Economic Undertakings

Manz AG ends negotiations with its Chinese contract partner and carries out a non-monetary write-down in the solar business

DGAP-News: Manz AG / Keyword(s): Forecast/Agreement

Manz AG ends negotiations with its Chinese contract partner and carries out a non-monetary write-down in the solar business

29.07.2022 / 12:46
The issuer is solely responsible for the content of this announcement.

Manz AG ends negotiations with its Chinese contract partner and carries out a non-monetary write-down in the solar business

Reutlingen, July 29, 2022 – Manz AG, a globally active high-tech engineering company with a comprehensive technology portfolio, is ending negotiations with its Chinese customer Chongqing Shenhua Thin Film Solar Technology Co., Ltd. regarding the conclusion of the contract for the large-scale CIGS solar projectfabulous and, in this context, proceeds to a non-cash depreciation of an amount of 23.2 million euros on a contractual asset. This was decided by the board of directors after no agreement could be reached today on the completion of the project also during the final negotiations with the contractual partner.

Since 2017, Manz AG had been working on the major project for the Chinese partner with an expected total order volume of around 218 million euros, which was discontinued in December 2020 at the request of the customer. At the end of 2020, Manz AG had received payments of around 175 million euros, but had already provided services with a total value of around 198 million euros to date. As already described in detail in connection with the 2021 annual report as well as the 2022 annual general meeting, the board of directors had previously assumed that the client would honor the associated contractual outstanding payments. Contrary to expectations, however, it has not yet been possible to reach an amicable solution between the contracting parties. Therefore, Manz AG now pursues the goal of asserting its rights in court.

Due to the impact on earnings development resulting from today’s decision and in the context of an unexpectedly large increase in raw material and energy costs, a changed project mix, ongoing challenges in global supply chains and heightened economic uncertainties among Manz AG customers, the Management Board is adjusting its guidance for fiscal year 2022. The adjusted guidance will be announced on August 04, 2022, along with key financial figures of the first half of 2022.

Martin Drasch, CEO of Manz AG: “We deeply regret that we were unable to reach an amicable solution with our Chinese contractual partner. We will now focus our efforts consistently on implementing our growth strategy in the automotive and fuel sectors. electromobility, battery manufacturing, electronics, energy and medical technology.Therefore, we are not undertaking any further technological development in CIGS thin-film solar technology and have discontinued market development. In the e-mobility market in particular, we have established a strong position as a manufacturer of high-tech equipment to benefit from the immense market potential.” Manz has recently been able to capitalize on this momentum and convince many well-known international customers with its years of experience in developing innovative concepts and production solutions.

Company profile:

Manz AG – designing the production of tomorrow

Manz AG is a global high-tech engineering company.

With a focus on the automotive industry and electromobility, battery manufacturing, electronics, energy as well as medical technology, Manz develops and builds innovative and efficient production solutions: individual, individual machines for production in the laboratory or pilot and small series production, to standardized modules and systems, to turnkey lines for mass production.

Technologically, Manz’s production equipment is based on many years of experience in automation, laser processing, inspection systems and wet chemistry.

With currently around 1,400 employees, the Manz Group develops and produces in Germany, Slovakia, Hungary, Italy, China and Taiwan. Sales and service subsidiaries also exist in the United States and India.

Manz AG was founded in 1987 and has been listed on the Frankfurt Stock Exchange since 2006. In the 2021 financial year, the group achieved sales of around 228 million euros.

Contact

Manz S.A.

Axel Bartman
Such. : +49 (0)7121 – 9000-395
Fax: +49 (0)7121 – 9000-99
Email: [email protected]

cometis S.A.

Claude Krause
Such. : +49 (0)611 – 205855-28
Fax: +49 (0)611 – 205855-66
Email: [email protected]

29.07.2022 Broadcast of a Corporate News, transmitted by the DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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