– Revenue of $237.8
million, up 10.6% YoY –
– Net Income of $9.9 million, down 13.2% YoY
–
– Reiterating Fiscal 2017 Guidance of
$1.2 - $1.3 Billion in Revenue,
$85.0 - $100.0 Million in Net Income
–
HARBIN, China, May 10, 2017 /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 first quarter ended March 31,
2017.
First Quarter 2017 Financial
Highlights
- Revenue was $237.8 million, an increase of 10.6% YoY
- Gross profit was $34.8 million, which was approximately
equivalent YoY
- Gross margin of 14.6%, a decrease of 160 basis points YoY
- Net income was $9.9 million, a decrease of 13.2% YoY
- EBITDA was $34.0 million, which
was approximately equivalent YoY
- Total volume shipped was 85,416 metric tons, up 11.3% YoY
"We are pleased to report our first quarter 2017 results as they
reflect our strong operating capabilities as well as the results of
our strategic initiatives. Our domestic sales showed
favorable year-over-year comparisons as we continued to enter new
geographic markets. Our high value-added products enable
better safety and performance features for our automobile
manufacturing customers and have wide applications in numerous
verticals as well. However, a contraction in our gross margin
occurred in the quarter due to a lower gross margin from higher-end
products sold in the domestic market and an increase in cost of
goods sold resulting from increased depreciation attributable to
the expansion of our Sichuan
campus. In terms of our international sales, we suspended overseas
sales to an international customer due to an account receivable
balance overdue situation which will be resumed once the agreed
upon terms for payment are met and all
overdue balances are collected," said Jie Han, Chairman of the Board of Directors and
Chief Executive Officer.
"After a strong year in 2016, we are beginning to see moderating
industry fundamentals in our sector. The China Association of
Automobile Manufacturers reports that the growth of auto sales in
China slowed in 2017 to date,
affected by both the holidays and the Chinese government's
restriction on the implementation of the favorable tax deductions
for small engine cars. While we anticipate slower growth as
compared to last year, we believe that our broad and deep product
platform, new geographical positioning and expanding production
capabilities will enable us to capture market share from our
competitors and maintain solid profitability."
Mr. Han continued, "We continued to see significant revenue
contributions from new growth regions in the first quarter,
augmented by the continued ramp of our Sichuan manufacturing facility. Sales in the
South China and the Central China regions increased 104.2% and
50.2%, respectively, from the same period in 2016, and our presence
in the region has enabled us to secure new customers and improved
market penetration. Our Sichuan
facility now has 50 production lines with 216,000 metric tons of
annual production capacity. The Sichuan facility will ultimately add 300,000
metric tons of annual production to our domestic capacity for a
total domestic capacity of 690,000 metric tons. We expect
that construction at the complex will be completed by the end of
the second quarter of 2017.
Although we expect that automotive applications will continue to be
our core business, high precision equipment in our new facilities
will enable us to diversify our product platform to serve an array
of high-growth verticals which will help to propel the Company's
growth."
"We are also pleased that our strategic plan to develop
diversified products has gained significant traction with the
signing of a definitive agreement with the People's Government of
Shunqing District, Nanchong City of Sichuan Province for the
production of 300,000 metric tons of bio-composite materials and
additive manufacturing and 20,000 metric tons of functional
masterbatch. The project will add 320,000 metric tons of
production capacity and we will also benefit from the favorable tax
policies under China's 'Go West
Campaign' by locating the project in Southwest China."
"Our new facility in Dubai also
extends our specialized high-tech products into an important
overseas market. We plan to complete the installation of 45
production lines with 12,000 metric tons of annual production
capacity by the first quarter of 2018, and to complete the
installation of an additional 50 production lines with 13,000
metric tons of annual production capacity by the second quarter of
2018. This will bring the total annual production capacity in
our Dubai facility to 25,000
metric tons. The Dubai facility
will target high-end products for overseas markets and will
ultimately enable more active inroads into the markets of
Europe, the Middle East, Russia and other overseas markets."
"We believe that our increased production capabilities, new
product offerings and a more diversified customer base form a solid
platform which will enable sustainable corporate growth. In
addition, our strategic geographical expansion leverages our
technical expertise and customer-centric philosophy. Further,
our product diversification is reflective of both our industry
leadership in China's auto market
and the growing demand of high technology sectors as driven by
China's new economy. We
reiterate our financial guidance for fiscal 2017 and continue to
appreciate the support of our shareholders and all of our
stakeholders," Mr. Han concluded.
