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ReneSola Ltd Announces First Quarter 2010 Results
Company returns to profitability with net income of US$11.8 million; Achieves revenues of US$206.6 million and record quarterly shipments of 242.4 MW, both exceeding Company guidance

JIASHAN, China, May 10, 2010 /PRNewswire via COMTEX/ --ReneSola Ltd ("ReneSola" or the "Company") (NYSE: SOL) (AIM: SOLA), a leading global manufacturer of solar wafers and provider of solar module original equipment manufacturer ("OEM") services, today announced its unaudited financial results for the first quarter ended March 31, 2010.


    (Logo: http://www.newscom.com/cgi-bin/prnh/20080506/CNTU030 )

    First Quarter 2010 Financial and Operating Highlights
    -- Total solar product shipments in Q1 2010 were a record 242.4 megawatts
       ("MW"), an increase of 12.6% from 215.2 MW in Q4 2009.
    -- Q1 2010 net revenues were US$206.6 million, an increase of 14.8% from
       US$179.9 million in Q4 2009.
    -- Q1 2010 gross profit was US$35.3 million with a gross profit margin of
       17.1%, compared to a gross margin of negative 0.6% in Q4 2009.
    -- Q1 2010 operating income was US$21.2 million with an operating margin
       of 10.3%, compared to an operating margin of negative 11.4% in Q4 2009.
    -- Q1 2010 net income was US$11.8 million, representing basic and diluted
       earnings per share of US$0.07, and basic and diluted earnings per
       American depositary share ("ADS") of US$0.14.
    -- The Company generated strong positive cash flow in Q1 2010 and reduced
       inventory carrying cost to US$54 per kilogram at the end of Q1 2010
       with an average carrying cost of US$60 per kilogram during the quarter.



"We had a strong first quarter of 2010, characterized by record solar product shipments and our return to profitability," said Li Xianshou, ReneSola's chief executive officer. "During the quarter, we continued to benefit from the execution of our cost-competitive strategy and focus on high- quality wafer production supported by solar module OEM services. We believe we are well positioned to capitalize on our cost-competitive leadership position and effective end-to-end manufacturing platform. In addition, we have recently witnessed strong market demand for wafer products resulting in higher wafer ASPs and we expect such momentum to continue throughout 2010."

Julia Xu, ReneSola's chief financial officer, added, "We significantly improved our margins in the first quarter of 2010 due to lower raw material costs and improved manufacturing efficiencies. ReneSola has now become an industry leader in low cost manufacturing. We anticipate additional cost reductions throughout 2010 which, combined with expected strong market demand for wafers, should help to further increase our profitability."

Results for the First Quarter 2010

Changes in Wafer Efficiency Calculation

Effective January 1, 2010, the Company adjusted its efficiency calculation to reflect its current solar cell conversion efficiency rates. As of December 31, 2009, the Company had achieved average conversion efficiency rates for solar cells utilizing in-house monocrystalline and multicrystalline wafers of 17.4% and 16%, respectively. This compares to the Company's previous monocrystalline and multicrystalline conversion efficiency rates of 16% and 15%, respectively. Under these adjusted conversion efficiency rates, the average amount of power per watt ("W") generated by each wafer has increased 5% to 8%. ReneSola may adjust its efficiency calculation from time to time should efficiencies continue to improve. Wafer products are typically sold on a per piece basis.





                                          Adjusted Solar       Previous Solar
                                         Cell Conversion      Cell Conversion
                                         Efficiency Rates     Efficiency Rates
                                          1Q10       4Q09            4Q09

    125x125mm Monocrystalline Wafer(W)     2.6        2.6             2.4
    156x156mm Monocrystalline Wafer(W)     4.2        4.2             3.9
    156x156mm Multicrystalline Wafer(W)    3.9        3.9             3.7
    Wafer ASP ($/W)                      $0.77      $0.75           $0.80




Product Shipments

Total solar product shipments in Q1 2010 exceeded the Company's guidance as a result of strong overall market demand, particularly for solar wafers.




                                      1Q10    4Q09*     4Q09   1Q09   Q-o-Q%*
    Total Solar Product              242.4    215.2    202.9   90.4    12.6%
    Shipments (MW)
    Wafer Shipments (MW)             226.9    199.6    187.4   90.4    13.7%

    Module Shipments (MW)             15.4     14.6     14.6    N/A     5.5%

     * Based on the Company's adjusted efficiency calculation effective
       January 1, 2010.


