HARBIN, China, Aug. 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 second quarter ended June 30,
2019.
Second Quarter 2019 Financial Summary
- Revenue was 463.1 million, an increase of 46.0% YoY and an
increase of 53.6% sequentially
- Gross profit was $65.3 million, an increase of 16.2% YoY,
and an increase of 29.8% sequentially
- Gross margin of 14.1%, a decrease of 360 basis points
YoY and 260 basis points sequentially
- Net income was $40.1 million, an increase of 47.4%
YoY and 264.5% sequentially
- EBITDA was $70.1 million, an
increase of 26.7% YoY and 47.3% sequentially
- Total volume shipped was 106,609 metric tons, an increase of
2.8% YoY and 12.9% sequentially
"We are pleased with our quarterly results with significant top
and bottom line growth." said Jie
Han, Chairman of the Board of Directors and Chief Executive
Officer. "During the first half of this year, we have witnessed
weakness in both production and sales of China's auto industry, trending low for 12
consecutive months. 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 second 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, evidenced by
our stable sales growth in all domestic regions. This
makes us well positioned to execute our strategic plan for 2019."
"We are particularly pleased to see more revenue contributions
from our successful trial production at our production base in
Dubai, a positive sign in our
effort of penetrating international market with our high-end
products. The growing sales overseas during the second quarter of
2019 broadened our geographical reach to customers in Europe, Middle
East, and other international regions. We will strive to
work with global high-quality customers in automotive sector and
other new fields."
"We take pride of our achievement in the past and remain
confident the long term prospect of our business. Chinese
government has recently issued supportive policies toward
non-state-owned enterprises. This will drive the success of the
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. Together with the
production capacity ramp up in Dubai, we remain confident in our ability to
make further inroads into more specialized high-end products for
various important new markets."
"We believe that our increased production capabilities in
Heilongjiang and Dubai, 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 innovative
technology solutions for China's
modernizing transportation, energy, healthcare and industrial
sectors. We reiterate our financial guidance for fiscal 2019 and
continue to be excited by our core market positioning and expanded
platform for growth," Mr. Han concluded.
Second Quarter 2019 Results
Revenues were US$463.1 million in
the second quarter ended June 30,
2019, an increase of US$145.8
million, or 46.0%, compared to US$317.3 million in the same period of last year.
This was due to approximately 51.4% increase in the average RMB
selling price, and 2.8% increase in sales volume, as compared with
those of the same period of last year, and partially offset by 9.5%
negative impact from exchange rate due to depreciation of RMB
against US dollars.
(i) Domestic market
For the three-month period ended June 30,
2019, revenue from domestic market increased by US$128.3 million due to: i) an increase of 48.3%
in the average RMB selling price of our products; ii) an increase
of 1.1% in sales volume as compared with those of last year; and
partially offset by iii) a depreciation of RMB against US dollars
by 9.5%.
According to the China Association of Automobile Manufacturers,
automobile production and sales in China decreased by 13.7% and 12.4%,
respectively, for the first half year of 2019 as compared to the
same period of 2018. The weakening in macroeconomic conditions
since summer of 2018 continued to exacerbate auto business
environment, but thanks to our positive efforts to expand our
customer bases and to meet their new requirements, the Company has
increased overall growth in all parts of China. We had sales growth of 118.9% in
Northeast China, 16.3% in
Central China, 12.1% in
Southern China, 11.9% in
North China, 8.7% in Southwest China and 4.3% in East China.
As for the RMB selling price, the increase of 48.3% 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 June 30,
2019.
(ii) Overseas market
For the three-month period ended June 30,
2019, revenues from overseas market was US$17.5 million as compared to US$53,353 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. 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 83.6% of revenues from sales of finished goods
in the second quarter of 2019, compared to 82.5% 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 PA6 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 June 30, 2019 in order to
accelerate inventory turnover and replenish operating funds.
Gross profit was US$65.3 million
in the second quarter ended June 30,
2019, compared to US$56.2
million in the same period of 2018, representing an increase
of 16.2% or US$9.1 million. Our
gross margin decreased to 14.1% during the second quarter ended
June 30, 2019 from 17.7% during the
same quarter of 2018 primarily due to the adopted
discounted-priced strategy on sales of work in progress in the
domestic market in order to return capital as compared to that
of the prior year.
