SHANGHAI, Nov. 19, 2018 /PRNewswire/ -- ReneSola Ltd
("ReneSola" or the "Company") (www.renesolapower.com) (NYSE: SOL),
a leading solar project developer, today announced its unaudited
financial results for the third quarter ended September 30, 2018.
Mr. Xianshou Li, ReneSola's Chief Executive Officer, commented,
"We delivered another quarter of solid performance, as the effort
to execute on ReneSola's transformation over the past twelve months
continued to yield results. Revenue was once again at the
high end of our expectations, and we meaningfully improved both
gross and operating margins. Net income for the third quarter grew
significantly, despite the sequential revenue decline of more than
30%, as anticipated. These strong results reflect our
accelerating business momentum and improving earnings power."
Li continued, "Our overall solar power project pipeline remains
solid at around 1.5 GW, and we continue to be optimistic about our
opportunities around the world. We believe that our talented
team, diversified geographic coverage and track record of success
at every stage of project development positions us for profitable
growth in the years ahead."
Third Quarter 2018 Highlights
|
Q3 2018
($
millions)
|
Q2 2018
($
millions)
|
Q/Q Change
|
Revenue
|
$18.8
|
$27.8
|
-33%
|
Gross
Profit
|
$8.6
|
$8.2
|
+5%
|
Operating
Income
|
$5.7
|
$5.9
|
-3%
|
EBITDA
|
$7.9
|
$5.2
|
+53%
|
Income before Income
Tax and Noncontrolling interests
|
$3.6
|
$0.4
|
+748%
|
Net Income
|
$3.6
|
$0.4
|
+749%
|
- Revenue was $18.8 million, toward
the high end of the guidance range of $15 to $20
million;
- Key constituents of revenue:
- $5.5 million from the Project
Development business, mainly from sales of community solar projects
in Minnesota, United States and France;
- $3.3 million from EPC services for
distributed generation projects in China
- $10.0 million from the sale of
electricity
- Gross margin was 46%, compared to 30% in Q2 2018;
- Income before income tax and noncontrolling interests was
$3.6 million, compared to
$0.4 million in Q2 2018 and
$4.0 million in Q3 2017;
- Connected 6.2 MW of rooftop projects in China;
- Sold 13.9 MW of community solar projects in Minnesota, United
States and 6.7 MW of projects in France;
- Solar power project pipeline of approximately 1.5 GW, of which
783.3 MW are late-stage projects.
Third Quarter 2018 Financial Results
Revenue was $18.8 million,
compared to $27.8 million in Q2 2018
and $36.3 million in Q3 2017.
Revenue from the Project Development business was $5.5 million, due mainly to sales of 13.9 MW of
community solar projects in Minnesota, United
States and 6.7 MW of projects in France.
Revenue from the EPC business was $3.3
million due to EPC services for 3.7 MW of distributed
generation projects in China.
Revenue from the sale of electricity was $10.0 million. The Company generated 66.1 Million
Kwh of electricity from its operating DG projects in China.
Gross profit was $8.6 million,
compared to a gross profit of $8.2
million in Q2 2018 and $6.4
million in Q3 2017. Gross margin was 46%, compared to 30% in
Q2 2018, mainly due to the seasonality of solar irradiation and
better margins in the project development business.
Operating expenses were $2.9
million, up from $2.3 million
in Q2 2018 and $2.5 million in Q3
2017. Sales and marketing expenses were $0.1
million, slightly down from $0.2
million in Q2 2018. General and administrative expenses were
$2.6 million, slightly down from
$2.7 million in Q2 2018.
Operating income was $5.7 million,
down from $5.9 million in Q2 2018 and
up from $3.8 million in Q3 2017.
Operating margin was 30.4%, compared to 21.2% in Q2
2018.
Total non-operating expenses of $2.1
million included interest expenses of $2.6 million, interest income of $0.1 million and foreign exchange gains of
$0.4 million, mainly driven by the
appreciation of the Polish zloty against the Euro.
