Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021 shares | |
Document Information [Line Items] | |
Entity Central Index Key | 0001375877 |
Document Type | 20-F/A |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2021 |
Securities Act File Number | 001-33107 |
Entity Registrant Name | CANADIAN SOLAR INC. |
Entity Incorporation, State or Country Code | A1 |
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 with no par value |
Trading Symbol | CSIQ |
Security Exchange Name | NASDAQ |
Amendment Flag | true |
Amendment Description | Amendment No. 1 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
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 |
Entity Common Stock, Shares Outstanding | 64,022,678 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
ICFR Auditor Attestation Flag | true |
Auditor Name | Deloitte Touche Tohmatsu Certified Public Accountants LLP |
Auditor Location | Shanghai China |
Auditor Firm ID | 1113 |
Business Contact [Member] | |
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, 2021 | Dec. 31, 2020 | |
Current assets: | |||
Cash and cash equivalents | $ 869,831 | $ 1,178,752 | |
Restricted cash | 560,633 | 458,334 | |
Accounts receivable trade, net of allowance of $40,293 and $47,126 as of December 31, 2020 and 2021, respectively | 651,372 | 408,958 | |
Accounts receivable, unbilled | 37,244 | 28,461 | |
Amounts due from related parties | 73,042 | 5,834 | |
Inventories | 1,192,374 | 695,981 | |
Value added tax recoverable | 125,882 | 102,460 | |
Advances to suppliers, net of allowance of $5,845 and $5,822 as of December 31, 2020 and 2021, respectively | 225,879 | 182,146 | |
Derivative assets | 7,286 | 23,351 | |
Project assets | 594,107 | 747,764 | |
Prepaid expenses and other current assets | 434,177 | 353,781 | |
Total current assets | 4,771,827 | 4,185,822 | |
Restricted cash | 3,818 | 2,629 | |
Property, plant and equipment, net | 1,401,877 | 1,157,731 | |
Solar power systems, net | 108,263 | 158,262 | |
Deferred tax assets, net | 236,503 | 170,656 | |
Advances to suppliers, net of allowance of $13,855 and $13,860 as of December 31, 2020 and 2021, respectively | 34,239 | 97,173 | |
Prepaid land use rights | 71,011 | 62,414 | |
Investments in affiliates | 98,819 | 78,291 | |
Intangible assets, net | 18,992 | 22,429 | |
Project assets | 433,254 | 389,702 | |
Right-of-use assets | 35,286 | 26,793 | |
Other non-current assets | 174,453 | 184,952 | |
TOTAL ASSETS | 7,388,342 | 6,536,854 | |
Current liabilities: | |||
Short-term borrowings, including long-term borrowings - current portion | 1,271,215 | 1,202,285 | |
Long-term borrowings on project assets - current | [1] | 321,655 | 198,794 |
Accounts payable | 502,995 | 514,742 | |
Short-term notes payable | 881,184 | 710,636 | |
Amounts due to related parties | 143 | 314 | |
Other payables | 667,854 | 508,839 | |
Advances from customers | 135,512 | 189,470 | |
Derivative liabilities | 2,622 | 10,755 | |
Operating lease liabilities | 12,185 | 15,204 | |
Other current liabilities | 242,783 | 237,316 | |
Total current liabilities | 4,038,148 | 3,588,355 | |
Accrued warranty costs | 45,146 | 37,732 | |
Long-term borrowings | 523,634 | 446,090 | |
Convertible notes | 224,675 | 223,214 | |
Liability for uncertain tax positions | 7,448 | 14,729 | |
Deferred tax liabilities | 48,150 | 49,080 | |
Loss contingency accruals | 15,148 | 26,458 | |
Operating lease liabilities | 23,215 | 13,232 | |
Financing liabilities | 53,641 | 81,871 | |
Other non-current liabilities | 282,699 | 163,308 | |
TOTAL LIABILITIES | 5,261,904 | 4,644,069 | |
Commitments and contingencies (Note 21) | |||
Equity: | |||
Common shares - no par value: unlimited authorized shares, 59,820,384 and 64,022,678 shares issued and outstanding at December 31, 2020 and 2021, respectively | 835,543 | 687,033 | |
Additional paid-in capital | (19,428) | (28,236) | |
Retained earnings | 1,035,552 | 940,304 | |
Accumulated other comprehensive loss | (50,584) | (28,679) | |
Total Canadian Solar Inc. shareholders' equity | 1,801,083 | 1,570,422 | |
Non-controlling interests in subsidiaries | 325,355 | 322,363 | |
TOTAL EQUITY | 2,126,438 | 1,892,785 | |
TOTAL LIABILITIES AND EQUITY | $ 7,388,342 | $ 6,536,854 | |
[1] Certain long-term borrowings were classified as current liabilities because these borrowings are associated with certain solar and battery storage projects that are expected to be sold within one year. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable trade, allowance | $ 47,126 | $ 40,293 |
Advances to suppliers - current, allowance | 5,822 | 5,845 |
Advances to suppliers - non-current, allowance | $ 13,860 | $ 13,855 |
Common share, par value (in dollars per share) | $ 0 | $ 0 |
Common shares, shares issued (in shares) | 64,022,678 | 59,820,384 |
Common shares, shares outstanding (in shares) | 64,022,678 | 59,820,384 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net revenues: | |||
Net revenues | $ 5,277,169 | $ 3,476,495 | $ 3,200,583 |
Cost of revenues: | |||
Cost of revenues | 4,367,857 | 2,786,581 | 2,482,086 |
Gross profit | 909,312 | 689,914 | 718,497 |
Operating expenses: | |||
Selling and distribution expenses | 398,650 | 224,243 | 180,326 |
General and administrative expenses | 308,942 | 225,597 | 242,783 |
Research and development expenses | 58,407 | 45,167 | 47,045 |
Other operating income, net | (47,068) | (25,523) | (10,536) |
Total operating expenses | 718,931 | 469,484 | 459,618 |
Income from operations | 190,381 | 220,430 | 258,879 |
Other income (expenses): | |||
Interest expense | (58,153) | (71,874) | (81,326) |
Interest income | 11,051 | 9,306 | 12,039 |
Gain (loss) on change in fair value of derivatives, net | 23,785 | 50,001 | (22,218) |
Foreign exchange gain (loss) | (47,234) | (64,820) | 10,370 |
Investment income (loss) | 18,634 | (8,559) | 1,929 |
Other expenses, net | (51,917) | (85,946) | (79,206) |
Income before income taxes and equity in earnings of unconsolidated investees | 138,464 | 134,484 | 179,673 |
Income tax benefit (expense) | (35,844) | 1,983 | (42,066) |
Equity in earnings (loss) of unconsolidated investees | 7,256 | 10,779 | 28,948 |
Net income | 109,876 | 147,246 | 166,555 |
Less: net income (loss) attributable to non-controlling interests | 14,628 | 543 | (5,030) |
Net income attributable to Canadian Solar Inc. | $ 95,248 | $ 146,703 | $ 171,585 |
Earnings per share - basic | $ 1.55 | $ 2.46 | $ 2.88 |
Shares used in computation - basic | 61,614,391 | 59,575,898 | 59,633,855 |
Earnings per share - diluted | $ 1.46 | $ 2.38 | $ 2.83 |
Shares used in computation - diluted | 68,872,102 | 62,306,819 | 60,777,696 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $ 109,876 | $ 147,246 | $ 166,555 |
Other comprehensive income (loss) (net of tax of nil): | |||
Foreign currency translation adjustment | (26,296) | 76,188 | 319 |
Gain (loss) on interest rate swap | 59 | (4,115) | (5,847) |
De-recognition of interest rate swap | 10,724 | ||
Comprehensive income | 83,639 | 230,043 | 161,027 |
Less: comprehensive income (loss) attributable to non-controlling interests | 10,296 | 2,412 | (11,100) |
Comprehensive income attributable to Canadian Solar Inc. | $ 73,343 | $ 227,631 | $ 172,127 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Comprehensive Income, Net of Tax, Portion Attributable to Parent | |||
Other comprehensive income tax | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Common Shares | Treasury Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income | Equity (Deficits) Attribute to Canadian Solar Inc. | Non-Controlling Interest | Total | |
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 | ||||||||
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 of non-controlling interest's ownership | (4,178) | (4,178) | (9,998) | (14,176) | |||||
Repurchase of common shares | [1] | $ (11,845) | (11,845) | (11,845) | |||||
Repurchase of common shares (in shares) | [1] | (609,516) | 609,516,000 | ||||||
Share-based compensation | 10,682 | 10,682 | 10,682 | ||||||
Exercise of share options and RSUs | $ 875 | 875 | 875 | ||||||
Exercise of share options and RSUs (in shares) | 800,576 | ||||||||
Proceeds from 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 | 17,179 | 793,601 | (109,607) | 1,393,134 | 31,924 | 1,425,058 | ||
Balance (in shares) at Dec. 31, 2019 | 59,371,684 | ||||||||
Treasury stock, balance at Dec. 31, 2019 | $ (11,845) | ||||||||
Treasury stock, balance (in shares) at Dec. 31, 2019 | 609,516,000 | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net Income (loss) | 146,703 | 146,703 | 543 | 147,246 | |||||
Foreign currency translation adjustment | 74,319 | 74,319 | 1,869 | 76,188 | |||||
Acquisition of non-controlling interest's ownership | (8,414) | (8,414) | (8,414) | ||||||
Repurchase of common shares | [2] | $ (5,963) | (5,963) | (5,963) | |||||
Repurchase of common shares (in shares) | [2] | (381,330) | 381,330 | ||||||
Share-based compensation | 12,350 | 12,350 | 12,350 | ||||||
Transfer of equity interest in subsidiaries to non-controlling shareholders | (49,351) | (49,351) | 273,904 | 224,553 | |||||
Exercise of share options and RSUs | $ 1,035 | 1,035 | 1,035 | ||||||
Exercise of share options and RSUs (in shares) | 830,030 | ||||||||
Retirement of treasury stock (in shares) | [3] | (990,846,000) | |||||||
Retirement of treasury stock | [3] | $ 17,808 | $ 17,808 | ||||||
De-recognition of derivatives | 10,724 | 10,724 | 10,724 | ||||||
Proceeds from non-controlling interests | 14,123 | 14,123 | |||||||
Fair value change on derivatives | (4,115) | (4,115) | (4,115) | ||||||
Balance at Dec. 31, 2020 | $ 687,033 | (28,236) | 940,304 | (28,679) | 1,570,422 | 322,363 | $ 1,892,785 | ||
Balance (in shares) at Dec. 31, 2020 | 59,820,384 | 59,820,384 | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||
Net Income (loss) | 95,248 | 95,248 | 14,628 | $ 109,876 | |||||
Foreign currency translation adjustment | (21,964) | (21,964) | (4,332) | (26,296) | |||||
Acquisition of non-controlling interest's ownership | (10,719) | (10,719) | |||||||
Share-based compensation | 8,808 | 8,808 | 8,808 | ||||||
Exercise of share options and RSUs (in shares) | 562,376 | ||||||||
Issuance of ordinary shares, net of issuance costs | [4] | $ 148,510 | 148,510 | 148,510 | |||||
Issuance of ordinary shares, net of issuance costs (in shares) | [4] | 3,639,918 | |||||||
Proceeds from non-controlling interests | 10,003 | 10,003 | |||||||
Disposal of subsidiaries | 6,588 | 6,588 | |||||||
Fair value change on derivatives | 59 | 59 | 59 | ||||||
Balance at Dec. 31, 2021 | $ 835,543 | $ (19,428) | $ 1,035,552 | $ (50,584) | $ 1,801,083 | $ 325,355 | $ 2,126,438 | ||
Balance (in shares) at Dec. 31, 2021 | 64,022,678 | 64,022,678 | |||||||
[1] Following the share repurchase plan authorized by the Board Directors on December 9, 2019, the Company repurchased 609,516 outstanding shares with total costs of $11,845 in December 2019. The Company retired all outstanding shares repurchased during 2020. Following the share repurchase plan authorized by the Board Directors on December 9, 2019, the Company repurchased 91,424 and 289,906 outstanding shares with total costs of $2,000 and $3,963 in January 2020 and March 2020, respectively. The Company retired all outstanding shares repurchased during 2020. The Company completed capital raising RMB 1.78 billion (approximately $261,332 ) for CSI Solar Co., Ltd., to qualify it for the planned carve-out IPO in China and bring in leading institutional investors and strategic partners. Refer to Note 1 to the consolidated financial statements for further information. Represents proceeds from “at-the-market” offering of 3,639,918 shares of common shares in 2021, net of commissions and offering expenses of $ 1,490 . |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) $ in Thousands, ¥ in Millions | May 27, 2021 USD ($) shares |
Number of shares repurchased | 3,639,918 |
Common Shares | |
Number of shares sold at-the-market | 3,639,918 |
Commissions and offering expenses | $ | $ 1,490 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities: | |||
Net income | $ 109,876,000 | $ 147,246,000 | $ 166,555,000 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 282,769,000 | 209,118,000 | 159,723,000 |
Accretion of convertible notes | 1,461,000 | 388,000 | |
Loss (gain) on disposal of property, plant and equipment | 83,000 | (253,000) | 1,227,000 |
Gain on disposal of solar power systems | (10,091,000) | (1,666,000) | |
Gain on disposal of investment in affiliates | (10,392,000) | (13,936,000) | (1,928,000) |
Impairment loss of property, plant and equipment | 6,084,000 | 11,854,000 | 21,866,000 |
Impairment loss of project assets | 17,152,000 | 369,000 | 20,194,000 |
Impairment loss of investment | 0 | 24,060,000 | 0 |
Loss (gain) on change in fair value of derivatives, net | (23,785,000) | (50,001,000) | 22,218,000 |
Share-based compensation | 8,808,000 | 12,350,000 | 10,682,000 |
Equity in earnings of unconsolidated investees | (7,256,000) | (10,779,000) | (28,948,000) |
Allowance for credit losses | 7,615,000 | 9,874,000 | 1,250,000 |
Non-cash operating lease expenses | 14,321,000 | 19,260,000 | 14,318,000 |
Write-down of inventories | 14,070,000 | 42,907,000 | 19,447,000 |
Unrealized gain (loss) from sales to affiliates | 35,890,000 | (66,000) | 6,194,000 |
Derecognition of interest rate swap | 4,439,000 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable trade | (284,785,000) | 65,379,000 | 51,670,000 |
Accounts receivable, unbilled | (8,783,000) | (12,064,000) | (15,268,000) |
Amounts due from related parties | (68,912,000) | 26,828,000 | (17,347,000) |
Inventories | (518,741,000) | (180,974,000) | (312,781,000) |
Value added tax recoverable | (21,873,000) | 2,687,000 | (849,000) |
Advances to suppliers | (30,416,000) | (138,915,000) | (27,066,000) |
Project assets | (73,375,000) | (443,730,000) | 28,527,000 |
Prepaid expenses and other current assets | (85,754,000) | (72,188,000) | 33,283,000 |
Other non-current assets | 20,357,000 | (11,913,000) | (24,037,000) |
Accounts payable | 11,023,000 | (89,180,000) | 209,175,000 |
Short-term notes payable | 150,982,000 | 120,445,000 | 185,827,000 |
Amounts due to subsidiaries | (171,000) | (9,773,000) | (5,798,000) |
Other payables | 126,215,000 | 10,386,000 | 42,810,000 |
Advances from customers | (53,998,000) | 51,683,000 | 96,115,000 |
Operating lease liabilities | (15,803,000) | (19,369,000) | (12,566,000) |
Other liabilities | 41,835,000 | 179,911,000 | (10,851,000) |
Accrued warranty costs | 9,413,000 | (19,143,000) | 4,624,000 |
Prepaid land use rights | 1,647,000 | 452,000 | 2,622,000 |
Goodwill | 1,005,000 | ||
Liability for uncertain tax positions | (7,281,000) | (623,000) | (4,775,000) |
Deferred taxes | (67,386,000) | (21,439,000) | (12,455,000) |
Net settlement of derivatives | 31,886,000 | 33,054,000 | (27,012,000) |
Loss contingency accruals | (10,939,000) | 1,115,000 | 4,126,000 |
Net cash provided by (used in) operating activities | (408,254,000) | (120,541,000) | 600,111,000 |
Investing activities: | |||
Investments in affiliates | (54,004,000) | (17,758,000) | (7,684,000) |
Return of investment from affiliates | 2,671,000 | 3,012,000 | |
Proceeds from disposal of investment in affiliates | 14,311,000 | 33,037,000 | 1,649,000 |
Purchase of property, plant and equipment and intangible assets | (428,725,000) | (334,781,000) | (291,182,000) |
Proceeds from disposal of property, plant and equipment | 18,555,000 | ||
Purchase of solar power systems | (775,000) | (160,000) | |
Proceeds from disposal of solar power systems | 18,397,000 | 103,000 | |
Net cash used in investing activities | (429,570,000) | (319,662,000) | (294,102,000) |
Financing activities: | |||
Proceeds from short-term borrowings | 1,742,064,000 | 1,667,703,000 | 1,257,009,000 |
Repayment of short-term borrowings | (1,879,884,000) | (1,561,597,000) | (1,649,721,000) |
Proceeds from long-term borrowings | 588,082,000 | 207,632,000 | 530,990,000 |
Acquisition of non-controlling interest | (10,719,000) | (14,176,000) | |
Proceeds from non-controlling interests | 10,003,000 | 261,332,000 | 11,488,000 |
Repayment to non-controlling interests | (6,588,000) | ||
Net proceeds from issuance of common shares | 148,510,000 | ||
Proceeds from third party financing liabilities | 6,419,000 | 3,000,000 | |
Proceeds from sales-leaseback arrangement | 45,693,000 | 9,945,000 | 9,044,000 |
Distributions to tax equity investors | (1,120,000) | ||
Repayment of finance lease obligation | (23,090,000) | (22,173,000) | (42,658,000) |
Net proceeds from issuance of convertible notes | 222,826,000 | ||
Payments for repurchase of convertible notes | (127,500,000) | ||
Proceeds from subscription of employee stock ownership plan | 36,342,000 | ||
Proceeds from exercise of stock options | 1,035,000 | 875,000 | |
Payments for repurchase of common shares | (5,963,000) | (11,845,000) | |
Net cash provided by (used in) financing activities | 614,071,000 | 823,501,000 | (34,614,000) |
Effect of exchange rate changes | 18,320,000 | 50,997,000 | (6,965,000) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (205,433,000) | 434,295,000 | 264,430,000 |
Cash, cash equivalents and restricted cash at the beginning of the year | 1,639,715,000 | 1,205,420,000 | 940,990,000 |
Cash, cash equivalents and restricted cash at the end of the year | 1,434,282,000 | 1,639,715,000 | 1,205,420,000 |
Supplemental disclosure of cash flow information: | |||
Interest paid (net of amounts capitalized) | 71,006,000 | 78,747,000 | 85,362,000 |
Income taxes paid, net of tax refund | 57,396,000 | 38,193,000 | 40,454,000 |
Supplemental schedule of non-cash activities: | |||
Property, plant and equipment costs included in other payables | $ 299,664,000 | $ 244,512,000 | $ 244,483,000 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
Cash and cash equivalents | $ 869,831 | $ 1,178,752 | ||
Restricted cash - current | 560,633 | 458,334 | ||
Restricted cash - non-current | 3,818 | 2,629 | ||
Total cash and cash equivalents, and restricted cash shown in the statements of cash flows | $ 1,434,282 | $ 1,639,715 | $ 1,205,420 | $ 940,990 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Dec. 31, 2021 | |
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. In July 2020, CSI filed articles of continuance, or the articles, to change its jurisdiction from the federal jurisdiction of Canada to the provincial jurisdiction of the Province of British Columbia. As a result, CSI is governed by the British Columbia Business Corporation Act, or the BCBCA, and its affairs are governed by its notice of articles and the articles. CSI and its subsidiaries (collectively, the “Company”) design, develop, and manufacture solar ingots, wafers, cells, modules and other solar power and battery storage products. In recent years, the Company has increased investment in its energy business, which primarily consists of solar and battery storage project development and sale, operating solar power systems and sale of electricity. As of December 31, 2021, major subsidiaries of CSI are included in Appendix 1. In July 2020, the Company announced its plan to carve-out and publicly list its legacy Module and System Solutions (“MSS”) subsidiary, CSI Solar Co., Ltd., in China (“the IPO”). In preparation for the IPO, the Company successfully completed the restructuring of its business segments during the fourth quarter of 2020, and transferred China solar power system and project assets from CSI Solar to the Global Energy segment in November 2021 as part of the CSI Solar Co., Ltd. carve-out listing process. Refer to Note 22 for further information. To qualify CSI Solar Co., Ltd. for the planned carve-out IPO and to bring in leading institutional investors and strategic partners (“third-party investors”), the Company also completed a capital raising in 2020 by transferring a portion of CSI Solar Co., Ltd. shares to third-party investors for an aggregate consideration of RMB1.50 billion (approximately $219,000), which was determined based on the equity value of CSI Solar Co., Ltd. of RMB7.50 billion (approximately $1,100,000). At the same time, selected employees also purchased existing CSI Solar Co., Ltd. shares from the Company for an aggregated consideration of RMB31 million (approximately $4,500) at the same price. As of December 31, 2020 and 2021, total proceeds of $224,553 were fully received and recorded as non-controlling interests in subsidiaries on the consolidated balance sheets. In addition, CSI Solar Co., Ltd. approved an employee incentive plan (the “ESOP scheme”) and utilized a limited liability partnership (the “LLP”) as a vehicle to hold CSI Solar Co., Ltd. shares that will be used under the ESOP scheme. Eligible CSI Solar Co., Ltd. directors and employees and board members have collectively agreed to subscribe to equity interest in the LLP for an aggregate of RMB248 million($36,342) at a discount of 30%, or at an equity valuation of RMB5.25 billion (approximately $768,000), for which the vesting conditions include the successful completion of the IPO and service period. The ESOP scheme will be accounted for based on the grant date fair value which equals to the value of the discount benefited by the ESOP scheme participants. Compensation cost will be recognized over the vesting period upon and after completion of IPO, therefore, nil was recognized in the years ended December 31, 2020 and 2021. As of December 31, 2020 and 2021, $36,342 of subscription advances were fully received and recorded as other payables on the consolidated balance sheets. As of December 31, 2020 and 2021, the third-party investors and Canadian Solar employees, in aggregate, owned 20.4% of for CSI Solar Co., Ltd. The Company’s wholly-owned global project development business, its Global Energy subsidiary, is not part of this transaction. |
SUMMARY OF PRINCIPAL ACCOUNTING
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
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. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (b) Basis of consolidation (Continued) 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. 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 may differ from those estimates under different assumptions or conditions. Significant accounting estimates reflected in the Company’s consolidated financial statements include revenue recognition (including determination of the allocation of the transaction price, determination of deconsolidation of the project companies, estimates of budget cost and estimates of variable consideration), allowance for credit losses on accounts receivable, other receivables 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”) associated with long-lived assets, 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 foreign exchange option and forward contracts 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 battery storage solutions and EPC 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 credit losses Before 2020, the Company determined its allowance for doubtful accounts by actively monitoring the financial condition of its customers to determine the potential for any nonpayment of accounts receivable trade, advances to suppliers and other receivables. In determining its allowance for doubtful accounts, the Company also considered other economic factors, such as aging trends. The Company believed that its process of specific review of customers, combined with overall analytical review, provided an effective evaluation of ultimate collectability of trade receivables. Provisions for allowance for doubtful accounts were recorded as general and administrative expenses in the consolidated statements of operations. After the adoption of ASU 2016-13 “Financial Instruments—Credit Losses (Topic 326)” beginning on January 1, 2020, the financial instruments are presented net of an allowance for credit losses. The Company establishes current expected credit losses (“CECL”) through an assessment based on external credit rating, internal credit rating and historical loss rates of debtors. Where CECL is measured on a collective basis or cater for cases where evidence at the individual instrument level may not yet be available, the financial instruments are grouped on the aging status; and nature, size and industry of debtors. The Company began purchasing credit insurance from insurers, such as the China Export & Credit Insurance Corporation, 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 credit insurance. At the time the claim is made, the Company records a receivable from these insurers equal to the expected recovery up to the amount of the specific allowance. The Company had recorded a receivable from these insurers in prepaid expenses and other current assets of $386 and $1,409 as of December 31, 2020 and 2021, 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 and battery storage projects in various stages of development prior to the intended sale of the solar and battery storage projects to a third party customer. These costs include certain acquisition costs, land costs and costs for developing and constructing a solar and battery storage 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 and battery storage projects are preliminarily classified as project assets unless the Company has intention not to sell them to third parties. In that case, these projects that the Company intends to hold and operate to generate electricity are classified as solar power systems on the consolidated balance sheets. As of December 31, 2020 and 2021, no battery storage power system were recorded on the consolidated balance sheets. During the development phase, solar and battery storage 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 and battery storage 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 and battery storage 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 and battery storage projects is assessed based on the circumstances on each balance sheet date. Solar and battery storage projects that the Company intends to sell within one year, which meet the criteria of ASC 360, are classified as project assets-current. 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, permitting, capital cost, 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 project asset 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 Company does not depreciate the project assets. Any revenue generated from a solar and battery storage 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 intends to operate the project assets for the purpose of generating income from the sale of electricity, the project assets will be reclassified to solar and battery storage power systems. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (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. (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 non cash 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 5-10 years 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 comprised of ground-mounted utility-scale projects 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 power purchase agreements (“PPA”) and performance based energy incentives, 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 to 25 years. The Company reviews the estimated useful lives of its fixed assets on an ongoing basis. This review indicated that the actual lives of certain solar power systems were longer than the estimated useful lives used for depreciation purposes in the Company’s financial statements. As a result, effective January 1, 2022, the Company changed the estimates of its useful lives of its solar power systems from 20-25 years to 30 years, based on internal studies and market analysis that support a 30-year useful life as appropriate given advances in solar power technology. The useful life was not changed for projects to be transferred to an offtaker at the end of a PPA that is less than 30 years in duration. The change is being accounted for prospectively as a change in accounting estimate. Depreciation expense for the year ended December 31, 2021 would have been lowered by $2,186 if the change had been made at the beginning of 2021. (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 1-10 years (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”). Amounts are charged to earnings ratably over the lease periods of 20 to 50 years. 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 is considered as return on investment, and the rest of the amount is considered as return of 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, 2019, 2020 and 2021, the Company recorded nil, $24,060 and nil of 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 $21,866, $11,854 and $6,084 for the years ended December 31, 2019, 2020 and 2021, respectively. (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 long-lived 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 was not material as of December 31, 2020 and 2021. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (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. 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 sheets. 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 operations. (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 charges to customers for shipping and handling activities. 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. 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. 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 reven |
ALLOWANCE FOR CREDIT LOSSES
ALLOWANCE FOR CREDIT LOSSES | 12 Months Ended |
Dec. 31, 2021 | |
ALLOWANCE FOR CREDIT LOSSES | |
ALLOWANCE FOR CREDIT LOSSES | 3. ALLOWANCE FOR CREDIT LOSSES Allowance for credit losses is comprised of allowances for accounts receivable trade, advances to suppliers and other receivables. Other receivables was included as a component of prepaid expenses and other current assets. Accounts receivable trade, net consisted of the following: At December 31, At December 31, 2020 2021 $ $ Accounts receivable trade, gross 449,251 698,498 Allowance for credit losses (40,293) (47,126) Accounts receivable trade, net 408,958 651,372 Advances to suppliers, net consisted of the following: At December 31, At December 31, 2020 2021 $ $ Advances to suppliers, gross 299,019 279,800 Allowance for credit losses (19,700) (19,682) Advances to suppliers, net 279,319 260,118 Other receivable, net consisted of the following: At December 31, At December 31, 2020 2021 $ $ Other receivable, gross 238,779 280,350 Allowance for credit losses (8,802) (9,397) Other receivable, net 229,977 270,953 3. ALLOWANCE FOR CREDIT LOSSES (Continued) The following table presents the change in the allowances for credit losses related to the Company’s accounts receivable trade and advances to suppliers: Advances to Accounts Receivable Suppliers and Trade Other Receivable $ $ Balance as of December 31, 2018 32,733 30,630 Allowances made (reversed) during the year, net (1,386) 2,657 Accounts written-off against allowances (309) (1,452) Foreign exchange effect (1,493) (123) Balance as of December 31, 2019 29,545 31,712 Cumulative-effect adjustment for the adoption of ASU 2016-13 — — Provision for credit losses, net 9,785 1,647 Writeoffs (639) (5,490) Foreign exchange effect 1,602 633 Balance as of December 31, 2020 40,293 28,502 Provision for credit losses, net 7,171 444 Writeoffs (197) (53) Foreign exchange effect (141) 186 Balance as of December 31, 2021 47,126 29,079 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2021 | |
INVENTORIES | |
