Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document Information [Line Items] | |
Entity Central Index Key | 0001375877 |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2019 |
Entity File Number | 001-33107 |
Entity Registrant Name | CANADIAN SOLAR INC. |
Entity Incorporation, State or Country Code | Z4 |
Entity Address, Address Line One | 545 Speedvale Avenue West |
Entity Address, City or Town | Guelph, Ontario |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | N1K 1E6 |
Title of 12(b) Security | Common shares |
Security Exchange Name | NASDAQ |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
No Trading Symbol Flag | true |
Entity Common Stock, Shares Outstanding | 59,371,684 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Document Transition Report | false |
Document Shell Company Report | false |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | 545 Speedvale Avenue West |
Entity Address, City or Town | Guelph, Ontario |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | N1K 1E6 |
Contact Personnel Name | Huifeng Chang |
City Area Code | 1-519 |
Local Phone Number | 837-1881 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 668,770 | $ 444,298 |
Restricted cash | 526,723 | 480,976 |
Accounts receivable trade, net of allowance of $32,733 and $29,545 as of December 31, 2018 and 2019, respectively | 436,815 | 498,231 |
Accounts receivable, unbilled | 15,256 | 38 |
Amounts due from related parties | 31,232 | 16,740 |
Inventories | 554,070 | 262,022 |
Value added tax recoverable | 108,920 | 107,222 |
Advances to suppliers-current, net of allowance of $5,702 and $7,222 as of December 31, 2018 and 2019, respectively | 47,978 | 37,011 |
Derivative assets | 5,547 | 4,761 |
Project assets | 604,083 | 933,563 |
Prepaid expenses and other current assets | 253,542 | 289,459 |
Total current assets | 3,252,936 | 3,074,321 |
Restricted cash | 9,927 | 15,716 |
Property, plant and equipment, net | 1,046,035 | 884,986 |
Solar power systems, net | 52,957 | 54,898 |
Deferred tax assets, net | 153,963 | 121,087 |
Advances to suppliers, net of allowance of $15,224 and $13,059 as of December 31, 2018 and 2019, respectively | 40,897 | 48,908 |
Prepaid land use rights | 60,836 | 65,718 |
Investments in affiliates | 152,828 | 126,095 |
Intangible assets, net | 22,791 | 14,903 |
Goodwill | 1,005 | |
Derivative assets | 3,216 | |
Project assets | 483,051 | 352,200 |
Right-of-use assets | 37,733 | |
Other non-current assets | 153,253 | 129,605 |
TOTAL ASSETS | 5,467,207 | 4,892,658 |
Current liabilities: | ||
Short-term borrowings, including long-term borrowings - current portion | 933,120 | 1,027,927 |
Long-term borrowings on project assets - current | 286,173 | 265,770 |
Accounts payable | 585,601 | 379,462 |
Short-term notes payable | 544,991 | 369,722 |
Amounts due to related parties | 10,077 | 16,847 |
Other payables | 446,454 | 408,013 |
Convertible notes | 127,428 | |
Advances from customers | 134,806 | 39,024 |
Derivative liabilities | 10,481 | 13,698 |
Operating lease liabilities | 18,767 | |
Tax equity liabilities | 158,496 | |
Other current liabilities | 121,527 | 141,970 |
Total current liabilities | 3,091,997 | 2,948,357 |
Accrued warranty costs | 55,878 | 50,605 |
Long-term borrowings | 619,477 | 393,614 |
Amounts due to related parties | 568 | |
Derivative liabilities | 1,841 | |
Liability for uncertain tax positions | 15,353 | 20,128 |
Deferred tax liabilities | 56,463 | 35,698 |
Loss contingency accruals | 28,513 | 24,608 |
Operating lease liabilities | 20,718 | |
Financing liabilities | 76,575 | 77,835 |
Other non-current liabilities | 75,334 | 68,400 |
TOTAL LIABILITIES | 4,042,149 | 3,619,813 |
Commitments and contingencies (Note 21) | ||
Equity: | ||
Common shares - no par value: unlimited authorized shares, 59,180,624 and 59,371,684 shares issued and outstanding at December 31, 2018 and 2019, respectively | 703,806 | 702,931 |
Treasury stock, at cost, nil and 609,516 common shares as of December 31, 2018 and 2019, respectively | (11,845) | |
Additional paid-in capital | 17,179 | 10,675 |
Retained earnings | 793,601 | 622,016 |
Accumulated other comprehensive loss | (109,607) | (110,149) |
Total Canadian Solar Inc. shareholders' equity | 1,393,134 | 1,225,473 |
Non-controlling interests in subsidiaries | 31,924 | 47,372 |
TOTAL EQUITY | 1,425,058 | 1,272,845 |
TOTAL LIABILITIES AND EQUITY | $ 5,467,207 | $ 4,892,658 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable trade, allowance | $ 29,545 | $ 32,733 |
Advances to suppliers - current, allowance | 7,222 | 5,702 |
Advances to suppliers - non-current, allowance | $ 13,059 | $ 15,224 |
Common share, par value (in dollars per share) | $ 0 | $ 0 |
Common shares, shares issued (in shares) | 59,371,684 | 59,180,624 |
Common shares, shares outstanding (in shares) | 59,371,684 | 59,180,624 |
Treasury stock, shares issued (in shares) | 609,516 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net revenues: | |||
-Non-related parties | $ 3,101,113 | $ 3,624,687 | $ 3,221,928 |
-Related parties | 99,470 | 119,825 | 168,465 |
Total net revenues | 3,200,583 | 3,744,512 | 3,390,393 |
Cost of revenues: | |||
-Non-related parties | 2,424,476 | 2,894,611 | 2,641,583 |
-Related parties | 57,610 | 74,819 | 111,212 |
Total cost of revenues | 2,482,086 | 2,969,430 | 2,752,795 |
Gross profit | 718,497 | 775,082 | 637,598 |
Operating expenses: | |||
Selling expenses | 180,326 | 165,402 | 156,032 |
General and administrative expenses | 242,783 | 245,376 | 230,998 |
Research and development expenses | 47,045 | 44,193 | 28,777 |
Other operating income, net | (10,536) | (44,546) | (47,554) |
Total operating expenses, net | 459,618 | 410,425 | 368,253 |
Income from operations | 258,879 | 364,657 | 269,345 |
Other income (expenses): | |||
Interest expense | (81,326) | (106,032) | (117,971) |
Interest income | 12,039 | 11,207 | 10,477 |
Loss on change in fair value of derivatives, net | (22,218) | (19,230) | (272) |
Foreign exchange gain (loss) | 10,370 | 6,529 | (23,449) |
Investment income (loss) | 1,929 | 41,361 | (3,607) |
Other expenses, net | (79,206) | (66,165) | (134,822) |
Income before income taxes and equity in earnings of unconsolidated investees | 179,673 | 298,492 | 134,523 |
Income tax expense | (42,066) | (61,969) | (40,951) |
Equity in earnings (loss) of unconsolidated investees | 28,948 | 5,908 | 9,411 |
Net income | 166,555 | 242,431 | 102,983 |
Less: net income (loss) attributable to non-controlling interests | (5,030) | 5,361 | 3,411 |
Net income attributable to Canadian Solar Inc. | $ 171,585 | $ 237,070 | $ 99,572 |
Earnings per share - basic | $ 2.88 | $ 4.02 | $ 1.71 |
Shares used in computation - basic | 59,633,855 | 58,914,540 | 58,167,004 |
Earnings per share - diluted | $ 2.83 | $ 3.88 | $ 1.69 |
Shares used in computation - diluted | 60,777,696 | 62,291,670 | 61,548,158 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $ 166,555 | $ 242,431 | $ 102,983 |
Other comprehensive income (loss) (net of tax of nil): | |||
Foreign currency translation adjustment | 319 | (50,577) | 39,305 |
Gain (loss) on commodity hedge | 953 | (1,844) | |
Gain (loss) on interest rate swap | (5,847) | 5,141 | (246) |
De-recognition of commodity hedge and interest rate swap | (8,752) | ||
Comprehensive income | 161,027 | 189,196 | 140,198 |
Less: comprehensive income (loss) attributable to non-controlling interests | (11,100) | 8,241 | 2,846 |
Comprehensive income attributable to Canadian Solar Inc. | $ 172,127 | $ 180,955 | $ 137,352 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Common Shares | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (loss) | Earnings Attributable to Canadian Solar Inc. | Non-Controlling Interest | Total |
Balance at Dec. 31, 2016 | $ 701,283 | $ (8,897) | $ 284,109 | $ (91,814) | $ 884,681 | $ 14,709 | $ 899,390 | |
Balance (in shares) at Dec. 31, 2016 | 57,830,149 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net Income (loss) | 99,572 | 99,572 | 3,411 | 102,983 | ||||
Foreign currency translation adjustment | 39,870 | 39,870 | (565) | 39,305 | ||||
Acquisition of subsidiaries | 9,994 | 9,994 | ||||||
Share-based compensation | 9,314 | 9,314 | 9,314 | |||||
Exercise of share options | $ 879 | 879 | 879 | |||||
Exercise of share options (in shares) | 666,536 | |||||||
Fair value change on derivatives | (2,090) | (2,090) | (2,090) | |||||
Balance at Dec. 31, 2017 | $ 702,162 | 417 | 383,681 | (54,034) | 1,032,226 | 27,549 | 1,059,775 | |
Balance (in shares) at Dec. 31, 2017 | 58,496,685 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net Income (loss) | 237,070 | 237,070 | 5,361 | 242,431 | ||||
Foreign currency translation adjustment | (53,457) | (53,457) | 2,880 | (50,577) | ||||
Cumulative-effect adjustment for the adoption of ASU 2014-09 | ASU 2014-09 | 1,265 | 1,265 | 1,265 | |||||
Acquisition of subsidiaries | 7,703 | 7,703 | ||||||
Acquisition non-controlling interest's ownership | (6,591) | (6,591) | ||||||
Share-based compensation | 10,258 | 10,258 | 10,258 | |||||
Exercise of share options | $ 769 | 769 | 769 | |||||
Exercise of share options (in shares) | 683,939 | |||||||
De-recognition of derivatives | (8,752) | (8,752) | (8,752) | |||||
Transfer of equity interest in subsidiaries to non-controlling shareholders | 10,470 | 10,470 | ||||||
Fair value change on derivatives | 6,094 | 6,094 | 6,094 | |||||
Balance at Dec. 31, 2018 | $ 702,931 | 10,675 | 622,016 | (110,149) | 1,225,473 | 47,372 | $ 1,272,845 | |
Balance (in shares) at Dec. 31, 2018 | 59,180,624 | 59,180,624 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net Income (loss) | 171,585 | 171,585 | (5,030) | $ 166,555 | ||||
Foreign currency translation adjustment | 6,389 | 6,389 | (6,070) | 319 | ||||
Acquisition non-controlling interest's ownership | (4,178) | (4,178) | (9,998) | (14,176) | ||||
Repurchase of treasury shares | $ (11,845) | (11,845) | (11,845) | |||||
Repurchase of treasury stock (shares) | (609,516) | 609,516 | ||||||
Share-based compensation | 10,682 | 10,682 | 10,682 | |||||
Exercise of share options | $ 875 | 875 | 875 | |||||
Exercise of share options (in shares) | 800,576 | |||||||
Proceeds non-controlling interests | 5,650 | 5,650 | ||||||
Fair value change on derivatives | (5,847) | (5,847) | (5,847) | |||||
Balance at Dec. 31, 2019 | $ 703,806 | $ (11,845) | $ 17,179 | $ 793,601 | $ (109,607) | $ 1,393,134 | $ 31,924 | $ 1,425,058 |
Balance (in shares) at Dec. 31, 2019 | 59,371,684 | 609,516 | 59,371,684 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) $ in Thousands | 1 Months Ended |
Dec. 31, 2019USD ($)shares | |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | |
Number of shares repurchased | shares | 609,516 |
Total cost of share repurchases | $ | $ 11,845 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities: | |||
Net income | $ 166,555 | $ 242,431 | $ 102,983 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 159,723 | 129,256 | 99,273 |
Loss on disposal of property, plant and equipment | 1,227 | 2,565 | 13,976 |
Gain on disposal of solar power systems | (1,666) | (36,098) | (27,803) |
Gain on disposal of investment in affiliates | (1,928) | (47,102) | |
Impairment loss of property, plant and equipment | 21,866 | 30,968 | 11,626 |
Impairment loss of project assets | 20,194 | 9,016 | 0 |
Impairment of long-lived assets | 0 | 5,738 | 3,686 |
Loss on change in fair value of derivatives, net | 22,218 | 19,230 | 272 |
Equity in loss of unconsolidated investees | (28,948) | (5,908) | (9,411) |
Allowance for doubtful accounts | 1,250 | 2,812 | 7,265 |
Non-cash operating lease expenses | 14,318 | ||
Write-down of inventories | 19,447 | 14,646 | 17,820 |
Share-based compensation | 10,682 | 10,258 | 9,314 |
Unrealized gain (loss) from sales to affiliates | 6,194 | (13,573) | 13,065 |
Changes in operating assets and liabilities: | |||
Accounts receivable trade | 51,670 | (179,607) | 46,337 |
Accounts receivable, unbilled | (15,268) | 1,158 | 2,345 |
Amounts due from related parties | (17,347) | 9,237 | (10,089) |
Inventories | (312,781) | 55,408 | (49,024) |
Value added tax recoverable | (849) | (9,206) | (38,190) |
Advances to suppliers | (27,066) | 29,001 | (15,990) |
Project assets | 28,527 | (30,501) | (128,982) |
Prepaid expenses and other current assets | 33,283 | (2,208) | (49,813) |
Other non-current assets | (24,037) | 9,387 | (23,795) |
Accounts payable | 209,175 | 47,756 | (27,758) |
Short-term notes payable | 185,827 | (173,148) | 243,685 |
Amounts due to related parties | (5,798) | 10,467 | 33,908 |
Other payables | 42,810 | 39,791 | (5,889) |
Advances from customers | 96,115 | (11,225) | (44,985) |
Operating lease liabilities | (12,566) | ||
Other liabilities | (10,851) | (29,691) | (18,774) |
Accrued warranty costs | 4,624 | (3,563) | (6,726) |
Prepaid land use rights | 2,622 | 6,557 | (30,087) |
Goodwill | 1,005 | 5,243 | 1,369 |
Liability for uncertain tax positions | (4,775) | 10,863 | 833 |
Deferred taxes | (12,455) | 37,591 | 84,939 |
Net settlement of derivatives | (27,012) | 28,731 | (1,460) |
Loss contingency accruals | 4,126 | ||
Net cash provided by (used in) operating activities | 600,111 | 216,280 | 203,920 |
Investing activities: | |||
Investments in affiliates | (7,684) | (11,036) | (92,925) |
Return of investment from affiliates | 3,012 | 816 | 4,233 |
Proceeds from disposal of investment in affiliates | 1,649 | 337,773 | |
Purchase of property, plant and equipment and intangible assets | (291,182) | (316,282) | (276,978) |
Purchase of solar power systems | (33,697) | ||
Proceeds from disposal of solar power systems | 103 | 17,800 | 128,768 |
Proceeds from insurance claim | 43,930 | ||
Acquisition of subsidiaries, net of cash paid | (12,561) | ||
Net cash provided by (used in) investing activities | (294,102) | 29,071 | (239,230) |
Financing activities: | |||
Proceeds from short-term borrowings | 1,257,009 | 1,430,708 | 1,646,910 |
Repayment of short-term borrowings | (1,649,721) | (2,368,967) | (2,068,069) |
Proceeds from long-term borrowings | 530,990 | 382,831 | 690,841 |
Acquisition of non-controlling interest | (14,176) | (6,591) | |
Proceeds from non-controlling interests | 11,488 | 10,470 | |
Proceeds from third party financing liabilities | 3,000 | 119,095 | 12,243 |
Proceeds from sales-leaseback arrangement | 9,044 | 35,944 | 61,142 |
Distributions to tax equity investors | (1,120) | (3,013) | (9,582) |
Repayment of finance lease obligation | (42,658) | (64,859) | (30,128) |
Repayment of short-term commercial paper | (138,953) | ||
Payments for repurchase of convertible notes | (127,500) | ||
Proceeds from exercise of stock options | 875 | 769 | 879 |
Payments for repurchase of treasury stock | (11,845) | ||
Net cash provided by (used in) financing activities | (34,614) | (463,613) | 165,283 |
Effect of exchange rate changes | (6,965) | (38,725) | 51,342 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 264,430 | (256,987) | 181,315 |
Cash, cash equivalents and restricted cash at the beginning of the year | 940,990 | 1,190,134 | 1,007,700 |
Less: net decrease in cash, cash equivalents and restricted cash classified within assets held-for-sale | (7,843) | (1,119) | |
Cash, cash equivalents and restricted cash at the end of the year | 1,205,420 | 940,990 | 1,190,134 |
Supplemental disclosure of cash flow information: | |||
Interest paid (net of amounts capitalized) | 85,362 | 103,236 | 113,513 |
Income taxes paid | 40,454 | 32,135 | 45,483 |
Supplemental schedule of non-cash activities: | |||
Reclassification of solar power systems to project assets | 4,782 | ||
Property, plant and equipment costs included in other payables | $ 244,483 | $ 228,970 | $ 153,017 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
Cash and cash equivalents | $ 668,770 | $ 444,298 | ||
Restricted cash - current | 526,723 | 480,976 | ||
Restricted cash - non-current | 9,927 | 15,716 | ||
Total cash and cash equivalents, and restricted cash shown in the statements of cash flows | $ 1,205,420 | $ 940,990 | $ 1,190,134 | $ 1,007,700 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2019 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES Canadian Solar Inc. (“CSI”) was incorporated pursuant to the laws of the Province of Ontario in October 2001, and changed its jurisdiction by continuing under the Canadian federal corporate statute, the Canada Business Corporations Act, or CBCA, effective June 1, 2006. CSI and its subsidiaries (collectively, the “Company”) design, develop, and manufacture solar wafers, cells and solar power products. In recent years, the Company has increased investment in, and management attention on its total solutions business, which primarily consists of solar power project development and sale, EPC and development services, O&M services, operating solar power projects and sales of electricity, and sales of solar system kits. As of December 31, 2019, major subsidiaries of CSI are included in Appendix 1. |
SUMMARY OF PRINCIPAL ACCOUNTING
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (a) Basis of presentation The consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). (b) Basis of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries in which it has a controlling financial interest or variable interest entities (“VIEs”) for which the Company is a primary beneficiary. A controlling financial interest is typically determined when a company holds a majority of the voting equity interest in an entity. All intercompany balances and transactions between the Company and its subsidiaries have been eliminated in consolidation. The Company consolidates VIEs when the Company is the primary beneficiary. VIEs are entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders, as a group, lack one or more of the following characteristics: (a) direct or indirect ability to make decisions; (b) obligation to absorb expected losses; or (c) right to receive expected residual returns. VIEs must be evaluated quantitatively and qualitatively to determine the primary beneficiary, which is the reporting entity that has (a) the power to direct activities of a VIE that most significantly impact the VIEs economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. A VIE can have only one primary beneficiary, but may not have a primary beneficiary if no party meets the criteria described above. When evaluating whether the Company is the primary beneficiary of a VIE, and must therefore consolidate the entity, the Company performs a qualitative analysis that considers the design of the VIE, the nature of its involvement and the variable interests held by other parties. If that evaluation is inconclusive as to which party absorbs a majority of the entity’s expected losses or residual returns, a quantitative analysis is performed to determine the primary beneficiary. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) For the Company's consolidated VIEs, the Company has presented in note 10, to the extent material, the assets of its consolidated VIEs that can only be used to settle specific obligations of the consolidated VIE, and the liabilities of its consolidated VIEs for which creditors do not have recourse to its general assets outside of the consolidated VIE. All intercompany accounts and transactions between the Company and its consolidated VIEs have been eliminated in consolidation. (c) Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant accounting estimates reflected in the Company’s consolidated financial statements include revenue recognition for sales of solar power projects, EPC and development services accounted for under a cost-based input method, allowance for doubtful accounts receivable and advances to suppliers, valuation of inventories and provision for firm purchase commitments, provision for contingent liability, impairment of long-lived assets and project assets, the estimated useful lives of long-lived assets, determination of assets retirement obligation (“ARO”), discount rates used to measure operating lease liabilities, accrual for warranty and the recognition of the benefit from the purchased warranty insurance, fair value estimate of financial instruments including warrants and other types of derivative, accrual for uncertain tax positions, valuation allowances for deferred tax assets, applying acquisition method of accounting to business acquisitions and the grant-date fair value of share-based compensation awards and related forfeiture rates. (d) Cash and cash equivalents and restricted cash Cash and cash equivalents are stated at cost, which approximates fair value. Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal and use, and have original maturities of three months or less when acquired. Restricted cash represents amounts held by banks, which are not available for the Company’s general use, as security for issuance of letters of credit, short-term notes payable and bank borrowings. Upon maturity of the letters of credit, repayment of short-term notes payable or bank borrowings, the deposits are released by the bank and become available for general use by the Company. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (e) Accounts receivable, unbilled Accounts receivable, unbilled represents a contract asset for revenue that has been recognized in advance of billing the customer. The Company uses a cost-based input method to recognize revenue from EPC and development services when all relevant revenue recognition criteria have been met. Under this accounting method, revenue may be recognized in advance of billing the customer, which results in the recording of accounts receivable, unbilled. Once the Company meets the billing criteria under such contract, the rights to consideration becomes unconditional, it bills the customer and reclassifies the unbilled balance to accounts receivable trade. Billing requirements vary by contract, but are generally structured around completion of certain construction milestones. (f) Allowance for doubtful receivables The Company began purchasing insurance from China Export & Credit Insurance Corporation ("Sinosure") since 2009 for certain of its accounts receivable trade in order to reduce its exposure to bad debt loss. The Company provides an allowance for accounts receivable trade using primarily a specific identification methodology. An allowance is recorded based on the likelihood of collection from the specific customer regardless whether such account is covered by Sinosure. At the time the claim is made to Sinosure, the Company records a receivable from Sinosure equal to the expected recovery up to the amount of the specific allowance. The Company had recorded a receivable from Sinosure in prepaid expenses and other current assets of $164 and $166 as of December 31, 2018 and 2019, respectively and a corresponding reduction in bad debt expense. (g) Advances to suppliers The Company makes prepayments to certain suppliers and such amounts are recorded in advances to suppliers in the consolidated balance sheets. Advances to suppliers expected to be utilized within twelve months as of each balance sheet date are recorded as current assets and the portion expected to be utilized after twelve months are classified as non-current assets in the consolidated balance sheets. (h) Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined by the weighted-average method. Cost of inventories consists of direct materials and, where applicable, direct labor costs, tolling costs and those overhead costs that have been incurred in bringing the inventories to their present location and condition. Adjustments are recorded to write down the cost of obsolete and excess inventories to the estimated net realizable value based on historical and forecast demand. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (i) Project assets Project assets consist primarily of capitalized costs relating to solar power projects in various stages of development prior to the intended sale of the solar power projects to a third party. These costs include certain acquisition costs, land costs and costs for developing and constructing a solar power system. Development costs can include legal, consulting, permitting, and other similar costs. Construction costs can include execution of field construction, installation of solar equipment, solar modules and related equipment. Interest costs incurred on debt during the construction phase and all deferred financing costs amortized during the construction phase are also capitalized within project assets. Solar power projects are preliminarily classified as project assets unless the Company has intention not to sell them to third parties. In that case, they will be classified as solar power systems on the balance sheet. During the development phase, solar power projects are accounted for in accordance with the recognition, initial measurement and subsequent measurement subtopics of ASC 970- 360, as they are considered in substance real estates. The costs to construct solar power projects are presented as operating activities or investing activities in the consolidated statement of cash flows, if they are related to project assets or solar power systems, respectively. While the solar power projects are in the development phase, they are generally classified as non-current assets, unless it is anticipated that the sale will occur within one year. Appropriateness of the classification of the solar power projects is assessed based on the circumstances on each balance sheet date. Solar power projects that the Company intends to sell within one year, which meet the criteria of ASC 360, are classified as project assets-current. Solar power projects that the Company intends to hold and operate to generate electricity are still classified as solar power systems. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) The Company reviews project assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company considers a project commercially viable or recoverable if it is anticipated to be sold for a profit once it is either fully developed or fully constructed. The Company considers a partially developed or partially constructed project commercially viable or recoverable if the anticipated selling price is higher than the carrying value of the related project assets. The Company examines a number of factors to determine if the project will be recoverable, the most notable of which include whether there are any changes in environmental, ecological, permitting, market pricing or regulatory conditions that impact the project. Such changes could cause the costs of the project to increase or the selling price of the project to decrease. If a project is not considered recoverable, the Company impairs the respective project assets and adjusts the carrying value to the estimated recoverable amount, with the resulting impairment recorded within operations. Project assets are often held in separate legal entities which are formed for the special purpose of constructing the project assets, which the Company refers to as “project companies”. The Company consolidates project companies as described in note 2 (b) above. The cash paid to the non-controlling interest in connection with disposal of such project companies was recorded as a financing activity in the consolidated statement of cash flows. The Company does not depreciate the project assets. Any revenue generated from a solar power system connected to the grid would be considered incidental revenue and accounted for as a reduction of the capitalized project costs for development. If circumstances change, and the Company will begin to operate the project assets for the purpose of generating income from the sale of electricity, the project assets will be reclassified to solar power systems. (j) Business combination Business combinations are recorded using the acquisition method of accounting and, accordingly, the acquired assets and liabilities are recorded at their fair market value at the date of acquisition. Any excess of acquisition cost over the fair value of the acquired assets and liabilities, including identifiable intangible assets, is recorded as goodwill. The Company charges acquisition related costs that are not part of the purchase price consideration to general and administrative expenses as they are incurred. These costs typically include transaction and integration costs, such as legal, accounting, and other professional fees. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (k) Assets acquisition When the Company acquires other entities, if the assets acquired and liabilities assumed do not constitute a business, the transaction is accounted for as an asset acquisition. Assets are recognized based on the cost, which generally includes the transaction costs of the asset acquisition, and no gain or loss is recognized unless the fair value of noncash assets given as consideration differs from the assets’ carrying amounts on the Company’s books. If the consideration given is not in the form of cash (that is, in the form of noncash assets, liabilities incurred, or equity interests issued), measurement is based on either the cost to the acquiring entity or the fair value of the assets (or net assets) acquired, whichever is more clearly evident and, thus, more reliably measurable. The cost of a group of assets acquired in an asset acquisition is allocated to the individual assets acquired or liabilities assumed based on their relative fair value and does not give rise to goodwill. (l) Property, plant and equipment Property, plant and equipment is recorded at cost less accumulated depreciation. The cost of property, plant and equipment comprises its purchase price and any directly attributable costs, including interest costs capitalized during the period the asset is brought to its working condition and location for its intended use. The Company expenses repair and maintenance costs as incurred. Depreciation is computed on a straight-line basis over the following estimated useful lives: Buildings 20 years Leasehold improvements Over the shorter of the lease term or their estimated useful lives Machinery 5 Furniture, fixtures and equipment 5 years Motor vehicles 5 years Costs incurred in constructing new facilities, including progress payments, capitalized interests and other costs relating to the construction, are capitalized and transferred to property, plant and equipment on completion and depreciation commences from that time. For property, plant and equipment that has been placed into service, but is subsequently idled temporarily, the Company continues to record depreciation expense during the idle period. The Company adjusts the estimated useful life of the idled assets if the estimated useful life has changed. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (m) Solar power systems Solar power systems are comprised of ground-mounted projects and roof top systems that the Company intends to hold for use. The solar power systems are stated at cost less accumulated depreciation. The cost consists primarily of direct costs incurred in various stages of development prior to the commencement of operations. For a self-developed solar power system, the actual cost capitalized is the amount of the expenditure incurred for the application of the feed-in tariff (‘‘FIT’’) or other similar contracts, permits, consents, construction costs, interest costs capitalized, and other costs capitalized. For a solar power system acquired from third parties, the initial costs include the consideration transferred and certain direct acquisition costs. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. When solar power systems is retired, or otherwise disposed of, the cost and accumulated depreciation is removed from the balance sheets and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is recognized using the straight-line method over the estimated useful lives of the solar power systems of 20 (n) Intangible assets Intangible assets primarily represent the technical know-how and computer software purchased from third parties. Intangible assets are recorded at fair value at the time of acquisition less accumulated amortization, if applicable. Amortization is recorded according to the following table on a straight-line basis for all intangible assets: Technical know-how 10 years Computer software 1 (o) Prepaid land use rights Prepaid land use rights, in substance right-of-use assets recorded according to ASC 842 from January 1, 2019, represent amounts paid for the use right of lands located in China (“PRC”) and Japan. Amounts are charged to earnings ratably over the lease periods of 20 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (p) Investments in affiliates The Company uses the equity method of accounting for the investments. The Company records the equity method investments at historical cost and subsequently adjusts the carrying amount each period for share of the earnings or losses of the investee and other adjustments required by the equity method of accounting. Dividends received from the equity method investments are recorded as reductions in the cost of such investments. The amount associated with the share of earnings are considered as return of investment, and the rest received amount are considered as return on investment. Investments are evaluated for impairment when facts or circumstances indicate that the fair value of the investment is less than its carrying value. An impairment is recognized when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial conditions and near term prospects of the affiliates; and (v) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. During the years ended December 31, 2017, 2018 and 2019, the Company recorded $3,686, $5,738 and nil impairment charges on its investments, respectively. (q) Impairment of long-lived assets The Company assesses the recoverability of the carrying value of long-lived assets when an indicator of impairment has been identified. The Company reviews the long-lived assets each reporting period to assess whether impairment indicators are present. For purposes of recognition and measurement of an impairment loss, a long-lived asset or assets is grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For long-lived assets, when impairment indicators are present, the Company compares undiscounted future cash flows, including the eventual disposition of the asset group at market value, to the asset group’s carrying value to determine if the asset group is recoverable. Assessments also consider changes in asset group utilization, including the temporary idling of capacity and the expected timing of placing this capacity back into production. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company will recognize an impairment loss based on the fair value of the assets. The Company recorded impairment charges for long-lived assets of $11,626, $30,968 and $21,866 for the years ended December 31, 2017, 2018 and 2019, respectively. