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 April 2018

 

Commission File Number: 001-33911

 


_______________________

 

RENESOLA LTD
_______________________

 

7/F, Block B, Future Land Holdings Tower

No. 5, Lane 388, Zhongjiang Road

Putuo District, Shanghai 200062

(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/ Xianshou Li                                   
   
  Name:   Xianshou Li
  Title:     Chief Executive Officer

 

 

Date: April 25, 2018

 

 

 

 

 

Exhibit Index

 

Exhibit No.

 

Description

     
Exhibit 99.1   Press Release

 

 

 

 

 

Exhibit 99.1

 

 

 

 

 

ReneSola Announces Fourth Quarter and Full Year 2017 Results from Continuing Operations

 

Shanghai, China, April 25, 2018 – ReneSola Ltd (“ReneSola” or the “Company”) (www.renesolapower.com) (NYSE: SOL), a leading solar project developer and operator, today announced its unaudited financial results from continuing operations for the fourth quarter and full year ended December 31, 2017.

 

Unless otherwise specified, the results presented herein exclude discontinued operations. Discontinued operations relate to the Company’s manufacturing business (including polysilicon, solar wafer, solar cell and solar module manufacturing) and LED distribution business which were disposed of in the third quarter of 2017. The Company’s full financial results including discontinued operations are not available at this time.

 

Mr. Xianshou Li, ReneSola's Chief Executive Officer, commented, “2017 was a transformative year for the Company. We exited the manufacturing business, becoming a pure play in the rapidly growing project development market. As a result, the fundamentals for our project business significantly improved. We achieved profitability and maintained a healthy balance sheet, providing the financial flexibility to drive growth. In 2017, we successfully connected 270 MW of solar rooftop projects in China and entered into the Hungarian market with a pipeline of 38.4 MW. Additionally, our overall solar power project pipeline remains solid at around 1.1 GW.”

 

Li continued, “Fourth quarter results were largely in-line with our expectations. On a year-over-year basis, Q4 revenue growth was over 60%, and operating income was up over 136%. We remain excited about the opportunities ahead of us, and believe that our talented team, diversified geographic coverage and track record of success at every stage of project development will position us for profitable growth.”

 

 

Fourth Quarter 2017 Highlights

 

 

 

 

Q4 2017

($ in million)

Q/Q Change Y/Y Change
Revenue $64.8 +78.6% +61.1%
Gross Profit $6.8 +7.3% +71.5%
Operating Income $4.9 +28.2% +136.1%
EBITDA $4.7 -28.6% +94.5%
Income (loss) before Income Tax and Noncontrolling interests from Continuing Operations $2.0 -49.8% +14.8%

 

 

·Revenue was $64.8 million, compared to the guidance range of $55 million to $60 million;
·Gross margin was 10.5%, compared to 17.5% in Q3 2017 and 9.9% in Q4 2016;
·Income before income tax and noncontrolling interests from continuing operations was $2.0 million, compared to $4.0 million in Q3 2017 and $1.7 million in Q4 2016;
·Recognized revenue of $44.4 million from sales of distributed generation (DG) projects in China, community solar projects in the United States and utility projects in Turkey;
·Recognized revenue of $15.4 million from EPC services for 25 MW of DG projects in China;
·Recognized revenue from the sale of electricity of $5.0 million;
·Connected 76.8 MW of rooftop projects in China which the Company intends to hold; and
·Solar power project pipeline of approximately 1.1 GW, of which 546.5 MW are late-stage.

 

 

 

 

 

 

 

 

 

Full Year 2017 Highlights

 

 

 

2017

($ in million)

2016

($ in million)

Y/Y Change
Revenue $103.0 $80.5 +27.9%
Gross Profit $14.1 $7.2 +95.4%
Operating Income $6.6 $2.3 +179.1%
EBITDA $11.6 $4.7 +149.4%
Income (loss) before Income Tax and Noncontrolling interests from Continuing Operations $3.5 $0.2 +1,447.6%

 

·Revenue increased 27.9% to $103.0 million from $80.5 million in 2016;
·Gross margin was 13.7%, compared to 9.0% in 2016;
·Income before income tax and noncontrolling interests from continuing operations was $3.5 million, compared to $0.2 million in 2016;
·Recognized revenue of $64.8 million from sales of solar projects;
·Recognized revenue of $25.9 million from the EPC business;
·Recognized revenue from the sale of electricity of $12.3 million; and
·Connected a total of 270 MW of rooftop projects in China.

