Emeren : Q4 2023 Letter to Shareholder

March 28, 2024

Dear Shareholders,

We closed 2023 with $104.7 million revenue, 22.2% gross margin and a $9.3 million net loss. These results were below our full-year guidance primarily due to delays in closing the sales of six projects in U.S. and Europe, which are now expected to be pushed out to 2024. Our Q4 results were further impacted by several one-time items, including a $4.1 million adjustment to the earnout revenue at our 75 MW of projects in Poland as well as $5.0 million of write-offs of project cancellations and bad debt reserves.

Our projects continued to face delays due to a mix of rising interest rates affecting financing terms, utility-scale project delays stemming from transmission capacity challenges, and regulatory uncertainty in the U.S. and Europe. These challenges underscore the need for adaptability in our project financing strategies, the importance of early engagement with transmission and utility stakeholders, and close monitoring of regulatory developments in the U.S. and Europe. Despite these challenges, we are focused on executing our core solar project development strategy, diversifying our global footprint and advancing our position as a leading global renewable energy company.

Q4 highlights included:

• • We announced the sale of a 53.6 MWp solar project portfolio in Hungary to Kronospan / Douglas Renewables. The portfolio includes six projects at various development stages, with four already operational. This venture contributes significantly to Hungary's photovoltaic capacity and aligns with Emeren's mission to enhance solar energy infrastructure.

• • We acquired an 86 MWp solar portfolio in Spain, comprised of 13 utility-scale projects. These projects are expected to significantly contribute to our energy production capacity, powering thousands of households and enhancing our storage capabilities.

• • We achieved a significant milestone by selling a 703 MW battery energy storage system (BESS) project portfolio in Italy to Matrix Renewables under the Development Service Agreement (DSA), which, combined with the previous sale of a 260 MW in Q2, amounted to a total of 963 MW of BESS projects (the majority of the portfolio having an 8-hour duration) under the DSA structure with Matrix. This achievement marked a substantial advance towards the agreed portfolio target of 1.5 GW in the DSA partnership with Matrix.

• • We expanded our energy storage portfolio in China by acquiring a 10.8 MWh energy storage power portfolio. This acquisition, comprised of six energy storage power stations in Zhejiang Province, enhances Emeren's position in the Chinese energy storage market. We plan to generate returns through energy arbitrage and participation in Virtual Power Plant scenarios, leveraging the facilities connected to Huaneng Power International's VPP platform. This strategic move aligns with our global storage expansion and the growing VPP market in China.

We acknowledge the results over the past two years have been unsatisfactory and we fully accept responsibility for not meeting investor expectations. To address this,

• • We have been working under a Development Service Agreement (DSA) structure to recognize revenue and receive payments from early-stage projects in Italy in the past year and a half. This DSA model is now being implemented in more markets including several countries in Europe and the U.S. This strategic move allows us to capitalize more effectively on our early-stage project portfolio. Compared to the traditional model of revenue recognition and payment

collection at the Notice-to-Proceed, or NTP stage, a DSA enables us to better manage our returns and risks throughout the development process, optimize the timing of project completions, and bolster cash flow.

• • We also implemented strategic cost control initiatives throughout all our regions aimed at enhancing efficiency and optimizing resource allocation. These measures include workforce reductions, lean management policies, and halting certain greenfield developments to concentrate efforts and resources on advancing existing project portfolios. This shift aims to reduce overhead associated with new greenfield exploration and allocate personnel more effectively to projects with higher likelihood of success, improved profitability, and shorter development cycles.

• • In addition, in February 2024, we announced that our Board of Directors approved an accelerated stock repurchase (ASR) program of up to $10 million. This accelerated stock repurchase program underscores the Board's commitment to our shareholders and confidence in the company's future growth. With our expertise in solar project development, strong industry network, and solid balance sheet, we are making significant progress towards becoming an industry leading global solar and storage developer. Our strategic focus remains on maintaining a lean cost structure and achieving sustainable profitability, while monetizing our extensive advanced-stage project pipeline.

Looking Forward

Looking forward to 2024 and beyond, we remain well positioned in the world's fastest growing solar markets that are benefiting from increasing demand for clean energy and supportive government policies and technology trends.

The solar industry is experiencing strong tailwinds, driven by the global commitment to renewable energy and sustainability. Governments and corporations worldwide are setting ambitious targets for reducing carbon emissions, which in turn fuels significant demand for solar energy solutions.