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (r) Interest capitalization The Company capitalizes interest costs as part of the historical costs of acquiring or constructing certain assets during the period of time required to get the assets ready for their intended use or sell the asset to a customer. The Company capitalizes interest costs to the extent that expenditures to acquire, construct, or develop an asset have occurred and interest costs have been incurred. Interest capitalized for property, plant and equipment, or solar power systems is depreciated over the estimated useful life of the related asset, as the qualifying asset is placed into service. The interest capitalized for project assets forms part of the cost of revenues when such project assets are sold and all revenue recognition criteria are met. Interest capitalization ceases once a project is substantially complete or no longer undergoing construction activities to prepare it for its intended use. (s) Assets retirement obligation Certain jurisdictions in which the Company's project assets are located or certain land lease agreements require the removal of the solar power systems when the project is decommissioned. Assets retirement obligation (“ARO”) for the estimated costs of decommissioning associated with long-lived assets at a future date are accounted for in accordance with ASC 410-20, Asset Retirement Obligations (“ASC 410-20”). ASC 410-20 requires an entity to recognize the fair value of a liability for an ARO in the period in which it is incurred and a reasonable estimate of fair value can be made. Upon initial recognition of a liability for an ARO, the asset retirement cost is capitalized by increasing the carrying amount of the related long-lived asset by the same amount. Over time, the liability is accreted to its expected future value, while the capitalized cost is depreciated over the useful life of the related asset. The Company's ARO included in solar power systems were $43 and $26 as of December 31, 2018 and 2019, respectively. (t) Leases Effective January 1, 2019, the Company adopted Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842), as amended ("ASC 842") for its lease arrangements, which were recorded under ASC 840, Leases, before implementation. Upon adoption of ASC 842, the Company elected to use the remaining lease term as of January 1, 2019 in the estimation of the applicable discount rate for leases that were in place at adoption. For the initial measurement of the lease liability for leases commencing after January 1, 2019, the Company use the discount rate as of the commencement date of the lease, incorporating the entire lease term. The Company, as a lessee, has both finance and operating lease arrangements. Right-of-use ("ROU") assets and operating lease liabilities on the consolidated balance sheets include operating lease agreements. Finance lease agreements are recorded in property, plant and equipment, other payables and other non-current liabilities on the consolidated balance sheets. Lease liabilities that become due within one year of the balance sheet date are classified as current liabilities. The Company elected the practical expedient to combine the lease and related non-lease components for all existing leases. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) The Company determines if an arrangement is a lease at inception. Leases are classified as operating or finance leases in accordance with the recognition criteria in ASC 842-20-25. At the commencement date of a lease, the Company determines the classification of the lease based on the relevant factors and presents and records a right-of- use ("ROU") asset and lease liability. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are calculated as the present value of the lease payments not yet paid. Variable lease payments are excluded from the ROU asset and lease liability calculations and are recognized in the period which the obligations for those payments are incurred. Operating lease ROU assets also include any lease prepayments made, initial direct costs and deferred rent if any and exclude lease incentives. As the rate implicit in the Company’s operating leases is not typically readily available, the Company uses an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. Some of the Company’s lease agreements include options to extend or terminate the lease, which are not included in its minimum lease terms unless they are reasonably certain to be exercised. All operating lease expenses are fixed, which are accounted for on a straight-line basis over the lease term and that of finance lease include interest and amortization expenses incurred during the current year. The Company's leases do not contain any material residual value guarantees or material restrictive covenants. Leases with an initial lease term of 12 months or less are not recorded on the consolidated balance sheet. For finance leases, the amortization of the asset is recognized over the shorter of the lease term or useful life of the underlying asset within depreciation and amortization expense and other expenses from managed and franchised properties in consolidated statements of operations. The interest expense related to finance leases, including any variable lease payments, is recognized in interest expense in consolidated statements of operations. The Company assesses ROU assets for impairment quarterly. When events or circumstances indicate the carrying value may not be recoverable, the Company evaluates the net book value of the asset for impairment by comparison to the projected undiscounted future cash flows. If the carrying value of the asset is determined to not be recoverable and is in excess of the estimated fair value, the Company recognizes an impairment charge in asset impairments on its consolidated statements of income. (u) Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but the amount cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. Legal costs incurred in connection with loss contingencies are expensed as incurred. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (v) Income taxes Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net tax loss carry-forwards and credits using the enacted tax rates expected to apply to taxable income in the periods in which the deferred tax liability or asset is expected to be settled or realized. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. Income tax expense includes (i) deferred tax expense, which generally represents the net change in the deferred tax asset or liability balance during the year plus any change in valuation allowances; (ii) current tax expense, which represents the amount of tax payable to or receivable from a taxing authority; and (iii) non-current tax expense, which represents the increases and decreases in amounts related to uncertain tax positions from prior periods and not settled with cash or other tax attributes. The Company only recognizes tax benefits related to uncertain tax positions when such positions are more likely than not of being sustained upon examination. For such positions, the amount of tax benefit that the Company recognizes is the largest amount of tax benefit that is more than fifty percent likely of being sustained upon the ultimate settlement of such uncertain tax position. The Company records penalties and interests associated with the uncertain tax positions as a component of income tax expense. The Company uses the flow-through method to account for investment tax credits earned on qualifying projects placed into service. Under this method the investment tax credits are recognized as a reduction to income tax expense in the year the credit arises. The use of the flow-through method also results in a basis difference from the recognition of a deferred tax liability and an immediate income tax expense for reduced future tax depreciation of the related assets. Such basis differences are accounted for pursuant to the income statement method. (w) Revenue recognition The Company recognizes revenue when it satisfies a performance obligation by transferring a promised good or service to a customer. Solar power products and materials Solar power products, including solar modules, other solar power products, solar system kits and materials related to solar power products are transferred at a point in time when the customer obtains control of the products, which is typically upon shipment or delivery depending on the contract terms. Revenues of solar product sales also include reimbursements received from customers for shipping and handling costs. Sales agreements typically contain the assurance-type customary product warranties but do not contain any post-shipment obligations nor any return or credit provisions, see note 2 (aa) for the Company’s accounting policy for warranty. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) The Company assessed whether it is probable that the Company will collect substantially all of the consideration to which it will be entitled in exchange for the products that will be transferred to the customer. As of December 31, 2018 and 2019, the Company had inventories of $9.0 million and $7.7 million, respectively, relating to sales to customers where revenues were not recognized because the collection of payment was determined to be not probable. The delivered products remain as inventories on consolidated balance sheets, regardless of whether the control has been transferred. If the collection of payment becomes probable in the future, the Company would then recognize revenue, adjust inventories and recognize cost of revenues. O&M services O&M services are transferred over time when customers receive and consume the benefits provided by the Company’s performance under the terms of service arrangements. Revenues from O&M services are recognized overtime based on the work completed to date which does not require re-performances and the costs of O&M services are expensed when incurred. EPC and development services The Company recognizes revenue for sales of EPC and development services over time based on the estimated progress to completion using a cost-based input method. In applying the cost-based input method of revenue recognition, the Company use the actual costs incurred relative to the total estimated costs to determine the Company’s progress towards contract completion and to calculate the corresponding amount of revenue and gross profit to recognize. Cost-based input method of revenue recognition is considered a faithful depiction of the Company’s efforts to satisfy EPC and development services contracts and therefore reflect the transfer of goods or services to a customer under such contracts. Costs incurred towards contract completion may include costs associated with direct materials, labor, subcontractors, and other indirect costs related to contract performance. The cost-based input method of revenue recognition requires the Company to make estimates of net contract revenues and costs to complete the Company’s projects. In making such estimates, significant judgment is required to evaluate assumptions related to the amount of net contract revenues, including the impact of any performance incentives, liquidated damages, and other payments to customers. Significant judgment is also required to evaluate assumptions related to the costs to complete the Company’s projects, including materials, labor, contingencies, and other system costs. If estimated total costs of any contract are greater than the estimated net revenues, of the contract, the Company recognizes the entire estimated loss in the period the loss becomes known. The cumulative effect of revisions to estimates related to net contract revenues and costs to complete contracts, including pen |
ALLOWANCE FOR DOUBTFUL ACCOUNTS
ALLOWANCE FOR DOUBTFUL ACCOUNTS | 12 Months Ended |
Dec. 31, 2019 | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS | 3. ALLOWANCE FOR DOUBTFUL ACCOUNTS Allowance for doubtful accounts are comprised of allowances for accounts receivable trade, advances to suppliers and other receivables. An analysis of allowances for accounts receivable, trade for the years ended December 31, 2017, 2018 and 2019 is as follows: Years Ended December 31, 2017 2018 2019 $ $ $ Beginning of the year 26,119 32,941 32,733 Allowances made (reversed) during the year, net 5,345 869 (1,386) Accounts written-off against allowances (174) (297) (309) Foreign exchange effect 1,651 (780) (1,493) Closing balance 32,941 32,733 29,545 An analysis of allowances for advances to suppliers for the years ended December 31, 2017, 2018 and 2019 is as follows: Years Ended December 31, 2017 2018 2019 $ $ $ Beginning of the year 19,527 18,762 20,926 Allowances made (reversed) during the year, net (833) 2,287 738 Accounts written-off against allowances — — (1,452) Foreign exchange effect 68 (123) 69 Closing balance 18,762 20,926 20,281 An analysis of allowances for other receivables for the years ended December 31, 2017, 2018 and 2019 is as follows: Years Ended December 31, 2017 2018 2019 $ $ $ Beginning of the year 9,251 10,349 9,704 Allowances made (reversed) during the year, net 549 (175) 1,919 Foreign exchange effect 549 (470) (192) Closing balance 10,349 9,704 11,431 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2019 | |
INVENTORIES | |
INVENTORIES | 4. INVENTORIES Inventories consist of the following: At December 31, At December 31, 2018 2019 $ $ Raw materials 47,759 75,722 Work-in-process 46,817 74,105 Finished goods 167,446 404,243 262,022 554,070 In 2017, 2018 and 2019, inventory was written down by $17,820, $14,646 and $19,447, respectively, to reflect the lower of cost and net realizable value. |
PROJECT ASSETS
PROJECT ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
PROJECT ASSETS | |
PROJECT ASSETS | 5. PROJECT ASSETS Project assets consist of the following: At December 31, At December 31, 2018 2019 $ $ Project assets — Acquisition cost 51,635 55,158 Project assets — EPC and other cost 1,234,128 1,031,976 1,285,763 1,087,134 Current portion 933,563 604,083 Non-current portion 352,200 483,051 The Company recorded impairment charges and write-off for project assets of nil, $9,016 and $20,194 for the years ended December 31, 2017, 2018 and 2019, respectively. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2019 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
PROPERTY, PLANT AND EQUIPMENT, NET | 6. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net consist of the following: At December 31, At December 31, 2018 2019 $ $ Buildings 441,975 453,712 Leasehold improvements 13,058 14,225 Machinery 785,874 1,074,460 Furniture, fixtures and equipment 64,135 64,117 Motor vehicles 6,100 6,351 Land 18,810 20,451 1,329,952 1,633,316 Accumulated depreciation (489,927) (598,297) Impairment (30,503) (45,437) Subtotal 809,522 989,582 Construction in process 75,464 56,453 Property, plant and equipment, net 884,986 1,046,035 Depreciation expense of property, plant and equipment was $88,931, $120,834 and $148,034 for the years ended December 31, 2017, 2018 and 2019, respectively. Construction in process primarily represents production facilities under construction and the machinery under installation. |
SOLAR POWER SYSTEMS, NET
SOLAR POWER SYSTEMS, NET | 12 Months Ended |
Dec. 31, 2019 | |
SOLAR POWER SYSTEMS, NET | |
SOLAR POWER SYSTEMS, NET | 7. SOLAR POWER SYSTEMS , NET Solar power systems, net consist of the following: At December 31, At December 31, 2018 2019 $ $ Solar power systems in operation 66,641 70,449 Solar power systems under construction 4,484 4,830 Accumulated depreciation (16,227) (22,322) Solar power systems, net 54,898 52,957 Depreciation expense of solar power systems was $5,683, $3,756 and $6,379 for the years ended December 31, 2017, 2018 and 2019, respectively. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2019 | |
INTANGIBLE ASSETS, NET | |
INTANGIBLE ASSETS, NET | 8. INTANGIBLE ASSETS, NET The following table summarizes the Company’s intangible assets: Gross Carrying Accumulated At December 31, 2019 Amount Amortization Net $ $ $ Technical know-how 1,428 (1,425) 3 Computer software 38,205 (15,417) 22,788 Total intangible assets, net 39,633 (16,842) 22,791 Gross Carrying Accumulated At December 31, 2018 Amount Amortization Net $ $ $ Technical know-how 2,369 (1,458) 911 Computer software 25,882 (11,890) 13,992 Total intangible assets, net 28,251 (13,348) 14,903 Amortization expense for the years ended December 31, 2017, 2018 and 2019 were $4,659, $4,666 and $5,310, respectively. Amortization expenses of the above intangible assets are expected to be approximately $4.4 million, $3.6 million, $3.1 million, $2.5 million and $9.2 million for the years ended December 31, 2020, 2021, 2022, 2023, 2024 and thereafter, respectively. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENT | |
FAIR VALUE MEASUREMENT | 9. FAIR VALUE MEASUREMENT The Company measures at fair value its financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received from the sale of an asset or paid to transfer a liability (i.e., an exit price) on the measurement date in an orderly transaction between market participants. As of December 31, 2018 and 2019, the Company’s financial assets and liabilities were measured at fair value on a recurring basis in periods subsequent to their initial recognition all using the significant other observable inputs, which are Level 2 inputs. 9. FAIR VALUE MEASUREMENT (Continued) Foreign exchange option and forward contracts The Company entered into certain foreign currency derivative contracts to protect against volatility of future cash flows caused by the changes in foreign exchange rates. The foreign currency derivative contracts do not qualify for hedge accounting and, as a result, the changes in fair value of the foreign currency derivative contracts are recognized in the consolidated statements of operations. The Company’s foreign currency derivative instruments relate to foreign exchange options or forward contracts involving major currencies such as Renminbi, Canadian dollars, British pounds, and Japanese yen. Since its derivative instruments are not traded on an exchange, the Company values them using valuation models. Interest rate yield curves and foreign exchange rates are the significant inputs into these valuation models. These inputs are observable in active markets over the terms of the instruments the Company holds, and accordingly, the fair value measurements are classified as Level 2 in the hierarchy. The Company considers the effect of its own credit standing and that of its counterparties in valuations of its derivative financial instruments. Interest rate swap During the year ended December 31, 2016, the Company entered into fixed for floating interest rate swaps with two financial institutions to hedge the interest rate risk on its project debts obtained in the United Kingdom with notional amount totaling GBP78.4 million ($96.8 million), which will expire between 2033 and 2034. The interest rate swaps had been designated as cash flow hedges for accounting purposes. In 2018, the UK projects were sold and the interest rate swaps were assumed by the third party buyer. The interest rate swap contracts of total notional amounts of approximately $399.0 million were entered into for Recurrent projects and designated as cash flow hedges. The interest rate swap contracts were transferred along with the sale of the underlying projects, and the fair value of the remaining swap contract representing a notional amount of approximately $47.4 million entered into for Roserock project loan was recorded as derivative liabilities of $2,170 on the balance sheet as of December 31, 2019. The estimated fair value of interest rate swaps was measured based on observable market data, which are considered Level 2 inputs. 9. FAIR VALUE MEASUREMENT (Continued) The fair value of derivative instruments on the consolidated balance sheets as of December 31, 2018 and 2019 and the effect of derivative instruments on the consolidated statements of operations for the years ended December 31, 2017, 2018 and 2019 are as follows: Fair Value of Derivative Assets At December 31, 2018 At December 31, 2019 Balance Sheet Location Fair Value Balance Sheet Location Fair Value $ $ Foreign exchange forward contracts Derivative assets — current 4,166 Derivative assets — current 5,097 Foreign exchange option contracts Derivative assets — current 1 Derivative assets — current 450 Interest rate swap Derivative assets — current 594 Derivative assets — current — Interest rate swap Derivative assets — non-current 3,216 Derivative assets — non-current — Total 7,977 Total 5,547 Fair Value of Derivative Liabilities At December 31, 2018 At December 31, 2019 Balance Sheet Location Fair Value Balance Sheet Location Fair Value $ $ Foreign exchange forward contracts Derivative liabilities — current 13,480 Derivative liabilities — current 10,127 Foreign exchange option contracts Derivative liabilities — current 218 Derivative liabilities — current 25 Interest rate swap Derivative liabilities — current — Derivative liabilities — current 329 Interest rate swap Derivative liabilities — non-current — Derivative liabilities — non-current 1,841 Total 13,698 Total 12,322 Amount of Gain (Loss) Recognized in Statements Location of of Operations Gain (Loss) Recognized Years Ended December 31 in Statements of Operations 2017 2018 2019 $ $ $ Foreign exchange forward contracts Gain (loss) on change in fair value of derivatives (2,638) (16,414) (20,249) Foreign exchange option contracts Gain (loss) on change in fair value of derivatives — (2,023) (1,022) Warrants Gain (loss) on change in fair value of derivatives 711 — — Interest rate swap Gain (loss) on change in fair value of derivatives 1,655 (793) (947) Total (272) (19,230) (22,218) Other fair value measurements The Company measures certain long-lived assets or long-term investments at fair value on a non-recurring basis in periods after initial measurement in circumstances when the fair value of such assets is below its recorded cost and impairment is required. The Company recorded impairment charges for certain manufacturing asset group of $11,626, $30,968 and $21,866 for the years ended December 31, 2017, 2018 and 2019, respectively. The fair value of these assets was measured based on prices offered by unrelated third-party willing buyers and classified as level 3 fair value measurements as the offering prices are not observable. The impairment was recorded in general and administrative expenses of the MSS segment. 9. FAIR VALUE MEASUREMENT (Continued) The Company also holds financial instruments that are not recorded at fair value in the consolidated balance sheets, but whose fair value is required to be disclosed under the U.S. GAAP. The carrying values of cash and cash equivalents, restricted cash, trade receivables, billed and unbilled, amounts due from related parties, accounts payables, short-term notes payable, amounts due to related parties and short-term borrowings approximate their fair values due to the short-term maturity of these instruments. Long-term borrowings were $393,614 and $619,477 as of December 31, 2018 and 2019, respectively, which approximate their fair values since most of the borrowings contain variable interest rates. The fair value of long-term borrowings was measured based on discounted cash flow approach, which is classified as level 2 as the key inputs can be corroborated with market data. The carrying value of the Company’s outstanding convertible notes was $127.4 million and nil as of December 31, 2018 and 2019, respectively, which approximates the fair value. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2019 | |
VARIABLE INTEREST ENTITIES | |
VARIABLE INTEREST ENTITIES | 10. VARIABLE INTEREST ENTITIES Since 2016, the Company, through its wholly owned subsidiary, CSE Japan Investment Company Limited, entered into silent partnership agreements with various Japan project companies, for the purpose of raising project finance bonds arranged by Goldman Sachs Japan Co., Ltd. Under the silent partnership agreements, the project entities are considered VIEs in which the Company has no equity interests, but is entitled to substantially all of the economic interests of the projects. In addition, the Company has the power to make decisions over the activities that most significantly impact the economic performance of the projects under the asset management agreement signed simultaneously between the project companies and Canadian Solar Project K.K, a subsidiary of the Group. As such, the Company concluded it was the primary beneficiary of the project companies and thus these project companies were accounted for as consolidated VIEs since their establishment. As of December 31, 2018 and 2019, the carrying amounts and classifications of the consolidated VIEs’ major assets and liabilities with immaterial items combined, excluding intercompany balances which are eliminated upon consolidation, included in the Company’s consolidated balance sheet are as follows: At December 31, At December 31, 2018 2019 $ $ Project assets 185,448 197,366 Other assets 21,836 26,102 Total assets 207,284 223,468 Short-term borrowings 9,160 139,708 Long-term borrowings 113,973 — Other liabilities 59,476 66,569 Total liabilities 182,609 206,277 Net income and overall cash flow activities during the year are immaterial to the consolidated financial statements. |
INVESTMENTS IN AFFILIATES
INVESTMENTS IN AFFILIATES | 12 Months Ended |
Dec. 31, 2019 | |
INVESTMENTS IN AFFILIATES | |
INVESTMENTS IN AFFILIATES | 11. INVESTMENTS IN AFFILIATES Investments in affiliates consist of the following: At December 31, 2018 2019 Carrying Ownership Carrying Ownership Value Percentage Value Percentage $ (%) $ (%) RE Roserock Holdings LLC (“Roserock”) 62,767 49 83,034 49 Canadian Solar Infrastructure Fund, Inc. 23,990 14.66 19,162 14.66 Suzhou Financial Leasing Co., Ltd. 14,361 6 16,050 6 Others 24,977 21-49 34,582 15-49 Total 126,095 152,828 Tax equity transactions In 2015, the Company, through its wholly owned subsidiary, Recurrent, entered into the following tax equity transactions: In December 2015, the Company completed the sale of 100% of the class A membership interests of RE Roserock Holdings LLC, the holding company of the Roserock project companies, to Southern. The Company maintains 100% ownership in the class B membership interests of RE Roserock Holdings LLC. Southern paid the Company an initial contribution of $45 million in cash for the class A membership interests in RE Roserock Holdings LLC. Under the LLC agreements, the class A membership interests and class B membership interests will receive 51% and 49%, respectively, of future cash flow distributions, and Southern is entitled to substantially all of the projects’ federal tax benefits. Effective with the sale of the class A membership interests, the Company ceased having controlling financial interests in Roserock, and accounted for the transactions as partial sales of real estates under ASC360-20 when the transactions incurred in 2015. The Company also considered that it would continue to exercise significant influences over its retained interests in and has accounted for these interests pursuant to the equity method of accounting. Under this method, the Company recognizes its equity in earnings attributable to class B membership interests according to its proportionate share of investees’ operating cash flows. Additionally, the Company amortizes the basis difference between the cost of investment and its proportionate share of the investees’ net assets over the estimated lives of the related assets. 11. INVESTMENTS IN AFFILIATES (Continued) In December 2018, the Company wrote down the class B membership interests in Roserock project to its anticipated resell value by $5.0 million. Other investments On September 8, 2015, SZSP established an entity, Suzhou Financial Leasing Co., Ltd., for cash consideration of $13,860, in which the Company holds 6% voting interests. One of five board members is designated by SZSP and, as such SZSP is considered having significant influence over the investee and the equity method is used in this investment. On October 26, 2017, Canadian Solar Infrastructure Fund, Inc. ("CSIF") priced its initial public offering. As of December 31, 2018 and 2019, the Company owned 14.66% of total units of CSIF. One out of the three members of the board of directors of CSIF represents the Company. The quorum for a board resolution of CSIF is a majority of the members of the board of directors, and the adoption of a resolution requires a majority of the votes presents. In September 2018, the Company made full impairment charge of $0.7 million on investment in eNow, Inc., in which the Company holds 10% voting interests, due to deterioration of the investee’s financial position. Equity in earnings of unconsolidated investees were $9,411, $5,908 and $28,948 for the years ended December 31, 2017, 2018 and 2019, respectively. |
LEASE
LEASE | 12 Months Ended |
Dec. 31, 2019 | |
LEASE | |
LEASE | 12 . LEASE The Company leases office space, office equipment, vehicles, spaces for solar power plants construction, and manufacturing facilities in various regions where the Company operates. Leased assets mainly locate in China, United States, Japan, German, and Italy. The leases considered as ROU assets have various terms of up to twenty years. The Company also has certain leases with terms of 12 months or less, which are not recorded on the balance sheet. The components of lease expenses were as follows: Year ended December 31, 2019 $ Finance lease cost: Amortization of right-of-use assets 18,900 Interest on lease liabilities 3,213 Operating fixed lease cost 17,619 Short-term lease cost 8,920 Total lease cost 45,916 The operating lease expenses were $20.9 million and $19.8 million for the years ended December 31, 2018, and 2017, respectively. Finance lease expenses were $24.7 million and $19.1 million for the years ended December 31, 2018 and 2017, respectively. 12 . LEASE (Continued) Other supplemental information related to leases is summarized below: Year ended December 31, 2019 $ Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance lease (3,213) Operating cash flows from operating lease (15,866) Financing cash flows from finance lease (33,614) Right-of-use assets obtained in exchange of new finance lease liabilities in non-cash transaction 7,300 Right-of-use assets obtained in exchange of new operating lease liabilities in non-cash transaction 18,222 At December 31, 2019 Weighted average of remaining operating lease term - finance leases (in years) 1.41 Weighted average of remaining operating lease term - operating leases (in years) 3.03 Weighted average of operating lease discount rate - finance lease 5.82 % Weighted average of operating lease discount rate - operating lease 4.36 % As of December 31, 2019, maturities of operating and finance lease liabilities up to five years were as follows: Operating Lease Payment Finance Lease Payment Total Lease Payment Year Ending December 31: $ $ $ 2020 18,953 27,439 46,392 2021 12,980 13,087 26,066 2022 4,666 604 5,270 2023 2,541 — 2,541 2024 1,077 — 1,077 Thereafter 1,504 — 1,504 Total future minimum lease payments 41,721 41,130 82,851 Less: imputed interest 2,236 2,056 4,292 NPV for future minimum lease payments 39,485 39,074 78,559 Analysis as: Short-term 18,767 25,998 44,765 Long-term 20,718 13,076 33,794 Total lease liabilities 39,485 39,074 78,559 The future minimum lease payments from 2018 Form 20-F as filed in accordance with Leases (Topic 840) were as follows: Operating Lease Payment Finance Lease Payment Total Lease Payment Year Ending December 31: $ $ $ 2019 18,287 40,945 59,232 2020 11,790 23,483 35,273 2021 9,379 11,842 21,221 2022 2,485 556 3,041 2023 838 — 838 Thereafter 7,743 — 7,743 Total future minimum lease payments 50,522 76,826 127,348 Less: imputed interest 5,024 5,024 NPV for future minimum lease payments 71,802 71,802 |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2019 | |
BORROWINGS | |
BORROWINGS | 13 . BORROWINGS At December 31, At December 31, 2018 2019 Analysis as: Short-term borrowings 856,876 819,031 Long-term borrowings, current portion 171,051 114,089 Subtotal for short-term borrowings 1,027,927 933,120 Long-term borrowings on project assets — current (1) 265,770 286,173 Long-term borrowings 393,614 619,477 Total 1,687,311 1,838,770 (1) Certain long-term borrowings were classified as current liabilities because these borrowings are associated with certain solar power projects that are expected to be sold within one year. As of December 31, 2019, the Company had contractual credit facilities of $2,331,226 and $579,545 was available for draw down upon demand. In addition, as of December 31, 2019, the Company also had non-binding credit facilities of $513,566. As of December 31, 2019, short-term borrowings of $708,787, long-term borrowings on project assets – current of $283,409 and long-term borrowings of $513,622 were secured by property, plant and equipment with carrying amounts of $192,103, inventories of $55,955, prepaid land use rights of $28,763, restricted cash of $138,950, accounts receivable of $226,938, equity interest of $373,751 and project assets and solar power systems of $579,695. Long term borrowings newly obtained during the year ended December 31, 2019 were as follows: On January 31, 2019, Canadian Solar Japan K.K. entered into a financing agreement with Mizuho Bank, Ltd, denominated in JPY, which agreed to provide revolving long-term working capital financing of approximately $8,476. The total outstanding borrowings under this agreement equaled $8,476 at December 31, 2019. The loan is secured by inventory and accounts receivable. The agreement does not contain any financial covenants or restrictions. On January 25, 2019, CSI Cells (Yancheng) Co., Ltd. entered into a financing agreement, denominated in RMB, with a Chinese financial institution, which agreed to provide long-term Capex financing of $129,010 in Jiangsu Province. The outstanding borrowing under this agreement was $40,136 at December 31, 2019, which requires repayment in 2021 and 2022. The loan is secured by prepaid land use rights and guaranteed by Chinese Subsidiary of CSI. The agreement does not contain any financial covenants or restrictions. On March 18, 2019, Canadian Solar Projects K.K. entered into a financing agreement, denominated in JPY, with a Japanese financial institution, which agreed to provide revolving long-term working capital financing of $49,290 for Solar power project development in Japan. The outstanding borrowing under this agreement was $11,881 at December 31, 2019, which requires repayment in 2022. The loan is unsecured and guaranteed by CSI. The agreement does not contain any financial covenants or restrictions. 13. BORROWINGS (Continued) On May 8, 2019, CSI entered into a financing agreement, denominated in USD, with Credit Suisse, which agreed to provide revolving long-term working capital financing of $50,000 for Solar power project development worldwide. The outstanding borrowing under this agreement was $50,000 at December 31, 2019, which requires repayment in 2021. The loan is secured by equity and guaranteed by SEA subsidiaries of CSI. As of December 31, 2019, the Company met all the requirements of financial covenants. On June 25, 2019, CSI Cells Co., Ltd. entered into a financing agreement, denominated in RMB, with a Chinese financial institution, which agreed to provide long-term Capex financing of $43,003 in Jiangsu Province. The outstanding borrowing under this agreement was $34,188 at December 31, 2019, which requires repayment in 2024. The loan is secured by property, plant and equipment and guaranteed by Chinese Subsidiary of CSI. The agreement does not contain any financial covenants or restrictions. On June 28, 2019, Europe Clean Energies Asia K.K. entered into a financing agreement, denominated in JPY, with a Japanese financial institution, which agreed to provide project financing of $5,989 for Solar power project development in Japan. The outstanding borrowing under this agreement was $1,503 at December 31, 2019, which requires repayment in 2021. The loan is secured by project assets and guaranteed by CSI. As of December 31, 2019, the Company met all the requirements of financial covenants. On July 15, 2019, Canadian Solar Manufacturing (Thailand) Co.,Ltd. entered into a financing agreement, denominated in USD, with syndicate financial institutions, which agreed to provide long-term Capex financing of $110,000 in Thailand. The outstanding borrowing under this agreement was $91,095 at December 31, 2019, which requires repayment in 2024. The loan is secured by prepaid land use rights and property, plant and equipment and guaranteed by Chinese Subsidiary of CSI. As of December 31, 2019, the Company met all the requirements of financial covenants. On September 6, 2019, Re SH ProCo LLC entered into a financing agreement, denominated in USD, with Syndicate financial institutions, which agreed to provide module supply financing of $123,708 for in US. The outstanding borrowing under this agreement was $123,708 at December 31, 2019, which requires repayment in 2022. The loan is secured by equity and guaranteed by CSI. As of December 31, 2019, the Company met all the requirements of financial covenants. On October 11, 2019, Re SH Mezz Borrower LLC. entered into a financing agreement, denominated in USD, with a Japan financial institution, which agreed to provide module supply financing of $60,000 for in US. The outstanding borrowing under this agreement was $60,000 at December 31, 2019, which requires repayment in 2022. The loan is secured by equity and guaranteed by CSI. As of December 31, 2019, the Company met all the requirements of financial covenants. On October 25, 2019, Canadian Solar Projects K.K. entered into a financing agreement, denominated in JPY, with a Japanese financial institution, which agreed to provide revolving long-term working capital financing of $93,975 for Solar power project development in Japan. The outstanding borrowing under this agreement was $93,975 at December 31, 2019, which requires repayment in 2021. The loan is unsecured and guaranteed by CSI. The agreement does not contain any financial covenants or restrictions. The newly obtained long-term borrowings disclosed above bear effective floating interest rates from 0.95% to 8.28% per annum. 13. BORROWINGS (Continued) Future principal repayments on the long-term borrowings are as follows: 2020 400,262 2021 245,927 2022 276,675 2023 40,679 2024 15,158 Thereafter 41,038 Total 1,019,739 Less: future principal repayment related to long-term borrowings, current portion (400,262) Total long-term portion $ 619,477 Interest expenses Average effective interest rates on borrowings are as follows: At December 31, At December 31, 2018 2019 Short-term borrowings 4.58 % 4.86 % Long-term borrowings on project assets – current 4.61 % 3.65 % Long-term borrowings 3.13 % 5.43 % The Company capitalized interest costs incurred on borrowings obtained to finance construction of solar power projects or property, plant and equipment until the asset is ready for its intended use. The interests incurred during the years ended December 31, 2017, 2018 and 2019 are as follows: Years Ended December 31 2017 2018 2019 $ $ $ Interest capitalized — project assets 13,274 15,462 10,794 Interest capitalized — property, plant and equipment 1,010 1,182 2,620 Interest expense 117,971 106,032 81,326 Total interest incurred 132,255 122,676 94,740 |
