) has entered into an agreement with China Development Bank to
take a 15-year loan worth approximately $50.9 million. The
company's main objective for taking this loan is to expand and
strengthen its Chinese operations.
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China Development Bank continues to support the Chinese solar
power product manufacturers and service providers in terms of
disbursing loans and providing financial assistance. In Jan 2013,
another photovoltaic (PV) products manufacturer
LDK Solar Co., Ltd.
) got a lending-approval of $69.8 million from China Development
Bank to improve its Mahong polysilicon facility.
U.S. solar markets are gradually becoming less lucrative for the
Chinese solar module manufacturers. The U.S. Department of
Commerce (DOC) adopted countervailing duties of 15.24% and
anti-dumping duties of effectively 25.96%. The U.S. DOC rolled
out these tariffs to constrict the supply of the Chinese
solar-products in the U.S. and encourage domestic players to tap
the growing renewable U.S. market. These steps will take a severe
toll on the Chinese solar power product manufacturers businesses
in North America.
Currently, most of the Chinese solar product manufacturers are
busy searching new markets. Most of solar product manufacturers,
including ReneSola, intend to increase their presence in China
and tap the domestic prospects due to the higher demand of solar
modules. A solar product manufacturer
JinkoSolar Holding Co. Ltd
) has already delivered its first batch of the 100 kilowatt peak
(kWp) rooftop solar PV power generation system to Eaton Electric
Co., Ltd, a subsidiary of
Eaton Corporation plc
), in Shenzhen, China.
ReneSola has already experienced strong performance from China
during fourth-quarter 2012. Its net revenue increased 63.3% year
over year to $306.5 million and total solar product shipments
rose 33.9% sequentially to 713.2 megawatts. Improvement in the
performance was primarily backed by higher demand for solar
modules, in particular from China, and increasing competitiveness
of solar power as a power source.
It is evident from ReneSola's recent activities and transactions
that it is currently in an expansion mode. Apart from increasing
its presence in China, the company continues to spread its
operations in Asian, European and Middle East markets. To
reinforce its business functions in the Asia Pacific, Middle East
and Africa region, the company established its sales office in
Singapore with its local subsidiary ReneSola Singapore Pte., Ltd
and set up a Japanese subsidiary, ReneSola Japan Ltd., in Oct
As of Dec 31, 2012, ReneSola had cash and cash equivalents plus
restricted cash of $268.1 million and net cash inflow from
operating activities was $25.8 million in fourth-quarter 2012.
In addition to the external funding, the company's strong
financial status enables it to spend more in its global
operations along with the installation of sophisticated
manufacturing techniques to minimize solar module manufacturing
costs, which will subsequently improve forthcoming margins.
China-based ReneSola is a leading global manufacturer of solar
wafers and a producer of solar power products. The company
possesses a global network of suppliers and customers. ReneSola
currently has a Zacks Rank #2 (Buy).