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From: OmertaSoldier9/21/2007 6:13:40 PM
   of 79
 
JA Solar Names Sun New President, COO
Thursday September 20, 6:23 pm ET
JA Solar Names Kang Sun President and COO, Appoints 2 New Members to Board of Directors

NEW YORK (AP) -- China-based JA Solar Holdings Co. Ltd., a manufacturer of solar cells, said Thursday it appointed Kang Sun as president and chief operating officer.
The company said its former COO, Zhilong Zhang, will become general manager of Shanghai JA Solar PV Technology Co. Ltd., a subsidiary of JA Solar.

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Sun, 53, has served on JA Solar's board of directors since January. The company said he will remain on the board, but not as an independent director.

JA Solar also said it added two new members to its board. Elmer Hsu, 63, was most recently vice president and general director at Industrial Technology Research Institute in Taiwan. Erying Jia, 52, is an executive deputy general manager and director of JingLong Industry and Commerce Group Co. Ltd., JA Solar's largest supplier.

JA Solar shares fell $2.25, or 5.4 percent, to $39.50 in electronic after-hours trading. During regular hours, the shares rose $2.44, or 6.2 percent, to close at $41.75. The stock has ranged from $16.17 to $43.87 over the past year.

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From: OmertaSoldier11/14/2007 5:02:30 PM
   of 79
 
Q3 jaso transcript 11/11/07Huaijin Yang - Chief Executive Officer

Thanks David. Thank you everyone for joining us on today's call. Before I discuss our results for the third quarter year 2007, I would like to welcome our recently appointed President and Chief Operating Officer, Dr. Kang Sun. The addition of Dr. Sun to our already strong management further enables us to support our expected continue grooves [ph]. Dr. Sun's participation is another milestone in our corporate development. His experience at the set up and large enterprises makes him a mature feet and a value executive. We will continue to add our synergies and technical talent to our management team as we move forward in support of our business and prospectus.

In the third quarter, JA Solar demonstrated impressive sales growth and profitability while excluding on our equity capacity expansions. Total revenue grew to $113.40 million while $33.1 million in a year ago quarter, and $61 million in the second quarter year 2007. Megawatt produced and shipped in the quarter were 44.6 megawatt and 43.8 megawatts respectively, compared to 9.7 megawatt produced and 9.2 megawatt shipped in the year ago quarter and a 22.6 megawatt produced and 24 megawatt shipped in the prior quarter. We attribute our strong performance in the quarter to the healthy market demand for our products and the operational excellence of our management team. The successful management of our supply chain resulted in key wafer supply agreements with new and existing suppliers.

This contract further strengthens our long-term wafer supply and will enable us to meet our growth objectives as we work to satisfy ever demanding market needs for our products. As market demand for our cell continued to increase we are focused on remaining competitive in the rapidly developing solar energy market. Our challenging and accruing R&D team is dedicated to achieving our desire to fill efficiency targets as well as to receiving feasible technologies. We also recently added several proven executives to our operation, business development, sales, and our marketing teams to support our immediate business growth and long-term objectives. We are nicely with our capacity expansion and remain on target to reach 425 megawatts of annual nameplate [ph] capacity by year end 2008.

Outlook, we remain optimistic in our outlook for the full year 2007 based on our current market conditions and a customer forecast we are rating our production outlook for year 2007 to 120 megawatts from prior guidance of 110 megawatts. This would result in the revenue for the full year 2007 in the range of approximately $320 million to $370 million with growth margin expected to be approximately 20%. This is compared to our prior guidance for revenue for the full year 2007 in the range of $300 million to $310 million with gross margin of approximately 19.5%.

As stated previously our capacity expansion target for year-end 2008 remained on track for 425 megawatts of annual name plate production capacities compared to our current production capacity of 175 megawatts. I would like to turn it over to our CFO for a review of our Q3 performance.

Hexu Zhao - Chief Financial Officer

Thank you, Huaijin. Good morning everyone, now let me report to you some of our Q3 key financials details. Further revenues in the third quarter '07 were $113.4 million compared to $33.1 million in the third quarter '06 and $61 million in the prior quarter. The third quarter '07 included Solar sales processing revenue of a $5.6 million compared to 0 in the third quarter '06 and a $3.5 million in the second quarter '07. Total gross profit for the third quarter '07 was $26.6 million including the solar sales, process and services profit of $4.1 million. Total gross margin was 23.45% in the third quarter '07 compared to 24.1% in the second quarter '07.

Net income available to ordinary shareholders for the third quarter '07 was $22.1 million compared to net income of $0.55 million in the third quarter '06 and net income of $10.1 million in the second quarter '07. Basic and diluted earnings for ADS for the third quarter was $0.48 and $0.47 respectively. This compares to basic and the diluted earnings for ADS of $0.02 in the prior year quarter. Each ADS represents three of our ordinary shares. Share based compensation expense was $2 million for the third quarter '07 or $0.04 per diluted ADS. ASP's remained relatively stable in the third quarter. ASP's for the third quarter was $3 per watt compared to $2.96 per watt in the second quarter '07 using the third quarter ending exchange rate for same comparison basis. The ASP's are especially to remain stable for the remainder of '07.

Expense... R&D expense was $148,000 in the third quarter '07 compared to $52,500 in the third quarter '06 and the $94,700 in the second quarter of '07. SG&A was $3.7 million including $1.9 million share based compensation expense for the quarter compared to $3.3 million in the prior year quarter and the $3.4 million in the second quarter of '07. Cost per watt for the quarter was $2.37. At the end of the third quarter '07, JA Solar had a cash and a cash equivalent of $106 million U.S.

In order to support our aggressive growth plan to reach 425 megawatt of capacity in 2008 we recently completed a successful follow-on offering with net proceeds up 198 million. The additional proceeds had threatened our [indiscernible] as it is leveraged it is negotiating with capacity and as it comes in, in executing our expansion plan. Operator, that concludes our remarks, you can take questions now.

Question And Answer

Operator: Ladies and gentlemen. [Operator Instructions]. Our first question comes from Jesse Pichel with Piper Jaffray, please state your question.

Jesse Pichel - Piper Jaffray

Hi, good evening. Congratulations on your quarter.

Huaijin Yang - Chief Executive Officer

Thank you Jesse

Jesse Pichel - Piper Jaffray

Can you help us for clarification of that guidance 320 to 330 megawatts, does that include total tolling, sub processing?

Huaijin Yang - Chief Executive Officer

Yes.

Jesse Pichel - Piper Jaffray

Okay, And it looks like you doing about $2.6 million cells per quarter now, per line. Is that correct?

Huaijin Yang - Chief Executive Officer

For the seven lines each line averaged about 6 million pieces as per demand.

Jesse Pichel - Piper Jaffray

So you did about 18 million pieces in the quarter, is that about right?

Huaijin Yang - Chief Executive Officer

For this quarter, that is about right, yes, 17.9 to be... actually 18.2 to be exact.

Jesse Pichel - Piper Jaffray

18.2 and then that's 2.4 watts per cell

Huaijin Yang - Chief Executive Officer

2.44 average.

Jesse Pichel - Piper Jaffray

So I mean you getting pretty good throughput on your lines, do you think you can increase that further or are we at a maximum now for your output per quarter?

Huaijin Yang - Chief Executive Officer

I think Q3;s output is excellent in our execution.

Jesse Pichel - Piper Jaffray

Yes.

Huaijin Yang - Chief Executive Officer

So we were adding lines, I would say that's probably the very good results.

Jesse Pichel - Piper Jaffray

What are you thinking about cell ASPs for the first half of '08, how are they trending based upon your customer interest?

Huaijin Yang - Chief Executive Officer

At this moment we have not in fact to provide guidance for '08 but so far we seen ASP trend will continue at least for the first half of '08.

Jesse Pichel - Piper Jaffray

Okay, great. I will let someone else ask the question. Thank you.

Huaijin Yang - Chief Executive Officer

Thank you, Jesse.

Operator

Our next question comes from Vishal Shah with Lehman Brothers. Please state your question.

Vishal Shah - Lehman Brothers

Yes, hi, congratulation. Thanks for taking my question. Can you just clarify what your output was for the tolling business in terms of megawatts?

Huaijin Yang - Chief Executive Officer

For third quarter the tooling is about at 8.2 megawatts.

Vishal Shah - Lehman Brothers

Okay and it looks like your guidance for the fourth quarter assumes your internal production would decline from third quarter. Can you just explain why that could be... I am looking at your wafer supply in the fourth quarter and looks like its improving compared to third quarter, so can you just talk about some of the dynamics there? Thank you.

Huaijin Yang - Chief Executive Officer

For the Q4's output, you are talking about that.

Vishal Shah - Lehman Brothers

Yes.

Huaijin Yang - Chief Executive Officer

Well we want to say Q4 as I just explained, in Q3 we had an excellent production throughput. So we would expect at the best Q4 will be there at same level.

Vishal Shah - Lehman Brothers

Okay...

Huaijin Yang - Chief Executive Officer

Better in output. Yes.

Vishal Shah - Lehman Brothers

For 120 megawatts of production would assume that your Q4 production is declining to 35, 36 megawatts. Is that dried or...

Huaijin Yang - Chief Executive Officer

Well we kind of increased the guidance to 120 but it is not exactly what we had planned to do for Q4.

Vishal Shah - Lehman Brothers

Okay, great and then can you just talk about your margins in tolling business and how you think they could look at, look like as more cell capacity comes on line in 2008?

Huaijin Yang - Chief Executive Officer

Module is not however, focused as we are in the... so probably we will see... I mean, for the tooling part we will see a decline in 2008, so it won't impact our margin at all. That's not our focus area for our... in the business.

Vishal Shah - Lehman Brothers

Thank you.

Operator

Our next question comes from Pavel Molchanov with Raymond James. Please state your question.

Pavel Molchanov - Raymond James

Hi, good evening, great quarter. Question about your 2008 capacity additions, can you give a sense of what the pace of those additions will be to reach 425 at year-end?

Kang Sun - President and Chief Operating Officer

Yes, this is Kang Sun for JA Solar. Our first new line will commission some times in mid of June and two lines per month will follow that.

Pavel Molchanov - Raymond James

I am sorry, you said in the middle of June will be the first?

Kang Sun - President and Chief Operating Officer

2008, we will be the first in new lines with commission.

Pavel Molchanov - Raymond James

Got it. Okay, thank you. And then second, on second quarter call you mentioned that in October you would get or would potentially get a lower tax rate as a high tech enterprise from the Provisional [ph] government, can you give us an update on that?

Huaijin Yang - Chief Executive Officer

Yes, this is Huaijin Yang. We are still in the process of applying a high-tech enterprise certificate. After receiving the certificate whether we can enjoy the tax benefit it really depends on the data of the provision of the new tax laws which we expect to announce soon. So the Chinese Tax Authority has not announced a detailed tax provision yet.

Pavel Molchanov - Raymond James

Got it. And when would you expect to get that certificate?

Huaijin Yang - Chief Executive Officer

The certificate we expect to get that in short period of time. I mean it could be anytime from now on.

Pavel Molchanov - Raymond James

Okay, great. Thanks very much.

Huaijin Yang - Chief Executive Officer

Thank you.

Operator

Our next question comes from Angello Chan with Credit Suisse Group. Please state your question.

Angello Chan - Credit Suisse

Okay, good evening. Hexu, Huaijin, and Dr. Sun, my question is can you give us some guidance on the what was the actual third quarter wafer cost, let's say per wafer per watt and how does that actually compare to second quarter? And yes, let us begin with that.

Huaijin Yang - Chief Executive Officer

Okay, our cost structure for third quarter, total cost as I mentioned of $2.37. So out of this total cost, 92.14% is wafer cost, 2.7% is the depreciation and amortization cost, and direct labor was about 0.45%, the remaining part of 4.71% which including packaging, utility, rent expense and other material need to be used to produce solar cells.

Angello Chan - Credit Suisse

Great and just to clarify what was just... the first new lines in '08 would start in June and how many lines per month did you say JA Solar

Huaijin Yang - Chief Executive Officer

Yes, we are planning... we anticipate two lines per month.

Angello Chan - Credit Suisse

Two lines per month starting in June '08?

Huaijin Yang - Chief Executive Officer

Yes.

Angello Chan - Credit Suisse

Is that right?

Huaijin Yang - Chief Executive Officer

Correct.

Angello Chan - Credit Suisse

Wonderful and Herman is all the share-based compensations still booked just in the G&A item, line item?

Hexu Zhao - Chief Financial Officer

Majority of stock-based compensation goes to SG&A, very low goes to a manufacturing overhead. For example, for the third quarter only about $100,000 went to manufacturing overhead, the other $1.9 million went to SG&A.

Angello Chan - Credit Suisse

Thank you very much. That's it.

Huaijin Yang - Chief Executive Officer

Thank you.

Operator

Our next question comes from Dan Ries with Collins Stewart. Please state your question.

Dan Ries - Collins Stewart

: Hi, thank you very much, great quarter guys. Can you provide some sense for the time between when a facility produces its first cell to when it would reach full volume is it two months, three months, any sense for that?

Huaijin Yang - Chief Executive Officer

Two months, this is Huaijin.

Dan Ries - Collins Stewart

: Two months okay, great. And I think one of the earlier questions was that tax rate, do you have an estimate of the tax rate that we should use for 2008 and 2009?

Huaijin Yang - Chief Executive Officer

I would say to be conservative we better use 15%, as I mentioned even though we feel comfortable we can get our hi-tech certificate it does not necessarily mean we can enjoy the tax benefit. It really depends on the detailed provision of the new tax law.

Dan Ries - Collins Stewart

Okay. Thank you very much.

Huaijin Yang - Chief Executive Officer

Thank you.

Operator

Our next question comes from Pierre Maccagno with Needham & Company. Please state your question.

Pierre Maccagno - Needham & Company

Congratulations on the quarter Herman and Samuel. Could you update on the price of silicon contracts going forward, is it somewhat flat or increasing, decreasing or what is your view on that?

Hexu Zhao - Chief Financial Officer

Yes, Pierre, this Herman again. We have a price, we will negotiate the price with majority of our vendors sometime soon because what... we plan on doing the road show. The four major Jinglong, Shunda, M.SETEK and ReneSola. So far we only have the price for next year from ReneSola which we disclosed in our S1. The price for next year is compared to this year's price about 6% discount for ReneSola, M.SETEK currently the price we are paying $5 per piece and as I mentioned we are giving really negotiable price for next year anytime soon but since we are based on the contract we paid big deposit to them. We do see in return we should get a good price for next year. Jinglong is the same situation. We made a little pre-payment to them, we do expect to get a good price and Shunda, we are the only customer so far made pre-payment to support their expansion. In return, we do expect to get a good price, that's how much I can color on.

Pierre Maccagno - Needham & Company

Fantastic and for next year how much for the silicon contract will you say you will have? What type of --

Hexu Zhao - Chief Financial Officer

Again we see that... yes, during the road show we shared with everybody, we have 325 megawatt secured for next year.

Pierre Maccagno - Needham & Company

Okay, great. Thank you very much and congratulations again.

Hexu Zhao - Chief Financial Officer

Thank you.

Operator

Our next question comes from James Bash [ph] with Dialytic [ph]. Please state your question.

Unidentified Analyst

Hi, how are you guys doing?

Huaijin Yang - Chief Executive Officer

Good, thank you.

Unidentified Analyst

A question about Q4 guidance. I just wanted to clarify something to make sure I am running the numbers okay. The guidance implies that the mid point of 320 to 330, I guess around $109 million in revenues. I think the Street is higher around $115 million. I know that's coming from a production, looks like a slowdown in the production shipment versus Q3. I know you addressed that a little bit earlier, but I want to get a sense of what's causing that and then also... and I might be off of my math but the gross margins of 20% for the full year implies I think around 14% to 15% gross margins in Q4, and I must be doing something wrong, maybe its 17% or 18% but if you could clarify that for me?

Huaijin Yang - Chief Executive Officer

First, we do not provide any quarterly guidance but things we are getting there what we essentially see is that we are using conservative approach. If the deliver [ph] price still stay the same they actually still the same for the remaining of the year. We do see some room for the improvement on the margin.

Unidentified Analyst

Thank you.

Huaijin Yang - Chief Executive Officer

Thank you.

Operator

Our next question comes from Adam Hinckley with CIBC World Markets. Please state your question.

Adam Hinckley - CIBC World Markets

Hey, guys congratulations on a great quarter. So, I guess my first question relates to the Shunda wafer deal starting from next year, are you getting the majority of the wafer requirements coming from Shunda and I know that they are planning on ramping their own poly silicon capacity. So of the give or take 160 megawatts of wafers that they are going to be supplying to you can you comment on what they have internally secured from outside suppliers and what is expected to be produced internally from their own poly plant?

Huaijin Yang - Chief Executive Officer

Yes Shunda is one of the major suppliers to us. They have their own poly silicon source, we purchased the wafer from them. We just came back from Shunda couple of days ago, I think they have just come back today, just a few hours ago. We look at their construction and progress there. They anticipated they have first poly silicon produced sometime in June of 2008.

Adam Hinckley - CIBC World Markets

So first poly silicon is June of 2008?

Huaijin Yang - Chief Executive Officer

Correct.

Adam Hinckley - CIBC World Markets

So of the wafers that they are supposed to ship to you do they have all of the poly secured from external sources already?

