HARBIN, China, March 15, 2016 /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 fourth quarter and fiscal year ended December 31, 2015.
Fourth Quarter 2015 Financial Highlights
- Revenue was $272.8 million, a decrease of 11.2% YoY and an
increase of 14.1% sequentially
- Gross profit was $52.0 million, a decrease of 10.5% YoY
and an increase of 77.5% sequentially
- Gross margin of 19.1%, an increase of 20 basis points YoY and
680 basis points sequentially
- Net income was $26.8 million, a decrease of 25.1% YoY and
an increase of 346.7% sequentially
- Total volume shipped was 96,293 metric tons, up 0.2% YoY and an
increase of 17.9% sequentially
Full Year 2015 Financial Summary
- Revenue was $999.2 million, a
decrease of 10.0% from $1,110.6
million for the full year 2014
- Gross profit was $181.4 million,
a decrease of 18.4% from $222.4
million for the full year 2014
- Gross profit margin of 18.2%, a decrease of 180 basis points
from the full year 2014
- Net income was $83.7 million, a
decrease of 30.7% from $120.7 million
for the full year 2014
- Total volume shipped was 332,144 metric tons, down 2.7% from
341,520 metric tons for the full year 2014
"We are pleased to have met our revised revenue and net income
guidance for 2015 issued in the third quarter of last year due to
reasonably strong customer demand in the fourth quarter for our
products. However, challenging macroeconomic conditions in
China has impeded the growth of
the domestic automotive market, which stalled our record of steady
growth for the first time last year. Because of the challenging
operating conditions, our domestic market experienced a 1.0%
decrease in sales volume and a 1.4% decrease in the average selling
price of our products in fiscal 2015 as compared to fiscal 2014. We
experienced a decrease in our operating metrics primarily due to
the lower 7.2% sales contribution from sales overseas compared to
this customer's 12.6% sales contribution in fiscal 2014," said Jie
Han, Chairman and Chief Executive Officer.
"With the slowing domestic economy, vehicle sales in
China grew by only 4.7% in 2015,
the slowest rate in 25 years, and both the automotive and
automotive parts industries in China have experienced pricing pressure
beginning in 2015. In order to stimulate the auto industry, in
September 2015, the Chinese
government implemented an incentive policy granting 50% reduction
in sales tax for eligible purchases of vehicles with engine sizes
of 1.6 liters and lower. This helped spur the recovery of vehicle
sales in China in the fourth
quarter of 2015 and is reflected in our better sequential results
as well as in an improved year-over-year gross profit margin."
"Our marketing efforts have produced positive sales results in
Southwest China and Central China where we are working to develop
new customers. Our expansion plans in Sichuan enables us to locally service
important new customers in this rapidly growing auto-making hub.
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 such as high speed rail, shipping aviation, 3D printing
materials, bio-degradable materials, medical-grade materials and
food packaging. When complete, the new facility under construction
will increase our total production capacity by 300,000 metric tons
of new capacity. We expect our Sichuan campus to be commissioned in the
second half of 2016 with approximately 60,000 metric tons of
production capacity contribution this year."
"Our new facility in Dubai
produces specialized high margin products and is strategically
situated as a gateway to the Middle
East and Europe. Phase 1 of
our Dubai plant was completed last
year with plant capacity capable of producing 2,500 metric tons of
high end products, and production is continuing to ramp to reach
optimal utilization in 2016. Phase 2 of Dubai, which will produce 14,000 metric tons
of additional capacity, is currently under construction and is
expected to start producing at the beginning of 2017."
"We are pleased to have seen our business stabilize in the
fourth quarter as seen by a slight upturn in customer demand. We
are optimistic about our outlook for 2016 as we bring new capacity
online to serve new customers in Asia, Europe
and Middle East. We are excited
about our growth prospects and believe that our new production
capacity, technological edge and improved market positioning will
enable us to substantially grow revenues and market share in the
years ahead," concluded Chairman and Chief Executive Officer
Jie Han.
