GUELPH,
ON, Nov. 22, 2022 /PRNewswire/
-- Canadian Solar Inc. ("Canadian Solar" or the
"Company") (NASDAQ: CSIQ) today announced financial results for the
third quarter ended September 30,
2022, with 57% year-over-year ("yoy") revenue growth and net
income of $1.12 per diluted share as
the Company continues to prioritize profitable growth.
Highlights
- 18.8% gross margin exceeds the guidance range of 15.0% to
16.5%.
- 57% increase in revenue to $1.93
billion, compared to $1.23
billion in 3Q 2021.
- 123% increase in net income attributable to Canadian Solar to
$1.12 per diluted share compared to
$0.52 per diluted share in 3Q
2021.
- 62% increase in solar module shipments to 6.0 GW, compared to
3.7 GW in 3Q 2021.
- Global Energy battery storage project development pipeline expands to 40
GWh and solar project development
pipeline at 25 GWp, as of September 30,
2022.
- Company expects full year 2023 module shipments to be in the
range of 30 GW to 35 GW, representing 56% yoy growth at the
mid-point of the range.
- Carve-out IPO of CSI Solar Co., Ltd. ("CSI Solar" or the "CSI
Solar subsidiary") back on track awaiting completion of CSRC
registration.
Dr. Shawn Qu, Chairman and
CEO, commented, "We achieved a 123% increase in net income on a
year-over-year basis, despite the headwinds from ongoing COVID-19
shutdowns and macroeconomic challenges. We continue to execute our
long-term strategy and build on our competitive position with a
further expansion of our upstream capacity and increased level of
vertical integration in our solar manufacturing capacity. The
benefits of greater control over our supply chain and an improved
cost structure will further strengthen our competitive moat,
driving a differentiated value proposition for our customers
through better products with lower carbon footprint. We are also
actively evaluating options in the U.S. market given the recent
passing of the Inflation Reduction Act and its potential positive
impact as another growth catalyst. Finally, after a short
procedural pause, CSI Solar's carve-out IPO is back on track
awaiting registration with the China Securities Regulatory
Commission."
Yan Zhuang, President of
Canadian Solar's CSI Solar subsidiary, said, "We achieved
significant growth in both profit and volume during the third
quarter, driven by strong demand, ongoing reductions in
manufacturing cost, and currency benefits from a strong U.S. Dollar
relative to the Renminbi. CSI Solar continues to successfully
balance growth and profitability, prioritizing margins by enhancing
our pricing power in higher-priced markets and delivering greater
system-value to our customers. With that in mind, we officially
launched two proprietary battery storage products, the SolBank for
large utility scale applications and the EP Cube for residential
applications, which received an overwhelmingly positive response
from customers. CSI Solar's battery
storage turnkey pipeline at the end of the third quarter more than
doubled to 25 GWh, with several new projects across the U.S. and
Europe recently signed. Supported
by strong partnerships through the battery storage supply chain, we
are confident that energy storage will become an increasingly
important driver of our long-term growth and value creation."
Ismael Guerrero, Corporate VP
and President of Canadian Solar's Global Energy subsidiary,
said, "The third quarter was, as anticipated, a sequentially
smaller but profitable quarter for Global Energy as we monetized
around 890 MWp of solar projects. The majority of projects sold
were earlier-stage pre-construction projects in the U.S. and
Brazil, and a small operational
project in Japan, supporting a 47%
gross margin during the quarter. Strategically, we are focusing
more resources on developing battery storage projects, both
stand-alone and hybrid, where we have an edge and can not only help
our customers de-carbonize operations and electric grids, but also
de-risk project portfolios, enhance overall project values and
meaningfully contribute to the stability and reliability of the
grid."
Dr. Huifeng Chang, Senior VP
and CFO, added, "In the third quarter, we achieved 57% revenue
growth year-over-year and expanded our gross margin to 18.8%,
delivering net income of $1.12 per
diluted share. Our team continues to do a great job managing
inventory levels to support our customers, while maintaining a
healthy balance sheet to support our long-term working capital,
product roadmap and capacity expansion strategy. We ended the
quarter with a total cash position of $2.0
billion and remain well positioned to benefit from the
acceleration in growth the industry is seeing worldwide in both
solar and battery storage."
Third Quarter 2022 Results
Total module shipments recognized as revenues in the third
quarter of 2022 were 6.0 GW, up 62% yoy. Of the total, 196
MW were shipped to the Company's own utility-scale solar
power projects.
Net revenues in the third quarter of 2022 were up 57% yoy and
down 16% quarter-over-quarter ("qoq") to $1.93 billion. The sequential decline primarily
reflects lower revenue from project sales and battery storage
solutions and a small decline in module average selling price
("ASP"). This was partially offset by higher solar module shipment
volumes. The yoy improvement was mainly driven by an increase in
module shipments and ASPs.
Gross profit in the third quarter of 2022 was $363 million, up 59% yoy and down 2%
qoq. Gross margin in the third quarter of 2022 was 18.8%,
compared to 16.0% in the second quarter 2022, and considerably
above prior guidance. The sequential gross margin increase was
mainly driven by lower manufacturing costs that were also
attributable to the depreciation of the Renminbi relative to the
U.S. Dollar, higher margin contribution from project sales, and
lower sales from battery storage solutions.
Total operating expenses in the third quarter of 2022 were
$274 million compared to $255
million in the second quarter of 2022 and $176 million in the third quarter of
2021. The sequential increase was mainly driven by an
impairment charge related to certain manufacturing assets and
higher shipping and handling expenses.
