GUELPH, ON, March 18, 2021 /PRNewswire/ -- Canadian Solar
Inc. ("Canadian Solar" or the "Company") (NASDAQ: CSIQ) today
announced financial results for the quarter and full year ended
December 31, 2020.
Fourth Quarter 2020 Results
- Solar module shipments of 3.0 GW at high-end of 2.9 GW to 3.0
GW guidance range.
- 14% sequential growth in revenue to $1,041 million exceeds guidance range of
$980 million to $1,015 million.
- Gross margin of 13.6% exceeds guidance of 8% to 10%.
- Net income attributable to Canadian Solar of $7 million, or $0.11 per diluted share.
Full Year 2020 Highlights
- 32% annual growth in total module shipments to 11.3 GW, in line
with guidance.
- 9% annual growth in net revenue to $3.5
billion.
- Net income attributable to Canadian Solar of $147 million or $2.38 per diluted share.
- 1.4 GWp of projects sold globally in 2020 with 20 GWp solar
project pipeline.
- Won nearly 1 GWh of battery storage contracts. Expect to
deliver and capture approximately 10% market share in the U.S. in
2021.
- Nearly 9 GWh of total battery storage project pipeline.
- Carve-out IPO of CSI Solar subsidiary, formerly mainly the
Module and System Solutions ("MSS") business, on track.
Dr. Shawn Qu, Chairman
and CEO, commented, "While 2020 was a tough year due to the
pandemic, we remained focused on our long-term strategy of growth
and delivered a robust set of results. Fourth quarter revenue and
margins both exceeded our expectations thanks to Canadian Solar's
solid foundations in product and technology innovation and strong
customer relationships. This allowed us to diversify our income
streams, mitigate some of the impact of near-term cost pressures
and accelerate the monetization of our solar projects.
"Looking through the short-term fluctuations, we remain
confident in solar energy's global growth prospects. We are at a
structural turning point where solar grid parity is met with
societal awareness of the urgent need to decarbonize the global
economy. As a result, we are seeing a steep increase in demand for
clean power assets across the world, both for solar and battery
storage projects, where Canadian Solar has a competitive advantage.
We have over 20 GWp of solar project pipeline and nearly 9 GWh of
battery storage pipeline. We are positioned to benefit from robust
growth in both areas. We have been developing our technology in
system integration and go-to-market capabilities for battery
storage solutions in the past few years. In 2021, we will start
delivering at scale and expect to capture around 10% of the battery
storage market in the U.S. alone, based on Wood Mackenzie market
estimates.
"We are also on track on the carve-out IPO of CSI Solar, as we
completed all targeted milestones to date. We are working on the
official listing application which we expect to submit to
regulatory authorities and the stock exchange in April."
Yan Zhuang, President of CSI
Solar Co., Ltd. ("CSI Solar"), Canadian Solar's subsidiary,
said, "This was a challenging quarter as short-term cost pressures
persisted. Polysilicon prices remained elevated in Q4 and have
recently increased another 25%; inflation in most basic commodities
continues; and the U.S. Dollar, Euro, Japanese Yen and other
currencies continue to depreciate relative to the Chinese Renminbi,
hurting our margin. Our team has done an excellent job working with
our customers and partners who were able to share a portion of the
higher costs. On a positive note, while we expect further
volatility, we have seen certain costs such as solar glass prices
starting to come down, and early signals of normalizing shipping
costs.
"As solar transitions from a subsidy-driven to a market-driven
industry, we need to fundamentally reevaluate today's solar market
dynamics. We are approaching the bottom of the solar cost curve and
the era of ever-declining solar module prices is largely behind us.
In fact, in the near term, solar module prices will increase.
Hence, we are focusing on leveraging our competitive position in
our diversified and premium end markets to deliver growth in higher
value-add applications of solar solutions, including system
integration with battery storage. We will continue to solidify our
market leadership through our strong brand and differentiated
technology offerings to deliver attractive returns to our
shareholders."
Ismael Guerrero, Corporate VP
and President of Canadian Solar's Global Energy business, said,
"I'm proud of our team's work and dedication during the pandemic,
as we focused on delivering projects and working with our partners
despite many challenges. In 2020, we achieved 1.4 GWp in project
sales, while concurrently increasing our solar pipeline by over 4
GWp to more than 20 GWp. We are also making significant inroads in
developing utility scale battery storage projects. These will
contribute to grid stability in the markets where we operate by
improving the grid's ability to absorb more renewable energy. In
one year, we have tripled our storage pipeline from less than 3 GWh
this time last year, to nearly 9 GWh, of which almost 1 GWh is
already under construction. Furthermore, we recently announced the
launch of the Japan Green Infrastructure Fund and the capital raise
of the Canadian Solar Infrastructure Fund. We will continue to
accelerate growth and optimize the monetization of our clean energy
projects."
Dr. Huifeng Chang, Senior VP
and CFO, added, "In the fourth quarter, we achieved over
$1 billion in revenue and a 13.6%
gross margin, both ahead of our guidance. We generated $120 million in net cash from
operating activities in the fourth quarter and ended with a
$1.6 billion total cash position,
giving us the financial strength to support attractive long term
growth opportunities. Meanwhile, we will continue to maintain
capital discipline as we monitor and adjust our growth strategy
based on market developments."
