CSIQ - Earnings call transcript Q4 2023

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to Canadian Solar's Fourth Quarter 2023 Earnings Conference Call. My name is Melissa, and I will be your operator for today. [Operator Instructions] As a reminder, this conference is being recorded for replay purposes.I would now like to turn the call over to Wina Huang, Head of Investor Relations at Canadian Solar. Please go ahead.

Wina Huang

welcome, Canadian and XXXX Fourth operator, Call. Conference you, everyone, Solar's to Quarter Thank today's is website conference which that today note Please call on and section.Joining Solar's are Events Dr. are accompanied Canadian Investor the Relations within Presentation us available slides, with Dr. and Solar; Qu, subsidiary, Chairman of Solar's Yan CEO; Shawn President Zhuang, Canadian CSI Huifeng Chang, of and Solar's Recurrent subsidiary, CFO; Canadian Corporate Guerrero, Senior Ismael VP Energy. and President VP and over call, some Q&A the messages All company Shawn after formal will remarks.On participate go quarter. executives the session this key management's for in will and will and results. Huifeng through Yan Ismael for review CSI financial Recurrent will business Solar the highlights and Energy, respectively, go that Shawn will as well prepared their which questions.Before uncertainties. after time subject remarks answers conclude outlook, as for contain and will risks to are prepared listeners with we that begin, the like forward-looking management's business will to would statements have with today, we I questions remarks remind to claims in statements safe protection harbor The Securities the of forward-looking Act Private Reform the for under XXXX. company contained is that Litigation results current from management's expectations. differ Actual may of represent of management's estimates projections the performance today. company's as Any future obligation assumes to these the future, projections no unless applicable otherwise Solar Canadian law. in required by update generally Form discussion accounting Securities will company's uncertainties in and of Annual within accepted GAAP. detailed the with presented and be Regulation filed can found regarding Report principles SEC be more A Exchange G risks Commission.Management's remarks on XX-F the the prepared of requirements or

would and viewed as the both Shawn, assess to Chairman underlying to please be ahead. turn should call I not and to non-GAAP certain go on to substitute data information accordance provide better over CEO, the will Some analysis now, with with by non-GAAP Non-GAAP to Qu. call and Dr. intends information trends. measures for a and performance Solar's establish goals. in further prepared Canadian financial operating management investors non-GAAP enable performance uses information during presented By like investors to of information, provided GAAP GAAP.And a operational Management basis. be disclosing Shawn the company's additional

Shawn Qu

you income call Canadian for per thank Slide deeper, for Solar Please and module a full-year decades. or milestone XX%. year-over-year all-time turn high attributable our delve to shareholders full-stack Wina, Solar X has storage Canadian diluted Quarter net record to of conditions, was gigawatts, you, Slide our drove manufacturing both Fourth CSI challenging XX.X solar our past $XXX joining of of into share, Solar. moment reflect a battery turn solar development. everyone Solar journey a our and achieved Canadian X. spanning historic Thank to business, high.Before take This to evolved revenue million, to the increase shipments X. XXXX $X.XX billion. year marked $X.X to on project we a today.Please let's energy Despite an over and a

Our it cumulative integrated a decision powerhouse CSI carve with of vertically strategic to as gigawatts out Solar shipments. has XXX established

