Below follows a fifth “Business status update”. These updates are published in addition to company annual and quarterly reports, as well as customary press releases.
SolTech’s jointly owned subsidiary in Kina, ASRE, is clearly moving from strength to strength and, in terms of sales, having met the goal of 25 MW (megawatts) targeted for 2016 ahead of schedule, our focus over recent weeks has already shifted to fulfilling the 50 MW goal set for 2017. Assuming the targeted volume goals for both 2016 and 2017 – respectively, 25 MW and 50 MW, installed and set into operation – are met, we will attain an annual sales figure for ASRE equivalent to approximately 130 MSEK (13.3 MEUR) with a good margin of profit. Our overall goal remains in force: By the close of 2019, ASRE shall have attained an installed capacity equivalent to 230 MW, which will be fully set into operation during 2020, generating annual sales equivalent to approximately 400 MSEK (40.1 MEUR).
- Orders signed by ASRE in China during 2016 thus far amount to a total electric production capacity equivalent to 11.7 – 15.7 MW. Coupled to the main electrical network and fully set into operation, this production capacity is estimated to generate annual earnings equivalent to approximately 50.5 – 57.4 MSEK (5.15 – 5.86 MEUR). Cumulative income over the contract’s 20-year lifespan is estimated to mount to the equivalent of approximately 1,028 – 1,166 MSEK (105 – 119 MEUR) on a total investment of 265 – 305 MSEK (27 – 31 MEUR).
- ASRE now has eight solar energy installations coupled to the main electrical network, cumulatively representing a total electric production capacity of 11.05 MW, which, on a rolling, 12-month basis, is estimated to generate approximately 19.6 MSEK (2 MEUR). Next in line for coupling to the network are six completed installations, whose cumulative production represents an additional 5.46 MW, which means a total coupled capacity of 16.51 The cumulative annual income of all these completed installations, estimated on a rolling, 12-month basis, amounts to just under 30 MSEK (3.3 MEUR).
- The firm’s Wasa Rör subsidiary has provided good earnings and profits during the year and current total sales already exceed the 40 MSEK sales total budgeted for the entire year of 2016.
- Cooperation with Sapa Building Systems AB relating to the integration of SolTech’s solar cells in Sapa’s aluminum profile products is going according to plan. The contract applies in the Nordic and Baltic regions, and its reception in the market has been notably positive. During the year, orders have been signed with both Skanska and Peab and negotiations are currently taking place with several major property owners in connection with large-scale, comprehensive projects both in Sweden and abroad, where other Sapa companies have also shown interest and look to establish a collaborative relationship. Given the evident strong interest, we are convinced that further orders, and/or collaborative agreements within the building branch that eventually lead to orders, are near at hand.
- A ”test” installation of our new product, SolTech ShingEl, has been delivered to Myresjöhus. By combining solar energy technology with modern thermal heat-pump technology, we strive to make houses energy neutral, i.e. not requiring inputs of energy from a main electrical network on an annual basis. SolTech naturally harbors hopes of expanded cooperation, particularly as Byggfakta reports that Myresjöhus and Smålandsvillan (both firms are subsidiaries of the same parent concern), together, built 1,000 detached small houses in 2015, making their grouping the market leader in Sweden.
- In addition to the above-mentioned exclusive cooperation agreement, a gratifying result of SolTech’s strategic focus, we are continuing to develop our low-intensive international market introduction of SolTech products. The products are being sold through a network of selected sales representatives who are paid on a provision basis. As yet, this has not led to sales in notable volume, which is line with our expectations at this early stage.
This press release contains insider information, which SolTech Energy Sweden AB (publ.) is required to make public according to the EU’s market abuse regulation. Said information is furnished, via the above-cited contact person’s authorization, for publication on December 20 2016, at 07:00 CEST.
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”. 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 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 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, 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 capacity of approximately 230 MW in full operation, generating current annual sales amounting to approximately 400 MSEK (40.1 MEUR).