JA Solar Reports Third Quarter 2008 Results
HEBEI, Nov. 12 /PRNewswire-AsiaNet/ --
Third Quarter 2008 Highlights
- Revenue increased 149 percent to RMB 2.12 billion or $312.3 million,
compared with RMB 850.0 million or $125.2 million in Q3 2007
- Total gross profit increased 130 percent to RMB 458.1 million or $67.5
million, compared with RMB 199.3 million or $29.4 million in Q3 2007
- Gross margin of 21.6 percent, compared with 23.45 percent in Q3 2007
and 23.3 percent in Q2 2008
- Income from operations increased 154 percent to RMB 433.3 million
or $63.8 million, compared with RMB 170.4 million or $25.1 million in
Q3 2007
- GAAP net loss of RMB 0.92 or a loss of $0.13 per basic ADS and fully
diluted ADS of RMB 2.47 or $0.36, compared with basic ADS net income of
RMB 1.20 or $0.18 and fully diluted ADS of RMB 1.18 or $0.17 in Q3 2007
- Non-GAAP net income of RMB 1.75 or $0.26 per basic ADS and fully
diluted ADS of RMB 1.61 or $0.24, adjusted for stock-based
compensation, change in fair value of certain non-cash derivative gain
and loss and impairment loss on available-for-sale securities
(Please refer to reconciliation on page 9)
- Shipped 99.1 MW of solar cells during the quarter, compared with 43.8
MW in Q3 2007
- Cash and cash equivalents were RMB 1.69 billion or $248.8 million.
JA Solar Holdings Co., Ltd., (Nasdaq: JASO) a fast-growing manufacturer of
high-performance solar cells, today reported financial results for its third
quarter ended Sept. 30, 2008.
"We are pleased with our third quarter results, in which revenue, gross
profit and income from operations increased sequentially. We shipped 99.1 MW
of solar cells, more than twice the amount we shipped in the same quarter a
year ago," said Samuel Yang, chief executive officer of JA Solar.
"JA Solar will remain a strong industry player, but we realize we are not
immune from the worldwide financial situation. We will be conservative as we
ramp production, but we will be aggressive in securing strategic partnerships
and in enhancing our customer and supplier relationships to extend our
industry leadership.
"Looking ahead, we expect that our tolling business, which carries with it
a lower ASP, will represent an increasing portion of our revenue in the coming
quarters. Our fourth quarter 2008 and full year 2009 guidance reflect the
assumption of the increased tolling revenue.
"We are carefully managing the company for continued profitability in
2009. With our low cost basis, strong support from our suppliers, and ongoing
success in broadening and diversifying our customer base, we believe we can
achieve gross margins of at least 16 percent for the full year of 2009, with
upside likely as we solidify and strengthen our operations during these
uncertain times. JA Solar will continue to prosper, even if the current
market conditions remain for an extended period. We will be able to capitalize
on opportunities that weaker companies leave behind, and extend our market
share and profitability even further," he said.
Third Quarter 2008 Results
Summary of megawatts produced and shipped (includes cell processing
service)
Three months ended
Megawatts September 30, 2007 June 30, 2008 September 30, 2008
Produced 44.6 MW 66.1 MW 102.9 MW
Shipped 43.8 MW 65.7 MW 99.1 MW
Cost per watt
excluding wafer
cost US$ 0.224/Wp US$ 0.205/Wp US$ 0.234/Wp
Total revenue in the third quarter of 2008 was RMB 2.12 billion or $312.3
million, an increase of 149.5 percent from third quarter of 2007 revenue of
RMB 850.0 million or $125.2 million, and an increase of 71.5 percent from the
second quarter of 2008 revenue of RMB 1.24 billion or $182.1 million.
Total gross profit in the third quarter of 2008 was RMB 458.1 million or
$67.5 million compared with RMB 199.3 million or $29.4 million in the third
quarter 2007, and RMB 288.4 million or $42.5 million in the second quarter
2008. Gross margin was 21.6 percent in the third quarter 2008, compared with
23.45 percent in the third quarter 2007, and 23.3 percent in the second
quarter 2008.