One of the most exciting developments in the renewable energy sector is the booming demand for solar power to support artificial intelligence (AI) operations. As AI technologies become increasingly integrated into our daily lives and business operations, the substantial energy needed to power these advanced systems is evident. Solar energy and battery storage, with their scalability and decreasing cost profile, are becoming a reliable source of power for these high-tech applications, further driving demand in the sector. Moreover, we are witnessing a surge in overall electricity and storage demand. The electrification of transportation, the proliferation of electric vehicles (EVs), and the increasing need for energy storage solutions are amplifying this demand.

With strong demand for solar and energy storage projects globally, we entered 2024 with around 3.1 GW of high quality advanced-stage project pipeline. We anticipate monetizing approximately 400 MW to 450 MW in 2024. Furthermore, we accumulated approximately 5 GW with 4 to 8 hours duration in the planning, which equals 20 to 40 GWh of independent storage project pipeline at the end of 2023. We expect to begin accelerating monetization in 2024.

We expect 2024 full year revenue to be in the range of $150 million - $160 million. We expect gross margin to be approximately 30% and net income to be at least $26 million, or approximately $0.50 per ADS. We anticipate our 2024 IPP revenue to be between $24 million - $26 million and gross margin to be approximately 50%. We expect gross profit contributed by DSA globally to be at least $6 million. For the first half of 2024, we expect revenue to be in the range of $50 million - $55 million. We expectgross margin to be approximately 30%. Finally, we expect our operating cash flow to be positive throughout the full year of 2024 and cash balance to exceed $100 million at the end of 2024.

In conclusion, the future of solar energy is extremely promising, and we are positioned to fully capitalize on the accelerating adoption of solar technology across the globe. With our exceptional expertise in developing and operating solar projects, extensive network of industry partnerships, and strong financial position, we are making great strides towards our goal of becoming a top global solar company. We are thrilled about the bright future of solar energy and are excited to be at the forefront of this incredible transformation towards a more sustainable future. With that overview, we will now review the details of our fourth quarter and full year financial performance.

Full Year 2023 Financial Highlights:

• • Revenue increased 71% y/y to $104.7 million

• • Gross profit of $23.3 million up 52% y/y, with a gross margin of 22.2%

• • EBITDA was a negative $1.7 million, compared to $6.7 million in 2022

• • Net loss of $9.3 million, compared to $4.7 million net loss in 2022

$ in millions	2023	2022	Y/Y
Revenue	$104.7	$61.3	71%
Gross profit	23.3	15.3	52%
Operating loss	(8.1)	(2.6)	206%
EBITDA	(1.7)	6.7	-125%
Adjusted EBITDA	6.0	5.7	5%
Net loss attributed to Emeren Group Ltd	$(9.3)	$(4.7)	100%
Revenue by segment:
Segment	2023	% of Total
($ in thousands)	Revenue	Revenue
Project development	$24,945	24%
IPP	28,314	27%
EPC	44,096	42%
DSA	6,325	6%
Others	869	1%
Total	$104,670	100%
2023	% of Total
Revenue	Revenue
$89,748	86%
13,832	13%
1,090	1%
$104,670	100%

Region

Revenue by region:

($ in thousands)

Europe

China USA

Total

Q4 2023 Financial Highlights:

• • Revenue of $44.0 million up 215% q/q and 71% y/y

• • Gross margin of 7.6% lower than guidance range, due to more EPC projects and delays in closings of development projects sales in the U.S. and Europe

• • EBITDA was a negative $5.5 million, up from a negative $6.8 million in Q3 2023, and down from $2.1 million in Q4 2022

• • Net loss of $8.1 million, an improvement from a $9.4 million net loss in Q3 2023, and higher than a $1.7 million net loss in Q4 2022

$ in millions	Q4'23	Q3'23	Q/Q	Q4'22	Y/Y
Revenue	$44.0	$13.9	215%	$25.7	71%
Gross profit	3.3	5.7	-41%	6.0	-44%
Operating loss	(6.1)	(4.0)	55%	(1.2)	410%
EBITDA	(5.5)	(6.8)	19%	2.1	-362%
Adjusted EBITDA	(2.6)	(0.2)	N/M	0.2	N/M
Net loss attributed to Emeren Group Ltd	$(8.1)	$(9.4)	-14%	$(1.7)	372%

