Risks and Opportunities Report

The SINGULUS TECHNOLOGIES Group is subject to a multitude of risks, which are tied to entrepreneurial actions within the operating segments and which result from internal and external factors. A risk means the possibility that events, trends or actions cause the Group or one of its segments to fail to reach its goals. At the same time it is important for the SINGULUS TECHNOLOGIES Group to identify opportunities in order to take advantage of these in the course of entrepreneurial actions and therefore to safeguard and expand the competitiveness of the company. To identify and manage the entrepreneurial risks and opportunities at an early stage is the direct responsibility of the operating segments and divisions. For this, efficient management and monitoring systems are implemented to identify, assess and consistently handle risks and opportunities at an early stage. An offsetting of risks and opportunities is not implemented.

The following information applies to the parent company SINGULUS TECHNOLOGIES AG as well as to the SINGULUS TECHNOLOGIES Group. In the course of our opportunities and risk management the parent company occupied a leading role.

Goals and Principles of the Risk Management

The risk management supports achieving the company’s goals by creating transparency about the risk situation of the company as the basis for risk-aware decisions, the identification of potential threats to the assets, financial and earnings situation of the company as well as prioritizing risks and the respective requirements to act. In addition, risk management safeguards the explicit management of risks by respective measures and their monitoring. Furthermore, the risks should be limited to an acceptable level as well as the costs of risks optimized.

The risk management at SINGULUS TECHNOLOGIES is characterized by the following principles:

  • The risk management is primarily implemented by the operating segments in the course of the management duties;
  • The risk management must not be limited to financial risks, but must also include all risks associated with the business activities;
  • The risk management has to be an integral part of the business processes;
  • The precondition for an effective risk management is the clear and unambiguous assignment of tasks and responsibilities and a systematic risk management process;
  • Support and active participation on part of the management team;
  • Functionality and reliability of the risk management are to be supervised continuously and adjusted, if necessary;
  • The risk management system has to be documented in a suitable manner, principles and guidelines of the risk management have to be in written form and communicated to the relevant people;
  • Opportunities are not part of risk management.

In particular, risk management should make the following contributions:

  • to improve the risk awareness and risk transparency;
  • to identify, suitably manage and monitor all essential risks;
  • to show accumulation of risks;
  • to provide reliable management information about the risk situation of the company.

    Organization of the Risk Management

    For the identification of risks the risk development is reviewed annually in the course of the company’s planning and new risks for the business development from the company’s perspective within all of SINGULUS TECHNOLOGIES’ producing sites as well as sales subsidiaries are discussed. Due to a weak independence of the sales subsidiaries their risks are directly included within the parent company. The respective department heads are responsible for the subsequent formulation and implementation of measures to handle risks. The departments Controlling and Finances support the department heads throughout the individual steps of the risk management process. The risk manager has the method and guideline competence within the company and coordinates the reporting about the risks within the SINGULUS TECHNOLOGIES Group.

    The Executive Board has the overall responsibility for the implementation of an appropriate and functioning risk management, to safeguard the timely identification and mastering of trends threatening the continuation of the company.

    Risk management organization of the SINGULUS TECHNOLOGIES AG:

    The Risk Management Process in the SINGULUS TECHNOLOGIES Group

    Overall, the risk management system is a continuous process according to the business risk management process:

    Level 1: Identification of Goals, Extent and Infrastructure

    The basis of the strategic risk management process is formed by the alignment of risk policies (including targets and thresholds), the risk management processes and the definition of the required relevant systems and instruments. The original definitions are subsequently amended or modified in the course of a long-term control cycle.

    Level 2: Analysis of Risks

    In a second step risks are initially identified and documented, afterwards analyzed from different perspectives and finally evaluated, if possible. To safeguard a complete risk inventory, a theoretical risk portfolio is applied. The analysis and updating were performed in the course of the annual planning. On a quarterly basis, a risk reporting is established to document the essential risks.

    The evaluation of risks is performed on an ordinal scale. The gross damage is evaluated. This assessment is renewed on a quarterly basis.

    The gross damage is defined as the negative earnings impact on the Group’s forecast EBIT. The probability of occurrence is the subjective assessment of the probability of the event occurring in the business year. Specifically, a low, medium or high probability is classified. The evaluation is performed on a “gross” basis, i.e. existing controls and measures are not taken into account. The relevant figures for the classification of the gross risk are defined in the following table. Here, the assumptions with regards to the specific maximum damage (based on the Group’s shareholders’ equity) are derived from long-term historic analysis of the financial results. In addition, the short- and medium-term liquidity risk is continuously monitored.

