ReneSola (SOL) 2 Dec 222022 Q3 Earnings call transcript

Hello, ladies and gentlemen. Thank you for standing by for the ReneSola Power's Third Quarter 2022 Earnings Conference Call. Please note that we are recording today's conference call. I would now like to turn the call over to Mr. Yujia Zhai, Managing Director of the Blueshirt Group. Mr. ahead, go Please Zhai.

and and deck discuss Thank remarks. results. our letter we also during closed our operator, at reference our us There will on ir.renasolapower.com. We for our today shareholder is today market the to third supplemental after prepared available hello, you, on you website slide everyone. a joining released is posted Thank our quarter that XXXX website

Mr. Ke the North Liu, Officer; On with Chief Mr. and are me America. of Chief Yumin Mr. Chen, John call today CEO Officer; Financial Executive Ewen,

two. Before we continue, please turn to slide

Let made These future. include that may me current statements that remind other be might you Power’s the the forward-looking during this information for or estimates remarks represent call forward-looking. considered ReneSola predictions, judgment

in during that, this to conference date the Mr. otherwise not on update stated, to note, and Factors forward-looking these on and SEC. in Power figures with opinions only subject could materially. Please over place as Also, revisions they ReneSola that let to all me of do mentioned differ the now obligated any forward-looking are to unless filings reliance With reflect to is cause elsewhere Risk call risks these results statements. However, are under not statements, Power’s the call. Those which risks uncertainties U.S. ReneSola call of ReneSola dollars. Power’s please the turn described actual Yumin are undue Liu.

QX our strategic summary our to was joined well our today. the for in and our company provide one our $XX.X After results and and in high CEO, initiatives year quarters give our grew XX% year Beginning achieved and Yujia, financial third for $X XX.X% results Thanks, impact day, Revenue million. level strong We update net financial Q&A. recent you our ago. by as John that, over by performance, compared our QX elaborate of our guidance we'll with Then CFO, and will everyone. results from good of as detail. our Europe dollar, Ke, approximately best last results income review million an be then I’ll joining economic Thank end a high of was gross U.S. guidance. and $XXX,XXX $X three for call range and despite year a which earnings the negatively to China margin represents our years. outperformed challenges a revenue quarter million, these

million million recently September on These driven project Branston, exchange in performance would assets been over acquisition U.K. closed and impact, farm $X net PPA to prices the predictable cash transaction and value $XX was XX, will sales flows Europe which have regulatory nonrecourse million, our add cash strategy, total our beginning and energy which was European acquired China and this solar megawatt Branston business. This of trending revenue nearly XX conditions. product and Excluding finance. complement the across results in results $XX million acquisition IPP have income. favorable IPP of and and our shortages $XX solar We of was foreign stronger of U.S. $XX were pipeline the marks to in our even strongly with the solid stable by due been million project

will we of the XX, provide March multiyear fact, by which end $XX project attractive XXXX, In already through EBITDA have Branston for XXXX. million PPA signed over estimate we

under of projects. in including of provisions. with earn Branston, Emeren development of and solar out $XX to over storage gigawatts power addition and over have gigawatt stages, battery X megawatt we Emeren October cash of through Italian on acquisition over In based They X.X all company. projects utilities an projects million is solar completed scale storage an XX, deal the XXX different of

strategy, XXXX. IPP withhold originally NTP project European XXX in planned our sell in megawatt QX we and we at of sales stage Hungary to part of decided that Poland to As

projects by We the from remaining QX in income first gain will $XX and QX and sell in million these sale strategic we be million still two operate stable to in and IPP megawatt revenue will for forego to cash XXX Due our XXXX Poland period We impact, projects portfolio. the million $XX solar IPP significantly less, flows. In this expect of be now the retaining range but we IPP, future. estimate assets XX the approximately be to the revenues million unexpected now of October, Hungary or construct payback of XXXX. over of of in Because Hungary exchange will lifetime net while them to these full across $X million megawatt expect $XX IPP optionality and farms we $X $X our to years higher and and in shift the will foreign to shift revenue the energized XXXX, completed the four European million. to in year negative

We XX% to expect to be gross XXXX XX%. margin

year we income, $X will million anticipate full be to net approximately net income For $X million.