Huaijin Yang - Chief Executive Officer

From now, we have contracted with them.

Adam Hinckley - CIBC World Markets

Okay.

Huaijin Yang - Chief Executive Officer

I think the part of the contract require their own poly silicon capability and part of the contract require their outsourcing capability for poly silicons comes from other suppliers.

Adam Hinckley - CIBC World Markets

Okay, so could you share with us what percentage is going to be of their own internal poly silicon production?

Huaijin Yang - Chief Executive Officer

We have not thought about this... we didn't have the contract with them in this in the category. We have just one bucket of contract by the... at this moment we feel quite comfortable that the contract will be executed on time.

Adam Hinckley - CIBC World Markets

Okay and then could you remind us about Jinglong's capacity expansion from the road show, it seems like that there is going to be a monthly decline in wafer shipments starting in 2008 from about 4.3 million wafers come up in the 4Q of this year to about 3 million wafers per month, I am just wondering why this is occurring especially given the fact that they are probably ramping their capacity as well.

Huaijin Yang - Chief Executive Officer

Actually, Jinglong is ramping up their production capacity, they also verified, and you also know that Jinglong has the MOU 1, 2, 3 with time locks [ph] so each year the suppliers take the material from [indiscernible] is also increasing and Jinglong has... before our IPO or at the moment of our IPO Jinglong is one of 10 supplier for our wafers.

Adam Hinckley - CIBC World Markets

Right.

Huaijin Yang - Chief Executive Officer

But since then we are diversifying our source. So now we have 5... we have four contracts before major suppliers still going to come. One of the suppliers...

Adam Hinckley - CIBC World Markets

No I understand that...

Huaijin Yang - Chief Executive Officer

From next year we would continue to... probably they will become our minor supplier, that's our strategy.

Adam Hinckley - CIBC World Markets

You want them to become a minor supplier, I am sorry, is that what you said?

Huaijin Yang - Chief Executive Officer

I think in terms of percentage, yes.

Adam Hinckley - CIBC World Markets

Okay but so my question is why the actual number of wafers declining in 2008 relative to 2007, is that just conservatism because you have a contract given in place?

Huaijin Yang - Chief Executive Officer

According to contract we have the... we can buy... they have the obligation to supply 100% of the wafers to JA Solar.

Adam Hinckley - CIBC World Markets

Okay.

Huaijin Yang - Chief Executive Officer

At JA Solar it is not necessary to buy one and spend it from them [ph]

Adam Hinckley - CIBC World Markets

Okay and then I guess just a last question and I will jump back in queue after this. So it seems like you are operating slightly above nameplate capacity based on the production numbers from this quarter. Now, you are adding ten lines next year should we assume that you operate at the same level for those ten lines as you are on these existing seven lines?

Huaijin Yang - Chief Executive Officer

No we can not exactly to next year, this year we do improve our productivity substantially and stood on the efforts and include the manufacturing technology. So that's the year to line and two lines on the ground is where we will be before...

Adam Hinckley - CIBC World Markets

Okay, thanks guys

Huaijin Yang - Chief Executive Officer

Thank you

Operator

Our next question comes from Cheryl Tang with Goldman Sachs. Please state your question.

Cheryl Tang - Goldman Sachs

My question is that to first, can we have some sense on the client base, how much is from China, how much is from overseas? And second we thought it was a huge increase derived from third party customers in Q3 and how should we expect it in Q4 next year?

Hexu Zhao - Chief Financial Officer

Hi Cheryl, this is Herman. To answer your first question for Q3 we have about 17.6% shipment to overseas customer and 82.4% to domestic customers, so that's the big change from Q2. In Q2 if everybody remembers we had 91.6% for domestic customers and 80.4% for overseas. So that's a big improvement. For the... you asked for the advanced payment from customer?

Cheryl Tang - Goldman Sachs

Yes.

Hexu Zhao - Chief Financial Officer

Well I can see... I can answer your question indirectly. So, for example our comp receivables for this quarter really only represents about a 18% of our Q3 sales. Both our Q2 accounts receivable represents 33% total sales. So we see... we will try to manage our net return to a limited customer. So we still prefer to ask customer to do upfront payment if we can. Of course we try to keep ourselves in a competitive situation.

Cheryl Tang - Goldman Sachs

Okay, my last question is on the foreign exchange loss of 18 million RMB in Q3. Can you share with us?

Huaijin Yang - Chief Executive Officer

You are talking about...

Cheryl Tang - Goldman Sachs

Foreign exchange loss.

Huaijin Yang - Chief Executive Officer

Foreign exchange loss?

Cheryl Tang - Goldman Sachs

Yes.

Huaijin Yang - Chief Executive Officer

That's due to, we have a big chunk of cash overseas which will take a longer time to bring to China. I think we did talk about our several models how to minimize the exchange loss. We will make a final decision somehow soon. We have several models how to diversify and minimize the risk.

Cheryl Tang - Goldman Sachs

Okay, thank you.

Huaijin Yang - Chief Executive Officer

Thank you.

Operator

Our next question comes from Max Lee with Morgan Stanley please state your question.

Max Lee - Morgan Stanley

Yes good evening Samuel and Herman. Congratulations on a very good quarterly results. Just two quick questions here for you. Can you please tell us the silicon cost and the manufacturing cost on the per watt basis in the third quarter?

Huaijin Yang - Chief Executive Officer

Okay let me... I think total cost is $2.37, okay 237 times 92.14% so the per watt cost for wafer is $2.18, the remaining is part of manufacturing overhead cost.

Max Lee - Morgan Stanley

: Okay. Great.

Huaijin Yang - Chief Executive Officer

Thank you

Max Lee - Morgan Stanley

My second question is that what is your average conversion efficiency currently? What would you expected it to be, let say by end of this year and also end of '08 and how would you achieve that?

Huaijin Yang - Chief Executive Officer

Our current average efficiency is 16.5% to 16.75%. Our target is something like 15.5% to 17% about the end of this year or early next year.

Max Lee - Morgan Stanley

And what about the target for next year?

Huaijin Yang - Chief Executive Officer

Well next year target is 17.5%.

Max Lee - Morgan Stanley

And what are the R&D initiatives that you... that make you achieve the target?

Kang Sun - President and Chief Operating Officer

Max, this is Kang Sun of JA Solar. We have several R&D initiatives through many tools, different platforms. One, has put us on the new cell design, another one is new manufacturing protocol, and this is together, we are quite a confident to kind of achieve 17.5 in 2008.

Max Lee - Morgan Stanley

Okay, can we have some more colors on the likely process that you are going to adopt?

Kang Sun - President and Chief Operating Officer

We basically use... I can't disclose too much detail at this time. We use the commencement of platform and basically we have now the government effecting protocol substantially. Then we will modify our cell processing... cell design slightly and the processing catalogue slightly. I can't, I really can not get into this in-depth

Max Lee - Morgan Stanley

Okay, I understand. Thank you very much.

Kang Sun - President and Chief Operating Officer

Thank you Max.

Operator

Our next question comes from Stuart Bush with RBC Capital Markets. Please state your question.

Stuart Bush - RBC Capital Markets

Yes, good evening guys, congratulations. This new expansion that you are doing, can you clarify what locations it will be in and if the CapEx per line has changed from previously and connected to that what is the lead time for new equipment that you are seeing these days?

Huaijin Yang - Chief Executive Officer

We decided to have this as a 10 new lines in our current manufacturing facility next to our current manufacturing facility in Ningjin, Hebei Province [ph]. The CapEx for the machines range from $5 million to $6 million per line. The lead time in our estimation depends on the different equipment coming at different times about four hours of [indiscernible] sometime from the March to the time we can commission it.

Stuart Bush - RBC Capital Markets

Is there a certain piece of the equipment that's acting as a bottleneck at this point?

Huaijin Yang - Chief Executive Officer

We have anticipated that problem we are already working on that. We... at this time we are very confident that in June we can commission our first new line.

Stuart Bush - RBC Capital Markets

And just to clarify the previous question about increasing the efficiency on the lines is that going to require any retro fit CapEx for your existing lines?

Huaijin Yang - Chief Executive Officer

No. For the first generation with the current platform we are not planning to change our manufacturing protocol.

Stuart Bush - RBC Capital Markets

Okay, great. Thanks.

Operator

Our next question comes from Jesse Pichel with Piper Jaffray. Please state your question.

Jesse Pichel - Piper Jaffray

Hi, thanks for the follow-up question. I would like to confirm some thing, your guidance there for 20% margin does that exclude tooling?

Huaijin Yang - Chief Executive Officer

Actually, no, that includes tooling.

Jesse Pichel - Piper Jaffray

So what is the total company gross margin in Q4 to get to your growth... full year gross margin, is it about 18%?

Huaijin Yang - Chief Executive Officer

Good question, I think everybody can do a simple calculation but as I said if the River price remain the same for the remainder of the year and if that has to still remain the same I think we have some room for the margin improvement.

Jesse Pichel - Piper Jaffray

So maybe I should ask you this, what are you assuming based on this guidance. What type of wafer price increase are you assuming and what kind of ASP decline are you assuming.

Huaijin Yang - Chief Executive Officer

Well basically at this moment we are kind of conservative, we don't anticipate a sky high for wafer, we don't see a big drop for the ASP. So I think the message is very clear, we just be kind of conservative, I guess.

Jesse Pichel - Piper Jaffray

It sounds like you are being overly conservative and your stock looks like its going to be effected here by the conservatism. But let me ask you on the revenue side, the top of your guidance 330 would suggest a flat quarter-on-quarter revenue number and I'm just wondering what are the factors that you see that could effect upside to that or coming in at the bottom of that guidance of 320 for year, is it ASP is the primary driver or is it the expansion of your lying on 9 and 10.

Huaijin Yang - Chief Executive Officer

Are you talking about '08 or Q4.

Jesse Pichel - Piper Jaffray

Q4 specifically.

Huaijin Yang - Chief Executive Officer

Yeah as I mentioned, in the Q3 I think we had an excellent execution for production offshore. So if we can achieve the same level for Q4 again, there is some room to improve the Q4 revenues.

Jesse Pichel - Piper Jaffray

But you have two lines that are ramping in Q4 is that right. Line --

Huaijin Yang - Chief Executive Officer

You mean the bottom net part?

Jesse Pichel - Piper Jaffray

Yes.

Huaijin Yang - Chief Executive Officer

Actually we have not executed that part yet, so that's why we have not set a data in Q4. We do not anticipate that the bottom net will happen soon so that's why, probably that's how we can factor in early net sales of revenue. Not this year and Q4.

Jesse Pichel - Piper Jaffray

Okay, can you confirm your cell processing cost, just the cell processing is $0.19, is that correct?

Huaijin Yang - Chief Executive Officer

That is right Jesse.

Jesse Pichel - Piper Jaffray

And that's down from $0.22 last quarter?

Huaijin Yang - Chief Executive Officer

Yes, that really depends on yes, we had high throughput, excellent Q3 throughput. So, the more product you can produce the less we are adequate to each sales so, that's why it's a little bit lower for this quarter.

Jesse Pichel - Piper Jaffray

How low do you think you could go over the next four quarters?

Huaijin Yang - Chief Executive Officer

I don't think there are too much room there because you know we are ready to keep our base rate very low and we have basically maximized our throughput already.

Jesse Pichel - Piper Jaffray

Sam, I mean that $0.19 seems markedly lower cost than even some of the Chinese companies, could you talk about, without giving away too many secrets how are you able to do this?

Huaijin Yang - Chief Executive Officer

Just the technology. That's why we put a technology team together as you are probably aware we just had the CTO from... we bring the semi-conductor practice into our fab operations for those who have just entered on the call.

Hexu Zhao - Chief Financial Officer

Jesse, to answer your question, I think the main job is the throughput. For example each 25 megawatt line we can produce like around 30,000 pieces per day. That's a big driver.

Jesse Pichel - Piper Jaffray

Which is what on an annualized megawatt number, how many megawatts a year do you think you can get out of 25 megawatt line?

Huaijin Yang - Chief Executive Officer

Well we can say at least for the nameplate 25 megawatt we think we can achieve that.

Jesse Pichel - Piper Jaffray

Fine, thank you very much.

Huaijin Yang - Chief Executive Officer

Thank you Jesse.

Operator

[Operator Instructions]. Our next question comes from Dan Ries with Collins Stewart, please state your question.

Dan Ries - Collins Stewart

Okay, actually my question was kind of a last question but do you have any, I know you don't publish a backlog number but do you have any, can you share anything about how far in advance your customers forecast to you go at this point.

Huaijin Yang - Chief Executive Officer

We are just had 2008 planning. So, I think... we don't have over the concept nearby, although we are very comfortable and our customer base will satisfy our capacity for next year

Dan Ries - Collins Stewart

And how far in advance do you negotiate price at this point is it still...

Huaijin Yang - Chief Executive Officer

It is customer dependent. We have most... most of them are one year contracts.

Dan Ries - Collins Stewart

And do they renew just staggered as to whenever they resigned or is there a big group of them that renew in January for example?

Huaijin Yang - Chief Executive Officer

As to more than half of them were renewed on the calendar year.

Dan Ries - Collins Stewart

Okay. Well, thank you very much.

Huaijin Yang - Chief Executive Officer

Thank you.

Operator

Thank you. At this time I will turn the conference back over to management for closing comments.

Huaijin Yang - Chief Executive Officer

Thank you again everyone for joining us today. Our track record on Phase II demonstrated... added the confidence that we will continue to grow our business efficiently and profitably. We look forward for providing you with further updates on our progress. If you have any questions please contact our Investor Relations team. Thank you.

Operator

Thank you. This concludes today's conference

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From: OmertaSoldier11/14/2007 5:07:18 PM
   of 79
 
JA Solar Reports Third Quarter 2007 Results 11/9/07
Friday November 9, 7:00 am ET

* 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

HEBEI, China, Nov. 9, 2007 (PRIME NEWSWIRE) -- JA Solar Holdings Co., Ltd. (``JA Solar'', ``the Company'') (NasdaqGM:JASO - News) today reported financial results for the third quarter ended September 30, 2007.

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Third Quarter 2007 Results

Total revenues for the third quarter 2007 were RMB 850.0 million (US$ 113.4 million), compared to revenues of RMB 248.0 million (US$ 33.1 million) for the third quarter 2006, and RMB 457.0 million (US$ 61.0 million) for the second quarter 2007. The third quarter 2007 revenues included solar cell processing service revenue of RMB 41.8 million (US$ 5.6 million), compared to nil in the third quarter 2006 and RMB 26.2 million (US$ 3.5 million) in the second quarter 2007.

Total gross profit for the third quarter 2007 was RMB 199.3 million (US$ 26.6 million), including solar cell processing service profit of RMB 30.7 million (US$ 4.1 million). Total gross margin was 23.45% for the third quarter 2007, compared to 24.10% for the second quarter 2007. Excluding solar cell processing service gross profit, our gross margin was 20.87% in the third quarter 2007, compared to 20.96% in the second quarter 2007.

Net income available to ordinary shareholders for the third quarter 2007 was RMB 165.9 million (US$ 22.1 million) compared to a net income available to ordinary shareholders of RMB 4.1 million (US$ 0.55 million) for the third quarter 2006, and net income available to ordinary shareholders of RMB 75.7 million (US$ 10.1 million) for the second quarter 2007.

For the third quarter 2007 basic and diluted earnings per ADS were RMB 3.60 (US$ 0.48) and RMB 3.55 (US$ 0.47) respectively. Each ADS represents three of our ordinary shares.

The 2007 third quarter included share-based compensation expense of RMB 15.1 million (US$ 2.0 million), or RMB 0.32 (US$ 0.04) per diluted ADS.

Capital expenditures were RMB 144.3 million (US$ 19.3 million) in the third quarter 2007, as compared to RMB 47.4 million (US$ 6.3 million) in the second quarter 2007 and RMB 26.8 million (US$ 3.6 million) in the third quarter 2006. Depreciation and amortization expenses in the third quarter 2007 were RMB 10.7 million (US$ 1.4 million), as compared to RMB 6.3 million (US$ 0.8 million) in the second quarter 2007 and RMB 4.0 million (US$ 0.5 million) in the third quarter 2006. As of September 30, 2007, JA Solar had cash and cash equivalents of RMB 0.8 billion (US$ 106.0 million) compared with RMB 1.6 billion (US$ 209.0 million) at the end of the second quarter 2007. Short term debt remained at RMB 150.0 million (US$ 20.0 million) at the end of the third quarter 2007.

Set out below is a summary of megawatts produced and shipped (including processing service):

Three months ended
----------------------------------------------------------------
Megawatts September 30, 2006 June 30, 2007 September 30, 2007
--------- ------------------ ------------- ------------------

--------- ------------------ ------------- ------------------
Produced 9.7MW 22.6MW 44.6MW
--------- ------------------ ------------- ------------------

--------- ------------------ ------------- ------------------
Shipped 9.2MW 24.0MW 43.8MW
--------- ------------------ ------------- ------------------

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 September 28, 2007, which was RMB 7.4928 to US$ 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 September 28, 2007, or at any other date. The percentages stated in this press release are calculated based on Renminbi.

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.

The call may be accessed by dialing +1-201-689-8560. A live webcast of the conference call will be available on the Company's website at jasolar.com. The playback will be available beginning two hours after the live call and will be accessible by dialing +1-201-612-7415. The account number to access the replay is 3055 and the pass code is 258808.

