HARBIN, China, Aug. 5, 2016 /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 second quarter ended
June 30, 2016.
Second Quarter 2016 Financial Highlights
- Revenue was $277.1 million, an increase of 4.4% YoY and
28.9% sequentially
- Gross profit was $60.3 million, an increase of 17.1% YoY
and 73.3% sequentially
- Gross margin of 21.8% increased 240 basis points YoY and 560
basis points sequentially
- Net income was $33.3 million, an increase of 30.6% YoY and
192.1% sequentially
- Total volume shipped was 89,403
metric tons, up 5.4% YoY and 16.5% sequentially
"We are pleased with the financial results of the second quarter
as they are consistent with our expectations of a steady recovery
throughout China's automotive
supply chain," said Jie Han,
Chairman of the Board of Directors and Chief Executive
Officer. "According to the China Association of Automobile
Manufacturers, the number of automobiles manufactured in
China increased 10.5% in
June 2016 compared to the same month
in 2015. We are particularly pleased to see this improvement
coincide with our progress in expanding our market into new growth
frontiers, such as the South and Central
China regions, in addition to our continued and steady
business development in Southwest and East China."
Mr. Han continued, "As a follow-up to our announced product
testing trials and a pilot trial with new customers outside of
China, as expected, commercial
orders of higher-end products including specialty plastic alloy
from the overseas market were received and the products were
delivered in the second quarter of 2016. Both the improvement in
macroeconomic conditions and our overseas new customer efforts have
contributed to the improvement of our operational performance and
key financial performance metrics such as sales volume, average
selling price and gross and net margin."
"As previously announced, we held a commissioning ceremony at
our Sichuan manufacturing facility
on July 7th, 2016, an important
milestone in our corporate development. Our plant has been
designed with the highest production specifications with
state-of-the-art equipment to facilitate product deployment into
new growth verticals while maintaining the highest standards in
quality control and batch consistency," continued Mr. Han. "The new
facility extends our geographical reach beyond our established
Northeast base as the Southwest region is rapidly becoming an
important economic driver in China. In addition, the new campus will
diversify our product platform into additional high-growth
verticals such as ships, high-speed
rail, airplanes, bio-degradable materials, medical-grade materials
and food packaging. We anticipate 60,000 metric tons
contribution of production capacity in the second half of this year
at the new facility."
"In addition to our new Sichuan
campus, our new facility in Dubai
also extends our specialized high-tech products into an important
new market. This highly specialized facility will ultimately
enable more active inroads into the markets of Europe, the Middle
East and other international regions."
"China XD continues to value our deep working relationships with
our customers and is committed to create lasting value to
customers, employees and shareholders with our culture of hard work
and innovation, which we believe differentiates us from our
competitors. We expect that our expansion into Southwest and
Central China and our Dubai presence will strengthen our leadership
position as we penetrate new
markets. As evidenced by the current quarter's results, we
anticipate benefiting from a continued recovery throughout the
Chinese automotive supply chain and look forward to additional
progress in both our domestic and international business and
reiterate our fiscal 2016 financial guidance," Mr. Han
concluded.
Second Quarter 2016 Results
Revenues were $277.1 million in
the second quarter ended June 30,
2016, an increase of $11.7
million or 4.4% compared to $265.4
million in the same period of last year. This was due
to a 5.4% increase in sales volume and 4.0% increase in the average
RMB selling price of our products, offset somewhat by a 4.5%
negative impact from the exchange rate due to a weakening RMB
against the US dollar.
Premium products (PA66, PA6, Plastic Alloy, PLA, POM and PPO) in
total accounted for 80.6% of revenues, compared to 78.5% in the
prior year period. The Company continued to shift its production
mix from traditional polymer materials to higher-end products due
to (i) the greater growth potential of advanced modified plastics
in luxury automobile models in China, (ii) the stronger demand as a result of
promotion by the Chinese government for clean energy vehicles
and (iii) better quality from end consumer recognition of
higher-end cars made by automotive manufacturers from Chinese and
Germany joint ventures,
and U.S. and Japanese joint ventures, which manufacturers tend to use more
and higher-end modified plastics in
quantity per vehicle in China.
Gross profit was $60.3 million in
the second quarter ended June 30,
2016 compared to $51.5 million
in the same period of 2015, representing an increase of
$8.8 million or 17.1%. Gross margin
increased to 21.8% during the quarter ended June 30, 2016 from 19.4% during the same quarter
of 2015 primarily due to a greater contribution from higher-margin
products sold overseas.
