JA Solar Announces Fourth Quarter And Fiscal Year 2016 Results

JA Solar Holdings Co., Ltd. today announced its unaudited financial results for its fourth quarter and fiscal year ended December 31, 2016.
Fourth Quarter 2016 Highlights
- Total shipments were 1,416.2MW, consisting of 1,353.0MW of modules and 58.9MW of cells to external customers, and 4.3MW of modules to the Company's downstream projects. External shipments were up +5.5% y/y and up +13.8% sequentially
- Shipments of modules and module tolling were 1,353.0MW, an increase of +4.3% y/y and +12.8% sequentially
- Shipments of cells and cell tolling were 58.9MW, an increase of +43.0% y/y and +44.0% sequentially
- Net revenue was RMB 4.0 billion ($574.8 million), a decrease of 13.1% y/y and 4.1% sequentially
- Gross margin was 12.9%, a decrease of 420 basis points y/y and 90 basis points sequentially
- Operating profit was RMB 370.5 million ($53.4 million), compared to RMB 260.1 million ($37.5 million) in the fourth quarter of 2015, and RMB 121.4 million ($17.5 million) in the third quarter of 2016
- Net income was RMB 353.4 million ($50.9 million), compared to RMB 184.9 million ($26.6 million) in the fourth quarter of 2015, and RMB 44.1 million ($6.4 million) in the third quarter of 2016
- Earnings per diluted ADS were RMB 6.80 or $0.98, compared to RMB 3.39 or $0.49 in the fourth quarter of 2015, and RMB 0.86 or $0.12 in the third quarter of 2016
- Cash and cash equivalents were RMB 2.6 billion ($370.1 million), an increase of RMB 580.6 million ($83.6 million) during the quarter
- Non-GAAP earnings1 per diluted ADS were RMB 6.80 or $0.98, compared to RMB 3.14 or $0.45 in the fourth quarter of 2015, and RMB 0.86 or $0.12 in the third quarter of 2016
Fiscal Year 2016 Highlights
- Total shipments were 5.2GW, consisting of 4,606.6MW of modules and module tolling and 313.8MW of cells and cell tolling to external customers, and 245.8MW of modules to the Company's downstream projects. External Shipments represented an increase of 24.9% from 3.9GW in fiscal year 2015
- Net revenue was RMB 15.7 billion ($2.3 billion), compared to net revenue of RMB 13.5 billion ($1.9 billion) in fiscal year 2015
- Gross margin was 14.6%, compared to 17.0% in fiscal year 2015
- Operating profit was RMB 903.2 million ($130.1 million), compared to an operating profit of RMB 865.0 million ($124.6 million) in fiscal year 2015
- Net income was RMB 719.6 million ($103.6 million), compared to RMB 614.5 million ($88.5 million) in fiscal year 2015
- Earnings per diluted ADS were RMB 14.58 or $2.10, compared to RMB 10.58 or $1.52 in fiscal year 2015
- Cash and cash equivalents at the end of the fiscal year were RMB 2.6 billion ($370.1 million), compared to RMB 2.9 billion ($415.3 million) at the end of fiscal year 2015
- Non-GAAP net income attributable to the Company's ordinary shareholders was RMB 612.8 million ($88.3 million), compared to a non-GAAP net income attributable to the Company's ordinary shareholders of RMB 584.1 million ($84.1 million) in fiscal year 2015
- Non-GAAP earnings per diluted ADS in fiscal year 2016 was RMB 13.07 ($1.88), compared to a non-GAAP earnings per diluted ADS of RMB 9.91 ($1.43) in fiscal year 2015
Mr. Baofang Jin, Chairman and CEO of JA Solar, commented, "While the overall market environment remained challenging, we delivered solid Q4 operating results, topping off a strong 2016 for us. We achieved our 2016 financial and operating goals with revenue and external shipments growing 16% and 25%, respectively. In the fourth quarter, demand across Asia, especially China, exceeded our expectations with the overall APAC region representing over 83% of total shipments."
Mr. Jin continued, "Growth remains a key focus for our team and we are optimistic about our prospects in 2017 and beyond, despite increasing competition in the solar industry. We are committed to investing in research and development, and differentiating our product portfolio with high-power, high-efficiency solar products. We still have some opportunity to improve our cost structure and manufacturing performance through efficiency initiatives, and believe our operations are positioned to benefit as market conditions improve around the world. Looking ahead, we expect demand in the domestic Chinese market to remain solid in the first half of 2017, followed by a potential slowdown in the second half. Nonetheless, we are confident that our balanced global footprint and flexible business model will enable us to adjust to evolving market conditions."
Fourth Quarter 2016 Results
All shipment and financial figures refer to the quarter ended December 31, 2016, unless otherwise specified. All "year over year" or "y/y" comparisons are against the quarter ended December 31, 2015. All "sequential" comparisons are against the quarter ended September 30, 2016.
Total shipments were 1,416.2MW, in line with our previously announced guidance. External shipments of 1,411.9MW increased 5.5% year over year and 13.8% sequentially.