GUELPH, ON, May 24, 2022 /PRNewswire/ -- Canadian Solar
Inc. ("Canadian Solar" or the "Company") (NASDAQ: CSIQ) today
announced financial results for the first quarter ended
March 31, 2022.
Highlights
- Solar module shipments of 3.63 GW, in line with guidance of 3.6
GW to 3.8 GW.
- 15% increase in revenue year-over-year ("yoy") to $1.25 billion, in line with guidance of
$1.25 billion to $1.35 billion.
- 14.5% gross margin, in line with guidance of 14.5% to
15.5%.
- Net income attributable to Canadian Solar of $9 million, or $0.14 per diluted share.
- Global Energy solar project pipeline of 24 GWp and storage
pipeline of over 27 GWh, as of March
2022.
- Carve-out IPO of CSI Solar Co., Ltd. ("CSI Solar" or the "CSI
Solar subsidiary") remains on track.
- Accelerating upstream capacity expansion plan.
Dr. Shawn Qu, Chairman and
CEO, commented, "First quarter 2022 shipments, revenue and
gross margin all came in as expected, despite the challenging
operating environment. Our teams continued to focus on executing
the strategy of building our long-term competitive position across
solar module, battery storage, system solutions and global project
development businesses. Today we are announcing an acceleration of
our upstream capacity expansion plan for 2022 with the latest
state-of-the-art technologies. This will meaningfully increase the
vertical integration level of our manufacturing capacity and
solidify our global leadership position. In this process, we expect
to gain better control of cost, technology and product quality. At
the same time, we are growing our battery storage business, winning
contracts in new markets and segments, while continuing our
development of proprietary battery storage technologies for both
utility-scale and residential solutions.
"Regarding the carve-out IPO of CSI Solar, despite the slowdown
caused by severe COVID-related lockdowns in China, its registration process with the China
Securities Regulatory Commission remains on track."
Yan Zhuang, President of
Canadian Solar's CSI Solar subsidiary, said, "While the first
quarter was challenging, as we expected, with polysilicon price
cost inflation coming back, we took mitigating measures by
continuing to raise prices and optimize capacity utilization,
improve product efficiencies, and further reduce our processing
costs. Despite the headwinds, we grew CSI Solar revenue by 74% and
gross profit by 161% yoy. While it is still early into 2022, we are
encouraged to see logistic costs starting to come down, albeit from
a high level, and currencies starting to move in our favor after
two years of headwinds. Longer term, with demand for renewable
energy expected to remain as strong as ever, we will continue to
build on our strong brand and track record, gain market share in
established markets and enter new and rapidly growing markets."
Ismael Guerrero, Corporate VP
and President of Canadian Solar's Global Energy subsidiary,
said, "In the first quarter of 2022, we delivered approximately 350
MWp of project sales in the U.S., which were mostly
pre-construction projects. We also made significant progress in our
development activities, signing new power purchase agreements
("PPAs") in Brazil, Italy and the U.S. In the current inflationary
environment, underlying demand for clean energy assets continues to
accelerate. Our strategy remains unchanged, that is to grow the
base of recurring revenue from retained assets and contracted
services, which is why we have raised our long-term operational
O&M (operations and maintenance) project targets, while
proactively managing policy and currency risks across our key
markets."
Dr. Huifeng Chang, Senior VP
and CFO, added, "In the first quarter, we achieved $1.25 billion in revenue and a 14.5% gross
margin, both within our guidance range. We strategically increased
our inventories of raw materials as well as finished goods, as we
support customer demand and work to mitigate the impact of
inflation. Net cash provided by operating activities in the first
quarter of 2022 was $159 million, compared to net cash used in
operating activities of $235 million in the fourth quarter of
2021. We ended the quarter with a total cash position of
$1.7 billion, which gives us
continued financial flexibility to fund long-term growth
opportunities, including accelerating our upstream capacity
expansion."
First Quarter 2022 Results
Total module shipments recognized as revenues in the first
quarter of 2022 were 3.63 GW, up 42% yoy. Of the total, 156
MW were shipped to the Company's own utility-scale solar
power projects.
Net revenues in the first quarter of 2022 were $1.25 billion, up 15% yoy and down 18%
quarter-over-quarter ("qoq"). The yoy increase was mainly
driven by higher solar shipment volumes and ASP, and significant
growth in the Company's battery storage solutions business,
partially offset by lower project sales. The sequential decrease
was mainly driven by lower project sales.
Gross profit in the first quarter of 2022 was $181 million, down 7% yoy and 40% qoq. Gross
margin in the first quarter of 2022 was 14.5%, within prior
guidance, and compared to 19.7% in the fourth quarter of 2021. The
sequential gross margin decline was mainly driven by higher raw
material costs and the absence of U.S. anti-dumping and
countervailing duty true up benefit in the current quarter relative
to the prior quarter, which was partially offset by higher modules
pricing and higher margin project sales.
