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 2022 September
Commission File Number: 001-33911
RENESOLA LTD
100 First Stamford Place, Suite 302,
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 þ 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: September 13, 2022
Exhibit Index
| Exhibit No. | Description | |
| Exhibit 99.1 | Press Release | |
| Exhibit 99.2 | 2022 Second Quarter Financial Results |
Exhibit 99.1
ReneSola Power Announces Second Quarter 2022 Financial Results
Stamford, CT, September 7, 2022 – 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 second quarter ended June 30, 2022. ReneSola Power's second quarter 2022 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.
Conference Call Details
We will host a conference call today to discuss our second quarter 2022 business and financial results. The call is scheduled to begin at 5:00 p.m. U.S. Eastern Time on Wednesday, September 7, 2022 (5:00 a.m. China Standard Time on Thursday, September 8, 2022).
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:
https://register.vevent.com/register/BId0ee75eccaf2437a8ea3edc802522a73
Webcast:
https://edge.media-server.com/mmc/p/3i4aejba
Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of ReneSola Power's website at https://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 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 more information, please visit www.renesolapower.com.
For investor and media inquiries, please contact:
In the United States:
ReneSola Ltd
Mr. Adam Krop
+1 (347) 577-9055 x115
IR.USA@renesolapower.com
IR@renesolapower.com
The Blueshirt Group
Mr. Yujia Zhai
+1 (860) 214-0809
yujia@blueshirtgroup.com
Exhibit 99.2
September 7, 2022
Fellow Shareholders,
Our Q2 results were below our guidance range due to delays in project sales in the U.S. Q2 revenue was $8.2 million, driven primarily by our IPP assets in China and NTP project sales in the U.S. Gross margin for the quarter was 45% and EBITDA was $2.4 million.
Looking forward, we are extremely optimistic about our growth opportunities as the solar industry is benefiting from strong tailwinds such as rising Power Purchase Agreement (PPA) prices and favorable regulatory conditions in our two largest markets, Europe, and the United States.
In Europe, Russia’s conflict with Ukraine and record heat and drought continues to cause major energy supply disruptions. As a result, energy supply is failing to keep up with demand and is sending wholesale electricity prices to record highs across Europe. As an example, in June, Poland’s average wholesale price of electricity increased over 300% to ~885 PLN/MWh ($198/MWh) from ~218 PLN/MWh ($55/MWh) in June 2020 before the Russia-Ukraine conflict began.
As a result, in Q2, we saw Poland solar PPA prices increase by 36% to €95.0 per MWh on high demand for renewable energy PPAs in a tight supply environment. In Q2, for Europe as a whole, Solar PPA prices increased by 19% from the previous quarter and 47% year-over-year. Even with these price increases, solar PPAs continue to remain attractive relative to the significantly higher wholesale electricity prices.
Left: European Solar PPA prices: Q2’20 – Q2’22
Right: Poland wholesale electricity prices in PLN/MWh: January, 2018 to June, 2022
 |
 |
Source: LevelTen Energy
In the U.S., solar PPA prices increased by over 8% from the previous quarter for all Independent System Operators (ISOs) as demand for solar PPAs continue to grow faster than supply. These higher PPA prices have driven up the revenue and margin opportunity of our pre-NTP and NTP project pipeline across Europe and North America.
Further, in the U.S., the solar industry welcomed the passage of the Inflation Reduction Act in mid-August, 2022. This law earmarks $369 billion for U.S. energy security and fighting climate change, which makes it the biggest investment in clean energy ever made in U.S. history. The law includes many tax incentives for solar and storage deployments (including independent storage facilities), investments in domestic solar manufacturing and other critical energy provisions. As an example, the law extended the 1.5 cents kWh Production Tax Credit for electricity produced with renewable energy and the 30% Investment Tax Credit for 10 years, which significantly improves the value and ROI on solar projects. For households, the incentives help make things like rooftop solar panels, electric vehicles and energy-efficient appliances more affordable, in a bid to more quickly transition the U.S. toward cleaner sources of energy. The Solar Energy Industries Association (SEIA) believes this law will create a stable policy environment for solar energy development and will set the foundation to drive the solar industry towards its goal of 30% of U.S. electricity generation by 2030 from 4% today.
