UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN
PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of December 2021
Commission File Number: 001-33911
RENESOLA LTD
3rd floor, 850 Canal St
Stamford, CT 06902
U.S.A.
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| RENESOLA LTD | ||
| By: | /s/ Ke Chen | |
| Name: | Ke Chen | |
| Title: | Chief Financial Officer | |
Date: December 8, 2021
Exhibit Index
| Exhibit No. | Description | |
| Exhibit 99.1 | Press Release | |
| Exhibit 99.2 | 2021 Third Quarter Financial Results |
Exhibit 99.1
ReneSola Power Reports Third Quarter 2021 Financial
Results and
Responds to Misleading Short Report
-- Revenue of $15.5 million, up 59% y/y
-- Sixth consecutive quarter of profitability
Stamford, CT, December 7, 2021 – ReneSola Ltd (“ReneSola Power” or the “Company”) (www.renesolapower.com) (NYSE: SOL), a leading fully integrated solar project developer, today announced its unaudited financial results for the third quarter ended September 30, 2021. ReneSola Power’s third quarter 2021 financial results and management commentary can be found by accessing the Company's shareholder letter on the quarterly results page of the Investor Relations section of ReneSola Power's website at: http://ir.renesolapower.com.
ReneSola Power will hold a conference call today to discuss results. During the conference call, the Company will respond to the false and misleading report published last week by an obscure short-selling firm.
Conference Call Details
ReneSola Power will hold a conference call today, December 7, 2021 at 4:30 p.m. U.S. Eastern Time (5:30 a.m. China Standard Time on December 8, 2021) to discuss financial results.
Please register in advance to join the conference call using the link provided below and dial in 10 minutes before the call is scheduled to begin. Conference call access information will be provided upon registration.
Participant Online Registration: http://apac.directeventreg.com/registration/event/1598668
A replay of the conference call may be accessed by phone at the following numbers until December 13, 2021. To access the replay, please reference the conference ID 1598668.
| Phone Number | Toll-Free Number | |
| United States | +1 (646) 254-3697 | +1 (855) 452-5696 |
| Hong Kong | +852 3051-2780 | +852 8009-63117 |
| Mainland China |
+86 (800) 870-0206 +86 (400) 602-2065 |
|
| Other International | +61 (2) 8199-0299 |
A webcast of the conference call will be available on the ReneSola Power website at http://ir.renesolapower.com.
About ReneSola Power
ReneSola Power (NYSE: SOL) is a leading global solar project developer and operator. The Company focuses on solar power project development, construction management and project financing services. With local professional teams in more than 10 countries around the world, the business is spread across a number of regions where the solar power project markets are growing rapidly, and can sustain that growth due to improved clarity around government policies. The Company's strategy is to pursue high-margin project development opportunities in these profitable and growing markets; specifically, in the U.S. and Europe, where the Company has a market-leading position in several geographies, including Poland, Hungary, Minnesota and New York.
For investor and media inquiries, please contact:
In the United States:
ReneSola Power
Mr. Adam Krop
+1 (347) 577-9055 x115
IR.USA@renesolapower.com
The Blueshirt Group
Mr. Gary Dvorchak, CFA
+1 (323) 240-5796
gary@blueshirtgroup.com
In China:
ReneSola Power
Ms. Ella Li
+86 (21) 6280-9881x 8004
ir@renesolapower.com
Exhibit 99.2
December 7, 2021
Fellow Shareholders,
Before we review third quarter results, we need to start by addressing the false and misleading report about us published last week by an obscure short-selling firm. After studying the Grizzly report, we conclude that the author has very limited knowledge of how solar project development works and has manipulated facts that are readily available to the public to create an impression of nefarious activity that is false, inappropriate, and misleading. We encourage all our stakeholders to read the report and listen to our response, which will be presented on the earnings conference call taking place today. We believe reading the report with a critical eye and keeping in mind the author’s financial incentives (they have a previously established short position in our stock), will enable readers to fully understand the deeply flawed and purposefully misleading narrative created by that firm.
Turning to third quarter results, we are comfortable with our performance. Revenue was below our guidance, while gross margin was at the high end of our guidance range. Most importantly, we were profitable despite the lower-than-expected revenue. Our highest financial priority is the bottom line, and all our decisions and actions are focused on profit as opposed to revenue. We sustained our profitability by two means: the strong gross margin, which reflects this profit focus, and tight control of expenses. We sustained gross margin through our strategy of selling projects at their most profitable point, NTP, and through the support of our recurring, high margin IPP electricity sales. Operating expenses declined sequentially, reflecting our discipline.
