HARBIN, China, Oct. 5 /PRNewswire-Asia-FirstCall/ -- China XD Plastics Company Limited ("China XD Plastics" or the "Company"), (NasdaqGM: CXDC), a leading Chinese developer, manufacturer, and distributor of modified plastics primarily for use in automotive applications in China, announced today that it has engaged Deloitte Touche Tohmatsu (refer to as "Deloitte") to assist it in complying with the requirements of Section 404 of the Sarbanes-Oxley Act ("SOX 404") by examining the design of the Company's internal control over financial reporting. In addition, Deloitte will assist the Company in preparing its internal accounting manual.
In order to enhance the integrity of China XD Plastic's financial reporting, in 2009, China XD determined the scope of internal financial reporting and control including entity scope and important business procedures in accordance with SOX 404, SEC and PCAOB requirements. The engagement of Deloitte is aimed at evaluating the design of the internal controls over financial reporting, and assisting the Company in SOX404 compliance and preparing its internal accounting manual.
Mr. Jie Han, Chairman and CEO of China XD Plastics, commented, "We are pleased to engage Deloitte to assist the Company in full compliance with the requirements of the Sarbanes-Oxley Act. As such, we believe partnering with Deloitte will help us fulfill our commitments and increase investor confidence in our financial reporting standards and transparency."
About China XD Plastics Company Ltd.
China XD Plastics Company Limited, through its wholly owned subsidiary, Harbin Xinda Macromolecule Material ("Xinda"), develops, manufactures, and distributes modified plastics, primarily for automotive applications. The Company's specialized plastics are used in the exterior and interior trim and in the functional components of more than 60 automobile brands manufactured in China including Audi, Red Flag, Volkswagen and Mazda. The Company's wholly-owned research institute is dedicated to the research and development of modified plastics, and benefits from the cooperation with well-known scientists from prestigious universities in China. At present, 159 of Xinda'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 ability to increase the number of certifications; the Company's ability to introduce new product applications for automobiles; the effectiveness, profitability, and the marketability of its products; the Company's ability to successfully expand its production capacity; the Company's ability to protect its proprietary information; general economic and business conditions; the volatility of the Company's operating results and financial conditions; 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 ("SEC"), which are available on the SEC's 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 its industry. The Company undertakes no obligation to update these 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 Company Limited | Taylor Rafferty (US): |
| Mr. Taylor Zhang, CFO | Mahmoud Siddig, Director |
| Phone: +1-212-747-1118 (New York) | +1-212-889-4350 |
| Mr. Allan Lao, IR Manager | ChinaXD@taylor-rafferty.com |
| Phone: +86-451-84346600 (Harbin) |
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| Email: cxdc@chinaxd.net |
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