Biomass Energy Project S.A

Biomass Energy Project S.A

Warsaw Stock Market Exchange No. PLBMSEP00011

Biomass Energy Project S.A is the founding enterprise for the Asia Medical & Technology Hub, we are a listed company of the Warsaw Stock Exchange in Poland

In 2019, revenues of the Company were PLN 2212 thousand with net profit of PLN 598 thousand. Regarding the revenues, these values are higher than in 2018 which were PLN 2045 thousand, whereas for the net profit they are lower than in the analogical period of the previous year which was PLN 629 thousand in 2018.

In the 4^th quarter of 2019, 18 December, the Company informed about the registration of the subsidiary BEP BATTERY PACK S.A. by the National Court Register. In this subsidiary the Company holds a controlling block of stocks of 52% In the 4^th quarter of 2019 BEP BATTERY PACK S.A. obtained the first revenues on operations, therefore, starting from this reports, we will present our financial statements in next reports in the form of a consolidated report as part of the BEP Capital Group, and a separate statement of the Company.

The revenues achieved in 2019 were mainly from performed designed and engineering works at electric vehicles and works on batteries, which means that profits from our works on electromobility and energy storage are started to be realised. It is of significant importance to us that we have achieved greater revenues of the Company while maintaining a satisfactory profitability level. It allowed us, despite increased initial costs of preparing prototype products and conducted research and development works, to maintain a positive net financial result which was lower than that in 2018 by only approx. 5.2%, whereas for the operating profit, PLN 632 thousand achieved by us in 2019 is higher than the operating profit for 2018 which was PLN 585 thousand which we are very pleased about and we can look to next periods with optimism.

As part of the Capital Group with the subsidiary BEP BATTERY PACK S.A., within the consolidated profit and loss account, the revenues were PLN 2.103 million and the net profit was PLN 554 thousand.

In 2019, Biomass Energy Project S.A. implemented its strategy and development programme to switch the profile of operations to innovative, state-of-the-art technologies related to the current trends in the global economy. A change in the nature and method of realisation of achieved revenues has taken place as well. The increasing part of the same comes from our innovative products. The profile of our Company has changed from agricultural activities and use of biomass to scientific research and works, and development of new innovative technologies associated with medicine, electromobility and renewable energy. Therefore, we will limit some growing, e.g. silvergrass which delivers non-treated biomass material, while continuing highly efficient Paulownia growing with significant development perspectives ahead.

We hope this change of the profile of operations will bring effects and results in the further part of 2020 in a substantial increase of revenues and profits of the Company despite the hard situation caused by the coronavirus pandemics and the temporary freezing of the economic in the first part of the year. The number of our new products relates directly to the combat with the epidemics and the increase in the rate of new infections observed in the last period will certainly increase the interest in our quotation. The interest in Company stock among stock exchange investors will also increase substantially. As a result, the high liquidity of the stock will be maintained and the rate will grow considerably. We hope the activities taken by the Company in the field of new technologies will translate into stable, growing revenues in the next periods and a high level of profits resulting in further growth of the Company value, and – as a consequence – an extension of the upward trend of the stock we have been observing lately, so we wish to ourselves and to our stockholders.