PVTIME – Per JA Solar’s Q1 2020 financial forecast released on April 15, the company is expecting Q1 net profit to be in the range of 250 – 350 million CNY, an 189.03%-246.84% increase compared to the same period last year.
JA Solar attributes the significant growth to the company’s increased efforts in developing the international market, increase in overall shipments period-on-period, and the continued strengthening of its cost control methods.
However, a comparison between Q4 2019 and Q1 2020 shows a decrease in net profit from 550 million CNY to 250-350 million CNY. The company acknowledges that, during the reporting period, production and logistics cycles had been extended due to the impact of COVID-19, and due to Chinese New Year shutdowns, the first quarter is typically the lowest period for revenue and profitability for Chinese solar enterprises.
Furthermore, decreased demand in domestic and major overseas markets such as Europe and the United States due to the spread of COVID-19 has also negatively impacted Q1 2020 profits but JA Solar has noted that its management has and will continue to limit the impact of the pandemic on its business development through coordinated efforts.