View:
Download DOC
Download PDF
Download XLS

 

 

 

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 2022

 

Commission File Number: 001-33911

 

 

 

RENESOLA LTD

 

 

 

3rd floor, 850 Canal St

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 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

 

 

 

 

 

 

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: March 24, 2022

 

 

 

 

Exhibit Index

 

Exhibit No.   Description
Exhibit 99.1   Press Release
     
Exhibit 99.2   2021 Fourth Quarter and Full Year Financial Results

 

 

 

 

Exhibit 99.1

 

 

ReneSola Power Announces Fourth Quarter and Full Year 2021 Financial Results

 

-- Earnings per ADS of $0.10 up 77% y/y

-- Project development pipeline of 2.2 GW, up 120% y/y

- Strengthened capital position with $254 million cash and cash equivalents

 

Stamford, CT, March 23, 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 fourth quarter and full year ended December 31, 2021. ReneSola Power's fourth quarter and full year 2021 financial results and management commentary can be found by accessing the Company's shareholder letter on the quarterly results page of the Investor Relations section of ReneSola Power's website at: http://ir.renesolapower.com.

 

ReneSola Power will hold a conference call today to discuss results.

 

Conference Call Details

 

ReneSola Power will hold a conference call today, March 23, 2022 at 4:30 p.m. U.S. Eastern Time (4:30 a.m. China Standard Time on Thursday, March 24, 2022) to discuss financial results.

 

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: http://apac.directeventreg.com/registration/event/3360748

 

A replay of the conference call may be accessed by phone at the following numbers until March 31, 2022. To access the replay, please reference the conference ID 3360748.

 

  Phone Number Toll-Free Number
United States +1 (646) 254-3697 +1 (855) 452-5696
Hong Kong +852 3051-2780 +852 8009-63117
Mainland China +86 (400) 820-9703
+86 (400) 820-9035		  
Other International +61 (2) 8199-0299  

 

A webcast of the conference call will be available on the ReneSola Power website at http://ir.renesolapower.com.

 

About ReneSola Power

 

ReneSola Power (NYSE: SOL) is a leading global solar project developer and operator. The Company focuses on solar power project development, construction management and project financing services. With local professional teams in more than 10 countries around the world, the business is spread across a number of regions where the solar power project markets are growing rapidly and can sustain that growth due to improved clarity around government policies. The Company's strategy is to pursue high-margin project development opportunities in these profitable and growing markets; specifically, in the U.S. and Europe, where the Company has a market-leading position in several geographies, including Poland, Hungary, Minnesota and New York. For more information, please visit www.renesolapower.com.

 

 

 

 

 

For investor and media inquiries, please contact:

 

In the United States:

 

ReneSola Ltd

Mr. Adam Krop

+1 (347) 577-9055 x115

IR.USA@renesolapower.com

 

The Blueshirt Group

Mr. Gary Dvorchak, CFA

+1 (323) 240-5796

gary@blueshirtgroup.com

 

 

 

 

Exhibit 99.2

 

 

Fellow Shareholders,

 

2021 was another extraordinary year for ReneSola Power. Amid the global pandemic, we kept executing and progressing our mission to become a leading global solar project developer by concentrating on high-quality and high-return projects in our core markets. I am extremely proud of what we have accomplished over the past several years since transitioning the company to focus solely on the project development business in late 2017. In 2021, we grew our project pipeline to a record 2.2 GWs and achieved record profitability of $6.9 million GAAP net income and $14.7 million non-GAAP income, respectively. Moreover, we significantly strengthened our balance sheet, which should position us well to take advantage of accelerating industry tailwinds over the coming years.

 

Now let me summarize our key accomplishments in 2021, which was another extraordinary year for us in terms of our financial performance as well as operational execution:

 

·We returned our business to growth with full-year revenue up 8% year-over-year to $79.7 million and GAAP net income per ADS up 77% to $0.10 per ADS from $0.06 per ADS in 2020. Non-GAAP net income per ADS was up 180% to $0.21 per ADS from $0.08 per ADS. In addition, we significantly improved gross margins to 39.4% in 2021 vs. 22.7% in 2020.

 

·We more than doubled our project development business’ mid-to-late stage project pipeline from 1 GW to 2.2 GW, above our original growth target for 2.0 GW. This growth came from all the main regions that we focus on, particularly the U.S. and Europe.

 

·We sold a total of 128 MW of solar projects in 2021. We sold multiple projects in the U.S., Poland, Spain, and Hungary. These transactions demonstrate our ability to optimize our solar assets through strategic sales, which enables us to generate cash flow, realize profits and further strengthen our balance sheet. Sales included 12.3 MW of DG projects in Hungary, 75 MW of DG projects in Poland, 28.8 MW of community solar projects in the U.S., and 12 MW of DG projects in Spain.

