Ja Solar Holdings (NASDAQ:JASO)

Fourth Quarter 2011 Highlights

• Shipments were 398MW, surpassing the company's previous guidance of 310MW to 330MW and compared to shipments of 445MW in the third quarter of 2011
• Net revenue was RMB 1.95 billion ($309.1 million), compared to RMB 2.5 billion ($393.2 million) in the third quarter of 2011
• Gross margin was positive 0.5%, compared to gross margin of negative 4.3% in the third quarter of 2011
• Operating loss was RMB 487.6 million ($77.5 million), compared to operating lossof RMB 276.3 million ($43.9 million) in the third quarter of 2011. Excluding a long-lived assets impairment of RMB 303.1 million ($48.2 million), operating loss would have been RMB 184.5 million ($29.3 million)
• Net loss was RMB 429.6 million ($68.3 million) and loss per diluted ADS was RMB 2.45 ($0.39), compared to loss per diluted ADS of RMB 2.28 ($0.36) in the third quarter of 2011
• Operating cash flow was positive RMB 545.3 million ($86.6 million), compared to negative RMB 282.7 million ($44.9 million) in the third quarter of 2011
• Cash and cash equivalents at the end of the quarter were RMB 3.9 billion ($617.9 million), compared to RMB 3.2 billion ($513.3 million) at the end of the third quarter of 2011

"Despite challenging market conditions, we recorded positive operating cash flow and positive gross margin for the fourth quarter," said Dr. Peng Fang, chief executive officer of JA Solar. "We are encouraged that shipments for the fourth quarter were well in excess of the high end of our guidance, spurred by sustained, strong demand across our diverse customer base for our high-efficiency cells and modules. Our prudent approach to inventory and cash management enabled us to achieve positive operating cash flow of $86.6 million for the quarter."

Dr. Fang continued, "Demand for our high-quality, high-efficiency modules continues to grow quickly. Total module shipments accounted for over 45% of total shipments and over 56% of revenue in this quarter. This is the first quarter in which revenue from modules has exceeded revenue from solar cells, marking an important milestone in our efforts to build our module market share. Powered by JA Solar's proprietary SECIUM and MAPLE technologies, our high-efficiency modules offer higher power output than the industry average. This key differentiator has helped us to win new customers."

"Our emphasis on building long-term partnerships with the leading players across the industry value chain was the key driver of our strong shipment results in the fourth quarter and positions JA Solar for continued improvement as we move into 2012. Over the past year, we have established valuable new relationships with leading utility companies and project developers in fast-growing markets like the U.S., China, India and Japan, which we expect will translate into healthy shipment volumes throughout the year ahead. China, in particular, represents a very promising market for us, with shipments to the China end market accounting for approximately 22% of our module sales revenue for the fourth quarter. Our strong balance sheet gives our partners and financial institutions confidence that JA Solar will be able to sustain its position as a long-term leader in the industry. With demand for our high-efficiency products remaining robust, in 2012 we will continue to focus on achieving improvements in conversion efficiency and the power range of our module products, while driving further cost reductions. We look forward to continuing to work with our customers to grow our market share in key markets over the next twelve months and beyond."

Business Outlook

For the first quarter of 2012, the Company expects total cell and module shipments to be between 320MW and 350MW. For the full year 2012, the Company expects total cell and module shipments to be between 1.8GW and 2.0GW.

Web site: http://www.jasolar.com

Last updated March 20, 2012