INVENTORIES | 4. INVENTORIES Inventories consist of the following: At December 31, At December 31, 2020 2021 $ $ Raw materials 90,308 155,433 Work-in-process 69,132 117,509 Finished goods 536,541 919,432 695,981 1,192,374 Finished goods include modules of $181,012 and $163,078 as of December 31, 2020 and 2021, respectively, that allow solar energy systems to qualify for the U.S. Federal Investment Tax Credit by satisfying the 5% safe harbor method outlined in the U.S. Internal Revenue Service (IRS) guidance notice. In 2019, 2020 and 2021, inventory was written down by $19,447, $42,907 and $14,070, respectively, to reflect the lower of cost and net realizable value. |
PROJECT ASSETS
PROJECT ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
PROJECT ASSETS | |
PROJECT ASSETS | 5. PROJECT ASSETS Project assets consist of the following: At December 31, At December 31, 2020 2021 $ $ Project assets — Acquisition cost 44,549 70,651 Project assets — EPC and other cost 1,092,917 956,710 1,137,466 1,027,361 Current portion 747,764 594,107 Non-current portion 389,702 433,254 The Company recorded impairment loss on project assets of $20,194, $369 and $17,152 for the years ended December 31, 2019, 2020 and 2021, respectively. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2021 | |
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, 2020 2021 $ $ Buildings 533,647 724,940 Leasehold improvements 14,804 32,995 Machinery 1,191,780 1,477,638 Furniture, fixtures and equipment 75,656 86,616 Motor vehicles 7,643 9,833 Land 20,231 31,691 1,843,761 2,363,713 Accumulated depreciation (827,601) (1,019,988) Impairment (52,149) (42,828) Subtotal 964,011 1,300,897 Construction in process 193,720 100,980 Property, plant and equipment, net 1,157,731 1,401,877 Depreciation expense of property, plant and equipment was $148,034, $197,600 and $266,956 for the years ended December 31, 2019, 2020 and 2021, 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, 2021 | |
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, 2020 2021 $ $ Solar power systems in operation 182,232 117,339 Solar power systems under construction 6,565 4,684 Accumulated depreciation (30,535) (13,760) Solar power systems, net 158,262 108,263 Depreciation expense of solar power systems was $6,379, $6,396 and $11,212 for the years ended December 31, 2019, 2020 and 2021, respectively. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2021 | |
INTANGIBLE ASSETS, NET | |
INTANGIBLE ASSETS, NET | 8. INTANGIBLE ASSETS, NET The following table summarizes the Company’s intangible assets, net: Gross Carrying Accumulated At December 31, 2021 Amount Amortization Net $ $ $ Technical know-how 1,577 (1,562) 15 Computer software 39,059 (20,082) 18,977 Total intangible assets, net 40,636 (21,644) 18,992 Gross Carrying Accumulated At December 31, 2020 Amount Amortization Net $ $ $ Technical know-how 1,543 (1,525) 18 Computer software 41,085 (18,674) 22,411 Total intangible assets, net 42,628 (20,199) 22,429 Amortization expense for the years ended December 31, 2019, 2020 and 2021 were $5,310, $5,122 and $4,601, respectively. Amortization expenses of the above intangible assets are expected to be approximately $4,409, $3,228, $2,691, $2,198, $2,052 and $4,414 for the years ending December 31, 2022, 2023, 2024, 2025, 2026 and thereafter, respectively. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2021 | |
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, 2020 and 2021, with the exception of its listed equity securities which was measured based on unadjusted quoted prices for identical assets in active market (Level 1 inputs), 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 (Level 2 inputs). 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, Brazilian reals, Euros, Canadian dollars and South African rand. 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 and commodity hedge In July 2020, the Company completed the sale of its class B membership interests in the Roserock project to an unrelated third party, and consequently the Company’s interest rate swap contracts with total notional amounts of approximately $399,000 were paid off following the loan repayment. In 2021, the Company entered into commodity hedge to manage part of its risks of rising raw material costs. The estimated fair value of interest rate swaps and commodity hedge was measured based on observable market data, which were considered Level 2 inputs. 9. FAIR VALUE MEASUREMENT (Continued) The fair value of derivative instruments on the consolidated balance sheets as of December 31, 2020 and 2021 and the effect of derivative instruments on the consolidated statements of operations for the years ended December 31, 2019, 2020 and 2021 are as follows: Fair Value of Derivative Assets At December 31, 2020 At December 31, 2021 Balance Sheet Location Fair Value Balance Sheet Location Fair Value $ $ Foreign exchange forward contracts Derivative assets — current 22,178 Derivative assets — current 7,124 Foreign exchange option contracts Derivative assets — current 1,173 Derivative assets — current 162 Interest rate swap Other non-current assets — Other non-current assets 76 Total 23,351 Total 7,362 Fair Value of Derivative Liabilities At December 31, 2020 At December 31, 2021 Balance Sheet Location Fair Value Balance Sheet Location Fair Value $ $ Foreign exchange forward contracts Derivative liabilities — current 10,753 Derivative liabilities — current 2,622 Foreign exchange option contracts Derivative liabilities — current 2 Derivative liabilities — current — Total 10,755 Total 2,622 Amount of Gain (Loss) Recognized in Statements Location of of Operations Gain (Loss) Recognized Years Ended December 31 in Statements of Operations 2019 2020 2021 $ $ $ Foreign exchange forward contracts Gain (loss) on change in fair value of derivatives, net (20,249) 49,807 22,582 Foreign exchange option contracts Gain (loss) on change in fair value of derivatives, net (1,022) 1,376 220 Commodity hedge Gain (loss) on change in fair value of derivatives, net — — 983 Interest rate swap Gain (loss) on change in fair value of derivatives, net (947) (1,182) — Total (22,218) 50,001 23,785 Listed equity securities In December 2020, the Company received shares of a company that is listed on Shenzhen stock exchange for the disposal of its ownership of Suzhou iSilver Materials Co., Ltd, valued at RMB91,370 (approximately $14,003) on the transaction date as part of the consideration. These shares were carried at fair value of $15,056 and $20,195 as of December 31, 2020 and 2021, respectively, included as a component of Prepaid expenses and other current assets. Unrealized gains on these shares of $1,048 and $4,744 was recorded as investment income in the consolidated statements of operations for the years ended December 31, 2020 and 2021, respectively. 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 assesses ROU assets for impairment quarterly. If the carrying value of ROU 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 operations. The Company recorded impairment charges for certain manufacturing asset group of $21,866, $11,854 and $6,084 for the years ended December 31, 2019, 2020 and 2021, 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 CSI Solar segment on its consolidated statements of operations. 9. FAIR VALUE MEASUREMENT (Continued) Other fair value measurements (Continued) The Company recorded impairment loss on project assets of $20,194, $369 and $17,152 for the years ended December 31, 2019, 2020 and 2021, respectively. The fair value of project 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 as cost of revenues on its consolidated statements of operations. 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, other receivables, accounts payables, short-term notes payable, amounts due to related parties, other payables and short-term borrowings approximate their fair values due to the shorter -term maturity of these instruments. Long-term borrowings were $446,090 and $523,634 as of December 31, 2020 and 2021, 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 $223,214 and $224,675 as of December 31, 2020 and 2021, respectively, which approximates the fair value. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2021 | |
VARIABLE INTEREST ENTITIES | |
VARIABLE INTEREST ENTITIES | 10. VARIABLE INTEREST ENTITIES Since 2016, the Company, through its subsidiaries, entered into silent partnership agreements and/or various types of bankruptcy remote arrangements for the sole purpose of holding Japan project companies. Under the silent partnership agreements and/or the bankruptcy remote arrangements, the project companies are considered VIEs in which the Company has no majority 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 a wholly-owned subsidiary, Canadian Solar Projects K.K. 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. The Company does not retain any ownership interest nor control of the bankruptcy remote entities, which individually and, in the aggregate, are insignificant. As of December 31, 2020 and 2021, 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 sheets are as follows: At December 31, At December 31, 2020 2021 $ $ Cash 42,064 48,200 Project assets 337,836 289,315 Other assets 79,580 53,091 Total assets 459,480 390,606 Short-term borrowings 180,773 113,857 Long-term borrowings 52,408 106,880 Other liabilities 60,845 36,872 Total liabilities 294,026 257,609 Net income and overall cash flow activities during the years ended December 31, 2020 and 2021 were immaterial to the Company’s consolidated financial statements. |
INVESTMENTS IN AFFILIATES
INVESTMENTS IN AFFILIATES | 12 Months Ended |
Dec. 31, 2021 | |
INVESTMENTS IN AFFILIATES | |
INVESTMENTS IN AFFILIATES | 11. INVESTMENTS IN AFFILIATES Investments in affiliates consist of the following: At December 31, 2020 2021 Carrying Ownership Carrying Ownership Value Percentage Value Percentage $ (%) $ (%) Canadian Solar Infrastructure Fund, Inc. 19,980 14.66 12,889 14.64 Suzhou Financial Leasing Co., Ltd. 23,969 4.78 27,026 4.78 RE Crimson Holdings LLC — — 18,854 20 JuSheng (Suzhou) Solar Tech Co., Ltd. — — 6,274 4.55 Others 34,342 15-49 33,776 20-49 Total 78,291 98,819 In 2017, Canadian Solar Infrastructure Fund, Inc. (“CSIF”) completed its initial public offering. On March 5, 2021, CSIF issued 151,500 investment units at 125,115 Japanese yen per unit through public offering, the Company purchased 22,725 units in the amount of JPY2,843,238 ($25,683). Through its initial private placement of 1,500 units, the purchase of 25,395 units in the initial public offering on October 26, 2017 and allotment of 7,000 units on September 5, 2018, the Company held a total of 56,620 units as of December 31, 2021 at a total subscription amount of JPY6,247,998 ($55,697). As of December 31, 2020 and 2021, the Company owned 14.66% and 14.64% of total units of CSIF, respectively. 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 present. As such, the Company is considered having significant influence over the investee and the equity method is used in this investment. In 2015, the Company, through CSI Solar Co., Ltd., established an entity, Suzhou Financial Leasing Co., Ltd. with 4.78% effective interests. One of five board members is designated by CSI Solar Co., Ltd. This investment is accounted for under the equity method as CSI Solar Co., Ltd. has significant influence over the investee. In September 2021, the Company, through its wholly owned subsidiary, Recurrent Energy, LLC, completed the sale of its 80% stake in RE Crimson Holdings LLC (“Crimson”) to an unrelated third party. Effective with the sale of the equity interests, the Company ceased having controlling financial interests in Crimson, and accounted for the transaction as partial sales of real estates under ASC 360-20. The Company considered that it would continue to exercise significant influences over its retained 20% equity interests in Crimson, and has accounted for these interests pursuant to the equity method of accounting. In connection with the sale, $123,135 was recognized as revenue, and with the loss of controlling financial interests in Crimson, the Company derecognized net assets of $42,333 and recognized the retained equity interests in investments in affiliates on its consolidated balance sheets. In October 2021, the Company, through CSI Solar Co., Ltd., acquired a 4.55% effective interest in JuSheng (Suzhou) Solar Tech Co., Ltd.. This investment is accounted for by CSI Solar Co., Ltd. under the equity method as it designated a representative director to participate in the investee’s policy-making processes and exercised significant influence over the investee. In December 2020 and December 2021, the Company completed the sales of its majority interests in Horus Solar S.A. De Capital Variable (“Horus”) which holds its Horus project, and Recursos Solares PV De México II S.A. De Capital Variable (“Recursos”) which holds its Tastiota project, respectively, to unrelated third parties. In connection with these sales, the Company’s interest in Horus and Recursos decreased to 49%. In connection with these sales, $100,896 and $113,843 were recognized as revenue in 2020 and 2021, respectively and the Company’s interest in Horus and Recursos have each decreased to 49%. With the loss of controlling financial interests in Horus and Recursos, the Company derecognized net assets of $10,363 and $7,527 in 2020 and 2021, respectively, and recognized the retained equity interests as investments in affiliates on its consolidated balance sheets. Equity in earnings of unconsolidated investees were $28,948, $10,779 and $7,256 for the years ended December 31, 2019, 2020 and 2021, respectively. |
LEASE
LEASE | 12 Months Ended |
Dec. 31, 2021 | |
LEASE | |
LEASE | 12 . LEASE The Company leases office space, office equipment and vehicles for solar power plants construction, and manufacturing facilities in various regions where the Company operates. Leased assets are mainly located in the PRC, United States and Canada. 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 consolidated balance sheet. The components of lease expenses were as follows: Year ended Year ended December 31, 2020 December 31, 2021 $ $ Finance lease cost: Amortization of right-of-use assets 8,036 14,920 Interest on lease liabilities 1,497 1,349 Operating fixed lease cost 19,630 18,443 Short-term lease cost 850 1,884 Total lease cost 30,013 36,596 Other supplemental information related to leases is summarized below: Year ended Year ended December 31, 2020 December 31, 2021 $ $ Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from finance lease (1,497) (1,349) Operating cash outflows from operating lease (20,589) (19,972) Financing cash outflows from finance lease (19,163) (35,554) ROU assets obtained in exchange of new finance lease liabilities in non-cash transaction 10,666 60,102 ROU assets obtained in exchange of new operating lease liabilities in non-cash transaction 14,892 24,694 ROU assets disposed through early termination of operating leases in non-cash transaction (6,572) (1,880) At December 31, At December 31, 2020 2021 Weighted average of remaining operating lease term - finance leases (in years) 0.90 2.66 Weighted average of remaining operating lease term - operating leases (in years) 3.07 4.40 Weighted average of operating lease discount rate - finance lease 5.54 % 4.95 % Weighted average of operating lease discount rate - operating lease 4.18 % 4.34 % 12 . LEASE (Continued) As of December 31, 2021, maturities of operating and finance lease liabilities were as follows: Operating Lease Finance Lease Total Lease Payment Payment Payment $ $ $ Year Ending December 31: 2022 12,768 20,381 33,149 2023 7,941 17,052 24,993 2024 4,833 16,272 21,105 2025 1,880 — 1,880 2026 2,398 — 2,398 Thereafter 10,651 — 10,651 Total future minimum lease payments 40,471 53,705 94,176 Less: imputed interest 5,071 3,552 8,623 NPV for future minimum lease payments 35,400 50,153 85,553 Analysis as: Short-term 12,185 18,749 30,934 Long-term 23,215 31,404 54,619 Total lease liabilities 35,400 50,153 85,553 As of December 31, 2020, maturities of operating and finance lease liabilities were as follows: Operating Lease Finance Lease Total Lease Payment Payment Payment $ $ $ Year Ending December 31: 2021 14,374 22,706 37,080 2022 7,427 2,514 9,941 2023 3,632 — 3,632 2024 1,242 — 1,242 2025 369 — 369 Thereafter 1,859 — 1,859 Total future minimum lease payments 28,903 25,220 54,123 Less: imputed interest 467 963 1,430 NPV for future minimum lease payments 28,436 24,257 52,693 Analysis as: Short-term 15,204 21,887 37,091 Long-term 13,232 2,370 15,602 Total lease liabilities 28,436 24,257 52,693 |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2021 | |
BORROWINGS | |
BORROWINGS | 13 . BORROWINGS Borrowings consist of the following: At December 31, At December 31, 2020 2021 $ $ Short-term borrowings 912,549 1,092,329 Long-term borrowings, current portion 289,736 178,886 Long-term borrowings on project assets — current (1) 198,794 321,655 Subtotal for short-term borrowings 1,401,079 1,592,870 Long-term borrowings 446,090 523,634 Total 1,847,169 2,116,504 (1) Certain long-term borrowings were classified as current liabilities because these borrowings are associated with certain solar and battery storage projects that are expected to be sold within one year. As of December 31, 2021, the Company had contractual credit facilities of $3,357,009, of which $1,595,684 has been drawn under borrowings and $511,700 has been drawn under arrangements with banks including bank guarantees, letters of credit and short-term notes payable, and $1,249,625 was available for draw down upon demand. In addition, as of December 31, 2021, the Company also had uncommitted credit facilities of $962,564, of which $375,963 has been drawn under borrowings and $250,321 under arrangements with banks including bank guarantees, letters of credit and short-term notes payable. As of December 31, 2021, $514,756 of the Company’s borrowings under its energy business were non-recourse in nature. As of December 31, 2021, borrowings of $1,348,352 were secured by property, plant and equipment with carrying amounts of $417,055, inventories of $163,910, prepaid land use rights of $52,253, restricted cash of $67,031, accounts receivable of $32,481, equity interest of $348,238 and project assets and solar power systems of $682,136. These borrowings were recorded as short-term borrowings of $596,484, long-term borrowings, current portion of $98,949, long-term borrowings on project assets – current of $318,506 and long-term borrowings of $334,413. The Company’s significant borrowings during the years ended December 31, 2020 and 2021 were as follows: In 2016, Canadian Solar Projects K.K. obtained a syndicated three-year loan facility of JPY9,600,000 ($85,200) with Sumitomo Mitsui Banking Corporation (“SMBC”), acting as the lead arranger and 13 other participating financial institutions. The facility is unsecured and is guaranteed by the Company. The loan proceeds may be used to develop its solar project pipeline in Japan and for general corporate working capital purposes. In October 2020, the facility agreement was renewed with 11 participating financial institutions led by SMBC at a term of two years and a facility amount of JPY9,100,000 ($88,200). In September 2021, the subsidiary further expanded the facility to JPY10,000,000 ($89,859) and the facility will mature in September 2024. As of December 31, 2021, the loan was fully drawn and all the requirements of financial covenants were met. In 2019, Canadian Solar Manufacturing (Thailand) Co.,Ltd. obtained a In 2020, Recurrent executed a $75,000 development loan with Nomura. The loan facility leverages Recurrent’s pipeline of solar and battery storage projects in the U.S. and Canada and is guaranteed by the Company. In November 2021, the facility was renewed with an extended amount totaling $125,000 that matures in November 2023. As of December 31, 2021, the loan was fully drawn, and all the requirements of financial covenants were met. 13. BORROWINGS (Continued) In 2020, Suntop Finco Pty Ltd. and Gunnedah Finco Pty Ltd. obtained a syndicated five-year non-recourse facility of AUD289,419 ($206,022) with Australia and New Zealand Banking Group Limited acting as the facility agent and 3 other financial institutions, to finance the construction of the Suntop and Gunnedah Solar Farms in Australia. The facility is secured by the project assets and will mature in 2025. As of December 31, 2021, the outstanding balance was $154,027 and all the requirements of financial covenants were met. In February 2021, Azuma Kofuji Daiichi Hatsudensho G.K. obtained a JPY24,513,530 ($230,759) project finance loan facility with Nomura Capital Investment Co., Ltd. acting as lead arranger and other participating financial institutions. The facility is for construction of the 100MWp Azuma Kofuji project in Japan. The project finance loan is secured by project assets and will mature in November 2023, As of December 31, 2021, the outstanding balance was $105,542 and all the requirements of financial covenants were met. In Mar 2021, four Japanese subsidiaries issued JPY8,100,000 ($73,167) of non-recourse green project bonds to construct 42.8 MW of projects in Japan. The project bonds are secured by project assets and will mature in 2039. In April 2021, CSI Solar Co., Ltd. and Canadian Solar Manufacturing (Changshu) Inc. entered into two credit facilities in the aggregate of RMB1,150,000 ($177,820) with Bank of China to support manufacturing operations in China. CSI Solar Co., Ltd. is the borrower or guarantor of these credit facilities and the credit facilities mature in March 2023.. As of December 31, 2021, $135,008 was drawn. In August 2021, Canadian Solar Manufacturing (Changshu) Inc. entered into a RMB600,000 ($92,766) one-year credit facility with China Merchants Bank. The credit facility is unsecured and is guaranteed by CSI Solar Co., Ltd and matures in August 2022. As of December 31, 2021, $62,333 was drawn, and all the requirements of financial covenants were met. In November 2021, Canadian Solar Sunenergy (Jiaxing) Co. Ltd. (formerly known as CSI Modules (Jiaxing) Co., Ltd.) entered into a RMB580,000 ($90,918) long term loan facility with Shanghai Pudong Development Bank. The loan facility is secured by certain property, plant and equipment, guaranteed by CSI Solar Co., Ltd., and matures in November 2028. As of December 31, 2021, $7,387 was drawn. As of December 31, 2021, all the requirements of financial covenants were met. These obtained long-term borrowings mentioned above bear effective floating interest rates from 1.0% to 5.7%. Future principal repayments on the long-term borrowings are as follows. Included in the future principal repayment of 2022 are $321,655 of long-term borrowings on project assets – current, associated with certain solar and battery storage projects that are expected to be sold within one year: 2022 $ 500,541 2023 336,504 2024 160,043 2025 6,822 2026 4,783 Thereafter 15,482 Total 1,024,175 Less: future principal repayment related to long-term borrowings, current portion (500,541) Total long-term portion $ 523,634 13. BORROWINGS (Continued) Interest expenses Average effective interest rates on borrowings are as follows: At December 31, At December 31, 2020 2021 Short-term borrowings 3.26 % 3.03 % Long-term borrowings on project assets – current 3.63 % 3.04 % Long-term borrowings 4.37 % 3.46 % The Company capitalized interest costs incurred on borrowings obtained to finance construction of solar and battery storage projects or property, plant and equipment until the asset is ready for its intended use. The interests incurred during the years ended December 31, 2019, 2020 and 2021 are as follows: Years Ended December 31, 2019 2020 2021 $ $ $ Interest capitalized — project assets 10,794 10,197 17,316 Interest capitalized — property, plant and equipment 2,620 154 — Interest expense 81,326 71,874 58,153 Total interest incurred 94,740 82,225 75,469 |
SHORT-TERM NOTES PAYABLE
SHORT-TERM NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2021 | |
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, 2020 and 2021, short-term notes payable was $710,636 and $881,184, respectively. |
ACCRUED WARRANTY COSTS
ACCRUED WARRANTY COSTS | 12 Months Ended |
Dec. 31, 2021 | |
ACCRUED WARRANTY COSTS | |
ACCRUED WARRANTY COSTS | 15. ACCRUED WARRANTY COSTS The Company’s warranty activity is summarized below: Years Ended December 31, 2019 2020 2021 $ $ $ Beginning balance 50,605 55,878 37,732 Warranty provision 28,044 26,931 45,053 Warranty costs incurred (23,282) (46,067) (35,432) Foreign exchange effect 511 990 (2,207) Ending balance 55,878 37,732 45,146 |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
RESTRICTED NET ASSETS | |
RESTRICTED NET ASSETS | 16. RESTRICTED NET ASSETS As stipulated by the relevant laws and regulations applicable to PRC’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 $602,460 as of December 31, 2021. |
CONVERTIBLE NOTES
CONVERTIBLE NOTES | 12 Months Ended |
Dec. 31, 2021 | |
CONVERTIBLE NOTES | |
CONVERTIBLE NOTES | 17. CONVERTIBLE NOTES On September 16, 2020, the Company issued $200,000 of convertible notes (the “2020 Notes”). The Company granted the initial purchasers a 30-day option to purchase up to an additional $30,000 aggregate principal amount of the 2020 Notes. The option was fully exercised by initial purchasers on the same day. The key terms of the 2020 Notes are described as follows: Maturity date. Interest. Conversion. Redemption. As of December 31, 2020 and 2021, the carrying value of the convertible notes was $223,214 and $224,675, net of unamortized issuance costs of $6,786 and $5,325, respectively. The debt issuance costs are being amortized through interest expense over the period from September 16, 2020, the date of issuance, to October 1, 2025, the date of expiration, using the effective interest rate method at the rate of 3.18%. The amortization expense was $388 and $1,461 for the years ended December 31, 2020 and 2021, respectively. Coupon interest of $1,677 and $5,750 was recorded for the years ended December 31, 2020 and 2021, respectively, of which $1,677 and $1,438 was not paid and was recorded in other payables on the consolidated balance sheets as of December 31, 2020 and 2021, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES | |
INCOME TAXES | 18. INCOME TAXES Income tax expenses (benefits) The provision for income taxes is comprised of the following: Years Ended December 31, 2019 2020 2021 $ $ $ Income (loss) before income taxes Canada (61,880) (31,896) 5,922 United States 8,319 (113,262) 66,431 PRC including Hong Kong and Taiwan 204,632 189,398 (32,716) Japan 29,335 50,642 54,770 Other 28,215 50,381 51,313 208,621 145,263 145,720 Current tax expense (benefit) Canada (3,420) 36,226 (1,124) United States (4,803) (71,421) 15,937 PRC including Hong Kong and Taiwan 44,622 30,276 47,356 Japan 13,229 18,941 24,047 Other 7,057 8,233 16,865 56,685 22,255 103,081 Deferred tax expense (benefit) Canada (6,558) (10,792) 685 United States (2,412) 23,173 (1,604) PRC including Hong Kong and Taiwan (5,333) (17,998) (65,017) Japan (2,953) (10,571) (353) Other 2,637 (8,050) (948) (14,619) (24,238) (67,237) Total income tax expense (benefit) Canada (9,978) 25,434 (439) United States (7,215) (48,248) 14,333 PRC including Hong Kong and Taiwan 39,289 12,278 (17,661) Japan 10,276 8,370 23,694 Other 9,694 183 15,917 42,066 (1,983) 35,844 The Company mainly operates in Canada, PRC, Japan, the United States and Hong Kong. 18. INCOME TAXES (Continued) Canada CSI was incorporated in Ontario, Canada and was subject to both federal and Ontario provincial corporate income taxes at a rate of 26.5% for the year ended December 31, 2019, and for the period from January 2020 to June 2020. In July 2020, CSI filed articles of continuance, or the articles, to change its jurisdiction from the federal jurisdiction of Canada to the provincial jurisdiction of the Province of British Columbia. CSI is subject to federal, Ontario provincial and British Columbia provincial corporate income taxes at a rate of 26.5% for the period from July 2020 through December 31, 2021. 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, 2019, 2020 and 2021. United States Canadian Solar (USA) Inc. was incorporated in Delaware, U.S. and is subject to federal and state corporate income taxes at a rate of 22.9%, 22.2% and 26.4% for the years ended December 31, 2019, 2020 and 2021, respectively. Recurrent Energy Group Inc. was incorporated in Delaware, U.S. and is subject to federal and state corporate income taxes at a rate of 27.9%, 26.1% and 22.2% for the years ended December 31, 2019, 2020 and 2021, 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 31.8% for the years ended December 31, 2019, 2020 and 2021, 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, 2019, 2020 and 2021, respectively. Vietnam Canadian Solar Manufacturing Vietnam Co., Ltd was incorporated in Vietnam 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 uses a reduced statutory rate of 5% from 2020 to 2028. Thailand Canadian Solar Manufacturing (Thailand) Co.,Ltd. was incorporated in Thailand 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 2022 and the other in 2025. Hong Kong Canadian Solar International Ltd. was incorporated in Hong Kong, China, and are subject to Hong Kong profits tax at a rate of 16.5% for the years ended December 31, 2019, 2020 and 2021, respectively. PRC The other major operating subsidiaries, including CSI Solartronics (Suzhou) Co., Ltd., CSI Solar Technologies Inc., CSI Cells Co., Ltd., Canadian Solar Manufacturing (Luoyang) Inc., CSI Solar Co., Ltd. and Canadian Solar Manufacturing (Changshu) Inc., and Suzhou Sanysolar Materials Technology Co., Ltd. were governed by the PRC Enterprise Income Tax Law (“EIT Law”). Certain of the Company’s PRC subsidiaries, such as Suzhou Sanysolar Materials Technology Co., Ltd., Changshu Tegu New Material Technology Co., Ltd., CSI New Energy Development (Suzhou) Co., Ltd. (formerly known as Suzhou Gaochuangte New Energy Development Co., Ltd.), and Changshu Tlian Co., Ltd. were HNTEs and enjoyed preferential enterprise income tax rates. 18. INCOME TAXES (Continued) PRC (Continued) 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, 2019 2020 2021 Combined federal and provincial income tax rate 27 % 27 % 27 % Effect of permanent difference (1) % 4 % 3 % Effect of different tax rate on earnings in other jurisdictions 3 % (6) % 9 % Effect of tax holiday (4) % (1) % (3) % Effect of true-up (3) % (13) % 4 % Unrecognized tax provision — % — % (5) % Change in valuation allowance (3) % (14) % (3) % Effect of change in tax rate (1) % 2 % (7) % Others 2 % — % — % 20 % (1) % 25 % The aggregate amount and per share effect of tax holiday are as follows: Years Ended December 31, 2019 2020 2021 (In Thousands of U.S. Dollars, except per share data) The aggregate amount 7,956 1,287 4,466 Per share — basic 0.13 0.02 0.07 Per share — diluted 0.13 0.02 0.07 18. INCOME TAXES (Continued) PRC (Continued) The components of the deferred tax assets and liabilities are presented as follows: At December 31, At December 31, 2020 2021 $ $ Deferred tax assets: Accrued warranty costs 8,699 14,942 Bad debt allowance 3,218 12,175 Inventory write-down 3,121 1,404 Future deductible expenses 24,454 24,910 Depreciation and impairment difference of property, plant and equipment and solar power systems 30,138 24,561 Accrued liabilities related to antidumping, countervailing and other duty costs and true-up charges 406 39 Government subsidies 16,461 39,470 Net operating losses carry-forward 85,850 110,012 Unrealized foreign exchange loss and capital loss 1,221 491 Interest limitation 1,956 10,800 Others 30,958 47,690 Total deferred tax assets, gross 206,482 286,494 Valuation allowance (50,118) (45,682) Total deferred tax assets, net of valuation allowance 156,364 240,812 Deferred tax liabilities: Derivative assets 996 2,153 Depreciation difference of property, plant and equipment 17,027 27,776 Insurance recoverable 785 32 Unrealized foreign exchange gain 10,746 3,452 Others 5,234 19,046 Total deferred tax liabilities 34,788 52,459 Net deferred tax assets 121,576 188,353 Analysis as: Deferred tax assets 170,656 236,503 Deferred tax liabilities (49,080) (48,150) Net deferred tax assets 121,576 188,353 18. INCOME TAXES (Continued) PRC (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 5% or 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, 2021, all of the undistributed earnings of approximately $604,781 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. The amounts of unrecognized deferred tax liabilities for these earnings are in the range of $30,239 to $60,478 depending 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, 2019 2020 2021 $ $ $ Beginning balance 76,522 70,627 50,118 Additions (reversals) (6,156) (21,585) (4,671) Foreign exchange effect 261 1,076 235 Ending balance 70,627 50,118 45,682 As of December 31, 2021, the Company has accumulated net operating losses of $700,667 of which $398,744 will expire between 2022 and 2041, 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) Valuation allowance (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. The Company has recognized a valuation allowance of $50,118 and $45,682 as at December 31, 2020 and 2021, 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, 2020 and 2021 was $5,101 and $1,585, 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, 2019, 2020 and 2021, respectively. Years Ended December 31, 2019 2020 2021 $ $ $ Beginning balance 15,730 10,557 9,628 Addition for tax positions related to the current year 11 — — Reductions for tax positions from prior years/Statute of limitations expirations (5,720) (1,011) (3,763) Foreign exchange effect 536 82 (2) Ending balance 10,557 9,628 5,863 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 2015 to 2021 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 2016 through 2021 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 2016 retrospectively, and on transfer pricing matters for taxation years up to 2011 retrospectively. There is no statute of limitations in case of tax evasion in PRC. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
