April 25, 2018 - 6:30 AM EDT
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ReneSola Announces Fourth Quarter and Full Year 2017 Results from Continuing Operations

SHANGHAI, April 25, 2018 /PRNewswire/ -- ReneSola Ltd ("ReneSola" or the "Company") (www.renesolapower.com) (NYSE: SOL), a leading solar project developer and operator, today announced its unaudited financial results from continuing operations for the fourth quarter and full year ended December 31, 2017.

ReneSola Logo (PRNewsfoto/ReneSola Ltd.)

Unless otherwise specified, the results presented herein exclude discontinued operations. Discontinued operations relate to the Company's manufacturing business (including polysilicon, solar wafer, solar cell and solar module manufacturing) and LED distribution business which were disposed of in the third quarter of 2017. The Company's full financial results including discontinued operations are not available at this time.

Mr. Xianshou Li, ReneSola's Chief Executive Officer, commented, "2017 was a transformative year for the Company.  We exited the manufacturing business, becoming a pure play in the rapidly growing project development market. As a result, the fundamentals for our project business significantly improved. We achieved profitability and maintained a healthy balance sheet, providing the financial flexibility to drive growth. In 2017, we successfully connected 270 MW of solar rooftop projects in China and entered into the Hungarian market with a pipeline of 38.4 MW. Additionally, our overall solar power project pipeline remains solid at around 1.1 GW."

Li continued, "Fourth quarter results were largely in-line with our expectations. On a year-over-year basis, Q4 revenue growth was over 60%, and operating income was up over 136%. We remain excited about the opportunities ahead of us, and believe that our talented team, diversified geographic coverage and track record of success at every stage of project development will position us for profitable growth."

Fourth Quarter 2017 Highlights


Q4 2017

($ in million)

Q/Q Change

Y/Y Change

Revenue

$64.8

+78.6%

+61.1%

Gross Profit

$6.8

+7.3%

+71.5%

Operating Income

$4.9

+28.2%

+136.1%

EBITDA

$4.7

-28.6%

+94.5%

Income (loss) before Income
Tax and Noncontrolling interests from
Continuing Operations

$2.0

-49.8%

+14.8%

 

  • Revenue was $64.8 million, compared to the guidance range of $55 million to $60 million;
  • Gross margin was 10.5%, compared to 17.5% in Q3 2017 and 9.9% in Q4 2016;
  • Income before income tax and noncontrolling interests from continuing operations was $2.0 million, compared to $4.0 million in Q3 2017 and $1.7 million in Q4 2016;
  • Recognized revenue of $44.4 million from sales of distributed generation (DG) projects in China, community solar projects in the United States and utility projects in Turkey;
  • Recognized revenue of $15.4 million from EPC services for 25 MW of DG projects in China;
  • Recognized revenue from the sale of electricity of $5.0 million;
  • Connected 76.8 MW of rooftop projects in China which the Company intends to hold; and
  • Solar power project pipeline of approximately 1.1 GW, of which 546.5 MW are late-stage.

Full Year 2017 Highlights


2017

($ in million)

2016

($ in million)

Y/Y Change

Revenue

$103.0

$80.5

+27.9%

Gross Profit

$14.1

$7.2

+95.4%

Operating Income

$6.6

$2.3

+179.1%

EBITDA

$11.6

$4.7

+149.4%

Income (loss) before Income Tax
and Noncontrolling interests from
Continuing Operations

$3.5

$0.2

+1,447.6%

 

  • Revenue increased 27.9% to $103.0 million from $80.5 million in 2016;
  • Gross margin was 13.7%, compared to 9.0% in 2016;
  • Income before income tax and noncontrolling interests from continuing operations was $3.5 million, compared to $0.2 million in 2016;
  • Recognized revenue of $64.8 million from sales of solar projects;
  • Recognized revenue of $25.9 million from the EPC business;
  • Recognized revenue from the sale of electricity of $12.3 million; and
  • Connected a total of 270 MW of rooftop projects in China.

Fourth Quarter 2017 Financial Results

Revenue from continuing operations was $64.8 million was up 78.6% q/q and up 61.2% y/y. 

  • Revenue from the Project Development business was $44.4 million as we recognized revenue from sales of projects of 44.2 MW in China, 8.1 MW in Turkey and 13.3 MW in Minnesota.
  • Revenue from the EPC business was $15.4 million as we recognized revenue from the provision of EPC services of 25 MW in China.
  • Revenue from the sale of electricity was $5.0 million. The Company generated 22.6 million kwh of electricity from its operating projects in China during the quarter.

