- Revenue of $311.4
million -
- Net Income of $14.1 million -
- Reiterating
Fiscal 2017 Guidance of $1.2 - $1.3
Billion in Revenue, $85.0 - $100.0
Million in Net Income -
HARBIN, China, Nov. 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 third quarter ended September 30,
2017.
Third Quarter 2017 Financial
Summary
- Revenue was $311.4 million, a decrease of 6.1% YoY
- Gross profit was $47.3 million, a decrease of 32.0%
YoY
- Gross margin of 15.2%, a decrease of 580 basis points YoY
- Net income was $14.1 million, a decrease of 30.2% YoY
- EBITDA was $39.0 million, a
decrease of 15.4% YoY
- Total volume shipped was 111,852 metric tons, up 3.0% YoY
"Our total revenue fell short of expectations for the third
quarter, although our PRC domestic revenue was up marginally as
compared to the same period 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 nine months of 2017,
automobile production increased 5.5% relative to the same period
last year. A favorable macroeconomic environment throughout
China's automotive supply chain
led to positive growth in our sales volume, although this was
offset by the Company's marketing strategy of offering lower-end
products with lower RMB pricing in order to further penetrate the new regional markets
in Central China and South China, which negatively affected our
average selling price and gross margin. However, we are confident
in our operating capabilities and believe that our new geographical
positioning and new development projects will create a more robust
and diversified enterprise."
Mr. Han continued, "We continued to gain traction into new
territories attributable to our new, state-of-the-art Sichuan manufacturing facility located in
southwest China. When fully operational, this strategic
initiative will add 300,000 metric tons of annual production
capacity to our 390,000 metric tons of annual production capacity
from our more established northeast Harbin plant. Our Sichuan facility currently has 50 production
lines with 216,000 metric tons of annual production capacity, and
we expect that the ongoing construction at our Sichuan campus will be completed by the end of
the first quarter of 2018. The installation of high precision
equipment in our Sichuan
facilities will enable us to broaden our product platform to serve
an array of high-growth verticals which will ultimately result in
additional income streams."
"We are very enthusiastic about all of our new industrial
projects. Our development project with the Management Committee of
Harbin Economic - Technological Development Zone includes an
industrial project for upgrading existing equipment for 100,000
metric tons of engineering plastics, which we expect will be
completed by the end of June 2018.
Also included is an industrial project for 300,000 metric tons of
biological composite materials, an industrial project for a 3D
printing intelligent manufacture demonstration factory and a 3D
printing display and experience cloud factory, all of which we
expect to be completed by the end of July 2019. We anticipate
our development project 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 will
be completed by the end of December 2018."
"Our Dubai facility 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 end of
2018. This will bring the total annual production capacity of
our Dubai facility to 25,000
metric tons. The Dubai facility
will target high-end products for overseas markets and will
ultimately help us both source
raw materials and make inroads into the markets of Europe, the Middle
East, Russia and other
overseas markets."
"We believe that our increased production capabilities,
geographical expansion and more diversified customer base both
strengthen and augment our core automotive business. Further,
our new development projects, which leverage our technical
expertise, could lead to additional new business. We view ourselves
as the leader in the polymer composites sector, which will enable us to provide
creative technology solutions for China's modernizing transportation, energy,
healthcare and industrial sectors. We reiterate our financial
guidance for fiscal 2017 and continue to be excited by our core
market positioning and expanded platform for growth," Mr. Han
concluded.
Third Quarter 2017 Results
Revenues were $311.4 million for
the third quarter of 2017, compared to $331.8 million for the same period of 2016,
representing a decrease of $20.4
million, or 6.1%. The year-over-year decrease was primarily
due to an 8.3% decrease in the average RMB selling price of our
products, attributable to the current quarter's greater percentage
of lower-end modified polypropylene sold in China, offset by a 3.0% increase in sales
volume. There was also a 0.6% negative impact from the exchange
rate due to the weakening RMB against the US dollar in the current
quarter as compared to the same period of 2016.
