Canadian Solar Inc. (SH688472), a leading global photovoltaic (PV) module and large-scale energy storage company, announced on the evening of November 30th that it plans to jointly establish a joint venture with its controlling shareholder to restructure its US market business. The joint venture will operate local PV cell/module and energy storage businesses, and will also transfer overseas energy storage plants, PV wafer slicing plants, and cell plants. The listed company will retain some of its continued revenue rights. Canadian Solar explained that the US is currently the world's second-largest PV market with a mature electricity market mechanism. Furthermore, the energy storage business, which is synergistic with PV, has a clear business model, high returns on investment, and is in a period of rapid growth due to its ability to participate in multiple services. To ensure the company's long-term participation in the US market, guarantee normal business operations, and reduce operational risks, the company plans to adjust its US market business with its controlling shareholder, Canadian Solar Inc. (a US-listed company registered in Canada, hereinafter referred to as "CSIQ").

The transaction plan shows that the listed company plans to establish two new joint ventures, M and N, with CSIQ holding 24.9% of the shares and CSIQ holding 75.1%. Company M will engage in the US photovoltaic business, including operating US photovoltaic cell and module factories; Company N will engage in the US energy storage business, including operating US manufacturing plants for lithium iron phosphate energy storage cells, battery packs, and DC energy storage systems.

Companies M and N will begin operations by leasing some of CSI's overseas assets. Considering the uncertainty surrounding the acceptance and commissioning of these leased assets, the company will make reasonable estimates of rental income in its 2026 annual related-party transactions. The company will also consider new investments, asset acquisitions, or the introduction of qualified third-party overseas investors at appropriate times.

Simultaneously, the company plans to restructure its manufacturing plants outside the US but supplying the US, including the already completed overseas photovoltaic wafer slicing plant THX1, the under-construction overseas energy storage plant SSTH, and the overseas battery plant GNCM, through equity transfer. CSIQ will hold 75.1% and CSI 24.9%. The company stated that through this arrangement, it will receive a one-time equity transfer consideration and will enjoy the continued equity returns of the 24.9% stake in the subsequent US business, as well as recover its initial investment.

The total appraised value of the target assets involved in this equity transfer is RMB 469 million. Therefore, the transaction amount corresponding to the 75.1% equity stake in this transfer is determined to be RMB 352 million.

According to the development plans of the company and CSIQ, CSIQ will focus on the production, sales, and service of photovoltaic modules and energy storage systems in the US market, paying attention to and investing resources in developing customers in the US public utilities, power companies, and large-scale industrial and commercial projects, focusing on meeting the energy transition needs of the US. The company will focus on module, energy storage product, and system integration business in non-US regions globally, including Europe, Latin America, Asia, and the Middle East, strengthening its competitive advantage in non-US markets.

In addition, the company plans to provide its controlling shareholder, CSIQ, with a counter-guarantee of no more than RMB 44.631 billion (or equivalent foreign currency) to support CSIQ's performance and financing guarantees provided to Canadian Solar and its subsidiaries.

It is projected that the total amount of routine related-party transactions between the company and its related parties (mainly its controlling shareholder, Canadian Solar Inc., and its subsidiaries) in 2026 will not exceed RMB 5.527 billion, a decrease of approximately 40% compared to the projected total in 2025. This decrease is primarily due to business adjustments and a reduction in non-essential related-party transactions. The actual total amount of related-party transactions from January to October 2025 was RMB 2.648 billion, accounting for less than 50% of the full-year projected amount.

As of press time, Canadian Solar's stock price fell by more than 4%, temporarily trading at RMB 16.45 per share, with a total market capitalization of approximately RMB 60.6 billion.