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Singulus Technologies AG
Interim / Quarterly Report • Aug 29, 2024
394_10-q_2024-08-29_ad05bd47-df5e-4cec-878e-87aafe8032f6.pdf
Interim / Quarterly Report
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SINGULUS
Thin-Film Coating and Surface Treatment
REPORT FOR THE FIRST HALF 2024
Interim Report as of June 30, 2024 (unaudited)
TABLE OF CONTENT
Business Trends and Situation ..... 03
Solar Segment ..... 04
Life Science Segment ..... 06
Semiconductor Segment ..... 07
Key Financial Figures ..... 08
Order intake and order backlog ..... 08
Sales and earnings ..... 08
Balance sheet and liquidity ..... 08
Segment reporting ..... 09
Shareholders' equity ..... 10
Cash flow ..... 10
Risk Report ..... 10
Sales market risk ..... 10
Financial risks ..... 11
Project risks ..... 11
Development of costs and prices ..... 12
Research and development ..... 12
Headcount ..... 12
Personnel change in Supervisory Board ..... 12
Financing of the company ..... 13
Second Bondholder Meeting ..... 13
Annual General Meeting ..... 14
Stock ..... 14
Outlook ..... 14
Balance Sheet ..... 16
Income Statement ..... 18
Statement of Comprehensive Income ..... 19
Statement of Changes in Equity ..... 20
Statement of Cash Flows ..... 22
Annotations to the Interim Report ..... 24
Affirmation of the Legal Representatives ..... 31
Financial Key Figures ..... 32
Corporate Calendar ..... 32
Future-oriented Statements and Forecasts ..... 32
BUSINESS TRENDS AND SITUATION OF THE SINGULUS TECHNOLOGIES GROUP
" Order intake increased to $€ 52.3$ million
" Strong gross margin at $31.8 \%$
" Reorganization of financing completed
" Positive trend in Semiconductor division
" Important order received for application in battery segment
" Joint venture with JINCHEN SOLAR
The SINGULUS TECHNOLOGIES AG reports preliminary financial key figures for the $1^{\text {st }}$ half of 2024. Sales in the first half of 2024 amounted to $€ 40.7$ million and was thus around the prior-year level of $€ 41.7$ million. In the $2^{\text {nd }}$ quarter sales reached $€ 20.1$ million (previous year: $€ 25.3$ million). The EBIT in the $2^{\text {nd }}$ quarter 2024 was positive at $€ 0.5$ million (previous year: $€ 0.2$ million) and the EBIT in the $1^{\text {st }}$ half 2024 was also positive at $€ 1.2$ million (previous year: $€-0.7$ million).
The gross margin in the $1^{\text {st }}$ half of 2024 amounted to $31.8 \%$ and was thus above the prior-year level of $26.7 \%$. As of June 30, 2024, the unrestricted cash came to $€ 5.1$ million compared with $€ 11.5$ million as of December 31, 2023. The order intake during the reporting period doubled to $€ 52.3$ million compared with $€ 24.1$ million during the same period in 2023. In the $2^{\text {nd }}$ quarter 2024, the order intake came to $€ 19.1$ million (previous year: $€ 10.0$ million). The order backlog continued to grow and reached $€ 70.4$ million (previous year: $€ 67.2$ million). The headcount within the Group remained stable at 293 employees as of June 30, 2024 (December 31, 2023: 292 employees).
The Supervisory Board of the SINGULUS TECHNOLOGIES AG approved the financial statements, the consolidated financial statements and the combined status report of the Company for the business year 2023 on April 4, 2024 and adopted the annual financial statements of the Company. The publication of the annual financial report 2023 was made on the Company's homepage on April 8, 2024 under: https://www.singulus.com/ de/finanzberichte/.
First order for the application area of battery technology
SINGULUS TECHNOLOGIES has received a development order for production lines from a leading technology company, which are used for specific production processes of new solid-state batteries and which will contribute to an efficient production process. This order is a significant milestone for SINGULUS TECHNOLOGIES to make a relevant contribution to resource efficiency in times of increasing environmental awareness.
Traditional lithium-ion batteries are pushed to their limit of their potential energy density, while the demand for more powerful energy storage is increasing at the same time. Solid-state batteries are promising a new era of energy storage. Through the use of innovative materials and process technologies, they offer around 30\% higher energy density, longer lifetimes and faster charging cycles. After the successful completion of development works, SINGULUS TECHNOLOGIES is building
a production line with new process technology, which will make a significant contribution to the manufacturing of new solid-state batteries. Especially for electric vehicles, the new solid-state batteries have the potential to advance the charging speed, costs and in particular the range of cars and to develop into a global market.
Joint venture with engineering company JINCHEN for high-performance solar cells
SINGULUS TECHNOLOGIES cooperates with the Chinese engineering company JINCHEN in the course of a joint venture to offer competitive production solutions for the photovoltaics sector. The joint venture, the SINGULUS SOLAR GmbH, combined the complementary strengths of both companies: the expertise of Jinchen in the manufacturing of production machines for solar modules and the SINGULUS TECHNOLOGIES' know-how in the production of high-performance solar cells. This partnership enables to offer a broad portfolio of innovative solutions for TOPCon and HJT cell technologies. Strategically chosen production sites guarantee fast delivery times and cost-efficient solutions.
SEGMENTS
SINGULUS TECHNOLOGIES' solutions are globally employed in photovoltaics, semiconductor, medical technology, packaging, glass and automotive markets as well as for batteries and hydrogen production. Therefore, SINGULUS TECHNOLOGIES' machines and plants enhance the efficiency and productivity
in various industrial areas. In the area of coating technology we offer progressive processes such as cathode sputtering (PVD/sputtering), PECVD and vaporization, which enable precise and uniform coatings, in particular for photovoltaics, semiconductors and decorative coatings.
In addition, we develop solutions for the treatment of surfaces improving their functionality and durability. It is our goal to offer custom-made solutions meeting customer-specific requirements. We continuously invest in research and development to deliver innovative technology for the optimization of production and enhancement of competitiveness.
Solar Segment
The importance of solar energy for a sustainable energy system is well recognized. BloombergNEF reported new installations of 413 GW photovoltaics capacity in 2023 driven by China's contribution of 240 GW. While the Chinese industry dominates this market globally, the goal is to once again set up own competence areas and production capacities in the US and in Europe. However, the set-up of a functioning solar sector covering the entire valueadded chain from silicon to solar wafer up to solar cells and solar modules at a large-scale technical level will take years. This does not only concern the manufacturing of solar cells and modules but also the research and development as well as engineering capabilities. A restart with publicly funded investments is currently taking place in the US. These decisions must also be made in Europe, because otherwise the dependency on solar modules produced in China
for the energy transition will reach an absolute and almost 100\% level. SINGULUS TECHNOLOGIES is working in various committees and calls on politicians at the Federal and EU level to do the same.
The Inflation Reduction Act of 2022 in the US serves as an example for massively supporting the domestic production of renewable energies. This results in an increased demand for production equipment. SINGULUS TECHNOLOGIES is one of the few suppliers of competitive production machines and is in close contact with US customers with corresponding projects.
SINGULUS TECHNOLOGIES is the only remaining company outside of China to offer turnkey solutions
for cell and module lines, which include the entire range of machine and process technology as well as their commissioning. These turnkey solutions are built to meet the specific requirements of customers and to optimize their production processes. The Company is currently in talks with several potential investors in the US to set up complete turnkey lines for the manufacturing of solar cells and modules.
