HARBIN, China, March 16, 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 announced its financial results for
the fourth quarter and fiscal year ended December 31, 2014.
Full Year 2014 Financial Highlights
- Revenue was $1,110.6 million, an
increase of 5.7% from $1,050.8
million in 2013
- Gross profit was $222.4 million,
a decrease of 0.4% from $223.4
million in 2013
- Gross profit margin was 20.0%, compared to 21.3% in 2013
- Net income was $120.7 million,
compared to $133.8 million in
2013
- Total volume shipped was 341,520 metric tons, up from 339,602
metric tons in 2013
Fourth Quarter 2014 Financial Highlights
- Revenue was $307.1 million, a decrease of 20.2% YoY and
2.7% sequentially
- Gross profit was $58.1 million, a decrease of 36.4% YoY
and 11.2% sequentially
- Gross margin of 18.9% declined 490 basis points YoY and 180
basis points sequentially
- Net income was $35.8 million, a decrease of 37.7% YoY and
17.1% sequentially
- Total volume shipped was 96,086 metric tons, down 17.9% YoY but
up 0.9% sequentially
"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."
Fourth Quarter 2014 Results
Revenues for the fourth quarter of 2014 were $307.1 million, representing a year-over-year
decrease of 20.2% from $384.6 million
in the fourth quarter of 2013. Sales by volume decreased by
17.9% and average RMB selling price decreased by 2.1%
year-over-year in the fourth quarter.
Gross profit for the fourth quarter of 2014 was $58.1 million, representing a 36.4% decrease from
$91.4 million in the prior year
period. Gross margin was 18.9%, compared to 23.8% in the
fourth quarter of 2013. Gross margin decreased due to new
lower-cost formulations of PA products developed in response to
pricing pressure throughout the auto supply chain as a result of
slower-than-estimated growth rate in the Chinese automotive
industry, and the impact of spread compression resulting from
falling market prices of certain products due to the significant
decline in crude oil prices while the associated input materials
had been procured at a higher unit cost before the decline in oil
price. These factors were partially offset by high margin products
sold in overseas markets and a reduction in average sales discounts
applied to lower-end products sold in China (modified PP and ABS).
Premium products (mainly PA6, PA66, POM, PPO and plastic alloy)
accounted for 75.8% of total revenues in the fourth quarter of
2014, compared to 72.4% in the prior year period. Sales to
the Korean market accounted for 19.8% of total revenues.
Sales to the Korean market primarily consisted of high-end modified
PA66 and plastic alloys.
General and administrative (G&A) expenses were $6.8 million in the quarter, compared to
$5.5 million in the same period of
2013, representing an increase of 23.6%, or $1.3 million. The growth was primarily due
to increases of $2.0 million in
payroll expense, $0.3 million in
non-income tax expense, $0.2 million
in professional fees and $0.2 million
depreciation expense, partially offset by a decrease of
$1.8 million in share-based
compensation expense.
R&D expenses were $2.4
million during the quarter, compared to $5.3 in the same period of 2013. During the
quarter, the Company recalibrated its R&D programs in response
to shifting market conditions. The Company scaled down R&D by
ending several projects early, while expanding our R&D efforts
to applications in more diversified industries. As of
December 31, 2014, the number of
ongoing research and development projects was 96.
Operating income for the fourth quarter of 2014 was $48.6 million, or 15.8% of revenue, a decrease of
39.7% from $80.6 million, or 21.0% of
revenue, in the prior year period. The decrease was due to the
lower gross profit combined with higher selling and G&A
expenses.
Net interest expense was $8.0
million for the quarter, compared to net interest expense of
$1.9 million in the same period of
2013, primarily due to an increase of $4.7
million in interest payments resulting from the February 2014 guaranteed senior notes issuance,
and $5.7 million in interest payments
resulting from the bank loans used to fund capacity expansions in
Southwest China and Dubai. Interest expense was partially offset
by $2.4 million of interest income
from time deposits.
