Canadian Solar Reports Second Quarter 2023 Results
- Record net income of $170 million in Q2 2023
- 62% increase in solar module shipments year-over-year
- 39% increase in gross profit quarter-over-quarter
- None.
Highlights
- Record quarterly net income attributable to Canadian Solar of
or$170 million per diluted share, compared to net income of$2.39 , or$84 million per diluted share, in the first quarter of 2023, and net income of$1.19 , or$74 million per diluted share, in the second quarter of 2022.$1.07 62% increase in solar module shipments year-over-year ("yoy") to 8.2 GW, compared to guidance of 8.1 GW to 8.4 GW.39% increase in net revenues quarter-over-quarter ("qoq") and2% yoy to , compared to guidance of$2.4 billion to$2.4 billion .$2.6 billion 39% increase in gross profit qoq and19% yoy to , with an$441 million 18.6% gross margin, including an inventory write-down, compared to guidance of19% to21% .- Gross proceeds of approximately
from the initial public offering ("IPO") of its majority-owned subsidiary CSI Solar Co., Ltd. ("CSI Solar") on the Shanghai Stock Exchange's Sci-Tech Innovation Board under the stock code 688472.$975 million - 25 GWp of solar development pipeline and 52 GWh of battery energy storage development pipeline, as of June 30, 2023 (Recurrent Energy, formerly Global Energy).
Dr. Shawn Qu, Chairman and CEO, commented, "We achieved strong results in the second quarter of 2023 delivering record net income of
Yan Zhuang, President of Canadian Solar's CSI Solar subsidiary, said, "CSI Solar achieved strong results in the second quarter despite the sharp decline in market prices. Raw material costs declined faster than anticipated and have now likely bottomed. This led to an inventory write-down of raw materials during the second quarter, directly impacting our gross margin. However, this was more than offset by operating leverage, resulting in strong operating income. Looking ahead, we expect to significantly optimize our cost structure as we ramp up our internal cell and wafer capacity in the second half of the year and meaningfully improve on our capacity's vertical integration.
"In addition, we made the strategic decision to rebrand our utility-scale turnkey battery energy storage business under our new e-STORAGE brand, which we believe more clearly articulates our business. We continue to build momentum in this fast-growing business, with our e-STORAGE platform now having a contracted backlog of
Ismael Guerrero, CEO of Canadian Solar's Recurrent Energy subsidiary, said, "We achieved significant revenue and profit growth in the second quarter with the sale of our flagship 100 MWp Azuma Kofuji project in
Dr. Huifeng Chang, Senior VP and CFO, added, "In the second quarter, we achieved
Second Quarter 2023 Results
Total module shipments recognized as revenues in the second quarter of 2023 were 8.2 GW, up
Net revenues in the second quarter of 2023 increased
Gross profit in the second quarter of 2023 was
Total operating expenses in the second quarter of 2023 were
Depreciation and amortization charges in the second quarter of 2023 were
Net interest expense in the second quarter of 2023 was
Net foreign exchange and derivative gain in the second quarter of 2023 was
Net income attributable to Canadian Solar in the second quarter of 2023 was
Net cash flow provided by operating activities in the second quarter of 2023 was
Total debt was
Total project assets were
The net value of solar power systems was
Corporate Structure
The Company has two business segments: Recurrent Energy, formerly Global Energy, and CSI Solar. The two businesses operate as follows:
- Recurrent Energy (formerly Global Energy) is one of the world's largest clean energy project development platforms with 14 years of experience, having delivered over 9 GWp of solar power projects and over 3 GWh of battery storage projects. It is vertically integrated and has strong expertise in greenfield origination, development, financing, execution, operations and maintenance, and asset management.
- CSI Solar consists of solar module and battery storage manufacturing, and delivery of total system solutions, including inverters, solar system kits and EPC (engineering, procurement, and construction) services. CSI Solar's e-STORAGE branded battery storage business includes both its utility-scale turnkey battery system solutions, as well as a small but growing residential battery storage business. These storage systems solutions are complemented with long-term service agreements, including future battery capacity augmentation services.
