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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 March 2016

 

Commission File Number: 001-33911

 


_______________________

 

RENESOLA LTD
_______________________

 

No. 8 Baoqun Road, YaoZhuang
Jiashan, Zhejiang 314117
People’s Republic of China
(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 o

 

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): o

 

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): o

 

 

 

 

Incorporation by Reference

 

This Form 6-K is being incorporated by reference into the Registrant’s Registration Statement on Form F-3 (No. 333-189650), initially filed with the Securities and Exchange Commission on June 28, 2013 and as amended on August 7, 2013 and September 6, 2013, and declared effective on September 9, 2013.

 

 

 

 

Resignation of Chief Financial Officer

 

Interim Chief Financial Officer Appointed

 

ReneSola Ltd (“ReneSola” or the “Company”) reported on October 27, 2015 that it has accepted Mr. Daniel Lee’s notice of resignation as the Company’s Chief Financial Officer. Mr. Lee will depart after the notice period. Ms. Maggie Ma, the Company’s Vice President of Financial Control, will serve as the interim Chief Financial Officer, after Mr. Lee’s departure.

 

 

 

 

Maggie Ma as Official Chief Financial Officer

 

ReneSola Ltd (“ReneSola” or the “Company”) reported that it has appointed Maggie Ma, currently Interim Chief Financial Officer, to serve as Chief Financial Officer, effective April 1, 2016.

 

 

 

 

Changes to Board of Directors and Board Committees

 

ReneSola Ltd (“ReneSola” or the “Company”) reported the appointments of Ms. Julia Xu and Mr. Weiguo Zhou as independent directors of the Company, effective March 8, 2016. The Company’s current director Mr. Yuncai Wu and independent director Mr. Jing Wang are stepping down from the Company’s Board of Directors.

 

Ms. Julia Xu is the Founder and Managing Director of Oravida, a New Zealand-based group specializing in the branding and promotion of New Zealand’s premium food products primarily for the Chinese market. Prior to establishing Oravida in New Zealand, Ms. Xu was the Chief Financial Officer of ReneSola between April 2010 and June 2011. Ms. Xu has extensive financial markets experience, including earlier roles at Deutsche Bank Hong Kong, Bankers Trust and Lehman Brothers.

 

Mr. Weiguo Zhou is the Managing Partner of Silicon Valley Investment Management Partners, a China-based partnership specializing in investment in information technology and renewable energy area. Mr. Zhou was a Partner of Vangoo Capital Partners, a venture capital firm specializing in investment in early to pre-IPO stage China-based companies, between April 2012 and June 2013. Mr. Zhou has extensive capital markets experience in Asia and held various senior positions in major investment banks, including Executive Director at Goldman Sachs Gaohua Beijing, Vice President at Credit Suisse Beijing and Hong Kong, between August 2007 and April 2012. Prior to that, Mr. Zhou worked at Deutsche Bank’s Tokyo and Hong Kong offices for more than seven years.

 

Both Ms. Xu and Mr. Zhou satisfy the independence requirements under Rule 10A-3 under the Securities Exchange Act of 1934, as amended, and Section 303A of the Corporate Governance Standards rules of the NYSE Listed Company Manual.

 

The departing directors Mr. Yuncai Wu and Mr. Jing Wang both joined the Board before the Company’s initial public offering. Mr. Yuncai Wu has been a director of the Company since March 2005. Mr. Jing Wang has been an independent director of the Company since June 2006. Mr. Wu and Mr. Wang are stepping down from their Board positions to focus on their respective personal and other business interests and commitments.