Income tax expense was $1.7
million, representing an effective income tax rate of 4.5%,
compared to an effective income tax rate of 9.5% in the third
quarter of 2014. The decrease in effective income tax rate
was mainly due to the preferential income tax rate of the Company's
Sichuan subsidiary and exemption
of income taxes in the Dubai
subsidiary and greater portion of income before taxes from these
subsidiaries in the fourth quarter, compared to that in the third
quarter.
Net income for the fourth quarter of 2014 was $35.8 million, compared to $57.5 million for the same period of the prior
year. Basic and diluted earnings per share were $0.54, compared to $0.89 per basic and diluted share in the fourth
quarter of 2013.
Average number of shares used in the computation of basic and
diluted earnings per share for the three months ended December 31, 2014 was 49.1 million, compared to
47.9 million in the prior year period.
EBITDA for the fourth quarter of 2014 was $53.8 million, a decrease of 39.4% from EBITDA of
$88.8 million in the prior year
period. For a detailed reconciliation of EBITDA, a non-GAAP
measure, to its nearest GAAP equivalent, please see the financial
tables at the end of this release.
Full Year 2014 Financial Results
For the fiscal year 2014, revenues were $1,110.6 million, representing an increase of
5.7% over revenues of $1,050.8
million in 2013. Revenue growth was driven by a 0.6%
increase in sales volume and 5.3% increase in average RMB selling
price. The increase in sales volume was primarily due to new
business from the Korean market. The increase in ASP was
driven by a shift in product mix to premium products.
Gross profit for the fiscal year 2014 was $222.4 million, down 0.4% from $223.4 million in 2013. Gross margin was
20.0% compared to 21.3% in 2013. Gross margin decreased
primarily due to new lower-cost formulations of the Company's PA
products developed in response to customer demand and the changing
market conditions, and the impact of spread compression resulting
from falling market prices of certain products due to the
significant decline in crude oil prices while the associated input
materials had been procured at a higher unit cost before the
decline in oil price. These factors were partially offset by a
shift in product mix to higher-margin products sold in overseas
markets.
Premium products accounted for 75.1% of total revenues in 2014,
compared to 69.1% in the prior year. Sales to
the overseas market accounted for 12.6% of total revenues in
2014. The average discount applied to list prices of
lower-end PP and ABS products was 1.0%, compared to 5.8% in
2013.
General and administrative (G&A) expenses were $20.6 million in 2014, an increase of 26.4%, or
$4.3 million, from $16.3 million in 2013. This increase is
primarily due to increases of $3.1
million in payroll expense, $0.4
million in rental fees due to the business expansion,
$0.4 million in professional fees and
$0.2 million in fixed asset
depreciation.
R&D expenses were $29.4
million in 2014, an increase of 38.0%, or $8.2 million, from $21.3 million in 2013,
reflecting increased R&D activities on new products.
The increase is primarily due to consumption of raw materials in
various experiments for automotive and non-automotive
applications. The majority of projects relate to modified
plastics for automotive applications, while the balance apply to
advanced fields such as marine, aircraft, high-speed rail, 3D
printing, bio-plastics and medical devices. In 2014, the
Company successfully launched 38 new automobile
manufacturer-certified products (AMCP), which increased its total
number of AMCP to 321.
Operating income was $171.7
million in 2014, a decrease of 7.5%, or $13.9 million, from $185.6
million in 2013. The decrease was due to lower gross profit,
compounded by higher G&A and R&D expenses.
Net interest expense was $30.5
million in 2014, compared to net interest expense of
$8.5 million in 2013. The increase is
primarily due to an increase of $16.9
million in interest expense resulting from the notes issued
on February 4, 2014, an increase
of $9.3 million in interest expense
resulting from the increase of bank loans to finance the Company's
capacity expansion in Southwest
China and Dubai. The
average balance of short-term and long-term bank loans in
2014 was $373.7 million,
compared to $238.4 million during the
prior year. The average deposit balance in 2014 was $399.2 million, compared to $226.4 million during the prior year, resulting
in an increase of $4.2 million in
interest income, which partially offset the increase in interest
expense.
Income tax expense was $18.3
million, representing an effective income tax rate of 13.1%,
compared to an effective income tax rate of 25.9% in 2013. The
decrease in effective income tax rate was mainly due to the
preferential income tax rate of the Company's Sichuan subsidiary and exemption of income
taxes for the Dubai
subsidiary.