SINGULUS TECHNOLOGIES is leading in the area of thin-film solar technology and works closely with the Chinese state-owned group CNBM, the largest shareholder of the Company. Currently, key processing machines including a new large sublimation machine and a vacuum cathode sputtering machine, are being delivered and commissioned.
Life Science Segment
With the machines of the POLYCOATER and DECOLINE II type, SINGULUS TECHNOLOGIES offers innovative production methods for the decorative coating of consumer goods enabling the rapid and cost-efficient coating of many objects such as flacons, lids or emblems. With its environmentally friendly inline coating process, SINGULUS TECHNOLOGIES is increasingly establishing itself successfully over traditional processes in batch operation, which has resulted in corresponding orders in the end. In the past couple of weeks, such machines were sold to Italy and Asia, for example.
The POLYCOATER enables the chrome (VI)-free coatings for various applications. The spectrum not only covers the cosmetics sector, but also extends to suppliers in the consumer goods sector and in particular in the automotive sector, where the POLYCOATER is used for components with chrome look such as push buttons, switches and in particular also for emblems of vehicles.
In the area of medical technology, SINGULUS TECHNOLOGIES has been able to firmly establish itself as a supplier and partner for the development of sophisticated production machines for the manufacturing of contact lenses. In this area, we work together with the leading manufacturers of
SEMICON China, March 20-22, 2024 in Shanghai, China
contact lenses and help to guarantee the quality of the final production with our machines and to continuously improve the production productivity with our innovative concepts.
Semiconductor Segment
In the past couple of months, SINGULUS TECHNOLOGIES has received numerous orders for high-quality coating machines of the TIMARIS type for various applications. This success underscores the growing presence and expertise in the semiconductor industry. The coating machines sold in the first half of 2024 with a total order intake of $€ 23.5$ million are key processing machines for the manufacturing of semiconductor products of
the highest quality. The completion of additional projects is expected in the coming weeks and months. Accordingly, as projected, the business activities in the Semiconductor division will more than double compared with the previous years.
In addition, at the end of last year, SINGULUS TECHNOLOGIES presented a modular high-vacuum cathode sputtering machine of the TIMARIS STM type to a large international customer. This system offers significant progress in a specialized segment of semiconductor production, the manufacturing of micro LEDs. In the meantime, the first TIMARIS STM machine was successfully sold and delivered.
KEY FINANCIAL FIGURES
Order intake and order backlog
The order intake reached $€ 52.3$ million in the period under review. The order intake in the same period 2023 amounted to $€ 24.1$ million. In the $2^{\text {nd }}$ quarter the order intake came to $€ 19.1$ million (previous year: $€ 10.0$ million). The order backlog amounted to $€ 70.4$ million as of June 30, 2024 (previous year: $€ 67$ million).
Sales and earnings
Sales in the first six months of the business year 2024 stood at $€ 40.7$ million, around the prior year level of $€ 41.7$ million. The Company projects an additional improved utilization level in the coming quarters. Specifically, sales in the first half-year of 2024 are split into $€ 24.0$ million in the Solar segment (previous year: $€ 25.2$ million), Life Science at $€ 11.1$ million (previous year: 12.2 million) and Semiconductor at $€ 5.6$ million (previous year: $€ 4.3$ million). In the quarter under review sales were split into $€ 12.3$ million in the Solar segment (previous year: $€ 15.8$ million), Life Science at $€ 4.1$ million (previous year: 7.5 million) and Semiconductor at $€ 3.7$ million (previous year: $€ 2.1$ million).
For the first half of 2024 the percentage regional sales breakdown was as follows: Europe 26.1\% (previous year: 58.2\%), Asia 60.4\% (previous year: 37.0\%), North and South America 13.5\% (previous year: 4.6\%) as well as Africa and Australia 0.0\% (previous year: $0.2 \%)$. The percentage regional breakdown of sales for the $2^{\text {nd }}$ quarter 2024 was as follows: Asia 49.0\% (previous year: 37.0\%), Europe 24,0\% (previous year: 58.2\%), North and South America 27.0\% (previous year: $4.6 \%$ ) as well as Africa and Australia 0.0\% (previous year: $0.2 \%$ ).
In the first half of 2024 the gross profit margin was above the prior-year level and amounted to $31.8 \%$ (previous year: $26.7 \%$ ). In the 2nd quarter 2024, the gross profit margin improved significantly to $33.8 \%$ (previous year: $25.2 \%$ ).
The operating expenses in the first half-year 2024 in the amount of $€ 11.7$ million were around the prior-year level ( $€ 11.8$ million).
In the quarter under review the expenses for research and development amounted to $€ 1.7$ million (previous year: $€ 1.7$ million), for sales \& marketing and customer services to $€ 2.7$ million (previous year: $€ 2.8$ million) and general \& administrative expenses to $€ 2.0$ million (previous year: $€ 1.8$ million). The other operating expenses came to $€ 0.0$ million (previous year: $€ 0.3$ million), the other operating income stood at $€ 0.1$ million (previous year: $€ 0.4$ million).
In the entire first half of 2024 earnings before interest and taxes (EBIT) were positive at $€ 1.2$ million (previous year: $€-0.7$ million). In the $2^{\text {nd }}$ quarter 2024 the order intake came to $€ 0.5$ million (previous year: $€ 0.2$ million).
Balance sheet and liquidity
In the period under review the short-term assets totaled $€ 47.3$ million and were thus below the prior-year level (December 31, 2023: $€ 52.7$ million). The main reason is the decline in cash and cash equivalents ( $€-6.4$ million) as well as raw materials and suppliers ( $€-5.0$ million) in connection with the processing of current customer orders. The Company expects material milestone payments from customers in connection with the relevant projects in the next couple of months.
| Segment reporting from January 1 to June 30, 2024 and 2023 | Segment Solar |
Segment Life Science | Segment Semiconductor | SINGULUS TECHNOLOGIES Group | ||||
|---|---|---|---|---|---|---|---|---|
| 2024 million € | 2023 million € | 2024 million € | 2023 million € | 2024 million € | 2023 million € | 2024 million € | 2023 million € | |
| 6-month figures Sales (gross) | 24.0 | 25.2 | 11.1 | 12.2 | 5.6 | 4.3 | 40.7 | 41.7 |
| Sales deduction and individual selling expenses | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Sales (net) | 24.0 | 25.2 | 11.1 | 12.2 | 5.6 | 4.3 | 40.7 | 41.7 |
| Write-offs and amortization | $-0.8$ | $-0.9$ | $-0.4$ | $-0.4$ | $-0.1$ | $-0.1$ | $-1.3$ | $-1.4$ |
| Operating result (EBIT) | 1.7 | $-1.3$ | $-0.6$ | 0.8 | 0.1 | $-0.2$ | 1.2 | $-0.7$ |
| Financial result | $-1.5$ | $-1.2$ | ||||||
| Earnings before taxes | $-0.3$ | $-1.9$ |
| $2^{\text {nd }}$ Quarter | ||||||||
|---|---|---|---|---|---|---|---|---|
| Sales (gross) | 12.3 | 15.8 | 4.1 | 7.5 | 3.7 | 2.1 | 20.1 | 25.4 |
| Sales deduction and individual | ||||||||
| selling expenses | 0.1 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.1 | 0.0 |
| Sales (net) | 12.4 | 15.8 | 4.1 | 7.5 | 3.7 | 2.1 | 20.2 | 25.4 |
| Write-offs and amortization | $-0.4$ | $-0.5$ | $-0.2$ | $-0.2$ | $-0.1$ | $-0.1$ | $-0.7$ | $-0.8$ |
| Operating result (EBIT) | 1.6 | $-0.6$ | $-1.5$ | 1.2 | 0.4 | $-0.4$ | 0.5 | 0.2 |
| Financial result | $-0.7$ | $-0.6$ | ||||||
| Earnings before taxes | 0.2 | $-0.4$ |
The long-term assets amounted to $€ 18.9$ million as of June 30, 2024, around the level of the prior period (December 31, 2023: € 19.1 million).
