GUELPH, Ontario, March 17, 2022 /PRNewswire/ -- Canadian
Solar Inc. ("Canadian Solar" or the "Company") (NASDAQ: CSIQ)
today announced financial results for the fourth quarter and full
year ended December 31, 2021.
Fourth Quarter 2021 Highlights
- Solar module shipments of 3.8 GW, in line with guidance of 3.7
GW to 3.9 GW.
- 47% increase in revenue year-over-year ("yoy") to $1.53 billion, in line with guidance of
$1.5 billion to $1.6 billion.
- 19.7% gross margin exceeds guidance range of 14% to 16%.
- Net income attributable to Canadian Solar of $26 million, or $0.39 per diluted share.
Full Year 2021 Highlights
- 28% yoy growth in total module shipments to 14.5 GW.
- 52% increase in revenue to $5.3
billion, with steady gross margin improvement in
manufacturing operations throughout the year, as guided.
- Net income attributable to Canadian Solar of $95 million or $1.46 per diluted share.
- 896 MWh in battery storage shipments by the CSI Solar
segment.
- 2.1 GWp in projects monetized by the Global Energy segment,
including 350 MW / 1400 MWh battery storage.
- Global Energy solar project pipeline of 24 GWp and storage
pipeline of 27 GWh as of January
2022.
- Carve-out IPO of CSI Solar Co., Ltd. ("CSI Solar" or the "CSI
Solar subsidiary") remains on track.
Dr. Shawn Qu, Chairman and
CEO, commented, "We ended 2021 on a high note, delivering 47%
year-over-year revenue growth and a nearly 20% gross margin in the
fourth quarter. Over the past decade, we have consistently been a
top 5 global module manufacturer and have pioneered numerous solar
crystalline PV technology advancements as well as business model
innovations. This includes our fast growing battery storage
business, where we delivered nearly 900 MWh in our first year of
launching, and which we expect to double in 2022. While we continue
to manage challenging market conditions, we remain focused on
leveraging the competitive advantages of our integrated business
model to build greater long-term value for our shareholders.
"We are also pleased to report that the carve-out IPO of CSI
Solar remains on track. We received approval from the Shanghai
Stock Exchange and are currently going through the registration
process with the China Securities Regulatory Commission, in line
with usual procedures."
Yan Zhuang, President of
Canadian Solar's CSI Solar subsidiary, said, "Our team's focus
and execution allowed us to deliver on our planned strong
revenue growth and improving profitability in 2021. As one of the
top global solar module brands, our unparalleled track record and
brand recognition create meaningful entry barriers in a rapidly
growing renewable energy market. This places us in a strong
position to benefit from upstream capacity expansions which will
gradually drive costs down. That said, near-term macro challenges
remain as material costs have recently increased again and
logistics costs stay elevated. We continue to focus on delivering
differentiated products and services, expanding our market share,
enhancing our brand and pricing power, and reducing manufacturing
costs as we weather through the challenges. With solar energy at
grid parity in most markets and hybrid solar plus storage
approaching the same status, we believe clean energy is more
attractive than ever before, providing affordable, reliable and
clean energy for many generations to come."
Ismael Guerrero, Corporate VP
and President of Canadian Solar's Global Energy subsidiary,
said, "In 2021, we achieved 2.1 GWp in project sales, including a
1.4 GWh battery storage project, which was one of the world's
largest. We continued to expand our global development portfolio,
with 24 GWp of solar and 27 GWh of battery storage pipeline giving
us a strong platform for growth. At the same time, we continue to
proactively manage risk, as we rebalance our portfolio to reduce
potential currency and policy risks in certain markets, such as
Latin America, and continue to
execute on projects while minimizing the impacts of inflation. Our
focus remains on growing our base of recurring revenue both from
retained assets and contracted services."
Dr. Huifeng Chang, Senior VP
and CFO, added, "In the fourth quarter, we achieved
$1.5 billion in revenue and a 19.7%
gross margin. We were active in green financings, securing
$84 million during the quarter to
support growth in our global project development. We ended the
quarter with a total cash position of $1.43
billion which gives us continued financial flexibility to
support long term growth opportunities."
Fourth Quarter 2021 Results
Total module shipments in the fourth quarter of 2021 were
3.83 GW, a 28% yoy increase and 1% quarter-over-quarter
("qoq") decrease. Of the total, 263 MW were shipped to
the Company's own utility-scale solar power projects.
Net revenues in the fourth quarter of 2021 increased 24% qoq and
47% yoy to $1.53 billion. The
sequential increase was driven by a higher solar module average
selling price ("ASP") and an increase in project sales. The yoy
increase was driven by higher solar shipment volumes and ASP, and
significant growth in the Company's battery storage solutions
business.
Gross profit in the fourth quarter of 2021 was $301 million, up 32% qoq and 114% yoy. Gross
margin in the fourth quarter of 2021 was 19.7%, above guidance of
14% to 16%, as the Company benefited from lower manufacturing costs
and a higher module ASP, partially offset by lower margin project
sales. The fourth quarter also benefited from a U.S. anti-dumping
("AD") and countervailing duty ("CVD") true up. Gross margin was
18.0%, excluding the AD/CVD true-up benefit of $26 million.