 

·In Q4 2021, we repurchased approximately $18 million or approximately 3 million ADS shares or 4% of our total American Depository Shares (“ADS”) outstanding. We believe this share repurchase demonstrates the confidence of our board and management team in the strength of our business and the compelling growth opportunities in front of us.

 

·We significantly strengthened our financial position and balance sheet, as we raised $290 million in a follow-on equity offering in January 2021 and reduced debt throughout the year. The strengthened capital position will be a critical strategic advantage as we accelerate our growth plans to be ready to seize the significant opportunity before us as countries accelerate their renewable energy infrastructure plans.

 

As we look forward, the solar industry is experiencing unprecedented growth and opportunities as the crisis in Ukraine has awakened a worldwide desire and sense of urgency to achieve energy independence, particularly through renewable energy. We are already seeing signs of this acceleration in Europe, our largest market. As an example, on Feb 28th, Germany announced its decision to rapidly accelerate the expansion of wind and solar power with the goal to generate almost all of the country’s electricity from renewable sources by 2035. Across Europe, many countries are announcing plans similar to Germany's. Further, on March 9, the European Commission announced that it will simplify renewable permitting as part of a new strategy aimed at increasing the European Union’s energy independence while ending its reliance on Russian gas before 2030.

 

 

 

 

 

The U.S., our second largest market is also expected to grow rapidly in the coming years both in utility scale projects and community solar programs. As an example, recently the U.S. Department of Energy announced plans to enable enough community solar projects to power 5 million homes by 2025. This initiative would increase current capacity by an additional 700%.

 

With the significant strong demand for solar energy, we believe we are well positioned to capitalize on this opportunity given our deep expertise in developing and operating solar projects, extensive network of industry partnerships throughout Europe, well capitalized balance sheet, and unmatched track record in closing financing transactions, and profitably monetizing projects.

 

With that overview, we will now review the details of our full-year and fourth quarter operating and financial performance.

 

2021 Financial Highlights: Significant improvement in margins and profitability driven by growth in higher margin project development business

 

Full Year 2021

●Revenue increased 8% y/y to $79.7 million from $73.5 million
●High margin Project Development segment revenue increased 23% y/y to $61.1 million and now represented 76.7% of revenue, up from 67.1% in 2020
●GAAP gross margin improved to 39.4% from 22.7%
●GAAP net income increased to $6.9 million in 2021 from $2.8 million in 2020
●Non-GAAP net income nearly quadrupled to $14.7 million from $3.7 million

 

(in $ millions)  2021   2020   Y/Y
Change		 
Revenue  $79.7   $73.5    +8%
GAAP gross profit  $31.4   $16.7    +88%
GAAP operating income  $12.7   $6.8    +87%
Non-GAAP operating income  $20.0   $10.0    +99%
EBITDA  $17.7   $14.9    +19%
Adjusted EBITDA  $25.9   $16.4    +58%
GAAP net income attributed to ReneSola Power  $6.9   $2.8    +147%
Non-GAAP net income attributed to ReneSola Power  $14.7   $3.7    +292%

 

 

 

 

 

Revenue was composed as follows:

 

Segment  2021
Revenue
(US$'000)		   % of Total
Revenue		 
Project Development  $61,126    77%
IPP  $17,965    22%
Others  $571    1%
Total  $79,662    100%

 

“IPP” consists of sale of electricity in China and U.S.

“Other” refers to operations and maintenance.

 

Revenue breakdown by regions:

 

Region  2021
Revenue
(US $’000)		   % of total
Revenue		 
Europe   48,865    62%
North America   13,895    17%
China   16,902    21%
Total   79,662    100%

 

Q4’21 Financial Highlights: Robust year-over-year growth and cash flow

 

Q4 2021

●Revenue grew 47% sequentially to $22.8 million, slightly below the midpoint of our guidance
●GAAP gross margin was 31.7% below our guidance range of 36% to 40% due to a delayed project sale, which is now scheduled to close in first half of 2022
●GAAP net loss for Q4’21 was $1.6 million loss as a result of several non-cash items
●Non-GAAP net income grew 47% sequentially to $2.5 million from $1.7 million
●$5.5 million in free cash flow versus negative $9.5 million in Q4’20

 

