Original-Research: CR Energy AG (von NuWays AG): Under Review

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Original-Research: CR Energy AG - from NuWays AG

03.06.2025 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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Classification of NuWays AG to CR Energy AG

     Company Name:                CR Energy AG
     ISIN:                        DE000A2GS625

     Reason for the research:     Update
     Recommendation:              Under Review
     from:                        03.06.2025
     Target price:                n.a.
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Philipp Sennewald

CRE set to file for insolvency; Rating suspended

In an ad hoc announcement released Friday afternoon, CR Energy (CRE)
informed shareholders that the company is expected to file for insolvency in
the coming days.

According to the company, the anticipated filing is primarily due to current
market developments and the lenders' unwillingness to further extend working
capital loans. Ongoing projects of the company's subsidiaries are reportedly
not affected. In the coming days, management intends to continue discussions
with investors regarding the provision of equity or debt capital.

From our perspective, this development comes somewhat unexpectedly, as the
company had not been reliant on external financing in recent years,
reflected in a strong equity ratio of 97.6% as of H1 2024. Furthermore,
according to the H1 report, the company anticipated cash inflows based on
profit transfer agreements with its subsidiaries. In H1, these subsidiaries
generated a combined net income of EUR 9.4m. CRE stated that "this amount,
along with the profits earned in the second half of the year, will be fully
transferred to CR Energy by year-end."

Given that these profit transfer agreements result in profits and losses
being passed on to CRE at yearend, the primary cause of the current
situation must have arisen in H2 2024 - since the performance in H1 2025
would not yet impact CRE's liquidity. This implies a severe deterioration in
business performance during the second half of FY 2024. As noted earlier,
this turn of events was unexpected by us and consensus.

This impression is further reinforced by the recently published annual
report of MPH Healthcare AG - CRE's majority shareholder (approx. 59%) -
which was released last Wednesday (May 28). It stated: "CR Energy expects to
maintain the positive development of its operating business throughout 2024.
The construction projects are on schedule." In light of that, CRE's news
seems even more surprising to us.

In our view, it appears rather odd that just two days later that very
company is putting such news.

That being said, it remains to be seen what will unfold in the coming days
and whether management can secure the necessary funding to continue
operations. In the meantime, we are suspending our rating for CRE and put
the stock UNDER REVIEW.

You can download the research here: http://www.more-ir.de/d/32778.pdf
For additional information visit our website:
https://www.nuways-ag.com/research-feed

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
++++++++++

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2149236 03.06.2025 CET/CEST

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