- Revenue of $313.6 million
-
- Net Income of $28.1
million -
- Reiterating Fiscal 2017 Guidance of $1.2 - $1.3 Billion in Revenue, $85.0 - $100.0 Million in Net Income
-
HARBIN, China, Aug. 9, 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 second quarter ended June 30,
2017.
Second Quarter 2017 Financial
Highlights
- Revenue was $313.6 million, an increase of 13.2% YoY
- Gross profit was $63.1 million, an increase of 4.6%
YoY
- Gross margin of 20.1%, a decrease of 17 basis points YoY
- Net income was $28.1 million, a decrease of 15.6% YoY
- EBITDA was $54.7 million, a
decrease of 3.0% YoY
- Total volume shipped was 104,617 metric tons, up 17.0% YoY
"We were able to generate significant top line growth in the
second quarter of 2017 as compared to the same period last year as
the generally positive macroeconomic conditions in our sector
continued from last year," said Jie
Han, Chairman of the Board of Directors and Chief Executive
Officer. "As reported by The China Association of Automobile
Manufacturers, for the first six months of 2017, auto production
increased 4.6% relative to the same period last year, and we
believe that our cutting edge technologies, expanded production
capabilities, new geographical positioning and major new projects
will be able to capitalize on this trend."
Mr. Han continued, "Our strategic initiative to expand our
operations into new growth geographies continued to see significant
revenue contributions from the South
China and the Central China
regions in the second quarter, largely attributable due to the
continued ramp of our new, state-of-the-art Sichuan manufacturing facility. Our
Sichuan facility now has 50
production lines with 216,000 metric tons of annual production
capacity."
"We are very pleased with the recent official signing of
investment agreements with the Management Committee of Harbin
Economic - Technological Development Zone with respect to the
industrial project for 300,000 metric tons of biological composite
materials, the industrial project for upgrading existing equipment
for 100,000 metric tons of engineering plastics and the industrial
project for a 3D printing intelligent manufacture demonstration
factory and a 3D printing display and experience cloud factory.
This follows 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."
"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 our substantial production increase and geographical
expansion via our Sichuan facility
solidifies our core automobile sector business. Further, our
new investment agreements to undertake major expansion projects
will lead to a wider range of product capabilities and further
diversified customer base. In our view, this represents a
further evolution of the company into a multifaceted leading
specialty chemical company that augments our existing capabilities
and enables us to engage numerous new verticals. We believe
that these strategic initiatives form a platform for sustainable
growth for the next several years and well positions us for
opportunities presented by China's
new economy. We are excited by this period of dynamic growth
and this next evolution of the Company." Mr. Han concluded.
Second Quarter 2017 Results
Revenues were $313.6 million for
the second quarter of 2017, compared to $277.1 million for the same period of 2016,
representing an increase of $36.5
million, or 13.2%. The year-over-year increase was primarily
due to 17.0% increase in sales volume and 1.8% increase in the
average RMB selling price of our products.
The increase in revenues in the second 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
166.2% in Central China, 76.7% in
Southwest China, 49.1% in
South China, 22.1% in North China, 7.7% in East China and 5.1% in
Northeast China as compared to the
same period in 2016. Overseas sales resumed in the second
quarter of 2017 and were $33.0
million in the period, compared to $35.7 million in the same period of 2016,
representing a decrease of $2.7
million, or 7.6%. The overseas customer has an outstanding
balance of $65.1 million, of which a
balance of $31.9 million was overdue
as of June 30, 2017. The overseas
customer has made payments of $42.5
million in the first half year of 2017, and we expect to collect the outstanding balance in the third
quarter of 2017.
Premium products (PA66, PA6, Plastic Alloy, PLA, POM and PPO) in
total accounted for 81.4% of revenues in the second quarter of
2017, compared to 80.8% 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) 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, (ii) the
stronger demand for higher-end products as a result of the Chinese
government's promotion for clean energy vehicles, and (iii) the
greater growth potential of advanced modified plastics in luxury
models in China, where
manufacturers tend to use more and higher-end modified
plastics in quantity per vehicle in China.