Income before income tax and noncontrolling interests was
$3.6 million, compared to
$0.4 million in Q2 2018 and
$4.0 million in Q3 2017.
Net income was $3.6 million,
compared to $0.4 million in Q2 2018
and $4.0 million in Q3 2017.
Financial Position
The Company had cash and cash equivalents of $8.1 million as of September 30, 2018, compared to $24.8 million as of June
30, 2018. The decline was mainly due to capital
expenditures associated with construction activity for our projects
in Poland and Hungary. Long-term borrowings were
$73.3 million as of September 30, 2018, compared to $72.7 million as of June
30, 2018. The increase was mainly due to the project loan
for Hungarian projects. Long-term failed sale-lease back and
capital lease liabilities, associated with the financial leasing
payables for rooftop projects in China, were $79.9
million as of September 30,
2018, compared to $85.0
million as of June 30,
2018.
Recent Business Updates
- On November 8, 2018, ReneSola
announced that it entered into a letter of intent (LOI) to sell its
55MW of solar projects in Poland
to Chroma Impact Investment, a global investor in renewable energy
that focuses on large-scale solar, B2B and storage projects.
ReneSola's 55 MW of Polish projects consists of 55 individual
projects, each with a capacity of 1 MW. These projects will sell
power under Poland's Contract for
Difference (CFD) regime and are eligible for a 15-year guaranteed
tariff.
- On September 11, 2018, ReneSola
and Nautilus Solar Energy, LLC ("Nautilus"), a leading national
solar project acquisition, development and asset management
company, announced Nautilus's acquisition of a second 13.3 MW
community solar portfolio developed by ReneSola. Similar to the
initial acquisition announced last year, this community solar
portfolio also qualified under Xcel Energy's rapidly expanding
community solar program in Minnesota.
Operating Assets and Completed Projects for Sale
The Company continues to pursue opportunities in small-scale
projects in diversified regions and believes its strategy can
capitalize on trends in solar energy development. ReneSola
currently owns 232 MW of operating rooftop projects, which
are concentrated in a handful of eastern provinces in China with attractive development
environments. As of September 30,
2018, the Company had approximately 132 MW of projects under
construction.
Operating
Assets
|
Capacity
(MW)
|
China
DG
|
212.0
|
- Zhejiang&
Shanghai
|
75.2
|
- Jiangsu
|
13.9
|
- Henan
|
61.7
|
- Anhui
|
32.1
|
- Hebei
|
17.3
|
- Shandong
|
7.5
|
- Fujian
|
4.3
|
Romania
|
15.4
|
United
Kingdom
|
4.3
|
Total
|
231.7
|
As of September 30, 2018, the
Company had 14.0 MW of completed projects, which are currently for
sale.
Completed Projects
for Sale
|
Capacity
(MW)
|
Poland
|
14.0
|
Total
|
14.0
|
Project Pipeline
As of September 30, 2018, the
Company had a project pipeline of approximately 1.5 GW, of which
783.3 MW are late-stage projects. 131.8 MW of the late-stage
projects are under construction. Late-stage projects include (i)
projects with the legal right to develop based on definitive
agreements, including the projects held by project SPVs or
joint-ventured project SPVs where control can be purchased by the
Company once the late stage is reached, and (ii) projects for which
a PPA or FiT has been arranged.
The following table sets forth the Company's late-stage project
pipeline by location:
Project
Location
|
Late-stage
(MW)
|
Under Construction
(MW)
|
USA
|
347.0
|
24.0
|
Canada
|
7.6
|
7.6
|
Poland
|
41.0
|
41.0
|
Hungary
|
42.6
|
42.6
|
France
|
71.5
|
--
|
Spain
|
12.0
|
--
|
India
|
236.0
|
--
|
South
Korea
|
9.0
|
--
|
China DG
|
16.6
|
16.6
|
Total
|
783.3
|
131.8
|
China
China: Late-stage
Pipeline
|
Capacity
(MW)
|
Business
Model
|
-Zhejiang &
Shanghai
|
12.3
|
Project
Development
|
-Jiangsu
|
4.3
|
Project
Development
|
China
DG
|
16.6
|
|
United States
In the U.S, the Company has a late-stage pipeline of 347.0 MW,
24.0 MW of which are under construction and expected to be
connected to the grid in the fourth quarter of 2018.