Total operating expenses in the fourth quarter of 2021 were
$234 million compared to $176
million in the third quarter of 2021 and $139 million in the fourth quarter of
2020. The sequential and annual increase was mainly
driven by higher shipping and handling expenses, and investments in
research and development to support growth.
Non-cash depreciation and amortization charges in the fourth
quarter of 2021 were $76 million, up 7% qoq and 29% yoy.
The increase was primarily driven by a continued expansion of the
Company's manufacturing capacity.
Net foreign exchange gain in the fourth quarter of 2021 was
$1 million, compared to a net loss of $14 million in the third quarter of 2021 and
a net gain of $4 million in the
fourth quarter of 2020.
Income tax expense in the fourth quarter of 2021 was
$27 million, compared to a $3
million income tax benefit in the third quarter of
2021 and a $2 million income tax
benefit in the fourth quarter of 2020. The expense was a
result of the Company's higher income before income tax and an
increased revenue contribution from higher tax jurisdictions.
Net income attributable to Canadian Solar in the fourth quarter
of 2021 was $26 million, or
$0.39 per diluted share, compared to
net income of $35 million, or
$0.52 per diluted share in the
third quarter of 2021, and net income of $7 million,
or $0.11 per diluted share in
the fourth quarter of 2020. On a non-GAAP basis, net income
attributable to Canadian Solar in the fourth quarter of 2021 was
$10 million, or $0.17 per diluted share. This excludes a
$16 million AD/CVD true-up benefit,
net of income tax effect and AD/CVD provision true-up attributable
to non-controlling interests. For a reconciliation of results under
GAAP to non-GAAP results, see the accompanying table "About
Non-GAAP Financial Measures".
The increase in basic and diluted shares outstanding was
primarily due to the issuance of 3.6 million shares in connection
with the at-the-market equity offering program for the twelve
months ended December 31, 2021, of
which 1.0 million were issued in the fourth quarter. Earnings per
share – diluted ("Diluted EPS") includes the dilutive effect of the
$230 million aggregate principal
amount of convertible notes issued in 2020. 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 outstanding, including 6.3 million
shares issuable upon the conversion of the convertible notes. For
the twelve months ended December 31,
2021, diluted EPS of $1.46 was
calculated from total earnings of $101
million, including 2.5% coupon of $5.3 million, divided by 68.9 million diluted
shares outstanding, including 6.3 million shares issuable upon the
conversion of the convertible notes.
Net cash used in operating activities in the fourth quarter of
2021 was $206 million, compared to net cash provided by
operating activities $29 million in
the third quarter of 2021. The operating cash outflow was mainly
driven by a decrease in advances from customers and accounts
payable due to timing of payments, partially offset by a decrease
in accounts receivable and advances to suppliers.
Total debt was $2.4 billion, as of
December 31, 2021, compared to
$2.3 billion, as of September 30, 2021. The increase was mainly
driven by an increase in working capital facilities. Non-recourse
debt used to finance solar power projects decreased to
$515 million as of December 31,
2021, from $558 million as of
September 30, 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
power purchase agreements 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 6.3 GWp of
solar power plants across six continents. The Company has built a
leadership position in solar project development with over 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 20%
to 2025, 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 2025, the Company plans to reach at least 1 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, operations and maintenance (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 11 GW of projects under O&M
agreements by 2025.
Management targets to achieve the following over the next few
years:
Global Energy
Targets
|
2021A
|
2022E
|
2023E
|
2024E
|
2025E
|
Annual Project Sales,
GWp
|
2.1
|
2.1-2.6
|
2.8-3.3
|
3.5-4.0
|
4.0-4.5
|
Operational O&M
Projects, GWp
|
2.1
|
4.3
|
6.5
|
9.2
|
11.0
|
Net Cumulative
Projects Retained, MWp
|
292
|
370
|
630
|
1,000
|
1,300
|
Gross Cumulative
Projects Retained, MWp
|
748
|
1,500
|
2,580
|
4,200
|
7,000
|
|
*Net projects
retained represents CSIQ's net partial ownership of solar projects;
the gross number represents the aggregate size of projects
including the share which is not owned by CSIQ.
|
Solar Project Pipeline
As of January 31, 2022, the
Company's total project pipeline was 24.4 GWp, including 1.6 GWp
under construction, 4.2 GWp of backlog, and 18.6 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
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.
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 January 31, 2022) – MWp
|
Region
|
In
Construction
|
Backlog
|
Pipeline
|
Total
|
North
America
|
262
|
509
|
7,247
|
8,018
|
Latin
America
|
841*
|
2,435
|
3,437
|
6,713
|
Europe, the Middle
East and Africa ("EMEA")
|
-
|
294
|
4,379
|
4,673
|
Japan
|
174
|
172
|
72
|
418
|
Asia Pacific
excluding Japan and China
|
345
|
191
|
1,695
|
2,231
|
China**
|
-
|
550
|
1,770
|
2,320
|
Total
|
1,622
|
4,151
|
18,600
|
24,373
|
|
*Note: All numbers
are gross MWp, including 403 MWp in construction in Latin America
already sold to third parties.
