ReneSola Ltd Announces Fourth Quarter and Full Year 2014 Results

Pubblicato su 06 mar 2015
ReneSola 
ReneSola Ltd today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2014.

Fourth Quarter 2014 Financial and Operating Highlights

- Total solar module shipments were 488.4MW, exceeding previous guidance and representing an increase of 5.7% from Q3 2014. Total solar wafer and module shipments in Q4 2014 were 744.3MW, representing an increase of 12.1% from 663.9MW in Q3 2014, and a decrease of 5.1% from 784.1MW in Q4 2013.

- Net revenues were US$387.0 million, representing an increase of 3.9% from US$372.5 million in Q3 2014, and a decrease of 11.8% from US$438.8 million in Q4 2013.

- Gross profit was US$51.2 million with a gross margin of 13.2%, compared to gross profit of US$57.1 million with a gross margin of 15.3% in Q3 2014, and gross profit of US$49.7 million with a gross margin of 11.3% in Q4 2013.

- Operating loss was US$2.2 million with an operating margin of negative 0.6%, compared to an operating income of US$8.5 million with an operating margin of 2.3% in Q3 2014, and an operating income of US$8.8 million with an operating margin of 2% in Q4 2013.

- Net loss attributable to holders of ordinary shares was US$8.1 million, representing basic and diluted loss per share of US$0.04 and basic and diluted loss per American depositary share ("ADS") of US$0.08.

- Cash and cash equivalents plus restricted cash totaled $221.7 million as of the end of Q4 2014, compared to US$196.7 million as of the end of Q3 2014, and US$348.9 million as of the end of Q4 2013.

- Net cash inflow from operating activities was US$48.8 million compared to net cash outflow from operating activities of US$10.7 million in Q3 2014, and net cash outflow from operating activities of US$29.5 million in Q4 2013.

Full Year 2014 Financial and Operating Highlights 

- Total solar module shipments were 1,970.3MW, representing an increase of 14.0% from 1,728.8MW for full year 2013. Total solar wafer and module shipments were 2,816.4MW, representing a decrease of 10.5% from 3,146.5MW for full year 2013.

- Net revenues were US$1,561.5 million, an increase of 2.8% from US$1,519.6 million in 2013.

- Gross profit was US$209.3 million with a gross margin of 13.4%, compared to a gross 2 profit of US$113.1 million with a gross margin of 7.4% in 2013.

- Operating income was US$8.2 million with an operating margin of 0.5%, compared to an operating loss of US$222.1 million with an operating margin of negative 14.6% in 2013.

- Net loss attributable to holders of ordinary shares was US$33.6 million, representing basic and diluted loss per share of US$0.17 and basic and diluted loss per ADS of US$0.33.

- Net cash outflow from operating activities was US$114.8 million, compared to net cash inflow from operating activities of US$118.6 million in 2013.

"In the fourth quarter of 2014, we exceeded our fourth quarter guidance for shipments and met our gross margin guidance despite continued challenges from the macro economy, including foreign exchange volatility. We also continued to implement our strategy of shifting the focus of our business to retail-oriented and commercial customers with bundled services and downstream projects," said Mr. Xianshou Li, ReneSola's chief executive officer. "Due to the flexible nature of our global manufacturing network, we were able to rebalance our geographic mix by reducing our exposure in euro-denominated markets and shifting towards dollar-based and other non-euro markets during the fourth quarter. Our customer base has increased to 2,546 as we provided more renewable energy products and services to smallersized customers, representing a client pool that we expect to yield additional cross-selling opportunities for our products and services."

Mr. Daniel K. Lee, ReneSola's chief financial officer, said, "In line with our prudent approach to business expansion, we continue to improve our financial metrics including enhancing our cash position and reducing our long-term liabilities. During the fourth quarter, we reduced our long-term debt and convertible notes by $13.2 million and $17.0 million, respectively. Also, our operating cash flow was positive during the fourth quarter. We will strive to further improve our financial position as we expand and diversify our business worldwide."

Fourth Quarter 2014 Results

Solar Wafer and Module Shipments


In Q4 2014, the Company exceeded its targets for module shipments and met its target for gross margin. The sequential increase in module shipments was mainly due to the Company's expansion into new international markets, such as India. The year-over-year decrease in wafer shipments reflects the Company's strategy of shifting away from lower-margined wafer business and towards the higher margined module business.3

Net Revenues and Gross Profit 


* Adjusted according to the Company's current accounting classification for warranty expense, which is recognized as a selling expense rather than as a cost of goods sold, as was done prior to Q1 2014. Before the adjustment, the gross profit for Q4 2013 was $47.4 million and the gross margin was 10.8%.
Net revenues increased quarter over quarter in line with the increase in module shipments.
The sequential decrease in the Company's gross margin was a result of a lower average selling price (ASP) of module, mainly due to appreciation of the US dollar especially against the euro, partially offset by a decrease in cost.