Fourth Quarter 2020 Results
Total module shipments in the fourth quarter of 2020 were
2,998 MW, an increase of 22% year-over-year ("yoy") and decrease of
5% quarter-over-quarter ("qoq"). Of the total, 359 MW was
shipped to the Company's own utility-scale solar power
projects.
Net revenue in the fourth quarter of 2020 grew by 9% yoy and 14%
qoq to $1,041 million. The
sequential increase was driven by higher project
sales spanning the United States, Mexico, Japan, Canada
and Italy, and a slightly
higher module average selling price ("ASP"), which was partly
offset by lower module shipments.
Gross profit in the fourth quarter of 2020 was $141 million, down 21% qoq. Gross margin in
the fourth quarter of 2020 was 13.6%, compared to guidance of 8% to
10%, and 19.5% in the third quarter of 2020. The gross
margin decline was mainly driven by the previously anticipated
increase in manufacturing costs, which was partly offset by higher
module ASP and a more favorable mix.
Total operating expenses in the fourth quarter of 2020 were
$139 million compared to $119 million in the
third quarter of 2020. The sequential increase
was primarily driven by higher shipping expenses and an impairment
charge related to certain manufacturing assets.
Non-cash depreciation and amortization charges in the fourth
quarter of 2020 were $59 million, compared to
$56 million in the third quarter of 2020, and
$45 million in the
fourth quarter of 2019.
Net foreign exchange gain in the fourth quarter of 2020 was
$4 million, compared to a net loss of
$13 million in the third quarter
of 2020 and a net loss of $3 million
in the fourth quarter of 2019.
Income tax benefit in the fourth quarter of 2020 was
$2 million, compared to $21 million of income tax expense in the
third quarter of 2020 and $25
million of income tax expense in the fourth quarter of
2019. The benefit was driven by higher expected utilization of
tax losses carried forward due to expansion in manufacturing
capacity and improvement in process efficiency at the Company's
factories.
Net income attributable to Canadian Solar in the
fourth quarter of 2020 was $7 million, or $0.11 per diluted share, compared to net
income of $9 million, or $0.15 per diluted share in the third quarter
of 2020.
Net cash provided by operating activities in the
fourth quarter of 2020 was $120 million, compared to $47 million provided by operating
activities in the third quarter of 2020.
New Corporate Structure
In July 2020, the Company
announced its plan to carve-out and publicly list its Module and
System Solutions ("MSS") subsidiary, CSI Solar Co., Ltd. ("CSI
Solar"), in China. In preparation
for the listing, the Company successfully completed the
restructuring of its business segments during the fourth quarter of
2020. The table below is a summary comparison of the adjustments
made in reporting structures. The main change being the transfer
and inclusion of the China Energy business within the scope of CSI
Solar.
As of December 31, 2020, Canadian
Solar owned 80% of CSI Solar, with the remaining 20% owned by
strategic investors who purchased CSI Solar shares during the
pre-IPO transaction. An additional 5% of CSI Solar shares were
purchased by CSI Solar's employee stock ownership plan ("ESOP"),
for which the vesting condition is the successful completion of the
IPO. Both the CSI Solar and Global Energy segments are fully
consolidated within Canadian Solar.
Historical
reporting structure
|
New reporting
structure
|
Module and System
Solutions ("MSS") Business
- Solar
modules
- Solar system
kits
- Other materials, components and services
(including EPC)
|
CSI Solar (entity
to be listed in China)
- Solar
modules
- Solar system
kits
- Battery energy
storage solutions – new
- China Energy (solar
power projects, EPC
services and electricity revenue) – formerly
within the Energy Business
- Other materials, components and services (including
EPC)
|
Energy
Business
- Solar power
projects – includes China Energy
- Operations and
maintenance (O&M)
- Electricity revenue
– includes China Energy
- Other development
services
|
Global
Energy
- Solar and energy storage power projects –
global excludes China
- O&M and asset
management services
- Other development services – includes
electricity revenue for global, excludes China
|
Battery Storage Opportunities
The Company will start reporting revenues from its energy
storage business in this quarter. Canadian Solar is one of the
first movers in developing and supplying energy storage solutions
and projects. Given the exponential market opportunities driven by
rapid technology improvements, declining battery storage costs,
rising penetration of renewable energy and accelerating retirements
of fossil fuel capacity, the Company has strategically positioned
itself in the battery storage market, both in solar plus battery
storage as well as in stand-alone storage opportunities.
Canadian Solar has a unique advantage in tapping into the large
energy storage market opportunities given its position as a global
leader both in module manufacturing as well as a solar project
development. Thus, both the CSI Solar and Global Energy segments
have focused strategically on their respective energy storage
businesses:
- Under CSI Solar, the battery storage solutions team focuses on
delivering bankable, end-to-end, integrated battery storage
solutions for utility scale, commercial and industrial, as well as
residential applications. These systems solutions will be
complemented with long term service agreements, including future
battery capacity augmentation services.
- Under Global Energy, energy storage project development is now
fully integrated within the main solar development teams. Given the
segment's large and growing pipeline, it is uniquely positioned to
capture utility-scale energy storage projects, both co-located with
solar PV as well as stand-alone opportunities.
CSI Solar Segment
The table below sets forth Canadian Solar's 2021 capacity
expansion targets along the solar module value chain. All new
capacity will produce Canadian Solar's next generation high-power,
high-efficiency modules in the HiKu and BiHiKu product
portfolios.
