JIASHAN, China, Aug. 12 /PRNewswire-Asia-FirstCall/ -- ReneSola Ltd
("ReneSola" or the "Company") (NYSE:SOL) (AIM: SOLA), a leading
vertically integrated Chinese manufacturer of solar products, today
announced its unaudited financial results for the second quarter
ended June 30, 2009. (Logo:
http://www.newscom.com/cgi-bin/prnh/20080506/CNTU030 ) Recent
Operating Highlights -- According to schedule, ReneSola commenced
production of the first batch of polysilicon from Phase 1 of its
two-phase, 3,000 metric tonne ("MT") annualized capacity
polysilicon manufacturing facility in China's Sichuan province in
July 2009. Production in 2009 is expected to be in the range of 400
MT to 500 MT, while production for 2010 is expected to be in the
range of 2,800 MT to 2,900 MT. -- ReneSola successfully completed
the acquisition of Wuxi Jiacheng Solar Energy Technology Co. ("JC
Solar"), on May 31, 2009. In June 2009, JC Solar shipped 2.7
megawatts ("MW") of modules and recorded gross margin of over 30%.
-- Recently, ReneSola further enhanced its liquidity by increasing
its total onshore bank credit lines to US$634 million, with an
additional US$133 million in credit lines expected from Bank of
China. Results for the Second Quarter of 2009 Product Shipment
Total solar product shipment in Q2 2009 was 85.9 MW, consisting of
83.2 MW from wafer shipments and 2.7 MW from module shipments. Net
Revenues Net revenues for Q2 2009 were US$82.6 million, a decrease
of 22.7% sequentially and 52.2% year-over-year. Gross Profit (Loss)
Gross profit for Q2 2009 was US$4.3 million, compared to gross loss
of US$51.1 million in Q1 2009(1) and gross profit of US$42.8
million in Q2 2008. Gross margin for Q2 2009 was 5.1%, compared to
negative 47.8% for Q1 2009 and positive 24.7% for Q2 2008.
Operating Profit (Loss) Operating loss for Q2 2009 was US$4.0
million, compared to an operating loss of US$58.3 million for Q1
2009(1). Operating margin for Q2 2009 was negative 4.8%, compared
to negative 54.6% for Q1 2009(1). Total operating expenses for Q2
2009 were US$8.2 million, an increase from US$7.3 million for Q1
2009, mainly due to the US$0.78 million amortization of intangible
assets consisting of customer relations and order backlog from the
JC Solar acquisition. Earnings (Loss) Before Income Tax Loss before
income tax for Q2 2009 was US$2.9 million, compared to a loss of
US$62.8 million for Q1 2009(1). The Company recognized a net gain
of US$5.4 million as a result of its US$40.1 million convertible
bond repurchase using cash and issuance of 4,000,000 ordinary
shares during the quarter. Taxation A tax expense of US$0.7 million
was recognized for Q2 2009, compared with a tax benefit of US$32.8
million for Q1 2009, as a result of the inventory write-down in Q1
2009(1). Net Income (Loss) Attributable To Holders of Ordinary
Shares Net loss attributable to holders of ordinary shares for Q2
2009 was US$3.6 million, compared to net loss attributable to
holders of ordinary shares of US$30.0 million for Q1 2009(1). Q2
2009 basic and diluted loss per share was US$0.03, and basic and
diluted loss per ADS was US$0.05. Three months Three months Three
months ended ended ended June 30, 2008 March 31, 2009 June 30, 2009
(Unaudited) (Unaudited) (Unaudited) Net revenue (US$000) 173,007
106,946 82,629 Gross profit (loss) (US$000) 42,786 (51,087) 4,251
Gross margin (%) 24.7 (47.8) 5.1 Operating profit (loss) (US$000)
34,535 (58,346) (3,962) Foreign exchange loss (US$000) (797) (550)
(504) Profit (loss) for the period (US$000) 23,309 (30,019) (3,589)
"The second quarter of 2009 marked an historic quarter in
ReneSola's evolution as a solar company," commented Mr. Xianshou
Li, ReneSola's chief executive officer. "During the quarter, we
completed our transformation from one of the world's largest
manufacturers of solar wafers into a low-cost, fully integrated
producer of solar products following the commencement of production
at our 3,000 MT Sichuan polysilicon manufacturing facility and the
successful acquisition of JC Solar. We have demonstrated our
resilience and ability to achieve strategic and operational
milestones despite the continuing difficult operating environment.