SHORT-TERM NOTES PAYABLE
SHORT-TERM NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2019 | |
SHORT-TERM NOTES PAYABLE | |
SHORT-TERM NOTES PAYABLE | 14. SHORT-TERM NOTES PAYABLE The Company enters into arrangements with banks whereby the banks issue notes to the Company’s vendors, which effectively serve to extend the payment date of the associated accounts payable. Vendors may present the notes for payment to a bank, including the bank issuing the note, prior to the stated maturity date, but generally at a discount from the face amount of the note. The Company is generally required to deposit restricted cash balances with the issuing bank, which are utilized to immediately repay the bank upon the banks’ settlement of the notes. Given the purpose of these arrangements is to extend the payment dates of accounts payable, the Company has recorded such amounts as short-term notes payable. As payments by the bank are immediately repaid by the Company's restricted cash balances and other deposits with the same bank, the notes payable does not represent cash borrowings from the bank. As of December 31, 2018 and 2019, short-term notes payable was $369,722 and $544,991, respectively. |
ACCRUED WARRANTY COSTS
ACCRUED WARRANTY COSTS | 12 Months Ended |
Dec. 31, 2019 | |
ACCRUED WARRANTY COSTS | |
ACCRUED WARRANTY COSTS | 15. ACCRUED WARRANTY COSTS The Company’s warranty activity is summarized below: Years Ended December 31, 2017 2018 2019 $ $ $ Beginning balance 61,139 55,659 50,605 Warranty provision 19,793 13,188 28,044 Warranty costs incurred (26,552) (16,732) (23,282) Foreign exchange effect 1,279 (1,510) 511 Ending balance 55,659 50,605 55,878 |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
RESTRICTED NET ASSETS | |
RESTRICTED NET ASSETS | 16. RESTRICTED NET ASSETS As stipulated by the relevant laws and regulations applicable to China’s foreign investment enterprise, the Company’s PRC subsidiaries are required to make appropriations from net income as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) to non-distributable reserves, which include general reserve, enterprise expansion reserve and staff welfare and bonus reserve. The wholly-owned PRC subsidiaries are not required to make appropriations to the enterprise expansion reserve but appropriations to the general reserve are required to be made at not less than 10% of the profit after tax as determined under PRC GAAP. The board of directors determines the staff welfare and bonus reserve. The general reserve is used to offset future losses. The PRC subsidiaries may, upon a resolution passed by the stockholder, convert the general reserve into capital. The staff welfare and bonus reserve is used for the collective welfare of the employee of the subsidiaries. The enterprise expansion reserve is for the expansion of the PRC subsidiaries’ operations and can be converted to capital subject to approval by the relevant authorities. These reserves represent appropriations of the retained earnings determined in accordance with Chinese law. In addition to the general reserve, the Company’s PRC subsidiaries are required to obtain approval from the local PRC government prior to distributing any registered share capital. Accordingly, both the appropriations to general reserve and the registered share capital of the Company’s PRC subsidiaries are considered as restricted net assets amounting to $497.2 million as of December 31, 2019. |
CONVERTIBLE NOTES
CONVERTIBLE NOTES | 12 Months Ended |
Dec. 31, 2019 | |
CONVERTIBLE NOTES | |
CONVERTIBLE NOTES | 17. CONVERTIBLE NOTES On February 18, 2014, the Company issued $130,000 of convertible notes (the "2014 Notes"). The Company granted the initial purchasers a 30-day option to purchase up to an additional $20,000 aggregate principal amount of the 2014 Notes. The option was fully exercised by initial purchasers on the same day. The key terms of the 2014 Notes are described as follows: Maturity date. Interest. Conversion. Redemption. As of December 31, 2018, and 2019, the carrying value of the convertible notes was $127,428 and nil , respectively. The balance at December 31, 2018 and 2019 was net of unamortized issuance costs of $ In February 2019, the company repaid the entire $127.5 million outstanding balance of senior convertible notes. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES | |
INCOME TAXES | 18. INCOME TAXES Income tax expenses The provision for income taxes is comprised of the following: Years Ended December 31, 2017 2018 2019 $ $ $ Income before income taxes Canada (30,524) 10,570 (61,880) United States (33,205) 61,377 8,319 PRC including Hong Kong and Taiwan 173,266 178,050 204,632 Japan 28,164 27,555 29,335 Other 6,233 26,848 28,215 143,934 304,400 208,621 Current tax Canada 346 (1,846) (3,420) United States (54,482) (14,786) (4,803) PRC including Hong Kong and Taiwan (7,383) 27,285 44,622 Japan 31,266 5,325 13,229 Other (8,008) 2,397 7,057 (38,261) 18,375 56,685 Deferred tax Canada (6,464) 12,117 (6,558) United States 67,426 32,696 (2,412) PRC including Hong Kong and Taiwan 23,452 2,653 (5,333) Japan (4,499) (3,381) (2,953) Other (703) (491) 2,637 79,212 43,594 (14,619) Total income tax expense Canada (6,118) 10,271 (9,978) United States 12,944 17,910 (7,215) PRC including Hong Kong and Taiwan 16,069 29,938 39,289 Japan 26,767 1,944 10,276 Other (8,711) 1,906 9,694 40,951 61,969 42,066 The Company mainly operates in Canada, PRC, Japan, Germany, the United States, Hong Kong, Thailand and Vietnam. Canada The Company was incorporated in Ontario, Canada and is subject to both federal and Ontario provincial corporate income taxes at a rate of 26.5% for the years ended December 31, 2017, 2018 and 2019. 18. INCOME TAXES (Continued) Canadian Solar Solutions Inc. was incorporated in Ontario, Canada and is subject to both federal and Ontario provincial corporate income taxes at a rate of 25% for all years ended December 31, 2017, 2018 and 2019. United States Canadian Solar (USA) Inc. was incorporated in Delaware, USA and is subject to federal and state corporate income taxes at a rate of 38.61%, 24.82% and 22.89% for the years ended December 31, 2017, 2018 and 2019, respectively. Recurrent Energy Group Inc. was incorporated in Delaware, USA and is subject to federal and state corporate income taxes at a rate of 38.32%, 25.32% and 27.89% for the years ended December 31, 2017, 2018 and 2019, respectively. Japan Canadian Solar Japan K.K. was incorporated in Japan and is subject to Japanese corporate income taxes at a normal statutory rate of approximately 32.02%, 32.02% and 31.78% for the years ended December 31, 2017, 2018 and 2019, respectively. Germany Canadian Solar EMEA GmbH was incorporated in Munich, Germany and is subject to German corporate income tax at a rate of approximately 33% for the years ended December 31, 2017, 2018 and 2019, respectively. Vietnam Canadian Solar Manufacturing Vietnam Co., Ltd was incorporated in Vietnam on June 25, 2015 and is subject to Vietnamese corporate income taxes at a normal statutory rate of 10%. The Company enjoyed full tax exemption from 2016 to 2019 and will use a reduced statutory rate of 5% from 2020 to 2028. Thailand Canadian Solar Manufacturing (Thailand) Co.,Ltd. was incorporated in Thailand in November 20, 2015 and is subject to Thailand corporate income taxes at a normal statutory rate of 20%. The Company currently has two Board of Investment certificates for full tax exemption which have different effective years. The licenses both started from year 2017, one of which will expire in year 2022 and the other in year 2025. Hong Kong Canadian Solar International Ltd. was incorporated in Hong Kong, China, and is subject to Hong Kong profits tax at a rate of 16.5% for the years ended December 31, 2017, 2018 and 2019, respectively. 18. INCOME TAXES (Continued) PRC The other major operating subsidiaries, including CSI Solartronics (Changshu) Co., Ltd., CSI Solar Technologies Inc., CSI Cells Co., Ltd., Canadian Solar Manufacturing (Luoyang) Inc., CSI Solar Power Group Co., Ltd. (formerly “CSI Solar Power (China) Inc.”) and Canadian Solar Manufacturing (Changshu) Inc., and Suzhou Sanysolar Materials Technology Co., Ltd. were governed by the PRC Enterprise Income Tax Law (“EIT Law”). CSI Solartronics (Changshu) Co., Ltd., CSI Solar Technologies Inc., Canadian Solar Manufacturing (Luoyang) Inc., CSI Solar Power Group Co., Ltd. (formerly “CSI Solar Power (China) Inc.”) are all subject to the enterprise income tax rate of 25% for the years ended December 31, 2017, 2018 and 2019. Certain of the Company's PRC subsidiaries, such as CSI New Energy Holding and CSI Luoyang Manufacturing, were once HNTEs and enjoyed preferential enterprise income tax rates. These benefits have, however, expired. In 2019, Suzhou Sanysolar, CSI Cells, CSI Changshu Manufacturing, Changshu Tegu, Suzhou Gaochuangte New Energy Development, Canadian Solar Sunenergy (Suzhou) and Changshu Tlian enjoyed preferential enterprise income tax rates. Reconciliation between the provision for income tax computed by applying Canadian federal and provincial statutory tax rates to income before income taxes and the actual provision and benefit for income taxes is as follows: Years Ended December 31, 2017 2018 2019 Combined federal and provincial income tax rate 27 % 27 % 27 % Effect of permanent difference (18) % (11) % (1) % Effect of different tax rate on earnings in other jurisdictions (7) % — % 3 % Effect of tax holiday (2) % (1) % (4) % Unrecognized tax provision — % 4 % (3) % Change in valuation allowance (6) % 7 % (3) % Effect of change in tax rate 39 % (3) % (1) % Others (5) % (3) % 2 % 28 % 20 % 20 % The aggregate amount and per share effect of tax holiday are as follows: Years Ended December 31, 2017 2018 2019 (In Thousands of U.S. Dollars, except per share data) The aggregate amount 2,850 3,089 7,956 Per share — basic 0.05 0.05 0.13 Per share — diluted 0.05 0.05 0.13 18. INCOME TAXES (Continued) Deferred tax assets and liabilities The components of the deferred tax assets and liabilities are presented as follows: At December 31, At December 31, 2018 2019 $ $ Deferred tax assets: Accrued warranty costs 9,424 8,326 Bad debt allowance 7,019 10,324 Inventory write-down 1,723 1,128 Future deductible expenses 26,973 20,731 Depreciation and impairment difference of property, plant and equipment and solar power systems 19,647 23,380 Accrued liabilities related to antidumping, countervailing and other duty costs and true-up charges 9,341 496 Deferred tax assets relating to sales of solar power systems 481 8,927 Net operating losses carry-forward 90,536 112,710 Unrealized foreign exchange loss and capital loss 9,471 7,064 Interest limitation 13,520 2,767 Others 13,947 26,415 Total deferred tax assets, gross 202,082 222,268 Valuation allowance (76,522) (70,627) Total deferred tax assets, net of valuation allowance 125,560 151,641 Deferred tax liabilities: Derivative assets 2,697 217 Depreciation difference of property, plant and equipment 1,212 18,789 Deferred profit of projects 4,108 — Insurance recoverable 14,838 15,771 Unrealized foreign exchange gain 4,803 10,984 Others 12,513 8,380 Total deferred tax liabilities 40,171 54,141 Net deferred tax assets 85,389 97,500 Analysis as: Deferred tax assets 121,087 153,963 Deferred tax liabilities (35,698) (56,463) Net deferred tax assets 85,389 97,500 18. INCOME TAXES (Continued) In accordance with the EIT Law, dividends, which arise from profits of foreign invested enterprises in PRC earned after January 1, 2008, are subject to a 10% withholding income tax. Under applicable accounting principles, a deferred tax liability should be recorded for taxable temporary difference attributable to excess of financial reporting basis over tax basis in the investment in a foreign subsidiary. However, a deferred tax liability is not recognized if the basis difference is not expected to reverse in the foreseeable future and is expected to be permanent in duration. As of December 31, 2019, all of the undistributed earnings of approximately $625.9 million attributable to the Company’s PRC subsidiaries and affiliates are considered to be permanently reinvested, and no provision for PRC withholding income tax on dividend has been made thereon accordingly. Upon distribution of those earnings generated after January 1, 2008, in the form of dividends or otherwise, the Company would be subject to the then applicable PRC tax laws and regulations. Distributions of earnings generated before January 1, 2008 are exempt from PRC dividend withholding tax. The amounts of unrecognized deferred tax liabilities for these earnings are in the range of $31.3 million to $62.6 million, as the withholding tax rate of the profit distribution will be 5% or 10% depends on whether the immediate offshore companies can enjoy the preferential withholding tax rate of 5%. Valuation allowance Movement of the valuation allowance is as follows: Years Ended December 31, 2017 2018 2019 $ $ $ Beginning balance 71,469 65,399 76,522 Additions (Reversals) (5,361) 11,051 (6,156) Foreign exchange effect (709) 72 261 Ending balance 65,399 76,522 70,627 As of December 31, 2019, the Company has accumulated net operating losses of $670,541 of which $186,360 will expire between 2020 and 2039, and the remaining can be carried forward and back. The Company considers positive and negative evidences to determine whether some portion or all of the deferred tax assets will not be realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carry-forward periods, the Company’s experience with tax attributes expiring unused and tax planning alternatives. The Company has considered the following possible sources of taxable income when assessing the realization of deferred tax assets: ● Tax planning strategies; ● Future reversals of existing taxable temporary differences; ● Further taxable income exclusive of reversing temporary differences and carry-forwards; 18. INCOME TAXES (Continued) The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible for tax purposes. As a result, the Company has recognized a valuation allowance of $76,522 and $70,627 as at December 31, 2018 and 2019, respectively. Uncertain tax positions The Company makes an assessment of the level of authority for each of its uncertain tax positions (including the potential application of interest and penalties) based on their technical merits, and has measured the unrecognized benefits associated with such tax positions. This liability is recorded as liability for uncertain tax positions in the consolidated balance sheets. In accordance with its policies, the Company accrues and classifies interest and penalties associated with such unrecognized tax benefits as a component of its income tax provision. The amount of interest and penalties accrued as of December 31, 2018 and 2019 was $4,398 and $4,795, respectively. The Company does not anticipate any significant changes to its liability for unrecognized tax positions within the next 12 months. The following table illustrates the movement and balance of the Company’s liability for uncertain tax positions (excluding interest and penalties) for the years ended December 31, 2017, 2018 and 2019, respectively. Years Ended December 31, 2017 2018 2019 $ $ $ Beginning balance 5,684 6,181 15,730 Addition for tax positions related to the current year 1,376 9,806 11 Reductions for tax positions from prior years/Statute of limitations expirations (1,094) — (5,720) Foreign exchange effect 215 (257) 536 Ending balance 6,181 15,730 10,557 The Company is subject to taxation in various jurisdictions where it operates, mainly including Canada, China and the United States. Generally, the Company’s taxation years from 2014 to 2019 are open for reassessment to the Canadian tax authorities. The Company is subject to taxation in the United States and various state jurisdictions. The Company is not currently under examination by the federal or state tax authorities. The Company's income tax returns for 2015 through 2019 remain open to examination by the U.S. tax authorities. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of income taxes has resulted from the computational errors of the taxpayer. The statute of limitations could be extended to five years under special circumstances. For income tax adjustments relating to transfer pricing matters, the statute of limitations is ten years. Therefore, the Company’s Chinese subsidiaries might be subject to reexamination by the Chinese tax authorities on non-transfer pricing matters for taxation years up to 2014 retrospectively, and on transfer pricing matters for taxation years up to 2009 retrospectively. There is no statute of limitations in case of tax evasion in China. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | 19. EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share for the years indicated: Years Ended December 31, 2017 2018 2019 (In Thousands of U.S. Dollars, except share and per share data) Numerator: Net income attributable to Canadian Solar Inc. — basic $ 99,572 $ 237,070 $ 171,585 Dilutive effect of interest expense of convertible notes 4,649 4,683 975 Net income attributable to Canadian Solar Inc. — diluted $ 104,221 $ 241,753 $ 172,560 Denominator: Denominator for basic calculation — weighted average number of common shares — basic 58,167,004 58,914,540 59,633,855 Diluted effects of share number from share options and RSUs 547,821 543,797 794,526 Dilutive effects of share number from convertible notes 2,833,333 2,833,333 349,315 Denominator for diluted calculation — weighted average number of common shares — diluted 61,548,158 62,291,670 60,777,696 Basic earnings per share $ 1.71 $ 4.02 $ 2.88 Diluted earnings per share $ 1.69 $ 3.88 $ 2.83 The following table sets forth anti-dilutive shares excluded from the computation of diluted earnings per share for the years indicated. Years Ended December 31, 2017 2018 2019 Share options and RSUs 372,743 276,618 41,950 |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
RELATED PARTY BALANCES AND TRANSACTIONS | |
RELATED PARTY BALANCES AND TRANSACTIONS | 20. RELATED PARTY BALANCES AND TRANSACTIONS Related party balances The amount due from related parties of $31,232 as of December 31, 2019 consists of (i) trade receivable of $13,930 for development services provided to Roserock, the Company's 49% owned affiliate, (ii) cash funding of $16 to Pilipinas Newton Energy Corp, the Company's 40% owned affiliate, (iii) $17,284 receivable for solar power products sold to ET Solutions South Africa 1 Pty , the Company’s 49% owned affiliate. (iv) $2 receivable for asset management service provided to Canadian Solar Infrastructure Fund, Inc., the Company's 14.66% owned affiliate. No amount was due as of December 31, 2019. The amount due to related parties of $10,077 as of December 31, 2019 consists of (i) a trade payable of $7,884 due to Suzhou iSilver Materials Co., Ltd., the Company’s 15% owned affiliate, for raw materials purchased, (ii) payable for equipment purchase of $2,138 to Suzhou Kzone Equipment Technology Co., Ltd, the Company's 32% owned affiliate obtained in September 2017, and (iii) payable of $55 for material purchased from Luoyang Jiwa New Material Technology Co., Ltd., the Company's 25% owned affiliate. Related party transactions Guarantees and loans Dr. Shawn Qu, fully guaranteed one-year loan facilities from Chinese commercial banks of RMB1,346 million ($206 million), RMB1,270 million ($185 million) and RMB1,420 million ($204 million) in 2017, 2018 and 2019, respectively. Amounts drawn down under the facilities as at December 31, 2017, 2018 and 2019 were $135,225, $155,956 and $82,937 respectively. The Company granted 77,289, 83,805 and 26,691 restricted share units to Dr. Shawn Qu in 2017, 2018 and 2019, respectively, on account of his having guaranteed these loan facilities. Sales and purchase contracts with affiliates In 2019, the Company sold three solar power projects to CSIF, the Company’s 14.66% owned affiliate in Japan, in the amount of JPY 5,889,000 ($53,874) recorded in revenue. In 2018, the Company sold 5 solar power projects to CSIF, the Company's 14.66% owned affiliate in Japan, in the amount of JPY12,276,404 ($109,597) recorded in revenue, and JPY89,238 ($836) recorded in other operating income, respectively. In 2017, The Company sold 13 solar power projects to CSIF, the Company’s 14.66% owned affiliate in Japan, in the amount of JPY18,426,754 ($163,155) recorded in revenue and JPY3,148,648 ($27,879) recorded in other operating income, respectively. In 2017, 2018 and 2019, the Company provided asset management service to CSIF in the amount of JPY303,772 ($2,699), JPY247,341($2,210) and JPY 281,094 ($2,573), respectively. In 2017, 2018 and 2019, the Company provided O&M service to CSIF in the amount of JPY32,119 ($285), JPY122,529 ($1,105) and JPY 223,598 ($2,052), respectively. 20. RELATED PARTY BALANCES AND TRANSACTIONS (Continued) In 2018 and 2019, the Company sold solar power products to ET Solutions South Africa 1 Pty, the Company's 49% owned affiliate in South Africa in the amount of RMB45,407 ($6,859) and ZAR586,832 ($40,970), respectively. In 2017, the Company sold solar power products to Gaochuangte in the amount of RMB11,352 ($1,648), before Gaochuangte became the Company’s 80% owned subsidiary. In 2017, 2018 and 2019, the Company purchased raw materials from Suzhou iSilver Materials Co., Ltd , the Company’s 14.63% owned affiliate in China, in the amount of RMB331,958 ($49,113), RMB512,154 ($74,490) and RMB 350,590 ($50,359), respectively. In 2018 and 2019, the Company purchased equipment from Suzhou Kzone Equipment Technology Co., Ltd, the Company’s 32% owned affiliate in China, in the amount of RMB41,635 ($6,056) and RMB 61,174 ($8,787), respectively. In 2017, the Company incurred costs of RMB44,271 ($6,430), to Gaochuangte for EPC services related to the Company's solar power projects, respectively. These amounts were recorded in project assets. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 21. COMMITMENTS AND CONTINGENCIES a) Capital commitments As of December 31, 2019, the commitments for the purchase of property, plant and equipment were approximately $12 million, and the payment schedule for the commitments is as follow: Year Ending December 31: $ 2020 9,000 2021 3,000 Total 12,000 b) Solar power system commitments As of December 31, 2019, the commitments of the service to be purchased for solar power system were approximately $0.8 million, and the payment schedule for the commitments is as follow: Year Ending December 31: $ 2020 600 2021 200 Total 800 21. COMMITMENTS AND CONTINGENCIES (Continued) c) Contingencies Class Action Lawsuits Following the two subpoenas from the SEC in 2010, six class action lawsuits were filed in the U.S. District Court for the Southern District of New York, or the New York cases, and another class action lawsuit was filed in the U.S. District Court for the Northern District of California, or the California case. The New York cases were consolidated into a single action in December 2010. On January 5, 2011, the California case was dismissed by the plaintiff, who became a member of the lead plaintiff group in the New York action. On March 11, 2011, a Consolidated Complaint was filed with respect to the New York action. The Consolidated Complaint alleges generally that the Company’s financial disclosures during 2009 and early 2010 were false or misleading; asserts claims under Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 thereunder; and names the Company, its chief executive officer and its former chief financial officer as defendants. The Company filed its motion to dismiss in May 2011, which was taken under submission by the Court in July 2011. On March 30, 2012, the Court dismissed the Consolidated Complaint with leave to amend, and the plaintiffs filed an Amended Consolidated Complaint against the same defendants on April 19, 2012. On March 29, 2013, the Court dismissed with prejudice a class action lawsuit filed against the Company and certain named defendants alleging that the Company’s financial disclosures during 2009 and early 2010 were false or misleading and in violation of federal securities law. The court found that the plaintiffs failed to adequately allege a securities law violation and granted the Company’s motion to dismiss all claims against all defendants with prejudice. On December 20, 2013, the United States Court of Appeals for the Second Circuit affirmed the district court’s order dismissing such class action lawsuit. In addition, a similar class action lawsuit was filed against the Company and certain of its executive officers in the Ontario Superior Court of Justice on August 10, 2010. The lawsuit alleges generally that the Company’s financial disclosures during 2009 and 2010 were false or misleading and brings claims under the shareholders’ relief provisions of the CBCA, Part XX III.1 of the Ontario Securities Act as well as claims based on negligent misrepresentation. In December 2010, the Company filed a motion to dismiss the Ontario action on the basis that the Ontario Court has no jurisdiction over the claims and potential claims advanced by the plaintiff. The court dismissed the Company’s motion on August 29, 2011. On March 30, 2012, the Ontario Court of Appeal denied the Company’s appeal with regard to its jurisdictional motion. On November 29, 2012, the Supreme Court of Canada denied the Company’s application for leave to appeal the order of the Ontario Court of Appeal. The plaintiff’s motions for class certification and leave to assert the statutory cause of action under the Ontario Securities Act were served in January 2013 and initially scheduled for argument in the Ontario Superior Court of Justice in June 2013.However, the plaintiff’s motions were adjourned in view of the plaintiff’s decision to seek an order compelling the Company to file additional evidence on the motions. On July 29, 2013 the Court dismissed the plaintiff’s motion to compel evidence. On September 24, 2013 the plaintiff’s application for leave to appeal from the July 29 order was dismissed. In September 2014, the plaintiff obtained an order granting him leave to assert the statutory cause of action under the Ontario Securities Act for certain of his misrepresentation claims. 21. COMMITMENTS AND CONTINGENCIES (Continued) In January 2015, the plaintiff in the class action lawsuit filed against the Company and certain of its executive officers in the Ontario Superior Court of Justice obtained an order for class certification in respect of certain claims for which he had obtained leave in September 2014 to assert the statutory cause of action for misrepresentation under the Ontario Securities Act, for certain negligent misrepresentation claims and for oppression remedy claims advanced under the CBCA. The Court dismissed the Company’s application for leave to appeal and the class action is at the merits stage. The common issues trial is scheduled for November 2020. The Company believes the Ontario action is without merit and the Company is defending it vigorously. Solar 1 In October 2011, a trade action was filed with the U.S. Department of Commerce, or USDOC, and the U.S. International Trade Commission, or USITC, by the U.S. unit of SolarWorld AG and six other U.S. firms, accusing Chinese producers of crystalline silicon photovoltaic cells, or CSPV cells, whether or not incorporated into modules, of selling their products (i.e., CSPV cells or modules incorporating these cells) into the United States at less than fair value, or dumping, and of receiving countervailable subsidies from the Chinese authorities. These firms asked the U.S. government to impose antidumping and countervailing duties on Chinese-origin CSPV cells. The Company was identified as one of a number of Chinese exporting producers of the subject goods to the U.S. market. The Company also has affiliated U.S. operations that import the subject goods from China. From October 2012 to July 2018, the USDOC issued final affirmative determinations with respect to its antidumping and countervailing duty investigations on crystalline silicon photovoltaic, or CSPV, cells, whether or not incorporated into modules, from China, and the first to fifth administrative review results. The results of sixth and seventh administrative reviews are expected to conclude in mid-2020. Between 2017 and 2019, the USDOC and USITC conducted five 21. COMMITMENTS AND CONTINGENCIES (Continued) Solar 2 On December 31, 2013, SolarWorld Industries America, Inc. filed a new trade action with the USDOC and the USITC accusing Chinese producers of certain CSPV modules of dumping their products into the U.S. and of receiving countervailable subsidies from the Chinese authorities. This trade action also alleged that Taiwanese producers of certain CSPV cells and modules dumped their products into the U.S.. Excluded from these new actions were those Chinese-origin solar products covered by the Solar 1 orders described above. The Company was identified as one of a number of Chinese producers exporting the Solar 2 subject goods to the U.S. market. “Chinese CSPV products subject to Solar 2 orders” refer to CSPV products manufactured in mainland China using non-Chinese (e.g., Taiwanese) CSPV cells and imported into the U.S. during the investigation or administrative review periods of Solar 2. “Taiwanese CSPV products subject to Solar 2 orders” refer to CSPV products manufactured outside of mainland China using Taiwanese CSPV cells and imported into the U.S. during the investigation or review periods of Solar 2. From December 2014 to late 2019, the USDOC issued final affirmative determinations and results of the first to fourth administrative reviews with respect to its antidumping and countervailing duty investigation on these CSPV products. The Company will not be subject to the fifth administrative review of the Chinese orders. The USDOC is expected to initiate the fifth administrative review of the Taiwanese orders soon. The USDOC and USITC are currently conducting five-year sunset reviews to determine whether to continue the Solar 2 orders on CSPV products from China and Taiwan. The USDOC is conducting an expedited review, with its final results expected in May 2020. The USITC is currently assessing whether it will conduct an expedited or full sunset review, with a decision due on this issue in spring 2020. The USITC’s sunset review will follow this preliminary decision. In 2019, the Company booked the benefits of antidumping duty and countervailing duty provision reversals of $52.3 million, primarily associated with prior years’ module sales based on the respective updated rates of the administrative reviews carried out by the U.S. Department of Commerce. Section 201 On May 17, 2017, following receipt of a petition from Suniva, Inc., which was later joined by SolarWorld Americas, Inc., the USITC instituted a safeguard investigation to determine whether there were increased imports of CSPV products in such quantities as to be a substantial cause of serious injury, or the threat thereof, to the domestic industry producing like or directly competitive products. On September 22, 2017, the USITC determined that CSPV products are being imported into the United States in such increased quantities as to be a substantial cause of serious injury to the domestic industry. 21. COMMITMENTS AND CONTINGENCIES (Continued) On January 23, 2018, the President of the United States imposed a safeguard measure on imports of CSPV cells. This safeguard measure, which became effective on February 7, 2018, applies to CSPV products imported from all countries, except for certain developing country members of the World Trade Organization. The USITC conducted a midterm review of the safeguard order in early 2020, issuing its monitoring report in February 2020. Additionally, in March 2020, at the request of the Office of the U.S. Trade Representative (USTR), the USITC released a report regarding the probable economic effect on the domestic CSPV cell and module manufacturing industry of modifying the safeguard measure on CSPV products. In addition, on June 13, 2019 and following an abbreviated public comment period, USTR granted an exclusion from the safeguard measure for bifacial solar panels comprising solely bifacial solar cells. On October 9, 2019, USTR determined to withdraw this exclusion, effective October 28, 2019. Invenergy Renewables LLC contested USTR’s withdrawal determination at the CIT and persuaded the Court to enjoin USTR’s withdrawal due to procedural deficiencies. In early 2020, USTR conducted a renewed notice-and-comment process in order to withdraw the exclusion for bifacial solar panels. Subject to the CIT’s further review, the exclusion could be terminated as soon as May 18, 2020. European Antidumping and Anti-Subsidy Investigations On September 6, 2012, following a complaint lodged by EU ProSun, an ad-hoc industry association of EU CSPV module, cell and wafer manufacturers, the European Commission initiated an antidumping investigation concerning EU imports of CSPV modules and key components (i.e., cells and wafers) originating in China. On November 8, 2012, following a complaint lodged by the same parties, the European Commission initiated an anti-subsidy investigation on these same products. On December 6, 2013, the EU imposed definitive antidumping and countervailing measures on imports of CSPV modules and key components (i.e., cells and wafers) originating in or consigned from China. On March 3, 2017, the European Commission extended the antidumping and countervailing measures for 18 months on imports of CSPV modules and key components (i.e., cells and wafers) originating in or consigned from China. On September 16, 2017, the European Commission amended the form of the antidumping and countervailing measures for certain Chinese exporters (but not for Canadian Solar).On March 9, 2018, the antidumping and countervailing measures expired. As a result, since then, the CSPV modules and cells of the Company that originate in, or are consigned from, China, are no longer subject to antidumping or countervailing measures. On February 28, 2014, the Company filed separate actions with the General Court of the EU for annulment of the regulation imposing the definitive antidumping measures and of the regulation imposing the definitive countervailing measures (case T-162/14 and joined cases T-158/14, T-161/14, and T-163/14). The General Court rejected these actions for annulment. On May 8, 2017, the Company appealed the judgements of the General Court before the Court of Justice of the EU (cases C-236/17 and C-237/17). On March 27, 2019, the Court of Justice rejected the appeals. There is no further action with regard to these matters. 