 

Considering these director changes, the Company is also announcing changes to the composition of Board and Board committees as follows:

 

·Chief Executive Officer and director Mr. Xianshou Li will serve as chairman of the Board of Directors;
·Independent director Mr. Tan Wee Seng will serve as chairman of the Audit Committee and will step down from his position as a member of the Compensation Committee. Mr. Tan will continue to serve as a member of the Nominating and Corporate Governance Committee;
·Independent director Mr. Martin Bloom will serve as chairman of the Compensation Committee as well as a member of the Audit Committee, and will step down from his positions as chairman of the Audit Committee and a member of the Nominating and Corporate Governance Committee;
·Independent director Ms. Julia Xu will serve as chairman of the Nominating and Corporate Governance Committee and a member of the Audit Committee and the Compensation Committee; and
·Independent director Mr. Weiguo Zhou will serve as a member of the Compensation Committee and the Nominating and Corporate Governance Committee.

 

After giving effect to the above changes, the composition of our Board and Board committees will be as follows:

 

  Board Audit Committee Compensation Committee Nominating and Corporate Governance Committee
Xianshou Li Chairman      
Martin Bloom Independent Director Member Chair  
Tan Wee Seng Independent Director Chair   Member
Julia Xu Independent Director Member Member Chair
Weiguo Zhou Independent Director   Member Member

 

 

 

 

Fourth Quarter and Full Year 2015 Results

 

ReneSola Ltd (“ReneSola” or the “Company”) reported its unaudited financial results for the fourth quarter and full year ended December 31, 2015.

 

Fourth Quarter 2015 Highlights

 

  Q4 2015 Q/Q Change Y/Y Change
Revenue $296.4 -19.5% -23.4%
Gross Profit $47.5 -20.0% -7.3%
Operating Income $16.9 +48.3% N/A
Net Income $6.7 -22.6% N/A

 

·Revenue of $296.4 million exceeded management guidance range of $275-$295 million
·Sold 18.0 MW of projects, project pipeline at 641 MW
·Total external solar module shipments were 373.2 MW
·Operating expense control drives strong operating profit growth
·Operating margin expanded to 5.7% from 3.1% in Q3 2015 and -0.6% in Q4 2014
·Total debt reduced by $16.8 million compared to Q3 2015

 

Full Year 2015 Highlights

 

  2015 2014 Y/Y Change
Revenue $1,282.0 $1,561.5 -17.9%
Gross Profit $187.9 $209.3 -10.2%
Operating Income $29.3 $8.2 +256.6%
Net Loss ($5.1) ($33.6) N/A

 

·Revenue of $1.28 billion down 18% from $1.56 billion in 2014
·Sold 72.8 MW of projects
·Total external solar module shipments were 1.6 GW
·Gross margin increased to 14.7% from 13.4% in 2014
·Operating income grew 257% to $29.3 million from $8.2 million in 2014
·Net loss attributable to holders of ordinary shares narrowed significantly to $5.1 million from $33.6 million in 2014

 

Fourth Quarter 2015 Financial Results

 

Revenue of $296.4 million was down 19.5% q/q and 23.4% y/y and slightly exceeded guidance of $275-$295 million. The revenue decline reflects lower ASP and lower shipments to external customers.

 

Gross profit of $47.5 million was down 20.0% q/q and 7.3% y/y. Gross margin expanded to 16.0% when compared to the fourth quarter of 2014, but was down slightly sequentially. The margin decline in the quarter was attributable to the cost associated with the annual maintenance in our polysilicon plant, partially offset by lower production cost and the above-corporate-average gross margin generated from our project sales in the quarter. Gross margin in Q4 2015 was below guidance of 17-18% as a result of the change in the timing of the annual maintenance in our polysilicon plant which was moved to Q4 2015 from Q1 2016.

 

Operating expenses of $30.5 million were 10.3% of revenue, down from 13.0% in Q3 of 2015 and from 13.8% in Q4 of 2014.

 

Operating income was $16.9 million, compared to operating income of $11.4 million in Q3 of 2015 and operating loss of $2.2 million in Q4 of 2014. Operating margin expanded sequentially to 5.7% from 3.1% in Q3 of 2015.

 

 

 

 

Non-operating expenses of $9.2 million include net interest expense of $9.8 million and loss on derivative of $1.2 million, offset by foreign exchange gains of $2.1 million.