Depreciation and amortization charges in the third quarter of
2022 were $56 million, compared
to $63 million in the second quarter
of 2022 and $71 million in the third
quarter of 2021.
Net interest income in the third quarter of 2022 was
$4 million, compared to net interest
expense of $15 million in the second
quarter of 2022 and net interest expense of $11 million in the third quarter of 2021. The
increase in net interest income was mainly driven by a one-time
interest benefit of $17 million
deriving from the interest income generated by the anti-dumping and
countervailing duty deposit refunds.
Net foreign exchange and derivative gain in the third quarter of
2022 was $39 million, compared to a
net gain of $6 million in
the second quarter of 2022 and a net loss of $14 million in the third quarter of 2021. The net
foreign exchange gain was mainly driven by the strengthening of the
U.S. Dollar against the Renminbi.
Net income attributable to Canadian Solar in the third quarter
of 2022 was $78 million, or
$1.12 per diluted share ("diluted
EPS"), compared to net income of $74
million, or $1.07 per diluted
share, in the second quarter of 2022, and net income of
$35 million, or $0.52 per diluted share, in the third quarter of
2021.
For the three months ended September 30,
2022, diluted EPS of $1.12 was
calculated to include the dilution effect of the outstanding
convertible notes. Diluted EPS of $1.12 was calculated from total earnings of
$80 million, adding back the 2.5%
coupon of $1.3 million, divided by
71.4 million diluted shares, including 6.3 million shares issuable
upon the conversion of the convertible notes. For the three months
ended June 30, 2022, diluted EPS of
$1.07 was calculated from total
earnings of $76 million, adjusted for
the effects of the convertible notes. For the three months ended
September 30, 2021, diluted EPS of
$0.52 was calculated from total
earnings of $37 million, adjusted for
the effects of the convertible notes.
Net cash flow provided by operating activities in the third
quarter of 2022 was $68 million,
compared to $293 million in the
second quarter of 2022. The decrease in operating cash inflow was
mainly driven by changes in working capital.
Total debt was $2.7 billion as of
September 30 and June 30, 2022. Non-recourse debt used to finance
solar power projects increased to $311 million as of
September 30, 2022, from
$264 million as of June 30,
2022.
Corporate Structure
The Company has two business segments: Global Energy and CSI
Solar, which operate as follows:
The Global Energy segment carries out the Company's
global project development activities for both solar and battery
storage project development, which include sourcing land,
interconnection agreements, structuring power purchase agreements
(PPAs) and other permits and requirements. 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 system 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.
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 7.3 GWp of
solar power plants across six continents. The Company has built a
leadership position in solar project development with 25 GWp total
pipeline, as well as in energy storage project development with 40
GWh of aggregate pipeline.
The continued pipeline expansion and strong project development
track record will support Global Energy's growth in three key
areas:
1. Project sales: The
Company plans to grow its volume of project sales by a compound
annual growth rate of approximately 50% to 2026, while holding and
accumulating assets through investment vehicles (see below) in
order to better capture asset value.
2. Investment vehicles: The
Company is optimizing its project monetization strategy by
establishing local investment vehicles that will help maximize the
value of its project assets. The Company also intends to retain
minority ownership in these vehicles. By 2026, the Company plans to
reach 1.3 GW of combined net ownership in solar power projects
through these vehicles. This approach will help the Company build
and grow a stable base of long-term cash flows from contracted
electricity. The Company plans to recycle a large portion of the
capital into developing new solar projects for growth. Meanwhile,
the Company expects to capture additional operational value
throughout the partial ownership period, including long-term cash
flows from power sales, O&M, asset management and other
services (see point 3). The Company currently owns a 15% stake in
the Canadian Solar Infrastructure Fund ("CSIF", TSE: 9284), the
largest Japanese infrastructure fund listed on the Tokyo Stock
Exchange, and has also established the CSFS Fund I, a closed-ended
alternative investment fund of a similar nature in Italy. Through launching these localized
vehicles, Canadian Solar is building its expertise in designing
investment vehicles in local markets that will help maximize the
value of its project assets.
3. Services: The Company
currently manages over 3.6 GW of operational projects under
long-term O&M agreements, and an additional 2.2 GW of
contracted projects that will be operated and maintained by the
Company once they are placed in operation. The Company's target is
to reach 20 GW of projects under O&M agreements by 2026.
Management targets to achieve the following over the next few
years:
Global Energy
Targets
|
2021A
|
2022E
|
2023E
|
2024E
|
2025E
|
2026E
|
Annual Project Sales,
GWp
|
2.1
|
2.2-2.3
|
2.8-3.3
|
3.5-4.0
|
4.0-4.5
|
4.3-4.8
|
Operational O&M
Projects, GWp
|
2.1
|
4.2
|
7.5
|
11
|
15
|
20
|
Net Cumulative Projects
Retained, MWp*
|
292
|
360
|
630
|
1,000
|
1,100
|
1,300
|
Gross Cumulative
Projects Retained, MWp*
|
748
|
1,400
|
2,580
|
3,500
|
4,000
|
5,000
|
*Net projects retained represents CSIQ's net partial
ownership of solar projects; the gross number represents the
aggregate gross size of projects, including the share which is not
owned by CSIQ.
Project Pipeline – Solar
As of September 30, 2022, the
Company's total project pipeline was 25.0 GWp, including 1.0 GWp
under construction, 5.2 GWp of backlog, and 18.8 GWp of projects in
advanced and early-stage pipelines. We have updated our project
pipeline classification as follows:
- Backlog projects
are late-stage projects that have passed their Risk Cliff Date and
are expected to start construction in the next 1-4 years. A
project's Risk Cliff Date is the date on which the project passes
the last high-risk development stage and varies depending on the
country where it is located. This is usually after the projects
have received all the required environmental and regulatory
approvals, and entered into interconnection agreements, feed-in
tariff ("FIT") arrangements and 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.
