Exhibit 99.2
March 26, 2021
Dear Shareholders,
2020 was an extraordinary year, from the COVID-19
global pandemic to the presidential election in the U.S. The past year brought uncertainty, anxiety, and distress to people across the
globe. We saw how the challenges of dealing with the COVID-19 impacted our employees, our customers, and our communities.
Despite this challenging environment, 2020 saw
solid execution and operational excellence for ReneSola Power. We progressed in our mission to become a leading global solar project developer
by focusing on high-quality and high return projects in our core markets, the three best solar markets in the world: Europe, the United
States and China. We delivered strong results and ended the year in a solid financial position.
Let me review some of our key accomplishments
in 2020.
|
|
·
|
First, our financial performance was solid. We were profitable with EBITDA of $15.4 million, adjusted
EBITDA of $16.9 million, GAAP net income attributed to ReneSola Power of $3.3 million (or 7 cents per share) and non-GAAP net income1
attributed to ReneSola Power of $4.2 million (or 9 cents per share). Gross margin of 23.2% exceeded our expectations. As anticipated,
revenue was down due to the timing of project sales and a strategic shift from COD sales to NTP/RTB sales. The closing of sales of a 12.3MW
project in Hungary and a 12MW project in Spain were delayed into the first half of 2021. The Hungary sale was completed in March 2021,
and we are confident that the Spain sale will soon be completed.
|
|
|
·
|
Second, we strengthened our financial position and shored up our balance sheet through debt reduction
and equity issuance. We reduced total debt by nearly $7 million in 2020, an accomplishment considering the COVID-related macro challenges.
Additionally, we further strengthened the balance sheet, utilizing the strong stock market to raise capital.
|
|
|
o
|
From August through December, we implemented an “at-the-market” (ATM) equity offering
program. We sold about $5 million worth of our American Depositary Shares (ADS) in August, then sold another $10 million in December.
|
|
|
o
|
In September, we raised $5 million through a registered direct placement (RDP) of ADS.
|
|
|
o
|
In October, we raised another $5 million through RDP, and then in December, we raised additional $20 million
through RDP.
|
In total during 2020, we raised $45
million from the public market. The capital was and will be used to expand our solar project pipeline, penetrate the solar-plus-storage
market, for working capital, and for potential strategic M&A opportunities. We believe these capital infusions will enable us to execute
our long-term strategic growth plan as we further consolidate our transformation into an asset-light solar project developer.
|
|
·
|
Third, we expanded our reach across Europe through multiple joint ventures and partnerships in Germany,
the United Kingdom and Spain. The combined strengths of these joint ventures will create significant synergy and offer new opportunities
to grow our global pipeline. We created with Eiffel Investment Group a joint venture company, into which Eiffel will inject new capital
to fund our growth.
|
1
Please see Appendix 4 for a reconciliation of non-GAAP to GAAP figures.
|
|
·
|
Fourth, we acquired an energy storage business, including solar-plus-storage projects, from Nova Development
Management. This transaction increased our development pipeline by approximately 200 MW and added an experienced solar project development
team. The new team brings expertise in the development of U.S. utility scale projects, provides immediate access to battery storage, and
enables us to deliver a more complete set of solution packages to our customers. Additionally, the acquisition gives us access to utility
projects and development activities in several states, including Pennsylvania, California, New York, Maine, Illinois, and Arizona.
|
|
|
·
|
Fifth, we signed a PPA with California-based public electricity provider Valley Clean Energy (VCE).
The project will add 20 MW of solar power and 6.5 MW/26 MWh (4 hours) of battery energy storage. This marks a pivotal milestone
for ReneSola Power, as it is our first long-term power purchase agreement for a solar-plus-storage system that will provide significant
benefits to the local community.
|
|
|
·
|
Sixth, we sold a total of 86.1MW of solar projects in 2020. We sold multiple projects in the U.K.,
Poland, Romania, Hungary, the U.S. and China. 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 15.0 MW of DG
projects in Hungary, 11.0 MW of DG projects in Poland, 10.6 MW of community solar projects in the U.S., 7.0 MW in Canada, 15.4 MW in Romania,4.3
MW of rooftop projects in the U.K. and 22.8 MW in China.
|
|
|
·
|
Finally, we utilized our IPP assets to generate cash flow. We generated $23.5 million of electricity
sales via the 182.2 million KWh of electricity generated by our IPP projects in China Romania, the U.S. and the U.K. This translates to
128,823 metric tons of carbon reduction in 2020.
|
This expanding pipeline of business activity signals
increased demand for project development, and we remain optimistic about our multi-year growth prospects. In the rest of this letter,
we will describe in more detail our strong position today, and prospects for robust growth tomorrow.
Large Market Opportunity Supported
by Ambitious Policies
The global solar power project development business
is large and yet continues to grow. Industry market research estimates that by 2040, the share of renewables in the energy market will
increase to around 30% and globally will become the single largest source of power generation. Europe continues to lead the way in terms
of penetration of renewables. Renewable energy is expected to account for more than 50% of the European energy market by 2040. Europe,
the U.S. and China are expected to be the three key markets driving the growth of renewables in the next several years due to favorable
regulatory policies and incentives. In particular:
|
|
·
|
The European Commission unveiled the “European Green Deal”, a set of policy initiatives intended
to make Europe carbon neutral by 2050. This includes a proposal to toughen the EU's 2030 greenhouse gas emission reductions target. They
intend to reduce GHG to 50% of 1990 levels, a more aggressive target than the former 55% target.
|
|
|
·
|
In the U.S., the Biden administration intends to make the U.S. a 100% clean energy economy with net-zero
emissions by 2050. They also intend to decarbonize the U.S. power sector by 2035 by adopting renewable energy sources and technologies
that can be deployed at scale and compete with fossil fuels on cost.
|
|
|
·
|
In China, the Central Government initiated the policy to reduce the country's carbon dioxide emissions
by at least 65 percent from 2005 levels by 2030 and to achieve carbon neutrality by 2060.
|
With our focus on Europe, the U.S., and China,
we believe we are strategically positioned for growth. In Europe, we have major development activities across Poland, Hungary, Spain,
France, Germany, and the U.K. In the U.S., our late-stage projects include community solar projects in Minnesota, Maine, Pennsylvania,
and New York. Additionally, we have projects under development in Utah, Florida, Maine, and California, and we operate utility projects
in North Carolina. In China, our key geographic focus will be in the Yangtze River Delta area, which has attractive electricity tariffs
and is one of the major metropolitan areas designated to play a pivotal role in the country’s future economic growth. We intend
to expand our IPP assets by building 100 MW of projects in 2021.
Our Project Development business benefits from
an intense focus on small-scale projects in diverse jurisdictions with a high PPA/FiT price that generates attractive returns. As of December
31, 2020, our late-stage pipeline was 1.0 GW, up from 732 MW in the third quarter of 2020. We continue to focus on profitable markets,
including the U.S. and Europe, where we see tremendous growth opportunities with high-quality projects.
