JA Solar Q2 Profit Rises On Strong Revenue Growth; Backs FY16 Shipment View

(RTTNews) - Chinese photovoltaic company JA Solar Holdings Co. Ltd. (JASO) Wednesday said its second-quarter net income was 164.1 million Chinese yuan or $24.7 million, higher than last year's 136.0 million yuan or $20.5 million. Earnings per diluted ADS were 2.87 yuan or $0.43, compared to 2.26 yuan or $0.34 a year ago.

Adjusted earnings per ADS were 2.04 yuan or $0.31, compared to 1.67 yuan or $0.25 in the prior year ago.

Gross margin was 15.3%, a decrease of 110 basis points from last year.

Net revenues climbed 52 percent to 4.11 billion yuan or $619.0 million from last year's 2.71 billion yuan last year.

As expected, China was the strongest market in the quarter, driven by accelerated activity ahead of subsidy reductions that occurred this summer, the company said.

Total shipments were 1,380.8 MW, consisting of 1,229.3 MW of modules and cellsto external customers, and 151.5 MW of modules to the Company's own downstream projects. External shipments were up 55.5%.

Looking ahead, the company expects third-quarter total cell and module shipments to be in the range of 1,200 to 1,300 megawatts or MW. For the full year, the Company reiterated its prior shipment guidance of 5.2 to 5.5 GW, including 250 to 300 MW of module shipments to the Company's downstream projects.

Revenues will not be recognized for the modules shipped to the Company's downstream projects as required by U.S. GAAP, the company said.