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ZhongDe Waste Technology AG: Strong year-on-year improvement of financial results in the first nine months 2014

DGAP-News: ZhongDe Waste Technology AG / Key word(s): Quarter Results
ZhongDe Waste Technology AG: Strong year-on-year improvement of
financial results in the first nine months 2014

28.11.2014 / 08:21

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Results 9M 2014

ZhongDe Waste Technology AG: Strong year-on-year improvement of financial
results in the first nine months 2014

* Revenue grew by 54.9 per cent to 11.5 million Euros
* EBIT increased by 40.4 per cent
* Improved net result of -5.5 million Euros
* Financial outlook confirmed

Frankfurt, 28 November 2014 - The first nine months of 2014 remained a
challenging transition period for ZhongDe Waste Technology AG.
Nevertheless, ZhongDe succeeded in improving its financial results
compared to the previous year period.

During the third quarter 2014 the contribution out of ZhongDe's current BOT
and EPC projects amounting to 6.9 million Euros continued to increase.
While ZhongDe's two current EPC projects Zhucheng and Dingzhou contributed
3.9 million Euros to the total group revenues, BOT projects contributed
3.0 million Euros. Thus revenues in the first nine months of 2014 increased
significantly by 54.9 per cent to 11.5 million Euros (9M 2013: 7.4 million
Euros).

Especially the trial run revenues from the advanced stage BOT projects and
the progress of the EPC projects had a positive impact on ZhongDe's gross
profit, which went up from -0.7 million Euros in the first nine months of
2013 to 2.4 million Euros in the first nine months of 2014. Accordingly,
gross profit margin improved by 30 percentage points to 21 per cent (9M
2013: -9 per cent). EBIT reached -3.1 million Euros (9M 2013: -5.1 million
Euros) - a plus of 40.4 per cent. Net result slightly improved to -5.5
million Euros (9M 2013: -5.8 million Euros).

High order backlog and still strong cash position

Due to the project progress partly compensated by foreign currency
translation ZhongDe's order backlog decreased by 2.6 per cent to 231.9
million Euros (9M 2013: 237.2 million Euros).

As at 30 September 2014, ZhongDe still maintains a strong cash position of
89.2 million Euros (31 December 2013: 110.1 million Euros). Besides the
regular cash outflow due to the company's normal operation, the decrease in
cash position was also caused by repayment of principal and interest for
the loans of BOT projects.

Financial outlook remains unchanged

With regard to the full year of 2014 ZhongDe maintains its outlook given at
the end of June in its half-year report 2014. Thus, the company expects