General and administrative (G&A) expenses were US$5.8 million for the quarter ended June 30, 2019 compared to US$11.3 million in the same period in 2018,
representing a decrease of 48.7%, or US$5.5
million. The decrease was primarily due to our approach on
optimizing management structure and enhancing efficiency, leading
to the decrease of (i) US$2.5 million
in share based compensation incurred for external consultancy, (ii)
US$2.0 million in salary and welfare,
and (iii) US$1.0 million in
travelling, transportation and miscellaneous expense.
R&D expenses were US$9.6
million during the quarter ended June
30, 2019 compared with US$5.3
million during the same period in 2018, representing an
increase of US$4.3 million, or 81.1%.
This significant increase was primarily due to (i) elevated R&D
activities to meet the new higher specification requirements from
potential customers, especially overseas; 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 June 30, 2019, the number of ongoing research and
development projects was 371.
Operating income was $49.7 million
for the second quarter of 2019, compared to $36.0 million for the same period of 2018,
representing an increase of $13.7
million, or 38.1%. This increase is primarily due to higher
gross profit, lower selling expenses and G&A expenses,
partially offset by higher R&D expenses.
Net interest expenses were US$11.6
million for the three-month period ended June 30, 2019, compared to $10.3 million in the same period of 2018,
representing an increase of 12.6% or US$1.3
million, primarily due to (i) the increase of interest
expense resulting from the average loan interest rate increased to
5.2% for the three-month period ended June
30, 2019 compared to 4.6% of the same period in 2018; (ii)
the decrease of average deposit balance in amount of US$221.1 million for the three-month period ended
June 30, 2019 compared to
US$506.7 million for the same period
in prior year; (iii) the decrease of interest income resulting from
the average deposit interest rate decreased to 0.8% for the
three-month period ended June 30,
2019 compared to 1.1% of the same period in 2018; and
partially offset by (iv) the decrease of average short-term and
long-term loan balance in amount of US$882.5
million for the three-month period ended June 30, 2019 compared to US$925.0 million for the same period in 2018.
Income tax expense was $2.6
million for the second quarter of 2019, representing an
effective income tax rate of 6.2%, compared to income tax expense
of $5.5 million in the same period of
2018, representing an effective income tax rate of 16.8%. The
significant decrease of effective income tax rate was primarily due
to (i) the increase of additional deduction of R&D expenses
resulted from the increase of R&D expenses incurred and the new
policy issued by China's tax
authority in September 2018 to
increase the R&D expenses additional deduction rate from 50% to
75% for PRC entities, effective from January
1, 2018 to December 31, 2020,
(ii) the decrease of continuous operating losses occurred in
overseas subsidiaries such as Dubai Xinda and Xinda Holding (HK).
The effective income tax rate for the three-month period ended
June 30, 2019 differs from the PRC
statutory income tax rate of 25% primarily due to Sichuan Xinda's
preferential income tax rate, the reversal of the unrecognized tax
benefits accrued in year 2013 and 75% additional deduction of
R&D expenses of the major PRC operating entities.
Net income was $40.1 million for
the second quarter of 2019, compared to $27.2 million for the same period of 2018,
representing an increase of $12.9
million, or 47.4%. Basic and diluted earnings per share for
the three-month period ended June 30,
2019 were $0.60, compared to
$0.41 per basic and diluted 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 50.9 million compared to 50.3 million shares
for basic and diluted earnings per share in the prior year
period.
Earnings before interest, tax, depreciation and amortization
(EBITDA) were $70.1 million for the
second quarter of 2019, compared to $55.3
million for the same period of 2018, representing an
increase of $14.8 million, or
26.8%. For a detailed reconciliation of EBITDA, a non-GAAP
measure, to its nearest GAAP equivalent, please see the financial
tables at the end of this release.
Financial Condition
As of June 30, 2019, the Company
had $506.9 million in the total
amount of cash, cash equivalents and restricted cash, an increase
of $139.9 million or 38.1% as
compared to $367.0 million as of
December 31, 2018. As of the
June 30, 2019, working capital was
$35.2 million (current assets minus
current liabilities) and the current ratio (current assets divided
by current liabilities) was 1.0, as compared to the current ratio
of 0.9 as of December 31, 2018.
Stockholders' equity as of June 30,
2019 was $798.0 million, an
increase of $49.1 million or 6.6% as
compared to $748.9 million as of
December 31, 2018.
