HARBIN, China, Nov 9, 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 third quarter ended
September 30, 2015.
Third Quarter 2015 Financial
Highlights
- Revenues were $239.1 million, a
decrease of 24.3% YoY
- Gross profit was $29.3 million, a
decrease of 55.2% YoY
- Gross profit margin was 12.3%, compared to 20.7% in the third
quarter of 2014
- Net income was $6.0 million,
compared to $43.2 million in the
third quarter of 2014
- Total volume shipped was 81,663 metric tons, down 14.2% from
95,204 metric tons in the third quarter of 2014
"We experienced a challenging first nine months of 2015 amidst
slowing conditions in China's
domestic automotive market," said Jie
Han, Chairman and Chief Executive Officer. "Vehicle sales in
China grew by only 0.31% in the
first nine months of 2015, the slowest rate in 24 years due to the
economic slowdown in the world's largest car market. Further, both
automakers and auto parts manufacturers in China experienced pricing pressure beginning
in 2014, which has continued to the present. The unusual volatility
of the Chinese stock market since June
2015 has also had a negative impact on consumer sentiment
and the growth in demand."
"As a result of the slowdown in our sector and the resulting
contraction in demand and pricing pressure, plastic fabricators
have been seeking newer products utilizing lower cost raw materials
and more cost-efficient formulations. Since early 2014, the Company
has developed such cost-efficient new products and started to
market higher-end products to customers overseas. As previously
announced, the Company has experienced a delay in its payment
collection with respect to a South Korean customer. To better
manage its financial risk, the Company implemented a ceasing
supply to the customer. While the customer has continued its
payment, the ceasing supply is and will
still be in place until all outstanding balance has been
paid. With mutual agreement on pricing and specifications of
products reached, the Company will resume shipping products to this
customer only after all of the outstanding balance is collected as
contractually agreed.
Our expansion plans in Southwest
China affords us closer proximity to certain key customers
and higher margin manufacturers. Despite the recent rainy season,
the Sichuan facility construction is on schedule and
expected to complete trial run by mid-2016. We are seeing
increasing demand for our products from this region, since
Southwest China is rapidly
becoming a major auto-making hub and a center for high speed rail,
shipping and aviation. While we expect automotive applications to
continue to be our core business, the new facility will include
precision equipment that will facilitate product deployment into
additional high growth verticals."
"Our new facility in Dubai
contains an array of specialized high margin products and serves as
a gateway to the Middle East and
Europe. The majority of the
ground construction is expected to
be completed by the end of 2015."
"We work with our upstream customers in the earliest phases of
the development process which leads to long-term customer
relationships. Our current product emphasis is on
environmentally friendly, light-weighted, and bio-degradable new
materials for new applications in high-speed rail, ships, and
airplanes, further reducing our reliance on the auto sector.
We believe that it is our customer relationships as well as our
pursuit of new and improved products using advanced technologies
that enables us to maintain our premier market positioning. We are
confident that our culture of innovation will enable us to leverage
our expertise and succeed in new markets and adapt to changing
industry conditions in the periods ahead," concluded Chairman and
Chief Executive Officer Jie Han.
Third Quarter 2015 Results
Revenues for the third quarter of 2015 were $239.1 million, representing a year-over-year
decrease of 24.3% from $315.7 million
in the same period of 2014. The year-over-year decrease was
primarily due to a 14.2% decrease in sales volume and a 9.8%
decrease in the average RMB selling price of our products. The
decrease of sales volume was mainly due to us ceasing supply to our Republic of Korea ("ROK") customer while
the decline of the average RMB selling price was caused primarily
by pricing pressure on our products in our domestic market amid a
slowdown in China's economy and
resultant weakness in the auto industry.
Gross profit was $29.3 million in
the third quarter ended September 30,
2015 compared to $65.4 million
in the same period of 2014, representing a decrease of 55.2%. Our
gross margin decreased to 12.3% during the quarter ended
September 30, 2015 from 20.7% during
the same quarter of 2014 primarily due to pricing pressure
resulting from the slowdown of the auto industry in China, the increase of depreciation expenses
as the production facility in Dubai was put into operation, and ceasing supply to our ROK customer to which sales has higher
gross margin. Our average RMB selling price decreased by 9.8% for
the quarter ended September 30, 2015
as compared to the same period in the prior year.