To conclude, the future looks bright for solar energy. We believe we are well-positioned to capitalize on the accelerating solar adoption across Europe and North America. Given our deep expertise in developing and operating solar projects, our extensive network of industry partnerships throughout Europe, our well-capitalized balance sheet, and our unmatched track record in closing financing transactions and profitably monetizing projects, we are increasingly optimistic about our goal of becoming a leading global solar developer. While we are extremely optimistic about the long-term, we are also aware that the current energy crisis and inflation in Europe is causing significant instability in the region and increasing risks of a recession. We remain cautious and extremely focused over the near term as the situation in Europe evolves.
With that overview, we will now review the details of our first quarter operating and financial performance.
Q2 2022 Financial Highlights:
| ● | Revenue increased 134% sequentially to $8.2 million from $3.5 million in Q1’22 |
| ● | GAAP gross margin was 45.0%, higher than our guidance range primarily due to high-margin IPP sales in China |
| ● | GAAP EBITDA was $2.4 million compared to zero in Q1’22 |
| ● | GAAP net loss was $0.2 million, lower than $1.7 million net loss in Q1’22 |
| ● | Non-GAAP net loss was $0.4 million, lower than $1.0 million Non-GAAP net loss in Q1’22 |
| (in $ millions) | Q2’22 | Q1’22 | Q/Q Change | |||||||||
| GAAP revenue | $ | 8.2 | $ | 3.5 | +134 | % | ||||||
| GAAP gross profit | $ | 3.7 | $ | 1.1 | +223 | % | ||||||
| GAAP operating income (loss) | $ | (0.2 | ) | $ | (2.2 | ) | -90 | % | ||||
| Non-GAAP operating income (loss) | $ | 0.8 | $ | (1.4 | ) | +161 | % | |||||
| GAAP EBITDA | $ | 2.4 | $ | (0.0 | ) | +4,984 | % | |||||
| Adjusted EBITDA | $ | 2.3 | $ | 0.6 | +286 | % | ||||||
| GAAP net income (loss) attributed to ReneSola Power | $ | (0.2 | ) | $ | (1.7 | ) | -88 | % | ||||
| Non-GAAP net income (loss) attributed to ReneSola Power | $ | (0.4 | ) | $ | (1.0 | ) | -65 | % | ||||
Revenue by segment:
| Segment ($ in thousands) | Q2’22 Revenue | % of Total Revenue | ||||||
| Project Development | $ | 2,092 | 25 | % | ||||
| IPP | $ | 5,897 | 72 | % | ||||
| Others | $ | 217 | 3 | % | ||||
| Total | $ | 8,206 | 100 | % | ||||
“IPP” consists of sale of electricity in China and the U.S.
“Other” refers to operations and maintenance.
Revenue by region:
| Region ($ in thousands) | Q2’22 Revenue | % of Total Revenue | ||||||
| North America | $ | 2,263 | 28 | % | ||||
| Europe | $ | 354 | 4 | % | ||||
| China | $ | 5,589 | 68 | % | ||||
| Total | $ | 8,206 | 100 | % | ||||
Mid-to-Late Stage Pipeline Growth Goal
In 2022, we expect to close the year at 3 GWs with a significant portion of the growth coming from Europe due to favorable policy support and increasing energy demand. We target growth of the Company’s mid-to-late stage pipeline to 5 GWs by the end of 2024 with a significant portion of the growth coming from Europe.
The following table details our mid-to-late stage project pipeline by location:
| Project Location | Mid-to-late stage (MW) | |||
| U.S. | 653 | |||
| Poland | 705 | |||
| Spain | 304 | |||
| U.K. | 235 | |||
| France | 117 | |||
| Hungary | 102 | |||
| Italy | 92 | |||
| Germany | 40 | |||
| China | 156 | |||
| Total | 2,404 | |||
In addition to the solar PV project portfolio, we also have a storage pipeline of over 1 GWh in the U.S. and Europe at different development stages.
Detailed Review of Pipeline by Region
United States
Our mid-to-late stage U.S. projects pipeline now totals 653 MW, up from last quarter. Of our total 653 MW pipeline, 146 MW are community solar projects in Minnesota, Maine, and New York. Additionally, we have projects under development in Alabama, California, Illinois, and Pennsylvania. Meanwhile, we operate 24 MW of utility projects in North Carolina.
| U.S.A. | Capacity (MW) | Project Type | Status | Expected NTP/Sale | Business Model | |||||
| Minnesota | 6 | Community | Under Development | 2022 | NTP Sale | |||||
| New York | 130 | Community + Utility | Under Development | 2022 | NTP Sale | |||||
| Florida | 100 | Utility | Under Development | 2022/2023 | NTP Sale | |||||
| Maine | 10 | DG & Community | Under Development | 2022 | NTP Sale | |||||
| Pennsylvania | 70 | Utility + Storage | Under Development | 2022 | NTP Sale | |||||
| Illinois | 50 | Utility + Storage | Under Development | 2023/2024 | NTP Sale | |||||
| Virginia | 7 | Community | Under Development | 2023/2024 | NTP Sale | |||||
| California | 280 | Utility + Storage | Under Development | 2024/2025 | NTP Sale | |||||
| Total | 653 |
Poland
In Poland, we have ~705 MW of ground-mounted projects in our mid-to-late stage pipeline.
| Poland | Project | Capacity (MW) | Project Type | Status | Expected RTB/Sale | Business Model | ||||||
| Auction 2020 and 2021 | Solar farms | 75 | Ground-mounted | Under Construction | 2022 + 2023 COD | RTB Sale + EPC | ||||||
| Current Pipeline | Including smaller scale projects | ~545 | Ground-mounted | Under Development | 2023/2024 RTB | RTB Sale | ||||||
| Close to RTB | 58 | Ground mounted | Under Development | 2022 RTB | RTB Sale + EPC | |||||||
| Close to RTB | 27 | Ground mounted | Under Development | 2022/2023 RTB | IPP | |||||||
| Total | ~705 |
Spain
We have a mid-to-late stage pipeline of 304 MW of ground-mounted projects located in various regions across Spain.
| Spain | Capacity (MW) | Project Type | Status | Expected RTB/Sale | Business Model | |||||
| Castillo (three projects) | 24 | Ground-mounted | Under Development | 2022/2023 | RTB Sale | |||||
| Project Portfolio | 280 | Ground-mounted | Under Development | 2023/2024 | RTB Sale | |||||
| Total | 304 |
U.K.
In the U.K., we have a mid-to-late stage pipeline of 235 MW of ground-mounted projects under development.
| U.K. | Capacity (MW) | Project Type | Status | Expected RTB/Sale | Business Model | |||||
| Novergy Portfolio | 185 | Solar only Ground-mounted | Under Development | 2022/2023 | RTB Sale | |||||
| Others | 50 | Solar-plus-storage Ground-mounted | Under Development | 2023/2024 | RTB Sale | |||||
| Total | 235 |
Germany
In Germany, we have 40 MW of ground-mounted projects in our mid-to-late stage pipeline under development.
| Germany | Capacity (MW) | Project Type | Status | Expected RTB/Sale | Business Model | |||||
| Project - Kentzlin | 12 | Ground-mounted | Under Development | 2022 | RTB Sale | |||||
| Project Portfolios | 28 | Ground-mounted | Under Development | 2023 | RTB Sale | |||||
| Total | 40 |
France
In France, we have a project pipeline of 117 MW, all of which are ground-mounted projects.
| France | Capacity (MW) | Project Type | Status | Expected RTB/Sale | Business Model | |||||
| Project Portfolios | 99 | Ground mounted | Under Development | 2022/2023 | RTB Sale | |||||
| Project Portfolios | 18 | Ground mounted | Under Development | 2022 | Development Services | |||||
| Total | 117 |
Hungary
In Hungary, we invest in small-scale DG projects. Our late-stage pipeline has a total capacity of 102 MW.