Importantly, we intend to add incremental project
pipeline in our core markets to reach 2GW by the end of 2021. We are confident that we can achieve this, because our teams around the
world are dedicated, skilled, and experienced…and are supported by the foundation of our strong balance sheet.
|
Pipeline Target
|
|
Capacity (MW)
|
|
|
Hungary
|
|
|
100.0
|
|
|
Poland
|
|
|
400.0
|
|
|
Spain
|
|
|
200.0
|
|
|
France
|
|
|
200.0
|
|
|
Germany and Italy
|
|
|
200.0
|
|
|
U.K.
|
|
|
200.0
|
|
|
USA
|
|
|
500.0
|
|
|
China
|
|
|
200.0
|
|
|
Total
|
|
|
2000.0
|
|
2020 Financial Highlights:
Solid Profitability and Strengthened Balance Sheet
|
|
|
2020
($ millions)
|
|
|
2019
($ millions)
|
|
|
Y/Y
Change
|
|
|
Revenue
|
|
$
|
73.9
|
|
|
$
|
119.1
|
|
|
|
-38
|
%
|
|
GAAP Gross Profit
|
|
$
|
17.2
|
|
|
$
|
34.2
|
|
|
|
-50
|
%
|
|
GAAP operating income (loss)
|
|
$
|
7.3
|
|
|
($
|
1.0
|
)
|
|
|
+$8.3
|
|
|
Non-GAAP operating income
|
|
$
|
10.5
|
|
|
$
|
26.4
|
|
|
|
-60
|
%
|
|
Adjusted EBITDA
|
|
$
|
16.9
|
|
|
$
|
33.6
|
|
|
|
-50
|
%
|
|
GAAP net income(loss) attributed to ReneSola Power
|
|
$
|
3.3
|
|
|
($
|
8.8
|
)
|
|
|
+$12.1
|
|
|
Non-GAAP net income attributed to ReneSola Power
|
|
$
|
4.2
|
|
|
$
|
14.1
|
|
|
|
-70
|
%
|
|
|
|
Q4’20
($ millions)
|
|
|
Q3’20
($ millions)
|
|
|
Q/Q
Change
|
|
|
Revenue
|
|
$
|
16.8
|
|
|
$
|
9.7
|
|
|
|
+72%
|
|
|
GAAP gross profit
|
|
$
|
2.5
|
|
|
$
|
5.9
|
|
|
|
-58
|
%
|
|
GAAP operating income
|
|
$
|
1.0
|
|
|
$
|
2.9
|
|
|
|
-67
|
%
|
|
Non-GAAP operating income
|
|
$
|
0.7
|
|
|
$
|
4.5
|
|
|
|
-84
|
%
|
|
Adjusted EBITDA
|
|
$
|
2.1
|
|
|
$
|
6.3
|
|
|
|
-66
|
%
|
|
GAAP net income attributed to ReneSola Power
|
|
$
|
2.5
|
|
|
$
|
2.1
|
|
|
|
+16%
|
|
|
Non-GAAP net income attributed to ReneSola Power
|
|
$
|
0.1
|
|
|
$
|
2.5
|
|
|
|
-96
|
%
|
Full Year 2020
|
|
·
|
Revenue decreased 38% to $73.9 million from $119.1 million in 2019;
|
|
|
o
|
$49.6 million from the Project Development business
|
|
|
o
|
$23.5 million from the IPP business, primarily from the sale of electricity in China,
|
|
|
o
|
$0.8 million from operations and maintenance
|
|
|
·
|
Gross margin was 23.2%, compared to 28.7% in 2019;
|
|
|
·
|
Net income attributed to ReneSola Power was $3.3 million, compared to net loss of $8.8 million in 2019;
|
|
|
·
|
Non-GAAP net income attributed to ReneSola Power was $4.2 million, down from $14.1 million in 2019;
|
|
|
·
|
Sold 15.0 MW of DG projects in Hungary and 11.0 MW of projects in Poland;
|
|
|
·
|
Sold 10.6 MW community solar projects in U.S. and 7.0 MW FiT projects in Canada;
|
|
|
·
|
Sold 15.4 MW ground-mounted projects in Romania and 4.3 MW of rooftop projects in the U.K.;
|
|
|
·
|
Our late-stage solar power project pipeline stood at approximately 1.0 GW, as of December 31, 2020.
|
|
|
·
|
Revenue breakdown by business segment:
|
Revenue Breakdown
(US$'000)
|
|
FY 2020
Revenue
|
|
|
% of total
revenue
|
|
|
Project Development
|
|
|
49,572
|
|
|
|
67.1
|
%
|
|
IPP
|
|
|
23,548
|
|
|
|
31.9
|
%
|
|
Others
|
|
|
795
|
|
|
|
1.1
|
%
|
|
Total
|
|
|
73,915
|
|
|
|
100.0
|
%
|
|
|
·
|
Revenue breakdown by three regions:
|
|
Region
|
|
Revenue
(US $’000)
|
|
|
% of total
revenue
|
|
|
Europe
|
|
|
37,000
|
|
|
|
50.1
|
%
|
|
North America
|
|
|
20,358
|
|
|
|
27.5
|
%
|
|
China
|
|
|
16,557
|
|
|
|
22.4
|
%
|
|
Total
|
|
|
73,915
|
|
|
|
100.0
|
%
|
Fourth Quarter 2020
|
|
·
|
Revenue was $16.8 million, up from $9.7 million in Q3 2020;
|
|
|
o
|
$12.3 million from the Project Development business
|
|
|
o
|
$4.3 million from the IPP business, primarily from the sale of electricity in China
|
|
|
o
|
$0.2 million from operations and maintenance
|
|
|
·
|
Gross margin was 14.7%, compared to 60.6% in Q3 2020 and 26.9% in Q4 2019;
|
|
|
·
|
Net income attributed to ReneSola Power was $2.5 million, compared to $2.1 million in Q3 2020 and net
loss of $10.9 million in Q4 2019;
|
|
|
·
|
Non-GAAP2 net income attributed
to ReneSola Power was $0.1 million, compared to $2.5 million in Q3 2020 and $4.3 million in Q4 2019;
|
|
|
·
|
Sold 11 MW of project rights in Poland, 15.4 MW of ground-mounted solar projects in Romania and 4.3 MW
of rooftop projects in the U.K.;
|
|
|
·
|
Connected 11.7 MW of DG projects in Hungary and 11.0 MW of DG projects in Poland.
|
|
|
·
|
Revenue and gross margin breakdown by business segment:
|
2 Reconciliations to U.S. generally accepted accounting principles
(“GAAP”) financial measures from non-GAAP financial measures are presented below under “Use of Non-GAAP Financial Measures”
in Appendix 4.
