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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event
reported): May 23, 2024
EMEREN GROUP LTD
(Exact Name of Registrant as Specified in Its Charter)
British Virgin Islands |
001-33911 |
N/A |
(State or other jurisdiction
of incorporation) |
(Commission
File Number) |
(IRS Employer
Identification No.) |
149 Water Street, Suite 302
Norwalk, Connecticut |
06854 |
(Address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including
area code: +1 925-425-7335
_______________________________________
(Former name or former address, if changed since
last report.)
Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
|
¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
|
¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
|
Trading Symbol(s) |
|
Name of each exchange on which registered |
American Depositary Shares, each representing Common stock, 10 shares, no par value per share |
|
SOL |
|
New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth
company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant
has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant
to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations and Financial Condition.
On May 23, 2024, Emeren Group
Ltd (the “Company”) issued a press release announcing its financial results and providing a business update as of and for
the first quarter ended March 31, 2024. A copy of this press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and
is incorporated herein by reference.
The information furnished
in this Item 2.02, including Exhibit 99.1, is not deemed to be “filed” for purposes of Section 18 of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section. This information will
not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”),
or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
EMEREN GROUP LTD |
|
|
|
Date: May 28, 2024 |
By: |
/s/ Ke Chen |
|
|
Ke Chen |
|
|
Chief Financial Officer |
Exhibit 99.1
May 23, 2024
Fellow Shareholders,
In the first quarter of 2024, we generated $14.8
million in revenue, marking a 15% increase year over year. Our gross profit soared to $4.0 million, more than doubling from the previous
year, with the gross margin reaching 27.2%. The operating loss was approximately $0.7 million, significantly reduced from last year.
This substantial growth in revenue was primarily driven by our expanding Development Service Agreement (DSA) business, which generated
over $5 million in revenue.
Our effort to improve operational efficiency
across all regions is paying off. We decreased operating expenses by over 50% through strategic cost control measures. That progress
was offset this quarter by a $0.7 million write-off of cancelled U.S. early-stage projects due to our shifted focus on advanced-stage
projects and an unrealized foreign exchange loss of over $3.2 million, which constituted the bulk of our net loss.
We’ll give a quick overview of each of
our business lines, starting with the quarterly primary catalyst, then we’ll circle back with more detail later.
DSA & BESS
Our DSA projects contribute to a stable and predictable
business model, enabling revenue recognition at the earliest stages of project development. This approach is proving instrumental in
managing risks and maximizing cash flow efficiency across the project lifecycle. In Q1, DSA revenue accounted for 34% of our total, largely
driven by battery energy storage system (“BESS”) projects in Italy. Looking ahead, we plan to broaden our DSA partnerships
on a global scale.
Concurrently, our BESS pipeline continues to
grow steadily globally. We recently signed a DSA agreement for BESS projects in Southern Italy with Nuveen Infrastructure, formerly known
as Glennmont Partners, one of the world's largest fund managers specializing in clean energy, aiming for a total power capacity of 199
MW (up to 1.59GWh). In April, we secured an additional agreement with Nuveen for 155 MW (up to 1.24GWh) of battery storage projects,
bringing the total power capacity to 354 MWp (up to 2.83GWh).
IPP
In Q1, our IPP assets were the primary drivers
of growth and profitability, contributing to 38% of our revenue with a gross margin of 44%. IPP continues to be a pivotal component of
our business model, providing a dependable source of stable and predictable cash flows. Our IPP revenue is balanced between Europe and
China, with a modest presence in the U.S. as of today. In Europe, we have 67 MW of IPP assets that generate recurring revenue. For legacy
reasons, we have IPP assets in China, located in the five coastal provinces with favorable power prices, strong economies, and robust
regulatory environments. We are now fortifying those assets by adding battery storage to the portfolio. As of the end of Q1, our battery
storage portfolio comprised 19 MWh, all integrated into the Virtual Power Plant (“VPP”) platform owned and operated by Huaneng
Power International, one of the largest IPP operators in China. The VPP market in China is expanding rapidly.