The short-term debt decreased slightly compared with the level at the end of 2023 and amounted to $€ 84.0$ million as of June 30, 2024 (December 31, 2023:
$€ 87.3$ million), mainly due to the reduction of liabilities from construction orders ( $€-6.0$ million) in connection with the progress of ongoing projects.
The long-term assets amounted to $€ 27.0$ million as of June 30, 2024, around the level of the prior period (December 31, 2023: € 29.1 million).
Shareholders' equity
The shareholders' equity within the Group amounts to $€-44.8$ million as of June 30, 2024, which is fully attributable to the shareholders of the parent Company (December 31, 2023: €-44.6 million). However, the Company expects a significant improvement in the shareholders' equity position in the coming years.
Cash flow
In the $2^{\text {nd }}$ quarter of 2024 the operating cash flow in the Group was negative at $€-7.6$ million (previous year: $€-20.6$ million). This is mainly due to the completed works of customer projects with advance payments in the prior periods. The cash flow from investing activities came to $€-1.2$ million (previous year: $€-1.5$ million). The cash flow from financing activities came to $€ 2.5$ million overall (previous year: $€ 21.2$ million). Overall, the amount of cash and cash equivalents declined by $€ 6.4$ million in the first half of 2024 to currently $€ 5.1$ million (December 31, 2023: € 11.5 million).
RISK REPORT
As an internationally operating Company SINGULUS TECHNOLOGIES continuously monitors latest developments and analyses their economic impacts. In particular, the current developments in our main sales market, China, are closely monitored by management.
The various uncertainties and global unrest in different parts of the world can give rise to far-reaching risks. The Russia-Ukraine war or the conflict in the Middle East could, for example, increasingly negatively
impact the sales trend, production processes as well as the procurement and logistics processes due to interruption of the supply chains or shortages for components as well as raw materials and preproducts. From today's point of view, the increases of commodities and energy prices do not appear to have a major impact on the Company. A majority of the purchase prices are already fixed for ongoing customer projects, for current customer negotiations potential increases of materials can be passed on to the contractual partners to a large extent. So far, there have not been any significant, negative impacts on the Company's main sales markets.
Within the current risk reporting, the sales market risk for the segments Solar and Life Science as well as the liquidity risk and the project risk were defined as material risks for the Group.
Further information can be found in the risk report published in the 2023 annual financial report.
Sales market risk
Due to the high importance of this business area, the market risk in the Solar segment is rated with a relevance score of 5 . Management expects sustained high sales in the Solar segment in the next couple of years. Despite the entry into new business areas, this business segment will continue to provide the largest share of sales and earnings contributions in the current business year 2024. In view of the significant decline in orders in previous years and the continuing delays in the completion of ongoing projects the probability of occurrence was assessed as high and the relevance as a threat to the Company's continued existence.
Besides the core segment Solar, the segment Life Science is gaining increasing importance for the further course of business in the next couple of years. The Company expects a steady expansion of the business operations within this segment.
Due to the further increasing importance of this segment for the key financial results for the Company, the sales market risk for Life Science is rated with a relevance score of 5 as well as with a high probability of occurrence. If the assumed order intake in this segment falls significantly short of expectations in the following business year, this would threaten the continuation of the Company.
Financial risks
Currently, we still rate the liquidity risk unchanged with a relevance score of 5 and the credit risk with a relevance score of 3 . Despite the receipt of additional partial payments from customer projects and taking out loans, we still rate the probability of occurrence of the liquidity risk as high. In particular, the timely receipt of partial payments as well as the assignment of additional large projects are required. Material delays in payments or credit losses within these major projects could not be compensated for. Moreover, it is required to win additional, substantial major orders by the end of 2025. Furthermore, the repayment of the super senior loan in the amount of $€ 4.0$ million in December 2024 must be guaranteed from the financial resources generated by the Company. The main shareholder Triumph guarantees to provide the Company with sufficient cash and cash equivalents until March 31, 2025 to enable the Company to meet its financial obligations until the conclusion, repayment
or successful settlement of certain currently existing financing components and contracts, but no later than the end of March 31, 2025.
We also refer to the comments on financial risks in the Risk Report of the Annual Report regarding the Company's financing.
These events and circumstances indicate that there are material uncertainties, which can raise doubts as to the ability of the Company and the Group to continue to operate as a going concern within the meaning of Art. 322 Para. 2 Sent. 3 HGB. Accordingly, the SINGULUS TECHNOLOGIES Group might not be able to realize its assets as well as to cover its liabilities during the regular course of its operations.
Project risks
If risks materialize in connection with the order processing, they could have a material adverse impact on the business activities in particular in connection with the implementation of larger projects. In particular, the risk of missing the project schedule or project expenses as well as failing to meet the acceptance criteria is viewed as being material. In particular, the scheduled order processing of our major projects is of great importance for the continued existence of the Company and the Group.
If the projects fail as a whole or in parts or the planned economic success is not sufficiently realized, this could have material negative impacts on the asset, financial and earnings situation of the Company up to threatening the existence of the Company.
In summary, we still rate the project risks with an unchanged relevance score of 5 . The probability of occurrence is assessed as being medium.
DEVELOPMENT OF COSTS AND PRICES
From our point of view, the selling prices developed as planned during the period under review. Also the procurement prices and as a result the cost of goods sold were within our expectations. Generally, the assessment of the future development of purchase prices and the realizable sales prices is difficult due to various uncertainties and the global unrest in several parts of the world. A majority of the purchase prices are already fixed for ongoing customer projects, for current customer negotiations potential increases of materials can be passed on to the contractual partners to a large extent. So far, there have not been any significant, negative impacts on the Company's main sales markets.
RESEARCH AND DEVELOPMENT
At $€ 4.7$ million in total the expenses for developments in the first half of 2024 were below the prior-year's level of $€ 6.0$ million. The expenses for development activities came to $€ 1.9$ million (previous year: $€ 3.6$ million) in the quarter under review.
HEADCOUNT
As of June 30, 2024, the headcount within the SINGULUS TECHNOLOGIES Group of 293 employees remained at the level of the end of the previous business year (December 31, 2023: 292).
PERSONNEL CHANGE IN SUPERVISORY BOARD OF THE SINGULUS TECHNOLOGIES AG
The amendment to the Articles of Association for the expansion of the Supervisory Board of SINGULUS TECHNOLOGIES AG resolved at the Annual General Meeting on December 14, 2023 became legally effective upon entry in the commercial register on January 24, 2024. The candidate for the Supervisory Board from the largest shareholder, CNBM, was Mr. Denan Chu. He was appointed by the Annual General Meeting on December 14, 2023 with a large majority.
Supervisory Board member Dr. Silke Landwehrmann announced in January of this year that she would be stepping down from her position due to a significant expansion of her professional responsibilities. The rest of the Supervisory Board was unable to influence this decision and very much regretted the departure of Dr. Landwehrmann. Ms. Martina Rabe then agreed to take the seat on the Supervisory Board and was appointed as a member of the Supervisory Board by the responsible Local Court in Aschaffenburg until the next Annual General Meeting on July 25, 2024. Ms. Rabe resigned from the Board of Directors on June 18, 2024 for personal reasons. The Supervisory Board also had no influence on this decision.
