Canadian Solar's CSI Solar Names Co-founder Zhang Hanbing as President; Storage Revenue Share Exceeds Solar Modules for First Time

September 19 — Atess Solar Power Group announced that Zhuang Yan has resigned as Director and President due to retirement and personal reasons. He is expected to be succeeded by co-founder Zhang Hanbing.

Zhuang Yan served Atess for 17 years. After stepping down from his group-level role, he will continue to serve as Chairman of Shenzhen Wenchuang Innovation Technology Co., Ltd., a subsidiary focused on residential energy storage. Several months earlier, the controlling shareholder, Canadian Solar Inc., also completed a management reshuffle, with founder Qu Xiaohua transitioning to Executive Chairman and Chief Technology Officer.

This is one of the more significant personnel changes in the industry recently. For Atess itself, the move is noteworthy because the company is in the midst of optimizing and restructuring its business portfolio.

In the first half of 2026, Atess sold 6.1 GWh of large-scale energy storage systems, a year-over-year increase of 103.3%. Energy storage revenue accounted for 44.26% of total revenue, surpassing solar modules for the first time. While modules remain an important business, the company is no longer relying solely on module shipments to drive growth. The shift of energy storage from an early-stage investment to a central revenue component means the management team must simultaneously handle manufacturing, system integration, project delivery, and overseas markets.

The market is now watching to see how the company's transformation and upgrade will unfold.

I. From Group Operations to Residential Storage: Management Focus Aligns with New Growth Drivers

Zhuang Yan joined Atess in 2009 and was responsible for global sales and marketing for an extended period. He served as Chief Commercial Officer, President and Chief Operating Officer, and also as Acting CEO. Over 17 years, Atess evolved from a solar module manufacturer into a global energy company, with Zhuang Yan playing a key role in its international expansion. After resigning as President, he will continue to lead Wenchuang Innovation, shifting his focus to residential energy storage.

Residential storage and large-scale storage serve different customers, products, and service models. Large-scale projects are typically procured by energy companies, project developers, or power-related institutions, emphasizing system solutions, grid-connection capabilities, and long-term operations and maintenance. Residential storage targets household users and distribution channels, where installation convenience, product experience, and after-sales responsiveness drive sales. Residential storage is therefore not simply a scaled-down version of large-scale storage; it relies more heavily on branding, channel management, and local service.

Atess already has an established foundation in residential storage. In 2025, residential energy storage revenue reached 628 million yuan, with a gross margin of 46.08%, and the business turned profitable. While residential storage remains small relative to the company's overall scale, its higher gross margin compared to large-scale storage indicates that product sales and channel operations can provide revenue streams distinct from large-scale projects. Zhuang Yan's long-accumulated experience in overseas customer and market relationships will now need to be applied to residential storage channel expansion, product sales, and local service efficiency.

Co-founder Zhang Hanbing has long been involved in global market operations and currently serves as Global Vice President of Marketing and Chief Sustainability Officer. In the first half of 2026, nearly 90% of Atess's module shipments were overseas, and its energy storage business is also expanding into markets such as Europe. Having someone familiar with global markets lead group operations aligns with the company's continued reliance on overseas business growth.

The President's role requires coordination not only of sales but also of R&D, procurement, production, project delivery, and capital allocation. Energy storage involves more engineering stages than standard module sales, placing higher demands on cross-departmental management.

II. Energy Storage: From Long-Term Investment to Primary Revenue Source

Atess's energy storage strategy did not begin with the recent market boom. Company records show that the energy storage business team was formed around 2013. At that time, competition in the solar industry was concentrated on module costs, capacity, and shipments, and the energy storage market had not yet reached its current scale. Atess accumulated team and product experience early on. As power systems' demand for peak shaving, frequency regulation, and renewable energy integration increased, energy storage gradually became an independent business segment.

In 2025, Atess's energy storage revenue reached 10.847 billion yuan, up 11.39% year-over-year, exceeding 10 billion yuan for the first time, with a gross margin of 28.6%. Large-scale and commercial & industrial (C&I) storage revenue was 10.219 billion yuan, accounting for over 90% of total storage revenue, with a gross margin of 27.53%. Residential storage revenue was 628 million yuan, with a gross margin of 46.08%.

The business structure shows that energy storage's current scale is primarily driven by large-scale projects, while residential storage is in a phase of smaller scale but higher margins. The two segments target different customers and channels, and operating them in combination can reduce the company's reliance on a single energy storage scenario.

In the first half of 2026, large-scale energy storage system sales reached 6.1 GWh, up 103.3% year-over-year, and energy storage revenue accounted for 44.26% of total revenue, surpassing solar modules. The gross margin for large-scale storage was 20.9%, compared to 8.63% for modules in the same period.

The revenue share reversal reflects a substantive shift in Atess's business重心. The gross margin gap indicates that energy storage currently contributes more to profitability than modules. While the overall storage gross margin for 2025 and the large-scale storage gross margin for the first half of 2026 are calculated on different bases, both sets of data point to energy storage having become a significant profit source.