About JA Solar Holdings Co., Ltd.

Based in Hebei, China, JA Solar Holdings Co., Ltd. is an emerging and 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, please visit jasolar.com.

Safe Harbor 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.

JA Solar Holdings Co., Ltd.
Condensed Consolidated Statements of Operations

(Unaudited)

Three months ended
------------------------------------------------------
September 30, 2006 June 30, 2007
RMB USD RMB USD
------------ ------------ ------------ ------------
Revenue from
sale of goods
Solar cells
to third
parties 226,487,802 30,227,392 429,872,021 57,371,346
Solar cells
to related
parties 21,474,267 2,865,987 909,229 121,347
Solar cells
processing -- -- 26,202,654 3,497,044
------------ ------------ ------------ ------------
Total revenues 247,962,069 33,093,379 456,983,904 60,989,737
------------ ------------ ------------ ------------
Cost of revenues
Solar cells (182,883,659) (24,407,919) (340,498,142) (45,443,378)
Solar cells
processing -- -- (6,360,581) (848,892)
------------ ------------ ------------ ------------
Total cost
of revenues (182,883,659) (24,407,919) (346,858,723) (46,292,270)
------------ ------------ ------------ ------------
Gross profit 65,078,410 8,685,460 110,125,181 14,697,467
------------ ------------ ------------ ------------
Selling, general
and administra-
tive expenses (24,497,619) (3,269,488) (24,447,478) (3,262,796)
Research and
development
expenses (393,384) (52,502) (709,269) (94,660)
------------ ------------ ------------ ------------
Total operating
expenses (24,891,003) (3,321,990) (25,156,747) (3,357,456)
------------ ------------ ------------ ------------
Income from
operations 40,187,407 5,363,470 84,968,434 11,340,011
Interest
expense (1,057,834) (141,180) (961,102) (128,270)
Interest income 317,303 42,348 19,901,549 2,656,090
Foreign exchange
gain/(loss) 152,627 20,370 (30,310,479) (4,045,281)
Other income -- -- 2,068,353 276,045
------------ ------------ ------------ ------------
Income before
income taxes 39,599,503 5,285,008 75,666,755 10,098,595
Income tax
benefit/
(expense) -- -- -- --
------------ ------------ ------------ ------------
Net income 39,599,503 5,285,008 75,666,755 10,098,595
------------ ------------ ------------ ------------
Preferred
shares
accretion (489,600) (65,343) -- --

Preferred shares
beneficial
conversion
charge (34,732,133) (4,635,401) -- --
Allocation of
income to
participating
preferred
shareholders (233,246) (31,129) -- --
------------ ------------ ------------ ------------
Net income
available to
ordinary
shareholders 4,144,524 553,135 75,666,755 10,098,595
============ ============ ============ ============
Net income per
ordinary shares
Basic 0.052 0.007 0.547 0.073
Diluted 0.052 0.007 0.542 0.072

Weighted average
number of
ordinary shares
outstanding:
Basic 80,000,000 80,000,000 138,270,000 138,270,000
Diluted 80,000,000 80,000,000 139,496,802 139,496,802

Net income
per ADS
Basic 0.155 0.021 1.642 0.219
Diluted 0.155 0.021 1.627 0.217

Weighted average
number of ADS
outstanding:
Basic 26,666,667 26,666,667 46,090,000 46,090,000
Diluted 26,666,667 26,666,667 46,498,934 46,498,934

Each ADS represents 3 ordinary shares

September 30, 2007
RMB USD
------------ ------------
Revenue from sale of goods
Solar cells to third parties 803,948,453 107,296,131
Solar cells to related parties 4,235,069 565,218
Solar cells processing 41,811,183 5,580,181
------------ ------------
Total revenues 849,994,705 113,441,530
------------ ------------
Cost of revenues
Solar cells (639,550,780) (85,355,378)
Solar cells processing (11,112,156) (1,483,045)
------------ ------------
Total cost of revenues (650,662,936) (86,838,423)
------------ ------------
Gross profit 199,331,769 26,603,107
------------ ------------
Selling, general and administrative
expenses (27,813,372) (3,712,013)
Research and development expenses (1,109,276) (148,046)
------------ ------------
Total operating expenses (28,922,648) (3,860,059)
------------ ------------
Income from operations 170,409,121 22,743,048
Interest expense (1,321,305) (176,343)
Interest income 13,992,625 1,867,476
Foreign exchange gain/ (loss) (18,952,072) (2,529,371)
Other income 1,735,985 231,687
------------ ------------
Income before income taxes 165,864,354 22,136,497
Income tax benefit/ (expense) -- --
------------ ------------
Net income 165,864,354 22,136,497
------------ ------------
Preferred shares accretion -- --

Preferred shares beneficial
conversion charge -- --
Allocation of income to participating
preferred shareholders -- --
------------ ------------
Net income available to ordinary
shareholders 165,864,354 22,136,497
============ ============
Net income per ordinary shares
Basic 1.200 0.160
Diluted 1.184 0.158

Weighted average number of ordinary
shares outstanding:
Basic 138,270,000 138,270,000
Diluted 140,095,013 140,095,013

Net income per ADS
Basic 3.599 0.480
Diluted 3.552 0.474

Weighted average number of ADS outstanding:
Basic 46,090,000 46,090,000
Diluted 46,698,338 46,698,338

Each ADS represents 3 ordinary shares

JA Solar Holdings Co., Ltd.
Condensed Consolidated Balance Sheets

December 31, 2006 September 30, 2007
RMB USD RMB USD
------------- ------------- ------------- -------------
(Audited) (Conversion) (Unaudited) (Conversion)
------------- ------------- ------------- -------------
ASSETS
Current
assets
Cash and
cash
equivalents 95,758,377 12,780,052 794,091,285 105,980,579
Accounts
receivables
from
third party
customers 47,719,752 6,368,748 120,650,789 16,102,230
Inventories 154,675,325 20,643,194 185,291,642 24,729,292
Value-added
tax
recoverable -- -- 9,863,205 1,316,358
Advances to
related
party
suppliers 39,831,642 5,315,989 319,715,194 42,669,655
Advances to
third
party
suppliers 1,608,765 214,708 541,229,919 72,233,334
Other
current
assets 6,673,976 890,719 37,545,565 5,010,886
------------- ------------- ------------- -------------
Total
current
assets 346,267,837 46,213,410 2,008,387,599 268,042,334
------------- ------------- ------------- -------------
Property and
equipment,
net 139,399,605 18,604,474 406,763,680 54,287,273
Intangible
asset, net 7,224,713 964,221 6,771,102 903,681
Other long
term
assets-
advance to
third party
suppliers -- -- 383,863,360 51,230,963
------------- ------------- ------------- -------------
Total assets 492,892,155 65,782,105 2,805,785,741 374,464,251
============= ============= ============= =============
LIABILITIES
AND
SHAREHOLDERS'
EQUITY
Current
liabilities:
Tax payables 3,639,665 485,755 -- --
Advances
from third
parties
customers 21,329,609 2,846,681 134,286,106 17,922,019
Short-term
bank
borrowings 150,000,000 20,019,218 150,000,000 20,019,218
Accounts
payable to
third
parties 2,501,790 333,893 8,034,044 1,072,235
Other
payables
to third
parties 2,769,566 369,630 10,220,319 1,364,019
Payroll and
welfare
payable 2,676,854 357,257 4,587,014 612,190
Accrued
expenses 3,932,709 524,865 11,378,964 1,518,653
Accounts
payable
to related
parties 70,868 9,458 349,411 46,633
Other payable
to related
parties 183,555 24,498 340,523 45,447
------------- ------------- ------------- -------------
Total
current
liabilities 187,104,616 24,971,255 319,196,381 42,600,414
------------- ------------- ------------- -------------
Total
liabilities 187,104,616 24,971,255 319,196,381 42,600,414
------------- ------------- ------------- -------------
Preferred
shares
(US$0.0001
par value;
6,520,000
and 0 shares
outstanding
as of
December 31,
2006 and
September 30,
2007) 110,037,714 14,685,793 -- --
Shareholders'
equity:
Ordinary
shares
(US$0.0001
par value;
493,480,000
shares
authorized,
80,000,000
and
138,270,000
shares
issued and
outstanding
as of
December 31,
2006 and
September 30,
2007) 66,212 8,837 111,453 14,875
Additional
paid-in
capital 106,715,707 14,242,434 2,095,987,596 279,733,557
Statutory
reserve 14,587,748 1,946,902 14,587,748 1,946,902
Retained
earnings 74,380,158 9,926,884 375,902,563 50,168,503
------------- ------------- ------------- -------------
Total
shareholders'
equity 195,749,825 26,125,057 2,486,589,360 331,863,837
------------- ------------- ------------- -------------
Total
liabilities
and
shareholders'
equity 492,892,155 65,782,105 2,805,785,741 374,464,251
============= ============= ============= =============

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From: OmertaSoldier11/15/2007 7:47:12 PM
   of 79
 
China Digital TV Reports Third Quarter 2007 Financial Results
Thursday November 15, 5:00 pm ET

BEIJING, Nov. 15 /Xinhua-PRNewswire-FirstCall/ -- China Digital TV Holding Co., Ltd. (NYSE: STV - News; "China Digital TV"), the leading provider of conditional access ("CA") systems to China's rapidly growing digital television market, announced today its unaudited financial results for the three months ended September 30, 2007.

Highlights for Third Quarter 2007
-- Total revenue for the quarter was US$14.4 million, a 37.3% increase
from the third quarter of 2006 and a 28.9% increase from the second
quarter of 2007.
-- Net income for the quarter was US$8.8 million, a 53.0% increase from
the third quarter of 2006 and a 46.9% increase from the second quarter
of 2007.
-- Basic earnings per ADS (1 ADS represents 1 ordinary share) were US$0.20,
compared to US$0.10 in the third quarter of 2006, and US$0.14 in the
second quarter of 2007.
-- China Digital TV shipped 1.9 million smart cards during the quarter.
-- In the third quarter, China Digital TV entered into 18 new contracts to
install CA systems, including contracts with provincial-level cable
operators in Heilongjiang and Fujian, the municipal cable operator in
Heze, Shandong province, and several cable operators in the city of
Ningbo.

"We are pleased with our results for the third quarter of 2007," said China Digital TV Chief Executive Officer Jianhua Zhu. "This quarter's strong performance reflects China Digital TV's leading market position in China's fast-developing digital television industry. With our established brand name, adaptable product solutions, consistently high-quality customer service and extensive industry partnerships, we are confident that we will maintain our leading market position and grow along with this dynamic industry."

Mason Xu, China Digital TV's Chief Financial Officer, added, "Our successful IPO last month on the New York Stock Exchange demonstrates the confidence of investors in China Digital TV's business model as well as in the tremendous potential of China's digital television industry. In the coming quarters, we hope to leverage our deep understanding of the local market, leading industry position and long-term commitment to R&D to capitalize further on this exciting growth."

Third Quarter 2007 Financial Results

(Note: Unless otherwise stated, all financial statement amounts used in this press release are based on US GAAP.)

For the third quarter of 2007, China Digital TV reported total revenues of US$14.4 million, a 37.3% increase from US$10.5 million in the same period of 2006, and a 28.9% increase from US$11.2 million in the second quarter of 2007. During the quarter, China Digital TV entered into 18 new contracts to install CA systems.

Revenues from smart cards and related products were US$12.8 million, a 40.1% increase from the same period of 2006 and a 26.6% increase from the second quarter. Smart card and related products sales were 88.7% of the total revenues for the quarter. China Digital TV shipped 1.9 million cards in the third quarter, 2007, a 32.9% increase over the number of cards shipped in the same period of 2006 and a 23.6% increase over the second quarter of 2007.

Revenues from services were US$1.6 million, a 19.0% increase over the same period in 2006 and a 49.6% increase over the second quarter, 2007. Service revenue was 11.3% of the total revenues for the quarter.

Gross profit for the quarter was US$12.0 million, a 45.1% increase from US$8.3 million in the same period of 2006 and a 34.0% increase over US$8.9 million in the second quarter of 2007. Gross margin was 83.4% for the third quarter, compared to 79.4% in the same period in 2006 and 80.3% in the second quarter of 2007. The year-over-year and quarter-over-quarter increases were primarily due to increased gross margin for system integration services for this quarter.

Operating expenses for the third quarter were US$2.6 million, a 123.0% increase from US$1.2 million in the same period of 2006 and an 11.6% increase from US$2.4 million in the second quarter of 2007.

-- Research and development expenses for the quarter increased 136.4% to
US$1.2 million from US$0.5 million in the same period of 2006 and
increased 14.2% from US$1.1 million in the second quarter of 2007. The
increases were primarily due to higher average R&D headcount for the
quarter, which grew 61.9% from the same period of 2006 and 18.0% from
the second quarter of 2007.
-- Sales and marketing expenses for the quarter increased 58.5% to US$0.8
million from US$0.5 million in the same period of 2006 and 36.1% from
US$0.6 million in the second quarter of 2007. The year-over-year and
quarter-over-quarter increases were primarily due to costs associated
with ongoing marketing and brand promotion activities.
-- General and administrative expenses for the quarter increased 308.9% to
US$0.6 million from US$0.1 million for the same period of 2006 and
decreased 13.7% from US$0.7 million in the second quarter of 2007. The
year-over-year increase was primarily due to an increase in personnel
costs and share-based compensation expenses. The quarter-over-quarter
decrease was primarily due to zero provision for doubtful receivables
in this quarter.
Operating margin for the quarter was 64.9%, compared to 68.0% for the same period of last year and 58.9% for the second quarter of 2007.

Net income for the quarter was US$8.8 million, a 53.0% increase from US$5.7 million in the same period of 2006 and a 46.9% increase from US$6.0 million in the second quarter of 2007. Basic and diluted earnings per ADS for the quarter amounted to US$0.20 and US$0.19, respectively.

Non-GAAP net income for the quarter was US$9.2 million, a 57.3% increase from US$5.9 million in the same period of 2006 and a 41.8% increase from US$6.5 million in the second quarter of 2007.

Outlook for the fourth quarter ended December 31, 2007

Based on information available on November 16, 2007, China Digital TV expects its net revenues for the fourth quarter of 2007 to be in the range of US$15.5 million to US$17.5 million, representing year-over-year growth in the range of 61% to 82%.

Conference Call Information

China Digital TV's management will host an earnings conference call at 7 p.m. November 15, 2007 (U.S. Eastern Standard Time, or 8 a.m. on November 16, 2007 Beijing/Hong Kong time).

Dial-in details for this conference call are as follows:

United States: +1-617-224-4325
Hong Kong: +852-3002-1672

Please dial-in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode for all regions is "China Digital TV Earnings Call."

Additionally, a live and archived webcast of this conference call will be accessible through the Investor Relations section of China Digital TV's website at ir.chinadtv.cn .

A replay may be accessed by phone at the following number until December
14, 2007:

United States: +1-888-286-8010
International: +1-617-801-6888
Passcode: 83073359

Safe Harbor Statements

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995.

These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "may," "should" and similar expressions. Such forward-looking statements include, without limitation, statements regarding the outlook for the fourth quarter of 2007 and comments by management in this announcement about trends in the CA systems, digital television, cable television and related industries in the PRC and China Digital TV's strategic and operational plans. China Digital TV may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about China Digital TV's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained or implied in any forward-looking statement, including but not limited to the following: competition in the CA systems, digital television, cable television and related industries in the PRC and the impact of such competition on prices, our ability to implement our business strategies, changes in technology, the structure of the cable television industry or television viewer preferences, changes in PRC laws, regulations or policies with respect to the CA systems, digital television, cable television and related industries, including the extent of non-PRC companies' participation in such industries, and changes in political, economic, legal and social conditions in the PRC, including the government's policies with respect to economic growth, foreign exchange and foreign investment.

Further information regarding these and other risks and uncertainties is included in our registration statement on Form F-1 and other documents filed with the U.S. Securities and Exchange Commission. China Digital TV does not assume any obligation to update any forward-looking statements, which apply only as of the date of this press release.

About China Digital TV

Founded in 2004, China Digital TV is the leading provider of conditional access ("CA") systems to China's rapidly growing digital television market. CA systems enable television network operators to manage the delivery of customized content and services to their subscribers. China Digital TV conducts substantially all of its business through its subsidiary, Beijing Super TV Co., Ltd., and its affiliate, Beijing Novel-Tongfang Digital TV Technology Co., Ltd.

For more information please visit the Investor Relations section of China Digital TV's website at ir.chinadtv.cn .

