JA Solar

JASO, priced February 6, 2007 at $15 per ADR

China-based solar cells mfg

Post-IPO shrs: 44mm equivalent ADSs

Ningjin, Hebei Province, China

Sept 06*

IPO Mkt

Rev ($mm) 3rd parties

proforma

$32

Cap (mm)

Rev ($mm) related 3rd parties

$12

$658

Total Revenue

$44

@$15

Gross Profit %

25%

Profit (loss) ($mm)

$7

Profit (loss) %

21.6%

Business

*nine months ended Sept 30

. Manufacturers of high-performance solar cells based in China.

. Derives revenues primarily from sales of solar cells to solar module manufacturers.

. Made first commercial shipment in April 2006 from the first solar cell manufacturing line located

in Ningjin, Hebei province, which has a rated manufacturing capacity of 25 MW per annum.

. By the end of July 2006, the first solar cell manufacturing line was operating at its full capacity

. Installed two additional manufacturing lines each with a rated manufacturing capacity of 25 MW

per annum in the same facilities, which became fully operational in October 2006 and resulted in a

total rated manufacturing capacity of 75 MW per annum.

Recent declines in sales and prices

Sales

. Sales volume and average selling price in October 2006 have declined from those in September

2006 due to weakened market demand, increased competition and changes in other market

conditions.

The decline in November 2006 production from October 2006 was due to a scheduled five-day

power outage experienced in early November 2006 when the power grid in the Ningjin area

underwent an overhaul.

Average selling price

. Average selling price continued to decline in November 2006. Since September 2006, at the

request of customers in China, agreed to terminate or amend the terms of some of the long-term

customer contracts.

Nine months ended Sept 30, 2006

Revenues

. For the nine months ended September 30, 2006, sales to the three largest customers accounted for

approximately 47% of total revenues (two of which were related parties until August 2006, and

sales to them accounted for approximately 35% of total revenues), and sales to the largest

customer, a related party until August 2006, accounted for 23% of total revenues.

Production & sales

. Since commenced commercial production in April 2006, attempted to expand and diversify the

customer base, which has increased from a total of ten customers as of June 30, 2006 to 36

customers as of September 30, 2006, and to approximately 50 customers as of December 31, 2006.

. In addition, while direct sales to overseas customers only accounted for 1.3% of total sales

revenue for the nine months ended September 30, 2006, have sold products to customers in

Germany, Sweden, Spain, South Korea and the United States.

. From April 2006 to September 2006, sold a total of approximately 5.2 million pieces of solar

cells with a total power output of approximately 12.61 MW at an average selling price of RMB

27.0 (US$3.42) per watt.

Availability and Price of Silicon Wafers

Currently has a long-term silicon wafer supply agreement with Jinglong Group, the largest

producer and supplier of monocrystalline silicon wafers in China.

Customer Agreements

. For the nine months ended September 30, 2006, 98.7% of total sales revenue was generated

from sales to customers based in China. During this period, sales to the three largest customers

represented approximately 47% of total revenues, of which two were related parties until

August 2006 that represented approximately 35% of total revenues

. In January 2007, signed the largest long-term customer agreement to date with PowerLight, a

wholly-owned subsidiary of SunPower Corporation, under which JASO has agreed to supply

PowerLight with a total of 120 MW of solar cells through the end of 2009.

. In January 2007, also signed a long-term sales agreement with Crown Renewable Energy, under

which JASO agreed to supply Crown Renewable Energy with a total of 45 MW of solar cells

through the end of 2009

Competition

. In the global market, competitors include photovoltaic divisions of large conglomerates, such as

BP Solar International Inc., Schott AG, Sharp Corporation, Mitsubishi Electric Corporation, and

Sanyo Electric Co., Ltd., specialized cell and module manufacturers such as Motech Industries,

Inc., E-Ton Solar Tech Co., Ltd. and Q-Cells AG, as well as integrated manufacturers of

photovoltaic products such as SolarWorld AG.

. In the Chinese market, competes with Suntech Power Co., Ltd., Nanjing PV-Tech Co., Ltd.,

Solarfun Power Holdings Co., Ltd., Tianwei Yingli New Energy Resources Co., Ltd. and Jiangyin

Jetion Science & Technology Co., Ltd.

. Many of competitors are developing or currently producing products based on new solar

technologies, including amorphous silicon, ribbon and nano technologies. These new technologies

have certain advantages over the crystalline technologies that JASO currently uses because the

production process using the new technologies often can be integrated in a shorter and simpler

process and require less silicon materials for production.

. As a result, competitors using or developing these new technologies believe these technologies

will ultimately cost the same as or less than the cost of crystalline technologies similar to JASO's,

on a cost per watt basis.

. At present, however, JASO believes its products have higher efficiencies and longer lifetimes

compared to products produced using these competing technologies

Use of $186mm in IPO proceeds

o US$100 million to prepay for raw materials pursuant to a long-term wafer supply agreement

with M.SETEK;

o US$20 million to prepay for raw materials from other suppliers, including Jinglong Group;

o US$20 million to purchase manufacturing equipment and construct certain operating facilities

for planned Shanghai facilities to expand manufacturing capacity;

o US$19 million to repay short-term debt obligations;

o US$10 million to enhance research and development capabilities; and

o remaining amount to be used for working capital and other general corporate purposes.