The revenue miss does not concern us and should not bother you either. We often point out that project sales are lumpy with uncertain timing. On an annual basis, the lumpiness is smoothed out and we can more accurately forecast our level of activity. On a quarterly basis, sales can easily move between periods, skewing the results for a quarter but having no impact on the economics of our business. This was the case in the third quarter. Two project sales we expected did not close. One was a project in Spain that we have discussed before. Our original buyer backed out of the sale, but we found a new buyer (at a somewhat higher price!) and this deal should close in December. Revenue from the Spain project is around $2 million. Similarly, around $6 to $7 million of projects in Pennsylvania were delayed for administrative reasons and should close either in Q4 or Q1 2022.
We are bullish on our prospects and that of our industry. Demand is strong around the world, and project pricing is firm, as rising PPA prices offset headwinds such as supply shortages, material cost inflation, and tariffs. Our pipeline is robust and growing rapidly, exceeding our expectations. At the start of the year, we established a goal of growing the quality mid-to-late stage pipeline to 2 GW. We achieved 1.8 GW in the third quarter and expect to end the year close to 2.2 GW. Furthermore, we are still in the early stages of exploiting the many opportunities in storage. Storage is quickly becoming a critical element of larger projects in the U.S. and Europe, and we intend to build a substantial pipeline of solar plus storage and independent storage projects in the quarters ahead.
With that overview, we will now review the details of our third quarter operating and financial performance.
Q3 2021 Financial Highlights: Sustained Profit Despite Revenue Shortfall
| ● | Revenue below guidance; up 59% y/y; down 16% sequentially |
| ● | Gross margin high end of guidance, mainly due to high margin NTP sales in the USA. |
| ● | High margin recurring IPP revenue stable at over $5 million |
| ● | Profitable GAAP and non-GAAP, net income1 down y/y and sequentially |
| ● | Sixth consecutive profitable quarter |
| (in $ millions) | Q3 2021 | Q2 2021 | Q/Q Change | |||||||||
| Revenue | $ | 15.5 | $ | 18.5 | -16 | % | ||||||
| GAAP gross profit | $ | 6.1 | $ | 11.3 | -46 | % | ||||||
| GAAP operating income | $ | 2.7 | $ | 7.3 | -63 | % | ||||||
| Non-GAAP operating income | $ | 3.2 | $ | 8.8 | -64 | % | ||||||
| EBITDA | $ | 3.6 | $ | 9.5 | -62 | % | ||||||
| Adjusted EBITDA | $ | 4.5 | $ | 10.0 | -55 | % | ||||||
| GAAP net income attributed to ReneSola Power | $ | 0.7 | $ | 7.0 | -90 | % | ||||||
| Non-GAAP net income attributed to ReneSola Power | $ | 1.7 | $ | 7.5 | -77 | % | ||||||
Revenue was composed as follows:
| Revenue Breakdown | Q3’21 Revenue (US$'000) | % of Total Revenue | ||||||
| Project Development | $ | 10,015 | 64.45 | % | ||||
| IPP | $ | 5,375 | 34.59 | % | ||||
| Others | $ | 150 | 0.97 | % | ||||
| Total | $ | 15,540 | 100.00 | % | ||||
“IPP” consists mainly of the sale of electricity in China.
“Other” refers to operations and maintenance.
Achieving Pipeline Growth Goal
At the start of the year, we planned to grow our mid-to-late stage pipeline to over 2 GW before year end. Due to outstanding execution in the face of many challenges in our industry, we ended the quarter with a high quality project pipeline2 of approximately 1.8 GW, with about 15 MW under construction. In Q3 we sold 6 MW of projects in Poland and 5.5 MW of solar projects in Maine. (Since entering the downstream business, ReneSola Power has completed ~850 MW of projects. We retain 173 MW of operating assets, which generate our recurring IPP revenue.)
1 Attributable to ReneSola Power common shareholders, removes net attributable to non-controlling interests
2 Mid-to-late stage project pipeline includes those with the legal right to develop based on definitive agreements, including those held by project Special Purpose Vehicles (“SPVs”) or joint-venture project SPVs whose controlling power belongs to ReneSola Power.
The following table details our mid-to-late stage project pipeline by location:
| Project Location | Mid-to-late stage (MW) | |||
| U.S. | 464.0 | |||
| Poland | 552.0 | |||
| Spain | 309.0 | |||
| U.K. | 214.0 | |||
| Germany | 37.0 | |||
| France | 100.0 | |||
| Hungary | 52.0 | |||
| China (IPP) | 113.0 | |||
| Total | 1,841.0 | |||
In our year-end letter, we will present a new and attractive pipeline growth goal for 2022.
