JA Solar's profit hurt by higher costs, lower ASPs in 2017

JA Solar Holdings Co Ltd (NASDAQ:JASO) of China today reported a net profit of CNY 300.1 million (USD 47m/EUR 39m) for 2017, down by 58.3% from 2016, even as external shipments jumped by 52.4%.

Total shipments reached 7.6 GW and included 7.14 GW of modules and module tolling, of which 127.4 MW of modules for own projects.

Chairman and chief executive Baofang Jin said that lower average selling prices (ASPs) and rising material costs led to a lower gross margin, while increased operating expenses hurt operating and net profits. Still, Jin said the results for the year were largely in-line with expectations.

“Despite the negative impact of the Section 201 trade case, we continue to invest in R&D to develop high-performance products to strengthen our competitive position,” the CEO added. China accounted for 48.4% of JA Solar’s external shipments in the year, and the rest of the Asia Pacific region received 25.6%. North America was its third best market with a share of 14.9%.

The table contains details of the firm’s performance in 2017 and the fourth quarter of the year.

JA Solar in November 2017 agreed to be taken private by a group led by its chairman and chief executive Baofang Jin.

(CNY 100 = USD 1.57/EUR 1.3)

Choose your newsletter by Renewables Now. Join for free!