Interim report for the period January 1 - June 30, 2025

April – June 2025

• Net sales amounted to SEK 76.2 million (-)
• Operating profit/loss amounted to SEK -17.8 million (-20.5)
• Profit/loss after financial items amounted to SEK -29.5 million (-22.3)
• Earnings per share, before and after dilution, amounted to SEK -0.13 (-0.31)
• Cash flow from operating activities after changes in working capital amounted to SEK -36.6 million (-38.2)
• Production of potassium sulfate amounted to 10.8 thousand tons (production started in May 2024)

January – June 2025

• Net sales amounted to SEK 158.8 million (-)
• Operating profit/loss amounted to SEK -37.3 million (-34.2)
• Profit/loss after financial items amounted to SEK -66.3 million (-36.5)
• Earnings per share, before and after dilution, amounted to SEK -0.29 (-0.50)
• Cash flow from operating activities after changes in working capital amounted to SEK -56.8 million (-44.8)

Significant events during the quarter

• Cinis Fertilizer shipped three shiploads of potassium sulfate. The total cargo amounted to approximately 12,800 tons
• Cinis Fertilizer completed a capital raising and received SEK 156.9 million, before transaction costs. After new share issues totalling 156,568,166, the number of shares in Cinis Fertilizer AB amounts to 229,094,634
• Extraordinary general meetings were held on May, 2 and May 15, respectively
• The Annual General Meeting was held on June 25 and, among other things, elected a new board member
• In April, Cinis Fertilizer initiated a written procedure and launched an offer to participate in the guarantee commitment and acquire bonds. The written procedure was approved in May
• The 2024 Annual report was published

Significant events after the quarter

• On June 25, 2025, the Annual General Meeting resolved to introduce two new incentive programs for the company’s Chairman and CEO, respectively. On July 17, 2025, Roger Johansson acquired 9,362,403 warrants of series 2025:1 and 4,611,333 warrants of series 2025:2. On the same date, Jakob Liedberg acquired 17,724,669 warrants of series 2025:1 and 8,730,061 warrants of series 2025:2
• Cinis Fertilizer shipped another shipload of potassium sulfate of approximately 4,900 tons

CEO'S COMMENT 

Stable production achieved - foundation for driving profitability improvement

I am deeply impressed by the efforts and commitment of my colleagues. During the first half of 2025, we have driven focused and prioritized actions to improve production reliability and efficiency in our plant in Örnsköldsvik. As a result of this intense and challenging work, the production output has steadily improved during the second quarter of 2025, while we have carried out necessary improvement and maintenance work. The goal remains to reach a production rate equivalent to 100,000 tons per year by the end of 2025.

The measures taken in the operations have yielded results in the form of higher capacity utilization. This improvement together with higher availability has resulted in and will continue to increase production volumes and stabilize quality as we continue implementing considered actions further. An important part of our improvement work is to constantly work on getting the technical equipment and its controls optimized for our process. We see that the gap to designed capacity is mainly due to the deficiencies in the delivered technology. During the second quarter of 2025, we have evaluated the action plan proposed by our technology and process supplier to address this gap. Based on the proposals, we have implemented more cost-effective solutions, which include improved cooling capacity and machine parts with higher reliability. Furthermore, we have decided not to replace the blower motor, which is an important part of the process, as we have determined that replacement will not lead to increased production capacity.

The efforts to increase availability have been more extensive and systematic than our assessment made at the beginning of the year, and we have now built in-depth knowledge of process technology among all employees, which is an important prerequisite when we want to increase availability and consequently, production volumes. We have now significantly raised the bar on what a normal production day should be, and all Cinis Fertilizer’s employees constantly seek the opportunities to, by the end of 2025, reach the plant’s production capacity of 100,000 tons potassium sulfate.   

Northvolt filing for bankruptcy, together with the general raw material price development, has resulted in substantial input cost increases. This, combined with the delay in our ramp-up, forced us to raise additional capital during the second quarter of 2025. I would like to extend a big thank you to all investors who believe in us. Many of you are new shareholders and bond investors and your participation shows that you believe in Cinis Fertilizer’s sustainable products, process and business model in the long term.

We have a solution to a growing industrial problem and have proven ourselves on a large scale. Your support is encouraging and gives us the opportunity to continue developing the company into an important player in securing food supplies and reducing agriculture’s carbon footprint while enabling the expansion of new industry linked to a transformation of the world’s vehicle fleet. Cinis Fertilizer is one of the few mineral fertilizer producers in Sweden and our potassium sulfate is a strategic product for food production in the country and the rest of the EU. We see strong and growing demand for both our mineral fertilizer and our offering to the industry to solve a real environmental problem.