**Note: China
portfolio is part of the Global Energy segment from November
2021.
|
The Company has 345 MWp 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, 2022:
Expected COD
Schedule – MWp
|
|
|
2022
|
|
2023
|
|
2024 and
thereafter
|
|
Total
|
|
205
|
|
0
|
|
140
|
|
345
|
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 January 31, 2022) –
MWh
|
Region
|
In
Construction
|
Backlog
|
Pipeline
|
Total
|
North
America
|
2,681
|
-
|
14,725
|
17,406
|
Latin
America
|
-
|
465
|
3,185
|
3,650
|
Europe, the Middle
East and Africa ("EMEA")
|
-
|
56
|
2,611
|
2,667
|
Japan
|
-
|
-
|
19
|
19
|
Asia Pacific excluding Japan
and China
|
-
|
20
|
2,280
|
2,300
|
China*
|
-
|
300
|
800
|
1,100
|
Total
|
2,681
|
841
|
23,620
|
27,142
|
*China
portfolio is part of the Global Energy segment beginning November
2021.
|
|
|
|
|
|
|
Solar Power Plants and Battery Storage Projects in
Operation
As of January 31, 2022, the
Company's solar power plants in operation totaled 445 MWp, with a
combined estimated net resale value of approximately $260 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
|
31
|
16
|
82
|
445
|
Note: 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.
China portfolio is part of the Global Energy segment from November
2021.
|
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
|
|
Twelve Months
Ended
|
|
|
December
31,
2021
|
September
30,
2021
|
December
31,
2020
|
|
December
31,
2021
|
December
31,
2020
|
|
Net
revenues
|
232,418
|
139,989
|
372,617
|
|
1,124,083
|
726,167
|
|
Cost of
revenues
|
224,359
|
78,848
|
340,403
|
|
930,099
|
577,052
|
|
Gross
profit
|
8,059
|
61,141
|
32,214
|
|
193,984
|
149,115
|
|
Operating
expenses
|
22,787
|
30,442
|
30,434
|
|
96,805
|
95,701
|
|
Income (loss) from
operations
|
(14,728)
|
30,699
|
1,780
|
|
97,179
|
53,414
|
|
Gross
margin
|
3.5%
|
43.7%
|
8.6%
|
|
17.3%
|
20.5%
|
|
Operating
margin
|
-6.3%
|
21.9%
|
0.5%
|
|
8.6%
|
7.4%
|
|
|
|
*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
|
10.4
|
Wafer
|
11.5
|
11.5
|
14.5
|
Cell
|
13.9
|
13.9
|
14.5
|
Module
|
23.9
|
27.9
|
32.0
|
Note: 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
|
|
Twelve Months
Ended
|
|
December
31,
2021
|
September 30,
2021
|
December
31,
2020
|
|
December
31,
2021
|
December
31,
2020
|
Net
revenues
|
1,343,278
|
1,149,215
|
784,588
|
|
4,371,603
|
3,105,044
|
Cost of
revenues
|
1,056,750
|
976,212
|
678,410
|
|
3,689,126
|
2,496,153
|
Gross
profit
|
286,528
|
173,003
|
106,178
|
|
682,477
|
608,891
|
Operating
expenses
|
204,969
|
142,734
|
103,378
|
|
608,345
|
355,786
|
Income from
operations
|
81,559
|
30,269
|
2,800
|
|
74,132
|
253,105
|
Gross
margin
|
21.3%
|
15.1%
|
13.5%
|
|
15.6%
|
19.6%
|
Operating
margin
|
6.1%
|
2.6%
|
0.4%
|
|
1.7%
|
8.2%
|
|
*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 m
anagement'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)
|
|
Q4
2021
|
% of Net
Revenues
|
|
Full Year
2021
|
% of Net
Revenues
|
Asia
|
546
|
42
|
|
1,795
|
43
|
Americas
|
493
|
38
|
|
1,568
|
38
|
Europe and
others
|
257
|
20
|
|
790
|
19
|
Total
|
1,296
|
100
|
|
4,153
|
100
|
|
*Excludes sales
from CSI Solar to Global Energy.
|
CSI Solar shipped 3.8 GW of modules to more than
70 countries in the fourth quarter of 2021. For both
the fourth quarter and full year of 2021, the top five markets
ranked by shipments were China,
the U.S., Brazil, Germany and Japan.
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 O&M agreements, which include future battery capacity
augmentation services and bring in longer term, stable income.
In 2021, CSI Solar delivered 896 MWh of battery storage projects
that were recognized in revenue.
The table below sets forth CSI Solar's battery storage system
integration's project pipeline as of January 31, 2022.
|
LTSA (Long
Term Service
Agreement)
|
Contracted/
In
Construction
|
Forecast
|
Pipeline
|
Total
|
Storage
(MWh)
|
300
|
2,043
|
390
|
3,619
|
6,352
|
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
recent geopolitical conflicts. Management's views and estimates are
subject to change without notice.
For the first quarter of 2022, the Company expects total module
shipments to be in the range of 3.6 GW to 3.8 GW, including
approximately 210 MW of module shipments to the Company's own
projects. Total revenues are expected to be in the range of
$1.25 billion to $1.35 billion. Gross margin is expected to be
between 14.5% and 15.5%, reflecting the impact of higher material
costs, which the Company plans to partially mitigate through
pricing and sales channel strategies.