Interest expense in the third quarter of 2008 was RMB 63.5 million or $9.4
million, compared with RMB 1.3 million or $0.19 million in the third quarter
of 2007. This compares with RMB 32.9 million or $4.9 million in the second
quarter of 2008.
Net loss available to ordinary shareholders in the third quarter 2008 was
RMB 142.8 million or $21.0 million compared with net profit of RMB 165.9
million or $ 24.4 million in the third quarter 2007, and RMB 318.6 million or
$46.9 million in the second quarter 2008.
Basic and diluted loss per ADS was RMB 0.92 or $0.13 and RMB 2.47 or
$0.36, respectively. This compares with basic and diluted net income per ADS
of RMB 1.20 or $ 0.18 and RMB 1.18 or $ 0.17, respectively, in the same period
of 2007; and RMB 2.06 or $0.30 and RMB -0.04 or $-0.01, respectively, in the
second quarter 2008.
The bankruptcy of Lehman Brothers and its affiliates had a material impact
on our third quarter net income and EPS. Firstly, the company recorded a $100
million other than temporary impairment adjustment against short term
investments purchased from Lehman Brothers Treasury Co. B.V. ("Lehman
Treasury") due to its bankruptcy and related default on repayment of this
investment at maturity of 9th October 2008. Further in connection with the
senior convertible notes offering, JA Solar entered into a 6.56 million share
lending agreement with Lehman Brothers International (Europe) ("Lehman
Europe"). Under the share lending agreement with Lehman Europe, the shares
must be returned to the Company no later than May 15, 2013, the maturity date
of the senior notes. Until that time, the shares are considered to be issued
and outstanding for corporate law purposes. Under current accounting rules,
since there was an obligation of Lehman Europe to return the borrowed shares,
such shares would have been excluded from the company's per share calculation.
However, due to the recent bankruptcy filing by Lehman Europe, the Company
will now include these shares in its per share calculation on a weighted
average basis. Approximately 1.1 million shares were included in the per share
computation for the third quarter related to the Lehman Europe share lending
arrangement. Also in connection with the senior note offering, JA Solar
entered into a capped call transaction with Lehman Brothers OTC Derivatives
Inc. ("Lehman OTC") and the company recorded a $7.35 million loss in Q3 given
Lehman OTC bankruptcy.
The third quarter 2008 included share-based compensation expense of
RMB -18.1 million or -$2.7 million, including a reversal of RMB 52.6 million
in previously recognized stock-based compensation for the resignation of COO
Dr. Sun and other employees in the third quarter of 2008.
In the third quarter 2008, on a non-GAAP basis, adjusted to exclude
stock-based compensation, changes in fair value of the embedded derivatives
underlying the senior convertible notes and capped call options, and
impairment loss on available-for-sale securities, non-GAAP basic and diluted
net income per ADS were RMB 1.75 or $0.26 and RMB 1.61 or $0.24, respectively.
This compares with non-GAAP basic and diluted net income per ADS of RMB 1.31
or $0.19 and RMB 1.29 or $0.19, respectively, in the same period of 2007; and
RMB 1.04 or $0.15 and RMB 0.99 or $0.15, respectively, in the second quarter
2008. Please refer to Note 3 set forth at the end of this release.
Third Quarter 2008 Balance Sheet
At Sept. 30, 2008, JA Solar had cash and cash equivalents of RMB 1.69
billion or $248.8 million, compared with RMB 794.1 million or $117.0 million
at the end of the third quarter 2007, and RMB 3.57 billion or $525.1 million
at the end of the second quarter 2008.
Capital expenditures were RMB 142.5 million or $21.0 million in the third
quarter 2008, compared with RMB 144.3 million or $21.2 million in the third
quarter 2007, and RMB 264.1 million or $38.9 million in the second quarter
2008. Depreciation and amortization expenses in the third quarter 2008 were
RMB 23.7 million or $3.5 million, as compared with RMB 10.7 million or $1.6
million in the third quarter 2007, and RMB 16.4 million or $2.4 million in the
second quarter 2008.
"In the third quarter, operating profit more than doubled both
sequentially and year over year, demonstrating our ongoing strong financial
performance and controls," said Daniel Lui, chief financial officer of JA
Solar.