(in $ millions)  Q4’21   Q3’21   Q/Q
Change		 
GAAP Revenue  $22.8   $15.5    +47%
GAAP gross profit  $7.2   $6.1    +19%
GAAP operating income (loss)  ($1.4)  $2.7    -153%
Non-GAAP operating income  $3.5   $3.2    +10%
EBITDA  $0.7   $3.6    -81%
Adjusted EBITDA  $5.3   $4.5    +17%
GAAP net income (loss) attributed to ReneSola Power  ($1.6)  $0.7    -322%
Non-GAAP net income attributed to ReneSola Power  $2.5   $1.7    +47%

 

Revenue was composed as follows:

 

Segment  Q4’21
Revenue
(US$'000)		   % of Total
Revenue		 
Project Development  $19,160    84%
IPP  $3,554    15%
Others  $102    1%
Total  $22,816    100%

 

“IPP” consists of sale of electricity in China and the U.S.

“Other” refers to operations and maintenance.

 

 

 

 

 

Revenue breakdown by regions:

 

Region  Q4’21
Revenue
(US $’000)		   % of Total
Revenue		 
Europe   16,496    72%
North America   2,909    13%
China   3,411    15%
Total   22,816    100%

 

Outperformed Original Pipeline Growth Goal

 

In the beginning of 2021, we set a goal to grow our mid-to-late-stage pipeline to over 2 GW before the end of the year. Due to superb execution in the face of many challenges resulting from the global pandemic, we exceeded our original target and ended the quarter with a high-quality project pipeline1 of approximately 2.2 GW, with about 15 MW under construction. In Q4 we sold 37 MW of solar projects in Poland, 12 MW in Spain, 4 MW in Hungary, and 4 MW in the U.S.

 

The following table details our mid-to-late stage project pipeline by location:

 

Project Location  Mid-to-late stage (MW) 
U.S.   728 
Poland   594 
Spain   286 
U.K.   214 
Germany   37 
France   100 
Hungary   52 
Italy   57 
China (IPP)   114 
Total   2,182 

 

In 2022, we expect to build on our strong pipeline growth momentum and close the year at 3 GWs with a significant portion of the growth coming from Europe as a result of the favorable policy support. We target to grow the Company’s mid-to-late stage pipeline to 5 GWs by the end of 2024 with a significant portion of the growth coming from Europe.

 

 

1 Mid-to-late stage project pipeline includes those with the legal right to develop based on definitive agreements, including those held by project Special Purpose Vehicles (“SPVs”) or joint-venture project SPVs whose controlling power belongs to ReneSola Power.

 

 

 

 

 

 

Detailed Review of Pipeline by Region

 

Our performance is strong across most regions of the world, as reflected in our pipeline.

 

United States

 

Our mid-to-late-stage projects total 728 MW, of which 76 MW are community solar projects in Minnesota, Maine, and New York. Additionally, we have projects under development in Florida, Pennsylvania, Illinois, and California. Meanwhile, we operate 24 MW of utility projects in North Carolina.

 

U.S.A.   Location   Capacity (MW)   Project Type   Status   Expected NTP/Sale   Business Model
Minnesota   MN   6   Community Solar   Under Development   2022   NTP Sale
New York   NY   170   Community+Utility   Under Development   2022   NTP Sale
Florida   FL   100   Utility Scale   Under Development   2022/2023   NTP Sale
Maine   ME   10   DG & Community Solar   Under Development   2022   NTP Sale
Welcome Solar   PA   70   Utility Scale PV+Storage   Under Development   2022   NTP Sale
Gibson Solar   CA   35   Utility PV+Storage   Under Development   2022/2023   NTP Sale
Illinois   IL   50   Utility PV+Storage   Under Development   2023/2024   NTP Sale
Virginia   VA   7   Community Solar   Under Development   2023/2024   NTP Sale
California   CA   280   Utility PV+Storage   Under Development   2024/2025   NTP Sale
    Total   728                

 

Poland

 

In Q4 2021, we closed 37 MW of solar projects in Poland to Obton, a leading solar international investment company based in Denmark. The portfolio comprised 37 solar utility projects across Poland with capacity of 1 MW each for 33 MW and a 4 MW project and are expected to be grid-connected within the next year. The projects will be sold at the "Ready to Build" (RTB) stage. Upon closing of the sale, ReneSola Power will be responsible for EPC management, project financing, and final delivery of the projects to Obton at the COD stage. At quarter-end, in Poland, we had ~594 MW of projects in our mid-to-late stage pipeline.

 

Poland   Project   Capacity
(MW)		   Project Type   Status   Expected RTB/Sale   Business Model
Auction 2020 and 2021   Solar farms   75   Ground-mounted   Under Construction   2022 + 2023 COD   RTB Sale + EPC
Current Pipeline   Including smaller scale projects   ~519   Ground-mounted   Under Development   2022/2024 RTB   RTB Sale
    Total   ~594                

 

 

 

 

 

Spain

 

We have a mid-to-late stage pipeline of 286 MW of ground-mounted projects located in various regions across Spain.

