HARBIN, China, Nov. 9, 2016 /PRNewswire/ --
- Revenue of $332 million,
up 38.8% YoY -
- Net Income of $20 million, up 236.7% YoY -
-
Reiterates Fiscal 2016 Guidance of Revenue between $1.0 - $1.1 billion and
Net Income between $100 - $110
million -
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, 2016.
Third Quarter 2016 Financial Highlights
- Revenue was $331.8 million, an increase of 38.8% YoY
- Gross profit was $69.6 million, an increase of 137.5%
YoY
- Gross margin of 21.0%, an increase of 870 basis points YoY
- Net income was $20.2 million, an increase of 236.7%
YoY
- EBITDA was $46.1 million, an
increase of 71.4% YoY
- Total volume shipped was 108,633 metric tons, up 33.0% YoY
- Book value per share was $9.54 as of the
end of the third quarter 2016
"We are pleased by the financial results of the third quarter
which benefited from a continued improvement in macroeconomic
conditions in the auto industry, our increased production capacity
and an escalation in international sales," 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 by 14.7% for the
first nine months of 2016 as compared to first nine months of 2015.
An improvement in macroeconomic conditions through the first nine
months of 2016 has resulted in improved business conditions and
eased pricing pressures which have resulted in stronger company
profit margins."
Mr. Han continued, "Key elements of our growth plan include
elevating the sales of our high-end products, optimizing our
increased production capacity, and increasing our overseas sales in
order to reduce our concentration in the Chinese market. We are
beginning to see the results of this strategy as we increased
overseas sales significantly from the overseas market in the third
quarter as compared to the same period last year. As anticipated,
the steady recovery in operating conditions coupled with the
focused execution of our strategic plan has resulted in a marked
improvement in key financial metrics such as sales volume, average
selling price and profitability margins."
"The commissioning of our Sichuan campus in the current quarter is an
important milestone as it will ultimately add 300,000 metric tons
of annual production to our domestic capacity, for a total domestic
capacity of 690,000 metric tons. The Sichuan facility substantially expands the
footprint of our auto business in China and while we expect that automotive
applications will continue to be our core business, the new
facility includes precision equipment which will enable us to
diversify our product platform into such high-growth verticals as
ships, high-speed rail, airplanes, bio-degradable materials,
medical-grade materials and food packaging which will propel the
company's growth."
"Our Sichuan plant has been designed with the highest production
specifications with state-of-the-art equipment and extends our
geographical reach beyond our established Northeast base in
Harbin as the China's Southwest is rapidly becoming an
important economic region. We anticipate having production capacity
of 60,000 metric tons as operational by year-end 2016," continued
Mr. Han.
"In addition to our new Sichuan
campus, our manufacturing facility in Dubai will also extend our specialized
high-tech products into important new markets. We are planning to
complete Phase 2 of our build-out by the end of this year which
will constitute installing an additional 14,000 metric tons of
annual production capacity, bringing total production capacity in
Dubai to 16,500 metric tons. The
Dubai facility will target
high-end products for the overseas market and will ultimately
enable more active inroads into the markets of Europe, the Middle
East and other international regions."
"We view our ability to innovate combined with our utilization
of state-of-the art equipment as a technical and competitive edge
in the marketplace. China XD is committed to creating value for all
of our stakeholders through our commitment and dedication to our
customers. We remain confident in our business model and anticipate
that our expansion in Sichuan and
the completion of our Dubai plant
this year will result in improved market positioning, a diversified
base of customers, higher-end sales and an expansion into new
verticals. We anticipate that the year's steady improvement in our
sector will continue into 2017 and we reiterate our current
financial guidance at this time," Mr. Han concluded.
Third Quarter 2016 Results
Revenues were $331.8 million in
the third quarter ended September 30,
2016, an increase of $92.7
million or 38.8% compared to $239.1
million in the same period of last year. This was due to a
33.0% increase in sales volume and a 10.0% increase in the average
RMB selling price of our products, offset somewhat by a 6.0%
negative impact from the exchange rate due to a weakening RMB
against the US dollar. Overseas sales was $37.0 million in the third quarter of
2016 compared to $7.3 million in
the same period of 2015 due to sales overseas.