Total operating expenses in the first quarter of 2022 were
$165 million compared to $234
million in the fourth quarter of 2021 and $151 million in the first quarter of
2021. The sequential decrease was mainly driven by lower
shipping and handling expenses and an increase in other operating
income.
Non-cash depreciation and amortization charges in the first
quarter of 2022 were $66
million, compared to $76
million in the fourth quarter of 2021 and $62 million in the first quarter of 2021.
Net foreign exchange gain in the first quarter of 2022 was
$3 million, compared to a net gain of $1 million in the fourth quarter of
2021 and a net loss of $7
million in the first quarter of 2021.
Income tax benefit in the first quarter of 2022 was
$5 million, compared to a $27 million income tax expense
in the fourth quarter of 2021 and a $14 million income tax expense in the first
quarter of 2021. The benefit was a result of a lower income
before income tax and a Canadian tax refund.
Net income attributable to Canadian Solar in the first quarter
of 2022 was $9 million, or
$0.14 per diluted share, compared to
net income of $26 million, or
$0.39 per diluted share, in the
fourth quarter of 2021, and net income of $23 million, or $0.36 per diluted share, in the first quarter of
2021.
For the three months ended March 31,
2022, earnings per share – diluted ("Diluted EPS") of
$0.14 was calculated from total
earnings of $9 million divided by
64.7 million diluted shares. For the three months ended
December 31, 2021, Diluted EPS of
$0.39 was calculated from total
earnings of $27 million, including
2.5% coupon of $1.3 million, divided
by 70.5 million diluted shares, including 6.3 million shares
issuable upon the conversion of the convertible notes. For the
three months ended March 31, 2021,
Diluted EPS of $0.36 was calculated
from total earnings of $23 million,
including 2.5% coupon of $1.3
million, divided by 67.5 million diluted shares, including
6.3 million shares issuable upon the conversion of the convertible
notes.
Net cash provided by operating activities in the first quarter
of 2022 was $159 million, compared to net cash used in
operating activities of $235 million in the fourth quarter of
2021. The operating cash inflow was mainly driven by changes in
working capital, specifically, an increase in accounts payable and
short-term notes payable, partially offset by an increase in
inventories.
Total debt was $2.7 billion as of
March 31, 2022, compared to
$2.5 billion as of December 31, 2021. The increase was mainly driven
by an increase in project financing and working capital facilities.
Non-recourse debt used to finance solar power projects increased to
$550 million as of March 31,
2022, from $515 million as of December 31, 2021.
Corporate Structure
The Company has two business segments: CSI Solar and Global
Energy. From November 2021, the
Company completed the transfer of the China Energy assets from CSI
Solar to the Global Energy segment to avoid any potential
competition between the Company and its CSI Solar subsidiary, as
part of the CSI Solar carve-out listing process.
As such, the Company's business segments are as follows:
The Global Energy segment includes all of the Company's
global project development activities for both solar and battery
storage project development. The Global Energy segment develops
both stand-alone solar and stand-alone battery storage projects, as
well as hybrid solar plus storage projects. Its monetization
strategies vary between develop-to-sell, build-to-sell, and
build-to-own, depending on business strategies and market
conditions, with the goal of maximizing returns, accelerating cash
turn, and minimizing capital risk.
The CSI Solar segment consists of solar module
manufacturing and total system solutions, including inverters,
solar system kits and EPC (engineering, procurement and
construction) services. The CSI Solar segment also includes the
Company's battery storage integration business, delivering
bankable, end-to-end, turnkey battery storage solutions for utility
scale, commercial and industrial, and residential applications.
These storage systems solutions are complemented with long-term
service agreements, including future battery capacity augmentation
services.
The distinction of the two battery storage businesses is that
the former, Global Energy, is in the project development business,
including sourcing land, interconnection, structuring PPAs and
other permits and requirements for battery storage projects,
whereas the latter, CSI Solar, is in the system
integration business, delivering turnkey battery storage technology
solutions.
Global Energy Segment
Canadian Solar has one of the world's largest and most
geographically diversified utility-scale solar and energy storage
project development platforms, with a strong track record of
originating, developing, financing, and building over 6.6 GWp of
solar power plants across six continents. The Company has built a
leadership position in solar project development with 24 GWp total
pipeline, as well as in energy storage project development with
over 27 GWh of aggregate pipeline.
The continued pipeline expansion and strong project development
track record will support Global Energy's growth in three key
areas:
- Project sales: The Company plans to grow its volume of
project sales by a compound annual growth rate of approximately 50%
to 2026, while holding and accumulating assets through investment
vehicles (see below) in order to better capture asset value.
- Investment vehicles: The Company is optimizing its
project monetization strategy by establishing local investment
vehicles that will help maximize the value of its project assets.