Gross profit was $63.1 million for
the second quarter of 2017, compared to $60.3 million for the same period of 2016,
representing an increase of $2.8
million, or 4.6%. Gross margin was 20.1% for the
second quarter of 2017, compared to 21.8% 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 $8.8 million for the second quarter of 2017,
compared to $6.6 million for the same
period of 2016, representing an increase of $2.2 million, or 33.3%. This increase was
primarily due to (i) the increases in salary and welfare expenses
resulted from the increase in the number of management and general
staff from supporting departments and in the average salary and
bonus, (ii) the increase of professional fee (iii) the increase of
depreciation and amortization, (iv) the increase of taxation, and
(v) the increase of rental fee.
Research and development (R&D) expenses were $9.5 million for the second quarter of 2017,
compared to $5.9 million for the same
period of 2016, representing an increase of $3.6 million, or 61.0%. 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,
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 devices, and
(iii) an increase in depreciation expenses after R&D equipment
was put into use at Sichuan Xinda Enterprise Group Company Limited
("Sichuan Xinda"). As of June 30,
2017, the number of ongoing research and development
projects was 286.
Operating income was $44.0 million
for the second quarter of 2017, compared to $47.4 million for the same period of 2016,
representing a decrease of $3.4
million, or 7.2%. This decrease was primarily due to higher G&A expenses and
higher R&D expenses.
Net interest expense was $11.0
million for the second quarter of 2017, compared to net
interest expense of $9.0 million for
the same period of 2016, representing an increase of $2.0 million, or 22.2%. This increase was
primarily due to (i) the increase of interest expense due to
the increase of the average short-term and long-term loan balance
in the amount of $849.0 million for
the three-month period ended June 30,
2017 compared to $496.6
million for the same period in 2016, which was partially
offset by the decrease of the weighted loan interest rate of 4.9%
for the three-month period ended June 30,
2017 as compared to 5.2% for the same period of 2016, (ii) a
decrease of interest income resulting from the decrease of the
average interest rate to 1.5% for the three-month period ended
June 30, 2017 compared to 2.4% of the
same period in 2016, and the decrease of the average deposit
balance in the amount of $266.9
million for the three-month period ended June 30, 2017 compared to $409.6 million for the same period of 2016.
Income tax expense was $4.1
million for the second quarter of 2017, representing an
effective income tax rate of 12.8%, compared to income tax expense
of $5.3 million in the same period of
2016, representing an effective income tax rate of 13.6%. The
decrease of effective income tax rate was primarily due to a
greater portion of the profit generated by Sichuan Xinda which
enjoys preferential tax rate and the increase of the super deduction of R&D expense. The
effective income tax rate for the three-month ended June 30, 2017 differs from the PRC statutory
income tax rate of 25% primarily due
to the effect of the tax rate difference on various
subsidiaries not subject to the PRC statutory income tax
rate .
Net income was $28.1 million for
the second quarter of 2017, compared to $33.3 million for the same period of 2016,
representing a decrease of $5.2
million, or 15.6%. Basic and diluted earnings per share in
the current quarter were $0.43,
compared to $0.51 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 $54.7 million for the
second quarter of 2017, compared to $56.4
million for the same period of 2016, representing a decrease
of $1.7 million, or 3.0%. For a
detailed reconciliation of EBITDA, a non-GAAP measure, to its
nearest GAAP equivalent, please see the financial tables at the end
of this release.
Financial Condition
As of June 30, 2017, the Company
had $559.6 million in cash and cash
equivalents, restricted cash and time deposits, an increase of
$103.2 million or 22.6% as compared
to $456.4 million as of December 31, 2016. As of the current
period, working capital was $185.7
million (current assets minus current liabilities) and the
current ratio (current assets divided by current liabilities) was
1.2, equivalent to the current ratio of 1.2 as of December 31, 2016. Stockholders' equity as of
June 30, 2017 was $690.2 million, an increase of $55.9 million or 8.8% as compared to $634.3 million as of December 31, 2016.
