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 December
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: December 7, 2022
Exhibit Index
| Exhibit No. | Description | |
| Exhibit 99.1 | Press Release | |
| Exhibit 99.2 | 2022 Third Quarter Financial Results |
Exhibit 99.1
ReneSola Power Announces Third Quarter 2022 Financial Results
Stamford, CT, December 1, 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 third quarter ended September 30, 2022. ReneSola Power's third 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 host a conference call today to discuss results.
Conference Call Details
We will host a conference call today to discuss our third quarter 2022 business and financial results. The call is scheduled to begin at 5:00 p.m. U.S. Eastern Time on Thursday, December 1, 2022 (6:00 a.m. China Standard Time on Friday, December 2, 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/BIc881e9084fe845df83b8f6069412603e
Webcast:
https://edge.media-server.com/mmc/p/jv6yn8cm
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, owner, and operator with a robust pipeline of projects and IPP assets across Europe, North America, and Asia. The Company focuses on solar power project development, construction management and project financing services. With local professional teams in more than 10 countries, ReneSola Power is spread across markets that are experiencing rapid growth in solar thanks to clean energy demand and supportive government policies. 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
December 1, 2022
Fellow Shareholders,
We are excited to report to you today that our Q3 results significantly outperformed the high-end of our guidance range and represents one of our best quarters in the last 3 years. Revenue grew 86% year-over-year to $28.9 million, gross margin was 29.6% and net income was $3.0 million compared to $711 thousand a year ago. We achieved these results despite economic challenges and a stronger dollar, which negatively impacted our revenue and earnings from Europe and China by approximately $3 million. Excluding this FX impact, results would have been even stronger with nearly $32 million revenue and over $5 million in net income. These results were driven by solid performance of our project pipeline and our IPP solar assets in the U.S. and China, and the recently acquired 50 MW solar farm in Branston, U.K.
European Acquisitions and IPP Strategy
On September 30, we acquired Branston for a total transaction value of approximately $41 million, of which approximately $20 million was net cash and $21 million was non-recourse project financing.
This acquisition initiates our European IPP strategy, which will add predictable and stable cash flows to complement our project sales business. Power Purchase Agreement (PPA) prices have been trending strongly across Europe due to energy shortages and favorable regulatory conditions. In Q3, LevelTen estimated that European solar and wind PPA prices increased more than 11% sequentially and over 50% compared to the same period in 2021. In fact, we have already signed attractive PPAs for Branston through March 31, 2027, which we estimate will provide approximately $25 million EBITDA by end of 2026.
On October 10, we acquired Emeren, an Italy-based utility scale solar power and battery storage project developer in Europe through an all-cash deal of approximately $16 million with earn-out provisions. Emeren has over 2.5 GW of pipeline under development (at different stages) including over 2 GW of solar projects and over 500 MW of storage projects.
As part of our European IPP strategy, we decided to withhold approximately 110 MW of project sales in Poland and Hungary that we originally planned to sell at the Notice-to-Proceed (NTP) stage in Q4 2022. We will now construct these projects and operate them in our European IPP portfolio. In October, we completed the first 10 MW across two solar farms in Hungary and expect the remaining 100 MW will be energized by Q3 of 2023. Because of this shift from sale to IPP, we will forgo approximately $20 million revenue and $5 to $6 million net income in Q4 2022, but we will gain significantly higher life-time revenues and stable cash flows. We estimate the payback period for these IPP projects to be 4 years or less, while still retaining the optionality to sell these IPP assets in the future.
Guidance
Due to the strategy shift in Poland and Hungary and to approximately $6 million of unexpected negative foreign exchange impact, we now expect 2022 full year revenue to be in the range of $85 million - $90 million. We expect 2022 gross margin to be 25% to 30%. For net income, we anticipate full year net income will be approximately $7 to $8 million.
In the beginning of the 2022, we set a goal to grow our mid-to-late stage pipeline to 3 GW at the end of the year. Thanks to our team’s strong execution in face of a challenging macro environment and our strategic acquisitions, we achieved that goal.
Looking forward to 2023 and beyond, we have many things to be excited about. We have strong presence in the worlds’ fastest growing solar markets thanks to growing clean energy demand, rising PPA prices and supportive government policies.
In Europe, we are excited about our newly acquired assets and growing IPP portfolio. For Branston, Emeren, and the 110 MWs of IPP projects in Poland and Hungary, we have good visibility into 2023 and expect these assets to contribute approximately $35 to $40 million revenue and $10 to $15 million EBITDA.
