JIASHAN, China, May 16, 2013 /PRNewswire/ -- ReneSola Ltd ("ReneSola" or the "Company") (NYSE: SOL), a leading brand and technology provider of solar photovoltaic ("PV") products, today announced its unaudited financial results for the first quarter ended March 31, 2013.
First Quarter 2013 Financial and Operating Highlights
"Over the past year, we have worked hard to transform our company into a leading global solar brand and technology leader," said Mr. Xianshou Li, ReneSola's chief executive officer. "With vigorous sales and marketing efforts, we have expanded our module business in several key markets, including the United Kingdom, Germany, France, the United States, Australia, India and Japan. Additionally, we continue to push our R&D with downstream products like our AC module and small-scale storage system, and we plan to offer residential PV solutions soon. Although we are seeing the solar market stabilize, a persistent demand-supply imbalance, coupled with competitive pricing, continues to impact our business and the overall industry. Despite this challenging macro environment, we will continue to invest in technologies that help reduce cost and improve efficiency in order to grow our business and gain new global market share."
First Quarter 2013 Results
Solar Wafer and Module Shipments
1Q13 | 4Q12 | 1Q12 | Q-o-Q% | Y-o-Y% | |
Total Solar Wafer and Module | 662.1 | 713.2 | 466.0 | (7.2%) | 42.1% |
Wafer Shipments (MW) | 335.5 | 392.7 | 375.1 | (14.6%) | (10.6%) |
Module Shipments (MW) | 326.6 | 320.5 | 90.9 | 1.9% | 259.3% |
The sequential decrease in solar product shipments was mainly the result of a decrease in sales of the Company's wafer business due to additional wafers being used to produce ReneSola-branded modules, partially offset by increased demand for the Company's solar modules across a number of geographic regions and the increasing competitiveness of solar power as a viable power source.
Net Revenues
1Q13 | 4Q12 | 1Q12 | Q-o-Q% | Y-o-Y% | |
Net Revenues (US$mln) | $284.2 | $306.5 | $211.5 | (7.3%) | 34.4% |
Revenues in Q1 2013 decreased quarter over quarter due to a decrease in the average selling prices ("ASPs") of solar wafers and modules from US$0.24 per watt ("W") and US$0.63/W, respectively, to US$0.22/W and US$0.61/W, respectively, as well the decrease in wafer shipments.
Gross Profit (Loss)
1Q13 | 4Q12 | 1Q12 | Q-o-Q% | Y-o-Y% | |
Gross Profit (Loss) (US$mln) | ($5.6) | $10.3 | ($8.0) | (154.4%) | - |
Gross Margin | (2.0%) | 3.3% | (3.8%) | - | - |
The decrease in gross profit was due to the significant decline in ASPs and the decrease in wafer shipments, as well as the temporary halt in production at the Company's Sichuan polysilicon plant to upgrade its facilities and equipment.
Operating Loss
1Q13 | 4Q12 | 1Q12 | Q-o-Q% | Y-o-Y% | |
Operating Expenses (US$mln) | $27.8 | $34.0 | $29.8 | (18.2%) | (6.7%) |
Operating Loss (US$mln) | ($33.4) | ($23.8) | ($37.8) | (40.3%) | - |
Operating Margin | (11.8%) | (7.8%) | (17.9 %) | - | - |
The decrease in operating expenses was primarily due to a reduction in the Company's research and development ("R&D") expenses in Q1 2013.
Foreign Exchange Gain (Loss)
The Company had a foreign exchange loss of US$3.0 million in Q1 2013, primarily due to the depreciation of the euro against the renminbi ("RMB"), compared to a gain of US$3.1 million in Q4 2012. The Company also recognized a US$3.9 million gain on foreign currency derivatives, compared to a gain of US$0.9 million in Q4 2012.
Net Loss Attributable to Holders of Ordinary Shares
1Q13 | 4Q12 | 1Q12 | |
Net Loss (US$mln) | ($39.0) | ($88.9) | ($40.2) |
Diluted Loss per Share | ($0.23) | ($0.51) | ($0.23) |
Diluted Loss per ADS | ($0.45) | ($1.03) | ($0.47) |
Business Highlights
Research and Development
ReneSola continued to invest in R&D in Q1 2013 to improve the technology behind its brand, products and manufacturing processes. With regard to solar wafers, the Company's next generation Virtus A+++ wafer, with an average efficiency of 0.15% to 0.20% higher than that of Virtus A++, will begin mass production in Q2 2013.
With regard to solar modules, the Company's 210 W monocrystalline and 260 W multicrystalline modules are now in full production. The Company's full line of solar module products has achieved potential induced degradation ("PID") free status, further substantiating their reliability. Recently, the Company's solar modules have been accredited by TUV NORD, a leading German industry-certification body, demonstrating that ReneSola products can withstand difficult desert-like and dusty conditions.