US: Late-stage
Pipeline
|
Location
|
Capacity
(MW)
|
Project
Type
|
Status
|
Expected
COD
|
Business
Model
|
RP-NC
|
NC
|
24.1
|
Utility
|
Construction
|
2018
|
Project
Development
|
Utah
|
UT
|
10.7
|
Self-consumption /
DG
|
Development
|
2018
|
Project
Development
|
RP-MN
|
MN
|
20.6
|
Community
Solar
|
Development
|
2018
|
Project
Development
|
MN-VOS
|
MN
|
15.4
|
Community
Solar
|
Development
|
2019
|
Project
Development
|
New York
|
NY
|
87.6
|
Community
Solar
|
Development
|
2019
|
Project
Development
|
RP-CA
|
CA
|
23.6
|
Utility
|
Development
|
2019
|
Project
Development
|
Florida
|
FL
|
100.0
|
TBD
|
Development
|
2019
|
Project
Development
|
Alpine
|
TX
|
65.0
|
TBD
|
Development
|
2019
|
Project
Development
|
Total
|
|
347.0
|
|
|
|
|
Canada
In Canada, the Company has a
late-stage pipeline of 7.6 MW projects, all under construction and
expected to be connected to the grid by the end of 2018. All
7.6 MW of projects are eligible for Canada's FiT3 Scheme.
Canada: Late-stage
Pipeline
|
Location
|
Capacity
(MW)
|
Project
Type
|
Status
|
Expected
COD
|
Business
Model
|
FiT3
|
Ontario
|
7.6
|
DG
|
Construction
|
2018
|
Project
Development
|
Total
|
|
7.6
|
|
|
|
|
Poland
In Poland, the Company has a late-stage pipeline
of 41.0 MW, which are all under construction. This pipeline is
included in the package of projects intended to be sold to Chroma
Investment.
Poland: Late-stage
Pipeline
|
Location
|
Capacity
(MW)
|
Project
Type
|
Status
|
Expected
COD
|
Business
Model
|
Auction 2017
Jun
|
Poland
|
41.0
|
DG
|
Development
|
2018/2019
|
Project
Development
|
Total
|
|
41.0
|
|
|
|
|
Hungary
In Hungary, the Company grew
its late-stage pipeline to 71 "Micro PPs" projects with a total
capacity of 42.6 MW, all of which are under construction.
Hungary: Late-stage
Pipeline
|
Location
|
Capacity
(MW)
|
Project
Type
|
Status
|
Expected
COD
|
Business
Model
|
Portfolio of "Micro
PPs", 0.5 MW each
|
Hungary
|
42.6
|
DG
|
Construction
|
2018/2019
|
Project
Development
|
Total
|
|
42.6
|
|
|
|
|
France
In France, the Company formed a
strategic partnership with Green City Energy to jointly develop
four solar parks with a total installed capacity of 69.0 MW.
Additionally, the Company was awarded solar projects in
France with a combined capacity of
2.5 MW in the last tender.
France: Late-stage
Pipeline
|
Location
|
Capacity
(MW)
|
Project
Type
|
Status
|
Expected
COD
|
Business
Model
|
SOLARPARK
|
France
|
69.0
|
Utility
|
Development
|
2019
|
Project
Development
|
SPV2
|
France
|
2.5
|
DG
|
Development
|
2019
|
Project
Development
|
Total
|
|
71.5
|
|
|
|
|
India
In India, the Company has a
pipeline of 236.0 MW, which are self-consumption or open access
projects with top-rated commercial and industrial off-takers.
