Corporate | 2 May 2011 11:51
ZhongDe Waste Technology AG / Key word(s): Final Results
02.05.2011 / 11:51
Frankfurt, May 02, 2011 - ZhongDe Waste Technology AG ('ZhongDe', 'the
Company', Ticker symbol 'ZEF'), a well-known player in the project
development and operation of large-scale energy-from-waste plants in China,
realized a net loss for the full year 2010 of EUR 0.9 million (vs. EUR 5.7
million net profit in 2009). Revenues in 2010 decreased by 16.9% to EUR
33.4 million while the EBIT regressed by 88.5% to EUR 0.9 million.
The net loss and decreased revenues in 2010 were caused by the delay in the
construction progress of ZhongDe's energy-from-waste projects due to the
retard of local government approvals as well as by declining revenues in
the field of small energy-from-waste plants. Despite the challenging
circumstances, the strong order backlog, equity and cash of ZhongDe
indicate the Company's potential.
Strong order backlog indicates potential revenue increase
The order backlog at the end of 2010 amounted to EUR 157.8 million, an
increase of 4.4% against 2009. The backlog includes four EPC projects
(Shouguang, Zhucheng, Zhaodong and Dingzhou) and four BOT projects
(Feicheng, Zhoukou, Xianning and Kunming). Although more cash was invested
in the construction of these projects, ZhongDe's cash position was still
very strong and amounted to EUR 106.5 million. The total assets increased
by 18.6% to EUR 168.6 million, while the total equity increased by 8.4% to
EUR 135.6 million. 'The order backlog is regarded as a strong indication of
our potential to increase revenues and net profits during the coming
years', says Zefeng Chen, founder and CEO of ZhongDe Waste Technology AG.
Due to the strong cash position, retained earnings and optimistic forecast
of ZDWT in 2011, the executive board and the supervisory board propose the
distribution of a dividend of EUR 0.15 per share to the shareholders. The
proposal is subject to the approval at the Annual General Meeting in June
2011.
Outlook
In 2011, the new political measures announced by the central government to
support the energy-from-waste plant construction, will accelerate the
approval process of the local government in China. Hence the ZhongDe
management team has confidence to complete two projects (Zhoukou, Zhucheng)
by the end of 2011 and three further projects (Kunming, Dingzhou and
Xianning) in 2012, according to the adjusted schedule. In addition, at
least one EPC project and one BOT project are going to be signed in the
course of 2011. The scheduled waste disposal capacity of the new projects
is not less than 1,000 tons per day, each.
Although ZhongDe performance in Q1 2011 is weak, the Company expects its
sales and profit levels in 2011 and 2012 to be higher than those of 2010,
because governments of China accelerates its approvals of energy-from-waste
projects due to the new policies. The order backlog worth EUR 157.8 million
as at 31 December 2010 forms the foundations of ZhongDe's growth targets.
'Although we realize, that there are still risks and challenges in the
future, the ZhongDe management team is confident that ZhongDe has the
financial strength and expertise to keep ZhongDe's growth steady and
sustainable in the new decade. We can continue to take advantage of the
enormous potential in the Chinese and international energy-from-waste
market and create more value for the Company and our shareholders', says
Mr. Chen.
About ZhongDe Group
ZhongDe Group designs, constructs, finances and operates energy-from-waste
incineration plants generating electricity from the disposal of solid
municipal and industrial waste. ZhongDe realises either EPC (Engineering,
Procurement and Construction) or BOT (Build, Operate and Transfer)
projects, focusing on large-scale plants with waste disposal capacities of
around 1,000 tons per day. Since 1996, ZhongDe Group has installed
approximately 200 waste incinerators in 13 provinces and more than 80 waste
incinerators in the last three financial years alone. ZhongDe is one of the
leading players in the project development and operation of large-size
energy-from-waste plants in China.
Contact
William Jiuhua Wang
Executive Director and CFO
E-Mail: william.jw@zhongdetech.com
Ying Sun
Assistant IR Manager
Herriotstr. 1
60528 Frankfurt am Main
Germany
T: +49 69 67733 172
F: +49 69 67733 200
E-Mail: ying.sun@zhongde-ag.de
Kirchhoff Consult AG
Nicole Schüttforth
Investor Relations Consultant
T: +49 40 60 91 86 64
F: +49 40 60 91 86 60
E-Mail: nicole.schuettforth@kirchhoff.de
End of Corporate News
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Language: English
Company: ZhongDe Waste Technology AG
Stadthausbrücke 1-3
20355 Hamburg
Deutschland
Phone: + 49 69 67733 172
Fax: + 49 69 67733 200
E-mail: ying.sun@zhongde-ag.de
Internet: www.zhongde-ag.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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