ReneSola is developing a proprietary, second-generation Micro Replus microinverter, which will reduce the cost to customers by 20% compared to the first generation model. ReneSola is also developing an AC module that combines a solar module with Micro Replus. At the same time, a specialized, small-scale storage research team has been established to develop a series of systems that would largely increase the efficiency of ReneSola's products.
Recent Business Developments
Liquidity and Capital Resources
Net cash inflow from operating activities was US$4.2 million in Q1 2013, compared to net cash inflow from operating activities of US$25.8 million in Q4 2012. Net cash and cash equivalents plus restricted cash improved to US$442.7 million at the end of Q1 2013, compared to US$268.1 million at the end of Q4 2012.
Total debt was US$958.6 million at the end of Q1 2013, compared to US$790.2 million at the end of Q4 2012, excluding US$111.6 million of convertible notes due March 15, 2018, unless repurchased or converted at an earlier date. Short-term borrowings were US$832.8 million in Q1 2013, compared to US$733.6 million in Q4 2012.
Capital expenditures were US$5.7 million in Q1 2013, primarily to expand the Company's polysilicon production capacity and integrate Phase II of its Sichuan polysilicon production plant.
Outlook
For Q2 2013, the Company expects total solar wafer and module shipments to be in the range of 700 MW to 720 MW, with solar module shipments expected to be in the range of 400 MW to 420 MW. Revenues are expected to be in the range of US$310 million to US$330 million and gross margin is expected to be in the range of 3% to 5%. Operating cash flow is expected to exceed US$40 million.
For the full year 2013, the Company expects total solar wafer and module shipments to be in the range of 2.7 GW to 2.9 GW, with solar module shipments expected to be in the range of 1.4 GW to 1.6 GW.
Conference Call Information
ReneSola's management will host an earnings conference call on Thursday, May 16, 2013 at 8 am U.S. Eastern Time (8 pm Beijing/Hong Kong time).
Dial-in details for the earnings conference call are as follows:
U.S. / International: | +1-718-354-1231 |
Hong Kong: | +852-2475-0994 |
Please dial in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is "ReneSola Call".
A replay of the conference call may be accessed by phone at the following number until May 23, 2013:
International: | +1-646-254-3697 |
Passcode: | 51826642 |
Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of ReneSola's website at www.renesola.com.
About ReneSola
Founded in 2005, ReneSola (NYSE:SOL) is a leading brand and technology provider of solar PV products. Leveraging its proprietary technologies, economies of scale and technical expertise, ReneSola uses in-house virgin polysilicon and a vertically integrated business model to provide customers with high-quality, cost-competitive products. ReneSola solar modules have scored top PVUSA Test Conditions (PTC) ratings with high annual kilowatt-hour output, according to the California Energy Commission (CEC). ReneSola solar PV modules can be found in projects ranging in size from a few kilowatts to multi-megawatts in markets around the world, including the United States, Germany, Italy, Belgium, China, Greece, Spain and Australia. For more information, please visit www.renesola.com.
Safe Harbor Statement
This press release contains statements that constitute ''forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. Whenever you read a statement that is not simply a statement of historical fact (such as when the Company describes what it "believes," "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. The Company does not guarantee that the forward-looking statements will happen as described or that they will happen at all. Further information regarding risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements is included in the Company's filings with the U.S. Securities and Exchange Commission, including the Company's annual report on Form 20-F. The Company undertakes no obligation, beyond that required by law, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made, even though the Company's situation may change in the future.