Revenue Breakdown
(US$'000)
|
|
Q4’20
Revenue
|
|
|
% of total
revenue
|
|
|
Project Development
|
|
|
12,295
|
|
|
|
73.1
|
%
|
|
IPP
|
|
|
4,288
|
|
|
|
25.5
|
%
|
|
Others
|
|
|
231
|
|
|
|
1.4
|
%
|
|
Total
|
|
|
16,814
|
|
|
|
100.0
|
%
|
Attractive Profit-Optimized
Project Pipeline
The development pipeline is strong, ending the
year with late-stage projects of approximately 1.0 GW, and about 6 MW under construction. We believe this pipeline portfolio is attractive
due to its broad geographic diversification.
Late-stage projects include 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 us.
The following table highlights our late-stage
project pipeline by location:
|
Project Location
|
|
Late-stage
(MW)
|
|
|
Under
Construction
(MW)
|
|
|
US
|
|
|
350.1
|
|
|
|
--
|
|
|
Poland
|
|
|
206.0
|
|
|
|
6.0
|
|
|
Hungary
|
|
|
49.2
|
|
|
|
--
|
|
|
France
|
|
|
100.0
|
|
|
|
--
|
|
|
Spain
|
|
|
95.0
|
|
|
|
--
|
|
|
Germany
|
|
|
50.0
|
|
|
|
--
|
|
|
U.K.
|
|
|
150.0
|
|
|
|
--
|
|
|
Total
|
|
|
1,000.3
|
|
|
|
6.0
|
|
Strong Global Performance and
Outlook
United States
Our late-stage projects total 350.1 MW, of which
~122MW are community solar projects in Minnesota, Maine, Pennsylvania, and New York. Additionally, we have projects under development
in Utah, Florida, Maine and California. Meanwhile, we operate 24.1 MW of utility projects in North Carolina.
|
US: Late-stage
Pipeline
|
|
Location
|
|
Capacity
(MW)
|
|
Project
Type
|
|
Status
|
|
Expected
COD
|
|
Business
Model
|
|
Utah
|
|
UT
|
|
10.5
|
|
DG
|
|
Under Development
|
|
2021/2022
|
|
Project Development
|
|
MN-VOS
|
|
MN
|
|
1.4
|
|
Community Solar
|
|
Under Development
|
|
2021
|
|
Project Development
|
|
MN-VOS-2
|
|
MN
|
|
8.4
|
|
Community Solar
|
|
Under Development
|
|
2021/2022
|
|
Project Development
|
|
New York
|
|
NY
|
|
22.4
|
|
Community Solar
|
|
Under Development
|
|
2021/2022
|
|
Project Development
|
|
Florida
|
|
FL
|
|
104
|
|
Utility Scale
|
|
Under Development
|
|
2022
|
|
Project Development
|
|
Maine
|
|
ME
|
|
19.9
|
|
DG & Community Solar
|
|
Under Development
|
|
2022/2023
|
|
Project Development
|
|
Pennsylvania
|
|
PA
|
|
70.0
|
|
DG & Community Solar
|
|
Under Development
|
|
2022/2023
|
|
Project Development
|
|
California
|
|
CA
|
|
26.5
|
|
DG &
Small-scale Utility Projects with Battery Storage
|
|
Under
Development
|
|
2022/2023
|
|
Project
Development
|
|
Acquisition
of Selected Assets
|
|
U.S.
|
|
about
87 MW
|
|
DG &
small-scale utility projects with battery storage
|
|
Under
Development
|
|
2021/2022
|
|
Project
Development
|
|
|
|
Total
|
|
350.1
|
|
|
|
|
|
|
|
|
Poland
Business momentum accelerated in recent months.
As of December 31, 2020, we had 206 MW of projects in our development pipeline.
|
Poland: Late-stage Pipeline
|
|
Project
|
|
Capacity
(MW)
|
|
Project Type
|
|
Status
|
|
Expected
COD
|
|
Business Model
|
|
Auction 2019 Dec
|
|
8 individual projects, 1MW each
|
|
8.0
|
|
Ground-mounted
|
|
Under Development
|
|
2021
|
|
Build-Transfer
|
|
Auction 2020 Q4
|
|
38 individual projects, 1MW each
|
|
38.0
|
|
Ground-mounted
|
|
Under Development
|
|
2021/2022
|
|
Build-Transfer
|
|
Auction 2021 Q4
|
|
40 individual projects, 1MW each
|
|
40.0
|
|
Ground-mounted
|
|
Under Development
|
|
2022/2023
|
|
Build-Transfer
|
|
Auction 2021 Q4
|
|
4 individual projects
|
|
120.0
|
|
Ground-mounted
|
|
Under Development
|
|
2022/2023
|
|
Build-Transfer
|
|
Total
|
|
|
|
206.0
|
|
|
|
|
|
|
|
|
Hungary
In Hungary, we invest in small-scale DG projects.
Our late-stage pipeline has multiple “micro projects,” with an average size of 0.5 MW per project, bringing total capacity
to 49.2 MW. These projects are under development.
|
Hungary: Late-stage Pipeline
|
|
Location
|
|
Capacity
(MW)
|
|
Project Type
|
|
Status
|
|
Expected
COD
|
|
Business Model
|
|
Portfolio of “Micro
PPs,” 0.5 MW each
|
|
Hungary
|
|
15.0
|
|
Ground- mounted
|
|
Under Construction
|
|
2021
|
|
Build-Transfer
|
|
Project Portfolios
|
|
Hungary
|
|
34.2
|
|
Ground- mounted
|
|
Under Development
|
|
2021/2022
|
|
Build-Transfer
|
|
Total
|
|
|
|
49.2
|
|
|
|
|
|
|
|
|
France
In France, we have a project pipeline of 100 MW,
all of which are ground-mounted projects.
|
France: Late-stage Pipeline
|
|
Location
|
|
Capacity
(MW)
|
|
Project Type
|
|
Status
|
|
Expected
COD
|
|
Business Model
|
|
Project Portfolios
|
|
France
|
|
70.0
|
|
Ground-mounted
|
|
Under Development
|
|
2021/2022
|
|
Project Development
|
|
AMI Aups / Tenergie
|
|
France
|
|
30.0
|
|
Ground-mounted
|
|
Under Development
|
|
2021/2022
|
|
Project Development
|
|
Total
|
|
|
|
100.0
|
|
|
|
|
|
|
|
|
Spain
We have a late-stage pipeline of 95 MW of ground-mounted
projects located in the Murcia and Alicante regions.