Recurrent Energy Segment (formerly Global Energy)
As of June 30, 2023, the Company had a leading position with a total global solar development pipeline of approximately 25 GWp and an energy storage development pipeline of over 52 GWh.
While Recurrent Energy's business model was historically develop-to-sell, as previously communicated, the Company is in the process of adjusting its strategy to create greater asset value and retain greater ownership of projects in select markets to increase revenues generated through recurring income, such as power sales, operations and maintenance, and asset management income.
The business model will consist of three key drivers:
- Operating portfolio to drive stable, diversified cash flows in growth markets with stable currencies;
- Project sales (or asset rotations) in the rest of the world to drive cash-efficient growth model as value from project sales will help fund growth in operating assets in stable currency markets;
- Power services through long-term operations and maintenance ("O&M") contracts, currently with 6 GW of contracted projects, to drive stable and long-term recurring earnings and synergies with the project development platform.
Recurrent Energy is continuing to evaluate adjustments in its growth strategy to hold valuable solar assets for the longer term.
Project Development Pipeline – Solar
As of June 30, 2023, Recurrent Energy's total solar project development pipeline was 25.0 GWp, including 1.6 GWp under construction, 6.2 GWp of backlog, and 17.2 GWp of projects in advanced and early-stage pipelines, defined 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 power purchase agreements ("PPAs"). A significant majority 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 Recurrent Energy that are in the process of securing interconnection.
The following table presents Recurrent Energy's total solar project development pipeline.
Solar Project Development Pipeline (as of June 30, 2023) – MWp* | ||||||
Region | In | Backlog | Advanced | Early-Stage | Total | |
- | 422 | 1,642 | 4,559 | 6,623 | ||
1,228** | 2,272** | 887 | 451 | 4,838 | ||
| 89 | 1,596 | 2,770 | 3,499 | 7,954 | |
4 | 170 | 14 | - | 188 | ||
300 | 1,745** | - | 1,500 | 3,545 | ||
- | 3 | 1,001 | 837 | 1,841 | ||
Total | 1,621 | 6,208 | 6,314 | 10,846 | 24,989 | |
*All numbers are gross MWp. **Including 671 MWp in construction and 711 MWp in backlog that are owned by or already sold to third parties. |
Project Development Pipeline – Battery Energy Storage
As of June 30, 2023, Recurrent Energy's total battery storage project development pipeline was 51.7 GWh, including 1.7 GWh under construction and in backlog, and 50.0 GWh of projects in advanced and early-stage pipelines.
The table below sets forth Recurrent Energy's total storage project development pipeline.
Energy Storage Project Development Pipeline (as of June 30, 2023) – MWh | |||||
Region | In | Backlog | Advanced | Early-Stage | Total |
- | - | 3,898 | 14,747 | 18,645 | |
- | 1,085 | 2,040 | - | 3,125 | |
EMEA | - | 110 | 4,418 | 14,769 | 19,297 |
- | - | - | 1,054 | 1,054 | |
- | - | - | 7,500 | 7,500 | |
24 | 454 | 200 | 1,440 | 2,118 | |
Total | 24 | 1,649 | 10,556 | 39,510 | 51,739 |
Projects in Operation – Solar and Battery Energy Storage Power Plants
As of June 30, 2023, Recurrent Energy's solar power plants in operation totaled 681 MWp, with a combined estimated net resale value of approximately
Solar Power Plants in Operation – MWp* | ||||
ex. | Total | |||
508 | 76 | 85 | 12 | 681 |
*All numbers are net MWp owned by Recurrent Energy; total gross MWp of projects is 1,135 MWp, including volume that is already sold |
As of June 30, 2023, Recurrent Energy's energy storage power plants in operation totaled 580 MWh, comprising Recurrent Energy's
Operating Results
The following table presents select unaudited results of operations data of the Recurrent Energy segment for the periods indicated.