PRC domestic revenues increased by 0.8% in the third quarter of
2017, compared to the same period of 2016, driven by modest growth
in demand for our products in the China market and our continued efforts to
expand our customer base attributable to our new plant in
Sichuan. In the current quarter, we recorded sales increases
of 42.8% in Central China, 61.1%
in Southwest China and 0.5% in
North China, which was offset by
decreases of 5.1% in South China,
5.2% in East China and 6.8% in Northeast
China as compared to the same period in 2016. Overseas
sales resumed in the second quarter of 2017 and were $14.1 million in the current quarter, compared to
$37.0 million in the same period of
2016, representing a decrease of $22.9
million, or 61.9%. The overseas customer has made payments of $62.6 million for the first three quarters of
2017, and expects to pay off the overdue outstanding balance of
$44.9 million in the fourth quarter
of 2017.
Premium products (PA66, PA6, Plastic Alloy, PLA, POM and PPO) in
total accounted for 74.9% of revenues in the third quarter of 2017,
compared to 82.8% for the same period of 2016. During the
third quarter of 2017, the Company implemented a marketing strategy
of offering lower-end products with lower RMB pricing to further
penetrate the new regional markets in Central China and Southwest China. Pending this marketing
strategy, the Company intends to shift its production mix on a longer-term basis from traditional
lower-end products to higher-end products such as modified
polylactic acid (PLA), primarily due to (i) 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 $47.3 million in
the third quarter ended September 30,
2017, compared to $69.6
million in the same period of 2016, representing a decrease of $22.3 million, or 32.0%. Our gross
margin decreased to 15.2% for the third quarter ended September 30, 2017 from 21.0% for the same
quarter of 2016 primarily due to (i) the usage of higher-priced
modified polyamide (PA) raw materials inventory for the third
quarter of 2017 leading to higher cost of goods sold, (ii) lower
sales of higher-end products by Dubai Xinda; and (iii)
implementation of a marketing strategy to offer lower-end products
with lower RMB pricing to further penetrate the new regional
markets in Central China and
Southwest China for the third quarter of 2017 as
compared to that of the prior year.
General and administrative (G&A) expenses were $10.4 million for the third quarter of 2017,
compared to $8.4 million for the same
period of 2016, representing an increase of $2.0 million, or 23.8%. This increase was
primarily due to the increase of (i) $2.2 million in salary and welfare expenses
resulting from the increase in the number of management and general
staff from supporting departments and in average salary and bonus,
and (ii) $0.3 million in
depreciation and amortization which was partially offset by the
decrease of (iii) $0.3 million in
professional fees, and (iv)
$0.2 million in travelling and
transportation.
Research and development (R&D) expenses were $9.8 million for the third quarter of 2017,
compared to $7.9 million for the same
period of 2016, representing an increase of $1.9 million, or 24.1%. This increase was
primarily due to (i) elevated R&D activities to meet the higher
quality requirements of potential customers from Europe mainly engaged in the automobile components industry; and (ii)
increased efforts directed towards applications in new electrical
equipment and electronics, 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. As of September 30, 2017, the number of ongoing
research and development projects was 366.
Operating income was $26.2 million
for the third quarter of 2017, compared to $53.1 million for the same period of 2016,
representing a decrease of $26.9
million, or 50.7%. This decrease was primarily due to lower
gross profit, higher G&A expenses and higher R&D
expenses.
Net interest expense was $9.0
million for the third quarter of 2017, compared to net
interest expense of $9.7 million for
the same period of 2016, representing a decrease of $0.7 million, or 7.2%. This decrease was
primarily due to the increase in interest income resulting from the
increase in the average deposit balance to $503.1 million for the three month period ended
September 30, 2017 compared to
$355.8 million for the same period in
2016, and an increase of the average interest rate to 1.5% for the
three month period ended September 30,
2017 compared to 1.4% for the same period of 2106.
Income tax expense was $3.1
million for the third quarter of 2017, representing an
effective income tax rate of 17.8%, compared to income tax expense
of $5.3 million in the same period of
2016, representing an effective income tax rate of 20.8%. The
decrease of the 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 50% additional
deduction of R&D expense. The effective income tax rate for the
three-month ended September 30, 2017
differs from the PRC statutory income tax rate of 25% primarily due
to Sichuan Xinda Enterprise Group Company Limited's preferential
income tax rate and R&D 50% additional deduction of the major
PRC operating entities.
Net income was $14.1 million for
the third quarter of 2017, compared to $20.2
million for the same period of 2016, representing a decrease
of $6.1 million, or 30.2%. Basic and
diluted earnings per share in the current quarter were $0.21, compared to $0.31 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 49.6 million compared to 49.5 million shares for basic and
diluted earnings per share in the prior year period.
