China Xd Plastics Company Limit (OTC:CXDC)

Fourth Quarter 2019 Financial Results

• Revenues were $310.5 million for the fourth quarter of 2019, compared to $349.8 million for the same period of 2018, representing a decrease of $39.3 million, or 11.2%. 
• Basic and diluted losses per share for the fourth quarter of 2019 were both US$0.97, compared to US$0.20 earnings per share per share for the same period of 2018.
  

"Our fiscal 2019 results were consistent with the overall slow recovery of China auto industry,' said Jie Han, Chairman of the Board of Directors and Chief Executive Officer. 'The trade tension between China and United States, the stricter environmental protection standard, and larger reduction of subsidies on new energy vehicles, have generated a lot of pressure on the entire auto industry in China, resulting in depressed domestic demand. China XD has taken proactive measures to respond these changes. Since the second quarter of 2019, we have achieved revenues by increased sales of new categories of higher-end products of PA66 and PA6 produced with high-priced raw materials with higher selling price in domestic market; and sales of high-priced semi-finished goods in domestic market to accelerate inventory turnover and replenish operating funds. We are pleased to see an overall increase of 45.9% in the average RMB selling price of our products, partially offset the decreased sales volume of 18.8% for the year ended December 31, 2019. At the same time, the Company has achieved a rapid increase of customer orders in non-automobile applications, evidenced by our stable sales growth in several domestic regions."

"For 2020, the COVID-19 has caused a sharp fall in production and sales of the Chinese automotive industry, with the risk of supply disruption of some parts of the domestic automobile industry increased. As a result, China XD has responded to start producing raw materials for PPE such as goggles and masks, to help alleviate the pandemic to our communities and mitigate the negative impact of world pandemic on Chinese auto industry."

"We are committed to complete industrial project for upgrading existing equipment for 100,000 metric tons of engineering plastics by the end of second quarter of 2020, and our Qinling Road Project and Jiangnan Road Project for equipment upgrade and factory revamping by the end of the third quarter of 2020, thus bringing the production capacity in Heilongjiang Campus back to 390,000 MT. At the same time, we expect to complete additional 10 production lines our Sichuan plant by the end of the third quarter of 2020, thus to bring the total capacity of Sichuan base to 300,000 MT. Together with the production capacity ramp up in Dubai, we will continue to remain our ability to make further inroads into more specialized high-end products for various important new markets"

"We will continue to optimize our management structure and enhance our operating efficiency. And we are confident, through our cooperation with Chinese big banks to succeed Company's expansion strategy in multiple regions and sectors, and to be confident with our core market positioning and expanded platform for growth." Mr. Han concluded.

Financial Guidance and Business Outlook

As a result of the outbreak of COVID-19 in the PRC, China Auto Industry production and sales drastically decreased by 33.4% and 31.14% for the first four months of 2020, according to the China Association of Automobile Manufacturers. It has a ripple effect and impact throughout China auto supply chain, including the Company. 

Due to the fact that the Company had temporarily closed its manufacturing facilities and offices in the PRC in accordance with the requirement of the PRC government, the occurrence of the ongoing COVID-19 pandemic has had a material adverse effect on our business operations. In light of these circumstances and continuing uncertainties, the Company will not be able to forecast our financial guidance for fiscal 2020 until further notice.

HARBIN, China, May 11, 2020 /PRNewswire/ -- China XD Plastics Company Limited (NASDAQ: CXDC) (the "Company"), one of China's leading specialty chemical companies engaged in the development, manufacture and sale of polymer composite materials primarily for automotive applications, today announced that its board of directors (the "Board") has formed a special committee (the "Special Committee") consisting of three independent and disinterested directors, Linyuan Zhai, Huiyi Chen and Guanbao Huang, with Huiyi Chen serving as the chairperson of the Special Committee, to consider and evaluate the previously announced preliminary non-binding "going private" proposal received by the Board on May 8, 2020. The Special Committee has been authorized by the Board with the power to retain independent advisors, including independent legal and financial advisors, to assist it in its review and evaluation of the proposed transaction.

The Board cautions the Company's shareholders and others considering trading the Company's securities that no decisions have been made by the Special Committee with respect to the Company's response to the proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.

HARBIN, China, May 8, 2020 /PRNewswire/ -- China XD Plastics Company Limited (NASDAQ: CXDC) (the "Company"), one of China's leading specialty chemical companies engaged in the development, manufacture and sale of polymer composite materials primarily for automotive applications, today announced that its board of directors (the "Board") has received a preliminary and non-binding proposal letter, dated May 7, 2020, from (i) Mr. Jie Han ("Mr. Han"), the Company's Chairman and Chief Executive Officer, and (ii) XD. Engineering Plastics Company Limited (together with Mr. Han, the "Buyer Group"), a company incorporated in the British Virgin Islands and wholly owned by Mr. Han, proposing to acquire all of the outstanding shares of common stock (the "Shares") of the Company not currently owned by the Buyer Group in a "going-private" transaction for US$1.1 per Share in cash, subject to certain conditions. The US$1.1 per Share price represents a premium of approximately 19.6% to the closing price of the Company's Shares on May 6, 2020, a premium of approximately 19.5% to the average closing price of the Company's Shares during the last 30 trading days, and a premium of approximately 4.9% to the average closing price of the Company's Shares during the last 60 trading days. 

The Buyer Group currently beneficially owns the Shares representing approximately 70% of the voting power and approximately 50.1% of the share capital of the Company. The Buyer Group has engaged O'Melveny & Myers LLP as its U.S. legal advisor for the proposed transaction. According to the proposal letter, the Buyer Group plans to finance the acquisition with a combination of debt and equity capital. The proposal letter states that the equity portion of the financing would be provided by the Buyer Group in the form of cash and rollover equity in the Company and through available cash at the Company, and that the debt portion of the financing would be provided by loans from third party financial institutions, if required. A copy of the proposal letter is attached hereto as Annex A.

The Company has retained Wilson Sonsini Goodrich & Rosati, Professional Corporation as its U.S. legal counsel in connection with the potential "going-private" transaction contemplated by the proposal letter. Additionally, the Board intends to form a special committee of independent directors (the "Special Committee") to consider this proposal. The Board expects that the Special Committee will retain independent advisors, including an independent legal and financial advisor, to assist it in its review of the proposed transaction.

The Board cautions the Company's shareholders and others considering trading the Company's securities that the Board has just received the proposal letter and has not had an opportunity to carefully review and evaluate the proposal or make any decision with respect to the Company's response to the proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.

HARBIN, China, Feb. 18, 2020 /PRNewswire/ -- China XD Plastics Company Limited (NASDAQ: CXDC) ("China XD Plastics" or the "Company"), one of China's leading specialty chemical companies engaged in the development, manufacture and sale of polymer composite materials primarily for automotive applications, today announced that it has received the formal notification from the Listing Qualifications Department of The NASDAQ Stock Market ("NASDAQ") on February 13, 2020, informing the Company that it now complies with Listing Rule 5620, which requires that the Company holds an annual meeting of shareholders within twelve months after the end of a company's financial year.

On January 2, 2020, NASDAQ notified the Company that it did not comply with Listing Rule 5620. On February 11, 2020, the Company held its annual meeting of shareholders.

Third Quarter 2019 Financial Results

• Revenue was $373.2 million, an increase of 25.6% YoY and a decrease of 19.4% sequentially
• Net income was a net income of US$17.0 million in the third quarter of 2019 compared to a net income of US$9.0 million in the same quarter of 2018, representing an increase of US$8.0 million, or 88.9%. Basic and diluted earnings per share for the three-month period ended September 30, 2019 were both US$0.25, compared to US$0.13 basic and diluted earnings per share for the same period of 2018.

Our third quarter 2019 results were consistent with the continuous downturn in the auto industry of China since the summer of 2018," said Jie Han, Chairman of the Board of Directors and Chief Executive Officer." China's automobile industry has been negatively affected by lackluster consumer demand in the domestic market, pressure from the newly issued and more stringent emission standards and a slash in subsidies to alternative energy vehicles. Yet to come is the trend reversal of automobile demand in China.  Amid the negative growth environment, the small and medium-sized competitors of our industry in China have experienced difficulty to fulfill customers' orders due to reasons such as changing financial conditions and tougher environmental policies. As a result, customers have started redirecting their orders to larger suppliers such as China XD. During the third quarter of 2019, the Company was able to successfully leverage the increasing customer demand and up-sell its high-end products produced with higher-priced raw materials in China, as well as achieving the rapid increase of customer orders in non-automobile fields, evidenced by our  stable sales growth in several domestic regions."  

"Meanwhile, China XD continued to optimize its management structure and enhancing efficiency, resulting in decreased expenses and enhanced net income. We are pleased with our good results.

"Last month the Company has achieved  a consortium led by ICBC, the world largest commercial bank by assets,  which speaks volume of the confidence that world leading financial institutions in our business and brand, This will help us to succeed Company's expansion strategy in multiple regions and sectors. We will be more fiscally vigilant and responsible and stabilize our capital structure by replacing more short term debts with longer term instruments, among other means, in order to maintain a stable and sound balance sheet and weather potential and unexpected turbulence in the future."

"We are committed to completing our industrial project in Heilongjiang base for upgrading existing facilities of 100,000 metric tons capacity of engineering plastics in the fourth quarter of 2019, with relevant equipment on board. Together with the production capacity ramp up in Dubai, we will continure to remain our ability to make further inroads into more specialized high-end products for various important new markets,  and to be confident with our core market positioning and expanded platform for growth," Mr. Han concluded.

HARBIN, China, Oct. 3, 2019 /PRNewswire/ -- China XD Plastics Company Limited (CXDC) ("China XD Plastics" or the "Company"), one of China's leading specialty chemical companies engaged in the development, manufacture and sale of polymer composite materials primarily for automotive applications, today announced that Xinda Holding (HK) Company Limited ("Xinda Holding"), a subsidiary of the Company, has entered into a US$135,000,000 Facility Agreement (the "Facility Agreement"), dated October 2, 2019, with a Banks Consortium (the "Consortium") led by the Industrial and Industrial and Commercial Bank of China (Macau) Limited ("ICBC") as mandated lead arranger and the lending syndicate includes Industrial and Commercial Bank of China (Macau) Limited, Standard Chartered Bank (Hong Kong) Limited, China CITIC Bank International Limited, Ping An Bank Company Ltd. China (Shanghai) Pilot Free Trade Zone Branch, Bank of Shanghai (Hong Kong) Limited, Nanyang Commercial Bank, Limited, Shanghai Rural Commercial Bank Zhangjiang Hi-Tech Sub Branch, China Minsheng Banking Corp., Ltd., Hong Kong Branch, and Tai Fung Bank Limited.

According to the terms of the Facility Agreement, the Consortium will provide Xinda Holding up to US$135 million. The Facility carries an interest rate at 2% per annum over LIBOR payable every three months. The 364-day term loan facility will primarily be used to refinance certain of Xinda Holding's outstanding debt as well as to pay fees, costs and expenses relating to the refinancing.

"Working with a consortium led by ICBC, the world largest commercial bank by assets, speaks volume of the confidence that world leading financial institutions have in our business and brand," commented Mr. Jie Han, Chairman and Chief Executive Officer of China XD Plastics. "This financing will provide additional liquidity and financial stability to our company. We look forward to broader long-term cooperation with ICBC and other banks of the Consortium. In the past few years, ICBC has been leveraging its global service network to actively provide comprehensive financial support for Chinese companies going global and China's "One Belt and One Road" initiative. ICBC's overseas network has been extended to 42 countries and territories over the world, ranking the first among all Chinese-funded financial institutions in terms of global network coverage."

Second Quarter 2019 Financial Results

• Revenue was 463.1 million, an increase of 46.0% YoY and an increase of 53.6% sequentially
•  Basic and diluted earnings per share for the three-month period ended June 30, 2019 were $0.60, compared to $0.41 per basic and diluted share for the same period of 2018.

"We are pleased with our quarterly results with significant top and bottom line growth." said Jie Han, Chairman of the Board of Directors and Chief Executive Officer. "During the first half of this year, we have witnessed weakness in both production and sales of China's auto industry, trending low for 12 consecutive months. Amid the negative growth environment, the small and medium-sized competitors of our industry in China have experienced difficulty to fulfill customers' orders due to reasons such as changing financial conditions and tougher environmental policies. As a result, customers have started redirecting their orders to larger suppliers such as China XD. During the second quarter of 2019, the Company was able to successfully leverage the increasing customer demand and up-sell its high-end products produced with higher-priced raw materials in China, evidenced by our  stable sales growth in all domestic regions.  This makes us well positioned to execute our strategic plan for 2019."   

"We are particularly pleased to see more revenue contributions from our successful trial production at our production base in Dubai, a positive sign in our effort of penetrating international market with our high-end products. The growing sales overseas during the second quarter of 2019 broadened our geographical reach to customers in Europe, Middle East, and other international regions. We will strive to work with global high-quality customers in automotive sector and other new fields."

"We take pride of our achievement in the past and remain confident the long term prospect of our business. Chinese government has recently issued supportive policies toward non-state-owned enterprises. This will drive the success of the Company's expansion strategy in multiple regions and sectors. We will be more fiscally vigilant and responsible and stabilize our capital structure by replacing more short term debts with longer term instruments, among other means, in order to maintain a stable and sound balance sheet and weather potential and unexpected turbulence in the future."

We are committed to completing our industrial project in Heilongjiang base for upgrading existing facilities of 100,000 metric tons capacity of engineering plastics in the fourth quarter of 2019. Together with the production capacity ramp up in Dubai, we remain confident in our ability to make further inroads into more specialized high-end products for various important new markets."

"We believe that our increased production capabilities in Heilongjiang and Dubai, geographical expansion and more diversified customer base both strengthen and augment our core automotive business.  Further, our new development projects, which leverage our technical expertise, could lead to additional new business. We view ourselves as the leader in the polymer composites sector, which will enable us to provide innovative technology solutions for China's modernizing transportation, energy, healthcare and industrial sectors. We reiterate our financial guidance for fiscal 2019 and continue to be excited by our core market positioning and expanded platform for growth," Mr. Han concluded.

First Quarter 2019 Financial Results

• Revenue was $301.5 million, a decrease of 2.9% YoY
• Basic and diluted earnings per share for the three-month period ended March 31, 2019 were $0.16, compared to $0.29 per basic and diluted share for the same period of 2018.

"Our first quarter 2019 results are consistent with the declining trend of the Chinese auto industry though the declining trend becomes narrower during the first quarter of 2019. Besides increased sales of higher-end products such as modified POM and PPO, the Company started sales of new categories of  higher-end products of PA66 and PA6 produced with high-priced raw materials for higher selling price in China, leading to an increase of sales price in domestic market by 14.3%." said Jie Han, Chairman of the Board of Directors and Chief Executive Officer.

"Our successful trial production at our production base in Dubai has brought us prospect in international sales targeting high-end products. We are working hard to complete the equipment installation and testing of our industrial projects in Heilongjiangbase for upgrading existing equipment for 100,000 metric tons of engineering plastics by the end of the third quarter of 2019. These are our strategic plans of producing specialized high-tech products for various important new markets, targeting high-end products for new markets, which will ultimately enable more active inroads into various product applications and other market regions."

"China XD continues to value our deep working relationships with our customers above all, and is committed to creating value with our culture of hard work and innovation.  We anticipate that the continuing execution of our strategic plan supported by an increase in our production capacity, our entry into new markets, a diversified customer base and a diversification with international sales will help to generate business growth for years to come.  For fiscal 2019, we are reiterating our financial guidance of $1.3 -$1.6 billionin revenue, $90- $110 million in net income ."  Mr. Han concluded.

Fourth Quarter 2018 Financial Results

• Revenue was $349.8 million, a decrease of 18.2% YoY and an increase of 17.7% sequentially.
• Net income was US$13.0 million for the fourth quarter of 2018, compared to net loss of US$20.5 million for the same period of 2017, representing an increase of US$33.5 million, or 163.4%. Basic and diluted earnings per share for the fourth quarter of 2018 were both US$0.20, compared to US$0.31 losses per share per share for the same period of 2017.

"Our fiscal 2018 results were consistent with the less anticipated severe slowdown in China auto industry, the first drop in 28 years," said Jie Han, Chairman of the Board of Directors and Chief Executive Officer. "In addition, the reduction of duty on import vehicles by an average of 46% is expected to have profound impact on the entire auto industry in China. Although we applaud the implementation of such supply side reform by the policy makers for the wellbeing of the long term benefit of China auto industry, it will have short term impact to the auto market as companies throughout the supply chain when they are adjusting themselves and adapting to such change. We are pleased with our successful trial production at our production base in Dubai and remain optimistic about our business expansion overseas, especially after positive results and feedbacks after product trial runs from customers in various countries and regions overseas."