China Digital TV Holding Co., Ltd.
Unaudited Consolidated Statements of Operations
(in U.S. dollars)

For the three months ended
September September
30, June 30, 30,
2007 2007 2006
Revenues:
Products 12,784,867 10,094,845 9,125,783
Services 1,633,471 1,092,057 1,372,259
Total revenues 14,418,338 11,186,902 10,498,042
Business taxes (61,292) (57,393) (110,045)
Net revenue 14,357,046 11,129,509 10,387,997
Cost of Revenues:
Products (1,803,858) (1,487,442) (1,369,239)
Services (580,362) (709,499) (765,638)
Total Cost of Revenues (2,384,220) (2,196,941) (2,134,877)
Gross Profit 11,972,826 8,932,568 8,253,120
Operating expenses:
Research and development expenses (1,201,355) (1,052,015) (508,242)
Sales and marketing expenses (842,925) (619,460) (531,780)
General and administrative expenses (605,503) (701,894) (148,074)
Total Operating Expense (2,649,783) (2,373,369) (1,188,096)

Income from operation 9,323,043 6,559,199 7,065,024
Interest income 145,805 62,517 83,605
Recognition of change in the fair
value of warrants -- -- (1,351,594)
Income before income tax 9,468,848 6,621,716 5,797,035
Income tax expense - current (726,734) (659,319) --
Income tax benefit - deferred 41,044 15,560 25,582
Net income before minority interest 8,783,158 5,977,957 5,822,617
Minority interest -- -- (82,935)
Net income 8,783,158 5,977,957 5,739,682

EPS - Basic ordinary shares 0.20 0.14 0.10
EPS - Basic preferred shares 0.20 0.14 0.24
EPS - Diluted ordinary shares 0.19 0.13 0.09

China Digital TV Holding Co., Ltd.
Unaudited Consolidated Balance Sheets
(in U.S. dollars)

September December
30, June 30, 31,
2007 2007 2006
Current assets:
Cash and cash equivalents 25,926,100 16,365,704 21,137,216
Restricted cash -- 52,729 51,238
Accounts receivable 8,424,822 6,343,752 2,862,276
Inventories, net 4,559,108 4,224,011 2,759,209
Prepaid expenses and other current
assets 1,888,440 1,267,525 1,349,195
Amounts due from related parties 1,427,358 1,594,899 1,668,036
Deferred costs-current 511,184 531,955 580,157
Deferred income taxes - current 72,623 67,262 62,864
Total current assets 42,809,635 30,447,837 30,470,191
Property and equipment, net 1,035,465 901,654 537,515
Intangible assets, net 1,067,266 1,169,850 1,464,389
Goodwill 453,498 447,262 432,422
Long-term investment 402,029 105,049 --
Deferred costs - non-current 396,377 426,828 600,357
Deferred income tax - non-current 16,563 -- --
TOTAL ASSETS 46,180,833 33,498,480 33,504,874
Current liabilities:
Accounts payable 430,671 368,424 884,798
Accrued expenses and other current
liabilities 1,480,474 1,212,883 1,360,456
Deferred revenue-current 7,774,937 5,089,032 6,899,521
Dividend payable -- -- 11,300,000
Income tax payable 850,241 728,466 --
Total current liabilities 10,536,323 7,398,805 20,444,775
Deferred revenue - non-current 886,667 798,479 1,079,493
Deferred income taxes -
non-current -- 20,799 39,739
Total Liabilities 11,422,990 8,218,083 21,564,007
Minority interest 4,000,000 4,000,000 4,000,000
Series A convertible redeemable
preferred shares 16,078,197 16,078,197 16,078,197
Shareholders' equity/(deficiency):
Ordinary shares 17,000 17,000 17,000
Additional paid-in capital 5,917,571 5,574,138 4,887,267
Statutory reserve 2,353,373 2,353,373 2,353,373
Retained earnings / (accumulated
deficit) 4,808,874 (3,974,284) (16,136,820)
Accumulated other comprehensive
income 1,582,828 1,231,973 741,850
Total shareholders'
equity/(deficiency) 14,679,646 5,202,200 (8,137,330)
TOTAL LIABILITIES, MINORITY INTEREST,
SERIES A CONVERTIBLE REDEEMABLE
PREFERRED SHARES AND SHAREHOLDERS'
EQUITY/(DEFICIENCY) 46,180,833 33,498,480 33,504,874

China Digital TV Holding Co., Ltd.
Reconciliation of Non-GAAP Results
(in U.S. dollars)

For the three months ended
September September
30, June 30, 30,
2007 2007 2006

GAAP Net Income 8,783,158 5,977,957 5,739,682
Non-cash share-based compensation 343,433 378,157 31,466
Amortization of intangible assets 118,041 164,530 105,792
Non-GAAP Net Income 9,244,632 6,520,644 5,876,940

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From: OmertaSoldier12/20/2007 3:22:41 AM
   of 79
 
3Q2007 LDK 12/19
LDK Solar Reports Financial Results for the Third Quarter 2007
Wednesday December 19, 4:05 pm ET

XINYU CITY, China and SUNNYVALE, Calif., Dec. 19 /PRNewswire-FirstCall/ -- LDK Solar Co., Ltd. (NYSE: LDK - News), a leading manufacturer of multicrystalline solar wafers, today reported its unaudited financial results for the third quarter ended September 30, 2007.

All financial results are reported on a U.S. GAAP basis.

Third Quarter 2007 Financial Highlights:
-- Revenue of $158.7 million, up 60% quarter-over-quarter
-- Gross profit of $48.9 million, up 40% quarter-over-quarter
-- Net income of $41.6 million, or $0.37 per diluted ADS, up 45%
quarter-over-quarter
-- Signed four long-term wafer supply agreements during the third quarter
-- Total wafer shipments increased 49% sequentially to 78.9MW in the third
quarter

Net sales for the third quarter of fiscal 2007 were $158.7 million, up 60.2% sequentially from $99.1 million for the second quarter of fiscal 2007, and up 404.7% year-over-year from $31.5 million for the third quarter of fiscal 2006.

Gross profit for the third quarter of fiscal 2007 was $48.9 million, up 40.2% sequentially from $34.9 million for the second quarter of fiscal 2007, and up 295.1% year-over-year from $12.4 million for the third quarter of fiscal 2006. Gross margin for the third quarter of fiscal 2007 was 30.8% compared with 35.2% in the second quarter of fiscal 2007 and 39.4% in the third quarter of fiscal 2006.

Net income for the third quarter of fiscal 2007 was $41.6 million, or $0.37 per diluted ADS, compared to net income of $28.7 million, or $0.29 per diluted ADS for the second quarter of fiscal 2007, and $5.0 million, or $0.04 per diluted ADS for the third quarter of fiscal 2006.

The Company ended the third quarter of fiscal 2007 with $125.9 million in cash and cash equivalents.

"We are pleased to report strong results for the third quarter, following a positive outcome of the independent inventory review," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "With the inventory investigation behind us, we have returned our focus to growing our business. During the third quarter we experienced continued robust demand for our wafers and made great strides in expanding our customer base. We signed four long-term wafer supply contracts during the third quarter and five more since the quarter closed. We view these agreements as a testament to the quality of our products.

"We remain on track to meet our wafer production capacity goal of 400MW by the end of 2007. Additionally, the construction of our polysilicon plant is tracking with our original plan. In addition to the anticipated cost efficiencies we expect to achieve upon completion of our polysilicon plant, we are continuing cost reduction efforts through further advancements of our product processes," concluded Mr. Peng.

Business Outlook

The following statements are based upon management's current expectations. These statements are forward-looking, and actual results may differ materially. The Company undertakes no obligation to update these statements.

For the fourth quarter of fiscal 2007, LDK estimates revenue to be in the range of $180 to $185 million for wafer shipments of 87 to 92MW. The Company also estimates fully diluted earnings per ADS to be in the range of $0.40 to $0.43.

Conference Call Details

The LDK Third Quarter teleconference and webcast is scheduled to begin at 6:00 p.m. Eastern Time (ET), on Wednesday, December 19, 2007. To listen to the live conference call, please dial 800-366-7449 (within U.S.) or 303-262-2193 (outside U.S.) at 5:50 p.m. ET on December 19, 2007. An audio replay of the call will be available to investors through December 24, 2007, by dialing 800-405-2236 (within U.S.) or 303-590-3000 (outside U.S.) and entering the passcode 11104747##.

A live webcast of the call will be available on the company's investor relations website at investor.ldksolar.com.

LDK Solar Co., Ltd.
Unaudited Condensed Consolidated Balance Sheet Information
(In US$'000, except share and per share data)

9/30/2007 6/30/2007
Assets
Current assets
Cash and cash equivalents 125,858 250,600
Pledged bank deposits 106,840 2,722
Trade accounts receivable, net 8,666 7,825
Inventories 224,527 173,778
Prepayments to suppliers 183,467 129,902
Deferred expenses 236 281
Other current assets 9,325 6,281
Total current assets 658,919 571,389
Property, plant and equipment, net 224,477 169,330
Deposit for purchase of equipment 136,870 40,840
Intangible asset, net 1,098 1,117
Land use rights 29,152 8,060
Deferred income tax assets 757 151
Long-term prepayments to suppliers 10,626 -
Total assets 1,061,899 790,887

Liabilities and shareholders' equity
Current liabilities
Short-term bank borrowings 186,559 80,036
Trade accounts payable 23,044 9,525
Advance payments from customers 154,931 72,232
Accrued expenses and other payables 42,278 33,592
Total current liabilities 406,812 195,385
Deferred revenue 2,280 -
Long-term bank borrowings, excluding current
portions 29,967 29,890
Total liabilities 439,059 225,275
Shareholders' equity
Ordinary shares: US$0.10 par value;
134,000,000 shares authorized;
104,587,700 and 106,044,700 shares
issued and outstanding as of June 30,
2007 and September 30, 2007, respectively 10,604 10,458
Additional paid-in capital 482,419 473,696
Statutory reserve 3,623 3,623
Accumulated other comprehensive income 14,259 7,505
Retained earnings 111,935 70,330
Total shareholders' equity 622,840 565,612

Total liabilities and shareholders' equity 1,061,899 790,887

LDK Solar Co., Ltd.
Unaudited Condensed Consolidated Income Statement Information
(In US$'000, except per ADS data)

For the 3 Months Ended
9/30/2007 6/30/2007 9/30/2006

Net sales 158,724 99,053 31,450
Cost of goods sold (109,807) (64,153) (19,069)
Gross profit 48,917 34,900 12,381
Selling expenses (348) (132) (117)
General and administrative expenses (4,459) (3,579) (1,633)
Research and development expenses (921) (367) (76)
Total operating expenses (5,728) (4,078) (1,826)
Income from operations 43,189 30,822 10,555
Other income/(expenses):
Interest income 1,846 271 26
Interest expense and amortization of
discount on exchangeable notes (2,650) (2,180) (4,961)
Decrease in fair value of warrants - 2 9
Foreign currency exchange loss, net (2,041) (576) (667)
Government subsidy 662 406 -
Income before income tax 41,006 28,745 4,962
Income tax benefit 599 - -
Net Income 41,605 28,745 4,962
Accretion of Series A preferred shares to
redemption value - (348) (262)
Accretion of Series B preferred shares to
redemption value - (1,101) (267)
Accretion of Series C preferred shares to
redemption value - (546) -
Deemed dividend to series A preferred
shareholders - - (1,568)
Net income available to ordinary
shareholders 41,605 26,750 2,865
Net income per ADS, Diluted $0.37 $0.29 $0.04

About LDK Solar

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From: OmertaSoldier12/20/2007 3:29:15 AM
   of 79
 
q3 solf 11/29Solarfun Reports Third Quarter 2007 Results
Thursday November 29, 7:09 am ET

SHANGHAI, China--(BUSINESS WIRE)--Solarfun Power Holdings Co. , Ltd. (“Solarfun” or “the Company”) (NASDAQ:SOLF - News), a vertically-integrated manufacturer of silicon ingots and photovoltaic (PV) cells and modules in China, today reported its unaudited financial results for the quarter ended September 30, 2007.
Third Quarter 2007 Highlights

Net revenue was RMB 753.8 million (US$ 100.6 million), up 312 % from the comparable quarter in 2006, and 63% higher than 2Q 2007.
Total PV module shipments were 27.3 MW, continuing a trend of strong sequential increases from 16.4 MW and 6.5 MW in 2Q and 1Q 2007, respectively.
The average selling price (“ASP”) remained stable at $3.66, compared to $3.68 in 2Q 2007.
Gross profit reached RMB 120.7 million (US$ 16.1 million), an increase of 133 % from the same quarter last year, and 72 % from 2Q 2007.
Gross margin improved to 16% from 15.2 % in 2Q 2007.
Net income was RMB 59.6 million (US$ 8.0 million), a gain of 146 % from the same quarter in 2006, and 190% from 2Q 2007.
Earnings per basic ADS were RMB 1.24 (US$ 0.17), in the third quarter of 2007, a 22% gain from the same quarter a year ago and 190% above 2Q 2007.
Mr. Yonghua Lu, Chairman and CEO of Solarfun commented, “We are quite pleased with our progress at all levels. Our shipments continued to increase and demand remained robust. We successfully completed the addition of PV cell production lines 7 and 8 in November 2007 and have achieved annual manufacturing capacity of 240 MW. Our gross profit margin increase is a reflection of stabilizing ASP in addition to reduced raw material costs, and we have been able to leverage growing economies of scale by spreading our operating expenses across our higher sales volumes.”

“During the quarter, we continued to broaden the size and quality of our customer base, as well as our suppliers of polysilicon and wafers. Additionally, we are making solid progress on the development of our new ingot manufacturing subsidiary, Jiangsu Yangguang Solar Technology Co. Ltd. We already received wafer samples and they have met our high standards of quality. Now we are in the planning stages of a full delivery schedule.”

Other Financial Highlights for the Third Quarter of 2007

Income from operations increased to RMB 63.3 million (US$ 8.4 million), or 8.4% of total net revenue, from RMB 29.1 million (US$ 3.9 million), or 6.3% of total net revenue, in 2Q 2007. The operating profit margin in the third quarter of 2006 was 16.5%. The decline compared to last year was primarily due to spending on corporate infrastructure and sales and marketing expenses. The sequential increase in operating profit margin was largely due to spreading costs across the higher sales volume.
Interest expense more than doubled to RMB 6.7 million (US$ 0.9 million) from 2Q 2007 due to higher short-term bank debt borrowings.
Exchange losses of RMB 0.7 million (US$ 0.09 million) decreased significantly from RMB 10.4 million (US$ 1.4 million) in 2Q 2007, primarily because cash balances in U.S. dollars dropped as our IPO proceeds were invested in growing the business.
Share-based compensation expenses rose to RMB 5.6 million (US$ 0.74 million), from RMB 5.1 million (US$ 0.68 million) in 2Q 2007.
Financial Position

As of September 30, 2007, the Company had cash and cash equivalents of RMB 345.4 million (US$ 46.1 million) and working capital of RMB 1,234.0 million (US$ 165 million). Total bank borrowings were RMB 775.9 million (US$ 103.6 million). The Company filed a registration statement on Form F-1 on November 27, 2007. This registration statement seeks to register the sale of ADSs that will be used to facilitate hedging transactions by purchasers of the convertible notes that we plan to offer concurrently in a transaction pursuant to Rule 144A once the registration statement is declared effective by the SEC.

Net accounts receivable increased to RMB 681.9 million (US$ 91.0 million), from RMB 360.3 million (US$ 48.1 million) in 2Q 2007, largely due to the Company’s higher sales volumes. Days Sales Outstanding (“DSO”) continued to improve to 63 days in 3Q 2007.

Recent Events

The Company previously announced that it had secured several large multi-year framework commitments for over 185 MW for 2008 delivery. The Company had entered into signed contracts for the sale of 38.5 MW of these PV modules from 2007 to 2008.
In November 2007, the Company entered into an agreement with LDK, under which LDK agreed to deliver to us multicrystalline wafers valued at approximately RMB 2 billion from early 2008 to 2010.
On November 26, 2007, the Company announced a $306 million polysilicon supply contract with Hoku Scientific, Inc., with deliveries beginning in 2009 and continuing over an eight-year period.
The company made certain adjustments to its financial results for the six months ended June 30, 2007, resulting in an increase in net income of RMB 1.2 million from its previously announced results for the two quarters ended June 30, 2007. These adjustments primarily include a decrease in the Company’s operating expenses due to forfeiture of options granted to departing employees, partially offset by an increase in income tax.
Management Changes

We recently appointed Ms. Amy Jing Liu to be our chief financial officer, replacing Mr. Kevin C. Wei, whose employment contract expired on October 31, 2007. Ms. Liu brings broad finance and operations management experience with large multi-national companies, having previously worked as VP- Director of Finance- China and Hong Kong in Thermo Fisher Scientific and as Finance manager in DuPont. Ms. Ru Cai, our principal accounting officer whose employment contract also expired on October 31, 2007, departed the Company. In addition, Mr. Fei Yun recently resigned as director of technology.

Business Outlook 2007

Based on current operating trends and other conditions, Solarfun is raising its 2007 full year guidance as follows:

Net revenue of US$280-US$300 million, which represents an increase of 230%-250% over 2006. This compares to the previously announced guidance of US$250 million to US$270 million.
Full-year shipments at the high end of the previously communicated guidance of 70-80MW, which represents a 210% to 254% increase over 2006.
The Company already reached its target of hitting annualized total PV cell production capacity of 240MW by the end of 2007.
Chairman Lu concluded, “Looking forward, we are reiterating our optimism for the fourth quarter and full year ahead. We now have 240 MW of capacity in place, and we plan to continue to expand our production capacity in order to meet our anticipated demand, which remains robust. Additionally, our supply situation is improving; we believe we have secured 100% of our needs in 2007 and a significant portion of our anticipated needs in 2008, and pricing through the remainder of this year and well into next looks to be quite strong”

Conference Call

Management will host a conference call to discuss the results at 8:00 am U.S. Eastern Time (9:00 pm Shanghai time) on November 29, 2007.

