HARBIN, China, March 26, 2014 /PRNewswire/ -- China XD
Plastics Company Limited (NASDAQ: CXDC, "China XD Plastics" or the
"Company"), one of China's leading
specialty chemical players engaged in the development, manufacture
and sale of modified plastics primarily for automotive
applications, today announced its financial results for the fourth
quarter and the full year ended December 31,
2013.
Full Year 2013 Financial Highlights
- Revenue was $1,050.8 million, an
increase of 75.2% from $599.8 million
in 2012
- Gross profit was $223.4 million,
an increase of 55.4% from $143.8
million in 2012
- Gross profit margin was 21.3%, compared to 24.0% in 2012
- Net income was $133.8 million,
compared to $85.9 million in
2012
- Total volume shipped was 337,189 metric tons, up 50.5% from
223,982 metric tons in 2012
Fourth Quarter Fiscal 2013 Highlights
- Revenue was $384.6 million, an
increase of 128.1% from $168.6
million in the fourth quarter of fiscal 2012
- Gross profit was $91.4 million,
an increase of 145.2% from $$37.3 million in the fourth quarter of
fiscal 2012
- Gross profit margin was 23.8%, compared to 22.1% in the fourth
quarter of fiscal 2012
- Net income was $57.5 million,
compared to $17.3 million in the
fourth quarter of fiscal 2012
- Total volume shipped was 115,650 metric tons, up 84.5% from
62,692 metric tons in the fourth quarter of fiscal 2012
"We are pleased to report the strong performance of the fourth
quarter and the full year for 2013," said Jie Han, Chairman of Board of Director and Chief
Executive Officer of China XD. The accelerated growth reflected
China XD's strong execution of our market share gaining strategy,
which translated into our solid revenue and earnings growth and
positive business development. Although our gross profit margin
declined for the twelve-month period ended December 31, 2013 mainly due to our marketing
strategy such as discounts on listed prices since the fourth
quarter of 2012, such strategy has further cemented our position in
East China, the largest automobile market in China with tremendous progress in market
penetration achieved. Revenues from East China and North China during the fourth quarter of
fiscal 2013 increased by 208.5% and 137.4%, respectively, compared
to revenues during the fourth quarter of fiscal 2012. Furthermore,
we continued our entry into Southwest
China market on a solid footing with 3.7% revenue
contribution from the region during the year ended December 31, 2013. The recovery of gross profit
margin continued to 23.8% during the fourth quarter of fiscal 2013,
following the trend of the second quarter, primarily due to our
continuing and steady shift to higher margin products. We are
encouraged by the results and will continue our investments in our
business. As previously announced in December 2013, we broke ground on the
construction of our fourth production base in Nanchong City,
Sichuan Province, which is
expected to be completed by the end of 2015, with additional
300,000 metric tons of annual production capacity and an additional
70 automatic production lines to be stationed in state-of-the-art
facilities, expecting to bring our total installed production
capacity to 690,000 metric tons to support our future business
growth. "
Full Year 2013 Financial Results
Revenues for the fiscal year 2013 were $1,050.8 million, representing a year-over-year
increase of 75.2% from $599.8 million
in the fiscal year 2012. The increase in revenues was due to a
50.5% increase in sales volume and a 14.6% increase in the average
RMB selling price of our products, driven by increasing demand for
automotive modified plastics used in the plastic parts of mid- and
high-end branded automobiles by major customers of the Company's
products, and a shift in product mix to include a greater
percentage of sales of higher margin and higher value-added
products. For the fiscal year 2013, sales of higher margin
products represented 72.6% of revenues, compared to 52.0% of
revenues in the fiscal year 2012.
Gross profit for the fiscal year 2013 was $223.4 million, up 55.4% from $143.8 million in fiscal year of 2012. Gross
margin was 21.3% compared to 24.0% in fiscal year of 2012.
