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Washington, D.C. 20549












Date of report (Date of earliest event reported): May 23, 2024





(Exact Name of Registrant as Specified in Its Charter)




British Virgin Islands 001-33911 N/A

(State or other jurisdiction

of incorporation)


File Number)

(IRS Employer

Identification No.)


149 Water Street, Suite 302

Norwalk, Connecticut

(Address of principal executive offices) (Zip Code)


Registrant’s telephone number, including area code: +1 925-425-7335



(Former name or former address, if changed since last report.)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Securities registered pursuant to Section 12(b) of the Act:


Title of each class   Trading Symbol(s)   Name of each exchange on which registered
American Depositary Shares, each representing Common stock, 10 shares, no par value per share   SOL   New York Stock Exchange


Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.


Emerging growth company ¨


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨






Item 2.02 Results of Operations and Financial Condition.


On May 23, 2024, Emeren Group Ltd (the “Company”) issued a press release announcing its financial results and providing a business update as of and for the first quarter ended March 31, 2024. A copy of this press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.


The information furnished in this Item 2.02, including Exhibit 99.1, is not deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section. This information will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.


Item 9.01 Financial Statements and Exhibits.


(d) Exhibits:


Exhibit No.   Description
99.1   Press Release issued by Emeren Group Ltd on May 23, 2024
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)







Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


Date: May 28, 2024 By: /s/ Ke Chen
    Ke Chen
    Chief Financial Officer




Exhibit 99.1



May 23, 2024


Fellow Shareholders,


In the first quarter of 2024, we generated $14.8 million in revenue, marking a 15% increase year over year. Our gross profit soared to $4.0 million, more than doubling from the previous year, with the gross margin reaching 27.2%. The operating loss was approximately $0.7 million, significantly reduced from last year. This substantial growth in revenue was primarily driven by our expanding Development Service Agreement (DSA) business, which generated over $5 million in revenue.


Our effort to improve operational efficiency across all regions is paying off. We decreased operating expenses by over 50% through strategic cost control measures. That progress was offset this quarter by a $0.7 million write-off of cancelled U.S. early-stage projects due to our shifted focus on advanced-stage projects and an unrealized foreign exchange loss of over $3.2 million, which constituted the bulk of our net loss.


We’ll give a quick overview of each of our business lines, starting with the quarterly primary catalyst, then we’ll circle back with more detail later.




Our DSA projects contribute to a stable and predictable business model, enabling revenue recognition at the earliest stages of project development. This approach is proving instrumental in managing risks and maximizing cash flow efficiency across the project lifecycle. In Q1, DSA revenue accounted for 34% of our total, largely driven by battery energy storage system (“BESS”) projects in Italy. Looking ahead, we plan to broaden our DSA partnerships on a global scale.


Concurrently, our BESS pipeline continues to grow steadily globally. We recently signed a DSA agreement for BESS projects in Southern Italy with Nuveen Infrastructure, formerly known as Glennmont Partners, one of the world's largest fund managers specializing in clean energy, aiming for a total power capacity of 199 MW (up to 1.59GWh). In April, we secured an additional agreement with Nuveen for 155 MW (up to 1.24GWh) of battery storage projects, bringing the total power capacity to 354 MWp (up to 2.83GWh).




In Q1, our IPP assets were the primary drivers of growth and profitability, contributing to 38% of our revenue with a gross margin of 44%. IPP continues to be a pivotal component of our business model, providing a dependable source of stable and predictable cash flows. Our IPP revenue is balanced between Europe and China, with a modest presence in the U.S. as of today. In Europe, we have 67 MW of IPP assets that generate recurring revenue. For legacy reasons, we have IPP assets in China, located in the five coastal provinces with favorable power prices, strong economies, and robust regulatory environments. We are now fortifying those assets by adding battery storage to the portfolio. As of the end of Q1, our battery storage portfolio comprised 19 MWh, all integrated into the Virtual Power Plant (“VPP”) platform owned and operated by Huaneng Power International, one of the largest IPP operators in China. The VPP market in China is expanding rapidly.






Project Development


During the quarter, we continued to develop solar and storage projects. As of the end of Q1 2024, we had over 2.6 GW of advanced-stage, high-quality solar projects. We maintain our expectation to monetize approximately 400 to 500 MW of projects in 2024 and beyond. By the end of Q1, our total energy storage project pipeline had increased to over 8 GW (32 GWh).