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, 2019 2020 2021 (In Thousands of U.S. Dollars, except share and per share data) Numerator: Net income attributable to Canadian Solar Inc. — basic $ 171,585 $ 146,703 $ 95,248 Dilutive effect of convertible notes 975 1,518 5,300 Net income attributable to Canadian Solar Inc. — diluted $ 172,560 $ 148,221 $ 100,548 Denominator: Denominator for basic calculation — weighted average number of common shares — basic 59,633,855 59,575,898 61,614,391 Diluted effects of share number from share options and RSUs 794,526 897,258 985,554 Dilutive effects of share number from convertible notes 349,315 1,833,663 6,272,157 Denominator for diluted calculation — weighted average number of common shares — diluted 60,777,696 62,306,819 68,872,102 Basic earnings per share $ 2.88 $ 2.46 $ 1.55 Diluted earnings per share $ 2.83 $ 2.38 $ 1.46 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, 2019 2020 2021 Share options and RSUs 41,950 187,083 3,877 |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
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 $73,042 as of December 31, 2021 primarily consists of (i) shareholder loans of $46,672 and $20,712 respectively to Horus and Recursos, each the Company’s 20% owned affiliates in Mexico, and (ii) trade receivables for module sales of $5,517 provided to various 20% owned affiliates Company The amount due to related parties as of December 31, 2021 was not material. 20. RELATED PARTY BALANCES AND TRANSACTIONS (Continued) Related party balances (Continued) Guarantees and loans Dr. Shawn Qu fully guaranteed loan facilities from two Chinese banks of RMB1,420,000 ($203,549) and RMB135,000 ($20,648) 2019 and 2020, respectively, and from a Chinese bank of RMB12,000 ($1,882) in 2021. Amounts drawn down under the facilities as of December 31, 2019, 2020 and 2021 were $82,937, nil and nil, respectively. The Company granted 26,691, 26,073 restricted share units to Dr. Shawn Qu in 2019 and 2020, respectively, on account of his having guaranteed these loan facilities. No grants on account of his having guaranteed these loan facilities were made in 2021. Sales and purchase contracts with affiliates In 2019, 2020 and 2021, the Company sold three, two and two solar power projects to CSIF, the Company’s 14.64% owned affiliate in Japan, respectively, in the amount of JPY5,889,000 ($53,874), JPY888,000 ($8,392) and JPY30,601,181 ($282,133), respectively, recorded in revenue. Additionally, in 2019, 2020 and 2021, the Company provided asset management service to CSIF in the amount of JPY281,094 ($2,573), JPY394,506 ($3,723) and JPY829,053 ($7,541), respectively, and provided O&M service to CSIF in the amount of JPY223,598 ($2,052), JPY805,021 ($7,564) and JPY981,161 ($9,195), respectively. In 2021, the Company sold modules to Salgueiro I Renewable Energy S.A., Salgueiro II Renewable Energy S.A. and Salgueiro III Renewable Energy S.A., each the Company’s 20% owned affiliate In 2021, the Company sold modules to Jaiba 3 Renewable Energy S.A., Jaiba 4 Renewable Energy S.A. and Jaiba 9 Renewable Energy S.A., each the Company’s 20% owned affiliate In 2021, the Company sold modules to Francisco SA I Renewable Energy S.A., Francisco SA II Renewable Energy S.A. and Francisco SA III Renewable Energy S.A., each the Company’s 20% owned affiliate In 2021, the Company sold modules to Lavras I Solar Renewable Energy S.A., Lavras II Solar Renewable Energy S.A., Lavras III Solar Renewable Energy S.A., Lavras IV Solar Renewable Energy S.A. and Lavras V Solar Renewable Energy S.A., each the Company’s 20% owned affiliate in Brazil In 2021, the Company provided battery storage solutions to Sonoran West Solar Holdings, LLC. And Sonoran West Solar Holdings 2, LLC, each the Company’s 20% owned In 2019,2020 and 2021, the Company purchased raw materials from Luoyang Jiwa New Material Technology Co., Ltd., the Company’s 20% owned affiliate, in the amount of RMB18,124 ($2,584), RMB31,388 ($4,545) and RMB19,378 ($2,995), respectively. In 2021, the Company purchased raw materials from Yancheng Jiwa New Material Technology Co., Ltd., the Company’s 20% owned affiliate, in the amount of RMB10,831 ($1,688). In 2020, the Company provided EPC services to Lavras Solar Holding S.A., the Company’s 20% owned affiliate in Brazil, in the amount of BRL5,061 ($974). 20. RELATED PARTY BALANCES AND TRANSACTIONS (Continued) Sales and purchase contracts with affiliates (Continued) In 2019, the Company purchased raw materials from Suzhou iSilver Materials Co., Ltd., the Company’s former 14.63% owned affiliate in PRC, in the amount of RMB350,590 ($50,359). In December 2020, the Company fully disposed of its ownership of Suzhou iSilver Materials Co., Ltd. to an unrelated third party. From January 1, 2020 through the date of disposal, the Company purchased raw materials in the amount of RMB168,032 ($24,301) from this former affiliate. In 2019, the Company purchased equipment from Suzhou Kzone Equipment Technology Co., Ltd., the Company’s former 32% owned affiliate in PRC, in the amount of RMB61,174 ($8,787). In July 2020, the Company fully disposed of its ownership of Suzhou Kzone Equipment Technology Co., Ltd. to an unrelated third party. From January 1, 2020 through the date of disposal, the Company purchased raw materials in the amount of RMB7,381 ($1,048) from this former affiliate. In 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 ZAR586,832 ($40,970). |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 21. COMMITMENTS AND CONTINGENCIES a) Capital commitments As of December 31, 2021, the commitments for the purchase of property, plant and equipment were approximately $167,871, and the payment schedule for the commitments is as follow: Year Ending December 31: $ 2022 67,448 2023 49,475 2024 50,948 Total 167,871 21. COMMITMENTS AND CONTINGENCIES (Continued) b) Contingencies Class Action Lawsuits In January 2015, the plaintiff in a 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 approved a settlement of the action on October 30, 2020. The settlement is no admission of liability or wrongdoing by the Company or any of the other defendants. 21. COMMITMENTS AND CONTINGENCIES (Continued) b) Contingencies (Continued) Solar 1 On October 17, 2012, the United States Department of Commerce, or 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. On November 30, 2012, the U.S. International Trade Commission, or USITC, determined that imports of CSPV cells had caused material injury to the U.S. CSPV industry. The USITC’s determination was subsequently affirmed by the U.S. Court of International Trade, or CIT, and the U.S. Court of Appeals for the Federal Circuit, or Federal Circuit. As a result of these determinations, the Company was required to pay cash deposits on Chinese-origin CSPV cells imported into the U.S., whether or not incorporated into modules. The rates applicable to the Company were 13.94% (antidumping duty) and 15.24% (countervailing duty). The Company paid all the cash deposits due under these determinations. Several parties challenged the determinations of the USITC in appeals to the CIT. On August 7, 2015, the CIT sustained the USITC’s final determination and on January 22, 2018, the Federal Circuit upheld the CIT’s decision. There was no further appeal to the U.S. Supreme Court and, therefore, this decision is final. The rates at which duties will be assessed and payable are subject to administrative reviews. The USDOC published the final results of the first administrative reviews in July 2015. As a result of these decisions, the duty rates applicable to the Company were revised to 9.67% (antidumping duty) and 20.94% (countervailing duty). The assessed rates were appealed to the CIT. The CIT affirmed the USDOC’s countervailing duty rates, and no change was made to the Company’s countervailing duty rate. This decision by the CIT was not appealed to the Federal Circuit. The CIT likewise affirmed USDOC’s antidumping duty rates, and no change was made to the Company’s antidumping duty rate. This decision by the CIT was, however, appealed to the Federal Circuit, which upheld the CIT’s decision. There was no further appeal to the U.S. Supreme Court and, therefore, this decision is final. The USDOC published the final results of the second administrative reviews in June 2016 (antidumping duty) and July 2016 (countervailing duty). As a result of these decisions, the antidumping duty rate applicable to the Company was reduced to 8.52% (from 9.67%) and then to 3.96% (from 8.52%). Because the Company is not subject to the second administrative review of the countervailing duty order, the Company’s countervailing duty rate remained at 20.94%. The antidumping duty rates were appealed to the CIT. The CIT affirmed the USDOC’s second antidumping duty rate. This decision by the CIT was appealed to the Federal Circuit, which in June 2020 reversed the CIT’s decision, in part, and directed the USDOC to reconsider certain issues related to its final determination. The USDOC submitted its antidumping duty redetermination to the CIT in September 2021. In December 2021, the CIT sustained USDOC’s antidumping duty redetermination. As a result, the Company’s antidumping duty rate was reduced to 0.00% (from 3.96%). There was no further appeal to the Federal Circuit of the USDOC’s antidumping duty redetermination and, therefore, this decision is final. 21. COMMITMENTS AND CONTINGENCIES (Continued) b) Contingencies (Continued) The USDOC published the final results of the third administrative reviews in June 2017 (antidumping duty) and July 2017 (countervailing duty), and later amended in October 2017. As result of these decisions, the duty rates applicable to the Company were changed to 13.07% (from 8.52%) (antidumping duty) and 18.16% (from 20.94%) (countervailing duty). The assessed rates were appealed to the CIT. The CIT has twice remanded the antidumping duty appeal to the USDOC to consider adjustments to the Company’s rate. Pursuant to CIT’s remand orders, the USDOC issued a redetermination. The antidumping duty rate applicable to the Company was reduced to 4.12% (from 13.07%) and then further to 3.19% (from 4.12%). In June 2020, the CIT issued its third opinion sustaining the USDOC’s remand redetermination. The Company filed a motion for reconsideration with the CIT advocating for an even lower antidumping duty rate. In September 2020, the CIT granted the Company’s motion for reconsideration and remanded to USDOC for further consideration of its antidumping duty rate. The USDOC submitted its antidumping duty redetermination to the CIT in September 2021. In December 2021, the CIT sustained USDOC’s antidumping duty redetermination. As a result, the Company’s antidumping duty rate was reduced to 0.00% (from 3.19%). There was no further appeal to the Federal Circuit of the USDOC’s antidumping duty redetermination and, therefore, this decision is final. The CIT has likewise twice remanded the countervailing duty appeal to the USDOC to consider adjustments to the Company’s rate. In August 2020, the CIT sustained USDOC’s second remand redetermination. As a result, the Company’s countervailing duty rate was reduced to The USDOC published the final results of the fourth administrative reviews in July 2018 (both antidumping duty and countervailing duty), with the countervailing duty rate later amended in October 2018. Because the Company was not subject to the fourth administrative review of the antidumping duty order, its antidumping duty rate remained at 13.07%. In this review, the countervailing duty rate applicable to the Company was reduced to 11.59% (from 18.16%). The countervailing duty rates were appealed to the CIT. The CIT remanded the countervailing duty appeal to the USDOC to consider adjustments to the Company’s rate. Pursuant to the CIT’s remand orders, the USDOC made a redetermination that reduced the Company’s countervailing duty rate to 5.02% (from 11.59%). The Company appealed the CIT decision to the Federal Circuit to contest USDOC’s continued assessment of a countervailing duty rate related to the alleged electricity subsidy program. In January 2022, the Federal Circuit sustained the CIT’s decision, and no change was made to the Company’s countervailing duty rate. There was no further appeal to the U.S. Supreme Court and, therefore, this The USDOC published the final results of the fifth administrative reviews in July 2019 (antidumping duty) and August 2019 (countervailing duty). The antidumping duty rate applicable to the Company was lowered to 4.06% (from 13.07%). The countervailing duty rate applicable to the Company was reduced to 9.70% (from 11.59%). The countervailing duty final results were amended to correct ministerial errors in December 2019, but this amendment resulted in no change to the Company’s 9.70% rate. The countervailing duty and antidumping duty rates were appealed to the CIT. Pursuant to the CIT’s remand order in the antidumping appeal, USDOC made a remand redetermination that reduced the Company’s antidumping duty rate to 3.30% (from 4.06%). In May 2021, the CIT sustained USDOC’s antidumping duty redetermination. There was no further appeal to the Federal Circuit of the USDOC’s antidumping duty redetermination and, therefore, this decision is final. The CIT remanded the countervailing duty appeal to the USDOC to consider adjustments to the Company’s rate. The USDOC submitted its countervailing duty redetermination to the CIT in December 2021. A decision is expected in mid-2022. The USDOC published the final results of the sixth administrative reviews in October 2020 (antidumping duty) and December 2020 (countervailing duty). USDOC assessed an antidumping duty rate of 68.93% (from 13.07%). The antidumping duty final results were amended to correct ministerial errors in December 2020 and as a result, the antidumping duty rate applicable to the Company was raised to 95.50% (from 68.93%). USDOC assessed a countervailing duty rate of 12.67% (from 9.70%). The countervailing duty final results were amended to correct ministerial errors in April 2021 and, as a result, the Company’s countervailing duty rate was reduced to 11.97% (from 12.67% ). The antidumping duty rates were appealed to the CIT. In April 2022, the CIT remanded the antidumping duty appeal to the USDOC to consider adjustments to the Company’s rate. The Company did not appeal USDOC’s final results of its sixth administrative review of the countervailing duty order and, therefore, this decision is final and the Company’s countervailing duty rate is expected to remain at 21. COMMITMENTS AND CONTINGENCIES (Continued) b) Contingencies (Continued) The USDOC published the final results of the seventh administrative reviews in August 2021 (countervailing duty) and October 2021 (antidumping duty). The antidumping duty rate applicable to the Company was lowered to 0.00% (from 95.50%). The countervailing duty rate applicable to Canadian Solar International Limited (“CSIL”) was raised to 19.28% (from 11.97%). USDOC did not change the rate of 11.97% for Canadian Solar Manufacturing (Changshu) Inc. and Canadian Solar Manufacturing (Luoyang) Inc. because the countervailing duty review was rescinded for both these companies. The Company did not appeal USDOC’s final results of its seventh administrative reviews and, therefore, these decisions are final. The Company’s antidumping duty rate will remain at 0.00% and its countervailing duty rate is expected to remain at 19.28% for CSIL. The eighth and ninth antidumping duty and countervailing duty administrative reviews were initiated in February 2021 and February 2022 and are currently underway. The USDOC is currently scheduled to release the final results of the eighth administrative reviews on June 21, 2022 (antidumping duty) and June 29, 2022 (countervailing duty), subject to potential extensions. USDOC will likely issue preliminary results of the ninth administrative reviews in late 2022 or early 2023. The final results of the eighth and ninth administrative reviews may result in duty rates that differ from the previous duty rates and cash deposit rates applicable to the Company. These duty rates could materially and adversely affect the Company’s U.S. import operations and increase its cost of selling into the U.S. market. Between 2017 and 2019, the USDOC and USITC conducted five-year sunset reviews and determined to continue the Solar 1 antidumping and countervailing duty orders. In March 2018, the USDOC published the results of its expedited first sunset reviews and concluded that revocation of the Solar 1 orders would likely lead to a continuation or recurrence of dumping and a countervailable subsidy. The Company did not participate in USDOC’s first sunset review. The Company did, however, participate in the USITC’s first sunset review and requested that the Solar 1 duties be revoked. The USITC issued an affirmative determination in March 2019 declining to revoke the Solar 1 orders and finding that such revocation would be likely to lead to a continuation or recurrence of material injury to the U.S. industry within a reasonably foreseeable time. As a result, the Solar 1 orders remain in effect. 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” refers 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. On December 23, 2014, the USDOC issued final affirmative determinations with respect to its antidumping and countervailing duty investigation on these CSPV products. On January 21, 2015, the USITC determined that imports of these CSPV products had caused material injury to the U.S. CSPV industry. As a result of these determinations, the Company is required to pay cash deposits on these CSPV products, the rates of which applicable to the Company’s Chinese CSPV products were 30.06% (antidumping duty) and 38.43% (countervailing duty). The USDOC’s determination and the assessed countervailing duty rates were appealed to the CIT and the Federal Circuit. In March 2019, the Federal Circuit affirmed the CIT’s decision confirming the USDOC’s determination but reduced the Company’s countervailing duty rate to 33.58% (from 38.43%). There was no further appeal to the U.S. Supreme Court and, therefore, this decision is final. 21. COMMITMENTS AND CONTINGENCIES (Continued) b) Contingencies (Continued) The antidumping cash deposit rate applicable to the Company’s Taiwanese CSPV products subject to Solar 2 orders varied by solar cell producer. The Company paid all the cash deposits due under these determinations. There is no countervailing duty order on Taiwan Solar 2 products. The rates at which duties will be assessed and payable are subject to administrative reviews. The USDOC published the final results of the first administrative reviews in July 2017 (China and Taiwan antidumping duty orders) and September 2017 (China-only countervailing duty order). Because the Company is not subject to the first administrative reviews of the Solar 2 orders, the Company’s duty rates will remain at 30.06% (antidumping duty) and 33.58% (countervailing duty) for the Company’s Chinese CSPV products. The Company’s antidumping duty rates for the Company’s Taiwanese CSPV products had ranged from 3.56% to 4.20%, until they were changed to 1.52% to 3.78% in June 2019. The second administrative reviews for the Solar 2 China antidumping and countervailing duty orders were rescinded, meaning that there is no change in the Chinese antidumping and countervailing duty rates applicable to the Company’s Chinese CSPV products 30.06% (antidumping duty) and 33.58% (countervailing duty). The USDOC published the final results of the second administrative review for the Taiwan antidumping duty order (there is no countervailing duty order) in June 2018. The rate applicable to the Company is 1.33%. There is no ongoing litigation related to the Taiwan antidumping duty rate. The Company was not subject to the third administrative reviews of the Chinese orders and, therefore, the Company’s duty rates remained unchanged at 30.06% (antidumping duty) and 33.58% (countervailing duty) for the Company’s Chinese CSPV products. The third administrative review of the Taiwan antidumping order concluded in mid-2019. The rate assessed to the Company was 4.39% (from 1.33%). There is no ongoing litigation related to the Taiwan antidumping duty rate. The USDOC rescinded the fourth administrative reviews of the Solar 2 China antidumping duty and countervailing duty orders in late 2019. The Company’s duty rates will remain unchanged at 30.06% (antidumping duty) and 33.58% (countervailing duty) for the Company’s Chinese CSPV products. The rate assessed to the Company in the fourth administrative review of the Taiwan antidumping order was 2.57% (from 4.39%). The USDOC also found that certain Canadian Solar entities had no shipments during this period of this review. The USDOC rescinded the fifth administrative reviews of the Solar 2 China antidumping and countervailing duty orders. The Company’s duty rates will remain unchanged at 30.06% (antidumping duty) and 33.58% (countervailing duty) for the Company’s Chinese CSPV products. The USDOC published the final results of the fifth administrative review of the Taiwan antidumping duty order in September 2021. The USDOC determined that the Canadian Solar entities subject to the fifth administrative review had no shipments during the period of review and therefore, the Company’s antidumping duty rates will remain unchanged for its Taiwanese CSPV products. The USDOC did not initiate the sixth administrative reviews of the Solar 2 China antidumping and countervailing duty orders because no parties requested reviews. The Company’s duty rates will remain unchanged at 30.06% (antidumping duty) and 33.58% (countervailing duty) for its Chinese CSPV products. The USDOC published the final results of the sixth administrative review of the Taiwan antidumping duty order in March 2022. The USDOC determined that the Canadian Solar entities subject to the sixth administrative review had no shipments during the period of review and therefore, the Company’s antidumping duty rates will remain unchanged for its Taiwanese CSPV products. 21. COMMITMENTS AND CONTINGENCIES (Continued) b) Contingencies (Continued) The USDOC initiated the seventh administrative reviews of the Solar 2 China antidumping and countervailing duty orders. The countervailing duty review was not initiated with respect to all Canadian Solar entities. The countervailing duty rates will remain unchanged for all entities for whom the review was not initiated. The USDOC initiated the seventh administrative review of the Taiwan antidumping duty order in April 2022 with respect to certain of the Canadian Solar entities. The USDOC will likely issue the preliminary results of the seventh administrative review in late 2022. In 2020, the USDOC and USITC conducted five-year sunset reviews and determined to continue the Solar 2 antidumping and countervailing duty orders. In May 2020, the USDOC published the results of its expedited first sunset reviews and concluded that revocation of the Solar 2 orders would likely lead to a continuation or recurrence of dumping and a countervailable subsidy. The USITC issued an affirmative determination on September 4, 2020, declining to revoke the Solar 2 orders and finding that such revocation would be likely to lead to a continuation or recurrence of material injury to the U.S. industry within a reasonably foreseeable time. As a result, the Solar 2 orders are expected to remain in effect through at least 2025. 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. On January 23, 2018, the President of the United States imposed a safeguard measure on imports of CSPV cells, whether or not partially or fully assembled into other products such as modules, consisting of (1) a tariff-rate quota for four years on imports of CSPV cells not partially or fully assembled into other products, with (a) an in-quota quantity of 2.5 gigawatts, and (b) a tariff rate applicable to over-quota CSPV cells of 30%, declining annually by five percentage points to 25% in the second year, 20% in the third year, and 15% in the fourth year; and (2) a 30% tariff for four years on CSPV modules, declining annually by five percentage points to 25% in the second year, 20% in the third year, and 15% in the fourth year. 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. On June 13, 2019 and following an abbreviated public comment period, the Office of the U.S. Trade Representative (or USTR) granted an exclusion from the safeguard measure for solar panels comprising solely bifacial solar cells (or bifacial solar panels). In October 2019, USTR determined to withdraw this exclusion. Invenergy Renewables LLC (or Invenergy) promptly contested USTR’s withdrawal determination at the CIT and secured a temporary restraining order against USTR in November 2019. In December 2019, the CIT preliminarily enjoined USTR’s withdrawal due to procedural deficiencies. USTR then sought and was granted a voluntary remand to reconsider its withdrawal determination for bifacial solar panels. In early 2020, USTR conducted a renewed notice-and-comment process regarding the exclusion for bifacial solar panels from the safeguard measures. In April 2020, USTR again determined that the exclusion for bifacial solar panels should be withdrawn based on the findings of its second notice-and-comment process. Notwithstanding, in May 2020 the CIT denied without prejudice the United States’ motion to dissolve the preliminary injunction and to resume the collection of the safeguard tariff on entries of bifacial modules. USTR appealed the CIT’s interlocutory decision to the Federal Circuit in July 2020, but subsequently dismissed its appeal in January 2021. The United States continued to litigate the merits of USTR’s April 2020 withdrawal of the bifacial exclusion before the CIT. On November 17, 2021, the CIT vacated USTR’s April 2020 withdrawal in Invenergy Renewables LLC v. United States 21. COMMITMENTS AND CONTINGENCIES (Continued) b) Contingencies (Continued) In early 2020, the USITC conducted a midterm review of the safeguard order, issuing its monitoring report in February 2020. Additionally, in March 2020, at the request of the 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. The USITC found that increasing the tariff-rate quota (TRQ) on CSPV cells (an integral component of CSPV modules) would likely result in a substantial increase in U.S. module producers’ production, capacity utilization, and employment. The President must consider the USITC’s views but is not required to follow them or to take any action in the safeguard midterm review. On October 10, 2020, President Trump issued Proclamation 10101 pertaining to the midterm review. Proclamation 10101 authorized the following: (1) the revocation of the bifacial module exclusion effective October 25, 2020; (2) the reduction of the safeguard tariff to 18% ad valorem (as opposed to 15% ad valorem as prescribed in the original safeguard measures) effective February 7, 2021; and (3) the delegation to USTR of the President’s authority to ask the USITC to assess whether the safeguard measures should be extended. The President decided not to follow the USITC’s recommendation to increase the TRQ applicable to CSPV cells. Following the issuance of Proclamation 10101, Invenergy and other plaintiffs (AES Distributed Energy, Inc., Clearway Energy Group LLC, EDF Renewables, Inc. (“EDF”), the Solar Energy Industries Association (“SEIA”)) sought to challenge the Proclamation and filed motions to amend their complaints with the CIT. The CIT ultimately denied plaintiffs’ motions and refused to extend the bifacial module exclusion beyond October 24, 2020 as a consequence of the Proclamation (as opposed to USTR’s withdrawals). Subsequently, on December 29, 2020, Invenergy and another set of plaintiffs (SEIA, NextEra Energy, Inc., and EDF) commenced new and separate litigation once again challenging Proclamation 10101 in the CIT. This new complaint alleges that the President unlawfully terminated the bifacial module exclusion and revised the safeguard tariff, effective February 7, 2021, to be 18% ad valorem (as opposed to the originally announced 15% ad valorem). On November 16, 2021, the CIT held in Solar Energy Industries Association et al. v. United States (SEIA) that the President acted outside of his statutory authority in issuing Proclamation 10101, and enjoined the Government from enforcing that proclamation. This judgment had the effect of reinstating the exclusion of bifacial modules from the safeguard tariffs and lowering the fourth year safeguard tariff to 15% ad valorem. On January 14, 2022, the Government filed a notice of appeal of SEIA to the Federal Circuit and the appeal remains ongoing. The Federal Circuit’s decision is expected in late 2022 or early 2023. In 2021, the USITC conducted an extension investigation of the safeguard measure, in response to petitions by representatives of the domestic industry. In December 2021, the USITC issued its determination and report finding that the safeguard order continues to be necessary to prevent or remedy the serious injury to the domestic industry, and that there is evidence that the domestic industry is making a positive adjustment to import competition. On February 4, 2022, President Biden issued a Proclamation extending the safeguard measure on U.S. imports of CSPV products for four years until February 6, 2026. The Proclamation doubles the volume of the TRQ on imported CSPV cells to 5.0 gigawatts and maintains a tariff on imports of CSPV modules and above-quota CSPV cells, beginning at a rate of 14.75% ad valorem and declining annually by 0.25 percentage points to 14.50% in the sixth year, 14.25% in the seventh year, and 14% in the eighth year. The Proclamation also excludes bifacial panels from the extended safeguard measure and authorizes USTR to negotiate agreements with Canada and Mexico that could lead to the exclusion of those countries from the safeguard measure. 21. COMMITMENTS AND CONTINGENCIES (Continued) b) 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 Canadian Solar 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 may initiate an expiry review pursuant to Subsection 76.03(3) of the Special Import Measures Act (“SIMA”) before the end of 5 years of its finding. If the CITT does not initiate such an expiry review pursuant to Subsection 76.03(3) of SIMA, the finding is deemed to have been rescinded as of the expiry of the five years. On April 1, 2020, the CITT initiated the preliminary stage of the expiry review regarding the above finding. The expiry review was concluded on March 25, 2021. The CITT determined to continue its aforementioned finding to impose definitive duties on imports of Chinese solar modules and laminates into Canada. As a result the Canadian Solar-specific subsidies rate of RMB0.014 per Watt remains unchanged. The subsidies rate applies for a period of five years. The CITT is required to conduct a further expiry review at the end of that period, being July 2, 2025. Such subsidies rate does not have a material negative effect upon the Company’s results of operations because it has module manufacturing capacity in Ontario and do not rely on Chinese solar modules to serve its Canadian business. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
