Corporate | 30 November 2009 08:28
ZhongDe Waste Technology AG / Quarter Results
30.11.2009
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- In Q3 2009 revenues dropped by 60% to EUR 6.3 million in line with
focus on large EPC projects
- Net profit decreased by 93% to EUR 0.43 million
- New EPC project in Zhaodong with a volume of EUR 25 million
- Letter of Intent with Covanta Energy Asia Pacific Holdings Ltd.
Hamburg, November 30th, 2009 - According to IFRS figures consolidated
revenues of ZhongDe Waste Technology AG ('ZhongDe', Ticker symbol 'ZEF')
revenues declined from EUR 15.6 million in Q3 2008 to EUR 6.3 million in Q3
2009, representing a decrease of 60% year-on-year. In the first nine months
of 2009 revenues declined to EUR 24.7 million (9M 2008: EUR 35.7 million).
The decrease was caused primarily by the number of units sold in the
segment of small- and medium-size incinerators. Some municipal authorities
in China postponed their purchase plans for small- and medium-size
incinerators as the international financial crisis reduced local tax
incomes. No small- and medium-size municipal and medical waste incinerators
were sold during the period under review.
Gross profit dropped to EUR 2 million and net profit decreased to EUR 0.4
million in Q3 2009. The fall in profit and margin was mainly due to the
characteristics of large-size projects. In general, an EPC (Engineering,
Procurement and Construction) project has much higher revenues, higher cost
of sales and a lower margin contribution. Under the circumstance of the
global economic recession, the demand for large-size 'waste-to-energy'
projects is increasing because of the economy-stimulating policies of the
Chinese government. The Company has reacted on that market change by
shifting its strategic focus to the market segment of large-size EPC
projects, such as the projects in Datong,Zhaodong and Zhucheng. Although
the profit margin of EPC projects is lower than that of small- and
mid-sized incinerators, their much larger revenue will still bring
attractive profits in the coming quarters.
During the period under review the Company received orders for contracts
worth EUR 24.9 million, compared with EUR 9.2 million in the same period
last year, mainly due to the new Zhaodong EPC project which has a volume of
EUR 21.5 million (excluding VAT). This is the third largest EPC project
after the Datong and Zhucheng projects.
ZhongDe Waste Technology AG has signed a letter of intent in Beijing with
Covanta Energy Asia Pacific Holdings Ltd., a wholly owned subsidiary of
Covanta Holding Corporation, in order to cooperate in the development and
operation of large-scale, waste-to-energy projects. Through this
cooperation, ZhongDe enhances its technical and investment capabilities in
the development and operation of large-scale waste-to-energy projects in
both, the domestic and international markets.
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 since 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 industry to create superior values.'
Key Financial Highlights
Amounts in kEUR Q3 Q3 Change Q1-3 Q1-3 Change
2009 2008 % 2009 2008 %
Order intake 1) 24,870 9,166 >100 48,842 53.013 -8
Order backlog 55,927 36,264 54 55,927 36.264 54
Revenues 6,273 15,563 -60 24,713 35.655 -31
Gross Profit 2.046 7,865 -74 9,948 21.718 -54
Gross profit margin 33% 51% -35 40% 61% -34
Cost of sales 4,227 7,698 -45 14,765 13.937 6
EBITDA 468 6,388 -93 5,008 17.363 -71
EBITDA margin 7% 41% -82 20% 49% -58
EBIT 378 6,317 -94 4,736 17.179 -72
EBIT margin 6% 41% -85 19% 48% -60
Net profit 433 6,515 -93 2,591 18.737 -86
Net profit margin 7% 42% -84 10% 53% -80
Earnings per share(in 0.03 0.50 -93 0.20 1,44 -86
EUR) 2) 4) 3) 4)
1) Based on exchange rate at the end of the period
2) Calculated on the basis of 12,993,447 shares
3) Calculated on the basis of 12,997,792 shares
4) Calculated on the basis of 13,000,000 shares
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
suppliers of state-of-the-art solid waste incinerators in China. ZhongDe
Group also act as one of the leading players of large-size Waste-to-Energy
industry in China.
Contact
William Jiuhua Wang
Director & CFO
ZhongDe Waste Technology AG
Phone: +86 (10) 885 98 010
E-Mail: 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
30.11.2009 Financial News distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: 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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