First Quarter 2017 Results
Revenues were $237.8 million for
the first quarter of 2017, compared to $215.0 million for the same period of 2016,
representing an increase of $22.8
million, or 10.6%. The year-over-year increase was
primarily due to an 11.3% increase in sales volume and a 4.8%
increase in the average RMB selling price of our products.
The increase in revenues in the first quarter of 2017 was driven
by growth in demand for our products in the domestic China market, our efforts to expand our
customer base attributable to our new plant in Sichuan and our efforts to increase overseas sales. We recorded
sales increases of 104.2% in South
China, 50.2% in Central
China, 30.2% in Southwest
China and 14.2% in North
China as compared to the same period in 2016. In 2017,
overseas sales were suspended due to an accounts receivable balance overdue situation with
an existing overseas customer. On April 1,
2017, the Company and the overseas customer reached an agreement on the credit payment
method and product refining
costs. We expect to resume sales to this overseas
customer after retrieving all previous overdue payments from this
customer in the second quarter of 2017. The customer has made a
payment of $41.0 million in the first
quarter of 2017 and has an unpaid balance of $33.6 million to date.
Premium products (PA66, PA6, Plastic Alloy, PLA, POM and PPO) in
total accounted for 81.3% of revenues in the first quarter of 2017,
compared to 77.3% for the same period of 2016. 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
for higher-end products as a result of the Chinese
government's promotion for clean energy vehicles, and (iii) better
end consumer recognition of higher-end cars made by automotive
manufacturers from Chinese and Germany joint ventures, and U.S. and
Japanese joint ventures, where manufacturers tend to use more
and higher-end modified plastics in quantity per vehicle in
China.
Gross profit was $34.8 million for
the first quarter of 2017, compared to $34.8
million for the same period of 2016, representing a stable
period to period comparison. Gross margin was 14.6% for the
first quarter of 2017, compared to 16.2% for the same period of
2016, primarily due the lower gross margin of higher-end products
sold in the domestic market in the current period as compared to
the same period in 2016.
General and administrative (G&A) expenses were $7.1 million for the first quarter of 2017,
compared to $5.1 million for the same
period of 2016, representing an increase of $2.0 million, or 39.2%. This increase was
primarily due to the increases in salary and welfare expenses, due
to the increase in the number of management and general staff.
Research and development (R&D) expenses were $5.9 million for the first quarter of 2017,
compared to $4.9 million for the same
period of 2016, representing an increase of $1.0 million, or 20.4%. This increase was
primarily due to (i) elevated R&D activities to meet the higher
quality requirements of potential customers from Europe, (ii) increased R&D efforts
directed towards applications in new electrical equipment,
electronics, alternative energy applications, power devices,
aviation equipment and ocean engineering, in addition to other new
products primarily for advanced industrialized applications in the
automobile sector and in new verticals such as ships, airplanes,
high-speed rail, 3D printing materials, biodegradable plastics and
medical, and (iii) an increase in depreciation expenses after
R&D equipment was put into use at Sichuan Enterprise Group
Company Limited ("Sichuan Xinda"). As of March 31, 2017, the number of ongoing research
and development projects was 255.
Operating income was $21.3 million
for the first quarter of 2017, compared to $24.5 million for the same period of 2016,
representing a decrease of $3.2
million, or 13.1%. This decrease was primarily due to higher
G&A expenses and higher R&D expenses.
Net interest expense was $8.8
million for the first quarter of 2017, compared to net
interest expense of $9.3 million for
the same period of 2016, representing a decrease of $0.5 million, or 5.4%. This decrease was
primarily due to (i) the increase of average deposit balance
in amount of $485.3 million for the
first quarter of 2017 compared to $360.8
million for the same period in 2016, (ii) a decrease of
interest expense due to a decrease in the average interest rate to
4.8% for the first quarter of 2017 compared to 5.8% for the same
period in 2016, partially offset by (iii) a decrease of
interest income resulting from a decrease in the average interest
rate to 1.2% for the first quarter compared to 1.7% of the same
period in 2016, and (iv) an increase in the average short-term
and long-term loan balance of $785.4
million for the first quarter of 2017 compared to
$415.9 million for the same period in
2016.
