– Revenue of
$283.2 million–
– Net
Income of $17.6 million–
HARBIN, China, Aug. 14, 2020 /PRNewswire/ -- China XD Plastics
Company Limited (NASDAQ: CXDC) ("China XD," the "Company" or "we"),
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
secondquarter ended June 30,
2020.
Second Quarter 2020 Financial Highlights
- Revenue was $283.2 million, a decrease of 38.8% YoY and an
increase of 95.6% sequentially
- Gross profit was $39.9 million, a decrease of 38.9% YoY
and an increase of 667.3% sequentially
- Gross margin was 14.1%, consistent YoY
and an increase of10.5%sequentially
- Net income was $17.6 million, compared to net income
of$40.1million in the same period last year and net loss of
$11.0 million sequentially
- EBITDA was $44.9 million, a
decrease of 35.9% YoY and an increase of 106.9% sequentially. A
description of the adjustments from GAAP net income to EBITDA is
detailed in the table captioned "Reconciliation of GAAP and
Non-GAAP Results" following this press release.
- Total volume shipped was 56,510 metric tons, down 47.0% YoY and
an increase of 99.5% sequentially
"We are pleased with our quarterly results with recovery in both
top and bottom lines," said
Jie Han, Chairman of the Board of
Directors and Chief Executive Officer. "During the first half of
this year, we have witnessed severe disruption in both production
and sales of China's auto
industry, and the production and sales in the first half of this
year showed a year-on-year decline, as the result of the COVID-19
pandemic. Amid the negative economic and industry environment,
during the three-month period ended June
30, 2020,China XD proactively fine-tuned its marketing
strategy to promote 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. This
was evidenced by sales growth in Southwest China, East China and South China, and average RMB sales price
increased by 19.7%,partially offset the decreased sales volume of
47.0%."
"Along the Chinese government recently issued supportive
policies toward enterprises reopening, we will continue to focus on
our customers' need, synchronize our production and sales to
pursuestable sales increase. At the same time, we will continue to
complete our infrastructure projects in Heilongjiang and Sichuan campus as planned, thus bringing the
production capacity in Heilongjiang Campus back to 390,000 metric
tons and bringing the total capacity of Sichuan base to 300,000 metric tons
by the end of 2020. We are confident in our ability to make
further inroads into more specialized high-end products for various
applications in more other markets."
"We will continue to optimize our management structure and
enhance our operating efficiency. We are confident, through our
cooperation with Chinese major banks to successfully execute our
expansion strategy in multiple regions and sectors, and confident
with our core market positioning."Mr. Han concluded.
Second Quarter 2020 Results
Revenues
Revenues were US$283.2 million in
the second quarter ended June
30,2020, a decrease of US$179.9
million, or 38.8%, compared to US$463.1 million in the same period of last year.
This was due to the decrease of 47.0% in sales volume, and 4.3%
negative impact from exchange rate due to depreciation of RMB
against US dollars, and partially offset by an increase of
19.7% in the average RMB selling price of our products, as compared
with those of the same period of last year.
(i) Domestic market
For the three months ended June 30,
2020, revenue from domestic market decreased by US$162.6 million or 36.5% as a combined result
of: (i) a decrease of 46.1% in sales volume; (ii) a
depreciation of RMB against USD by 4.3%; and partially offset by
(iii) an increase of 22.1 % in the average RMB selling price of our
products, as compared with those of last year.
According to the China Association of Automobile Manufacturers,
automobile production and sales in China decreased by 16.8% and 16.9%,
respectively, for the first half year of 2020 as compared to the
same period of 2019.
The weakening in macroeconomic conditions since the outbreak of
COVID-19 pandemic in January 2020
continued to exacerbate auto business environment. The Company's
business was negatively impacted and has generated lower revenue
during the period from February to April
2020. Thanks to our positive efforts to expand our customer
bases and to meet their new requirements, including producing raw
materials for PPE such as goggles and masks, to help alleviate the
pandemic to our communities and mitigate the negative impact of
world pandemic on Chinese auto industry, the Company has begun to
recover slowly after May 2020. We had
decrease in sales by 43.8% in Northeast
China, 28.9% in North
China, 16.5% in Central
China, and had increase in sales by 54.5% in Southwest China, 41.9% in East China, 27.8% in
South China for the three-month
period ended June 30, 2020 as
compared to the same period of 2019.
