Thank you very much, and welcome to this interim report covering the period of the 1st of January to the 30th of June 2026. I will begin with some short figures.

As previously communicated, in the quarter we see a low net revenue, the second quarter of the year. Compared to last year, revenue increased by 30% to 20 million SEK, but compared to the previous quarter, we see a total decrease of 60%.

This pattern is mainly the same as the corresponding quarter of last year, where we also had a seasonal downturn and a large effect from OEM/white-label customers balancing their stock levels. On the positive side, we are seeing improved turnover on a rolling 12-months basis by 7%.

This is indicating a momentum for us moving into the heating season that we consider to be a very positive sign, leaving this low season and this quarter behind us. Sales on our own product brand, ES Energy Save, increased by 23% in the quarter, reaching 13.8 million SEK, and the OEM/white-label sales increased by 46% to 6.2 million SEK.

Both areas decreased compared to the previous quarter, but we saw the largest decrease in the OEM/white-label sales segment. Cost levels are still balanced and are still also decreasing.

We saw in the quarter an OPEX decrease of 7% approximately compared to last year. The low seasonal revenue in this quarter resulted in a negative EBIT of -13.4 million SEK.

This corresponds to an EBIT margin of approximately -57%. We are currently now in a shift of refrigerants.

We are switching to propane across all our product lines. Worth to mention in this quarter is that even though we have low levels of sales, we do have the highest levels of sales so far in the R290 segment, in our own brand, ES Energy Save sales.

This is also something indicating a momentum for us moving in to the heating season.

Thank you very much, Helena. We, as Helena also said, said that we do see that both sales and demand for our own ES Energy Save branded units are growing in the market in both residential and commercial.

We are also growing in our OEM/white-label sales. During quarter two, we initiated a spare part partnership together with JS Energi in Sweden.

This is as we are increasing our heat pump population in Sweden. We are getting prepared for a long-term collaboration when it comes to spare part distribution within the Nordic countries.

We'll come back a little bit more on this later when we go through the numbers on the regional part. Also in the second quarter, we changed the name of our company name from ES Energy Save Holding AB to ES Group AB.

This is to clarify in part of our strategy when we go to the markets with both ES Group, who have the capabilities, competences, product platform to do the OEM/white-label, meanwhile differentiates our own products brand of ES Energy Save. This enables us to be able to go to the market on the two path and more clear in our communication, also toward the investors.

Mm. After the end of the quarter, we secured a financing of 17.8 million gross capital to strategic investors, and with the money we aim to continue accelerate our growth in the OEM/white-label segment and also the commercial business segment.

With that summarized, we are looking in a bit more specifically on the numbers here. Net revenue and operating income here, you can see clearly the pattern is the same as second quarter of last year.

We saw an increase from low levels in net revenue by 30%, reaching 20 million SEK, and an increase in operating income by 42%, reaching 23.6 million SEK in the quarter. This is also where we can find that we have on a rolling 12 months an increase in net revenue by 7%.

This is the momentum I mentioned earlier. Looking into the business area split in the quarter, we see an increase here both on the residential property side and on the commercial property side.

Residential property sales increased by 30%, reaching 17.3 million SEK in the quarter, and on the commercial property side, an increase by 36% to 2.4 million SEK in the quarter approximately. This increase on both segments is increased sales of R290 units.

This is a very positive indication. The increase in the commercial property is actually big enough that sales on the commercial property this quarter is approximately 50% propane units now.

It's a good number for looking forward.

We can also add here to this is that by end of quarter one, we launched formally, introduced our R290 for commercial units to our distributor, to the market. The unit that we distributed over the second quarter are mainly first installations where we supported and trained our distribution network with the training programs to secure that they have confident and good startups.

With all the good things we have done in the second quarter, we expect we can accelerate later on the second half of this year.

On the brand sales split, we see, I mentioned on the first slide, an increase on OEM/white-label sales by 46% in the quarter. This is from low levels.

ES Energy Save, our own brand sales, by 23%, reaching 13.8 million SEK in the quarter. This was also an increase on both sides to the comparison quarter, but a decrease to the previous quarter.