For the full year 2022, the Company reiterates its prior outlook
for total shipments to be in the range of 20 GW to 22 GW, while
increasing its outlook for total battery storage shipments to be in
the range of 1.8 GWh to 1.9 GWh, from 1.4 GWh to 1.5
GWh previously. The Company expects total project sales of 2.1
GW to 2.6 GW, from 2.4 GW to 2.9 GW previously. The Company is
increasing its expectations for total revenue to be in the range of
$7.0 billion to $7.5 billion, from $6.5
billion to $7.0 billion
previously.
Dr. Shawn Qu, Chairman and
CEO, commented, "First quarter margins will be impacted by
the recent uptick in material costs, partially mitigated through
pricing and sales channel strategies. Shipping costs are also
expected to remain elevated, but should start to normalize with
improvement in the global pandemic situation later in the year.
Longer term, our focus remains on profitable revenue growth and
building shareholder value as we continue to leverage our
advantaged market position and competitiveness. We will continue to
invest in technology and upstream capacity and expect to continue
growing our solar module market share. We are also excited by the
significant progress and accelerating growth of our battery storage
business, which is a large greenfield opportunity for us. As with
our other markets, we plan to succeed by introducing innovative
products, including our own battery storage product, which we
expect to launch in the coming quarters. Overall, long-term market
fundamentals remain positive with both company and market-specific
catalysts in each of our business segments."
Financial Performance Forecast of CSI Solar, as Part of Its
Submission to the SSE in Connection with the STAR Market IPO
Application (December 2, 2021
Submission)
In connection with the previously announced STAR Market IPO
application of CSI Solar, CSI Solar has responded to certain
inquiries from the SSE regarding its business and industry. This is
in line with the usual review procedures of the SSE. The full
question and answer document for the inquiries is posted on the
SSE's website in Chinese at
http://kcb.sse.com.cn/renewal/xmxq/index.shtml?auditId=961&anchor_type=0.
As part of the SSE's inquiries, CSI Solar was requested to
provide preliminary estimates of its financial performance forecast
for 2022. In response, CSI Solar provided preliminary estimates in
its application documents on December 2,
2021, as follows, determined in accordance with Accounting
Standards for Business Enterprises under Chinese generally accepted
accounting principles ("Chinese GAAP").
For 2022, CSI Solar estimates its total module shipments to be
in the range of 14 GW to 21 GW, and its revenues to be in the range
of RMB33 billion to RMB48 billion, taking into account current and
future trends in the price of modules and income from other main
business operations. Also for 2022, net profit attributable to CSI
Solar is expected to be in the range of RMB700 million to RMB1.7
billion, and net profit attributable to CSI Solar after
deduction of non-recurring profit or loss is expected to be in the
range of RMB700 million to
RMB1.6 billion. The forecast is
generally consistent with Canadian Solar's guidance for full year
2022 provided in "Business Outlook" above.
The forecast is subject to significant assumptions,
qualifications, uncertainties and limitations. See "Important
Disclaimers Regarding CSI Solar's Forecast" below.
Recent Developments
On March 8, 2022, Canadian Solar
announced it signed two 10-year PPAs with Axpo Italia for the
purchase of 70% of the energy produced by two solar power plants
under development totaling 84 MWp. Axpo Italia is one of the
largest market operators in the free energy market in Italy and a highly reliable and bankable
renewables generator counterparty.
On February 25, 2022, Canadian
Solar announced that its Global Energy business group signed
private PPAs with Usinas Siderurgicas de Minas Gerais S.A.,
one of the largest steelmakers in Latin America, committing
50% of the total electricity production of a 381 MWp solar power
project in Brazil.
On January 5, 2022, Canadian Solar
announced that its wholly-owned subsidiary Recurrent Energy
completed a purchase and sale agreement to sell its 150 MWac
Firefly Energy solar project in Virginia to Appalachian Power. The Firefly
project will be developed and constructed by Recurrent Energy under
a Build Transfer Agreement. Once construction is completed,
Appalachian Power will be the long-term owner of the project.
On December 14, 2021, Canadian
Solar announced that it completed the sale of its 635 MWp Jaíba V
solar project in Brazil to VTRM, a
leading renewable energy company in Brazil.
On December 13, 2021, Canadian
Solar announced that its majority-owned subsidiary CSI
Solar Co., Ltd. received approval for the proposed initial
public offering and listing of its shares by the stock
listing committee of the Science and Technology
Innovation Board ("STAR Market") of the Shanghai Stock
Exchange ("SSE"). As a next step, CSI Solar will be
required to go through the registration process with the China
Securities Regulatory Commission before it can complete
the listing of its shares on the STAR Market.
On December 2, 2021, Canadian
Solar announced that its indirectly wholly-owned subsidiary
Canadian Solar EMEA Capital Markets, S.A.U., successfully completed
a € 30 million green bond issuance due in December
2026 under its € 100 million Canadian Solar EMEA Green Medium
Term Note Program in the Spanish multilateral trading facility
(MTF) for debt securities (MARF).
On November 29, 2021, Canadian
Solar announced that it completed its previously announced
"at-the-market" offering program of common shares, having sold
3,639,918 of its common shares, which raised $150
million in gross proceeds before deducting commissions and
offering expenses.
