Canadian Solar strategies brand-new listing in China

Aug 10, 2020 02:55 PM ET
  • Module production huge Canadian Solar states it has seen demand for modules recuperate in the second quarter of 2020, with module shipments and also earnings for the period both going beyond guidance. The business is pressing ahead with prepare for a 2nd listing on a stock market in China as part of its strategy to deal with speeding up sector development and also market consolidation over the coming months.
Canadian Solar strategies brand-new listing in China
Image: Canadian Solar

Canadian Solar saw need for its items raise ahead of expectations in the 2nd quarter of 2020, though incomes were hit by a drop in ordinary market price and a downturn in project sales.

The firm shipped 2.9 GW of modules in Q2, a 31% boost over the previous quarter, and also exceeding the business's projection of 2.5-2.7 GW. At $696 million, web profits additionally can be found in ahead of the projection $630-680 million however dropped considerably from $826 million in the previous quarter and also $1.036 billion in Q2 2019. The firm attributed this be up to lower typical market price for modules and delays to predict implementation and sales related to the continuous influences of COVID-19. Gross profits likewise fell quarter on quarter, from $223 million in Q1 2020 to $147 million in the 2nd quarter.

" We are benefiting from a demand rebound throughout most of our markets, with our order backlog for the second half of 2020 as well as also next year already exceeding our previous expectations," claimed Canadian Solar President and COO Yan Zhuang. "While the current polysilicon supply disruption and also shortage provide a near-term obstacle, we are positioning ourselves for lasting growth."

New listing

A huge part of this long term growth positioning is the firm's prepare for a brand-new listing on a Chinese stock exchange. 2 weeks ago strategies were revealed for a listing on either the Shanghai Stock Exchange's Science and Technology Innovation Board (" STAR market") or the Shenzhen Stock Exchange's ChiNext Market.

Canadian Solar says it has started the pre-IPO procedure of raising capital and transforming part of the business to a Sino-foreign joint-stock company, as is called for by the listing policies. This investment round is anticipated to be completed by the end of September, while the listing process overall is readied to take 18-24 months.

" If effective, it [the brand-new listing] will certainly provide us greater accessibility to added, lower-cost sources of funding and allow us to grow faster each time when we believe development in the solar market and market consolidation are both readied to increase," stated Canadian Solar Chairman and CEO Shawn Qu. "In enhancement, our company believe the listing will assist us unlock value for shareholders by resolving our appraisal void about China-listed solar companies."

Qu included that the business stayed completely dedicated to its existing listing on the U.S.-based NASDAQ stock exchange.


The firm has actually slightly enhanced its assistance for full-year 2020 shipments from 10 GW to 11-12 GW. And in 2021, prep work are being created 18-20 GW in shipments. "We are motivated to see demand recoiling around the world, as more business and consumers worldwide demand sustainable source of power," Qu stated. "We expect the influence of the polysilicon supply interruption to minimize over the coming quarters as polysilicon suppliers recover their temporarily shut-down capabilities and also reboot several of the currently idled, higher-cost abilities."

Solar Installers, Manufacturers