Corporate | 31 May 2011 16:45
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ZhongDe Waste Technology AG / Key word(s): Quarter Results
Frankfurt, May 31, 2011 – In the first quarter of 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 gross profits of EUR 0.5 million, keeping the same results as in last year's first quarter, due to the gross profit margin increasing from 13 % to 23 %, while revenues fell from EUR 3.7 million to EUR 2.2 million. The net profit improved by 30% from EUR -2.0 million to EUR -1.4 million on a year-on-year basis, mainly due to a reduction in income taxes. The earnings per share were up 30% from EUR -0.16 to EUR -0.11 due to the net profit improvement and the 400,000 shares buyback. The negative net income and decreased revenues in the first quarter of 2011 were mainly caused by the delay in the construction progress of ZhongDe's energy-from-waste projects due to the retard of local government approvals, and by construction interruption because of extremely cold weather conditions in Northern China. Strong cash and order positions indicate potential revenue increase Although more cash was invested in the construction of ongoing projects, ZhongDe's cash position kept strong and amounted to EUR 94.6 million by the end of the first quarter. The order backlog amounted to EUR 149.8 million, a slightly decrease of 5.1 % compared to Q1 2010. Three new project contracts are under the approval procedure of ZhongDe. All three projects are large-size plants with a minimum waste disposal capacity of 1000 ton/day, each. The strong order backlog and cash position indicate the Company's potential in the coming quarters, especially after the announcement of the new stimulating policy of central government of China for the energy-from-waste industry in Q2 2011. This new policy will accelerate approval processes, ensure land supply, establish a new charge system for waste disposal, improve innovation ability and announce the implementation of a talents plan. It will also encourage public and private investments into the waste disposal industry through preferential taxation. The emission tests of Feicheng Plant show technical ability of ZhongDe The emission tests for ZhongDe's Feicheng project, which was executed by an authorized Chinese testing institution with a European partner, shows, that all emission indexes are far below the Chinese national standards. The dioxin index even falls significantly short of the European Standard for Pollution Control for waste incineration. The dioxin test had been executed by a cooperation partner of United Testing Services, the Eurofins GfA GmbH. The tests were part of the trial operating period of the Feicheng plant. The report is an example for the technical ability of ZhongDe. Zefeng Chen, founder and CEO of ZhongDe Waste Technology AG, comments: 'Thanks to the strong stimulation policy of the Chinese central government, we are confident to complete two projects by the end of 2011 and three further projects in 2012. It will bring more revenues and profits in 2011 than those in 2010 for the shareholders, per the Percentage of Completion method. ' 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 well-known players in the project development and operation of large-size energy-from-waste plants in China. Contact William Jiuhua Wang
Executive Director and CFO
Ying Sun
Investor Relations Herriotstr. 1
T: +49 69 67733 172
Kirchhoff Consult AG
Nicole Schüttforth
T: +49 40 60 91 86 64
End of Corporate News 31.05.2011 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
| 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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| 127029 31.05.2011 |