General and administrative expenses were $5.8 million in the third quarter of 2015
compared to $5.4 million in the same
period of 2014, representing an increase of 7.4%, or $0.4 million. This increase is primarily due to
the increase of (i) $0.5 million of
salary and benefit due to the increase in the number of management
staff; (ii) $0.4 million of travel
expenses in connection with our business expansion; and (iii)
$0.5 million of other miscellaneous
expenses; this was partially offset by (iv) $1.0 million decrease of non-income taxation expense.
Research and development (R&D) expenses were $5.8 million during the quarter ended
September 30, 2015 compared to
$5.1 million during the same period
in 2014, an increase of $0.7 million,
or 13.7%. This reflects the Company's efforts to adjust its R&D
activities to focus on new products for industrialized
applications, augmenting our auto sector focus to include other
advanced fields such as ships, airplanes, high-speed rail, 3D
printing materials, biodegradable plastics, medical devices and
other sectors. As of September 30,
2015, we had 198 ongoing research and development projects
as compared to 144 in the second quarter of 2015.
Operating income was $17.3 million
in the third quarter ended September 30,
2015, compared to $54.7
million in the same period of 2014, representing a decrease
of 68.4%, or $37.4 million. The
decrease is primarily due to lower gross profit, higher R&D
expenses and general and administrative expenses.
Net interest expense was $8.3
million for the three-month period ended September 30, 2015, compared to net interest
expense of $8.8 million in the same
period of 2014, primarily due to (i) the decrease in the average
loan interest rate to that of 5.2% for the three months ended
September 30, 2015 compared to 5.5%
for the three months ended September 30,
2014, and (ii) the decrease of average balance of short-term
and long-term loans in the amount of $368.0
million for the three months ended September 30, 2015 compared to $431.0 million of the prior year.
The effective income tax rate for the three-month periods ended
September 30, 2015 and 2014 was 35.5%
and 9.5%, respectively. The increase of effective income tax rate
was mainly due to (i) lowered profit
contribution from AL Composites, an income tax exempt subsidiary,
to 27.3% during the three-month period ended September 30, 2015, compared to 73.6% a
year ago, and (ii) the income tax effect
of an increase of US$2.3 million
non-deductible expenses.
Net income was $6.0 million for
the third quarter of 2015 compared to $43.2
million for the same period of 2014, representing a decrease
of $37.2 million or 86.1%. Basic and
diluted earnings per share for the third quarter of 2015 were both
$0.09 compared to $0.66 per basic share and $0.62 per diluted share in the third quarter of
2014.
The average number of shares used in the computation of basic
and diluted earnings per share for the three months ended
September 30, 2015 were both 49.3
million compared to 49.1 million and 49.3 million in the prior year
period.
EBITDA was $26.9 million for the
third quarter of 2015, a decrease of 58.2% from EBITDA of
$64.3 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.
Financial Condition
As of September 30, 2015, the
Company had $51.1 million in cash and
cash equivalents, $44.2 million in
restricted cash, $192.3 million in
time deposits with commercial banks, $342.5
million in working capital and a current ratio of 1.6 times.
The Company's stockholders' equity was $566.4 million as of September 30, 2015 as compared to $525.4 million as of December 31, 2014.
Inventories were $293.2 million as
of the third quarter of 2015, an increase of 17.4% compared with
that of December 31, 2014. This
was attributable to (i) the opportunistic purchase of lower cost
raw materials due to decreased crude oil prices following the end
of 2014, and (ii) the strategy to stock additional inventory so as
to enable the timely shipping of products to customers in farther
locations such as Southwest China,
South China and Central
China.
The Company's aggregate short-term bank loans, long-term bank
loans and notes payable increased by 25.1% in the third quarter of
2015 compared with that of December 31,
2014 as we further utilized our existing lines of credit
within the constraints of maintaining a manageable debt level. We
define a manageable debt level as the aggregate sum of short-term
bank loans, long-term bank loans and notes payable over total
assets. Accounts payable and bills payable increased by 36.1% as a
result of more purchases made by the Company because of the lower
purchase price of the raw materials and its strategy to stock up
inventory. As of September 30,
2015, notes payable was $148.8
million relating to the 11.75% guaranteed senior notes due
in 2019, net of discount.
Business Outlook and Guidance
The deceleration of China's
economy and its contractionary effect on its domestic auto industry
has increased pricing and sales pressure on China's auto industry's upstream suppliers. In
particular, plastic fabricators are seeking new products that
utilize lower cost raw materials and more cost-efficient
formulations. As previously disclosed, we instituted the ceasing supply to the ROK
customer. The combination of these factors resulted in a 14.2%
contraction of our sales volume to 81,663 metric tons from 95,204
metric tons in the year-ago quarter. Despite this contraction
in customer demand from overseas,
the pricing of the majority of our existing products has remained
relatively stable. However, our newly launched products have
a relatively lower average selling price which has lowered our
total average selling price in response to reduced customer
demand.
