Wafer Manufacturer Renesola Reports Preliminary Results to December 31, 2006

April 30, 2007
London, United Kingdom: Wafer Manufacturer Renesola Reports Preliminary Results to December 31, 2006
Chinese wafer manufacturer, ReneSola has reported its consolidated preliminary results for the year ended 31 December 2006, as well as provide a trading update incorporating output guidance for the first and second quarters of 2007.
In only the second year of operations, the Company generated revenue of US$87.6 million, profit before tax of US$22.8 million and profit after tax of $25.5 million. The results exceed forecasts made at the time of the IPO in August. On 16 February 2007, the Company indicated that the consolidated profit before and after tax for 2006 would be in the range of US$22-23 million. Reported profit before tax is $22.8 million.
During 2006, ReneSola's annualized production capacity grew from 14 MW to 80 MW.
Li Xian Shou, CEO of ReneSola, commented "2006 has been an outstanding year for ReneSola. We successfully implemented the expansion plan set out for the remainder of 2006 at the time of the IPO in August and have substantially increased our plans for 2007, which we are on track to deliver. Demand for our products remains extremely strong and our procurement program is delivering the necessary feedstock. We believe that ReneSola is making a valuable contribution in addressing the wafer shortage in the market and is well placed to grow its position as a major player in the global solar sector, which is continuing to benefit from political support around the world."
On 30 November 2006, the Company announced an increase in its target for 2007 year-end capacity from 180 MW to 265 MW. Construction of a new 24,000 m² facility to house the multicrystalline capacity is also expected to be completed during May 2007, ready for the installation of the two multicrystalline furnaces, which will be in trial production during June. A further 18 multicrystalline furnaces are planned to be installed before the end of the third quarter.
Demand for solar wafers has continued to grow. ReneSola has signed sales contracts for approximately 91 MW of monocrystalline wafers for 2007 delivery, representing approximately 83% of planned 2007 monocrystalline wafer output.
The silicon feedstock procurement programme for 2007 is well advanced with approximately 410 tonnes currently in stock, 800 tonnes to be delivered in 2007 under procurement contracts, approximately 200 tonnes to be supplied by customers under tolling arrangements and ongoing monthly purchases of between 60 and 90 tonnes.
Total production output is anticipated to be approximately 150 MW in 2007, more than three times the output in 2006. Production in the first quarter of 2007 was approximately 15 MW and is expected to rise to approximately 25 MW in the second quarter as production from the new monocrystalline furnaces comes on stream.
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