21. COMMITMENTS AND CONTINGENCIES (Continued) Canadian Antidumping and Countervailing Duties Expiry Review On June 3, 2015, the Canada Border Services Agency (CBSA) released final determinations regarding the dumping and subsidization of solar modules and laminates originating from China. The CBSA determined that such goods were dumped and subsidized. The CBSA found the Company to be a “cooperative exporter” and, as such, ascertained a low (relative to other Chinese exporters) Canadian Solar-specific subsidies rate of RMB0.014 per Watt. On July 3, 2015 the Canadian International Trade Tribunal (CITT) determined that the Canadian industry was not negatively affected as a result of imported modules but was threatened with such negative impact. As a result of these findings, definitive duties were imposed on imports of Chinese solar modules into Canada starting on July 3, 2015. The CITT is required by law to review such finding every five (5) years) lest the finding expire. The CITT’s finding expires on July 2, 2020. On April 1, 2020, the CITT initiated the preliminary stage of the expiry review regarding the above finding. The Company has responded to the CITT with its intent to participate in such review. The CITT will decide by May 21, 2020 based on responses to be received from domestic and Chinese producers whether the expiry review is warranted. Regardless of the outcome, the Company does not believe there will be a material negative effect upon its results of operations because it has module manufacturing capacity in Ontario and do not rely on Chinese solar modules to serve its Canadian business. Please refer to “Item 8. Financial Information—A. Consolidated Statements and Other Financial Information—Legal and Administrative Proceedings” in the Company’s Form 20-F for detailed information on antidumping and countervailing duties. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 22. SEGMENT INFORMATION The Company uses the management approach to determine operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker (“CODM”) for making decisions, allocating resources and assessing performance. The Company’s CODM has been identified as the Chief Executive Officer of the Company, since he reviews consolidated and segment results when making decisions about allocating resources and assessing performance of the Company. The Company has been operating in two principal businesses since 2016: module and system solutions (“MSS”) and Energy. The MSS business comprises primarily the design, development, manufacture and sale of solar modules, other solar power products and solar system kits. The MSS business also provides engineering, procurement and construction (EPC) and operating and maintenance (O&M) services. The Energy business comprises primarily the development and sale of solar projects, operating solar power projects and the sale of electricity. The module sales from the Company's MSS business to its Energy business are on terms and conditions similar to sales to third parties. The Company’s CODM reviews net revenue and gross profit and does not review balance sheet information by segment. 22. SEGMENT INFORMATION (Continued) The following table summarizes the Company's revenues, gross profit and income from operations generated from each segment: Years Ended December 31, 2019 MSS Energy Elimination Total $ $ $ $ Net revenues 2,582,635 719,445 (101,497) 3,200,583 Cost of revenues 1,934,062 635,716 (87,692) 2,482,086 Gross profit 648,573 83,729 (13,805) 718,497 Income from operations 279,715 (7,031) (13,805) 258,879 Years Ended December 31, 2018 MSS Energy Elimination Total $ $ $ $ Net revenues 2,413,889 1,575,594 (244,971) 3,744,512 Cost of revenues 1,923,131 1,302,779 (256,480) 2,969,430 Gross profit 490,758 272,815 11,509 775,082 Income from operations 141,609 211,539 11,509 364,657 Years Ended December 31, 2017 MSS Energy Elimination Total $ $ $ $ Net revenues 2,850,859 677,470 (137,936) 3,390,393 Cost of revenues 2,390,686 473,453 (111,344) 2,752,795 Gross profit 460,173 204,017 (26,592) 637,598 Income from operations 136,419 159,518 (26,592) 269,345 Income from operations is estimated based on the Company's management accounts as some services are shared by two segments. 22. SEGMENT INFORMATION (Continued) The following table summarizes the Company’s net revenues generated from different geographic locations. The information presented below is based on the location of customers’ headquarters: Years Ended December 31, 2017 2018 2019 $ $ $ Europe and other regions: —Australia 48,069 232,409 313,167 —Germany 94,066 95,514 109,119 —South Africa 21,916 53,739 93,911 —Spain 13,471 58,811 78,228 —Netherlands 51,357 83,475 68,770 —United Kingdom 48,295 101,479 33,158 —Czech 10,822 17,411 17,717 —Others 68,144 55,730 66,389 356,140 698,568 780,459 The Americas: —United States 628,815 999,144 852,231 —Brazil 388,554 339,964 395,303 —Mexico 5,274 50,004 94,446 —Others 85,519 85,545 60,061 1,108,162 1,474,657 1,402,041 Asia: —Japan 476,946 483,041 372,687 —PRC 874,559 620,520 317,077 —Korea 25,244 46,697 72,552 —India 336,468 145,873 70,893 —United Arab Emirates 91,991 104,467 43,311 —Vietnam 462 4,216 39,268 —Thailand 4,167 23,511 12,753 —Others 116,254 142,962 89,542 1,926,091 1,571,287 1,018,083 Total net revenues 3,390,393 3,744,512 3,200,583 22. SEGMENT INFORMATION (Continued) The following table summarizes the Company’s long-lived assets, including property, plant and equipment, non-current project assets, solar power systems, prepaid land use rights and intangible assets at December 31, 2018 and 2019 by geographic region, based on the physical location of the assets: At December 31, At December 31, 2018 2019 $ $ PRC 824,618 835,991 Thailand 168,280 331,931 Japan 233,155 259,197 Australia 61,960 63,143 United States 50,052 60,177 Canada 9,739 14,718 Others 24,899 100,513 Total long-lived assets 1,372,703 1,665,670 The following table summarizes the Company’s revenues generated from each product or service: Years Ended December 31, 2017 2018 2019 $ $ $ MSS: Solar modules and other solar power products 2,551,509 1,930,701 2,055,249 Solar system kits 84,598 93,253 116,449 EPC services — 62,408 223,423 O&M services 6,938 10,767 19,405 Others ( materials) 69,878 71,789 66,612 Energy: Solar power projects 632,256 1,542,906 668,476 Electricity 29,236 8,735 5,866 Others (EPC and development services) 15,978 23,953 45,103 Total net revenues 3,390,393 3,744,512 3,200,583 |
MAJOR CUSTOMERS
MAJOR CUSTOMERS | 12 Months Ended |
Dec. 31, 2019 | |
MAJOR CUSTOMERS | |
MAJOR CUSTOMERS | 23. MAJOR CUSTOMERS Details of customers accounting for 10% or more of total net revenues are as follows: Years Ended December 31, 2017 2018 2019 $ $ $ Company A — 718,341 — 23. MAJOR CUSTOMERS (Continued) The accounts receivable from three customers with the largest receivable balances represents 17%, 5% and 4% of the balance of the account at December 31, 2019, and 12%, 5% and 5% of the balance of the account at December 31, 2018, respectively. The balance from the customer with the largest receivable balance is $59,224 and $74,376 as of December 31, 2018 and 2019, respectively. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
EMPLOYEE BENEFIT PLANS | |
EMPLOYEE BENEFIT PLANS | 24. EMPLOYEE BENEFIT PLANS Employees of the Company located in the PRC are covered by the retirement schemes defined by local practice and regulations, which are essentially defined contribution schemes. The calculation of contributions for eligible employees is based on 16% of the applicable payroll cost in 2019. The expense incurred by the Company to these defined contributions schemes was $9,412, $12,544 and $11,738 for the years ended December 31, 2017, 2018 and 2019, respectively. In addition, in 2019, the Company is required by PRC law to contribute approximately 6-8.5%, 8%, 0.5-0.7% and 0.9-2.5% of applicable salaries for medical insurance benefits, housing funds, unemployment and other statutory benefits, respectively. The PRC government is directly responsible for the payment of the benefits to these employees. The amounts contributed for these benefit schemes were $10,447, $11,211 and $11,409 for the years ended December 31, 2017, 2018 and 2019, respectively. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | 25. SHARE-BASED COMPENSATION In March 2006, the Company adopted a share incentive plan, or the Plan. The purpose of the Plan is to promote the success and enhance the value of the Company by linking the personal interests of the directors, employees and consultants to those of the shareholders and providing the directors, employees and consultants with an incentive for outstanding performance to generate superior returns to the shareholders. The Plan is also intended to motivate, attract and retain the services of the directors, employees and consultants upon whose judgment, interest and effort the successful conduct of the Company’s operations is largely dependent. In September 2010, the shareholders approved an amendment to the Plan to increase the maximum number of common shares which may be issued pursuant to all awards of options, restricted shares and RSUs under the Plan to the sum of (i) 2,330,000 plus (ii) the sum of (a) 1% of the number of outstanding common shares of the Company on the first day of each of 2007, 2008 and 2009 and (b) 2.5% of the number of outstanding common shares of the Company outstanding on the first day of each calendar year after 2009. The Plan will expire on, and no awards may be granted after, May 8, 2021. Under the terms of the Plan, options are generally granted with an exercise price equal to the fair market value of the Company’s ordinary shares and expire ten years from the date of grant. Options to Employees During the year ended December 31, 2019, 103,723 options were exercised with a weighted average exercise price of $8.47. The total intrinsic value of options exercised during the years ended December 31, 2017, 2018 and 2019 was $605, $256 and $1,422, respectively. As of December 31, 2019, there were 120,779 options outstanding with a weighted average exercise price of $10.97 and weighted average remaining contract terms of 1 year. The intrinsic value of outstanding options as of December 31, 2019 was $1,344. 25. SHARE-BASED COMPENSATION (Continued) RSUs to Employees The Company granted 1,033,001, 759,702 and 706,637 RSUs to employees in 2017, 2018 and 2019, respectively. The RSUs entitle the holders to receive the Company’s common shares upon vesting. The RSUs were granted for free and generally vest over periods from one As of December 31, 2019, there was $20,507 of total unrecognized share-based compensation related to unvested RSUs, which is expected to be recognized over a weighted-average period of 2.27 years. A summary of the RSU activity is as follows: Weighted Average Number of Grant-Date Shares Fair Value $ Unvested at January 1, 2019 1,781,271 14.18 Granted 706,637 18.05 Vested (696,853) 15.40 Forfeited (131,288) 15.01 Unvested at December 31, 2019 1,659,767 15.26 The total fair value of RSUs vested during the years ended December 31, 2017, 2018 and 2019 was $12,091, $10,242 and $10,733, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 26. SUBSEQUENT EVENTS In the first quarter of 2020, the Company repurchased additional . The Company repurchased shares in total so far under the share repurchase plan authorized by its Board Directors on December 9, 2019. These repurchased shares have been cancelled and retired. In early February 2020, the World Health Organization declared the outbreak of novel coronavirus, or COVID-19, a Public Health Emergency of International Concern. The outbreak of COVID-19 posed significant challenges to many aspects of the Company’s business. Global commerce generally has been negatively affected due to travel restrictions, disruptions of global shipping and logistics systems, quarantines, and other measures taken by governments. Near-term global economic growth has also been adversely impacted. The Company is taking mitigation strategies to reduce the adverse impact of COVID-19 to its business. The COVID-19 situation remains fluid and the Company will continue to monitor it closely to assess the potential impacts. On March 27, 2020, the U.S. President Donald Trump signed into law the “Coronavirus Aid, Relief and Economic Security (CARES) Act”. The impact of the CARES Act could be material to the Company’s business in the U.S. The Company is in the process of evaluating the impact on its operation as further IRS guidance would be issued to address these complex provisions under the CARES Act. |
Additional Information - Financ
Additional Information - Financial Statement Schedule I | 12 Months Ended |
Dec. 31, 2019 | |
Additional Information - Financial Statement Schedule I | |
Additional Information - Financial Statement Schedule I | Additional Information — Financial Statement Schedule I Canadian Solar Inc. Schedule I has been provided pursuant to the requirements of Rule 12-04(a) and 4-08(e)(3) of Regulation S-X, which require condensed financial information as to financial position, changes in financial position and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented as the restricted net assets of Canadian Solar Inc.’s consolidated and unconsolidated subsidiaries not available for distribution to Canadian Solar Inc. as of December 31, 2019 of $497.2 million, exceeded the 25% threshold. The condensed financial information has been prepared using the same accounting policies as set out in the consolidated financial statements, except that the equity method has been used to account for investments in subsidiaries. FINANCIAL INFORMATION OF PARENT COMPANY BALANCE SHEETS December 31, December 31, 2018 2019 (In Thousands of U.S. Dollars, except share data) ASSETS Current assets: Cash and cash equivalents 9,097 1,362 Restricted cash — 950 Accounts receivable trade, net of allowance for doubtful accounts of $3,462 and $3,379 as of December 31, 2018 and 2019, respectively 11,476 — Amounts due from subsidiaries 279,039 341,557 Prepaid expenses and other current assets 15,222 9,846 Total current assets 314,834 353,715 Investments in subsidiaries 1,154,004 1,383,935 Investments in affiliates — 2,483 Deferred tax assets 28,208 23,657 Other non-current assets 68,068 69,070 TOTAL ASSETS 1,565,114 1,832,860 LIABILITIES AND EQUITY Current liabilities: Convertible notes 127,428 — Accounts payable 3,903 3 Amounts due to related parties 154,765 340,502 Derivative liabilities 3,879 4,713 Other current liabilities 8,255 8,531 Total current liabilities 298,230 353,749 Long-term borrowings — 50,000 Deferred tax liabilities 28,779 22,936 Liability for uncertain tax positions 12,633 13,041 TOTAL LIABILITIES 339,642 439,726 Equity: Common shares — no issued outstanding 702,931 703,806 Treasury stock — (11,845) Additional paid-in capital 10,675 17,179 Retained earnings 622,015 793,601 Accumulated other comprehensive loss (110,149) (109,607) TOTAL EQUITY 1,225,472 1,393,134 TOTAL LIABILITIES AND EQUITY 1,565,114 1,832,860 FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF OPERATIONS Years Ended December 31 2017 2018 2019 (In Thousands of U.S. Dollars) Net revenues 35,011 86,755 4,351 Cost of revenues 29,542 53,926 4,188 Gross profit 5,469 32,829 163 Operating expenses: Selling expenses 2,221 2,518 1,727 General and administrative expenses 18,390 18,970 29,093 Research and development expenses 645 795 462 Other operating loss, net 1,173 77 — Total operating expenses 22,429 22,360 31,282 Income (loss) from operations (16,960) 10,469 (31,119) Other income (expenses): Interest expense (20,078) (9,170) (3,005) Interest income 42,191 32,370 25,272 Loss on change in fair value of derivatives, net (7,134) (2,671) (5,193) Foreign exchange gain (loss) (18,110) 22,255 (11,318) Investment loss (11,944) — (116,879) Other income (expenses), net: (15,075) 42,784 (111,123) Income (loss) before income taxes and equity in earnings (loss) of subsidiaries and unconsolidated investees (32,035) 53,253 (142,242) Income tax (expense) benefit 1,686 (12,133) 5,230 Equity in earnings of subsidiaries 130,048 195,950 308,597 Equity in loss of unconsolidated investees (127) — — Net income 99,572 237,070 171,585 FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Years Ended December 31, 2017 2018 2019 (In Thousands of U.S. Dollars) Net income 99,572 237,070 171,585 Other comprehensive income (loss) (net of tax of nil): Foreign currency translation adjustment 37,780 (56,115) 542 Comprehensive income 137,352 180,955 172,127 FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF CASH FLOWS Years Ended December 31, 2017 2018 2019 (In Thousands of U.S. Dollars) Operating activities: Net income 99,572 237,070 171,585 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 33 21 154 Loss on disposal of subsidiaries 9,559 — 116,879 Impairment loss of investment 3,686 — — Loss on change in fair value of derivatives 7,134 2,671 5,193 Allowance for doubtful accounts 2,666 (212) (83) Equity in earnings of subsidiaries (130,048) (195,950) (308,597) Equity in loss of unconsolidated investees 127 — — Share-based compensation 9,314 10,259 10,682 Changes in operating assets and liabilities: Accounts receivable trade (6,739) (5,089) 11,563 Amounts due from subsidiaries 57,539 (184,755) (43,630) Advances to suppliers (60) 60 — Prepaid expenses and other current assets (5,715) (2,749) 5,449 Other non-current assets 1,016 (149) (1,158) Accounts payable — 3,900 (3,900) Amounts due to related parties 55,399 15,598 183,675 Other liabilities 22,436 (25,958) 1,193 Liability for uncertain tax positions 833 6,008 408 Deferred taxes (6,106) 9,230 (1,292) Net settlement of derivatives (6,358) 21,450 (11,125) Net cash provided by (used in) operating activities 114,288 (108,595) 136,996 Investing activities: Investments in subsidiaries (64,185) (1,051) (36,146) Investments in affiliates — — (2,483) Proceeds from disposal of subsidiaries 61,749 — — Purchase of property, plant and equipment (26) — 1 Funding of loans to subsidiaries (74,458) (94,000) (40,601) Repayment of loans from subsidiaries — 375,635 12,809 Net cash provided by (used in) investing activities (76,920) 280,584 (66,420) Financing activities: Repayment of short-term borrowings (49,000) (151,000) — Proceeds from long-term borrowings — — 50,000 Repayment of convertible notes — — (127,500) Payments for repurchase of treasury stock — — (11,845) Proceeds from exercise of stock options 879 769 875 Net cash used in financing activities (48,121) (150,231) (88,470) Effect of exchange rate changes 6,362 (29,618) 11,110 Net decrease in cash and cash equivalents (4,391) (7,860) (6,784) Cash and cash equivalents at the beginning of the year 21,348 16,957 9,097 Cash and cash equivalents at the end of the year 16,957 9,097 2,313 Supplemental disclosure of cash flow information: Interest paid (net of amounts capitalized) 18,375 10,154 4,644 |
Appendix 1 - Major Subsidiaries
Appendix 1 - Major Subsidiaries of CSI | 12 Months Ended |
Dec. 31, 2019 | |
Appendix 1 - Major Subsidiaries of CSI | |
APPENDIX 1 - Major Subsidiaries of CSI | Appendix 1 Major Subsidiaries of CSI The following table sets forth information concerning CSI’s major subsidiaries: Place and Attributable Date Equity Subsidiary of Incorporation Interest Held Principal Activity CSI Solartronics (Changshu) Co., Ltd. PRC 100 % Developing solar power project November 23, 2001 CSI Solar Technologies Inc. PRC 100 % Sales and marketing of solar products August 8, 2003 CSI New Energy Holding Co., Ltd. PRC 100 % Investment holding January 7, 2005 Canadian Solar Manufacturing (Luoyang) Inc. PRC 100 % Manufacture of solar modules, February 24, 2006 ingots and wafers Canadian Solar Manufacturing (Changshu) Inc. PRC 100 % Production of solar modules August 1, 2006 CSI Cells Co., Ltd. PRC 100 % Manufacture of solar cells August 23, 2006 Canadian Solar (USA) Inc. USA 100 % Sales and marketing of modules June 8, 2007 Canadian Solar Japan K.K. Japan 100 % Sales and marketing of modules June 21, 2009 Canadian Solar Solutions Inc. Canada 100 % Developing solar power project and manufacture of solar modules June 22, 2009 CSI Solar Power Group Co., Ltd. (formerly named/known as "CSI Solar Power (China) Inc.") PRC 100 % Investment holding and trading July 7, 2009 Canadian Solar EMEA GmbH Germany 100 % Sales and marketing of modules August 21, 2009 Canadian Solar (Australia) Pty Limited Australia 100 % Developing solar power project February 3, 2011 Canadian Solar International Limited Hong Kong 100 % Sales and marketing of modules March 25, 2011 Canadian Solar O and M (Ontario) Inc. Canada 100 % Solar farm operating and maintenance service May 10, 2011 Suzhou Sanysolar Materials Technology Co., Ltd. PRC 99.73 % Production of solar module materials August 17, 2011 Canadian Solar South East Asia Pte. Ltd. Singapore 100 % Sales and marketing of modules September 19, 2011 Canadian Solar South Africa (Pty) Ltd South Africa 100 % Sales and marketing of modules June 22, 2012 Canadian Solar Brazil Commerce, Import and Export of Solar Panels Ltd. Brazil 100 % Sales and marketing of solar modules, and provide solar energy solution to customer November 14, 2012 Canadian Solar Construction (USA) LLC USA 100 % Solar farm operating and maintenance service May 20, 2014 Canadian Solar Projects K.K. Japan 100 % Developing solar power project May 20, 2014 CSI&GCL Solar Manufacturing (Yan Cheng) Inc. PRC 100 % Research and developing, manufacture and sales of solar cells, and solar power projects development May 29, 2014 Canadian Solar UK Ltd. United Kingdom 100 % Sales and marketing of modules May 29, 2014 Canadian Solar UK Projects Ltd. United Kingdom 100 % Developing solar power project August 29, 2014 Changshu Tegu New Material Technology Co., Ltd. PRC 100 % EVA solar packaging film research and development, production, and sales September 2, 2014 Changshu Tlian Co., Ltd. PRC 100 % Junction box and connector research, development, production and sales December 26, 2014 Recurrent Energy Group Inc. USA 100 % Developing solar power project January 22, 2015 Recurrent Energy, LLC USA 100 % Developing solar power project March 31, 2015 PT. Canadian Solar Indonesia Indonesia 67 % Production of solar modules February 26, 2015 Canadian Solar Manufacturing Vietnam Co., Ltd. Vietnam 100 % Production of solar modules June 25, 2015 Canadian Solar Energy Private Limited India 100 % Sales and marketing of modules May 06, 2015 Canadian Solar MSS (Australia) Pty Ltd (formerly named/known as “Canadian Solar Australia 1 Pty Ltd. ") Australia 100 % Sales and marketing of modules August 03, 2015 Canadian Solar Energy Holding Company Limited Hong Kong 100 % Project investment, financing, trading of solar modules September 22, 2015 Canadian Solar Energy Singapore Pte. Ltd. Singapore 100 % Development & Ownership of solar PV projects October 29, 2015 Canadian Solar Manufacturing (Thailand) Co.,Ltd. Thailand 99.99992 % Cells and module production November 20, 2015 Canadian Solar Sunenergy (Suzhou) Co., Ltd. PRC 100 % Production of solar modules May 12, 2016 Canadian Solar Sunenergy (Baotou) Co., Ltd. PRC 100 % Production of solar modules, ingots and wafers August 18, 2016 Canadian Solar Middle East DMCC United Arab Emirates 100 % Sales and marketing of modules March 28, 2017 CSI Investment Management (SuZhou) Co., Ltd. PRC 100 % Investment management & assets management May 05, 2017 Suzhou Gaochuangte New Energy Development Co., Ltd. PRC 90 % Design, engineering construction and management of solar power project June 12, 2017 CSI Cells (Yancheng) Co., Ltd. PRC * Production of solar cells May 18, 2017 CSI Modules (DaFeng) Co., Ltd. PRC ** Production of solar modules May 16, 2017 Canadian Solar Construction (Australia) Pty Ltd Australia 100 % Providing engineering, procurement and construction service July 04, 2017 CSUK Energy Systems Construction and Generation JSC Turkey 100 % Construction of power plants generating electricity by utilizing renewable energy sources October 30, 2017 CSI Modules (JiaXing) Co., Ltd. PRC 100 % Production of solar modules November 3, 2017 CSI Wafer (LuoYang) Co., Ltd. PRC 100 % Production of solar cells and wafers November 27, 2017 Canadian Solar Manufacturing Taiwan Co., Ltd. PRC 100 % Production of solar modules December 05, 2017 Canadian Solar Argentina Investment Holding Ltd. Argentina 100 % Developing solar power project January 23, 2018 Changsu Xingu Photovoltaic Material Technology Co., Ltd. PRC 100 % EVA solar packaging film research and development, production and sales March 19, 2018 Canadian Solar New Energy Holding Company Limited Hong Kong 100 % Project investment, financing, trading of solar modules. March 20, 2019 Canadian Solar Energy Holding Singapore Pte. Ltd. Singapore 100 % Development & Ownership of Solar PV Projects April 22, 2019 Canadian Solar SSES (Canada) Inc. Canada 100 % System Solution and Energy Storage Nov 27, 2019 Canadian Solar SSES (UK) Ltd United Kingdom 100 % IP holding December 18, 2019 * ** |
SUMMARY OF PRINCIPAL ACCOUNTI_2
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Basis of presentation | (a) Basis of presentation The consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). |
Basis of consolidation | (b) Basis of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries in which it has a controlling financial interest or variable interest entities (“VIEs”) for which the Company is a primary beneficiary. A controlling financial interest is typically determined when a company holds a majority of the voting equity interest in an entity. All intercompany balances and transactions between the Company and its subsidiaries have been eliminated in consolidation. The Company consolidates VIEs when the Company is the primary beneficiary. VIEs are entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders, as a group, lack one or more of the following characteristics: (a) direct or indirect ability to make decisions; (b) obligation to absorb expected losses; or (c) right to receive expected residual returns. VIEs must be evaluated quantitatively and qualitatively to determine the primary beneficiary, which is the reporting entity that has (a) the power to direct activities of a VIE that most significantly impact the VIEs economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. A VIE can have only one primary beneficiary, but may not have a primary beneficiary if no party meets the criteria described above. When evaluating whether the Company is the primary beneficiary of a VIE, and must therefore consolidate the entity, the Company performs a qualitative analysis that considers the design of the VIE, the nature of its involvement and the variable interests held by other parties. If that evaluation is inconclusive as to which party absorbs a majority of the entity’s expected losses or residual returns, a quantitative analysis is performed to determine the primary beneficiary. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) For the Company's consolidated VIEs, the Company has presented in note 10, to the extent material, the assets of its consolidated VIEs that can only be used to settle specific obligations of the consolidated VIE, and the liabilities of its consolidated VIEs for which creditors do not have recourse to its general assets outside of the consolidated VIE. All intercompany accounts and transactions between the Company and its consolidated VIEs have been eliminated in consolidation. |
Use of estimates | (c) Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant accounting estimates reflected in the Company’s consolidated financial statements include revenue recognition for sales of solar power projects, EPC and development services accounted for under a cost-based input method, allowance for doubtful accounts receivable and advances to suppliers, valuation of inventories and provision for firm purchase commitments, provision for contingent liability, impairment of long-lived assets and project assets, the estimated useful lives of long-lived assets, determination of assets retirement obligation (“ARO”), discount rates used to measure operating lease liabilities, accrual for warranty and the recognition of the benefit from the purchased warranty insurance, fair value estimate of financial instruments including warrants and other types of derivative, accrual for uncertain tax positions, valuation allowances for deferred tax assets, applying acquisition method of accounting to business acquisitions and the grant-date fair value of share-based compensation awards and related forfeiture rates. |
Cash and cash equivalents and restricted cash | (d) Cash and cash equivalents and restricted cash Cash and cash equivalents are stated at cost, which approximates fair value. Cash and cash equivalents consist of cash on hand and demand deposits, which are unrestricted as to withdrawal and use, and have original maturities of three months or less when acquired. Restricted cash represents amounts held by banks, which are not available for the Company’s general use, as security for issuance of letters of credit, short-term notes payable and bank borrowings. Upon maturity of the letters of credit, repayment of short-term notes payable or bank borrowings, the deposits are released by the bank and become available for general use by the Company. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) |
Accounts receivable, unbilled | (e) Accounts receivable, unbilled Accounts receivable, unbilled represents a contract asset for revenue that has been recognized in advance of billing the customer. The Company uses a cost-based input method to recognize revenue from EPC and development services when all relevant revenue recognition criteria have been met. Under this accounting method, revenue may be recognized in advance of billing the customer, which results in the recording of accounts receivable, unbilled. Once the Company meets the billing criteria under such contract, the rights to consideration becomes unconditional, it bills the customer and reclassifies the unbilled balance to accounts receivable trade. Billing requirements vary by contract, but are generally structured around completion of certain construction milestones. |
Allowance for doubtful receivables | (f) Allowance for doubtful receivables The Company began purchasing insurance from China Export & Credit Insurance Corporation ("Sinosure") since 2009 for certain of its accounts receivable trade in order to reduce its exposure to bad debt loss. The Company provides an allowance for accounts receivable trade using primarily a specific identification methodology. An allowance is recorded based on the likelihood of collection from the specific customer regardless whether such account is covered by Sinosure. At the time the claim is made to Sinosure, the Company records a receivable from Sinosure equal to the expected recovery up to the amount of the specific allowance. The Company had recorded a receivable from Sinosure in prepaid expenses and other current assets of $164 and $166 as of December 31, 2018 and 2019, respectively and a corresponding reduction in bad debt expense. |
Advances to suppliers | (g) Advances to suppliers The Company makes prepayments to certain suppliers and such amounts are recorded in advances to suppliers in the consolidated balance sheets. Advances to suppliers expected to be utilized within twelve months as of each balance sheet date are recorded as current assets and the portion expected to be utilized after twelve months are classified as non-current assets in the consolidated balance sheets. |
Inventories | (h) Inventories Inventories are stated at the lower of cost or net realizable value. Cost is determined by the weighted-average method. Cost of inventories consists of direct materials and, where applicable, direct labor costs, tolling costs and those overhead costs that have been incurred in bringing the inventories to their present location and condition. Adjustments are recorded to write down the cost of obsolete and excess inventories to the estimated net realizable value based on historical and forecast demand. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) |
Project assets | (i) Project assets Project assets consist primarily of capitalized costs relating to solar power projects in various stages of development prior to the intended sale of the solar power projects to a third party. These costs include certain acquisition costs, land costs and costs for developing and constructing a solar power system. Development costs can include legal, consulting, permitting, and other similar costs. Construction costs can include execution of field construction, installation of solar equipment, solar modules and related equipment. Interest costs incurred on debt during the construction phase and all deferred financing costs amortized during the construction phase are also capitalized within project assets. Solar power projects are preliminarily classified as project assets unless the Company has intention not to sell them to third parties. In that case, they will be classified as solar power systems on the balance sheet. During the development phase, solar power projects are accounted for in accordance with the recognition, initial measurement and subsequent measurement subtopics of ASC 970- 360, as they are considered in substance real estates. The costs to construct solar power projects are presented as operating activities or investing activities in the consolidated statement of cash flows, if they are related to project assets or solar power systems, respectively. While the solar power projects are in the development phase, they are generally classified as non-current assets, unless it is anticipated that the sale will occur within one year. Appropriateness of the classification of the solar power projects is assessed based on the circumstances on each balance sheet date. Solar power projects that the Company intends to sell within one year, which meet the criteria of ASC 360, are classified as project assets-current. Solar power projects that the Company intends to hold and operate to generate electricity are still classified as solar power systems. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) The Company reviews project assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company considers a project commercially viable or recoverable if it is anticipated to be sold for a profit once it is either fully developed or fully constructed. The Company considers a partially developed or partially constructed project commercially viable or recoverable if the anticipated selling price is higher than the carrying value of the related project assets. The Company examines a number of factors to determine if the project will be recoverable, the most notable of which include whether there are any changes in environmental, ecological, permitting, market pricing or regulatory conditions that impact the project. Such changes could cause the costs of the project to increase or the selling price of the project to decrease. If a project is not considered recoverable, the Company impairs the respective project assets and adjusts the carrying value to the estimated recoverable amount, with the resulting impairment recorded within operations. Project assets are often held in separate legal entities which are formed for the special purpose of constructing the project assets, which the Company refers to as “project companies”. The Company consolidates project companies as described in note 2 (b) above. The cash paid to the non-controlling interest in connection with disposal of such project companies was recorded as a financing activity in the consolidated statement of cash flows. The Company does not depreciate the project assets. Any revenue generated from a solar power system connected to the grid would be considered incidental revenue and accounted for as a reduction of the capitalized project costs for development. If circumstances change, and the Company will begin to operate the project assets for the purpose of generating income from the sale of electricity, the project assets will be reclassified to solar power systems. |