 

Net income was $6.7 million, which compares to a net income of $8.6 million in Q3 of 2015 and a net loss of $8.1 million in the prior-year period. Earnings per ADS were $0.07.

 

Balance Sheet, Liquidity and Capital Resources

 

ReneSola continued to closely manage working capital. The Company had cash and equivalents (including restricted cash) of $178 million as of year-end. During the quarter, the Company used operating cash flow to reduce total debt by $16.8 million, to $734 million. The Company had approximately $26.1 million in convertible bonds outstanding as of December 31, but repurchased $20.5 million more subsequent to the end of the quarter. Note that the holders of the remaining $5.6 million of convertible bonds can exercise the put options through expiration before March 14, 2016.

 

Full Year 2015 Financial Results

 

Revenue of $1.28 billion was down 17.9% y/y.

 

Gross profit of $187.9 million was down 10.2% y/y. Gross margin expanded to 14.7% from 13.4% in 2014.

 

Operating expenses were $158.6 million, or 12.4% of revenue, compared to $201.1 million, or 12.9% in 2014.

 

Operating income was $29.3 million, or 2.3% of revenue, compared to $8.2 million, or 0.5% in 2014.

 

Non-operating expenses of $33.7 million include net interest expense of $40.5 million, foreign exchange loss of $2.1 million and loss on derivative of $6.0 million offset by gains on repurchase of convertible bonds of $13.7 million in 2015.

 

Net loss was $5.1 million, which compares to net loss of $33.6 million in 2014. Net loss per ADS was $0.05.

 

Fourth Quarter Operating Highlights

 

Since disclosing its strategic shift to project development at the start of 2015, the Company has focused its efforts on developing, operating and selling high-quality solar power projects. Activity is centered on building a pipeline of distributed generation and utility-scale projects in attractive geographies worldwide. In the fourth quarter the Company continued to execute on the monetization phase of the development cycle.

 

Project Sales

 

The Company recognized revenue of $33.8 million from the sale of solar power projects. The revenue was comprised of new sales in the quarter of three projects representing 18.0 MW of generating capacity. The sales generated gross margins above the Company average.

 

Project Sales Location Size (MW)
Membury UK 16.5
Tochigi Projects- 2 Tochigi Japan 1.5

 

 

 

 

Operating Assets

 

The company owns and operates four solar power-producing projects it developed earlier in the decade. The Company considers the operating projects to be economically attractive, because they produce a steady stream of high margin recurring revenue. Currently the Company is holding its operating assets for eventual sale, since it is pursuing a build-operate-transfer model. The Company is currently negotiating the sale of its two projects in Bulgaria, and expects to reach final agreement in the near future.

 

IPP Assets Location Size (MW)
Nove  Eco Bulgaria 5.0
MG Solar Bulgaria 4.7
Lucas EST Romania 6.0
Ecosfer Energy Romania 9.4

 

Project Pipeline

 

The company currently has 641 MW of projects in various stages of development. The geographic distribution of projects is outlined in the table below.

 

Project Location Size (MW) Status
USA                   103[1] Development pipeline
UK                 111 54MW under construction
Japan                   31 29MW under construction
France                      4 Development pipeline
Thailand                   65 Development pipeline
Poland                 140 Development pipeline
Canada                   32 5MW under construction
Turkey 20 Development pipeline
Spain 75 Development pipeline
Egypt 60 Development pipeline
Total 641  

 

Modules and Wafers

 

The Company continues to fully utilize its capacity by providing high quality products with lower cost to select customers. The Company considers its competitive advantages to be improving conversion efficiency and supply chain management.

 

During the fourth quarter, total solar module shipments were 373.2 MW, representing a decrease of 8.0% from Q3 2015. Total wafer shipments were 270.3 MW, down 20.9% q/q and up 5.6% y/y.

 

In 2015, total solar module shipments were 1.60 GW, representing a decrease of 18.9% from 2014. Total wafer shipments were 1.09 GW, up 28.7% y/y.