The Company also intends to retain minority ownership in these
vehicles. By 2026, the Company plans to reach 1.3 GW of combined
net ownership in solar power projects through these vehicles. This
approach will help the Company build and grow a stable base of
long-term cash flows from contracted electricity. The Company plans
to recycle a large portion of the capital into developing new solar
projects for growth. Meanwhile, Canadian Solar expects to capture
additional operational value throughout the partial ownership
period, including long-term cash flows from power sales, O&M,
asset management and other services (see point 3). The Company
currently owns a 15% stake in the Canadian Solar Infrastructure
Fund ("CSIF", TSE: 9284), the largest Japanese infrastructure
fund listed on the Tokyo Stock Exchange, and has also
established the CSFS Fund I, a closed-ended alternative investment
fund of a similar nature in Italy.
Through launching these localized vehicles, Canadian Solar is
building up its expertise in designing investment vehicles in local
markets that will help maximize the value of its project
assets.
- Services: Canadian Solar currently manages over 2 GW of
operational projects under long-term O&M agreements, and an
additional 2 GW of contracted projects that will be operated and
maintained by the Company once they are placed in operation. The
Company's target is to reach 20 GW of projects under O&M
agreements by 2026.
Management targets to achieve the following over the next few
years:
Global Energy
Targets
|
2021A
|
2022E
|
2023E
|
2024E
|
2025E
|
2026E
|
Annual Project Sales,
GWp
|
2.1
|
2.1-2.6
|
2.8-3.3
|
3.5-4.0
|
4.0-4.5
|
4.3-4.8
|
Operational O&M
Projects, GWp
|
2.1
|
4.5
|
7.5
|
11
|
15
|
20
|
Net Cumulative
Projects Retained, MWp*
|
292
|
370
|
630
|
1,000
|
1,100
|
1,300
|
Gross Cumulative
Projects Retained, MWp*
|
748
|
1,500
|
2,580
|
3,500
|
4,000
|
5,000
|
*Net projects retained represents CSIQ's net partial
ownership of solar projects; the gross number represents the
aggregate gross size of projects, including the share which is not
owned by CSIQ.
Solar Project Pipeline
As of March 31, 2022, the
Company's total project pipeline was 23.8 GWp, including 1.1 GWp
under construction, 4.2 GWp of backlog, and 18.5 GWp of earlier
stage pipeline.
Backlog projects are late-stage projects that
have passed their Risk Cliff Date and are expected to be built 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
PPAs. Over 90% of projects in backlog are contracted (i.e., have
secured a PPA or FIT), and the remaining are reasonably assured of
securing PPAs.
Pipeline projects are early- to mid-stage project
opportunities currently under development that are yet to be
de-risked.
The following table presents the Company's total project
pipeline.
|
Total Project
Pipeline (as of March 31, 2022) – MWp*
|
Region
|
In
Construction
|
Backlog
|
Pipeline
|
Total
|
North
America
|
115
|
472
|
7,641
|
8,228
|
Latin
America
|
841**
|
2,536
|
3,393
|
6,770
|
Europe, the Middle
East and Africa ("EMEA")
|
15
|
277
|
4,523
|
4,815
|
Japan
|
161
|
175
|
72
|
408
|
Asia Pacific
excluding Japan and China
|
3
|
188
|
1,795
|
1,986
|
China
|
-
|
550
|
1,070
|
1,620
|
Total
|
1,135
|
4,198
|
18,494
|
23,827
|
*All numbers are
gross MWp.
**Including 403
MWp in construction already sold to third parties.
|
The Company has 336 MWp of FIT projects in Japan. The table below sets forth the expected
COD schedule of the Company's project backlog in development and
construction in Japan, as of
March 31, 2022:
Expected COD Schedule – MWp
|
2022
|
|
2023
|
|
2024 and
thereafter
|
|
Total
|
|
136
|
|
52
|
|
148
|
|
336
|
Battery Storage Project Pipeline
The Global Energy segment has been actively developing
utility-scale solar plus energy storage projects, as well as
stand-alone battery storage projects. Since the first quarter of
2021, the Company has been co-hosting energy storage facilities
with solar power plants on the same piece of land for nearly all
projects under development. By using one interconnection point per
project, the Company expects to significantly enhance the
efficiency of its development and the value of its assets under
development.
In addition, Canadian Solar has already signed several storage
tolling agreements with a variety of power purchasers, including
community choice aggregators, investor-owned utilities,
universities, and public utility districts. The Company has also
signed development services agreements to retrofit operational
solar projects with battery storage, many of which were previously
developed by the Company.
The table below sets forth Global Energy's storage project
development backlog and pipeline.