Detailed Review of Pipeline by Region
Our performance is strong across most regions of the world, as reflected in our pipeline.
United States
Our mid-to-late-stage projects total 464 MW, of which 76MW are community solar projects in Minnesota, Maine, and New York. Additionally, we have projects under development in Florida, Pennsylvania, Illinois, and California. Meanwhile, we operate 24.1 MW of utility projects in North Carolina.
| U.S.A. | Location | Capacity (MW) | Project Type | Status | Expected NTP/Sale | Business Model | ||||||
| MN-VOS-2 | MN | 10 | Community Solar | Under Development | 2021/2022 | NTP Sale | ||||||
| New York | NY | 50 | Community Solar | Under Development | 2022 | NTP Sale | ||||||
| Florida | FL | 100 | Utility Scale | Under Development | 2022/2023 | NTP Sale | ||||||
| Maine | ME | 16 | DG & Community Solar | Under Development | 2021/2022 | NTP Sale | ||||||
| Welcome Solar | PA | 70 | Utility Scale PV+Storage | Under Development | 2021/2022 | NTP Sale | ||||||
| California | CA | 28 | Utility PV+Storage | Under Development | 2022/2023 | NTP Sale | ||||||
| Illinois | IL | 50 | Utility PV+Storage | Under Development | 2023/2024 | NTP Sale | ||||||
| California | CA | 140 | Utility PV+Storage | Under Development | 2024/2025 | NTP Sale | ||||||
| Total | 464 |
Poland
Business momentum accelerated in recent months. At quarter-end we had ~552 MW of projects in our mid-to-late stage pipeline.
| Poland | Project | Capacity (MW) | Project Type | Status | Expected NTP/Sale | Business Model | ||||||
| Auction 2021 | 1 MW Solar farms | 33.0 | Ground-mounted | Ready to Build | 2021 | RTB Sale | ||||||
| Auction 2022 | Including smaller scale projects | ~519.0 | Ground-mounted | Under Development | 2022/2024 | RTB Sale | ||||||
| Total | ~552.0 |
Spain
We have a mid-to-late stage pipeline of 309 MW of ground-mounted projects located in various regions across Spain.
| Spain | Location | Capacity (MW) | Project Type | Status | Expected NTP/Sale | Business Model | ||||||
| Caravaca (two projects) | Murcia | 12 | Ground-mounted | Under Development | 2021 | RTB Sale | ||||||
| Castillo (three projects) | Alicante | 24 | Ground-mounted | Under Development | 2022 | RTB Sale | ||||||
| Project Portfolio | Spain | 273 | Ground-mounted | Under Development | 2023/2024 | RTB Sale | ||||||
| Total | 309 |
U.K.
We have a mid-to-late stage pipeline of 214 MW of ground-mounted projects under development.
| U.K. | Capacity (MW) | Project Type | Status | Expected NTP/Sale | Business Model | |||||
| UK- Novergy | 190 | Solar only Ground-mounted | Under Development | 2022/2023 | RTB Sale | |||||
| UK- Innova | 24 | Solar-plus-storage Ground-mounted | Under Development | 2021/2022 | RTB Sale | |||||
| Total | 214 |
Germany
We have secured a late-stage pipeline of 37 MW of ground-mounted projects now under development.
| Germany | Capacity (MW) | Project Type | Status | Expected NTP/Sale | Business Model | |||||
| Project Portfolios -Kentzlin | 12 | Ground-mounted | Under Development | 2022 | RTB Sale | |||||
| Project Portfolios -Germany | 25 | Ground-mounted | Under Development | 2023 | RTB Sale | |||||
| Total | 37 |
France
In France, we have a project pipeline of 100 MW, all of which are ground-mounted projects.
| France | Location | Capacity (MW) | Project Type | Status | Expected NTP/Sale | Business Model | ||||||
| Project Portfolios | France | 82.0 | Ground mounted | Under Development | 2022/2023 | RTB Sale | ||||||
| Project Portfolios | France | 18.0 | Ground mounted | Under Development | 2021/2022 | Development Services | ||||||
| Total | 100.0 |
Hungary
In Hungary, we invest in small-scale DG projects. Our late-stage pipeline has a total capacity of 52 MW. These projects are under development.
