GUELPH,
ON, Aug. 22, 2024 /PRNewswire/
-- Canadian Solar Inc. ("Canadian Solar" or the
"Company") (NASDAQ: CSIQ) today announced financial results for the
second quarter ended June 30,
2024.
Highlights
- Solar module shipments of 8.2 GW, above guidance of 7.5 GW to
8.0 GW.
- Net revenues of $1.6 billion, in
line with guidance of $1.5 billion to
$1.7 billion.
- 17.2% gross margin, in line with guidance of 16% to 18%.
- e-STORAGE backlog grew to $2.6
billion, backed by a record 66 GWh of pipeline, as of
June 30, 2024.
- Recurrent Energy expanded its total development pipeline to 27
GWp of solar and 63 GWh of battery energy storage, as of
June 30, 2024.
- Achieved initial closing of BlackRock's investment in Recurrent
Energy, representing the majority of the planned $500 million capital infusion.
- Announced a $200 million private
placement of secured convertible notes with PAG.
- Published the 2023 Corporate Sustainability Report, featuring
sustainability disclosures aligned with global standards, on
May 31, 2024.
Dr. Shawn Qu, Chairman and
CEO, commented, "We achieved solid results in the second
quarter of 2024, with shipments, revenue, and gross margin meeting
or surpassing our previous guidance. Today, we have reached an
optimal scale—large enough to maintain a highly competitive cost
structure yet lean enough to adapt swiftly to changes in industry
dynamics. In our module business, we continue to apply a
disciplined approach to operations, from strategic capacity
investments to stringent order management. At the same time, we are
positioning ourselves for sustainable medium- and long-term growth
through our energy storage business, e-STORAGE, and global project
development platform, Recurrent Energy. Sustainable and ethical
growth is key to our strategy, and we are proud to have published
our latest Corporate Sustainability Report, featuring expanded
disclosures and enhanced transparency."
Yan Zhuang, President of
Canadian Solar's CSI Solar subsidiary, said, "Despite
challenging market dynamics, CSI Solar achieved strong results in
the first half. Amidst fierce industry competition, we maintained
our focus on profitability while also increasing volume this
quarter. As polysilicon prices further declined, the resulting
price decreases across the upstream supply chain helped reduce
manufacturing costs. Given the current industry landscape, we have
decided to delay certain upstream investments to further prioritize
profitability. In these situations, our partial vertical
integration affords us strategic agility. Additionally, e-STORAGE
not only delivered record volumes, but also grew its backlog to
$2.6 billion, supported by a robust
66 GWh pipeline."
Ismael Guerrero, CEO of
Canadian Solar's Recurrent Energy subsidiary, said, "We
successfully completed the initial closing of BlackRock's
$500 million investment and expect to
finalize the transaction in the coming months. As we progress
toward our operational targets, we continue to demonstrate our
ability to secure competitive financing. Notably, we obtained a
landmark multi-currency revolving credit facility valued at up to
€1.3 billion, involving ten banks, to support the construction of
renewable energy projects across several European countries."
Xinbo Zhu, Senior VP and
CFO, added, "In the second quarter of 2024, we delivered
$1.6 billion in revenue, a gross
margin of 17.2%, and $4 million in
net income. Going forward, CSI Solar and Recurrent Energy's
leverage profiles will align with their respective strategic goals.
This quarter, CSI Solar reduced its debt to better navigate the
industry cycle. Meanwhile, Recurrent Energy will continue to
increase leverage in the near-term to support its transition to a
partial IPP model. The recently announced convertible notes will
contribute to optimizing our capital structure, providing us with
added financial flexibility."
Second Quarter 2024 Results
Total module shipments recognized as revenues in the second
quarter of 2024 were 8.2 GW, up 30% quarter-over-quarter ("qoq")
and remained consistent year-over-year ("yoy"). Of the total, 135
MW were shipped to the Company's own utility-scale solar
power projects.
Net revenues in the second quarter of 2024 increased
23% qoq and decreased 31% yoy to $1.6
billion. The sequential increase primarily reflects a higher
solar module shipment volume, partially offset by a decline in
module average selling price ("ASP"). The yoy decrease primarily
reflects a decline in module ASPs and lower project sales,
partially offset by higher battery energy storage solutions
sales.
Gross profit in the second quarter of 2024 was
$282 million, up 12% qoq and down 36% yoy. Gross
margin in the second quarter of 2024 was 17.2%, compared to
19.0% in the first quarter of 2024 and 18.6% in the second quarter
of 2023. The gross margin sequential decrease was primarily caused
by lower module ASPs. The gross margin yoy decrease was primarily
driven by lesser margin contribution from solar power and battery
energy storage asset sales and lower module ASPs, partially offset
by lower manufacturing costs.
Total operating expenses in the second quarter of 2024 were
$234 million, compared to $204 million in the first
quarter of 2024 and $216 million in
the second quarter of 2023. The sequential and yoy increases were
primarily driven by higher shipping and handling expenses, with the
yoy increase being partially offset by a decrease in share-based
compensation expense.
