The city of NingBo places an order with ASRE, SolTech’s subsidiary in China

 

ASRE is installing a 0.6 MW (600,000 watt) solar energy unit for NingBo Hetson Car Parts Co. Ltd., in NingBo.  This solar energy unit is estimated to generate an annual income for ASRE equivalent to approximately 1.05 MSEK ($123,530 US)*. Over the unit’s 20-year lifetime, total accumulated earnings are estimated to mount to circa 21 MSEK ($2,470,590 US).  This order is separate and apart from the recently presented co-operation agreement contract made with Henan Provincial Energy Conservation Co. Ltd.

NingBo is assessed as an interesting market with many buildings well suited to ASRE’s products. The city has approximately 7.6 million citizens, and a key pivotal position as a port city.

The installation is planned to take place during the first quarter, 2016. The unit’s annual production is estimated to be approximately 600,00 kWh. The customer, in line with other contracts, is committed to buying all the electricity the system produces. Investment in the installed unit, which continues to be owned by ASRE, mounts to circa 6.3 MSEK ($741,176 US).

ASRE’s earnings are consolidated in the SolTech concern’s balance sheet, where ASP’s minority share of earnings, as SolTech’s partner in ASRE, is posted as the minority’s interest.

* Based on an exchange rate of 8.5 SEK/US dollar

CEO Frederic Telander observes in a report:

  • We notice that the manufacturers of silicon solar cells are meeting all the more market resistance to the benefit of thin-film solar cells of the sort SolTech works with. If sales continue at this pace, ASRE will achieve its envisioned target goal of 230 MW for 2019 earlier than expected. Another aspect that appears to be attractive to customers is that ASRE presents a complete offer to the market, with SolTech’s products for flat-covered roofs and our partner ASP’s products for other roofs, facades and windows. In addition, the production is local.

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 allow for esthetic integration with a building’s outer shell.

SolTech Energy Sweden AB has approximately 5,600 shareholders and its shares are traded on First North at Nasdaq Stockholm, under the symbol “SOLT”. The wholly owned subsidiary Wasa Rör T Mickelsson AB is also included in the parent concern. The company’s Certified Advisor is G&W Fondkommission (securities broker). For more information see: www.soltechenergy.se.

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. 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 ($47,000,000 US).

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