Canadian Solar Reports First Quarter 2019 Results

GUELPH,Ontario,May 30,2019 -- Canadian Solar Inc. ("Canadian Solar" or the "Company") (NASDAQ: CSIQ),one of the world's largest solar power companies,today announced its financial results for the first quarter of 2019 ended March 31,2019.

First Quarter 2019 Highlights

Total solar module shipments were 1,575 MW,compared to 1,951 MW in the fourth quarter of 2018 and first quarter 2019 guidance of 1.3 GW to 1.4 GW.

Net revenue was $484.7 million,compared to $901.0million in the fourth quarter of 2018 and firstquarter 2019 guidance of $450 million to $480 million.

Gross margin was 22.2%,compared 28.3% in the fourth quarter 2018,after excluding the benefit of a U.S. countervailing duty (CVD) reversal of $16.1 million in that quarter,and first quarter 2019 guidance of 16.0% to 18.0%.

Net loss attributable to Canadian Solar was $17.2million,or $0.29 per diluted share,compared to net income of $111.6 million,or $1.81 per diluted share,in the fourth quarter of 2018,or net income of $99.5 million,or $1.61 per diluted share,after excluding the CVD reversal of $16.1 million,net of income tax effect,in that quarter.

As of April 30,2019,the Company's portfolio of utility-scale solar power plants in operation was 983.6 MWpwith an estimated total resale value of approximately $1.2 billion.Only the value of the class B shares which the Company holds in its tax equity solar power plant in the U.S. is included in this resale value.

First Quarter 2019 Results

Net revenue in the first quarter of 2019 was $484.7 million,compared to $901.0 million in the fourth quarter of 2018,and $1.42 billion in the first quarter of 2018. The sequential decrease wasprimarily due to the previously disclosed acceleration of certain high profit project sales into 2018 from 2019,an enterprise resource planning (ERP) system upgrade which resulted in 5 days of work stoppage at several manufacturing facilities and the anticipated lower production and sales volumes due to the impact of the Chinese New Year Holiday. The year over year decrease was primarily due to the higher revenue contribution from project sales and higher solar module ASP in the prior period. Firstquarter 2019 guidance was $450 million to $480 million.

Total solar module shipments in the first quarter of 2019 were 1,951 MW in the fourth quarter of 2018 and firstquarter 2019 guidance of 1.3 GWto 1.4 GW. Total solar module shipments in the first quarter of 2019 included 52 MW shipped to the Company's utility-scale solar power projects. Solar module shipments recognized in revenue in the first quarter of 2019 totaled 1,423 MW,compared to 2,076 MW in the fourth quarter of 2018 and 1,765MWin the first quarter of 2018.

Gross profit in the first quarter of 2019 was $107.4 million,compared to $271.3 million in the fourth quarter of 2018 and $143.9 million in the first quarter of 2018. Gross margin in the first quarter of 2019 was 22.2%,compared to 28.3% in the fourth quarter of 2018,after excluding the benefit of a CVD reversal of $16.1 million in that quarter,and 30.1%,including the benefit of the CVD reversal in that quarter,and 10.1% in the first quarter of 2018. Firstquarter 2019 guidance was 16.0% to 18.0%. Gross margin in the first quarter of 2019 was better than expected primarily due to a lower blended module manufacturing cost compared to our previous forecast.

Canadian Solar's MSS business comprises primarily the design,development,manufacture and sale of solar modules,other solar power products and solar system kits. The MSS business also provides engineering,procurement and construction (EPC) and operating and maintenance (O&M) services. Canadian Solar's Energy business comprises primarily the development and sale of solar projects,operating solar power projects and the sale of electricity. The module sales from the Company's MSS business to its Energy business are on terms and conditions similar to sales to third parties.