Income tax expense was $3.6
million for the first quarter of 2017, representing an
effective income tax rate of 26.4%, compared to income tax expense
of $4.5 million in the same period of
2016, representing an effective income tax rate of 28.5%. The
effective income tax rate for the three-month period ended
March 31, 2017 differs from
the People's Republic of China
(PRC) statutory income tax rate of 25% primarily due to (i) the
consolidated income before income taxes for the current quarter
decreased due to the operating losses of entities not subject to
income tax, and (ii) non-deductible expenses in the PRC operating
entities, which were partially offset by (iii) the additional
deduction of R&D for the major PRC operating entities; and (iv)
Sichuan Xinda's preferential income tax rate.
Net income was $9.9 million for
the first quarter of 2017, compared to $11.4
million for the same period of 2016, representing a decrease
of $1.5 million, or 13.2%. Basic and
diluted earnings per share in the current quarter were $0.15, compared to $0.17 per basic and diluted share for the same
period of 2016. The average number of shares used in the
computation of basic and diluted earnings per share current quarter
was 49.5 million, compared to 49.4 million shares for basic and
diluted earnings per share in the prior year period.
Earnings before interest, tax, depreciation and amortization
(EBITDA) was $34.0 million for the
first quarter of 2017, virtually unchanged from EBITDA of
$33.9 million for the same period of
2016. 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 March 31, 2017, the Company
had $57.7 million in cash and cash
equivalents, $77.8 million in time
deposits with commercial banks, negative working capital of
$179.8 million (current assets minus
current liabilities) and a current ratio (current assets divided by
current liabilities) of 0.8 as compared to 1.2 as of December 31, 2016. The decrease in the current
ratio was primarily because the Company's cash and cash
equivalents, restricted cash and time deposits decreased by 37.8%,
and short-term loans increased by 43.4% for the increased
prepayment obligations to equipment suppliers for the Company's new
Nanchong Project (see Recent Events, below). Stockholders'
equity as of March 31, 2017 was
$648.2 million compared to
$634.3 million as of December 31, 2016.
Inventories increased by 30.9% to $367.7
million as of the first quarter of 2017 as compared to
fiscal year end 2016 as a result of more purchases of raw materials
and the Company's strategy to stock up on finished goods for
upcoming orders. Prepayment to equipment suppliers increased by
2,583.1% mainly because of advances to purchases for the new
Nanchong Project. The aggregate short-term and long-term bank
loans increased by 18.9% due to the utilization of existing lines
of credit to support the expansion of the Sichuan and Dubai facilities. We define the
manageable debt level as the sum of aggregate short-term and
long-term loans, and notes payable over total assets. We
expect that we will be able to meet our needs to fund operations,
capital expenditures and other commitments in the next 12 months
primarily with our cash and cash equivalents, operating cash flows
and bank borrowings.
Recent Events
On March 18, 2017, the Company
issued a press release announcing the official signing of an
agreement with the People's Government of Shunqing District,
Nanchong City, Sichuan Province,
for the production of 300,000 metric tons of bio-composite
materials and additive manufacturing and 20,000 metric tons of
functional masterbatch (the "Nanchong Project"). After
initial approval by the Board of Directors and the Company's major
investor on December 8, 2016, Sichuan
Xinda entered into a strategic investment agreement with Shunqing
Government, Nanchong City, Sichuan
Province, on December 12,
2016. Due to the uncertainty of securing the necessary land
use rights for the project, the Company waited until March 13, 2017 and entered into a "Land Use Right
Transfer Agreement" with the government agency, formalizing its
initial dialogue, and entered into a definitive agreement after
approval by the Board of Directors and its major shareholder. The
Nanchong Project will be located in a land area of 250 mu
(equivalent to 41.2 acres), where 215 mu will be designated for
bio-composite materials and additive manufacturing production and
35 mu will be designated for functional masterbatch production. The
projected total capital expenditures for the project is
approximately 2.5 billion RMB (estimated to be $357
million) and the anticipated completion will take place by the end
of December 2018. The Nanchong Project will add 320,000 metric
tons of production capacity and the Company will also benefit from
favorable tax policies under China's 'Go West Campaign'
by locating the project in Southwest China.
On February 17, 2017, the Company
issued a press release announcing that its Board of Directors (the
"Board") has received a preliminary non-binding proposal letter,
dated February 16, 2017, from its
Chairman and Chief Executive Officer, Mr. Jie Han ("Mr. Han"), XD Engineering Plastics
Company Limited ("XD Engineering"), a company incorporated in the
British Virgin Islands and wholly
owned by Mr. Han, and MSPEA Modified Plastics Holding Limited, an
affiliate of Morgan Stanley Private Equity Asia III, Inc.
