DGAP-News

ZhongDe Waste Technology AG expects improved project progress for the second half of 2015

DGAP-News: ZhongDe Waste Technology AG / Key word(s): Half Year
Results
ZhongDe Waste Technology AG expects improved project progress for the
second half of 2015

28.08.2015 / 08:14

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Results H1 2015

ZhongDe Waste Technology AG expects improved project progress for the
second half of 2015

* Strong revenue increase of 77.6 per cent
* EBIT went up from -2.8 million Euros to -2.7 million Euros
* Further improvement during the second half of the year expected

Frankfurt, 28 August 2015 - Thanks to a strong first quarter 2015, ZhongDe
Waste Technology AG ("ZhongDe") recorded a significant year-on-year revenue
increase by 77.6 per cent to a total of 8.1 million Euros (H1 2014: 4.6
million Euros) in the first half-year 2015. Thereby, the BOT projects
contributed the largest part with revenues of 7.4 million Euros (H1 2014:
2.2 million Euros), while the EPC projects contributed 0.7 million Euros
(H1 2014: 2.4 million Euros) to total revenues.

Since the prevailing part of revenues relates to BOT projects, where the
zero-profit-method is applied, the stage of completion of these projects
has no influence on the gross profit. Therefore, gross profit amounted to
-1.1 million Euros (H1 2014: 0.2 million Euros) despite the strong revenue
increase. The gross profit decrease was mainly due to the fact that
inventories relating to the incinerator segment amounting to 0.8 million
Euros had to be written off in the second quarter of 2015.

EBIT went slightly up to -2.7 million Euros (H1 2014: -2.8 million Euros).
The EBIT margin increased by 27 percentage points to -34 per cent (H1 2014:
-61 per cent). In total, the group's net result improved to -4.2 million
Euros in the first half of 2015 (H1 2014: -4.4 million Euros).

As at 30 June 2015, ZhongDe's equity position went up by 4.9 per cent to
118.4 million Euros (31 December 2014: 112.9 million Euros). The equity
ratio amounted to 44.5 per cent (31 December 2014: 45.3 per cent).

Cash and cash equivalents amounted to 86.4 million Euros as at 30 June
2015, a decrease of 0.9 per cent compared to 87.2 million Euros as at 31
December 2014. The largest part of the group's existing funds are planned
to be invested in budgeted projects such as the BOT project in Lanzhou and
others.

Further improvement in the second half of the year expected

The management expects that the coming quarters in 2015 will still remain a
transition period for the company. Nevertheless, revenues and other results
are expected to increase compared to the corresponding quarters in 2014. In
the second half of 2015 the construction progress of ZhongDe's EPC projects