- Advanced pipeline projects are mid-stage projects that
have secured or have more than 90% certainty of securing an
interconnection agreement.
- Early-stage pipeline
projects are early-stage projects controlled by Canadian Solar
that are in the process of securing interconnection.
- The following table presents Global Energy's total solar
project development pipeline.
|
Total Project
Pipeline (as of September 30, 2022) – MWp*
|
Region
|
In
Construction
|
Backlog
|
Advanced
Pipeline
|
Early-Stage
Pipeline
|
Total
|
North
America
|
-
|
603
|
2,125
|
3,818
|
6,546
|
Latin
America
|
730**
|
3,211**
|
2,072
|
608
|
6,621
|
Europe, the Middle East
and Africa
("EMEA")
|
21
|
379
|
4,067
|
1,880
|
6,347
|
Japan
|
46
|
156
|
-
|
105
|
307
|
Asia Pacific excluding
Japan and China
|
-
|
3
|
135
|
1,842
|
1,980
|
China
|
250
|
800**
|
-
|
2,150
|
3,200
|
Total
|
1,047
|
5,152
|
8,399
|
10,403
|
25,001
|
*All numbers are
gross MWp.
**Including 189 MWp
in construction and 670 MWp in backlog that are owned by or already
sold to third parties.
|
|
|
|
|
|
|
|
Project Pipeline – Battery Storage
In addition to developing utility-scale solar power projects,
the Global Energy segment has also been developing hybrid solar
plus energy storage projects, as well as stand-alone battery
storage projects. The Company co-hosts energy storage facilities
with solar power plants on the same piece of land for nearly all
projects under development. By using a single interconnection point
per project, the Company expects to significantly enhance the
efficiency of its development and the value of its assets under
development.
Canadian Solar's storage development business model also
includes signing storage tolling agreements with a variety of power
purchasers, including community choice aggregators, investor-owned
utilities, universities, and public utility districts. In addition,
the Company has 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 total battery storage project development
pipeline.
Storage Project Development Backlog
and Pipeline (as of September 30, 2022) –
MWh
|
Region
|
In
Construction
|
Backlog
|
Advanced
Pipeline
|
Early-Stage
Pipeline
|
Total
|
North
America
|
1,400*
|
-
|
4,776
|
8,600
|
14,776
|
Latin
America
|
-
|
2,300
|
1,806
|
970
|
5,076
|
EMEA
|
-
|
82
|
2,608
|
6,000
|
8,690
|
Japan
|
-
|
-
|
-
|
19
|
19
|
Asia Pacific, excluding
Japan and China
|
20
|
462
|
-
|
2,320
|
2,802
|
China
|
-
|
300
|
-
|
8,700
|
9,000
|
Total
|
1,420
|
3,144
|
9,190
|
26,609
|
40,363
|
* Including 1,120 MWh that have
already been sold to a third party.
|
Projects in Operation - Solar and Battery Storage Power
Plants
As of September 30, 2022, the
Company's solar power plants in operation totaled 508 MWp, with a
combined estimated net resale value of
approximately $575 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
|
277
|
134
|
15
|
82
|
508
|
|
*All numbers are net
MWp owned by Canadian Solar; total gross MWp of projects is 903
MWp, including volume that is already sold to third
parties.
|
Operating Results
The following table presents select unaudited 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
|
|
Nine Months
Ended
|
|
|
September 30,
2022
|
June 30,
2022
|
September 30,
2021
|
|
September 30,
2022
|
September 30,
2021
|
|
Net revenues
|
100,925
|
553,984
|
139,989
|
|
747,875
|
891,665
|
|
Cost of
revenues
|
53,366
|
473,979
|
78,848
|
|
602,475
|
705,740
|
|
Gross profit
|
47,559
|
80,005
|
61,141
|
|
145,400
|
185,925
|
|
Operating
expenses
|
20,512
|
24,326
|
30,442
|
|
63,685
|
74,018
|
|
Income from
operations*
|
27,047
|
55,679
|
30,699
|
|
81,715
|
111,907
|
|
Gross
margin
|
47.1 %
|
14.4 %
|
43.7 %
|
|
19.4 %
|
20.9 %
|
|
Operating
margin
|
26.8 %
|
10.1 %
|
21.9 %
|
|
10.9 %
|
12.6 %
|
|
* Income from
operations reflects management's allocation and estimate as some
services are shared by the Company's
two business segments.
|
|
CSI Solar Segment
Solar Modules
CSI Solar shipped 6.0 GW of solar modules to more than 70
countries in the third quarter of 2022. The top five markets
ranked by shipments were China,
the U.S., Brazil, Spain and Germany.
CSI Solar's 2022 and 2023 solar capacity expansion targets are
set forth below.
Solar Manufacturing
Capacity, GW*
|
|
Sep.
2022
Actual
|
Dec. 2022
Plan
|
Jun.
2023
Plan
|
Dec.
2023
Plan
|
Ingot
|
14.4
|
20.4
|
20.4
|
25.0
|
Wafer
|
15.3
|
20.0
|
20.0
|
25.0
|
Cell
|
17.3
|
19.8
|
26.6
|
35.0
|
Module
|
31.3
|
32.2
|
36.7
|
50.0
|
|
*Nameplate annualized
capacities at said point in time. Capacity expansion plans are
subject to change without notice based on market conditions and
capital allocation plans.
|
Battery Storage Solutions
Within CSI Solar, the battery storage solutions team, namely CSI
Energy Storage, provides customers with competitive turnkey,
integrated, utility-scale battery storage solutions, including
bankable and fully wrapped capacity and performance guarantees.