Cash, cash equivalents and restricted cash increased by 38.1% or
US$139.9 million due to the increase
of net cash provided by financing activities and operating
activities. Inventories increased by 18.4% 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 19.7% or US$26.0 million because (i) HLJ Xinda Group has
reclassified US$15.8 million of
long-term prepayments to Green River to receivables due from
Shanghai sales; (ii) advances to
suppliers for purchasing raw materials and receivables from Hong
Kong Grand Royal Trading Co., Ltd. increased by US$24.3 million and partially offset by (iii)
consideration for sales of Shanghai Sales decreased by US$7.3 million; (iv) other prepaid expenses
mainly including miscellaneous service fee and staff advance,
and value added taxes receivables decreased by US$6.8 million. The aggregate short-term and
long-term bank loans increased by 10.6% 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.
Financial Guidance and Business Outlook
In light of the current changing macroeconomic environment in
China, Chinese auto industry
market still showing certain decline though narrower, the Company
will continue to adopt the policy of eliminating inventories and
ensuring capital safety during the second half year 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 reiterates its financial guidance for
fiscal 2019 to range $1.3 and
$1.6 billion in revenue, net income
to range between $90 and $110 million. It also assumes the average
exchange rate of the US dollar to RMB at 7.0. 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 Wednesday,
August 14, 2019, to discuss its second 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
2594868.
A recording of the conference call will be available through
August 22, 2019, by calling
+1-855-452-5696 (for callers in the U.S.) and entering pass code
2594868.
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 June 30, 2019, 497 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
|
|
|
|
June
30,
|
|
|
December
31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
US$
|
|
|
US$
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
194,763,132
|
|
|
|
41,301,817
|
|
Restricted
cash
|
|
|
312,109,750
|
|
|
|
325,690,023
|
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
|
113,277,495
|
|
|
|
294,688,288
|
|
Amounts due from a
related party
|
|
|
278,370
|
|
|
|
-
|
|
Inventories
|
|
|
734,184,823
|
|
|
|
620,033,195
|
|
Prepaid expenses and
other current assets
|
|
|
158,318,331
|
|
|
|
132,218,528
|
|
Total
current assets
|
|
|
1,512,931,901
|
|
|
|
1,413,931,851
|
|
Property, plant and
equipment, net
|
|
|
824,360,375
|
|
|
|
775,941,280
|
|
Land use rights,
net
|
|
|
29,439,676
|
|
|
|
29,796,795
|
|
Long-term prepayments
to equipment and construction suppliers
|
|
|
448,633,091
|
|
|
|
530,636,319
|
|
Operating lease
right-of-use assets, net
|
|
|
15,760,841
|
|
|
|
-
|
|
Other non-current
assets
|
|
|
3,153,997
|
|
|
|
3,212,986
|
|
Total
assets
|
|
|
2,834,279,881
|
|
|
|
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
|
|
|
678,586,573
|
|
|
|
729,666,920
|
|
Bills
payable
|
|
|
576,257,873
|
|
|
|
618,166,453
|
|
Accounts
payable
|
|
|
115,275,006
|
|
|
|
84,958,469
|
|
Amounts due to
related parties
|
|
|
20,072,759
|
|
|
|
18,365,738
|
|
Income taxes
payable
|
|
|
18,314,186
|
|
|
|
15,975,367
|
|
Operating lease
liabilities, current
|
|
|
1,888,376
|
|
|
|
-
|
|
Accrued expenses and
other current liabilities
|
|
|
67,303,357
|
|
|
|
126,926,898
|
|
Total
current liabilities
|
|
|
1,477,698,130
|
|
|
|
1,594,059,845
|
|
Long-term bank loans,
excluding current portion
|
|
|
252,503,403
|
|
|
|
111,808,244
|
|
Deferred
income
|
|
|
