Business status update: SolTech Energy Sweden AB (publ)

 

Below follows a fourth “Business status update”. These updates are published in addition to company annual and quarterly reports, as well as press messages.

  • The concern’s order bookings, excluding ASRE’s contracts in China, as of 11 April 2016, have risen to 37 MSEK ($4,512,000 US)* as compared with 17,9 MSEK ($2,183,000 US) recorded at the same time-point last year.
  • The firm’s Wasa Rör subsidiary continues to provide good earnings and operate within budget at the close of the first quarter 2016.
  • Cooperation with Sapa Building Systems AB relating to the integration of SolTech’s solar cells in Sapa’s aluminum profile products is working out beyond expectations. The contract is effective in the Nordic and Baltic regions, with the official launch of the cooperation agreement having taken place at the Nordbygg convention in Stockholm, beginning on the 5th through the 8th of April 2016: The market’s welcome reception was overwhelming. And just now, even as this update is being written, negotiations with several large property/building-owner firms regarding comprehensive projects are already in progress.
  • SolTech’s jointly owned subsidiary in Kina, ASRE, is clearly moving from strength to strength and, in terms of sales, we are significantly ahead of our planned goals. ASRE’s concept, products and business model have proven to be very sought after by prospective customers. Since the December 2015 business update, ASRE has signed framework-contracts with two different provinces in China covering the delivery of solar energy systems totaling an equivalent installed energy effect of 150 MW (100 + 50) over the coming five-year period. For purposes of comparison: The circa 150,000.000 kWh produced by a 150 MW energy installation in Sweden equates to the average annual electrical consumption of 6,000 ordinary single-family homes.
  • Thus far, orders signed by ASRE in China during 2016 total an electric production capacity equivalent to 11,7-15,7 MW. Fully up and running, duly licensed and linked to the main electrical network, these installations are estimated to provide annual earnings equivalent to 20,6-27,5 MSEK (2.5 – 3.4 million US dollars)* Cumulative income over the 20-year lifetime of these contracts is estimated to mount to the equivalent of approximately 412,5- 550,5 MSEK (50.3 – 67.1 million US dollars) vs. an estimated total investment of 119,5 – 159,5 MSEK (14.6 – 19.5 million US dollars).

* Based on exchange rate of 8.2 SEK/USD

CEO Frederic Telander comments:

  • Providing electricity in China is very satisfying and we see no reason why this will not continue into the future. Cooperation with Sapa centered on our joint products got a very positive reception at the Nordbygg convention, and this is our latest additional measure of satisfaction. There is feeling of reassurance in knowing that the company now has a stabile base and platform that consists of our traditional solar energy products, with SolTech Sigma (SolTech’s thermal solution making use of glass plates), along with our new products for producing electricity – Soltech ShingEl and our thin-film solar cells, SolTech Supreme. This, complemented by our VS-and energy effectivization company Wasa Rör, our jointly owned company ASRE in China, and our cooperation with Sapa, undeniably makes the future appear very exciting.

For more information, please contact:
Frederic Telander, CEO SolTech Energy, Tel: 08-441 88 46. Email; frederic.telander@soltechenergy.com

SolTech Energy in brief:
SolTech Energy develops and sells a solar energy system based on research carried out over several years at Kungliga Tekniska Högskolan (KTH- Royal Institute of Technology). The system is a part of a building’s outer shell; specifically, roofs and/or walls formed of glass (panels or glass plates) that function as both weather protection and sun-catchers for the production of heat, hot water and electricity. The assortment of suitable glass also includes unique thin-film solar cells in black and/or semi-transparent glass – or as isolated glass modules in various sizes and formats that promote integration with a building’s outer shell.

SolTech Energy Sweden AB (publ.) is traded on First North at Nasdaq Stockholm, under the symbol “SOLT”. Also included in the concern is its jointly owned (51%) Chinese company, ASRE (see below), as well as its wholly owned subsidiary Wasa Rör T Mickelsson AB. The company’s Certified Advisor 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 (51%) majority owner and Advanced Solar Power Hangzhou Inc. the (49%) minority owner. The business model consists of having said jointly owned company, ASRE, responsible for the installation, ownership, and periodic maintenance of solar energy installations mounted on the roofs of customer-owned facilities. During the beginning period, this model has first been implemented in Hangzhou in the province of Zhejiang, with a view to thereafter expanding to other regions in China. The customer does not pay for the installed solar energy unit, but instead undersigns a long-term 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, in combination with various forms of subsidies per produced kWh. The strategy is to build a backlog of orders for 2016 and beyond, with the goal of obtaining by the year 2019 an installed and operational capacity of approximately 230 MW, corresponding to a continuous yearly sales figure of approximately 400 MSEK ($48,800,000 US).

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