| Hungary | Location | Capacity (MW) | Project Type | Status | Expected NTP/Sale | Business Model | ||||||
| Portfolio with FIT | Hungary | 4.0 | Ground- mounted | Ready-to-Build | 2021/2022 | Build-Transfer | ||||||
| Portfolio with PPAs | Hungary | 48.0 | Ground- mounted | Under Development | 2022/2023 | Build-Transfer | ||||||
| Total | 52.0 |
Solid Operating Asset Portfolio with Attractive Long-term Growth Plan
We currently own 173 MW of operating projects, of which we operate 148.5 MW of rooftop projects in China, and 24.1 MW in the U.S. In the third quarter, we connected about 3MW of newly developed projects in China. The China rooftop solar projects are concentrated in attractive eastern provinces with Commercial and Industrial (C&I) off-takers.
| Operating Assets | Capacity (MW) | ||
| China DG | 148.5 | ||
| - Zhejiang | 37.4 | ||
| - Henan | 46.1 | ||
| - Anhui | 30.9 | ||
| - Hebei | 16.9 | ||
| - Jiangsu | 10.8 | ||
| - Shandong | 2.0 | ||
| - Fujian | 4.4 | ||
| United States | 24.1 | ||
| Total | 172.6 |
Looking ahead, our new asset development pipeline is 113 MW, located in various provinces across China. All projects in China are intended to be owned and operated by us as IPP assets. During 2021, we significantly slowed our pace of development, because target projects could not meet our IRR goals due to high material costs and other burdens. We intend to build our asset portfolio in China but will do so in a disciplined manner that ensures we meet our profit goals.
| China | Location | Capacity (MW) | Project Type | Status | Expected NTP/Sale | Business Model | ||||||
| China DG | Jiangsu | 57.0 | Net Metering | Under Development | 2021/2022 | IPP Business | ||||||
| China DG | ZheJiang | 24.0 | Net Metering | Under Development | 2021/2022 | IPP Business | ||||||
| China DG | Shandong | 10.0 | Net Metering | Under Development | 2022 | IPP Business | ||||||
| China DG | Anhui | 7.0 | Net Metering | Under Development | 2022 | IPP Business | ||||||
| China DG | Other | 15.0 | Net Metering | Under Development | 2022 | IPP Business | ||||||
| Total | 113.0 |
Q3 2021 Financial Results: Sixth Consecutive Profitable Quarter
All figures refer to the third quarter of 2021, unless stated otherwise.
Revenue
Revenue was $15.5 million, down sequentially and up year-over-year. Revenue from Project Development was largely driven by the sale of solar projects in the USA and Poland. Energy sales came from the 49.4 million KWh generated by our rooftop DG projects in China and the U.S.
By their nature, project sales are large with unpredictable timing, and quarterly revenue will often fluctuate significantly. The Company measures its success in project development by 1) focusing on profit performance, and 2) achieving attractive rates of quality pipeline growth. Some revenues are delayed to 4Q 2021 and 2022.
| Q3’21 Revenue | % of Total | |||||
| Revenue by Region | (US$’000) | Revenue | ||||
| Europe | 6,248 | 40 | % | |||
| US | 4,226 | 27 | % | |||
| China | 5,066 | 33 | % | |||
| Total | 15,540 | 100 | % |
Gross Profit and Gross Margin
Gross profit was $6.1 million in the third quarter of 2021, yielding a gross margin of 39.2%. Gross margin was at the high end of guidance due to the mix of project sales at NTP, which are higher margin than COD sales. The lower gross margin versus the previous quarter and year-ago quarter was due to comparisons with exceptionally high gross margins in the prior periods.
Gross profit and margin compare to a gross profit of $11.3 million and gross margin of 61.0% in the second quarter of 2021, and a gross profit of $5.9 million and gross margin of 60.6% in the third quarter of 2020.
Operating Expense and Operating Income
Operating expenses were $3.4 million, down sequentially and up year-over-year. Sales and marketing expenses of $48,000 were down both sequentially and year-over-year. General and administrative expenses of $3.4 million were up both sequentially and year-over-year, as we built staff in anticipation of further growth. Other operating income was $76,000, reflecting the reversal of warranty cost related to a project in China that was sold.
Operating income was $2.7 million, compared to $7.3 million in Q2 2021 and $2.9 million in the third quarter of 2020. Non-GAAP operating income was $3.2 million, compared to non-GAAP operating income of $8.8 million in the second quarter of 2021 and $4.5 million in the third quarter of 2020.
Net Income
ReneSola Power achieved its sixth consecutive quarter of profitability.