Financial Guidance and Business Outlook

During fiscal year 2018 China auto market has experienced an unexpected and unprecedent turn with both numbers of car produced and sold plummeted. The results from China Auto Industry Association came drastically below its early expectation. It has a ripple effect and impact throughout China auto supply chain, including the Company.

In light of the foregoing changing market condition and the macro economic environment in China, the successful trial run in Dubai resulting in new production capacity to be added, our expansion into to new markets overseas, diversified customer base and escalation of sales categories, the Company projects revenue for fiscal 2019 to range between $1.3 and $1.6 billion in revenue. Gross margin in fiscal 2019 is expected to remain stable as compared to that of fiscal 2018. The Company projects net income to range between $90 and $110 million. It also assumes the average exchange rate of the US dollar to RMB at 6.8. This financial guidance reflects the Company's current view of its business outlook for fiscal 2019 and is subject to revision based on changing market conditions at any time.

HARBIN, China, April 1, 2019 /PRNewswire/ -- China XD Plastics Company Limited (CXDC) ("China XD Plastics" or the "Company"), one of China's leading specialty chemical companies engaged in the development, manufacture and sale of polymer composite materials primarily for automotive applications, today announced that it has filed a Form 12b-25 (the "Filing") with the Securities and Exchange Commission indicating that it will not be in a position to file its Quarterly Report on Form 10-K for the year ended December 31, 2018 within the 15-day extension period provided in Rule 12b-25(b) under the Securities Exchange Act of 1934.

The Company is in the process of preparing and reviewing the financial information and compiling and disseminating the information to be included in the Form 10-K for the period ended December 31, 2018, as well as the completion of the required review of the Company's financial information, none of which could be complete by the date required without incurring undue hardship and expenses.

The Company expects to file the Annual Report on Form 10-K within the fifteen-day following extension period provided by this Form 12b-25 and new earnings conference call coordinates will be forthcoming and provided in a separate press release prior to the Form 10-K filing.

HARBIN, China, Nov. 13, 2018 /PRNewswire/ -- China XD Plastics Company Limited (CXDC) ("China XD Plastics" or the "Company"), one of China's leading specialty chemical companies and top 500 non-Stated Owned Enterprises in China's manufacturing sector engaged in the development, manufacture and sale of polymer composite materials primarily for automotive applications, today announced the commissioning of its digital and automatic production base specialized in producing engineering alloy plastics and official ceremony held in Jebel Ali Free Zone ("JAFZA") on November 11, 2018.                                               

Witnessed this milestone of the Company's oversea business expansion during the ceremony were Mr. Ahmad Sultan Al Haddad, JAFZA's Chief Operating Officer, Mr. Chen Wang from China Consulate-General in Dubai, automobile manufacturers, and the Company's European customers, Middle East customers, and suppliers.

"As the first new material manufacturer rooted from China building a production facility in the Middle East, Dubai Xinda will play a vital role as a logistic and manufacturing hub for the Company with focus on top end polymer composite materials, including long chain nylon alloy and other specialty engineering plastics for the Company's product development, quality assurance, marketing and distribution in Middle East and EU. In addition, Dubai Xinda will provide support to the Company's international strategic clientele in customer support, logistics and delivery." said Jie Han, Chairman of the Board of Directors and Chief Executive Officer. "Following China's One Belt, One Road initiative, Dubai Xinda will supply advanced materials to high-end functional components for applications in automobiles, electronics, alternative energy, railroad, ships, and airplanes with its 11.25 thousand metric tons annual capacity stationed in our state of art, digital and automatic factory. I would like to take this opportunity to thank our dedicated employees, loyal customers, suppliers, partners and other supportive stakeholders who made this happen. We are thrilled about this significant achievement for China XD to pursue international business opportunity at a whole new level."

Third Quarter 2018 Financial Results

• Revenue was $297.2 million, a decrease of 4.6% YoY.
• Net income was US$9.0 million for the third quarter of 2018, compared to US$14.1 million for the same period of 2017, representing a decrease of US$5.1 million, or 36.2%. Basic and diluted earnings per share for the three-month period ended September 30, 2018 were both US$0.13, compared to US$0.21 per basic and diluted share for the same period of 2017.

"Our third quarter 2018 results were consistent with the unanticipated severe downturn in the auto industry of China, the first year over year drop in 28 years," said Jie Han, Chairman of the Board of Directors and Chief Executive Officer. "In addition, the reduction of duty on imported vehicles by an average of 46% is expected to have profound impact on the entire auto industry in China. Although we applaud the implementation of such supply-side reform by the policy makers for the wellbeing of the long term benefit of China auto industry, it will have short term impact on the auto market as companies throughout the supply chain adjust themselves and adapt to such change. On oversea business development front, we are pleased with our successful trial production at our production base in Dubai and remain optimistic about the prospect of our business expansion overseas, especially after positive results and feedbacks after product trials from customers in various countries and regions overseas."

Financial Guidance and Business Outlook

Since the beginning of this third quarter, China auto market has experienced an unexpected and unprecedent turn with both numbers of car produced and sold plummeted. The results from China Auto Industry Association came drastically below its early expectation. China auto sales dropped 4%, 3.8% and 11.6% in this July, August and September, respectively, compared to the same periods in 2017. It has a ripple effect and impact throughout China auto supply chain, including the Company. In light of the foregoing changing market condition and the macro economic environment in China, the Company is reiterating the updated and previously disclosed financial guidance for fiscal 2018 to range between $1 and $1.2 billion in revenue and net income to range between $70 and $80 million. It assumes the average exchange rate of the US dollar to RMB at 6.9. This financial guidance reflects the Company's current view of its business outlook for fiscal 2018 and is subject to revision based on changing market conditions at any time.

The Company's Dubai production base has completed trial production successfully and official commencement is scheduled on November 11, 2018 with 11.25 thousand metric tons annual capacity in 2019. Dubai Xinda primarily offers long chain nylon alloy and other high-end engineering plastics and has developed and completed product trials with a number of customers overseas from Spain, Italy, UAE, Malaysia, and India etc.

HARBIN, China, Nov. 5, 2018 /PRNewswire/ -- China XD Plastics Company Limited (NASDAQ: CXDC) ("China XD Plastics" or the "Company"), one of China's leading specialty chemical companies engaged in the development, manufacture and sale of polymer composite materials primarily for automotive applications, today announced signing of deleveraging investment framework agreement (the "Agreement") by and among its subsidiary, Heilongjiang Xinda Enterprise Group Company Limited ("Xinda Group"), CCB Financial Asset Investment Co., Ltd. ("CCB Financial"), and China Construction Bank Heilongjiang Branch ("CCB HLJ"), both of which are wholy owned subsidiaries of China Construction Bank ("CCB").

On, October 31, 2018, management from both the Company and CCB signed the Agreement at the conference center of the Company's Northeast Production Base. CCB Financial and CCB HLJ are planning to provide estimated 2 billion RMB (approximately US$289 million) capital to Xinda Group and or its affiliated entities in debt, equity or other forms, mainly to repay Xinda Group's interest bearing loans, to facilitate the Company to diversify and develop its business and to improve corporate management, subject to the parties entering into one or more definitive agreements. The definitive agreements will be subject to satisfactory due diligence by CCB Financial and CCB HLJ, business arrangement, legal viability, and completion and satisfaction of other standard and customary conditions. The Company will make its best effort to assist CCB Financial and CCB HLK but does not provide timing estimate or make promise of signing of any definitive agreement.

"We are very pleased to welcome CCB Financial as an important strategic and long-term partner of Xinda. Once materialized, the cooperation under this Agreement will not only help our company deleverage its balance sheet and improve its capital structure, but assist the Company to solidify its long term position in its industry," said Jie Han, Chairman of the Board of Directors and Chief Executive Officer. "As the second largest bank in the world by assets, CCB is very selective especially to non-state-owned enterprises in China. The signing of the Agreement reflects CCB's trust to our company after decades of cooperation reaching a new high level and unweavering support to high quality enterprises with focus on long term innovation by the government under the leadership of President Xi.

First Quarter 2018 Financial Results

• Revenue was $310.5 million, an increase of 30.6% YoY
• Basic and diluted earnings per share for the three-month period ended March 31, 2018 were $0.29, compared to $0.15 per basic and diluted share for the same period of 2017.

"We are pleased with our quarterly results, both top and bottom line growths as well as margin improvement," said Jie Han, Chairman of the Board of Directors and Chief Executive Officer. "An improved macroeconomic environment has improved business conditions and we are well position to execute our strategic plan."

"We are particularly pleased to see major revenue contributions from major new growth frontiers, fostered in large part by the gradual ramp up of our Sichuan manufacturing facility, a key milestone in our corporate development.  The new facility also extends our geographical reach and accelerates our market penetration beyond our established Northeast base, evidenced by our strong and consistent growth from Southwest, Central, North and South China."

"The Sichuan facility substantially expands the footprint of our auto business in China and while we expect that automotive applications will continue to be our core business, the new facility includes precision equipment which will enable us to diversify our product platform into such high-growth verticals as ships, high-speed rail, airplanes, bio-degradable materials, medical-grade materials, food packaging, electronic equipment, electrical products, alternative energy applications and power devices, which will help to propel the Company's growth."

"Our new facility in Dubai also extends our specialized high-tech products into an important new market. We are planning to complete installing 45 production lines with 12,000 metric tons of annual production capacity by the end of May 2018, and an additional 50 production lines with 13,000 metric tons of annual production capacity by the end of 2018.  This will bring the total installed production capacity in our Dubai facility to 25,000 metric tons. The Dubai facility will target high-end products for the overseas market and will ultimately enable more active inroads into the markets of Europe, the Middle East, Russia and other international regions with several global top customers in automotive sector."

"China XD continues to value our deep working relationships with our customers above all, and is committed to creating value with our culture of hard work and innovation.  We anticipate that the continued execution of our strategic plan supported by an increase in our production capacity, our entry into new markets, a diversified customer base and a diversification with international sales will help to generate business growth for years to come.  For fiscal 2018, we are reiterating our financial guidance of between $1.2 and $1.4 billion in revenue, $90 and $110 million in net income ", Mr. Han concluded.

Fourth Quarter 2017 Financial Results     

• Revenue was $427.6 million, an increase of 13.2% YoY and an increase of 37.3% sequentially
• Net loss was $20.5 million for the fourth quarter of 2017, compared to net income $36.7 million for the same period of 2016, representing a decrease of $57.2 million. Losses per share were $0.31 for the fourth quarter ended December 31, 2017, compared to $0.56 per share in the fourth quarter of 2016.

"We are pleased to have met our revenue guidance for 2017 abetted by strong customer demand from new growth regions in the fourth quarter.  Our robust sales results for the fourth quarter of the year and solid results for fiscal year 2017 are consistent with our expectations of a steady recovery throughout China's automotive supply chain," said Jie Han, Chairman of the Board of Directors and Chief Executive Officer. "According to the China Association of Automobile Manufacturers, automobile production in China increased by 3.2% in 2017 as compared to 2016.  An improved macroeconomic environment has improved business conditions and helped us to improve our profit margins."

"We are particularly pleased to see major revenue contributions from major new growth frontiers, fostered in large part by the gradual ramp up of our Sichuan manufacturing facility, a key milestone in our corporate development.  The Sichuan facility will ultimately add 300,000 metric tons of annual production to our domestic capacity for a total domestic capacity of 690,000 metric tons.  The new facility also extends our geographical reach beyond our established Northeast base, generating strong growth from the South and Central China regions, in addition to our continued and steady business development in Southwest and East China. We installed 50 production lines with 216,000 metric tons of annual production and construction at the complex is expected to be completed by the end of the second quarter of 2018."

"The Sichuan facility substantially expands the footprint of our auto business in China and while we expect that automotive applications will continue to be our core business, the new facility includes precision equipment which will enable us to diversify our product platform into such high-growth verticals as ships, high-speed rail, airplanes, bio-degradable materials, medical-grade materials, food packaging, electronic equipment, electrical products, alternative energy applications and power devices, which will help to propel the Company's growth." 

"Our new facility in Dubai also extends our specialized high-tech products into an important new market. We are planning to complete installing 45 production lines with 12,000 metric tons of annual production capacity by the end of April, 2018, and an additional 50 production lines with 13,000 metric tons of annual production capacity by the end of 2018.  This will bring the total installed production capacity in our Dubai facility to 25,000 metric tons. The Dubai facility will target high-end products for the overseas market and will ultimately enable more active inroads into the markets of Europe, the Middle East, Russia and other international regions."

"China XD continues to value our deep working relationships with our customers above all, and is committed to creating value with our culture of hard work and innovation.  We anticipate that the continued execution of our strategic plan driven by an increase in our production capacity, our entry into new markets, a diversified customer base and an escalation in international sales will help to generate business growth for years to come.  For fiscal 2018, we are providing financial guidance of between $$1.2 and $1.4 billion in revenue, $90 and $110 million in net income ", Mr. Han concluded.

Financial Guidance and Business Outlook

Excluding the effect from the one time repatriation tax, the Company met its financial guidance for fiscal 2017, with revenue of $1.3 billion, surpassing its forecasted revenue estimate range of $1.2 billion and $1.3 billion.

In light of anticipated contribution from production capacity to be added, our entry to new markets, diversified customer base and escalation of sales overseas, the Company projects revenue for fiscal 2018 to range between $1.2 and $1.4 billion in revenue. Gross margin in fiscal 2018 is expected to remain stable as compared to that of fiscal 2017. The Company project net income to range between $90 and $110 million, excluding the effect of repatriation tax. This is based on the anticipation of a steady recovery throughout the Chinese automotive supply chain and a stabilization of crude oil pricing and its impact on polymer composite materials in 2018. This forecast also assumes contributions from the Sichuan plant and the Dubai second phase project, both of which will start production by the end of second quarter of 2018 and the end of 2018, respectively.  It also assumes the average exchange rate of the US dollar to RMB at 6.3. This financial guidance reflects the Company's preliminary view of its business outlook for fiscal 2018 and is subject to revision based on changing market conditions at any time.

Third Quarter 2017 Financial Results

• Revenue was $311.4 million, a decrease of 6.1% YoY.
• EPS Basic and diluted was $0.21 vs. last years $0.31.

"Our total revenue fell short of expectations for the third quarter, although our PRC domestic revenue was up marginally as compared to the same period last year," said Jie Han, Chairman of the Board of Directors and Chief Executive Officer. "As reported by the China Association of Automobile Manufacturers, for the first nine months of 2017, automobile production increased 5.5% relative to the same period last year. A favorable macroeconomic environment throughout China's automotive supply chain led to positive growth in our sales volume, although this was offset by the Company's marketing strategy of offering lower-end products with lower RMB pricing in order to further penetrate the new regional markets in Central China and South China, which negatively affected our average selling price and gross margin. However, we are confident in our operating capabilities and believe that our new geographical positioning and new development projects will create a more robust and diversified enterprise."

Mr. Han continued, "We continued to gain traction into new territories attributable to our new, state-of-the-art Sichuan manufacturing facility located in southwest China.  When fully operational, this strategic initiative will add 300,000 metric tons of annual production capacity to our 390,000 metric tons of annual production capacity from our more established northeast Harbin plant. Our Sichuan facility currently has 50 production lines with 216,000 metric tons of annual production capacity, and we expect that the ongoing construction at our Sichuan campus will be completed by the end of the first quarter of 2018.  The installation of high precision equipment in our Sichuan facilities will enable us to broaden our product platform to serve an array of high-growth verticals which will ultimately result in additional income streams."

"We are very enthusiastic about all of our new industrial projects. Our development project with the Management Committee of Harbin Economic - Technological Development Zone includes an industrial project for upgrading existing equipment for 100,000 metric tons of engineering plastics, which we expect will be completed by the end of June 2018. Also included is an industrial project for 300,000 metric tons of biological composite materials, an industrial project for a 3D printing intelligent manufacture demonstration factory and a 3D printing display and experience cloud factory, all of which we expect to be completed by the end of July 2019.  We anticipate our development project with the People's Government of Shunqing District, Nanchong City of Sichuan Province for the production of 300,000 metric tons of bio-composite materials and additive manufacturing and 20,000 metric tons of functional masterbatch will be completed by the end of December 2018."

"Our Dubai facility extends our specialized high-tech products into an important overseas market. We plan to complete the installation of 45 production lines with 12,000 metric tons of annual production capacity by the first quarter of 2018, and to complete the installation of an additional 50 production lines with 13,000 metric tons of annual production capacity by the end of 2018.  This will bring the total annual production capacity of our Dubai facility to 25,000 metric tons. The Dubai facility will target high-end products for overseas markets and will ultimately help us both source raw materials and make inroads into the markets of Europe, the Middle East, Russia and other overseas markets."

