China XD Plastics Announces Preliminary Results for the Fourth Quarter and Fiscal Year 2009
09 February 2010 - 12:00AM
PR Newswire (US)
HARBIN, China, Feb. 8 /PRNewswire-Asia-FirstCall/ -- China XD
Plastics Company Ltd. ("China XD Plastics" or the "Company"),
(NASDAQ:CXDC), the largest Chinese developer, manufacturer, and
distributor of modified plastics primarily for use in automotive
applications in China, today announced selected estimated unaudited
financial results for the fourth quarter and fiscal year 2009. For
the fourth quarter of 2009, the Company expects its net revenues to
be in the range of approximately $38 million to $41 million,
exceeding the $36 million upper range of its guidance. This
represents approximately 90% to 105% increase from its net revenues
in the fourth quarter of 2008. As previously guided, the Company's
gross margin for the fourth quarter is expected to be in the range
of approximately 23% to 25%. "We are pleased with our strong growth
in the fourth quarter, reflecting the strong fundamentals of our
business model," said Mr. Jie Han, Chairman and CEO of China XD
Plastics. "I am also pleased to announce that, during the fourth
quarter of 2009, we have completed the installation of an
additional 12 automatic production lines funded by the private
placement in December 2009. With additional capacity of at least
30,000 tons, we are well positioned to continue our rapid growth in
2010 to keep up with the rising demand for automotive plastics from
the Chinese market. As we move into 2010, we expect to strengthen
our operating cash flows over the fourth quarter of 2009 levels
which will greatly enhance our cash position to support our growth
in the quarters ahead." The Company believes it is on track to
exceed its full year 2009 targeted total net revenues of between
$110 million and $130 million. These selected estimated results are
subject to the Company's normal, quarter-end closing procedures,
the Company's actual results may differ from its current estimates.
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 is dedicated to the research and development of modified
plastics, and benefits from the cooperation with well-known
scientists from prestigious universities in China. As of the end of
December 31, 2009, 145 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 increase the number of certifications; the
Company's ability to introduce new product applications for
automobiles; the effectiveness, profitability, and the
marketability of its products; the Company's ability to
successfully expand its production capacity; 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: +86-451-84346600
(China) Email: 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: Web: http://www.ccgirasia.com/
DATASOURCE: China XD Plastics Company Ltd. CONTACT: Taylor Zhang,
CFO, +1-212-747-1118 (New York), or Allan Lao, IR Director,
+86-451-84346600 (China), , both of China XD Plastics Company Ltd.;
Crocker Coulson, President, +1-646-213-1915 (New York), or Ed Job,
CFA, +1-646-213-1914 (New York), , both of CCG Investor Relations
Inc. Web site: http://www.chinaxd.net/
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