The Company develops solar power projects worldwide. Where applicable,the Company may apply for and/or be entitled to receive a feed-in tariff (FIT) for its projects. Alternatively,the Company may participate in public or private energy auctions and bidding,which result in long-term power purchase agreements (PPAs). The Company may also sell all or part of the electricity generated from its solar power projects on the merchant power market. Because of the longer lead time (two to four years) to develop solar power projects and bring them to a commercial operation date (COD),the actual gross margin ofa project may deviate from the expected gross margin. The deviation may be caused by,but not limited to,changes in the political and economic conditions in host countries,project specific conditions,price movements of solar modules and other components,EPC services and the capital return requirements of solar asset buyers. In recent years,the Company has sold some solar power projects before COD. We typically refer to these sales as "notice to proceed" or NTP sales. Revenue islower,while gross margin percentage ishigher,in NTP sales compared to COD sales,even if the absolute margin is the same. Results from the Company's Energy business may be lumpy from quarter to quarter,depending on project NTP and COD dates,project sale transaction dates and the profit level of each project.

The following tables provide select financial data for the Company's MSS and Energy Businesses:

Three Months Ended March 31,2019

(in Thousands of US Dollars)

MSS

Energy

Elimination

Total

Net revenue

468,901

31,587

(15,769)

484,719

Cost of revenue

369,664

22,174

(14,558)

377,280

Gross profit

99,237

9,413

(1,211)

107,439

Gross Margin

21.6%

29.8%

7.7%

22.2%

Income (loss) from

operations

20,741

(12,925)

(1,211)

6,605

Three Months Ended

March 31,2019

MSS:

Solar modulesand other solar power products

371,094

Solar system kits

25,076

EPCservices

39,679

O&M services

4,510

Others (materials and components)

12,773

Subtotal

453,132

Energy:

Solar power projects

24,571

Electricity

1,283

Others(EPC and development services)

5,733

Subtotal

31,587

Total net revenue

484,719

Total operating expenses in the first quarter of 2019 were $100.8 million,compared to $134.7million in the fourth quarter of 2018 and $65.7million in the first quarter of 2018.

Selling expenses in the first quarter of 2019 were $37.9 million,compared to $44.4 million in the fourth quarter of 2018 and $42.3 million in the first quarter of 2018. The sequential decrease was primarily due to lower professional service expenses,project transaction fees and shipping and handling costs.

General and administrative expenses in the first quarter of 2019 were $51.4 million,compared to $81.3 million in the fourth quarter of 2018 and $48.8 million in the first quarter of 2018. The sequential decrease was primarily due to a $26.8 million impairment charge related to certain manufacturing assets in the fourth quarter of 2018,decreased professional service expensesand a decrease in bad debt provision.

Research and development expenses in the first quarter of 2019 were $13.2million,compared to $15.4 million in the fourth quarter of 2018and $9.5million in the first quarter of 2018.

Other operating income in the first quarter of 2019 was $1.7million,compared to $6.4 million in the fourth quarter of 2018 and $34.9 million in the first quarter of 2018. Other operating income in the first quarter of 2018 reflects the net gain from the sale of solar power plants in the U.K. and Japan.

Incomefrom operations in the first quarter of 2019 was $6.6 million,compared to $136.6million in the fourth quarter of 2018,and $78.2million in the first quarter of 2018. The fourth quarter of 2018 reflects the previously disclosed acceleration of certain high profit project sales into 2018 from 2019. Operating margin was 1.4% in the first quarter of 2019,compared to 15.2% in the fourth quarter of 2018 and 5.5% in the first quarter of 2018.

Non-cash depreciation and amortization charges in the first quarter of 2019 were $37.6 million,compared to $32.2million in the fourth quarter of 2018and $34.5million in the first quarter of 2018. Non-cash equity compensation expense in the first quarter of 2019 was $2.4million,compared to $2.4million in the fourth quarter of 2018 and $2.1million in the first quarter of 2018.

Interest expense in the first quarter of 2019 was $21.7 million,compared to $23.0million in the fourth quarter of 2018and $29.6 million in the first quarter of 2018.

