On July 17, Canadian Solar announced its voluntary disclosure of operational results for the first half of 2024 on the STAR Market. The company's robust global capabilities and advanced layout in the large-scale storage sector have significantly benefited the veteran photovoltaic (PV) player in this solar cycle.
Canadian Solar expects to achieve a net profit attributable to shareholders of between RMB 1.2 billion and 1.4 billion in the first half of this year. The net profit attributable to shareholders after excluding non-recurring gains and losses is also expected to be between RMB 1.2 billion and 1.4 billion.
The company anticipates a continued increase in net profit in the second quarter of 2024 compared to the first quarter, with a sequential growth rate between 7% and 42%.
Canadian Solar has achieved sequential net profit growth for two consecutive quarters, with specific details as follows:
1）PV Business: In Q1 2024, the company shipped 6.3 GW of modules, a 3.28% increase from the same period last year, with over 20% of the shipments going to the North American market. The company expects module shipments to reach approximately 8 GW in Q2 2024, a 27% increase sequentially. Amid current market conditions, the company is balancing prices and shipment volumes, prioritizing profitability by dropping some loss-making orders and reducing certain product shipments to maintain operational stability and financial health. Leveraging its international capabilities and global brand reputation, Canadian Solar seeks high-margin orders worldwide to achieve profitability.
2）Energy Storage Business: Canadian Solar's progress in the large-scale energy storage sector has established it as the company's second growth driver. With substantial project reserves and signed storage contracts, large-scale storage product deliveries began in earnest this year. In Q1 2024, the delivery volume of large-scale storage products matched the full-year volume of 2023. The company expects a more than 50% increase in Q2 2024 compared to Q1 2024. Canadian Solar projects that the annual shipment volume of large-scale storage products will reach 6-6.5 GWh in 2024, a 500% increase compared to 2023.
In the first half of 2024, Canadian Solar's large-scale storage business achievements include:
- Delivering a 220 MWh (DC) storage system solution to the "Mannum" standalone storage project owned by Epic Energy in South Australia.
- Supporting the construction of Gansu's largest independent shared storage power station project (500 MW/1000 MWh), utilizing Canadian Solar's SolBank storage system. This project is Gansu's first shared storage power station, the first liquid-cooled storage system, and the world's highest voltage (330kV) storage power station.
- Signing a contract with Nova Scotia Power to deliver flagship storage projects in Bridgewater, Waverley, and White Rock, totaling 150 MW/705 MWh (DC).
- Signing a contract with Aypa Power, a Blackstone Group subsidiary, to provide a 498 MWh (DC) standalone storage system for Aypa's Bypass project, expected to be completed in Q3 2025. This marks the third collaboration, with e-STORAGE supplying a total of 1.3 GWh of storage systems to Aypa Power.
(5) As of March 31, 2024, Canadian Solar holds approximately 56 GWh of storage system orders, including signed long-term service agreements, with a total contract value of USD 2.5 billion (approximately RMB 18.1 billion). Additionally, the company has successfully delivered over 5 GWh of storage solutions to the North American, European, and Asia-Pacific markets.
Residential Storage and Power Electronics New Business: Canadian Solar has established distribution networks in key active residential storage regions such as North America, Europe, and Japan. The company is also expanding into new business areas, such as power electronics, to create diversified value and additional profit sources. For example, in June 2024, Canadian Solar signed an agreement with D.R. Horton, the largest residential real estate developer in the U.S., to provide solar and storage products, including high-efficiency PV modules and the EP Cube residential storage system, for communities in California.
Canadian Solar further predicts that its performance in the second half of the year will be better than in the first half.
Source：Catch Carbon
