ReneSola Ltd, a leading fully integrated solar project developer, announced its unaudited financial results for the first quarter ended March 31, 2021.
First Quarter 2021 Financial Details
Revenue
First quarter revenue was $22.8 million, up both sequentially and year-over-year. Revenue from Project Development was largely driven by the sale of solar projects in Hungary and Utah. Energy sales were mostly from the 31.4 million KWh generated by our rooftop DG projects in China and the U.S. By their nature, project sales are large with unpredictable timing, and quarterly revenue will often fluctuate significantly. The Company measures its success in project sales over longer periods, typically at least a year.
Gross Profit and Gross Margin
Gross profit was $6.8 million in the first quarter of 2021, yielding a gross margin of 29.9%, a significant increase, not affected by material cost increases in the solar supply chain. This result compares to a gross profit of $2.0 million and gross margin of 12.1% in the fourth quarter of 2020, and a gross profit of $1.4 million and gross margin of 6.4% in the first quarter of 2020.
Operating Expense and Operating Income
Operating expenses in the first quarter of 2021 were $2.7 million, up both sequentially and year-overyear. Sales and marketing expenses of $125,000 were down sequentially and up year-over-year. General and administrative expenses of $2.7 million were down sequentially and up year-over-year. Other operating income was $158,000, which was mainly related to loan forgiveness in the U.S. First quarter 2021 operating income was $4.1 million, compared to operating income of $0.5 million in Q4 2020 and operating loss of $1.1 million in Q1 2020. Non-GAAP operating income in Q1 2021 was $4.6 million, compared to non-GAAP operating income of $0.2 million in Q4 2020 and non-GAAP operating loss of $0.7 million in Q1 2020.
Net Income
In the first quarter of 2021, net income attributed to ReneSola Power was $0.8 million, compared to net loss of $4.4 million in the first quarter of 2020 and net income of $2.0 million in the fourth quarter of 2020. Net income per ADS was $0.01 in the first quarter of 2021, compared to net loss per ADS of $0.09 in the first quarter of 2020 and net income per ADS of $0.04 in the fourth quarter of 2020. Non-GAAP net income attributed to ReneSola Power in the first quarter of 2021 was $3.0 million, compared to non-GAAP net loss of $0.4 million in the fourth quarter of 2020 and non-GAAP net loss of $2.0 million in the first quarter of 2020. Non-GAAP net income per ADS was $0.05, compared to non-GAAP net loss per ADS of $0.01 in the fourth quarter of 2020 and non-GAAP net loss per ADS of
$0.04 in the first quarter of 2020.
Financial Position
Cash and equivalents were $301.0 million as of March 31, 2021, compared to $40.6 million as of December 31, 2020. Total current assets (as disclosed in appendix 2) were $370.2 million as of March 31, 2021, compared to $136.7 million as of December 31, 2020. Long-term borrowings were $69,000 as of March 31, 2021, compared to nil as of December 31, 2020. Our long-term failed sale-lease back and finance lease liabilities associated with the financial leasing payables for rooftop projects in China were $38.7 million as of March 31, 2021, compared to $44.0 million as of December 31, 2020. Shortterm borrowings were $800,000 as of March 31, 2021, down significantly from $32.0 million as of December 31, 2020, and debt to asset ratio is only 19% Cash flow used in operating activities was $10.5 million in Q1 2021. Cash flow provided by investing activities was $26.1 million, mainly driven by the sale of operating assets in Romania. Cash flow generated from financing activities was $244.8 million.
Outlook
For full year 2021, the company continue to expect revenue in the range of $90 to $100 million and gross margin of over 25% and expect a profitable 2021 with significant profit growth compared to 2020. This outlook reflects companys strategy to focus on profitability and bottom-line growth. For the second quarter of 2021, company expect revenue to be in the range of $19 to $22 million and gross margin in the range of 36% to 39%.