We expect that as industry fundamentals continue to improve, the
benefits brought forward by our fully integrated operations will
further enhance our competitive position in the global solar
industry." Mr. Charles Bai, ReneSola's chief financial officer,
added, "Our results for the second quarter of 2009 marked a
significant step toward a return to profitability for ReneSola. In
the face of a challenging overall environment, we increased our
gross profit margin to 5.1% as a result of prudent inventory and
purchasing management and improved manufacturing efficiency. We are
hopeful that during the remainder of the year, we will continue to
see margin improvement as a result of stable wafer pricing and our
inventory carrying value more closely resembling spot polysilicon
market prices." Recent Business Developments Financing Update
ReneSola's wholly-owned subsidiary, Zhejiang Yuhui Solar Energy
Source Co., Ltd ("Zhejiang Yuhui"), recently signed a strategic
cooperation agreement (the "agreement") with Bank of China, Jiaxing
Branch (the "Bank"). Under terms of the agreement, the Bank will
grant total credit facilities of US$249 million to Zhejiang Yuhui.
The new credit facilities include existing credit facilities of
US$116 million that the Bank has already granted to Zhejiang Yuhui.
The credit facilities include short-term credit lines for working
capital, mid- to long-term project loans, loans to fund
acquisitions, and domestic and international trade finance. The
grant of facilities is subject to approval by the provincial branch
of Bank of China. In addition to the credit facilities, the Bank
also intends to provide mid- to long-term financing to solar
projects that the Company has been developing, subject to the
bank's internal risk assessment and approval procedures. Sichuan
Polysilicon Facility Launches Production As announced in mid-July
of 2009, the Company successfully commenced production of the first
batch of polysilicon from Phase 1 of its two-phase, 3,000 MT
annualized capacity polysilicon manufacturing plant. Phase 2 is
expected to reach mechanical completion in September of 2009.
Output from the polysilicon facility is expected to be in the range
of 400 MT to 500 MT in 2009 and is now expected to increase to
between 2,800 MT and 2,900 MT in 2010. The facility utilizes a
close-loop Advanced Siemens process for polysilicon production.
Polysilicon production cost is expected to decline to between
approximately US$40 per kilogram to US$45 per kilogram by the first
half of 2010. Successful Acquisition and Integration of JC Solar As
previously announced, Zhejiang Yuhui entered into an agreement on
May 20, 2009 to acquire the entire issued share capital of the
solar cell and module manufacturer JC Solar. The acquisition closed
on May 31, 2009. As of June 30, 2009, JC Solar had annual solar
cell and module manufacturing capacities of 25 MW and 50 MW,
respectively. By the end of 2009, ReneSola is expected to have
annual solar cell manufacturing capacity of 100 MW and solar module
manufacturing capacity of 250 MW. Letters of Intent Signed for
Domestic Projects As previously announced, the Company entered into
a letter of intent with the Yancheng city government in Jiangsu
province to develop a 500 MW on-grid solar power generation
project. In addition, the Company has been granted the exclusive
right in a letter of intent with the Panzhihua east district
government in Sichuan province to develop a 5 MW rooftop project.
Both projects are subject to feasibility studies and approvals by
various government authorities. 2009 Outlook The Company expects
revenues to increase by 60% to 70% sequentially in Q3. The Company
maintains its full year product shipment outlook of 450 MW to 500
MW and its full year revenue outlook of US$500 million to US$550
million. Conference Call Information ReneSola's management will
host an earnings conference call on Wednesday, August 12, 2009 at
8:30 a.m. U.S. Eastern Time / 8:30 p.m. Beijing/Hong Kong time /
1:30 p.m. British Summer Time. Dial-in details for the earnings
conference call are as follows: U.S. / International:
+1-617-614-6205 United Kingdom: +44-207-365-8426 Hong Kong:
+852-3002-1672 Please dial in 10 minutes before the call is
scheduled to begin and provide the passcode to join the call. The
passcode is "ReneSola Call." A replay of the conference call may be
accessed by phone at the following number until August 19, 2009:
International: +1-617-801-6888 Passcode: 36277347 Additionally, a
live and archived webcast of the conference call will be available
on the Investor Relations section of ReneSola's website at
http://www.renesola.com/ . About ReneSola ReneSola Ltd ("ReneSola")
is a leading Chinese manufacturer of solar products based in China.
