Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | ReneSola Ltd |
Entity Central Index Key | 1,417,892 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 381,027,002 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 13,429,301 | $ 3,964,896 |
Accounts receivable, net of allowances for doubtful accounts of nil as of December 31, 2016 and 2017 | 23,312,086 | 85,948 |
Advances to suppliers-current, net | 379,792 | 4,220,864 |
Value added tax recoverable | 15,228,594 | 4,893,087 |
Income tax recoverable | 0 | 60,202 |
Prepaid expenses and other current assets | 10,542,822 | 1,893,590 |
Project assets current | 76,556,400 | 48,177,416 |
Deferred project costs current | 17,957,041 | 0 |
Contract costs | 12,668,709 | 0 |
Total current assets | 170,074,745 | 507,494,021 |
Assets of discontinued operations current | 0 | 444,198,018 |
Property, plant and equipment, net | 154,659,077 | 20,158,589 |
Deferred tax assets-non-current, net | 59,298 | 147,546 |
Advances for purchases of property, plant and equipment, net | 0 | 416,201 |
Project assets non-current | 7,480,574 | 6,709,991 |
Deferred project costs non-current | 0 | 16,374,899 |
Other non-current assets | 3,425,098 | 3,250,754 |
Assets of discontinued operations non-current | 0 | 533,853,687 |
Total assets | 335,698,792 | 1,088,405,688 |
Current liabilities: | ||
Short-term borrowings | 6,605,894 | 0 |
Accounts payable | 25,787,686 | 0 |
Advances from customers-current | 236,607 | 504,653 |
Amounts due to related parties | 60,370,065 | 0 |
Other current liabilities | 30,514,235 | 8,349,955 |
Income tax payable | 330,132 | 93,473 |
Salary payable | 560,416 | 0 |
Deferred project revenue current | 20,791,918 | 0 |
Liabilities of discontinued operations current | 0 | 895,484,040 |
Total current liabilities | 145,196,953 | 904,432,121 |
Long-term borrowings | 32,513,900 | 28,835,700 |
Deferred project revenue non-current | 0 | 32,242,995 |
Failed sale-lease back and capital lease liabilities | 67,505,469 | 0 |
Liabilities of discontinued operations non-current | 0 | 56,749,092 |
Total liabilities | 245,216,322 | 1,022,259,908 |
Commitments and contingencies (see Note 19) | ||
Shareholders’ equity | ||
Common shares (500,000,000 shares; no par value shares authorized at December 31, 2016 and 2017; 202,478,702 shares issued and 200,538,902 shares outstanding at December 31, 2016; 381,027,002 shares issued and 380,678,902 shares outstanding at December 31, 2017) | 519,225,850 | 477,171,487 |
Treasury stock (1,451,700 shares and nil on December 31, 2016 and 2017 respectively) | 0 | (513,137) |
Additional paid-in capital | 9,012,448 | 8,229,330 |
Accumulated deficit | (435,517,610) | (469,975,148) |
Accumulated other comprehensive (loss)/income | (2,238,218) | 51,233,248 |
Total equity | 90,482,470 | 66,145,780 |
Total liabilities and shareholders’ equity | $ 335,698,792 | $ 1,088,405,688 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts receivable, allowances for doubtful accounts (in dollars) | $ 0 | $ 0 |
Common shares, par value (in dollars per share) | $ 0 | $ 0 |
Common shares, shares authorized | 500,000,000 | 500,000,000 |
Common shares, shares issued | 381,027,002 | 202,478,702 |
Common shares, shares outstanding | 380,678,902 | 200,538,902 |
Treasury Stock, Shares | 0 | 1,451,700 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Revenue : | |||
Solar power project development | $ 64,837,042 | $ 77,372,737 | $ 110,737,934 |
Electricity revenue generation | 12,247,320 | 3,131,997 | 5,551,742 |
EPC services | 25,853,288 | 0 | 0 |
Other | 36,349 | 0 | 41,260 |
Total net revenue | 102,973,999 | 80,504,734 | 116,330,936 |
Cost of revenues: | |||
Cost of revenue | (88,842,244) | (73,271,853) | (93,295,780) |
Gross profit | 14,131,755 | 7,232,881 | 23,035,156 |
Operating (expenses)/income: | |||
Sales and marketing | (1,710,024) | (549,299) | (233,630) |
General and administrative | (6,179,274) | (6,828,817) | (7,393,843) |
Other operating income | 313,153 | 2,493,898 | 910,743 |
Total operating expenses | (7,576,145) | (4,884,218) | (6,716,730) |
Income from operations | 6,555,610 | 2,348,663 | 16,318,426 |
Non-operating income/(expenses): | |||
Interest income | 51,403 | 3,552 | 38,850 |
Interest expense | (3,936,302) | (1,842,227) | (1,999,454) |
Foreign exchange (losses)/gains | 894,704 | (1,072,836) | (1,201,578) |
Losses on derivatives, net | 0 | (134) | (7,971,934) |
Gains on repurchase of convertible notes | 0 | 212,056 | 13,693,269 |
Fair value change of warrant liability | 0 | 577,500 | 1,312,500 |
Other loss | (43,516) | 0 | 0 |
Total non-operating income/(expenses) | (3,033,711) | (2,122,089) | 3,871,653 |
Income before income tax | 3,521,899 | 226,574 | 20,190,079 |
Income tax (expense)/benefit | (322,068) | (132,092) | 23,191 |
Income from continuing operations, net of tax | 3,199,831 | 94,482 | 20,213,270 |
Discontinued operations | |||
Gain on disposal of discontinued operations before income taxes | 106,292,213 | 0 | 0 |
Loss from operations of discontinued operations before income taxes | (79,782,830) | (32,631,226) | (24,591,585) |
Income tax benefit/(expense) | 4,748,324 | (2,161,507) | (696,807) |
Income (loss) from discontinued operations, net of tax | 31,257,707 | (34,792,733) | (25,288,392) |
Net income (loss) | 34,457,538 | (34,698,251) | (5,075,122) |
Net income (loss) attributed to ReneSola Ltd | $ 34,457,538 | $ (34,698,251) | $ (5,075,122) |
Income per share from continuing operations | |||
Basic | $ 0.01 | $ 0 | $ 0.10 |
Diluted | 0.01 | 0 | 0.10 |
Income (loss) per share from discontinued operations | |||
Basic | 0.13 | (0.17) | (0.12) |
Diluted | $ 0.13 | $ (0.17) | $ (0.12) |
Weighted average number of shares used in computing income (loss) per share | |||
Basic (in shares) | 246,899,286 | 202,229,767 | 204,085,041 |
Diluted (in shares) | 246,905,289 | 202,403,904 | 204,222,541 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income/(loss) | $ 34,457,538 | $ (34,698,251) | $ (5,075,122) |
Other comprehensive income/(loss), net of tax of nil: | |||
Foreign currency translation adjustment | 11,513,216 | (10,343,509) | (19,503,275) |
Release of translation difference due to disposal of discontinued operation | (64,984,682) | 0 | 0 |
Other comprehensive loss | (53,471,466) | (10,343,509) | (19,503,275) |
Comprehensive loss | (19,013,928) | (45,041,760) | (24,578,397) |
Comprehensive loss attributable to ReneSola Ltd | $ (19,013,928) | $ (45,041,760) | $ (24,578,397) |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other comprehensive income, tax |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) | Total | Common shares [Member] | Treasury stock [Member] | Additional Paid-in Capital [Member] | Retained earnings (accumulated deficit) [Member] | Accumulated other comprehensive income [Member] | Equity (Deficit) attributable to ReneSola Ltd [Member] |
Balance at Dec. 31, 2014 | $ 135,156,319 | $ 476,765,888 | $ 0 | $ 7,512,174 | $ (430,201,775) | $ 81,080,032 | $ 135,156,319 |
Balance (in shares) at Dec. 31, 2014 | 204,846,064 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income/(loss) | (5,075,122) | $ 0 | 0 | 0 | (5,075,122) | 0 | (5,075,122) |
Release of translation difference due to disposal of discontinued operation | 0 | ||||||
Other comprehensive loss, net of tax | (19,503,275) | 0 | 0 | 0 | 0 | (19,503,275) | (19,503,275) |
Share-based compensation | 1,527,494 | 0 | 0 | 1,527,494 | 0 | 0 | 1,527,494 |
Share exercised by employee | 640,680 | $ 2,010,998 | 0 | (1,370,318) | 0 | 0 | 640,680 |
Share exercised by employee (in shares) | 100,000 | ||||||
Repurchase of common shares | (812,184) | $ 0 | $ (812,184) | 0 | 0 | 0 | (812,184) |
Repurchase of common shares (in shares) | 0 | 1,614,776 | |||||
Cancellation of shares | 0 | $ (812,184) | $ 812,184 | 0 | 0 | 0 | 0 |
Cancellation of shares (in shares) | (1,614,776) | (1,614,776) | |||||
Balance at Dec. 31, 2015 | 111,933,912 | $ 477,964,702 | $ 0 | 7,669,350 | (435,276,897) | 61,576,757 | 111,933,912 |
Balance (in shares) at Dec. 31, 2015 | 203,331,288 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income/(loss) | (34,698,251) | $ 0 | 0 | 0 | (34,698,251) | 0 | (34,698,251) |
Release of translation difference due to disposal of discontinued operation | 0 | ||||||
Other comprehensive loss, net of tax | (10,343,509) | 0 | 0 | 0 | 0 | (10,343,509) | (10,343,509) |
Share-based compensation | 746,980 | 0 | 0 | 746,980 | 0 | 0 | 746,980 |
Share exercised by employee | 0 | $ 187,000 | 0 | (187,000) | 0 | 0 | 0 |
Share exercised by employee (in shares) | 500,000 | ||||||
Repurchase of common shares | (1,493,352) | $ 0 | $ (1,493,352) | 0 | 0 | 0 | (1,493,352) |
Repurchase of common shares (in shares) | 0 | 2,804,286 | |||||
Cancellation of shares | 0 | $ (980,215) | $ 980,215 | 0 | 0 | 0 | 0 |
Cancellation of shares (in shares) | (1,352,586) | (1,352,586) | |||||
Balance at Dec. 31, 2016 | 66,145,780 | $ 477,171,487 | $ (513,137) | 8,229,330 | (469,975,148) | 51,233,248 | 66,145,780 |
Balance (in shares) at Dec. 31, 2016 | 202,478,702 | 1,451,700 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income/(loss) | 34,457,538 | $ 0 | $ 0 | 0 | 34,457,538 | 0 | 34,457,538 |
Release of translation difference due to disposal of discontinued operation | (64,984,682) | 0 | 0 | 0 | 0 | (64,984,682) | (64,984,682) |
Other comprehensive loss, net of tax | (53,471,466) | 0 | 0 | 0 | 0 | 11,513,216 | 11,513,216 |
Issuance of ordinary shares in conjunction with disposal of discontinued operations | $ 42,480,000 | $ 42,480,000 | $ 0 | 0 | 0 | 0 | 42,480,000 |
Issuance of ordinary shares in conjunction with disposal of discontinued operations (in shares) | 180,000,000 | 180,000,000 | 0 | ||||
Share-based compensation | $ 870,618 | $ 0 | $ 0 | 870,618 | 0 | 0 | 870,618 |
Share exercised by employee | 0 | $ 87,500 | 0 | (87,500) | 0 | 0 | 0 |
Share exercised by employee (in shares) | 0 | ||||||
Cancellation of shares | $ 0 | $ (513,137) | $ 513,137 | 0 | 0 | 0 | 0 |
Cancellation of shares (in shares) | (1,451,700) | (1,451,700) | (1,451,700) | ||||
Balance at Dec. 31, 2017 | $ 90,482,470 | $ 519,225,850 | $ 0 | $ 9,012,448 | $ (435,517,610) | $ (2,238,218) | $ 90,482,470 |
Balance (in shares) at Dec. 31, 2017 | 381,027,002 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities: | |||
Net income/(loss) | $ 34,457,538 | $ (34,698,251) | $ (5,075,122) |
Less: (Income)/loss from discontinued operations, net of tax | (31,257,707) | 34,792,733 | 25,288,392 |
Net income from continuing operations | 3,199,831 | 94,482 | 20,213,270 |
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities | |||
Depreciation | 4,475,823 | 2,400,522 | 3,548,898 |
Amortization of deferred convertible notes issuance costs and premium | 0 | 32,935 | 764,527 |
Losses on derivatives | 0 | 134 | 7,971,934 |
Share-based compensation | 870,618 | 746,980 | 1,527,494 |
Deferred tax provision for continuing operations | 88,048 | (151,737) | (57,912) |
Fair value change of warrant liability | 0 | (577,500) | (1,312,500) |
Gains on repurchase of convertible notes | 0 | (212,056) | (13,693,269) |
Gains on disposal of solar project | 0 | (2,526,572) | 0 |
Changes in working capital, excluding impact of dispositions: | |||
Accounts receivable | (22,371,300) | (301,339) | (716,614) |
Project assets and deferred project costs | (30,731,709) | (35,788,345) | (4,993,507) |
Contract costs | (12,192,302) | 0 | 0 |
Advances to suppliers | 3,864,146 | 7,383,527 | (11,609,809) |
Amounts due to related parties | 14,353,175 | 0 | 0 |
Value added tax recoverable | (9,052,607) | 3,244,727 | 1,789,846 |
Prepaid expenses and other current assets | (8,625,177) | (313,134) | 1,939,349 |
Accounts payable | 24,452,548 | (2,432,060) | 2,562,150 |
Advances from customers | (282,019) | 83,406 | (48,762) |
Income tax payables | 284,182 | 0 | 0 |
Salary payable | 560,416 | 0 | 0 |
Other current liabilities | (1,802,578) | 7,559,456 | (1,226,744) |
Deferred project revenue | (13,878,685) | 0 | 32,376,386 |
Other non-current assets | 103,535 | (3,250,650) | 0 |
Net cash provided by (used in) operating activities | (46,684,055) | (24,007,224) | 39,034,737 |
Net cash provided by (used in) operating activities from discontinued operation | 65,114,169 | 51,541,103 | (36,825,130) |
Net cash provided by operating activities | 18,430,114 | 27,533,879 | 2,209,607 |
Investing activities: | |||
Purchase of property, plant and equipment | (80,314,313) | 0 | 0 |
Proceeds from disposal of power stations | 0 | 3,190,678 | 0 |
Lending to related parties | (1,624,261) | 0 | 0 |
Repayment of lending by related parties | 2,000,000 | 0 | 0 |
Changes in restricted cash | 0 | 0 | 1,887,485 |
Net cash paid on settlement of derivatives | 0 | (134) | (6,293,929) |
Net cash provided by (used in) investing activities | (79,938,574) | 3,190,544 | (4,406,444) |
Net cash provided by (used in) investing activities from discontinued operations (including cash from discontinued operation of $13,774,473 disposed of) | (76,415,127) | 38,969,387 | (35,621,029) |
Net cash provided by (used in) investing activities | (156,353,701) | 42,159,931 | (40,027,473) |
Financing activities: | |||
Proceed from bank borrowings | 6,101,351 | 0 | 0 |
Repayment of bank borrowings | 0 | (1,128,727) | (1,239,145) |
Proceeds from exercise of stock options | 0 | 0 | 640,680 |
Repurchase of convertible notes | 0 | (25,931,219) | (54,376,600) |
Cash paid for common shares repurchase | 0 | (1,493,350) | (812,183) |
Borrowings from related parties | 11,343,739 | 0 | 0 |
Repayment of borrowings from related parties | (2,041,201) | 0 | 0 |
Repayment of capital lease obligation | (976,966) | 0 | 0 |
Proceeds from failed sale-lease back agreements | 38,722,123 | 0 | 0 |
Repayment of failed sale-lease back financing | (251,213) | 0 | 0 |
Net cash provided by (used in) financing activities | 52,897,833 | (28,553,296) | (55,787,248) |
Net cash provided by (used in) financing activities from discontinued operation | 49,505,882 | (33,820,418) | 44,629,497 |
Net cash provided by (used in) financing activities | 102,403,715 | (62,373,714) | (11,157,751) |
Effect of exchange rate changes | 11,612,791 | (8,028,939) | (12,826,762) |
Net increase (decrease) in cash and cash equivalents | (23,907,081) | (708,843) | (61,802,379) |
Cash and cash equivalents, beginning of year | 3,964,896 | 38,045,225 | 99,847,604 |
Cash and cash equivalents, end of year | 13,429,301 | 3,964,896 | 38,045,225 |
Supplemental disclosure of cash flow information | |||
Interest paid, net of capitalized interest | 3,936,302 | 2,973,128 | 2,919,990 |
Income tax paid | 42,877 | 79,976 | 0 |
Non-cash investing and financing transactions | |||
Payables for purchase of property, plant and equipment | (25,562,367) | (2,051,958) | 0 |
Payable for capital lease | (28,783,346) | 0 | 0 |
Issuance of ordinary shares for the disposal of discontinued business | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CAS9
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Discontinued Operation, Amount of Continuing Cash Flows after Disposal | $ 13,774,473 | ||
Disposal Group, Including Discontinued Operation, Cash | $ 33,371,486 | $ 23,463,634 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2017 | |
ORGANIZATION AND NATURE OF OPERATIONS [Abstract] | |
ORGANIZATION AND NATURE OF OPERATIONS | 1. ORGANIZATION AND NATURE OF OPERATIONS ReneSola Ltd was incorporated in the British Virgin Island on March 17, 2006. On January 29, 2008, the Company became listed on the New York Stock Exchange (NYSE) in the United States. ReneSola Ltd and its subsidiaries (collectively the “Company”) were principally engaged in the manufacture and sale of solar power products including virgin polysilicon, monocrystalline and multi crystalline solar wafers and photovoltaic (PV) cells and modules. From 2012, the Company began entering into arrangements to develop commercial solar power projects, or project assets, which consists primarily of solar power project development, Engineering, Procurement and Construction (“EPC”) services. On September 29, 2017, the Company announced that it completed restructuring to dispose of its manufacturing business (including polysilicon, solar wafer, solar cell and solar module manufacturing) and LED distribution business (collectively the “discontinued business”) to a related party to help the Company transform its business model to focus on its solar power project business (Note 3). |
SUMMARY OF PRINCIPAL ACCOUNTING
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES The consolidated financial statements have been prepared and presented in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Company’s ability to generate cash flows from operations, and the Company’s ability to arrange adequate financing arrangements, to support its working capital requirements. The Company has performed a review of its cash flow forecast for at least the twelve months following the issuance date of these financial statements. The Company expects the solar power project business to generate positive cash inflow in the forecasted period. In addition, the Company plans to continue its financing arrangements, such as renew and enter into new bank borrowings and financing lease and other arrangements, and equity contribution to meet the working capital and expenditures requirements. Based on the above factors, management believes that adequate sources of liquidity exist to fund the Company’s working capital and capital expenditures requirements, and to meet its short term debt obligations, other liabilities and commitments as they become due for at least twelve months from the issuance date of these financial statements. Disposal of manufacturing business and LED distribution business On September 25, 2017 (the “Disposal Date”), the Company transferred all of the Company’s assets and liabilities related to its manufacturing business (including polysilicon, solar wafer, solar cell and solar module manufacturing) and LED distribution business to Mr. Xianshou Li, Chairman and Chief Executive Officer of the Company, through a transfer of all the share capital in ReneSola Singapore Pte. Ltd. (“ReneSola Singapore”), a wholly-owned subsidiary of ReneSola prior to the Disposal Date. The financial results of ReneSola Singapore, together with its subsidiaries, for the twelve months ended December 31, 2015 and 2016, and the 9 months ended September 30, 2017 have been classified as discontinued operations within the accompanying consolidated financial statements. As the disposal date was just prior to the end of the quarter, there was no material transactions during the 5 days between September 25 and September 30, 2017; therefore, the disposal transaction was measured as of September 30, 2017. Unless otherwise indicated, amounts provided in these Notes pertain to continuing operations only (see Note 3 for information on discontinued operations). The consolidated financial statements include the financial statements of ReneSola Ltd and its subsidiaries. All inter-company transactions, balances and unrealized profits and losses have been eliminated on consolidation. A component of a reporting entity or a group of components of a reporting entity that are disposed or meet the criteria to be classified as held for sale, such as the management, having the authority to approve the action, commits to a plan to sell the disposal group, should be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. Discontinued operations are reported when a component of an entity comprising operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity is classified as held for disposal or has been disposed of, if the component either (1) represents a strategic shift or (2) have a major impact on an entity’s financial results and operations. Examples include a disposal of a major geographical location, line of business, or other significant part of the entity, or disposal of a major equity method investment. In the consolidated statement of operations, result from discontinued operations is reported separately from the income and expenses from continuing operations and prior periods are presented on a comparative basis. In order to present the financial effects of the continuing operations and discontinued operations, revenues and expenses arising from intra-group transactions are eliminated except for those revenues and expenses that are considered to continue after the disposal of the discontinued operations. The Company estimates fair value of financial assets and liabilities as the price that would be received from the sales of an asset or paid to transfer a liability (an exit price) on the measurement date in an orderly transaction between market participants. When available, the Company measures the fair value of financial instruments based on quoted market prices in active markets, valuation techniques that use observable market-based inputs or unobservable inputs that are corroborated by market data. When observable market prices are not readily available, the Company generally estimates the fair value using valuation techniques that rely on alternate market data or inputs that are generally less readily observable from objective sources and are estimated based on pertinent information available at the time of the applicable reporting periods. See Note 8, “Fair Value Measurements”, for further details. The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the reporting periods presented. Actual results could materially differ from these estimates. Significant accounting estimates are susceptible to changes with the acquisition of the information, which include revenue recognition for sales of solar power projects, inputs used to recognize revenue over time, EPC warranties, Cash and cash equivalents represent cash on hand and held with banks, including demand deposits, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less when purchased. In 2012, the Company began entering into arrangements to develop commercial solar power projects (“project assets”) for sale upon their completion. Project assets consist primarily of costs relating to solar power projects in various stages of development that are capitalized prior to entering into a definitive sales agreement for the solar power project. These costs include certain acquisition costs, land costs and costs for developing and constructing a solar power project. Development costs can include legal, consulting, permitting, and other similar costs. Construction costs can include execution of field construction, installation of solar equipment, and solar modules and related equipment. Interest costs incurred on debt during the construction phase are also capitalized within project assets. The Company does not depreciate the project assets, when they are considered held for sale. Any revenue generated from a solar power project connected to the grid would be considered incidental revenue and accounted for as a reduction of the capitalized project costs for development. In addition, the Company presents all expenditures related to the development and construction of project assets as a component of cash flows from operating activities. During the development phase, these project assets