Depreciation and amortization charges in the second quarter
of 2024 were $122 million, compared to $110 million
in the first quarter of 2024 and $73
million in the second 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 second quarter of 2024 was
$19 million, compared to less than
$1 million in the first quarter of
2024 and $21 million in the second
quarter of 2023. Net interest expense returned to a normalized
level in the second quarter of 2024 with the absence of an interest
benefit deriving from the interest income generated by anti-dumping
and countervailing duty deposit refunds in the first quarter of
2024.
Net foreign exchange and derivative gain in the second quarter
of 2024 was $13 million, compared to a net loss of
$4 million in the first quarter
of 2024 and a net gain of $34 million
in the second quarter of 2023.
Net income attributable to Canadian Solar in the
second quarter of 2024 was $4
million, or $0.02 per diluted
share, compared to a net income of $12
million, or $0.19 per diluted
share, in the first quarter of 2024, and net income of $170 million, or $2.39 per diluted share, in the second quarter of
2023. Basic and diluted earnings per share ("EPS") includes
Recurrent Energy redeemable preferred shares dividends payable in
kind. As a result, an EPS effect of 3
cents was deducted in the second quarter of 2024 on a
dilutive basis.
Net cash flow used in operating activities in the second quarter
of 2024 was $429 million, compared to
net cash flow used in operating activities of $291 million in the first quarter of 2024
and net cash flow provided by operating activities of $290 million in the second quarter of 2023. The
operating cash outflow primarily resulted from increased project
assets and accounts receivable.
Total debt was $4.2 billion
as of June 30, 2024, including
$2.0 billion, $2.0 billion, and $0.2 billion related to CSI Solar, Recurrent
Energy, and convertible notes, respectively. Total debt decreased
as compared to $4.3 billion as of
March 31, 2024, mainly driven by
optimization of CSI Solar's financial leverage to navigate the
industry cycle, partially offset by 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 approximately 11 GWp of solar power projects and
3.7 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 June 30, 2024, the Company
held a leading position with a total global solar development
pipeline of 27 GWp and a battery energy storage development
pipeline of 63 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 approximately 11 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
enables Recurrent Energy to create and retain greater value in its
own project development pipeline. The perimeter of the transaction
includes 30 countries, excluding China and Japan.
In June 2024, Recurrent Energy
announced the initial closing of the $500
million investment. The initial closing presents the
majority of the planned capital infusion at $300 million (before transaction costs). Once the
transaction is fully complete, BlackRock's $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.
Project Development Pipeline – Solar
As of June 30, 2024, Recurrent
Energy's total solar project development pipeline was 27.4 GWp,
including 1.7 GWp under construction, 4.8 GWp of backlog, and 20.9
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 June 30, 2024) – MWp*
|
Region
|
In
Construction
|
Backlog
|
Advanced
Pipeline
|
Early-Stage
Pipeline
|
Total
|
North
America
|
261
|
224
|
1,244
|
4,374
|
6,103
|
Europe, the Middle
East, and Africa
("EMEA")
|
783**
|
2,465
|
1,578
|
5,539
|
10,365
|
Latin
America
|
450**
|
486
|
83
|
4,540
|
5,559
|
Asia Pacific excluding
China and Japan
|
-
|
173
|
708
|
1,413
|
2,294
|
China
|
100
|
1,320**
|
-
|
1,390
|
2,810
|
Japan
|
59
|
131
|
-
|
49
|
239
|
Total
|
1,653
|
4,799
|
3,613
|
17,305
|
27,370
|
*All numbers are
gross MWp.
**Including 74 MWp
in construction and 551 MWp in backlog that are owned by or already
sold to third parties.
|
|
|
|
|
|
|
|
Project Development Pipeline – Battery Energy Storage
As of June 30, 2024, Recurrent
Energy's total battery energy storage project development pipeline
was 62.8 GWh, including 8.5 GWh under construction and in backlog,
and 54.3 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
June 30, 2024) – MWh
|
Region
|
In
Construction
|
Backlog
|
Advanced
Pipeline
|
Early-Stage
Pipeline
|
Total
|
North
America
|
1,400
|
600
|
1,580
|
15,444
|
19,024
|
EMEA
|
-
|
1,580
|
4,627
|
26,612
|
32,819
|
Latin
America
|
-
|
1,765
|
-
|
-
|
1,765
|
Asia Pacific excluding
China and Japan
|
444
|
-
|
400
|
1,240
|
2,084
|
China
|
2,000
|
-
|
-
|
2,600
|
4,600
|
Japan
|
-
|
727
|
449
|
1,350
|
2,526
|
Total
|
3,844
|
4,672
|
7,056
|
47,246
|
62,818
|
Projects in Operation – Solar Power and Battery Energy
Storage Power Plants (Including Unconsolidated Projects)
As of June 30, 2024, the solar
power and battery energy storage plants in operation totaled around
1.6 GWp and 1.0 GWh respectively, with a combined estimated net
resale value of approximately $1.2 billion. The estimated net
resale value is based on selling prices that Recurrent Energy is
currently negotiating or comparable asset sales.