    Maximum loss
    Relevance Characteristics from to
    1 Insignificant risks, not materially impacting EBIT. 0 € € 0.5 million
    2 Medium risks, with a significant impact on EBIT. € 0.5 million € 2.5 million
    3 Significant risks, materially impacting the EBIT and significantly reducing the company value. € 2.5 million € 10 million
    4 Major risks resulting in a negative EBIT and materially reducing the company value. € 10 million € 20 million
    5 Continuation-threatening risks, which threaten the continuation of the company. > € 20 million

    Subsequently, the probability of occurrence (classification high, medium, low) is estimated for the individual risks.

    Level 3: Formulating Risk Handling Strategies

    On the basis of risk handling, strategies, specific measures can be derived. The definition of these strategies is made with respect to the overall strategy and the risk preference of the company. Basically, management has the following alternative for the handling of risks at its disposal:


    • Eliminate risks
      The elimination of risks results in a complete elimination of the risk, e.g. by leaving a risky or unprofitable business.

    • Reduce risks
      The goal of the reduction of risks is to lower the probability of occurrence and/or the impact on the EBIT or the company’s target to an acceptable level, e.g. by improving the early detection of risks and thus the implementation of counter-measures.

    • Transfer (insure) risks
      In case of an insurance / cover the potential damage is transferred to a third party, e.g. with a respective insurance cover.

    • Bear (accept) risks
      With the acceptance of risks the direct form of risk financing is carried out by SINGULUS TECHNOLOGIES, e.g. through financial cover via the addition of provisions. The development of the risks is monitored by the involved employees without introducing specific measures for the handling of risks.

    Level 4: Design and Implementation of appropriate Structures and Measures

    On the basis of the above-formulated risk handling strategy, subsequently the required structures and measures are derived and implemented.

    Level 5: Monitoring of Efficiency

    The implemented measures are regularly monitored and reviewed with respect to their efficiency. In addition, the legal documentation requirements are met.

    Level 6: Adjusting the Measures and continuous Improvement Process

    The dynamic nature of the environment demands the risk management to be understood as a continuous process. For this reason continuous adjustments of the risk management process to external and internal developments are essential. To enable this, intensive knowledge management is still necessary. The starting point for the risk management process of SINGULUS TECHNOLOGIES is the corporate strategy, on which the definition and communication of the business goals is based.

    The review of the risk management systems is performed by impartials, i.e. people who are not directly involved in the management of risks. The following principle review requirements apply:


    • Supervisory Board
      The Supervisory Board is responsible for the review of the efficiency of the risk management. For this, the Executive Board at least annually informs the Supervisory Board about the current state of the risk management.

    • Audit
      In the course of the audit of the annual financial statements pursuant to Art. 317 Para. 4 HGB the audit includes the assessment, whether the Executive Board has performed the measures pursuant to Art. 91 Para. 2 AktG in an appropriate manner and whether the accounting monitoring system is appropriate to identify developments threatening the continuation of the company at an early stage.

    Risk Report

    As an internationally operating company SINGULUS TECHNOLOGIES continuously monitors the current developments in connection with the outbreak of the COVID-19 pandemic and its economic consequences for our company. The management is closely monitoring the situation in order to be able to implement required countermeasures.

    In summary, for the year under review the following relevance scores for the individually identified, material risk group as well as their probability of occurrence each compared with the previous year’s assessment resulted.


    Relevance*Probability of occurrenceRelevance*Probability of occurrence
    Sales market risk in Solar segment•••••high•••••medium
    Sales market risk in Life Science segment••••high--
    Project risks•••••medium•••••medium
    Technological risks•••medium•••medium
    Financial risks•••••high•••••medium
    Procurement market risks•••medium•••medium

    * Measured using relevance indicators from 1 through 5

    The following paragraphs explain the risk areas and individual risks, which are able to materially affect the assets, the financial and the earnings position of the SINGULUS TECHNOLOGIES AG and of the Group from today’s perspective, on the basis of the overall Group and which could result in a shortfall of the targets.

    In addition, risks that are not known today or which are not assessed as being material, could impact the asset, financial and earnings situation of the company.

