DGAP-News: ZhongDe Waste Technology AG: Weak Q1 financials due to difficult weather and market conditions

ID: 1015415
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(businesspress24) - ZhongDe Waste Technology AG / Interim Report

28.05.2010 10:13

Dissemination of a Corporate News, transmitted by
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- Revenue decreased by 65.9% to EUR 3.7 million
- EBIT EUR -1.7 million after EUR 4.2 million in Q1 2009
- Order backlog of EUR 157.8 million; +17.1% vs. Q1 2009

Hamburg, 28 May 2010 - The first quarter of 2010 of ZhongDe Waste
Technology AG ('ZhongDe', 'the Company', Ticker symbol 'ZEF') was
influenced by a difficult market environment, especially the bad weather
conditions for EPC and BOT plant construction work. Revenues decreased by
65.9% year-on-year to EUR 3.7 million in Q1 2010. Earnings before interest
and tax (EBIT) decreased to EUR -1.7 million (Q1 2009:
EUR 4.2 million) while net profit fell to EUR -2.0 million (Q1 2009: EUR
2.3 million). The order backlog amounted EUR 157.8 million and exceeds the
Q1 2009 figure by EUR 23.0 million,or 17.1%.

The Q1 2010 revenues were generated solely in the BOT segment. We are
currently focusing on large-scale waste-to-energy facilities, because the
small- to medium-size incinerators market has not yet recovered in China.
Since ZhongDe's EPC and BOT construction-in-progress projects are located
in Northern China, we had to interrupt construction work on these projects
during the period of extremely cold weather conditions in the first quarter
of 2010 and during the Chinese Spring Festival vacation. Meanwhile, we
focused on the marketing and negotiation of potential waste-to-energy
project contracts.

The first large-sized waste-to-energy project of ZhongDe - the Datong EPC
project - is operating smoothly. The celebration of successful finish and

smooth operation of Datong waste-to-energy plant will be held by the owner
at the end of June 2010 and the officials from central government and
provincial authorities will attend.

Because of the foreign exchange differences, ZhongDe's equity increased by
EUR 4.8 million to EUR 129.9 million and cash position improved by 2.3%
from EUR 109.2 million at the end of Q1 2009 to EUR 111.7 million at the
end of Q1 2010. The Company maintains a very strong equity ratio of 89.3%.
With the strong cash position and equity ratio, ZhongDe Group maintains its
flexibility on the background of the remaining influence of the
international financial crisis and the economic turmoil. ZhongDe had no
bank debts in Q1 2010, but is currently negotiating bank loans with several
banks in connection with the financing of large-scale BOT projects.

While the order intake was zero, the order backlog amounts to EUR 157.8
million and includes three EPC projects (Zhucheng, Zhaodong and Dingzhou)
and four BOT projects (Zhoukou, Feicheng, Xianning and Kunming).

CEO Mr. Zefeng Chen comments: 'Although this is the first quarterly loss in
ZhongDe's history because of the extremely cold weather in China, the three
EPC and four BOT projects in the order backlog will be finished according
to the timetable. We realize that the future has plenty of risks and
challenges, our management team is confident that we can continue taking
advantage of the huge market potential in the Chinese and international
waste-to-energy market to create values for our shareholders.'

About ZhongDe Group

ZhongDe Group designs, manufactures and installs pyrolytic, grate and
rotary kiln waste incinerators for the disposal of solid municipal,
industrial (including hazardous) and medical waste, as well as complete
sets of incineration plants with electricity generation. Since 1996,
ZhongDe Group has installed approximately 200 waste incinerators in about
13 provinces and more than 80 waste incinerators in the last three
financial years alone. ZhongDe Group acts as one of the leading players of
large-size Waste-to-Energy industry in China.

William Jiuhua Wang
Executive Director and CFO
Phone: +86 (10) 885 98 010
E-Mail: william.jw(at)zhongdetech.com

Li Zhong (Linda)
Investor Relations Manager
Stadthausbrücke 1 - 3
20355 Hamburg
Phone: +49 (0) 40 37644 756
Fax: +49 (0) 40 37644 500
E-Mail: li.zhong(at)zhongde-ag.de

28.05.2010 10:13 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------

Language: English
Company: ZhongDe Waste Technology AG
Stadthausbrücke 1-3
20355 Hamburg
Phone: +49 40 37644 745
Fax: +49 40 37644 500
E-mail: cornelia.dieker(at)zhongdetech.de
Internet: www.zhongdetech.de
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, München, Hamburg, Stuttgart

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Date: 05/28/2010 - 04:13
Language: English
News-ID 1015415
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Firma: ZhongDe Waste Technology AG
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