(i) The decrease of gross profit margin was
primarily due to an average 5.8% discount on the listed prices
for the twelve-month period ended December
31, 2013 for distributors as part of our marketing
initiatives to increase our market share in Eastern China and Southwestern
China. The discount is primarily aimed at further
expanding into the Eastern China
and Southwestern China markets. As
a result, revenues contribution from Eastern China and Southwestern China grew to 31.2% and 3.7% of
our total sales during the year ended December 31, 2013 compared to 22% and nil in the
same period of 2012, respectively.
(ii) The decrease in gross margin was also due to
the increase in shipping expenses to US$16.0
million in the year ended December
31, 2013 from US$2.1 million
in the same period of the prior year. Since the first quarter
of fiscal 2013, we started bearing the shipping expenses, which is
a part of our marketing tactic to grow market share since the
first quarter of 2013. Such arrangement is expected to continue in
the future.
Gross margins recovered after the first quarter of 2013 due to
the increase of revenues contribution from higher-ended products,
such as engineering plastics, alloy plastics and environmentally
friendly plastics as we were able to successfully sell more
higher-end products to both existing and new customers. We expect
the trend of gross margin recovery to continue in 2014 as we shift
our product mix towards higher-end categories.
G&A expenses were $16.3
million, or 1.6% of revenues, compared to $10.0 million, or 1.7% of the revenues of the
same period of 2012. This increase is primarily due to the increase
of (i) US$ 2.4 million of share based compensation; (ii)
US$ 0.9 million of travel and office
expenses associated with the business expansion;(iii) US$ 0.7 million of fixed assets deprecation; (iv)
US$ 0.6 million of professional fees
and (v) US$ 0.6 million of non-income
taxation.
Research and development ("R&D") expenses were $21.3 million, or 2.0% of the total revenues,
compared to $21.6 million, or 3.6% of
the total revenues of the same period of 2012. R&D expenses in
2013 was due to decreased expenses associated with the early
conclusion of some research and development experiments after our
R&D strategic review based on our refined R&D strategy
planning and recalibration of our R&D efforts to target more
longer-term but higher-end products, including carbon fiber,
specialty engineering plastics, bio-plastics, alloy plastics and 3D
printing materials for applications in fields such as aerospace,
high-speed train, biological and medical fields. During the year
ended December 31, 2013, the Company
successfully launched 37 new automobile manufacturers certified
products ("AMCP"), as a result of which the Company's total number
of AMCP has increased to 283.
Operating income for the fiscal year 2013 was $185.6 million, or 17.7% of revenues, an increase
of 65.9% over operating income of $111.9
million, or 18.7% of revenues, in the same period of the
prior year due to higher gross profit, offset by higher general and
administrative expenses.
Net income for the fiscal year 2013 was $133.8 million, compared to a net income of
$85.9 million for the same period of
the prior year.
Basic and diluted earnings per share were $2.08.
Basic average numbers of shares used in computation of basic
earnings per share for the fiscal year 2013 was 47.8 million,
compared to 47.5 million in the same period of the prior year.
Weighted average numbers of shares used in computation of
diluted earnings per share for the fiscal year 2013 was 47.8
million, compared to 47.5 million in the same period of the prior
year.
EBITDA (Earnings before Interest, Taxes, Depreciation, and
Amortization) for the fiscal year 2013 was $217.2 million, an increase of 66.2% from EBITDA
of $130.7 million in the same period
of the prior year. 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.
Fourth Quarter 2013 Results
Revenues for the fourth quarter of fiscal 2013 were $384.6 million, representing a year-over-year
increase of 128.1% from $168.6
million in the fourth quarter of fiscal 2012. The increase
in revenues was due to a 84.5% increase in sales volume, and 22.0%
increase in average RMB selling price of our products, driven by
increasing demand for automotive modified plastics used in the
parts of mid- and high-end branded automobiles by the Company's
major customers.
Gross profit for the fourth quarter of fiscal 2013 was
$91.4 million, up 145.2% from
$37.3 million in the same period of
fiscal 2012. Gross margin was 23.8% compared to 22.1% in the same
period last year. The increase of gross margin was due to the
increase of revenues contribution from higher-ended products, such
as engineering plastics, alloy plastics and environmentally
friendly plastics as we were able to successfully sell more
higher-end products to both existing and new customers. For the
fourth quarter of fiscal 2013, sales of higher margin products
represented 75.8% of product revenues, compared to 59.2% of product
revenues in the same period of 2012.
