JA Solar revenue up 6.5% in 2Q 2014

JA Solar

JA Solar has earned net revenue of $390.5 million in the second quarter of 2014, an increase of 6.5 percent sequentially, and 52.9 percent year-over-year.

Revenue growth was driven by the ongoing shift in sales to module, as well as penetration of our key geographies, most notably, China and Japan, said Jian Xie, president, JA Solar.

JA Solar

During the second quarter, the company shipped 681.8 megawatts of solar power products, representing an increase of 47 percent year-over-year and 6.8 percent sequentially.

The module total represented 65 percent of total volume, up from approximately 55 percent in the second quarter of 2013, and 61 percent from the fourth quarter of 2014.

Module shipments grew 14.9 percent sequentially and 75.6 percent year-over-year.

Shipments to Japan were 26.5 percent of total volume, while that to China was 25.9 percent, and the rest of Asia Pacific was 20.6 percent. Shipments to Europe were 13.9 percent versus 15 percent in Q1, while those to North America surged to 11.2 percent from 4.1 percent in the last quarter.

“Despite the trade difficulties in the U.S. market, we remain committed to serve our clients and the business partners there and are working diligently to establish a sustainable long-term supply arrangement for the region,” said Xie.

“The U.S. market remains one of the most robust in the world, and we intend to actively participate in this market in order to retain our position among the leading companies in our industry,” Xie added.

Gross profit was $59.3 million, which translates into a gross margin of 15.2 percent that compares to 16.7 percent in Q1 of 2014, and 8.1 percent in the year earlier quarter.

The sequential decline in margin was primarily due to a higher percentage of module shipments to China, where module ASP declined slightly, and adjustment of minimum import price in Europe. The company experienced some margin pressure mainly due to slight decline in ASPs in China, and the changing MIP in Europe.

In the second half of the year, the company expects the demand to improve in China.  The company is working with a number of local partners to originate new projects, including some government bidding projects.

For the full year, the company is raising its shipment guidance from 2.9 gigawatts to 3.1 gigawatts from the previous 2.7 gigawatts to 2.9 gigawatts.

For the third quarter, the company’s outlook for volume is in the range of 730 megawatts to 760 megawatts.

Rajani Baburajan

[email protected]