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. From 2016 through the third quarter of 2020, the Company had been operating in two principal businesses: MSS and Energy. The MSS business comprised primarily the design, development, manufacture and sale of solar modules, other solar power products and solar system kits. The MSS business also provided engineering, procurement and construction (EPC) services. The Energy business comprised primarily the development and sale of solar projects, operating solar power projects, the sale of electricity and operating and maintenance (O&M) services. The module sales from the Company’s MSS business to its Energy business were on terms and conditions similar to sales to third parties. 22. SEGMENT INFORMATION (Continued) In July 2020, the Company reached a strategic decision to pursue a listing of its subsidiary, CSI Solar Co., Ltd., in China. From November 2021, the Company completed the transfer of the China solar power system and project assets from CSI Solar to the Global Energy segment to avoid any potential competition between the Company and its CSI Solar subsidiary, as part of the CSI Solar carve-out listing process. To align with the objective of ASC 280, Segment Reporting (“Topic 280”) and present the Company’s disaggregated financial information consistent with the management approach, the Company reports its financial performance, including revenue, gross profit and income from operations, based on the following two reportable segments: ● Global Energy , which includes all of the Company’s global project development activities for both solar and battery storage project development. The Global Energy segment develops both stand-alone solar and stand-alone battery storage projects, as well as hybrid solar plus storage projects. Its monetization strategies vary between develop-to-sell, build-to-sell, and build-to-own, depending on business strategies and market conditions, with the goal of maximizing returns, accelerating cash turn, and minimizing capital risk. ● CSI Solar , which consists of solar module manufacturing and total system solutions, including inverters, solar system kits and EPC (engineering, procurement and construction) services. The CSI Solar segment also includes the Company’s battery storage integration business, delivering bankable, end-to-end, turnkey battery storage solutions for utility scale, commercial and industrial, and residential applications. These storage systems solutions are complemented with long-term service agreements, including future battery capacity augmentation services. The distinction of the two battery storage businesses is that the former, Global Energy, is in the project development business, including sourcing land, interconnection, structuring power purchase agreements and other permits and requirements for battery storage projects, whereas the latter, CSI Solar, is in the system integration business, delivering turnkey battery storage technology solutions. The module and EPC sales from the Company’s CSI Solar business to its Global Energy business are on terms and conditions similar to sales to third parties. Comparative period financial information for 2019 by reportable segment has been recast to conform to current presentation. The Company continually monitors and reviews its segment reporting structure in accordance with Topic 280 to determine whether any changes have occurred that would impact its reportable segments. The Company’s CODM reviews net revenue and gross profit and does not review balance sheet information by segment. The following table summarizes the Company’s revenues, gross profit and income from operations generated from each segment: Years Ended December 31, 2021 Elimination and unallocated CSI Solar Global Energy items (1) Total $ $ $ $ Net revenues 4,371,603 1,124,083 (218,517) 5,277,169 Cost of revenues 3,689,126 930,099 (251,368) 4,367,857 Gross profit 682,477 193,984 32,851 909,312 Income from operations (2) 74,132 97,179 19,070 190,381 22. SEGMENT INFORMATION (Continued) Years Ended December 31, 2020 Elimination and unallocated CSI Solar Global Energy items (1) Total $ $ $ $ Net revenues 3,105,044 726,167 (354,716) 3,476,495 Cost of revenues 2,496,153 577,052 (286,624) 2,786,581 Gross profit 608,891 149,115 (68,092) 689,914 Income from operations (2) 253,105 53,414 (86,089) 220,430 Years Ended December 31, 2019 Elimination and unallocated CSI Solar Global Energy items (1) Total $ $ $ $ Net revenues 2,591,154 718,735 (109,306) 3,200,583 Cost of revenues 1,977,502 604,856 (100,272) 2,482,086 Gross profit 613,652 113,879 (9,034) 718,497 Income from operations (2) 267,642 18,795 (27,558) 258,879 (1) Includes inter-segment elimination, and unallocated corporate costs not considered part of management’s evaluation of reportable segment operating performance. (2) Income from operations reflects management’s allocation and estimate as some services are shared by the Company’s two reportable 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, 2019 2020 2021 $ $ $ The Americas: —United States 852,231 696,101 1,590,573 —Brazil 395,303 284,478 442,603 —Mexico 94,446 118,846 139,611 —Canada 30,330 100,284 30,792 —Others 29,731 21,396 76,015 1,402,041 1,221,105 2,279,594 Asia: —PRC 317,077 504,656 1,207,003 —Japan 372,687 560,701 509,233 —India 70,893 61,141 142,300 —Thailand 12,753 6,108 59,451 —Cyprus 2,175 13,265 51,038 —Pakistan 10,581 15,417 48,838 —Vietnam 39,268 289,621 19,956 —United Arab Emirates 43,311 53,981 6,168 —Korea 72,552 25,896 3,413 —Others 76,786 90,054 91,670 1,018,083 1,620,840 2,139,070 Europe and other regions: —Germany 109,119 119,035 231,995 —Australia 313,167 120,403 165,772 —Netherlands 68,770 96,372 104,715 —Spain 78,228 138,972 100,658 —South Africa 93,911 49,375 90,761 —Czech 17,717 16,144 34,604 —France 13,516 29,974 25,980 —United Kingdom 33,158 8,842 7,749 —Others 52,873 55,433 96,271 780,459 634,550 858,505 Total net revenues 3,200,583 3,476,495 5,277,169 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, 2020 and 2021 by geographic region, based on the physical location of the assets: At December 31, At December 31, 2020 2021 $ $ PRC 1,002,409 1,230,613 Thailand 295,240 266,870 Japan 204,515 191,680 Argentina 64,208 68,508 Mexico 12,388 68,331 United States 64,009 65,700 Brazil 16,109 63,716 Australia 76,330 15,024 Canada 8,898 7,050 Others 46,432 55,905 Total long-lived assets 1,790,538 2,033,397 The following table summarizes the Company’s revenues generated from each product or service: Years Ended December 31, 2019 2020 2021 $ $ $ CSI Solar: Solar modules 2,012,059 2,348,724 3,328,301 Solar system kits 116,449 157,656 302,133 Battery storage solutions — 7,899 222,655 China energy/EPC (includes electricity sales) 58,096 175,388 178,830 Others 295,244 60,661 121,167 Global Energy: Solar and battery storage projects 652,050 654,827 1,064,178 O&M and asset management services 19,750 26,386 35,334 Others (includes electricity sales) 46,935 44,954 24,571 Total net revenues 3,200,583 3,476,495 5,277,169 |
MAJOR CUSTOMERS
MAJOR CUSTOMERS | 12 Months Ended |
Dec. 31, 2021 | |
MAJOR CUSTOMERS | |
MAJOR CUSTOMERS | 23. MAJOR CUSTOMERS No customers accounted for 10% or more of total net revenues for the years ended December 31, 2019, 2020 and 2021. The accounts receivable, net from three customers with the largest receivable balances represents 7%, 4% and 4% of the balance of the account at December 31, 2021, and 7%, 3% and 3% of the balance of the account at December 31, 2020, respectively. The balance from the customer with the largest receivable balance is $27,014 and $42,812 as of December 31, 2020 and 2021, respectively. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2021 | |
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 2021. The expense incurred by the Company to these defined contributions schemes was $11,738, $8,064 and $14,362 for the years ended December 31, 2019, 2020 and 2021, respectively. In addition, in 2021, 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 $11,409, $11,486 and $13,584 for the years ended December 31, 2019, 2020 and 2021, respectively. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
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. In June 2020, the shareholders approved an amendment to the Plan to extend the term of the Plan for a further ten years period. As a result, the Plan will expire on, and no awards may be granted after, June 30, 2029. 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 Activities During the year ended December 31, 2021, no options were exercised. The total intrinsic value of options exercised during the years ended December 31, 2019 and 2020 was $1,422 and $893, respectively. As of December 31, 2021, there were 26,291 options outstanding with a weighted average exercise price of $9.33 and weighted average remaining contract terms of 1.4 year. The intrinsic value of outstanding options as of December 31, 2021 was $577. No compensation cost on options was recognized in the years ended December 31, 2019, 2020 and 2021. RSUs Activities The Company granted 706,637, 1,105,640 and 2,161,098 RSUs in 2019, 2020 and 2021, 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 second The fair market value of the Company’s ordinary shares at the date of grant resulted in total compensation cost of approximately $12,179, $24,918 and $55,822 that will be recognized ratably over the vesting period for the RSUs granted in 2019, 2020 and 2021, respectively. In the years ended December 31, 2019, 2020 and 2021, the Company recognized $10,682, $12,350 and $8,808 in compensation expense associated with these awards, respectively. As of December 31, 2021, there was $22,002 of total unrecognized share-based compensation related to unvested RSUs, which is expected to be recognized over a weighted-average period of 2.35 years. 25. SHARE-BASED COMPENSATION (Continued) RSUs Activities (Continued) A summary of the RSU activity is as follows: Weighted Average Number of Grant-Date Shares Fair Value (in whole US dollars) Unvested at January 1, 2021 1,888,753 19.78 Granted 2,161,098 26.10 Vested (562,376) 17.11 Forfeited (152,172) 22.04 Unvested at December 31, 2021 3,335,303 24.23 The total fair value of RSUs vested during the years ended December 31, 2019, 2020 and 2021 was $10,733, $14,420 and $21,628, respectively. |
Additional Information - Financ
Additional Information - Financial Statement Schedule I | 12 Months Ended |
Dec. 31, 2021 | |
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, cash flows 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, 2021 of $602,460, 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, 2020 2021 (In Thousands of U.S. Dollars, except share data) ASSETS Current assets: Cash and cash equivalents 33,709 27,432 Restricted cash 1,316 — Amounts due from subsidiaries, net 288,226 — Derivative assets 1,111 521 Prepaid expenses and other current assets 22,672 5,318 Total current assets 347,034 33,271 Investment in subsidiaries 1,525,951 1,992,658 Investments in affiliates 5,322 10,755 Deferred tax assets 21,358 1,946 Other non-current assets 40,456 45,213 TOTAL ASSETS 1,940,121 2,083,843 LIABILITIES AND EQUITY Current liabilities: Short-term borrowings 80,000 — Amounts due to subsidiaries, net — 43,415 Other current liabilities 32,969 5,676 Total current liabilities 112,969 49,091 Convertible notes 223,214 224,675 Deferred tax liabilities 20,169 1,562 Liability for uncertain tax positions 13,347 7,432 TOTAL LIABILITIES 369,699 282,760 Equity: Common shares — no par value: unlimited authorized shares, 59,820,384 and 64,022,678 shares issued outstanding 687,033 835,543 Additional paid-in capital (28,236) (19,428) Retained earnings 940,304 1,035,552 Accumulated other comprehensive loss (28,679) (50,584) TOTAL EQUITY 1,570,422 1,801,083 TOTAL LIABILITIES AND EQUITY 1,940,121 2,083,843 FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF OPERATIONS Years Ended December 31, 2019 2020 2021 (In Thousands of U.S. Dollars) Net revenues 4,351 2,170 341 Cost of revenues 4,188 — — Gross profit 163 2,170 341 Operating expenses: Selling and distribution expenses 1,727 2,174 766 General and administrative expenses 29,093 49,688 9,177 Research and development expenses 462 692 182 Other operating income, net — — (282) Total operating expenses 31,282 52,554 9,843 Loss from operations (31,119) (50,384) (9,502) Other income (expenses): Interest expense (3,005) (9,628) (19,677) Interest income 25,272 30,536 20,249 Gain (loss) on change in fair value of derivatives, net (5,193) 25,341 4,043 Foreign exchange gain (loss) (11,318) 13,768 (3,674) Investment loss (116,879) — — Other income (expenses), net: (111,123) 60,017 941 Income (loss) before income taxes and equity in earnings of subsidiaries (142,242) 9,633 (8,561) Income tax benefit (expense) 5,230 (34,223) 2,424 Equity in earnings of subsidiaries 308,597 171,293 101,385 Net income 171,585 146,703 95,248 FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF COMPREHENSIVE INCOME Years Ended December 31, 2019 2020 2021 (In Thousands of U.S. Dollars) Net income 171,585 146,703 95,248 Other comprehensive income (loss) (net of tax of nil) 542 80,928 (21,905) Comprehensive income 172,127 227,631 73,343 FINANCIAL INFORMATION OF PARENT COMPANY STATEMENTS OF CASH FLOWS Years Ended December 31, 2019 2020 2021 (In Thousands of U.S. Dollars) Operating activities: Net income 171,585 146,703 95,248 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 154 156 150 Accretion of convertible notes — 388 1,461 Loss on disposal of subsidiaries 116,879 — — Loss (gain) on change in fair value of derivatives 5,193 (25,341) (4,043) Allowance for credit losses (83) 357 — Equity in earnings of subsidiaries (308,597) (171,293) (101,385) Share-based compensation 10,682 12,350 8,808 Changes in operating assets and liabilities: Amounts due from subsidiaries (43,630) 287,865 (206,892) Prepaid expenses and other current assets 17,012 (13,183) 17,353 Other non-current assets (1,158) 28,459 (4,907) Amounts due to subsidiaries 183,675 (340,502) (42,224) Other current liabilities (2,707) 31,809 (27,293) Liability for uncertain tax positions 408 306 (5,915) Net deferred tax assets (1,292) (468) 805 Net settlement of derivatives (11,125) 19,517 4,633 Net cash provided by (used in) operating activities 136,996 (22,877) (264,201) Investing activities: Investments in subsidiaries (36,146) (126,487) (138,456) Investments in affiliates (2,483) (2,766) (5,273) Funding of loans to subsidiaries (40,600) (264,848) (201,192) Repayment of loans from subsidiaries 12,809 20,485 253,816 Net cash used in investing activities (66,420) (373,616) (91,105) Financing activities: Proceeds from (repayment of) short-term borrowings — 30,000 (80,000) Proceeds long-term borrowings 50,000 — — Funding of loans from a subsidiary — — 280,000 Net proceeds from issuance of common shares — — 148,510 Proceeds from changes in ownership interests in subsidiaries without change of control — 224,553 — Net proceeds from issuance of convertible notes — 222,826 — Payments for repurchase of convertible notes (127,500) — — Payments for repurchase of common shares (11,845) (5,963) — Proceeds from exercise of stock options 875 1,035 — Net cash provided by (used in) financing activities (88,470) 472,451 348,510 Effect of exchange rate changes 11,110 (43,246) (797) Net increase (decrease) in cash, cash equivalents and restricted cash (6,784) 32,712 (7,593) Cash, cash equivalents and restricted cash at the beginning of the year 9,097 2,313 35,025 Cash, cash equivalents and restricted cash at the end of the year 2,313 35,025 27,432 Supplemental disclosure of cash flow information: Interest paid (net of amounts capitalized) 4,644 7,966 20,272 |
Appendix 1 - Major Subsidiaries
Appendix 1 - Major Subsidiaries of CSI | 12 Months Ended |
Dec. 31, 2021 | |
Appendix 1 - Major Subsidiaries of CSI | |
APPENDIX 1 - Major Subsidiaries of CSI | Appendix 1 Significant Subsidiaries of CSI The following table sets forth information concerning CSI’s significant subsidiaries: Place and Attributable Date Equity Subsidiary of Incorporation Interest Held Principal Activity Canadian Solar Solutions Inc. Canada 100 % Development of solar power project and manufacturing of solar modules June 22, 2009 Canadian Solar O and M (Ontario) Inc. Canada 100 % Solar farm operating and maintenance services May 10, 2011 Recurrent Energy, LLC USA 100 % Development of solar and battery storage project June 9, 2006 Canadian Solar UK Projects Ltd. United Kingdom 100 % Development of solar power projects August 29, 2014 Canadian Solar Projects K.K. Japan 100 % Development of solar power projects May 20, 2014 Canadian Solar New Energy Holding Company Limited Hong Kong 100 % Project investment, financing, trading of solar modules March 20, 2019 Canadian Solar Netherlands Cooperative U.A. Netherlands 100 % Project holding and financing November 8, 2016 Canadian Solar Energy Singapore Pte. Ltd. Singapore 100 % Development & ownership of solar power projects October 29, 2015 Canadian Solar Energy Holding Singapore Pte. Ltd. Singapore 100 % Development & ownership of solar power projects April 22, 2019 Canadian Solar Brasil I Fundo De Investimento Em Participacoes Brazil 100 % Investment holding and assets management August 5, 2020 Canadian Solar Construction (Australia) Pty Ltd Australia 100 % Engineering, procurement and construction (EPC) services July 4, 2017 Canadian Solar Investment Management Pty Ltd Australia 100 % Development of solar power projects February 24, 2020 FieldFare Argentina S.R.L. Argentina 100 % Electricity sales December 27, 2017 CSI Energy Project Technology (SuZhou) Co., Ltd. PRC 100 % Development of solar power projects November 19, 2020 CSI Solar Co., Ltd. PRC 79.59 % Investment holding and trading July 7, 2009 CSI New Energy Holding Co., Ltd. PRC 100 %* Investment holding January 7, 2005 Canadian Solar Manufacturing (Luoyang) Inc. PRC 100 %* Manufacture of solar modules and wafers February 24, 2006 Canadian Solar Manufacturing (Changshu) Inc. PRC 100 %* Production of solar modules August 1, 2006 CSI Cells Co., Ltd. PRC 100 %* Production of solar cells August 23, 2006 Suzhou Sanysolar Materials Technology Co., Ltd. PRC 100 %* Production of solar module materials August 17, 2011 CSI Solar Manufacturing (Funing) Co., Ltd. PRC 100 %* Manufacturing and sales of solar wafers and cells May 29, 2014 Changshu Tegu New Material Technology Co., Ltd. PRC 100 %* Research and development, production and sales of EVA solar packaging film September 2, 2014 Changshu Tlian Co., Ltd. PRC 100 %* Junction box and connector research, development, production and sales December 26, 2014 Canadian Solar Sunenergy (Baotou) Co., Ltd. PRC 100 %* Production of solar ingots August 18, 2016 CSI New Energy Development (Suzhou) Co., Ltd. PRC 90 %* Design, engineering construction and management of solar power projects December 17, 2009 CSI Electricity Sales (JiangSu) Co., Ltd. PRC 100 %* Electricity sales January 18, 2018 CSI Modules (DaFeng) Co., Ltd. PRC 57.4197 %* ** Production of solar modules May 16, 2017 CSI Cells (Yancheng) Co., Ltd. PRC 73.2063 %* *** Production of solar cells May 18, 2017 CSI NewEnergy (ZheJiang) Co., Ltd. PRC 100 %* Investment holding October 17, 2017 Canadian Solar Sunenergy (Jiaxing) Co. Ltd. (formerly known as CSI Modules (Jiaxing) Co., Ltd.) PRC 100 %* Production of solar modules November 3, 2017 Canadian Solar Photovoltaic Technology (Luoyang) Co., Ltd. PRC 100 %* Production of solar cells and wafers November 27, 2017 Canadian Solar Manufacturing (Thailand) Co., Ltd. Thailand 99.999996 %* Production of solar cells and modules November 20, 2015 Canadian Solar Manufacturing Vietnam Co., Ltd. Vietnam 100 %* Production of solar modules June 25, 2015 Canadian Solar (USA) Inc. USA 100 %* Sales and marketing of modules June 8, 2007 Canadian Solar EMEA GmbH Germany 100 %* Sales and marketing of modules September 2, 2009 Canadian Solar Japan K.K. Japan 100 %* Sales and marketing of modules June 11, 2009 Canadian Solar International Limited Hong Kong 100 %* Sales and marketing of modules March 25, 2011 Canadian Solar South East Asia Pte. Ltd. Singapore 100 %* Sales and marketing of modules September 29, 2011 Canadian Solar Brazil Commerce, Import and Export of Solar Panels Ltd. Brazil 100 %* Sales and marketing of solar modules, and solar energy solutions November 14, 2012 Canadian Solar SSES (US) Ltd USA 100 %* Turnkey battery storage technology solutions January 14, 2020 Canadian Solar SSES (UK) Ltd United Kingdom 100 %* Intellectual property holding December 18, 2019 * ** *** |
SUMMARY OF PRINCIPAL ACCOUNTI_2
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (b) Basis of consolidation (Continued) 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. 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 may differ from those estimates under different assumptions or conditions. Significant accounting estimates reflected in the Company’s consolidated financial statements include revenue recognition (including determination of the allocation of the transaction price, determination of deconsolidation of the project companies, estimates of budget cost and estimates of variable consideration), allowance for credit losses on accounts receivable, other receivables 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”) associated with long-lived assets, 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 foreign exchange option and forward contracts 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. |
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 battery storage solutions and EPC 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 credit losses | (f) Allowance for credit losses Before 2020, the Company determined its allowance for doubtful accounts by actively monitoring the financial condition of its customers to determine the potential for any nonpayment of accounts receivable trade, advances to suppliers and other receivables. In determining its allowance for doubtful accounts, the Company also considered other economic factors, such as aging trends. The Company believed that its process of specific review of customers, combined with overall analytical review, provided an effective evaluation of ultimate collectability of trade receivables. Provisions for allowance for doubtful accounts were recorded as general and administrative expenses in the consolidated statements of operations. After the adoption of ASU 2016-13 “Financial Instruments—Credit Losses (Topic 326)” beginning on January 1, 2020, the financial instruments are presented net of an allowance for credit losses. The Company establishes current expected credit losses (“CECL”) through an assessment based on external credit rating, internal credit rating and historical loss rates of debtors. Where CECL is measured on a collective basis or cater for cases where evidence at the individual instrument level may not yet be available, the financial instruments are grouped on the aging status; and nature, size and industry of debtors. The Company began purchasing credit insurance from insurers, such as the China Export & Credit Insurance Corporation, 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 credit insurance. At the time the claim is made, the Company records a receivable from these insurers equal to the expected recovery up to the amount of the specific allowance. The Company had recorded a receivable from these insurers in prepaid expenses and other current assets of $386 and $1,409 as of December 31, 2020 and 2021, 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. |
Project assets | (i) Project assets Project assets consist primarily of capitalized costs relating to solar and battery storage projects in various stages of development prior to the intended sale of the solar and battery storage projects to a third party customer. These costs include certain acquisition costs, land costs and costs for developing and constructing a solar and battery storage 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 and battery storage projects are preliminarily classified as project assets unless the Company has intention not to sell them to third parties. In that case, these projects that the Company intends to hold and operate to generate electricity are classified as solar power systems on the consolidated balance sheets. As of December 31, 2020 and 2021, no battery storage power system were recorded on the consolidated balance sheets. During the development phase, solar and battery storage 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 and battery storage 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 and battery storage 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 and battery storage projects is assessed based on the circumstances on each balance sheet date. Solar and battery storage projects that the Company intends to sell within one year, which meet the criteria of ASC 360, are classified as project assets-current. 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, permitting, capital cost, 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 project asset 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 Company does not depreciate the project assets. Any revenue generated from a solar and battery storage 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 intends to operate the project assets for the purpose of generating income from the sale of electricity, the project assets will be reclassified to solar and battery storage 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 non cash 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 5-10 years 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 comprised of ground-mounted utility-scale projects 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 power purchase agreements (“PPA”) and performance based energy incentives, 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 to 25 years. The Company reviews the estimated useful lives of its fixed assets on an ongoing basis. This review indicated that the actual lives of certain solar power systems were longer than the estimated useful lives used for depreciation purposes in the Company’s financial statements. As a result, effective January 1, 2022, the Company changed the estimates of its useful lives of its solar power systems from 20-25 years to 30 years, based on internal studies and market analysis that support a 30-year useful life as appropriate given advances in solar power technology. The useful life was not changed for projects to be transferred to an offtaker at the end of a PPA that is less than 30 years in duration. The change is being accounted for prospectively as a change in accounting estimate. Depreciation expense for the year ended December 31, 2021 would have been lowered by $2,186 if the change had been made at the beginning of 2021. |
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 1-10 years |
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”). Amounts are charged to earnings ratably over the lease periods of 20 to 50 years. |
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 is considered as return on investment, and the rest of the amount is considered as return of 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, 2019, 2020 and 2021, the Company recorded nil, $24,060 and nil of 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 $21,866, $11,854 and $6,084 for the years ended December 31, 2019, 2020 and 2021, 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 long-lived 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 was not material as of December 31, 2020 and 2021. |
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. 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 sheets. 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 operations. |
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. |
