{"id":801,"date":"2021-08-30T17:00:57","date_gmt":"2021-08-30T08:00:57","guid":{"rendered":"https:\/\/canadiansolar-energy.co.jp\/en\/news_release\/?p=801"},"modified":"2021-08-28T21:32:05","modified_gmt":"2021-08-28T12:32:05","slug":"canadian-solar-reports-second-quarter-2021-results","status":"publish","type":"post","link":"https:\/\/canadiansolar-energy.co.jp\/en\/news_release\/2021\/801.html","title":{"rendered":"CANADIAN SOLAR REPORTS SECOND QUARTER 2021 RESULTS"},"content":{"rendered":"<p>GUELPH, ON,\u00a0Aug. 12, 2021\u00a0\/PRNewswire\/ &#8212;\u00a0<span style=\"color: #993300;\"><a style=\"color: #993300;\" href=\"http:\/\/www.canadiansolar.com\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Canadian Solar Inc.<\/a><\/span>\u00a0(&#8220;Canadian Solar&#8221; or the &#8220;Company&#8221;) (NASDAQ: CSIQ) today announced financial results for the quarter ended\u00a0June 30, 2021.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Highlights<\/strong><\/p>\n<ul type=\"disc\">\n<li>Solar module shipments of 3.7 GW in the second quarter of 2021, top end of 3.5 GW to 3.7 GW guidance.<\/li>\n<li>Revenue increased 105% year-over-year (&#8220;yoy&#8221;) to a record\u00a0$1.43 billion, in line with guidance of\u00a0$1.4 billion\u00a0to\u00a0$1.5 billion.<\/li>\n<li>Gross margin of 12.9%, ahead of guidance range of 9.5% to 10.5%.<\/li>\n<li>Net income attributable to\u00a0Canadian Solar\u00a0of\u00a0$11 million, or\u00a0$0.18\u00a0per diluted share.<\/li>\n<li>1.5 GWh of battery storage projects under construction and 19 GWh of total storage development pipeline.<\/li>\n<li>Published the ESG Sustainability Report with updated disclosures aligned with global standards on\u00a0July 29, 2021.<\/li>\n<li>Carve-out IPO of\u00a0CSI Solar\u00a0subsidiary remains on track.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>Second Quarter 2021 Results<\/strong><\/p>\n<p>Total module shipments in the second\u00a0quarter of 2021 were 3.66 GW, a 26% yoy increase and 17% quarter-over-quarter (&#8220;qoq&#8221;) increase. Of the total, 167 MW\u00a0was shipped\u00a0to the Company&#8217;s own utility-scale solar power projects.<\/p>\n<p>&nbsp;<\/p>\n<p>Net revenue in the second quarter of 2021 grew by 105% yoy and 31% qoq to\u00a0$1,430 million.\u00a0The sequential improvement\u00a0was driven by an increase in module shipments and average selling price (&#8220;ASP&#8221;), growth in beyond-module sales and a higher revenue contribution from battery storage shipments, partially offset by lower project sales.<\/p>\n<p>&nbsp;<\/p>\n<p>Gross profit in the second quarter of 2021 was\u00a0$185 million, down 5% qoq but up 26% yoy.\u00a0Gross margin in the second quarter of 2021 was 12.9%, above guidance of 9.5% to 10.5% driven by higher module ASP, manufacturing efficiency improvements and a greater contribution from battery storage shipments and beyond-module sales. Sequentially, the second quarter gross margin was below first quarter 2021 gross margin of 17.9% mainly driven by lower project sales margin due to a geographic mix shift.<\/p>\n<p>&nbsp;<\/p>\n<p>Total operating expenses in the second quarter of 2021 were\u00a0$158 million\u00a0compared to\u00a0$151 million in the first quarter of 2021.\u00a0The\u00a0sequential\u00a0increase was mainly driven by higher shipping and handling expenses and a decrease in other operating income, partially offset by a customer claim reversal.<\/p>\n<p>&nbsp;<\/p>\n<p>Non-cash depreciation and amortization charges in the second quarter of 2021 were $66\u00a0million,\u00a0compared to $62\u00a0million in the first\u00a0quarter of 2021, and\u00a0$48 million\u00a0in the second quarter of 2020. The sequential increase was driven by\u00a0CSI Solar&#8217;s\u00a0capacity expansion as reflected in higher property, plant and equipment.<\/p>\n<p>&nbsp;<\/p>\n<p>Net foreign exchange loss in the second quarter of 2021 was\u00a0$3 million, compared to a net loss of\u00a0$7 million\u00a0in the first quarter of 2021\u00a0and a net loss of\u00a0$5 million\u00a0in the second quarter of 2020.<\/p>\n<p>&nbsp;<\/p>\n<p>Income tax benefit in the second quarter of 2021 was\u00a0$2 million, compared to\u00a0$14 million\u00a0of income tax expense in the first quarter of 2021\u00a0and\u00a0$9 million\u00a0of income tax expense in the second\u00a0quarter of 2020.\u00a0The benefit reflected lower effective tax rate and lower impact from high tax jurisdictions.<\/p>\n<p>&nbsp;<\/p>\n<p>Net income attributable to\u00a0Canadian Solar\u00a0in the second quarter of 2021 was $11\u00a0million, or\u00a0$0.18\u00a0per diluted share, compared to net income of\u00a0$23 million, or\u00a0$0.36\u00a0per diluted share in the first quarter of 2021.