These guarantees are complemented with long-term service
agreements, which include future battery capacity augmentation
services and bring in long-term, stable income.
The table below sets forth CSI Energy Storage's project pipeline
as of September 30, 2022, including
projects contracted under long term service agreement.
|
LTSA
(Long
Term
Service
Agreement)
|
Contracted/
In
Construction
|
Forecast
|
Pipeline
|
Total
|
Storage
(MWh)
|
861
|
2,372
|
4,304
|
17,345
|
24,882
|
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 received exclusivity
agreements or have been shortlisted, but still have a below 75%
probability of being contracted.
In September 2022, CSI Solar
launched the SolBank, an exciting new, self-manufactured battery
storage product. The SolBank is a lithium iron phosphate (LiFePO4)
chemistry-based battery enclosure with up to 2.8 MWh of usable
energy capacity, specifically engineered for utility-scale
applications. The SolBank is designed with liquid cooling and
humidity control, active balancing BMS (Battery Management System)
technologies, and complies with the latest international safety and
compliance standards. CSI Energy Storage produces the SolBank on
fully automated, state-of-the-art production and testing
facilities.
The table below sets forth CSI Energy Storage's battery storage
manufacturing capacity expansion targets.
Battery Storage
Manufacturing
Capacity, GWh*
|
Sep.
2022
Actual
|
Dec.
2022
Plan
|
Dec.
2023
Plan
|
SolBank
|
2.5
|
2.5
|
10.0
|
*Nameplate annualized
capacities at said point in time. Capacity expansion plans are
subject to change without notice based on market conditions and
capital allocation plans.
|
Operating Results
The following table presents select unaudited results of
operations data of the CSI Solar segment for the periods
indicated.
CSI Solar Segment
Financial Results*
(In Thousands of
U.S. Dollars, Except Percentages)
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September 30,
2022
|
June 30,
2022
|
September 30,
2021
|
|
September 30,
2022
|
September 30,
2021
|
Net revenues
|
1,973,163
|
1,816,410
|
1,149,215
|
|
4,999,567
|
3,028,325
|
Cost of
revenues
|
1,632,518
|
1,526,755
|
976,212
|
|
4,193,438
|
2,632,376
|
Gross profit
|
340,645
|
289,655
|
173,003
|
|
806,129
|
395,949
|
Operating
expenses
|
243,667
|
227,262
|
142,734
|
|
614,860
|
403,376
|
Income (loss) from
operations
|
96,978
|
62,393
|
30,269
|
|
191,269
|
(7,427)
|
Gross
margin
|
17.3 %
|
15.9 %
|
15.1 %
|
|
16.1 %
|
13.1 %
|
Operating
margin
|
4.9 %
|
3.4 %
|
2.6 %
|
|
3.8 %
|
-0.2 %
|
|
*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 (loss) from operations reflects
management's allocation and estimate as some services are shared by
the Company's two business segments.
|
The table below provides the geographic distribution of the net
revenues of CSI Solar:
CSI Solar Net
Revenues Geographic Distribution* (In Millions of U.S. Dollars,
Except Percentages)
|
|
Q3
2022
|
% of Net
Revenues
|
|
Q2
2022
|
% of Net
Revenues
|
|
Q3
2021
|
% of Net
Revenues
|
Asia
|
669
|
37
|
|
587
|
33
|
|
481
|
44
|
Americas
|
650
|
35
|
|
742
|
42
|
|
393
|
36
|
Europe and
others
|
512
|
28
|
|
431
|
25
|
|
215
|
20
|
Total
|
1,831
|
100
|
|
1,760
|
100
|
|
1,089
|
100
|
|
*Excludes internal
sales from CSI Solar to Global Energy.
|
Business Outlook
The Company's business outlook is based on management's current
views and estimates given factors such as existing market
conditions, order book, production capacity, input material prices,
foreign exchange fluctuations, 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
shutdowns, supply chain constraints, and geopolitical conflicts.
Management's views and estimates are subject to change without
notice.
For the fourth quarter of 2022, the Company expects total
revenues to be in the range of $1.8 billion to $1.9 billion. Gross margin is expected to be
between 16% to 18%. Total module shipments recognized as revenues
by CSI Solar are expected to be in the range of 6.0 GW to 6.3 GW,
including approximately 290 MW to the Company's own projects.
For the full year of 2022, the Company expects CSI Solar's total
battery storage shipments to be in the range of 1.8 GWh to 1.9 GWh,
including approximately 300 MWh to the Company's own projects.
Global Energy project sales are expected to be in the range of 2.2
GW to 2.3 GW.
For the full year of 2023, the Company expects total module
shipments to be in the range of 30 GW to 35 GW.
Dr. Shawn Qu, Chairman and
CEO, commented, "We continue to focus on profitable growth,
investing in our industry leading product roadmap, and further
expansion of our global solar and battery storage businesses, as we
build long-term value for shareholders. Global demand remains very
strong and previous supply chain and cost headwinds are improving
with lower input and logistics costs. We still face near-term
challenges with volatility in foreign exchange rates, which we are
closely monitoring and will continue to take appropriate actions to
mitigate the impact."
Recent Developments
On November 3, 2022, Canadian
Solar announced that its majority-owned subsidiary CSI Solar
received France's Simplified
Carbon Assessment (Evaluation carbone simplifiée or ECS)
certification and Italy's
Environmental Product Declaration (EPD) certification for its
high-efficiency mono-facial and bifacial modules, using 182mm and
210mm silicon wafers. Canadian Solar's modules have some of
the lowest carbon footprints among crystalline solar modules in the
market and will play a critical role in supporting customers'
decarbonization goals.
