China XD Plastics Announces Fourth Quarter and Fiscal Year 2015 Financial Results

- Revenues and Profits in Line with Guidance -

- Provides Fiscal 2016 Guidance -

Mar 15, 2016, 08:00 ET from China XD Plastics Company Limited

HARBIN, China, March 15, 2016 /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 fourth quarter and fiscal year ended December 31, 2015.

Fourth Quarter 2015 Financial Highlights

  • Revenue was $272.8 million, a decrease of 11.2% YoY and an increase of 14.1% sequentially
  • Gross profit was $52.0 million, a decrease of 10.5% YoY and an increase of 77.5% sequentially
  • Gross margin of 19.1%, an increase of 20 basis points YoY and 680 basis points sequentially
  • Net income was $26.8 million, a decrease of 25.1% YoY and an increase of 346.7% sequentially
  • Total volume shipped was 96,293 metric tons, up 0.2% YoY and an increase of 17.9% sequentially

Full Year 2015 Financial Summary

  • Revenue was $999.2 million, a decrease of 10.0% from $1,110.6 million for the full year 2014
  • Gross profit was $181.4 million, a decrease of 18.4% from $222.4 million for the full year 2014
  • Gross profit margin of 18.2%, a decrease of 180 basis points from the full year 2014
  • Net income was $83.7 million, a decrease of 30.7% from $120.7 million for the full year 2014
  • Total volume shipped was 332,144 metric tons, down 2.7% from 341,520 metric tons for the full year 2014

"We are pleased to have met our revised revenue and net income guidance for 2015 issued in the third quarter of last year due to reasonably strong customer demand in the fourth quarter for our products. However, challenging macroeconomic conditions in China has impeded the growth of the domestic automotive market, which stalled our record of steady growth for the first time last year. Because of the challenging operating conditions, our domestic market experienced a 1.0% decrease in sales volume and a 1.4% decrease in the average selling price of our products in fiscal 2015 as compared to fiscal 2014. We experienced a decrease in our operating metrics primarily due to the lower 7.2% sales contribution from sales overseas compared to this customer's 12.6% sales contribution in fiscal 2014," said Jie Han, Chairman and Chief Executive Officer.

"With the slowing domestic economy, vehicle sales in China grew by only 4.7% in 2015, the slowest rate in 25 years, and both the automotive and automotive parts industries in China have experienced pricing pressure beginning in 2015. In order to stimulate the auto industry, in September 2015, the Chinese government implemented an incentive policy granting 50% reduction in sales tax for eligible purchases of vehicles with engine sizes of 1.6 liters and lower. This helped spur the recovery of vehicle sales in China in the fourth quarter of 2015 and is reflected in our better sequential results as well as in an improved year-over-year gross profit margin."

"Our marketing efforts have produced positive sales results in Southwest China and Central China where we are working to develop new customers. Our expansion plans in Sichuan enables us to locally service important new customers in this rapidly growing auto-making hub. While we expect automotive applications to continue to be our core business, the new facility will include precision equipment that will facilitate product deployment into additional high growth verticals such as high speed rail, shipping aviation, 3D printing materials, bio-degradable materials, medical-grade materials and food packaging. When complete, the new facility under construction will increase our total production capacity by 300,000 metric tons of new capacity. We expect our Sichuan campus to be commissioned in the second half of 2016 with approximately 60,000 metric tons of production capacity contribution this year."

"Our new facility in Dubai produces specialized high margin products and is strategically situated as a gateway to the Middle East and Europe. Phase 1 of our Dubai plant was completed last year with plant capacity capable of producing 2,500 metric tons of high end products, and production is continuing to ramp to reach optimal utilization in 2016. Phase 2 of Dubai, which will produce 14,000 metric tons of additional capacity, is currently under construction and is expected to start producing at the beginning of 2017."