\u00a0The decline in net income was driven by lower gross profit and higher operating expenses, partially offset by the income tax benefit.<\/p>\n<p>&nbsp;<\/p>\n<p>Net cash used by operating activities in the second\u00a0quarter of 2021 was\u00a0$61 million, compared to\u00a0$83 million\u00a0in the first quarter of 2021. The operating cash outflow was mainly driven by an increase in accounts receivable and a continued increase in inventory, as a result of capacity expansion as well as a tactical hedge against input cost and ASP inflation. This was partially offset by higher accounts and notes payables.<\/p>\n<p>&nbsp;<\/p>\n<p>Total debt in the second quarter of 2021 was\u00a0$2.23 billion, compared to\u00a0$2.28 billion\u00a0in the first quarter of 2021. The decrease in total debt was mainly driven by a reduction of project financing upon project sales, partially offset by new borrowing and existing facility drawdowns. Non-recourse debt used to finance solar power projects decreased to\u00a0$454 million\u00a0in the second quarter of 2021 from\u00a0$522 million\u00a0in the first quarter of 2021 as a result of project sales.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Battery Storage Opportunities<\/strong><\/p>\n<p>Canadian Solar\u00a0is strategically positioned in the battery storage market, both in solar plus battery storage, as well as in stand-alone storage opportunities. The rapid growth of the energy storage market is driven by technology improvements, declining battery storage costs, rising penetration of renewable energy and accelerating retirements of fossil fuel capacity.<\/p>\n<p>&nbsp;<\/p>\n<p>Canadian Solar\u00a0has a strong brand recognition and global network given its leadership in both module manufacturing and solar project development. Both\u00a0CSI Solar\u00a0and Global Energy have focused strategically on their respective energy storage businesses:<\/p>\n<p>&nbsp;<\/p>\n<ul type=\"disc\">\n<li>Under Global Energy, energy storage project development is now fully integrated within the main solar development teams. Given the segment&#8217;s large and growing pipeline, it is positioned to capture utility-scale energy storage projects.<\/li>\n<li>Under\u00a0CSI Solar, the battery storage solutions team focuses on delivering bankable, end-to-end, integrated battery storage solutions for utility scale, commercial and industrial, as well as residential applications. These systems solutions will be complemented with long term service agreements, including future battery capacity augmentation services.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>While there are synergies between the Global Energy and\u00a0CSI Solar\u00a0teams, both operate independently and on different sections of the battery storage value chain. The project pipeline for each team should be assessed independently. Please refer to the Global Energy and\u00a0CSI Solar\u00a0sections of this document for specific pipeline figures.<\/p>\n<p>&nbsp;<\/p>\n<p><em><span style=\"text-decoration: underline;\">Solar Project Pipeline<\/span><\/em><\/p>\n<p>As of\u00a0June 30, 2021, the Company&#8217;s total project pipeline was 22.2 GWp, including 1.7 GWp under construction, 4.1 GWp of backlog, and 16.4 GWp of earlier stage pipeline. The backlog includes projects that have passed their Risk Cliff Date and are expected to be built in the next one to four years. A project&#8217;s Risk Cliff Date depends on the country where the project is located and is defined as the date on which the project passes the last high-risk development stage. This is usually after the projects have received all the required environmental and regulatory approvals, interconnection agreements, feed-in tariff (&#8220;FIT&#8221;) arrangements and power purchase agreements (&#8220;PPAs&#8221;). 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.<\/p>\n<p>&nbsp;<\/p>\n<p>The Company&#8217;s pipeline includes early- to mid-stage project opportunities currently under development but that are yet to be de-risked.<\/p>\n<p>&nbsp;<\/p>\n<p>The following table presents the Company&#8217;s total project pipeline.