UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2023
Commission File Number: 001-33107
CANADIAN
SOLAR INC.
545 Speedvale Avenue West, Guelph,
Ontario, Canada N1K 1E6
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F x
Form 40-F ¨
CANADIAN SOLAR INC.
Form 6-K
TABLE OF CONTENTS
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
CANADIAN SOLAR INC. |
|
|
|
By: |
/s/ Shawn (Xiaohua) Qu |
|
Name: |
Shawn (Xiaohua) Qu |
|
Title: |
Chairman and Chief Executive Officer |
Date: August 22, 2023
EXHIBIT INDEX
Exhibit 99.1 — Second Quarter 2023 Earnings Release
Exhibit 99.1
Canadian
Solar Reports Second Quarter 2023 Results
Guelph, Ontario,
August 22, 2023 – Canadian Solar Inc. (“Canadian Solar” or the “Company”) (NASDAQ: CSIQ) today announced
financial results for the second quarter ended June 30, 2023.
Highlights
| · | Record
quarterly net income attributable to Canadian Solar of $170 million or $2.39 per diluted
share, compared to net income of $84 million, or $1.19 per diluted share, in the first quarter
of 2023, and net income of $74 million, or $1.07 per diluted share, in the second quarter
of 2022. |
| · | 62%
increase in solar module shipments year-over-year (“yoy”) to 8.2 GW, compared
to guidance of 8.1 GW to 8.4 GW. |
| · | 39%
increase in net revenues quarter-over-quarter (“qoq”) and 2% yoy to $2.4 billion,
compared to guidance of $2.4 billion to $2.6 billion. |
| · | 39%
increase in gross profit qoq and 19% yoy to $441 million, with an 18.6% gross margin, including
an inventory write-down, compared to guidance of 19% to 21%. |
| · | Gross
proceeds of approximately $975 million from the initial public offering (“IPO”)
of its majority-owned subsidiary CSI Solar Co., Ltd. (“CSI Solar”) on the Shanghai
Stock Exchange’s Sci-Tech Innovation Board under the stock code 688472. |
| · | 25
GWp of solar development pipeline and 52 GWh of battery energy storage development pipeline,
as of June 30, 2023 (Recurrent Energy, formerly Global Energy). |
Dr. Shawn Qu,
Chairman and CEO, commented, “We achieved strong results in the second quarter of 2023 delivering record net income of $170
million, or $2.39 per diluted share. We successfully completed the IPO of our CSI Solar subsidiary, raising approximately $975 million
in gross proceeds to support our ambitious growth plans across our solar and battery energy storage businesses. We also continued to
strengthen our competitive position in core markets such as the U.S., where we are making long-term investments and building a state-of-the-art
5 GW solar module manufacturing plant under the backdrop of the Inflation Reduction Act. We are proud to be embarking on these growth
initiatives with long-term partners such as EDF Renewables, working together to advance sustainable energy solutions to decarbonize the
grid. We also recently published our latest ESG Sustainability Report, providing comprehensive updates on our efforts to conduct business
ethically and sustainably.”
Yan Zhuang,
President of Canadian Solar’s CSI Solar subsidiary, said, “CSI Solar achieved strong results in the second quarter despite
the sharp decline in market prices. Raw material costs declined faster than anticipated and have now likely bottomed. This led to an
inventory write-down of raw materials during the second quarter, directly impacting our gross margin. However, this was more than offset
by operating leverage, resulting in strong operating income. Looking ahead, we expect to significantly optimize our cost structure as
we ramp up our internal cell and wafer capacity in the second half of the year and meaningfully improve on our capacity’s vertical
integration.
“In addition,
we made the strategic decision to rebrand our utility-scale turnkey battery energy storage business under our new e-STORAGE brand, which
we believe more clearly articulates our business. We continue to build momentum in this fast-growing business, with our e-STORAGE platform
now having a contracted backlog of $2.1 billion, including approximately $630 million in new bookings signed during the second quarter
of 2023. We are well positioned for growth and focused on further enhancing value for our customers, as we drive long-term profitable
growth in our key markets and segments.”
Ismael Guerrero,
CEO of Canadian Solar’s Recurrent Energy subsidiary, said, “We achieved significant revenue and profit growth in the
second quarter with the sale of our flagship 100 MWp Azuma Kofuji project in Japan. We continue to develop high-quality clean energy
assets and execute on our 25 GWp solar and 52 GWh battery energy storage development pipeline. Among these, we have over 2 GWp of pre-construction
solar projects with PPAs signed over the past three years and an additional 1.5 GWp under late-stage PPA negotiations where our secured
or advanced interconnection status gives us a leadership position and high visibility to complete these projects in the near term. This
is part of our strategy to execute and own more of the solar and battery energy storage projects we develop, thereby capturing greater
long-term value for our shareholders.”
Dr. Huifeng
Chang, Senior VP and CFO, added, “In the second quarter, we achieved $2.4 billion in revenue, a gross margin of 18.6%, and
net income of $2.39 per diluted share. We continued to prioritize cash generation with the increase in operating cash flow to $290 million.
Our total cash position reached $3.3 billion following the successful completion of the CSI Solar IPO. Our priority remains on deploying
capital productively, including strategic capacity expansion plans, as we drive long-term growth and build value for the Company and
shareholders.”
Second Quarter 2023 Results
Total module shipments
recognized as revenues in the second quarter of 2023 were 8.2 GW, up 62% yoy and 35% qoq. Of the
total, 41 MW were shipped to the Company’s own utility-scale solar power projects.
Net revenues in
the second quarter of 2023 increased 39% qoq and 2% yoy to $2.4 billion. The sequential increase reflects higher solar module shipment
volume and higher project sales, partially offset by a decline in module average selling price (“ASP”).
Gross profit in
the second quarter of 2023 was $441 million, up 39% qoq and 19% yoy. Gross margin in the second quarter of 2023 was 18.6%, compared to
18.7% in the first quarter of 2023. The gross margin decline was primarily due to the decline in module ASPs that adversely impacted
the broader industry, and a $31 million inventory write-down, both of which were impacted by the sharp decline in silicon material prices.
This was partially offset by lower manufacturing costs and a higher margin contribution from project sales.
Total operating
expenses in the second quarter of 2023 were $216 million, compared to $172 million in the first quarter of 2023 and $255 million in the
second quarter of 2022. The second quarter of 2023 included a $36 million share-based compensation expense related to the CSI Solar IPO.
Operating expenses increased at lower rates than the revenue growth rate qoq reflecting the Company’s operating leverage and a
further decline of unit logistics costs.
Depreciation and
amortization charges in the second quarter of 2023 were $73 million, compared to $68 million in the first quarter of 2023 and $63 million
in the second quarter of 2022. The sequential increase was primarily driven by the Company’s continued capacity expansion.
Net interest expense
in the second quarter of 2023 was $21 million, compared to $12 million in the first quarter of 2023 and $15 million in the second quarter
of 2022. The sequential and yoy increases reflect the Company’s increased total debt and the higher interest rate environment.
Net foreign exchange
and derivative gain in the second quarter of 2023 was $34 million, compared to a net loss of $13 million in the first quarter of 2023
and a net gain of $6 million in the second quarter of 2022. The net foreign exchange and derivative gain was mainly due to a weaker Renminbi
relative to the U.S. Dollar.
