DGAP-News: ZhongDe Waste Technology AG / Key word(s): Quarter Results ZhongDe Waste Technology AG: Strong revenue increase reflects continuous project progress 28.05.2015 / 16:11 --------------------------------------------------------------------- Q1 2015 results ZhongDe Waste Technology AG: Strong revenue increase reflects continuous project progress * Revenue increased significantly from 1.1 million Euros to 5.6 million Euros * EBIT went up by 0.4 million Euros to -1.0 million Euros * Outlook for 2015 confirmed Frankfurt, 28 May 2015 - In the first quarter of 2015, ZhongDe Waste Technology AG ("ZhongDe") continued to push forward the progress of its BOT and EPC projects, which is reflected in the improved financial results of the first three months. Total group revenues amounted to 5.6 million Euros and are therewith over five times higher than in the first quarter of 2014 (Q1 2014: 1.1 million Euros). While the BOT projects contributed the largest part with revenues of 4.9 million Euros (Q1 2014: 0.6 million Euros), the EPC projects contributed 0.7 million Euros (Q1 2014: 0.5 million Euros). Gross profit amounted to -0.1 million Euros (Q1 2014: 0.0 million Euros). This decrease in gross profit is due to the fact, that the major part of revenues was related to BOT projects, which are accounted for under the zero-profit method. Thus, the progress of the construction of BOT projects is not reflected in the gross profit. EBITDA improved to -0.6 million Euro compared to -1.1 million Euro in Q1 2014. EBIT went up from -1.4 million Euros in Q1 2014 to -1.0 million Euros in Q1 2015. EBIT margin amounted to -17 per cent, representing an enormous increase compared to the previous year's result (Q1 2014: -128 per cent). The main reason for the significant growth in EBIT and EBIT margin were the higher net proceeds from trial runs resulting in an increased other operating income of 0.7 million Euros (Q1 2014: 0.2 million Euros). Also net loss improved by 0.1 million Euros to -2.2 million Euros (Q1 2014: -2.3 million Euros), resulting in a net profit margin of -39 per cent (Q1 2014: -211 per cent). Increased order backlog and cash position due to foreign exchange gains Due to material foreign currency translation differences ZhongDe's total order backlog increased by 7 per cent to 234.2 million Euros from 219.1 million Euros at the end of Q1 2014 or by 10 per cent compared to 212.5 million Euros as at 31 December 2014. As at 31 March 2015, the cash position of the company amounted to 90.5 million Euros (as at 31 December 2014: 87.2 million Euros). The increase of the cash position was due to the material appreciation of the functional currency RMB versus EUR. In RMB, there was a regular cash outflow of operations and repayments of loans in the first quarter of 2015. The management of ZhongDe intends to secure the strong cash position of the company by obtaining additional loans and by selling BOT projects. Unchanged outlook for the full-year 2015 ZhongDe confirms its outlook for the full-year 2015 given in the Annual Report 2014. In summary, the management expects that the coming quarters 2015 will still remain a transition period. Nevertheless, revenues and other results are expected to increase compared to the corresponding quarters in 2014. Regarding the future development of the company the management board is evaluating all strategic opportunities on a regular basis and will do its best to improve ZhongDe's profitability and to balance the cash position of the Group. Please find the complete Q1 report 2015 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 realizes 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] --------------------------------------------------------------------- 28.05.2015 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP 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],[email protected] Internet: www.zhongde-ag.de ISIN: DE000ZDWT018 WKN: ZDWT01 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 362661 28.05.2015