DGAP-News: ZhongDe Waste Technology AG / Key word(s): Final Results ZhongDe Waste Technology AG: Successful sale of manufacturing site led to increase in EBIT and net result 29.04.2014 / 09:01 --------------------------------------------------------------------- Annual results 2013 ZhongDe Waste Technology AG: Successful sale of manufacturing site led to increase in EBIT and net result * Revenue decrease of 50.0 per cent to 12.3 million Euros * EBIT improved by 41.0 per cent to -7.4 million Euros * Net result increase of 32.0 per cent to -8.3 million Euros * Strong order backlog * Further increase of cash position to 110.1 million Euros Frankfurt, 29 April, 2014 - Looking back on the financial year 2013, ZhongDe Waste Technology AG was faced with some unexpected circumstances, which led to a delay in finalizing some of ZhongDe's current BOT projects. This affected the financial results in 2013. However, ZhongDe managed to close, sell and develop others of its projects, generating cash flow for the running EPC and BOT projects. ZhongDe's continued strong order backlogs as well as the comfortable cash position enable further investments for ZhongDe's future business. In the financial year 2013 ZhongDe generated revenues of 12.3 million Euros, a year-on-year loss of 50.0 per cent (2012: 24.8 million Euros). This decrease was mainly caused by the delayed progress in the construction of ZhongDe's current BOT projects Kunming and Xianning as well as by the interruption of the construction of the two EPC projects in Zhucheng and Dingzhou. With regard to the fact, that ZhongDe's BOT projects could not be completed as planned due to the unforeseen obstacles, the company had to adjust its revenue evaluation method from percentage of completion to the zero-profit method. Under this method, the revenues have been recorded according to the stage of completion without profit margin since the beginning of the second quarter 2013. The application of the zero-profit method led to a reduction of revenues amounting to 1.5 million Euros in 2013. Gross profit declined from 1.6 million Euros in 2012 to -0.2 million Euros in 2013. Nevertheless, EBIT was improved by 5.1 million Euros or 41.0 per cent to -7.4 million Euros (2012: -12.6 million Euros) mainly due to the successful sale of the manufacturing site for small-size incinerators in Beijing Miyun, which contributed other income of 10.3 million Euros. The net result increased by 32.0 per cent to -8.3 million Euros (2012: -12.2 million Euros). Favorable financial circumstances In the financial year 2013 ZhongDe still had a strong order backlog of 226.1 million Euros. Furthermore, ZhongDe was able to increase its cash position by 10.0 per cent to 110.1 million Euros (2012: 100.3 million Euros). The equity of the company in 2013 amounted to 103.0 million Euros (2012: 112.8 million Euros) corresponding to an equity ratio of 45.0 per cent (2012: 56.0 per cent). Given this positive financial situation and having gained additional long-term project loans from the local banks, ZhongDe is well prepared for future investments. Outlook Looking ahead to its future development, ZhongDe expects to further benefit from the favorable political and economic environment for eco-friendly waste disposal as well as the growing demand for energy-from-waste plants in China. Especially in the context of the new Chinese government concept of a "Beautiful China", aiming to reduce the pollution and to protect the environment in China, energy-from-waste is defined as the most important way of municipal and industrial solid waste disposal. The management of ZDWT currently negotiates with the Chinese government concerning new projects and is confident that more contracts will be closed in 2014 and beyond. Although ZhongDe did not achieve some of its targets set for 2013, including the sale of the Feicheng project, which is now scheduled for 2016, while other projects of ZhongDe developed positively. The two BOT projects in Zhoukou and Xianning have entered into trial operation and are expected to be completed in 2014. The company expects to complete the construction of Kunming project as well in 2014 and to start its trial operation in 2015. Moreover, two EPC projects in Dingzhou and Zhucheng are planned to be finished in 2015. In order to further increase the efficiency of construction processes and improve the controlling of its current projects, ZhongDe plans to implement a new project controlling software, as well as a new accounting and budgeting software. 2014 will still be a transition period for ZhongDe, but due to the planned completion of several projects the management expects a rapid growth in revenues as well as improved operating results in the financial year 2014 although still leading to a loss before taxes. In addition, the group's cash position is supposed to be further stabilized within the financial year 2014. Please find the complete annual report 2013 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 realises 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] End of Corporate News --------------------------------------------------------------------- 29.04.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's 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] Internet: www.zhongde-ag.de ISIN: DE000ZDWT018 WKN: ZDWT01 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 265234 29.04.2014