In conclusion, we are optimistic about our revenue growth potential, which is fueled by strategic initiatives and a robust project pipeline, and our ability to achieve gross margins of over 30%. We are also confident we can continue to lower operating expenses.


As such, we anticipate that our Q2 revenue will fall within the range of $20 to $23 million, with a gross margin between 40 and 45%. For the full year 2024, we reaffirm our expectation for revenue to range from $150 to $160 million and for a gross margin of approximately 30%. Additionally, we expect our net income for 2024 to be around $22 million, with consideration of foreign exchange impact, and expect earnings per American Depositary Share (“ADS”) to be at approximately 43 cents.


We reiterate our expectation for our IPP revenue in 2024 to be between $24 million and $26 million, with a gross margin of approximately 50%. We expect gross margin contributed by DSA globally to be within the range of 15-20%.


With that overview, we will now review the details of our first quarter operating and financial performance.






Q1 2024 Financial Highlights:


Revenue of $14.8 million up 15% y/y and down 66% q/q
Gross profit of $4.0 million, more than doubled from Q1 2023
Gross margin of 27.2%
Adjusted EBITDA of $1.2 million, up from a negative $2.6 million in Q4 2023 and a negative $0.5 million in Q1 2023
Operating loss of $0.7 million, significantly improved from Q4 2023 and Q1 2023


$ in millions  Q1’24   Q4’23   Q/Q   Q1’23   Y/Y 
Revenue  $14.8   $44.0    -66%  $12.9    +15%
Gross profit   4.0    3.3    +20%   1.6    +153%
Operating loss   (0.7)   (6.1)   -89%   (3.0)   -77%
EBITDA   (2.1)   (5.5)   +62%   1.8    -213%
Adjusted EBITDA   1.2    (2.6)   N/M    (0.5)   N/M 
Net loss attributed to Emeren Group Ltd  $(4.4)  $(8.1)   -46%  $(0.2)   N/M 


Revenue by segment:


($ in thousands)
  Q1’24 Revenue   % of Total
IPP   5,571    38%
EPC   4,137    28%
DSA*   5,062    34%
Others   17    0%
Total  $14,787    100%


*DSA: All the DSA revenue in Q1 was generated from BESS projects.


Revenue by region:


($ in thousands)
   % of Total
Europe  $11,500    78%
China   2,880    19%
USA   407    3%
Total  $14,787    100%


Advanced-Stage and Early-Stage Solar Development Project Pipeline


Project Pipeline by Region (as of March 31, 2024):


Region   Advanced






Europe    1,495    5,454    6,949 
U.S.    1,032    920    1,952 
China    85    -    85 
Total    2,612    6,374    8,986 






Project Pipeline by Country (as of March 31, 2024):


Country   Advanced




Poland    440    65    505 
Hungary    35    -    35 
U.K.    110    -    110 
Spain    215    4,415    4,630 
Germany    125    360    485 
France    99    90    189 
Italy    471    524    995 
U.S.    1,032    920    1,952 
China    85    -    85 
Total    2,612    6,374    8,986 


Advanced-Stage and Early-Stage Solar Storage Project Pipeline


Project Pipeline by Region (as of March 31, 2024):


Region   Advanced



Europe    2,460    4,913    7,373 
U.S.    596    -    596 
China    50    -    50 
Total    3,106    4,913    8,019 


Project Pipeline by Country (as of March 31, 2024):



Country   Advanced


Poland    912    630    1,542 
Hungary    -    -    - 
U.K.    170    175    345 
Spain    36    2381    2,417 
Germany    -    -    - 
France    14    -    14 
Italy    1,328    1,727    3,055 
U.S.    596    -    596 
China    50    -    50 
Total    3,106    4,913    8,019 



1.The average hours per MW vary across regions. For example, in the U.S. and Europe, it ranged from 4 - 8 hours per MW of storage, while in China, it was ~2 hours.
2.Q1’24 advanced-stage storage pipeline number for Spain is lower than Q4’23 due to reclassification of projects to early-stage after additional review.


Growing IPP Asset Portfolio in Attractive PPA Regions


As of March 31, we owned and operated IPP assets comprising 255 MW of solar PV projects and 19 MWh of storage.