Storage Project Development Backlog
and Pipeline (as of March 31, 2022) –
MWh
|
Region
|
In
Construction
|
Backlog
|
Pipeline
|
Total
|
North
America
|
1,400
|
-
|
15,479
|
16,879
|
Latin
America
|
-
|
1,050
|
2,860
|
3,910
|
EMEA
|
-
|
56
|
2,617
|
2,673
|
Japan
|
-
|
-
|
19
|
19
|
Asia Pacific,
excluding Japan and China
|
20
|
-
|
2,280
|
2,300
|
China
|
-
|
300
|
1,400
|
1,700
|
Total
|
1,420
|
1,406
|
24,655
|
27,481
|
|
Solar Power Plants and Battery Storage Projects in
Operation
As of March 31, 2022, the
Company's solar power plants in operation totaled 800 MWp, with a
combined estimated net resale value of approximately
$580 million to Canadian Solar. The estimated resale value is
based on selling prices that Canadian Solar is currently
negotiating or comparable asset sales.
Solar Power Plants
in Operation – MWp*
|
Latin
America
|
Japan
|
Asia
Pacific
ex. Japan and
China
|
China
|
Total
|
316
|
43
|
359
|
82
|
800
|
*All numbers are gross MWp, including 196 MWp in Latin America and 2 MWp in
Asia Pacific ex. Japan and China already sold to third parties.
Operating Results
The following table presents unaudited select results of
operations data of the Global Energy segment for the periods
indicated.
Global Energy
Segment Financial Results
(In Thousands of
U.S. Dollars, Except Percentages)
|
|
Three Months
Ended
|
|
March 31,
2022
|
December
31,
2021
|
March 31,
2021
|
Net
revenues
|
92,966
|
232,418
|
471,062
|
Cost of
revenues
|
75,130
|
224,359
|
358,037
|
Gross
profit
|
17,836
|
8,059
|
113,025
|
Operating
expenses
|
18,847
|
22,787
|
27,944
|
Income (loss) from
operations*
|
(1,011)
|
(14,728)
|
85,081
|
Gross
margin
|
19.2%
|
3.5%
|
24.0%
|
Operating
margin
|
-1.1%
|
-6.3%
|
18.1%
|
* 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
CSI Solar's 2022 capacity expansion targets are detailed
below.
Manufacturing Capacity, GW*
|
Dec. 2021
Actual
|
Jun. 2022
Plan
|
Dec. 2022
Plan
|
Ingot
|
5.4
|
5.4
|
20.4
|
Wafer
|
11.5
|
11.5
|
20.0
|
Cell
|
13.9
|
13.9
|
19.8
|
Module
|
23.9
|
27.9
|
32.0
|
*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 unaudited select 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,
2022
|
December
31,
2021
|
March 31,
2021
|
Net
revenues
|
1,209,994
|
1,343,278
|
695,152
|
Cost of
revenues
|
1,034,165
|
1,056,750
|
627,694
|
Gross
profit
|
175,829
|
286,528
|
67,458
|
Operating
expenses
|
143,931
|
204,969
|
120,126
|
Income (loss) from
operations
|
31,898
|
81,559
|
(52,668)
|
Gross
margin
|
14.5%
|
21.3%
|
9.7%
|
Operating
margin
|
2.6%
|
6.1%
|
-7.6%
|
*Includes effects of both
sales to third-party customers and to
the Company's Global Energy
segment. Please refer
to the attached financial tables for intercompany transaction
elimination information. Income (loss) 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
2022
|
% of Net
Revenues
|
|
Q4
2021
|
% of Net
Revenues
|
|
Q1
2021
|
% of Net
Revenues
|
Asia
|
473
|
41
|
|
546
|
42
|
|
240
|
39
|
Americas
|
453
|
39
|
|
493
|
38
|
|
261
|
42
|
Europe and
others
|
231
|
20
|
|
257
|
20
|
|
117
|
19
|
Total
|
1,157
|
100
|
|
1,296
|
100
|
|
618
|
100
|
*Excludes sales
from CSI Solar to Global Energy.
|
CSI Solar shipped 3.6 GW of modules to more than
70 countries in the first quarter of 2022. The top five
markets ranked by shipments were China, Brazil, India, the U.S. and Germany.
Battery Storage Solutions
Within CSI Solar, the battery storage solutions team provides
customers with competitive turnkey, integrated battery storage
solutions, including bankable and fully wrapped capacity and
performance guarantees. These guarantees are complemented with
long-term service agreements, which include future battery capacity
augmentation services and bring in long-term, stable income.
The table below sets forth CSI Solar's battery storage system
integration's project pipeline as of March 31, 2022.
|
LTSA (Long
Term Service
Agreement)
|
Contracted/
In
Construction
|
Forecast
|
Pipeline
|
Total
|
Storage
(MWh)
|
861
|
1,572
|
340
|
4,399
|
7,172
|
LTSA projects are operational battery storage projects delivered
by CSI Solar that are under multi-year long-term service agreements
and generate recurring earnings. Contracted/in construction
projects are expected to be delivered within the next 12 to 18
months. Forecast projects include those that have more than 75%
probability of being contracted within the next 12 months, and the
remaining pipeline includes projects that have been identified but
have a below 75% probability of being contracted.
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, 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, the global impact of the ongoing COVID-19 pandemic, and
geopolitical conflicts. Management's views and estimates are
subject to change without notice.