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 charges to customers for shipping and handling activities. 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. 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. 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. Battery storage solutions and EPC services The Company recognizes revenue for the sales of battery storage solutions (system integration business, delivering turnkey battery storage technology solutions) and EPC services over time based on the estimated progress to completion using a cost-based input method. This includes the advances that battery storage customers are required to make on the value of their battery storage solution that is treated as deferred revenue on the Company’s consolidated balance sheet and then recognized as revenue over time based on the estimated progress to completion. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (w) Revenue recognition (Continued) In applying the cost-based input method of revenue recognition, the Company uses the actual costs incurred relative to the total anticipated costs to determine its progress towards contract completion and to calculate the corresponding amount of revenue to recognize. The Company is also required to make estimates of revenues and costs to complete its projects. In making such estimates, significant judgment is required to evaluate the underlying assumptions, including the impact of any performance incentives, liquidated damages, and other payments to customers. 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 using the cost-based input method of revenue recognition are recorded in the period in which the revisions are identified. Solar and battery storage projects Sales of solar power projects and battery storage power projects (project development business, including sourcing land, interconnection, structuring power purchase agreements and other permits and requirements for battery storage projects) are recognized at a point in time when customers obtain control of solar and battery storage projects. For sales of solar and battery storage 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 it obtained, and defer any profit associated with the interest obtained. The solar and battery storage projects are often held in separate legal entities which are formed for the special purpose of constructing the solar and battery storage projects, which the Company refers to as “project companies”. The Company applies guidance under ASC 810 to determine deconsolidation of the project companies upon transfer of equity interest to the customers, and then applies guidance under ASC 606 to identify performance obligations, and to estimate the variable consideration, if any, as part of the transaction price for revenue recognition. O&M and asset management services O&M and asset management 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 and asset management services are recognized over time based on the work completed to date which does not require re-performances and the costs of O&M and asset management services are expensed when incurred. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (w) Revenue recognition (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 attached conditions have been met and there is reasonable assurance that the incentives will be received. During the years ended December 31, 2019, 2020 and 2021, the Company recognized performance-based energy incentives related to electricity generated of $3,915, $6,628 and $9,402, respectively, in revenue. The Company’s electricity revenue during the years ended December 31, 2019, 2020 and 2021 were as follows: Years Ended December 31, 2019 2020 2021 $ $ $ Electricity Revenue: CSI Solar Segment 5,866 9,077 15,302 Global Energy Segment — 629 14,118 5,866 9,706 29,420 Disaggregation of Revenue The disaggregation of revenue from contracts with customers for the years ended December 31, 2019, 2020, and 2021 has been disclosed under Segment Information. See 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 (Comparative period financial information for 2019 by reportable segment has been recast to conform to current presentation. Refer to Note 22 for further information.): Years Ended December 31, 2019 2020 2021 CSI Solar Segment: Revenue recognized at a point in time $ 2,210,459 $ 2,704,332 $ 3,881,573 Revenue recognized over time 271,389 45,996 271,513 Global Energy Segment: Revenue recognized at a point in time 696,326 687,759 1,068,179 Revenue recognized over time 22,409 38,408 55,904 3,200,583 3,476,495 5,277,169 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (w) Revenue recognition (Continued) The Company’s contract assets and liabilities are as follow: At December 31, At December 31, 2020 2021 Contract Assets Accounts receivable, unbilled $ 28,461 $ 37,244 Contract Liabilities Advances from customers 189,470 135,512 Other current liabilities 35,012 98,494 224,482 234,006 For the year ended December 31, 2021, $199,140 of the Company’s revenue was recognized from the beginning balance of contract liabilities as of January 1, 2021. Contract liabilities of $234,006 as of December 31, 2021 are expected to be realized within one year. The Company has applied the practical expedients related to the revenue 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 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 | (x) Shipping and handling Payments received from customers for shipping and handling activities are included in net revenues. Shipping and handling costs relating to sales of $88,079, $134,248 and $316,358, are included in selling and distribution expenses for the years ended December 31, 2019, 2020 and 2021, respectively. |
Research and development | (y) Research and development Costs related to the design, development, testing and enhancement of products are included in research and development expenses. Research and development costs are expensed when incurred and amounted to $47,045, $45,167 and $58,407 for the years ended December 31, 2019, 2020 and 2021, 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, government grants received and insurance claims on weather-related project damages. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (z) Other operating income, net (Continued) Government grants primarily consist of unrestricted and restricted grants and subsidies. Unrestricted grants received that allowed the Company’s full discretion in utilizing the funds are recognized as other operating income when it is probable that all the conditions stipulated by the local governments, generally for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments, have been satisfied. Restricted grants received that are 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, 2019 2020 2021 $ $ $ Government grants (10,097) (24,245) (38,468) Net gain on disposal of solar power system (1,666) — (10,091) Net (gain) loss on disposal of property, plant and equipment 1,227 (253) 83 (Insurance claims on) weather-related project damages — (1,025) 1,408 (10,536) (25,523) (47,068) |
Warranty cost | (aa) Warranty cost Before 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 2009, the Company increased its guarantee for defects in materials and workmanship to six years. In 2011, the Company increased its guarantee for defects in materials and workmanship to ten years. In 2019, the Company increased its guarantee for defects in materials and workmanship up to 12 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 provided warranty against decline in performance for its bifacial module and double glass module products for a period of 30 years. For solar 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 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 a portion of its warranties. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (aa) Warranty cost (Continued) 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 a portion of its warranties. 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 periods. The unamortized carrying amount is $1,728 and $528 as of December 31, 2020 and 2021, respectively and was included as a component of prepaid expenses and other current assets. 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. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (aa) Warranty cost (Continued) 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 or 30 years and is treated as a non-current asset consistent with the underlying warranty obligation. When a specific claim is submitted, and the corresponding insurance proceeds are expected to be collected within twelve months of the balance sheet date, the Company will reclassify that portion of the receivable as being current. The insurance receivable amounts were $82,532 and $87,729 as of December 31, 2020 and 2021, respectively, and were included as a component of other non-current assets. The Company made upward adjustments to its accrued warranty costs of $2,622 and other non-current assets of $2,153 for the year ended December 31, 2021, to reflect the recent increase in average selling price of solar modules as well as the volume increase in solar modules shipment, which are two primary inputs into the estimated warranty costs. Accrued warranty costs (net effect of adjustments) of $28,044, $26,931 and $45,053 are included in cost of revenues for the years ended December 31, 2019, 2020 and 2021, respectively. |
Foreign currency translation | (ab) Foreign currency translation The United States dollars (“U.S. dollars” or “$”), 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, Brazilian reals (“BRL”) and Australian dollars, 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 2019, 2020 and 2021 were denominated in U.S. dollars, Renminbi and Euros, with the remainder in other currencies such as Japanese Yen, Brazilian reals, Australian dollars, South African rand and 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, such as PV glass and aluminum, 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, Japanese yen, Australian dollars and Euros. 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, Canadian dollars, Japanese yen, Euros, Brazilian reals, South African rand and Thai baht, may result in foreign exchange gains or losses. Since 2008, the Company has hedged part of its foreign currency exposures primarily against the U.S. dollars using foreign currency forward or option contracts. |
Concentration of credit risk | (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 credit losses 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, 2020 and 2021, gross prepayments made to individual suppliers in excess of 10% of total advances to suppliers are as follows: As of December 31, 2020 2021 $ $ Supplier A 43,821 52,257 Supplier B — (1) 37,117 Supplier C — (1) 36,026 (1) Not in excess of 10% of total advances to suppliers as of December 31, 2020. |
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 | (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 per share | (ah) Earnings per share Basic earnings per common share is computed by dividing income attributable to holders of common shares by the weighted average number of common shares outstanding during the year. Diluted earnings 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”) with a time-based vesting condition, 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. The share-based compensation expense related to the award which contains both time-based and performance-based vesting condition will be recognized when it is probable that the performance-based condition will be met. The probability of the performance condition to be met is not reflected when determining the fair value of the award. |
Risks and uncertainties related to the COVID-19 pandemic | (aj) Risks and uncertainties related to the COVID-19 pandemic The COVID-19 pandemic has continued to pose significant challenges to many aspects of the Company’s business, including its operations, customers, suppliers and projects. The extent to which the COVID-19 has and may persist to impact the Company’s ability to effectively operate continues to be highly uncertain. The outbreak continues to evolve, and the impact that COVID-19, or new variants of COVID-19, will ultimately have on the Company’s result of operations, financial condition, liquidity and cash flows cannot be estimated and is impossible to predict. The Company will continue to monitor and adhere to the policies, lockdowns, restrictions, and preventive measures implemented by the various government authorities, as well as general movement restrictions, social distancing and other measures imposed to slow the spread of COVID-19. As of the date of issuance of these consolidated financial statements, the Company is not aware of any specific event or circumstance that would require updates to its estimates and judgments or revisions due to COVID-19 to the carrying value of its assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the consolidated financial statements as soon as they become known. |
Recently issued accounting pronouncements | (ak) Recently issued accounting pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”, 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. This ASU 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 adopted this standard effective January 1, 2021. The adoption of this new standard did not have a material impact on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848)”, to provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The new guidance is effective, at the Company’s election, beginning March 12, 2020 through December 31, 2022. In addition, in January 2021 the FASB issued ASU No. 2021-01, “Reference Rate Reform — Scope,” which clarified the scope of ASC 848 relating to contract modifications. With the planned discontinuation of LIBOR as a benchmark in June 2023 the Company has evaluated alternatives for its debt that utilizes LIBOR as a reference rate. The company has $956,523 of LIBOR debt as of December 31, 2021 and projects the balance will be approximately $530,662 by the June 2023 discontinuance date. All of the Company’s LIBOR debt agreements contemplate a change to the Secured Overnight Financing Rate (SOFR) as the reference rate upon discontinuance of LIBOR, with no exposure to the Company. 2. SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Continued) (ak) Recently issued accounting pronouncements (Continued) In August, 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU 2020-06), which simplifies the accounting for convertible instruments by reducing the number of accounting models available for convertible debt instruments. This guidance also eliminates the treasury stock method to calculate diluted earnings per share for convertible instruments and requires the use of the if-converted method. The new standard was effective for the Company beginning January 1, 2022. The adoption of this new standard is not expected to have a material impact on the Company’s consolidated financial statements. In November 2021, the FASB issued ASU 2021-10, “Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance”, to increase the transparency of government assistance received by most business entities by requiring the disclosure of: (1) the types of government assistance received; (2) the accounting for such assistance; and (3) the effect of the assistance on a business entity’s financial statements. The new standard was effective for the Company beginning January 1, 2022. The Company is currently evaluating the impact of adopting this guidance and the potential effects it could have on the Company’s consolidated financial statements. |
SUMMARY OF PRINCIPAL ACCOUNTI_3
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 5-10 years Furniture, fixtures and equipment 5 years Motor vehicles 5 years |
Schedule of useful life intangible assets | Technical know-how 10 years Computer software 1-10 years |
Schedule of company's electricity revenue | Years Ended December 31, 2019 2020 2021 $ $ $ Electricity Revenue: CSI Solar Segment 5,866 9,077 15,302 Global Energy Segment — 629 14,118 5,866 9,706 29,420 |
Schedule of disaggregation of revenue | The following table represents a disaggregation of revenue recognized at a point in time or over time (Comparative period financial information for 2019 by reportable segment has been recast to conform to current presentation. Refer to Note 22 for further information.): Years Ended December 31, 2019 2020 2021 CSI Solar Segment: Revenue recognized at a point in time $ 2,210,459 $ 2,704,332 $ 3,881,573 Revenue recognized over time 271,389 45,996 271,513 Global Energy Segment: Revenue recognized at a point in time 696,326 687,759 1,068,179 Revenue recognized over time 22,409 38,408 55,904 3,200,583 3,476,495 5,277,169 |
Schedule of contract assets and contract liabilities | At December 31, At December 31, 2020 2021 Contract Assets Accounts receivable, unbilled $ 28,461 $ 37,244 Contract Liabilities Advances from customers 189,470 135,512 Other current liabilities 35,012 98,494 224,482 234,006 |
Summary of the Company's other operating income, net | Years Ended December 31, 2019 2020 2021 $ $ $ Government grants (10,097) (24,245) (38,468) Net gain on disposal of solar power system (1,666) — (10,091) Net (gain) loss on disposal of property, plant and equipment 1,227 (253) 83 (Insurance claims on) weather-related project damages — (1,025) 1,408 (10,536) (25,523) (47,068) |
Schedule of gross prepayments made to individual suppliers in excess of 10% of total advances to suppliers | As of December 31, 2020 2021 $ $ Supplier A 43,821 52,257 Supplier B — (1) 37,117 Supplier C — (1) 36,026 (1) Not in excess of 10% of total advances to suppliers as of December 31, 2020. |
ALLOWANCE FOR CREDIT LOSSES (Ta
ALLOWANCE FOR CREDIT LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of allowances for credit losses | Advances to Accounts Receivable Suppliers and Trade Other Receivable $ $ Balance as of December 31, 2018 32,733 30,630 Allowances made (reversed) during the year, net (1,386) 2,657 Accounts written-off against allowances (309) (1,452) Foreign exchange effect (1,493) (123) Balance as of December 31, 2019 29,545 31,712 Cumulative-effect adjustment for the adoption of ASU 2016-13 — — Provision for credit losses, net 9,785 1,647 Writeoffs (639) (5,490) Foreign exchange effect 1,602 633 Balance as of December 31, 2020 40,293 28,502 Provision for credit losses, net 7,171 444 Writeoffs (197) (53) Foreign exchange effect (141) 186 Balance as of December 31, 2021 47,126 29,079 |
Allowances for accounts receivable | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of allowances | At December 31, At December 31, 2020 2021 $ $ Accounts receivable trade, gross 449,251 698,498 Allowance for credit losses (40,293) (47,126) Accounts receivable trade, net 408,958 651,372 |
Allowances for advances to suppliers | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of allowances | At December 31, At December 31, 2020 2021 $ $ Advances to suppliers, gross 299,019 279,800 Allowance for credit losses (19,700) (19,682) Advances to suppliers, net 279,319 260,118 |
Allowances for other receivables | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of allowances | At December 31, At December 31, 2020 2021 $ $ Other receivable, gross 238,779 280,350 Allowance for credit losses (8,802) (9,397) Other receivable, net 229,977 270,953 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INVENTORIES | |
Schedule of inventories | At December 31, At December 31, 2020 2021 $ $ Raw materials 90,308 155,433 Work-in-process 69,132 117,509 Finished goods 536,541 919,432 695,981 1,192,374 |
PROJECT ASSETS (Tables)
PROJECT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PROJECT ASSETS | |
Schedule of project assets | At December 31, At December 31, 2020 2021 $ $ Project assets — Acquisition cost 44,549 70,651 Project assets — EPC and other cost 1,092,917 956,710 1,137,466 1,027,361 Current portion 747,764 594,107 Non-current portion 389,702 433,254 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |
Schedule of property, plant and equipment, net | At December 31, At December 31, 2020 2021 $ $ Buildings 533,647 724,940 Leasehold improvements 14,804 32,995 Machinery 1,191,780 1,477,638 Furniture, fixtures and equipment 75,656 86,616 Motor vehicles 7,643 9,833 Land 20,231 31,691 1,843,761 2,363,713 Accumulated depreciation (827,601) (1,019,988) Impairment (52,149) (42,828) Subtotal 964,011 1,300,897 Construction in process 193,720 100,980 Property, plant and equipment, net 1,157,731 1,401,877 |
SOLAR POWER SYSTEMS, NET (Table
SOLAR POWER SYSTEMS, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SOLAR POWER SYSTEMS, NET | |
Schedule of solar power systems, net | At December 31, At December 31, 2020 2021 $ $ Solar power systems in operation 182,232 117,339 Solar power systems under construction 6,565 4,684 Accumulated depreciation (30,535) (13,760) Solar power systems, net 158,262 108,263 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INTANGIBLE ASSETS, NET | |
Schedule of intangible assets | Gross Carrying Accumulated At December 31, 2021 Amount Amortization Net $ $ $ Technical know-how 1,577 (1,562) 15 Computer software 39,059 (20,082) 18,977 Total intangible assets, net 40,636 (21,644) 18,992 Gross Carrying Accumulated At December 31, 2020 Amount Amortization Net $ $ $ Technical know-how 1,543 (1,525) 18 Computer software 41,085 (18,674) 22,411 Total intangible assets, net 42,628 (20,199) 22,429 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE MEASUREMENT | |
Schedule of fair value of derivative instruments on the consolidated balance sheets | Fair Value of Derivative Assets At December 31, 2020 At December 31, 2021 Balance Sheet Location Fair Value Balance Sheet Location Fair Value $ $ Foreign exchange forward contracts Derivative assets — current 22,178 Derivative assets — current 7,124 Foreign exchange option contracts Derivative assets — current 1,173 Derivative assets — current 162 Interest rate swap Other non-current assets — Other non-current assets 76 Total 23,351 Total 7,362 Fair Value of Derivative Liabilities At December 31, 2020 At December 31, 2021 Balance Sheet Location Fair Value Balance Sheet Location Fair Value $ $ Foreign exchange forward contracts Derivative liabilities — current 10,753 Derivative liabilities — current 2,622 Foreign exchange option contracts Derivative liabilities — current 2 Derivative liabilities — current — Total 10,755 Total 2,622 |
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 2019 2020 2021 $ $ $ Foreign exchange forward contracts Gain (loss) on change in fair value of derivatives, net (20,249) 49,807 22,582 Foreign exchange option contracts Gain (loss) on change in fair value of derivatives, net (1,022) 1,376 220 Commodity hedge Gain (loss) on change in fair value of derivatives, net — — 983 Interest rate swap Gain (loss) on change in fair value of derivatives, net (947) (1,182) — Total (22,218) 50,001 23,785 |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2020 2021 $ $ Cash 42,064 48,200 Project assets 337,836 289,315 Other assets 79,580 53,091 Total assets 459,480 390,606 Short-term borrowings 180,773 113,857 Long-term borrowings 52,408 106,880 Other liabilities 60,845 36,872 Total liabilities 294,026 257,609 |
INVESTMENTS IN AFFILIATES (Tabl
INVESTMENTS IN AFFILIATES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INVESTMENTS IN AFFILIATES | |
Schedule of investments in affiliates | At December 31, 2020 2021 Carrying Ownership Carrying Ownership Value Percentage Value Percentage $ (%) $ (%) Canadian Solar Infrastructure Fund, Inc. 19,980 14.66 12,889 14.64 Suzhou Financial Leasing Co., Ltd. 23,969 4.78 27,026 4.78 RE Crimson Holdings LLC — — 18,854 20 JuSheng (Suzhou) Solar Tech Co., Ltd. — — 6,274 4.55 Others 34,342 15-49 33,776 20-49 Total 78,291 98,819 |
LEASE (Tables)
LEASE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
LEASE | |
Schedule of leases | Year ended Year ended December 31, 2020 December 31, 2021 $ $ Finance lease cost: Amortization of right-of-use assets 8,036 14,920 Interest on lease liabilities 1,497 1,349 Operating fixed lease cost 19,630 18,443 Short-term lease cost 850 1,884 Total lease cost 30,013 36,596 |
Schedule of other supplemental information: | Year ended Year ended December 31, 2020 December 31, 2021 $ $ Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from finance lease (1,497) (1,349) Operating cash outflows from operating lease (20,589) (19,972) Financing cash outflows from finance lease (19,163) (35,554) ROU assets obtained in exchange of new finance lease liabilities in non-cash transaction 10,666 60,102 ROU assets obtained in exchange of new operating lease liabilities in non-cash transaction 14,892 24,694 ROU assets disposed through early termination of operating leases in non-cash transaction (6,572) (1,880) At December 31, At December 31, 2020 2021 Weighted average of remaining operating lease term - finance leases (in years) 0.90 2.66 Weighted average of remaining operating lease term - operating leases (in years) 3.07 4.40 Weighted average of operating lease discount rate - finance lease 5.54 % 4.95 % Weighted average of operating lease discount rate - operating lease 4.18 % 4.34 % |
Schedule of lease maturities | As of December 31, 2021, maturities of operating and finance lease liabilities were as follows: Operating Lease Finance Lease Total Lease Payment Payment Payment $ $ $ Year Ending December 31: 2022 12,768 20,381 33,149 2023 7,941 17,052 24,993 2024 4,833 16,272 21,105 2025 1,880 — 1,880 2026 2,398 — 2,398 Thereafter 10,651 — 10,651 Total future minimum lease payments 40,471 53,705 94,176 Less: imputed interest 5,071 3,552 8,623 NPV for future minimum lease payments 35,400 50,153 85,553 Analysis as: Short-term 12,185 18,749 30,934 Long-term 23,215 31,404 54,619 Total lease liabilities 35,400 50,153 85,553 As of December 31, 2020, maturities of operating and finance lease liabilities were as follows: Operating Lease Finance Lease Total Lease Payment Payment Payment $ $ $ Year Ending December 31: 2021 14,374 22,706 37,080 2022 7,427 2,514 9,941 2023 3,632 — 3,632 2024 1,242 — 1,242 2025 369 — 369 Thereafter 1,859 — 1,859 Total future minimum lease payments 28,903 25,220 54,123 Less: imputed interest 467 963 1,430 NPV for future minimum lease payments 28,436 24,257 52,693 Analysis as: Short-term 15,204 21,887 37,091 Long-term 13,232 2,370 15,602 Total lease liabilities 28,436 24,257 52,693 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
BORROWINGS | |
Schedule of bank borrowings | At December 31, At December 31, 2020 2021 $ $ Short-term borrowings 912,549 1,092,329 Long-term borrowings, current portion 289,736 178,886 Long-term borrowings on project assets — current (1) 198,794 321,655 Subtotal for short-term borrowings 1,401,079 1,592,870 Long-term borrowings 446,090 523,634 Total 1,847,169 2,116,504 (1) Certain long-term borrowings were classified as current liabilities because these borrowings are associated with certain solar and battery storage projects that are expected to be sold within one year. |
Schedule of future principal repayments on the long-term borrowings | 2022 $ 500,541 2023 336,504 2024 160,043 2025 6,822 2026 4,783 Thereafter 15,482 Total 1,024,175 Less: future principal repayment related to long-term borrowings, current portion (500,541) Total long-term portion $ 523,634 |
Schedule of average effective interest rates on borrowings | At December 31, At December 31, 2020 2021 Short-term borrowings 3.26 % 3.03 % Long-term borrowings on project assets – current 3.63 % 3.04 % Long-term borrowings 4.37 % 3.46 % |
Schedule of interest incurred | Years Ended December 31, 2019 2020 2021 $ $ $ Interest capitalized — project assets 10,794 10,197 17,316 Interest capitalized — property, plant and equipment 2,620 154 — Interest expense 81,326 71,874 58,153 Total interest incurred 94,740 82,225 75,469 |
ACCRUED WARRANTY COSTS (Tables)
ACCRUED WARRANTY COSTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ACCRUED WARRANTY COSTS | |
Summary of the Company's warranty activity | Years Ended December 31, 2019 2020 2021 $ $ $ Beginning balance 50,605 55,878 37,732 Warranty provision 28,044 26,931 45,053 Warranty costs incurred (23,282) (46,067) (35,432) Foreign exchange effect 511 990 (2,207) Ending balance 55,878 37,732 45,146 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAXES | |
Schedule of provision for income taxes | Years Ended December 31, 2019 2020 2021 $ $ $ Income (loss) before income taxes Canada (61,880) (31,896) 5,922 United States 8,319 (113,262) 66,431 PRC including Hong Kong and Taiwan 204,632 189,398 (32,716) Japan 29,335 50,642 54,770 Other 28,215 50,381 51,313 208,621 145,263 145,720 Current tax expense (benefit) Canada (3,420) 36,226 (1,124) United States (4,803) (71,421) 15,937 PRC including Hong Kong and Taiwan 44,622 30,276 47,356 Japan 13,229 18,941 24,047 Other 7,057 8,233 16,865 56,685 22,255 103,081 Deferred tax expense (benefit) Canada (6,558) (10,792) 685 United States (2,412) 23,173 (1,604) PRC including Hong Kong and Taiwan (5,333) (17,998) (65,017) Japan (2,953) (10,571) (353) Other 2,637 (8,050) (948) (14,619) (24,238) (67,237) Total income tax expense (benefit) Canada (9,978) 25,434 (439) United States (7,215) (48,248) 14,333 PRC including Hong Kong and Taiwan 39,289 12,278 (17,661) Japan 10,276 8,370 23,694 Other 9,694 183 15,917 42,066 (1,983) 35,844 |
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, 2019 2020 2021 Combined federal and provincial income tax rate 27 % 27 % 27 % Effect of permanent difference (1) % 4 % 3 % Effect of different tax rate on earnings in other jurisdictions 3 % (6) % 9 % Effect of tax holiday (4) % (1) % (3) % Effect of true-up (3) % (13) % 4 % Unrecognized tax provision — % — % (5) % Change in valuation allowance (3) % (14) % (3) % Effect of change in tax rate (1) % 2 % (7) % Others 2 % — % — % 20 % (1) % 25 % |
Schedule of aggregate amount and per share effect of the tax holiday | Years Ended December 31, 2019 2020 2021 (In Thousands of U.S. Dollars, except per share data) The aggregate amount 7,956 1,287 4,466 Per share — basic 0.13 0.02 0.07 Per share — diluted 0.13 0.02 0.07 |
Schedule of components of the deferred tax assets and liabilities | At December 31, At December 31, 2020 2021 $ $ Deferred tax assets: Accrued warranty costs 8,699 14,942 Bad debt allowance 3,218 12,175 Inventory write-down 3,121 1,404 Future deductible expenses 24,454 24,910 Depreciation and impairment difference of property, plant and equipment and solar power systems 30,138 24,561 Accrued liabilities related to antidumping, countervailing and other duty costs and true-up charges 406 39 Government subsidies 16,461 39,470 Net operating losses carry-forward 85,850 110,012 Unrealized foreign exchange loss and capital loss 1,221 491 Interest limitation 1,956 10,800 Others 30,958 47,690 Total deferred tax assets, gross 206,482 286,494 Valuation allowance (50,118) (45,682) Total deferred tax assets, net of valuation allowance 156,364 240,812 Deferred tax liabilities: Derivative assets 996 2,153 Depreciation difference of property, plant and equipment 17,027 27,776 Insurance recoverable 785 32 Unrealized foreign exchange gain 10,746 3,452 Others 5,234 19,046 Total deferred tax liabilities 34,788 52,459 Net deferred tax assets 121,576 188,353 Analysis as: Deferred tax assets 170,656 236,503 Deferred tax liabilities (49,080) (48,150) Net deferred tax assets 121,576 188,353 |
Schedule of movement of the valuation allowance | Years Ended December 31, 2019 2020 2021 $ $ $ Beginning balance 76,522 70,627 50,118 Additions (reversals) (6,156) (21,585) (4,671) Foreign exchange effect 261 1,076 235 Ending balance 70,627 50,118 45,682 |
Schedule of movement and balance of the Company's liability for uncertain tax positions (excluding interest and penalties) | Years Ended December 31, 2019 2020 2021 $ $ $ Beginning balance 15,730 10,557 9,628 Addition for tax positions related to the current year 11 — — Reductions for tax positions from prior years/Statute of limitations expirations (5,720) (1,011) (3,763) Foreign exchange effect 536 82 (2) Ending balance 10,557 9,628 5,863 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
EARNINGS PER SHARE | |
Schedule of computation of basic and diluted earnings per share | Years Ended December 31, 2019 2020 2021 (In Thousands of U.S. Dollars, except share and per share data) Numerator: Net income attributable to Canadian Solar Inc. — basic $ 171,585 $ 146,703 $ 95,248 Dilutive effect of convertible notes 975 1,518 5,300 Net income attributable to Canadian Solar Inc. — diluted $ 172,560 $ 148,221 $ 100,548 Denominator: Denominator for basic calculation — weighted average number of common shares — basic 59,633,855 59,575,898 61,614,391 Diluted effects of share number from share options and RSUs 794,526 897,258 985,554 Dilutive effects of share number from convertible notes 349,315 1,833,663 6,272,157 Denominator for diluted calculation — weighted average number of common shares — diluted 60,777,696 62,306,819 68,872,102 Basic earnings per share $ 2.88 $ 2.46 $ 1.55 Diluted earnings per share $ 2.83 $ 2.38 $ 1.46 |
Schedule of anti-dilutive shares excluded from the computation of diluted earnings per share | Years Ended December 31, 2019 2020 2021 Share options and RSUs 41,950 187,083 3,877 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment | |
Schedule of payment for commitments | Year Ending December 31: $ 2022 67,448 2023 49,475 2024 50,948 Total 167,871 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SEGMENT INFORMATION | |
