JA Solar achieves highest module shipment growth in industry for 2014

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email

Updated: Major tier-1 PV manufacturer JA Solar reached module shipments of 2.4GW in 2014, confirming shipment growth of 105% from the previous year and the highest shipment growth in the industry. 

JA Solar reported total shipments grew to approximately 3.1GW, with module shipments reaching 2,406.8MW and solar cell shipments of 651.1MW.

The company reported net revenue of US$1.8 billion, compared to net revenue of US$1.2 billion in fiscal year 2013. Gross margin was 15.6%, compared to 10.6% in fiscal year 2013. The company reported an operating profit was of US$106.8 million, compared to an operating loss of US$14.7 million in fiscal year 2013. 

In the fourth quarter of 2014, JA Solar reported total shipments of 952.7MW, above the high end of the previously announced guidance of 850 to 900MW. Shipments grew 21.3% sequentially and 43.2% year over year.

Net revenue in the quarter was US$576.4 million), an increase of 65.3% year over year and 18.4% sequentially. Growth was said to be driven by strong sales in China, and solid sequential and year over year growth in Europe and North America. 

Revenue growth exceeded shipment growth as product mix shifted to over 90% modules, compared to lower margin cells. 

Gross profit in the quarter was US$89.3 million, which increased 65.4% year over year and 21.9% sequentially. Gross margin was 15.5%, which compares to 15.5% in the year-ago quarter, and 15.0% in the third quarter of 2014. The sequential gross margin increase was driven by the continued shift in mix to modules.

Baofang Jin, chairman and CEO of JA Solar, commented, “Our results in Q4 confirm the visibility we had coming into the quarter. Demand in the China market was as strong as expected, as developers and utilities rushed to meet aggressive government-directed goals for the year. We started the quarter with all of our capacity booked, and demonstrated excellent manufacturing execution to fill orders, resulting in a shipment growth of 43% year-over-year and 21% sequentially. We executed at the margin level too, with product and geographic mix drive sequentially higher gross margin. Filling capacity as we grow enabled us to show steady bottom line improvement. We grew non-GAAP earnings per ADS by 34% sequentially and 85% year over year.

“These strong results capped a year of achievement for JA, in which we solidified our position as a leader within the top tier of solar equipment producers. We expect our revenue growth rate of 57% to be among the highest in the industry. Our strategic decision to shift our product mix to more profitable modules and better geographies paid off, with gross profit more than doubling as our gross margin expanded by 500 basis points. We continued to invest heavily in R&D, increasing this expense by 58%, but held other operating expenses under control, resulting in solid operating and net margins. Our intention in 2015 is to sustain this track record of rapid growth and high profitability.”

2015 Guidance

JA Solar guided first quarter 2015 total cell and module shipments to be in the range of 680MW to 750MW and full-year shipments to be in the range of 3.6 GW to 4.0 GW, including 200MW to 300MW of modules shipments to its downstream projects.

Capacity expansion

JA Solar noted in its fourth quarter and full year earnings call that it expected to increase both solar cell and PV module capacity to 3.5GW, up from 2.8GW in 2014. 
However, the capacity expansion guidance is 100MW less than previous guidance of 3.6GW. 

Management noted in the earnings call that the new capacity at its China facilities would be completed in the first quarter of 2015, while overseas expansion at its JV facility in South Africa was said to be around 400MW and would be completed later in the year. 

The company is planning capital expenditure of US$150 million in 2015 to achieve capacity expansion targets. 

PV Projects

JA Solar noted that it expected downstream project business to triple in 2015 to around 300MW, which will include projects planned outside of China for the first time. The company built and grid connected one 100MW power plant in China in 2014.

Management noted projects outside China include South Africa and Latin Amercia as well as a project in the US.

26 January 2022
Join this free webinar for our analysis of the growth of N-Type technology including; new capacity expansions and production output. We'll also be looking at the global manufacturing footprint with forecasts on how much product will be made outside of China this year and which companies are driving technology change across the crystalline silicon value chain.
23 February 2022
Held annually since 2016, the Energy Storage Summit Europe is the place to be for senior stakeholders in the European storage industry. Designed to accelerate deployment of storage, we examine evolving chemistries, business models, project design, revenue stacks and use cases for storage. The 2022 edition will include exclusive content around longer duration solutions, energy strategies for wide-scale deployment of EVs and "EnTech", the event which sits at the intersection of digitisation, decentralisation and decarbonation of the power system. Come to meet TSOs, DSOs, Utilities, Developers, Investors and Lenders and leave with new contacts, partners and a wealth of information.
7 March 2022
Take your chance to join the most powerful platform in the MENA region. Middle East Energy (MEE), Intersolar, and ees, the leading energy exhibitions are joining hands to co-deliver an outstanding renewables and energy storage event at Middle East Energy 2021. Renewables and energy storage at MEE is the largest gathering of solar and renewable energy industry professionals in the Middle East & Africa, offering the most effective trade focused platform to international manufacturers and distributors looking to meet regional buyers.
8 March 2022
As Solar Finance & Investment enters its ninth year, we sit on the cusp of a new power market with solar at its heart. The 2022 edition of the event will build on our years of expertise and relationships to bring investors and lenders together with top developers. Connect with leaders in the field and use exclusive insights to drive investment and development decisions for the future. Meet new and existing project partners at the largest gathering of European solar investors and lenders.
23 March 2022
When it comes to storage, the US market exceeded a gigawatt of advanced energy storage installations (weighted towards lithium ion) at 1.46 GW, more than the previous six years in total! An exponential growth rate could see the market hit 7.5 GW p.a. by 2025. The summit will provide a wealth of content around this vital piece in the US power puzzle, with sessions dedicated to explore how companies are making money from batteries, the latest chemistries and their applications as they apply to different use-cases. We ask how investors can match ESG criteria to batteries and we will bring case studies of successful deployment and project execution onto the stage to examine how you can ensure your own projects are successful.
29 March 2022
Now in its 10th sell-out year, Large Scale Solar returns to Lisbon in 2022. We are excited to gather together face-to-face with the European solar industry as we provide unique and exclusive access to a powerful selection of the market's key stakeholders. Join this elite summit to find out how the market is maturing, which new markets are becoming more exciting, how technology is evolving and who's driving the market forward into the 2020s. Always senior, packed with developers, EPCs, utilities and investors this is the event for companies serious about European solar PV.

Read Next

January 21, 2022
Toronto-based renewables developer Amp Energy has closed on a US$350 million credit facility to advance on a global portfolio of renewables and battery energy storage assets.
January 21, 2022
India is at risk of a supply and demand mismatch for solar equipment if domestic PV manufacturers are unable to meet the quantity and quality required by project developers, Fitch Solutions has warned.
January 21, 2022
The European Commission has launched a public consultation on solar energy on the continent as it continues preparations to publish its solar strategy later this year.
January 21, 2022
US solar installer SunPower is to be hit by a cracking issue discovered in connectors associated with equipment installed in some commercial and industrial (C&I) projects, resulting in charges of around US$31 million.
PV Tech Premium
January 21, 2022
Greece is on track to accelerate solar deployment in the coming years, with the sector boosted by rising demand for renewable offtake agreements from corporations and clean energy policies from the EU, according to the general manager of Greek industrial group Mytilineos’s renewables business.
January 20, 2022
Mississippi authorities have expanded the state’s net metering programme to improve total compensation rates for solar customers and prioritise the adoption of distributed PV for low- to moderate-income (LMI) households.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
January 26, 2022
Free Webinar
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