While the market environment for the automobile sector will
likely be challenging for the rest of 2015, we expect sales and profit in the last quarter of 2015 to
improve sequentially with greater
contribution from domestic businesses due to the newly
issued auto sales tax reduction by the government and our proactive
pricing tactics and cost management procedures. In anticipation of the coming 2016, the Company has adapted to
changing market dynamics by better allocating our current
production capacity, reducing
concentration in the China's auto market, and diversifying our
product portfolio to include new higher-end verticals.
Despite the slowdown in
China's economy and its auto
supply chain, the change in our
overseas product mix and the delay in our payment collection with
respect to one of our South Korean
customers, and due to our strong
customer relationships, strategic market positioning and visibility
into current and new business, we reiterate our September guidance and expect
full-year 2015 sales to be in the $900
million to $1 billion range, and expect net income to be in
the $80 million to $100 million
range. This financial forecast reflects the Company's business
outlook for the remainder of fiscal 2015. It makes certain
assumptions about the impact of crude oil prices on polymer
composite materials for the remainder of 2015 and makes assumptions
about exchange rates and interest expense associated with both its
long and short-term debt.
Conference Call
China XD Plastics' management will host a conference call on
November 9, 2015 at 8:30 am (U.S. Eastern Time) / 9:30 pm (China Standard Time) to discuss the
third quarter financial results. The earnings conference call can
be accessed by calling +1-855-298-3404 (for callers in the U.S.),
+86-4001-200-539 (for Mainland China callers), +852-5808-3202 (for
Hong Kong callers) or +65 3157
9230 (for Singapore callers) and
entering the pass code 3889316.
A recording of the conference call will be available through
November 16, 2015, by calling
+1-866-846-0868 (for callers in the U.S.) and entering the pass
code 3889316.
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, one of China's leading specialty chemical companies,
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 September 30, 2015, 350 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 revenues for performance in fiscal in
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's financial guidance is subject to
revision based on changing market conditions at any time. 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
Grayling
Vivian Chen
Managing Director
Email: vivian.chen@grayling.com
-Financial Tables Follow-
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
September
30,
2015
|
|
|
December
31,
2014
|
|
|
|
US$
|
|
|
US$
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
51,096,130
|
|
|
|
45,456,612
|
|
Restricted
cash
|
|
|
44,173,850
|
|
|
|
12,545,772
|
|
Time
deposits
|
|
|
192,346,947
|
|
|
|
238,532,702
|
|
Accounts receivable,
net
|
|
|
246,557,049
|
|
|
|
203,998,138
|
|
Amounts due
from a related party
|
|
|
-
|
|
|
|
220,262
|
|
Inventories
|
|
|
293,185,043
|
|
|
|
249,797,244
|
|
Prepaid expenses and
other current assets
|
|
|
78,510,277
|
|
|
|
11,253,828
|
|
Total current
assets
|
|
|
905,869,296
|
|
|
|
761,804,558
|
|
Property, plant and
equipment, net
|
|
|
315,057,485
|
|
|
|
318,324,600
|
|
Land use rights,
net
|
|
|
25,037,517
|
|
|
|
11,896,542
|
|
Prepayments to
equipment and construction suppliers
|
|
|
288,059,709
|
|
|
|
182,259,578
|
|
Other non-current
assets
|
|
|
30,699,136
|
|
|
|
25,499,744
|
|
Total
assets
|
|
|
1,564,723,143
|
|
|
|
1,299,785,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES,
REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS'
EQUITY