We are also aligning our China strategy to the rest of the world as “Develop – Build – Own or Sell”, compared to the original strategy of “Develop – Build – Own as IPP”. We are in the process of monetizing some China projects in Q4 this year.
For our project development business, we expect to monetize approximately 400 MW of our mid-to-late stage pipeline in 2023 and we are targeting to have a total pipeline of 4 GW by end of 2023.
To conclude, the future looks bright for solar energy. We believe we are well-positioned to capitalize on accelerating solar adoption across the world. Given our deep expertise in developing and operating solar projects, our extensive network of industry partnerships, our well-capitalized balance sheet, and our unmatched track record in closing financing transactions and profitably monetizing projects, we are progressing steadily in our goal of becoming a leading global solar developer.
With that overview, we will now review the details of our first quarter operating and financial performance.
Q3 2022 Financial Highlights:
| ● | Revenue of $28.9 million was above the high end of guidance range, up 86% y/y, due to solid performance of our project pipeline and our commercial IPP assets | |
| ● | GAAP gross margin of 29.6% above high end of guidance range | |
| ● | GAAP EBITDA was $6.7 million, up 182% q/q and 86% y/y | |
| ● | GAAP net income was $3.0 million, up from a net loss of $0.2 million q/q |
| (in $ millions) | Q3’22 | Q2’22 | Q/Q Change | |||||||||
| GAAP revenue | $ | 28.9 | $ | 8.2 | +252 | % | ||||||
| GAAP gross profit | $ | 8.5 | $ | 3.7 | +132 | % | ||||||
| GAAP operating income (loss) | $ | 5.0 | $ | (0.2 | ) | +2,371 | % | |||||
| Non-GAAP operating income (loss) | $ | 5.0 | $ | 0.8 | +508 | % | ||||||
| GAAP EBITDA | $ | 6.7 | $ | 2.4 | +182 | % | ||||||
| Adjusted EBITDA | $ | 7.1 | $ | 2.3 | +212 | % | ||||||
| GAAP net income (loss) attributed to ReneSola Power | $ | 3.0 | $ | (0.2 | ) | +1,549 | % | |||||
| Non-GAAP net income (loss) attributed to ReneSola Power | $ | 3.4 | $ | (0.4 | ) | +1,044 | % | |||||
Revenue by segment:
| Segment ($ in thousands) | Q3’22 Revenue | % of Total Revenue | ||||||
| Project Development | 6,318 | 22 | % | |||||
| IPP | 11,358 | 39 | % | |||||
| EPC service | 11,182 | 39 | % | |||||
| Others | 32 | 0 | % | |||||
| Total | 28,890 | 100 | % | |||||
“IPP” consists of sale of electricity in China, U.S., and U.K.
“EPC service” consists of service of design and build the power station.
“Others” refers to operations and maintenance.
Revenue by region:
| Region ($ in thousands) | Q3’22 Revenue | % of Total Revenue | ||||||
| Europe | 16,200 | 56 | % | |||||
| North America | 6,582 | 23 | % | |||||
| China | 6,108 | 21 | % | |||||
| Total | 28,890 | 100 | % | |||||
Mid-to-Late Stage Solar Project Pipeline
In 2022, we achieved our original 3 GW mid-to-late stage pipeline goal, up from 2.1 GWs at the end of 2021. The significant growth strong execution and our recent acquisition of Emeren. For 2024, we are targeting 4 GWs by the end of the year with a significant portion of the growth coming from Europe.
The following table details our mid-to-late stage project pipeline by region:
| Mid-to-late Stage Project Pipeline (MW) | ||||
| Europe | 2,037 | |||
| U.S. | 763 | |||
| China | 169 | |||
| Total | 2,969 | |||
| As of November 30, 2022. | ||||
In addition to the solar PV project portfolio, we also have a storage pipeline of over 1.54 GWh in the U.S. and Europe at different development stages (including 500 MWh solar storage from Emeren) as of November 30, 2022.
