--Several Actions Taken to Protect Employees and Partners--
--Updates First Quarter 2020 Guidance--
PVTIME - ReneSola Power Inc. ("ReneSola" or the "Company") (www.renesolapower.com) (NYSE: SOL), a leading fully integrated solar project developer, today discussed recent initiatives taken to help it prudently manage its business during the COVID-19 pandemic. The company also updated first quarter guidance to reflect the impact of those protective measures.
As the crisis took hold in its major markets in Europe and the U.S. in March, the Company immediately
implemented initiatives to ensure the health and well-being of its employees
and business partners, and to support government efforts to control the
pandemic. Beginning in early March, the Company transitioned all its
employees from sales offices in Europe and the
U.S. to a remote work environment, with a few exceptions where physical
presence is necessary for operation of projects. The Company's single office in
Shanghai, China re-opened in mid-February, having
been closed since late January, at the start of the Chinese Lunar New Year
holiday.
ReneSola Power operates in the energy industry, which is
federally identified as a critical infrastructure sector in the
U.S. Therefore, the Company is able to conduct business while protecting
its employees. In addition to protecting the health of its stakeholders, the
Company considers it vitally important to economically support its employees
and communities.
Work continues at individual projects in the U.S. and internationally
based on their stage of development. Projects in phases conducive to
remote/electronic work continue uninterrupted; these stages include financing,
design, permitting, sales, etc. Some projects
under construction will be temporarily delayed as the Company awaits delivery
of key parts, such as modules. Construction continues uninterrupted at
projects that have all components delivered.
The Company also updated its first quarter 2020 guidance
due to the impact of the COVID-19 situation. The closing of a sale of two
projects in Hungary was delayed from its
scheduled time in late March. Cancellation of in-person meetings, along
with the temporary closing of financial institutions, delayed by a few days the
completion of all necessary documentation. The sale closed on April 7; revenue from the sale will be recognized in the
second quarter.
Because of the delay, the Company now expects first quarter
revenue to be in the range of $18 to $20 million, and gross margin is expected to be in the
range of 6% to 7%. The Company is not changing full year 2020 guidance.
"During these trying times, our primary focus remains
on the safety and well-being of our employees, business partners and
customers," said Yumin Liu, Chief Executive
Officer of ReneSola Power. "We took decisive action to protect our
employees, while also sustaining the efficient operation of our business. Work
progresses even as we await the 'all clear' from authorities, at which time we
can assume normal operations. During the crisis, we were able to complete
the sale of projects in Canada and Hungary, and we received additional credit facilities
from government programs to assist our working capital and general corporate
purposes. We are proud to have minimized the economic impact on our business,
while maximizing the care for our employees, both physically and
financially."
