Strong growth and four acquisitions during the third quarter
Soltech continues to grow and delivers a strong third quarter with a 46 percent increase in sales and a 45 percent increase in operating profit (EBIT). During the first half of the year, we completed four acquisitions and during the third quarter, four more were completed.
CEO comment:
– We live in a new reality with the pandemic hanging over us. At Soltech, however, we see signs of an even stronger market for our competitive offerings when both
Private individuals, companies and the public sector are investing more and more in solar energy
Third quarter in brief
- The Group's revenues in the quarter amounted to SEK 127.2 (87.3) million. An increase of 45.7%
- Revenues in the Swedish operations grew to SEK 84 M (51.9), an increase of 61.8%
- The Group's profit before depreciation (EBITDA) amounted to SEK 38.9 (30.2) million. An increase of 28.8%
- The Group's operating profit (EBIT) amounted to SEK 23.1 (15.9) million. An increase of 45.3%
- Profit for the period after tax amounted to SEK -18.1 (6.4) million. The result was affected by unrealized exchange rate differences in the Chinese operations by SEK -8.5 (10.8) million
- The period's cash flow for the Group amounted to 85.5 (-76.3) MSEK. The cash flow for the period was, among other things, positively affected by completed new issues
- Earnings per share amounted to -0.31 (0.13)
- Covid-19 is estimated to have had a certain impact on the Swedish operations in the quarter, but order intake is still good
- Operations in China have made a strong quarter with 38.4 million kWh produced. However, revenues were negatively affected in the period by approximately SEK 2 million due to temporary price reductions on electricity as a direct result of Covid-19. The quarter was also affected by unrealized price effects in the Chinese operations of a total of SEK -8.5 (10.8) million. A total of 143 MW of installed capacity (solar power plants) at the end of the quarter
First nine months in summary
- Total operating income amounted to SEK 336.1 (236.1) million. An increase of 42.4%
- The Group's operating profit before depreciation (EBITDA) amounted to SEK 87.3 (68.6) million. An increase of 27.3%
- The Group's operating profit (EBIT) amounted to SEK 43.9 (38.2) million. An increase of 14.9%
- Profit for the period after financial items, currency effects and tax amounted to SEK -60.6 (-6.2) million
- Covid-19 had a certain impact on Swedish operations during the period. The primary effects have been deferred customer meetings and orders
- Covid-19 is estimated to have had a negative impact on revenues in the Chinese operations during the period of approximately SEK 12.5 million. The reasons for this are due to the fact that a larger than normal share of the electricity produced has been sold to the grid instead of directly to the customer and then at a lower price per kWh. Some customers' production facilities in China were also closed until the end of May
Significant events during the period
- During the quarter, Soltech's subsidiary in China, ASRE, signed five orders that are estimated to generate a total annual revenue of SEK 12.7 million, or approximately SEK 253.9 million under the agreements 20-year maturities
- The Board of Directors of Soltech Energy Sweden AB (publ) decided, with the support of the Annual General Meeting's authorization, to carry out a rights issue of approximately SEK 98 million to finance continued expansion through acquisitions and to develop existing subsidiaries. In addition to the rights issue, there was an opportunity to decide on an over-allotment issue of SEK 46 million. The rights issue was oversubscribed by 590 percent, the over-allotment issue was completed in full and Soltech received a total of just over SEK 144 million before issue costs
- Soltech acquired 60 percent of the shares in Miljö & Energi Ansvar Sverige AB with access on September 1, 2020
- Soltech's subsidiaries, Swede Energy, Soltech Sales & Support and Measol will build Sweden's largest solar and direct current plant with Ferroamp. The order value is just over SEK 3 million
- Soltech and PowerCell Sweden AB (publ) have signed a Nordic co-operation agreement to develop solutions for customers that include both the Soltech Group's products for solar energy and PowerCell's products for storage.
