DGAP-News: ZhongDe Waste Technology AG / Key word(s): 9-month figures Adverse external and internal effects slow down ZhongDe's project progress 27.11.2015 / 08:24 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Results 9M 2015 Adverse external and internal effects slow down ZhongDe's project progress * Revenues of 10.3 million Euros * EBIT amounts to -4.1 million Euros * Some projects delayed or suspended, but progress as planned at largest BOT project in Lanzhou * Year-on-year decrease in revenues and operating result expected for full-year 2015 Frankfurt, 27 November 2015 - The first nine months of 2015 were marked by a weaker global economic development and a slow-down in China as well. The tax income of the Chinese Government decreased leading to a higher level of debts of the local governments. Due to these adverse external circumstances as well as due to internal reasons, three BOT projects were delayed and two EPC projects were suspended, which had a negative impact on the nine-month-results of the group. Revenues went down by 10.3 per cent to 10.3 million Euros (9M 2014: 11.5 million Euros) caused by the slow project progress since the second quarter of 2015. With regard to the business segments of ZhongDe, BOT projects were the main sales driver with revenues of 9.6 million Euros (9M 2014: 5.3 million Euros), while EPC projects accounted for 0.7 million Euros of total revenues (9M 2014: 6.2 million Euros). Gross profit amounted to -1.4 million Euros (9M 2014: 0.7 million Euros). This decrease was mainly due to the fact that inventories relating to the incinerator segment amounting to 0.9 million Euros had to be written off during 2015. EBIT dropped by 33.3 per cent to -4.1 million Euros (9M 2014: -3.1 million Euros). Net loss increased by 21.9 per cent to -6,7 million Euros (9M 2014: -5.5 million Euros). Despite the weak nine-month-results, ZhongDe's equity position remained stable at 113.0 million Euros as at 30 September 2015 (31 December 2014: 112.9 million Euros). The equity ratio amounted to 43.5 per cent (31 December 2014: 45.3 per cent). Cash and cash equivalents amounted to 81.2 million Euros as at 30 September 2015, a decrease of 6.9 per cent compared to 87.2 million Euros as at 31 December 2014. The largest part of the group's existing cash is planned to be invested in the construction of the BOT project in Lanzhou, the biggest waste-to-energy project throughout China. Adjusted outlook due to project delay and suspension Due to the reasons mentioned above, the completion of the BOT projects in Zhoukou and Xianning had to be postponed to 2016. The Kunming BOT project is expected to be completed in 2017 instead of 2016. The completion of the EPC projects in Zhucheng, Dingzhou and Wuhai will also be delayed. While Zhucheng is assumed to be finalized in 2016, Dingzhou and Wuhai are temporarily suspended until the referring customers signal that the construction can be resumed. However, ZhongDe's largest project in Lanzhou is progressing according to the original plan. Considering the delay of some current BOT projects and the suspension of the EPC projects in Dingzhou and Wuhai, the management of ZhongDe was forced to adjust its outlook for the full-year 2015. The total group sales and operating profit for the full-year 2015 are expected to decrease compared to 2014. Regarding the future development of the company, the management board evaluates 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 9M 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] --------------------------------------------------------------------------- 27.11.2015 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 --------------------------------------------------------------------------- 417989 27.11.2015