and XXXX about. we be have beyond, things many to excited to forward Looking

and We strong presence Europe we portfolios. and assets about energy supportive excited our government rising clean solar have markets, acquired demand, the to PPA in thanks growing are policies. fastest world's IPP growing growing newly prices In

have IPP this $XX million to of $XX megawatts and million XXX revenue million visibility good contribute projects EBITDA. $XX and to Poland and assets we million to $XX Hungary, in and XXXX Emeren into approximately Branston, expect For

or end. to in sale close We the and our develop, of process In build, term, are the China immediate China as year own strategy and develop, original we projects are certain Compared before of to monetizing China the in also IPP. to the the one near under strategy aligning the world own of expect rest strategy sell. the

X for total mid by believe we development project stage late achieve for We end and we of definitely gigawatts the pipeline our are ofXXXX. To looks great to positioned our company. adoption across well solar future on accelerating expect XXXX. bright conclude, are also of pipeline capitalize XXX approximately our world. solar the energy monetize we megawatt to For And business, targeting in to to a

Chen. Given our projects, unmatched partnerships, leading over to and we our solar deep of turn that, our projects, progressing solar With record extensive the in and financing our global Ke our in profitably well-capitalized developing monetizing industry steadily in network of our transactions developer a are and track balance closing operator. I'll now operating and CFO, sheet Ke? becoming call goal expertise

again Yumin. on call Thank thanks you, And joining the for today. us everyone

largely reminder, provider shareholder As by GAAP should non XXX% measures. was measures Revenue about up use operating our non in year, is project U.S., EPC was in and million from We included performance our the that in revenue and million driven by gross profit information $XX.X strong $X.X XX% was considered a development along letter. Poland $X.X a QX with and our because in $X.X sequentially gross the GAAP XX.X%. GAAP GAAP to investors year be business believe QX that up useful reconciliation assets. million, GAAP margin IPP million we over in solar The XXXX XXXX.

September operating common to $X.X QX Net $X.X QX operating attributable $X.XX project driven in compared used million ADS XXXX IPP Hungary ReneSola XXXX. operating used earnings by used shareholder Cash to share loss Branston. diluted Cash due on activity to in activity to ReneSola investing $X.X ADS used Singapore. diluted financing $XX.X compared primarily related NTP Power activity $X XXXX. was mainly and was transact were net used in in in $X.XX $XX and was million financing diluted was activity activity million QX Cash million, ADS activity were zero million of primarily acquisition Turning financial investing expenses Hungary was with used in -- were income of million, cash per and U.S. Poland, in in in XXXX expenses. QX of expenditure XXXX cash million to and net per $X.X to and $XX.X in repurchase Cash our million. X, Operating projects. per income for

balance Now sheet. the review let's

at due as share assets decrease Branston to $XXX was end and September construction project XXXX and of the Hungary. the of the to cash compared in QX, our Poland repurchases, $XXX XX, expenditure of to million The related Our primarily was capital balance XXXX. million acquisition the IPP

to debt to XX.X% as part QX compared a asset as nonrecourse increased at to QX in acquired XXXX result of of Our X.X% debt end of ratio Branston acquisition.

to net for revenue We expect XXXX margin be to Finally million million $XX to million. $X income to full and million, gross $XX $X XX% to year guidance. now XX% to be be

to to million $XX to QX, margin gross XX% expect and we $XX to XX%. be For be million revenue

for like we open Now up questions. please any to the ahead. would call go Operator,

Instructions] And Philip of from comes [Operator our line first Shen ROTH. from question the Certainly.

Your question please.

taking question. for my Thanks guys. Hey,

about talk those next balance in sounds guidance, know build the have of you I sell First plans XXXX. was one you might is megawatts haven't you on much on wondering year? by but if could keeping official end Europe and given XXX NPP you It like to sheet XXXX. how

So is other China year. sounds sold expectation to what's like for geographies? going the It the by this be

be out to that -- you know year? sale expect next in to well? megawatts expectations XXX the NPP the would as So are total NPP then U.S. question. for for expectations useful beyond what And assets build the take if Thanks taking on

year by of you, expect the XXXX. Phil. pipeline do gigawatts We thank X the close Hey, to with

pipeline. NPP in to We this at target also sell XXX megawatts

[indiscernible] a QX, Hungary. total -- XXX plan next year. and QX we the in megawatts existing That addition, of megawatts by already In to XX build end megawatts XX build include Branston the XXX to

means, megawatt XXX to and X go, megawatt numbers. all and And pipeline. Poland And XXX including we So that constructed of planned sales, being Hungary. regions: sales, have XXX Europe megawatts XXX is U.S., three the that megawatt and XXX IPP, are big China. those gigawatt megawatt including in