Project Development
During the quarter, we continued to develop solar
and storage projects. As of the end of Q1 2024, we had over 2.6 GW of advanced-stage, high-quality solar projects. We maintain our expectation
to monetize approximately 400 to 500 MW of projects in 2024 and beyond. By the end of Q1, our total energy storage project pipeline had
increased to over 8 GW (32 GWh).
Outlook
In conclusion, we are optimistic about our revenue
growth potential, which is fueled by strategic initiatives and a robust project pipeline, and our ability to achieve gross margins of
over 30%. We are also confident we can continue to lower operating expenses.
As such, we anticipate that our Q2 revenue will
fall within the range of $20 to $23 million, with a gross margin between 40 and 45%. For the full year 2024, we reaffirm our expectation
for revenue to range from $150 to $160 million and for a gross margin of approximately 30%. Additionally, we expect our net income for
2024 to be around $22 million, with consideration of foreign exchange impact, and expect earnings per American Depositary Share (“ADS”)
to be at approximately 43 cents.
We reiterate our expectation for our IPP revenue
in 2024 to be between $24 million and $26 million, with a gross margin of approximately 50%. We expect gross margin contributed by DSA
globally to be within the range of 15-20%.
With that overview, we will now review the details
of our first quarter operating and financial performance.
Q1 2024 Financial Highlights:
| ● | Revenue
of $14.8 million up 15% y/y and down 66% q/q |
| ● | Gross
profit of $4.0 million, more than doubled from Q1 2023 |
| ● | Adjusted
EBITDA of $1.2 million, up from a negative $2.6 million in Q4 2023 and a negative $0.5 million
in Q1 2023 |
| ● | Operating
loss of $0.7 million, significantly improved from Q4 2023 and Q1 2023 |
$ in millions | |
Q1’24 | | |
Q4’23 | | |
Q/Q | | |
Q1’23 | | |
Y/Y | |
Revenue | |
$ | 14.8 | | |
$ | 44.0 | | |
| -66 | % | |
$ | 12.9 | | |
| +15 | % |
Gross profit | |
| 4.0 | | |
| 3.3 | | |
| +20 | % | |
| 1.6 | | |
| +153 | % |
Operating loss | |
| (0.7 | ) | |
| (6.1 | ) | |
| -89 | % | |
| (3.0 | ) | |
| -77 | % |
EBITDA | |
| (2.1 | ) | |
| (5.5 | ) | |
| +62 | % | |
| 1.8 | | |
| -213 | % |
Adjusted EBITDA | |
| 1.2 | | |
| (2.6 | ) | |
| N/M | | |
| (0.5 | ) | |
| N/M | |
Net loss attributed to Emeren Group Ltd | |
$ | (4.4 | ) | |
$ | (8.1 | ) | |
| -46 | % | |
$ | (0.2 | ) | |
| N/M | |
Revenue by segment:
Segment ($ in thousands) | |
Q1’24 Revenue | | |
% of Total
Revenue | |
IPP | |
| 5,571 | | |
| 38 | % |
EPC | |
| 4,137 | | |
| 28 | % |
DSA* | |
| 5,062 | | |
| 34 | % |
Others | |
| 17 | | |
| 0 | % |
Total | |
$ | 14,787 | | |
| 100 | % |
*DSA: All the DSA revenue in Q1 was generated
from BESS projects.