Manufacturing Capacity, GW (period-end)
|
FY20
Actual
|
1H21
|
FY21
|
Ingot
|
2.1
|
5.1
|
10.0
|
Wafer
|
6.3
|
11.3
|
11.3
|
Cell
|
9.6
|
13.4
|
18.2
|
Module
|
16.1
|
23.2
|
25.7
|
Note: The Company's 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 Company's CSI Solar segment for the periods
indicated.
CSI Solar Segment
Financial Results*
(In Thousands of
U.S. Dollars, Except Percentages and Unless Otherwise
Stated)
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
2020
|
September
30,
2020
|
December
31,
2019
|
|
December
31,
2020
|
December
31,
2019
|
Net
revenues
|
784,588
|
921,529
|
772,140
|
|
3,105,044
|
2,591,154
|
Cost of
revenues
|
678,410
|
738,352
|
574,687
|
|
2,496,153
|
1,977,502
|
Gross
profit
|
106,178
|
183,177
|
197,453
|
|
608,891
|
613,652
|
Operating
expenses
|
103,378
|
94,936
|
90,742
|
|
355,786
|
346,010
|
Income from
operations
|
2,800
|
88,241
|
106,711
|
|
253,105
|
267,642
|
Gross
margin
|
13.5%
|
19.9%
|
25.6%
|
|
19.6%
|
23.7%
|
Operating
margin
|
0.4%
|
9.6%
|
13.8%
|
|
8.2%
|
10.3%
|
*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 from operations reflects
management's allocation and estimate as some services are shared by
the Company's two business segments. Historical values have been
revised to conform to current period presentation.
The table below provides the geographic distribution of the net
revenue of CSI Solar:
CSI Solar Net
Revenues Geographic Distribution* (In Millions of U.S. Dollars,
Except
Percentages)
|
|
Q4
2020
|
% of Net
Revenues
|
|
Full year
2020
|
% of Net
Revenues
|
|
Asia
|
414
|
62
|
|
1,295
|
47
|
|
Americas
|
149
|
22
|
|
860
|
31
|
|
Europe and
others
|
105
|
16
|
|
595
|
22
|
|
Total
|
668
|
100
|
|
2,750
|
100
|
|
*Excludes sales from CSI Solar to Global Energy.
Canadian Solar shipped 3 GW of modules to more than
70 countries in the fourth quarter of 2020. The top
five markets ranked by shipments were the Vietnam, China, the U.S., Brazil and Australia. For the full year of 2020, the top
five markets ranked by shipments were the U.S., Vietnam, China, Brazil
and Japan.
Battery Storage Solutions
The Company is one of the early movers in developing system
solutions and energy storage integration services. Within CSI
Solar, the battery storage solutions team delivers competitive
turnkey, integrated battery storage solutions, including bankable
and fully wrapped capacity and performance guarantees. These
guarantees are complemented with long term operations and
maintenance agreements, which include future battery capacity
augmentation services and bring in longer term stable income.
The table below sets forth CSI Solar's battery storage system
integration's contracted projects and/or under construction,
those in high probability forecast, and pipeline as of January 31, 2021.
|
Contracted/
In
Construction
|
Forecast
|
Pipeline
|
Total
|
Storage
(MWh)
|
861
|
1,400
|
3,646
|
5,907
|
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.
Global Energy Segment
Global Energy Business Strategy
Canadian Solar has one of the world's largest and most
geographically diversified utility-scale solar project development
platforms, with a strong track record originating, developing,
financing, building over 5.7 GWp of solar power plants across six
continents. As a first mover, the Company has built a leadership
position in solar project development and currently has an
aggregate pipeline of 20.2 GWp.
The Company's Global Energy business has been optimizing its
operating model from developing and/or building projects, and
selling them (either at notice to proceed, NTP, or commercial
operation date, COD), to increasingly retaining minority ownership
interest in its own projects. This allows Canadian Solar to:
- Capture additional operational value throughout the partial
ownership period, including long-term cash flows from power sales,
operations and maintenance ("O&M"), asset management and other
services;
- Build and grow a stable base of long-term cash flows, which
will help smooth the typical lumpiness associated with the
development and sale of solar power projects;
- Recycle a large portion of the capital into developing new
solar projects for growth; and
- Create new growth opportunities such as retrofitting energy
storage systems onto or co-located with existing projects.
Management targets to achieve the following over the next 5
years:
Global Energy
Targets
|
2020
Actual
|
2021
|
2022
|
2023
|
2024
|
2025
|
|
Annual Project Sales,
GWp
|
1.4
|
1.8-2.3
|
2.4-2.9
|
3.2-3.7
|
3.6-4.1
|
4.0-4.5
|
|
Cumulative Projects
Retained, MWp
|
118
|
~200
|
~400
|
~760
|
~960
|
~1,000
|
|
Operational O&M
projects, GWp
|
2.2
|
~2.6
|
~4.0
|
~6.5
|
~9.2
|
~11.0
|
|
Note: Forecasts
for annual project sales include both projects sold at NTP and COD,
which have a significant impact on revenue but more limited
impact on profits. Final timing and recognition of project sales
may be impacted by various external factors. Cumulative projects
retained include
only the net size of the projects owned by Canadian Solar. These
targets are subject to change without notice.
|
To help fund this strategy, the Company has developed and will
continue to develop capital partnerships with investors seeking
long-term, stable cash flows through investments in clean,
profitable and countercyclical solar energy infrastructure
investments. These capital partnerships include both public and
private investment vehicles in select markets.
