Press releases
ZhongDe Waste Technology AG adjusted strategy for future growth in 2009
Hamburg, 31 August, 2009
Q2 revenues decreased by 7% year-on-year (YOY) to € 8.2m
Net profit fell down to € 34k from € 5.2m
Two large BOT (Build-Operate-Transfer) projects in Kunming & Xianning with total investment of RMB 800m (€ 81m)
ZhongDe Waste Technology AG ("ZhongDe", Ticker symbol "ZEF") revenues decreased by 7% YOY to € 8.2m in the second quarter of 2009. In the first half of the fiscal year 2009, ZhongDe's revenue decreased by €1.6m to €18.4m, compared to the first half 2008. In the same time period the EBITDA decreased by € 6.4m to € 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 € 5.2m in Q2 2008 to € 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 € 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 (€ 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.
Financial Highlights
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.
Contact
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
Overview
30 August 2010
ZhongDe Waste Technology AG: Better Performance of Q2 2010 vs. Q2 2009
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27 August 2010
ZhongDe Waste Technology AG: BNY Mellon has been appointed as Depositary Bank for ADR program
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19 July 2010
ZhongDe Waste Technology AG moves Offices from Hamburg
to Frankfurt am Main
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4 June 2010
ZhongDe Waste Technology AG signs EPC contract with Shouguang Fuyuan Waste to Power Co., Ltd
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28 May 2010
ZhongDe Waste Technology AG: Weak Q1 financials due to difficult weather and market conditions
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30 April 2010
ZhongDe Waste Technology AG: Strong order backlog after strategic shift
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12 February 2010
ZhongDe Waste Technology AG: Successful operation of Datong Project
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30 December 2009
ZhongDe Waste Technology AG signs agreement to increase contract amount of Datong Project
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30 December 2009
ZhongDe Waste Technology AG signs EPC contract with Dingzhou Ruiquan Solid Waste Treatment Co., Ltd
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30 November 2009
ZhongDe Waste Technology AG presents its financial results for Q3 2009
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7 September 2009
ZhongDe Waste Technology AG signs Letter of Intent with Covanta Energy Asia Pacific Holdings Ltd.
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31 August 2009
ZhongDe Waste Technology AG adjusted strategy for future growth in 2009
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3 August 2009
ZhongDe Waste Technology AG Annual General Meeting adopts dividend
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30 July 2009
ZhongDe Waste Technology AG signs letter of intent with ThyssenKrupp Xervon Energy
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20 July 2009
ZhongDe Waste Technology AG signs contract for waste incineration plant in Zhaodong City
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10 June 2009
ZhongDe Waste Technology AG announces to postpone its Annual General Meeting
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29 May 2009
ZhongDe Waste Technology AG presents its financial results for Q1 2009
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30 April 2009
ZhongDe Waste Technology AG maintains high growth rates
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20 April 2009
ZhongDe Waste Technology AG announces signing of two large-size BOT projects
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6 April 2009
ZhongDe Waste Technology AG signs Letter of Intent on Renewable Energy Projects for Electricity Generation in Jilin, PRC
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3 February 2009
ZhongDe Waste Technology AG announces strategic cooperation agreement with Genesis Energy Holdings Limited
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23 January 2009
ZhongDe Waste Technology AG signs contract with Zhucheng Baoyuan New Energy Power Generation Co., Ltd
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29 December 2008
ZhongDe Waste Technology AG announces change in the Supervisory Board
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28 November 2008
ZhongDe Waste Technology AG reports continued healthy growth in Q3 2008
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10 November 2008
ZhongDe Waste Technology AG expects continuous growth and confirms initial estimation for financial year 2008
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30 September 2008
ZhongDe Waste Technology AG expects continuous growth and confirms initial estimation for financial year 2008
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29 August 2008
ZhongDe Waste Technology AG reports continuous growth in Q2 2008
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30 June 2008
ZhongDe Waste Technology AG announces cooperation agreement with Veolia
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16 June 2008
ZhongDe Waste Technology AG announces signing of Lianshui BOO project
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30 May 2008
ZhongDe Waste Technology AG reports strong growth in Q1 2008
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29 April 2008
ZhongDe Waste Technology AG presents its audited full year results for fiscal year 2007: net profit more than doubled – order intake increased by 90% to €44.4 million
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7 April 2008
ZhongDe Waste Technology AG announces signing of Xinjiang BOT project
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18 March 2008
ZhongDe Waste Technology AG releases preliminary results for fiscal year 2007: net profit more than doubled - order intake increased by 90% to €44.4 million
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11 March 2008
ZhongDe Waste Technology AG signs contract for large scale waste incinerator plant
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28 November 2007
ZhongDe Waste Technology AG continues to grow in Q3 2007
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19 September 2007
ZhongDe Waste Technology AG secures land usage rights in Beijing – headstone for building a second production facility
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28 August 2007
ZhongDe Waste Technology AG presents strong performance in H1 2007
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9 August 2007
ZhongDe Waste Technology AG announces signing of two BOT projects
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12 July 2007
ZhongDe Waste Technology AG: Greenshoe option exercised in full
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5 July 2007
ZhongDe Waste Technology AG sets offer price and issue volume
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28 June 2007
ZhongDe Waste Technology AG: Price range between Euro 23 and Euro 26
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25 June 2007
ZhongDe Waste Technology AG launches its Initial Public Offering on the Prime Standard in Frankfurt
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14 June 2007
ZhongDe Waste Technology AG planning IPO in July 2007
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