- Soltech's subsidiary, Advanced Soltech, raises SEK 131.5 million before issue costs via subscription of newly issued preference shares. This is in order to take advantage of the business opportunities the company has in China. Soltech continues to own more than 50% of the shares in Advanced Soltech after the issue
- In connection with the Government's budget bill, two important changes were announced for the Swedish solar energy market. The kW limit for tax liability for self-produced solar energy is proposed to be raised at the turn of the year, from the current 255 kW installed power to 500 kW. At the same time, a new deduction is also proposed for the installation of green energy (private households). This includes both solar cells and charging options for e-cars, among other things
- Eurocommercial Properties chose Soltech's subsidiary Swede Energy Power Solutions as a partner in its investment in Solenergi. Eurocommercial Properties installs solar energy at its remaining shopping centers in Sweden 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
- Soltech acquired 80 percent of the shares in Takrekond in Småland AB and 100 percent of the shares in Takrekond in Kalmar AB with access on October 1, 2020
- Soltech acquired 60 percent of the shares in Din Takläggare i Värmland Dalsland AB with access on 1 October 2020
Significant events after the reporting period
- Soltech's subsidiary Soltech Sales & Support has received orders via Bergman and Höök Byggnads AB to deliver semi-transparent solar cells to the end customer Wallenstam. Order value approx. SEK 7 million
- Soltech's subsidiary in China, ASRE, has signed orders that are estimated to generate annual revenues of just over SEK 1.9 million, or approximately SEK 38.7 million during the agreements' 20-year maturities
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.
Soltech Energy Sweden AB's (publ) new share issue with preferential rights for shareholders has been completed. The rights issue was oversubscribed by 590 percent. In total, shares were subscribed for for more than SEK 676 million, which is why Soltech has decided to also carry out a directed Over-allotment Issue. Soltech will thus receive a total of just over SEK 144 million before issue costs.
CEO Stefan Ölander in a comment:
– We are humbly grateful for the trust existing and new shareholders have shown us in this new share issue. We now have the funds we need to exploit the potential of the rapidly growing market and to continue our successful acquisition strategy.
Number of shares and Over-allotment
A total of 7,759,307 shares were subscribed for with the support of subscription rights, corresponding to approximately 95 percent of the Rights Issue, and 48,607,379 shares without the support of subscription rights, corresponding to approximately 595 percent of the Rights Issue. The rights issue was thus oversubscribed by 590 percent.
To enable allotment to those stakeholders who have not been allotted in the Rights Issue and for the purpose of broadening and strengthening the Company's ownership base, the Board has decided to issue an additional 3,840,000 shares in an Over – allotment issue. This is done at a subscription price of SEK 12 per share, which gives approximately SEK 46 million, and on the terms stated in the prospectus regarding the Rights Issue, which gives approximately SEK 98 million.
Through the Rights Issue and the Over-allotment Issue, a total of 12,012,423 shares will be issued and the Company will thus receive SEK 144,149,076 million before issue costs.
Allocation in the Rights Issue
The persons who have subscribed for shares on the basis of subscription rights have been allotted BTA in connection with simultaneous payment. Notice of allotment to the persons who have subscribed for shares without the support of subscription rights is expected to be distributed on 10 September 2020 by sending a settlement note. Allocation to the persons who have subscribed for shares via the nominee is expected to be visible in the account around 15 September 2020. Nominee-registered shareholders will be notified of the allotment in accordance with the respective nominee's routines. Subscribed and allotted shares must be paid for in cash no later than the settlement date, 15 September 2020, in accordance with the instructions on the settlement note. Only those who receive an award will be notified.
Allocation in the Over-Allocation Issue
Notice of allotment to the persons who have subscribed for shares without the support of subscription rights is expected to be distributed on 10 September 2020 by sending a settlement note.
Three groups of investors will be allotted shares in the Over-allotment Issue:
The Board has decided to give a large number of new owners the opportunity to participate in the over-allotment issue with a small investment to further broaden the shareholder base in the Company.
In order to open up a new circle of owners of professional investors, the Board has also decided to give investors who have shown special interest in Soltech, and who are judged to be able to contribute strategically to the Company's development, a certain opportunity to participate in the allotment issue.
Finally, it has been decided that key personnel within all ten of the Soltech Group will be given the opportunity to participate in the over-allotment issue in order to create loyalty, long-term perspective and commitment.
Share capital and number of shares
Following the registration of the Rights Issue and the Over-allotment Issue with the Swedish Companies Registration Office, the Company's share capital will increase by SEK 600,621 to a total of SEK 3,460,969. The number of shares in the Company will thereafter increase by an additional 12,012,423 shares to a total of 69,219,387 shares.
