STAMFORD, Conn., March 18, 2024 /PRNewswire/ -- Emeren Group Ltd ("Emeren" or the "Company") (www.emeren.com) (NYSE: SOL), a leading global solar project developer, owner, and operator, today announced that it will report its unaudited financial results for the fourth quarter and full year ended December 31, 2023 after the U.S. stock market close on Thursday, March 28, 2024. The Company will host a conference call to discuss the financial results at 5:00 p.m. U.S. Eastern Time on Thursday, March 28, 2024.Wh ...

STAMFORD, Conn., March 15, 2024 /PRNewswire/ -- Emeren Group Ltd ("Emeren" or the "Company") (www.emeren.com) (NYSE: SOL), a leading global solar project developer, owner, and operator, today announced the successful co-development agreement of 155 MW (up to 1.24GWh of capacity) of Battery Storage Projects in two regions of Southern Italy with Glennmont Partners from Nuveen ("Glennmont"), one of the world's largest fund managers investing in clean energy. The partnership will involve Glennmont and Emeren jo ...

Group 1 - Emeren Group Ltd will participate in one-on-one or small group meetings with institutional investors at the 36th Annual Roth conference from March 17th to 19th in Dana Point, CA [1] - Emeren Group Ltd is a leading global solar project developer, owner, and operator with a project pipeline and IPP assets totaling over 3 GW [2] - The company has a storage pipeline of over 10 GWh across Europe, North America, and Asia [2] Group 2 - Emeren Group focuses on solar power project development, construction management, and project financing services [2] - The company operates with local professional teams across multiple countries [2]

STAMFORD, Conn., Feb. 12, 2024 /PRNewswire/ -- Emeren Group Ltd ("Emeren" or the "Company") (www.emeren.com) (NYSE: SOL), a leading global solar project developer, owner, and operator, today announced that its Board of Directors has approved an accelerated stock repurchase (ASR) program of up to $10 million and could be completed by the end of March 2024. This ASR is incremental to the $11 million remaining authorization in Emeren's buyback program at the end of Q3 2023. Yumin Liu, CEO of Emeren Group, stat ...

STAMFORD, Conn., Jan. 25, 2024 /PRNewswire/ -- Emeren Group Ltd ("Emeren" or the "Company") (www.emeren.com) (NYSE: SOL), a leading global solar project developer, owner, and operator, today provided a preliminary unaudited overview of its key financial results for the full year 2023, highlighting notable achievements and providing insights into the Company's strategic plans moving forward. Positive Operating Cash Flow and Strong Cash Position: As of December 31, 2023, Emeren achieved a cash balance of $70 ...

Emeren Group Ltd. (SOL) recently completed the acquisition of a 10.76 Megawatt-hour (MWh) energy storage power portfolio from Kunneng Smart Energy Service Group Co. Ltd., in China.The portfolio comprises six energy storage power stations and is located in the Zhejiang Province. It operates under the Energy Management Services agreements, providing benefits to customers based on energy arbitrage.As of now, all six facilities are connected to the virtual power plant (VPP) platform. Emeren Group will earn its ...