G&A expenses were $5.5
million, or 1.4% of total revenues compared to $2.5 million, or 1.5% of total revenues for the
same period of the prior year. This increase in G&A is
primarily due to the increase of (i) US$ 1.5 million of
share based compensation; (ii) US$ 0.6
million of salary and salary insurance;(iii) US$ 0.2 million of professional fees and (v)
US$ 0.2 million of non-income
taxation.
R&D expenses were 5.3 million, or 1.4% of total revenues,
compared to $9.0 million, or 5.4% of
total revenues, in the same period last year. R&D expenses was
due to decreased expenses associated with the early conclusion of
some research and development experiments after our R&D
strategic review based on our refined R&D strategy planning and
recalibration of our R&D efforts to target more longer-term but
higher-end products, including carbon fiber, specialty engineering
plastics, bio-plastics, alloy plastics and 3D printing materials
for applications in fields such as aerospace, high-speed train,
biological and medical fields. During the fourth quarter of 2013,
the Company successfully launched nine new AM certified products
and increased its total number of AM certified products to 283,
with another 38 new products under research and development.
Operating income for the fourth quarter of fiscal 2013 was
$80.6 million, or 21.0% of revenues,
an increase of 212.4% over operating income from $25.7 million, or 15.3% of revenues in the same
period a year ago.
Net income for the fourth quarter of fiscal 2013 was
$57.5 million, compared to a net
income of $17.3 million for the same
period of the prior year.
Basic and diluted earnings per share were $0.89, which represent significant increase when
compared to last year's results, which was at $0.36, respectively.
Basic average numbers of shares used in computation of basic
earnings per share for the three months ended December 31, 2013 was 47.9 million, compared to
47.6 million for the same period of the prior year.
Weighted average numbers of shares used in computation of
diluted earnings per share for the three months ended December 31, 2013 was 47.9 million, compared to
47.6 million in the same period of the prior year.
EBITDA (Earnings before Interest, Taxes, Depreciation, and
Amortization) for the fourth quarter of 2013 was $88.8 million, an increase of 191.9% from
$30.4 million in the same period last
year. For a detailed reconciliation of EBITDA, a non-GAAP
measure, to its nearest GAAP equivalent, please see the financial
tables at the end of this release.
Financial Condition
As of December 31, 2013, China XD
Plastics had $95.5 million in cash
and cash equivalents, $281.3 million
in time deposits with commercial banks, $289.2 million in working capital and a current
ratio of 1.5. Stockholders' equity as of December 31, 2013 was $412.3 million, compared to $264.4 million as of December 31, 2012.
Accounts receivable increased by 96.3% as a result of the
increase in revenues and the increase in days sales outstanding
("DSO") from 56 days for the fiscal year 2012 to 72 days for the
fiscal year 2013. However, DSO decreased in fourth quarter of
fiscal 2013 to 63 days from 64 days in the same period of the prior
year and 71 days in the third quarter of fiscal 2013, reflecting
our collection efforts and ability to improve our working capital.
Inventory increased by 85.1% due to the anticipation of the
increase of customer demand in the following quarters.Inventory
Turnover Days for the fiscal year 2013 remains the same at 49 days
from the same period of the prior year. Accounts payable increased
by 1,625.4% and days payable outstanding in fiscal year 2013
increased to 28 days from 18 days in the same period of the prior
year due to the extended payment term renegotiated with our
domestic raw material suppliers, a shift from prepayment to
suppliers in the past, in order to strengthen our working
capital.
