Chinese solar cell and module producer JA Solar exited H1/2021 with 48.77% improvement in operating income that added up to a total of RMB 16.19 billion. It attributes the increase in operating income to an increase in shipments and sales. Its net profit increased by 1.78% to RMB 713 million.
However, its operating costs went up as well by 60.76% on annual basis mainly due to above reasons and increase in price of raw materials.
It shipped 10.12 GW of total solar module shipments during the reporting period, of which 63% went overseas and domestic shipments share increased to 37%. To Europe, its shipment share increased by 7% to 27% in Q2/2021, compared to the previous quarter.
At the end of 2020, JA Solar's module production capacity was 23 GW, and upstream silicon wafer and solar cell production capacity was about 80% of the module capacity. By the end of 2021, it expects its module capacity to reach 40 GW.
It continues to work on its 20 GW mono silicon crystal pull and 20 GW slicing projects in Baotou Equipment Manufacturing Industrial Park with a total investment of about RMB 5.8 billion (see China PV News Snippets: HIUV, JA Solar, Trina, Almaden).
JA Solar mainly produces its solar cells and modules in China, but to avoid international trade barriers it supplies from its international factories in Malaysia and Vietnam. Like its peers, it has been entering into long term raw material supply agreements to lock in supply (see JA Solar Secures 78,200 MT Polysilicon Supply From Daqo). The Chinese manufacturer has also contracted Flat Glass Group and Gaoce Technology to supply rolled PV glass and wafer slicing equipment, respectively (see Glass Procurement & Wafer Slicing Deals For JA Solar).
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