Detailed Review of Pipeline by Country (as of November 30, 2022)
| Country | Total MW | Project | MW | Status | Expected RTB / Sale | Business Model | ||||||||
| Poland | 750 | Auction 2020 and 2021 (Solar farms) | 75 | Under Construction | 2022+2023 COD | RTB Sale + EPC | ||||||||
| Portfolio 1 | 560 | Under Development | 2023/2025 RTB | RTB Sale | ||||||||||
| Portfolio 2 | 58 | Under Development | 2022 RTB | RTB Sale + EPC | ||||||||||
| Portfolio 3 | 57 | Under Development | 2022/2023 RTB | IPP | ||||||||||
| Hungary | 91 | Portfolio (some with FIT) | 43 | RTB/Under development | 2022/2023 | IPP | ||||||||
| Portfolio for Corporate PPAs | 48 | Under development | 2023 | Build-Transfer | ||||||||||
| U.K. | 235 | U.K. Portfolio | 235 | Under development | 2023/2024 | RTB Sale | ||||||||
| Spain | 304 | Project Portfolio | 304 | Under development | 2023/2024 | RTB Sale | ||||||||
| Germany | 79 | Project – Kentzlin | 12 | Under development | 2022/2023 | RTB Sale | ||||||||
| Project Portfolios | 67 | Under development | 2023 | RTB Sale | ||||||||||
| France | 131 | Project Portfolios | 113 | Under Development | 2022/2023 | RTB Sale | ||||||||
| Project Portfolios | 18 | Under Development | 2022/2023 | Development Services | ||||||||||
| Italy | 447 | Project Portfolios | 447 | Under development | 2023/2024 | RTB Sale | ||||||||
| Total | 2,037 | 2,037 |
| Country | Total MW | Location | Project Type | Status | Expected NTP / Sale | Business Model | ||||||||
| U.S.A | 179 | Alabama | Utility + Storage | Under Development | 2025 | NTP Sale | ||||||||
| 277 | California | Utility + Storage | Under Development | 2024/2025 | NTP Sale | |||||||||
| 100 | Florida | Utility | Under Development | 2022/2023 | NTP Sale | |||||||||
| 50 | Illinois | Utility + Storage | Under Development | 2023/2024 | NTP Sale | |||||||||
| 10 | Maine | DG & Community | Under Development | 2022 | NTP Sale | |||||||||
| 10 | Minnesota | Community | Under Development | 2022 | NTP Sale | |||||||||
| 130 | New York | Community + Utility | Under Development | 2022 | NTP Sale | |||||||||
| 7 | Virginia | Community | Under Development | 2023/2024 | NTP Sale | |||||||||
| Total | 763 | |||||||||||||
| Country | Total MW | Project (Location) | Project Type | Status | Expected COD | Business Model | ||||||||
| China | 17 | DG (Anhui) | Net Metering | Under development | 2022/2023 | IPP Business | ||||||||
| 43 | DG (Jiangsu) | Net Metering | Under development | 2022/2023 | IPP Business | |||||||||
| 44 | DG (Shandong) | Net Metering | Under development | 2022/2023 | IPP Business | |||||||||
| 29 | DG (Zhejiang) | Net Metering | Under development | 2022/2023 | IPP Business | |||||||||
| 36 | DG (Other Provinces) | Net Metering | Under development | 2022/2023 | IPP Business | |||||||||
| Total | 169 | |||||||||||||
Growing IPP Asset Portfolio in Attractive PPA Regions
As part of our long-term growth plan, we are also building IPP projects and are looking for M&A opportunities across Europe to take advantage of the higher solar PPA prices and the favorable regulatory environment. We currently own and operate 249 MW of IPP projects, of which ~60 MW is in Europe, ~24 MW in U.S. and ~165 MW in China. In Q3, we added a 50 MW solar farm in Branston, U.K. and in October, we completed the construction of 10 MW IPP in Hungary. Looking forward, we have plans to build a total 200 MW IPP assets in Europe by end of 2023.
| Operating Assets | Capacity (MW) | |||
| Europe | 60 | |||
| - Branston | 50 | |||
| - Hungary | 10 | |||
| United States | 24 | |||
| China | 165 | |||
| - Zhejiang | 47 | |||
| - Henan | 46 | |||
| - Anhui | 32 | |||
| - Hebei | 17 | |||
| - Jiangsu | 14 | |||
| - Shandong | 3 | |||
| - Fujian | 6 | |||
| - Other province | 0.4 | |||
| Total | 249 | |||
As of September 30, 2022, except Hungry 10 MW was connected in October 2022
Q3 2022 Financial Results:
All figures refer to the third quarter of 2022, unless stated otherwise.
Revenue
Revenue of $28.9 million grew by 252% sequentially and 86% year-over-year largely driven by our IPP solar assets in China, project development business in the U.S., and strong EPC revenue from Poland. Our recently acquired solar farm in Branston, U.K. also contributed to our revenue growth.