Net income attributable
to Canadian Solar in the second quarter of 2023 was $170 million, or $2.39 per diluted share, compared to net income of $84 million,
or $1.19 per diluted share, in the first quarter of 2023, and net income of $74 million, or $1.07 per diluted share, in the second quarter
of 2022.
Net cash flow provided
by operating activities in the second quarter of 2023 was $290 million, compared to $47 million in the first quarter of 2023. The qoq
increase in operating cash flow primarily resulted from higher profits, reduced inventories as a result of declined supply chain costs,
and changes in working capital.
Total debt was
$3.3 billion as of June 30, 2023, compared to $3.0 billion as of March 31, 2023, including $721 million and $831 million of debt related
to Recurrent Energy project assets as of June 30, 2023 and March 31, 2023, respectively. The qoq total debt increase was due to new borrowings
for capacity expansion and working capital, partially offset by the reduction of project financing upon project sales.
Total project assets
were $687 million, as of June 30, 2023, compared to $864 million as of March 31, 2023. Project assets are projects that are developed
and built for sale, as part of Recurrent Energy’s business model.
The net value of
solar power systems was $613 million, as of June 30, 2023, compared to $472 million, as of March 31, 2023. Solar power systems are projects
that are developed and built to be held on the Company’s balance sheet.
Corporate Structure
The Company has
two business segments: Recurrent Energy, formerly Global Energy, and CSI Solar. The two businesses operate as follows:
| · | Recurrent
Energy (formerly Global Energy) is one of the world’s largest clean energy project
development platforms with 14 years of experience, having delivered over 9 GWp of solar power
projects and over 3 GWh of battery storage projects. It is vertically integrated and has
strong expertise in greenfield origination, development, financing, execution, operations
and maintenance, and asset management. |
| · | CSI
Solar consists of solar module and battery storage manufacturing, and delivery of total
system solutions, including inverters, solar system kits and EPC (engineering, procurement,
and construction) services. CSI Solar’s e-STORAGE branded battery storage business
includes both its utility-scale turnkey battery system solutions, as well as a small but
growing residential battery storage business. These storage systems solutions are complemented
with long-term service agreements, including future battery capacity augmentation services.
|
Recurrent Energy
Segment (formerly Global Energy)
As of June 30,
2023, the Company had a leading position with a total global solar development pipeline of approximately 25 GWp and an energy storage
development pipeline of over 52 GWh.
While Recurrent
Energy’s business model was historically develop-to-sell, as previously communicated, the Company is in the process of adjusting
its strategy to create greater asset value and retain greater ownership of projects in select markets to increase revenues generated
through recurring income, such as power sales, operations and maintenance, and asset management income.
The business model
will consist of three key drivers:
| · | Operating
portfolio to drive stable, diversified cash flows in growth markets with stable currencies;
|
| · | Project
sales (or asset rotations) in the rest of the world to drive cash-efficient growth model
as value from project sales will help fund growth in operating assets in stable currency
markets; |
| · | Power
services through long-term operations and maintenance (“O&M”) contracts,
currently with 6 GW of contracted projects, to drive stable and long-term recurring earnings
and synergies with the project development platform. |
Recurrent Energy
is continuing to evaluate adjustments in its growth strategy to hold valuable solar assets for the longer term.
Project Development
Pipeline – Solar
As of June 30,
2023, Recurrent Energy’s total solar project development pipeline was 25.0 GWp, including 1.6 GWp under construction, 6.2 GWp of
backlog, and 17.2 GWp of projects in advanced and early-stage pipelines, defined as follows:
| · | Backlog
projects are late-stage projects that have passed their risk cliff date and are expected
to start construction in the next 1-4 years. A project’s risk cliff date is the date
on which the project passes the last high-risk development stage and varies depending on
the country where it is located. This is usually after the projects have received all the
required environmental and regulatory approvals, and entered into interconnection agreements,
feed-in tariff (“FIT”) arrangements and power purchase agreements (“PPAs”).
A significant majority of projects in backlog are contracted (i.e., have secured a PPA or
FIT), and the remaining are reasonably assured of securing PPAs. |
| · | Advanced
pipeline projects are mid-stage projects that have secured or have more than 90% certainty
of securing an interconnection agreement. |
| · | Early-stage
pipeline projects are early-stage projects controlled by Recurrent Energy that are in
the process of securing interconnection. |
The following table
presents Recurrent Energy’s total solar project development pipeline.
| |
Solar
Project Development Pipeline (as of June 30, 2023) – MWp* | |
Region | |
In
Construction | | |
Backlog | | |
Advanced
Pipeline | | |
Early-Stage
Pipeline | | |
Total | |
North
America | |
| - | | |
| 422 | | |
| 1,642 | | |
| 4,559 | | |
| 6,623 | |
Latin
America | |
| 1,228** | | |
| 2,272** | | |
| 887 | | |
| 451 | | |
| 4,838 | |
Europe,
the Middle East, and Africa (“EMEA”) | |
| 89 | | |
| 1,596 | | |
| 2,770 | | |
| 3,499 | | |
| 7,954 | |
Japan | |
| 4 | | |
| 170 | | |
| 14 | | |
| - | | |
| 188 | |
China | |
| 300 | | |
| 1,745** | | |
| - | | |
| 1,500 | | |
| 3,545 | |
Asia
Pacific excluding Japan and China | |
| - | | |
| 3 | | |
| 1,001 | | |
| 837 | | |
| 1,841 | |
Total | |
| 1,621 | | |
| 6,208 | | |
| 6,314 | | |
| 10,846 | | |
| 24,989 | |
*All
numbers are gross MWp.
**Including
671 MWp in construction and 711 MWp in backlog that are owned by or already sold to third parties.
Project Development
Pipeline – Battery Energy Storage
As of June 30,
2023, Recurrent Energy’s total battery storage project development pipeline was 51.7 GWh, including 1.7 GWh under construction
and in backlog, and 50.0 GWh of projects in advanced and early-stage pipelines.
The table below
sets forth Recurrent Energy’s total storage project development pipeline.
Energy
Storage Project Development Pipeline (as of June 30, 2023) – MWh |
Region | |
In
Construction | | |
Backlog | | |
Advanced
Pipeline | | |
Early-Stage
Pipeline | | |
Total | |
North
America | |
| - | | |
| - | | |
| 3,898 | | |
| 14,747 | | |
| 18,645 | |
Latin
America | |
| - | | |
| 1,085 | | |
| 2,040 | | |
| - | | |
| 3,125 | |
EMEA | |
| - | | |
| 110 | | |
| 4,418 | | |
| 14,769 | | |
| 19,297 | |
Japan | |
| - | | |
| - | | |
| - | | |
| 1,054 | | |
| 1,054 | |
China | |
| - | | |
| - | | |
| - | | |
| 7,500 | | |
| 7,500 | |
Asia
Pacific excluding Japan and China | |
| 24 | | |
| 454 | | |
| 200 | | |
| 1,440 | | |
| 2,118 | |
Total | |
| 24 | | |
| 1,649 | | |
| 10,556 | | |
| 39,510 | | |
| 51,739 | |
Projects
in Operation – Solar and Battery Energy Storage Power Plants
As of June 30,
2023, Recurrent Energy’s solar power plants in operation totaled 681 MWp, with a combined estimated net resale value of approximately
$570 million to Recurrent Energy. The estimated net resale value is based on selling prices that Recurrent Energy is currently negotiating
or comparable asset sales.
