GUELPH, ON, May 9, 2024 /PRNewswire/ -- Canadian Solar
Inc. ("Canadian Solar" or the "Company") (NASDAQ: CSIQ) today
announced financial results for the first quarter ended
March 31, 2024.
Highlights
- Solar module shipments of 6.3 GW, in line with guidance of 6.1
GW to 6.4 GW.
- Net revenues of $1.3
billion, in line with guidance of $1.2 billion to $1.4
billion.
- 19.0% gross margin, at the high end of 17% to 19% guidance
range.
- Net income attributable to Canadian Solar of $12 million or $0.19 per diluted share.
- Record quarterly delivery by e-STORAGE, with revenue topping
the total of 2023.
- Appointment of Mr. Xinbo Zhu as
Senior Vice President and Chief Financial Officer, effective
May 15, 2024. Most recently, Mr. Zhu
served as Chief Supply and Risk Officer of Recurrent Energy. Dr.
Huifeng Chang, who has served as
Chief Financial Officer since May
2016, will transition into his new role within the Company
as Chief Strategy Officer.
Dr. Shawn Qu, Chairman and
CEO, commented, "Shipments, revenue, and gross margin met our
expectations. We continue to apply tailored strategies across our
diverse businesses. In our module business, we are concentrating on
profitable growth and expanding our market share in key strategic
markets. Demand remains robust, and we are witnessing signs of
improvement in distributed generation markets and select
geographies. At Recurrent Energy, we are working to close the
BlackRock investment and executing on our expansive solar and
battery energy storage project development pipeline. At the same
time, our e-STORAGE platform continues to grow rapidly, as we
secure contracts in new markets and advance our proprietary
technologies for both utility-scale and residential
applications."
Yan Zhuang, President of
Canadian Solar's CSI Solar subsidiary, said, "Despite the
seasonally softer first quarter, we delivered strong results. Our
strategic approach to managing volume significantly enhanced our
margins. This improvement was supported by a decrease in
polysilicon prices and our continued ramping of N-type TOPCon
capacity. With the rapid phaseout of PERC and the narrowing cost
differential between these technologies, TOPCon has become the
market's preferred choice. We are well-positioned, as we continue
to reduce our manufacturing costs and enhance vertical integration.
Additionally, e-STORAGE delivered a record quarter, achieving
volume and revenue comparable to the totals for all of 2023."
Ismael Guerrero, CEO of
Canadian Solar's Recurrent Energy subsidiary, said, "Following
our announcement of a $500 million
capital commitment from BlackRock in January, we have secured most
requisite regulatory approvals and are expecting to obtain the rest
in due course. We are dedicated to executing our extensive project
pipeline, which includes nearly 1.5 GW of solar projects currently
under construction. This quarter, we also expanded our presence in
Spain with a strategic
acquisition, adding over 420 MWp to our pipeline."
Dr. Huifeng Chang, Senior VP
and CFO, added, "For the first quarter of 2024, we reported
$1.3 billion in revenue, a gross
margin of 19.0%, and net income of $12
million, achieving results within our guidance. We
efficiently progressed our strategic manufacturing initiatives
across vertical integration, N-type TOPCon capacity, and U.S.
supply chain. Our total assets have surpassed $12 billion, driven by significant growth in
project assets and solar power systems, setting the stage for
future profit generation. Finally, we concluded the quarter with a
strong cash position of $2.9
billion."
First Quarter 2024 Results
Total module shipments recognized as revenues in the first
quarter of 2024 were 6.3 GW, up 4% year-over-year ("yoy"). Of
the total, 236 MW were shipped to the Company's own
utility-scale solar power projects.
Net revenues in the first quarter of 2024 decreased 22%
quarter-over-quarter ("qoq") and 22% yoy to $1.3 billion. The sequential decrease primarily
reflects a decline in solar module shipment volume, a decline in
module average selling price ("ASP"), partially offset by higher
battery energy storage solutions sales. The yoy decrease primarily
reflects a decline in module ASP, partially offset by higher
battery energy storage solutions sales and an increase in solar
module shipment volume.
Gross profit in the first quarter of 2024 was $253 million, up 18% qoq and down
21% yoy. Gross margin in the first quarter of 2024
was 19.0%, compared to 12.5% in the fourth quarter of 2023 and
18.7% in the first quarter of 2023. The gross margin sequential
increase was primarily caused by lower manufacturing costs,
partially offset by lower module ASPs. The gross margin yoy
increase was primarily driven by lower manufacturing costs and a
higher margin contribution from battery energy storage solutions
sales, partially offset by lower module ASPs.
Total operating expenses in the first quarter of 2024 were
$204 million, compared to $213
million in the fourth quarter of 2023 and $172 million in the first quarter of 2023.