(collectively, the "Buyer Consortium"), to acquire all of the
outstanding shares of common stock of the Company not already
beneficially owned by the Buyer Consortium in a "going-private"
transaction (the "Transaction") for $5.21 per share of common stock in cash.
The proposal letter states that the Buyer Consortium expects
that the Board will appoint a special committee of independent
directors to consider the proposal and make a recommendation to the
Board. The proposal letter also states that the Buyer
Consortium will not move forward with the proposed Transaction
unless it is approved by such a special committee, and the proposed
Transaction will be subject to a non-waivable condition requiring
approval by majority shareholder vote of shareholders other than
the Buyer Consortium members. The Buyer Consortium currently
beneficially owns approximately 74% of the issued and outstanding
shares of common stock of the Company on a fully diluted and
as-converted basis.
The Board has established a special committee (the "Special
Committee") of disinterested directors to consider the proposal.
The Special Committee is composed of the following
independent directors of the Company: Mr. Lawrence W. Leighton, Mr. Feng Li, and
Mr. Linyuan Zha, with Mr. Leighton serving as chairperson of
the Special Committee. The Special Committee will be
responsible for evaluating, negotiating and recommending to the
Board any proposals involving a strategic transaction by the
Company with one or more third parties. The Special Committee
intends to retain advisors, including an independent financial
advisor, to assist in the evaluation of the proposal and any
additional proposals that may be made by the Buyer Consortium.
The Special Committee cautions the Company's shareholders and
others considering trading in its securities that the Special
Committee has not made any decisions with respect to the Company's
response to the proposal. There can be no assurance that any
definitive offer will be made by the Buyer Consortium or any other
person, that any definitive agreement will be executed relating to
the proposed Transaction, or that this or any other transaction
will be approved or consummated.
Financial Guidance and Business Outlook
The Company reiterates its financial guidance for fiscal 2017
with revenue to range between $1.2 billion
and $1.3 billion, and net income to range between
$85.0 million to $100.0 million. This
is based on the anticipation of a continued recovery throughout the
Chinese automotive supply chain and a stabilization of crude oil
pricing and its impact on polymer composite materials in 2017. This
forecast also assumes additional contributions from the
Sichuan facility and that overseas
sales will be resumed in the second half of 2017. It also
assumes the average exchange rate of the US dollar to RMB at 6.8
and that the Company will incur interest expenses for loan term
loans and short term loans. This financial guidance reflects the
Company's preliminary view of its business outlook for the fiscal
year of 2017 and is subject to revision based on changing market
conditions at any time.
Conference Call
China XD Plastics' senior management will host a conference call
at 9:00 am Eastern Time on
Wednesday, May 10, 2017, to discuss
its first quarter 2017 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 5959925.
A recording of the conference call will be available through
May 17, 2017, by calling +1 (866)
846-0868 (for callers in the U.S.) and entering pass code
5959925.
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 29 automobile brands manufactured in
China, including without
limitation, AUDI, Mercedes Benz,
BMW, Toyota, Buick, Chevrolet, Mazda, Volvo, Ford, Citroen, Jinbei
and VW Passat, Golf, Jetta, etc. 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 March 31,
2017, 410 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 effectiveness,
profitability, and the marketability of its the ongoing mix shift
to more advanced products; the prospects of the Company's
Dubai facility, and the associated
expansion into Middle East,
Europe and other parts of
Asia; the prospects of the
Company's Sichuan facility, and
its penetration into Southwest
China; the Company's projections of its revenues for