are accounted for in accordance with the recognition, initial measurement and subsequent measurement subtopics of ASC 970- 360, as they are considered in substance real estate. While the solar power projects are in the development phase, they are generally classified as non-current assets, unless it is anticipated that construction will be completed and sale will occur within one year. The Company capitalizes the costs related to solar power projects in various stages of development prior to entering into a definitive sales agreement for the solar power project and classifies these costs as project assets on the consolidated balance sheets when the criteria in ASC 360-10-45-9 are met. If not met, the Company reclassifies them to property, plant and equipment, unless the delay in the period required to complete the sale is caused by events or circumstances beyond the Company’s control. Deferred project costs represents costs that are capitalized as deferred project assets for arrangements that are accounted for as real estate transactions after the Company has entered into a definitive sales arrangement, but before the sale is completed or before all criteria to recognize the sale as revenue is met. The Company classifies deferred project costs as noncurrent if satisfaction of all revenue recognition criteria are not expected within the next 12 months. As of December 31, 2015, the Company entered into a sale transaction for one project asset, which includes contractual provisions which may require the Company to repurchase the project asset under certain circumstances, and the revenue recognition criteria is not met until the issuance of the final acceptance certificate (“FAC”) by the customer. The repurchase provisions expired on June 30, 2017 and the FAC was received in March 2018. Deferred project costs as of December 31, 2016 and 2017 were derived from this one project. Therefore, the Company has classified the project asset as non-current deferred project costs as of December 31, 2016 and current deferred project cost as of December 31, 2017. The Company reviews project assets and deferred project costs for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company considers a project commercially viable or recoverable if it is anticipated to be sold for a profit once it is either fully developed or fully constructed. The Company considers a partially developed or partially constructed project commercially viable or recoverable if the anticipated selling price is higher than the carrying value of the related project assets and the estimated costs to complete. The Company examines a number of factors to determine if the project will be recoverable, the most notable of which include whether there are any changes in environmental, ecological, permitting, market pricing or regulatory conditions that impact the project. Such changes could cause the costs of the project to increase or the selling price of the project to decrease. If a project is not considered recoverable, the Company impairs the respective project assets and adjusts the carrying value to the estimated recoverable amount, with the resulting impairment recorded within operations. The Company did not recognize any impairment losses on project assets for the years ended December 31, 2015, 2016 and 2017, respectively. (h) Contract costs The Company provides EPC services including engineering design, construction contracting and management, procurement of PV modules, balance-of-system components and other components. Contract costs generally include all direct costs, such as materials, direct labor, and subcontracts, and indirect costs identifiable with or allocable to the contracts. Contract costs also include the costs related to the design, engineering, and costs of all PV modules and materials needed for the projects for the cooperation arrangements with third party to jointly construct the power projects for sale. Contract costs are accumulated and are charged to operations as the related revenue from contracts is recognized. Refer to the note 2 (r) Solar power project development section c) and note 2 (r) EPC services for the corresponding revenue streams. (i) Advances to suppliers and advances for purchases of property, plant and equipment In order to secure a stable supply of construction materials, the Company makes advance payments to suppliers for raw material supplies and advances for purchases of long-lived assets which are offset against future deliveries. Advances to suppliers for purchases expected within twelve months as of each balance sheet date are recorded as advances to suppliers in current assets and those associated with purchases expected over longer periods of time are recorded in non-current advance to suppliers. As of December 31, 2016 and 2017, advances to suppliers in current assets were $ 4,220,864 379,792 416,201 Property, plant and equipment are stated at cost less accumulated depreciation and impairment. Depreciation is computed on a straight-line basis over the following estimated useful lives: 40 50 Plant and machinery 10 25 Motor vehicles 4 5 Office equipment 3 5 Power stations 25 Construction in progress represents mainly the construction of solar power projects the Company will own and operate for electricity generation. Costs incurred in the construction are capitalized and transferred to property, plant and equipment upon completion, at which time depreciation commences. Expenditures for repairs and maintenance are expensed as incurred. The gain or loss on disposal of property, plant and equipment, if any, is the difference between the net sales proceeds and the carrying amount of the disposed assets, and is recognized in the consolidated statement of operations upon disposal. Assets and asset disposal groups are classified as held-for-sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when management has committed to a plan of sale and the sale is highly probable, the assets are available for immediate sale in their present condition and they are expected to qualify for recognition as a completed sale within one year from the date of classification. Assets and liabilities classified as held for sale are measured at lower of their carrying amount and fair value less costs to sell. Long-lived assets to be sold shall be classified as held for sale considering the recognition criteria in ASC 360-10-45-9 in which all of the following criteria are met: l Management, having the authority to approve the action, commits to a plan to sell the asset. l The asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets. l An active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated. l The sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one year. l The asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value. l Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company capitalizes interest costs as part of the costs of constructing certain assets during the period of time required to get the assets ready for their intended use. The Company capitalizes interest to the extent that expenditures to construct an asset have occurred and interest costs have been incurred. The interest capitalized for project assets forms part of the cost of revenues when such project assets are sold and all revenue recognition criteria are met. The interest are capitalized for solar power projects that are classified as property, plant and equipment and built for the Company to own and operate for electricity generation before the projects are completed and put into operation. Interest capitalization ceases once a project is substantially complete or no longer undergoing construction activities to prepare it for its intended use. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable or that the useful life is shorter than originally estimated. The Company assesses recoverability of the long-lived assets by comparing the carrying amount of the assets to the estimated future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. The Company recognizes an impairment loss in the event the carrying amount exceeds the estimated future undiscounted cash flows attributable to such assets, measured as the difference between the carrying amount of the assets and the fair value of the impaired assets. The impairment losses of long-lived assets were nil for the years ended December 31, 2015, 2016 and 2017 respectively. (n) Leases Leases are classified as capital or operating leases. A lease that transfers to the lessee substantially all the benefits and risks incidental to ownership is classified as a capital lease. At inception, a capital lease is recorded at the present value of minimum lease payments or the fair value of the asset, whichever is less. Assets under capital leases are amortized on a basis consistent with that of similar fixed assets or the lease term, whichever is less. Operating lease costs are recognized on a straight-line basis over the lease term. From time to time, the Company’s subsidiaries are asked to prepay the lease costs for over one year. As of December 31, 2017, the prepaid rental fees of US$ 3,425,098 For a sale-leaseback transaction, when the transaction involves real estate or integral equipment, sale-leaseback accounting shall be used by a seller-lessee only if the transaction includes all of the following a) A normal leaseback; b) Payment terms and provisions that adequately demonstrate the buyer-lessor’s initial and continuing investment in the property; c) Payment terms and provisions that transfer all of the other risks and rewards of ownership as demonstrated by the absence of any other continuing involvement by the seller-lessee. Equipment is determined to be integral when the cost to remove the equipment from its existing location, ship and reinstall at a new site, including any diminution in fair value, exceeds 10% of the fair value of the equipment at the time of original installation. If a sale-leaseback of real estate qualifies for sale-leaseback accounting, an analysis is performed to determine if the Company can record a sale and remove the assets from the balance sheet and recognize the lease; and if so, to determine whether to record the lease as either an operating or capital lease. If a sale-leaseback transaction does not qualify for sale-leaseback accounting because of any form of continuing involvement by the seller-lessee other than a normal leaseback, it is accounted for as a financing, whichever is appropriate under ASC 360. Debt issuance costs are deferred and amortized using effective interest method through the earliest redemption date. The amortization, recorded in interest expense, was $ 764,527 32,935 Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but the amount cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. Legal costs incurred in connection with loss contingencies are expensed as incurred. Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net operating loss carry forwards and credits by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Before 2016, the component of the deferred tax assets and liabilities were individually classified as current and non-current based on the characteristics of the underlying assets and liabilities, or the expected timing of their use when they did not relate to a specific asset or liability. From 2016, the Company adopted ASU2015-17 prospectively, and as of December 31, 2016 and 2017, the components of the deferred tax assets and liabilities are all classified as non-current in a classified statement of financial position. Solar power project development a) Sale of project assets The Company recognizes revenue from the sale of project assets in accordance with ASC 360-20, Real Estate Sales. For these transactions, the Company has determined that the project assets, which represent the costs of constructing solar power projects, represent “integral” equipment and as such, the entire transaction is in substance the sale of real estate and subject to the revenue recognition guidance under ASC 360-20 Real Estate. Under the provisions of real estate accounting, the Company recognizes revenue under full accrual method when all of the following requirements are met: (a) the sales are consummated; (b) the buyer’s initial and continuing investments are adequate to demonstrate its commitment to pay; (c) the receivable is not subject to any future subordination; and (d) the Company has transferred the usual risk and rewards of ownership to the buyer. Specifically, the Company considers the following factors in determining whether the sales have been consummated: (a) the parties are bound by the terms of a contract; (b) all consideration has been exchanged; (c) permanent financing for which the seller is responsible has been arranged; and (d) all conditions precedent to closing have been performed, and the Company does not have any substantial continuing involvement with the project. For sales agreements that have energy generation performance guarantees covering a certain timeframe, if there is an underperformance event, the Company may incur liquidated damages as a percentage of the EPC contract price. The Revenue recognized is reduced by the maximum amount of the payable liquidated damage, which amount is deferred until the end of the guarantee period. For sales agreements that have conditional repurchase clauses if certain events occur, such as not achieving specified guaranteed performance level within a certain timeframe, the Company will defer and will not recognize revenue on such sales agreements until the conditional repurchase clauses are of no further force or effect and all other necessary revenue recognition criteria have been met. b) Sale of project asset rights The Company also sells the project rights to customers through the disposal of project companies holding the relevant permits. For these transactions, the project companies could either own the land or lease the land under the lease term that could cover the entire power plant’s life. For the transactions with the land owned, the Company accounts the entire transaction under the revenue recognition guidance of ASC 360-20 Real Estate. Under the provisions of real estate accounting, the Company recognizes revenue under full accrual method when all of the requirements mentioned in the sale of project assets above are met. For the transactions with the land leased, the Company recognizes revenue when the revenue is realized or realizable and earned in accordance with ASC 605-10-S99-1. In these transactions, the Company is also responsible for locating the electricity end subscribers for certain percentage of the entire contract consideration. A consideration reduction will occur if the located end subscribers don ’ c) Jointly arrangements of power projects for sale The Company also enters into cooperation arrangement to jointly construct power projects for sale. In the arrangement, the Company’s performance obligations generally including design, engineering, procurement of all PV modules, materials needed for the projects and locating end subscriptions, while the counterparty is the primary obligor for constructing the power projects under the joint cooperation agreement, holds the ownership of the land and power projects and sell the power projects. The Company and the counterparty each generally receive 50 EPC Services The Company provides engineering, procurement and construction (“EPC”) services under the EPC contracts to design and build the power plant on customer’s site per customer’s request. The Company generally recognize revenue for EPC services over time using a percentage-of completion method as the Company’s performance creates or enhances an energy generation asset controlled by the customer per ASC 605-35. In applying the percentage-of-completion method, the Company follows the cost-to-cost method and uses the actual costs incurred relative to the total estimated costs (including module costs) in order to determine the progress towards completion and calculate the corresponding amount of revenue and profit to recognize. Costs incurred include direct materials, solar modules, labor, subcontractor costs, and those indirect costs related to contract performance, such as indirect labor and supplies. When contracts specify that title to direct materials and solar modules transfers to the customer before installation has been performed, the Company will not recognize revenue or the associated costs until those materials are installed and have met all other revenue recognition requirements. The percentage-of-completion method of revenue recognition requires the Company to make estimates of net contract revenues and costs to complete our projects. In making such estimates, management judgments are required to evaluate significant assumptions including the amount of net contract revenues, the cost of materials and labor, subcontractor costs, the impact of potential variances in schedule completion, and the impact of any penalties, claims, change orders, or performance incentives. If estimated total costs on any contract are greater than the net contract revenues, the Company recognizes the entire estimated loss in the period the loss becomes known. The cumulative effect of the revisions to estimates related to net contract revenues and costs to complete contracts, including penalties, claims, change orders, performance incentives, anticipated losses, and others are recorded in the period in which the revisions to estimates are identified and the amounts can be reasonably estimated. The effect of the changes on future periods are recognized as if the revised estimates had been used since revenue was initially recognized under the contract. Such revisions could occur in any reporting period, and the effects may be material depending on the size of the contracts or the changes in estimates. For the years ended December 31, 2015, 2016 and 2017, no such revisions occur. The Company bills the customer based on progress billing terms in the contract. Accounts receivable from EPC services (unbilled) represents revenue that has been recognized in advance of billing the customer, which is common for long-term construction contracts. The Company typically recognizes revenue from contracts for the construction and sale of PV solar power systems over time using cost based input methods, which recognizes revenue and gross profit as work is performed based on the relationship between actual costs incurred compared to the total estimated costs of the contract. Accordingly, revenue could be recognized in advance of billing the customer, resulting in an amount recorded to “Accounts receivable from EPC services (unbilled)” as disclosed in Note 4. Once the Company has an unconditional right to consideration under a construction contract, the Company typically bills the customer accordingly and reclassifies the “Accounts receivable from EPC services (unbilled)” to “Accounts receivable from EPC services (billed).” Billing requirements vary by contract but are generally structured around the completion of certain construction milestones. Certain of the EPC contracts for PV solar power systems contain retainage provisions. Retainage represents contract costs for the portion of the contract price earned for work performed, but held for payment by the customer as a form of security until certain defined timeframe has been reached. The Company considers whether collectability of such retainage is reasonably assured in connection with the Company’s overall assessment of the collectability of amounts due or that will become due under the EPC contracts. Retainage included within “Accounts receivable from EPC services (unbilled)” is expected to be billed and collected within the next 12 months. After the Company has satisfied the EPC contract requirements and have an unconditional right to consideration, the retainage is billed and reclassified to “Accounts receivable from EPC services (billed).” Refer to Note 4 for detail breakdown of the “Accounts receivable from EPC services (unbilled)” and “Accounts receivable from EPC services (billed)” amounts. For EPC services, the Company provides limited warranty for certain years for the modules, materials and construction part of the power plants. Although the Company subcontracts the construction to third party developers and purchase the raw materials and modules from third party suppliers, the Company is the primary obligor for the limited warranties such as solar module product warranty for a period of five to ten years, warranties for defects in engineering design, installation, workmanship for a period of one to two years and records a liability “Accrued EPC warranty liabilities” which is grouped under “Other current liabilities” in the Consolidated Balance Sheet and disclosed in Note 11. On another hand, the Company has a legally enforceable right to recover these warranties from the subcontractor and suppliers as these parties have contracted with the Company to assume these warranty obligations, and that the Company will also record receivables for expected reimbursement in amounts that the Company believes are probable as “EPC Warranty reimbursement receivables” which is grouped under “Prepaid expenses and other current assets” in the Consolidated Balance Sheet and disclosed in Note 5. The EPC warranty expenses and expected recovery amounts related to warranties are recorded net in expense in the Consolidated Statement of Operations on the basis that the amounts provided by the subcontractor and suppliers are a reimbursement of the Company’s costs. As of December 31, 2016 and 2017, the liabilities and receivables are not material. The related expenses for the three years ended Dec 31, 2015, 2016 and 2017 are also not material. Electricity revenue generation The Company recognizes electricity generation revenue for company operated power plant when persuasive evidence of a power purchase arrangement with the power grid company exists, electricity has been generated and been transmitted to the grid and the electricity generation records are reconciled with the grid companies, the price of electricity is fixed or determinable and the collectability of the resulting receivable is reasonably assured. Note that the Company is entitled to the feed-in tariff(s) (FIT) that the government guaranteed and subsidized electricity sale price at which solar power projects can produce green energy. The Company recognizes the FIT as part of the electricity generation revenue when the entitlement to receipt of such FIT is fulfilled. Revenue from green certificates The Company receives green energy certificates based on electricity generated from the power plants in a subsidiary. The Company sells these certificates to buyers who can then meet the mandatory government quota per year for green energy produced. The Company believes that these green certificates are government incentive and the sale of green energy certificates does not fall into derivative and lease accounting scope. The Company recognizes revenue for the sale in accordance with ASC 605-10-S99-1 when persua |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure | On September 25, 2017, the Company completed a share repurchase and subscription agreement (the “SPA”) with Mr. Xianshou Li, the Company’s Chairman and Chief Executive Officer (the “Buyer”) for the sale of the Company’s manufacturing (including polysilicon, solar wafer, solar cell and solar module manufacturing) and LED distribution businesses. The transaction also transferred substantially all of the Group’s related indebtedness to Li. The transaction resulted in: 1) The Company was no longer be liable for the bank borrowings approximating RMB 3 ($ 461 2) The Buyer forgave 217.4 3) The Company issued 180 18 with a fair value of approximately $ 42.5 Assets and liabilities related to the discontinued businesses were reclassified as assets/liabilities held for sale as of December 31, 2016, while results of operations related to the discontinued businesses, including comparatives, were reported as loss from discontinued operations. Reconciliation of disposal gain: Item Amount in US$ million Waiver of the Company’s payable to the Buyer of the discontinued operations 217.4 Fair value of shares issued to the Buyer (42.5) Net assets of discontinued operations as of the disposal date (133.6) Release of currency translation difference due to discontinued operations 65.0 Disposal Gain 106.3 Results of the discontinued operations January 1 2015 2016 2017 Revenues $ 1,165,700,510 $ 849,331,555 $ 472,568,586 Cost of revenues (1,000,861,822) (747,068,354) (457,058,538) Gross Profit 164,838,688 102,263,201 15,510,048 Operating (expenses)/income: Selling and marketing (72,061,281) (46,914,631) (24,259,869) General and administrative (51,896,423) (44,629,891) (32,341,022) Research and development (43,905,312) (27,286,652) (14,715,027) Other income 16,009,232 3,771,645 8,776,633 Impairment loss of assets - (4,624,979) - Total operating expenses (151,853,784) (119,684,508) (62,539,285) Income/(Loss) from operations 12,984,904 (17,421,307) (47,029,237) Interest income 2,836,225 2,349,791 1,144,135 Interest expenses (41,418,331) (32,097,477) (25,518,288) Exchange (loss)/gain (935,402) 9,945,642 (7,095,061) Gain/(losses) on derivatives 1,941,019 4,592,125 (1,284,379) Loss from discontinued operations before income taxes (24,591,585) (32,631,226) (79,782,830) Income tax (expense)/benefit, net (696,807) (2,161,507) 4,748,324 Loss from discontinued operations, net of tax $ (25,288,392) $ (34,792,733) $ (75,034,506) Assets and liabilities of the discontinued operations December 31, 2016 Assets Cash and cash equivalents $ 33,371,486 Restricted cash 95,861,139 Accounts receivable, net of allowances for doubtful accounts 72,732,734 Notes receivable, net - third parties 43,858,319 Inventories 143,975,999 Advances to suppliers-current 10,722,586 Amounts due from related parties 13,065,625 Prepaid income tax 1,020,676 Prepayments and other current assets 19,315,500 Derivative assets 2,715,736 Assets held-for-sales 7,558,218 Total current assets 444,198,018 Property, plant and equipment, net 471,096,623 Prepaid land rent, net 31,850,188 Deferred tax assets, non-current 15,391,396 Restricted cash non current 429,706 Other long-lived assets 15,085,774 Total non-current assets 533,853,687 Total assets of the discontinued operations 978,051,705 Liabilities Short-term borrowings from third parties 595,433,960 Notes payable - third parties 223,302,995 Advances from third parties 21,493,334 Amounts due to related parties 1,257,367 Other current liabilities 53,774,987 Income tax payable 221,397 Total current liabilities 895,484,040 Warranty 35,058,973 Deferred gain 20,824,155 Other long-term liabilities 865,964 Total non-current liabilities 56,749,092 Total liabilities 952,233,132 Net assets $ 25,818,573 Note: The intercompany receivables of US$ 173.4 |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure | 4. ACCOUNTS RECEIVABLE, NET At December 31, 2016 2017 Accounts receivables from EPC services (billed) $ - $ 7,091,310 from EPC services (unbilled) - 1,835,203 from solar power project assets 8,919 7,124,003 from electricity revenue generation (1) 77,029 7,184,721 others - 76,849 Allowance for doubtful accounts - - Accounts receivable, net $ 85,948 $ 23,312,086 (1) Accounts receivables from electricity revenue generation includes the receivables from the sales of green certificates. ALLOWANCES FOR DOUBTFUL RECEIVABLES The Company establishes an allowance for doubtful accounts primarily based on factors surrounding the credit risk of specific customers. The Company did not make provision for doubtful debts during the years ended December 31, 2015, 2016 or 2017. As of December 31, 2016 and 2017, no individual customer has greater than 10% of the accounts receivable. |
PREPAID EXPENSE AND OTHER CURRE
PREPAID EXPENSE AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expense and Other Current Assets Disclosure | 5. PREPAID EXPENSE AND OTHER CURRENT ASSETS At December 31, 2016 2017 Refundable deposits (1) $ 1,821,545 $ 7,927,825 Prepaid rental fees (2) - 1,652,826 EPC Warranty reimbursement receivables - 132,007 Others 72,045 830,164 Total prepaid expenses and other current assets $ 1,893,590 $ 10,542,822 (1) As of December 31 2017, refundable deposits mainly represented refundable deposits for the bidding of the project asset construction rights. (2) As of December 31, 2017, prepaid rental fees mainly represented rooftop rental payments for solar systems for one year. |
PROJECT ASSETS AND DEFERRED PRO
PROJECT ASSETS AND DEFERRED PROJECT COSTS | 12 Months Ended |
Dec. 31, 2017 | |
PROJECT ASSETS, CONTRACT COSTS AND DEFERRED PROJECT COSTS [Abstract] | |
PROJECT ASSETS, CONTRACT COSTS AND DEFERRED PROJECT COSTS | 6. PROJECT ASSETS AND DEFERRED PROJECT COSTS Project assets and deferred project costs consisted of the following at December 31, 2016 and 2017, respectively: At December 31, 2016 2017 Project assets - Module cost $ 6,822,294 $ 16,369,965 Project assets - Development 42,615,862 61,259,796 Project assets - Others 5,449,251 6,407,213 Total project assets 54,887,407 84,036,974 Current portion 48,177,416 76,556,400 Non-current portion 6,709,991 7,480,574 Total deferred project costs 16,374,899 17,957,041 Current portion - 17,957,041 Non-current portion 16,374,899 - Total project assets and deferred project costs $ 71,262,306 $ 101,994,015 |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2017 | |
PROPERTY, PLANT AND EQUIPMENT, NET [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | 7. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net, comprise: At December 31, 2016 2017 Buildings $ 282,000 $ 282,000 Plant and machinery 4,873 1,097,710 Motor vehicles - 50,971 Office equipment 50,170 39,247 Power stations 23,170,604 125,753,462 Less: Accumulated depreciation (3,354,205) (8,388,858) 20,153,442 118,834,532 Construction in progress 5,147 35,824,545 Property, plant and equipment, net $ 20,158,589 $ 154,659,077 Construction in progress mainly represents new solar power projects for self-electricity generation in China. The carrying amount of the power stations of $ 23.2 for electricity generation purpose Depreciation expense for the years ended December 31, 2015, 2016 and 2017 was $ 3,548,898 2,400,522 4,475,823 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2017 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | 8. FAIR VALUE MEASUREMENTS The Company adopted ASC 820, “Fair Value Measurements and Disclosures”, which provides a framework for measuring fair value under U.S. GAAP, and expanded disclosure requirements about assets and liabilities measured at fair value. The Company utilizes a hierarchy for inputs used in measuring fair value that gives the highest priority to observable inputs and the lowest priority to unobservable inputs as follows: • Level 1-Observable unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2-Observable inputs other than quoted prices in active markets for identical assets or liabilities, for which all significant inputs are observable, either directly or indirectly. • Level 3-Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. Recurring basis As of December 31, 2016 and December 31, 2017, there is no assets and liabilities measured on the Company’s consolidated balance sheet at fair value on a recurring basis subsequent to initial recognition. Non-recurring basis The carrying amount of long-term borrowing and liabilities approximates their fair value due to the fact that the related interest rates approximate rates currently offered by financial institutions for similar debt instruments of comparable maturities. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 9. INCOME TAXES The Company and its subsidiaries file separate income tax returns. British Virgin Islands Under the current laws of the British Virgin Islands(“BVI”), the Company’s subsidiary in BVI is not subject to tax on its income or capital gains. In addition, upon any payment of dividends by the Company, no British Virgin Islands withholding tax is imposed. People’s Republic of China On March 16, 2007, the National People’s Congress approved the Corporate Income Tax Law of the People’s Republic of China (the “CIT Law”) with effective on January 1, 2008. The CIT Law enacted a statutory income tax rate of 25 Pursuant to PRC tax laws, certain subsidiaries of the Company are solar power generation enterprises, which are entitled to a three-year tax exemption from CIT mainly beginning from 2017 that approved by governing tax authorities and a 50% CIT reduction for the succeeding three year thereafter. United States ReneSola US is incorporated in California, the United States. It is subject to a progressive federal corporate income tax from 15 35 8.84 The tax benefit (expense) from continuing operations comprises: Years ended December 31, 2015 2016 2017 Income (Loss) before income tax PRC $ - $ (69,465) $ 2,938,038 Other jurisdictions 20,190,079 296,039 583,861 Total 20,190,079 226,574 3,521,899 Current tax benefit (expense) PRC - - (11,926) Other jurisdictions (34,721) (283,829) (222,094) Subtotal (34,721) (283,829) (234,020) Deferred tax benefit (expense) - PRC - - 1,402 Other jurisdictions 57,912 151,737 (89,450) Subtotal 57,912 151,737 (88,048) Total income tax benefit (expense) $ 23,191 $ (132,092) $ (322,068) There was no reversal or addition of unrecognized tax benefits during the year ended December 31, 2015, 2016 and 2017, respectively. The Company classifies interest and penalties related to income tax matters in income tax expense. As of December 31, 2015, 2016 and 2017, there were no interests and penalties related to uncertain tax positions. As of December 31, 2016 and 2017, there was no accrual of uncertain tax benefits recognized by the Company. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer. The statute of limitations will be extended to five years under special circumstances, which are not clearly defined, but an underpayment of taxes exceeding RMB 100,000 15,060 The principal components of deferred income tax assets and liabilities are as follows: At December 31, 2016 2017 Deferred tax assets: Accrued expenses $ - $ 6,254 Tax losses 3,482,010 3,234,651 Others - 55,282 Total gross deferred tax assets 3,482,010 3,296,187 Valuation allowance on deferred tax assets (3,334,464) (3,236,889) Net deferred tax assets $ 147,546 $ 59,298 As of December 31, 2017, the PRC Companies had net operating loss carry forwards of $ 2,017,109 284,543 1,732,566 The Company considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will not be realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carry forward periods, the Company’s experience with tax attributes expiring unused and tax planning alternatives. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible for tax purposes. As a result, the Company has recognized a valuation allowance of $ 3,334,464 3,236,889 Reconciliation between the applicable statutory income tax rate and the Company’s effective tax rate for the years ended December 31, 2015, 2016 and 2017 is as follows: Years ended December 31, 2015 2016 2017 PRC applicable income tax rate 25 % 25 % 25 % Valuation allowance 1 % 26 % (3) % Preferential tax rate - - (24) % Effect of different tax rate of subsidiaries (22) % 20 % (4) % Others (4) % (13) % (4) % Effective income tax rate 0 % 58 % (10) % The following table sets forth the effect of preferential tax on China operations for the years ended December 31 2015, 2016 and 2017, respectively: Year ended December 31, 2015 2016 2017 USD USD USD Preferential tax effect $ - $ - $ 845,010 Basic earnings per share from continuing operations effect -decrease - - - Diluted earnings per share from continuing operations effect -decrease $ - $ - $ - |
BORROWINGS AND OTHER FINANCING
BORROWINGS AND OTHER FINANCING ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2017 | |
BORROWINGS [Abstract] | |
BORROWINGS | 10. BORROWINGS AND OTHER FINANCING ARRANGEMENTS a) Bank borrowings The Company’s bank borrowings consist of the following: At December 31, 2016 2017 Short-term $ - $ 6,605,894 Long-term 28,835,700 32,513,900 $ 28,835,700 $ 39,119,794 As of December 31, 2016, long-term borrowings of $28,835,700 was joint guaranteed by two subsidiaries of the Company. As of December 31, 2017, short-term borrowings of $ 6,605,894 32,513,900 i) Short-term Interest rates are fixed for the short-term borrowings as of December 31, 2017. The weighted average interest rate of short term loans in the years ended December 31, 2017 was 6.0 ii) Long-term Interest rates are fixed for the above long-term bank loans. The weighted average interest rate of long-term borrowings was 6.58 6.80 5.80 All the principals of the long-term bank loans should be repaid in 2020 as illustrated in the table below: 2018 $ - 2019 - 2020 $ 32,513,900 b) Financings associated with failed sale-lease back transactions In 2017, certain subsidiaries of the Company (“seller-lessee”) sold material of self-built solar projects (“leased assets”) with carrying amount of $ 33,753,639 39,535,563 for 5 to 10 years As the leased assets are considered integral with real estate under ASC 360, the sale-leaseback rules related to real estate are applied. The lease transactions do not qualify as a sale-leaseback transaction as these solar projects are initially invested and build up by seller-lessee with expected useful life of 25 years, and are continuingly maintained by seller-lessee. Seller-lessee has an obligation to repurchase the leased assets upon the expiry of the lease. In addition, after the lease period, seller-lessee will keep using the assets and has no plans to sell or early-disposal. Accordingly, these transactions are accounted for as financing transactions in accordance with ASC 840. Internal rate of return is used in the computation of interest cost. The assets remain in the PPE and continue to be depreciated. As of December 31, 2017, the Company recorded $ 38,575,716 1,638,904 6.07 836,959 c) Capital lease In 2017, the Company leased module, inverter and other materials from different domestic financial leasing companies. Pursuant to the terms of the contract, the Company is required to pay to the finance lease companies lease payments and is entitled to obtain the ownership of these machinery and equipment at a nominal price upon the expiration of the lease. These arrangements are guaranteed by other subsidiaries of the Company and also pledged by the shares and rights for the future power generation income of the leases. The lease is classified as capital lease. As of December 31, 2017, the carrying amount of the material related to this capital lease contract is $ 32,994,934 25 29,298,799 As of December 31, 2017, the net value of the leased assets are: As of December 31, 2017 Module, inverter and etc. $ 32,994,934 As of December 31, 2017, future minimum payments required under the capital lease are: USD Year ended December 31, 2018 $ 2,149,749 2019 6,071,530 2020 6,510,005 2021 6,670,450 2022 6,670,450 2023 and later 10,782,597 Total minimum lease payments 38,854,781 Less: Amount representing interest (9,555,982) Present value of net minimum lease payments 29,298,799 Current portion 369,046 Non-current portion $ 28,929,753 USD Year ended December 31, 2017 Non-current portion for Capital lease $ 28,929,753 Non-current portion for failed sale and lease back $ 38,575,716 Total failed sale-lease back and capital lease liabilities 67,505,469 e) Interest expense Interest expense incurred for the years ended December 31, 2017 was $ 4,045,277 108,975 |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
OTHER CURRENT LIABILITIES [Abstract] | |
OTHER CURRENT LIABILITIES | 11. OTHER CURRENT LIABILITIES The Company’s other current liabilities are summarized below: At December 31, 2016 2017 Payable for purchase of property, plant and equipment $ 2,051,958 $ 25,562,367 Payable for lease fee of rooftops - 2,117,606 Payables associated with failed sale-lease backcurrent portion - 1,638,904 Payables associated with capital lease current portion - 369,046 Other tax payables 59,837 229,361 Accrued EPC warranty liabilities - 132,007 Others (1) 6,238,160 464,944 $ 8,349,955 $ 30,514,235 (1) The others as of December 31, 2016 mainly included the payable for the development and construction of project assets. |
CONVERTIBLE SENIOR NOTES
CONVERTIBLE SENIOR NOTES | 12 Months Ended |
Dec. 31, 2017 | |
CONVERTIBLE SENIOR NOTES [Abstract] | |
CONVERTIBLE SENIOR NOTES | 12. CONVERTIBLE SENIOR NOTES On March 15, 2011, the Company issued $ 175,000,000 4.125 25,000,000 Interest Redemption at maturity 100 Conversion. 10.5473 2,478,833 Put Options 100 No beneficial conversion feature charge was recognized for the issuance of the Notes as the estimated fair value of the ordinary shares was less than the conversion price on the date of issuance. The embedded conversion option and put options are not bifurcated and recognized as derivatives. Capped call transaction. 15.0675 21,504,779 3,197,500 88,384,000 57,055,127 2,978,934 28,349,939 861,280 For the year ended December 31, 2015, approximately $ 68,454,000 54,376,600 384,131 13,693,269 For the year ended December 31, 2016, approximately $ 26,145,000 25,931,219 1,725 212,056 As of December 31, 2016 and 2017, there were no outstanding notes. The issuance costs of $ 7,156,101 764,527 32,935 |
WARRANT LIBILITY
WARRANT LIBILITY | 12 Months Ended |
Dec. 31, 2017 | |
WARRANT LIBILITY [Abstract] | |
WARRANT LIBILITY | 13. WARRANT LIABILITY In connection with the public offering of the Company’s common stock that closed on September 16, 2013, the Company issued to its underwriters, a warrant to purchase up to a total of 10,500,000 35 30.2 1,050,000 3.02 The Company is accounting for the warrant as a derivative liability because the exercise price is subject to adjustment under several special circumstances, including anti-dilution clauses. As a result, the warrant is not considered indexed to the Company’s own stock, and as such, all future changes in the fair value of the option are recognized currently in earnings until such time as the warrant is exercised or expired. On September 16, 2013, the issue date of the warrant, the Company recorded this warrant at its fair value of $ 12,547,500 1,312,500 577,500 This warrant did not trade in an active securities market, and as such, the Company estimated its fair value using the Monte Carlo Simulation as of the date that the warrant was originally issued and as of each year and reporting date using the following main assumptions. No warrant is outstanding as of December 31, 2017. As September 16, As December 31, 2015 2016 Stock price $ 8.50 $ 3.20 Exercise price $ 30.2 $ 30.2 Annual dividend yield - % - % Time to maturity 1.7 0.7 Risk-free interest rate 0.93 % 0.70 % Expected volatility 67.2 % 42.9 % Expected volatility is based on historical volatility. Historical volatility is computed using daily pricing observations for recent periods that correspond to the term of the warrant. The Company believes this method produces an estimate that is representative of future volatility over the expected term of this warrant. The expected life is based on the remaining term of the warrant. The risk-free interest rate is based on U.S. Treasury securities with time to maturity close to the remaining term of the warrant. The beginning and ending balances of warrant liability are measured at fair value on a recurring basis using Level 2 inputs. As of December 31, 2016 and 2017, the warrant liability balance was nil. |
SHARE BASED COMPENSATION
SHARE BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2017 | |
SHARE BASED COMPENSATION [Abstract] | |
