ANNUAL
REPORT
2021
Business Registration No. 38 18 30 01
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Nordic Aqua Partners A/S
Hundegade 1, 6760 Ribe, Denmark
Business Registration No. 38 18 30 01
Contents
Nordic Aqua 3
Letter from Chairman 6
Environmental, social and corporate governance 14
Market 18
Board and Management 21
Board of Directors’ report 25
Financial Review 32
Responsibility statement from the Board of Directors 37
Management’s Review
Financial Statements and Notes 38
Notes on the Consolidated Financial Statements 45
Financial Statements Parent Company 58
Notes to the Financial Statements Parent Company 64
Parent Company Details 68
Independent Auditor’s Report 69
Financial Statements
Company and Reports
Annual Report 2021
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Beijing
Shanghai
Hong Kong
Gaotang
Nordic Aqua
Stage 1 under construction with an annu-
al capacity of 4,000 tonnes of fish from
2024
Fully funded to reach 4,000 tonnes, equi-
ty in place to reach 8,000 tonnes
Existing plan for 20,000 tonnes and an
ambition to reach 50,000 tonnes
Uniquely located near Shanghai, with ac-
cess to +100 million customers within 5
hours
World-class RAS team providing the best
land-based salmon farming experience
and know-how plus a management team
with extensive experience in building
businesses in China
Dedicated support from local authorities
and leading industry players
Nordic Aqua is a Nordic land-based Atlantic salmon
farming company, using cutting-edge technology
and expertise to set up the first fully integrated and
commercially scaled Recirculating Aquaculture Sys-
tem (RAS) farm for Atlantic salmon located in Ningbo,
China. With operations in place, Nordic Aqua will be
the first local producer of truly sustainable Atlantic
salmon to the Chinese market, positioned to deliver
fresh and locally farmed Atlantic salmon to ~100 mil-
lion of China’s wealthiest consumers within 5 hours
and 1.4 billion consumers within 24 hours.
3
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Timeline
2016
Nordic Aqua ApS is incorporated
First cooperation agreement with Chinese government
2020
Loan Agreement of MEUR 25 with Eksfin and Rabobank
Private placement of MEUR 60
Nordic Aqua listed on Euronext Growth under ticker NOAP
2022
Inlay of first eggs in hatchery on 9
th
March
2014
Project idea and initial discussions with local Chinese Authorities
2021
Construction initiated on stage 1 – 4,000 tonnes
Business Plan updated to 20,000 tonnes
Final rental agreement signed with local Chinese
government
Signed banking agreement with Bank of Ningbo
for working capital facility of RMB 35 million
2018
Recruiting of key personnel
Chinese subsidiary incorporated and operating licenses granted
Private placement of MEUR 3
4
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Key figures
(Figures in DKK 1000) 2021 2020 2019 2018 2017
IFRS main figures
Other operating income 620 0 0 0 0
Net financial income / expences -9,753 -6,517 -98 0 0
EBITDA -17,586 -18,987 -5,701 -3,843 -1,402
EBIT -17,752 -18,990 -5,703 -3,843 -1,402
Profit / (loss) before taxes -27,505 -25,507 -5,801 -3,843 -1,402
Profit/loss for the period -27,505 -25,507 -5,801 -3,843 -1,402
Cash flow from investment activities -108,009 -14,715 -8 0 0
Cash flow from financing activities 0 429,669 0 17,901 0
Payments for fixed assets -106,997 -5,431 0 0 0
Net cash flow -129,941 390,758 -4,890 188 1,046
Available cash 277,345 399,588 9,250 1,234 1,046
Net Interest-bearing liabilities 0 0 0 0 0
Total assets 405,962 414,934 9,422 15,302 1,045
Equity 398,456 412,959 8,702 14,514 1,030
Equity ratio 98.2 99.5 92.4 94.9 98.6
The numbers for the year 2017 are figures from the parent company and not recognized according to IFRS.
5
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Letter from Chairman
2021 marked the first year of actual startup after more
than 6 years of preparatory work. We entered the year
fully financed and just listed on Euronext Growth un-
der the ticker NOAP in December 2020. Most of Q1
was spent on implementing all plans and mobilizing
on site on Gaotang island. The comprehensive and
complex design package for construction of the infra-
structure, utilities and all facilities were handed over
to Zhetai [the government-owned investment compa-
ny being the owner of land, infrastructure, utilities and
facilities], which invited for bidding for the total con-
tract immediately thereafter to prenominated contrac-
tors. Zhetai confirmed that the total enterprise con-
tract was placed with Long Yuan in April, and already
in May the actual site preparation and construction
started.
The construction has progressed basically as per
plan; however, we had a close to 3-month delay in Au-
gust, due to soft and muddy soil heavily affected by
the strongest typhoon in more than 50 years. Ongo-
ing excavation and piling work had to be halted, and
due to safety reason avoiding excavated walls to col-
lapse, the entire area for the basement of the Hatch-
ery and RAS 01/02/03 had to be supported with a
specially designed cofferdam prior to piling and com-
pletion. Due to strong support from Zhetai and Long
Yuan, the delay caused by this incident was reduced
to a minimum. We could therefore hold the Roof Ceil-
ing Ceremony of the Hatchery and RAS 01/02/03 in
November.
We have experienced several challenges due to the
Covid 19 pandemic, in particular with respect to travel
restriction and logistics. However, we managed to
find solutions, and the progress of the project was not
affected.
Our main contractor for the RAS design and the sup-
ply of process equipment, AKVA Group, mobilized
their site team in Q3 and started the installation and
commissioning work in Q4. Thanks to good planning
and cooperation, the travelling restrictions and logis-
tic challenges did not have any impact on the arrival
of imported equipment, so the installation work has
commenced as scheduled.
We have also managed to grow the organization, with
a good combination of experienced expatriates and
local talents. We will continue our efforts to recruit lo-
cal talent early to let them get first-hand training while
doing the installation and commissioning of the RAS
systems.
The local government and local partners continue to
provide dedicated services and support across the
entire field of bureaus and organizations. We have
been able to discuss and agree on practical and flexi-
ble solutions whenever required, and we have en-
joyed fast-track solutions on all red tape processes
involved with such a complex project. The support of
local government and authorities has proven vital to
our success, and we are pleased to know that such
dedicated support will continue.
The market for Atlantic salmon in China has been very
strong in 2021. Market prices peaked in October at
NOK 163/kg HOG, and by year-end the prices were at
NOK 134/kg. During the first months of 2022, prices
have increased further. We believe that locally pro-
duced Atlantic salmon could achieve a premium pric-
ing on top of the cost advantage when considering
freshness and 24/7 delivery capability.
We are front runners with regards to RAS farming of
Atlantic salmon in China, a position we intend to main-
tain. We have therefore initiated a project to see how
we can accelerate our ambitions to reach 20,000 tons
annual capacity on current land, an initiative driven
by a combination of market demand and assuring our
position as the leading producer of Atlantic salmon in
China. Such expansion will be based on a coopera-
tion with local government inline with the same prin-
cipals as for current agreement, and we have there-
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fore initiated discussions with local government on
how to expand our cooperation to accommodate for
such an acceleration plan to reach 20,000 tons within
2027. We also held preliminary talks with potential
partners for long term take-off agreement and for mar-
keting and sale of our Atlantic salmon in China, and
such discussions indicated a strong interest and sup-
port for our acceleration plans towards 20,000 tons
capacity. These discussions have continued into
2022.
The good development has continued into 2022 and
on 9th March we were thrilled to receive the first salm-
on eggs on-site. Our production team is nurturing and
taking good care of these small salmon, and we look
forward to the first harvest in early 2024.
Ragnar Joensen
Letter from Chairman
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Targeting 20,000 tonnes in 2027
Nordic Aqua Partners A/S, through its 100% owned
company in China, Nordic Aqua (Ningbo) Co. Ltd., is
well underway to build a RAS-based salmon farm in
Ningbo, the first of its kind in China, with an initial an-
nual capacity of 4,000 tonnes. The company can ex-
pand up to 20,000 tonnes in annual production on
existing land.
The local government is providing dedicated backing
of the project, which has materialized in an attractive
long-term lease agreement where the government
provides infrastructure and facilities. The lease agree-
ment is currently for an initial 8,000 tonnes, however,
the rental fee on part of the grow-out facility for Phase
II is subject for renegotiation. A Letter of Intent to ex-
pand the annual capacity to reach 20,000 tonnes is in
the process of being formalized.
Construction of infrastructure and building of the ad-
ministration and the hatchery facility commenced in
Q2 2021 and completed in February 2022. Eggs were
introduced immediately after completion of the hatch-
ery, and with estimated production of two years, this
implies first harvest early 2024.
STAGE 1
Hatchery, administration, utilities
and grow-out facility for 4,000
tonnes
STAGE 2
Grow-out facility for
+4,000 tonnes
(Total 8,000 tonnes)
STAGE 4
Option for expansion
with 30,000 tonnes
STAGE 3
Grow-out for +12,000 tonnes
(Total 20,000 tonnes)
Roadmap to 20,000 tonnes and beyond on Gaotang Island
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Targeting 20,000 tonnes in 2027
TIMELINE OF GAOTANG BUILDOUT
2020 2021
Stage 1+2
8,000 tonnes
Q2 Eggs for stage 2
Q2 First Harvest stage 2
Stage 1+2+3
20,000 tonnes
Commences latest after stage 2
Q1 Expected steady state 20,000 tonnes
Stage 1
4,000 tonnes
Q1 First eggs in hatchery
Q1 First harvest and steady state 4,000 tonnes harvest
2022 2023 2024 2025 2026 2027 2028 2029
MILESTONES
Construction of stage 1 includes a stepwise construc-
tion of a smolt facility and a 4,000-tonne grow out facil-
ity. Stages 2 and 3 are expected to bring total annual
production to 20,000 tonnes by the end of 2027.
The company is leasing land, facilities, and infrastruc-
ture from the local government at a fixed price. Con-
sequently, this is not included in the company’s capex
budget. This reduces the project capex by 30-40%,
since all buildings and infrastructure are financed by
the local government. Financials for stage 3 have not
been formalized, but the company expects this to be
on similar terms as for stage 2, resulting in a total pro-
ject cost of MNOK 2,500 (excluding lease capex).
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The Gaotang facility will be built out in three stages with a total production capacity of 20,000 tonnes
Standard industry key figures in NOK
Stage 1 Stage 2 Stage 3**** Total
RAS Capex* 500 MNOK (370 MDKK) 500 MNOK (370 MDKK) 1,500 MNOK (1,100 MDKK) 2,500 MNOK (1,840 MDKK)
Equity requirement 600 MNOK (448 MDKK) TBD
Secured bank financing** 250+50 MNOK (186+36 MDKK)
Annual volume (HOG) 4,000 4,000 12,000 20,000
Capex/kg*** (HOG) 125 NOK (93 DKK) 125 NOK (93 DKK) 125 NOK (93 DKK) 125 NOK (93DKK)
WC/kg (HOG) 33 NOK (37 DKK) 31 NOK (27 DKK) 29 NOK (23 DKK) 29 NOK (23 DKK)
EBITDA cost / kg (HOG) 43 NOK (32 DKK) 41 NOK (30 DKK) 38 NOK (27 DKK) 38 NOK (27 DKK)
EBIT cost / kg (HOG) 51 NOK (38 DKK) 49 NOK (36 DKK) 46 NOK (33 DKK) 46 NOK (33 DKK)
Production Capacity (lwe) 127 Kg / m
3
127 Kg / m
3
127 Kg / m
3
127 Kg / m
3
* Excluding lease with local government, including biomass and start-up costs
** Converted with EUR 100 = DKK 745
*** Capex relates to processing equipment. Building is leased
**** Not formalized but estimated to be similar to stage 2
HOG (Head On Gutted)
lwe (Live weight equivalent)
WC Working Capital
Targeting 20,000 tonnes in 2027
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Processing
Plant
Purging
Technical
Area
Technology
Nordic Aqua is applying leading RAS technology and
know-how to develop the land-based salmon farming
facility. Nordic Aqua is very satisfied with the dedicat-
ed support shown by local authorities, which have de-
livered on time and with a committed interest in ensur-
ing steady progress. Moreover, Nordic Aqua has
employed an internal RAS team with extensive experi-
ence in successful operation of similar RAS systems.
