DGAP-News: ZhongDe Waste Technology AG: Final gross profit rate of Datong EPC project of 26.6%
(firmenpresse) - DGAP-News: ZhongDe Waste Technology AG / Key word(s): Miscellaneous
ZhongDe Waste Technology AG: Final gross profit rate of Datong EPC
project of 26.6%
24.02.2011 / 14:35
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Frankfurt, 24 February 2011 - In consensus with its subcontractors and its
auditors, the ZhongDe Waste Technology AG ('ZhongDe', 'the Company', Ticker
symbol 'ZEF') confirmes, that final gross profit rate of Datong EPC project
is 26.6%. This gross profit rate exceeds the standard rate of ZhongDe (25%)
and the expected rate (24.4%) in 2009 annual report, because RMB 10.4
million (EUR 1.1 million) construction cost provision was cancelled in
2010.
The standard rate of gross profit of ZhongDe energy-from-waste EPC projects
(Engineering, Procurement, Construction) is 25%. And 25% is also the
standard rate of gross profit for ZhongDe energy-from-waste BOT projects
(Build Operate Transfer) during the construction period. The Datong project
construction work was finished at the end of 2009. At that time, ZhongDe
accepted its auditor's opinion and agreed on a provision of RMB 10.4
million (about EUR 1.1million) for covering additional costs that might
occur after the delivery of the project, which was based on the
conservatism principle, because the Datong project was the first
large-scale energy-from-waste plant finished by ZhongDe with a daily waste
disposal capacity of 1000 tons. Since the end of 2009, one year has passed
and no extra costs have occurred. Therefore, ZhongDe decided to dissolve
the RMB 10.4 million provisions for the Datong project at the end of 2010.
This will have a positive effect on the financial statements 2010. As a
result of construction cost reduction, the gross profit rate of the Datong
energy-from-waste EPC project therefore rose from 24.4% to 26.6%.
Unlike the small-size waste disposal project at early stage, such as
Feicheng project with only 200 ton/day waste disposal capacity and no
electricity generation, ZhongDe now is focusing on large-size
energy-from-waste projects like the Datong project. Therefore the Datong
project serves as standard construction cost example for the company. The
final 26.6% gross profit rate proves, that the 25% standard gross profit
rate used by ZhongDe for all its projects is conservative, which can be
achieved and even can be surpassed for ZhongDe large-size projects.
In the process of 2010 and 2011, ZhongDe signed and started construction
work on a rising number of other large-scale energy-from-waste projects.
Followed by the thereby increased quantities of equipment and construction
orders, the bargaining power of ZhongDe against its subcontractors has been
strengthened. Furthermore, ZhongDe focuses on standardizing its
energy-from-waste plant design, construction and operation. The increased
standardization will improve the project quality, shorten the construction
period and reduce the project costs.
Zefeng Chen, founder and CEO of ZhongDe Waste Technology AG comments:
'26.6% gross profit rate for the Datong project proves that ZhongDe is able
to realise remarkable profits from large-scale projects. There are two EPC
and three BOT projects planned to be finished in 2011. These projects are
going to greatly increase ZhongDe's profits in 2011.'
About ZhongDe Group
ZhongDe Group designs, constructs, finances and operates energy-from-waste
incineration plants generating electricity from the disposal of solid
municipal and industrial waste. ZhongDe realises either EPC (Engineering,
Procurement and Construction) or BOT (Build, Operate and Transfer)
projects, focusing on large-scale plants with waste disposal capacities of
around 1000 tons per day. Since 1996, ZhongDe Group has installed
approximately 200 waste incinerators in 13 provinces and more than 80 waste
incinerators in the last three financial years alone. ZhongDe is one of the
leading players in the project development and operation of large-size
energy-from-waste plants in China.
Contact
William Jiuhua Wang
Executive Director and CFO
E-Mail: william.jw(at)zhongdetech.com
Ying Sun
Assistant IR Manager
Herriotstr. 1
60528 Frankfurt am Main
Germany
T: +49 69 67733 172
F: +49 69 67733 200
E-Mail: ying.sun(at)zhongde-ag.de
Kirchhoff Consult AG
Nicole Schüttforth
Investor Relations Consultant
T: +49 40 60 91 86 64
F: +49 40 60 91 86 60
E-Mail: nicole.schuettforth(at)kirchhoff.de
End of Corporate News
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24.02.2011 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
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Language: English
Company: ZhongDe Waste Technology AG
Stadthausbrücke 1-3
20355 Hamburg
Deutschland
Phone: + 49 69 67733 172
Fax: + 49 69 67733 200
E-mail: ying.sun(at)zhongde-ag.de
Internet: www.zhongde-ag.de
ISIN: DE000ZDWT018
WKN: ZDWT01
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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113362 24.02.2011
Datum: 24.02.2011 - 14:35 Uhr
Sprache: Deutsch
News-ID 33296
Anzahl Zeichen: 0
contact information:
Kategorie:
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