I will move on to the geographical split of sales. Here we can see an increase on the Scandinavian market by 208%.

This is also from low levels, but still a significant increase, reaching 4.8 million SEK compared to 1.6 million SEK in the comparison quarter of last year. Europe, except from Scandinavia, increased by 10%, reaching 15.2 million SEK compared to 13.9 million SEK in the comparison quarter.

The increase here on the Scandinavian market has mainly two reasons. First off, we have seen an increase really throughout the year, but especially in this quarter, in sales activities promoting older refrigerant units, mainly on the Swedish market.

We also see a positive increase overall to sales on the Danish market. This is also a very positive sign in this.

What I can add on this topic is that we are increasing our population of heat pump, ES Energy Save-branded heat pump, in the Scandinavian market. For this reason, we do see that, okay, in order to deliver a good customer satisfaction throughout the lifetime of the heat pump, we needed to collaborate with JS Energi.

We entered alliance and partnership together with them where they can help. They are very skilled in distributing spare parts throughout the Nordic market.

We entered an alliance, partnership, together with JS Energi in order to safe how do you say? Secure.

To secure a future high service level to the end customer that has acquired ES Energy Save-branded heat pumps.

Exactly. Heat pumps sold, we have sold 405 heat pumps in the quarter.

This is to be compared with second quarter of last year, where we sold 247 heat pumps. I think I'll be moving on from that to the OPEX slide.

The OPEX, I mentioned it on the first slide, a 7% decrease in overall costs. The split here is a decrease of other external costs by 13% from the comparison quarter, reaching 8.4 million SEK in the quarter.

In the comparison quarter, OPEX other external cost was 9.7 million SEK. Personnel expenses, slight decrease by 1%, reaching 10.4 million SEK in the quarter.

All in all, OPEX for the quarter reached 18.8%. This is a sign we believe both to our now stabilized cost, but that we are still having a continued cost awareness and decreasing costs where possible.

Moving on to the EBIT and margins, as we expected, we have a low EBIT margin for the second quarter. This was negative by -57%, following a similar pattern as last year's second quarter, with season and OEM/white-label customers balancing their stock.

Gross margin also worth to look at decreased to 25% in the quarter compared to 29% last year. This is affected a lot by the increased sales activity on the Nordic market and overall promoting older refrigerants.

With the rest of the quarter having an otherwise low revenue, the effect is larger than it would be a normal quarter. I also want to say on this slide that we do expect to improve margins moving into the heating season.

Looking at the balance sheet, we notice a continued decrease here in our stock levels. This is, as in previous quarters during the year and also last year, due to a continued sales activities promoting the older stock units and with the older refrigerants.

Really, we are in a shift here moving into propane over time. At the same time as we are promoting these older units, we are also stocking up on R290, on propane units.

All in all, we do have a very healthy stock level, and we will continue this work to phase in propane products and phase out the older refrigerants. Yeah.

About cash flow, total cash flow in this quarter was -4.2 million SEK. This is to be compared to cash flow in the comparison quarter last year, -8.6 million SEK.

All in all, cash decreased by 13%, and cash at the end of the quarter was 18.4 million SEK compared to 20.7 million SEK in the comparison quarter of last year. Very good.

Summarizing a bit about specific achievements and milestones that have been reached in the period, we did increase net revenue for both our own brand and the OEM/white-label sales, but we did that from very low levels for the quarter, and we do expect better revenue levels moving on. If you look at a rolling 12 months, you can see that net revenue has increased by 7%, which is a very good sign for us and showing momentum moving into the high season and leaving this low-revenue quarter behind us.

Even though we did have a seasonal low net revenue, we did achieve the highest quarterly net revenue for our propane units, our R290 units, than we have before, on our ES Energy Save brand, that is. Here we saw increased sales both on the residential side and on the commercial property side.

On the commercial property side, of course, we haven't had an updated refrigerant in a long time, this is particular success on the sales side. During the quarter, also, we did change the company name to ES Group, which is the name of this company now.

Yibo mentioned a bit about the reasons for that before. We want to specify ES Energy Save as our own brand and separate it from other customer brands.

