Company exceeds guidance with full year revenues of US$1.2 billion and solar
wafer and module shipments of 1.2 GW; achieves full year gross profit margin
of 28.9%
JIASHAN, China, March 1, 2011 /PRNewswire-Asia-FirstCall/ -- ReneSola Ltd ("ReneSola" or the "Company") , a leading global manufacturer of solar wafers and provider of solar modules, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2010.
(Logo: http://photos.prnewswire.com/prnh/20080506/CNTU030) Fourth Quarter 2010 Financial and Operating Highlights -- Total solar wafer and module shipments in Q4 2010 were a record 349.4 megawatts ("MW"), an increase of 7.5% from 324.9 MW in Q3 2010. -- Q4 2010 net revenues were a record US$386.4 million, an increase of 7.7% from US$358.7 million in Q3 2010. -- Q4 2010 gross profit was a record US$119.3 million with a gross margin of 30.9%, compared to gross profit of US$116.7 million with a gross margin of 32.5% in Q3 2010. -- Q4 2010 operating income was US$85.9 million with an operating margin of 22.2%, compared to operating income of US$86.4 million with an operating margin of 24.1% in Q3 2010. -- Q4 2010 net income was US$61.0 million, representing basic and diluted earnings per share of US$0.35 and US$0.34, respectively, and basic and diluted earnings per American depositary share ("ADS") of US$0.70 and US$0.69, respectively. -- Q4 2010 operating cash inflow was US$116.1 million, bringing cash and cash equivalents plus restricted cash to a record US$324.3 million as of the end of Q4 2010, compared to US$286.6 million as of the end of Q3 2010. Full Year 2010 Financial and Operating Highlights -- Total solar wafer and module shipments for the full year 2010 were a record 1,182.8 MW, an increase of 124.6% from 526.6 MW for the full year 2009. -- Full year 2010 net revenues were a record US$1,205.6 million, an increase of 136.2% from US$510.4 million in 2009. -- Full year 2010 gross profit was a record US$348.0 million with a gross profit margin of 28.9%, compared to a gross loss of US$43.2 million with a gross margin of negative 8.5% in 2009. -- Full year 2010 operating income was US$245.9 million with an operating margin of 20.4%, compared to an operating loss of US$90.6 million with an operating margin of negative 17.7% in 2009. -- Full year 2010 net income was a record US$169.0 million, representing basic and diluted earnings per share of US$0.98 and US$0.97, respectively, and basic and diluted earnings per ADS of US$1.96 and US$1.93, respectively. -- Full year 2010 operating cash inflow was a record US$403.2 million, bringing cash and cash equivalents plus restricted cash to a record US$324.3 million as of the end of 2010, compared to US$132.1 million as of the end of 2009. -- Total debt balance was US$522.3 million as of the end of 2010, compared to US$547.9 million as of the end of 2009, reducing the Company's net debt-to-equity ratio from 104.9% at the end of 2009 to 33.8% at the end of 2010. -- The Company achieved record return on equity of 34.4% for the full year 2010.
"We delivered excellent value to our shareholders for the full year 2010, achieving a record return on equity of 34.4%," said Mr. Xianshou Li, ReneSola's chief executive officer, "Capitalizing on robust market demand, we expanded our capacities and increased our shipments throughout the year to reach record revenues of over US$1.2 billion. We continued to execute on our cost-reduction strategy in the fourth quarter, lowering our non-silicon wafer processing cost to US$0.24/W. Our polysilicon plant also began to contribute to profitability as we continued to ramp up polysilicon production and reduce production cost to US$45/kg in February against a macro environment of rising polysilicon spot prices."
Mr. Li continued, "We intend to further reduce our wafer processing cost in 2011 and increase the current polysilicon production to 3,500 MT through de-bottlenecking while reducing cost to US$35/kg by the end of 2011. In the beginning of 2011, as part of our technology initiatives, we have unveiled a new multicrystalline wafer, the Virtus wafer, which achieves a higher cell conversion efficiency rate than the industry standard. As we continue to focus on cost reductions, expand our capacities and seek technological improvements, we expect to maintain our position as a leading cost-competitive solar manufacturer."
