ReneSola has announced its financial results for the first quarter of 2015. Although the PV module shipment increased 1.6% from the previous quarter, 4Q14, other indexes represented a business decline of the company.

During 1Q14, ReneSola’s net revenues were US$349 million, representing a 0.98% decrease from US$387 million in 4Q14 and a 15.9% decrease from US$415 million in 1Q14. The gross profit and gross margin dropped both Q-o-Q and Y-o-Y. The gross profit dropped from US$51.2 million in 4Q14 and from US$44 million in 1Q14 down to US$36.7 million. The gross margin in the quarter was 10.5%, compared to 13.2% in 4Q14 and 10.6% in 1Q14.

Furthermore, the debt ratio worsened to 92.36% in the quarter, higher than 91% in full year 2014 and 92% in full year 2013.

“Quarterly revenue and gross margin were lower than guidance mainly due to continued headwind from foreign exchange fluctuations, a decrease in module ASPs, and a delay in revenue recognition of a UK project,” noted in ReneSola’s financial report.

ReneSolar stepped back from the EU-China Minimum Import Price (MIP) agreement when a new phase of dispute emerged earlier this year, causing the company to operate under lower profit in the European market than before.

First Quarter 2015 Financial and Operating Highlights

• Total solar module shipments were 496.4 MW, representing an increase of 1.6% from Q4 2014. Total solar wafer and module shipments in Q1 2015 were 691.5 MW, compared to 744.3 MW in Q4 2014, and 710.1MW in Q1 2014.
• Net revenues were US$349.0 million, representing a decrease of 9.8% from US$387.0 million in Q4 2014, and a decrease of 15.9% from US$415.0 million in Q1 2014.
• Gross profit was US$36.7 million with a gross margin of 10.5%, compared to gross profit of US$51.2 million with a gross margin of 13.2% in Q4 2014, and gross profit of US$44.0 million with a gross margin of 10.6% in Q1 2014.
• Operating loss was US$9.5 million with an operating margin of negative 2.7%, compared to an operating loss of US$2.2 million with an operating margin of negative 0.6% in Q4 2014, and an operating loss of US$8.7 million with an operating margin of negative 2.1% in Q1 2014.
• Net loss attributable to holders of ordinary shares was US$18.0 million, representing basic and diluted loss per share of US$0.09 and basic and diluted loss per American depositary share ("ADS") of US$0.18.
• Cash and cash equivalents plus restricted cash totaled $228.1 million as of the end of Q1 2015, compared to US$221.7 million as of the end of Q4 2014, and US$214.9 million as of the end of Q1 2014.
• Net cash outflow from operating activities was US$9.0 million compared to net cash inflow from operating activities of US$41.9 million in Q4 2014, and net cash outflow from operating activities of US$112.3 million in Q1 2014.