Fourth Quarter 2015 Results
Revenues were $272.8 million for
the fourth quarter of 2015, compared to $307.1 million in the same period of 2014,
representing a decrease of 11.2%, or $34.3
million. The year-over-year decrease was primarily due to a
7.9% decrease in the average RMB selling price, which was offset
slightly by a 0.2% increase in sales volume. The depreciation
in the RMB foreign exchange rate was also a factor in the decrease
in revenue for the period.
Premium products (mainly PA6, PA66, POM, PPO, PLA and plastic
alloys) accounted for 81.1% of total revenues in the fourth quarter
of 2015, compared to 75.8% in the prior year period. Sales to the
Southwest China market accounted
for 7.9% of total revenues compared to 2.8% in the fourth quarter
of 2014 as we have begun to more aggressively ramp our sales
efforts consistent with the construction of our new plant in
Sichuan. Sales to
the overseas market accounted for 0.1% of total revenues in
the fourth quarter of 2015, compared to 19.8% in the fourth quarter
of 2014.
Gross profit was $52.0 million for
the fourth quarter of 2015, compared to $58.1 million in the same period of 2014,
representing a decrease of 10.5%, or $6.1
million. Gross margin was 19.1% compared to 18.9% in the
fourth quarter of 2014, primarily due to a product mix shift with a
higher margin contribution from premium products.
General and administrative (G&A) expenses were $6.5 million for the fourth quarter of 2015,
compared to $6.8 million in the same
period of 2014, representing a decrease of 4.4%, or $0.3 million.
Research and development (R&D) expenses were $2.8 million for the fourth quarter of 2015,
compared to $2.4 million in the same
period of 2014, representing an increase of 16.7%, or $0.4 million. During the quarter, the Company
recalibrated its R&D programs in response to changing market
conditions, and has adjusted its R&D activities to focus on new
products for advanced industrialized applications, augmenting its
auto sector focus to include other sectors such as ships, aviation,
high-speed rail, 3D printing materials, biodegradable plastics,
medical-grade materials, food packaging and other sectors. As
of December 31, 2015, the number of
ongoing research and development projects was 144 as compared to 96
as of fiscal year end 2014.
Operating income was $42.3 million
for the fourth quarter of 2015, compared to $48.6 million in the same period of 2014,
representing a decrease of 13.0%, or $6.3
million. The decrease is primarily due to lower gross
profit, and higher general and administrative and R&D
expenses.
Net interest expense was $9.3
million for the fourth quarter of 2015, compared to net
interest expense of $8.0 million in
the same period of 2014. This was primarily due to (i) a
decrease of $1.1 million in interest
income due to the decreased average deposit balance of $265.0 million bearing a weighted average
interest rate of 2.2% in the fourth quarter of 2015, compared to
the average deposit balance of $324.0
million bearing a weighted average interest rate of 3.0% in
the same period of 2014, leading to the decrease of interest
income; and (ii) an increase of interest expense of $0.3 million.
Income tax expense was $6.4
million for the fourth quarter of 2015, representing an
effective income tax rate of 19.2%, compared to an effective income
tax rate of 4.5% in the fourth quarter of 2014. The increase in the
effective income tax rate was mainly due to the lower sales
contribution AL Composites, an income tax exempt subsidiary, which
comprised 0.1% of total revenues in the fourth quarter of 2015,
compared to 19.8% in the fourth quarter of 2014.
Net income was $26.8 million for
the fourth quarter of 2015, compared to $35.8 million in the same period of 2014,
representing a decrease of 25.1%, or $9.0
million. Basic and diluted earnings per share were
$0.41, compared to $0.54 per share in the fourth quarter of
2014.
The average number of shares used in the computation of basic
and diluted earnings per share for the three months ended
December 31, 2015 was 49.3 million,
compared to 49.1 million shares for basic and diluted earnings per
share in the prior year period.
EBITDA was $51.2 million for the
fourth quarter of 2015, compared to EBITDA of $53.8 million in the same period of 2014,
representing a decrease of 4.8%, or $2.6
million. 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.
