The third quarter results for Chinese solar systems manufacturer JA Solar have revealed that the company enjoyed a 55.6% increase in module shipments when compared to Q2, and a 127.4% increase on Q3 2013.
Overall, JA Solar shipped 693.5 MW of modules in the third quarter, with total shipments reaching 785.4 MW. This figure was above the high end figure of 760 MW expected in the companys previously announced guidance , a performance JA Solar CEO and chairman Baofang Jin attributed to the companys robust growth in sales in Japan and China.
"JA Solars strong results in the third quarter are a result of our strategic shift from cells to modules starting to come to fruition," said Jin. "While we remain a leader in cell technology and cell manufacturing, higher margin module sales has become one of the key results drivers in JA Solar," he added, revealing that the company’s capacity is "fully booked" for the fourth quarter.
Net revenue for the third quarter reached RMB 3 billion ($492.2 million), which represented an annual increase of 71.8% and a quarter-on-quarter increase of 24.7%. This performance generated a gross margin of 15% and an operating profit of $30.9 million for the quarter. In 2013, Q3 operating profit was just $5.2 million.
Company guidance into Q4 suggests that JA Solar will ship cells and modules in the range of 850 MW to 900 MW, ending the year with shipment volumes in excess of 3.1 GW.
"We are confident in our guidance for the whole year, as well as our ability to sustain our current margin structure into Q4," concluded Jin. "We remain committed to tight expense control and are optimistic about our growth penetration of the downstream project business."