On October 18, 2022, Canadian
Solar announced that Crimson Storage, a 350 MW / 1,400 MWh
standalone energy storage project, reached commercial operation and
will be providing flexible capacity to the California grid. A fund managed by Axium
Infrastructure US Inc. owns 80% of the project and Recurrent
Energy, the project developer, retains 20% ownership. CSI
Energy Storage was the turnkey system integrator of the
project, delivering the EPC services and will provide long-term
operational services for the project.
On September 13, 2022, Canadian
Solar announced the launch of the EP Cube, a lightweight and
sleek all-in-one residential energy storage solution by its
majority-owned subsidiary CSI Solar. The EP Cube solution can be
stacked for 9.9 kWh to 19.9 kWh capacities. Up to six units can be
connected in parallel to deliver up to 119.9 kWh of storage and
45.6 kW output, which is more than enough to fully power the
average home with high-surge-current appliances and AC units.
On September 1, 2022, Canadian
Solar announced that it was awarded a 253 MWp solar plus 1,000 MWh
battery energy storage project in Chile's public tender CNE 2022/01 held by
Chile's Energy National Commission
(CNE) in July 2022. The project is
expected to start construction in 2024 and reach commercial
operation in 2026. Once in operation, part of the electricity
generated by solar will be purchased by a pool of distribution
companies under 15-year U.S. dollar-dominated power
purchase agreements (PPAs), and the remaining will be purchased by
private energy off-takers.
Conference Call Information The Company will hold a
conference call on Tuesday, November 22,
2022, at 8:00 a.m. U.S.
Eastern Standard Time (9:00 p.m.,
Tuesday, November 22, 2022, in
Hong Kong) to discuss its third
quarter 2022 results and business outlook. The dial-in phone number
for the live audio call is +1-877-704-4453 (toll-free from the
U.S.), 800-965-561 (toll-free from Hong
Kong), 400-1202-840 (local dial-in from Mainland China) or
+1-201-389-0920 from international locations. The conference ID is
13733777. 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 11:00
p.m. U.S. Eastern Standard Time on Tuesday, December 6, 2022 (12:00 noon,
December 7, 2022, in Hong Kong) and can be accessed by
+1-844-512-2921 (toll-free from the U.S.), or
+1-412-317-6671 from international locations. The replay pin
number is 13733777. A webcast replay will also be available on the
investor relations section of Canadian Solar's website at
www.canadiansolar.com.
About Canadian Solar Inc.
Canadian Solar was founded in 2001 in Canada and is one of the world's largest solar
technology and renewable energy companies. It is a leading
manufacturer of solar photovoltaic modules, provider of solar
energy and battery storage solutions, and developer of
utility-scale solar power and battery storage projects with a
geographically diversified pipeline in various stages of
development. Over the past 21 years, Canadian Solar has
successfully delivered around 82 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 7 GWp in over 20 countries
across the world. Currently, the Company has approximately 500 MWp
of projects in operation, 6 GWp of projects under construction or
in backlog (late-stage), and an additional 19 GWp of projects
in advanced and early-stage pipeline. Canadian Solar is one of the
most bankable companies in the solar and renewable energy industry,
having been publicly listed on the NASDAQ since 2006. For
additional information about the Company, follow Canadian Solar
on LinkedIn or visit www.canadiansolar.com.
Safe Harbor/Forward-Looking Statements
Certain statements in this press release, including those
regarding the Company's expected future shipment volumes, revenues,
gross margins and project sales are forward-looking statements that
involve a number of risks and uncertainties that could cause actual
results to differ materially. These statements are made under the
"Safe Harbor" provisions of the U.S. Private Securities Litigation
Reform Act of 1995. In some cases, you can identify forward-looking
statements by such terms as "believes," "expects," "anticipates,"
"intends," "estimates," the negative of these terms, or other
comparable terminology. Factors that could cause actual results to
differ include general business, regulatory and economic conditions
and the state of the solar and battery storage market and industry;
geopolitical tensions and conflicts, including impasses, sanctions
and export controls; volatility, uncertainty, delays and
disruptions related to the COVID-19 pandemic; supply chain
disruptions; governmental support for the deployment of solar
power; future available supplies of high-purity silicon; demand for
end-use products by consumers and inventory levels of such products
in the supply chain; changes in demand from significant customers;
changes in demand from major markets such as Japan, the U.S., China, Brazil
and Europe; changes in effective
tax rates; changes in customer order patterns; changes in product
mix; changes in corporate responsibility, especially environmental,
social and governance ("ESG") requirements; capacity utilization;
level of competition; pricing pressure and declines in or failure
to timely adjust average selling prices; delays in new product
introduction; delays in utility-scale project approval process;
delays in utility-scale project construction; delays in the
completion of project sales; continued success in technological
innovations and delivery of products with the features that
customers demand; shortage in supply of materials or capacity
requirements; availability of financing; exchange and inflation
rate fluctuations; uncertainties related to the CSI Solar carve-out
listing; litigation and other risks as described in the Company's
filings with the Securities and Exchange Commission, including its
annual report on Form 20-F filed on April
28, 2022, as amended on October 18,
2022. Although the Company believes that the expectations
reflected in the forward-looking statements are reasonable, it
cannot guarantee future results, level of activity, performance, or
achievements. Investors should not place undue reliance on these
forward-looking statements. All information provided in this press
release is as of today's date, unless otherwise stated, and
Canadian Solar undertakes no duty to update such information,
except as required under applicable law.
