Advanced Soltech's subsidiary in China has signed orders with ZhangZhou LaiFu Furniture Co. Ltd. and ZhangZhou YueYuan Food Co. Ltd. These apply to the installation of two solar energy plants of 0.8 and 0.43 megawatts (MW), respectively, and are estimated to generate annual revenues of approximately SEK 0.93 million, or approximately SEK 18.6 million during the agreements' 20-year term. The investments in the facilities, which will be owned by ASAB's subsidiaries, amount to approximately SEK 6.85 million. No subsidies are paid for these projects and construction is scheduled to start in the second quarter of 2021.
Advanced Soltech's CEO Max Metelius comments:
– We see a strong demand for green electricity in China and continue to bring in new customers of good quality. Today we are achieving good profitability in our projects without subsidies and our assessment is that the development for solar energy in China will be very strong for a long time to come.
In the motivation for the award in the eighth edition of the "Solar Energy Cup" it is mentioned, among other things, "The innovative business model that does not take up valuable land resources and the high reliability and quality that Advanced Soltech delivers in its installations" "Solar Energy Cup" was launched as early as 2012 and is an authority in the Chinese solar industry.
Advanced Soltechs CEO Max Metelius comments:
- Advanced Soltech is proud to contribute to the restructuring of China's energy supply in a green direction by using technologically advanced and secure solar energy installations.
Advanced Soltech's subsidiary in China, ASRE, has signed an order with Wuhu DingFeng Auto Parts Co. Ltd. The order concerns the installation of a solar energy facility of 1.2 megawatts (MW) and is expected to generate annual revenues of approximately SEK 0.98 million, or approximately SEK 19.65 million during the agreement's 20-year term. The investment in the facility, which will be owned by ASRE, amounts to approximately SEK 6.66 million and construction is scheduled to start in the fourth quarter of 2020.
Advanced Soltechs CEO Max Metelius comments:
- We are happy to present yet another good project with strong profitability completely without subsidies. We have an offer that is appreciated by the market and also contributes to benefit the climate.
About the China venture
in China ASAB operates through, its wholly owned local subsidiaries Advanced Soltech Renewable Energy (Hangzhou) Co. Ltd, ASRE and Longrui Solar Energy (Suqian) Co. Ltd. The business model consists of financing, installing, owning, and managing solar energy installations on customers' roofs in China. The customer does not pay for the plant, but instead undertakes to buy the electricity that the plant produces under a 20-year agreement. Current income comes from the sale of electricity to customers and from subsidies. The goal is to have an installed capacity of 1,000 megawatts (MW) by 2023, which is fully connected to the electricity grid by 2024.
ASAB is 50.85 % owned by Soltech Energy Sweden AB (publ), 48.85% by Soltech's Chinese partner, Advanced Solar Power Hangzhou Inc and 0.3% by several holders of preference shares.
Advanced Soltech's subsidiary in China, ASRE, has signed an order with Wuhu XinFeng Mineral Fiber Material Co Ltd. The order is for an installation of a solar energy plant of 1.2 megawatts (MW) and is estimated to generate annual revenues of approximately SEK 1.03 million, or approximately SEK 20.59 million during the agreement's 20-year term. The investment in the facility, which will be owned by ASRE, amounts to approximately SEK 6.85 million and construction is scheduled to start in the fourth quarter of 2020.
Advanced Soltech’s CEO, Max Metelius comments:
- Currently we have many ongoing negotiations with new customers which we continue to convert into good projects with high profitability completely without subsidies. Demand for our offering is solid and we believe that the market will be even stronger going forward, considering China's recently communicated new ambitious climate goals.
About the China venture
In China ASAB operates through, its wholly owned local subsidiaries Advanced Soltech Renewable Energy (Hangzhou) Co. Ltd, ASRE and Longrui Solar Energy (Suqian) Co. Ltd. The business model consists of financing, installing, owning and managing solar energy installations on customers' roofs in China. The customer does not pay for the plant, but instead undertakes to buy the electricity that the plant produces under a 20-year agreement. Current income comes from the sale of electricity to customers and from subsidies. The goal is to have an installed capacity of 1,000 megawatts (MW) by 2023, which is fully connected to the electricity grid by 2024. ASAB is 51% owned by Soltech Energy Sweden AB (publ) and 49% by Soltech's Chinese partner, Advanced Solar Power Hangzhou Inc.