 

LED

During the fourth quarter, ReneSola’s LED business reached revenue of $4.9 million, up from $3.6 million in Q3 2015, and delivered gross margin of over 30%.

 

The energy efficiency market is a very large and growing market, and LED lighting is a critical element. A key strategic focus of the Company is to grow its share of the high-growth LED market by expanding its world-wide distribution channels.

 

Safe Harbor Statement

 

Certain statement in this Current Report on Form 6-K may contain 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.

 

 

 

 

1 Of the total U.S. pipeline, 88 megawatts are currently subject to a dispute with our joint venture partner, Pristine Sun, LLC. The relevant parties intend to engage in mediation at the end of March 2016 in an attempt to amicably resolve the dispute.

 

 

 

 

 

 RENESOLA LTD

 Unaudited Consolidated Balance Sheets

 (US dollars in thousands) 

 

   Dec 31,   Sep 30,   Dec 31, 
   2015   2015   2014 
 ASSETS               
 Current assets:               
 Cash and cash equivalents   38,045    86,489    99,848 
 Restricted cash   140,338    146,533    121,862 
 Accounts receivable, net of allowances for doubtful accounts   161,166    128,143    125,743 
 Inventories   193,171    198,857    357,361 
 Advances to suppliers-current   18,480    37,889    27,494 
 Amounts due from related parties   111    118    452 
 Value added tax recoverable   24,525    13,310    30,514 
 Prepaid income tax   3,609    1,814    1,247 
 Prepaid expenses and other current assets   27,770    31,284    44,252 
 Project assets   20,214    23,345    37,040 
 Deferred convertible notes issue costs-current   35    76    661 
 Derivative assets   56    224    1,688 
 Assets held-for-sale   4,241    -    - 
 Deferred tax assets-current, net   5,989    4,504    11,368 
 Total current assets   637,750    672,586    859,531 
                
 Property, plant and equipment, net   630,462    667,377    750,298 
 Prepaid land use right, net   37,240    38,923    39,574 
 Deferred tax assets-non-current, net   10,238    15,699    8,462 
 Deferred convertible notes issue costs-non-current   -    -    138 
 Advances for purchases of property, plant and equipment   382    677    1,756 
 Deferred project costs   20,874    20,874    - 
 Other long-lived assets   9,373    9,747    9,249 
 Total assets   1,346,319    1,425,883    1,669,008 
                
 LIABILITIES AND SHAREHOLDERS' EQUITY               
                
 Current liabilities:               
 Convertible bond payable-current   26,145    26,145    - 
 Short-term borrowings   668,788    685,311    654,675 
 Accounts payable   300,176    321,239    461,499 
 Advances from customers-current   28,101    58,218    84,412 
 Amounts due to related parties   2,677    2,716    7,570 
 Other current liabilities   77,237    90,786    126,623 
 Income tax payable   130    128    123 
 Derivative liabilities   30    -    - 
 Warrant liability   578    263    1,890 
 Total current liabilities   1,103,862    1,184,806    1,336,792 
                
 Convertible notes payable-non-current   -    -    94,599 
 Long-term borrowings   38,777    39,008    43,452 
 Advances from customers-non-current        -    936 
 Deferred revenue   32,376    30,541    - 
 Warranty   36,023    37,159    31,778 
 Deferred subsidies and other   23,242    23,904    25,347 
 Other long-term liabilities   105    149    946 
 Total liabilities   1,234,385    1,315,567    1,533,851 
                
 Shareholders' equity               
   Common shares   477,965    478,527    476,766 
   Additional paid-in capital   8,339    7,516    7,512 
   Accumulated loss   (435,277)   (441,933)   (430,202)
   Accumulated other comprehensive income   60,907    66,206    81,080 
 Total equity attribute to ReneSola Ltd   111,934    110,316    135,156 
 Total  shareholders' equity   111,934    110,316    135,156 
                