The internal team believes that AKVA Group offers a
complete solution where operating costs, user friend-
liness, maintenance costs and other factors are opti-
mized. The system is a turnkey delivery with flexibility
in assembly, allowing the company to utilize its exten-
sive experience in building RAS facilities.
The first 4,000-tonne facility is divided into 9 RAS de-
partments, with hatchery and RAS 1-3 in a separate
6,200 m
2
smolt building over two floors, which also
include offices, service functions, canteen, and ac-
commodation facilities for future expansion. The larg-
er RAS 4-8 units will be located in the larger 29,000 m
2
production building, where the purging unit and pro-
cessing plant will also be located.
The basic idea with the AKVA RAS systems is to clean
the water from the fish tanks so it can be reused and to
maintain an optimal water quality for the salmon. The
basic stages in the water cleaning process are:
• mechanical filter to remove particles
• biofilter to remove ammonia and keeping the water
clear
• degasser to remove CO2 from the water
• ozone for clearing the water
The water cleaning system is designed with focus on
maintaining good water clearance for optimum fish
performance. The mechanical filters are well dimen-
sioned, and the biofilters are fixed so they are used for
cleaning out micro particles. Finally, ozone will be
dosed at low levels also for keeping the water clean.
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Technology
ILLUSTRATION OF TECHNOLOGY
Nordic Aqua will source the water from the ocean right
next to the facility in the Gaotang Sound. After several
years of monitoring and testing, the company is confi-
dent that the raw water is of superior quality for salmon
farming. Before entering the fish farm, the raw water
will be thoroughly filtered with sand filters and car-
tridge filter down to 5 microns before it is sterilized
with UV/ozone for preventing diseases and parasites
to enter the fish farm. Recent RAS history in Norway
and abroad has shown that incidents of fish mortality
mostly occur with RAS systems with high saline water,
which also is the reason why Nordic Aqua has chosen
to run the systems with low salinity. This is accom-
plished by producing freshwater from the seawater
with reverse osmosis membrane filters. The internal
RAS team members in Nordic Aqua have decades of
experience from operating RAS systems with low sa-
linity without any major incident of fish loss.
At the outlet of the fish farm and before the water
leaves the RAS systems back to the ocean, it is cleaned
to very high standards, and the discharged particles
are excellent fertilizers for neighbouring agriculture.
The main energy source is the local 400 GWh solar
and wind power facility. Moreover, the roofing of the
salmon farm will be covered with solar panels to pro-
duce around 25% of the energy consumption on site.
RAS TechnologyFiltration and
ultra-filtration
UV/Ozone filter Seawater to
freshwater
Cleaning outlet to
use as fertilizers
Clean water
back to the sea
Seawater
pumps
Mechanical
filtration
Sludge
Fresh
Water
Biofilter
Degassing
(CO
2
stripping)
Ozone
Pumps Oxygen
Fish tank
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Assumed Production Capacity
Underlying the company’s targeted production vol-
ume is an assumption of producing 127 kg (lwe) annu-
ally per m
3
tank capacity. The current actual industry
range of annual production capacity per tank volume
is 100 – 135 kg (lwe) per m
3
. In our facility in China, the
assumed production capacity is within the range actu-
ally achieved by land-based salmon farmers today.
If our experienced RAS and fish producing team at
Gaotang manages to increase the output from 127 kg/
m
3
to 150 kg/m
3
, the total capacity of stage 2 would
increase from 8,000 tonnes to 10,000 tonnes per year.
An increase of 2,000 tonnes equivalent of 25%.
0
2000
4000
6000
8000
10000
120 00
14000
0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 180 190 200
Kg l we/ m3
Zone actually reached*
*Based on personal communication with current industry players
Kg lwe/m
3
Phase 2 volume
NOAP
127
NOAP
150
Reducing
EBIT cost/kg
by NOK5
Stage 2 production volume for different kg (lwe)/m
3
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Environmental, social and
corporate governance
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In Nordic Aqua, we want to take
an active leading role in trans-
forming and restructuring the
Chinese aquaculture industry
into more efficient and less pol-
luting food production. We will
produce a nutritious Atlantic salmon with efficient
protein utilization and a low climate footprint in an
area with high population density.
Farmed Atlantic salmon is a rich
source of omega-3 fatty acids,
minerals, and vitamins. Health
authorities worldwide are rec-
ommending higher intake of
fish, especially oil-rich fish like
Atlantic salmon to prevent cardiovascular diseases. In
Nordic Aqua, we will secure food safety through strict
hygiene standards.
Nordic Aqua’s business concept is to provide
sustainable food to the Chinese market in the
form of locally farmed Atlantic salmon. Being
the first international company to set up a
commercially scaled Atlantic salmon farm in
China, using state-of-the-art recirculating aq-
uaculture system, we realized that ESG crite-
ria and reporting had to be an integrated part
of the project planning from day one. This is
therefore a brief report on what we have
achieved with respect to the ESG aspects so
far.
Nordic Aqua Partners A/S has just started to
report about ESG, why the ESG report does
not constitute a compliant report according
to Danish GAAP § 99a.
China has by far the largest aquaculture farm-
ing industry in the world; however, most aq-
uaculture farming is done with simple and
close-to-shore cages and inland ponds, all
with limited control of the impact on the envi-
ronment, and with the quality and safety of
the products. China therefore introduced a
directive in 2017, calling for the entire aqua-
culture industry to be restructured, to be-
come more sustainable, more efficient and to
ensure food quality and safety. This directive
also encouraged introduction of modern and
advanced farming technology to become an
important element of such restructuring and
has therefore been part of the project plan-
ning, with regards to renewable energy and
energy efficiency, freshwater conservation,
wastewater and effluent treatment and effi-
cient use of land resources. Nordic Aqua has
also participated with our vast international
experience in RAS-based salmon farming to
define regulations and procedures as re-
quired, thus contributing to our project now
being subject to the most stringent regula-
tions for RAS farming globally.
To monitor the ESG performance of our facili-
ty in China, we will document all production
protocols and set science-based targets on
environmental/social performance in accord-
ance with the highest quality standards. We
will adopt the GlobalGAP and ASC standards
once the production is in full-scale operation.
Eventually, we also aim to audit the ESG per-
formance according to Scopes 1, 2 and 3.
ESG – environmental, social
and corporate governance
UN SUSTAINABLE
GOALS
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In Nordic Aqua, we are creating
meaningful and safe jobs in the
modernization of aquaculture in
China. We are operating in a tra-
ditional fisheries community
with declining catches and will
therefore contribute to build up a sunrise industry in
the region. We focus on hiring locally and to build up
local competence, and we work in close collabora-
tion with local authorities, universities, and education-
al institutions to support the regional development of
local aquaculture competence. One of our aims is to
increase the regional social recognition of the aqua-
culture industry by being a modern and attractive em-
ployer. We offer extensive employee benefits – insur-
ance for employee and family, career progression
plans, and incentive bonuses. The health and safety
standards are kept at the highest level by systemati-
cally monitoring and preventing HES incidents. Our
experienced management team in China will contin-
ue the policy of zero tolerance of corruption.
The central Government issued
a directive in 2017 calling for the
entire Chinese aquaculture in-
dustry to be restructured and
become more sustainable. Sup-
ported by the Zhejiang provin-
cial Government, Nordic Aqua is pioneering the re-
structuring by constructing innovative and sustainable
aquaculture systems.
Traditionally, Atlantic salmon is farmed in a few foreign
countries thousands of kilometers away and air-freight-
ed into the Chinese market. Nordic Aqua’s modern-
ized facility ensures that fresh Atlantic salmon can be
sourced locally and sustainable.
In Nordic Aqua, we focus on re-
sponsible sourcing by balancing
economic, social, and environ-
mental concerns. All employees
follow the Code of Conduct for
business ethical behavior, and
major suppliers of feed, other raw materials, and tech-
nology should follow ESG conditions set by Nordic
Aqua. We will adopt the high quality and sustainability
standards of ASC and GlobalGAP once the production
is in full scale operation, ensuring that all activities have
minimal influence on biodiversity in our local area.
In protected closed contained environment on land,
our Atlantic salmon will swim in pristine water securing
good fish welfare free of antibiotics, parasites, and hor-
mones. With well-controlled environments, the loss of
fish in production will be minimized and during food
processing, all by-products will be collected and used
for highest possible food value.
Atlantic salmon farming is one of
the most efficient ways of using
natural resources to produce a
healthy protein: it has a low car-
bon footprint, high energy and
protein retention efficiency and
low water footprint. Nordic Aqua will further contribute
to lowering the carbon footprint by eliminating carbon
emissions from airfreight.
China has a net-zero energy goal by 2060, mainly by
converting to renewable energy sources. Our produc-
tion facility is located on Gaotang Island in the prov-
ince of Zhejiang. The island is a net exporter of renew-
able energy with a 400 GWh solar and wind power
plant in the immediate vicinity of Nordic Aqua’s Atlan-
tic salmon farm. On the farm site, the 39,000 m
2
roof
will be covered with solar panels to produce 25% of
the facility’s energy consumption. Within the salmon
farm, Nordic Aqua is subject to China’s strictest condi-
tions on relevant energy efficiency and consumption
as stated in the “Classification Standards of National
ESG - environmental, social and corporate governance
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Economy [GB/T4754-2017]”. The energy consump-
tion will be monitored on all major components and
will continuously be evaluated for improvements.
Nordic Aqua will work with all major suppliers to re-
duce the carbon footprint. Our strategic partner Nutre-
co is supplying feed through its subsidiary Skretting,
which has a general ambition to reduce the emission
in Scopes 1 and 2 with 30% and Scope 3 with 39% by
2030. Similar targets will be set with our supplier of ox-
ygen and lime.
Nordic Aqua has a negligible im-
pact on life below water, marine
wildlife, and marine ecosystems.
By producing Atlantic salmon
out of the sea, we are protecting
wild populations of fish and oth-
er wildlife from escapees, parasites, and disease pres-
sure. Through sustainable sourcing of feed, we are
supporting viable fishing regimes in the oceans.
The effluent from the farm is carefully treated for all or-
ganic particles before the cleaned water is led back to
the ocean. China does not have a specific regulation
for treating effluents from recirculated aquaculture
systems, but together with the local authorities, we
have set a high standard to ensure minimal impact on
the neighboring ocean.
In China, freshwater is generally
a scarce resource and through
the initial phase of discussions
with the provincial authorities,
Nordic Aqua was directed to lo-
cal reservoirs for freshwater sup-
ply. Since the agricultural activities are depending on
the same freshwater supply during dry summers, we
decided to produce all our own freshwater from the
adjacent sea, rather than competing with neighboring
activities for the restricted availability. Since we are
producing Atlantic salmon in low saline water, the col-
lected waste from effluents is well-suited as fertilizers
to local agriculture and farmers. In general, recirculat-
ing aquaculture systems are using limited amount of
freshwater, and in our systems, we have added the
“Zero Water” cleaning systems, reducing the freshwa-
ter consumption to 10% of standard RAS systems. So,
instead of the normal consumption of around 400 L of
freshwater per kg produced fish, the Zero Water sys-
tem can take the consumption down to 40 L of fresh-
water per kg produced fish.
Through sustainable sourcing of feed for Atlantic
salmon, Nordic Aqua is contributing to avoid deforest-
ation.
Achieving a sustainable future
will require concerted action
and collaboration. Nordic Aqua
will therefore maintain and de-
velop the dialogue with suppli-
ers, agricultural neighbors, the
local government, and relevant bureaus. To structure
the work toward sustainability, we will conduct a mate-
rial risk analysis regularly together with suppliers and
regional stakeholders. The analysis will be conducted
in accordance with the GRI standard and will ensure
good dynamics in the ESG work. Further partners will
be organisations working for a sustainable future.