Julia Xu, ReneSola's chief financial officer, commented, "Our strategic execution in 2010 generated strong operating cash flows and prudent capital expenditures that have significantly improved our balance sheet. Our net debt-to-equity ratio has been reduced to 33.8% in 2010 from 104.9% in 2009, positioning us well as we look to capture market share through capacity expansions. In addition to record revenues of US$1.2 billion and record shipments of 1.2 GW, we achieved impressive gross and operating margins of 28.9% and 20.4%, respectively, for the full year 2010. As a single segment player with a focus on wafer production, we capitalized on strong market demand and reduced in-house manufacturing cost to deliver a strong performance in 2010."
Ms. Xu continued, "In 2011, we expect to face increased market competition due to additional solar capacities that had been added. Accordingly, we have secured over 20 long-term contracts in 2010, representing 1.3 GW of expected wafer sales in 2011, while our in-house polysilicon production will satisfy approximately 30% of our internal polysilicon demand with a full-year average cost per kilogram between US$40 and US$45."
Fourth Quarter 2010 Results Solar Wafer and Module Shipments 4Q10 3Q10 4Q09 Q-o-Q% Y-o-Y% Total Solar Wafer and Module Shipments (MW) 349.4 324.9 202.9 7.5% 72.2% Wafer Shipments (MW) 222.6 226.6 187.4 (1.8%) 18.8% -------------------- ----- ----- ----- ------ ---- Module Shipments (MW) 126.8 98.3 14.6 29.0% 768.5% --------------------- ----- ---- ---- ---- ----- Net Revenues 4Q10 3Q10 4Q09 Q-o-Q% Y-o-Y% ---- ---- ---- ------ ------ Net Revenues (US$mln) $386.4 $358.7 $179.9 7.7% 114.8% --------------------- ------ ------ ------ --- -----
Record revenues in Q4 2010 were driven by higher wafer average selling price ("ASP"), excluding processing services, of US$0.88 per watt ("W") and the continued growth of the Company's module business.
Gross Profit (Loss) 4Q10 3Q10 4Q09 Q-o-Q% Y-o-Y% Gross Profit (Loss) (US$mln) $119.3 $116.7 ($1.1) 2.2% - ------------------- ------ ------ ----- --- --- Gross Margin 30.9% 32.5% (0.6%) - - ------------ ---- ---- ------ --- ---
The sequential decrease in gross margin was primarily due to increased module sales among the Company's total revenue mix.
Operating Income (Loss) 4Q10 3Q10 4Q09 Q-o-Q% Y-o-Y% Operating Expenses (US$mln) $33.4 $30.3 $19.4 10.1% 72.4% Operating Income (Loss) (US$mln) $85.9 $86.4 ($20.5) (0.6%) - ----------------------- ----- ----- ------ ------ --- Operating Margin 22.2% 24.1% (11.4%) - - ---------------- ---- ---- ------- --- ---
Sequential increases in operating expenses were primarily due to a US$5.1 million increase in other expenses as a result a one-off sale of recyclable polysilicon accumulated during the Company's early years of operation when it was producing wafers using reclaimed polysilicon. Operating expenses represented 8.6% of total revenues in Q4 2010, in line with 8.5% in Q3 2010.
Net Income (Loss) Attributable to Holders of Ordinary Shares 4Q10 3Q10 4Q09 Net Income (Loss) (US$mln) $61.0 $60.1 ($28.1) Diluted Earnings (Loss) Per Share $0.34 $0.35 ($0.16) --------------------------- ----- ----- ------ Diluted Earnings (Loss) Per ADS $0.69 $0.70 ($0.33) --------------------------- ----- ----- ------
In Q4 2010, the Company also recognized a US$10.1 million gain in the fair value of foreign exchange forward contracts entered into to hedge foreign currency risks. The Company also recognized a write-back of deferred tax assets of US$5.5 million in Q4 2010 to adjust deferred tax credit accumulated in 2009, resulting in an inflated effective tax rate of 30.4% for Q4 2010.
