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Press release

Advanced Soltech signs orders in China that generates approx. SEK 117 million during the contract period

Gigasun

Advanced Soltech's subsidiary in China, has signed an order with AnHui SongLing Electric Co Ltd, a company in the consumer electronics industry. The order concerns the installation of a solar energy plant of approx. 6 megawatts (MW) and is estimated to generate annual income from electricity sales of approx. SEK 5.85 million, or approx. SEK 117 million during the agreement's 20-year term. The investment in the facility, which will be owned by Advanced Soltech's wholly owned subsidiary in China, amounts to approx. SEK 40 million and construction start is planned for the third quarter of 2022. The annual savings in carbon dioxide emissions are estimated at 3,900 tonnes. The project achieves good profitability without subsidies and is located in Anhui Province.

Advanced Soltech's CEO Max Metelius comments:

-We are very proud to present this project which both shows good profitability and contributes to great climate benefits. This will be one of our ten largest facilities. The market situation in China is currently complicated due to shutdowns caused by COVID, but despite this we succeed in both producing electricity and selling new projects, which shows that we have a very well-functioning business model.

About the China venture


in China ASAB operates through, its wholly owned local subsidiaries Advanced Soltech Renewable Energy (Hangzhou) Co. Ltd, ASRE and Longrui Solar Energy (Suqian) Co. Ltd. The business model consists of financing, installing, owning and managing solar energy installations on customers' roofs in China. The customer does not pay for the plant, but instead enters an agreement to buy the electricity that the plant produces under a 20-year agreement. Current income comes from the sale of electricity to customers and from subsidies. The goal is to have an installed capacity of 1,000 megawatts (MW) which is fully connected to the electricity grid by 2024.

Attachments


Advanced Soltech signs orders in China that generates approx. SEK 117 million during the contract period

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