Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
CANADIAN SOLAR INC.
CSI Solar Co., Ltd. (“CSI Solar”),
a majority-owned subsidiary of Canadian Solar Inc. (“Canadian Solar”) with its shares listed on the Shanghai Stock Exchange
(“SSE”)’s Sci-Tech Innovation Board, has filed with the SSE its 2025 full-year earnings forecast announcement (the “2025
Full Year Earnings Forecast Announcement”). Currently, Canadian Solar owns approximately 64% of CSI Solar.
Exhibit 99.1 provides an English translation of the 2025 Full
Year Earnings Forecast Announcement.
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Exhibit 99.1
| SSE Stock Code:
688472 | | SSE Stock Abbreviation: CSI Solar |
CSI
Solar Co., Ltd.
2025
Full Year Earnings Forecast Announcement
| The board of directors of CSI Solar Co., Ltd. (the “Company”) and all members of the board of directors guarantee that the information of this public announcement contains no misrepresentations, misleading statements or material omissions, and they are legally responsible for the truthfulness, accuracy and completeness of the information contained herein. |
1. Earnings
Forecast for the Current Reporting Period
(1) Period
Covered by the Earnings Forecast
January 1,
2025 to December 31, 2025.
(2) Earnings
Forecast
1. Based
on preliminary calculations by the Company’s finance department, the expected net profit attributable to shareholders of the Company
for 2025 is between RMB 900 million and RMB 1,100 million. Compared with 2024 (as disclosed in statutory financial
statements), this represents a decrease of RMB 1,347.3502 million to RMB 1,147.3502 million, a year-on-year decrease of 60% to 51%.
2.The
expected net profit attributable to shareholders of the Company after deducting non-recurring gains and losses for 2025 is between RMB
900 million and RMB 1,100 million. Compared with 2024 (as disclosed in statutory financial statements), this represents
a decrease of RMB 1,326.4682 million to RMB 1,126.4682 million, a year-on-year decrease of 60% to 51%.
(3) This
earnings forecast has not been audited by certified public accountants.
2.
Financial Results of the Same Period in 2024
(1) Total
profit: RMB 2,579.7345 million. Net profit attributable to shareholders of the Company: RMB 2,247.3502 million. Net profit attributable
to shareholders of the Company after deducting non-recurring gains and losses: RMB 2,226.4682 million.
(2) Basic
earnings per share: RMB 0.61.
3. Principal
Reasons for the Changes in Financial Results
In
2025, the overall supply-demand imbalance in the photovoltaic industry persisted, and the industry remained at cyclical lows. Utilization
rates across the industry chain declined, compounded by international trade protection policies and significant increases in costs such
as polysilicon and silver paste. These factors further pressured the profitability of companies within the photovoltaic industry.
Amid
intensifying industry competition and increased external uncertainties, the Company adhered to the "profit-first
principle" in its sales strategy and proactively optimized its shipment mix and delivery cadence, focusing on high-value
regions and long-term strategic customers, and steadily increasing its market share in key markets. A large volume of the
Company’s previously accumulated energy storage project pipeline and contracted backlog entered the execution and monetization
phase. The Company’s energy storage business—supported by its global brand and channel presence, integrated solutions,
and long-term service capabilities—provided strong support for maintaining a healthy level of profitability.
The
Company will continue to assume greater social responsibility through globalized supply chain operations, a customer-demand-driven approach,
and increased focus on carbon footprint management and ESG considerations. Leveraging its global cross-cultural operational capabilities,
the Company aims to create and share value for customers and the global community, upholding globalization amidst de-globalization trends.
The Company will increase its investment in research and development and further strengthen technological innovation to advance its differentiated
technology strategy. The Company will continue to strengthen its leading position in the energy storage sector, and, by actively participating
in downstream value growth opportunities, expand into emerging markets and additional application scenarios, thereby supporting sustainable
long-term development.
4. Risk Factors
This
earnings forecast is based on calculations made by the Company’s finance department using its professional judgment and has not
been audited by certified public accountants. The Company has not identified any material uncertain factors that would affect the accuracy
of the information contained in this earnings forecast.