Depreciation and amortization charges in the first quarter
of 2024 were $110 million, compared to $89 million
in the fourth quarter of 2023 and $68
million in the first quarter of 2023. The sequential and yoy
increases were primarily driven by the Company's continued
investment in vertical integration and incremental capacity
expansion.
Net interest expense in the first quarter of 2024 was less than
$1 million, compared to $18
million in the fourth quarter of 2023 and $12 million in the first quarter of 2023. The
sequential and yoy decreases in net interest expense were mainly
driven by an interest benefit deriving from the interest income
generated by anti-dumping and countervailing duty deposit
refunds.
Net foreign exchange and derivative loss in the first quarter of
2024 was $4 million, compared to a
net gain of less than $1 million in
the fourth quarter of 2023 and a net loss of $13 million in the first quarter of 2023.
Net income attributable to Canadian Solar in the first quarter
of 2024 was $12 million, or
$0.19 per diluted share, compared to
a net loss of $1 million, or
$0.02 per diluted share, in the
fourth quarter of 2023, and net income of $84 million, or $1.19 per diluted share, in the first quarter of
2023.
Net cash flow used in operating activities in the first quarter
of 2024 was $291 million, compared to
net cash flow provided by operating activities of $190 million
in the fourth quarter of 2023 and $47
million in the first quarter of 2023. The operating cash
outflow primarily resulted from increased inventories and project
assets.
Total debt was $4.3 billion as of
March 31, 2024, including
$2.2 billion, $1.9 billion, and $0.2
billion related to CSI Solar, Recurrent Energy, and
convertible notes respectively. Total debt increased as compared to
$3.6 billion as of December 31, 2023 due to incremental borrowings
for working capital and additional vertical integration for CSI
Solar, and new project development for Recurrent Energy.
Business Segments
The Company has two business segments: Recurrent Energy and CSI
Solar. The two businesses operate as follows:
- Recurrent Energy is one of the world's largest clean
energy project development platforms with 15 years of experience,
having delivered over 10 GWp of solar power projects and 3.3 GWh of
battery energy 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 energy
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 energy storage business includes its utility-scale
turnkey battery energy system solutions, as well as a small but
growing residential battery energy storage business. These battery
energy storage systems solutions are complemented with long-term
service agreements, including future battery capacity augmentation
services.
Recurrent Energy Segment
As of March 31, 2024, the Company
held a leading position with a total global solar development
pipeline of 26 GWp and a battery energy storage development
pipeline of 56 GWh.
While Recurrent Energy's business model was historically
predominantly develop-to-sell, the Company has been 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 consists of three key drivers:
- Electricity revenue from operating portfolio to drive
stable, diversified cash flows in growth markets with stable
currencies;
- Asset sales (solar power and battery energy
storage) 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; and
- Power services (O&M) and asset
management through long-term operations and maintenance
("O&M") contracts, currently with 9.3 GW of contracted
projects, to drive stable and long-term recurring earnings and
synergies with the project development platform.
In January 2024, the Company
announced a $500 million investment
from BlackRock. The investment will provide Recurrent Energy with
additional capital to grow its high value project development
pipeline while executing its strategy to transition from a pure
developer to a developer plus long-term owner and operator in
select markets including the U.S. and Europe. This
transition is expected to create a more diversified portfolio and
provide more stable long-term revenue in low-risk currencies and
enable Recurrent Energy to create and retain greater value in its
own project development pipeline.
The perimeter of the transaction includes
the U.S., Canada, Spain, Italy,
the U.K., France, the
Netherlands, Germany, South
Africa, Brazil, Chile, Colombia, Australia, South
Korea and Taiwan; and excludes Canadian
Solar's project development business in China and
Japan, and certain assets
in Latin America and Taiwan. Closing of the
transaction is subject to regulatory approvals and certain terms
and conditions in accordance with the transaction agreements.
The $500 million investment will
represent 20% of the outstanding fully diluted shares of Recurrent
Energy on an as-converted basis. Canadian Solar will continue to
own the remaining majority shares of Recurrent Energy after the
closing of the investment.
Project Development Pipeline – Solar
As of March 31, 2024, Recurrent
Energy's total solar project development pipeline was 26.3 GWp,
including 1.5 GWp under construction, 5.0 GWp of backlog, and 19.8
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
backlog projects are contracted (i.e., have secured a PPA or FIT),
and the remaining have a reasonable assurance 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.
While the magnitude of the Company's project development
pipeline is an important indicator of potential expanded power
generation and battery energy storage capacity as well as potential
future revenue growth, the development of projects in its pipeline
is inherently uncertain. If the Company does not successfully
complete the pipeline projects in a timely manner, it may not
realize the anticipated benefits of the projects to the extent
anticipated, which could adversely affect its business, financial
condition, or results of operations. In addition, the Company's
guidance and estimates for its future operating and financial
results assume the completion of certain solar projects and battery
energy storage projects that are in its pipeline. If the Company is
unable to execute on its actionable pipeline, it may miss its
guidance, which could adversely affect the market price of its
common shares and its business, financial condition, or results of
operations.