SHARE BASED COMPENSATION | 14. SHARE BASED COMPENSATION 2007 Share Incentive Plan On September 27, 2007, the Company adopted the ReneSola Ltd 2007 Share Incentive Plan (the “Plan”) that provides for grant of share options, restricted shares and restricted share units to employees in the Plan. A maximum of 7,500,000 Except as otherwise noted in the award agreements with the employee or consultant, the options can be exercised within six years from the award date, except for participant’s termination of employment or service. The vesting schedule and the exercise price per share will be determined by the Committee and set forth in the individual award agreement. In the event of any distribution, share split, or recapitalization of the Company, the Committee shall make such proportionate and equitable adjustments, if any, to reflect such change with respect to (a) the aggregate number and type of shares that may be issued under the Plan and (b) the terms and conditions of any outstanding awards. Except as may otherwise be provided in any award agreement, if a change of control occurs and a participant’s awards are not converted, assumed, or replaced by a successor, such awards shall become fully exercisable and all forfeiture restrictions on such awards shall lapse. Options to Employees From January to December 2015, the Company granted 1,150,000 0.74 825,000 0.74 1,550,000 0.64 Options Modification On August 8, 2012, the Board of Directors approved an option modification to reduce the exercise price of all the options granted before August 8, 2012 to the then fair market value of the Company’s ordinary shares underlying such options. All other terms of the share options granted remain unchanged. The modification resulted in incremental compensation cost of $ 774,932 444,373 330,559 On March 18, 2014, the Board of Directors approved another option modification to reduce the exercise price of certain options granted between August 8, 2012 and December 31, 2013 to the then fair market value of the Company’s ordinary shares underlying such options. All other terms of the share options granted remain unchanged. The incremental compensation cost resulted from modification was not material. The fair value of each option grant, as well as the fair value of option immediately before and after the aforementioned modification, is estimated on the date of grant or modification using the Black-Scholes option pricing model using the assumptions noted below. Average risk-free Weighted average Volatility rate Dividend Granted in 2015 1.36-1.76 % 3.2 years 140.01-146.02 % 0 % Granted in 2016 1.00-1.52 % 3.2 years 119.83-146.29 % 0 % Granted in 2017 1.93-2.00 % 3.2 years 103.04-109.89 % 0 % Expected volatilities based on the average of the standard deviation of the daily stock prices of the Company and other selected comparable companies in the same industry. The expected term of options represents the period of time that options granted are expected to be outstanding. The risk-free rate of return is based on the US Treasury bond yield curve in effect at the time of grant for periods corresponding with the expected term of the option. A summary of the option activity is as follows: Number of Weighted Weighted Aggregate Options Outstanding on January 1, 2015 7,401,800 0.74 2.00 - Granted 1,150,000 0.74 - - Exercised (843,000) 0.74 - - Forfeited (1,761,800) 0.74 - - Outstanding on December 31, 2015 5,947,000 0.74 2.14 685,055 Granted 825,000 0.74 - - Exercised - - - - Forfeited (687,000) 0.74 - - Outstanding on December 31, 2016 6,085,000 0.74 1.75 - Granted 1,550,000 0.64 3.50 - Exercised - - Forfeited (1,470,000) 0.74 - - Outstanding on December 31, 2017 6,165,000 0.71 1.64 - Vested or expected to vest at December 31, 2017 6,092,175 0.71 1.62 - Exercisable at December 31, 2017 3,785,000 0.74 0.73 - The weighted average grant date fair value of options granted during the years ended December 31, 2015, 2016 and 2017 was $ 0.72 0.48 0.41 Total intrinsic value of options exercised for the years ended December 31, 2015, 2016 and 2017 was $ 644,895 Compensation cost of $ 1,204,494 692,322 783,118 1,146,076 1.21 Restricted Share Units In May 2014, the Compensation Committee of the Board of Directors of the Company approved a Restricted Share Units (“RSUs”) award program pursuant to the Plan. A summary of the RSUs activity is as follows: Number of Weighted RSUs Unvested on January 1, 2015 750,000 2.72 Vested (200,000) 2.72 Forfeited (412,500) 2.72 Unvested on December 31, 2015 137,500 1.36 Granted 280,000 0.63 Vested (137,500) 1.36 Unvested on December 31, 2016 280,000 0.63 Granted - - Vested (140,000) 0.63 Unvested on December 31, 2017 140,000 0.63 The RSUs are measured based on the fair market value of the underlying common stock on the dates of grant. The aggregate compensation cost for RSUs recorded under the Plan was $ 323,000 54,658 87,500 120,342 32,842 The total fair value of shares vested during the year ended December 31, 2015, 2016 and 2017 was amounting to $ 144,000 85,940 39,760 Share Awards to Employees of Disposed Business Upon the disposal in September 2017 (as described in note 3), the options previously granted to the employees who were in the discontinued operations under 2017 Share Incentive Plan shall continue to be vested and exercisable. Accordingly to ASC 718, the Company has immediately recognized all the unrecognized compensation expenses as of the disposal date related to the options previously granted to the employees in the discontinued operations under 2017 Share Incentive Plan as the employees became non-employee after the disposal. The options held by the employees in the discontinued operations from the disposal point forward would be measured at fair value according to ASC 815, Derivatives and Hedging. For the year ended December 31, 2017, the fair value change was nil as the exercise prices of the options granted were higher than the ordinary share fair value. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2017 | |
EMPLOYEE BENEFITS [Abstract] | |
EMPLOYEE BENEFITS | 15. EMPLOYEE BENEFITS In accordance with the relevant rules and regulations in the PRC, employees of the Company are covered by benefit plans established by the local government. These plans are defined contribution plans and Zhejiang Yuhui Investment Co., Ltd. (“Zhejiang Yuhui Investment”), Sichuan Bo Bo Power Engineering Co., Ltd. (“Sichuan Bo Bo”) and ReneSola Shanghai Ltd (“ReneSola Shanghai”), have contributed 14 19 20 22 18 19.2 The total contribution was $ 181,227 215,981 674,100 |
DISTRIBUTION OF PROFIT_AND REST
DISTRIBUTION OF PROFIT AND RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Distribution Of Proft And Restricted Net Assets Disclosure [Abstract] | |
Distribution Of Proft And Restricted Net Assets Disclosure | 16. DISTRIBUTION OF PROFIT AND RESTRICTED NET ASSETS As stipulated by the relevant laws and regulations applicable to China’s foreign investment enterprises, the Company’s PRC subsidiaries are required to make appropriations from net income as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) to non-distributable reserves which include a general reserve and a staff welfare and bonus reserve. Wholly-owned PRC subsidiaries are not required to make appropriations to the enterprise expansion reserve but appropriations to the general reserve are required to be made at not less than 10 The general reserve is used to offset future losses. The subsidiary may, upon a resolution passed by the shareholder, convert the general reserve into capital. The staff welfare and bonus reserve is used for the collective welfare of the employees. These reserves represent appropriations of the retained earnings determined in accordance with the Chinese law. In addition to the general reserve, the Company’s PRC subsidiaries are required to obtain approval from the local PRC government prior to distributing any registered share capital. Accordingly, both the appropriations to general reserve and the registered share capital of the Company’s PRC subsidiaries are considered as restricted net assets amounting to $ 9,266,177 16,000,000 14 17.5 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 17. EARNINGS PER SHARE For the years ended December 31, 2015 2016 2017 Numerator: Net income from continuing operations $ 20,213,270 $ 94,482 $ 3,199,831 Net income/(loss) from discontinued operations (25,288,392) (34,792,733) 31,257,707 Total net income/(loss) (5,075,122) (34,698,251) 34,457,538 Net income from continuing operations 20,213,270 94,482 3,199,831 Dilutive effects of convertible notes and warrants - - - Numerator for diluted income per share for continuing operations 20,213,270 94,482 3,199,831 Numerator for diluted income/(loss) per share for discontinued operations (25,288,392) (34,792,733) 31,257,707 Denominator: Denominator for basic earnings per share - weighted average number of ordinary shares outstanding 204,085,041 202,229,767 246,899,286 Dilutive effects of share options, RSUs and warrants 137,500 174,137 6,003 Denominator for diluted calculation - weighted average number of ordinary shares outstanding 204,222,541 202,403,904 246,905,289 Continuing operations: Basic earnings per share from continuing operations 0.10 0.00 0.01 Diluted earnings per share from continuing operations 0.10 0.00 0.01 Discontinued operations Basic earnings/(loss) per share from discontinued operations (0.12) (0.17) 0.13 Diluted earnings/(loss) per share from discontinued operations (0.12) (0.17) 0.13 The Company issues ordinary shares to its share depository bank which will be used to settle stock option awards upon their exercise. Any ordinary shares not used in the settlement of stock option awards will be returned to the Company. As of December 31,2016 and 2017 , there are 488,100 348,100 As the Company reports discontinued operations in the periods presented, the Company uses income from continuing operations as the control number in determining whether those potential common shares are dilutive or antidilutive. That is, the same number of potential common shares used in computing the diluted per-share amount for income from continuing operations shall be used in computing all other reported diluted per-share amounts even if those amounts will be antidilutive to their respective basic per-share amounts. |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
RELATED PARTY BALANCES AND TRANSACTIONS [Abstract] | |
RELATED PARTY BALANCES AND TRANSACTIONS | 18. RELATED PARTY BALANCES AND TRANSACTIONS (a) At December 31, 2016 2017 Due to ReneSola Singapore (1) $ - $ 60,370,065 (b) Related party transactions Years ended December 31, 2015 2016 2017 Purchase of modules from $ - $ - $ 33,238,377 Purchased services related to the construction of project assets - - 868,158 Borrowing from (2) - - 11,343,739 Lending to (3) $ - $ - $ (1,624,261) (1) After the disposal of the discontinued business in September 2017, ReneSola Singapore Pte., Ltd becomes the related party of the Company that both ReneSola Singapore and the Company are under common control of Mr. Li. The balances due to the entity and its subsidiaries were mainly modules, raw materials that the Company purchased from them. (2) It represented the borrowings under a loan agreement between the Company (“borrower”) and ReneSola Singapore (“the lender”). The lender grants to the borrower a loan in the principal amount of up to US$ 200 1 (3) It represented the loan borrowed by ReneSola Singapore’s subsidiaries bearing no interests. There is no fixed repayment schedule of this loan. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 19. COMMITMENTS AND CONTINGENCIES Year ended December 31, At December 31, 2018 $ 999,622 2019 1,093,799 2020 1,772,834 2021 1,073,805 2022 1,615,079 2023 and later 32,016,233 Total lease payments 38,571,372 (b) Legal matters The Company is a party to legal matters and claims in the normal course of its operations. While the Company believes that the ultimate outcome of these matters will not have a material adverse effect on its financial position, results of operations or cash flows, the outcome of these matters is not determinable with certainty and negative outcomes may adversely affect the Company. In July 2015, the Company entered into an agreement with Pristine, a San Francisco-based solar project developer, to form a joint venture in the United States to accelerate U.S. project development. On December 3, 2015, ReneSola filed an Action in the Superior Court of California, County of San Francisco, alleging that Pristine had breached the joint venture agreement. Pristine subsequently filed a cross-complaint alleging that the Company breached the joint venture agreement. On March 25, 2016, the Company entered into a binding settlement term sheet with Pristine and certain of its affiliates to resolve the dispute, dismiss the Action and transfer 88 MW solar energy projects under development in California, North Carolina, and Minnesota by Pristine and its affiliates to one of the Company’s wholly owned subsidiaries in the United States. The transfer was completed on May 31, 2016. The Company has become the 100 (c) Guarantee During the year of 2017, Zhejing Yuhui Investment, a subsidiary of the Company, guaranteed failed sale-lease back for project companies within the group with the amount of $ 26,755,960 5 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2017 | |
SEGMENT REPORTING [Abstract] | |
SEGMENT REPORTING | 20. SEGMENT REPORTING Prior to the disposal of discontinued business on September 29, 2017 (Note 3), which have been presented as discontinued operations for all the periods presented herein, the Company operated and managed three principal reportable segments, Wafer, Cell and module, and Solar power projects. The Wafer segment involves the manufacture and sales of monocrystalline and multicrystalline solar wafers and processing services. The Cell and module segment involves manufacture and sale of PV cells and modules, and service revenue from tolling arrangements. The solar power projects segment is a newly formed segment in year 2015 which involves solar power project development, EPC services and electricity revenue generation. Ancillary revenues and expenses and other unallocated costs and expenses are recorded in other. Pursuant to the disposal of the manufacturing business and LED distribution business on September 27, 2017 (Note 3) presented in discontinued operations for all the periods presented herein, the Company further separated the solar power project segment into three reportable segments, including solar power project development, EPC services and electricity revenue generation. Ancillary revenues and expenses and other unallocated costs and expenses are recorded in other. The chief operating decision maker is the chief executive officer of the Company. The Company only reports the segment information of net revenue and gross profit, to conform to the information the chief operating decision maker receives to assess the financial performance and allocate resources. There are no differences between the measurements of the Company’s reportable segment’s gross profit and the Company’s consolidated gross profit, as the Company uses the same profit measurement for all of the reportable segments and the consolidated entity. Furthermore, the Company’s chief operating decision maker is not provided with asset information by segment. As such, no asset information by segment is presented. The following table summarizes the Company’s revenues generated from each segment: Year ended December 31, 2015 Solar power project Electricity revenue Other Total Net revenue $ 110,737,934 $ 5,551,742 $ 41,260 $ 116,330,936 Gross profit $ 20,707,899 $ 2,308,921 $ 18,336 $ 23,035,156 Year ended December 31, 2016 Solar power project Electricity revenue Other Total Net revenue $ 77,372,737 $ 3,131,997 $ - $ 80,504,734 Gross profit $ 6,432,290 $ 800,591 $ - $ 7,232,881 Year ended December 31, 2017 Solar power project Electricity EPC Other Total Net revenue $ 64,837,042 $ 12,247,320 $ 25,853,288 $ 36,349 $ 102,973,999 Gross profit $ 3,575,775 $ 7,031,670 $ 3,524,310 $ - $ 14,131,755 The following table summarizes the Company’s revenues generated by the geographic location of customers: Years ended December 31, 2015 2016 2017 China $ - $ - $ 67,533,887 America 41,260 - 18,323,947 Japan 5,719,672 9,175,391 - Bulgaria 3,083,823 652,559 - Romania 2,467,920 2,393,030 4,844,238 England 105,018,261 68,283,754 7,271,370 Turkey - - 4,995,648 France - - 4,909 Total $ 116,330,936 $ 80,504,734 $ 102,973,999 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2017 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | 21. SUBSEQUENT EVENTS Subsequent events have been evaluated through the issuance date of the financial statements. In the first quarter of 2018, the Company acquired certain project companies from ReneSola Zhejiang Ltd. for total cash consideration of US$ 10.75 10.74 In April 2018, one of the Company’s China subsidiaries subsidiary’s subsidiary 150 23.8 200 31.7 Zhejiang Yuhui Investment is the holding company of the project assets in China for self-power generation business. subsidiary 59.87 40.13 |
SUMMARY OF PRINCIPAL ACCOUNTI31
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES [Abstract] | |
Basis of presentation | (a) Basis of presentation The consolidated financial statements have been prepared and presented in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The realization of assets and the satisfaction of liabilities in the normal course of business are dependent on, among other things, the Company’s ability to generate cash flows from operations, and the Company’s ability to arrange adequate financing arrangements, to support its working capital requirements. The Company has performed a review of its cash flow forecast for at least the twelve months following the issuance date of these financial statements. The Company expects the solar power project business to generate positive cash inflow in the forecasted period. In addition, the Company plans to continue its financing arrangements, such as renew and enter into new bank borrowings and financing lease and other arrangements, and equity contribution to meet the working capital and expenditures requirements. Based on the above factors, management believes that adequate sources of liquidity exist to fund the Company’s working capital and capital expenditures requirements, and to meet its short term debt obligations, other liabilities and commitments as they become due for at least twelve months from the issuance date of these financial statements. Disposal of manufacturing business and LED distribution business On September 25, 2017 (the “Disposal Date”), the Company transferred all of the Company’s assets and liabilities related to its manufacturing business (including polysilicon, solar wafer, solar cell and solar module manufacturing) and LED distribution business to Mr. Xianshou Li, Chairman and Chief Executive Officer of the Company, through a transfer of all the share capital in ReneSola Singapore Pte. Ltd. (“ReneSola Singapore”), a wholly-owned subsidiary of ReneSola prior to the Disposal Date. The financial results of ReneSola Singapore, together with its subsidiaries, for the twelve months ended December 31, 2015 and 2016, and the 9 months ended September 30, 2017 have been classified as discontinued operations within the accompanying consolidated financial statements. As the disposal date was just prior to the end of the quarter, there was no material transactions during the 5 days between September 25 and September 30, 2017; therefore, the disposal transaction was measured as of September 30, 2017. Unless otherwise indicated, amounts provided in these Notes pertain to continuing operations only (see Note 3 for information on discontinued operations). |
Basis of consolidation | (b) Basis of consolidation The consolidated financial statements include the financial statements of ReneSola Ltd and its subsidiaries. All inter-company transactions, balances and unrealized profits and losses have been eliminated on consolidation. |
Discontinued operations | (c) Discontinued operations A component of a reporting entity or a group of components of a reporting entity that are disposed or meet the criteria to be classified as held for sale, such as the management, having the authority to approve the action, commits to a plan to sell the disposal group, should be reported in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. Discontinued operations are reported when a component of an entity comprising operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity is classified as held for disposal or has been disposed of, if the component either (1) represents a strategic shift or (2) have a major impact on an entity’s financial results and operations. Examples include a disposal of a major geographical location, line of business, or other significant part of the entity, or disposal of a major equity method investment. In the consolidated statement of operations, result from discontinued operations is reported separately from the income and expenses from continuing operations and prior periods are presented on a comparative basis. In order to present the financial effects of the continuing operations and discontinued operations, revenues and expenses arising from intra-group transactions are eliminated except for those revenues and expenses that are considered to continue after the disposal of the discontinued operations. |
Fair value measurement | (d) Fair value measurement The Company estimates fair value of financial assets and liabilities as the price that would be received from the sales of an asset or paid to transfer a liability (an exit price) on the measurement date in an orderly transaction between market participants. When available, the Company measures the fair value of financial instruments based on quoted market prices in active markets, valuation techniques that use observable market-based inputs or unobservable inputs that are corroborated by market data. When observable market prices are not readily available, the Company generally estimates the fair value using valuation techniques that rely on alternate market data or inputs that are generally less readily observable from objective sources and are estimated based on pertinent information available at the time of the applicable reporting periods. See Note 8, “Fair Value Measurements”, for further details. |
Use of estimates | (e) Use of estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses for the reporting periods presented. Actual results could materially differ from these estimates. Significant accounting estimates are susceptible to changes with the acquisition of the information, which include revenue recognition for sales of solar power projects, inputs used to recognize revenue over time, EPC warranties, |
Cash and cash equivalents | (f) Cash and cash equivalents Cash and cash equivalents represent cash on hand and held with banks, including demand deposits, which are unrestricted as to withdrawal and use, and which have original maturities of three months or less when purchased. |
Project assets and deferred project costs | (g) Project assets and deferred project costs In 2012, the Company began entering into arrangements to develop commercial solar power projects (“project assets”) for sale upon their completion. Project assets consist primarily of costs relating to solar power projects in various stages of development that are capitalized prior to entering into a definitive sales agreement for the solar power project. These costs include certain acquisition costs, land costs and costs for developing and constructing a solar power project. Development costs can include legal, consulting, permitting, and other similar costs. Construction costs can include execution of field construction, installation of solar equipment, and solar modules and related equipment. Interest costs incurred on debt during the construction phase are also capitalized within project assets. The Company does not depreciate the project assets, when they are considered held for sale. Any revenue generated from a solar power project connected to the grid would be considered incidental revenue and accounted for as a reduction of the capitalized project costs for development. In addition, the Company presents all expenditures related to the development and construction of project assets as a component of cash flows from operating activities. During the development phase, these project assets are accounted for in accordance with the recognition, initial measurement and subsequent measurement subtopics of ASC 970- 360, as they are considered in substance real estate. While the solar power projects are in the development phase, they are generally classified as non-current assets, unless it is anticipated that construction will be completed and sale will occur within one year. The Company capitalizes the costs related to solar power projects in various stages of development prior to entering into a definitive sales agreement for the solar power project and classifies these costs as project assets on the consolidated balance sheets when the criteria in ASC 360-10-45-9 are met. If not met, the Company reclassifies them to property, plant and equipment, unless the delay in the period required to complete the sale is caused by events or circumstances beyond the Company’s control. Deferred project costs represents costs that are capitalized as deferred project assets for arrangements that are accounted for as real estate transactions after the Company has entered into a definitive sales arrangement, but before the sale is completed or before all criteria to recognize the sale as revenue is met. The Company classifies deferred project costs as noncurrent if satisfaction of all revenue recognition criteria are not expected within the next 12 months. As of December 31, 2015, the Company entered into a sale transaction for one project asset, which includes contractual provisions which may require the Company to repurchase the project asset under certain circumstances, and the revenue recognition criteria is not met until the issuance of the final acceptance certificate (“FAC”) by the customer. The repurchase provisions expired on June 30, 2017 and the FAC was received in March 2018. Deferred project costs as of December 31, 2016 and 2017 were derived from this one project. Therefore, the Company has classified the project asset as non-current deferred project costs as of December 31, 2016 and current deferred project cost as of December 31, 2017. |