Net income attributed to ReneSola Power common shareholders was $0.7 million, compared to $7.0 million in the second quarter of 2021 and $2.1 million in the third quarter of 2020. Net income per ADS was $0.01, compared to $0.10 in the second quarter of 2021 and $0.04 in the third quarter of 2020.
Non-GAAP net income attributed to ReneSola Power was $1.7 million, compared to $7.5 million in the second quarter of 2021 and $2.5 million in the third quarter of 2020. Non-GAAP net income per ADS was $0.02, compared to $0.11 in the second quarter of 2021 and $0.05 in the third quarter of 2020.
Cash Flow
Cash flow used in operating activities was $5.1 million; cash flow used in investing activities was $3.0 million, and cash flow used in financing activities was $2.2 million.
Financial Position
All figures are as of quarter-end, September 30, 2021.
Cash and equivalents were $275.8 million, compared to $286.0 million at the end of Q2 2021. Total current assets (as disclosed in appendix 2) were $351.2 million, compared to $357.1 million at quarter-end of Q2. Long-term borrowings were $65,000, flat when compared to June 30, 2021. Our long-term failed sale-lease back and finance lease liabilities associated with the financial leasing payables for rooftop projects in China were $31.7 million, compared to $36.0 million at the end of the previous quarter as we paid down some high interest borrowing in China. Short-term borrowings were nil.
We consider our debt-to-asset ratio to be attractive at 15.8%.
Cash per ADS is now $3.95. Book value (or NAV) equals $6.06 per ADS. This compares to our current ADS price of $5.59, as of the date of this letter.
Our Board of Directors recently authorized a $50 million share repurchase program. The program is effective immediately with no expiration date. The authorization reflects high confidence in our growth prospects and strong financial position.
Robust Outlook for Q4 2021 and 2022
For the fourth quarter of 2021, we expect revenue to be in the range of $21 to $27 million and gross margin in the range of 36% to 40%. This results in full year 2021 revenue guidance of $77 to $83 million, and full year gross margin over 40%.
Our preliminary goal for 2022 is to achieve the net profit growth of at least 30% compared to 2021. This outlook is based on the broad-based societal interest in clean energy that is driving increased government support and a high level of private developer interest. We will offer detailed guidance for 2022 pipeline growth, revenue, and bottom line results in our year-end shareholder letter.
Conclusion
We believe broad social and governmental support for renewable energy will create a robust environment supporting the growth of solar projects, which in turn should drive exciting growth for us in the quarters ahead. Our strategy is sound, and our track record of execution is strong. We have never been more excited about the future.
We would like to thank our employees for their hard work and dedication. We also want to thank our customers, partners and shareholders for their continued support and confidence in ReneSola Power.
| Sincerely, | |
| Yumin Liu | Ke Chen |
| Chief Executive Officer | Chief Financial Officer |
Third Quarter 2021 Earnings Results Conference Call
We will host a conference call today to discuss our third quarter 2021 business and financial results. The call is scheduled to begin at 4:30 p.m. U.S. Eastern Time on Tuesday, December 7, 2021 (5:30 a.m. China Standard Time on Wednesday, December 8, 2021).
Please register in advance to join the conference call using the link provided below and dial in 10 minutes before the call is scheduled to begin. Conference call access information will be provided upon registration.
Participant Online Registration: http://apac.directeventreg.com/registration/event/1598668
A replay of the conference call may be accessed by phone at the following numbers until December 13, 2021. To access the replay, please reference the conference passcode 1598668.
| 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 Power's website at http://ir.renesolapower.com.
