Canadian Solar Reports First Quarter 2022 Results

GUELPH,ON,May 24,2022 --Canadian Solar Inc.("Canadian Solar" or the "Company") (NASDAQ: CSIQ) today announced financial results for the first quarter ended March 31,2022.

Highlights

Solar module shipments of 3.63 GW,in line with guidance of 3.6 GW to 3.8 GW.

15% increase in revenue year-over-year ("yoy") to $1.25 billion,in line with guidance of $1.25 billion to $1.35 billion.

14.5% gross margin,in line with guidance of 14.5% to 15.5%.

Net income attributable to Canadian Solar of $9 million,or $0.14 per diluted share.

Global Energy solar project pipeline of 24 GWp and storage pipeline of over 27 GWh,as of March 2022.

Carve-out IPO of CSI Solar Co.,Ltd. ("CSI Solar" or the "CSI Solar subsidiary") remains on track.

Accelerating upstream capacity expansion plan.

Dr. Shawn Qu,Chairman and CEO,commented,"First quarter 2022 shipments,revenue and gross margin all came in as expected,despite the challenging operating environment. Our teams continued to focus on executing the strategy of building our long-term competitive position across solar module,battery storage,system solutions and global project development businesses. Today we are announcing an acceleration of our upstream capacity expansion plan for 2022 with the latest state-of-the-art technologies. This will meaningfully increase the vertical integration level of our manufacturing capacity and solidify our global leadership position. In this process,we expect to gain better control of cost,technology and product quality. At the same time,we are growing our battery storage business,winning contracts in new markets and segments,while continuing our development of proprietary battery storage technologies for both utility-scale and residential solutions.

"Regarding the carve-out IPO of CSI Solar,despite the slowdown caused by severe COVID-related lockdowns in China,its registration process with the China Securities Regulatory Commission remains on track."

Yan Zhuang,President of Canadian Solar's CSI Solar subsidiary,said,"While the first quarter was challenging,as we expected,with polysilicon price cost inflation coming back,we took mitigating measures by continuing to raise prices and optimize capacity utilization,improve product efficiencies,and further reduce our processing costs. Despite the headwinds,we grew CSI Solar revenue by 74% and gross profit by 161% yoy. While it is still early into 2022,we are encouraged to see logistic costs starting to come down,albeit from a high level,and currencies starting to move in our favor after two years of headwinds. Longer term,with demand for renewable energy expected to remain as strong as ever,we will continue to build on our strong brand and track record,gain market share in established markets and enter new and rapidly growing markets."

Ismael Guerrero,Corporate VP and President of Canadian Solar's Global Energy subsidiary,"In the first quarter of 2022,we delivered approximately 350 MWp of project sales in the U.S.,which were mostly pre-construction projects. We also made significant progress in our development activities,signing new power purchase agreements ("PPAs") in Brazil,Italy and the U.S. In the current inflationary environment,underlying demand for clean energy assets continues to accelerate. Our strategy remains unchanged,that is to grow the base of recurring revenue from retained assets and contracted services,which is why we have raised our long-term operational O&M (operations and maintenance) project targets,while proactively managing policy and currency risks across our key markets."

Dr. Huifeng Chang,Senior VP and CFO,added,"In the first quarter,we achieved $1.25 billion in revenue and a 14.5% gross margin,both within our guidance range. We strategically increased our inventories of raw materials as well as finished goods,as we support customer demand and work to mitigate the impact of inflation. Net cash provided by operating activities in the first quarter of 2022 was $159million,compared to net cash used in operating activities of $235million in the fourth quarter of 2021. We ended the quarter with a total cash position of $1.7 billion,which gives us continued financial flexibility to fund long-term growth opportunities,including accelerating our upstream capacity expansion."

First Quarter 2022 Results

Total module shipments recognized as revenues in the first quarterof 2022 were 3.63 GW,up 42% yoy. Of the total,156 MWwere shippedto the Company's own utility-scale solar power projects.