Core Insights - Emeren Group Ltd has successfully acquired a 10.76 MWh energy storage power portfolio from Kunneng Smart Energy Service Group, enhancing its position in the renewable energy sector in China [1][2] - The acquisition includes six energy storage power stations located in Zhejiang Province, which will operate under Energy Management Services agreements to provide benefits through energy arbitrage [1][2] - Emeren aims to strengthen its position in the Chinese energy storage investment market and expand its global storage strategies, particularly in the Virtual Power Plant (VPP) market [2] Company Overview - Emeren Group Ltd is a leading global solar project developer with a project pipeline and IPP assets totaling over 3 GW, alongside a storage pipeline exceeding 10 GWh across Europe, North America, and Asia [3] - The company focuses on solar power project development, construction management, and project financing services, supported by local professional teams in multiple countries [3]

[Shareholder Letter & Q3 Business Overview](index=1&type=section&id=Shareholder%20Letter%20%26%20Q3%20Business%20Overview) This section provides an overview of the company's third-quarter performance, key challenges, strategic project developments, and future outlook [Q3 Performance & Key Challenges](index=1&type=section&id=Q3%20Performance%20%26%20Key%20Challenges) Q3 revenue was $13.9 million with a 40.8% gross margin and $9.4 million net loss, primarily due to a Hungarian project approval delay now secured for Q4 recognition Q3 Key Financial Metrics | Metric | Amount | | :--- | :--- | | Revenue | $13.9 million | | Gross Margin | 40.8% | | Net Loss | $9.4 million | - The primary reason for Q3 revenue falling below expectations was the delay in government approval for the Hungary 53 MW solar NTP project, which was secured on November 20, 2023, with revenue to be recognized in Q4[1](index=1&type=chunk) [Impact of One-Time Expenses](index=1&type=section&id=Impact%20of%20One-Time%20Expenses) Third-quarter results were significantly affected by several one-time non-cash expenses, including foreign exchange losses, asset impairment, and expensed development costs One-Time Non-Cash Expenses | Expense Type | Amount (million USD) | | :--- | :--- | | Foreign Exchange Loss | $4.8 | | Asset Impairment and Write-offs | $4.5 | | Development Costs Expensed | $1.3 | - Excluding one-time non-cash expenses, the company's third-quarter performance would have reached breakeven[2](index=2&type=chunk) [IPP Asset Contribution](index=1&type=section&id=IPP%20Asset%20Contribution) The company continues to benefit from its IPP assets, particularly the UK 50 MW Branston project and the China 156 MW rooftop solar portfolio, which together contributed $9.4 million in Q3 revenue - IPP assets contributed **$9.4 million** in Q3 revenue, primarily from the UK 50 MW Branston project and the China 156 MW rooftop solar asset portfolio[2](index=2&type=chunk) [Strategic Project Developments](index=1&type=section&id=Strategic%20Project%20Developments) The company achieved several strategic project milestones in Q3, including grid connection of its first storage project in China, sale of a large battery storage system portfolio in Italy, and continued solar and storage project development in North America [China Project Developments](index=1&type=section&id=China%20Project%20Developments) The company successfully completed grid connection for its first solar-plus-storage project in China and is advancing its commercial and industrial storage pipeline - Successfully completed grid connection for the China Ningbo 0.6 MW/1.2 MWh solar-plus-storage project, designed for high returns through daily electricity price arbitrage[3](index=3&type=chunk) - China's advanced-stage storage project pipeline exceeds **80 MWh**, all commercial and industrial scale, with several currently under construction[3](index=3&type=chunk) [European