| Hungary | Capacity (MW) | Project Type | Status | Expected RTB/Sale | Business Model | |||||
| Portfolio with FIT | 54 | Ground- mounted | Ready-to-Build/ Under development | 2022/2023 | IPP | |||||
| Portfolio for Corporate PPAs | 48 | Ground- mounted | Under Development | 2022/2023 | Build-Transfer | |||||
| Total | 102 |
Italy
In Italy, we partnered with two local developers and started to build our pipeline in this important market.
| Italy | Capacity (MW) | Project Type | Status | Expected RTB/Sale | Business Model | |||||
| Opal 1 - Lancia | 7 | Ground- mounted | Under Development | 2023/2024 | RTB Sale | |||||
| OpalB - CIRO | 8 | Ground- mounted | Under Development | 2023/2024 | RTB Sale | |||||
| Project Portfolio | 72 | Ground- mounted | Under Development | 2023/2024 | RTB Sale | |||||
| Caggegi | 5 | Ground- mounted | Under Development | 2023/2024 | RTB Sale | |||||
| Total | 92 |
Solid Operating Asset Portfolio with Attractive Long-term Growth Plan
We currently own 186 MW of operating projects, of which we operate ~162 MW of rooftop projects in China, and ~24 MW in the U.S. In Q2 2022, we connected about 3 MW of newly developed projects in Zhejiang, Jiangsu, Fujian, and Guangdong provinces in China. In the first half, our ability to add new IPP projects in China was significantly impacted by the Covid lockdowns that remains ongoing. 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 | 162 | |||
| - Zhejiang | 45 | |||
| - Henan | 46 | |||
| - Anhui | 31 | |||
| - Hebei | 17 | |||
| - Jiangsu | 14 | |||
| - Shandong | 3 | |||
| - Fujian | 6 | |||
| - Liaoning | 0.2 | |||
| - Guangdong | 0.2 | |||
| United States | 24 | |||
| Total | 186 | |||
Our new asset development pipeline in China is now estimated to be 156 MW, more than doubled from our prior estimate of 74 MW.
| China | Location | Capacity (MW) | Project Type | Status | Expected COD | Business Model | ||||||
| China DG | Jiangsu | 39 | Net Metering | Under Development | 2022/23 | IPP Business | ||||||
| China DG | Zhejiang | 29 | Net Metering | Under Development | 2022/23 | IPP Business | ||||||
| China DG | Shandong | 43 | Net Metering | Under Development | 2022/23 | IPP Business | ||||||
| China DG | Anhui | 13 | Net Metering | Under Development | 2022/23 | IPP Business | ||||||
| China DG | Others | 32 | Net Metering | Under Development | 2022/23 | IPP Business | ||||||
| Total | 156 |
In addition, as part of our long-term growth plan, we are also building IPP projects and looking for M&A opportunities across Europe to take advantage of the higher solar PPA prices and the favorable regulatory environment. We are targeting to have approximately 100 MWs in Europe by mid-2023.
Q2 2022 Financial Results:
All figures refer to the second quarter of 2022, unless stated otherwise.
Revenue
Revenue was $8.2 million, up 134% sequentially and down 56% year-over-year. Revenue for the quarter was primarily driven by our China IPP assets as well as the sale of three NTP projects in the U.S.
Gross Profit and Gross Margin
GAAP gross profit was $3.7 million and represented 45% of revenue. This was up from $1.1 million in Q1 2022 down from $11.3 million in Q2 2021. Non-GAAP gross profit was $4.1 million and represented 48% of revenue. Gross margin was above our guidance range for the full year as revenue mostly was attributed to higher margin IPP assets.
Operating Expense
GAAP operating expenses were $3.9 million, slightly higher than $3.4 million in Q1 2022 but lower than $4.0 million from Q2 2021. Non-GAAP operating expenses were $3.3 million, compared to $2.7 million in Q1 2022 and $2.9 million in Q2 2021. The sequential increase was primarily the result of an ERP system implementation and one-time financing related costs for our Europe market.