Business combination | (j) Business combination Business combinations are recorded using the acquisition method of accounting and, accordingly, the acquired assets and liabilities are recorded at their fair market value at the date of acquisition. Any excess of acquisition cost over the fair value of the acquired assets and liabilities, including identifiable intangible assets, is recorded as goodwill. The Company charges acquisition related costs that are not part of the purchase price consideration to general and administrative expenses as they are incurred. These costs typically include transaction and integration costs, such as legal, accounting, and other professional fees. |
Assets acquisition | (k) Assets acquisition When the Company acquires other entities, if the assets acquired and liabilities assumed do not constitute a business, the transaction is accounted for as an asset acquisition. Assets are recognized based on the cost, which generally includes the transaction costs of the asset acquisition, and no gain or loss is recognized unless the fair value of noncash assets given as consideration differs from the assets’ carrying amounts on the Company’s books. If the consideration given is not in the form of cash (that is, in the form of noncash assets, liabilities incurred, or equity interests issued), measurement is based on either the cost to the acquiring entity or the fair value of the assets (or net assets) acquired, whichever is more clearly evident and, thus, more reliably measurable. The cost of a group of assets acquired in an asset acquisition is allocated to the individual assets acquired or liabilities assumed based on their relative fair value and does not give rise to goodwill. |
Property, plant and equipment | (l) Property, plant and equipment Property, plant and equipment is recorded at cost less accumulated depreciation. The cost of property, plant and equipment comprises its purchase price and any directly attributable costs, including interest costs capitalized during the period the asset is brought to its working condition and location for its intended use. The Company expenses repair and maintenance costs as incurred. Depreciation is computed on a straight-line basis over the following estimated useful lives: Buildings 20 years Leasehold improvements Over the shorter of the lease term or their estimated useful lives Machinery 5 Furniture, fixtures and equipment 5 years Motor vehicles 5 years Costs incurred in constructing new facilities, including progress payments, capitalized interests and other costs relating to the construction, are capitalized and transferred to property, plant and equipment on completion and depreciation commences from that time. For property, plant and equipment that has been placed into service, but is subsequently idled temporarily, the Company continues to record depreciation expense during the idle period. The Company adjusts the estimated useful life of the idled assets if the estimated useful life has changed. |
Solar power systems | (m) Solar power systems Solar power systems are comprised of ground-mounted projects and roof top systems that the Company intends to hold for use. The solar power systems are stated at cost less accumulated depreciation. The cost consists primarily of direct costs incurred in various stages of development prior to the commencement of operations. For a self-developed solar power system, the actual cost capitalized is the amount of the expenditure incurred for the application of the feed-in tariff (‘‘FIT’’) or other similar contracts, permits, consents, construction costs, interest costs capitalized, and other costs capitalized. For a solar power system acquired from third parties, the initial costs include the consideration transferred and certain direct acquisition costs. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. When solar power systems is retired, or otherwise disposed of, the cost and accumulated depreciation is removed from the balance sheets and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is recognized using the straight-line method over the estimated useful lives of the solar power systems of 20 |
Intangible assets | (n) Intangible assets Intangible assets primarily represent the technical know-how and computer software purchased from third parties. Intangible assets are recorded at fair value at the time of acquisition less accumulated amortization, if applicable. Amortization is recorded according to the following table on a straight-line basis for all intangible assets: Technical know-how 10 years Computer software 1 |
Prepaid land use rights | (o) Prepaid land use rights Prepaid land use rights, in substance right-of-use assets recorded according to ASC 842 from January 1, 2019, represent amounts paid for the use right of lands located in China (“PRC”) and Japan. Amounts are charged to earnings ratably over the lease periods of 20 |
Investments in affiliates | (p) Investments in affiliates The Company uses the equity method of accounting for the investments. The Company records the equity method investments at historical cost and subsequently adjusts the carrying amount each period for share of the earnings or losses of the investee and other adjustments required by the equity method of accounting. Dividends received from the equity method investments are recorded as reductions in the cost of such investments. The amount associated with the share of earnings are considered as return of investment, and the rest received amount are considered as return on investment. Investments are evaluated for impairment when facts or circumstances indicate that the fair value of the investment is less than its carrying value. An impairment is recognized when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature of the investment; (ii) cause and duration of the impairment; (iii) extent to which fair value is less than cost; (iv) financial conditions and near term prospects of the affiliates; and (v) ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. During the years ended December 31, 2017, 2018 and 2019, the Company recorded $3,686, $5,738 and nil impairment charges on its investments, respectively. |
Impairment of long-lived assets | (q) Impairment of long-lived assets The Company assesses the recoverability of the carrying value of long-lived assets when an indicator of impairment has been identified. The Company reviews the long-lived assets each reporting period to assess whether impairment indicators are present. For purposes of recognition and measurement of an impairment loss, a long-lived asset or assets is grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. For long-lived assets, when impairment indicators are present, the Company compares undiscounted future cash flows, including the eventual disposition of the asset group at market value, to the asset group’s carrying value to determine if the asset group is recoverable. Assessments also consider changes in asset group utilization, including the temporary idling of capacity and the expected timing of placing this capacity back into production. If the sum of the expected undiscounted cash flows is less than the carrying amount of the assets, the Company will recognize an impairment loss based on the fair value of the assets. The Company recorded impairment charges for long-lived assets of $11,626, $30,968 and $21,866 for the years ended December 31, 2017, 2018 and 2019, respectively. |
Interest capitalization | (r) Interest capitalization The Company capitalizes interest costs as part of the historical costs of acquiring or constructing certain assets during the period of time required to get the assets ready for their intended use or sell the asset to a customer. The Company capitalizes interest costs to the extent that expenditures to acquire, construct, or develop an asset have occurred and interest costs have been incurred. Interest capitalized for property, plant and equipment, or solar power systems is depreciated over the estimated useful life of the related asset, as the qualifying asset is placed into service. The interest capitalized for project assets forms part of the cost of revenues when such project assets are sold and all revenue recognition criteria are met. Interest capitalization ceases once a project is substantially complete or no longer undergoing construction activities to prepare it for its intended use. |
Assets retirement obligation | (s) Assets retirement obligation Certain jurisdictions in which the Company's project assets are located or certain land lease agreements require the removal of the solar power systems when the project is decommissioned. Assets retirement obligation (“ARO”) for the estimated costs of decommissioning associated with long-lived assets at a future date are accounted for in accordance with ASC 410-20, Asset Retirement Obligations (“ASC 410-20”). ASC 410-20 requires an entity to recognize the fair value of a liability for an ARO in the period in which it is incurred and a reasonable estimate of fair value can be made. Upon initial recognition of a liability for an ARO, the asset retirement cost is capitalized by increasing the carrying amount of the related long-lived asset by the same amount. Over time, the liability is accreted to its expected future value, while the capitalized cost is depreciated over the useful life of the related asset. The Company's ARO included in solar power systems were $43 and $26 as of December 31, 2018 and 2019, respectively. |
Leases | (t) Leases Effective January 1, 2019, the Company adopted Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842), as amended ("ASC 842") for its lease arrangements, which were recorded under ASC 840, Leases, before implementation. Upon adoption of ASC 842, the Company elected to use the remaining lease term as of January 1, 2019 in the estimation of the applicable discount rate for leases that were in place at adoption. For the initial measurement of the lease liability for leases commencing after January 1, 2019, the Company use the discount rate as of the commencement date of the lease, incorporating the entire lease term. The Company, as a lessee, has both finance and operating lease arrangements. Right-of-use ("ROU") assets and operating lease liabilities on the consolidated balance sheets include operating lease agreements. Finance lease agreements are recorded in property, plant and equipment, other payables and other non-current liabilities on the consolidated balance sheets. Lease liabilities that become due within one year of the balance sheet date are classified as current liabilities. The Company elected the practical expedient to combine the lease and related non-lease components for all existing leases. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) The Company determines if an arrangement is a lease at inception. Leases are classified as operating or finance leases in accordance with the recognition criteria in ASC 842-20-25. At the commencement date of a lease, the Company determines the classification of the lease based on the relevant factors and presents and records a right-of- use ("ROU") asset and lease liability. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are calculated as the present value of the lease payments not yet paid. Variable lease payments are excluded from the ROU asset and lease liability calculations and are recognized in the period which the obligations for those payments are incurred. Operating lease ROU assets also include any lease prepayments made, initial direct costs and deferred rent if any and exclude lease incentives. As the rate implicit in the Company’s operating leases is not typically readily available, the Company uses an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. Some of the Company’s lease agreements include options to extend or terminate the lease, which are not included in its minimum lease terms unless they are reasonably certain to be exercised. All operating lease expenses are fixed, which are accounted for on a straight-line basis over the lease term and that of finance lease include interest and amortization expenses incurred during the current year. The Company's leases do not contain any material residual value guarantees or material restrictive covenants. Leases with an initial lease term of 12 months or less are not recorded on the consolidated balance sheet. For finance leases, the amortization of the asset is recognized over the shorter of the lease term or useful life of the underlying asset within depreciation and amortization expense and other expenses from managed and franchised properties in consolidated statements of operations. The interest expense related to finance leases, including any variable lease payments, is recognized in interest expense in consolidated statements of operations. The Company assesses ROU assets for impairment quarterly. When events or circumstances indicate the carrying value may not be recoverable, the Company evaluates the net book value of the asset for impairment by comparison to the projected undiscounted future cash flows. If the carrying value of the asset is determined to not be recoverable and is in excess of the estimated fair value, the Company recognizes an impairment charge in asset impairments on its consolidated statements of income. |
Contingencies | (u) Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. If a potential material loss contingency is not probable but is reasonably possible, or is probable but the amount cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed. Legal costs incurred in connection with loss contingencies are expensed as incurred. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) |
Income taxes | (v) Income taxes Deferred income taxes are recognized for temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, net tax loss carry-forwards and credits using the enacted tax rates expected to apply to taxable income in the periods in which the deferred tax liability or asset is expected to be settled or realized. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. Income tax expense includes (i) deferred tax expense, which generally represents the net change in the deferred tax asset or liability balance during the year plus any change in valuation allowances; (ii) current tax expense, which represents the amount of tax payable to or receivable from a taxing authority; and (iii) non-current tax expense, which represents the increases and decreases in amounts related to uncertain tax positions from prior periods and not settled with cash or other tax attributes. The Company only recognizes tax benefits related to uncertain tax positions when such positions are more likely than not of being sustained upon examination. For such positions, the amount of tax benefit that the Company recognizes is the largest amount of tax benefit that is more than fifty percent likely of being sustained upon the ultimate settlement of such uncertain tax position. The Company records penalties and interests associated with the uncertain tax positions as a component of income tax expense. The Company uses the flow-through method to account for investment tax credits earned on qualifying projects placed into service. Under this method the investment tax credits are recognized as a reduction to income tax expense in the year the credit arises. The use of the flow-through method also results in a basis difference from the recognition of a deferred tax liability and an immediate income tax expense for reduced future tax depreciation of the related assets. Such basis differences are accounted for pursuant to the income statement method. |
Revenue recognition | (w) Revenue recognition The Company recognizes revenue when it satisfies a performance obligation by transferring a promised good or service to a customer. Solar power products and materials Solar power products, including solar modules, other solar power products, solar system kits and materials related to solar power products are transferred at a point in time when the customer obtains control of the products, which is typically upon shipment or delivery depending on the contract terms. Revenues of solar product sales also include reimbursements received from customers for shipping and handling costs. Sales agreements typically contain the assurance-type customary product warranties but do not contain any post-shipment obligations nor any return or credit provisions, see note 2 (aa) for the Company’s accounting policy for warranty. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) The Company assessed whether it is probable that the Company will collect substantially all of the consideration to which it will be entitled in exchange for the products that will be transferred to the customer. As of December 31, 2018 and 2019, the Company had inventories of $9.0 million and $7.7 million, respectively, relating to sales to customers where revenues were not recognized because the collection of payment was determined to be not probable. The delivered products remain as inventories on consolidated balance sheets, regardless of whether the control has been transferred. If the collection of payment becomes probable in the future, the Company would then recognize revenue, adjust inventories and recognize cost of revenues. O&M services O&M services are transferred over time when customers receive and consume the benefits provided by the Company’s performance under the terms of service arrangements. Revenues from O&M services are recognized overtime based on the work completed to date which does not require re-performances and the costs of O&M services are expensed when incurred. EPC and development services The Company recognizes revenue for sales of EPC and development services over time based on the estimated progress to completion using a cost-based input method. In applying the cost-based input method of revenue recognition, the Company use the actual costs incurred relative to the total estimated costs to determine the Company’s progress towards contract completion and to calculate the corresponding amount of revenue and gross profit to recognize. Cost-based input method of revenue recognition is considered a faithful depiction of the Company’s efforts to satisfy EPC and development services contracts and therefore reflect the transfer of goods or services to a customer under such contracts. Costs incurred towards contract completion may include costs associated with direct materials, labor, subcontractors, and other indirect costs related to contract performance. The cost-based input method of revenue recognition requires the Company to make estimates of net contract revenues and costs to complete the Company’s projects. In making such estimates, significant judgment is required to evaluate assumptions related to the amount of net contract revenues, including the impact of any performance incentives, liquidated damages, and other payments to customers. Significant judgment is also required to evaluate assumptions related to the costs to complete the Company’s projects, including materials, labor, contingencies, and other system costs. If estimated total costs of any contract are greater than the estimated net revenues, of the contract, the Company recognizes the entire estimated loss in the period the loss becomes known. The cumulative effect of revisions to estimates related to net contract revenues and costs to complete contracts, including penalties, claims, change orders, performance incentives, anticipated losses, and others are recorded in the period in which revisions to estimates are identified and the amounts can be reasonably estimated. Solar power projects Sales of solar power projects are recognized at a point in time when customers obtain control of solar power projects. For sales of solar power projects in which the company obtains an interest in the project sold to the customer, the Company recognizes all of the revenue for the consideration received, including the fair value of the non-controlling interest the Company obtained, and defer any profit associated with the interest obtained. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) Electricity revenue Electricity revenue is generated primarily by the Company’s solar power plants under long-term PPAs and performance based energy incentives. For electricity sold under PPAs, the Company recognizes electricity revenue based on the price stated in the PPAs when electricity has been generated and transmitted to the grid. Performance-based energy incentives are awarded under certain state programs for the delivery of renewable electricity when the conditions attached to it have been met and there is reasonable assurance that the incentives will be received. During the years ended December 31, 2017, 2018 and 2019, the Company recognized performance-based energy incentives of $10.9 million, $4.7 million, and $3.9 million, respectively, related to electricity generated and recognized in revenue. Disaggregation of Revenue The table represents a disaggregation of revenue from contracts with customers for the years ended December 31, 2017, 2018, and 2019. See Segment Information Note 22 for details of revenues generated from each product or service and revenues generated from different geographic locations. The following table represents a disaggregation of revenue recognized at a point in time or over time: Years Ended December 31, 2017 2018 2019 (In Thousands of U.S. Dollars) MSS: Revenue recognized at a point in time 2,705,985 2,095,743 2,238,310 Revenue recognized over time 6,938 73,175 242,828 Energy: Revenue recognized at a point in time 633,195 1,542,906 668,476 Revenue recognized over time 44,275 32,688 50,969 3,390,393 3,744,512 3,200,583 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) The Company’s contract assets and liabilities are as follow: At December 31, At December31, Fluctuation (In Thousands of U.S. Dollars) Contract Assets Accounts receivables, unbilled 38 15,256 15,218 Contract Liabilities Advances from customers 39,024 134,806 95,782 Other current liabilities 51,381 20,917 (30,464) 90,405 155,723 65,318 For the year ended December 31, 2019, $62.0 million revenue is recognized from the beginning balance of contract liabilities as of January 1, 2019. Contract liabilities of $155.7 million as of December 31, 2019 are expected to be realized within one year. Practical Expedients and Exemptions The Company applies the new revenue standard requirements to a portfolio of contracts (or performance obligations) with similar characteristics for transactions where it is expected that the effects on the financial statements of applying the revenue recognition guidance to the portfolio would not differ materially from applying this guidance to the individual contracts (or performance obligations) within that portfolio. Therefore, the Company has elected the portfolio approach in applying the new revenue guidance. The Company has made an accounting policy election to not assess whether promised products are performance obligations if they are immaterial in the context of the contract with the customer. If the revenue related to a performance obligation that includes products that are immaterial in the context of the contract is recognized before those immaterial products are transferred to the customer, then the related costs to transfer those products are accrued. The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed. The Company generally expenses incremental costs of obtaining a contract when incurred because the amortization period would be less than one year. The incremental costs are recorded in operating expense. Incremental costs of obtaining a contract with an amortization period more than one year are not material to the Company. |
Shipping and handling costs | (x) Shipping and handling costs Payments received from customers for shipping and handling costs are included in net revenues. Shipping and handling costs relating to sales of $79,853, $69,855 and $88,079, are included in selling expenses for the years ended December 31, 2017, 2018 and 2019, respectively. |
Research and development | 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (y) Research and development Costs related to the design, development, testing and enhancement of products and silicon reclamation program are included in research and development expenses. Research and development costs are expensed when incurred and amounted to $28,777, $44,193 and $47,045 for the years ended December 31, 2017, 2018 and 2019, respectively. |
Other operating income, net | (z) Other operating income, net Other operating income, net primarily consists of gains or losses on disposal of solar power systems and property, plant and equipment, and government grants received, and compensation from business interruption insurance. Government grants received by the Company consist of unrestricted and restricted grants and subsidies. Unrestricted grants that allowed the Company’s full discretion in utilizing the funds are recognized as other operating income upon receipt of cash and when all the conditions for their receipt have been satisfied. Restricted grants related to prepaid land use rights, property, plants and equipment and certain projects, are recorded as deferred subsidies in other non-current liabilities and are amortized on a straight-line basis over the term of related assets. The following table summarizes the Company’s other operating income, net: Years Ended December 31, 2017 2018 2019 $ $ $ Net gain on disposal of solar power system (27,803) (36,098) (1,666) Net loss on disposal of property, plant and equipment 1,960 2,565 1,227 Government grants (6,473) (11,013) (10,097) Business interruption insurance compensation (15,238) — — (47,554) (44,546) (10,536) |
Warranty cost | (aa) Warranty cost Before June 2009, the Company typically sold its standard solar modules with a two-year guarantee for defects in materials and workmanship and a 10-year and 25-year warranty against declines of more than 10% and 20%, respectively, from the initial minimum power generation capacity at the time of delivery. In June 2009, the Company increased its guarantee for defects in materials and workmanship to six years. In August 2011, the Company increased its guarantee for defects in materials and workmanship to ten years. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) In 2019, the Company increased its guarantee for defects in materials and workmanship up to twelve years and the Company warrant that, for a period of 25 years, its standard polycrystalline modules will maintain the following performance levels: (i) during the first year, the actual power output of the module will be no less than 97.5% of the labeled power output; (ii) from the second year to the 24th year, the actual annual power output decline of the module will be no more than 0.7%; and (iii) by the end of the 25th year, the actual power output of the module will be no less than 80.7% of the labeled power output. The Company has lengthened the warranty against decline in performance for its bifacial module and double glass module products to 30 years. For solar power projects built by the Company, the Company provides a limited workmanship or balance of system warranty against defects in engineering design, installation and construction under normal use, operation and service conditions for a period of up to ten years following the energizing of the solar power project. In resolving claims under the workmanship or balance of system warranty, the Company has the option of remedying through repair, refurbishment or replacement of equipment. The Company has entered into similar workmanship warranties with its suppliers to back up its warranties. The Company maintains warranty reserves to cover potential liabilities that could arise under these guarantees and warranties. Due to limited warranty claims to date, the Company accrues the estimated costs of warranties based on an assessment of its competitors’ and its own actual claim history, industry-standard accelerated testing, estimates of failure rates from the Company’s quality review, and other assumptions that the Company believes to be reasonable under the circumstances. Actual warranty costs are accumulated and charged against the accrued warranty liability. To the extent that accrual for warranty costs differs from the estimates, the Company will prospectively revise its accrual rate. The Company currently records a 1% warranty provision against the revenue for sales of solar power products. The Company has entered into agreements with a group of insurance companies with high credit ratings to back up its warranties. Under the terms of the insurance policies, which are designed to match the terms of the Company’s solar module product warranty policy, the insurance companies are obliged to reimburse the Company, subject to certain maximum claim limits and certain deductibles, for the actual product warranty costs that the Company incurs under the terms of its solar module product warranty policy. The Company records the insurance premiums initially as prepaid expenses and amortizes them over the respective policy period of one year. The unamortized carrying amount is $1,286 and $1,486 as of December 31, 2018 and 2019, respectively and was included as a component of prepaid expenses and other current assets. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) The warranty obligations the Company records relate to defects that existed when the product was sold to the customer. The event which the Company is insured against through its insurance policies is the sale of products with these defects. Accordingly, the Company views the insured losses attributable to the shipment of defective products covered under its warranty as analogous to potential claims, or claims that have been incurred as of the product ship date, but not yet reported. The Company expects to recover all or a portion of the cost of its obligations with respect to the defective products through insurance claims. Therefore, the Company’s accounting policy is to record an asset for the amount determined to be probable of recovery from the insurance claims (not to exceed the amount of the total losses incurred), consistent with the guidance set forth at ASC 410-30. The Company considers the following factors in determining whether an insurance receivable that is probable and recoverability can be reasonably estimated: (i) reputation and credit rating of the insurance company; (ii) comparison of the solar module product warranty policy against the terms of the insurance policies, to ensure valid warranty claims submitted by customers will be covered by the policy and therefore reimbursed by the insurance companies; and (iii) with respect to specific claims submitted, written communications from the insurance company are monitored to ensure the claim has been submitted to the insurance company, and reimbursements are probable to be subsequently collected. The successfully processed claims provide further evidence that the insurance policies are functioning as anticipated. To the extent uncertainties regarding the solvency of insurance carriers or the legal sufficiency of insurance claims (including if they became subject to litigation) were to arise, the Company will establish a provision for uncollectible amounts based on the specific facts and circumstances. To date, no provision had been determined to be necessary. In addition, to the extent that accrual for warranty costs differs from the estimates and the Company prospectively changes its accrual rate, this change may result in a change to the amount expected to be recovered from insurance. As the warranty obligation and related recovery asset do not meet the criteria for offsetting, the gross amounts are reported in the Company’s consolidated balance sheets. The asset is expected to be realized over the life of the warranty obligation, which is 25 The Company made downward adjustments to its accrued warranty costs of $1,446 and other non-current assets of $800, for the year ended December 31, 2019, to reflect the general declining trend of the average selling price of solar modules, which is a primary input into the estimated warranty costs. Accrued warranty costs (net effect of adjustments) of $19,793, $13,188 and $28,044 are included in cost of revenues for the years ended December 31, 2017, 2018 and 2019, respectively. |
Foreign currency translation | 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (ab) Foreign currency translation The United States dollars (“U.S. dollars” or “$”), the currency in which a substantial amount of the Company’s transactions are denominated, is used as the functional and reporting currency of CSI. Monetary assets and liabilities denominated in currencies other than the U.S. dollars are translated into U.S. dollars at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the U.S. dollars during the year are converted into the U.S. dollars at the applicable rates of exchange prevailing on the transaction date. Transaction gains and losses are recognized in the consolidated statements of operations. Gains and losses on intra-entity foreign currency transactions that are of a long-term-investment nature (that is, settlement is not planned or anticipated in the foreseeable future) between consolidated entities are not recognized in earnings, but are included as a component of other comprehensive income. The financial records of certain of the Company’s subsidiaries are maintained in local currencies other than the U.S. dollars, such as Renminbi (“RMB”), Euros, Canadian dollars (“CAD”), Japanese yen and Brazilian reals (“BRL”), which are their functional currencies. Assets and liabilities are translated at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated using the average rate for the year. Translation adjustments are reported as foreign currency translation adjustment and are shown as a separate component of other comprehensive income in the statements of comprehensive income. |
Comprehensive income | (ac) Comprehensive income Comprehensive income includes all changes in equity except those resulting from investments by owners and distributions to owners. For the years presented, total comprehensive income included (i) net income, (ii) foreign currency translation adjustments, (iii) gains and losses on intra-entity foreign currency transactions that are of a long-term-investment nature (that is, settlement is not planned or anticipated in the foreseeable future) between consolidated entities and (iv) the unrealized gains or losses (effective portion) on derivative instruments that qualify for and have been designated as cash flow hedges. |
