RENESOLA LTD | |||
|
By:
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/s/ Xianshou Li | |
Name: | Xianshou Li | ||
Title: | Chief Executive Officer |
Exhibit No.
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Description
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|
99.1
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Press release
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·
|
Total solar product shipments in Q2 2011 were 295.5 megawatts (“MW”), compared to 330.4 MW in Q1 2011.
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·
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Q2 2011 net revenues were US$249.3 million, a decrease of 30.6% from US$359.2 million in Q1 2011.
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·
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Q2 2011 gross profit was US$45.9 million and gross margin was 18.4%, compared to US$101.2 million and 28.2% in Q1 2011.
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·
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Q2 2011 operating income was US$23.0 million and operating margin was 9.2%, compared to US$75.6 million and 21.0% in Q1 2011.
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·
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Q2 2011 net income was US$1.8 million, representing basic and diluted earnings per share of US$0.01, and basic and diluted earnings per American depositary share (“ADS”) of US$0.02.
|
·
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Cash and cash equivalents plus restricted cash reached US$480.8 million as of June 30, 2011, compared to US$435.9 million as of March 31, 2011.
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2Q11
|
1Q11
|
2Q10
|
Q-o-Q%
|
Y-o-Y%
|
|
Total Solar Product Shipments (MW)
|
295.5
|
330.4
|
258.3
|
(10.6%)
|
14.4%
|
Wafer Shipments (MW)
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230.5
|
243.5
|
206.7
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(5.3%)
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11.5%
|
Module Shipments (MW)
|
65.0
|
86.9
|
50.6
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(25.2%)
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28.5%
|
2Q11
|
1Q11
|
2Q10
|
Q-o-Q%
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Y-o-Y%
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|
Net Revenues (US$mln)
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$249.3
|
$359.21
|
$253.9
|
(30.6%)
|
(1.8%)
|
2Q11
|
1Q11
|
2Q10
|
Q-o-Q%
|
Y-o-Y%
|
|
Gross Profit (US$mln)
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$45.9
|
$101.21
|
$76.6
|
(54.6%)
|
(40.1%)
|
Gross Margin
|
18.4%
|
28.2%
|
30.2%
|
-
|
-
|
2Q11
|
1Q11
|
2Q10
|
Q-o-Q%
|
Y-o-Y%
|
|
Operating Expenses (US$mln)
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$22.9
|
$25.6
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$24.2
|
(10.5%)
|
(5.2%)
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Operating Income (US$mln)
|
$23.0
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$75.6
|
$52.5
|
(69.6%)
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(56.2%)
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Operating Margin
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9.2%
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21.0%
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20.7%
|
-
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-
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2Q11
|
1Q11
|
2Q10
|
|
Net Income (US$mln)
|
$1.8
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$43.3
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$36.1
|
Diluted Earnings Per Share
|
0.01
|
0.24
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$0.21
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Diluted Earnings Per ADS
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0.02
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0.49
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$0.42
|
U.S. / International:
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+1-617-614-3453
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Hong Kong:
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+852-3002-1672
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International:
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+1-617-801-6888
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Passcode:
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83559070
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Mr. Tony Hung
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ReneSola Investor Relations
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|
Tel:
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+86-573-8473-9011
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Email:
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ir@renesola.com