ESG - environmental, social and corporate governance
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Market
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China is by far the largest consumer and producer of
seafood in the world, and according to the OECD, Chi-
na is expected to account for 51% of global consump-
tion growth over the next 8 years. Atlantic salmon is
still relatively new to Chinese consumers, resulting in
a modest relative consumption of ~100,000 tonnes in
2020/2021. However, Kontali expects consumption to
grow with a CAGR of 15% over the next 5 years, reach-
ing 250,000 tonnes by 2025. A key demand driver is
familiarization of salmon as a healthy source of protein
in the normal Chinese household. Today, all Atlantic
salmon is imported, mostly by air, resulting in fresh
salmon being 4 days old when introduced to the mar-
ket, and with a high carbon footprint.
China customs statistics has official data on import
prices of fresh Atlantic salmon before customs clear-
ance. By adding import taxes and handling costs, it is
possible to project wholesale prices. The Export Price
graph illustrates the strong wholesale prices in China
during 2021. Wholesale prices peaked in October
with NOK 163/kg HOG and by year end the prices
were at NOK 134/kg. By using projected forward At-
lantic salmon price to China of NOK 91/kg from Fish
pool 2022 and adding known import taxes and han-
dling costs only, this concludes with a cost to the im-
porter of NOK 126-133/kg. This corresponds well with
wholesale prices, which management observes to be
varying from NOK 140-154/kg based on various mar-
ket sources and freshness.
Nearly 100% of all Atlantic salmon consumed in China
is imported, mostly by airfreight as chilled salmon.
Current restrictions caused by the pandemic have re-
sulted in complicated packaging and customs clear-
ance restrictions. This, combined with reduced air-
freight capacity, has resulted in very high prices of
Atlantic salmon. We do expect these restrictions to
ease and the capacity of airfreight to improve; howev-
er, the cost of imported Atlantic salmon will continue
to be high, and the Chinese consumers will be willing
to pay a premium price for locally farmed and
high-quality Atlantic salmon available within hours af-
ter being harvested.
It is the company’s view that a locally produced Atlan-
tic salmon could achieve a premium pricing on top of
the cost advantage when considering freshness and
24/7 delivery capacity, which eliminates the importer
risk of having to place spot orders ahead of sales.
Market
· Market prices for fresh Atlantic
salmon are expected to
remain high even after current
pandemic restrictions have
been eased
· We therefore expect to see
attractive margins for our
locally farmed Atlantic salmon
also in 2024, our first year on
full capacity
· In December, wholesale
prices in China were NOK 134/
kg HOG and with an EBIT
cost/kg at NOK 51 the implied
margin would be NOK 83/kg.
· Relative to FOB-Oslo prices at
NOK 68/kg HOG, the extra
margin in China in December
was NOK 66/kg HOG.
Export prices 2021 and 2022 from Norway to China, NOK/kg HOG
0
20
40
60
80
100
120
140
160
180
Jan F eb Mar Apr Mai Jun Jul Aug S ep Okt Nov Dec Jan Feb Mar
F OB-Oslo FOB-Oslo (China) Wholesale China
Source: Norwegian Seafood Council, China custom statistics
51
NOK
Margin China
Margin Norway
NOAP budget EBIT cost
Stage 1
68
134
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Unique setup to meet market trend
Guaranteed freshness, food safety and quality are of extreme im-
portance to Chinese consumers. With basically all Atlantic salmon
being imported, Chinese consumers are not always convinced
when ordering their Atlantic salmon. Our locally farmed Atlantic
salmon will guarantee freshness and quality, expected to be well
received by local consumers.
The global shopping habits have changed towards online shop-
ping and direct home deliveries. China is leading this change, with
+50% of their retail done online. A great number of companies are
now guaranteeing delivery of fresh groceries at the doorstep with-
in less than one hour from ordering, and predictions indicate that
online shopping and home deliveries will continue to grow. An ev-
er-increasing number of specialized companies continue to deliver
a broader range of high-quality seafood, including strategies to
work closer with farmers to reduce costs, shorten delivery times
and increase flexibility, without jeopardizing quality and freshness.
We are currently the only company in China capable of meeting
such demand for fresh Atlantic salmon, and we have therefore initi-
ated discussions with leading companies and portals to prepare
for cooperation from harvesting all the way to the end consumer
based on this new future in retail shopping.
Market
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Board and
Management
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Board of Directors
Ragnar Joensen
Working Chairman
Ragnar Joensen is a Faroese citizen
with extensive management experi-
ence from the aquaculture industry.
Prior to the Company, he worked 17
years as Managing Director at Marine
Harvest (now Mowi). He has also
been in executive positions at Marine
Harvest Faroes, Marine Harvest Nor-
way and Marine Harvest ASA. Further-
more, Mr. Joensen has held several
board positions at leading aquacul-
ture companies.
Mr. Joensen holds a M.Sc. in Engie-
nering, Aquaculture from Aalborg
University, Denmark, and an MBA
from the University of Warwick, UK.
Ove Nodland
Board Member, CEO, NAN
Ove Nodland is a Norwegian citizen
but has lived and worked in Ningbo,
China since 1999. He has more than
25 years’ experience working in Asia
in various management positions, in-
cluding setting up and being the CEO
of Nordic Industrial Park in 2002,
where he has advised and supported
50 companies in setting up their busi-
ness operations in China. Ove is the
founding partner of Nordic Aqua and
initiated the project in 2014. Before
moving to China, he held manage-
ment positions in various companies
in Norway.
Mr. Nodland is an Honorary Citizen of
Ningbo and is a Qualified Mechanical
Engineer from the Stavanger College
of Technology.
Knut Nesse
Board Member
Knut Nesse is a Norwegian citizen,
working as CEO of AKVA group ASA, a
position he has held since November
2019. Prior to his current positions, Mr.
Nesse has extensive experience as a
CEO in leading international compa-
nies, including six years as CEO of
Skretting Group (part of Nutreco) and
six years as CEO of Nutreco. Mr. Nesse
has vast experience from board posi-
tions in several companies.
Mr. Nesse holds an MBA from the Nor-
wegian School of Economics and
Business Administration (NHH).
Jan Petersen
Board Member
Jan Petersen is a Faroese citizen. He is
the CEO of Christian í Grótinum, which
main activity trawlers, fishing and pro-
ducing around 90.000 ton of pelagic
fish per year. Mr. Petersen has held
the position since 2016. Prior to his
current positions, Mr. Petersen has ex-
tensive experience as CFO of Chris-
tian í Grótinum and Føroya Tele.
Mr. Petersen holds a Bachelor’s de-
gree in financial accounting and fi-
nance from CBS.
Knut Langeteig
Board Member
Knut Langeteig is a Norwegian citi-
zen, working as CEO and founder of
several companies. Mr. Langeteig has
over 40 years’ experience from the
pig farming industry. Over the last 10
years, Mr. Langeteig has also started
companies in the fish farming indus-
try. Mr. Langeteig is the co-founder of
Goodvalley, a pig farming company
which has grown from one farm in Po-
land to a company with over DKK 1.5
bn in revenues, Rbpi group.
Mr. Langeteig holds several board po-
sitions as chair of the board.
22
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Management
Company’s management profile
The Nordic Aqua Partners A/S registered
office is located at Dagmarsgades Vand-
tårn, Hundegade 1, 6760 Ribe, Denmark,
and serves as the business address for the
members of the Management in relation
to their positions in the Company.
Ole Juul Jørgensen
CEO,
NAP
Ole Jørgensen is a Danish citizen and
an active investor. Through his com-
pany, Invactor, he supports compa-
nies with capital and active owner-
ship. Mr. Jørgensen has been active
with businesses in China for several
years, and has, among other things,
facilitated the startup of several com-
panies in China. Ole is the chair of the
board of 10 companies and board
member of 13 companies.
Mr. Jørgensen holds a Graduate Di-
ploma in Business Administration
from Handelshøjskole Syd and a BSc,
Mechanichal Engineering from Søn-
derborg Teknikum.
Hjalti Hvítklett
CFO,
NAP
Mr. Hjalti Hvítklett is a Faroese citizen
with experience as CFO and auditor.
Prior to this position, he worked as
CFO at P/F Pelagos from 2014 to
2021. From 2002 to 2014, he worked
as an auditor.
Mr. Hvítklett holds a Master of Science
(MSc) in Business Administration and
Auditing (Cand. merc. aud.) from
School of Business and Social Sci-
ence, Aarhus University.
Arne Knudsen
Project Manager,
NAN
Arne Knudsen is a Norwegian citizen
but has lived and worked in China for
20 years. He has held various man-
agement positions while working in
China, most of them as General Man-
ager of TTS Marine, where Mr. Knud-
sen was in charge of setting up their
entire business operations. Before
moving to China, Mr. Knudsen has
worked in senior positions mostly re-
lated to the marine industries and
held senior positions with companies
such as Reber Shindler Heis AS, Hy-
dralift ASA, Hydralift Marine AS, and
TTS Marine ASA.
Mr. Knudsen holds a Machinist exam,
Maritime school in Kristiansand, and
is a certified Engine and Construc-
tion/Design engineer from Ålesund
College.
Catherine Shen
Chief Administration Officer,
NAN
Catherine Shen is a Chinese citizen
residing in Ningbo. Ms. Shen has ex-
tensive experience in setting up and
holding management positions with
foreign companies operating in Chi-
na. Ms. Shen has been instrumental in
the structuring and development of
the company. Ms. Shen has extensive
experience in liaising and negotiating
with government authorities and bu-
reaus and possesses an in-depth un-
derstanding of applicable rules and
regulations, taxes and duties, financ-
ing, and HR-related issues.
Ms. Shen holds an MBA from BI –
Fudan University, a Master’s Degree
from BI Norwegian Management
School, and a Bachelor of laws from
the University of International Busi-
ness and Economics, majoring in in-
ternational business law.
Ove Nodland
Chairman, CEO,
NAN
See profile on page 22
Ragnar Joensen
COO,
NAN
See profile on page 22
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Management
Ove Nodland
Chairman, CEO,
NAN
See profile on page 22
Ragnar Joensen
COO,
NAN
See profile on page 22
Johan Toftegaard
RAS and fish production expert,
NAN
Johan Toftegaard is a Faroese citizen
with more than 20 years of experience
in producing salmon in RAS systems.
He comes from the position as Fresh-
water Manager at MOWI Faroe Is-
lands.
Mr. Toftegaard is a mechanical engi-
neer and has been responsible for the
construction of several land-based
systems at MOWI and as a consultant
in other companies.
Mr. Toftegaard will assure that his ex-
tensive experience and know-how
are considered during design and
construction of the RAS system and
will be responsible for setting up and
implementing RAS operational proce-
dures and practices.
Yong Tan
Construction Quality Manager,
NAN
Yong Tan is a Chinese Citizen residing
in Shanghai. Mr. Tan has 20 years’ ex-
perience in quality management and
project management in various multi-
national companies, with more than
10 years in management position.
Mr. Tan is good at quality manage-
ment, problem solving, process im-
provement, team management and
data analysis. He has extensive pro-
ject management experience mainly
in shipbuilding, offshore, and oil &
gas industries.
Mr. Tan is a Lean Six Sigma Black Belt,
ISO9001 lead auditor, and holds a
College Diploma in Marine Engineer-
ing from Bohai Shipbuilding Voca-
tional College and an MBA from
Shanghai University.
Bergur Magnussen
Assisting Farm Manager,
NAN
Bergur Magnussen is a Faroese citi-
zen with more than 30 years of experi-
ence in producing salmon and trout
in flow-through and RAS systems. Ber-
gur has held various managerial posi-
tions in the Faroese and Danish aqua-
culture industry and has worked as an
independent fish farmer over the past
12 years.
Mr. Magnussen has been responsible
for the production of hundreds of fish
groups in his career. In addition, he
has been responsible for the con-
struction of several land-based sys-
tems through his management posi-
tions as well as he has assisted as
advisor in other companies.
Ola Frøvik
Farm Manager,
NAN
Ola Frøvik is a Norwegian citizen
(born in 1983) with more than 11
years of RAS salmon farming experi-
ence. He has held various positions
within the industry, including posi-
tions as Managing Director of Våga-
fossen Settefisk AS and Operation
Manager of MOWI, Vågafossen. As
Farm Manager, Ola will be responsi-
ble for the entire RAS operation, in-
cluding the important task of imple-
menting best farming practices and
training local RAS operators.