"We are pleased to have seen our business stabilize in the fourth quarter as seen by a slight upturn in customer demand. We are optimistic about our outlook for 2016 as we bring new capacity online to serve new customers in Asia, Europe and Middle East. We are excited about our growth prospects and believe that our new production capacity, technological edge and improved market positioning will enable us to substantially grow revenues and market share in the years ahead," concluded Chairman and Chief Executive Officer Jie Han.  

Fourth Quarter 2015 Results

Revenues were $272.8 million for the fourth quarter of 2015, compared to $307.1 million in the same period of 2014, representing a decrease of 11.2%, or $34.3 million. The year-over-year decrease was primarily due to a 7.9% decrease in the average RMB selling price, which was offset slightly by a 0.2% increase in sales volume. The depreciation in the RMB foreign exchange rate was also a factor in the decrease in revenue for the period.

Premium products (mainly PA6, PA66, POM, PPO, PLA and plastic alloys) accounted for 81.1% of total revenues in the fourth quarter of 2015, compared to 75.8% in the prior year period. Sales to the Southwest China market accounted for 7.9% of total revenues compared to 2.8% in the fourth quarter of 2014 as we have begun to more aggressively ramp our sales efforts consistent with the construction of our new plant in Sichuan. Sales to the overseas market accounted for 0.1% of total revenues in the fourth quarter of 2015, compared to 19.8% in the fourth quarter of 2014.

Gross profit was $52.0 million for the fourth quarter of 2015, compared to $58.1 million in the same period of 2014, representing a decrease of 10.5%, or $6.1 million. Gross margin was 19.1% compared to 18.9% in the fourth quarter of 2014, primarily due to a product mix shift with a higher margin contribution from premium products.

General and administrative (G&A) expenses were $6.5 million for the fourth quarter of 2015, compared to $6.8 million in the same period of 2014, representing a decrease of 4.4%, or $0.3 million

Research and development (R&D) expenses were $2.8 million for the fourth quarter of 2015, compared to $2.4 million in the same period of 2014, representing an increase of 16.7%, or $0.4 million. During the quarter, the Company recalibrated its R&D programs in response to changing market conditions, and has adjusted its R&D activities to focus on new products for advanced industrialized applications, augmenting its auto sector focus to include other sectors such as ships, aviation, high-speed rail, 3D printing materials, biodegradable plastics, medical-grade materials, food packaging and other sectors. As of December 31, 2015, the number of ongoing research and development projects was 144 as compared to 96 as of fiscal year end 2014.

Operating income was $42.3 million for the fourth quarter of 2015, compared to $48.6 million in the same period of 2014, representing a decrease of 13.0%, or $6.3 million. The decrease is primarily due to lower gross profit, and higher general and administrative and R&D expenses.

Net interest expense was $9.3 million for the fourth quarter of 2015, compared to net interest expense of $8.0 million in the same period of 2014.  This was primarily due to (i) a decrease of $1.1 million in interest income due to the decreased average deposit balance of $265.0 million bearing a weighted average interest rate of 2.2% in the fourth quarter of 2015, compared to the average deposit balance of $324.0 million bearing a weighted average interest rate of 3.0% in the same period of 2014, leading to the decrease of interest income; and (ii) an increase of interest expense of $0.3 million.

Income tax expense was $6.4 million for the fourth quarter of 2015, representing an effective income tax rate of 19.2%, compared to an effective income tax rate of 4.5% in the fourth quarter of 2014. The increase in the effective income tax rate was mainly due to the lower sales contribution AL Composites, an income tax exempt subsidiary, which comprised 0.1% of total revenues in the fourth quarter of 2015, compared to 19.8% in the fourth quarter of 2014.

Net income was $26.8 million for the fourth quarter of 2015, compared to $35.8 million in the same period of 2014, representing a decrease of 25.1%, or $9.0 million. Basic and diluted earnings per share were $0.41, compared to $0.54 per share in the fourth quarter of 2014. 

The average number of shares used in the computation of basic and diluted earnings per share for the three months ended December 31, 2015 was 49.3 million, compared to 49.1 million shares for basic and diluted earnings per share in the prior year period.