Operating Assets  PV Capacity (MW)   Storage (MWh) 
China DG   164    19 
Europe   67    - 
U.S.   24    - 
Total   255    19 


Our battery storage IPP portfolio of 19 MWh are all integrated into the Virtual Power Plant (“VPP”) platform owned and operated by Huaneng Power International in Zhejiang Province, China.






Q1 2024 Financial Results:

All figures refer to the first quarter of 2024, unless stated otherwise.




Revenue of $14.8 million represented an increase of 15% year-over-year from Q1 2023 and a decrease of 66% from Q4 2023. The sequential decline was due to normal seasonality, while the year-over-year increase in revenue was primarily driven by our growing DSA business, which accounted for 34%.


Gross Profit and Gross Margin


Gross profit was $4.0 million, compared to $3.3 million in Q4 2023 and $1.6 million in Q1 2023. Gross margin was 27.2%, compared to 7.6% in Q4 2023 and 12.4% in Q1 2023. The gross margin improved sequentially, primarily due to a higher mix of IPP and EPC businesses, both of which had more favorable margins than the previous quarter.


Operating Expense


Operating expenses were $4.7 million, an improvement from $9.5 million in Q4 2023 and comparable to $4.6 million in Q1 2023. Our Q1 operating expenses were impacted by a $0.7 million write-off of cancelled early-stage projects in the U.S.


Net loss attributable to Emeren Group Ltd’s common shareholders


Net loss attributed to Emeren Group Ltd’s common shareholders was $4.4 million, compared to net loss of $8.1 million in Q4 2023 and net loss of $0.2 million in Q1 2023. Diluted net loss attributable to Emeren Group Ltd’s common shareholders per American Depositary Share (“ADS”) was $0.08, compared to diluted net loss of $0.15 in Q4 2023 and diluted net loss of $0.00 in Q1 2023.


Cash Flow


Cash used in operating activities was $3.3 million; cash used in investing activities was $2.6 million, and cash used in financing activities was $8.4 million. Negative operating cash flow was primarily due to delayed payments from Polish projects.


Financial Position


Cash and cash equivalents at the end of Q1 2024 were $55.1 million compared to $70.2 million in Q4 2023.


Net asset value (NAV) is approximately $6.05 per ADS.


Our debt-to-asset ratio at the end of Q1 2024 was 9.99%, compared to 9.44% at the end of Q4 2023.


Shares Buyback


We purchased approximately $6.3 million ADS during the quarter.








Despite short-term market concerns such as high interest rates, lengthy interconnection queues, and the U.S. election cycle, our position is strengthening in the world’s fastest-growing solar markets, which are benefiting from the rising demand for clean energy and supportive governmental policies. Our expertise in developing and operating solar and storage projects, combined with our extensive network of industry partnerships and strong financial standing, are driving us toward our goal of becoming a leading global renewable energy company. We are excited about the bright future of solar energy and are proud to be at the forefront of this remarkable transformation towards a more sustainable future.


We would like to thank our employees for their hard work and dedication. We also want to thank our customers, partners and shareholders for your continued support and confidence in Emeren Group Ltd.





Yumin LiuKe Chen 
Chief Executive OfficerChief Financial Officer 






First Quarter 2024 Earnings Results Conference Call


We will host a conference call today to discuss our first quarter 2024 business and financial results. The call is scheduled to begin at 5:00 p.m. U.S. Eastern Time on Thursday, May 23, 2024.


Please register in advance to join the conference call using the link provided below and dial in 10 minutes before the call is scheduled to begin. Conference call access information will be provided upon registration.


Participant Online Registration:  



Audio-only Webcast:



Additionally, an archived webcast of the conference call will be available on the Investor Relations section of Emeren Group Ltd's website at https://ir.emeren.com/.


Safe Harbor Statement


This press release contains statements that constitute ''forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. Whenever you read a statement that is not simply a statement of historical fact (such as when the Company describes what it "believes," "expects" or "anticipates" will occur, what "will" or "could" happen, and other similar statements), you must remember that the Company’s expectations may not be correct, even though it believes that they are reasonable. The Company does not guarantee that the forward-looking statements will happen as described or that they will happen at all. Further information regarding risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements is included in the Company’s filings with the U.S. Securities and Exchange Commission, including the Company’s annual report on Form 20-F. The Company undertakes no obligation, beyond that required by law, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made, even though the Company’s situation may change in the future.


