HARBIN, China, Nov. 14, 2019 /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,
2019.
Third Quarter 2019 Financial
Summary
- Revenue was $373.2 million, an increase of 25.6%
YoY and a decrease of 19.4% sequentially
- Gross profit was $60.1 million, an increase of 27.3% YoY
and a decrease of 8.0% sequentially
- Gross margin of 16.1%, an increase of 20 basis points YoY and
an increase of 200 basis points sequentially
- Net income was $17.0 million, an increase of 88.9%
YoY and a decrease of 57.6% sequentially
- EBITDA was $54.6 million, an
increase of 82.0% YoY and a decrease of 22.1% sequentially
- Total volume shipped was 92,001 metric tons, a
decrease of 15.5% YoY and a decrease of 13.7%
sequentially
Our third quarter 2019 results were consistent with the
continuous downturn in the auto industry of China since the summer of 2018," said
Jie Han, Chairman of the Board of
Directors and Chief Executive Officer." China's automobile industry has been
negatively affected by lackluster consumer demand in the domestic
market, pressure from the newly issued and more stringent emission
standards and a slash in subsidies to alternative energy vehicles.
Yet to come is the trend reversal of automobile demand in
China. Amid the negative
growth environment, the small and medium-sized competitors of our
industry in China have experienced
difficulty to fulfill customers' orders due to reasons such as
changing financial conditions and tougher environmental policies.
As a result, customers have started redirecting their orders to
larger suppliers such as China XD. During the third quarter of
2019, the Company was able to successfully leverage the increasing
customer demand and up-sell its high-end products produced with
higher-priced raw materials in China, as well as achieving the rapid increase
of customer orders in non-automobile fields, evidenced by our
stable sales growth in several domestic regions."
"Meanwhile, China XD continued to optimize its management
structure and enhancing efficiency, resulting in decreased expenses
and enhanced net income. We are pleased with our good results.
"Last month the Company has achieved a consortium led by
ICBC, the world largest commercial bank by assets, which
speaks volume of the confidence that world leading financial
institutions in our business and brand, This will help us to
succeed Company's expansion strategy in multiple regions and
sectors. We will be more fiscally vigilant and responsible and
stabilize our capital structure by replacing more short term debts
with longer term instruments, among other means, in order to
maintain a stable and sound balance sheet and weather potential and
unexpected turbulence in the future."
"We are committed to completing our industrial project in
Heilongjiang base for upgrading
existing facilities of 100,000 metric tons capacity of engineering
plastics in the fourth quarter of 2019, with relevant equipment on
board. Together with the production capacity ramp up in
Dubai, we will continure to remain
our ability to make further inroads into more specialized high-end
products for various important new markets, and to be
confident with our core market positioning and expanded platform
for growth," Mr. Han concluded.
Third Quarter 2019 Results
Revenues were US$373.2 million in
the third quarter ended September 30,
2019, representing an increase of US$76.0 million, or 25.6%, compared to
US$297.2 million in the same period
of last year, as a combined result of i) an increase of 52.3% in
the average RMB selling price of our products; and partially offset
by ii) a decrease of 15.5% in sales volume; and iii) a depreciation
of RMB against US dollars by 3.8%, as compared with those of last
year.
(i) Domestic market
For the three-month period ended September 30, 2019, revenues from domestic market
increased by US$55.1 million or 18.5%
compared with that in the same period of last year, as a combined
result of: i) an increase of 47.3% in the average RMB selling price
of our products; partially offset by ii) a decrease of 17.4% in
sales volume; and iii) a depreciation of RMB against US dollars by
3.8%, as compared with those of last year.
According to the China Association of Automobile Manufacturers,
automobile production and sales in China decreased by 11.4% and 10.3%,
respectively, for the first nine months of 2019 as compared to the
same period of 2018. The weakening in macroeconomic conditions
since summer of 2018 continued to exacerbate automobile business
environment, but thanks to our positive efforts to expand our
marketing areas and customer bases and to meet their new
requirements, the Company has achieved sales growth of 51.6% in
Central China, 45.9% in
North China, 30.1% in Southwest China, 28.3% in Northeast China, and 0.9% in East China,
partially offset by the sales decrease of 12.9% in Southern China.
As for the RMB selling price, the increase of 47.3% was mainly
due to: i) increased sales of new categories of higher-end
products of PA66 and PA6 produced with high-priced raw materials
with higher selling price in domestic market; and ii) sales of
high-priced work in progress in domestic market during the
three-month period ended September 30,
2019.