Capitalizing on proprietary technologies and technical know-how,
ReneSola manufactures monocrystalline and multicrystalline solar
wafers. In addition, ReneSola strives to enhance its
competitiveness through upstream integration into virgin
polysilicon manufacturing. ReneSola possesses a global network of
suppliers and customers that include some of the leading global
manufacturers of solar cells and modules. ReneSola's shares are
currently traded on the New York Stock Exchange (NYSE:SOL) and the
AIM of the London Stock Exchange (AIM: SOLA). For more information
about ReneSola, please visit http://www.renesola.com/ . Safe Harbor
Statement This press release 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 we describe what we "believe," "expect" or
"anticipate" will occur, what "will" or "could" happen, and other
similar statements), you must remember that our expectations may
not be correct, even though we believe that they are reasonable. We
do 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 our filings with the U.S. Securities and Exchange
Commission, including our annual report on Form 20-F. We undertake
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 our situation
may change in the future. (1) In the first quarter of 2009, the
Company recorded a US$68.0 million inventory write-down against the
net realizable value of inventories as a result of the rapid
decrease in the market price and value of feedstock such as
polysilicon and scrap silicon materials, work in progress materials
and finished solar wafers. For Investor and Media Inquiries, Please
Contact: In China: Ms. Julia Xu ReneSola Ltd Tel: +86-573-8477-3372
Email: Mr. Derek Mitchell Ogilvy Financial, Beijing Tel:
+86-10-8520-6284 Email: In the United States: Ms. Jessica Barist
Cohen Ogilvy Financial, New York Tel: +1-646-460-9989 Email: In the
UK: Mr. Tim Feather / Mr. Richard Baty Hanson Westhouse Limited
Tel: +44-20-7601-6100 Email: / CONSOLIDATED BALANCE SHEET As at As
at As at December 31, March 31, June 30, 2008 2009 2009 US$000
US$000 US$000 ASSETS Current assets: Cash and cash equivalents
112,333 172,614 173,543 Restricted cash 5,958 67,394 58,068
Accounts receivable, net of allowances for doubtful receivables
43,160 34,965 35,319 Inventories 193,036 148,856 142,703 Advances
to suppliers 36,991 18,930 20,174 Amounts due from related parties
457 441 457 Value added tax recoverable 15,498 22,829 35,374
Prepaid expenses and other current assets 13,722 10,107 5,772
Deferred tax assets 18,979 38,748 12,877 Total current assets
440,134 514,884 484,287 Property, plant and equipment, net 341,427
415,561 510,085 Prepaid land rent, net 13,472 13,372 19,505 Other
Intangible assets -- -- 3,934 Deferred tax assets 2,340 15,049
45,568 Deferred convertible bond issue costs 1,970 1,573 834
Advances to suppliers over one year 45,729 48,635 40,958 Advances
for purchases of property, plant and equipment 161,705 164,959
139,359 Equity investment -- -- -- Other long-term assets 1,011
1,064 1,397 Goodwill -- -- 5,323 Total assets 1,007,788 1,175,097
1,251,250 LIABILITIES AND EQUITY Current liabilities: Short-term
borrowings 191,987 277,006 347,939 Accounts payable 37,942 37,181
42,055 Advances from customers 49,284 58,584 43,872 Amount due to
related party 11,863 24 24 Other current liabilities 42,060 47,156
59,321 Total current liabilities 333,136 419,951 493,211
Convertible bond payable 138,904 139,080 98,992 Long-term
borrowings 32,833 135,667 159,586 Advances from customers over one
year 105,203 113,181 114,074 Other long-term liabilities 15,624
15,197 20,621 Total liabilities 625,700 823,076 886,484 ReneSola
Ltd. Shareholders' equity Common shares 330,666 330,666 345,645
Additional paid-in capital 17,769 18,457 19,630 Retained earnings
(deficit) 11,294 (18,725) (22,313) Accumulated other comprehensive
income 22,080 21,623 21,804 Total ReneSola Ltd. Shareholders'
equity 381,809 352,021 364,766 Noncontrolling interests 279 -- --
Total equity 382,088 352,021 364,766 Total liabilities and equity
1,007,788 1,175,097 1,251,250 CONSOLIDATED INCOME STATEMENT Three
months Three months Three months ended ended ended June 30, March
31, June 30, 2008 2009 2009 US$000 US$000 US$000 Net revenues
173,007 106,946 82,629 Cost of revenues (130,221) (158,033)