Net Income (loss)
GAAP net loss attributed to ReneSola Power common shareholders was $0.2 million compared to $1.7 million net loss in Q1 2022 and $7.0 million net income in Q2 2021. Net loss per ADS was $0.00, compared to net loss per ADS of $0.03 in Q1 2022 and net income per ADS of $0.10 in Q2 2021.
Non-GAAP net loss attributed to ReneSola Power was $0.4 million, compared to a non-GAAP net loss of $1.0 million in Q1 2022 and a non-GAAP net income of $7.5 million in Q2 2021. Non-GAAP net loss per ADS was $0.01, compared to Non-GAAP net loss per ADS of $0.02 in Q1 2022 and Non-GAAP net income per ADS of $0.11 in Q2 2021.
Cash Flow
Cash used in operating activities was $7.9 million; cash used in investing activities was $2.0 million, and cash used in financing activities was $4.9 million.
Financial Position
All figures are as of quarter-end, June 30, 2022.
Cash and cash equivalents at the end of Q2 2022 were $207.9 million compared to $222.9 million at the end of Q1 2022.
Total current assets were $285.7 million compared to $308.4 million at the end of Q1 2022. Our debt-to-asset ratio decreased to 8.3% compared to 9.6% in Q1 2022.
As of the date of this letter, we still have $30 million authorized in our share repurchase program.
Outlook for 2022
For the 2nd half of 2022, we anticipate project sales will accelerate throughout the remainder of the year.
We are reiterating our expectation for full year revenue to be in the range of $100 to $120 million. For full year gross margin, we continue to expect it will be 20 to 25%. For full year net profit, we continue to target $9 to $10 million, which is in line with our prior guidance of at least 30% growth.
For Q3, we expect revenue will be between $22 million to $25 million and our Q3 gross margin to be between 20% to 24%.
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 your continued support and confidence in ReneSola Power.
Sincerely,
| Yumin Liu | Ke Chen | |
| Chief Executive Officer | Chief Financial Officer |
Second Quarter 2022 Earnings Results Conference Call
We will host a conference call today to discuss our second quarter 2022 business and financial results. The call is scheduled to begin at 5:00 p.m. U.S. Eastern Time on Wednesday, September 7, 2022.
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:
https://register.vevent.com/register/BId0ee75eccaf2437a8ea3edc802522a73
Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of ReneSola Power's website at https://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
IR@renesolapower.com
The Blueshirt Group
Mr. Yujia Zhai, CPA
+1 (860) 214-0809
Yujia@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 | Six Months Ended | |||||||||||||||||||
| Jun 30, 2022 | Mar 31, 2022 | Jun 30, 2021 | Jun 30, 2022 | Jun 30, 2021 | ||||||||||||||||
| Net revenues | 8,206 | 3,514 | 18,531 | 11,720 | 41,306 | |||||||||||||||
| Cost of revenues | (4,517 | ) | (2,373 | ) | (7,235 | ) | (6,890 | ) | (23,210 | ) | ||||||||||
| Gross profit | 3,689 | 1,141 | 11,296 | 4,830 | 18,096 | |||||||||||||||
| Operating (expenses)/income: | ||||||||||||||||||||
| Sales and marketing | - | (3 | ) | (286 | ) | (3 | ) | (411 | ) | |||||||||||
