Canadian Solar Financial Results Q1 FY21 Out; 32% YoY Rise in Revenue

Guelph-headquartered solar PV modules manufacturer Canadian Solar Inc. yesterday announced its financial results for the quarter ended March 31, 2021, reporting a 32% YoY increase in revenue and a net income of $23 million.

In Q1 2021, the company’s solar module shipments were 3.1 GW, compared to guidance of 3.0 GW to 3.2 GW. Net revenue grew by 32% yoy and 5% qoq to $1,089 million. The sequential increase was driven by higher project sales in Japan and the United States, a higher module average selling price, which was partially offset by lower module shipments recognised as revenues.

Gross profit in the first quarter of 2021 was $195 million, up 38% qoq but down 13% yoy. Gross margin in the first quarter of 2021 was 17.9%, compared to guidance of 16% to 18%, and 13.6% in the fourth quarter of 2020. The sequential gross margin expansion was mainly driven by an increased contribution of high margin project sales and higher module ASP, which was partially offset by higher manufacturing costs.

Further, 1.2 GWh of battery storage projects remained under construction, while the total battery storage project development pipeline nearly doubled to 17 GWh. The company ensured strategic partnership and investment in habitat energy to strengthen battery storage capabilities. The carve-out IPO of CSI Solar subsidiary remains on track.

Dr. Shawn Qu, Chairman and CEO, siad, “First quarter 2021 revenue and gross margin came in at the high-end of our guidance, as our team remained focused on achieving financial and business improvements despite the challenging market conditions. We nearly doubled our total storage project development pipeline and expect this positive momentum to continue.”

Yan Zhuang, President of Canadian Solar’s CSI Solar subsidiary, said, “Underlying demand for solar energy remains strong driven by ambitious public and private sector targets, yet we are seeing increasing price elasticity of demand and the prospect that certain utility scale projects may be delayed. Meanwhile, we continue to focus on developing our technology differentiation, enhancing our product offering through high value-add system solutions, and working closely with our customers and partners.”

Among recent announcements made by the company, news of its partnership with Habitat Energy, a market leader in power trading and asset optimisation services, for battery storage assets, broke a few days back. Additionally, last month, the company revealed that it was beginning to mass produce high-power, high-efficiency modules with power output of up to 665 W.