Gross Profit and Gross Margin
Gross profit was $8.5 million and gross margin was 29.6%. This was up from $3.7 million in Q2 2022 and $6.1 million in Q3 2021.
Operating Expense
Operating expenses were $3.5 million compared to $3.9 million in Q2 2022 and $3.4 million in Q3 2021.
Net Income (loss)
Net income attributed to ReneSola Power common shareholders was $3.0 million compared to $0.2 million net loss in Q2 2022 and $0.7 million net income in Q3 2021. Diluted net income per ADS was $0.04 compared to diluted net loss per ADS of $0.00 in Q2 2022 and diluted net income per ADS of $0.01 in Q3 2021.
Cash Flow
Cash used in operating activities was $5.2 million; cash used in investing activities was $31.2 million, and cash used in financing activities was $45.7 million. Cash used in operating activities were mainly driven by project expenditures for Poland, Hungary and U.S. NTP projects. Cash used in investing activities were primarily due to Hungary IPP and acquisition of Branston. Cash used in financing activities primarily related to $42 million share repurchase transacted on September 2, 2022 with ReneSola Singapore Pte. Ltd. (refer to our press release on September 2, 2022)
Financial Position
Cash and cash equivalents at the end of Q3 2022 were $123.0 million compared to $207.9 million at the end of Q2 2022. The decrease was primarily due to the share repurchase, the Branston acquisition, and project and capital expenditures related to the construction of our IPP assets in Poland and Hungary.
Total current assets were $211.7 million compared to $285.7 million at the end of Q2 2022. Our debt-to-asset ratio increased to 12.8% compared to 8.3% in Q2 2022 as a result of non-recourse debt acquired as part of the Branston acquisition.
Recent Shareholder and Board Developments
Following our share repurchase, U.S. based Shah Capital is now the largest shareholder of the Company (~22% ownership) and Himanshu Shah was appointed Chairman of the Board.
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 |
Third Quarter 2022 Earnings Results Conference Call
We will host a conference call today to discuss our third quarter 2022 business and financial results. The call is scheduled to begin at 5:00 p.m. U.S. Eastern Time on Thursday, December 1, 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/BIc881e9084fe845df83b8f6069412603e
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
| Three Months Ended | ||||||||||||
| Sep 30, 2022 | Jun 30, 2022 | Sep 30, 2021 | ||||||||||
| (in thousands, except per ADS data and ADS) | ||||||||||||
| Net revenues | $ | 28,890 | $ | 8,206 | $ | 15,540 | ||||||
| Cost of revenues | (20,347 | ) | (4,517 | ) | (9,454 | ) | ||||||
| Gross profit | 8,543 | 3,689 | 6,086 | |||||||||
| Operating (expenses)/income: | ||||||||||||
| Sales and marketing | - | - | (48 | ) | ||||||||
| General and administrative | (3,597 | ) | (3,875 | ) | (3,399 | ) | ||||||
| Other operating expenses | 95 | (36 | ) | 76 | ||||||||
| Total operating expenses | (3,502 | ) | (3,911 | ) | (3,371 | ) | ||||||
| Income(loss) from operations | 5,041 | (222 | ) | 2,715 | ||||||||
| Non-operating (expenses)/income: | ||||||||||||
| Interest income | 135 | 473 | 278 | |||||||||
| Interest expense | (1,144 | ) | (814 | ) | (975 | ) | ||||||
| Investment income for subsidiaries | 62 | 76 | - | |||||||||
| Foreign exchange (losses)/gains | (391 | ) | 872 | (694 | ) | |||||||
| Total non-operating (expenses)/income | (1,338 | ) | 607 | (1,391 | ) | |||||||
| Income before income tax | 3,703 | 385 | 1,324 | |||||||||
| Income tax expense | (171 | ) | (349 | ) | (197 | ) | ||||||
| Income, net of tax | 3,532 | 36 | 1,127 | |||||||||
| Less: Net income attributed to non-controlling interests | 576 | 240 | 416 | |||||||||
| Net income(loss) attributed to ReneSola Ltd | $ | 2,956 | $ | (204 | ) | $ | 711 | |||||
| Income (loss) attributed to ReneSola Ltd per ADS | ||||||||||||
| Basic | $ | 0.05 | $ | (0.00 | ) | $ | 0.01 | |||||
| Diluted | $ | 0.04 | $ | (0.00 | ) | $ | 0.01 | |||||
| Weighted average number of ADS used in computing income/(loss) per ADS* | ||||||||||||
| Basic | 65,618,248 | 66,956,781 | 69,760,475 | |||||||||
