China XD Plastics Announces First Quarter 2015 Financial Results

Inventories increased by 19.7% to meet anticipated demand in the coming quarters, especially from customers located in more distant regions as well as to stock up on raw materials at low price level. 

Short-term loans, including the current portion of long-term loans, increased by $61.3 million, or 61.5%, during the first quarter, primarily due to loans guaranteed by Investment Company affiliated with the local Government and overseas bank loans borrowed by the Company's Dubai subsidiary. The Company took on additional long-term bank loans of $31.2 million to support its expansion in Southwest China and Dubai.  Accounts payable increased by 43.8% as a result of more purchases made by the Company because of the lower purchase price of raw materials and the Company's strategy to stock up on inventory.  As of March 31, 2015, notes payable was $148.7 million, due to the issuance of 11.75% guaranteed senior notes due in 2019.

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 billion and 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.

Conference Call

China XD Plastics' management will host a conference call at 8:00 a.m. ET on Monday, May 11, 2015, to discuss its first quarter of 2015 financial results. The conference call can be accessed by dialing +1 (855) 298-3404 (for callers in the U.S.), +86-4001-200-539 (for Mainland China callers) or +852 5808 3202 (for Hong Kong callers) and entering pass code 6865785.

A recording of the conference call will be available through May 18, 2015, by calling +1 (866) 846-0868 (for callers in the U.S.) and entering pass code 6865785.

A live webcast and replay of the conference call will be available on the investor relations page of the Company's website at http://www.chinaxd.net.

About China XD Plastics Company Limited

China XD Plastics Company Limited, one of China's leading specialty chemical companies, through its wholly-owned subsidiaries, develops, manufactures and sells polymer composites materials, primarily for automotive applications. The Company's products are used in the exterior and interior trim and in the functional components of 27 automobile brands manufactured in China, including without limitation, AUDI, BMW, Volkswagen, Buick, Mazda, and Toyota. The Company's wholly-owned research center is dedicated to the research and development of polymer composites materials and benefits from its cooperation with well-known scientists from prestigious universities in China. As of March 31, 2015, 329 of the Company's products have been certified for use by one or more of the automobile manufacturers in China. For more information please visit http://www.chinaxd.net.

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's growth potential in international markets; the effectiveness and profitability of the Company's product diversification strategy; the impact of the Company's product mix shift to more advanced products and related pricing policies; the volatility of the Company's operating results and financial condition; the Company's ability to raise additional capital to finance the Company's activities; the Company's and its subsidiaries' ability to fully perform all of their obligations under the guaranteed senior notes transaction and other contractual obligations applicable to them; the effectiveness, profitability, and the marketability of its the ongoing mix shift to more advanced products; the prospect of the Company's Dubai facility, and the associated expansion into Middle East, Europe and other parts of Asia; the prospect of the Company's Southwest China facility, and its penetration into Southwest China; the impact of volatile crude oil prices on the Company's efforts to diversify its product offers; market for plastic resins; legal and regulatory risks; the Company's projections of its revenues for performance in fiscal in 2015; the Company's ability to execute its growth strategy and the effectiveness of its marketing strategy; the future trading of the common stock of the Company; the Company's ability to operate as a public company; the period of time for which its current liquidity will enable the Company to fund its operations; general economic and business conditions; the volatility of the Company's operating results and financial condition; the Company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company's filings with the Securities and Exchange Commission and available on its website at http://www.sec.gov. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.

Contacts:

China XD Plastics
Mr. Taylor Zhang
CFO (New York)
US Phone: +1 (212) 747-1118 
Email: Email Contact

ICR
William Zima
Partner
US Phone: +1-(203) 682-8233
Email:  Email Contact

-Financial Tables Follow-


CHINA XD PLASTICS COMPANY LIMITED AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS



March 31,

2015



December 31,

2014




US$



US$


ASSETS







Current assets:







Cash and cash equivalents



31,198,246




45,456,612


Restricted cash



28,829,206




12,545,772


Time deposits



269,216,517




238,532,702


Accounts receivable, net



199,160,030




203,998,138


Amounts due from a related party



27,705




220,262


Inventories



298,917,784




249,797,244


Prepaid expenses and other current assets



15,662,270




11,253,828


    Total current assets



843,011,758




761,804,558


Property, plant and equipment, net



316,039,885




318,324,600


Land use rights, net



18,824,797




11,896,542


Prepayments to equipment and construction suppliers



266,678,237




182,259,578


Other non-current assets



41,340,286




25,499,744


    Total assets



1,485,894,963




1,299,785,022




















LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY


Current liabilities:









Short-term bank loans, including current portion of long-term

bank loans



161,005,484




99,735,422


Bills payable



27,208,472




43,389,928


Accounts payable



218,740,159




152,073,014


Income taxes payable



4,499,918




3,269,115


Accrued expenses and other current liabilities



22,281,199




24,484,583


   Total current liabilities



433,735,232




322,952,062


Long-term bank loans, excluding current portion



205,538,523




174,274,446


Notes payable



148,682,290




148,617,057


Income taxes payable



15,251,469




14,025,825


Deferred income tax liabilities



16,506,164




16,951,551


Deferred income



17,722,212




-


    Total liabilities



837,435,890




676,820,941











Redeemable Series D convertible preferred stock



97,576,465




97,576,465


Stockholders' equity:









Series B preferred stock



100




100


Common stock, US$0.0001 par value, 500,000,000 shares

authorized, 49,182,284 shares and 49,172,796 shares issued,

49,161,284 shares and 49,151,796 shares outstanding as

of March 31, 2015 and December 31, 2014, respectively



4,917




4,916


Treasury stock, 21,000 shares at cost



(92,694)




(92,694)


Additional paid-in capital



81,131,512




80,875,787


Retained earnings



457,227,732




431,823,706


Accumulated other comprehensive income



12,611,041




12,775,801


    Total stockholders' equity



550,882,608




525,387,616


Commitments and contingencies



-




-


    Total liabilities, redeemable convertible preferred stock

and stockholders' equity



1,485,894,963




1,299,785,022



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