Advanced SolTech Sweden

The quarter, in short
APRIL 1ST – JUNE 30TH

• The company has entered into an agreement with the Chinese company Agricultural Bank Financial Leasing Co., Ltd to refinance approximately SEK 870 million (CNY 600 million). The capital will primarily be used to repay the sale and leaseback facility with JiangSu Financial Leasing Co., Ltd. The interest rate on the new financing is 4.05%, and the amortization period has been extended from 7 to 10 years, which improves the company's cash flow. The refinancing has commenced and will continue over a period of 6-12 months.
• On June 12, 2024, the company's general meeting decided to introduce a new option program for the management team and board members, totaling about 3 million options. At the same time, a decision was made to repurchase options issued in 2021 of approximately 1.9 million options at a market value of 0 SEK per option.
• The company installed a total of 8.4 (1.7) MW of roof-based solar energy plants and had 293.3 (252.0) MW installed capacity at the end of the quarter.
• 75 (68) million kWh were produced which reduced CO2-related emissions by approximately 37,000 (33,000) tonnes. Starting from Q1 2024, we are using updated figures to calculate the savings in CO2-related emissions. Based on the latest available emission calculations in China, the savings between solar power-generated energy and China's average emissions for its electricity production have decreased from 622 grams per kWh to 490 grams per kWh. Historical comparative figures remain unchanged and are calculated based on the previous savings of 622 grams per kWh.
• At the end of the quarter, the company had 46.4 (59.7) MW in subscribed orders, as well as projects in the pipeline of 131.1 (118.0) MW.
• The company signed 4 (6) contracts amounting to a total installed capacity of 16.7 (9.5) MW.

The quarter, in numbers
APRIL 1ST – JUNE 30TH

• Revenues (sales of electricity and subsidies) amounted to SEK 64.7 (65.5) million.
• Net sales (sales of electricity to customers and Grid) amounted to SEK 55.8 (53.0) million.
• Other operating income (subsidies and resale of electricity) amounted to SEK 8.9 (12.5) million.
• Operating expenses amounted to SEK 36.7 (38.4) million
• Operating profit for the quarter amounted to SEK 27.9 (27.1) million.
• Interest expenses and similar income items amounted to SEK 22.8 (45.3) million.
• Profit for the quarter after financial items and tax amounted to SEK 6.0 (-38.4) million and was impacted by a currency effect of SEK 0.0 (-20.8) million. Adjusted for this item, profit for the quarter amounted to SEK 6.0 (-17.6) million.
• Total cash flow for the quarter amounted to SEK 34.1 (24.5) million.
• Earnings per share before dilution amounted to SEK 0.10 (-0.97).
• The number of employees at the end of the period was 19 (18).

Significant events after then end of the period

• In July 2024, the last outstanding bond, SOLT4, was extended at the company's request, which means that the final repayment date of the bond is moved to November 8, 2025.
• The company installed 17.4 MW of capacity and total installed capacity is now 310.7 MW.
• The company signed 1 contract amounting to an installed capacity of 5.0 MW. 

Year-to-date, in numbers
JANUARY 1ST – JUNE 30TH

• Revenues amounted to SEK 105.2 (106.2) million, a decrease of 1 percent compared to the previous year. The decrease is due to other operating income decreasing by 22% during the period. This reduction will continue over time as new projects do not receive grants. Electricity sales to customers and the grid increased by 4% during the period. Currency effects impacted revenues by SEK -3.7 (2.3) million.
• Net sales amounted to SEK 89.6 (86.2) million, an increase of 4 percent. Currency effects impacted net sales by SEK -3.1 (1.1) million.
• Other operating income amounted to SEK 15.8 (20.0) million.
• Operating expenses amounted to SEK 73.1 (76.2) million, a decrease of 4 percent compared to the previous year. Last year's costs include extraordinary expenses of SEK 7.2 million in connection with the extension of the bonds SOLT2 and SOLT5. Excluding this item, operating costs have increased by 6% compared to the previous year. The cost increase is mainly attributable to scheduled depreciation and maintenance costs for solar energy installations increasing, as well as a currency effect of SEK 2.2 (-1.0) million.
• Operating profit for the quarter amounted to SEK 32.2 (30.0) million. Adjusted for extraordinary costs in connection with the extension of the bonds, the operating profit for the previous year's period amounted to SEK 37.2 million.
• Interest expenses and similar income items amounted to SEK 43.8 (82.6) million. The major differences from the previous year are that the bond loans SOLT5, SOLT2, and SOLT3 were repaid in June, July, and August 2023, respectively, resulting in significantly lower interest expenses. Interest expense from, among others, JS Leasing, with a lower interest rate, has replaced the bond loans.
• Profit for the year after financial items and tax amounted to SEK -10.0 (-73.6) million and was impacted by a non-cash flow affecting currency effect of SEK 0.8 (-21.7) million. Adjusted for this item, profit for the year amounted to SEK -10.8 (-52.0) million.
• Total cash flow for the quarter amounted to SEK 38.5 (16.4) million.
• Earnings per share before dilution amounted to SEK -0.17 (-1.86).