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Jun 30, 2024
Emeren Group Q2 2024 Earnings Report
Achieved solid progress with disciplined growth and strong operating discipline.
Key Takeaways
Emeren Group reported $30.1 million in revenue, a gross profit of $9.4 million, and a net income of $0.4 million in Q2 2024. Despite a year-over-year revenue decline of 11% due to reduced RTB sales, the company achieved a rebound from a net loss in Q1 2024. The company reaffirmed full year revenue guidance of $150 to $160 million.
Generated $30.1 million in revenue, underpinned by a gross profit of $9.4 million and a gross margin of 31.2%.
Operating profit was $3.0 million and net income was $0.4 million, reflecting a disciplined approach to growth.
Signed over 2 GW of projects with 8 DSA partners in Europe, with contracted revenue of over $60 million expected over the next 2-3 years.
IPP assets exhibited strong growth and profitability, contributing approximately 29% of total revenue for the quarter.
Emeren Group
Emeren Group
Emeren Group Revenue by Geographic Location
Revenue by Geographic Location
China Revenue
CapyFin.comUnited States Revenue
CapyFin.com Forward Guidance
The company anticipates Q3 revenue between $25 to $28 million, with gross margin between 35% and 38%. Full year 2024 revenue is expected to range from $150 to $160 million, with a gross margin of approximately 30%. Net income in 2024 is expected to be around $22 million, with earnings per ADS of approximately 43 cents. IPP revenue is expected to be between $24 million and $26 million, with a gross margin of approximately 50%. DSA revenue is expected to be around $20 million in the second half of 2024.
Positive Outlook
- Advancing early-stage projects.
- Securing additional DSA partnerships in Europe and the U.S.
- Optimizing strategies to maximize the value of our development pipeline.
- Q3 revenue will fall within the range of $25 to $28 million, with gross margin between 35% and 38%.
- Operating profit is expected to grow in line with revenue, with a continued focus on cost management and efficiency.
Challenges Ahead
- Full-year net income will be affected by the earlier write-offs and foreign exchange losses.
- Revenue declined 11% year-over-year, primarily due to reduced RTB sales in Europe.
- Net income was reduced by an approximately $2.0 million write-off related to canceled projects.
- Net income was reduced by an unrealized foreign exchange loss of $0.8 million.
- Operating expenses were higher than the $5.5 million in Q1 2024, primarily due to an approximately $2.0 million write-off related to canceled projects.
Revenue & Expenses
Visualization of income flow from segment revenue to net income