| General and administrative | (3,875 | ) | (3,107 | ) | (2,996 | ) | (6,982 | ) | (5,745 | ) | ||||||||||
| Other operating expenses | (36 | ) | (250 | ) | (721 | ) | (286 | ) | (563 | ) | ||||||||||
| Impairment of long-lived assets | - | - | - | - | - | |||||||||||||||
| Total operating expenses | (3,911 | ) | (3,360 | ) | (4,003 | ) | (7,271 | ) | (6,719 | ) | ||||||||||
| Income(loss) from operations | (222 | ) | (2,219 | ) | 7,293 | (2,441 | ) | 11,377 | ||||||||||||
| Non-operating (expenses)/income: | ||||||||||||||||||||
| Interest income | 473 | 357 | 603 | 830 | 1,123 | |||||||||||||||
| Interest expense | (814 | ) | (708 | ) | (1,009 | ) | (1,522 | ) | (2,510 | ) | ||||||||||
| Investment income for subsidiaries | 76 | 714 | - | 790 | ||||||||||||||||
| Foreign exchange (losses)/gains | 872 | (85 | ) | 619 | 787 | (1,259 | ) | |||||||||||||
| Total non-operating (expenses)/income | 607 | 278 | 213 | 885 | (2,646 | ) | ||||||||||||||
| Income(loss) before income tax | 385 | (1,941 | ) | 7,506 | (1,556 | ) | 8,731 | |||||||||||||
| Income tax (expense)/benefit | (349 | ) | (107 | ) | 75 | (456 | ) | (326 | ) | |||||||||||
| Income(loss),net of tax | 36 | (2,048 | ) | 7,581 | (2,012 | ) | 8,405 | |||||||||||||
| Less: Net income attributed to non-controlling interests | 240 | (363 | ) | 628 | (123 | ) | 678 | |||||||||||||
| Net income(loss) attributed to ReneSola Ltd | (204 | ) | (1,685 | ) | 6,953 | (1,889 | ) | 7,727 | ||||||||||||
| Income attributed to ReneSola Ltd per ADS | ||||||||||||||||||||
| Basic | (0.00 | ) | (0.03 | ) | 0.10 | (0.03 | ) | 0.11 | ||||||||||||
| Diluted | (0.00 | ) | (0.03 | ) | 0.10 | (0.03 | ) | 0.11 | ||||||||||||
| Weighted average number of ADS used in computing income/(loss) per ADS* | ||||||||||||||||||||
| Basic | 66,956,781 | 66,918,272 | 69,750,857 | 66,956,781 | 69,750,857 | |||||||||||||||
| Diluted | 67,562,988 | 66,918,272 | 70,554,191 | 67,562,988 | 70,554,191 | |||||||||||||||
*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) | |||
| Unaudited Consolidated Balance Sheets | Jun 30, | Mar 31, | Jun 30, | |||||||||
| (US dollars in thousands) | 2022 | 2022 | 2021 | |||||||||
| ASSETS | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | 207,877 | 222,889 | 286,016 | |||||||||
| Restricted cash | 157 | 20 | - | |||||||||
| Accounts receivable trade, net | 27,332 | 29,496 | 35,754 | |||||||||
| Accounts receivable unbilled | 8,744 | 11,455 | - | |||||||||
| Advances to suppliers | 2,398 | 1,044 | 1,309 | |||||||||
| Value added tax receivable | 3,329 | 5,731 | 3,883 | |||||||||
| Prepaid expenses and other current assets, net | 19,366 | 17,408 | 12,273 | |||||||||
| Project assets current | 16,457 | 20,327 | 17,900 | |||||||||
| Assets hold for sales | - | - | - | |||||||||
| Total current assets | 285,660 | 308,370 | 357,135 | |||||||||
| Property, plant and equipment, net | 121,199 | 125,767 | 120,189 | |||||||||
| Deferred tax assets, net | 739 | 780 | 766 | |||||||||
| Project assets non-current | 15,940 | 7,739 | 3,438 | |||||||||
| Goodwill | 1,023 | 1,023 | 1,023 | |||||||||
| Long-term invetements in U.S. Treasury Bills | 10,043 | 9,985 | - | |||||||||