 

Spain   Location   Capacity (MW)   Project Type   Status   Expected RTB/Sale   Business Model
Castillo (three projects)   Alicante   24   Ground-mounted   Under Development   2022   RTB Sale
Project Portfolio   Spain   262   Ground-mounted   Under Development   2023/2024   RTB Sale
    Total   286                

 

U.K.

 

We have a mid-to-late stage pipeline of 214 MW of ground-mounted projects under development.

 

U.K.   Capacity (MW)   Project Type   Status   Expected RTB/Sale   Business Model
UK- Novergy   190   Solar only Ground-mounted   Under Development   2022/2023   RTB Sale
UK- Innova   24   Solar-plus-storage Ground-mounted   Under Development   2022   RTB Sale
Total   214                

 

Germany

 

We have secured a late-stage pipeline of 37 MW of ground-mounted projects now under development.

 

Germany   Capacity (MW)   Project Type   Status   Expected RTB/Sale   Business Model
Project Portfolios -Kentzlin   12   Ground-mounted   Under Development   2022   RTB Sale
Project Portfolios -Germany   25   Ground-mounted   Under Development   2023   RTB Sale
Total   37                

 

France

 

In France, we have a project pipeline of 100 MW, all of which are ground-mounted projects.

 

France   Location   Capacity (MW)   Project Type   Status   Expected RTB/Sale   Business Model
Project Portfolios   France   82   Ground mounted   Under Development   2022/2023   RTB Sale
Project Portfolios   France   18   Ground mounted   Under Development   2022   Development Services
Total       100                

 

Hungary

 

In Hungary, we invest in small-scale DG projects. Our late-stage pipeline has a total capacity of 52 MW.

 

Hungary   Location   Capacity (MW)   Project Type   Status   Expected RTB/Sale   Business Model
Portfolio with FIT   Hungary   4   Ground- mounted   Ready-to-Build   2022   Build-Transfer
Portfolio for Corporate PPAs   Hungary   48   Ground- mounted   Under Development   2022/2023   Build-Transfer
    Total   52                

 

 

 

 

 

Italy

 

In Italy, we partnered with two local developers and started to build our pipeline in this important market.

 

Italy   Location   Capacity (MW)   Project Type   Status   Expected RTB/Sale   Business Model
Opal 1 - Lancia   Molise, Italy   7   Ground- mounted   Under Development   2023/2024   RTB Sale
OpalB - CIRO   Cutro, Calabria   38   Ground- mounted   Under Development   2023/2024   RTB Sale
Russotto   Sicilia   7   Ground- mounted   Under Development   2023/2024   RTB Sale
Caggegi   Augusta   5   Ground- mounted   Under Development   2023/2024   RTB Sale
    Total   57                

 

Solid Operating Asset Portfolio with Attractive Long-term Growth Plan

 

We currently own ~180 MW of operating projects, of which we operate ~156 MW of rooftop projects in China, and ~24 MW in the U.S. In Q4 2021, we connected about 7 MW of newly developed projects in China. The China rooftop solar projects are concentrated in attractive eastern provinces with Commercial and Industrial (C&I) off-takers.

 

Operating Assets  Capacity (MW) 
China DG  156 
- Zhejiang  42 
- Henan  46 
- Anhui  31 
- Hebei  17 
- Jiangsu  12 
- Shandong  3 
- Fujian  5 
United States  24 
Total  180 

 

Looking ahead, our new asset development pipeline of 114 MW is located in various provinces across China. All projects in China are intended to be owned and operated by us as IPP assets. During 2021, we significantly slowed our pace of development, because target projects could not meet our IRR goals due to high material costs and other burdens. We intend to build our asset portfolio in China but will do so in a disciplined manner that ensures we meet our profit goals.

 

China   Location   Capacity
(MW)		   Project Type   Status   Expected COD   Business Model
China DG   Jiangsu   58   Net Metering   Under Development   2022   IPP Business
China DG   Zhejiang   24   Net Metering   Under Development   2022   IPP Business
China DG   Shandong   13   Net Metering   Under Development   2022   IPP Business
China DG   Anhui   5   Net Metering   Under Development   2022   IPP Business
China DG   Others   14   Net Metering   Under Development   2022   IPP Business
    Total   114                

 

 

 

 

 

Q4 2021 Financial Results:

 

All figures refer to the fourth quarter of 2021, unless stated otherwise.