The Supervisory Board and Executive Board are delighted that the Company has gained another highly competent new member in Dr. Jutta Menninger. The Annual General Meeting on July 25, 2024 confirmed the appointment of Dr. Menninger to the Supervisory Board.
FINANCING OF THE COMPANY
To secure liquidity SINGULUS TECHNOLOGIES has the following essential financing components at its disposal.
Since May 2022, a working capital credit line in the amount of $€ 10.0$ million has been in place with the Bank of Shanghai, Hong Kong. The repayment of the loan is guaranteed to the bank by Triumph Science \& Technology Group Co. Ltd, Beijing, China (hereinafter referred to as "Triumph"). The initial maturity of the agreement was twelve months and was prolonged by an additional year until March 31, 2024 with effect from January 31, 2023. When the original loan expired, a subsequent loan was concluded with the Bank of Shanghai on the same terms for a further twelve months with effect from May 9, 2024.
As per agreement on February 3, 2023, SINGULUS TECHNOLOGIES received financing in the amount of $€ 20.0$ million from Triumph. In return for the agreed financing, SINGULUS TECHNOLOGIES granted Triumph the option for exclusive rights of use for specific thin-film technology in the Solar division. The financing was disbursed in two tranches on February 6, 2023 in the amount of $€ 9.6$ million and on March 27, 2023 in the amount of $€ 10.4$ million. These disbursed funds were granted with a minimum availability period of 18 months from the date of disbursement. At that time, it was planned to transfer part of the financing to a second loan with a volume
of $€ 10.0$ million and a minimum term of twelve months with the Bank of Shanghai in the course of 2023. However, this second bank loan is not at SINGULUS TECHNOLOGIES' disposal at present. The Company is currently in negotiations with Triumph about the restructuring of the entire financing. However, no agreement has been reached in the past couple of months.
On March 29, 2024, Triumph had declared in writing to SINGULUS TECHNOLOGIES that it would provide our Company with sufficient liquidity until the conclusion, repayment or successful settlement of these currently existing financing components and contracts described above, but no later than the end of March 31, 2025, so that the Company can meet its financial obligations.
In this context, the two parties concluded a corresponding agreement on operational implementation in August 2024.
SECOND BONDHOLDER MEETING ON MAY 24, 2024
The second bondholders' meeting regarding the SINGULUS bond with ISIN DE000A2AA5H5 and WKN A2AA5H had a quorum of $43.23 \%$. Of the votes cast, a majority of $75 \%$ would have been required to adopt the four proposed resolutions. Overall, around $69 \%$ of the votes cast were in favor of the Company's proposals, which were therefore not adopted.
As the proposed resolutions were not based on short-term requirements but were of a provisional nature, the Company is preparing to implement its plans without the relief provided by the provisional resolutions. Appropriate capital was made available for this purpose by the Annual General Meeting on July 25, 2024.
ANNUAL GENERAL MEETING ON JULY 25, 2024
At the Annual General Meeting of the SINGULUS TECHNOLOGIES AG in Frankfurt am Main on July 25, 2025 31.63\% of the capital was present.
The Annual General Meeting approved all items on the agenda, including the discharge of the Boards, with the required majorities. Dr. Jutta Menninger was elected as a new member of the Supervisory Board by the Annual General Meeting with 99.91\%.
THE SINGULUS TECHNOLOGIES STOCK
On April 2, 2024 the shares of SINGULUS TECHNOLOGIES closed at $€ 1.10$ and subsequently recovered to $€ 1.85$ in mid-May after the receipt of the auditor's approval. Since then, the share price has declined again and stood at $€ 1.36$ at the printing deadline.
The freefloat of the SINGULUS TECHNOLOGIES shares currently amounts to around $67.29 \%$.
OUTLOOK FOR THE BUSINESS YEAR 2024
SINGULUS TECHNOLOGIES had a good start in 2024 and expects this momentum to continue during the remainder of the year. At the end of last year, sales were forecast in a range from $€ 120.0$ to 130.0 million and an EBIT in a low double-digit million Euro range.
Despite the favorable development in the first six months, SINGULUS TECHNOLOGIES had to reduce its forecast for the current business year to sales of $€ 95.0$ to $€ 105.0$ million. The reason is the characteristics of the underlying project activities. There are promising new initial efforts for projects in the Solar division outside of China and in particular in the US. However, the preparation and financing of such extensive projects are much slower than initially expected. Nevertheless, we are very optimistic, that although the customers have delayed these projects in the past months, they will still realize them. We still expect, that the favorable development will also continue in the Semiconductor and Life Science segments.
These trends should then result in an improved earnings situation compared with the business year 2023 with an operating result (EBIT) in a range from $€ 3.0$ million to $€ 6.5$ million.
To reach this forecast, it goes without saying, that the ongoing projects are completed without any significant delays. Furthermore, material new orders have to be gained in the coming months of 2024. Among the prerequisites are a favorably developing market for production machines for solar cells in the key target markets and a corresponding, successful implementation of the planned major projects in the Solar division. Furthermore, additional and substantial orders have to be won and implemented in the Life Science and Semiconductor segments to support the development.
Best regards,
The Executive Board
SINGULUS TECHNOLOGIES AG
SINGULUS TECHNOLOGIES GROUP BALANCE SHEET
as of June 30, 2024 and December 31, 2023
| ASSETS | June 30, 2024 | Dec. 31, 2023 |
|---|---|---|
| [million $G$ ] | [million $G$ ] | |
| Cash and cash equivalents | 5.1 | 11.5 |
| Restricted cash | 2.0 | 3.2 |
| Trade receivables | 2.4 | 2.9 |
| Receivables from construction contracts | 20.9 | 17.2 |
| Other receivables and other assets | 6.9 | 5.2 |
| Total receivables and other assets | 30.2 | 25.3 |
| Raw materials, consumables and supplies | 4.9 | 9.9 |
| Work in process | 5.1 | 2.8 |
| Total inventories | 10.0 | 12.7 |
| Total current assets | 47.3 | 52.7 |
| Property, plant and equipment | 6.8 | 7.1 |
| Capitalized development costs | 4.6 | 4.4 |
| Goodwill | 6.7 | 6.7 |
| Other intangible assets | 0.6 | 0.7 |
| Deferred tax assets | 0.2 | 0.2 |
| Total non-current assets | 18.9 | 19.1 |
| June 30, 2024 | Dec. 31, 2023 | |
|---|---|---|
| EQUITY AND LIABILITIES | (million $£$ ) | (million $£$ ) |
| Trade payables | 12.9 | 8.9 |
| Prepayments received | 5.8 | 5.8 |
| Liabilities from construction contracts | 18.6 | 24.6 |
| Financing liabilities from the issuance of loans and other financing liabilities | 34.0 | 29.3 |
| Financing liabilities from the issuance of bonds | 0.2 | 0.2 |
| Current leasing liabilities | 0.8 | 0.8 |
| Other current liabilities | 5.2 | 8.7 |