For the second quarter of 2022, the Company expects total module
shipments to be in the range of 4.9 GW to 5.1 GW, including
approximately 150 MW to the Company's own projects. Going forward,
shipment guidance will be based on total shipments recognized as
revenues by CSI Solar, which includes both third party and
Global Energy shipments. Total revenues are expected to be in the
range of $2.2 billion to $2.3 billion. Gross margin is expected to be
between 14.5% and 15.5%.
Company guidance for full year 2022 remains unchanged with the
following ranges: total module shipments of 20 GW to 22 GW, battery
storage shipments of 1.8 GWh to 1.9 GWh, total project sales of 2.1
GW to 2.6 GW and total revenue of $7.0
billion to $7.5 billion.
Dr. Shawn Qu, Chairman and
CEO, commented, "We expect to drive higher revenue in the
second quarter led by higher volumes in solar module and battery
storage shipments, and project sales. Additionally, we expect the
net effect from currency fluctuations to be positive on our overall
profitability, while partially offset by higher material costs. We
continue to leverage our global leadership position in sustainable
growth areas, including the greenfield battery storage market, as
we focus on profitable growth and building shareholder value."
Recent Developments
On May 17, 2022, Canadian Solar
announced its wholly owned subsidiary Canadian Solar Projects K.K.,
together with its owned special purpose vehicles, topped the
ranking of cumulative capacity of solar projects awarded under
Japan's FIT auction program since
its launch in 2017, according to the latest research published by
Clean Tech Lab, Nikkei BP Intelligence Group.
On May 10, 2022, Canadian Solar
announced that DNV recognized Canadian Solar's 210 mm cell based
Hiku7 and BiHiKu7 modules, with power output of up to 670W, are
highly reliable, of top quality and with 3% lower LCOE (levelized
cost of energy) after DNV conducted a comprehensive review of the
said modules, assessing them on production process, performance,
reliability and LCOE performance. DNV is a world leading
independent third-party expert in product certification, risk
management and assurance.
On May 9, 2022, Canadian Solar
announced it entered the utility scale energy storage market in the
United Kingdom after signing
agreements to provide integrated energy storage systems and EPC
services for four battery storage projects of more than 100 MWh.
Pulse Clean Energy is the owner of the four projects.
On May 3, 2022, Canadian Solar
announced its wholly owned subsidiary Recurrent Energy received
approval from the Louisiana Public Service Commission for a PPA for
the 132 MWdc / 98 MWac Bayou Galion solar project in Louisiana. 1803 Electric Cooperative is energy
off-taker of the project.
On April 7, 2022, Canadian Solar
announced its wholly owned subsidiary Recurrent Energy signed an
agreement to sell the Gaskell West 2 and 3 project of 105 MWac
solar plus 80 MWh energy storage to Matrix Renewables. This solar
plus storage project is expected to reach commercial
operation in late 2022. Canadian Solar's majority-owned
subsidiary CSI Solar will provide the turnkey battery storage
solution for the 80 MWh storage part of the project.
On March 15, 2022, Canadian Solar
announced it started mass production and shipments of new 54-cell
format modules with 182 mm cell for residential, commercial and
industrial rooftop solar systems. CS6R-MS, the new module type
under the HiKu6 series, has power output of up to 420 W and module
efficiency of up to 21.5%.
Conference Call Information
The Company will
hold a conference call at 8:00 a.m.
U.S. Eastern Daylight Time on Tuesday, May
24, 2022 (8:00 p.m.,
Tuesday, May 24, 2022 in Hong Kong) to discuss its first quarter 2022
results and business outlook. The dial-in phone number for the live
audio call is +1-833-239-5565 (toll-free from the U.S.),
+852-3018-6771 (local dial-in from Hong
Kong), 400-8205-286 (local dial-in from Mainland China) or
+1-332-208-9468 / +65-6713-5590 from international locations. The
passcode for the call is 2656116. A live webcast of the conference
call will also be available on the investor relations section of
Canadian Solar's website at www.canadiansolar.com
A replay of the call will be available 2 hours after the
conclusion of the call until 9:00
a.m. U.S. Eastern Daylight Time on Wednesday, June 1, 2022 (9:00 p.m., June 1,
2022 in Hong Kong) and can
be accessed by dialing +1-855-452-5696 (toll-free from the U.S.),
+852-3051-2780 (local dial-in from Hong
Kong), 400-8209-035 (toll-free from Mainland China) or
+1-646-254-3697 from international locations. The passcode for the
replay is 2656116. A webcast replay will also be available on the
investor relations section of Canadian Solar's website at
www.canadiansolar.com.
About Canadian Solar Inc.