    Net Revenues

                             1Q10       4Q09       1Q09    Q-o-Q%   Y-o-Y%

    Net Revenues (US$mln)   $206.6     $179.9     $106.9    14.8%    93.3%




Net revenues in Q1 2010 exceeded the Company's guidance. The Company's wafer ASP increased from US$0.75 per watt in Q4 2009 to US$0.77 per watt in Q1 2010 based on the Company's new efficiency calculation.




    Gross Profit (Loss)

                                              1Q10         4Q09**      1Q09

    Gross Profit                             $35.3         ($1.1)     ($51.1)
    (Loss) (US$mln)
    Gross Margin                             17.1%         (0.6%)     (47.8%)


    ** The Company reclassified US$6.0 million from its operating expenses
       into cost of goods sold with regards to provisions made against Linzhou
       Zhongsheng Semiconductor Silicon Material Co., Ltd., resulting in an
       increase of US$6.0 million in cost of goods sold in Q4 2009 and a
       decrease of US$6.0 million in operating expenses in the same quarter.




The significant improvement in the Company's gross margin from negative 0.6% in Q4 2009 to positive 17.1% in Q1 2010 is attributable to a large decrease in polysilicon cost from US$74 per kilogram in Q4 2009 to US$60 per kilogram in Q1 2010 and the strong progress made through cost reduction initiatives.




    Operating Income (Loss)

                                    1Q10     4Q09      1Q09    Q-o-Q%   Y-o-Y%
    Operating Expenses (US$mln)     $14.1    $19.4     $7.3    (27.3%)   93.2%
    Operating Income(Loss) (US$mln) $21.2   ($20.5)  ($58.3)       --       --

    Operating Margin                10.3%   (11.4%)  (54.5%)       --       --




The sequential decrease in operating expenses was primarily attributable to a provision of US$8.6 million against doubtful receivables from Linzhou Zhongsheng Semiconductor ("Linzhou Zhongsheng") in Q4 2009.




    Foreign Exchange Gain (Loss)

                                                  1Q10       4Q09       1Q09
    Foreign Exchange Gain                        ($0.9)     ($0.5)     ($0.6)
    (Loss) (US$mln)




The Company recognized a foreign exchange loss of approximately US$0.9 million in Q1 2010, mostly related to fluctuations in euro and U.S. dollar denominated exchange rates. In Q1 2010, ReneSola's revenue breakdown by currency was approximately 51% in renminbi (RMB), 36% in U.S. dollars (USD), and 13% in euros (EUR). The Company expects euro denominated sales to be approximately 15% of full year 2010 overall revenues.




    Income (Loss) Before Income Tax

                                              1Q10        4Q09         1Q09
    Income (Loss) Before                      $15.4      ($22.5)      ($62.8)
    Income Tax (US$mln)


    Taxation

                                              1Q10         4Q09         1Q09
    Tax (Expense)                            ($3.6)        $5.4        $32.8
    Benefit (US$mln)




Tax benefits were recognized in Q1 2009 and Q4 2009 largely due to tax losses. The Company assumes a 23.6% tax rate for 2010.




    Net Income (Loss) Attributable to Holders of Ordinary Shares

                                           1Q10         4Q09           1Q09
    Net Income (Loss) (US$mln)            $11.8        ($17.0)        ($30.0)
    Earnings (Loss) Per Share             $0.07        ($0.10)        ($0.22)
    Earnings (Loss) Per ADS               $0.14        ($0.20)        ($0.44)




The Company returned to profitability with basic and diluted earnings per share of US$0.07, and basic and diluted earnings per ADS of US$0.14.

Recent Business Developments

Wafer Capacity to Reach 1.2 Gigawatts ("GW") by Q2 2010

In Q1 2010, ReneSola increased its wafer manufacturing capacity to 950 MW from 825 MW in Q4 2009 through improvements in slicing efficiencies using existing equipment and as a result of its adjusted wattage per piece calculation. In Q2 2010, the Company expects to add an additional 260 MW of capacity, bringing total wafer manufacturing capacity to 1,210 MW.

Strong Global Demand for Wafer Products

As a result of a recovery in demand for solar products in 2010, the Company has witnessed a tight supply of wafer products within the solar industry, resulting in average ASP increases of approximately 5% when comparing wafer prices in May 2010 to Q1 2010 average prices.

700 MW Solar Module OEM Agreements

In Q1 2010, ReneSola signed three OEM agreements to provide 700 MW of solar modules to three major global solar companies over a period of three years. The Company expects to ship between 200 MW to 250 MW of solar module products as it ramps up its production capacity throughout 2010.

