ZhongDe Waste Technology AG Continues to Grow in Q3 2007

Puntúa la noticia :

Nota de los usuarios: - (0votos)

• Bolsa, mercados y cotizaciones
• Empresas y finanzas

Share

Tweet

elEconomista.es en Twitter

Follow @eleconomistaes

EcoTablet - ¡Gratis en App Store!

La plataforma más completa de información y servicios económicos para iPad.

• Suscribirse al boletín
• Imprimir
• Enviar
• Aumentar texto
• Reducir texto
• Haga doble click sobre una palabra para ver su signifcado
• Sudoku: Juega cada día a uno nuevo
• El tiempo: Consulta la previsión para tu ciudad

The information contained in this document is not for publication
or distribution in the United States of America.

ZhongDe Waste Technology AG (´the Company´) today announced its Q3
2007 results which reflect the Company`s continuing growth and
utilisation of the positive effects of the IPO on the Prime Standard
of Frankfurt Stock Exchange in July 2007.

The Company achieved revenues of EUR 8.5 million in Q3 2007, an
increase of 33% compared to EUR 6.4 million in the same period of the
previous year. Growth was driven primarily by a rise in municipal
incinerator sales. Municipal waste incinerator sales represented 68%
of the Company´s total sales in Q3 2007 compared to 37% in Q3 2006
reflecting the strategic focus on larger scale municipal solid waste
incinerators. A total of four municipal solid waste incinerators were
sold in Q3 2007 compared to one in Q3 2006. Revenues in this segment
in Q3 2007 increased by 142% to EUR 5.8 million versus EUR 2.4 million
in Q3 2006. During the same period, gross profits increased from EUR
1.6 million to EUR 3.9 million, an increase of 142%. Sales in the
medical waste incinerator segment declined by 33% to EUR 2.7 million
in Q3 2007 compared to EUR 4.0 million in the same period of the
previous year. This was primarily due to a successfully implemented
programme of product mix restructuring in favour of the municipal
waste incinerator segment.

Operating results in the third quarter of 2007 also rose, fuelled
by an upward trend in the municipal solid waste incinerator segment.
As a result gross profits increased from EUR 4.6 million in Q3 2006 to
EUR 6.1 million in Q3 2007. The overall margin remained almost
unchanged at 71% in Q3 2007 versus 72% in Q3 2006. This slight
reduction was a result of the increase in municipal waste incinerator
sales which have an average gross margin of 67%. The net result
increased from EUR 2.8 million in Q3 2006 to EUR 5.5 million in Q3
2007, an increase of 95%.The net profit margin climbed to 65% in Q3
2007 (Q3 2006: 44%) due to effective cost control and tax exemption
for FY 2007. Furthermore, the net result for the first nine months
rose by 147% from EUR 5.8 million in 2006 to EUR 14.4 million in the
first nine months of 2007 as a result of the rise in municipal waste
incinerator sales.

Order intake and backlog saw further strong development compared
to the same period in the previous year: Total order intake in Q3 2007
amounted to EUR 10.8 million compared to EUR 4.4 million in the same
period of the previous year, an increase of 143%, and resulted in an
order backlog of EUR 11.5 million (Q3 2006: EUR 5.1 million).
Specifically, following the IPO, the Company successfully built on the
strength of its brand image in incineration technology and proven
financial capabilities, which has allowed it to profit from the demand
for municipal solid waste incinerators, particularly large
incinerators. As at Q3 2007, the main increase in order intake was
derived from two LCH-200 incinerators with a daily capacity of 200
tons and a total contract value of EUR 7.0 million.

Furthermore, the Company achieved a strong rise in EPS resulting
from the strong sales growth, continued tight cost controls and tax
exemption for 2007. EPS amounted to EUR 0.43 in Q3 2007, up from EUR
0.22 in Q3 2006. For the first nine months of 2007, EPS climbed to EUR
1.10 compared to EUR 0.45 in the first nine months of 2006.

The Company`s net cash position as at September 30, 2007 was EUR
86 million compared to EUR 8.5 million as at December 31, 2006. This
is directly attributable to the proceeds of the IPO which raised EUR
72 million in July 2007.

The Company´s growth strategy, defined before the IPO, has been to
enhance its solid market position for small to medium-sized municipal
solid waste incinerators by selling equipment with larger processing
capacities and implementing BOT (build - operate - transfer) projects.
The strategy is continuing on track and is reflected in Q3 sales and
financials, especially in the segment for larger solid waste
incinerators.