"We believe that our increased production capabilities, geographical expansion and more diversified customer base both strengthen and augment our core automotive business.  Further, our new development projects, which leverage our technical expertise, could lead to additional new business. We view ourselves as the leader in the polymer composites sector, which will enable us to provide creative technology solutions for China's modernizing transportation, energy, healthcare and industrial sectors.  We reiterate our financial guidance for fiscal 2017 and continue to be excited by our core market positioning and expanded platform for growth," Mr. Han concluded.

Financial Guidance and Business Outlook

The Company reiterates its financial guidance for fiscal 2017 with revenue to range between $1.2 billion and $1.3 billion, and net income to range between $85.0 million to $100.0 million. This is based on the anticipation of a continued recovery throughout the Chinese automotive supply chain and a stabilization of crude oil pricing and its impact on polymer composite materials in 2017. This forecast also assumes additional contributions from the Sichuan facility and that overseas sales will stablize as expected.  It also assumes the average exchange rate of the US dollar to RMB at 6.8 and that the Company will incur interest expenses for long term loans and short term loans. This financial guidance reflects the Company's view of its business outlook for the fiscal year of 2017 and is subject to revision based on changing market conditions at any time.

HARBIN, China, June 5, 2017 /PRNewswire/ -- China XD Plastics Company Limited (CXDC) ("China XD Plastics" or the "Company"), one of China's leading specialty chemical players engaged in the development, manufacture and sale of modified plastics primarily for automotive applications, today announced that the special committee of its board of directors, which is composed entirely of independent directors (the "Special Committee"), has retained Duff & Phelps, LLC and Duff & Phelps Securities, LLC as the Special Committee's independent financial advisor, Davis Polk & Wardwell LLP as its U.S. legal counsel and Brownstein Hyatt Farber Schreck, LLP as its Nevada legal counsel in connection with its review and evaluation of the preliminary non-binding proposal letter dated February 16, 2017 from its Chairman and Chief Executive Officer, Jie Han ("Mr. Han"), XD. Engineering Plastics Company Limited, a company incorporated in the British Virgin Islands and wholly owned by Mr. Han, and MSPEA Modified Plastics Holding Limited, an affiliate of Morgan Stanley Private Equity Asia III, Inc. (collectively, the "Buyer Consortium"), to acquire all of the outstanding shares of common stock of the Company not already beneficially owned by the Buyer Consortium in a "going-private" transaction (the "Proposal").

The Special Committee is evaluating and considering the Proposal. The Special Committee cautions the Company's shareholders and others considering trading in its securities that no decision has been made by the Special Committee with respect to the Company's response to the Proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.

First Quarter 2017 Financial Results  

• Revenue was $237.8 million, an increase of 10.6% YoY.
• Basic and diluted earnings per share in the current quarter were $0.15, compared to $0.17 per basic and diluted share for the same period of 2016.

"We are pleased to report our first quarter 2017 results as they reflect our strong operating capabilities as well as the results of our strategic initiatives.  Our domestic sales showed favorable year-over-year comparisons as we continued to enter new geographic markets.  Our high value-added products enable better safety and performance features for our automobile manufacturing customers and have wide applications in numerous verticals as well.  However, a contraction in our gross margin occurred in the quarter due to a lower gross margin from higher-end products sold in the domestic market and an increase in cost of goods sold resulting from increased depreciation attributable to the expansion of our Sichuan campus. In terms of our international sales, we suspended overseas sales to an international customer due to an account receivable balance overdue situation which will be resumed once the agreed upon terms for payment are met and all overdue balances are collected," said Jie Han, Chairman of the Board of Directors and Chief Executive Officer.

"After a strong year in 2016, we are beginning to see moderating industry fundamentals in our sector. The China Association of Automobile Manufacturers reports that the growth of auto sales in China slowed in 2017 to date, affected by both the holidays and the Chinese government's restriction on the implementation of the favorable tax deductions for small engine cars. While we anticipate slower growth as compared to last year, we believe that our broad and deep product platform, new geographical positioning and expanding production capabilities will enable us to capture market share from our competitors and maintain solid profitability."

Mr. Han continued, "We continued to see significant revenue contributions from new growth regions in the first quarter, augmented by the continued ramp of our Sichuan manufacturing facility. Sales in the South China and the Central China regions increased 104.2% and 50.2%, respectively, from the same period in 2016, and our presence in the region has enabled us to secure new customers and improved market penetration. Our Sichuan facility now has 50 production lines with 216,000 metric tons of annual production capacity. The Sichuan facility will ultimately add 300,000 metric tons of annual production to our domestic capacity for a total domestic capacity of 690,000 metric tons.  We expect that construction at the complex will be completed by the end of the second quarter of 2017.  Although we expect that automotive applications will continue to be our core business, high precision equipment in our new facilities will enable us to diversify our product platform to serve an array of high-growth verticals which will help to propel the Company's growth."

"We are also pleased that our strategic plan to develop diversified products has gained significant traction with the signing of a definitive agreement with the People's Government of Shunqing District, Nanchong City of Sichuan Province for the production of 300,000 metric tons of bio-composite materials and additive manufacturing and 20,000 metric tons of functional masterbatch.  The project will add 320,000 metric tons of production capacity and we will also benefit from the favorable tax policies under China's 'Go West Campaign' by locating the project in Southwest China."

"Our new facility in Dubai also extends our specialized high-tech products into an important overseas market. We plan to complete the installation of 45 production lines with 12,000 metric tons of annual production capacity by the first quarter of 2018, and to complete the installation of an additional 50 production lines with 13,000 metric tons of annual production capacity by the second quarter of 2018.  This will bring the total annual production capacity in our Dubai facility to 25,000 metric tons. The Dubai facility will target high-end products for overseas markets and will ultimately enable more active inroads into the markets of Europe, the Middle East, Russia and other overseas markets."

"We believe that our increased production capabilities, new product offerings and a more diversified customer base form a solid platform which will enable sustainable corporate growth.  In addition, our strategic geographical expansion leverages our technical expertise and customer-centric philosophy.  Further, our product diversification is reflective of both our industry leadership in China's auto market and the growing demand of high technology sectors as driven by China's new economy.  We reiterate our financial guidance for fiscal 2017 and continue to appreciate the support of our shareholders and all of our stakeholders," Mr. Han concluded.

Financial Guidance and Business Outlook

The Company reiterates its financial guidance for fiscal 2017 with revenue to range between $1.2 billion and $1.3 billion, and net income to range between $85.0 million to $100.0 million. This is based on the anticipation of a continued recovery throughout the Chinese automotive supply chain and a stabilization of crude oil pricing and its impact on polymer composite materials in 2017. This forecast also assumes additional contributions from the Sichuan facility and that overseas sales will be resumed in the second half of 2017.  It also assumes the average exchange rate of the US dollar to RMB at 6.8 and that the Company will incur interest expenses for loan term loans and short term loans. This financial guidance reflects the Company's preliminary view of its business outlook for the fiscal year of 2017 and is subject to revision based on changing market conditions at any time.

Fourth Quarter 2016 Financial Results

• Revenue was $377.8 million, an increase of 38.5% YoY and an increase of 13.9% sequentially.
•  Basic and diluted earnings per share were $0.56, compared to $0.41 per basic and diluted share in the fourth quarter of 2015.

"We are pleased to have met our revenue and net income guidance for 2016 abetted by strong customer demand from new growth regions in the fourth quarter.  Our robust financial results for the fourth quarter of the year and solid results for fiscal year 2016 are consistent with our expectations of a steady recovery throughout China's automotive supply chain," said Jie Han, Chairman of the Board of Directors and Chief Executive Officer. "According to the China Association of Automobile Manufacturers, automobile production in China increased by 14.5% in 2016 as compared to 2015.  An improved macroeconomic environment has improved business conditions and helped us to generate stronger profit margins."

"We are particularly pleased to see major revenue contributions from major new growth frontiers, fostered in large part by the commissioning of our Sichuan manufacturing facility in July 2016, a key milestone in our corporate development. The Sichuan facility will ultimately add 300,000 metric tons of annual production to our domestic capacity for a total domestic capacity of 690,000 metric tons.  The new facility also extends our geographical reach beyond our established Northeast base, generating strong growth from the South and Central China regions, in addition to our continued and steady business development in Southwest and East China. We installed 50 production lines with 60,000 metric tons of annual production in the second half of 2016 and construction at the complex is expected to be completed by the end of 2017."

"The Sichuan facility substantially expands the footprint of our auto business in China and while we expect that automotive applications will continue to be our core business, the new facility includes precision equipment which will enable us to diversify our product platform into such high-growth verticals as ships, high-speed rail, airplanes, bio-degradable materials, medical-grade materials, food packaging, electronic equipment, electrical products, alternative energy applications and power devices, which will help to propel the Company's growth."

"Our new facility in Dubai also extends our specialized high-tech products into an important new market. We are planning to complete installing 45 production lines with 12,000 metric tons of annual production capacity by the end of July 2017, and an additional 50 production lines with 13,000 metric tons of annual production capacity by the end of January 2018.  This will bring the total installed production capacity in our Dubai facility to 25,000 metric tons. The Dubai facility will target high-end products for the overseas market and will ultimately enable more active inroads into the markets of Europe, the Middle East, Russia and other international regions."

"China XD continues to value our deep working relationships with our customers above all, and is committed to creating value with our culture of hard work and innovation.  We anticipate that the continued execution of our strategic plan driven by an increase in our production capacity, our entry into new markets, a diversified customer base and an escalation in international sales will help to generate business growth for years to come. For fiscal 2017, we are providing financial guidance of between $1.2 billion and $1.3 billion in revenue and between $85 million and $100 million in net income," Mr. Han concluded.

HARBIN, China, Feb. 17, 2017 /PRNewswire/ -- China XD Plastics Company Limited ("China XD Plastics" or the "Company") (NASDAQ: CXDC), one of China's specialty chemical players engaged in the development, manufacture and sale of modified plastics primarily for automotive applications, today announced that its Board of Directors (the "Board") has received a preliminary non-binding proposal letter, dated February 16, 2017, from its Chairman and Chief Executive Officer, Mr. Jie Han ("Mr. Han"), XD. Engineering Plastics Company Limited ("XD Engineering"), a company incorporated in the British Virgin Islands and wholly owned by Mr. Han, and MSPEA Modified Plastics Holding Limited, an affiliate of Morgan Stanley Private Equity Asia III, Inc. (collectively, the "Buyer Consortium"), to acquire all of the outstanding shares of common stock of the Company not already beneficially owned by the Buyer Consortium in a "going-private" transaction (the "Transaction") for US$5.21 per share of common stock in cash. This price represents a premium of approximately 28.6% to the Company's closing price on February 15, 2017, and a premium of approximately 29.3% to the average closing price during the last 30 trading days. The proposal letter states that the Buyer Consortium expects that the Board will appoint a special committee of independent directors to consider the proposal and make a recommendation to the Board. The proposal letter also states that the Buyer Consortium will not move forward with the proposed Transaction unless it is approved by such a special committee, and the proposed Transaction will be subject to a non-waivable condition requiring approval by majority shareholder vote of shareholders other than the Buyer Consortium members. The Buyer Consortium currently beneficially owns approximately 74% of the issued and outstanding shares of common stock of the Company on a fully diluted and as-converted basis.

A copy of the proposal letter is attached as Annex A to this press release.

The Board has established a special committee (the "Special Committee") of disinterested directors to consider the proposal. The Special Committee is composed of the following independent directors of the Company: Mr. Lawrence W. Leighton, Mr. Feng Li, and Mr. Linyuan Zha, with Mr. Leighton serving as chairperson of the Special Committee. The Special Committee will be responsible for evaluating, negotiating and recommending to the Board any proposals involving a strategic transaction by the Company with one or more third parties. The Special Committee intends to retain advisors, including an independent financial advisor, to assist in the evaluation of the proposal and any additional proposals that may be made by the Buyer Consortium.

The Special Committee cautions the Company's shareholders and others considering trading in its securities that the Special Committee has not made any decisions with respect to the Company's response to the proposal. There can be no assurance that any definitive offer will be made by the Buyer Consortium or any other person, that any definitive agreement will be executed relating to the proposed Transaction, or that this or any other transaction will be approved or consummated.

Third Quarter 2016 Financial Results

• Revenue was $331.8 million, an increase of 38.8% YoY.
• Basic and diluted earnings per share were $0.31, compared to $0.09 per basic and diluted share in the third quarter of 2015.

"We are pleased by the financial results of the third quarter which benefited from a continued improvement in macroeconomic conditions in the auto industry, our increased production capacity and an escalation in international sales," said Jie Han, Chairman of the Board of Directors and Chief Executive Officer. "According to the China Association of Automobile Manufacturers, the number of automobiles manufactured in China increased by 14.7% for the first nine months of 2016 as compared to first nine months of 2015. An improvement in macroeconomic conditions through the first nine months of 2016 has resulted in improved business conditions and eased pricing pressures which have resulted in stronger company profit margins."

Mr. Han continued, "Key elements of our growth plan include elevating the sales of our high-end products, optimizing our increased production capacity, and increasing our overseas sales in order to reduce our concentration in the Chinese market. We are beginning to see the results of this strategy as we increased overseas sales significantly from the overseas market in the third quarter as compared to the same period last year. As anticipated, the steady recovery in operating conditions coupled with the focused execution of our strategic plan has resulted in a marked improvement in key financial metrics such as sales volume, average selling price and profitability margins."

"The commissioning of our Sichuan campus in the current quarter is an important milestone as it will ultimately add 300,000 metric tons of annual production to our domestic capacity, for a total domestic capacity of 690,000 metric tons. The Sichuan facility substantially expands the footprint of our auto business in China and while we expect that automotive applications will continue to be our core business, the new facility includes precision equipment which will enable us to diversify our product platform into such high-growth verticals as ships, high-speed rail, airplanes, bio-degradable materials, medical-grade materials and food packaging which will propel the company's growth."

"Our Sichuan plant has been designed with the highest production specifications with state-of-the-art equipment and extends our geographical reach beyond our established Northeast base in Harbin as the China's Southwest is rapidly becoming an important economic region. We anticipate having production capacity of 60,000 metric tons as operational by year-end 2016," continued Mr. Han.

"In addition to our new Sichuan campus, our manufacturing facility in Dubai will also extend our specialized high-tech products into important new markets. We are planning to complete Phase 2 of our build-out by the end of this year which will constitute installing an additional 14,000 metric tons of annual production capacity, bringing total production capacity in Dubai to 16,500 metric tons. The Dubai facility will target high-end products for the overseas market and will ultimately enable more active inroads into the markets of Europe, the Middle East and other international regions."

"We view our ability to innovate combined with our utilization of state-of-the art equipment as a technical and competitive edge in the marketplace. China XD is committed to creating value for all of our stakeholders through our commitment and dedication to our customers. We remain confident in our business model and anticipate that our expansion in Sichuan and the completion of our Dubai plant this year will result in improved market positioning, a diversified base of customers, higher-end sales and an expansion into new verticals. We anticipate that the year's steady improvement in our sector will continue into 2017 and we reiterate our current financial guidance at this time," Mr. Han concluded.

Business Outlook and Guidance

The Company reiterates its financial guidance for fiscal 2016 with revenue to range between $1.0 billion and $1.1 billion and net income to range between $100.0 million to $110.0 million. This is based on the anticipation of the continued steady recovery throughout the Chinese automotive supply chain, the Company's belief in its ability to secure new customers and a stabilization of crude oil pricing and its impact on polymer composite materials in 2016. This forecast also assumes contributions from the Sichuan plant, which started production in the second half of 2016. It also assumes a relatively stable exchange rate of the US dollar to RMB and excludes certain non-cash and non-operational items. This financial guidance reflects the Company's view of its business outlook for the remainder of fiscal 2016 and is subject to revision based on changing market conditions at any time. The Company currently plans to provide financial guidance for fiscal 2017 later this year.

Second Quarter 2016 Financial Results

• Revenue was $277.1 million, an increase of 4.4% YoY and 28.9% sequentially
• Net income was $33.3 million, an increase of 30.6% YoY and 192.1% sequentially
  

"We are pleased with the financial results of the second quarter as they are consistent with our expectations of a steady recovery throughout China's automotive supply chain," said Jie Han, Chairman of the Board of Directors and Chief Executive Officer. "According to the China Association of Automobile Manufacturers, the number of automobiles manufactured in China increased 10.5% in June 2016 compared to the same month in 2015. We are particularly pleased to see this improvement coincide with our progress in expanding our market into new growth frontiers, such as the South and Central China regions, in addition to our continued and steady business development in Southwest and East China."

Mr. Han continued, "As a follow-up to our announced product testing trials and a pilot trial with new customers outside of China, as expected, commercial orders of higher-end products including specialty plastic alloy from the overseas market were received and the products were delivered in the second quarter of 2016. Both the improvement in macroeconomic conditions and our overseas new customer efforts have contributed to the improvement of our operational performance and key financial performance metrics such as sales volume, average selling price and gross and net margin."