Full Year 2010 Results Solar Wafer and Module Shipments FY10 FY09 Y-o-Y% Total Solar Wafer and Module Shipments (MW) 1,182.8 526.6 124.6% Wafer Shipments (MW) 887.6 495.3 79.2% -------------------- ----- ----- ---- Module Shipments (MW) 295.2 31.3 843.1% --------------------- ----- ---- ----- Net Revenues FY10 FY09 Y-o-Y% ---- ---- ------ Net Revenues (US$mln) $1,205.6 $510.4 136.2% --------------------- -------- ------ -----
Record revenues for the full year 2010 were driven by higher wafer ASPs than anticipated and strong growth in the Company's module business.
Gross Profit (Loss) FY10 FY09 Gross Profit (Loss) (US$mln) $348.0 ($43.2) ------------------- ------ ------ Gross Margin 28.9% (8.5%) ------------ ---- ------
The significant improvement in the Company's gross margin from negative 8.5% for the full year 2009 to positive 28.9% for the full year 2010 was driven by an overall wafer processing cost reduction to US$0.24/W and a large decrease in polysilicon cost to between US$55 per kilogram ("kg") and US$60/kg.
Operating Income (Loss) FY10 FY09 Y-o-Y% Operating Expenses (US$mln) $102.0 $47.4 115.4% Operating Income (Loss) (US$mln) $245.9 ($90.6) - ----------------------- ------ ------ --- Operating Margin 20.4% (17.7%) - ---------------- ---- ------- ---
Increases in operating expenses were primarily due to increases in R&D and SG&A expenses in accordance with sales.
Net Income (Loss) Attributable to Holders of Ordinary Shares FY10 FY09 Net Income (Loss) (US$mln) $169.0 ($71.9) Diluted Earnings (Loss) Per Share $0.97 ($0.49) --------------------------------- ----- ------ Diluted Earnings (Loss) Per ADS $1.93 ($0.98) ------------------------------- ----- ------ Business Highlights Wafer Business
ReneSola's wafer business achieved over 30% gross profit margin for a third consecutive quarter in Q4 2010, supported by growing demand for the Company's wafers and substantial cost reductions by the Company. In Q4 2010, ReneSola reduced its non-silicon wafer processing cost to US$0.24/W and managed its polysilicon raw material cost to US$55/kg to US$60/kg, well below the average polysilicon spot price for the quarter. The Company's prudent control over raw material procurement coupled with in-house polysilicon production capabilities have led to steady polysilicon input prices that have provided protection against rising polysilicon spot prices. The Company will continue its cost reduction efforts through advancements in technology and manufacturing.
As announced earlier this year, the Company has developed a new multicrystalline wafer, the Virtus Wafer. The Virtus Wafer, which achieves an average cell conversion efficiency rate of 17.5%, more than 1% higher than the industry standard. The Company expects to commence pilot production of the wafer this year.
The Company has over 20 long-term wafer contracts lasting for periods of one to five years and totaling 1.3 GW for 2011, which represents all of the Company's expected wafer shipments for 2011.
Module Business
The Company continues to expand its downstream module business. In Q4 2010, the Company delivered record module shipments of 126.8 MW with an ASP excluding processing services of US$1.85/W, driven primarily by strong market demand. The Company remains confident in the potential of its downstream business, seeking both branded and non-branded opportunities.
Polysilicon Update
The Company's Sichuan polysilicon plant began to contribute to profitability in the fourth quarter, supporting wafer demand through increased production and improving margins through reduced production cost. In Q4 2010, the Company produced approximately 610 metric tons ("MT") of polysilicon, an increase of 126.8% from approximately 269 MT in Q3 2010. The Company's polysilicon production cost was between approximately US$55/kg to US$60/kg during Q4 2010. Production cost has been further reduced to US$52/kg with 201 MT of production in January 2011 and US$45/kg with 246 MT of production in February 2011.
The Company is on target to produce 700 MT to 800 MT with an average production cost of approximately US$45/kg in Q1 2011. As the Company moves towards its goal to produce 3,500 MT and reduce production cost to US$35/kg by the end of 2011, it believes it will be significantly shielded from polysilicon procurement risk The Company plans to build an additional 5,000 MT of polysilicon production capacity, bringing total capacity to 8,500 MW, in order to meet the growing demand of polysilicon requirement as the Company expands its wafer capacities to 1.9 GW in 2011.