Safe Harbor Statement
This shareholder letter 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:
ReneSola Power
Mr. Adam Krop
+1 (347) 577-9055 x115
IR.USA@renesolapower.com
The Blueshirt Group
Mr. Gary Dvorchak, CFA
gary@blueshirtgroup.com
Appendix 1: Unaudited Consolidated Income Statement
RENESOLA LTD
Unaudited Consolidated Statements of Operations
(US dollars in thousands, except ADS and share data)
| Three Months Ended | |||||||
| Sep 30, 2021 | Jun 30, 2021 | Sep 30, 2020 | |||||
| Net revenues | 15,540 | 18,531 | 9,749 | ||||
| Cost of revenues | (9,454 | ) | (7,235 | ) | (3,844 | ) | |
| Gross profit | 6,086 | 11,296 | 5,905 | ||||
| Operating (expenses)/income: | |||||||
| Sales and marketing | (48 | ) | (286 | ) | (76 | ) | |
| General and administrative | (3,399 | ) | (2,996 | ) | (1,890 | ) | |
| Other operating (expenses)/income | 76 | (721 | ) | (1,064 | ) | ||
| Total operating expenses | (3,371 | ) | (4,003 | ) | (3,030 | ) | |
| Income from operations | 2,715 | 7,293 | 2,875 | ||||
| Non-operating (expenses)/income: | |||||||
| Interest income | 278 | 603 | 165 | ||||
| Interest expense | (975 | ) | (1,009 | ) | (1,519 | ) | |
| Foreign exchange (losses)/gains | (694 | ) | 619 | 945 | |||
| Total non-operating (expenses)/income | (1,391 | ) | 213 | (409 | ) | ||
| Income before income tax | 1,324 | 7,506 | 2,466 | ||||
| Income tax (expense)/benefit | (197 | ) | 75 | (42 | ) | ||
| Income,net of tax | 1,127 | 7,581 | 2,424 | ||||
| Less: Net income attributed to non-controlling interests | 416 | 628 | 313 | ||||
| Net income attributed to ReneSola Ltd | 711 | 6,953 | 2,111 | ||||
| Income attributed to ReneSola Ltd per ADS | |||||||
| Basic | 0.01 | 0.10 | 0.04 | ||||
| Diluted | 0.01 | 0.10 | 0.04 | ||||
| Weighted average number of ADS used in computing income/(loss) per ADS* | |||||||
| Basic | 69,760,475 | 69,750,857 | 48,684,311 | ||||
| Diluted | 70,433,809 | 70,554,191 | 48,684,311 | ||||
*Each American depositary shares (ADS) represents 10 common shares
Appendix 2: Unaudited Consolidated Balance Sheet
RENESOLA LTD
Unaudited Consolidated Balance Sheets
(US dollars in thousands)
| Sep 30, | Jun 30, | Sep 30, | |||||
| 2021 | 2021 | 2020 | |||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | 275,388 | 286,016 | 15,570 | ||||
| Restricted cash | 456 | - | 824 | ||||
| Accounts receivable, net of allowances for doubtful accounts | 44,009 | 35,754 | 18,123 | ||||
| Advances to suppliers, net | 996 | 1,309 | 292 | ||||
| Value added tax recoverable | 4,289 | 3,883 | 6,575 | ||||
| Prepaid expenses and other current assets | 13,047 | 12,273 | 10,181 | ||||
| Project assets current | 13,044 | 17,900 | 20,960 | ||||
| Total current assets | 351,229 | 357,135 | 72,525 | ||||
| Property, plant and equipment, net | 121,763 | 120,189 | 139,653 | ||||
| Deferred tax assets, net | 768 | 766 | 843 | ||||
| Project assets non-current | 5,159 | 3,438 | 5,177 | ||||
| Goodwill | 1,023 | 1,023 | - | ||||
| Operating lease right-of-use assets | 20,494 | 21,821 | 22,390 | ||||
| Finance lease right-of-use assets | 25,037 | 25,266 | 24,826 | ||||
| Other non-current assets | 30,478 | 29,596 | 23,669 | ||||
| Total assets | 555,951 | 559,234 | 289,083 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Short-term borrowings | - | - | 31,292 | ||||
| Bond payable current | - | - | 5,198 | ||||
| Accounts payable | 4,740 | 4,058 | 9,804 | ||||
| Advances from customers | 82 | 1,057 | 82 | ||||
| Amounts due to related parties | 7,944 | 6,702 | 2,639 | ||||
| Other current liabilities | 9,927 | 9,468 | 14,785 | ||||
| Income tax payable | 544 | 542 | 757 | ||||
| Salary payable | 319 | 326 | 266 | ||||
| Operating lease liabilities current | 509 | 1,482 | 1,375 | ||||
| Failed sale-lease back and finance lease liabilities current | 12,299 | 12,824 | 7,047 | ||||
| Total current liabilities | 36,364 | 36,459 | 73,245 | ||||
| Long-term borrowings | 65 | 69 | 2,976 | ||||
| Operating lease liabilities non-current | 19,493 | 19,706 | 20,444 | ||||