businesses U.S., fueling we XXXX which sustainable This share north driving of transformation. construct autonomous cases, efficiency decade, the largest Moreover, some posed turn backlog, X.X% energy coupled Our demands our remains XXX these a technologies. to including to X.X% diversified According need businesses, in Solar, the world's to prompting night power is power on energy data. intensified execute electricity Please we us. improve their comparable the as has From day Not project grappling hours. power grids, assuming prepared navigate that sectors solar past announced XXXX, X. these diverse consume Bloomberg in it buildings key storage.Transportation by are cryptocurrency to close it the mean? with stressing sources, to with for steadfast see further the are mining, equipped clean investment, and XX electricity is Slide commitment by to reaching energy-hungry the We to our own only is next and the intensive of surge our We from even across U.S. to and increase market requirements in-vehicle demand. one operate more electricity its surge could million XX set ammunition battery $XXX are computers nature, energy most expected in the to continues team needs. to generation data This enables developer.With BlackRock energy electric the BCG, on mix recently is to the possess of XXXX strategic Light-duty triple collaborative business all XXXX, does geographically to by usage of this a also plants. What to and e-STORAGE, million of Energy by that focus different is to technology a long-term battery of Meanwhile, CSI on on levers capitalize reports has in utility-scale of power value X. own our grow. Recurrent for hit deliver a significant $X.X continue can accretive computationally-heavy energy hours terawatt University in terawatt of center massive strategic desktop aging XXx vehicle to to is center computers.Moving evolution. our by growth. with to expansion. Slide according usage Princeton to the we the advantages storage also approximately become and must to world-class phase here but Within industry leading-edge business, world data growth.Turning vehicles a billion the

of see year, smoothly, local job end which On began supporting the factory, our can creation. left, has Texas last at ramping been production you the

in from also strong prepared market see to We Furthermore, continue locally-made have growing products. modules. our interest Thailand demand cells for to and share, to resources wafer our we our support

rules and specifically that of both and origin, of created Solar the compliance and final new past preliminary new Commerce industry.We chain the adjusted the rules, note for its supply Department the over of has the we country determination litigation that Canadian wafer months, X ensure to has of with few within Here, rules. responsibly out certain set X the the confusion reaffirm

is strength our strong U.S. customer on trusted Our brand. relationships in founded and

just renewable month, powered our example, modules the XXX% Bowl. solar Super PV energy ever powered For first last

Top the USA Brand please ahead. received globally will more our from over let also XXXX business. on me call Solar to the details Award market We Yan, that, go CSI PV in provide research.With EUPD, authority Yan who a turn renowned

Yan Zhuang

you, to Thank X. turn Slide Shawn.Please

XXXX shipments, gigawatts. reaching landmark As Solar. solar We a module growth for CSI in noted, a XX.X was year-over-year year XX% achieved

declines hours, grew contracted XX, tackled in of to We segment e-STORAGE The ASP, in of with XX environment, backlog with business inventory uncertainty. generation module of reached January billion as pipeline Our a challenging $X.X distributed channel full-year destocking XXXX. revenue record gigawatt markets billion. in steep and a record $X.X policy

Moreover, also we strategies XX% look Made However, structural mitigate cell in swift our and total We manufacturing cost increasing the to reductions. N-type reach capacity in and of increased this allowed chain.Shifting we're Slide supply energy Alongside cell on of at of to expansion observe near industry.Let make to U.S. N-type made. our progress by year. of now vertical for our our and focus the continued inroads our accounts have technology TOPCon expected manufacturing TOPCon our in the technological to impacts through differentiate the we're our proud us a is as TOPCon, have manufacturing, such and end capacity in half take transition deeper X. ourselves to than able us technologies Thailand modules, more integration we to TOPCon battery strengthened barriers storage.

plays Storage by and critical XXXX. to cumulative to projected terawatt turn role security. storage dispatchability, us X. solar hour Slide grow in energy's market capacity ensuring a X exceeding Let massively, in The is stability

storage. well capture like markets strong solar we growth, strategic and record both are where battery to We positioned track U.S., in the have in a especially energy

trusted for lies record in This most execution its differentiation both, track by is product safety. turnkey customers importantly, operational outstanding trust solutions. and execution.E-STORAGE and spans delivering in Our

years sheet feel Our backed highly of Canadian at we're storage and SolBank while Canadian ensuring iteration more service, with a megawatt Solar ease are brand advanced makes of by products our best-in-class X more XX at markets.Now, in strong system, of name our history one even highest-density X.X, latest features. safety strong market's global with with guarantees operating teams Customers offering compelling. the than hours local our utility-scale energy balance company from

to continue Arizona we're say the We X.X significant the from in e-STORAGE day did breakthroughs. QX global Papago between the project, grow revenues volume, is entered while XXXX, Recurrent operations, project QX, and continued BS national Australia, our project. were U.K., we meaningfully which has developed deliver we profit where of the We're and our which from signed that to profitability. massive revenue In set began what XXx backlog, make we gigawatt in U.S., last to signed first and January it.Just time to proud every e-STORAGE second also more signing contributed Energy. while first the we to project, for meaningful from in including our hour by the realizing largest November than following

first to year in XXXX. blockbuster a the a as the as nearly quarter to of XXXX.In fully of e-STORAGE self-manufactured Following we look product, much XXXX, softer deliver when will indeed a forward XXXX, we entirety transitioned

