DGAP-News: ZhongDe Waste Technology AG / Key word(s): Quarterly / Interim Statement ZhongDe Wastes technology AG: Fast progress of BOT project in Lanzhou led to strongly improved revenues in the third quarter 2016 28.11.2016 / 11:43 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Results 9M 2016 (without considering the disclosure of discontinued operations as required under IFRS 5) ZhongDe Wastes technology AG: Fast progress of BOT project in Lanzhou led to strongly improved revenues in the third quarter 2016 - Revenues of 52.3 million euros in the first nine months 2016 mainly due to fast progress of BOT project in Lanzhou - Sale of subsidiary "Chung Hua" to Capital Yield Group Limited in October - Revision of guidance: Negative EBITDA expected for 2016 but positive impact from sale of "Chung Hua" in financial year 2017 Frankfurt, 28 November 2016 - In the first nine months of 2016 ZhongDe made further progress on its main BOT project in Lanzhou, which resulted in strongly improved revenues. Furthermore, the sale of the subsidiary "Chung Hua" in October 2016 will have a significant positive effect on ZhongDe's financial results in 2017. Due to the fast progress of works of the BOT project in Lanzhou, total revenues of the Group increased significantly to 52.3 million euros (9M 2015: 10.3 million euros) in the first nine months of 2016. Revenues were almost exclusively contributed by the BOT project in Lanzhou. Gross profit of ZhongDe improved to -0.7 million euros (9M 2015: -1.4 million euros). The main reasons for the still negative gross result are - as already in the previous year - the necessary depreciations on inventories and the continuous slow progress of the EPC projects. As the BOT projects are still accounted under the zero-profit-method, the increased stage of completion of the BOT project in Lanzhou has no influence on the gross result. EBIT increased to 2.0 million euros (9M 2015: -4.1 million euros). Net loss decreased to -0.7 million euros compared to -6.7 million euros in the same period 2015. Mainly due to foreign currency translation effects ZhongDe's equity position declined by 5.9 per cent to 98.4 million euros as at 30 September 2016 (31 December 2015: 104.6 million Euros). Accordingly, equity ratio went down to 30.2 per cent (31 December 2015: 36.6 per cent). As at 30 September 2016 cash and cash equivalents increased to 84,3 million euros from 75.8 million euros as at 31 December 2015. In October 2016 ZhongDe Waste Technology sold all shares of its wholly owned subsidiary Chung Hua Environment Protection (Holding) Group Ltd., Hong Kong ("Chung Hua") to the Capital Yield Group Limited for approximately 122 million euros. The first tranche of the purchase price amounting to 12.0 million Euros was already paid in November. Chung Hua and its subsidiaries comprise the BOT projects in Lanzhou, Zhoukhou, Xianning and Kunming as well as the EPC project in Zhucheng, which accordingly will be sold to the buyer. Adjusted outlook - negative EBITDA expected in 2016 but improved financial results presumed for 2017 Regarding the full-year 2016, ZhongDe confirms for the most part of its outlook given in the half-year report 2016 except for the EBITDA prognosis. Mainly due to an increase of bad debt allowances amounting to 4.0 million Euros, the full-year EBITDA of the group is expected to remain negative. In the half-year report the Management Board had still confirmed the outlook given in the annual report 2015 predicting that EBITDA will turn into positive due to a rapid revenue growth in 2016. In total, ZhongDe anticipates an extraordinary profit for 2017 resulting from the sale of Chung Hua. This will have a significant positive effect on ZhongDe's results in 2017. Please find the complete 9M interim statement 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 Messeturm 25th floor Friedrich-Ebert-Anlage 49 60308 Frankfurt Tel.: +49 (0) 69 50956 5655 Fax: +49 (0) 69 50956 5520 Email: [email protected] --------------------------------------------------------------------------- 28.11.2016 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 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 --------------------------------------------------------------------------- 524633 28.11.2016