 

 

Fourth Quarter 2017 Financial Results

 

Revenue from continuing operations was $64.8 million was up 78.6% q/q and up 61.2% y/y.

 

·Revenue from the Project Development business was $44.4 million as we recognized revenue from sales of projects of 44.2 MW in China, 8.1 MW in Turkey and 13.3 MW in Minnesota.

 

·Revenue from the EPC business was $15.4 million as we recognized revenue from the provision of EPC services of 25 MW in China.

 

·Revenue from the sale of electricity was $5.0 million. The Company generated 22.6 million kwh of electricity from its operating projects in China during the quarter.

 

Gross profit of $6.8 million was up 7.3% q/q and 71.5% y/y. Gross margin was 10.5%, compared to 17.5% in Q3 2017 and 9.9% in Q4 2016.

 

Operating expenses were $2.0 million, down from $2.5 million in Q3 2017 and up slightly from $1.9 million in Q4 2016. Sales and marketing expenses were $0.6 million, essentially flat when compared to Q3 2017. General and administrative expenses were $1.7 million, down modestly from $1.9 million in Q3 2017.

 

Operating income was $4.9 million, compared to $3.8 million in Q3 2017 and $2.1 million in Q4 2016.

 

Total non-operating expenses of $2.9 million included interest expenses of $1.1 million and foreign exchange loss of $1.7 million.

 

Income before income tax and noncontrolling interests from continuing operations was $2.0 million, compared to $4.0 million in Q3 2017 and $1.7 million in Q4 2016.

 

Financial Position

 

The Company had cash and cash equivalents of $13.4 million as of December 31, 2017, compared to $5.2 million as of September 30, 2017. Long-term borrowings were $32.5 million as of December 31, 2017, associated with the Romanian projects. Other long-term liabilities were $67.5 million as of Decemember 31, 2017, associated with the financial leasing payables for rooftop projects in China.

 

 

 

 

 

 

 

 

 

Full Year 2017 Financial Results

 

Revenue from continuing operations was $103.0 million was up 27.9% y/y.

 

·Revenue from the Project Development business was $64.8 million.

 

·Revenue from the EPC business was $25.9 million.

 

·Revenue from the sale of electricity was $12.3 million.

 

Gross profit of $14.1 million was up 95.4% y/y. Gross margin was 13.7%, compared to 9.0% in 2016.

 

Operating expenses were $7.6 million, up from $4.9 million in 2016. Sales and marketing expenses were $1.7 million, up from $0.5 million in 2016. General and administrative expenses were $6.2 million, down from $6.8 million in 2016.

 

Operating income was $6.6 million, compared to $2.3 million in 2016.

 

Total non-operating expenses of $3.0 million included interest expenses of $3.9 million and foreign exchange gains of $0.9 million.

 

Income before income tax and noncontrolling interests from continuing operations was $3.5 million, compared to $0.2 million in 2016.

 

Recent Business Updates

 

·The Company are now in late stage discussion with a strategic investor to form a partnership to co-own the Company’s China DG Holdco. The investor plans to inject 200 million RMB in cash into the Holdco, in exchange for minority interest of the Holdco. We are hoping to finalize the details of our partnership in a few days.

 

·In recent months the Company successfully penetrated the Hungarian solar market, securing a project pipeline of 38.4 MW. Additionally, the Comapny is developing solar projects in other new markets, including Spain, South Korea and India. In Spain, the Company currently has an early-stage pipeline of 162 MW.

 

·In the first quarter of 2018, the Company was awarded 16 solar projects in France with a combined capacity of 4.65 MW.

 

·In March 2018, the Company announced that it formed a strategic partnership with Green City Energy, a subsidiary of Green City e.V., a Munich, Germany-based project developer and financier focused on building, financing and operating renewable energy power plants in selected European markets, to jointly develop four solar parks in the south of France with a total installed capacity of 69 MW, generating approximately 105 million kWh of solar power per year.