Solar's Ultimately, storage we nearly the expect significantly to through expect gradually of the both grow Canadian with contribute being revenue and e-STORAGE profitability. QX XXXX, to Over to rest QX. quarters, double we

addition, to ahead. me please crucial on project Energy, purposes.Now, business.Ismael, into commercial In let upstream an technology we a to to downstream. R&D development provide and stronger resources overview both and Gaining our battery Ismael for both Solar's of control business, Recurrent storage invest continue go over Canadian energy global hand strategic is

Ismael Guerrero

powder solar hours the process, bolsters more owning value balance Energy of capital of the create on to $XXX Slide gigawatts counterparties. the and Canadian flows diluted one a the X XX% shares majority after projects, we of BlackRock, by Solar contracted will storage investment. investment commitment The sheet retain with sophisticated top of we very during but world's With own XXXX.The proudly largest Thank more basis. outstanding investment, have renewable operation and equity goal can also will most energy In shares dry of fully the development asset, in own Recurrent battery with $XXX million you, our projects represent XXXX, capacity. an enjoying stable closing million gigawatt is continue develop turn Recurrent this to energy not X Yan.Please revenues debt-raising equips of to and remaining since investors. of our of as-converted By our capital to most announced the from January $XXX us only Energy of and the million cash XX. are our we this in

for capital addition, the is next a In the more depend portfolio compound to that, recycle a equity in earnings. we will capital we aggressively average able capital. to growth drive need to organically. more enabling sufficient developer and have stable our select continue to how XX% and to above needs instrumental transition a do being pure capital raise on we to X Hence, want years.Beyond expand, This growth so owner rate markets, development investment from without long-term long-term a operator plus diversified and our growth

Recurrent concurrently BlackRock, biodiversity, ESG of and on XXXX, to standards, environmental towards XX. support will health the and including engagement across please safety, improving turn justice.Recapping push Slide community With

XXXX, guided. million in as in million $XXX Energy's sales, revenue light and previously achieved full-year $XXX footprint gross XXX operating project in Recurrent the was profit. contribution megawatts For We

a doubled than more to CSI. sale margin in gross Japan to year-over-year XX.X%, thanks through Our significant

moved half other turn certain the we the of long in have run.Please close to this decided While meant have assets fourth to the hold year, quarter valuable XX. over projects to Slide to first

focus to executing global largest the of one on continue and we XXXX, QX mature solar and on pipelines. most During storage

history. of have total to of Of close to pipeline of hours and hours January projects. is solar for gigawatts largest highlight gigawatt XX X undertaking battery of in today XX, of and secured.I we projects. have solar at our battery gigawatts This gigawatts interconnections construction of XX As our storage XX storage solar XX the want gigawatt stood we this,

will and key next XXXX until are come projects not because transition However, fewer projects online that will be swiftly selling we serve as year. building will year, a

the dioxide to networks As Shawn Combined, data to emit year.The Brazil artificial AI world's significantly climate roughly across energy intelligence targets, train is massive households demand. Energy similarly needed and same consume of needs. centers centers technology transmission that model industry mentioned, annually. in they will carbon does surge Electrification is XXX every energy of driving Agency, of amount energy. the the According data be as massive energy currently X.X% International challenging single a consumption with driving exceeding

can course significant electrification benefit sources.In serve interest projects. also we drivers. of as renewable goes for decarbonization catalysts, course, hand to the balanced addition year over expect an micro this only hand expansion of for a when Of demand energy it in decreasing utility-scale effective with rates financing Potentially will solution

year.Now, and While online, geographies EPC operations down, while equipment come so become in power let through more O&M key solar we the X.X will in over contracts X stable results the overall been across others.In PPAs go have now Recurrent need top of segment in and over come gone more returns, financial solar expect growing, have key even hand through Huifeng, and CapEx or on We who please and ahead. for that acquisitions storage remain in rises go both a under gigawatts benefiting markets. a addition, correction detail. services, player costs our to certain and and energy Huifeng, me as have of suffering global too strategically we have products world, a next maintenance to organically aggregate the Energy up battery