Earnings before interest, tax, depreciation and amortization
(EBITDA) was $39.0 million for the
third quarter of 2017, compared to $46.1
million for the same period of 2016, representing an
decrease of $7.1 million, or
15.4%. 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, 2017, the
Company had $531.2 million in cash
and cash equivalents, restricted cash and time deposits, an
increase of $74.8 million or 16.4% as
compared to $456.4 million as of
December 31, 2016. As of the
current period, working capital was $128.2
million (current assets minus current liabilities) and the
current ratio (current assets divided by current liabilities) was
1.1, as compared to the current ratio of 1.2 as of December 31, 2016. Stockholders' equity as of
September 30, 2017 was $720.4 million, an increase of $86.1 million or 13.6% as compared to
$634.3 million as of December 31, 2016.
Inventories increased by $127.8
million or 45.5% to $408.7
million as of the third 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
anticipated upcoming orders. The aggregate short-term and
long-term bank loans increased by $144.3
million or 20.8% to $838.6
million 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.
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 stablize as expected. 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 long term loans and short term
loans. This financial guidance reflects the Company's 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
Thursday, November 9, 2017, to
discuss its third quarter 2017 financial results. The
conference call can be accessed by dialing 1-866-564-2842 or
+1-323-794-2094 (for callers in the U.S.), +86-4001-209-221 (for
Mainland China callers) or +852-3008-1527 (for Hong Kong callers) and entering pass code
5456886.
A recording of the conference call will be available through
November 16, 2017, by calling
+1-888-203-1112 (for callers in the U.S.) and entering pass code
5456886.
A live webcast and replay of the conference call will be
available on the investor relations page of the Company's website
at http://chinaxd.irpass.com/.
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 30 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 September
30, 2017, 432 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://chinaxd.irpass.com/, 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
|
|
|
|
September
30,
|
|
|
December
31,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
US$
|
|
|
US$
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
46,767,025
|
|
|
|
168,086,445
|
|
Restricted
cash
|
|
|
140,553,482
|
|
|
|
103,489,402
|
|
Time
deposits
|
|
|
343,835,224
|
|
|
|
184,806,112
|
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
|
139,932,158
|
|
|
|
410,049,559
|
|
Amounts due from
a related party
|
|
|
-
|
|
|
|
229,624
|
|
Inventories
|
|
|
408,738,341
|
|
|
|
280,939,008
|
|
Prepaid expenses and
other current assets
|
|
|
317,442,321
|
|
|
|
125,310,309
|
|
Total current
assets
|
|
|
1,397,268,551
|
|
|
|
1,272,910,459
|
|
Property, plant and
equipment, net
|
|
|
832,164,655
|
|
|
|
806,363,692
|
|
Land use rights,
net
|
|
|
26,449,565
|
|
|
|
22,536,397
|
|
Long-term prepayments
to equipment and construction suppliers
|
|
|
62,641,904
|
|
|
|
14,167,702
|
|
Other non-current
assets
|
|
|
660,952
|
|
|
|
10,521,949
|
|
Total
assets
|
|
|
2,319,185,627
|
|
|
|
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
|
|
|
727,089,616
|
|
|
|
444,757,476
|
|
Bills
payable
|
|
|
213,225,439
|
|
|
|
148,392,677
|
|
Accounts
payable
|
|
|
100,965,200
|
|
|
|
320,013,040
|
|
Amounts due to
related parties
|
|
|
282,348
|
|
|
|
11,548
|
|
Income taxes
payable
|
|
|
3,170,970
|
|
|
|
897,625
|
|
Accrued expenses and
other current liabilities