Summary of Company's revenues and gross profit and income from operations generated from each segment | Years Ended December 31, 2021 Elimination and unallocated CSI Solar Global Energy items (1) Total $ $ $ $ Net revenues 4,371,603 1,124,083 (218,517) 5,277,169 Cost of revenues 3,689,126 930,099 (251,368) 4,367,857 Gross profit 682,477 193,984 32,851 909,312 Income from operations (2) 74,132 97,179 19,070 190,381 22. SEGMENT INFORMATION (Continued) Years Ended December 31, 2020 Elimination and unallocated CSI Solar Global Energy items (1) Total $ $ $ $ Net revenues 3,105,044 726,167 (354,716) 3,476,495 Cost of revenues 2,496,153 577,052 (286,624) 2,786,581 Gross profit 608,891 149,115 (68,092) 689,914 Income from operations (2) 253,105 53,414 (86,089) 220,430 Years Ended December 31, 2019 Elimination and unallocated CSI Solar Global Energy items (1) Total $ $ $ $ Net revenues 2,591,154 718,735 (109,306) 3,200,583 Cost of revenues 1,977,502 604,856 (100,272) 2,482,086 Gross profit 613,652 113,879 (9,034) 718,497 Income from operations (2) 267,642 18,795 (27,558) 258,879 (1) Includes inter-segment elimination, and unallocated corporate costs not considered part of management’s evaluation of reportable segment operating performance. (2) Income from operations reflects management’s allocation and estimate as some services are shared by the Company’s two reportable segments. |
Summary of the Company's net revenues generated from different geographic locations | Years Ended December 31, 2019 2020 2021 $ $ $ The Americas: —United States 852,231 696,101 1,590,573 —Brazil 395,303 284,478 442,603 —Mexico 94,446 118,846 139,611 —Canada 30,330 100,284 30,792 —Others 29,731 21,396 76,015 1,402,041 1,221,105 2,279,594 Asia: —PRC 317,077 504,656 1,207,003 —Japan 372,687 560,701 509,233 —India 70,893 61,141 142,300 —Thailand 12,753 6,108 59,451 —Cyprus 2,175 13,265 51,038 —Pakistan 10,581 15,417 48,838 —Vietnam 39,268 289,621 19,956 —United Arab Emirates 43,311 53,981 6,168 —Korea 72,552 25,896 3,413 —Others 76,786 90,054 91,670 1,018,083 1,620,840 2,139,070 Europe and other regions: —Germany 109,119 119,035 231,995 —Australia 313,167 120,403 165,772 —Netherlands 68,770 96,372 104,715 —Spain 78,228 138,972 100,658 —South Africa 93,911 49,375 90,761 —Czech 17,717 16,144 34,604 —France 13,516 29,974 25,980 —United Kingdom 33,158 8,842 7,749 —Others 52,873 55,433 96,271 780,459 634,550 858,505 Total net revenues 3,200,583 3,476,495 5,277,169 |
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, 2020 2021 $ $ PRC 1,002,409 1,230,613 Thailand 295,240 266,870 Japan 204,515 191,680 Argentina 64,208 68,508 Mexico 12,388 68,331 United States 64,009 65,700 Brazil 16,109 63,716 Australia 76,330 15,024 Canada 8,898 7,050 Others 46,432 55,905 Total long-lived assets 1,790,538 2,033,397 |
Summary of the Company's revenues generated from each product or service | Years Ended December 31, 2019 2020 2021 $ $ $ CSI Solar: Solar modules 2,012,059 2,348,724 3,328,301 Solar system kits 116,449 157,656 302,133 Battery storage solutions — 7,899 222,655 China energy/EPC (includes electricity sales) 58,096 175,388 178,830 Others 295,244 60,661 121,167 Global Energy: Solar and battery storage projects 652,050 654,827 1,064,178 O&M and asset management services 19,750 26,386 35,334 Others (includes electricity sales) 46,935 44,954 24,571 Total net revenues 3,200,583 3,476,495 5,277,169 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SHARE-BASED COMPENSATION | |
Schedule of the RSU activity | Weighted Average Number of Grant-Date Shares Fair Value (in whole US dollars) Unvested at January 1, 2021 1,888,753 19.78 Granted 2,161,098 26.10 Vested (562,376) 17.11 Forfeited (152,172) 22.04 Unvested at December 31, 2021 3,335,303 24.23 |
ORGANIZATION AND PRINCIPAL AC_2
ORGANIZATION AND PRINCIPAL ACTIVITIES (Narrative) (Details) $ in Thousands, ¥ in Millions | 1 Months Ended | 12 Months Ended | 36 Months Ended | ||||
Sep. 30, 2020 USD ($) | Sep. 30, 2020 CNY (¥) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 CNY (¥) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2021 USD ($) | |
Proceeds from share purchases of third-party investors | $ 224,553 | $ 224,553 | $ 224,553 | ||||
Capital raised | 224,553 | ||||||
Proceeds from Noncontrolling Interests | 10,003 | 261,332 | $ 11,488 | ||||
Compensation cost | $ 0 | 0 | 0 | ||||
Percentage of discount on Issue of Shares | 30% | 30% | |||||
Premium (Discount) on Issue of Shares | $ 768,000 | ¥ 5,250 | |||||
Other Payables [Member] | |||||||
Subscription advances | 36,342 | $ 36,342 | $ 36,342 | ||||
Canadian Solar Employees | |||||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 4,500 | 31 | |||||
Canadian Solar | |||||||
Ownership Percentage by Noncontrolling Owners | 20.40% | 20.40% | 20.40% | ||||
Canadian Solar | Third-Party Investors | |||||||
Stock Issued During Period, Value, Employee Stock Ownership Plan | $ 36,342 | 248 | |||||
CSI Solar Co | |||||||
Business Combination, Consideration Transferred | 219,000 | 1,500 | |||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 1,100,000 | ¥ 7,500 | |||||
Proceeds from Noncontrolling Interests | $ 261,332 | ¥ 1,780 |
SUMMARY OF PRINCIPAL ACCOUNTI_4
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Allowance for doubtful receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Prepaid expenses and other current assets | ||
Principal accounting policies: | ||
Allowance for credit losses | $ 1,409 | $ 386 |
SUMMARY OF PRINCIPAL ACCOUNTI_5
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Property, plant and equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 01, 2022 | Dec. 31, 2021 | |
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 | Depreciation life | ||
Property, plant and equipment | ||
Estimated useful lives | 30 years | |
Maximum useful life of transferred to an offtaker | 30 years | |
Increase or decrease in depreciation expenses | $ 2,186 | |
Solar power systems | Minimum | ||
Property, plant and equipment | ||
Estimated useful lives | 20 years | |
Solar power systems | Minimum | Depreciation life | ||
Property, plant and equipment | ||
Estimated useful lives | 20 years | |
Solar power systems | Maximum | ||
Property, plant and equipment | ||
Estimated useful lives | 25 years | |
Solar power systems | Maximum | Depreciation life | ||
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, 2021 | |
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 ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES | |||
Impairment charges on investments | $ 0 | $ 24,060,000 | $ 0 |
Impairment charges for property, plant and equipment | $ 6,084,000 | $ 11,854,000 | $ 21,866,000 |
SUMMARY OF PRINCIPAL ACCOUNTI_8
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Revenue recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Electricity | |||
Revenue recognition: | |||
Amount of performance based energy incentives | $ 9,402 | $ 6,628 | $ 3,915 |
SUMMARY OF PRINCIPAL ACCOUNTI_9
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Electricity revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Net revenues | $ 5,277,169 | $ 3,476,495 | $ 3,200,583 |
Electricity | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 29,420 | 9,706 | 5,866 |
CSI Solar Segment | Electricity | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 15,302 | 9,077 | $ 5,866 |
Global Energy Segment | Electricity | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | $ 14,118 | $ 629 |
SUMMARY OF PRINCIPAL ACCOUNT_10
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Revenue recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue recognition: | |||
Net revenues | $ 5,277,169 | $ 3,476,495 | $ 3,200,583 |
Electricity | |||
Revenue recognition: | |||
Net revenues | 29,420 | 9,706 | 5,866 |
CSI Solar Segment | Electricity | |||
Revenue recognition: | |||
Net revenues | 15,302 | 9,077 | 5,866 |
Global Energy Segment | Electricity | |||
Revenue recognition: | |||
Net revenues | 14,118 | 629 | |
Recognized at a point in time | CSI Solar Segment | |||
Revenue recognition: | |||
Net revenues | 3,881,573 | 2,704,332 | 2,210,459 |
Recognized at a point in time | Global Energy Segment | |||
Revenue recognition: | |||
Net revenues | 1,068,179 | 687,759 | 696,326 |
Recognized over time | CSI Solar Segment | |||
Revenue recognition: | |||
Net revenues | 271,513 | 45,996 | 271,389 |
Recognized over time | Global Energy Segment | |||
Revenue recognition: | |||
Net revenues | $ 55,904 | $ 38,408 | $ 22,409 |
SUMMARY OF PRINCIPAL ACCOUNT_11
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Revenue recognition - Contract assets and liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Contract Assets | ||
Accounts receivables, unbilled | $ 37,244 | $ 28,461 |
Contract Liabilities | ||
Advances from customers | 135,512 | 189,470 |
Other current liabilities | 98,494 | 35,012 |
Contract liability | 234,006 | $ 224,482 |
Revenue recognized from beginning balance of contract liabilities | 199,140 | |
Contract liabilities expected to be recognized | $ 234,006 |
SUMMARY OF PRINCIPAL ACCOUNT_12
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Shipping and handling costs, Research and development (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Research and development expenses | $ 58,407 | $ 45,167 | $ 47,045 |
Shipping and Handling | |||
Selling and distribution expenses | $ 316,358 | $ 134,248 | $ 88,079 |
SUMMARY OF PRINCIPAL ACCOUNT_13
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Other operating income, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue recognition: | |||
Gain on disposal of solar power systems | $ (10,091) | $ (1,666) | |
Net (gain) loss on disposal of property, plant and equipment | 83 | $ (253) | 1,227 |
(Insurance claims on) weather-related project damages | 1,408 | (1,025) | |
Other operating income, net | (47,068) | (25,523) | (10,536) |
Government grants | |||
Revenue recognition: | |||
Other operating income, net | $ (38,468) | $ (24,245) | $ (10,097) |
SUMMARY OF PRINCIPAL ACCOUNT_14
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Warranty cost (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
May 31, 2009 | Aug. 31, 2011 | Jun. 30, 2009 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Warranty cost | ||||||
Warranty accrual rate for sales of solar modules as a percentage of revenue | 1% | |||||
Unamortized carrying amount of insurance premium | $ 528 | $ 1,728 | ||||
Insurance receivable | 87,729 | 82,532 | ||||
Warranty adjustment | 2,622 | |||||
Downward adjustment of other non-current assets | 2,153 | |||||
Warranty costs (net effect of adjustment) included in cost of revenues | $ 45,053 | $ 26,931 | $ 28,044 | |||
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% | |||||
Minimum percentage of decline in initial minimum power generation capacity for 25 years | 20% | |||||
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_15
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Concentration of credit risk (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Concentration of credit risk | ||
Advances to suppliers | $ 225,879 | $ 182,146 |
Supplier | Supplier A | ||
Concentration of credit risk | ||
Advances to suppliers | 52,257 | $ 43,821 |
Supplier | Supplier B | ||
Concentration of credit risk | ||
Advances to suppliers | 37,117 | |
Supplier | Supplier C | ||
Concentration of credit risk | ||
Advances to suppliers | $ 36,026 |
SUMMARY OF PRINCIPAL ACCOUNT_16
SUMMARY OF PRINCIPAL ACCOUNTING POLICIES - Recently issued accounting pronouncements (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Recently issued accounting pronouncements | ||||
Right-of-use assets | $ 35,286 | $ 26,793 | ||
Lease liabilities | 35,400 | 28,436 | ||
Debt | $ 2,116,504 | $ 1,847,169 | ||
Accounting Standards Update 2020-04 [Member] | Forecast | ||||
Recently issued accounting pronouncements | ||||
Debt | $ 530,662 | |||
Accounting Standards Update 2020-04 [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Recently issued accounting pronouncements | ||||
Debt | $ 956,523 |
ALLOWANCE FOR CREDIT LOSSES (De
ALLOWANCE FOR CREDIT LOSSES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for credit losses | $ (47,126) | $ (40,293) | |
Receivable, Net | 651,372 | 408,958 | |
Movement of allowances | |||
Beginning of the year | 40,293 | ||
Closing balance | 47,126 | 40,293 | |
Allowances for accounts receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Receivable, gross | 698,498 | 449,251 | |
Allowance for credit losses | (47,126) | (40,293) | $ (29,545) |
Receivable, Net | 651,372 | 408,958 | |
Movement of allowances | |||
Beginning of the year | 40,293 | 29,545 | 32,733 |
Allowances made (reversed) during the year, net | (9,785) | (1,386) | |
Accounts written-off against allowances | (197) | (639) | (309) |
Foreign exchange effect | (141) | 1,602 | (1,493) |
Closing balance | 47,126 | 40,293 | 29,545 |
Allowances for advances to suppliers | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Receivable, gross | 279,800 | 299,019 | |
Allowance for credit losses | (19,682) | (19,700) | |
Receivable, Net | 260,118 | 279,319 | |
Movement of allowances | |||
Beginning of the year | 19,700 | ||
Closing balance | 19,682 | 19,700 | |
Allowances for other receivables | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Receivable, gross | 280,350 | 238,779 | |
Allowance for credit losses | (9,397) | (8,802) | |
Receivable, Net | 270,953 | 229,977 | |
Movement of allowances | |||
Beginning of the year | 8,802 | ||
Closing balance | 9,397 | 8,802 | |
Advances to Suppliers and Other Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Allowance for credit losses | (29,079) | (28,502) | (31,712) |
Movement of allowances | |||
Beginning of the year | 28,502 | 31,712 | 30,630 |
Allowances made (reversed) during the year, net | (1,647) | 2,657 | |
Accounts written-off against allowances | (53) | (5,490) | (1,452) |
Foreign exchange effect | 186 | 633 | (123) |
Closing balance | 29,079 | $ 28,502 | $ 31,712 |
Cumulative effect, adjustment | Allowances for accounts receivable | |||
Movement of allowances | |||
Allowances made (reversed) during the year, net | 7,171 | ||
Cumulative effect, adjustment | Advances to Suppliers and Other Receivable | |||
Movement of allowances | |||
Allowances made (reversed) during the year, net | $ 444 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
INVENTORIES | |||
Raw materials | $ 155,433 | $ 90,308 | |
Work-in-process | 117,509 | 69,132 | |
Finished goods | 919,432 | 536,541 | |
Inventories | 1,192,374 | 695,981 | |
Amount of finished goods includes modules | $ 163,078 | 181,012 | |
Federal Investment Tax Credit (as a percentage) | 5% | ||
Inventory written down | $ 14,070 | $ 42,907 | $ 19,447 |
PROJECT ASSETS (Details)
PROJECT ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
PROJECT ASSETS | |||
Project assets - Acquisition cost | $ 70,651 | $ 44,549 | |
Project assets - EPC and other cost | 956,710 | 1,092,917 | |
Total project assets | 1,027,361 | 1,137,466 | |
Current portion | 594,107 | 747,764 | |
Non-current portion | 433,254 | 389,702 | |
Impairment loss of project assets | $ 17,152 | $ 369 | $ 20,194 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Property, plant and equipment, gross | $ 2,363,713 | $ 1,843,761 | |
Accumulated depreciation | (1,019,988) | (827,601) | |
Impairment | (42,828) | (52,149) | |
Property, plant and equipment, excluding construction in process, net | 1,300,897 | 964,011 | |
Construction in process | 100,980 | 193,720 | |
Property, plant and equipment, net | 1,401,877 | 1,157,731 | |
Depreciation expense | 266,956 | 197,600 | $ 148,034 |
Buildings | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Property, plant and equipment, gross | 724,940 | 533,647 | |
Leasehold improvements | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Property, plant and equipment, gross | 32,995 | 14,804 | |
Machinery | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Property, plant and equipment, gross | 1,477,638 | 1,191,780 | |
Furniture, fixtures and equipment | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Property, plant and equipment, gross | 86,616 | 75,656 | |
Motor vehicles | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Property, plant and equipment, gross | 9,833 | 7,643 | |
Land | |||
PROPERTY, PLANT AND EQUIPMENT, NET | |||
Property, plant and equipment, gross | $ 31,691 | $ 20,231 |
SOLAR POWER SYSTEMS, NET (Detai
SOLAR POWER SYSTEMS, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, plant and equipment | |||
Accumulated depreciation | $ (13,760) | $ (30,535) | |
Solar power systems, net | 108,263 | 158,262 | |
Depreciation expense | 266,956 | 197,600 | $ 148,034 |
Solar power systems | |||
Property, plant and equipment | |||
Solar power systems, net | 117,339 | 182,232 | |
Depreciation expense | 11,212 | 6,396 | $ 6,379 |
Solar power systems under construction | |||
Property, plant and equipment | |||
Solar power systems, net | $ 4,684 | $ 6,565 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
INTANGIBLE ASSETS, NET | |||
Gross Carrying Amount | $ 40,636 | $ 42,628 | |
Accumulated Amortization | (21,644) | (20,199) | |
Total intangible assets, net | 18,992 | 22,429 | |
Amortization expense | 4,601 | 5,122 | $ 5,310 |
Expected amortization expense of intangible assets | |||
2022 | 4,409 | ||
2023 | 3,228 | ||
2024 | 2,691 | ||
2025 | 2,198 | ||
2026 | 2,052 | ||
2026 and thereafter | 4,414 | ||
Technical know-how | |||
INTANGIBLE ASSETS, NET | |||
Gross Carrying Amount | 1,577 | 1,543 | |
Accumulated Amortization | (1,562) | (1,525) | |
Total intangible assets, net | 15 | 18 | |
Computer software | |||
INTANGIBLE ASSETS, NET | |||
Gross Carrying Amount | 39,059 | 41,085 | |
Accumulated Amortization | (20,082) | (18,674) | |
Total intangible assets, net | $ 18,977 | $ 22,411 |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) $ in Thousands | Jul. 31, 2020 USD ($) |
Interest rate swap | 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 | |
Total notional | $ 399,000 |
FAIR VALUE MEASUREMENT - Intere
FAIR VALUE MEASUREMENT - Interest rate swap (Details) - Not designated as hedging instruments - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Effect of fair value of derivative instruments on the consolidated balance sheets | ||
Total derivatives asset | $ 7,362 | $ 23,351 |
Total derivatives liability | 2,622 | 10,755 |
Derivative assets - current | Foreign exchange forward contracts | ||
Effect of fair value of derivative instruments on the consolidated balance sheets | ||
Total derivatives asset | 7,124 | 22,178 |
Derivative assets - current | Foreign exchange option contracts | ||
Effect of fair value of derivative instruments on the consolidated balance sheets | ||
Total derivatives asset | 162 | 1,173 |
Other non-current assets. | Interest rate swap | ||
Effect of fair value of derivative instruments on the consolidated balance sheets | ||
Total derivatives asset | 76 | |
Derivative liabilities - current | Foreign exchange forward contracts | ||
Effect of fair value of derivative instruments on the consolidated balance sheets | ||
Total derivatives liability | $ 2,622 | 10,753 |
Derivative liabilities - current | Foreign exchange option contracts | ||
Effect of fair value of derivative instruments on the consolidated balance sheets | ||
Total derivatives liability | $ 2 |
FAIR VALUE MEASUREMENT - Gain (
FAIR VALUE MEASUREMENT - Gain (Loss) Recognized in Statements of Operation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effect of derivative instruments on consolidated statements of operations | |||
Gain (loss) on change in fair value of derivatives | $ 23,785 | $ 50,001 | $ (22,218) |
Foreign exchange forward contracts | |||
Effect of derivative instruments on consolidated statements of operations | |||
Gain (loss) on change in fair value of derivatives | 22,582 | 49,807 | (20,249) |
Foreign exchange option contracts | |||
Effect of derivative instruments on consolidated statements of operations | |||
Gain (loss) on change in fair value of derivatives | 220 | 1,376 | (1,022) |
Commodity hedge | |||
Effect of derivative instruments on consolidated statements of operations | |||
Gain (loss) on change in fair value of derivatives | $ 983 | ||
Interest rate swap | |||
Effect of derivative instruments on consolidated statements of operations | |||
Gain (loss) on change in fair value of derivatives | $ (1,182) | $ (947) |
FAIR VALUE MEASUREMENT - Carryi
FAIR VALUE MEASUREMENT - Carrying value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
FAIR VALUE MEASUREMENT | |||
Impairment charges for property, plant and equipment | $ 6,084 | $ 11,854 | $ 21,866 |
Carrying value of long-term borrowings | 523,634 | 446,090 | |
Convertible notes | 224,675 | 223,214 | |
Impairment loss of project assets | $ 17,152 | $ 369 | $ 20,194 |
FAIR VALUE MEASUREMENT - Listed
FAIR VALUE MEASUREMENT - Listed equity securities (Details) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2020 CNY (¥) | Dec. 31, 2020 USD ($) | |
FAIR VALUE MEASUREMENT | ||||
Amount of shares received | ¥ 91,370 | $ 14,003,000 | ||
Unrealized gains | $ 4,744,000 | $ 1,048,000 | ||
Amount of shares carried at fair value | $ 20,195 | $ 15,056 |
VARIABLE INTEREST ENTITIES (Det
VARIABLE INTEREST ENTITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
VARIABLE INTEREST ENTITIES | ||
TOTAL ASSETS | $ 7,388,342 | $ 6,536,854 |
Short-term borrowings | 1,271,215 | 1,202,285 |
Long-term borrowings | 1,024,175 | |
TOTAL LIABILITIES | 5,261,904 | 4,644,069 |
Variable Interest Entity | ||
VARIABLE INTEREST ENTITIES | ||
Cash | 48,200 | 42,064 |
Project assets | 289,315 | 337,836 |
Other assets | 53,091 | 79,580 |
TOTAL ASSETS | 390,606 | 459,480 |
Short-term borrowings | 113,857 | 180,773 |
Long-term borrowings | 106,880 | 52,408 |
Other liabilities | 36,872 | 60,845 |
TOTAL LIABILITIES | $ 257,609 | $ 294,026 |
INVESTMENTS IN AFFILIATES (Deta
INVESTMENTS IN AFFILIATES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Oct. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2015 |
Other investments | |||||
Investments in affiliates | $ 98,819 | $ 78,291 | |||
RE Roserock Holdings LLC ("Roserock") | |||||
Other investments | |||||
Investments in affiliates | $ 18,854 | ||||
Ownership percentage | 20% | ||||
RE Crimson Holdings LLC | |||||
Other investments | |||||
Ownership percentage | 20% | ||||
Canadian Solar Infrastructure Fund, Inc | |||||
Other investments | |||||
Investments in affiliates | $ 12,889 | $ 19,980 | |||
Ownership percentage | 14.64% | 14.66% | |||
Suzhou Financial Leasing Co., Ltd. | |||||
Other investments | |||||
Investments in affiliates | $ 27,026 | $ 23,969 | |||
Ownership percentage | 4.78% | 4.78% | 4.78% | ||
Others | |||||
Other investments | |||||
Investments in affiliates | $ 33,776 | $ 34,342 | |||
Others | Minimum | |||||
Other investments | |||||
Ownership percentage | 20% | 15% | |||
Others | Maximum | |||||
Other investments | |||||
Ownership percentage | 49% | 49% | |||
JuSheng (Suzhou) Solar Tech Co., Ltd | |||||
Other investments | |||||
Investments in affiliates | $ 6,274 | ||||
Ownership percentage | 4.55% | 4.55% |
INVESTMENTS IN AFFILIATES - Tax
INVESTMENTS IN AFFILIATES - Tax equity transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Tax equity transactions | |||
Gain on disposal of investment in affiliates | $ 10,392 | $ 13,936 | $ 1,928 |
RE Roserock Holdings LLC ("Roserock") | |||
Tax equity transactions | |||
Ownership percentage | 20% |
INVESTMENTS IN AFFILIATES - Oth
INVESTMENTS IN AFFILIATES - Other investments (Details) | 1 Months Ended | 12 Months Ended | |||||||||
Mar. 05, 2021 USD ($) shares | Mar. 05, 2021 JPY (¥) ¥ / shares shares | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) shares | Dec. 31, 2021 JPY (¥) shares | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Oct. 31, 2021 | Sep. 05, 2018 shares | Oct. 26, 2017 shares | Dec. 31, 2015 | |
Other investments | |||||||||||
Subscription amount | $ 54,004,000 | $ 17,758,000 | $ 7,684,000 | ||||||||
Equity in earnings (loss) of unconsolidated investees | 7,256,000 | 10,779,000 | 28,948,000 | ||||||||
Impairment loss of investment | 0 | 24,060,000 | 0 | ||||||||
Gain on sale of interest in affiliates | $ 10,392,000 | $ 13,936,000 | $ 1,928,000 | ||||||||
Canadian Solar Infrastructure Fund, Inc | |||||||||||
Other investments | |||||||||||
Stock Issued During Period, Shares, New Issues | shares | 151,500 | 151,500 | |||||||||
Investment price per unit | ¥ / shares | ¥ 125,115 | ||||||||||
Suzhou Financial Leasing Co., Ltd. | |||||||||||
Other investments | |||||||||||
Ownership percentage | 4.78% | 4.78% | 4.78% | 4.78% | |||||||
Canadian Solar Infrastructure Fund, Inc | |||||||||||
Other investments | |||||||||||
Subscription amount | $ 25,683 | ¥ 2,843,238 | $ 55,697 | ¥ 6,247,998 | |||||||
Ownership percentage | 14.64% | 14.64% | 14.66% | ||||||||
Number of Units Purchased | shares | 22,725 | 56,620 | 56,620 | 7,000 | |||||||
Canadian Solar Infrastructure Fund, Inc | Initial public offer | |||||||||||
Other investments | |||||||||||
Number of Units Purchased | shares | 25,395 | ||||||||||
Canadian Solar Infrastructure Fund, Inc | Private placement | |||||||||||
Other investments | |||||||||||
Number of Units Purchased | shares | 1,500 | ||||||||||
RE Crimson Holdings LLC | |||||||||||
Other investments | |||||||||||
Ownership percentage | 20% | ||||||||||
Interest sold (in percent) | 80% | ||||||||||
Gain on sale of interest in affiliates | $ 123,135,000 | ||||||||||
Net assets derecognized | $ 42,333,000 | ||||||||||
Horus Solar S.A. De Capital Variable ("Horus") and Recursos Solares PV De Mxico II S.A. De Capital Variable ("Recursos") [Member] | |||||||||||
Other investments | |||||||||||
Ownership percentage | 49% | 49% | |||||||||
Gain on sale of interest in affiliates | $ 113,843,000 | $ 100,896,000 | |||||||||
Net assets derecognized | $ 7,527,000 | $ 10,363,000 | |||||||||
JuSheng (Suzhou) Solar Tech Co., Ltd | |||||||||||
Other investments | |||||||||||
Ownership percentage | 4.55% | 4.55% | 4.55% |
LEASE - Lease expense (Details)
LEASE - Lease expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finance lease cost: | ||
Amortization of right-of-use assets | $ 14,920 | $ 8,036 |
Interest on lease liabilities | 1,349 | 1,497 |
Operating lease cost | 18,443 | 19,630 |
Short term lease cost | 1,884 | 850 |
Total lease cost | $ 36,596 | $ 30,013 |
Maximum | ||
Finance lease cost: | ||
Lease term | 20 years |
LEASE - Cash flow (Details)
LEASE - Cash flow (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
LEASE | ||
Operating cash outflows from finance leases | $ (1,349) | $ (1,497) |
Operating cash outflows from operating leases | (19,972) | (20,589) |
Financing cash outflows from finance lease | (35,554) | (19,163) |
ROU assets obtained in exchange of new finance lease liabilities | 60,102 | 10,666 |
ROU assets obtained in exchange of new operating leases | 24,694 | 14,892 |
ROU assets disposed through early termination of operating leases in non-cash transaction | $ (1,880) | $ (6,572) |
LEASE - Additional information
LEASE - Additional information (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
LEASE | ||
Weighted average term - finance leases | 2 years 7 months 28 days | 10 months 24 days |
Weighted average term - operating lease | 4 years 4 months 24 days | 3 years 25 days |
Weighted average discount rate - finance lease | 4.95% | 5.54% |
Weighted average discount rate - operating lease | 4.34% | 4.18% |
LEASE - Operating leases - Matu
LEASE - Operating leases - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
LEASE | ||
2021 | $ 12,768 | $ 14,374 |
2022 | 7,941 | 7,427 |
2023 | 4,833 | 3,632 |
2024 | 1,880 | 1,242 |
2025 | 2,398 | 369 |
Thereafter | 10,651 | 1,859 |
Total future minimum lease payments | $ 40,471 | $ 28,903 |
LEASE - Operating leases - Gros
LEASE - Operating leases - Gross difference (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating leases, gross difference | ||
Total future minimum lease payments | $ 40,471 | $ 28,903 |
Less: imputed interest | 5,071 | 467 |
NPV for future minimum lease payments | $ 35,400 | $ 28,436 |
LEASE - Finance leases - Maturi
LEASE - Finance leases - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Maturities of finance leases | ||
2021 | $ 20,381 | $ 22,706 |
2022 | 17,052 | 2,514 |
2023 | 16,272 | |
Total future minimum lease payments | $ 53,705 | $ 25,220 |
LEASE - Finance leases - Gross
LEASE - Finance leases - Gross difference (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Maturities of finance leases | ||
Total Finance lease liabilities | $ 50,153 | $ 24,257 |
Total future minimum lease payments | 53,705 | 25,220 |
Less: imputed interest | $ 3,552 | $ 963 |
LEASE - Total leases - Maturiti
LEASE - Total leases - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
LEASE | ||
2020 | $ 37,080 | |
2021 | 9,941 | |
2022 | 3,632 | |
2023 | 1,242 | |
2024 | 369 | |
Thereafter | 1,859 | |
Total future minimum lease payments | $ 54,123 | |
2019 | $ 33,149 | |
2020 | 24,993 | |
2021 | 21,105 | |
2022 | 1,880 | |
2023 | 2,398 | |
Thereafter | 10,651 | |
Total future minimum lease payments | $ 94,176 |
LEASE - Total leases - Gross di
LEASE - Total leases - Gross difference (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
LEASE | ||
Total future minimum lease payments | $ 54,123 | |
Less: imputed interest | 1,430 | |
NPV for future minimum lease payments | $ 85,553 | $ 52,693 |
Total future minimum lease payments | 94,176 | |
Less: imputed interest | 8,623 | |
NPV for future minimum lease payments | $ 85,553 |
LEASE - Total leases - Summary
LEASE - Total leases - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases | ||
Short-term | $ 30,934 | $ 37,091 |
Long-term | 54,619 | 15,602 |
Total lease liabilities | 85,553 | 52,693 |
Operating lease liabilities, current | 12,185 | 15,204 |
Operating lease liabilities, noncurrent | 23,215 | 13,232 |
Total operating lease liabilities | 35,400 | 28,436 |
Finance lease liabilities, current | $ 18,749 | $ 21,887 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Finance lease liabilities, noncurrent | $ 31,404 | $ 2,370 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other non-current liabilities | Other non-current liabilities |
Total Finance lease liabilities | $ 50,153 | $ 24,257 |
BORROWINGS (Details)
BORROWINGS (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||
Aug. 31, 2021 USD ($) | Apr. 30, 2021 USD ($) item | Oct. 31, 2020 USD ($) Institution | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) Institution | Dec. 31, 2019 USD ($) | Dec. 31, 2016 USD ($) Institution | Nov. 30, 2023 USD ($) | Nov. 30, 2021 USD ($) | Nov. 30, 2021 CNY (¥) | Sep. 30, 2021 USD ($) | Sep. 30, 2021 JPY (¥) | Aug. 31, 2021 CNY (¥) | Jun. 30, 2021 USD ($) | Apr. 30, 2021 CNY (¥) | Mar. 31, 2021 JPY (¥) | Feb. 28, 2021 USD ($) | Feb. 28, 2021 JPY (¥) | Dec. 31, 2020 AUD ($) | Oct. 31, 2020 JPY (¥) | Dec. 31, 2019 THB (฿) | Dec. 31, 2016 JPY (¥) | ||
BANK BORROWINGS | |||||||||||||||||||||||
Short-term borrowings | $ 1,092,329 | $ 912,549 | |||||||||||||||||||||
Long-term borrowings, current portion | 178,886 | 289,736 | |||||||||||||||||||||
Long-term borrowings on project assets - current | [1] | 321,655 | 198,794 | ||||||||||||||||||||
Subtotal for short-term borrowings | 1,592,870 | 1,401,079 | |||||||||||||||||||||
Long-term borrowings | 523,634 | 446,090 | |||||||||||||||||||||
Total | 2,116,504 | 1,847,169 | |||||||||||||||||||||
Secured borrowings | 1,348,352 | ||||||||||||||||||||||
Future principal repayment of long-term borrowings on project assets - current | 321,655 | ||||||||||||||||||||||
Short-term borrowings | 596,484 | ||||||||||||||||||||||
Long-term borrowings, current | 98,949 | ||||||||||||||||||||||
Long-term borrowings on project assets - current | 318,506 | ||||||||||||||||||||||
Long-term borrowings | 334,413 | ||||||||||||||||||||||
Outstanding balance | 2,116,504 | 1,847,169 | |||||||||||||||||||||
Amount of development loan | $ 75,000 | ||||||||||||||||||||||
