Corporate | 29 May 2009 08:32
ZhongDe Waste Technology AG / Quarter Results
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- Q1 revenues dropped by 9% to EUR 10.2 million in line with focus on
larger projects
- Net profit decreased by 70% to EUR 2.1 million
- New EPC project in Zhucheng with a project volume of EUR 30 million
signed
Hamburg, May, 29th, 2009 - ZhongDe Waste Technology AG's revenues declined
slightly by EUR 1 million (from EUR 11.2 million to EUR 10.2 million) in
the first quarter of 2009 compared to the same period in 2008. The
reduction was driven primarily by a decrease in municipal incinerator sales
and temporary negative effects of the financial crisis. Moreover, only 6%
of project completion was recognized for the large-scale Datong EPC
(Engineering, Procurement and Construction) project in this quarter. The
development of sales remains in line with the Company's long-term strategy
of focusing on the municipal incinerator segment and EPC projects.
Gross profit decreased by 27% year on year and net profit dropped by EUR
4.9 million to EUR 2.1 million. The fall in profit was mainly due to an
increase in both finance costs and income tax for the first quarter of
2009. At the same time, the gross margin decreased by 13 percentage points
as a result of the gradual recognition of profits from the Datong EPC
project and lower margins due to an increase in order sizes. ZhongDe Group
aims to focus on the manufacturing of larger scale incinerators and EPC
projects to maximize production efficiency and future growth.
CEO Mr. Zefeng Chen comments: 'ZhongDe Group's business is successfully
progressing through its long-term growth strategy. Although the company's
performance has been affected temporarily by the global financial crisis,
the large-size waste-to-energy market is still booming in China with
Chinese government's policy to stimulate internal demand being launched
step by step. The company is confident that it can continue to take
advantage of the huge potential offered by the Chinese waste to energy
market and create superior values.'
During the period under review, the Company received orders for contracts
worth EUR 25.2 million. The order backlog amounts to EUR 48.3 million, 93%
of which comes from EPC projects.
In the course of Q1 2009, ZhongDe Group signed another large engineering,
procurement and construction project (EPC project) in Zhucheng with a
project volume of EUR 30 million. This is a milestone in the development of
ZhongDe's technology and products.
ZhongDe Group also signed a cooperation agreement with Genesis Energy that
covers the management and operation of waste-to-energy projects. The
agreement opens further doors for generating new projects.
With the joint efforts of senior engineers and technicians in
waste-to-energy technology, ZhongDe's capabilities in research &
development have greatly improved.
As it is uncertain when and to what extent the markets will recover, and
the trust in the financial markets will return, ZhongDe Group cannot give a
concrete outlook for the next months. However, there are beneficial
circumstances as the Chinese government promotes waste-to-energy projects,
which will support our growth in waste-to-energy business and strengthen
our market position.
Key Financial Highlights
Amounts in K EUR Q1 2009 Q1 2008 Change %
Order intake 25,220 43,992 -43
Oder backlog 48,336 54,142 -11
Revenues 10,203 11,211 -9
Gross profit 5,676 7,744 -27
Gross profit margin 56% 69% -
Cost of sales 4,527 3,467 31
EBITDA 4,144 6,482 -36
EBITDA margin 41% 58% -
EBIT 4,052 6,426 -37
EBIT margin 40% 57% -
Net profit 2,125 7,027 -70
Net profit margin 21% 63% -
Earnings per share 0.16 0.54 -70
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 small and midsized solid waste incinerators in China,
supplying state-of-the-art products.
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
29.05.2009 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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