Crown Energy AB: Half Year Report January-June 2024
| SECOND QUARTER – APRIL-JUNE 2024 Turnover amounted to SEK 9,243 thousand (10,180). Operating profit was SEK -25,155 thousand (-12,265). Net financial items amounted to SEK 6,945 thousand (114,639). Unrealised changes in the value of properties amounted to SEK 17,007 thousand (-18,978). Profit before tax was SEK -1,202 (83,396) thousand, and profit after tax amounted to SEK -3,289 (69,810) thousand, corresponding to SEK -0.01 (0.15) per share. | HALF YEAR – JANUARY-JUNE 2024 Turnover amounted to SEK 17,415 thousand (20,865). Operating profit was SEK -44,124 thousand (-30,776). Net financial items amounted to SEK -24,389 thousand (128,387). Unrealised changes in the value of properties amounted to SEK 16,844 thousand (-26,968). Profit before tax was SEK -51,669 thousand (70,643) and profit after tax amounted to SEK -43,533 thousand (55,786) corresponding to SEK -0.08 (0.12) per share. |
| EVENTS DURING THE REPORTING PERIOD JANUARY-JUNE 2024 During the second quarter of 2024 Crown Energy received a further 8 million USD in accordance with agreement relating to the disposal of the oil & gas assets of the company, signed in October 2021. Crown Energy has now received a total of 115 million USD.On 30 April 2024 Crown Energy announced a strategic agreement with Proger S.p.A ("Proger") and the founders (earlier shareholders) of AccYouRate. In short, the agreement included acquisitions of shares from Crown Energy in SmarTee by Proger and the original founders at the same valuation as when Crown Energy acquired the shares in February of 2023. It also included conversion of loans and put and call options. The agreement was subject to the approval of the Annual General Meeting in Crown Energy.On 10 June 2024 Crown Energy held the Annual General Meeting. During the meeting a new member of the Board was elected, Patrik Fagerholm, whereby Jean Benaim left the board. During the meeting shareholders representing more than one-tenth of all shares in Crown Energy requested that the AGM’s resolutions on certain matters to be postponed to a later date. The shareholder also voted against the board of directors’ proposal on the decision upon which the strategic agreement with Proger was subject to. Since a valid resolution in accordance with the board’s proposal required approval by at least nine-tenths of both the votes cast and the shares represented at the AGM, it was consequently resolved against the board’s proposal. |
| EVENTS AFTER THE PERIODS END AccYourate, with the management support of Proger, continues to make encouraging progress by having two more pilot projects contracts signed with Acea Group Spa, the Italian infrastructure and services company and the most recent with the Eteria Consortium, and Italian leading company in construction and logistics. In addition, the CEO of AccYouRate Marco Lombardi was invited to the Italian senate to present the sensorised solutions and comfortable wearable garment, which can record and transmit vital physical information of the wearer to a central control unit to be monitored in real time and assessed. The response was positive, and the product was subsequently covered in leading Italian financial news media such as Il Sole 24 Ore.On 23 July 2024 a shareholder holding slightly more than one-tenth of all shares in Crown Energy AB (the “Company”) requested that the Company, in accordance with Ch. 7 Sec. 13 of the Swedish Companies Act, convenes an Extraordinary General Meeting to decide on the appointment of a special examiner in accordance with Ch. 10 Sec. 21-22 of the Swedish Companies Act.The date for the Extraordinary General Meeting was set to 9 September 2024 and more information about the request can be found in the notice to the meeting.On 5 August Crown Energy held the continued Annual General Meeting whereby as well as an Extraordinary General Meeting was held. During the meeting one more member to the board was elected, Fanny Wallér. With both Patrik and Fanny as new board members Crown Energy have now reinforced the board with two independent Swedish members. During the Extraordinary General Meeting the strategic agreement with Proger was once again addressed whereby the shareholders representing more than one-tenth of all shares in Crown Energyvoted against the board of directors’ proposal, and as such it was resolved against. Crown Energy is reviewing other alternatives to achieve the goals and ambitions set out with the proposed strategic agreement and is maintaining a productive dialog with the involved parties. |
CEO STATEMENT
Dear Shareholders and Investors
The second quarter of 2024 has been an intensive period of progress and development for Crown Energy. Across our various business areas, we are seeing encouraging results, further solidifying our commitment to high technology innovation, sustainability, long-term growth and transformation into a company that will leave a positive imprint in the areas where we operate.