Solar
Power Plants in Operation – MWp* |
Latin
America |
|
Japan |
|
|
China |
|
|
|
Asia
Pacific
ex. Japan and China |
|
|
|
Total |
508 |
|
|
76 |
|
|
85 |
|
|
|
12 |
|
|
|
681 |
*All numbers
are net MWp owned by Recurrent Energy; total gross MWp of projects is 1,135 MWp, including volume that is already sold to third parties.
As of June 30,
2023, Recurrent Energy’s energy storage power plants in operation totaled 580 MWh, comprising Recurrent Energy’s 20% interest
in the 1,400 MWh Crimson standalone battery energy storage project in California and 100% interest in the 300 MWh Minle battery energy
storage project in China.
Operating
Results
The following table
presents select unaudited results of operations data of the Recurrent Energy segment for the periods indicated.
Recurrent
Energy Segment Financial Results
(In Thousands of U.S. Dollars, Except Percentages) |
|
|
Three
Months Ended |
|
|
Six
Months Ended |
|
|
|
June
30,
2023 |
|
|
March
31,
2023 |
|
|
June
30,
2022 |
|
|
June
30,
2023 |
|
|
June
30,
2022 |
|
Net revenues |
|
|
360,045 |
|
|
|
20,052 |
|
|
|
553,984 |
|
|
|
380,097 |
|
|
|
646,950 |
|
Cost of revenues |
|
|
201,981 |
|
|
|
12,843 |
|
|
|
473,979 |
|
|
|
214,824 |
|
|
|
549,109 |
|
Gross profit |
|
|
158,064 |
|
|
|
7,209 |
|
|
|
80,005 |
|
|
|
165,273 |
|
|
|
97,841 |
|
Operating expenses |
|
|
35,874 |
|
|
|
22,414 |
|
|
|
24,326 |
|
|
|
58,288 |
|
|
|
43,173 |
|
Income (loss) from operations* |
|
|
122,190 |
|
|
|
(15,205 |
) |
|
|
55,679 |
|
|
|
106,985 |
|
|
|
54,668 |
|
Gross margin |
|
|
43.9 |
% |
|
|
36.0 |
% |
|
|
14.4 |
% |
|
|
43.5 |
% |
|
|
15.1 |
% |
Operating margin |
|
|
33.9 |
% |
|
|
-75.8 |
% |
|
|
10.1 |
% |
|
|
28.1 |
% |
|
|
8.5 |
% |
*
Income (loss) from operations reflects management’s allocation and estimate as some services are shared by the Company’s
two business segments.
CSI Solar Segment
Solar Modules
CSI Solar shipped
8.2 GW of solar modules to more than 70 countries in the second quarter of 2023. For the second quarter of 2023, the top five markets
ranked by shipments were China, Brazil, the U.S., Spain, and Germany.
CSI Solar’s
2024 solar capacity expansion targets are set forth below.
| | |
Solar
Manufacturing Capacity, GW* | |
| | |
June
2023 Actual | | |
December
2023 Plan | | |
March
2024 Plan | | |
December
2024 Plan | |
Ingot | | |
| 20.4 | | |
| 20.4 | | |
| 20.4 | | |
| 50.4 | |
Wafer | | |
| 21.0 | | |
| 21.0 | | |
| 30.0 | | |
| 60.0 | |
Cell | | |
| 26.0 | | |
| 50.0 | | |
| 54.0 | | |
| 70.0 | |
Module | | |
| 37.7 | | |
| 50.0 | | |
| 59.0 | | |
| 80.0 | |
*Nameplate annualized
capacities at said point in time. Capacity expansion plans are subject to change without notice based on market conditions and capital
allocation plans.
Battery Storage
Solutions
e-STORAGE, formerly
known as CSI Energy Storage, is CSI Solar’s utility-scale battery energy storage subsidiary and platform. e-STORAGE provides customers
with competitive turnkey, integrated, utility-scale battery storage solutions, including bankable, end-to-end, utility-scale, turnkey
battery storage system solutions across various applications. System performance is complemented with long-term service agreements, which
include future battery capacity augmentation services and bring in long-term, stable income.
As of June 30,
2023, e-STORAGE had a total project turnkey pipeline of 26 GWh, which includes both contracted and in-construction projects, as well
as projects at different stages of the negotiation process. In addition, e-STORAGE had 2.4 GWh of operating battery storage projects
contracted under long-term service agreements, all of which were battery energy storage projects previously executed by e-STORAGE.
During the second
quarter of 2023, e-STORAGE signed approximately $630 million in new bookings, including long-term service agreements. As of June 30,
2023, the contracted backlog, including contracted long-term service agreements, was $2.1 billion. These are signed orders with contractual
obligations with customers and provide significant earnings visibility over a multi-year period.
The table below
sets forth e-Storage’s battery storage manufacturing capacity expansion targets.
Battery Storage
Manufacturing Capacity, GWh* | |
June
2023 Actual | | |
December
2023 Plan | |
SolBank | |
| 2.5 | | |
| 10.0 | |
*Nameplate annualized
capacities at said point in time. Capacity expansion plans are subject to change without notice based on market conditions and capital
allocation plans.
Operating
Results
The following table
presents select unaudited results of operations data of the CSI Solar segment for the periods indicated.
CSI
Solar Segment Financial Results* (In Thousands of U.S. Dollars, Except Percentages) |
|
|
|
Three
Months Ended |
|
|
Six
Months Ended |
|
|
|
June
30,
2023 |
|
|
March
31,
2023 |
|
|
June
30,
2022 |
|
|
June
30,
2023 |
|
|
June
30,
2022 |
|
Net revenues |
|
|
2,013,993 |
|
|
|
1,709,730 |
|
|
|
1,816,410 |
|
|
|
3,723,723 |
|
|
|
3,026,404 |
|
Cost of revenues |
|
|
1,726,154 |
|
|
|
1,394,121 |
|
|
|
1,526,755 |
|
|
|
3,120,275 |
|
|
|
2,560,920 |
|
Gross profit |
|
|
287,839 |
|
|
|
315,609 |
|
|
|
289,655 |
|
|
|
603,448 |
|
|
|
465,484 |
|
Operating expenses |
|
|
168,455 |
|
|
|
146,151 |
|
|
|
227,262 |
|
|
|
314,606 |
|
|
|
371,193 |
|
Income from operations |
|
|
119,384 |
|
|
|
169,458 |
|
|
|
62,393 |
|
|
|
288,842 |
|
|
|
94,291 |
|
Gross margin |
|
|
14.3 |
% |
|
|
18.5 |
% |
|
|
15.9 |
% |
|
|
16.2 |
% |
|
|
15.4 |
% |
Operating margin |
|
|
5.9 |
% |
|
|
9.9 |
% |
|
|
3.4 |
% |
|
|
7.8 |
% |
|
|
3.1 |
% |
*Include
effects of both sales to third-party customers and to the Company’s Recurrent Energy segment. Please refer to the attached financial
tables for intercompany transaction elimination information. Income from operations reflects management’s allocation and estimate
as some services are shared by the Company’s two business segments.
The table below
provides the geographic distribution of the net revenues of CSI Solar:
CSI
Solar Net Revenues Geographic Distribution* (In Millions of U.S. Dollars, Except Percentages) |
| |
Q2
2023 | | |
%
of Net
Revenues | | |
Q1
2023 | | |
%
of Net
Revenues | | |
Q2
2022 | | |
%
of Net
Revenues | |
Asia | |
| 722 | | |
| 36 | | |
| 555 | | |
| 33 | | |
| 587 | | |
| 33 | |
Americas | |
| 716 | | |
| 36 | | |
| 632 | | |
| 38 | | |
| 742 | | |
| 42 | |
Europe
and others | |
| 566 | | |
| 28 | | |
| 494 | | |
| 29 | | |
| 431 | | |
| 25 | |
Total | |
| 2,004 | | |
| 100 | | |
| 1,681 | | |
| 100 | | |
| 1,760 | | |
| 100 | |
*Excludes sales
from CSI Solar to Recurrent Energy.