Interest income in the first quarter of 2019 was $2.0million,compared to $2.2million in the fourth quarter of 2018 and $3.6 million in the first quarter of 2018.

The Company recorded a losson change in fair value of derivatives in the first quarter of 2019 of $1.3million,compared to alossof $7.3 million in the fourth quarter of 2018and a gainof $4.5million in the first quarter of 2018. Foreign exchange loss in the first quarter of 2019was $12.6 million,compared to a gain of $7.3million in the fourth quarter of 2018,and a loss of $8.5million in the first quarter of 2018.

Income tax benefitin the first quarter of 2019 was $7.5 million,compared to income tax expense of $36.7 millionin the fourth quarter of 2018 and income tax expense of $4.1million in the first quarter of 2018.

Netlossattributable to Canadian Solar in the first quarter of 2019 was $17.2million,or $1.81per diluted share,in the fourth quarter of 2018and net income of $43.4million,or $0.72 per diluted share,in the first quarter of 2018.

Financial Condition

The Company had $912.3 millionof cash,cash equivalents and restricted cash as of March 31,compared to $941.0 million as of December 31,2018.

Accounts receivable,net of allowance for doubtful accounts,at the end of the first quarter of 2019 were $388.7 million,compared to $498.2million at the end of the fourth quarter of 2018. Accounts receivable turnover in the first quarter of 2019 was 91days,compared to 46days in thefourth quarter of 2018.

Inventories at the end of the first quarter of 2019were $385.1 million,compared to $262.0 million at the end of the fourth quarter of 2018. Inventory turnover in the first quarter of 2019 was 81days,compared to 44 days in the fourth quarter of 2018.

Accounts and notes payable at the end of the first quarter of 2019were $934.0 million,compared to $749.2 million at the end of the fourth quarter of 2018.

Short-term borrowingsand current portion of long-term borrowings on project assets at the end of the first quarter of 2019 were $1.4billion,compared to $1.3 billion at the end of the fourth quarter of 2018. Long-term borrowings at the end of the first quarter of 2019 were $433.5million,compared to $393.6 million at the end of the fourth quarter of 2018.

Total borrowings directly related to the Company's utility-scale solar power projects were $735.0 million at the end of the first quarter of 2019,compared to $735.1 million at the end of the fourth quarter of 2018.Total debt at the end of the first quarter of 2019 was approximately $1.92 billion,compared to approximately $1.96 billion at the end of the fourth quarter of 2018.

Yan Zhuang,acting Chief Executive Officer of Canadian Solar,commented,"After achieving close to 140% growth of net profit in 2018 from the 2017 level,we reasonably expected a healthy pause in the first quarter of 2019due to theacceleration of some high-profit project sales from 2019 into 2018,the appreciation of the RMB,lost manufacturing days related to our ERP system upgrade and the impact of Chinese New Year on production and sales volumes. Despite these challenges,we remained focused and delivered Q1 2019 solar module shipments,revenue and gross margin at or above our expectations. We are encouraged by the healthy demand levels we are seeing in our key markets,stability in module ASPs and anticipated higher utilization of our capacity. Our late-stage,utility-scale solar power project pipeline,including those under construction,increased to approximately 3.4 GWp,as of April 30,2019. The sale of the majority of these projects remains on track for 2020 or later. Our portfolio of solar power plants in operation,was 983.6 MWp,with an estimated total resale value of approximately $1.2 billion. In addition,we are pleased with the interest in our high efficiency products. These products continue to give us added competitive advantage as we deliver to customers higher efficiency and lower total cost of ownership energy solutions."

