JA Solar reduces losses but shipments and revenue stall

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email

Despite shipments exceeding guidance, JA Solar’s revenue and shipments have stalled since Q2 2012 and are expected to remain flat in Q4.

Although net losses of US$59.1 million were reported for Q3 2012, the company's losses were smaller than in Q2.

JA Solar shipped 418MW of PV products (wafers, cells and modules) in Q3 – higher than the 370MW previously guided. An increase in module shipments to China for utility-scale projects supported the increase, along with module shipments increasing to emerging markets such as Japan.

Dr. Peng Fang, CEO of JA Solar said: “In spite of tough market conditions, shipments exceeded the top end of our guidance in the third quarter, thanks to robust sales across emerging markets. The proportion of modules in our overall sales mix continued to increase, accounting for 68% of revenue and 59% of total shipments in the quarter. In light of the current slowdown in demand and ongoing trade issues in Europe, we continued to explore opportunities in nascent growth markets while stringently managing our cash position.”

However, overall shipments were flat with Q2 (418MW), while management-guided shipments in Q4 would be between 380MW and 420MW.

Weak demand within key European countries and the likelihood that emerging markets will take time to develop meant the company revised down the high-end of previous guidance for the full-year to between 1.55GW – 1.65GW, down from 1.5GW – 1.8GW.


JA Solar reported Q3 2012 net revenue of US$260.9 million, a decline of 9.2% from US$287.5 million in Q2. Lower ASPs (13% decline), notably for utility-scale projects in China and the highly competitive German market were responsible for the revenue decline.

Gross margin was negative 5.9%, compared with positive 4.8% in the second quarter of 2012. The company noted that an inventory provision of US$8.2 million and a reversal of prior provisions for anti-dumping and countervailing duties in the US were factors in the margin decline, though if excluded, the JA Solar would have reported a negative gross margin of 3.7%.


JA Solar management said it believed the company had successfully completed the transition from being a solar cell supplier to a module supplier. The next phase would be to move further downstream.

“Right now we have not announced any strategy on this front. However, we are actively working with our partners in downstream both in China and also in Japan and in other regions,” said Dr Fang in a conference call to discuss financial results.

Dr. Fang later said that it could develop projects directly, instead of just being a module supplier to utility-scale plants in the country. He said that the company had a provisional project pipeline of between 100MW and 200MW, located in Western China, but had not committed to construction at this time. 

“I think the geographical distribution of our shipment in Q4 will be similar to Q3 and China still a positive market here and also the US is increased slightly and Europe is stabilising,” noted Dr. Fang. “And of course in Japanese market we are one of the leading providers over there with a higher ASP. We see some growth in [the] Japanese market and also probably next year we’ll be the major increase in Japanese market.”

However, Dr. Fang also noted that many more PV module suppliers had entered the Japanese market in recent months with the results that greater competition was impacting prices.

With greater transparency in the US market after anti-dumping duties were officially announced, JA Solar management expected the market to improve in the coming quarters.

22 September 2021
To commemorate the World Energy Storage Day(WESD) on 22 September, being recognized worldwide, Customized Energy Solutions (CES) and India Energy Storage Alliance (IESA) is organising the 5th global conference and virtual expo, which will be held virtually on 22 September 2021. WESD is a global movement initiated by various apex trade bodies working to promote and adopt energy storage, e-mobility & green hydrogen technologies for a sustainable future. The forthcoming edition of WESD is expected to attract global participation with an intent to facilitate bi-lateral trade, market development and new research and innovation, which will invite 100+ countries, 100+ regulators & policy makers, 100+ International speakers,1000+ organisations, 100+ partners & exhibitors and 20,000+ global delegates.
28 September 2021
Solar Solutions International is the largest trade show for solar energy in Northwest Europe. Now the solar market has grown up, it's time for the next step. Solar Solutions International displays more than 500 innovations and over 100 practical seminars concerning the latest in energy storage, smart products, and an ever evolving array of solar panels. As an exclusively B2B trade show, Solar Solutions International offers both exhibitors and visitors the chance to network at the highest level. Duurzaam Verwarmd, the largest trade show for sustainable HVAC technology in the Benelux, is held simultaneously. This way your one visit gets you up to date with all of the developments in both sustainable energy and heating.
6 October 2021
Intersolar Europe is the world’s leading exhibition for the solar industry. It takes place as part of The smarter E Europe – the continent’s largest platform for the energy industry. Under the motto “Connecting solar business,” manufacturers, suppliers, distributors, service providers and project planners and developers from around the world meet in Munich every year to discuss the latest developments and trends, explore innovations firsthand and meet potential new customers.
6 October 2021
The future is bright for a new era of US solar and storage, and the 8th annual Solar & Storage Finance Summit will provide opportunities to discuss solutions to the industry’s challenges and provide a networking platform designed to bring together the top minds in the industry to do business. With a mix of high-level, informative presentations and panels, a stellar cast of speakers and audience members with deal-making capacity, the 2021 edition of the event will be a sell-out success.
18 October 2021
Intersolar South America, South America’s largest exhibition and conference for the solar industry, takes place at the Expo Center Norte in São Paulo, Brazil on October 18–20, 2021, and has a focus on the areas of photovoltaics, PV production and solar thermal technologies. At the accompanying Intersolar South America Conference, renowned experts shed light on hot topics in the solar industry.
19 October 2021
This year’s EV World Congress will hold a special role, not only as the first live EverythingEV event in over a year – a chance to renew your connections and re-engage with the EV sector face to face – but also as a chance to share insight and inspiration as world starts to look towards move on post COVID towards hitting ambitious decarbonisation goals in 2030 and beyond. As ever, we will be bringing world leading organisations, cities, and technology providers to the UK to inspire EV innovators, and delve into the challenges facing the sector as the UK looks to revolutionise road transport.

Read Next

September 17, 2021
BP, Abu Dhabi National Oil Company (ADNOC) and Masdar have partnered up to develop low carbon hydrogen hubs and create decarbonised air travel corridors between the UK and UAE in a deal that will see “billions” of dollars of investment.
September 17, 2021
US utility company Dominion Energy Virginia has proposed 15 new energy projects totalling 1GW of power for the state, which Dominion Energy claimed was the largest group of projects to be submitted to the Virginia State Corporation Commission (SCC)
September 17, 2021
Renewables developer Ørsted has promoted Neil O'Donovan to CEO of its onshore business unit following the resignation of his predecessor in August.
September 17, 2021
A 58.5MW floating PV plant in Thailand, said to be the largest install of its kind in the country, has been connected to the grid, according to inverter and floating solutions supplier Sungrow.
PV Tech Premium
September 17, 2021
PV Tech spoke to investors and analysts about why Brazil is fast becoming an attractive market for solar investment.
September 16, 2021
Vistra Energy has welcomed the enactment of clean energy policies in Illinois which the power generation company said will support 300MW of solar and 150MW of battery storage to be built at nine of its coal plant sites. 

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
Solar Media Events
December 1, 2021