Kirayaka International | JA Solar's Losses Increase.

Online, May 12, 2013 (Newswire.com) - Kirayaka International reportedly announced in an investors meeting recently that the world's largest solar panel manufacturer JA Solar Holdings Co has reported larger fourth quarter losses than expected.

The largest panel maker by capacity, JA Solar Holdings Co, experienced a widening of fourth quarter losses, due to decreasing panel prices that exceeded their expected losses. The Shanghai, China based company saw their American depository receipts, each equivalent to one ordinary share, fall to $3.71, a drop of 11 percent, in trading in New York.

Kirayaka International allegedly remarked that prices of wafers and modules have crumbled due to oversupply and weak demand, taking a heavy toll on the industry. JA Solar has experienced six consecutive quarters of declining revenue. Chairman and CEO Baofang Jin said it had been a challenging year and that industry-wide overcapacity continued to put downward pressure on margins.

JA Solar's fourth quarter losses increased from 430 million yuan in 2011 to 638 million yuan ($103 million) last year. The loss comfortably exceeded the average loss of 394 million yuan that the company anticipated.

The price of solar panels has fallen dramatically as the government in China has pushed dozens of smaller companies into the industry. New manufacturers were still coming online in 2011 after Western countries had drastically cut their subsidy programs because of the financial crisis. Demand stalled as supply levels surges, resulting in prices being slashed.

Kirayaka International apparently noted that a spokesperson for JA Solar publicly stated that shipments climbed 26 percent to 500 megawatts, on the back of healthy demand from China and Japan. He added that capacity is to be reduced to 300 megawatts during the quarter in an efficiency boosting and cost cutting drive.