Gross profit of $6.8 million was up 7.3% q/q and 71.5% y/y. Gross margin was 10.5%, compared to 17.5% in Q3 2017 and 9.9% in Q4 2016. 

Operating expenses were $2.0 million, down from $2.5 million in Q3 2017 and up slightly from $1.9 million in Q4 2016. Sales and marketing expenses were $0.6 million, essentially flat when compared to Q3 2017.  General and administrative expenses were $1.7 million, down modestly from $1.9 million in Q3 2017.

Operating income was $4.9 million, compared to $3.8 million in Q3 2017 and $2.1 million in Q4 2016. 

Total non-operating expenses of $2.9 million included interest expenses of $1.1 million and foreign exchange loss of $1.7 million.

Income before income tax and noncontrolling interests from continuing operations was $2.0 million, compared to $4.0 million in Q3 2017 and $1.7 million in Q4 2016. 

Financial Position

The Company had cash and cash equivalents of $13.4 million as of December 31, 2017, compared to $5.2 million as of September 30, 2017. Long-term borrowings were $32.5 million as of December 31, 2017, associated with the Romanian projects. Other long-term liabilities were $67.5 million as of Decemember 31, 2017, associated with the financial leasing payables for rooftop projects in China.

Full Year 2017 Financial Results

Revenue from continuing operations was $103.0 million was up 27.9% y/y. 

  • Revenue from the Project Development business was $64.8 million.
  • Revenue from the EPC business was $25.9 million.
  • Revenue from the sale of electricity was $12.3 million.

Gross profit of $14.1 million was up 95.4% y/y. Gross margin was 13.7%, compared to 9.0% in 2016. 

Operating expenses were $7.6 million, up from $4.9 million in 2016. Sales and marketing expenses were $1.7 million, up from $0.5 million in 2016. General and administrative expenses were $6.2 million, down from $6.8 million in 2016.

Operating income was $6.6 million, compared to $2.3 million in 2016. 

Total non-operating expenses of $3.0 million included interest expenses of $3.9 million and foreign exchange gains of $0.9 million.

Income before income tax and noncontrolling interests from continuing operations was $3.5 million, compared to $0.2 million in 2016. 

Recent Business Updates

  • The Company are now in late stage discussion with a strategic investor to form a partnership to co-own the Company's China DG Holdco. The investor plans to inject 200 million RMB in cash into the Holdco, in exchange for minority interest of the Holdco. We are hoping to finalize the details of our partnership in a few days.
  • In recent months the Company successfully penetrated the Hungarian solar market, securing a project pipeline of 38.4 MW. Additionally, the Comapny is developing solar projects in other new markets, including Spain, South Korea and India. In Spain, the Company currently has an early-stage pipeline of 162 MW.
  • In the first quarter of 2018, the Company was awarded 16 solar projects in France with a combined capacity of 4.65 MW.
  • In March 2018, the Company announced that it formed a strategic partnership with Green City Energy, a subsidiary of Green City e.V., a Munich, Germany-based project developer and financier focused on building, financing and operating renewable energy power plants in selected European markets, to jointly develop four solar parks in the south of France with a total installed capacity of 69 MW, generating approximately 105 million kWh of solar power per year.
  • In March 2018, the Company announced that Mr. Weiguo Zhou, an independent director and a member of compensation committee and nominating and corporate governance committee, was appointed interim Chief Financial Officer. Mr. Zhou succeeds Maggie Ma, whose resignation was effective February 28. Mr. Zhou has stepped down as an independent director during the period he serves as interim Chief Financial Officer and remains a member of the board of directors and a member of compensation committee and nominating and corporate governance committee.

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 over 187 MW of rooftop projects in operation, which are concentrated in a handful of eastern provinces of China with attractive development environments. As of December 31, 2017, the Company had over 28 MW of rooftop projects under construction and anticipates owning approximately 350-400 MW of rooftop projects in China by the end of 2018.

Operating Assets

Capacity (MW)

China DG

187.3

- Zhejiang& Shanghai

66.7

- Anhui

29.6

- Henan

57.9

- Jiangsu

8.6

- Hebei

17.1

- Shandong

7.4

Romania

15.4

United Kingdom

9.3

Total

212.0

As of December 31, 2017, the Company currently has 4.6 MW of completed projects for sale.