"We ended the quarter with a strong cash position of RMB 1.69 billion or
$248.8 million. We believe that the combination of cash on hand with an
average operating cash flow of at least 10 percent as a percentage of revenue,
will be more than enough to finance our production ramp, including the pre-
payments to suppliers, throughout 2009," he said. "We will be cautious as we
build out new production lines, but we will continue to invest in process
improvements to enable future cost reductions. In the fourth quarter and in
2009, we continue to expect to generate net cash inflows from operations.
"Liquidity of the company is and will stay strong in the foreseeable
future. Not only do we receive strong credit support from local banks, future
minimum prepayment obligations are expected to be substantially less than the
contractual $260 million as the silicon material/wafer supplies become
abundant as a result of the global market downturn. Further, to achieve 1GW
nameplate capacity by the end of 2009, an additional investment of only RMB
850 million or $125 million would be necessary. We expect to invest
approximately RMB 210 million or $30.9 million in R&D throughout next year.
But as Samuel said, we will be cautious in our production ramps and capacity
expansion, as we wait to see how orders are flowing before we commit new
capital," he said.
The conversion of Renminbi into U.S. dollars in this release, made solely
for the convenience of the reader, is based on the noon buying rate in The
City of New York for cable transfers of Renminbi as certified for customs
purposes by the Federal Reserve Bank of New York as of Sept. 30, 2008, which
was RMB 6.7899 to $1.0000. No representation is intended to imply that the
Renminbi amounts could have been, or could be, converted, realized or settled
into U.S. dollars at that rate on Sept. 30, 2008, or at any other date. The
percentages stated in this press release are calculated based on Renminbi.
2008 Outlook
Based on current market conditions, the devaluation of the Euro and other
global financial uncertainties, the company expects revenue for the fourth
quarter to be approximately RMB 1.3 billion or $191.5 million to RMB 1.5
billion or $220.9 million. The gross margin in the fourth quarter is expected
to be between 5 and 7 percent; non-GAAP earnings per basic and diluted ADS are
expected to be approximately break-even.
JA Solar's target for total production output has been updated to 310MW
for 2008, with the nameplate annual production expected to be 600MW by the end
of this year.
2009 Outlook
The company updated 2009 guidance based on market forecasts and the
financial environment. For the full year 2009, revenue is expected to be in
the range of RMB 10.0 billion or $1.5 billion to RMB 11.6 billion or $1.7
billion. Full-year gross margins are expected to be at least 16 percent. Non-
GAAP earnings per basic ADS are expected to be at least 1.00 and diluted ADS
are expected to be $0.90.
Total production output is expected to be approximately 800MW with total
production capacity projected to exceed 1GW by the end of 2009.
Investor Conference Call / Webcast Details
A conference call has been scheduled for today, Wednesday, Nov. 12, 2008
at 8:00 am Eastern time. The call may be accessed by dialing 1.888.989.3484 or
1.517.308.9407 (international). The passcode is JA Solar. A live webcast of
the conference call will be available on the company's website at
www.jasolar.com. A replay of the call will be available beginning two hours
after the live call and will be accessible by dialing 1.800.944.1558 or
1.203.369.3871 (international). The passcode for the replay is 5276 (JASO).
About JA Solar Holdings Co., Ltd.
Based in Hebei, JA Solar Holdings Co., Ltd. is a fast-growing manufacturer
of high-performance solar cells. The company sells its products to solar
module manufacturers who assemble and integrate its solar cells into modules
and systems that convert sunlight into electricity. For more information,
Forward-looking Statement
This press release contains forward-looking statements within the meaning
of the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements can be identified by words such as
"will," "may," "expect," "anticipate," "aim," "intend," "plan," "believe,"
"estimate," "potential," "continue," and other similar statements. Statements
other than statements of historical facts in this announcement are forward-
looking statements, including but not limited to, our expectations regarding
the expansion of our manufacturing capacities, our future business
development, and our beliefs regarding our production output and production
outlook. These forward-looking statements involve known and unknown risks and
uncertainties and are based on current expectations, assumptions, estimates
and projections about the Company and the industry. Further information
regarding these and other risks is included in our registration statement on
Form F-1 and other documents filed with the Securities and Exchange
Commission. The Company undertakes no obligation to update forward-looking
statements, except as may be required by law. Although the Company believes
that the expectations expressed in these forward-looking statements are
reasonable, it cannot assure you that its expectations will turn out to be
correct, and investors are cautioned that actual results may differ materially
from the anticipated results.