Revenue by segment:

Segment

($ in thousands)

Project development

IPP

EPC

DSA

Others

Total

Revenue by region:

Q4'23	% of Total
Revenue	Revenue
$8,429	19%
4,247	10%
25,507	58%
4,906	11%
911	2%
$44,000	100%
Region	Q4'23	% of Total
($ in thousands)	Revenue	Revenue
Europe	$41,330	94%
China	2,368	5%
USA	302	1%
Total	$44,000	100%

Advanced-Stage and Early-Stage Solar Development Project Pipeline

Project Pipeline by Region (as of December 31, 2023):

RegionAdvanced

Stage

Europe U.S. China Total

1,549 1,477 82 3,108

Project Pipeline by Country (as of December 31, 2023):

CountryAdvanced

StageEarly StageTotal (MW)

5,704 7,253

183 1,660

- 82

5,887

8,995

Early StageTotal (MW)

Poland Hungary

U.K.

Spain Germany

France

Italy

U.S.

China

483

52 - 52

110 - 110

216

125

92

471

1,477

Total

82 3,108

65 548

4,502 4,718

690 815

59 151

388 859

183 1,660

- 82

5,887

8,995

Advanced-Stage and Early-Stage Solar Storage Project Pipeline

Project Pipeline by Region (as of December 31, 2023):

RegionAdvanced

Stage

Europe U.S. China Total

4379 754 46 5,179

Early StageTotal (MW)

728 5,107

751 1,505

0 46

1,479

6,658

Project Pipeline by Country (as of December 31, 2023):

AdvancedCountry

StageEarly StageTotal (MW)

Poland Hungary

1,189 - 1,189

15 - 15

U.K.

345 - 345

Spain Germany

986 83 1,069

France

Italy

U.S.

China

Total

- - 1,844 754 46 5,179

- -

- -645 2,489

751 1,505

- 46

1,479

6,658

Note: The average hours per MW vary across regions. For example, in the U.S. and Europe, it ranged from 4 - 8 hours per MW of storage, while in China, it was ~2 hours.

Growing IPP Asset Portfolio in Attractive PPA Regions

As of December 31, we owned and operated IPP assets comprising 245 MW of solar PV projects and 15 MWh of storage.

Operating Assets	PV Capacity (MW)	Storage (MWh)
China DG	161	15
Europe	60	-
U.S.	24	-
Total	245	15

In 2023, we monetized approximately 144 MW solar projects, over 670 MW BESS projects under DSA, and an additional 15 MWh BESS as IPP assets in China.

Q4 2023 Financial Results:

All figures refer to the fourth quarter of 2023, unless stated otherwise.

Revenue

Revenue of $44.0 million increased 71% year-over-year from Q4 2022 and 215% sequentially from Q3 2023. Revenue was lower than our guidance primarily due to delays in closing the sales of 6 projects in the U.S. and Europe, which are now expected to close in the first half of 2024.

Gross Profit and Gross Margin

Gross profit was $3.3 million, compared to $5.7 million in Q3 2023 and $6.0 million in Q4 2022. Gross margin was 7.6%, compared to 40.8% in Q3 2023 and 23.3% in Q4 2022. The gross margin was lower than expected, primarily attributable to a higher mix of EPC project revenue, as well as the previously mentioned project delays.

Operating Expense

Operating expenses were $9.5 million, lower than $9.6 million in Q3 2023 and higher than $7.2 million in Q4 2022. Our Q4 operating expenses were impacted by $5.0 million of write-offs of project cancellations and bad debt reserves, partially offset by savings from our cost reduction initiatives.

Net loss attributable to Emeren Group Ltd's common shareholders

Net loss attributed to Emeren Group Ltd's common shareholders was $8.1 million, compared to net loss of $9.4 million in Q3 2023 and net loss of $1.7 million in Q4 2022. Diluted net loss attributable to Emeren Group Ltd's common shareholders per American Depositary Share ("ADS") was $0.15, compared to diluted net loss of $0.17 in Q3 2023 and diluted net loss of $0.03 in Q4 2022.

Cash Flow

Cash provided by operating activities was $2.9 million; cash provided by investing activities was $7.0 million, and cash used in financing activities was $4.9 million.

Financial Position

Cash and cash equivalents at the end of Q4 2023 were $70.2 million compared to $59.2 million in Q3 2023.