Paid subscribed shares, BTA
Subscription of shares with and without preferential rights took place during the period 24/8 – 7/9 2020. As soon as the share capital increase has been registered with the Swedish Companies Registration Office, paid subscribed shares (BTA) in the rights issue will be converted into new shares. Until then, trading with BTA on the Nasdaq First North Growth Market. Trading in new shares is expected to begin on Nasdaq First North Growth Market around week 41 2020. The persons allotted shares in the directed Over-allotment Issue will not receive BTA but will instead be allotted shares after the share capital increase has been registered with the Swedish Companies Registration Office. This is expected to take place around week 40 2020.
The purpose of the intended raising of capital before the planned listing is to be able to take advantage of the good business opportunities that the company now has in China. The new capital is intended to be invested in roof-based solar energy plants.
Advanced Soltech's CEO, Max Metelius comments:
China continues to recover from the Corona pandemic and we see strong demand for our offering with many business opportunities as a result. We have several large projects with good profitability in our pipeline and in order not to lose momentum on our growth journey, we now want to investigate the possibility of raising capital in the form of a preference share issue, which also strengthens the company's equity.
For more information contact:
Max Metelius, CEO Advanced Soltech Sweden AB (publ) Tel: 072- 316 04 44. Email: max.metelius@advancedsoltech.com
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.
ASRE and Longrui Solar Energy (Suqian) Co. Ltd. are wholly owned subsidiaries of Advanced Soltech Sweden AB (publ). ASAB is 51% owned by Soltech Energy Sweden AB (publ) and 49% by Soltech's Chinese partner, Advanced Solar Power Hangzhou Inc.
Soltech delivers a sales increase of 69 percent and an increase in operating profit (EBIT) of 210 percent compared with the second quarter of 2019. We expect that our expansion journey will continue, and that this year's sales will exceed last year's by a good margin.
CEO comment:
– The world has experienced a dizzying quarter and I am proud that our subsidiaries deliver such strong growth. Soltech is in an expansive phase and I look forward to building on our group and delivering value to our owners.
Second quarter in brief
▪ The Group's revenues in the quarter amounted to SEK 156.1 (92.3) million. An increase of 69%
▪ Revenues in the Swedish operations grew to SEK 109.1 (63.8) million, an increase of 71%
▪ The Group's profit before depreciation (EBITDA) amounted to SEK 49.7 (18.4) million.
An increase of 170%
▪ The Group's operating profit (EBIT) amounted to SEK 35.6 (11.5) million. An increase of 210%
▪ Profit for the period after tax amounted to SEK -37 (-3) million. The result was affected by
unrealized exchange rate differences in the Chinese operations by SEK -38.5 (-0.0) million
▪ The period's cash flow for the Group amounted to SEK 69.4 (-13.6) million
▪ Earnings per share amounted to -0.65 (-0.17)
▪ Covid-19 is not expected to have a significant impact on Swedish operations in the second
quarter. The main impact in the Swedish operations is that projects are pushed forward and
that it takes longer to reach a decision. Despite this, Soltech had a very good order intake
during the quarter, which contributes to the increased sales compared with the corresponding
period last year.
▪ Operations in China returned to a normal level during the quarter, where all installed capacity
of 143 MW now generates revenue as expected. However, revenues were negatively affected
in the period by approximately SEK 5 million due to temporary price reductions on electricity in
combination with a small part of the production facilities being closed until the end of May.
This is a direct result of Covid-19.