General and administrative (G&A) expenses was $6.6 million in the quarter ended June 30, 2016, which was stable as compared to
$6.6 million in the same period in
2015.
Research and development (R&D) expenses were $5.9 million in the quarter ended June 30, 2016 compared with $6.7 million during the same period in 2015, a
decrease of $0.8 million or
11.9%. This decrease reflects our improved efficiency in
managing our R&D projects and our efforts to adjust our R&D
activities on new products primarily for industrialized
applications from automotive to other advanced fields such as
ships, airplanes, high-speed rail, 3D printing materials,
biodegradable plastics and medical devices. As of June 30, 2016, we were engaged in 187 ongoing
R&D projects.
Total operating income was $47.4
million in the second quarter ended June 30, 2016 compared to $37.8 million in the same period of 2015,
representing an increase of $9.6
million or 25.4%. This increase is primarily due to a higher
gross margin and lower research and developed expenses, with stable
general and administrative expenses.
Net interest expense was $9.0
million for the three-month period ended June 30, 2016, compared to net interest expense
of $8.5 million in the same period of
2015, primarily due to (i) the decrease of interest income which
was caused by the decrease of the average interest rate of 2.4% for
the three month period ended June 30,
2016 as compared to 3.1% for the same period of 2015,
partially offset by the increase of average deposit balance in the
amount of $409.6 million for the
three months ended June 30, 2016
compared to $344.5 million for the
same period of 2015; and partially offset by (ii) the decrease in
interest expense which was caused by the decrease of the average
interest rate of 5.2% for the three months ended June 30, 2016 as compared to 5.3% for the three
months ended June 30, 2015, partially
offset by the increase in short-term and long-term loans in the
amount of $496.6 million for the
three months ended June 30, 2016 as
compared to $409.9 million of prior
year.
The effective income tax rate for the three-month periods ended
June 30, 2016 and 2015 was 13.6% and
14.7%, respectively. The decrease was primarily due to Heilongjiang
Xinda Group's R&D expense super deduction, partially offset by
the effect of the tax rate differential on entities not subject to
PRC income tax, the effect of non-deductible expenses and the
increase of valuation allowances against deferred income tax assets
of certain subsidiaries, which were at a cumulative loss position.
The effective income tax rate for the three-month period ended
June 30, 2016 differs from the PRC
statutory income tax rate of 25% primarily due to the effect of tax
rate differential on entities not subject to PRC income tax
and the super deduction of R&D
expense which
was partially offset by the effect of non-deductible
expenses.
Net income was $33.3 million in
the quarter ended June 30, 2016,
compared to $25.5 million for the
same period of the prior year, representing an increase of
$7.8 million or 30.6%. Basic and
diluted earnings per share were $0.51, compared to $0.39 per basic and diluted share in the second
quarter of 2015.
The average number of shares used in the computation of basic
and diluted earnings per share for the three months ended
June 30, 2016 was $49.4 million, compared to 49.2 million in the
prior year period.
Earnings before interest, tax, depreciation and amortization
(EBITDA) was $56.4 million for the
second quarter of 2016, compared to EBITDA of $47.8 million in the same period of 2015,
representing an increase of $8.6
million or 18.0%. 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 June 30, 2016, the Company
had $58.0 million in cash and cash
equivalents, $282.5 million in time
deposits with commercial banks, $187.1
million in working capital (current assets minus current
liabilities) and a current ratio (current assets divided by current
liabilities) of 1.21, after giving
effect to the announced redemption
of its $150 million 11.75% guaranteed
senior notes due 2019 on August 29,
2016. Stockholders' equity as of June
30, 2016 was $609.7 million,
compared to $578.0 million as of
December 31, 2015.
Inventories increased by 43.2% from fiscal year end 2015 as a
result of more purchases made by the Company to take advantage of
the lower purchase price of the raw materials and our strategy to
stock up on inventory and prepare for the opening of Sichuan plant.
The aggregate short-term and long-term bank loans increased by
28.6% from fiscal year end 2015 as the result of utilization of
existing lines of credit. We believe our current debt level is
manageable. We define the manageable debt level as the sum of
aggregate short-term and long-term loans, and notes payable over
total assets. As of June 30,
2016, due to the announced redemption of the 11.75%
guaranteed senior notes due 2019, notes payable within one-year was
$146.2 million, net of discount.
Recent Events
On July 8, 2016, the Company
announced that it held a commissioning ceremony on July 7, 2016 at its new Sichuan manufacturing facility. Over 700
participants attended the event which showcased the new fully
automated facility. The Sichuan campus will diversify the Company's
product platform into additional high-growth verticals such as
ships, high-speed rail, airplanes,
bio-degradable materials, medical-grade materials and food
packaging. The plant has been designed at state-of-the-art production
specifications so as to maintain the highest and most consistent
standards in quality control and batch consistency.