As for the RMB selling price, the increase of 22.1% was mainly
due to 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 during the three-month
period ended June 30, 2020.
(ii) Overseas market
For the three-month period ended June 30,
2020, revenues from overseas market was US$0.2 million as compared to US$17.5 million in the same period of 2019.The
Dubai facility was temporarily
shut down since late February and has not resumed its operation
till the current period, which has negatively impacted operations
in Dubai facility.
Premium products (PA66, PA6, POM, PPO, Plastic Alloy and PLA) in
total accounted for 89.6% of revenues from sales of finished goods
in the second quarter of 2020, compared to 83.6% in the prior year
period. The Company continued to shift production mix from
traditional lower-end products such as PP to higher-end products
such as PA66 and PA6, 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.
Gross profit was US$39.9 million
in the second quarter ended June 30,
2020, compared to US$65.3
million in the same period of 2019, representing a decrease
of US$25.4 million or 38.9%. Our
gross margin remained consistent at 14.1% for both quarters ended
June 30, 2020 and 2019, primarily due
to decreased sales of semi-finished goods with lower profit margin,
and partially offset by the increased cost for idle capacity as a
result of shutdown during the second quarter of 2020.
General and administrative (G&A) expenses were US$3.7 million for the quarter ended June 30, 2020 compared to US$5.8 million in the same period in 2019,
representing a decrease ofUS$2.1 million or 36.2%. The decrease was
primarily due to the decrease of salary and welfare and
miscellaneous expenses as a result of management's cost reduction
measure to cope with impact from the COVID-19.
Research and development expenses were US$5.8 million in the quarter ended June 30, 2020 compared with US$9.6 million in the same period in 2019,
representing a decrease of US$3.8
million, or 39.6%. This decrease was due to (i) a decrease
of US$3.4 million in raw materials
consumption; (ii) a decrease of US$0.3
million in depreciation; and (iii) a decrease of
US$0.1 million in salary and welfare
for R&D personnel. As of June 30,
2020, the number of ongoing research and development
projects was 356.
Total operating income was US$30.4 million in the second quarter ended
June 30, 2020 compared to
US$49.7 million in the same period of
2019, representing a decrease of US$19.3
million or 38.8%. This decrease is primarily due to the
lower gross profit, and partially offset by the lower operating
expenses.
Net interest expenses were US$15.8
million for the three-month period ended June 30, 2020, compared to $11.6 million in the same period of 2019,
representing an increase of US$4.2
million or 36.2%, primarily due to (i) the increase of
average short-term and long-term loan balance in amount of
US$1,219.8 million for the
three-month period ended June 30,
2020 compared to US$882.5
million for the same period in 2019; (ii) the increase of
interest expense resulting from the average loan interest rate
increased to 5.4% for the three-month period ended June 30, 2020 compared to 5.2% of the same period
in 2019.
The effective income tax rates for the three-month periods ended
June 30, 2020 and 2019 were negative
12.0% and 6.2%, respectively. The effective income tax rate
decreased from 6.2% for the three-month period ended June 30, 2019 to negative 12.0% for the
three-month period ended June 30,
2020, primarily due to the increased reversal amount of
unrecognized tax benefit.
Net income was US$17.6 million in
the second quarter of 2020 compared to a net income of
US$40.1 million in the same quarter
of 2019, representing a decrease of US$22.5
million, or 56.1%. Basic and diluted earnings per share for
the second quarter of 2020 were both US$0.26, compared to US$0.60 earnings per share per share for the same
period of 2019.
The average number of shares used in the computation of basic
and diluted earnings per share for the three months ended
June 30, 2020 was 66.9 million,
compared to 50.9 million shares for earnings per share in the prior
year period.