(ii) Overseas market
For the three-month period ended September 30, 2019, revenues from overseas market
were US$20.9 million as compared to
US$2,104 of the same period of
2018.
After a successful trial production at our production base in
Dubai in November 2018, the Company has
established business relationships with new customers in UAE
and India, and shipped products to
the end users in Europe and
Southeast Asia. We are optimistic about the prospect of our
business expansion overseas.
Premium products (PA66, PA6, Plastic Alloy, PLA, POM and PPO) in
total accounted for 85.5% of revenues from sales of finished goods
in the third quarter of 2019, compared to 77.3% for the same period
of 2018. The Company continued to shift production mix from
traditional lower-end products such as PP to higher-end products
such as PA66 and PPO, 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 demand from and consumer
recognition of higher-end cars made by automotive manufacturers
from Chinese and Germany joint
ventures, Sino-U.S. and Sino-Japanese joint ventures, which
manufacturers tend to use more and higher-end modified
plastics in quantity per vehicle in China.
The Company also sold high-priced work in progress with
discounted price in domestic markets during the three-month period
ended September 30, 2019 in order to
accelerate inventory turnover and replenish operating funds.
Gross profit was US$60.1 million
in the third quarter ended September 30,
2019, compared to US$47.2million in the same period of
2018. Our gross margin increased to 16.1% during the third
quarter ended September 30, 2019 from
15.9% during the same quarter of 2018 primarily due to more sales
of higher-end products during the quarter ended September 30, 2019 as compared to that of the
prior year.
General and administrative (G&A) expenses were US6.0 million
for the quarter ended September 30,
2019 compared to US$8.1
million in the same period in 2018, representing a decrease
of 25.9%, or US$2.1 million. The
decrease was primarily due to our approach to optimize management
structure and enhancing efficiency, leading to the decrease of (i)
US$0.6 million in share based
compensation incurred for external consultancy, (ii) US$0.6 million in salary and welfare, and (iii)
US$0.9 million in travelling,
transportation and miscellaneous expenses.
Research and development (R&D) expenses were US$19.9 million during the quarter ended
September 30, 2019 compared with
US$23.3 million during the same
period in 2018, representing a decrease of US$3.4 million, or 14.6%. This decrease was
primarily due to (i) a decrease of US$2.5
million in raw materials consumption and (ii) a decrease of
US$0.9 million in salary and welfare
of R&D personnel. As of September
30, 2019, the number of ongoing research and development
projects was 361.
Operating income was US$33.8
million in the third quarter ended September 30, 2019 compared to US$13.0 million in the same period of 2018,
representing an increase of 160.0% or US$20.8 million. This increase was primarily due
to the higher gross profit, lower selling expenses, G&A
expenses and R&D expenses.
Net interest expenses were US$16.7
million for the three-month period ended September 30, 2019, compared to US$13.1 million in the same period of 2018,
representing an increase of 27.5% or US$3.6 million, primarily due to (i) the increase
of average loan interest rate from 4.01% of the same period in 2018
to 4.70% for the three-month period ended September 30, 2019 and partially offset by (ii)
the decrease of average short-term and long-term loan balance
in the amount of US$915.6 million for
the three-month period ended September 30,
2019 compared to US$936.2
million of the same period in 2018.
Income tax expenses were US$5.6
million for the three-month period ended September 30, 2019, representing an effective
income tax rate of 24.8%, compared to income tax benefit of
US$3.5 million in the same period of
2018, representing an effective income tax rate of -65.1%,
respectively. The increase of effective income tax rate was
primarily due to: i) the decrease of Sichuan Xinda's profit before
tax ("PBT") percentage within the consolidating entities; and ii)
the decrease of additional deduction of R&D expenses. The
effective income tax rate for the three-month period ended
September 30, 2019 differs from the
PRC statutory income tax rate of 25% primarily due to Sichuan
Xinda's preferential income tax rate, and 75% additional
deduction of R&D expenses of the major PRC operating
entities, partially offset by the increase of valuation allowance
against deferred income tax assets of certain subsidiaries, which
were at cumulative loss position.
