ADVANCED SOLTECH YEAR-END REPORT 2021

CEO comment:

•During the fourth quarter, we signed contracts for 17 new plants with a total capacity of 29 MW, which gives ASAB a very strong order book. We are also seeing price increases for electricity in our most important province, Zhejiang, which will have a positive effect on our future revenues. With the listing process completed, our assessment is that we can improve our financing terms. We now have a company that is well equipped to take on a powerful growth journey in the coming years.

THE FOURTH QUARTER IN SHORT

• On October 29, 2021, trading began with Advanced Soltech

Sweden AB’s share on the Nasdaq First North Growth

Market. In connection with the IPO, the company received

issue proceeds, before issue costs, of SEK 198 million.

• The company installed a total of 14.0 (33.3) MW of

roof-based solar energy plants and had 206.5 (176.6) MW

installed and revenue-generating capacity at the end of the

quarter.

• 39 (32) million kWh were produced, an increase of 21%, which

reduced China’s CO2-related emissions by approximately

24,000 (20,000) tonnes.

• At the end of the quarter, the company had 54 (38) MW in

subscribed orders, as well as projects in progress of 125

(135) MW.

• The company signed 17 contracts amounting to a total

installed capacity of 28.9 MW.

• Price increases for electricity of approx. 15% in Advanced

Soltech’s most important province, Zhejiang.

THE FOURTH QUARTER IN NUMBERS

• Revenues (sales of electricity and subsidies) amounted to

SEK 33.8 (35.5) million, a decrease of 5 percent compared

with the previous year.

• Net sales (sales of electricity) have increased with 13 percent

from SEK 23.9 million to SEK 26.9 million, which is due to the

company’s portfolio of solar energy plants growing.

• Other operating income (subsidies) has decreased from SEK

11.6 million to SEK 6.9 million.

• Operating expenses amounted to SEK 25.1 (19.3) million,

an increase of 30 percent. The largest items to the increase

are that costs for depreciation according to plan and maintenance

of solar energy plants have increased.

• Operating profit for the quarter amounted to SEK 8.7 (16.2)

million, a decrease of 47 percent compared with the previous

year.

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

SEK 4.3 (-53.6) million and is affected by a non-cash flowaffecting

currency effect of SEK 34.1 (-32.8) million. Adjusted

for this item, profit for the year amounted to SEK -29.9 (-20.8)

million.

• Total cash flow for the quarter amounted to SEK 102.9 (54.0)

million. The positive cash flow is due to issue proceeds from

the IPO. The company has thus been able to invest in solar

energy plants compared to previous quarters during the year.

• The number of employees at the end of the period was 14

(16).

• According to the company’s estimate, the effects of the

Corona pandemic affected the company by SEK -0.9 (-1.0)

million during the quarter, due to declining revenues due to a

general price reduction of electricity tariffs.

FULL YEAR IN NUMBERS

• 172 (122) million kWh were produced, an increase of 41%.

• Revenues amounted to SEK 153.5 (138.8) million, an increase

of 11 percent compared with the previous year.

• Net sales (sales of electricity) have increased with 36 percent

from SEK 86.4 million to SEK 117.4 million, which is due to

the company’s portfolio of solar energy plants growing.

• Other operating income (subsidies) has decreased from SEK

52.4 million to SEK 36.2 million.

• Operating expenses amounted to SEK 92.9 (62.6) million,

an increase of 48 percent. The largest items to the increase

are that costs for depreciation according to plan and maintenance

of solar energy plants, roof rentals and strengthened

within the management, have increased.

• Operating profit amounted to SEK 60.7 (76.2) million, a

decrease of 20 percent compared with the previous year.

• Profit after financial items and tax amounted to SEK 16.2

(-97.0) million and is affected by a non-cash flow-affecting

currency effect of SEK 92.8 (-41.3) million. Adjusted for this

item, the result amounted to SEK -76.6 (-55.7) million.

• Total cash flow amounted to SEK 78.4 (25.7) million. The

positive cash flow is due to issue proceeds from both preference

shares and in connection with the IPO. The company

has thus been able to invest in solar energy plants during the

year.

• According to the company’s estimate, the effects of the

Corona pandemic affected the company by SEK -4.2 (-13.5)

million, due to declining revenues due to a general price

reduction. The first quarter of 2020 was affected in larger

extent of the Corona pandemic.

SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD

• The company signed one contract amounting to an installed

capacity of 2.1 MW.

• The company was awarded the prize in China as “The most

influential solar investment company 2021” for the second

year in a row.

• By the time of the report, additional eight MW has been

installed and connected. Total installed capacity is 214 MW.