Net revenues in the first quarter of 2022 were $1.25 billion,up 15% yoy and down 18% quarter-over-quarter ("qoq").The yoy increase was mainly driven by higher solar shipment volumes and ASP,and significant growth in the Company's battery storage solutions business,partially offset by lower project sales. The sequential decrease was mainly driven by lower project sales.

Gross profit in the first quarter of 2022 was $181 million,down 7% yoy and 40% qoq.Gross margin in the first quarter of 2022 was 14.5%,within prior guidance,and compared to 19.7% in the fourth quarter of 2021. The sequential gross margin decline was mainly driven by higher raw material costs and the absence of U.S. anti-dumping and countervailing duty true up benefit in the current quarter relative to the prior quarter,which was partially offset by higher modules pricing and higher margin project sales.

Total operating expenses in the first quarter of 2022 were $165 million compared to$234 million in the fourth quarter of 2021and $151 million in the first quarter of 2021.Thesequential decrease was mainly driven by lower shipping and handling expenses and an increase in other operating income.

Non-cash depreciation and amortization charges in the first quarter of 2022 were $66 million,compared to $76 million in the fourth quarter of 2021 and $62 million in the first quarter of 2021.

Net foreign exchange gain in the first quarter of 2022 was $3million,compared to a net gain of $1 million in thefourth quarter of 2021and a net loss of $7 million in the first quarter of 2021.

Income tax benefit in the first quarter of 2022 was $5million,compared to a $27million income tax expense in thefourth quarter of 2021and a $14 million income tax expense in the first quarter of 2021.The benefit was a result of a lower income before income tax and a Canadian tax refund.

Net income attributable to Canadian Solar in the first quarter of 2022 was $9 million,or $0.14 per diluted share,compared to net income of $26 million,or $0.39 per diluted share,in the fourth quarter of 2021,and net income of $23 million,or $0.36 per diluted share,in the first quarter of 2021.

For the three months ended March 31,2022,earnings per share – diluted ("Diluted EPS") of $0.14 was calculated from total earnings of $9 million divided by 64.7 million diluted shares. For the three months ended December 31,2021,Diluted EPS of $0.39 was calculated from total earnings of $27 million,including 2.5% coupon of $1.3 million,divided by 70.5 million diluted shares,including 6.3 million shares issuable upon the conversion of the convertible notes. For the three months ended March 31,Diluted EPS of $0.36 was calculated from total earnings of $23 million,divided by 67.5 million diluted shares,including 6.3 million shares issuable upon the conversion of the convertible notes.

Net cash provided by operating activities in the first quarter of 2022 was $159million,compared to net cash used in operating activities of $235million in the fourth quarter of 2021. The operating cash inflow was mainly driven by changes in working capital,specifically,an increase in accounts payable and short-term notes payable,partially offset by an increase in inventories.

Total debt was $2.7 billion as of March 31,compared to $2.5 billion as of December 31,2021. The increase was mainly driven by an increase in project financing and working capital facilities. Non-recourse debt used to finance solar power projects increased to $550million as of March 31,from $515million as of December 31,2021.

Corporate Structure

The Company has two business segments: CSI Solar and Global Energy. From November 2021,the Company completed the transfer of the China Energy 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.

As such,the Company's business segments are as follows:

The Global Energy segment 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.

The CSI Solar segment 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 PPAs and other permits and requirements for battery storage projects,whereas the latter,CSI Solar,is in thesystem integration business,delivering turnkey battery storage technology solutions.

Global Energy Segment

Canadian Solar has one of the world's largest and most geographically diversified utility-scale solar and energy storage project development platforms,with a strong track record of originating,developing,financing,and building over 6.6 GWp of solar power plants across six continents. The Company has built a leadership position in solar project development with 24 GWp total pipeline,as well as in energy storage project development with over 27 GWh of aggregate pipeline.

The continued pipeline expansion and strong project development track record will support Global Energy's growth in three key areas:

Project sales: The Company plans to grow its volume of project sales by a compound annual growth rate of approximately 50% to 2026,while holding and accumulating assets through investment vehicles (see below) in order to better capture asset value.