For investor and media inquiries, please contact:
In China:
Mr. Tony Hung
ReneSola Ltd
Tel: +86-573-8473-9011
Email: ir@renesola.com
Mr. Derek Mitchell
Ogilvy Financial, Beijing
Tel: +86-10-8520-3073
Email: sol@ogilvy.com
In the United States:
Ms. Jessica Barist Cohen
Ogilvy Financial, New York
Tel: +1-646-460-9989
Email: sol@ogilvy.com
RENESOLA LTD | |||||
Unaudited Consolidated Balance Sheet | |||||
(US dollars in thousands) | |||||
Mar 31, | Dec 31, | Mar 31, | |||
2013 | 2012 | 2012 | |||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | 142,983 | 93,283 | 338,899 | ||
Restricted cash | 299,681 | 174,828 | 49,392 | ||
Accounts receivable, net of allowances for doubtful accounts | 263,737 | 216,835 | 170,817 | ||
Inventories | 292,767 | 254,880 | 176,410 | ||
Advances to suppliers-current | 10,355 | 23,614 | 25,449 | ||
Amounts due from related parties | 9,133 | 10,804 | 22,807 | ||
Value added tax recoverable | 35,271 | 34,962 | 55,369 | ||
Income tax recoverable | 3,011 | 2,753 | 8,308 | ||
Prepaid expenses and other current assets | 27,748 | 32,799 | 26,408 | ||
Project assets | 30,572 | 25,802 | - | ||
Deferred convertible bond issue costs-current | 784 | 784 | 784 | ||
Derivative assets | 3,417 | 660 | 826 | ||
Assets held-for-sale | - | - | 6,449 | ||
Deferred tax assets-current | 2,856 | 1,773 | 15,770 | ||
Total current assets | 1,122,315 | 873,777 | 897,688 | ||
Property, plant and equipment, net | 1,123,584 | 1,102,562 | 985,977 | ||
Prepaid land use right | 47,250 | 49,937 | 49,120 | ||
Deferred tax assets-non-current | 17,325 | 13,530 | 28,805 | ||
Deferred convertible bond issue costs-non-current | 1,530 | 1,726 | 2,314 | ||
Advances to suppliers-non-current | 5,928 | 5,928 | 15,604 | ||
Advances for purchases of property, plant and equipment | 6,985 | 8,317 | 51,123 | ||
Other long-term assets | 2,365 | 2,546 | 10,942 | ||
Goodwill | - | - | 6,095 | ||
Total assets | 2,327,282 | 2,058,323 | 2,047,668 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Current liabilities: | |||||
Short-term borrowings | 832,766 | 733,618 | 662,605 | ||
Accounts payable | 569,391 | 483,025 | 283,067 | ||
Advances from customers-current | 70,067 | 40,384 | 55,603 | ||
Amounts due to related parties | 24,886 | 18,826 | 26,147 | ||
Other current liabilities | 199,620 | 162,849 | 99,876 | ||
Income tax payable | 2,680 | 2,552 | 4,111 | ||
Derivative liabilities | 131 | 975 | 150 | ||
Total current liabilities | 1,699,541 | 1,442,229 | 1,131,559 | ||
Convertible bond payable-non-current | 111,616 | 111,616 | 111,616 | ||
Long-term borrowings | 125,883 | 56,580 | 138,198 | ||
Advances from customers-non-current | 6,168 | 32,271 | 49,039 | ||
Warranty | 12,317 | 10,317 | 13,816 | ||
Deferred gain | 36,527 | 29,894 | 29,527 | ||
Other long-term liabilities | 8,042 | 11,014 | 12,339 | ||
Total liabilities | 2,000,094 | 1,693,921 | 1,486,094 | ||
Shareholders' equity | |||||
Common shares | 421,461 | 421,461 | 420,370 | ||
Additional paid-in capital | 5,525 | 5,250 | 5,106 | ||
Retained earnings/(Accumulated losses) | (176,660) | (137,656) | 64,650 | ||
Accumulated other comprehensive income | 76,376 | 74,835 | 71,176 | ||
Total equity attribute to ReneSola Ltd | 326,702 | 363,890 | 561,302 | ||
Non-controlling interest | 486 | 512 | 272 | ||
Total shareholders' equity | 327,188 | 364,402 | 561,574 | ||
Total liabilities and shareholders' equity | 2,327,282 | 2,058,323 | 2,047,668 |
RENESOLA LTD | ||||||
Unaudited Consolidated Statements of Income | ||||||
(US dollar in thousands, except ADS and share data) | ||||||
Three Months Ended | ||||||
Mar 31, 2013 | Dec 31, 2012 | Mar 31, 2012 | ||||
Net revenues | 284,165 | 306,454 | 211,485 | |||
Cost of revenues | (289,771) | (296,193) | (219,518) | |||
Gross profit (loss) | (5,606) | 10,261 | (8,033) | |||
GP% | (2.0%) | 3.3% | (3.8%) | |||
Operating (expenses) income: | ||||||
Sales and marketing | (12,223) | (11,097) | (5,639) | |||
General and administrative | (15,136) | (12,074) | (12,562) | |||
Research and development | (5,982) | (10,612) | (11,713) | |||
Other operating income, net | 5,522 | 3,894 | 143 | |||
Goodwill impairment | - | (378) | - | |||
Intangible asset impairment | - | (3,764) | - | |||
Total operating expenses | (27,819) | (34,031) | (29,771) | |||
Loss from operations | (33,425) | (23,770) | (37,804) | |||