Power Plants in
Operation*
|
|
North
America
|
EMEA
|
Latin
America
|
Asia
Pacific
ex. China and
Japan
|
China
|
Japan
|
Total
|
Solar (MWp)
|
163
|
58
|
970
|
6
|
310
|
62
|
1,569
|
Battery Energy
Storage (MWh)
|
280
|
-
|
-
|
24
|
700
|
-
|
1,004
|
|
*All numbers are
net MWp or MWh owned by Recurrent Energy; total
gross MWp of solar projects is 2,621 MWp and
total gross battery
energy storage projects is 2,124 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
|
|
Six Months
Ended
|
|
June
30,
2024
|
March
31,
2024
|
June
30,
2023
|
|
June
30,
2024
|
June
30,
2023
|
Net revenues
|
50,525
|
39,433
|
360,045
|
|
89,958
|
380,097
|
Cost of
revenues
|
26,564
|
26,381
|
201,981
|
|
52,945
|
214,824
|
Gross profit
|
23,961
|
13,052
|
158,064
|
|
37,013
|
165,273
|
Operating
expenses
|
32,877
|
33,573
|
35,874
|
|
66,450
|
58,288
|
Income (loss) from
operations*
|
(8,916)
|
(20,521)
|
122,190
|
|
(29,437)
|
106,985
|
Gross
margin
|
47.4 %
|
33.1 %
|
43.9 %
|
|
41.1 %
|
43.5 %
|
Operating
margin
|
-17.6 %
|
-52.0 %
|
33.9 %
|
|
-32.7 %
|
28.1 %
|
* 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 and Solar System Kits
CSI Solar shipped 8.2 GW of solar modules and solar system kits
to more than 70 countries in the second quarter of 2024. For the
second quarter of 2024, the top five markets ranked by
shipments were China, the U.S.,
Pakistan, Germany, and Brazil.
CSI Solar's revised manufacturing capacity expansion targets are
set forth below.
Solar Manufacturing
Capacity, GW*
|
|
June
2024
Actual
|
September
2024
Plan
|
December
2024
Plan
|
Ingot
|
20.4
|
25.0
|
25.0
|
Wafer
|
28.0
|
31.0
|
31.0
|
Cell
|
48.4
|
48.4
|
48.4
|
Module
|
60.0
|
61.0
|
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 June 30, 2024, e-STORAGE had
a total project turnkey pipeline of around 66 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 June 30, 2024, the
contracted backlog, including contracted long-term service
agreements, was $2.6 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*
|
June
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
|
|
Six Months
Ended
|
|
June 30,
2024
|
March 31,
2024
|
June
30,
2023
|
|
June 30,
2024
|
June
30,
2023
|
Net revenues
|
1,731,470
|
1,342,153
|
2,013,993
|
|
3,073,623
|
3,723,723
|
Cost of
revenues
|
1,441,897
|
1,094,568
|
1,726,154
|
|
2,536,465
|
3,120,275
|
Gross profit
|
289,573
|
247,585
|
287,839
|
|
537,158
|
603,448
|
Operating
expenses
|
196,255
|
165,113
|
168,455
|
|
361,368
|
314,606
|
Income from
operations
|
93,318
|
82,472
|
119,384
|
|
175,790
|
288,842
|
Gross
margin
|
16.7 %
|
18.4 %
|
14.3 %
|
|
17.5 %
|
16.2 %
|
Operating
margin
|
5.4 %
|
6.1 %
|
5.9 %
|
|
5.7 %
|
7.8 %
|
*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
2024
|
% of Net
Revenues
|
|
Q1
2024
|
% of Net
Revenues
|
|
Q2
2023
|
% of Net
Revenues
|
Americas
|
892
|
56
|
|
676
|
53
|
|
722
|
36
|
Asia
|
455
|
29
|
|
417
|
32
|
|
716
|
36
|
Europe and
others
|
238
|
15
|
|
197
|
15
|
|
566
|
28
|
Total
|
1,585
|
100
|
|
1,290
|
100
|
|
2,004
|
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 2024, the Company expects total
revenue to be in the range of $1.6
billion to $1.8 billion. Gross
margin is expected to be between 14% and 16%. Total module
shipments recognized as revenues by CSI Solar are expected to be in
the range of 9.0 GW to 9.5 GW, including approximately 100 MW to
the Company's own projects. Total battery energy storage shipments
by CSI Solar in the third quarter of 2024 are expected to be
between 1.4 GWh to 1.7 GWh, including about 1.2 GWh to the
Company's own projects.
For the full year of 2024, the Company expects total module
shipments to be in the range of 32 GW to 36 GW and CSI Solar's
total battery energy storage shipments in the range of 6.5 GWh to
7.0 GWh, including approximately 1 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 $6.5 billion to
$7.5 billion.
Dr. Shawn Qu, Chairman and
CEO, commented, "While we continue to navigate challenging
market conditions, our focus remains on sustainable, profitable
growth. We are beginning to see signs of market rationalization, as
module pricing and input costs reach record lows. In line with our
commitment to strategic future planning, we are adjusting certain
capacity investments to ensure a resilient financial profile. We
anticipate stabilization in the second half of the year. Although
global economic and political uncertainties will likely persist in
the coming months, we have consistently managed risk effectively
for our shareholders, partners, and customers in the past—and we
remain committed to doing so going forward."