Business Outlook
The Company’s
business outlook is based on management’s current views and estimates given factors such as existing market conditions, order book,
production capacity, input material prices, foreign exchange fluctuations, the anticipated timing of project sales, and the global economic
environment. This outlook is subject to uncertainty with respect to, among other things, customer demand, project construction and sale
schedules, product sales prices and costs, supply chain constraints, and geopolitical conflicts. Management’s views and estimates
are subject to change without notice.
For the third quarter
of 2023, the Company expects total revenue to be in the range of $1.9 billion to $2.1 billion. Gross margin is expected to be between
17.5% and 19.5%. Total module shipments recognized as revenues by CSI Solar are expected to be in the range of 8.5 GW to 8.7 GW, including
approximately 30 MW to the Company’s own projects.
For the full year
of 2023, the Company reiterates its prior outlook for CSI Solar’s total module shipments to be in the range of 30 GW to 35 GW.
CSI Solar’s battery storage shipments are expected to be in the range of 1.8 GWh to 2.0 GWh. The Company’s total revenue
is expected to be in the range of $8.5 billion to $9.0 billion.
Dr. Shawn Qu,
Chairman and CEO, commented, “We expect margins to rebalance through the year as we restrict the production of non-vertically
integrated solar module shipments while strengthening our leadership position in premium markets and segments. While competition remains
intense, the successful IPO of our CSI Solar subsidiary, strong balance sheet and brand solidly position us to achieve profitable growth,
as we continue making long-term investments that create lasting value for shareholders.”
Recent Developments
On July 31, 2023,
Canadian Solar released its 2022 Sustainability Report, which highlights the Company’s progress toward advancing its sustainability
strategy from an environmental, social, and governance (ESG) perspective. The sustainability disclosures in this report are aligned with
global standards set by the TCFD (Task Force on Climate-Related Disclosures), SASB (the Sustainability Accounting Standards Board)
and GRI (Global Reporting Initiative).
Recurrent Energy (formerly Global
Energy)
On August 16, 2023,
Canadian Solar announced its wholly-owned subsidiary Recurrent Energy secured a 20-year tolling agreement with Arizona Public Service
Company (“APS”) for the 1,200 MWh Papago energy storage project under development in Maricopa County, Arizona. Construction
of the project is expected to begin in the third quarter of 2024, and the project is expected to reach commercial operation in the second
quarter of 2025. Canadian Solar’s majority-owned subsidiary e-Storage will deliver its SolBank battery energy storage system and
provide the full integration and commissioning services for the project.
On June 26, 2023,
Canadian Solar announced its wholly-owned subsidiary Recurrent Energy secured a EUR150 million multicurrency facility with Santander
Corporate & Investment Banking. The facility will support Recurrent Energy’s growth and strategy to retain greater asset ownership
in selected markets.
On May 31, 2023,
Canadian Solar announced its wholly owned subsidiary Recurrent Energy completed the sale of its flagship 100 MWp Azuma Kofuji solar mega-project
located in Fukushima prefecture to Japanese investors arranged by Mizuho Securities Co., Ltd. Canadian Solar recognized the revenue from
the transaction in the second quarter of 2023. Recurrent Energy’s local subsidiary will continue to provide long term operations
and maintenance service for the plant after the transaction.
CSI Solar
Canadian Solar
announced its majority-owned subsidiary CSI Solar completed its IPO and its shares started trading on the Shanghai Stock Exchange’s
Sci-Tech Innovation Board on June 9, 2023 under the stock code 688472. In the IPO, CSI Solar issued 541,058,824 shares, representing
15% of the 3,607,058,824 shares outstanding immediately after the IPO. CSI Solar issued an additional 81,158,500 shares at the IPO price
of RMB11.10 per share to cover over-allotments. As a result, CSI Solar raised an aggregate of RMB6.9 billion (approximately US$975
million) in gross proceeds from the IPO. After deducting the offering expenses of RMB278 million, the net proceeds from the IPO
were RMB6.6 billion (approximately US$925 million). CSI Solar issued a total of 622,217,324 shares, representing approximately
17% of the 3,688,217,324 shares outstanding after the IPO. Following the exercise of the over-allotment option, Canadian Solar owns
approximately 62% of CSI Solar.
On August 17, 2023,
Canadian Solar announced e-STORAGE, which is part of its majority-owned subsidiary CSI Solar, will deliver 1,200 MWh of energy storage
solutions to the Company’s wholly-owned subsidiary Recurrent Energy Papago energy storage project in Arizona. Construction of the
project is expected to begin in the third quarter of 2024, with commercial operation expected in the second quarter of 2025. The project
will utilize e-STORAGE’s SolBank products and e-STORAGE will provide O&M services and a performance guarantee under a 20-year
long-term service agreement.
On August 9, 2023,
Canadian Solar announced the signing of a multi-year module supply agreement with EDF Renewables North America to deliver up to 7 GW
of high-efficiency N-type TOPCon solar modules, which will be produced at Canadian Solar’s new factory in Mesquite, Texas. Under
the agreement, Canadian Solar will supply its TOPCon solar modules to support EDF Renewables’ project pipeline in the U.S. between
2024 and 2030.
On July 19, 2023,
Canadian Solar announced its majority-owned subsidiary CSI Solar entered into a multi-year investment agreement with the municipal government
of Hohhot, in Inner Mongolia, China, to invest in 20 GW of ingot, 40 GW of crucible, 10 GW of wafer, 10 GW of cell, 5 GW of module and
5 GW of ancillary products manufacturing capacities as the initial phase of the agreement. The ingot capacity is expected to commence
production in March 2024, and the remaining capacities are expected to start production in the second half of 2024. Total capital expenditures
for the initial phase of this investment are expected to be around RMB11.5 billion (approximately US$1.6 billion), most of which will
occur in 2024.
On July 10, 2023,
Canadian Solar and its majority-owned subsidiary CSI Solar announced the rebranding of e-STORAGE, CSI Solar’s utility-scale battery
energy storage subsidiary and platform. Through e-STORAGE, Canadian Solar will accelerate its growth in the global energy storage
market by operating e-STORAGE as a distinct business unit under CSI Solar. e-STORAGE launches with nearly 26 GWh of energy storage
projects in its total pipeline and over $1.7 billion of contracted revenues as of July 2023, up from $1 billion in January
2023. Previously, e-STORAGE operated under the name CSI Energy Storage.
On June 15, 2023,
Canadian Solar announced the establishment of a solar PV module production facility in Mesquite, Texas. The plant will have an annual
output of 5 GW, with an investment of over $250 million. The plant will create approximately 1,500 skilled jobs once it is fully ramped
up. Production is expected to begin near the end of 2023.
On June 8, 2023,
Canadian Solar announced its majority-owned subsidiary CSI Solar entered into an agreement with Unibal, a joint venture between Union
Group and Capbal Limited, to deliver battery storage systems for two projects totaling 40 MWh in the United Kingdom. The projects
are expected to reach commercial operation in the first quarter of 2024.
