Corporate | 30 November 2012 09:42
ZhongDe Waste Technology AG / Key word(s): Quarter Results
30.11.2012 / 09:42
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Q3 results 2012
ZhongDe Waste Technology AG: Financial results benefit from positive
one-off effects in the third quarter 2012
* Revenues increased by 15.8% to EUR 7.4 million in Q3 2012
* EBIT of EUR 7.0 million due to positive one-off effects
* New BOT project signed in October
Frankfurt, 30 November 2012 - The third quarter 2012 remained difficult for
ZhongDe Waste Technology AG in regards to the completion of its running BOT
and EPC projects. Nevertheless, the quarter-on-quarter financial results
have improved and the Management Board confirms its guidance to reach
better results in 2012 than in 2011.
The third quarter 2012 was significantly impacted by two positive one-off
effects: First, the land use rights for the planned manufacturing facility
in Beijing, which had been written off at the end of the year 2011, have
finally been approved by the Chinese authorities and thus generated an
appreciation of EUR 6.7 million. In addition the results of the third
quarter were positively affected by the reversal of a provision amounting
to EUR 1.0 million to cover penalties, which were settled at a more
favorable amount. Both one-off effects are reflected in the other operating
income.
Revenues of the Company increased by 15.8% to EUR 7.4 million in the third
quarter 2012 as a result of the progress on the Kunming and Xianning BOT
projects. Despite this positive development, revenues for the first 9
months 2012 are still 8.0% below the comparable period 2011. Gross profit
grew slightly by 0.8% to EUR 1.3 million in Q3 2012. Adjusted for the
positive one-off effects, EBITDA increased by EUR 0.3 million but remained
negative at EUR -0.9 million (Q3 2011: EUR -1.2 million) while the adjusted
EBIT grew to EUR -0.8 million (Q3 2011: EUR -1.2 million).
Including the one-off effects EBIT increased to EUR 7.0 million (Q3 2011:
EUR -1.2 million) and net profit amounted to EUR 6.3 million (Q3 2011: EUR
-1.8 million). For the full 9 months 2012 net profit reached EUR 2.1
million (9M 2011: EUR -5.1 million).
The strict cost control measures implemented to improve ZhongDe's operative
results showed impact in Q3 2012. Selling and distribution costs remained
stable at EUR 0.5 million compared to the third quarter last year.
Administrative expenses even went down by 25.4% to EUR 0.9 million (Q3
2011: EUR 1.2 million).
Despite several internal and external factors including delays in the
granting of various Chinese government approvals, which slowed down the
completion of ZhongDe's running BOT and EPC projects, ZhongDe still
disposes of a strong cash position of EUR 108.7 million and a total equity
of EUR 128.6 million as of 30 September 2012. The equity ratio of the
company amounted to 59.1%.
Outlook
For the rest of the financial year 2012, ZhongDe will focus on completing
its BOT project in Zhoukou and on advancing the construction process of its
other BOT projects in Kunming and Xianning. Due to the slow recovery of the
market for small-scale incinerators, ZhongDe will continue to focus on
large-scale waste-to-energy projects.
Regarding the financial results, ZhongDe's Management Board confirms its
guidance of reaching better overall financial results in 2012 compared to
2011.
New BOT project in Lanzhou signed in October
In October 2012, ZhongDe was able to achieve a very important business deal
by signing the largest waste-to-energy BOT project within China. Customer
is the Lanzhou Qinwangchuan Integrative Development Management Committee.
The new waste-to-energy plant located in Lanzhou City will have a daily
waste disposal capacity of up to 3,000 tons. The total order intake amount
of Lanzhou is expected to be EUR 177.9 million.
'We are starting the planning phase of the project in Lanzhou in the fourth
quarter 2012. Thanks to this new order, the Management Board of ZhongDe
expects to achieve much better financial results in the future', says
William Wang, CFO of ZhongDe Waste Technology AG.
About ZhongDe Group
ZhongDe Group designs, invests, constructs, finances and operates
waste-to-energy 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 throughout
China. ZhongDe is one of the leading players in the project development and
operation of waste-to-energy plants in China.
Contact
ZhongDe Waste Technology AG
William Jiuhua Wang
Executive Director and CFO
E-Mail: william.jw@zhongdetech.com
Ying Sun
Messeturm 25th floor
Friedrich-Ebert-Anlage 49
60308 Frankfurt am Main
T: +49 69 50956 5655
F: +49 69 50956 5567
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
Herriotstraße 1
60528 Frankfurt am Main
Germany
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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