For example, in February 2021, the
Company launched the Japan Green Infrastructure Fund, a new solar
development platform in partnership with Macquarie Advisory &
Capital Solutions. This was followed by Canadian Solar's
participation in Canadian Solar Infrastructure Fund's ("CSIF", TSE:
9284) international offering, in which the Company maintained its
ownership stake at approximately 15%, as CSIF expanded its capital
base to acquire a 61 MWp portfolio of operating solar projects in
Japan developed by Canadian
Solar.
The Company intends to pursue similar capital partnerships to
accelerate growth and deliver attractive returns to its
shareholders. The next launch is expected in Brazil, in the form of a Brazilian
Participation Fund for Infrastructure projects ("FIP-IE"). This
fund has already been established and is currently planned for
assets that will be built in 2021 to 2023. The Company is also in
the process of establishing and launching similar project
investment vehicles in certain European countries. Through these
capital partnerships, the Company expects to optimize the
monetization of project assets and build sustainable long-term
value for Canadian Solar's shareholders.
Total Solar Project Pipeline
As January 31, 2021, the Company's
total project pipeline was 20.2 GWp, including, 1.6 GWp under
construction, 3.8 GWp of backlog, and 14.8 GWp of earlier stage
pipeline. The backlog includes projects that have passed their Risk
Cliff Date and are expected to be built in the next one to four
years. A project's Risk Cliff Date depends on the country where the
project is located and is defined as the date on which the project
passes the last high-risk development stage. This is usually after
the projects have received all the required environmental and
regulatory approvals, interconnection agreements, feed-in tariff
("FIT") arrangements and power purchase agreements ("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.
The Company's pipeline includes early- to mid-stage project
opportunities currently under development but that are yet to be
de-risked.
The following table presents the Company's full pipeline as of
January 31, 2021.
|
Total Project
Pipeline (as of January 31, 2021) – MWp
|
Region
|
In
Construction
|
Backlog
|
Pipeline
|
Total
|
North
America
|
328
|
728
|
5,030
|
6,086
|
Latin
America
|
731*
|
2,229*
|
3,495
|
6,455
|
Europe, the Middle
East and Africa ("EMEA")
|
-
|
429*
|
2,912
|
3,341
|
Japan
|
159
|
121
|
24
|
304
|
Asia Pacific
excluding Japan and China
|
345
|
191
|
1,810
|
2,346
|
China (part of CSI
Solar)
|
-
|
125
|
1,500
|
1,625
|
Total
|
1,563
|
3,823
|
14,771
|
20,157
|
Note: Gross MWp
size of projects includes 510 MWp and 63 MWp of
projects in construction and backlog, respectively, in Latin
America,
and 129 MWp in
backlog in EMEA, that are not owned by Canadian Solar or have been
sold to third parties.
|
|
|
|
|
|
|
The Company has a sizable amount of premium, high 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 January 31, 2021:
Expected COD Schedule – MWp
|
2021
|
|
2022
|
|
2023 and
Thereafter
|
|
Total
|
|
63
|
|
167
|
|
50
|
|
280
|
Solar Power Plants in Operation
As of January 31, 2021, the Company's power plants in
operation totaled 493 MWp, with a combined estimated net resale
value of approximately $620 million to Canadian Solar. The
estimated resale value is based on selling prices that Canadian
Solar is currently negotiating or transaction prices of similar
assets in the relevant markets.
Latin
America
|
Japan
|
Asia
Pacific
ex. Japan &
China
|
China
|
Total
|
100
|
75
|
61
|
257
|
493
|
Note: Gross MWp size of projects, includes
26 MWp in Asia
Pacific ex. Japan already
sold to third parties. Also includes 61 MWp of projects in
Japan which were sold in
March 2021. China portfolio is part of CSI Solar.
Total 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. Over the past year, Canadian
Solar has signed several new 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.
Canadian Solar is uniquely positioned to deliver energy storage
solutions to its customers, especially in solar plus storage
solutions, given its proprietary integrated technologies and
expertise in battery storage system integration and its unique
positioning as both a top-tier module manufacturer and global
project developer.
The table below sets forth Global Energy's storage project
development backlog and pipeline as of January 31, 2021.
|
In
Operation
|
In
Construction
|
Backlog
|
Pipeline
|
Total
|
Storage
(MWh)
|
3
|
913
|
1,388
|
6,467
|
8,771
|
Operating Results
The following table presents unaudited select results of
operations data of the Company's Global Energy segment for the
periods indicated.
|
Global Energy
Segment Financial Results*
(In
Thousands of U.S. Dollars, Except Percentages and Unless Otherwise
Stated)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
2020
|
September
30, 2020
|
December
31,
2019
|
|
December
31,
2020
|
December
31,
2019
|
Net
revenues
|
372,617
|
78,566
|
215,854
|
|
726,167
|
718,735
|
Cost of
revenues
|
340,403
|
53,635
|
178,583
|
|
577,052
|
604,856
|
Gross
profit
|
32,214
|
24,931
|
37,271
|
|
149,115
|
113,879
|
Operating
expenses
|
30,434
|
19,490
|
21,871
|
|
95,701
|
95,084
|
Income from
operations
|
1,780
|
5,441
|
15,400
|
|
53,414
|
18,795
|
Gross
margin
|
8.6%
|
31.7%
|
17.3%
|
|
20.5%
|
15.8%
|
Operating
margin
|
0.5%
|
6.9%
|
7.1%
|
|
7.4%
|
2.6%
|
*Historical values
have been revised to conform to current period
presentation
|
|
|
|
|
|
|
|
|
|
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, and the global impact of the ongoing COVID-19 pandemic.
