JA Solar has announced its unaudited financial results for its fourth quarter and fiscal year ended December 31, 2014. The significantly increased PV module shipment in both 4Q14 and FY2014 led to a considerable financial growth.

In 4Q14, China’s government-directed demand triggered a shipment growth of 43% y-o-y and a 21% sequentially. Moreover, shipment in FY 2014 rapidly grew 47.6% from FY 2013. The growth makes JA Solar one of the fastest-growing PV manufacturers in the world.

"These strong results capped a year of achievement for JA, in which we solidified our position as a leader within the top tier of solar equipment producers. We expect our revenue growth rate of 57% to be among the highest in the industry. Our strategic decision to shift our product mix to more profitable modules and better geographies paid off, with gross profit more than doubling as our gross margin expanded by 500 basis points. We continued to invest heavily in R&D, increasing this expense by 58%, but held other operating expenses under control, resulting in solid operating and net margins. Our intention in 2015 is to sustain this track record of rapid growth and high profitability,” pointed out Mr. Baofang Jin, chairman and CEO of JA Solar.

Fourth Quarter 2014 Highlights

• Total shipments were 952.7 MW, increases of +43.2% y/y and +21.3% sequentially
• Shipments of modules and module tolling were 879.6 MW, increases of +142.1% y/y and +26.8% sequentially
• Shipments of cells and cell tolling were 73.1 MW, decreases of 75.8% y/y and 20.5% sequentially
• Net revenue was RMB 3.6 billion ($576.4 million), an increase of +65.3% y/y and +18.4% sequentially
• Gross margin was 15.5%, remained unchanged y/y and an increase of 50 basis points sequentially
• Operating profit was RMB 222.4 million ($35.8 million), compared to RMB 58.9 million ($9.5 million) in the fourth quarter of 2013, and RMB 189.6 million ($30.6 million) in the third quarter of 2014
• Net income was RMB 166.1 million ($26.8 million), compared to RMB 139.5 million ($22.5 million) in the fourth quarter of 2013, and RMB 155.4 million ($25.0 million) in the third quarter of 2014
• Earnings per diluted ADS were RMB 2.55 ($0.41), compared to RMB 1.92 ($0.31) in the fourth quarter of 2013, and remained unchanged from the third quarter of 2014
• Cash and cash equivalents were RMB 2.2 billion ($347.3 million), an increase of RMB 439.7million ($70.9 million) during the quarter
• Operating cash flow was positive RMB 158.5 million ($25.5 million), compared to negative RMB 184.1 million ($30.0 million) in the third quarter of 2014
• Non-GAAP earnings1 per diluted ADS were RMB 1.74 ($0.28), compared to RMB 0.94 ($0.15) in the fourth quarter of 2013, and RMB 1.30 ($0.21) in the third quarter of 2014

Fiscal Year 2014 Highlights

• Shipments grew to approximately 3.1 GW, consisting of 2,406.8 MW of modules and module tolling and 651.1 MW of cells and cell tolling, an increase of 47.6% from 2.1 GW in fiscal year 2013
• Net revenue was RMB 11.3 billion ($1.8 billion), compared to net revenue of RMB 7.2 billion ($1.2 billion) in fiscal year 2013
• Gross margin was 15.6%, compared to 10.6% in fiscal year 2013
• Operating profit was RMB 662.5 million ($106.8 million), compared to an operating loss of RMB 91.3 million ($14.7 million) in fiscal year 2013
• Net income was RMB 446.7 million ($72.0 million), compared to a net loss of RMB 426.5 million ($68.7 million) in fiscal year 2013
• Earnings per diluted ADS was RMB 6.88 ($1.11), compared to a loss per diluted ADS of RMB 11.76 ($1.89) in fiscal year 2013
• Cash and cash equivalents at the end of the fiscal year were RMB 2.2 billion ($347.3 million), compared with RMB 2.1 billion ($341.6 million) at the end of fiscal year 2013
• Operating cash flow was positive RMB 526.2 million ($84.8 million), compared to operating cash flow of positive RMB 1.5 billion ($236.1 million) in fiscal year 2013
• Non-GAAP net income attributable to the Company's ordinary shareholders was RMB 349.8 million ($56.4 million), compared to a non-GAAP net loss attributable to the Company's ordinary shareholders of RMB 378.2 million ($61.0 million) in fiscal year 2013
• Non-GAAP earnings per diluted ADS in fiscal year 2014 was RMB 5.45 ($0.88), compared to a non-GAAP loss per diluted ADS of RMB 9.39 ($1.51) in fiscal year 2013