Continued strong demand through 2010 and beyond were cited by JA Solar as it reported second quarter financial results. Both shipment guidance and capacity expansion targets have been raised. Shipments of 311MW in the quarter were above previous guidance of 275MW, an increase of 14% sequentially, while revenue reached US$351M, an increase of 25% sequentially. Net income was US$28.9 million. Customers are wanting place large orders for 2011.
The company currently expects shipments to exceed 1.35GW in 2010, compared with prior guidance of 1GW. JA Solar said actual solar cell production capacity would reach 1.8GW by the end of 2010, compared with 1.5GW, previously guided. Productivity gains with existing manufacturing lines were responsible for the rise in capacity, according to the company.
Its OEM module capacity is expected to reach 500MW, and wafer capacity is expected to reach 300MW by the end of 2010. CapEx remains at approximately US$250 million, for the year.
“Our first half 2010 shipment has surpassed our full year shipment in 2009, while our second quarter shipment has exceeded the full year shipment in 2008,” commented Dr. Peng Fang, CEO of JA Solar. “Business momentum remains strong, and we continue to see very strong orders from existing and new customers, with customers’ requirements exceeding our productive capacity.”
JA Solar noted that sales to international customers reached 46% of total revenue, an increase of 1,000 basis points from the previous quarter.
“We have also made further improvements in our multi-crystalline solar cell process technology, and expect to begin commercial delivery of sixteen point six percent efficiency multi-crystalline solar cells, a significant improvement from conversion efficiency of sixteen point two percent with our previous production process. We have a clear technology roadmap which we believe would enable us to increase conversion efficiency to above 20 percent to extend our technological lead, while at the same time maintaining our cost leadership,” added Fang.