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Short-term bank
loans, including current portion of long-term bank loans
|
|
|
265,754,058
|
|
|
|
99,735,422
|
|
Bills
payable
|
|
|
44,142,075
|
|
|
|
43,389,928
|
|
Accounts
payable
|
|
|
221,909,111
|
|
|
|
152,073,014
|
|
Amounts due to
related parties
|
|
|
319,681
|
|
|
|
-
|
|
Income taxes
payable
|
|
|
4,155,317
|
|
|
|
3,269,115
|
|
Accrued expenses and
other current liabilities
|
|
|
27,172,856
|
|
|
|
24,484,583
|
|
Total
current liabilities
|
|
|
563,453,098
|
|
|
|
322,952,062
|
|
Long-term bank loans,
excluding current portion
|
|
|
113,915,038
|
|
|
|
174,274,446
|
|
Notes
payable
|
|
|
148,820,175
|
|
|
|
148,617,057
|
|
Income taxes
payable
|
|
|
18,846,254
|
|
|
|
14,025,825
|
|
Deferred income tax
liabilities
|
|
|
14,808,266
|
|
|
|
16,951,551
|
|
Deferred
income
|
|
|
40,887,465
|
|
|
|
-
|
|
Total
liabilities
|
|
|
900,730,296
|
|
|
|
676,820,941
|
|
|
|
|
|
|
|
|
|
|
Redeemable Series
D convertible preferred stock
|
|
|
97,576,465
|
|
|
|
97,576,465
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Series B preferred
stock
|
|
|
100
|
|
|
|
100
|
|
Common stock,
US$0.0001 par value, 500,000,000 shares authorized,
49,344,284 shares and 49,172,796 shares issued, 49,323,284 shares
and
49,151,796 shares outstanding as of September 30, 2015 and
December
31, 2014, respectively
|
|
|
4,932
|
|
|
|
4,916
|
|
Treasury stock,
21,000 shares at cost
|
|
|
(92,694)
|
|
|
|
(92,694)
|
|
Additional paid-in
capital
|
|
|
81,499,400
|
|
|
|
80,875,787
|
|
Retained
earnings
|
|
|
488,740,833
|
|
|
|
431,823,706
|
|
Accumulated other
comprehensive income (loss)
|
|
|
(3,736,189)
|
|
|
|
12,775,801
|
|
Total stockholders'
equity
|
|
|
566,416,382
|
|
|
|
525,387,616
|
|
Commitments and
contingencies
|
|
|
-
|
|
|
|
-
|
|
Total liabilities,
redeemable convertible preferred stock and
stockholders' equity
|
|
|
1,564,723,143
|
|
|
|
1,299,785,022
|
|
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(LOSS)
|
|
|
Three-Month Period
Ended
September 30,
|
|
|
Nine-Month Period
Ended
September 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
239,101,063
|
|
|
|
315,746,209
|
|
|
|
726,440,200
|
|
|
|
803,535,879
|
|
Cost of
revenues
|
|
|
(209,776,434)
|
|
|
|
(250,378,605)
|
|
|
|
(596,980,399)
|
|
|
|
(639,219,994)
|
|
Gross
profit
|
|
|
29,324,629
|
|
|
|
65,367,604
|
|
|
|
129,459,801
|
|
|
|
164,315,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
(356,417)
|
|
|
|
(177,287)
|
|
|
|
(1,091,278)
|
|
|
|
(435,240)
|
|
General and
administrative expenses
|
|
|
(5,763,886)
|
|
|
|
(5,413,088)
|
|
|
|
(17,320,676)
|
|
|
|
(13,762,596)
|
|
Research and
development expenses
|
|
|
(5,831,192)
|
|
|
|
(5,081,833)
|
|
|
|
(18,304,365)
|
|
|
|
(27,068,448)
|
|
Total operating
expenses
|
|
|
(11,951,495)
|
|
|
|
(10,672,208)
|
|
|
|
(36,716,319)
|
|
|
|
(41,266,284)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
17,373,134
|
|
|
|
54,695,396
|
|
|
|
92,743,482
|
|
|
|
123,049,601
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
1,956,630
|
|
|
|
2,058,843
|
|
|
|
6,850,992
|
|
|
|
8,548,857
|
|
Interest
expense
|
|
|
(10,323,671)
|
|
|
|
(10,865,335)
|
|
|
|
(31,991,319)
|
|
|
|
(31,059,573)
|
|
Foreign currency
exchange losses
|
|
|
(1,261,404)
|
|
|
|
(120,435)
|
|
|
|
(1,026,809)
|
|
|
|
(193,146)
|
|
Gains (losses) on
foreign currency forward
contracts
|
|
|
-
|
|
|
|
309,999
|
|
|
|
657,390
|
|
|
|
(624,766)
|
|
Change in fair value
of warrants liability
|
|
|
-
|
|
|
|
1,594,936
|
|
|
|
-
|
|
|
|
526,191
|
|
Government
grant
|
|
|
1,547,381
|
|
|
|
-
|
|
|
|
1,552,195
|
|
|
|
1,324,213
|
|
Total non-operating
expense, net
|
|
|
(8,081,064)
|
|
|
|
(7,021,992)
|
|
|
|
(23,957,551)
|
|
|
|
(21,478,224)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
9,292,070
|
|
|