Mr. Yonghua Lu, Chairman and Chief Executive Officer, Ms. Amy Jing Liu, Chief Financial Officer, and Paul Combs, Vice President of Strategic Planning, will discuss the results and take questions following the prepared remarks.

The dial-in details for the live conference call are as follows:

- U.S. Toll Free Number: 1 877 847 0047
- International dial-in number: +852 3006 8101
- China Toll Free Number: 800 876 5011
Passcode: Solarfun Call.

A live webcast of the conference call will be available on the investor relations section of the Company's website at: solarfun.com.cn. A replay of the webcast will be available for one month.

SOLARFUN POWER HOLDINGS CO., LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"),

except for number of shares and per share data)


For the three months ended For the nine months ended
September 30 June 30 September 30 September 30 September 30 September 30 September 30
2006 2007 2007 2007 2006 2007 2007
RMB RMB RMB US$ RMB RMB USD
Net revenue
Photovoltaic modules
180,834 462,282 752,613 100,445 360,154 1,405,370 187,563
Photovoltaic cells
52 501 1,227 164 6,624 1,994 266
Photovoltaic cells processing
1,872 - - - 19,461 - -








Total net revenue 182,758
462,783 753,840 100,609 386,239 1,407,364 187,829








Cost of revenue
Photovoltaic modules
(129,919 ) (391,889 ) (632,026 ) (84,351 ) (255,867 ) (1,181,615 ) (157,700 )
Photovoltaic cells
(71 ) (559 ) (1,072 ) (143 ) (5,548 ) (1,856 ) (248 )
Photovoltaic cells processing
(880 ) - - - (6,014 ) - -








Total cost of revenue
(130,870 ) (392,448 ) (633,098 ) (84,494 ) (267,429 ) (1,183,471 ) (157,948 )








Total gross profit 51,888
70,335 120,742 16,115 118,810 223,893 29,881








Operating expenses
Selling expenses (2,906 ) (13,014 ) (21,020 ) (2,806 ) (6,023 ) (40,472 ) (5,401 )
G&A expenses (17,194 ) (18,740 ) (29,368 ) (3,919 ) (31,585 ) (64,000 ) (8,542 )
R&D expenses (1,543 ) (9,433 ) (7,053 ) (942 ) (2,723
) (22,710 ) (3,031 )








Total operating expenses (21,643 ) (41,187 ) (57,441 ) (7,667 ) (40,331 ) (127,182 ) (16,974 )








Operating profit 30,245 29,148 63,301 8,448 78,479 96,711 12,907








Interest expenses (2,077 ) (2,694 ) (6,683 ) (892 ) (3,855 ) (14,685 ) (1,960 )
Interest income 389 4,159 4,333 578 492 18,049 2,409
Exchange losses (2,225 ) (10,370 ) (698 ) (93 ) (2,123 ) (22,321 ) (2,979 )
Other income (244 ) 2,201 19,173 2,559 486 22,424 2,993
Other expenses (240 ) (350 ) (20,946 ) (2,795 ) (474 ) (21,627 ) (2,886 )
Value of embedded foreign currency derivative
(1,648 ) - - - (1,082 ) - -
Government grant - - 700 93 640 720 96








Net income (loss) before tax and minority interest
24,200 22,094 59,180 7,898 72,563 79,271 10,580








Income tax benefit / (expenses)
311 (1,889 ) (387 ) (52 ) 573 (2,700 ) (360 )
Minority interest (319 ) 344 828 111 (266 ) 1,067 142








Net income (loss) 24,192 20,549 59,621 7,957 72,870 77,638 10,362








Net income attributed to ordinary shareholders
20,517 20,549 59,621
7,957 69,195 77,638 10,362








Net income/ (loss) per share

Basic 0.20 0.09 0.25 0.03 0.69 0.32 0.04
Diluted 0.14 0.09 0.25 0.03 0.55 0.32 0.04

Shares used in computation
Basic net income per share
100,350,000 240,024,754 240,024,754 240,024,754 100,350,000 240,024,754 240,024,754
Diluted net income per share
175,633,633 240,024,754 240,024,754 240,024,754 131,624,178 240,024,754 240,024,754


Net income/ (loss) per ADS

Basic 1.02 0.43 1.24 0.17 3.45 1.62 0.22
Diluted 0.69 0.43 1.24 0.17 2.77 1.62 0.22

Shares used in computation
Basic net income per ADS
20,070,000 48,004,951 48,004,951 48,004,951 20,070,000 48,004,951 48,004,951
Diluted net income per ADS
35,126,727 48,004,951 48,004,951 48,004,951 26,324,836 48,004,951 48,004,951
SOLARFUN POWER HOLDINGS CO., LTD.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of Renminbi ("RMB") and U.S. dollars ("US$"),

except for number of shares and per share data)


December 31 June 30 September 30 September 30
2006 2007 2007 2007
RMB RMB RMB US$

Assets
Current assets:
Cash and cash equivalents 1,137,792 447,940 345,448 46,104
Restricted cash 33,822 24,352 34,171 4,560
Accounts receivable, net 147,834 360,343 681,914 91,009
Inventories, net 372,504 411,344 522,955 69,794
Advance to suppliers 238,178 397,394 588,371 78,525
Other current assets 75,525 86,608 148,551 19,826
Deferred tax assets 3,400 3,891 5,214 696
Amount due from related parties 153 - 3,008 402
Amount due from shareholders 578 - - -





Total current assets 2,009,786 1,731,872 2,329,633 310,916





Non-current assets:
Fixed assets – net 207,449 397,811 525,880 70,185
Intangible assets – net 12,897 12,766 161,334 21,532
Long-term investment 300 300 300 40





Total non-current assets 220,646 410,877 687,515 91,757





Total assets 2,230,432 2,142,749 3,017,148 402,673





Liabilities preference shares and shareholders’ equity
Current liabilities:
Short-term bank borrowings 379,900 200,000 752,887 100,481
Long-term bank borrowings, current portion 16,000 16,000 16,000 2,135
Accounts payable 51,452 133,807 146,400 19,539
Notes payable 14,020 17,800 5,000 667
Accrued expenses and other liabilities 33,619 44,791 71,531 9,547
Customer deposits 17 940 84,825 11,321
Amount due to related parties 32,058 2,259 18,971 2,532





Total current liabilities 527,066 415,597 1,095,613 146,222





Non-current liabilities:
Deferred tax liability 38,633 5,156
Long-term bank borrowings, non-current portion 15,000 7,000 7,000 934





Commitments and contingencies
Minority interests 10,151 9,912 100,496 13,412





Shareholders’ Equity
Ordinary shares
(par value US$0.0001 per share; 400,000,000 shares authorized; 100,350,000 shares and 239,994,754 shares issued and outstanding at December 31, 2005 and 2006, respectively 193 193 193 26
Additional paid-in capital 1,565,524 1,579,525 1,585,069 211,546
Statutory reserves 16,024 20,884 28,309 3,778
Retained earnings 96,474 109,638 161,835 21,599





Total shareholders’ equity 1,678,215 1,710,240 1,775,406 236,948





Total liabilities, preference shares and shareholders’ equity 2,230,432 2,142,749 3,017,148 402,673






The conversion in this release of Renminbi into U.S. dollars is made solely for the convenience of the reader, and 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 September 28, 2007, which was RMB7.4928 to US$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 September 28, 2007, or at any other date. The percentages stated in this press release are calculated based on Renminbi amounts

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From: OmertaSoldier1/24/2008 12:50:51 PM
   of 79
 
Six Chinese Ministries Promote Digital Television Industry
January 24, 2008
Six Chinese ministries, including the National Development and Reform Commission, Ministry of Science and Technology, Ministry of Finance, Ministry of Information Industry, State Administration of Taxation and the State Administration of Radio, Film and Television, have jointly compiled a document called "Several Policies on Encouraging the Development of Digital Television Industry", which says that from February 1, 2008 the six ministries will work together to promote the development of China's digital television industry.

The policies once again stress the goals of China's digital television development. In 2008, China will broadcast the Beijing Olympics to the world through high-definition television programs, and by 2010, the existing cable television in cities above county levels in eastern and middle parts of China as well as in most of cities over county level in western parts of the country will be digitalized. By 2015, the analog signals within the country will be generally stopped. In the meantime, the policies emphasize the continued amalgamation of the three networks of Internet, television and telecom.

To realize the above goals, NDRC, MII and SARFT will be responsible for organizing special projects for implementing digital television services. Support will be given to digital TV related enterprises' listings and more investment will be injected into them.

According to China's national strategy, the country aims to shift from a major television manufacturer to a digital television power during the development of digital television industry. The policies show that by 2010, the annual sales of China's digital television sets and related products will reach RMB250 billion and the export volume will reach US$10 billion. By 2015, China's digital television industry scale and technology level will rank among the top in the world and it will become one of the world's largest digital television set and key components development and production bases.sites where readers can share and discover new web pages.

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From: OmertaSoldier2/21/2008 6:14:13 PM
   of 79
 
Press Release Source: China Digital TV Holding Co., Ltd.

China Digital TV Announces Unaudited Fourth Quarter and Full Year 2007 Results
Thursday February 21, 5:30 pm ET

BEIJING, Feb. 21 /Xinhua-PRNewswire/ -- China Digital TV Holding, Co. Ltd. (NYSE: STV - News; "China Digital TV" or the "Company"), the leading provider of conditional access ("CA") systems to China's rapidly growing digital television market, announced today its unaudited financial results for the fourth quarter and full year ended December 31, 2007.

Highlights for Fourth Quarter 2007
-- Total revenues in the fourth quarter were US$19.7 million, an increase
of 102.4% from the corresponding period in 2006 and 36.4% from the
third quarter of 2007.
-- Net income for the fourth quarter increased to US$12.9 million, an
increase of 235.4% from the corresponding period in 2006 and 46.5% from
the third quarter of 2007.
-- Basic earnings per ADS (each ADS represents one ordinary share) were
US$0.23.
-- China Digital TV shipped 2.6 million smart cards during the fourth
quarter, an increase of 37.6% from the third quarter of 2007.

Highlights for Full Year 2007
-- Total revenues in full year 2007 increased to US$55.8 million, an
82.0% increase from 2006.
-- Net income in full year 2007 increased to US$33.8 million, a 160.3%
increase from 2006.
-- Basic earnings per ADS (each ADS represents one ordinary share) for
2007 were US$0.74.
-- China Digital TV shipped 7.3 million smart cards in 2007, an increase
of 85.5% from 2006.
-- In full year 2007, China Digital TV entered into 47 new contracts to
install CA systems.

"In 2007, we delivered significant top and bottom line growth," said Mr. Jianhua Zhu, China Digital TV's chief executive officer. "Our nationwide scale and ability to deliver customized solutions and technical assistance to China's numerous digital television network operators drove our market share (as measured by the number of smart cards shipped) to approximately 51.5% during the last quarter of 2007. As of December 31, 2007 our total smart cards shipped to date were 13 million, solidifying our position as the leader in China's CA market. We continue to invest heavily in research and development and sales and marketing with the goal of ensuring strong future growth."

During the fourth quarter, China Digital TV established a subsidiary, Beijing Novel-Super Media Investment Co., Ltd., to develop and market value- added services to network operators, including Electronic Program Guide-based advertising and PC card-based services, which enable PCs to function as HDTVs with DVR features.

Dr. Zengxiang Lu, China Digital TV's chairman and chief strategy officer, commented, "We expect that this new venture will allow us to capitalize on our leading position in the CA market to capture the next wave of growth opportunities as digitalization attains nationwide scale in China. A substantial amount of our research and development expenditure is devoted to developing a broad selection of value-added services that will benefit from a more sophisticated future digital television market and I am confident in our ability to create long-term shareholder value."

Fourth Quarter 2007 Results

(Note: Unless otherwise stated, all financial statement amounts used in this press release are based on U.S. GAAP.)

For the fourth quarter of 2007, China Digital TV reported net revenues of US$19.5 million, an increase of 103.0% from US$9.6 million in the fourth quarter of 2006, and 36.1% from US$14.4 million in the third quarter of 2007. The increase in net revenues was primarily due to increased shipments of smart cards during the quarter.

In the fourth quarter of 2007, China Digital TV entered into 16 new contracts to install CA systems, bringing the total number of CA contracts signed in 2007 to 47.

Revenues from smart cards and related products were US$17.9 million in the fourth quarter of 2007, an increase of 113.9% from the same period of 2006 and 39.6% from US$12.8 million in the third quarter of 2007. Sales of smart cards and related products made up 90.8% of the total revenues for this quarter. China Digital TV shipped 2.6 million smart cards in the fourth quarter 2007, an increase of 109.6% from the same period of 2006 and 37.6% from the third quarter of 2007, reflecting accelerated adoption of digital television across China.

Revenues from services were US$1.8 million in the fourth quarter 2007, an increase of 32.5% from the same period in 2006 and 11.1% from the third quarter 2007. Service revenue was 9.2% of total revenues for this quarter.

Gross profit for the fourth quarter of 2007 was US$15.6 million, an increase of 115.0% from US$7.3 million in the same period of 2006 and 30.2% from US$12.0 million in the third quarter of 2007. Gross margin was 79.8% for the fourth quarter of 2007, compared to 75.3% in the same period in 2006 and 83.4% in the third quarter of 2007. The year-over-year increase was mainly due to the Company's ability to maintain a relatively stable ASP and get favorable purchasing prices from computer chip providers; the quarter-over-quarter decrease was mainly due to an increase in the cost of goods sold other than the computer chips.

Operating expenses for the fourth quarter of 2007 were US$5.0 million, an increase of 148.2% from US$2.0 million in the same period of 2006 and 90.1% from US$2.6 million in the third quarter of 2007.

-- Research and development expenses for this quarter increased 79.9% to
US$1.5 million from US$0.8 million in the same period of 2006 and 23.7%
from US$1.2 million in the third quarter of 2007. The year-over-year
and quarter-over-quarter increases were primarily due to increased R&D
headcount.
-- Sales and marketing expenses for the fourth quarter of 2007 increased
223.0% to US$1.7 million from US$0.5 million in the same period of 2006
and 97.6% from US$0.8 million in the third quarter of 2007. The year-
over-year and quarter-over-quarter increases were primarily due to
increased sales and marketing headcount and expanded marketing
campaigns.
-- General and administrative expenses for the fourth quarter of 2007
increased 174.2% to US$1.9 million from US$0.7 million in the same
period of 2006 and 211.5% from US$0.6 million in the third quarter of
2007. The year-over-year and quarter-over-quarter increases were
primarily due to headcount increase and professional charges related to
the Company's IPO in the fourth quarter of 2007.

Operating margin, defined as income from operations divided by net revenue, for the fourth quarter of 2007 was 54.0%, compared to 54.3% for the same period of 2006 and 64.9% for the third quarter of 2007.

Other income for the quarter included a one-off cash reward of US$0.3 million from the local government of Beijing received in December 2007 following the consummation of our IPO. The reward was made in accordance with local governmental policies.

Net income for the fourth quarter of 2007 was US$12.9 million, an increase of 235.4% from US$3.8 million in the same period of 2006 and 46.5% from US$8.8 million in the third quarter of 2007. Fourth quarter 2007 basic and diluted earnings per ADS (each ADS represents one ordinary share) were US$0.23 and US$0.22, respectively.

Non-GAAP net income for the fourth quarter of 2007 was US$13.2 million, an increase of 208.4% from US$4.3 million in the same period of 2006 and 42.8% from US$9.2 million in the third quarter of 2007.

Full Year 2007 Results

Total net revenues in 2007 increased 82.6% to US$55.5 million from US$30.4 million in 2006, primarily due to an increase in shipments of smart cards.

The Company entered into a total of 47 new contracts to install CA systems during 2007.

Revenues from smart cards and related products in 2007 were US$49.7 million, an increase of 88.1% from 2006. Sales of smart cards and related products made up 89.2% of total revenues for the year. China Digital TV shipped 7.3 million smart cards over full year 2007, an increase of 85.5% from 2006, reflecting increased digitalization across China.

Revenues from services were US$6.0 million in 2007, an increase of 43.7% over 2006. Revenues from services represented 10.8% of total revenues for the year of 2007.

Gross profit was US$45.2 million in 2007, an increase of 90.1% from US$23.8 million in 2006. Gross margin was 81.5% in 2007, compared to 78.3% in 2006, indicating the Company's ability to maintain a relatively stable average selling price while obtaining favorable purchasing prices of computer chips.

Operating expenses in 2007 were US$12.1 million, an increase of 128.6% from US$5.3 million in 2006.

Research and development expenses in 2007 increased 109.0% to US$4.6 million from US$2.2 million in 2006. The year-over-year increase was primarily due to new R&D hires.

Sales and marketing expenses in 2007 increased 103.4% to US$3.8 million from US$1.8 million in 2006. The year-over-year increase was primarily due to new sales and marketing hires and expanded marketing campaigns.

General and administrative expenses in 2007 increased 201.8% to US$3.7 million from US$1.2 million in 2006. The year-over-year increase was primarily due to increased administrative headcount as well as professional charges related to the Company's IPO in the fourth quarter of 2007

Operating margin, defined as income from operations divided by net revenue, in 2007 was 59.7%, compared to 60.9% in 2006.

Net income in 2007 was US$33.8 million, an increase of 160.3% from US$13.0 million in 2006. Basic and diluted earnings per ADS (each ADS represents one ordinary share) in 2007 were US$0.74 and US$0.68, respectively.