Investor Relations Contacts:
Isabel Zhang
Investor
Relations
Canadian Solar
Inc.
investor@canadiansolar.com
|
David
Pasquale
Global IR
Partners
Tel:
+1-914-337-8801
csiq@globalirpartners.com
|
FINANCIAL TABLES FOLLOW
The following tables provide unaudited select financial data
for the Company's CSI Solar and Global Energy businesses.
|
|
|
Select Financial
Data – CSI Solar and Global Energy
|
|
|
|
Three Months Ended
September 30, 2022
(In Thousands of U.S. Dollars, Except Percentages)
|
|
|
|
CSI
Solar
|
|
Global
Energy
|
|
Elimination
and
unallocated
items (1)
|
|
Total
|
Net
revenues
|
|
|
1,973,163
|
|
100,925
|
|
(141,609)
|
|
1,932,479
|
Cost of
revenues
|
|
|
1,632,518
|
|
53,366
|
|
(115,971)
|
|
1,569,913
|
Gross profit
|
|
|
340,645
|
|
47,559
|
|
(25,638)
|
|
362,566
|
Gross margin
|
|
|
17.3 %
|
|
47.1 %
|
|
—
|
|
18.8 %
|
Income from
operations (2)
|
|
|
96,978
|
|
27,047
|
|
(35,358)
|
|
88,667
|
|
|
|
Select Financial
Data – CSI Solar and Global Energy
|
|
|
|
Nine Months Ended
September 30, 2022
(In Thousands of U.S. Dollars, Except Percentages)
|
|
|
|
CSI
Solar
|
|
Global
Energy
|
|
Elimination
and
unallocated
items (1)
|
|
Total
|
Net
revenues
|
|
|
4,999,567
|
|
747,875
|
|
(250,428)
|
|
5,497,014
|
Cost of
revenues
|
|
|
4,193,438
|
|
602,475
|
|
(213,406)
|
|
4,582,507
|
Gross profit
|
|
|
806,129
|
|
145,400
|
|
(37,022)
|
|
914,507
|
Gross margin
|
|
|
16.1 %
|
|
19.4 %
|
|
—
|
|
16.6 %
|
Income from
operations (2)
|
|
|
191,269
|
|
81,715
|
|
(52,685)
|
|
220,299
|
|
|
|
Select Financial
Data – CSI Solar and Global Energy
|
|
|
|
Three Months Ended
September 30, 2021
(In Thousands of U.S. Dollars, Except Percentages)
|
|
|
|
CSI
Solar
|
|
Global
Energy
|
|
Elimination
and
unallocated
items (1)
|
|
Total
|
Net
revenues
|
|
|
1,149,215
|
|
139,989
|
|
(59,754)
|
|
1,229,450
|
Cost of
revenues
|
|
|
976,212
|
|
78,848
|
|
(54,239)
|
|
1,000,821
|
Gross profit
|
|
|
173,003
|
|
61,141
|
|
(5,515)
|
|
228,629
|
Gross margin
|
|
|
15.1 %
|
|
43.7 %
|
|
—
|
|
18.6 %
|
Income from
operations (2)
|
|
|
30,269
|
|
30,699
|
|
(7,875)
|
|
53,093
|
|
|
|
Select Financial
Data – CSI Solar and Global Energy
|
|
|
|
Nine Months Ended
September 30, 2021
(In Thousands of
U.S. Dollars, Except Percentages)
|
|
|
|
CSI
Solar
|
|
Global
Energy
|
|
Elimination
and
unallocated
items (1)
|
|
Total
|
Net
revenues
|
|
|
3,028,325
|
|
891,665
|
|
(171,540)
|
|
3,748,450
|
Cost of
revenues
|
|
|
2,632,376
|
|
705,740
|
|
(197,684)
|
|
3,140,432
|
Gross profit
|
|
|
395,949
|
|
185,925
|
|
26,144
|
|
608,018
|
Gross margin
|
|
|
13.1 %
|
|
20.9 %
|
|
—
|
|
16.2 %
|
Income (loss) from
operations (2)
|
|
|
(7,427)
|
|
111,907
|
|
18,476
|
|
122,956
|
(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
September 30,
2022
|
|
Three Months
Ended
June 30,
2022
|
|
Three Months
Ended
September 30,
2021
|
|
(In Thousands of
U.S. Dollars)
|
CSI Solar
Revenues:
|
|
|
|
|
|
Solar
modules
|
1,578,695
|
|
1,350,495
|
|
872,288
|
Solar system
kits
|
139,091
|
|
150,765
|
|
98,920
|
Battery storage
solutions
|
81,100
|
|
227,438
|
|
62,977
|
China energy/EPC
(incl. electricity
sales)
|
4,058
|
|
5,397
|
|
22,337
|
Others
|
28,610
|
|
26,107
|
|
32,939
|
Subtotal
|
1,831,554
|
|
1,760,202
|
|
1,089,461
|
Global Energy
Revenues:
|
|
|
|
|
|
Solar and battery
storage power
projects
|
84,725
|
|
540,056
|
|
126,224
|
O&M
and asset management
services
|
9,996
|
|
7,745
|
|
8,031
|
Others (incl.