Full Year 2015 Financial Results
Revenues were $999.2 million in
fiscal 2015, compared to $1,110.6
million in fiscal 2014, representing a decrease of 10.0%, or
$111.4 million. The year-over-year
decrease was primarily due to a 2.7% decrease in sales volume and a
5.5% decrease in the average RMB selling price of our products.
Premium products accounted for 79.1% of total revenues in fiscal
2015, compared to 75.1% in the prior year. Sales to
the overseas market accounted for 7.2% of total revenues in
fiscal 2015, compared to 12.6% in the prior year.
Gross profit was $181.4 million in
fiscal 2015, compared to $222.4
million in fiscal 2014, representing a decrease of 18.4%, or
$41.0 million. Our gross margin
decreased to 18.2% for fiscal 2015 from 20.0% for fiscal 2014,
primarily due to pricing pressure resulting from the slowdown of
the auto industry in China and a
lower margin contribution from overseas sales. The average RMB
selling price of our products decreased 5.5% for the year
ended December 31, 2015 as compared
to that of the prior year.
General and administrative (G&A) expenses were $23.8 million in fiscal 2015, compared to
$20.6 million in fiscal 2014,
representing an increase of 15.5%, or $3.2
million. This increase is primarily due to the increase of
(i) $1.1 million of corporate events
related expenses, (ii) $0.7 million
of travel expenses in connection with our business expansion, (iii)
$0.4 million of fixed assets
depreciation, (iv) $0.7 million of
other miscellaneous expenses, and (v) $0.3
million of payroll and welfare expenses.
Research and development (R&D) expenses were $21.1 million in fiscal 2015, compared to
$29.4 million in fiscal 2014,
representing a decrease of 28.2%, or $8.3
million. During the year, the Company recalibrated its
R&D programs in response to changing market conditions, and has
adjusted its R&D activities to focus on new products for
advanced industrialized applications, augmenting its auto sector
focus to include other sectors such as ships, aviation, high-speed
rail, 3D printing materials, biodegradable plastics, medical-grade
materials, food packaging and other sectors. As of December 31, 2015, the number of ongoing research
and development projects was 144. In 2015, the Company successfully
launched 40 new automobile manufacturers certified products
("AMCP"), which increased its total number of AMCP to 361.
Operating income was $135.0
million in fiscal 2015, compared to $171.7 million in fiscal 2014, representing a
decrease of 21.4%, or $36.7 million.
This decrease was due to lower gross profit, higher general and
administration expenses and higher selling expenses, which were
partially offset by the lower research and development
expenses.
Net interest expense was $34.5
million in fiscal 2015, compared to net interest expense of
$30.5 million in fiscal
2014. This was primarily due to (i) an increase of
$1.8 million in interest expense
resulting from the issuance of senior notes in 2014, and (ii) a
decrease of $2.8 million in interest
income due to the decrease of the average deposit balance of
$308.1 million bearing a weighted
average interest rate of 2.6% in fiscal 2015, as compared to the
average deposit balance of $399.2
million bearing a weighted average interest rate of 2.7% in
fiscal 2014, leading to the decrease of interest income.
Income tax expense was $18.2
million in fiscal 2015, representing an effective income tax
rate of 17.9%, compared to an effective income tax rate of 13.1% in
fiscal 2014. The increase of the effective income tax rate was
primarily due to less profit generated by AL Composites in 2015
compared with that of 2014, during which Dubai Composites was
exempted from income taxes.
Net income was $83.7 million in
fiscal 2015, compared to $120.7
million in fiscal 2014, representing a decrease of 30.7%, or
$37.0 million.
Basic and diluted earnings per share were $1.27 in fiscal 2015, compared to basic and
diluted earnings per share of $1.85
in fiscal 2014.
The average number of shares used in the computation of basic
and diluted earnings per share for the fiscal year 2015 was 49.2
million, compared to 48.8 million shares in the prior fiscal
year.