Outlook for the first quarter ended March 31, 2008

Based on information available on February 21, 2008, China Digital TV expects its net revenues for the first quarter of 2008 to be in the range of US$15 million to US$17 million, representing year-over-year growth in the range of 43.9% to 63.1%.

Outlook for the full year 2008

Based on information available on February 21, 2008, China Digital TV expects its net revenues for the full year 2008 to be in the range of US$79 million to US$84 million, representing year-over-year growth in the range of 42.5% to 51.5%

The Company noted that its customers typically defer major purchasing decisions during the first quarter of each year as the result of a number of events that occur in that period. The annual meeting of the China Content Broadcasting Network, a major trade fair for the digital television, broadband and related industries usually takes place in March. Cable television network operators, as well as other companies in television and related industries, carefully observe and analyze this meeting for potential market trends. Additionally, Chinese Lunar New year falls in late January to early February of every year during which customers tend not to make major purchases As a result, the revenue generated in the first quarter of a year is usually lower than that of the preceding fourth quarter.

Conference Call Information

China Digital TV's management will hold a conference call at 7 p.m. on February 21, 2008 U.S. Eastern Time (8 a.m. on February 22, 2008 Beijing/Hong Kong time).

Dial-in details for this conference call are as follows:
United States Toll Free: 1-800-510-9691
International: 1-617-614-3453
Hong Kong: 852-3002-1672

Please dial-in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode for all regions is "China Digital TV Earnings Call."

Additionally, a live and archived webcast of this conference call will be accessible through the Investor Relations section of China Digital TV's website at ir.chinadtv.cn .

A replay may be accessed by phone at the following number until March 22, 2008:

United States: 1-888-286-8010
International: 1-617-801-6888
Passcode: 92063111

Safe Harbor Statements

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995.

These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "may," "should" and similar expressions. Such forward-looking statements include, without limitation, statements regarding the outlook for the first quarter of 2008 and comments by management in this announcement about trends in the CA systems, digital television, cable television and related industries in the PRC and China Digital TV's strategic and operational plans. China Digital TV may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about China Digital TV's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained or implied in any forward-looking statement, including but not limited to the following: competition in the CA systems, digital television, cable television and related industries in the PRC and the impact of such competition on prices, our ability to implement our business strategies, changes in technology, the structure of the cable television industry or television viewer preferences, changes in PRC laws, regulations or policies with respect to the CA systems, digital television, cable television and related industries, including the extent of non-PRC companies' participation in such industries, and changes in political, economic, legal and social conditions in the PRC, including the government's policies with respect to economic growth, foreign exchange and foreign investment.

Further information regarding these and other risks and uncertainties is included in our registration statement on Form F-1 and other documents filed with the U.S. Securities and Exchange Commission. China Digital TV does not assume any obligation to update any forward-looking statements, which apply only as of the date of this press release.

About China Digital TV

Founded in 2004, China Digital TV is the leading provider of conditional access ("CA") systems to China's rapidly growing digital television market. CA systems enable television network operators to manage the delivery of customized content and services to their subscribers. China Digital TV conducts substantially all of its business through its subsidiary, Beijing Super TV Co., Ltd., and its affiliate, Beijing Novel-Tongfang Digital TV Technology Co., Ltd.

For more information please visit the Investor Relations section of China Digital TV's website at ir.chinadtv.cn .

For investor and media inquiries, please contact:

In China:
Helen Plummer
Ogilvy Public Relations Worldwide (Beijing)
Tel: +86-10-8520-3090
Email: helen.plummer@ogilvy.com

In the United States:
Jessica Cohen
Ogilvy Public Relations Worldwide (New York)
Tel: +1-646-460-9989
Email: jessica.cohen@ogilvy.com

China Digital TV Holding Co., Ltd.
Unaudited Consolidated Statements of Operations

( in U.S. dollars )

For the three months ended
December 31, September 30, December 31,
2007 2007 2006
Revenues:
Products 17,851,192 12,784,867 8,347,469
Services 1,815,085 1,633,471 1,370,351
Total revenues 19,666,277 14,418,338 9,717,820
Business taxes (121,347) (61,292) (88,041)
Net revenue 19,544,930 14,357,046 9,629,779

Cost of Revenues:
Products (3,613,084) (1,803,858) (1,851,086)
Services (338,683) (580,362) (524,387)
Total Cost of Revenues (3,951,767) (2,384,220) (2,375,473)
Gross Profit 15,593,163 11,972,826 7,254,306

Operating expenses:
Research and development
expenses (1,485,700) (1,201,355) (825,765)
Sales and marketing
expenses (1,665,807) (842,925) (515,684)
General and
administrative expenses (1,886,111) (605,503) (687,921)
Total Operating Expense (5,037,618) (2,649,783) (2,029,370)

Income from operation 10,555,545 9,323,043 5,224,936
Interest income 2,521,562 145,805 61,487
Other income 262,958 -- --
Recognition of change in
the fair value of
warrants -- -- (1,351,592)
Income before income tax 13,340,065 9,468,848 3,934,831
Income tax benefits /
(expenses)
Income tax-current (612,121) (726,734) --
Income tax-deferred 148,062 41,044 17,341
Net income before minority
interest and net loss
from equity investment 12,876,006 8,783,158 3,952,172
Minority interest -- -- (115,063)
Net loss from equity
investment (6,022) -- --
Net income 12,869,984 8,783,158 3,837,109
EPS - Basic ordinary shares 0.23 0.20 0.02
EPS - Basic preferred shares 0.30 0.20 0.30
EPS - Diluted ordinary shares 0.22 0.19 0.02

China Digital TV Holding Co., Ltd.
Unaudited Consolidated Statements of Operations

( in U.S. dollars )

For the years ended
December 31, December 31, December 31,
2007 2006 2005
Revenues:
Products 49,741,028 26,443,229 9,290,949
Services 6,011,181 4,181,890 3,855,317
Total revenues 55,752,209 30,625,119 13,146,266
Business taxes (298,562) (255,478) (60,228)
Net revenue 55,453,647 30,369,641 13,086,038

Cost of Revenues:
Products (8,099,977) (4,726,154) (1,936,047)
Services (2,135,357) (1,858,578) (1,967,357)
Total Cost of Revenues (10,235,334) (6,584,732) (3,903,404)
Gross Profit 45,218,313 23,784,909 9,182,634

Operating expenses:
Research and development
expenses (4,642,691) (2,220,868) (1,817,846)
Sales and marketing
expenses (3,758,009) (1,847,377) (1,327,629)
General and
administrative expenses (3,705,778) (1,228,062) (684,336)
Total Operating Expense (12,106,478) (5,296,307) (3,829,811)

Income from operation 33,111,835 18,488,602 5,352,823
Interest income 2,789,633 279,137 116,657
Other income 262,958 -- --
Recognition of change in
the fair value of warrants -- (5,406,374) (17,601)
Income before income tax 36,164,426 13,361,365 5,451,879
Income tax benefits /
(expenses)
Income tax-current (2,554,235) -- --
Income tax-deferred 211,509 58,940 66,215
Net income before minority
interest and net loss
from equity investment 33,821,700 13,420,305 5,518,094
Minority interest -- (430,082) (974,773)
Net loss from equity
investment (6,022) -- --
Net income 33,815,678 12,990,223 4,543,321
EPS - Basic ordinary shares 0.74 0.24 0.11
EPS - Basic preferred shares 0.66 0.54 0.11
EPS - Diluted ordinary shares 0.68 0.21 0.11

China Digital TV Holding Co., Ltd.
Unaudited Consolidated Balance Sheet

( in U.S. dollars )

December 31, September 30, December 31,
ASSETS 2007 2007 2006
Current assets:
Cash and cash equivalents 228,957,561 25,926,100 21,137,216
Restricted cash 706,222 -- 51,238
Deposits with maturity over
three months 17,948,246 -- --
Accounts receivable 6,118,405 8,424,822 2,862,276
Inventories, net 2,966,639 4,559,108 2,759,209
Prepaid expenses and other
current assets 1,253,864 1,888,440 1,349,195
Amounts due from related
parties 1,277,022 1,427,358 1,668,036
Deferred costs-current 540,866 511,184 580,157
Deferred income taxes-current 184,181 72,623 62,864
Total current assets 259,953,006 42,809,635 30,470,191
Property and equipment, net 1,379,496 1,035,465 537,515
Intangible assets, net 1,001,837 1,067,266 1,464,389
Goodwill 466,938 453,498 432,422
Long-term investment 395,760 402,029 --
Deferred costs-non-current 487,727 396,377 600,357
Deferred income
taxes-non-current 50,454 16,563 --
Total assets 263,735,218 46,180,833 33,504,874

LIABILITIES, REDEEMABLE
CONVERTIBLE PREFERRED SHARES
AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable 485,142 430,671 884,798
Accrued expenses and other
current liabilities 4,757,235 1,480,474 1,360,456
Deferred revenue-current 4,784,427 7,774,937 6,899,521
Dividend payable -- -- 11,300,000
Income tax payable 721,654 850,241 --
Total current liabilities 10,748,458 10,536,323 20,444,775
Deferred revenue-non-current 1,135,857 886,667 1,079,493
Deferred income
taxes-non-current -- -- 39,739
Total Liabilities 11,884,315 11,422,990 21,564,007
Minority interest 4,000,000 4,000,000 4,000,000
Series A convertible
redeemable preferred shares -- 16,078,197 16,078,197
Shareholders'
equity/(deficiency):
Ordinary shares 28,648 17,000 17,000
Additional paid-in capital 224,863,356 5,917,571 4,887,267
Statutory reserve 5,687,845 2,353,373 2,353,373
Retained Earning 14,344,386 4,808,874 (16,136,820)
Accumulated other
comprehensive income 2,926,668 1,582,828 741,850
Total shareholders'
equity/(deficiency) 247,850,903 14,679,646 (8,137,330)
TOTAL LIABILITIES, MINORITY
INTEREST, SERIES A CONVERTIBLE
REDEEMABLE PREFERRED SHARES
AND SHAREHOLDERS' EQUITY 263,735,218 46,180,833 33,504,874

China Digital TV Holding Co., Ltd.
Reconciliation of Non.GAAP Results
( in U.S. dollars )

For the three months ended
December 31, September 30, December 31,
2007 2007 2006

GAAP Net Income 12,869,984 8,783,158 3,837,109
Non.cash share.based 230,489 343,433 278,063
compensation
Amortization of
intangible assets 97,397 118,041 163,779
Non.GAAP Net Income 13,197,870 9,244,632 4,278,951

For the years ended
December 31, December 31, December 31,
2007 2006 2005

GAAP Net Income 33,815,678 12,990,223 4,543,321
Non.cash share.based 1,260,806 337,620 212,480
compensation
Amortization of
intangible assets 542,613 269,570 --
Non.GAAP Net Income 35,619,097 13,597,413 4,755,801

--------------------------------------------------------------------------------
Source: China Digital TV Holding Co., Ltd.

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From: OmertaSoldier3/12/2008 9:49:45 AM
   of 79
 
JA Solar Reports Fourth Quarter and Full Year 2007 Results
Wednesday March 12, 7:00 am ET

Fourth Quarter 2007 Highlights

* Revenue of RMB 1.05 billion (US$ 144.2 million), an increase
of 201.0% over Q4 2006
* Income from operations of RMB 132.9 million (US$ 18.2 million),
an increase of 79.3% over Q4 2006
* Total gross profit of RMB 222.7 million (US$ 30.5 million)
compared to RMB 83.7 million (US$ 11.5 million) in Q4 2006
* Gross margin was 21.2% compared to 23.9% in Q4 2006
* Net income of RMB 0.64 (US$ 0.09) per diluted ADS, which
included a foreign exchange loss of RMB 57.3 million (US$ 7.9
million) compared to RMB 0.82 (US$ 0.11) per diluted ADS,
which included a foreign exchange gain of RMB 1.0 million
(US$ 0.1 million) in Q4 2006
* Shipped 50.2 MW, up 266.4%over Q4 2006

Full Year 2007 Highlights

* Full year 2007 revenues of RMB 2.69 billion (US$ 369.3
million), an increase of 286.8% over 2006
* Income from operations of RMB 446.4 million (US$ 61.2
million), an increase of 240.0% over 2006
* Total gross profit of RMB 600.9 million (US$ 82.4 million)
compared to RMB 172.3 million (US$ 23.6 million) in 2006
* Gross margin was 22.3% compared to 24.7% in 2006
* Net income of RMB 2.93 (US$ 0.40) per diluted ADS compared
to RMB 1.08 (US$ 0.15) per diluted ADS for the full year 2006
* Shipped 132.4 MW in 2007, an increase of 403.4% from 2006
* Increased annual manufacturing capacity from 75MW to 175MW

Outlook for 2008

* Expect Full Year 2008 revenues in the range of RMB 7.22
billion (US$ 990.0 million) to RMB 8.02 billion (US$ 1.10
billion)
* Expect 2008 gross margin to be above 20%
* Expect to break ground on new solar cell manufacturing
facility in Yangzhou, China during second half 2008
* Raising annual production capacity to 500 MW from 425 MW
by the end of 2008
* Expect 2008 production output of 340 MW

ADVERTISEMENT


HEBEI, China, March 12, 2008 (PRIME NEWSWIRE) -- JA Solar Holdings Co., Ltd. (``JA Solar'', ``the Company'') (NasdaqGM:JASO - News) today reported financial results for the fourth quarter and year ended December 31, 2007.

Fourth Quarter 2007 Results

Total revenues for the fourth quarter 2007 were RMB 1.05 billion (US$ 144.2 million), an increase of 201.0% from fourth quarter 2006 quarter revenues of RMB 349.4 million (US$ 47.9 million), and an increase of 23.7% from third quarter 2007 revenues of RMB 850.0 million (US$ 116.5 million).

Total gross profit for the fourth quarter 2007 was RMB 222.7 million (US$ 30.5 million) compared to RMB 83.7 million (US$ 11.5 million) in the fourth quarter 2006, and RMB 199.3 million (US$ 27.3 million) in the third quarter 2007. Gross margin was 21.2% in the fourth quarter of 2007 compared to 23.9% in the fourth quarter of 2006, and 23.5% in the third quarter of 2007.

Net income available to ordinary shareholders for the fourth quarter 2007 was RMB 98.3 million (US$ 13.5 million) compared to a net income available to ordinary shareholders of RMB 66.9 million (US$ 9.2 million) for the fourth quarter 2006, and net income available to ordinary shareholders of RMB 165.9 million (US$ 22.7 million) for the third quarter 2007.

For the fourth quarter 2007 basic and diluted earnings per ADS were RMB 0.65 (US$ 0.09) and RMB 0.64 (US$ 0.09), respectively. The fourth quarter 2007 included share-based compensation expense of RMB 61.2 million (US$ 8.4 million) and foreign exchange loss of RMB 57.3 million (US$ 7.9 million).

Capital expenditures were RMB 128.9 million (US$ 17.7 million) in the fourth quarter 2007, as compared to RMB 23.6 million (US$ 3.2 million) in the fourth quarter 2006, and RMB 144.3 million (US$ 19.8 million) in the third quarter 2007. Depreciation and amortization expenses in the fourth quarter 2007 were RMB 11.9 million (US$ 1.6 million), as compared to RMB 4.9 million (US$ 0.7 million) in the fourth quarter 2006, and RMB 10.7 million (US$ 1.5 million) in the third quarter 2007.

As of December 31, 2007, JA Solar had cash and cash equivalents of RMB 1.15 billion (US$ 157.0 million) compared with RMB 95.8 million (US$ 13.1 million) at the end of the fourth quarter 2006, and RMB 0.79 billion (US$ 108.9 million) at the end of the third quarter 2007. Short term debt increased to RMB 200.0 million (US$ 27.4 million) at the end of the fourth quarter 2007 from RMB 150.0 million (US$ 20.6 million) at the end of the fourth quarter 2006, and RMB 150.0 million (US$ 20.6 million) at the end of third quarter 2007.

Summary of megawatts produced and shipped (includes cell processing service)

---------------------------------------------------------------
Three months ended
---------------------------------------------------------------
Dec. 31, Sept. 30, Dec. 31,
Megawatts 2006 2007 2007
---------------------------------------------------------------
Produced 17.1MW 44.6MW 48.7MW
---------------------------------------------------------------
Shipped 13.7MW 43.8MW 50.2MW
---------------------------------------------------------------
Cost per
watt
excluding
wafer cost US$0.228/Wp US$ 0.192/Wp US$ 0.190/Wp
---------------------------------------------------------------

2007 Full Year Results

Revenues for the full year 2007 were RMB 2.69 billion (US$ 369.3 million), an increase of 286.8% from the full year 2006 revenues of RMB 696.5 million (US$ 95.5 million). The increase was principally due to continued strong growth in market demand for PV industry and our ability to expand the Company's production capacity to support the business growth.

Total gross profit for 2007 was RMB 600.9 million (US$ 82.4 million) compared to RMB 172.3 million (US$ 23.6 million). Total gross margin was 22.3% for 2007 compared to 24.7% for 2006.

Net income available to ordinary shareholders for the full year 2007 was RMB 398.2 million (US$ 54.6 million) compared to a net income available to ordinary shareholders of RMB 86.4 million (US$ 11.8 million) for the full year 2006.

For the full year 2007 basic and diluted earnings per ADS were RMB 2.96 (US$ 0.41) and RMB 2.93 (US$ 0.40), respectively.