First half year in summary
▪ Total operating income amounted to SEK 209 M (148.7). One increase by 40%
▪ The Group's operating profit before depreciation (EBITDA) amounted to SEK 48.4 (38.2)
million. An increase of 26%
▪ The Group's operating profit (EBIT) amounted to SEK 20.8 (22.3) million. A reduction of 6%
▪ Profit for the period after financial items, currency effects and tax amounted to SEK -42.5
(-12.6) million
Significant events during the period
▪ On May 4, Soltech took over as owner of 70% of Fasadsystem in Stenkullen AB
▪ Soltech becomes the official sponsor of the Swedish investment in Expo 2020 in Dubai
▪ Over SEK 80 million in order value at Soltech's subsidiaries in April-May despite Covid-19
pandemic
▪ Soltech's subsidiary Advanced Soltech Sweden AB (publ) directed offer of up to SEK 100
million under the existing bond framework oversubscribed
▪ Soltech's subsidiary Advanced Soltech signs a cooperation agreement that, when fully
developed, provides just over SEK 31 million per year and takes orders of SEK 30.4 million
▪ Soltech Energy Sweden AB (publ) option program (2015/2020), which was established in 2015
before listing of the Company's shares on Nasdaq First North, has to the extent allotted and
subscribed, been redeemed by the holders
▪ Anna Kinberg Batra was elected by the Annual General Meeting as the new
Chairman of the Board
▪ Max Metelius is appointed CEO and Frederic Telander Chairman of Advanced Soltech
as of June 24
Significant events after the reporting period
▪ Advanced Soltechs ASRE receives two new orders that provide a total of approximately
SEK 130 million during the contract period
▪ Soltech Energy Sweden AB (publ) announces rights issue of SEK 98 million with possible
overallotment issue of a maximum of 46 to finance continued expansion through acquisitions
and to develop existing subsidiaries
For more information contact:
Stefan Ölander, CEO Soltech Energy Sweden AB (publ) Tel: 070-739 80 00.
Email: stefan.olander@soltechenergy.com.
The information in this press release is such that Soltech Energy Sweden AB (publ) must publish in accordance with EU regulation no. 596/2014 on market abuse. The information was submitted through the above contact person for publication on 21 August 2020 at 13.00 CET.
About Soltech Energy Sweden AB (publ)
Soltech is a complete supplier that develops, sells, installs and optimizes solar energy solutions for our customers' needs. The group includes the subsidiaries Advanced Soltech Sweden AB (publ) where the Chinese investment is conducted, Soltech Sales & Support, NP-Gruppen, Swede Energy Power Solutions, Merasol, Soldags, Takorama and Fasadsystem. Soltech Energy Sweden AB (publ), is traded on the Nasdaq First North Growth Market under the short name SOLT and has approximately 34,000 shareholders. The company's Certified Adviser is Erik Penser Bank. Phone: 08-463 83 00. Email: certifiedadviser@penser.se. For more information see: www.soltechenergy.com
For more information contact:
Stefan Ölander, CEO Soltech Energy Sweden AB (publ) Tel: 070-739 80 00. Email: stefan.olander@soltechenergy.com
About Soltech Energy Sweden AB (publ)
Soltech is a complete supplier that develops, sells, installs and optimizes solar energy solutions for our customers' needs. The group includes the subsidiaries Advanced Soltech Sweden AB (publ) where the Chinese investment is conducted, Soltech Sales & Support, NP-Gruppen, Swede Energy Power Solutions, Merasol, Soldags, Takorama and Fasadsystem. Soltech Energy Sweden AB (publ), is traded on the Nasdaq First North Growth Market under the short name SOLT and has approximately 34,000 shareholders. The company's Certified Adviser is Erik Penser Bank. Phone: 08-463 83 00. Email: certifiedadviser@penser.se. For more information see: www.soltechenergy.com
The terms of the Rights Issue mean that seven (7) existing shares give the right to subscribe for one (1) new share at a subscription price of SEK 12 per share, which corresponds to a discount of approximately 23.7% percent compared with the volume-weighted average price during the 20 trading days, between 14/7 and 10/8 2020.
In the event of great interest in the Rights Issue, the Board has a mandate to decide on an additional new issue (“Over-allotment issue) of a maximum of 3,840,000 shares with deviation from the shareholders' preferential rights. The price for acquiring shares in the Over-allotment Issue is SEK 12 per share and the gross proceeds from this are estimated at full subscription to amount to approximately SEK 46 million before deductions for issue costs. The over-allotment issue enables allotment to those stakeholders who may not receive an allotment in the Rights Issue and at the same time enables an increase in the Company's shareholder base through allotment to new stakeholders. The Board's decision on the Rights Issue and, where applicable, the Over – allotment Issue will be made with the support of the issue authorization granted at the Annual General Meeting on June 24, 2020.
Background and motifs
Ahead of 2019, Soltech announced that the Company will acquire companies in the solar, roof, electricity, charging and facade industries to build a leading group in solar energy and clean tech. During 2019 and the first half of 2020, seven successful acquisitions were made, which contributed greatly to the Group's total revenues amounting to just over SEK 303 million in 2019 compared with approximately SEK 53 million in 2018, and that the Company has since also gained twice as many shareholders, and not least the share price doubled in 2019.