Premium products (PA66, PA6, Plastic Alloy, PLA, POM and PPO) in
total accounted for 82.8% of revenues, compared to 77.6% 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 $69.6 million in
the third quarter ended September 30,
2016, compared to $29.3
million in the same period of 2015, an increase of
$40.3 million or 137.5%. Gross margin
increased to 21.0% during the quarter ended September 30, 2016 from 12.3% 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 $8.4 million in the quarter ended September 30, 2016, compared to $5.8 million in the same period of 2015, an
increase of $2.6 million or 44.8%.
This increase was primarily due to the increases in salary due to
the increase in the number of management and general staffs
from supporting departments, and expenses associated with the
commissioning ceremony in the current quarter of its new
Sichuan manufacturing facility
and rental expenses.
Research and development (R&D) expenses were $7.9 million in the quarter ended September 30, 2016 compared with $5.8 million during the same period in 2015, an
increase of $2.1 million or 36.2%.
This increase reflected our enhanced efforts in research and
development 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 September 30, 2016, we were engaged in 196
ongoing R&D projects.
Total operating income was $53.1
million in the third quarter ended September 30, 2016 compared to $17.3 million in the same period of 2015, an
increase of $35.8 million or 206.9%.
This increase is primarily due to a higher gross margin, partially
offset by the higher general and administrative and research and
development expenses.
Net interest expense was $9.7
million in the three-month period ended September 30, 2016, compared to net interest
expense of $8.3 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 to 1.4% for the three month period ended September 30, 2016 compared to 2.5% for the same
period of 2015, which was partially offset by an increase in the
average deposit balance in the amount of $355.8 million
for the three months ended September 30,
2016 compared to $306.8
million for the same period of 2015; and (ii) the increase
of interest expense which was caused by the increase of short-term
and long-term loans in the amount of $666.3
million for the three months ended September 30, 2016 as compared to $368.0 million of prior year, which was partially
offset by the decrease of the average interest rate to 4.5% for the
three months ended September 30, 2016
as compared to 5.2% for the three months ended September 30, 2015.
Loss on debt extinguishment resulted in a charge of $19.0
million as the Company fully redeemed all of its
$150 million principal amount 11.75%
guaranteed senior notes due 2019 plus the applicable premium and
unpaid interest up to the redemption date of August 29, 2016.
The effective income tax rate for the three-month periods ended
September 30, 2016 and 2015 was 20.8%
and 35.5%, respectively. The decrease in the current quarter
was primarily due to the increase of $17.4
million profits generated in tax-exempted Dubai Composites
for the three-month ended September 30,
2016 as compared to the same quarter of 2015. This was
partially offset by a $19.0 million
loss on the Company's redemption of its $150
million principal amount 11.75% guaranteed senior notes due
2019 in the third quarter which is exempted from income taxes. The
effective income tax rate for the three-month period ended
September 30, 2016 differs from the
PRC statutory income tax rate of 25% primarily due to the preferential tax rate of Sichuan Xinda, the effect of tax
rate differential on entities not subject to PRC income tax, super
deduction of R&D expense and partially offset by the effect of
non-deductible expenses.
Net income was $20.2 million in
the third quarter ended September 30,
2016, compared to $6.0 million
for the same period of 2015, an increase of $14.2 million or 236.7%. Basic and diluted
earnings per share were $0.31,
compared to $0.09 per basic and
diluted share in the third quarter of 2015.
The average number of shares used in the computation of basic
and diluted earnings per share for the three months ended
September 30, 2016 was 49.5 million
compared to 49.3 million in the prior year period.
Earnings before interest, tax, depreciation and amortization
(EBITDA) was $46.1 million for the
third quarter of 2016 compared to EBITDA of $26.9 million in the same period of 2015,
representing an increase of $19.2
million or 71.4%. 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, 2016, the
Company had $100.1 million in cash
and cash equivalents, $130.4 million
in time deposits with commercial banks, $151.3 million in working capital (current assets
minus current liabilities) and a current ratio (current assets
divided by current liabilities) of 1.17. Stockholders' equity as of
September 30, 2016 was $625.1 million, an increase of 8.1% as compared
to $578.0 million as of December 31, 2015.
Inventories increased by 40.9% 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 for increasing demand
from the Sichuan plant. Property, plant and equipment
net increased by 43.3% from fiscal year end 2015 due to the
delivery of equipment at Dubai
Xinda at the beginning of 2016.