Advances to suppliers and advances for purchase of property, plant and equipment | (i) Advances to suppliers and advances for purchases of property, plant and equipment In order to secure a stable supply of construction materials, the Company makes advance payments to suppliers for raw material supplies and advances for purchases of long-lived assets which are offset against future deliveries. Advances to suppliers for purchases expected within twelve months as of each balance sheet date are recorded as advances to suppliers in current assets and those associated with purchases expected over longer periods of time are recorded in non-current advance to suppliers. As of December 31, 2016 and 2017, advances to suppliers in current assets were $ 4,220,864 379,792 416,201 |
Property, plant and equipment | (j) Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and impairment. Depreciation is computed on a straight-line basis over the following estimated useful lives: 40 50 Plant and machinery 10 25 Motor vehicles 4 5 Office equipment 3 5 Power stations 25 Construction in progress represents mainly the construction of solar power projects the Company will own and operate for electricity generation. Costs incurred in the construction are capitalized and transferred to property, plant and equipment upon completion, at which time depreciation commences. Expenditures for repairs and maintenance are expensed as incurred. The gain or loss on disposal of property, plant and equipment, if any, is the difference between the net sales proceeds and the carrying amount of the disposed assets, and is recognized in the consolidated statement of operations upon disposal. |
Assets held-for-sale | (k) Assets held-for-sale Assets and asset disposal groups are classified as held-for-sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when management has committed to a plan of sale and the sale is highly probable, the assets are available for immediate sale in their present condition and they are expected to qualify for recognition as a completed sale within one year from the date of classification. Assets and liabilities classified as held for sale are measured at lower of their carrying amount and fair value less costs to sell. Long-lived assets to be sold shall be classified as held for sale considering the recognition criteria in ASC 360-10-45-9 in which all of the following criteria are met: · Management, having the authority to approve the action, commits to a plan to sell the asset. · The asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets. · An active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated. · The sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale, within one year. · The asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value. · Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. |
Interest capitalization | (l) Interest capitalization The Company capitalizes interest costs as part of the costs of constructing certain assets during the period of time required to get the assets ready for their intended use. The Company capitalizes interest to the extent that expenditures to construct an asset have occurred and interest costs have been incurred. The interest capitalized for project assets forms part of the cost of revenues when such project assets are sold and all revenue recognition criteria are met. The interest are capitalized for solar power projects that are classified as property, plant and equipment and built for the Company to own and operate for electricity generation before the projects are completed and put into operation. Interest capitalization ceases once a project is substantially complete or no longer undergoing construction activities to prepare it for its intended use. |
Impairment of long-lived assets | (m) Impairment of long-lived assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable or that the useful life is shorter than originally estimated. The Company assesses recoverability of the long-lived assets by comparing the carrying amount of the assets to the estimated future undiscounted cash flows expected to result from the use of the assets and their eventual disposition. The Company recognizes an impairment loss in the event the carrying amount exceeds the estimated future undiscounted cash flows attributable to such assets, measured as the difference between the carrying amount of the assets and the fair value of the impaired assets. The impairment losses of long-lived assets were nil for the years ended December 31, 2015, 2016 and 2017 respectively. |
Leases | Leases are classified as capital or operating leases. A lease that transfers to the lessee substantially all the benefits and risks incidental to ownership is classified as a capital lease. At inception, a capital lease is recorded at the present value of minimum lease payments or the fair value of the asset, whichever is less. Assets under capital leases are amortized on a basis consistent with that of similar fixed assets or the lease term, whichever is less. Operating lease costs are recognized on a straight-line basis over the lease term. From time to time, the Company’s subsidiaries are asked to prepay the lease costs for over one year. As of December 31, 2017, the prepaid rental fees of US$ 3,425,098 For a sale-leaseback transaction, when the transaction involves real estate or integral equipment, sale-leaseback accounting shall be used by a seller-lessee only if the transaction includes all of the following a) A normal leaseback; b) Payment terms and provisions that adequately demonstrate the buyer-lessor’s initial and continuing investment in the property; c) Payment terms and provisions that transfer all of the other risks and rewards of ownership as demonstrated by the absence of any other continuing involvement by the seller-lessee. Equipment is determined to be integral when the cost to remove the equipment from its existing location, ship and reinstall at a new site, including any diminution in fair value, exceeds 10% of the fair value of the equipment at the time of original installation. If a sale-leaseback of real estate qualifies for sale-leaseback accounting, an analysis is performed to determine if the Company can record a sale and remove the assets from the balance sheet and recognize the lease; and if so, to determine whether to record the lease as either an operating or capital lease. If a sale-leaseback transaction does not qualify for sale-leaseback accounting because of any form of continuing involvement by the seller-lessee other than a normal leaseback, it is accounted for as a financing, whichever is appropriate under ASC 360. |
Deferred convertible notes issuance costs | (o) Deferred convertible notes issuance costs Debt issuance costs are deferred and amortized using effective interest method through the earliest redemption date. The amortization, recorded in interest expense, was $ 764,527 32,935 |
Contingencies | (p)Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but the amount cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. Legal costs incurred in connection with loss contingencies are expensed as incurred. |
Income taxes | (q) Income taxes Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net operating loss carry forwards and credits by applying enacted statutory tax rates applicable to future years. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Before 2016, the component of the deferred tax assets and liabilities were individually classified as current and non-current based on the characteristics of the underlying assets and liabilities, or the expected timing of their use when they did not relate to a specific asset or liability. From 2016, the Company adopted ASU2015-17 prospectively, and as of December 31, 2016 and 2017, the components of the deferred tax assets and liabilities are all classified as non-current in a classified statement of financial position. |
Revenue recognition | Solar power project development a) Sale of project assets The Company recognizes revenue from the sale of project assets in accordance with ASC 360-20, Real Estate Sales. For these transactions, the Company has determined that the project assets, which represent the costs of constructing solar power projects, represent “integral” equipment and as such, the entire transaction is in substance the sale of real estate and subject to the revenue recognition guidance under ASC 360-20 Real Estate. Under the provisions of real estate accounting, the Company recognizes revenue under full accrual method when all of the following requirements are met: (a) the sales are consummated; (b) the buyer’s initial and continuing investments are adequate to demonstrate its commitment to pay; (c) the receivable is not subject to any future subordination; and (d) the Company has transferred the usual risk and rewards of ownership to the buyer. Specifically, the Company considers the following factors in determining whether the sales have been consummated: (a) the parties are bound by the terms of a contract; (b) all consideration has been exchanged; (c) permanent financing for which the seller is responsible has been arranged; and (d) all conditions precedent to closing have been performed, and the Company does not have any substantial continuing involvement with the project. For sales agreements that have energy generation performance guarantees covering a certain timeframe, if there is an underperformance event, the Company may incur liquidated damages as a percentage of the EPC contract price. The Revenue recognized is reduced by the maximum amount of the payable liquidated damage, which amount is deferred until the end of the guarantee period. For sales agreements that have conditional repurchase clauses if certain events occur, such as not achieving specified guaranteed performance level within a certain timeframe, the Company will defer and will not recognize revenue on such sales agreements until the conditional repurchase clauses are of no further force or effect and all other necessary revenue recognition criteria have been met. b) Sale of project asset rights The Company also sells the project rights to customers through the disposal of project companies holding the relevant permits. For these transactions, the project companies could either own the land or lease the land under the lease term that could cover the entire power plant’s life. For the transactions with the land owned, the Company accounts the entire transaction under the revenue recognition guidance of ASC 360-20 Real Estate. Under the provisions of real estate accounting, the Company recognizes revenue under full accrual method when all of the requirements mentioned in the sale of project assets above are met. For the transactions with the land leased, the Company recognizes revenue when the revenue is realized or realizable and earned in accordance with ASC 605-10-S99-1. In these transactions, the Company is also responsible for locating the electricity end subscribers for certain percentage of the entire contract consideration. A consideration reduction will occur if the located end subscribers don ’ c) Jointly arrangements of power projects for sale The Company also enters into cooperation arrangement to jointly construct power projects for sale. In the arrangement, the Company’s performance obligations generally including design, engineering, procurement of all PV modules, materials needed for the projects and locating end subscriptions, while the counterparty is the primary obligor for constructing the power projects under the joint cooperation agreement, holds the ownership of the land and power projects and sell the power projects. The Company and the counterparty each generally receive 50 EPC Services The Company provides engineering, procurement and construction (“EPC”) services under the EPC contracts to design and build the power plant on customer’s site per customer’s request. The Company generally recognize revenue for EPC services over time using a percentage-of completion method as the Company’s performance creates or enhances an energy generation asset controlled by the customer per ASC 605-35. In applying the percentage-of-completion method, the Company follows the cost-to-cost method and uses the actual costs incurred relative to the total estimated costs (including module costs) in order to determine the progress towards completion and calculate the corresponding amount of revenue and profit to recognize. Costs incurred include direct materials, solar modules, labor, subcontractor costs, and those indirect costs related to contract performance, such as indirect labor and supplies. When contracts specify that title to direct materials and solar modules transfers to the customer before installation has been performed, the Company will not recognize revenue or the associated costs until those materials are installed and have met all other revenue recognition requirements. If estimated total costs on any contract are greater than the net contract revenues, the Company recognizes the entire estimated loss in the period the loss becomes known. The cumulative effect of the revisions to estimates related to net contract revenues and costs to complete contracts, including penalties, claims, change orders, performance incentives, anticipated losses, and others are recorded in the period in which the revisions to estimates are identified and the amounts can be reasonably estimated. The effect of the changes on future periods are recognized as if the revised estimates had been used since revenue was initially recognized under the contract. Such revisions could occur in any reporting period, and the effects may be material depending on the size of the contracts or the changes in estimates. For the years ended December 31, 2015, 2016 and 2017, no such revisions occur. The Company bills the customer based on progress billing terms in the contract. Accounts receivable from EPC services (unbilled) represents revenue that has been recognized in advance of billing the customer, which is common for long-term construction contracts. The Company typically recognizes revenue from contracts for the construction and sale of PV solar power systems over time using cost based input methods, which recognizes revenue and gross profit as work is performed based on the relationship between actual costs incurred compared to the total estimated costs of the contract. Accordingly, revenue could be recognized in advance of billing the customer, resulting in an amount recorded to “Accounts receivable from EPC services (unbilled)” as disclosed in Note 4. Once the Company has an unconditional right to consideration under a construction contract, the Company typically bills the customer accordingly and reclassifies the “Accounts receivable from EPC services (unbilled)” to “Accounts receivable from EPC services (billed).” Billing requirements vary by contract but are generally structured around the completion of certain construction milestones. Certain of the EPC contracts for PV solar power systems contain retainage provisions. Retainage represents contract costs for the portion of the contract price earned for work performed, but held for payment by the customer as a form of security until certain defined timeframe has been reached. The Company considers whether collectability of such retainage is reasonably assured in connection with the Company’s overall assessment of the collectability of amounts due or that will become due under the EPC contracts. Retainage included within “Accounts receivable from EPC services (unbilled)” is expected to be billed and collected within the next 12 months. After the Company has satisfied the EPC contract requirements and have an unconditional right to consideration, the retainage is billed and reclassified to “Accounts receivable from EPC services (billed).” Refer to Note 4 for detail breakdown of the “Accounts receivable from EPC services (unbilled)” and “Accounts receivable from EPC services (billed)” amounts. For EPC services, the Company provides limited warranty for certain years for the modules, materials and construction part of the power plants. Although the Company subcontracts the construction to third party developers and purchase the raw materials and modules from third party suppliers, the Company is the primary obligor for the limited warranties such as solar module product warranty for a period of five to ten years, warranties for defects in engineering design, installation, workmanship for a period of one to two years and records a liability “Accrued EPC warranty liabilities” which is grouped under “Other current liabilities” in the Consolidated Balance Sheet and disclosed in Note 11. On another hand, the Company has a legally enforceable right to recover these warranties from the subcontractor and suppliers as these parties have contracted with the Company to assume these warranty obligations, and that the Company will also record receivables for expected reimbursement in amounts that the Company believes are probable as “EPC Warranty reimbursement receivables” which is grouped under “Prepaid expenses and other current assets” in the Consolidated Balance Sheet and disclosed in Note 5. The EPC warranty expenses and expected recovery amounts related to warranties are recorded net in expense in the Consolidated Statement of Operations on the basis that the amounts provided by the subcontractor and suppliers are a reimbursement of the Company’s costs. As of December 31, 2016 and 2017, the liabilities and receivables are not material. The related expenses for the three years ended Dec 31, 2015, 2016 and 2017 are also not material. Electricity revenue generation The Company recognizes electricity generation revenue for company operated power plant when persuasive evidence of a power purchase arrangement with the power grid company exists, electricity has been generated and been transmitted to the grid and the electricity generation records are reconciled with the grid companies, the price of electricity is fixed or determinable and the collectability of the resulting receivable is reasonably assured. Note that the Company is entitled to the feed-in tariff(s) (FIT) that the government guaranteed and subsidized electricity sale price at which solar power projects can produce green energy. The Company recognizes the FIT as part of the electricity generation revenue when the entitlement to receipt of such FIT is fulfilled. Revenue from green certificates The Company receives green energy certificates based on electricity generated from the power plants in a subsidiary. The Company sells these certificates to buyers who can then meet the mandatory government quota per year for green energy produced. The Company believes that these green certificates are government incentive and the sale of green energy certificates does not fall into derivative and lease accounting scope. The Company recognizes revenue for the sale in accordance with ASC 605-10-S99-1 when persuasive evidence of a green certificate purchase arrangement with the buyer exists, green certificates have been delivered to the buyer, the price of total green certificates sold is fixed or determinable and the collectability of the resulting receivable is reasonably assured. For the years ended December 31, 2015, 2016 and 2017, revenue from green certificates were $ 1,534,297 1,708,163 4,184,724 , and are included in electricity generation revenue Value added tax (“VAT”) Value added tax (“VAT”) at a differentiated rates on invoice amount is collected on behalf of tax authorities in respect of the different types of revenues and is not recorded as revenue. VAT paid for purchases, net of VAT collected from customers, is recorded as an asset. |
Deferred project revenue | (s) Deferred project revenue Deferred project revenue was $ 32,242,995 20,791,918 2017 |
Other operating expense (income) | (t) Other operating expense (income) Other operating expense (income) primarily consists of gains or losses on disposal of property, plant and equipment. |
Foreign currency | (u) Foreign currency The functional currency of ReneSola Ltd (the parent) is the United States Dollar (“U.S. dollar”). The functional currency of ReneSola’s subsidiaries in the PRC is Renminbi (“RMB”). The functional currency of the overseas subsidiaries normally is the local currency the subsidiary domiciles. Foreign currency transactions have been translated into the functional currency at the exchange rates prevailing on the date of transactions. Foreign currency denominated monetary assets and liabilities are remeasured into the functional currency at exchange rates prevailing on the balance sheet date. Exchange gains and losses have been included in the determination of net income. The Company has chosen the U.S. dollar as its reporting currency. Assets and liabilities have been translated using exchange rates prevailing on the balance sheet date. Income statement items have been translated using the weighted average exchange rate for the year. Translation adjustments have been reported as a component of other comprehensive income in the statement of comprehensive income. The RMB is not a freely convertible currency. The PRC State Administration for Foreign Exchange, under the authority of the People’s Bank of China, controls the conversion of RMB into foreign currencies. The value of the RMB is subject to changes in central government policies and to international economic and political developments affecting supply and demand in the China foreign exchange trading system market. The Company’s cash and cash equivalents denominated in RMB amounted to RMB 14,629,660 19,626,332 |