|
Spain: Late-stage Pipeline
|
|
Location
|
|
Capacity
(MW)
|
|
Project Type
|
|
Status
|
|
Expected
COD
|
|
Business Model
|
|
Caravaca
|
|
Murcia
|
|
6.0
|
|
Ground-mounted
|
|
Under Development
|
|
2021
|
|
Build-Transfer
|
|
Altajero
|
|
Murcia
|
|
6.0
|
|
Ground-mounted
|
|
Under Development
|
|
2021
|
|
Build-Transfer
|
|
Abanilla
|
|
Alicante
|
|
4.0
|
|
Ground-mounted
|
|
Under Development
|
|
2022/2023
|
|
Build-Transfer
|
|
Pedrera
|
|
Alicante
|
|
10.0
|
|
Ground-mounted
|
|
Under Development
|
|
2022/2023
|
|
Build-Transfer
|
|
Serrata
|
|
Alicante
|
|
10.0
|
|
Ground-mounted
|
|
Under Development
|
|
2022/2023
|
|
Build-Transfer
|
|
Elda
|
|
Alicante
|
|
5.0
|
|
Ground-mounted
|
|
Under Development
|
|
2022/2023
|
|
Build-Transfer
|
|
San Carlos
|
|
Alicante
|
|
5.0
|
|
Ground-mounted
|
|
Under Development
|
|
2022/2023
|
|
Build-Transfer
|
|
Renedo
|
|
Alicante
|
|
29.0
|
|
Ground-mounted
|
|
Under Development
|
|
2022/2023
|
|
Build-Transfer
|
|
Barcial
|
|
Alicante
|
|
20.0
|
|
Ground-mounted
|
|
Under Development
|
|
2022/2023
|
|
Build-Transfer
|
|
Total
|
|
|
|
95.0
|
|
|
|
|
|
|
|
|
Germany
We have secured a late-stage pipeline of 50 MW
of ground-mounted projects now under development.
|
Project Pipeline
|
|
Capacity
(MW)
|
|
Project Type
|
|
Status
|
|
Expected
COD
|
|
Business Model
|
|
Project Portfolios
-Vodasun
|
|
50.0
|
|
Ground-mounted
|
|
Under Development
|
|
2021/2022
|
|
Build-Transfer
|
|
Total
|
|
50.0
|
|
|
|
|
|
|
|
|
U.K.
We have a late-stage pipeline of 150 MW of ground-mounted
projects under development.
|
Project Pipeline
|
|
Capacity
(MW)
|
|
Project Type
|
|
Status
|
|
Expected
COD
|
|
Business Model
|
|
UK- Novergy
|
|
100.0
|
|
Ground-mounted
|
|
Under Development
|
|
2021/2022
|
|
Project Development
|
|
UK- Innova
|
|
50.0
|
|
Ground-mounted
|
|
Under Development
|
|
2021/2022
|
|
Project Development
|
|
Total
|
|
150.0
|
|
|
|
|
|
|
|
|
Operating Assets and Completed
Projects for Sale
We currently own 173 MW of operating projects,
of which we operate 149.2 MW of rooftop projects in China, and 24.1 MW in the U.S. The China rooftop solar projects are concentrated in
several attractive eastern provinces with Commercial and Industrial (C&I) off-takers. In the fourth quarter of 2020, we sold 15.4
MW of operating assets in Romania and 4.3 MW in the U.K.
|
Operating Assets
|
|
Capacity
(MW)
|
|
|
China DG
|
|
|
149.2
|
|
|
- Zhejiang
|
|
|
36.1
|
|
|
- Henan
|
|
|
46.1
|
|
|
- Anhui
|
|
|
30.9
|
|
|
- Hebei
|
|
|
16.9
|
|
|
- Jiangsu
|
|
|
12.8
|
|
|
- Shandong
|
|
|
2.0
|
|
|
- Fujian
|
|
|
4.4
|
|
|
United States
|
|
|
24.1
|
|
|
Total
|
|
|
173.3
|
|
Fourth Quarter and Full Year
2020 Financial Details
Revenue
Fourth quarter revenue was $16.8 million, up sequentially
and down year-over-year. Revenue from Project Development was largely driven by the sale of solar projects in Poland and Hungary. Energy
sales were mostly from the 32.7 million KWh generated by our rooftop DG projects in China, Romania and the U.S.
Full year 2020 revenue of $73.9 million was down
38% year-over-year. Revenue from the Project Development business was $49.6 million, driven by project sales in multiple countries, including
the U.S., France, Poland, Hungary and Canada. Electricity sales were $23.5 million, primarily attributable to the 182.2 million KWh of
electricity generated by our projects in China, Romania, the U.K. and the U.S.
By their nature, project sales are large with
unpredictable timing, and quarterly revenue will often fluctuate significantly. The Company measures its success in project sales over
longer periods, typically at least a year.
Gross Profit and Gross Margin
Gross profit was $2.5 million in the fourth quarter
of 2020, yielding a gross margin of 14.7%. This result compares to a gross profit of $5.9 million and gross margin of 60.6% in the third
quarter of 2020, and a gross profit of $7.1 million and gross margin of 26.9% in the fourth quarter of 2019.
For the full year 2020, gross profit was $17.2
million, yielding a gross margin of 23.2%. This compares to a gross profit of $34.2 million and gross margin of 28.7% in 2019.
Operating Expense and Operating Income
Operating expenses in the fourth quarter of 2020
were $1.5 million, down both sequentially and year-over-year. Sales and marketing expenses of $154,000 were up sequentially and down year-over-year.
General and administrative expenses of $8.8 million were up both sequentially and year-over-year. Operating expenses in the fourth quarter
2020 included an impairment charge of $0.3 million on the fixed assets related to the expected lower sale price of power projects in China
and operating income of $7.8 million related to the Romania project disposal gain of $15.4 million and joint liability loss of $7.5 million.
Fourth quarter 2020 operating income was $1.0
million, compared to operating income of $2.9 million in Q3 2020 and operating loss of $13.3 million in Q4 2019. Non-GAAP operating income
in Q4 2019 was $0.7 million, compared to $4.5 million in Q3 2020 and $5.3 million in Q4 2019.
For the full year 2020, operating expenses were
$9.9 million, down from $35.2 million in 2019. Sales and marketing expenses were $433,000, down from $750,000 in 2019. General and administrative
expenses were $14.5 million, down from $15.8 million in 2019. Operating expenses in 2020 included an impairment charge of $1.4 million
on the fixed assets related to the expected lower sale price of power projects in China and other operating income of $6.5 million related
to the Romania project disposal gain of $15.4 million, joint liability loss of $7.5 million and project write-off in the U.S. of $1.5
million.
Operating income in 2020 was $7.3 million, compared
to operating loss of $1.0 million in 2019. Non-GAAP operating income was $10.5 million in 2020, down from $26.4 million in 2019. Non-GAAP
operating margin was 14.0% for the full year of 2020, down from 21.9% in 2019.
In the fourth quarter of 2020, we sold
15.4 MW of operating assets in Romania and 4.3 MW in the U.K. for a combined value of more than $30 million, resulting in meaningful profits.