Revenue by region:
Region ($ in thousands) | |
Q1’24 Revenue | | |
% of Total
Revenue | |
Europe | |
$ | 11,500 | | |
| 78 | % |
China | |
| 2,880 | | |
| 19 | % |
USA | |
| 407 | | |
| 3 | % |
Total | |
$ | 14,787 | | |
| 100 | % |
Advanced-Stage and Early-Stage
Solar Development Project Pipeline
Project Pipeline by Region (as of March 31, 2024):
Region | | |
Advanced
Stage | | |
Early
Stage | | |
Total
(MW) | |
Europe | | |
| 1,495 | | |
| 5,454 | | |
| 6,949 | |
U.S. | | |
| 1,032 | | |
| 920 | | |
| 1,952 | |
China | | |
| 85 | | |
| - | | |
| 85 | |
Total | | |
| 2,612 | | |
| 6,374 | | |
| 8,986 | |
Project Pipeline by Country (as of March 31,
2024):
Country | | |
Advanced
Stage | | |
Early
Stage | | |
Total
(MW) | |
Poland | | |
| 440 | | |
| 65 | | |
| 505 | |
Hungary | | |
| 35 | | |
| - | | |
| 35 | |
U.K. | | |
| 110 | | |
| - | | |
| 110 | |
Spain | | |
| 215 | | |
| 4,415 | | |
| 4,630 | |
Germany | | |
| 125 | | |
| 360 | | |
| 485 | |
France | | |
| 99 | | |
| 90 | | |
| 189 | |
Italy | | |
| 471 | | |
| 524 | | |
| 995 | |
U.S. | | |
| 1,032 | | |
| 920 | | |
| 1,952 | |
China | | |
| 85 | | |
| - | | |
| 85 | |
Total | | |
| 2,612 | | |
| 6,374 | | |
| 8,986 | |
Advanced-Stage and Early-Stage
Solar Storage Project Pipeline
Project Pipeline by Region (as of March 31, 2024):
Region | | |
Advanced
Stage | | |
Early
Stage | | |
Total
(MW) | |
Europe | | |
| 2,460 | | |
| 4,913 | | |
| 7,373 | |
U.S. | | |
| 596 | | |
| - | | |
| 596 | |
China | | |
| 50 | | |
| - | | |
| 50 | |
Total | | |
| 3,106 | | |
| 4,913 | | |
| 8,019 | |
Project Pipeline by Country (as of March 31,
2024):
Country | | |
Advanced
Stage | | |
Early
Stage | | |
Total
(MW) | |
Poland | | |
| 912 | | |
| 630 | | |
| 1,542 | |
Hungary | | |
| - | | |
| - | | |
| - | |
U.K. | | |
| 170 | | |
| 175 | | |
| 345 | |
Spain | | |
| 36 | | |
| 2381 | | |
| 2,417 | |
Germany | | |
| - | | |
| - | | |
| - | |
France | | |
| 14 | | |
| - | | |
| 14 | |
Italy | | |
| 1,328 | | |
| 1,727 | | |
| 3,055 | |
U.S. | | |
| 596 | | |
| - | | |
| 596 | |
China | | |
| 50 | | |
| - | | |
| 50 | |
Total | | |
| 3,106 | | |
| 4,913 | | |
| 8,019 | |
Notes:
| 1. | The average hours per MW vary across regions.
For example, in the U.S. and Europe, it ranged from 4 - 8 hours per MW of storage, while
in China, it was ~2 hours. |
| 2. | Q1’24 advanced-stage storage pipeline
number for Spain is lower than Q4’23 due to reclassification of projects to early-stage
after additional review. |
Growing IPP Asset Portfolio
in Attractive PPA Regions
As of March 31, we owned and operated IPP assets
comprising 255 MW of solar PV projects and 19 MWh of storage.
Operating Assets | |
PV Capacity (MW) | | |
Storage (MWh) | |
China DG | |
| 164 | | |
| 19 | |
Europe | |
| 67 | | |
| - | |
U.S. | |
| 24 | | |
| - | |
Total | |
| 255 | | |
| 19 | |
Our battery storage IPP portfolio of 19 MWh are
all integrated into the Virtual Power Plant (“VPP”) platform owned and operated by Huaneng Power International in Zhejiang
Province, China.
Q1 2024 Financial Results:
All figures refer to the first quarter of
2024, unless stated otherwise.
Revenue
Revenue of $14.8 million represented an increase
of 15% year-over-year from Q1 2023 and a decrease of 66% from Q4 2023. The sequential decline was due to normal seasonality, while the
year-over-year increase in revenue was primarily driven by our growing DSA business, which accounted for 34%.