The following table presents Recurrent Energy's total solar
project development pipeline.
|
Solar Project
Development Pipeline (as of March 31, 2024) – MWp*
|
Region
|
In
Construction
|
Backlog
|
Advanced
Pipeline
|
Early-Stage
Pipeline
|
Total
|
North
America
|
424
|
212
|
1,432
|
4,281
|
6,349
|
Europe, the Middle
East, and Africa
("EMEA")
|
47**
|
2,377
|
2,408
|
5,110
|
9,942
|
Latin
America
|
896**
|
867
|
83
|
2,832
|
4,678
|
Asia Pacific excluding
China and Japan
|
-
|
173
|
718
|
1,418
|
2,309
|
China
|
100
|
1,220**
|
-
|
1,460
|
2,780
|
Japan
|
32
|
164
|
14
|
30
|
240
|
Total
|
1,499
|
5,013
|
4,655
|
15,131
|
26,298
|
*All numbers are
gross MWp.
**Including 388 MWp
in construction and 159 MWp in backlog that are owned by or already
sold to third parties.
|
|
|
|
|
|
|
|
Project Development Pipeline – Battery Energy Storage
As of March 31, 2024, Recurrent
Energy's total battery energy storage project development pipeline
was 55.9 GWh, including 4.3 GWh under construction and in backlog,
and 51.6 GWh of projects in advanced and early-stage pipelines.
The table below sets forth Recurrent Energy's total battery
energy storage project development pipeline.
Battery Energy
Storage Project Development Pipeline (as of
March 31, 2024) – MWh
|
Region
|
In
Construction
|
Backlog
|
Advanced
Pipeline
|
Early-Stage
Pipeline
|
Total
|
North
America
|
-
|
1,600
|
2,180
|
15,084
|
18,864
|
EMEA
|
-
|
150
|
6,057
|
18,174
|
24,381
|
Latin
America
|
-
|
1,725
|
800
|
-
|
2,525
|
Asia Pacific excluding
China and Japan
|
8
|
440
|
400
|
1,240
|
2,088
|
China
|
400
|
-
|
-
|
6,000
|
6,400
|
Japan
|
-
|
8
|
767
|
900
|
1,675
|
Total
|
408
|
3,923
|
10,204
|
41,398
|
55,933
|
Projects in Operation – Solar Power and Battery Energy
Storage Power Plants (Including Unconsolidated Projects)
As of March 31, 2024, the solar
power plants in operation totaled around 1.2 GWp, with a combined
estimated net resale value of approximately $850 million.
The estimated net resale value is based on selling prices that
Recurrent Energy is currently negotiating or comparable asset
sales. Battery energy storage plants in operation totaled 600 MWh
as of March 31, 2024.
Power Plants in
Operation*
|
|
North
America
|
EMEA
|
Latin
America
|
Asia
Pacific
ex. China
and Japan
|
China
|
Japan
|
Total
|
Solar (MWp)
|
-
|
54
|
836
|
6
|
292
|
59
|
1,247
|
Battery Energy
Storage (MWh)
|
280
|
|
-
|
20
|
300
|
-
|
600
|
*All numbers are net
MWp or MWh owned by Recurrent Energy; total gross MWp of solar
projects is 1,992MWp and total gross battery
energy storage projects is 1,720 MWh, including volume that is
already sold to third parties.
|
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
|
|
March
31,
2024
|
December
31,
2023
|
March 31,
2023
|
Net revenues
|
39,433
|
53,750
|
20,052
|
Cost of
revenues
|
26,381
|
31,995
|
12,843
|
Gross profit
|
13,052
|
21,755
|
7,209
|
Operating
expenses
|
33,573
|
22,938
|
22,414
|
Loss from
operations*
|
(20,521)
|
(1,183)
|
(15,205)
|
Gross
margin
|
33.1 %
|
40.5 %
|
36.0 %
|
Operating
margin
|
-52.0 %
|
-2.2 %
|
-75.8 %
|
|
* 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 and Solar System Kits
CSI Solar shipped 6.3 GW of solar modules and solar system kits
to more than 70 countries in the first quarter of 2024. For the
first quarter of 2024, the top five markets ranked by shipments
were China, the U.S., Pakistan, Brazil, and Spain.