However, the net proceeds were not on the revenue line in compliance with the GAAP accounting standards.
Net Income
In the fourth quarter of 2020, net income attributed
to ReneSola Power was $2.5 million, compared to net income of $2.1 million in the third quarter of 2020 and net loss of $10.9 million
in the fourth quarter of 2019. Net income per share was $0.05 in the fourth quarter of 2020, compared to $0.04 in the third quarter of
2020 and net loss per share of $0.23 in the fourth quarter of 2019.
Non-GAAP net income attributed to ReneSola Power
in the fourth quarter of 2020 was $0.1 million, compared to $2.5 million in the third quarter of 2020 and $4.3 million in the fourth quarter
of 2019. Non-GAAP net income per share was $0.00, compared to $0.05 in the third quarter of 2020 and $0.09 in the fourth quarter of 2019.
Net income attributed to ReneSola Power was $3.3
million in the full year 2020, compared to net loss of $8.8 million in 2019. Net income per share was $0.07 in 2020, compared to net loss
per share of $0.22 in 2019. Non-GAAP net income attributed to ReneSola Power was $4.2 million in the full year 2020, compared to $14.1
million in 2019. Non-GAAP net income per share was $0.09 in 2020, compared to $0.35 in 2019.
Financial Position
Cash and equivalents were $40.6 million as of
December 31, 2020, compared to $15.6 million as of September 30, 2020. Total current assets (as disclosed in appendix 2) were $137.2 million
as of December 31, 2020, compared to $72.5 million as of September 30, 2020. Long-term borrowings were nil as of December 31, 2020, compared
to $3.0 million as of September 30, 2020. Our long-term failed sale-lease back and finance lease liabilities associated with the financial
leasing payables for rooftop projects in China were $44.0 million as of December 31, 2020, compared to $45.2 million as of September 30,
2020. Short-term borrowings were $32.0 million as of December 30, 2020, up from $31.3 million as of September 30, 2020.
Cash flow used in operating activities was $13.5
million in 2020. Had we collected the net proceeds from the sales of the operating assets in the Romania and the U.K. by December 31,
2020, we would have generated solid operating cash flow in 2020.
Outlook
For 2021, we expect revenue in the range of $90
to $100 million and gross margin of over 25%. We expect a profitable 2021 with significant profit growth compared to 2020. This outlook
reflects our strategy to focus on profitability and bottom-line growth.
For the first quarter of 2021, we expect revenue
to be in the range of $18 to $ 20 million and gross margin in the range of 10% to 11%.
Environmental, Social and Governance
(ESG) Focus
We recognize that our role in shaping a future
of sustainability brings important responsibilities. We are committed to building a sustainable, fair and secure future. We are helping
address global issues such as climate change, and focusing on the need for social justice and equality. In addition, we are
proud of the progress made in the areas of environmental
stewardship, social solidarity, and corporate governance. We look forward to sharing with you our future objectives and disclosures.
Conclusion
Our solid results in 2020 reflect strong
execution against a wise strategy. Our strategic focus on the U.S., Europe and China positions us as a global leader in project
development and will produce positive results. We are driving down our cost of capital by utilizing the U.S. capital markets to
strengthen our balance sheet. We are operating efficiently and profitably, delivering high returns, and generating strong cash flow.
We are committed to growing our business globally. With our talented team, diversified geographic coverage and track record of
success at every stage of project development, we believe we are well-positioned to deliver profitable growth in the years
ahead.
I want to thank the ReneSola Power team for their
great effort in addressing all the challenges we face in the current COVID-affected environment. I also want to thank our investors and
stakeholders for your continued support of ReneSola Power.
Fourth Quarter and Full Year
2020 Earnings Results Conference Call
We will host a conference call today to discuss
our fourth quarter and full year 2020 business and financial results. The call is scheduled to begin at 8:30 a.m. U.S. Eastern Time on
Friday, March 26, 2021 (8:30 p.m. China Standard Time.)
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/7836968
A replay of the conference call may be accessed
by phone at the following numbers until April 3, 2021. To access the replay, please reference the conference passcode 7836968.
|
|
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 (800) 870-0206
+86 (400) 602-2065
|
|
|
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://www.renesolapower.com.
Sincerely,
Yumin Liu
Chief Executive Officer
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:
In the United States:
ReneSola Power
Mr. Adam Krop
+1
(347) 577-9055 x115
IR.USA@renesolapower.com
The Blueshirt Group
Mr. Ralph Fong
+1 (415) 489-2195
ralph@blueshirtgroup.com