    Sales Market Risks

    Risk description:
    The company is generally subject to global economic cycles and geopolitical risks, which could impact the course of business. In particular, SINGULUS TECHNOLOGIES depends on the willingness of its international customers to invest into new production machines. Drops in demand or misjudgments in terms of the development of markets and products could have negative impacts on the company's results.

    From today's perspective the global economy is to a large extent dependent on the future development of the COVID-19 pandemic. As a result, the global economy, in particular in important sales markets for the company, could further weaken. However, the impacts cannot be quantified from today's point of view.

    Solar Segment
    The market development for photovoltaic installations in the past couple of years relied to a large extent on the regulatory framework and global subsidies for investments in photovoltaic equipment. Even though the dependency of the competitiveness of photovoltaic installations from government subsidies is gradually decreasing due to the reduction in system costs for photovoltaic equipment, the market for these installations depends on the implementation of national energy policies and on the continuation of public support programs in the future as well. This holds mainly true for the main markets China and the US. In particular due to the enormous importance of China as the driver of growth for the solar industry in the past couple of years, the further development of the regulatory framework conditions and the public subsidy programs in this country pose a substantial risk with respect to the main business activities of the company. In case the Chinese government repositions its energy policy or adjusts it and with that shift in the solar section in the course of its subsidy programs to other technologies than CIGS, HJT or towards other new production processes or even no longer implement the expansion of the production capacities to the currently announced extent, this would have material negative effects on the sales of the company.

    Furthermore, investments in the photovoltaics sector could be refrained from in general or partially or to a significantly smaller extent than expected by SINGULUS TECHNOLOGIES, since the solar technology could become less accepted in competition with other methods of electricity generation from renewable energy source in the future or other technologies could develop more favorably than photovoltaics from a technical, economic, regulatory or other reasons.

    In the Solar segment the company is currently engaged in business with a small number of large customers. This holds particularly true with respect to the current large orders as well as the future business relationships with the Chinese state-owned group CNBM. The liquidity and earnings situation is accordingly volatile and also dependent on large-volume projects in the short-term. Due to the current customer and project concentration, singular delays, considerable reduction or even a break-up of the respective business activities could have a material impact on the asset, financing and earnings situation. In such a case it will be improbable that the company will be successful in compensating for the lack of business volume by new customers in the short- or medium-term.

    Moreover, the competitive intensity could further increase due to mergers or cooperation of individual competitors or the market entry of new competitors. Increasing competition could result in reduced prices for production machines of the company or even to a material loss of market share.


    Due to the decline in the order situation since the end of the previous business year, the market risk in the Solar segment is rated with a relevance score of 5 (previous year: 5). Due to the sustained delays in contract conclusions in the Solar segment during the course of the business year the probability of occurrence is assessed to be high (previous year: medium). Even after the signing of the delivery contracts with CNBM for the production site in Xuzhou and the receipt of the first prepayment, the company currently assesses the probability of occurrence of the sales market risk as being high. Accordingly, the risk is still rated to be existential.

    The 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. If the expansion of renewable energies will be subject to a reduced priority on part of the Chinese government and the expansion of solar parks in the country will slow down significantly in the coming years, this would have a material impact on the willingness of Chinese customers to invest and thus on the most important sales market for the company. In particular, there is a high level of dependence on the customer CNBM as well as its additional demand for CIGS production equipment. As of today, the majority of the order backlog is already targeted for the Chinese market. If the assumed order intake in this segment falls short of expectations in the following business years, this would threaten the continuation of the company.

    The company is continuously monitoring the market trend in China. In particular, this includes talks with our customers as well as with institutes in China. In addition, a reduction in the dependency on the Chinese solar market is targeted by the diversification in other markets and applications.

    Life Science Segment
    Besides the core segment Solar, the new segment Life Science is very important for the further course of business. After the sale of first machines within the two work areas Medical Technology and Decorative Coatings, for the current year the company expects to realize a large order and thus a significant expansion of the business activities in this sector.

    Due to the increasing importance of this segment for the financial results of the company, the segment receives a relevance score of 4 as well as a high probability of occurrence. If the anticipated order intake in this segment will fall significantly short of expectations in the current business year and the company will not be successful in winning equivalent alternative projects, this would threaten the continuation of the company.

    External data such as market research results but also close contacts with our customers as well as monthly reviews of actual and forecast results help to improve the evaluation of future trends at an early stage.