On May 22, 2023,
Canadian Solar announced its majority-owned subsidiary CSI Solar entered into an agreement to deliver 49.5MW/99MWh of turnkey battery
energy storage solutions to Cero Generation and Enso Energy for their 49.5MW/99MWh battery energy storage co-located with the Larks
Green solar PV project in South Gloucestershire, United Kingdom. CSI Solar will also provide full commissioning and integration
services for the projects, in addition to long-term operations and maintenance, warranties and performance guarantees. The projects covered
by the agreement are expected to reach commercial operation in late 2024.
Conference Call
Information
The Company will
hold a conference call on Tuesday, August 22, 2023, at 8:00 a.m. U.S. Eastern Daylight Time (8:00 p.m., Tuesday, August 22, 2023, in
Hong Kong) to discuss its second quarter 2023 results and business outlook. The dial-in phone number for the live audio call is +1-877-704-4453
(toll-free from the U.S.), 800-965-561 (toll-free from Hong Kong), 400-120-2840 (local dial-in from Mainland China) or +1-201-389-0920
from international locations. The conference ID is 13740376. A live webcast of the conference call will also be available on the investor
relations section of Canadian Solar’s website at www.canadiansolar.com.
A replay of the
call will be available 2 hours after the conclusion of the call until 11:00 p.m. U.S. Eastern Daylight Time on Tuesday, September 5,
2023 (11:00 a.m., September 6, 2023, in Hong Kong) and can be accessed by +1-844-512-2921 (toll-free from the U.S.), or +1-412-317-6671
from international locations. The replay pin number is 13740376. A webcast replay will also be available on the investor relations section
of Canadian Solar’s website at www.canadiansolar.com.
About Canadian
Solar Inc.
Canadian Solar
was founded in 2001 in Canada and is one of the world’s largest solar technology and renewable energy companies. It is a leading
manufacturer of solar photovoltaic modules, provider of solar energy and battery storage solutions, and developer of utility-scale solar
power and battery storage projects with a geographically diversified pipeline in various stages of development. Over the past 22 years,
Canadian Solar has successfully delivered over 102 GW of premium-quality, solar photovoltaic modules to customers across the world. Likewise,
since entering the project development business in 2010, Canadian Solar has developed, built, and connected over 9 GWp of solar power
projects and over 3 GWh of battery storage projects across the world. Currently, the Company has approximately 700 MWp of solar power
projects in operation, 8 GWp of projects under construction or in backlog (late-stage), and an additional 17 GWp of projects in advanced
and early-stage pipeline. In addition, the Company has a total battery storage project development pipeline of 52 GWh, including approximately
2 GWh under construction or in backlog, and an additional 50 GWh at advanced and early-stage development. Canadian Solar is one of the
most bankable companies in the solar and renewable energy industry, having been publicly listed on the NASDAQ since 2006. For additional
information about the Company, follow Canadian Solar on LinkedIn or visit www.canadiansolar.com.
Safe Harbor/Forward-Looking Statements
Certain statements
in this press release, including those regarding the Company’s expected future shipment volumes, revenues, gross margins, and project
sales are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially.
These statements are made under the “Safe Harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995.
In some cases, you can identify forward-looking statements by such terms as “believes,” “expects,” “anticipates,”
“intends,” “estimates,” the negative of these terms, or other comparable terminology. Factors that could cause
actual results to differ include general business, regulatory and economic conditions and the state of the solar and battery storage
market and industry; geopolitical tensions and conflicts, including impasses, sanctions and export controls; volatility, uncertainty,
delays and disruptions related to the COVID-19 pandemic; supply chain disruptions; governmental support for the deployment of solar power;
future available supplies of high-purity silicon; demand for end-use products by consumers and inventory levels of such products in the
supply chain; changes in demand from significant customers; changes in demand from major markets such as Japan, the U.S., China, Brazil
and Europe; changes in effective tax rates; changes in customer order patterns; changes in product mix; changes in corporate responsibility,
especially environmental, social and governance (“ESG”) requirements; capacity utilization; level of competition; pricing
pressure and declines in or failure to timely adjust average selling prices; delays in new product introduction; delays in utility-scale
project approval process; delays in utility-scale project construction; delays in the completion of project sales; continued success
in technological innovations and delivery of products with the features that customers demand; shortage in supply of materials or capacity
requirements; availability of financing; exchange and inflation rate fluctuations; litigation and other risks as described in the Company’s
filings with the Securities and Exchange Commission, including its annual report on Form 20-F filed on April 18, 2023. Although the Company
believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level
of activity, performance, or achievements. Investors should not place undue reliance on these forward-looking statements. All information
provided in this press release is as of today’s date, unless otherwise stated, and Canadian Solar undertakes no duty to update
such information, except as required under applicable law.
FINANCIAL TABLES
FOLLOW
The following tables provide unaudited
select financial data for the Company’s CSI Solar and Recurrent Energy businesses.
| |
Select Financial
Data – CSI Solar and Recurrent Energy | |
| |
Three
Months Ended and As of June 30, 2023 (In
Thousands of U.S. Dollars, Except Percentages) | |
| |
CSI
Solar | | |
Recurrent
Energy | | |
Elimination
and
unallocated
items (1) | | |
Total | |
Net
revenues | |
$ | 2,013,993 | | |
$ | 360,045 | | |
$ | (10,015 | ) | |
$ | 2,364,023 | |
Cost of revenues | |
| 1,726,154 | | |
| 201,981 | | |
| (4,686 | ) | |
| 1,923,449 | |
Gross profit | |
| 287,839 | | |
| 158,064 | | |
| (5,329 | ) | |
| 440,574 | |
Gross margin | |
| 14.3 | % | |