5. Other Reminders
The
above forecasted data are preliminary. The financial data to be officially disclosed in the Company’s 2025 audited annual report
shall prevail as final. Investors are advised to take note of investment risks.
We
hereby announce the above.
Board
of Directors of CSI Solar Co., Ltd.
January 31,
2026
Safe Harbor/Forward-Looking Statements
Certain statements in this press release are forward-looking
statements that involve a number of risks and uncertainties that could cause actual results to differ materially. These statements are
made under the “Safe Harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can
identify forward-looking statements by such terms as “may”, “will”, “expect”, “anticipate”,
“future”, “ongoing”, “continue”, “intend”, “plan”, “potential”,
“prospect”, “guidance”, “believe”, “estimate”, “is/are likely to” or similar
expressions, the negative of these terms, or other comparable terminology. These forward-looking statements include, among other things,
our expectations regarding global electricity demand and the adoption of solar and battery energy storage technologies; our growth strategies,
future business performance, and financial condition; our transition to a long-term owner and operator of clean energy assets and expansion
of project pipelines; our ability to monetize project portfolios, manage supply chain fluctuations, and respond to economic factors such
as inflation and interest rates; our outlook on government incentives, trade measures, regulatory developments, and geopolitical risks;
our expectations for project timelines, costs, and returns; competitive dynamics in solar and storage markets; our ability to execute
supply chain, manufacturing, and operational initiatives; access to capital, debt obligations, and covenant compliance; relationships
with key suppliers and customers; technological advancement and product quality; and risks related to intellectual property, litigation,
and compliance with environmental and sustainability regulations. Other risks were described in Canadian Solar’s filings with the
Securities and Exchange Commission, including its annual report on Form 20-F filed on April 30, 2025. Although Canadian Solar
believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of
activity, performance, or achievements. Investors should not place undue reliance on these forward-looking statements. All information
provided in this press release is as of today’s date, unless otherwise stated, and Canadian Solar undertakes no duty to update such
information, except as required under applicable law.
Inherent Uncertainty of the Forecast
The forecast should be read in conjunction with
the assumptions and qualifications set forth herein. The forecast is based on numerous assumptions, many of which are beyond our control,
and some or all of which may not materialize.
Additionally, to the extent that the assumptions
inherent in the forecast are based upon future business decisions and objectives, they are subject to change. Although the forecast is
presented with numerical specificity and is based on reasonable expectations developed by our management, the assumptions and estimates
underlying the forecast are subject to significant business, economic, regulatory and competitive uncertainties and contingencies, many
of which are beyond the control of CSI Solar and Canadian Solar. Accordingly, the forecast is only an estimate and is necessarily speculative
in nature. It is expected that some or all of the assumptions in the forecast will not be realized and that actual results will vary from
the forecast. Such variations may be material and may increase over time. In light of the foregoing, readers are cautioned not to place
undue reliance on the forecast. The forecast should not be regarded as a representation or warranty by Canadian Solar, CSI Solar or any
other person that the forecast can or will be achieved.
PRC GAAP
CSI Solar’s financial statements were prepared
in accordance with PRC GAAP, whereas Canadian Solar’s financial statements are prepared in accordance with generally accepted
accounting principles in the United States (“U.S. GAAP”). PRC GAAP differs materially from U.S. GAAP. We have not
prepared a reconciliation of the financial statements between PRC GAAP and U.S. GAAP and has not quantified such differences.
In addition, Canadian Solar’s financial statements eliminate all intercompany transactions between Canadian Solar and its subsidiaries.
As a result, CSI Solar’s financial statements are not directly comparable to the corresponding consolidated financial performance
of Canadian Solar. Investors should consult their own professional advisors for an understanding of the differences between PRC GAAP and
U.S. GAAP and how those differences might affect the information contained in the financial statements.
No Audit or Review
The financial statements above have not been audited
or reviewed by the independent public accountants of Canadian Solar or CSI Solar. The financial statements should not be relied upon by
investors to provide the same type or quality of information as information that has been subject to an audit or review by independent
auditors.