Inventories increased by $82.3
million or 29.3% to $363.2
million as of the second 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. The aggregate short-term and long-term bank
loans increased by $143.5 million or
20.7% 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 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 July 21, 2017, the Company
issued a press release announcing the official signing of
investment agreements between its subsidiary, Heilongjiang Xinda
Enterprise Group Company Limited, and the Management Committee of
Harbin Economic - Technological Development Zone with respect to
the industrial project for 300,000 metric tons of biological
composite materials, the industrial project for upgrading existing
equipment for 100,000 metric tons of engineering plastics and the
industrial project for a 3D printing intelligent manufacture
demonstration factory and a 3D printing display and experience
cloud factory. These projects will help the Company to expand
its product mix into bio-based composites, 3D printing
materials and functional masterbatch
materials while maintaining our traditional
petroleum-based materials, paving the path to non-auto applications
and further diversifying the company's business as a key element of
the Company's strategic plan. The total capital expenditures for
the Company will be RMB 4,015 million
(equivalent to be $592.7 million), among which the investment in
fixed assets shall be no less than RMB3,295
million (equivalent to $486.4 million). Both the industrial project
for 300,000 metric tons of biological composite materials and the
industrial project for a 3D printing intelligent manufacturing
demonstration factory and a 3D printing display and experience
cloud factory are expected to be completed by the end of
July 2019. The industrial project for
upgrading existing equipment for 100,000 metric tons of engineering
plastics is expected to be completed by the end of June 2018.
On June 5, 2017, the Company
announced that the special committee of its Board of Directors,
which is composed entirely of independent directors (the "Special
Committee"), has retained Duff & Phelps, LLC and Duff &
Phelps Securities, LLC as the Special Committee's independent
financial advisor, Davis Polk &
Wardwell LLP as its U.S. legal counsel and Brownstein Hyatt Farber Schreck, LLP as its
Nevada legal counsel in connection
with its review and evaluation of the preliminary non-binding
proposal letter dated February 16,
2017 from its Chairman and Chief Executive Officer,
Jie Han ("Mr. Han"), XD. Engineering
Plastics Company Limited, 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 for $5.21 per share of
common stock in cash. The proposal letter states that the
Buyer Consortium will not move forward with the proposed
Transaction unless it is approved by such the 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 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, August 9, 2017, to discuss
its second quarter 2017 financial results. The conference
call can be accessed by dialing +1-844-534-5152 (for callers in the
U.S.), +86-4006-065-845 (for Mainland China callers) or
+852-3008-1527 (for Hong Kong
callers) and entering pass code 2561379.
A recording of the conference call will be available through
August 17, 2017, by calling
+1-888-203-1112 (for callers in the U.S.) and entering pass code
2561379.
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 June 30,
2017, 420 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 prospects of the Company's Harbin facility, and its penetration into
Northeast 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
|
|
|
|
June
30,
|
|
|
December
31,
|
|
|
2017
|
|
|
2016
|
|
|
US$
|
|
|
US$
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
279,825,075
|
|
|
|
168,086,445
|
Restricted
cash
|
|
|
120,145,627
|
|
|
|
103,489,402
|
Time
deposits
|
|
|
159,718,942
|
|
|
|
184,806,112
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
|
151,980,751
|
|
|
|
410,049,559
|