Advanced Soltech's subsidiary in China, ASRE, has signed an order with WuHu YouJu Plastic Mold Co. Ltd., and an order with Anhui QianHong Household Products Co. Ltd. The orders concern the installation of a solar power plant of 0.8 megawatts (MW) and one of 0.4 megawatts (MW). They are estimated to provide a total annual revenue of approximately SEK 1.03 million, or approximately SEK 20.6 million during the agreements' 20-year term. The investments in the facilities, which will be owned by ASRE, amount to a total of apx. SEK 6.76 million and construction is scheduled to start in the fourth quarter of 2020.
Advanced Soltechs CEO Max Metelius comments:
– We see very strong demand for our offering, and we have a well functioning sales process that continues to deliver good projects to our portfolio of solar power projects. These projects show good profitability and are carried out completely without subsidies.
About the China venture
In China ASAB operates through, its wholly owned local subsidiaries Advanced Soltech Renewable Energy (Hangzhou) Co. Ltd, ASRE and Longrui Solar Energy (Suqian) Co. Ltd. The business model consists of financing, installing, owning and managing solar energy installations on customers' roofs in China. The customer does not pay for the plant, but instead undertakes to buy the electricity that the plant produces under a 20-year agreement. Current income comes from the sale of electricity to customers and from subsidies. The goal is to have an installed capacity of 1,000 megawatts (MW) by 2023, which is fully connected to the electricity grid by 2024. ASAB is 51% owned by Soltech Energy Sweden AB (publ) and 49% by Soltech's Chinese partner, Advanced Solar Power Hangzhou Inc.
Advanced Soltech's subsidiary in China, ASRE, has signed an order with WuHu HanLong Paper Co. Ltd. The order is for the installation of a solar energy plant of 1 megawatts (MW) and is estimated to generate annual revenues of approximately SEK 0.9 million, or apx. SEK 18.07 million during the agreement's 20-year term. The investment in the facility, which will be owned by ASRE, amounts to apx. SEK 6.14 million and construction is scheduled to start in the fourth quarter of 2020.
Advanced Soltechs CEO Max Metelius comments:
– Demand has returned with full force and our team in China continues to sign orders with new stable customers. This project shows good profitability and is carried out completely without subsidies.
About the China venture
In China ASAB operates through, its wholly owned local subsidiaries Advanced Soltech Renewable Energy (Hangzhou) Co. Ltd, ASRE and Longrui Solar Energy (Suqian) Co. Ltd. The business model consists of financing, installing, owning and managing solar energy installations on customers' roofs in China. The customer does not pay for the plant, but instead undertakes to buy the electricity that the plant produces under a 20-year agreement. Current income comes from the sale of electricity to customers and from subsidies. The goal is to have an installed capacity of 1,000 megawatts (MW) by 2023, which is fully connected to the electricity grid by 2024. ASAB is 51% owned by Soltech Energy Sweden AB (publ) and 49% by Soltech's Chinese partner, Advanced Solar Power Hangzhou Inc.
On 29 September 2020, Soltech Energy Sweden AB (publ) signed an agreement to acquire 60 percent of the shares in the roofing company Din Takläggare i Värmland Dalsland AB with effect from 1 October 2020. Din Takläggare has its registered office in Arvika and the company has a total of 15 employees and is estimated to have sales of SEK 35 million in 2020 with a positive operating profit of approximately 9 percent. Together with Soltech, the plan is to increase sales to a total of SEK 50 million by 2023 with good profitability.