Management's views and estimates are subject to change without
notice.
For the first quarter of 2021, the Company expects total
module shipments to be in the range of 3.0 GW to 3.2 GW, including
approximately 300 MW of module shipments to the Company's own
projects. Total revenues are expected to be in the range of
$1.0 billion to $1.1 billion. Gross margin is expected to be
between 16% and 18%.
The Company reiterates full year 2021 total shipment guidance of 18 GW
to 20 GW and project sales guidance of 1.8 GW to 2.3 GW, and
provides total revenue guidance for 2021, expected to be in the
range of $5.6 billion to $6.0 billion.
Dr. Shawn Qu, Chairman and
CEO, commented, "We entered 2021 from a strong financial
position and have significant growth catalysts unique to Canadian
Solar such as our already large and expanding backlog of battery
storage projects. Our Q1 profitability guidance also reflects the
sale of high gross margin projects, particularly in Japan, which we have already announced. We
balance our optimism with expected near-term volatility, driven by
continued cost pressures and unfavorable foreign exchange
rates.
"We are seeing strong demand and expect an acceleration through
the year. We also continue to implement further price increases to
reflect the high cost pressures. Medium to longer term, we remain
very positive. We have a strong brand and increasing demand for
quality clean energy projects. Our storage projects will also
contribute to both topline and earnings this year as we complete
key delivery milestones and build long-term sustainable returns for
shareholders."
Recent Developments
On March 16, 2021, Canadian Solar
announced a strategic partnership with German off-grid solar
pioneer SolarWorX. Alongside EIT InnoEnergy and Deutsche
Entwicklungsgesellschaft (DEG).
On March 8, 2021, Canadian Solar
announced that it had completed the sale of two operational
projects totaling 61 MWp to Canadian Solar Infrastructure Fund
(CSIF) for approximately $283
million. Canadian Solar also participated in CSIF's equity
offering and continues to own approximately 15% of CSIF.
On February 16, 2021, Canadian
Solar announced that it successfully closed the Japan Green
Infrastructure Fund in partner with Macquarie Advisory &
Capital Solutions and raised a total of JPY22 billion committed capital to develop new
projects in Japan.
On January 13, 2021, Canadian
Solar announced its wholly-owned subsidiary Recurrent Energy
completed the sale of the Slate project to Goldman Sachs Renewable
Power LLC. The Slate project is a 300 MWac solar plus 140.25 MW /
561 MWh storage project located in California.
On January 7, 2021, Canadian Solar
announced its wholly-owned subsidiary, Recurrent Energy completed
the sale of the 144 MWac Pflugerville Solar project in Texas to Duke Energy Renewables, a
subsidiary of Duke Energy.
On January 5, 2021, Canadian Solar
announced it sold an ownership interest in its Hays and
Jenner solar power projects
totaling 62 MWp to BluEarth Renewables.
On December 22, 2020, Canadian
Solar announced it completed the sale of the remaining 30%
ownership of the Big Fish SPV S.r.l. and Iron SPV S.r.l. solar
power projects to Falck Renewables. Both projects have a total
expected capacity of more than 290 MWp.
On December 16, 2020, Canadian
Solar announced it completed the sale of the 19 MWp Gunma Aramaki
solar power plant in Japan for
approximately $64 million.
On November 23, 2020, Canadian
Solar announced it signed a 12-year power purchase agreement for a
170 MWp cluster of projects with BTG Pactual and was awarded with
two projects totaling 692 MWp with a 15-year purchase agreement in
a private auction by Furnas Centrais Elétricas.
Conference Call Information
The Company will hold a conference call at 8:00 a.m. U.S. Eastern Daylight Time on
Thursday, March 18, 2021
(8:00 p.m., Thursday, March 18, 2021 in Hong Kong) to discuss its fourth quarter
and full year 2020 results and business outlook. The dial-in
phone number for the live audio call is +1-866-519-4004 (toll-free
from the U.S.), +852-3018-6771 (local dial-in from Hong Kong) or +1 845-675-0437 from
international locations. The passcode for the call is
5243226. 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 Friday, March 26, 2021 (9:00 p.m., March 26,
2021 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) or +1-646-254-3697 from international locations.
The passcode for the replay is 5243226. 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 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 19 years, Canadian Solar has
successfully delivered over 52 GW of premium-quality, solar
photovoltaic modules to customers in over 150 countries. Likewise,
since entering the project development business in 2010, Canadian
Solar has developed, built and connected over 5.7 GWp in over 20
countries across the world. Currently, the Company has around 500
MWp of projects in operation, over 5 GWp of projects under
construction or in backlog (late-stage), and an additional 15 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 regarding the Company's
expected future shipment volumes, gross margins 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 and
economic conditions and the state of the solar industry;
volatility, uncertainty, delays and disruptions related to the
COVID-19 pandemic; 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., India, China
and Brazil; changes in customer
order patterns; changes in product mix; capacity utilization; level
of competition; pricing pressure and declines in 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 customers demand; shortage in supply of materials or
capacity requirements; availability of financing; exchange rate
fluctuations; litigation and other risks as described in the
Company's SEC filings, including its annual report on Form 20-F
filed on April 28, 2020. Although the
Company believes that the expectations reflected in the
forward-looking statements are reasonable, it cannot guarantee
future results, level of activity, performance, or achievements.