 

·In March 2018, the Company announced that Mr. Weiguo Zhou, an independent director and a member of compensation committee and nominating and corporate governance committee, was appointed interim Chief Financial Officer. Mr. Zhou succeeds Maggie Ma, whose resignation was effective February 28. Mr. Zhou has stepped down as an independent director during the period he serves as interim Chief Financial Officer and remains a member of the board of directors and a member of compensation committee and nominating and corporate governance committee.

 

 

 

 

 

 

 

 

 

Operating Assets and Completed Projects for Sale

 

The Company continues to pursue opportunities in small-scale projects in diversified regions and believes its strategy can capitalize on trends in solar energy development. ReneSola currently owns over 187 MW of rooftop projects in operation, which are concentrated in a handful of eastern provinces of China with attractive development environments. As of December 31, 2017, the Company had over 28 MW of rooftop projects under construction and anticipates owning approximately 350-400 MW of rooftop projects in China by the end of 2018.

 

Operating Assets Capacity (MW)
China DG 187.3
- Zhejiang& Shanghai 66.7
- Anhui 29.6
- Henan 57.9
- Jiangsu 8.6
- Hebei 17.1
- Shandong 7.4
Romania 15.4
United Kingdom 9.3
Total 212.0

 

As of December 31, 2017, the Company currently has 4.6 MW of completed projects for sale.

 

Completed Projects for Sale Capacity (MW)
Turkey 4.6
Total 4.6

 

Project Pipeline

 

As of December 31, 2017, the Company had a pipeline of over 1.1 GW of projects in various stages, of which 546.5 MW are projects that are late-stage. 92.2 MW of these late-stage projects are under construction. Late-stage projects include (i) projects with the legal right to develop based on definitive agreements, including the projects held by project SPVs or joint ventured project SPVs whose controlling power can be purchased by us once the late stage is reached, and (ii) projects for which PPA or FiT has been arranged.

 

 

The following table sets forth the Company’s late-stage project pipeline by location:

 

Project Location Late-stage (MW) Under Construction (MW)
USA 188.4 30.9
Canada 18.8 8.6
Turkey 120.41 10.4
Poland 55.0 14.0
Hungary 38.4 -
China DG 125.5 28.3
Total 546.5 92.2

 

China

 

China: Late-stage Pipeline

Capacity

(MW)

Business Model
-Zhejiang & Shanghai 69.1 IPP
-Fujian & Guangdong 15.1 IPP
-Jiangsu 14.0 IPP
-Anhui 7.0 IPP
-Henan 5.1 IPP
-Shandong 15.2 IPP
China DG 125.5  

 

 

1  With the start of operation, ReneSola holds 50% of the economics in the projects, which are held for sale and expected to be sold in the normal course upon connection or shortly thereafter.

 

 

 

 

 

 

 

 

 

United States

 

In the U.S, the Company has a late-stage pipeline of 188.4 MW, 30.9 MW of which are under construction and are expected to be connected to the grid in the second quarter of 2018.

 

US: Late-stage Pipeline Location

Capacity

(MW)

PPA/FiT Term

Start

Date

COD Business Model
NC-North NC        6.8 PPA 15 Years 2017 Q3 2018 Q1 Project Development
RP-NC NC      24.1 PPA 15 Years 2017 Q3 2018 Q2 Project Development
Utah UT      10.7 PPA 20 Years 2018 Q2 2018 Q4 Project Development
RP-MN MN      37.5 In Progress 25 Years 2018 Q2 2018 Q4 – 2019 Q1 Project Development
New York NY        7.7 In Progress TBD 2018 Q2 2018 Q4 Project Development
RP-CA CA       13.6 Partial 20 Years 2018 Q3 2019 Project Development
Oregon OR       23.0 In Progress TBD 2019 2019 Project Development
Alpine TX       65.0 In Progress TBD 2019 2019 Project Development
Total      188.4          

 

Canada

 

In Canada, the Company has a late-stage pipeline of 18.8 MW projects, 8.6 MW of which are under construction and are expected to be connected to the grid in the third quarter of 2018. These 8.6 MW projects are eligible for Canada’s FiT3 Scheme.