Canadian Solar was founded in 2001 in Canada and is one of the world's largest solar
technology and renewable energy companies. It is a leading
manufacturer of solar photovoltaic modules, provider of solar
energy and battery storage solutions, and developer of
utility-scale solar power and battery storage projects with a
geographically diversified pipeline in various stages of
development. Over the past 20 years, Canadian Solar has
successfully delivered around 71 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 6.6 GWp in over 20
countries across the world. Currently, the Company has 800 MWp of
projects in operation, 5.3 GWp of projects under construction or in
backlog (late-stage), and an additional 18.5 GWp of projects in
pipeline (mid- to early- stage). 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, and CSI Solar's forecast operating
income and net profit, are forward-looking statements that involve
a number of risks and uncertainties that could cause actual results
to differ materially. These statements are made under the "Safe
Harbor" provisions of the U.S. Private Securities Litigation Reform
Act of 1995. In some cases, you can identify forward-looking
statements by such terms as "believes," "expects," "anticipates,"
"intends," "estimates," the negative of these terms, or other
comparable terminology. Factors that could cause actual results to
differ include general business, regulatory and economic conditions
and the state of the solar and battery storage market and industry;
geopolitical tensions and conflicts, including impasses, sanctions
and export controls; volatility, uncertainty, delays and
disruptions related to the COVID-19 pandemic; supply chain
disruptions; governmental support for the deployment of solar
power; future available supplies of high-purity silicon; demand for
end-use products by consumers and inventory levels of such products
in the supply chain; changes in demand from significant customers;
changes in demand from major markets such as Japan, the U.S., China, Brazil
and India; changes in effective
tax rates; changes in customer order patterns; changes in product
mix; changes in corporate responsibility, especially environmental,
social and governance ("ESG") requirements; capacity utilization;
level of competition; pricing pressure and declines in or failure
to timely adjust average selling prices; delays in new product
introduction; delays in utility-scale project approval process;
delays in utility-scale project construction; delays in the
completion of project sales; continued success in technological
innovations and delivery of products with the features that
customers demand; shortage in supply of materials or capacity
requirements; availability of financing; exchange and inflation
rate fluctuations; uncertainties related to the CSI Solar carve-out
listing; 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
28, 2022. Although the Company believes that the
expectations reflected in the forward-looking statements are
reasonable, it cannot guarantee future results, level of activity,
performance, or achievements. Investors should not place undue
reliance on these forward-looking statements. All information
provided in this press release is as of today's date, unless
otherwise stated, and Canadian Solar undertakes no duty to update
such information, except as required under applicable law.
Investor Relations Contacts:
Isabel
Zhang
Investor
Relations
Canadian Solar
Inc.
investor@canadiansolar.com
|
David
Pasquale
Global IR
Partners
Tel:
+1-914-337-8801
csiq@globalirpartners.com
|
FINANCIAL TABLES FOLLOW
The following tables provide unaudited select financial data
for the Company's CSI Solar and Global Energy businesses.
|
|
|
Select Financial
Data – CSI Solar and Global Energy
|
|
|
|
Three Months Ended
March 31, 2022
(In Thousands of U.S. Dollars, Except Percentages)
|
|
|
|
CSI
Solar
|
|
Global
Energy
|
|
Elimination
and
unallocated
items (1)
|
|
Total
|
Net
revenues
|
|
|
1,209,994
|
|
92,966
|
|
(52,611)
|
|
1,250,349
|
Cost of
revenues
|
|
|
1,034,165
|
|
75,130
|
|
(39,837)
|
|
1,069,458
|
Gross
profit
|
|
|
175,829
|
|
17,836
|
|
(12,774)
|
|
180,891
|
Gross
margin
|
|
|
14.5%
|
|
19.2%
|
|
—
|
|
14.5%
|
Income (loss)
from
operations (2)
|
|
|
31,898
|
|
(1,011)
|
|
(15,372)
|
|
15,515
|
|
|
|
|
|
|
|
|
|
|
|
Select Financial
Data – CSI Solar and Global Energy
|
|
|
|
Three Months Ended
March 31, 2021
(In Thousands of U.S. Dollars, Except Percentages)
|
|
|
|
CSI
Solar
|
|
Global
Energy
|
|
Elimination
and
unallocated
items (1)
|
|
Total
|
Net
revenues
|
|
|
695,152
|
|
471,062
|
|
(76,875)
|
|
1,089,339
|
Cost of
revenues
|
|
|
627,694
|
|
358,037
|
|
(90,994)
|
|
894,737
|
Gross
profit
|
|
|
67,458
|
|
113,025
|
|
14,119
|
|
194,602
|
Gross
margin
|
|
|
9.7%
|
|
24.0%
|
|
—
|
|
17.9%
|
Income (loss)
from
operations (2)
|
|
|
(52,668)
|
|
85,081
|
|
11,070
|
|
43,483
|
(1) Includes
inter-segment elimination, and unallocated corporate costs not
considered part of management's evaluation of reportable 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.