Net income was a net income of US$17.0
million in the third quarter of 2019 compared to a net
income of US$9.0 million in the same
quarter of 2018, representing an increase of US$8.0 million, or 88.9%. Basic and diluted
earnings per share for the three-month period ended September 30, 2019 were both US$0.25, compared to US$0.13 basic and diluted earnings per share for
the same period of 2018. The average number of shares used in the
computation of basic and diluted earnings per share in the current
quarter was 51.8 million, compared to 50.9 million and 51.0 million
for basic and diluted earnings per share, respectively, in
the prior year period.
Earnings before interest, tax, depreciation and amortization
(EBITDA) was US$54.6 million for the
third quarter of 2019, compared to US$30.0
million for the same period of 2018, representing an
increase of US$24.6 million, or
82.0%. 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 September 30, 2019, the
Company had $235.1 million in the
total amount of cash, cash equivalents and restricted cash, a
decrease of $131.9 million or 35.9%
as compared to $367.0 million as of
December 31, 2018, primarily due to
cash outflows used in operating activities. As of the
September 30, 2019, working capital
was $89.8 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 0.9 as of December 31, 2018.
Stockholders' equity as of September 30,
2019 was $889.8 million, an
increase of $140.9 million or 18.8%
as compared to $748.9 million as of
December 31, 2018.
Inventories increased by 12.7% as a result of more purchases of
the raw materials and the Company's strategy to stock up the
finished goods for the upcoming orders. Prepaid expenses and other
current assets increased by 77.5% or US$102.4 million because (i) advances to
suppliers for purchasing raw materials increased by US$69.2 million; (ii) other receivables increased
by US$42.8 million; (iii) other
prepaid expenses decreased by US$9.6
million, which mainly included prepaid miscellaneous service
fee and staff advance, and value added taxes receivables. The
aggregate short-term and long-term bank loans increased by 6.5% due
to using the line of credits to support operating and investing
activities in HLJ Xinda Group and Sichuan Xinda. We define the
manageable debt level as the sum of aggregate short-term and
long-term loans over total assets.
Recent Development
(i) Xinda Holding (HK) Company Limited, a wholly owned
subsidiary of the Company, entered into a facility agreement on
October 2, 2019 for a loan facility
in an aggregate amount of US$135,000,000 with a consortium of banks and
financial institutions led by Industrial and Commercial Bank of
China (Macau) Limited.
(ii) On September 26, 2019, the
company delivered an irrevocable written notice pursuit to Section
6(C) (ii) of the Certificate of Designation, preferences and Rights
of Series D Junior Convertible Preferred Stock and exercised its
right for the mandatory conversion of 16,000,000 shares of Series D
Preferred Stock into 16,000,000 shares of common stock. As a
result, the term of office of MSPEA's two designees on the Board,
Homer Sun and Ryan Law, was automatically terminated. On
October 14, 2019, MSPEA sent a letter (the "Proposal Withdrawal
Letter") to the Board informing the Board that it no longer
intended to participate in the consortium consisting of Mr. Han ,
XD Engineering Plastics Company Limited, and MSPEA (the
"Consortium") and no longer intended to participate in the going
private transaction (the "Transaction"). Concurrently with
sending the Proposal Withdrawal Letter, MSPEA sent a letter (the
"Consortium Withdrawal Letter") to the other members of the
Consortium informing them that it no longer intended to participate
in the Consortium and no longer intended to participate in the
Transaction.
Financial Guidance and Business Outlook
In light of the current changing macroeconomic environment in
China, Chinese auto industry
market still showing certain decline and yet to come is the
trend reversal of automobile demand in China, the Company will continue to adopt the
policy of eliminating inventories and ensuring capital safety
during the fourth quarter of 2019. With the completion of
Heilongjiang base for upgrading
existing facilities, and the successful trial run in Dubai resulting in new production capacity to
be added, our expansion into new markets overseas, diversified
customer base and escalation of sales categories, the Company
updated its financial guidance for fiscal 2019 to range
$1.1 and $1.3
billion in revenue, net income to range between $70 and $90
million. It also assumes the average exchange rate of the US
dollar to RMB at 7.1. This financial guidance reflects the
Company's current view of its business outlook for fiscal 2019 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 14th, 2019, to discuss its
third quarter 2019 financial results. The conference call can
be accessed by dialing +1- 845-675- 0437 (for callers in the U.S.),
+86-4006- 208-038 (for Mainland China callers) or +852- 3018-6771
(for Hong Kong callers) and
entering passcode 3651209.