Huifeng Chang

Thank QX, gross We year-over-year. increase margin we revenue by were guidance was write-down. with in inventory you, turn and a at shipments, ASPs In billion XX. reaching decline gigawatts, Ismael.Please XX.X%. $X.X X.X on driven The XX% module and lower exceeded was Slide line an to

expenses freight sequentially the has with with at a from lower quarter interest with driven sequentially, million. ongoing the costs the EPS the high we over Sea XX. Research global $XX Net expenses declined This reduction decrease quarter TOPCon to due the course expect administrative over shipping in financing net cost costs foresee December. $X Solar diluted Red disruption and contained and expenses to shipping largely the We inventory slight due of internal the new was XXXX sequentially. the As driven but comparatively increased end fourth until non-meaningful impairments.Selling declined distribution the than further balance was will sizable share was to the $X million, negative Net quarter. X% oversupply development prior and increase exchange of controls. of turning conflict.General X% driven million, by ongoing of to in $XX shareholders and lower cleared negative no lion's income was those The to negative Canadian by course XXXX, fourth X% gain was of cash income interest by net expense attributable up Total less Slide $X sheet. increased investments technologies. in the and million flow million, and $X.XX.Now income. turn in or mainly Please foreign ramp-up

excluding healthy For generated as and of a ended payment the below plans. will period cash borrowing quarter-over-quarter integration over and restricted to in $X.X and Xx capital project CapEx Recurrent with for XXXX, to slowed as balance cash Hence, to CapEx billion, in be incremental some $X.X $X debt total we for approximately increased realized of vertical full we expectation, new cash, XXXX additional the capacity operating working measured Solar EBITDA, million due year a for debt billion development CSI the billion.Leverage down certain We $XXX of and net a XXXX. for expansion net of Energy. slightly in spent the

conclude turn Shawn, be to carried back ahead. and certain to $X.X let slightly expect to higher in Shawn, integration business billion we billion the We only please the is who of note and $X.X the number as approximately call For to vertical go also in whereby billion.Now, outlook. plans our invest XXXX, will guidance that $X.X Recall over remaining XXXX XXXX, this CapEx effect, from we will a we with to U.S. end timing manufacturing. be further due but XXXX. payments spent me guided

Shawn Qu

to Huifeng.Let's XX. Thanks, turn Slide

X.X to of CSI billion Total $X.X of For are gigawatts, billion. the megawatt to first module to solar to to Solar by own XXX quarter our range revenue solar the be XXXX, expect of of $X.X project. in we shipment module X.X in including range expected the approximately be shipment gigawatts

we in growth. and between mentioned, business, are profitable Yan constantly focus our As margin on this with balancing volume

generate XXXX, improved contribution.For CSI margin we be between total to the solar Solar's to Solar's e-STORAGE's volume significant control Our shipments X.X gigawatts to expected profitability. conscious XX gigawatts. revenue an by gross to XX%. shipment meaningful be battery between further of range in gigawatt reiterate CSI more reflecting guidance are expectation module hours to XX hours, storage contribution on improvement XX% to decision profit bolstered X gigawatt is and full-year This will the

also for revenue of be growth a challenging of full-year to trajectory. We reiterate view speak are out XXXX, the me about of guidance range billion $X.X a billion.Finally, XXXX, which optimistic our Coming in $X.X to expect let to XXXX. we market the we

demand see inventory market generation to are We to in channel unleash its posed cleared have rebound potential. as emerging expect a and distributed market

of truly As improvement potential of versus needs. in toward the customers' supply demand and solar module rebalance effective, not possessing industry is capacity overcapacity and half as oversupply expect all differentiate our the pricing, the bankability technology, between TOPCon products.We project that second especially year, reliability we

and Canadian market X undergoes edge. a technologies its strong we key track has vertical as normalization global the With consolidation, Solar As the decades. built robust see integration, go-to-market to over further past trust unparalleled advanced strategy record, and competitive

deliver growth, enduring Operator? questions. floor long-term like with Our value steadfast to shareholders.With that, investments, would us strategic to profitable for commitment the combined to our enables to open now I our

