ADVANCED SOLTECH FIRST QUARTER REPORT 2022
Electricity sales for the quarter increased by 30%
CEO comment:
It has been a challenging quarter due to COVID-restrictions and deteriorating global conditions, but we have still managed to deliver growth. During the quarter, the company's 151 solar energy plants produced a total of 33 million kilowatt hours, and through this we have reduced carbon dioxide emissions by approximately 20,000 tonnes, something we are very proud of.
The quarter, in short
January 1st – March 31st
• The company installed a total of 8.7 (5.8) MW of roof-based solar energy plants and had 213.2 (182.4) MW installed and revenue-generating capacity at the end of the quarter. During the quarter, the company decommissioned a plant, of 1.9 MW, as the roof structure was not strong enough after a fire.
• 33 (31) million kWh were produced, an increase of 5%, which reduced China’s CO2-related emissions by approximately 20,000 (19,000) tonnes. During January and February, the weather in China was unusually bad, which had a negative effect on electricity production.
• At the end of the quarter, the company had 41 (31) MW in subscribed orders, as well as projects in progress of 125 (124) MW. During the quarter, the company chose to cancel three signed orders, amounted to 10.6 MW, when the properties changed owners.
• The company signed three contracts amounting to a total installed capacity of 6.5 MW.
• The company was awarded the prize in China as “The most influential solar investment company 2021” for the second year in a row.
The quarter, in numbers
January 1st – March 31st
• Revenues (sales of electricity and subsidies) amounted to SEK 32.7 (27.0) million, an increase of 21 percent compared with the previous year. The increase is due to a larger installed base of solar energy plants. Currency effects also had a positive effect on revenues of SEK 3.9 million.
• Net sales (sales of electricity) have increased with 30 percent from SEK 19.7 million to SEK 25.6 million.
• Other operating income (subsidies) has decreased from SEK 7.3 million to SEK 7.1 million.
• Operating expenses amounted to SEK 29.0 (19.9) million, an increase of 46 percent. The largest items to the increase are that costs for depreciation according to plan and maintenance and insurance premiums of solar energy plants have increased, and negative currency effect amounted to SEK 2.9 million.
• Operating profit for the quarter amounted to SEK 3.7 (7.1) million, a decrease of 48 percent compared with the previous year. On the revenue side, the reduction in operating profit is due to lower solar radiation and a higher proportion of electricity sold to the grid instead of to the customer. During the quarter, we also had non-recurring operating expenses of approximately SEK 1.6 million, which explains a large part of the decrease.
• Profit for the year after financial items and tax amounted to SEK -7.3 (15.0) million and is affected by a non-cash flowaffecting currency effect of SEK 20.9 (40.1) million. Adjusted for this item, profit for the year amounted to SEK -28.5 (-25.1) million.
• Total cash flow for the quarter amounted to SEK -100.2 (-45.4) million.
• The number of employees at the end of the period was 15 (14).
• According to the company’s estimate, the effects of the Corona pandemic affected the company by SEK -0.6 (-0.6) million during the quarter.
Significant events after the end of the period
• Advanced Soltech’s subsidiary, ASRE, has received an award for its investments of foreign capital into renewable energy in the QiangTang district of Hangzhou.
• The company signed three contracts amounting to an installed capacity of 9.6 MW.