Recent Developments
On January 24, 2014, the Company's
wholly owned subsidiary, Favor Sea Limited (the "Note Issuer"),
priced its international offering of guaranteed senior notes. The
offering consists of US$150 million
aggregate principal amount of 11.75% guaranteed senior notes due in
2019 (the "Notes"). The Notes have been listed and quoted on
the Singapore Stock Exchange with effect from 9.00 a.m., February 5,
2014. The Note Issuer intends to use the net proceeds
from the offering for repayment of indebtedness incurred by its PRC
subsidiaries, for capital expenditure on a production base in
Sichuan and for general corporate
purposes. The Notes are guaranteed on a senior basis by the
Company and Xinda Holding (HK) Company Limited, a subsidiary wholly
owned by the Note Issuer (the "Subsidiary Guarantor"). The Notes
are secured by a pledge of the shares of the Note Issuer held by
the Company and a pledge of the shares of the Subsidiary Guarantor
held by the Note Issuer.
On January 27, 2014, the Company
filed an Amended and Restated Certificate of Designation,
Preferences and Rights of Series D Junior Convertible Preferred
Stock of the Company with the Secretary of State of the
State of Nevada to, among other
things, extend the maturity date of the Series D preferred stock to
February 4, 2019, the maturity date
of the Notes issued by Favor Sea Limited, and, remove the fiscal
year 2013 Actual Profit Target of RMB
608 million of the Company as a trigger for the holders of
Series D convertible preferred stock to require the Company to
redeem all or a portion of the outstanding Series D convertible
preferred stock.
On December 23, 2013, the Company
announced it broke ground on a 300,000 tons polymer composites
production and R&D project in Southwest China that would expand production
capacity by 300,000 metric tons and be equipped with a professional
research and development center and an independent training
center.
On December 5, 2013, the Company
announced and celebrated the relocation of its R&D center, a
National Enterprise Technology Center, specialized in the R&D
and industrialization of leading edge macromolecule composite
material products used in the applications for automobiles,
high-speed trains, airplanes and ships, to a new site in its third
production base in Harbin.
On December 5, 2013, the Company
announced the successful completion of its 6th Annual Seminar on
the Development of the Macromolecule Materials Industry held in
Harbin, China from December 2 to December 3, 2013. The annual
seminar gives industry experts an opportunity to review and
evaluate the Company's R&D initiatives in terms of technology
advancement on the backdrop of government policies, which support
development of the modified plastics industry. The seminar was
attended by the Company's senior management and R&D staff,
academicians and leading macromolecule materials industry
experts.
Business Outlook and Guidance
Given the Company's solid performance during the fiscal year
2013 and stable outlook on customer demand for its products and
business development for 2014, the Company now expects revenues for
fiscal 2014 to range between $950 million
and $1.05 billion based on the same production capacity and
similar utilization rate as 2013 and net income to range between
$100 million to $120 million to
reflect the additional costs (approximately US$16.2 million) associated with the Notes
offered in February 4, 2014. This
forecast is based on constant exchange rates and reflects the
Company's current and preliminary view, which is subject to
change.
Conference Call
China XD Plastics' management will host a conference call at
8:30 a.m. ET on Wednesday, March 26, 2014, to discuss its fourth
quarter and full year 2013 financial results. The conference call
may be accessed by calling +1-855-298-3404 (for callers in the
U.S.), +86-4001-200-539 (for Mainland China callers) or
+852-5808-3202 (for Hong Kong
callers) and entering pass
code 6605821.
A recording of the conference call will be available through
April 3, 2014, by +1-866-846-0868
(for callers in the U.S.) and entering pass code 6605821.
A live webcast and replay of the conference call will be
available on the investor relations page of the Company's website
at http://www.chinaxd.net.
About China XD Plastics Company Limited
China XD Plastics Company Limited, through its wholly-owned
subsidiaries (the "Company"), develops, manufactures and sells
composite materials, primarily for automotive applications. The
Company's products are used in the exterior and interior trim and
in the functional components of 24 automobile brands manufactured
in China, including AUDI, BMW, Toyota, Buick, Mazda, and VW
Passat, Golf, and Jetta. The Company's wholly-owned research center
is dedicated to the research and development of modified plastics,
and benefits from its cooperation with well-known scientists from
prestigious universities in China. As of December 31, 2013, 283 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 http://www.chinaxd.net.