EBITDA was $51.2 million for the fourth quarter of 2015, compared to EBITDA of $53.8 million in the same period of 2014, representing a decrease of 4.8%, or $2.6 million. 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.

Full Year 2015 Financial Results

Revenues were $999.2 million in fiscal 2015, compared to $1,110.6 million in fiscal 2014, representing a decrease of 10.0%, or $111.4 million. The year-over-year decrease was primarily due to a 2.7% decrease in sales volume and a 5.5% decrease in the average RMB selling price of our products.

Premium products accounted for 79.1% of total revenues in fiscal 2015, compared to 75.1% in the prior year. Sales to the overseas market accounted for 7.2% of total revenues in fiscal 2015, compared to 12.6% in the prior year.

Gross profit was $181.4 million in fiscal 2015, compared to $222.4 million in fiscal 2014, representing a decrease of 18.4%, or $41.0 million. Our gross margin decreased to 18.2% for fiscal 2015 from 20.0% for fiscal 2014, primarily due to pricing pressure resulting from the slowdown of the auto industry in China and a lower margin contribution from overseas sales. The average RMB selling price of our products decreased 5.5% for the year ended December 31, 2015 as compared to that of the prior year.

General and administrative (G&A) expenses were $23.8 million in fiscal 2015, compared to $20.6 million in fiscal 2014, representing an increase of 15.5%, or $3.2 million. This increase is primarily due to the increase of (i) $1.1 million of corporate events related expenses, (ii) $0.7 million of travel expenses in connection with our business expansion, (iii) $0.4 million of fixed assets depreciation, (iv) $0.7 million of other miscellaneous expenses, and (v) $0.3 million of payroll and welfare expenses. 

Research and development (R&D) expenses were $21.1 million in fiscal 2015, compared to $29.4 million in fiscal 2014, representing a decrease of 28.2%, or $8.3 million.  During the year, the Company recalibrated its R&D programs in response to changing market conditions, and has adjusted its R&D activities to focus on new products for advanced industrialized applications, augmenting its auto sector focus to include other sectors such as ships, aviation, high-speed rail, 3D printing materials, biodegradable plastics, medical-grade materials, food packaging and other sectors. As of December 31, 2015, the number of ongoing research and development projects was 144. In 2015, the Company successfully launched 40 new automobile manufacturers certified products ("AMCP"), which increased its total number of AMCP to 361.

Operating income was $135.0 million in fiscal 2015, compared to $171.7 million in fiscal 2014, representing a decrease of 21.4%, or $36.7 million. This decrease was due to lower gross profit, higher general and administration expenses and higher selling expenses, which were partially offset by the lower research and development expenses.

Net interest expense was $34.5 million in fiscal 2015, compared to net interest expense of $30.5 million in fiscal 2014. This was primarily due to (i) an increase of $1.8 million in interest expense resulting from the issuance of senior notes in 2014, and (ii) a decrease of $2.8 million in interest income due to the decrease of the average deposit balance of $308.1 million bearing a weighted average interest rate of 2.6% in fiscal 2015, as compared to the average deposit balance of $399.2 million bearing a weighted average interest rate of 2.7% in fiscal 2014, leading to the decrease of interest income.

Income tax expense was $18.2 million in fiscal 2015, representing an effective income tax rate of 17.9%, compared to an effective income tax rate of 13.1% in fiscal 2014. The increase of the effective income tax rate was primarily due to less profit generated by AL Composites in 2015 compared with that of 2014, during which Dubai Composites was exempted from income taxes.

Net income was $83.7 million in fiscal 2015, compared to $120.7 million in fiscal 2014, representing a decrease of 30.7%, or $37.0 million.

Basic and diluted earnings per share were $1.27 in fiscal 2015, compared to basic and diluted earnings per share of $1.85 in fiscal 2014. 

The average number of shares used in the computation of basic and diluted earnings per share for the fiscal year 2015 was 49.2 million, compared to 48.8 million shares in the prior fiscal year.