Operating Income (Loss)


* Adjusted according to the Company's current accounting classification for warranty expense, which is recognized as a selling expense rather than as a cost of goods sold, as was done prior to Q1 2014. Before the adjustment, the operating expense for Q4 2013 was $38.6 million, the operating income was $8.8 million and the operating margin was 2.0%.

During Q4, the Company's SG&A expense showed a slight sequential decrease due to improved cost control. The sequential increase in operating expenses was primarily due to an increase in administrative items gains during Q3 of 2014.

Foreign Exchange Gain (Loss)

In Q4 2014, the Company had a foreign exchange loss of US$13.5 million and recognized a US$4.4 million gain on derivatives. The foreign exchange loss was primarily due to the depreciation of the euro and yen against the U.S. dollar.

Change in Fair Value of Warrant Derivative Liabilities

The Company recognized a gain from a change in the fair value of warrant derivative liabilities of US$4.7 million in Q4 2014 primarily due to the decrease in the Company's stock price.

Other Gains (Loss)

During the fourth quarter of 2014, the Company recognized a gain of $7.0 million from the repurchase of convertible notes and an investment income of $4.9 million from the sale of a 37MW distributed generation project in China.4

Net Income (Loss) Attributable to Holders of Ordinary Shares


Liquidity and Capital Resources

Net cash inflow from operating activities was US$48.8 million in Q4 2014, compared to net cash outflow of US$10.7 million in Q3 2014.

Net cash and cash equivalents plus restricted cash totaled US$221.7 million as of December 31, 2014, compared to US$196.7 million as of September 30, 2014.

Total debt was US$698.1 million as of December 31, 2014, compared to US$748.8 million as of September 30, 2014, excluding US$94.6 million of convertible notes due March 15, 2018, unless repurchased or converted at an earlier date. Short-term borrowings were US$654.7 million at December 31, 2014, compared to US$692.2 million at September 30, 2014.

In Q4 2014, the Company repurchased a portion of its convertible notes. The Company might continue to repurchase its convertible bonds from time to time, subject to market conditions and other strategic considerations.

Full Year 2014 Results

Solar Wafer and Module Shipments


Module shipments increased in 2014 mainly due to the Company's expansion efforts in international markets. Wafer shipments declined in 2014 mainly due to a strategic shift towards the Company's higher-margin module business.

Net Revenues and Gross Profit (Loss)


* Adjusted according to the Company's current accounting classification for warranty expense, which is recognized as a selling expense rather than as a cost of goods sold, as was done prior to Q1 2014. Before the adjustment, the gross profit for full year 2013 was $103.3 million and the gross margin was 6.8%.

The year-over year increase in net revenues was in line with the increase in module shipments 5 and reduced shipments in the Company's wafer business. Gross margin increased to 13.4% in 2014 from 7.4% in 2013 mainly due to a higher module ASP and lower module cost, as well as a shift from the lower-margin wafer business to the higher-margin module business.

Operating Loss


* Adjusted according to the Company's current accounting classification for warranty expense, which is recognized as a selling expense rather than as a cost of goods sold, as was done prior to Q1 2014. Before the adjustment, the operating expense for 2013 was $324.7 million, the operating loss was $221.4 million and the operating margin was negative 14.6%.

The 39.9% year-over-year decline in operating expenses was mainly due to a long-lived asset impairment incurred in 2013 related to Sichuan polysilicon phase I plant. 

Change in Fair Value of Warrant Derivative Liabilities

The Company recognized a gain from a change in the fair value of warrant derivative liabilities of US$7.5 million in 2014.

Net Loss Attributable to Holders of Ordinary Shares


Liquidity and Capital Resources

Net cash outflow from operating activities was US$114.8 million in 2014, compared to net cash inflow of US$118.6 million in 2013.

Net cash and cash equivalents plus restricted cash totaled US$221.7 million as of the end of 2014, compared to US$348.9 million as of the end of 2013.

As of the end of 2014, total debt was US$698.1 million, compared to US$742.6 million as of the end of 2013, excluding US$94.6 million of convertible notes due March 15, 2018, unless repurchased or converted at an earlier date. As of the end of 2014, short-term borrowings were US$654.7 million, compared to US$673.1 million as of the end of 2013.

Polysilicon Update

The Company's total output of polysilicon for full year 2014 was 5,825 metric tons, with an output of 1,884 metric tons in Q4 2014. The Company's polysilicon factory is currently running at full capacity and is expected to be profitable and generate positive cash flow in 2015.6

Project Business Update

In Q4 2014, the Company completed the sale of 37MW in distributed generation projects in mainland China. The Company currently has a total of approximately 38.5MW in existing projects, including 25MW in utility-scale projects in Eastern Europe, and 13.5MW in the United Kingdom. All existing projects have been completed and connected to their respective grid.

