21 August, 2020
Press Releases - Regulatory

Advanced Soltech Sweden AB (publ) quarterly report for the period April - June 2020

Advanced Soltech is making its strongest quarter in terms of sales to date with revenues of SEK 47 million and the business model has proven resilient to the effects of the Corona pandemic.

CEO comment:

- It has been a challenging quarter in many ways and it is satisfying to see that our solar plants continue to deliver good revenues according to our expectations. Advanced Soltech continues to invest fully in solar power plants in China and I look forward to the continued work to build a better capital structure to deliver value to our owners.

  • The Group is making its best quarter to date with revenues of 47 MSEK. Produced electricity amounted to 38 million kWh.
  • Revenues were negatively affected during the period by approximately 5

MSEK, p.g.a. Corona pandemic.

  • Profit for the period amounted to SEK 2.8 million adjusted for unrealized,

non-cash flow effects of SEK -38.5 million

  • Profit for the period after financial items and tax amounted to

SEK -35.7 million and was affected by an unrealized currency effect of

-38.5 MSEK.

  • Installed capacity (solar power plants) at the end of the period

amounted to 140 MW.

Second quarter in brief

  • In the second quarter, much of the Chinese economy has

returned to a more normal state. For ASAB's part, all plants are back to normal productionfrom the end of May.

In June, ASAB issued SEK 105 million in new bonds during the existing green bond framework of 1500 MSEK. The issue was oversubscribed. Net income of 92

MSEK goes to continued investments in new facilities.

  • A new framework agreement has been signed for the construction of

35 megawatts (MW) solar energy capacity. The agreement was concluded with

FengXian Economic Development Zone Investment Development Co. Ltd., owned by the local government of the city FengXian in JiangSu Province. Fully developed coming

the agreement to generate annual revenues of approximately SEK 31 million.

  • Max Metelius (former COO / CFO) has taken over as CEO and former CEO Frederic Telander has taken over as a working Chairman of the Board and the Board of ASAB have been strengthened with two external members,Patrick de Muynck and Vivianne Holm.
  • The work of preparing the company for a listing on First North Growth Market continues according to plan.
  • During the first half of the year, we produced 59 million kWh which has reduced CO2 emissions in China by about 38 thousand tons.
  • At the end of the first half of the year, ASAB had 46 MW in signed orders, framework agreements corresponding to 705 MW and apipeline that the company continuously processes 123 MW

First half year in summary

  • Revenues for the period amounted to SEK 62.0 million. Produced electricity amounted to

to 59 million kWh.

  • Revenues were negatively affected during the period by approximately 10.5

MSEK, due to the Corona pandemic.

  • Profit for the period amounted to SEK -22.2 million adjusted for unrealized,

non-cash flow-affecting currency effects of SEK -5.3 million.

  • Profit for the period after financial items and tax amounted to

to SEK -27.5 million

Significant events after the reporting period

  • In August, Lars Höst took over as CFO and thus replaces

Max Metelius.

  • ASAB has signed its second largest order to date, a solar power plant

of 11 MW which is estimated to generate annual revenues of approximately SEK 6.1 million, or approximately SEK 122 million under the agreement 20-year term.

  • At the time of writing, ASAB has 143 MW of installed solar power plants,

The next report will be issued in connection with Soltech Energy's quarterly report for Q3, 2020 on May 7, 2020.

The interim report can be read in full here: https://www.advancedsoltech.com/investor-relations/#pressmeddelanden

For more information contact:

Max Metelius, CEO Advanced Soltech Sweden AB (publ) Tel: 072- 316 04 44. Email: max.metelius@advancedsoltech.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 51% owned by Soltech Energy Sweden AB (publ) and 49% by Soltech's Chinese partner, Advanced Solar Power Hangzhou Inc.