Corporate | 30 April 2009 09:45
ZhongDe Waste Technology AG / Final Results
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- Revenues increase by 47.8% to EUR 46.0 million in 2008
- Double digit growth rates of earnings
- Net profit margin of 48.8%
- Proposed dividend EUR 0.15 per share
Hamburg, April 30th, 2009 - ZhongDe Waste Technology AG's sales rose
strongly in the year under review. Revenue in 2008 reached EUR 46.0
million, with an increase of 47.8% year-on-year. This revenue growth was a
direct reflection of the Company's shift in emphasis to focus on the rising
demand for municipal waste incinerators which accounted for 75.8% of total
sales volume in 2008.
CEO Mr. Zefeng Chen says: '2008 was a successful year for ZhongDe. Thanks
to the expertise and efficiency of our staff, we have achieved solid
progress in development and innovation of medium- and large-size
waste-to-energy incinerators. Our first large-size project in Datong has
been going on smoothly and has contributed to the profit of 2008. Due to
the Chinese government's environmental policies, our earnings have
continued to increase in a market experiencing huge growth in demand. We
expect our business environment to remain strong and the Company is set to
make further progress over 2009.'
Net profit in 2008 amounted to EUR 22.4 million, an increase of 17.7%
year-on-year. The net profit margin hit 48.8% in 2008, more than the
previous guidance of 45%. Gross profit in 2008 increased substantially by
EUR 5.5 million or 25.2% to EUR 27.1 million. This was reflected in EBITDA,
which rose 10.7% in 2008 to EUR 20.7 million versus EUR 18.7 million in
2007, and EBIT which also rose by 9.8% to EUR 20.4 million. The gross
profit margin remained at a high level of 58.9% in 2008.
The Management Board and the Supervisory Board will propose at the Annual
General Meeting to distribute - for the first time - a dividend of EUR 0.15
per share. The Annual General Meeting is scheduled for 29 June 2009 in
Hamburg.
Order intake and backlog reflect a strong market demand. Total order intake
for the year 2008 rose to EUR 58.8 million, a substantial increase of 32.5%
compared to the 2007 figure of EUR 44.4 million. Municipal waste
incinerators accounted for 49% and large-scale turnkey EPC (engineering,
procurement and construction) contracts accounted for 47% of the order
intake. The company actively develops medium- and large-size
waste-to-energy facilities, and is gradually establishing the concept of
integrating sales and operations. The order backlog as of 31 December 2008
amounted to EUR 28.4 million, exceeding the figure for 2007 amounting to
EUR 20.5 million, or 38.5%.
The Company's core business is the sale of municipal waste incinerators,
where the total sales volume increased by 60.8% year-on-year to EUR 34.9
million. Sales of municipal waste incinerators accounted for 75.8% of total
sales volume in 2008. During the reporting period, the company sold 13
municipal waste incinerators. With the improvement of living standards, the
increase in municipal waste and the growth of environmental protection
awareness, municipal waste incinerators will enjoy a buoyant market. The
new SSR series of municipal incinerators, which started selling in this
year, can greatly reduce both operating and production costs.
The new product segment large-size facilities EPC contributed EUR 8.9
million or 19.3% to total sales. All the revenue in this segment in 2008
comes from Datong waste-to-energy project which is the first large-size EPC
project for the company. With the shifting of ZhongDe's focus to large-size
waste-to-energy project, the revenue from large-size facilities EPC will
take more share in the total revenue. The company has signed another
large-size EPC contract with the value of approximately EUR 30 million in
January 2009.
In the current difficult market environment and the uncertainty in the
international financial markets, ZhongDe Waste can not give any concrete
financial outlook for 2009. However, due to the decided strategy and the
significant increase in demand, the management is convinced to maintain the
growth in the ongoing financial year.
Key Financial Highlights
Key figures in kEUR 2008 2007 Change
Order intake 58,758 44,351 32.48%
Order backlog 28,355 20,494 38.36%
Revenues 46,007 31,133 47.78%
Gross profit 27,093 21,637 25.22%
Gross profit margin 58.90% 69% -14.64%
Cost of sales 18,914 9,496 99.18%
EBITDA 20,693 18,685 10.75%
EBIT 20,429 18,612 9.76%
Net profit 22,430 19,058 17.69%
Net profit margin 48.8% 61% -20.00%
Earnings per share 1.73 1.47 17.69%
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 190 waste incinerators in about
13 provinces, and more than 130 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 centers in
the hospital and healthcare industry. ZhongDe Group is one of the leading
suppliers of small and midsized solid waste incinerators in China,
supplying state-of-the-art products.
Contact:
Linda Zhong
Investor Relations Manager
Stadthausbrücke 1-3
20355 Hamburg
Tel: +49 40 37644 756
Fax: +49 40 37644 500
Email: zhong.li@zhongdetech.de
30.04.2009 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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