Investment vehicles: The Company is optimizing its project monetization strategy by establishing local investment vehicles that will help maximize the value of its project assets. The Company also intends to retain minority ownership in these vehicles. By 2026,the Company plans to reach 1.3 GW of combined net ownership in solar power projects through these vehicles. This approach will help the Company build and grow a stable base of long-term cash flows from contracted electricity. The Company plans to recycle a large portion of the capital into developing new solar projects for growth. Meanwhile,Canadian Solar expects to capture additional operational value throughout the partial ownership period,including long-term cash flows from power sales,O&M,asset management and other services (see point 3). The Company currently owns a 15% stake in the Canadian Solar Infrastructure Fund ("CSIF",TSE: 9284),the largest Japanese infrastructure fundlisted on the Tokyo Stock Exchange,and has also established the CSFS Fund I,a closed-ended alternative investment fund of a similar nature in Italy. Through launching these localized vehicles,Canadian Solar is building up its expertise in designing investment vehicles in local markets that will help maximize the value of its project assets.

Services: Canadian Solar currently manages over 2 GW of operational projects under long-term O&M agreements,and an additional 2 GW of contracted projects that will be operated and maintained by the Company once they are placed in operation. The Company's target is to reach 20 GW of projects under O&M agreements by 2026.

Management targets to achieve the following over the next few years:

Global Energy Targets

2021A

2022E

2023E

2024E

2025E

2026E

Annual Project Sales,GWp

2.1

2.1-2.6

2.8-3.3

3.5-4.0

4.0-4.5

4.3-4.8

Operational O&M Projects,GWp

2.1

4.5

7.5

11

15

20

Net Cumulative Projects Retained,MWp*

292

370

630

1,000

1,100

1,300

Gross Cumulative Projects Retained,MWp*

748

1,500

2,580

3,500

4,000

5,000

*Net projects retained represents CSIQ's net partial ownership of solar projects; the gross number represents the aggregate gross size of projects,including the share which is not owned by CSIQ.

Solar Project Pipeline

As of March 31,the Company's total project pipeline was 23.8 GWp,including 1.1 GWp under construction,4.2 GWp of backlog,and 18.5 GWp of earlier stage pipeline.

Backlogprojects are late-stage projects that have passed their Risk Cliff Date and are expected to be built in the next 1-4 years. A project's Risk Cliff Date is the date on which the project passes the last high-risk development stage and varies depending on the country where it is located. This is usually after the projects have received all the required environmental and regulatory approvals,and entered into interconnection agreements,feed-in tariff ("FIT") arrangements and PPAs. Over 90% of projects in backlog are contracted (i.e.,have secured a PPA or FIT),and the remaining are reasonably assured of securing PPAs.

Pipeline projectsare early- to mid-stage project opportunities currently under development that are yet to be de-risked.

The following table presents the Company's total project pipeline.

Total Project Pipeline (as of March 31,2022) – MWp*

Region

In Construction

Backlog

Pipeline

Total

North America

115

472

7,641

8,228

Latin America

841**

2,536

3,393

6,770

Europe,the Middle East and Africa ("EMEA")

15

277

4,523

4,815

Japan

161

175

72

408

Asia Pacific excluding Japan and China

3

188

1,795

1,986

China

-

550

1,070

1,620

Total

1,135

4,198

18,494

23,827

*All numbers are gross MWp.

**Including 403 MWp in construction already sold to third parties.

The Company has 336 MWp of FIT projects in Japan. The table below sets forth the expected COD schedule of the Company's project backlog in development and construction in Japan,as of March 31,2022:

Expected COD Schedule – MWp

2022

2023

2024 and

thereafter

Total

136

52

148

336

Battery Storage Project Pipeline

The Global Energy segment has been actively developing utility-scale solar plus energy storage projects,as well as stand-alone battery storage projects. Since the first quarter of 2021,the Company has been co-hosting energy storage facilities with solar power plants on the same piece of land for nearly all projects under development. By using one interconnection point per project,the Company expects to significantly enhance the efficiency of its development and the value of its assets under development.