Recurrent Energy Segment Financial Results (In Thousands of | |||||||
Three Months Ended | Six Months Ended | ||||||
June 30, 2023 | March 31, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | |||
Net revenues | 360,045 | 20,052 | 553,984 | 380,097 | 646,950 | ||
Cost of revenues | 201,981 | 12,843 | 473,979 | 214,824 | 549,109 | ||
Gross profit | 158,064 | 7,209 | 80,005 | 165,273 | 97,841 | ||
Operating expenses | 35,874 | 22,414 | 24,326 | 58,288 | 43,173 | ||
Income (loss) from | 122,190 | (15,205) | 55,679 | 106,985 | 54,668 | ||
Gross margin | 43.9 % | 36.0 % | 14.4 % | 43.5 % | 15.1 % | ||
Operating margin | 33.9 % | -75.8 % | 10.1 % | 28.1 % | 8.5 % | ||
* 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
Solar Modules
CSI Solar shipped 8.2 GW of solar modules to more than 70 countries in the second quarter of 2023. For the second quarter of 2023, the top five markets ranked by shipments were
CSI Solar's 2024 solar capacity expansion targets are set forth below.
Solar Manufacturing Capacity, GW* | ||||
June 2023 Actual | December 2023 Plan | March 2024 Plan | December 2024 Plan | |
Ingot | 20.4 | 20.4 | 20.4 | 50.4 |
Wafer | 21.0 | 21.0 | 30.0 | 60.0 |
Cell | 26.0 | 50.0 | 54.0 | 70.0 |
Module | 37.7 | 50.0 | 59.0 | 80.0 |
*Nameplate annualized capacities at said point in time. Capacity expansion plans are subject to change without notice |
Battery Storage Solutions
e-STORAGE, formerly known as CSI Energy Storage, is CSI Solar's utility-scale battery energy storage subsidiary and platform. e-STORAGE provides customers with competitive turnkey, integrated, utility-scale battery storage solutions, including bankable, end-to-end, utility-scale, turnkey battery storage system solutions across various applications. System performance is complemented with long-term service agreements, which include future battery capacity augmentation services and bring in long-term, stable income.
As of June 30, 2023, e-STORAGE had a total project turnkey pipeline of 26 GWh, which includes both contracted and in-construction projects, as well as projects at different stages of the negotiation process. In addition, e-STORAGE had 2.4 GWh of operating battery storage projects contracted under long-term service agreements, all of which were battery energy storage projects previously executed by e-STORAGE.
During the second quarter of 2023, e-STORAGE signed approximately
The table below sets forth e-STORAGE's battery storage manufacturing capacity expansion targets.
Battery Storage Manufacturing | June 2023 Actual | December 2023 Plan |
SolBank | 2.5 | 10.0 |
*Nameplate annualized capacities at said point in time. Capacity expansion plans are subject to change without notice |
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 | |||||||||
Three Months Ended | Six Months Ended | ||||||||
June 30, | March 31, | June 30, 2022 | June 30, | June 30, 2022 | |||||
Net revenues | 2,013,993 | 1,709,730 | 1,816,410 | 3,723,723 | 3,026,404 | ||||
Cost of revenues | 1,726,154 | 1,394,121 | 1,526,755 | 3,120,275 | 2,560,920 | ||||
Gross profit | 287,839 | 315,609 | 289,655 | 603,448 | 465,484 | ||||
Operating expenses | 168,455 | 146,151 | 227,262 | 314,606 | 371,193 | ||||
Income from operations | 119,384 | 169,458 | 62,393 | 288,842 | 94,291 | ||||
Gross margin | 14.3 % | 18.5 % | 15.9 % | 16.2 % | 15.4 % | ||||
Operating margin | 5.9 % | 9.9 % | 3.4 % | 7.8 % | 3.1 % | ||||
*Include effects of both sales to third-party customers and to the Company's Recurrent Energy segment. Please refer to the |
The table below provides the geographic distribution of the net revenues of CSI Solar:
CSI Solar Net Revenues Geographic Distribution* (In Millions of | ||||||||
Q2 2023 | % of Net | Q1 2023 | % of Net | Q2 2022 | % of Net | |||
722 | 36 | 555 | 33 | 587 | 33 | |||
716 | 36 | 632 | 38 | 742 | 42 | |||
566 | 28 | 494 | 29 | 431 | 25 | |||
Total | 2,004 | 100 | 1,681 | 100 | 1,760 | 100 | ||
*Excludes sales from CSI Solar to Recurrent 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, the 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, supply chain constraints, and geopolitical conflicts. Management's views and estimates are subject to change without notice.