CSI Solar's revised manufacturing capacity expansion targets are
set forth below.
|
Solar Manufacturing
Capacity, GW*
|
|
March
2024
Actual
|
June
2024
Plan
|
December
2024
Plan
|
Ingot
|
20.4
|
20.4
|
50.4
|
Wafer
|
24.0
|
28.0
|
50.0
|
Cell
|
48.4
|
48.4
|
55.7
|
Module
|
58.0
|
60.0
|
61.0
|
*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.
|
e-STORAGE: Battery Energy Storage Solutions
e-STORAGE is CSI Solar's utility-scale battery energy storage
platform. e-STORAGE provides customers with competitive turnkey,
integrated, utility-scale battery energy storage solutions,
including bankable, end-to-end, utility-scale, turnkey battery
energy 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 March 31, 2024, e-STORAGE
had a total project turnkey pipeline of around 56 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 approximately 3.1 GWh of operating battery
energy storage projects contracted under long-term service
agreements, all of which were battery energy storage projects
previously executed by e-STORAGE.
As of March 31, 2024, the
contracted backlog, including contracted long-term service
agreements, was $2.5 billion. These
are signed orders with contractual obligations to customers,
providing significant earnings visibility over a multi-year
period.
The table below sets forth e-STORAGE's manufacturing capacity
expansion targets.
Battery Energy
Storage Manufacturing
Capacity, GWh*
|
March
2024
Actual
|
December
2025
Plan
|
SolBank
|
20.0
|
30.0
|
*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
|
|
March 31,
2024
|
December 31,
2023
|
March 31,
2023
|
Net revenues
|
1,342,153
|
1,701,320
|
1,709,730
|
Cost of
revenues
|
1,094,568
|
1,494,723
|
1,394,121
|
Gross profit
|
247,585
|
206,597
|
315,609
|
Operating
expenses
|
165,113
|
166,120
|
146,151
|
Income from
operations
|
82,472
|
40,477
|
169,458
|
Gross
margin
|
18.4 %
|
12.1 %
|
18.5 %
|
Operating
margin
|
6.1 %
|
2.4 %
|
9.9 %
|
*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)
|
|
Q1
2024
|
% of Net
Revenues
|
|
Q4
2023
|
% of Net
Revenues
|
|
Q1
2023
|
% of Net
Revenues
|
Americas
|
676
|
53
|
|
579
|
35
|
|
632
|
38
|
Asia
|
417
|
32
|
|
738
|
45
|
|
555
|
33
|
Europe and
others
|
197
|
15
|
|
331
|
20
|
|
494
|
29
|
Total
|
1,290
|
100
|
|
1,648
|
100
|
|
1,681
|
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 second quarter of 2024, the Company expects total
revenue to be in the range of $1.5
billion to $1.7 billion. Gross
margin is expected to be between 16% and 18%. Total module
shipments recognized as revenues by CSI Solar are expected to be in
the range of 7.5 GW to 8.0 GW, including approximately
100 MW to the Company's own projects. Total battery energy
storage shipments by CSI Solar in the second quarter of 2024 are
expected to be between 1.4 GWh to 1.6 GWh, including about 800 MWh
to the Company's own projects.
For the full year of 2024, the Company expects total module
shipments to be in the range of 35 GW to 40 GW and CSI Solar's
total battery energy storage shipments in the range of 6.0 GWh to
6.5 GWh, including approximately 2 GW and 2.5 GWh respectively to
the Company's own projects. The Company's total revenue is expected
to be in the range of $7.3 billion to
$8.3 billion.
Dr. Shawn Qu, Chairman and
CEO, commented, "Our updated shipment and revenue guidance
reaffirms our commitment to profitable growth, as we strategically
manage volume to protect our margins in a difficult
macroenvironment. With the market continuing to rebalance, we
remain hopeful about improving economics in the second half of the
year, driven by both price normalization and further reductions to
our manufacturing costs. Canadian Solar is well-equipped to weather
this cycle, thanks to our continual investment in technological
innovation; strong position with e-STORAGE, on track to achieve a
record-breaking year; and Recurrent Energy, poised to implement its
business model transformation."
Recent Developments
Canadian Solar
On May 8, 2024, Canadian Solar
announced it won three battery storage system ("BESS") projects,
totaling 193 MW, in Japan's first
Long-Term Decarbonization Power Source Auction ("LTDA"). Canadian
Solar secured 13.3% of the total awarded energy storage
projects.
On April 29, 2024, Canadian Solar
announced it won Environmental Finance's Green Project Bond of the
Year award for its JPY18.5 billion
($120 million) green samurai private
placement issued in 2023. The bond empowers Canadian Solar's global
development business, Recurrent Energy, to grow its solar and
battery energy storage projects under development and asset
management business. Environmental Finance is an industry-leading
global publication, and its annual Sustainable Debt Awards
celebrate leading green, social, sustainable and
sustainability-linked bond and loan deals and recognize market
innovations.
On April 17, 2024, Canadian Solar
announced it was awarded a Silver rating from EcoVadis, one of
the world's largest and most trusted providers of business
sustainability ratings, headquartered in Paris, France. The rating score also
placed Canadian Solar in the top 5% of companies rated
by EcoVadis within the company's industry. Notably,
within the industry, Canadian Solar ranked among the top
3% and top 4% for environment and sustainable procurement,
respectively.