On June 30, 2016, the Company
announced to redeem all of the
11.75% guaranteed senior notes due on February 4, 2019 (the "Notes") outstanding on
August 29, 2016 (the "Redemption
Date") at a redemption price equal to 100% of the principal amount
of the Notes plus the Applicable Premium (as defined in the
Indenture) as of the Redemption Date (the "Redemption Price") plus
accrued and unpaid interest up to (but not including) the
Redemption Date. The Notes have an
assessable principal amount of $150,000,000 and an estimated carrying amount of
$146,432,000 as of August 29, 2016. The redemption amount on the
Redemption Date is estimated to be approximately $165,285,000 and accrued and unpaid interest up
to (but not including) the Redemption Date equal to approximately
$1,224,000. A loss upon
extinguishment of the Notes in the amount of $18,853,000
representing the difference between the redemption amount and the
net carrying amount of the Notes, is to be recognized in the
statement of comprehensive income in the quarter ended September 30, 2016.
Business Outlook and Guidance
The Company reiterates its financial guidance for fiscal 2016
with revenue to range between $1.0 billion
and $1.1 billion and net income to range between
$100.0 million to $110.0 million.
This is based on the anticipation of a steady recovery throughout
the Chinese automotive supply chain, the Company's belief in its
ability to secure new customers and a stabilization of crude oil
pricing and its impact on polymer composite materials in 2016. This
forecast also assumes contributions from the Sichuan plant, which will start production in
the second half of 2016. It also assumes a stable exchange
rate of the US dollar to RMB and excludes certain non-cash and
non-operational items. This financial guidance reflects the
Company's preliminary view of its business outlook for fiscal 2016
and is subject to revision based on changing market conditions at
any time.
Conference Call
China XD Plastics' management will host a conference call at
9:00 a.m. ET on Friday, August 5, 2016, to discuss its second
quarter of 2016 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 9290615.
A recording of the conference call will be available through
August 13, 2016, by calling +1 (866)
846-0868 (for callers in the U.S.) and entering pass code
9290615.
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 28 automobile brands manufactured in
China, including without
limitation, Audi, Mercedes Benz,
BMW, Buick, Chevrolet, VW Passat, Golf and Jetta, 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 June 30, 2016, 369 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 the
Company's English website at http://www.chinaxd.net, and the
Chinese website at http://www.xdholding.com.
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
2016; 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)
Phone: +1 (212) 747-1118
Email: cxdc@chinaxd.net
Investor Relations: Grayling Communications Inc.
Ms. Vivian Chen, Managing
Director
US: +1 (347) 481-3711
Email: Vivian.chen@grayling.com
- Financial Tables Follow -
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
June 30,
2016
|
|
|
December 31,
2015
|
|
|
US$
|
|
|
US$
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
57,980,914
|
|
|
|
119,928,485
|
Restricted cash
|
|
|
64,502,724
|
|
|
|
50,852,327
|
Time deposits
|
|
|
282,452,648
|
|
|
|
237,626,806
|
Accounts receivable,
net
|
|
|
200,490,313
|
|
|
|
234,542,739
|
Amounts due from a related
party
|
|
|
-
|
|
|
|
244,836
|
Inventories
|
|
|
421,961,166
|
|
|
|
294,665,195
|
Prepaid expenses and other current
assets
|
|
|
51,054,446
|
|
|
|
15,675,848
|
Total current
assets
|
|
|
1,078,442,211
|
|
|
|
953,536,236
|
Property, plant and equipment,
net
|
|
|
810,183,747
|
|
|
|
571,746,507
|
Land use rights, net
|
|
|