Completed Projects for Sale

Capacity (MW)

Turkey

4.6

Total

4.6

Project Pipeline

As of December 31, 2017, the Company had a pipeline of over 1.1 GW of projects in various stages, of which 546.5 MW are projects that are late-stage. 92.2 MW of these 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 whose controlling power can be purchased by us once the late stage is reached, and (ii) projects for which 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

188.4

30.9

Canada

18.8

8.6

Turkey

120.4[1]

10.4

Poland

55.0

14.0

Hungary

38.4

-

China DG

125.5

28.3

Total

546.5

92.2

 

[1] With the start of operation, ReneSola holds 50% of the economics in the projects, which are held for sale and expected to be sold in the normal course upon connection or shortly thereafter.

 

China

China: Late-stage Pipeline

Capacity

(MW)

Business Model

-Zhejiang & Shanghai

69.1

IPP

-Fujian & Guangdong

15.1

IPP

-Jiangsu

14.0

IPP

-Anhui

7.0

IPP

-Henan

5.1

IPP

-Shandong

15.2

IPP

China DG

125.5


United States

In the U.S, the Company has a late-stage pipeline of 188.4 MW, 30.9 MW of which are under construction and are expected to be connected to the grid in the second quarter of 2018.

US: Late-stage Pipeline

Location

Capacity

(MW)

PPA/FiT

Term

Start

Date

COD

Business Model

NC-North

NC

6.8

PPA

15 Years

2017 Q3

2018 Q1

Project Development

RP-NC

NC

24.1

PPA

15 Years

2017 Q3

2018 Q2

Project Development

Utah

UT

10.7

PPA

20 Years

2018 Q2

2018 Q4

Project Development

RP-MN

MN

37.5

In Progress

25 Years

2018 Q2

2018 Q4 -
2019 Q1

Project Development

New York

NY

7.7

In Progress

TBD

2018 Q2

2018 Q4

Project Development

RP-CA

CA

13.6

Partial

20 Years

2018 Q3

2019

Project Development

Oregon

OR

23.0

In Progress

TBD

2019

2019

Project Development

Alpine

TX

65.0

In Progress

TBD

2019

2019

Project Development

Total


188.4






Canada

In Canada, the Company has a late-stage pipeline of 18.8 MW projects, 8.6 MW of which are under construction and are expected to be connected to the grid in the third quarter of 2018. These 8.6 MW projects are eligible for Canada's FiT3 Scheme.

Canada: Late-stage Pipeline

Location

Capacity

(MW)

PPA/FiT

Term

Start Date

COD

Business Model

FiT3

Ontario

8.6

FiT3

20 Years

2017 Q4

2018 Q3

Project Development

FiT4

Ontario

10.2

FiT4

20 Years

2018

2019

Project Development

Poland

In Poland, the Company has a late-stage pipeline of 55 MW projects, 14 MW of which are under construction and are expected to be connected to the grid in the second quarter of 2018. The rest of the 41 MW of projects are expected to be connected to the grid in late 2018.

Poland:
Late-stage
Pipeline

Project Info

Capacity

(MW)

PPA/FiT

Price ($/KWh)

Term

Start Date

COD

Business
Model

Auction 2016 Dec

13 individual
projects, 1MW each

13.0

FiT (CfD)

0.1150

15 Years

2017 Q2

2018 Q2

IPP

Auction 2017 Jun

42 individual
projects, 1MW each

42.0

FiT (CfD)

0.1080-0.1100

15 Years

2018 Q2

(1MW is under
construction)

2018 Q4

IPP

Total


55.0







Turkey

In Turkey, the Company has a late-stage pipeline of 120.4 MW projects, 10.4 MW of which are  under construction and are expected to be connected to the grid in the first half of 2018.

Turkey:

Late-stage Pipeline (Capacity MW)

Under
construction

To be
constructed

in 2018

FiT (USD/KWh)

Term

Business Model

120.4

10.4

110.0

0.1060-0.1330

10 Years

Project Development

Other Geographies

Others:
Late-stage
Pipeline

Project

Capacity

(MW)

PPA/FiT

Price ($ / kwh)

Term

Start Date

COD

Business Model

Hungary

Portfolio of "Micro PPs", 0.5 MW each

38.4

FiT

Over $0.124

25 Years

2018 Q2

2018 Q4

Project Development

Outlook

For the first quarter of 2018, the Company's project business is expected to generate revenue in the range of $30 to $35 million and overall gross margin in the range of 15% to 20%. During the first quarter of 2018, the Company expects to connect 5 MW to 10 MW of DG projects in China, and to monetize 5 MW projects in international markets.