Foreign currency risk | (ad) Foreign currency risk The majority of the Company’s sales in 2017, 2018 and 2019 were denominated in U.S. dollars, Renminbi and Japanese yen, with the remainder in other currencies such as Euros, Brazilian reals, Australian dollars, Canadian dollars.. The Company’s Renminbi costs and expenses are primarily related to the sourcing of solar cells, silicon wafers and silicon, other raw materials, including aluminum and silver paste, toll manufacturing fees, labor costs and local overhead expenses within the PRC. From time to time, the Company enters into loan arrangements with commercial banks that are denominated primarily in Renminbi, U.S. dollars and Japanese yen. Most of its cash and cash equivalents and restricted cash are denominated in Renminbi. Fluctuations in exchange rates, particularly between the U.S. dollars, Renminbi, Thailand Baht, British pounds, Canadian dollars, Japanese yen and Euros, may result in foreign exchange gains or losses. Since 2008, the Company has hedged part of its foreign currency exposures against the U.S. dollars using foreign currency forward or option contracts. |
Concentration of credit risk | 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (ae) Concentration of credit risk Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, accounts receivable, advances to suppliers and amounts due from related parties. All of the Company's cash and cash equivalents are held with financial institutions that Company management believes to have high credit quality. The Company conducts credit evaluations of customers and generally does not require collateral or other security from its customers. The Company establishes an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit risk of specific customers. With respect to advances to suppliers, such suppliers are primarily suppliers of raw materials. The Company performs ongoing credit evaluations of its suppliers' financial conditions. The Company generally does not require collateral or security against advances to suppliers, however, it maintains a reserve for potential credit losses and such losses have historically been within management's expectation. The prepayments made by the Company are unsecured and expose the Company to supplier credit risk. As of December 31, 2018 and 2019, prepayments made to individual suppliers were all less than 10% of total advances to suppliers and the concentration risk is relatively low. |
Fair value of financial instruments | (af) Fair value of financial instruments The Company applies authoritative guidance for fair value measurements for its financial assets and liabilities. The guidance defines fair value as an exit price representing the amount that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. The guidance also establishes a fair value hierarchy, which prioritized the inputs used in measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 Level 2 Level 3— |
Derivatives instruments and hedging activity | 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (ag) Derivatives instruments and hedging activity The Company’s primary objective for holding derivative financial instruments is to manage risks. Depending on the terms of the specific derivative instruments and market conditions, some of the Company’s derivative instruments may be assets and liabilities at any particular point in time. The recognition of gains or losses resulting from changes in fair value of these derivative instruments is based on the use of each derivative instrument and whether it qualifies for hedge accounting. The Company enters into derivatives to hedge its foreign currency risk exposure to losses from price adjustments of electricity and interest rate risk. When the Company determines to designate a derivative instrument as a cash flow hedge, the Company formally documents the hedging relationship and its risk management objective and strategy for undertaking the hedge, the hedging instrument, the hedged item, the nature of the risk being hedged, how the hedging instrument’s effectiveness in offsetting the hedged risk will be assessed, and a description of the method of measuring ineffectiveness. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative that is used in hedging transactions is highly effective in offsetting changes in cash flows of hedged items. The effective portion of gains and losses on derivatives designated as cash flow hedges are initially deferred in other comprehensive income before being recognized in the statements of operations in the same period as the hedged transactions are reflected in earnings. Gains and losses on derivatives that are not designated or fail to qualify as effective hedges are recognized in the statements of operations as incurred. Fair value of the derivative instruments is determined using pricing models developed based on the underlying price of the hedged items. The values are also adjusted to reflect nonperformance risk of the counterparty and the Company, as necessary. |
Earnings (loss) per share | (ah) Earnings (loss) per share Basic earnings (loss) is computed by dividing income (loss) attributable to holders of common shares by the weighted average number of common shares outstanding during the year. Diluted earnings (loss) per common share reflects the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted into common shares. Common share equivalents are not included in the calculation of dilutive earnings per share if their effects are anti-dilutive. |
Share-based compensation | (ai) Share-based compensation The Company’s share-based compensation with employees, such as share options, restricted shares and restricted share units (“RSUs”), is measured at the grant date, based on the fair value of the award, and is recognized as compensation expense, net of estimated forfeitures, over the period during which an employee is required to provide service in exchange for the award, which is generally the vesting period. |
Recently issued accounting pronouncements | 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (aj) Recently issued accounting pronouncements In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)", requires the recognition of right-of-use ("ROU") assets and lease liabilities on the balance sheet and changes the pattern of expense recognition in the statement of operations. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842)—Targeted Improvements”, which provided an optional transition method to apply the new lease requirements through a cumulative-effect adjustment in the period of adoption. The Company adopted the new standard on January 1, 2019 using this optional transition method to all leases existed at the date of initial application. In addition, the Company elected the transition practical referred to as the “package of three”, that must be taken together and allows entities to (1) not reassess whether existing contracts contain leases, (2) carryforward the existing lease classification, and (3) not reassess initial direct costs associated with existing leases. This adoption primarily affects the Company's leases arrangements previously accounted for under Topic 840. As a result of adoption, the Company recognized right-of-use ("ROU") assets and lease liabilities on the balance sheet for operating leases of $33,829. Upon adoption of ASC 842, the Company elected to use the remaining lease term as of January 1, 2019 in the estimation of the applicable discount rate for leases that were in place at adoption. For the initial measurement of the lease liability for leases commencing after January 1, 2019, the Company use the discount rate as of the commencement date of the lease, incorporating the entire lease term. The treatment of finance leases has no difference with that under Topic 840 and there is no significant impact on results of operations or cash flows. The reported results for year 2019 reflect the adoption of Topic 842, while the reported results for year 2017 and 2018 were prepared under the previous lease accounting guidance. There is no impact to the beginning balance of retained earnings on January 1, 2019 for this adoption. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326)”, which has been subsequently updated by ASU 2019-04, 2019-05, 2019-10, 2019-11 and 2020-03. The amendments change the impairment model for most financial assets, and will require the use of an “expected loss” model for instruments measured at amortized cost. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019. The Company does not expect a material impact to its consolidated financial statement upon adoption of this ASU. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework–Changes to the Disclosure Requirements for Fair Value”. ASU 2018-13 removes and modifies existing disclosure requirements on fair value measurement, namely regarding transfers between levels of the fair value hierarchy and the valuation processes for Level 3 fair value measurements. Additionally, ASU 2018-13 adds further disclosure requirements for Level 3 fair value measurements, specifically changes in unrealized gains and losses and other quantitative information. ASU 2018-13 is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Company does not expect a material impact to its consolidated financial statement upon adoption of this ASU. In October 2018, the FASB issued ASU 2018-17, “Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities”, which expands variable interests to indirect interests held through related parties under common control. ASU 2018-17 is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. It is required to be applied retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. The Company does not expect a material impact to its consolidated financial statement upon adoption of this ASU. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies income tax accounting in various areas including, but not limited to, the accounting for hybrid tax regimes, tax implications related to business combinations, and interim period accounting for enacted changes in tax law, along with some codification improvements. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. Certain changes in the standard require retrospective or modified retrospective adoption, while other changes must be adopted prospectively. The Company is currently evaluating ASU 2019-12 and its impact on its consolidated financial statements. |
SUMMARY OF PRINCIPAL ACCOUNTI_3
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |
Schedule of expected useful lives of property and equipment | Buildings 20 years Leasehold improvements Over the shorter of the lease term or their estimated useful lives Machinery 5 Furniture, fixtures and equipment 5 years Motor vehicles 5 years |
Schedule of useful life intangible assets | Technical know-how 10 years Computer software 1 |
Schedule of disaggregation of revenue | Years Ended December 31, 2017 2018 2019 (In Thousands of U.S. Dollars) MSS: Revenue recognized at a point in time 2,705,985 2,095,743 2,238,310 Revenue recognized over time 6,938 73,175 242,828 Energy: Revenue recognized at a point in time 633,195 1,542,906 668,476 Revenue recognized over time 44,275 32,688 50,969 3,390,393 3,744,512 3,200,583 |
Schedule of contract assets and contract liabilities | At December 31, At December31, Fluctuation (In Thousands of U.S. Dollars) Contract Assets Accounts receivables, unbilled 38 15,256 15,218 Contract Liabilities Advances from customers 39,024 134,806 95,782 Other current liabilities 51,381 20,917 (30,464) 90,405 155,723 65,318 |
Summary of the Company's other operating income, net | Years Ended December 31, 2017 2018 2019 $ $ $ Net gain on disposal of solar power system (27,803) (36,098) (1,666) Net loss on disposal of property, plant and equipment 1,960 2,565 1,227 Government grants (6,473) (11,013) (10,097) Business interruption insurance compensation (15,238) — — (47,554) (44,546) (10,536) |
ALLOWANCE FOR DOUBTFUL ACCOUN_2
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Allowances for accounts receivable, trade | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS | |
Schedule of allowances | Years Ended December 31, 2017 2018 2019 $ $ $ Beginning of the year 26,119 32,941 32,733 Allowances made (reversed) during the year, net 5,345 869 (1,386) Accounts written-off against allowances (174) (297) (309) Foreign exchange effect 1,651 (780) (1,493) Closing balance 32,941 32,733 29,545 |
Allowances for advances to suppliers | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS | |
Schedule of allowances | Years Ended December 31, 2017 2018 2019 $ $ $ Beginning of the year 19,527 18,762 20,926 Allowances made (reversed) during the year, net (833) 2,287 738 Accounts written-off against allowances — — (1,452) Foreign exchange effect 68 (123) 69 Closing balance 18,762 20,926 20,281 |
Allowances for other receivables | |
ALLOWANCE FOR DOUBTFUL ACCOUNTS | |
Schedule of allowances | Years Ended December 31, 2017 2018 2019 $ $ $ Beginning of the year 9,251 10,349 9,704 Allowances made (reversed) during the year, net 549 (175) 1,919 Foreign exchange effect 549 (470) (192) Closing balance 10,349 9,704 11,431 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INVENTORIES | |
Schedule of inventories | At December 31, At December 31, 2018 2019 $ $ Raw materials 47,759 75,722 Work-in-process 46,817 74,105 Finished goods 167,446 404,243 262,022 554,070 |
PROJECT ASSETS (Tables)
PROJECT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PROJECT ASSETS | |
Schedule of project assets | At December 31, At December 31, 2018 2019 $ $ Project assets — Acquisition cost 51,635 55,158 Project assets — EPC and other cost 1,234,128 1,031,976 1,285,763 1,087,134 Current portion 933,563 604,083 Non-current portion 352,200 483,051 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Schedule of property, plant and equipment, net | At December 31, At December 31, 2018 2019 $ $ Buildings 441,975 453,712 Leasehold improvements 13,058 14,225 Machinery 785,874 1,074,460 Furniture, fixtures and equipment 64,135 64,117 Motor vehicles 6,100 6,351 Land 18,810 20,451 1,329,952 1,633,316 Accumulated depreciation (489,927) (598,297) Impairment (30,503) (45,437) Subtotal 809,522 989,582 Construction in process 75,464 56,453 Property, plant and equipment, net 884,986 1,046,035 |
SOLAR POWER SYSTEMS, NET (Table
SOLAR POWER SYSTEMS, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SOLAR POWER SYSTEMS, NET | |
Schedule of solar power systems, net | At December 31, At December 31, 2018 2019 $ $ Solar power systems in operation 66,641 70,449 Solar power systems under construction 4,484 4,830 Accumulated depreciation (16,227) (22,322) Solar power systems, net 54,898 52,957 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INTANGIBLE ASSETS, NET | |
Schedule of intangible assets | Gross Carrying Accumulated At December 31, 2019 Amount Amortization Net $ $ $ Technical know-how 1,428 (1,425) 3 Computer software 38,205 (15,417) 22,788 Total intangible assets, net 39,633 (16,842) 22,791 Gross Carrying Accumulated At December 31, 2018 Amount Amortization Net $ $ $ Technical know-how 2,369 (1,458) 911 Computer software 25,882 (11,890) 13,992 Total intangible assets, net 28,251 (13,348) 14,903 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENT | |
Schedule of fair value of derivative instruments on the consolidated balance sheets | Fair Value of Derivative Assets At December 31, 2018 At December 31, 2019 Balance Sheet Location Fair Value Balance Sheet Location Fair Value $ $ Foreign exchange forward contracts Derivative assets — current 4,166 Derivative assets — current 5,097 Foreign exchange option contracts Derivative assets — current 1 Derivative assets — current 450 Interest rate swap Derivative assets — current 594 Derivative assets — current — Interest rate swap Derivative assets — non-current 3,216 Derivative assets — non-current — Total 7,977 Total 5,547 Fair Value of Derivative Liabilities At December 31, 2018 At December 31, 2019 Balance Sheet Location Fair Value Balance Sheet Location Fair Value $ $ Foreign exchange forward contracts Derivative liabilities — current 13,480 Derivative liabilities — current 10,127 Foreign exchange option contracts Derivative liabilities — current 218 Derivative liabilities — current 25 Interest rate swap Derivative liabilities — current — Derivative liabilities — current 329 Interest rate swap Derivative liabilities — non-current — Derivative liabilities — non-current 1,841 Total 13,698 Total 12,322 |
Schedule of effect of derivative instruments on consolidated statements of operations | Amount of Gain (Loss) Recognized in Statements Location of of Operations Gain (Loss) Recognized Years Ended December 31 in Statements of Operations 2017 2018 2019 $ $ $ Foreign exchange forward contracts Gain (loss) on change in fair value of derivatives (2,638) (16,414) (20,249) Foreign exchange option contracts Gain (loss) on change in fair value of derivatives — (2,023) (1,022) Warrants Gain (loss) on change in fair value of derivatives 711 — — Interest rate swap Gain (loss) on change in fair value of derivatives 1,655 (793) (947) Total (272) (19,230) (22,218) |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
VARIABLE INTEREST ENTITIES | |
Schedule of carrying amounts and classifications of consolidated VIE's assets and liabilities, excluding intercompany balances | At December 31, At December 31, 2018 2019 $ $ Project assets 185,448 197,366 Other assets 21,836 26,102 Total assets 207,284 223,468 Short-term borrowings 9,160 139,708 Long-term borrowings 113,973 — Other liabilities 59,476 66,569 Total liabilities 182,609 206,277 |
INVESTMENTS IN AFFILIATES (Tabl
INVESTMENTS IN AFFILIATES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INVESTMENTS IN AFFILIATES | |
Schedule of investments in affiliates | At December 31, 2018 2019 Carrying Ownership Carrying Ownership Value Percentage Value Percentage $ (%) $ (%) RE Roserock Holdings LLC (“Roserock”) 62,767 49 83,034 49 Canadian Solar Infrastructure Fund, Inc. 23,990 14.66 19,162 14.66 Suzhou Financial Leasing Co., Ltd. 14,361 6 16,050 6 Others 24,977 21-49 34,582 15-49 Total 126,095 152,828 |
LEASE (Tables)
LEASE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LEASE | |
Schedule of leases | Year ended December 31, 2019 $ Finance lease cost: Amortization of right-of-use assets 18,900 Interest on lease liabilities 3,213 Operating fixed lease cost 17,619 Short-term lease cost 8,920 Total lease cost 45,916 |
Schedule of other supplemental information: | Year ended December 31, 2019 $ Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance lease (3,213) Operating cash flows from operating lease (15,866) Financing cash flows from finance lease (33,614) Right-of-use assets obtained in exchange of new finance lease liabilities in non-cash transaction 7,300 Right-of-use assets obtained in exchange of new operating lease liabilities in non-cash transaction 18,222 At December 31, 2019 Weighted average of remaining operating lease term - finance leases (in years) 1.41 Weighted average of remaining operating lease term - operating leases (in years) 3.03 Weighted average of operating lease discount rate - finance lease 5.82 % Weighted average of operating lease discount rate - operating lease 4.36 % |
Schedule of lease maturities | Operating Lease Payment Finance Lease Payment Total Lease Payment Year Ending December 31: $ $ $ 2020 18,953 27,439 46,392 2021 12,980 13,087 26,066 2022 4,666 604 5,270 2023 2,541 — 2,541 2024 1,077 — 1,077 Thereafter 1,504 — 1,504 Total future minimum lease payments 41,721 41,130 82,851 Less: imputed interest 2,236 2,056 4,292 NPV for future minimum lease payments 39,485 39,074 78,559 Analysis as: Short-term 18,767 25,998 44,765 Long-term 20,718 13,076 33,794 Total lease liabilities 39,485 39,074 78,559 |
Schedule of lease liabilities under(Topic 840) | The future minimum lease payments from 2018 Form 20-F as filed in accordance with Leases (Topic 840) were as follows: Operating Lease Payment Finance Lease Payment Total Lease Payment Year Ending December 31: $ $ $ 2019 18,287 40,945 59,232 2020 11,790 23,483 35,273 2021 9,379 11,842 21,221 2022 2,485 556 3,041 2023 838 — 838 Thereafter 7,743 — 7,743 Total future minimum lease payments 50,522 76,826 127,348 Less: imputed interest 5,024 5,024 NPV for future minimum lease payments 71,802 71,802 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
BORROWINGS | |
Schedule of bank borrowings | At December 31, At December 31, 2018 2019 Analysis as: Short-term borrowings 856,876 819,031 Long-term borrowings, current portion 171,051 114,089 Subtotal for short-term borrowings 1,027,927 933,120 Long-term borrowings on project assets — current (1) 265,770 286,173 Long-term borrowings 393,614 619,477 Total 1,687,311 1,838,770 |
Schedule of future principal repayments on the long-term borrowings | 2020 400,262 2021 245,927 2022 276,675 2023 40,679 2024 15,158 Thereafter 41,038 Total 1,019,739 Less: future principal repayment related to long-term borrowings, current portion (400,262) Total long-term portion $ 619,477 |
Schedule of average effective interest rates on borrowings | At December 31, At December 31, 2018 2019 Short-term borrowings 4.58 % 4.86 % Long-term borrowings on project assets – current 4.61 % 3.65 % Long-term borrowings 3.13 % 5.43 % |
Schedule of interest incurred | Years Ended December 31 2017 2018 2019 $ $ $ Interest capitalized — project assets 13,274 15,462 10,794 Interest capitalized — property, plant and equipment 1,010 1,182 2,620 Interest expense 117,971 106,032 81,326 Total interest incurred 132,255 122,676 94,740 |
ACCRUED WARRANTY COSTS (Tables)
ACCRUED WARRANTY COSTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ACCRUED WARRANTY COSTS | |
Summary of the Company's warranty activity | Years Ended December 31, 2017 2018 2019 $ $ $ Beginning balance 61,139 55,659 50,605 Warranty provision 19,793 13,188 28,044 Warranty costs incurred (26,552) (16,732) (23,282) Foreign exchange effect 1,279 (1,510) 511 Ending balance 55,659 50,605 55,878 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES | |
Schedule of provision for income taxes | Years Ended December 31, 2017 2018 2019 $ $ $ Income before income taxes Canada (30,524) 10,570 (61,880) United States (33,205) 61,377 8,319 PRC including Hong Kong and Taiwan 173,266 178,050 204,632 Japan 28,164 27,555 29,335 Other 6,233 26,848 28,215 143,934 304,400 208,621 Current tax Canada 346 (1,846) (3,420) United States (54,482) (14,786) (4,803) PRC including Hong Kong and Taiwan (7,383) 27,285 44,622 Japan 31,266 5,325 13,229 Other (8,008) 2,397 7,057 (38,261) 18,375 56,685 Deferred tax Canada (6,464) 12,117 (6,558) United States 67,426 32,696 (2,412) PRC including Hong Kong and Taiwan 23,452 2,653 (5,333) Japan (4,499) (3,381) (2,953) Other (703) (491) 2,637 79,212 43,594 (14,619) Total income tax expense Canada (6,118) 10,271 (9,978) United States 12,944 17,910 (7,215) PRC including Hong Kong and Taiwan 16,069 29,938 39,289 Japan 26,767 1,944 10,276 Other (8,711) 1,906 9,694 40,951 61,969 42,066 |
Schedule of movement and balance of the Company's liability for uncertain tax positions (excluding interest and penalties) | Years Ended December 31, 2017 2018 2019 $ $ $ Beginning balance 5,684 6,181 15,730 Addition for tax positions related to the current year 1,376 9,806 11 Reductions for tax positions from prior years/Statute of limitations expirations (1,094) — (5,720) Foreign exchange effect 215 (257) 536 Ending balance 6,181 15,730 10,557 |
Schedule of components of the deferred tax assets and liabilities | At December 31, At December 31, 2018 2019 $ $ Deferred tax assets: Accrued warranty costs 9,424 8,326 Bad debt allowance 7,019 10,324 Inventory write-down 1,723 1,128 Future deductible expenses 26,973 20,731 Depreciation and impairment difference of property, plant and equipment and solar power systems 19,647 23,380 Accrued liabilities related to antidumping, countervailing and other duty costs and true-up charges 9,341 496 Deferred tax assets relating to sales of solar power systems 481 8,927 Net operating losses carry-forward 90,536 112,710 Unrealized foreign exchange loss and capital loss 9,471 7,064 Interest limitation 13,520 2,767 Others 13,947 26,415 Total deferred tax assets, gross 202,082 222,268 Valuation allowance (76,522) (70,627) Total deferred tax assets, net of valuation allowance 125,560 151,641 Deferred tax liabilities: Derivative assets 2,697 217 Depreciation difference of property, plant and equipment 1,212 18,789 Deferred profit of projects 4,108 — Insurance recoverable 14,838 15,771 Unrealized foreign exchange gain 4,803 10,984 Others 12,513 8,380 Total deferred tax liabilities 40,171 54,141 Net deferred tax assets 85,389 97,500 Analysis as: Deferred tax assets 121,087 153,963 Deferred tax liabilities (35,698) (56,463) Net deferred tax assets 85,389 97,500 |
Schedule of movement of the valuation allowance | Years Ended December 31, 2017 2018 2019 $ $ $ Beginning balance 71,469 65,399 76,522 Additions (Reversals) (5,361) 11,051 (6,156) Foreign exchange effect (709) 72 261 Ending balance 65,399 76,522 70,627 |
Schedule of reconciliation between the provision for income tax computed by applying Canadian federal and provincial statutory tax rates to income before income taxes and the actual provision and benefit for income taxes | Years Ended December 31, 2017 2018 2019 Combined federal and provincial income tax rate 27 % 27 % 27 % Effect of permanent difference (18) % (11) % (1) % Effect of different tax rate on earnings in other jurisdictions (7) % — % 3 % Effect of tax holiday (2) % (1) % (4) % Unrecognized tax provision — % 4 % (3) % Change in valuation allowance (6) % 7 % (3) % Effect of change in tax rate 39 % (3) % (1) % Others (5) % (3) % 2 % 28 % 20 % 20 % |
Schedule of aggregate amount and per share effect of the tax holiday | Years Ended December 31, 2017 2018 2019 (In Thousands of U.S. Dollars, except per share data) The aggregate amount 2,850 3,089 7,956 Per share — basic 0.05 0.05 0.13 Per share — diluted 0.05 0.05 0.13 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS PER SHARE | |
Schedule of computation of basic and diluted earnings per share | Years Ended December 31, 2017 2018 2019 (In Thousands of U.S. Dollars, except share and per share data) Numerator: Net income attributable to Canadian Solar Inc. — basic $ 99,572 $ 237,070 $ 171,585 Dilutive effect of interest expense of convertible notes 4,649 4,683 975 Net income attributable to Canadian Solar Inc. — diluted $ 104,221 $ 241,753 $ 172,560 Denominator: Denominator for basic calculation — weighted average number of common shares — basic 58,167,004 58,914,540 59,633,855 Diluted effects of share number from share options and RSUs 547,821 543,797 794,526 Dilutive effects of share number from convertible notes 2,833,333 2,833,333 349,315 Denominator for diluted calculation — weighted average number of common shares — diluted 61,548,158 62,291,670 60,777,696 Basic earnings per share $ 1.71 $ 4.02 $ 2.88 Diluted earnings per share $ 1.69 $ 3.88 $ 2.83 |
Schedule of anti-dilutive shares excluded from the computation of diluted earnings per share | Years Ended December 31, 2017 2018 2019 Share options and RSUs 372,743 276,618 41,950 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, plant and equipment | |
Schedule of payment for commitments | Year Ending December 31: $ 2020 9,000 2021 3,000 Total 12,000 |
Solar power system | |
Schedule of payment for commitments | Year Ending December 31: $ 2020 600 2021 200 Total 800 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SEGMENT INFORMATION | |
Summary of Company's revenues and gross profit and income from operations generated from each segment | Years Ended December 31, 2019 MSS Energy Elimination Total $ $ $ $ Net revenues 2,582,635 719,445 (101,497) 3,200,583 Cost of revenues 1,934,062 635,716 (87,692) 2,482,086 Gross profit 648,573 83,729 (13,805) 718,497 Income from operations 279,715 (7,031) (13,805) 258,879 Years Ended December 31, 2018 MSS Energy Elimination Total $ $ $ $ Net revenues 2,413,889 1,575,594 (244,971) 3,744,512 Cost of revenues 1,923,131 1,302,779 (256,480) 2,969,430 Gross profit 490,758 272,815 11,509 775,082 Income from operations 141,609 211,539 11,509 364,657 Years Ended December 31, 2017 MSS Energy Elimination Total $ $ $ $ Net revenues 2,850,859 677,470 (137,936) 3,390,393 Cost of revenues 2,390,686 473,453 (111,344) 2,752,795 Gross profit 460,173 204,017 (26,592) 637,598 Income from operations 136,419 159,518 (26,592) 269,345 |
Summary of the Company's net revenues generated from different geographic locations | Years Ended December 31, 2017 2018 2019 $ $ $ Europe and other regions: —Australia 48,069 232,409 313,167 —Germany 94,066 95,514 109,119 —South Africa 21,916 53,739 93,911 —Spain 13,471 58,811 78,228 —Netherlands 51,357 83,475 68,770 —United Kingdom 48,295 101,479 33,158 —Czech 10,822 17,411 17,717 —Others 68,144 55,730 66,389 356,140 698,568 780,459 The Americas: —United States 628,815 999,144 852,231 —Brazil 388,554 339,964 395,303 —Mexico 5,274 50,004 94,446 —Others 85,519 85,545 60,061 1,108,162 1,474,657 1,402,041 Asia: —Japan 476,946 483,041 372,687 —PRC 874,559 620,520 317,077 —Korea 25,244 46,697 72,552 —India 336,468 145,873 70,893 —United Arab Emirates 91,991 104,467 43,311 —Vietnam 462 4,216 39,268 —Thailand 4,167 23,511 12,753 —Others 116,254 142,962 89,542 1,926,091 1,571,287 1,018,083 Total net revenues 3,390,393 3,744,512 3,200,583 |
Schedule of long-lived assets, including property, plant and equipment, non-current project assets, solar power systems, prepaid land use rights and intangible assets by geographic region | At December 31, At December 31, 2018 2019 $ $ PRC 824,618 835,991 Thailand 168,280 331,931 Japan 233,155 259,197 Australia 61,960 63,143 United States 50,052 60,177 Canada 9,739 14,718 Others 24,899 100,513 Total long-lived assets 1,372,703 1,665,670 |
Summary of the Company's revenues generated from each product or service | Years Ended December 31, 2017 2018 2019 $ $ $ MSS: Solar modules and other solar power products 2,551,509 1,930,701 2,055,249 Solar system kits 84,598 93,253 116,449 EPC services — 62,408 223,423 O&M services 6,938 10,767 19,405 Others ( materials) 69,878 71,789 66,612 Energy: Solar power projects 632,256 1,542,906 668,476 Electricity 29,236 8,735 5,866 Others (EPC and development services) 15,978 23,953 45,103 Total net revenues 3,390,393 3,744,512 3,200,583 |
MAJOR CUSTOMERS (Tables)
MAJOR CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
MAJOR CUSTOMERS | |
Schedule of details of customers accounting for 10% or more of total net revenues | Years Ended December 31, 2017 2018 2019 $ $ $ Company A — 718,341 — |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SHARE-BASED COMPENSATION | |
Schedule of the RSU activity | Weighted Average Number of Grant-Date Shares Fair Value $ Unvested at January 1, 2019 1,781,271 14.18 Granted 706,637 18.05 Vested (696,853) 15.40 Forfeited (131,288) 15.01 Unvested at December 31, 2019 1,659,767 15.26 |
SUMMARY OF PRINCIPAL ACCOUNTI_4
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Allowance for doubtful receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Principal accounting policies: | ||
Prepaid expenses and other current assets | $ 253,542 | $ 289,459 |
Allowance for doubtful receivables | ||
Principal accounting policies: | ||
Prepaid expenses and other current assets | $ 166 | $ 164 |
SUMMARY OF PRINCIPAL ACCOUNTI_5
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Property, plant and equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings | |
Property, plant and equipment | |
Estimated useful lives | 20 years |
Machinery | Minimum | |
Property, plant and equipment | |
Estimated useful lives | 5 years |
Machinery | Maximum | |
Property, plant and equipment | |
Estimated useful lives | 10 years |
Furniture, fixtures and equipment | |
Property, plant and equipment | |
Estimated useful lives | 5 years |
Motor vehicles | |
Property, plant and equipment | |
Estimated useful lives | 5 years |
Solar power systems | Minimum | |
Property, plant and equipment | |
Estimated useful lives | 20 years |
Solar power systems | Maximum | |
Property, plant and equipment | |
Estimated useful lives | 25 years |
SUMMARY OF PRINCIPAL ACCOUNTI_6
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Intangible assets and Prepaid land use rights (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Technical know-how | |
Intangible assets | |
Amortization period | 10 years |
Computer software | Minimum | |
Intangible assets | |
Amortization period | 1 year |
Computer software | Maximum | |
Intangible assets | |
Amortization period | 10 years |
Land use rights | Minimum | |
Intangible assets | |
Amortization period | 20 years |
Land use rights | Maximum | |
Intangible assets | |
Amortization period | 50 years |
SUMMARY OF PRINCIPAL ACCOUNTI_7
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Investments in affiliates, Impairment of long-lived assets, Asset retirement obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||
Impairment of long-lived assets | $ 0 | $ 5,738 | $ 3,686 |
Impairment loss of property, plant and equipment | 21,866 | 30,968 | $ 11,626 |
Asset retirement obligation | $ 26 | $ 43 |
SUMMARY OF PRINCIPAL ACCOUNTI_8
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Revenue recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue recognition: | |||
Inventories | $ 554,070 | $ 262,022 | |
Net revenues | 3,200,583 | 3,744,512 | $ 3,390,393 |
Electricity | |||
Revenue recognition: | |||
Net revenues | 3,900 | 4,700 | $ 10,900 |
Uncollectable Revenue | |||
Revenue recognition: | |||
Inventories | $ 7,700 | $ 9,000 |
SUMMARY OF PRINCIPAL ACCOUNTI_9
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Revenue recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue recognition: | |||
Net revenues | $ 3,200,583 | $ 3,744,512 | $ 3,390,393 |
Recognized at a point in time | MSS | |||
Revenue recognition: | |||
Net revenues | 2,238,310 | 2,095,743 | 2,705,985 |
Recognized at a point in time | Energy | |||
Revenue recognition: | |||
Net revenues | 668,476 | 1,542,906 | 633,195 |
Recognized over time | MSS | |||
Revenue recognition: | |||
Net revenues | 242,828 | 73,175 | 6,938 |
Recognized over time | Energy | |||
Revenue recognition: | |||
Net revenues | $ 50,969 | $ 32,688 | $ 44,275 |
SUMMARY OF PRINCIPAL ACCOUNT_10
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Revenue recognition - Contract assets and liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Contract Assets | ||
Accounts receivables, unbilled | $ 15,256 | $ 38 |
Accounts receivables, unbilled, fluctuation | 15,218 | |
Contract Liabilities | ||
Advances from customers | 134,806 | 39,024 |
Advances from customers, fluctuation | 95,782 | |
Other current liabilities | 20,917 | 51,381 |
Other current liabilities, fluctuation | (30,464) | |
Contract liability | 155,723 | $ 90,405 |
Contract liability, fluctuation | 65,318 | |
Revenue recognized from beginning balance of contract liabilities | 62,000 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | ||
Contract Liabilities | ||
Contract liabilities expected to be recognized | $ 155,700 | |
Period for contract liabilities expected to be realized | 1 year |
SUMMARY OF PRINCIPAL ACCOUNT_11
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Shipping and handling costs, Research and development (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Selling expenses | $ 180,326 | $ 165,402 | $ 156,032 |
Research and development expenses | 47,045 | 44,193 | 28,777 |
Shipping and Handling | |||
Selling expenses | $ 88,079 | $ 69,855 | $ 79,853 |
SUMMARY OF PRINCIPAL ACCOUNT_12
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Other operating income, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue recognition: | |||
Gain on disposal of solar power systems | $ (1,666) | $ (36,098) | $ (27,803) |
Net loss on disposal of property, plant and equipment | 1,227 | 2,565 | 1,960 |
Business interruption insurance compensation | (15,238) | ||
Other operating income, net | (10,536) | (44,546) | (47,554) |
Government grants | |||
Revenue recognition: | |||
Other operating income, net | $ (10,097) | $ (11,013) | $ (6,473) |
SUMMARY OF PRINCIPAL ACCOUNT_13
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Warranty cost (Details) - USD ($) $ in Thousands | May 31, 2009 | Aug. 31, 2011 | Jun. 30, 2009 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Warranty cost | ||||||