|
|
Select Financial
Data - CSI Solar and Global Energy
|
|
Three Months
Ended
March 31,
2022
|
|
Three Months
Ended
December 31,
2021
|
|
Three Months
Ended
September 30,
2021
|
|
Three Months
Ended
March 31,
2021
|
|
(In Thousands of
U.S. Dollars)
|
CSI
Solar Revenues:
|
|
|
|
|
|
|
|
Solar
modules
|
963,045
|
|
1,060,303
|
|
872,288
|
|
552,247
|
Solar system
kits
|
90,456
|
|
79,085
|
|
98,920
|
|
36,071
|
Battery storage
solutions
|
82,500
|
|
88,430
|
|
62,977
|
|
2,358
|
China energy/EPC
(incl. electricity
sales)
|
5,323
|
|
55,051
|
|
22,337
|
|
7,095
|
Others
|
16,059
|
|
13,432
|
|
32,939
|
|
20,506
|
Subtotal
|
1,157,383
|
|
1,296,301
|
|
1,089,461
|
|
618,277
|
Global Energy
Revenues:
|
|
|
|
|
|
|
|
Solar and battery
storage power projects
|
78,392
|
|
218,509
|
|
126,224
|
|
452,847
|
O&M and asset
management services
|
7,948
|
|
8,730
|
|
8,031
|
|
9,966
|
Others (incl.
electricity sales)
|
6,626
|
|
5,179
|
|
5,734
|
|
8,249
|
Subtotal
|
92,966
|
|
232,418
|
|
139,989
|
|
471,062
|
Total net
revenues
|
1,250,349
|
|
1,528,719
|
|
1,229,450
|
|
1,089,339
|
|
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,
|
|
|
2022
|
|
2021
|
|
2021
|
|
|
|
|
|
|
|
Net
revenues
|
$
1,250,349
|
|
$
1,528,719
|
|
$
1,089,339
|
Cost of
revenues
|
1,069,458
|
|
1,227,425
|
|
894,737
|
|
Gross
profit
|
180,891
|
|
301,294
|
|
194,602
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
Selling and
distribution
expenses
|
108,845
|
|
129,463
|
|
84,080
|
|
General and
administrative
expenses
|
62,810
|
|
89,663
|
|
67,457
|
|
Research and
development
expenses
|
13,280
|
|
19,306
|
|
12,450
|
|
Other operating
income
|
(19,559)
|
|
(4,563)
|
|
(12,868)
|
Total operating
expenses
|
165,376
|
|
233,869
|
|
151,119
|
|
|
|
|
|
|
|
Income from
operations
|
15,515
|
|
67,425
|
|
43,483
|
Other income
(expenses):
|
|
|
|
|
|
|
Interest
expense
|
(15,302)
|
|
(15,532)
|
|
(14,673)
|
|
Interest
income
|
4,212
|
|
2,713
|
|
3,248
|
|
Gain (loss) on change
in
fair value of derivatives, net
|
(24,738)
|
|
13,485
|
|
12,572
|
|
Foreign exchange
gain
(loss), net
|
27,862
|
|
(12,937)
|
|
(19,648)
|
|
Investment income
(loss)
|
(5,524)
|
|
9,327
|
|
1,263
|
Other expenses,
net
|
(13,490)
|
|
(2,944)
|
|
(17,238)
|
|
|
|
|
|
|
|
Income before
income taxes
and equity in earnings of
unconsolidated investees
|
2,025
|
|
64,481
|
|
26,245
|
Income tax benefit
(expense)
|
5,183
|
|
(26,516)
|
|
(13,852)
|
Equity in earnings
of
unconsolidated investees
|
1,726
|
|
1,647
|
|
1,203
|
Net
income
|
8,934
|
|
39,612
|
|
13,596
|
|
|
|
|
|
|
|
Less: Net income
(loss)
attributable to non-
controlling interests
|
(273)
|
|
13,648
|
|
(9,183)
|
|
|
|
|
|
|
|
Net income
attributable to
Canadian Solar Inc.
|
$
9,207
|
|
$
25,964
|
|
$
22,779
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
$
0.14
|
|
$
0.41
|
|
$
0.38
|
Shares used in
computation -
basic
|
64,028,919
|
|
63,470,059
|
|
59,862,901
|
Earnings per share -
diluted
|
$
0.14
|
|
$
0.39
|
|
$
0.36
|
Shares used in
computation -
diluted
|
64,720,107
|
|
70,506,025
|
|
67,531,709
|
|
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,
|
|
2022
|
|
2021
|
|
2021
|
Net
Income
|
$
8,934
|
|
$
39,612
|
|
$
13,596
|
Other
comprehensive income
(net of tax of nil):
|
|
|
|
|
|
Foreign currency
translation
adjustment
|
7,511
|
|
22,013
|
|
(31,702)
|
Gain on changes in
fair value of
derivatives
|
190
|
|
59
|
|
—
|
Comprehensive
income (loss)
|
16,635
|
|
61,684
|
|
(18,106)
|
Less: comprehensive
income
(loss) attributable to non-
controlling interests
|
1,127
|
|
18,281
|
|
(15,692)
|
Comprehensive
income (loss)
attributable to Canadian Solar
Inc.