Operator

[Operator Oppenheimer. Colin Rusch Instructions] line comes with first of question Our from the

Colin Rusch

strategy really I been chain lot question business. around storage there's on the a around for And the Obviously, demand. and awful first going and supply that's is lot dynamics pricing there's guess energy the of an the

of some take out there? seeing guys you to reduction some we're you intense how demand trying on that cost the the are advantage thinking of understand to passing want relative the to just on I cells of So, about

Shawn Qu

I Colin, let's anything carbonate go give value answer Yes. and see price the down, or if the to simple mainly if material Yan Yes, pass add. battery have if lithium will a the always to then our cell customers. we

the has long product However, contracting typically very a period. e-STORAGE

deliver we of most well, -- our which contracted least actually, will this some at contract, So ago. months were of XX year

trend took both easing customer of allowed happy. customer price, pricing and forward, we also takes we achieve saving goals. we to this And risk of carbonate financial to our pass pass this But moving we let's our risk. Therefore, So, to if say, a are customer give value, long-term our the sides always customer. the their lithium the see, our

Colin Rusch

That's second super helpful. And I the guess question.

Shawn Qu

question? your Answered

Colin Rusch

interconnection The the second have around portfolio. is question timeframes, queues guys right you technology and if

as opportunities as we've larger And So here these you guys start of couple next markets seen, incremental that the last integration with you are interconnection queues seeing the out bring developments in-house? interconnection you that a enough Would storage technology? of do over deal doing, know And extend to bit you diversify the some for years? to some over here evolving with, years. queues few that? of little end how those of really Is you're

Shawn Qu

the answer to a want this Ismael, question? question is interconnection this you queue. Do about

Ismael Guerrero

have has have it. delays. for we and take the taking are the granted and don't getting going you, storage question. gigawatt granted value. Thank of recently. by that think XX too.We gigawatts that Look, for to very believe saw Hi, of worse huge why a value worse. Shawn. strong Things In more That's already ease. And of our probably seeing we interconnection Happy you applications Sure. PJM, delays, XX interconnections they to on thanks it's hours that we already on stopped way, keep keep instance, the We Colin. seeing

directly directly are we getting things load going and use plants can more so going an and about don't that desalination a to for to more on main of demanding can starting mirror think get having easier. are the instance, even application stuff, behind the of less grid are we we network start platforms more And being to serving kind think things centers instead that I like, I we that the data start the is the storage needed. working how think Those and it's this serve be or on. all are and to difficult. it's have

going it's two my That's think I get to worse. cents.

Colin Rusch

Okay, I'll offline. take of the rest it

Operator

of Vikram Citi. question with next the from Our Bagri comes line

Vikram Bagri

higher implied trading. I was the the like and BlackRock than where from investment your CSI is significantly is valuation wondering stock of Solar

any that Is gap? valuation on gap? if to there wondering can a close So this thoughts you strategy how valuation close

Shawn Qu

how good That's Actually, I a very answer know to don't it. question.

community market mismatch of However, to we between will people indeed business, a this of Solar investor to value will a also the our our while And not understand after but see I there's gap of BlackRock that meetings business. all and recurring present gap, this big the in investment CSI this value. of let our see hope only the by the cap

for together, X that cap. see it's close all we Yes, -- we're If way constantly this you higher to parts I it. And than been market we ways have add CSIQ's looking mean, gap.

