While many of its peers bettered their Q1 results, but fell short of Q2 2010s, the Chinese photovoltaic module manufacturer has achieved quite the opposite. The sequential decrease was attributed to the "challenging" European market. Nevertheless, it remains confident going forward.
In terms of Q2 2011 shipments, JA Solar increased volumes by 28.9 percent from 311 megawatts (MW) in Q2 2010 to 401 MW. However, this figure fell slightly short of Q1 2011s shipment success of 451 MW.
These results have led the manufacturer to estimate that Q3 photovoltaic cell and module shipments will be in the range of between 450 MW and 470 MW, while full year shipments are now expected to be hit around 1.8 gigawatts (GW), down from the originally predicted 2.2 GW.
Remaining upbeat, Peng Fang, CEO, commented, "In recent weeks, we have seen signs of market recovery with both orders and volume shipments increasing across our diverse customer base."
JA Solars revenue, meanwhile, fell from RMB 3.6 billion ($563.7 million) in Q1 2011 to RMB 2.7 billion ($413.0 million) in Q2 2011. It did show a slight year-on-year increase, however, up from RMB 2.4 billion ($368.3 million) in Q2 2010.
A gross loss of RMB 72 million ($11.1 million) was recorded in Q2 2011, significantly down from Q1, which achieved a gross profit of RMB 630.3 million ($97.5 million) and Q2 2010, which reaped a profit of RMB 551.2 million ($85.3 million).
Q2 gross margin was also negative, having achieved just 2.7 percent, compared with 17.3 percent in Q1 2011 and 23.2 percent in Q2 2010.
Operating expenses additionally impacted on JA Solars balance sheets, having risen from RMB 85 million ($13.1 million) in Q1 2011 to hit RMB 130 million ($20.1 million). They were, however, down on Q2 2010, which saw operating expenses of RMB 188.3 million ($29.1 million).
Compared to Q1 2011, which saw an operating income of RMB 545.4 million ($84.4 million) and Q2 2010, which reaped RMB 363 million ($56.2 million), Q2 2011, saw an operating loss of RMB 202 million ($31.3 million).
Fang continued, "Our second quarter results reflect the market disruption that resulted from generally lower than anticipated installation levels in Germany and recent policy changes in Italy.
"Despite that challenging environment in the European market, demand for our high-efficiency, low-cost products remained healthy and ensured that we met our shipment goals. However, our gross margin and bottom line have been impacted by worse than anticipated market conditions and inventory provisions."
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