Corporate | 29 August 2008 08:53
ZhongDe Waste Technology AG / Quarter Results
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ZhongDe Waste Technology AG reports continuous growth in Q2 2008
- Q2 revenues increased by 16% yoy to € 8.9 million
- Net profit climbed to € 5.2 million, an advance of 11% yoy
- Earnings per share increased by 11% yoy to € 0.40 per share
- Continued strategic focus on municipal solid waste incinerators of
larger scales
Hamburg, 29 August 2008 – ZhongDe Waste Technology AG (‘the Company’) today
announced its Q2 2008 results which continue to reflect the Company’s
growth profile.
Company revenues in the second quarter of 2008 grew by € 1.2 million to €
8.9 million representing an increase of 16% versus the same period in 2007.
Growth was driven primarily by a rise in municipal incinerator sales. A
total of three municipal solid waste incinerators were sold in Q2 2008.
Revenues in municipal waste incinerator sales increased from € 5.8 million
in Q2 2007 to € 8.9 million in Q2 2008. This constitutes a rise of 53%,
despite selling the same number of units as in Q2 2007 due to higher
average unit selling prices.
The upward trend in the municipal solid waste incinerator segment
continues, leading to a rise in operating results in the second quarter of
2008. As a result gross profits increased from € 5.3 million in Q2 2007 to
€ 6.1 million in Q2 2008. The gross profit margin remained stable at 69%,
outperforming expectations as the Company previously anticipated slight
margins convergence due to the strategic focus on larger incinerators. The
net profit increased from € 4.7 million in Q2 2007 to € 5.2 million in Q2
2008, an increase of 11%, with the underlying net profit margin decreasing
from 61% in Q2 2007 to 58% in Q2 2008.
During the period under review the Company received orders for contracts
worth € 6.5 million compared to € 10.8 million in the same period last
year. The slowdown was due to the phasing of the order backlog which stands
at € 39.5 million at the end of the quarter, compared to € 8.4 million in
2007 for the same period. Furthermore, order intake was affected by delays
of government involvement in the negotiating process of new orders in the
run up to the Olympic Games. The negotiation process of these projects is
expected to resume rapidly following the end of the Olympic Games.
Furthermore, the Company achieved a solid rise in EPS which amounted to €
0.40 in Q2 2008,
up from € 0.36 in Q2 2007.
The Company’s net cash position as at 30 June 2008 was € 94.7 million
compared to € 83.8 million on 31 December 2007. The Company retained most
of the funding from IPO proceeds and is planning to use these funds to
establish the Beijing plant and support various BOT projects scheduled to
start in the second half of 2008.
During the period under review, as well as successfully consolidating its
strong performance in the small and midsize incinerator market, the Company
made important progress in the market for large-scale incinerators with
power generation. ZhongDe Group continues to consider its human resources
strategy as a pivotal factor in expanding business in this huge market.
The establishment of a postdoctoral research Chair within the Company in
cooperation with a leading body in environmental protection will serve as
an important stepping stone for the road ahead, especially in technology
research and development. The Company anticipates a variety of scientific
breakthroughs in R&D, which will strengthen its technological advantage.
CEO Zefeng Chen comments: 'We are pleased that our Q2 2008 results reflect
the continuous progress we make on our growth path step by step. They also
highlight the push to strategically focus more strongly on larger municipal
incinerators and gain economies of scale through centralised order
processing. Our drive to strengthen our sales and marketing resources in
combination with the huge potential offered by the Chinese waste
incineration market gives us every confidence that shareholders will enjoy
pleasing results by the end of 2008. We stick to our initial estimation
that revenues for the full financial year 2008 are expected to amount to €
50 million with a net profit margin above 45%.'
Key Financial Highlights
Key figures in k€ Q2 2008 Q2 2007 Change H1 2008 H1 2007 Change
Order intake 6.480 10.832 -40% 43.847 18.945 +131%
Order backlog 39.544 8.356 +373% 39.544 8.356 +373%
Revenues 8.881 7.658 +16% 20.092 15.017 +34%
Gross profit 6.109 5.261 +16% 13.853 10.057 +38%
Gross profit 69% 69% - 69% 67% -
margin
Cost of sales 2.772 2.397 +16% 6.239 4.960 +26%
EBITDA 4.493 4.643 -3% 10.975 8.788 +25%
EBITDA margin 51% 61% - 55% 59% -
EBIT 4.436 4.631 -4% 10.862 8.764 +24%
EBIT margin 50% 60% - 54% 58% -
Net profit 5.195 4.697 +11% 12.222 8.809 +39%
Net profit margin 58% 61% - 61% 59% -
Earnings per share 0.40 0.36 +11% 0.94 0.68 +38%
Amounts in k¤ Q1 2008 Q1 2007 Change %
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.
Contact
Matthias Link
Managing 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
29.08.2008 Financial News transmitted by DGAP
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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
End of News DGAP News-Service
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