The Company also has a total of approximately 57MW utilities scale projects under construction in the United Kingdom, and expected to be connected to grid before end of Q1.

The Company expects to sell all UK projects in the coming months. 

Business Highlights

Geographic Breakdown of Module Shipments


The significant increase in module shipments to the U.S. market and the decrease in Europe was a result of the comparatively strong U.S. solar market and the weakening euro against the U.S. dollar during Q4 of 2014. The increases in "other" markets were the result of the Company's overall international expansion, especially into emerging markets.

Research and Development

During Q4 2014, ReneSola continued to invest in the development of new technologies and to increase the efficiency of its current range of solar products.

Wafers and Modules

The Company successfully upgraded the processing technology of its A+++ wafer. While maintaining the same average efficiency of 17.8%, the wafer's processing cost was reduced by 4%.

The Company's 275W (60-Cell) and 330W (72-Cell) polycrystalline module has been completed and will enter mass production soon. The average power output of the Company's module products has been further improved: the lower-limit module product was upgraded to 255W (60-Cell) and 305W (72-Cell). The certification process is underway for the Company's double-glass module with 1500V maximum system voltage, which is expected to enter production soon.7

Inverter

The Company's new 300W micro inverter is now in trial production and undergoing onsite project testing. Related certifications have been obtained in several key markets in North America and Europe. The first batch of related products is expected to enter the market soon.

The Company continues to obtain applicable certification for its string inverters across several international markets: TLE series with VDE4105, VDE V 0126, AS4777, and G83 certifications are now eligible for sale in Germany, the United Kingdom, and Australia. TLA series with MEA and PEA credentials are available in Thailand. TLB U.S. series now feature AFCI functions.

The Company's innovative 5KW hybrid inverter has now received applicable certification and is in trial production.

LED

The Company recently launched its range of LED bulb products with plastic-coated aluminum material. The material compared to traditional aluminum heat dissipation bodies is more cost competitive with outstanding insulation performance.

The Company's LED lighting tubes include rotatable end cap designs for 1/2 aluminum and 1/2 plastic tubes, 1/3 aluminum and 2/3 plastic tube, full plastic tubes, and glass tubes, all of which are now available worldwide.

The Company continues to obtain certifications across different continents for its LED products, including LED bulbs and spotlights. The Company's first batch of LED lighting products was shipped to customers in January 2015, with additional shipments scheduled to start from March 2015.

For European and North American markets, the Company launched its LED High Bay featuring high brightness SMD chips. CB certification was obtained in late February 2015 for such product and the product will be available for order soon.

Recent Business Developments 

- In February 2015, the Company announced that its PV testing laboratory in Jiangsu, China has achieved Witness Testing Data Program certification from Underwriters Laboratories (UL), a globally renowned and independent safety science company.

- In December 2014, ReneSola announced the expansion of its North American operations into Canada and Mexico. The Company opened new offices and warehouse facilities in Mexico City, Mexico and Mississauga, Ontario in Canada.

- In September 2014, the Company announced its Residential Financing Program to serve the fast-growing U.S. residential solar and LED markets. The new financing program will equip the Company's network of installers with loan products to help them reach a wider customer base and secure more business.

- In September 2014, ReneSola announced a new partnership with Swiss inverter manufacturer, Sputnik Engineering AG, to distribute SolarMax solar inverters in Australia. The partnership is an extension of ReneSola's distribution agreement with 8 local distributors in North America. Australia will be the second country in the world where ReneSola will sell SolarMax's inverters directly to the Company's customers.

- In September 2014, the Company announced that it would provide 10MW of solar modules to Juwi India Renewable Energies Pvt. Ltd., a Bangalore-based engineering, procurement and construction firm that specializes in solar and wind energy plants. The modules will power a utility-scale project in Rajasthan to be developed by Atha Group, an India-based conglomerate with operations in mining, steel manufacturing, power, and renewable energy.

- In September 2014, ReneSola announced that it would develop a 13MW solar project in Dorset, England.

Outlook

For Q1 2015, the Company expects its net revenue to be in the range of US$360 million to US$380 million, and gross margin to be in the range of 14% to 16%.

For full year 2015, the Company expects its net revenue to be in the range of US$1.5 billion to US$1.6 billion.

For year 2015, the Company does not have any plans for internal capacity expansion.


source: ReneSola
Profili di ENF per aziende sudette in questo articolo

ReneSola (Componenti): https://it.enfsolar.com/renesola
ReneSola (Pannelli Fotovoltaici): https://it.enfsolar.com/renesola
ReneSola (Materiali): https://it.enfsolar.com/renesola
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