Recurrent Energy
On April 15, 2024, Canadian Solar
announced it secured 343 million Brazilian reais
(approximately $70 million) of non-recourse project financing
from Banco do Nordeste do Brasil S.A. (BNB) to support
construction and operation of its 152 MWp Jaiba III solar project
in Brazil. Recurrent has secured a 15-year, inflation-adjusted
power purchase agreement for the project through a private auction
with Usiminas, the leading flat steel company in Brazil. The
project is currently under construction and is expected to be in
operation in the fourth quarter of 2024.
On April 3, 2024, Canadian Solar
announced it secured a multi-currency facility of up to €110
million ($120 million) from a group
of international banks led by Investec Bank Plc. The
facility consists of a €55 million term loan and a €55 million
revolving credit facility with a total duration of three years. The
funding will support Recurrent Energy in the execution of its
global solar PV and energy storage project pipeline, as it
transitions to become an independent power producer (IPP) and
accelerates its growth strategy.
On March 20, 2024, Canadian Solar
announced the acquisition of a solar PV portfolio in the south of
Spain, with a capacity of more
than 420 MWp. The portfolio is located in Carmona, a municipality
in Seville (Andalusia) and
consists of a cluster of four projects, Rey I, II, III, and IV.
These projects are currently under construction and will feature
Canadian Solar TopBiHiKu 7 N-type bifacial TOPCon technology
modules.
Conference Call Information
The Company will hold a
conference call on Thursday, May 9,
2024, at 8:00 a.m. U.S. Eastern Time (8:00 p.m., Thursday, May
9, 2024, in Hong Kong) to
discuss its first quarter 2024 results and business outlook.
The dial-in phone number for the live audio call is +1-800-717-1738
(toll-free from the U.S.), +852 5808 0636 (from Hong
Kong), +86 010 8783 3254 (local dial-in from Mainland China) or
+1-646-307-1865 from international locations. The conference ID is
60603. A live webcast of the conference call will also be available
on the investor relations section of Canadian
Solar's website.
A replay of the call will be available after the conclusion of
the call until 11:00 p.m. U.S. Eastern Time
on Thursday, May 23, 2024 (11:00 a.m. May 24, 2024,
in Hong Kong) and can be accessed by dialing +1-844-512-2921
(toll-free from the U.S.) or +1-412-317-6671 from
international locations. The replay pin number is 1160603. A
webcast replay will also be available on the investor relations
section of Canadian
Solar's 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 energy storage solutions, and developer of
utility-scale solar power and battery energy storage projects with
a geographically diversified pipeline in various stages of
development. Over the past 23 years, Canadian Solar has
successfully delivered over 125 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 10 GWp of solar power
projects and 3.3 GWh of battery energy storage projects across the
world. Currently, the Company has over 1.2 GWp of solar power
projects in operation, 6.5 GWp of projects under construction or in
backlog (late-stage), and an additional 19.8 GWp of
projects in advanced and early-stage pipeline. In addition, the
Company has 600 MWh of battery energy storage projects in operation
and a total battery energy storage project development pipeline of
around 56 GWh, including approximately 4.3 GWh under construction
or in backlog, and an additional 51.6 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 power and battery energy
storage market and industry; geopolitical tensions and conflicts,
including impasses, sanctions and export controls; volatility,
uncertainty, delays and disruptions related to global pandemics;
supply chain disruptions; governmental support for the deployment
of solar power and battery energy storage; future available
supplies of silicon, solar wafers and lithium cells; 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 China, the U.S., Europe, Brazil and Japan; 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; the pipeline of projects and timelines related to
them; the ability of the parties to optimize value of that
pipeline; 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 26, 2024. 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 Contact:
Wina Huang
Investor
Relations
Canadian Solar
Inc.