Investors should not place undue reliance on these forward-looking
statements. All information provided in this press release is as of
today's date, unless otherwise stated, and Canadian Solar
undertakes no duty to update such information, except as required
under applicable law.
FINANCIAL TABLES FOLLOW
The following tables provide unaudited select financial data
for the Company's CSI Solar and Global Energy businesses for 2020
and 2019. Historical values of 2019 have been revised to conform to
current period presentation:
|
|
|
Select Financial
Data – CSI Solar and Global Energy
|
|
|
|
Three Months Ended
December 31, 2020
(In Thousands of U.S. Dollars, Except Percentages)
|
|
|
|
CSI
Solar
|
|
Global
Energy
|
|
Elimination
and
unallocated
items (1)
|
|
Total
|
Net
revenues
|
|
|
784,588
|
|
372,617
|
|
(116,551)
|
|
1,040,654
|
Cost of
revenues
|
|
|
678,410
|
|
340,403
|
|
(119,247)
|
|
899,566
|
Gross
profit
|
|
|
106,178
|
|
32,214
|
|
2,696
|
|
141,088
|
Gross
margin
|
|
|
13.5%
|
|
8.6%
|
|
—
|
|
13.6%
|
Income from
operations
|
|
|
2,800
|
|
1,780
|
|
(2,101)
|
|
2,479
|
|
|
|
Select Financial
Data - CSI Solar and Global Energy
|
|
|
|
Twelve Months Ended December 31, 2020
(In Thousands of U.S. Dollars, Except Percentages)
|
|
|
|
CSI
Solar
|
|
Global
Energy
|
|
Elimination
and
unallocated
items(1)
|
|
Total
|
Net
revenues
|
|
|
3,105,044
|
|
726,167
|
|
(354,716)
|
|
3,476,495
|
Cost of
revenues
|
|
|
2,496,153
|
|
577,052
|
|
(286,624)
|
|
2,786,581
|
Gross
profit
|
|
|
608,891
|
|
149,115
|
|
(68,092)
|
|
689,914
|
Gross
margin
|
|
|
19.6%
|
|
20.5%
|
|
—
|
|
19.8%
|
Income from
operations
|
|
|
253,105
|
|
53,414
|
|
(86,089)
|
|
220,430
|
|
|
|
Select Financial
Data - CSI Solar and Global Energy
|
|
|
|
Three Months Ended December 31, 2019
(In Thousands of U.S. Dollars, Except Percentages)
|
|
|
|
CSI
Solar
|
|
Global
Energy
|
|
Elimination
and
unallocated
items(1)
|
|
Total
|
Net
revenues
|
|
|
772,140
|
|
215,854
|
|
(68,287)
|
|
919,707
|
Cost of
revenues
|
|
|
574,687
|
|
178,583
|
|
(63,065)
|
|
690,205
|
Gross
profit
|
|
|
197,453
|
|
37,271
|
|
(5,222)
|
|
229,502
|
Gross
margin
|
|
|
25.6%
|
|
17.3%
|
|
—
|
|
25.0%
|
Income from
operations
|
|
|
106,711
|
|
15,400
|
|
(10,685)
|
|
111,426
|
|
|
|
Select Financial
Data - CSI Solar and Global Energy
|
|
|
|
Twelve Months Ended December 31, 2019
(In Thousands of U.S. Dollars, Except Percentages)
|
|
|
|
CSI
Solar
|
|
Global
Energy
|
|
Elimination
and
unallocated
items(1)
|
|
Total
|
Net
revenues
|
|
|
2,591,154
|
|
718,735
|
|
(109,306)
|
|
3,200,583
|
Cost of
revenues
|
|
|
1,977,502
|
|
604,856
|
|
(100,272)
|
|
2,482,086
|
Gross
profit
|
|
|
613,652
|
|
113,879
|
|
(9,034)
|
|
718,497
|
Gross
margin
|
|
|
23.7%
|
|
15.8%
|
|
—
|
|
22.4%
|
Income from
operations
|
|
|
267,642
|
|
18,795
|
|
(27,558)
|
|
258,879
|
(1) Includes inter-segment elimination, and unallocated
corporate costs not considered part of management's evaluation of
reportable segment operating performance.
|
Select Financial
Data - CSI Solar, and Global Energy
|
|
Three Months
Ended
December 31,
2020
|
|
Twelve Months Ended
December 31, 2020
|
|
(In Thousands of
U.S. Dollars)
|
CSI
Solar Revenues:
|
|
|
|
Solar
modules
|
586,820
|
|
2,348,724
|
Solar system
kits
|
39,071
|
|
157,656
|
Battery storage
solutions
|
4,953
|
|
7,899
|
China energy (incl.
electricity sales)
|
15,194
|
|
175,388
|
Others
|
21,999
|
|
60,661
|
Subtotal
|
668,037
|
|
2,750,328
|
Global Energy
Revenues:
|
|
|
|
Solar power
projects
|
354,671
|
|
654,827
|
O&M and asset
management services
|
8,365
|
|
26,386
|
Others
|
9,581
|
|
44,954
|
Subtotal
|
372,617
|
|
726,167
|
Total net
revenues
|
1,040,654
|
|
3,476,495
|
|
Select Financial
Data - CSI Solar, and Global Energy
|
|
Three Months
Ended
December 31,
2019
|
|
Twelve Months Ended
December 31, 2019
|
|
(In Thousands of
U.S. Dollars)
|
CSI
Solar Revenues:
|
|
|
|
Solar
modules
|
604,333
|
|
2,012,059
|
Solar system
kits
|
31,430
|
|
116,449
|
Battery storage
solutions
|
—
|
|
—
|
China energy (incl.
