On April 29th, JA Solar disclosed its 2023 annual report, achieving a revenue of 81.556 billion yuan, an increase of 11.74% compared to the same period last year; the net profit attributable to shareholders of the listed company was 7.039 billion yuan, an increase of 27.21% over the same period last year, reaching a historical high in both revenue and net profit. The company's various financial indicators performed outstandingly, with basic earnings per share of 2.14 yuan, a year-on-year increase of 25.15%; a net profit margin of 8.82%, an increase of 1.23% over the previous year; a gross profit margin of 18.13%, an increase of 3.35% over the previous year; and a weighted average return on assets of 22.52%. The overall profitability remains at a high level, leading the industry.
Firm Technological Path: Accelerating the Release of Advanced n-Type Capacity
Since 2023, with the rapid growth in demand for n-type photovoltaic products, P-type products are accelerating their exit from the market. According to industry statistics, the market share of P-type cells has dropped to 71% in 2023, while that of n-type cells has risen to 27%. It is expected that the market share of P-type cells will further decrease to 23% in 2024, while that of n-type cells will increase to over 70%, with TOPCon cells potentially reaching a market share of approximately 65%.
JA Solar's technological path aligns with this industry trend. In 2023, JA Solar firmly chose n-type cell technology as its future development direction. With technology and research and development as the foundation, the company increased its efforts in capacity construction. Nine major bases including Ningjin, Xingtai Development Zone, Shijiazhuang, Yangzhou, Dongtai, Qujing, and Vietnam saw 20 new projects progressing smoothly and being put into production simultaneously, continuously refreshing the "JA Solar speed" of construction. With these projects gradually put into operation, the company's n-type capacity has surged to the forefront of the industry. By the end of 2023, JA Solar's module capacity exceeded 95GW, with wafer and cell capacity accounting for approximately 90% of module capacity. At the same time, the company has a n-type cell capacity of 57GW, accounting for 67%, ranking second in the industry, effectively guaranteeing the global customer demand.
Based on the current situation of n-type capacity production and market demand, TOPCon will likely dominate the n-type shipment in the coming years. Currently, JA Solar has basically formed a 6GW photovoltaic integrated capacity at its Vietnam base, while it is constructing a 5GW high-efficiency n-type TOPCon cell, a 2GW component in the United States, and a 30GW wafer, 30GW cell, and 10GW component project in Ordos base. It is expected that these projects will be put into production successively in the second half of this year. After the production, JA Solar's capacity in wafer, cell, and module will all exceed 100GW, highlighting the advantage of scale manufacturing.
Strengthening Cost Control: Enhancing Operational Efficiency
As industry concentration rapidly increases, driving the gradual increase in the matching rate of various links, the integration rate of components determines the cost, and integration is the future trend. From the perspective of 2023 production capacity, JA Solar has achieved a 90% integration rate, making it one of the enterprises with the highest integration degree in the industry. According to JA Solar's latest capacity planning for 2024, the capacity of wafers, cells, and modules in the company will all exceed 100GW, and the integration capacity matching rate will further increase.
The core of the development of the photovoltaic industry is "cost reduction and efficiency increase," and technological progress is the most important means. In this regard, JA Solar actively introduces new technologies to achieve cost reduction, reducing silver consumption through various technologies such as PERC technology, new printing technology, silver-plated copper paste, electroplated copper, and exploring and applying silicon wafer thinning and wire thinning, silver paste technology updates and iterations, and domestic substitution to achieve cost reduction.
The photovoltaic industry is influenced by various factors such as market demand, technological iteration, policy adjustments, and industry competition. The realization degree and speed of these factors are uncertain, and the fundamental solution to current industry problems still requires internal self-adjustment and optimization of market mechanisms.
However, it can be predicted that during the industry adjustment period, enterprises with core technology and market competitiveness will be more likely to overcome difficulties. Through intensive production and capacity ramp-up, with the continuous expansion of n-type capacity and the continuous accumulation of customers, in the future, the commercialization process of JA Solar's n-type will accelerate, thereby driving the continuous increase in the proportion of shipments in 2024 and further expanding its market share in the n-type market. Even without engaging in low-price competition, with its advanced capacity ratio, cost reduction and efficiency enhancement, and cost control advantages, it can achieve economies of scale, thereby realizing a virtuous cycle of profitability.
