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ZhongDe Waste Technology AG reports strong growth in Q1 2008
- Q1 revenues increased by 52% yoy to € 11.2 million
- Net profit climbed to € 7.0 million, an advance of 71% yoy
- Order intake increased by 365% yoy to € 44.0 million
- Earnings per share increased by 69% yoy to € 0.54 per share
- Continued strategic focus on municipal solid waste incinerators of larger scales
ZhongDe Waste Technology AG ('the Company') today announced its Q1 2008 results which continue to reflect the Company's strong growth profile.
The Company achieved revenues of € 11.2 million in Q1 2008, an increase of 52% compared to € 7.4 million in the same period of the previous year. Growth was driven by a significant rise in municipal incinerator sales which amounted to € 10.7 million in Q1 2008 compared to € 3.5 million in Q1 2007, an increase of 208%, which now amount to 96% of the Company's total sales, compared to 47% in Q1 2007. A total of four municipal solid waste incinerators were sold in Q1 2008 compared to two in Q1 2007. Revenues in the medical waste incinerator segment declined from € 3.9 million in Q1 2007 to k€ 462 in Q1 2008 due to the company focusing on the strongly growing municipal solid waste incinerator segment.
Operating results in the first quarter of 2008 rose significantly, fuelled by the upward trend in the municipal solid waste incinerator segment. As a result gross profits increased from € 4.8 million in Q1 2007 to € 7.7 million in Q1 2008, an increase of 61%. EBITDA rose by 57% from € 4.1 million in Q1 2007 to € 6.5 million in Q1 2008, with an increase in the EBITDA margin from 56% to 58% in the respective periods. The net profit increased from € 4.1 million in Q1 2007 to € 7.0 million in Q1 2008, an increase of 71%, with the underlying net profit margin increasing from 56% in Q1 2007 to 63% in Q1 2008.
Orders continue to rise strongly in the municipal incinerator segment - during the Q1 2008 period, the Company received orders for contracts worth € 44 million compared to € 9.5 million in the same period last year and resulted in an order backlog of € 54.1 million in Q1 2008 compared to € 9.5 in Q1 2007.
Furthermore, the Company achieved a strong rise in EPS to € 0.54, compared to € 0.32 in Q1 2007 resulting from the strong sales growth and continued tight cost controls.
The Company's net cash position as at March 31, 2008 was € 86.6 million compared to € 83.8 million as at December 31, 2007.
In the period under review the Company has signed general contracts for the Datong waste disposal and electricity generation project with the total contract value amounting to approximately € 30 million. This is the Company's first major project to also include electricity generation on a large scale.
In view of the strong growth already recorded in this financial year, the Company has stepped up its recruitment by hiring some 12 skilled production workers which will help to ensure the timely delivery of the Company's products to customers.
CEO Zefeng Chen comments: "We are pleased that our strong growth profile is reflected in these Q1 2008 financial results - the market continues to be buoyant and we are successfully positioning ourselves as a major player in the waste incineration market in China with a strategy that focuses on larger scale incinerators. To this end, we are investing in R&D, have stepped up our recruitment programme and are pleased that our second production facility in Beijing is now in the construction stage. Together these efforts enable the Company to take advantage of the enormous potential and our outlook for the year remains strongly positive."
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