On November 24, 2021, Canadian
Solar announced that its majority-owned subsidiary CSI Solar Co.,
Ltd. signed a strategic cooperation framework agreement with
Contemporary Amperex Technology Co., Ltd., a global leader of new
energy innovative technologies to cooperate holistically in the
areas of battery storage system solutions, supply of lithium-ion
battery modules, operation and maintenance services of battery
storage projects, and innovative renewable energy
technology.
On November 19, 2021, Canadian
Solar announced that its indirectly wholly-owned subsidiary
Canadian Solar EMEA Capital Markets, S.A.U., registered
in Spain a € 100 million medium term note program,
dated November 15, 2021, in the Spanish multilateral trading
facility (MTF) for debt securities (MARF). The notes may qualify as
"green bonds" pursuant to the International Capital Market
Association (ICMA) Green Bond Principles and the Green
Financing Framework adopted by the Company in Europe, the
Middle East and Africa, or EMEA region. With the
note program, Canadian Solar aims to use the fund
proceeds to finance the development and acquisition of new solar PV
and battery storage projects, both nationally and
internationally.
Conference Call Information
The Company will
hold a conference call at 8:00 a.m.
U.S. Eastern Daylight Time on Thursday,
March 17, 2022 (8:00 p.m.,
Thursday, March 17, 2022 in
Hong Kong) to discuss its fourth
quarter and full year 2021 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 3789541.
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 8:00
a.m. U.S. Eastern Daylight Time on Friday, March 25, 2022 (8:00 p.m., March 25,
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), 400-6322-162 (toll-free from Mainland China) or
+1-646-254-3697 from international locations. The passcode for the
replay is 3789541. 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 20 years, Canadian Solar has
successfully delivered around 67 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 6.3 GWp in over 20
countries across the world. Currently, the Company has 445 MWp of
projects in operation, nearly 6 GWp of projects under construction
or in backlog (late-stage), and an additional 18.6 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 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.,
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 that
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 filings with the Securities and Exchange Commission (the
"SEC"), including its annual report
on Form 20-F filed on April 19, 2021.
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.
Important Disclaimers Regarding CSI Solar's Forecast
Inherent Uncertainty of the Forecast
The forecast is based on numerous assumptions, many of which are
beyond the control of CSI Solar and Canadian Solar, and some or all
of which may not materialize.
Additionally, to the extent that the assumptions are based upon
future business decisions and objectives, they are subject to
change. Although the forecast is based on reasonable expectations
developed by CSI Solar's management, the assumptions and estimates
underlying the forecast are subject to significant business,
economic, regulatory and competitive uncertainties and
contingencies, many of which are beyond the control of CSI Solar
and Canadian Solar. Accordingly, the forecast is only an estimate
and is necessarily speculative in nature. It is expected that some
or all of the assumptions in the forecast will not be realized and
that actual results will vary from the forecast. Such variations
may be material and may increase over time. In light of the
foregoing, readers are cautioned not to place undue reliance on the
forecast. The forecast should not be regarded as a representation
or warranty by Canadian Solar, CSI Solar or any other person that
the forecast can or will be achieved.
Chinese GAAP
The forecast was prepared in accordance with Chinese GAAP,
whereas Canadian Solar's financial statements are prepared in
accordance with generally accepted accounting principles in
the United States ("U.S. GAAP").
CSI Solar has not prepared a reconciliation of the forecast between
Chinese GAAP and U.S. GAAP and has not quantified such differences.
In addition, Canadian Solar's financial statements eliminate all
intercompany transactions between Canadian Solar and its CSI Solar
and Global Energy subsidiaries. As a result, the forecast is not
directly comparable to the corresponding consolidated financial
performance of Canadian Solar. Investors should consult their own
professional advisors for an understanding of the differences
between Chinese GAAP and U.S. GAAP and how those differences might
affect the information contained in the forecast.
Not Compliant with SEC, AICPA or PCAOB Guidelines
The forecast has not been prepared or presented in accordance
with the standards and guidelines of the SEC, the American
Institute of Certified Public Accountants (the "AICPA") or the
Public Company Accounting Oversight Board (United States) (the "PCAOB") for the
preparation and presentation of projected or forecasted financial
information. Accordingly, the forecast does not disclose all
information required by the SEC, the AICPA and the PCAOB for
projected or forecasted financial information.
No Audit or Review
The forecast has not been audited or reviewed by the independent
public accountants of Canadian Solar or CSI Solar. The forecast
should not be relied upon by investors to provide the same type or
quality of information as information that has been subject to an
audit or review by independent auditors.
No Offer or Solicitation
This communication is not an offer to sell or a solicitation of
an offer to buy securities of Canadian Solar or CSI Solar.
