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Renesola Ltd. ADR (SOL+11.05%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in net revenue to $12.9 million from $13.9 million in the same quarter the previous year. This decrease is attributed to a reduction in solar power project development and EPC services revenue.
Cost of revenue for the quarter was $7.2 million, compared to $8.3 million in the same quarter of the previous year. This decrease is due to lower project development and acquisition costs.
The company reported a gross profit of $5.6 million for the quarter, compared to $5.7 million in the previous year, with the gross margin increasing to 43.8% from 40.8%.
General and administrative expenses decreased to $4.0 million from $7.0 million, primarily due to decreases in stock-based compensation, consulting, and other expenses.
Net income for the quarter was $5.7 million, compared to a net loss of $9.0 million in the previous year. This improvement is largely due to foreign exchange gains and decreased operating expenses.
Cash used in operating activities was $14.6 million, while cash used in investing and financing activities was $10.6 million and $8.7 million, respectively.
Renesola had a working capital of $163.0 million as of September 30, 2024. The company believes its cash and cash equivalents, project assets, and support from financial institutions will be sufficient to meet future obligations.
The filing also details various financial agreements, including long-term loans obtained by subsidiaries in the UK and China.
Renesola does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a material weakness in its internal controls over financial reporting due to ineffective review and approval procedures at certain subsidiary locations.
Renesola continues to focus on high-margin growth in its Independent Power Production and Development Service Agreement segments, with significant contributions from its European and China assets.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Renesola Ltd. ADR quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.