EBITDA was $172.2 million for the
fiscal year 2015, as compared to EBITDA of $203.5 million in the prior fiscal year,
representing a decrease of 15.4%, or $31.3
million. 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 December 31, 2015, the
Company had $119.9 million in cash
and cash equivalents, $237.6 million
in time deposits with commercial banks, $230.4 million in working capital (current assets
minus current liabilities) and a current ratio (current assets
divided by current liabilities) of 1.3. Stockholders' equity
as of December 31, 2015 was
$578.0 million, compared to
stockholders' equity of $525.3
million as of December 31,
2014.
Our financial condition continued to improve as measured by an
increase of 10.0% in stockholders' equity as of December 31, 2015 compared to the prior year.
Cash and cash equivalents, restricted cash and time deposits
increased by 37.7% due to cash flows provided by operating
activities and an increase of short-term and long-term bank loans
of $117.8 million to meet our capital
expenditure requirements, which was partially offset by the
purchase of and prepayments for property, plant and equipment.
Inventories increased by 18.0% due to increased purchases of raw
material to take advantage of the lower purchase prices of raw
materials and the Company's strategy to stock up on inventory. The
increase in deferred income was due to RMB
403.6 million (equivalent to $62.0
million) in government grants from authorities in
Sichuan Province in connection
with the construction of our 4th production base in Sichuan Province.
The aggregate short-term and long-term bank loans and notes
payable increased by 28.4% due to utilization of existing lines of
credit. We believe our current debt level is manageable. We define
a manageable debt level as the sum of aggregate short-term and
long-term loans, and notes payable over the total assets. Accounts
payable and bills payable increased by 48.8% due to its utilizing
an extension of purchase credit terms. As of December 31, 2015, notes payable was $145.6 million relating to the 11.75% guaranteed
senior notes due in 2019, net of discount and issuance cost.
Net cash provided by operating activities increased by
$78.7 million for the year ended
December 31, 2015 from $148.7 million for the year ended December 31, 2014. This was primarily due to
(i) the decrease of approximately $267.5
million in operating cash payment, including raw material
purchases, rental and personnel costs for the year ended
December 31, 2015, (ii) the decrease
of $20.3 million in income tax
payments, (iii) the increase of $3.6
million received from a government grant, and (iv) the cash
received of $0.6 million as a result
of the exercise of a forward contract whereas cash payment of
$1.1 million in 2014 which led to
increase of $1.7 million for the year
ended December 31, 2015, partially
offset by (v) the decrease of approximately $208.1 million of cash collected from our
customers, and (vi) the increase of $6.6
million in interest payments for the year ended December 31, 2015.
Financial Guidance and Business Outlook
The Company projects revenue for fiscal 2016 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 a
steady recovery throughout the Chinese automotive supply chain 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 will start production in the second half of
2016. It also assumes the average exchange rate of the US
dollar to RMB at 6.5. This financial guidance reflects the
Company's preliminary view of its business outlook for fiscal 2016
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 8:30 a.m. ET on Tuesday, March 15, 2016, to discuss its fourth
quarter and fiscal 2015 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 5155910.
A recording of the conference call will be available through
March 21, 2016, by calling +1 (866)
846-0868 (for callers in the U.S.) and entering pass code
5155910.
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 December 31, 2015, 361 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 website at 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
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: Grayling Communications Inc.
