ReneSola Ltd (“ReneSola” or the “Company”) (NYSE: SOL), a leading global manufacturer of solar products, announced its unaudited financial results for the quarter ended September 30, 2011.
“Challenging global market conditions continued to impact our business in the third quarter of 2011,” said Mr. Xianshou Li, ReneSola’s chief executive officer.
“Oversupply and weakened demand led to substantial decreases in solar wafer and module prices, which negatively impacted our revenues and margins for the quarter. However, we continued to execute on our cost-reduction strategy and are confident we will remain the industry leader in cost-competitive wafer manufacturing. We have also begun to explore the systems business in China, and have conducted preliminary work on a project in Qinghai. Given the potential opportunities for high returns within the systems business in China, we will examine carefully and evaluate opportunities in this area. At the same time, we will continue to focus on wafer manufacturing while considering other investment opportunities to position ourselves favorably once macro conditions stabilize.”
Third Quarter 2011 Financial and Operating Highlights:
*Total solar product shipments in Q3 2011 were 328.5 megawatts (“MW”), compared to 295.5 MW in Q2 2011.
*Q3 2011 net revenues were US$189.1 million, compared to US$249.3 million in Q2 2011.
*Q3 2011 gross loss was US$7.7 million, compared to gross profit of US$45.9 million in Q2 2011.
*Q3 2011 gross margin was negative 4.0%, which includes a non-cash inventory write-down of US$19.4 million, compared to 18.4% in Q2 2011.
*Q3 2011 operating loss was US$34.5 million, compared to operating income of US$23.2 million in Q2 2011.
*Q3 2011 net loss was US$8.2 million, representing basic and diluted losses per share of US$0.05, and basic and diluted losses per American depositary share (“ADS”) of US$0.09.
*Cash and cash equivalents plus restricted cash were US$450.3 million as of September 30, 2011, compared to US$480.8 million as of June 30, 2011.