Net income for fiscal year 2014 was $120.7 million, compared to a net income of
$133.8 million in the prior fiscal
year.
Basic and diluted earnings per share were $1.85, compared to basic and diluted earnings per
share of $2.08 in fiscal
2013.
Average number of shares used in the computation of basic and
diluted earnings per share for fiscal year 2014 was 48.8 million,
compared to 47.8 million in the prior fiscal year.
EBITDA for the fiscal year 2014 was $203.5 million, a decrease of 6.3% from EBITDA of
$217.2 million in the prior fiscal
year. For a detailed reconciliation of EBITDA, a non-GAAP
measure, to its nearest GAAP equivalent, please see the financial
tables at the end of this release.
Financial Condition
As of December 31, 2014, the
Company had $45.5 million in cash and
cash equivalents, $238.5 million in
time deposits with commercial banks, $438.8
million in working capital (current assets minus current
liabilities) and a current ratio (current assets divided by current
liabilities) of 2.4. Stockholders' equity as of December 31, 2014 was $525.3 million, compared to $412.3 million as of December 31, 2013.
Cash and cash equivalents, restricted cash and time deposits
decreased by 24.1% during the year as the Company paid down bank
loans and increased investing activities, including investments in
plant and equipment. Inventories increased by 72.4% to meet
anticipated demand, especially those geographically located in more
distant cities in the coming quarters. Prepayment to
equipment suppliers increased significantly due to advances for
equipment to be used in the Company's new facilities in
Southwest China and Dubai.
Leveraging its cash flow generated from operation, the Company
reduced its short-term bank loans by 68.3% to improve its financial
stability. The Company took on long-term bank loans of
$174.3 million to support its
expansion in Southwest China and
Dubai under a more stable capital
structure. Accounts payable increased by 24.2% as a result of
increase in inventories. Bills payable increased by 69.5% due
to purchases of raw material to support inventory growth. As
of December 31, 2014, non-current
notes payable was $148.6 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 projects revenue for fiscal 2015 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, March 16, 2015, to discuss its fourth
quarter and fiscal 2014 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 3575168.
A recording of the conference call will be available through
March 23, 2015, by calling +1 (866)
846-0868 (for callers in the U.S.) and entering pass code
3575168.
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, 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
December 31, 2014, 321 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 performance in fiscal 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: cxdc-ir@chinaxd.net
ICR
Mr. Gary Dvorchak, CFA
Gary Dvorchak,CFA
Senior Vice President
US Phone: +1 (310) 954-1123
China Phone: +86 (138) 1079-1408
Email: Gary.Dvorchak@icrinc.com
-Financial Tables Follow-
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
December
31,
|
|
|
|
2014
|
|
|
2013
|
|
|
|
US$
|
|
|
US$
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
45,456,612
|
|
|
|
95,545,904
|
|
Restricted
cash
|
|
|
12,545,772
|
|
|
|
13,708,971