"As previously announced, we held a commissioning ceremony at our Sichuan manufacturing facility on July 7th, 2016, an important milestone in our corporate development. Our plant has been designed with the highest production specifications with state-of-the-art equipment to facilitate product deployment into new growth verticals while maintaining the highest standards in quality control and batch consistency," continued Mr. Han. "The new facility extends our geographical reach beyond our established Northeast base as the Southwest region is rapidly becoming an important economic driver in China. In addition, the new campus will diversify our product platform into additional high-growth verticals such as ships, high-speed rail, airplanes, bio-degradable materials, medical-grade materials and food packaging. We anticipate 60,000 metric tons contribution of production capacity in the second half of this year at the new facility."

"In addition to our new Sichuan campus, our new facility in Dubai also extends our specialized high-tech products into an important new market. This highly specialized facility will ultimately enable more active inroads into the markets of Europe, the Middle East and other international regions."

"China XD continues to value our deep working relationships with our customers and is committed to create lasting value to customers, employees and shareholders with our culture of hard work and innovation, which we believe differentiates us from our competitors. We expect that our expansion into Southwest and Central China and our Dubai presence will strengthen our leadership position as we penetrate new markets. As evidenced by the current quarter's results, we anticipate benefiting from a continued recovery throughout the Chinese automotive supply chain and look forward to additional progress in both our domestic and international business and reiterate our fiscal 2016 financial guidance," Mr. Han concluded.

HARBIN, China, July 5, 2016 /PRNewswire/ -- China XD Plastics Company Limited (NASDAQ: CXDC or the "Company"), one of China's specialty chemical players engaged in the development, manufacture and sale of modified plastics primarily for automotive applications, today announced that its wholly owned subsidiary, Favor Sea Limited (the "Issuer"), intends to redeem its US$150,000,000 11.75% guaranteed senior notes due 2019 (the "Notes") issued under an indenture dated as of February 4, 2014 (the "Indenture").

In accordance with the redemption notification, dated June 30, 2016, sent by the Issuer, and the terms of the Notes and the Indenture, all of the Notes outstanding on August 29, 2016 (the "Redemption Date") will be redeemed by the Issuer on the Redemption Date at a redemption price equal to 100% of the principal amount of the Notes plus the Applicable Premium (as defined in the Indenture) as of the Redemption Date (the "Redemption Price") plus accrued and unpaid interest up to (but not including) the Redemption Date equal to $1,223,958.33 (the "Accrued Interest"). Holders of the Notes are advised that the amount of Applicable Premium will be provided to such holders approximately one to two business days prior to the Redemption Date, when such amount is finally determined in accordance with the terms of the Indenture. It is anticipated that the redemption will be funded by the Company's cash and bank deposits, existing credit facilities and other funding sources.

The Indenture is attached as Exhibit 4.14 to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2013.

This news release is for informational purpose only and is not an offer to buy any securities of the Company.

Fourth Quarter 2015 Financial Results

• Revenues were $272.8 million for the fourth quarter of 2015, compared to $307.1 million in the same period of 2014, representing a decrease of 11.2%, or $34.3 million.
• Basic and diluted earnings per share were $0.41, compared to $0.54 per share in the fourth quarter of 2014.

"We are pleased to have met our revised revenue and net income guidance for 2015 issued in the third quarter of last year due to reasonably strong customer demand in the fourth quarter for our products. However, challenging macroeconomic conditions in China has impeded the growth of the domestic automotive market, which stalled our record of steady growth for the first time last year. Because of the challenging operating conditions, our domestic market experienced a 1.0% decrease in sales volume and a 1.4% decrease in the average selling price of our products in fiscal 2015 as compared to fiscal 2014. We experienced a decrease in our operating metrics primarily due to the lower 7.2% sales contribution from sales overseas compared to this customer's 12.6% sales contribution in fiscal 2014," said Jie Han, Chairman and Chief Executive Officer.

"With the slowing domestic economy, vehicle sales in China grew by only 4.7% in 2015, the slowest rate in 25 years, and both the automotive and automotive parts industries in China have experienced pricing pressure beginning in 2015. In order to stimulate the auto industry, in September 2015, the Chinese government implemented an incentive policy granting 50% reduction in sales tax for eligible purchases of vehicles with engine sizes of 1.6 liters and lower. This helped spur the recovery of vehicle sales in China in the fourth quarter of 2015 and is reflected in our better sequential results as well as in an improved year-over-year gross profit margin."

"Our marketing efforts have produced positive sales results in Southwest China and Central China where we are working to develop new customers. Our expansion plans in Sichuan enables us to locally service important new customers in this rapidly growing auto-making hub. While we expect automotive applications to continue to be our core business, the new facility will include precision equipment that will facilitate product deployment into additional high growth verticals such as high speed rail, shipping aviation, 3D printing materials, bio-degradable materials, medical-grade materials and food packaging. When complete, the new facility under construction will increase our total production capacity by 300,000 metric tons of new capacity. We expect our Sichuan campus to be commissioned in the second half of 2016 with approximately 60,000 metric tons of production capacity contribution this year."

"Our new facility in Dubai produces specialized high margin products and is strategically situated as a gateway to the Middle East and Europe. Phase 1 of our Dubai plant was completed last year with plant capacity capable of producing 2,500 metric tons of high end products, and production is continuing to ramp to reach optimal utilization in 2016. Phase 2 of Dubai, which will produce 14,000 metric tons of additional capacity, is currently under construction and is expected to start producing at the beginning of 2017."

"We are pleased to have seen our business stabilize in the fourth quarter as seen by a slight upturn in customer demand. We are optimistic about our outlook for 2016 as we bring new capacity online to serve new customers in Asia, Europe and Middle East. We are excited about our growth prospects and believe that our new production capacity, technological edge and improved market positioning will enable us to substantially grow revenues and market share in the years ahead," concluded Chairman and Chief Executive Officer Jie Han. 

Financial Guidance and Business Outlook

The Company projects revenue for fiscal 2016 to range between $1.0 billion and $1.1 billion and net income to range between $100.0 million to $110.0 million. This is based on the anticipation of a steady recovery throughout the Chinese automotive supply chain and a stabilization of crude oil pricing and its impact on polymer composite materials in 2016. This forecast also assumes contributions from the Sichuan plant, which will start production in the second half of 2016.  It also assumes the average exchange rate of the US dollar to RMB at 6.5. This financial guidance reflects the Company's preliminary view of its business outlook for fiscal 2016 and is subject to revision based on changing market conditions at any time.

• Revenues were $239.1 million, a decrease of 24.3% YoY
• Basic and diluted earnings per share for the third quarter of 2015 were both $0.09 compared to $0.66 per basic share and $0.62 per diluted share in the third quarter of 2014. 

"We experienced a challenging first nine months of 2015 amidst slowing conditions in China's domestic automotive market," said Jie Han, Chairman and Chief Executive Officer. "Vehicle sales in China grew by only 0.31% in the first nine months of 2015, the slowest rate in 24 years due to the economic slowdown in the world's largest car market. Further, both automakers and auto parts manufacturers in China experienced pricing pressure beginning in 2014, which has continued to the present. The unusual volatility of the Chinese stock market since June 2015 has also had a negative impact on consumer sentiment and the growth in demand."

"As a result of the slowdown in our sector and the resulting contraction in demand and pricing pressure, plastic fabricators have been seeking newer products utilizing lower cost raw materials and more cost-efficient formulations. Since early 2014, the Company has developed such cost-efficient new products and started to market higher-end products to customers overseas. As previously announced, the Company has experienced a delay in its payment collection with respect to a South Korean customer. To better manage its financial risk, the Company implemented a ceasing supply to the customer. While the customer has continued its payment, the ceasing supply is and will still be in place until all outstanding balance has been paid. With mutual agreement on pricing and specifications of products reached, the Company will resume shipping products to this customer only after all of the outstanding balance is collected as contractually agreed.  

Our expansion plans in Southwest China affords us closer proximity to certain key customers and higher margin manufacturers. Despite the recent rainy season, theSichuan facility construction is on schedule and expected to complete trial run by mid-2016. We are seeing increasing demand for our products from this region, since Southwest China is rapidly becoming a major auto-making hub and a center for high speed rail, shipping and aviation. While we expect automotive applications to continue to be our core business, the new facility will include precision equipment that will facilitate product deployment into additional high growth verticals."

"Our new facility in Dubai contains an array of specialized high margin products and serves as a gateway to the Middle East and Europe. The majority of theground construction is expected to be completed by the end of 2015."

"We work with our upstream customers in the earliest phases of the development process which leads to long-term customer relationships.  Our current product emphasis is on environmentally friendly, light-weighted, and bio-degradable new materials for new applications in high-speed rail, ships, and airplanes, further reducing our reliance on the auto sector.  We believe that it is our customer relationships as well as our pursuit of new and improved products using advanced technologies that enables us to maintain our premier market positioning. We are confident that our culture of innovation will enable us to leverage our expertise and succeed in new markets and adapt to changing industry conditions in the periods ahead," concluded Chairman and Chief Executive Officer Jie Han.

Business Outlook and Guidance

The deceleration of China's economy and its contractionary effect on its domestic auto industry has increased pricing and sales pressure on China's auto industry's upstream suppliers. In particular, plastic fabricators are seeking new products that utilize lower cost raw materials and more cost-efficient formulations. As previously disclosed, we instituted the ceasing supply to the ROK customer. The combination of these factors resulted in a 14.2% contraction of our sales volume to 81,663 metric tons from 95,204 metric tons in the year-ago quarter.  Despite this contraction in customer demand from overseas, the pricing of the majority of our existing products has remained relatively stable.  However, our newly launched products have a relatively lower average selling price which has lowered our total average selling price in response to reduced customer demand.

While the market environment for the automobile sector will likely be challenging for the rest of 2015, we expect sales and profit in the last quarter of 2015 to improve sequentially with greater contribution from domestic businesses due to the newly issued auto sales tax reduction by the government and our proactive pricing tactics and cost management procedures. In anticipation of the coming 2016, the Company has adapted to changing market dynamics by better allocating our current production capacity, reducing concentration in the China's auto market, and diversifying our product portfolio to include new higher-end verticals.

Despite the slowdown in China's economy and its auto supply chain, the change in our overseas product mix and the delay in our payment collection with respect to one of our South Korean customers, and due to our strong customer relationships, strategic market positioning and visibility into current and new business, we reiterate our September guidance and expect full-year 2015 sales to be in the $900 million to $1 billion range, and expect net income to be in the $80 million to $100 million range. This financial forecast reflects the Company's business outlook for the remainder of fiscal 2015. It makes certain assumptions about the impact of crude oil prices on polymer composite materials for the remainder of 2015 and makes assumptions about exchange rates and interest expense associated with both its long and short-term debt. 

HARBIN, China, September 15, 2015 /PRNewswire/ -- China XD Plastics Company Limited (NASDAQ: CXDC) ("China XD Plastics" or the "Company"), one of China's leading specialty chemical companies engaged in the development, manufacture and sale of polymer composite materials primarily for automotive applications, today provided a business update and an adjustment to its full year financial guidance.

In the first half of 2015, the substantial slowdown in China's domestic growth has impeded the growth of its auto industry and China's entire auto supply chain, which has caused downward pricing pressure on the Company's products. Further, a change in the Company's overseas product mix has resulted in pricing pressure and margin contraction as compared to the year-ago period. In addition, the Company has experienced a delay in its payment collection with respect to a South Korean customer, which could impact its ability to meet its financial guidance. Accordingly, the Company has adjusted its full year financial guidance. The Company now expects full-year 2015 revenue to be in the $900 million to $1 billion range, and expects full-year net income to be in the $80 million to $100 million range. This financial forecast reflects the Company's business outlook for the remainder of fiscal 2015.

"We feel it is prudent to adjust guidance now in order to provide our shareholders with an update regarding our operational conditions and expectations in a timely and transparent way," said Jie Han, Chairman of the Board of Directors and Chief Executive Officer. "The primary cause for the revision is a likely reduction in business from a relatively new overseas customer attributable to payment collection issues. We view this as a one-time event and we are taking steps to resolve this matter."

"Our long term growth strategy remains intact. Our Phase 2 expansion in Dubai is on track for completion by the end of 2015, and we expect the new facility to fulfill orders from new customers in South Korea and Europe in early 2016. In addition, our Sichuan campus is on schedule to be operational in the first half of 2016. We are excited about the growth prospects of the Company and believe that our technological edge and market positioning will enable us to substantially grow revenues and market share in the years ahead."

The Company's adjustment of its full year financial guidance is principally based on the following two factors:

1) The Company has experienced a delay in its payment collection with respect to a South Korean customer. To better manage its financial risk, the Company implemented a one-time cease-supply to the customer for 60 days in accordance with its risk management policy while both parties actively negotiate the pricing and payment terms associated with the Company's high-end products; and,

2) The Company has experienced pricing and margin pressure from its domestic customers due to the continuing slowdown of China's auto sector and its upstream supply chain which has continued into the third quarter of 2015.

The Company estimates that approximately 89% of the revision to its full year 2015 net income guidance range is attributable to the overseas customer situation addressed above, while approximately 11% of the revision is attributable to China's macroeconomic environment. The Company believes that its current operations are sound and that its technological base and culture of innovation affords it the opportunity to expand into additional verticals.

Second Quarter 2015 Financial Results 

• Revenue was $265.4 million, an increase of 0.5% YoY and 19.6% sequentially
• Basic and diluted earnings per share for the second quarter of 2015 were $0.39 compared to $0.30 per basic and diluted share in the second quarter of 2014.

"We reported consistently stable cash flow in the first half of 2015 amidst slowing and challenging conditions in China's domestic automotive market," said Jie Han, Chairman of the Board of Directors and Chief Executive Officer. Vehicle sales in China grew by 1.4% in the first half of 2015, the slowest rate in approximately 24 years, amid which the State-backed auto association revised its 2015 full year forecast to 3% growth due to the economic slowdown in the world's largest car market. Further, both automakers and parts manufacturers in China experienced pricing pressure from 2014 to the present. The unusual volatility of the Chinese stock market since June 2015 also seemed to have certain negative impact on consumer sentiments. While our top line was virtually even with the year-ago quarter, our focus on high-end manufacturing led to strong sales outside of our traditional sales base in China, which coupled with our disciplined working capital management, resulted in a 14% increase in EBITDA for the quarter.

"We are pleased to announce that our new facility in Dubai has been operational since late May. The facility contains state-of-the-art equipment that produces an array of specialized high-margin products and serves as a gateway to geographic opportunities in the Middle East and Europe. It is expected that further expansion of this facility will be mostly completed by the end of the year."

Mr. Han continued, "Our expansion plans in Southwest China are proceeding as scheduled and we are seeing new and increasing demand for our products from this region, since Southwest China is rapidly becoming a major auto manufacturing hub and a center for high speed rail, shipping and aviation. While we expect automotive applications to continue to be our core business, the new facility will include precision equipment that will facilitate product deployment into additional growth verticals."

"We continue to work closely with our upstream customers in the earliest phases of the development process and believe that it is our technological edge as well as our relentless pursuit of new and improved products for our customers that afford us a strong competitive advantage. We are confident that our ongoing expansion and culture of innovation will enable us to leverage our market position and weather different industry conditions in the periods ahead," concluded Chairman and Chief Executive Officer Jie Han.

Business Outlook and Guidance

This slowing growth of the economy and auto industry in China has increased pricing and sales pressure on China's auto industry's upstream suppliers. In Particular, plastic fabricators are seeking new products utilizing lower cost raw materials and more cost-efficient formulations. The pricing of the majority of the Company's existing products was under some pressure in the second quarter with our average selling price experiencing a 3.4% decline from the year-ago quarter.

While China continues to be a growing and prosperous economy, uncertainty as to China's macroeconomic environment both domestically and internationally, may inhibit consumer buying for such large-ticket items as automobiles. While the market environment for the automobile sector could be challenging for the rest of 2015, we believe that we have adapted to changing market dynamics by offering more cost-effective formulations of our products and by expanding our product portfolio to applications in other industries.

Due to our leading market position, culture of innovation and visibility into current and new business, we are reiterating our full year guidance for 2015. The Company expects full-year 2015 sales to be in the $960 million to $1.06 billion range, and expects net income to be in the $100 million to $120 million range. This financial forecast reflects the Company's business outlook for the remainder of fiscal 2015. It makes certain assumptions about the impact of crude oil prices on polymer composite materials for 2015 and makes assumptions about exchange rates and interest expense associated with both its long and short-term debt. This financial guidance is subject to revision based on changing market conditions at any time.

First Quarter 2015 Financial Results    

• Revenue was $221.9 million, a decrease of 0.8% YoY and 27.7% sequentially
• Basic and diluted earnings per share were $0.39, compared to $0.34 per basic and diluted share in the first quarter of 2014. 