Strong Operating Cash Flows and Cash Position
The Company generated strong operating cash inflow of US$116.1 million in Q4 2010, bringing total operating cash inflow to US$403.2 million for the full year 2010. Net cash and cash equivalents plus restricted cash was US$324.3 million at the end of Q4 2010, compared to US$286.6 million in Q3 2010, while total debt was reduced from US$542.2 million in Q3 2010 to US$522.3 million in Q4 2010.
Capital expenditure spending was US$56.3 million for Q4 2010 and US$140.9 million for the full year 2010, resulting in free cash flow of US$262.3 million for the full year 2010. Short-term borrowings increased from US$353.6 million in Q3 2010 to US$400.8 million in Q4 2010 primarily due to US$93.8 million of long-term borrowings maturing at the end of 2011. Short-term borrowings consist of US$117.9 million in trade finance, US$189.1 million in short term revolving short-term facilities and US$93.8 million as the short-term portion of the long-term debt
2011 Capacity Expansion Plans and Related CAPEX
The Company expects to spend US$350 million in 2011 to expand wafer production capacity from the current 1.3 GW to 1.9 GW while increasing module production capacity from the current 400 MW to 600 MW and expanding polysilicon production from the current 3,000 MT to 8,500 MT, approximately 500 MT of which the Company does not expect to incur additional capital expenditure, as it will be achieved through de-bottlenecking of existing facilities.
AIM Cancellation
The Company cancelled its admission to trading on the Alternative Investment Market ("AIM") of the London Stock Exchange on November 30, 2010.
Company Appoints New President of JC Solar and New VP of Internal Control and Audit
The Company recently appointed Dr. Panjian (Paul) Li as senior vice president of ReneSola and president of Wuxi Jiacheng Solar Energy Technology Co., Ltd. ("JC Solar"), the Company's wholly-owned subsidiary which produces solar cells and modules. As president of JC Solar, Dr. Li, formally ReneSola's chief operating officer, will help lead the Company as it expands its downstream capabilities. Dr. Li will continue to contribute to the Company's overall strategy and business development through his role as senior vice president.
The Company recently appointed John Ding as vice president of internal control and audit. Mr. Ding previously served as director of internal control and audit for ReneSola since 2009. With nearly twenty years of work experience in finance, including more than ten years of management experience and over five years of internal control and audit experience at US-listed companies, Mr. Ding has comprehensive knowledge in accounting, tax policies, credit control and physical asset management. Before joining ReneSola, Mr. Ding served as director of internal audit and SOX compliance at The9 Limited from 2008 to 2009 and held positions in credit, tax and internal control departments at Dell (China) Co., Ltd. from 2003 to 2008. Mr. Ding received a bachelor's degree in international economics and trade from Fudan University as well as a master's degree in professional accounting from Xiamen University. He holds CIA and CCSA certificates.
Outlook
For Q1 2011, the Company expects total solar wafer and module shipments to be in the range of 320 MW to 330 MW, revenues to be in the range of US$310 million to US$330 million and gross profit margin to be in the range of 30% to 32%.
For the full year 2011, the Company expects total solar wafer and module shipments to be in the range of 1.6 GW to 1.7 GW, representing an increase of 35% to 44% year-over-year.
Conference Call Information
ReneSola's management will host an earnings conference call on Tuesday, March 1, 2011 at 8 am U.S. Eastern Daylight Time / 9 pm Beijing/Hong Kong time.
Dial-in details for the earnings conference call are as follows: U.S. / International: +1-617-213-8896 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 March 8, 2011:
International: +1-617-801-6888 Passcode: 32962394
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 is a leading global manufacturer of solar wafers and producer of solar power products based in China. Capitalizing on proprietary technologies, economies of scale, low-cost production capabilities and technological innovations and know-how, ReneSola leverages its in-house virgin polysilicon and solar cell and module production capabilities to provide its customers with high-quality, cost-competitive solar wafer products and OEM services. The Company possesses a global network of suppliers and customers that includes some of the leading global manufacturers of solar cells and modules. ReneSola's American depositary shares are traded on the New York Stock Exchange .