Great.

expected you'll recognize do that do QX China sold the China year? you in of you then And much then think IPP think ‘XX? or -- the sales? megawatts, in you Or megawatt And recognize all you'll XXX end Okay. do this of think in terms be how the is how is to by much

I three we'll use we to about applied the model The past, ‘XX. we IPP In mentioned, announced, China or will own, an we basis. and majority we ago, as do the China, Europe. as strategy, in on applied as like XX now similar months ago, in in same build and everything months it we change use will We say, two, U.S. the same we -- sell build or the be in But okay? -- develop, up

we in XXXX. China, of our So doing in process portfolios continue we product the will the setting so in year are first

cash Okay, either in Branston that great. and build XX to you mentioned XXX the invest Hungary. And spin that is for you equity incremental XXX that amount you of then XX in XXX? megawatts or What's Europe, the or expect on expect is would to the

we Hungary, of and in For the megawatt million will the and to million megawatts XX to XXX remaining $XX $XX megawatt Poland the additional XXX million. equity XX $XX of expect portion first another part in that take about

be million So additional the of the $XX equity will total for $XX the for injection projects. to total XXX million megawatts

Okay. modules and track and NTP, of Got not EPCs before your procurement then be strategy decisions you was in And you'll tracker. now Europe? Is charge to historically, because and your you will say procurers of make that to were sell fair in buyers the module at or it. it the

Yes general, the answer is no. and In yes.

to But time the XXX necessary of trackers Europe Hungary or sized projects fact, those we'll continue but self-develop a in XXX year, -- management, in acquire we we more in by XXXX, acquiring or EPC U.S. not XXXX, in the self-built Europe, we through on Europe built obligations. module our couple including in EPC have procurement XXXX and this doing and same making at do smaller couple working of M&A, and and to in operating those smaller continue procurement the and Poland That target megawatts is of build and China, megawatt XX have size we -- in are even the expect even end M&A megawatts XXXX. activities, In the Europe. the been a in or either -- major acquired go

lot might I the us a revenue And megawatts, next kind ask Yumin. You Thanks, gave but of us close less, close sold, another year? help if have you know know could then revenue. megawatts taken the was to one ‘XX? I XXX and wondering questions, of on European million for be can I assets generate If China understand I've (ph). Okay. S. guessing of be assets $XXX that will I the [dollar] could be you being you U. the the to but a should I'm what

in we bright So terms of ballpark XXXX? just $XXX so maybe close the revenue curious for if it's Thanks. to million? -- Are in

Those Emeren the sales line million, acquisition. XXXX number. the other yet. grow contribute around we $XX and the line give to Not also in and about, grow. plus in ready the to the acquisitions two it Europe IPP, really detail will now pipeline XXX forecast plus about from megawatts year absolutely as know plus release three, do revenue line, ready only mentioned, I'm the when Other number are but are and yet acquisitions XXXX. conclude not But we XXXX plus We I Branston, three XXX but we megawatts meantime, will help million do will and EBITDA we $XX both about, million EPC activities of $XX we at the we sales and top bottom another these today, it's in top talking that and talk we will

that. pass appreciate can Yumin. Thanks, I on. all taking and for my it questions I'll Thanks Okay.

you, Thank Phil.

next question H. comes moment the of next from One C. you. our line Thank And for Dayal Wainwright. question. from Amit our

Your question please.

