HARBIN, China, Aug. 31 /PRNewswire-Asia/ -- China XD Plastics Company Ltd. ("China XD Plastics" or the "Company"), (OTC Bulletin Board: CXDC), the largest Chinese manufacturer in the development, manufacture, and distribution of modified plastics primarily for use in automotive applications in China, today announced that the Company's wholly owned subsidiary, Harbin Xinda Macromolecule Material Company Limited ("Xinda"), entered into a long-term non-exclusive agreement with Changchun Wanbofeng Plastics Company Limited ("Wanbofeng") to distribute carbon fiber reinforced nylon composite ("CFRNC"), a product newly developed by the Company.
The Company has successfully developed CFRNC, an advanced new product over the traditional modified nylon. Compared to traditional modified nylon, its CFRNC exhibits higher performance while replacing imported products with over 30% savings to its customers. CFRNC is mainly used in auto parts and components of mid-class and luxury vehicles. The Company expects its CFRNC to displace similar imported materials with competitive pricing over imports and offer a higher level of service and product customization to its customers. The new product has been certified by the FAW Group Corporation, the largest automobile manufacturer and pioneer of the automobile industry in China, allowing its parts suppliers to use the Company's CFRNC in their production. In addition, the carbon fiber-reinforced nylon can be used in non-automobile applications, including oil fields and mining machinery, aviation and among other industries.
"High-end and high margin modified nylon products have been one of our key R&D initiatives for many years. The successful development of carbon fiber-reinforced nylon showcases China XD Plastics' ability in product innovation. We are also delighted to see our new product development beginning to bear fruit and being recognized by a specialty nylon product distributor in Northeast China, Changchun Wanbofeng Plastics Company Limited, only three months after we added a new distributor in North China," said Mr. Jie Han, the Chairman and CEO of China XD Plastics. "Through Wanbofeng's sales network, we will be able to accelerate sales volume of high margin nylon products in Northeast China, thus enhancing our overall gross margin."
About China XD Plastics Company Ltd.
China XD Plastics Company Ltd., 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 30 automobile brands manufactured in China including Audi, Red Flag, Volkswagen and Mazda. The Company's wholly-owned research institute dedicates to the researching and development of modified plastics and benefits from the cooperation with well-known scientist in Chinese famous college. Currently, 129 products that Xinda manufactured 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 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 Company's ability to successfully expand its production capacity; 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; 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. Taylor Zhang, CFO
Phone: +1-212-747-1118 (New York)
Mr. Allan Lao, IR Director
Phone: +86-451-8434-6600 (China)
Email: cxdc@chinaxd.net
CCG Investor Relations Inc.
Mr. Crocker Coulson, President
Phone: +1-646-213-1915 (New York)
Mr. Ed Job, CFA
Phone: +1-646-213-1914 (New York)
Email: ed.job@ccgir.com
Web: http://www.ccgirasia.com