<\/p>\n<div>\n<table border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td style=\"text-align: center;\" colspan=\"6 style=\" nowrap=\"nowrap\"><strong>Total Project Pipeline(as of\u00a0June 30, 2021) \u2013 MWp<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\" nowrap=\"nowrap\"><strong>Region<\/strong><\/td>\n<td nowrap=\"nowrap\">\n<p style=\"text-align: center;\"><strong>In Construction<\/strong><\/p>\n<\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\"><strong>Backlog<\/strong><\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\"><strong>Pipeline<\/strong><\/td>\n<td nowrap=\"nowrap\">\n<p style=\"text-align: center;\"><strong>Total<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\" nowrap=\"nowrap\">North America<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">115<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">744<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">4,900<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><strong>5,759<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\" nowrap=\"nowrap\">Latin America<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">981*<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">2,100<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">4,310<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><strong>7,391<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\" nowrap=\"nowrap\">Europe, the\u00a0Middle East\u00a0and\u00a0Africa\u00a0(&#8220;EMEA&#8221;)<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">&#8211;<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">455*<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">3,632<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><strong>4,087<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\" nowrap=\"nowrap\">Japan<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">145<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">236<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">72<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><strong>453<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\" nowrap=\"nowrap\">Asia Pacific\u00a0excluding\u00a0Japan\u00a0and\u00a0China<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">347<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">191<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">1,547<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><strong>2,085<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\" nowrap=\"nowrap\">China\u00a0(part of\u00a0CSI Solar)<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">80<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">403<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">1,920<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><strong>2,403<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\" nowrap=\"nowrap\"><strong>Total<\/strong><\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><strong>1,668<\/strong><\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><strong>4,129<\/strong><\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><strong>16,381<\/strong><\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><strong>22,178<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"6\" nowrap=\"nowrap\"><i>*Note: Gross MWp size of projects includes 573 MWp in construction in\u00a0Latin America,<\/i><\/p>\n<p><i>and 110 MWp in backlog in EMEA, that are not owned by\u00a0Canadian Solar\u00a0or have been sold to third parties.<\/i><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>The Company has 381 MWp of premium, high FIT projects in\u00a0Japan. The table below sets forth the expected COD schedule of the Company&#8217;s project backlog in development and construction in\u00a0Japan, as of\u00a0June 30, 2021:<\/p>\n<p>&nbsp;<\/p>\n<p><b>Expected COD Schedule\u00a0<\/b><b>\u2013\u00a0<\/b><b>MWp<\/b><\/p>\n<div>\n<div>\n<table border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td style=\"text-align: center;\"><b>2021<\/b><\/td>\n<td style=\"text-align: center;\"><b>2022<\/b><\/td>\n<td style=\"text-align: center;\"><b>2023 and<br \/>\nthereafter<\/b><\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\"><b>Total<\/b><\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\" nowrap=\"nowrap\">31<\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\">190<\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\">160<\/td>\n<td nowrap=\"nowrap\">\n<p style=\"text-align: center;\"><b>381<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<p><span style=\"text-decoration: underline;\"><em>Battery Storage Project Pipeline<\/em><\/span><\/p>\n<p>The Global Energy segment has been actively developing utility-scale solar plus energy storage projects, as well as stand-alone battery storage projects. The\u00a0Company found that virtually all its solar power projects under development can co-host energy storage facilities and has done so since the first quarter of 2021. By co-hosting energy storage facilities with solar power plants on the same piece of land and using the same interconnection point, the Company expects to significantly enhance the value of its assets under development.