During the quarter, we also started a spare part partnership with JS Energi to cover the Nordic regions and to increase aftermarket and sales availability in the Nordic markets.

All right. Look at the future, moving forward now.

EU published the EU Electrification Action Plan that proves electrification will continue to have a very high importancy for the European future. It basically said that EU is being very dependent on the fossil fuels today, and EU need to build more internal resilience toward the dependency on external factors, especially during quarter two.

We had a very turbulent situation in the global world with the Iranian war that fueled up the different energy prices. By the electrification plan, it addresses the importance to electrify Europe and being self-dependent to create resilience.

What is interesting here is the position of heat pump industry and ES Energy Save's position in that industry. What the plan says is by 2030, or EU has identified two main three main bottlenecks when it comes to further develop the heat pumps, to build up the resilience.

Number one is primary initial installation and purchase cost for the heat pumps. Secondly is the running cost of heat pumps.

Thirdly is the installation, lack of installers. All the three topics are being handled in the EU Electrification Action Plan.

Number one, installation costs, EU is promoting, encouraging these member countries to reduce the taxes or increase subsidies for the initial purchases of deploying more heat pumps. The plan is to grow from 2.5 million heat pumps to 4 million heat pump a year.

The second one, when it comes to running costs, the ratio between the gas prices toward electricity prices is going to be kept within 2.5. What does that mean?

If we convert the prices into heating efficiency, to say, 1 1 kWh of fossil fuel costs 1 unit of currency, meanwhile 1 1 kW, when it's come from electricity, 1 kWh will cost 2.5 kWh units of currency. This means that if we also add the heat pumps industry's efficiency to that, that means when converting 4 kg for a ES Energy Save-branded heat pumps, the efficiency, the COP value, is top level at 4.0, meaning getting 4 kWh of heating will cost 2 unit of currency.

Getting 4 kWh of heating power in fossil fuel will cost 4. This here we have a gap of 1.5, which means that this creates the possibility for the heat pumps to be more cost-efficient also on the running costs.

The last part is the installation bottleneck that is on to train more installers when it's come to heat pump competence. Everything will also be cleared out later when Europeans publish the different sub-segments on this action plan.

We welcome the plan for the Electrification Action Plan as a part of important role for the rolling of even more heat pumps to the European market and build the resilience. We also had the capital market on directed share, as I said before, and we will further promote and develop our business in OEM/white-label segment as well as our commercial business segment.

During second quarter, we accelerated our training programs toward the different distributors in our network and the installers. We had a good training on both hardware and also on the digital solutions.

We're eliminating or mitigating the different bottlenecks of deploying more heat pumps to the market. Number one is the cost of project management, more quicken to address the different scenarios when it comes to that and the different products needed for the different heating needs.

Secondly, it's also that we have trained the distributors and installers with ES heat pumps to quicken the installations. By quickening the installation, we actually mean that the same installer has more time to deploy more heat pumps on the market rather than compared to the competitors' efficiency when it comes to efficient installations.

This strengthens our position in the value chain. Now as we are moving into the heating season, if the plan orders materialize, we target to approach break-even for the full year of 2026.

Very good. With that, Yibo, we will now end the presentation and move into the Q&A part of the presentation.

Hi, Helena and Yibo. Just a couple of questions from me.

You said that you expect your margins to improve, and well, commercial is already around 50% of propane. The older refrigerant stock is basically cleared.

Can you give any sort of indication of where the gross margin could land? Does the propane range carry a higher margin?

The units it's replacing, just maybe give us some flavor on that.

I think the largest variation we will see on the gross margins is between the commercial segment and the residential segment. The residential segment will likely remain similar margins to the margins that we have had historically on villa units, but on the commercial side, we can see higher margins likely.

This is the historical pattern at least, and we believe that will continue. As always, I would say the margins that we have had before around 30% is a reasonable level, but we are affected, of course, if there is a lot of sales that we have direct deliveries for, that usually lowers gross margins, but increase overall turnover.

Therefore, it's hard to guide towards we will be around 30%, because we will always choose higher turnover, and that might affect margins a bit, but of course, contribute more to EBIT. I hope that's enough of an answer.

It's not precisely, but that's our aim.