EBITDA was $172.2 million for the fiscal year 2015, as compared to EBITDA of $203.5 million in the prior fiscal year, representing a decrease of 15.4%, or $31.3 million. 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, 2015, the Company had $119.9 million in cash and cash equivalents, $237.6 million in time deposits with commercial banks, $230.4 million in working capital (current assets minus current liabilities) and a current ratio (current assets divided by current liabilities) of 1.3.  Stockholders' equity as of December 31, 2015 was $578.0 million, compared to stockholders' equity of $525.3 million as of December 31, 2014.

Our financial condition continued to improve as measured by an increase of 10.0% in stockholders' equity as of December 31, 2015 compared to the prior year. Cash and cash equivalents, restricted cash and time deposits increased by 37.7% due to cash flows provided by operating activities and an increase of short-term and long-term bank loans of $117.8 million to meet our capital expenditure requirements, which was partially offset by the purchase of and prepayments for property, plant and equipment.

Inventories increased by 18.0% due to increased purchases of raw material to take advantage of the lower purchase prices of raw materials and the Company's strategy to stock up on inventory. The increase in deferred income was due to RMB 403.6 million (equivalent to $62.0 million) in government grants from authorities in Sichuan Province in connection with the construction of our 4th production base in Sichuan Province.

The aggregate short-term and long-term bank loans and notes payable increased by 28.4% due to utilization of existing lines of credit. We believe our current debt level is manageable. We define a manageable debt level as the sum of aggregate short-term and long-term loans, and notes payable over the total assets. Accounts payable and bills payable increased by 48.8% due to its utilizing an extension of purchase credit terms. As of December 31, 2015, notes payable was $145.6 million relating to the 11.75% guaranteed senior notes due in 2019, net of discount and issuance cost.

Net cash provided by operating activities increased by $78.7 million for the year ended December 31, 2015 from $148.7 million for the year ended December 31, 2014. This was primarily due to (i) the decrease of approximately $267.5 million in operating cash payment, including raw material purchases, rental and personnel costs for the year ended December 31, 2015, (ii) the decrease of $20.3 million in income tax payments, (iii) the increase of $3.6 million received from a government grant, and (iv) the cash received of $0.6 million as a result of the exercise of a forward contract whereas cash payment of $1.1 million in 2014 which led to increase of $1.7 million for the year ended December 31, 2015, partially offset by (v) the decrease of approximately $208.1 million of cash collected from our customers, and (vi) the increase of $6.6 million in interest payments for the year ended December 31, 2015.

Financial Guidance and Business Outlook

The Company projects revenue for fiscal 2016 to range between $1.0 billion and $1.1 billion and net income to range between $100.0 million to $110.0 million. This is based on the anticipation of a steady recovery throughout the Chinese automotive supply chain and a stabilization of crude oil pricing and its impact on polymer composite materials in 2016. This forecast also assumes contributions from the Sichuan plant, which will start production in the second half of 2016.  It also assumes the average exchange rate of the US dollar to RMB at 6.5. This financial guidance reflects the Company's preliminary view of its business outlook for fiscal 2016 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 8:30 a.m. ET on Tuesday, March 15, 2016, to discuss its fourth quarter and fiscal 2015 financial results. The conference call can be accessed by dialing +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 5155910.

A recording of the conference call will be available through March 21, 2016, by calling +1 (866) 846-0868 (for callers in the U.S.) and entering pass code 5155910.