|
|
|
224,330,573
|
|
|
|
119,339,366
|
|
Total current
liabilities
|
|
|
1,269,064,146
|
|
|
|
1,033,411,732
|
|
Long-term bank loans,
excluding current portion
|
|
|
111,497,838
|
|
|
|
249,520,615
|
|
Deferred
income
|
|
|
76,189,771
|
|
|
|
69,311,102
|
|
Other non-current
liabilities
|
|
|
44,470,279
|
|
|
|
42,420,619
|
|
Total
liabilities
|
|
|
1,501,222,034
|
|
|
|
1,394,664,068
|
|
|
|
|
|
|
|
|
|
|
Redeemable Series
D convertible preferred stocks (redemption
amount of US$219,653,000 and US$212,212,300 as of September 30,
2
017 and December 31, 2016, respectively)
|
|
|
97,576,465
|
|
|
|
97,576,465
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Series B preferred
stock
|
|
|
100
|
|
|
|
100
|
|
Common stock, US$0.0001 par
value, 500,000,000 shares authorized, 4
9,748,731 shares and 49,532,541 shares issued, 49,727,731
shares and 4
9,511,541 shares outstanding as of September 30, 2017 and
December
31, 2016, respectively
|
|
|
4,974
|
|
|
|
4,952
|
|
Treasury stock,
21,000 shares at cost
|
|
|
(92,694)
|
|
|
|
(92,694)
|
|
Additional paid-in
capital
|
|
|
83,075,318
|
|
|
|
82,606,404
|
|
Retained
earnings
|
|
|
669,270,174
|
|
|
|
617,168,735
|
|
Accumulated other
comprehensive loss
|
|
|
(31,870,744)
|
|
|
|
(65,427,831)
|
|
Total stockholders'
equity
|
|
|
720,387,128
|
|
|
|
634,259,666
|
|
Commitments and
contingencies
|
|
|
-
|
|
|
|
-
|
|
Total liabilities,
redeemable convertible preferred stocks and
stockholders' equity
|
|
|
2,319,185,627
|
|
|
|
2,126,500,199
|
|
|
See the accompanying
notes to the unaudited condensed consolidated financial statements
in the Company's third quarter 2017 10-Q as filed with the
SEC
|
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
|
|
|
Three-Month Period
Ended September 30,
|
|
|
Nine-Month Period
Ended September 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
311,418,943
|
|
|
|
331,847,567
|
|
|
|
862,814,803
|
|
|
|
824,017,387
|
|
Cost of
revenues
|
|
|
(264,099,790)
|
|
|
|
(262,206,936)
|
|
|
|
(717,614,278)
|
|
|
|
(659,218,624)
|
|
Gross
profit
|
|
|
47,319,153
|
|
|
|
69,640,631
|
|
|
|
145,200,525
|
|
|
|
164,798,763
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
(858,739)
|
|
|
|
(338,466)
|
|
|
|
(2,082,889)
|
|
|
|
(1,005,640)
|
|
General and
administrative expenses
|
|
|
(10,403,187)
|
|
|
|
(8,369,224)
|
|
|
|
(26,301,440)
|
|
|
|
(20,034,920)
|
|
Research and
development expenses
|
|
|
(9,857,475)
|
|
|
|
(7,864,732)
|
|
|
|
(25,255,497)
|
|
|
|
(18,681,018)
|
|
Total operating
expenses
|
|
|
(21,119,401)
|
|
|
|
(16,572,422)
|
|
|
|
(53,639,826)
|
|
|
|
(39,721,578)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
26,199,752
|
|
|
|
53,068,209
|
|
|
|
91,560,699
|
|
|
|
125,077,185
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
1,894,747
|
|
|
|
1,242,484
|
|
|
|
4,028,299
|
|
|
|
4,472,475
|
|
Interest
expense
|
|
|
(10,892,112)
|
|
|
|
(10,870,903)
|
|
|
|
(32,865,939)
|
|
|
|
(32,403,784)
|
|
Foreign currency
exchange gains (losses)
|
|
|
(2,372,361)
|
|
|
|
(14,902)
|
|
|
|
(4,719,423)
|
|
|
|
356,672
|
|
Forward contract
gains/(losses)
|
|
|
(584,724)
|
|
|
|
-
|
|
|
|
(584,724)
|
|
|
|
-
|
|
Loss on debt
extinguishment
|
|
|
-
|
|
|
|
(18,963,834)
|
|
|
|
-
|
|
|
|
(18,963,834)
|
|
Government
grant
|
|
|
2,955,045
|
|
|
|
1,011,870
|
|
|
|
5,418,498
|
|
|
|
1,438,589
|
|
Total non-operating
expense, net
|
|
|
(8,999,405)
|
|
|
|
(27,595,285)
|
|
|
|
(28,723,289)
|
|
|
|
(45,099,882)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
17,200,347
|
|
|
|
25,472,924
|
|
|
|
62,837,410
|
|
|
|
79,977,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
(3,063,889)
|
|
|
|
(5,296,118)
|
|
|
|
(10,735,971)
|
|
|
|
(15,087,372)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
