ZhongDe Waste Technology AG

Earnings Release • Aug 28, 2015

News Details

Corporate | 28 August 2015 08:14

ZhongDe Waste Technology AG expects improved project progress for the second half of 2015

ZhongDe Waste Technology AG / Key word(s): Half Year Results

2015-08-28 / 08:14

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Results H1 2015

ZhongDe Waste Technology AG expects improved project progress for the second half of 2015

– Strong revenue increase of 77.6 per cent

– EBIT went up from -2.8 million Euros to -2.7 million Euros

– Further improvement during the second half of the year expected

Frankfurt, 28 August 2015 – Thanks to a strong first quarter 2015, ZhongDe Waste Technology AG (“ZhongDe”) recorded a significant year-on-year revenue increase by 77.6 per cent to a total of 8.1 million Euros (H1 2014: 4.6 million Euros) in the first half-year 2015. Thereby, the BOT projects contributed the largest part with revenues of 7.4 million Euros (H1 2014: 2.2 million Euros), while the EPC projects contributed 0.7 million Euros (H1 2014: 2.4 million Euros) to total revenues.

Since the prevailing part of revenues relates to BOT projects, where the zero-profit-method is applied, the stage of completion of these projects has no influence on the gross profit. Therefore, gross profit amounted to -1.1 million Euros (H1 2014: 0.2 million Euros) despite the strong revenue increase. The gross profit decrease was mainly due to the fact that inventories relating to the incinerator segment amounting to 0.8 million Euros had to be written off in the second quarter of 2015.

EBIT went slightly up to -2.7 million Euros (H1 2014: -2.8 million Euros). The EBIT margin increased by 27 percentage points to -34 per cent (H1 2014: -61 per cent). In total, the group’s net result improved to -4.2 million Euros in the first half of 2015 (H1 2014: -4.4 million Euros).

As at 30 June 2015, ZhongDe’s equity position went up by 4.9 per cent to 118.4 million Euros (31 December 2014: 112.9 million Euros). The equity ratio amounted to 44.5 per cent (31 December 2014: 45.3 per cent).

Cash and cash equivalents amounted to 86.4 million Euros as at 30 June 2015, a decrease of 0.9 per cent compared to 87.2 million Euros as at 31 December 2014. The largest part of the group’s existing funds are planned to be invested in budgeted projects such as the BOT project in Lanzhou and others.

Further improvement in the second half of the year expected

The management expects that the coming quarters in 2015 will still remain a transition period for the company. Nevertheless, revenues and other results are expected to increase compared to the corresponding quarters in 2014. In the second half of 2015 the construction progress of ZhongDe’s EPC projects (Dingzhou, Zhucheng and Wuhai) and BOT projects (Lanzhou etc.) as well as the trial run of the BOT projects (Zhoukou, Xianning and Kunming) are expected to continue to contribute to ZhongDe’s revenues.

After the end of the trial runs the projects will receive the final approval from the referring customers, which marks the completion of the projects. This is expected to take place in 2015 (Zhoukou and Xianning) and in 2016 (Kunming). The EPC-projects in Zhucheng and Dingzhou are still expected to be completed in 2015, although the percentage of completion has been running slowly in the first half of the year. The construction progress of these two EPC projects is planned to be improved in the second half of the year.

Furthermore, the favorable political and economic environment for eco-friendly waste disposal in China and the resulting growing demand for energy-from-waste plants might help to create new orders for ZhongDe, especially as in the near future waste-to-energy plants with lower off-gas emission standard will become M&A targets in China.

Regarding the future development of the company the management board evaluates all strategic opportunities on a regular basis and will do its best to improve ZhongDe’s profitability and to balance the cash position of the group.

Please find the complete H1 report 2015 of ZhongDe Waste Technology AG on the company’s website under the following link:

http://www.zhongde-ag.com/investor_relations/publikationen.html

About ZhongDe Group

ZhongDe Group designs, invests, constructs, finances and operates energy-from-waste plants generating electricity from the incineration of solid municipal and industrial waste. ZhongDe realizes either EPC (Engineering, Procurement and Construction) or BOT (Build, Operate and Transfer) projects, focusing on large-scale plants with waste disposal capacities of around 1,000 tons per day. Since 1996, ZhongDe Group has installed approximately 200 waste incinerators in 13 provinces throughout China. ZhongDe is one of the leading players in the project development and operation of energy-from-waste plants in China.

Contact

ZhongDe Waste Technology AG

William Jiuhua Wang

Executive Director and CFO

E-Mail: william.jw@zhongdetech.com

Ying Sun

Investor Relations

Messeturm 25th floor

Friedrich-Ebert-Anlage 49

60308 Frankfurt am Main

T: +49 69 50956 5655

F: +49 69 50956 5520

E-Mail: ying.sun@zhongde-ag.de

Kirchhoff Consult AG

Nicole Schüttforth

Investor Relations Consultant

T: +49 40 60 91 86 64

F: +49 40 60 91 86 60

E-Mail: nicole.schuettforth@kirchhoff.de

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Language:	English
Company:	ZhongDe Waste Technology AG
	Messeturm 25th floor
	60308 Frankfurt
	Germany
Phone:	+ 49 69 50956 5655
Fax:	+ 49 69 50956 5520
E-mail:	william.jw@163.com,ying.sun@zhongde-ag.de
Internet:	www.zhongde-ag.de
ISIN:	DE000ZDWT018
WKN:	ZDWT01
Listed:	Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart

End of News	DGAP News-Service

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