MIRA INFORM REPORT

Report Date :

24.02.2014

IDENTIFICATION DETAILS

Name :	CANADIAN SOLAR INTERNATIONAL LTD
Registered Office :	Room 1802, 18/F., Hopewell Centre, 183 Queen’s Road East, Wanchai
Country :	Hong Kong
Date of Incorporation :	25.03.2011
Com. Reg. No.:	58139273
Legal Form :	Private Limited Company
Line of Business :	Importer and Exporter of All kinds of solar energy products
No. of Employees :	5

NOTES:

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ECGC Country Risk Classification List – June 30^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
Hong Kong	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Hong Kong - ECONOMIC OVERVIEW

Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, it again faces a possible slowdown as exports to the Euro zone and US slump. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 7.8% of total system deposits in Hong Kong by the end of 2011, an increase of over 59% since the beginning of the year. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's exports by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 28 million in 2011, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2011 mainland Chinese companies constituted about 43% of the firms listed on the Hong Kong Stock Exchange and accounted for about 56% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Growth slowed to 5% in 2011. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly in 2010 and inflation to rise 5.3% in 2011. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.

Source : CIA

Company name

CANADIAN SOLAR INTERNATIONAL LTD

ADDRESS

Room 1802, 18/F., Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong.

PHONE: 2528 1286

FAX: 2528 1913

MANAGEMENT

Managing Director: Mr. Michael George Potter

SUMMARY

Incorporated on: 25th March, 2011.

Organization: Private Limited Company.

Capital: Nominal: HK$10,000,000.00

Issued: HK$10,000,000.00

Business Category: Importer and Exporter.

Group Turnover: US$1,898,922,000 (Year ended 31-12-2011)

Employees: 5.

Main Dealing Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Banking Relation: Satisfactory.

Company name

CANADIAN SOLAR INTERNATIONAL LTD

ADDRESS

Registered Head Office:-

Room 1802, 18/F., Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong.

Holding Company:-

Canadian Solar Inc., Canada.

Associated Companies:-

Canadian Solar (Australia) Pty.Ltd., Australia.

Canadian Solar (USA) Inc., US.

Canadian Solar EMEA GmbH, Germany.

Canadian Solar Japan K.K., Japan.

Canadian Solar Manufacturing (Changshu) Inc., China.

Canadian Solar Manufacturing (Luoyang) Inc., China.

Canadian Solar Manufacturing (Ontario) Inc., Canada.

Canadian Solar Manufacturing (Suzhou) Inc., China.

Canadian Solar O&M (Ontario) Inc., Canada.

Canadian Solar Solutions Inc., Canada.

Canadian Solar South East Asia Pte.Ltd., Singapore.

CSI Cells Co. Ltd., China.

CSI Project Consulting GmbH, Germany.

CSI Solar Manufacture Inc., China.

CSI Solar New Energy (Suzhou) Co. Ltd., China.

CSI Solar Power (China) Inc., China.

CSI Solar Technologies Inc., China.

CSI Solartronics (Changshu) Co. Ltd., China.

CSI-Cenergy Holdings LLC., US.

SunE Sky First Light III LP, Canada.

SunE Sky GP First Light III Ltd., Canada.

Suzhou Sanysolar Materials Technology Co. Ltd., China.

BUSINESS REGISTRATION NUMBER

58139273

COMPANY FILE NUMBER

1579177

MANAGEMENT

Managing Director: Mr. Michael George Potter

CAPITAL

Nominal Share Capital: HK$10,000,000.00 (Divided into 10,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$10,000,000.00

SHAREHOLDER

(As per registry dated 25-03-2012)

Name	No. of shares
Canadian Solar Inc. 545 Speedvale Avenue West, Guelph, Ontario, N1K 1E6, Canada.	10,000,000 ========

DIRECTORS

(As per registry dated 25-03-2012)

Name (Nationality)	Address
Michael George POTTER	Room No. 2101, Building 5, Yanlord Riverside Gardens, Lane 388, Fu Rong Jiang Road, Shanghai 200051, China.
QU Xiaohua	199 Lushan Road, SND, Suzhou, Jiangsu Province, China.

SECRETARY

(As per registry dated 25-03-2012)

Name	Address	Co. No.
Hong Kong Corporation Secretaries Ltd.	Unit 1001, 10/F., Infinitus Plaza, 199 Des Voeux Road Central, Hong Kong.	1192442

HISTORY

The subject was incorporated on 25th March, 2011 as a private limited liability company under the Hong Kong Companies Ordinance.

Apart from these, neither material change nor amendment has been ever traced and noted.

OPERATIONS

Activities: Importer and Exporter.

Lines: All kinds of solar energy products.

Employees: 5.

Commodities Imported: China, Europe, etc.

Markets: China, other Asian countries, Europe, North America, etc.

Group Turnover: US$ 630,961,000 (Year ended 31-12-2009)

US$1,495,509,000 (Year ended 31-12-2010)

US$1,898,922,000 (Year ended 31-12-2011)

Terms/Sales: As per contracted.