|
|
Time
deposits
|
|
|
238,532,702
|
|
|
|
281,343,641
|
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
|
203,998,138
|
|
|
|
282,320,819
|
|
Amounts due from
a related party
|
|
|
220,262
|
|
|
|
225,752
|
|
Inventories
|
|
|
249,797,244
|
|
|
|
144,885,688
|
|
Prepaid expenses and
other current assets
|
|
|
11,253,828
|
|
|
|
8,418,143
|
|
Total current
assets
|
|
|
761,804,558
|
|
|
|
826,448,918
|
|
Property, plant and
equipment, net
|
|
|
318,324,600
|
|
|
|
233,841,735
|
|
Land use rights,
net
|
|
|
11,896,542
|
|
|
|
12,457,001
|
|
Prepayments to
equipment suppliers
|
|
|
182,259,578
|
|
|
|
1,332,742
|
|
Other non-current
assets
|
|
|
25,499,744
|
|
|
|
1,826,232
|
|
Total
assets
|
|
|
1,299,785,022
|
|
|
|
1,075,906,628
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES,
REDEEMABLE CONVERTIBLE PREFERRED STOCKS AND STOCKHOLDERS'
EQUITY
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Short-term bank
loans, including current portion of long-term
bank loans
|
|
|
99,735,422
|
|
|
|
314,682,620
|
|
Bills
payable
|
|
|
43,389,928
|
|
|
|
25,604,176
|
|
Accounts
payable
|
|
|
152,073,014
|
|
|
|
122,457,396
|
|
Income taxes
payable
|
|
|
3,269,115
|
|
|
|
18,631,698
|
|
Warrants
liability
|
|
|
-
|
|
|
|
1,063,401
|
|
Accrued expenses and
other current liabilities
|
|
|
24,484,583
|
|
|
|
55,893,004
|
|
Total current
liabilities
|
|
|
322,952,062
|
|
|
|
538,332,295
|
|
Long-term bank loans,
excluding current portion
|
|
|
174,274,446
|
|
|
|
-
|
|
Notes
payable
|
|
|
148,617,057
|
|
|
|
-
|
|
Income taxes
payable
|
|
|
14,025,825
|
|
|
|
8,224,057
|
|
Deferred income tax
liabilities
|
|
|
16,951,551
|
|
|
|
19,428,706
|
|
Total
liabilities
|
|
|
676,820,941
|
|
|
|
565,985,058
|
|
|
|
|
|
|
|
|
|
|
Redeemable Series
D convertible preferred stock
|
|
|
97,576,465
|
|
|
|
97,576,465
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Series B preferred
stock
|
|
|
100
|
|
|
|
100
|
|
Common stock,
US$0.0001 par value, 500,000,000 shares authorized, 49,172,796
shares and 47,896,133 shares issued, 49,151,796, shares and
47,875,133 shares outstanding as of December 31, 2014 and
2013, respectively
|
|
|
4,916
|
|
|
|
4,789
|
|
Treasury stock,
21,000 shares at cost
|
|
|
(92,694)
|
|
|
|
(92,694)
|
|
Additional paid-in
capital
|
|
|
80,875,787
|
|
|
|
76,341,659
|
|
Retained
earnings
|
|
|
431,823,706
|
|
|
|
311,047,337
|
|
Accumulated other
comprehensive income
|
|
|
12,775,801
|
|
|
|
25,043,914
|
|
Total stockholders'
equity
|
|
|
525,387,616
|
|
|
|
412,345,105
|
|
Commitments and
contingencies
|
|
|
-
|
|
|
|
-
|
|
Total liabilities,
redeemable convertible preferred stocks and stockholders'
equity
|
|
|
1,299,785,022
|
|
|
|
1,075,906,628
|
|
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
Years
Ended December
31,
|
|
|
Three
Months
Ended December 31,
|
|
|
|
2014
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
1,110,685,692
|
|
|
|
1,050,816,364
|
|
|
|
307,149,813
|
|
|
|
384,559,386
|
|
Cost of
revenues
|
|
|
(888,227,868)
|
|
|
|
(827,419,861)
|
|
|
|
(249,007,874)
|
|
|
|
(293,169,173)
|
|
Gross
profit
|
|
|
222,457,824
|
|
|
|
223,396,503
|
|
|
|
58,141,939
|
|
|
|
91,390,213
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
(728,232)
|
|
|
|
(243,975)
|
|
|
|
(292,992)
|
|
|
|
9,590
|
|
General and
administrative expenses
|