Recent Developments
Canadian Solar
On August 19, 2024, Canadian Solar
announced it had entered into a definitive agreement with PAG,
pursuant to which PAG will subscribe for US$200 million in aggregate principal of
convertible notes due 2029. The transaction is expected to close in
the fourth quarter of 2024, subject to closing conditions. The
Company will retain certain flexibility on drawdowns, using the net
proceeds to optimize its capital structure.
On May 31, 2024, Canadian Solar
announced it had published its 2023 Corporate Sustainability Report
that showcases the Company's ongoing progress and achievements in
its environmental, social, and governance (ESG) initiatives. The
sustainability disclosures in this report are aligned with global
standards set by the SASB (the Sustainability Accounting
Standards Board) and the Global Reporting
Initiative (GRI), with reference to the IFRS (the
International Financial Reporting Standards) set by ISSB
(International Sustainability Standards Board).
CSI Solar
On August 8, 2024, Canadian Solar
announced it had signed a turnkey EPC contract for 100 MW / 200 MWh
energy storage solutions with Fotowatio Renewable Ventures (FRV)
Australia for FRV's Terang energy
storage project in Victoria,
Australia. FRV Australia, part of Jameel Energy and the
Canadian infrastructure fund OMERS, is a leading developer of
sustainable energy solutions. An energy storage supply agreement
and a long-term service agreement had been signed between the
companies. Construction of the project is scheduled to commence in
August 2024.
On July 18, 2024, Canadian Solar
announced it had signed a contract with Root-Power Ltd., part of
YLEM Group, to supply 11 MW AC / 22 MWh AC energy storage solutions
for Root-Power's Coryton Energy Park project located in
Corringham, Essex, England. Construction of the project
started in late May 2024. An energy storage supply agreement
and long-term service agreement had been signed between the
companies.
On July 9, 2024, Canadian Solar
announced it had secured a contract with Aypa Power to deliver a
498 MWh DC standalone battery energy storage system for Aypa's
Bypass Project in Texas. The
project is scheduled for completion in the third quarter of 2025.
After integrating and commissioning the project to commercial
operation, e-STORAGE will provide ongoing operational support for
the project under a long-term service agreement.
On July 8, 2024, Canadian Solar
announced it had secured a contract from Nova Scotia Power to
develop flagship energy storage projects across three locations
in Nova Scotia, Canada: Bridgewater, Waverley,
and White Rock. The projects total 150 MW / 705 MWh DC.
Construction will be completed by the end of 2026, and the first
site is expected to be operational in 2025. e-STORAGE will
provide comprehensive EPC services along with long-term service
agreements.
On June 20, 2024, Canadian Solar
announced it had entered into a partnership agreement with leading
renewable energy supplier Lifestyle Solar Inc. to provide
solar and energy storage solutions to homebuilders
in California. Canadian Solar will offer its new N-type
modules from its factory in Mesquite, TX, and the innovative
stackable EP Cube home battery, enabling Lifestyle Solar's clients
to achieve energy resilience and lower electricity costs.
On June 13, 2024, Canadian Solar
announced it had entered into an agreement
with U.S. homebuilder D.R. Horton to offer its solar and
energy storage products across communities in California. In
its commitment to excellence, D.R. Horton has chosen Canadian
Solar's solar panels and batteries, a testament to the superior
quality of Canadian Solar's products.
Recurrent Energy
On August 6, 2024, Canadian Solar
announced it had completed the sale of an 83 MWp project in the
Dominican Republic to Grupo País
and Acciona Energía. The Pedro Corto solar project, located in
San Juan de la Maguana, is in the
late stage of development.
On July 24, 2024, Canadian Solar
announced it had achieved the financial close on a €50 million loan
from the European Investment Bank. The facility will support
the development and construction of a solar energy portfolio
in Italy.
On July 10, 2024, Canadian Solar
announced it had signed a 10-year power purchase agreement
with GKN Automotive, a global leader in drive systems, for the
annual production of approximately 200 GWh of renewable electricity
produced by Recurrent Energy's 115 MWp Rey I Project located in
Seville, Andalucia, Spain.
Currently under construction, Rey I is expected to be fully
operational by the first half of 2026. Recurrent Energy will own
and operate the project upon completion.
On June 27, 2024, Canadian Solar
announced it had signed a $103
million tax credit facilitation agreement with Bank of
America for its North Fork Solar Project. The 160 MW solar
project, located southwest of Oklahoma City, is now
operational.
On June 20, 2024, Canadian Solar
announced it had secured $513 million
in project financing for its landmark Papago Storage project
located in Maricopa County,
Arizona. Construction of the 1,200 MWh Papago Storage is
slated to commence in the third quarter of 2024, with commercial
operations expected to begin in the second quarter of 2025. This
project holds a 20-year tolling agreement with Arizona Public
Service, and Recurrent Energy will own and operate the project
after construction.
On June 17, 2024, Canadian Solar
announced it had achieved commercial operation on its first
portfolio of Japan's feed-in premium (FIP) PV projects
on June 1, 2024. Toyota Tsusho Corporation entered into a
20-year power purchase agreement with the Company, securing 100% of
the PV power, together with the Non-Fossil Certificates (NFCs)
generated by the project.