| Failed sale-lease back and finance lease liabilities non-current | 31,669 | 35,994 | 45,171 | ||||
| Total liabilities | 87,591 | 92,228 | 141,836 | ||||
| Shareholders' equity | |||||||
| Common shares | 847,426 | 848,524 | 536,961 | ||||
| Additional paid-in capital | 10,688 | 8,197 | 9,976 | ||||
| Accumulated deficit | (431,127 | ) | (431,839 | ) | (441,544 | ) | |
| Accumulated other comprehensive loss | (4,066 | ) | (2,885 | ) | (2,044 | ) | |
| Total equity attributed to ReneSola Ltd | 422,921 | 421,997 | 103,349 | ||||
| Noncontrolling interest | 45,439 | 45,009 | 43,898 | ||||
| Total shareholders' equity | 468,360 | 467,006 | 147,247 | ||||
| Total liabilities and shareholders' equity | 555,951 | 559,234 | 289,083 |
Appendix 3: Unaudited Consolidated Cash Flow Statement
RENESOLA LTD
Unaudited Consolidated Statements of Cash Flow
(US dollars in thousands)
| Three Months Ended | ||||||||||||
| Sep 30,2021 | Jun 30,2021 | Sep 30,2020 | ||||||||||
| Net cash provided by (used in) operating activities | (5,055 | ) | 602 | (1,946 | ) | |||||||
| Net cash used in investing activities | (2,975 | ) | (753 | ) | (1,006 | ) | ||||||
| Net cash provided by (used in) financing activities | (2,210 | ) | (14,288 | ) | 8,331 | |||||||
| Effect of exchange rate changes | 68 | (536 | ) | (1,050 | ) | |||||||
| Net increase (decrease) in cash and cash equivalents and restricted cash | (10,172 | ) | (14,975 | ) | 4,329 | |||||||
| Cash and cash equivalents and restricted cash, beginning of the period | 286,016 | 300,991 | 12,065 | |||||||||
| Cash and cash equivalents and restricted cash, end of the period | 275,844 | 286,016 | 16,394 | |||||||||
Appendix 4
Use of Non-GAAP Financial Measures
To supplement ReneSola Power’s financial statements presented on a GAAP basis, ReneSola Power provides non-GAAP financial data as supplemental measures of its performance.
To provide investors with additional insight and allow for a more comprehensive understanding of the information used by management in its financial and decision-making surrounding pro-forma operations, we supplement our consolidated financial statements presented on a basis consistent with U.S. generally accepted accounting principles, or GAAP, with EBITDA, Adjusted EBITDA, non-GAAP net income/ (loss) attributed to ReneSola Power and non-GAAP EPS as non-GAAP financial measures of earnings.
| • | EBITDA represents net income before income tax expense (benefit), interest expense, depreciation and amortization. |
| • | Adjusted EBITDA represents EBITDA plus discount of electricity subsidy in China, plus share-based compensation, plus bad debt provision, plus impairment of long-lived assets, plus loss/(gain) on disposal of assets, plus foreign exchange loss/(gain). |
| • | Non-GAAP net income/ (loss) attributed to ReneSola Power represents GAAP net income/(loss) attributed to ReneSola Power plus discount of electricity subsidy in China, plus share-based compensation, plus bad debt provision, plus impairment of long-lived assets, plus loss/(gain) on disposal of assets, plus foreign exchange loss/(gain). |
| • | Non-GAAP EPS represents Non-GAAP net income/ (loss) attributed to ReneSola Power divided by the number of fully diluted shares outstanding. |
Our management uses EBITDA, Adjusted EBITDA, non-GAAP net income/ (loss) attributed to ReneSola Power and non-GAAP EPS as financial measures to evaluate the profitability and efficiency of our business model. We use these non-GAAP financial measures to access the strength of the underlying operations of our business. These adjustments, and the non-GAAP financial measures that are derived from them, provide supplemental information to analyze our operations between periods and over time.
We find these measures especially useful when reviewing pro-forma results of operations, which include large non-cash impairment of long-lived assets and loss on disposal of assets. Investors should consider our non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP.