|
|
(20,564,820)
|
|
|
|
(16,284,528)
|
|
|
|
(6,802,224)
|
|
|
|
(5,508,933)
|
|
Research and
development expenses
|
|
|
(29,434,680)
|
|
|
|
(21,258,549)
|
|
|
|
(2,366,232)
|
|
|
|
(5,332,251)
|
|
Total operating
expenses
|
|
|
(50,727,732)
|
|
|
|
(37,787,052)
|
|
|
|
(9,461,448)
|
|
|
|
(10,831,594)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
171,730,092
|
|
|
|
185,609,451
|
|
|
|
48,680,491
|
|
|
|
80,558,619
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
10,984,980
|
|
|
|
6,788,243
|
|
|
|
2,436,123
|
|
|
|
2,546,038
|
|
Interest
expense
|
|
|
(41,518,878)
|
|
|
|
(15,250,780)
|
|
|
|
(10,459,305)
|
|
|
|
(4,440,559)
|
|
Foreign currency
exchange gains (losses)
|
|
|
(1,938,807)
|
|
|
|
2,519,486
|
|
|
|
(1,745,661)
|
|
|
|
602,860
|
|
Losses on foreign
currency forward contracts
|
|
|
(1,067,162)
|
|
|
|
-
|
|
|
|
(442,396)
|
|
|
|
-
|
|
Change in fair value
of warrants liability
|
|
|
(1,871,074)
|
|
|
|
(54,651)
|
|
|
|
(2,397,265)
|
|
|
|
(362,753)
|
|
Government
|
|
|
2,723,495
|
|
|
|
924,216
|
|
|
|
1,399,282
|
|
|
|
4,470
|
|
Total non-operating
expenses, net
|
|
|
(32,687,446)
|
|
|
|
(5,073,486)
|
|
|
|
(11,209,222)
|
|
|
|
(1,649,944)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
139,042,646
|
|
|
|
180,535,965
|
|
|
|
37,471,269
|
|
|
|
78,908,675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
(18,266,277)
|
|
|
|
(46,697,120)
|
|
|
|
(1,685,597)
|
|
|
|
(21,388,864)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
120,776,369
|
|
|
|
133,838,845
|
|
|
|
35,785,672
|
|
|
|
57,519,811
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
1.85
|
|
|
|
2.08
|
|
|
|
0.54
|
|
|
|
0.89
|
|
Net
Income
|
|
|
120,776,369
|
|
|
|
133,838,845
|
|
|
|
35,785,672
|
|
|
|
57,519,811
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income (losses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment, net of nil
income taxes
|
|
|
(12,268,113)
|
|
|
|
10,385,656
|
|
|
|
(6,406,925)
|
|
|
|
4,977,645
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
|
108,508,256
|
|
|
|
144,224,501
|
|
|
|
29,378,747
|
|
|
|
62,497,456
|
|
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
|
US$
|
|
|
US$
|
|
Cash flows
from operating activities:
|
|
|
|
|
|
|
Net income
|
|
|
120,776,369
|
|
|
|
133,838,845
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Net reversal for
doubtful accounts
|
|
|
(35,849)
|
|
|
|
(2,293)
|
|
Depreciation and
amortization
|
|
|
22,916,893
|
|
|
|
21,420,723
|
|
Stock-based
compensation
|
|
|
1,003,040
|
|
|
|
3,757,780
|
|
Change in fair value
of embedded derivative liability
|
|
|
-
|
|
|
|
-
|
|
Change in fair value
of warrants liability
|
|
|
1,871,074
|
|
|
|
54,651
|
|
Amortization of
discount and issuance cost of the Notes
|
|
|
898,634
|
|
|
|
-
|
|
Change in fair value
of forward contract
|
|
|
2,435
|
|
|
|
-
|
|
Foreign currency
exchange losses (gains)
|
|
|
2,051,596
|
|
|
|
(2,519,486)
|
|
Losses on disposals
of property, plant and equipment
|
|
|
10,292
|
|
|
|
4,817
|
|
Deferred income tax
benefit
|
|
|
(2,018,757)
|
|
|
|
(1,880,228)
|
|
Change in
operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Restricted
cash
|
|
|
(6,427,562)
|
|
|
|
6,082,662
|
|
Accounts
receivable
|
|
|
72,318,976
|
|
|
|
(132,230,006)
|
|
Amounts due from a
related party
|
|
|
-
|
|
|
|
6,534
|
|
Inventories