Storage Project Developments](index=1&type=section&id=European%20Storage%20Project%20Developments) The company successfully sold a significant battery energy storage system portfolio in Italy, expanding its total storage project capacity with Matrix Renewables - Successfully sold a 410 MW five Battery Energy Storage System (BESS) portfolio in Italy to Matrix Renewables, bringing the total storage project capacity with Matrix to **3.8 GWh**[4](index=4&type=chunk) - This Italian project portfolio is expected to reach "Ready-To-Build" status by the end of 2024[4](index=4&type=chunk) [North America Project Developments & Storage Strategy](index=1&type=section&id=North%20America%20Project%20Developments%20%26%20Storage%20Strategy) The North America team is actively expanding its solar and storage project pipeline through new site acquisitions and advancing existing developments, with a focus on a light-asset IPP strategy - The North America team continues to focus on expanding its solar and storage project pipeline by acquiring new project sites and advancing existing project developments[5](index=5&type=chunk) - North America's advanced-stage storage project pipeline has significantly grown to **3.8 GWh** since the last quarter[5](index=5&type=chunk) - The company plans to further expand its storage project portfolio under a light-asset IPP strategy[5](index=5&type=chunk) [Pipeline Growth & Future Outlook](index=1&type=section&id=Pipeline%20Growth%20%26%20Future%20Outlook) As of the end of Q3, the company's advanced-stage storage project pipeline has grown to over 10 GWh, with solar project pipeline expected to reach at least 3.5 GW by year-end 2023 - As of the end of Q3, the advanced-stage storage project pipeline has grown to over **10 GWh**[6](index=6&type=chunk) - The advanced-stage solar project pipeline is expected to reach at least **3.5 GW** by the end of 2023[6](index=6&type=chunk) - The company plans to monetize approximately **400 to 500 MW** of solar projects in 2024 and beyond[6](index=6&type=chunk) [Full Year & Q4 2023 Financial Guidance](index=2&type=section&id=Full%20Year%20%26%20Q4%202023%20Financial%20Guidance) The company has adjusted its full-year 2023 guidance, projecting revenue between $110 million and $113 million, net profit of $3 million to $4 million, and a gross margin of 25% to 28% Full Year 2023 Financial Guidance | Metric | Range | | :--- | :--- | | Revenue | $110 - $113 million | | Net Profit | $3 - $4 million | | Gross Margin | 25% - 28% | Q4 2023 Financial Guidance | Metric | Range | | :--- | :--- | | Revenue | $50 - $53 million | | Gross Margin | 21% - 25% | | Net Profit | $4 - $5 million | [Strategic Outlook & Shareholder Value](index=2&type=section&id=Strategic%20Outlook%20%26%20Shareholder%20Value) Despite global uncertainties, the company remains confident in the long-term growth of the solar industry and is committed to becoming a leading global solar and storage developer - The company is confident in the long-term growth of the solar industry and is well-positioned with its strong project pipeline[8](index=8&type=chunk) - **$4 million** was returned to shareholders in Q3 through the share repurchase program, with continued market activity planned for Q4[8](index=8&type=chunk)[22](index=22&type=chunk) [Q3 2023 Financial Highlights](index=2&type=section&id=Q3%202023%20Financial%20Highlights) This section provides a detailed overview of the company's key financial metrics, revenue breakdown by business segment, and regional revenue contributions for the third quarter of 2023 [Key Financial Metrics Overview](index=2&type=section&id=Key%20Financial%20Metrics%20Overview) Q3 gross margin reached 40.8%, exceeding guidance, while revenue decreased 42% year-over-year and 59% quarter-over-quarter, resulting in a net loss of $9.4 million Q3 2023 Key Financial Metrics (million USD, unless otherwise specified) | Metric | Q3'23 | Q2'23 | QoQ Change | Q3'22 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $13.9 | $33.8 | -59% | $23.9 | -42% | | Gross Profit | $5.7 | $12.7 | -55% | $4.5 | +26% | | Operating Income/(Loss) | ($4.0) | $5.0 | -178% | $1.0 | -490% | | EBITDA | ($6.8) | $8.8 | -177% | $2.3 | -402% | | Adjusted EBITDA | ($0.2) | $9.3 | -102% | $2.7 | -108% | | Net Income/(Loss) Attributable to Emeren Group Ltd | ($9.4) | $8.3 | -212% | ($1.1) | -777% | [Revenue Breakdown by Segment](index=2&type=section&id=Revenue%20Breakdown%20by%20Segment) In Q3, the IPP business was the largest contributor, accounting for 67% of total revenue ($9.366 million), followed by project development at 17% and EPC at 15% Q3 2023 Revenue Breakdown by Business Segment | Business Segment | Q3'23 Revenue (thousand USD) | Percentage of Total Revenue | | :--- | :--- | :--- | | Project Development | $2,300 | 17% | | IPP | $9,366 | 67% | | EPC | $2,109 | 15% | | Other | $173 | 1% | | Total | $13,948 | 100% | [Revenue Breakdown by Region](index=2&type=section&id=Revenue%20Breakdown%20by%20Region) Third-quarter revenue was primarily driven by Europe, contributing 68% ($9.462 million) of total revenue, with China accounting for 30% and the US for 2% Q3 2023 Revenue Breakdown by Region | Region | Q3'23 Revenue (thousand USD) | Percentage of Total Revenue | | :--- | :--- | :--- | | Europe | $9,462 | 68% | | China | $4,155 | 30% | | United States | $331 | 2% | | Total | $13,948 | 100% | [Project Pipeline & IPP Assets](index=3&type=section&id=Project%20Pipeline%20%26%20IPP%20Assets) This section details the company's solar development and storage project pipelines, along with its IPP asset portfolio as of September 30, 2023 [Solar Development Project Pipeline](index=3&type=section&id=Solar%20Development%20Project%20Pipeline) As of September 30, 2023, the company's total solar development project pipeline was 7,762 MW, comprising 2,894 MW in advanced stages and 4,868 MW in early stages, with Europe holding the largest share [By Region](index=3&type=section&id=By%20Region) Europe holds the largest share of the solar project pipeline, with 6,075 MW in total, followed by the United States with 1,603 MW Solar Project Pipeline by Region (as of Sep 30, 2023) | Region | Advanced Stage (MW) | Early Stage (MW) | Total (MW) | | :--- | :--- | :--- | :--- | | Europe | 1,503 | 4,572 | 6,075 | | United States | 1,307 | 296 | 1,603 | | China | 84 | - | 84 | | Total | 2,894 | 4,868 | 7,762 | [By Country](index=3&type=section&id=By%20Country) Spain and Germany represent significant portions of the solar project pipeline, with 2,814 MW and 1,558 MW respectively, across various development stages Solar Project Pipeline by Country (as of Sep 30, 2023) | Country | Advanced Stage (MW) | Early Stage (MW) | Total (MW) | | :--- | :--- | :--- | :--- | | Poland | 538 | - | 538 | | Hungary | 49 | - | 49 | | United Kingdom | 100 | - | 100 | | Spain | 135 | 2,679 | 2,814 | | Germany | 106 | 1,452 | 1,558 | | France | 107 | 44 | 151 | | Italy | 468 | 397 | 865 | | United States | 1,307 | 296 | 1,603 | | China | 84 | - | 84 | | Total | 2,894 | 4,868 | 7,762 | [Solar Storage Project Pipeline](index=3&type=section&id=Solar%20Storage%20Project%20Pipeline) As of September 30, 2023, the company's total solar storage project pipeline was 17,282 MWh, with 10,288 MWh in advanced stages and 6,994 MWh in early stages, led by Europe in advanced capacity [By Region](index=3&type=section&id=By%20Region) Europe leads in advanced-stage storage capacity with 6,440 MWh, contributing to a total regional pipeline of 10,398 MWh Solar Storage Project Pipeline by Region (as of Sep 30, 2023) | Region | Advanced Stage (MWh) | Early Stage (MWh) | Total (MWh) | | :--- | :--- | :--- | :--- | | Europe | 6,440 | 3,958 | 10,398 | | United States | 3,765 | 3,036 | 6,801 | | China | 83 | - | 83 | | Total | 10,288 | 6,994 | 17,282 | [By Country](index=3&type=section&id=By%20Country) Italy and Poland hold