JA Solar reports record shipments in Q2 on accelerated China demand

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
JA Solar reported second quarter 2016 net revenue of $619.0 million, an increase of 51.9% from the prior year period and up 18.6% from the previous quarter. Image: JA Solar

‘Silicon Module Super League’ (SMSL) member reported record quarterly shipments but missed guidance on total shipments, while reiterating combined cell and module full-year shipment guidance at 5.2GW to 5.5GW.

JA Solar reported second quarter 2016 net revenue of US$619.0 million, an increase of 51.9% from the prior year period and up 18.6% from the previous quarter. Gross margin was 15.3%, a decrease of 110 basis points, compared with prior year period and a decrease of 130 basis points from the first quarter of 2016.
 
The company reported an operating profit of US$28.3 million, compared US$23.5 million in the second quarter of 2015, and US$33.6 million in the first quarter of 2016. Net income was US$24.7 million, compared to US$20.5 million in the second quarter of 2015, and US$23.8 million in the previous quarter.

Total shipments were 1,380.8MW, below guidance of 1,400MW to 1,500MW, which included 151.5MW of modules to its own downstream projects, compared to previous guidance of around 100MW to its downstream business for the second quarter.

Shipments

JA Solar reported shipments of cells and cell tolling reached 95.1MW, an increase of 29.6% over the prior year period but a 20% decline from the previous quarter as the company continues to reduce third party solar cell sales.

Shipments of modules and module tolling were 1,134.2MW, an increase of 58.1% year-on-year and an increase of 23.4% over the previous quarter.

However, total shipments were 1,380.8MW, below guidance of 1,400MW to 1,500MW, which included 151.5MW of modules to its own downstream projects, compared to previous guidance of around 100MW to its downstream business for the second quarter. External shipments were up 55.5% from the prior year period and up 18.4% sequentially.

Baofang Jin, chairman and CEO of JA Solar, commented: “Second quarter results were in line with our expectations, with shipments and revenue growing over 50% year-over-year.  We are also encouraged by our downstream project development achievements as we successfully connected approximately 250MW of solar projects to the grid in the quarter.  As expected, China was our strongest market in the quarter, driven by accelerated activity ahead of subsidy reductions that occurred this summer.”

JA Solar management were cautious over second half 2016 market dynamics, noting potential China end-market weakness.

“While regulatory change should slow the domestic Chinese market in the second half of the year, we believe our balanced global footprint and flexible business model will allow us to adjust to evolving market conditions.  We are carefully controlling capital expenditures and staffing, and selling effort is focused on more robust markets outside of China.  Our project business provides flexibility in our business model, since we can accelerate or slow down activity in order to balance demand for our modules,” added Jin.

Guidance

JA Solar guided lower third quarter total shipments, despite retaining previous full-year guidance. The company expected shipments of 1,200MW to 1,300MW, which included 250MW to 300MW of module shipments to its own downstream projects.

Read Next

January 13, 2022
Reliance Industries has signed a Memorandum of Understanding (MoU) with the government of Gujarat for a total investment of INR5.955 lakh crore (US$80 billion) over 10-15 years to establish 100GW of renewables and set up green technology manufacturing facilities in the state.
January 10, 2022
The Australian Renewable Energy Agency (ARENA) is providing AU$40 million in funding to support research and development (R&D) that can help Australia reach its ‘ultra-low cost solar’ goal, recently added as a priority under the country’s decarbonisation strategy.
January 6, 2022
JinkoSolar has won a tender issued by the China Petroleum Engineering and Construction Corporation (CPECC), an affiliate company of the China National Petroleum Corporation (CNPC), for up to 1.85GW of high efficiency TOPCon modules
November 12, 2021
German conglomerate BayWa AG has witnessed “flourishing” sales of solar PV components take its renewables segment to new heights in the first nine months of 2021.
June 2, 2021
The first phase of GCL System Integration Technology's (GCL-SI) 60GW module factory in Hefei, in China’s Anhui Province, is on track to start production this September.
May 13, 2021
The solar module manufacturing subsidiary of Italian utility Enel is aiming to scale up annual production capacity to 3GW in the second half of 2023, the company has confirmed.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 8, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal
Solar Media Events
April 25, 2022
Berlin, Germany