Safe Harbor Statement
This announcement contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All statements other than statements
of historical fact in this announcement are forward-looking
statements, including but not limited to, the Company's ability to
raise additional capital to finance the Company's activities; the
Company's and its subsidiaries' ability to fully perform all of
their obligations under the Notes transaction and other contractual
obligations applicable to them; the effectiveness, profitability,
and the marketability of its products; legal and regulatory risks;
the Company's ability to execute its growth strategy and the
effectiveness of its marketing strategy; the future trading of the
common stock of the Company; the Company's ability to operate as a
public company; the period of time for which its current liquidity
will enable the Company to fund its operations; the Company's
ability to protect its proprietary information; general economic
and business conditions; the volatility of the Company's operating
results and financial condition; the Company's ability to attract
or retain qualified senior management personnel and research and
development staff; and other risks detailed in the Company's
filings with the Securities and Exchange Commission and available
on its website at http://www.sec.gov. These forward-looking
statements involve known and unknown risks and uncertainties and
are based on current expectations, assumptions, estimates and
projections about the Company and the industry. The Company
undertakes no obligation to update forward-looking statements to
reflect subsequent occurring events or circumstances, or to changes
in its expectations, except as may be required by law. Although the
Company believes that the expectations expressed in these forward
looking statements are reasonable, it cannot assure you that its
expectations will turn out to be correct, and investors are
cautioned that actual results may differ materially from the
anticipated results.
Contacts:
China XD Plastics
Mr. Taylor
Zhang, CFO (New York)
Phone: +1-212-747-1118
Email: cxdc@chinaxd.net
- Financial Tables Follow -
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
|
|
|
December
31,
|
|
2013
|
|
2012
|
|
US$
|
|
US$
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
95,545,904
|
|
83,822,602
|
Restricted
cash
|
13,708,971
|
|
16,915,359
|
Time
deposits
|
281,343,641
|
|
47,955,923
|
Accounts receivable,
net of allowance for doubtful accounts
|
282,320,819
|
|
143,843,764
|
Amounts due from a
related party
|
225,752
|
|
219,360
|
Inventories
|
144,885,688
|
|
78,263,071
|
Prepaid expenses and
other current assets
|
8,418,143
|
|
6,090,232
|
Total current
assets
|
826,448,918
|
|
377,110,311
|
Property, plant and
equipment, net
|
233,841,735
|
|
223,780,133
|
Land use rights,
net
|
12,457,001
|
|
10,524,451
|
Other non-current
assets
|
3,158,974
|
|
169,414
|
Total
assets
|
1,075,906,628
|
|
611,584,309
|
LIABILITIES,
REDEEMABLE CONVERTIBLE PREFERRED STOCKS AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term
loans
|
314,682,620
|
|
162,076,050
|
Bills
payable
|
25,604,176
|
|
15,810,340
|
Accounts
payable
|
122,457,396
|
|
7,061,259
|
Income taxes
payable
|
18,631,698
|
|
8,511,679
|
Accrued expenses and
other current liabilities
|
55,893,004
|
|
34,442,983
|
Total current
liabilities
|
537,268,894
|
|
227,902,311
|
Income taxes
payable
|
8,224,057
