ReneSola announced the financial results of the second quarter of 2014. The gross margin in the quarter was 14.7% thanks to fundamental improvements to the company’s business operations as well as a more competitive business model.
During 2Q14, ReneSola shipped 498.7MW of PV modules, decreasing 4.3% compared to 1Q14 yet increasing 14.9% compared to 2Q13. The wafer shipments were 199.6MW, and the total solar wafer and module shipments were 698.3MW, compared to 849.3MW in 2Q13 and 710.1MW in 1Q14. According to ReneSola’s guidance, the module shipment should be 480~500MW. The sequential decrease in PV module shipment was mainly resulted from decreased shipments to US and Europe.
Regarding incomes, the net revenues decreased due to less module shipments. The net revenues in 2Q14 were US$387.1 million, compared to US$415 million in 1Q14. However, the company’s gross margin increased from 1Q14’s 10.6% to 14.7%, this was a result of full-capacity in-house polysilicon production, more efficient operational process control, and a price drop of Taiwan-made cells.
For Q3 2014, the Company expects its total solar module shipments to be in the range of 530 MW to 550 MW, and its gross margin to be in the range of 15% to 17%.
Highlights:
- Total solar module shipments were 498.7 MW, compared to 434.1 MW in Q2 2013 and 521.1 MW in Q1 2014. Total solar wafer and module shipments were 698.3 MW, compared to 849.3 MW in Q2 2013 and 710.1 MW in Q1 2014.
- Net revenues were US$387.1 million, compared to US$377.4 million in Q2 2013 and US$415.0 million in Q1 2014.
- Gross profit was US$56.9 million with a gross margin of 14.7%, compared to gross profit of $30.4 million with a gross margin of 8.0% in Q2 2013 and a gross profit of US$44.0 million with a gross margin of 10.6% in Q1 2014.
- Operating income was US$10.6 million with an operating margin of 2.7%, compared to an operating loss of US$16.6 million with an operating margin of negative 4.4% in Q2 2013 and an operating loss of US$8.7 million with an operating margin of negative 2.1% in Q1 2014.
- Net income attributable to holders of ordinary shares was US$0.8 million, representing basic and diluted income per share of US$0.00 and basic and diluted income per American depositary share ("ADS") of US$0.01.
- Cash and cash equivalents plus restricted cash totaled $218.8 million as of the end of Q2 2014, compared to US$405.8 million as of the end of Q2 2013 and US$214.9 million as of the end of Q1 2014.
- Net cash outflow from operating activities was US$40.6 million, compared to net cash inflow from operating activities of US$65.5 million in Q2 2013 and net cash outflow from operating activities of US$112.3 million in Q1 2014.