Dr. Huifeng Chang,Senior Vice President and Chief Financial Officer of Canadian Solar,added,"We managed all aspects of the business within our direct control,with total operating expenses lowered to $100.8 million compared to $134.7 million in the fourth quarter of 2018. Our continued organizational focus on profitable module sales helped us deliver a 21.6% gross margin in a challenging quarter,which was above our expectations. Our overall profitability for the first quarter 2019 was impacted by a foreign exchange loss due to the appreciation of the RMB against the U.S. dollar,lost manufacturing days and a lower production volume due to our ERP system upgrade and the Chinese New Year holiday,as well as anticipated lower sales of solar power projects compared to the previous quarter. We expect our profitability will improve as we move through 2019. We signed an agreement in April to sell 80% interest in our 482.6 MWp late-stage project portfolio in Brazil and expect to close this transaction and recognize the revenue after the second quarter of 2019. In addition,in May,we completed the sale of the 134 MWp Mustang project in the U.S. and the 68 MWp Aguascalientes project in Mexico."

Utility-Scale Solar Project Pipeline

The Company divides its utility-scale solar project pipeline into two categories: an early-to-mid-stage pipeline and a late-stage pipeline. The late-stage pipeline includes primarily those projects that have feed-in tariffs (FITs) or power purchase agreements (PPAs),and are expected to be built within the next four years. The Company cautions that some late-stage projects may not reach completion due to such factors as failure to secure permits and grid connection,and changes of host country political and economic conditions,among others.

Late-Stage Utility-Scale Solar Project Pipeline

As of April 30,the Company's late-stage,utility-scale solar project pipeline,including those in construction,totaled approximately 3.4 GWp,with 1,525 MWp in the U.S.,482.6MWp in Brazil,368 MWp in Mexico,294.8 MWp in Japan,100 MWp in China and additional 651.5 MWp in Australia,Argentina,Canada,Israel,Taiwan,the Philippines,India,Malaysia,Italy and South Korea.

In the United States,as of April 30,utility-scale solar project pipeline totaled 1,525 MWp as detailed in the table below. In March,the Company signed a 280 MWp power purchase agreement on another project in Texas,as well as a 20-year 35 MWp power purchase agreement with Power and Water Resources Pooling Authority (PWRPA) on the Slate project in Kings County,California. In April,the Company secured a $50 million letter of credit facility from Natixis to support the development of its solar and storage projects across the U.S. and Canada.

As of April 30,utility-scale solar project pipeline in the U.S. totaled 1,525 MWp* asdetailed in the table below.

Project

MWp

Storage (MWh)

Location

Status

Expected COD

Gaskell West 2

147

N/A

California

Development

2020

Pflugerville

185

N/A

Texas

Development

2020

Texas Project

280

N/A

Texas

Development

2020

Texas Project 2

310

N/A

Texas

Development

2020

Texas Project 3

280

N/A

Texas

Development

2021

Slate

235

180

California

Development

2021

Stanford Solar

Generating Station #2

88

N/A

California

Development

2021

Total

1,525

*This table does not include the 100 MWac Sunflower project located in Mississippi. In November 2018,the Company entered into a build-to-transfer agreement with Entergy Mississippi for the Sunflower project. As part of the agreement,Entergy Mississippi will serve as both project owner and electricity off-taker once the project is constructed and transferred to them. This build-to-transfer agreement is pending approval by the Mississippi Public Service Commission.

In Japan,for which interconnection agreements and FIT have been secured,totaled approximately 294.8 MWp,including 97.7 MWp under construction and 197.1 MWp under development.

The Japan Ministry of Economy Trade and Industry (METI) finalized the rule change to the FIT program for 32,36 and 40 yen projects that are not operational. The Company's current pipeline of 294.8 MWp in Japan reflects the anticipated impact of the final rule change.

The table below sets forth the expected COD schedule of the Company's late-stage utility-scale solar power projects in Japan,2019:

Expected COD Schedule (MWp)

2019

2020

2021 and

Thereafter

Total

67.7

48.6

178.5

294.8

In Brazil,the Company has a 482.6 MWp late-stage,utility-scale solar project pipeline as detailed in the table below.