Yes, thank you. That was very clear.

In your report, you guided to reach break-even for the full year, and so if we just look at the first half of the year, EBIT is around -17 million.

This

is quite a large swing into H2. Could you maybe just help us on this bridge?

How much is maybe from OEM/white-label volume versus maybe cost improvements, and well, yeah, just give us more flavor on this.

Both will contribute, increased revenue and cost cuts, but mainly it will come from revenue in the heating season. That will be the main contributor to us approaching break-even for the full year.

I think over the past 8 months, we can see stronger and stronger tendencies that the traditional how to say? Seasonality is coming back.

This will of course affect our planning, and we are seeing that with our business model, the bigger volume will come with heating season. After summer period, when people are entering the winter, let us remember that 2026, we started with a record-low temperature, record-long winter in Europe.

Now when people are coming back, people need to secure their helps and facilities, upgrading those with the heat pumps. Especially now with the Electrification Action Plan published, there are more and more, how do you say?

Incentive to switching to a heat pump from traditional fossil fuels.

We can also add that this is very true for the residential segment, right? For the commercial segment, it's very possible that we won't see that kind of tendency to increase seasonal variations, but a more even pattern on that side.

Yeah.

These orders that you're expecting in the second half, can you tell us maybe how much is actually contracted versus maybe just a forecast that you're leaning on? Essentially, I'm just asking, how confident are you that H2 will pick up?

I understand, yeah. We expressed this in the way that it's planned orders.

We can't and we don't really comment on our order stock, and we don't comment on specific customers, but we do feel pretty confident that if the orders that we do have planned today materialize, then we will be able to approach break-even for the full year.

Okay. Thank you.

That was all from my end.

Great. Thank you very much, Lara.

Yes, thank you. Good morning.

My first one is more of a market dynamic question. We see quite large differences in how different countries in Europe are growing when it comes to heat pump volumes.

Given the fact that the last couple of years you've been on your own, but especially with partnerships trying to establish a presence also outside the Nordics, I'm just curious to understand a little bit how you feel positioned in key markets, such as Germany now, for example, which are growing very strongly when we look at overall volumes.

To answer that, we really need to separate the OEM/white-label customers, where we know which markets those customers are present in, but we can reach markets via those customers, but we don't have the full sight into their sales. Then on the ES Energy Save sales side, especially with the propane units now, we are noticing that we are entering markets that have previously been small for us, or nonexistent even.

Sales on that side are stronger than before on the Spanish market, for instance, on the German market.

Yes.

Am I missing some thing?

Italian market.

On the Italian market, yes.

Very increasing. This this is also partly in the reason we are increasing our our trainees to the customers and distributor in those countries.

We all we do see a strong momentum, also a a strong interest for our brand. As ES Energy Save, a smaller brand with limited resource, we try to focus our resource where the the trainees, or where we get the maximum effect.

As a new brand, new smaller brand, to compete with the bigger brands, it will take us some more time to to or it will take us longer time compared to already established brands to get a to get a presence. When we do that, we're quite confident with our unique selling points, with our our digital tools, with our our very good heat pumps.

We're very confident that we will see the to develop those market furtherly.

Yeah.

Understood. Also just a follow-up on Lara's question earlier about the orders towards OEM and so on.

You briefly talked about this a little bit, Helena, now, but is there any way you can kind of keep track of their performance either through distribution channels or kind of market data that you have access, or i.e., that you have a bit of a sense at least that your customers are selling a certain number of volumes and that you will therefore be prepared for an upcoming order, for example?

Of course we have a very close collaboration with our customers and receive a lot of information from them that we can't really forward. We know of course approximately what markets they are present in, and those are also, I would say overall, the same markets that we aim to grow in.

That is Germany, the UK, and Italy also, yeah.

Finally, just a bit of a reminder perhaps, but when it comes to the heat pumps just function, what we talked about now in some other cases, during the summer with heat waves and so on, of course also the European Heat Pump Association has tried to advocate for the heat pump's dual function use, that it can also serve as a cooling technology. Can you just remind us how you are positioned technology-wise in the dual functionality of a heat pump?

Yeah. Our heat pump are available with our portfolio for also the cooling.