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Mr. Derek Mitchell
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Ogilvy Financial, Beijing
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Tel:
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+86-10-8520-6284
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Email:
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sol@ogilvy.com
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Ms. Jessica Barist Cohen
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Ogilvy Financial, New York
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Tel:
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+1-646-460-9989
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Email:
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sol@ogilvy.com
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June 30,
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Mar 31,
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Dec 31,
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June 30,
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|||||||||||||
2011
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2011
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2010
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2010
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|||||||||||||
ASSETS
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||||||||||||||||
Current assets:
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||||||||||||||||
Cash and cash equivalents
|
438,124 | 388,648 | 290,702 | 171,208 | ||||||||||||
Restricted cash
|
42,690 | 47,234 | 33,640 | 75,384 | ||||||||||||
Available-for-sale investment
|
3,541 | 4,754 | 3,332 | 4,975 | ||||||||||||
Accounts receivable, net of allowances for doubtful accounts
|
104,651 | 124,659 | 81,540 | 102,629 | ||||||||||||
Inventories, net of inventory provision
|
162,571 | 152,409 | 170,599 | 164,770 | ||||||||||||
Advances to suppliers-current
|
34,160 | 31,344 | 26,315 | 18,917 | ||||||||||||
Amounts due from related parties
|
364 | 376 | 389 | 412 | ||||||||||||
Value added tax recoverable
|
51,058 | 56,279 | 44,102 | 44,341 | ||||||||||||
Income tax recoverable
|
4,939 | 2,976 | 4,021 | 811 | ||||||||||||
Prepaid expenses and other current assets
|
16,795 | 10,142 | 16,946 | 10,783 | ||||||||||||
Deferred convertible bond issue costs-current
|
1,431 | 909 | - | - | ||||||||||||
Derivative assets
|
3,252 | 3,285 | 11,660 | - | ||||||||||||
Deferred tax assets-current
|
16,923 | 13,901 | 14,763 | 25,124 | ||||||||||||
Total current assets
|
880,499 | 836,916 | 698,009 | 619,354 | ||||||||||||
Property, plant and equipment, net
|
879,935 | 842,616 | 801,472 | 743,079 | ||||||||||||
Prepaid land use right
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48,643 | 41,039 | 37,189 | 25,351 | ||||||||||||
Intangible assets
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3,629 | - | - | 425 | ||||||||||||
Deferred tax assets-non-current
|
9,995 | 8,192 | 8,526 | 27,723 | ||||||||||||
Deferred convertible bond issue costs-non-current
|
5,313 | 5,417 | - | - | ||||||||||||
Advances to suppliers-non-current
|
24,697 | 25,249 | 13,743 | 7,204 | ||||||||||||
Advances for purchases of property, plant and equipment
|
12,396 | 26,845 | 26,930 | 13,402 | ||||||||||||
Other long-lived assets
|
2,763 | 3,274 | 2,753 | 2,669 | ||||||||||||
Goodwill
|
5,638 | 5,323 | 5,323 | 5,323 | ||||||||||||
Total assets
|
1,873,508 | 1,794,871 | 1,593,945 | 1,444,530 | ||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
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||||||||||||||||
Current liabilities:
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||||||||||||||||
Short-term borrowings
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427,961 | 404,002 | 400,798 | 388,028 | ||||||||||||
Accounts payable
|
162,439 | 177,706 | 220,798 | 190,779 | ||||||||||||
Advances from customers-current
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64,631 | 60,070 | 57,396 | 51,276 | ||||||||||||
Amounts due to related parties
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- | 25 | 25 | 24 | ||||||||||||
Other current liabilities
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111,316 | 94,342 | 79,633 | 69,695 | ||||||||||||
Income tax payable
|
7,347 | 18,754 | 16,438 | 4,463 | ||||||||||||
Deferred tax liabilities
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3,350 | 1,908 | 1,778 | 70 | ||||||||||||
Derivative liabilities
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13,998 | 12,651 | 1,381 | 431 | ||||||||||||
Total current liabilities
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791,042 | 769,458 | 778,247 | 704,766 | ||||||||||||
Convertible bond payable-non-current
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200,000 | 175,000 | - | - | ||||||||||||