Other Geographies:
Late-stage Pipeline
|
Location
|
Capacity
(MW)
|
Project
Type
|
Status
|
Expected
COD
|
Business
Model
|
Andhra
Pradesh
|
India
|
30.0
|
DG
|
Development
|
2019
|
Project
Development
|
Gujarat
|
India
|
5.0
|
DG
|
Development
|
2019
|
Project
Development
|
Andhra
Pradesh
|
India
|
56.0
|
DG
|
Development
|
2020
|
Project
Development
|
Gujarat
|
India
|
45.0
|
DG
|
Development
|
2019/2020
|
Project
Development
|
Rajasthan
|
India
|
50.0
|
DG
|
Development
|
2019
|
Project
Development
|
Maharashtra
|
India
|
50.0
|
DG
|
Development
|
2020
|
Project
Development
|
Total
|
|
236.0
|
|
|
|
|
Other Geographies
In Spain, the Company has a
late-stage pipeline of 12.0 MW of private PPA projects. In
South Korea, the Company has
secured a pipeline of 9.0 MW.
Other Geographies:
Late-stage Pipeline
|
Location
|
Capacity
(MW)
|
Project
Type
|
Status
|
Expected
COD
|
Business
Model
|
Spain PPA
|
Spain
|
12.0
|
Utility
|
Development
|
2019
|
Project
Development
|
South
Korea
|
South
Korea
|
9.0
|
Utility
|
Development
|
2019
|
Project
Development
|
Total
|
|
21.0
|
|
|
|
|
Outlook
For the fourth quarter of 2018, the Company's project business
is expected to generate revenue in the range of $20 to $30 million
and overall gross margin in the range of 20% to 25%.
Adoption of New Accounting Policy
Effective from January 1, 2018,
ReneSola adopted the new revenue recognition policy, ASC 606 —
Revenue from Contracts with Customers, using the modified
retrospective method in accordance with US GAAP ("ASC 606"). As a
result of adopting ASC 606, the Company recognized the cumulative
effect of initially applying the revenue standard as an increase of
approximately USD 0.9 million to the
opening balances of retained earnings in the first quarter of 2018.
There was no adjustment in the third quarter of 2018.
Conference Call Information
ReneSola's management will host an earnings conference call on
November 19, 2018 at 8:00 a.m. U.S. Eastern Time (9:00 p.m. China Standard Time).
Dial-in details for the earnings conference call are as
follows:
|
Phone
Number
|
Toll-Free
Number
|
United
States
|
+1 (845)
675-0437
|
+1 (866)
519-4004
|
Hong Kong
|
+852
30186771
|
+852 (800)
906601
|
China
|
+86 (800)
819-0121
+86 (400)
620-8038
|
|
Other
International
|
+65
6713-5090
|
|
The call passcode is 9194756.
The Company requests listeners to dial in ten minutes before the
scheduled start time, in order to avoid delays in
registering.
A replay of the conference call may be accessed by phone at the
following numbers until November 27,
2018. To access the replay, please again reference the
conference passcode 9194756.
|
Phone
Number
|
Toll-Free
Number
|
United
States
|
+1 (646)
254-3697
|
+1 (855)
452-5696
|
Hong Kong
|
+852
3051-2780
|
+852 (800)
963117
|
Mainland
China
|
+86 (800)
870-0206
+86 (400)
602-2065
|
|
Other
International
|
+61 (2)
8199-0299
|
|
Additionally, a live and archived webcast of the conference call
will be available on the Investor Relations section of ReneSola's
website at http://www.renesolapower.com.
About ReneSola
Founded in 2005, and listed on the New York Stock Exchange in
2008, ReneSola (NYSE: SOL) is an international leading brand of
solar project developer and operator. Leveraging its global
presence and solid experience in the industry, ReneSola is well
positioned to develop green energy projects with attractive return
around the world. For more information, please visit
www.renesolapower.com.