investor@canadiansolar.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 March 31, 2024
(In Thousands of
U.S. Dollars, Except Percentages)
|
|
|
|
CSI
Solar
|
|
Recurrent
Energy
|
|
Elimination
and
unallocated
items (1)
|
|
Total
|
Net
revenues
|
|
|
$ 1,342,153
|
|
$ 39,433
|
|
$ (52,475)
|
|
$ 1,329,111
|
Cost of
revenues
|
|
|
1,094,568
|
|
26,381
|
|
(44,591)
|
|
1,076,358
|
Gross profit
|
|
|
247,585
|
|
13,052
|
|
(7,884)
|
|
252,753
|
Gross margin
|
|
|
18.4 %
|
|
33.1 %
|
|
—
|
|
19.0 %
|
Income (loss) from
operations (2)
|
|
|
$ 82,472
|
|
$ (20,521)
|
|
$ (12,879)
|
|
$ 49,072
|
|
|
|
|
|
|
|
|
|
|
Supplementary
Information:
|
|
|
|
|
|
|
|
|
|
Interest expense
(3)
|
|
|
$ (15,709)
|
|
$ (14,289)
|
|
$ (4,869)
|
|
$ (34,867)
|
Interest income
(3)
|
|
|
31,869
|
|
2,404
|
|
29
|
|
34,302
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$ 1,819,182
|
|
$ 251,421
|
|
$ 6,889
|
|
$ 2,077,492
|
Restricted cash –
current and
noncurrent
|
|
|
815,776
|
|
865
|
|
—
|
|
816,641
|
Non-recourse
borrowings
|
|
|
—
|
|
480,799
|
|
—
|
|
480,799
|
Other short-term and
long-
term borrowings
|
|
|
2,036,675
|
|
1,251,319
|
|
—
|
|
3,287,994
|
Green bonds and
convertible
notes
|
|
|
—
|
|
152,520
|
|
227,793
|
|
380,313
|
|
|
|
Select Financial
Data – CSI Solar and Recurrent Energy
|
|
|
|
Three Months Ended
March 31, 2023
(In Thousands of U.S. Dollars, Except Percentages)
|
|
|
|
CSI
Solar
|
|
Recurrent
Energy
|
|
Elimination
and
unallocated
items (1)
|
|
Total
|
Net
revenues
|
|
|
$ 1,709,730
|
|
$ 20,052
|
|
$ (28,501)
|
|
$ 1,701,281
|
Cost of
revenues
|
|
|
1,394,121
|
|
12,843
|
|
(23,684)
|
|
1,383,280
|
Gross profit
|
|
|
315,609
|
|
7,209
|
|
(4,817)
|
|
318,001
|
Gross margin
|
|
|
18.5 %
|
|
36.0 %
|
|
—
|
|
18.7 %
|
Income (loss) from
operations (2)
|
|
|
$ 169,458
|
|
$ (15,205)
|
|
$ (8,649)
|
|
$ 145,604
|
|
|
|
|
|
|
|
|
|
|
Supplementary
Information:
|
|
|
|
|
|
|
|
|
|
Interest expense
(3)
|
|
|
$ (13,588)
|
|
$ (5,065)
|
|
$ (1,795)
|
|
$ (20,448)
|
Interest income
(3)
|
|
|
6,477
|
|
1,452
|
|
27
|
|
7,956
|
|
(1) Includes
inter-segment elimination, and unallocated corporate items not
considered part of management's evaluation of business segment
operating performance.
|
(2) Income (loss)
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
March
31,
2024
|
|
Three Months
Ended
December 31,
2023
|
|
Three Months
Ended
March
31,
2023
|
|
(In Thousands of
U.S. Dollars)
|
CSI Solar
Revenues:
|
|
|
|
|
|
Solar
modules
|
$ 912,150
|
|
$ 1,243,066
|
|
$ 1,454,876
|
Solar system
kits
|
99,247
|
|
144,492
|
|
133,587
|
Battery energy storage
solutions
|
251,473
|
|
195,899
|
|
14,810
|
EPC and
others
|
26,808
|
|
64,830
|
|
77,956
|
Subtotal
|
1,289,678
|
|
1,648,287
|
|
1,681,229
|
Recurrent
Energy Revenues:
|
|
|
|
|
|
Solar power and
battery energy storage asset
sales
|
6,044
|
|
21,449
|
|
4,621
|
Power services
(O&M) and asset management
|
15,868
|
|
15,910
|
|
8,687
|
Electricity revenue
from operating portfolio
and others
|
17,521
|
|
16,391
|
|
6,744
|
Subtotal
|
39,433
|
|
53,750
|
|
20,052
|
Total net
revenues
|
$ 1,329,111
|
|
$ 1,702,037
|
|
$ 1,701,281
|
|
Canadian Solar
Inc.