electricity sales)
|
6,204
|
|
6,183
|
|
5,734
|
Subtotal
|
100,925
|
|
553,984
|
|
139,989
|
Total net
revenues
|
1,932,479
|
|
2,314,186
|
|
1,229,450
|
|
Select Financial
Data - CSI Solar and Global Energy
|
|
Nine Months
Ended
September 30,
2022
|
|
Nine Months
Ended
September 30,
2021
|
|
(In Thousands of
U.S. Dollars)
|
CSI Solar
Revenues:
|
|
|
|
Solar
modules
|
3,892,235
|
|
2,267,998
|
Solar system
kits
|
380,312
|
|
223,048
|
Battery storage
solutions
|
391,038
|
|
134,225
|
China energy/EPC
(incl. electricity sales)
|
14,778
|
|
123,779
|
Others
|
70,776
|
|
107,735
|
Subtotal
|
4,749,139
|
|
2,856,785
|
Global Energy
Revenues:
|
|
|
|
Solar and battery
storage power projects
|
703,173
|
|
845,669
|
O&M
and asset management services
|
25,689
|
|
26,604
|
Others (incl.
electricity sales)
|
19,013
|
|
19,392
|
Subtotal
|
747,875
|
|
891,665
|
Total net
revenues
|
5,497,014
|
|
3,748,450
|
|
Canadian Solar
Inc.
|
|
Unaudited Condensed
Consolidated Statements of Operations
|
|
(In Thousands of
U.S. Dollars, Except Share and Per Share Data)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
|
2022
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
Net revenues
|
$ 1,932,479
|
|
$ 2,314,186
|
|
$ 1,229,450
|
|
$ 5,497,014
|
|
$ 3,748,450
|
Cost of
revenues
|
1,569,913
|
|
1,943,136
|
|
1,000,821
|
|
4,582,507
|
|
3,140,432
|
|
Gross
profit
|
362,566
|
|
371,050
|
|
228,629
|
|
914,507
|
|
608,018
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
Selling and
distribution
expenses
|
165,751
|
|
158,017
|
|
101,526
|
|
432,613
|
|
269,187
|
|
General and
administrative expenses
|
102,192
|
|
87,920
|
|
83,244
|
|
252,922
|
|
219,279
|
|
Research and
development expenses
|
17,885
|
|
18,050
|
|
13,493
|
|
49,215
|
|
39,101
|
|
Other operating
income,
net
|
(11,929)
|
|
(9,054)
|
|
(22,727)
|
|
(40,542)
|
|
(42,505)
|
Total operating
expenses
|
273,899
|
|
254,933
|
|
175,536
|
|
694,208
|
|
485,062
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations
|
88,667
|
|
116,117
|
|
53,093
|
|
220,299
|
|
122,956
|
Other income
(expenses):
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
(19,060)
|
|
(19,709)
|
|
(13,153)
|
|
(54,071)
|
|
(42,621)
|
|
Interest
income
|
22,900
|
|
4,216
|
|
2,253
|
|
31,328
|
|
8,338
|
|
Gain (loss) on change
in
fair value of derivatives,
net
|
12,189
|
|
(4,869)
|
|
9,878
|
|
(17,418)
|
|
10,300
|
|
Foreign exchange
gain
(loss), net
|
26,884
|
|
11,333
|
|
(23,533)
|
|
66,079
|
|
(34,297)
|
|
Investment income
(loss)
|
(3,230)
|
|
6,984
|
|
2,890
|
|
(1,770)
|
|
9,307
|
Other income
(expenses),
net
|
39,683
|
|
(2,045)
|
|
(21,665)
|
|
24,148
|
|
(48,973)
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
and equity in earnings of
unconsolidated investees
|
128,350
|
|
114,072
|
|
31,428
|
|
244,447
|
|
73,983
|
Income tax benefit
(expense)
|
(28,955)
|
|
(27,731)
|
|
2,879
|
|
(51,503)
|
|
(9,328)
|
Equity in earnings
of
unconsolidated investees
|
2,847
|
|
2,214
|
|
3,821
|
|
6,787
|
|
5,609
|
Net
income
|
102,242
|
|
88,555
|
|
38,128
|
|
199,731
|
|
70,264
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to non-
controlling interests
|
23,777
|
|
14,093
|
|
2,884
|
|
37,597
|
|
980
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to
Canadian Solar Inc.
|
$
78,465
|
|
$
74,462
|
|
$
35,244
|
|
$
162,134
|
|
$
69,284
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
$
1.22
|
|
$
1.16
|
|
$
0.56
|
|
$
2.52
|
|
$
1.14
|
Shares used in
computation -
basic
|
64,494,260
|
|
64,262,556
|
|
62,794,480
|
|
64,263,616
|
|
60,989,038
|
Earnings per share -
diluted
|
$
1.12
|
|
$
1.07
|
|
$
0.52
|
|
$
2.33
|
|
$
1.07
|
Shares used in
computation -
diluted
|
71,402,769
|
|
71,103,568
|
|
69,857,925
|
|
71,137,128
|
|
68,333,493
|
|
Canadian Solar
Inc.
|
|
Unaudited Condensed
Consolidated Statement of Comprehensive Income
(Loss)
|
|
(In Thousands of
U.S. Dollars)
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
September
30,
|
|
September
30,
|
|
2022
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net
Income
|
$
102,242
|
|
$
88,555
|
|
$
38,128
|
|
$
199,731
|
|
$
70,264
|
Other comprehensive
income
(loss) (net of tax of nil):
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation
adjustment
|
(104,581)
|
|
(126,367)
|
|
(26,236)
|
|
(223,437)
|
|
(48,309)
|
Gain on changes in fair
value of
available-for-sale debt securities
|
369
|
|
229
|
|
—
|
|
598
|
|
—
|
Gain on changes in fair
value of
derivatives
|
332
|
|
160
|
|
—
|
|
682
|
|
—
|
Share of gain on
changes in fair
value of derivatives of
unconsolidated investee
|
2,255
|
|
—
|
|
—
|
|
2,255
|
|
—
|
Comprehensive income
(loss)
|
617
|
|
(37,423)
|
|
11,892
|
|
(20,171)
|
|
21,955
|
Less: comprehensive
income
(loss) attributable to non-
controlling interests
|
6,547
|
|
(3,960)
|
|
(1,053)
|
|
3,714
|
|
(7,985)
|
Comprehensive income
(loss)
attributable to Canadian Solar
Inc.