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
December 31, 2021
(In Thousands of U.S. Dollars, Except Percentages)
|
|
|
|
CSI
Solar
|
|
Global
Energy
|
|
Elimination
and
unallocated
items (1)
|
|
Total
|
Net
revenues
|
|
|
1,343,278
|
|
232,418
|
|
(46,977)
|
|
1,528,719
|
Cost of
revenues
|
|
|
1,056,750
|
|
224,359
|
|
(53,684)
|
|
1,227,425
|
Gross
profit
|
|
|
286,528
|
|
8,059
|
|
6,707
|
|
301,294
|
Gross
margin
|
|
|
21.3%
|
|
3.5%
|
|
—
|
|
19.7%
|
Income (loss) from
operations (2)
|
|
|
81,559
|
|
(14,728)
|
|
594
|
|
67,425
|
|
|
|
|
|
|
|
|
|
|
|
Select Financial
Data – CSI Solar and Global Energy
|
|
|
|
Twelve Months
Ended December 31, 2021
(In Thousands of U.S. Dollars, Except Percentages)
|
|
|
|
CSI
Solar
|
|
Global
Energy
|
|
Elimination
and
unallocated
items (1)
|
|
Total
|
Net
revenues
|
|
|
4,371,603
|
|
1,124,083
|
|
(218,517)
|
|
5,277,169
|
Cost of
revenues
|
|
|
3,689,126
|
|
930,099
|
|
(251,368)
|
|
4,367,857
|
Gross
profit
|
|
|
682,477
|
|
193,984
|
|
32,851
|
|
909,312
|
Gross
margin
|
|
|
15.6%
|
|
17.3%
|
|
—
|
|
17.2%
|
Income from
operations (2)
|
|
|
74,132
|
|
97,179
|
|
19,070
|
|
190,381
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
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 (2)
|
|
|
253,105
|
|
53,414
|
|
(86,089)
|
|
220,430
|
|
(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
December 31,
2021
|
|
Three Months
Ended
September 30,
2021
|
|
Three Months
Ended
June 30,
2021
|
|
Three Months
Ended
December 31,
2020
|
|
(In Thousands of
U.S. Dollars)
|
CSI
Solar Revenues:
|
|
|
|
|
|
|
|
Solar
modules
|
1,060,303
|
|
872,288
|
|
843,463
|
|
586,820
|
Solar system
kits
|
79,085
|
|
98,920
|
|
88,057
|
|
39,071
|
Battery storage
solutions
|
88,430
|
|
62,977
|
|
68,890
|
|
4,953
|
China energy/EPC
(incl. electricity
sales)*
|
55,051
|
|
22,337
|
|
94,347
|
|
15,194
|
Others
|
13,432
|
|
32,939
|
|
54,290
|
|
21,999
|
Subtotal
|
1,296,301
|
|
1,089,461
|
|
1,149,047
|
|
668,037
|
Global Energy
Revenues:
|
|
|
|
|
|
|
|
Solar and battery
storage power
projects*
|
218,509
|
|
126,224
|
|
266,598
|
|
354,671
|
O&M and asset
management services
|
8,730
|
|
8,031
|
|
8,607
|
|
8,365
|
Others
|
5,179
|
|
5,734
|
|
5,409
|
|
9,581
|
Subtotal
|
232,418
|
|
139,989
|
|
280,614
|
|
372,617
|
Total net
revenues
|
1,528,719
|
|
1,229,450
|
|
1,429,661
|
|
1,040,654
|
|
* China Energy assets are part of the
Global Energy segment beginning November 2021, although the EPC
business remains part of CSI Solar.
|
|
Select Financial
Data - CSI Solar and Global Energy
|
|
Twelve Months
Ended
December 31,
2021
|
|
Twelve Months
Ended
December 31,
2020
|
|
(In Thousands of
U.S. Dollars)
|
CSI
Solar Revenues:
|
|
|
|
Solar
modules
|
3,328,301
|
|
2,348,724
|
Solar system
kits
|
302,133
|
|
157,656
|
Battery storage
solutions
|
222,655
|
|
7,899
|
China energy/EPC
(incl. electricity sales)*
|
178,830
|
|
175,388
|
Others
|
121,167
|
|
60,661
|
Subtotal
|
4,153,086
|
|
2,750,328
|
Global Energy
Revenues:
|
|
|
|
Solar and battery
storage power projects*
|
1,064,178
|
|
654,827
|
O&M and asset
management services
|
35,334
|
|
26,386
|
Others
|
24,571
|
|
44,954
|
Subtotal
|
1,124,083
|
|
726,167
|
Total net
revenues
|
5,277,169
|
|
3,476,495
|
|
* China Energy assets are part of the
Global Energy segment beginning November 2021, although the EPC
business
remains part of CSI Solar.
|
|
Canadian Solar
Inc.