| 43.9 | % | |
| — | | |
| 18.6 | % |
Income
from operations (2) | |
$ | 119,384 | | |
$ | 122,190 | | |
$ | (17,451 | ) | |
$ | 224,123 | |
| |
| | | |
| | | |
| | | |
| | |
Supplementary
Information: | |
| | | |
| | | |
| | | |
| | |
Interest
expense (3) | |
$ | (15,833 | ) | |
$ | (12,824 | ) | |
$ | (1,798 | ) | |
$ | (30,455 | ) |
Interest
income (3) | |
| 7,550 | | |
| 1,905 | | |
| 1 | | |
| 9,456 | |
| |
| | | |
| | | |
| | | |
| | |
Cash
and cash equivalents | |
$ | 1,607,189 | | |
$ | 395,417 | | |
$ | 8,819 | | |
$ | 2,011,425 | |
Restricted
cash – current and noncurrent | |
| 1,227,340 | | |
| 11,374 | | |
| — | | |
| 1,238,714 | |
Non-recourse
borrowings | |
| — | | |
| 296,668 | | |
| — | | |
| 296,668 | |
Other
short-term and long-term borrowings | |
| 1,735,482 | | |
| 881,059 | | |
| — | | |
| 2,616,541 | |
| |
Select Financial
Data – CSI Solar and Recurrent Energy | |
| |
Six
Months Ended June 30, 2023 (In
Thousands of U.S. Dollars, Except Percentages) | |
| |
CSI
Solar | | |
Recurrent Energy | | |
Elimination
and
unallocated
items (1) | | |
Total | |
Net
revenues | |
$ | 3,723,723 | | |
$ | 380,097 | | |
$ | (38,516 | ) | |
$ | 4,065,304 | |
Cost of revenues | |
| 3,120,275 | | |
| 214,824 | | |
| (28,370 | ) | |
| 3,306,729 | |
Gross profit | |
| 603,448 | | |
| 165,273 | | |
| (10,146 | ) | |
| 758,575 | |
Gross margin | |
| 16.2 | % | |
| 43.5 | % | |
| — | | |
| 18.7 | % |
Income
from operations (2) | |
$ | 288,842 | | |
$ | 106,985 | | |
$ | (26,100 | ) | |
$ | 369,727 | |
| |
| | | |
| | | |
| | | |
| | |
Supplementary
Information: | |
| | | |
| | | |
| | | |
| | |
Interest
expense (3) | |
$ | (29,421 | ) | |
$ | (17,889 | ) | |
$ | (3,593 | ) | |
$ | (50,903 | ) |
Interest
income (3) | |
| 14,027 | | |
| 3,357 | | |
| 28 | | |
| 17,412 | |
| |
Select Financial
Data – CSI Solar and Recurrent Energy | |
| |
Three
Months Ended and As of June 30, 2022 (In Thousands of U.S. Dollars, Except Percentages) | |
| |
CSI
Solar | | |
Recurrent Energy | | |
Elimination
and
unallocated
items (1) | | |
Total | |
Net
revenues | |
$ | 1,816,410 | | |
$ | 553,984 | | |
$ | (56,208 | ) | |
$ | 2,314,186 | |
Cost of revenues | |
| 1,526,755 | | |
| 473,979 | | |
| (57,598 | ) | |
| 1,943,136 | |
Gross profit | |
| 289,655 | | |
| 80,005 | | |
| 1,390 | | |
| 371,050 | |
Gross margin | |
| 15.9 | % | |
| 14.4 | % | |
| — | | |
| 16.0 | % |
Income
from operations (2) | |
$ | 62,393 | | |
$ | 55,679 | | |
$ | (1,955 | ) | |
$ | 116,117 | |
| |
| | | |
| | | |
| | | |
| | |
Supplementary
Information: | |
| | | |
| | | |
| | | |
| | |
Interest
expense (3) | |
$ | (12,415 | ) | |
$ | (5,507 | ) | |
$ | (1,787 | ) | |
$ | (19,709 | ) |
Interest
income (3) | |
| 3,955 | | |
| 261 | | |
| — | | |
| 4,216 | |
| |
| | | |
| | | |
| | | |
| | |
Cash
and cash equivalents | |
$ | 606,252 | | |
$ | 420,118 | | |
$ | 27,197 | | |
$ | 1,053,567 | |
Restricted
cash – current and noncurrent | |
| 889,745 | | |
| 5,042 | | |
| — | | |
| 894,787 | |
Non-recourse
borrowings | |
| 36,595 | | |
| 263,586 | | |
| — | | |
| 300,181 | |
Other
short-term and long-term borrowings | |
| 1,348,771 | | |
| 652,747 | | |
| — | | |
| 2,001,518 | |
| |
Select Financial
Data – CSI Solar and Recurrent Energy | |
| |
Six
Months Ended June 30, 2022 (In Thousands of U.S. Dollars, Except Percentages) | |
| |
CSI
Solar | | |
Recurrent Energy | | |
Elimination
and
unallocated
items (1) | | |
Total | |
Net
revenues | |
$ | 3,026,404 | | |
$ | 646,950 | | |
$ | (108,819 | ) | |
$ | 3,564,535 | |
Cost of revenues | |
| 2,560,920 | | |
| 549,109 | | |
| (97,435 | ) | |
| 3,012,594 | |
Gross profit | |
| 465,484 | | |
| 97,841 | | |
| (11,384 | ) | |
| 551,941 | |
Gross margin | |
| 15.4 | % | |
| 15.1 | % | |
| — | | |
| 15.5 | % |
Income
from operations (2) | |
$ | 94,291 | | |
$ | 54,668 | | |
$ | (17,327 | ) | |
$ | 131,632 | |
| |
| | | |
| | | |
| | | |
| | |
Supplementary
Information: | |
| | | |
| | | |
| | | |
| | |
Interest
expense (3) | |
$ | (24,405 | ) | |
$ | (7,036 | ) | |
$ | (3,570 | ) | |
$ | (35,011 | ) |
Interest
income (3) | |
| 6,857 | | |
| 1,571 | | |
| — | | |
| 8,428 | |
(1)
Includes inter-segment elimination, and unallocated corporate costs not considered part of management’s evaluation of business
segment operating performance.
(2)
Income from operations reflects management’s allocation and estimate as some services are shared by the Company’s two business
segments.
(3)
Represents interest expenses payable to and interest income earned from third parties.
| |
Select
Financial Data - CSI Solar and Recurrent Energy | |
| |
Three
Months
Ended June
30, 2023 | | |
Three
Months
Ended March
31, 2023 | | |
Three
Months
Ended June
30, 2022 | |
| |
| | |
| | |
| |
| |
(In Thousands
of U.S. Dollars) | |
CSI Solar Revenues: | |
| | | |
| | | |
| | |
Solar
modules | |
$ | 1,722,687 | | |
$ | 1,454,876 | | |
$ | 1,350,495 | |
Solar system
kits | |
| 216,867 | | |
| 133,587 | | |
| 150,765 | |
Utility-scale
battery storage | |
| 13,438 | | |
| 9,815 | | |
| 227,438 | |
Residential
battery storage | |
| 1,451 | | |
| 4,995 | | |
| — | |
EPC
and others | |
| 49,535 | | |
| 77,956 | | |
| 31,504 | |
Subtotal | |
| 2,003,978 | | |
| 1,681,229 | | |
| 1,760,202 | |
Recurrent Energy Revenues: | |
| | | |
| | | |
| | |
Solar and
battery storage projects | |
| 338,487 | | |
| 4,621 | | |
| 540,056 | |
O&M
and asset management services | |
| 13,408 | | |
| 8,687 | | |
| 7,745 | |
Electricity
sales and others | |
| 8,150 | | |
| 6,744 | | |
| 6,183 | |
Subtotal | |
| 360,045 | | |
| 20,052 | | |
| 553,984 | |
Total
net revenues | |
$ | 2,364,023 | | |
$ | 1,701,281 | | |
$ | 2,314,186 | |
| |
Select
Financial Data - CSI Solar and Recurrent Energy | |
| |
Six
Months Ended June
30, 2023 | | |
Six
Months Ended June
30, 2022 | |
| |
| | |
| |
| |
(In Thousands
of U.S. Dollars) | |
CSI Solar Revenues: | |
| | | |
| | |
Solar
modules | |
$ | 3,177,563 | | |
$ | 2,313,540 | |
Solar system
kits | |
| 350,454 | | |
| 241,221 | |
Utility-scale
battery storage | |
| 23,253 | | |
| 309,938 | |
Residential
battery storage | |
| 6,446 | | |
| — | |
EPC
and others | |
| 127,491 | | |
| 52,886 | |
Subtotal | |
| 3,685,207 | | |
| 2,917,585 | |
Recurrent Energy Revenues: | |
| | | |
| | |
Solar and
battery storage projects | |
| 343,108 | | |
| 618,448 | |
O&M
and asset management services | |
| 22,095 | | |
| 15,693 | |
Electricity
sales and others | |
| 14,894 | | |
| 12,809 | |
Subtotal | |
| 380,097 | | |
| 646,950 | |
Total
net revenues | |
$ | 4,065,304 | | |
$ | 3,564,535 | |
Canadian
Solar Inc.