|
|
Unaudited Condensed
Consolidated Statements of Operations
|
|
(In Thousands of
U.S. Dollars, Except Share and Per Share Data)
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
2024
|
|
2023
|
|
2023
|
|
|
|
|
|
|
|
Net revenues
|
$ 1,329,111
|
|
$ 1,702,037
|
|
$ 1,701,281
|
Cost of
revenues
|
1,076,358
|
|
1,488,633
|
|
1,383,280
|
|
Gross
profit
|
252,753
|
|
213,404
|
|
318,001
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Selling and
distribution expenses
|
88,412
|
|
93,847
|
|
88,371
|
|
General and
administrative expenses
|
94,693
|
|
108,236
|
|
78,648
|
|
Research and
development expenses
|
34,279
|
|
31,503
|
|
17,307
|
|
Other operating income,
net
|
(13,703)
|
|
(20,759)
|
|
(11,929)
|
Total operating
expenses
|
203,681
|
|
212,827
|
|
172,397
|
|
|
|
|
|
|
|
Income from
operations
|
49,072
|
|
577
|
|
145,604
|
Other income
(expenses):
|
|
|
|
|
|
|
Interest
expense
|
(34,867)
|
|
(33,247)
|
|
(20,448)
|
|
Interest
income
|
34,302
|
|
15,632
|
|
7,956
|
|
Gain (loss) on change
in fair value of derivatives, net
|
(16,694)
|
|
(7,039)
|
|
7,601
|
|
Foreign exchange gain
(loss), net
|
12,913
|
|
7,058
|
|
(20,860)
|
|
Investment income,
net
|
169
|
|
1,965
|
|
8,380
|
Total other
expenses
|
(4,177)
|
|
(15,631)
|
|
(17,371)
|
|
|
|
|
|
|
|
Income (loss) before
income taxes and equity in earnings of
affiliates
|
44,895
|
|
(15,054)
|
|
128,233
|
Income tax
benefit (expense)
|
(9,677)
|
|
4,650
|
|
(28,715)
|
Equity in earnings of
affiliates
|
1,005
|
|
7,204
|
|
7,311
|
Net income
(loss)
|
36,223
|
|
(3,200)
|
|
106,829
|
|
|
|
|
|
|
|
Less: Net income
(loss) attributable to non-controlling
interests
|
23,871
|
|
(1,814)
|
|
23,117
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Canadian Solar Inc.
|
$
12,352
|
|
$
(1,386)
|
|
$
83,712
|
|
|
|
|
|
|
|
Earnings (loss) per
share - basic
|
$ 0.19
|
|
$
(0.02)
|
|
$
1.30
|
Shares used in
computation - basic
|
66,164,560
|
|
66,035,331
|
|
64,517,935
|
Earnings (loss) per
share - diluted
|
$ 0.19
|
|
$
(0.02)
|
|
$
1.19
|
Shares used in
computation - diluted
|
66,642,725
|
|
66,035,331
|
|
71,424,749
|
Canadian Solar
Inc.
|
Unaudited Condensed
Consolidated Statement of Comprehensive Income
(Loss)
|
(In Thousands
of U.S. Dollars)
|
|
Three Months
Ended
|
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
|
2024
|
|
2023
|
|
2023
|
|
Net Income
(loss)
|
$
36,223
|
|
$
(3,200)
|
|
$
106,829
|
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
(53,813)
|
|
82,692
|
|
23,250
|
|
Gain (loss) on changes
in fair value of available-for-sale debt
securities, net of tax
|
880
|
|
(2,897)
|
|
339
|
|
Gain (loss) on interest
rate swap, net of tax
|
965
|
|
(2,821)
|
|
(105)
|
|
Share of gain (loss) on
changes in fair value of derivatives of
affiliate, net of tax
|
1,134
|
|
3,074
|
|
(610)
|
|
Comprehensive income
(loss)
|
(14,611)
|
|
76,848
|
|
129,703
|
|
Less: comprehensive
income attributable to non-controlling
interests
|
20,337
|
|
17,324
|
|
25,162
|
|
Comprehensive income
(loss) attributable to Canadian Solar
Inc.
|
$
(34,948)
|
|
$
59,524
|
|
$
104,541
|
|
|
|
|
|
|
|
|
|
Canadian Solar
Inc.
|
|
Unaudited Condensed
Consolidated Balance Sheets
|
(In Thousands of
U.S. Dollars)
|
|
|
March
31,
|
|
December 31,
|
|
|
|
2024
|
|
2023
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$ 2,077,492
|
|
$ 1,938,689
|
|
|
Restricted
cash
|
812,145
|
|
999,933
|
|
|
Accounts receivable
trade, net
|
809,398
|
|
904,943
|
|
|
Accounts receivable,
unbilled
|
125,538
|
|
101,435
|
|
|
Amounts due from
related parties
|
35,260
|
|
40,582
|
|
|
Inventories
|
1,394,996
|
|
1,179,641
|
|
|
Value added tax
recoverable
|
168,622
|
|
162,737
|
|
|
Advances to suppliers,
net
|
228,547
|
|
193,818
|
|
|
Derivative
assets
|
4,004
|
|
9,282
|
|
|
Project
assets
|
277,945
|
|
280,793
|
|
|
Prepaid expenses and
other current assets
|
243,751
|
|
283,600
|
|
Total current
assets
|
6,177,698
|
|
6,095,453
|
|
Restricted
cash
|
4,496
|
|
7,810
|
|
Property, plant and
equipment, net
|
3,052,995
|
|
3,088,442
|
|
Solar power systems,
net
|
1,164,625
|
|
951,513
|
|
Deferred tax assets,
net
|
277,923
|
|
263,458
|
|
Advances to suppliers,
net
|
201,178
|
|
132,218
|
|
Investments in
affiliates
|
237,521
|
|
236,928
|
|
Intangible assets,
net
|
35,390
|
|
19,727
|
|
Project
assets
|
703,702
|
|
576,793
|
|
Right-of-use
assets
|
232,282
|
|
237,007
|
|
Amounts due from
related parties
|
38,282
|
|
32,313
|
|
Other non-current
assets
|
240,678
|
|
254,098
|
|
TOTAL
ASSETS
|
$
12,366,770
|
|
$
11,895,760
|
|
|
|
|
|
|
|
|
Canadian Solar
Inc.