14,136,458
|
|
|
|
20,176,806
|
|
|
|
52,101,439
|
|
|
|
64,889,931
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
0.21
|
|
|
|
0.31
|
|
|
|
0.79
|
|
|
|
0.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
|
14,136,458
|
|
|
|
20,176,806
|
|
|
|
52,101,439
|
|
|
|
64,889,931
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment,
net of nil income taxes
|
|
|
15,887,423
|
|
|
|
(4,953,926)
|
|
|
|
33,557,087
|
|
|
|
(18,467,228)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
|
30,023,881
|
|
|
|
15,222,880
|
|
|
|
85,658,526
|
|
|
|
46,422,703
|
|
|
See the accompanying
notes to the unaudited condensed consolidated financial statements
in the Company's third quarter 2017 10-Q as filed with the
SEC
|
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
Nine-Month Period
Ended
September
30,
|
|
|
|
2017
|
|
|
2016
|
|
|
|
US$
|
|
|
US$
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net cash provided
by (used in) operating activities
|
|
|
117,785,202
|
|
|
|
(145,259,464)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Proceeds from
maturity of time deposits
|
|
|
249,029,754
|
|
|
|
389,418,762
|
|
Purchase of time
deposits
|
|
|
(396,036,693)
|
|
|
|
(286,739,987)
|
|
Purchase of land
use rights
|
|
|
(3,203,611)
|
|
|
|
-
|
|
Purchase of and
deposits for property, plant and equipment
|
|
|
(338,711,968)
|
|
|
|
(140,826,457)
|
|
Refund of deposit
from an equipment supplier
|
|
|
122,322,463
|
|
|
|
-
|
|
Government grant
related to the construction of Sichuan plant
|
|
|
7,207,612
|
|
|
|
10,117,282
|
|
Net cash used in
investing activities
|
|
|
(359,392,443)
|
|
|
|
(28,030,400)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from bank
borrowings
|
|
|
571,141,361
|
|
|
|
762,880,805
|
|
Repayments of bank
borrowings
|
|
|
(450,252,497)
|
|
|
|
(424,933,705)
|
|
Redemption of notes
payable
|
|
|
-
|
|
|
|
(165,366,000)
|
|
Release of restricted
cash as collateral for bank borrowings
|
|
|
57,055,743
|
|
|
|
46,891,495
|
|
Placement of
restricted cash as collateral for bank borrowings
|
|
|
(61,566,506)
|
|
|
|
(64,058,775)
|
|
Net cash provided
by financing activities
|
|
|
116,378,101
|
|
|
|
155,413,820
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign
currency exchange rate changes on cash and cash
equivalents
|
|
|
3,909,720
|
|
|
|
(1,907,442)
|
|
Net decrease in
cash and cash equivalents
|
|
|
(121,319,420)
|
|
|
|
(19,783,486)
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at beginning of period
|
|
|
168,086,445
|
|
|
|
119,928,485
|
|
Cash and cash
equivalents at end of period
|
|
|
46,767,025
|
|
|
|
100,144,999
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
Interest paid, net of
capitalized interest
|
|
|
28,035,022
|
|
|
|
37,645,235
|
|
Income taxes
paid
|
|
|
9,098,388
|
|
|
|
14,880,461
|
|
Non-cash investing
activities:
|
|
|
|
|
|
|
|
|
Accrual for purchase
of equipment and construction included in accrued expenses
and other current liabilities
|
|
|
6,851,777
|
|
|
|
97,201,202
|
|
|
See the accompanying
notes to the unaudited condensed consolidated financial statements
in the Company's third quarter 2017 10-Q as filed with the
SEC
|
CHINA XD PLASTICS
COMPANY LIMITED
|
Reconciliation of
Net Income to EBITDA
|
|
|
|
Three Months
Ended
|
|
September
30,
|
|
2017
|
2016
|
Net Income
|
$
14,136,458
|
$
20,176,806
|
Interest
expense
|
10,892,112
|
10,870,903
|
Income tax
expense
|
3,063,889
|
5,296,118
|
Depreciation and amortization expense
|
10,920,798
|
9,710,638
|
EBITDA
|
$
39,013,257
|
$
46,054,465
|
View original
content:http://www.prnewswire.com/news-releases/specialty-chemical-company-china-xd-plastics-announces-third-quarter-2017-financial-results-300552697.html
SOURCE China XD Plastics Company Limited