JA Solar's shipments exceed Q1 target; narrows loss

JA Solar Holdings Co. Ltd announced today its unaudited first quarter financial results. In the first quarter of 2013, the company managed to increase its gross margin to 6.0%, compared to a negative 4.6% in Q4 of last year. In the first three months of 2012 it had posted a 2.1% gross margin.

With respect to net revenues, in the first quarter of this year it registered RMB 1.68 billion ($270 million), almost the same amount it had in Q4 of 2012 with RMB 1.67 billion. In Q1 of 2012, it also had recorded a similar figure at RMB 1.6 billion.

Overall, shipments in the first quarter of 2013 were 442.7 MW, above the company’s previously provided guidance of 410 MW to 430 MW. Although, this represents an 11.5% decrease from 500 MW in Q4 of 2012, it means an increase of 20.9% from 366 MW in Q1 of last year.

Baofang Jin, executive chairman and CEO of JA Solar said: "We performed especially well in Japan, a high-ASP market, which accounted for a record 38% of our module shipments in the quarter, while module sales to China declined from last quarter due to seasonality and our shift in focus to markets with more attractive margins. We also made further inroads into emerging markets, including in the Asia Pacific, the Middle East, and Africa."

Looking at financials, the Chinese module manufacturer narrowed its net loss to $33.26 million (RMB 206.55) million, compared to $94.84 million (RMB 582.13) in the fourth quarter of 2012. But in Q1 of 2012 it had recorded $ 40.87 (RMB 250.9 million).

Meanwhile, Q1 of 2013 loss per diluted ADS was RMB 5.29 ($0.85), compared with loss per diluted ADS of RMB 15.06 ($2.42) in Q4 of last year.

In terms of operating loss, JA Solar made a significant improvement in Q1 of this year, as it posted RMB 85.2 million ($13.7 million). In the fourth quarter of 2012, it had a hefty operating loss of RMB 493.9 million ($79.5 million).

In other news, on April 17 JA Solar announced it had repaid $119 million, in principal and accrued interest, of its 4.5% convertible bond that was due on May 15.