In addition,Canadian Solar has already signed several storage tolling agreements with a variety of power purchasers,including community choice aggregators,investor-owned utilities,universities,and public utility districts. The Company has also signed development services agreements to retrofit operational solar projects with battery storage,many of which were previously developed by the Company.

The table below sets forth Global Energy's storage project development backlog and pipeline.

StorageProject Development Backlog and Pipeline(as of March 31,2022) – MWh

Region

In Construction

Backlog

Pipeline

Total

North America

1,400

-

15,479

16,879

Latin America

-

1,050

2,860

3,910

EMEA

-

56

2,617

2,673

Japan

-

-

19

19

Asia Pacific,excluding Japan and China

20

-

2,280

2,300

China

-

300

1,400

1,700

Total

1,420

1,406

24,655

27,481

Solar Power Plants and Battery Storage Projects in Operation

As of March 31,the Company's solar power plants in operation totaled 800 MWp,with a combined estimated net resale value of approximately $580million to Canadian Solar. The estimated resale value is based on selling prices that Canadian Solar is currently negotiating or comparable asset sales.

Solar Power Plants in Operation – MWp*

Latin America

Japan

Asia Pacific

ex. Japan and China

China

Total

316

43

359

82

800

*All numbers are gross MWp,including 196 MWp in Latin America and 2MWp in Asia Pacific ex. Japan and China already sold to third parties.

Operating Results

The following table presents unaudited select results of operations data of the Global Energy segment for the periods indicated.

Global Energy Segment Financial Results

(In Thousands of U.S. Dollars,Except Percentages)

Three Months Ended

March 31,2022

December

31,2021

March 31,2021

Net revenues

92,966

232,418

471,062

Cost of revenues

75,130

224,359

358,037

Gross profit

17,836

8,059

113,025

Operating expenses

18,847

22,787

27,944

Income (loss) from operations*

(1,011)

(14,728)

85,081

Gross margin

19.2%

3.5%

24.0%

Operating margin

-1.1%

-6.3%

18.1%

* Income (loss) from operations reflects management's allocation and estimate as some services are shared by the

Company's two business segments.

CSI Solar Segment

CSI Solar's 2022 capacity expansion targets are detailed below.

Manufacturing Capacity,GW*

Dec. 2021

Actual

Jun. 2022

Plan

Dec. 2022

Plan

Ingot

5.4

5.4

20.4

Wafer

11.5

11.5

20.0

Cell

13.9

13.9

19.8

Module

23.9

27.9

32.0

*Nameplate annualized capacities at said point in time. Capacity expansion plans are subject to change without notice based on market conditions and capital allocation plans.

Operating Results

The following table presents unaudited select results of operations data of the CSI Solar segment for the periods indicated.

CSI Solar Segment Financial Results*

(In Thousands of U.S. Dollars,2021

Net revenues

1,209,994

1,343,278

695,152

Cost of revenues

1,034,165

1,056,750

627,694

Gross profit

175,829

286,528

67,458

Operating expenses

143,931

204,969

120,126

Income (loss) from operations

31,898

81,559

(52,668)

Gross margin

14.5%

21.3%

9.7%

Operating margin

2.6%

6.1%

-7.6%

*Includes effects of both sales to third-party customers and to the Company's Global Energy segment.Please refer

to the attached financial tables for intercompany transaction elimination information. Income (loss) from operations

reflects management's allocation and estimate as some services are shared by the Company's two business

segments.

The table below provides the geographic distribution of the net revenues of CSI Solar:

CSI Solar Net Revenues Geographic Distribution* (In Millions of U.S. Dollars,Except Percentages)

Q1 2022

% of Net

Revenues

Q4 2021

% of Net

Revenues

Q1 2021

% of Net

Revenues

Asia

473

41

546

42

240

39

Americas

453

39

493

38

261

42

Europe and others

231

20

257

20

117

19

Total

1,157

100

1,296

100

618

100

*Excludes sales from CSI Solar to Global Energy.