| Operating lease right-of-use assets | 16,484 | 16,129 | 21,821 | |||||||||
| Finance lease right-of-use assets | 22,920 | 24,442 | 25,266 | |||||||||
| Other non-current assets | 26,246 | 25,665 | 29,596 | |||||||||
| Total assets | 500,254 | 519,900 | 559,234 | |||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
| Current liabilities: | ||||||||||||
| Short-term borrowings | - | - | - | |||||||||
| Bond payable current | - | - | - | |||||||||
| Accounts payable | 2,720 | 4,173 | 4,058 | |||||||||
| Advances from customers | 202 | 2 | 1,057 | |||||||||
| Amounts due to related parties | 9,666 | 9,469 | 6,702 | |||||||||
| Other current liabilities | 6,562 | 6,785 | 9,468 | |||||||||
| Income tax payable | 489 | 416 | 542 | |||||||||
| Salaries payable | 601 | 434 | 326 | |||||||||
| Liabilities held for sale | - | - | - | |||||||||
| Operating lease liabilities current | 205 | 338 | 1,482 | |||||||||
| Failed sale-lease back and finance lease liabilities current | 10,692 | 12,202 | 12,824 | |||||||||
| Total current liabilities | 31,137 | 33,819 | 36,459 | |||||||||
| Bond payable, non-current portion | - | - | - | |||||||||
| Long-term borrowings | 49 | 56 | 69 | |||||||||
| Operating lease liabilities non-current | 15,428 | 15,522 | 19,706 | |||||||||
| Failed sale-lease back and finance lease liabilities non-current | 21,147 | 26,849 | 35,994 | |||||||||
| Other long-term liabilities | - | - | - | |||||||||
| Total liabilities | 67,761 | 76,246 | 92,228 | |||||||||
| Shareholders' equity | ||||||||||||
| Common shares | 847,745 | 847,379 | 848,524 | |||||||||
| Additional paid-in capital | 13,593 | 13,046 | 8,197 | |||||||||
| Treasury stock | -20,000 | -20,000 | - | |||||||||
| Accumulated deficit | (434,595 | ) | (434,390 | ) | (431,839 | ) | ||||||
| Accumulated other comprehensive loss | (16,558 | ) | (6,541 | ) | (2,885 | ) | ||||||
| Total equity attributed to ReneSola Ltd | 390,185 | 399,494 | 421,997 | |||||||||
| Noncontrolling interest | 42,308 | 44,160 | 45,009 | |||||||||
| Total shareholders' equity | 432,493 | 443,654 | 467,006 | |||||||||
| Total liabilities and shareholders' equity | 500,254 | 519,900 | 559,234 | |||||||||
Appendix 3: Unaudited Consolidated Cash Flow Statement
| RENESOLA LTD | |||
| Unaudited Consolidated Statements of Cash Flow | |||
| (US dollars in thousands) | |||
| Three Months Ended | ||||||||||||
| Jun 30, 2022 | Mar 31, 2022 | Jun 30, 2021 | ||||||||||
| Net cash provided by (used in) operating activities | (7,862 | ) | (14,362 | ) | 602 | |||||||
| Net cash used in investing activities | (1,973 | ) | (3,700 | ) | (753 | ) | ||||||
| Net cash provided by (used in) financing activities | (4,935 | ) | (14,244 | ) | (14,288 | ) | ||||||
| Effect of exchange rate changes | (107 | ) | 831 | (536 | ) | |||||||
| Net increase in cash and cash equivalents and restricted cash | (14,877 | ) | (31,475 | ) | (14,975 | ) | ||||||
| Cash and cash equivalents and restricted cash, beginning of the period | 222,908 | 254,383 | 300,991 | |||||||||
| Cash and cash equivalents and restricted cash, end of the period | 208,031 | 222,908 | 286,016 | |||||||||
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.
