GUELPH,
ON, Aug. 22, 2023 /PRNewswire/
-- 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.
Investor Relations Contacts:
Isabel Zhang
Investor
Relations
Canadian Solar
Inc.
investor@canadiansolar.com
|
David
Pasquale
Global IR
Partners
Tel:
+1-914-337-8801
csiq@globalirpartners.com
|
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
|
View original
content:https://www.prnewswire.com/news-releases/canadian-solar-reports-second-quarter-2023-results-301906590.html
SOURCE Canadian Solar Inc.