 Total liabilities and shareholders' equity   1,346,319    1,425,883    1,669,008 

 

 

 

 

 

 

  

RENESOLA LTD

 Unaudited Consolidated Statements of Income

(US dollar in thousands, except ADS and share data)

 

 

                     
   Three Months Ended   Twelve Months Ended 
   Dec 31, 2015   Sep 30, 2015   Dec 31, 2014   Dec 31, 2015   Dec 31, 2014 
                     
Net revenues   296,388    368,239    386,968    1,282,031    1,561,497 
Cost of revenues   (248,917)   (308,901)   (335,733)   (1,094,157)   (1,352,214)
Gross profit   47,471    59,338    51,235    187,874    209,283 
GP%   16.0%   16.1%   13.2%   14.7%   13.4%
                          
Operating (expenses) income:                         
Sales and marketing   (12,465)   (19,861)   (23,338)   (72,295)   (93,067)
General and administrative   (15,211)   (14,825)   (16,051)   (59,290)   (67,294)
Research and development   (9,518)   (9,803)   (13,571)   (43,905)   (52,575)
Other operating income   6,651    (3,436)   (440)   16,920    11,870 
Total operating expenses   (30,543)   (47,925)   (53,400)   (158,570)   (201,066)
                          
Income (loss) from operations   16,928    11,413    (2,165)   29,304    8,218 
    5.7%   3.1%   -0.6%   2.3%   0.5%
Non-operating (expenses) income:                         
Interest income   544    656    1,172    2,875    5,010 
Interest expense   (10,352)   (11,047)   (12,273)   (43,418)   (49,016)
Foreign exchange gains (losses)   2,056    5,695    (13,501)   (2,138)   (27,009)
Gains (losses) on derivatives, net   (1,159)   (620)   4,359    (6,031)   6,058 
Investment gain on disposal of subsidiaries   -    -    4,895    -    8,253 
Gains on repurchase of convertible bonds   -    1,891    7,048    13,694    7,048 
Fair value change of warrant liability   (315)   788    4,672    1,314    7,455 
                          
Income (loss) before income tax, noncontrolling interests   7,702    8,776    (5,793)   (4,400)   (33,984)
                          
Income tax (expense) benefit   (1,046)   (179)   (2,262)   (675)   350 
Net income (loss)   6,656    8,597    (8,055)   (5,075)   (33,634)
                          
Less: Net income (loss) attributed to noncontrolling interests   -    -    -    -    (4)
Net income (loss) attributed to holders of ordinary shares   6,656    8,597    (8,055)   (5,075)   (33,630)
                          
                          
Earnings per share                         
  Basic   0.03    0.04    (0.04)   (0.02)   (0.17)
  Diluted   0.03    0.04    (0.04)   (0.02)   (0.17)
                          
Earnings per ADS                         
  Basic   0.07    0.08    (0.08)   (0.05)   (0.33)
  Diluted   0.07    0.08    (0.08)   (0.05)   (0.33)
                          
Weighted average number of shares used in computing loss per share                         
  Basic   203,137,831    204,658,446    203,777,464    204,085,041    203,550,049 
  Diluted   203,137,831    204,658,446    203,777,464    204,085,041    203,550,049 
                          

 

   Three Months ended  

 

Twelve Months Ended

 
   Dec 31, 2015   Sep 30, 2015   Dec 31, 2014   Dec 31, 2015   Dec 31, 2014 
Net income (loss)   6,656    8,597    (8,055)   (5,075)   (33,634)
Other comprehensive income (loss)                         
Foreign exchange translation adjustment   (5,299)   (13,834)   (3,872)   (20,173)   (2,534)
Other comprehensive income (loss)   (5,299)   (13,834)   (3,872)   (20,173)   (2,534)
                          
Comprehensive income (loss)   1,357    (5,237)   (11,927)   (25,248)   (36,168)
Less:comprehensive loss attributable to non-controlling interest   -    -    -    -    (4)
Comprehensive income (loss) attributable to ReneSola   1,357    (5,237)   (11,927)   (25,248)   (36,164)