CSI Solar shipped 3.6 GW of modules to more than 70countries in the first quarter of 2022.The top five markets ranked by shipments were China,Brazil,India,the U.S. and Germany.

Battery Storage Solutions

Within CSI Solar,the battery storage solutions team provides customers with competitive turnkey,integrated battery storage solutions,including bankable and fully wrapped capacity and performance guarantees. These guarantees are complemented with long-term service agreements,which include future battery capacity augmentation services and bring in long-term,stable income.

The table below sets forth CSI Solar's battery storage system integration's project pipeline as of March 31,2022.

LTSA (Long

Term Service

Agreement)

Contracted/

In Construction

Forecast

Pipeline

Total

Storage (MWh)

861

1,572

340

4,399

7,172

LTSA projects are operational battery storage projects delivered by CSI Solar that are under multi-year long-term service agreements and generate recurring earnings. Contracted/in construction projects are expected to be delivered within the next 12 to 18 months. Forecast projects include those that have more than 75% probability of being contracted within the next 12 months,and the remaining pipeline includes projects that have been identified but have a below 75% probability of being contracted.

Business Outlook

The Company's business outlook is based on management's current views and estimates given factors such as existing market conditions,order book,production capacity,input material prices,foreign exchange fluctuations,anticipated timing of project sales,and the global economic environment. This outlook is subject to uncertainty with respect to,among other things,customer demand,project construction and sale schedules,product sales prices and costs,the global impact of the ongoing COVID-19 pandemic,and geopolitical conflicts. Management's views and estimates are subject to change without notice.

For the second quarter of 2022,the Company expects total module shipments to be in the range of 4.9 GW to 5.1 GW,including approximately 150 MW to the Company's own projects. Going forward,shipment guidance will be based on total shipments recognized as revenues by CSI Solar,which includes both third party and Global Energy shipments. Total revenues are expected to be in the range of $2.2 billion to $2.3 billion. Gross margin is expected to be between 14.5% and 15.5%.

Company guidance for full year 2022 remains unchanged with the following ranges: total module shipments of 20 GW to 22 GW,battery storage shipments of 1.8 GWh to 1.9 GWh,total project sales of 2.1 GW to 2.6 GW and total revenue of $7.0 billion to $7.5 billion.

Dr. Shawn Qu,Chairman and CEO,commented,"We expect to drive higher revenue in the second quarter led by higher volumes in solar module and battery storage shipments,and project sales. Additionally,we expect the net effect from currency fluctuations to be positive on our overall profitability,while partially offset by higher material costs. We continue to leverage our global leadership position in sustainable growth areas,including the greenfield battery storage market,as we focus on profitable growth and building shareholder value."

Recent Developments

On May 17,Canadian Solar announced its wholly owned subsidiary Canadian Solar Projects K.K.,together with its owned special purpose vehicles,topped the ranking of cumulative capacity of solar projects awarded under Japan's FIT auction program since its launch in 2017,according to the latest research published by Clean Tech Lab,Nikkei BP Intelligence Group.

On May 10,Canadian Solar announced that DNV recognized Canadian Solar's 210 mm cell based Hiku7 and BiHiKu7 modules,with power output of up to 670W,are highly reliable,of top quality and with 3% lower LCOE (levelized cost of energy) after DNV conducted a comprehensive review of the said modules,assessing them on production process,performance,reliability and LCOE performance. DNV is a world leading independent third-party expert in product certification,risk management and assurance.

On May 9,Canadian Solar announced it entered the utility scale energy storage market in the United Kingdom after signing agreements to provide integrated energy storage systems and EPC services for four battery storage projects of more than 100 MWh. Pulse Clean Energy is the owner of the four projects.

On May 3,Canadian Solar announced its wholly owned subsidiary Recurrent Energy received approval from the Louisiana Public Service Commission for a PPA for the 132 MWdc / 98 MWac Bayou Galion solar project in Louisiana. 1803 Electric Cooperative is energy off-taker of the project.