23,809,904
|
|
|
|
24,506,837
|
Prepayments to equipment and construction
suppliers
|
|
|
14,415,697
|
|
|
|
183,226,006
|
Other non-current
assets
|
|
|
12,677,399
|
|
|
|
18,966,622
|
Total
assets
|
|
|
1,939,528,958
|
|
|
|
1,751,982,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED
STOCK AND STOCKHOLDERS' EQUITY
|
Current
liabilities:
|
|
|
|
|
|
|
|
Short-term bank loans, including current portion of
long-term bank loans
|
|
|
422,158,665
|
|
|
|
284,339,089
|
Bills payable
|
|
|
47,029,799
|
|
|
|
33,522,287
|
Accounts payable
|
|
|
195,336,669
|
|
|
|
257,417,000
|
Amounts due to related
parties
|
|
|
131,394
|
|
|
|
8,439
|
Income taxes payable
|
|
|
2,989,790
|
|
|
|
6,881,946
|
Notes payable
|
|
|
146,231,067
|
|
|
|
-
|
Accrued expenses and other current
liabilities
|
|
|
223,664,783
|
|
|
|
140,988,712
|
Total current
liabilities
|
|
|
1,037,542,167
|
|
|
|
723,157,473
|
Long-term bank loans, excluding current
portion
|
|
|
81,672,771
|
|
|
|
107,481,709
|
Notes payable
|
|
|
-
|
|
|
|
145,634,996
|
Deferred income
|
|
|
71,254,125
|
|
|
|
62,039,050
|
Other non-current
liabilities
|
|
|
41,767,586
|
|
|
|
38,046,917
|
Total
liabilities
|
|
|
1,232,236,649
|
|
|
|
1,076,360,145
|
|
|
|
|
|
|
|
|
Redeemable Series D convertible preferred stock
(redemption amount of
US$197,775,400 and US$184,461,800 as of June 30, 2016 and
December
31, 2015)
|
|
|
97,576,465
|
|
|
|
97,576,465
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Series B preferred
stock
|
|
|
100
|
|
|
|
100
|
Common stock, US$0.0001 par value, 500,000,000 shares
authorized,
49,427,191 shares and 49,344,284 shares issued, 49,406,191 shares
and
49,323,284 shares outstanding as of June 30, 2016 and December
31,
2015, respectively
|
|
|
4,941
|
|
|
|
4,933
|
Treasury stock, 21,000 shares at
cost
|
|
|
(92,694)
|
|
|
|
(92,694)
|
Additional paid-in
capital
|
|
|
82,390,348
|
|
|
|
81,919,932
|
Retained earnings
|
|
|
560,269,109
|
|
|
|
515,555,985
|
Accumulated other comprehensive
loss
|
|
|
(32,855,960)
|
|
|
|
(19,342,658)
|
Total stockholders'
equity
|
|
|
609,715,844
|
|
|
|
578,045,598
|
Commitments and
contingencies
|
|
|
-
|
|
|
|
-
|
Total liabilities,
redeemable convertible preferred stock and
stockholders' equity
|
|
|
1,939,528,958
|
|
|
|
1,751,982,208
|
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
|
|
|
Three-Month Period Ended June
30,
|
|
|
Six-Month Period Ended June
30,
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
277,139,662
|
|
|
|
265,412,742
|
|
|
|
492,169,820
|
|
|
|
487,339,137
|
Cost of revenues
|
|
|
(216,795,181)
|
|
|
|
(213,919,846)
|
|
|
|
(397,011,688)
|
|
|
|
(387,203,965)
|
Gross
profit
|
|
|
60,344,481
|
|
|
|
51,492,896
|
|
|
|
95,158,132
|
|
|
|
100,135,172
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling expenses
|
|
|
(382,038)
|
|
|
|
(438,041)
|
|
|
|
(667,174)
|
|
|
|
(734,861)
|
General and administrative
expenses
|
|
|
(6,596,023)
|
|
|
|
(6,592,032)
|
|
|
|
(11,665,697)
|
|
|
|
(11,556,790)
|
Research and development
expenses
|
|
|
(5,906,719)
|
|
|
|
(6,659,310)
|
|
|
|
(10,816,286)
|
|
|
|
(12,473,173)
|
Total operating
expenses
|
|
|
(12,884,780)
|
|
|
|
(13,689,383)
|
|
|
|
(23,149,157)
|
|
|
|
(24,764,824)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
47,459,701
|
|
|
|
37,803,513
|
|
|
|
72,008,975
|
|
|
|
75,370,348
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
1,615,728
|
|
|
|
2,466,291
|
|
|
|
3,229,991
|
|
|
|
4,894,362
|
Interest expense
|
|
|
(10,628,222)
|
|
|
|
(11,038,295)
|
|
|
|
(21,532,881)
|
|
|
|
(21,667,648)
|
Foreign currency exchange gains
(losses)
|
|
|
(56,091)
|
|
|
|
322,056
|
|
|
|
371,574
|
|
|
|
231,641
|
Gains on foreign currency forward
contracts
|
|
|
-
|
|
|
|
305,825
|
|
|
|
-
|
|
|
|
660,344
|
Government grant
|
|
|
218,286
|
|
|
|
4,814
|
|
|
|
426,719
|
|
|
