HARBIN, China, Feb. 10 /PRNewswire-Asia/ -- China XD Plastics Company Ltd. (“China XD Plastics” or the “Company”),
(OTC Bulletin Board: CXDC), the largest Chinese manufacturer of modified plastics for automotive applications, is engaged in the development, manufacturing, and distribution of modified plastics primarily for use in the automotive applications, today announced preliminary results for the fiscal year ended December 31, 2008.
China XD Plastics expects to report record revenues for fiscal year 2008 in the range of $75 million to $80 million, representing an increase between 120% and 134% from $34.2 million in revenue during the fiscal year of 2007. The Company’s strong revenue growth is attributable to the increase in deliveries to existing customers as well as the expansion of the Company’s customer base through an aggressive marketing program as well as the successful development of new products. During the fiscal year of 2008, the Company shipped over 41,000 tons of modified plastics exceeding its planned production capacity of 40,000 tons. Over 90% of the Company’s modified plastics sales were for automotive applications. Gross margin is expected to be between 22% - 26% in fiscal year 2008, compared to 18.6% in fiscal year 2007. The increase in gross margin for the year was primarily the result of an increase in the production of higher value-added products. Net Income is expected to be in the range of $13 million to $15 million, an approximate increase in between 145% - 185% from $5.3 million in net income during the fiscal year of 2007. The foregoing results are preliminary and subject to revision based upon review by the Company’s independent auditor.
“We are very pleased with our outstanding results for the fiscal 2008, which is the result of strong demand for our products demonstrating that China XD Plastics, through its operating subsidiary, has emerged as the leading domestic supplier of modified plastics to the rapidly growing automotive industry in China,” said commented Mr. Jie Han, Chairman and Chief Executive Officer of China XD Plastics. “As we enter 2009 we remain well positioned for another year of strong growth, despite the slowdown of the global economy. We expect our growth in the months ahead to be driven by our diversified product lines, the largest number of certifications from auto OEMs of any other industry participant in China, the expansion of our high margin product lines, and the improvement in efficiency of our sales force.”
About China XD Plastics Company Ltd.
China XD Plastics Company Ltd., through its wholly owned subsidiary Harbin Xinda Macromolecule Material, 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 30 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 technology collaboration with well-known scientists from leading Universities in China. At present, Xinda manufactures approximately 145 types of automobile-specific modified plastic products, 117 of which have been certified for use by one or more of the automobile manufacturers in China.
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 raise additional capital to finance the company’s activities; the effectiveness, profitability, and the marketability of its products; legal and regulatory risks associated with the share exchange; the future trading of the common stock of the company; the ability of the company to operate as a public company; the period of time for which its current liquidity will enable the company to fund its operations; the company’s ability to protect its proprietary information; 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 companies 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, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
For more information, please contact:
China XD Plastics Company Ltd.
Mr. Kirby Zhao, US Representative
Tel: +1-212-747-1118 (New York)
Mr. Allan Lao, IR Director
Tel: +86-451-8434-6600 (China)
Email: xdtfx@hotmail.com
CCG Investor Relations Inc.
Mr. Crocker Coulson, President
Tel: +1-646-213-1915 (New York)
Mr. Ed Job, CFA
Tel: +1-646-213-1914 (New York)
Email: ed.job@ccgir.com
Web: http://www.ccgirasia.com