Sichuan Polysilicon Facility Update

Phase 1 of polysilicon trial production achieved closed loop manufacturing with the activation of Trichlorosilane ("TCS") synthesis and hydrogenation in March 2010. Phase II trial production commenced in February 2010 and is expected to be fully integrated by Q3 2010. The Company achieved total production output of approximately 118.5 metric tonnes ("MT") in Q1 2010 and once both phases are fully integrated the Company plans to produce approximately 1,500 MT to 1,700 MT of polysilicon for the full year 2010 with a production cost target of US$40 per kilogram to US$45 per kilogram.

Balance Sheet

Convertible Bonds Fully Redeemed

During Q1 2010, the Company repurchased approximately US$31.5 million (equivalent to RMB214.8 million) aggregate principal amount of its RMB 928,700,000 U.S. Dollar Settled 1.0% Convertible Bonds due March 26, 2012 (the "Bonds"), for a total consideration of approximately US$32.7 million (equivalent to RMB223.6 million). As of March 31, 2010, the Company had no Bonds outstanding.

Prudent Capital Expenditures against Strong Operating Cash Flow

In Q1 2010, the Company spent approximately US$24.2 million in capital expenditures related to wafer, cell and module capacity expansion and generated strong operating cash flow. The Company plans to spend approximately US$100 million to bring wafer capacity to 1,210 MW, and cell and module capacities to 240 MW and 375 MW, respectively, by Q2 2010.

Company Appoints New Vice President of Wafer Technology

The Company recently appointed Mr. Zhidong Zheng as vice president of wafer technology. Mr. Zheng has served as R&D director of wafer technology for ReneSola since February 2009, leading the Company in reducing its wafer degradation and improving cell efficiencies. Mr. Zheng has over twenty years of research and engineering experience with extensive knowledge in optical and photovoltaic processes and operations. Prior to joining ReneSola, from 2005 to 2009, Mr. Zheng served as vice president of technology and operations for Jinggong Shaoxin Solar Energy, where he contributed significantly to the manufacturing of the first Chinese-made multicrystalline furnace. From 1989 to 2005, Mr. Zheng worked as an optical crystal engineer and department manager for a variety of companies in Singapore, as well as Zhejiang University. Mr. Zheng received a bachelor's degree in Optics Engineering from Zhejiang University in 1989.





    Q2 2010 and FY 2010 Outlook

                                                 2Q10E           FY10E
    Total Solar Product                        230 - 250     1,000 - 1,100
    Shipments (MW)
    Net Revenues (US$mln)                     $230 - $250     $900 - $950

    Gross Profit Margin(%)                      21%-23%         21%-23%




The Company revises upward its full year 2010 estimates and expects total solar product shipments of 1.0 GW to 1.1 GW, up from the previous total solar product shipment estimate of 900 MW to 950 MW. The Company expects stable ASPs in Q3 and ASP declines of 5% to 10% from the current level in Q4. The Company expects to continue reducing its overall production costs and revises upward its full year 2010 gross profit margin to be in the range of 21% to 23%.

Conference Call Information

ReneSola's management will host an earnings conference call on Monday, May 10, 2010 at 8 am U.S. Eastern Daylight Time / 8 pmBeijing/Hong Kong time / 1 pm British Summer Time.



    Dial-in details for the earnings conference call are as follows:

    U.S. / International:   +1-617-213-8059
    United Kingdom:         +44-207-365-8426
    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 May 17, 2010:

    International:          +1-617-801-6888
    Passcode:               26472273



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. Capitalizing on economies of scale, low-cost production capabilities and technological innovations, 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 solar module OEM services. The Company possesses a global network of suppliers and customers that include some of the leading global manufacturers of solar cells and modules. ReneSola's shares are traded on the New York Stock Exchange (NYSE: SOL) and the AIM of the London Stock Exchange (AIM: SOLA).

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
     Email: feng.qi@renesola.com

     Mr. Derek Mitchell
     Ogilvy Financial, Beijing
     Tel:   +86-8520-6284
     Email: 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

    In the United Kingdom:
     Mr. Tim Feather / Mr. Richard Baty
     Westhouse Securities Limited, London
     Tel:   +44-20-7601-6100
     Email: tim.feather@westhousesecurities.com
            richard.baty@westhousesecurities.com





                                 RENESOLA LTD
                     Unaudited Consolidated Balance Sheet
                          (US dollars in thousands)

                                            March 31, December 31,  March 31,
                                               2010        2009        2009
    ASSETS
    Current assets:
    Cash and cash equivalents                 98,041     106,808     172,614
    Restricted cash                           44,195      25,266      67,394
    Available for sale investment              8,109      12,474           0
    Trade receivable, net of allowances
     for doubtful receivables                146,386     107,987      34,965
    Inventories, net of inventory
     provisions                              122,335     137,844     148,856
    Advances to suppliers, current
     portion                                  12,123      12,092      18,930
    Amounts due from related parties             440         440         441
    Value added tax recoverable               43,611      51,843      22,829
    Prepaid expenses and other current
     assets                                    9,294       7,326      10,107
    Deferred tax assets, current portion      22,853      22,070      38,748
    Total current assets                     507,387     484,150     514,884