In China:
ReneSola Power
ir@renesolapower.com
The Blueshirt Group Asia
Mr. Gary Dvorchak, CFA
+86 (138) 1079-1480
gary@blueshirtgroup.com
Appendix 1: Unaudited Consolidated Statements
of Income
RENESOLA
LTD
Unaudited Consolidated Statements of Income
(US dollars in thousands, except ADS and share data)
|
|
|
Three Months Ended
|
|
|
Twelve Months Ended
|
|
|
|
|
Dec 31, 2020
|
|
|
Sep 30, 2020
|
|
|
Dec 31, 2019
|
|
|
FY 2020
|
|
|
FY 2019
|
|
|
Net revenues
|
|
|
16,814
|
|
|
|
9,749
|
|
|
|
26,529
|
|
|
|
73,915
|
|
|
|
119,117
|
|
|
Cost of revenues
|
|
|
(14,348
|
)
|
|
|
(3,844
|
)
|
|
|
(19,390
|
)
|
|
|
(56,749
|
)
|
|
|
(84,891
|
)
|
|
Gross profit
|
|
|
2,466
|
|
|
|
5,905
|
|
|
|
7,139
|
|
|
|
17,166
|
|
|
|
34,226
|
|
|
GP%
|
|
|
14.67
|
%
|
|
|
60.57
|
%
|
|
|
26.91
|
%
|
|
|
23.22
|
%
|
|
|
28.73
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (expenses) income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
(154
|
)
|
|
|
(76
|
)
|
|
|
(285
|
)
|
|
|
(433
|
)
|
|
|
(750
|
)
|
|
General and administrative
|
|
|
(8,790
|
)
|
|
|
(1,890
|
)
|
|
|
(8,608
|
)
|
|
|
(14,513
|
)
|
|
|
(15,757
|
)
|
|
Impairment of long-lived assets
|
|
|
(339
|
)
|
|
|
-
|
|
|
|
(1,326
|
)
|
|
|
(1,432
|
)
|
|
|
(6,880
|
)
|
|
Other operating income (loss)
|
|
|
7,775
|
|
|
|
(1,064
|
)
|
|
|
(10,226
|
)
|
|
|
6,472
|
|
|
|
(11,803
|
)
|
|
Total operating expenses
|
|
|
(1,508
|
)
|
|
|
(3,030
|
)
|
|
|
(20,445
|
)
|
|
|
(9,906
|
)
|
|
|
(35,190
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
958
|
|
|
|
2,875
|
|
|
|
(13,306
|
)
|
|
|
7,260
|
|
|
|
(964
|
)
|
|
|
|
|
5.7
|
%
|
|
|
29.5
|
%
|
|
|
-50.2
|
%
|
|
|
9.8
|
%
|
|
|
-0.8
|
%
|
|
Non-operating (expenses) income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
419
|
|
|
|
165
|
|
|
|
587
|
|
|
|
976
|
|
|
|
823
|
|
|
Interest expense
|
|
|
(1,424
|
)
|
|
|
(1,519
|
)
|
|
|
(2,277
|
)
|
|
|
(6,206
|
)
|
|
|
(9,160
|
)
|
|
Foreign exchange gains (loss)
|
|
|
1,389
|
|
|
|
945
|
|
|
|
719
|
|
|
|
769
|
|
|
|
(1,274
|
)
|
|
Income before income tax, noncontrolling interests
|
|
|
1,342
|
|
|
|
2,466
|
|
|
|
(14,277
|
)
|
|
|
2,799
|
|
|
|
(10,575
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
19
|
|
|
|
(42
|
)
|
|
|
(182
|
)
|
|
|
(163
|
)
|
|
|
(1,105
|
)
|
|
Net income
|
|
|
1,361
|
|
|
|
2,424
|
|
|
|
(14,459
|
)
|
|
|
2,636
|
|
|
|
(11,680
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income (loss) attributed to noncontrolling interests
|
|
|
(1,094
|
)
|
|
|
313
|
|
|
|
(3,519
|
)
|
|
|
(623
|
)
|
|
|
(2,849
|
)
|
|
Net income attributed to ReneSola Ltd
|
|
|
2,455
|
|
|
|
2,111
|
|
|
|
(10,940
|
)
|
|
|
3,259
|
|
|
|
(8,831
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income attributed to ReneSola Ltd per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.05
|
|
|
|
0.04
|
|
|
|
(0.23
|
)
|
|
|
0.07
|
|
|
|
(0.22
|
)
|
|
Diluted
|
|
|
0.05
|
|
|
|
0.04
|
|
|
|
(0.23
|
)
|
|
|
0.07
|
|
|
|
(0.22
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in computing income per share*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
53,333,944
|
|
|
|
48,684,311
|
|
|
|
48,081,890
|
|
|
|
49,166,354
|
|
|
|
40,595,551
|
|
|
Diluted
|
|
|
53,956,012
|
|
|
|
48,684,311
|
|
|
|
48,081,890
|
|
|
|
49,788,422
|
|
|
|
40,595,551
|
|
*Share
refers to our American depositary shares (ADSs), each of which represents 10 ordinary shares
Appendix 2: Unaudited Consolidated Statements
of Balance Sheet
RENESOLA
LTD
Unaudited
Consolidated Balance Sheets
(US
dollars in thousands)
|
|
|
Dec 31,
|
|
|
Sep 30,
|
|
|
Dec 31,
|
|
|
|
|
2020
|
|
|
2020
|
|
|
2019
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
40,593
|
|
|
|
15,570
|
|
|
|
24,292
|
|
|
Restricted cash
|
|
|
83
|
|
|
|
824
|
|
|
|
405
|
|
|
Accounts receivable, net of allowances for doubtful accounts
|
|
|
20,600
|
|
|
|
18,123
|
|
|
|
13,835
|
|
|
Advances to suppliers, net
|
|
|
143
|
|
|
|
292
|
|
|
|
248
|
|
|
Value added tax recoverable
|
|
|
3,652
|
|
|
|
6,575
|
|
|
|
7,508
|
|
|
Prepaid expenses and other current assets
|
|
|
44,826
|
|
|
|
10,181
|
|
|
|
6,069
|
|
|
Project assets current
|
|
|
24,992
|
|
|
|
20,960
|
|
|
|
32,125
|
|
|
Assets held for sale
|
|
|
2,271
|
|
|
|
-
|
|
|
|
18,579
|
|
|
Total current assets
|
|
|
137,160
|
|
|
|
72,525
|
|
|
|
103,061
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
119,943
|
|
|
|
139,653
|
|
|
|
143,301
|
|
|
Deferred tax assets, net
|
|
|
1,184
|
|
|
|
843
|
|
|
|
838
|
|
|
Project assets non-current
|
|
|
3,279
|
|
|
|
5,177
|
|
|
|
6,523
|
|
|
Goodwill
|
|
|
1,023
|
|
|
|
-
|
|
|
|
-
|
|
|
Operating lease right-of-use assets
|
|
|
23,246
|
|
|
|
22,390
|
|
|
|
23,991
|
|
|
Finance lease right-of-use assets
|
|
|
25,556
|
|
|
|
24,826
|
|
|
|
24,992
|
|
|
Other non-current assets
|
|
|
25,962
|
|
|
|
23,669
|
|
|
|
17,237
|
|
|
Total assets
|
|
|
337,353
|
|
|
|
289,083
|
|
|
|
319,943
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
|
31,981
|
|
|
|
31,292
|
|
|
|
35,757
|
|
|
Bond payable current
|
|
|
9,035
|
|
|
|
5,198
|
|
|
|
2,504
|
|
|
Accounts payable
|
|
|
6,245
|
|
|
|
9,804
|
|
|
|
20,431
|
|
|
