Canadian Solar missed its Q3 2024 module shipment guidance to report 8.4 GW
Operating income of RMB 12.2 billion during the reporting quarter represented a 6.1% YoY decline
The management attributes the drop to the decline in ASPs of solar panels and the drop in component sale prices
The high-priced North American market accounted for more than 30% of the solar module shipments of Canada-based solar PV manufacturer Canadian Solar in Q3 2024 out of the total shipments of 8.4 GW. From January to September this year, the company achieved total module shipments of 22.9 GW.
The management said its priority remains ‘profit first’ to ensure the profitability of the module business. The Q3 shipments of 8.4 GW went up by 2.4% month-on-month (MoM); however, it missed the 9.0 GW to 9.5 GW shipment guidance for the quarter (see Canadian Solar Exceeds Q2 2024 Shipment Guidance; Cuts FY 2024 Forecast).
In the energy storage business, its 9M 2024 shipments reached 4.4 GWh, out of which 1.8 GWh were shipped in Q3. The segment achieved rapid growth in its net profits compared with the second quarter, making an outstanding contribution to the company's overall performance in the third quarter, stated Canadian Solar.
Operating income of RMB 12.2 billion ($1.71 billion) in the 3rd quarter contributed to RMB 34.18 billion ($4.80 billion) during the initial 9 months of this year, representing a 6.1% year-on-year (YoY) decline. The 9M operating income itself declined by 12.63% YoY.
Canadian Solar blames it on the decrease in the ASPs of solar panels as well as the expected decline in component sale prices.
Its net profit for the initial 9 months, RMB 1.95 billion ($274 million), went down by 31.17% YoY from RMB 2.84 billion during the same time previous year.
In Q3, the net profit of RMB 715.6 million ($100.49 million) narrowed by 21.99% compared to Q3 2023. However, the management said it achieved sequential growth for 3 consecutive quarters, thanks to its excellent overseas channel and international spread.
Nevertheless, the company increased its R&D investment in Q3 by 4.46% to RMB 216 million ($30.33 million). During the reporting 9 months of this year, the same totaled RMB 639 million ($90 million), a 31.62% YoY increase. As of September 30, 2024, it had applied for 4,761 patents and currently maintains 2,242 valid major patents.
Currently, Canadian Solar is embroiled in a patent infringement war for TOPCon technology with Trinasolar. Now, it is one among the 5 tier I manufacturers that the American manufacturer First Solar is pursuing for TOPCon patent infringement (see QoQ Drop In Sales For First Solar In Q3 2024; Lowers Annual Guidance).