| Diluted | 66,260,078 | 67,562,988 | 70,433,809 | |||||||||
*Each American depositary shares (ADS) represents 10 common shares
Appendix 2: Unaudited Consolidated Balance Sheet
| Sep 30, 2022 | Jun 30, 2022 | Sep 30, 2021 | ||||||||||
| ASSETS | (in thousands) | |||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 122,988 | $ | 207,877 | $ | 275,388 | ||||||
| Restricted cash | 5 | 157 | 456 | |||||||||
| Accounts receivable trade, net | 36,033 | 27,332 | 44,009 | |||||||||
| Accounts receivable unbilled | 12,059 | 8,744 | - | |||||||||
| Advances to suppliers | 460 | 2,398 | 996 | |||||||||
| Value added tax receivable | 4,645 | 3,329 | 4,289 | |||||||||
| Prepaid expenses and other current assets, net | 15,531 | 19,366 | 13,047 | |||||||||
| Project assets current | 20,008 | 16,457 | 13,044 | |||||||||
| Total current assets | 211,729 | 285,660 | 351,229 | |||||||||
| Property, plant and equipment, net | 164,899 | 121,199 | 121,763 | |||||||||
| Deferred tax assets, net | 695 | 739 | 768 | |||||||||
| Project assets non-current | 15,940 | 15,940 | 5,159 | |||||||||
| Goodwill | 1,023 | 1,023 | 1,023 | |||||||||
| Long-term invetements in U.S. Treasury Bills | 9,989 | 10,043 | - | |||||||||
| Operating lease right-of-use assets | 16,518 | 16,484 | 20,494 | |||||||||
| Finance lease right-of-use assets | 21,269 | 22,920 | 25,037 | |||||||||
| Other non-current assets | 25,155 | 26,246 | 30,478 | |||||||||
| Total assets | $ | 467,217 | $ | 500,254 | $ | 555,951 | ||||||
| Current liabilities: | ||||||||||||
| Short-term borrowings | 394 | - | - | |||||||||
| Accounts payable | 6,535 | 2,720 | 4,740 | |||||||||
| Advances from customers | 202 | 202 | 82 | |||||||||
| Amounts due to related parties | 9,002 | 9,666 | 7,944 | |||||||||
| Other current liabilities | 6,725 | 6,562 | 9,927 | |||||||||
| Income tax payable | 466 | 489 | 544 | |||||||||
| Salaries payable | 765 | 601 | 319 | |||||||||
| Operating lease liabilities current | 257 | 205 | 509 | |||||||||
| Failed sale-lease back and finance lease liabilities current | 9,618 | 10,692 | 12,299 | |||||||||
| Total current liabilities | 33,964 | 31,137 | 36,364 | |||||||||
| Long-term borrowings | 20,816 | 49 | 65 | |||||||||
| Operating lease liabilities non-current | 15,482 | 15,428 | 19,493 | |||||||||
| Failed sale-lease back and finance lease liabilities non-current | 17,180 | 21,147 | 31,669 | |||||||||
| Total liabilities | $ | 87,442 | $ | 67,761 | $ | 87,591 | ||||||
| Shareholders' equity | ||||||||||||
| Common shares | 806,283 | 847,745 | 847,426 | |||||||||
| Additional paid-in capital | 13,215 | 13,593 | 10,688 | |||||||||
| Treasury stock | (20,000 | ) | (20,000 | ) | - | |||||||
| Accumulated deficit | (431,639 | ) | (434,595 | ) | (431,127 | ) | ||||||
| Accumulated other comprehensive loss | (28,736 | ) | (16,558 | ) | (4,066 | ) | ||||||
| Total equity attributed to ReneSola Ltd | $ | 339,123 | $ | 390,185 | $ | 422,921 | ||||||
| Noncontrolling interest | 40,652 | 42,308 | 45,439 | |||||||||
| Total shareholders' equity | 379,775 | 432,493 | 468,360 | |||||||||
| Total liabilities and shareholders' equity | $ | 467,217 | $ | 500,254 | $ | 555,951 | ||||||
Appendix 3: Unaudited Consolidated Cash Flow Statement
| Three Months Ended | ||||||||||||
| Sep 30, 2022 | Jun 30, 2022 | Sep 30, 2021 | ||||||||||
| (in thousands) | ||||||||||||
| Net cash used in operating activities | $ | (5,206 | ) | $ | (7,862 | ) | $ | (5,054 | ) | |||
| Net cash used in investing activities | (31,201 | ) | (1,973 | ) | (2,975 | ) | ||||||
| Net cash used in financing activities | (45,671 | ) | (4,935 | ) | (2,210 | ) | ||||||
| Effect of exchange rate changes | (2,963 | ) | (104 | ) | 67 | |||||||
| Net decrease in cash and cash equivalents and restricted cash | (85,041 | ) | (14,874 | ) | (10,172 | ) | ||||||
| Cash and cash equivalents and restricted cash, beginning of the period | 208,034 | 222,908 | 286,016 | |||||||||
| Cash and cash equivalents and restricted cash, end of the period | $ | 122,993 | $ | 208,034 | $ | 275,844 | ||||||
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 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 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.