About Non-GAAP Financial Measures
To supplement its consolidated financial results presented in accordance
with GAAP, JA Solar uses the following non-GAAP measures which are adjusted
from the most directly comparable GAAP results to exclude items related to
share-based compensation, change in fair value of the embedded derivatives
underlying the senior convertible notes and capped call options and impairment
loss on available-for-sale securities which arose from the company's stock
price movement. JA Solar believes that non-GAAP information is useful for
analysts and investors to evaluate JA Solar's future on-going performance
because they enable a more meaningful comparison of JA Solar's projected cash
earnings and performance with its peers and historical results from prior
periods. This information is not intended to represent funds available for JA
Solar's discretionary use and not intended to represent or to be used as a
substitute for gross profit/margin, operating expenses, operating income or
net income as measured under GAAP. This non-GAAP measure is not in accordance
with or an alternative for GAAP financial data, the non-GAAP results should be
reviewed together with the GAAP results and are not intended to serve as a
substitute for results under GAAP, and may be different from non-GAAP measures
used by other companies. For more information on this non-GAAP financial
measure, please see the tables captioned "Note 3. Reconciliation of non-GAAP
results of operations measure to the nearest comparable GAAP measures" set
forth at the end of this release and which shall be read together with the
preceding financial statements prepared under GAAP.
JA Solar Holdings Co., Ltd.
Condensed Consolidated Statements of Operations
(Unaudited)
Three months ended
September 30, June 30,
2007 2008
RMB USD RMB USD
Net revenues
Solar products
to third parties 803,948,453 118,403,578 992,414,128 146,160,345
Solar products to
related parties 4,235,069 623,731 181,649,316 26,752,871
Solar cells
processing 41,811,183 6,157,850 62,613,837 9,221,614
Total revenues 849,994,705 125,185,159 1,236,677,281 182,134,830
Cost of revenues
Solar products (639,550,780) (94,191,487) (925,093,577) (136,245,538)
Solar cells
processing (11,112,156) (1,636,571) (23,134,255) (3,407,157)
Total cost of
revenues (650,662,936) (95,828,058) (948,227,832) (139,652,695)
Gross profit 199,331,769 29,357,101 288,449,449 42,482,135
Selling, general
and administrative
expenses (27,813,372) (4,096,286) (66,587,857) (9,806,898)
Research and
development
expenses (1,109,276) (163,371) (5,545,808) (816,773)
Total operating
expenses (28,922,648) (4,259,657) (72,133,665) (10,623,671)
Income from
operations 170,409,121 25,097,444 216,315,784 31,858,464
Interest expense (1,321,305) (194,599) (32,948,109) (4,852,518)
Interest income 13,992,625 2,060,800 14,219,824 2,094,261
Foreign exchange
loss (18,952,072) (2,791,215) (35,985,949) (5,299,923)
Other income 1,735,985 255,672 151,348 22,290
Loss from sale of
investments - - (13,667,739) (2,012,951)
Change in fair value
of derivatives
(see note 1) - - 175,661,767 25,871,039
Impairment on
available-for-sale
securities - - - -
Income/ (loss)
before income
taxes 165,864,354 24,428,102 323,746,926 47,680,662
Income tax benefit/
(expense) - - (5,186,955) (763,922)
Net income/ (loss)
available to
ordinary
shareholders 165,864,354 24,428,102 318,559,971 46,916,740
Net income/ (loss)
per ordinary
shares (see note 2)
Basic 1.20 0.18 2.06 0.30
Diluted 1.18 0.17 (0.04) (0.01)
Weighted average
number of ordinary
shares outstanding:
Basic 138,270,000 138,270,000 154,519,808 154,519,808
Diluted 140,095,013 140,095,013 163,688,037 163,688,037
Net income/ (loss)
per ADS (see note 2)
Basic 1.20 0.18 2.06 0.30
Diluted 1.18 0.17 (0.04) (0.01)
Weighted average
number of ADS
outstanding:
Basic 138,270,000 138,270,000 154,519,808 154,519,808
Diluted 140,095,013 140,095,013 163,688,037 163,688,037
September 30,
2008
RMB USD