the largest advanced-stage storage capacities, with 2,708 MWh and 3,556 MWh respectively, contributing significantly to the overall pipeline Solar Storage Project Pipeline by Country (as of Sep 30, 2023) | Country | Advanced Stage (MWh) | Early Stage (MWh) | Total (MWh) | | :--- | :--- | :--- | :--- | | Poland | 3,556 | 1,200 | 4,756 | | Hungary | - | - | - | | United Kingdom | 170 | 190 | 360 | | Spain | - | 100 | 100 | | Germany | - | - | - | | France | 6 | - | 6 | | Italy | 2,708 | 2,468 | 5,176 | | United States | 3,765 | 3,036 | 6,801 | | China | 83 | - | 83 | | Total | 10,288 | 6,994 | 17,282 | [IPP Asset Portfolio](index=3&type=section&id=IPP%20Asset%20Portfolio) As of September 30, 2023, Emeren owns and operates 240 MW of IPP projects, with the majority located in China (156 MW), followed by Europe (60 MW) and the United States (24 MW) [Operating Assets Capacity](index=4&type=section&id=Operating%20Assets%20Capacity) The company's operating IPP assets total 240 MW, with China's distributed generation (DG) projects representing the largest share Operating Assets Capacity (MW) as of Sep 30, 2023 | Region | Capacity (MW) | | :--- | :--- | | Europe | 60 | | United States | 24 | | China DG | 156 | | Total | 240 | [Detailed Q3 2023 Financial Results](index=5&type=section&id=Detailed%20Q3%202023%20Financial%20Results) This section provides an in-depth analysis of the company's revenue, gross margin, operating expenses, net income, cash flow, financial position, and share repurchase activities for the third quarter of 2023 [Revenue and Gross Margin Analysis](index=5&type=section&id=Revenue%20and%20Gross%20Margin%20Analysis) Third-quarter revenue was $13.9 million, a 42% year-over-year and 59% quarter-over-quarter decrease, primarily due to delays in the Hungarian project license, while gross margin significantly improved to 40.8% - Q3 revenue was **$13.9 million**, a 42% year-over-year and 59% quarter-over-quarter decrease, mainly due to the extended licensing approval process for the Hungary 53 MW NTP project[20](index=20&type=chunk) Revenue and Gross Margin | Metric | Q3 2023 | | :--- | :--- | | Revenue | $13.9 million | | Gross Profit | $5.7 million | | Gross Margin | 40.8% | - Gross margin was **40.8%**, higher than Q2 2023's 37.4% and Q3 2022's 18.9%[20](index=20&type=chunk) [Operating Expenses and Net Income](index=5&type=section&id=Operating%20Expenses%20and%20Net%20Income) Operating expenses increased to $9.6 million, driven by $4.5 million in asset impairment and write-offs and $1.3 million in expensed development costs, leading to a net loss of $9.4 million attributable to Emeren Group Ltd - Operating expenses were **$9.6 million**, increasing both year-over-year and quarter-over-quarter, primarily due to **$4.5 million** in asset impairment and write-offs and **$1.3 million** in expensed development costs[21](index=21&type=chunk) Net Income (Loss) | Metric | Q3 2023 | | :--- | :--- | | Net Loss Attributable to Emeren Group Ltd Common Shareholders | $9.4 million | | Diluted Net Loss per ADS | $0.17 | [Cash Flow, Financial Position, and Share Buyback](index=5&type=section&id=Cash%20Flow%2C%20Financial%20Position%2C%20and%20Share%20Buyback) Q3 saw a $4.6 million cash outflow from operating activities, a $10.1 million cash inflow from investing activities, and a $6.7 million cash outflow from financing activities, with cash and cash equivalents totaling $59.2 million at quarter-end Q3 2023 Cash Flow | Activity Type | Amount (million USD) | | :--- | :--- | | Net Cash Used in Operating Activities | $4.6 | | Net Cash Provided by Investing Activities | $10.1 | | Net Cash Used in Financing Activities | $6.7 | Financial Position | Metric | As of Q3 2023 | | :--- | :--- | | Cash and Cash Equivalents | $59.2 million | | Debt-to-Asset Ratio | 9.93% | - Approximately **$4 million** in ADSs were repurchased this quarter, with approximately **$11 million** remaining authorized