Cinis Fertilizer continues to work on several initiatives aimed at improving the company’s profitability. In the short term, the focus is on optimizing logistics and measures are taken to reduce the costs of input materials, primarily sodium sulfate and potassium chloride, despite pressure on the market for higher raw material prices. Our strong partnership with van Iperen gives us the opportunity to discuss measures to broaden sales of our products and increase revenues.

The geopolitical situation in the world is changing rapidly, and issues such as tariffs and trade barriers, as well as decisions by battery material manufacturers, affect the prioritization of our upcoming projects. We are in ongoing discussions with a large number of industrial partners for the supply of sodium sulfate to potential future production facilities. These include leading players in battery manufacturers, chemical industries, and pulp mills in Europe, North America, Asia, and Australia.

We see that several businesses have the opportunity to reduce their climate and environmental impact by involving Cinis Fertilizer in their value chains. In the Nordic region alone, there are large volumes of sodium sulfate that have the potential to replace the imports that we are currently forced to make because of the unexpected loss of circular residual product that we counted on when we started the construction of our first production facility. I would like to deepen ongoing discussions, and I welcome all inspired companies to the dialogue, I believe we have a lot to gain from joint efforts.

Starting in the third quarter, we are also making some organizational adjustments. I am pleased that Roger Svensk has accepted the role as the company’s Deputy CEO, in addition to his current role as Chief Operating Officer. Together with the rest of the management team,  consisting of Henrik Andersson, CFO, Anders Antonsson, IR & Communications, and Maria Danell, who will take up her new role as HR Manager in September, we have the ambition to increase the pace and deliver the necessary measures in Örnsköldsvik, in parallel with business development and other strategic projects. This is the right time for us to prepare the organization to address and work on the increasing number of industrial leads and potential projects, where we have a very strong offering to present.

We have published information on the pricing of potassium sulphate and potassium chloride in our interim reports to illustrate the price development during a very turbulent time following Russia’s invasion war in Ukraine. With a return to a more stable market, we believe that this information is better suited in our annual report, which is why this interim report will be the last that includes a graph of this price development.

The world is in constant motion with sudden developments. We have proven time and time again that we have been prepared, can improvise, adapt and overcome factors that affect the plans we make.

The explanation is two-folded: our strong organization with competent employees and our offer that is based on a sound idea of solving a real environmental and industrial problem. Everything indicates that we are moving away from a society dependent on oil and gas and with this development, Cinis Fertilizer has a clear place in the emerging infrastructure. The latest proof of developments in global battery production in constant motion is the growing number of new ventures emerging and announced framework agreements recently.

Cinis Fertilizer will become a cornerstone in the chemical process industry where we manage residual flows and convert them into mineral fertilizers needed for our food production. Our technology makes it possible to manufacture the final product with less than half the energy consumption per produced ton compared to today’s fossil-based and prevailing production methods. We are seeing strong demand for our product, which is already being sold worldwide to farmers who want to reduce their climate impact. We now look forward to work relentlessly to improve and optimize our production, as well as strengthening our profitability.

Jakob Liedberg, CEO

For full report, please see attached file.

For more information, please contact:

Jakob Liedberg, CEO
[email protected]
+46 768 58 12 86

Anders Antonsson, IR and Communications Manager
[email protected]
+46 709 994 970

Henrik Andersson, CFO
[email protected]
+46 705 70 87 53

This information is such information that Cinis Fertilizer is obliged to make public pursuant to the EU’s Market Abuse Regulation. This report has been prepared with a Swedish and an English version. In the event of any discrepancies between the two, the Swedish version applies. This information was published, through the agency of the contact persons above, on August 21, 2025, at 08:00 a.m. CEST.

About Cinis Fertilizer
Cinis Fertilizer is a Swedish greentech company that produces an environmentally friendly mineral fertilizer, potassium sulphate (SOP), by among other things, recycling residual streams from the manufacture of batteries and battery materials, as well as from the pulp and other industries. The patented technology uses half the energy of current production methods and results in a mineral fertilizer with a low carbon footprint. A unique and circular contribution that enables sustainable agriculture. FNCA Sweden AB is the company's Certified Adviser. For more information, visit www.cinis-fertilizer.com.