Safe Harbor Statement
This press release contains statements that constitute
''forward-looking" statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and as defined in the
U.S. Private Securities Litigation Reform Act of 1995. Whenever you
read a statement that is not simply a statement of historical fact
(such as when the Company describes what it "believes," "plans,"
"expects" or "anticipates" will occur, what "will" or "could"
happen, and other similar statements), you must remember that the
Company's expectations may not be correct, even though it believes
that they are reasonable. Furthermore, the forward-looking
statements are mainly related to the Company's continuing
operations and you may not be able to compare such information with
the Company's past performance or results. The Company does
not guarantee that the forward-looking statements will happen as
described or that they will happen at all. Further information
regarding risks and uncertainties that could cause actual results
to differ materially from those in the forward-looking statements
is included in the Company's filings with the U.S. Securities and
Exchange Commission, including the Company's annual report on Form
20-F. The Company undertakes no obligation, beyond that required by
law, to update any forward-looking statement to reflect events or
circumstances after the date on which the statement is made, even
though the Company's situation may change in the future.
For investor and media inquiries, please contact:
In China:
ReneSola Ltd
Mr. Johnny Pan
+86 (21) 6280-9180 x131
ir@renesolapower.com
The Blueshirt Group Asia
Mr. Gary Dvorchak, CFA
+86 (138) 1079-1480
gary@blueshirtgroup.com
In the United
States:
The Blueshirt Group
Mr. Ralph Fong
+1 (415) 489-2195
ralph@blueshirtgroup.com
RENESOLA
LTD
|
Unaudited
Consolidated Balance Sheets
|
(US dollars in
thousands)
|
|
Sep
30,
|
|
Jun
30,
|
|
Sep
30,
|
|
2018
|
|
2018
|
|
2017
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
8,067
|
|
24,805
|
|
5,156
|
Restricted
cash
|
2,582
|
|
1,571
|
|
-
|
Accounts
receivable, net of allowances for doubtful
accounts
|
39,155
|
|
43,893
|
|
9,992
|
Inventories ,
net of inventory provisions
|
169
|
|
-
|
|
-
|
Advances to
suppliers-current, net
|
649
|
|
660
|
|
348
|
Value added tax
recoverable
|
16,784
|
|
15,002
|
|
13,357
|
Prepaid
expenses and other current assets
|
6,740
|
|
10,525
|
|
10,608
|
Project assets
current
|
63,479
|
|
77,799
|
|
52,171
|
Deferred
project costs current
|
-
|
|
-
|
|
17,788
|
Contract
costs
|
375
|
|
1,006
|
|
46,827
|
Total
current assets
|
138,000
|
|
175,261
|
|
156,247
|
|
|
|
|
|
|
Property, plant
and equipment, net
|
192,541
|
|
195,885
|
|
138,056
|
Deferred tax
assets-non-current, net
|
1,103
|
|
414
|
|
130
|
Project assets
non-current
|
43,023
|
|
17,133
|
|
7,470
|
Other
non-current assets
|
774
|
|
922
|
|
5,264
|
Total
assets
|
375,441
|
|
389,615
|
|
307,167
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
borrowings
|
7,123
|
|
7,527
|
|
-
|
Accounts
payable
|
24,556
|
|
23,662
|
|
15,803
|
Advances from
customers-current
|
19
|
|
213
|
|
23,175
|
Amounts due to
related parties
|
22,401
|
|
31,725
|
|
34,213
|
Other current
liabilities
|
37,932
|
|
40,589
|
|
33,113
|
Income tax
payable
|
