China XD Plastics Announces Preliminary Results for the Fourth Quarter and Fiscal Year 2009

Tuesday, Feb 09, 2010

China XD Plastics Company Ltd. , the largest Chinese developer, manufacturer, and distributor of modified plastics primarily for use in automotive applications in China, today announced selected estimated unaudited financial results for the fourth quarter and fiscal year 2009.

For the fourth quarter of 2009, the Company expects its net revenues to be in the range of approximately $38 million to $41 million, exceeding the $36 million upper range of its guidance. This represents approximately 90% to 105% increase from its net revenues in the fourth quarter of 2008. As previously guided, the Company's gross margin for the fourth quarter is expected to be in the range of approximately 23% to 25%.

"We are pleased with our strong growth in the fourth quarter, reflecting the strong fundamentals of our business model," said Mr. Jie Han, Chairman and CEO of China XD Plastics. "I am also pleased to announce that, during the fourth quarter of 2009, we have completed the installation of an additional 12 automatic production lines funded by the private placement in December 2009. With additional capacity of at least 30,000 tons, we are well positioned to continue our rapid growth in 2010 to keep up with the rising demand for automotive plastics from the Chinese market. As we move into 2010, we expect to strengthen our operating cash flows over the fourth quarter of 2009 levels which will greatly enhance our cash position to support our growth in the quarters ahead."

The Company believes it is on track to exceed its full year 2009 targeted total net revenues of between $110 million and $130 million. These selected estimated results are subject to the Company's normal, quarter-end closing procedures, the Company's actual results may differ from its current estimates.

About China XD Plastics Company Ltd.

China XD Plastics Company Ltd., through its wholly owned subsidiary Harbin Xinda Macromolecule Material ("Xinda"), develops, manufactures, and distributes modified plastics, primarily for automotive applications. The Company's specialized plastics are used in the exterior and interior trim and in the functional components of more than 30 automobile brands manufactured in China including Audi, Red Flag, Volkswagen and Mazda. The Company's wholly-owned research institute is dedicated to the research and development of modified plastics, and benefits from the cooperation with well-known scientists from prestigious universities in China. As of the end of December 31, 2009, 145 products that Xinda manufactured have been certified for use by one or more of the automobile manufacturers in China. For more information please visit http://www.chinaxd.net/ .

Source: PR Newswire