafer manufacturing capacity of 2.5GW, cell capacity of 5.5GW, and module capacity of 5.5GW.

JA Solar expects to further expand its annual manufacturing capacity to 3.0GW for wafers, 7.0GW for cells, and 6.0GW for modules by the end of 2017.


Source: JA Solar
Profil ENF des Entreprises Mentionnées dans l’Article

JA Solar (Panneaux Solaires): https://fr.enfsolar.com/ja-solar
JA Solar (Vendeurs): https://fr.enfsolar.com/ja-solar
JA Solar (Installateurs): https://fr.enfsolar.com/ja-solar
JA Solar (Matériaux Solaires): https://fr.enfsolar.com/ja-solar
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