<\/p>\n<p>&nbsp;<\/p>\n<p>Canadian Solar\u00a0has 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.<\/p>\n<p>&nbsp;<\/p>\n<p>The table below sets forth<strong>\u00a0Global Energy&#8217;s storage project development<\/strong>\u00a0backlog and pipeline.<\/p>\n<div>\n<table border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td colspan=\"6\"><strong>Storage\u00a0Project Development Backlog and Pipeline\u00a0(as of\u00a0June 30, 2021) \u2013 MWh<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\" nowrap=\"nowrap\"><b>Region<\/b><\/td>\n<td style=\"text-align: center;\"><strong>In Construction<\/strong><\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\"><strong>Backlog<\/strong><\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\"><strong>Pipeline<\/strong><\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\"><strong>Total<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\" nowrap=\"nowrap\">North America<\/td>\n<td style=\"text-align: right;\">1,501<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">800<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">9,285<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><strong>11,586<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\" nowrap=\"nowrap\">Latin America<\/td>\n<td style=\"text-align: right;\">&#8211;<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">&#8211;<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">4,505<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><strong>4,505<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\" nowrap=\"nowrap\">Europe, the\u00a0Middle East\u00a0and\u00a0Africa\u00a0(&#8220;EMEA&#8221;)<\/td>\n<td style=\"text-align: right;\">&#8211;<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">&#8211;<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">1,242<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><strong>1,242<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\" nowrap=\"nowrap\">Japan<\/td>\n<td style=\"text-align: right;\">&#8211;<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">&#8211;<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">19<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><strong>19<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\" nowrap=\"nowrap\">Asia Pacific\u00a0excluding\u00a0Japan<\/td>\n<td style=\"text-align: right;\">&#8211;<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">&#8211;<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">1,910<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><strong>1,910<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"2\" nowrap=\"nowrap\"><strong>Total<\/strong><\/td>\n<td style=\"text-align: right;\"><strong>1,501<\/strong><\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><strong>800<\/strong><\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><strong>16,961<\/strong><\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><strong>19,262<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>&nbsp;<\/p>\n<p><span style=\"text-decoration: underline;\"><em>Solar Power Plants and Battery Storage Projects in Operation<\/em><\/span><\/p>\n<p>As of\u00a0June 30, 2021, the Company&#8217;s solar power plants in operation totaled 391 MWp, with a combined estimated net resale value of approximately\u00a0$390 million\u00a0to\u00a0Canadian Solar. The estimated resale value is based on selling prices that\u00a0Canadian Solar\u00a0is currently negotiating or transaction prices of similar assets in the relevant markets.<\/p>\n<div>\n<table border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td colspan=\"5\" nowrap=\"nowrap\">\n<p style=\"text-align: center;\"><strong>Solar Power Plants in Operation \u2013 MWp<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"text-align: center;\" nowrap=\"nowrap\"><strong>Latin America<\/strong><\/td>\n<td style=\"text-align: center;\"><strong>Japan<\/strong><\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\"><strong>Asia Pacific\u00a0<\/strong><\/p>\n<p><strong>ex.\u00a0Japan\u00a0and\u00a0China<\/strong><\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\"><strong>China<\/strong><\/td>\n<td nowrap=\"nowrap\">\n<p style=\"text-align: center;\"><strong>Total<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\">\n<p style=\"text-align: center;\">100<\/p>\n<\/td>\n<td style=\"text-align: center;\">28<\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\">61<\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\">202<\/td>\n<td nowrap=\"nowrap\">\n<p style=\"text-align: center;\"><strong>391<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"5\"><i>Note: Gross MWp size of projects, includes\u00a0<\/i><i>26<\/i><i>\u00a0MWp in\u00a0Asia Pacific\u00a0ex.