"Our first quarter 2015 results were consistent with our expectations," said Jie Han, Chairman of the Board of Directors and Chief Executive Officer.  "The automotive industry in China continues to experience a slower growth rate than it has in recent years which has increased pricing pressure on upstream businesses. We have quickly adjusted to these changing market dynamics by offering new more cost-efficient formulations of our Polyamide (PA) products. Our responsiveness to market conditions and ability to adapt to customer needs and to maintain stable gross margin are critical points of differentiation for China XD Plastics among our peers."

Mr. Han continued, "We remain focused on maintaining our position as an industry leader in China's auto market while also strategically expanding our business into new markets. We are pleased to announce that our new facility in Dubai will be operational as of this quarter. Presence in Dubai will provide numerous advantages including international business environment, access to low-cost raw materials and tax exemptions. We are confident in the resilience of our business model and our ability to capitalize on exciting growth opportunities."

Business Outlook and Guidance

Based on the Company's consideration for slowing demand throughout the Chinese automotive supply chain and uncertainty of the impact of volatile crude oil prices on polymer composite materials in 2015, the Company reiterates its guidance for 2015. The Company full-year sales to range between $960 million and $1.06 billionand net income to range between $100 million to $120 million.  This forecast assumes constant exchange rates and anticipated interest expense associated with both its long and short-term debt, and reflects the Company's current and preliminary view of its business outlook in fiscal 2015, which is subject to change based on then actual circumstances.

HARBIN, China, May 8, 2015 /PRNewswire/ -- China XD Plastics Company Limited (NASDAQ: CXDC, "China XD Plastics" or the "Company"), one of China's leading specialty chemical producers engaged in the development, manufacture and sale of polymer composite materials primarily for automotive applications, today announced the audit committee of the Board of Directors of the Company approved the dismissal of KPMG as the Company's independent registered public accounting firm, effective as of May 8, 2015, and the appointment of KPMG Huazhen (SGP) as the Company's independent registered public accounting firm for the fiscal year ending December 31, 2015.

The audit reports of KPMG on the Company's consolidated financial statements for the fiscal years ended December 31, 2014 and 2013 did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principles.

Mr. Jie Han, Chairman of the Board of Directors and Chief Executive Officer of China XD Plastics, said, "While China XD Plastics previously engaged KPMG based in Hong Kong, the change to KPMG Huazhen (SGP) will align the auditing process to the location where the vast majority of the Company's operations take place and where substantial audit work is performed. Going forward, the Company will continue to work with KPMG Huazhen (SGP) which is based in mainland China. We are pleased the appointment of KPMG Huazhen (SGP) was approved by the Company's Audit Committee."

For more information on China XD Plastics' change in auditor please refer to the Company's Form 8-K filed on May 8, 2015.

Fourth Quarter 2014 Financial Results

• Revenue was $307.1 million, a decrease of 20.2% YoY and 2.7% sequentially
• Basic and diluted earnings per share were $0.54, compared to $0.89 per basic and diluted share in the fourth quarter of 2013.

"We are pleased with our results in 2014 considering the challenging conditions in China's automotive industry. We increased volume shipments, increased revenue, and diversified our product offering and customer base to position ourselves for future growth," said Jie Han, Chairman of the Board of Directors and Chief Executive Officer. "In 2014, vehicle sales in China grew by their lowest rate in over 20 years, pressuring auto makers and their suppliers to reduce costs up and down the supply chain. We responded quickly to changing demand from our China automotive customers by offering new lower-cost formulations of Polyamide (PA) products. Furthermore, benefiting from tax exemption, abundance of raw materials and logistics from our Dubai subsidiary, we increased sales to more customers outside of China and offered higher-margin products for automotive, high-end, appliances and electronics. In 2014, 12.6% of our sales were generated from outside of China, demonstrating our ability to execute on our diversification strategy."

Mr. Han continued, "We continue to see numerous opportunities to grow our business in carefully-selected markets. Our new Dubai facility, which is scheduled to be fully operational in the first half of 2015, will more effectively expand our reach into the Middle East, Europe and other parts of Asia. Similarly, our new Southwest China facility will enable us to further penetrate this fast-growing region of the domestic market once it is operational in the first half of 2016. Through our R&D efforts, we have added electronics, high-speed rail, 3D printing and biodegradable plastics to our product portfolio. In 2015, we will further refine our product mix in auto applications, and expect to gradually generate revenues from more diversified product offerings including electronics, biodegradable plastics, 3D printing, high-speed rail, as well as marine."

Third Quarter 2014 Financial Results:

• Revenues were 315.7 million, an 7.7% increase from $293.1 million in the same quarter last year.
• Basic and diluted earnings per share were $0.66 and $0.62, respectively, compared to $0.64 per basic and diluted share in the third quarter of 2013.

"Strong sequential growth confirms our view that business would accelerate over the course of the year," said Jie Han, Chairman of the Board of Directors and Chief Executive Officer of China XD Plastics. "Revenue growth was fueled by strong domestic demand, success in our geographic diversification efforts outside of China, and improved average selling prices resulting from our strategic shift to higher-end products."

Mr. Han continued, "Looking forward, we continue to see numerous opportunities to grow our business, and are acting accordingly. With the future contribution from the Southwest Campus, we will be able to effectively cover all major markets in China, while products from our Dubai plant will cover overseas markets including Asia, the Middle East, Russia and Europe. Our success in product development this year has broadened our product portfolio from six to now eleven categories. Through our R&D efforts, we have added 3D printing and biodegradable materials to our portfolio. With automobile applications continuing to be our core business, we plan to gradually diversify our product offering to include products for applications in high-speed rail, ships, aircrafts as well as biodegradable and electronics applications."

Business Outlook and Guidance

Based on the Company's strong performance during the quarter and positive outlook for growing customer demand in the fourth quarter, the Company reiterates its revenue guidance for 2014. The Company expects full-year sales to range between $950 million and $1.05 billion and net income to range between $100 million to $120 million. This forecast is based on constant exchange rates and the anticipated interest expense associated with both its long and short-term debt, and reflects the Company's current and preliminary view, which is subject to change.

Second Quarter 2014 Financial Results

• Revenues were $264.2 million, an increase of 30.7% from $202.2 million in the second quarter of 2013
•  Basic and diluted earnings per share were both $0.30, when compared to last year's results, which was at $0.32, respectively.

"We are pleased to again report solid revenue growth and improved profitability this quarter," said Jie Han, Chairman of Board of Director and Chief Executive Officer of China XD. "Growth reflected our leading market share in Northeast China, accelerating penetration of the market in East China and the initiation of sales overseas. Importantly, higher-value products continue to grow in our product mix, enabling a higher average selling price reflected in the fact that revenues grew faster than tonnage volume."

Mr. Han continued, "Because of the exciting growth opportunities we see in our markets, we continue to step up our research and development spending. We take pride in being a profitable growth company, but do recognize that directing more gross profit into new product development can help us sustain, or even accelerate, our growth rate in the years to come. We continue to tightly control our selling and general expenses in line with our corporate culture."

Business Outlook and Guidance

Based on the Company's strong performance during the quarter and positive outlook for growing customer demand in the second half of the year, the Company reiterates its revenue guidance for 2014. The Company expects full-year sales to range between $950 million and $1.05 billion and net income to range between $100 million to $120 million. This forecast is based on constant exchange rates and the anticipated interest expense associated with both its long and short-term debt, and reflects the Company's current and preliminary view, which is subject to change.

HARBIN, China, July 14, 2014 /PRNewswire/ -- China XD Plastics Company Limited (NASDAQ: CXDC, "China XD Plastics" or the "Company"), one of China's leading specialty chemical players engaged in the development, manufacture and sale of polymer composite materials primarily for automotive applications, today strongly refuted the irresponsible allegations made in an article posted by Bleecker Street Research ("Bleecker Street") on Seeking Alpha's website on July 10, 2014 (the "Bleecker Street Article").

China XD Plastics believes that the Bleecker Street Article contains numerous errors of facts, misleading speculations and malicious interpretations of events. China XD Plastics believes that the dissemination of these spurious allegations is irresponsible. The Company is currently evaluating what actions it will take with regard to Bleecker Street.

"The Company has worked hard to build its credibility with the investment community. We are outraged that such irresponsible allegations have been made," said Jie Han, Chairman of the Board of Directors and Chief Executive Officer of China XD. "We believe that it is important for us to separate facts from fiction and to point out the numerous discrepancies between the allegations in Bleecker Street Article and the actual facts. We are confident that investors who know us will stand by our side."

The following presents the Company's rebuttal to the major allegations in the article.

HARBIN, China, July 10, 2014 /PRNewswire/ -- China XD Plastics Company Limited (NASDAQ: CXDC, "China XD Plastics" or the "Company"), one of China's leading specialty chemical players engaged in the development, manufacture and sale of polymer composite materials primarily for automotive applications, today responded to the allegations raised by an article posted on Seeking Alpha's website dated July 10, 2014 by Bleecker Street Research. China XD Plastics believes that Bleecker Street Research's article contains numerous errors of facts, misleading speculations and malicious interpretation of events. China XD will consider and decide on the necessary and appropriate course of action in response to the allegations. China XD Plastics is committed to providing full and accurate disclosure to investors and to rebutting any false claims that attempt to undermine confidence in the Company's business, management, operations and corporate structure.

Management Discussion and Analysis

Revenues
 
Revenues were US$1,050.8 million, an increase of US$451.0 million, or 75.2%, as compared to US$599.8 million in 2012, due to approximately 50.5% increase in sales volume and 14.6% increase in the average RMB selling price of our products.

The increase of sales volume was driven by the strong demand of modified plastics in the PRC market and higher penetration of our business in our existing markets supported by our additional 30 production lines, which commenced production in December 2012, as well as the marketing efforts to develop new customers, in particular those in Eastern and Southwestern China. Such increase in demand was driven by increasing demand for middle and high-end automobiles by Chinese consumers, continuing substitution of imported modified plastics by domestic suppliers, as well as the increase of plastic content on the per-vehicle-basis in China with even higher adoption rate in higher-end automobile models than low-end ones. The increase of average RMB selling price was mainly due to the shift of product mix towards higher-end products.

Net Income

As a result of the above factors, we had a net income of US$133.8 million in 2013 compared to net income of US$85.9 million in 2012.

Our financial condition continues to improve as measured by an increase of 55.9% in stockholders’ equity as of December 31, 2013 compared to December 31, 2012. Time deposits increased by 486.0%. We generally put our cash deposits with Chinese local banks to generate interests. Accounts receivable increased by 96.3% as a result of increase in revenues and increase in DSO from 56 days for the year ended December 31, 2012 to 72 days for the year ended December 31, 2013.  Inventory increased by 85.1% due to the anticipation of the increase of customer demand in the following quarters. Short-term loans increased by 94.1% due to the need to support our future capacity expansion in Southwest China. Accounts payable increased by 1,625.4% due to the 30 days new payment terms renegotiated with our domestic raw material suppliers, a shift from prepayment to suppliers in the past, in order to strengthen our working capital. Accrued expenses and other current liabilities increased by 62.5% due to the increase of payables for purchase of property, plant and equipment to expand the production capacity.

Favor Sea Limited Announces Pricing of Guaranteed Senior Notes 

China XD Plastics Company Limited (NASDAQ: CXDC or the "Company"), one of China's specialty chemical players engaged in the development, manufacture and sale of modified plastics primarily for automotive applications, today announced that its wholly owned subsidiary, Favor Sea Limited (the "Issuer"), priced its international offering of guaranteed senior notes.

The offering consists of US$150 million aggregate principal amount of 11.75% guaranteed senior notes due 2019 (the "Notes"). The Issuer intends to use the net proceeds from the offering for repayment of indebtedness incurred by its PRC subsidiaries, for capital expenditure on a production base in Sichuan and for general corporate purposes. 

The Notes will be guaranteed on a senior basis by the Company and Xinda Holding (HK) Company Limited, a subsidiary wholly owned by the Issuer (the "Subsidiary Guarantor"). The Notes will be secured by a pledge of the shares of the Issuer held by the Company and a pledge of the shares of the Subsidiary Guarantor held by the Issuer. 

HARBIN, China, Dec. 23, 2013 /PRNewswire/ -- China XD Plastics Company Limited (NASDAQ: CXDC, "China XD Plastics" or the "Company"), one of China's leading specialty chemical players engaged in the development, manufacture, and sale of polymer composites primarily for automotive applications, today announced it broke ground on a 300,000 tons polymer composites production and R&D project in Southwest China that would expand production capacity by 300,000 metric tons and equipped with a professional research and development center and an independent training center.

China XD's southwest expansion project is situated in an area of 3,230,000 square feet in Nanchong City, Sichuan province, the hub of the economic circle in Chengdu and Chongqing. Within a 500-kilometer radius of the construction site, there are factories for automotive manufacturers such as First Automobile Group, Shanghai GM, Volvo, Changan Ford and Dongfeng, etc. The region is also home to industries of high-end applications that the Company has been pursuing, including China Southern Rail Corporation ("CSR") and China Northern Rail Corporation ("CNR") in the high-speed railway sector, and Xi'an Aircraft Industry (Group) Company Limited, Chengdu Aircraft Industrial (Group) Company Limited and Guizhou Aviation Industry (Group) Company Limited, etc. The mayor and municipal party secretary of Nanchong City joined the groundbreaking ceremony, marking the official commencement of the project in the southwest. At the groundbreaking ceremony, Mr. Jie Han, Chairman and CEO of China XD Plastics, said, "China XD breaking ground on a 300,000 tons polymer composites production and R&D project in Southwest China today is another critical milestone for the Company following the launch of 45,000, 120,000 and 225,000 metric tons production bases in tandem in Northeastern China. We are pleased to be here with the support of the provincial, municipal and district governments."

According to the its development plan, the Company plans to complete the project in approximately two years, funded with its existing cash, its future operating cash flows and loans. The decision to build the fourth production base follows China's 12th Five-Year Plan, which promotes green and environmental protection sectors and new material industries. The Company will benefit from favorable tax policies under China's Western Development Program by locating the project in Southwest China. The launch of the southwest base is expected to facilitate profit maximization for the Company, and on the basis that products from the northeast bases cover Northeastern and Northern China and radiate into Eastern China, this southwest base is expected to help fulfill the nationwide layout where products will cover Southwestern, Southern and Central China and further radiate into Eastern China, which will lay a solid foundation for maintaining a leading role in China's industries and as a result, help realize our transformation from a leading plastic new material enterprise in China to a leading specialty chemical player in Asia engaged in polymer composites.

HARBIN, China, Nov. 13, 2013 /PRNewswire/ -- China XD Plastics Company Limited (NASDAQ: CXDC or "the Company"), one ofChina's specialty chemical players engaged in the development, manufacture and sale of modified plastics primarily for automotive applications, today announced that its wholly owned subsidiary, Favor Sea Limited (the "Issuer"), intends to offer guaranteed senior notes (the "Notes"). The Notes will be guaranteed on a senior basis by the Company and Xinda Holding (HK) Company Limited (the "Subsidiary Guarantor"). The Notes will be secured by a pledge of the shares of the Issuer held by the Company and a pledge of the shares of the Subsidiary Guarantor held by the Issuer.

Third Quarter Fiscal 2013 Financial Results:

• Revenue was $293.1 million, an increase of 79.5% from $163.3 million in the third quarter of fiscal 2012
• Basic and diluted earnings per share for the third quarter of fiscal 2013 were $0.64, a significant increase when compared to basic and diluted earnings per share in the same period of the prior year, which were $0.40.

Mr. Jie Han, Chairman and Chief Executive Officer of China XD Plastics, commented, "I am pleased to report our solid revenue and earnings growth and positive business development. Although gross profit margin declined for the three month period ended September 30 2013 mainly due to our marketing strategy such as discounts on listed prices since the fourth quarter of 2012, this strategy has helped us achieve tremendous progress in market penetration, especially in East China, the largest automobile market in China. Revenues from East China and North China during the third quarter of fiscal 2013 increased by 152.8% and 75.7% compared to the third quarter of 2012. Furthermore, we continued our entry into Southwest China Market on a solid footing with 3.2% revenue contribution from the region during the third quarter of 2013. Our gross profit margin improved to 22.4% during the third quarter of 2013, following the trend of the second quarter, primarily due to our gradual reduction of sales discounts and shift to higher margin products. The improvement in gross profit margin during the third quarter as compared to our first two quarters speaks volume of our strategy execution. As evidenced by the higher volumes shipped, we continue to experience strong demand for our products across our portfolio. As market demand grows for our higher-end products and as part of our long-term growth strategy, we remain committed to our investment in research and development in order to enhance our product offerings, especially for the higher-end applications. We believe this strategy is the key to further strengthening our market position and will help us deliver long-term value for our stockholders.