under the share repurchase program[22](index=22&type=chunk) [Overall Conclusion](index=6&type=section&id=Overall%20Conclusion) Emeren Group Ltd expresses confidence in the future growth of the solar industry, emphasizing its solid strategy and strong track record, aiming to be a leading global solar and storage developer while continuously creating shareholder value - The company is optimistic about the coming quarters, driven by broad social and governmental support for renewable energy that will foster solar project growth[23](index=23&type=chunk) - With its expertise in solar project development, strong industry network, and robust balance sheet, the company is progressing towards becoming a leading global solar and storage developer[8](index=8&type=chunk) [Appendix: Unaudited Consolidated Financial Statements](index=7&type=section&id=Appendix%3A%20Unaudited%20Consolidated%20Financial%20Statements) This appendix presents the unaudited consolidated statements of operations, balance sheet, and cash flow for Emeren Group Ltd, providing a comprehensive view of the company's financial performance and position [Unaudited Consolidated Statement of Operations](index=7&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Operations) The consolidated statement of operations shows net revenue of $13.948 million for Q3 2023, with a net loss of $9.017 million and a diluted net loss per ADS of $0.17 attributable to Emeren Group Ltd Unaudited Consolidated Statement of Operations (thousand USD, except per ADS data) | Metric | Sep 30, 2023 | Jun 30, 2023 | Sep 30, 2022 | | :--- | :--- | :--- | :--- | | Net Revenue | $13,948 | $33,846 | $23,904 | | Cost of Revenue | ($8,263) | ($21,184) | ($19,388) | | Gross Profit | $5,685 | $12,662 | $4,516 | | Selling and Marketing Expenses | ($74) | ($127) | - | | General and Administrative Expenses | ($6,964) | ($5,329) | ($3,597) | | Other Operating Income/(Expenses) | ($2,606) | ($2,160) | $95 | | Total Operating Expenses | ($9,644) | ($7,616) | ($3,502) | | Operating Income/(Loss) | ($3,959) | $5,046 | $1,014 | | Interest Income/(Expense), Net | ($79) | $375 | ($1,009) | | Investment Income | $57 | $105 | $62 | | Foreign Exchange Gain/(Loss) | ($4,785) | $2,119 | ($391) | | Total Other Income/(Expenses), Net | ($4,807) | $2,599 | ($1,338) | | Income/(Loss) Before Income Taxes | ($8,766) | $7,645 | ($324) | | Income Tax Benefit/(Expense) | ($251) | $37 | ($171) | | Net Income/(Loss), After Tax | ($9,017) | $7,682 | ($495) | | Less: Net Income/(Loss) Attributable to Non-Controlling Interests | $373 | ($666) | $576 | | Net Income/(Loss) Attributable to Emeren Group Ltd | ($9,390) | $8,348 | ($1,071) | | Income/(Loss) per ADS Attributable to Emeren Group Ltd - Diluted | ($0.17) | $0.14 | ($0.02) | [Unaudited Consolidated Balance Sheet](index=8&type=section&id=Unaudited%20Consolidated%20Balance%20Sheet) As of September 30, 2023, the company's total assets were $454.4 million, a decrease from $477.7 million on June 30, 2023, with total liabilities at $93.751 million and total shareholders' equity at $360.7 million Unaudited Consolidated Balance Sheet (thousand USD) | Metric | Sep 30, 2023 | Jun 30, 2023 | Sep 30, 2022 | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash and Cash Equivalents | $59,171 | $60,450 | $122,988 | | Short-Term Investments in Treasury Bills | $10,115 | $10,057 | - | | Accounts Receivable, Net | $19,187 | $25,511 | $36,033 | | Unbilled Accounts Receivable | $50,591 | $53,290 | $12,059 | | Project Assets, Current | $42,350 | $33,159 | $20,008 | | Total Current Assets | $213,530 | $229,123 | $211,729 | | Property, Plant and Equipment, Net | $151,813 | $155,094 | $161,846 | | Project Assets, Non-Current | $33,846 | $37,078 | $15,940 | | Total Assets | $454,428 | $477,688 | $464,164 | | **Liabilities and Shareholders' Equity** | | | | | Short-Term Borrowings | $1,015 | $750 | $394 | | Accounts Payable | $3,131 | $5,367 | $6,535 | | Customer Advances | $4,743 | $4,598 | $202 | | Total Current Liabilities | $39,539 | $41,831 | $33,964 | | Long-Term Borrowings | $21,734 | $22,742 | $20,816 | | Total Liabilities | $93,751 | $98,928 | $88,416 | | Total Equity Attributable to Emeren Group Ltd | $322,344 | $340,516 | $335,096 | | Total Shareholders' Equity | $360,677 | $378,760 | $375,748 | | Total Liabilities and Shareholders' Equity | $454,428 | $477,688 | $464,164 | [Unaudited Consolidated Statement of Cash Flow](index=10&type=section&id=Unaudited%20Consolidated%20Statement%20of%20Cash%20Flow) In Q3 2023, net cash outflow from operating activities was $4.644 million, net cash inflow from investing activities was $10.118 million, and net cash outflow from financing activities was $6.71 million, with total cash, cash equivalents, and restricted cash at $59.181 million at quarter-end Unaudited Consolidated Statement of Cash Flow (thousand USD) | Metric | Sep 30, 2023 | Jun 30, 2023 | Sep 30, 2022 | | :--- | :--- | :--- | :--- | | Net Cash Provided by/(Used in) Operating Activities | ($4,644) | ($2,353) | ($7,696) | | Net Cash Provided by/(Used in) Investing Activities | $10,118 | $116 | ($28,598) | | Net Cash Provided by/(Used in) Financing Activities | ($6,710) | $1,160 | ($45,784) | | Effect of Exchange Rate Changes | ($39) | ($5,204) | ($2,961) | | Net Decrease in Cash, Cash Equivalents, and Restricted Cash | ($1,275) | ($6,281) | ($85,039) | | Cash, Cash Equivalents, and Restricted Cash at Beginning of Period | $60,456 | $66,737 | $208,032 | | Cash, Cash Equivalents, and Restricted Cash at End of Period | $59,181 | $60,456 | $122,993 | [Appendix: Non-GAAP Financial Measures](index=11&type=section&id=Appendix%3A%20Non-GAAP%20Financial%20Measures) This appendix defines and provides the rationale for Emeren Group Ltd's use of non-GAAP financial measures, including a reconciliation of Adjusted EBITDA to GAAP net income [Definition and Rationale](index=11&type=section&id=Definition%20and%20Rationale) Emeren Group Ltd utilizes non-GAAP financial measures like EBITDA and Adjusted EBITDA to supplement its GAAP financial statements, offering additional insights for investors to better understand management's financial and decision-making information - EBITDA is defined as net income before income tax expense, interest expense, depreciation, and amortization[27](index=27&type=chunk) - Adjusted EBITDA is defined as EBITDA adjusted for China electricity subsidy discounts, share-based compensation, impairment of long-lived assets, gain or loss on disposal of assets, and foreign exchange gain or loss[27](index=27&type=chunk) - Management uses these non-GAAP metrics to assess the profitability and efficiency of the business model and analyze the strengths of operations across different periods and over the long term[28](index=28&type=chunk) [Adjusted EBITDA Reconciliation](index=12&type=section&id=Adjusted%20EBITDA%20Reconciliation) The reconciliation table shows that for Q3 2023, the company's net loss was $9.017 million, which, after adjustments for income tax, interest, depreciation, amortization, share-based compensation, asset impairment, and foreign exchange, resulted in an Adjusted EBITDA of negative $0.221 million Adjusted EBITDA Reconciliation (thousand USD) | Metric | Sep 30, 2023 | Jun 30, 2023 | Sep 30, 2022 | | :--- | :--- | :--- | :--- | | Net Income (Loss) | ($9,017) | $7,682 | ($495) | | Income Tax Expense (Benefit) | $251 | ($37) | $171 | | Interest Expense (Income), Net | $79 | ($375) | $1,009 | | Depreciation and Amortization | $1,864 | $1,544 | $1,573 | | **EBITDA** | **($6,823)** | **$8,814** | **$2,258** | | China Electricity Subsidy Discount | ($35) | $163 | - | | Share-Based Compensation | $391 | $407 | $8 | | Impairment of Long-Lived Assets | $1,325 | - | - | | Loss on Disposal of Property, Plant and Equipment | - | $2,128 | - | | Interest Income from China Electricity Subsidy Discount | $136 | ($87) | - | | Foreign Exchange Loss (Gain) | $4,785 | ($2,119) | $391 | | **Adjusted EBITDA** | **($221)** | **$9,306** | **$2,657** |