performance in fiscal 2017. These forward-looking
statements can be identified by terminology such as "will,"
"expect," "project," "anticipate," "forecast," "plan," "believe,"
"estimate" and similar statements. Forward-looking statements
involve inherent risks and uncertainties and are based on current
expectations, assumptions, estimates and projections about the
Company and the industry. A number of important factors could cause
actual results to differ materially from those contained in any
forward-looking statement. Potential risks and uncertainties
include, but are not limited to, the global economic uncertainty
could further impair the automotive industry and limit demand for
our products; fluctuations in automotive sales and production could
have a material adverse effect on our results of operations and
liquidity; our financial performance may be affected by the
prospect of our Dubai facility and
the associated expansion into Middle
East, Europe and other
parts of Asia; the withdrawal of
preferential government policies and the tightening control over
the Chinese automotive industry and automobile purchase
restrictions imposed in certain major cities may limit market
demand for our products; the slowing of Chinese automotive
industry's growth; the concentration of our distributors, customers
and suppliers; 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. 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: Citigate Dewe Rogerson
Ms. Vivian Chen, Managing
Director
US: +1 (347) 481-3711
Email: Vivian.chen@citigatedr.com
- Financial Tables Follow -
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
US$
|
|
US$
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
57,695,720
|
|
168,086,445
|
Restricted
cash
|
148,303,280
|
|
103,489,402
|
Time
deposits
|
77,833,983
|
|
184,806,112
|
Accounts receivable,
net of allowance for doubtful accounts
|
187,319,795
|
|
410,049,559
|
Amounts due from
a related party
|
57,720
|
|
229,624
|
Inventories
|
367,666,903
|
|
280,939,008
|
Prepaid expenses and
other current assets
|
54,833,793
|
|
125,310,309
|
Total current
assets
|
893,711,194
|
|
1,272,910,459
|
Property, plant and
equipment, net
|
811,362,139
|
|
806,363,692
|
Land use rights,
net
|
22,546,978
|
|
22,536,397
|
Long-term prepayments
to equipment and construction suppliers
|
381,007,445
|
|
14,167,702
|
Other non-current
assets
|
10,568,563
|
|
10,521,949
|
Total
assets
|
2,119,196,319
|
|
2,126,500,199
|
|
|
|
|
LIABILITIES,
REDEEMABLE CONVERTIBLE PREFERRED STOCKS AND STOCKHOLDERS'
EQUITY
|
Current
liabilities:
|
|
|
|
Short-term loans,
including current portion of long-term bank loans
|
637,931,355
|
|
444,757,476
|
Bills
payable
|
164,625,397
|
|
148,392,677
|
Accounts
payable
|
152,260,922
|
|
320,013,040
|
Amounts due to a
related party
|
11,611
|
|
11,548
|
Income taxes
payable
|
-
|
|
897,625
|
Accrued expenses and
other current liabilities
|
118,686,093
|
|
119,339,366
|
Total current
liabilities
|
1,073,515,378
|
|
1,033,411,732
|
Long-term bank loans,
excluding current portion
|
187,697,496
|
|
249,520,615
|
Deferred
income
|
68,282,595
|
|
69,311,102
|
Other non-current
liabilities
|
43,929,163
|
|
42,420,619
|
Total
liabilities
|
1,373,424,632
|
|
1,394,664,068
|
|
|
|
|
Redeemable Series D
convertible preferred stock (redemption amount of US$219,653,000
and US$212,212,300 as of March 31, 2017 and December 31, 2016,
respectively)
|
97,576,465
|
|
97,576,465
|
Stockholders'
equity:
|
|
|
|
Series B preferred
stock
|
100
|
|
100
|
Common stock,
US$0.0001 par value, 500,000,000 shares authorized, 49,532,541
shares and 49,532,541 shares issued, 49,511,541 shares and
49,511,541 shares outstanding as of March 31, 2017 and
December 31, 2016, respectively
|
4,952
|
|
4,952
|
Treasury stock,
21,000 shares at cost
|
(92,694)
|
|
(92,694)
|
Additional paid-in
capital
|
82,722,668
|
|
82,606,404
|
Retained
earnings
|
627,069,724
|
|
617,168,735
|
Accumulated other
comprehensive loss
|
(61,509,528)
|
|
(65,427,831)
|
Total stockholders'
equity
|
648,195,222
|
|
634,259,666
|
Commitments and
contingencies
|
|
|
|
Total liabilities,
redeemable convertible preferred stocks and stockholders'
equity
|
2,119,196,319
|
|
2,126,500,199
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying
notes to the unaudited condensed consolidated financial statements