A recording of the conference call will be available through
November 22nd, 2019, by calling
+1-855-452-5696 (for callers in the U.S.) and entering pass code
3651209.
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.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 31 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, 2019, 595 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 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, the prospects of the Company's Harbin facility, and its penetration into
Northeast China; and its
penetration into Southwest China;
the Company's projections of its revenues for performance in fiscal
2019. 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.
- Financial Tables Follow -
The following table shows a reconciliation of cash, cash
equivalents and restricted cash on the condensed consolidated
balance sheets to that presented in the above condensed
consolidated statements of cash flows.
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
2019
|
|
2018
|
|
|
|
US$
|
|
US$
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
10,509,402
|
|
|
|
41,301,817
|
|
Restricted
cash
|
|
|
224,647,340
|
|
|
|
325,690,023
|
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
|
326,831,373
|
|
|
|
294,688,288
|
|
Inventories
|
|
|
699,002,558
|
|
|
|
620,033,195
|
|
Prepaid expenses and
other current assets
|
|
|
234,507,419
|
|
|
|
132,218,528
|
|
Total
current assets
|
|
|
1,495,498,092
|
|
|
|
1,413,931,851
|
|
Property, plant and
equipment, net
|
|
|
798,105,488
|
|
|
|
775,941,280
|
|
Land use rights,
net
|
|
|
28,465,372
|
|
|
|
29,796,795
|
|
Long-term prepayments
to equipment and construction suppliers
|
|
|
436,326,962
|
|
|
|
530,636,319
|
|
Operating lease
right-of-use assets, net
|
|
|
15,601,773
|
|
|
|
—
|
|
Other non-current
assets
|
|
|
801,296
|
|
|
|
3,212,986
|
|
Total
assets
|
|
|
2,774,798,983
|
|
|
|
2,753,519,231
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES,
REDEEMABLE CONVERTIBLE
PREFERRED STOCK AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Short-term bank
loans, including current portion of long-term
bank loans
|
|
|
619,522,749
|
|
|
|
729,666,920
|
|
Bills
payable
|
|
|
431,288,254
|
|
|
|
618,166,453
|
|
Accounts
payable
|
|
|
205,440,261
|
|
|
|
84,958,469
|
|
Amounts due to
related parties
|
|
|
28,444,767
|
|
|
|
18,365,738
|
|
Income taxes
payable
|
|
|
21,105,696
|
|
|
|
15,975,367
|
|
Operating lease
liabilities, current
|
|
|
1,390,531
|
|
|
|
—
|
|
Accrued expenses and
other current liabilities
|
|
|
98,503,263
|
|
|
|
126,926,898
|
|
Total
current liabilities
|
|
|
1,405,695,521
|
|
|
|
1,594,059,845
|
|
Long-term bank loans,
excluding current portion
|
|
|
276,518,446
|
|
|
|
111,808,244
|
|
Deferred
income
|
|
|
93,214,165
|
|
|
|
99,583,477
|
|
Operating lease
liabilities, non-current
|
|
|
14,513,462
|
|
|
|
—
|
|
Other non-current
liabilities
|
|
|
95,038,794
|
|
|
|
101,573,772
|
|
Total
liabilities
|
|
|
1,884,980,388
|
|
|
|
1,907,025,338
|
|
|
|
|
|
|
|
|
|
|
Redeemable Series
D convertible preferred stock (redemption
amount of nil and US$280,650,800 as of September 30, 2019
and December 31, 2018, respectively)
|
|
|
—
|
|
|
|
97,576,465
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Series B preferred
stock
|
|
|
100
|
|
|
|
100
|
|
Common stock,
US$0.0001 par value, 500,000,000 shares
authorized, 66,969,841 and 50,969,841 shares
issued, 66,948,841
and 50,948,841 shares outstanding as of September 30, 2019
and
December 31, 2018, respectively
|
|
|
6,697
|
|
|
|
5,097
|
|
Treasury stock,
21,000 shares at cost