Project

MWp

Location

Status

Expected

COD

Francisco Sa

114.3

Minas Gerais

Development

2021

Jaiba

101.6

Minas Gerais

Development

2021

Lavras

152.4

Ceara

Development

2021

Salgueiro

114.3

Pernambuco

Development

2020

Total

482.6*

In April 2019,the Company signed an agreement to sell its 80% interest in the 482.6 MWp of solar power projects toNebras Power Investment Management B.V.,a Dutch affiliate of Nebras Q.P.S.C. Canadian Solar will supply its high efficiency bi-facial solar modules to the projects. The Company expects to close the transaction and recognize the revenue after the second quarter of 2019.

In Mexico,the Company has a 368 MWp late-stage,utility-scale solar project pipeline as detailed in the table below.

Project

MWp

Location

Status

Expected

COD

EL Mayo

124

Sonora

Development

2021

Horus

119

Aguascalientes

Development

2020

Tastiota

125

Sonora

Development

2020

Total

368

In China,the Company's late-stage power pipeline was 100 MWp.

Solar Power Plants in Operation

In addition to its late-stage,the Company had a portfolio of utility-scale,solar power plants in operation totaling 983.6 MWp. The Company records these power plants on the balance sheet as "project assets (build to sell)","assets held-for-sale" and "solar power systems,net (build to own)". The proceeds of sale of projects recorded as "project assets (build to sell)" on the balance sheet will be recorded as revenue in the income statement once revenue recognition criteria are met. The gain or loss from the sale of projects recorded as "assets held-for-sale" and "solar power systems,net (build to own)" on the balance sheet will be recorded within "other operating income (expenses)" in the income statement.

*The table below sets forth the Company's total portfolio of utility-scale,solar power plants in operation,2019:

U.S.

Japan

China

India

Mexico

Others

Total

339.9*

86.2

370.3

90.1

68*

29.1

983.6

*The Company soldthe 134 MWp Mustang solar power plant in the U.S. and the 68 MWp Aguascalientes solar power plant in Mexico in May 2019.

Manufacturing Capacity

The table below sets forth the Company's manufacturing capacity expansion plan for2019.

Manufacturing Capacity (MW)

31-Dec-18

(Actual)

30-Jun-19

(Planned)

31-Dec-19

(Planned)

Ingot

1,650

1,650

Wafer

5,000

5,000

Cell

6,300

7,800

9,300

Module

8,880

9,130

11,200

The Company's manufacturing capacity expansion plan is subject to change based on market conditions.

Business Outlook

The Company's business outlook is based on management's current views and estimates with respect to market conditions,production capacity,order book and global economic environment. This outlook is subject to uncertainty on final customer demand,solar project construction and sale schedules. Management's views and estimates are subject to change without notice.

For the second quarter of 2019,the Company expects total solar module shipments to be in the range of approximately 1.95GW to 2.05GW,including approximately 50 MW of shipments to the Company's utility-scale solar power projects that may not be recognized as revenue in the second quarter 2019. Total revenue for the second quarter of 2019 is expected to be in the range of $970 million to $1.01billion. Gross margin for the second quarter is expected to be between 13% and 15%,reflecting the inclusion of the Mustang project sale,which hasa lower gross margin based on the enterprise value of the project,not equity. Excluding the Mustang project sale,gross margin for the second quarter is expected to be between 16% and 18%.

Yan Zhuang,acting Chief Executive Officer of Canadian Solar commented: "All key aspects of our fundamental business remain strongled by healthy demand and relatively stable pricing. We view Q1 2019 as a one-time bump in our record of consistently delivering profitable results in both up and down markets. Our focus is on monetizing the 3.4 GWp of assets in our late-stage,utility scale solar power project pipeline and redeploying that capital into attractive project opportunities to ensure our future success. Separately,in our MSS business,we are currently running with about 50% to 60% of our long-term capacity booked. We have historically left some capacity to meet the needs of higher margin near-term sales. This has been a very successful strategy and remains an important element of our planning,execution and track record of success."