For the third quarter of 2023, the Company expects total revenue to be in the range of
For the full year of 2023, the Company reiterates its prior outlook for CSI Solar's total module shipments to be in the range of 30 GW to 35 GW. CSI Solar's battery storage shipments are expected to be in the range of 1.8 GWh to 2.0 GWh. The Company's total revenue is expected to be in the range of
Dr. Shawn Qu, Chairman and CEO, commented, "We expect margins to rebalance through the year as we restrict the production of non-vertically integrated solar module shipments while strengthening our leadership position in premium markets and segments. While competition remains intense, the successful IPO of our CSI Solar subsidiary, strong balance sheet and brand solidly position us to achieve profitable growth, as we continue making long-term investments that create lasting value for shareholders."
Recent Developments
On July 31, 2023, Canadian Solar released its 2022 Sustainability Report, which highlights the Company's progress toward advancing its sustainability strategy from an environmental, social, and governance (ESG) perspective. The sustainability disclosures in this report are aligned with global standards set by the TCFD (Task Force on Climate-Related Disclosures), SASB (the Sustainability Accounting Standards Board) and GRI (Global Reporting Initiative).
Recurrent Energy (formerly Global Energy)
On August 16, 2023, Canadian Solar announced its wholly-owned subsidiary Recurrent Energy secured a 20-year tolling agreement with Arizona Public Service Company ("APS") for the 1,200 MWh Papago energy storage project under development in
On June 26, 2023, Canadian Solar announced its wholly-owned subsidiary Recurrent Energy secured a
On May 31, 2023, Canadian Solar announced its wholly owned subsidiary Recurrent Energy completed the sale of its flagship 100 MWp Azuma Kofuji solar mega-project located in Fukushima prefecture to Japanese investors arranged by Mizuho Securities Co., Ltd. Canadian Solar recognized the revenue from the transaction in the second quarter of 2023. Recurrent Energy's local subsidiary will continue to provide long term operations and maintenance service for the plant after the transaction.
CSI Solar
Canadian Solar announced its majority-owned subsidiary CSI Solar completed its IPO and its shares started trading on the Shanghai Stock Exchange's Sci-Tech Innovation Board on June 9, 2023 under the stock code 688472. In the IPO, CSI Solar issued 541,058,824 shares, representing
On August 17, 2023, Canadian Solar announced e-STORAGE, which is part of its majority-owned subsidiary CSI Solar, will deliver 1,200 MWh of energy storage solutions to the Company's wholly-owned subsidiary Recurrent Energy Papago energy storage project in
On August 9, 2023, Canadian Solar announced the signing of a multi-year module supply agreement with EDF Renewables North America to deliver up to 7 GW of high-efficiency N-type TOPCon solar modules, which will be produced at Canadian Solar's new factory in
On July 19, 2023, Canadian Solar announced its majority-owned subsidiary CSI Solar entered into a multi-year investment agreement with the municipal government of
On July 10, 2023, Canadian Solar and its majority-owned subsidiary CSI Solar announced the rebranding of e-STORAGE, CSI Solar's utility-scale battery energy storage subsidiary and platform. Through e-STORAGE, Canadian Solar will accelerate its growth in the global energy storage market by operating e-STORAGE as a distinct business unit under CSI Solar. e-STORAGE launches with nearly 26 GWh of energy storage projects in its total pipeline and over
On June 15, 2023, Canadian Solar announced the establishment of a solar PV module production facility in
On June 8, 2023, Canadian Solar announced its majority-owned subsidiary CSI Solar entered into an agreement with Unibal, a joint venture between Union Group and Capbal Limited, to deliver battery storage systems for two projects totaling 40 MWh in the United Kingdom. The projects are expected to reach commercial operation in the first quarter of 2024.
