DGAP-News: ZhongDe Waste Technology AG / Key word(s): Quarter Results ZhongDe Waste Technology AG: Weak business development despite increased order backlog 28.11.2013 / 09:22 --------------------------------------------------------------------- Results 9 months 2013 ZhongDe Waste Technology AG: Weak business development despite increased order backlog * Revenues decreased by 39.8 per cent to 7.4 million Euros * EBIT amounts to -5.1 million Euros * Net loss of 5.8 million Euros * Significant increase of order backlog by 80.2 per cent to 237.2 million Euros * High cash position of 86.1 million Euros allows further investments Frankfurt, November 28, 2013 - ZhongDe Waste Technology's business development in the first nine months of 2013 was still affected by the temporary suspension of some of ZhongDe's EPC projects and the slow progress in the completion of the current BOT projects. Furthermore, the new accounting method for ZhongDe's BOT projects led to lower revenues within the third quarter. Nevertheless, the strong increase of ZhongDe's order backlog as well as the company's good cash position are positive indicators for the future business development. Compared to the previous year's period, ZhongDe's revenues decreased by 39.8 percent to 7.4 million Euros (9M 2012: 12.3 million Euros) in the first nine months 2013. The main reasons were the slow progress in the construction of ZhongDe's current BOT projects Kunming and Xianning as well as the suspension of the two EPC projects in Zhucheng and Dingzhou. Moreover, the change in the accounting method of the BOT projects to the zero-profit-method had a negative impact. Since the beginning of the second quarter 2013,the zero-profit-method has been applied for prudential principle. Under the zero-profit-method, revenues were only recognised to the extent construction costs incurred on the referring project, which did not include the profit margins. This effect led to a reduction of revenues amounting to 0.9 million Euros in the first 9 months 2013. Gross profit went down from 1.8 million Euros in the first 9 months 2012 to -0.7 million Euros in 2013. This was due to the application of the zero-profit accounting method as well as an adjustment of the estimated total costs of the BOT projects in Xianning and Kunming. EBIT fell to -5.1 million Euros (9M 2012: -4.2 million Euros). Net result decreased to -5.8 million Euros (9M 2012: 2.1 million Euros). Financially well positioned for further investments As at September 30, 2013 ZhongDe's order backlog increased significantly by 80.2 per cent to 237.2 million Euros year-on-year. This was mainly a result of the new contract of the Wuhai EPC project amounting to 42.1 million Euros, as well as due to the BOT project in Lanzhou, which contributed with 136.3 million Euros to the order backlog. With a cash position of 86.1 million Euros as at September 30, 2013, ZhongDe is still well prepared for further BOT investments and project financing. ZhongDe's equity amounted to 106.5 million Euros as of September 30, 2013 (December 31, 2012: 112.8 million Euros), representing an equity ratio of 54.5 per cent (31 December 2012: 56.2 per cent). Cautious outlook 2013 continues to be a very challenging transition period for ZhongDe. Nevertheless, the company expects the financial results of the full year 2013 to exceed the results of 2012. However, the company's outlook for the financial performance within the full year 2013, highly depends on the ability to achieve the planned construction process of the EPC projects in Dingzhou and Zhucheng and the BOT projects Xianning and Kunming. ZhongDe plans to complete the sale of the Feicheng project and the Beijing manufacturing site until the end of 2013. All in all, ZhongDe expects to benefit from the favorable environment for eco-friendly waste disposal, as well as from the growing demand for energy-from-waste plants in China and throughout Asia. The BOT projects in Zhoukou, Xianning and Kunming are expected to finish the trial run period in 2014 with the approval of the local municipal governments. Furthermore, the company plans to generate more construction revenues from the Lanzhou BOT project as well as revenues from the Wuhai, Dingzhou and Zhucheng EPC projects in 2014. Please find the complete 9-month report 2013 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 Group ZhongDe 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: [email protected] Ying 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: [email protected] Kirchhoff Consult AG Nicole Schüttforth Investor Relations Consultant T: +49 40 60 91 86 64 F: +49 40 60 91 86 60 E-Mail: [email protected] End of Corporate News --------------------------------------------------------------------- 28.11.2013 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: [email protected] 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 --------------------------------------------------------------------- 242061 28.11.2013