Non-operating (expenses) income: | ||||||
Interest income | 1,548 | 1,380 | 2,806 | |||
Interest expense | (13,118) | (12,950) | (12,308) | |||
Foreign exchange gain (loss) | (3,011) | 3,054 | 801 | |||
Gain on derivatives, net | 3,865 | 881 | 36 | |||
Total non-operating expenses | (10,716) | (7,635) | (8,665) | |||
Loss before income tax, non-controlling interests | (44,141) | (31,405) | (46,469) | |||
Income tax benefit (expense) | 5,131 | (57,508) | 6,249 | |||
Net loss | (39,010) | (88,913) | (40,220) | |||
Less: Net loss attributed to non-controlling interests | (6) | (2) | (11) | |||
Net loss attributed to holders of ordinary shares | (39,004) | (88,911) | (40,209) | |||
Earnings per share | ||||||
Basic | (0.23) | (0.51) | (0.23) | |||
Diluted | (0.23) | (0.51) | (0.23) | |||
Earnings per ADS | ||||||
Basic | (0.45) | (1.03) | (0.47) | |||
Diluted | (0.45) | (1.03) | (0.47) | |||
Weighted average number of shares used in computing earnings per share | ||||||
Basic | 172,773,664 | 172,773,664 | 172,613,664 | |||
Diluted | 172,773,664 | 172,773,664 | 172,613,664 | |||
Three Months ended | ||||||
Mar 31, 2013 | Dec 31, 2012 | Mar 31, 2012 | ||||
Net loss | (39,010) | (88,913) | (40,220) | |||
Other comprehensive income | ||||||
Foreign exchange translation adjustment | 1,541 | 4,129 | (470) | |||
Other comprehensive income | 1,541 | 4,129 | (470) | |||
Comprehensive loss | (37,469) | (84,784) | (40,690) | |||
Less: comprehensive loss attributable to non-controlling | (6) | (2) | (11) | |||
Comprehensive loss attributable to ReneSola | (37,463) | (84,782) | (40,679) |
RENESOLA LTD | |||||
Unaudited Consolidated Statements of Cash Flow | |||||
(US dollar in thousands) | |||||
Three Months Ended | |||||
Mar 31, 2013 | Mar 31, 2012 | ||||
Cash flow from operating activities: | |||||
Net loss | (39,010) | (40,220) | |||
Adjustment to reconcile net loss to net cash (used in) provided by operating | |||||
Gain on disposal of subsidiary | - | (55) | |||
Inventory write-down | 402 | 12,201 | |||
Depreciation and amortization | 24,882 | 22,897 | |||
Amortization of deferred convertible bond issuances costs and premium | 196 | 196 | |||
Allowance of doubtful receivables and advance to suppliers | 2,613 | 90 | |||
Gains on derivatives | (3,865) | (36) | |||
Share-based compensation | 275 | 995 | |||
Loss on disposal of long-lived assets | 31 | 115 | |||
Gain on disposal of land use right | (4,694) | - | |||
Changes in assets and liabilities: | |||||
Accounts receivables | (56,437) | (63,987) | |||
Inventories | (38,422) | (34,740) | |||
Advances to suppliers | 13,307 | (7,255) | |||
Amounts due from related parties | 7,679 | 4,626 | |||
Value added tax recoverable | (202) | (13,512) | |||
Prepaid expenses and other current assets | 7,165 | (6,274) | |||
Prepaid land use rights | 7,531 | (127) | |||
Accounts payable | 84,838 | 47,311 | |||
Advances from customers | 3,882 | (1,613) | |||
Income tax payable | (7,713) | (356) | |||
Other current liabilities | 8,164 | (2,369) | |||
Other long-term liabilities | (3,248) | (241) | |||
Accrued warranty cost | 1,964 | 986 | |||
Deferred taxes assets | 2,502 | (6,249) | |||
Project assets | (5,681) | - | |||
Provision for litigation | (1,941) | - | |||
Net cash provided by (used in) operating activities | 4,218 | (87,617) | |||
Cash flow from investing activities: | |||||
Purchases of property, plant and equipment | (5,730) | (45,020) | |||
Cash received from government subsidy | 6,741 | 634 | |||
Proceeds from disposal of property, plant and equipment | - | 22 | |||
Changes in restricted cash | (124,070) | 8,895 | |||
Net proceeds from settlement of derivatives | 265 | 115 | |||
Prepayment for investment | - | (1,912) | |||
Net cash used in investing activities | (122,794) | (37,266) | |||
Cash flow from financing activities: | |||||
Proceeds from bank borrowings | 488,567 | 278,764 | |||
Repayment of bank borrowings | (320,325) | (193,253) | |||
Contribution from non-controlling interests | (21) | 127 | |||
Net cash provided by financing activities | 168,221 | 85,638 | |||
Effect of exchange rate changes | 55 | (895) | |||
Net increase (decrease) in cash and cash equivalent | 49,700 | (40,140) | |||
Cash and cash equivalent, beginning of year | 93,283 | 379,039 | |||
Cash and cash equivalent, end of year | 142,983 | 338,899 |