Business Outlook and Guidance

Given the Company's positive outlook on customer demand and successful geographic market penetration with the backdrop of on-schedule ramp-up of its production capacity during the second quarter of 2013, the Company now reiterates its annual guidance and expects revenues for fiscal 2013 to range between $960 million and $1 billion and net income for fiscal 2013 to range between $117 million and $132 million]. This forecast excludes any non-cash charges related to deferred income tax benefit, stock based compensation and change in fair value of existing derivative liabilities and is based on constant exchange rates and reflects the Company's current and preliminary view, which is subject to change.

Mr. Han concluded, "With our committed practice of business strategy periodic review and timely adjustment in response to the ever-changing business environment, we continue to execute our business plan in multiple fronts. We generated solid operational results and further enhanced our position in the marketplace especially amidst current challenging economic conditions both globally and nationally. We are pleased with the development of our product mix, gross margin improvement over the first two quarters of 2013 and our market penetration in different regional markets, all key areas that we believe will give us significant competitive advantages as we continue to expand our customer base and increase sales in China's automotive modified plastics market. In light of our business development so far this year and positive growth trends for the sector and our business, we remain optimistic about our business and growth this year. 2013 marks an exciting year with both opportunities and challenges for China XD. The construction of our fourth production base with an annual capacity of 300,000 metric tons in Sichuan is underway. Once our southwest production base is completed and in operation by the end of 2015, we will be able to effectively cover the entire country geographically and reach our goal of 10% market penetration with our major products, with our southwest production base covering southwest and central China and reaching into east China and our northeast production bases covering northeast and north China and reaching into east China."

Second Quarter Fiscal 2013 Financial Results:

• Revenues were $202.2 million, an increase of 39.7% from $144.7 million in the second quarter of 2012
• Gross profit was $37.2 million, an increase of 5.4% from $35.3 million in the second quarter of 2012
• Gross profit margin was 18.4%, compared to 24.4% in the second quarter of 2012
• Net income was $20.8 million, compared to $22.8 million in the second quarter of 2012
• Basic and diluted earnings per share were $0.32, compared to $0.36 and $0.33 of the same period of the prior year, respectively.

Mr. Jie Han, Chairman and Chief Executive Officer of China XD Plastics, commented, "I am pleased to report our solid revenue growth and positive business development especially during the changing and challenging macro environment affecting different industries in China. Although gross profit margin declined during the first half of 2013 mainly due to our marketing strategy such as discounts on listed prices since the fourth quarter of 2012, this strategy has helped us achieve tremendous progress in market penetration, especially in East China, the largest automobile market in China. Revenues from East China and North China during the second quarter of Fiscal 2013 increased by 88.5% and 44.8% compared to the second quarter of 2012. Furthermore, we initiated our entry to Southwest China Market on a solid footing with 4.8% revenue contribution from the region during the second quarter of 2013. As previously reported during the first quarter's earnings release, we expected gross margin in the second quarter to improve to approximately 18.0% due to our gradual reduction of the sales discounts. The improvement in gross margin during the second quarter as compared to our first quarter speaks volume of our strategy execution. As evidenced by the higher volumes shipped, we continue to experience strong demand for our products across our portfolio. As market demand grows for our higher-end products and as part of our long-term growth strategy, we remain committed to our investment in research and development in order to enhance our product offerings especially for the higher-end applications. We believe this strategy is the key to further strengthening our market position and will help us deliver long-term value for our stockholders."

Business Outlook and Guidance

Given the Company's positive outlook on customer demand and successful geographic market penetration with the backdrop of on schedule ramp-up of its production capacity during the second quarter of 2013, the Company now reiterates its annual guidance and expects revenues for fiscal 2013 to range between $935 million and $1 billion and net income for fiscal 2013 to range between$100 million and $132 million. This forecast excludes any non-cash charges related to deferred income tax benefit, stock based compensation and change in fair value of existing derivative liabilities and is based on constant exchange rates and reflects the Company's current and preliminary view, which is subject to change.

Mr. Han concluded, "Thanks to our committed practice of business strategy periodic review and timely adjustment in response to the ever-changing business environment, we continue to execute our business plan in multiple fronts. We generated solid operational results and further enhanced our position in the marketplace especially amidst current challenging economic conditions both globally and nationally. We are pleased with the development of our product mix, gross margin improvement over the first quarter of 2013 and our market penetration in different regional markets, all key areas that we believe will give us significant competitive advantages as we continue to expand our customer base and increase sales in East and Southwest China markets. In light of our business development so far this year and positive growth trends for the sector and our business, we remain optimistic about our business and growth this year. 2013 marks an exciting year with both opportunities and challenges for China XD. The construction of our fourth production base with annual capacity of 300,000 metric tons in Sichuan is underway. Once our southwest production base is completed and in operation, we will be able to effectively cover the entire country geographically and reach our goal of 10% market penetration with our major products, with our southwest production base covering southwest and central China and reaching into east China and our northeast production bases covering northeast and north China and reaching into east China."

First Quarter 2013 Financial Results

• Revenues for the first quarter of fiscal 2013 were $171.0 million, representing a year-over-year increase of 38.8% from $123.2 millionin the first quarter of fiscal 2012.
• Gross profit for the first quarter of fiscal 2013 was $29.2 million, down 6.4% from $31.2 million in the first quarter of fiscal 2012. Gross margin was 17.1%, compared to 25.3% in the same period of the prior year.
• Net income for the first quarter of fiscal 2013 was $14.5 million, compared to a net income of $20.6 million for the same period of the prior year. This decrease is primarily due to lower gross profit margin, and higher G&A and R&D expenses.
• Basic and diluted earnings per share were $0.23, compared to last year's $0.32 and $0.32, respectivel

Mr. Jie Han, Chairman and Chief Executive Officer of China XD Plastics, commented, "I am pleased to report our solid revenue growth and positive business development especially during the changing and challenging macro environment affecting different industries in China. Although gross margin declined during the first quarter of 2013 mainly due to our marketing strategy such as discounts off the original prices since the fourth quarter of 2012, this strategy has helped us achieve tremendous progress in market penetration, especially in East China, the largest automobile market in China. Revenues from East China during the first quarter of Fiscal 2013 increased by 113.9%, followed by 21.5% and 16.9% from Northeast China and North China Markets compared to the first quarter of Fiscal 2012. As evidenced by the higher volumes shipped, we continue to experience strong demand for our products across our portfolio. As market demand grows for our higher-end products and as part of our long-term growth strategy, we remain committed to our investment in research and development in order to enhance our product offerings especially for the higher-end applications. We believe this strategy is the key to further strengthening our market position and will help us deliver long-term value for our stockholders. The 30 additional production lines installed in December of 2012 ramped up as scheduled during the first quarter of 2013, 58% utilized during the first quarter of Fiscal 2013, and are geared to reach similar utilization as the rest of production lines in the second quarter."

Business Outlook and Guidance

Given the Company's positive outlook on customer demand and successful geographic market penetration with the backdrop of on schedule ramp-up of its production capacity during the first quarter of 2013, the Company now reiterates its annual guidance and expects revenues for fiscal 2013 to range between $935 million and $1 billion and net income for fiscal 2013 to range between $100 million and $132 million. This forecast excludes any non-cash charges related to deferred income tax benefit, stock based compensation and change in fair value of existing derivative liabilities and is based on constant exchange rates and reflects the Company's current and preliminary view, which is subject to change.

Mr. Han concluded, "Thanks to our committed practice of business strategy periodic review and timely adjustment in response to the ever-changing business environment, we continue to execute our business plan in multiple fronts. We generated solid operational results and cash flows and further enhanced our position in the marketplace especially amidst current challenging economic conditions both globally and nationally. We are pleased with the development of our product mix and our market penetration in different regional markets, both key areas that we believe will give us significant competitive advantages as we continue to expand our customer base and increase sales in China's automotive modified plastics market. In light of our business development so far this year and positive growth trends for the sector and our business, we remain optimistic about our business and growth this year. 2013 marks an exciting year with both opportunities and challenges for China XD. As previously reported, we plan to commerce constructing our fourth production base with annual capacity of 300,000 metric tons in Sichuan in the second half of this year. Once our southwest production base is completed and in operation in 2015, we will be able to effectively cover the entire country geographically and reach our goal of 10% market penetration with our major products, with our southwest production base covering southwest and central China and reaching into east China and our northeast production bases covering northeast and north Chinaand reaching into east China."

Second Quarter 2012 Results

• Revenue was $144.7 million, an increase of 64.0% from $88.2 million in the second quarter of fiscal 2011
• Gross profit was $35.3 million, an increase of 60.0% from $22.0 million in the second quarter of fiscal 2011
• Gross profit margin was 24.4%, compared to 25.0% in the second quarter of fiscal 2011
• Net income was $22.8 million, compared to $14.4 million in the second quarter of fiscal 2011
• Basic and diluted earnings per share were $0.36 and $0.33, respectively, a significant increase when compared to last year's results, which were at $0.30 and $0.30, respectively.
• Total volume shipped was 53,866 metric tons, up 48.1% from 36,367 metric tons in the second quarter of fiscal 2011

Mr. Jie Han, Chairman and Chief Executive Officer of China XD Plastics, commented "I am pleased to report another quarter of record revenues and profit growth. Although the global economy has not been as favorable as before in relation to our business, we made timely adjustment to our operation, marketing and business development strategy, by focusing more on the market development in East and North China, which offset slowdown elsewhere and led to the good performance of our business objective during the first half of 2012. As evidenced by the higher volumes shipped, we continue to experience strong demand for our products across our portfolio. The increase in average selling prices was partially due to our continued shift in sales mix to higher value-added products. As market demand grew for these higher margin products and as part of our long-term growth strategy, we remain committed to our investment in research and development. We believe this strategy is the key to further strengthening our market position and will help us deliver long-term value for our stockholders. In line with our schedule, our third production base launched in December 2011, which added an additional 90,000 metric tons of annual production capacity across 20 new production lines, contributed approximately 20,565 tons of production during the second quarter of 2012. In addition, there are three additional workshops which are currently under construction in our third production base and are expected to be completed and deployed with 30 additional production lines in the second half of 2012 to further expand our annual capacity potential by approximately 135,000 metric tons to support our future growth in 2013."

Business Outlook and Guidance

Given the Company's strong performance during the second quarter of 2012 and positive outlook on customer demand for its products for the remaining of 2012, the Company reiterates its revenues for fiscal 2012 to range between $550 million and $580 million, and non-GAAP adjusted net income to range between $82 million and $85 million, excluding any non-cash charges related to deferred income tax benefit, stock based compensation and change in fair value of existing derivative liabilities. This forecast based on constant exchange rates and reflects the Company's current and preliminary view, which is subject to change.

Mr. Han concluded, "Thanks to our committed practice of business strategy periodic review and timely adjustment in response to the ever-changing business environment, we continue to execute our business plan in multiple fronts. We generated strong operational and financial results and further enhanced our position in the marketplace especially amidst current challenging economic conditions both globally and nationally. During the second quarter, we kept growing our product portfolio to offer our customers more higher-value added products in a cost effective manner and solidified our footprint in North and East China. We are pleased with the development of our product mix and product certifications, both key areas that we believe will give us significant competitive advantages as we continue to expand our customer base and increase sales. Looking ahead, we continue to be enthusiastic about the prospects for our business. Demand for our products remains strong, the production contribution from capacity and product lines installed in December 2011 is on schedule, and we are making the necessary investments in R&D to ensure we are well positioned to leverage positive market dynamics both now and in the future. In light of our strong performance in the second quarter of 2012 and positive growth trends for the sector and our business, we remain optimistic about business and growth in 2012."

First Quarter Fiscal 2012 Financial Highlights:

• Revenue was $123.2 million, an increase of 61.8% from $76.1 million in the first quarter of fiscal 2011
• Gross profit was $31.2 million, an increase of 68.7% from $18.5 million in the first quarter of fiscal 2011
• Gross profit margin was 25.3%, compared to 24.3% in the first quarter of fiscal 2011
• Net income was $20.6 million, compared to $11.9 million in the first quarter of fiscal 2011
• Total volume shipped was 45,835 metric tons, up 32.6% from 34,558 metric tons in the first quarter of fiscal 2011

Mr. Jie Han, Chairman and Chief Executive Officer of China XD Plastics, commented, "I am pleased to report another quarter of record revenues and profit growth. As evidenced by the higher volumes shipped, we continue to experience strong demands for our products across our portfolio. The increase of higher average selling prices, partially resulting from our continued shift in sales mix to higher value-added products, drove gross margin expansion for this quarter. As market demand grew for these higher margin products and as part of our long-term growth strategy, we remain committed to our investment in research and development. We believe this strategy is the key to further strengthening our leading market position and will help us deliver long-term value for our stockholders. On track of our schedule, our third production base launched in December 2011 with additional 90,000 metric tons of annual production capacity across 20 new production lines have contributed approximately 16,000 tons of production during the first quarter of 2012. In addition, there are three additional factories which are currently in construction in our third production base and are expected to be completed and deployed with 30 additional production lines in the second half of 2012 to further expand our annual capacity potential by approximately 135,000 metric tons to support our future growth in 2013."

Business Outlook and Guidance

Given the Company's strong performance during the first quarter of 2012 and positive outlook on customer demand for its products for the remaining of 2012, the Company reiterates its revenues for fiscal 2012 to range between $550 million and $580 million, and non-GAAP adjusted net income to range between $82 million and $85 million, excluding any non-cash charges related to deferred income tax benefit, stock based compensation and change in fair value of existing derivative liabilities. This forecast based on constant exchange rates and reflects the Company's current and preliminary view, which is subject to change.

Mr. Han concluded, "we continue to execute our business plan in multiple fronts in which we generated strong operational and financial results and further built on our leadership position in the marketplace. We are pleased with the development of our product mix and product certifications, both key areas we believe give us significant competitive advantages as we continue to expand our customer base and increase sales. Looking ahead, we continue to be enthusiastic about the prospects for our business. Demand for our products remains strong, the production contribution from capacity and product lines installed in December 2011 is on schedule, and we are making the necessary investments in R&D to ensure we are well positioned to leverage positive market dynamics both now and in the future. In light of our strong performance in the first quarter of 2012 and positive growth trends for the sector and our business we remain optimistic about business and growth in 2012."

Fourth Quarter 2011 Results

• Revenue was $113.9 million, an increase of 57.3% from $72.4 million in the fourth quarter of fiscal 2010
• Gross profit was $29.3 million, an increase of 57.7% from $18.6 million in the fourth quarter of fiscal 2010
• Gross profit margin was 25.7%, compared to 25.6% in the fourth quarter of fiscal 2010
• Net income was $18.5 million, compared to $6.4 million in the fourth quarter of fiscal 2010
• Total volume shipped was 40,988 metric tons, up 37.1% from 29,907 metric tons in the fourth quarter of fiscal 2010
• Basic and diluted earnings per share were $0.29, a significant increase when compared to last year's results, which was at $0.14 and $0.09, respectively.

Mr. Jie Han, Chairman and Chief Executive Officer of China XD Plastics, commented "I am pleased to report another year of record revenues and profit growth. As evidenced by the higher volumes shipped, we continue to experience strong demands for our products across our portfolio. The increase of higher average selling prices, partially resulting from our continued shift in sales mix to higher value-added products, drove gross margin expansion for the year. As market demand grew for these higher margin products and as part of our long-term growth strategy, we continued to increase our investment in research and development. We believe this strategy is the key to further strengthening our leading market position and will help us deliver long-term value for our stockholders. In addition, we successfully launched our third production base in December 2011 with additional 90,000 metric tons of annual production capacity across 20 new production lines stationed in two factories in the production base. The additional capacity already contributed to the Company's production during the first quarter of 2012. In addition, there are three additional factories which are currently in construction in our third production base and are expected to be completed and deployed with 30 additional production lines in the second half of 2012 to further expand our capacity potential by approximately 135,000 metric tons to support our future growth in 2013."

Business Outlook and Guidance

Given the Company's strong performance during the fiscal year 2011 and positive outlook on customer demand for its products for 2012, the Company now expects revenues for fiscal 2012 to range between $550 million and $580 million, and non-GAAP adjusted net income to range between $82 million and $85 million, excluding any non-cash charges related to stock based compensation and change in fair value of existing derivative liabilities. This forecast based on constant exchange rates and reflects the Company's current and preliminary view, which is subject to change.

Mr. Han concluded, "2011 marked another excellent year of performance for China XD Plastics in which we generated strong operational and financial results and further built on our leadership position in the marketplace. We are pleased with the development of our product mix and product certifications, both key areas we believe give us significant competitive advantages as we continue to expand our customer base and increase sales. Looking ahead, we continue to be enthusiastic about the prospects for our business. Demand for our products remains strong, the implementation of additional capacity and product lines is on schedule, and we are making the necessary investments in R&D to ensure we are well positioned to leverage positive market dynamics both now and in the future. In light of our strong performance in 2011 and positive growth trends for the sector and our business we remain optimistic about business and growth in 2012."