Against the background the Company continues to use the proceeds
of the IPO as announced at the time: Having secured land usage rights
for the new site just outside Beijing, the second production plant is
on track for completion next year. First production is scheduled to
commence in the autumn of 2008. Furthermore the Company was approached
by several major institutional banks in China after the IPO proposing
to finance the Company on the BOT projects. In November, a cooperation
agreement with a major Chinese bank was signed to establish a general
framework for potential future funding of BOT projects. The Company
believes the signed agreement will serve to underline the long-term
financial standing of the Company and will also secure both the timing
and implementation of the four remaining BOT projects, which are well
on track in Changzhi, Guilin, Jianou and Wuxiang. Letters of intent
were already signed prior to the IPO and are expected to be finalised
in the near future. These projects are expected to have a positive
effect on Company revenues and results as of 2009.

CEO Zefeng Chen comments: "Following our IPO at the Frankfurt
Stock Exchange in July we successfully embarked on our long term
strategy to increase our sales for larger incinerators, whilst
maintaining strong profit margins through tight cost control.
ZhongDe`s robust technology standing, the positive influence of the
IPO on the Company´s brand and image, and the Company´s enhanced
profile in the business community continue to fuel our competitive
advantage. The rising number of customer enquiries and Government
moves to improve environmental protection in China indicate that
demand will continue to grow. As a result we anticipate sound results
for the end of 2007 and beyond."

-0-
*T
Key Financial Highlights
----------------------------------------------------------------------
Nine Nine
Operational data in months months
k EUR Q3 2007 Q3 2006 Change 2007 2006 Change
----------------------------------------------------------------------
Order intake 10,809 4,449 +143% 29,754 15,883 +87%
----------------------------------------------------------------------
Order backlog 11,515 5,077 +127% 11,515 5,077 +127%
----------------------------------------------------------------------
Revenues 8,541 6,444 +33% 23,558 14,002 +68%
----------------------------------------------------------------------
Gross profit 6,058 4,647 +30% 16,115 9,853 +64%
----------------------------------------------------------------------
Gross profit margin 71% 72% 68% 70%
----------------------------------------------------------------------
Cost of sales 2,483 1,797 +38% 7,443 4,150 +79%
----------------------------------------------------------------------
EBITDA 5,190 4,229 +23% 13,978 8,783 +59%
----------------------------------------------------------------------
EBITDA margin 61% 66% 59% 63%
----------------------------------------------------------------------
EBIT 5,175 4,219 +23% 13,939 8,754 +59%
----------------------------------------------------------------------
EBIT margin 61% 65% 59% 63%
----------------------------------------------------------------------
Net profit 5,547 2,841 +95% 14,356 5,821 +147%
----------------------------------------------------------------------
Net profit margin 65% 44% 61% 42%
----------------------------------------------------------------------
Earnings per share 0,43 0,22 1,10 0,45
----------------------------------------------------------------------
*T

About ZhongDe Group:

ZhongDe Group designs, manufactures and installs pyrolytic, grate
and rotary kiln waste incinerators for the disposal of solid medical,
municipal and industrial (including hazardous) waste. Since 1996,
ZhongDe Group has installed approximately 180 waste incinerators in
about 13 provinces, and more than 120 waste incinerators in the last
three financial years alone. Its waste incinerators are principally
constructed for operators of medical disposal centres in the hospital
and healthcare industry, as well as for small and midsized Chinese
cities in developed areas of the People´s Republic of China. ZhongDe
Group is one of the leading suppliers of small and midsized solid
waste incinerators in China, supplying state-of-the-art products.

This document constitutes neither an offer to sell nor a
solicitation to buy securities of ZhongDe Waste Technology AG. The
securities have already been sold.

This document is not an offer of securities for sale in the United
States of America. Securities may not be offered or sold in the United
States of America absent registration or an exemption from
registration under the U.S. Securities Act of 1933, as amended. The
shares in ZhongDe Waste Technology AG have not been and will not be
registered under the U.S. Securities Act of 1933, as amended, and are
not being and will not be offered or sold in the United States of
America.

This document is directed at and/or for distribution in the U.K.
only to (i) persons who have professional experience in matters
relating to investments falling within article 19(5) of the Financial
Services and Markets Act 2000 (Financial Promotion) Order 2005 (the
"Order") or (ii) high net worth entities falling within article
49(2)(a) to (d) of the Order (all such persons being together referred
to as "relevant persons"). This document is directed only at relevant
persons. Any person who is not a relevant person should not act or
rely on this document or any of its contents. Any investment or
investment activity to which this document relates is available only
to relevant persons and will be engaged in only with relevant persons.

PUBLICIDAD

- Recibe nuestros análisis Diarios sobre Divisas, Acciones y Opciones. ¡Apúntate ya! ¡Es GRATIS!

- Opere en más de 8.000 CFDs. Infórmese y obtenga su CFD Trading Guide

- Nuevos spreads en materias primas: Oro tan sólo 0,3 puntos, Plata 0,25, Petróleo 0,35

- Opera desde 2,95 € en tiempo real con Self Bank.