Recent Developments

On May 29,Canadian Solar announced that it signed a multi-year module supply agreement with EDF Renewables North America to deliver 1,800 MW of high efficiency solar modules for projects in the U.S.,and Mexico. This module supply agreement represents the largest single module supply agreement in Canadian Solar's 18 year history.

On May 28,Canadian Solar announced that it achieved a world record of 22.28% conversion efficiency for its p-type multi-crystalline P5 cells. The record high P5 cell efficiency was tested and certified by Fraunhofer ISE of Germany in April 2019.

On May 23,Canadian Solar announced that it completed the sale of 68 MWp Aguascalientes project in Mexico to BlackRock.

On May 16,Canadian Solar announced that its wholly-owned subsidiary,Recurrent Energy,LLC completed the sale of the 134 MWp Mustang project in the U.S. to Goldman Sachs Asset Management,L.P.

On May 15,Canadian Solar announced that it closed a $50 million term loan from Credit Suisse to support the development of its international solar project pipeline and for general corporate purposes. The U.S. dollar denominated term loan is expected to mature in April 2021. Credit Suisse further provided Canadian Solar with a cross-currency interest rate swap to hedge its cross-currency interest rate liabilities relating to the term loan.

On May 1,Canadian Solar announced that it won two accolades in the 2018 Power Finance & Risk Deal of the Year Awards: Latin America Project Finance Borrower of the Year and Latin America Project Finance Deal of the Year for the financing of its 100 MWp solar project in Cafayate,Argentina.

On April29,Canadian Solar Projects K.K.,expanded and renewed its credit facility with a syndicate of four finance leasing institutions led bySumitomo Mitsui Finance and Leasing Company,Limited (SMFL). SMFLis a member ofSumitomo Mitsui Financial Group and one ofJapan'slargest leasing institutions with global presence.

On April 24,Canadian Solar announced that it signed an agreement to sell its 80% interest in a 482.6 MWp portfolio of contracted solar projects inBraziltoNebras Power Investment Management B.V.,a Dutch affiliate of Nebras Q.P.S.C.

On April 2,LLC,secured a$50 millionletter of credit facility from Natixis,a multinational financial services firm,to support the development of the Company's utility-scale solar projects across the U.S. andCanada.

Conference Call Information

The Company will hold a conference call at 8:00 a.m. U.S. Eastern Daylight Time on May 30,2019 (8:00 p.m.,2019 in Hong Kong) to discuss the Company's first quarter 2019 results and business outlook. The dial-in phone number for the live audio call is +1 866 519 4004 (toll-free from the U.S.),+852-3018-6771 (local dial-in from HK) or +1 845-675-0437 (from international locations). The passcode for the call is 3779288. A live webcast of the conference call will also be available on the Investor Relations section of Canadian Solar's website at www.canadiansolar.com.

A replay of the call will be available 2 hours after the conclusion of the call until 8:00 a.m. U.S. Eastern Daylight Time on Friday,June 7,2019 in Hong Kong) and can be accessed by dialing +1-855-452-5696 (toll-free from the U.S.),+852-3051-2780 (local dial-in from HK) or +1-646-254-3697 (from international locations),with passcode 3779288. A webcast replay will also be available on the investor relations section of Canadian Solar's at www.canadiansolar.com.

AboutCanadian Solar Inc.

Canadian Solar was founded in 2001 in Canada and is one of the world's largest and foremost solar power companies. It is a leading manufacturer of solar photovoltaic modules and provider of solar energy solutions and has a geographically diversified pipeline of utility-scale solar power projects in various stages of development. Over the past 18 years,Canadian Solar has successfully delivered over 34 GW of premium-quality,solar photovoltaic modules to customers in over 150 countries. Canadian Solar is one of the most bankable companies in the solar industry,having been publicly listed on NASDAQ since 2006. For additional information about the Company,follow Canadian Solar on LinkedIn or visit www.canadiansolar.com.