For 2018, the Company expects to generate revenue in the range of $130 to $140 million with overall gross margin in the range of 20 to 25%. The Company intends to connect 150 MW to 200 MW of DG projects in China, and to monetize 50 MW to 70 MW projects in international markets.

Conference Call Information

ReneSola's management will host an earnings conference call on April 25, 2018 at 8:30 a.m. U.S. Eastern Time (8:30 p.m. China Time).

Dial-in details for the earnings conference call are as follows:


Phone Number

Toll-Free Number

United States

+1 8456750437

+1 8665194004

Hong Kong

+852 30186771

+852 800906601

Mainland China

+86 8008190121

+86 4006208038


Other International

+65 67135090


Please dial in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is 7074737.

A replay of the conference call may be accessed by phone at the following numbers until May 3, 2018.  To access the replay, please again reference the conference passcode 7074737.


Phone Number

Toll-Free Number

United States

+1 6462543697

+1 8554525696

Hong Kong

+852 30512780

+852 800963117

Mainland China

+86 8008700206

+86 4006022065


Other International

+61 281990299


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
[email protected]

The Blueshirt Group Asia
Mr. Gary Dvorchak, CFA
+86 (138) 1079-1480
[email protected]

In the United States:

The Blueshirt Group
Mr. Ralph Fong
+1 (415) 489-2195
[email protected]

 

 RENESOLA LTD 

 Unaudited Consolidated Balance Sheets 

 (US dollars in thousands) 



 Dec 31, 


 Sep 30, 


 Dec 31, 



2017


2017


2016

 ASSETS 







 Current assets: 







 Cash and cash equivalents  


13,429


5,156


3,965

 Restricted cash  


-


-


-

 Accounts receivable, net of allowances for doubtful accounts 


23,312


9,992


86

 Advances to suppliers-current, net  


380


348


4,221

 Value added tax recoverable 


15,229


13,357


4,893

 Prepaid income tax 


-


-


60

 Prepaid expenses and other current assets  


10,543


10,608


1,893

 Project assets current 


76,556


52,171


48,177

 Deferred project costs current 


17,957


17,788


-

 Contract costs 


12,669


46,827


-

 Assets of discontinued operations current  


-


-


444,199

 Total current assets  


170,075


156,247


507,494








 Property, plant and equipment, net 


154,659


138,056


20,159

 Deferred tax assets-non-current, net 


59


130


148

 Advances for purchases of property, plant and equipment  


-


-


416

 Project assets non-current 


7,481


7,470


6,710

 Deferred project costs non-current 


-


-


16,375

 Other non-current assets   


3,425


5,264


3,251

 Assets of discontinued operations non-current  


-


-


533,853

 Total assets  


335,699


307,167


1,088,406








 LIABILITIES AND SHAREHOLDERS' EQUITY 














 Current liabilities: 







 Short-term borrowings  


6,606


-


-

 Accounts payable  


25,788


15,803


-

 Advances from customers-current 


237


23,175


505

 Amounts due to related parties  


60,370


34,213


-

 Other current liabilities  


30,515


33,113


8,350

 Income tax payable 


330


94


93

 Salary payable   


560


182


-

 Deferred project revenue current  


20,792


-


-

 Liabilities of discontinued operations current  


-


-


895,485

 Total current liabilities  


145,198


106,580


904,433








 Long-term borrowings  


32,514


30,363


28,836

 Deferred project revenue non-current  


-


26,903


32,243

 Failed sale-lease back and capital lease liabilities   


67,505


56,466


-

  Held-for-sale liabilities non-current   


-


-


56,749

 Total liabilities  


245,217


220,312


1,022,261








 Shareholders' equity 







   Common shares  


519,226


519,139


476,658

   Additional paid-in capital  


9,012


8,438


8,229

 Accumulated deficit   


(435,518)


(437,209)


(469,975)

   Accumulated other comprehensive income  


(2,238)


(3,513)


51,233

 Total equity attribute to ReneSola Ltd 


90,482


86,855


66,145

 Total  shareholders' equity 


90,482


86,855


66,145








 Total liabilities and shareholders' equity  


335,699


307,167


1,088,406


 

 

 RENESOLA LTD 

 Unaudited Consolidated Statements of Income 

 (US dollar in thousands, except ADS and share data) 