Vikram Bagri

out this on margin now helpful storage margin if CSI break is And on both as topic, you the is and of you relatively peers will as the and within business for be share will large one can look Would as storage, outlook segment have large roughly well. your year, separately publicly same well? storage? the as traded that revenues that be what business for to you And this

Shawn Qu

suggestion. very good another again, Well,

I the to value. increase we always shareholder As to said, look maximize, ways for

an a However, is business task. not carve out easy

don't we I So, can carve e-STORAGE this year. out think

moving the I always interested as value. we'll to forward, However, shareholder look maximize method said, in every

Vikram Bagri

are side on the contract? you market? contracted a volumes still before the topic, module challenged what on. question in fourth surprised same need XXXX it above upside guided I was pass wondering the the Great. And can of to on share for leading to volume, what final such one quarter. already versus in especially how then you on shipments And I module guidance much Impressive you

Yan Zhuang

we're QX margin. quarter. bouncing in know unique last XXXX a is QX, we're all pretty half year the expecting to Price be however, under is since year. the industry pretty QX transition pressure be a in on likely back. actually because fast But, came to we second So, actually that -- is down

balance you be make we and So if volume.So, of is to believe year. margin kind year right me, try ask we'll the uptrend going to between this

So, forward. that few have a to generation, But contracts distribution And price for that like we channel will which we're the a worldwide always is a signed weeks shipment. very believe margin loyal right, before back. better in going we actually, channel, But distributed channel. the bounce have moving that channel,

So, a market, distributors high with also the very more U.S. from the which for high installers the confidence for we proportion margin, factory have very the profitable capacity volume right already, and now world.And profitable, a is U.S. the have market around and of highest highest signed our we volume. the priced even up and more especially

it markets, other for So really depends.

in the is example, higher If pace. it try low proportion and of have orders. market, higher we priced we for So, priced some signed manage to market, Japan

However, now some demand as March, up coming really we do see is markets Pakistan. as very which strong even early

right pretty up a volume now. So, price healthy we're at locking

Shawn Qu

Right.

add a I'll few will comments. few comment. I add comments So, a Yan's on

volume of much a volumes are -- You annual how asked guided contracted.

of pricing XXXX Yan the will which said, contract annual will markets long-term very -- module because As I the believe, much of the guidance the depressed, into the to volume Therefore, this think strategy, as improve. is order in strategically the section, some control try pricing strategically to improve. too in to not It protect has contract we margin. volume moment, improve.We mentioned at for we with we QX, this decided too in to the

priced volume, into volume that would to both the sales we want actually well, before But price the the team pick and there, volume. our control believe up the but volume later commit rather in better so contracts -- So, we the price a we want can that is the year. do better we Yan

Operator

Our ROTH next of question line Philip Shen with from comes the MKM.

Philip Shen

to As I have said. has module it QX, a expect an QX, you module guys be of for we QX? your thread think Shawn I $X.XX you QX for basis and to that you pricing, and about, talked Yan, improve, What but Shawn, Specifically, could and way? follow-up could actual pricing think in estimate Can rough our just last improve. roughly any this wrong, on you you do ASP in quantify on be that terms a in in you have It watt. think ASP

Shawn Qu

give on guiding Well, margin, XX% volume. but the QX is gross guidance, we sacrificed in this gross are to you to XX%. we ASP, get which the not order we But margin

to Yan volume. only said, gigawatts plan we X.X X.X So to ship We control gigawatts.

shipped decided X the notice later in the moving volume. that the if in But ship if obviously we you not control And over better we QX, ASP As think at we gigawatts, QX should now least forward, than gigawatts X more. capacity the so we to have to not in quarters modules be par, ASP.

way. Let's view. put have that I it this Yan and

not. or Let's are right see whether we

Philip Shen

Got it.

to Okay. the dynamics do think are And improve. what you the that said it has result in better pricing? You

improve? to have cleared the that heard order production assumptions they So, Europe DG. channel conclusion to now you if We've heard to that a want inventory your in the modules, has in customers what Europe for in has are if it We've get slot. the --

So Asia? in manufacturers now and it So, utilization things Southeast about the the Asia, Is rates to you control the supply? Shawn, have substantially lower can to improve? can why on you for talk China in elaborate,

Yan Zhuang

Okay.