Safe Harbor/Forward-Looking Statements

Certain statements in this press release regarding the Company's expected future shipment volumes,gross margins are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially. These statements are made under the "Safe Harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases,you can identify forward-looking statements by such terms as "believes," "expects," "anticipates," "intends," "estimates," the negative of these terms,or other comparable terminology. Factors that could cause actual results to differ include general business and economic conditions and the state of the solar industry; governmental support for the deployment of solar power; future available supplies of high-purity silicon; demand for end-use products by consumers and inventory levels of such products in the supply chain; changes in demand from significant customers; changes in demand from major markets such as Japan,the U.S.,India and China; changes in customer order patterns; changes in product mix; capacity utilization; level of competition; pricing pressure and declines in average selling prices; delays in new product introduction; delays in utility-scale project approval process; delays in utility-scale project construction; delays in the completion of project sales; continued success in technological innovations and delivery of products with the features customers demand; shortage in supply of materials or capacity requirements; availability of financing; exchange rate fluctuations; litigation and other risks as described in the Company's SEC filings,including its annual report on Form 20-F filed on April 25,2019. Although the Company believes that the expectations reflected in the forward looking statements are reasonable,it cannot guarantee future results,level of activity,performance,or achievements. Investors should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date,unless otherwise stated,and Canadian Solar undertakes no duty to update such information,except as required under applicable law.

FINANCIAL TABLES FOLLOW

Canadian Solar Inc.

Unaudited Condensed Consolidated Statement of Operations

(In Thousands of US Dollars,Except Share And Per Share Data And Unless Otherwise Stated)

Three Months Ended

March 31,

December 31,

March 31,

2019

2018

2018

Net revenues

$ 484,719

$ 901,041

$ 1,424,911

Cost of revenues

377,280

629,732

1,280,965

Gross profit

107,439

271,309

143,946

Operating expenses:

Selling expenses

37,931

44,372

42,331

General and administrative expenses

51,423

81,309

48,775

Research and development expenses

13,166

15,417

9,499

Other operating income

(1,686)

(6,353)

(34,906)

Total operating expenses

100,834

134,745

65,699

Income from operations

6,605

136,564

78,247

Other income (expenses):

Interest expense

(21,699)

(23,003)

(29,594)

Interest income

2,029

2,180

3,576

Gain (loss) on change in fair value of

derivatives

(1,260)

(7,256)

4,474

Foreign exchange gain (loss)

(12,586)

7,328

(8,456)

Investment income

545

35,416

-

Other expenses,net

(32,971)

14,665

(30,000)

Income (loss) before income taxes and equity in

earnings (loss) of unconsolidated investees

(26,366)

151,229

48,247

Income tax benefit (expense)

7,529

(36,684)

(4,092)

Equity in earnings (loss) of unconsolidated

investees

1,981

(445)

(269)

Net income (loss)

(16,856)

114,100

43,886

Less: Net income attributable to non-controlling

interests

309

2,516

509

Net income (loss) attributable to Canadian Solar

Inc.

$ (17,165)

$ 111,584

$ 43,377

Earnings (loss) per share - basic

$ (0.29)

$ 1.89

$ 0.74

Shares used in computation - basic

59,231,227

59,160,338

58,553,622

Earnings (loss) per share - diluted

$ (0.29)

$ 1.81

$ 0.72

Shares used in computation - diluted

59,227

62,356,019

61,952,777

Canadian Solar Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income

(In Thousands of US Dollars)

Three Months Ended

March 31,

2019

2018

2018

Net Income (loss)

(16,886

Other comprehensive income (net of tax of nil):

Foreign currency translation adjustment

15,985

(38,399)

23,181

Gain (loss) on changes in fair value of derivatives

(2,370)

(3,416)

5,128

Loss on de-recognition of commodity hedge and

interest rate swap

-

(8,752)

-

Comprehensive income (loss)

(3,241)

63,533

72,195

Less: comprehensive income (loss) attributable to

non-controlling interests

(4,327)

1,189

3,500

Comprehensive income attributable to Canadian

Solar Inc.