| Provisions for restructuring measures | 0.2 | 0.3 |
| Provisions for taxes | 0.5 | 0.6 |
| Other provisions | 5.8 | 8.1 |
| Total current liabilities | 84.0 | 87.3 |
| Financing liabilities from the issuance of bonds | 11.8 | 11.8 |
| Financing liabilities from the issuance of loans | 0.0 | 2.0 |
| Non-current leasing liabilities | 0.2 | 0.2 |
| Pension provisions | 12.1 | 12.2 |
| Deferred tax liabilities | 2.9 | 2.9 |
| Total non-current liabilities | 27.0 | 29.1 |
| Total liabilities | 111.0 | 116.4 |
| Subscribed capital | 8.9 | 8.9 |
| Capital reserves | 19.8 | 19.8 |
| Other reserves | 1.8 | 1.8 |
| Retained earnings | $-75.3$ | $-75.1$ |
| Equity attributable to owners of the parent | $-44.8$ | $-44.6$ |
| Total equity | $-44.8$ | $-44.6$ |
| Total equity and liabilities | 66.2 | 71.8 |
SINGULUS TECHNOLOGIES GROUP INCOME STATEMENT
from January 1 to June 30, 2024 and 2023
| 2nd Quarter 2024 | 2nd Quarter 2023 | Jan. 1 - June 30, 2024 |
Jan. 1 - June 30, 2023 |
|||||
|---|---|---|---|---|---|---|---|---|
| 2024 | 2024 | 2024 | 2024 | |||||
| [million €] | $\%$ | [million €] | $\%$ | [million €] | $\%$ | [million €] | $\%$ | |
| Revenue (gross) | 20.1 | 100.0 | 25.4 | 100.0 | 40.7 | 100.2 | 41.7 | 100.2 |
| Sales deductions and direct selling costs | 0.0 | 0.0 | 0.0 | 0.0 | $-0.1$ | $-0.2$ | $-0.1$ | $-0.2$ |
| Revenue (net) | 20.1 | 100.0 | 25.4 | 100.0 | 40.6 | 100.0 | 41.6 | 100.0 |
| Cost of sales | $-13.3$ | $-66.2$ | $-19.0$ | $-74.8$ | $-27.7$ | $-68.2$ | $-30.5$ | $-73.2$ |
| Gross profit on sales | 6.8 | 33.8 | 6.4 | 25.2 | 12.9 | 31.8 | 11.1 | 26.7 |
| Research and development | $-1.7$ | $-8.5$ | $-1.7$ | $-6.7$ | $-2.6$ | $-6.4$ | $-3.1$ | $-7.5$ |
| Sales and customer service | $-2.7$ | $-13.4$ | $-2.8$ | $-11.0$ | $-5.5$ | $-13.5$ | $-4.9$ | $-11.8$ |
| General administration | $-2.0$ | $-10.0$ | $-1.8$ | $-7.1$ | $-3.8$ | $-9.4$ | $-3.9$ | $-9.4$ |
| Other operating expenses | 0.0 | 0.0 | $-0.3$ | $-1.1$ | $-0.1$ | $-0.2$ | $-0.3$ | $-0.7$ |
| Other operating income | 0.1 | 0.5 | 0.4 | 1.6 | 0.3 | 0.7 | 0.4 | 1.0 |
| Total operating expenses | $-6.3$ | $-31.3$ | $-6.2$ | $-24.4$ | $-11.7$ | $-28.8$ | $-11.8$ | $-28.4$ |
| Operating result (EBIT) | 0.5 | 2.5 | 0.2 | 0.8 | 1.2 | 3.0 | $-0.7$ | $-1.7$ |
| Finance income | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Finance costs | $-0.7$ | $-3.5$ | $-0.6$ | $-2.4$ | $-1.5$ | $-3.7$ | $-1.2$ | $-2.9$ |
| EBT | $-0.2$ | $-1.0$ | $-0.4$ | $-1.5$ | $-0.3$ | $-0.7$ | $-1.9$ | $-4.6$ |
| Tax expense/income | 0.0 | 0.0 | 0.1 | 0.4 | 0.1 | 0.2 | 0.1 | 0.2 |
| Profit or loss for the period | $-0.2$ | $-1.0$ | $-0.3$ | $-1.1$ | $-0.2$ | $-0.5$ | $-1.8$ | $-4.3$ |
| Thereof attributable to: | ||||||||
| Owners of the parent | $-0.2$ | $-0.3$ | $-0.2$ | $-1.8$ | ||||
| Non-controlling interests | 0.0 | 0.0 | 0.0 | 0.0 | ||||
| [€] | [€] | [€] | [€] | |||||
| Basic earnings per share based on the profit for the period (in EUR) attributable to owners of the parent | $-0.03$ | $-0.02$ | $-0.20$ | |||||
| Diluted earnings per share based on the profit for the period (in EUR) attributable to owners of the parent | $-0.03$ | $-0.02$ | $-0.20$ |
SINGULUS TECHNOLOGIES GROUP STATEMENT OF COMPREHENSIVE INCOME
from January 1 to June 30, 2024 and 2023
| 2nd Quarter 2024 | 2nd Quarter 2023 | Jan. 1 - June 30, 2024 |
Jan. 1 - June 30, 2023 |
|
|---|---|---|---|---|
| (million $($ ) | (million $($ ) | (million $($ ) | (million $($ | |
| Profit or loss for the period | $-0.2$ | $-0.3$ | $-0.2$ | $-1.8$ |
| Items that will be reclassifiedto profit and loss: Exchange differences in the fiscal year |
0.0 | $-0.4$ | 0.0 | $-0.8$ |
| Total income and expense recognized directly in other comprehensive income | 0.0 | $-0.4$ | 0.0 | $-0.8$ |
| Total comprehensive income | $-0.2$ | $-0.7$ | $-0.2$ | $-2.6$ |
Thereof attributable to:
Owners of the parent
$-0.2$
$-0.7$
$-0.2$
SINGULUS TECHNOLOGIES GROUP STATEMENT OF CHANGES IN EQUITY
as of June 30, 2024 and 2023
| Equity Attributable to Owners of the Parent | Equity | ||
|---|---|---|---|
| Other Reserves | Retained Earnings | Total | |
| Actual Gains and Losses from Pension Commitments [million €] | Other Retained Reserves [million €] | [million €] | [million €] |
| $-2.4$ | $-65.3$ | $-33.6$ | $-33.6$ |
| 0.0 | $-1.8$ | $-1.8$ | $-1.8$ |
| 0.0 | 0.0 | $-0.8$ | $-0.8$ |
| 0.0 | $-1.8$ | $-2.6$ | $-2.6$ |
| $-2.4$ | $-67.1$ | $-36.2$ | $-36.2$ |
| $-3.0$ | $-75.1$ | $-44.6$ | $-44.6$ |
| 0.0 | $-0.2$ | $-0.2$ | $-0.2$ |
| 0.0 | 0.0 | 0.0 | 0.0 |
| 0.0 | $-0.2$ | $-0.2$ | $-0.2$ |
| $-3.0$ | $-75.3$ | $-44.8$ | $-44.8$ |
SINGULUS TECHNOLOGIES GROUP STATEMENT OF CASH FLOWS
from January 1 to June 30, 2024 and 2023
| Jan. 1 - June 30, 2024 |
Jan. 1 - June 30, 2023 |
|
|---|---|---|
| [million $[$ | [million $[$ | |
| Cash flows from operating activities | ||
| Profit or loss for the period | $-0.2$ | $-1.8$ |
| Adjustment to reconcile profit or loss for the period to net cash flow | ||
| Amortization, depreciation and impairment of non-current assets | 1.3 | 1.4 |
| Contribution to the pension provisions | 0.3 | 0.0 |
| Profit/loss from disposal of non-current assets | 0.0 | 0.0 |
| Other non-cash expenses/income | 0.0 | $-0.1$ |
| Net finance costs | 1.5 | 1.2 |
| Net tax expense | $-0.1$ | $-0.1$ |
| Change in trade receivables | 0.6 | $-0.2$ |
| Change in construction contracts | $-9.9$ | $-16.7$ |
| Change in other receivables and other assets | $-1.7$ | 0.2 |
| Change in inventories | 2.7 | 0.7 |
| Change in trade payables | 4.0 | 2.0 |
| Change in other liabilities | $-3.4$ | $-1.3$ |
| Change in prepayments | 0.0 | $-3.5$ |
| Change in provisions from restructuring measures | $-0.1$ | $-1.8$ |
| Change in further provisions | $-2.6$ | $-0.6$ |
| Interest paid | 0.0 | 0.0 |
| Tax paid | 0.0 | 0.0 |
| $-7.4$ | $-18.8$ | |
| Net cash from/used in operating activities | $-7.6$ | $-20.6$ |
| Jan. 1 - June 30, 2024 [million $G$ ] |
Jan. 1 - June 30, 2025 [million $G$ ] |
|
|---|---|---|
| Cash flows from investing activities | ||
| Cash paid for investments in development projects | $-0.7$ | $-0.8$ |
| Cash paid for investments in other intangible assets and property, plant and equipment | $-0.5$ | $-0.7$ |
| Proceeds from the sale of assets and liabilities classified as held for sale | 0.0 | 0.0 |
| Net cash from/used in investing activities | $-1.2$ | $-1.5$ |
Cash flows from financing activities
| Cash used to pay bond interest | $-0.3$ | $-0.3$ |
|---|---|---|
| Cash received/used on the issuance of loans and | 2.0 | 22.0 |
| other financing commitments | $-0.3$ | 0.0 |
| Cash used to pay loan interest | $-0.2$ | $-0.2$ |
| Cash used to pay leasing liabilities | 1.3 | $-0.3$ |
| Cash received/used on financial assets subject to restrictions on disposal | 21.2 | |
| Net cash from/used in financing activities | 2.5 | -0.9 |
| Increase/decrease in cash and cash equivalents | -6.3 | -0.2 |
| Effect of exchange rate changes | 11.5 | 18.7 |
| Cash and cash equivalents at the beginning of the reporting period | 17.6 | |
| Cash and cash equivalents at the end of the reporting period |
Cash and cash equivalents comprise monetary investments with a remaining maturity of up to three months at the time of acquisition.
