Aug 13, 2014 - Chinese firm ReneSola Ltd (NYSE:SOL) is betting on markets with comparatively higher selling prices for photovoltaic (PV) modules and better payment terms so has already refused some orders from China and India.
In a conference call yesterday for its second-quarter 2014 results, the solar products maker explained that it does not aim to ship as much modules as possible, but is more focused on profitability. Orders with very low average selling prices (ASPs) are not of interest for ReneSola, according to chief executive Xianshou Li.
For the April-June period the company shipped 498.7 MW of modules, up 14.9% year-on-year and down 4.3% quarter-on-quarter. Europe remained its key market with a share of 31.4% in total shipments, down from 49.4% a year earlier. Japan -- one of the global markets offering the highest module ASPs -- accounted for 23.3%, as compared to only 7.4% in the same period of 2013 and to 22.5% in the preceding quarter of 2014. The rest of ReneSola’s modules went to China, the US and other markets at 15.3%, 11.2% and 18.8%, respectively.
“With our extensive and expanding global network, we expect increasing opportunities among commercial and retail markets with comparatively higher ASPs and better payment terms,” investor relations head Laura Chen said on the conference call.
At a time when most Chinese companies face punitive duties in several markets, and especially in the US, ReneSola is relying on a differentiated global business with localised international operations and a big international original equipment manufacturer (OEM) network. The company has 1.1 GW of module capacity in seven countries, which is to be expanded to 1.5 GW by the summer of 2015.
ReneSolar turned to a second-quarter attributable profit of USD 757,000 (EUR 567,000) from a loss of USD 21.1 million a year earlier.