to with first the all, in too growth, and QX already China into going much. growth believe be believe moderate has Europe shipment completed we So, we moderate. market, Philip, because you it's bouncing of just grew is and But pretty China the is as the well, I at channel we're Australia. year, seeing see some -- but very growth Overseas, to a destocking year actually, also in to starting. U.S. still mostly.So, and strong this growing rapidly be new we're we both market, Pakistan like demand going distribution markets channel year last going back, because in last that see since to it's year's channel going is already actually was this be QX think, it the demand strong pricing if look and improvement And overseas blocked

a be of will not grow. utility growth, growth, So, may markets revolution will but it have

as we than capacity is mentioned So, much If XX% we half moving bankable last it's growth assumption, will we total going of year, that demand versus be comparing see demand to half better second to that then already, second like Remember, first second year's because the see higher be see high is comparing actually installation, capacity, actually mentioned the into the have expect a to is to half. half. that also -- capacity year. the Shawn much in should we going already, capacity oversupply TOPCon this with ones the we seasonal pricing.And the

months So capacity. can the effective demand with capacity that -- a very over the features means the around trade traceability and Effective going issues. meaning bankable, versus barriers some ESG can the and and in -- maneuver and see cost few capacity time, to right you're also high

will we half. believe why that's So, it second go actually up in

Philip Shen

through be very in like a That's to what in very to U.S. sense Or detained? detained? the all, Is as might U.S. do a helpful. Can your imports what's percentage? is closer UFLPA situation when it to small your of have so, to that over released? And Shifting the XX% If you it for Yan. like still modest XX% percentage, talk the if you -- might if tensions be being are sub-XX%? maybe you those detained and timeline the the Great, imports U.S. into at are into

Shawn Qu

of most you only and we ], into On get our I U.S. volume UFLPA released [ imported to that say

or Now, questions. lot I can't how in predict every which process have however, respond predict they the -- CBP I can't

I suggest not So, from maybe draw from this I predict. importers. you can -- mean, is something other see But what from historical pattern so you reference you other the I suppliers, can go

Philip Shen

One Okay. one. last

the terms on our of maybe XX% the outlook Some that cut your In telling own of storage, can give meaningfully, growth you may the suggest to pricing for you're XX% little some bit versus all want guys peers. margins? actions? you and for rationale more hearing a of Can color that customers have We're cheaper data. also checks you storage talk about recently you these to may

Shawn Qu

price your I quite we said XX%, XX%? didn't cutting get Who question. are

Philip Shen

XX%. to XX%

I pricing share meaningfully was that can't but storage well, exactly reduced was recently. one -- your somebody highlighting of the who, One -- in your in storage of ecosystem

just XX% you meaningfully? source. verified only reduced you have from haven't guys I so to It's And XX% versus cheaper pricing But peers. be fully might everything. curious, recently one

Shawn Qu

XX% I'm we are good still probably very margin very the That e-STORAGE on strong we Well, because XX%, very peers, product. and if competitiveness. control happy our getting cost below are shows

question price our pass of I when on battery do the that lithium we said to Colin's go price some go that customer. to down As carbonate down, savings and cell

better, is ago. surprising the we than some is the ago not offer today X price it's offered So, years year or that lower of we if a price

So, me. that won't surprise

Yan Zhuang

So, Philip, cheaper once again, we XX% are price. market the not our we're selling If than that's selling lower, peers.

Operator

Sachs. line Brian with the from Goldman Lee comes of question next Our

Brian Lee

I How impact in write-down had a impact mentioned ones. sounds like, you gross the couple much sort I for a quarter. in of did residual And no modeling/housekeeping expected forward. CSI Solar that going Huifeng, guess, margins XQ? is it

Huifeng Chang

write-down. manufacturing, some and up process, ramp-up subtle know-how. of cell and expense points. getting ramp of trade a the case couple one efficiency the a It's of there when in And is we then in TOPCon the About combination

completed. is So, also that process

we going So okay. should forward, be

Brian Lee

Okay.

guess, around So, and your guiding a you're maybe And bps. IRA process then embedding a Understood. I around for how couple the that. of had give for Any impacts or questions margin credits? the thought of us guidance you assuming are QX for from year? in either it just couple of rest guidance, first XXX off, QX your

Huifeng Chang

up. quickly and now U.S. year started module The manufacturing Yes. of last end ramping

some So, also TOPCon China. credits. in our manufacturing completed up ramp we'll pick is up that more important But

that's And margin profit contribute will Solar. to storage significant very then CSI also So, battery helpful.

