Press releases
ZhongDe Waste Technology AG presents its financial results for Q3 2009
Hamburg, November 30th, 2009
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.
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 k€ | Q3 2009 | Q3 2008 | Change |
|---|---|---|---|
| Order intake1 | 24,870 | 8,455 | >100% |
| Order backlog | 55,927 | 36,264 | +54% |
| Revenues | 6,273 | 15,563 | -60% |
| Gross profit | 2,046 | 7,865 | -74% |
| Gross profit margin | 33% | 51% | -35% |
| Cost of sales | 4,227 | 7,698 | -45% |
| EBITDA | 468 | 6,388 | -93% |
| EBITDA margin | 7% | 41% | -82% |
| EBIT | 378 | 6,317 | -94% |
| EBIT margin | 6% | 41% | -85% |
| Net profit | 433 | 6,515 | -93% |
| Net profit margin | 7% | 42% | -84% |
| Earnings per share (in EUR) | 0.032 | 0.50 | -93% |
| Amounts in k€ | Q1-3 2009 | Q1-3 2008 | Change |
|---|---|---|---|
| Order intake1 | 48,842 | 53,013 | -8% |
| Order backlog | 55,927 | 36,264 | +54% |
| Revenues | 24,713 | 35,655 | -31% |
| Gross profit | 9,948 | 21,718 | -54% |
| Gross profit margin | 40% | 61% | -34% |
| Cost of sales | 14,765 | 13,937 | +6% |
| EBITDA | 5,008 | 17,363 | -71% |
| EBITDA margin | 20% | 49% | -58% |
| EBIT | 4,736 | 17,179 | -72% |
| EBIT margin | 19% | 48% | -60% |
| Net profit | 2,591 | 18,737 | -86% |
| Net profit margin | 10% | 53% | -80% |
| Earnings per share (in EUR) | 0.203 | 1.44 | -86% |
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
Tel: +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
Overview
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27 August 2010
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19 July 2010
ZhongDe Waste Technology AG moves Offices from Hamburg
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28 May 2010
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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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