|
|
Unaudited Condensed
Consolidated Balance Sheets (Continued)
|
|
(In Thousands of
U.S. Dollars)
|
|
|
March
31,
|
|
December
31,
|
|
|
2024
|
|
2023
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
borrowings
|
$ 2,180,348
|
|
$ 1,805,198
|
|
|
Accounts
payable
|
818,189
|
|
813,677
|
|
|
Short-term notes
payable
|
895,607
|
|
878,285
|
|
|
Amounts due to related
parties
|
1,016
|
|
511
|
|
|
Other
payables
|
1,278,844
|
|
1,359,679
|
|
|
Advances from
customers
|
362,323
|
|
392,308
|
|
|
Derivative
liabilities
|
10,005
|
|
6,702
|
|
|
Operating lease
liabilities
|
19,497
|
|
20,204
|
|
|
Other current
liabilities
|
472,659
|
|
587,827
|
|
Total current
liabilities
|
6,038,488
|
|
5,864,391
|
|
Long-term
borrowings
|
1,588,445
|
|
1,265,965
|
|
Green bonds and
convertible notes
|
380,313
|
|
389,033
|
|
Liability for uncertain
tax positions
|
5,847
|
|
5,701
|
|
Deferred tax
liabilities
|
82,637
|
|
82,828
|
|
Operating lease
liabilities
|
111,606
|
|
116,846
|
|
Other non-current
liabilities
|
468,018
|
|
465,752
|
|
TOTAL
LIABILITIES
|
8,675,354
|
|
8,190,516
|
|
Equity:
|
|
|
|
|
|
Common
shares
|
835,543
|
|
835,543
|
|
|
Additional paid-in
capital
|
298,480
|
|
292,737
|
|
|
Retained
earnings
|
1,562,059
|
|
1,549,707
|
|
|
Accumulated other
comprehensive loss
|
(166,044)
|
|
(118,744)
|
|
Total Canadian Solar
Inc. shareholders' equity
|
2,530,038
|
|
2,559,243
|
|
Non-controlling
interests
|
1,161,378
|
|
1,146,001
|
|
TOTAL
EQUITY
|
3,691,416
|
|
3,705,244
|
|
TOTAL LIABILITIES
AND EQUITY
|
$
12,366,770
|
|
$
11,895,760
|
|
Canadian
Solar Inc.
|
Unaudited
Condensed Statements of Cash Flows
|
(In
Thousands of U.S. Dollars)
|
|
Three Months
Ended
|
|
March
31,
|
|
December
31,
|
|
March
31,
|
|
2024
|
|
2023
|
|
2023
|
Operating
Activities:
|
|
|
|
|
|
Net income
(loss)
|
$ 36,223
|
|
$ (3,200)
|
|
$ 106,829
|
Adjustments to
reconcile net income to net cash (used in)
provided by operating activities
|
158,350
|
|
171,051
|
|
67,738
|
Changes in operating
assets and liabilities
|
(486,060)
|
|
22,146
|
|
(127,395)
|
Net cash (used in)
provided by operating activities
|
(291,487)
|
|
189,997
|
|
47,172
|
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
(266,462)
|
|
(295,086)
|
|
(233,032)
|
Purchase of solar
power systems
|
(173,341)
|
|
(183,277)
|
|
(109,866)
|
Other investing
activities
|
6,832
|
|
(17,011)
|
|
(11,083)
|
Net cash used in
investing activities
|
(432,971)
|
|
(495,374)
|
|
(353,981)
|
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
|
|
Other financing
activities
|
723,412
|
|
222,216
|
|
379,749
|
Net cash provided by
financing activities
|
723,412
|
|
222,216
|
|
379,749
|
Effect of exchange rate
changes
|
(51,253)
|
|
36,561
|
|
33,090
|
Net increase (decrease)
in cash, cash equivalents and restricted
cash
|
(52,299)
|
|
(46,600)
|
|
106,030
|
Cash, cash
equivalents and restricted cash at the beginning
of the period
|
$
2,946,432
|
|
$
2,993,032
|
|
$
1,969,503
|
Cash, cash
equivalents and restricted cash at the end of the
period
|
$
2,894,133
|
|
$2,946,432
|
|
$
2,075,533
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/canadian-solar-reports-first-quarter-2024-results-and-announces-appointment-of-chief-financial-officer-302141062.html
SOURCE Canadian Solar Inc.