On August 22, 2016, a wholly owned subsidiary of the
Company, Xinda Holding (HK) Company Limited, entered into an
agreement for a loan facility in an aggregate amount of $180
million with a consortium of banks and financial institutions
led by Standard Chartered Bank (Hong
Kong) Limited. Pursuant to the agreement, the proceeds of
the loan facility shall be applied primarily to the previously
approved redemption of the $150
million principal amount 11.75% guaranteed senior notes due
2019 (the "Senior Notes"). On August 29,
2016, the Company fully redeemed the Senior Notes. The
aggregate amount paid was $166.6
million consisting of $150
million of principal, the applicable premium of $15.4 million and accrued and unpaid interest of
$1.2 million to the redemption date.
This resulted in a one-time non-operating charge of $19.0 million as a loss on debt extinguishment in
the third quarter of 2016.
The aggregate short-term and long-term
bank loans increased by 34.2% from fiscal year end 2015 as the
result of utilization of existing lines of credit, among which
proceeds of $180 million bank loans
with a consortium of banks and financial institutions were used to
redeem the Senior Notes. 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.
On June 28,
2016, AL Composite Materials FZE ("AL Composites"), a
subsidiary of the Company, signed a purchase agreement pertaining
to approximately 20,206 square meters of property, and on
September 21, 2016, AL Composites
signed a second purchase agreement pertaining to approximately
22,324 square meters of property. Both properties are located in
JAFZA (the Jebel Ali Free Economic Zone) in Dubai, UAE. The properties include a warehouse
and an office building.
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.
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 the continued 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 started
production in the second half of 2016. It also assumes a relatively
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 view of its business outlook for the
remainder of fiscal 2016 and is subject to revision based on
changing market conditions at any time. The Company currently plans to provide financial
guidance for fiscal 2017 later this year.
Conference Call
China XD Plastics' management will host a conference call at
9:00 a.m. ET on Wednesday, November 9, 2016, to discuss its third
quarter 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 2323876.
A recording of the conference call will be available through
November 16, 2016, by calling +1
(866) 846-0868 (for callers in the U.S.) and entering pass code
2323876.
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 September 30, 2016, 390 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: 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
|
|
|
|
|
|
|
|
|
|
September
30,
2016
|
|
|
December
31,
2015
|
|
|
|
US$
|
|
|
US$
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
100,144,999
|
|
|
|
119,928,485
|
|
Restricted
cash
|
|
|
70,490,099
|
|
|
|
50,852,327
|
|
Time
deposits
|
|
|
130,432,178
|
|
|
|
237,626,806
|
|
Accounts receivable,
net
|
|
|
272,762,337
|
|
|
|
234,542,739
|
|
Amounts due
from a related party
|
|
|
-
|
|
|
|
244,836
|
|
Inventories
|
|
|
415,254,822
|
|
|
|
294,665,195
|
|
Prepaid expenses and
other current assets
|
|
|
38,697,013
|
|
|
|
15,675,848
|
|
Total current
assets
|
|
|
1,027,781,448
|
|
|
|
953,536,236
|
|
Property, plant and
equipment, net
|
|
|
819,285,111
|
|
|
|
571,746,507
|
|
Land use rights,
net
|
|
|
23,527,451
|
|
|
|
24,506,837
|
|
Prepayments to
equipment and construction suppliers
|
|
|
85,252,121
|
|
|
|
183,226,006
|
|
Other non-current
assets
|
|
|
12,509,168
