Advanced Soltech releases Year End report 2020
The company’s revenues for 2020 amounted to SEK 138.8 million, an increase of 32 percent ompared with 2019. The corona pandemic has affected ASAB in terms of both revenue and growth. During the fourth quarter, revenues were negatively affected by approximately SEK 1 million and for the full year 2020, the corresponding figure was SEK 13.5 million. During the second half of the year however, increased interest in investments in sustainable energy production and Advanced Soltech was able to sign a number of important agreements with new customers.
Fourth quarter 2020, 1 October – 31 December
• Revenues during the quarter amounted to SEK 35.9 million (25.2) and operating profit to SEK 16.4 million (10.2), an increase of 42 and 61 percent, respectively, compared with 2019.
• The quarter’s profit after financial items and tax amounted to SEK -59.6 million and was affected by an unrealized, non-cash flow affecting currency effect of SEK -35.1 million. Adjusted for this item, the quarter’s profit amounted to SEK -24.5 million.
• Revenues were negatively affected during the period by approximately SEK 1.0 million as a result of the temporary price reduction for electricity by five percent introduced by the state organ NDRC in order to stimulate the Chinese economy after the effects of the pandemic.
• During the quarter, Advanced Soltech had a negative currency effect of SEK 35.1 million. Simplified, it can be said that since the company has virtually all assets (solar plants) reported in CNY and liabilities to two thirds in SEK and one third in EUR, a weaker CNY, relative to SEK and EUR, creates a negative result and a stronger CNY a positive result. However, these effects are an effect of accounting and have nothing to do with the underlying operations. The currency effect is also not realized and has no effect on the company’s cash flow.
• Total cash flow for the quarter amounted to SEK 51.9 million.
• During the quarter, the company issued preference shares for the equivalent of SEK 26.1 million and received SEK 26.0 million net after deduction of issue costs.
• During the period, solar facilities were connected to the electricity grid for a total of 33.3 MW.
Full year 2020, 1 January – 31 December
• Revenues for 2020 amounted to SEK 138.8 M (105.0), an increase of 32 percent compared with 2019.
• Operating profit for 2020 amounted to SEK 76.2 million (60.8), an increase of 25 percent compared with 2019. Profit for the year after financial items and tax amounted to SEK -97.0 million and is affected by a non-cash flow-affecting currency effect of -41, 3 MSEK. Adjusted for this item, the profit for the year amounted to SEK -55.7 million.
• In 2020, the effects of the Corona pandemic affected Advanced Soltech in two different ways. Firstly, due to reduced revenues through a general price reduction, that about 30 MW were shut down during the first and second quarters and that lower activity among customers caused lower electricity consumption, which led to a larger share of electricity being sold to the grid where ASAB is paid less. ASAB estimates the loss of revenue for this at SEK 13.5 million for the full year. The second effect was poorer conditions in the capital markets, which through poorer borrowing conditions caused higher costs, but which are nevertheless difficult to estimate.
• In 2020, Zheijang Province, where we have most of our projects installed, also had solar radiation that was approximately 7 percent lower than the normal year, which has a negative impact on revenue revenues.
• Total cash flow for the full year 2020 amounted to SEK 23.5 million.
• In 2020, the company issued preference shares for the equivalent of SEK 157.5 million and received SEK 146.2 million net after deduction of issue costs.
• In 2020, the company installed a total of 37.4 MW of roof-based solar energy plants and had 176.6 MW installed and revenue-generating capacity at the end of the year. During the year, 124.4 million kWh were produced, which reduced China’s CO2-related emissions by approximately 77,000 tonnes.
• At the end of 2020, the company had 38 MW in signed orders, including projects under construction corresponding to 2.6 MW.
Significant events during the quarter
• After the end of the period, Advanced Soltech signed a contract amounting to an installed capacity of 18.1 MW with nine customers.
• The company issued additional preference shares to a value corresponding to SEK 26.1 million, on the same terms as the offer made in September 2020. The purpose of the issue was to give Advanced Soltech increased opportunities to take advantage of business opportunities in China.
• Advanced Soltech was awarded the prize in China as “Top 10 Industrial and Commercial Distributed Solar Power Station Builders in 2020”. The award is presented by The International Energy Web, an interest group with over 500,000 members.
Significant events after the end of the period
• After the end of the period, Advanced Soltech signed a contract amounting to an installed capacity of 14.9 MW with five customers.