Appendix 5
GAAP to Non-GAAP Unaudited Reconciliation
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| (in thousands) | Jun 30, 2022 | Mar 31, 2022 | Jun 30, 2021 | Jun 30, 2022 | Jun 30, 2021 | |||||||||||||||
| Reconciliation of Revenue | ||||||||||||||||||||
| GAAP Net revenue | $ | 8,206 | $ | 3,514 | $ | 18,531 | $ | 11,720 | $ | 41,306 | ||||||||||
| Add: Discount of electricity subsidy in China | 406 | 209 | 353 | 615 | 385 | |||||||||||||||
| Non-GAAP Net revenue | $ | 8,612 | $ | 3,723 | $ | 18,884 | $ | 12,335 | $ | 41,691 | ||||||||||
| GAAP Gross Margin | ||||||||||||||||||||
| US. GAAP as reported | $ | 3,689 | $ | 1,141 | $ | 11,296 | $ | 4,830 | $ | 18,096 | ||||||||||
| Add: Discount of electricity subsidy in China | 406 | 209 | 353 | 615 | 385 | |||||||||||||||
| Non-GAAP Gross Margin | $ | 4,095 | $ | 1,350 | $ | 11,649 | $ | 5,445 | $ | 18,481 | ||||||||||
| Reconciliation of operating expenses | ||||||||||||||||||||
| GAAP operating expenses | $ | (3,911 | ) | $ | (3,360 | ) | $ | (4,003 | ) | $ | (7,271 | ) | $ | (6,719 | ) | |||||
| Add: Share based compensation | 646 | 650 | 335 | 1,296 | 546 | |||||||||||||||
| Add: Bad debt provision of receivables | - | - | - | - | - | |||||||||||||||
| Add: Cancellation of project assets | - | - | 839 | - | 839 | |||||||||||||||
| Add: Loss on disposal of project assets | - | - | - | 286 | ||||||||||||||||
| Less: Gains on disposal of property, plant and equipment | - | - | (66 | ) | - | (66 | ) | |||||||||||||
| Non-GAAP operating expenses | $ | (3,265 | ) | $ | (2,710 | ) | $ | (2,895 | ) | $ | (5,975 | ) | $ | (5,114 | ) | |||||
| Reconciliation of Operating Income | ||||||||||||||||||||
| GAAP Operating Income | $ | (222 | ) | $ | (2,219 | ) | $ | 7,293 | $ | (2,441 | ) | $ | 11,377 | |||||||
| Add: Discount of electricity subsidy in China | 406 | 209 | 353 | 615 | 385 | |||||||||||||||
| Add: Share based compensation | 646 | 650 | 335 | 1,296 | 546 | |||||||||||||||
| Add: Bad debt provision of receivables | - | - | - | - | - | |||||||||||||||
| Add: Cancellation of project assets | - | - | 839 | - | 839 | |||||||||||||||
| Add: Loss on disposal of project assets | - | - | - | - | 286 | |||||||||||||||
| Less: Gains on disposal of property, plant and equipment | - | - | (66 | ) | - | (66 | ) | |||||||||||||
| Non-GAAP Operating Income | $ | 830 | $ | (1,360 | ) | $ | 8,754 | $ | (530 | ) | $ | 13,367 | ||||||||
| Reconciliation of Net income attributed to ReneSola Ltd | ||||||||||||||||||||
| GAAP Net income attributed to ReneSola Ltd | $ | (204 | ) | $ | (1,685 | ) | $ | 6,953 | $ | (1,889 | ) | $ | 7,727 | |||||||
| Add: Discount of electricity subsidy in China | 243 | 125 | 211 | 368 | 230 | |||||||||||||||
| Add: Share based compensation | 646 | 650 | 335 | 1,296 | 546 | |||||||||||||||
| Add: Bad debt provision of receivables | - | - | - | - | - | |||||||||||||||
| Add: Cancellation of project assets | - | - | 839 | - | 839 | |||||||||||||||
| Less: Gains on disposal of property, plant and equipment | - | - | (40 | ) | - | (40 | ) | |||||||||||||
| Less: Interest income of discounted electricity subsidy in China | (168 | ) | (181 | ) | (178 | ) | (349 | ) | (334 | ) | ||||||||||
| Add: Foreign exchange loss/(gain) | (872 | ) | 85 | (619 | ) | (787 | ) | 1,259 | ||||||||||||
| Non-GAAP Net income attributed to ReneSola Ltd | $ | (355 | ) | $ | (1,005 | ) | $ | 7,502 | $ | (1,360 | ) | $ | 10,514 | |||||||