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 the Company describes what it "believes," "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. 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 China: Ms. Feng Qi ReneSola Ltd Tel: +86-573-8477-3903 E-mail: feng.qi@renesola.com Mr. Derek Mitchell Ogilvy Financial, Beijing Tel: +86-10-8520-6284 E-mail: derek.mitchell@ogilvy.com In the United States: Ms. Jessica Barist Cohen Ogilvy Financial, New York Tel: +1-646-460-9989 Email: jessica.cohen@ogilvypr.com RENESOLA LTD Unaudited Consolidated Balance Sheet (US dollars in thousands) December September December 31, 30, 31, 2010 2010 2009 ASSETS Current assets: Cash and cash equivalents 290,702 211,586 106,808 Restricted cash 33,640 75,051 25,266 Available for sale investment 3,332 3,512 6,207 Trade receivable, net of allowances for doubtful receivables 81,540 120,366 107,987 Inventories , net of inventory provisions 170,599 163,629 137,844 Advances to suppliers, current portion 26,315 41,898 12,092 Amounts due from related parties 389 401 440 Value added tax recoverable 44,102 40,409 51,843 Prepaid expenses and other current assets 16,946 15,620 7,326 Deferred convertible bond issue costs - - 86 Derivative assets 11,660 - - Deferred tax assets, current portion 14,763 22,155 24,325 Total current assets 693,988 694,627 480,224 Property, plant and equipment, net 801,472 786,025 702,816 Prepaid land rent, net 37,189 25,707 23,137 Other intangible assets - 553 1,349 Deferred tax assets, non-current portion 8,526 18,948 40,227 Advances to suppliers, non-current portion 13,743 - 8,072 Advances for purchases of property, plant and equipment 26,930 15,871 20,840 Other long-term assets 2,753 2,881 2,840 Goodwill 5,323 5,323 5,323 ----- Total assets 1,589,924 1,549,935 1,284,829 ========= ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term borrowings 400,798 353,558 358,634 Accounts payable 220,798 209,409 93,406 Advances from customers, current portion 57,396 82,356 53,852 Amounts due to related parties 25 24 24 Other current liabilities 79,633 96,861 67,804 Income tax payable 12,417 - 3,586 Deferred tax liabilities 1,778 - 70 Derivative liabilities 1,381 2,426 - Convertible bond payable, current portion - - 32,475 --- ------ Total current liabilities 774,226 744,634 609,851 Long-term borrowings 121,515 188,596 189,279 Advances from customers, non-current portion 76,080 82,821 78,578 Other long-term liabilities 31,638 20,660 10,858 ------ Total liabilities 1,003,459 1,036,711 888,566 --------- --------- ------- Shareholders' equity Common shares 422,039 415,001 413,753 Additional paid-in capital 19,858 22,995 21,065 Retained earnings/accumulated deficits 108,387 47,342 (60,609) Accumulated other comprehensive income 36,181 27,886 22,054 ------ ------ Total equity 586,465 513,224 396,263 Total liabilities and equity 1,589,924 1,549,935 1,284,829 ========= ========= ========= RENESOLA LTD Unaudited Consolidated Statements of Income Data (US dollar in thousands, except ADS and share data) Three Months Ended December 31, September December 31, 2010 30, 2010 2009 Net revenues 386,445 358,704 179,885 Cost of revenues (267,167) (241,964) (180,989) Gross profit 119,278 116,740 (1,104) ------- ------- ------ GP% 30.9% 32.5% (0.6%) Operating expenses: Sales and marketing (2,789) (2,330) (2,034) General and administrative (9,316) (15,900) (14,816) Research and development (13,336) (9,300) (2,859) Other general (expense) income (7,950) (2,806) 336 Total operating expenses (33,391) (30,336) (19,373) ------- ------- ------- Income (loss) from operations 85,887 86,404 (20,477) ------ ------ ------- Non-operating (expenses) income: Interest income 918 438 815 Interest expense (6,779) (6,199) (4,951) Foreign exchange gain (loss) (1,472) 582 (495) Gain on repurchase of convertible bonds - - 2,642 Other-than-temporary impairment loss on available-for-sale investment - - (13,367) Fair value change on derivative assets and derivative liabilities 10,067 (492) - Investment loss (875) (2,578) - Total