Earnings before interest, tax, depreciation and amortization
(EBITDA) was $44.9 million for the
second quarter of 2020, compared of $70.1
million for the same period of 2019, representing a decrease
of $25.2 million, or 35.9%. 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, 2020, the Company
had US$290.8 million in the total
amount of cash and cash equivalents, restricted cash and time
deposits, representing an increase of US$62.4 million or 27.3% as compared to
US$228.4 million as of December 31, 2019, mainly due to the financing
activity cash inflows. As of June 30,
2020, working capital was US$276.8
million (current assets minus current liabilities) and the
current ratio (current assets divided by current liabilities) was
1.2, as compared to the current ratio of 1.0 as of December 31, 2019. Stockholders' equity as of
June 30, 2020 was US$876.6 million, increased by 4.8% as compared
to US$836.4 million as of
December 31, 2019, primarily due to
the increase of US$45.9 million non
controlling interests.
Prepaid expenses and other current assets increased by
US$233.6 million or 136.0% primarily
due to (i) an increase of US$308.5
million in receivables due from third parties, partially
offset by (ii) a decrease of US$42.6
million in trade receivables, and (iii)a decrease of
US$26.6 million advances to suppliers
for purchasing raw materials. The aggregate short-term and
long-term bank loans increased by 34.3% 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
On May 8, 2020, the Board of
Directors of the Company received a preliminary nonbinding proposal
letter from Mr. Han, our Chairman and Chief Executive Officer, XD.
Engineering Plastics Company Limited (together with Mr. Han, the
"Buyer Group"), a company incorporated in the British Virgin Islands and wholly owned by Mr.
Han, proposing to acquire all of the outstanding shares of common
stock of the Company not already beneficially owned by the Buyer
Group in a "going-private" transaction. The Board of
Directors has established a special committee (the "Special
Committee"), consisting of the following independent directors of
the Company: Mr. LinyuanZhai, Mr. Huiyi
Chen and Mr. Guanbao Huang, with Mr. Huiyi Chen serving as chairperson of the Special
Committee. The Special Committee is responsible for evaluating,
negotiating and recommending to the Board any proposals involving a
strategic transaction by the Company with one or more third
parties. On June 15, 2020, the
Company entered into an agreement and plan of merger in connection
with the proposed going-private transaction. For details, please
refer to the Company's Form 8-K filed on June 15, 2020. There can be no assurance that the
merger agreement or the transactions contemplated thereunder or any
alternative transactions will be approved by our stockholders or
consummated.
Financial Guidance and Business Outlook
As a result of the outbreak of COVID-19 in the PRC, China Auto
Industry production and sales drastically decreased by 16.8% and
16.9% for the first half year of 2020, according to the China
Association of Automobile Manufacturers. It has a ripple effect and
impact throughout China auto
supply chain, including the Company.
Due to the fact that the Company had temporarily closed some of
its manufacturing facilities and offices in the PRC in accordance
with the requirement of the PRC government, the ongoing COVID-19
pandemic has an ongoing material adverse effect on our
business operations. In light of these circumstances and continuing
uncertainties, the Company will not be able to forecast its
financial guidance for fiscal 2020 until further notice.
About Non-GAAP Financial Measure
To supplement the Company's consolidated financial results
presented in accordance with United States Generally Accepted
Accounting Principles ("GAAP"), the Company uses in this press
release the following measure defined as non-GAAP financial
measures by the United States Securities and Exchange Commission:
EBITDA. The presentation of the non-GAAP financial information is
not intended to be considered in isolation or as a substitute for
the financial information prepared and presented in accordance with
GAAP. For more information on this non-GAAP financial measure,
please see the table captioned "Reconciliation of GAAP and non-GAAP
Results" set forth at the end of this press release. The
Company's management believes that this adjusted measure provides
investors with a better understanding of how the results relate to
the Company's historical performance. This adjusted measure should
not be considered an alternative to net income (loss), or any other
measure of financial performance presented in accordance with U.S.
GAAP, and is not necessarily comparable to a similarly titled
measure of any other company. The accompanying tables have
more details on the reconciliation between non-GAAP financial
measure and its most directly comparable GAAP financial
measure.
Conference Call
China XD Plastics' senior management will host a conference call
at 8:00 am Eastern Time on Friday,
August 14, 2020, to discuss its second quarter 2020 financial
results.
Due to the outbreak of COVID-19, operator assisted conference
calls are not available at the moment. All participants must
preregister online prior to the call to receive the dial-in
details.
Please register in advance of the conference using the link
provided below.
http://apac.directeventreg.com/registration/event/4577912 . Upon
registering, you will be provided with participant dial-in numbers,
Direct Event passcode and unique registrant ID.