Amounts due from
a related party
|
|
|
-
|
|
|
|
229,624
|
Inventories
|
|
|
363,248,245
|
|
|
|
280,939,008
|
Prepaid expenses and
other current assets
|
|
|
306,549,365
|
|
|
|
125,310,309
|
Total current
assets
|
|
|
1,381,468,005
|
|
|
|
1,272,910,459
|
Property, plant and
equipment, net
|
|
|
826,047,915
|
|
|
|
806,363,692
|
Land use rights,
net
|
|
|
26,043,444
|
|
|
|
22,536,397
|
Long-term prepayments
to equipment and construction suppliers
|
|
|
63,078,310
|
|
|
|
14,167,702
|
Other non-current
assets
|
|
|
616,333
|
|
|
|
10,521,949
|
Total
assets
|
|
|
2,297,254,007
|
|
|
|
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
|
|
|
642,154,361
|
|
|
|
444,757,476
|
Bills
payable
|
|
|
167,860,757
|
|
|
|
148,392,677
|
Accounts
payable
|
|
|
124,016,718
|
|
|
|
320,013,040
|
Amounts due to
related parties
|
|
|
117,742
|
|
|
|
11,548
|
Income taxes
payable
|
|
|
2,080,940
|
|
|
|
897,625
|
Accrued expenses and
other current liabilities
|
|
|
259,555,171
|
|
|
|
119,339,366
|
Total current
liabilities
|
|
|
1,195,785,689
|
|
|
|
1,033,411,732
|
Long-term bank loans,
excluding current portion
|
|
|
195,614,172
|
|
|
|
249,520,615
|
Deferred
income
|
|
|
75,743,684
|
|
|
|
69,311,102
|
Other non-current
liabilities
|
|
|
42,292,640
|
|
|
|
42,420,619
|
Total
liabilities
|
|
|
1,509,436,185
|
|
|
|
1,394,664,068
|
|
|
|
|
|
|
|
|
Redeemable Series
D convertible preferred stock (redemption amount of
US$219,653,000 and US$212,212,300 as of June 30, 2017 and
December
31, 2016, respectively)
|
|
|
97,576,465
|
|
|
|
97,576,465
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Series B preferred
stock
|
|
|
100
|
|
|
|
100
|
Common stock,
US$0.0001 par value, 500,000,000 shares authorized,
49,532,541 shares and 49,532,541 shares issued, 49,511,541
shares and
49,511,541 shares outstanding as of June 30, 2017 and
December 31,
2016, respectively
|
|
|
4,952
|
|
|
|
4,952
|
Treasury stock,
21,000 shares at cost
|
|
|
(92,694)
|
|
|
|
(92,694)
|
Additional paid-in
capital
|
|
|
82,953,450
|
|
|
|
82,606,404
|
Retained
earnings
|
|
|
655,133,716
|
|
|
|
617,168,735
|
Accumulated other
comprehensive loss
|
|
|
(47,758,167)
|
|
|
|
(65,427,831)
|
Total stockholders'
equity
|
|
|
690,241,357
|
|
|
|
634,259,666
|
Commitments and
contingencies
|
|
|
-
|
|
|
|
-
|
Total liabilities,
redeemable convertible preferred stocks and
stockholders' equity
|
|
|
2,297,254,007
|
|
|
|
2,126,500,199
|
See the accompanying notes to
the unaudited condensed consolidated financial statements in the
Company's second quarter 2017 10-Q as filed with the SEC
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
|
|
|
Three-Month Period
Ended June 30,
|
|
|
Six-Month Period
Ended June 30,
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
313,555,663
|
|
|
|
277,139,662
|
|
|
|
551,395,860
|
|
|
|
492,169,820
|
Cost of
revenues
|
|
|
(250,446,461)
|
|
|
|
(216,795,181)
|
|
|
|
(453,514,488)
|
|
|
|
(397,011,688)
|
Gross
profit
|
|
|
63,109,202
|
|
|
|
60,344,481
|
|
|
|
97,881,372
|
|
|
|
95,158,132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
(705,337)
|
|
|
|
(382,038)
|
|
|
|
(1,224,150)
|
|
|
|
(667,174)
|
General and
administrative expenses
|
|
|
(8,844,582)
|
|
|
|
(6,596,023)
|
|
|
|
(15,898,253)
|
|
|
|
(11,665,697)
|
Research and
development expenses
|
|
|
(9,546,922)
|
|
|
|
(5,906,719)
|
|
|
|
(15,398,022)
|
|
|
|
(10,816,286)
|
Total operating
expenses
|
|
|
(19,096,841)
|
|
|
|
(12,884,780)
|
|
|
|
(32,520,425)
|
|
|
|
(23,149,157)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
44,012,361
|
|
|
|
47,459,701
|
|
|
|
65,360,947
|
|
|
|
72,008,975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
970,293
|
|
|
|
1,615,728
|
|
|
|
2,133,552
|
|
|
|
3,229,991
|
Interest
expense
|
|
|
(11,951,851)
|
|
|
|
(10,628,222)
|
|
|
|
(21,973,827)
|
|
|
|
(21,532,881)
|
Foreign currency
exchange gains (losses)
|
|
|
(1,870,977)
|
|
|
|
(56,091)
|
|
|
|
(2,347,062)
|
|
|
|
371,574
|
Government
grant
|
|
|
1,023,922
|
|
|
|
218,286
|
|
|
|
2,463,453
|
|
|
|
426,719
|
