JIASHAN, China – ReneSola Ltd, a provider of energy-efficient products, announced its unaudited financial results for the fourth quarter and full year ended December 31, 2014.
In 2014 ReneSola shipped solar photovoltaic (PV) modules totaling 1,970.3 MW, representing an increase of 14.0% from 1,728.8 MW for full year 2013. Total solar wafer and module shipments were 2,816.4 MW, representing a decrease of 10.5% from 3,146.5 MW for full year 2013.
Net revenues were USD 1,561.5 million, an increase of 2.8% from USD 1,519.6 million in 2013. Gross profit was USD 209.3 million with a gross margin of 13.4%, compared to a gross profit of USD 113.1 million with a gross margin of 7.4% in 2013.
Operating income was USD 8.2 million with an operating margin of 0.5%, compared to an operating loss of USD 222.1 million with an operating margin of negative 14.6% in 2013. Net loss attributable to holders of ordinary shares was USD 33.6 million, representing basic and diluted loss per share of USD 0.17.
Fourth Quarter 2014 Financial and Operating Highlights
- Total solar module shipments were 488.4 megawatts (“MW”), exceeding previous guidance and representing an increase of 5.7% from Q3 2014. Total solar wafer and module shipments in Q4 2014 were 744.3 MW, representing an increase of 12.1% from 663.9 MW in Q3 2014, and a decrease of 5.1% from 784.1 MW 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 millionwith 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 1,970.3 MW, representing an increase of 14.0% from 1,728.8 MW for full year 2013. Total solar wafer and module shipments were 2,816.4 MW, representing a decrease of 10.5% from 3,146.5 MW 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 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$0.17and 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 smaller-sized 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.”
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