To join the conference, please dial the number you receive,
enter the event passcode followed by your unique registrant ID, and
you will be joined to the conference instantly.
A recording of the conference call will be available
through August 22, 2020 by calling + 1-855-452-5696(for
callers in the U.S.), and +61 2 8199 0299 (for International
callers) and entering passcode 4577912
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,
2020, 636 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
U.S. 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 the Company's ongoing mix shift to more advanced
products; the prospect of the Company's facilities in various
regions. 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, the fluctuation in automotive
sales and productions, the development of Company's expansion
plans, the slowdown of China's
automotive industry, the concentration of the Company's
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 -
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
June
30,
2020
|
|
December
31,
2019
|
|
|
US$
|
|
US$
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
3,167,943
|
|
|
|
17,201,775
|
|
Restricted
cash
|
|
|
164,738,656
|
|
|
|
211,231,244
|
|
Time
deposits
|
|
|
122,890,035
|
|
|
|
—
|
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
|
184,384,982
|
|
|
|
222,072,053
|
|
Inventories
|
|
|
678,543,004
|
|
|
|
642,509,534
|
|
Prepaid expenses and
other current assets
|
|
|
405,418,146
|
|
|
|
171,848,122
|
|
Total current
assets
|
|
|
1,559,142,766
|
|
|
|
1,264,862,728
|
|
Property, plant and
equipment, net
|
|
|
813,776,106
|
|
|
|
830,319,716
|
|
Long-term prepayments
to equipment and construction
suppliers
|
|
|
502,049,222
|
|
|
|
495,570,421
|
|
Operating lease
right-of-use assets, net
|
|
|
43,107,997
|
|
|
|
44,149,955
|
|
Other non-current
assets
|
|
|
736,988
|
|
|
|
979,428
|
|
Total
assets
|
|
|
2,918,813,079
|
|
|
|
2,635,882,248
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Short-term bank
loans, including current portion of long-term
bank loans
|
|
|
770,943,894
|
|
|
|
680,174,859
|
|
Bills
payable
|
|
|
331,110,954
|
|
|
|
400,671,063
|
|
Accounts
payable
|
|
|
48,199,950
|
|
|
|
57,458,673
|
|
Amounts due to
related parties
|
|
|
25,876,162
|
|
|
|
26,251,919
|
|
Income taxes
payable
|
|
|
28,763,054
|
|
|
|
26,458,837
|
|
Operating lease
liabilities, current
|
|
|
1,413,018
|
|
|
|
1,388,555
|
|
Accrued expenses and
other current liabilities
|
|
|
76,017,727
|
|
|
|
86,550,388
|
|
Total current
liabilities
|
|
|
1,282,324,759
|
|
|
|
1,278,954,294
|
|
Long-term bank loans,
excluding current portion
|
|
|
575,452,134
|
|
|
|
322,456,413
|
|
Deferred
income
|
|
|
88,298,695
|
|
|
|
92,639,620
|
|
Operating lease
liabilities, non-current
|
|
|
14,250,090
|
|
|
|
14,429,434
|
|
Other non-current
liabilities
|
|
|
81,846,026
|
|
|
|
91,028,376
|
|
Total
liabilities
|
|
|
2,042,171,704
|
|
|
|
1,799,508,137
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Series B preferred
stock
|
|
|
100
|
|
|
|
100
|
|
Common stock,
US$0.0001 par value, 500,000,000 shares
authorized, 66,969,841 shares issued, 66,948,841 shares
outstanding as of June 30, 2020 and December 31, 2019,
respectively
|
|
|
6,697
|
|
|
|
6,697
|
|
Treasury stock,
21,000 shares at cost
|
|
|
(92,694)
|
|
|
|
(92,694)
|
|
Additional paid-in
capital
|
|
|
184,208,447
|
|
|
|
184,208,447
|
|
Retained
earnings
|
|
|
726,696,685
|
|
|
|
720,159,368
|
|
Accumulated other
comprehensive loss
|
|
