DGAP-News: ZhongDe Waste Technology AG / Key word(s): Half Year Results ZhongDe Waste Technology AG: Project in Lanzhou continues progressing rapidly 30.08.2016 / 10:07 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- H1 2016 results ZhongDe Waste Technology AG: Project in Lanzhou continues progressing rapidly - Revenue increased by more than 100 per cent to 37.6 million euros in the first half of 2016 - EBIT amounted to -5.8 million euros (H1 2015: -2.7 million euros) - Net loss of -6.3 million euros (H1 2015: -4.2 million euros) - Unchanged outlook for the financial year 2016 Frankfurt, 30 August 2016 - In the first half of 2016, ZhongDe Waste Technology AG ("ZhongDe") continued to focus on the progress of its main BOT project Lanzhou, which led to strongly improved revenues. Total revenues in the first six months of 2016 grew by more than 100 per cent to 37.6 million euros (H1 2015: 8.1 million euros) mainly due to the project progress in Lanzhou. Thereof 37.5 million euros were contributed by BOT projects (H1 2015: 7.4 million euros) and only 14 thousand euros by EPC projects (H1 2015: 0.7 million euros). Due to the slow progress of EPC projects during the first six months of 2016, gross result improved reaching -0.5 million euros (H1 2015: -1,1 million euros). While the EPC projects are still accounted for under the percentage-of-completion-method, the BOT projects are accounted for the zero-profit-method. Thus, the increased stage of completion of the Lanzhou BOT project has no influence on the gross result margin. EBIT for the reporting period amounted to -5.8 million euros (H1 2015: -2.7 million euros) with an improved, but still negative EBIT margin of -15 per cent (H1 2015: -34 per cent). The financial result amounted to -0.4 million euros in H1 2016 compared to 0.0 million euros in H1 2015 mainly due to increased interest expenses relating to the new bank loans granted to ZhongDe in the second half of 2015. This effect was offset by the decrease of income tax expenses from 1.5 million euros in the first half 2015 to 0.1 million euros in the first half 2016. The reasons for the higher tax expenses in the first half year 2015 were mainly profits caused by foreign exchange gains which are locally taxable. Accordingly, the net loss increased to -6.3 million euros (H1 2015: -4.2 million euros). Solid financial position As at 30 June 2016, ZhongDe's cash position amounted to 75.4 million euros (as at 31 December 2015: 75.8 million euros). The existing funds are planned to be primarily invested in budgeted projects such as the BOT project in Lanzhou as well as the EPC projects in Zhucheng and Dingzhou. Furthermore, the management of ZhongDe intends to secure the cash position of the company by obtaining additional loans to finance the current projects. Total equity of the Group amounted to 93.9 million as of 30 June 2016 (as of 31 December 2015: 104.6 million euros), corresponding to an equity ratio of 31.1 per cent (as of 31 December 2015: 36.6 per cent). Due to the project progress in Lanzhou and foreign currency translation differences ZhongDe's order backlog decreased by 31.6 per cent to 92.7 million euros. Unchanged outlook for financial year 2016 Looking ahead to the coming second half of 2016, we expect that the construction progress of the EPC project in Zhucheng and mainly the BOT project in Lanzhou will continue to contribute to ZhongDe's revenues. The trial run of the BOT projects in Zhoukou, Xianning and Kunming will additionally contribute to income. Based on the results from the first half-year, the management is convinced that it will be able to meet the targets for the financial year 2016 outlined in the Annual Report for the financial year ended 31 December 2015. Moreover, the Group plans to offer waste transportation in the near future. To this purpose, ZhongDe established Zhoukou Fulin Environmental Engineering Construction Co., Ltd. However, as of the end of the first half-year of 2016, the new company has not yet commenced its business activities. Regarding the future development of the company the management board currently evaluates all strategic opportunities on a regular basis, which refers to the acquisition of new EPC contracts as well as to the potential sale of existing BOT projects. Please find the complete half-year report 2016 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 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] --------------------------------------------------------------------------- 30.08.2016 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. Archive at 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, Tradegate Exchange End of News DGAP News Service --------------------------------------------------------------------------- 496963 30.08.2016