JA Solar announces strong first quarter results with an optimistic outlook for Q2 and beyond

Facebook
Twitter
LinkedIn
Reddit
Email

JA Solar Holdings’ financial results for its first quarter 2011 have revealed a profitable quarter that even surpassed some Wall Street analysts’ expectations. The company posted total revenue for the quarter of US$556.4 million, which, although shows a 5.5% sequential decrease from 2010’s fourth quarter results of US$588.9 million, still comes in 91.2% higher in a year-over-year comparison with 2010’s first quarter US$290.9 million result.

Shipments in Q1 amounted to 451MW.  Compared to Q4’s 463MW, Q1 results showed a 2.6% sequential dip, but year-over-year the company increased its shipments by 65.8% from Q1 2010’s 272MW. JA Solar’s gross margin also saw a sequential and year-over-year hit, totaling 17.3% in Q1, below Q4’s 19.2% and Q1 2010’s 23%. Gross profit was US$96.3 million in Q1, compared to Q4’s US$113.1 million. However, when compared to Q1 2010’s US$67 million gross profit, the year-over-year gross profit grew by 44%.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

JA Solar finalized its operating income for Q1 at US$83.3 million, contrasted to 2010’s fourth quarter operating income of US$90.2 million and Q1 2010’s US$54.1 million. The company saw its net income for 2011 first quarter beat some analysts’ predictions by improving almost 90% with US$71.8 million or US$0.41 per American Depositary Share.

“Despite the seasonally weaker first quarter and uncertainties surrounding Italy's solar policies, our first quarter performance illustrates that our strategic partners continue to recognize our clear market leadership on costs and technology,” said Dr. Peng Fang, CEO of JA Solar. “Shipments in the first quarter were slightly below our previously announced estimates, primarily due to factory shutdowns during the week-long Chinese New Year holiday which had a stronger impact than anticipated on solar cell production output and shipping schedules. However, overall shipments for the quarter remained more or less in line with production volume. This sustained demand for our products highlights the success of our strategy of developing long-term strategic partnerships with the leading solar players across the global solar markets. Underpinning this is our unique position as the industry's low cost leader, and we are confident that in the future we can achieve even greater production efficiencies and drive costs down further.”

Company officials stressed that JA Solar remains optimistic maintaining its full year guidance with cell and module shipments still expected to exceed 2.2GW in 2011. JA Solar VP, Ming Yang, advised that he is keeping a positive outlook for the company’s overall shipments, especially now that the Italian FiT has been finalized. He advised that JA Solar is seeing promising activity for its order inquiries, particularly from Germany. However, Yang acknowledged that it would take a few weeks for the Italian market to restart, but the company expects cell and module shipments during Q2 2011 to reach above 400MW.

Dr. Fang added, “For the quarter and year ahead we remain focused on building new and productive partnerships that enable us to expand our market presence in key geographies. In particular, we are excited about the high growth potential of the US market and have already secured a number of promising US-focused partnerships, such as our solar cell joint venture with MEMC. These partnerships give us valuable exposure to the utility scale project market and enable us to rapidly grow our US footprint. We are similarly well positioned in China, where our status as one of the largest and most-respected players in the industry will enable us to take advantage of opportunities as the market expands.”

Read Next

September 9, 2025
Iberdrola has signed a 77MW power purchase agreement (PPA) with Italian grocery retail group Selex Gruppo Commerciale.
September 9, 2025
Nautilus and Summit Ridge Energy secured major financing deals to expand community solar projects across multiple US states.
September 9, 2025
The US is forecast to reach between US$55-60 billion in clean energy tax credit monetisation in 2025, according to a report from clean energy financing technology platform Crux.
September 9, 2025
The average price of solar modules sold in Europe fell marginally between July and August, while buyers’ confidence remained steady.
September 9, 2025
The US Solar Energy Industries Association (SEIA) has released a policy blueprint which it claims would “strengthen the reliability of America’s electric grid with solar and storage technologies.”
September 9, 2025
US solar tracker manufacturer Nextracker has acquired Origami Solar, a steel frame technology-focused company, for approximately US$53 million. 

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines