HEBEI, China, June 11, 2007 (PRIME NEWSWIRE) -- JA Solar Holdings Co., Ltd. ("the Company") (Nasdaq:JASO) and M.SETEK, a privately-held Japanese company and one of the world's largest monocrystalline ingot and wafer manufacturers, today announced that under a revised supply agreement, M.SETEK will supply larger quantities of wafers from July 2007, and the payment terms are also restructured from single payment to three installments. The original agreement was entered into in December 2006 and the revised agreement was entered into on June 5, 2007, about two weeks after the inauguration ceremony of M.SETEK's brand new polysilicon material plant in Soma, Japan.
"At the time of tight supply of feedstock of poly-silicon in solar industry, this agreement enables JA Solar to be in a more comfortable position," said Samuel Yang, JA Solar's Chief Executive Officer. "M. SETEK is a highly respected and reliable supplier of high quality monocrystalline wafers. We are delighted to have strengthened the partnership with M.SETEK in our supply chain. This long-term agreement, combined with other supply agreements previously negotiated with key partners, gives us confidence that JA Solar will be able to meet the expected demand levels we are seeing from customers, while maintaining our strict focus on profitability."
M.SETEK Wafers Per Month to JA Solar
Original Contract Period Wafers per Month
------------------------------------- ----------------
July 2007 to December 2007 100,000
------------------------------------- ----------------
January 2008 to June 2008 500,000
------------------------------------- ----------------
July 2008 to June 2009 1,500,000
------------------------------------- ----------------
July 2009 to December 2011 3,000,000
------------------------------------- ----------------
Revised Contract Period Wafers per Month
------------------------------------- ----------------
July 2007 to October 2007 300,000
------------------------------------- ----------------
November 2007 to December 2007 700,000
------------------------------------- ----------------
January 2008 to June 2008 1,200,000
------------------------------------- ----------------
July 2008 to June 2009 3,000,000
------------------------------------- ----------------
July 2009 to December 2011 5,000,000
------------------------------------- ----------------
Original Contract Revised Contract
----------------- ------------------
Prepayment amount US$100 million US$100 million
------------------ ----------------- ------------------
Prepayment period 1 payment; 3 payments;
June 2007 US$30 million
(June 2007);
US$30 million
(August 2007);
US$40 million
(October 2007)
------------------ ------------------ ------------------
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, monocrystalline 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 visit www.jasolar.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. 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. 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.