Unaudited
Condensed Consolidated Statements of Operations
(In
Thousands of U.S. Dollars, Except Share and Per Share Data)
| |
Three
Months Ended | | |
Six
Months Ended | |
| |
June 30, | | |
March 31, | | |
June 30, | | |
June 30, | | |
June 30, | |
| |
2023 | | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
Net revenues | |
$ | 2,364,023 | | |
$ | 1,701,281 | | |
$ | 2,314,186 | | |
$ | 4,065,304 | | |
$ | 3,564,535 | |
Cost of revenues | |
| 1,923,449 | | |
| 1,383,280 | | |
| 1,943,136 | | |
| 3,306,729 | | |
| 3,012,594 | |
Gross
profit | |
| 440,574 | | |
| 318,001 | | |
| 371,050 | | |
| 758,575 | | |
| 551,941 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Operating expenses: | |
| | | |
| | | |
| | | |
| | | |
| | |
Selling
and distribution expenses | |
| 87,686 | | |
| 88,371 | | |
| 158,017 | | |
| 176,057 | | |
| 266,862 | |
General
and administrative expenses | |
| 139,571 | | |
| 78,648 | | |
| 87,920 | | |
| 218,219 | | |
| 150,730 | |
Research
and development expenses | |
| 23,137 | | |
| 17,307 | | |
| 18,050 | | |
| 40,444 | | |
| 31,330 | |
Other
operating income, net | |
| (33,943 | ) | |
| (11,929 | ) | |
| (9,054 | ) | |
| (45,872 | ) | |
| (28,613 | ) |
Total
operating expenses | |
| 216,451 | | |
| 172,397 | | |
| 254,933 | | |
| 388,848 | | |
| 420,309 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Income
from operations | |
| 224,123 | | |
| 145,604 | | |
| 116,117 | | |
| 369,727 | | |
| 131,632 | |
Other income (expenses): | |
| | | |
| | | |
| | | |
| | | |
| | |
Interest
expense | |
| (30,455 | ) | |
| (20,448 | ) | |
| (19,709 | ) | |
| (50,903 | ) | |
| (35,011 | ) |
Interest
income | |
| 9,456 | | |
| 7,956 | | |
| 4,216 | | |
| 17,412 | | |
| 8,428 | |
Gain
(loss) on change in fair value of derivatives, net | |
| (23,775 | ) | |
| 7,601 | | |
| (4,869 | ) | |
| (16,174 | ) | |
| (29,607 | ) |
Foreign
exchange gain (loss), net | |
| 57,532 | | |
| (20,860 | ) | |
| 11,333 | | |
| 36,672 | | |
| 39,195 | |
Investment
income, net | |
| 1,955 | | |
| 8,380 | | |
| 6,984 | | |
| 10,335 | | |
| 1,460 | |
Total
other income (expenses) | |
| 14,713 | | |
| (17,371 | ) | |
| (2,045 | ) | |
| (2,658 | ) | |
| (15,535 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Income before income taxes
and equity in earnings of affiliates | |
| 238,836 | | |
| 128,233 | | |
| 114,072 | | |
| 367,069 | | |
| 116,097 | |
Income tax expense | |
| (46,019 | ) | |
| (28,715 | ) | |
| (27,731 | ) | |
| (74,734 | ) | |
| (22,548 | ) |
Equity
in earnings of affiliates | |
| 4,719 | | |
| 7,311 | | |
| 2,214 | | |
| 12,030 | | |
| 3,940 | |
Net income | |
| 197,536 | | |
| 106,829 | | |
| 88,555 | | |
| 304,365 | | |
| 97,489 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Less:
Net income attributable to non-controlling interests | |
| 27,566 | | |
| 23,117 | | |
| 14,093 | | |
| 50,683 | | |
| 13,820 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Net
income attributable to Canadian Solar Inc. | |
$ | 169,970 | | |
$ | 83,712 | | |
$ | 74,462 | | |
$ | 253,682 | | |
$ | 83,669 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Earnings per share - basic | |
$ | 2.62 | | |
$ | 1.30 | | |
$ | 1.16 | | |
$ | 3.92 | | |
$ | 1.30 | |
Shares used in computation -
basic | |
| 64,912,928 | | |
| 64,517,935 | | |
| 64,262,556 | | |
| 64,716,522 | | |
| 64,146,383 | |
Earnings per share - diluted | |
$ | 2.39 | | |
$ | 1.19 | | |
$ | 1.07 | | |
$ | 3.58 | | |
$ | 1.21 | |
Shares used in computation -
diluted | |
| 71,689,925 | | |
| 71,424,749 | | |
| 71,103,568 | | |
| 71,571,041 | | |
| 71,067,215 | |
Canadian
Solar Inc.
Unaudited
Condensed Consolidated Statement of Comprehensive Income (Loss)
(In
Thousands of U.S. Dollars)
| |
Three
Months Ended | | |
Six
Months Ended | |
| |
June 30, | | |
March 31, | | |
June 30, | | |
June 30, | | |
June 30, | |
| |
2023 | | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
Net Income | |
$ | 197,536 | | |
$ | 106,829 | | |
$ | 88,555 | | |
$ | 304,365 | | |
$ | 97,489 | |
Other comprehensive income
(loss): | |
| | | |
| | | |
| | | |
| | | |
| | |
Foreign currency translation
adjustment | |
| (68,507 | ) | |
| 23,250 | | |
| (126,367 | ) | |
| (45,257 | ) | |
| (118,856 | ) |
Gain (loss) on changes in fair
value of available-for-sale debt securities, net of tax | |
| (1,050 | ) | |
| 339 | | |
| 229 | | |
| (711 | ) | |
| 229 | |
Gain (loss) on interest rate
swap, net of tax | |
| (67 | ) | |
| (105 | ) | |
| 160 | | |
| (172 | ) | |
| 350 | |
Share of
gain (loss) on changes in fair value of derivatives of affiliate, net of tax | |
| 503 | | |
| (610 | ) | |
| — | | |
| (107 | ) | |
| — | |
Comprehensive income (loss) | |
| 128,415 | | |
| 129,703 | | |
| (37,423 | ) | |
| 258,118 | | |
| (20,788 | ) |
Less: comprehensive
income (loss) attributable to non-controlling interests | |
| 3,690 | | |
| 25,162 | | |
| (3,960 | ) | |
| 28,852 | | |
| (2,833 | ) |
Comprehensive
income (loss) attributable to Canadian Solar Inc. | |
$ | 124,725 | | |
$ | 104,541 | | |
$ | (33,463 | ) | |
$ | 229,266 | | |
$ | (17,955 | ) |
Canadian
Solar Inc.