Net asset value (NAV) is approximately $5.91 per ADS.

Our debt-to-asset ratio at the end of Q4 2023 was 9.44% compared to 9.93% in Q3 2023.

Shares Buyback

We purchased approximately $3.4 million ADS during the quarter and plan to continue to execute on the share buyback program, which has approximately $7.6 million remaining in authorization.

In addition, in February 2024, we announced that our Board of Directors approved an accelerated stock repurchase (ASR) program of up to $10 million, of which we have repurchased approximately 2.8 million ADS as of March 27, 2024.

Conclusion

In conclusion, despite the increasing global uncertainty, we maintain our confidence in the long-term growth of the solar industry, driven by increasing demand for clean energy. Our confidence is further strengthened by major technology trends such as AI and the growing demand for EVs. Given our leading industry position, we are well positioned to benefit from our substantial solar development and storage pipeline. With our expertise in solar project development, strong industry network, and solid balance sheet, we are making significant progress towards becoming an industry leading global solar and storage developer. Our focus remains on delivering value to our shareholders.

We extend our heartfelt thanks to our committed employees, loyal customers, reliable partners, and supportive shareholders. Your steadfast dedication is pivotal to the success of Emeren Group Ltd, and together, we look forward to shaping a sustainable future.

Sincerely,

Yumin Liu

Ke Chen

Chief Executive Officer

Chief Financial Officer

Fourth Quarter 2023 Earnings Results Conference Call

We will host a conference call today to discuss our fourth quarter 2023 business and financial results. The call is scheduled to begin at 5:00 p.m. U.S. Eastern Time on Thursday, March 28, 2024.

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

Participant Online Registration:https://register.vevent.com/register/BI006cf469216c43419f5ffc940b960e45

Audio-only Webcast:https://edge.media-server.com/mmc/p/5egd3ok7

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

Safe Harbor Statement

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

For investor and media inquiries, please contact:

Emeren Group Ltd

Suzanne Wilson [phone]

[e-mail]

Emeren Group Ltd - Investor [e-mail]

The Blueshirt Group Gary Dvorchak [phone]

Appendix 1: Unaudited Consolidated Statement of Operations

Net revenues Cost of revenues

Gross profit

Operating (expenses)/income: Sales and marketing

General and administrative Other operating expenses

Total operating expenses

Income (loss) from operations

Other (expenses)/income: Interest (expenses)/income, net Investment income

Foreign exchange gains/(loss)

Total other income/(loss) , net

Income (loss) before income tax

$

Income tax benefit

Loss, net of tax

Less: Net income (loss) attributed to non-controlling interests Net Loss attributed to Emeren Group Ltd

Loss attributed to Emeren Group Ltd per ADS

Dec 31, 2023

44,000 (40,657)

3,343

(105)

(7,097) (2,287)

(9,489)

(6,146)

(244)

39 (1,390)

(1,595)

(7,741)

(2,116)

(9,857)

(1,769)

(8,088)

Basic Diluted

$ $

(0.15) (0.15)Weighted average number of ADS used in computing income/(loss) per ADS*Basic Diluted

55,197,797 55,197,797

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

Three Months EndedSep 30, 2023

Dec 31, 2022

Dec 31, 2023

(in thousands, except per ADS data and ADS)

$

13,948 (8,263) 5,685

(74) (6,964) (2,606)

(9,644)

(3,959)

(79)

57

(4,785)

(4,807)

(8,766)

(251)

(9,017)

373

(9,390)

$

25,667 (19,677)

5,990

(418)

(6,623)

(155)

(7,196)

(1,206)

(808)

46 1,217

455

(751)

(1,290)

(2,041)

(329)

(1,712)Twelve Months EndedDec 31, 2022

$

104,671 (81,387) 23,284

$

61,291 (45,955) 15,336

(398) (23,788) (7,160)

(421) (17,202)

(346)

(31,346) (17,969)

(8,062) (2,633)

(82) (2,509)

278 (1,346)

(1,150)

898 1,613 2

(9,212) (2,631)

(2,595) (1,917)

(11,807) (4,548)

(2,483)

124

(9,324) (4,672)

$ $

(0.17) (0.17)

$ $

(0.03) (0.03)

$ $

(0.16) $ (0.07)

(0.16) $ (0.07)

56,287,193 56,287,193

60,274,841 60,274,841

56,526,124 64,924,455

56,526,124 64,924,455