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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The issuer is solely responsible for the content of this research. The

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invitation to conclude certain stock exchange transactions.

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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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