On May 22, 2023, Canadian Solar announced its majority-owned subsidiary CSI Solar entered into an agreement to deliver 49.5MW/99MWh of turnkey battery energy storage solutions to Cero Generation and Enso Energy for their 49.5MW/99MWh battery energy storage co-located with the Larks Green solar PV project in South
Conference Call Information
The Company will hold a conference call on Tuesday, August 22, 2023, at 8:00 a.m.
A replay of the call will be available 2 hours after the conclusion of the call until 11:00 p.m.
About Canadian Solar Inc.
Canadian Solar was founded in 2001 in
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
Investor Relations Contacts:
Isabel Zhang Investor Relations Canadian Solar Inc. | David Pasquale Global IR Partners Tel: +1-914-337-8801 |
FINANCIAL TABLES FOLLOW
The following tables provide unaudited select financial data for the Company's CSI Solar and Recurrent Energy businesses.
Select Financial Data – CSI Solar and Recurrent Energy | ||||||||
Three Months Ended and As of June 30, 2023 (In Thousands of | ||||||||
CSI Solar | Recurrent | Elimination | Total | |||||
Net revenues | ||||||||
Cost of revenues | 1,726,154 | 201,981 | (4,686) | 1,923,449 | ||||
Gross profit | 287,839 | 158,064 | (5,329) | 440,574 | ||||
Gross margin | 14.3 % | 43.9 % | — | 18.6 % | ||||
Income from operations (2) | ||||||||
Supplementary | ||||||||
Interest expense (3) | ||||||||
Interest income (3) | 7,550 | 1,905 | 1 | 9,456 | ||||
Cash and cash equivalents | ||||||||
Restricted cash – current and | 1,227,340 | 11,374 | — | 1,238,714 | ||||
Non-recourse borrowings | — | 296,668 | — | 296,668 | ||||
Other short-term and long- | 1,735,482 | 881,059 | — | 2,616,541 |
Select Financial Data – CSI Solar and Recurrent Energy | ||||||||
Six Months Ended June 30, 2023 (In Thousands of | ||||||||
CSI Solar | Recurrent Energy | Elimination | Total | |||||
Net revenues | ||||||||
Cost of revenues | 3,120,275 | 214,824 | (28,370) | 3,306,729 | ||||
Gross profit | 603,448 | 165,273 | (10,146) | 758,575 | ||||
Gross margin | 16.2 % | 43.5 % | — | 18.7 % | ||||
Income from operations (2) | ||||||||
Supplementary | ||||||||
Interest expense (3) | ||||||||
Interest income (3) | 14,027 | 3,357 | 28 | 17,412 |
Select Financial Data – CSI Solar and Recurrent Energy | ||||||||
Three Months Ended and As of June 30, 2022 | ||||||||
CSI Solar | Recurrent Energy | Elimination | Total | |||||
Net revenues | ||||||||
Cost of revenues | 1,526,755 | 473,979 | (57,598) | 1,943,136 | ||||
Gross profit | 289,655 | 80,005 | 1,390 | 371,050 | ||||
Gross margin | 15.9 % | 14.4 % | — | 16.0 % | ||||
Income from operations (2) | ||||||||
Supplementary | ||||||||
Interest expense (3) | ||||||||
Interest income (3) | 3,955 | 261 | — | 4,216 | ||||
Cash and cash equivalents | ||||||||
Restricted cash – current and | 889,745 | 5,042 | — | 894,787 | ||||
Non-recourse borrowings | 36,595 | 263,586 | — | 300,181 | ||||
Other short-term and long- | 1,348,771 | 652,747 | — | 2,001,518 |
Select Financial Data – CSI Solar and Recurrent Energy | ||||||||
Six Months Ended June 30, 2022 | ||||||||
CSI Solar | Recurrent Energy | Elimination | Total | |||||
Net revenues | ||||||||