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, 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 28 automobile brands manufactured in China, including without limitation, Audi, Mercedes Benz, BMW, Buick, Chevrolet, VW Passat, Golf and Jetta, Mazda, and Toyota. 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 December 31, 2015, 361 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 website at 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 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 volatility of the Company's operating results and financial condition; 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 guaranteed senior notes transaction and other contractual obligations applicable to them; 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, and its penetration into Southwest China; the impact of volatile crude oil prices on the Company's efforts to diversify its product offers; market for plastic resins; legal and regulatory risks; the Company's projections of its revenues for performance in fiscal in 2016; 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; 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

Investor Relations: Grayling Communications Inc. Ms. Vivian Chen, Managing Director US: +1 (347) 481-3711 Email: Vivian.chen@grayling.com

-Financial Tables Follow-

 

CHINA XD PLASTICS COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

December 31,

2015

2014

US$

US$

ASSETS

Current assets:

Cash and cash equivalents

119,928,485

45,456,612

Restricted cash

50,852,327

12,545,772

Time deposits

237,626,806

238,532,702

Accounts receivable, net of allowance for doubtful accounts

234,542,739

203,998,138

Amounts due from a related party

244,836

220,262

Inventories

294,665,195

249,797,244

Prepaid expenses and other current assets

15,675,848

11,253,828

    Total current assets

953,536,236

761,804,558

Property, plant and equipment, net

571,746,507

318,324,600

Land use rights, net

24,506,837

11,896,542

Prepayments to equipment and construction suppliers

183,226,006

182,259,578

Other non-current assets

18,966,622

21,256,332

    Total assets

1,751,982,208

1,295,541,610

LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCKS AND STOCKHOLDERS' EQUITY

Current liabilities:

Short-term bank loans, including current portion of long-term bank loans

284,339,089

99,735,422

Bills payable

33,522,287

43,389,928

Accounts payable

257,417,000

152,073,014

Amounts due to a related party

8,439

-

Income taxes payable

6,881,946

3,269,115

Accrued expenses and other current liabilities

140,988,712

24,484,583

    Total current liabilities

723,157,473

322,952,062

Long-term bank loans, excluding current portion

107,481,709

174,274,446

Notes payable

145,634,996

144,373,645

Deferred income

62,039,050

-

Other non-current liabilities

38,046,917

30,977,376

    Total liabilities

1,076,360,145

672,577,529

Redeemable Series D convertible preferred stock

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, 49,344,284      shares and 49,172,796 shares issued, 49,323,284 shares and 49,151,796 shares      outstanding as of  December 31, 2015 and 2014, respectively

4,933

4,916

Treasury stock, 21,000 shares at cost

(92,694)

(92,694)

Additional paid-in capital

81,919,932

80,875,787

Retained earnings

515,555,985

431,823,706

Accumulated other comprehensive income (loss)

(19,342,658)

12,775,801

    Total stockholders' equity

578,045,598

525,387,616

Commitments and contingencies

    Total liabilities, redeemable convertible preferred stocks and stockholders' equity

1,751,982,208

1,295,541,610

 

 

CHINA XD PLASTICS COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Years

 Ended December 31,

Three Months

 Ended December 31,

2015

2014

2015

2014

US$

US$

US$

US$

Revenues

999,192,894

1,110,685,692

272,752,694

307,149,813

Cost of revenues

(817,811,445)

(888,227,868)

(220,831,046)

(249,007,874)

    Gross profit

181,381,449

222,457,824

51,921,648

58,141,939

Selling expenses

(1,458,658)

(728,232)

(367,380)

(292,992))

General and administrative expenses

(23,816,148)

(20,564,820)

(6,495,472)

(6,802,224)

Research and development expenses

(21,061,345)

(29,434,680)

(2,756,980)

(2,366,232)

    Total operating expenses

(46,336,151)

(50,727,732)

(9,619,832)

(9,461,448)

    Operating income

135,045,298

171,730,092

42,301,816

48,680,491

Interest income

8,221,532

10,984,980

1,370,540

2,436,123

Interest expense

(42,704,097)

(41,518,878)

(10,712,778)

(10,459,305)

Foreign currency exchange gains (losses)

(2,237,541)

(1,938,807)

(1,214,553)

(1,745,661)

Forward contract gains/(losses)

653,569

(1,067,162)

(442,396)

Change in fair value of warrants liability

(1,871,074)

(2,397,256)

Government

2,991,493

2,723,495

1,439,298

1,399,283

    Total non-operating income, net

(33,075,044)

(32,687,446)