 

Revenue

 

Revenue was $22.8 million, up sequentially and up year-over-year. Revenue from Project Development was largely driven by project sales in Poland, Spain, Hungry and the U.S. Energy sales from IPP assets came from 34 million KWh generated by our rooftop DG projects in China and the U.S.

 

Gross Profit and Gross Margin

 

GAAP gross profit increased 265% year-over-year to $7.2 million in the fourth quarter of 2021 and represented 31.7% as a percentage of revenue. Non-GAAP gross profit was $7.8 million and represented 33.4% as a percentage of revenue. Gross margin was below our prior guidance range mainly as a result of delayed project sales, which are now scheduled for the first half of 2022.

 

Operating Expense and Operating Income (loss)

 

Operating expenses were $8.7 million, up sequentially and up year-over-year. Sales and marketing was a $0.2 million benefit in the quarter as a result of reversals of sales commission accruals that timed out from 2020. General and administrative expenses were $7.9 million largely due to two non-cash items including: (1) $2.3 million of accounts receivables write-off related to our previous manufacturing business, (2) $1.8 million non-cash stock award to our key employees as part of our stock incentive program to support our continued growth. Other operating expense was $1 million primarily due to a $0.4 million impairment for IPP project in China, $0.2 million write-off from a fire accident at one of our IPP project sites and $0.2 million project cancellation cost.

 

As a result of these non-cash expenses, in the Q4 2021, we incurred a GAAP operating loss of $1.4 million, compared to $2.7 million operating income in Q3 2021 and $0.5 million operating income in Q4 2020. Excluding these items, our Q4 2021 non-GAAP operating income was $3.5 million, compared to non-GAAP operating income of $3.2 million in Q3 2021 and $0.2 million in Q4 2020.

 

Net Income (loss)

 

GAAP net loss attributed to ReneSola Power common shareholders was $1.6 million, compared to $0.7 million net income in Q3 2021 and $2.0 million net income in Q4 2020. Net loss per ADS was $0.02, compared to net income per ADS of $0.01 in Q3 2021 and $0.04 in Q4 2020.

 

Non-GAAP net income attributed to ReneSola Power was $2.5 million, compared to $1.7 million in Q3 2021 and $0.4 million net loss in Q4 2020. Non-GAAP net income per ADS was $0.04, compared to $0.02 in Q3 2021 and $0.01 Non-GAAP net loss per ADS in Q4 2020.

 

Cash Flow

 

Cash flow from operating activities was $8.5 million; cash flow used in investing activities was $3.0 million, and cash flow used in financing activities was $23.5 million largely due to repurchase of $18.5 million of our stock in Q4 2021.

 

 

 

 

 

Financial Position

 

All figures are as of quarter-end, December 31, 2021.

 

Cash and cash equivalents at the end of Q4 2021 were $254.1 million compared to $275.4 million at the end of Q3 2021. Cash per ADS was $3.65. Book value equals $5.81 per ADS. This compares to our current ADS price of $6.83, as of the date of this letter.

 

Total current assets were $329.5 million compared to $351.2 million at the end of Q3 2021. Our to debt-to-asset ratio decreased to 10% compared to 11% Q3 2021

 

As of the date of this letter, we still have $30 million authorization remaining in our share repurchase program.

 

Outlook for 2022

 

For 2022, we expect our revenue growth to accelerate and for the full year to be in the range of $100 to $120 million. We anticipate our Q1 revenue will only be between $3 million to $4 million as the bulk of our project sales are scheduled to ramp beginning in Q2.

 

We expect our gross margin for the year to be between 20 – 25%. For net profit, we are targeting between $9 to $10 million for the full year, which is in line with our prior guidance of at least 30% growth.

 

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 their continued support and confidence in ReneSola Power.

 

Sincerely,

 

Yumin Liu Ke Chen
Chief Executive Officer Chief Financial Officer

 

 

 

 

 

Fourth Quarter and Full Year 2021 Earnings Results Conference Call

 

We will host a conference call today to discuss our fourth quarter and full year 2021 business and financial results. The call is scheduled to begin at 4:30 p.m. U.S. Eastern Time on Wednesday, March 23, 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: http://apac.directeventreg.com/registration/event/3360748

 

A replay of the conference call may be accessed by phone at the following numbers until March 31, 2022. To access the replay, please reference the conference ID 3360748.

