ReneSola Ltd Q3 2021 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Marisa Liliam Hernandez - Sidoti & Company, LLC - Analyst : Can you hear me?

Question: Marisa Liliam Hernandez - Sidoti & Company, LLC - Analyst : Okay, great. I apologize, I don't have a great connection today. So first of all, thank you for your opening comments and the disclosures that you make that I as an analysts find very useful. And thank you also for the clarifications on your ownership structure. I apologize if these questions have been asked already. So number one, on the third quarter specifically, I got that you got a couple of projects delayed, 60 to 70 megawatts, but how many megawatts did you sell in the third quarter? And what was the mix of NTP and COD, please?

Question: Marisa Liliam Hernandez - Sidoti & Company, LLC - Analyst : So total of 12 megawatts in the quarter?

Question: Marisa Liliam Hernandez - Sidoti & Company, LLC - Analyst : Okay. And do you have a range of what you expect for the full 2021 in terms of megawatts? And I understand that there's a big mix component in there.

Question: Marisa Liliam Hernandez - Sidoti & Company, LLC - Analyst : Yes, yes, for full 2021, whichever you're referring?

Question: Marisa Liliam Hernandez - Sidoti & Company, LLC - Analyst : So I understand, thank you, Yumin, for that. Now in terms of mix, can you make any comments? Are all of those targets you're working on of NTP, modality are all of them COD? Or is there a mix?

Question: Marisa Liliam Hernandez - Sidoti & Company, LLC - Analyst : Got it. Okay. Thank you for that. And then in terms of the -- I thought I heard something about costs affecting your margins in the third quarter. At the same time, they were at the high end of guidance. As I said, sorry, I don't have a great connection today. Is there anything other than project delay rather deferred sales, that pushed out of sales in the third quarter leading to your results? Did you experience any unexpected cost increase?

Question: Marisa Liliam Hernandez - Sidoti & Company, LLC - Analyst : Got it. Thank you for that. So moving on to pricing...

Question: Marisa Liliam Hernandez - Sidoti & Company, LLC - Analyst : Understood. Thank you for that, Yumin. The next question is related to pricing trends. I think it was mentioned earlier how you're seeing higher prices from buyers, which I'm very glad to hear about. You also mentioned that you have COD projects to sell later on. So my question is around, given all the cost inflation we've seen this year on the materials side, and now we are starting to see better PPA prices for your COD project, when do you think the margin can catch up? Is it going to be first half of '22? Is pricing good enough to offset the cost inflation that we've seen or you need for cost to go down or prices to go up further? Any flavor you can give us about that will be great.

Question: Marisa Liliam Hernandez - Sidoti & Company, LLC - Analyst : Thank you for that, Yumin. I also wanted to ask about what you've seen about project delays because of the cost inflation this year on the COD-type of projects and the whole industry. Is that something that you would expect to start easing in the next couple of quarters? Or is it hard to tell?

Question: Marisa Liliam Hernandez - Sidoti & Company, LLC - Analyst : Got it. So you guys spoke about a wide range, perhaps 200, up to 300 megawatts, if I heard correctly, for next year sales. What is the assumption of mix behind that, NTP versus COD? Just reflecting on the fact that you said multiple times that if you do NTP, you should do more and vice versa.

Question: Marisa Liliam Hernandez - Sidoti & Company, LLC - Analyst : And if I can squeeze in a last one on the ownership structure. Thank you for reminding us of your BVI jurisdiction. I think at some point, you were

Question: Marisa Liliam Hernandez - Sidoti & Company, LLC - Analyst : So that depends on the jurisdiction of the shareholders, yes?