97,121,826
|
|
|
|
99,583,477
|
|
Operating lease
liabilities, non-current
|
|
|
14,588,111
|
|
|
|
-
|
|
Other non-current
liabilities
|
|
|
96,824,770
|
|
|
|
101,573,772
|
|
Total
liabilities
|
|
|
1,938,736,240
|
|
|
|
1,907,025,338
|
|
|
|
|
|
|
|
|
|
|
Redeemable Series
D convertible preferred stock (redemption amount of
US$300,791,600 and US$280,650,800 as of June 30, 2019 and
December 31, 2018,
respectively)
|
|
|
97,576,465
|
|
|
|
97,576,465
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Series B preferred
stock
|
|
|
100
|
|
|
|
100
|
|
Common stock,
US$0.0001 par value, 500,000,000 shares authorized, 50,969,841
shares
issued, 50,948,841 shares outstanding as of June 30,
2019 and December 31, 2018,
respectively
|
|
|
5,097
|
|
|
|
5,097
|
|
Treasury stock,
21,000 shares at cost
|
|
|
(92,694)
|
|
|
|
(92,694)
|
|
Additional paid-in
capital
|
|
|
86,633,582
|
|
|
|
86,633,582
|
|
Retained
earnings
|
|
|
768,195,922
|
|
|
|
717,103,890
|
|
Accumulated other
comprehensive loss
|
|
|
(56,774,831)
|
|
|
|
(54,732,547)
|
|
Total
stockholders' equity
|
|
|
797,967,176
|
|
|
|
748,917,428
|
|
Commitments and
contingencies
|
|
|
-
|
|
|
|
-
|
|
Total
liabilities, redeemable convertible preferred stock and
stockholders' equity
|
|
|
2,834,279,881
|
|
|
|
2,753,519,231
|
|
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(LOSS)
|
|
|
|
Three-Month Period
Ended
June 30,
|
|
|
Six-Month Period
Ended
June 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
463,073,880
|
|
|
|
317,329,520
|
|
|
|
764,539,887
|
|
|
|
627,782,553
|
|
Cost of
revenues
|
|
|
(397,813,194)
|
|
|
|
(261,175,654)
|
|
|
|
(648,949,533)
|
|
|
|
(517,761,231)
|
|
Gross
profit
|
|
|
65,260,686
|
|
|
|
56,153,866
|
|
|
|
115,590,354
|
|
|
|
110,021,322
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
(247,410)
|
|
|
|
(3,562,711)
|
|
|
|
(525,230)
|
|
|
|
(4,613,720)
|
|
General and
administrative expenses
|
|
|
(5,764,593)
|
|
|
|
(11,348,767)
|
|
|
|
(14,539,978)
|
|
|
|
(20,223,776)
|
|
Research and
development expenses
|
|
|
(9,551,721)
|
|
|
|
(5,288,636)
|
|
|
|
(19,613,907)
|
|
|
|
(10,338,534)
|
|
Total
operating expenses
|
|
|
(15,563,724)
|
|
|
|
(20,200,114)
|
|
|
|
(34,679,115)
|
|
|
|
(35,176,030)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
49,696,962
|
|
|
|
35,953,752
|
|
|
|
80,911,239
|
|
|
|
74,845,292
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
454,357
|
|
|
|
1,029,675
|
|
|
|
890,136
|
|
|
|
3,342,298
|
|
Interest
expense
|
|
|
(12,059,242)
|
|
|
|
(11,274,575)
|
|
|
|
(29,559,519)
|
|
|
|
(24,168,780)
|
|
Foreign currency
exchange gains
|
|
|
3,050,612
|
|
|
|
5,632,970
|
|
|
|
909,747
|
|
|
|
1,677,162
|
|
Losses on foreign
currency option contracts
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(520,981)
|
|
Gains on disposal of
a subsidiary
|
|
|
-
|
|
|
|
-
|
|
|
|
518,491
|
|
|
|
-
|
|
Government
grant
|
|
|
1,611,216
|
|
|
|
1,378,484
|
|
|
|
3,706,153
|
|
|
|
2,856,043
|
|
Total
non-operating expense, net
|
|
|
(6,943,057)
|
|
|
|
(3,233,446)
|
|
|
|
(23,534,992)
|
|
|
|
(16,814,258)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
|
42,753,905
|
|
|
|
32,720,306
|
|
|
|
57,376,247
|
|
|
|
58,031,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
(2,642,588)
|
|
|
|
(5,496,228)
|
|
|
|
(6,284,215)
|
|
|
|
(11,707,055)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
40,111,317
|
|
|
|
27,224,078
|
|
|
|
51,092,032
|
|
|
|
46,323,979
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
0.60
|
|
|
|
0.41
|
|
|
|
0.76
|
|
|
|
0.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
|
40,111,317
|
|
|
|
27,224,078
|
|
|
|
51,092,032
|
|
|
|
46,323,979
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of nil