Financial assets subject to restrictions on disposal are presented separately in the balance sheet. These financial assets relate to the Company's financing transactions and are included in the consolidated cash flow statement as cash flows from financing activities.
ANNOTATIONS TO THE INTERIM REPORT
The SINGULUS TECHNOLOGIES Aktiengesellschaft (in the following also "SINGULUS" or the "Company") is an exchange-listed capital Company domiciled in Germany. The presented consolidated financial accounts for the interim reporting of the SINGULUS TECHNOLOGIES AG and its subsidiaries ("Group") for the first six months of the business year 2024 were approved for publication by resolution of the Executive Board as per August 26, 2024.
The consolidated financial accounts were drawn up in Euro ( $€$ ). If not stated otherwise, all figures are in millions of Euro (million $€$ ). Due to statements in million $€$ differences in rounding may occur.
Accounting and valuation principles
The preparation of the abbreviated consolidated interim results for the period from January 1 to June 30, 2024 was made pursuant to IAS 34 "Interim Financial Reporting". The interim financial accounts were neither audited nor reviewed by auditors.
The consumption of more than half of the nominal capital pursuant to HGB was incurred in the business year 2017 and was reported on September 21, 2017. The extraordinary shareholders' meeting was convened on November 29, 2017. In the course of the extraordinary general meeting on October 29, 2021 and well as during the ordinary general meeting on July 19, 2023, pursuant to Art. 92 Para. 1 AktG the Executive Board again reported on the loss of the nominal capital pursuant to HGB of the parent Company. The background to the depletion of shareholders' equity was presented, which
was mainly due to the timing of revenue recognition pursuant to HGB and IFRS and the operating losses resulting from the underutilization of the organization in recent years.
However, from today's point of view, the Company has sufficient available liquid funds to safeguard the course of business and therefore draws up the financial statement according to the going-concern assumptions.
Both in view of achieving the expected financial results and also in terms of the future trend of the liquidity situation, the SINGULUS TECHNOLOGIES Group is to a large extent dependent on the further development of the business activities with select, large customers. A sufficient level of liquidity of the Company and of the Group in the next 24 months after the completion of 2023 can only be maintained, if the plans for this period of time are realized. It is an essential prerequisite for the planning that the partial payments, which are due based on the already contracted large orders, will actually be made and without material delay. Moreover, it is required to win additional, substantial major orders by the end of 2025. Furthermore, the repayment of the super senior loan in the amount of $€ 4.0$ million in December 2024 must be guaranteed from the financial resources generated by the Company. The main shareholder Triumph guarantees that the Company will be able to meet its financial obligations to the Bank of Shanghai until March 31, 2025.
These events and circumstances indicate that there are material uncertainties which can raise doubts as to the ability of the Company to continue to operate as a going concern within the meaning of Art. 322 (2) sentence 3 HGB.
The preparation of the interim results pursuant to IAS 34 requires estimates and assumptions by the management, affecting the level of the reported assets, liabilities, sales, income, expenses as well as contingent liabilities. These assumptions and estimates mainly affect the Group-consistent determination of useful life expectancy, the write-offs of assets, the valuation of provisions, the recoverability of receivables, the determination of realizable terminal values with regards to inventories as well as the realizability of future tax relieves. The actual values can differ from the assumptions and estimates made on a case by case basis. Any changes are recognized as profit and loss at the time of the knowledge gained. The accounting and valuation methods applied for the consolidated accounts for the interim reporting correspond to those applied for the most recent published consolidated financial report as of the end of the business year 2023. For a detailed description of the accounting principles please refer to the notes of the consolidated financial statements of our Annual Report 2023.
Scope of consolidation
In addition to the SINGULUS TECHNOLOGIES AG, the consolidated financial statements include all companies, which are legally or factually controlled by the Company. In the interim report as of June 30, 2024, in addition to the SINGULUS TECHNOLOGIES AG in total two domestic and nine foreign subsidiaries were included. No companies have been added or excluded from the scope of consolidation in the period under review.
Accounts receivable and receivables from production orders
The accounts receivable and production receivables as of June 30, 2024 are split as follows:
June 30, 2024 Dec. 31, 2023
million $€$
| Accounts receivable - short-term | 2.4 | 3.0 |
|---|---|---|
| Receivables from production contracts |
20.9 | 17.2 |
| Less allowances | -0.1 | -0.1 |
| 23.2 | 20.1 |
Intangible assets
Capitalized development expenses, goodwill, customer bases as well as concessions, intellectual property rights and other intangibles are included under intangible assets. As of June 30, 2024, the capitalized development expenses amounted to $€ 4.6$ million (December 31, 2023: $€ 4.4$ million). In the first six months of 2024 the investments in developments totaled $€ 0.7$ million (previous year: $€ 0.8$ million). Scheduled write-offs and amortization on capitalized development expenses amounted to $€ 0.5$ million (previous year: $€ 0.6$ million). In the quarter under review development expenses amounted to $€ 0.2$ million (previous year: $€ 0.5$ million), the scheduled amortization amounted to $€ 0.2$ million (previous year: $€ 0.3$ million).
Property, plant \& equipment
In the first half of the business year $2024 € 0.5$ million were invested in property, plant \& equipment (previous year: $€ 0.7$ million). During the same period scheduled depreciation amounted to $€ 0.8$ million (previous year: $€ 0.7$ million). The scheduled depreciation for the quarter under review amounted to $€ 0.4$ million (previous year: $€ 0.3$ million).