    Property, plant and equipment, net       721,156     702,816     415,561
    Prepaid land rent, net                    25,450      23,137      13,372
    Other Intangible assets                      562       1,349           0
    Deferred tax assets, non-current
     portion                                  36,406      40,211      15,049
    Deferred convertible bond issue costs          0          86       1,573
    Advances to suppliers, non-current
     portion                                   7,193       8,072      48,635
    Advances for purchases of property,
     plant and equipment                      21,209      20,840     164,959
    Other long-term assets                     1,989       2,840       1,064
    Goodwill                                   5,323       5,323           0
    Total assets                           1,326,675   1,288,824   1,175,097

    LIABILITIES AND SHAREHOLDERS' EQUITY

    Current liabilities:
    Short-term borrowings                    406,609     358,634     277,006
    Accounts payable                         129,159      93,406      37,181
    Advances from customers, current
     portion                                  54,029      53,852      58,584
    Amounts due to related parties                40          24          24
    Other current liabilities                 71,413      71,461      47,156
    Convertible bond payable, current
     portion                                       0      32,475           0
    Total current liabilities                661,250     609,852     419,951

    Convertible bond payable, non-current
     portion                                       0           0     139,080
    Long-term borrowings                     171,409     189,279     135,667
    Advances from customers, non-current
     portion                                  73,919      78,578     113,181
    Other long-term liabilities               12,008      10,858      15,197
    Total liabilities                        918,586     888,567     823,076

    Shareholders' equity
      Common shares                          414,068     413,753     330,666
      Additional paid-in capital              21,165      21,065      18,457
      Accumulated deficits                   (37,738)    (49,515)    (18,725)
      Accumulated other comprehensive
       income                                 10,594      14,954      21,623
    Total shareholders' equity               408,089     400,257     352,021

    Non-controlling interests                      0           0           0
    Total liabilities and shareholders'
     equity                                1,326,675   1,288,824   1,175,097



                                 RENESOLA LTD
               Unaudited Consolidated Statements of Income Data
             (US dollar in thousands, except ADS and share data)

                                           Three         Three        Three
                                       months ended  months ended months ended
                                         March 31,   December 31,    March 31,
                                             2010       2009(1)        2009

    Net revenues                           206,551      179,885      106,946
    Cost of revenues                      (171,228)    (180,989)    (158,033)
    Gross profit (loss)                     35,323       (1,104)     (51,087)

    Operating expenses:
    Sales and marketing                     (1,426)      (2,034)        (116)
    General and administrative              (4,727)     (14,816)      (3,956)
    Research and development                (6,168)      (2,860)      (3,446)
    Other general (expense) income          (1,798)         338          259
    Total operating expenses               (14,119)     (19,372)      (7,259)

    Income (loss) from operations           21,204      (20,476)     (58,346)

    Non-operating (expenses) income:
    Interest income                            101          815          456
    Interest expenses                       (4,968)      (4,950)      (4,048)
    Foreign exchange gain (loss)              (911)        (495)        (550)
    Debt conversion profit                       0        2,642            0
    Equity in earning of investee                0            0         (291)
    Total non-operating (expenses)
     income                                 (5,778)      (1,988)      (4,433)

    Income (loss) before income tax         15,426      (22,464)     (62,779)

    Income tax benefit (expense)            (3,649)       5,434       32,760
    Net income (loss) attributed to
     non-controlling interest                    0            0            0
    Net income  (loss) attributed to
     holders of ordinary shares             11,777      (17,030)     (30,019)

    Earnings (Loss) per share
      Basic                                   0.07        (0.10)       (0.22)
      Diluted                                 0.07        (0.10)       (0.22)

    Earnings (Loss) per ADS
      Basic                                   0.14        (0.20)       (0.44)
      Diluted                                 0.14        (0.20)       (0.44)

    Weighted average number of shares
     used in computing earnings per
     share
      Basic                            172,668,245  171,277,086  137,624,912
      Diluted                          172,668,245  171,277,086  137,624,912



    (1) The Company reclassified US$6.0 million from its operating expenses
        into cost of goods sold with regards to provisions made against
        Linzhou Zhongsheng Semiconductor Silicon Material Co., Ltd., resulting
        in an increase of US$6.0 million in cost of goods sold in Q4 2009 and
        a decrease of US$6.0 million in operating expenses in the same
        quarter.




SOURCE ReneSola Ltd