We expect that we will be able to meet our needs to fund operations, capital expenditures and other commitments in the next 12 months primarily with operating cash flows and bank borrowings. On August 15, 2011, we entered into the Securities Purchase Agreement with MSPEA, XD Engineering Plastics and Mr. Han, pursuant to which MSPEA purchased 16,000,000 shares of Series D Preferred Stock for a total consideration of US$100 million. On September 28, 2011, we issued 16,000,000 shares of Series D Preferred Stock and received total gross proceeds of US$100 million in cash.

We may, however, require additional cash resources due to change in business conditions or other future developments. If these sources are insufficient to satisfy our cash requirements, we may seek to sell additional equity or debt securities or obtain a credit facility. The sale of additional equity or equity-linked securities could result in additional dilution to shareholders.

Third Quarter 2011 Results

CXDC: Raising Estimates On A Standout Quarter, Higher Guidance, Auditor Upgrade

2Q11 Beat: CXDC reported its 2Q11 revenue and Non-GAAP net income of $88.2 MM and $12.3 MM, with diluted EPS of $0.26, beating our expectations of $76.8 MM, $12.2 MM, and $0.25, respectively.

Volume & ASP Update: Total shipment volume was reported at 36,513 tons with an ASP of $2,415/ton, growing by 23.5% and 15.2% y-o-y, respectively.

Strong Free Cash Flow Generation: In 2Q, the company generated $30.4 MM in operating cash flow and $12.9 MM in free cash flow, compared to $16.5 MM and $16.3 MM in 2Q10.

New Plant Construction to Finish by Year End 2011: CXDC’s recently announced capacity expansion with $67 MM total investments in new plant build-out, which includes a 50-acre land, 5 machine workshops, is expected to be completed by the end of 2011. The company recently bought 20 additional production lines and 77 sets of R&D equipment, which will be fully utilized in 1Q12 and bring in another 90,000 tons/year of capacity, resulting in total capacity to 255,000 tons/year for next year from current 165,000 tons/year.

KPMG is New Auditor: Effective from August 15, 2011, the company officially appointed KPMG as its new auditor. We were told that KPMG had been working with CXDC for quite some time to help the company improve its financial reporting.

$100 MM Equity Investment from Morgan Stanley Private Equity: CXDC also announced $100 MM equity investment from Morgan Stanley Private Equity Asia (MSPEA) through purchasing 16 MM shares of Series D Junior convertible preferred shares with nitial conversion price of $6.25.

Guidance Raised: CXDC raised its revenue and Non-GAAP net income guidance to $320 MM ~ $350 MM and $53 MM ~ $56 MM to reflect the company’s higher expectations on market demand and its pricing power.

Revising Estimates: We are raising our estimates on 3Q sales, Non-GAAP earnings, and EPS to $81.2 MM, $12.7 MM, and $0.27, based on our shipment volume and ASP assumptions of 35,724 tons and $2,272/ton. For full year FY11, we are expecting top-line, bottom-line, and EPS of $333.3 MM, $55.7 MM, and $1.17, respectively. We are also introducing our FY12 estimates of $404.7 MM for sales, $61.4 MM for earnings, and $1.29 for EPS.

Valuation: CXDC shares were up ~40% on the quarterly results, positive news on the MSPEA investment and KPMG’s appointment. However, even after the share price move, CXDC is still only trading at a P/E multiple of ~4.1x and ~3.7x to our FY11 and FY12 Non-GAAP earnings estimates. We maintain Outperform rating and $10.00 PT.

Notice Regarding Privacy and Confidentiality:


This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member FINRA.
Member SIPC.

Notice Regarding Privacy and Confidentiality:

This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member SIPC.
Member FINRA.

Pursuant to PRC laws and regulations, construction or expansion of a building or a production facility is subject to various permits and approvals from different government authorities. In connection with the construction of Harbin Xinda’s factory and production facilities, which has already been completed and put into operation, we obtained a project approval from Administration Committee of Harbin Economic and Technological & High-tech Development Zone and an approval for the environmental impact assessment report on the construction project of Harbin Xinda in 2003. However, certain other necessary permits relating to the construction and operation of Harbin Xinda’s factory and production facilities are outstanding. Failure to obtain all necessary approvals/permits may subject us to various penalties, such as fines or being required to vacate from the facilities where we currently operate our business.

HARBIN, China, June 13, 2011 /PRNewswire-Asia/ -- China XD Plastics Company Limited ("China XD Plastics" or the "Company"), (Nasdaq: CXDC), one of the leading Chinese manufacturers engaged in the development, manufacture, and distribution of modified plastics primarily for use in automotive applications in China, today announced that its Board of Directors has approved the plan and budget for subsidiary Harbin Xinda Macromolecule Material Co., Ltd. ("Harbin Xinda") to acquire 20 fully automatic modified plastics production lines and has authorized the management to implement the plan. The additional 20 production lines, which will be utilized mainly for the manufacture of higher value-added products, are expected to increase annual production capacity by 90,000 metric tons. In order to accelerate the Company's development of new products, Harbin Xinda will also purchase 77 sets of specialized research and development equipment to meet the growing demand for new, and higher value-added product development and inspection.

Based on past performance and current expectations, we believe our cash and cash equivalents and cash generated from operations will satisfy our working capital needs, capital expenditures and other liquidity requirements associated with our operations for at least the next 12 months.

First Quarter Results:

• Revenue was a record $76.1 million, an increase of 52.2% from the first quarter of fiscal 2010
• Gross profit was $18.5 million, an increase of 55.5% from the first quarter of fiscal 2010
• Gross profit margin was 24.3%, compared to 23.8% in the first quarter of fiscal 2010
• Net income attributable to common shareholders was $11.9 million, compared to $10.5 million in the first quarter of fiscal 2010. Earnings per common share were $0.25 on a fully diluted basis
• Adjusted net income was $11.5 million or $0.24 per fully diluted share

Mr. Jie Han, Chairman and Chief Executive Officer of China XD Plastics, commented, "In the first quarter of 2011, we delivered another strong top- and bottom-line performance, building on our track record of consistent profitable growth. We continue to benefit from the healthy demand for automobiles in China, coupled with the ongoing trend of increasing modified plastic content per vehicle.  As a result of these underlying drivers, our total volume shipped in the first quarter 2011 reached 34,512 metric tons, up from 23,182 metric tons in the first quarter 2010. In addition, our increased production of high value-added modified plastic products allowed us to deliver further margin improvement.  

In light of continued favorable trends in the Chinese automotive industry, increasing modified plastics content per vehicle in China, a healthy macroeconomic environment and the continued execution of its growth strategy, the Company expects its fiscal year 2011 revenue to be in the range of $280 million and $310 million and it expects its fiscal year 2011 non-GAAP adjusted net income to be in the range of $48 million and $51 million, excluding any non-cash charges related to stock based compensation and the change in fair value of the existing derivative liabilities and stock-based compensation. This forecast reflects the Company's current and preliminary view, which is subject to change.

Rodman and Renshaw on CXDC              5/13/2012

CXDC: 1Q11 Earnings Update

1Q11 Beat: CXDC reported its 1Q11 revenue and Non-GAAP net income of $76.1 MM and $11.5 MM, with diluted EPS of $0.24, beating our expectations of $61.6 MM, $9.7 MM, and $0.20, respectively. Revenue grew by 52.2% Y-o-Y from $50.0 MM in 1Q10 and 5.1% sequentially from $72.4 MM in 4Q10. Gross margin was $18.5 MM, or 24.3% of total revenue, compared to 1Q10’s $11.9 MM or 23.8% and 4Q10’s $18.6 MM or 25.6% in margin.

1Q11 Segment Contribution & Margins: Revenue contribution and gross margins for the different segments were as follows – Modified PP – 58% and 22%; Modified Nylon 6% and 26%; Modified AB 4% and 25%; Alloy Plastic 9% and 30%; Engineering Plastic 14% and 31%; Environmentally Friendly Plastic 9% and 33%.

Volume & ASP Update: During quarter, total shipment volume was reported at 34,512 tons with an ASP of $2,206/ton. This compares to 23,182 tons in volume and $2,158/ton in ASP for 1Q10 and 29,907 tons in volume and $2,421/ton in ASP for 4Q10. We believe ASP should trend within the recent historical range. As per management, the company’s contracts with its customers allows for volatility in raw materials to be passed on.

50 Acre Land Purchase For Long-Term Expansion: CXDC has entered into a land use right purchase agreement to pay $14.6 MM to buy a 50 acre property in South Harbin Industrial Park for long-term capacity expansion over the next 3 years. Management maintained its intent to seek 30% annual capacity expansion in 2012 and 2013 each. We believe the market would like to see the company’s internal cash flows support this growth.

FY11 Guidance Reiterated: Management reiterated its FY11 guidance of $280 MM ~ $310 MM for top-line and $48 MM ~ $51 MM for bottom-line (Non-GAAP).

2Q11 Estimates: For 2Q11, we are now projecting revenue and Non-GAAP earnings of $76.8 MM and $12.2 MM, with diluted Non-GAAP EPS of $0.25 based on our assumptions of ~34,800 tons in shipment volume and $2,206/ton in ASP. For full year FY11, our estimates are $307.6 MM, $49.2 MM, and $1.02 per share, respectively.

Valuation: At current levels CXDC is trading at a P/E multiple of ~4.3x to our FY11 Non-GAAP earnings estimates. This multiple is below industry averages for both the modified plastics industry and the auto parts industry. We are comfortable maintaining our $10 price target on CXDC, which translates into P/E multiple of ~9.8x to our estimates for FY11, compared to 26.6x for Kingfa Science & Technology (600143.SH, Not Rated) for the same period (based on FactSet consensus estimates). We believe this is reasonable multiple for a company that has substantial growth opportunities ahead.


Notice Regarding Privacy and Confidentiality:

This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member FINRA.
Member SIPC.

HARBIN, China, April 8, 2011 /PRNewswire-Asia/ -- China XD Plastics Company Limited ("China XD Plastics" or the "Company"), (Nasdaq: CXDC), one of the leading Chinese manufacturers engaged in the development, manufacture, and distribution of modified plastics primarily for use in automotive applications in China, today announced that its board of directors has authorized a share repurchase program of up to $10 million of the Company's common stock through May 31, 2012. At the same time, the Company announced that it will purchase land use rights for a 50 acre parcel of land to support its manufacturing capacity expansion and growth strategy from 2011 to 2013.

Rodman and Renshaw on CXDC                                    4/04/2011

CXDC: 4Q10 Earnings Update

4Q10 Beat: CXDC reported its 4Q10 revenue and Non-GAAP net income of $72.4 MM and $17.2 MM, with diluted EPS of $0.36, beating our expectations of $60.9 MM, $9.6 MM, and $0.19, respectively. Revenue grew by 75.6% Y-o-Y from $41.2 MM in 4Q09 and 10.8% sequentially from $65.3 MM in 3Q10. Gross margin was $18.6 MM, or 25.6% of total revenue, compared to 4Q09’s $9.7 MM or 23.6% and 3Q10’s $16.3 MM or 24.9% in margin. Margin improvement was primarily due to a continued shift in the product mix toward more high-margin plastics. Non-GAAP Net income grew by 114.6% from $8.0 MM in 4Q09 to $17.2 MM in this quarter, representing a net margin of 23.7%.

Full Year Results: On a full year basis, the company generated $249.8 MM in revenue, $47.1 MM in Non-GAAP earnings, and $1.05 in Non-GAAP diluted EPS. Top-line grew by 84.0% y-o-y, while bottom-line increased by 94.8%. Gross profit reached $61.5 MM, representing 24.6% in margin, compared to $30.6 MM of gross profit and 22.5% in margin. The company generated $33.7 MM in operating income, implying a 13.5% in EBIT margin.

Volume & ASP Trend: During 4Q10, total shipment volume was reported at 29,907 tons with an ASP of $2,421/ton. This compares to 23,620 tons in volume and $1,746/ton in ASP for 4Q09. For the full year, total shipment volume reached 113,721 tons, with ASP of $2,196/ton, compared to 73,796 tons and $1,839/ton in FY09. Total capacity goal is to reach 165,000 tons in FY11 from the current 135,000 tons, representing ~22% increase from FY10. Management expects the overall auto market to grow 10%~15% this year, in line with CAAM projections. However, the company believes demand for modified plastics should grow faster than overall auto market since the usage of plastics per vehicle continues to increase rapidly.

Margin Expectations: For FY11, management expects gross margin to be maintained at current levels. Management maintains that its contracts allow it to pass on higher raw material costs to customers. The company should also be expected to increase contribution from Engineered Plastics. From a longer term perspective the emphasis on R&D should be a positive on margins also.

FY11 Guidance: Management is guiding for revenue and Non-GAAP earnings of $280 MM~$310 MM and $48 MM~$51 MM. We revised our financial projections according to the new guidance: for 1Q11, we expect CXDC to generate revenue, Non-GAAP earnings, and diluted EPS of $61.6 MM, $9.7 MM, and $0.20. For the full year, our projections are $301.4 MM, $48.1 MM, and $1.01, respectively.

Valuation: At current levels CXDC is trading at a P/E multiple of ~5.0x to our FY11 Non-GAAP earnings estimates. This multiple is below industry averages for both the modified plastics industry and the auto parts industry. We are comfortable maintaining our $10 price target on CXDC, which translates into P/E multiple of ~9.9x to our estimates for FY11.

Notice Regarding Privacy and Confidentiality:

This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member FINRA.
Member SIPC.

Fourth Quarter Results:

• Revenue was a record $72.4 million, an increase of 75.6% from the fourth quarter of fiscal 2009
• Gross profit was $18.6 million, an increase of 90.5% from the fourth quarter of fiscal 2009 Gross profit margin was 25.6%, compared to 23.6% in the fourth quarter of fiscal 2009
•  Net income attributable to common shareholders was $6.5 million, compared to net loss of $6.0 million in the fourth quarter of fiscal 2009. Earnings per common share were $0.14 on a fully diluted basis 
• Adjusted net income was $17.2 million or $0.36 per fully diluted share

"We continued to execute on a number of strategic initiatives throughout 2010, highlighted by the launch of our newly expanded production lines designated for alternative energy vehicles and other high-end applications. In addition to increasing our production capacity from 120,000 metric tons to 165,000 metric tons, we believe that the new production lines strengthen our position as a leading supplier of high value-added modified plastics for use in alternative energy vehicles, a rapidly expanding segment of the Chinese automobile market. We expanded our customer base in this segment in the fourth quarter with having started delivering our products to Hafei Dongyang and with the signing of an agreement with Ningbo Huazhong, a certified automotive parts supplier for a number of leading automotive OEMs in China, to develop and supply modified plastics for use in electric vehicles. We believe the environmental benefits and strong government support for the alternative energy vehicles industry will help support our continued penetration of this market in the year ahead.

In light of continued favorable trends in the Chinese automotive industry, increasing modified plastics content per vehicle in China, a healthy macroeconomic environment and the continued execution of its growth strategy, the Company expects its fiscal year 2011 revenue to be in the range of $280 million and $310 million and it expects its fiscal year 2011 non-GAAP adjusted net income to be in the range of $48 million and $51 million, excluding any non-cash charges related to stock based compensation and the change in fair value of the existing derivative liabilities and stock-based compensation. This forecast reflects the Company's current and preliminary view, which is subject to change.

Rodman and Renshaw on CXDC                     01/21/2011

CXDC: Expecting Auto Plastics Providers To Remain Busy In 2011 

Another Robust Year For Chinese Auto Market: The Chinese auto sector ended the year of 2010 with total production and sales volume of 18.3 MM and 18.1 MM units, representing Y-o-Y growth of 32.44% and 32.37%, respectively, making China the largest auto market globally again. Passenger Vehicles recorded production and sales volume of 13.90 MM and 13.76 MM for the year, growing by 33.8% and 33.2% from 2009, while Commercial Vehicles delivered 4.4 MM and 4.3 MM units of production and sales, implying Y-o-Y growth of 28.2% and 29.9%, respectively.

Recent Policy Shifts Should Have Limited Impact On 2011 Auto Sales: In December 23, 2010, Beijing municipal government announced an official plan to limit the new issuance of car license plates to 20,000 units per month, or 240,000 plates for full year 2011, an effort to ease the serious traffic congestion issue for the capital city. In addition, the tax credit on small car (engine of 1.6L or less) purchase will end in 2011, so Chinese buyers will have to pay the original 10% tax on their car purchase. Although these measures could potentially affect consumers’ new car purchase activities in the city, we do believe the impact of this new rule could prove to be limited.