The acquisition strategy has proven to work very well and now the Company is conducting a rights issue to create conditions for expansion through further acquisitions, to be able to develop existing subsidiaries and to focus on marketing, sales and recruitment.The solar energy market in Sweden and other countries is in a strong development phase. Many companies have been formed to take part in the growing market. The Board and management of Soltech have made the assessment that this opens up for a consolidation of the market where a player with the right strategy and sufficient financial resources has the opportunity to become a market leader through acquisitions of various types of companies to create a larger and more profitable Nordic unit.The Soltech Group sees clear synergy effects between our subsidiaries within e.g. purchasing, HR, warehousing & logistics, marketing and sales. This affects both sales and profits in the companies and we are convinced that these synergy effects are a crucial part of the journey of success we aim for in the coming years.
Of the issue proceeds, which upon full subscription will amount to approximately SEK 98 million, before issue costs, are reserved in order of priority:
• SEK 60 million for further company acquisitions
• SEK 30 million for investments in subsidiaries
• SEK 4 million for marketing and recruitment
• SEK 4 million for issue costs
Upon full subscription also of the Over-allotment Issue, the opportunities for new company acquisitions will be increased, as the Company will receive an additional SEK 46 million before issue costs, which are estimated to amount to approximately SEK 1 million.
The Board's strategy is continued growth both organically through increased sales of own products and through acquisitions. The purpose of the acquisitions is partly to contribute to the Group's development as a whole, but also for these companies to function as marketing channels for the Company's own products.
The rights issue in summary
The right to subscribe for new shares shall accrue to the Company's shareholders with preferential rights. Each share held as of the record date on August 20 gives one (1) subscription right (TR). It takes seven (7) TRs to subscribe for one (1) new share at a subscription price of SEK 12. Subscription of shares will take place during the period 24/8 – 7/9 2020. Upon full subscription of the Rights Issue, the Company will receive approximately SEK 98 million before issue costs, which are estimated to amount to approximately SEK 4 million.
The last day for trading in the Company's shares, including the right to receive subscription rights in the Rights Issue, is August 18, 2020. Subscription of shares with the support of subscription rights shall take place through cash payment during the period 24/8 – 7/9 2020. Subscription of shares without support of subscription rights shall be made on a special subscription list during the period 24/8 – 7/9 2020. Payment for shares subscribed without the support of subscription rights shall be made no later than three banking days after the issuance of the settlement note showing the allotment. The Board has the right to extend the subscription period and the last day for payment.
In the event of great interest in the Rights Issue, the Board has a mandate to decide on an additional new issue (“Over-allotment issue”) of a maximum of 3,840,000 shares with deviation from the shareholders' preferential rights. The price for acquiring shares in the Over-allotment Issue is SEK 12 per share and the gross proceeds from this are estimated at full subscription to amount to approximately SEK 46 million before deductions for issue costs. The purpose of the Over-allotment Issue is to create the conditions for an even faster expansion through further acquisitions. The over-allotment issue is conditional on the Rights Issue being oversubscribed.
The rights issue amounts to a maximum of 8,172,423 shares. This means that the share capital increases by a maximum of SEK 408,621 to a maximum of SEK 3,268,969. The shares issued in connection with the Offering correspond to approximately 12.5 percent of the share capital in the Company after the completion of the new share issue (provided that a fully subscribed Offering). Shareholders who choose not to participate in the Rights Issue will, when fully subscribed, be diluted by approximately 12.5 percent. Upon full utilization of the Over-allotment Issue, the share capital will increase by a maximum of SEK 192,000 to a maximum of SEK 3,460,969.The over-allotment issue corresponds to a maximum of approximately 5.55 percent of the Company's total share capital. In the event that both the Rights Issue and the Over-allotment Issue are utilized, the share capital will increase by SEK 600,621 to a maximum of SEK 3,460,969. The dilution will amount to a maximum of approximately 17.35 percent calculated as the number of new shares after the new share issue divided by the total number of shares after the new share issue. The rights issue and the Over-allotment issue are not secured by issue guarantees or subscription commitments.