Net revenues
Solar products to third parties 1,864,733,731 274,633,460
Solar products to related parties 214,150,867 31,539,620
Solar cells processing 41,683,479 6,139,042
Total revenues 2,120,568,077 312,312,122
Cost of revenues
Solar products (1,647,376,134) (242,621,561)
Solar cells processing (15,129,810) (2,228,282)
Total cost of revenues (1,662,505,944) (244,849,843)
Gross profit 458,062,133 67,462,279
Selling, general and administrative
expenses (17,858,354) (2,630,135)
Research and development expenses (6,914,040) (1,018,283)
Total operating expenses (24,772,394) (3,648,418)
Income from operations 433,289,739 63,813,861
Interest expense (63,490,476) (9,350,723)
Interest income 13,811,446 2,034,116
Foreign exchange loss (40,772,184) (6,004,828)
Other income 51,814 7,631
Loss from sale of investments (8,319,520) (1,225,279)
Change in fair value of derivatives
(see note 1) 229,051,739 33,734,185
Impairment on available-for-sale
securities (686,320,000) (101,079,545)
Income/ (loss) before income taxes (122,697,442) (18,070,582)
Income tax benefit/ (expense) (20,055,640) (2,953,746)
Net income/ (loss) available to
ordinary shareholders (142,753,082) (21,024,328)
Net income/ (loss) per ordinary
shares (see note 2)
Basic (0.92) (0.13)
Diluted (2.47) (0.36)
Weighted average number of ordinary
shares outstanding:
Basic 155,832,515 155,832,515
Diluted 169,896,784 169,896,784
Net income/ (loss) per ADS (see note 2)
Basic (0.92) (0.13)
Diluted (2.47) (0.36)
Weighted average number of ADS
outstanding:
Basic 155,832,515 155,832,515
Diluted 169,896,784 169,896,784
Each ADS represents 1 ordinary share
JA Solar Holdings Co., Ltd.
Condensed Consolidated Balance Sheets
December 31, 2007 September 30, 2008
RMB USD RMB USD
(Audited) (Conversion) (Unaudited) (Conversion)
ASSETS
Current assets
Cash and cash
equivalents 1,145,032,918 168,637,670 1,688,999,291 248,751,718
Available-for-sale
securities 803,121,383 118,281,769 542,341,000 79,874,667
Accounts receivables
from third party
customers 28,819,554 4,244,474 378,814,765 55,790,921
Accounts receivables
from related party
customers 24,730,689 3,642,276 78,015,000 11,489,860
Inventories 157,334,310 23,171,815 359,077,652 52,884,085
Advances to related
party suppliers 389,871,684 57,419,356 529,667,967 78,008,213
Advances to third
party suppliers 898,722,659 132,361,693 1,168,978,017 172,164,246
Other current
assets 42,315,074 6,232,061 35,216,349 5,186,578
Deferred tax assets 1,214,246 178,831 4,199,437 618,483
Total current
assets 3,491,162,517 514,169,945 4,785,309,478 704,768,771
Property and
equipment, net 532,011,999 78,353,437 1,095,803,851 161,387,333
Intangible asset,
net 6,687,677 984,945 6,079,077 895,312
Deferred tax assets 4,355,369 641,448 11,336,087 1,669,551
Advances to third
party suppliers 536,332,174 78,989,701 1,146,765,923 168,892,904
Derivative assets-
capped call
options - - 25,058,249 3,690,518
Deferred issuance
cost - - 75,263,349 11,084,603
Total assets 4,570,549,736 673,139,477 7,145,616,014 1,052,388,992
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Current liabilities:
Short-term bank
borrowings 200,000,000 29,455,515 - -
Accounts payable
to third parties 10,119,234 1,490,336 44,884,001 6,610,406
Tax payables 342,025 50,373 27,460,168 4,044,267
Advances from third
parties customers 70,285,896 10,351,536 68,796,539 10,132,187
Other payables to
third parties 16,841,500 2,480,375 156,131,990 22,994,741
Payroll and welfare
payable 6,364,403 937,334 17,165,811 2,528,139
Accrued expenses 15,279,750 2,250,365 54,497,616 8,026,277
Amounts due to related
parties 113,890,220 16,773,475 14,633,653 2,155,209
Interest payable - - 46,115,325 6,791,753
Total current
liabilities 433,123,028 63,789,309 429,685,103 63,282,979
Accrued warranty cost 929,170 136,846 2,963,648 436,479
Convertible bonds
payable - - 1,868,383,037 275,170,921
Embedded derivatives - - 273,822,928 40,327,977
Total liabilities 434,052,198 63,926,155 2,574,854,716 379,218,356