    Semiconductor Segment
    Due to the low volumes in terms of the realizable sales the Semiconductor segment is still viewed as not being material.

    External data such as market research results but also close contacts with our customers as well as monthly reviews of actual and forecast results help to improve the evaluation of future trends at an early stage.

    Project Risks

    Risk description:
    According to our definition project risks include orders, which concern non-standardized machines with a sales price usually exceeding € 3.0 million. Specifically, the resulting risks are the exceeding of forecast costs as well as of the project schedule, the failure of acceptance criteria as well as order cancellations and the resulting non-acceptance of machines and the resulting contractual 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 as well as failing to meet the acceptance criteria is viewed as being material. In particular, the work as planned for the delivery of machines for the production of CIGS solar modules for the large customer CNBM is of great importance for the continuation of the company. After significant delays the respective machines for the first expansion stage of the factory in Bengbu, China, have mainly passed the process towards final acceptance in the previous business year. The final acceptance for a large part of the machines was already received at the balance sheet date. For the production site in Meishan the company expects the final acceptance of the machines in close cooperation with the customer by the end of the business year 2020. However, we point out that the realization of project risks within these activities would have material negative impacts on the asset, financial and earnings situation of the company. 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 up to threatening the existence of the company.

    Negative implications on the course of the projects could also result in connection with the COVID-19 pandemic. If measures to contain the virus are maintained over a prolonged period of time or expanded, this could lead to substantial delays in the completion of the projects.

    In summary, we assess the project risks unchanged with the relevance score of 5 (previous year: 5). The probability of occurrence is assessed as medium, unchanged to the previous year.

    To manage the risks, already in the proposal stage project calculations, project schedules as well as project-specific risk assessments and liquidity forecasts are conducted. With a continuing monitoring of changes in the parameters alongside to the project’s progress, potential project risks should be identified at an early stage and necessary measures initiated. To reduce the risk of cancellations, prepayments as well as partial payments according to project progress are routinely agreed.

    Financial Risks

    Risk description:
    The SINGULUS TECHNOLOGIES Group is exposed to financial risks in particular with respect to liquidity risks. Here, this particularly includes the failure to receive partial payments in connection with the completion of large projects as well as the refinancing of the bond in July 2021. Furthermore, there are credit risks relating to accounts receivable by customers. In all segments additional financing agreements could become necessary subject to project-specific requirements. In particular, prepayments made by our customers in the project operations are often secured with guarantee pledges. For this, the company has to deposit a large proportion of liquid funds with the guarantors as security. This guarantee pledge is not at the company's disposal for the financing of working capital and could result in liquidity squeezes subject to the course of the projects.

    The payment behavior of customers in general as well as of our largest customer CNBM is of essential importance for the future development of the liquidity situation and the further improvement of the creditworthiness of the company.

    The future development of the COVID-19 pandemic could have negative impacts on the course of business in particular with respect to the demand situation as well as the course of the projects of essential customer orders. In this connection there could be substantial delays or even the failure to receive relevant partial payments.

    A sufficient level of liquidity for the company in the business years 2020 and 2021 can generally only be maintained if the plans can be realized in the next two years. The essential prerequisites for the planning are that the agreed partial payments due to the already contracted large orders are actually made or not made with a material delay and that the orders taken into account for the liquidity budget are completed as planned. These events and conditions indicate the existence of material uncertainty, which can cast considerable doubt on the company's ability to continue its business activities and which pose an existence-threatening risk.

    Currently, we still rate the liquidity risk unchanged with a relevance score of 5 (previous year: 5), the credit risk with a relevance score of 3 (previous year: 3). Despite the receipt of additional partial payments of the customer CNBM during the period under review and during drawing up the accounts, we rate the probability of occurrance as being high (previous year: medium). In particular, the contractually agreed receipt of additional partial payments by the customer CNBM as well as by other large projects is required. Material delays in payments or credit losses within these projects could not be compensated for.

    Furthermore, in terms of the financing commitments of the banks and insurers for required loan facilities in the current business year 2020 the required cash deposited have to be reduced. In particular, the financing of large projects could require a substantially higher flexibility of the unrestricted liquid funds.