Gross Profit and Gross Margin
Gross profit was $4.0 million, compared to $3.3
million in Q4 2023 and $1.6 million in Q1 2023. Gross margin was 27.2%, compared to 7.6% in Q4 2023 and 12.4% in Q1 2023. The gross margin
improved sequentially, primarily due to a higher mix of IPP and EPC businesses, both of which had more favorable margins than the previous
quarter.
Operating Expense
Operating expenses were $4.7 million, an improvement
from $9.5 million in Q4 2023 and comparable to $4.6 million in Q1 2023. Our Q1 operating expenses were impacted by a $0.7 million write-off
of cancelled early-stage projects in the U.S.
Net loss attributable to Emeren Group Ltd’s
common shareholders
Net loss attributed to Emeren Group Ltd’s
common shareholders was $4.4 million, compared to net loss of $8.1 million in Q4 2023 and net loss of $0.2 million in Q1 2023. Diluted
net loss attributable to Emeren Group Ltd’s common shareholders per American Depositary Share (“ADS”) was $0.08, compared
to diluted net loss of $0.15 in Q4 2023 and diluted net loss of $0.00 in Q1 2023.
Cash Flow
Cash used in operating activities was $3.3 million;
cash used in investing activities was $2.6 million, and cash used in financing activities was $8.4 million. Negative operating cash flow
was primarily due to delayed payments from Polish projects.
Financial Position
Cash and cash equivalents at the end of Q1 2024
were $55.1 million compared to $70.2 million in Q4 2023.
Net asset value (NAV) is approximately $6.05
per ADS.
Our debt-to-asset ratio at the end of Q1 2024
was 9.99%, compared to 9.44% at the end of Q4 2023.
Shares Buyback
We purchased approximately $6.3 million ADS during
the quarter.
Conclusion
Despite short-term market concerns such as high
interest rates, lengthy interconnection queues, and the U.S. election cycle, our position is strengthening in the world’s fastest-growing
solar markets, which are benefiting from the rising demand for clean energy and supportive governmental policies. Our expertise in developing
and operating solar and storage projects, combined with our extensive network of industry partnerships and strong financial standing,
are driving us toward our goal of becoming a leading global renewable energy company. We are excited about the bright future of solar
energy and are proud to be at the forefront of this remarkable transformation towards a more sustainable future.
We would like to thank our employees for their
hard work and dedication. We also want to thank our customers, partners and shareholders for your continued support and confidence in
Emeren Group Ltd.
Sincerely,
Yumin Liu | Ke Chen | |
Chief Executive
Officer | Chief Financial Officer | |
First Quarter 2024 Earnings
Results Conference Call
We will host a conference call today to discuss
our first quarter 2024 business and financial results. The call is scheduled to begin at 5:00 p.m. U.S. Eastern Time on Thursday,
May 23, 2024.
Please register in advance to join the conference
call using the link provided below and dial in 10 minutes before the call is scheduled to begin. Conference call access information will
be provided upon registration.
Participant Online Registration:
https://register.vevent.com/register/BIbd1edfc48da84dec9a7afef67005b7db
Audio-only Webcast:
https://edge.media-server.com/mmc/p/rnybkbr9
Additionally, an archived webcast of the conference
call will be available on the Investor Relations section of Emeren Group Ltd's website at https://ir.emeren.com/.