|
|
-
|
Deferred income tax
liabilities
|
19,428,706
|
|
20,733,959
|
Warrants
liability
|
1,063,401
|
|
1,008,750
|
Total
liabilities
|
565,985,058
|
|
249,645,020
|
Redeemable Series
D convertible preferred stock
|
97,576,465
|
|
97,576,465
|
Stockholders'
equity:
|
|
|
|
Series B preferred
stock
|
100
|
|
100
|
Common
stock
|
4,789
|
|
4,758
|
Treasury stock,
21,000 shares at cost
|
(92,694)
|
|
(92,694)
|
Additional paid-in
capital
|
76,341,659
|
|
72,583,910
|
Retained
earnings
|
311,047,337
|
|
177,208,492
|
Accumulated other
comprehensive income
|
25,043,914
|
|
14,658,258
|
Total
stockholders' equity
|
412,345,105
|
|
264,362,824
|
Commitments and
contingencies
|
|
|
|
Total liabilities, redeemable convertible preferred stocks and stockholders' equity
|
1,075,906,628
|
|
611,584,309
|
CHINA XD PLASTICS COMPANY LIMITED AND
SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
Years
Ended
December 31,
|
|
Three
Months
Ended December 31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
|
|
|
|
|
Revenues
|
1,050,816,364
|
|
599,818,968
|
|
384,559,386
|
|
168,610,559
|
Cost of
revenues
|
(827,419,861)
|
|
(456,011,715)
|
|
(293,169,173)
|
|
(131,334,862)
|
Gross
profit
|
223,396,503
|
|
143,807,253
|
|
91,390,213
|
|
37,275,697
|
|
|
|
|
|
|
|
|
Selling
expenses
|
(243,975)
|
|
(273,289)
|
|
9,590
|
|
(13,138)
|
General and
administrative expenses
|
(16,284,528)
|
|
(10,069,273)
|
|
(5,508,933)
|
|
(2,471,981)
|
Research and
development expenses
|
(21,258,549)
|
|
(21,586,074)
|
|
(5,332,251)
|
|
(9,049,335)
|
Total operating
expenses
|
(37,787,052)
|
|
(31,928,636)
|
|
(10,831,594)
|
|
(11,534,454)
|
|
|
|
|
|
|
|
|
Operating
income
|
185,609,451
|
|
111,878,617
|
|
80,558,619
|
|
25,741,243
|
|
|
|
|
|
|
|
|
Interest
income
|
6,788,243
|
|
4,601,336
|
|
2,546,038
|
|
775,159
|
Interest
expense
|
(15,250,780)
|
|
(4,627,014)
|
|
(4,440,559)
|
|
(2,071,915)
|
Foreign currency
exchange gains
|
2,519,486
|
|
561,829
|
|
602,860
|
|
552,703
|
Government
grant
|
924,216
|
|
114,385
|
|
4,470
|
|
114,385
|
Change in fair value
of warrants liability
|
(54,651)
|
|
2,854,177
|
|
(362,753)
|
|
136,867
|
Change in fair value
of embedded derivative
liability
|
-
|
|
610
|
|
-
|
|
63
|
Total non-operating income
(expense), net
|
(5,073,486)
|
|
3,505,323
|
|
(1,649,944)
|
|
(492,738)
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
180,535,965
|
|
115,383,940
|
|
78,908,675
|
|
25,248,505
|
|
|
|
|
|
|
|
|
Income tax
expense
|
(46,697,120)
|
|
(29,516,193)
|
|
(21,388,864)
|
|
(7,988,542)
|
|
|
|
|
|
|
|
|
Net income
|
133,838,845
|
|
85,867,747
|
|
57,519,811
|
|
17,259,963
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
Basic
|
2.08
|
|
1.35
|
|
0.89
|
|
0.36
|
Diluted
|
2.08
|
|
1.35
|
|
0.89
|
|
0.36
|
|
|
|
|
|
|
|
|
Net
Income
|
133,838,845
|
|
85,867,747
|
|
57,519,811
|
|
17,259,963
|
|
|
|
|
|
|
|
|
Other
comprehensive income
|
|
|
|
|
|
|
|
Foreign currency translation adjustment, net of nil
income taxes
|
10,385,656
|
|
3,180,381
|
|
4,977,645
|
|
2,366,030
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
144,224,501
|
|
89,048,128
|
|
62,497,456
|
|
19,625,993
|
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
Year Ended December 31,
|
|
|
2013
|
|
|
2012
|
|
|
US$
|
|
|
US$
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net income
|
|
|
133,838,845
|
|
|
|
85,867,747
|
Adjustments to
reconcile net income to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