796
|
|
147
|
|
94
|
Salary
payable
|
471
|
|
800
|
|
182
|
Total
current liabilities
|
93,298
|
|
104,663
|
|
106,580
|
|
|
|
|
|
|
Long-term
borrowings
|
73,294
|
|
72,742
|
|
30,363
|
Deferred
project revenue non-current
|
-
|
|
-
|
|
26,903
|
Failed
sale-lease back and capital lease
liabilities
|
79,922
|
|
85,021
|
|
56,466
|
Total
liabilities
|
246,514
|
|
262,426
|
|
220,312
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
|
Common
shares
|
519,313
|
|
519,226
|
|
519,139
|
Additional
paid-in capital
|
8,665
|
|
8,710
|
|
8,438
|
Accumulated
deficit
|
(428,408)
|
|
(429,898)
|
|
(437,209)
|
Accumulated
other comprehensive income
|
(4,790)
|
|
(2,851)
|
|
(3,513)
|
Total equity
attributed to ReneSola Ltd
|
94,780
|
|
95,187
|
|
86,855
|
Noncontrolling interest
|
34,147
|
|
32,002
|
|
-
|
Total
shareholders' equity
|
128,927
|
|
127,189
|
|
86,855
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity
|
375,441
|
|
389,615
|
|
307,167
|
RENESOLA
LTD
|
Unaudited
Consolidated Statements of Income
|
(US dollars in
thousands, except ADS and share data)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Sep 30,
2018
|
|
Jun 30,
2018
|
|
Sep 30,
2017
|
|
|
|
|
|
|
|
Net
revenues
|
|
18,765
|
|
27,809
|
|
36,294
|
Total net
revenues
|
|
18,765
|
|
27,809
|
|
36,294
|
Cost of
revenues
|
|
(10,152)
|
|
(19,598)
|
|
(29,926)
|
Gross
profit(loss)
|
|
8,613
|
|
8,211
|
|
6,368
|
|
|
|
|
|
|
|
Operating
(expenses) income:
|
|
|
|
|
|
|
Sales and
marketing
|
|
(119)
|
|
(173)
|
|
(601)
|
General and
administrative
|
|
(2,599)
|
|
(2,680)
|
|
(1,888)
|
Other operating
income
|
|
(189)
|
|
544
|
|
(50)
|
Total
operating expenses
|
|
(2,907)
|
|
(2,309)
|
|
(2,539)
|
|
|
|
|
|
|
|
Income(loss)
from operations
|
|
5,706
|
|
5,902
|
|
3,829
|
Non-operating
(expenses) income:
|
|
|
|
|
|
|
Interest
income
|
|
145
|
|
43
|
|
26
|
Interest
expense
|
|
(2,680)
|
|
(2,623)
|
|
(1,129)
|
Foreign
exchange gains (losses)
|
|
406
|
|
(2,900)
|
|
1,236
|
Other
loss
|
|
|
|
|
|
5
|
Income
(loss) before income tax, noncontrolling
interests
|
|
3,577
|
|
422
|
|
3,967
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(3)
|
|
(1)
|
|
(2)
|
Net income
(loss) from continuing operations
|
|
3,574
|
|
421
|
|
3,965
|
|
|
|
|
|
|
|
Discontinued
Operations:
|
|
|
|
|
|
|
Loss from
discontinued operations
|
|
-
|
|
-
|
|
83,484
|
|
|
|
|
|
|
|
Net
Income(loss)
|
|
3,574
|
|
421
|
|
87,449
|
|
|
|
|
|
|
|
Less: Net
income (loss) attributed to noncontrolling
interests
|
|
2,084
|
|
1,112
|
|
-
|
Net income
(loss) attributed to holders of ordinary
shares
|
|
1,490
|
|
(691)
|
|
87,449
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per
share from continuing operations
|
|
|
|
|
|
|
Basic
|
|
0.01
|
|
0.00
|
|
0.02
|
Diluted
|
|
0.01
|
|
0.00
|
|
0.02
|
Income (loss)
per share from discontinued operations
|
|
|
|
|
|
|
Basic
|
|
-
|
|
-
|
|
0.41
|
Diluted
|
|
-
|
|
-
|
|
0.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares used in computing loss per
share
|
|
|
|
|
|
|
Basic
|
|
380,818,902
|
|
380,679,598
|
|
204,451,945
|
Diluted
|
|
380,818,902
|
|
380,679,598
|
|
204,451,945
|
View original
content:http://www.prnewswire.com/news-releases/renesola-announces-third-quarter-2018-results-300752730.html
SOURCE ReneSola Ltd.