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DGAP-News: ZhongDe Waste Technology AG: Project progress not reflected in Q1 2014 results

May 27, 2014

DGAP-News: ZhongDe Waste Technology AG / Key word(s): Quarter Results ZhongDe Waste Technology AG: Project progress not reflected in Q1 2014 results 28.05.2014 / 08:58 --------------------------------------------------------------------- Results Q1 2014 ZhongDe Waste Technology AG: Project progress not reflected in Q1 2014 results * Revenue down by 13.9 per cent to 1.1 million Euros * EBIT decreased by 8.2 per cent to -1.4 million Euros * Net result amounted to -2.3 million Euros * Strong cash position of 99.9 million EurosFrankfurt, 28 May, 2014 - Although there were still obstacles slowing down the completion of ZhongDe's current BOT and EPC projects, slight but continuous progress could be shown in all projects. Nevertheless, the financial results of the first quarter 2014 have been negatively affected by the application of the IFRS "zero-profit method" as well as by increased finance costs. In Q1 2014 ZhongDe generated revenues of 1.1 million Euros (Q1 2013: 1.2 million Euros). This corresponds to a decline of 13.9 per cent, which was mainly caused by the zero-profit accounting method, which is being applied since the second quarter 2013. Due to this new accounting method 0.1 million Euros were not accounted as revenues in the first quarter 2014. ZhongDe's current EPC projects in Zhucheng and Dingzhou contributed 529 thousand Euros to total revenues, while the BOT projects in Zhoukou, Kunming, Lanzhou, Feicheng and Xianning contributed 543 thousand Euros. The generally slow progress of the construction process was mainly due to the long Chinese Spring Festival. Gross profit decreased slightly by 1.3 per cent from 158 thousand Euros to 156 thousand Euros year-on-year, while gross profit margin slightly increased from 13 per cent in the first quarter of 2013 to 15 per cent in the same period 2014. EBIT went down by 8.2 per cent to -1.4 million Euros (Q1 2013: -1.3 million Euros). Net loss amounted to 2.3 million Euros (Q1 2013: net loss of 1.5 million Euros) Good order backlog and comfortable financial position Due to the construction progress of ZhongDe's BOT and EPC projects, currency translation differences as well as last year's corrections of the order backlog, the order backlog amounting to 219.1 million Euros in Q1 2014 was less compared to the first quarter of 2013 with an order backlog of 264.5 million Euros, but still on a high level. Furthermore, ZhongDe continues to maintain a comfortable cash position of 99.9 million Euros (Q1 2013: 110.1 million Euros), which gives the company the necessary flexibility for future BOT investments and project finance. Unchanged outlook Regarding the outlook for the full year 2014, there are no changes compared to the outlook ZhongDe published in its annual report 2013. For 2014 improved operating results are expected although still leading to a loss before taxes. The group's cash position is supposed to further stabilize within the financial year 2014. Please find the complete Q1 report of ZhongDe Waste Technology AG on the company's website under the following link: http://www.zhongde-ag.com/investor_relations/publikationen.html About ZhongDe GroupZhongDe Group designs, invests, constructs, finances and operates energy-from-waste plants generating electricity from the incineration 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 energy-from-waste plants in China. Contact ZhongDe Waste Technology AG William Jiuhua Wang Executive Director and CFO E-Mail: william.jw@zhongdetech.comYing Sun Investor Relations Messeturm 25th floor Friedrich-Ebert-Anlage 49 60308 Frankfurt am Main T: +49 69 50956 5655 F: +49 69 50956 5520 E-Mail: ying.sun@zhongde-ag.deKirchhoff 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 --------------------------------------------------------------------- 28.05.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group 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 Messeturm 25th floor 60308 Frankfurt Germany Phone: + 49 69 50956 5655 Fax: + 49 69 50956 5520 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 --------------------------------------------------------------------- 270800 28.05.2014


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Source: DGAP Corporate News


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