Unaudited
Condensed Consolidated Balance Sheets
(In
Thousands of U.S. Dollars)
| |
June 30, | | |
December 31, | |
| |
2023 | | |
2022 | |
ASSETS | |
| | | |
| | |
Current assets: | |
| | | |
| | |
Cash
and cash equivalents | |
$ | 2,011,425 | | |
$ | 981,434 | |
Restricted
cash | |
| 1,234,008 | | |
| 978,116 | |
Accounts
receivable trade, net | |
| 1,266,608 | | |
| 970,950 | |
Accounts
receivable, unbilled | |
| 65,282 | | |
| 57,770 | |
Amounts
due from related parties | |
| 71,249 | | |
| 48,614 | |
Inventories | |
| 1,532,149 | | |
| 1,524,095 | |
Value
added tax recoverable | |
| 186,349 | | |
| 158,773 | |
Advances
to suppliers, net | |
| 333,182 | | |
| 253,484 | |
Derivative
assets | |
| 7,637 | | |
| 17,516 | |
Project
assets | |
| 339,916 | | |
| 385,964 | |
Prepaid
expenses and other current assets | |
| 269,228 | | |
| 267,941 | |
Total current assets | |
| 7,317,033 | | |
| 5,644,657 | |
Restricted cash | |
| 4,706 | | |
| 9,953 | |
Property, plant and equipment,
net | |
| 2,000,396 | | |
| 1,826,643 | |
Solar power systems, net | |
| 612,518 | | |
| 364,816 | |
Deferred tax assets, net | |
| 219,367 | | |
| 229,226 | |
Advances to suppliers, net | |
| 140,430 | | |
| 65,352 | |
Investments in affiliates | |
| 159,486 | | |
| 115,784 | |
Intangible assets, net | |
| 13,942 | | |
| 17,530 | |
Project assets | |
| 347,012 | | |
| 438,529 | |
Right-of-use assets | |
| 146,364 | | |
| 103,600 | |
Amounts due from related parties | |
| 35,423 | | |
| 33,489 | |
Other non-current
assets | |
| 201,973 | | |
| 187,549 | |
TOTAL
ASSETS | |
$ | 11,198,650 | | |
$ | 9,037,128 | |
Canadian
Solar Inc.
Unaudited
Condensed Consolidated Balance Sheets (Continued)
(In
Thousands of U.S. Dollars)
| |
June 30, | | |
December
31, | |
| |
2023 | | |
2022 | |
Current liabilities: | |
| | | |
| | |
Short-term
borrowings | |
$ | 1,899,055 | | |
$ | 1,443,816 | |
Accounts
payable | |
| 770,606 | | |
| 805,300 | |
Short-term
notes payable | |
| 1,703,615 | | |
| 1,493,399 | |
Amounts
due to related parties | |
| 11,306 | | |
| 89 | |
Other
payables | |
| 798,032 | | |
| 853,040 | |
Advances
from customers | |
| 313,971 | | |
| 334,943 | |
Derivative
liabilities | |
| 18,113 | | |
| 25,359 | |
Operating
lease liabilities | |
| 10,693 | | |
| 9,810 | |
Other
current liabilities | |
| 477,091 | | |
| 293,012 | |
Total current liabilities | |
| 6,002,482 | | |
| 5,258,768 | |
Long-term borrowings | |
| 1,014,154 | | |
| 813,406 | |
Convertible notes | |
| 226,695 | | |
| 225,977 | |
Liability for uncertain tax
positions | |
| 5,730 | | |
| 5,730 | |
Deferred tax liabilities | |
| 68,457 | | |
| 66,630 | |
Loss contingency accruals | |
| 7,150 | | |
| 5,000 | |
Operating lease liabilities | |
| 75,707 | | |
| 25,714 | |
Other non-current
liabilities | |
| 357,001 | | |
| 329,209 | |
TOTAL
LIABILITIES | |
| 7,757,376 | | |
| 6,730,434 | |
Equity: | |
| | | |
| | |
Common shares | |
| 835,543 | | |
| 835,543 | |
Additional
paid-in capital | |
| 241,557 | | |
| 1,127 | |
Retained
earnings | |
| 1,529,202 | | |
| 1,275,520 | |
Accumulated
other comprehensive loss | |
| (158,782 | ) | |
| (170,551 | ) |
Total Canadian Solar Inc.
shareholders’ equity | |
| 2,447,520 | | |
| 1,941,639 | |
Non-controlling
interests | |
| 993,754 | | |
| 365,055 | |
TOTAL
EQUITY | |
| 3,441,274 | | |
| 2,306,694 | |
TOTAL
LIABILITIES AND EQUITY | |
$ | 11,198,650 | | |
$ | 9,037,128 | |
Canadian
Solar Inc.
Unaudited
Condensed Statements of Cash Flows
(In
Thousands of U.S. Dollars)
| |
Three
Months Ended | | |
Six
Months Ended | |
| |
June 30, | | |
March 31, | | |
June 30, | | |
June 30, | | |
June 30, | |
| |
2023 | | |
2023 | | |
2022 | | |
2023 | | |
2022 | |
Operating Activities: | |
| | | |
| | | |
| | | |
| | | |
| | |
Net
income | |
$ | 197,536 | | |
$ | 106,829 | | |
$ | 88,555 | | |
$ | 304,365 | | |
$ | 97,489 | |
Adjustments
to reconcile net income to net cash provided by operating activities | |
| 190,634 | | |
| 67,738 | | |
| 57,852 | | |
| 258,372 | | |
| 173,944 | |
Changes
in operating assets and liabilities | |
| (98,611 | ) | |
| (127,395 | ) | |
| 146,857 | | |
| (226,006 | ) | |
| 181,130 | |
Net cash provided by operating
activities | |
| 289,559 | | |
| 47,172 | | |
| 293,264 | | |
| 336,731 | | |
| 452,563 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Investing Activities: | |
| | | |
| | | |
| | | |
| | | |
| | |
Purchase
of property, plant and equipment | |
| (283,065 | ) | |
| (233,032 | ) | |
| (147,629 | ) | |
| (516,097 | ) | |
| (235,629 | ) |
Purchase
of solar power systems | |
| (36,329 | ) | |
| (109,866 | ) | |
| — | | |
| (146,195 | ) | |
| (101 | ) |
Other
investing activities | |
| (17,927 | ) | |
| (11,083 | ) | |
| (8,056 | ) | |
| (29,010 | ) | |
| (10,825 | ) |
Net cash used in investing activities | |
| (337,321 | ) | |
| (353,981 | ) | |
| (155,685 | ) | |
| (691,302 | ) | |
| (246,555 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Financing Activities: | |
| | | |
| | | |
| | | |
| | | |
| | |
Net proceeds
from subsidiary’s public offering of ordinary shares | |
| 803,645 | | |
| — | | |
| — | | |
| 803,645 | | |
| — | |
Other
financing activities | |
| 547,492 | | |
| 379,749 | | |
| 212,743 | | |
| 927,241 | | |
| 440,354 | |
Net cash
provided by financing activities | |
| 1,351,137 | | |
| 379,749 | | |
| 212,743 | | |
| 1,730,886 | | |
| 440,354 | |
Effect
of exchange rate changes | |
| (128,769 | ) | |
| 33,090 | | |
| (95,453 | ) | |
| (95,679 | ) | |
| (132,290 | ) |
Net increase in cash, cash equivalents
and restricted cash | |
| 1,174,606 | | |
| 106,030 | | |
| 254,869 | | |
| 1,280,636 | | |
| 514,072 | |
Cash,
cash equivalents and restricted cash at the beginning of the period | |
$ | 2,075,533 | | |
$ | 1,969,503 | | |
$ | 1,693,485 | | |
$ | 1,969,503 | | |
$ | 1,434,282 | |
Cash,
cash equivalents and restricted cash at the end of the period | |
$ | 3,250,139 | | |
$ | 2,075,533 | | |
$ | 1,948,354 | | |
$ | 3,250,139 | | |
$ | 1,948,354 | |
Grafico Azioni Canadian Solar (NASDAQ:CSIQ)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Canadian Solar (NASDAQ:CSIQ)
Storico
Da Mag 2023 a Mag 2024