RENESOLA LTD
GAAP to Non-GAAP Reconciliation
(US dollars in thousands, except ADS and share data)
| Three months ended | ||||||||||||
| Sep 30, 2021 | Jun 30, 2021 | Sep 30, 2020 | ||||||||||
| Reconciliation of Revenue | ||||||||||||
| GAAP Net revenue | $ | 15,540 | $ | 18,531 | $ | 9,749 | ||||||
| Add: Discount of electricity subsidy in China | 32 | 353 | 425 | |||||||||
| Non-GAAP Net revenue | $ | 15,572 | $ | 18,884 | $ | 10,174 | ||||||
| GAAP Gross Margin | ||||||||||||
| US. GAAP as reported | $ | 6,086 | $ | 11,296 | $ | 5,905 | ||||||
| Add: Discount of electricity subsidy in China | 32 | 353 | 425 | |||||||||
| Non-GAAP Gross Margin | $ | 6,118 | $ | 11,649 | $ | 6,330 | ||||||
| Reconciliation of operating expenses | ||||||||||||
| GAAP operating expenses | $ | (3,371 | ) | $ | (4,003 | ) | $ | (3,030 | ) | |||
| Add: Share based compensation | 404 | 335 | 85 | |||||||||
| Add: Bad debt provision of receivables | - | - | 362 | |||||||||
| Add: Cancellation of project assets | - | 839 | - | |||||||||
| Add: Loss on disposal of project assets | - | - | 755 | |||||||||
| Add: Loss on disposal of property, plant and equipment | - | - | 234 | |||||||||
| Less: Gains on disposal of property, plant and equipment | - | (66 | ) | (246 | ) | |||||||
| Non-GAAP operating expenses | $ | (2,967 | ) | $ | (2,895 | ) | $ | (1,840 | ) | |||
| Reconciliation of Operating Income | ||||||||||||
| GAAP Operating Income | $ | 2,715 | $ | 7,293 | $ | 2,875 | ||||||
| Add: Discount of electricity subsidy in China | 32 | 353 | 425 | |||||||||
| Add: Share based compensation | 404 | 335 | 85 | |||||||||
| Add: Bad debt provision of receivables | - | - | 362 | |||||||||
| Add: Cancellation of project assets | - | 839 | - | |||||||||
| Add: Loss on disposal of project assets | - | - | 755 | |||||||||
| Add: Loss on disposal of property, plant and equipment | - | - | 234 | |||||||||
| Less: Gains on disposal of property, plant and equipment | - | (66 | ) | (246 | ) | |||||||
| Non-GAAP Operating Income | $ | 3,151 | $ | 8,754 | $ | 4,490 | ||||||
| Reconciliation of Net income attributed to ReneSola Ltd | ||||||||||||
| GAAP Net income attributed to ReneSola Ltd | $ | 711 | $ | 6,953 | $ | 2,111 | ||||||
| Add: Discount of electricity subsidy in China | 19 | 211 | 254 | |||||||||
| Add: Share based compensation | 404 | 335 | 85 | |||||||||
| Add: Bad debt provision of receivables | - | - | 362 | |||||||||
| Add: Cancellation of project assets | - | 839 | - | |||||||||
| Add: Loss on disposal of project assets | - | - | 755 | |||||||||
| Add: Loss on disposal of property, plant and equipment | - | - | 140 | |||||||||
| Less: Gains on disposal of property, plant and equipment | - | (40 | ) | (147 | ) | |||||||
| Less: Interest income of discounted electricity subsidy in China | (138 | ) | (178 | ) | (86 | ) | ||||||
| Add: Foreign exchange loss/(gain) | 694 | (619 | ) | (945 | ) | |||||||
| Non-GAAP Net income attributed to ReneSola Ltd | $ | 1,690 | $ | 7,502 | $ | 2,529 | ||||||
Appendix 5: Adjusted EBITDA
RENESOLA LTD
Adjusted EBITDA
(US dollars in thousands, except ADS and share data)
| Three months ended | ||||||||
| Sep 30, 2021 | Jun 30, 2021 | Sep 30, 2020 | ||||||
| Net Income | 1,127 | 7,581 | 2,424 | |||||
| Income tax expenses | 197 | (75 | ) | 42 | ||||
| Interest expenses, net off interest income | 697 | 406 | 1,354 | |||||
| Depreciation & Amortization | 1,596 | 1,559 | 1,907 | |||||
| EBITDA | 3,617 | 9,471 | 5,727 | |||||
| Discount of electricity subsidy in china | 32 | 353 | 425 | |||||
| Share based compensation | 404 | 335 | 85 | |||||
| Bad debt provision of receivables | - | - | 362 | |||||
| Cancellation of project assets | - | 839 | - | |||||
| Loss on disposal of project assets | - | - | 755 | |||||
| Loss on disposal of property, plant and equipment | - | - | 234 | |||||
| Gains on disposal of property, plant and equipment | - | (66 | ) | (246 | ) | |||
| Interest income of discounted electricity subsidy in china | (231 | ) | (298 | ) | (144 | ) | ||
| Foreign exchange loss/(gain) | 694 | (619 | ) | (945 | ) | |||
| Adjusted EBITDA | 4,516 | 10,015 | 6,253 | |||||