 

 

 

 

 

 

RENESOLA LTD

Unaudited Consolidated Statements of Cash Flow

(US dollar in thousands)

 

 

 

   For the year ended December 31, 
   2015   2014 
         
Operating activities:          
Net loss   (5,075)   (33,634)
Adjustment to reconcile net loss to net cash provided by (used in) operating activity:          
  Inventory write-down   620    808 
  Depreciation and amortization   90,113    90,224 
  Amortization of deferred convertible bond issuances costs and premium   765    933 
  Allowance of doubtful receivables, advance to suppliers and prepayment for purchases of property, plant and equipment   (1,794)   5,710 
  Loss on derivatives   6,031    (6,058)
  Fair value change of warrant liability   (1,313)   (7,455)
  Gain from settlement of certain payables   (9,126)     
  Gain from advances from customers          
  Share-based compensation   1,527    2,240 
  Loss on disposal of long-lived assets   308    1,486 
  Gain on disposal of land use right   -    (64)
  Impairment of goodwill         
  Impairment of Intangible assets          
  Impairment of  long-lived assets   4,350    - 
  Reversal of firm purchase commitment          
  Gain on disposal of  subsidiaries        (8,253)
 Gain on CB repurchase   (13,693)   (7,048)
           
Changes in assets and liabilities:          
  Accounts receivable   (58,763)   45,610 
  Inventories   121,765    (19,210)
  Project assets and deferred project cost   20,655    (33,856)
  Advances to suppliers   8,283    (8,238)
  Amounts due from related parties   (4,433)   (1,508)
  Value added tax recoverable   4,279    (2,371)
  Prepaid expenses and other current assets   15,169    40,319 
  Prepaid land use rights, net   695      
  Proceeds from disposal of land use right   -    513 
  Deferred project costs          
  Accounts payable   (153,057)   (174,894)
  Advances from customers   (58,666)   (15,231)
  Income tax payable   (2,424)   (3,795)
  Other  current liabilities   (2,951)   9,224 
  Deferred revenue   32,376      
  Other long-term liabilities   (1,728)   (2,874)
 Other non-current assets   -    - 
  Other long-term assets   -    (159)
  Accrued warranty cost   5,759    8,044 
  Deferred taxes assets   2,538    (2,151)
  Provision for litigation          
Net cash provided by (used in) operating activities   2,210    (121,688)
           
Investing activities:          
  Purchases of property, plant and equipment   (14,438)   (51,813)
  Advances for purchases of property, plant and equipment   (2,383)   (2,699)
  Cash received from government subsidy   -    12,218 
  Proceeds from disposal of property, plant and equipment   5,751    93 
  Changes in restricted cash   (24,504)   134,584 
  Net cash received (paid) on settlement of  derivatives   (4,371)   4,398 
  Purchases of investment securities        - 
  Proceeds from disposal of subsidiaries   (83)   18,680 
Net  cash provided by (used in) investing activities   (40,028)   115,461 
           
Financing activities:          
  Proceeds from bank borrowings   1,100,033    1,063,769 
  Proceeds from issuance of common shares   -    - 
  Proceeds from related parties   -    4,000 
  Repayment of bank borrowings   (1,056,643)   (1,045,904)
  Proceeds from exercise of stock options   641    993 
 Paid for CB repurchase   (54,377)   (9,810)
Cash paid for ADS/s repurchase   (812)   - 
Net cash provided  by (used in) financing activities   (11,158)   13,048 
           
Effect of exchange rate changes   (12,827)   6,254 
           
Net increase (decrease) in cash and cash equivalents   (61,803)   13,075 
Cash and cash equivalents, beginning of year   99,848    86,773 
Cash and cash equivalents, end of year   38,045    99,848 

 

 

 

 

 

 

 

 

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: March 8, 2016