\u00a0Japan\u00a0and\u00a0China\u00a0already sold to<br \/>\nthird parties.\u00a0China\u00a0portfolio is part of\u00a0CSI Solar.<\/i><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>&nbsp;<\/p>\n<p><i><u>Operating Results<\/u><\/i><\/p>\n<p>The following table presents unaudited select results of operations data of the Company&#8217;s Global Energy segment.<\/p>\n<div>\n<p><b>June 30,<\/b><b>2021<\/b><\/p>\n<table style=\"height: 417px;\" border=\"0\" width=\"933\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td colspan=\"6\" nowrap=\"nowrap\">\n<p style=\"text-align: center;\"><b>Global Energy Segment Financial Results<\/b><\/p>\n<p style=\"text-align: center;\"><b>(<\/b><b>In Thousands of\u00a0U.S.\u00a0Dollars, Except Percentages and Unless Otherwise Stated)<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\"><\/td>\n<td style=\"text-align: center;\" colspan=\"3\" nowrap=\"nowrap\"><b>Three Months Ended<\/b><\/td>\n<td style=\"text-align: center;\" colspan=\"2\" nowrap=\"nowrap\"><b>Six Months Ended<\/b><\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\"><\/td>\n<td nowrap=\"nowrap\">\n<p style=\"text-align: center;\"><b>June 30,<\/b><\/p>\n<p style=\"text-align: center;\"><b>2021<\/b><\/p>\n<\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\"><b>March 31,<\/b><\/p>\n<p><b>2021<\/b><\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\"><b>June 30,<br \/>\n2020*<\/b><\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\"><b>June 30,<\/b><\/p>\n<p><b>2021<\/b><\/td>\n<td nowrap=\"nowrap\">\n<p style=\"text-align: center;\"><b>June 30,<\/b><\/p>\n<p style=\"text-align: center;\"><b>2020*<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\">Net revenues<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">280,614<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">471,062<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">32,433<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">751,676<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">274,983<\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\">Cost of revenues<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">268,855<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">358,037<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">29,080<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">626,892<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">183,014<\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\">Gross profit<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">11,759<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">113,025<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">3,353<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">124,784<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">91,969<\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\">Operating expenses<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">15,632<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">27,944<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">17,991<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">43,576<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">45,777<\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\"><span id=\"spanHghltf23a\">Income (loss)\u00a0from operations<\/span><\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">(3,873)<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">85,081<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">(14,638)<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">81,208<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">46,192<\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\"><i>Gross margin<\/i><\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><i>4.2%<\/i><\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><i>24.0%<\/i><\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><i>10.3%<\/i><\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><i>16.6%<\/i><\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><i>33.4%<\/i><\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\"><i>Operating margin<\/i><\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><i>-1.4%<\/i><\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><i>18.1%<\/i><\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><i>-45.1%<\/i><\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><i>10.8%<\/i><\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><i>16.8%<\/i><\/td>\n<\/tr>\n<tr>\n<td colspan=\"7\" nowrap=\"nowrap\"><i>*Historical amounts for the three months and six months ended\u00a0June 30, 2020\u00a0have been revised to conform to current period presentation<\/i><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>&nbsp;<\/p>\n<p><b>CSI Solar Segment<\/b><\/p>\n<p>CSI Solar&#8217;s\u00a02021 and 2022 capacity expansion targets are detailed below.