 

  Phone Number Toll-Free Number
United States +1 (646) 254-3697 +1 (855) 452-5696
Hong Kong +852 3051-2780 +852 (800) 963117
Mainland China +86 (400) 820-9703
+86 (400) 820-9035		  
Other International +61 (2) 8199-0299  

 

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

 

The Blueshirt Group

Mr. Yujia Zhai, CPA

Yujia@blueshirtgroup.com

 

 

 

 

 

Appendix 1: Unaudited Consolidated Income Statement

 

RENESOLA LTD

Unaudited Consolidated Statements of Operations

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

 

Unaudited Consolidated Statements of Operations  Three Months Ended 
(US dollars in thousands, except ADS and share data)  December 31, 2021   September 30, 2021   December 31, 2020 
Net revenues   22,816    15,540    16,402 
Cost of revenues   (15,573)   (9,454)   (14,416)
Gross profit   7,243    6,086    1,986 
    31.7%        264.7%
Operating (expenses)/income:               
Sales and marketing   154    (48)   (154)
General and administrative   (7,855)   (3,399)   (8,790)
Other operating (expenses)/income   (982)   76    7,436 
Total operating expenses   (8,683)   (3,371)   (1,508)
                
Income(loss) from operations   (1,440)   2,715    478 
Non-operating (expenses)/income:               
Interest income   254    278    419 
Interest expense   (1,669)   (975)   (1,424)
Foreign exchange (losses)/gains   189    (694)   1,389 
Total non-operating (expenses)/income   (1,226)   (1,391)   384 
                
Income(loss) before income tax   (2,666)   1,324    862 
                
Income tax (expense)/benefit   (251)   (197)   19 
Income(loss),net of tax   (2,917)   1,127    881 
                
Less: Net income attributed to non-controlling interests   (1,341)   416    (1,094)
Net income(loss) attributed to ReneSola Ltd   (1,576)   711    1,975 
                
Income attributed to ReneSola Ltd per ADS               
Basic   (0.02)   0.01    0.04 
Diluted   (0.02)   0.01    0.04 
                
Weighted average number of ADS used in computing income/(loss) per ADS*               
Basic   69,496,550    69,760,475    53,333,944 
Diluted   69,496,550    70,433,809    53,956,012 

 

*Each American depositary shares (ADS) represents 10 common shares

 

 

 

 

 

Appendix 2: Unaudited Consolidated Balance Sheet

 

RENESOLA LTD

Unaudited Consolidated Balance Sheets

(US dollars in thousands)

 

Unaudited Consolidated Balance Sheets  December 31,   September 30,   December 31, 
(US dollars in thousands)  2021   2021   2020 
ASSETS               
Current assets:               
Cash and cash equivalents   254,066    275,388    40,593 
Restricted cash   317    456    83 
Accounts receivable, net of allowances for doubtful accounts   45,823    44,009    20,187 
Advances to suppliers, net   277    996    143 
Value added tax recoverable   4,600    4,289    3,652 
Prepaid expenses and other current assets   14,519    13,047    44,826 
Project assets current   9,882    13,044    24,992 
Assets hold for sales   -    -    2,271 
Total current assets   329,484    351,229    136,747 
                
Property, plant and equipment, net   125,646    121,763    119,943 
Deferred tax assets, net   776    768    1,184 
Project assets non-current   6,256    5,159    3,279 
Goodwill   1,023    1,023    1,023 
Operating lease right-of-use assets   16,945    20,494    23,246 
Finance lease right-of-use assets   24,558    25,037    25,556 
Other non-current assets   24,582    30,478    25,962 
Total assets   529,270    555,951    336,940 
LIABILITIES AND SHAREHOLDERS' EQUITY               
Current liabilities:               
Short-term borrowings   -    -    31,981 
Bond payable current   -    -    9,035 
Accounts payable   3,333    4,740    6,313 
Advances from customers   82    82    901 
Amounts due to related parties   9,531    7,944    7,657 
Other current liabilities   8,876    9,927    19,829 
Income tax payable   844    544    949 
Salary payable   340    319    266 
Liabilities held for sale   -    -    2,189 
Operating lease liabilities current   727    509    1,093 
Failed sale-lease back and finance lease liabilities current   11,367    12,299    8,097 
Total current liabilities   35,100    36,364    88,310 
                
Long-term borrowings   62    65    - 
Operating lease liabilities non-current   15,778    19,493    21,411 
Failed sale-lease back and finance lease liabilities non-current   29,917    31,669    43,963 
Total liabilities   80,857    87,591    153,684 
                
Shareholders' equity               
Common shares   847,379    847,426    574,500 
Additional paid-in capital   12,396    10,688    7,770 
Treasury stock   (18,446)   -    - 
Accumulated deficit   (432,705)   (431,127)   (439,567)
Accumulated other comprehensive loss   (4,618)   (4,066)   (3,570)
Total equity attributed to ReneSola Ltd   404,006    422,921    139,133 
Noncontrolling interest   44,407    45,439    44,123 
Totalshareholders' equity   448,413    468,360    183,256 
                