Cost of revenues | 2,560,920 | 549,109 | (97,435) | 3,012,594 | ||||
Gross profit | 465,484 | 97,841 | (11,384) | 551,941 | ||||
Gross margin | 15.4 % | 15.1 % | — | 15.5 % | ||||
Income from operations (2) | ||||||||
Supplementary | ||||||||
Interest expense (3) | ||||||||
Interest income (3) | 6,857 | 1,571 | — | 8,428 |
(1) Includes inter-segment elimination, and unallocated corporate costs not considered part of management's evaluation of business segment operating performance. |
(2) Income from operations reflects management's allocation and estimate as some services are shared by the Company's two business segments. |
(3) Represents interest expenses payable to and interest income earned from third parties. |
Select Financial Data - CSI Solar and Recurrent Energy | |||||
Three Months Ended June 30, 2023 | Three Months Ended March 31, 2023 | Three Months Ended June 30, 2022 | |||
(In Thousands of | |||||
CSI Solar Revenues: | |||||
Solar modules | |||||
Solar system kits | 216,867 | 133,587 | 150,765 | ||
Utility-scale battery storage | 13,438 | 9,815 | 227,438 | ||
Residential battery storage | 1,451 | 4,995 | — | ||
EPC and others | 49,535 | 77,956 | 31,504 | ||
Subtotal | 2,003,978 | 1,681,229 | 1,760,202 | ||
Recurrent Energy Revenues: | |||||
Solar and battery storage projects | 338,487 | 4,621 | 540,056 | ||
O&M and asset management services | 13,408 | 8,687 | 7,745 | ||
Electricity sales and others | 8,150 | 6,744 | 6,183 | ||
Subtotal | 360,045 | 20,052 | 553,984 | ||
Total net revenues |
Select Financial Data - CSI Solar and Recurrent Energy | |||
Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | ||
(In Thousands of | |||
CSI Solar Revenues: | |||
Solar modules | |||
Solar system kits | 350,454 | 241,221 | |
Utility-scale battery storage | 23,253 | 309,938 | |
Residential battery storage | 6,446 | — | |
EPC and others | 127,491 | 52,886 | |
Subtotal | 3,685,207 | 2,917,585 | |
Recurrent Energy Revenues: | |||
Solar and battery storage projects | 343,108 | 618,448 | |
O&M and asset management services | 22,095 | 15,693 | |
Electricity sales and others | 14,894 | 12,809 | |
Subtotal | 380,097 | 646,950 | |
Total net revenues |
Canadian Solar Inc. | ||||||||||||
Unaudited Condensed Consolidated Statements of Operations | ||||||||||||
(In Thousands of | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||
Net revenues | ||||||||||||
Cost of revenues | 1,923,449 | 1,383,280 | 1,943,136 | 3,306,729 | 3,012,594 | |||||||
Gross profit | 440,574 | 318,001 | 371,050 | 758,575 | 551,941 | |||||||
Operating expenses: | ||||||||||||
Selling and distribution | 87,686 | 88,371 | 158,017 | 176,057 | 266,862 | |||||||
General and | 139,571 | 78,648 | 87,920 | 218,219 | 150,730 | |||||||
Research and | 23,137 | 17,307 | 18,050 | 40,444 | 31,330 | |||||||
Other operating income, | (33,943) | (11,929) | (9,054) | (45,872) | (28,613) | |||||||
Total operating expenses | 216,451 | 172,397 | 254,933 | 388,848 | 420,309 | |||||||
Income from operations | 224,123 | 145,604 | 116,117 | 369,727 | 131,632 | |||||||
Other income (expenses): | ||||||||||||
Interest expense | (30,455) | (20,448) | (19,709) | (50,903) | (35,011) | |||||||
