* Total revenues for 3Q07 of RMB 850.0 million (US$ 113.4 million)
compared to revenues of RMB 248.0 million (US$ 33.1 million) for
3Q06
* 3Q07 net income of RMB 3.55 (US$ 0.47) per diluted ADS compared
to RMB 0.16 (US$ 0.02) per diluted ADS in 3Q06
* Based on demand forecasts the Company expects production capacity
of 425 MW per annum by the end of 2008
* Company raises full year guidance and production outlook
...Samuel Yang, JA Solar's Chief Executive Officer, said, "We continue to successfully ramp the company's sales growth, while executing our aggressive capacity expansion. In the third quarter we announced a series of important supply deals, and selectively strengthened our customer partnerships. We continue to gain confidence in our business and execution. In order to support the expected growth, we recently enhanced our operation, sales and marketing teams with the addition of several experienced executives."
Herman Zhao, JA Solar's Chief Financial Officer, said, "Gross margin was essentially steady, even though we incurred much higher operating costs to achieve our revenue growth in the third quarter 2007. In October 2007 we completed a follow-on offering of our ADR's, with net proceeds of US$198 million. The additional proceeds have strengthened our balance sheet and given us added leverage in negotiating with suppliers and added confidence in executing our expansion plan."
Company Raises Financial Outlook Based on current market conditions and customer forecasts, the Company is raising its production outlook to 120MW from 110MW for 2007. This would result in revenues for the full year of 2007 in the range of approximately RMB 2,398 million (US$ 320 million) to RMB 2,473 million (US$ 330 million) from prior guidance of RMB 2,248 million (US$ 300 million) to RMB 2,323 million (US$ 310 million). Gross margin is expected to be approximately 20.0%. Share-based compensation expense in the fourth quarter 2007 is expected to be approximately RMB 63.5 million (US$ 8.5 million). The increase in share-based compensation expense compared to third quarter 2007 is a result of stock options and restricted stock units granted to our new key executives that were hired in mid-September 2007. These newly granted option awards will vest over a four-year period.
Based on current demand we expect to reach production capacity of 425 MW per annum by the end of 2008, compared to our current 175 MW production capacity.
Investor Conference Call / Webcast Details
A conference call has been scheduled for 9:00 p.m. on Friday, November 9, 2007 (in Hebei). This will be 8:00 a.m. on Friday, November 9, in New York. During the call, time will be set-aside for analysts and interested investors to ask questions of executive officers.