 

Canada: Late-stage Pipeline Location

Capacity

(MW)

PPA/FiT Term Start Date COD Business Model
FiT3 Ontario         8.6 FiT3 20 Years 2017 Q4 2018 Q3 Project Development
FiT4 Ontario       10.2 FiT4 20 Years 2018 2019 Project Development

 

 

Poland

 

In Poland, the Company has a late-stage pipeline of 55 MW projects, 14 MW of which are under construction and are expected to be connected to the grid in the second quarter of 2018. The rest of the 41 MW of projects are expected to be connected to the grid in late 2018.

 

 

Poland: Late-stage Pipeline Project Info

Capacity

(MW)

PPA/FiT Price ($/KWh) Term Start Date COD Business Model
Auction 2016 Dec 13 individual projects, 1MW each 13.0 FiT (CfD) 0.1150 15 Years 2017 Q2 2018 Q2 IPP
Auction 2017 Jun 42 individual projects, 1MW each 42.0 FiT (CfD) 0.1080-0.1100 15 Years

2018 Q2

(1MW is under construction)

2018 Q4 IPP
Total   55.0            

 

Turkey

 

In Turkey, the Company has a late-stage pipeline of 120.4 MW projects, 10.4 MW of which are under construction and are expected to be connected to the grid in the first half of 2018.

 

 

Turkey:

Late-stage Pipeline (Capacity MW)

Under construction

To be constructed

in 2018

FiT (USD/KWh) Term Business Model
120.4 10.4 110.0 0.1060-0.1330 10 Years Project Development

 

 

 

 

 

 

 

 

 

Other Geographies

 

 

Others: Late-stage Pipeline Project

Capacity

(MW)

PPA/FiT Price ($ / kwh) Term Start Date COD Business Model
Hungary Portfolio of “Micro PPs”, 0.5 MW each 38.4 FiT Over $0.124 25 Years 2018 Q2 2018 Q4 Project Development

 

 

 

Outlook

 

For the first quarter of 2018, the Company’s project business is expected to generate revenue in the range of $30 to $35 million and overall gross margin in the range of 15% to 20%. During the first quarter of 2018, the Company expects to connect 5 MW to 10 MW of DG projects in China, and to monetize 5 MW projects in international markets.

 

For 2018, the Company expects to generate revenue in the range of $130 to $140 million with overall gross margin in the range of 20 to 25%. The Company intends to connect 150 MW to 200 MW of DG projects in China, and to monetize 50 MW to 70 MW projects in international markets. 

 

 

Conference Call Information

 

ReneSola's management will host an earnings conference call on April 25, 2018 at 8:30 a.m. U.S. Eastern Time (8:30 p.m. China Time).

 

Dial-in details for the earnings conference call are as follows:

 

  Phone Number Toll-Free Number
United States +1 8456750437 +1 8665194004
Hong Kong +852 30186771 +852 800906601
Mainland China

+86 8008190121

+86 4006208038

 
Other International +65 67135090  

 

 

Please dial in 10 minutes before the call is scheduled to begin and provide the passcode to join the call. The passcode is 7074737.

 

A replay of the conference call may be accessed by phone at the following numbers until May 3, 2018. To access the replay, please again reference the conference passcode 7074737.

 

  Phone Number Toll-Free Number
United States +1 6462543697 +1 8554525696
Hong Kong +852 30512780 +852 800963117
Mainland China

+86 8008700206

+86 4006022065

 
Other International +61 281990299  

 

Additionally, a live and archived webcast of the conference call will be available on the Investor Relations section of ReneSola's website at http://www.renesolapower.com.

 

 

 

 

 

 

 

 

 

About ReneSola

 

Founded in 2005, and listed on the New York Stock Exchange in 2008, ReneSola (NYSE: SOL) is an international leading brand of solar project developer and operator. Leveraging its global presence and solid experience in the industry, ReneSola is well positioned to develop green energy projects with attractive return around the world. For more information, please visit www.renesolapower.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," "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:

 

In China:

 

ReneSola Ltd

Mr. Johnny Pan

+86 (21) 6280-9180 x131

ir@renesolapower.com

 

The Blueshirt Group Asia

Mr. Gary Dvorchak, CFA

+86 (138) 1079-1480

gary@blueshirtgroup.com

 

In the United States:

 

The Blueshirt Group

Mr. Ralph Fong

+1 (415) 489-2195

ralph@blueshirtgroup.com