PR Newswire
SHANGHAI, March 28, 2017
SHANGHAI, March 28, 2017 /PRNewswire/ -- ReneSola Ltd ("ReneSola" or the "Company") (www.renesola.com) (NYSE: SOL), a leading fully-integrated solar project developer and provider of energy efficient technology products, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2016.
Fourth Quarter 2016 Highlights
| Q4 2016 | Q/Q Change | Y/Y Change |
Revenue | $232.1 | +24.1% | -21.7% |
Gross Profit | $5.0 | -73.7% | -89.5% |
Operating Loss | ($21.8) | N/A | N/A |
Net Loss | ($25.5) | N/A | N/A |
Full Year 2016 Highlights
| 2016 | 2015 | Y/Y Change |
Revenue | $929.8 | $1,282.0 | -27.5% |
Gross Profit | $109.5 | $187.9 | -41.7% |
Operating Income/(Loss) | ($15.1) | $29.3 | N/A |
Net Loss | ($34.7) | ($5.1) | N/A |
Mr. Xianshou Li, ReneSola's Chief Executive Officer, commented, "Overall business conditions in the quarter were mixed, with solid execution in downstream project sales, strong top-line sequential growth in LED distribution business and in-line revenue performance, offset by lower-than-expected gross margin. While the overall market environment was challenging in 2016, we have been executing our strategy to shift our business focus from manufacturing business to downstream project development business since the second half of 2015. I am excited about the progress we are making. We expect downstream project sales to pick up in the second quarter of 2017 due to the growth in pipeline as well as our solid execution in project monetization. While some of our end markets can be volatile and will continue to face challenges amidst opportunities, we will remain focused on our long-term objectives."
Li continued, "We strived to effectively manage our working capital and improve balance sheet, which led to promising results, such as the improvement in days of account receivables and inventory turnover in the fourth quarter. We also reduced our total borrowing by $75 million and expect to pay down more debt in the quarters ahead. As we look to 2017, we remain positive on our downstream strategy and are excited about the business opportunities ahead of us."
Fourth Quarter 2016 Financial Results
Revenue of $232.1 million was up 24.1% q/q but down 21.7% y/y and was within the guidance of $220 million to $240 million. The decline in the year-over-year revenue reflected lower ASP and lower shipments to external customers.
Gross profit of $5.0 million was down 73.7% q/q and 89.5% y/y. Gross margin declined to 2.1% from 10.1% in Q3 2016 and from 16.0% in Q4 2015. The sequential margin decline was primarily due to lower wafer and module ASPs. Gross margin in Q4 2016 was below the guidance of high-single digits.
Operating expenses were $26.8 million, representing 11.5% of revenue, down from $30.7 million in Q3 2016 and $30.5 million in Q4 2015. Sales and marketing expenses were $7.3 million, down from $11.5 million in Q3 2016 as we reversed certain warranty expense to reflect the declining module ASP. During the quarter, we made impairment of long-lived assets of $4.6 million associated with our monocrystalline wafer equipment.
Operating loss was $21.8 million, compared to operating loss of $11.9 million in Q3 2016 and operating income of $16.9 million in Q4 2015.
Non-operating expenses of $0.2 million include net interest expense of $7.1 million, partially offset by gain on derivative of $2.0 million and foreign exchange gains of $4.9 million.
Net loss was $25.5 million, compared to net loss of $20.5 million in Q3 2016 and net income of $6.7 million in the prior-year period. Loss per ADS was $1.26[1].
[1] The Company executed a ratio change for its American Depositary Receipt ("ADR") program effective on February 10, 2017. As a result, the number of the Company's shares represented by each ADS was changed from two (2) shares to ten (10) shares. |
Balance Sheet, Liquidity and Capital Resources
The Company had cash and cash equivalents (including restricted cash) of $133.2 million as of December 31, 2016, compared to $139.4 million at the end of Q3 2016. Total borrowings were $624.3 million, decreasing by $74.7 million from $699.0 million as of September 30, 2016. The Company utilized reduced working capital needs to pay down short-term debt, thus continuing to fulfill its long-term strategy of reducing debt.
Full Year 2016 Financial Results
Revenue of $929.8 million was down 27.5% y/y.
Gross profit of $109.5 million was down 41.7% y/y. Gross margin decreased to 11.8% from 14.7% in 2015.
Operating expenses were $124.6 million, or 13.4% of revenue, compared to $158.6 million in 2015.
Operating loss was $15.1 million, compared to operating income of $29.3 million in 2015.
Non-operating expenses of $17.3 million include net interest expense of $31.6 million, partially offset by foreign exchange gain of $8.9 million, gain on derivative of $4.6 million and change in fair value of warrant derivative liabilities of $0.6 million in 2016.
Net loss was $34.7 million, which compares to net loss of $5.1 million in 2015. Net loss per ADS was $1.72[2].
[2] The Company executed a ratio change for its American Depositary Receipt ("ADR") program effective on February 10, 2017. As a result, the number of the Company's shares represented by each ADS was changed from two (2) shares to ten (10) shares. |
Fourth Quarter Operating Highlights
The Company focused on developing, operating and selling high-quality solar power projects. Our business activities are centered on building a pipeline of distributed generation and utility-scale projects in attractive locations worldwide. In the fourth quarter, the Company continued to monetize its existing pipelines as part of its development cycle.
Project Sales
The Company recognized revenue from six utility-scale projects in the United Kingdom sold in the fourth quarter. These projects had approximately 26.0 MW of generating capacity. Additionally, the Company sold rooftop projects of 2.0 MW in China's domestic distributed generation market in the quarter.
Project Sales | Location | Size (MW) |
Carlam | UK | 5.0 |
Carlam | UK | 5.0 |
Kinmel | UK | 5.0 |
Kinmel | UK | 5.0 |
Rhewl | UK | 3.0 |
Rhewl | UK | 3.0 |
DG | China | 2.0 |
Project Pipeline
As of March 20, 2017, the Company had a pipeline of over 1 GW of projects in various stages, of which 707 MW were projects that are "shovel-ready". The shovel-ready projects include (i) projects that are overseas and that Renesola has the legal right to develop based on definitive agreements, and (ii) projects in China that have been filed with National Development and Reform Commission. The Company identified a number of opportunities in China's domestic distributed generation market, and now has 391.9 MW of such projects in the shovel-ready stage in its pipeline. The Company continues to focus on developed markets which are expected to have stable returns and healthy cash flow.
The following table sets forth our shovel-ready projects pipeline by location:
Project Location | Shovel-ready (MW) |
USA | 108 |
UK | 14.3 Werbung Mehr Nachrichten zur ReneSola Ltd. ADR Aktie kostenlos abonnieren
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