Terms/Buying: Various terms.

FINANCIAL INFORMATION

Nominal Share Capital: HK$10,000,000.00 (Divided into 10,000,000 shares of HK$1.00 each)

Issued Share Capital: HK$10,000,000.00

Group Net Income (Loss): US$22,778,000 (Year ended 31-12-2009)

US$50,828,000 (Year ended 31-12-2010)

(US$90,903,000) (Year ended 31-12-2011)

Profit or Loss: Group made a loss in 2011.

Condition: Business is under development.

Facilities: Making fairly active use of general banking facilities.

Payment: Met trade commitments as required.

Commercial Morality: Satisfactory

Banker: The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

Standing: Satisfactory.

GENERAL

Canadian Solar International Ltd. is a wholly-owned subsidiary of Canadian Solar Inc. [including associated companies are referred to Group] which is a Canada-based and registered firm.

The Group designs, develops, and manufactures solar wafers, cells and solar module products that convert sunlight into electricity for a variety of uses. It was incorporated in Canada and conduct most of its manufacturing operations in China. Its products include a range of standard solar modules built to general specifications for use in a wide range of residential, commercial and industrial solar power generation systems. It also designs and produces specialty solar modules and products based on its customers’ requirements. Specialty solar modules and products consist of customized solar modules that its customers incorporate into their own products, such as solar-powered bus stop lighting, and complete specialty products, such as portable solar home systems and solar-powered car battery chargers. It also sells its products under its “CanadianSolar” brand name and to OEM customers under their brand names. It also sells solar system kits and implement solar power development projects.

Its product lines range from modules of medium power, to high efficiency, high-power output mono-crystalline modules, as well as a range of specialty products. It currently sells its products to a diverse customer base in various markets worldwide, including Germany, Spain, Italy, France, the Czech Republic, the United States, Canada, China, Japan and India, among others. It sells its standard solar modules to distributors and system integrators, as well as to solar projects.

The Group has had a main factory in Changshu known as CSI Changshu Manufacturing. CSI Changshu Manufacturing rents approximately 31,119 square meters of floor area in Changshu, including 13,889 square meters for manufacturing facilities under a lease effective from 1st June, 2011 to 31st May, 2012, 8,852 square meters for manufacturing facilities under a lease effective from 1st October, 2011 to 30th September, 2012, and 8,378 square meters for manufacturing facilities under a lease effective from 1st April, 2010 to 31st March, 2013.

Another factory is CSI Luoyang Manufacturing. CSI Luoyang Manufacturing holds a land use rights certificate for approximately 35,345 square meters of land in Luoyang (Phase I), on which it has constructed a manufacturing facility for module manufacturing and an office building. The floor area of all workshops and office buildings in Phase I is approximately 6,761 square meters. The property ownership certificate was granted in June 2008. In 2008, CSI Luoyang Manufacturing obtained the land use rights for approximately 79,685 square meters of adjacent land (Phase II), on which it has constructed wafer manufacturing facilities. The floor area of Phase II is 30,071 square meters. It expects to receive the property ownership certificate upon passing the required inspection after the completion of construction.

The Group also has had other factories in China.

As of 31st December, 2011, the Group had:-

· 1.5 GW of total annual solar cell manufacturing capacity in China.;

· 2.1 GW of total annual solar module manufacturing capacity, 218 MW of which is located in Ontario, Canada with the balance located in China.; &

· And 228 MW of total annual ingot and wafer manufacturing capacity in China.

The Group’s net revenues increased by US$403.4 million, or 27.0%, from US$1,495.5 million in 2010 to US$1,898.9 million in 2011. Increase in net revenues from non-European markets contributed US$365.9 million to increase in our total net revenues in 2011. Its net revenues increased primarily due to increased shipments from 803.5 MW in 2010 to 1,322.5 MW in 2011, an increase of 64.6%, offset by decreased average selling prices of our standard solar modules from US$1.80 per watt in 2010 to US$1.34 per watt in 2011.

Its shipments to European markets increased by 216.4 MW from 665.9 MW in 2010 to 882.3 MW in 2011. And its shipments to non-European markets increased by 302.7 MW from 137.6 MW in 2010 to 440.3 MW in 2011. The increase in shipments in non-European markets primarily came from China, the United State and India among others as it increased its marketing efforts and expanded its customer base in these markets.

As a result of the foregoing, the net income attributable to Canadian Solar Inc. decreased by US$141.4 million, or 279.6%, from US$50.6 million in 2010, to negative US$90.8 million in 2011.

The subject is fully supported by the Group. History in Hong Kong is just over a year.

On the whole, since the history of the subject is short, consider it good for normal business engagements on L/C basis.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.16
UK Pound	1	Rs.103.44
Euro	1	Rs.85.27

INFORMATION DETAILS

Report Prepared by :

MNL

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