On June 10, 2024, Canadian Solar
announced the inauguration of the 446 MWp / 360 MWac Marangatu
Solar Complex in Brasileira, Brazil. SPIC owns 70% of the project, while
Recurrent Energy owns the remaining 30%. Developed by
Recurrent Energy, Marangatu Solar Complex was fully
energized in April 2024. 75% of the energy generated is
secured through long-term power purchase agreements (PPAs).
On June 3, Canadian Solar
announced it had achieved the initial closing and funding of an
investment in Recurrent Energy's platform by BlackRock through a
fund managed by its climate infrastructure business. The initial
closing of the transaction, first announced in January 2024,
was contingent on requisite regulatory approvals and other
conditions, which have now been met.
On May 23, 2024, Canadian Solar
announced it had secured a landmark multi-currency revolving credit
facility valued at up to €1.3 billion with ten banks for the
construction of solar and battery energy storage projects in
several European countries, including Spain, Italy,
the UK, the Netherland, France and
Germany. Initially, the facility
will support the near-term construction of close to 1 GW of solar
capacity, with the vast majority allocated to Spain and
the remainder to the UK.
Conference Call Information
The Company will hold a conference call on Thursday, August 22, 2024, at 8:00 a.m. U.S. Eastern Time (8:00 p.m., Thursday,
August 22, 2024, in Hong
Kong) to discuss its second quarter 2024 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.), +852 800 965 561
(from Hong Kong), +86 400 120 2840 (local dial-in from
Mainland China) or +1-201-389-0920 from international locations.
The conference ID is 13747972. 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, September 5, 2024 (11:00 a.m. September
6, 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 13747972. 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 133 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 approximately 11 GWp of solar
power projects and 3.7 GWh of battery energy storage projects
across the world. Currently, the Company has approximately 1.6 GWp
of solar power projects in operation, 6.5 GWp of projects under
construction or in backlog (late-stage), and an additional 20.9 GWp
of projects in advanced and early-stage pipeline. In addition, the
Company has 1 GWh of battery energy storage projects in operation
and a total battery energy storage project development pipeline of
around 63 GWh, including approximately 8.5 GWh under construction
or in backlog, and an additional 54.3 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 June 30,
2024
|
|
|
(In Thousands of U.S. Dollars, Except
Percentages)
|
|
|
CSI Solar
|
|
Recurrent
Energy
|
|
Elimination
and
unallocated
items (1)
|
|
Total
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
$1,731,470
|
|
$50,525
|
|
$(146,562)
|
|
$1,635,433
|
Cost of
revenues
|
|
1,441,897
|
|
26,564
|
|
(115,122)
|
|
1,353,339
|
Gross profit
|
|
289,573
|
|
23,961
|
|
(31,440)
|
|
282,094
|
Gross margin
|
|
16.7 %
|
|
47.4 %
|
|
—
|
|
17.2 %
|
Income (loss) from
operations (2)
|
|
$ 93,318
|
|
$(8,916)
|
|
$(36,752)
|
|
$47,650
|
|
|
|
|
|
|
|
|
|
Supplementary
|
|
|
|
|
|
|
|
|
Information:
|
|
|
|
|
|
|
|
|
Interest expense
(3)
|
|
$(15,924)
|
|
$(15,289)
|
|
$(1,809)
|
|
$(33,022)
|
Interest income
(3)
|
|
11,037
|
|
3,075
|
|
10
|
|
14,122
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$1,379,591
|
|
$234,023
|
|
$6,223
|
|
$1,619,837
|
Restricted cash –
current and
|
|
571,546
|
|
858
|
|
—
|
|
572,404
|
noncurrent
|
|
|
|
|
|
|
|
|
Non-recourse
borrowings
|
|
—
|
|
781,634
|
|
—
|
|
781,634
|
Other short-term and
long-
|
|
1,778,326
|
|
1,099,669
|
|
—
|
|
2,877,995
|
term
borrowings
|
|
|
|
|
|
|
|
|
Green bonds and
convertible
|
|
—
|
|
146,998
|
|
228,165
|
|
375,163
|
notes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select Financial Data – CSI Solar and Recurrent
Energy
|
|
|
Six Months Ended June 30, 2024
|
|
|
(In Thousands of U.S. Dollars, Except
Percentages)
|
|
|
CSI Solar
|
|
Recurrent
Energy
|
|
Elimination
and
unallocated
items (1)
|
|
Total
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
|
$3,073,623
|
|
$89,958
|
|
$(199,037)
|
|
$2,964,544
|
Cost of
revenues
|
|
2,536,465
|
|
52,945
|
|
(159,713)
|
|
2,429,697
|
Gross profit
|
|
537,158
|
|
37,013
|
|
(39,324)
|
|
534,847
|
Gross margin
|
|
17.5 %
|
|
41.1 %
|
|
—
|