Fair value of financial instruments | (v) Fair value of financial instruments Fair value represents the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (also referred to as an exit price). The Company utilizes a hierarchy for inputs used in measuring fair value that gives the highest priority to observable inputs and the lowest priority to unobservable inputs. Valuation techniques used to measure fair value shall maximize the use of observable inputs. When available, the Company measures the fair value of financial instruments based on quoted market prices in active markets, valuation techniques that use observable market-based inputs or unobservable inputs that are corroborated by market data. Pricing information the Company obtains from third parties is internally validated for reasonableness prior to use in the consolidated financial statements. When observable market prices are not readily available, the Company generally estimates the fair value using valuation techniques that rely on alternate market data or inputs that are generally less readily observable from objective sources and are estimated based on pertinent information available at the time of the applicable reporting periods. In certain cases, fair values are not subject to precise quantification or verification and may fluctuate as economic and market factors vary and the Company’s evaluation of those factors changes. Although the Company uses its best judgment in estimating the fair value of these financial instruments, there are inherent limitations in any estimation technique. In these cases, a minor change in an assumption could result in a significant change in its estimate of fair value, thereby increasing or decreasing the amounts of the Company’s consolidated assets, liabilities, equity and net income or loss. See Note 8, “Fair Value Measurements”, for further details. |
Earnings (loss) per share | Basic earnings (loss) per share is computed by dividing income attributable to holders of common shares by the weighted average number of common shares outstanding during the year. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted into common shares. |
Share-based compensation | (x) Share-based compensation The Company recognizes expenses for services received in exchange for awards of equity instruments based on the grant-date fair value of the award as determined by the Black-Scholes option pricing model, net of estimated forfeitures. The estimated compensation cost is recognized ratably over the period the grantee is required to provide services per the conditions of the award. See Note 14, “Share Based Compensation”, for further details. |
Comprehensive income (loss) | (y) Comprehensive income (loss) Comprehensive income is the change in equity during a period from transactions and other events and circumstances from non-shareholder sources and included net income and foreign currency translation adjustments. As of December 31, 2016 and 2017, accumulated other comprehensive income represented of foreign currency translation adjustments. |
Treasury Stock | On September 23, 2015, the Company’s Board of Directors authorized the Company to repurchase up to $ 20 ten ordinary shares (Note in February 2017, the Company changed the number of the Company’s shares represented by each American Depositary Share (“ADS”) from two (2) shares to ten (10) shares) In the year ended December 31, 2015, the Company repurchased an aggregate of 161,477 1,614,776 812,184 In September 2016, the Company’s Board of Directors decided to extend the share repurchase program for another 12 months ending September 2017. In the year ended December 31, 2016, the Company repurchased an aggregate of 280,429 2,804,286 1,493,352 As of December 31, 2016, the Company had cancelled 1,352,586 of the treasury stock from the 2016 repurchase and in 2017 cancelled the remaining 1,451,700 |
Concentrations of credit risk | (aa) Concentrations of credit risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable, advances to suppliers and other receivables. The Company places its cash and cash equivalents with financial institutions with good reputation |
Recently issued accounting pronouncements | (ab) Recently issued accounting pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” a new standard on revenue which will supersede the revenue recognition requirements in ASC 605. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date,” which delays the effective date of ASU 2014-09 by one year. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective date. In March 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” which clarifies the implementation guidance on principal versus agent considerations. Further, in 2016, the FASB issued five amendments to the new standard. The new standard, as amended, sets forth a single comprehensive model for recognizing and reporting revenues. The new guidance requires the Company to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance requires the Company to apply the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the Company satisfies a performance obligation. The standard also requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenues and cash flows relating to customer contracts. The standard is effective for public companies for fiscal years, and interim periods within those years, beginning on or after December 31, 2017. Early adoption is permitted but not before periods beginning on or after January 1, 2017. The Company expects to adopt the standard starting January 1, 2018. The standard allows for two methods of adoption: the full retrospective adoption, which requires the standard to be applied to each prior period presented, or the modified retrospective adoption, which requires the cumulative effect of adoption to be recognized as an adjustment to opening retained earnings in the period of adoption. The Company anticipates adopting the standard using the modified retrospective method. The Company expects this adoption to primarily affect certain solar power project sales arrangements currently accounted for under ASC 360-20, which requires the Company to evaluate whether such arrangements have any forms of continuing involvement that may affect the revenue or profit recognition of the transactions, including arrangements with prohibited forms of continuing involvement requiring the Company to reduce the potential profit on a project sale by the maximum exposure to loss, variable considerations for energy performance guarantees, minimum electricity end subscription commitments for sales of project asset rights . The Company is in the process of identifying and evaluating all of its contracts with customers, and comparing the requirements of the new standard with its current accounting policies. This includes an analysis of, among other things: the timing of revenue recognition, the allocation of value for performance obligations that might be bundled within contractual arrangements, and the method of recording revenue on a gross vs. net basis. Further, the Company is evaluating whether any revenue-related costs for commissions, customer acquisition or similar costs, variable considerations would be affected by the new standard. The Company is also evaluating the impact of the additional required disclosure, including disaggregation of revenue, under the new standard. With the analysis performed to date, the Company anticipates that ASU 2014-09, which supersedes the real estate sales guidance under ASC 360-20, will not result in material earlier recognition of revenue and profit. In addition, the Company expects revenue recognition for other sales arrangements, to remain materially consistent with the current practice. In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10)-Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 changes how entities measure certain equity investments and present changes in the fair value of financial liabilities measured under the fair value option that are attributable to their own credit. The guidance also changes certain disclosure requirements and other aspects of current U.S. GAAP. Further, in March 2018, the FASB issued ASU 2018-03 “Technical Corrections and Improvements to Financial Instruments Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which provides further guidance on adjustments for observable transaction for equity securities without a readily determinable fair value and clarification on fair value option for liabilities instruments. ASU 2016-01 is effective for fiscal years and interim periods within those years beginning after December 15, 2017, and certain provisions of the guidance may be early adopted. We do not expect the adoption of ASU 2016-01 and 2018-03 to have a significant impact on our consolidated financial statements and associated disclosures. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842) “. This update requires an entity to recognize lease assets and lease liabilities on the balance sheet and to disclose key information about the entity’s leasing arrangements. ASU 2016-02 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2018, with early application permitted. A modified retrospective approach is required. The Company is still in the process of assessing the potential financial impact the adoption will have to the Company. In March, 2016, the FASB issued Accounting Standards Update No. 2016-09 (ASU 2016-09), “Compensation Stock Compensation (Topic 718)”, which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The ASU is effective for annual periods beginning after December 15, 2016 and early adopt is permitted. The Company has adopted the standard in the first quarter of 2017 and assessed that there’s no material impact of the standard on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments Credit Losses (Topic 326), to provide financial statement users with more useful information about expected credit losses. ASU 2016-13 also changes how entities measure credit losses on financial instruments and the timing of when such losses are recorded. ASU 2016-13 is effective for fiscal years and interim periods within those years beginning after December 15, 2019, and early adoption is permitted for periods beginning after December 15, 2018. We are currently evaluating the impact ASU 2016-13 will have on our consolidated financial statements and associated disclosures. In August, 2016, the FASB issued Accounting Standards Update No. 2016-15 (ASU 2016-15), “Statement of Cash Flows”. The new guidance is intended to reduce the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The ASU is effective for public companies for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including interim periods within those fiscal years. An entity that elects early adoption must adopt all of the amendments in the same period. The guidance requires application using a retrospective transition method. We do not expect the adoption of ASU 2016-15 to have a significant impact on our consolidated financial statements and associated disclosures. In October 2016, the FASB issued Accounting Standards Update No. 2016-16 (ASU 2016-16), “Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory”. The new guidance requires that entities recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs, rather than when the asset is sold to an outside party. The guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period (as of the first interim period if an entity issues interim financial statements). The new guidance requires adoption on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We do not expect the adoption of ASU 2016-16 to have a significant impact on our consolidated financial statements and associated disclosures. In November, 2016, the FASB issued Accounting Standards Update No. 2016-18 (ASU 2016-18), “Statement of Cash Flows”, which amends ASC 230 to add or clarify guidance on the classification and presentation of restricted cash in the statement of cash flows. The ASU is effective for annual and interim periods beginning after December 15, 2017 and early adoption is permitted. We do not expect the adoption of ASU 2016-18 to have a significant impact on our consolidated financial statements and associated disclosures. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business” (“ASU 2017-01”), which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard introduces a screen for determining when assets acquired are not a business and clarifies that a business must include, at a minimum, an input and a substantive process that contribute to an output to be considered a business. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company has adopted ASU 2017-01 in the current year and the adoption had no material impact on the Company’s consolidated financial statements. In August 2017, the Financial Accounting Standard Board (“FASB”) issued ASU 2017-12, Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities, to simplify certain aspects of hedge accounting for both non-financial and financial risks and better align the recognition and measurement of hedge results with an entity’s risk management activities. ASU 2017-12 also amends certain presentation and disclosure requirements for hedging activities and changes how an entity assesses hedge effectiveness. ASU 2017-12 is effective for fiscal years and interim periods within those years beginning after December 15, 2018, and early adoption is permitted. We are currently evaluating the impact ASU 2017-12 will have on our consolidated financial statements and associated disclosures. In February 2018, the Financial Accounting Standard Board (“FASB”) issued ASU 2018-02, Income Statement Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, to allow entities to reclassify the income tax effects of the Tax Act on items within accumulated other comprehensive income to retained earnings. ASU 2018-02 is effective for fiscal years and interim periods within those years beginning after December 15, 2018, and early adoption is permitted. We are currently evaluating the impact ASU 2018-02 will have on our consolidated financial statements and associated disclosures. |
SUMMARY OF PRINCIPAL ACCOUNTI32
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES [Abstract] | |
Schedule of property, plant and equipment stated at cost less accumulated depreciation | 40 50 Plant and machinery 10 25 Motor vehicles 4 5 Office equipment 3 5 Power stations 25 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | A reconciliation of disposal gain is presented as follows. Reconciliation of disposal gain: Item Amount in US$ million Waiver of the Company’s payable to the Buyer of the discontinued operations 217.4 Fair value of shares issued to the Buyer (42.5) Net assets of discontinued operations as of the disposal date (133.6) Release of currency translation difference due to discontinued operations 65.0 Disposal Gain 106.3 Results of the discontinued operations January 1 2015 2016 2017 Revenues $ 1,165,700,510 $ 849,331,555 $ 472,568,586 Cost of revenues (1,000,861,822) (747,068,354) (457,058,538) Gross Profit 164,838,688 102,263,201 15,510,048 Operating (expenses)/income: Selling and marketing (72,061,281) (46,914,631) (24,259,869) General and administrative (51,896,423) (44,629,891) (32,341,022) Research and development (43,905,312) (27,286,652) (14,715,027) Other income 16,009,232 3,771,645 8,776,633 Impairment loss of assets - (4,624,979) - Total operating expenses (151,853,784) (119,684,508) (62,539,285) Income/(Loss) from operations 12,984,904 (17,421,307) (47,029,237) Interest income 2,836,225 2,349,791 1,144,135 Interest expenses (41,418,331) (32,097,477) (25,518,288) Exchange (loss)/gain (935,402) 9,945,642 (7,095,061) Gain/(losses) on derivatives 1,941,019 4,592,125 (1,284,379) Loss from discontinued operations before income taxes (24,591,585) (32,631,226) (79,782,830) Income tax (expense)/benefit, net (696,807) (2,161,507) 4,748,324 Loss from discontinued operations, net of tax $ (25,288,392) $ (34,792,733) $ (75,034,506) December 31, 2016 Assets Cash and cash equivalents $ 33,371,486 Restricted cash 95,861,139 Accounts receivable, net of allowances for doubtful accounts 72,732,734 Notes receivable, net - third parties 43,858,319 Inventories 143,975,999 Advances to suppliers-current 10,722,586 Amounts due from related parties 13,065,625 Prepaid income tax 1,020,676 Prepayments and other current assets 19,315,500 Derivative assets 2,715,736 Assets held-for-sales 7,558,218 Total current assets 444,198,018 Property, plant and equipment, net 471,096,623 Prepaid land rent, net 31,850,188 Deferred tax assets, non-current 15,391,396 Restricted cash non current 429,706 Other long-lived assets 15,085,774 Total non-current assets 533,853,687 Total assets of the discontinued operations 978,051,705 Liabilities Short-term borrowings from third parties 595,433,960 Notes payable - third parties 223,302,995 Advances from third parties 21,493,334 Amounts due to related parties 1,257,367 Other current liabilities 53,774,987 Income tax payable 221,397 Total current liabilities 895,484,040 Warranty 35,058,973 Deferred gain 20,824,155 Other long-term liabilities 865,964 Total non-current liabilities 56,749,092 Total liabilities 952,233,132 Net assets $ 25,818,573 Note: The intercompany receivables of US$ 173.4 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Financial Instruments Subject to Mandatory Redemption Disclosure | At December 31, 2016 2017 Accounts receivables from EPC services (billed) $ - $ 7,091,310 from EPC services (unbilled) - 1,835,203 from solar power project assets 8,919 7,124,003 from electricity revenue generation (1) 77,029 7,184,721 others - 76,849 Allowance for doubtful accounts - - Accounts receivable, net $ 85,948 $ 23,312,086 (1) Accounts receivables from electricity revenue generation includes the receivables from the sales of green certificates. |
PREPAID EXPENSE AND OTHER CUR35
PREPAID EXPENSE AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure | At December 31, 2016 2017 Refundable deposits (1) $ 1,821,545 $ 7,927,825 Prepaid rental fees (2) - 1,652,826 EPC Warranty reimbursement receivables - 132,007 Others 72,045 830,164 Total prepaid expenses and other current assets $ 1,893,590 $ 10,542,822 (1) As of December 31 2017, refundable deposits mainly represented refundable deposits for the bidding of the project asset construction rights. (2) As of December 31, 2017, prepaid rental fees mainly represented rooftop rental payments for solar systems for one year. |
PROJECT ASSETS AND DEFERRED P36
PROJECT ASSETS AND DEFERRED PROJECT COSTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
PROJECT ASSETS, CONTRACT COSTS AND DEFERRED PROJECT COSTS [Abstract] | |
Schedule of project assets and deferred project costs | At December 31, 2016 2017 Project assets - Module cost $ 6,822,294 $ 16,369,965 Project assets - Development 42,615,862 61,259,796 Project assets - Others 5,449,251 6,407,213 Total project assets 54,887,407 84,036,974 Current portion 48,177,416 76,556,400 Non-current portion 6,709,991 7,480,574 Total deferred project costs 16,374,899 17,957,041 Current portion - 17,957,041 Non-current portion 16,374,899 - Total project assets and deferred project costs $ 71,262,306 $ 101,994,015 |
PROPERTY, PLANT AND EQUIPMENT37
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
PROPERTY, PLANT AND EQUIPMENT, NET [Abstract] | |
Schedule of property, plant and equipment. net | Property, plant and equipment, net, comprise: At December 31, 2016 2017 Buildings $ 282,000 $ 282,000 Plant and machinery 4,873 1,097,710 Motor vehicles - 50,971 Office equipment 50,170 39,247 Power stations 23,170,604 125,753,462 Less: Accumulated depreciation (3,354,205) (8,388,858) 20,153,442 118,834,532 Construction in progress 5,147 35,824,545 Property, plant and equipment, net $ 20,158,589 $ 154,659,077 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INCOME TAXES [Abstract] | |
Schedule of Components of Tax Benefit (Expense) | Years ended December 31, 2015 2016 2017 Income (Loss) before income tax PRC $ - $ (69,465) $ 2,938,038 Other jurisdictions 20,190,079 296,039 583,861 Total 20,190,079 226,574 3,521,899 Current tax benefit (expense) PRC - - (11,926) Other jurisdictions (34,721) (283,829) (222,094) Subtotal (34,721) (283,829) (234,020) Deferred tax benefit (expense) - PRC - - 1,402 Other jurisdictions 57,912 151,737 (89,450) Subtotal 57,912 151,737 (88,048) Total income tax benefit (expense) $ 23,191 $ (132,092) $ (322,068) |
Schedule of Principal Components of Deferred Income Tax Assets and Liabilities | At December 31, 2016 2017 Deferred tax assets: Accrued expenses $ - $ 6,254 Tax losses 3,482,010 3,234,651 Others - 55,282 Total gross deferred tax assets 3,482,010 3,296,187 Valuation allowance on deferred tax assets (3,334,464) (3,236,889) Net deferred tax assets $ 147,546 $ 59,298 |
Schedule of Reconciliation Between the Applicable Statutory Income Tax Rate and the Company's Effective Tax Rate | Years ended December 31, 2015 2016 2017 PRC applicable income tax rate 25 % 25 % 25 % Valuation allowance 1 % 26 % (3) % Preferential tax rate - - (24) % Effect of different tax rate of subsidiaries (22) % 20 % (4) % Others (4) % (13) % (4) % Effective income tax rate 0 % 58 % (10) % |
Schedule of Aggregate Amount and Per Share Effect of the Tax Holiday | Year ended December 31, 2015 2016 2017 USD USD USD Preferential tax effect $ - $ - $ 845,010 Basic earnings per share from continuing operations effect -decrease - - - Diluted earnings per share from continuing operations effect -decrease $ - $ - $ - |
BORROWINGS AND OTHER FINANCIN39
BORROWINGS AND OTHER FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
BORROWINGS [Abstract] | |
Schedule of bank borrowings | At December 31, 2016 2017 Short-term $ - $ 6,605,894 Long-term 28,835,700 32,513,900 $ 28,835,700 $ 39,119,794 |
Schedule of Capital Leased Assets [Table Text Block] | As of December 31, 2017 Module, inverter and etc. $ 32,994,934 |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | USD Year ended December 31, 2018 $ 2,149,749 2019 6,071,530 2020 6,510,005 2021 6,670,450 2022 6,670,450 2023 and later 10,782,597 Total minimum lease payments 38,854,781 Less: Amount representing interest (9,555,982) Present value of net minimum lease payments 29,298,799 Current portion 369,046 Non-current portion $ 28,929,753 USD Year ended December 31, 2017 Non-current portion for Capital lease $ 28,929,753 Non-current portion for failed sale and lease back $ 38,575,716 Total failed sale-lease back and capital lease liabilities 67,505,469 |
Schedule of Maturities of Long-term Debt [Table Text Block] | 2018 $ - 2019 - 2020 $ 32,513,900 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER CURRENT LIABILITIES [Abstract] | |
Schedule of Other Current Liabilities | At December 31, 2016 2017 Payable for purchase of property, plant and equipment $ 2,051,958 $ 25,562,367 Payable for lease fee of rooftops - 2,117,606 Payables associated with failed sale-lease backcurrent portion - 1,638,904 Payables associated with capital lease current portion - 369,046 Other tax payables 59,837 229,361 Accrued EPC warranty liabilities - 132,007 Others (1) 6,238,160 464,944 $ 8,349,955 $ 30,514,235 (1) The others as of December 31, 2016 mainly included the payable for the development and construction of project assets. |
WARRANT LIBILITY (Tables)
WARRANT LIBILITY (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
WARRANT LIBILITY [Abstract] | |
Schedule of Assumptions Used to Estimate Fair Value of Warrants Using the Monte Carlo Simulation | As September 16, As December 31, 2015 2016 Stock price $ 8.50 $ 3.20 Exercise price $ 30.2 $ 30.2 Annual dividend yield - % - % Time to maturity 1.7 0.7 Risk-free interest rate 0.93 % 0.70 % Expected volatility 67.2 % 42.9 % |