Breakdown of sales
The following matrix splits sales in the period under review according to the individual segments and selected categories.
| JANUARY 1 TO JUNE 30, 2024 | Solar in million $€$ | Life Science in million $€$ | Semiconductor in million $€$ | Total in million $€$ |
|---|---|---|---|---|
| Revenue by country of destination | ||||
| Germany | 2.8 | 0.8 | 0.3 | 3.9 |
| Rest of Europe | 3.9 | 1.8 | 1.1 | 6.8 |
| North and South America | 2.6 | 1.9 | 1.0 | 5.5 |
| Asia | 14.7 | 6.6 | 3.2 | 24.5 |
| Africa \& Australia | 0.0 | 0.0 | 0.0 | 0.0 |
| 24.0 | 11.1 | 5.6 | 40.7 | |
| Revenue by country of origin | ||||
| Germany | 24.0 | 8.5 | 5.1 | 37.6 |
| Rest of Europe | 0.0 | 0.2 | 0.1 | 0.3 |
| North and South America | 0.0 | 1.0 | 0.3 | 1.3 |
| Asia | 0.0 | 1.4 | 0.1 | 1.5 |
| Africa \& Australia | 0.0 | 0.0 | 0.0 | 0.0 |
| 24.0 | 11.1 | 5.6 | 40.7 | |
| Products and services | ||||
| Production facilities | 21.2 | 7.7 | 5.0 | 33.9 |
| Service and spare parts | 2.8 | 3.4 | 0.6 | 6.8 |
| 24.0 | 11.1 | 5.6 | 40.7 | |
| Revenue recognition date | ||||
| Periodic revenue recognition | 18.2 | 6.8 | 4.9 | 29.9 |
| Revenue recognition as of a specific date | 5.8 | 4.3 | 0.7 | 10.8 |
| 24.0 | 11.1 | 5.6 | 40.7 |
| JANUARY 1 TO JUNE 30, 2023 | Solar in million $€$ | Life Science in million $€$ | Semiconductor in million $€$ | Total in million $€$ |
|---|---|---|---|---|
| Revenue by country of destination | ||||
| Germany | 2.3 | 6.2 | 0.9 | 9.4 |
| Rest of Europe | 13.2 | 0.9 | 0.8 | 14.9 |
| North and South America | 0.3 | 1.4 | 0.2 | 1.9 |
| Asia | 9.4 | 3.6 | 2.4 | 15.4 |
| Africa \& Australia | 0.0 | 0.1 | 0.0 | 0.1 |
| 25.2 | 12.2 | 4.3 | 41.7 | |
| Revenue by country of origin | ||||
| Germany | 24.7 | 9.5 | 3.1 | 37.3 |
| Rest of Europe | 0.0 | 0.2 | 0.2 | 0.4 |
| North and South America | 0.0 | 1.0 | 0.2 | 1.2 |
| Asia | 0.5 | 1.5 | 0.8 | 2.8 |
| Africa \& Australia | 0.0 | 0.0 | 0.0 | 0.0 |
| 25.2 | 12.2 | 4.3 | 41.7 | |
| Products and services | ||||
| Production facilities | 23.9 | 8.6 | 3.7 | 36.2 |
| Service and spare parts | 1.3 | 3.6 | 0.6 | 5.5 |
| 25.2 | 12.2 | 4.3 | 41.7 | |
| Revenue recognition date | ||||
| Periodic revenue recognition | 22.4 | 7.2 | 3.6 | 33.2 |
| Revenue recognition as of a specific date | 2.8 | 5.0 | 0.7 | 8.5 |
| 25.2 | 12.2 | 4.3 | 41.7 |
Sales deductions and direct selling costs
The sales reductions include all cash discounts granted. The individual selling expenses are mainly composed of expenses for packaging, freight and commissions.
General administrative expenses
Administrative expenses include management expenses, HR expenses and finance and accounting expenses as well as the premises and vehicle expenses attributable to such areas.
Furthermore, they include the ongoing IT expenses, legal and consulting fees, expenses for investor relations activities, the ordinary Annual General Meeting as well as the annual financial statements.
Research and development expenses
In addition to the research and non-capitalizable development expenses, the research and development expenses in the first half of 2024 also include the scheduled amortization of capitalized development expenses in the amount of $€ 0.5$ million
(previous year: $€ 0.6$ million). During the second quarter of 2024, write-offs on capitalized development expenses amounted to $€ 0.2$ million (previous year: $€ 0.3$ million).
Financial instruments
The following table shows the carrying amounts and fair values of all financial instruments recognized in the consolidated financial statements by category.
| Carrying amount | Fair values | |||
|---|---|---|---|---|
| Measurement method | $\begin{gathered} \text { June 30, 2024 } \ \text { in million } € \end{gathered}$ | Dec. 31, 2023 in million $€$ | $\begin{gathered} \text { June 30, 2024 } \ \text { in million } € \end{gathered}$ | |
| Financial assets | ||||
| Cash and cash equivalents ** | AC | 5.1 | 11.5 | - |
| Financial assets subject to restrictions on disposal ** | AC | 2.0 | 3.2 | - |
| Derivatives | ||||
| Hedging derivatives ** | HD | - | - | - |
| Trade receivables ** | AC | 2.4 | 2.9 | - |
| Other receivables | AC | 6.9 | 5.2 | - |
| Financial liabilities | ||||
| Bonds * | AC | 11.8 | 12.0 | 8.4 |
| Liabilities from loans | AC | 34.0 | 29.3 | - |
| Derivatives | ||||
| Hedging derivatives ** | HD | - | - | - |
| Trade payables ** | AC | 12.9 | 8.9 | - |
| Other liabilities | AC | 5.2 | 8.7 | - |
| Liabilities in connection with the disposal of long-term held assets | AC | 0.0 | 0.0 | - |
| Total | AC | 80.3 | 81.7 | - |
| Total | HD | 0.0 | 0.0 | - |
[^0]
[^0]: * The valuation at attributable time value was accounted for as Level 1 attributable time value, based on the input factors of the applied valuation procedures.
** The valuations at attributable time value were accounted for as Level 2 attributable time values, based on the input factors of the applied valuation procedures.
4abreviations:
AC: Amortized costs (financial assets and liabilities measured at amortized cost)
HD: Hedging Derivatives
Cash and cash equivalents, financial assets subject to restrictions on disposal, and trade payables are generally due in the short term. The balance sheet values are approximately the attributable time values. The same holds true for short-term accounts receivables and other assets.
The attributable time values of long-term accounts receivable corresponds to the present values corresponding to the payments of the assets subject to the relevant interest rate parameters.
Forward exchange contracts are measured using the ECB reference rates for spot currency and the valid forward exchange rates of the respective commercial bank for forward currency.
The fair value of the exchange-listed bond equals the market price as of the balance sheet date plus the carrying amount of accrued interest liabilities as of the balance sheet date.
The attributable time value of the liabilities from the issuance of loans corresponds to the redemption amount of the loans at the balance sheet date.
The maximum credit risk is reflected in the carrying amounts of the financial assets and liabilities.
Earnings per share
The interest income/ expenses are composed as follows:
| June 30, 2024 in million $€$ |
June 30, 2023 in million $€$ |
|
|---|---|---|
| Financing expenses from issuance of bond |
-0.3 | -0.3 |
| Interest expenses from the discounting of pension provisions |
-0.2 | -0.2 |
| Financing expenses from loans | -0.6 | -0.1 |
| Other financing costs | -0.3 | -0.6 |
| -1.4 | -1.2 |
Earnings per share
For the calculation of the undiluted earnings per share the earnings attributable to the bearers of the common shares of the parent Company are divided by the weighted average number of shares in circulation during the period under review.