|
|
Unaudited
Condensed Consolidated Statements of Operations
|
|
(In Thousands of
U.S. Dollars, Except Share and Per Share Data)
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
December 31,
|
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
$
1,528,719
|
|
$
1,229,450
|
|
$
1,040,654
|
|
$
5,277,169
|
|
$
3,476,495
|
Cost of
revenues
|
1,227,425
|
|
1,000,821
|
|
899,566
|
|
4,367,857
|
|
2,786,581
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
301,294
|
|
228,629
|
|
141,088
|
|
909,312
|
|
689,914
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Selling and
distribution
expenses
|
129,463
|
|
101,526
|
|
64,123
|
|
398,650
|
|
224,243
|
|
General and
administrative expenses
|
89,663
|
|
83,244
|
|
70,099
|
|
308,942
|
|
225,597
|
|
Research and
development expenses
|
19,306
|
|
13,493
|
|
10,040
|
|
58,407
|
|
45,167
|
|
Other operating
income
|
(4,563)
|
|
(22,727)
|
|
(5,653)
|
|
(47,068)
|
|
(25,523)
|
Total operating
expenses
|
233,869
|
|
175,536
|
|
138,609
|
|
718,931
|
|
469,484
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
67,425
|
|
53,093
|
|
2,479
|
|
190,381
|
|
220,430
|
Other income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(15,532)
|
|
(13,153)
|
|
(17,984)
|
|
(58,153)
|
|
(71,874)
|
|
Interest
income
|
2,713
|
|
2,253
|
|
2,415
|
|
11,051
|
|
9,306
|
|
Gain on change in
fair
value of derivatives, net
|
13,485
|
|
9,878
|
|
6,098
|
|
23,785
|
|
50,001
|
|
Foreign exchange
loss,
net
|
(12,937)
|
|
(23,533)
|
|
(1,992)
|
|
(47,234)
|
|
(64,820)
|
|
Investment income
(loss)
|
9,327
|
|
2,890
|
|
10,321
|
|
18,634
|
|
(8,559)
|
Other expenses,
net
|
(2,944)
|
|
(21,665)
|
|
(1,142)
|
|
(51,917)
|
|
(85,946)
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes
and equity in earnings of
unconsolidated investees
|
64,481
|
|
31,428
|
|
1,337
|
|
138,464
|
|
134,484
|
Income tax benefit
(expense)
|
(26,516)
|
|
2,879
|
|
2,463
|
|
(35,844)
|
|
1,983
|
Equity in earnings
of
unconsolidated investees
|
1,647
|
|
3,821
|
|
2,919
|
|
7,256
|
|
10,779
|
Net
income
|
39,612
|
|
38,128
|
|
6,719
|
|
109,876
|
|
147,246
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net
income
attributable to non-
controlling interests
|
13,648
|
|
2,884
|
|
84
|
|
14,628
|
|
543
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to
Canadian Solar Inc.
|
$
25,964
|
|
$
35,244
|
|
$
6,635
|
|
$
95,248
|
|
$
146,703
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
$
0.41
|
|
$
0.56
|
|
$
0.11
|
|
$
1.55
|
|
$
2.46
|
Shares used in
computation -
basic
|
63,470,059
|
|
62,794,480
|
|
59,801,709
|
|
61,614,391
|
|
59,575,898
|
Earnings per share -
diluted
|
$
0.39
|
|
$
0.52
|
|
$
0.11
|
|
$
1.46
|
|
$
2.38
|
Shares used in
computation -
diluted
|
70,506,025
|
|
69,857,925
|
|
61,147,256
|
|
68,872,102
|
|
62,306,819
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
Income
|
$
39,612
|
|
$
38,128
|
|
$
6,719
|
|
$
109,876
|
|
$
147,246
|
Other
comprehensive income
(net of tax of nil):
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation
adjustment
|
22,013
|
|
(26,236)
|
|
58,943
|
|
(26,296)
|
|
76,188
|
De-recognition of
commodity
hedge and interest rate swap
|
—
|
|
—
|
|
—
|
|
—
|
|
10,724
|
Gain (loss) on
changes in fair
value of derivatives
|
59
|
|
—
|
|
(256)
|
|
59
|
|
(4,115)
|
Comprehensive
income
|
61,684
|
|
11,892
|
|
65,406
|
|
83,639
|
|
230,043
|
Less: comprehensive
income
(loss) attributable to non-
controlling interests
|
18,281
|
|
(1,053)
|
|
84
|
|
10,296
|
|
2,412
|
Comprehensive
income
attributable to Canadian Solar
Inc.
|
$
43,403
|
|
$
12,945
|
|
$
65,322
|
|
$
73,343
|
|
$
227,631
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Solar
Inc.
|
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
(In Thousands
of U.S. Dollars)
|
|
|
|
|
|
December
31,
|
|
December 31,
|
|
|
|
2021
|
|
2020
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$ 869,831
|
|
$
1,178,752
|
|
|
Restricted
cash
|
560,633
|
|
458,334
|
|
|
Accounts receivable
trade, net
|
651,372
|
|
408,958
|
|
|
Accounts receivable,
unbilled
|
37,244
|
|
28,461
|
|
|
Amounts due from
related parties
|
73,042
|
|
5,834
|
|
|
Inventories
|
1,192,374
|
|
695,981
|
|
|
Value added tax
recoverable
|
125,882
|
|
102,460
|
|
|
Advances to
suppliers
|
225,879
|
|
182,146
|
|
|
Derivative
assets
|
7,286
|
|
23,351
|
|
|
Project
assets
|
594,107
|
|
747,764
|
|
|
Prepaid expenses and
other current assets
|
434,177
|
|
353,781
|
|
Total current
assets
|
4,771,827
|
|
4,185,822
|
|
Restricted
cash
|
3,818
|
|
2,629
|
|
Property, plant and
equipment, net
|
1,401,877
|
|
1,157,731
|
|
Solar power systems,
net
|
108,263
|
|
158,262
|
|
Deferred tax assets,
net
|
236,503
|
|
170,656
|
|
Advances to
suppliers
|
34,239
|
|
97,173
|
|
Prepaid land use
right
|
71,011
|
|
62,414
|
|
Investments in
affiliates
|
98,819
|
|
78,291
|
|
Intangible assets,
net
|
18,992
|
|
22,429
|
|
Project
assets
|
433,254
|
|
389,702
|
|
Right-of-use
assets
|
35,286
|
|
26,793
|
|
Other non-current
assets
|
174,453
|
|
184,952
|
|
TOTAL
ASSETS
|
$
7,388,342
|
|
$
6,536,854
|
|
|
|
|
|
|
|
|
|
Canadian Solar
Inc.