Shareholders who choose not to participate in the Rights Issue have the opportunity to compensate for the financial dilution effect by selling their subscription rights.
Prospectus
The complete terms and conditions for the Rights Issue and information about the Company will be reported in a prospectus approved by the Swedish Financial Supervisory Authority, which is expected to be published on the Company's website on 13 August 2020.
Schedule for the Rights Issue and any Over-allotment Issue
Last day for trading incl. right to participate 18 August 2020
Reconciliation day 20 August 2020
Subscription period 24 August to 7 September 2020
Trading in subscription rights 24 August to 3 September 2020
Press release on issue outcome 10 September 2020
Notice of allocation and dispatch of settlement notes 10 September 2020
Settlement date for settlement notes 15 September 2020
Issuing
For further questions regarding subscription, contact your personal bank adviser, your nominee or Soltech's issuing institution Aktieinvest FK AB on 08 506 517 95 or emittentservice@aktieinvest.se
For more information contact:
Stefan Ölander, CEO Soltech Energy Sweden AB (publ) Tel: 070-739 80 00. E-mail:
stefan.olander@soltechenergy.com
The information in this press release is as required by Soltech Energy Sweden AB (publ)
publish in accordance with EU Regulation No. 596/2014 on market abuse. The information was provided
through the above contact person for publication on 13 August 2020 at 11:00 CET.
NOT FOR PUBLICATION, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR TO THE UNITED STATES, AUSTRALIA, JAPAN OR CANADA OR IN ANY OTHER JURISDICTION THAT DISTRIBUTES DISTRIBUTION.
The order is divided into two phases where 7.5 MW is built in the first phase and 3.5 MW in the second. When 11 MW is built and connected to the grid, the plant is estimated to produce approximately 12,760,000 kWh annually, which for 20 years will be sold directly to the electricity grid. The investment in the 11 MW plant, which will be owned by ASRE, amounts to approximately SEK 50.6 million and construction is scheduled to start in the fourth quarter of 2020.
Advanced Soltech's CEO Max Metelius comments:
– We are happy and proud of this very large deal which is our second largest to date. In terms of size, this roof-based facility of 11 MW can be compared with Sweden's largest solar park in Linköping, which is ground-based and will be 12 MW. In this project, we sell the electricity produced directly to the local grid company, which provides extremely low counterparty risk and good profitability. Despite the Corona crisis, we see strong demand for our offering in China and we are optimistic about future business opportunities.
For more information contact:
Stefan Ölander, CEO Soltech Energy Sweden AB (publ) Tel: 070-739 80 00. E-mail: stefan.olander@soltechenergy.com or Max Metelius, CEO Advanced Soltech Sweden AB (publ) Tel: 072- 316 04 44. Email: max.metelius@advancedsoltech.com
The information in this press release is such that Soltech Energy Sweden AB (publ) must publish in accordance with EU regulation no. 596/2014 on market abuse. The information was provided by the above contact person for publication on July 27, 2020 at 07:30 CET.
About Soltech Energy Sweden AB (publ)
Soltech is a complete supplier that develops, sells, installs and optimizes solar energy solutions for our customers' needs. The group includes the subsidiaries Advanced Soltech Sweden AB (publ) where the Chinese investment is conducted, Soltech Sales & Support, NP-Gruppen, Swede Energy Power Solutions, Merasol, Soldags, Takorama and Fasadsystem. Soltech Energy Sweden AB (publ), is traded on the Nasdaq First North Growth Market under the short name SOLT and has approximately 34,000 shareholders. The company's Certified Adviser is Erik Penser Bank. Phone: 08-463 83 00. Email: certifiedadviser@penser.se. For more information see: www.soltechenergy.com
About the China venture
Soltech Energy's investment in China is 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. ASRE and Longrui Solar Energy (Suqian) Co. Ltd. are wholly owned subsidiaries of Advanced Soltech Sweden AB (publ). ASAB is 51% owned by Soltech Energy Sweden AB (publ) and 49% by Soltech's Chinese partner, Advanced Solar Power Hangzhou Inc.
The plant is estimated to produce approximately 446,250 kWh annually and the customer buys the electricity that the plant produces for 20 years. The investment in the facility, which will continue to be owned by ASRE, amounts to approximately SEK 2.4 million and construction is scheduled to start in the fourth quarter, 2020.