|
$ (5,930)
|
|
$ (33,463)
|
|
$
12,945
|
|
$ (23,885)
|
|
$
29,940
|
|
|
|
|
|
|
|
|
|
|
|
Canadian Solar
Inc.
|
|
Unaudited Condensed
Consolidated Balance Sheets
|
|
(In Thousands of
U.S. Dollars)
|
|
|
|
September
30,
|
|
December 31,
|
|
|
|
2022
|
|
2021
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
$ 1,082,567
|
|
$ 869,831
|
|
|
Restricted
cash
|
865,174
|
|
560,633
|
|
|
Accounts receivable
trade, net
|
955,762
|
|
651,372
|
|
|
Accounts receivable,
unbilled
|
5,675
|
|
37,244
|
|
|
Amounts due from
related parties
|
109,679
|
|
73,042
|
|
|
Inventories
|
1,603,627
|
|
1,192,374
|
|
|
Value added tax
recoverable
|
122,060
|
|
125,882
|
|
|
Advances to
suppliers
|
358,906
|
|
225,879
|
|
|
Derivative
assets
|
19,407
|
|
7,286
|
|
|
Project
assets
|
332,333
|
|
594,107
|
|
|
Prepaid expenses and
other current assets
|
297,630
|
|
434,177
|
|
Total current
assets
|
5,752,820
|
|
4,771,827
|
|
Restricted
cash
|
6,824
|
|
3,818
|
|
Property, plant and
equipment, net
|
1,517,118
|
|
1,401,877
|
|
Solar power systems,
net
|
100,652
|
|
108,263
|
|
Deferred tax assets,
net
|
232,299
|
|
236,503
|
|
Advances to
suppliers
|
34,278
|
|
34,239
|
|
Prepaid land use
rights
|
64,816
|
|
71,011
|
|
Investments in
affiliates
|
107,368
|
|
98,819
|
|
Intangible assets,
net
|
14,843
|
|
18,992
|
|
Project
assets
|
578,571
|
|
433,254
|
|
Right-of-use
assets
|
28,143
|
|
35,286
|
|
Amounts due from
related parties
|
32,293
|
|
—
|
|
Other non-current
assets
|
191,441
|
|
174,453
|
|
TOTAL
ASSETS
|
$
8,661,466
|
|
$
7,388,342
|
|
|
|
|
|
|
|
|
|
Canadian Solar
Inc.
|
|
Unaudited Condensed
Consolidated Balance Sheets (Continued)
|
|
(In Thousands of
U.S. Dollars)
|
|
|
September
30,
|
|
December 31,
|
|
|
2022
|
|
2021
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term
borrowings
|
$ 1,228,509
|
|
$ 1,271,215
|
|
|
Long-term borrowings on
project assets -
current
|
198,785
|
|
321,655
|
|
|
Accounts
payable
|
914,631
|
|
502,995
|
|
|
Short-term notes
payable
|
1,357,490
|
|
881,184
|
|
|
Amounts due to related
parties
|
375
|
|
143
|
|
|
Other
payables
|
765,412
|
|
667,854
|
|
|
Advances from
customers
|
245,507
|
|
135,512
|
|
|
Derivative
liabilities
|
9,692
|
|
2,622
|
|
|
Operating lease
liabilities
|
8,904
|
|
12,185
|
|
|
Other current
liabilities
|
200,596
|
|
242,783
|
|
Total current
liabilities
|
4,929,901
|
|
4,038,148
|
|
Accrued warranty
costs
|
64,175
|
|
45,146
|
|
Long-term
borrowings
|
941,844
|
|
523,634
|
|
Convertible
notes
|
225,623
|
|
224,675
|
|
Liability for uncertain
tax positions
|
7,939
|
|
7,448
|
|
Deferred tax
liabilities
|
44,059
|
|
48,150
|
|
Loss contingency
accruals
|
3,026
|
|
15,148
|
|
Operating lease
liabilities
|
19,364
|
|
23,215
|
|
Financing
liabilities
|
5,634
|
|
53,641
|
|
Other non-current
liabilities
|
303,386
|
|
282,699
|
|
TOTAL
LIABILITIES
|
6,544,951
|
|
5,261,904
|
|
Equity:
|
|
|
|
|
|
Common
shares
|
835,543
|
|
835,543
|
|
|
Additional paid-in
capital
|
(11,709)
|
|
(19,428)
|
|
|
Retained
earnings
|
1,197,686
|
|
1,035,552
|
|
|
Accumulated other
comprehensive loss
|
(236,603)
|
|
(50,584)
|
|
Total Canadian Solar
Inc. shareholders'
equity
|
1,784,917
|
|
1,801,083
|
|
Non-controlling
interests in subsidiaries
|
331,598
|
|
325,355
|
|
TOTAL
EQUITY
|
2,116,515
|
|
2,126,438
|
|
TOTAL LIABILITIES
AND EQUITY
|
$
8,661,466
|
|
$
7,388,342
|
|
View original
content:https://www.prnewswire.com/news-releases/canadian-solar-reports-third-quarter-2022-results-301684993.html
SOURCE Canadian Solar Inc.