Ms. Vivian Chen, Managing
Director
US: +1 (347) 481-3711
Email: Vivian.chen@grayling.com
-Financial Tables Follow-
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
|
December
31,
|
|
2015
|
|
2014
|
|
US$
|
|
US$
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
|
119,928,485
|
|
|
45,456,612
|
Restricted
cash
|
|
50,852,327
|
|
|
12,545,772
|
Time
deposits
|
|
237,626,806
|
|
|
238,532,702
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
234,542,739
|
|
|
203,998,138
|
Amounts due from
a related party
|
|
244,836
|
|
|
220,262
|
Inventories
|
|
294,665,195
|
|
|
249,797,244
|
Prepaid expenses and
other current assets
|
|
15,675,848
|
|
|
11,253,828
|
Total current
assets
|
|
953,536,236
|
|
|
761,804,558
|
Property, plant and
equipment, net
|
|
571,746,507
|
|
|
318,324,600
|
Land use rights,
net
|
|
24,506,837
|
|
|
11,896,542
|
Prepayments to
equipment and construction suppliers
|
|
183,226,006
|
|
|
182,259,578
|
Other non-current
assets
|
|
18,966,622
|
|
|
21,256,332
|
Total
assets
|
|
1,751,982,208
|
|
|
1,295,541,610
|
|
|
|
|
|
|
LIABILITIES,
REDEEMABLE CONVERTIBLE PREFERRED STOCKS AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term bank
loans, including current portion of long-term
bank loans
|
|
284,339,089
|
|
|
99,735,422
|
Bills
payable
|
|
33,522,287
|
|
|
43,389,928
|
Accounts
payable
|
|
257,417,000
|
|
|
152,073,014
|
Amounts due to a
related party
|
|
8,439
|
|
|
-
|
Income taxes
payable
|
|
6,881,946
|
|
|
3,269,115
|
Accrued expenses and
other current liabilities
|
|
140,988,712
|
|
|
24,484,583
|
Total current
liabilities
|
|
723,157,473
|
|
|
322,952,062
|
Long-term bank loans,
excluding current portion
|
|
107,481,709
|
|
|
174,274,446
|
Notes
payable
|
|
145,634,996
|
|
|
144,373,645
|
Deferred
income
|
|
62,039,050
|
|
|
-
|
Other non-current
liabilities
|
|
38,046,917
|
|
|
30,977,376
|
Total
liabilities
|
|
1,076,360,145
|
|
|
672,577,529
|
|
|
|
|
|
|
Redeemable Series
D convertible preferred stock
|
|
97,576,465
|
|
|
97,576,465
|
Stockholders'
equity:
|
|
|
|
|
|
Series B preferred
stock
|
|
100
|
|
|
100
|
Common stock,
US$0.0001 par value, 500,000,000 shares authorized, 49,344,284
shares and 49,172,796 shares
issued, 49,323,284 shares and 49,151,796 shares
outstanding as of December 31, 2015
and 2014, respectively
|
|
4,933
|
|
|
4,916
|
Treasury stock,
21,000 shares at cost
|
|
(92,694)
|
|
|
(92,694)
|
Additional paid-in
capital
|
|
81,919,932
|
|
|
80,875,787
|
Retained
earnings
|
|
515,555,985
|
|
|
431,823,706
|
Accumulated other
comprehensive income (loss)
|
|
(19,342,658)
|
|
|
12,775,801
|
Total stockholders'
equity
|
|
578,045,598
|
|
|
525,387,616
|
Commitments and
contingencies
|
|
|
|
|
|
Total liabilities,
redeemable convertible preferred stocks and stockholders'
equity
|
|
1,751,982,208
|
|
|
1,295,541,610
|
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
|
Years
Ended December
31,
|
|
Three
Months
Ended December 31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
Revenues
|
|
999,192,894
|
|
|
1,110,685,692
|
|
272,752,694
|
|
|
307,149,813
|
Cost of
revenues
|
|
(817,811,445)
|
|
|
(888,227,868)
|
|
(220,831,046)
|
|
|
(249,007,874)
|
Gross
profit
|
|
181,381,449
|
|
|
222,457,824
|
|
51,921,648
|
|
|
58,141,939
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
(1,458,658)
|
|
|
(728,232)
|
|
(367,380)
|
|