Total non-operating
expense, net
|
|
|
(11,828,613)
|
|
|
|
(8,850,299)
|
|
|
|
(19,723,884)
|
|
|
|
(17,504,597)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
32,183,748
|
|
|
|
38,609,402
|
|
|
|
45,637,063
|
|
|
|
54,504,378
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
(4,119,756)
|
|
|
|
(5,253,628)
|
|
|
|
(7,672,082)
|
|
|
|
(9,791,254)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
28,063,992
|
|
|
|
33,355,774
|
|
|
|
37,964,981
|
|
|
|
44,713,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
0.43
|
|
|
|
0.51
|
|
|
|
0.58
|
|
|
|
0.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
|
28,063,992
|
|
|
|
33,355,774
|
|
|
|
37,964,981
|
|
|
|
44,713,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of
nil income taxes
|
|
|
13,751,361
|
|
|
|
(18,440,326)
|
|
|
|
17,669,664
|
|
|
|
(13,513,302)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
|
41,815,353
|
|
|
|
14,915,448
|
|
|
|
55,634,645
|
|
|
|
31,199,822
|
See the accompanying notes to
the unaudited condensed consolidated financial statements in the
Company's second quarter 2017 10-Q as filed with the SEC
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
Six-Month Period
Ended
June
30,
|
|
|
2017
|
|
|
2016
|
|
|
US$
|
|
|
US$
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net cash provided
by (used in) operating activities
|
|
|
152,688,570
|
|
|
|
(93,887,642)
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Proceeds from
maturity of time deposits
|
|
|
244,825,478
|
|
|
|
236,818,725
|
Purchase of time
deposits
|
|
|
(215,714,244)
|
|
|
|
(286,909,102)
|
Purchase of land use
rights
|
|
|
(6,214,207)
|
|
|
|
-
|
Purchase of and
deposits for property, plant and equipment
|
|
|
(281,550,529)
|
|
|
|
(40,022,079)
|
Refund of deposit
from an equipment supplier
|
|
|
75,197,802
|
|
|
|
-
|
Government grant
related to the construction of Sichuan plant
|
|
|
7,136,482
|
|
|
|
8,809,473
|
Net cash used in
investing activities
|
|
|
(176,319,218)
|
|
|
|
(81,302,983)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Proceeds from bank
borrowings
|
|
|
441,425,024
|
|
|
|
399,343,916
|
Repayments of bank
borrowings
|
|
|
(311,342,509)
|
|
|
|
(280,843,603)
|
Release of restricted
cash as collateral for bank borrowings
|
|
|
40,627,054
|
|
|
|
28,378,420
|
Placement of
restricted cash as collateral for bank borrowings
|
|
|
(40,653,838)
|
|
|
|
(32,492,262)
|
Net cash provided
by financing activities
|
|
|
130,055,731
|
|
|
|
114,386,471
|
|
|
|
|
|
|
|
|
Effect of foreign
currency exchange rate changes on cash and cash
equivalents
|
|
|
5,313,547
|
|
|
|
(1,143,417)
|
Net increase
(decrease) in cash and cash equivalents
|
|
|
111,738,630
|
|
|
|
(61,947,571)
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
|
168,086,445
|
|
|
|
119,928,485
|
Cash and cash
equivalents at end of period
|
|
|
279,825,075
|
|
|
|
57,980,914
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
|
|
Interest paid, net of
capitalized interest
|
|
|
17,323,875
|
|
|
|
20,737,714
|
Income taxes
paid
|
|
|
7,353,371
|
|
|
|
10,654,265
|
Non-cash investing
and financing activities:
|
|
|
|
|
|
|
|
Accrual for purchase
of equipment and construction included in accrued
expenses and other current liabilities
|
|
|
5,379,730
|
|
|
|
88,224,035
|
|
|
|
|
|
|
|
|
See the accompanying notes to
the unaudited condensed consolidated financial statements in the
Company's second quarter 2017 10-Q as filed with the SEC
CHINA XD PLASTICS
COMPANY LIMITED
|
Reconciliation of
Net Income to EBITDA
|
|
|
|
Three Months
Ended
|
|
June
30,
|
|
2017
|
2016
|
Net Income
|
$
28,063,992
|
$
33,355,774
|
Interest
expense
|
11,951,851
|
10,628,222
|
Income tax
expense
|
4,119,756
|
5,253,628
|
Depreciation and amortization expense
|
10,585,602
|
7,178,232
|
EBITDA
|
$
54,721,201
|
$
56,415,856
|
View original
content:http://www.prnewswire.com/news-releases/specialty-chemical-company-china-xd-plastics-announces-second-quarter-2017-financial-results-300501877.html
SOURCE China XD Plastics Company Limited