JA Solar's Q3 shipments meet guidance

Author: University of Salford Press Office.

Chinese solar products maker JA Solar Holdings Co Ltd (NASDAQ:JASO) today posted third-quarter financial results that are in-line with its expectations, including a 30.6% year-on-year rise in external shipments.

Total shipments in July-September 2017 amounted to 1,640.9 MW, including 20.5 MW of modules to JA Solar’s own downstream projects. Total module shipments increased by 31.9% on the year to 1,582.5 MW, largely driven by demand from China, the US, Europe and Japan. On a quarter-on-quarter basis, module shipments fell by 26.3%.

At the same time, total cell shipments decreased by 7.3% on the year and 77.3% sequentially to 37.9 MW.

The table below gives more details about the company's financial performance.

in CNY	Q3 2017	Q3 2016	Q2 2017
Net revenue	4.34bn	4.16bn	5.95bn
Gross margin	11.8%	13.8%	12.9%
Operating profit	169.8m	121.4m	255.1m
Net profit	41.9m	44.1m	134.6m
Earnings per diluted ADS	0.89	0.86	2.87
Non-GAAP earnings per diluted ADS	0.89	0.86	2.87

For the final quarter of the year, the company forecasts total cell and module shipments in the range of 1,600 MW to 1,800 MW. It noted that almost all will be external shipments.

"We are seeing some uncertainties around the ongoing trade cases in the U.S. and India, which could impact global solar demand in the mid-term. Additionally, accelerated capacity expansion in the industry is reshaping the competition landscape,” said Baofang Jin, chairman and CEO of JA Solar. He, however, expressed confidence that the company’s balanced global footprint and flexible business model will help it adjust to the evolving market conditions.

(CNY 1.0 = USD 1.317/EUR 1.112)

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