electricity sales)
|
17,551
|
|
58,096
|
Others
|
50,539
|
|
295,244
|
Subtotal
|
703,853
|
|
2,481,848
|
Global Energy
Revenues:
|
|
|
|
Solar power
projects
|
193,970
|
|
652,050
|
O&M and asset
management services
|
6,390
|
|
19,750
|
Others
|
15,494
|
|
46,935
|
Subtotal
|
215,854
|
|
718,735
|
Total net
revenues
|
919,707
|
|
3,200,583
|
|
Canadian Solar
Inc.
|
|
Unaudited
Condensed Consolidated Statements of Operations
|
|
(In Thousands of
U.S. Dollars, Except Share and Per Share Data and Unless Otherwise
Stated)
|
|
|
Three Months
Ended
|
|
Twelve
Months Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
$
1,040,654
|
|
$ 914,360
|
|
$ 919,707
|
|
$
3,476,495
|
|
$
3,200,583
|
Cost of
revenues
|
899,566
|
|
735,943
|
|
690,205
|
|
2,786,581
|
|
2,482,086
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
141,088
|
|
178,417
|
|
229,502
|
|
689,914
|
|
718,497
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Selling and
distribution
expenses
|
64,123
|
|
53,998
|
|
50,099
|
|
224,243
|
|
180,326
|
|
General and
administrative
expenses
|
70,099
|
|
56,183
|
|
64,133
|
|
225,597
|
|
242,783
|
|
Research and
development
expenses
|
10,040
|
|
14,147
|
|
10,179
|
|
45,167
|
|
47,045
|
|
Other operating
income
|
(5,653)
|
|
(4,958)
|
|
(6,335)
|
|
(25,523)
|
|
(10,536)
|
Total operating
expenses
|
138,609
|
|
119,370
|
|
118,076
|
|
469,484
|
|
459,618
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
2,479
|
|
59,047
|
|
111,426
|
|
220,430
|
|
258,879
|
Other income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(17,984)
|
|
(17,917)
|
|
(19,734)
|
|
(71,874)
|
|
(81,326)
|
|
Interest
income
|
2,415
|
|
2,031
|
|
2,979
|
|
9,306
|
|
12,039
|
|
Gain (loss) on change
in
fair value of derivatives, net
|
6,098
|
|
13,143
|
|
(6,294)
|
|
50,001
|
|
(22,218)
|
|
Foreign exchange
gain
(loss), net
|
(1,992)
|
|
(26,517)
|
|
3,717
|
|
(64,820)
|
|
10,370
|
|
Investment income
(loss)
|
10,321
|
|
(6,393)
|
|
120
|
|
(8,559)
|
|
1,929
|
Other expenses,
net
|
(1,142)
|
|
(35,653)
|
|
(19,212)
|
|
(85,946)
|
|
(79,206)
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes
and equity in earnings of
unconsolidated investees
|
1,337
|
|
23,394
|
|
92,214
|
|
134,484
|
|
179,673
|
Income tax benefit
(expense)
|
2,463
|
|
(20,632)
|
|
(25,209)
|
|
1,983
|
|
(42,066)
|
Equity in earnings
of
unconsolidated investees
|
2,919
|
|
6,105
|
|
923
|
|
10,779
|
|
28,948
|
Net
income
|
6,719
|
|
8,867
|
|
67,928
|
|
147,246
|
|
166,555
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
(loss)
attributable to non-controlling
interests
|
84
|
|
34
|
|
191
|
|
543
|
|
(5,030)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to
Canadian Solar Inc.
|
$
6,635
|
|
$
8,833
|
|
$
67,737
|
|
$
146,703
|
|
$
171,585
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
$
0.11
|
|
$
0.15
|
|
$
1.13
|
|
$
2.46
|
|
$
2.88
|
Shares used in
computation -
basic
|
59,801,709
|
|
59,749,307
|
|
59,846,779
|
|
59,575,898
|
|
59,633,855
|
Earnings per share -
diluted
|
$
0.11
|
|
$
0.15
|
|
$
1.12
|
|
$
2.38
|
|
$
2.83
|
Shares used in
computation -
diluted
|
61,147,256
|
|
60,829,073
|
|
60,407,086
|
|
62,306,819
|
|
60,777,696
|
|
Canadian Solar
Inc.
|
|
Unaudited
Condensed Consolidated Statement of Comprehensive
Income
|
|
(In Thousands of
U.S. Dollars)
|
|
Three Months
Ended
|
|
Twelve Months Ended
|
|
December
31,
|
|
September 30,
|
|
December
31,
|
|
December
31,
|
|
December
31,
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net
Income
|
6,719
|
|
8,867
|
|
67,928
|
|
147,246
|
|
166,555
|
Other
comprehensive income
(net of tax of nil):
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation
adjustment
|
58,943
|
|
32,173
|
|
8,923
|
|
76,142
|
|
319
|
De-recognition of
commodity
hedge and interest rate swap
|
—
|
|
6,285
|
|
—
|
|
10,724
|
|
—
|
Gain (loss) on
changes in fair
value of derivatives
|
(256)
|
|
256
|
|
1,147
|
|
(4,115)
|
|
(5,847)
|
Comprehensive
income
|
65,406
|
|
47,581
|
|
77,998
|
|
229,997
|
|
161,027
|
Less:
comprehensive
income(loss) attributable to non-
controlling interests
|
84
|
|
51
|
|
(2,216)
|
|
2,496
|
|
(11,100)
|
Comprehensive
income
attributable to Canadian Solar
Inc.
