Earnings Release • Apr 30, 2010
Earnings Release
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Corporate | 30 April 2010 08:43
ZhongDe Waste Technology AG: Strong order backlog after strategic shift
ZhongDe Waste Technology AG / Final Results
30.04.2010 08:43
Dissemination of a Corporate News, transmitted by
DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.
Hamburg, 30th April 2010 - The fiscal year 2009 of ZhongDe Waste Technology
AG ('ZhongDe', 'the Company', Ticker symbol 'ZEF') was influenced by the
international financial crisis. According to the financial year 2009
results, revenues decreased by 18.8% year-on-year to EUR 40.2 million in
2009. Earnings before interest and tax (EBIT) decreased by 62.4% to EUR 8.0
million while net profit went down by 75.3% to EUR 5.7 million. Order
intake increased by 29.4% to EUR 109.3 million. The order backlog as of 31
December 2009 amounted to EUR 151.2 million and exceeds the previous year
figure significantly by EUR 69.5 million, or 85.1%.
The fourth quarter of 2009 has contributed considerably to the financial
performance of ZhongDe Group: Revenues reached EUR 15.5 million and EBIT
amounted to EUR 3.3 million in the last quarter of the year, contributing
to the full year results 39% of revenues and 41% of EBIT. The Q4 result was
mainly driven by the revenues of Zhoukou BOT project and the revenues of
the Datong project.
While the plans for small to medium-sized medical and municipal waste
incinerators were postponed by local authorities in the last year due to
reduced tax income as a consequence of the global economic crisis, the EPC
and BOT large-sized waste-to-energy projects became the two main business
segments, which accounted for 72% revenues of ZhongDe Group in 2009. This
is the result of ZhongDe's quick reaction to the changing market by
shifting its strategic focus to the market segment of the large-sized
waste-to-energy projects.
The first large-sized waste-to-energy project of ZhongDe - the Datong EPC
project - was completed successfully at the end of 2009. The waste
incineration plant with electricity generation is operating smoothly and
the owner of Datong project is very satisfied with win-win cooperation with
ZhongDe Group. In 2009, the remaining revenues of EUR 24 million of the
Datong EPC project (total project volume: EUR 33 million) were recognized.
The Datong EPC project is a critical milestone for ZhongDe in the fields of
technology, project management, contractual capacity, business strategy and
profitability. The gross profit margin of the Datong project amounted to
25%.
The Zhoukou BOT project was completed by 24% in 2009 and EUR 3 million were
recognized as revenues in accordance with percentage-of-completion method
of the new International Financial Reporting Standards (IFRS) for BOT
projects, which was enacted in Germany in 2009. Meanwhile the Feicheng BOT
project was completed by 49% and EUR 1.5 million were recognised as
revenues in 2009.
The cash position improved to EUR 111.9 million as of 31 December 2009
(2008: EUR 105.7 million). With the strong cash position and an equity
ratio of 88% (31 December 2008: 91%) ZhongDe Group maintains its
flexibility in a difficult market environment, as result of the
international financial and economic crisis. Furthermore, the favourable
liquidity situation will help ZhongDe to accelerate the stride in BOT and
EPC large-sized waste-to-energy projects market by being able to finance
the construction of further facilities.
The order backlog of EUR 151.2 million (31 December 2008: EUR 81.7 million)
includes three EPC projects (Zhucheng, Zhaodong and Dingzhou) and four BOT
projects (Zhoukou, Feicheng, Xianning and Kunming). The rapid development
of the order position not only reflects the successful strategy transition
in 2009, but also indicates an attractive increase in revenues and net
profits in the coming years.
CEO Mr. Zefeng Chen comments: 'We are satisfied with what we achieved in
2009. Our financial results reflect the strong demand for large
waste-to-energy plants in China. ZhongDe Group's strategy transition has
proved to be successful. The Datong EPC project was finished successfully
in 2009 and is operating smoothly now. It is a strategic milestone of the
ZhongDe Group's development and will accelerate our stride in the
large-scale waste-to-energy market. Although we realize that there are
still risks and challenges in the future, our management team is confident
that we can continue taking advantage of the huge market potential in the
Chinese and international waste-to-energy market to create value for our
shareholders.'
About ZhongDe Group
ZhongDe Group designs, manufactures and installs pyrolytic, grate and
rotary kiln waste incinerators for the disposal of solid municipal,
industrial (including hazardous) and medical waste, as well as complete
sets of incineration plants with electricity generation. Since 1996,
ZhongDe Group has installed approximately 200 waste incinerators in about
13 provinces and more than 80 waste incinerators in the last three
financial years alone. Its waste incinerators are principally constructed
for small and midsized Chinese cities in developed areas of the People's
Republic of China, as well as for operators of medical disposal centres in
the hospital and healthcare industry. ZhongDe Group is one of the leading
suppliers of state-of-the-art solid waste incinerators in China. ZhongDe
Group also acts as one of the leading players of large-size Waste-to-Energy
industry in China.
Contact
William Jiuhua Wang
Executive Director & CFO
ZhongDe Waste Technology AG
Tel: +86 (10) 885 98 010
E-Mail: [email protected]
Li Zhong (Linda)
Investor Relations Manager
Stadthausbrücke 1-3
20355 Hamburg
Tel: +49 40 37644 756
Fax: +49 40 37644 500
E-Mail: [email protected]
30.04.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de
Language: English
Company: ZhongDe Waste Technology AG
Stadthausbrücke 1-3
20355 Hamburg
Deutschland
Phone: +49 40 37644 745
Fax: +49 40 37644 500
E-mail: [email protected]
Internet: www.zhongdetech.de
ISIN: DE000ZDWT018
WKN: ZDWT01
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Hamburg, Stuttgart
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