non-operating (expenses) income 1,859 (8,249) (15,356) ----- ------ ------- Income (loss) before income tax 87,746 78,155 (35,833) ------ ------ ------- Income tax benefit (expense) (26,701) (18,041) 7,707 Net income (loss) attributed to holders of ordinary shares 61,045 60,114 (28,126) ====== ====== ======= Earnings (Loss) per share Basic 0.35 0.35 (0.16) Diluted 0.34 0.35 (0.16) Earnings (Loss) per ADS Basic 0.70 0.70 (0.33) Diluted 0.69 0.70 (0.33) Weighted average number of shares used in computing earnings per share Basic 173,334,992 172,767,742 171,277,086 Diluted 176,978,324 172,921,501 171,277,086 RENESOLA LTD Unaudited Consolidated Statements of Income Data (US dollar in thousands, except ADS and share data) For the year ended Dec. 31, 2010 2009 Net revenues 1,205,579 510,405 Cost of revenues (857,615) (553,607) Gross profit (loss) 347,964 (43,202) ------- ------- GP% 28.9% (8.5%) Operating expenses: Sales and marketing (8,360) (5,399) General and administrative (43,314) (29,084) Research and development (36,263) (14,507) Other general (expense) income (14,083) 1,633 ----- Total operating expenses (102,020) (47,356) -------- ------- Income (loss) from operations 245,944 (90,558) ------- ------- Non-operating (expenses) income: Interest income 1,835 1,716 Interest expenses (23,245) (17,122) Foreign exchange loss (1,814) (1,433) Gain on repurchase of convertible bonds 6 7,995 Other-than-temporary impairment loss on available-for-sale investment - (13,367) Fair value change on derivative assets and derivative liabilities 9,428 - Investment income (3,160) - Total non-operating (expenses) income (16,950) (22,211) ------- ------- Income (loss) before income tax and equity in loss of investee 228,994 (112,769) ------- -------- Income tax benefit (expense) (59,998) 41,156 Equity in loss of investee, net of tax - (291) Net income (loss) attributed to holders of ordinary shares 168,996 (71,904) ======= ======= Earnings (Loss) per share Basic 0.98 (0.49) Diluted 0.97 (0.49) Earnings (Loss) per ADS Basic 1.96 (0.98) Diluted 1.93 (0.98) Weighted average number of shares used in computing earnings per share Basic 172,870,921 147,553,679 Diluted 175,111,730 147,553,679 RENESOLA LTD Unaudited Consolidated Statements of Cash Flow (US dollar in thousands) Six Months Six Months Six Months ended Dec ended Jun ended Dec 31, 30, 31, 2010 2010 2009 Operation activity: Net income (loss) 121,159 47,837 (38,296) Adjustment to reconcile net income to net cash used in operation activity: Equity in earnings of investee - - - Investment gain 3,160 - - Inventory write-down 1,165 - 3,206 Depreciation and amortization 32,008 24,346 19,288 Amortization of deferred convertible bond issuances costs and premium - 332 2,085 Allowance of doubtful receivables and advance to suppliers 1,958 1,961 9,242 Change in fair value of derivatives (9,575) 147 - Share-based compensation 2,575 1,360 1,435 Loss on disposal of long-lived assets 1,120 133 (1) Gain from repurchase of convertible bonds - (6) (2,642) Gain from advance restructuring - - (555) Other-than-temporary impairment loss on available-for-sale investment - - 13,367 Changes in operation assets and liabilities: Accounts receivables 21,772 5,114 (72,610) Inventories (2,572) (25,861) 12,525 Advances to suppliers (24,524) (7,859) 4,509 Amounts due from related parties 33 31 9 Value added tax recoverable 1,486 7,791 (14,295) Prepaid expenses and other current assets (6,667) (4,463) (2,282) Prepaid land use right 10,768 404 423 Accounts payable 25,186 96,277 35,069 Advances from customers (9,858) 8,496 (25,554) Income tax payable 9,555 - 153 Other current liabilities 21,087 (2,153) (1,552) Other long-term liabilities (1,194) 1,055 (472) Accrued warranty cost 4,120 1,141 496 Deferred taxes 32,034 12,291 (6,324) Net cash from (used in) operation activities 234,796 168,374 (62,776) Investing activities: Purchases of property, plant and equipment (84,153) (53,562) (194,060) Advances for purchases of property, plant and equipment (12,900) 6,083 114,105 Purchases of other