As a leading global photovoltaic module and large-scale energy storage company, Canadian Solar (SH688472) announced on the evening of November 30 that it plans to jointly establish joint ventures with its controlling shareholder to restructure its U.S. market operations. The new entities will manage local photovoltaic cell/module and energy storage businesses, while transferring overseas energy storage plants, photovoltaic wafer factories, and battery plants. The listed company will retain partial ongoing profit rights.
Canadian Solar explained that the U.S., currently the world's second-largest photovoltaic market, boasts a mature electricity market mechanism. Its energy storage sector, which synergizes with photovoltaics and participates in multiple services, offers clear business models and high investment returns, entering a phase of rapid expansion. To ensure long-term participation in the U.S. market, maintain normal operations, and mitigate risks, the company will adjust its U.S. business strategy in collaboration with controlling shareholder Canadian Solar Inc. (CSIQ), a Canada-registered U.S.-listed firm.
The transaction plan reveals that the listed company and CSIQ will establish two joint ventures—Company M and Company N—with the former holding 24.9% and CSIQ 75.1% stakes. Company M will operate U.S. photovoltaic businesses, including cell and module factories, while Company N will manage energy storage operations, producing lithium iron phosphate storage cells, battery packs, and DC energy storage systems.
These joint ventures will commence operations by leasing certain overseas assets from CSI. Given uncertainties in asset handover and commissioning timelines, the company will reasonably estimate rental fees in its 2026 routine related-party transactions. Future plans may include new investments, asset acquisitions, or introducing qualified third-party overseas investors.
Concurrently, the company will restructure non-U.S. manufacturing facilities supplying the American market—including operational wafer plant THX1, under-construction energy storage facility SSTH, and battery factory GNCM—via equity transfers, with CSIQ holding 75.1% and CSI retaining 24.9%. This arrangement enables a one-time equity transfer payment while securing 24.9% ongoing profit rights from U.S. operations and recouping prior investments.
The total assessed value of transferred equity amounts to 469 million yuan, with the 75.1% stake transaction set at 352 million yuan.
Under the strategic division, CSIQ will focus on U.S. photovoltaic module and energy storage system production, sales, and services, prioritizing utility-scale and commercial projects to meet America's energy transition needs. The listed company will concentrate on module, storage products, and system integration in non-U.S. markets including Europe, Latin America, Asia, and the Middle East, strengthening its global competitive edge.
Additionally, the company plans to provide CSIQ with counter-guarantees up to 44.631 billion yuan (or equivalent foreign currency) to support performance and financing guarantees for Canadian Solar and its subsidiaries.
Projected 2026 routine related-party transactions with CSIQ and affiliates will not exceed 5.527 billion yuan, marking a 40% reduction from 2025 estimates due to operational adjustments. Actual January-October 2025 transactions totaled 2.648 billion yuan, below 50% of annual projections.
At market close, Canadian Solar shares fell over 4% to 16.45 yuan per share, with a total market capitalization of approximately 60.6 billion yuan.
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