<\/p>\n<p>&nbsp;<\/p>\n<p><b><u>Manufacturing Capacity, GW (as of period end)<\/u><\/b><\/p>\n<div>\n<table border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td nowrap=\"nowrap\"><\/td>\n<td><b>FY20 Actual<\/b><\/td>\n<td><b>1H21 Actual<\/b><\/td>\n<td><b>FY21 Plan<\/b><\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\">Ingot<\/td>\n<td style=\"text-align: center;\">2.1<\/td>\n<td style=\"text-align: center;\">5.1<\/td>\n<td style=\"text-align: center;\">5.1<\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\">Wafer<\/td>\n<td style=\"text-align: center;\">6.3<\/td>\n<td style=\"text-align: center;\">8.7<\/td>\n<td style=\"text-align: center;\">11.5<\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\">Cell<\/td>\n<td style=\"text-align: center;\">9.6<\/td>\n<td style=\"text-align: center;\">13.3<\/td>\n<td style=\"text-align: center;\">13.9<\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\">Module<\/td>\n<td style=\"text-align: center;\">16.1<\/td>\n<td style=\"text-align: center;\">19.7<\/td>\n<td style=\"text-align: center;\">22.7<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>Note:\u00a0CSI Solar&#8217;s\u00a0capacity expansion plans are subject to change without notice based on market conditions and capital allocation plans.<\/p>\n<p>&nbsp;<\/p>\n<p><i><u>Operating Results<\/u><\/i><\/p>\n<p>The following table presents unaudited select results of operations data of the\u00a0CSI Solar\u00a0segment for the periods indicated.<\/p>\n<div>\n<table border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td colspan=\"10\" nowrap=\"nowrap\">\n<p style=\"text-align: center;\"><b>CSI Solar Segment Financial Results<\/b><b>*<\/b><b>\u00a0<\/b><\/p>\n<p style=\"text-align: center;\"><b>(In Thousands of\u00a0U.S.\u00a0Dollars, Except Percentages and Unless Otherwise Stated)<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\"><\/td>\n<td style=\"text-align: center;\" colspan=\"4\" nowrap=\"nowrap\"><b>Three Months Ended<\/b><\/td>\n<td style=\"text-align: center;\" colspan=\"4\" nowrap=\"nowrap\"><b>Six Months Ended<\/b><\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\"><\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\"><b>June 30,<br \/>\n2021<\/b><\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\"><b>March 31,<br \/>\n2021<\/b><\/td>\n<td style=\"text-align: center;\" colspan=\"2\" nowrap=\"nowrap\"><b>June 30,<br \/>\n2020**<\/b><\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\"><b>June 30,<br \/>\n2021<\/b><\/td>\n<td colspan=\"2\" nowrap=\"nowrap\">\n<p style=\"text-align: center;\"><b>June 30,<\/b><\/p>\n<p style=\"text-align: center;\"><b>2020**<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\">Net revenues<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">1,183,958<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">695,152<\/td>\n<td style=\"text-align: right;\" colspan=\"2\" nowrap=\"nowrap\">709,180<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">1,879,110<\/td>\n<td style=\"text-align: right;\" colspan=\"2\" nowrap=\"nowrap\">1,398,927<\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\">Cost of revenues<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">1,028,470<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">627,694<\/td>\n<td style=\"text-align: right;\" colspan=\"2\" nowrap=\"nowrap\">551,812<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">1,656,164<\/td>\n<td style=\"text-align: right;\" colspan=\"2\" nowrap=\"nowrap\">1,079,390<\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\">Gross profit<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">155,488<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">67,458<\/td>\n<td style=\"text-align: right;\" colspan=\"2\" nowrap=\"nowrap\">157,368<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">222,946<\/td>\n<td style=\"text-align: right;\" colspan=\"2\" nowrap=\"nowrap\">319,537<\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\">Operating expenses<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">140,516<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">120,126<\/td>\n<td