Total Amount Of Matures | $ 125,000 | ||||||||||||||||||||||
Asset Pledged as Collateral without Right [Member] | |||||||||||||||||||||||
BANK BORROWINGS | |||||||||||||||||||||||
Carrying value of property, plant and equipment that serve as collateral for short-term and long-term borrowings | 417,055 | ||||||||||||||||||||||
Carrying value of inventories that serve as collateral for short-term and long-term borrowings | 163,910 | ||||||||||||||||||||||
Carrying value of prepaid land use rights that serve as collateral for short-term and long-term borrowings | 52,253 | ||||||||||||||||||||||
Carrying value of restricted cash that serve as collateral for short-term and long-term borrowings | 67,031 | ||||||||||||||||||||||
Carrying value of accounts receivable that serve as collateral for short-term and long-term borrowings | 32,481 | ||||||||||||||||||||||
Carrying value of equity that serve as collateral for short-term and long-term borrowings | 348,238 | ||||||||||||||||||||||
Carrying value of project assets and solar power systems that serve as collateral for short-term and long-term borrowings | 682,136 | ||||||||||||||||||||||
Azuma Kofuji Daiichi Hatsudensho G.K. | |||||||||||||||||||||||
BANK BORROWINGS | |||||||||||||||||||||||
Amount of loan facility | 105,542 | $ 230,759 | ¥ 24,513,530 | ||||||||||||||||||||
Canadian Solar Sunenergy (Jiaxing) Co. Ltd | |||||||||||||||||||||||
BANK BORROWINGS | |||||||||||||||||||||||
Amount drawn | 7,387 | ||||||||||||||||||||||
Amount of loan facility | $ 90,918 | ¥ 580,000 | |||||||||||||||||||||
Canadian Solar Project K.K. | |||||||||||||||||||||||
BANK BORROWINGS | |||||||||||||||||||||||
Amount of loan facility | $ 88,200 | $ 85,200 | $ 89,859 | ¥ 10,000,000 | ¥ 9,100,000 | ¥ 9,600,000 | |||||||||||||||||
Term of facility (in years) | 2 years | 3 years | |||||||||||||||||||||
Number of participating financial institutions | Institution | 11 | 13 | |||||||||||||||||||||
Suntop Finco Pty Ltd. and Gunnedah Finco Pty Ltd | |||||||||||||||||||||||
BANK BORROWINGS | |||||||||||||||||||||||
Amount drawn of bank credit facilities granted | 154,027 | ||||||||||||||||||||||
Outstanding balance | 154,027 | ||||||||||||||||||||||
Four Japanese Subsidiaries | |||||||||||||||||||||||
BANK BORROWINGS | |||||||||||||||||||||||
Amount of loan facility | $ 73,167 | ¥ 8,100,000 | |||||||||||||||||||||
Credit facility | |||||||||||||||||||||||
BANK BORROWINGS | |||||||||||||||||||||||
Available amount of credit facilities | 1,249,625 | ||||||||||||||||||||||
Amount drawn of bank credit facilities granted | 1,595,684 | ||||||||||||||||||||||
Additional amount drawn of under borrowing | 511,700 | ||||||||||||||||||||||
Maximum borrowing capacity | 3,357,009 | ||||||||||||||||||||||
Outstanding balance | 1,595,684 | ||||||||||||||||||||||
Credit facility | Canadian Solar Manufacturing (Thailand) Co., Ltd. | |||||||||||||||||||||||
BANK BORROWINGS | |||||||||||||||||||||||
Amount drawn of bank credit facilities granted | 61,506 | ||||||||||||||||||||||
Term of facility (in years) | 5 years | ||||||||||||||||||||||
Maximum borrowing capacity | $ 188,000 | ||||||||||||||||||||||
Outstanding balance | 61,506 | ||||||||||||||||||||||
Credit facility | CSI Solar Co., Ltd. and Canadian Solar Manufacturing (Changshu) Inc | |||||||||||||||||||||||
BANK BORROWINGS | |||||||||||||||||||||||
Number of credit facilities | item | 2 | ||||||||||||||||||||||
Amount drawn | 135,008 | ||||||||||||||||||||||
Maximum borrowing capacity | $ 177,820 | ¥ 1,150,000 | |||||||||||||||||||||
Credit facility | Canadian Solar Manufacturing (Changshu) Inc. | |||||||||||||||||||||||
BANK BORROWINGS | |||||||||||||||||||||||
Amount drawn | 62,333 | ||||||||||||||||||||||
Term of facility (in years) | 1 year | ||||||||||||||||||||||
Maximum borrowing capacity | $ 92,766 | ¥ 600,000 | |||||||||||||||||||||
Working Capital Facility | Canadian Solar Manufacturing (Thailand) Co., Ltd. | |||||||||||||||||||||||
BANK BORROWINGS | |||||||||||||||||||||||
Amount drawn of bank credit facilities granted | 103,487 | ||||||||||||||||||||||
Maximum borrowing capacity | $ 106,729 | ฿ 3,540,000 | |||||||||||||||||||||
Outstanding balance | 103,487 | ||||||||||||||||||||||
Non-binding bank credit facilities | |||||||||||||||||||||||
BANK BORROWINGS | |||||||||||||||||||||||
Amount drawn | 375,963 | ||||||||||||||||||||||
Maximum borrowing capacity | 962,564 | ||||||||||||||||||||||
Short Term Note Payable | |||||||||||||||||||||||
BANK BORROWINGS | |||||||||||||||||||||||
Additional amount drawn of under borrowing | 250,321 | ||||||||||||||||||||||
Nonrecourse [Member] | |||||||||||||||||||||||
BANK BORROWINGS | |||||||||||||||||||||||
Amount drawn of bank credit facilities granted | 514,756 | ||||||||||||||||||||||
Outstanding balance | $ 514,756 | ||||||||||||||||||||||
Nonrecourse [Member] | Suntop Finco Pty Ltd. and Gunnedah Finco Pty Ltd | |||||||||||||||||||||||
BANK BORROWINGS | |||||||||||||||||||||||
Term of facility (in years) | 5 years | ||||||||||||||||||||||
Number of participating financial institutions | Institution | 3 | ||||||||||||||||||||||
Maximum borrowing capacity | $ 206,022 | $ 289,419 | |||||||||||||||||||||
[1] Certain long-term borrowings were classified as current liabilities because these borrowings are associated with certain solar and battery storage projects that are expected to be sold within one year. |
BORROWINGS - Short term (Detail
BORROWINGS - Short term (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
BORROWINGS | ||
Short-term borrowings | $ 1,271,215 | $ 1,202,285 |
BORROWINGS - Long term (Details
BORROWINGS - Long term (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
BORROWINGS | ||
Long-term borrowings | $ 523,634 | $ 446,090 |
Future principal repayment on the long-term borrowings loans | ||
2022 | 500,541 | |
2023 | 336,504 | |
2024 | 160,043 | |
2025 | 6,822 | |
2026 | 4,783 | |
Thereafter | 15,482 | |
Total | 1,024,175 | |
Less: future principal repayment related to long-term borrowings, current portion | (500,541) | |
Total long-term portion | $ 523,634 | $ 446,090 |
Minimum | ||
BORROWINGS | ||
Average interest rate on long-term borrowings (as a percent) | 1% | |
Maximum | ||
BORROWINGS | ||
Average interest rate on long-term borrowings (as a percent) | 5.70% |
BORROWINGS - Long term narrativ
BORROWINGS - Long term narrative and interest expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
BORROWINGS | |||
Floating interest rate (as a percent) | 3.46% | 4.37% | |
Interest expense | |||
Interest capitalized - project assets | $ 17,316 | $ 10,197 | $ 10,794 |
Interest capitalized - property, plant, and equipment | 154 | 2,620 | |
Interest expense | 58,153 | 71,874 | 81,326 |
Total interest incurred | $ 75,469 | $ 82,225 | $ 94,740 |
Unsecured | |||
BORROWINGS | |||
Floating interest rate (as a percent) | 3.03% | 3.26% | |
Secured by project assets and solar power systems | |||
BORROWINGS | |||
Floating interest rate (as a percent) | 3.04% | 3.63% |
SHORT-TERM NOTES PAYABLE (Detai
SHORT-TERM NOTES PAYABLE (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
SHORT-TERM NOTES PAYABLE | ||
Short-term notes payable | $ 881,184 | $ 710,636 |
ACCRUED WARRANTY COSTS (Details
ACCRUED WARRANTY COSTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
ACCRUED WARRANTY COSTS | |||
Beginning balance | $ 37,732 | $ 55,878 | $ 50,605 |
Warranty provision | 45,053 | 26,931 | 28,044 |
Warranty costs incurred | (35,432) | (46,067) | (23,282) |
Foreign exchange effect | (2,207) | 990 | 511 |
Ending balance | $ 45,146 | $ 37,732 | $ 55,878 |
RESTRICTED NET ASSETS (Details)
RESTRICTED NET ASSETS (Details) $ in Thousands | Dec. 31, 2021 USD ($) |
RESTRICTED NET ASSETS | |
Minimum percentage of the profit after tax to be appropriated to the general reserve | 10% |
Restricted net assets | $ 602,460 |
CONVERTIBLE NOTES (Details)
CONVERTIBLE NOTES (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 16, 2020 USD ($) item D $ / shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
CONVERTIBLE NOTES | |||
Amortization of financing costs | $ 1,461 | $ 388 | |
Interest expense | 5,750 | 1,677 | |
Convertible Debt | |||
CONVERTIBLE NOTES | |||
Proceeds from initial issuance of convertible notes | $ 200,000 | ||
Period of option for additional issuance | 30 days | ||
Proceeds from additional issuance of convertible notes | $ 30,000 | ||
Interest rate (as a percent) | 2.50% | ||
Conversion rate | 27.2707 | ||
Conversion rate initial principal amount | $ 1,000 | ||
Conversion price (in dollars per share) | $ / shares | $ 36.67 | ||
Sales price of common stock as percentage of conversion price for redemption at Company's option | 130% | ||
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% | ||
Carrying value of convertible notes | 224,675 | 223,214 | |
Unamortized issuance costs | $ 5,325 | 6,786 | |
Effective interest rate (as a percent) | 3.18% | ||
Interest not paid recorded in other payables | $ 1,438 | $ 1,677 |
INCOME TAXES - Provision for in
INCOME TAXES - Provision for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income before income taxes | |||
Income (loss) before income taxes | $ 145,720 | $ 145,263 | $ 208,621 |
Current tax | |||
Current tax expense (benefit) | 103,081 | 22,255 | 56,685 |
Deferred tax | |||
Deferred tax expense (benefit) | (67,237) | (24,238) | (14,619) |
Total income tax expense | |||
Total income tax expense (benefit) | 35,844 | (1,983) | 42,066 |
Canada | |||
Income before income taxes | |||
Income (loss) before income taxes | 5,922 | (31,896) | (61,880) |
Current tax | |||
Current tax expense (benefit) | (1,124) | 36,226 | (3,420) |
Deferred tax | |||
Deferred tax expense (benefit) | 685 | (10,792) | (6,558) |
Total income tax expense | |||
Total income tax expense (benefit) | (439) | 25,434 | (9,978) |
United States | |||
Income before income taxes | |||
Income (loss) before income taxes | 66,431 | (113,262) | 8,319 |
Current tax | |||
Current tax expense (benefit) | 15,937 | (71,421) | (4,803) |
Deferred tax | |||
Deferred tax expense (benefit) | (1,604) | 23,173 | (2,412) |
Total income tax expense | |||
Total income tax expense (benefit) | 14,333 | (48,248) | (7,215) |
PRC | |||
Income before income taxes | |||
Income (loss) before income taxes | (32,716) | 189,398 | 204,632 |
Current tax | |||
Current tax expense (benefit) | 47,356 | 30,276 | 44,622 |
Deferred tax | |||
Deferred tax expense (benefit) | (65,017) | (17,998) | (5,333) |
Total income tax expense | |||
Total income tax expense (benefit) | (17,661) | 12,278 | 39,289 |
Japan | |||
Income before income taxes | |||
Income (loss) before income taxes | 54,770 | 50,642 | 29,335 |
Current tax | |||
Current tax expense (benefit) | 24,047 | 18,941 | 13,229 |
Deferred tax | |||
Deferred tax expense (benefit) | (353) | (10,571) | (2,953) |
Total income tax expense | |||
Total income tax expense (benefit) | 23,694 | 8,370 | 10,276 |
Other | |||
Income before income taxes | |||
Income (loss) before income taxes | 51,313 | 50,381 | 28,215 |
Current tax | |||
Current tax expense (benefit) | 16,865 | 8,233 | 7,057 |
Deferred tax | |||
Deferred tax expense (benefit) | (948) | (8,050) | 2,637 |
Total income tax expense | |||
Total income tax expense (benefit) | $ 15,917 | $ 183 | $ 9,694 |
INCOME TAXES - Domestic federal
INCOME TAXES - Domestic federal statutory tax rates (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | 48 Months Ended | ||||
Dec. 31, 2020 USD ($) | Jun. 30, 2020 USD ($) | Dec. 31, 2021 USD ($) item | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2017 | Dec. 31, 2019 USD ($) | |
Income taxes: | |||||||
Federal and provincial income tax rate (as a percent) | 27% | 27% | 27% | ||||
Amount of interest and penalties accrued related to unrecognized tax benefits | $ 5,101 | $ 1,585 | $ 5,101 | ||||
Effective Income Tax Rate Reconciliation at Federal and Provincial Income Tax Rate | 27% | 27% | 27% | ||||
Changes to the company's liabilities for uncertain tax positions | |||||||
Beginning balance | $ 10,557 | $ 9,628 | $ 10,557 | $ 15,730 | |||
Addition for tax positions related to the current year | 11 | ||||||
Reductions for tax positions from prior years/Statute of limitations expirations | (3,763) | (5,720) | |||||
Statue of limitations expirations | (1,011) | ||||||
Foreign exchange effect | 82 | 536 | |||||
Foreign exchange effect | (2) | ||||||
Ending balance | $ 9,628 | $ 5,863 | $ 9,628 | $ 10,557 | $ 10,557 | ||
Canada | |||||||
Income taxes: | |||||||
Federal and provincial income tax rate (as a percent) | 26.50% | 26.50% | 26.50% | 26.50% | |||
Effective Income Tax Rate Reconciliation at Federal and Provincial Income Tax Rate | 26.50% | 26.50% | 26.50% | 26.50% | |||
Canada | Canadian Solar Solutions Inc. | |||||||
Income taxes: | |||||||
Federal and provincial income tax rate (as a percent) | 25% | 25% | 25% | ||||
Effective Income Tax Rate Reconciliation at Federal and Provincial Income Tax Rate | 25% | 25% | 25% | ||||
United States | Canadian Solar (USA) Inc. | |||||||
Income taxes: | |||||||
Income tax rate (as a percent) | 26.40% | 22.20% | 22.90% | ||||
United States | Canadian Solar Energy Acquisition Co. | |||||||
Income taxes: | |||||||
Income tax rate (as a percent) | 22.20% | 26.10% | 27.90% | ||||
Japan | Canadian Solar Japan K.K. | |||||||
Income taxes: | |||||||
Income tax rate (as a percent) | 31.80% | 31.80% | 31.80% | ||||
Germany | Canadian Solar EMEA GmbH | |||||||
Income taxes: | |||||||
Income tax rate (as a percent) | 33% | 33% | 33% | ||||
Vietnam | Canadian Solar Manufacturing Vietnam Co., Ltd | |||||||
Income taxes: | |||||||
Income tax rate (as a percent) | 10% | ||||||
Reduced income tax rate from 2020 to 2028 (as a percent) | 5% | ||||||
Thailand | Canadian Solar Manufacturing (Thailand) Co., Ltd. | |||||||
Income taxes: | |||||||
Income tax rate (as a percent) | 20% | ||||||
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||||
Accrued warranty costs | $ 14,942 | $ 8,699 | ||
Bad debt allowance | 12,175 | 3,218 | ||
Inventory write-down | 1,404 | 3,121 | ||
Future deductible expenses | 24,910 | 24,454 | ||
Depreciation and impairment difference of property, plant and equipment and solar power systems | 24,561 | 30,138 | ||
Accrued liabilities related to antidumping, countervailing and other duty costs and true-up charges | 39 | 406 | ||
Government subsidies | 39,470 | 16,461 | ||
Net operating losses carry-forward | 110,012 | 85,850 | ||
Unrealized foreign exchange loss and capital loss | 491 | 1,221 | ||
Interest limitation | 10,800 | 1,956 | ||
Others | 47,690 | 30,958 | ||
Total deferred tax assets, gross | 286,494 | 206,482 | ||
Valuation allowance | (45,682) | (50,118) | ||
Total deferred tax assets, net of valuation allowance | 240,812 | 156,364 | ||
Deferred tax liabilities: | ||||
Derivative assets | 2,153 | 996 | ||
Depreciation difference of property, plant and equipment | 27,776 | 17,027 | ||
Insurance recoverable | 32 | 785 | ||
Unrealized foreign exchange gain | 3,452 | 10,746 | ||
Others | 19,046 | 5,234 | ||
Total deferred tax liabilities | 52,459 | 34,788 | ||
Analysis as: | ||||
Deferred tax assets | 236,503 | 170,656 | ||
Deferred tax liabilities | (48,150) | (49,080) | ||
Net deferred tax assets | 188,353 | 121,576 | ||
Accumulated net operating losses | 700,667 | |||
Accumulated net operating losses subject to expiration between 2021 and 2040 | 398,744 | |||
Allowance | ||||
Deferred tax assets: | ||||
Valuation allowance | $ (45,682) | $ (50,118) | $ (70,627) | $ (76,522) |
INCOME TAXES - Reconciliation (
INCOME TAXES - Reconciliation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
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% | 27% | 27% |
Effect of permanent difference (as a percent) | 3% | 4% | (1.00%) |
Effect of different tax rate on earnings in other jurisdictions (as a percent) | 9% | (6.00%) | 3% |
Effect of tax holiday (as a percent) | (3.00%) | (1.00%) | (4.00%) |
Effect of true-up (as a percent) | 4% | (13.00%) | (3.00%) |
Unrecognized tax provision (as a percent) | (5.00%) | ||
Change in valuation allowance (as a percent) | (3.00%) | (14.00%) | (3.00%) |
Effect of change in tax rate | (7.00%) | 2% | (1.00%) |
Others (as a percent) | 2% | ||
Actual income tax rate (as a percent) | 25% | (1.00%) | 20% |
Additional disclosure | |||
Undistributed earnings of subsidiaries and affiliates considered to be permanently reinvested | $ 604,781,000 | ||
Provision for withholding income tax on dividend | $ 0 | ||
Preferential withholding tax rate (as a percent) | 5% | ||
Aggregate amount and per share effect of the tax holiday | |||
The aggregate amount (in dollars) | $ 4,466,000 | $ 1,287,000 | $ 7,956,000 |
Per share effect - basic (in dollars per share) | $ 0.07 | $ 0.02 | $ 0.13 |
Per share effect - diluted (in dollars per share) | $ 0.07 | $ 0.02 | $ 0.13 |
Minimum | |||
Additional disclosure | |||
Withholding income tax rate on dividends distributed by foreign invested enterprises (as a percent) | 5% | ||
Unrecognized deferred tax liabilities | $ 30,239,000 | ||
Maximum | |||
Additional disclosure | |||
Withholding income tax rate on dividends distributed by foreign invested enterprises (as a percent) | 10% | ||
Unrecognized deferred tax liabilities | $ 60,478,000 |
INCOME TAXES - Movement of the
INCOME TAXES - Movement of the valuation allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement of allowances | |||
Beginning of the year | $ 50,118 | ||
End of the year | 45,682 | $ 50,118 | |
Allowance | |||
Movement of allowances | |||
Beginning of the year | 50,118 | 70,627 | $ 76,522 |
Additions (Reversals) | (4,671) | (21,585) | (6,156) |
Foreign exchange effect | 235 | 1,076 | 261 |
End of the year | $ 45,682 | $ 50,118 | $ 70,627 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Anti-dilutive shares excluded from the computation of diluted earnings per share | |||
Net income attributable to Canadian Solar Inc. - basic | $ 95,248 | $ 146,703 | $ 171,585 |
Dilutive effect of interest expense of convertible notes | 5,300 | 1,518 | 975 |
Net income attributable to Canadian Solar Inc. - diluted | $ 100,548 | $ 148,221 | $ 172,560 |
Denominator for basic calculation - weighted average number of common shares - basic | 61,614,391 | 59,575,898 | 59,633,855 |
Diluted effects of share number from share options and RSUs | 985,554 | 897,258 | 794,526 |
Dilutive effects of share number from convertible notes | 6,272,157 | 1,833,663 | 349,315 |
Denominator for diluted calculation - weighted average number of common shares - diluted | 68,872,102 | 62,306,819 | 60,777,696 |
Basic earnings per share | $ 1.55 | $ 2.46 | $ 2.88 |
Diluted earnings per share | $ 1.46 | $ 2.38 | $ 2.83 |
Share options and RSUs | |||
Anti-dilutive shares excluded from the computation of diluted earnings per share | |||
Anti-dilutive shares excluded from the computation of diluted earnings per share, total | 3,877 | 187,083 | 41,950 |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Details) ¥ in Thousands, R$ in Thousands, R in Thousands | 6 Months Ended | 11 Months Ended | 12 Months Ended | |||||||||||||||||
Jun. 30, 2020 USD ($) | Jun. 30, 2020 CNY (¥) | Nov. 30, 2020 USD ($) | Nov. 30, 2020 CNY (¥) | Dec. 31, 2021 USD ($) item shares | Dec. 31, 2021 CNY (¥) item shares | Dec. 31, 2021 JPY (¥) item shares | Dec. 31, 2020 USD ($) item shares | Dec. 31, 2020 CNY (¥) item shares | Dec. 31, 2020 JPY (¥) item shares | Dec. 31, 2020 BRL (R$) item shares | Dec. 31, 2019 USD ($) item shares | Dec. 31, 2019 CNY (¥) item shares | Dec. 31, 2019 JPY (¥) item shares | Dec. 31, 2019 ZAR (R) item shares | Dec. 31, 2018 | Dec. 31, 2021 CNY (¥) | Sep. 30, 2021 | Dec. 31, 2020 CNY (¥) | Dec. 31, 2019 CNY (¥) | |
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Amount due from related party | $ 73,042,000 | $ 5,834,000 | ||||||||||||||||||
Trade receivable from affiliate | 5,517,000 | |||||||||||||||||||
Amounts due to subsidiaries, net | $ 143,000 | $ 314,000 | ||||||||||||||||||
Horus and Recursos | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Ownership percentage | 49% | 49% | ||||||||||||||||||
RE Crimson Holdings LLC | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Ownership percentage | 20% | |||||||||||||||||||
RSUs | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Granted (in shares) | shares | 2,161,098 | 2,161,098 | 2,161,098 | 1,105,640 | 1,105,640 | 1,105,640 | 1,105,640 | 706,637 | 706,637 | 706,637 | 706,637 | |||||||||
Horus and Recursos | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Amount due from related party | $ 73,042,000 | |||||||||||||||||||
Various affiliates | Horus and Recursos | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Ownership percentage | 20% | 20% | ||||||||||||||||||
Salgueiro I Renewable Energy S.A | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Amount due from related party | $ 2,580,000 | |||||||||||||||||||
Revenue from sale of solar products | $ 105,000 | $ 11,636,000 | ||||||||||||||||||
Percentage of ownership after sale transaction | 20% | 20% | 20% | |||||||||||||||||
Salgueiro I Renewable Energy S.A | Salgueiro I Renewable Energy S.A | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Ownership percentage | 20% | 20% | ||||||||||||||||||
Salgueiro II Renewable Energy S.A. | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Amount due from related party | $ 266,000 | |||||||||||||||||||
Revenue from sale of solar products | $ 105,000 | 9,996,000 | ||||||||||||||||||
Percentage of ownership after sale transaction | 20% | 20% | 20% | |||||||||||||||||
Salgueiro II Renewable Energy S.A. | Salgueiro II Renewable Energy S.A. | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Ownership percentage | 20% | 20% | ||||||||||||||||||
Jaba 4 Energias Renovveis S.A. | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Revenue from sale of solar products | $ 3,210,000 | 3,696,000 | ||||||||||||||||||
Percentage of ownership after sale transaction | 20% | 20% | 20% | |||||||||||||||||
Salgueiro III Renewable Energy S.A. | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Revenue from sale of solar products | $ 114,000 | 9,403,000 | ||||||||||||||||||
Percentage of ownership after sale transaction | 20% | 20% | 20% | |||||||||||||||||
Jaiba 3 Renewable Energy S.A. | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Revenue from sale of solar products | $ 834,000 | 5,971,000 | ||||||||||||||||||
Percentage of ownership after sale transaction | 20% | 20% | 20% | |||||||||||||||||
Jaiba 9 Renewable Energy S.A. | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Revenue from sale of solar products | $ 3,046,000 | $ 1,372,000 | ||||||||||||||||||
Percentage of ownership after sale transaction | 20% | 20% | 20% | |||||||||||||||||
ET Solutions South Africa 1 Pty | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Revenue from sale of solar products | $ 40,970,000 | R 586,832 | ||||||||||||||||||
Percentage of ownership after sale transaction | 49% | 49% | 49% | 49% | ||||||||||||||||
Canadian Solar Infrastructure Fund, Inc | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Number of solar power plants sold | item | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 3 | 3 | 3 | 3 | |||||||||
Percent of units purchased | 14.64% | 14.64% | 14.64% | 14.64% | 14.64% | 14.64% | 14.64% | 14.64% | ||||||||||||
Canadian Solar Infrastructure Fund, Inc | Asset management service | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Revenue from providing development services | $ 7,541,000 | ¥ 829,053 | $ 3,723,000 | ¥ 394,506 | ¥ 281,094 | |||||||||||||||
Canadian Solar Infrastructure Fund, Inc | O & M Service | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Revenue from providing development services | 9,195,000 | 981,161 | 7,564,000 | 805,021 | $ 2,052,000 | 223,598 | ||||||||||||||
Canadian Solar Infrastructure Fund, Inc | Revenue | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Revenue from sale of solar products | 282,133,000 | ¥ 30,601,181 | $ 8,392,000 | ¥ 888,000 | 53,874,000 | ¥ 5,889,000 | ||||||||||||||
Revenue from providing development services | $ 2,573 | |||||||||||||||||||
Suzhou iSilver Materials Co | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Percent of units purchased | 14.63% | 14.63% | 14.63% | 14.63% | ||||||||||||||||
Purchase from related party | $ 24,301,000 | ¥ 168,032,000 | $ 50,359,000 | ¥ 350,590,000 | ||||||||||||||||
Suzhou Kzone Equipment Technology Co., Ltd | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Percent of units purchased | 32% | 32% | 32% | 32% | 32% | |||||||||||||||
Purchase from related party | $ 1,048,000 | ¥ 7,381,000 | $ 8,787,000 | ¥ 61,174,000 | ||||||||||||||||
Dr. Shawn Qu | RSUs | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Granted (in shares) | shares | 26,073 | 26,073 | 26,073 | 26,073 | 26,691 | 26,691 | 26,691 | 26,691 | ||||||||||||
Dr. Shawn Qu | Chinese Commercial Banks | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Maximum borrowing capacity | 1,882,000 | $ 20,648,000 | $ 203,549,000 | ¥ 12,000 | ¥ 135,000,000 | ¥ 1,420,000 | ||||||||||||||
Amounts drawn down | $ 0 | $ 0 | $ 82,937,000 | |||||||||||||||||
Luoyang Jiwa New Material Technology Co., Ltd [Member] | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Percent of units purchased | 20% | 20% | 20% | 20% | 20% | 20% | 20% | 20% | 20% | 20% | 20% | |||||||||
Purchase from related party | $ 2,995,000 | ¥ 19,378,000 | $ 4,545,000 | ¥ 31,388,000 | $ 2,584,000 | ¥ 18,124,000 | ||||||||||||||
Lavras Solar Holding S.A | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Purchase cost incurred from related party | $ 974,000 | R$ 5061 | ||||||||||||||||||
Lavras Solar Holding S.A | Lavras Solar Holding S.A | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Ownership percentage | 20% | 20% | ||||||||||||||||||
Horus Solar S.A. De Capital Variable | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Shareholder loans due from related parties | 46,672,000 | |||||||||||||||||||
Recourses Solares PV De Mexico II S.A. De Capital Variable | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Shareholder loans due from related parties | 20,712,000 | |||||||||||||||||||
Francisco SA I Renewable Energy S.A. | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Amount due from related party | 1,676,000 | |||||||||||||||||||
Revenue from sale of solar products | $ 7,170,000 | |||||||||||||||||||
Percentage of ownership after sale transaction | 20% | 20% | 20% | |||||||||||||||||
Francisco SA I Renewable Energy S.A. | Francisco SA I Renewable Energy S.A. | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Ownership percentage | 20% | 20% | ||||||||||||||||||
Francisco SA II Renewable Energy S.A. | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Amount due from related party | $ 530,000 | |||||||||||||||||||
Revenue from sale of solar products | $ 7,592,000 | |||||||||||||||||||
Percentage of ownership after sale transaction | 20% | 20% | 20% | |||||||||||||||||
Francisco SA II Renewable Energy S.A. | Francisco SA II Renewable Energy S.A. | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Ownership percentage | 20% | 20% | ||||||||||||||||||
Francisco SA III Renewable Energy S.A. | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Revenue from sale of solar products | $ 8,121,000 | |||||||||||||||||||
Percentage of ownership after sale transaction | 20% | 20% | 20% | |||||||||||||||||
Lavras I Solar Renewable Energy S.A. | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Revenue from sale of solar products | $ 5,707,000 | |||||||||||||||||||
Percentage of ownership after sale transaction | 20% | 20% | 20% | 20% | ||||||||||||||||
Lavras II Solar Renewable Energy S.A. | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Revenue from sale of solar products | 5,842,000 | |||||||||||||||||||
Percentage of ownership after sale transaction | 20% | 20% | 20% | 20% | ||||||||||||||||
Lavras III Solar Renewable Energy S.A. | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Revenue from sale of solar products | 6,049,000 | |||||||||||||||||||
Percentage of ownership after sale transaction | 20% | 20% | 20% | 20% | ||||||||||||||||
Lavras IV Solar Renewable Energy S.A. | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Revenue from sale of solar products | $ 6,233,000 | |||||||||||||||||||
Percentage of ownership after sale transaction | 20% | 20% | 20% | |||||||||||||||||
Lavras V Solar Renewable Energy S.A. | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Revenue from sale of solar products | $ 6,233,000 | |||||||||||||||||||
Percentage of ownership after sale transaction | 20% | 20% | 20% | |||||||||||||||||
Sonoran West Solar Holdings, LLC | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Revenue from sale of solar products | $ 12,822,000 | |||||||||||||||||||
Percentage of ownership after sale transaction | 20% | 20% | 20% | |||||||||||||||||
Sonoran West Solar Holdings 2, LLC | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Percentage of ownership after sale transaction | 20% | 20% | 20% | |||||||||||||||||
Sonoran West Solar Holdings 2, LLC | RE Crimson Holdings LLC | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Revenue from sale of solar products | $ 6,955,000 | |||||||||||||||||||
Yancheng Jiwa New Material Technology Co., Ltd | ||||||||||||||||||||
RELATED PARTY BALANCES AND TRANSACTIONS | ||||||||||||||||||||
Percent of units purchased | 20% | 20% | 20% | |||||||||||||||||
Purchase from related party | $ 1,688,000 | ¥ 10,831,000 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Commitments (Details) - Property, plant and equipment $ in Thousands | Dec. 31, 2021 USD ($) |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Commitments | $ 167,871 |
2022 | 67,448 |
2023 | 49,475 |
2024 | 50,948 |
Total | $ 167,871 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Contingencies (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||
Jan. 21, 2015 | Nov. 30, 2012 | Dec. 31, 2021 | Nov. 30, 2021 | Oct. 31, 2021 | Sep. 30, 2021 | Aug. 31, 2021 | Jul. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Nov. 30, 2020 | Oct. 31, 2020 | Aug. 31, 2020 | Jul. 31, 2020 | May 31, 2020 | Apr. 30, 2020 | Dec. 31, 2019 | Aug. 31, 2019 | Jul. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Feb. 28, 2019 | Oct. 31, 2018 | Sep. 30, 2018 | Jul. 31, 2018 | Jun. 30, 2018 | Oct. 31, 2017 | Sep. 30, 2017 | Jul. 31, 2017 | Jul. 31, 2016 | Jun. 30, 2016 | May 31, 2016 | Jul. 31, 2015 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Solar 1 | ||||||||||||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||||||||||||
Cash deposit rate for anti-dumping duty on CSPV cells imported from China (as a percent) | 13.94% | |||||||||||||||||||||||||||||||||||
Cash deposit rate for countervailing duty on CSPV cells imported from China (as a percent) | 15.24% | |||||||||||||||||||||||||||||||||||
First administrative review of Solar 1 | ||||||||||||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||||||||||||
Cash deposit rate for anti-dumping duty on CSPV cells imported from China (as a percent) | 9.67% | |||||||||||||||||||||||||||||||||||
Cash deposit rate for countervailing duty on CSPV cells imported from China (as a percent) | 20.94% | |||||||||||||||||||||||||||||||||||
Second administrative review of Solar 1 | ||||||||||||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||||||||||||
Cash deposit rate for anti-dumping duty on CSPV cells imported from China (as a percent) | 0% | 3.96% | 3.96% | 8.52% | 9.67% | |||||||||||||||||||||||||||||||
Cash deposit rate for countervailing duty on CSPV cells imported from China (as a percent) | 20.94% | |||||||||||||||||||||||||||||||||||
Third administrative review of Solar 1 | ||||||||||||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||||||||||||