Congrats Good the afternoon, you. Thank everyone. progress. all on

respect guidance will with upside XXXX, the that does this be assets? guidance? to XQ Just China in monetization the from Or for to the factor

as closing portfolio second first are are China. right now. the on we portfolio a And portion of the reflected we It in working it

to it be the of So is the understanding represents very, soon. portfolio very first closed

So is mode. negotiation one number. know still the the the in second we But

in guidance, the So guess, that's not right? I

That is right.

about And these in looking cost and recent we operating moving ownership forward? Okay. then IPP you. Thank going etcetera, changes costs towards more how just should then think acquisitions Europe, after at operating

for an we have operating whole people is expect Branston, a of do And so increase. all think cost it XX project, operating first don't of I we for Amit, lot Emeren, [indiscernible]. additional

would Again, we $X.X $X.X million expect between I that's cost. we're what again, only So and increase a operating small of expecting. say million,

Understood.

respect from be any Okay. recent strategic to thinking then should changes, implications these board that is And we with that there about?

change? ownership You about talk

Yes.

board have appointments, I towards know etcetera. the With [Multiple Speakers] you new etcetera. pointed cooperation,

is what be implications Delaware of cooperation, Moving still those that reading And in play? to changes? types these the into should we from

Okay.

then in in first Let which for Ke and will access. about the also the me part are we in process story is -- steps, the the of the process next kick

ago. change, And million plus of by bunch do a shares of Okay? founder is last repurchase at is, we Limited, ReneSola X as did We sorry, time. the earlier press one ownership or The Mr. share months from -- so controlled also we explained One of first have to the a from the release Singapore, the ownership like Mr. Li, changes. from -- month now sorry, the the company, Li’s shares. XX% million X goes X% about couple this

Shah, the our the CIO, Shah on appointed and side, Board Managing has Capital's other So Himanshu as also Director Board.

different to making committees addition, of that, to our Board. in top the In also are how On we restructured of investors. -- more moves how to our refund regions we considering report

especially ICC this. on I'll meeting to side, requirement, the other On the comment let Ke demand

Yes.

business first. out me point First of the Amit, let all,

look XXXX account majority Europe XX%. now, this If will for almost and you U.S., at our business you XXXX will quarter and business, our see that of revenues since

about in So continue direction. we that's our three strategic years to this business decision drive ago, the

to value shareholder here. in And become clearly also are, Shah So are renewable peer to the Chairman, driven with line Himanshu right even U.S. again, the again, fiber European again, which strategically and this our is energy. on structure the focused a more maybe, the forward. focus shareholder is the become with exceed for and market, better and U.S. going we to now make market we the requirement requirement And change also,

you. take questions I Thank offline. all now guys. have other That's I’ll my for Understood.

Thank you, Amit.

Schafer line of Donovan next Thank you. Our question Northland Capital. comes from Instructions] the from [Operator

question Your please.

I’m questions. for the airport sorry Thanks for right my now. noise. some taking guys. I'm Hey, background at

at revenue So to of just of fourth the -- first level retain like a a it at but delays saying them. clear level matter just question you're for be just seems I for have the a was that lower is so was project it -- of quarter. decision not the push corporate kind to It outs, the outlook was

is lower call, of additional made assets because assets. Was more because these you attractive PPA kind to this So revenue tranche to on. it on second hold an to on kind incremental desire hinted an of at we're of incremental hang hold you that this of quarter this then a And the to recognition. decided, hey, there's pricing an going

Here's an extra you of hang assets cluster Poland and to Hungary? in to want on

and want the we long not in reasons, price from the up, two active for player right, demand local going absolutely -- Europe, Europe term. importantly, IPP in those the PPA Europe see but great are farms tremendous more to an farms as Definitely, in a operating are You we solar give also we economic be the so the deals. owning us as solar ownership player returns only

sell speaking, will of about the them. months in decided six management So QX literally and keep those of ago to all not this megawatts year instead XXX

less we sale, XX Europe, that merchant pretty $XXX build in say, to a add under hour. -- already of those estimate the projects the than also now mentioned are not stable years. the way, and return four case, I counting next, than some really the in flow by IPP months. are significant have financing the So per megawatt the construction, on and four from earlier, the the this X PPA now. any used changing $XXX, we as curve payback NPP And company. And conservative years sale less is in price the the $XXX, this returns in to to good And But will construction under I some plan do to deals will cash them under are

lower weak because Donovan, euro. impact of lot of a is revenue currency reason for

that. want just I So point out to

euro. weak right, Right,

of then any some parts potentially sell are ask still Phil's you in those follow-up a way COD or of also on question because, wanted and of about you're kind if take projects kind And to strategy. of the for I seeing trends to do Okay. course, NTP the

to NTP think but favored I that COD, could sometimes. is happen

often so those think a So range U.S. kind been in around just the that. and $X. has and as But typically tend Europe of when are often sales $X.XX, of check-in changing, to of on I NTP so of kind a you're in doing lot to sales, $X.XX wanted being much COD

trends sale seeing As -- get you've COD a PPA update prices, been you're you just of a seeing you're doing an or doing been have NTP when sale? or and Kind to an there. talked about we've the lot changes ASPs significant but want I for kind what's of

