Soltech group signs order in China that generates approx SEK 26 million during the contract period
Advanced Soltech’s subsidiary in China, ASRE, has signed an order with JingDeZheng YiShan Ceramics Co. Ltd. The order concerns to the installation of a solar power plant of 2 megawatts (MW) and is estimated to generate annual revenues of approx SEK 1.3 million, or approx SEK 26 million during the agreement’s 20-year term. The investment in the facility, which will be owned by ASRE, amounts to SEK 10.62 million and construction is scheduled to start in the fourth quarter of 2020.
Advanced Soltech´s CEO Max Metelius comments:
– Our team in China continues to deliver large projects with good profitability without subsidies at a good pace. We are very pleased with the response we receive in the market.
Certified Adviser of the company is FNCA, Tel: 08-528 00 399 E-mail: email@example.com
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 50.82 % owned by Soltech Energy Sweden AB (publ), 48.82% by Soltech’s Chinese partner, Advanced Solar Power Hangzhou Inc and 0.36% by several holders of preference shares.