On April 7,Canadian Solar announced its wholly owned subsidiary Recurrent Energy signed an agreement to sell the Gaskell West 2 and 3 project of 105 MWac solar plus 80 MWh energy storage to Matrix Renewables. This solar plus storage projectisexpected to reach commercial operation in late2022. Canadian Solar's majority-owned subsidiary CSI Solar will provide the turnkey battery storage solution for the 80 MWh storage part of the project.

On March 15,Canadian Solar announced it started mass production and shipments of new 54-cell format modules with 182 mm cell for residential,commercial and industrial rooftop solar systems. CS6R-MS,the new module type under the HiKu6 series,has power output of up to 420 W and module efficiency of up to 21.5%.

Conference Call Information

The Company will hold a conference call at 8:00 a.m. U.S. Eastern Daylight Time on Tuesday,2022 (8:00 p.m.,Tuesday,2022 in Hong Kong) to discuss its first quarter 2022 results and business outlook. The dial-in phone number for the live audio call is +1-833-239-5565 (toll-free from the U.S.),+852-3018-6771 (local dial-in from Hong Kong),400-8205-286 (local dial-in from Mainland China) or +1-332-208-9468 / +65-6713-5590 from international locations. The passcode for the call is 2656116. A live webcast of the conference call will also be available on the investor relations section of Canadian Solar's website atwww.canadiansolar.com

A replay of the call will be available 2 hours after the conclusion of the call until 9:00 a.m. U.S. Eastern Daylight Time on Wednesday,June 1,2022 (9:00 p.m.,2022 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 Hong Kong),400-8209-035 (toll-free from Mainland China) or +1-646-254-3697 from international locations. The passcode for the replay is 2656116. A webcast replay will also be available on the investor relations section of Canadian Solar's website at www.canadiansolar.com.

AboutCanadian Solar Inc.

Canadian Solar was founded in 2001 in Canada and is one of the world's largest solar technology and renewable energy companies. It is a leading manufacturer of solar photovoltaic modules,provider of solar energy and battery storage solutions,and developer of utility-scale solar power and battery storage projects with a geographically diversified pipeline in various stages of development. Over the past 20 years,Canadian Solar has successfully delivered around 71GWof premium-quality,solar photovoltaic modules to customers across the world. Likewise,since entering the project development business in 2010,Canadian Solar has developed,built and connected over 6.6 GWp in over 20 countries across the world. Currently,the Company has 800 MWp of projects in operation,5.3 GWp of projects under construction or in backlog (late-stage),and an additional 18.5 GWp of projects in pipeline (mid- to early- stage). Canadian Solar is one of the most bankable companies in the solar and renewable energy industry,having been publicly listed on the NASDAQ since 2006.For additional information about the Company,follow Canadian Solar onLinkedInor visitwww.canadiansolar.com.

Safe Harbor/Forward-Looking Statements

Certain statements in this press release,including those regarding the Company's expected future shipment volumes,revenues,gross margins and project sales,and CSI Solar's forecast operating income and net profit,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,regulatory and economic conditions and the state of the solar and battery storage market and industry; geopolitical tensions and conflicts,including impasses,sanctions and export controls; volatility,uncertainty,delays and disruptions related to the COVID-19 pandemic; supply chain disruptions; 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.,China,Brazil and India; changes in effective tax rates; changes in customer order patterns; changes in product mix; changes in corporate responsibility,especially environmental,social and governance ("ESG") requirements; capacity utilization; level of competition; pricing pressure and declines in or failure to timely adjust 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 that customers demand; shortage in supply of materials or capacity requirements; availability of financing; exchange and inflation rate fluctuations; uncertainties related to the CSI Solar carve-out listing; litigation and other risks as described in the Company's filings with the Securities and Exchange Commission,including its annual report on Form 20-F filed on April 28,2022. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable,it cannot guarantee future results,level of activity,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.

Investor Relations Contacts:

Isabel Zhang

Investor Relations

Canadian Solar Inc.

investor@canadiansolar.com

David Pasquale

Global IR Partners

Tel: +1-914-337-8801

csiq@globalirpartners.com

FINANCIAL TABLES FOLLOW

The following tables provide unaudited select financial data for the Company's CSI Solar and Global Energy businesses.