|
4,814
|
Total non-operating
expense, net
|
|
|
(8,850,299)
|
|
|
|
(7,939,309)
|
|
|
|
(17,504,597)
|
|
|
|
(15,876,487)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
38,609,402
|
|
|
|
29,864,204
|
|
|
|
54,504,378
|
|
|
|
59,493,861
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
(5,253,628)
|
|
|
|
(4,385,601)
|
|
|
|
(9,791,254)
|
|
|
|
(8,611,232)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
33,355,774
|
|
|
|
25,478,603
|
|
|
|
44,713,124
|
|
|
|
50,882,629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
0.51
|
|
|
|
0.39
|
|
|
|
0.68
|
|
|
|
0.77
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
|
33,355,774
|
|
|
|
25,478,603
|
|
|
|
44,713,124
|
|
|
|
50,882,629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment, net of nil
income
taxes
|
|
|
(18,440,326)
|
|
|
|
(616,961)
|
|
|
|
(13,513,302)
|
|
|
|
(781,721)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
|
14,915,448
|
|
|
|
24,861,642
|
|
|
|
31,199,822
|
|
|
|
50,100,908
|
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
Six-Month Period
Ended
June 30,
|
|
|
2016
|
|
|
2015
|
|
|
US$
|
|
|
US$
|
Cash flows from operating
activities:
|
|
|
|
|
|
Net cash provided by (used in) operating
activities
|
|
|
(93,887,642)
|
|
|
|
71,660,883
|
|
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
|
|
|
Proceeds from maturity of time
deposits
|
|
|
236,818,725
|
|
|
|
237,499,197
|
Purchase of time
deposits
|
|
|
(286,909,102)
|
|
|
|
(231,080,300)
|
Purchase of land use
rights
|
|
|
-
|
|
|
|
(6,904,447)
|
Purchase of and deposits for property, plant and
equipment
|
|
|
(40,022,079)
|
|
|
|
(119,535,975)
|
Government grant related to the construction of
Sichuan plant
|
|
|
8,809,473
|
|
|
|
-
|
Net cash used in investing
activities
|
|
|
(81,302,983)
|
|
|
|
(120,021,525)
|
|
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
|
|
|
Proceeds from bank
borrowings
|
|
|
399,343,916
|
|
|
|
323,407,459
|
Repayments of bank
borrowings
|
|
|
(280,843,603)
|
|
|
|
(238,181,426)
|
Release of restricted cash as collateral for bank
borrowings
|
|
|
28,378,420
|
|
|
|
-
|
Placement of restricted cash as collateral for bank
borrowings
|
|
|
(32,492,262)
|
|
|
|
(29,729,123)
|
Net cash provided by financing
activities
|
|
|
114,386,471
|
|
|
|
55,496,910
|
|
|
|
|
|
|
|
|
Effect of foreign currency exchange rate changes on
cash and cash equivalents
|
|
|
(1,143,417)
|
|
|
|
109,400
|
Net increase (decrease) in cash and cash
equivalents
|
|
|
(61,947,571)
|
|
|
|
7,245,668
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of
period
|
|
|
119,928,485
|
|
|
|
45,456,612
|
Cash and cash equivalents at end of
period
|
|
|
57,980,914
|
|
|
|
52,702,280
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow
information:
|
|
|
|
|
|
|
|
Interest paid, net of capitalized
interest
|
|
|
20,737,714
|
|
|
|
20,159,080
|
Income taxes paid
|
|
|
10,654,265
|
|
|
|
3,706,530
|
Non-cash investing and financing
activities:
|
|
|
|
|
|
Government grant related to construction in the form
of repayment of bank loan
on behalf of the Company by the
government
|
|
|
-
|
|
|
|
11,267,062
|
Accrual for purchase of equipment and construction
included in accrued expenses
and other current liabilities
|
|
|
88,224,035
|
|
|
|
295,893
|
CHINA XD PLASTICS COMPANY
LIMITED
|
Reconciliation of Net Income to
EBITDA
|
|
|
Three Months Ended
|
|
June 30th,
|
|
2016
|
2015
|
Net Income
|
$33,355,774
|
$25,478,603
|
Interest Expense
|
10,628,222
|
11,038,295
|
Income Tax Expense
|
5,253,628
|
4,385,601
|
Depreciation and amortization
expense
|
7,178,232
|
6,929,627
|
EBITDA
|
56,415,856
|
47,832,126
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/specialty-chemical-company-china-xd-plastics-announces-second-quarter-2016-financial-results-300309742.html
SOURCE China XD Plastics Company Limited