For investor and media inquiries, please contact:


Emeren Group Ltd

Suzanne Wilson

+1 (510) 631 6550



Emeren Group Ltd - Investor Relations



The Blueshirt Group

Gary Dvorchak

+1 (323) 240-5796







Appendix 1: Unaudited Consolidated Statement of Operations


   Three Months Ended  
   Mar 31, 2024   Dec 31, 2023   Mar 31, 2023 
   (in thousands, except per ADS data and ADS) 
Net revenues  $14,787   $44,000   $12,876 
Cost of revenues   (10,759)   (40,657)   (11,283)
Gross profit   4,028    3,343    1,593 
Operating (expenses)/income:                
Sales and marketing   (142)   (105)   (92)
General and administrative   (4,022)   (7,097)   (4,396)
Other operating expenses   (550)   (2,287)   (108)
Total operating expenses   (4,714)   (9,489)   (4,596)
Loss from operations   (686)   (6,146)   (3,003)
Other (expenses)/income:                
Interest (expenses)/income, net   124    (244)   (133)
Investment income   -    39    77 
Foreign exchange gains/(loss)   (3,235)   (1,390)   2,708 
Total other income/(loss) , net   (3,111)   (1,595)   2,652 
Loss before income tax   (3,797)   (7,741)   (351)
Income tax benefit   (176)   (2,116)   (264)
Loss, net of tax   (3,973)   (9,857)   (615)
Less: Net income (loss) attributed to non-controlling interests   431    (1,769)   (421)
Net Loss attributed to Emeren Group Ltd   (4,404)   (8,088)   (194)
Loss attributed to Emeren Group Ltd per ADS                
Basic  $(0.08)  $(0.15)  $(0.00)
Diluted  $(0.08)  $(0.15)  $(0.00)
Weighted average number of ADS used in computing income/(loss) per ADS*               
Basic   53,539,577    55,197,797    57,409,673 
Diluted   53,539,577    55,197,797    57,409,673 


*Each American depositary shares (ADS) represents 10 common shares






Appendix 2: Unaudited Consolidated Balance Sheet


  As of 
   Mar 31, 2024   Dec 31, 2023   Mar 31, 2023 
   (in thousands) 
Current assets:              
Cash and cash equivalents  $55,061   $70,174   $66,729 
Restricted cash   3    -    8 
Short-investments in U.S. Treasury Bills   -    -    9,992 
Accounts receivable trade, net   26,709    27,089    20,048 
Accounts receivable unbilled   49,406    59,526    51,903 
Advances to suppliers   4,850    4,283    625 
Value added tax receivable   9,079    7,361    7,142 
Prepaid expenses and other current assets, net   15,839    16,609    17,535 
Project assets current   46,509    39,914    36,711 
Deferred Cost   3,111    1,872    - 
Total current assets   210,567    226,828    210,693 
Property, plant and equipment, net   170,018    163,076    172,682 
Project assets non-current   40,225    37,014    31,723 
Goodwill   -    -    1,023 
Operating lease right-of-use assets   20,037    20,037    22,350 
Finance lease right-of-use assets   4,647    14,127    21,504 
Other non-current assets   17,371    16,927    21,751 
Total assets  $462,865   $478,009   $481,726 
Current liabilities:               
Short-term borrowings   945    1,069    1,487 
Accounts payable   15,664    13,041    5,911 
Advances from customers   5,243    5,375    2,885 
Amounts due to related parties   5,830    4,967    2,171 
Other current liabilities   18,837    22,054    20,120 
Income tax payable   2,160    2,168    914 
Salaries payable   670    718    550 
Deferred revenue   2,997    3,177    - 
Operating lease liabilities current   903    903    1,227 
Failed sale-lease back and finance lease liabilities current   4,505    4,916    8,401 
Total current liabilities   57,754    58,388    43,666 
Long-term borrowings   23,028    23,001    22,024 
Deferred tax liabilities, non-current   3,499    3,532    3,559 
Operating lease liabilities non-current   18,247    18,247    20,500 
Failed sale-lease back and finance lease liabilities non-current   9,450    10,772    15,341 
Total liabilities  $111,978   $113,940   $105,090 
Shareholders' equity               
Common shares   806,714    806,696    806,283 
Additional paid-in capital   14,757    14,728    13,941 
Treasury stock   (48,116)   (41,938)   (33,200)
Accumulated deficit   (451,105)   (446,701)   (437,571)
Accumulated other comprehensive loss   (8,788)   (6,471)   (13,764)
Total equity attributed to Emeren Group Ltd   313,462    326,315    335,689 
Noncontrolling interest   37,425    37,754    40,947 
Total shareholders' equity   350,887    364,069    376,636 
Total liabilities and shareholders' equity  $462,865   $478,009   $481,726 







