Business status update: SolTech Energy Sweden AB (publ.)
The following text presents the company’s first business status update for 2017. Such periodic updates are published in addition to the publication of interim and year-end financial reports, as well as ordinary press releases.
SolTech continues to develop in a positive direction with undiminished strength. We are convinced that that the expansion of solar energy will be greater than anyone thought possible only a few years ago, and further, that SolTech is well positioned to take a healthy bite of this ever-rising ”cake” both at home and in China. Cited below is a sampling of examples gleaned from ongoing business activities that reinforces this perception.
SolTech Energy’s subsidiary ASRE is on the threshold of obtaining governmental financial support in China.
Last week, SolTech Energy’s CEO Frederic Telander and its Board chairman Stefan Ölander concluded a very successful business trip to China. Among other beneficial results, ASRE received a tentative oral commitment from Hangzhou Economic & Technological Development Area (Heda) – which is to say, the local government of Hangzhou, SolTech’s home city in China – that ASRE will be awarded the equivalent of 0.5 percent of the total out of country capital the company invests in China. Inasmuch as ASRE plans to invest several billion Swedish Crowns over the coming years in its solar cell installations – with the overall goal of obtaining a total installed capacity of 605 MW (megawatts) in 2021 – such a governmental subsidy stands to be quite significant.
Solar energy capacity fully coupled to the electric network in China
To date, ASRE has coupled a sum total solar energy capacity of 18.85 MW* to the central electric network, which is now generating income. Over and above this figure, 7 MW are under construction and the backorder log for 2017 thus far reads 24 MW.
* Whereof the latest 250 KW were booked the week previous to this press release
After the launch of SolTech’s solar cell roof panel. SolTech ShingEl, at the world’s biggest solar energy convention – SNEC in Shanghai over 19-21 April 2017 – Chinese construction companies and aftermarket retailers have demonstrated strong interest in this unique product. Together with ASP we have ensured adequate production capacity and begun marketing ShingEl. China is far and away the world’s largest market for roof panels, and thus constitutes truly extensive potential for SolTech ShingEl.
In addition to the launch in China, SolTech js finalizing negotiations with a Swedish partner concerning the launch of ShingEl in our home market.
ISO 9001 certified
As part of SolTech’s inherent effort to continuously improve its operation, and build ever more stabile and well functioning processes, a new conduction system has been introduced and the quality of its processes certified according to ISO 9001. This certification further confirms SolTech’s commitment to quality work.
The information contained in this press release conforms to that which SolTech Energy Sweden AB (publ.) is required to make public according to the EU’s regulation.596/2014 concerning securities market abuse. Said information is furnished, via the above-cited contact person’s authorization, for publication on 3 July 2017, at 08:15 CET.
SolTech Energy AB (publ.) in brief
SolTech Energy is a Swedish solar energy company that specializes in developing and implementing esthetically attractive solutions that enable every building to produce more energy than it consumes. SolTech Energy develops its own products, which are based on research carried out at Kungliga Tekniska Högskolan (KTH- Royal Institute of Technology) and are a part of a building’s outer shell that produce hot water or electricity. Included in the product assortment are unique, customer-tailored semi-transparent thin-film solar cells that, among other retail venues, are now sold via the Company’s exclusive contract with Sapa Building Systems throughout the Nordic and Baltic region. SolTech Energy Sweden AB (publ.) is traded on First North at Nasdaq Stockholm, under the symbol “SOLT”. Also included in the concern are its jointly owned (51%) subsidiaries Advanced SolTech Sweden AB (publ.) ASAB, and Advanced SolTech Renewable Energy, Hangzhou Inc. (ASRE), as well as its wholly owned subsidiary Wasa Rör T Mickelsson AB. The company’s Certified Advisor, with respect to its listing on Nasdaq First North, is G&W Fondkommission (securities broker). For more information see: www.soltechenergy.com
Investment in China
SolTech’s investment in China is carried out by a jointly owned company, Advanced SolTech Renewable Energy (Hangzhou) Co. Ltd (ASRE), where SolTech is the majority (51%) owner and Advanced Solar Power Hangzhou Inc. (ASP) the minority (49%) owner. The business model consists of having said jointly owned company, ASRE, responsible for the financing, installation, ownership, and periodic maintenance of solar energy installations mounted on the roofs of customer-owned facilities. The customer does not pay for the installed solar energy unit, but instead undersigns a long-term, 20-25 year contract to buy all the electricity and/or thermal heat the relevant unit produces. ASRE’s current income comes from the sale of electricity to customers, along with various forms of subsidies per produced kWh. Focus is now concentrated on building a backlog of orders for 2017 and beyond, with the goal of obtaining by the close of 2021 an installed capacity of 605 MW (megawatts), which in 2022 will be set into full operation, generating current annual sales amounting to approximately 1 billion SEK (103 MEUR).