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:
Emeren Group Ltd
Suzanne Wilson
+1 (510) 631 6550
Suzanne.wilson@emeren.com
Emeren Group Ltd - Investor
Relations
ir@emeren.com
The Blueshirt Group
Gary Dvorchak
+1 (323) 240-5796
gary@blueshirtgroup.co
Appendix 1:
Unaudited Consolidated Statement of Operations
| |
Three Months Ended | |
| |
Mar 31, 2024 | | |
Dec 31, 2023 | | |
Mar 31, 2023 | |
| |
(in thousands, except per ADS data and ADS) | |
Net revenues | |
$ | 14,787 | | |
$ | 44,000 | | |
$ | 12,876 | |
Cost of revenues | |
| (10,759 | ) | |
| (40,657 | ) | |
| (11,283 | ) |
Gross profit | |
| 4,028 | | |
| 3,343 | | |
| 1,593 | |
| |
| | | |
| | | |
| | |
Operating (expenses)/income: | |
| | | |
| | | |
| | |
Sales and marketing | |
| (142 | ) | |
| (105 | ) | |
| (92 | ) |
General and administrative | |
| (4,022 | ) | |
| (7,097 | ) | |
| (4,396 | ) |
Other operating expenses | |
| (550 | ) | |
| (2,287 | ) | |
| (108 | ) |
Total operating expenses | |
| (4,714 | ) | |
| (9,489 | ) | |
| (4,596 | ) |
| |
| | | |
| | | |
| | |
Loss from operations | |
| (686 | ) | |
| (6,146 | ) | |
| (3,003 | ) |
Other (expenses)/income: | |
| | | |
| | | |
| | |
Interest (expenses)/income, net | |
| 124 | | |
| (244 | ) | |
| (133 | ) |
Investment income | |
| - | | |
| 39 | | |
| 77 | |
Foreign exchange gains/(loss) | |
| (3,235 | ) | |
| (1,390 | ) | |
| 2,708 | |
Total other income/(loss) , net | |
| (3,111 | ) | |
| (1,595 | ) | |
| 2,652 | |
| |
| | | |
| | | |
| | |
Loss before income tax | |
| (3,797 | ) | |
| (7,741 | ) | |
| (351 | ) |
| |
| | | |
| | | |
| | |
Income tax benefit | |
| (176 | ) | |
| (2,116 | ) | |
| (264 | ) |
Loss, net of tax | |
| (3,973 | ) | |
| (9,857 | ) | |
| (615 | ) |
| |
| | | |
| | | |
| | |
Less: Net income (loss) attributed to non-controlling interests | |
| 431 | | |
| (1,769 | ) | |
| (421 | ) |
Net Loss attributed to Emeren Group Ltd | |
| (4,404 | ) | |
| (8,088 | ) | |
| (194 | ) |
| |
| | | |
| | | |
| | |
Loss attributed to Emeren Group Ltd per ADS | |
| | | |
| | | |
| | |
Basic | |
$ | (0.08 | ) | |
$ | (0.15 | ) | |
$ | (0.00 | ) |
Diluted | |
$ | (0.08 | ) | |
$ | (0.15 | ) | |
$ | (0.00 | ) |
| |
| | | |
| | | |
| | |
Weighted average number of ADS used in computing income/(loss) per ADS* | |
| | | |
| | | |
| | |
Basic | |
| 53,539,577 | | |
| 55,197,797 | | |
| 57,409,673 | |
Diluted | |
| 53,539,577 | | |
| 55,197,797 | | |
| 57,409,673 | |
*Each American depositary shares (ADS) represents 10 common shares
Appendix 2: Unaudited Consolidated Balance Sheet
| |
As of | |
| |
Mar 31, 2024 | | |
Dec 31, 2023 | | |
Mar 31, 2023 | |
| |
(in thousands) | |
ASSETS | |
| | |
| | |
| |
Current assets: | |
| | |
| | |
| |
Cash and cash equivalents | |
$ | 55,061 | | |
$ | 70,174 | | |
$ | 66,729 | |
Restricted cash | |
| 3 | | |
| - | | |
| 8 | |
Short-investments in U.S. Treasury Bills | |
| - | | |
| - | | |
| 9,992 | |
Accounts receivable trade, net | |
| 26,709 | | |
| 27,089 | | |
| 20,048 | |
Accounts receivable unbilled | |
| 49,406 | | |
| 59,526 | | |
| 51,903 | |
Advances to suppliers | |
| 4,850 | | |
| 4,283 | | |
| 625 | |
Value added tax receivable | |
| 9,079 | | |
| 7,361 | | |
| 7,142 | |
Prepaid expenses and other current assets, net | |
| 15,839 | | |
| 16,609 | | |
| 17,535 | |
Project assets current | |
