The Shanghai-based project developer – which will soon relocate to the U.S. – says the profit margins are not high enough in those markets and has cancelled its project pipeline in the nations. The company has also changed its CEO after less than five months and is on a drive to reduce capital costs.
The project developer trumpeted its return to the black in the second quarter and appears set to secure an $11 million cash injection from its main shareholder. It needs the cash to help settle a near-$29 million debt due for repayment in March.
The Shanghai company’s decision to go forward as a pure play developer puts it at odds with its peers and the diminishing margins reported in its Q1 figures illustrate why it may prove to be a high-stakes gamble to bet against manufacturing.
Developer has posted positive financial results for the second quarter running, following the company’s restructuring. Though its discontinued module manufacturing operations are not included in financial results for the first quarter, the company more than tripled net income on the previous three-month period.
The Sequoia Economic Infrastructure Income Fund has extended a loan to ReneSola Ltd to €36 million for the implementation of 55 MW of solar PV projects in Poland.
The Chinese project developer expects quarterly revenue to be higher by up to $15 million, and solar module prices to drop significantly in the second half of the year.
ReneSola Ltd has sold a 40.13% stake in its Zhejiang ReneSola Investment Limited subsidiary, which deals with its distributed generation (DG) solar PV projects in China.
The Chinese solar PV project developer has posted positive earnings for both FY2017 and Q4, although it has not included its discontinued manufacturing operations in its latest financials. Overall, it has a project pipeline of 1.1 GW, big plans for Europe and a strategic investor interested in injecting US$31.6 million in its Chinese Holdco.