Commitment and
Contingencies - - - -
Shareholders' equity: - - - -
Ordinary shares(US$0.0001
par value; 493,480,000
shares authorized
154,058,000 and
167,888,020 shares
issued and outstanding
as of December 31, 2007
and September 30, 2008) 123,307 18,160 123,799 18,233
Additional paid-in
capital 3,655,194,120 538,328,123 3,753,621,468 552,824,264
Statutory reserve 71,617,912 10,547,712 71,617,912 10,547,712
Accumulated
earnings 417,203,191 61,444,674 747,477,654 110,086,696
Accumulated other
comprehensive
income (7,640,992) (1,125,347) (2,079,535) (306,269)
Total shareholders'
equity 4,136,497,538 609,213,322 4,570,761,298 673,170,636
Total liabilities
and shareholders'
equity 4,570,549,736 673,139,477 7,145,616,014 1,052,388,992
Note 1. Change in fair value of derivatives
Three months Three months Three months
ended, ended, ended,
September September June 30,
30, 2007 30, 2007 2008
In RMB In USD In RMB
Change in fair value
of embedded foreign
currency derivatives - - (25,845,420)
Change in fair value of
capped call options - - (125,254,486)
Change in fair value of
embedded derivatives
underlying senior convertible
notes - - 326,761,673
Total - - 175,661,767
Three months Three months Three months
ended, ended, ended,
June 30, September September
2008 30, 2008 30, 2008
In USD In RMB In USD
Change in fair value of
embedded foreign currency
derivatives (3,806,451) (24,128,575) (3,553,598)
Change in fair value of
capped call options (18,447,176) (75,774,466) (11,159,880)
Change in fair value of
embedded derivatives
underlying senior
convertible notes 48,124,666 328,954,780 48,447,663
Total 25,871,039 229,051,739 33,734,185
Note 2. Net income per ADS on a fully diluted basis
Three months Three months Three months
ended, ended, ended,
September September June 30,
30, 2007 30, 2007 2008
In RMB In USD In RMB
Net income/(loss), Basic 165,864,354 24,428,100 318,559,971
Change in fair value of
embedded derivatives
underlying senior
convertible notes - - (326,761,672)
Foreign exchange gain
on senior convertible
notes - - (31,721,331)
Accretion of non-cash interest
charge on senior
convertible notes - - 16,541,320
Amortization of deferred issuance
cost in relation to senior
convertible notes - - 973,815
4.5% interest expenses
of senior convertible notes - - 15,432,975
Net income, Diluted 165,864,354 24,428,100 (6,974,922)
Weighted average number of
ordinary shares and ADS
outstanding:
Basic 138,270,000 138,270,000 154,519,808
Diluted 140,095,013 140,095,013 163,688,037
Net income per ordinary
shares and per ADS:
Basic 1.20 0.18 2.06
Diluted 1.18 0.17 (0.04)
Three months Three months Three months
ended, ended, ended,
June 30, September September
2008 30, 2008 30, 2008
In USD In RMB In USD
Net income/(loss), Basic 46,916,740 (142,753,082) (21,024,328)
Change in fair value of
embedded derivatives
underlying senior
convertible notes (48,124,666) (328,954,780) (48,447,663)
Foreign exchange gain on
senior convertible notes (4,671,841) (10,983,426) (1,617,612)
Accretion of non-cash
interest charge on senior
convertible notes 2,436,165 32,885,854 4,843,349
Amortization of deferred
issuance cost in relation
to senior convertible notes 143,421 1,936,045 285,136
4.5% interest expenses of
senior convertible notes 2,272,931 28,668,577 4,222,238
Net income, Diluted (1,027,250) (419,200,812) (61,738,880)
Weighted average number of
ordinary shares and ADS
outstanding:
Basic 154,519,808 155,832,515 155,832,515
Diluted 163,688,037 169,896,784 169,896,784
Net income per ordinary
shares and per ADS:
Basic 0.30 (0.92) (0.13)
Diluted (0.01) (2.47) (0.36)
Weighted average ordinary shares and ADS excludes 6,562,760 ADSs borrowed
by affiliates of the joint book-running managers in connection with the
May 2008 senior convertible notes offering. The Company believes that
under U.S. GAAP the ADSs borrowed are not to be considered outstanding for
the purpose of computing and reporting our net income per ordinary share
and per ADS.
