Crown Energy

CEO STATEMENT

Dear Shareholders and Investors
The second quarter of 2024 has been an intensive period of progress and development for Crown Energy. Across our various business areas, we are seeing encouraging results, further solidifying our commitment to high technology innovation, sustainability, long-term growth and transformation into a company that will leave a positive imprint in the areas where we operate.

AccYouRate Group
Our investment in AccYourate continues to prove its value and significant opportunity. During the second quarter we signed two additional pilot contracts with wellknown Italian companies: Acea Group Spa and Eteria Consortium. These bring the total number of contracts signed this year to five, further demonstrating the interest in our smart sensorized garments and monitoring services.
Additionally, AccYouRate’s CEO, Marco Lombardi, presented our innovative wearable solutions to the Italian Senate, showcasing how our sensorized garments can transmit real-time data on vital physical information and indicators. The reception was positive, and the technology has since received coverage in Italy's leading financial news media, Il Sole 24 Ore. The increased visibility is encouraging as it will drive further interest and demand for our solutions.
Adding to the positive trend, a study was recently conducted by researchers from Johns Hopkins University and the University of Bologna, led by Prof. Claudio Borghi at the Sant’Orsola Malpighi Hospital. The study, which has been published in the Journal of Medical Systems, compared AccYourate’s YouCare sensorized wearable device to a conventional Holter monitor for continuous ECG monitoring. The results were highly encouraging: 82% of the ECG signals recorded by YouCare were of good or acceptable quality, with over 99% synchronization between YouCare and the Holter device in cardiac cycles. Additionally, patients reported significantly greater comfort with YouCare, particularly for long-term use and monitoring.
This study highlights the effectiveness of YouCare in delivering Holter-quality ECG data, combined with a higher level of patient comfort, validating its potential for broader use in different healthcare situations.
It should be noted that the results validate the real-world applicability of the technology and supports its potential for revolutionizing patient care through more comfortable and effective continuous monitoring. We are proud and excited by this achievement and are confident it will help open new doors for us in the healthcare sector and especially with the commercial parties that we are engaging with.

Asset Management and Services in AngolA
Our asset management and services business in Angola continues to perform robustly. Occupancy rates have surpassed 90%, driven by a strong market demand for both residential and office solutions. We are continuoisly receiving new requests for properties, particularly from companies operating in the energy sector. Encouragingly, several of our clients are expanding their operations, requiring additional accommodation and committing to long-term leases. Many have indicated they need it for at least up to five years going forward.
To meet this increasing demand, we are exploring alternatives such as renovation and sublease of additional properites in Luanda.
The positive trend reflects the growing confidence in Angola’s economic future, and we look forward to expanding our presence in this growing market, not only within asset management and services, but also into the other business directions we are working with.

KAYA Climate Solutions
KAYA Climate Solutions, our strategic partner in environmental impact projects, continues to make progress in Angola. KAYA has secured a project location in Malanje province in Angola and working closely with provincial authorities together with our local network to establish the legal framework necessary for KAYA’s carbon credit qualification. This project represents a significant step in our commitment to sustainability and climate change mitigation, and we are excited to contribute to the long-term restoration and conservation of Angola’s ecosystems.

Clean Energy Initiatives
Aligned with our vision for sustainable growth, we have initiated discussions on clean energy opportunities in Angola, with a particular focus on hydroelectric and solar power generation. These renewable energy projects will contribute to Angola’s energy transition while positioning Crown Energy as a key player in the region's green energy future. We believe that these efforts will not only benefit the environment but also provide attractive financial returns for our shareholders.

New composition of the Board of Directors in Crown Energy
In terms of governance, I am pleased to welcome two new board members: Patrik Fagerholm and Fanny Wallér as independent members of the board. Their expertise in finance, sustainability, and public relations will be instrumental as we continue to evolve as a company.

Going forward
As we progress into the latter half of the year, we are aware of the challenges posed by our ongoing transformation. The request for an extraordinary general meeting by a shareholder holding slightly more than one-tenth of our shares has been taken into account, and we are actively engaging with stakeholders to ensure that we reach a resolution that aligns with our long-term objectives. Although these recent developments presented some obstacles with the approval of our important strategic agreement with Proger, we remain committed to finding alternative pathways to achieve the goals we set out.
 
Yoav Ben-Eli
CEO, Crown Energy