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JA Solar matching production capacity to shipment guidance for 2016

The company is increasing its manufacturing capacity to match expected demand, which will include expanding in-house wafer capacity to 2.0GW, solar cell capacity to 5.5GW and module capacity to 5.5GW by the end of 2016.

JA Solar said it expected full year 2016 shipments to be in the range of 5.2GW to 5.5GW, including 250MW to 300MW of module shipments to its downstream projects.

The company is increasing its manufacturing capacity to match expected demand, which will include expanding in-house wafer capacity to 2.0GW, solar cell capacity to 5.5GW and module capacity to 5.5GW by the end of 2016.

Management noted in the earnings call that the majority of the capacity expansions would take place at its existing facilities in China. However, its integrated cell/module plant in Malaysia could ramp to 600MW to 800MW in 2016, dependent on overseas demand. 

The company said that capital expenditure in 2016 could reach around US$350 million to meet wafer, cell and module planned expansions.

Baofang Jin, chairman and CEO of JA Solar said: “Our outlook for 2016 is bright. We expect growth of over 30%, as countries around the world continue to encourage the growth of clean, renewable energy. We are able to capture this market growth due to our industry-leading reputation for quality and value. We intend to aggressively protect that reputation through our ongoing investment in research and marketing.”

Shipments update

Shipments increased to approximately 4GW in 2015, consisting of 3,672.9MW of modules and module tolling and 265.0MW of cells and cell tolling to external customers, and 53.5MW of modules to its downstream projects. External Shipments represented an increase of 28.8% from 3.1GW in fiscal year 2014.

JA Solar said that in the first quarter of 2016, total cell and module shipments are expected to be in the range of 1GW to 1.1GW, including approximately 100MW of module shipments to its downstream projects. 

Fourth quarter financial results

JA Solar reported fourth quarter 2015 net revenue US$709.3 million, up 20.3% from the previous quarter and up 28.5% year-on-year. 

Gross margin was 17.1%, operating profit was US$40.2 million, compared to US$34.3 million in the fourth quarter of 2014, and US$46.2 million in the previous quarter.

Total shipments in the fourth quarter were 1,366.2 MW, consisting of 1,297.6MW of modules and module tolling and 41.2MW of cells and cell tolling to external customers, and 27.4MW of modules to its downstream projects. Increase of external shipments was 40.5% year-on-year and up 18.8% sequentially.
 
Shipments of modules and module tolling were 1,297.6MW, up 47.5% year-on-year and up 20.8% from the previous quarter.
 
Shipments of cells and cell tolling were 41.2MW, decreases of 43.6% year-on-year and 22.3% lower than the previous quarter.

“Our fourth quarter results continued the momentum we built throughout 2015. We exceeded our operating and financial objectives with shipment and revenue growth of 40.5% and 28.5%, respectively,” added Jin. “We fulfilled strong demand across Asia, especially in China, but also made meaningful advances in North America. We remain committed to expand our market penetration globally, and have made progress in South, Central, and North America.”

JA Solar matching production capacity to shipment guidance for 2016

Shipments of modules and module tolling were 1,297.6MW, up 47.5% year-on-year and up 20.8% from the previous quarter.

Full year financial results

JA Solar reported net revenue US$2.1 billion, compared to net revenue of US$1.7 billion in fiscal year 2014, an increase of 19.7%. Gross margin was 17.0%, compared to 15.6% in fiscal year 2014.
 
The company reported an operating profit of US$133.5 million in 2015, compared to an operating profit of US$102.3 million in 2014.

JA Solar matching production capacity to shipment guidance for 2016

JA Solar reported net revenue US$2.1 billion.

Tags: c-si manufacturing, pv modules, solar cell, ja solar

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