Interest income | 9,456 | 7,956 | 4,216 | 17,412 | 8,428 | |||||||
Gain (loss) on change in | (23,775) | 7,601 | (4,869) | (16,174) | (29,607) | |||||||
Foreign exchange gain | 57,532 | (20,860) | 11,333 | 36,672 | 39,195 | |||||||
Investment income, net | 1,955 | 8,380 | 6,984 | 10,335 | 1,460 | |||||||
Total other income | 14,713 | (17,371) | (2,045) | (2,658) | (15,535) | |||||||
Income before income taxes | 238,836 | 128,233 | 114,072 | 367,069 | 116,097 | |||||||
Income tax expense | (46,019) | (28,715) | (27,731) | (74,734) | (22,548) | |||||||
Equity in earnings of affiliates | 4,719 | 7,311 | 2,214 | 12,030 | 3,940 | |||||||
Net income | 197,536 | 106,829 | 88,555 | 304,365 | 97,489 | |||||||
Less: Net income | 27,566 | 23,117 | 14,093 | 50,683 | 13,820 | |||||||
Net income attributable to | ||||||||||||
Earnings per share - basic | $ 2.62 | $ 1.30 | $ 1.16 | $ 3.92 | $ 1.30 | |||||||
Shares used in computation - | 64,912,928 | 64,517,935 | 64,262,556 | 64,716,522 | 64,146,383 | |||||||
Earnings per share - diluted | $ 2.39 | $ 1.19 | $ 1.07 | $ 3.58 | $ 1.21 | |||||||
Shares used in computation - | 71,689,925 | 71,424,749 | 71,103,568 | 71,571,041 | 71,067,215 |
Canadian Solar Inc. | ||||||||||
Unaudited Condensed Consolidated Statement of Comprehensive Income (Loss) | ||||||||||
(In Thousands of | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||
Net Income | ||||||||||
Other comprehensive income | ||||||||||
Foreign currency translation | (68,507) | 23,250 | (126,367) | (45,257) | (118,856) | |||||
Gain (loss) on changes in fair | (1,050) | 339 | 229 | (711) | 229 | |||||
Gain (loss) on interest rate | (67) | (105) | 160 | (172) | 350 | |||||
Share of gain (loss) on changes | 503 | (610) | — | (107) | — | |||||
Comprehensive income (loss) | 128,415 | 129,703 | (37,423) | 258,118 | (20,788) | |||||
Less: comprehensive income | 3,690 | 25,162 | (3,960) | 28,852 | (2,833) | |||||
Comprehensive income (loss) |
Canadian Solar Inc. | |||||||
Unaudited Condensed Consolidated Balance Sheets | |||||||
(In Thousands of | |||||||
June 30, | December 31, | ||||||
2023 | 2022 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | |||||||
Restricted cash | 1,234,008 | 978,116 | |||||
Accounts receivable trade, net | 1,266,608 | 970,950 | |||||
Accounts receivable, unbilled | 65,282 | 57,770 | |||||
Amounts due from related parties | 71,249 | 48,614 | |||||
Inventories | 1,532,149 | 1,524,095 | |||||
Value added tax recoverable | 186,349 | 158,773 | |||||
Advances to suppliers, net | 333,182 | 253,484 | |||||
Derivative assets | 7,637 | 17,516 | |||||
Project assets | 339,916 | 385,964 | |||||
Prepaid expenses and other current assets | 269,228 | 267,941 | |||||
Total current assets | 7,317,033 | 5,644,657 | |||||
Restricted cash | 4,706 | 9,953 | |||||
Property, plant and equipment, net | 2,000,396 | 1,826,643 | |||||
Solar power systems, net | 612,518 | 364,816 | |||||
Deferred tax assets, net | 219,367 | 229,226 | |||||
Advances to suppliers, net | 140,430 | 65,352 | |||||
Investments in affiliates | 159,486 | 115,784 | |||||
Intangible assets, net | 13,942 | 17,530 | |||||
Project assets | 347,012 | 438,529 | |||||
Right-of-use assets | 146,364 | 103,600 | |||||