Expect Modest Uptick On Both ASP and Cost Due To Inflation: We believe inflation could be a major concern in 2011 for emerging markets like China, driven from stronger-than-expected commodity demand and over supply of money in these regions. We expect price of petrochemical products such as Polypropylene and ABS to trend higher in 2011. Furthermore, as one of the largest modified plastics suppliers in China by capacity and sales volume, CXDC should be able to pass on at least some of the higher cost to downstream thanks to its flexible quarterly pricing mechanism with its clients.

New Capacity In Place To Support 2011 Growth: Back from CXDC’s Investors Day in December, we were impressed to see that the new production facility was already up and running. Equipped with machines from Western Europe, the new production lines are expected to be fully operational now, with a total capacity of 135,000 tons/year.

4Q10 Preview: Going into earnings, we are expecting CXDC to deliver a strong 4Q. We are maintaining our estimates of $60.9 MM and $9.6 MM in revenue and non-GAAP net income, with diluted non-GAAP EPS of $0.19. 

Valuation: At current levels CXDC is trading at P/E multiples of ~7.3x and ~7.0x to our FY10 and FY11 Non-GAAP earnings estimates. These multiples are below industry averages for both the modified plastics industry and the auto parts industry. We believe CXDC should be trading in line with the modified plastics industry given the growth opportunity associated with it. We are comfortable maintaining our $10 price target on CXDC, which translates into P/E multiple of ~13.6x and ~10.9x to our estimates for FY10 and FY11.


Notice Regarding Privacy and Confidentiality:

This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

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Rodman & Renshaw on CXDC                                                                   12/06/2010

New Production Lines To Target Alternative Energy Vehicles: We were in Harbin for CXDC’s investor day and opening ceremony for the company’s new 35,000 ton production facility on December 3^rd, 2010. Management intends to position the new facility for opportunities stemming from demand for advanced plastics in the alternative energy vehicle market. The opening ceremony was attended by high ranking city and government officials and also included members of academia who will be collaborating on R&D with CXDC post the recognition of its Macromolecule Research Institute as a Heilongjiang Enterprise Academy Member Workstation.

New Facility Completed In Record Time: We were impressed to see that the new production facility was already up and running. We were at the new facility on October 13, 2010 when construction was taking place in full swing. Management had promised getting the facility into production mode by its investor day and they delivered. Construction on the R&D center in the new facility remains to be completed. On completion of all construction there will be nine production lines and a new R&D facility. Most of the production equipment at the new facility is imported from western Europe. We believe contribution from production in the new facility could help provide some upside to our estimates for 4Q10.

Clarity On Capacity: Management expects the new production lines to be fully operational by January 2011. In a press release today the company provided the following details in regards to capacity for 2011. 

Theoretical capacity: 165,000 metric tons including existing 120,000 metric tons and newly installed 45,000 metric tons. 

Realistic capacity (based on production lines' standard utilization rate of 80%): 135,000 metric tons including existing 100,000 metric tons and newly installed 35,000 metric tons. Our projections are based on the 80% utilization rate of available capacity i.e. 135,000 metric tons. There may be upside to our numbers if utilization levels are higher.

Deserves A Better Multiple: We believe CXDC deserves a substantially better multiple than it is currently being given by the market. CXDC’s closest comparable Kingfa Science & Technology (600143-SHG, Not Rated), a Shanghai listed plastics company is trading at a P/E of 40x to its 2010 earnings for playing in the same opportunity and earning lower margins (GM of 16% in FY09 and 13.7% in FY08). Investors should note that with the additional 35,000 tons in capacity, CXDC is probably the largest advanced plastics player in China. The company is positioned to be an import substitution option for advanced plastics and we expect it to take market share from larger international players.

Valuation: At current levels CXDC is trading at P/E multiples of ~6.9x and ~5.9x to our FY10 and FY11 Non-GAAP earnings estimates. These multiples are below industry averages for both the modified plastics industry and the auto parts industry. We believe CXDC should be trading in line with the modified plastics industry given the growth opportunity associated with it. We are comfortable maintaining our $10 price target on CXDC, which translates into P/E multiple of ~13.6x and ~10.9x to our estimates for FY10 and FY11, compared to ~36x and ~27x for Kingfa Science & Technology (600143.SH, Not Rated) for the same period. We believe this is reasonable multiple for a company that has substantial growth opportunities ahead.


Notice Regarding Privacy and Confidentiality:

This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member FINRA.
Member SIPC.

Rodman & Renshaw on CXDC

A Strong Beat: CXDC reported its 3Q10 revenue and Non-GAAP net income of $65.3 MM and $12.4 MM, with diluted EPS of $0.28, beating our expectations of $46.2 MM, $7.1 MM, and $0.16 per share. This also beat street consensus (from FactSet) of $48.8 MM, $6.7 MM, and $0.15, respectively. Revenue grew by 80.5% Y-o-Y from $36.2 MM in 3Q09 and 5.4% sequentially from $62.0 MM in 2Q10, outpacing the overall automobile market in China. Gross margin was $16.3 MM, or 24.9% of total revenue, compared to 3Q09’s $8.4 MM or 23.3% and 2Q10’s $14.8 MM or 23.9% in margin. Margin improvement was primarily due to a continued shift in the product mix toward more high-margin plastics.

Key Takeaways: 1) We are expecting consensus numbers to be raised post the guidance provided on the earnings call 2) the company has been operating at high utilization levels and we expect this to continue in 2011 given the activity we have seen on the ground 3) guidance appears conservative; we are modeling for 4Q10 numbers to be closer to those in 3Q10 resulting in our projections coming ahead of what was provided by management. 4) the company’s price protection strategy has allowed them to ride out oil price volatility to keep gross margins stable at 22% to 24% over the last two years and we are modeling for this trend to remain intact 5) dilution related overhang is over, investors on the side lines now have a chance to come in to a much better capitalized company with fundamental industry support to their growth.

If Street Can’t Recognize Value…We believe the company remains highly under-valued relative to comparables. We view CXDC as having been very consistent with their operating performance and aiding the street with visibility and stability around revenue and earnings performance for which it is not getting credit. The company operates in a widely followed industry i.e. China Autos, where there is general market consensus on growth and profitability trends. It should not be difficult for the street to view CXDC as a very tangible story that stands to benefit from secular growth in advanced plastics uptake in auto production. Please see CXDC’s relative performance to Kingfa (600143-SHG, Not Rated) in pg. 3.

…Someone Else Will: CXDC is a profitable and growing public company currently trading at private valuations. Recently we have seen several instances of management teams of US listed Chinese companies proposing privatization. In our opinion valuation discrepancy has been a key driver for such developments. If the stock remains at these levels for an extended period with the company continuing to put up strong results we would not be surprised if PE shops operating on the ground in China take advantage. With a history of execution, we believe management today has more options to unlock value in the company that may not have been available to them previously.

Valuation: At current levels CXDC is trading at P/E multiples of ~6.2x and ~6.0x to our FY10 and FY11 Non-GAAP earnings estimates. We are comfortable maintaining our $10 price target on CXDC, which translates into P/E multiple of ~11.4x and ~10.9x to our estimates for FY10 and FY11.


Notice Regarding Privacy and Confidentiality: 

This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member FINRA.
Member SIPC.

Third Quarter 2010 Results

• Revenue for the third quarter of 2010 increased 80.5% to $65.3 million, compared to $36.2 million in the same period of 2009. The increase in revenue is primarily attributable to increased sales volume, driven by the strong demand for the Company's automotive modified plastic products as a result of continued growth in automotive production and consumption in China.

• Gross profit for the third quarter of 2010 was $16.3 million, up 93.3% from $8.4 millionin the third quarter of 2009. Gross margin was 24.9% compared to 23.3% in the same period a year ago and 23.9% in the second quarter of 2010. The year-over-year increase in gross margin was due to the continuing shift in the Company's product mix to higher value products as a result of the Company's successful research, development and marketing efforts.

• Net income for the third quarter of 2010 was $12.3 million, compared to net income of $4.0 millionfor the same period a year ago.  

• In connection with the private placement of series C preferred stock in the first quarter of 2010, the Company recorded a dividend of $60for the series C preferred stock.

• Net income attributable to common shareholders for the third quarter of 2010 was $12.3 million. Income per share attributable to common shareholders was $0.28 and $0.28 per basic and fully diluted share, respectively.  

• Adjusted net income, excluding non-cash charges associated with stock based compensation, change in fair value of derivative liability and preferred dividend was $12.4 million, or $0.28 per basic and fully diluted share.

Business Outlook and Guidance

In light of continued favorable trends in the Chinese automotive industries, a healthy macroeconomic environment and the continued execution of its growth strategy, the Company reiterates its guidance for 2010.  The Company expects its 2010

• revenue to be in the range of $210 million and $230 million 

• non-GAAP adjusted net income to be in the range of $35 million and $37 million, excluding any non-cash charges related to stock based compensation and the change in fair value of the existing derivative liabilities and stock-based compensation.

The Company had previously expected its 2010

• revenue to be in the range of $185 million and $215 million 

• non-GAAP adjusted net income to be in the range of $30 million and $33 million.

Rodman & Renshaw on CXDC

3Q10 Beat: CXDC reported its 3Q10 revenue and Non-GAAP net income of $65.3 MM and $12.4 MM, with diluted EPS of $0.28, beating our expectations of $46.2 MM, $7.1 MM, and $0.16 per share. This also beat street consensus (from FactSet) of $48.8 MM, $6.7 MM, and $0.15, respectively. Revenue grew by 80.5% Y-o-Y from $36.2 MM in 3Q09 and 5.4% sequentially from $62.0 MM in 2Q10, outpacing the overall automobile market in China. Gross margin was $16.3 MM, or 24.9% of total revenue, compared to 3Q09’s $8.4 MM or 23.3% and 2Q10’s $14.8 MM or 23.9% in margin. Margin improvement was primarily due to a continued shift in the product mix toward more high-margin plastics. Non-GAAP Net income grew by 84% from $6.7 MM in 3Q09 to $12.4 MM in this quarter, representing a net margin of 18.9%. The company ended the quarter with a total of $15.5 MM in cash, $15.6 MM of accounts receivable and $27.7 MM of inventory, with short-term bank loans of $20.9 MM. 

Cheapest Chinese Auto Play: We are not surprised with the strength in CXDC’s performance given our recent visit to the company and its customers in Harbin and Chongchun. We view this as one of the most under-appreciated stories in relation to the auto opportunity in China. The company trades not only at a significant discount to comparables in HK / Shanghai exchanges but also at almost 50% discount to US listed Chinese auto component names while putting up a consistently strong performance. We strongly recommend accumulation of one of the largest advanced plastics plays in China at these levels. 

China’s Auto Sector Remains Robust: China’s auto market has been growing rapidly so far this year. According to CAAM’ statistics, during the first 9 months of 2010, total production and sales volume for Passenger Vehicles reached 9.88 MM and 9.90 MM units, growing by 38.07% and 36.68% Y-o-Y. This compares to production and sales of 3.20 MM and 3.24 MM units for Commercial Vehicles, which grew by 30.35% and 33.85% from the same period in 2009. We believe the overall auto market should continue growing at a healthy to moderate pace in the near-term future. In October, 2010, based on the most recent update by CAAM, Passenger Vehicle market recorded 1.198 MM units and 1.203 MM units in production and sales volume, a Y-o-Y increase of 23.48% and 27.12%; while Commercial Vehicle market experienced 19.18% and 19.87% Y-o-Y growth, with production and sales of 342.9K and 335.5K units. 

Guidance Raised: CXDC raised its 2010 guidance for full year revenue and Non-GAAP net income from $185 MM - $210 MM and $30 MM - $33 MM to $210 MM~$230 MM and $35 MM~$37 MM. We will be bringing our financial model in line with this guidance. We expect more color from the earnings call on November 12, 2010, and we will provide a detailed earnings update after the earnings call.

Notice Regarding Privacy and Confidentiality:

This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member FINRA.
Member SIPC.

Rodman & Renshaw on China Xd Plastics

“China’s Detroit” Is Busy: We were in Changchun, “China’s Detroit”, on Oct. 13 to meet with CXDC’s customers. The factory floors we visited are working non-stop in 3 shift days to keep their respective value chains moving. Anecdotal evidence suggests this is true almost across the board in the automotive value chain in North-East China. In line with this, we are not surprised that CXDC had to come to the equity markets recently for growth capital. 

Customer Visits Reveal XD’s Geographic Advantage: In Changchun we met two CXDC customers, FAW-Valeo Climate Control Systems and Changchun Huateng Auto Parts Co. The key takeaways from these meetings / visits were 1) CXDC is the dominating advanced plastics supplier in this geography with few alternative options 2) the company’s certifications that comply with various automaker standards are an important business driver and competitive differentiator 3) purchasing managers remain bullish about prospects for plastic consumption in autos and general growth in the auto industry in China. 

Factory Retrofit Already Underway: Work on retrofitting the Qinling Road factory in Harbin is in full swing. We believe nine new production lines and R&D infrastructure will become operational on completion. At the rate that work is being carried out, this facility could be completed by early December 2010 and should be able to contribute towards revenues for entire 2011. 

Deserves A Better Multiple: We believe CXDC deserves a substantially better multiple than it is currently being given by the market. CXDC’s closest comparable Kingfa Science & Technology (600143-SHG, Not Rated), a Shanghai listed plastics company is trading at a P/E of 40x to its 2010 earnings for playing in the same opportunity and earning lower margins (GM of 16% in FY09 and 13.7% in FY08). Investors should note that with the additional 35,000 tons in capacity, CXDC is probably the largest advanced plastics player in China.

Valuation: At current levels CXDC is trading at P/E multiples of ~7.4x and ~6.0x to our FY10 and FY11 Non-GAAP earnings estimates. These multiples are below industry averages for both the modified plastics industry and the auto parts industry. We believe CXDC should be trading in line with the modified plastics industry given the growth opportunity associated with it. We are comfortable maintaining our $10 price target on CXDC, which translates into P/E multiple of ~13.6x and ~10.9x to our estimates for FY10 and FY11, compared to ~40x and ~34x for Kingfa Science & Technology (600143.SH, Not Rated) for the same period. We believe this is reasonable multiple for a company that has substantial growth opportunities ahead.


This material has been prepared for informational purposes only. While it is based on information generally available to the public from sources we believe to be reliable, no representation is made that the subject information is accurate or complete. Past performance is not a guarantee nor does it necessarily serve as an indicator of future results. Price and availability are subject to change without notice. Additional information is available upon request.

Since Rodman & Renshaw, LLC is not a tax advisor, transactions requiring tax consideration should be reviewed carefully with your tax advisor. Similarly, Rodman & Renshaw, LLC is not a law firm and provides no legal opinions or legal advice.

Rodman & Renshaw, LLC may make a market in the securities being discussed.

Rodman & Renshaw, LLC and/or its officers or employees may have positions in any of the securities of this (these) issuer(s).

Member FINRA.
Member SIPC.

China XD Plastics Company Limited  today announced that it has entered into agreements with several institutional investors for a registered direct placement of approximately $20 million of common stock at a price of $6.00 per share. The Company will issue a total of 3,333,334 shares to the institutional investors.

In addition, the Company will issue to the investors warrants to purchase shares of common stock, which, if fully exercised, would provide an additional $10 million in gross proceeds to the Company. The warrants have an exercise price of $6.00 per share and are exercisable for a six month and one week period commencing six months and one day following the closing date.

China XD Plastics Company Limited, today announced that it has updated its revenue and non-GAAP adjusted net income guidance for the fiscal year ended December 31, 2010 from what was previously announced in April 2010. The Company now expects its 2010 revenue to be in the range of $185 million and $215 million and it expects its 2010 non-GAAP adjusted net income to be in the range of $30 million and $33 million, excluding any non-cash charges related to the change in fair value of the existing derivative liabilities and stock-based compensation.

Mr. Jie Han, Chairman and CEO of China XD Plastics, commented: "We believe that our updated guidance for fiscal year 2010 reflects successful execution of our strategy to drive profitable growth, as we continue to benefit from favorable automotive industry trends and positive macroeconomic conditions in China."

The Company had previously expected its 2010 revenue to be in the range of $170 million and $200 million and it had expected its 2010 non-GAAP adjusted net income to be in the range of $27 million and $30 million.

PR Newswire

Guidance Report:

The Company plans to increase its annual production capacity to 70,000 tons during 2009, up from 40,000 tons in 2008 and 25,000 tons in 2007. The automotive industry environment in China remains healthy, despite the overall economic slowdown worldwide. During the first quarter of 2009, total number of automobiles sold in China reached 2.7 million according to the statistics data provided by the China Association of Automobile Manufacturers. The Company expects to see continued growth of the auto industry in China, which is expected to contribute to a further increase in the demand for the Company's products.

Full Year Fiscal 2009 Guidance Ending December

The company did not provide EPS guidance.  The GeoTeam® used the 2009 year ending outstanding share count of 38,634,657 to calculate implied EPS.

This guidance is based on non-GAAP results and excludes non-cash charges resulting from stock compensation expense.