    To safeguard the financial solvency as well as the financial flexibility of the SINGULUS TECHNOLOGIES Group at all times, a liquidity reserve in the form of cash is held. To detect liquidity risks at an early stage liquidity projections are performed on a regular basis and compared with the actual developments. The company is currently negotiating the granting of guarantee pledges with substantially reduced security deposits. In addition, in March 2020 the company has extended the loan with a volume of € 4.0 million until March 1, 2021 to further secure the liquidity situation. Furthermore, the company is currently in talks about the refinancing of the corporate bond with a nominal value of € 12.0 million. The bond is due on July 22, 2021. The company expects a successful implementation of the refinancing in the course of a favorable trend in the course of business. In addition, the company received prepayments in the amount of € 12.4 million at the beginning of the business year 2020 for the large CIGS project of the customer CNBM at the production site in Xuzhou. Further partial payments in the amount of € 5.0 million each are expected in the months April 2020 and May 2020. Moreover, the company is currently negotiating a credit line in the amount of € 10.0 million with a term to maturity of twelve months.

    To analyze default risks the portfolios of accounts receivable of the individual companies in the SINGULUS TECHNOLOGIES Group are reviewed in short time intervals. As the main instrument to hedge defaults of international customers we employ export credit insurance. The creditworthiness and payment behavior of customers are constantly monitored and relevant credit limits are determined. In addition, on a case by case basis risks are limited through credit insurances and bank guarantees, if possible.

    Technology Risk

    Risk description:
    The SINGULUS TECHNOLOGIES Group is operating in competitive markets. If the further or new development of products leads to erroneous trends, this could result in substantial costs.

    We are currently assessing the risk of faulty or delayed developments with an unchanged relevance score of 3 compared with the prior year and an unchanged medium probability of occurrence.

    A key aspect of the review of the technology risks is the analysis of market requirements. We reduce the risk of faulty or delayed developments through the cooperation with partners, research institutes and a continuous evaluation process, which continuously reviews the efficiency, opportunities and general conditions of the development projects. An essential part of this is the monitoring of the planning of the different development projects. For all capitalized development expenses not deemed recoverable the required write-offs are incurred. The analysis of success probabilities as well as the identification and seizing of these opportunities, which safeguards the competitiveness of the company and increases it, is therefore an essential aspect of the strategic planning.

    Procurement Market Risks

    Risk description:
    The availability, unexpected price increases and inadequate quality of procured components pose a risk for SINGULUS TECHNOLOGIES. An additional risk results from high inventory levels.

    We rate the inventory risk with respect to the level of inventories currently unchanged to the previous year with a relevance score of 3 (previous year: 3) und still assess the probability of occurrence as being low (previous year: low). From today’s point of view, we overall expect this to sufficiently cover the inventory risks through the recognition of balance sheet write-offs. The risk with respect to availability, quality and price increase of procurement parts is assessed with a relevance score of 3 (previous year: 3) at the end of the business year, the probability of occurrence is assessed to be medium (previous year: medium). In the short- and medium term we do not anticipate significant price increases from current contract negotiations and from the analysis of market expectations. The average backlog rate and the number of quality complaints over the course of the year were mainly within the target range.

    The deliverability as well as the fulfilling of our quality requirements for supplied parts is constantly monitored. We are currently reviewing the impacts of the COVID-19 pandemic on the supply chains. As of today, the company does not see any material adverse consequences for the business operations. The management is closely monitoring the situation as well as the future development in order to be able to implement potentially required countermeasures. A further part of the risk management is performed through inventory management. This area includes regular frequency and reach analyses of goods and procurement parts. To avoid unexpected price increases longterm contracts are partially concluded with suppliers.

    At the end of the reporting year 2018 the company had validated the impacts of a disorderly Brexit. Even in the case of occurrence, the company does not anticipate any material impacts on the procurement process due to the low procurement volumes and the existence of alternative suppliers. This assessment remained unchanged in the business year 2019.

    Compliance Risks

    Risk description:
    As an internationally operating company the SINGULUS TECHNOLOGIES Group is exposed to a multitude of legal, tax and regulatory risks in addition to the operating and financial risks. In particular they include risks from the fields product liability, patent rights and corporate laws. The outcome of legal disputes as well as legal proceedings could inflict substantial harm to the reputation and the business activities of the company or could at least incur high expenses.

    In addition, the disregard of laws, regulatory requirements and referenced guidelines could have serious negative impacts, such as for example reputation damage or punitive payments, for the company. This includes for example risks in connection with corruption as well as violations of export regulations.

