Financial Statements Schedule I

12 Months Ended

Dec. 31, 2011

Appendix 1

Major Subsidiaries of CSI

The following table sets forth information concerning CSI's major subsidiaries:

Subsidiary	Place and date of Incorporation			Principal Activity

CSI Solartronics(Changshu) Co., Ltd.	PRC November 23, 2001	100	%	Developing solar power project
CSI Solar Technologies Inc.	PRC August 8, 2003	100	%	Research and developing solar modules
CSI Solar Manufacture Inc.	PRC January 7, 2005	100	%	Production of solar modules
CSI Solar New Energy (Suzhou) Co., Ltd.	PRC December 7, 2005	100	%	Production of solar modules
Canadian Solar Manufacturing (Luoyang) Inc.	PRC February 24, 2006	100	%	Manufacture of solar modules, ingots and wafers
Canadian Solar Manufacturing (Changshu) Inc.	PRC August 1, 2006	100	%	Production of solar modules
CSI Cells Co., Ltd.	PRC August 23, 2006	100	%	Manufacture of solar cells
Canadian Solar (USA) Inc.	USA June 8, 2007	100	%	Sales and marketing of modules
CSI Project Consulting GmbH	Germany May 26, 2009	70	%	Developing solar power project
Canadian Solar Japan K.K.	Japan June 21, 2009	90.67	%	Sales and marketing of modules
Canadian Solar Solutions Inc.	Canada June 22, 2009	100	%	Developing solar power project
CSI Solar Power (China) Inc.	PRC July 7, 2009	100	%	Investment holding
Canadian Solar EMEA GmbH	Germany August 21, 2009	100	%	Sales and marketing of modules
Canadian Solar Manufacturing (Ontario) Inc.	Canada June 30, 2010	100	%	Production of solar modules
Canadian Solar (Australia) Pty., Ltd.	Australia February 3, 2011	100	%	Sales and marketing of modules
Canadian Solar International Ltd.	Hong Kong March 25, 2011	100	%	Sales and marketing of modules
Canadian Solar O&M (Ontraio) Inc.	Canada May 10, 2011	100	%	Developing solar power project
SunE Sky GP First Light III Ltd.	Canada May 24, 2011	100	%	Developing solar power project
SunE Sky First Light III LP	Canada May 24, 2011	100	%	Developing solar power project
CSI-Cenergy Holdings, LLC	USA July 27, 2011	62.5	%	Developing solar power project
Suzhou Sanysolar Materials Technology Co., Ltd.	PRC August 17, 2011	80	%	Production of solar module materials
Canadian Solar South East Asia Pte., Ltd.	Singapore September 19, 2011	100	%	Sales and marketing of modules

Additional
Information—Financial Statements Schedule I

Canadian Solar Inc.

Schedule I has been provided pursuant to the requirements of Rule 12-04(a) and 4-08(e)(3) of Regulation S-X, which require condensed financial information as to financial position, changes in financial position and results of operations of a parent company as of the same dates and for the same periods for which audited consolidated financial statements have been presented as the restricted net assets of Canadian Solar Inc.'s consolidated and unconsolidated subsidiaries not available for distribution to Canadian Solar Inc. as of December 31, 2011 of $354,035,695, exceeded the 25% threshold.

These financial statements have been prepared in conformity with accounting principles generally accepted in the United States except that the equity method has been used to account for investments in subsidiaries.

Financial

Information of Parent Company

Balance Sheets

	December 31, 2010

	(In U.S. dollars, except share and per share data)
ASSETS
Current assets:
Cash and cash equivalents		17,834,643		7,924,686
Restricted cash		31,626,334		5,731,365
Accounts receivable, net of allowance for doubtful accounts of $6,080,501 and $871,385 at December 31, 2010 and 2011, respectively		108,939,196		9,325,500
Inventories		30,423,199		12,824,582
Advances to suppliers, net of allowance for doubtful accounts of $17,511 and $6,059,306 at December 31, 2010 and 2011, respectively		4,069,236		—
Amounts due from related parties		108,899,314		85,731,327
Deferred tax assets		1,723,766		1,279,033
Prepaid expenses and other current assets		9,411,569		3,011,995

Total current assets		312,927,257		125,828,488
Advances to suppliers, net of allowance for doubtful accounts of nil and $11,365,975 at December 31, 2010 and 2011, respectively		13,946,324		—
Investment in subsidiaries		422,256,208		399,437,561
Deferred tax assets		9,648,202		9,708,590
Amount due from related parties		—		150,000,000
Other non-current assets		5,801,542		14,972,773

TOTAL ASSETS		764,579,533		699,947,412

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable		10,087,952		4,025
Amounts due to related parties		160,239,600		177,769,708
Other current liabilities		20,574,458		11,323,481

Total current liabilities		190,902,010		189,097,214
Accrued warranty costs		26,984,958		32,401,893
Convertible notes		905,816		950,301
Liability for uncertain tax positions		11,460,330		11,564,233