GAAP to Non-GAAP Unaudited Reconciliation
| Three Months Ended | ||||||||||||
| Sep 30, 2022 | Jun 30, 2022 | Sep 30, 2021 | ||||||||||
| (in thousands) | ||||||||||||
| Reconciliation of Revenue | ||||||||||||
| GAAP Net revenue | $ | 28,890 | $ | 8,206 | $ | 15,540 | ||||||
| Add: Discount of electricity subsidy in China | - | 406 | 32 | |||||||||
| Non-GAAP Net revenue | $ | 28,890 | $ | 8,612 | $ | 15,572 | ||||||
| GAAP Gross Margin | ||||||||||||
| US. GAAP as reported | $ | 8,543 | $ | 3,689 | $ | 6,086 | ||||||
| Add: Discount of electricity subsidy in China | - | 406 | 32 | |||||||||
| Non-GAAP Gross Margin | $ | 8,543 | $ | 4,095 | $ | 6,118 | ||||||
| Reconciliation of operating expenses | ||||||||||||
| GAAP operating expenses | $ | (3,502 | ) | $ | (3,911 | ) | $ | (3,371 | ) | |||
| Add: Share based compensation | 8 | 646 | 404 | |||||||||
| Non-GAAP operating expenses | $ | (3,494 | ) | $ | (3,265 | ) | $ | (2,967 | ) | |||
| Reconciliation of Operating Income | ||||||||||||
| GAAP Operating Income | $ | 5,041 | $ | (222 | ) | $ | 2,715 | |||||
| Add: Discount of electricity subsidy in China | - | 406 | 32 | |||||||||
| Add: Share based compensation | 8 | 646 | 404 | |||||||||
| Non-GAAP Operating Income | $ | 5,049 | $ | 830 | $ | 3,151 | ||||||
| Reconciliation of Net income (loss) attributed to ReneSola Ltd | ||||||||||||
| GAAP Net income attributed to ReneSola Ltd | $ | 2,955 | $ | (204 | ) | $ | 711 | |||||
| Add: Discount of electricity subsidy in China | - | 243 | 19 | |||||||||
| Add: Share based compensation | 8 | 646 | 404 | |||||||||
| Less: Interest income of discounted electricity subsidy in China | - | (168 | ) | (138 | ) | |||||||
| Add: Foreign exchange loss/(gain) | 391 | (872 | ) | 694 | ||||||||
| Non-GAAP Net income (loss) attributed to ReneSola Ltd | $ | 3,354 | $ | (355 | ) | $ | 1,690 | |||||
Appendix 5 Adjusted EBITDA
| Three months ended | ||||||||||||
| Sep 30, 2022 | Jun 30, 2022 | Sep 30, 2021 | ||||||||||
| (in thousands) | ||||||||||||
| Net Income | $ | 3,532 | $ | 36 | $ | 1,127 | ||||||
| Income tax expenses | 171 | 349 | 197 | |||||||||
| Interest expenses,net off interest income | 1,009 | 341 | 697 | |||||||||
| Depreciation & Amortization | 2,031 | 1,663 | 1,596 | |||||||||
| EBITDA | 6,743 | 2,389 | 3,617 | |||||||||
| Discount of electricity subsidy in china | - | 406 | 32 | |||||||||
| Share based compensation | 8 | 646 | 404 | |||||||||
| Interest income of discounted electricity subsidy in china | - | (281 | ) | (231 | ) | |||||||
| Foreign exchange loss/(gain) | 391 | (872 | ) | 694 | ||||||||
| Adjusted EBITDA | $ | 7,142 | $ | 2,288 | $ | 4,516 | ||||||