Financial Data and Key Metrics Changes - The company reported Q3 2023 revenue of $13.9 million, a decrease of 42% year-over-year and 59% sequentially from Q2 2023 [11] - Gross margin was 40.8%, up from 37.4% in Q2 2023 and 18.9% in Q3 2022, indicating improved profitability despite lower revenue [12] - Net loss for Q3 was $9.4 million, compared to a net income of $8.3 million in Q2 2023 and a net loss of $1.1 million in Q3 2022 [13] Business Line Data and Key Metrics Changes - The company generated $9.4 million in revenue from its IPP assets, particularly from the U.K. 50 megawatt Branston project and a 156 megawatt portfolio in China [6] - The advanced-stage storage project pipeline grew to 3.8 gigawatt hours, contributing to the company's strategic goals [9] - The advanced-stage solar project pipeline is expected to reach at least 3.5 gigawatts by the end of 2023, with plans to monetize 400 to 500 megawatts in 2024 and beyond [10] Market Data and Key Metrics Changes - The company successfully completed the grid connection of its first solar storage project in Ningbo, China, with a capacity of 1.2 megawatt hours [7] - The sale of a portfolio of five Battery Energy Storage Systems in Italy to Matrix Renewables was announced, with a total capacity of 410 megawatts [8] - The company noted favorable pricing conditions in Europe, with off-take prices remaining strong compared to three to four years ago [25] Company Strategy and Development Direction - The company aims to expand its storage portfolio under its light IPP strategy, emphasizing sustainable and innovative energy solutions [9] - The management is optimistic about the future, expecting a strong Q1 2024 due to project closings being pushed from Q4 2023 [21][22] - The company plans to continue executing its share buyback program, with approximately $11 million remaining in authorization [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in 2024, expecting tailwinds from policy changes and improved execution across the board in the U.S., Europe, and China [19] - The company anticipates revenue for the full year 2023 to be in the range of $110 million to $113 million, with Q4 revenue expected between $50 million and $53 million [10] - Management highlighted that the current economic environment, including lower CapEx and strong off-take prices, supports a positive outlook for project valuations [31][25] Other Important Information - The company recorded a $4.8 million foreign exchange loss and a $4.5 million one-time expense from impairment and write-off of assets due to permitting challenges [6][12] - Cash and cash equivalents at the end of Q3 2023 were $59.2 million, slightly down from $60.5 million in Q2 2023 [13] Q&A Session Summary Question: Can you quantify the megawatts impacted by the impairment? - Management indicated that the majority of the impairment was from the U.S., affecting about 200 megawatts of utility projects, and does not expect further write-offs in Q4 [17] Question: What is the outlook for pricing power in Europe? - Management believes off-take prices remain strong, with current prices higher than three to four years ago, supporting project evaluations [25] Question: How much cash is expected to be collected over the next two quarters? - The company expects to collect between $20 million to $40 million in cash [56] Question: How will the storage pipeline contribute to revenue? - Management stated that independent storage facilities are expected to contribute a minimum of 15% to 20% of overall revenues starting in 2024 [60] Question: What is the strategy regarding buybacks? - The company plans to continue its buyback program, confident in its future cash flow and balance sheet health [52]

Q3 2023 Earnings Presentation November 21, 2023 SOL LISTED NYSE ...