|
|
Unaudited
Condensed Consolidated Balance Sheets (Continued)
|
|
(In Thousands
of U.S. Dollars)
|
|
|
|
|
December
31,
|
|
December 31,
|
|
|
2021
|
|
2020
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
borrowings
|
$
1,271,215
|
|
$
1,202,285
|
|
|
Long-term borrowings
on project assets -
current
|
321,655
|
|
198,794
|
|
|
Accounts
payable
|
502,995
|
|
514,742
|
|
|
Notes
payable
|
881,184
|
|
710,636
|
|
|
Amounts due to
related parties
|
143
|
|
314
|
|
|
Other
payables
|
667,854
|
|
508,839
|
|
|
Advance from
customers
|
135,512
|
|
189,470
|
|
|
Derivative
liabilities
|
2,622
|
|
10,755
|
|
|
Operating lease
liabilities
|
12,185
|
|
15,204
|
|
|
Other current
liabilities
|
242,783
|
|
237,316
|
|
Total current
liabilities
|
4,038,148
|
|
3,588,355
|
|
Accrued warranty
costs
|
45,146
|
|
37,732
|
|
Long-term
borrowings
|
523,634
|
|
446,090
|
|
Convertible
notes
|
224,675
|
|
223,214
|
|
Liability for
uncertain tax positions
|
7,448
|
|
14,729
|
|
Deferred tax
liabilities
|
48,150
|
|
49,080
|
|
Loss contingency
accruals
|
15,148
|
|
26,458
|
|
Operating lease
liabilities
|
23,215
|
|
13,232
|
|
Financing
liabilities
|
53,641
|
|
81,871
|
|
Other non-current
liabilities
|
282,699
|
|
163,308
|
|
TOTAL
LIABILITIES
|
5,261,904
|
|
4,644,069
|
|
Equity:
|
|
|
|
|
|
Common
shares
|
835,543
|
|
687,033
|
|
|
Additional paid-in
capital
|
(19,428)
|
|
(28,236)
|
|
|
Retained
earnings
|
1,035,552
|
|
940,304
|
|
|
Accumulated other
comprehensive loss
|
(50,584)
|
|
(28,679)
|
|
Total Canadian
Solar Inc. shareholders'
equity
|
1,801,083
|
|
1,570,422
|
|
Non-controlling
interests in subsidiaries
|
325,355
|
|
322,363
|
|
TOTAL
EQUITY
|
2,126,438
|
|
1,892,785
|
|
TOTAL LIABILITIES
AND EQUITY
|
$
7,388,342
|
|
$
6,536,854
|
|
About Non-GAAP Financial Measures
To supplement its financial disclosures presented in accordance
with GAAP, the Company uses non-GAAP measures which are adjusted
from the most comparable GAAP measures for certain items as
described below. The Company presents non-GAAP net income and
diluted earnings per share so that readers can better understand
the underlying operating performance of the business before the
impact of AD/CVD true-up provisions. The non-GAAP numbers are not
measures of financial performance under GAAP, and should not be considered in
isolation or as an alternative to other measures determined in
accordance with GAAP. These non-GAAP measures may differ from
non-GAAP measures used by other companies, and therefore their
comparability may be limited.
|
Statement of
Operations Data:
(In Thousands of U.S.
Dollars, Except Share and Per Share Data)
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December 31,
2021
|
|
December 31,
2020
|
|
December 31,
2021
|
|
December 31,
2020
|
|
|
|
|
|
|
|
|
|
GAAP net income
attributable to Canadian Solar
Inc.
|
$ 25,964
|
|
$ 6,635
|
|
$ 95,248
|
|
$ 146,703
|
Non-GAAP income
adjustment
items:
|
|
|
|
|
|
|
|
|
AD/CVD provision
true-up
|
(26,440)
|
|
2,184
|
|
(38,311)
|
|
(17,917)
|
|
Tax impact
|
6,835
|
|
(541)
|
|
9,904
|
|
4,440
|
|
AD/CVD provision
true-up
attributable to non-controlling
interests
|
4,001
|
|
-
|
|
5,797
|
|
-
|
Non-GAAP net income
attributable to
Canadian Solar Inc.
|
$
10,360
|
|
$
8,278
|
|
$
72,638
|
|
$
133,226
|
|
|
|
|
|
|
|
|
|
GAAP income per share
- diluted
|
$ 0.39
|
|
$ 0.11
|
|
$ 1.46
|
|
$ 2.38
|
Non-GAAP income per
share -
diluted
|
$ 0.17
|
|
$ 0.14
|
|
$ 1.13
|
|
$ 2.16
|
Shares used in
computation - diluted
|
70,506,025
|
|
61,147,256
|
|
68,872,102
|
|
62,306,819
|
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
|
View original
content:https://www.prnewswire.com/news-releases/canadian-solar-reports-fourth-quarter-and-full-year-2021-results-301504922.html
SOURCE Canadian Solar Inc.