|
|
|
(109,198,972)
|
|
|
|
(63,358,285)
|
|
Prepaid expenses and
other current assets
|
|
|
(3,719,794)
|
|
|
|
(2,134,119)
|
|
Other non-current
assets
|
|
|
-
|
|
|
|
1,435
|
|
Bills
payable
|
|
|
18,538,133
|
|
|
|
15,676,880
|
|
Accounts
payable
|
|
|
32,823,457
|
|
|
|
113,429,086
|
|
Income taxes
payable
|
|
|
(8,996,712)
|
|
|
|
17,835,057
|
|
Accrued expenses and
other current liabilities
|
|
|
5,935,116
|
|
|
|
5,662,472
|
|
Net cash provided by operating
activities
|
|
|
148,748,369
|
|
|
|
115,646,525
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchase of time
deposits
|
|
|
(626,994,741)
|
|
|
|
(460,292,902)
|
|
Proceeds from
maturity of time deposits
|
|
|
663,216,581
|
|
|
|
231,849,776
|
|
Purchases of and
deposits for property, plant and equipment
|
|
|
(334,092,742)
|
|
|
|
(21,461,391)
|
|
Purchase of land use
rights
|
|
|
(1,460,754)
|
|
|
|
-
|
|
Net cash used in investing
activities
|
|
|
(299,331,656)
|
|
|
|
(249,904,517)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from bank
borrowings
|
|
|
797,615,642
|
|
|
|
503,843,151
|
|
Repayment of bank
borrowings
|
|
|
(831,932,534)
|
|
|
|
(358,190,868)
|
|
Redemption of
redeemable Series C convertible preferred stock
|
|
|
-
|
|
|
|
-
|
|
Proceeds from Senior
Notes Payable
|
|
|
148,396,175
|
|
|
|
-
|
|
Payment of issuance
costs of the Notes
|
|
|
(4,718,452)
|
|
|
|
-
|
|
Proceeds from
exercise of Series A investor warrants
|
|
|
596,740
|
|
|
|
-
|
|
Dividends paid to
Series C convertible preferred stockholders
|
|
|
-
|
|
|
|
-
|
|
Release of restricted
cash as collateral for bank borrowings
|
|
|
10,022,398
|
|
|
|
5,733,852
|
|
Placement of
restricted cash as collateral for bank borrowings
|
|
|
(20,612,868)
|
|
|
|
(8,173,789)
|
|
Net cash provided by financing
activities
|
|
|
99,367,101
|
|
|
|
143,212,346
|
|
Effect of foreign
currency exchange rate changes on cash and cash
equivalents
|
|
|
1,126,894
|
|
|
|
2,768,948
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
|
(50,089,292)
|
|
|
|
11,723,302
|
|
Cash and cash
equivalents at beginning of year
|
|
|
95,545,904
|
|
|
|
83,822,602
|
|
Cash and cash
equivalents at end of year
|
|
|
45,456,612
|
|
|
|
95,545,904
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
Interest paid, net of
capitalized interest
|
|
|
33,537,952
|
|
|
|
15,413,648
|
|
Income taxes
paid
|
|
|
29,288,894
|
|
|
|
30,742,291
|
|
Non-cash investing
and financing activities:
|
|
|
|
|
|
|
|
|
Accrual for purchase
of equipment
|
|
|
-
|
|
|
|
21,398,595
|
|
Accrual for issuance
cost of the Notes
|
|
|
202,712
|
|
|
|
-
|
|
CHINA XD PLASTICS
COMPANY LIMITED
|
Reconciliation of
Net Income to EBITDA
|
|
|
Three Months
Ended
|
Years
Ended
|
|
December
31,
|
December
31,
|
|
2014
|
2013
|
2014
|
2013
|
Net income
|
$35,785,672
|
$57,519,811
|
$120,776,369
|
$133,838,845
|
Interest
expense
|
10,459,305
|
4,440,559
|
41,518,878
|
15,250,780
|
Income tax
expense
|
1,685,597
|
21,388,864
|
18,266,277
|
46,697,120
|
Depreciation and amortization expense
|
5,907,853
|
5,450,729
|
22,916,893
|
21,420,723
|
EBITDA
|
53,838,427
|
88,799,963
|
203,478,417
|
217,207,468
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/china-xd-plastics-announces-fourth-quarter-and-fiscal-year-2014-financial-results-300050742.html
SOURCE China XD Plastics Company Limited