Long-term borrowings
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132,745 | 118,809 | 121,515 | 189,073 | ||||||||||||
Advances from customers-non-current
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70,641 | 76,734 | 76,080 | 90,198 | ||||||||||||
Warranty
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11,087 | 9,980 | 8,701 | 4,365 | ||||||||||||
Other long-term liabilities
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38,361 | 26,789 | 22,937 | 8,546 | ||||||||||||
Total liabilities
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1,243,876 | 1,176,770 | 1,007,480 | 996,948 | ||||||||||||
Shareholders' equity
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||||||||||||||||
Common shares
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422,314 | 422,254 | 422,039 | 414,585 | ||||||||||||
Additional paid-in capital
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2,133 | 2,133 | 19,858 | 21,896 | ||||||||||||
Retained earnings (accumulated deficit)
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148,841 | 149,052 | 108,387 | (12,772 | ) | |||||||||||
Accumulated other comprehensive income
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56,344 | 44,662 | 36,181 | 23,873 | ||||||||||||
Total shareholders' equity
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629,632 | 618,101 | 586,465 | 447,582 | ||||||||||||
Total liabilities and shareholders' equity
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1,873,508 | 1,794,871 | 1,593,945 | 1,444,530 |
Three Months Ended
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Six Months Ended
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|||||||||||||||||||
Jun. 30 2011
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Mar. 31 2011
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Jun. 30 2010
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Jun. 30 2011
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Jun. 30 2010
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||||||||||||||||
US$000
|
US$000
|
US$000
|
US$000
|
US$000
|
||||||||||||||||
Net revenues
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249,313 | 359,213 | 253,879 | 608,526 | 460,430 | |||||||||||||||
Cost of revenues
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(203,409 | ) | (258,040 | ) | (177,255 | ) | (461,449 | ) | (348,483 | ) | ||||||||||
Gross profit
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45,904 | 101,173 | 76,624 | 147,077 | 111,947 | |||||||||||||||
GP%
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18.4 | % | 28.2 | % | 30.2 | % | 24.2 | % | 24.3 | % | ||||||||||
Operating expenses:
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||||||||||||||||||||
Sales and marketing
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(3,200 | ) | (3,482 | ) | (1,815 | ) | (6,682 | ) | (3,241 | ) | ||||||||||
General and administrative
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(8,321 | ) | (9,995 | ) | (13,371 | ) | (18,316 | ) | (18,098 | ) | ||||||||||
Research and development
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(11,189 | ) | (12,168 | ) | (7,459 | ) | (23,357 | ) | (13,627 | ) | ||||||||||
Other general (expense) income
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(207 | ) | 25 | (1,529 | ) | (182 | ) | (3,327 | ) | |||||||||||
Total operating expenses
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(22,917 | ) | (25,620 | ) | (24,174 | ) | (48,537 | ) | (38,293 | ) | ||||||||||
Income from operations
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22,987 | 75,553 | 52,450 | 98,540 | 73,654 | |||||||||||||||
Non-operating (expenses) income:
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||||||||||||||||||||
Interest income
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1,603 | 485 | 378 | 2,088 | 479 | |||||||||||||||
Interest expenses
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(9,097 | ) | (7,033 | ) | (5,299 | ) | (16,130 | ) | (10,267 | ) | ||||||||||
Foreign exchange gain (loss)
|
906 | 4,755 | (7 | ) | 5,661 | (918 | ) | |||||||||||||
Fair value change on derivatives
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(1,355 | ) | (19,824 | ) | (147 | ) | (21,179 | ) | (147 | ) | ||||||||||
Other-than-temporary impairment loss on available-for-sale investment
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(2,666 | ) | - | - | (2,666 | ) | - | |||||||||||||
Investment (loss) income
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(7,796 | ) | 20 | 293 | (7,776 | ) | 293 | |||||||||||||
Total non-operating (expenses) income
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(18,405 | ) | (21,597 | ) | (4,782 | ) | (40,002 | ) | (10,560 | ) | ||||||||||
Income before income tax
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4,582 | 53,956 | 47,668 | 58,538 | 63,094 | |||||||||||||||