    Compliance violations could result in legal proceedings. The outcome of legal proceedings is uncertain and can result in material economic consequences. These could possibly not be covered or not to the full extent be covered by insurances and will thus have an impact on our business operations as well as the corresponding financial results.

    There are currently no material ongoing legal proceedings against the SINGULUS TECHNOLOGIES AG and no significant compliance violations are known. The impact of compliance violations is rated with a relevance score of 3 (previous year: 3), the probability of occurrence is still assessed as being low.

    Legal risks are identified using a systematic approach and attended to with the help of external lawyers.

    The SINGULUS TECHNOLOGIES Group has established a group-wide Code of Conduct to prevent possible violations of laws. This code is intended to provide employees with specific rules of conduct in various situations. An additional measure to prevent compliance violations are individual employee trainings with respect to specific issues of various legal regulations.

    Opportunities Report

    SINGULUS TECHNOLOGIES addresses the global market for machines and systems for the manufacturing of various formats of solar cells. In the segment CIGS the efforts are mainly focused on the further expansion plans of the Chinese company CNBM. CNBM as the largest customer plans an output volume of 6 GW at four sites in China. This means a set-up of approximately 20 factories with an output volume of 300 MW each. While the first factory in the city of Bengbu is already producing, the factories in the cities of Meishan and Xuzhou are being established in 2020. The fourth site is intended to be in the city of Weihai according to information provided. Following the signing of a new contract at the beginning of January 2020 it is expected to expand sales and generate positive results in this segment with the machines for the CIGS thin-film solar technology.

    In the area of crystalline high-performance solar cells SINGULUS TECHNOLOGIES intends to offer a one-stop solution for the key production steps, i.e. in addition to the wet-chemical treatment also the various steps of the vacuum coating technology. In the market for HJT solar cells new projects are announced internationally, for which SINGULUS TECHNOLOGIES is in talks with the corresponding customers. For example, the expansion of existing production capacities for HJT solar cells is currently discussed with customers at different locations such as Italy and Eastern Europe.

    This provides SINGULUS TECHNOLOGIES opportunities for new large projects in the two segments for the current business year: the crystalline HJT and the thin-film solar technology.

    In the Life Science segment we see opportunities to generate sales in the future with vacuum coating machines for the processing of surfaces in the consumer goods sector as well as in the medical technology industry. The developments and market opportunities in the work area Decorative Coating are mainly characterized by the factors environmental friendliness and sustainability as well as cost savings. Following the delivery of the first machines predominantly in the cosmetics sector in the past two business years, the company sees good opportunities to sell additional machines, for example to the automotive supplier industry.

    The wet-chemical cleaning machines for various applications in the medical technology industry offer the possibility to generate additional sales and earnings contributions. Beside the successful market entry in the market for contact lenses, the company sees opportunities to develop additional application areas.

    In the Semiconductor segment there are opportunities to sell vacuum coating machines in this area amidst increasing demand on the basis of numerous MRAM development projects. In addition, for the coming years we expect further opportunities for new application areas for extremely precise layer systems, such as for example for sensory technology. For wet-chemical processing machines we see the possibility to market production machines for electronic components and semiconductor applications.

    Summary of Risks and Opportunities

    The project and the sales market risk for the Solar segment as well as the liquidity risk are still the material risks within the Group from today’s point of view.

    The Solar division is expected to provide the largest proportion of sales and earnings contributions in the current business year. Also against the background of establishing new business areas, the development of the solar market remains a critical criterion for the future continuation of the company.

    In addition, the company anticipates a significant increase in the business activities in the Life Science segment. If the forecast sales will not materialize in the coming years, this would have material impacts on the asset, financial and earnings situation of SINGULUS TECHNOLOGIES.

    If the risk of the order completion of current and future large projects materializes, this could have material negative impacts on the business operations of the company.

    A sufficient level of liquidity of the company in the business years 2020 and 2021 can only be maintained, if the plans in the next two years are realized. The essential prerequisites for the plans are that the partial payments of the customers, which are payable due to the already contracted large orders, are actually made without material delays. Moreover, winning an additional large order or a combination of equivalent alternative projects in the current business year is required. Furthermore, a successful and timely refinancing of the corporate bond in the amount of € 12.0 million due in July 2021 is a central component of securing the liquidity situation within the company.

    These events and conditions indicate the existence of substantial uncertainty, which can cast significant doubt on the company’s ability to continue its business operations and which pose an existence-threatening risk. 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.


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