Ola Frøvik has during his carrier with-
in the aquaculture industry attended
a variety of programs and courses at
University Nord, NTNU and UIB within
production biology, fish health and
WM6010-RAS.
Matthew Bell
Technical Manager,
NAN
Matthew Bell is a British citizen with a
solid mechanical engineering back-
ground, specialising in remote area
work. He gained his experience in
RAS farming in Arctic Norway.
Prior to working with RAS farming, Mr.
Bell worked as a mechanical engineer
for the British Antarctic Survey, main-
taining and building mechanical sys-
tems at a research station and also in
deep field Antarctica.
Mr. Bell also has experience as a tech-
nical specialist/trainer for a German
mechanical handling company.
Mr. Bell is a qualified mechanical engi-
neer from the Barnfield Technical Col-
lege, UK.
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Board of Directors report
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Nordic Aqua Partners A/S is a public limited liability company incorporated in Denmark on 10
th
November 2016, organized and existing under the laws of Denmark pursuant to the Danish
Companies Act. Nordic Aqua was listed on EuroNext Growth in Oslo on 2
nd
December 2020,
under the ticker “NOAP”.
The 100% owned Subsidiary, Nordic Aqua (Ningbo) Co., Ltd, is a private limited liability com-
pany organized and existing as a Wholly Foreign Owned Enterprise under the Law of the Peo-
ple’s Republic of China (the “PRC”). The RAS Atlantic salmon farm will be operated and man-
aged by Nordic Aqua (Ningbo) Co., Ltd, located in Xiangshan county of Ningbo municipality.
Principal activities
The Group’s main activity is investments in breeding systems for fish and shellfish as well as
installing and operating these systems.
Group structure
The Group comprises two entities. Nordic Aqua Partners A/S acts primarily as a holding com-
pany to its 100% owned Subsidiary registered in China.
Our Mission
Our mission is to be the first to deliver live and locally and sustainably farmed Atlantic salmon
directly to the Chinese consumer, saving air freight costs and import duties and significantly
reducing the carbon footprint.
To achieve our objective, we employ state-of-the-art technology and best farming practices to
sustainably accommodate China’s rapidly growing appetite for high-quality protein.
To further develop our ambitious objectives and to continue to be a leader in the aquaculture
and salmon farming industry in China, we will take a leading and visible role in the ongoing
restructuring of the Chinese aquaculture industry towards greater efficiency, self-sufficiency
and sustainability. This also includes ambitious growth plans in both production, processing,
and cooperating with leading local players to deliver fresh salmon direct to consumers by us-
ing the best practices available.
Board of Directors report
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Board of Directors report
Main achievements in 2021
2022
Installation of AKVA Group
RAS technology started
Signed lease agreement with Xiang-
shan Strait Economic & Technological
Cooperation Co., Ltd
Signed banking agreement with
Bank of Ningbo for working
capital facility of RMB 35 million
Inlay of first eggs in
hatchery completed
Design package and site
preparation completed
Registered Capital of EUR 25,0
million fully subscribed in the
Chinese entity
Construction startup of Hatchery,
RAS 01/02/03 facility
Technical Manager and
Farm Manager on site in
Gaotang
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PROJECT REVIEW
Stage 1 of the project is largely developing on time
and within budget. Groundworks and site prepara-
tions for the hatchery and administration building
were completed in late April 2021. Since then, all focus
has been on the completion of the hatchery facility
and construction of RAS 1, 2 and 3 (“the small build-
ing”), which will also accommodate administration
and other support functions.
As reported in the December 2021 project update, a
typhoon and heavy rainfall in August caused slight
postponement of construction work. This did not re-
sult in additional costs for Nordic Aqua as construction
of facilities are carried under lease agreement.
However, it caused a slight delay to the construction
schedule and completion of the hatchery, moving
completion from December 2021 to February 2022.
Except for the unfortunate typhoon in August 2021
causing slight delays, project execution has been ex-
cellent, and the small building is expected to be com-
pleted by Q2 2022, according to plan. Construction of
the large building, housing RAS 4-8, purging and pro-
cessing plant, has commenced. The local authorities
are responsible for the construction of infrastructure
and facilities through the lease agreement. Nordic
Aqua is very satisfied with the dedicated support
shown by local authorities, which have delivered on
time and with a committed interest in ensuring steady
progress.
In April 2021, Longyuan Construction Group Co. Ltd.,
one of the leading construction companies in China,
was selected as main contractor for all infrastructure,
utilities, and facilities, and the company is now fully
mobilized on-site with site offices and dormitory.
Board of Directors report / Operations
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TIMELINE
Longyuan is aligning construction work with the dy-
namic and complex ongoing RAS installation work.
AKVA Group, the turnkey supplier of technology, pro-
cesses equipment and subsequent installation and
commissioning of the RAS equipment mobilized on-site
during the fall of 2021. Their local sub-supplier contract-
ed to do the mechanical and electrical installation ar-
rived at the site during the same time. AKVA Group and
its sub-suppliers share offices with the Nordic Aqua pro-
ject team and meet with the contractor on regular basis.
The first containers with the hatchery and RAS 01 and
RAS 02 from AKVA Group have already arrived on site,
and the installation work is progressing as per schedule.
On 9
th
March 2022, the company successfully complet-
ed its first inlay of eggs to the hatchery. With this, the
company entered the next phase, moving from project
phase to early phase productions. The eggs used in the
hatchery are quality eggs produced by Benchmark Ge-
netics Iceland and have been imported in accordance
with the license issued by local authorities.
As the company is now entering the production phase,
the senior RAS team is well into the process of strength-
ening the farming competence and capacity by re-
cruiting and training additional local farming opera-
tors. The organization now has 30 employees.
Board of Directors report / Operations
Q1
2022
Q1
2023
Q2
2022
Q2
2023
Q3
2022
Q3
2023
Q4
2022
Hatchery RAS 1
RAS 2
RAS 3 RAS 4 RAS 5
RAS 6
RAS 7
RAS 8
RAS 9
Timeline
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PROJECT FINANCIALS
The company leases land, facilities, and infrastructure
from the local government at a fixed price on a 20-year
term (see funding section for details on lease agree-
ment). Consequently, such costs are not included in
the capex overview. This lease agreement further elim-
inates all risks related to possible cost overruns for
such capex, which would normally account for 30-
40% of total capex expenditure for similar projects.
Capex payments are therefore related to RAS technolo-
gy only. The contract with AKVA Group is a turnkey de-
livery contract, which means that the contract amount
is fixed all the way to installation, commissioning, and
handover of the complete RAS system. Since the IPO,
the company has made some marginal capex savings
due to a combination of optimalization of design and
local sourcing of part of the capex, and all such savings
are used to further improve and optimize the design.
Capex overview stage 1
MDKK
Paid per 31.12.21 112
Distribution
Before 2021 6
2021 106
Remaining payments MDKK
2022 212
2023 46
The RAS technology was introduced during Q4 2021,
and the company consequently made its first large
capex payments during 2H 2021. The next large pay-
ment will be in Q2 2022 when major components ar-
rive on-site. Capex remains on budget.
Capex plan Gaotang Island stage 1
Total 370 MDKK
Board of Directors report / Operations
6
12
64
30
44
89
32
47
28
17
1
1Q 21 2Q21 3Q21 4Q21 1Q 22 2Q22 3Q22 4Q 22 1Q 23 2Q23 3Q23
30
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FUNDING
Total equity raised is DKK 448 million, of which DKK
418 million was raised in a private placement in con-
nection with the company’s IPO in Q4 2020.
Prior to the private placement, DKK 31 million of equity
capital was invested in the company. The company
expects to be fully equity funded to reach a produc-
tion of 8,000 tonnes but will need additional equity to
scale production further. Timing of a potential equity
issue depends on market sentiment and the timing of
upscaling. Stage 2 of the project is planned financed
through a combination of debt and retained earnings
from ongoing stage 1 operations.
Loan agreement signed
The Group has entered into a loan agreement with
Eksfin – Export Finance Norway*, and Coöperative
Rabobank U.A. (“Rabobank”) for a senior secured ex-
port credit term loan and guarantee facility agree-
ment, amounting to EUR 25 million. The loan amount
will be split in 3 drawings based on progress on
Capex. The Facility shall be repaid in equal, consecu-
tive quarterly instalments starting on the finishing
date of the Project, with maturity 10 years after the first
drawdown date. Rabobank is the world’s largest agri-
culture bank, with a 25-year history in China – and a
fully licensed branch in Shanghai.
Banking agreement and working capital facility
The company has an agreement with Bank of Ningbo,
Xiangshan Branch, to provide banking services to its
operation of the RAS based salmon farm in Ningbo,
China. The agreement includes typical banking ser-
vices for a company in rapid development and is
based on a long-term partnership. The agreement
also includes a conditional credit facility of MRMB 35
(MDKK 36) which will be used as a typical working
capital facility.
Attractive lease with local government
The company has entered into a 20-year lease agree-
ment in which the government of Xiangshan County
will provide land area and construction of all infra-
structure and buildings for a very attractive fixed
monthly rental fee. The landlord is Xiangshan Strait
Economic & Technological Cooperation Co., a
100%-owned subsidiary of Xiangshan government.
The structure of the lease agreement significantly re-
duces the risk to Nordic Aqua, as any eventual cost
overruns on the building side is with the landlord. The
payment of rental fee will start on 1
st
January 2024,
which concludes that no rental fee will be charged
while the company is building up its biomass prepar-
ing for first harvest and sale.
Due to the nature of the business of the company, it
has been agreed between the company and the
Landlord that the company can take temporary use of
the infrastructure, utilities and facilities while being
constructed. Such temporary use includes, but is not
limited to doing necessary installation and commis-
sioning work of RAS equipment, as start building bio-
mass. However, the buildings will not be formally
handed over to company until finally completed,
agreed to be when all utilities, infrastructure and RAS
equipment is installed and commissioned, scheduled
to be latest by December 31st 2023. Company will
start paying rent at the date of such formal handing
over of the facilities, however, no later than January
1st 2024. The Company has started using the first
part of the facility in Q1 2022, as the Company re-
ceived egg into the hatchery.
Overview of lease agreement
Step M
2
Monthly
lease Lease/kg
DKK/m
2
DKK*
Stage 1/A 38,000 24.2 2.8
Stage 2/B 19,000 24.2 1.4
Business plan 57,000 24.2 2.1
* Lease cost pr. kg. annual production HOG
Expansion to reach an annual capacity of 20,000
tonnes is expected to be done at similar lease terms
as per the provisions in the Letter of Intent being ne-
gotiated between the company and the local govern-
ment.
Board of Directors report / Operations
31
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Financial Review
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PROFIT AND LOSS
Personnel expenses for 2021 totalled DKK 8.6 million
(2020 4.1 million). The company has hired new per-
sonnel in administration and farming since last year,
which is the primary reason for the increase. Other op-
erating expenses totalled DKK 9.6 million (2020 14.9
million) during 2021 and consisted mainly of consult-
ants and advisors. Financial expenses are related to
interest payments on the undrawn loan facility, nega-
tive interest on cash and exchange deviations.
CASH FLOW
Net cash flow from operating activities was DKK -17.3
million in 2021 (2020 18.2 million).
Net cash flow from investing activities was DKK -108
million during in 2021 (2020 14.7 million). Investments
are related to AKVA technology and will gradually in-
crease as construction accelerates.
There was no cash flow from financing activities dur-
ing in 2021 (2020 429,7 million).
Total net cash flow during 2021 was DKK -130 million
(2020 390 million). Cash and cash equivalents at the
end of the period were DKK 277 million (2020 400
million).
FINANCIAL POSITION
The carrying amount of Nordic Aqua’s total fixed as-
sets per 31
st
December 2021 was DKK 123 million,
compared to DKK 15 million on 31
st
December 2020.
The increase is mainly related to AKVA technology.
Consolidated non-interest-bearing liabilities totalled
DKK 7 million.