Total liabilities and shareholders' equity   529,270    555,951    336,940 

 

 

 

 

 

Appendix 3: Unaudited Consolidated Cash Flow Statement

 

RENESOLA LTD

Unaudited Consolidated Statements of Cash Flow

(US dollars in thousands)

 

Unaudited Consolidated Statements of Cash Flow  Three Months Ended 
(US dollars in thousands)  December 31, 2021   December 31, 2020 
Net cash provided by (used) in operating activities   8,510    (3,579)
           
Net cash used in investing activities   (2,982)   (3,712)
           
Net cash provided by (used in)financing activities   (23,471)   32,621 
           
Effect of exchange rate changes   (3,517)   (1,030)
Net increase in cash and cash equivalents and restricted cash   (21,460)   24,300 
Cash and cash equivalents and restricted cash, beginning ofthe period   275,843    16,394 
Cash and cash equivalents and restricted cash held for sale   -    (18)
Cash and cash equivalents and restricted cash, end of the period   254,383    40,676 

 

RENESOLA LTD

Unaudited Consolidated Statements of Cash Flow

(US dollars in thousands)

 

Unaudited Consolidated Statements of Cash Flow  For The Year Ended 
(US dollars in thousands)  December 31, 2021   December 31, 2020 
Net cash provided by (used) in operating activities   (6,416)   (10,035)
           
Net cash used in investing activities   19,388    (3,387)
           
Net cash provided by (used in)financing activities   204,878    30,177 
           
Effect of exchange rate changes   (4,143)   (722)
Net increase in cash and cash equivalents and restricted cash   213,707    16,033 
Cash and cash equivalents and restricted cash, beginning ofthe period   40,676    24,697 
Cash and cash equivalents and restricted cash held for sale        (54)
Cash and cash equivalents and restricted cash, end of the period   254,383    40,676 

 

 

 

 

 

Appendix 4

Use of Non-GAAP Financial Measures

 

To supplement ReneSola Power’s financial statements presented on a GAAP basis, ReneSola Power provides non-GAAP financial data as supplemental measures of its performance.

 

To provide investors with additional insight and allow for a more comprehensive understanding of the information used by management in its financial and decision-making surrounding pro-forma operations, we supplement our consolidated financial statements presented on a basis consistent with U.S. generally accepted accounting principles, or GAAP, with EBITDA, Adjusted EBITDA, non-GAAP net income/ (loss) attributed to ReneSola Power and non-GAAP EPS as non-GAAP financial measures of earnings.

 

• EBITDA represents net income before income tax expense (benefit), interest expense, depreciation and amortization.

 

• Adjusted EBITDA represents EBITDA plus discount of electricity subsidy in China, plus share-based compensation, plus bad debt provision, plus impairment of long-lived assets, plus loss/(gain) on disposal of assets, plus foreign exchange loss/(gain).

 

•Non-GAAP net income/ (loss) attributed to ReneSola Power represents GAAP net income/(loss) attributed to ReneSola Power plus discount of electricity subsidy in China, plus share-based compensation, plus bad debt provision, plus impairment of long-lived assets, plus loss/(gain) on disposal of assets, plus foreign exchange loss/(gain).

 

• Non-GAAP EPS represents Non-GAAP net income/ (loss) attributed to ReneSola Power divided by the number of fully diluted shares outstanding.

 

Our management uses EBITDA, Adjusted EBITDA, non-GAAP net income/ (loss) attributed to ReneSola Power and non-GAAP EPS as financial measures to evaluate the profitability and efficiency of our business model. We use these non-GAAP financial measures to access the strength of the underlying operations of our business. These adjustments, and the non-GAAP financial measures that are derived from them, provide supplemental information to analyze our operations between periods and over time.

 

We find these measures especially useful when reviewing pro-forma results of operations, which include large non-cash impairment of long-lived assets and loss on disposal of assets. Investors should consider our non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP.