The acquisition of Din Takläggare is a continued investment in solar energy by acquiring expertise and business in the waterproofing roof industry. In order to deliver the highest quality, it is of utmost importance to have deep expertise in roofing work when building a successful solar energy group. With Din Takläggare, we still add companies in roofing alongside NP Gruppen, Takorama and Takrekondbolagen. Soltech has an option to acquire the remaining 40 percent of the shares in Din Takläggare 2024.
Din Takläggare is a very reputable company in Värmland / Dalsland and the plan is now to gradually expand the business, while maintaining a good profit margin, from current levels of approximately SEK 35 million to approximately SEK 50 million in 2023. The increase in business volume is expected to come from organic growth in combination with that Din Takläggare adds solar energy to its product and service range. In addition, Soltech expects that synergy effects within the Group in terms of joint purchasing, warehousing & logistics, marketing, HR, finance and administration will have a positive effect on earnings. The acquisition of Din Takläggare is financed entirely from its own cash and with newly issued shares in Soltech Energy.
Stefan Ölander, CEO of Soltech Energy in a comment:
– Just like Monday's acquisition of Takrekondbolagen, Din Takläggare has a tradition of high quality and profitability. Now we will together take the company into the future by adding solar energy to their range. We look forward to a successful development together.
Håkan Wennberg, CEO of Din Takläggare in a comment:
– Almost all customers are asking for solar energy today and the decision to sell to Soltech therefore feels completely right. Now we can use our deep expertise in waterproofing roofs to, together with our sister companies, take a good share of the solar energy market in our region.
Eurocommercial Properties' very high sustainability goals puts solar energy in focus and now the company is installing solar energy at its remaining shopping centers in Sweden. Soltech Energy's subsidiary Swede Energy Power Solutions has been chosen as a partner and a total of 1,658 kWp of solar energy solutions will be installed, which is estimated to produce approximately 1,473,709 kWh / year.
Eurocommercial is one of Europe's most experienced real estate investors with shopping centers in Belgium, France, Italy and Sweden with over 130 million visits to the malls. The business is concentrated in shopping centers in attractive locations and with a long-term sustainable strategy and high goals for renewable energy. In Sweden, the goal is to get 100% electricity from renewable energy sources on both roofs and parking areas. It is a fantastic project that leads to a greatly reduced climate impact from the large facilities at the same time as Eurocommerical in Sweden gets a cost-effective solution to its energy needs.
– “With this large expansion, we will have solar cells at 100% of shopping centers in Sweden. To be able to do this together with such an experienced and serious supplier as Swede Energy should not only be an exciting journey, we also value the importance the work has for our environment, not at least locally where we have our tenants and visitors. Now the stores not only get green fossil-free electricity but also locally produced, says Patrik Sörnell, Director, Asset Management at Eurocommercial Properties.
With over 30 years of experience behind it, Swede Energy has knowledge of which constructions, elements and installations need to be made to have a future-proof plant. Everything from drawings, strength calculations, construction and engineering has been done by the solar engineers with great accuracy. Several of the shopping centers that receive solar energy on the roof have a few years on their necks and then it is extra important to take into account the strength of the roofs as all panels must load the roof. Today, with current solar panels, Eurocommercial has an annual production capacity of almost 500,000 KWh / year in Sweden. With this investment, capacity will be increased to as much as 2,000,000 KWh / year.
– “Working with the type of forces to which a roof is exposed is not something that can be taken lightly. It is both a question of personal safety in, for example in snowy winters, but also a question of the plant producing efficiently throughout its life, which is often over 20 years, says Christoffer Caesar, CEO of Swede Energy”.