|
|
|
(92,694)
|
|
|
|
(92,694)
|
|
Additional paid-in
capital
|
|
|
184,208,447
|
|
|
|
86,633,582
|
|
Retained
earnings
|
|
|
785,161,135
|
|
|
|
717,103,890
|
|
Accumulated other
comprehensive loss
|
|
|
(79,465,090)
|
|
|
|
(54,732,547)
|
|
Total
stockholders' equity
|
|
|
889,818,595
|
|
|
|
748,917,428
|
|
Commitments and
contingencies
|
|
|
—
|
|
|
|
—
|
|
Total
liabilities, redeemable convertible preferred stock and
stockholders' equity
|
|
|
2,774,798,983
|
|
|
|
2,753,519,231
|
|
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
|
|
|
Three-Month Period
Ended
September 30,
|
|
Nine-Month Period
Ended
September 30,
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
373,159,091
|
|
|
|
297,224,740
|
|
|
|
1,137,698,978
|
|
|
|
925,007,293
|
|
Cost of
revenues
|
|
|
(313,044,518)
|
|
|
|
(249,997,804)
|
|
|
|
(961,994,051)
|
|
|
|
(767,759,035)
|
|
Gross
profit
|
|
|
60,114,573
|
|
|
|
47,226,936
|
|
|
|
175,704,927
|
|
|
|
157,248,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
(431,070)
|
|
|
|
(2,741,156)
|
|
|
|
(956,300)
|
|
|
|
(7,354,876)
|
|
General and
administrative expenses
|
|
|
(5,999,123)
|
|
|
|
(8,117,769)
|
|
|
|
(20,539,101)
|
|
|
|
(28,341,545)
|
|
Research and
development expenses
|
|
|
(19,908,789)
|
|
|
|
(23,342,321)
|
|
|
|
(39,522,696)
|
|
|
|
(33,680,855)
|
|
Total
operating expenses
|
|
|
(26,338,982)
|
|
|
|
(34,201,246)
|
|
|
|
(61,018,097)
|
|
|
|
(69,377,276)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
33,775,591
|
|
|
|
13,025,690
|
|
|
|
114,686,830
|
|
|
|
87,870,982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
338,033
|
|
|
|
264,838
|
|
|
|
1,228,169
|
|
|
|
3,607,136
|
|
Interest
expense
|
|
|
(17,036,345)
|
|
|
|
(13,393,886)
|
|
|
|
(46,595,864)
|
|
|
|
(37,562,666)
|
|
Foreign currency
exchange gains
|
|
|
4,065,890
|
|
|
|
4,387,166
|
|
|
|
4,975,637
|
|
|
|
6,064,328
|
|
Losses on foreign
currency option
contracts
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(520,981)
|
|
Gains on disposal of
a subsidiary
|
|
|
—
|
|
|
|
—
|
|
|
|
518,491
|
|
|
|
—
|
|
Government
grant
|
|
|
1,405,284
|
|
|
|
1,145,703
|
|
|
|
5,111,437
|
|
|
|
4,001,746
|
|
Total
non-operating expense, net
|
|
|
(11,227,138)
|
|
|
|
(7,596,179)
|
|
|
|
(34,762,130)
|
|
|
|
(24,410,437)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
|
22,548,453
|
|
|
|
5,429,511
|
|
|
|
79,924,700
|
|
|
|
63,460,545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit
(expense)
|
|
|
(5,583,240)
|
|
|
|
3,535,430
|
|
|
|
(11,867,455)
|
|
|
|
(8,171,625)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
16,965,213
|
|
|
|
8,964,941
|
|
|
|
68,057,245
|
|
|
|
55,288,920
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
0.25
|
|
|
|
0.13
|
|
|
|
1.02
|
|
|
|
0.83
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
|
16,965,213
|
|
|
|
8,964,941
|
|
|
|
68,057,245
|
|
|
|
55,288,920
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment,
net of nil income taxes
|
|
|
(22,690,259)
|
|
|
|
(28,497,101)
|
|
|
|
(24,732,543)
|
|
|
|
(38,141,701)
|
|
Total
Comprehensive income
(losses)
|
|
|
(5,725,046)
|
|
|
|
(19,532,160)
|
|
|
|
43,324,702
|
|
|
|
17,147,219
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
Nine-Month Period
Ended
September
30,
|
|
|
|
2019
|
|
2018
|
|
|
|
US$
|
|
US$
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net cash (used in)
provided by operating activities
|
|
|
(183,155,418)
|
|
|
|
115,513,922
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchase of and
deposits for property, plant and equipment
|
|
|
(54,255,192)
|
|