SHARE BASED COMPENSATION (Table
SHARE BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SHARE BASED COMPENSATION [Abstract] | |
Schedule of assumptions used to estimate the fair value of the options | Average risk-free Weighted average Volatility rate Dividend Granted in 2015 1.36-1.76 % 3.2 years 140.01-146.02 % 0 % Granted in 2016 1.00-1.52 % 3.2 years 119.83-146.29 % 0 % Granted in 2017 1.93-2.00 % 3.2 years 103.04-109.89 % 0 % |
Summary of the option activity | Number of Weighted Weighted Aggregate Options Outstanding on January 1, 2015 7,401,800 0.74 2.00 - Granted 1,150,000 0.74 - - Exercised (843,000) 0.74 - - Forfeited (1,761,800) 0.74 - - Outstanding on December 31, 2015 5,947,000 0.74 2.14 685,055 Granted 825,000 0.74 - - Exercised - - - - Forfeited (687,000) 0.74 - - Outstanding on December 31, 2016 6,085,000 0.74 1.75 - Granted 1,550,000 0.64 3.50 - Exercised - - Forfeited (1,470,000) 0.74 - - Outstanding on December 31, 2017 6,165,000 0.71 1.64 - Vested or expected to vest at December 31, 2017 6,092,175 0.71 1.62 - Exercisable at December 31, 2017 3,785,000 0.74 0.73 - |
Schedule of summary of the RSUs | Number of Weighted RSUs Unvested on January 1, 2015 750,000 2.72 Vested (200,000) 2.72 Forfeited (412,500) 2.72 Unvested on December 31, 2015 137,500 1.36 Granted 280,000 0.63 Vested (137,500) 1.36 Unvested on December 31, 2016 280,000 0.63 Granted - - Vested (140,000) 0.63 Unvested on December 31, 2017 140,000 0.63 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
EARNINGS PER SHARE | |
Schedule of basic and diluted earnings per share | Basic earnings per share and diluted earnings per share have been calculated as follows: For the years ended December 31, 2015 2016 2017 Numerator: Net income from continuing operations $ 20,213,270 $ 94,482 $ 3,199,831 Net income/(loss) from discontinued operations (25,288,392) (34,792,733) 31,257,707 Total net income/(loss) (5,075,122) (34,698,251) 34,457,538 Net income from continuing operations 20,213,270 94,482 3,199,831 Dilutive effects of convertible notes and warrants - - - Numerator for diluted income per share for continuing operations 20,213,270 94,482 3,199,831 Numerator for diluted income/(loss) per share for discontinued operations (25,288,392) (34,792,733) 31,257,707 Denominator: Denominator for basic earnings per share - weighted average number of ordinary shares outstanding 204,085,041 202,229,767 246,899,286 Dilutive effects of share options, RSUs and warrants 137,500 174,137 6,003 Denominator for diluted calculation - weighted average number of ordinary shares outstanding 204,222,541 202,403,904 246,905,289 Continuing operations: Basic earnings per share from continuing operations 0.10 0.00 0.01 Diluted earnings per share from continuing operations 0.10 0.00 0.01 Discontinued operations Basic earnings/(loss) per share from discontinued operations (0.12) (0.17) 0.13 Diluted earnings/(loss) per share from discontinued operations (0.12) (0.17) 0.13 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following ordinary share equivalents were excluded from the computation of diluted net earnings/(loss) per share for the periods presented because including them would have been anti-dilutive: For the years ended December 31, 2015 2016 2017 Convertible notes 4,957,667 - - Warrants 10,500,000 10,500,000 - Share options 2,898,600 6,085,000 3,491,575 Total 18,356,267 16,585,000 3,491,575 |
RELATED PARTY BALANCES AND TR44
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
RELATED PARTY BALANCES AND TRANSACTIONS [Abstract] | |
Schedule of amounts due to related parties comprised of amounts payable to purchase of raw materials and others | Related party balances At December 31, 2016 2017 Due to ReneSola Singapore (1) $ - $ 60,370,065 |
Schedule of related party transactions | During the years ended December 31, 2015, 2016 and 2017, related party transactions with ReneSola Singapore Pte., Ltd and its subsidiaries were as follows: Years ended December 31, 2015 2016 2017 Purchase of modules from $ - $ - $ 33,238,377 Purchased services related to the construction of project assets - - 868,158 Borrowing from (2) - - 11,343,739 Lending to (3) $ - $ - $ (1,624,261) (1) After the disposal of the discontinued business in September 2017, ReneSola Singapore Pte., Ltd becomes the related party of the Company that both ReneSola Singapore and the Company are under common control of Mr. Li. The balances due to the entity and its subsidiaries were mainly modules, raw materials that the Company purchased from them. (2) It represented the borrowings under a loan agreement between the Company (“borrower”) and ReneSola Singapore (“the lender”). The lender grants to the borrower a loan in the principal amount of up to US$ 200 1 (3) It represented the loan borrowed by ReneSola Singapore’s subsidiaries bearing no interests. There is no fixed repayment schedule of this loan. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | (a) Operating lease commitments Year ended December 31, At December 31, 2018 $ 999,622 2019 1,093,799 2020 1,772,834 2021 1,073,805 2022 1,615,079 2023 and later 32,016,233 Total lease payments 38,571,372 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SEGMENT REPORTING [Abstract] | |
Schedule of the Company's revenues generated from each segment | The following table summarizes the Company’s revenues generated from each segment: Year ended December 31, 2015 Solar power project Electricity revenue Other Total Net revenue $ 110,737,934 $ 5,551,742 $ 41,260 $ 116,330,936 Gross profit $ 20,707,899 $ 2,308,921 $ 18,336 $ 23,035,156 Year ended December 31, 2016 Solar power project Electricity revenue Other Total Net revenue $ 77,372,737 $ 3,131,997 $ - $ 80,504,734 Gross profit $ 6,432,290 $ 800,591 $ - $ 7,232,881 Year ended December 31, 2017 Solar power project Electricity EPC Other Total Net revenue $ 64,837,042 $ 12,247,320 $ 25,853,288 $ 36,349 $ 102,973,999 Gross profit $ 3,575,775 $ 7,031,670 $ 3,524,310 $ - $ 14,131,755 |
Schedule of the Company's revenues generated by geographic location of customers | The following table summarizes the Company’s revenues generated by the geographic location of customers: Years ended December 31, 2015 2016 2017 China $ - $ - $ 67,533,887 America 41,260 - 18,323,947 Japan 5,719,672 9,175,391 - Bulgaria 3,083,823 652,559 - Romania 2,467,920 2,393,030 4,844,238 England 105,018,261 68,283,754 7,271,370 Turkey - - 4,995,648 France - - 4,909 Total $ 116,330,936 $ 80,504,734 $ 102,973,999 |
SUMMARY OF PRINCIPAL ACCOUNTI47
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Advances to Suppliers and Advances for Purchase of Property, Plant and Equipment and Intangible Assets) (Narrative) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Advances to suppliers-current | $ 379,792 | $ 4,220,864 |
Prepayments for property, plant and equipment, recorded in non-current assets | $ 0 | $ 416,201 |
SUMMARY OF PRINCIPAL ACCOUNTI48
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Schedule of Estimated Useful Lives of Property, Plant and Equipment Stated at Cost Less Accumulated Depreciation) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Buildings [Member] | Minimum [Member] | |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | |
Estimated useful lives | 40 years |
Buildings [Member] | Maximum [Member] | |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | |
Estimated useful lives | 50 years |
Plant and machinery [Member] | Minimum [Member] | |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | |
Estimated useful lives | 10 years |
Plant and machinery [Member] | Maximum [Member] | |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | |
Estimated useful lives | 25 years |
Motor vehicles [Member] | Minimum [Member] | |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | |
Estimated useful lives | 4 years |
Motor vehicles [Member] | Maximum [Member] | |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | |
Estimated useful lives | 5 years |
Office equipment [Member] | Minimum [Member] | |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | |
Estimated useful lives | 3 years |
Office equipment [Member] | Maximum [Member] | |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | |
Estimated useful lives | 5 years |
Power stations | |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | |
Estimated useful lives | 25 years |
SUMMARY OF PRINCIPAL ACCOUNTI49
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Assets retirement obligation, Prepaid Land Use Right and Impairment of Long-Lived Assets) (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Impairment of long-lived assets | |||
Impairment charge of long-lived assets | $ 0 | $ 0 | $ 0 |
SUMMARY OF PRINCIPAL ACCOUNTI50
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Convertible Senior Notes, Revenue Recognition, Deferred Project Revenue, Cost of Revenues, Warranty Costs and Government Grants) (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue recognition [Line Items] | |||
Amortization of deferred convertible notes issuance costs and premium | $ 0 | $ 32,935 | $ 764,527 |
Other Assets, Noncurrent | $ 3,425,098 | 3,250,754 | |
Percenatge of Total Selling Price of Power Projects | 50.00% | ||
Revenue from Grants | $ 4,184,724 | 1,708,163 | $ 1,534,297 |
Deferred project revenue | |||
Deferred project revenue | 0 | 32,242,995 | |
Solar power projects [Member] | |||
Deferred project revenue | |||
Deferred project revenue | $ 20,791,918 | $ 32,242,995 |
SUMMARY OF PRINCIPAL ACCOUNTI51
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Foreign Currency and Derivative Financial Instruments) (Narrative) (Details) | Dec. 31, 2017USD ($) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016USD ($) | Dec. 31, 2016CNY (¥) |
Foreign currency [Line Items] | ||||
Cash and cash equivalents, functional currency equivalent of foreign currency denominated amount | $ 2,017 | ¥ 19,626,332 | $ 20,791,918 | ¥ 14,629,660 |
SUMMARY OF PRINCIPAL ACCOUNTI52
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Earnings (Loss) Per Share and Treasury Stock) (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 23, 2015 | |
Treasury Stock | ||||
Treasury Stock, Shares, Retired | 1,451,700 | |||
Total cash consideration of shares repurchased | $ (1,493,352) | $ (812,184) | ||
Treasury stock [Member] | ||||
Treasury Stock | ||||
Treasury Stock, Shares, Retired | 1,451,700 | 1,352,586 | 1,614,776 | |
ADS repurchased | (2,804,286) | (1,614,776) | ||
Total cash consideration of shares repurchased | $ (1,493,352) | $ (812,184) | ||
American Depository Shares (ADS) [Member] | ||||
Treasury Stock | ||||
Maximum amount authorized to repurchase ADS | $ 20,000,000 | |||
Treasury Stock, Shares, Retired | 2,804,286 | 1,614,776 | ||
ADS repurchased | 280,429 | 161,477 |
DISCONTINUED OPERATIONS (Narrat
DISCONTINUED OPERATIONS (Narrative) (Details) shares in Millions, ¥ in Billions | 12 Months Ended | ||
Dec. 31, 2017USD ($)shares | Dec. 31, 2017CNY (¥) | Dec. 31, 2016USD ($) | |
Debt, Long-term and Short-term, Combined Amount | $ 39,119,794 | $ 28,835,700 | |
Waive of Payable to Discontinued Operations | $ 217,400,000 | ||
Stock Issued During Period, Shares, New Issues | shares | 180 | ||
Stock Issued During Period, Value, New Issues | $ 42,480,000 | ||
Intercompany Receivables Due from Continuing Business | 173,400,000 | ||
Manufacturing and LED Distribution Businesses [Member] | |||
Debt, Long-term and Short-term, Combined Amount | $ 461,000,000,000 | ¥ 3 | |
American Depositary Shares [Member] | |||
Stock Issued During Period, Shares, New Issues | shares | 18 |
DISCONTINUED OPERATIONS (Reconc
DISCONTINUED OPERATIONS (Reconciliation of disposal gain) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Waiver of the Company’s payable to the Buyer of the discontinued operations | $ 217,400,000 | ||
Fair value of shares issued to the Buyer | (42,500,000) | ||
Net assets of discontinued operations as of the disposal date | (133,600,000) | ||
Release of currency translation difference due to discontinued operations | (64,984,682) | $ 0 | $ 0 |
Disposal Gain | $ 106,292,213 | $ 0 | $ 0 |
DISCONTINUED OPERATIONS (Result
DISCONTINUED OPERATIONS (Results of the discontinued operations) (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | $ 472,568,586 | $ 849,331,555 | $ 1,165,700,510 | |
Cost of revenues | (457,058,538) | (747,068,354) | (1,000,861,822) | |
Gross Profit | 15,510,048 | 102,263,201 | 164,838,688 | |
Operating (expenses)/income: | ||||
Selling and marketing | (24,259,869) | (46,914,631) | (72,061,281) | |
General and administrative | (32,341,022) | (44,629,891) | (51,896,423) | |
Research and development | (14,715,027) | (27,286,652) | (43,905,312) | |
Other income | 8,776,633 | 3,771,645 | 16,009,232 | |
Impairment loss of assets | 0 | (4,624,979) | 0 | |
Total operating expenses | (62,539,285) | (119,684,508) | (151,853,784) | |
Income/(Loss) from operations | (47,029,237) | (17,421,307) | 12,984,904 | |
Interest income | 1,144,135 | 2,349,791 | 2,836,225 | |
Interest expenses | (25,518,288) | (32,097,477) | (41,418,331) | |
Exchange (loss)/gain | (7,095,061) | 9,945,642 | (935,402) | |
Gain/(losses) on derivatives | (1,284,379) | 4,592,125 | 1,941,019 | |
Loss from discontinued operations before income taxes | (79,782,830) | $ (79,782,830) | (32,631,226) | (24,591,585) |
Income tax (expense)/benefit, net | 4,748,324 | 4,748,324 | (2,161,507) | (696,807) |
Income (loss) from discontinued operations, net of tax | $ (75,034,506) | $ 31,257,707 | $ (34,792,733) | $ (25,288,392) |
DISCONTINUED OPERATIONS (Assets
DISCONTINUED OPERATIONS (Assets and liabilities of the discontinued operations) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 33,371,486 | |
Restricted cash | 95,861,139 | |
Accounts receivable, net of allowances for doubtful accounts | 72,732,734 | |
Notes receivable, net - third parties | 43,858,319 | |
Inventories | 143,975,999 | |
Advances to suppliers-current | 10,722,586 | |
Amounts due from related parties | 13,065,625 | |
Prepaid income tax | 1,020,676 | |
Prepayments and other current assets | 19,315,500 | |
Derivative assets | 2,715,736 | |
Assets held-for-sales | 7,558,218 | |
Total current assets | $ 0 | 444,198,018 |
Property, plant and equipment, net | 471,096,623 | |
Prepaid land rent, net | 31,850,188 | |
Deferred tax assets, non-current | 15,391,396 | |
Restricted cash - non current | 429,706 | |
Other long-lived assets | 15,085,774 | |
Total non-current assets | 0 | 533,853,687 |
Total assets of the discontinued operations | 978,051,705 | |
Short-term borrowings from third parties | 595,433,960 | |
Notes payable - third parties | 223,302,995 | |
Advances from third parties | 21,493,334 | |
Amounts due to related parties | 1,257,367 | |
Other current liabilities | 53,774,987 | |
Income tax payable | 221,397 | |
Total | 0 | 895,484,040 |
Warranty | 35,058,973 | |
Deferred gain | 20,824,155 | |
Other long-term liabilities | 865,964 | |
Total non-current liabilities | $ 0 | 56,749,092 |
Total liabilities | 952,233,132 | |
Net assets | $ 25,818,573 |
ACCOUNTS RECEIVABLE, NET (Detai
ACCOUNTS RECEIVABLE, NET (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts Receivable, Net, Current [Abstract] | |||
Allowance for doubtful accounts | $ 0 | $ 0 | |
Accounts receivable, net | 23,312,086 | 85,948 | |
Trade Accounts Receivable One [Member] | |||
Accounts Receivable, Net, Current [Abstract] | |||
Accounts Receivable, Gross, Current | 7,091,310 | 0 | |
Trade Accounts Receivable Two [Member] | |||
Accounts Receivable, Net, Current [Abstract] | |||
Accounts Receivable, Gross, Current | 1,835,203 | 0 | |
Trade Accounts Receivable Three [Member] | |||
Accounts Receivable, Net, Current [Abstract] | |||
Accounts Receivable, Gross, Current | 7,124,003 | 8,919 | |
Trade Accounts Receivable Fourth [Member] | |||
Accounts Receivable, Net, Current [Abstract] | |||
Accounts Receivable, Gross, Current | [1] | 7,184,721 | 77,029 |
Trade Accounts Receivable Fifth [Member] | |||
Accounts Receivable, Net, Current [Abstract] | |||
Accounts Receivable, Gross, Current | $ 76,849 | $ 0 | |
[1] | Accounts receivables from electricity revenue generation includes the receivables from the sales of green certificates. |
PREPAID EXPENSE AND OTHER CUR58
PREPAID EXPENSE AND OTHER CURRENT ASSETS (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | |
Refundable deposits | [1] | $ 7,927,825 | $ 1,821,545 |
Prepaid rental fees | [2] | 1,652,826 | 0 |
EPC Warranty reimbursement receivables | 132,007 | 0 | |
Others | 830,164 | 72,045 | |
Total prepaid expenses and other current assets | $ 10,542,822 | $ 1,893,590 | |
[1] | As of December 31 2017, refundable deposits mainly represented refundable deposits for the bidding of the project asset construction rights. | ||
[2] | As of December 31, 2017, prepaid rental fees mainly represented rooftop rental payments for solar systems for one year. |
PROJECT ASSETS AND DEFERRED P59
PROJECT ASSETS AND DEFERRED PROJECT COSTS (Schedule of Project Assets and Deferred Project Costs) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Project assets - Module cost | $ 16,369,965 | $ 6,822,294 |
Project assets - Development | 61,259,796 | 42,615,862 |
Project assets - Others | 6,407,213 | 5,449,251 |
Total project assets | 84,036,974 | 54,887,407 |
Current portion | 76,556,400 | 48,177,416 |
Non-current portion | 7,480,574 | 6,709,991 |
Total deferred project costs | 17,957,041 | 16,374,899 |
Current portion | 17,957,041 | 0 |
Non-current portion | 0 | 16,374,899 |
Total project assets, contract costs and deferred project costs | $ 101,994,015 | $ 71,262,306 |
PROPERTY, PLANT AND EQUIPMENT60
PROPERTY, PLANT AND EQUIPMENT, NET (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | |||
Property, plant and equipment, net | $ 154,659,077 | $ 20,158,589 | |
Depreciation expense | $ 4,475,823 | 2,400,522 | $ 3,548,898 |
Power station built for generating electricity business, portion included in Buildings, Plant and machinery [Member] | |||
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | |||
Property, plant and equipment, net | $ 23,200,000 |
PROPERTY, PLANT AND EQUIPMENT61
PROPERTY, PLANT AND EQUIPMENT, NET (Schedule of Property, Plant and Equipment Net) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | ||
Less: Accumulated depreciation | $ (8,388,858) | $ (3,354,205) |
Property, plant and equipment Before Construstruction | 118,834,532 | 20,153,442 |
Property, plant and equipment, net | 154,659,077 | 20,158,589 |
Buildings [Member] | ||
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | ||
Property, plant and equipment, gross | 282,000 | 282,000 |
Plant and machinery [Member] | ||
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | ||
Property, plant and equipment, gross | 1,097,710 | 4,873 |
Motor vehicles [Member] | ||
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | ||
Property, plant and equipment, gross | 50,971 | 0 |
Office equipment [Member] | ||
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | ||
Property, plant and equipment, gross | 39,247 | 50,170 |
Construction in progress [Member] | ||
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | ||
Property, plant and equipment, net | 35,824,545 | 5,147 |
Power stations [Member] | ||
PROPERTY, PLANT AND EQUIPMENT, NET [Line Items] | ||
Property, plant and equipment, gross | $ 125,753,462 | $ 23,170,604 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2008 | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015 | Dec. 31, 2017CNY (¥) | |
INCOME TAXES | |||||
Statutory income tax rate in PRC (as a percent) | 25.00% | 25.00% | 25.00% | ||
Deferred Tax Assets, Valuation Allowance | $ 3,236,889 | $ 3,334,464 | |||
Income Tax Holiday, Description | Pursuant to PRC tax laws, certain subsidiaries of the Company are solar power generation enterprises, which are entitled to a three-year tax exemption from CIT mainly beginning from 2017 that approved by governing tax authorities and a 50% CIT reduction for the succeeding three year thereafter. | ||||
CHINA | |||||
INCOME TAXES | |||||
Statutory income tax rate in PRC (as a percent) | 25.00% | ||||
California Franchise Tax Board [Member] | |||||
INCOME TAXES | |||||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 8.84% | ||||
Minimum [Member] | |||||
INCOME TAXES | |||||
Amount of underpayment of tax considered for applicability of extended period of statute of limitations Period | $ 15,060 | ¥ 100,000 | |||
Minimum [Member] | California Franchise Tax Board [Member] | |||||
INCOME TAXES | |||||
Statutory income tax rate in PRC (as a percent) | 15.00% | ||||
Maximum [Member] | California Franchise Tax Board [Member] | |||||
INCOME TAXES | |||||
Statutory income tax rate in PRC (as a percent) | 35.00% | ||||
PRC [Member] | |||||
INCOME TAXES | |||||
Net operating loss carryforwards | $ 2,017,109 | ||||
PRC [Member] | 2021 [Member] | |||||
INCOME TAXES | |||||
Net operating loss carryforwards | $ 284,543 |
INCOME TAXES (Schedule of Compo
INCOME TAXES (Schedule of Components of Tax Benefit (Expense) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income (Loss) before income tax | |||
PRC | $ 2,938,038 | $ (69,465) | $ 0 |
Other jurisdictions | 583,861 | 296,039 | 20,190,079 |
Income before income tax | 3,521,899 | 226,574 | 20,190,079 |
Current tax benefit (expense) | |||
PRC | (11,926) | 0 | |
Other jurisdictions | (222,094) | (283,829) | (34,721) |
Subtotal | (234,020) | (283,829) | (34,721) |
Deferred tax benefit (expense) | |||
PRC | 1,402 | 0 | 0 |
Other jurisdictions | (89,450) | 151,737 | 57,912 |
Subtotal | (88,048) | 151,737 | 57,912 |
Total income tax benefit (expense) | $ (322,068) | $ (132,092) | $ 23,191 |
INCOME TAXES (Schedule of Princ
INCOME TAXES (Schedule of Principal Components of Deferred Income Tax Assets and Liabilities) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Accrued expenses | $ 6,254 | $ 0 |
Tax losses | 3,234,651 | 3,482,010 |
Others | 55,282 | 0 |
Total gross deferred tax assets | 3,296,187 | 3,482,010 |
Valuation allowance on deferred tax assets | (3,236,889) | (3,334,464) |
Net deferred tax assets | $ 59,298 | $ 147,546 |
INCOME TAXES (Schedule of Recon
INCOME TAXES (Schedule of Reconciliation Between the Applicable Statutory Income Tax Rate and the Company's Effective Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation between the applicable statutory income tax rate and the Company's effective tax rate | |||
PRC applicable income tax rate (as a percent) | 25.00% | 25.00% | 25.00% |
Valuation allowance (as a percent) | (3.00%) | 26.00% | 1.00% |
Preferential tax rate | (24.00%) | 0.00% | 0.00% |
Effect of different tax rate of subsidiaries (as a percent) | (4.00%) | 20.00% | (22.00%) |
Others (as a percent) | (4.00%) | (13.00%) | (4.00%) |
Effective income tax rate (as a percent) | (10.00%) | 58.00% | 0.00% |
INCOME TAXES (Schedule of Aggre
INCOME TAXES (Schedule of Aggregate Amount and Per Share Effect of the Tax Holiday) (Details) - CHINA - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Aggregate amount and per share effect of the Tax Holiday | |||
Preferential tax effect | $ 845,010 | $ 0 | $ 0 |
Basic earnings per share from continuing operations effect -decrease | $ 0 | $ 0 | $ 0 |
