Corporate | 31 August 2009 09:16
ZhongDe Waste Technology AG / AGM/EGM
Release of a Corporate News, transmitted by DGAP - a company of EquityStory
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The issuer / publisher is solely responsible for the content of this announcement.
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- Q2 revenues decreased by 7% year-on-year (YOY) to EUR 8.2m
- Net profit fell down to EUR 34k from EUR 5.2m
- Two large BOT (Build-Operate-Transfer) projects in Kunming & Xianning
with total investment of RMB 800m (EUR 81m)
Hamburg, August 31st, 2009 - ZhongDe Waste Technology AG ('ZhongDe', Ticker
symbol 'ZEF') revenues decreased by 7% YOY to EUR 8.2m in the second
quarter of 2009. In the first half of the fiscal year 2009, ZhongDe's
revenue decreased by EUR1.6m to EUR18.4m, compared to the first half 2008.
In the same time period the EBITDA decreased by EUR 6.4m to EUR 4.5m.
The revenue decrease results from a lower number of sold small- and
medium-size incinerators in Q2 of 2009. Some Chinese municipalities have
postponed their purchase plans for the small-size incinerators due to
reduced tax income as the consequence of the global economic crisis. The
company has reacted on that market change by shifting its strategic focus
to the market division of the large-size EPC (Engineering, Procurement and
Construction) projects, such as the projects in Datong?Zhaodong and
Zhucheng. Thanks to the high efficiency and stable cash inflow of the
large-size incineration plants with electricity generation, these
waste-to-energy projects are supported not only by the municipal
authorities but also by the central government. Because of the stimulating
economic packages from the Chinese central government, the demand for
large-size waste-to-energy plants is increasing.
Regarding the profit development, the gross profit margin of EPC projects
is normally lower than that of small- and medium-sized incinerators. As a
result, the gross profit margin has decreased from 69% to 27% in Q2 2009
compared to the according reporting period in 2008. The net profit has
decreased from EUR 5.2m in Q2 2008 to EUR 34k in Q2 2009, for the
company began to pay company income tax in China in 2009 after the two-year
tax holiday.
However, in spite of the investments for the new facility in Beijing, the
company's net cash position was improved to EUR 115.8m as of June 30th,
2009.
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, for the
policy from the Chinese central government to stimulate the internal demand
is being launched step by step. The company is confident that it can
continue taking advantage of the huge market potential in the Chinese
waste-to-energy branch to create superior values.'
In the course of Q2 2009, ZhongDe group signed two large BOT projects in
Xianning and Kunming city with the total investment volume of RMB 800m (EUR
81m). Both Kunming and Xianning projects guarantee the stable cash flow
from electricity sales.
The company's new strategy for the long-term development includes
international marketing, relocating its Chinese headquarters from Fuzhou,
the capital city of Fujian Province, to Beijing, the capital city of China.
It will strengthen ZhongDe's abilities in the field of HR, R&D, Sale &
Marketing and Financing to help the company to develop competitive strength
in the market of large-size waste-to-energy projects.
Screening for advanced technologies, ZhongDe has been negotiating with
international companies in waste-to-energy branch, such as ThyssenKrupp
Xeron Energy GmbH, etc. It will broaden ZhongDe's capability in conducting
large-scale waste-to-energy projects and enhance its competitiveness in the
international market.
Outlook
The market environment is still uncertain and there has been great
volatility in key business performance indicators, such as the Gross
Domestic Product (GDP) in the first half of 2009. Therefore, ZhongDe Group
refrains to forecast the revenues and earnings development for the current
financial year. However, ZhongDe Group sees positive impacts on the
business development in 2009: The government stimulus package is beginning
to show signs of initial success and ZhongDe Group is directly benefiting
from this in the segment of large-size waste-to-energy plants. Furthermore,
the new R&D Center and the facility in Bejijing will increase our R&D and
production capacities and thereby enable ZhongDe to fully benefit from
China's growing waste market.
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 centers in
the hospital and healthcare industry. ZhongDe Group is one of the leading
player of solid waste incinerators and waste-to-energy plants in China,
supplying state-of-the-art products and advanced waste-to-energy
technology.
William Jiuhua Wang
Executive Director and CFO
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
31.08.2009 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, München, Hamburg, Stuttgart
End of News DGAP News-Service
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