The full year 2007 included share-based compensation expense of RMB 88.8 million (US$ 12.2 million) and foreign exchange loss of RMB 112.8 million (US$ 15.5 million).Diluted earnings per ADS calculations for the full year 2007 were based on 136.72 million weighted average numbers of ADSs outstanding, compared to 80.17 million ADSs in 2006.

Capital expenditures were RMB 421.8 million (US$ 57.8 million) for the full year 2007, as compared to RMB 107.6 million (US$ 14.8 million) for the full year 2006. The increase was primarily due to expanding of new production capacity. Depreciation and amortization expenses for the full year 2007 were RMB 34.1 million (US$ 4.7 million), as compared to RMB 11.2 million (US$ 1.5 million) for the full year 2006.

Effective from February 7, 2008, the Company changed its ADS to ordinary share ratio from the one ADS for every three ordinary shares to one ADS for every one ordinary share. Both the basic and diluted earnings per ADS and both the basic and diluted weighted average number of ADSs outstanding for all periods presented have been restated to conform to the current ADS ratio accordingly.

The conversion of Renminbi into U.S. dollars for the full year of 2007 and the fourth quarter of 2007 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 December 31, 2007, which was RMB 7.2946 to US$1.00. 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 December 31, 2007, or at any other date. The percentages stated in this press release are calculated based on Renminbi.

``We once again achieved record revenues in the fourth quarter of 2007 and extraordinary business growth for the full year,'' said Samuel Yang, JA Solar's Chief Executive Officer. ``During the year, we increased our annual production capacity from 75MW to 175MW, and achieved impressive throughput and yield from our cell lines without compromising profitability. The several key additions in talent to our teams in sales and marketing, technology, and at the executive level helped ensure the smooth execution of our expansion. Our strategic decision to expand our supply sources and our practice of holding JA Solar's products to one of the highest performance standards in the industry were also contributing factors to our success. On the supply side, we were able to expand our base of major suppliers from two to four and contractually secured sufficient wafer supply to cover our anticipated 2008 production capacity.''

``In 2008 we plan to build on JA Solar's strong brand and technology platform through increased sales and marketing efforts, greater investment in R&D, and continued expansion of our production capacity. We have already broken ground for ten new cell lines in Hebei, and plan to break ground for another ten cell lines at a new facility in Yangzhou during the second half of 2008. On the technology front, we plan to open a research laboratory in Silicon Valley, California. We believe the true driving force for broader application of solar technology and the achievement of grid parity is low cost. By 2010, JA Solar strives to be a cost leader in the industry and establish the industry cost benchmark through technical innovation and operational efficiency. We have enormous confidence that our production scale and execution capability would position JA Solar to achieve aggressive cost reductions as we address a rapidly evolving market.''

JA Solar's CFO, Herman Zhao, said, ``In 2007 JA Solar demonstrated our financial discipline through the ability to more than double our annual production capacity while achieving impressive top line growth and profitability. While our performance was strong in Q4, we experienced foreign exchange losses in the quarter, which impacted our bottom line. Due to the depreciation of the U.S. dollar against the RMB in Q4, we recorded foreign exchange losses of RMB 57.3 million (US$ 7.9 million) for the quarter. Going forward we plan to manage the foreign exchange impact to our bottom line through focused initiatives which involve converting foreign currencies into RMB, currency hedging, diversification of our international supplier base, and the addition of pricing clauses in our international sales contracts. While the economic environment is expected to remain volatile, we expect another record year for our Company in terms of growth and profitability in 2008. We are fully committed to bringing further value to our shareholders in 2008 and future years.''

2008 Outlook

Based on current customer demand and market forecasts, we expect revenues for the full year 2008 in the range of RMB 7.22 billion (US$ 990.0 million) to RMB 8.02 billion (US$ 1.10 billion). Gross margins for 2008 are expected to be above 20%.

We expect total production output of approximately 340MW for 2008, with a total annual production capacity of 500MW, which is above our previous annual production capacity guidance of 425MW.

The capital expenditures are expected to be RMB 966.8 million (US$ 132.5 million), primarily for capacity expansion. R&D expense is expected to be RMB 36.6 million (US$ 5.0 million).

Investor Conference Call / Webcast Details

A conference call has been scheduled for 8:30p.m. on Wednesday, March 12, 2007 (in Hebei), which will be 8:30a.m. on Wednesday, March 12 in New York. During the call, time will be set-aside for analysts and interested investors to ask questions of executive officers.

The call may be accessed by dialing 201-689-8560. A live webcast of the conference call will be available on the Company's website at jasolar.com. The playback will be available beginning two hours after the live call and will be accessible by dialing 201-612-7415. The account number to access the replay is 3055 and the pass code is 275768.

About JA Solar Holdings Co., Ltd.

Based in Hebei, China, JA Solar Holdings Co., Ltd. is an emerging and 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, please visit jasolar.com.

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.

JA Solar Holdings Co., Ltd.
Condensed Consolidated Statements of Operations

(Unaudited)

Three months ended
----------------------------------------------------
December 31, 2006 September 30, 2007
RMB USD RMB USD
----------------------------------------------------
Revenue from
sale of goods
Solar products
to third
parties 309,618,090 42,444,835 803,948,453 110,211,451
Solar products
to related
parties 39,785,881 5,454,155 4,235,069 580,576
Solar cells
processing -- -- 41,811,183 5,731,799
------------ ----------- ------------ ------------
Total revenues 349,403,971 47,898,990 849,994,705 116,523,826
------------ ----------- ------------ ------------
Cost of
revenues
Solar products (265,733,652) (36,428,817) (639,550,780) (87,674,551)
Solar cells
processing -- -- (11,112,156) (1,523,340)
------------ ----------- ------------ ------------
Total cost
of revenues (265,733,652) (36,428,817) (650,662,936) (89,197,891)
------------ ----------- ------------ ------------
Gross profit 83,670,319 11,470,173 199,331,769 27,325,935
------------ ----------- ------------ ------------
Selling,
general and
administrative
expenses (8,886,291) (1,218,201) (27,813,372) (3,812,871)
Research and
development
expenses (645,732) (88,522) (1,109,276) (152,068)
------------ ----------- ------------ ------------
Total
operating
expenses (9,532,023) (1,306,723) (28,922,648) (3,964,939)
------------ ----------- ------------ ------------
Income from
operations 74,138,296 10,163,450 170,409,121 23,360,996
Interest
expense (2,219,396) (304,252) (1,321,305) (181,135)
Interest
income 398,977 54,695 13,992,625 1,918,217
Other income 64,414 8,830 1,735,985 237,982
Foreign
exchange
gain/(loss) 1,043,758 143,086 (18,952,072) (2,598,096)
------------ ----------- ------------ ------------
Income before
income taxes 73,426,049 10,065,809 165,864,354 22,737,964
Income tax
benefit/
(expense) -- -- -- --
------------ ----------- ------------ ------------
Net income 73,426,049 10,065,809 165,864,354 22,737,964
------------ ----------- ------------ ------------
Preferred
shares
accretion (1,113,799) (152,688) -- --
Preferred
shares
beneficial
conversion
charge -- -- -- --
Allocation of
income to
participating
preferred
shareholders (5,449,328) (747,036) -- --
------------ ----------- ------------ ------------
Net income
available to
ordinary
shareholders 66,862,922 9,166,085 165,864,354 22,737,964
============ =========== ============ ============
Net income
per ordinary
shares
Basic 0.84 0.11 1.20 0.16
Diluted 0.82 0.11 1.18 0.16

Weighted
average
number of
ordinary
shares
outstanding:
Basic 80,000,000 80,000,000 138,270,000 138,270,000
Diluted 89,803,092 89,803,092 140,095,013 140,095,013

Net income
per ADS
Basic 0.84 0.11 1.20 0.16
Diluted 0.82 0.11 1.18 0.16

Weighted
average
number of ADS
outstanding:
Basic 80,000,000 80,000,000 138,270,000 138,270,000
Diluted 89,803,092 89,803,092 140,095,013 140,095,013

--------------------------------
December 31, 2007
RMB USD
--------------------------------

Revenue from sale of goods
Solar products to third parties 964,043,903 132,158,570
Solar products to related parties 56,581,075 7,756,570
Solar cells processing 30,946,942 4,242,445
-------------- ------------
Total revenues 1,051,571,920 144,157,585
-------------- ------------
Cost of revenues
Solar products (820,159,946) (112,433,848)
Solar cells processing (8,715,419) (1,194,777)
-------------- ------------
Total cost of revenues (828,875,365) (113,628,625)
-------------- ------------
Gross profit 222,696,555 30,528,960
-------------- ------------
Selling, general and
administrative expenses (88,286,415) (12,102,982)
Research and development expenses (1,461,299) (200,326)
-------------- ------------
Total operating expenses (89,747,714) (12,303,308)
-------------- ------------
Income from operations 132,948,841 18,225,652
Interest expense (1,497,516) (205,291)
Interest income 17,193,244 2,356,982
Other income 1,421,231 194,833
Foreign exchange gain/(loss) (57,304,623) (7,855,759)
-------------- ------------
Income before income taxes 92,761,177 12,716,417
Income tax benefit/(expense) 5,569,615 763,526
-------------- ------------
Net income 98,330,792 13,479,943
-------------- ------------
Preferred shares accretion -- --
Preferred shares beneficial
conversion charge -- --
Allocation of income to
participating preferred
shareholders -- --
-------------- ------------
Net income available to
ordinary shareholders 98,330,792 13,479,943
============== ============

Net income per ordinary shares
Basic 0.65 0.09
Diluted 0.64 0.09

Weighted average number of
ordinary shares outstanding:
Basic 150,794,647 150,794,647
Diluted 152,508,160 152,508,160

Net income per ADS
Basic 0.65 0.09
Diluted 0.64 0.09

Weighted average number of ADS
outstanding:
Basic 150,794,647 150,794,647
Diluted 152,508,160 152,508,160

Each ADS represents 1 ordinary share

JA Solar Holdings Co., Ltd.
Condensed Consolidated Statements of Operations

Year ended
------------------------------------------------------
December 31, 2006 December 31, 2007
RMB USD RMB USD
------------------------------------------------------
(Audited) (Conversion) (Unaudited) (Conversion)
------------------------------------------------------
Revenue from
sale of goods
Solar
products
to third
parties 565,327,330 77,499,428 2,532,417,761 347,163,348
Solar
products
to related
parties 131,130,774 17,976,417 62,205,840 8,527,656
Solar cells
processing -- -- 99,076,635 13,582,189
------------ ----------- -------------- -----------
Total
revenues 696,458,104 95,475,845 2,693,700,236 369,273,193
------------ ----------- -------------- -----------
Cost of
revenues
Solar
products (524,163,013) (71,856,306) (2,066,559,465) 283,299,902)
Solar cells
processing -- -- (26,232,337) (3,596,131)
------------ ----------- -------------- -----------
Total
cost of
revenues (524,163,013) (71,856,306) (2,092,791,802) (286,896,033)
------------ ----------- -------------- -----------
Gross
profit 172,295,091 23,619,539 600,908,434 82,377,160
------------ ----------- -------------- -----------
Selling,
general
and
admini-
strative
expenses (39,656,083) (5,436,361) (150,319,332) (20,606,933)
Research and
development
expenses (1,357,610) (186,112) (4,200,013) (575,770)
------------ ----------- -------------- -----------
Total
operating
expenses (41,013,693) (5,622,473) (154,519,345) (21,182,703)
------------ ----------- -------------- -----------
Income from
operations 131,281,398 17,997,066 446,389,089 61,194,457
Interest
expense (5,055,382) (693,031) (6,595,460) (904,156)
Interest
income 823,995 112,960 62,579,521 8,578,883
Other
income 64,414 8,830 5,225,569 716,361
Foreign
exchange
gain/
(loss) 1,300,008 178,215 (112,799,886) (15,463,478)
------------ ----------- -------------- -----------
Income
before
income
taxes 128,414,433 17,604,040 394,798,833 54,122,067
Income tax
benefit/
(expense) -- -- 5,569,615 763,526
------------ ----------- -------------- -----------
Net income 128,414,433 17,604,040 400,368,448 54,885,593
------------ ----------- -------------- -----------
Preferred
shares
accretion (1,603,399) (219,806) (515,251) (70,635)
Preferred
shares
beneficial
conversion
charge (34,732,133) (4,761,349) -- --
Allocation of
income to
participating
preferred
share-
holders (5,682,574) (779,010) (1,648,040) (225,926)
------------ ----------- -------------- -----------
Net income
available
to
ordinary
share-
holders 86,396,327 11,843,875 398,205,157 54,589,032
============ =========== ============== ===========
Net income
per
ordinary
shares
Basic 1.08 0.15 2.96 0.41
Diluted 1.08 0.15 2.93 0.40

Weighted
average
number of
ordinary
shares
outstanding:
Basic 80,000,000 80,000,000 134,525,226 134,525,226
Diluted 80,166,178 80,166,178 136,721,772 136,721,772

Net income
per ADS
Basic 1.08 0.15 2.96 0.41
Diluted 1.08 0.15 2.93 0.40

Weighted
average
number of
ADS
outstanding:
Basic 80,000,000 80,000,000 134,525,226 134,525,226
Diluted 80,166,178 80,166,178 136,721,772 136,721,772


Each ADS represents 1 ordinary share



JA Solar Holdings Co., Ltd.
Condensed Consolidated Balance Sheets

December 31, 2006 December 31, 2007
RMB USD RMB USD
-----------------------------------------------------
(Audited) (Conversion) (Unaudited) (Conversion)
-----------------------------------------------------
ASSETS
Current assets
Cash and
cash
equivalents 95,758,377 13,127,296 1,145,032,918 156,969,939
Available-
for-sale
securities -- -- 803,121,383 110,098,070
Accounts
receivables
from third
party
customers 47,719,752 6,541,791 28,819,554 3,950,807
Accounts
receivables
from related
party
customers -- -- 24,730,689 3,390,273
Inventories 154,675,325 21,204,086 157,334,310 21,568,600
Advances to
related
party
suppliers 39,831,642 5,460,429 389,871,684 53,446,616
Advances to
third party
suppliers 1,608,765 220,542 898,722,659 123,203,830
Other current
assets 6,673,976 914,920 42,315,074 5,800,877
Deferred tax
assets -- -- 1,214,246 166,458
----------- ---------- ------------- -----------
Total
current
assets 346,267,837 47,469,064 3,491,162,517 478,595,470
----------- ---------- ------------- -----------
Property and
equipment,
net 139,399,605 19,109,972 532,011,999 72,932,306
Intangible
asset, net 7,224,713 990,419 6,687,677 916,798
Deferred tax
assets -- -- 4,355,369 597,068
Other long
term assets
-advance to
suppliers -- -- 536,332,174 73,524,549
----------- ---------- ------------- -----------
Total assets 492,892,155 67,569,455 4,570,549,736 626,566,191
=========== ========== ============= ===========

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Value-added
tax payables 3,639,665 498,953 342,025 46,887
Advances from
third
parties
customers 21,329,609 2,924,027 70,285,896 9,635,332
Short-term
bank
borrowings 150,000,000 20,563,156 200,000,000 27,417,542
Accounts
payable to
third
parties 2,501,790 342,965 10,119,234 1,387,223
Other
payables to
third parties 2,769,566 379,673 16,841,500 2,308,763
Payroll and
welfare
payable 2,676,854 366,964 6,364,403 872,481
Accrued
expenses 3,932,709 539,126 15,279,750 2,094,666
Accounts
payable to
related
parties 70,868 9,715 70,816 9,708
Other
payable to
related
parties 183,555 25,163 113,819,404 15,603,241
----------- ---------- ------------- -----------
Total current
liabilities 187,104,616 25,649,742 433,123,028 59,375,843
----------- ---------- ------------- -----------
Accrued
warranty
cost -- -- 929,170 127,378
----------- ---------- ------------- -----------
Total
liabilities 187,104,616 25,649,742 434,052,198 59,503,221
----------- ---------- ------------- -----------
Commitment
and
Contin-
gencies -- -- -- --
----------- ---------- ------------- -----------
Shareholders' equity:
Preferred
shares
(US$0.0001
par value;
6,520,000
and 0 shares
outstanding
as of
December 31,
2006 and
December 31
2007) 110,037,714 15,084,818 -- --

Ordinary
shares
(US$0.0001
par value;
493,480,000
shares
authorized,
80,000,000
and
154,058,500
shares
issued and
outstanding
as of
December
31, 2006
and
December 31,
2007) 66,212 9,077 123,307 16,904
Additional
paid-in
capital 106,715,707 14,629,412 3,655,194,120 501,082,187
Statutory
reserve 14,587,748 1,999,801 71,617,912 9,817,935

Accumulated
earnings 74,380,158 10,196,605 417,203,191 57,193,430
Accumulated
other
comprehen-
sive income -- -- (7,640,992) (1,047,486)
----------- ---------- ------------- -----------
Total
shareholders'
equity 195,749,825 26,834,895 4,136,497,538 567,062,970
----------- ---------- ------------- -----------
Total
liabilities
and
shareholders'
equity 492,892,155 67,569,455 4,570,549,736 626,566,191
=========== ========== ============= ===========

Contact:
In China
JA Solar
Herman Zhao, Chief Financial Officer
+86-21-6095-5896

In the U.S.
The Ruth Group
Gerrard Lobo
+1-646-536-7023
globo@theruthgroup.com

--------------------------------------------------------------------------------
Source: JA Solar

Share RecommendKeepReplyMark as Last Read


From: OmertaSoldier3/13/2008 6:38:01 PM
   of 79
 
3/5/08Trina Solar Announces Fourth Quarter and Fiscal Year 2007 Results
Tuesday March 4, 7:41 am ET

CHANGZHOU, China, March 4 /Xinhua-PRNewswire-FirstCall/ -- Trina Solar Limited (NYSE: TSL - News; "Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of PV modules, founded in 1997, today announced its financial results for the fourth quarter and fiscal year 2007.