|
65,322
|
|
47,530
|
|
80,214
|
|
227,501
|
|
172,127
|
Canadian Solar
Inc.
|
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
(In Thousands
of U.S. Dollars)
|
|
|
|
December
31,
|
|
December 31,
|
|
|
|
2020
|
|
2019
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$
1,178,752
|
|
$
668,770
|
|
|
Restricted
cash
|
458,334
|
|
526,723
|
|
|
Accounts receivable
trade, net
|
408,958
|
|
436,815
|
|
|
Accounts receivable,
unbilled
|
28,461
|
|
15,256
|
|
|
Amounts due from
related parties
|
5,834
|
|
31,232
|
|
|
Inventories
|
695,981
|
|
554,070
|
|
|
Value added tax
recoverable
|
102,460
|
|
108,920
|
|
|
Advances to
suppliers
|
182,146
|
|
47,978
|
|
|
Derivative
assets
|
23,351
|
|
5,547
|
|
|
Project
assets
|
747,764
|
|
604,083
|
|
|
Prepaid expenses and
other current assets
|
353,781
|
|
253,542
|
|
Total current
assets
|
4,185,822
|
|
3,252,936
|
|
Restricted
cash
|
2,629
|
|
9,927
|
|
Property, plant and
equipment, net
|
1,157,731
|
|
1,046,035
|
|
Solar power systems,
net
|
158,262
|
|
52,957
|
|
Deferred tax assets,
net
|
170,656
|
|
153,963
|
|
Advances to
suppliers
|
97,173
|
|
40,897
|
|
Prepaid land use
right
|
62,414
|
|
60,836
|
|
Investments in
affiliates
|
78,291
|
|
152,828
|
|
Intangible assets,
net
|
22,429
|
|
22,791
|
|
Project
assets
|
389,702
|
|
483,051
|
|
Right-of-use
assets
|
26,793
|
|
37,733
|
|
Other non-current
assets
|
184,952
|
|
153,253
|
|
TOTAL
ASSETS
|
$
6,536,854
|
|
$
5,467,207
|
|
Canadian Solar
Inc.
|
|
Unaudited
Condensed Consolidated Balance Sheets (Continued)
|
|
(In Thousands
of U.S. Dollars)
|
|
|
December
31,
|
|
December 31,
|
|
|
2020
|
|
2019
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
borrowings
|
$
1,202,285
|
|
$
933,120
|
|
|
Long-term borrowings
on project assets -
current
|
198,794
|
|
286,173
|
|
|
Accounts
payable
|
514,742
|
|
585,601
|
|
|
Notes
payable
|
710,636
|
|
544,991
|
|
|
Amounts due to
related parties
|
314
|
|
10,077
|
|
|
Other
payables
|
508,839
|
|
446,454
|
|
|
Advance from
customers
|
189,470
|
|
134,806
|
|
|
Derivative
liabilities
|
10,755
|
|
10,481
|
|
|
Operating lease
liabilities
|
15,204
|
|
18,767
|
|
|
Other current
liabilities
|
237,316
|
|
121,527
|
|
Total current
liabilities
|
3,588,355
|
|
3,091,997
|
|
Accrued warranty
costs
|
37,732
|
|
55,878
|
|
Long-term
borrowings
|
446,090
|
|
619,477
|
|
Convertible
notes
|
223,214
|
|
—
|
|
Derivatives
liabilities
|
—
|
|
1,841
|
|
Liability for
uncertain tax positions
|
14,729
|
|
15,353
|
|
Deferred tax
liabilities
|
49,080
|
|
56,463
|
|
Loss contingency
accruals
|
26,458
|
|
28,513
|
|
Operating lease
liabilities
|
13,232
|
|
20,718
|
|
Financing
liabilities
|
81,871
|
|
76,575
|
|
Other non-current
liabilities
|
163,308
|
|
75,334
|
|
TOTAL
LIABILITIES
|
4,644,069
|
|
4,042,149
|
|
Equity:
|
|
|
|
|
|
Common
shares
|
687,033
|
|
703,806
|
|
|
Treasury
stock
|
—
|
|
(11,845)
|
|
|
Additional paid-in
capital
|
(28,236)
|
|
17,179
|
|
|
Retained
earnings
|
940,346
|
|
793,601
|
|
|
Accumulated other
comprehensive loss
|
(28,721)
|
|
(109,607)
|
|
Total Canadian
Solar Inc. shareholders' equity
|
1,570,422
|
|
1,393,134
|
|
Non-controlling
interests in subsidiaries
|
322,363
|
|
31,924
|
|
TOTAL
EQUITY
|
1,892,785
|
|
1,425,058
|
|
TOTAL LIABILITIES
AND EQUITY
|
$
6,536,854
|
|
$
5,467,207
|
|
View original
content:http://www.prnewswire.com/news-releases/canadian-solar-reports-fourth-quarter-and-full-year-2020-results-301250050.html
SOURCE Canadian Solar Inc.