So together. working everything

passed. I have worst we the seen think have

Brian Lee

of I 'XX it, then into there of kind range give you additional what -- the can course ballpark we margin? you ramp can over us a in what mean, I QX back Okay. is as gross become but guidance suppose could on the And volume impact that Is IRA of for U.S.?

Huifeng Chang

the you I disclose details, share with these all later I framework can't on. -- don't but can we

Brian Lee

Fair provide, in take storage seems you e-STORAGE, We'll on only and that Solar do obviously, breakout managed enough. still Okay. look gross I XX% you at was a margin. the guys like revenue if pretty battery offline. CSI QX, to revenue it guess significant

contributing forward. margins You're are obviously saying going e-STORAGE

embedded module margins 'XX balance is would margins gross your that Is modules? be what of gross higher guide. solar solar margins e-STORAGE So, than QX this for to e-STORAGE in question gross would the assume fair are presumably remain your margins it above for

Huifeng Chang

you I but think I cannot quantitatively, confirm the direction. are thinking right in

Yan Zhuang

Well, I can it is, confirm.

Brian Lee

module Okay. you're storage it's on versus like what we're making about a solar only? between That's I helpful. it mean, delta Is there talking any -- seems I mean, meaningful directionally, above.

Yan Zhuang

say I margin the for XXXX, can XX%. is e-STORAGE gross around for that

Brian Lee

volume year-on-year? terms buckets but Or Obviously, modules.I projects. in growth about what You we where you're about I'll one a Great. from of the what coming panels kind this guess, of $XXX growth that I should of maybe it, directionality storage like helpful the business? like little seems -- the from modeling thinking module the I the of module on storage flat for two, down, all versus is solar at should assumption? on. kind Last look that All it of one, super would and at billion and battery? of for is you're energy or That's it It versus given pricing If Presumably, midpoint, and growth basically about helpful. look revenue revenue your pass versus hanging $X 'XX. perspective. a and very revenue implying color 'XX. they X up energy modeling 'XX in me to it for battery started then then right be across where of at the revenue lot, look in targets revenue And almost incremental did be million some is is of year, versus all

Shawn Qu

This Shawn Yes. is speaking.

revenue -- to the is XXXX e-STORAGE to even some gigawatt meanwhile, in significant. module X volume hour X the although of be first volume-wise, grow But in are solar you see e-STORAGE module the revenue than gigawatt from will We hour from all, growth hour XXXX. drop less not on The revenue yes, proportional of growth will side, growth to right, XXXX e-STORAGE ASP will gigawatt the growth XXXX. to the because X.X

also XXXX, but for dropped Now, bit little comparing with significant. that the ASP not the storage a

Recurrent our the Europe. are and to strong.On projects So, very also the be in plan hold side, revenue you will will right on in that growth of yes, of we most e-STORAGE U.S.

We lot America assets, probably our year. in sell and will projects some in Latin a are assets Japan. more holding of But more overall, we this

going not from are that revenue much to you Recurrent. So, contribution see

by However, project. the a recurring revenue significant we are building holding

to revenue or you zone, see year time strong contribution XXXX a in from XXXX start will or in Recurrent. so see So

Operator

Thank Ladies of we've and turn final gentlemen, the for questions. time management the floor to you. allowed come any end comments. to back our I'll for

Shawn Qu

continued us for today your for you joining support. and Thank

please and If you Take would have a to nice call, a care, questions team. Relations like contact day. Investor set up any or our have

Operator

concludes Thank call. conference you. today's This

may lines You time. for your you your disconnect participation. at this Thank

Canadian Solar (CSIQ) 14 Mar 242023 Q4 Earnings call transcript