|
(80,085,057)
|
|
|
|
(67,907,807)
|
|
Total equity
attributable to China XD Plastics
Company Limited
|
|
|
830,734,178
|
|
|
|
836,374,111
|
|
Noncontrolling
interest
|
|
|
45,907,197
|
|
|
|
—
|
|
Total stockholders'
equity
|
|
|
876,641,375
|
|
|
|
836,374,111
|
|
Commitments and
contingencies
|
|
|
—
|
|
|
|
—
|
|
Total liabilities and
stockholders' equity
|
|
|
2,918,813,079
|
|
|
|
2,635,882,248
|
|
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(LOSS)
|
|
|
|
Three-Month Period
Ended
June
30,
|
|
Six-Month Period
Ended
June
30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
US$
|
|
US$
|
|
US$
|
|
US$
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
283,223,987
|
|
|
|
463,073,880
|
|
|
|
428,061,665
|
|
|
|
764,539,887
|
|
Cost of
revenues
|
|
|
(243,332,297)
|
|
|
|
(397,813,194)
|
|
|
|
(382,932,118)
|
|
|
|
(648,949,533)
|
|
Gross
profit
|
|
|
39,891,690
|
|
|
|
65,260,686
|
|
|
|
45,129,547
|
|
|
|
115,590,354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
(46,149)
|
|
|
|
(247,410)
|
|
|
|
(162,060)
|
|
|
|
(525,230)
|
|
General and
administrative expenses
|
|
|
(3,677,030)
|
|
|
|
(5,764,593)
|
|
|
|
(9,707,156)
|
|
|
|
(14,539,978)
|
|
Research and
development expenses
|
|
|
(5,803,128)
|
|
|
|
(9,551,721)
|
|
|
|
(9,644,920)
|
|
|
|
(19,613,907)
|
|
Total operating
expenses
|
|
|
(9,526,307)
|
|
|
|
(15,563,724)
|
|
|
|
(19,514,136)
|
|
|
|
(34,679,115)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
30,365,383
|
|
|
|
49,696,962
|
|
|
|
25,615,411
|
|
|
|
80,911,239
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
75,426
|
|
|
|
454,357
|
|
|
|
341,048
|
|
|
|
890,136
|
|
Interest
expense
|
|
|
(15,914,544)
|
|
|
|
(12,059,242)
|
|
|
|
(33,830,733)
|
|
|
|
(29,559,519)
|
|
Foreign currency
exchange gains (losses)
|
|
|
(177,717)
|
|
|
|
3,050,612
|
|
|
|
2,190,422
|
|
|
|
909,747
|
|
Gains on disposal of
a subsidiary
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
518,491
|
|
Government
grant
|
|
|
1,342,273
|
|
|
|
1,611,216
|
|
|
|
11,255,210
|
|
|
|
3,706,153
|
|
Total non-operating
expense, net
|
|
|
(14,674,562)
|
|
|
|
(6,943,057)
|
|
|
|
(20,074,053)
|
|
|
|
(23,534,992)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
15,690,821
|
|
|
|
42,753,905
|
|
|
|
5,541,358
|
|
|
|
57,376,247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit
(expense)
|
|
|
1,884,990
|
|
|
|
(2,642,588)
|
|
|
|
995,959
|
|
|
|
(6,284,215)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
17,575,811
|
|
|
|
40,111,317
|
|
|
|
6,537,317
|
|
|
|
51,092,032
|
|
Net income
attributable to noncontrolling
interest
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Net incomeattributable to
China XD
Plastics Company Limited
|
|
|
17,575,811
|
|
|
|
40,111,317
|
|
|
|
6,537,317
|
|
|
|
51,092,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
0.26
|
|
|
|
0.60
|
|
|
|
0.10
|
|
|
|
0.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
|
17,575,811
|
|
|
|
40,111,317
|
|
|
|
6,537,317
|
|
|
|
51,092,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment,
net of nil income taxes
|
|
|
406,160
|
|
|
|
(16,713,085)
|
|
|
|
(12,177,250)
|
|
|
|
(2,042,284)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss)
|
|
|
17,981,971
|
|
|
|
23,398,232
|
|
|
|
(5,639,933)
|
|
|
|
49,049,748
|
|
Comprehensive income
(loss) attributable
to noncontrolling interest
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Comprehensive income
(loss)attributable to China XD Plastics
Company Limited
|
|
|