Financial review
CASH FLOW SUMMARY
(Figures in DKK 1,000) 2021 2020
Net cash flow from operating activities -17,316 -18,194
Net cash flow from investments activities -108,009 -14,715
Net cash flow from financing activities 0 429,669
Net change in cash and cash equivalents -129,941 390,758
Foreign exchange differences 7,698 -420
Cash and cash equivalents at start of period 399,588 9,250
Cash and cash equivalents at end of period 277,345 399,588
33
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USE OF FINANCIAL INSTRUMENTS
The Group is exposed to interest rate risk and ex-
change rate risk. Cash and loan facility is primarily
held in EUR to match the upcoming Capex payments.
Loan facility is based on fixed interest rate.
The Group continuously monitors liquidity and finan-
cial projections through Master Plan, yearly budgets
and monthly updated forecasts.
A possible delay in the completion of construction of
the plant located on the Gaotang Island, Xiangshan
County in Ningbo municipality in China may have in-
fluence on our operational plan and full schedule of
production, thereby impacting the Group’s business,
liquidity, and result of operation.
The Group’s future financial position depends on
sales prices for salmon on the Chinese market. Other
future liquidity risks include the impacts from fluctua-
tions in production and harvest volumes, biological
issues, and changes in feed prices.
34
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Per 31
st
December 2021, Nordic Aqua had 10,283,984
issued shares, held by 593 shareholders.
Nordic Aqua Holding ApS is the company’s largest
shareholder with 5,168,922 shares, corresponding to
50.26% of total number of share outstanding. Nordic
Aqua Holding ApS is owned by Nutreco, key person-
nel, and others.
On the Annual General Meeting on May 27
th
, 2021, it
was decided that the Board of Directors were author-
ized to grant and issue warrants to key personnel of
up to 5% of the Company’s share capital. On March 3
rd
2022, The Board of Directors has allocated 437,070
warrants to the Company’s employees, which have
been subscribed by the relevant holders. Each war-
rant gives the holder a right to subscribe for one share
in the Company at a strike price of NOK 81 per share.
The closing price of the company’s share was NOK
65.80 per share as per 31
st
December, which corre-
sponds to a market capitalization of NOK 677 million.
During H2 2021, the average daily traded volume was
about 10,288 shares and the average daily traded val-
ue was about NOK 0.64 million.
Share information
20 LARGEST SHAREHOLDERS 31 DECEMBER 2021
Rank Number of shares held Ownership percentage Name
1 5,168,922 50.26% NORDIC AQUA HOLDING APS
2 881,778 8.57% KONTRARI AS
3 409,780 3.98% J.P. MORGAN BANK LUXEMBOURG S.A.
4 269,960 2.63% IMMOB INVEST AS
5 209,108 2.03% VERDIPAPIRFONDET NORDEA NORGE VERD
6 188,497 1.83% VERDIPAPIRFONDET NORDEA AVKASTNING
7 187,943 1.83% The Bank of New York Mellon SA/NV
8 167,944 1.63% VERDIPAPIRFONDET NORDEA KAPITAL
9 143,113 1.39% SILVERCOIN INDUSTRIES AS
10 110,702 1.08% VERDIPAPIRFONDET NORDEA NORGE PLUS
11 110,047 1.07% SPAREBANK 1 MARKETS AS
12 101,000 0.98% SONSTAD AS
13 100,770 0.98% SOUTH WINDS AS
14 92,968 0.90% KEWA INVEST AS
15 91,329 0.89% SN SAMLEREN AS
16 83,360 0.81% EQUINOR PENSJON
17 73,500 0.71% DNB Markets Aksjehandel/-analyse
18 71,301 0.69% Nordea Bank Abp
19 65,000 0.63% MØSBU AS
20 63,970 0.62% Danske Bank A/S
8,590,992 83.54% Total for 20 largest shareholders
1,692,992 16.46% Other 573 shareholders
10,283,984 100.00% Total number of shares
35
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At listing in Q4 2020, Nordic Aqua secured equity
funding for expansion up to 8,000 tonnes. Since then,
site preparations have been completed, and con-
struction of the smolt facility for Stage 1 and Stage 2
has started. As land, infrastructure, and buildings are
leased from the local government in China, they are
currently responsible for the work being conducted
on the site. The first milestone was completed in early
March 2022, with inlay of the first eggs. Production
cycle is estimated at two years, which means the com-
pany is on time for first harvest in Q1 2024.
At the end of 2021, the organization counted 20 em-
ployees. The company continues to recruit both for-
eign and local expertise, management, and staff to fill
the many positions needed to meet our ambitious ex-
pansion and development plans.
The financial expectation for next year is that Nordic
Aqua’s result will be a loss on MDKK 30-35, Nordic
Aqua expects a positive result for the year 2024, when
harvest will be initiated.
The company has initiated a project to investigate all
aspects of a possible accelerated expansion plan to
reach a capacity of 20,000 tonnes by 2027. This pro-
cess is expected to be concluded by end 2022.
Outlook
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Responsibility statement from the Board of Directors
EXECUTIVE BOARD
BOARD OF DIRECTORS
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Financial Statements
and Notes
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13. Leasing 53
14. Financial Risks and Financial Instruments 54
15. Audit Fees 56
16. Contingent Liabilities and Security for Debt 56
17. Related Parties 56
18. Events after the Balance Sheet Date 57
Income Statement 59
Balance Sheet 60
Cash Flow 62
Statement of Changes in Equity 63
Notes to the Financial Statements Parent Company 65
Consolidated Statement of Comprehensive Income 40
Consolidated Statement of Financial Position 41
Consolidated Statement of Changes in Equity 43
Consolidated Statement of Cash Flows 44
1. Basis of Reporting 46
2. Other External Expenses 48
3. Staff Costs 49
4. Financial Income and Expenses 49
5. Earnings per Share 50
6. Property, Plant and Equipment 50
7. Valuation of Biological Assets 51
8. Other Receivables 52
9. Cash and Cash Equivalents 52
10. Share Capital 52
11. Trade and Other Payables 52
12. Interest-bearing Loans and Borrowings 53
Notes on the Consolidated Financial
Statements
Financial Statements
Parent Company
Consolidated Financial Statements
Notes to the Financial Statements
Parent Company
Contents
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kDKK Note 2021 2020
Revenue 0
Other operating income 2 620 0
Other external expenses 2 -9,605 -14,876
Gross profit/(Loss) -8,985 -14,876
Staff costs 3 -8,601 -4,111
Operating profit/(loss) before amortisation and depreciation -17,586 -18,987
Depreciations 6 -166 -3
Operating profit/ (loss) berfore tax -17,752 -18,990
Financial income 4 157 469
Financial expenses 4 -9,910 -6,986
Financial expense - net -9,753 -6,517
Profit/loss before tax -27,505 -25,507
Income tax expense 0 0
Profit/loss for the period -27,505 -25,507
Other comprehensive income
Other comprehensive income that may be reclassified to profit or loss in subsequent periods (net of tax):
Exchange differences on translation of foreign operations 12,711 -420
Net other comprehensive income to be reclassified to profit or loss in subsequent periods 12,711 -420
Total other comprehensive income for the period -14,794 -25,927
Earnings per share
Basic 5 -2,67 -8,70
Diluted -2,67 -8,70
Consolidated Statement of Comprehensive Income
Financial Statements
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ASSETS
kDKK Note 2021 2020
Assets under construction 6 111,141 5,412
Property, plant & equipment 6 1,290 22
Deposits 8 10,296 9,284
Total non-current assets 122,727 14,718
Other current receivables 8 4,656 628
Receivables 8 1,135 0
Receivables from owners and management 8 99 0
Cash and cash equivalents 277,345 399,588
Total current assets 283,235 400,216
Total assets 405,962 414,934
Consolidated Statement of Financial Position
Financial Statements
41
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Consolidated Statement of Financial Position
Financial Statements
EQUITY AND LIABILITIES
kDKK Note 2021 2020
Share capital 9 10,284 10,284
Other equity 388,172 402,675
Other capital reserve 0 0
Total equity 398,456 412,959
Trade payables 6,687 87
Other current liabilities 11 819 1,888
Total current liabilities 7,506 1,975
Total liabilities 7,506 1,975
Total equity and liabilities 405,962 414,934
42
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Currency
kDKK Share capital translation differences Retained earnings Total Equity
Equity January 1
st
2021 10,284 -
Net profit/(loss) for the period -
-27,505
Exchange adjustment 12,711 12,711
Other comprehensive income 292 292
Total comprehensive income 0
Balance December 31
th
2021 10,284 12,428 375,744 398,456
Currency
kDKK Share capital translation differences Retained earnings Total Equity
Equity January 1
st
2020 195 138 8,369 8,702
Net profit/(loss) for the period -25,507 -25,507
Exchange adjustment 0
Other comprehensive income -
-420
Total comprehensive income 0 -420 -25,507 -25,927
Conversion of shares 1,759 -1,759 0
Capital increase 8,330 440,156 448,486
Transaction costs -18,817 -18,817
Compound financial instrument 515 515
Balance at 31 December 2020 10,284 -282 402,957 412,959
Consolidated Statement of Changes in Equity
On 26
th
F
ebruary 2020, the parent turned the corpo-
rate form from ApS to A/S. Share capital was increased
from kDKK 195 to kDKK 1,954 by transferring kDKK
1,759 from retained earnings.
Transactions with shareholders:
On 27
th
May 2020, share capital has been increased by adding net kDKK 7,329 to equity.
On 15
th
July 2020, share capital has been increased by adding net kDKK 1,489 to equity.
On 3
rd
September 2020, share capital has been increased by adding net kDKK 1,860 to equity.
On 1
st
October 2020, share capital has been increased by adding net kDKK 1,489 to equity.
On 25
th
November 2020, share capital has been increased by adding net kDKK 417,502 to equity, including
converting of 2 convertible loans obtained previously in 2020.
Financial Statements
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kDKK Note 2021 2020
Cash flow from operations
Operating profit/loss -
-18,990
Adjustments for:
Depreciation 6 166 3
Changes in working capital:
Change in other current receivables -
-462
Change in trade payables 5,532 1,255
Cash generated from operations -17,316 -18,194
Interest paid 4 -4,773 -6,471
Interest received 4 157 469
Net cash flow from operations -21,931 -24,196
Cash flow from investment activities
Payments for fixed assets and other capitalizations -
-5,431
Payments for intangible assets -1,012 -9,284
Net cash flow from investment activities -108,009 -14,715
Cash flow from financing activities
Proceeds from capital increase 0 448,486
Transaction cost of issue of shares 0 -18,817
Proceeds from new borrowings 0 0
Net cash flow from financing activities 0 429,669
Net change in cash and cash equivalents -
Foreign exchange differences 7,698 -420
Cash and cash equivalents at the beginning of the period 399,588 9,250
Cash and cash equivalents at the end of the period 277,345 399,588
Consolidated Statement of Cash Flows
The figures in the cash flow statement cannot be directly derived from the figures in th
e balance sheet.
Financial Statements
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Notes on the Consolidated
Financial Statements
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NOTE 1 BASIS OF REPORTING
Basis of preparation
The consolidated financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by the European
Union (EU) and additional requirements of the Danish Financial Statements Act
for class B.
The consolidated financial statements and separate financial statements are pre-
sented in thousand Danish kroner (kDKK) which is the functional currency of Nor-
dic Aqua Partners A/S.
The Group’s general accounting policies are described below. In addition to this,
specific accounting policies are described in each of the individual notes to the
consolidated financial statements. The accounting policies set out below and, in
each note, have been used consistently in respect of the financial year and the
comparative figures.
Materiality in financial reporting
In the preparation of the consolidated financial statements, Management aims to
focus on the information considered to be material and relevant for the under-
standing of the Group’s performance in the reporting period.
The consolidated financial statements are a result of aggregating large numbers
of transactions into classes of similar items according to their nature or function in
the consolidated financial statements. If a line item is not individually material, it is
aggregated with other items of a similar nature in the consolidated financial state-
ments or in the notes.
Management provides specific disclosures required by IFRS unless the informa-
tion is not applicable or considered immaterial to the economic decision-making
of the users of these consolidated financial statements.