AccYouRate Group
Our investment in AccYourate continues to prove its value and significant opportunity. During the second quarter we signed two additional pilot contracts with wellknown Italian companies: Acea Group Spa and Eteria Consortium. These bring the total number of contracts signed this year to five, further demonstrating the interest in our smart sensorized garments and monitoring services.
Additionally, AccYouRate’s CEO, Marco Lombardi, presented our innovative wearable solutions to the Italian Senate, showcasing how our sensorized garments can transmit real-time data on vital physical information and indicators. The reception was positive, and the technology has since received coverage in Italy's leading financial news media, Il Sole 24 Ore. The increased visibility is encouraging as it will drive further interest and demand for our solutions.
Adding to the positive trend, a study was recently conducted by researchers from Johns Hopkins University and the University of Bologna, led by Prof. Claudio Borghi at the Sant’Orsola Malpighi Hospital. The study, which has been published in the Journal of Medical Systems, compared AccYourate’s YouCare sensorized wearable device to a conventional Holter monitor for continuous ECG monitoring. The results were highly encouraging: 82% of the ECG signals recorded by YouCare were of good or acceptable quality, with over 99% synchronization between YouCare and the Holter device in cardiac cycles. Additionally, patients reported significantly greater comfort with YouCare, particularly for long-term use and monitoring.
This study highlights the effectiveness of YouCare in delivering Holter-quality ECG data, combined with a higher level of patient comfort, validating its potential for broader use in different healthcare situations.
It should be noted that the results validate the real-world applicability of the technology and supports its potential for revolutionizing patient care through more comfortable and effective continuous monitoring. We are proud and excited by this achievement and are confident it will help open new doors for us in the healthcare sector and especially with the commercial parties that we are engaging with.
Asset Management and Services in AngolA
Our asset management and services business in Angola continues to perform robustly. Occupancy rates have surpassed 90%, driven by a strong market demand for both residential and office solutions. We are continuoisly receiving new requests for properties, particularly from companies operating in the energy sector. Encouragingly, several of our clients are expanding their operations, requiring additional accommodation and committing to long-term leases. Many have indicated they need it for at least up to five years going forward.
To meet this increasing demand, we are exploring alternatives such as renovation and sublease of additional properites in Luanda.
The positive trend reflects the growing confidence in Angola’s economic future, and we look forward to expanding our presence in this growing market, not only within asset management and services, but also into the other business directions we are working with.
KAYA Climate Solutions
KAYA Climate Solutions, our strategic partner in environmental impact projects, continues to make progress in Angola. KAYA has secured a project location in Malanje province in Angola and working closely with provincial authorities together with our local network to establish the legal framework necessary for KAYA’s carbon credit qualification. This project represents a significant step in our commitment to sustainability and climate change mitigation, and we are excited to contribute to the long-term restoration and conservation of Angola’s ecosystems.
Clean Energy Initiatives
Aligned with our vision for sustainable growth, we have initiated discussions on clean energy opportunities in Angola, with a particular focus on hydroelectric and solar power generation. These renewable energy projects will contribute to Angola’s energy transition while positioning Crown Energy as a key player in the region's green energy future. We believe that these efforts will not only benefit the environment but also provide attractive financial returns for our shareholders.
New composition of the Board of Directors in Crown Energy
In terms of governance, I am pleased to welcome two new board members: Patrik Fagerholm and Fanny Wallér as independent members of the board. Their expertise in finance, sustainability, and public relations will be instrumental as we continue to evolve as a company.
Going forward
As we progress into the latter half of the year, we are aware of the challenges posed by our ongoing transformation. The request for an extraordinary general meeting by a shareholder holding slightly more than one-tenth of our shares has been taken into account, and we are actively engaging with stakeholders to ensure that we reach a resolution that aligns with our long-term objectives. Although these recent developments presented some obstacles with the approval of our important strategic agreement with Proger, we remain committed to finding alternative pathways to achieve the goals we set out.
Yoav Ben-Eli
CEO, Crown Energy