Amounts due from related parties | 35,423 | 33,489 | |||||
Other non-current assets | 201,973 | 187,549 | |||||
TOTAL ASSETS |
Canadian Solar Inc. | |||||
Unaudited Condensed Consolidated Balance Sheets (Continued) | |||||
(In Thousands of | |||||
June 30, | December 31, | ||||
2023 | 2022 | ||||
Current liabilities: | |||||
Short-term borrowings | |||||
Accounts payable | 770,606 | 805,300 | |||
Short-term notes payable | 1,703,615 | 1,493,399 | |||
Amounts due to related parties | 11,306 | 89 | |||
Other payables | 798,032 | 853,040 | |||
Advances from customers | 313,971 | 334,943 | |||
Derivative liabilities | 18,113 | 25,359 | |||
Operating lease liabilities | 10,693 | 9,810 | |||
Other current liabilities | 477,091 | 293,012 | |||
Total current liabilities | 6,002,482 | 5,258,768 | |||
Long-term borrowings | 1,014,154 | 813,406 | |||
Convertible notes | 226,695 | 225,977 | |||
Liability for uncertain tax positions | 5,730 | 5,730 | |||
Deferred tax liabilities | 68,457 | 66,630 | |||
Loss contingency accruals | 7,150 | 5,000 | |||
Operating lease liabilities | 75,707 | 25,714 | |||
Other non-current liabilities | 357,001 | 329,209 | |||
TOTAL LIABILITIES | 7,757,376 | 6,730,434 | |||
Equity: | |||||
Common shares | 835,543 | 835,543 | |||
Additional paid-in capital | 241,557 | 1,127 | |||
Retained earnings | 1,529,202 | 1,275,520 | |||
Accumulated other comprehensive loss | (158,782) | (170,551) | |||
Total Canadian Solar Inc. shareholders' | 2,447,520 | 1,941,639 | |||
Non-controlling interests | 993,754 | 365,055 | |||
TOTAL EQUITY | 3,441,274 | 2,306,694 | |||
TOTAL LIABILITIES AND EQUITY |
Canadian Solar Inc. | ||||||||||
Unaudited Condensed Statements of Cash Flows | ||||||||||
(In Thousands of | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||
Operating Activities: | ||||||||||
Net income | ||||||||||
Adjustments to reconcile net | 190,634 | 67,738 | 57,852 | 258,372 | 173,944 | |||||
Changes in operating assets | (98,611) | (127,395) | 146,857 | (226,006) | 181,130 | |||||
Net cash provided by operating | 289,559 | 47,172 | 293,264 | 336,731 | 452,563 | |||||
Investing Activities: | ||||||||||
Purchase of property, plant and | (283,065) | (233,032) | (147,629) | (516,097) | (235,629) | |||||
Purchase of solar power | (36,329) | (109,866) | — | (146,195) | (101) | |||||
Other investing activities | (17,927) | (11,083) | (8,056) | (29,010) | (10,825) | |||||
Net cash used in investing | (337,321) | (353,981) | (155,685) | (691,302) | (246,555) | |||||
Financing Activities: | ||||||||||
Net proceeds from subsidiary's | 803,645 | — | — | 803,645 | — | |||||
Other financing activities | 547,492 | 379,749 | 212,743 | 927,241 | 440,354 | |||||
Net cash provided by financing | 1,351,137 | 379,749 | 212,743 | 1,730,886 | 440,354 | |||||
Effect of exchange rate changes | (128,769) | 33,090 | (95,453) | (95,679) | (132,290) | |||||
Net increase in cash, cash | 1,174,606 | 106,030 | 254,869 | 1,280,636 | 514,072 | |||||
Cash, cash equivalents and | ||||||||||
Cash, cash equivalents and |
View original content:https://www.prnewswire.com/news-releases/canadian-solar-reports-second-quarter-2023-results-301906590.html
SOURCE Canadian Solar Inc.