style=\"text-align: right;\" colspan=\"2\" nowrap=\"nowrap\">79,484<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">260,642<\/td>\n<td style=\"text-align: right;\" colspan=\"2\" nowrap=\"nowrap\">157,472<\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\">Income (loss) from operations<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">14,972<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">(52,668)<\/td>\n<td style=\"text-align: right;\" colspan=\"2\" nowrap=\"nowrap\">77,884<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">(37,696)<\/td>\n<td style=\"text-align: right;\" colspan=\"2\" nowrap=\"nowrap\">162,065<\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\"><i>Gross margin<\/i><\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><i>13.1%<\/i><\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><i>9.7%<\/i><\/td>\n<td style=\"text-align: right;\" colspan=\"2\" nowrap=\"nowrap\"><i>22.2%<\/i><\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><i>11.9%<\/i><\/td>\n<td style=\"text-align: right;\" colspan=\"2\" nowrap=\"nowrap\"><i>22.8%<\/i><\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\"><i>Operating margin<\/i><\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><i>1.3%<\/i><\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><i>-7.6%<\/i><\/td>\n<td style=\"text-align: right;\" colspan=\"2\" nowrap=\"nowrap\"><i>11.0%<\/i><\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><i>-2.0%<\/i><\/td>\n<td style=\"text-align: right;\" colspan=\"2\" nowrap=\"nowrap\"><i>11.6%<\/i><\/td>\n<\/tr>\n<tr>\n<td colspan=\"10\" nowrap=\"nowrap\"><i>*\u00a0<\/i><i>I<\/i><i>ncludes\u00a0<\/i><i>effects of both sales to\u00a0<\/i><i>third part<\/i><i>y customers\u00a0<\/i><i>and to\u00a0<\/i><i>the Company&#8217;s Global En<\/i><i>ergy\u00a0<\/i><i>Segment<\/i><i>.<\/i><i>\u00a0Please refer to the<br \/>\nattached financial tables for intercompany transaction elimination information. Income from operations reflects<br \/>\nmanagement&#8217;s allocation and estimate as some services are shared by the Company&#8217;s two business segments<\/i><\/td>\n<\/tr>\n<tr>\n<td colspan=\"10\" nowrap=\"nowrap\"><i>** Historical amounts for the three months and six months ended\u00a0June 30, 2020\u00a0have been revised to conform to current<br \/>\nperiod presentation<\/i><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>The table below provides the geographic distribution of the net revenue of\u00a0CSI Solar:<\/p>\n<div>\n<table border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td style=\"text-align: center;\" colspan=\"9\" nowrap=\"nowrap\"><b>CSI Solar Net Revenues Geographic Distribution* (In Millions of\u00a0U.S.\u00a0Dollars, Except Percentages)<\/b><\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\"><\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\"><b>Q2 2021<\/b><\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\"><b>% of Net<br \/>\nRevenues<\/b><\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\"><b>Q1 2021<\/b><\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\"><b>% of Net<br \/>\nRevenues<\/b><\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\"><b>Q2 2020<\/b><\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\"><b>% of Net<br \/>\nRevenues<\/b><\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\">Asia<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">527<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">46<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">240<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">39<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">265<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">40<\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\">Americas<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">421<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">37<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">261<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">42<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">211<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">32<\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\">Europe\u00a0and others<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">201<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">17<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">117<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">19<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">187<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">28<\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\">Total<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">1,149<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">100<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">618<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">100<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">663<\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\">100<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><i>*Excludes sales from\u00a0CSI Solar\u00a0to Global Energy.