Note 3. Reconciliation of non-GAAP results of operations measures to the
nearest comparable GAAP measures
Three months Three months Three months
ended, ended, ended,
September September June 30,
30, 2007 30, 2007 2008
In RMB In USD In RMB
GAAP Net Income/(loss) 165,864,354 24,428,100 318,559,971
Stock based compensation 15,060,822 2,218,121 44,268,934
Change in fair value of
capped call options - - 125,254,486
Change in fair value of
embedded derivatives
underlying senior convertible
notes - - (326,761,672)
Impairment loss on
available-for-sale securities - - -
Non-GAAP Net income 180,925,176 26,646,221 161,321,719
Non-GAAP Net income Basic 180,925,176 26,646,221 161,321,719
Foreign exchange gain on
senior convertible notes - - (31,721,331)
Amortization of deferred
issuance cost - - 973,815
Accretion on senior
convertible notes - - 16,541,320
4.5% interest expenses of
senior convertible notes - - 15,432,975
Non-GAAP Net income
Diluted 180,925,176 26,646,221 162,548,498
Weighted average number of
ordinary shares and ADS
outstanding:
Basic 138,270,000 138,270,000 154,519,808
Diluted 140,095,013 140,095,013 163,688,037
Non-GAAP Net income per
ordinary shares and per ADS:
Basic 1.31 0.19 1.04
Diluted 1.29 0.19 0.99
Three months Three months Three months
ended, ended, ended,
June 30, September September
2008 30, 2008 30, 2008
In USD In RMB In USD
GAAP Net Income/(loss) 46,916,740 (142,753,082) (21,024,328)
Stock based compensation 6,519,821 (17,244,925) (2,539,791)
Change in fair value of
capped call options 18,447,176 75,774,466 11,159,880
Change in fair value of
embedded derivatives
underlying senior
convertible notes (48,124,666) (328,954,780) (48,447,663)
Impairment loss on
available-for-sale
securities - 686,320,000 101,079,545
Non-GAAP Net income 23,759,071 273,141,679 40,227,643
Non-GAAP Net income Basic 23,759,071 273,141,679 40,227,643
Foreign exchange gain on
senior convertible notes (4,671,841) (10,983,426) (1,617,612)
Amortization of deferred
issuance cost 143,421 1,936,045 285,136
Accretion on senior
convertible notes 2,436,165 32,885,854 4,843,349
4.5% interest expenses of
senior convertible notes 2,272,931 28,668,577 4,222,238
Non-GAAP Net income Diluted 23,939,747 273,141,679 40,227,643
Weighted average number of
ordinary shares and ADS
outstanding:
Basic 154,519,808 155,832,515 155,832,515
Diluted 163,688,037 169,896,784 169,896,784
Non-GAAP Net income per
ordinary shares and per ADS:
Basic 0.15 1.75 0.26
Diluted 0.15 1.61 0.24
These potentially dilutive securities were not include in the calculation
of dilutive earnings per share because of their anti-dilutive effect
SOURCE JA Solar Holdings Co., Ltd.
CONTACT: U.S., Deborah Stapleton, deb@stapleton.com, or Alexis Pascal,
alexis@stapleton.com, both of Stapleton Communications, +1-650-470-0200, for
JA Solar Holdings Co., Ltd.
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