17,981,971
|
|
|
|
23,398,232
|
|
|
|
(5,639,933)
|
|
|
|
49,049,748
|
|
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
Six-Month Period
Ended June 30,
|
|
|
2020
|
|
2019
|
|
|
US$
|
|
US$
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net cash (used in)
provided by operating activities
|
|
|
(310,823,681)
|
|
|
|
92,864,032
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchase of time
deposits
|
|
|
(123,811,692)
|
|
|
|
—
|
|
Purchase of and
deposits for property, plant and equipment
|
|
|
(24,747,038)
|
|
|
|
(52,396,204)
|
|
Proceeds from sales
of a subsidiary
|
|
|
—
|
|
|
|
7,376,807
|
|
Cash disposed for
sales of a subsidiary
|
|
|
—
|
|
|
|
(3,202)
|
|
Net cash used in
investing activities
|
|
|
(148,558,730)
|
|
|
|
(45,022,599)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from bank
borrowings
|
|
|
638,701,758
|
|
|
|
1,400,043,299
|
|
Repayments of bank
borrowings
|
|
|
(283,097,285)
|
|
|
|
(1,307,643,944)
|
|
Capital injection
from noncontrolling interests
|
|
|
46,251,494
|
|
|
|
—
|
|
Proceeds from
interest-free advances from related parties
|
|
|
1,138,498
|
|
|
|
67,389,859
|
|
Repayments of
interest-free advances from related parties
|
|
|
(1,138,498)
|
|
|
|
(65,152,460)
|
|
Payments of issuance
cost for syndicated loans
|
|
|
(126,012)
|
|
|
|
—
|
|
Net cash provided
by financing activities
|
|
|
401,729,955
|
|
|
|
94,636,754
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign
currency exchange rate changes on cash,
cash equivalents and restricted cash
|
|
|
(2,873,964)
|
|
|
|
(2,597,145)
|
|
Net (decrease)
increase in cash, cash equivalents and r
estricted cash
|
|
|
(60,526,420)
|
|
|
|
139,881,042
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash at beginning
of period
|
|
|
228,433,019
|
|
|
|
366,991,840
|
|
Cash, cash
equivalents and restricted cash at end of
period
|
|
|
167,906,599
|
|
|
|
506,872,882
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
Interest paid, net of
capitalized interest
|
|
|
33,303,914
|
|
|
|
29,586,602
|
|
Income taxes
paid
|
|
|
2,256,375
|
|
|
|
6,067,051
|
|
Non-cash investing
and financing activities:
|
|
|
|
|
|
|
|
|
Accrual for purchase
of equipment and construction
included in accrued expenses and other current
liabilities
|
|
|
5,890,438
|
|
|
|
1,721,729
|
|
Reclassification of
mandatorily redeemable noncontrolling
interest to noncontrolling interest
|
|
|
45,907,197
|
|
|
|
—
|
|
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,
|
|
|
2020
|
|
2019
|
|
|
US$
|
|
US$
|
Cash and cash
equivalents
|
|
|
3,167,943
|
|
|
|
194,763,132
|
|
Restricted
cash
|
|
|
164,738,656
|
|
|
|
312,109,750
|
|
Total cash, cash
equivalents, and restricted cash shown in the
statement of cash flows
|
|
|
167,906,599
|
|
|
|
506,872,882
|
|
CHINA XD PLASTICS
COMPANY LIMITED
|
RECONCILIATION OF
GAAP AND NON-GAAP RESULTS
|
(Amounts expressed
in United States Dollars)
|
|
|
Three-Month Period
Ended
|
|
June
30,
|
|
2020
|
2019
|
|
|
|
Net income
-GAAP
|
$
17,575,811
|
$
40,111,317
|
Interest
expense
|
15,914,544
|
12,059,242
|
Provision for income
taxes
|
(1,884,990)
|
2,642,588
|
Depreciation and
amortization expense
|
12,950,084
|
15,143,020
|
Amortization of
operating lease right-of-use assets
|
312,112
|
157,806
|
EBITDA
|
44,867,561
|
70,113,973
|
View original
content:http://www.prnewswire.com/news-releases/specialty-chemical-company-china-xd-plastics-announces-second-quarter-2020-financial-results-301112407.html
SOURCE China XD Plastics Company Limited