|
|
|
|
18,966,622
|
|
Total
assets
|
|
|
1,968,355,299
|
|
|
|
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
|
|
|
466,402,042
|
|
|
|
284,339,089
|
|
Bills
payable
|
|
|
61,916,200
|
|
|
|
33,522,287
|
|
Accounts
payable
|
|
|
181,189,344
|
|
|
|
257,417,000
|
|
Amounts due to
related parties
|
|
|
310,167
|
|
|
|
8,439
|
|
Income taxes
payable
|
|
|
3,315,801
|
|
|
|
6,881,946
|
|
Accrued expenses and
other current liabilities
|
|
|
163,318,425
|
|
|
|
140,988,712
|
|
Total
current liabilities
|
|
|
876,451,979
|
|
|
|
723,157,473
|
|
Long-term bank loans,
excluding current portion
|
|
|
254,901,192
|
|
|
|
107,481,709
|
|
Notes
payable
|
|
|
-
|
|
|
|
145,634,996
|
|
Deferred
income
|
|
|
71,171,033
|
|
|
|
62,039,050
|
|
Other non-current
liabilities
|
|
|
43,120,367
|
|
|
|
38,046,917
|
|
Total
liabilities
|
|
|
1,245,644,571
|
|
|
|
1,076,360,145
|
|
|
|
|
|
|
|
|
|
|
Redeemable Series
D convertible preferred stock (redemption amount of US$197,775,400
and US$184,461,800 as of September 30, 2016 and December 31,
2015)
|
|
|
97,576,465
|
|
|
|
97,576,465
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Series B preferred
stock
|
|
|
100
|
|
|
|
100
|
|
Common stock, US$0.0001 par value, 500,000,000 shares authorized, 49,577,541
shares and 49,344,284 shares issued, 49,556,541 shares and
49,323,284 shares outstanding as of September 30, 2016
and December 31, 2015, respectively
|
|
|
4,956
|
|
|
|
4,933
|
|
Treasury stock,
21,000 shares at cost
|
|
|
(92,694)
|
|
|
|
(92,694)
|
|
Additional paid-in
capital
|
|
|
82,585,871
|
|
|
|
81,919,932
|
|
Retained
earnings
|
|
|
580,445,916
|
|
|
|
515,555,985
|
|
Accumulated other
comprehensive loss
|
|
|
(37,809,886)
|
|
|
|
(19,342,658)
|
|
Total stockholders'
equity
|
|
|
625,134,263
|
|
|
|
578,045,598
|
|
Commitments and
contingencies
|
|
|
-
|
|
|
|
-
|
|
Total liabilities,
redeemable convertible preferred stock and stockholders'
equity
|
|
|
1,968,355,299
|
|
|
|
1,751,982,208
|
|
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
|
|
|
Three Month Period Ended
September 30,
|
|
|
Nine Month Period Ended
September 30,
|
|
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
331,847,567
|
|
|
|
239,101,063
|
|
|
|
824,017,387
|
|
|
|
726,440,200
|
|
Cost of
revenues
|
|
|
(262,206,936)
|
|
|
|
(209,776,434)
|
|
|
|
(659,218,624)
|
|
|
|
(596,980,399)
|
|
Gross
profit
|
|
|
69,640,631
|
|
|
|
29,324,629
|
|
|
|
164,798,763
|
|
|
|
129,459,801
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
(338,466)
|
|
|
|
(356,417)
|
|
|
|
(1,005,640)
|
|
|
|
(1,091,278)
|
|
General and administrative expenses
|
|
|
(8,369,224)
|
|
|
|
(5,763,886)
|
|
|
|
(20,034,920)
|
|
|
|
(17,320,676)
|
|
Research and
development expenses
|
|
|
(7,864,732)
|
|
|
|
(5,831,192)
|
|
|
|
(18,681,018)
|
|
|
|
(18,304,365)
|
|
Total operating
expenses
|
|
|
(16,572,422)
|
|
|
|
(11,951,495)
|
|
|
|
(39,721,578)
|
|
|
|
(36,716,319)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
53,068,209
|
|
|
|
17,373,134
|
|
|
|
125,077,185
|
|
|
|
92,743,482
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
1,242,484
|
|
|
|
1,956,630
|
|
|
|
4,472,475
|
|
|
|
6,850,992
|
|
Interest
expense
|
|
|
(10,870,903)
|
|
|
|
(10,323,671)
|
|
|
|
(32,403,784)
|
|
|
|
(31,991,319)
|
|
Foreign currency
exchange gains (losses)
|
|
|
(14,902)
|
|
|
|
(1,261,404)
|
|
|
|
356,672
|
|
|
|
(1,026,809)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on debt
extinguishment
|
|
|
(18,963,834)
|
|
|
|
-
|
|
|
|
(18,963,834)
|
|
|
|
-
|
|
Gains on foreign
currency forward contracts
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
657,390
|
|
Government
grant
|
|
|
1,011,870
|
|
|
|
1,547,381
|
|
|
|
1,438,589
|
|
|
|