|
|
(430,839,423)
|
|
Refund of prepayment
for building purchase
|
|
|
15,810,261
|
|
|
|
—
|
|
Net proceeds from
sales of a subsidiary
|
|
|
7,296,921
|
|
|
|
—
|
|
Proceeds from
maturity of time deposits
|
|
|
—
|
|
|
|
517,686,072
|
|
Purchase of time
deposits
|
|
|
—
|
|
|
|
(236,428,396)
|
|
Refund of deposit
from equipment suppliers
|
|
|
—
|
|
|
|
121,464,390
|
|
Deposits for
acquisition of equity
|
|
|
—
|
|
|
|
(3,640,688)
|
|
Refund of deposits
for acquisition of equity
|
|
|
—
|
|
|
|
15,577,880
|
|
Government grant
related to the construction of Sichuan plant
|
|
|
—
|
|
|
|
10,324,859
|
|
Net cash used in
investing activities
|
|
|
(31,148,010)
|
|
|
|
(5,855,306)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from bank
borrowings
|
|
|
1,647,171,688
|
|
|
|
719,994,473
|
|
Repayments of bank
borrowings
|
|
|
(1,569,203,033)
|
|
|
|
(757,018,030)
|
|
Proceeds from
interest-free advances from related parties
|
|
|
79,969,718
|
|
|
|
14,256,429
|
|
Repayments of
interest-free advances from related parties
|
|
|
(68,543,743)
|
|
|
|
—
|
|
Investment received
in advance from a related party
|
|
|
—
|
|
|
|
75,567,512
|
|
Refund of investment
received in advance from a related party
|
|
|
—
|
|
|
|
(75,567,512)
|
|
Net cash provided
by (used in) financing activities
|
|
|
89,394,630
|
|
|
|
(22,767,128)
|
|
Effect of foreign
currency exchange rate changes on cash, cash
equivalents and restricted cash
|
|
|
(6,926,300)
|
|
|
|
(19,528,082)
|
|
Net (decrease)
increase in cash, cash equivalents and restricted
cash
|
|
|
(131,835,098)
|
|
|
|
67,363,406
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
|
|
366,991,840
|
|
|
|
320,091,665
|
|
Cash, cash
equivalents and restricted cash at end of period
|
|
|
235,156,742
|
|
|
|
387,455,071
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
Interest paid, net of
capitalized interest
|
|
|
46,534,262
|
|
|
|
35,067,228
|
|
Income taxes
paid
|
|
|
7,951,724
|
|
|
|
16,866,842
|
|
Non-cash investing
activities:
|
|
|
|
|
|
|
|
|
Accrual for purchase
of equipment and construction included in
accrued expenses and other current liabilities
|
|
|
1,794,800
|
|
|
|
5,825,800
|
|
Non-cash financing
activities:
|
|
|
|
|
|
|
|
|
Conversion of Series
D preferred stock to common stock
|
|
|
97,576,465
|
|
|
|
—
|
|
|
The following table
shows a reconciliation of cash, cash equivalents and restricted
cash on the condensed
consolidated balance sheets to that presented in the above
condensed consolidated statements of cash flows.
|
|
|
|
September
30,
|
|
|
|
2019
|
|
2018
|
|
|
|
US$
|
|
US$
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
10,509,402
|
|
|
|
51,539,593
|
|
Restricted
cash
|
|
|
224,647,340
|
|
|
|
335,915,478
|
|
Total cash, cash
equivalents, and restricted cash shown in the
statement of cash
flows
|
|
|
235,156,742
|
|
|
|
387,455,071
|
|
CHINA XD PLASTICS
COMPANY LIMITED
|
Reconciliation of Net Income to
EBITDA
|
(Amounts expressed
in United States Dollars)
|
|
|
Three-Month Period
Ended
|
|
September
30,
|
|
2019
|
2018
|
|
|
|
Net income
-GAAP
|
$
16,965,213
|
$
8,964,941
|
Interest
expense
|
17,036,345
|
13,393,886
|
Provision for income
taxes
|
5,583,240
|
(3,535,430)
|
Depreciation and
amortization expense
|
14,815,533
|
11,157,560
|
Amortization of
operating lease right-of-use assets
|
159,068
|
-
|
EBITDA
|
54,559,399
|
29,980,957
|
View original
content:http://www.prnewswire.com/news-releases/specialty-chemical-company-china-xd-plastics-announces-third-quarter-2019-financial-results-300958309.html
SOURCE China XD Plastics Company Limited