ZhongDe Waste Technology AG

Earnings Release • Nov 16, 2009

News Details

Ad-hoc | 16 November 2009 18:25

ZhongDe Waste Technology AG: Preliminary figures for the first nine months reflect difficult market environment in small- and medium-size incinerators segment

ZhongDe Waste Technology AG / Preliminary Results/Quarter Results

16.11.2009

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Hamburg, November 16th, 2009 - According to preliminary IFRS figures
consolidated revenues of ZhongDe Waste Technology AG ('ZhongDe', Ticker
symbol 'ZEF') declined from EUR 15.6 million in Q3 2008 to EUR 6.3 million
in Q3 2009, representing a decrease of 60% year-on-year，and revenues
declined to EUR 24.7 million in the first 9 months of 2009, representing a
decrease of 31% year-on-year (9M 2008: EUR 35.7 million). The decrease was
caused primarily by the number of units sold in small- and medium-size
incinerators segment. Some municipal authorities in China postponed their
purchase plans for small- and medium-size incinerators as the international
financial crisis reduced local tax incomes. No small- and medium-size
municipal and medical waste incinerators were sold during the period under
review (Q3 2009).

Gross profit dropped to EUR 2 million (Q3 2008: EUR 7.9 million) and net
profit decreased to EUR 0.4 million in Q3 2009 (Q3 2008: EUR 6.5 million).
The fall in profit and margin was mainly due to the characteristics of
large-size projects. In general, an EPC (Engineering, Procurement and
Construction) project has much higher revenues, higher cost of sales and a
lower margin contribution. Under the circumstance of the global economic
recession, the demand for large-size 'waste-to-energy' projects is
increasing because of the economy-stimulating policies of the Chinese
government. The Company has reacted on that market change by shifting its
strategic focus to the market segment of the large-size EPC projects, such
as the projects in Datong，Zhaodong and Zhucheng. Although the margin
percentage of EPC projects is lower than that of incinerators, their much
larger revenue will still bring attractive profit in the coming quarters.

During the period under review the Company received orders for contracts
worth EUR 24 million, compared with EUR 8.5 million in the same period last
year, mainly due to the new Zhaodong EPC project which amounts EUR 23
million. This is the third largest EPC project after Datong and Zhucheng.

ZhongDe group will be publishing final figures on the third quarter
performance in its interim report on November 30, 2009.

ISIN: DE000ZDWT018
WKN: ZDWT01
Listing: Regulated Market / Prime Standard; Frankfurt Stock Exchange
Registered office: Germany

William Jiuhua Wang
Director & CFO
ZhongDe Waste Technology AG
Phone: +86 (10) 885 98 010
E-Mail: william.jw@zhongdetech.com

Li Zhong (Linda)
Investor Relations Manager
Stadthausbrücke 1-3
20355 Hamburg
Tel: +49 40 37644 756
Fax: +49 40 37644 500
E-Mail: li.zhong@zhongde-ag.de

16.11.2009 Financial News distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de

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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: cornelia.dieker@zhongdetech.de
Internet: www.zhongdetech.de
ISIN: DE000ZDWT018
WKN: ZDWT01
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Hamburg, Stuttgart

End of News DGAP News-Service

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