ZhongDe Waste Technology AG

Earnings Release • Mar 18, 2008

News Details

Corporate | 18 March 2008 14:01

ZhongDe Waste Technology AG releases preliminary results for fiscal year 2007: net profit more than doubled – order intake increased by 90% to €44.4 million

ZhongDe Waste Technology AG / Preliminary Results

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Press Release

ZhongDe Waste Technology AG releases preliminary results for fiscal year
2007: net profit more than doubled – order intake increased by 90% to €44.4
million

Hamburg, 18 March 2007 – ZhongDe Waste Technology AG ('the Company', Ticker
symbol'ZEF') today announced, not yet audited, preliminary results for the
fiscal year 2007.

Revenues:

Sales revenues grew strongly to €31.1 million in 2007, an increase of 64%
compared to 2006.

EBITDA:

EBITDA rose by 57% in 2007 to €18.7 million compared to €11.9 million in
2006.

Net result:

The net profit increased to €19.1 million in 2007, compared with €8.0
million in 2006, thus more than doubling the profit for the period.

Order intake and order backlog:

Total order intake for the year 2007 rose to €44.4 million, a substantial
rise compared to 2006 at €23.4 million. The order backlog as at 31 December
2007 amounted to €20.5 million, exceeding the figure for 2006 by € 12.9
million, or 171%.

Earnings per share:

Earnings per share amounted to €1.47 in 2007 compared to €0.62 in 2006.

The company’s CEO Mr. Zefeng Chen states:'We are immensely pleased with our
progress in 2007. The figures reflect our strong positioning in a buoyant
market environment. Our financial result reflects the surge in interest for
advanced incinerator technology due to the Chinese government’s commitment
to environmental policies. We expect our business environment to remain
strong and the company is set to make further progress over 2008.'

For FY 2008 the management expects revenues to be above €50 million with a
net profit margin of above 45%. With the newly signed and expected
contribution of revenue of the large size equipment selling project (Datong
project) and the further strategic objective to focus on larger projects,
the gross margin of the company is expected to converge slightly lower to
55%.

Following the approval of the Supervisory Board the audited financial
results for 2007 will be published on 29 April 2008.

About ZhongDe Group:

ZhongDe Group designs, manufactures and installs pyrolytic, grate and
rotary kiln waste incinerators for the disposal of solid medical, municipal
and industrial (including hazardous) waste. Since 1996, ZhongDe Group has
installed approximately 180 waste incinerators in about 13 provinces, and
more than 120 waste incinerators in the last three financial years alone.
Its waste incinerators are principally constructed for operators of medical
disposal centres in the hospital and healthcare industry, as well as for
small and midsized Chinese cities in developed areas of the People’s
Republic of China. ZhongDe Group is one of the leading suppliers of small
and midsized solid waste incinerators in China, supplying state-of-the-art
products.

This document constitutes neither an offer to sell nor a solicitation to
buy securities of ZhongDe Waste Technology AG. The securities have already
been sold.

This document is not an offer of securities for sale in the United States
of America. Securities may not be offered or sold in the United States of
America absent registration or an exemption from registration under the
U.S. Securities Act of 1933, as amended. The shares in ZhongDe Waste
Technology AG have not been and will not be registered under the U.S.
Securities Act of 1933, as amended, and are not being and will not be
offered or sold in the United States of America.

This document is directed at and/or for distribution in the U.K. only to
(i) persons who have professional experience in matters relating to
investments falling within article 19(5) of the Financial Services and
Markets Act 2000 (Financial Promotion) Order 2005 (the 'Order') or (ii)
high net worth entities falling within article 49(2)(a) to (d) of the Order
(all such persons being together referred to as 'relevant persons'). This
document is directed only at relevant persons. Any person who is not a
relevant person should not act or rely on this document or any of its
contents. Any investment or investment activity to which this document
relates is available only to relevant persons and will be engaged in only
with relevant persons.

Contact

Matthias Link
Director
Citigate Dewe Rogerson GmbH
Goethestraße 26-28
60313 Frankfurt am Main
Tel: 0049-69 90 500-150
Fax: 0049-69 90 500-102
E-Mail: matthias.link@citigatedr.de
Internet: www.citigatedr.de

18.03.2008 Financial News transmitted by DGAP

Language: English
Issuer: 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, Hamburg, München, Stuttgart

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