Gigasun AB: Gigasun Year End Report 2024

CEO comment: During the quarter, the company's 200 (185) solar PV installations produced a total of 47.8 (48.2) million kWh, a decrease of 0.8% compared to the previous year. Through this, we have reduced carbon dioxide emissions by approximately 23,000 (30,000) tons. New contracts for an additional 25.3 (9.4) MW were signed during the quarter. Financially, the quarter showed sales of SEK 42.3 (47.2) million and a loss after financial items and tax of SEK -28.6 (-6.5) million. This quarter, the currency effect was marginal at SEK 1.5 (-0.7) million.

The quarter, in short
OCTOBER 1ST - DECEMBER 31ST

• The company installed a total of 29.2 (22.7) MW of roof-based solar PV installations and had 340.1 (282.6) MW installed capacity at the end of the quarter.
• Unusually weak solar radiation during the quarter, electricity production per average installed capacity decreased by 15.7% compared to the same period last year.
• 47.8 (48.2) million kWh were produced which reduced carbon dioxide related emissions by approximately 23,000 (30,000) tons. Starting from Q1 2024, we are using updated figures to calculate the savings in carbon dioxide related emissions. Based on the latest available emission calculations in China, the savings between solar power-generated energy and China's average emissions for its electricity production have decreased from 622 grams per kWh to 490 grams per kWh. Historical comparative figures remain unchanged and are calculated based on the previous savings of 622 grams per kWh.
• At the end of the quarter, the company had 38.8 (44.0) MW in subscribed orders, as well as projects in the pipeline of 142.4 (131.1) MW.
• The company signed 6 (5) contracts amounting to a total installed capacity of 25.3 (9.4) MW.

The quarter, in numbers
OCTOBER 1ST - DECEMBER 31ST

• Revenues (sales of electricity and subsidies) amounted to SEK 42.3 (47.2) million.
• Net sales (sales of electricity to customers and Grid) amounted to SEK 35.5 (38.2) million.
• Other operating income (subsidies and resale of electricity) amounted to SEK 6.8 (9.0) million.
• Operating expenses amounted to SEK 41.4 (34.8) million
• Operating profit for the quarter amounted to SEK 0.9 (12.3) million.
• Interest expenses and similar charges amounted to SEK 23.3 (19.2) million.
• Loss for the quarter after financial items and tax amounted to SEK -28.6 (-6.5) million and was impacted by a non-cash impacting tax expense of SEK -7.7 (1.1) million in connection with the debt refinancing in China and by a currency effect of SEK 1.5 (-0.7) million. Adjusted for the currency effect, loss for the quarter amounted to SEK -30.1 (-5.8) million.
• Total cash flow for the quarter amounted to SEK -6.2 (-35.1) million.
• Earnings per share before dilution amounted to SEK -0.50 (-0.11).
• The number of employees at the end of the period was 22 (19).

Year-to-date, in numbers
JANUARY 1ST - DECEMBER 31ST

• Revenues amounted to SEK 218.3 (219.1) million, a decrease of 0.4 percent compared to the previous year.
• Net sales amounted to SEK 184.8 (178.4) million, an increase of 3.6 percent compared to the previous year.
• Other operating income amounted to SEK 33.5 (40.7) million.
• Operating expenses amounted to SEK 157.6 (146.9) million, an increase of 7.3 percent compared to the previous year. Last year's costs include extraordinary expenses of SEK 7.2 million in connection with the extension of the bonds SOLT2 and SOLT5. Excluding this item, operating costs have increased by 12.8% compared to the previous year. The cost increase is mainly attributable to scheduled depreciation and maintenance costs for solar PV installations increasing.
• Operating profit for the year amounted to SEK 60.7 (72.2) million. Adjusted for extraordinary costs in connection with the extension of the bonds, the operating profit for the previous year's period amounted to SEK 79.4 million.
• Interest expenses and similar charges amounted to SEK 88.7 (120.9) million. The major differences from the previous year are that the bond loans SOLT2, SOLT3, and SOLT5 were repaid in 2023 and replaced by leasing loans from, among others, JS Leasing, with a lower interest rate. The refinancing with Agri Bank, which started in the summer of 2024 and is expected to continue throughout 2025, also reduces interest expenses.
• Loss for the year after financial items and tax amounted to SEK -32.9 (-76.3) million and was impacted by a non-cash impacting tax expense of -7.0 (1.7) MSEK in connection with the restructuring of loans in China and a currency effect of SEK 1.8 (-29.4) million. Adjusted for the currency effect, loss for the year amounted to SEK -34.7 (-46.9) million.
• Total cash flow amounted to SEK 68.3 (-41.2) million.
• Earnings per share before dilution amounted to SEK -0.58 (-1.62).
• The Board of Directors has proposed that no dividend will be distributed for 2024.

Significant events after the end of the period

• The company signed 1 contract amounting to an installed capacity of 4.2 MW.

For more information, please contact:

Max Metelius, CEO Gigasun AB (publ)
Phone: [phone]
E-mail: [e-mail]

Stefan Salomonsson, CFO Gigasun AB (publ)
Phone: [phone]
E-mail: [e-mail]

Certified Advisor is FNCA Sweden AB

About the operation

Gigasun operates in China through its wholly owned subsidiaries Advanced Soltech Renewable Energy (Hangzhou) Co. Ltd ("ASRE") and Longrui Solar Energy (Suqian) Co. Ltd. ("SQ"), and Suqian Ruiyan New Energy Co., Ltd. ("RY").

The business model consists of financing, installing, owning and managing solar PV installations on customers' roofs in China. The customer does not pay for the solar PV installation, but instead enters an agreement to buy the electricity that the solar PV installation produces under a 20-year agreement. Current income comes from the sale of electricity to customers and governmental subsidies.

The goal is to have an installed capacity of 1,000 megawatts (MW) which is fully connected to the electricity grid by 2026.

This information is information that Gigasun AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-02-19 13:00 CET.