Cash deposit rate for anti-dumping duty on CSPV cells imported from China (as a percent) | 0% | 3.19% | 3.19% | 4.12% | 13.07% | 8.52% | ||||||||||||||||||||||||||||||
Cash deposit rate for countervailing duty on CSPV cells imported from China (as a percent) | 7.36% | 18.16% | 18.16% | 20.94% | ||||||||||||||||||||||||||||||||
Fourth administrative review of Solar 1 | ||||||||||||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||||||||||||
Cash deposit rate for anti-dumping duty on CSPV cells imported from China (as a percent) | 13.07% | |||||||||||||||||||||||||||||||||||
Cash deposit rate for countervailing duty on CSPV cells imported from China (as a percent) | 11.59% | 18.16% | 5.02% | |||||||||||||||||||||||||||||||||
Fifth administrative review of Solar 1 | ||||||||||||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||||||||||||
Cash deposit rate for anti-dumping duty on CSPV cells imported from China (as a percent) | 4.06% | 3.30% | 13.07% | |||||||||||||||||||||||||||||||||
Cash deposit rate for countervailing duty on CSPV cells imported from China (as a percent) | 9.70% | 9.70% | 11.59% | |||||||||||||||||||||||||||||||||
Sixth administrative review of Solar 1 | ||||||||||||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||||||||||||
Cash deposit rate for anti-dumping duty on CSPV cells imported from China (as a percent) | 95.50% | 13.07% | 68.93% | 68.93% | ||||||||||||||||||||||||||||||||
Cash deposit rate for countervailing duty on CSPV cells imported from China (as a percent) | 11.97% | 12.67% | 9.70% | 11.97% | ||||||||||||||||||||||||||||||||
Seventh administrative review of Solar 1 | ||||||||||||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||||||||||||
Cash deposit rate for anti-dumping duty on CSPV cells imported from China (as a percent) | 0% | 95.50% | ||||||||||||||||||||||||||||||||||
Cash deposit rate for countervailing duty on CSPV cells imported from China (as a percent) | 19.28% | 11.97% | ||||||||||||||||||||||||||||||||||
Solar 2 | ||||||||||||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||||||||||||
Period of sunset reviews | 5 years | |||||||||||||||||||||||||||||||||||
Cash deposit rate for anti-dumping duty on CSPV cells imported from China (as a percent) | 30.06% | 30.06% | 30.06% | 30.06% | 30.06% | 30.06% | ||||||||||||||||||||||||||||||
Cash deposit rate for countervailing duty on CSPV cells imported from China (as a percent) | 38.43% | 33.58% | 33.58% | 33.58% | 33.58% | 38.43% | 33.58% | 33.58% | ||||||||||||||||||||||||||||
Duty rate for anti-dumping duty on CSPV cells imported from Taiwan (as a percent) | 2.57% | 4.39% | 1.33% | |||||||||||||||||||||||||||||||||
Solar 2 | Minimum | ||||||||||||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||||||||||||
Cash deposit rate for anti-dumping duty on CSPV cells imported from China (as a percent) | 3.56% | |||||||||||||||||||||||||||||||||||
Duty rate for anti-dumping duty on CSPV cells imported from Taiwan (as a percent) | 1.52% | |||||||||||||||||||||||||||||||||||
Solar 2 | Maximum | ||||||||||||||||||||||||||||||||||||
Contingencies | ||||||||||||||||||||||||||||||||||||
Duty rate for anti-dumping duty on CSPV cells imported from Taiwan (as a percent) | 3.78% | 4.20% |
SEGMENT INFORMATION (Narrative)
SEGMENT INFORMATION (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2021 segment | |
SEGMENT INFORMATION | |
Number of Reportable Segments | 2 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 USD ($) segment | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
SEGMENT INFORMATION | |||
Number of principal reportable business segments | segment | 2 | ||
Revenues and gross profit generated from each segment | |||
Net revenues | $ 5,277,169 | $ 3,476,495 | $ 3,200,583 |
Cost of revenues | 4,367,857 | 2,786,581 | 2,482,086 |
Gross profit | 909,312 | 689,914 | 718,497 |
Income from operations | 190,381 | 220,430 | 258,879 |
Operating segment | CSI Solar Segment | |||
Revenues and gross profit generated from each segment | |||
Net revenues | 4,371,603 | 3,105,044 | 2,591,154 |
Cost of revenues | 3,689,126 | 2,496,153 | 1,977,502 |
Gross profit | 682,477 | 608,891 | 613,652 |
Income from operations | 74,132 | 253,105 | 267,642 |
Operating segment | Global Energy Segment | |||
Revenues and gross profit generated from each segment | |||
Net revenues | 1,124,083 | 726,167 | 718,735 |
Cost of revenues | 930,099 | 577,052 | 604,856 |
Gross profit | 193,984 | 149,115 | 113,879 |
Income from operations | 97,179 | 53,414 | 18,795 |
Elimination and unallocated items | |||
Revenues and gross profit generated from each segment | |||
Net revenues | (218,517) | (354,716) | (109,306) |
Cost of revenues | (251,368) | (286,624) | (100,272) |
Gross profit | 32,851 | (68,092) | (9,034) |
Income from operations | $ 19,070 | $ (86,089) | $ (27,558) |
SEGMENT INFORMATION - Different
SEGMENT INFORMATION - Different geographic locations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | $ 5,277,169 | $ 3,476,495 | $ 3,200,583 |
Total long-lived assets | 2,033,397 | 1,790,538 | |
The Americas | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 2,279,594 | 1,221,105 | 1,402,041 |
United States | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 1,590,573 | 696,101 | 852,231 |
Total long-lived assets | 65,700 | 64,009 | |
Brazil | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 442,603 | 284,478 | 395,303 |
Total long-lived assets | 63,716 | 16,109 | |
Canada | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 30,792 | 100,284 | 30,330 |
Total long-lived assets | 7,050 | 8,898 | |
Mexico | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 139,611 | 118,846 | 94,446 |
Total long-lived assets | 68,331 | 12,388 | |
Others | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 76,015 | 21,396 | 29,731 |
Asia and other regions | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 2,139,070 | 1,620,840 | 1,018,083 |
Japan | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 509,233 | 560,701 | 372,687 |
Total long-lived assets | 191,680 | 204,515 | |
PRC | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 1,207,003 | 504,656 | 317,077 |
Total long-lived assets | 1,230,613 | 1,002,409 | |
Korea | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 3,413 | 25,896 | 72,552 |
India | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 142,300 | 61,141 | 70,893 |
U.A.E | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 6,168 | 53,981 | 43,311 |
Vietnam | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 19,956 | 289,621 | 39,268 |
Thailand | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 59,451 | 6,108 | 12,753 |
Total long-lived assets | 266,870 | 295,240 | |
Cyprus | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 51,038 | 13,265 | 2,175 |
Pakistan | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 48,838 | 15,417 | 10,581 |
Others | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 91,670 | 90,054 | 76,786 |
Europe | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 858,505 | 634,550 | 780,459 |
Australia | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 165,772 | 120,403 | 313,167 |
Total long-lived assets | 15,024 | 76,330 | |
Germany | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 231,995 | 119,035 | 109,119 |
South Africa | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 90,761 | 49,375 | 93,911 |
Spain | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 100,658 | 138,972 | 78,228 |
Netherlands | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 104,715 | 96,372 | 68,770 |
Britain | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 7,749 | 8,842 | 33,158 |
Czech | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 34,604 | 16,144 | 17,717 |
France | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 25,980 | 29,974 | 13,516 |
Argentina | |||
Revenues generated by geographic location of customers' headquarter | |||
Total long-lived assets | 68,508 | 64,208 | |
Others | |||
Revenues generated by geographic location of customers' headquarter | |||
Net revenues | 96,271 | 55,433 | $ 52,873 |
Others | |||
Revenues generated by geographic location of customers' headquarter | |||
Total long-lived assets | $ 55,905 | $ 46,432 |
SEGMENT INFORMATION - Each prod
SEGMENT INFORMATION - Each product or service (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues generated from each product | |||
Total net revenues | $ 5,277,169 | $ 3,476,495 | $ 3,200,583 |
CSI Solar Segment | Solar modules | |||
Revenues generated from each product | |||
Total net revenues | 3,328,301 | 2,348,724 | 2,012,059 |
CSI Solar Segment | Solar system kits | |||
Revenues generated from each product | |||
Total net revenues | 302,133 | 157,656 | 116,449 |
CSI Solar Segment | Battery storage solutions | |||
Revenues generated from each product | |||
Total net revenues | 222,655 | 7,899 | |
CSI Solar Segment | China Energy or Engineering, Procurement and Construction (includes Electricity Sales) | |||
Revenues generated from each product | |||
Total net revenues | 178,830 | 175,388 | 58,096 |
CSI Solar Segment | Others | |||
Revenues generated from each product | |||
Total net revenues | 121,167 | 60,661 | 295,244 |
Global Energy Segment | Solar and battery storage power projects | |||
Revenues generated from each product | |||
Total net revenues | 1,064,178 | 654,827 | 652,050 |
Global Energy Segment | O&M and asset management services | |||
Revenues generated from each product | |||
Total net revenues | 35,334 | 26,386 | 19,750 |
Global Energy Segment | Others (includes electricity sales) | |||
Revenues generated from each product | |||
Total net revenues | $ 24,571 | $ 44,954 | $ 46,935 |
MAJOR CUSTOMERS (Details)
MAJOR CUSTOMERS (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 USD ($) item | Dec. 31, 2020 USD ($) item | |
Major Customers | ||
Number of customers with the largest receivable balances | item | 3 | 3 |
Accounts receivable | Accounts receivable balances | Customer one | ||
Major Customers | ||
Concentration risk (as a percent) | 7% | 7% |
Accounts receivable | $ | $ 42,812 | $ 27,014 |
Accounts receivable | Accounts receivable balances | Customer two | ||
Major Customers | ||
Concentration risk (as a percent) | 4% | 3% |
Accounts receivable | Accounts receivable balances | Customer three | ||
Major Customers | ||
Concentration risk (as a percent) | 4% | 3% |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Employer's contribution (as a percent) | 16% | ||
Defined contributions schemes expense | $ 14,362 | $ 8,064 | $ 11,738 |
Percentage of applicable salaries contributed by the employer for housing funds | 8% | ||
Amount of contribution by the employer for medical insurance benefits, housing funds, unemployment and other statutory benefits | $ 13,584 | $ 11,486 | $ 11,409 |
Minimum | |||
Percentage of applicable salaries contributed by the employer for medical insurance benefits | 6% | ||
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 | 36 Months Ended | ||
Sep. 30, 2010 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | |
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% | ||||
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 | ||||
Compensation cost | $ 0 | $ 0 | $ 0 | ||
Options | Employees | |||||
SHARE-BASED COMPENSATION | |||||
Option exercised | 0 | ||||
Total intrinsic value of options exercised (in dollars) | $ 893 | $ 1,422 | |||
Options outstanding | 26,291 | 26,291 | |||
Weighted average exercise price of options outstanding (in dollars per share) | $ 9.33 | $ 9.33 | |||
Weighted average remaining contract terms of options outstanding (in years) | 1 year 4 months 24 days | ||||
Intrinsic value of outstanding options (in dollars) | $ 577 | $ 577 |
SHARE-BASED COMPENSATION - RSUs
SHARE-BASED COMPENSATION - RSUs to Employees (Details) - RSUs - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SHARE-BASED COMPENSATION | |||
Shares granted to employees | 2,161,098 | 1,105,640 | 706,637 |
Weighted average grant date fair value | $ 26.10 | ||
Number of unvested awards outstanding | 3,335,303 | 1,888,753 | |
Total compensation cost at the date of grant | $ 55,822 | $ 24,918 | $ 12,179 |
Total recognized compensation cost | 8,808 | $ 12,350 | $ 10,682 |
Total unrecognized share-based compensation costs | $ 22,002 | ||
Weighted-average period of recognition of compensation expense | 2 years 4 months 6 days | ||
Number of Shares | |||
Unvested at the beginning of the period (in shares) | 1,888,753 | ||
Granted (in shares) | 2,161,098 | 1,105,640 | 706,637 |
Vested (in shares) | (562,376) | ||
Forfeited (in shares) | (152,172) | ||
Unvested at the end of the period (in shares) | 3,335,303 | 1,888,753 | |
Weighted Average Grant-Date Fair Value | |||
Unvested at the beginning of the period (in dollars per share) | $ 19.78 | ||
Granted (in dollars per share) | 26.10 | ||
Vested (in dollars per share) | 17.11 | ||
Forfeited (in dollars per share) | 22.04 | ||
Unvested at the end of the period (in dollars per share) | $ 24.23 | $ 19.78 | |
Total fair value of shares vested | $ 21,628 | $ 14,420 | $ 10,733 |
Employees | |||
SHARE-BASED COMPENSATION | |||
Shares granted to employees | 2,096,000 | ||
Vesting percentage | 50% | ||
Weighted average grant date fair value | $ 25.69 | ||
Number of unvested awards outstanding | 2,076,000 | ||
Number of Shares | |||
Granted (in shares) | 2,096,000 | ||
Unvested at the end of the period (in shares) | 2,076,000 | ||
Weighted Average Grant-Date Fair Value | |||
Granted (in dollars per share) | $ 25.69 | ||
Tranche one | Employees | |||
SHARE-BASED COMPENSATION | |||
Vesting percentage | 25% | ||
Tranche two | Employees | |||
SHARE-BASED COMPENSATION | |||
Vesting percentage | 25% | ||
Minimum | |||
SHARE-BASED COMPENSATION | |||
Grant period (in years) | 1 year | ||
Maximum | |||
SHARE-BASED COMPENSATION | |||
Grant period (in years) | 4 years |
Financial Statement Schedule I
Financial Statement Schedule I (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Additional Information - Financial Statement Schedule I | |
Restricted net assets of the entity's consolidated and unconsolidated subsidiaries not available for distribution | $ 602,460 |
Threshold percentage of restricted net assets of the entity's consolidated and unconsolidated subsidiaries | 25% |
Financial Statement Schedule _2
Financial Statement Schedule I - BALANCE SHEETS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 869,831 | $ 1,178,752 |
Amounts due from subsidiaries, net | 73,042 | 5,834 |
Derivative assets | 7,286 | 23,351 |
Prepaid expenses and other current assets | 434,177 | 353,781 |
Total current assets | 4,771,827 | 4,185,822 |
Deferred tax assets, net | 236,503 | 170,656 |
Other non-current assets | 174,453 | 184,952 |
TOTAL ASSETS | 7,388,342 | 6,536,854 |
Current liabilities: | ||
Short-term borrowings, including long-term borrowings - current portion | 1,271,215 | 1,202,285 |
Amounts due to subsidiaries, net | 143 | 314 |
Other current liabilities | 242,783 | 237,316 |
Total current liabilities | 4,038,148 | 3,588,355 |
Convertible notes | 224,675 | 223,214 |
Deferred tax liabilities | 48,150 | 49,080 |
Liability for uncertain tax positions | 7,448 | 14,729 |
TOTAL LIABILITIES | 5,261,904 | 4,644,069 |
Equity: | ||
Common shares - no par value: unlimited authorized shares, 59,820,384 and 64,022,678 shares issued and outstanding at December 31, 2020 and 2021, respectively | 835,543 | 687,033 |
Additional paid-in capital | (19,428) | (28,236) |
Retained earnings | 1,035,552 | 940,304 |
Accumulated other comprehensive loss | (50,584) | (28,679) |
Total Canadian Solar Inc. shareholders' equity | 1,801,083 | 1,570,422 |
TOTAL LIABILITIES AND EQUITY | 7,388,342 | 6,536,854 |
Parent Company | Reportable Legal Entities [Member] | ||
Current assets: | ||
Cash and cash equivalents | 27,432 | 33,709 |
Restricted cash | 1,316 | |
Amounts due from subsidiaries, net | 288,226 | |
Derivative assets | 521 | 1,111 |
Prepaid expenses and other current assets | 5,318 | 22,672 |
Total current assets | 33,271 | 347,034 |
Investment in subsidiaries | 1,992,658 | 1,525,951 |
Investments in affiliates | 10,755 | 5,322 |
Deferred tax assets, net | 1,946 | 21,358 |
Other non-current assets | 45,213 | 40,456 |
TOTAL ASSETS | 2,083,843 | 1,940,121 |
Current liabilities: | ||
Short-term borrowings, including long-term borrowings - current portion | 80,000 | |
Amounts due to subsidiaries, net | 43,415 | |
Other current liabilities | 5,676 | 32,969 |
Total current liabilities | 49,091 | 112,969 |
Convertible notes | 224,675 | 223,214 |
Deferred tax liabilities | 1,562 | 20,169 |
Liability for uncertain tax positions | 7,432 | 13,347 |
TOTAL LIABILITIES | 282,760 | 369,699 |
Equity: | ||
Common shares - no par value: unlimited authorized shares, 59,820,384 and 64,022,678 shares issued and outstanding at December 31, 2020 and 2021, respectively | 835,543 | 687,033 |
Additional paid-in capital | (19,428) | (28,236) |
Retained earnings | 1,035,552 | 940,304 |
Accumulated other comprehensive loss | (50,584) | (28,679) |
Total Canadian Solar Inc. shareholders' equity | 1,801,083 | 1,570,422 |
TOTAL LIABILITIES AND EQUITY | $ 2,083,843 | $ 1,940,121 |
Financial Statement Schedule _3
Financial Statement Schedule I - BALANCE SHEETS Additional Information (Details) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Condensed Financial Statements | ||
Common share, par value (in dollars per share) | $ 0 | $ 0 |
Common shares, shares issued (in shares) | 64,022,678 | 59,820,384 |
Common shares, shares outstanding (in shares) | 64,022,678 | 59,820,384 |
Reportable Legal Entities [Member] | Parent Company | ||
Condensed Financial Statements | ||
Common share, par value (in dollars per share) | $ 0 | $ 0 |
Common shares, shares issued (in shares) | 64,022,678 | 59,820,384 |
Common shares, shares outstanding (in shares) | 64,022,678 | 59,820,384 |
Financial Statement Schedule _4
Financial Statement Schedule I - STATEMENTS OF OPERATIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Financial Statements | |||
Net revenues | $ 5,277,169 | $ 3,476,495 | $ 3,200,583 |
Cost of revenues | 4,367,857 | 2,786,581 | 2,482,086 |
Gross profit | 909,312 | 689,914 | 718,497 |
Operating expenses: | |||
General and administrative expenses | 308,942 | 225,597 | 242,783 |
Research and development expenses | 58,407 | 45,167 | 47,045 |
Other operating income, net | (47,068) | (25,523) | (10,536) |
Total operating expenses | 718,931 | 469,484 | 459,618 |
Loss from operations | 190,381 | 220,430 | 258,879 |
Other income (expenses): | |||
Interest expense | (58,153) | (71,874) | (81,326) |
Interest income | 11,051 | 9,306 | 12,039 |
Gain (loss) on change in fair value of derivatives, net | 23,785 | 50,001 | (22,218) |
Foreign exchange gain (loss) | (47,234) | (64,820) | 10,370 |
Investment (loss) gain | 18,634 | (8,559) | 1,929 |
Other income (expenses), net: | (51,917) | (85,946) | (79,206) |
Income (loss) before income taxes and equity in earnings of subsidiaries | 138,464 | 134,484 | 179,673 |
Income tax benefit (expense) | (35,844) | 1,983 | (42,066) |
Net income attributable to Canadian Solar Inc. | 95,248 | 146,703 | 171,585 |
Reportable Legal Entities [Member] | Parent Company | |||
Condensed Financial Statements | |||
Net revenues | 341 | 2,170 | 4,351 |
Cost of revenues | 4,188 | ||
Gross profit | 341 | 2,170 | 163 |
Operating expenses: | |||
Selling and distribution expenses | 766 | 2,174 | 1,727 |
General and administrative expenses | 9,177 | 49,688 | 29,093 |
Research and development expenses | 182 | 692 | 462 |
Other operating income, net | (282) | ||
Total operating expenses | 9,843 | 52,554 | 31,282 |
Loss from operations | (9,502) | (50,384) | (31,119) |
Other income (expenses): | |||
Interest expense | (19,677) | (9,628) | (3,005) |
Interest income | 20,249 | 30,536 | 25,272 |
Gain (loss) on change in fair value of derivatives, net | 4,043 | 25,341 | (5,193) |
Foreign exchange gain (loss) | (3,674) | 13,768 | (11,318) |
Investment (loss) gain | (116,879) | ||
Other income (expenses), net: | 941 | 60,017 | (111,123) |
Income (loss) before income taxes and equity in earnings of subsidiaries | (8,561) | 9,633 | (142,242) |
Income tax benefit (expense) | 2,424 | (34,223) | 5,230 |
Equity in earnings of subsidiaries | 101,385 | 171,293 | 308,597 |
Net income attributable to Canadian Solar Inc. | $ 95,248 | $ 146,703 | $ 171,585 |
Financial Statement Schedule _5
Financial Statement Schedule I - STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Financial Statements | |||
Net income | $ 109,876,000 | $ 147,246,000 | $ 166,555,000 |
Other comprehensive income (loss) (net of tax of nil) | (26,296,000) | 76,188,000 | 319,000 |
Comprehensive income attributable to Canadian Solar Inc. | 73,343,000 | 227,631,000 | 172,127,000 |
Other comprehensive income tax | 0 | 0 | 0 |
Reportable Legal Entities [Member] | Parent Company | |||
Condensed Financial Statements | |||
Net income | 95,248,000 | 146,703,000 | 171,585,000 |
Other comprehensive income (loss) (net of tax of nil) | (21,905,000) | 80,928,000 | 542,000 |
Comprehensive income attributable to Canadian Solar Inc. | 73,343,000 | 227,631,000 | 172,127,000 |
Other comprehensive income tax | $ 0 | $ 0 | $ 0 |
Financial Statement Schedule _6
Financial Statement Schedule I - STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities: | |||
Net income | $ 109,876 | $ 147,246 | $ 166,555 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 282,769 | 209,118 | 159,723 |
Accretion of convertible notes | 1,461 | 388 | |
Loss (gain) on disposal of property, plant and equipment | 83 | (253) | 1,227 |
Loss (gain) on change in fair value of derivatives | (23,785) | (50,001) | 22,218 |
Allowance for credit losses | 7,615 | 9,874 | 1,250 |
Share-based compensation | 8,808 | 12,350 | 10,682 |
Changes in operating assets and liabilities: | |||
Accounts receivable trade | (284,785) | 65,379 | 51,670 |
Amounts due from subsidiaries | (68,912) | 26,828 | (17,347) |
Prepaid expenses and other current assets | (85,754) | (72,188) | 33,283 |
Other non-current assets | 20,357 | (11,913) | (24,037) |
Accounts payable | 11,023 | (89,180) | 209,175 |
Amounts due to subsidiaries | (171) | (9,773) | (5,798) |
Liability for uncertain tax positions | (7,281) | (623) | (4,775) |
Net deferred tax assets | (67,386) | (21,439) | (12,455) |
Net settlement of derivatives | 31,886 | 33,054 | (27,012) |
Net cash provided by (used in) operating activities | (408,254) | (120,541) | 600,111 |
Investing activities: | |||
Net cash used in investing activities | (429,570) | (319,662) | (294,102) |
Financing activities: | |||
Repayment of short-term borrowings | (1,879,884) | (1,561,597) | (1,649,721) |
Net proceeds from issuance of common shares | 148,510 | ||
Proceeds from changes in ownership interests in subsidiaries without change of control | 10,003 | 261,332 | 11,488 |
Net proceeds from issuance of convertible notes | (127,500) | ||
Payments for repurchase of common shares | (5,963) | (11,845) | |
Proceeds from exercise of stock options | 1,035 | 875 | |
Net cash provided by (used in) financing activities | 614,071 | 823,501 | (34,614) |
Effect of exchange rate changes | 18,320 | 50,997 | (6,965) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (205,433) | 434,295 | 264,430 |
Cash, cash equivalents and restricted cash at the beginning of the year | 1,639,715 | 1,205,420 | 940,990 |
Cash, cash equivalents and restricted cash at the end of the year | 1,434,282 | 1,639,715 | 1,205,420 |
Supplemental disclosure of cash flow information: | |||
Interest paid (net of amounts capitalized) | 71,006 | 78,747 | 85,362 |
Parent Company | Reportable Legal Entities [Member] | |||
Operating activities: | |||
Net income | 95,248 | 146,703 | 171,585 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 150 | 156 | 154 |
Accretion of convertible notes | 1,461 | 388 | |
Loss on disposal of subsidiaries | 116,879 | ||
Loss (gain) on change in fair value of derivatives | (4,043) | (25,341) | 5,193 |
Allowance for credit losses | 357 | (83) | |
Equity in earnings of subsidiaries | (101,385) | (171,293) | (308,597) |
Share-based compensation | 8,808 | 12,350 | 10,682 |
Changes in operating assets and liabilities: | |||
Amounts due from subsidiaries | (206,892) | 287,865 | (43,630) |
Prepaid expenses and other current assets | 17,353 | (13,183) | 17,012 |
Other non-current assets | (4,907) | 28,459 | (1,158) |
Amounts due to subsidiaries | (42,224) | (340,502) | 183,675 |
Other current liabilities | (27,293) | 31,809 | (2,707) |
Liability for uncertain tax positions | (5,915) | 306 | 408 |
Net deferred tax assets | 805 | (468) | (1,292) |
Net settlement of derivatives | 4,633 | 19,517 | (11,125) |
Net cash provided by (used in) operating activities | (264,201) | (22,877) | 136,996 |
Investing activities: | |||
Investments in subsidiaries | (138,456) | (126,487) | (36,146) |
Investments in affiliates | (5,273) | (2,766) | (2,483) |
Funding of loans to subsidiaries | (201,192) | (264,848) | (40,600) |
Repayment of loans from interest receivables | 253,816 | 20,485 | 12,809 |
Net cash used in investing activities | (91,105) | (373,616) | (66,420) |
Financing activities: | |||
Repayment of short-term borrowings | (80,000) | 30,000 | |
Proceeds long-term borrowings | 50,000 | ||
Funding of loans from a subsidiary | 280,000 | ||
Net proceeds from issuance of common shares | 148,510 | ||
Proceeds from changes in ownership interests in subsidiaries without change of control | 224,553 | ||
Net proceeds from issuance of convertible notes | 222,826 | ||
Payments for repurchase of convertible notes | (127,500) | ||
Payments for repurchase of common shares | (5,963) | (11,845) | |
Proceeds from exercise of stock options | 1,035 | 875 | |
Net cash provided by (used in) financing activities | 348,510 | 472,451 | (88,470) |
Effect of exchange rate changes | (797) | (43,246) | 11,110 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (7,593) | 32,712 | (6,784) |
Cash, cash equivalents and restricted cash at the beginning of the year | 35,025 | 2,313 | 9,097 |
Cash, cash equivalents and restricted cash at the end of the year | 27,432 | 35,025 | 2,313 |
Supplemental disclosure of cash flow information: | |||
Interest paid (net of amounts capitalized) | $ 20,272 | $ 7,966 | $ 4,644 |
Appendix 1 - Major Subsidiari_2
Appendix 1 - Major Subsidiaries of CSI (Details) | 12 Months Ended |
Dec. 31, 2021 | |
CSI Cells Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 79.59% |
CSI New Energy Holding Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Canadian Solar Manufacturing (Luoyang) Inc. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Canadian Solar Manufacturing (Changshu) Inc. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
CSI Cells Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Canadian Solar (USA) Inc. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Canadian Solar Japan K.K. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Canadian Solar Solutions Inc. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Canadian Solar EMEA GmbH | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Canadian Solar International Project Holding Limited | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Canadian Solar International Project Holding Limited | 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) | 79.59% |
Canadian Solar O&M (Ontario) Inc. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Suzhou Sanysolar Materials Technology Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Canadian Solar South East Asia Pte., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Canadian Solar Brazil Commerce, Import and Export of Solar Panels Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Canadian Solar Project K.K. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Canadian Solar UK Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Canadian Solar UK Projects Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
CSI Solar Manufacturing (Funing) Co., Ltd . (formerly known as "CSI&GCL Solar Manufacturing (Yancheng) Inc.") | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Changsu Tegu New Material Technology Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Changshu Tlian Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Recurrent Energy, LLC | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Canadian Solar Manufacturing Vietnam Co., Ltd | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Canadian Solar Manufacturing (Thailand) Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Canadian Solar Energy Holding Singapore Pte. Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Canadian Solar Sunenergy (Baotou) Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
CSI Solar New Energy (Suzhou) Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 90% |
Canadian Solar Construction (Australia) Pty Ltd | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Canadian Solar Sunenergy (Jiaxing) Co. Ltd. (formerly known as CSI Modules (Jiaxing) Co., Ltd.) | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
CSI Wafer (LuoYang) Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Technology CSI New Energy (ZheJiang) Co., Ltd [Member] | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Canadian Solar New Energy Holding Company Limited | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Canadian Solar Energy Holding Singapore Pte. Ltd. [Member] | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Canadian Solar Netherlands Cooperative U.A. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Canadian Solar SSES (Canada) Inc. [Member] | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
FieldFare Argentina S.R.L. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Canadian Solar Investment Management Pty Ltd [Member] | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
Canadian Solar Brasil I Fundo De Investimento Em Participacoes [Member] | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
CSI Energy Project Technology (SuZhou) Co., Ltd. [Member] | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
CSI Electricity Sales (JiangSu) Co., Ltd. [Member] | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 100% |
CSI Cells (Yanchang) Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 73.2063% |
CSI Cells (Yanchang) Co., Ltd. | CSI Cells Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 57.13% |
Equity interest held as limited partner | 37.33% |
CSI Cells (Yanchang) 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) | 42.87% |
Interest held as general partner | 0.17% |
CSI Modules (DaFeng) Co., Ltd. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 57.4197% |
CSI Modules (DaFeng) Co., Ltd. | Canadian Solar Manufacturing (Changshu) Inc. | |
Major Subsidiaries of CSI | |
Attributable Equity Interest Held (as a percent) | 46.73% |
Equity interest held as limited partner | 20% |
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) | 53.27% |
Interest held as general partner | 0.067% |
N-2
N-2 | 12 Months Ended |
Dec. 31, 2021 | |
Cover [Abstract] | |
Entity Central Index Key | 0001375877 |
Amendment Flag | true |
Amendment Description | Amendment No. 1 |
Securities Act File Number | 001-33107 |
Document Type | 20-F/A |
Document Registration Statement | false |
Entity Registrant Name | CANADIAN SOLAR INC. |
Entity Address, Address Line One | 545 Speedvale Avenue West |
Entity Address, City or Town | Guelph, Ontario |
Entity Address, Postal Zip Code | N1K 1E6 |
Entity Well-known Seasoned Issuer | Yes |
Entity Emerging Growth Company | false |
Business Contact [Member] | |
Cover [Abstract] | |
Entity Address, Address Line One | 545 Speedvale Avenue West |
Entity Address, City or Town | Guelph, Ontario |
Entity Address, Postal Zip Code | N1K 1E6 |
City Area Code | 1-519 |
Local Phone Number | 837-1881 |
Contact Personnel Name | Huifeng Chang |