Advances from customers
|
|
|
901
|
|
|
|
82
|
|
|
|
86
|
|
|
Amounts due to related parties
|
|
|
7,657
|
|
|
|
2,639
|
|
|
|
2,748
|
|
|
Other current liabilities
|
|
|
19,829
|
|
|
|
14,785
|
|
|
|
27,163
|
|
|
Income tax payable
|
|
|
949
|
|
|
|
757
|
|
|
|
1,078
|
|
|
Salary payable
|
|
|
266
|
|
|
|
266
|
|
|
|
438
|
|
|
Operating lease liabilities current
|
|
|
1,093
|
|
|
|
1,375
|
|
|
|
453
|
|
|
Failed sale-lease back and finance lease liabilities current
|
|
|
8,097
|
|
|
|
7,047
|
|
|
|
9,579
|
|
|
Liabilities held for sale
|
|
|
2,189
|
|
|
|
-
|
|
|
|
9,168
|
|
|
Total current liabilities
|
|
|
88,242
|
|
|
|
73,245
|
|
|
|
109,405
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term borrowings
|
|
|
-
|
|
|
|
2,976
|
|
|
|
3,367
|
|
|
Operating lease liabilities non-current
|
|
|
21,411
|
|
|
|
20,444
|
|
|
|
22,888
|
|
|
Failed sale-lease back and finance lease liabilities non-current
|
|
|
43,963
|
|
|
|
45,171
|
|
|
|
46,737
|
|
|
Total liabilities
|
|
|
153,616
|
|
|
|
141,836
|
|
|
|
182,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
|
|
|
574,500
|
|
|
|
536,961
|
|
|
|
530,208
|
|
|
Additional paid-in capital
|
|
|
7,770
|
|
|
|
9,976
|
|
|
|
9,713
|
|
|
Accumulated deficit
|
|
|
(439,086
|
)
|
|
|
(441,544
|
)
|
|
|
(442,346
|
)
|
|
Accumulated other comprehensive loss
|
|
|
(3,570
|
)
|
|
|
(2,044
|
)
|
|
|
(2,859
|
)
|
|
Total equity attributed to ReneSola Ltd
|
|
|
139,614
|
|
|
|
103,349
|
|
|
|
94,716
|
|
|
Noncontrolling interest
|
|
|
44,123
|
|
|
|
43,898
|
|
|
|
42,830
|
|
|
Total shareholders' equity
|
|
|
183,737
|
|
|
|
147,247
|
|
|
|
137,546
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
|
337,353
|
|
|
|
289,083
|
|
|
|
319,943
|
|
Appendix 3: Unaudited Consolidated Statements
of Cash Flow
RENESOLA LTD
Unaudited Consolidated Statements of Cash Flow
(US dollar in thousands)
|
|
|
For The Year Ended
|
|
|
|
|
2020/12/31
|
|
|
2019/12/31
|
|
|
Net cash provided by (used in) operating activities
|
|
|
(13,934
|
)
|
|
|
55,914
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by investing activities
|
|
|
510
|
|
|
|
(1,597
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities
|
|
|
30,177
|
|
|
|
(39,304
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes
|
|
|
(720
|
)
|
|
|
1,085
|
|
|
Net increase in cash and cash equivalents and restricted cash
|
|
|
16,033
|
|
|
|
16,098
|
|
|
Cash and cash equivalents and restricted cash, beginning of the period
|
|
|
24,697
|
|
|
|
9,026
|
|
|
Cash and cash equivalents and restricted cash held for sale
|
|
|
(54
|
)
|
|
|
(427
|
)
|
|
Cash and cash equivalents and restricted cash, end of the period
|
|
|
40,676
|
|
|
|
24,697
|
|
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 one-time penalty of postponed payables, plus one-time OCI settlement, 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 one-time penalty of postponed payables,
plus one-time OCI settlement, 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.
GAAP to Non-GAAP Unaudited Reconciliation
（Part 1）
|
|
|
Three months ended
|
|
|
Year ended
|
|
|
|
|
Dec 31, 2020
|
|
|
Sep 31, 2020
|
|
|
Dec 31, 2019
|
|
|
Dec 31, 2020
|
|
|
Dec 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands)
|
|
|
Reconciliation of Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net revenue
|
|
$
|
16,814
|
|
|
$
|
9,749
|
|
|
$
|
26,529
|
|
|
$
|
73,915
|
|
|
$
|
119,117
|
|
|
Add: Discount of electricity subsidy in China
|
|
|
151
|
|
|
|
425
|
|
|
|
1,297
|
|
|
|
971
|
|
|
|
1,297
|
|
|
Non-GAAP Net revenue
|
|
$
|
16,965
|
|
|
$
|
10,174
|
|
|
$
|
27,826
|
|
|
$
|
74,886
|
|
|
$
|
120,414
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Gross Margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
US. GAAP as reported
|
|
$
|
2,466
|
|
|
$
|
5,905
|
|
|
$
|
7,139
|
|
|
$
|
17,166
|
|
|
$
|
34,226
|
|
|
Add: Discount of electricity subsidy in China
|
|
|
151
|
|
|
|
425
|
|
|
|
1,297
|
|
|
|
971
|
|
|
|
1,297
|
|
|
Non-GAAP Gross Margin
|
|
$
|
2,617
|
|
|
$
|
6,330
|
|
|
$
|
8,436
|
|
|
$
|
18,137
|
|
|
$
|
35,523
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating expenses
|
|
$
|
(1,508
|
)
|
|
$
|
(3,030
|
)
|
|
$
|
(20,445
|
)
|
|
$
|
(9,906
|
)
|
|
$
|
(35,190
|
)
|
|
Add: Discount of electricity subsidy in China
|
|
|
-
|
|
|
|
-
|
|
|
|
1,563
|
|
|
|
-
|
|
|
|
1,563
|
|
|
Add: Share based compensation
|
|
|
106
|
|
|
|
85
|
|
|
|
46
|
|
|
|
369
|
|
|
|
349
|
|
|
Add: Bad debt provision of receivables
|
|
|
6,674
|
|
|
|
362
|
|
|
|
6,051
|
|
|
|
7,021
|
|
|
|
6,982
|
|
|
Add: Impairment of long-lived assets
|
|
|
339
|
|
|
|
-
|
|
|
|
1,326
|
|
|
|
1,432
|
|
|
|
6,880
|
|
|
Add: Penalty of postponed property, plant and equipment payable
|
|
|
-
|
|
|
|
-
|
|
|
|
248
|
|
|
|
-
|
|
|
|
281
|
|
|
Add: Loss on OCI settlement
|
|
|
7,500
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7,500
|
|
|
|
-
|
|
|
Add: Loss on disposal of project assets
|
|
|
706
|
|
|
|
755
|
|
|
|
6,435
|
|
|
|
1,461
|
|
|
|
6,435
|
|
|
Add: Loss on disposal of property, plant and equipment
|
|
|
314
|
|
|
|
234
|
|
|
|
1,679
|
|
|
|
768
|
|
|
|
3,908
|
|
|