Key account estimates and judgements
As part of the preparation of the consolidated financial statements, Management
makes a number of accounting estimates and assumptions as a basis for recog-
nising and measuring the Group’s assets, liabilities, income and expenses as well
as judgements made in applying the Group’s accounting policies. The estimates,
judgements and assumptions made are based on experience gained and other
factors that are considered prudent by Management in the circumstances, but
which are inherently subject to uncertainty and volatility.
The assumptions may be incomplete or inaccurate, and unforeseen events or cir-
cumstances may occur, for which reason the actual results may differ from the
estimates and judgements made.
There have not been identifies any key account estimates or judgements.
Notes on the Consolidated Financial Statements
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Basis of consolidation
The consolidated financial statement comprises the financial statements of Nor-
dic Aqua Partners A/S (the Parent) and subsidiaries which are entities controlled
by Nordic Aqua Partners A/S. The Group controls an entity when it directly or indi-
rectly owns more than 50% of the voting rights or may otherwise exercise a con-
trolling influence.
Principles of consolidation
The consolidated financial statements are prepared based on the financial state-
ments of the Parent and its subsidiaries.
The consolidated financial statements are prepared by combining items of a uni-
form nature and subsequently eliminating intercompany transactions, internal
shareholdings and balances and unrealised intercompany gains or losses. The
financial statements used for consolidation are prepared in accordance with the
Group’s accounting policies.
The accounting items of subsidiaries are recognised 100% in the consolidated fi-
nancial statements. Non-controlling interest’s share of subsidiaries’ profit or loss
for the year and net assets is included in the Group’s profit or loss and balance
sheet but are disclosed separately.
Investments in subsidiaries are offset by the interest’s share of subsidiaries’ net
assets at the acquisition date at fair value.
Cash flow statement
The cash flow statement shows cash flow from operating, investing and financing
activities as well as cash and cash equivalents at the beginning and the end of the
financial year.
Cash flows from operating activities are presented using the indirect method and
calculated as the operating profit/loss adjusted for non-cash operating items,
changes in working capital and income taxes paid.
Cash flows from investing activities comprise payments in connection with acqui-
sition of property, plant and equipment.
Cash flows from financing activities comprise changes in the size or composition
of the contributed capital and related costs as well as the raising of loans, repay-
ment of interest-bearing debt.
Cash and cash equivalents comprise cash.
Segment reporting
The Group is still in a start-up phase and therefore for management purposes, the
Group is currently organised in only one segment. Therefore, no further disclo-
sure relating to segment reporting was provided.
Standards issued but not yet effective
The new and amended standards and interpretations that are issued, but not yet
effective, up to the date of issuance of the Group’s financial statements are ex-
pected to have no impact on the Group`s consolidated financial statements. The
Group intends to adopt these new and amended standards and interpretations, if
applicable, when they become effective.
New standards
New standards implemented in 2021 have had no impact on the financial state-
ment.
Notes on the Consolidated Financial Statements
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NOTE 2 OTHER OPERATING INCOME AND EXTERNAL EXPENSES
Other operating income is measured at the fair value of the consideration re-
ceived or receivable for the sale. The Income is recognized net of discounts, VAT
and other sales related taxes.
Other external expenses include expenses relating to the Group’s ordinary activi-
ties and the startup costs, including expenses for external parties, stationery and
office supplies, marketing costs, etc.
Other external expenses include costs relating to listing on Euronext Growth.
Notes on the Consolidated Financial Statements
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NOTE 3 STAFF COSTS
Staff costs include employees’ salaries and bonuses, social security costs and
other staff costs for salaried employees.
kDKK 2021 2020
Salary 7,379 3,584
Other employee benefits 958 506
Social security costs 264 21
Total 8,601 4,111
Weighted average number of ful-time employees 17 3
Executive remuneration:
Board of Directors 420 132
Other key management personel
Ole Juul Jørgensen, CEO 90 66
Hjalti Hvítklett, CFO (from May 2021) 792 0
Ove Nodland, CEO Nordic Aqua Ningbo 1,522 1,411
Other key management personel total 2,404 1,477
Ragnar Joensen, Chairman 150 0
Knut Nesse 90 0
Knut Langeteig 90 66
Ove Nodland 0 0
Jan Petersen 90 66
Board of Directors total 420 132
In the consolidated companies, the remuneration of the Board of Directors is a
fixed annual salary.
NOTE 4 FINANCIAL INCOME AND EXPENSES
Accounting policies
Financial income and expenses include interest income and expenses and ex-
changes gains and losses on transactions in foreign currencies.
Interest on convertible loans raised in 2020 and converted later in 2020 is includ-
ed in financial expenses.
Commitment fees and loan cost from obtaining bank loan facility are included in
financial expenses.
Financial income
kDKK 2021 2020
Interest income 157 2
Exchange rate adjustment 0 467
Total 157 469
Financial expenses
kDKK 2021 2020
Bank charges -
22 -17
Interest bank deposits -
1,246
-183
Exchange rate adjustment -
5,138
-143
Costs for loan facility -
3,504
-3,232
Interest and costs on convertible loan 0 -3,411
Total -
9,910 -
6,986
Notes on the Consolidated Financial Statements
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NOTE 5 EARNINGS PER SHARE
The calculation of the basic and diluted earnings per share is based on the follow-
ing data:
Earnings
31 Dec 31 Dec
kDKK 2021 2020
Earnings for the purposes of basic
earnings per share being net profit
attributable to owners of the Company -27,505 -25,506
Effect of dilutive potential ordinary shares:
Earnings for the purposes of diluted
earnings per share -27,505 -25,506
Number of shares
31 Dec 31 Dec
2021 2020
Weighted average number of ordinary shares
for the purposes of basic earnings per share 10,283,984 2,932,945
Weighted average number of ordinary shares
for the purposes of diluted earnings per share 10,283,984 2,932,945
NOTE 6 PROPERTY, PLANT AND EQUIPMENT
Accounting policies
Property, plant and equipment are measured at cost less accumulated deprecia-
tion and impairment. Cost comprises the acquisition price and other directly at-
tributable costs until the date on which the asset is available for use.
Depreciation is recognised on a straight-line basis from the time of acquisition, or
when the asset is available for use, over the expected useful life. The expected
useful lives are assessed individually for every class of assets. A reassessment is
made once a year to ascertain that the depreciation basis reflects the expected
useful lives and future residual values of the assets.
The expected useful lives are as follows:
Other plant, fixtures and operating equipment 3-5 years
Impairment testing
The carrying amount of property, plant and equipment is reviewed to determine
whether there is any indication of impairment loss. If the recoverable amount of
an asset is estimated to be less than the carrying amount, an impairment loss is
recognised. There are no issues, that indicate the need of impairment.
Notes on the Consolidated Financial Statements
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NOTE 6 PROPERTY, PLANT AND EQUIPMENT
Other plant,
fixtures and
Construction operating
kDKK in progress equipment Total
Cost at 1 January 2021 5,451 30 5,481
Exchange rate adjustment 0 0 0
Additions 105,690 1,440 107,130
Cost at 31 December 2021 111,141 1,470 112,611
Depreciation and impairment at 1 Jan 2021 0 -5 -5
Depreciation for the year 0 -175 -175
Depreciation and impairment
at 30 June 2021 0 -180 -180
Carrying amount 111,141 1,290 112,431
Cost at 1 January 2020 0 8 8
Additions 5,412 19 5,431
Cost at 31 December 2020 5,412 27 5,439
Depreciation and impairment at 1 jan 2020 0 -2 -2
Depreciation for the year 0 -3 -3
Depreciation and impairment
at 31 December 2020 0 -5 -5
Carrying amount 31 December 2020 5,412 22 5,434
NOTE 7 VALUATION OF BIOLOGICAL ASSETS (RELEVANT FOR 2022)
Biological assets are, in accordance with IAS 41, measured at fair value less cost
to sell. The calculation of the estimated fair value is based on market prices for
harvested fish. In the accounts, the change in estimated fair value is entered to the
Income Statement on a continuous basis.
The Group’s biological assets are salmon at all stages of the life cycle. The fish is
divided into two main groups, depending on the stage of the life cycle. The first
group is eggs to post smolt. The second is post smolt to market size.
For the first group, historical industry cost is deemed a reasonable approach to
fair value, as there is little biological transformation.
For the second group, the fair value is calculated by applying a present value in
the fair value hierarchy in IFRS 13. In accordance with the principle in IFRS 13 for
highest and best use.
The valuations are based on an income approach and takes into consideration
unobservable input based on biomass, the estimated growth rate and cost to
completion at batch level. Mortality, quality of the fish going forward and market
price are considered. A special assessment is performed for batches with high/
low performance due to disease or other deviating factors. The market prices are
derived from observable market prices where available.
Notes on the Consolidated Financial Statements
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NOTE 8 RECEIVABLES AND DEPOSITS
Accounting policies
Receivables and other receivables are measured on initial recognition at fair value
and subsequently at amortised cost less impairments, if any.
Prepaid expenses comprise amounts paid in respect of goods or services to be
received in subsequent financial periods.
Deposits comprise a payment to local government for customized plant construc-
tion and amounts to kDKK 10,296. The deposit will be returned to Nordic Aqua
(Ningbo) Co., Ltd. step by step when it starts to pay corporate income taxes in
accordance with agreement.
kDKK Deposits
Cost at 1 January 2021 9.284
Exchange rate adjustment 1.012
Total 10.296
The Company granted a loan to Nordic Aqua Partners Holding ApS on February
1
st
2021. The loan is fully repaid in 2022.
Accounts receivable and other receivables are presented at face value less provi-
sions for bad debts. Provisions for bad debts are made based on an individual
assessment of the receivables concerned. Due to insignificant cost and the short
credit period, amortized cost is equivalent to face value less foreseeable losses.
kDKK 2021 2020
Receivables 1,135 0
Receivables from owners and management 99 0
Total 1,234 0
NOTE 9 CASH AND CASH EQUIVALENTS
Cash and cash equivalents are primarily held with financial institutions through
which the Group conducts its day-to-day banking transactions.
NOTE 10 SHARE CAPITAL
The share capital comprises 10,283,984 shares of DKK 1 each (2020: 195,407).
The shares are all authorised, issued and fully paid. No shares carry any additional
special rights. The Group continuously assesses the need for adjustment of the
capital structure.
The shares are listed on Euronext Growth in Oslo (Merkur Market) with ticker
“NOAP”.
There is no dividend proposed for 2021 (2020: Nil).
NOTE 11 TRADE AND OTHER PAYABLES
Accounting policies
Trade payables are obligations to pay for goods or services that have been ac-
quired in the ordinary course of business. These are classified as current liabilities
if payment is due in one year or less. If payment is due at a later date, they are
presented as non-current liabilities.
31 Dec. 31 Dec.
kDKK 2021 2020
Trade payables 6,687 87
Various taxes, including VAT 0 0
Other payables 819 1,888
Total trade and other payables 7,506 1,975
Notes on the Consolidated Financial Statements
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NOTE 12 INTEREST-BEARING LOANS AND BORROWINGS
Accounting policies
Bank loans are initially recognised at fair value net of transaction expenses and
subsequently measured at amortised cost using the effective interest method.
The Group has entered into a loan agreement with Eksfin – Eksportfinansiering
Norge and Coöperative Rabobank U.A. (“Rabobank”) for a senior secured export
credit term loan and guarantee facility agreement, amounting to EUR 25 million.
Loan amount will be split in 3 drawings based on progress on Capex. The Facility
shall be repaid in equal, consecutive quarterly instalments starting of finishing
date of the Project and the facility matures 10 years after the first drawdown date.
First drawing is planned to take place in 2023.
Nordic Aqua has an agreement with Bank of Ningbo, Xiangshan Branch, to pro-
vide a conditional credit facility of MRMB 35 (MDKK 36) which will be used as a
typical working capital facility.
Cash and loan facility is primarily held in EUR to match the coming Capex-pay-
ments. Loan facility is based on fixed interest rate.