I think you are…

maybe could on of could got if helpful? sort -- refer I that's scale to utility with size. perhaps you on And the you're if the those you sharing okay were megawatts, Pennsylvania the ASP more it, you all know

So think that [indiscernible] that's be in useful but up. traditionally, I maybe could lower ramp

fact, In details of the release really I cannot project. the

In regions number U.S. a watt general, be mentioned in watt normally or per example, will utility okay? For scale or big price, a Europe the deals But lower, smaller normally -- sounds concept. you okay? one, like the some smaller That's in sales. deal enjoys price countries Pennsylvania per some better big

goes price high. Another in one which Europe, PPA the price that very sales very is, drives turn normal cases the high in in

typical megawatt. watt million normally say to to $X.XX. from, are very the the or into million from it's per per is That's And You right, on use structure U.S. But $X that as of COD it. NTP, in to say, in to as million to you equity the price. little much also cents, Europe, the different, put go offering let's $X.X megawatt when Europe per a $X.XX in that bit are a by easy payment million $X.X that could people $X

farm. country. different have wary to solar also really a a of rent and really, from And from the functions country It big Okay? the

For price to the $XXX industrial end, as megawatt. example, $XXX the in per can sales NTP be Italy, as high

go and Okay. the on sales all farmland, also No, up countries in sorry, be XXX,XXX. can general, Hungary, average. price other in $XXX,XXX I'm to And all different numbers the for of But around -- those But per $XXX,XXX side in average is other the one Poland megawatt. countries. it

lagging kind lagging of Because [Multiple a it -- Speakers] Right. it's probably on PPAs of Okay. follows just a sort basis

have another good the next the that are Donovan, module And noticed we will continuously as of down comes price and our couple is, help do -- have do our and months acquiring driving Look, down. will coming more we do we down. chain EPC that it procuring seen IPP That go year, thing have modules activities we we profitable. supply initiative, the in last QX further help forecast also is starting

I Donovan, much U.S. solar mentioned projects, for here. much, just is communities than you add price higher the will

we so also U.S. right community have here pretty -- our good the pricing So in business now. is

can if last Okay, great. question. I one squeeze just in And

of guys the I Yumin, ago correctly, For if for back the these July, Canadian. guess was it before, recall I Recurrent that by Recurrent but not was in partnered half be at work them now. you this a team, would guess, a And Emeren, to I I or required with back a you think, year and used with guys couple July,

you're But or of deposits, there early these down stage, late then need mid you site. whatnot. to secure down they kind of pretty like familiarity? go where, of a there's sort good cash where them two, as and like interconnection on did more of is -- you meaningful have with land kind small understand -- for remind can of maybe gives on the two to because, with to of a are just that you in kind kind So a good could some what kind and stage sort of match put And guess, were what I the there's I from land you this to and there they questions the then rights this of Italy whatnot sort me put pretty move background familiarity it, of deposits here owners one it you to grab seems --

of party, you to cash -- healthy what if to like what So you what cash bringing part will kind you're of of are it the have will. the requirements balance, seems You part bringing but that's have? the that

to XX going So how [indiscernible] of help there need the the over next be it? kind cash what today months, frame move forward to months, XX would are you

let me couple a the legal question to your used two, work right, are the you the finance address three of Okay. separately. and guys driving key all the of company One founder and questions company in -- is, development, me the when And developing back I projects. Solar. we for with run summer year. us the their well, since region XX trust they EMEA for Canadian started know capabilities And months we them absolutely ago, to partnership last

to The the structure important second point local with us. is a partnering the develop it's point three we to those better is market team market. been when very go up that to and that, or of to for and Italy believe is the Emeren, And to solar this market, thinking Italy we one why driving We've local join Europe. top in hiring build