in the Company's first quarter 2017 10-Q as filed with the
SEC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
|
|
|
|
|
Three-Month Period
Ended
March 31,
|
|
2017
|
|
2016
|
|
US$
|
|
US$
|
|
|
|
|
Revenues
|
237,840,197
|
|
215,030,158
|
Cost of
revenues
|
(203,068,027)
|
|
(180,216,507)
|
Gross
profit
|
34,772,170
|
|
34,813,651
|
|
|
|
|
Selling
expenses
|
(518,813)
|
|
(285,136)
|
General and
administrative expenses
|
(7,053,671)
|
|
(5,069,674)
|
Research and
development expenses
|
(5,851,100)
|
|
(4,909,567)
|
Total operating
expenses
|
(13,423,584)
|
|
(10,264,377)
|
|
|
|
|
Operating
income
|
21,348,586
|
|
24,549,274
|
|
|
|
|
Interest
income
|
1,163,259
|
|
1,614,263
|
Interest
expense
|
(10,021,976)
|
|
(10,904,659)
|
Foreign currency
exchange losses
|
(476,085)
|
|
427,665
|
Government
grant
|
1,439,531
|
|
208,433
|
Total non-operating
expense, net
|
(7,895,271)
|
|
(8,654,298)
|
|
|
|
|
Income before income
taxes
|
13,453,315
|
|
15,894,976
|
|
|
|
|
Income tax
expense
|
(3,552,326)
|
|
(4,537,626)
|
|
|
|
|
Net income
|
9,900,989
|
|
11,357,350
|
|
|
|
|
Earnings per
common share:
|
|
|
|
Basic and
diluted
|
0.15
|
|
0.17
|
|
|
|
|
Net
Income
|
9,900,989
|
|
11,357,350
|
|
|
|
|
Other
comprehensive income
|
|
|
|
Foreign currency
translation adjustment, net of nil income taxes
|
3,918,303
|
|
4,927,024
|
|
|
|
|
Comprehensive
income
|
13,819,292
|
|
16,284,374
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying
notes to the unaudited condensed consolidated financial statements
in the Company's first quarter 2017 10-Q as filed with the
SEC
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three-Month Period
Ended
March 31,
|
|
2017
|
|
2016
|
|
US$
|
|
US$
|
Cash flows from
operating activities:
|
|
|
|
Net cash used in
operating activities
|
(57,631,880)
|
|
(25,403,676)
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Purchase of time
deposits
|
(59,853,272)
|
|
(155,330,882)
|
Proceeds from
maturity of time deposits
|
168,083,097
|
|
94,362,745
|
Purchase of and
deposits for property, plant and equipment
|
(328,428,788)
|
|
(27,399,896)
|
Refund of deposit
from an equipment supplier
|
75,052,508
|
|
-
|
Purchases of land use
rights
|
(3,036,333)
|
|
-
|
Government grant
related to the construction of Sichuan plant
|
-
|
|
2,060,355
|
Net cash used in
investing activities
|
(148,182,788)
|
|
(86,307,678)
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from bank
borrowings
|
316,586,547
|
|
166,914,532
|
Repayment of bank
borrowings
|
(188,024,421)
|
|
(131,602,645)
|
Release of restricted
cash as collateral for bank borrowings
|
6,292,727
|
|
21,341,912
|
Placement of
restricted cash as collateral for bank borrowings
|
(40,575,289)
|
|
(21,954,042)
|
Net cash provided
by financing activities
|
94,279,564
|
|
34,699,757
|
|
|
|
|
Effect of foreign
currency exchange rate changes on cash and cash
equivalents
|
1,144,379
|
|
138,350
|
Net decrease in
cash and cash equivalents
|
(110,390,725)
|
|
(76,873,247)
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
168,086,445
|
|
119,928,485
|
Cash and cash
equivalents at end of period
|
57,695,720
|
|
43,055,238
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
Interest paid, net of
capitalized interest
|
8,482,216
|
|
14,380,560
|
Income taxes
paid
|
5,057,042
|
|
6,874,104
|
Non-cash investing
and financing activities:
|
|
|
|
Accrual for purchase
property, plant and equipment
|
4,147,349
|
|
93,422,837
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying
notes to the unaudited condensed consolidated financial statements
in the Company's first quarter 2017 10-Q as filed with the
SEC
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA XD PLASTICS
COMPANY LIMITED
|
Reconciliation of
Net Income to EBITDA
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2017
|
|
2016
|
EBITDA
|
$33,969,074
|
|
$33,948,482
|
Less: Interest
expense
|
10,021,976
|
|
10,904,659
|
Income tax
expense
|
3,552,326
|
|
4,537,626
|
Depreciation and amortization expense
|
10,493,783
|
|
7,148,847
|
Net income
|
$9,900,989
|
|
$11,357,350
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/specialty-chemical-company-china-xd-plastics-announces-first-quarter-2017-financial-results-300454809.html
SOURCE China XD Plastics Company Limited