We have heat pump, we have fan coils, we have a competitive portfolio. This is also where we can see an increase from, for example, the Italian market that we are delivering more and more heat pumps to those markets.

That has been clear in product development for a long time that it will be a dual requirement. In some countries even an actual requirement, I think, for subsidies and so.

Yes.

We're

seeing an increased demand in those units, we need to be better prepared also for the coming years to also be more communicative in this, also in the cooling modes for heat pump products.

That is clear. Thank you.

Thank you.

Thank you very much, Karl.

Thank you very much, and we do have a couple of written questions here. Let's see.

Where to start here? This question we have touched on, but it could be a good thing to clarify.

The question is, the report notes that second quarter revenue is low because people buy fewer heat pumps during warmer months. What are you doing to make your sales more stable during the spring and summer?

I think we mentioned this a bit regarding our different business segments, that we have had a low revenue for a while now on the commercial side, which stems a lot from product updates. We haven't shifted the refrigerant as frequently for the commercial products.

Therefore, just increasing that sales side, which we aim to and now have a great possibility to do, will stabilize sales throughout the year.

Also increasing on our commercial segment to balance that in more, because commercial side is less volatile when it comes to seasonality.

Yeah. Great.

Moving on. The second question I have here is regarding the company name.

The question is, why did you change the company name from ES Energy Save Holding to ES Group? Then there is also a question, how does this help you grow or find new business partners?

Obviously not the name change on its own will, but the clarification has some form of value actually in the market.

Imagine like Volvo Group. Maybe it sounds strange when we are small, ES Energy Save or ES Group compared to Volvo Group.

I've been in Volvo for many years, where Volvo Group is the platform. They have the different truck brands.

The same we are going to do with ES Group. ES Group lays the foundation, the base for the platform we have, the same digital tools, the same product technology platform, and that product platform can be adopted, customized to different brands.

By changing the name ES Group, it helps us to go to the customers and secure the business alliances together with them to make sure that we enable our product platform for their brand, unique design for their brand. Meanwhile, we can develop ES Energy Save as a separate brand name.

We can use that product to go to the niches that fit for ES Energy Save brand, and the communication will not be mixed. This we see as an enabler to accelerate our businesses even more.

Exactly. Exactly.

Next question is a bit hard to answer. Can you tell us something about your order intake?

We do not comment on our order stock or on specific orders unless we have to for communicative reasons. What we can say about that is really to repeat what we mentioned about turnover for the full year, that the planned orders that we have, if they materialize, then we will be able to approach break-even for the full year of 2026.

Yeah. If you don't want to add something, I will

No, that perfect

fine. Yeah.

Next question here is, you just teamed up with Enerad to work on propane heat pumps for large commercial buildings. When do you expect this new tech partnership to start bringing in sales?

Is the question. The Enerad collaboration was communicated after the end of this report, the beginning of this current third quarter, this collaboration.

We have a collaboration with Enerad where we are going to a strategic partnership on mutual part, where our portfolio can be a complementary to their portfolio, and their technology can be complements to our portfolio. We really are entering the best of both.

We expect that we are going to further strengthen with different startup of the collaboration now in this. We expect that we are going to have some business on mutual side on during this year and next year.

Moving on then. Some questions we have touched, but we will of course take the possibility to clarify anything.

Question is, analysts predicts the company could return to a positive operating profit in the second half of the year. The question is here, what needs to happen for the company to finally become profitable?

We need to further strengthen our sales capabilities. We need to be better even more as the market has been recovering the past two years.

We need to be further more into the market and develop the business in all the three segment we are in: on the ES brand on the residential part, on the ES brand on the commercial part, but also very important is we success in our investment here when it comes to the OEM/white-label segment.

Yes, especially since we have a large volume potential in that segment.

Yes, of course.

All right. Next question is, you say that you are on track to break-even for 2026.

Yes, this is the correct. Does this mean you don't have to raise any more money anytime soon?

This, of course, is a financing board decision. We believe that with the money we have brought in now, we will be able to launch and to kick off sales on the OEM/white-label sales side, and also on the commercial side for ES Energy Save.