|
18.0 %
|
Income (loss)
from
|
|
$175,790
|
|
$(29,437)
|
|
$(49,631)
|
|
$96,722
|
operations
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary
|
|
|
|
|
|
|
|
|
Information:
|
|
|
|
|
|
|
|
|
Interest expense
(3)
|
|
$(31,633)
|
|
$(29,578)
|
|
$(6,678)
|
|
$(67,889)
|
Interest income
(3)
|
|
42,906
|
|
5,479
|
|
39
|
|
48,424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Select Financial Data – CSI Solar and Recurrent
Energy
|
|
|
Three 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
|
|
$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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
June
30,
2024
|
|
Three Months
Ended
March
31,
2024
|
|
Three Months
Ended
June
30,
2023
|
|
|
(In Thousands of
U.S. Dollars)
|
CSI Solar
Revenues:
|
|
|
|
|
|
|
Solar
modules
|
|
$ 1,207,816
|
|
$ 912,150
|
|
$ 1,722,687
|
Solar system
kits
|
|
114,869
|
|
99,247
|
|
216,867
|
Battery energy storage
solutions
|
|
225,805
|
|
251,473
|
|
14,889
|
EPC and
others
|
|
36,418
|
|
26,808
|
|
49,535
|
Subtotal
|
|
1,584,908
|
|
1,289,678
|
|
2,003,978
|
Recurrent
Energy Revenues:
|
|
|
|
|
|
|
Solar power and
battery energy storage asset
sales
|
|
12,752
|
|
6,044
|
|
338,487
|
Power services
(O&M) and asset
management
|
|
18,644
|
|
15,868
|
|
13,408
|
Electricity revenue
from operating portfolio
and others
|
|
19,129
|
|
17,521
|
|
8,150
|
Subtotal
|
|
50,525
|
|
39,433
|
|
360,045
|
Total net
revenues
|
|
$ 1,635,433
|
|
$ 1,329,111
|
|
$ 2,364,023
|
|
Select Financial
Data - CSI Solar and Recurrent Energy
|
|
Six Months
Ended
June 30,
2024
|
|
Six Months
Ended
June 30,
2023
|
|
(In Thousands of
U.S. Dollars)
|
CSI Solar
Revenues:
|
|
|
|
Solar
modules
|
$ 2,119,966
|
|
$ 3,177,563
|
Solar system
kits
|
214,116
|
|
350,454
|
Battery energy storage
solutions
|
477,278
|
|
29,699
|
EPC and
others
|
63,226
|
|
127,491
|
Subtotal
|
2,874,586
|
|
3,685,207
|
Recurrent
Energy Revenues:
|
|
|
|
Solar PV and battery
energy storage asset
sales
|
18,796
|
|
343,108
|
Power services
(O&M) and asset
management
|
34,512
|
|
22,095
|
Electricity revenue
from operating portfolio
and others
|
36,650
|
|
14,894
|
Subtotal
|
89,958
|
|
380,097
|
Total net
revenues
|
$ 2,964,544
|
|
$ 4,065,304
|
|
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,
|
|
|
2024
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
$ 1,635,433
|
|
$ 1,329,111
|
|
$ 2,364,023
|
|
$ 2,964,544
|
|
$ 4,065,304
|
Cost of
revenues
|
1,353,339
|
|
1,076,358
|
|
1,923,449
|
|
2,429,697
|
|
3,306,729
|
|
Gross
profit
|
282,094
|
|
252,753
|
|
440,574
|
|
534,847
|
|
758,575
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Selling and
distribution
expenses
|
131,692
|
|
88,412
|
|
87,686
|
|
220,104
|
|
176,057
|
|
General and
administrative expenses
|
100,911
|
|
94,693
|
|
139,571
|
|
195,604
|
|
218,219
|
|
Research and
developmentexpenses
|
25,578
|
|
34,279
|
|
23,137
|
|
59,857
|
|
40,444
|
|
Other operating
income,
net
|
(23,737)
|
|
(13,703)
|
|
(33,943)
|
|
(37,440)
|
|
(45,872)
|
Total operating
expenses
|
234,444
|
|
203,681
|
|
216,451
|
|
438,125
|
|
388,848
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
47,650
|
|
49,072
|
|
224,123
|
|
96,722
|
|
369,727
|
Other income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(33,022)
|
|
(34,867)
|
|
(30,455)
|
|
(67,889)
|
|
(50,903)
|
|
Interest
income
|
14,122
|
|
34,302
|
|
9,456
|
|
48,424
|
|
17,412
|
|
Gain (loss) on change
in
fair value of derivatives,
net
|
81
|
|
(16,694)
|
|
(23,775)
|
|
(16,613)
|
|
(16,174)
|
|
Foreign exchange
gain,
net
|
12,486
|
|
12,913
|
|
57,532
|
|
25,399
|
|
36,672
|
|
Investment income
(loss),
net
|
(835)
|
|
169
|
|
1,955
|
|
(666)
|
|
10,335
|
Total other
income
(expenses)
|
(7,168)
|
|
(4,177)
|
|
14,713
|
|
(11,345)
|
|
(2,658)
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
and equity in earnings of
affiliates
|
40,482
|
|
44,895
|
|
238,836
|
|
85,377
|
|
367,069
|
Income tax
expense
|
(5,283)
|
|
(9,677)
|
|
(46,019)
|
|
(14,960)
|
|
(74,734)
|
Equity in earnings
(losses) of affiliates
|
(7,775)
|
|
1,005
|
|
4,719
|
|
(6,770)
|
|
12,030
|
Net
income
|
27,424
|
|
36,223
|
|
197,536
|
|
63,647
|
|
304,365
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to non-
controlling interests and redeemable non-
controlling interest
|
23,602
|
|
23,871
|
|
27,566
|
|
47,473
|
|
50,683
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to
Canadian Solar Inc.