Select Financial Data – CSI Solar and Global Energy

Three Months Ended March 31,2022

(In Thousands of U.S. Dollars,Except Percentages)

CSI Solar

Global

Energy

Elimination

and

unallocated

items (1)

Total

Net revenues

1,994

92,966

(52,611)

1,250,349

Cost of revenues

1,165

75,130

(39,837)

1,069,458

Gross profit

175,829

17,836

(12,774)

180,891

Gross margin

14.5%

19.2%

—

14.5%

Income (loss) from

operations (2)

31,898

(1,011)

(15,372)

15,515

Select Financial Data – CSI Solar and Global Energy

Three Months Ended March 31,2021

(In Thousands of U.S. Dollars,Except Percentages)

CSI Solar

Global

Energy

Elimination

and

unallocated

items (1)

Total

Net revenues

695,152

471,062

(76,875)

1,089,339

Cost of revenues

627,694

358,037

(90,994)

894,737

Gross profit

67,458

113,025

14,119

194,602

Gross margin

9.7%

24.0%

—

17.9%

Income (loss) from

operations (2)

(52,668)

85,081

11,070

43,483

(1) Includes inter-segment elimination,and unallocated corporate costs not considered part of management's evaluation of reportable segment operating performance.

(2) Income (loss) from operations reflects management's allocation and estimate as some services are shared by the Company's two business segments.

Select Financial Data - CSI Solar and Global Energy

Three Months

Ended

March 31,2022

Three Months

Ended

December 31,

2021

Three Months

Ended

September 30,2021

Three Months

Ended

March 31,2021

(In Thousands of U.S. Dollars)

CSI SolarRevenues:

Solar modules

963,045

1,060,303

872,288

552,247

Solar system kits

90,456

79,085

98,920

36,071

Battery storage solutions

82,500

88,430

62,977

2,358

China energy/EPC (incl. electricity

sales)

5,323

55,051

22,337

7,095

Others

16,059

13,432

32,939

20,506

Subtotal

1,157,383

1,296,301

1,461

618,277

Global Energy Revenues:

Solar and battery storage power projects

78,392

218,509

126,224

452,847

O&M and asset management services

7,948

8,730

8,031

9,966

Others (incl. electricity sales)

6,626

5,179

5,734

8,249

Subtotal

92,966

232,418

139,989

471,062

Total net revenues

1,349

1,528,719

1,229,450

1,339

Canadian Solar Inc.

Unaudited Condensed Consolidated Statements of Operations

(In Thousands of U.S. Dollars,Except Share and Per Share Data)

Three Months Ended

March 31,

December 31,

March 31,

2022

2021

2021

Net revenues

$ 1,349

$ 1,719

$ 1,339

Cost of revenues

1,458

1,227,425

894,737

Gross profit

180,891

301,294

194,602

Operating expenses:

Selling and distribution

expenses

108,845

129,463

84,080

General and administrative

expenses

62,810

89,663

67,457

Research and development

expenses

13,280

19,306

12,450

Other operating income

(19,559)

(4,563)

(12,868)

Total operating expenses

165,376

233,869

151,119

Income from operations

15,515

67,425

43,483

Other income (expenses):

Interest expense

(15,302)

(15,532)

(14,673)

Interest income

4,212

2,713

3,248

Gain (loss) on change in

fair value of derivatives,net

(24,738)

13,485

12,572

Foreign exchange gain

(loss),net

27,862

(12,937)

(19,648)

Investment income (loss)

(5,524)

9,327

1,263

Other expenses,net

(13,490)

(2,944)

(17,238)

Income before income taxes

and equity in earnings of

unconsolidated investees

2,025

64,481

26,245

Income tax benefit (expense)

5,183

(26,516)

(13,852)

Equity in earnings of

unconsolidated investees

1,726

1,647

1,203

Net income

8,934

39,612

13,596

Less: Net income (loss)

attributable to non-

controlling interests

(273)

13,648

(9,183)

Net income attributable to

Canadian Solar Inc.