that the So conclusion acquisition. to the of comes

Another the that a example, and another DSA your point And work turn five DSA in we short has as we cash on minimal. meaningful need SA develop the the which those They stores also we Literally one, have agreement. structure, do partnerships. internally pipelines, internal some land the megawatts is. site sometime XXX is hours, decided pipelines megawatt, acquisition, the pipeline. term that do the really need storage two short for before only okay? megawatt DSA partners. partners solar say that and XX,XXX term, interconnection. not acquisition after to this also in megawatts our four, we about with flow. XXX other is such, then will located we structure we pretty three. not is Emeren is but XXX that, milestone cash the partners. for the unique cash But have Emeren, speaking, about development they two, This Italy they need achievements, answers really of they And developed to projects are time, for [indiscernible] very question the joined on based milestone zero, the will pay DSA same the And at the five is Emeren’s before All service DSA company, development. have partners the So how

guys. you, take rest offline. Okay, And my of great. Yumin. Thank Thanks I'll questions the

you, Thank Donovan.

Thank you.

for next Thank the And our Molchanov Pavel you. our Raymond from moment of question from line next comes One James. question.

Your question please.

the Thanks for taking questions.

power from the operate plants start in Is these imposing. to assets financial gap have and there regulations? more that price any these EU UK about on Europe, own you thinking and of in any separately As your suppose in the I impact governments are IPP you

situation I question, that uncertain. the say Great still is Pavel. will

day other U.K. We day, oh, it current have news affirmatively potential especially have not news reflected say, us one can't gaps. say we price considered we in -- all. news do the the us those impact all really But at to will

Pavel, less four -- earlier The decided As based not Hungary. I the on but of mentioned, our aggressive that say is curve keep that we years payback IPPs is we part in sell, not the time and than merchant power price.

we ‘XX, far the XXX conservatively they signed gaps. in in will per by we term, thing, PPAs cash pretty also secure model not not potential XXX, ‘XX the And [indiscernible] long to and In price we K. be U. the megawatt to are impacted. use our should by to As very curve as term vastly PPAs Branston those And know UK consideration flow. nice gaps. market not -- are be But come PPA good hour. same -- impacted reasonable the be under for price the is still for price merchant long the multiyear a executed

helpful. That's Okay.

Turning to U.S. opportunities. the

scale every restrictions (ph), on imports the You China. are watching and utility -- the from [indiscernible] like [ADCVD] developer

importing assets? any in you general sense, having are question modules ask to just the your for So a difficulty

I CEO. the in do our any will turn John, to not U.S. one procurement do But America, North this as we you know,

care ABCVD absolutely or please? we issues. any John, about case Although labor forced

that. echo I mean, just I would Yes.

Yumin think, I answer the is answer.

same thing chain Although of same COVID's started as and it's the type answers prices pushed when the COVID up. -- it's supply when

-- maintained ever, you insulated. without it's saying piece still somewhat of And projects can't solar of forever and I that are build development. value I development We is chain -- fixed component not valued because I'm a slice, the the it the but a

it. So we're from somewhat insulated

we're also but for because in some insulated up PPA probably the a think and process, assets from of that not competitive the I directly, it to way inflation and from valued are paid procurer insulated its it because we're NTP makes pricing. the

slice hands. protected development both the is on relatively So

And or as of cash Okay. done your accounting December can how you've recently, M&A kind just you November of, maybe say, and X question, X? much given balance give let's buyback

Well, actually we're this collecting very operating Pavel, from cash project flow. strong cash we We're the quarter. have selling

So our now. is right still position strong cash pretty

it, Appreciate Okay. guys.

Pavel. you, Thank

Thank you.

back Thank of to the remarks. conclude program like session question-and-answer I'd you. program. the to This does hand management today's any further for

We of is operator. strategy execution and our track is that sound strong. believe our you, Thank record

We continue growing profitability.

We are on in forward updating today again support. opportunities few and for again us our by looking continued the to for months. and energized ahead a joining progress Thank you your you

you have questions, Relations season. Wish Investor concludes call holiday This contact our you wonderful our a today. please team. any all If

may all disconnect. You

you. for does participation conclude the and program. Thank thank you Ladies today's your gentlemen, in conference. This

now may disconnect. Good day. You