income taxes
|
|
|
(16,713,085)
|
|
|
|
(39,306,010)
|
|
|
|
(2,042,284)
|
|
|
|
(9,644,600)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income (loss)
|
|
|
23,398,232
|
|
|
|
(12,081,932)
|
|
|
|
49,049,748
|
|
|
|
36,679,379
|
|
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
Six-Month Period
Ended June 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
US$
|
|
|
US$
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net cash provided
by operating activities
|
|
|
92,864,032
|
|
|
|
152,600,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Proceeds from
maturity of time deposits
|
|
|
-
|
|
|
|
388,105,630
|
|
Purchase of time
deposits
|
|
|
-
|
|
|
|
(210,380,884)
|
|
Purchase of and
deposits for property, plant and equipment
|
|
|
(52,396,204)
|
|
|
|
(334,739,673)
|
|
Refund of deposit
from an equipment supplier
|
|
|
-
|
|
|
|
60,054,417
|
|
Deposits for
acquisition of equity
|
|
|
-
|
|
|
|
(3,640,688)
|
|
Government grants
related to the construction projects
|
|
|
-
|
|
|
|
10,558,608
|
|
Proceeds from sales
of a subsidiary
|
|
|
7,376,807
|
|
|
|
-
|
|
Cash disposed for
sales of a subsidiary
|
|
|
(3,202)
|
|
|
|
-
|
|
Net cash used in
investing activities
|
|
|
(45,022,599)
|
|
|
|
(90,042,590)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from bank
borrowings
|
|
|
1,400,043,299
|
|
|
|
470,494,396
|
|
Repayments of bank
borrowings
|
|
|
(1,307,643,944)
|
|
|
|
(587,236,484)
|
|
Investment received
in advance from a related party
|
|
|
-
|
|
|
|
75,567,512
|
|
Proceeds from
interest-free advances from related parties
|
|
|
67,389,859
|
|
|
|
-
|
|
Repayments of
interest-free advances from related parties
|
|
|
(65,152,460)
|
|
|
|
-
|
|
Net cash provided
by (used in) financing activities
|
|
|
94,636,754
|
|
|
|
(41,174,576)
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign
currency exchange rate changes on cash, cash equivalents and
restricted
cash
|
|
|
(2,597,145)
|
|
|
|
(5,499,604)
|
|
Net increase in
cash, cash equivalents and restricted cash
|
|
|
139,881,042
|
|
|
|
15,884,147
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
506,872,882
|
|
|
|
335,975,812
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
Interest paid, net of
capitalized interest
|
|
|
29,586,602
|
|
|
|
23,267,235
|
|
Income taxes
paid
|
|
|
6,067,051
|
|
|
|
12,906,780
|
|
Non-cash investing
and financing activities:
|
|
|
|
|
|
|
|
|
Accrual for purchase
of equipment and construction included in accrued expenses and
other
current liabilities
|
|
|
1,721,729
|
|
|
|
6,057,014
|
|
|
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.
|
|
|
|
June
30,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
US$
|
|
|
US$
|
|
Cash and cash
equivalents
|
|
|
194,763,132
|
|
|
|
72,721,460
|
|
Restricted
cash
|
|
|
312,109,750
|
|
|
|
263,254,352
|
|
Total cash, cash
equivalents, and restricted cash shown in the
statement of cash flows
|
|
|
506,872,882
|
|
|
|
335,975,812
|
|
CHINA XD PLASTICS
COMPANY LIMITED
|
Reconciliation of
Net Income to EBITDA
|
(Amounts expressed
in United States Dollars)
|
|
|
Three-Month Period
Ended
|
|
June
30,
|
|
2019
|
2018
|
|
|
|
Net income
-GAAP
|
$
40,111,317
|
$
27,224,078
|
Interest
expense
|
12,059,242
|
11,274,575
|
Provision for income
taxes
|
2,642,588
|
5,496,228
|
Depreciation and
amortization expense
|
15,143,020
|
11,348,832
|
Amortization of
operating lease right-of-use
assets
|
157,806
|
-
|
EBITDA
|
70,113,973
|
55,343,713
|
View original
content:http://www.prnewswire.com/news-releases/specialty-chemical-company-china-xd-plastics-announces-second-quarter-2019-financial-results-300901540.html
SOURCE China XD Plastics Company Limited