The total installed solar energy capacity in China now amounts to 143 megawatts (MW). This corresponds to approximately 1,430,000 square meters of roof or approximately 204 soccer pitches. The energy produced each year corresponds to the electricity consumption in approximately 9,000 Swedish villas.
Advanced Soltech's CEO Max Metelius comments:
– We are noticing an increase in activity in China despite the Corona crisis and we are optimistic about future business opportunities. This order is the second phase in an already existing installation, which proves that customers are happy to increase their investment in solar energy when they see the positive effects and that ASRE can also increase its installed solar energy capacity through additional sales to existing customers.
For more information contact:
Stefan Ölander, CEO Soltech Energy Sweden AB (publ) Tel: 070-739 80 00. E-mail: stefan.olander@soltechenergy.com or Max Metelius, CEO Advanced Soltech Sweden AB Tel: 072-316 04 44. E-mail : max.metelius@advancedsoltech.com
The information in this press release is such that Soltech Energy Sweden AB (publ) must publish in accordance with EU regulation no. 596/2014 on market abuse. The information was provided by the above contact person for publication on July 20, 2020 at 07:30 CET.
About Soltech Energy Sweden AB (publ)
Soltech is a complete supplier that develops, sells, installs and optimizes solar energy solutions for our customers' needs. The group includes the subsidiaries Advanced Soltech Sweden AB (publ) where the Chinese investment is conducted, Soltech Sales & Support, NP-Gruppen, Swede Energy Power Solutions, Merasol, Soldags, Takorama and Fasadsystem. Soltech Energy Sweden AB (publ), is traded on Nasdaq First North Growth Market under the short name SOLT and has approximately 34,000 shareholders. The company's Certified Adviser is Erik Penser Bank. Phone: 08-463 83 00. Email: certifiedadviser@penser.se. For more information see: www.soltechenergy.com
About the China venture
Soltech Energy's investment in China is 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.
ASRE and Longrui Solar Energy (Suqian) Co. Ltd. are wholly owned subsidiaries of Advanced Soltech Sweden AB (publ). ASAB is 51% owned by Soltech Energy Sweden AB (publ) and 49% by Soltech's Chinese partner, Advanced Solar Power Hangzhou Inc.
Examples of deals taken or agreements taken are the following:
Swede Energy has signed a framework agreement with Bergendahl Food, which consists of supplying warehouse properties and City Gross stores with green electricity from solar cells. This is part of City Gross' sustainability work. During the autumn of 2020, we will, together with the property owners, evaluate which properties are most suitable for installing solar energy. The photovoltaic systems are estimated to be 255 kWh and produce approximately 220,000 kWh per store and year.
In addition to this, for example, repeat customers such as Castellum, Catena, HSB, Willhem and Bostadsaktiebolaget Vätterhem have bought photovoltaic systems. The AMO Group and the Church of Sweden are new customers who will be welcomed by Swede Energy during the first half of 2020.
Soltech's CEO, Stefan Ölander in a comment:
– Swede Energy's success continues at a rapid pace. These deals and agreements are proof of our group's ability to do big business even though we are in the middle of the Covid-19 pandemic.
For more information contact:
Stefan Ölander, CEO Soltech Energy Sweden AB (publ) Tel: 070-739 80 00. Email: stefan.olander@soltechenergy.com
The information in this press release is such that Soltech Energy Sweden AB (publ) must publish in accordance with EU regulation no. 596/2014 on market abuse. The information was provided by the above contact person for publication on 15 July 2020 at 10.15 CET.
About Soltech Energy Sweden AB (publ)
Soltech is a complete supplier that develops, sells, installs and optimizes solar energy solutions for our customers' needs. The group includes the subsidiaries Advanced Soltech Sweden AB (publ) where the Chinese investment is conducted, Soltech Sales & Support, NP-Gruppen, Swede Energy Power Solutions, Merasol, Soldags, Takorama and Fasadsystem. Soltech Energy Sweden AB (publ), is traded on the Nasdaq First North Growth Market under the short name SOLT and has approximately 34,000 shareholders. The company's Certified Adviser is Erik Penser Bank. Phone: 08-463 83 00. Email: certifiedadviser@penser.se. For more information see: www.soltechenergy.com