|
(292,992))
|
General and
administrative expenses
|
|
(23,816,148)
|
|
|
(20,564,820)
|
|
(6,495,472)
|
|
|
(6,802,224)
|
Research and
development expenses
|
|
(21,061,345)
|
|
|
(29,434,680)
|
|
(2,756,980)
|
|
|
(2,366,232)
|
Total operating
expenses
|
|
(46,336,151)
|
|
|
(50,727,732)
|
|
(9,619,832)
|
|
|
(9,461,448)
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
135,045,298
|
|
|
171,730,092
|
|
42,301,816
|
|
|
48,680,491
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
8,221,532
|
|
|
10,984,980
|
|
1,370,540
|
|
|
2,436,123
|
Interest
expense
|
|
(42,704,097)
|
|
|
(41,518,878)
|
|
(10,712,778)
|
|
|
(10,459,305)
|
Foreign currency
exchange gains (losses)
|
|
(2,237,541)
|
|
|
(1,938,807)
|
|
(1,214,553)
|
|
|
(1,745,661)
|
Forward contract
gains/(losses)
|
|
653,569
|
|
|
(1,067,162)
|
|
|
|
|
(442,396)
|
Change in fair value
of warrants liability
|
|
|
|
|
(1,871,074)
|
|
|
|
|
(2,397,256)
|
Government
|
|
2,991,493
|
|
|
2,723,495
|
|
1,439,298
|
|
|
1,399,283
|
Total non-operating
income, net
|
|
(33,075,044)
|
|
|
(32,687,446)
|
|
(9,117,493)
|
|
|
(11,209,222))
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
101,970,254
|
|
|
139,042,646
|
|
33,184,323
|
|
|
37,471,269
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(18,237,975)
|
|
|
(18,266,277)
|
|
(6,369,171)
|
|
|
(1,685,597)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
83,732,279
|
|
|
120,776,369
|
|
26,815,152
|
|
|
35,785,672
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
1.27
|
|
|
1.85
|
|
0.41
|
|
|
0.54
|
Net
Income
|
|
83,732,279
|
|
|
120,776,369
|
|
26,815,152
|
|
|
35,785,672
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of
nil income taxes
|
|
(32,118,459)
|
|
|
(12,268,113)
|
|
(15,606,469)
|
|
|
(6,406,925)
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
51,613,820
|
|
|
108,508,256
|
|
11,208,683
|
|
|
29,378,747
|
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
Years Ended
December 31,
|
|
2015
|
|
2014
|
|
US$
|
|
US$
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
|
83,732,279
|
|
|
120,776,369
|
Adjustments to
reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Net reversal for
doubtful accounts
|
|
(69,281)
|
|
|
(35,849)
|
Depreciation and
amortization
|
|
27,540,212
|
|
|
22,916,893
|
Stock-based
compensation
|
|
1,044,162
|
|
|
1,003,040
|
Loss on change in
fair value of warrants liability
|
|
-
|
|
|
1,871,074
|
Amortization of
discount and issuance cost of the Notes
|
|
1,086,010
|
|
|
898,634
|
Loss on change in
fair value of forward contract
|
|
-
|
|
|
2,435
|
Foreign currency
exchange losses (gains)
|
|
2,720,131
|
|
|
2,051,596
|
Losses on disposals
of property, plant and equipment
|
|
9,036
|
|
|
10,292
|
Deferred income tax
benefit
|
|
(2,380,236)
|
|
|
(2,018,757)
|
Change in
operating assets and liabilities:
|
|
|
|
|
|
Restricted
cash
|
|
4,011,349
|
|
|
(6,427,562)
|
Accounts
receivable
|
|
(40,614,289)
|
|
|
72,318,976
|
Amounts due from a
related party
|
|
(35,937)
|
|
|
-
|
Inventories
|
|
(58,103,919)
|
|
|
(109,198,972)
|
Prepaid expenses and
other current assets
|
|
(4,542,796)
|
|
|
(3,719,794)
|
Other non-current
assets
|
|
(371,872)
|
|
|
-
|
Bills
payable
|
|
(8,119,365)
|
|
|
18,538,133
|
Accounts
payable
|
|
116,133,982
|
|
|
32,823,457
|
Amounts due to a
related party
|
|
8,167
|
|
|
-
|
Income taxes
