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ZhongDe Waste Technology AG reports continued healthy growth in Q3 2008

(PresseBox) (Hamburg, ) .
- Revenues increased by 82% to 15.6 million euro in Q3 2008, amounting to 35.7 million euro for the first nine months of 2008, up 51% from the same period in 2007
- Net profit of 18.7 million euro in Q1-3 2008 and 6.5 million euro in Q3 2008, increases of 31% and 17% respectively
- Order backlog increased by 215% to 36.3 million euro
- EPS increases to 0.50 euro in Q3 2008 from 0.43 euro in Q3 2007

ZhongDe Waste Technology AG ("the Company", ticker symbol "ZEF") today announced results for the first nine months of the financial year to 30 September 2008.

Revenues grew strongly to 35.7 million euro in the nine months to end of September 2008, an increase of 51% compared to the same period in 2007, with a contribution of 15.6 million euro in Q3 2008 compared to 8.5 million euro in Q3 2007. Growth was driven primarily by a rise in municipal incinerator sales plus the partial recognition of the large scale Datong EPC (Engineering, Procurement and Construction) project in this quarter.

EBITDA rose by 24% in the first nine months of 2008 to 17.4 million euro compared to 14.0 million euro in 2007 and to 6.4 million euro in Q3 2008 compared to 5.2 million euro in Q3 2007.

The gross margin declined both in the third quarter of 2008 and in the first nine months of 2008 compared to the previous year periods due to the company's focus on larger size orders. In Q3 2008 this was specifically as a result of the gradual recognition of profits from the Datong EPC project. However the increase in order sizes compensated for the lower margin with net profit of the Company continuing to increase with orders for larger projects.

The net profit increased to 18.7 million euro in the nine months to September 2008, compared with 14.4 million euro in the previous year period. In Q3 2008, net profit amounted to 6.5 million euro compared to 5.5 million euro in Q3 2007, an increase of 17%.

Total order intake in the nine months to the end of September 2008 rose to 53.0 million euro, a substantial rise compared to the same period in 2007 at 29.8 million euro. The order backlog as at 30 September 2008 amounted to 36.3 million* euro, an increase of 215% compared to 11.5 million euro in 2007.

Earnings per share amounted to 1.44 euro in the first nine months of 2008, with 0.50 euro in Q3 2008, compared to 1.10 euro and 0.43 euro, respectively in 2007.

The company's net cash position as at 30 September, 2008 amounted to 97.7 million euro compared to 83.9 million euro as at 31 December 2007. The Company is planning to use these funds to establish the Beijing plant and support various BOT projects scheduled to begin in the last quarter of 2008 and early 2009.

The company has implemented various measures to increase production efficiencies such as the upgrading and improving of manufacturing equipment which in turns has improved production capacity.

The company's CEO Zefeng Chen states: "The third quarter for the first time consolidates contributions from the Datong project, the first of larger projects which combine waste disposal and electricity generation. The development of Datong with a total contract volume of approx. 30 million euro shows the Company's ability to secure large orders, which remains the primary growth focus in the future."

The Company is confident that it can continue to take advantage of the huge potential offered by the Chinese waste incineration market, while at the same time exploring opportunities in overseas markets to deliver the results its shareholders expect. All projects are well on track and we reiterate our belief that shareholders will see pleasing results at the end of 2008 with revenues above 50.0 million euro and a net profit margin of above 45%.

*Based on exchange rate euro/RMB as at 30 September 2008.

About ZhongDe Waste Technology AG

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 190 waste incinerators in about 13 provinces, and more than 130 waste incinerators in the last three financial years alone. Its waste incinerators are principally constructed for small and midsized Chinese cities in developed areas of the People's Republic of China, as well as for operators of medical disposal centres in the hospital and healthcare industry. ZhongDe Group is one of the leading suppliers of small and midsized solid waste incinerators in China, supplying state-of-the-art products.

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