31 Dec. 31 Dec.
kDKK 2021 2020
Credit facility 222,019 185,983
Undrawn credit facility -222,019 -185,983
Total financial liabilities 0 0
Included in the balance sheet:
Non-current liabilities 0 0
Current liabilities 0 0
Total bank loans 0 0
NOTE 13 LEASING
Accounting policies
The determination of whether a contract is, or contains, a lease is assessed at the
inception of the lease and is based on whether the contract coveys a right to con-
trol the use of an identified asset or assets for a period of time in exchange for
consideration. For contracts where the Group is the lessee, right-of-use assets
and lease liabilities are recognised at the commencement of the lease. Right-of-
use assets are measured at cost, less accumulated depreciation and impairment
losses. Right-of-use assets are depreciated over the useful life of the asset. When
a purchase option has been included in the cost at recognition, the right-of-use
asset is depreciated over the estimated useful life of the asset. The lease liabilities
at commencement date is measured at the present value of the lease payments.
The lease payments are discounted using the Group’s incremental borrowing
rate as the interest rate implicit in the lease is not readily determinable.
For leasing contracts with optional renewal period, and where we are reasonably
certain to exercise this option, the renewal periods are included in the calculation
of the lease liability and asset. The Group has lease contracts for various assets
used in its operation, the main asset group being transportation. Lease terms and
other conditions vary.
Nordic Aqua (Ningbo) Co., Ltd. has entered into an agreement with Xiangshan
Strait Economic & Technological Cooperation Co., Ltd, in which they will provide
land, infrastructure, utilities and all facilities on a 10 + 10 year lease, with a con-
tracted option for the Group to purchase land, infrastructure, utilities and all facili-
ties during the lease term. The annual lease amounts to MDKK 10.4 for Stage 1.
The executed Rental Agreement has a term of 10 years, with a right to extend the
term for an additional 10 years. The reason for splitting the 20 years term into a 10
+ 10 years terms, is simply to allow the rental fee to be adjusted to reflect fair mar-
ket price at the end of the first 10 years of the term, since the rental fee for the first
10 years is fixed. The term of the rental period starts at date of formal handover of
the facilities, latest at December 31
st
2023.
Notes on the Consolidated Financial Statements
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Due to the nature of the business of the company, it has been agreed between the
company and the Landlord that the company can take temporary use of the infra-
structure, utilities and facilities while being constructed. Such temporary use in-
cludes, but is not limited to doing necessary installation and commissioning work
of RAS equipment, as start building biomass. However, the buildings will not be
formally handed over to company until finally completed, agreed to be when all
utilities, infrastructure and RAS equipment is installed and commissioned, sched-
uled to be latest by December 31
st
2023. Company will start paying rent at the
date of such formal handing over of the facilities, however, no later than January
1
st
2024. The Company has started using the first part of the facility in Q1 2022, as
the Company received egg into the hatchery.
NOTE 14 FINANCIAL RISKS AND FINANCIAL INSTRUMENTS
Capital management
The Group’s Management assesses whether the Group’s capital structure is in
line with the interests of the Group and its shareholders. The overall objective is to
ensure a capital structure that supports long-term profitable growth. At 31
th
De-
cember 2021, the Group has no interest-bearing debt net, but has in the begin-
ning of 2021 entered into an agreement with Xiangshan Strait Economic & Tech-
nological Cooperation Co., Ltd, on lease of land, infrastructure, utilities and all
facilities. Furthermore, the Group has entered into a loan agreement with Eksport-
kreditt Norge AS (“Eksportkreditt”), Garantiinstituttet for Eksportkreditt (“GIEK”),
and Coöperative Rabobank U.A. (“Rabobank”) for a senior secured export credit
term loan and guarantee facility agreement, amounting to EUR 25 million accord-
ing to Note 12.
Following this further to the private placement which took place in 2020, the fi-
nancial facilities in the Group are considered sufficient to run the business for the
coming years.
Liquidity risk
The purpose of the Group’s cash management policy is to maintain adequate
cash resources to meet financial liabilities. The Group’s cash resources consist of
cash and cash equivalents, and undrawn credit facilities. The Group continuously
monitors the cash flows in order to manage the liquidity risk.
The Group has cash of MDKK 277, an undrawn bank loan facility of MDKK 186,
and an undrawn credit facilitiy of MDKK 36 as of 31
st
December 2021.
The following table reflects all contractually fixed pay-offs for settlement, repay-
ments and interests resulting from recognised financial liabilities.
Maturity of the Group’s financial liabilities:
Less than Between More than
kDKK 1 year 1-5 years 5 years Total
2021:
Trade Payables 6,687 0 0 6,687
Other Payables 819 0 0 819
Total 7,506 0 0 7,506
2020:
Trade Payables 87 0 0 87
Other Payables 1,888 0 0 1,888
Total 1,975 0 0 1,975
Notes on the Consolidated Financial Statements
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Foreign exchange risk
The Group is only insignificantly affected by exchange rate fluctuations. The
Group has in all material aspects only transactions in EUR, DKK and CNY.
The sensitivity analysis for foreign currency risk:
Cash and loan facility is primarily held in EUR to match the coming Capex-pay-
ments also in EUR.
Effect on
Change in profit
kDKK CNY rate before tax
2021 +5% -1,079
-5% 1,079
2020 +5% -350
+5% -350
Interest rate risk
Interest rate risks refer to the influence of changes in market interest rates on fu-
ture cash flows concerning the Group’s interest-bearing assets and liabilities.
The Group’s interest rate rights relate to interest on external loans and is deemed
insignificant.
Categories of financial assets and liabilities
The fair value of financial assets and liabilities does not differ significantly from
the carrying amount.
31 Dec. 31 Dec.
kDKK 2021 2020
Financial assets measured at amortised cost:
Other receivables 4,656 628
Receivables 1,234 0
Cash and cash equivalents 277,345 399,588
Total cash and cash equivalents 283,235 400,216
Financial liabilities measured at amortised cost:
Trade payables 6,687 86
Other payables 819 1,888
Total financial liabilities 7,506 1,975
Notes on the Consolidated Financial Statements
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NOTE 15 AUDIT FEES
Fees to auditors appointed at the Annual General Meetings:
kDKK 2021 2020
Statutory audit 139 89
Tax advisory services 191 33
Other services 82 364
Total audit fees 412 486
NOTE 16 CONTINGENT LIABILITIES AND SECURITY FOR DEBT
Accounting policies
Contingent liabilities include possible obligations that are uncertain and not
yet held. If the obligation is more likely to be in effect, a provision must then
be recognised.
Contingent liabilities
The existence of contingent liabilities is assessed on an ongoing basis whether
the criteria for recognising a provision are met.
Security for debt
As of 31
th
December 2021, no assets have been pledged.
Nordic Aqua (Ningbo) Co., Ltd. has entered into an agreement with Xiangshan
Strait Economic & Technological Cooperation Co., Ltd, in which they will provide
land, infrastructure, utilities and all facilities on a 10 + 10 year lease, with a con-
tracted option for the Group to purchase land, infrastructure, utilities and all facili-
ties during the lease term. The annual lease amounts to MDKK 10.4 for Stage 1.
The buildings will not be formally handed over to company until finally complet-
ed, agreed to be when all utilities, infrastructure and RAS equipment is installed
and commissioned, scheduled to be latest by December 31st 2023. Company
will start paying rent at the date of such formal handing over of the facilities, how-
ever, no later than January 1st 2024. The Company has started using the first part
of the facility in Q1 2022, as the Company received egg into the hatchery.
NOTE 17 RELATED PARTIES
Transactions with related parties
Balances and transactions between the Company and its subsidiaries, which are
related parties, have been eliminated on consolidation and are not disclosed in
this note. Transactions between the Group and its related parties are disclosed
below. Transactions to related parties could be loans, interest expenses on these
loans, general payables and receivables and tax settlements.
A company where the Chairman of the Board has significant influence, has re-
ceived advising fee for assistance to the company kDKK 1,650 in 2021 (2021:
kDKK 1.650).
A company where the Chief Financial Officer has significant influence has received
advising fee for assistance to the company kDKK 157 in 2021 (2020: kDKK 0).
There were no further transactions with the Board of Directors or the Executive
Board, besides remuneration. For information on remuneration, please refer to
note 3.
Shareholders Registered office Basis of Influence
Nordic Aqua Ribe, Denmark Significant influence *)
Holding ApS; 50,3 %
Ad *) The 16 shareholders in Nordic Aqua Holding ApS act in a professional ca-
pacity on behalf of its shareholders, and Nordic Aqua Holding ApS is entitled to
distinguish between the different shares and exercise the voting rights attaching
to the different shares in different ways (split voting).
Notes on the Consolidated Financial Statements
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NOTE 17 RELATED PARTIES
The Company has entered into the following contracts with two of its share-
holders:
• Feed sales and delivery agreement with Skretting, a subsidiary company of
Nutreco
• Trial and data access agreement with Skretting, a subsidiary company of
Nutreco
• Technology supply contract with AKVA Group, a company where Knut Nesse
– a member of the board of directors of the Company – is the CEO.
The agreements with AKVA and Skretting (Nutreco) have been entered into at
arm’s length and at market terms.
Nutreco and AKVA Group is an indirect shareholder of the Company through
Nordic Aqua Holding ApS.
The Company granted a loan to Nordic Aqua Partners Holding ApS on 99
tDKK, the loan is repaid in 2022.
Other than set out above, the Company has not entered into any transactions
with related parties during the last two financial years that may be material to
assessing the admission to trading on Euronext Growth.
NOTE 18 EVENTS AFTER THE BALANCE SHEET DATE
On the Annual General Meeting on 27
th
May 2021, it was decided that the Board
of Directors were authorized to grant and issue warrants to key personnel of up to
5% of the Company’s share capital. On 3
rd
March 2022, The Board of Directors has
allocated 437,070 warrants to the Company’s employees, which have been sub-
scribed by the relevant holders. Each warrant gives the holder a right to subscribe
for one share in the Company at a strike price of NOK 81 per share.
China continues it’s “zero tolerance” policy on the Covid 19 pandemic, causing
restrictions and challenges with respect to logistics and travelling. We were aware
of such challenges when planning our logistics together with main contractor,
AKVA Group, and we have therefore managed to minimize such consequences,
thus avoiding such consequences to have any material defect on the overall pro-
ject plan and budget. Most of the equipment to be imported have already arrived
at site. It should also be noticed that the market for our Atlantic salmon is 100%
domestic, and all raw material required for our production is made in China, with
the exemption of the salmon eggs being imported from Iceland.
The strict quarantine rules for visitors to China reduces the possibilities for foreign
expatriates to visit the project, and it also complicates the initiated rotating sched-
ule, however we have manged to find workable options. Unfortunately the same
restrictions also hinder the company to welcome our investors and other interest-
ed parties to visit the project. On a medium term we are of the opinion that these
restrictions will be eased and that travelling and logistics will be back to normal.
The unfortunate situation with the war in Ukraine has added to the logistic chal-
lenges, however we do not see this as a risk factor for our project. We may see an
increase in cost for certain raw materials in the short and medium term, such as in
fish feed, however the majority of our fish feed consumption will start towards the
end of 2022 and into 2023. As any such longer term cost consequences will ap-
ply to the entire industry, we do not consider our project to be particular at risk.
Apart from this, no events have occurred after the balance sheet date, which
would change the evaluation of the annual report.