payable
|
|
3,889,710
|
|
|
(8,996,712)
|
Accrued expenses and
other current liabilities
|
|
86,963,823
|
|
|
5,935,116
|
Deferred
income
|
|
3,371,249
|
|
|
-
|
Other non-current
liabilities
|
|
11,098,323
|
|
|
-
|
Net cash provided by operating
activities
|
|
227,370,738
|
|
|
148,748,369
|
Cash flows from
investing activities:
|
|
|
|
|
|
Purchase of time
deposits
|
|
(474,254,312)
|
|
|
(626,994,741)
|
Proceeds from
maturity of time deposits
|
|
463,771,799
|
|
|
663,216,581
|
Purchases of and
deposits for property, plant and equipment
|
|
(267,427,681)
|
|
|
(334,092,742)
|
Purchase of land use
rights
|
|
(13,931,804)
|
|
|
(1,460,754)
|
Government grant
related to the construction of Sichuan plant
|
|
11,499,000
|
|
|
-
|
Net cash used in investing
activities
|
|
(280,342,998)
|
|
|
(299,331,656)
|
Cash flows from
financing activities:
|
|
|
|
|
|
Proceeds from bank
borrowings
|
|
504,218,741
|
|
|
797,615,642
|
Repayment of bank
borrowings
|
|
(339,528,477)
|
|
|
(831,932,534)
|
Proceeds from Senior
Notes Payable
|
|
-
|
|
|
148,396,175
|
Payment of issuance
costs of the Notes
|
|
-
|
|
|
(4,718,452)
|
Proceeds from
exercise of Series A investor warrants
|
|
-
|
|
|
596,740
|
Proceeds from early
exercise of options
|
|
121,725
|
|
|
-
|
Release of restricted
cash as collateral for bank borrowings
|
|
-
|
|
|
10,022,398
|
Placement of
restricted cash as collateral for bank borrowings
|
|
(33,077,094)
|
|
|
(20,612,868)
|
Net cash provided by financing
activities
|
|
131,734,895
|
|
|
99,367,101
|
Effect of foreign
currency exchange rate changes on cash and cash
equivalents
|
|
(4,290,762)
|
|
|
1,126,894
|
Net increase
(decrease) in cash and cash equivalents
|
|
74,471,873
|
|
|
(50,089,292)
|
Cash and cash
equivalents at beginning of year
|
|
45,456,612
|
|
|
95,545,904
|
Cash and cash
equivalents at end of year
|
|
119,928,485
|
|
|
45,456,612
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
Interest paid, net of
RMB 231,356, RMB 113,317 and nil
capitalized for the years ended December 31, 2015, 2014 and
2013, respectively
|
|
40,136,978
|
|
|
33,537,952
|
Income taxes
paid
|
|
8,982,167
|
|
|
29,288,894
|
Non-cash investing
and financing activities:
|
|
|
|
|
|
Government grant
related to construction in the form of repayment
of bank loans on behalf of the Company by the government (note
13)
|
|
38,118,231
|
|
|
-
|
Government grant
related to the construction of Sichuan plant in
the form of restricted cash (note 13)
|
|
11,117,817
|
|
|
-
|
Accrual for purchase
of equipment
|
|
41,251,663
|
|
|
-
|
Accrual for issuance
cost of the Notes
|
|
-
|
|
|
202,712
|
CHINA XD PLASTICS
COMPANY LIMITED
|
Reconciliation of
Net Income to EBITDA
|
|
|
Three Months
Ended
|
Years
Ended
|
|
December
31,
|
December
31,
|
|
2015
|
2014
|
2015
|
2014
|
Net income
|
$26,815,152
|
$35,785,672
|
$83,732,279
|
$120,776,369
|
Interest
expense
|
10,712,778
|
10,459,305
|
42,704,097
|
41,518,878
|
Income tax
expense
|
6,369,171
|
1,685,597
|
18,237,975
|
18,266,277
|
Depreciation and amortization expense
|
7,254,119
|
5,907,853
|
27,540,212
|
22,916,893
|
EBITDA
|
51,151,220
|
53,838,427
|
172,214,563
|
203,478,417
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/china-xd-plastics-announces-fourth-quarter-and-fiscal-year-2015-financial-results-300236061.html
SOURCE China XD Plastics Company Limited