1,086

62,344

68,695

Canadian Solar Inc.

Unaudited Condensed Consolidated Balance Sheets

(In Thousands of US Dollars)

March31,

December31,

2019

2018

ASSETS

Current assets:

Cash and cash equivalents

$ 370,154

$ 444,298

Restricted cash

516,407

480,976

Accounts receivable trade,net

388,707

498,231

Amounts due from related parties

14,210

16,740

Inventories

385,141

262,022

Value added tax recoverable

129,022

107,222

Advances to suppliers

75,181

37,011

Derivative assets

5,262

4,761

Project assets

919,545

933,563

Prepaid expenses and other current assets

286,215

289,497

Total current assets

3,089,844

3,074,321

Restricted cash

25,744

15,716

Property,plant and equipment,net

932,983

884,986

Solar power systems,net

60,396

54,898

Deferred tax assets,net

121,811

121,087

Advances to suppliers

58,830

48,908

Prepaid land use right

66,032

65,718

Investments in affiliates

128,232

126,095

Intangible assets,net

18,539

14,903

Goodwill

1,005

1,005

Derivatives assets

1,458

3,216

Project assets

393,401

352,200

Right-of-use assets*

48,072

-

Other non-current assets

126,520

129,605

TOTAL ASSETS

$ 5,072,867

$ 4,892,658

Canadian Solar Inc.

Unaudited Condensed Consolidated Balance Sheets (Continued)

(In Thousands of US Dollars)

March31,

2019

2018

Current liabilities:

Short-term borrowings

$ 1,071,107

$ 1,027,927

Long-term borrowings on project assets -

current

280,481

265,770

Accounts payable

492,737

379,462

Notes payable

441,270

369,722

Amounts due to related parties

6,649

16,847

Other payables

379,571

408,013

Convertible notes

-

127,428

Advance from customers

38,334

39,024

Derivative liabilities

3,321

13,698

Lease Liabilities*

19,280

-

Tax equity liabilities

157,954

158,496

Other current liabilities

173,673

141,970

Total current liabilities

3,064,377

2,948,357

Accrued warranty costs

52,846

50,605

Long-term borrowings

433,502

393,614

Amounts due to related parties

505

568

Derivatives liabilities

497

-

Liability for uncertain tax positions

15,523

20,128

Deferred tax liabilities

35,036

35,698

Loss contingency accruals

22,831

24,608

Lease Liabilities*

31,316

-

Financing liabilities

79,335

77,835

Other non-current liabilities

64,406

68,400

Total LIABILITIES

3,800,174

3,619,813

Equity:

Common shares

703,648

702,931

Additional paid-in capital

13,047

10,675

Retained earnings

604,851

622,016

Accumulated other comprehensive loss

(91,898)

(110,149)

Total Canadian Solar Inc. shareholders' equity

1,229,648

1,225,473

Non-controlling interests in subsidiaries

43,045

47,372

TOTAL EQUITY

1,272,693

1,845

TOTAL LIABILITIES AND EQUITY

$ 5,658

Note: * The Company adopted ASU 2016-02 - Leases (Topic ASC842) in the first quarter of 2019 using the optional transition method and elected certain practical expedients,which were permitted under the guidance ASU 2018-11,Leases (Topic 842) - Targeted Improvements. The transition guidance allowed the Company not to reassess prior conclusions related to contracts containing leases or lease classification. The adoption primarily affected the condensed consolidated balance sheet through the recognition of right-of-use assets and lease liabilities as of January 1,2019. The adoption did not have a significant impact on the results of operations or cash flows.

View original content:/news-releases/canadian-solar-reports-first-quarter-2019-results-300859001.html