(78,378) Gross profit (loss) 42,786 (51,087) 4,251 Operating
expenses: Sales and marketing (231) (116) (1,497) General and
administrative (4,869) (3,956) (4,503) Research and development
(3,504) (3,446) (3,401) Other general income (expenses) 353 259
1,188 Total operating expenses (8,251) (7,259) (8,213) Income
(loss) from operations 34,535 (58,346) (3,962) Interest income 234
456 176 Interest expenses (2,755) (4,048) (3,972) Foreign exchange
(loss) gain (797) (550) (504) Equity in earnings of investee --
(291) -- Gain on early extinguishment of debt, net of inducement
charges -- -- 5,353 Income (loss) before income tax 31,217 (62,779)
(2,909) Income tax benefit (expenses) (6,844) 32,760 (680) Net
income (loss) 24,373 (30,019) (3,589) Less: net (income) loss
attributable to noncontrolling interests (1,064) -- -- Net income
(loss) attributable to holders of ordinary shares 23,309 (30,019)
(3,589) Earnings (Loss) per share Basic 0.20 (0.22) (0.03) Diluted
0.19 (0.22) (0.03) Weighted average number of shares used in
computing earnings per share: Basic shares 120,159,747 137,624,912
139,383,154 Diluted shares 130,898,990 137,624,912 139,383,154
CONSOLIDATED CASH FLOW STATEMENT Six months Six months ended ended
June 30, June 30, 2008 2009 US$000 US$000 Operating activities: Net
income (loss) 40,984 (33,608) Adjustment to reconcile net income
(loss) to net cash used in operating activities: Noncontrolling
interests 1,122 -- Equity in earnings of investee -- 291 Inventory
write-down -- 68,047 Provision for purchase commitment -- --
Depreciation and amortization 6,112 13,457 Amortization of deferred
convertible bond issue costs and premium 1,528 1,426 Allowances for
doubtful receivables 253 631 Prepaid land use right expensed 117
127 Change in fair value of derivatives (573) (1) Gain on early
extinguishment of debt, net of inducement charges -- (5,353)
Share-based compensation 1,845 1,861 Impairment in investment -- --
Loss on disposal of long-lived assets -- 14 Changes in operating
assets and liabilities: Accounts receivable 5,526 9,951 Inventories
(84,370) (14,246) Advances to suppliers (43,641) 19,379 Amounts due
from related parties 903 (11,816) Value added tax recoverable 5
(19,082) Prepaid expenses and other current assets (3,716) 7,323
Prepaid land use right (1,579) (110) Accounts payable 7,476 2,954
Advances from customers 30,794 2,334 Other liabilities 3,999 2,981
Deferred taxes 5,380 (37,527) Accrued Warranty -- 65 Net cash
provided by (used in) operating activities (27,835) 9,098 Investing
activities: Purchases of property, plant and equipment (72,998)
(164,024) Advances for purchases of property, plant and equipment
(57,254) 18,186 Purchase of other long-term assets -- (447) Cash
received from government subsidy -- 5,959 Proceeds from disposal of
investment -- (635) Proceeds from disposal of property, plant and
equipment -- -- Restricted cash -- (51,722) Cash consideration for
acquisition -- (16,831) Cash associated with deconsolidated
subsidiary (4,416) -- Net cash used in investing activities
(134,668) (209,514) Financing activities: Proceeds from borrowings
120,938 436,780 Repayment of bank borrowings (40,348) (155,437) Net
proceeds from issuance of common shares 294,012 -- Proceeds from
exercised stock option 243 -- Dividend paid -- -- Cash received
from related parties 15 -- Cash paid to related parties -- -- Cash
consideration paid to repurchase convertible bonds -- (19,781) Net
cash provided by financing activities 374,860 261,562 Effect of
exchange rate changes 8,659 64 Net increase in cash and cash
equivalents 221,016 61,210 Cash and cash equivalents, beginning of
year 53,137 112,333 Cash and cash equivalents, end of year 274,153
173,543 http://www.newscom.com/cgi-bin/prnh/20080506/CNTU030
DATASOURCE: ReneSola Ltd CONTACT: In China: Ms. Julia Xu of
ReneSola Ltd, +86-573-8477-3372, or ; or Mr. Derek Mitchell of
Ogilvy Financial, Beijing, +86-10-8520-6284, or ; or in the United
States, Ms. Jessica Barist Cohen of Ogilvy Financial, New York,
+1-646-460-9989, or ; or in the UK: Mr. Tim Feather or Mr. Richard
Baty of Hanson Westhouse Limited, or +44-20-7601-6100, or or , all
for SOL Web site: http://www.renesola.com/
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