Less: Gains on disposal of property, plant and equipment
|
|
|
(16,032
|
)
|
|
|
(246
|
)
|
|
|
(33
|
)
|
|
|
(16,278
|
)
|
|
|
(302
|
)
|
|
Non-GAAP operating expenses
|
|
$
|
(1,901
|
)
|
|
$
|
(1,840
|
)
|
|
$
|
(3,131
|
)
|
|
$
|
(7,633
|
)
|
|
$
|
(9,095
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
-
|
|
|
Reconciliation of Operating Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Operating Income
|
|
$
|
958
|
|
|
$
|
2,875
|
|
|
$
|
(13,306
|
)
|
|
$
|
7,260
|
|
|
$
|
(964
|
)
|
|
Add: Discount of electricity subsidy in China
|
|
|
151
|
|
|
|
425
|
|
|
|
2,860
|
|
|
|
971
|
|
|
|
2,860
|
|
|
Add: Share based compensation
|
|
|
106
|
|
|
|
85
|
|
|
|
46
|
|
|
|
369
|
|
|
|
349
|
|
|
Add: Bad debt provision of receivables
|
|
|
6,674
|
|
|
|
362
|
|
|
|
6,051
|
|
|
|
7,021
|
|
|
|
6,982
|
|
|
Add: Impairment of long-lived assets
|
|
|
339
|
|
|
|
-
|
|
|
|
1,326
|
|
|
|
1,432
|
|
|
|
6,880
|
|
|
Add: Penalty of postponed property, plant and equipment payable
|
|
|
-
|
|
|
|
-
|
|
|
|
248
|
|
|
|
-
|
|
|
|
281
|
|
|
Add: Loss on OCI settlement
|
|
|
7,500
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7,500
|
|
|
|
-
|
|
|
Add: Loss on disposal of project assets
|
|
|
706
|
|
|
|
755
|
|
|
|
6,435
|
|
|
|
1,461
|
|
|
|
6,435
|
|
|
Add: Loss on disposal of property, plant and equipment
|
|
|
314
|
|
|
|
234
|
|
|
|
1,679
|
|
|
|
768
|
|
|
|
3,908
|
|
|
Less: Gains on disposal of property, plant and equipment
|
|
|
(16,032
|
)
|
|
|
(246
|
)
|
|
|
(33
|
)
|
|
|
(16,278
|
)
|
|
|
(302
|
)
|
|
Non-GAAP Operating Income
|
|
$
|
716
|
|
|
$
|
4,490
|
|
|
$
|
5,305
|
|
|
$
|
10,504
|
|
|
$
|
26,428
|
|
GAAP to Non-GAAP Unaudited Reconciliation
（Part 2）
|
|
|
Three months ended
|
|
|
Year ended
|
|
|
|
|
Dec 31, 2020
|
|
|
Sep 31, 2020
|
|
|
Dec 31, 2019
|
|
|
Dec 31, 2020
|
|
|
Dec 31, 2019
|
|
|
Reconciliation of Net Income(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net Income(loss)
|
|
$
|
1,361
|
|
|
$
|
2,424
|
|
|
$
|
(14,459
|
)
|
|
$
|
2,636
|
|
|
$
|
(11,680
|
)
|
|
Add: Discount of electricity subsidy in China
|
|
|
151
|
|
|
|
425
|
|
|
|
2,860
|
|
|
|
971
|
|
|
|
2,860
|
|
|
Add: Share based compensation
|
|
|
106
|
|
|
|
85
|
|
|
|
46
|
|
|
|
369
|
|
|
|
349
|
|
|
Add: Bad debt provision of receivables
|
|
|
6,674
|
|
|
|
362
|
|
|
|
6,051
|
|
|
|
7,021
|
|
|
|
6,982
|
|
|
Add: Impairment of long-lived assets
|
|
|
339
|
|
|
|
-
|
|
|
|
1,326
|
|
|
|
1,432
|
|
|
|
6,880
|
|
|
Add: Penalty of postponed property, plant and equipment payable
|
|
|
-
|
|
|
|
-
|
|
|
|
248
|
|
|
|
-
|
|
|
|
281
|
|
|
Add: Loss on OCI settlement
|
|
|
7,500
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7,500
|
|
|
|
-
|
|
|
Add: Loss on disposal of project assets
|
|
|
706
|
|
|
|
755
|
|
|
|
6,435
|
|
|
|
1,461
|
|
|
|
6,435
|
|
|
Add: Loss on disposal of property, plant and equipment
|
|
|
314
|
|
|
|
234
|
|
|
|
1,679
|
|
|
|
768
|
|
|
|
3,908
|
|
|
Less: Gains on disposal of property, plant and equipment
|
|
|
(16,032
|
)
|
|
|
(246
|
)
|
|
|
(33
|
)
|
|
|
(16,278
|
)
|
|
|
(302
|
)
|
|
Less: Interest income of discounted electricity subsidy in China
|
|
|
(443
|
)
|
|
|
(144
|
)
|
|
|
(589
|
)
|
|
|
(954
|
)
|
|
|
(589
|
)
|
|
Add: Foreign exchange loss/(gain)
|
|
|
(1,389
|
)
|
|
|
(945
|
)
|
|
|
(719
|
)
|
|
|
(769
|
)
|
|
|
1,274
|
|
|
Non-GAAP Net Income(loss)
|
|
$
|
(713
|
)
|
|
$
|
2,950
|
|
|
$
|
2,844
|
|
|
$
|
4,157
|
|
|
$
|
16,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net income attributed to ReneSola Ltd
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP Net income attributed to ReneSola Ltd
|
|
$
|
2,455
|
|
|
$
|
2,111
|
|
|
$
|
(10,940
|
)
|
|
$
|
3,259
|
|
|
$
|
(8,831
|
)
|
|
Add: Discount of electricity subsidy in China
|
|
|
90
|
|
|
|
254
|
|
|
|
1,712
|
|
|
|
581
|
|
|
|
1,712
|
|
|
Add: Share based compensation
|
|
|
106
|
|
|
|
85
|
|
|
|
46
|
|
|
|
369
|
|
|
|
349
|
|
|
Add: Bad debt provision of receivables
|
|
|
6,548
|
|
|
|
362
|
|
|
|
6,051
|
|
|
|
6,895
|
|
|
|
6,982
|
|
|
Add: Impairment of long-lived assets
|
|
|
203
|
|
|
|
-
|
|
|
|
794
|
|
|
|
1,223
|
|
|
|
4,119
|
|
|
Add: Penalty of postponed property, plant and equipment payable
|
|
|
-
|
|
|
|
-
|
|
|
|
248
|
|
|
|
-
|
|
|
|
281
|
|
|
Add: Loss on OCI settlement
|
|
|
7,500
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7,500
|
|
|
|
-
|
|
|
Add: Loss on disposal of project assets
|
|
|
706
|
|
|
|
755
|
|
|
|
6,435
|
|
|
|
1,461
|
|
|
|
6,435
|
|
|
Add: Loss on disposal of property, plant and equipment
|
|
|
188
|
|
|
|
140
|
|
|
|
1,005
|
|
|
|
460
|
|
|
|
2,340
|
|
|
Less: Gains on disposal of property, plant and equipment
|
|
|
(16,032
|
)
|
|
|
(147
|
)
|
|
|
(20
|
)
|
|
|
(16,179
|
)
|
|
|
(181
|
)
|
|
Less: Interest income of discounted electricity subsidy in China
|
|
|
(265
|
)
|
|
|
(86
|
)
|
|
|
(353
|
)
|
|
|
(571
|
)
|
|
|
(353
|
)
|
|
Add: Foreign exchange loss/(gain)
|
|
|
(1,389
|
)
|
|
|
(945
|
)
|
|
|
(719
|
)
|
|
|
(769
|
)
|
|
|
1,274
|
|
|
Non-GAAP Net income attributed to ReneSola Ltd
|
|
$
|
110
|
|
|
$
|
2,529
|
|
|
$
|
4,259
|
|
|
$
|
4,229
|
|
|
$
|
14,127
|
|