|
$
15,508
|
|
$
43,403
|
|
$
(2,414)
|
|
|
|
|
|
|
|
Canadian Solar
Inc.
|
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
(In Thousands
of U.S. Dollars)
|
|
|
|
|
|
March
31,
|
|
December 31,
|
|
|
|
2022
|
|
2021
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$ 844,560
|
|
$ 869,831
|
|
|
Restricted
cash
|
845,394
|
|
560,633
|
|
|
Accounts receivable
trade, net
|
728,449
|
|
651,372
|
|
|
Accounts receivable,
unbilled
|
17,138
|
|
37,244
|
|
|
Amounts due from
related parties
|
72,170
|
|
73,042
|
|
|
Inventories
|
1,628,803
|
|
1,192,374
|
|
|
Value added tax
recoverable
|
147,589
|
|
125,882
|
|
|
Advances to
suppliers
|
287,735
|
|
225,879
|
|
|
Derivative
assets
|
6,455
|
|
7,286
|
|
|
Project
assets
|
682,837
|
|
594,107
|
|
|
Prepaid expenses and
other current assets
|
432,758
|
|
434,177
|
|
Total current
assets
|
5,693,888
|
|
4,771,827
|
|
Restricted
cash
|
3,531
|
|
3,818
|
|
Property, plant and
equipment, net
|
1,381,635
|
|
1,401,877
|
|
Solar power systems,
net
|
107,517
|
|
108,263
|
|
Deferred tax assets,
net
|
225,622
|
|
236,503
|
|
Advances to
suppliers
|
39,654
|
|
34,239
|
|
Prepaid land use
right
|
70,622
|
|
71,011
|
|
Investments in
affiliates
|
98,810
|
|
98,819
|
|
Intangible assets,
net
|
18,188
|
|
18,992
|
|
Project
assets
|
525,992
|
|
433,254
|
|
Right-of-use
assets
|
35,571
|
|
35,286
|
|
Other non-current
assets
|
171,590
|
|
174,453
|
|
TOTAL
ASSETS
|
$
8,372,620
|
|
$
7,388,342
|
|
|
|
|
|
|
|
|
Canadian Solar
Inc.
|
|
Unaudited
Condensed Consolidated Balance Sheets (Continued)
|
|
(In Thousands
of U.S. Dollars)
|
|
|
|
|
March
31,
|
|
December 31,
|
|
|
2022
|
|
2021
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
borrowings
|
$
1,282,510
|
|
$
1,271,215
|
|
|
Long-term borrowings
on project assets -
current
|
323,522
|
|
321,655
|
|
|
Accounts
payable
|
791,218
|
|
502,995
|
|
|
Notes
payable
|
1,338,699
|
|
881,184
|
|
|
Amounts due to
related parties
|
886
|
|
143
|
|
|
Other
payables
|
669,406
|
|
667,854
|
|
|
Advance from
customers
|
145,136
|
|
135,512
|
|
|
Derivative
liabilities
|
19,177
|
|
2,622
|
|
|
Operating lease
liabilities
|
11,789
|
|
12,185
|
|
|
Other current
liabilities
|
178,988
|
|
242,783
|
|
Total current
liabilities
|
4,761,331
|
|
4,038,148
|
|
Accrued warranty
costs
|
51,264
|
|
45,146
|
|
Long-term
borrowings
|
753,413
|
|
523,634
|
|
Convertible
notes
|
224,922
|
|
224,675
|
|
Liability for
uncertain tax positions
|
7,612
|
|
7,448
|
|
Deferred tax
liabilities
|
48,913
|
|
48,150
|
|
Loss contingency
accruals
|
12,387
|
|
15,148
|
|
Operating lease
liabilities
|
24,141
|
|
23,215
|
|
Financing
liabilities
|
53,873
|
|
53,641
|
|
Other non-current
liabilities
|
290,053
|
|
282,699
|
|
TOTAL
LIABILITIES
|
6,227,909
|
|
5,261,904
|
|
Equity:
|
|
|
|
|
|
Common
shares
|
835,543
|
|
835,543
|
|
|
Additional paid-in
capital
|
(17,790)
|
|
(19,428)
|
|
|
Retained
earnings
|
1,044,759
|
|
1,035,552
|
|
|
Accumulated other
comprehensive loss
|
(44,283)
|
|
(50,584)
|
|
Total Canadian
Solar Inc. shareholders'
equity
|
1,818,229
|
|
1,801,083
|
|
Non-controlling
interests in subsidiaries
|
326,482
|
|
325,355
|
|
TOTAL
EQUITY
|
2,144,711
|
|
2,126,438
|
|
TOTAL LIABILITIES
AND EQUITY
|
$
8,372,620
|
|
$
7,388,342
|
|
View original
content:https://www.prnewswire.com/news-releases/canadian-solar-reports-first-quarter-2022-results-301553603.html
SOURCE Canadian Solar Inc.