Correction: SuZhou LongJie Special Fiber should instead read: HuiZhou JinLongYu Cable Industrial Development
On October 10, 2018, SolTech Energy Sweden AB (SolTech) publicized an order signed by SolTech’s jointly owned subsidiary in China, Advanced SolTech Renewable Energy Hangzhou Co. Ltd (ASRE) and SuZhou LongJie Special Fiber Co Ltd. concerning ASRE’s installation of a 3.5 MW solar energy unit. Due to a mix-up of customer information in China, the wrong company was cited as the customer in the aforementioned October 10, 2018 press release. The correct customer name should have read: HuiZhou JinLongYu Cable Industrial Development Co Ltd. The following information provided in the October press release remains unchanged: The installation’s 3.5 MW capacity is estimated to generate annual income amounting to approximately 4.1 MSEK. Cumulative income over the contract’s 20-year term is estimated to mount to approximately 82.MSEK (ca. 8.2 MEUR). However, the CEO’s comments appearing below differ from the October 10[th] press release, as this installation is to be carried out in another area.
As previously publicized, the installation will cover a roof surface area measuring circa 35,000 sq. meters (equivalent to ca. five football fields), and annually produce ca. 3,675,000 kWh. The customer is contractually committed to buying all the electricity that the instillation produces over the course of 20 years. Over this same period, ASRE receives subsidies from the Chinese authorities based on every kilowatt-hour (kWh) delivered to the customer. Investment in the installation, which continues to be owned by ASRE, amounts to approximately 22.1 MSEK (ca. 2.21 MEUR), and It is expected to be completed during the month of January 2019.
VD Stefan Ölander comments:
– We are happy about this order to the city of HuiZou (pop. 5 million), which lies northeast of Hong Kong and Shenzhen. This is a region that has one of the world’s hottest business climates – and we see strong possibilities to securing several orders. The subscription economy we are now building will continue to be very valuable to the concern over the coming 20 years.
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 5 November 2018, 07:00 CET.
SolTech Energy in brief SolTech Energy develops and sells esthetic, building-integrated solar energy products for all forms of building structures – commercial, public and residential. The products are part of a building’s outer shell, as a roof or wall, with integrated solar cells for the production of electricity. The concern also operates in China, where the business model consists of financing, owning and servicing solar energy installations on the roofs of customer owned facilities, and of selling all the electricity produced. Soltech Energy Sweden AB (publ.) is traded on First North at Nasdaq Stockholm, under the symbol “SOLT” and has over 15,000 shareholders. Also included in the concern are its jointly owned (51%) subsidiaries ASAB in Sweden and ASRE in China. The company’s Certified Advisor is Erik Penser Bank AB. 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 owns 51 percent and Advanced Solar Power Hangzhou Inc. (ASP) owns 49 percent. The business model consists of having ASRE finance, install, own, and periodically service 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 the relevant unit produces. ASRE’s current income comes from the sale of electricity to customers, along with various forms of subsidies based on kWh production. Focus is now concentrated on building a backlog of orders for 2018/2019 and beyond, with the goal of obtaining an installed capacity of 605 MW (megawatts) by the close of 2021, which in 2022 will be set into full operation, generating current annual sales amounting to approximately 1 billion SEK (ca. 100 MEUR).