Fourth Quarter 2007 Highlights
-- Total net revenues increased 22.8% sequentially and 161.6% year-over-
year to $101.4 million
-- Gross profit increased 66.3% sequentially and 205.7% year-over-year to
$27.6 million
-- Net income increased 116.8% sequentially and 242.2% year-over-year to
$15.7 million
-- Solar module shipments increased 13.0% to 23.91 MW from 21.15 MW in the
third quarter of 2007 and 166.3% from 8.98 MW in the fourth quarter of
2006

"We are extremely pleased with our results in the quarter to cap a year of many important achievements. We met or exceeded our annual 2007 targets for product shipment, revenue and net income, as the benefits of our fully integrated business model increased our bottom line," said Trina Solar's Chairman and CEO, Jifan Gao. "During the quarter we have tripled our in-house cell production to meet our integrated capacity expansion targets and reached historical highs in our in-house cell and module efficiencies, which combined drove significant margin expansion. In 2008, we continue to focus efforts to lower our module manufacturing costs through constant improvements in cell efficiencies, wafer thickness reduction, and manufacturing process innovation as we increase our production capacity and execute on our technology roadmap. These developments are central to our three core long-term strategies: developing a strong brand in the marketplace, investing continuously in our technology platform and ensuring our low cost position through our vertically integrated model."

During the quarter, the Company achieved the following milestones:

-- Expanded capacity to 150MW for each of ingot, wafer, cell and module
production
-- Successfully ramped four new cell production lines (No. 3, 4, 5, and 6)
-- Increased in-house cell processing proportion from 25% to over 75%
-- Launched commercial production of multicrystalline ingots of up to 420
kg in size
-- Commenced commercial production of 220-watt multicrystalline modules,
based on self-produced 156mm-sized cells
-- Realized in-house cell efficiency rates of up to 17.0% for
monocrystalline-based cells and up to 15.6% for multicrystalline-based
cells
-- Furthered the Company's brand recognition and market share by further
developing sales channels in developing solar markets, including the
Netherlands, Belgium, France, Greece, and Korea.

The geographic breakdown of the Company's sales for the fourth quarter was approximately 56% Spain, 7% Germany, and 16% Italy, thus bringing our full year 2007 geographic breakdown to approximately 34% Germany, 41% Spain, and 19% Italy.

Fourth quarter 2007 Results

Trina Solar's net revenues in the fourth quarter of 2007 were $101.4 million, an increase of 22.8% sequentially and 161.6% year-over-year. Total shipments increased to 23.91 MW, up from 21.15 MW in the third quarter of 2007 and 8.98 MW in the fourth quarter of 2006.

Cost of revenues in the fourth quarter of 2007 was $73.8 million, an increase of 11.8% sequentially and 148.1% year-over-year due to growth of Trina Solar's solar module business.

Gross profit in the fourth quarter of 2007 was $27.6 million, an increase of 66.3% sequentially and 205.7% year-over-year. Gross margin was 27.2% in the fourth quarter of 2007, an increase from 20.1% in the third quarter of 2007 and 23.3% in the fourth quarter of 2006. The sequential and year-over- year increases in gross margin were primarily due to higher module ASP and manufacturing benefits from increased vertical integration.

Operating expenses in the fourth quarter of 2007 were $11.4 million, an increase of 15.8% sequentially and 259.0% year-over-year. The Company's operating expenses were 11.2% of its fourth quarter net revenues, a decrease from 11.9% in the third quarter of 2007 and an increase from 8.2% in the fourth quarter of 2006. The year-over-year increase was primarily due to higher general and administrative ("G&A") expenses and sales and marketing expenses to support the rapid growth of the Company's business. The G&A expense was 6.4% of its fourth quarter revenues, a sequential decrease from 7.2% and an increase from 5.3% in the fourth quarter of 2006. The sequential decrease was due to measures taken by the Company for expense-control while the year-over-year increase was to support the rapid growth of the Company's business. Operating expenses in the fourth quarter of 2007 included approximately $736,000 of share-based compensation expenses.

Operating income in the fourth quarter of 2007 was $16.2 million, an increase of 139.5% sequentially and 177.0% year-over-year. Operating margin was 16.0% in the fourth quarter of 2007, compared to 8.2% in the third quarter of 2007 and 15.1% in the fourth quarter of 2006. The sequential and year- over-year increases in operating margin were due to higher module ASP and manufacturing benefits from increased vertical integration.

Interest expense in the fourth quarter of 2007 was $2.6 million, compared to $2.1 million in the third quarter of 2007 and $1.1 million in the fourth quarter of 2006. The sequential and year-over-year increase were due to additional bank borrowings compared to the third quarter of 2007 and the fourth quarter of 2006 to secure additional silicon materials. Interest Income was $2.4 million in the fourth quarter, compared to $1.5 million in the third quarter and $0.1 million in the fourth quarter of 2006.

The Company recorded an income tax benefit mainly due to tax refund received in the fourth quarter of 2007 relating to the purchase of domestically manufactured equipment.

Net income from continuing operations was $15.5 million in the fourth quarter of 2007, an increase of 119.7% sequentially and 253.8% year-over-year.

Net income was $15.7 million in the fourth quarter of 2007, an increase of 116.8% sequentially and 242.2% year-over-year. Net margin was 15.5% in the fourth quarter of 2007, compared to 8.8% in the third quarter of 2007 and 11.8% in the fourth quarter of 2006. Earnings per ADS in the quarter were $0.62 per fully diluted ADS, up 116.2% sequentially and 124.3% over the fourth quarter of 2006.

Full Year 2007 Results

For the full year 2007, net revenues were $301.8 million, up 163.6% from $114.5 million in 2006. Gross profit for the full year 2007 was $67.9 million, an increase of 126.0% from $30.0 million in 2006. Gross margin was 22.5% in 2007, compared to 26.2% in 2006. Operating income for the full year 2007 was $36.3 million, up 114.4% from $16.9 million in 2006. Operating margin was 12.0% in 2007, compared to 14.8% in 2006. The decline in operating margin in 2007 was primarily due to the lower gross margin in 2007 as a result of lower ASP and higher polysilicon prices. Net income from continuing operations for the full year 2007 was $34.5 million, an increase of 161.9% from 2006, and was due primarily to the growth in sales of the Company's solar module products. Net income for the full year 2007 was $34.9 million, an increase of 180.8% from 2006. Net margin was 11.6% in 2007, compared to 10.8% in 2006. Earnings per ADS for the full year 2007 were $1.47 per fully diluted ADS.

The Company's 4Q and 2007 financial statements are subject to change based on the Company completing its computation of the fair value of foreign exchange derivatives embedded in two of its material long-term silicon supply contracts. Such contracts provide that the purchase price of the silicon to be acquired is denominated in U.S. Dollars, which is not the functional currency of either of the contracting parties. Given the continued strengthening of the RMB against the USD, the Company believes that the ultimate impact would increase the earnings for both 4Q and fiscal 2007. The impact, if material, will be recorded as "Exchange Gain", a non-operating item, in the consolidated income statement.

Financial Condition

As of December 31, 2007, the Company had $59.7 million in cash and cash equivalents, which excludes the Company's restricted cash balance of $103.4 million. The Company's working capital balance was $121.9 million. Total bank borrowings stood at $171.8 million, of which $8.2 million were long term borrowings. Shareholders' equity was $366.6 million, up from $345.5 million at the end of the third quarter 2007.

Operations Outlook for 2008

Presales and Production

As of this date, the Company has contracted 100% and 85% of its first and second half 2008 targeted module production, respectively, representing approximately 90% of its targeted module production from 200MW to 210MW for 2008. The Company also plans to initiate sales in the United States this year, and is in the final process stage to receive its UL certifications. The Company anticipates its geographic breakdown of 2008 sales in its main markets to be approximately 34% Germany, 26% Spain, 18% Italy, 10% Benelux and 5% in the United States.

Silicon Feedstock

The Company has now secured over 80% of its estimated silicon feedstock requirements for 2008, an equivalent of approximately 170MW based on a module production target of 200-210MW of module output.

Capacity Expansion and Technology Roadmap

Trina Solar continues to be on target to meet its fully integrated capacity goal of 350 MW at end of 2008, and will add approximately 50MW of capacity in each quarter in ingot, wafer, cell, and module production value areas.

In the first quarter of 2008 the Company initiated commercial production of 180 micron monocrystalline wafers and cells from a current thickness of 200 microns and multicrystalline-based wafers of 200 microns from a current thickness of 220 microns. The Company expects to produce monocrystalline wafers of 160 microns and multicrystalline wafers of 180 microns by year end.

In 2008 the Company is developing second generation cell technologies to raise its monocrystalline and multicrystalline conversion efficiencies up to 17.5% and 16.0%, respectively. These improvements will result in our module products reaching output power up to 245 watts for monocrystalline and 230 watts for multicrystalline during 2008.

Module Cost Reduction

In the fourth quarter of 2007 the Company's manufacturing cost per watt excluding polysilicon was approximately $1.28 for combined ingot, wafer, cell, and module production. By fourth quarter 2008, we are targeting cost reduction of approximately 18% to reduce these costs to approximately $1.05 per watt. Driven by our technology development, transfer, and manufacturing process improvements, anticipated cost reductions will result from cell conversion improvements, wafer and cell breakage reduction, and production scale advantages.

Polysilicon Project Update

With goals to secure visibility on supply, price, and quality of up to 50% of its long-term polysilicon requirements, the Company is advancing project planning and financing to build and operate a multi-phased polysilicon production facility announced in the fourth quarter of 2007. We are highly confident that the construction of a polysilicon facility is the appropriate strategic direction to enable our vertically integrated platform to drive the necessary cost reductions to secure a sustainable competitive advantage in the global PV module market space.

We have made good progress in several areas in regard to our silicon production project announced in the fourth quarter. In December we announced our strategic development agreement with the Lianyungang Municipality in China's Jiangsu Province, which includes attractive government support in respect of land and electric power. We have also advanced negotiations for long lead time equipment and engineering procurement contractor (EPC) services. Additionally, we have well-progressed our technical and commercial due diligence work for a long term syndicate debt facility associated with the project.

First Quarter and Fiscal Year 2008 Guidance

For the first quarter of 2008, the Company expects to ship between 29 MW to 31 MW of PV modules and has expectations of total net revenues in the range of $112 million to $120 million. The Company believes gross margin for the first quarter will likely be between 23% and 25% and estimates operating margin to range between 13.5% to 15.5% of total net revenues.

For the full year of 2008 the Company expects total net revenues in the range of $770 million to $808 million, with PV module shipments between 200 MW to 210 MW. The Company is expecting gross margin for the year between 23% and 25% and believes operating margin will likely be in the range of 15% to 17% of total net revenues.

Conference Call

The Company will host a conference call at 8:00 a.m. ET on March 4, 2008, to discuss the results for the quarter ended December 31, 2007. Joining Jifan Gao, Chairman and CEO of Trina Solar, will be Sean Shao, Chief Financial Officer, Sean Tzou, Chief Operating Officer, Terry Wang, Senior Vice President of Finance, Andy Klump, Vice President of Business Development, Arturo Herrero, Vice President of Sales and Marketing, and Thomas Young, Director of Investor Relations. To participate in the conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: +1(888) 552-2116. International callers should dial +1(706)645-9795. Callers in Southern China may also dial 1-0800.1300748. The conference ID for the call is 34931439.

If you are unable to participate in the call at this time, a replay will be available on March 4, at 11:00 a.m. ET, through March 11,at 10:00 a.m. ET. To access the replay, dial +1(800)642-1687 international callers should dial +1(706)645-9291 and enter the conference ID 34931439.

This conference call will be broadcast live over the Internet and can be accessed by all interested parties on Trina Solar's website at trinasolar.com . To listen to the live webcast, please go to Trina Solar's website at least fifteen minutes prior to the start of the call to register, download, and install any necessary audio software. For those unable to participate during the live broadcast, a replay will be available shortly after the call on Trina Solar's website for 90 days.

About Trina Solar Limited

Trina Solar Limited (NYSE: TSL - News), through its wholly-owned subsidiary Changzhou Trina Solar Energy Co. Ltd, is a well recognized manufacturer of high quality modules and has a long history as a solar PV pioneer since it was founded in 1997 as a system installation company. Trina Solar is currently one of the few PV manufacturers that has developed a vertically integrated business model from the production of monocrystalline and multicrystalline ingots, wafers and cells to the assembly of high quality modules. This integrated value chain helps to ensure that high quality products can be delivered to its end customers around the globe, including a number of European countries, such as Germany, Spain and Italy. Trina Solar's solar modules provide reliable and environmentally- friendly electric power for residential, commercial, industrial and other applications worldwide. For further information, please visit Trina Solar's website at trinasolar.com .

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to raise additional capital to finance the Company's activities; the effectiveness, profitability, and marketability of its products; the future trading of the securities of the Company; the ability of the Company to operate as a public company; the period of time for which its current liquidity will enable the Company to fund its operations; the Company's ability to protect its proprietary information; general economic and business conditions; the volatility of the Company's operating results and financial condition; the Company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.

- FINANCIAL TABLES FOLLOW -

Trina Solar Limited
Consolidated Statement of Operations
(US dollars in thousands, except ADS and share data)

For the Three Months Ended For the Year Ended
December 31, December 31,
2007 2006 2007 2006
(unaudited) (unaudited) (unaudited)

Net revenues $101,394 $38,766 $301,819 $114,500

Cost of revenues 73,796 29,740 233,905 84,450

Gross profit 27,598 9,026 67,914 30,050
Operating expenses
Selling
expenses 3,860 927 11,019 2,571
General and
administrative
expenses 6,533 2,050 17,817 8,656
Research and
development
expenses 978 190 2,805 1,903
Total operating
expenses 11,371 3,167 31,641 13,130

Operating income 16,227 5,859 36,273 16,920
Exchange gain or
(loss) (1,440) -- (1,999) --

Interest expenses (2,636) (1,069) (7,551) (2,137)

Interest income 2,362 122 4,810 261
Other income
(expenses) 502 3 1,268 (82)
Income before
income taxes 15,015 4,915 32,801 14,962
Income tax
(expenses) benefit 509 (527) 1,707 (1,788)
Net income from
continuing
operations 15,524 4,388 34,508 13,174
Net income (loss)
from discontinued
operations 162 196 368 (753)

Net income $15,686 $4,584 $34,876 $12,421

Earnings per ordinary
share from continuing
operations
Basic 0.006 0.003 0.015 0.010
Diluted 0.006 0.003 0.015 0.010

Earnings per ADS
from continuing
operations
Basic 0.622 0.271 1.475 0.978
Diluted 0.612 0.264 1.455 0.959

Earnings per
ordinary share
Basic 0.006 0.003 0.015 0.009
Diluted 0.006 0.003 0.015 0.009

Earnings per ADS
Basic 0.628 0.283 1.490 0.922
Diluted 0.619 0.276 1.470 0.904

Weighted average
ordinary shares
outstanding
Basic 2,495,985,720 1,152,016,485 2,339,917,459 1,038,316,484
Diluted 2,535,166,603 1,181,277,275 2,371,963,822 1,058,483,593

Weighted average
ADS outstanding
Basic 24,959,857 11,520,165 23,399,175 10,383,165
Diluted 25,351,666 11,812,773 23,719,638 10,584,836

Trina Solar Limited
Consolidated Balance Sheet
(US dollars in thousands)

December 31, December 31,
2007 2006
(unaudited)

ASSETS
Current assets:

Cash and cash equivalents $59,696 $93,380

Restricted cash 103,375 5,004

Inventories 58,548 32,230

Accounts receivable, net 72,323 29,353

Other receivables 3,063 1,228

Advances to suppliers 43,567 34,606
Value-added tax recoverable 1,417 1,035

Deferred tax assets 380 613
Current assets of discontinued operations 33 353

Total current assets 342,402 197,802

Property, plant and equipment 197,124 51,419

Intangible assets, net 5,462 2,372

Advances to suppliers - long-term 53,737 --

Deferred tax assets 1,095 152

TOTAL ASSETS $599,820 $251,745

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term borrowings, including
current portion of long-term debt $163,563 $71,409

Accounts payable 42,691 9,147

Accrued expenses 10,255 5,029

Advances from customers 2,371 1,200

Income tax payable 1,406 850
Current liabilities to be disposed 199 434

Total current liabilities 220,485 88,069

Long-term bank borrowings 8,214 5,122

Accrued warranty costs 4,486 1,400

Total liabilities 233,185 94,591

Ordinary shares 26 21

Additional paid-in capital 304,878 139,671

Retained earnings 50,466 15,622

Other comprehensive income 11,265 1,840

Total shareholders' equity 366,635 157,154
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $599,820 251,745

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