In what are challenging market conditions for all manufacturers, ReneSola has managed to increase sales volumes and revenues in Q2, by 8.6% and 10.2% respectively. The company shipped 503.7 MW of wafers and modules, collecting $233 million in revenues.
On the back of these figures, ReneSola was able to register a slim gross profit of $1.3 million, turning this around from a $8 million loss in Q1. Despite this, an operating margin of 14.9% was registered, an improvement on Q1, where a negative margin of 17.9% was recorded.
In announcing the results, ReneSolas CEO Xianshou Li reflected on the continuing growth of the company in terms of sales volumes. "We achieved record module shipments in the second quarter, up 76% quarter over quarter and 146% year over year, which is reflected in the number of employees we have added this year, primarily in the area of modules." ReneSola added over 400 employees in Q2, bringing the global total to 9,500.
ReneSolas operating expenses increased from $29.8 million in Q1 to $35.9 million in Q2, which the company primarily attributed to an increase in sales and marketing expenses, and R&D and technological improvements at its Sichuan polysilicon facility.
Company CEO Li said that while ReneSolas module business is continuing to expand, wafer manufacturing continues to be its "core competitive strength." "Additionally, our R&D investments have led to horizontal developments, such as microinverters, which we expect will provide us with additional opportunities for growth. We will continue to invest in R&D, while simultaneously expanding our sales and marketing reach, to overcome short-term challenges and to prepare for when market conditions improve," said Li.
For Q3 ReneSola expects shipments in the range of 510 to 530 MW to be achieved, with revenues in the range of $200 million to $220 million. Its full year shipment guidance remains at 2.2 to 2.4 GW. This is below analyst predictions for the company, according to Thomson Reuters I/B/E/S, where expectations were reported to be $22.8.7 million.