JA Solar Holdings Company raised its 2010 cell and module guidance to 1.35 gigawatts from 1 GW after a robust second quarter that yielded 2.4 billion Chinese yuan ($351 million) in revenues, a 25 percent increase from the first quarter. JA Solar said (Nasdaq:JASO) it delivered 311 MW, up by 14 percent from 272 MW in the first quarter because of production improvements. Gross margin also went up to 23.1 percent from 22.9 percent.
Peng Fang, chief executive of JA Solar, said the company’s shipments in the first half of the year have surpassed those in 2009, while second quarter shipments have overtaken those of 2008.
The module maker’s operating expenses rose from 104 million yuan to 188.3 million yuan. This was partially due to 65.4 million yuan prepayments provision to polysilicon and silicon wafer manufacturer Shunda Holdings Company.
“Business momentum remains strong and we continue to see very strong orders from existing and new customers’ requirements exceeding our productive capacity,” said Mr. Fang.
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JA Solar expects to ship 375 MW in the third quarter and higher orders through 2011 due to early placements from customers.
“While we expect to see continued strong demand from major European countries, many emerging new geographies, including China, India, United States, Canada and other regions, represent significant growth opportunities for the industry,” Mr. Fang said.
JA Solar plans to meet demand by boosting its solar cell production capacity to 1.8 GW by the end of this year from the 1.5 GW planned previously. The company plans to achieve this through more efficiency.