| 46,509 | | |
| 39,914 | | |
| 36,711 | |
Deferred Cost | |
| 3,111 | | |
| 1,872 | | |
| - | |
Total current assets | |
| 210,567 | | |
| 226,828 | | |
| 210,693 | |
| |
| | | |
| | | |
| | |
Property, plant and equipment, net | |
| 170,018 | | |
| 163,076 | | |
| 172,682 | |
Project assets non-current | |
| 40,225 | | |
| 37,014 | | |
| 31,723 | |
Goodwill | |
| - | | |
| - | | |
| 1,023 | |
Operating lease right-of-use assets | |
| 20,037 | | |
| 20,037 | | |
| 22,350 | |
Finance lease right-of-use assets | |
| 4,647 | | |
| 14,127 | | |
| 21,504 | |
Other non-current assets | |
| 17,371 | | |
| 16,927 | | |
| 21,751 | |
Total assets | |
$ | 462,865 | | |
$ | 478,009 | | |
$ | 481,726 | |
| |
| | | |
| | | |
| | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | |
| | | |
| | | |
| | |
Current liabilities: | |
| | | |
| | | |
| | |
Short-term borrowings | |
| 945 | | |
| 1,069 | | |
| 1,487 | |
Accounts payable | |
| 15,664 | | |
| 13,041 | | |
| 5,911 | |
Advances from customers | |
| 5,243 | | |
| 5,375 | | |
| 2,885 | |
Amounts due to related parties | |
| 5,830 | | |
| 4,967 | | |
| 2,171 | |
Other current liabilities | |
| 18,837 | | |
| 22,054 | | |
| 20,120 | |
Income tax payable | |
| 2,160 | | |
| 2,168 | | |
| 914 | |
Salaries payable | |
| 670 | | |
| 718 | | |
| 550 | |
Deferred revenue | |
| 2,997 | | |
| 3,177 | | |
| - | |
Operating lease liabilities current | |
| 903 | | |
| 903 | | |
| 1,227 | |
Failed sale-lease back and finance lease liabilities current | |
| 4,505 | | |
| 4,916 | | |
| 8,401 | |
Total current liabilities | |
| 57,754 | | |
| 58,388 | | |
| 43,666 | |
| |
| | | |
| | | |
| | |
Long-term borrowings | |
| 23,028 | | |
| 23,001 | | |
| 22,024 | |
Deferred tax liabilities, non-current | |
| 3,499 | | |
| 3,532 | | |
| 3,559 | |
Operating lease liabilities non-current | |
| 18,247 | | |
| 18,247 | | |
| 20,500 | |
Failed sale-lease back and finance lease liabilities non-current | |
| 9,450 | | |
| 10,772 | | |
| 15,341 | |
Total liabilities | |
$ | 111,978 | | |
$ | 113,940 | | |
$ | 105,090 | |
| |
| | | |
| | | |
| | |
Shareholders' equity | |
| | | |
| | | |
| | |
Common shares | |
| 806,714 | | |
| 806,696 | | |
| 806,283 | |
Additional paid-in capital | |
| 14,757 | | |
| 14,728 | | |
| 13,941 | |
Treasury stock | |
| (48,116 | ) | |
| (41,938 | ) | |
| (33,200 | ) |
Accumulated deficit | |
| (451,105 | ) | |
| (446,701 | ) | |
| (437,571 | ) |
Accumulated other comprehensive loss | |
| (8,788 | ) | |
| (6,471 | ) | |
| (13,764 | ) |
Total equity attributed to Emeren Group Ltd | |
| 313,462 | | |
| 326,315 | | |
| 335,689 | |
Noncontrolling interest | |
| 37,425 | | |
| 37,754 | | |
| 40,947 | |
Total shareholders' equity | |
| 350,887 | | |
| 364,069 | | |
| 376,636 | |
Total liabilities and shareholders' equity | |
$ | 462,865 | | |
$ | 478,009 | | |
$ | 481,726 | |
Appendix 3: Unaudited Consolidated Statement
of Cash Flow
| |
Three Months Ended | |
| |
Mar 31, 2024 | | |
Dec 31, 2023 | | |
Mar 31, 2023 | |
| |
(in thousands) | |
Net cash provided by (used in) operating activities | |
$ | (3,283 | ) | |
$ | 2,922 | | |
$ | (23,728 | ) |
| |
| | | |
| | | |
| | |
Net cash provided by (used in) investing activities | |
| (2,598 | ) | |
| 7,006 | | |
| (1,866 | ) |
| |
| | | |
| | | |
| | |
Net cash used in financing activities | |