We believe that that will be sufficient to make all the sales initiatives happen that we want to. However, if there is a possibility that could kick off our sales even more, we should never exclude it.

We believe that this intake of capital will cover the plans and the sales initiatives that we wish to make during the following year. Yeah.

Yes, next question. Do you believe that the turnover for commercial products now will get a significant increase during 2026?

Yes. We have been lacking of the R290 propane unit until this year, and now we have introduced it to the market.

It's been very well received by the market and also the installations. With our customers we talked to, they are very happy, they have said that they have been waiting for this for years.

Now as we are ramping up the production pace of those unit, we expect we're going to grow that business quite furtherly during 2026.

This is also a very interesting question. It's really two questions, and it's about what will ES do to increase sales on ES brand, and what will we do to find new white-label customers?

It's it's

we need to to further develop what we are doing. Over the past two, three years, we have signed several new distributor in new countries where our brand is is is or several new to new market for us.

When we enter the new market, it takes some time initially. It takes most often longer.

It doesn't well, it doesn't just pop up. We have to build trust among our distribution network.

We need to make sure that they want to promote our brand to their installers. We want to make sure that their installer promote our brand to the customer that's that's knocked on their door.

This investment as a small brand, it will it takes slightly longer time than compared to a big, already established brand where we need to fully even more focus on our unique selling point, what is ES Energy Save bringing value. We need to be better in communicating our digital values that we are all offering to the market.

All that activity will in will will will create a momentum later, like we already see starting this year,

momentum

of increased sales of the ES. I think we can do even more here on on this.

We need to to put into consideration of the seasonality. We need to to to invest more, or we need to more active in the different training activity, commercial activities, and build the trust over the on the first half-year, and we expect the the the fruits to to be be, how to say, to be ripe the second half-year.

On on the OEM/white-label, we just initiated this this branch change over quarter one, in in quarter one. I think we're we're actively communicating the different shifts of the different meaning of ES brand, ES Group, and also ES Energy Save.

We think that that we're already on pace on that with according to our plans. I think we will give with some more time, we'll see the effect of it.

Right, and you did speak a lot in the presentation also about the training program and how this is a strength. This is of course the meaning of this also.

Let's see now. This is a bit of a specific question regarding the capital shares issue and the whole full package of that really.

The question is, what does the placement of existing shares amounting to around 4.4 million SEK mean in the capital placement that was made together with the directed shares issue that we made? This is really our partner Amitime since many years are entering into the stock market in their home country, and with that, they are no longer allowed to own stocks in a Swedish company, and therefore, the ownership of Amitime will be phased out and has been sold then.

This is part of the full sales of shares that was made recently. The partnership, however, is not affected by this.

We still have our joint venture together with the European factory, and collaboration is strong as it ever has been. This is merely something that has to be done, so that's it.

Following the rule

for them to get the stock listed in China.

That is the explanation of that post, a bit unclear perhaps. We have a question about break-even once again here.

When we talk about break-even for the year, are you talking about EBIT or net profit? Mainly we are talking about EBIT in that aspect, that we will have a possibility to approach break-even for the full year of 2026.

Yes, let's see here. Next question: have you noticed a shift in consumer sentiment towards heating heat pumps between now and the beginning of the year?

Has there been a shift in demand perhaps then during the year? Now, some markets have developed strongly during the first half of the year.

One good example is Denmark, right?

Yes.

Denmark, I'm not sure if I remember that figure now, but I think Denmark increased by

50% in Danish market.

In the second quarter, or in the first? In the second quarter.

In the second quarter.

That is a market that we have also seen affect in our figures, in sales figures, and there are other examples also, of course, of markets increasing. We do expect to see main increases during the second last quarters of the year, the final quarters.

I think we had a very strong first quarter this year compared to the previous year last last year. That is partly because of the the the cold the cold wintertime in this year.

Meanwhile, when we move to second quarter, we are still very increasing and growing our business compared to to the second quarter last year. When the heating comes, when they see heating comes, and also when when when people know that there will be changed subsidy on on the European level, it will tendence to more that people wait to the second half-year for for the heat pumps.

Right. Very good.

