JA Solar published its financial results for the second quarter of 2015. The results showed that the total shipment and shipment of modules were increased, yet the shipment of cells dropped sequentially and annually. Overall, the financial performance was better than in 1Q15 and in 2Q13.
The company is making progress on the establishment of its cell manufacturing plant in Malaysia, said Mr. Baofang Jin, chairman and CEO of JA Solar.
According to the report, the net revenue was RMB 2.7 billion ($436.8 million), an increase of 11.8% y/y and 12.7% sequentially. Growth was mainly driven by strong shipments to key markets such as China. Gross profit was of RMB 444.3 million ($71.7 million) increased 20.8% y/y and 14.9% sequentially. Gross margin was 16.4%, which compares to 15.2% in the year-ago quarter, and 16.1% in the first quarter of 2015. The sequential increase in gross margin was primarily due to a higher percentage of revenue from downstream projects and continued cost reduction, which offset a slight decline in ASP.
Total operating expenses of RMB 288.1 million ($46.5 million) were 10.6% of revenue. As a percentage of revenue, operating expenses were 11.5% in the year-ago quarter, and 9.9% in the first quarter of 2015.
Operating profit was RMB 156.1 million ($25.2 million), compared to RMB 89.7 million ($14.5 million) in the year-ago quarter, and RMB 149.6 million ($24.1 million) in the first quarter of 2015.
Interest expense was RMB 58.6 million ($9.4 million), compared to RMB 54.8 million ($8.8 million) in the year-ago quarter, and RMB 66.6 million ($10.7 million) in the first quarter of 2015.
Second Quarter 2015 Highlights
- Total shipments were 790.8 megawatts ("MW"), an increase of 16.0% y/y and 16.0% sequentially
- Shipments of modules and module tolling were 717.4 MW, an increase of 60.9% y/y and 22.8% sequentially
- Shipments of cells and cell tolling were 73.4 MW, a decrease of 68.9% y/y and 24.7% sequentially
- Net income was RMB 136.0 million ($21.9 million), compared to RMB 40.1 million ($6.5 million) in the second quarter of 2014, and RMB 35.0 million ($5.6 million) in the first quarter of 2015
- Earnings per diluted ADS were RMB 2.26 ($0.36), compared to RMB 0.59 ($0.10) in the second quarter of 2014, and RMB 0.59 ($0.10) in the first quarter of 2015
- Cash and cash equivalents were RMB 1.7 billion ($282.0 million), a decrease of RMB 149.6 million ($24.1 million) during the quarter
- Non-GAAP earnings1 per diluted ADS were RMB 1.67 ($0.27), compared to RMB 0.87 ($0.14) in the second quarter of 2014, and RMB 0.82 ($0.13) in the first quarter of 2015