|
$
3,822
|
|
$
12,352
|
|
$
169,970
|
|
$
16,174
|
|
$
253,682
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
$ 0.02
|
|
$ 0.19
|
|
$
2.62
|
|
$ 0.21
|
|
$
3.92
|
Shares used in
computation -
basic
|
66,413,750
|
|
66,164,560
|
|
64,912,928
|
|
66,289,155
|
|
64,716,522
|
Earnings per share
-
diluted
|
$ 0.02
|
|
$ 0.19
|
|
$
2.39
|
|
$ 0.21
|
|
$
3.58
|
Shares used in
computation -
diluted
|
66,984,783
|
|
66,642,725
|
|
71,689,925
|
|
66,813,754
|
|
71,571,041
|
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,
|
|
2024
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Net
Income
|
$
27,424
|
|
$
36,223
|
|
$
197,536
|
|
$
63,647
|
|
$
304,365
|
Other comprehensive
income (loss):
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation
adjustment
|
(59,897)
|
|
(53,813)
|
|
(68,507)
|
|
(113,710)
|
|
(45,257)
|
Gain (loss) on changes
in fair
value of available-for-sale debt
securities, net of tax
|
769
|
|
880
|
|
(1,050)
|
|
1,649
|
|
(711)
|
Gain (loss) on interest
rate
swap, net of tax
|
(481)
|
|
965
|
|
(67)
|
|
484
|
|
(172)
|
Share of gain (loss) on
changes
in fair value of derivatives of
affiliate, net of tax
|
(159)
|
|
1,134
|
|
503
|
|
975
|
|
(107)
|
Comprehensive income
(loss)
|
(32,344)
|
|
(14,611)
|
|
128,415
|
|
(46,955)
|
|
258,118
|
Less: comprehensive
income
attributable to non-controlling
interests and redeemable non-
controlling interest
|
15,637
|
|
20,337
|
|
3,690
|
|
35,974
|
|
28,852
|
Comprehensive income
(loss)
attributable to Canadian Solar
Inc.
|
$
(47,981)
|
|
$
(34,948)
|
|
$124,725
|
|
$
(82,929)
|
|
$ 229,266
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Solar Inc.
|
|
Unaudited Condensed Consolidated Balance
Sheets
|
(In Thousands of
U.S. Dollars)
|
|
|
|
June
30,
|
|
December 31,
|
|
|
|
|
2024
|
|
2023
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$ 1,619,837
|
|
$ 1,938,689
|
|
|
Restricted
cash
|
|
562,427
|
|
999,933
|
|
|
Accounts receivable
trade, net
|
|
1,019,370
|
|
904,943
|
|
|
Accounts receivable,
unbilled
|
|
164,226
|
|
101,435
|
|
|
Amounts due from
related parties
|
|
35,215
|
|
40,582
|
|
|
Inventories
|
|
1,204,986
|
|
1,179,641
|
|
|
Value added tax
recoverable
|
|
171,859
|
|
162,737
|
|
|
Advances to suppliers,
net
|
|
172,408
|
|
193,818
|
|
|
Derivative
assets
|
|
5,613
|
|
9,282
|
|
|
Project
assets
|
|
555,555
|
|
280,793
|
|
|
Prepaid expenses and
other current assets
|
|
268,433
|
|
283,600
|
|
Total current
assets
|
|
5,779,929
|
|
6,095,453
|
|
Restricted
cash
|
|
9,977
|
|
7,810
|
|
Property, plant and
equipment, net
|
|
3,079,646
|
|
3,088,442
|
|
Solar power systems,
net
|
|
1,266,529
|
|
951,513
|
|
Deferred tax assets,
net
|
|
314,200
|
|
263,458
|
|
Advances to suppliers,
net
|
|
231,298
|
|
132,218
|
|
Investments in
affiliates
|
|
227,703
|
|
236,928
|
|
Intangible assets,
net
|
|
33,923
|
|
19,727
|
|
Project
assets
|
|
688,648
|
|
576,793
|
|
Right-of-use
assets
|
|
226,517
|
|
237,007
|
|
Amounts due from
related parties
|
|
38,668
|
|
32,313
|
|
Other non-current
assets
|
|
239,899
|
|
254,098
|
|
TOTAL
ASSETS
|
|
$
12,136,937
|
|
$
11,895,760
|
|
|
|
|
|
|
|
|
|
Canadian Solar
Inc.