$ 9,207

$ 25,964

$ 22,779

Earnings per share - basic

$ 0.14

$ 0.41

$ 0.38

Shares used in computation -

basic

64,028,919

63,470,059

59,862,901

Earnings per share - diluted

$ 0.14

$ 0.39

$ 0.36

Shares used in computation -

diluted

64,720,107

70,506,025

67,531,709

Canadian Solar Inc.

Unaudited Condensed Consolidated Statement of Comprehensive Income (Loss)

(In Thousands of U.S. Dollars)

Three Months Ended

March 31,

2022

2021

2021

Net Income

$ 8,934

$ 39,612

$ 13,596

Other comprehensive income

(net of tax of nil):

Foreign currency translation

adjustment

7,511

22,013

(31,702)

Gain on changes in fair value of

derivatives

190

59

—

Comprehensive income (loss)

16,635

61,684

(18,106)

Less: comprehensive income

(loss) attributable to non-

controlling interests

1,127

18,281

(15,692)

Comprehensive income (loss)

attributable to Canadian Solar

Inc.

$ 15,508

$ 43,403

$ (2,414)

Canadian Solar Inc.

Unaudited Condensed Consolidated Balance Sheets

(In Thousands of U.S.Dollars)

March 31,

December31,

2022

2021

ASSETS

Current assets:

Cash and cash equivalents

$ 844,560

$ 869,831

Restricted cash

845,394

560,633

Accounts receivable trade,net

728,449

651,372

Accounts receivable,unbilled

17,138

37,244

Amounts due from related parties

72,170

73,042

Inventories

1,628,803

1,192,374

Value added tax recoverable

147,589

125,882

Advances to suppliers

287,735

225,879

Derivative assets

6,455

7,286

Project assets

682,837

594,107

Prepaid expenses and other current assets

432,758

434,177

Total current assets

5,693,888

4,771,827

Restricted cash

3,531

3,818

Property,plant and equipment,net

1,381,635

1,401,877

Solar power systems,net

107,517

108,263

Deferred tax assets,net

225,622

236,503

Advances to suppliers

39,654

34,239

Prepaid land use right

70,622

71,011

Investments in affiliates

98,810

98,819

Intangible assets,net

18,188

18,992

Project assets

525,992

433,254

Right-of-use assets

35,571

35,286

Other non-current assets

171,590

174,453

TOTAL ASSETS

$ 8,372,620

$ 7,388,342

Canadian Solar Inc.

Unaudited Condensed Consolidated Balance Sheets (Continued)

(In Thousands of U.S.Dollars)

March 31,

2022

2021

Current liabilities:

Short-term borrowings

$ 1,282,510

$ 1,271,215

Long-term borrowings on project assets -

current

323,522

321,655

Accounts payable

791,218

502,995

Notes payable

1,338,699

881,184

Amounts due to related parties

886

143

Other payables

669,406

667,854

Advance from customers

145,136

135,512

Derivative liabilities

19,177

2,622

Operating lease liabilities

11,789

12,185

Other current liabilities

178,988

242,783

Total current liabilities

4,761,331

4,038,148

Accrued warranty costs

51,264

45,146

Long-term borrowings

753,413

523,634

Convertible notes

224,922

224,675

Liability for uncertain tax positions

7,612

7,448

Deferred tax liabilities

48,913

48,150

Loss contingency accruals

12,387

15,148

Operating lease liabilities

24,141

23,215

Financing liabilities

53,873

53,641

Other non-current liabilities

290,053

282,699

TOTAL LIABILITIES

6,909

5,261,904

Equity:

Common shares

835,543

835,543

Additional paid-in capital

(17,790)

(19,428)

Retained earnings

1,044,759

1,035,552

Accumulated other comprehensive loss

(44,283)

(50,584)

Total Canadian Solar Inc. shareholders'

equity

1,818,229

1,801,083

Non-controlling interests in subsidiaries

326,482

325,355

TOTAL EQUITY

2,144,711

2,126,438

TOTAL LIABILITIES AND EQUITY

$ 8,342

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