<\/i><\/p>\n<p>&nbsp;<\/p>\n<p>CSI Solar\u00a0shipped 3.7 GW of modules to nearly 80\u00a0countries in the second\u00a0quarter of 2021.\u00a0The top five markets ranked by shipments were\u00a0China, the\u00a0U.S.,\u00a0Brazil,\u00a0Germany\u00a0and\u00a0Japan.<\/p>\n<p>&nbsp;<\/p>\n<p><i><u>Battery Storage Solutions<\/u><\/i><\/p>\n<p>&nbsp;<\/p>\n<p>Within\u00a0CSI Solar, the battery storage solutions team delivers competitive turnkey, integrated battery storage solutions, including bankable and fully wrapped capacity and performance guarantees. These guarantees are complemented with long term operations and maintenance agreements, which include future battery capacity augmentation services and bring in longer term, stable income.<\/p>\n<p>&nbsp;<\/p>\n<p>The table below sets forth\u00a0<b>CSI Solar&#8217;s\u00a0battery storage system integration&#8217;s<\/b>\u00a0contracted projects and\/or under construction, those in high probability forecast, and pipeline, as of\u00a0June 30, 2021.<\/p>\n<div>\n<table border=\"0\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><\/td>\n<td style=\"text-align: right;\"><b>Contracted\/<\/b><\/p>\n<p><b>In Construction<\/b><\/td>\n<td style=\"text-align: right;\"><b>Forecast<\/b><\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><b>Pipeline<\/b><\/td>\n<td style=\"text-align: right;\" nowrap=\"nowrap\"><b>Total<\/b><\/td>\n<\/tr>\n<tr>\n<td nowrap=\"nowrap\">Storage (MWh)<\/td>\n<td style=\"text-align: center;\">861<\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\">1,400<\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\">4,351<\/td>\n<td style=\"text-align: center;\" nowrap=\"nowrap\">6,612<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p>&nbsp;<\/p>\n<p>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.<\/p>\n<p>&nbsp;<\/p>\n<p id=\"PURL\"><img loading=\"lazy\" decoding=\"async\" title=\"Cision\" src=\"https:\/\/c212.net\/c\/img\/favicon.png?sn=CN73328&amp;sd=2021-08-12\" alt=\"Cision\" width=\"12\" height=\"12\" \/>\u00a0View original content:<span style=\"color: #993300;\"><a id=\"PRNURL\" style=\"color: #993300;\" href=\"https:\/\/www.prnewswire.com\/news-releases\/canadian-solar-reports-second-quarter-2021-results-301354209.html\" rel=\"nofollow\">https:\/\/www.prnewswire.com\/news-releases\/canadian-solar-reports-second-quarter-2021-results-301354209.html<\/a><\/span><\/p>\n<p>SOURCE\u00a0Canadian Solar Inc.<\/p>\n<p>Isabel Zhang, Investor Relations, Canadian Solar Inc., investor@canadiansolar.com; David Pasquale, Global IR Partners, Tel: +1-914-337-8801, csiq@globalirpartners.com<\/p>\n","protected":false},"excerpt":{"rendered":"<p>GUELPH, ON,\u00a0Aug. 12, 2021\u00a0\/PRNewswire\/ &#8212;\u00a0Canadian Solar Inc.\u00a0(&#8220;Canadian Solar&#8221; or the &#038;#8220 [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-801","post","type-post","status-publish","format-standard","hentry","category-results"],"_links":{"self":[{"href":"https:\/\/canadiansolar-energy.co.jp\/en\/news_release\/wp-json\/wp\/v2\/posts\/801","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canadiansolar-energy.co.jp\/en\/news_release\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadiansolar-energy.co.jp\/en\/news_release\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadiansolar-energy.co.jp\/en\/news_release\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/canadiansolar-energy.co.jp\/en\/news_release\/wp-json\/wp\/v2\/comments?post=801"}],"version-history":[{"count":23,"href":"https:\/\/canadiansolar-energy.co.jp\/en\/news_release\/wp-json\/wp\/v2\/posts\/801\/revisions"}],"predecessor-version":[{"id":824,"href":"https:\/\/canadiansolar-energy.co.jp\/en\/news_release\/wp-json\/wp\/v2\/posts\/801\/revisions\/824"}],"wp:attachment":[{"href":"https:\/\/canadiansolar-energy.co.jp\/en\/news_release\/wp-json\/wp\/v2\/media?parent=801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadiansolar-energy.co.jp\/en\/news_release\/wp-json\/wp\/v2\/categories?post=801"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadiansolar-energy.co.jp\/en\/news_release\/wp-json\/wp\/v2\/tags?post=801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}