Income tax (expense)
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(2,743 | ) | (10,620 | ) | (11,607 | ) | (13,363 | ) | (15,256 | ) | ||||||||||
Net income attributed to holders of ordinary shares
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1,839 | 43,336 | 36,061 | 45,175 | 47,838 | |||||||||||||||
Earnings per share
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||||||||||||||||||||
Basic
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0.01 | 0.25 | 0.21 | 0.26 | 0.28 | |||||||||||||||
Diluted
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0.01 | 0.24 | 0.21 | 0.24 | 0.28 | |||||||||||||||
Earnings per ADS
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||||||||||||||||||||
Basic
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0.02 | 0.50 | 0.42 | 0.52 | 0.55 | |||||||||||||||
Diluted
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0.02 | 0.49 | 0.42 | 0.49 | 0.55 | |||||||||||||||
Weighted average number of shares used in computing earnings per share
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||||||||||||||||||||
Basic
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173,897,369 | 173,856,442 | 172,706,512 | 173,877,019 | 172,687,379 | |||||||||||||||
Diluted
|
173,971,905 | 179,895,439 | 172,706,512 | 195,676,823 | 172,687,379 |
RENESOLA LTD | ||||||||
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Consolidated Cash Flow Statement
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|||||||
Six Months Ended
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||||||||
June 30, 2011
|
June 30, 2010
|
|||||||
US$000
|
US$000
|
|||||||
Operating activities:
|
||||||||
Net income
|
45,175 | 47,837 | ||||||
Adjustment to reconcile net income to net cash used in operating activities:
|
||||||||
Investment income
|
7,776 | - | ||||||
Inventory write-down
|
3,366 | - | ||||||
Depreciation and amortization
|
39,656 | 24,346 | ||||||
Amortization of deferred convertible bond issuance costs and premium
|
407 | 327 | ||||||
Allowance for doubtful receivables and advance to suppliers and prepayment for purchases of property, plant and equipment
|
(1,604 | ) | 1,961 | |||||
Change in fair value of derivatives
|
21,179 | 147 | ||||||
Share-based compensation
|
2,382 | 1,360 | ||||||
Loss on impairment of long-lived assets
|
192 | - | ||||||
Loss on disposal of long-lived assets
|
224 | 133 | ||||||
Other-than-temporary impairment loss on available-for-sale investment
|
2,666 | - | ||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(25,818 | ) | 5,114 | |||||
Inventories
|
7,962 | (25,861 | ) | |||||
Advances to suppliers
|
(17,480 | ) | (7,859 | ) | ||||
Amounts due from related parties
|
8 | 31 | ||||||
Value added tax recoverable
|
(5,847 | ) | 7,791 | |||||
Prepaid expenses and other current assets
|
415 | (4,463 | ) | |||||
Derivative assets and liabilities
|
(503 | ) | - | |||||
Prepaid land use right
|
1,395 | 404 | ||||||
Accounts payable
|
(61,963 | ) | 96,277 | |||||
Advances from customers
|
373 | 8,496 | ||||||
Income tax payables
|
(10,220 | ) | 987 | |||||
Other current liabilities
|
(6,483 | ) | (2,085 | ) | ||||
Other long-term liabilities
|
6,613 | - | ||||||
Other long-term assets
|
(197 | ) | - | |||||
Deferred taxes
|
250 | 12,291 | ||||||
Accrued warranty cost
|
2,176 | 1,141 | ||||||
Net cash provided by operating activities
|
12,100 | 168,375 | ||||||
Investing activities:
|
||||||||
Purchases of property, plant and equipment
|
(52,501 | ) | (53,562 | ) | ||||
Advances for purchases of property, plant and equipment
|
(2,171 | ) | 6,083 | |||||
Purchases of other long-lived assets
|
(121 | ) | 67 | |||||
Proceeds from disposal of property, plant and equipment
|
- | 51 | ||||||
Changes in restricted cash
|
(8,131 | ) | (49,631 | ) | ||||
Cash consideration for acquisition, net of cash received
|
(1,102 | ) | - | |||||
Net proceeds from settlement of financial assets
|
(2,972 | ) | 79 | |||||
Net cash used in investing activities
|
(66,998 | ) | (96,913 | ) | ||||
Financing activities:
|
||||||||
Proceeds from bank borrowings
|
389,063 | 447,676 | ||||||
Repayment of bank borrowings
|
(361,691 | ) | (422,239 | ) | ||||
Cash paid for issuance cost
|
- | (252 | ) | |||||
Proceeds from exercise of stock options
|
148 | 304 | ||||||
Cash paid for repurchase of convertible bonds
|
- | (32,715 | ) | |||||
Proceeds from issuance of convertible bonds
|
200,000 | - | ||||||
Payment of convertible notes issuance expenses
|
(7,150 | ) | - | |||||
Purchase of conversion spread hedges
|
(24,703 | ) | - | |||||
Net cash provided by (used in) financing activities
|
195,667 | (7,226 | ) | |||||
Effect of exchange rate changes
|
6,653 | 164 | ||||||
Net increase in cash and cash equivalent
|
147,422 | 64,400 | ||||||
Cash and cash equivalents, beginning of period
|
290,702 | 106,808 | ||||||
Cash and cash equivalents, end of period
|
438,124 | 171,208 |