Warranty accrual rate for sales of solar modules as a percentage of revenue | 1.00% | |||||
Term of insurance policy over which the insurance premium will be amortized | 1 year | |||||
Unamortized carrying amount of insurance premium | $ 1,486 | $ 1,286 | ||||
Insurance receivable | 79,888 | 75,617 | ||||
Warranty adjustment | 1,446 | |||||
Downward adjustment of other non-current assets | 800 | |||||
Warranty costs (net effect of adjustment) included in cost of revenues | $ 28,044 | $ 13,188 | $ 19,793 | |||
80% initial power capacity | ||||||
Warranty cost | ||||||
Warranty accrual rate for sales of solar modules as a percentage of revenue | 80.70% | |||||
Standard solar modules | ||||||
Warranty cost | ||||||
Term of insurance policy over which the insurance premium will be amortized | 25 years | |||||
Guarantee of solar modules for defects in materials and engineering design, installation and construction | 2 years | |||||
Warranty period of solar modules and products against decline of more than 10% of initial power generation capacity | 10 years | |||||
Warranty period of solar modules and products against decline of more than 20% of initial power generation capacity | 25 years | |||||
Minimum percentage of decline in initial minimum power generation capacity for 10 years | 10.00% | |||||
Minimum percentage of decline in initial minimum power generation capacity for 25 years | 20.00% | |||||
Standard solar modules | Material and workmanship | ||||||
Warranty cost | ||||||
Term of insurance policy over which the insurance premium will be amortized | 10 years | 6 years | 12 years | |||
Standard solar modules | 97 % initial power capacity | ||||||
Warranty cost | ||||||
Warranty accrual rate for sales of solar modules as a percentage of revenue | 97.50% | |||||
Standard solar modules | 93% initial power capacity | ||||||
Warranty cost | ||||||
Warranty accrual rate for sales of solar modules as a percentage of revenue | 0.70% | |||||
Solar Power Project | ||||||
Warranty cost | ||||||
Guarantee of solar modules for defects in materials and engineering design, installation and construction | 10 years | |||||
Bifacial module and double glass module | ||||||
Warranty cost | ||||||
Warranty period of solar modules and products against decline of more than 10% of initial power generation capacity | 30 years | |||||
Minimum | ||||||
Warranty cost | ||||||
Term of insurance policy over which the insurance premium will be amortized | 25 years | |||||
Maximum | ||||||
Warranty cost | ||||||
Term of insurance policy over which the insurance premium will be amortized | 30 years |
SUMMARY OF PRINCIPAL ACCOUNT_14
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Recently issued accounting pronouncements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | ||
Right-of-use assets | $ 37,733 | $ 33,829 |
Lease liabilities | $ 39,485 |
ALLOWANCE FOR DOUBTFUL ACCOUN_3
ALLOWANCE FOR DOUBTFUL ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement of allowances | |||
Beginning of the year | $ 32,733 | ||
Closing balance | 29,545 | $ 32,733 | |
Allowances for accounts receivable, trade | |||
Movement of allowances | |||
Beginning of the year | 32,733 | 32,941 | $ 26,119 |
Allowances made (reversed) during the year, net | (1,386) | 869 | 5,345 |
Accounts written-off against allowances | (309) | (297) | (174) |
Foreign exchange effect | (1,493) | (780) | 1,651 |
Closing balance | 29,545 | 32,733 | 32,941 |
Allowances for advances to suppliers | |||
Movement of allowances | |||
Beginning of the year | 20,926 | 18,762 | 19,527 |
Allowances made (reversed) during the year, net | 738 | 2,287 | (833) |
Accounts written-off against allowances | (1,452) | ||
Foreign exchange effect | 69 | (123) | 68 |
Closing balance | 20,281 | 20,926 | 18,762 |
Allowances for other receivables | |||
Movement of allowances | |||
Beginning of the year | 9,704 | 10,349 | 9,251 |
Allowances made (reversed) during the year, net | 1,919 | (175) | 549 |
Foreign exchange effect | (192) | (470) | 549 |
Closing balance | $ 11,431 | $ 9,704 | $ 10,349 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INVENTORIES | |||
Raw materials | $ 75,722 | $ 47,759 | |
Work-in-process | 74,105 | 46,817 | |
Finished goods | 404,243 | 167,446 | |
Inventories | 554,070 | 262,022 | |
Inventory written down | $ 19,447 | $ 14,646 | $ 17,820 |
PROJECT ASSETS (Details)
PROJECT ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
PROJECT ASSETS | |||
Project assets - Acquisition cost | $ 55,158 | $ 51,635 | |
Project assets - EPC and other cost | 1,031,976 | 1,234,128 | |
Total project assets | 1,087,134 | 1,285,763 | |
Current portion | 604,083 | 933,563 | |
Non-current portion | 483,051 | 352,200 | |
Impairment loss of project assets | $ 20,194 | $ 9,016 | $ 0 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Property, plant and equipment, gross | $ 1,633,316 | $ 1,329,952 | |
Accumulated depreciation | (598,297) | (489,927) | |
Impairment | (45,437) | (30,503) | |
Property, plant and equipment, excluding construction in process, net | 989,582 | 809,522 | |
Construction in process | 56,453 | 75,464 | |
Property, plant and equipment, net | 1,046,035 | 884,986 | |
Depreciation expense | 148,034 | 120,834 | $ 88,931 |
Buildings | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Property, plant and equipment, gross | 453,712 | 441,975 | |
Leasehold improvements | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Property, plant and equipment, gross | 14,225 | 13,058 | |
Machinery | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Property, plant and equipment, gross | 1,074,460 | 785,874 | |
Furniture, fixtures and equipment | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Property, plant and equipment, gross | 64,117 | 64,135 | |
Motor vehicles | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Property, plant and equipment, gross | 6,351 | 6,100 | |
Land | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Property, plant and equipment, gross | $ 20,451 | $ 18,810 |
SOLAR POWER SYSTEMS, NET (Detai
SOLAR POWER SYSTEMS, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, plant and equipment | |||
Accumulated depreciation | $ (22,322) | $ (16,227) | |
Solar power systems, net | 52,957 | 54,898 | |
Depreciation expense | 148,034 | 120,834 | $ 88,931 |
Solar power systems | |||
Property, plant and equipment | |||
Solar power systems, net | 70,449 | 66,641 | |
Depreciation expense | 6,379 | 3,756 | $ 5,683 |
Solar power sysetems under construction | |||
Property, plant and equipment | |||
Solar power systems, net | $ 4,830 | $ 4,484 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INTANGIBLE ASSETS, NET | |||
Gross Carrying Amount | $ 39,633 | $ 28,251 | |
Accumulated Amortization | (16,842) | (13,348) | |
Total intangible assets, net | 22,791 | 14,903 | |
Amortization expense | 5,310 | 4,666 | $ 4,659 |
Expected amortization expense of intangible assets | |||
2020 | 4,400 | ||
2021 | 3,600 | ||
2022 | 3,100 | ||
2023 | 2,500 | ||
2024 and thereafter | 9,200 | ||
Technical know-how | |||
INTANGIBLE ASSETS, NET | |||
Gross Carrying Amount | 1,428 | 2,369 | |
Accumulated Amortization | (1,425) | (1,458) | |
Total intangible assets, net | 3 | 911 | |
Computer software | |||
INTANGIBLE ASSETS, NET | |||
Gross Carrying Amount | 38,205 | 25,882 | |
Accumulated Amortization | (15,417) | (11,890) | |
Total intangible assets, net | $ 22,788 | $ 13,992 |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) - Interest rate swap | 12 Months Ended | |||
Dec. 31, 2016GBP (£)Institution | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2016USD ($) | |
Fair value measurements of the entity's assets or liabilities that are measured at fair value on a recurring basis | ||||
Notional amount | $ 47,400,000 | |||
Derivative liabilities | $ 2,170,000 | |||
Designated as hedging instruments | Cash flow hedge | ||||
Fair value measurements of the entity's assets or liabilities that are measured at fair value on a recurring basis | ||||
Number of financial institutions | Institution | 2 | |||
Notional amount | £ 78,400,000 | $ 96,800,000 | ||
Total notional | $ 399,000,000 |
FAIR VALUE MEASUREMENT - Intere
FAIR VALUE MEASUREMENT - Interest rate swap (Details) - Not designated as hedging instruments - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Effect of fair value of derivative instruments on the consolidated balance sheets | ||
Total derivatives asset | $ 5,547 | $ 7,977 |
Total derivatives liability | 12,322 | 13,698 |
Derivative assets - current | Foreign exchange forward contracts | ||
Effect of fair value of derivative instruments on the consolidated balance sheets | ||
Total derivatives asset | 5,097 | 4,166 |
Derivative assets - current | Foreign exchange option contracts | ||
Effect of fair value of derivative instruments on the consolidated balance sheets | ||
Total derivatives asset | 450 | 1 |
Derivative assets - current | Interest rate swap | ||
Effect of fair value of derivative instruments on the consolidated balance sheets | ||
Total derivatives asset | 594 | |
Derivative assets - non-current | Interest rate swap | ||
Effect of fair value of derivative instruments on the consolidated balance sheets | ||
Total derivatives asset | 3,216 | |
Derivative liabilities - current | Foreign exchange forward contracts | ||
Effect of fair value of derivative instruments on the consolidated balance sheets | ||
Total derivatives liability | 10,127 | 13,480 |
Derivative liabilities - current | Foreign exchange option contracts | ||
Effect of fair value of derivative instruments on the consolidated balance sheets | ||
Total derivatives liability | 25 | $ 218 |
Derivative liabilities - current | Interest rate swap | ||
Effect of fair value of derivative instruments on the consolidated balance sheets | ||
Total derivatives liability | 329 | |
Derivative liabilities - non-current | Interest rate swap | ||
Effect of fair value of derivative instruments on the consolidated balance sheets | ||
Total derivatives liability | $ 1,841 |
FAIR VALUE MEASUREMENT - Gain (
FAIR VALUE MEASUREMENT - Gain (Loss) Recognized in Statements of Operation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effect of derivative instruments on consolidated statements of operations | |||
Gain (loss) on change in fair value of derivatives | $ (22,218) | $ (19,230) | $ (272) |
Foreign exchange forward contracts | |||
Effect of derivative instruments on consolidated statements of operations | |||
Gain (loss) on change in fair value of derivatives | (20,249) | (16,414) | (2,638) |
Foreign exchange option contracts | |||
Effect of derivative instruments on consolidated statements of operations | |||
Gain (loss) on change in fair value of derivatives | (1,022) | (2,023) | |
Warrants | |||
Effect of derivative instruments on consolidated statements of operations | |||
Gain (loss) on change in fair value of derivatives | 711 | ||
Interest rate swap | |||
Effect of derivative instruments on consolidated statements of operations | |||
Gain (loss) on change in fair value of derivatives | $ (947) | $ (793) | $ 1,655 |
FAIR VALUE MEASUREMENT - Carryi
FAIR VALUE MEASUREMENT - Carrying value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
FAIR VALUE MEASUREMENT | |||
Impairment charges for property, plant and equipment | $ 21,866 | $ 30,968 | $ 11,626 |
Carrying value of long-term borrowings | 619,477 | 393,614 | |
Convertible notes | $ 0 | $ 127,400 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
VARIABLE INTEREST ENTITIES | ||
TOTAL ASSETS | $ 5,467,207 | $ 4,892,658 |
Short-term borrowings | 933,120 | 1,027,927 |
Long-term borrowings | 1,019,739 | |
TOTAL LIABILITIES | 4,042,149 | 3,619,813 |
Variable Interest Entity | ||
VARIABLE INTEREST ENTITIES | ||
Project assets | 197,366 | 185,448 |
Other assets | 26,102 | 21,836 |
TOTAL ASSETS | 223,468 | 207,284 |
Short-term borrowings | 139,708 | 9,160 |
Long-term borrowings | 113,973 | |
Other liabilities | 66,569 | 59,476 |
TOTAL LIABILITIES | $ 206,277 | $ 182,609 |
INVESTMENTS IN AFFILIATES (Deta
INVESTMENTS IN AFFILIATES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other investments | ||
Investments in affiliates | $ 152,828 | $ 126,095 |
RE Roserock Holdings LLC ("Roserock") | ||
Other investments | ||
Investments in affiliates | $ 83,034 | $ 62,767 |
Ownership percentage | 49.00% | 49.00% |
Canadian Solar Infrastructure Fund, Inc | ||
Other investments | ||
Investments in affiliates | $ 19,162 | $ 23,990 |
Ownership percentage | 14.66% | 14.66% |
Suzhou Financial Leasing Co., Ltd. | ||
Other investments | ||
Investments in affiliates | $ 16,050 | $ 14,361 |
Ownership percentage | 6.00% | 6.00% |
Others | ||
Other investments | ||
Investments in affiliates | $ 34,582 | $ 24,977 |
Others | Minimum | ||
Other investments | ||
Ownership percentage | 15.00% | 21.00% |
Others | Maximum | ||
Other investments | ||
Ownership percentage | 49.00% | 49.00% |
INVESTMENTS IN AFFILIATES - Tax
INVESTMENTS IN AFFILIATES - Tax equity transactions (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | |
Tax equity transactions | ||||
Gain on disposal of investment in affiliates | $ 1,928 | $ 47,102 | ||
Class A membership interests | ||||
Tax equity transactions | ||||
Receipt of future cash flow distributions (as a percent) | 51.00% | |||
Class B membership interests | ||||
Tax equity transactions | ||||
Receipt of future cash flow distributions (as a percent) | 49.00% | |||
Value wrote down | $ 5,000 | |||
RE Roserock Holdings LLC ("Roserock") | ||||
Tax equity transactions | ||||
Ownership percentage | 49.00% | 49.00% | 49.00% | |
RE Roserock Holdings LLC ("Roserock") | Class A membership interests | ||||
Tax equity transactions | ||||
Interest sold (as a percent) | 100.00% | |||
Proceeds from sale of membership interest | $ 45,000 | |||
RE Roserock Holdings LLC ("Roserock") | Class B membership interests | ||||
Tax equity transactions | ||||
Ownership percentage | 100.00% |
INVESTMENTS IN AFFILIATES - Oth
INVESTMENTS IN AFFILIATES - Other investments (Details) $ in Thousands | Sep. 08, 2015USD ($)item | Sep. 30, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Other investments | |||||
Cash consideration for acquisition of the entity | $ 7,684 | $ 11,036 | $ 92,925 | ||
Equity in earnings (loss) of unconsolidated investees | 28,948 | 5,908 | 9,411 | ||
Impairment of long-lived assets | $ 0 | $ 5,738 | $ 3,686 | ||
Suzhou Financial Leasing Co., Ltd. | |||||
Other investments | |||||
Ownership percentage | 6.00% | 6.00% | |||
Board members designated | item | 1 | ||||
Total board members | item | 5 | ||||
Cash consideration for acquisition of the interest | $ 13,860 | ||||
Voting interest hold (as a percent) | 6.00% | ||||
Canadian Solar Infrastructure Fund, Inc | |||||
Other investments | |||||
Ownership percentage | 14.66% | 14.66% | |||
Now, Inc. | |||||
Other investments | |||||
Ownership percentage | 10.00% | ||||
Impairment of long-lived assets | $ 700 |
LEASE - Lease expense (Details)
LEASE - Lease expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finance lease cost: | |||
Amortization of right-of-use assets | $ 18,900 | ||
Interest on lease liabilities | 3,213 | ||
Operating lease cost | 17,619 | ||
Short term lease cost | 8,920 | ||
Total lease cost | $ 45,916 | ||
Operating lease expenses | $ 20,900 | $ 19,800 | |
Finance lease expenses | $ 24,700 | $ 19,100 |
LEASE - Cash flow (Details)
LEASE - Cash flow (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
LEASE | |
Operating cash flows from finance leases | $ 3,213 |
Operating cash flows from operating leases | 15,866 |
Financing cash flows from finance lease | 33,614 |
Right-of-use assets obtained in exchange of new finance lease liabilities | 7,300 |
Right-of-use assets obtained in exchange of new operating leases | $ 18,222 |
LEASE - Additional information
LEASE - Additional information (Details) | Dec. 31, 2019 |
LEASE | |
Weighted average term - finance leases | 1 year 4 months 28 days |
Weighted average term - operating lease | 3 years 11 days |
Weighted average discount rate - finance lease | 5.82% |
Weighted average discount rate - operating lease | 4.36% |
LEASE - Operating leases - Matu
LEASE - Operating leases - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Maturities of operating leases | ||
2020 | $ 18,953 | |
2021 | 12,980 | |
2022 | 4,666 | |
2023 | 2,541 | |
2024 | 1,077 | |
Thereafter | 1,504 | |
Total future minimum lease payments | $ 41,721 | |
Year Ending December 31: | ||
2019 | $ 18,287 | |
2020 | 11,790 | |
2021 | 9,379 | |
2022 | 2,485 | |
2023 | 838 | |
Thereafter | 7,743 | |
Total future minimum lease payments | $ 50,522 |
LEASE - Operating leases - Gros
LEASE - Operating leases - Gross difference (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating leases, gross difference | |
Total future minimum lease payments | $ 41,721 |
Less: imputed interest | 2,236 |
NPV for future minimum lease payments | $ 39,485 |
LEASE - Finance leases - Maturi
LEASE - Finance leases - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Maturities of finance leases | ||
2020 | $ 27,439 | |
2021 | 13,087 | |
2022 | 604 | |
Total future minimum lease payments | $ 41,130 | |
Year Ending December 31: | ||
2019 | $ 40,945 | |
2020 | 23,483 | |
2021 | 11,842 | |
2022 | 556 | |
Total future minimum lease payments | $ 76,826 |
LEASE - Finance leases - Gross
LEASE - Finance leases - Gross difference (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finance leases, gross difference | ||
Total future minimum lease payments | $ 41,130 | |
Less: imputed interest | 2,056 | |
NPV for future minimum lease payments | $ 39,074 | |
Total future minimum lease payments | $ 76,826 | |
Less: imputed interest | 5,024 | |
NPV for future minimum lease payments | $ 71,802 |
LEASE - Total leases - Maturiti
LEASE - Total leases - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
LEASE | ||
2020 | $ 46,392 | |
2021 | 26,066 | |
2022 | 5,270 | |
2023 | 2,541 | |
2024 | 1,077 | |
Thereafter | 1,504 | |
Total future minimum lease payments | $ 82,851 | |
2019 | $ 59,232 | |
2020 | 35,273 | |
2021 | 21,221 | |
2022 | 3,041 | |
2023 | 838 | |
Thereafter | 7,743 | |
Total future minimum lease payments | $ 127,348 |
LEASE - Total leases - Gross di
LEASE - Total leases - Gross difference (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
LEASE | ||
Total future minimum lease payments | $ 82,851 | |
Less: imputed interest | 4,292 | |
NPV for future minimum lease payments | $ 78,559 | |
Total future minimum lease payments | $ 127,348 | |
Less: imputed interest | 5,024 | |
NPV for future minimum lease payments | $ 71,802 |
LEASE - Total leases - Summary
LEASE - Total leases - Summary (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases | |
Short-term | $ 44,765 |
Long-term | 33,794 |
Total lease liabilities | 78,559 |
Operating lease liabilities, current | 18,767 |
Operating lease liabilities, noncurrent | 20,718 |
Total operating lease liabilities | 39,485 |
Finance lease liabilities, current | 25,998 |
Finance lease liabilities, noncurrent | 13,076 |
Total Finance lease liabilities | $ 39,074 |
BORROWINGS (Details)
BORROWINGS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Oct. 31, 2018 | |
BANK BORROWINGS | |||
Short-term | $ 819,031 | $ 856,876 | |
Long-term, current portion | 114,089 | 171,051 | |
Short-term Debt, Total | 933,120 | 1,027,927 | |
Long-term borrowings on project assets - current | 286,173 | 265,770 | |
Long-term borrowings | 619,477 | 393,614 | |
Total | 1,838,770 | $ 1,687,311 | |
Secured short-term borrowings | 708,787 | ||
Secured long-term borrowings, Current | 283,409 | ||
Secured long-term borrowings | 513,622 | ||
Carrying value of property, plant and equipment that serve as collateral for short-term and long-term borrowings | 192,103 | ||
Carrying value of inventories that serve as collateral for short-term and long-term borrowings | 55,955 | ||
Carrying value of prepaid land use rights that serve as collateral for short-term and long-term borrowings | 28,763 | ||
Carrying value of restricted cash that serve as collateral for short-term and long-term borrowings | 138,950 | ||
Carrying value of accounts receivable that serve as collateral for short-term and long-term borrowings | 226,938 | ||
Carrying value of equity that serve as collateral for short-term and long-term borrowings | 373,751 | ||
Carrying value of project assets and solar power systems that serve as collateral for short-term and long-term borrowings | 579,695 | ||
Borrowings from non-banking institutions | |||
BANK BORROWINGS | |||
Maximum borrowing capacity | $ 93,975 | ||
Amount drawn of bank credit facilities granted | 93,975 | ||
Credit facility | |||
BANK BORROWINGS | |||
Maximum borrowing capacity | 2,331,226 | ||
Available amount of credit facilities | 579,545 | ||
Non-binding bank credit facilities | |||
BANK BORROWINGS | |||
Maximum borrowing capacity | $ 513,566 |
BORROWINGS - Short term (Detail
BORROWINGS - Short term (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
BORROWINGS | ||
Short-term | $ 819,031 | $ 856,876 |
Long-term, current portion | 114,089 | 171,051 |
Short-term borrowings | $ 933,120 | $ 1,027,927 |
BORROWINGS - Long term (Details
BORROWINGS - Long term (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
BORROWINGS | ||
Long-term borrowings on project assets - current | $ 286,173 | $ 265,770 |
Long-term borrowings | 619,477 | 393,614 |
Long-term, current portion | $ 114,089 | $ 171,051 |
Average interest rate on long-term borrowings (as a percent) | 8.28% | 0.95% |
Future principal repayment on the long-term borrowings loans | ||
2020 | $ 400,262 | |
2021 | 245,927 | |
2022 | 276,675 | |
2023 | 40,679 | |
2024 | 15,158 | |
Thereafter | 41,038 | |
Total | 1,019,739 | |
Less: future principal repayment related to long-term borrowings, current portion | (400,262) | |
Total long-term portion | $ 619,477 | $ 393,614 |
BORROWINGS - Long term narrativ
BORROWINGS - Long term narrative and interest expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||||||||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Oct. 11, 2019USD ($) | Jul. 15, 2019USD ($) | Jun. 28, 2019JPY (¥) | Jun. 28, 2019USD ($) | Jan. 31, 2019JPY (¥) | Jan. 25, 2019USD ($) | Oct. 31, 2018USD ($) | Sep. 14, 2018USD ($) | Apr. 05, 2018USD ($) | Mar. 30, 2018USD ($) | Mar. 26, 2018USD ($) | |
BORROWINGS | ||||||||||||||
Floating interest rate (as a percent) | 5.43% | 3.13% | ||||||||||||
Interest expense | ||||||||||||||
Interest capitalized - project assets | $ 10,794 | $ 15,462 | $ 13,274 | |||||||||||
Interest capitalized - property, plant, and equipment | 2,620 | 1,182 | 1,010 | |||||||||||
Interest expense | 81,326 | 106,032 | 117,971 | |||||||||||
Total interest incurred | 94,740 | $ 122,676 | $ 132,255 | |||||||||||
Credit facility | ||||||||||||||
BORROWINGS | ||||||||||||||
Maximum borrowing capacity | $ 2,331,226 | |||||||||||||
Unsecured | ||||||||||||||
BORROWINGS | ||||||||||||||
Floating interest rate (as a percent) | 4.86% | 4.58% | ||||||||||||
Secured by project assets and solar power systems | ||||||||||||||
BORROWINGS | ||||||||||||||
Floating interest rate (as a percent) | 3.65% | 4.61% | ||||||||||||
Finance agreement | ||||||||||||||
BORROWINGS | ||||||||||||||
Maximum borrowing capacity | ¥ | ¥ 5,989 | |||||||||||||
Outstanding balance | $ 1,503 | |||||||||||||
Bank borrowings | Subsidiary | ||||||||||||||
BORROWINGS | ||||||||||||||
Maximum borrowing capacity | $ 123,708 | |||||||||||||
Outstanding balance | $ 123,708 | |||||||||||||
Bank borrowings | Secured by Inventory and accounts receivable | ||||||||||||||
BORROWINGS | ||||||||||||||
Maximum borrowing capacity | ¥ | ¥ 8,476 | |||||||||||||
Outstanding balance | 8,476 | |||||||||||||
Bank borrowings | Unsecured | ||||||||||||||
BORROWINGS | ||||||||||||||
Maximum borrowing capacity | $ 49,290 | |||||||||||||
Outstanding balance | 11,881 | |||||||||||||
Bank borrowings | Secured by project assets and solar power systems | ||||||||||||||
BORROWINGS | ||||||||||||||
Maximum borrowing capacity | $ 50,000 | |||||||||||||
Outstanding balance | 50,000 | |||||||||||||
Bank borrowings | Secured by project assets and solar power systems | Subsidiary | ||||||||||||||
BORROWINGS | ||||||||||||||
Maximum borrowing capacity | $ 43,003 | |||||||||||||
Outstanding balance | 34,188 | |||||||||||||
Borrowings from non-banking institutions | ||||||||||||||
BORROWINGS | ||||||||||||||
Maximum borrowing capacity | $ 93,975 | |||||||||||||
Outstanding balance | 93,975 | |||||||||||||
Borrowings from non-banking institutions | Subsidiary | ||||||||||||||
BORROWINGS | ||||||||||||||
Maximum borrowing capacity | $ 110,000 | |||||||||||||
Outstanding balance | 91,095 | |||||||||||||
Borrowings from non-banking institutions | Secured by prepaid land use rights and guaranteed by Chinese Subsidiary | ||||||||||||||
BORROWINGS | ||||||||||||||
Maximum borrowing capacity | $ 129,010 | |||||||||||||
Outstanding balance | $ 40,136 | |||||||||||||
Borrowings from non-banking institutions | Finance agreement | ||||||||||||||
BORROWINGS | ||||||||||||||
Maximum borrowing capacity | $ 60,000 | |||||||||||||
Outstanding balance | $ 60,000 |
SHORT-TERM NOTES PAYABLE (Detai
SHORT-TERM NOTES PAYABLE (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
SHORT-TERM NOTES PAYABLE | ||
Short-term notes payable | $ 544,991 | $ 369,722 |
ACCRUED WARRANTY COSTS (Details
ACCRUED WARRANTY COSTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
ACCRUED WARRANTY COSTS | |||
Beginning balance | $ 50,605 | $ 55,659 | $ 61,139 |
Warranty provision | 28,044 | 13,188 | 19,793 |
Warranty costs incurred | (23,282) | (16,732) | (26,552) |
Foreign exchange effect | 511 | (1,510) | 1,279 |
Ending balance | $ 55,878 | $ 50,605 | $ 55,659 |
RESTRICTED NET ASSETS (Details)
RESTRICTED NET ASSETS (Details) $ in Millions | Dec. 31, 2019USD ($) |
RESTRICTED NET ASSETS | |
Minimum percentage of the profit after tax to be appropriated to the general reserve | 10.00% |
Restricted net assets | $ 497.2 |
CONVERTIBLE NOTES (Details)
CONVERTIBLE NOTES (Details) | Feb. 18, 2014USD ($) | Feb. 28, 2019USD ($) | Dec. 31, 2019USD ($)itemD$ / shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
CONVERTIBLE NOTES | |||||
Convertible notes | $ 0 | $ 127,400,000 | |||
Carrying value of convertible notes | 127,428,000 | ||||
Repayment of outstanding balance | $ 127,500,000 | ||||
2014 Notes | |||||
CONVERTIBLE NOTES | |||||
Proceeds from initial issuance of convertible notes | $ 130,000,000 | ||||
Period of option for additional issuance | 30 days | ||||
Proceeds from additional issuance of convertible notes | $ 20,000,000 | ||||
Interest rate (as a percent) | 4.25% | ||||
Conversion rate | 22.2222 | ||||
Conversion rate initial principal amount | $ 1,000,000 | ||||
Conversion price (in dollars per share) | $ / shares | $ 45 | ||||
Sales price of common stock as percentage of conversion price for redemption at Company's option | 130.00% | ||||
Number of trading days that threshold percentage exceeds stock price for trigger of redemption at Company's option | item | 20 | ||||
Period of consecutive trading days that the threshold of trading days must fall within for trigger of redemption at Company's option | D | 30 | ||||
Redemption prices as percentage of outstanding principal amount plus accrued and unpaid interest following occurrence of certain tax related events | 100.00% | ||||
Carrying value of convertible notes | $ 0 | 127,428,000 | |||
Unamortized issuance costs | $ 0 | 72,000,000 | |||
Effective interest rate (as a percent) | 4.96% | ||||
Amortization of financing costs | $ 71,800 | 953,000 | $ 907,000 | ||
Interest expense | $ 903,000 | 5,419,000 | |||
Repayment of outstanding balance | $ 127,500,000 | ||||
2014 Notes | Other payables | |||||
CONVERTIBLE NOTES | |||||
Accrued interest | $ 2,008,000 |
INCOME TAXES - Provision for in
INCOME TAXES - Provision for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income before income taxes | |||
Income before income taxes | $ 208,621 | $ 304,400 | $ 143,934 |
Current tax | |||
Current tax | 56,685 | 18,375 | (38,261) |
Deferred tax | |||
Deferred tax | (14,619) | 43,594 | 79,212 |
Total income tax expense | |||
Total income tax expense | 42,066 | 61,969 | 40,951 |
Canada | |||
Income before income taxes | |||
Income before income taxes | (61,880) | 10,570 | (30,524) |
Current tax | |||
Current tax | (3,420) | (1,846) | 346 |
Deferred tax | |||
Deferred tax | (6,558) | 12,117 | (6,464) |
Total income tax expense | |||
Total income tax expense | (9,978) | 10,271 | (6,118) |
United States | |||
Income before income taxes | |||
Income before income taxes | 8,319 | 61,377 | (33,205) |
Current tax | |||
Current tax | (4,803) | (14,786) | (54,482) |
Deferred tax | |||
Deferred tax | (2,412) | 32,696 | 67,426 |
Total income tax expense | |||
Total income tax expense | (7,215) | 17,910 | 12,944 |
PRC | |||
Income before income taxes | |||
Income before income taxes | 204,632 | 178,050 | 173,266 |
Current tax | |||
Current tax | 44,622 | 27,285 | (7,383) |
Deferred tax | |||
Deferred tax | (5,333) | 2,653 | 23,452 |
Total income tax expense | |||
Total income tax expense | 39,289 | 29,938 | 16,069 |
Japan | |||
Income before income taxes | |||
Income before income taxes | 29,335 | 27,555 | 28,164 |
Current tax | |||
Current tax | 13,229 | 5,325 | 31,266 |
Deferred tax | |||
Deferred tax | (2,953) | (3,381) | (4,499) |
Total income tax expense | |||
Total income tax expense | 10,276 | 1,944 | 26,767 |
Others | |||
Income before income taxes | |||
Income before income taxes | 28,215 | 26,848 | 6,233 |
Current tax | |||
Current tax | 7,057 | 2,397 | (8,008) |
Deferred tax | |||
Deferred tax | 2,637 | (491) | (703) |
Total income tax expense | |||
Total income tax expense | $ 9,694 | $ 1,906 | $ (8,711) |
INCOME TAXES - Domestic federal
INCOME TAXES - Domestic federal statutory tax rates (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Income taxes: | ||||
Federal and provincial income tax rate (as a percent) | 27.00% | 27.00% | 27.00% | |
Amount of interest and penalties accrued related to unrecognized tax benefits | $ 4,795 | $ 4,398 | ||
Changes to the company's liabilities for uncertain tax positions | ||||
Beginning balance | 15,730 | 6,181 | $ 5,684 | |
Addition for tax positions related to the current year | 11 | 9,806 | 1,376 | |
Reductions for tax positions from prior years/Statute of limitations expirations | (5,720) | (1,094) | ||
Foreign exchange effect | 536 | 215 | ||
Foreign exchange effect | (257) | |||
Ending balance | $ 10,557 | $ 15,730 | $ 6,181 | $ 5,684 |
Canada | ||||
Income taxes: | ||||
Federal and provincial income tax rate (as a percent) | 26.50% | 26.50% | 26.50% | |
Canada | Canadian Solar Solutions Inc. | ||||
Income taxes: | ||||
Federal and provincial income tax rate (as a percent) | 25.00% | 25.00% | 25.00% | |
United States | Canadian Solar (USA) Inc. | ||||
Income taxes: | ||||
Income tax rate (as a percent) | 22.89% | 24.82% | 38.61% | |
United States | Canadian Solar Energy Acquisition Co. | ||||
Income taxes: | ||||
Income tax rate (as a percent) | 27.89% | 25.32% | 38.32% | |
Japan | Canadian Solar Japan K.K. | ||||
Income taxes: | ||||
Income tax rate (as a percent) | 31.78% | 32.02% | 32.02% | |
Germany | Canadian Solar EMEA GmbH | ||||
Income taxes: | ||||
Income tax rate (as a percent) | 33.00% | 33.00% | 33.00% | |
Vietnam | Canadian Solar Manufacturing Vietnam Co., Ltd | ||||
Income taxes: | ||||
Income tax rate (as a percent) | 10.00% | |||
Reduced income tax rate from 2020 to 2028 (as a percent) | 5.00% | |||
Thailand | Canadian Solar Manufacturing (Thailand) Co., Ltd. | ||||
Income taxes: | ||||
Income tax rate (as a percent) | 20.00% | |||
Number of Board of Investment certificates for tax exemption | item | 2 | |||
Hong Kong | HKSI | ||||
Income taxes: | ||||
Income tax rate (as a percent) | 16.50% | 16.50% | 16.50% |
INCOME TAXES - Deferred tax ass
INCOME TAXES - Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||||
Accrued warranty costs | $ 8,326 | $ 9,424 | ||
Bad debt allowance | 10,324 | 7,019 | ||
Inventory write-down | 1,128 | 1,723 | ||
Future deductible expenses | 20,731 | 26,973 | ||
Depreciation and impairment difference of property, plant and equipment and solar power systems | 23,380 | 19,647 | ||
Accrued liabilities related to antidumping, countervailing and other duty costs and true-up charges | 496 | 9,341 | ||
Deferred tax assets relating to sales of solar power systems | 8,927 | 481 | ||
Net operating losses carry-forward | 112,710 | 90,536 | ||
Unrealized foreign exchange loss and capital loss | 7,064 | 9,471 | ||
Interest limitation | 2,767 | 13,520 | ||
Others | 26,415 | 13,947 | ||
Total deferred tax assets, gross | 222,268 | 202,082 | ||
Valuation allowance | (70,627) | (76,522) | ||
Total deferred tax assets, net of valuation allowance | 151,641 | 125,560 | ||
Deferred tax liabilities: | ||||
Derivative assets | 217 | 2,697 | ||
Depreciation difference of property, plant and equipment | 18,789 | 1,212 | ||
Deferred profit of projects | 4,108 | |||
Insurance recoverable | 15,771 | 14,838 | ||
Unrealized FX gain | 10,984 | 4,803 | ||
Others | 8,380 | 12,513 | ||
Total deferred tax liabilities | 54,141 | 40,171 | ||
Analysis as: | ||||
Deferred tax assets | 153,963 | 121,087 | ||
Deferred tax liabilities | (56,463) | (35,698) | ||
Net deferred tax assets | 97,500 | 85,389 | ||
Accumulated net operating losses | 670,541 | |||
Accumulated net operating losses subject to expiration between 2020 and 2038 | 186,360 | |||
Allowance | ||||
Deferred tax assets: | ||||
Valuation allowance | $ (70,627) | $ (76,522) | $ (65,399) | $ (71,469) |
INCOME TAXES - Reconciliation (
INCOME TAXES - Reconciliation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation between the provision for income tax computed by applying Canadian federal and provincial statutory tax rates to income before income taxes and the actual provision and benefit for income taxes | |||
Combined federal and provincial income tax rate (as a percent) | 27.00% | 27.00% | 27.00% |
Effect of permanent difference (as a percent) | (1.00%) | (11.00%) | (18.00%) |
Effect of different tax rate on earnings in other jurisdictions (as a percent) | 3.00% | (7.00%) | |
Effect of tax holiday (as a percent) | (4.00%) | (1.00%) | (2.00%) |
Unrecognized tax provision (as a percent) | (3.00%) | 4.00% | |
Change in valuation allowance (as a percent) | (3.00%) | 7.00% | (6.00%) |
Effect of change in tax rate | (1.00%) | (3.00%) | 39.00% |
Others (as a percent) | 2.00% | (3.00%) | (5.00%) |
Actual income tax rate (as a percent) | 20.00% | 20.00% | 28.00% |
Additional disclosure | |||
Withholding income tax rate on dividends distributed by foreign invested enterprises (as a percent) | 10.00% | ||
Undistributed earnings of subsidiaries and affiliates considered to be permanently reinvested | $ 625,900,000 | ||
Provision for withholding income tax on dividend | $ 0 | ||
Preferential withholding tax rate (as a percent) | 5.00% | ||
Aggregate amount and per share effect of the tax holiday | |||
The aggregate amount (in dollars) | $ 7,956,000 | $ 3,089,000 | $ 2,850,000 |
Per share effect - basic (in dollars per share) | $ 0.13 | $ 0.05 | $ 0.05 |
Per share effect - diluted (in dollars per share) | $ 0.13 | $ 0.05 | $ 0.05 |
Minimum | |||
Additional disclosure | |||
Unrecognized deferred tax liabilities | $ 31,300,000 | ||
Withholding tax rate (as a percent) | 5.00% | ||
Maximum | |||
Additional disclosure | |||
Unrecognized deferred tax liabilities | $ 62,600,000 | ||
Withholding tax rate (as a percent) | 10.00% |
INCOME TAXES - Movement of the
INCOME TAXES - Movement of the valuation allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement of allowances | |||
Beginning of the year | $ 76,522 | ||
End of the year | 70,627 | $ 76,522 | |
Allowance | |||
Movement of allowances | |||
Beginning of the year | 76,522 | 65,399 | $ 71,469 |
Additions (Reversals) | (6,156) | 11,051 | (5,361) |
Foreign exchange effect | 261 | 72 | (709) |
End of the year | $ 70,627 | $ 76,522 | $ 65,399 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Computation of basic and diluted gain (loss) per share | |||