 Three Months Ended 


 Twelve Months Ended 


 Dec 31, 2017 


 Sep 30, 2017 


 Dec 31, 2016 


 FY2017 


 FY2016 











 Net revenues  

64,809


36,294


40,217


102,974


80,505

  Total net revenues 

64,809


36,294


40,217


102,974


80,505

 Cost of revenues  

(57,975)


(29,926)


(36,232)


(88,842)


(73,272)

 Gross profit 

6,834


6,368


3,985


14,132


7,233

 GP% 

10.54%


17.55%


9.91%


13.7%


9.0%











 Operating (expenses) income: 










 Sales and marketing  

(617)


(601)


(97)


(1,710)


(549)

 General and administrative  

(1,664)


(1,888)


(1,738)


(6,179)


(6,829)

 Other operating income 

355


(50)


(72)


313


2,494

 Total operating expenses  

(1,926)


(2,539)


(1,907)


(7,576)


(4,884)











 Income from operations   

4,908


3,829


2,078


6,556


2,349


7.6%


10.5%


5.2%


6.4%


2.9%

 Non-operating (expenses) income: 










 Interest income  

(7)


26


(61)


51


4

 Interest expense 

(1,113)


(1,129)


(109)


(3,936)


(1,842)

 Foreign exchange gains (losses) 

(1,740)


1,236


(176)


895


(1,073)

 Fair value change of warrant liability   

-


-


-


-


578

 Gains on repurchase of convertible notes  









211

 Other loss 

(58)


5


-


(44)


-

 Income (loss) before income tax, noncontrolling interests 

1,990


3,967


1,732


3,522


227











 Income tax (expense) benefit 

(290)


(2)


89


(322)


(132)

 Net income (loss) from continuing operations 

1,700


3,965


1,821


3,200


95











 Discontinued Operations: 










 Income/(loss) from discontinued operations 

-


83,484


(27,284)


31,258


(34,793)











 Net Income/(loss)  

1,700


87,449


(25,463)


34,458


(34,698)











 Less: Net income (loss) attributed to noncontrolling interests 

-


-


-


-


-

 Net income (loss) attributed to holders of ordinary shares 

1,700


87,449


(25,463)


34,458


(34,698)





















 Income per share from continuing operations  










   Basic 

0.00


0.02


0.01


0.01


0.00

   Diluted 

0.00


0.02


0.01


0.01


0.00

 Income (loss) per share from discontinued operations  










   Basic 

-


0.41


(0.14)


0.13


(0.17)

   Diluted 

-


0.41


(0.14)


0.13


(0.17)































 Weighted average number of shares used in computing loss per share 










   Basic 

380,555,641


204,451,945


201,774,449


246,899,286


202,229,767

   Diluted 

380,579,653


204,451,945


201,844,449


246,905,289


202,403,904






























































 Three Months Ended 


 Twelve Months Ended 


 Dec 31, 2017 


 Sep 30, 2017 


 Dec 31, 2016 


 Dec 31, 2017 


 Dec 31, 2016 

 Net income (loss) 

1,700


87,449


(25,463)


34,458


(34,698)

 Other comprehensive income (loss) 










 Foreign exchange translation adjustment 

1,275


(56,898)


233


(53,471)


(10,344)

 Other comprehensive income (loss) 

1,275


(56,898)


233


(53,471)


(10,344)











 Comprehensive income (loss) 

2,975


30,551


(25,230)


(19,013)


(45,042)

 Less:comprehensive loss attributable to non-controlling interest 

-


-


-


-


-

 Comprehensive income (loss) attributable to ReneSola 

2,975


30,551


(25,230)


(19,013)


(45,042)

 

 

 RENESOLA LTD 

 Unaudited Consolidated Statements of Cash Flow 

 (US dollar in thousands) 


 For the year ended December 31, 


2017


2016





 Net cash  provided by operating activities  

18,430


27,534





 Net cash provided by (used in) investing activities 

(156,354)


42,160





 Net cash provided by (used in) financing activities   

102,404


(62,374)





 Effect of exchange rate changes 

11,613


(8,029)





 Net increase (decrease) in cash and cash equivalents 

(23,907)


(709)

 Cash and cash equivalents, beginning of year (includes 33,371 of cash in assets
of discontinued operations on December 31 2016) 

37,336


38,045

 Cash and cash equivalents, end of period/year 

13,429


37,336

 

 

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SOURCE ReneSola Ltd.


Source: PR Newswire (April 25, 2018 - 6:30 AM EDT)

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