ChromoGenics adjusts cost structure to meet market challenges and ensure long-term growth.

Stockholm, 2024-03-25 - ChromoGenics (NASDAQ: CHRO), a leading supplier of dynamic glass products and solutions, announced today the decision to adjust its cost structure to address market challenges and ensure long-term growth.

Over the past year, ChromoGenics has achieved significant improvements in its production process, resulting in increased efficiency and enhanced production capacity. The production processes are stable and contribute to a positive gross margin, providing a solid foundation for successfully driving the business towards profitability.

Despite these advancements, ChromoGenics has encountered challenges due to the weak economic conditions in the construction and real estate sectors, which are not expected to improve in the short term. Order volumes from international collaborations have taken longer than anticipated to materialize.

To address these challenges, the company has decided to adjust its cost structure by reducing personnel and implementing other measures to enhance efficiency. ChromoGenics intends to continue developing sales and marketing efforts while ensuring long-term production capabilities to effectively scale up delivery capacity as needed.

Negotiations regarding the reorganization leading to workforce reduction will be conducted with involved trade unions. ChromoGenics will carry out these changes responsibly and in close collaboration with the affected employees.

"Making decisions such as reducing personnel is always challenging and done with careful consideration and respect for the individuals involved. The improvements in production have provided us with a solid foundation, but we cannot ignore the challenging market situation.

Our solutions contribute to addressing some of the world's greatest challenges by reducing buildings' carbon footprint both during construction and use, as well as enhancing indoor well-being. By adjusting our cost structure and focusing on efficiency and scalability in production, we are creating the necessary conditions for long-term growth and profitability," says Fredrik Fränding, CEO of ChromoGenics.

Contact
Fredrik Fränding, CEO
Anne-Marie Gullman, CFO & Head of Investor Relations
Tel: +46 (0) 18 430 0430
E-mail: info@chromogenics.com
ChromoGenics (https://chromogenics.com/)

About ChromoGenics

ChromoGenics is a proptech company that produces smart dynamic glass, improving indoor environment and well-being while reducing energy consumption, operational costs, and climate impact in real estate. The product, ConverLight® dynamic glass, is based on a unique patented technology from the Ångström Laboratory in Uppsala, where electrochromic coatings are sputtered onto plastic films. The result is a dynamic foil that can be laminated into glass, providing effective sun protection in buildings, and reducing environmental impact in production, transportation, and usage. The dynamic foil is easy to transport and can be applied by local partners in the glass industry, avoiding the need for long-distance shipments of bulky glass. All products from ChromoGenics prioritize environmental and health aspects, focusing on eco-friendly materials, reduced energy consumption, increased access to daylight and views, and improved indoor comfort.

ChromoGenics' production facility in Uppsala has been partly financed through conditional loans from the Swedish Energy Agency. ChromoGenics' stock (CHRO) is listed on the Nasdaq First North Growth Market, with Vator Securities serving as the Certified Adviser.