|
|
Unaudited Condensed
Consolidated Balance Sheets (Continued)
|
|
(In Thousands of
U.S. Dollars)
|
|
|
June
30,
|
|
December
31,
|
|
|
2024
|
|
2023
|
|
LIABILITIES,
REDEEMABLE NON-
CONTROLLING INTEREST AND EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
borrowings
|
$ 2,036,003
|
|
$ 1,805,198
|
|
|
Accounts
payable
|
842,105
|
|
813,677
|
|
|
Short-term notes
payable
|
765,511
|
|
878,285
|
|
|
Amounts due to related
parties
|
3,629
|
|
511
|
|
|
Other
payables
|
1,179,390
|
|
1,359,679
|
|
|
Advances from
customers
|
274,051
|
|
392,308
|
|
|
Derivative
liabilities
|
1,387
|
|
6,702
|
|
|
Operating lease
liabilities
|
18,006
|
|
20,204
|
|
|
Other current
liabilities
|
458,808
|
|
587,827
|
|
Total current
liabilities
|
5,578,890
|
|
5,864,391
|
|
Long-term
borrowings
|
1,623,626
|
|
1,265,965
|
|
Green bonds and
convertible notes
|
375,163
|
|
389,033
|
|
Liability for uncertain
tax positions
|
5,847
|
|
5,701
|
|
Deferred tax
liabilities
|
88,624
|
|
82,828
|
|
Operating lease
liabilities
|
113,331
|
|
116,846
|
|
Other non-current
liabilities
|
491,554
|
|
465,752
|
|
TOTAL
LIABILITIES
|
8,277,035
|
|
8,190,516
|
|
|
|
|
|
|
Redeemable
non-controlling interest
|
$ 72,785
|
|
$ —
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Common
shares
|
835,543
|
|
835,543
|
|
|
Additional paid-in
capital
|
470,628
|
|
292,737
|
|
|
Retained
earnings
|
1,565,881
|
|
1,549,707
|
|
|
Accumulated other
comprehensive loss
|
(215,620)
|
|
(118,744)
|
|
Total Canadian Solar
Inc. shareholders'
equity
|
2,656,432
|
|
2,559,243
|
|
Non-controlling
interests
|
1,130,685
|
|
1,146,001
|
|
TOTAL
EQUITY
|
3,787,117
|
|
3,705,244
|
|
TOTAL LIABILITIES,
REDEEMABLE NON-
CONTROLLING INTEREST AND EQUITY
|
$
12,136,937
|
|
$
11,895,760
|
|
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,
|
|
2024
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Operating
Activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
$ 27,424
|
|
$ 36,223
|
|
$ 197,536
|
|
$ 63,647
|
|
$ 304,365
|
Adjustments to
reconcile net
income to net cash provided by
operating activities
|
174,201
|
|
158,350
|
|
190,634
|
|
332,551
|
|
258,372
|
Changes in operating
assets
and liabilities
|
(630,963)
|
|
(486,060)
|
|
(98,611)
|
|
(1,117,023)
|
|
(226,006)
|
Net cash provided by
(used in)
operating activities
|
(429,338)
|
|
(291,487)
|
|
289,559
|
|
(720,825)
|
|
336,731
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities:
|
|
|
|
|
|
|
|
|
|
Purchase of property,
plant and
equipment
|
(390,248)
|
|
(266,462)
|
|
(283,065)
|
|
(656,710)
|
|
(516,097)
|
Purchase of solar
power
systems
|
(10,936)
|
|
(173,341)
|
|
(36,329)
|
|
(184,277)
|
|
(146,195)
|
Other investing
activities
|
2,515
|
|
6,832
|
|
(17,927)
|
|
9,347
|
|
(29,010)
|
Net cash used in
investing
activities
|
(398,669)
|
|
(432,971)
|
|
(337,321)
|
|
(831,640)
|
|
(691,302)
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities:
|
|
|
|
|
|
|
|
|
|
Net proceeds from sale
of
subsidiary's redeemable
preferred shares
|
297,000
|
|
—
|
|
—
|
|
297,000
|
|
—
|
Payments for
repurchase of
subsidiary's ordinary shares
|
(70,624)
|
|
—
|
|
—
|
|
(70,624)
|
|
—
|
Net proceeds from
subsidiary's
public offering of ordinary shares
|
—
|
|
—
|
|
803,645
|
|
—
|
|
803,645
|
Other financing
activities
|
(38,778)
|
|
723,412
|
|
547,492
|
|
684,634
|
|
927,241
|
Net cash provided by
financing
activities
|
187,598
|
|
723,412
|
|
1,351,137
|
|
911,010
|
|
1,730,886
|
Effect of exchange rate
changes
|
(61,483)
|
|
(51,253)
|
|
(128,769)
|
|
(112,736)
|
|
(95,679)
|
Net increase (decrease)
in cash,
cash equivalents and restricted cash
|
(701,892)
|
|
(52,299)
|
|
1,174,606
|
|
(754,191)
|
|
1,280,636
|
Cash, cash
equivalents and
restricted cash at the beginning
of the period
|
$
2,894,133
|
|
$
2,946,432
|
|
$
2,075,533
|
|
$
2,946,432
|
|
$
1,969,503
|
Cash, cash
equivalents and
restricted cash at the end of the
period
|
$
2,192,241
|
|
$
2,894,133
|
|
$
3,250,139
|
|
$
2,192,241
|
|
$
3,250,139
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/canadian-solar-reports-second-quarter-2024-results-302228478.html
SOURCE Canadian Solar Inc.