For the calculation of the diluted earnings per share the earnings attributable to the bearers of the common shares of the parent Company are divided by the weighted average number of common shares in circulation during the period under review in addition to the weighted average number of shares resulting from the conversion of all potential common shares with dilution effect into common shares. Dilution effects were neither recorded in the quarter under review nor in the same period one year ago. In the period from the balance sheet date until the drawing up of the consolidated financial statements there were no transactions of common shares or potential common shares.
Financing liabilities from bond issue
The security bond (ISIN DE000A2AA5H5) with a volume of $€ 12.0$ million was issued in July 2016. The original term of five years was extended by five additional years as per resolution on May 6, 2021. The nominal interest rate for the extended term to maturity amounts to $4.5 \%$ p.a.. The redemption amount per corporate bond with a nominal amount of EUR 100.00 shall be increased by $€ 5.00$ to $€ 105.00$. The effective interest rate for the additional five years amount to $5.4 \%$ p.a..
Cash, receivables, inventories, fixed assets and intangible assets of the SINGULUS TECHNOLOGIES AG serve primarily as collateral for the bond.
Financing liabilities
The Chinese state-owned CNBM Group, Beijing (CNBM), holds 16.75\% of the shares in SINGULUS TECHNOLOGIES through a consolidated subsidiary, Triumph Science \& Technology Group Ltd. To secure the continuation of the Company, with effect from February 3, 2023 the Company and Triumph signed an agreement regarding the provision of liquid funds in the amount of $€ 20.0$ million. In return for the financing, SINGULUS TECHNOLOGIES grants CNBM the option for exclusive rights of use for specific thin-film technology in the Solar division. The total volume was received by the Company in two tranches in the amount of $€ 9.6$ million in March 2023 and in the amount of $€ 10.4$ million in early April 2023. Both tranches have a maturity of at least 18 months, but the disbursed funds have to be repaid in full or in part only upon request of the lender. Furthermore, the Company also has the option to repay the funds in part or in total at any time. However, they will not be eligible to be drawn again then.
Since May 2022, the Company has at its disposal a working capital credit line in the amount of $€ 10.0$ million. The repayment of the loan is guaranteed by the Chinese main shareholder Triumph. Most recently, the term of the agreement was extended until May 2025. The annual interest rate is 2.0 percentage points above EURIBOR and is updated on a quarterly basis.
In addition, the Company has a loan in the amount of $€ 4.0$ million at its disposal according to the bond's terms and conditions. The loan matures on December 31, 2024. In May 2023, the Company drew the first tranche and in January 2024 the second tranche each amounting to $€ 2.0$ million. The interest rate amounts to $7.5 \%$ p.a.. According to the loan's terms and conditions, the load is senior secured.
Events after the Balance Sheet Date
On March 29, 2024, Triumph, as the largest individual shareholder and key customer of the Company, had declared in writing to SINGULUS TECHNOLOGIES that it would provide the Company with sufficient liquidity until the conclusion, repayment or successful settlement of certain currently existing financing components and contracts, but no later than the end of March 31, 2025, so that the Company can meet its financial obligations.
SINGULUS TECHNOLOGIES and Triumph successfully concluded an agreement on the restructuring of the financing in August 2024.
Furthermore, the Company reduced its forecast for the current business year for sales to a range from $€ 95.0$ to $€ 105.0$ million. This should be achieved with an EBIT in the amount of $€ 3.0$ million to $€ 6.5$ million.
$31.63 \%$ of the capital was present at the Annual General Meeting of the SINGULUS TECHNOLOGIES AG in Frankfurt am Main on July 25, 2025. The Annual General Meeting approved all items on the agenda, including the discharge of the Boards, with the required majorities. Dr. Jutta Menninger was elected as a new member of the Supervisory Board by the Annual General Meeting with 99.91\%.
Shareholdings of Board members
As of the balance sheet date, the members of the Executive and Supervisory Boards of the SINGULUS TECHNOLOGIES AG held the following number of shares, convertible bonds and stock options: The Chairman of the Supervisory Board, Dr.-Ing. Leichnitz, held 245 shares of the Company in total as of June 30, 2024.
Furthermore, at the end of the quarter under review members of the Executive Board had themselves purchased the following number of shares of the SINGULUS TECHNOLOGIES AG:
June 30, 2024
shares
Dr.-Ing. Stefan Rinck, CEO
Markus Ehret, CFO
122
43
165
AFFIRMATION OF THE LEGAL REPRESENTATIVES
"We assert to our best knowledge and belief that pursuant to the applicable accounting principles for the interim financial reporting the consolidated financial statements reflect the true situation of the asset, financial and earnings situation of the Group. The consolidated interim status report depicts the course of business including the financial results and the situation of the Group in a way reflecting the true situation and describing the material opportunities and risks of the foreseeable developments of the Group during the remainder of the business year."
Kahl am Main, August 2024
The Executive Board
| 2024 | 2023 | ||
|---|---|---|---|
| Revenue (gross) | million $€$ | 20.1 | 25.4 |
| Order intake | million $€$ | 19.1 | 10.0 |
| EBIT | million $€$ | 0.5 | 0.2 |
| EBITDA | million $€$ | 1.2 | 1.0 |
| Earnings before taxes | million $€$ | $-0.2$ | $-0.4$ |
| Profit/loss for the period | million $€$ | $-0.2$ | $-0.3$ |
| Research \& development expenditures | million $€$ | 1.9 | 3.6 |
FINANCIAL KEY FIGURES FOR THE FIST HALF YEAR (preliminary and unaudited)
| 2024 | 2023 | ||
|---|---|---|---|
| Revenue (gross) | million $€$ | 40.7 | 41.7 |
| Order intake | million $€$ | 52.3 | 24.1 |
| Order backlog (06/30) | million $€$ | 70.4 | 67.2 |
| EBIT | million $€$ | 1.2 | $-0.7$ |
| EBITDA | million $€$ | 2.5 | 0.7 |
| Earnings before taxes | million $€$ | $-0.3$ | $-1.9$ |
| Profit/loss for the period | million $€$ | $-0.2$ | $-1.8$ |
| Operating cash flow | million $€$ | $-7.6$ | $-20.6$ |
| Shareholders' equity | million $€$ | $-44.8$ | $-32.9$ |
| Balance sheet total | million $€$ | 66.2 | 83.2 |
| Research \& development expenditures | million $€$ | 4.7 | 6.0 |
| Employees (06/30) | 293 | 298 | |
| Weighted number of shares, basic | 8,896,527 | 8,896,527 | |
| Earnings per share, basic | € | $-0.02$ | $-0.20$ |
August 2024
Half Year Report 2024
November 2024
Interim Report Q3-2024
November 2024
Deutsches Eigenkapitalforum
$11 / 25-27$
FUTURE-ORIENTED STATEMENTS AND FORECASTS
This report contains future-oriented statements based on the current expectations, assessments and forecasts of the Executive Board as well as on the currently available information to them. Known as well as unknown risks, uncertainties and impacts could cause the actual results, the financial situationor the development to differ from the statements made in this report. We assume no obligation to update the future-oriented statements made in this report.
SINGULUS 7
SINGULUS TECHNOLOGIES AG Hanauer Landstrasse 103 D-63796 Kahl am Main Tel. +49 6188 440-0 Fax +49 6188 440-1110
Internet: www.singulus.de
Investor Relations
Maren Schuster
Tel. +49 6188 440-1612
Fax +49 6188 440-1110
[email protected]