Appendix 3: Unaudited Consolidated Statement of Cash Flow


   Three Months Ended 
   Mar 31, 2024   Dec 31, 2023   Mar 31, 2023 
   (in thousands) 
Net cash provided by (used in) operating activities  $(3,283)  $2,922   $(23,728)
Net cash provided by (used in) investing activities   (2,598)   7,006    (1,866)
Net cash used in financing activities   (8,397)   (4,916)   (16,150)
Effect of exchange rate changes   (831)   5,981    1,193 
Net increase (decrease) in cash and cash equivalents and restricted cash   (15,110)   10,993    (40,551)
Cash and cash equivalents and restricted cash, beginning of the quarter   70,174    59,181    107,288 
Cash and cash equivalents and restricted cash, end of the quarter  $55,064   $70,174   $66,737 






Use of Non-GAAP Financial Measures


To supplement Emeren Group Ltd’s financial statements presented on a US GAAP basis, Emeren Group Ltd provides non-GAAP financial data as supplemental measures of its performance.


To provide investors with additional insight and allow for a more comprehensive understanding of the information used by management in its financial and decision-making surrounding pro-forma operations, we supplement our consolidated financial statements presented on a basis consistent with U.S. generally accepted accounting principles, or GAAP, with EBITDA, Adjusted EBITDA as non-GAAP financial measures of earnings.


● EBITDA represents net income before income tax expense (benefit), interest expense, depreciation and amortization.


● Adjusted EBITDA represents EBITDA plus discount of electricity subsidy in China, plus share-based compensation, plus impairment of long-lived assets, plus loss/(gain) on disposal of assets, plus foreign exchange loss/(gain).


Our management uses EBITDA, Adjusted EBITDA as financial measures to evaluate the profitability and efficiency of our business model. We use these non-GAAP financial measures to access the strength of the underlying operations of our business. These adjustments, and the non-GAAP financial measures that are derived from them, provide supplemental information to analyze our operations between periods and over time.


We find these measures especially useful when reviewing pro-forma results of operations, which include large non-cash impairment of long-lived assets and loss on disposal of assets. Investors should consider our non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP.






Appendix 4: Adjusted EBITDA


   Three Months Ended 
   Mar 31, 2024   Dec 31, 2023   Mar 31, 2023 
   (in thousands) 
Net Loss  $(3,973)  $(9,857)  $(615)
Income tax expenses   176    2,116    264 
Interest expenses, net   (124)   244    133 
Depreciation & Amortization   1,848    2,003    2,050 
EBITDA  $(2,073)  $(5,494)  $1,832 
Discount of electricity subsidy in China   133    603    (96)
Share based compensation   28    203    441 
Impairment of long-lived assets   -    616    - 
Interest income of discounted electricity subsidy in China   (161)   60    53 
Foreign exchange loss (gain)   3,235    1,390    (2,709)
Adjusted EBITDA  $1,162   $(2,622)  $(479)



May 23, 2024
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date May 23, 2024
Entity File Number 001-33911
Entity Registrant Name EMEREN GROUP LTD
Entity Central Index Key 0001417892
Entity Tax Identification Number 00-0000000
Entity Incorporation, State or Country Code D8
Entity Address, Address Line One 149 Water Street
Entity Address, Address Line Two Suite 302
Entity Address, City or Town Norwalk
Entity Address, State or Province CT
Entity Address, Postal Zip Code 06854
City Area Code +1 925
Local Phone Number 425-7335
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security American Depositary Shares, each representing Common stock, 10 shares, no par value per share
Trading Symbol SOL
Security Exchange Name NYSE
Entity Emerging Growth Company false

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