Next question also regarding the Enerad collaboration. The question is, will the two companies sell the other company's products?

I believe they will promote each other's products. Is that correct?

They will promote or we will promote each other's products, but we can also enable that we can sell each other's products. We are open for both, our partnership can enable both part of collaborations.

Very good. Let's see now.

Here we have a question about gross margins in the second half. How does your gross margins look in the second half of the year?

Is it the same low levels as in second quarter? I think we spoke to Lara a bit about this.

The margins are affected by promotions in this quarter a lot. We don't expect those levels to persist during the year.

With that being said, a high level of direct deliveries, high level of increased OEM sales have a possibility to affect margins to push margins down a bit. Then with the positive side that we will increase revenue, and thereby, because there is such a volume potential on that side of the sales.

Therefore, in a sales situation like that, we might choose promoting the higher volumes, since they have a contribution to EBIT in a whole other way than a smaller business with a higher gross margin, of course. Yeah.

What possibly is also worth to mention is, as a small brand, we are actually populating more ES-branded heat pumps to the markets, meaning that we need to build a presence. When we build a presence, we start with higher promotion levels in order to have people more talk about our brand, building awareness.

This we have been doing, and we expect the market is going to, when the heating season start, we expect the market margin to recover.

Absolutely. Absolutely.

Let's see here. A couple more questions.

We are okay on time, yes. Okay.

I will take a few more questions. From the beginning of 2027, heat pumps with older refrigerants will be banned.

How does this affect your sales, and how does this affect what you have in stock?

We actually see it very positive that the the R290 the R290 will be the the refrigerant that's upcoming. This is due to several reasons.

This help us to to to actually to to make build economic scales, concentrated on one technology product platform, on R290. Let's remember ES has sold more than 10,000 R290 heat pumps in in both ES brand, combined together with OEM, our different customer in OEM/white-label brand.

This builds us a very strong This creates a very good reputation for the ES Group, being able to to open that business forward. When it comes to the other other refrigerants, I think the European definition is placing those on the market, meaning meaning meaning import importing ban by end of or start of 1st of January next year, but also produce those unit for the European markets.

We do see that several of our customers are still demanding for the for the R290 or for the older refrigerant units, meanwhile we are increasing, as we can see from the number of this year, we are increasing the R290 to the to the have a I think Helena said that we have a record high on on on the highest the highest R290 production in the market. We will see that there will be a shift from the the the older refrigerants.

I think the the final, the ultimate ban for not being able to sell this, this will be 2030, and I believe that we have a healthy stock level, though so we can both support the customer who still demand it, but also a good level so we can accelerate further deployment of R290 to the new market where entered.

Very good. I'm going to take two more questions then.

Approach, what does this interval mean? I believe this points to the way we phrase ourselves about the break-even, that we expect to be able to approach break-even for the full year of 2026, given that planned orders materialize.

The question is, is it to have over 0 million in EBIT for the second half of the year, or being 1 to 2 million close to break-even? The reason that we are not more specific about this is that we can't see exactly how these orders will fall out exactly in time.

We know roughly, and therefore, we don't want to be more specific than that. There has no value to anyone really.

We do think that we have the chance to reach the goal full out, but we can't be more specific than saying that we expect to approach the goal of break-even. I hope that's explanation is good enough.

This will be the last question. The Electrification Action Plan and the NZIA seems to be promoting a European production over production in China and in Asia, and this is for the what's it called?

The Europe first or something expression-wise.

The Net-Zero Industry Act. Yes, Industrial Accelerating Act.

Yes, exactly.

That's

correct. The question is, how does this affect ES Group since you partly produce in China?

We actually welcome the European initiative with the different programs to have European production. ES has invested in a European manufacturing, and this goes in line with our strategy, in Europe for Europe, that we are moving production to Europe.

We today already produce some of our heat pump models in Europe, and we welcome that because that shortens the planning time, that shortens the risk, that shortens the business risk, and we do believe that it will create a more agile planning and business environment for us going ahead.

Great. Very good.

With that, thank you all for listening in. We will see you once again in 3 months approximately if you wish.

Thank you all for all the good questions we have today.

Absolutely, a lot of good questions today.

Thank you.