Notes on the Consolidated Financial Statements
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Financial Statements
Parent Company
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kDKK Note 2021 2020
Gross profit/loss -4,145 -8,954
Staff cost -1,378 -198
Operating profit/(loss) before tax -5,522 -9,152
Other financial income 527 0
Other financial expenses -1,463 -4,690
Profit/loss for the year -6,458 -13,842
Proposed distribution of profit and loss
Retained earnings -6,458 -13,842
Proposed distribution of profit and loss -6,458 -13,842
Income Statement
Financial Statements Parent Company
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ASSETS
kDKK Note 2021 2020
Investments in group enterprises 1 186,043 186,043
Receivables from group enterprises 186,363 0
Other financial assets 372,406 186,043
Fixed assets 372,406 186,043
Receivables from group enterprises 26,612 2,265
Receivables from owners and management 99 0
Other receivables 1,069 432
Receivables 27,780 2,697
Cash 23,886 384,706
Current assets 51,666 387,403
Assets 424,072 573,446
Balance Sheet
Financial Statements Parent Company
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EQUITY AND LIABILITIES
kDKK Note 2021 2020
Contributed capital 10,284 10,284
Retained earnings 412,957 419,415
Equity 423,241 429,699
Trade payables 831 34
Payables to group enterprises 0 143,578
Other payables 0 135
Current liabilities other than provisions 831 143,747
Liabilities other than provisions 831 143,747
Total equity and liabilities 424,072 573,446
Balance Sheet
Financial Statements Parent Company
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kDKK Note 2021 2020
Operating profit/loss -5,522 -9,152
Change in working capital 2 -24,460 -3,155
Cash flow from operating activities before financial income and expenses -29,983 -12,307
Financial income, received 0 0
Financial expenses, paid -1,256 -4,175
Income taxes, received/(paid) 0 0
Cash flow from operating activities -31,239 -16,482
Share capital to group enterprises -143,578 -29,055
Loan to group enterprises -185,902 0
Cash flows from investing activities -329,480 -29,055
Proceeds from capital increase 0 448,486
Transaction costs of issue of shares 0 -18,817
Cash flow from financing activities 0 429,669
Cash and cash equivalents, beginning of the year 384,706 574
Net (decrease)/increase in cash and cash equivalents -360,720 384,132
Cash and cash equivalents, end of the year 23,986 384,706
Cash and cash equivalents in the cash flow statement comprise:
Cash and cash equivalents 23,986 384,706
The figures in the cash flow statement cannot be directly derived from the figures in the balance sheet.
Cash Flow
Financial Statements Parent Company
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kDKK Share capital Retained earnings Total equity
Equity beginning of year 10,284 419,415 429,699
Loss/profit for the year -6,458 -6,458
Equity end of year 10,284 412,957 423,241
Statement of Changes in Equity
Financial Statements Parent Company
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Notes to the Financial
Statements Parent Company
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NOTE 1 FIXED ASSET INVESTMENTS
kDKK Investments in group enterprises
Cost at 1 January 2021 186,043
Cost at 31 December 2021 186,043
Carrying amound at 31 December 2021 186,043
kDKK
Cost at 1 January 2020 186,723
Changes to exchange rates -680
Cost at 31 December 2020 186,043
Carrying amount at 31 December 2020 186,043
Investments in group enterprises of the total amount of the share capital in Nordic
Aqua (Ningbo) Co., Ltd.
Equity Registered Corporate
Investments in subsidiaries interest in form
Nordic Aqua (Ningbo) Co., Ltd. 100% China Ltd.
NOTE 2 WORKING CAPITAL
kDKK 2021 2020
Change in receivables from group enterprises -24,347 -2,265
Change in other receivables -776 -417
Change in trade payables and other payables 663 -473
Total change in working capital -24,460 -3,155
Notes to the Financial Statements Parent Company
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ACCOUNTING POLICIES
Reporting class
This annual report has been presented in accordance with the provisions of the
Danish Financial Statements Act governing reporting class B enterprises.
The accounting policies applied to these financial statements are consistent with
those applied last year.
Recognition and measurement
Assets are recognised in the balance sheet when it is probable as a result of a
prior event that future economic benefits will flow to the Entity, and the value of
the asset can be measured reliably.
Liabilities are recognised in the balance sheet when the Entity has a legal or con-
structive obligation as a result of a prior event, and it is probable that future eco-
nomic benefits will flow out of the Entity, and the value of the liability can be meas-
ured reliably.
On initial recognition, assets and liabilities are measured at cost. Measurement
subsequent to initial recognition is effected as described below for each financial
statement item.
Anticipated risks and losses that arise before the time of presentation of the annu-
al report and that confirm or invalidate affairs and conditions existing at the bal-
ance sheet date are considered at recognition and measurement.
Income is recognised in the income statement when earned, whereas costs are
recognised by the amounts attributable to this financial year.
INCOME STATEMENT
Gross profit or loss
Gross profit or loss comprises revenue and external expenses.
Revenue
Revenue from the sale of services is recognised in the income statement when
delivery is made and risk has passed to the buyer. Revenue is recognised net of
VAT, duties and sales discounts and is measured at fair value of the consideration
fixed.
Other external expenses
Other external expenses include expenses relating to the Entity’s ordinary activi-
ties, including expenses for premises, stationery and office supplies, marketing
costs, etc.
Staff cost
Staff costs include employees’ salaries and bonuses, social security costs and
other staff costs for salaried employees.
Other financial income
Other financial income comprises dividends etc interest income, net capital or
exchange gains on securities, payables and transactions in foreign currencies,
etc.
Other financial expenses
Other financial expenses comprise interest expenses, etc.
Notes to the Financial Statements Parent Company
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BALANCE SHEET
Investments in group enterprises
Investments in associates are measured at cost. Investments are written down to
the lower of recoverable amount and carrying amount.
Receivables
Receivables are measured at amortised cost, usually equaling nominal value less
writedowns for bad and doubtful debts.
Cash
Cash comprises bank deposits.
Other financial liabilities
Other financial liabilities are measured at amortized cost, which usually corre-
sponds to nominal value.
Cash flow statement
The cash flow statement shows cash flows from operating, investing and financ-
ing activities, and cash and cash equivalents at the beginning and the end of the
financial year.
Cash flows from operating activities are presented using the indirect method and
calculated as the operating profit/loss adjusted for non-cash operating items,
working capital changes and income taxes paid.
Cash flows from investing activities comprise payments in connection with acqui-
sition and divestment of enterprises, activities and fixed asset investments, and
purchase, development, improvement and sale, etc. of intangible assets and
property, plant and equipment, including acquisition of assets held under finance
leases.
Cash flows from financing activities comprise changes in the size or composition
of the contributed capital and related costs, and the raising of loans, inception of
finance leases, repayments of interest-bearing debt, purchase of treasury shares
and payment of dividend.
Cash and cash equivalents comprise cash and short-term securities with an insig-
nificant price risk less short-term bank loans.
Notes to the Financial Statements Parent Company
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Parent Company Details
Parent Company
Hundegade 1
6760 Ribe
Business Registration No.:
38 18 30 01
Registered office:
Esbjerg
Date of incorporation:
10.11.2016
Financial year:
01.01.2021 – 31.12.2021
Board of Directors
Ragnar Joensen, Chairman
Ove Nodland
Jan Petersen
Knut Nesse
Knut Langeteig
Executive Board
Ole Juul Jørgensen, CEO
Auditors
Deloitte Statsautoriseret
Revisionspartnerselskab
Dokken 8
6700 Esbjerg
Denmark
68
Annual Report 2021
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Opinion
Basis for opinion
Statement on the management’s review
Management’s responsibilities for the consolidat-
ed financial statements and the parent financial
statements
Independent Auditor’s Report
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Annual Report 2021
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Auditor’s responsibilities for the audit of the con-
solidated financial statements and the parent fi-
nancial statements
Independent Auditor’s Report
70
Annual Report 2021
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Report on other legal and regulatory
requirements
Business Registration No. 33 96 35 56
Identification No. (MNE) mne33707
Identification No. (MNE) mne34492
Independent Auditor’s Report
Annual Report 2021
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Business Registration No. 38 18 30 01
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“
Med
min
underskrift
bekræfter
jeg
indholdet
og
alle
datoer
i
dette
dokument.
”
Ragnar
Joensen
Mikael
Grosbøl
Bestyrelsesformand
Revisor
Serienummer:
PID:9208-2002-2-376455020262
Serienummer:
CVR:33963556-RID:30866638
IP:
62.92.xxx.xxx
IP:
83.151.xxx.xxx
2022-05-04
06:26:16
UTC
2022-05-04
06:27:20
UTC
Jakob
Olesen
Knut
Nesse
Revisor
Bestyrelsesmedlem
Serienummer:
CVR:33963556-RID:24373517
Serienummer:
9578-5997-4-223874
IP:
85.191.xxx.xxx
IP:
77.16.xxx.xxx
2022-05-04
06:38:01
UTC
2022-05-04
06:40:53
UTC
Ove
Nodland
Ole Juul Jørgensen
Bestyrelsesmedlem
Adm.
direktør
Serienummer:
9578-5997-4-1046772
Serienummer:
PID:9208-2002-2-958908719170
IP:
45.128.xxx.xxx
IP:
62.92.xxx.xxx
2022-05-04
08:32:40
UTC
2022-05-04
08:37:02
UTC
Ole Juul Jørgensen
Jan Petersen (CPR valideret)
Bestyrelsesmedlem
Bestyrelsesmedlem
Serienummer:
PID:9208-2002-2-958908719170
Serienummer:
a12a073f-a481-427a-8569-6cc261f0784c
IP:
62.92.xxx.xxx
IP:
62.92.xxx.xxx
2022-05-04
08:37:02
UTC
2022-05-04
08:41:15
UTC
P
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4
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6
Underskrifterne
i
dette
dokument
er
juridisk
bindende.
Dokumentet
er
underskrevet
via
Penneo™
sikker
digital
underskrift
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Underskrivernes identiteter er blevet registereret, og informationerne er listet herunder.
Dette dokument er underskrevet digitalt via
Penneo.com
. Signeringsbeviserne i
dokumentet er sikret og valideret ved anvendelse af den matematiske hashværdi af
det originale dokument. Dokumentet er låst for ændringer og tidsstemplet med et
certifikat fra en betroet tredjepart. Alle kryptografiske signeringsbeviser er indlejret i
denne PDF, i tilfælde af de skal anvendes til validering i fremtiden.
i Adobe Reader, kan du se, at dokumentet er certificeret af Penneo e-signature ser-
vice <penneo@penneo.com>. Dette er din garanti for, at indholdet af dokumentet
er uændret.
Du har mulighed for at efterprøve de kryptografiske signeringsbeviser indle-
jret i dokumentet ved at anvende Penneos validator på følgende websted:
https://penneo.com/validate
Sådan kan du sikre, at dokumentet er originalt
Dette dokument er beskyttet med et Adobe CDS certifikat. Når du åbner dokumentet
Knut
Langeteig
Bestyrelsesmedlem
Serienummer:
knut@knive.as
IP: 77.16.xxx.xxx
2022-05-04
10:07:39
UTC
“
Med
min
underskrift
bekræfter
jeg
indholdet
og
alle
datoer
i
dette
dokument.
”
P
P
e
e
n
n
n
n
e
e
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:
:
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W
4
G
6
Q
V
A
F
I
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4
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V
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8
T
A
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2
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N
Y
W
U
S
L
X
A
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1
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6
Y
Y
J
W
FL
2
E
C
-
H
-Y
C
E
2
5
2
F
Z
Y
-
-
4
P
A
I2
V
N
K
L
6
Underskrifterne
i
dette
dokument
er
juridisk
bindende.
Dokumentet
er
underskrevet
via
Penneo™
sikker
digital
underskrift
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Underskrivernes identiteter er blevet registereret, og informationerne er listet herunder.
Dette dokument er underskrevet digitalt via
Penneo.com
. Signeringsbeviserne i
dokumentet er sikret og valideret ved anvendelse af den matematiske hashværdi af
det originale dokument. Dokumentet er låst for ændringer og tidsstemplet med et
certifikat fra en betroet tredjepart. Alle kryptografiske signeringsbeviser er indlejret i
denne PDF, i tilfælde af de skal anvendes til validering i fremtiden.
i Adobe Reader, kan du se, at dokumentet er certificeret af Penneo e-signature ser-
vice <penneo@penneo.com>. Dette er din garanti for, at indholdet af dokumentet
er uændret.
Du har mulighed for at efterprøve de kryptografiske signeringsbeviser indle-
jret i dokumentet ved at anvende Penneos validator på følgende websted:
https://penneo.com/validate
Sådan kan du sikre, at dokumentet er originalt
Dette dokument er beskyttet med et Adobe CDS certifikat. Når du åbner dokumentet
Carina Vang Kristoffersen
Chairman of the meeting
Serienummer: PID:9208-2002-2-856934904984
IP:
185.229.xxx.xxx
2022-05-25 14:08:40 UTC
“Med min underskrift bekræfter jeg indholdet og alle datoer i dette dokument.”
Penneo
dokumentnøgle:
WGQAI
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