Net income attributable to Canadian Solar Inc. - basic (in dollars) | $ 171,585 | $ 237,070 | $ 99,572 |
Dilutive effect of interest expense of convertible notes | 975 | 4,683 | 4,649 |
Net income attributable to Canadian Solar Inc. - diluted | $ 172,560 | $ 241,753 | $ 104,221 |
Denominator for basic calculation - weighted average number of common shares - basic | 59,633,855 | 58,914,540 | 58,167,004 |
Diluted effects of share number from share options and RSUs | 794,526 | 543,797 | 547,821 |
Dilutive effects of share number from convertible notes | 349,315 | 2,833,333 | 2,833,333 |
Denominator for diluted calculation - weighted average number of common shares - diluted | 60,777,696 | 62,291,670 | 61,548,158 |
Basic earnings per share (in dollars per share) | $ 2.88 | $ 4.02 | $ 1.71 |
Diluted earnings per share (in dollars per share) | $ 2.83 | $ 3.88 | $ 1.69 |
Share options and RSUs | |||
Computation of basic and diluted gain (loss) per share | |||
Anti-dilutive shares excluded from the computation of diluted earnings per share, total | 41,950 | 276,618 | 372,743 |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Details) ¥ in Thousands, ¥ in Thousands, R in Thousands, $ in Thousands | 12 Months Ended | |||||||||||||
Dec. 31, 2019JPY (¥)itemshares | Dec. 31, 2019USD ($)itemshares | Dec. 31, 2019CNY (¥)itemshares | Dec. 31, 2019ZAR (R)itemshares | Dec. 31, 2018JPY (¥)itemshares | Dec. 31, 2018USD ($)itemshares | Dec. 31, 2018CNY (¥)itemshares | Dec. 31, 2017JPY (¥)itemshares | Dec. 31, 2017USD ($)itemshares | Dec. 31, 2017CNY (¥)itemshares | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Sep. 30, 2017USD ($) | |
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||
Amount due from related party | $ 31,232 | $ 16,740 | ||||||||||||
Trade receivable from affiliate | 13,930 | |||||||||||||
Amounts due to related parties | 10,077 | 16,847 | ||||||||||||
Revenue from sale of solar products | $ 99,470 | $ 119,825 | $ 168,465 | |||||||||||
RSUs | ||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||
Granted (in shares) | shares | 706,637 | 706,637 | 706,637 | 706,637 | 759,702 | 759,702 | 759,702 | 1,033,001 | 1,033,001 | 1,033,001 | ||||
Roserock | ||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||
Membership interests owned (as a percent) | 49.00% | 49.00% | ||||||||||||
Pilipinas Newton Energy Corp | ||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||
Cash funding from affiliate | $ 16 | |||||||||||||
Membership interests owned (as a percent) | 40.00% | 40.00% | ||||||||||||
ET Solutions South Africa 1 Pty | ||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||
Amount due from related party | $ 0 | |||||||||||||
Receivables from affiliate | $ 17,284 | |||||||||||||
Membership interests owned (as a percent) | 49.00% | 49.00% | ||||||||||||
Revenue from sale of solar products | $ 40,970 | R 586,832 | $ 6,859 | ¥ 45,407 | ||||||||||
Percentage of ownership after sale transaction | 49.00% | 49.00% | 49.00% | 49.00% | 49.00% | 49.00% | 49.00% | |||||||
Canadian Solar Infrastructure Fund, Inc | ||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||
Number of solar power plants sold | item | 3 | 3 | 3 | 3 | 5 | 5 | 5 | 13 | 13 | 13 | ||||
Percent of units purchased | 14.66% | 14.66% | 14.66% | 14.66% | 14.66% | 14.66% | 14.66% | 14.66% | 14.66% | 14.66% | ||||
Canadian Solar Infrastructure Fund, Inc | Asset management service | ||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||
Trade payable to affiliate | $ 2 | |||||||||||||
Revenue from providing development services | ¥ 281,094 | 2,573 | ¥ 247,341 | $ 2,210 | ¥ 303,772 | $ 2,699 | ||||||||
Canadian Solar Infrastructure Fund, Inc | O & M Service | ||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||
Revenue from providing development services | 223,598 | 2,052 | 122,529 | 1,105 | 32,119 | 285 | ||||||||
Canadian Solar Infrastructure Fund, Inc | Revenue | ||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||
Revenue from sale of solar products | ¥ 5,889,000 | $ 53,874 | 12,276,404 | 109,597 | 18,426,754 | 163,155 | ||||||||
Canadian Solar Infrastructure Fund, Inc | Other operating income or expense | ||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||
Revenue from sale of solar products | ¥ 89,238 | $ 836 | ¥ 3,148,648 | $ 27,879 | ||||||||||
Suzhou iSilver Materials Co | ||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||
Membership interests owned (as a percent) | 15.00% | 15.00% | ||||||||||||
Trade payable to affiliate | $ 7,884 | |||||||||||||
Percent of units purchased | 14.63% | 14.63% | 14.63% | 14.63% | 14.63% | 14.63% | 14.63% | 14.63% | 14.63% | 14.63% | ||||
Purchase from related party | $ 50,359 | ¥ 350,590 | $ 74,490 | ¥ 512,154 | $ 49,113 | ¥ 331,958 | ||||||||
Suzhou Kzone Equipment Technology Co., Ltd | ||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||
Membership interests owned (as a percent) | 32.00% | |||||||||||||
Payable for equipment purchase | $ 2,138 | |||||||||||||
Percent of units purchased | 32.00% | 32.00% | 32.00% | 32.00% | 32.00% | 32.00% | 32.00% | |||||||
Purchase from related party | $ 8,787 | ¥ 61,174 | $ 6,056 | ¥ 41,635 | ||||||||||
Dr. Shawn Qu | RSUs | ||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||
Granted (in shares) | shares | 26,691 | 26,691 | 26,691 | 26,691 | 83,805 | 83,805 | 83,805 | 77,289 | 77,289 | 77,289 | ||||
Dr. Shawn Qu | Chinese Commercial Banks | ||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||
Maturity term of credit facility | 1 year | 1 year | 1 year | 1 year | 1 year | 1 year | 1 year | 1 year | 1 year | 1 year | ||||
Maximum borrowing capacity | $ 204,000 | $ 185,000 | $ 206,000 | ¥ 1,420,000 | ¥ 1,270,000 | ¥ 1,346,000 | ||||||||
Amounts drawn down | $ 82,937 | $ 155,956 | 135,225 | |||||||||||
Gaochuangte | ||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||
Revenue from sale of solar products | $ 1,648 | ¥ 11,352 | ||||||||||||
Percentage of ownership after sale transaction | 80.00% | 80.00% | 80.00% | |||||||||||
Purchase cost incurred from related party | $ 6,430 | ¥ 44,271 | ||||||||||||
Luoyang Jiwa New Material Technology Co., Ltd [Member] | ||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||
Membership interests owned (as a percent) | 25.00% | 25.00% | ||||||||||||
Trade payable to affiliate | $ 55 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Commitments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Property, plant and equipment | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Commitments | $ 12,000 |
2020 | 9,000 |
2021 | 3,000 |
Total | 12,000 |
Solar power system | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Commitments | 800 |
2020 | 600 |
2021 | 200 |
Total | $ 800 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Contingencies (Details) $ in Millions | 12 Months Ended | 36 Months Ended |
Dec. 31, 2010item | Dec. 31, 2019USD ($) | |
Class Action Lawsuits Filed in New York | ||
Contingencies | ||
Number of subpoenas | 2 | |
Number of lawsuits filed | 6 | |
Countervailing and anti-dumping duties investigation | ||
Contingencies | ||
Period of sunset reviews | 5 years | |
First Administrative Review of Solar 2 | ||
Contingencies | ||
Amount of provision reversed | $ | $ 52.3 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
SEGMENT INFORMATION | |||
Number of principal reportable business segments | segment | 2 | ||
Revenues and gross profit generated from each segment | |||
Net revenues | $ 3,200,583 | $ 3,744,512 | $ 3,390,393 |
Cost of revenues | 2,482,086 | 2,969,430 | 2,752,795 |
Gross profit | 718,497 | 775,082 | 637,598 |
Income from operations | 258,879 | 364,657 | 269,345 |
Operating segment | MSS | |||
Revenues and gross profit generated from each segment | |||
Net revenues | 2,582,635 | 2,413,889 | 2,850,859 |
Cost of revenues | 1,934,062 | 1,923,131 | 2,390,686 |
Gross profit | 648,573 | 490,758 | 460,173 |
Income from operations | 279,715 | 141,609 | 136,419 |
Operating segment | Energy | |||
Revenues and gross profit generated from each segment | |||
Net revenues | 719,445 | 1,575,594 | 677,470 |
Cost of revenues | 635,716 | 1,302,779 | 473,453 |
Gross profit | 83,729 | 272,815 | 204,017 |
Income from operations | (7,031) | 211,539 | 159,518 |
Eliminations | |||
Revenues and gross profit generated from each segment | |||
Net revenues | (101,497) | (244,971) | (137,936) |
Cost of revenues | (87,692) | (256,480) | (111,344) |
Gross profit | (13,805) | 11,509 | (26,592) |
Income from operations | $ (13,805) | $ 11,509 | $ (26,592) |
SEGMENT INFORMATION - Different
SEGMENT INFORMATION - Different geographic locations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | $ 3,200,583 | $ 3,744,512 | $ 3,390,393 |
Total long-lived assets | 1,665,670 | 1,372,703 | |
Europe | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 780,459 | 698,568 | 356,140 |
Australia | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 313,167 | 232,409 | 48,069 |
Total long-lived assets | 63,143 | 61,960 | |
Germany | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 109,119 | 95,514 | 94,066 |
South Africa | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 93,911 | 53,739 | 21,916 |
Spain | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 78,228 | 58,811 | 13,471 |
Netherlands | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 68,770 | 83,475 | 51,357 |
United Kingdom | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 33,158 | 101,479 | 48,295 |
Czech | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 17,717 | 17,411 | 10,822 |
Others | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 66,389 | 55,730 | 68,144 |
The Americas | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 1,402,041 | 1,474,657 | 1,108,162 |
United States | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 852,231 | 999,144 | 628,815 |
Total long-lived assets | 60,177 | 50,052 | |
BRAZIL | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 395,303 | 339,964 | 388,554 |
Canada | |||
Revenues generated by geographic location of customers' headquarter | |||
Total long-lived assets | 14,718 | 9,739 | |
Mexico | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 94,446 | 50,004 | 5,274 |
Others | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 60,061 | 85,545 | 85,519 |
Total long-lived assets | 100,513 | 24,899 | |
Asia | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 1,018,083 | 1,571,287 | 1,926,091 |
Japan | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 372,687 | 483,041 | 476,946 |
Total long-lived assets | 259,197 | 233,155 | |
PRC | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 317,077 | 620,520 | 874,559 |
Total long-lived assets | 835,991 | 824,618 | |
Korea | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 72,552 | 46,697 | 25,244 |
India | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 70,893 | 145,873 | 336,468 |
U.A.E | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 43,311 | 104,467 | 91,991 |
Vietnam | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 39,268 | 4,216 | 462 |
Thailand | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 12,753 | 23,511 | 4,167 |
Total long-lived assets | 331,931 | 168,280 | |
Others | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | $ 89,542 | $ 142,962 | $ 116,254 |
SEGMENT INFORMATION - Each prod
SEGMENT INFORMATION - Each product or service (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues generated from each product | |||
Total net revenues | $ 3,200,583 | $ 3,744,512 | $ 3,390,393 |
MSS | Solar modules and other solar power products | |||
Revenues generated from each product | |||
Total net revenues | 2,055,249 | 1,930,701 | 2,551,509 |
MSS | Solar system kits | |||
Revenues generated from each product | |||
Total net revenues | 116,449 | 93,253 | 84,598 |
MSS | EPC services | |||
Revenues generated from each product | |||
Total net revenues | 223,423 | 62,408 | |
MSS | O&M services | |||
Revenues generated from each product | |||
Total net revenues | 19,405 | 10,767 | 6,938 |
MSS | Others ( materials) | |||
Revenues generated from each product | |||
Total net revenues | 66,612 | 71,789 | 69,878 |
Energy | Solar power projects | |||
Revenues generated from each product | |||
Total net revenues | 668,476 | 1,542,906 | 632,256 |
Energy | Electricity | |||
Revenues generated from each product | |||
Total net revenues | 5,866 | 8,735 | 29,236 |
Energy | Others (EPC and development services) | |||
Revenues generated from each product | |||
Total net revenues | $ 45,103 | $ 23,953 | $ 15,978 |
MAJOR CUSTOMERS (Details)
MAJOR CUSTOMERS (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($)item | |
Major Customers | ||
Number of customers with the largest receivable balances | item | 3 | 3 |
Net revenue | Customer concentration risk | Company A | ||
Major Customers | ||
Total net revenues | $ 718,341 | |
Accounts receivable | Accounts receivable balances | Customer one | ||
Major Customers | ||
Concentration risk (as a percent) | 17.00% | 12.00% |
Accounts receivable | $ 74,376 | $ 59,224 |
Accounts receivable | Accounts receivable balances | Customer two | ||
Major Customers | ||
Concentration risk (as a percent) | 5.00% | 5.00% |
Accounts receivable | Accounts receivable balances | Customer three | ||
Major Customers | ||
Concentration risk (as a percent) | 4.00% | 5.00% |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employer's contribution (as a percent) | 16.00% | ||
Defined contributions schemes expense | $ 11,738 | $ 12,544 | $ 9,412 |
Percentage of applicable salaries contributed by the employer for housing funds | 8.00% | ||
Amount of contribution by the employer for medical insurance benefits, housing funds, unemployment and other statutory benefits | $ 11,409 | $ 11,211 | $ 10,447 |
Minimum | |||
Percentage of applicable salaries contributed by the employer for medical insurance benefits | 6.00% | ||
Percentage of applicable salaries contributed by the employer for unemployment benefits | 0.50% | ||
Percentage of applicable salaries contributed by the employer for other statutory benefits | 0.90% | ||
Maximum | |||
Percentage of applicable salaries contributed by the employer for medical insurance benefits | 8.50% | ||
Percentage of applicable salaries contributed by the employer for unemployment benefits | 0.70% | ||
Percentage of applicable salaries contributed by the employer for other statutory benefits | 2.50% |
SHARE-BASED COMPENSATION - Opti
SHARE-BASED COMPENSATION - Options to Employees (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2010 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
SHARE-BASED COMPENSATION | |||||
Maximum aggregate number of shares to be issued | 2,330,000 | ||||
Annual percentage increase in authorized shares on the first day of each of 2007, 2008 and 2009 prior to the year of amendment for awards other than incentive option shares | 1.00% | ||||
Annual percentage increase in authorized shares on the first day of each calendar year from the year of amendment for awards other than incentive option shares | 2.50% | ||||
Number of shares to be granted after expiration | 0 | ||||
Expiry term of share options | 10 years | ||||
Options | Employees | |||||
SHARE-BASED COMPENSATION | |||||
Option exercised | 103,723 | ||||
Weighted average exercise price of shares exercised (in dollars per share) | $ 8.47 | ||||
Total intrinsic value of options exercised (in dollars) | $ 1,422 | $ 256 | $ 605 | ||
Options outstanding | 120,779 | 120,779 | |||
Weighted average exercise price of options outstanding (in dollars per share) | $ 10.97 | $ 10.97 | |||
Weighted average remaining contract terms of options outstanding (in years) | 1 year | ||||
Intrinsic value of outstanding options (in dollars) | $ 1,344 | ||||
Number of Options | |||||
Exercised (in shares) | (103,723) | ||||
Options outstanding at the end of the period (in shares) | 120,779 | ||||
Weighted Average Exercise Price | |||||
Exercised (in dollars per share) | $ 8.47 | ||||
Options outstanding at the end of the period (in dollars per share) | $ 10.97 | ||||
Weighted Average Remaining Contract Terms | |||||
Options outstanding at the end of the period | 1 year | ||||
Aggregate Intrinsic Value | |||||
Options outstanding at the end of the period | $ 1,344 | ||||
Total intrinsic value of options exercised | $ 1,422 | $ 256 | $ 605 |
SHARE-BASED COMPENSATION - RSUs
SHARE-BASED COMPENSATION - RSUs to Employees (Details) - RSUs - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SHARE-BASED COMPENSATION | |||
Shares granted to employees | 706,637 | 759,702 | 1,033,001 |
Total compensation cost at the date of grant | $ 12,200 | $ 10,200 | $ 13,300 |
Total recognized compensation cost | 10,682 | $ 10,258 | $ 9,314 |
Total unrecognized share-based compensation costs | $ 20,507 | ||
Weighted-average period of recognition of compensation expense | 2 years 3 months 7 days | ||
Number of Shares | |||
Unvested at the beginning of the period (in shares) | 1,781,271 | ||
Granted (in shares) | 706,637 | 759,702 | 1,033,001 |
Vested (in shares) | (696,853) | ||
Forfeited (in shares) | (131,288) | ||
Unvested at the end of the period (in shares) | 1,659,767 | 1,781,271 | |
Weighted Average Grant-Date Fair Value | |||
Unvested at the beginning of the period (in dollars per share) | $ 14.18 | ||
Granted (in dollars per share) | 18.05 | ||
Vested (in dollars per share) | 15.40 | ||
Forfeited (in dollars per share) | 15.01 | ||
Unvested at the end of the period (in dollars per share) | $ 15.26 | $ 14.18 | |
Total fair value of shares vested | $ 10,733 | $ 10,242 | $ 12,091 |
Minimum | |||
SHARE-BASED COMPENSATION | |||
Vesting period | 1 year | ||
Maximum | |||
SHARE-BASED COMPENSATION | |||
Vesting period | 4 years |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 5 Months Ended |
Dec. 31, 2019 | Mar. 31, 2020 | Apr. 28, 2020 | |
SUBSEQUENT EVENTS | |||
Number of shares repurchased | 609,516 | ||
Total cost of share repurchases | $ 11,845 | ||
Subsequent event | |||
SUBSEQUENT EVENTS | |||
Number of shares repurchased | 381,330 | ||
Total cost of share repurchases | $ 5,963 | ||
Subsequent event | Share repurchase plan | |||
SUBSEQUENT EVENTS | |||
Number of shares repurchased | 990,846 |
Financial Statement Schedule I
Financial Statement Schedule I (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Additional Information - Financial Statement Schedule I | |
Restricted net assets of the entity's consolidated and unconsolidated subsidiaries not available for distribution | $ 497.2 |
Threshold percentage of restricted net assets of the entity's consolidated and unconsolidated subsidiaries | 25.00% |
Financial Statement Schedule _2
Financial Statement Schedule I - BALANCE SHEETS (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 668,770 | $ 444,298 |
Accounts receivable trade, net of allowance for doubtful accounts of $3,462 and $3,379 as of December 31, 2018 and 2019, respectively | 436,815 | 498,231 |
Amounts due from subsidiaries | 31,232 | 16,740 |
Prepaid expenses and other current assets | 253,542 | 289,459 |
Total current assets | 3,252,936 | 3,074,321 |
Deferred tax assets, net | 153,963 | 121,087 |
Other non-current assets | 153,253 | 129,605 |
TOTAL ASSETS | 5,467,207 | 4,892,658 |
Current liabilities: | ||
Convertible notes | 127,428 | |
Accounts payable | 585,601 | 379,462 |
Amounts due to related parties | 10,077 | 16,847 |
Derivative liabilities | 10,481 | 13,698 |
Other current liabilities | 121,527 | 141,970 |
Total current liabilities | 3,091,997 | 2,948,357 |
Long-term borrowings | 619,477 | 393,614 |
Deferred tax liabilities | 56,463 | 35,698 |
Liability for uncertain tax positions | 15,353 | 20,128 |
TOTAL LIABILITIES | 4,042,149 | 3,619,813 |
Equity: | ||
Common shares - no par value: unlimited authorized shares, 59,180,624 and 59,371,684 shares issued and outstanding at December 31, 2018 and 2019, respectively | 703,806 | 702,931 |
Additional paid-in capital | 17,179 | 10,675 |
Retained earnings | 793,601 | 622,016 |
Accumulated other comprehensive loss | (109,607) | (110,149) |
Total Canadian Solar Inc. shareholders' equity | 1,393,134 | 1,225,473 |
TOTAL LIABILITIES AND EQUITY | 5,467,207 | 4,892,658 |
Parent Company | Reportable Legal Entities [Member] | ||
Current assets: | ||
Cash and cash equivalents | 1,362 | 9,097 |
Restricted cash | 950 | |
Accounts receivable trade, net of allowance for doubtful accounts of $3,462 and $3,379 as of December 31, 2018 and 2019, respectively | 11,476 | |
Amounts due from subsidiaries | 341,557 | 279,039 |
Prepaid expenses and other current assets | 9,846 | 15,222 |
Total current assets | 353,715 | 314,834 |
Investments in subsidiaries | 1,383,935 | 1,154,004 |
Investments in Affiliates | 2,483 | |
Deferred tax assets, net | 23,657 | 28,208 |
Other non-current assets | 69,070 | 68,068 |
TOTAL ASSETS | 1,832,860 | 1,565,114 |
Current liabilities: | ||
Convertible notes | 127,428 | |
Accounts payable | 3 | 3,903 |
Amounts due to related parties | 340,502 | 154,765 |
Derivative liabilities | 4,713 | 3,879 |
Other current liabilities | 8,531 | 8,255 |
Total current liabilities | 353,749 | 298,230 |
Long-term borrowings | 50,000 | |
Deferred tax liabilities | 22,936 | 28,779 |
Liability for uncertain tax positions | 13,041 | 12,633 |
TOTAL LIABILITIES | 439,726 | 339,642 |
Equity: | ||
Common shares - no par value: unlimited authorized shares, 59,180,624 and 59,371,684 shares issued and outstanding at December 31, 2018 and 2019, respectively | 703,806 | 702,931 |
Treasury stock | (11,845) | |
Additional paid-in capital | 17,179 | 10,675 |
Retained earnings | 793,601 | 622,015 |
Accumulated other comprehensive loss | (109,607) | (110,149) |
Total Canadian Solar Inc. shareholders' equity | 1,393,134 | 1,225,472 |
TOTAL LIABILITIES AND EQUITY | $ 1,832,860 | $ 1,565,114 |
Financial Statement Schedule _3
Financial Statement Schedule I - BALANCE SHEETS Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Condensed Financial Statements | ||
Accounts receivable trade, allowance | $ 29,545 | $ 32,733 |
Common share, par value (in dollars per share) | $ 0 | $ 0 |
Common shares, shares issued (in shares) | 59,371,684 | 59,180,624 |
Common shares, shares outstanding (in shares) | 59,371,684 | 59,180,624 |
Reportable Legal Entities [Member] | Parent Company | ||
Condensed Financial Statements | ||
Accounts receivable trade, allowance | $ 3,379 | $ 3,462 |
Common share, par value (in dollars per share) | $ 0 | |
Common shares, shares issued (in shares) | 59,371,684 | 59,180,624 |
Common shares, shares outstanding (in shares) | 59,371,684 | 59,180,624 |
Financial Statement Schedule _4
Financial Statement Schedule I - STATEMENTS OF OPERATIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements | |||
Net revenues | $ 3,200,583 | $ 3,744,512 | $ 3,390,393 |
Cost of revenues | 2,482,086 | 2,969,430 | 2,752,795 |
Gross profit | 718,497 | 775,082 | 637,598 |
Operating expenses | |||
Selling expenses | 180,326 | 165,402 | 156,032 |
General and administrative expenses | 242,783 | 245,376 | 230,998 |
Research and development expenses | 47,045 | 44,193 | 28,777 |
Other operating loss, net | (10,536) | (44,546) | (47,554) |
Total operating expenses, net | 459,618 | 410,425 | 368,253 |
Income (loss) from operations | 258,879 | 364,657 | 269,345 |
Other income (expenses): | |||
Interest expense | (81,326) | (106,032) | (117,971) |
Interest income | 12,039 | 11,207 | 10,477 |
Loss on change in fair value of derivatives, net | (22,218) | (19,230) | (272) |
Foreign exchange gain (loss) | 10,370 | 6,529 | (23,449) |
Investment loss | 1,929 | 41,361 | (3,607) |
Other income (expenses), net: | (79,206) | (66,165) | (134,822) |
Income (loss) before income taxes and equity in earnings (loss) of subsidiaries and unconsolidated investees | 179,673 | 298,492 | 134,523 |
Income tax (expense) benefit | (42,066) | (61,969) | (40,951) |
Equity in loss of unconsolidated investees | 28,948 | 5,908 | 9,411 |
Net income attributable to Canadian Solar Inc. | 171,585 | 237,070 | 99,572 |
Reportable Legal Entities [Member] | Parent Company | |||
Condensed Financial Statements | |||
Net revenues | 4,351 | 86,755 | 35,011 |
Cost of revenues | 4,188 | 53,926 | 29,542 |
Gross profit | 163 | 32,829 | 5,469 |
Operating expenses | |||
Selling expenses | 1,727 | 2,518 | 2,221 |
General and administrative expenses | 29,093 | 18,970 | 18,390 |
Research and development expenses | 462 | 795 | 645 |
Other operating loss, net | 77 | 1,173 | |
Total operating expenses, net | 31,282 | 22,360 | 22,429 |
Income (loss) from operations | (31,119) | 10,469 | (16,960) |
Other income (expenses): | |||
Interest expense | (3,005) | (9,170) | (20,078) |
Interest income | 25,272 | 32,370 | 42,191 |
Loss on change in fair value of derivatives, net | (5,193) | (2,671) | (7,134) |
Foreign exchange gain (loss) | (11,318) | 22,255 | (18,110) |
Investment loss | (116,879) | (11,944) | |
Other income (expenses), net: | (111,123) | 42,784 | (15,075) |
Income (loss) before income taxes and equity in earnings (loss) of subsidiaries and unconsolidated investees | (142,242) | 53,253 | (32,035) |
Income tax (expense) benefit | 5,230 | (12,133) | 1,686 |
Equity in earnings of subsidiaries | 308,597 | 195,950 | 130,048 |
Equity in loss of unconsolidated investees | (127) | ||
Net income attributable to Canadian Solar Inc. | $ 171,585 | $ 237,070 | $ 99,572 |
Financial Statement Schedule _5
Financial Statement Schedule I - STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements | |||
Net income | $ 166,555 | $ 242,431 | $ 102,983 |
Other comprehensive income (loss) (net of tax of nil): | |||
Foreign currency translation adjustment | 319 | (50,577) | 39,305 |
Comprehensive income attributable to Canadian Solar Inc. | 172,127 | 180,955 | 137,352 |
Reportable Legal Entities [Member] | Parent Company | |||
Condensed Financial Statements | |||
Net income | 171,585 | 237,070 | 99,572 |
Other comprehensive income (loss) (net of tax of nil): | |||
Foreign currency translation adjustment | 542 | (56,115) | 37,780 |
Comprehensive income attributable to Canadian Solar Inc. | $ 172,127 | $ 180,955 | $ 137,352 |
Financial Statement Schedule _6
Financial Statement Schedule I - STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities: | |||
Net income | $ 166,555 | $ 242,431 | $ 102,983 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 159,723 | 129,256 | 99,273 |
Impairment of long-lived assets | 0 | 5,738 | 3,686 |
Loss on change in fair value of derivatives | 22,218 | 19,230 | 272 |
Allowance for doubtful accounts | 1,250 | 2,812 | 7,265 |
Equity in loss of unconsolidated investees | (28,948) | (5,908) | (9,411) |
Share-based compensation | 10,682 | 10,258 | 9,314 |
Changes in operating assets and liabilities: | |||
Accounts receivable trade | 51,670 | (179,607) | 46,337 |
Amounts due from related parties | (17,347) | 9,237 | (10,089) |
Advances to suppliers | (27,066) | 29,001 | (15,990) |
Prepaid expenses and other current assets | 33,283 | (2,208) | (49,813) |
Other non-current assets | (24,037) | 9,387 | (23,795) |
Accounts payable | 209,175 | 47,756 | (27,758) |
Amounts due to related parties | (5,798) | 10,467 | 33,908 |
Other liabilities | (10,851) | (29,691) | (18,774) |
Liability for uncertain tax positions | (4,775) | 10,863 | 833 |
Deferred taxes | (12,455) | 37,591 | 84,939 |
Net settlement of derivatives | (27,012) | 28,731 | (1,460) |
Net cash provided by (used in) operating activities | 600,111 | 216,280 | 203,920 |
Investing activities: | |||
Net cash provided by (used in) investing activities | (294,102) | 29,071 | (239,230) |
Financing activities: | |||
Repayment of short-term borrowings | (1,649,721) | (2,368,967) | (2,068,069) |
Repayment of convertible notes | (127,500) | ||
Proceeds from exercise of stock options | 875 | 769 | 879 |
Net cash provided by (used in) financing activities | (34,614) | (463,613) | 165,283 |
Effect of exchange rate changes | (6,965) | (38,725) | 51,342 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 264,430 | (256,987) | 181,315 |
Cash, cash equivalents and restricted cash at the beginning of the year | 940,990 | 1,190,134 | 1,007,700 |
Cash, cash equivalents and restricted cash at the end of the year | 1,205,420 | 940,990 | 1,190,134 |
Supplemental disclosure of cash flow information: | |||
Interest paid (net of amounts capitalized) | 85,362 | 103,236 | 113,513 |
Income taxes paid | 40,454 | 32,135 | 45,483 |
Parent Company | Reportable Legal Entities [Member] | |||
Operating activities: | |||
Net income | 171,585 | 237,070 | 99,572 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 154 | 21 | 33 |
Loss on disposal of subsidiaries | 116,879 | 9,559 | |
Impairment of long-lived assets | 3,686 | ||
Loss on change in fair value of derivatives | 5,193 | 2,671 | 7,134 |
Allowance for doubtful accounts | (83) | (212) | 2,666 |
Equity in earnings of subsidiaries | (308,597) | (195,950) | (130,048) |
Equity in loss of unconsolidated investees | 127 | ||
Share-based compensation | 10,682 | 10,259 | 9,314 |
Changes in operating assets and liabilities: | |||
Accounts receivable trade | 11,563 | (5,089) | (6,739) |
Amounts due from related parties | (43,630) | (184,755) | 57,539 |
Advances to suppliers | 60 | (60) | |
Prepaid expenses and other current assets | 5,449 | (2,749) | (5,715) |
Other non-current assets | (1,158) | (149) | 1,016 |
Accounts payable | (3,900) | 3,900 | |
Amounts due to related parties | 183,675 | 15,598 | 55,399 |
Other liabilities | 1,193 | (25,958) | 22,436 |
Liability for uncertain tax positions | 408 | 6,008 | 833 |
Deferred taxes | (1,292) | 9,230 | (6,106) |
Net settlement of derivatives | (11,125) | 21,450 | (6,358) |
Net cash provided by (used in) operating activities | 136,996 | (108,595) | 114,288 |
Investing activities: | |||
Investment in subsidiaries | (36,146) | (1,051) | (64,185) |
Investments in affiliates | (2,483) | ||
Proceeds from disposal of subsidiaries | 61,749 | ||
Purchase of property, plant and equipment | 1 | (26) | |
Funding of loans to subsidiaries | (40,601) | (94,000) | (74,458) |
Repayment of loans from subsidiaries | 12,809 | 375,635 | |
Net cash provided by (used in) investing activities | (66,420) | 280,584 | (76,920) |
Financing activities: | |||
Repayment of short-term borrowings | (151,000) | (49,000) | |
Proceeds from long-term borrowings | 50,000 | ||
Repayment of convertible notes | (127,500) | ||
Payments for repurchase of treasury stock | (11,845) | ||
Proceeds from exercise of stock options | 875 | 769 | 879 |
Net cash provided by (used in) financing activities | (88,470) | (150,231) | (48,121) |
Effect of exchange rate changes | 11,110 | (29,618) | 6,362 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (6,784) | (7,860) | (4,391) |
Cash, cash equivalents and restricted cash at the beginning of the year | 9,097 | 16,957 | 21,348 |
Cash, cash equivalents and restricted cash at the end of the year | 2,313 | 9,097 | 16,957 |
Supplemental disclosure of cash flow information: | |||
Interest paid (net of amounts capitalized) | $ 4,644 | $ 10,154 | $ 18,375 |
Appendix 1 - Major Subsidiari_2
Appendix 1 - Major Subsidiaries of CSI (Details) | 12 Months Ended |
Dec. 31, 2019 | |
CSI Cells Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 52.00% |
Interest held as general partner | 0.17% |
Canadian Solar Manufacturing (Changshu) Inc. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 20.00% |
CSI Solartronics (Changshu) Co., Ltd | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
CSI Solar Technologies Inc. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
CSI New Energy Holding Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Manufacturing (Luoyang) Inc. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Manufacturing (Changshu) Inc. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
CSI Cells Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar (USA) Inc. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Japan K.K. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Solutions Inc. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
CSI Solar Power Group Co., Ltd. (formerly named/known as "CSI Solar Power (China) Inc.") | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Interest held as general partner | 0.067% |
CSI Solar Power Group Co., Ltd. (formerly named/known as "CSI Solar Power (China) Inc.") | CSI Cells Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 37.33% |
Canadian Solar EMEA GmbH | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar (Australia) Pty Limited | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar International Limited | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar O and M (Ontario) Inc. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Suzhou Sanysolar Materials Technology Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 99.73% |
Canadian Solar South East Asia Pte. Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar South Africa Pty., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Brazil Commerce, Import and Export of Solar Panels Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Construction (USA) LLC | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Project K.K. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
CSI&GCL Solar Manufacturing (Yancheng) Inc. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar UK Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar UK Projects Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Changsu Tegu New Material Technology Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Changshu Tlian Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Recurrent Energy Group Inc. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Recurrent Energy, LLC | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
PT. Canadian Solar Indonesia | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 67.00% |
Canadian Solar Manufacturing Vietnam Co., Ltd | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Energy Private Limited | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar MSS (Australia) Pty Ltd (formerly named/known as "Canadian Solar Australia 1 Pty Ltd.") | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Energy Holding Company Limited | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Manufacturing (Thailand) Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 99.99992% |
Canadian Solar Sunenergy (Suzhou) Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Energy Holding Singapore Pte. Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Sunenergy (Baotou) Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Suzhou Gaochuangte New Energy Development Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 90.00% |
CSI Cells (Yanchang) Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 48.00% |
CSI Modules (DaFeng) Co., Ltd. | Canadian Solar Manufacturing (Changshu) Inc. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 3.12% |
CSI Modules (DaFeng) Co., Ltd. | CSI Solar Power Group Co., Ltd. (formerly named/known as "CSI Solar Power (China) Inc.") | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 96.88% |
Canadian Solar Middle East DMCC | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
CSI Investment Management (SuZhou) Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Construction (Australia) Pty Ltd | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
CSUK Energy Systems Construction and Generation JSC | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
CSI Modules (JiaXing) Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
CSI Wafer (LuoYang) Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Manufacturing Taiwan Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Argentina Investment Holding Ltd | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Changshu Xingu Photovoltaic Material Technology Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar New Energy Holding Company Limited [Member] | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar Energy Holding Singapore Pte. Ltd. [Member] | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar SSES (Canada) Inc. [Member] | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |
Canadian Solar SSES (UK) Ltd [Member] | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100.00% |