| (8,397 | ) | |
| (4,916 | ) | |
| (16,150 | ) |
| |
| | | |
| | | |
| | |
Effect of exchange rate changes | |
| (831 | ) | |
| 5,981 | | |
| 1,193 | |
Net increase (decrease) in cash and cash equivalents and restricted cash | |
| (15,110 | ) | |
| 10,993 | | |
| (40,551 | ) |
Cash and cash equivalents and restricted cash, beginning of the quarter | |
| 70,174 | | |
| 59,181 | | |
| 107,288 | |
Cash and cash equivalents and restricted cash, end of the quarter | |
$ | 55,064 | | |
$ | 70,174 | | |
$ | 66,737 | |
Use of Non-GAAP Financial Measures
To supplement Emeren Group Ltd’s financial
statements presented on a US GAAP basis, Emeren Group Ltd provides non-GAAP financial data as supplemental measures of its performance.
To provide investors with additional insight
and allow for a more comprehensive understanding of the information used by management in its financial and decision-making surrounding
pro-forma operations, we supplement our consolidated financial statements presented on a basis consistent with U.S. generally accepted
accounting principles, or GAAP, with EBITDA, Adjusted EBITDA as non-GAAP financial measures of earnings.
● EBITDA represents net income before
income tax expense (benefit), interest expense, depreciation and amortization.
● Adjusted EBITDA represents EBITDA
plus discount of electricity subsidy in China, plus share-based compensation, plus impairment of long-lived assets, plus loss/(gain)
on disposal of assets, plus foreign exchange loss/(gain).
Our management uses EBITDA, Adjusted EBITDA as
financial measures to evaluate the profitability and efficiency of our business model. We use these non-GAAP financial measures to access
the strength of the underlying operations of our business. These adjustments, and the non-GAAP financial measures that are derived from
them, provide supplemental information to analyze our operations between periods and over time.
We find these measures especially useful when
reviewing pro-forma results of operations, which include large non-cash impairment of long-lived assets and loss on disposal of assets.
Investors should consider our non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in
accordance with GAAP.
Appendix 4: Adjusted EBITDA
| |
Three Months Ended | |
| |
Mar 31, 2024 | | |
Dec 31, 2023 | | |
Mar 31, 2023 | |
| |
(in thousands) | |
Net Loss | |
$ | (3,973 | ) | |
$ | (9,857 | ) | |
$ | (615 | ) |
Income tax expenses | |
| 176 | | |
| 2,116 | | |
| 264 | |
Interest expenses, net | |
| (124 | ) | |
| 244 | | |
| 133 | |
Depreciation & Amortization | |
| 1,848 | | |
| 2,003 | | |
| 2,050 | |
EBITDA | |
$ | (2,073 | ) | |
$ | (5,494 | ) | |
$ | 1,832 | |
Discount of electricity subsidy in China | |
| 133 | | |
| 603 | | |
| (96 | ) |
Share based compensation | |
| 28 | | |
| 203 | | |
| 441 | |
Impairment of long-lived assets | |
| - | | |
| 616 | | |
| - | |
Interest income of discounted electricity subsidy in China | |
| (161 | ) | |
| 60 | | |
| 53 | |
Foreign exchange loss (gain) | |
| 3,235 | | |
| 1,390 | | |
| (2,709 | ) |
Adjusted EBITDA | |
$ | 1,162 | | |
$ | (2,622 | ) | |
$ | (479 | ) |
v3.24.1.1.u2
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|
May 23, 2024 |
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149 Water Street
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