JA Solar Holdings Co, Ltd JASO announced 353.7 percent jump in net income for the first quarter driven by 44.4 percent increase in revenue on strong shipments.
JA Solar reported net income of RMB 158.0 million or $24.5 million, up from RMB 35.0 million or $5.4 million in the first quarter of 2015. The profit in USD terms represented 353.7 percent growth. Its earnings per ADS also advanced sharply to $0.43 from $0.09 in the year-ago quarter.
Its net revenue was RMB 3.5 billion or $538.1 million, an increase of 44.4 percent on year-over-year basis but 24.5 percent sequential drop. Street analysts expected the company to report earnings of $0.31 a share on revenue of $499.35 million.
The company's chairman and CEO, Baofang Jin, commented, "We are satisfied with our performance this quarter. We experienced the normal seasonal decline from the fourth quarter to first quarter, as expected, yet our results showed meaningful year over year growth. Revenue was up nearly 45% and non-GAAP EPS increased more than twofold."
He added, "We saw the most strength in our domestic market, a natural consequence of the accelerated pace of activity we expected in the first half of the year. Notably, we expect to connect around 250 MW of projects before June 30, supporting our momentum in our downstream project development business. Although regulatory change will slow the China market in the second half, our balanced market footprint gives us plenty of sales opportunities around the world."
Moving ahead for the second quarter, the Company expects total cell and module shipments to be in the range of 1,400-1,500 MW. This included about 100 MW of module shipments to the Company's downstream projects.
For the full year, JA Solar reiterated its prior shipment outlook of 5.2-5.5 GW, including 250 to 300 MW of module shipments to its downstream projects. Revenues will not be recognized for the modules shipped to its downstream projects as required by U.S. GAAP.
In the pre-market on Friday, the stock traded 2.2 percent higher.
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