Net provision
(reversal) for doubtful accounts
|
|
|
(2,293)
|
|
|
|
34,491
|
Depreciation and
amortization
|
|
|
21,420,723
|
|
|
|
10,705,037
|
Stock-based
compensation
|
|
|
3,757,780
|
|
|
|
1,393,255
|
Change in fair value
of embedded derivative liability
|
|
|
-
|
|
|
|
(610)
|
Change in fair value
of warrants liability
|
|
|
54,651
|
|
|
|
(2,854,177)
|
Foreign currency
exchange gains
|
|
|
(2,519,486)
|
|
|
|
(561,829)
|
Losses on disposals
of property, plant and equipment
|
|
|
4,817
|
|
|
|
-
|
Deferred income tax
benefit
|
|
|
(1,880,228)
|
|
|
|
(1,574,995)
|
Change in
operating assets and liabilities:
|
|
|
|
|
|
|
|
Restricted
cash
|
|
|
6,082,662
|
|
|
|
(827,585)
|
Accounts
receivable
|
|
|
(132,230,006)
|
|
|
|
(97,157,176)
|
Amounts due from a
related party
|
|
|
6,534
|
|
|
|
(137,904)
|
Inventories
|
|
|
(63,358,285)
|
|
|
|
(32,494,523)
|
Prepaid expenses and
other current assets
|
|
|
(2,134,119)
|
|
|
|
6,830,122
|
Other non-current
assets
|
|
|
1,435
|
|
|
|
96,741
|
Bills
payable
|
|
|
15,676,880
|
|
|
|
(12,998,869)
|
Accounts
payable
|
|
|
113,429,086
|
|
|
|
6,576,382
|
Income taxes
payable
|
|
|
17,835,057
|
|
|
|
2,604,368
|
Accrued expenses and
other current liabilities
|
|
|
5,662,472
|
|
|
|
3,044,530
|
Net cash provided by (used in)
operating activities
|
|
|
115,646,525
|
|
|
|
(31,454,995)
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Purchase of time
deposits
|
|
|
(460,292,902)
|
|
|
|
(374,481,497)
|
Proceeds from
maturity of time deposits
|
|
|
231,849,776
|
|
|
|
327,121,555
|
Purchases of and
deposits for property, plant and equipment and land use
rights
|
|
|
(21,461,391)
|
|
|
|
(97,492,169)
|
Net cash used in investing
activities
|
|
|
(249,904,517)
|
|
|
|
(144,852,111)
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Proceeds from bank
borrowings
|
|
|
503,843,151
|
|
|
|
243,045,097
|
Repayment of bank
borrowings
|
|
|
(358,190,868)
|
|
|
|
(114,369,501)
|
Redemption of
redeemable Series C convertible preferred stock
|
|
|
-
|
|
|
|
(1,829)
|
Dividends paid to
Series C convertible preferred stockholders
|
|
|
-
|
|
|
|
(110)
|
Release of restricted
cash as collateral for bank borrowings
|
|
|
5,733,852
|
|
|
|
-
|
Placement of
restricted cash as collateral for bank borrowings
|
|
|
(8,173,789)
|
|
|
|
(4,775,204)
|
Net cash provided by financing
activities
|
|
|
143,212,346
|
|
|
|
123,898,453
|
Effect of foreign
currency exchange rate changes on cash and cash
equivalents
|
|
|
2,768,948
|
|
|
|
748,869
|
Net increase
(decrease) in cash and cash equivalents
|
|
|
11,723,302
|
|
|
|
(51,659,784)
|
Cash and cash
equivalents at beginning of year
|
|
|
83,822,602
|
|
|
|
135,482,386
|
Cash and cash
equivalents at end of year
|
|
|
95,545,904
|
|
|
|
83,822,602
|
CHINA XD PLASTICS COMPANY LIMITED.
Reconciliation of Net Income to EBITDA
(Amounts expressed in United States dollars)
|
|
|
Three Months
Ended
|
Years
Ended
|
|
December
31,
|
December
31,
|
|
2013
|
2012
|
2013
|
2012
|
Net income
|
$
57,519,811
|
17,259,963
|
$
133,838,845
|
$85,867,747
|
Interest
expense
|
4,440,559
|
2,071,915
|
15,250,780
|
4,627,014
|
Income tax
expense
|
21,388,864
|
7,988,542
|
46,697,120
|
29,516,193
|
Depreciation and amortization expense
|
5,450,729
|
3,098,847
|
21,420,723
|
10,705,037
|
EBITDA
|
88,799,963
|
30,419,267
|
217,207,468
|
130,715,991
|
SOURCE China XD Plastics Company Limited