1,552,195
|
|
Total non-operating
expense, net
|
|
|
(27,595,285)
|
|
|
|
(8,081,064)
|
|
|
|
(45,099,882)
|
|
|
|
(23,957,551)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
25,472,924
|
|
|
|
9,292,070
|
|
|
|
79,977,303
|
|
|
|
68,785,931
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
(5,296,118)
|
|
|
|
(3,257,572)
|
|
|
|
(15,087,372)
|
|
|
|
(11,868,804)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
20,176,806
|
|
|
|
6,034,498
|
|
|
|
64,889,931
|
|
|
|
56,917,127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
0.31
|
|
|
|
0.09
|
|
|
|
0.98
|
|
|
|
0.87
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
|
20,176,806
|
|
|
|
6,034,498
|
|
|
|
64,889,931
|
|
|
|
56,917,127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of nil income taxes
|
|
|
(4,953,926)
|
|
|
|
(15,730,269)
|
|
|
|
(18,467,228)
|
|
|
|
(16,511,990)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
|
15,222,880
|
|
|
|
(9,695,771)
|
|
|
|
46,422,703
|
|
|
|
40,405,137
|
|
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
Nine-Month Period
Ended
September
30,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
US$
|
|
|
US$
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net cash provided
by (used in) operating activities
|
|
|
(145,259,464)
|
|
|
|
1,388,960
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Proceeds from
maturity of time deposits
|
|
|
389,418,762
|
|
|
|
346,827,273
|
|
Purchase of time
deposits
|
|
|
(286,739,987)
|
|
|
|
(306,089,846)
|
|
Purchase of
land use rights
|
|
|
-
|
|
|
|
(13,888,542)
|
|
Purchase of and
deposits for property, plant and equipment
|
|
|
(140,826,457)
|
|
|
|
(130,141,806)
|
|
Government grant
related to the construction of Sichuan plant
|
|
|
10,117,282
|
|
|
|
1,632,986
|
|
Net cash used in
investing activities
|
|
|
(28,030,400)
|
|
|
|
(101,659,935)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from bank
borrowings
|
|
|
762,880,805
|
|
|
|
422,179,682
|
|
Repayments of bank
borrowings
|
|
|
(424,933,705)
|
|
|
|
(280,822,310)
|
|
Redemption of notes
payable
|
|
|
(165,366,000)
|
|
|
|
-
|
|
Release of restricted
cash as collateral for bank borrowings
|
|
|
46,891,495
|
|
|
|
-
|
|
Placement of
restricted cash as collateral for bank borrowings
|
|
|
(64,058,775)
|
|
|
|
(33,270,497)
|
|
Net cash provided
by financing activities
|
|
|
155,413,820
|
|
|
|
108,086,875
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign
currency exchange rate changes on cash and cash
equivalents
|
|
|
(1,907,442)
|
|
|
|
(2,176,382)
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
|
(19,783,486)
|
|
|
|
5,639,518
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
|
119,928,485
|
|
|
|
45,456,612
|
|
Cash and cash
equivalents at end of period
|
|
|
100,144,999
|
|
|
|
51,096,130
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
Interest paid, net of
capitalized interest
|
|
|
37,645,235
|
|
|
|
35,698,872
|
|
Income taxes
paid
|
|
|
14,880,461
|
|
|
|
7,378,544
|
|
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 included in accrued expenses and
other current liabilities
|
|
|
97,201,202
|
|
|
|
4,020,089
|
|
CHINA XD PLASTICS
COMPANY LIMITED
|
Reconciliation of Net
Income to EBITDA
|
|
|
Three Months
Ended
|
|
September
30
|
|
2016
|
2015
|
|
|
|
Net Income
|
$20,176,806
|
$6,034,498
|
Interest
Expense
|
10,870,903
|
10,323,671
|
Income Tax
Expense
|
5,296,118
|
3,257,572
|
Depreciation and
amortization expense
|
9,710,638
|
7,330,498
|
EBITDA
|
$46,054,465
|
$26,946,239
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/specialty-chemical-company-china-xd-plastics-announces-third-quarter-2016-financial-results-300359757.html
SOURCE China XD Plastics Company Limited