 

 

 

 

 

Appendix 5

GAAP to Non-GAAP Unaudited Reconciliation (Part 1)

 

   Three Months Ended   Twelve Months Ended 
   December 31, 2021   September 30, 2021   December 31, 2020   December 31, 2021   December 31, 2020 
   (in thousands) 
Reconciliation of Revenue                         
GAAP Net revenue  $22,816   $15,540   $16,402   $79,662   $73,503 
Add: Discount of electricity subsidy in China   565    32    151    982    971 
Non-GAAP Net revenue  $23,381   $15,572   $16,553   $80,644   $74,474 
                          
GAAP Gross Margin                         
US. GAAP as reported  $7,243   $6,086   $1,986   $31,425   $16,686 
Add: Discount of electricity subsidy in China   565    32    151    982    971 
Non-GAAP Gross Margin  $7,808   $6,118   $2,137   $32,407   $17,657 
                          
Reconciliation of operating expenses                         
GAAP operating expenses  $(8,683)  $(3,371)  $(1,508)  $(18,773)  $(9,906)
Add: Discount of electricity subsidy in China   -    -    -    -    - 
Add: Share based compensation   1,677    404    106    2,627    369 
Add: Bad debt provision of receivables   2,314    -    6,674    2,314    7,021 
Add: Impairment of long-lived assets   360    -    339    360    1,432 
Add: Penalty of postponed property, plant and equipment payable   -    -    -    -    - 
Add: Loss on settlement of disputed Turkish receivables   -    -    -    -    - 
Add: Loss on OCI settlement   -    -    7,500    -    7,500 
Add: Penalty and warranty of EPC service   -    -    -    -    - 
Add: Cancellation of project assets   175    -         1,014      
Add: Gain from OCI credit   (428)             (428)     
Add: Loss on disposal of project assets   -    -    706    286    1,461 
Add: Loss on disposal of  property, plant and equipment   238    -    314    238    768 
Less: Gains on disposal of  property, plant and equipment   -    -    (16,032)   (66)   (16,278)
Non-GAAP operating expenses  $(4,347)  $(2,967)  $(1,901)  $(12,427)  $(7,633)

 

   Three months ended   Year ended 
   December 31, 2021   September 30, 2021   December 31, 2020   December 31, 2021   December 31, 2020 
Reconciliation of Operating Income                         
GAAP Operating Income  $(1,440)  $2,715   $478   $12,652   $6,780 
Add: Discount of electricity subsidy in China   565    32    151    982    971 
Add: Share based compensation   1,677    404    106    2,627    369 
Add: Bad debt provision of receivables   2,314    -    6,674    2,314    7,021 
Add: Impairment of long-lived assets   360    -    339    360    1,432 
Add: Penalty of postponed property, plant and equipment payable   -    -    -    -    - 
Add: Loss on settlement of disputed Turkish receivables   -    -    -    -    - 
Add: Loss on OCI settlement   -    -    7,500    -    7,500 
Add: Penalty and warranty of EPC service   -    -    -    -    - 
Add: Cancellation of project assets   175    -         1,014      
Add: Gain from OCI credit   (428)             (428)     
Add: Loss on disposal of project assets   -    -    706    286    1,461 
Add: Loss on disposal of  property, plant and equipment   238    -    314    238    768 
Less: Gains on disposal of  property, plant and equipment   -    -    (16,032)   (66)   (16,278)
Non-GAAP Operating Income  $3,461   $3,151   $236   $19,979   $10,024 

 

 

 

 

 

Appendix 5 continued…

 

GAAP to Non-GAAP Unaudited Reconciliation (Part 2)

 

   Three months ended   Year ended 
   December 31, 2021   September 30, 2021   December 31, 2020   December 31, 2021   December 31, 2020 
Reconciliation of Net income attributed to ReneSola Ltd                         
GAAP Net income attributed to ReneSola Ltd  $(1,576)  $711   $1,975   $6,862   $2,779 
Add: Discount of electricity subsidy in China   338    19    90    588    581 
Add: Share based compensation   1,677    404    106    2,627    369 
Add: Bad debt provision of receivables   2,214    -    6,548    2,214    6,895 
Add: Impairment of long-lived assets   216    -    203    216    1,223 
Add: Penalty of postponed property, plant and equipment payable   -    -    -    -    - 
Add: Loss on settlement of disputed Turkish receivables   -                     
Add: Loss on OCI settlement   -    -    7,500    -    7,500 
Add: Penalty and warranty of EPC service   -    -         -      
Add: Cancellation of project assets   175    -         1,014      
Add: Gain from OCI credit   (428)   -    -    (428)   - 
Add: Loss on disposal of project assets   -    -    706    286    1,461 
Add: Loss on disposal of  property, plant and equipment   142    -    188    142    460 
Less: Gains on disposal of  property, plant and equipment   -    -    (16,032)   (40)   (16,179)
Less: Interest income of discounted electricity subsidy in China   (78)   (138)   (265)   (550)   (571)
Add: Foreign exchange loss/(gain)   (189)   694    (1,389)   1,764    (769)
Non-GAAP Net income attributed to ReneSola Ltd  $2,491   $1,690   $(370)  $14,695   $3,749