Diluted earnings per share from continuing operations effect -decrease | $ 0 | $ 0 | $ 0 |
BORROWINGS AND OTHER FINANCIN67
BORROWINGS AND OTHER FINANCING ARRANGEMENTS (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
BORROWINGS [Line Items] | |||
Short-term | $ 6,605,894 | $ 0 | |
Short-term | |||
Weighted average interest rate (as a percent) | 6.00% | ||
Interest expense | |||
Interest Costs Incurred | $ 4,045,277 | ||
Interest Paid, Capitalized | 108,975 | ||
Sale Leaseback Transaction, Net Book Value | 33,753,639 | ||
Sale Leaseback Transaction, Gross Proceeds, Investing Activities | $ 39,535,563 | ||
Solar Project, Useful Life | 25 years | ||
Failed Sale Leaseback Transaction, Amount Due under Financing Arrangement, Noncurrent | $ 38,575,716 | ||
Capital Leases, Balance Sheet, Assets by Major Class, Net | 32,994,934 | ||
Failed Sale Leaseback Transaction, Amount Due under Financing Arrangement, Current | 1,638,904 | $ 0 | |
Interest Expense, Debt | 836,959 | ||
Capital Lease Obligations | $ 29,298,799 | ||
Sale Leaseback Transaction, Lease Terms | for 5 to 10 years | ||
Financings With Failed Sale-Lease Back Transactions [Member] | |||
Interest expense | |||
Failed Sale Leaseback Transaction, Amount Due under Financing Arrangement, Current | $ 1,638,904 | ||
Debt, Weighted Average Interest Rate | 6.07% | ||
Long-term [Member] | |||
Long-term | |||
Weighted average interest rate (as a percent) | 5.80% | 6.80% | 6.58% |
Secured debt [Member] | |||
BORROWINGS [Line Items] | |||
Short-term | $ 6,605,894 | ||
Secured borrowings | $ 32,513,900 |
BORROWINGS AND OTHER FINANCIN68
BORROWINGS AND OTHER FINANCING ARRANGEMENTS (Schedule of Bank Borrowings) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Short-term | $ 6,605,894 | $ 0 |
Long-term | 32,513,900 | 28,835,700 |
Total | $ 39,119,794 | $ 28,835,700 |
BORROWINGS AND OTHER FINANCIN69
BORROWINGS AND OTHER FINANCING ARRANGEMENTS (Schedule of long-term bank loans should be repaid) (Details) | Dec. 31, 2017USD ($) |
2,018 | $ 0 |
2,019 | 0 |
2,020 | $ 32,513,900 |
BORROWINGS AND OTHER FINANCIN70
BORROWINGS AND OTHER FINANCING ARRANGEMENTS (Schedule Of Capital lease Assets) (Details) | Dec. 31, 2017USD ($) |
Module, inverter and etc. | $ 32,994,934 |
BORROWINGS AND OTHER FINANCIN71
BORROWINGS AND OTHER FINANCING ARRANGEMENTS (Schedule Of Capital Lease Future Payments) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
2,018 | $ 2,149,749 | |
2,019 | 6,071,530 | |
2,020 | 6,510,005 | |
2,021 | 6,670,450 | |
2,022 | 6,670,450 | |
2023 and later | 10,782,597 | |
Total minimum lease payments | 38,854,781 | |
Less: Amount representing interest | (9,555,982) | |
Present value of net minimum lease payments | 29,298,799 | |
Current portion | 369,046 | $ 0 |
Non-current portion | 28,929,753 | |
Non-current portion for failed sale and lease back | 38,575,716 | |
Total failed sale-lease back and capital lease liabilities | $ 67,505,469 | $ 0 |
OTHER CURRENT LIABILITIES (Sche
OTHER CURRENT LIABILITIES (Schedule of Other Current Liabilities) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | |
Payable for purchase of property, plant and equipment | $ 25,562,367 | $ 2,051,958 | |
Payable for lease fee of rooftops | 2,117,606 | 0 | |
Payables associated with failed sale-lease back-current portion | 1,638,904 | 0 | |
Payables associated with capital lease -current portion | 369,046 | 0 | |
Other tax payables | 229,361 | 59,837 | |
Accrued EPC warranty liabilities | 132,007 | 0 | |
Others | [1] | 464,944 | 6,238,160 |
Other current liabilities | $ 30,514,235 | $ 8,349,955 | |
[1] | The others as of December 31, 2016 mainly included the payable for the development and construction of project assets. |
CONVERTIBLE SENIOR NOTES (Detai
CONVERTIBLE SENIOR NOTES (Details) | Apr. 07, 2011USD ($) | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2011USD ($) | Mar. 15, 2011USD ($) |
CONVERTIBLE SENIOR NOTES [Line Items] | ||||||
Cash used for repurchase of debt | $ 0 | $ 25,931,219 | $ 54,376,600 | |||
Net gain repurchase of debt | 0 | 212,056 | 13,693,269 | |||
Amortization of deferred convertible notes issuance costs and premium | $ 0 | 32,935 | 764,527 | |||
Convertible Senior Notes due 2018 [Member] | ||||||
CONVERTIBLE SENIOR NOTES [Line Items] | ||||||
Debt issued | $ 175,000,000 | |||||
Interest rate (as a percent) | 4.125% | |||||
Redemption price at the option of the holder as a percentage of principal amount together with any accrued but unpaid interest | 100.00% | |||||
Repurchase of debt | 26,145,000 | 68,454,000 | $ 88,384,000 | |||
Cash used for repurchase of debt | 25,931,219 | 54,376,600 | 57,055,127 | |||
Net gain repurchase of debt | 212,056 | 13,693,269 | 28,349,939 | |||
Maximum aggregate principal amount pertaining to exercise of over-allotment of debt by initial purchasers | $ 25,000,000 | $ 100 | ||||
Deferred issuance cost expensed | 1,725 | $ 384,131 | 2,978,934 | |||
Refund of portion of premium paid due to repurchase of debt | 861,280 | |||||
Amortization of deferred convertible notes issuance costs and premium | $ 32,935 | $ 764,527 | ||||
Debt Issuance Cost | $ 7,156,101 | |||||
Convertible Senior Notes due 2018 [Member] | American Depository Shares (ADS) [Member] | ||||||
CONVERTIBLE SENIOR NOTES [Line Items] | ||||||
Conversion price of debts (in pound sterling per share/in dollars per ADS) | $ / shares | $ 10.5473 | |||||
Number of shares to be allotted and issued on full conversion of debts (in shares/ADS) | 2,478,833 | |||||
Cap price (in dollars per ADS) | $ / shares | $ 15.0675 | |||||
Premium of preliminary option | $ 21,504,779 | |||||
Premium of over-allotment option | $ 3,197,500 |
WARRANT LIBILITY (Narrative) (D
WARRANT LIBILITY (Narrative) (Details) | Sep. 16, 2013USD ($)$ / sharesshares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
WARRANT LIBILITIES [Line Items] | ||||
Warrant liability recognized | $ 0 | $ 0 | ||
Gain from the change in fair value of the warrant liability | 0 | (577,500) | $ (1,312,500) | |
Warrant Liabilities Current | $ 0 | 0 | ||
Warrant [Member] | ||||
WARRANT LIBILITIES [Line Items] | ||||
Number of shares that can be purchased on exercise of warrants | shares | 10,500,000 | |||
Number of shares that can be purchased on exercise of warrants as a percentage of shares issued in public offering | 35.00% | |||
Number of ordinary shares per ADS | 30.2 | |||
Aggregate American Depository Shares (ADS) | shares | 1,050,000 | |||
Exercise price (in dollars per share) | $ / shares | $ 3.02 | |||
Warrant liability recognized | $ 12,547,500 | |||
Gain from the change in fair value of the warrant liability | $ 577,500 | $ 1,312,500 | ||
Warrant Liabilities Current | $ 12,547,500 |
WARRANT LIBILITY (Schedule of A
WARRANT LIBILITY (Schedule of Assumptions Used to Estimate Fair Value of Warrants Using the Monte Carlo Simulation) (Details) - Warrant [Member] - $ / shares | 1 Months Ended | 12 Months Ended |
Sep. 16, 2015 | Dec. 31, 2016 | |
Assumptions to estimate the fair value of warrants | ||
Stock price (in dollars per share) | $ 8.50 | $ 3.2 |
Exercise price (in dollars per share) | $ 30.2 | $ 30.2 |
Annual dividend yield (as a percent) | 0.00% | 0.00% |
Time to maturity | 1 year 8 months 12 days | 8 months 12 days |
Risk-free interest rate (as a percent) | 0.93% | 0.70% |
Expected volatility (as a percent) | 67.20% | 42.90% |
SHARE BASED COMPENSATION (Narra
SHARE BASED COMPENSATION (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2012 | |
Employee Stock Option [Member] | ||||
Additional disclosures [Abstract] | ||||
Compensation cost | $ 783,118 | $ 692,322 | $ 1,204,494 | |
Granted (in shares) | 1,550,000 | 825,000 | 1,150,000 | |
Granted (in dollars per share) | $ 0.64 | $ 0.74 | $ 0.74 | |
Options modification [Abstract] | ||||
Incremental compensation cost | $ 444,373 | |||
Unrecognized incremental compensation costs | $ 330,559 | |||
Additional disclosures [Abstract] | ||||
Weighted average fair value of options granted (in dollars per share) | $ 0.41 | $ 0.48 | $ 0.72 | |
Unrecognized compensation expense related to unvested share-based compensation arrangements | $ 1,146,076 | |||
Period for recognition of unrecognized compensation costs | 1 year 2 months 16 days | |||
Total intrinsic value of options exercised (in dollars) | $ 0 | $ 0 | ||
Restricted Share Units [Member] | ||||
Additional disclosures [Abstract] | ||||
Total fair value of shares vested (in dollars) | $ 39,760 | 85,940 | 144,000 | |
2007 Share Incentive Plan [Member] | ||||
Additional disclosures [Abstract] | ||||
Number of authorized shares | 7,500,000 | |||
2007 Share Incentive Plan [Member] | Restricted Share Units [Member] | ||||
Additional disclosures [Abstract] | ||||
Compensation cost | $ 87,500 | 54,658 | $ 323,000 | |
Additional disclosures [Abstract] | ||||
Unrecognized compensation expense related to unvested share-based compensation arrangements | $ 32,842 | $ 120,342 |
SHARE BASED COMPENSATION (Sched
SHARE BASED COMPENSATION (Schedule of Assumptions Used to Estimate the Fair Value of the Options) (Details) - Options [Member] | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Assumptions used to estimate fair value of the options [Abstract] | |||
Average risk-free rate of return, minimum (as a percent) | 1.93% | 1.00% | 1.36% |
Average risk-free rate of return, maximum (as a percent) | 2.00% | 1.52% | 1.76% |
Weighted average expected option life | 3 years 2 months 12 days | 3 years 2 months 12 days | 3 years 2 months 12 days |
Volatility rate, minimum (as a percent) | 103.04% | 119.83% | 140.01% |
Volatility rate, maximum (as a percent) | 109.89% | 146.29% | 146.02% |
Dividend yield (as a percent) | 0.00% | 0.00% | 0.00% |
SHARE BASED COMPENSATION (Summa
SHARE BASED COMPENSATION (Summary of the Option Activity) (Details) - Options [Member] - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of Options [Roll Forward] | ||||
Options outstanding at the beginning of the period (in shares) | 6,085,000 | 5,947,000 | 7,401,800 | |
Granted (in shares) | 1,550,000 | 825,000 | 1,150,000 | |
Exercised (in shares) | 0 | 0 | (843,000) | |
Forfeited (in shares) | (1,470,000) | (687,000) | (1,761,800) | |
Options outstanding at the end of the period (in shares) | 6,165,000 | 6,085,000 | 5,947,000 | 7,401,800 |
Vested or expected to vest at the end of the period (in shares) | 6,092,175 | |||
Exercisable at the end of the period (in shares) | 3,785,000 | |||
Weighted Average Exercise Prices [Abstract] | ||||
Options outstanding at the beginning of the period (in dollars per share) | $ 0.74 | $ 0.74 | $ 0.74 | |
Granted (in dollars per share) | 0.64 | 0.74 | 0.74 | |
Exercised (in dollars per share) | 0 | 0 | ||
Forfeited (in dollars per share) | 0.74 | 0.74 | 0.74 | |
Options outstanding at the end of the period (in dollars per share) | 0.71 | $ 0.74 | $ 0.74 | $ 0.74 |
Vested or expected to vest at the end of the period (in dollars per share) | 0.71 | |||
Exercised at the end of the period (in dollars per share) | $ 0.74 | |||
Weighted Average Remaining Contractual Life [Abstract] | ||||
Outstanding at the beginning of the period | 1 year 7 months 20 days | 1 year 9 months | 2 years 1 month 20 days | 2 years |
Granted | 3 years 6 months | 0 years | 0 years | |
Exercised | 0 years | 0 years | ||
Forfeited | 0 years | 0 years | 0 years | |
Outstanding at the end of the period | 1 year 7 months 20 days | 1 year 9 months | 2 years 1 month 20 days | 2 years |
Vested or expected to vest at the end of the period | 1 year 7 months 13 days | |||
Exercisable at the end of the period | 8 months 23 days | |||
Aggregate Intrinsic Value [Abstract] | ||||
Outstanding at the beginning of the period (in dollars) | $ 0 | $ 685,055 | ||
Granted (in dollars) | 0 | 0 | ||
Exercised (in dollars) | 0 | 0 | ||
Forfeited (in dollars) | 0 | 0 | 0 | |
Outstanding at the end of the period (in dollars) | 0 | $ 0 | $ 685,055 | |
Vested or expected to vest at the end of the period (in dollars) | ||||
Exercisable at the end of the period (in dollars) |
SHARE BASED COMPENSATION (Sum79
SHARE BASED COMPENSATION (Summary of the RSUs) (Details) - Restricted Share Units [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of shares | |||
Outstanding at the beginning of the period (in shares) | 280,000 | 137,500 | 750,000 |
Granted (in shares) | 0 | 280,000 | |
Vested (in shares) | (140,000) | (137,500) | (200,000) |
Forfeited (in shares) | (412,500) | ||
Outstanding at the end of the period (in shares) | 140,000 | 280,000 | 137,500 |
Weighted Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 0.63 | $ 1.36 | $ 2.72 |
Granted (in dollars per share) | 0 | 0.63 | |
Vested (in dollars per share) | 0.63 | 1.36 | 2.72 |
Forfeited (in dollars per share) | 2.72 | ||
Outstanding at the end of the period (in dollars per share) | $ 0.63 | $ 0.63 | $ 1.36 |
EMPLOYEE BENEFITS (Narrative) (
EMPLOYEE BENEFITS (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
EMPLOYEE BENEFITS [Line Items] | |||
Total contribution | $ 674,100 | $ 215,981 | $ 181,227 |
ReneSola Jiangsu [Member] | |||
EMPLOYEE BENEFITS [Line Items] | |||
Percentage of employer's contribution required by PRC law | 19.20% | ||
Renesola Shanghai Ltd [Member] | |||
EMPLOYEE BENEFITS [Line Items] | |||
Percentage of employer matching contribution of basic salaries | 20.00% | ||
Sichuan Bo Power Engineering Co., Ltd. [Member] | |||
EMPLOYEE BENEFITS [Line Items] | |||
Percentage of employer matching contribution of basic salaries | 19.00% | ||
Percentage of employer's contribution required by PRC law | 18.00% | ||
Zhejiang Yuhui Investment Co., Ltd. [Member] | |||
EMPLOYEE BENEFITS [Line Items] | |||
Percentage of employer matching contribution of basic salaries | 14.00% | ||
Percentage of employer's contribution required by PRC law | 22.00% |
DISTRIBUTION OF PROFIT_AND RE81
DISTRIBUTION OF PROFIT AND RESTRICTED NET ASSETS (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Appropriations to general reserve as a percentage of profit after tax, minimum | 10.00% | |
Restricted net assets of PRC subsidiaries | $ 16,000,000 | $ 9,266,177 |
Restricted Net Assets, Percent Of Net Assets | 17.50% | 14.00% |
EARNINGS PER SHARE (Schedule of
EARNINGS PER SHARE (Schedule of Basic and Diluted Earnings Per Share) (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | ||||
Net income from continuing operations | $ 3,199,831 | $ 94,482 | $ 20,213,270 | |
Net income/(loss) from discontinued operations | $ (75,034,506) | 31,257,707 | (34,792,733) | (25,288,392) |
Total net income/(loss) | 34,457,538 | (34,698,251) | (5,075,122) | |
Net income from continuing operations | 3,199,831 | 94,482 | 20,213,270 | |
Dilutive effects of convertible notes and warrants | 0 | 0 | 0 | |
Numerator for diluted income per share for continuing operations | 3,199,831 | 94,482 | 20,213,270 | |
Numerator for diluted income/(loss) per share for discontinued operations | $ 31,257,707 | $ (34,792,733) | $ (25,288,392) | |
Denominator: | ||||
Denominator for basic earnings per share - weighted average number of ordinary shares outstanding | 246,899,286 | 202,229,767 | 204,085,041 | |
Dilutive effects of share options, RSUs and warrants | 6,003 | 174,137 | 137,500 | |
Denominator for diluted calculation - weighted average number of ordinary shares outstanding | 246,905,289 | 202,403,904 | 204,222,541 | |
Continuing operations: | ||||
Basic earnings per share from continuing operations | $ 0.01 | $ 0 | $ 0.10 | |
Diluted earnings per share from continuing operations | 0.01 | 0 | 0.10 | |
Discontinued operations | ||||
Basic earnings/(loss) per share from discontinued operations | 0.13 | (0.17) | (0.12) | |
Diluted earnings/(loss) per share from discontinued operations | $ 0.13 | $ (0.17) | $ (0.12) |
EARNINGS PER SHARE (Schedules o
EARNINGS PER SHARE (Schedules of Computation of Diluted Net Earnings/(Loss) Per (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,491,575 | 16,585,000 | 18,356,267 |
Convertible notes [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 4,957,667 |
Warrants [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 10,500,000 | 10,500,000 |
Share options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,491,575 | 6,085,000 | 2,898,600 |
EARNINGS PER SHARE (Narrative)
EARNINGS PER SHARE (Narrative) (Details) - shares | Dec. 31, 2017 | Dec. 31, 2016 |
Anti-dilutive securities excluded from computation of earnings per share [Line Items] | ||
Number of shares issued to the share depository bank but are treated as escrowed shares | 348,100 | 488,100 |
RELATED PARTY BALANCES AND TR85
RELATED PARTY BALANCES AND TRANSACTIONS (Schedule of Amounts Due to Related Parties Comprised of Amounts Payable to Purchase of Raw Materials and Others) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | |
Amounts due to related parties | |||
Amounts payable to the purchase of raw materials and others | $ 60,370,065 | $ 0 | |
Rene Sola Singapore Pte Ltd [Member] | |||
Amounts due to related parties | |||
Amounts payable to the purchase of raw materials and others | [1] | $ 60,370,065 | $ 0 |
[1] | After the disposal of the discontinued business in September 2017, ReneSola Singapore Pte., Ltd becomes the related party of the Company that both ReneSola Singapore and the Company are under common control of Mr. Li. The balances due to the entity and its subsidiaries were mainly modules, raw materials that the Company purchased from them. |
RELATED PARTY BALANCES AND TR86
RELATED PARTY BALANCES AND TRANSACTIONS (Schedule of Related Party Transactions) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
RELATED PARTY BALANCES AND TRANSACTIONS [Line Items] | ||||
Lending to related parties | $ (1,624,261) | $ 0 | $ 0 | |
Rene Sola Singapore Pte Ltd [Member] | ||||
RELATED PARTY BALANCES AND TRANSACTIONS [Line Items] | ||||
Purchase of modules from | 33,238,377 | 0 | 0 | |
Purchased services related to the construction of project assets | 868,158 | 0 | 0 | |
Borrowing from | [1] | 11,343,739 | 0 | 0 |
Lending to related parties | [2] | $ (1,624,261) | $ 0 | $ 0 |
[1] | It represented the borrowings under a loan agreement between the Company (“borrower”) and ReneSola Singapore (“the lender”). The lender grants to the borrower a loan in the principal amount of up to US$ 200 million with annual interest rate of 1%. There is no fixed repayment schedule of this loan. | |||
[2] | It represented the loan borrowed by ReneSola Singapore’s subsidiaries bearing no interests. There is no fixed repayment schedule of this loan. |
RELATED PARTY BALANCES AND TR87
RELATED PARTY BALANCES AND TRANSACTIONS (Narrative) (Details) - Rene Sola Singapore Pte Ltd [Member] $ in Millions | Dec. 31, 2017USD ($) |
RELATED PARTY BALANCES AND TRANSACTIONS [Line Items] | |
Debt Instrument, Face Amount | $ 200 |
Debt Instrument, Interest Rate, Stated Percentage | 1.00% |
COMMITMENTS AND CONTINGENCIES88
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
COMMITMENTS AND CONTINGENCIES [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 100.00% |
Financings With Failed Sale-Lease Back Transactions [Member] | Zhejiang Yuhui Investment Co., Ltd. [Member] | |
COMMITMENTS AND CONTINGENCIES [Line Items] | |
Guarantor Obligations, Current Carrying Value | $ 26,755,960 |
Guarantor Obligations, Term | 5 |
COMMITMENTS AND CONTINGENCIES89
COMMITMENTS AND CONTINGENCIES (Operating lease commitments) (Details) | Dec. 31, 2017USD ($) |
Long-term Purchase Commitment [Line Items] | |
2,018 | $ 999,622 |
2,019 | 1,093,799 |
2,020 | 1,772,834 |
2,021 | 1,073,805 |
2,022 | 1,615,079 |
2023 and later | 32,016,233 |
Total lease payments | $ 38,571,372 |
SEGMENT REPORTING (Narrative) (
SEGMENT REPORTING (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Number of principal reportable business segments | 3 |
SEGMENT REPORTING (Schedule of
SEGMENT REPORTING (Schedule of the Company's Revenues Generated from Each Segment) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Company's revenues generated from each segment [Line Items] | |||
Net revenue | $ 102,973,999 | $ 80,504,734 | $ 116,330,936 |
Gross profit | 14,131,755 | 7,232,881 | 23,035,156 |
Other [Member] | |||
Company's revenues generated from each segment [Line Items] | |||
Net revenue | 36,349 | 0 | 41,260 |
Gross profit | 0 | 0 | 18,336 |
Solar power project development [Member] | |||
Company's revenues generated from each segment [Line Items] | |||
Net revenue | 64,837,042 | ||
Gross profit | 3,575,775 | ||
Solar power project development [Member] | Operating segment [Member] | |||
Company's revenues generated from each segment [Line Items] | |||
Net revenue | 77,372,737 | 110,737,934 | |
Gross profit | 6,432,290 | 20,707,899 | |
Electricity revenue generation [Member] | Operating segment [Member] | |||
Company's revenues generated from each segment [Line Items] | |||
Net revenue | 12,247,320 | 3,131,997 | 5,551,742 |
Gross profit | 7,031,670 | $ 800,591 | $ 2,308,921 |
EPC services [Member] | Operating segment [Member] | |||
Company's revenues generated from each segment [Line Items] | |||
Net revenue | 25,853,288 | ||
Gross profit | $ 3,524,310 |
SEGMENT REPORTING (Schedule o92
SEGMENT REPORTING (Schedule of the Company's Revenues Generated by Geographic Location of Customers) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | $ 102,973,999 | $ 80,504,734 | $ 116,330,936 |
CHINA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 67,533,887 | 0 | 0 |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 18,323,947 | 0 | 41,260 |
JAPAN | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 0 | 9,175,391 | 5,719,672 |
BULGARIA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 0 | 652,559 | 3,083,823 |
ROMANIA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 4,844,238 | 2,393,030 | 2,467,920 |
England [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 7,271,370 | 68,283,754 | 105,018,261 |
TURKEY | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | 4,995,648 | 0 | 0 |
FRANCE | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total | $ 4,909 | $ 0 | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Thousands, ¥ in Millions | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Apr. 30, 2018CNY (¥) | |
SUBSEQUENT EVENTS [Line Items] | |||
Percentage of Owenership to be Held After Cash Injection | 59.87% | 59.87% | |
Subsequent event [Member] | |||
SUBSEQUENT EVENTS [Line Items] | |||
Cash Consideration To Be Injected | $ 23,800 | ¥ 150 | |
Investment Agreement,Description | In addition, according to the agreement, if the net profit of Zhejiang Yuhui Investment for the first quarter of 2018 does not reach RMB10 million (US$1.6 million), the subsidiary has to pay cash to Zhejiang Yuhui Investment to compensate for the deficit. As of the issuance date of these financial statements, the investment has not completed. | ||
Subsequent event [Member] | Third Party [Member] | |||
SUBSEQUENT EVENTS [Line Items] | |||
Cash Consideration To Be Injected | $ 31,700 | ¥ 200 | |
Percentage of Owenership to be Held After Cash Injection | 40.13% | 40.13% | |
Subsequent event [Member] | Rene Sola Zhejiang Ltd [Member] | |||
SUBSEQUENT EVENTS [Line Items] | |||
Payments to Acquire Businesses, Gross | $ 10,750 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $ 10,740 |