long-term assets 1,119 67 (964) Cash received from government subsidy 2,408 - - Proceeds from disposal of property, plant and equipment 99 51 - Proceeds from disposal of investment - - - Restricted cash 42,308 (49,631) 32,764 Cash consideration for acquisition - - - Net proceeds from redemption of financial assets (3,239) 79 - Net cash used in investing activities (54,358) (96,913) (48,155) Financing activities: Proceeds from borrowings 217,331 447,676 330,412 Repayment of bank borrowings (286,010) (422,239) (290,240) Proceeds from issuance of common shares - - 73,625 Cash paid for issuance cost 252 (252) (5,265) Proceeds from exercise of stock options 2,841 304 - Cash paid for repurchase of convertible bonds - (32,715) (64,340) --- ------- ------- Net cash provided by (used in) financing activity (65,586) (7,226) 44,192 Effect of exchange rate changes 4,642 165 4 Net increase (decrease) in cash and cash equivalent 119,494 64,400 (66,735) Cash and cash equivalent, beginning of year 171,208 106,808 173,543 Cash and cash equivalent, end of year 290,702 171,208 106,808 For the year ended December 31 2010 2009 Operation activity: Net income (loss) 168,996 (71,904) Adjustment to reconcile net income to net cash used in operation activity: Equity in earnings of investee - 291 Investment gain 3,160 - Inventory write-down 1,165 71,253 Depreciation and amortization 56,354 32,745 Amortization of deferred convertible bond issuances costs and premium 332 3,511 Allowance of doubtful receivables and advance to suppliers 3,919 9,873 Change in fair value of derivatives (9,428) (1) Share-based compensation 3,935 3,296 Loss on disposal of long-lived assets 1,253 13 Gain from repurchase of convertible bonds (6) (7,995) Gain from advance restructuring - (555) Other-than-temporary impairment loss on available-for-sale investment - 13,367 Changes in operation assets and liabilities: Accounts receivables 26,886 (62,659) Inventories (28,433) (1,721) Advances to suppliers (32,383) 23,888 Amounts due from related parties 64 (11,807) Value added tax recoverable 9,277 (33,377) Prepaid expenses and other current assets (11,130) 5,041 Prepaid land use right 11,172 440 Accounts payable 121,463 38,023 Advances from customers (1,362) (23,220) Income tax payable 9,555 153 Other current liabilities 18,934 1,429 Other long-term liabilities (139) (472) Accrued warranty cost 5,261 561 Deferred taxes 44,325 (43,851) Net cash from (used in) operation activities 403,170 (53,678) Investing activities: Purchases of property, plant and equipment (137,715) (358,084) Advances for purchases of property, plant and equipment (6,817) 132,291 Purchases of other long-term assets 1,186 (1,411) Cash received from government subsidy 2,408 5,959 Proceeds from disposal of property, plant and equipment 150 - Proceeds from disposal of investment - (635) Restricted cash (7,323) (18,958) Cash consideration for acquisition - (16,831) Net proceeds from redemption of financial assets (3,160) - Net cash used in investing activities (151,271) (257,669) Financing activities: Proceeds from borrowings 665,007 767,192 Repayment of bank borrowings (708,249) (445,677) Proceeds from issuance of common shares - 73,625 Cash paid for issuance cost - (5,265) Proceeds from exercise of stock options 3,145 - Cash paid for repurchase of convertible bonds (32,715) (84,121) ------- ------- Net cash provided by (used in) financing activity (72,812) 305,754 Effect of exchange rate changes 4,807 68 Net increase (decrease) in cash and cash equivalent 183,894 (5,525) Cash and cash equivalent, beginning of year 106,808 112,333 Cash and cash equivalent, end of year 290,702 106,808
PRN Photo Desk, photodesk@prnewswire.com
ReneSola Ltd
CONTACT: In China: Ms. Feng Qi, ReneSola Ltd at +86-573-8477-3903 or
feng.qi@renesola.com; Mr. Derek Mitchell, Ogilvy Financial, Beijing at
+86-10-8520-6284 or derek.mitchell@ogilvy.com; In the United States: Ms.
Jessica Barist Cohen, Ogilvy Financial, New York at +1-646-460-9989 or
jessica.cohen@ogilvypr.com
Web Site: http://www.renesola.com/