In the first half of 2026, Atess reported operating revenue of 12.784 billion yuan, down 39.27% year-over-year; net profit attributable to shareholders was 300 million yuan, down 59.02%; and non-GAAP net profit was a loss of 253 million yuan. Amid industry supply-demand adjustments and price competition, the company adopted a "volume-profit balance" strategy, optimizing its sales structure and market布局 to reduce low-value competition.

Ultimately, the decline in module and system shipments, increased fixed cost amortization, rising upstream material costs for energy storage, and the transition period for U.S. business adjustments all affected current performance. However, the changes in the module business indicate that Atess is reallocating its resources.

Module manufacturing, global customer relationships, and sales networks can still provide supply chain experience and market access for energy storage. However, module prices are heavily influenced by industry supply and demand, while energy storage can extend product sales into system solutions and project services. The relationship between the two businesses is gradually shifting from simple product supply to synergy in manufacturing, customer relationships, and project capabilities. Whether the company's proactive reduction of low-return shipments can improve operational quality will depend on whether cost control and product mix changes are reflected in profits.

Furthermore, the nature of the energy storage business explains the capability requirements behind revenue growth. Atess has invested in LFP battery cells, DC storage systems, and power conversion systems, building R&D and manufacturing capabilities spanning cells, PACKs, PCS, EMS, and system integration. It can also provide project design, equipment supply, and long-term O&M.

Modules are typically delivered as standardized products, while energy storage systems require combining batteries, power conversion equipment, and energy management systems, with design and integration tailored to project requirements. Atess is involved in a broader range of activities, expanding its revenue sources. Correspondingly, system design and project management capabilities have become part of its operations.

III. Global Projects and Manufacturing Footprint Determine Energy Storage's Growth Potential

At present, Atess's overseas energy storage expansion has extended from its established North American market to Europe.

The company signed a supply agreement with UK-based Drax Group to provide a total of 420 MWh of energy storage systems for two UK projects, serving grid peak shaving, frequency regulation, and renewable energy integration. It also partnered with a subsidiary of Switzerland's Axpo to enter the Calabria region in southern Italy. These two projects target different countries and power markets, reflecting Atess's need to provide system solutions based on local grid demand, project rules, and customer requirements, rather than offering a single product for all markets.

As of May 2026, Atess Energy Storage Technology had an order backlog of $3.5 billion, including long-term service agreements. As of the end of the first half of 2026, cumulative global deliveries of large-scale energy storage systems exceeded 23 GWh. The order backlog reflects customer demand reserves, while cumulative deliveries record the company's completed project operations.

Taken together, Atess's energy storage business already has an operational chain from market development to system delivery. The company's 2026 energy storage system shipment guidance is 14 GWh to 17 GWh. With 6.1 GWh sold in the first half, full-year performance will depend on project scheduling and delivery arrangements in the second half.

Product updates and overseas manufacturing布局 are two key levers for the company to adapt to local market demands. Atess has launched next-generation energy storage systems such as FlexBank and SolBank 4.0, tailored for different markets and application scenarios. It is also expanding overseas manufacturing bases to improve supply chain flexibility and delivery stability.

As is well known, large-scale energy storage projects often involve local certifications, grid connection standards, and supply requirements. Product configuration and manufacturing location can affect project costs and delivery efficiency. Stronger localization capabilities help shorten supply chain response times but also require the company to coordinate procurement, production, and service networks.

The company's arrangements for solar capacity projects also reflect changes in investment pace. Atess has postponed construction of several projects originally planned for completion by the end of next year: the 30 GW ingot pulling project in Hohhot, the second phase of the 5 GW Suqian cell project, and a 5 GW high-efficiency module and cell production R&D training base project. The reason is that changes in industry supply-demand dynamics and module prices require a reassessment of new capacity. Postponing these projects frees up capital and management resources for business arrangements with clearer returns.

It is evident that Atess's operational tasks have expanded beyond simply scaling up manufacturing. They now include determining which links are worth investing in, which markets are suitable for local production, and how to allocate resources between modules and energy storage.

Within the current energy storage structure, large-scale storage contributes the majority of revenue, relying on project development, system integration, and volume delivery. Residential storage is smaller in scale but already profitable, with its operational focus on channels, product experience, and after-sales service.

The former helps the company enter the power system-level market, while the latter extends its reach to end-user households. Both segments share the brand, R&D, and overseas market experience, but require different sales and service systems. Atess's strengthened focus on the residential storage platform is precisely aimed at expanding energy storage growth beyond large-scale projects.

For Atess, future operational performance will be reflected in the market coverage of energy storage products, overseas delivery efficiency, profit contributions from different business segments, and whether resource allocation matches market returns. Atess is transitioning from a global solar company primarily focused on module manufacturing and sales to an energy company simultaneously operating energy storage products, system projects, and end-user channels. This leadership change may mark a milestone in accelerating the realization of its operational results.

Source: Songguo Finance Original title: Atess Changes Leadership, Energy Storage Business Goes All Out