TOTAL LIABILITIES		230,253,114		234,013,641

Equity:
Common shares—no par value: unlimited authorized shares, 42,893,044 and 43,155,767 shares issued and outstanding at December 31, 2009 and 2010, respectively		501,145,991		502,402,939
Additional paid-in capital		(57,392,283	)	(53,331,445	)
Retained earnings(Accumulated deficit)		62,110,767		(28,693,433	)
Accumulated other comprehensive income		28,461,944		45,555,710

Total equity		534,326,419		465,933,771

TOTAL LIABILITIES AND EQUITY		764,579,533		699,947,412

Financial

Information of Parent Company

Statements of Operations

	Years Ended December 31

	2009			2010			2011
	(In U.S. dollars, except share and per share data)
Net revenues		602,999,324			1,248,400,119			829,016,524
Cost of revenues		591,746,362			1,201,713,356			792,643,306

Gross profit		11,252,962			46,686,763			36,373,218

Operating expenses:
Selling expenses		8,510,250			10,057,347			10,411,256
General and administrative expenses		17,258,546			13,355,609			13,461,891
Research and development expenses		664,102			792,509			1,255,945

Total operating expenses		26,432,898			24,205,465			25,129,092

Profit (loss) from operations		(15,179,936	)		22,481,298			11,244,126
Other income (expenses):
Interest expense		(140,314	)		(296,678	)		(267,979	)
Interest income		2,153,462			933,372			474,886
Investment loss		—			(3,000,000	)		—
Foreign exchange gain		4,281,909			830,602			3,261,933

Profit (loss) before income taxes and equity in earnings of subsidiaries		(8,884,879	)		20,948,594			14,712,966
Income tax expense		(1,576,793	)		(9,956,513	)		(6,742,827	)
Equity in earnings(loss) of subsidiaries		33,107,556			39,576,838			(98,777,339	)

Net Income (loss)		22,645,884			50,568,919			(90,804,200	)

Financial

Information of Parent Company

Statements of Cash Flows

	Years Ended December 31,

	2009			2010			2011
	(In U.S. dollars)
Operating activities:
Net Income (loss)		22,645,884			50,568,919			(90,804,200	)
Depreciation and amortization		5,450			5,888			5,864
Allowance for doubtful debts		8,208,800			(7,327,386	)		5,829,275
Investment loss		—			3,000,000			—
Amortization of discount on debt		35,638			39,816			44,485
Equity in earnings (loss) of subsidiaries		(33,107,556	)		(39,576,838	)		98,774,339
Share-based compensation		5,436,350			3,876,671			4,060,838
Changes in operating assets and liabilities:
Inventories		(29,306,391	)		2,140,423			17,598,617
Accounts receivable		(105,141,401	)		37,753,416			99,826,223
Amounts due from related parties		(9,102,961	)		(16,299,621	)		(126,832,013	)
Advances to suppliers		(7,248,785	)		2,752,935			11,973,762
Other current assets		(327,630	)		(4,195,539	)		6,399,566
Other non-current assets		—			(5,786,798	)		(9,177,091	)
Accounts payable		6,026,101			3,937,109			(10,083,933	)
Advances from customers		1,713,862			130,350			(216,370	)
Amounts due to related parties		139,080,262			(23,827,298	)		17,530,108
Accrued warranty costs		5,618,662			11,874,837			5,416,935
Other current liabilities		3,900,397			10,848,840			(9,034,605	)
Liability for uncertain tax positions		2,001,087			755,415			103,902
Deferred taxes		(3,213,988	)		392,598			384,345

Net cash provided by operating activities		7,223,781			31,063,737			21,800,047

Investing activities:
Decrease (increase) in restricted cash		(150,000	)		(31,476,334	)		25,894,969
Investment in subsidiaries		(74,120,415	)		(45,851,545	)		(75,955,691	)
Purchases of property, plant and equipment		(3,497	)		(1,172	)		—

Net cash used in investing activities		(74,273,912	)		(77,329,051	)		(50,060,722	)

Financing activities:
Proceeds from issuance of common shares		103,349,924			—			—
Issuance costs paid for common shares offering		(538,581	)		—			—
Proceeds from exercise of stock options		674,424			823,560			1,256,948

Net cash provided by financing activities		103,485,767			823,560			1,256,948

Effect of exchange rate changes		210,504			13,340,647			17,093,770

Net increase (decrease) in cash and cash equivalents		36,646,140			(32,101,107	)		(9,909,957	)
Cash and cash equivalents at the beginning of the year		13,289,610			49,935,750			17,834,643

Cash and cash equivalents at the end of the year		49,935,750			17,834,643			7,924,686

Supplemental disclosure of cash flow information:
Interest paid		104,676			296,678			223,495
Income taxes paid		1,680,672			5,204,641			13,575,821

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

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