More about Sweden Energy Power Solutions:
Swede Energy has over 30 years of experience in developing innovative and renewable energy plants with a unique design strategy that creates profitable and future-proof electricity production for industrial and commercial properties. www.swedeenergy.se
More about Eurocommercial:
Eurocommercial Properties (Eurocommercial) is a long-term investor and manager of mainly retail properties in Belgium, France, Italy and Sweden with assets over EUR 4 billion. The company was founded in 1991 and is a Euronext listed company with a broad shareholder base. https://www.eurocommercialproperties.com/property/sweden
On 28 September 2020, Soltech Energy Sweden AB (publ) signed an agreement to acquire 80 percent of the shares in the roofing company Takrekond i Småland AB and 100 percent of the roofing company Takrekond i Kalmar AB with access on 1 October 2020. Takrekond is headquartered in Växjö and Kalmar and the companies have a total of 15 employees and are expected to have sales of SEK 25 million in 2020 with a positive operating profit of approximately 10 percent. Together with Soltech, the plan is to increase sales to a total of SEK 55 million by 2023 with good profitability.
The acquisition of Takrekond is a continued investment in solar energy by acquiring expertise and business in the waterproofing roof industry. In order to deliver the highest quality, it is of utmost importance to have deep expertise in roofing work when building a successful solar energy group. With Takrekond in Småland and in Kalmar, we are adding two companies in roofing alongside NP Gruppen and Takorama. Soltech has an option to acquire the remaining 20 percent of the shares in Takrekond Småland 2024.
Takrekond has long been a partner of Soltech's subsidiary Takorama and the plan is now to gradually expand the business, while maintaining a good profit margin, from current levels of approximately SEK 25 million to approximately SEK 55 million in 2023. The increase in business volume is expected to come from organic growth in combination with adding solar energy to the product and service offering. In addition, Soltech expects that synergy effects within the Group in terms of joint purchasing, warehousing & logistics, marketing, HR, finance and administration will have a positive effect on earnings. The acquisition of Takrekond is financed entirely from its own cash and with newly issued shares in Soltech Energy.
Stefan Ölander, CEO of Soltech Energy in a comment:
– The Takrekond companies have a tradition of high quality and profitability. Now we will together take the companies into the future by adding solar energy to their range. In this way, we are really changing society in a sustainable direction.
Nils Jansson, CEO of Takrekondbolagen in a comment:
– We at Takrekond notice an ever-increasing demand from our customers to be able to deliver both roof and solar energy systems and have therefore, after more than 30 years of clean roofing operations, chosen to be part of the Soltech Energy Group and thereby broaden our offering with solar cells. For me and all the employees, this step feels really exciting and inspiring.
There has been great interest in taking advantage of Advanced Soltech's offer to subscribe for newly issued preference shares. In total, new shares have been subscribed for SEK 131.5 million. The purpose of the issue prior to the planned listing of Advanced Soltech's shares on First North Growth Market is to be able to take advantage of the good business opportunities that the Company now has in China. Following the issue, Soltech will own more than 50% of Advanced Soltech and will therefore continue to consolidate the company's accounts.
The terms of the issue of preference shares have been formulated with a forthcoming listing in mind. JOOL Corporate Finance AB has acted as the Company's Corporate Finance advisor in the transaction. SIP Nordic Fondkommission AB has been the organizer and Roschier Advokatbyrå AB legal advisor.
Advanced Soltech's CEO, Max Metelius comments:
- It is very gratifying to see the great interest in investing in Advanced Soltech and we welcome our new shareholders on our continued growth journey. We have a very strong order book and the capital from the issue will primarily be invested in new solar energy facilities, but we will also invest in strengthening important functions within the company prior to the listing. Work on the listing is proceeding according to plan.
Advanced Soltech's Certified Adviser is FNCA, Tel: 08-528 00 399 E-mail: info@fnca.se
About the Operations in China
The operations in China are conducted in Advanced SolTech Renewable Energy (Hangzhou) Co. Ltd, ASRE, its wholly owned local subsidiaries and in Longrui Solar Energy (Suqian) Co. Ltd. The business model consists of financing, installing, owning and managing solar energy installations on customers' roofs in China. The customer does not pay for the plant, but instead undertakes to buy the electricity that the plant produces under a 20-year agreement. Current income comes from the sale of electricity to customers and from various forms of subsidies per kilowatt hour (kWh) of solar produced. The goal is to have an installed capacity of 1,000 megawatts (MW) by 2023, which is fully connected to the electricity grid by 2024.