|
47,673,404
|
|
|
|
68,785,931
|
|
|
|
101,571,377
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
(3,257,572)
|
|
|
|
(4,515,418)
|
|
|
|
(11,868,804)
|
|
|
|
(16,580,680)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
6,034,498
|
|
|
|
43,157,986
|
|
|
|
56,917,127
|
|
|
|
84,990,697
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common stock
|
|
|
0.09
|
|
|
|
0.66
|
|
|
|
0.87
|
|
|
|
1.30
|
|
Diluted earnings per
common stock
|
|
|
0.09
|
|
|
|
0.62
|
|
|
|
0.87
|
|
|
|
1.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
|
6,034,498
|
|
|
|
43,157,986
|
|
|
|
56,917,127
|
|
|
|
84,990,697
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of nil
income taxes
|
|
|
(15,730,269)
|
|
|
|
6,981,015
|
|
|
|
(16,511,990)
|
|
|
|
(5,861,188)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss)
|
|
|
(9,695,771)
|
|
|
|
50,139,001
|
|
|
|
40,405,137
|
|
|
|
79,129,509
|
|
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
Nine-Month Period
Ended
September 30,
|
|
|
|
2015
|
|
|
2014
|
|
|
|
US$
|
|
|
US$
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
|
|
1,388,960
|
|
|
|
64,066,706
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Proceeds from
maturity of time deposits
|
|
|
346,827,273
|
|
|
|
530,549,654
|
|
Purchase of time
deposits
|
|
|
(306,089,846)
|
|
|
|
(475,702,678)
|
|
Purchases of land use
right
|
|
|
(13,888,542)
|
|
|
|
(64,433,870)
|
|
Government grant
related to the construction of Sichuan plant
|
|
|
1,632,986
|
|
|
|
-
|
|
Prepayment for
purchase of property, plant and equipment
|
|
|
(130,141,806)
|
|
|
|
(211,215,764)
|
|
Net cash used in
investing activities
|
|
|
(101,659,935)
|
|
|
|
(220,802,658)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from bank
borrowings
|
|
|
422,179,682
|
|
|
|
574,971,049
|
|
Repayments of bank
borrowings
|
|
|
(280,822,310)
|
|
|
|
(580,584,760)
|
|
Release of restricted
cash
|
|
|
-
|
|
|
|
7,501,176
|
|
Placement of
restricted cash as collateral for bank borrowings
|
|
|
(33,270,497)
|
|
|
|
(20,597,823)
|
|
Proceeds from the
exercise of Series A investor warrants
|
|
|
-
|
|
|
|
596,740
|
|
Proceeds from
issuance of the Notes
|
|
|
-
|
|
|
|
148,396,175
|
|
Payment of issuance
costs of the Notes
|
|
|
-
|
|
|
|
(4,693,152)
|
|
Net cash provided
by financing activities
|
|
|
108,086,875
|
|
|
|
125,589,405
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign
currency exchange rate changes on cash and cash
equivalents
|
|
|
(2,176,382)
|
|
|
|
(1,688,677)
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
|
5,639,518
|
|
|
|
(32,835,224)
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
|
45,456,612
|
|
|
|
95,545,904
|
|
Cash and cash
equivalents at end of period
|
|
|
51,096,130
|
|
|
|
62,710,680
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
Interest
paid
|
|
|
35,698,872
|
|
|
|
27,770,246
|
|
Income taxes
paid
|
|
|
7,378,544
|
|
|
|
26,287,989
|
|
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
|
|
|
31,421,155
|
|
|
|
-
|
|
Government grant
related to the construction of Sichuan plant in the form of
restricted cash
|
|
|
7,879,497
|
|
|
|
-
|
|
Accrual for purchase
of equipment and construction
|
|
|
4,020,089
|
|
|
|
565,027
|
|
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
CHINA XD PLASTICS
COMPANY LIMITED
|
Reconciliation of
Net Income to EBITDA
|
|
Three Months
Ended
|
|
September
30,
|
|
2015
|
2014
|
Net income
|
$6,034,498
|
$43,157,986
|
Interest
expense
|
10,323,671
|
10,865,335
|
Income tax
expense
|
3,257,572
|
4,515,418
|
Depreciation and amortization expense
|
7,330,498
|
5,788,924
|
EBITDA
|
26,946,239
|
64,327,663
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/china-xd-plastics-announces-third-quarter-2015-financial-results-300174689.html
SOURCE China XD Plastics Company Limited