Fourth order signed in NingBo City with SolTech’s subsidiary, ASRE, in China

 

ASRE has signed an order with Zhejiang JunHe Pumps Holding Co. Ltd. The order applies to the installation of the fourth solar energy unit in the city of NingBo, Zhejiang Province. The installation will have a capacity of 2 MW (megawatts) and is estimated to return annual earnings equivalent to approximately 3.5 MSEK ($422,000 US)*. Over the contracts 20-year lifespan, cumulative income is estimated to reach approximately 70 MSEK ($8.4 M US).

The installation is estimated to produce circa 2,020,000 kWh annually, with the customer committed to buying all the electricity the system produces over the contract’s 20 years. Investment in the installation, which will continue to be owned by ASRE, amounts to approximately 20.5 SEK ($2.47 M US)*. The installation is expected to be completed during the fourth quarter of 2016.

Ningbo is a vital port city with a population of 7.6 million and is located in Zhejiang Province where ASRE is also operative. ASRE has received three earlier orders in NingBo totaling 2.5 MW, which corresponds to an annual income of 5.1 MSEK ($615,000 US)* and a cumulative total income of 102 MSEK ($12 M US) over 20 years.

* Based on an exchange rate of 8.3 SEK/US dollar

CEO Frederic Telander comments:

  • Our fourth order in NingBo within 10 months is proof that doing business begets more business. Chinese companies are inclined to ”wait-and-see ”, but when they see that a concept works, they don’t hesitate to follow suit. ASRE has a goal – To sell and install 25 MW during 2016. In addition to the installation of 150 MW under the terms of a five-year framework contract agreement, we have 15.57 – 19.57 MW in sold volume this year, and thus 62-78% of this year’s goal: Our goal of obtaining 230 MW of installed solar energy capacity by 2019 feels, mildly put, within reach.”

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 subsidiary 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 majority (51%) owner and Advanced Solar Power Hangzhou Inc. 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 buildings. 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). In order to finance ASRE’s expansion in 2016, SolTech and ASP have established Advanced SolTech Sweden AB (publ.) (ASAB), which is offering a new bond issue yielding an annual rate of 6.5%, with a subscription period spanning 23 May – 7 June 2016.

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