JA Solar turns to loss in Q2 2011, cuts 2011 shipment guidance
Aug 19, 2011 - Chinese photovoltaic (PV) equipment major JA Solar (NASDAQ:JASO, FRA:YI2) has lowered its solar cell and module shipment forecast for 2011 to 1.8 GW from 2.2 GW, after reporting a loss for the second quarter of the year.
The company guided for third-quarter shipments of 450 MW to 470 MW.
JA Solar turned to a net loss of CNY 229 million (USD 36m/EUR 25m) in the second quarter of the year from a net profit of CNY 196 million a year before. The company's performance during the period was negatively impacted by the policy changes in Italy and lower-than-anticipated growth in Germany. Tough market conditions and inventory provisions also weighed on its results.
Operating loss for the quarter was CNY 202 million, against operating profit of CNY 363 million a year earlier. Gross margin came negative at 2.7%.
April-June revenue grew by 12.1% on the year to CNY 2.7 billion. Shipments amounted to 401 MW, an increase of 28.9% year-on-year.
As of June 30, the company had cash and cash equivalents of CNY 4.0 billion and long-term borrowings of CNY 4.1 billion.