(9,117,493)

(11,209,222))

    Income before income taxes

101,970,254

139,042,646

33,184,323

37,471,269

Income tax expense

(18,237,975)

(18,266,277)

(6,369,171)

(1,685,597)

    Net income

83,732,279

120,776,369

26,815,152

35,785,672

Earnings per common share:

Basic and diluted

1.27

1.85

0.41

0.54

Net Income

83,732,279

120,776,369

26,815,152

35,785,672

Other comprehensive income

Foreign currency translation adjustment, net of nil income taxes

(32,118,459)

(12,268,113)

(15,606,469)

(6,406,925)

Comprehensive income

51,613,820

108,508,256

11,208,683

29,378,747

 

 

CHINA XD PLASTICS COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

Years Ended December 31,

2015

2014

US$

US$

Cash flows from operating activities:

Net income

83,732,279

120,776,369

Adjustments to reconcile net income to net cash provided by operating activities:

Net reversal for doubtful accounts

(69,281)

(35,849)

Depreciation and amortization

27,540,212

22,916,893

Stock-based compensation

1,044,162

1,003,040

Loss on change in fair value of warrants liability

-

1,871,074

Amortization of discount and issuance cost of the Notes

1,086,010

898,634

Loss on change in fair value of forward contract

-

2,435

Foreign currency exchange losses (gains)

2,720,131

2,051,596

Losses on disposals of property, plant and equipment

9,036

10,292

Deferred income tax benefit

(2,380,236)

(2,018,757)

Change in operating assets and liabilities:

Restricted cash

4,011,349

(6,427,562)

Accounts receivable

(40,614,289)

72,318,976

Amounts due from a related party

(35,937)

-

Inventories

(58,103,919)

(109,198,972)

Prepaid expenses and other current assets

(4,542,796)

(3,719,794)

Other non-current assets

(371,872)

-

Bills payable

(8,119,365)

18,538,133

Accounts payable

116,133,982

32,823,457

Amounts due to a related party

8,167

-

Income taxes payable

3,889,710

(8,996,712)

Accrued expenses and other current liabilities

86,963,823

5,935,116

Deferred income

3,371,249

-

Other non-current liabilities

11,098,323

-

   Net cash provided by operating activities

227,370,738

148,748,369

Cash flows from investing activities:

Purchase of time deposits

(474,254,312)

(626,994,741)

Proceeds from maturity of time deposits

463,771,799

663,216,581

Purchases of and deposits for property, plant and equipment

(267,427,681)

(334,092,742)

Purchase of land use rights

(13,931,804)

(1,460,754)

Government grant related to the construction of Sichuan plant

11,499,000

-

   Net cash used in investing activities

(280,342,998)

(299,331,656)

Cash flows from financing activities:

Proceeds from bank borrowings

504,218,741

797,615,642

Repayment of bank borrowings

(339,528,477)

(831,932,534)

Proceeds from Senior Notes Payable

-

148,396,175

Payment of issuance costs of the Notes

-

(4,718,452)

Proceeds from exercise of Series A investor warrants

-

596,740

Proceeds from early exercise of  options

121,725

-

Release of restricted cash as collateral for bank borrowings

-

10,022,398

Placement of restricted cash as collateral for bank borrowings

(33,077,094)

(20,612,868)

   Net cash provided by financing activities

131,734,895

99,367,101

Effect of foreign currency exchange rate changes on cash and cash equivalents

(4,290,762)

1,126,894

Net increase (decrease) in cash and cash equivalents

74,471,873

(50,089,292)

Cash and cash equivalents at beginning of year

45,456,612

95,545,904

Cash and cash equivalents at end of year

119,928,485

45,456,612

Supplemental disclosure of cash flow information:

Interest paid, net of RMB 231,356, RMB 113,317 and nil capitalized for the years ended December 31, 2015, 2014 and 2013, respectively

40,136,978

33,537,952

Income taxes paid

8,982,167

29,288,894

Non-cash investing and financing activities:

Government grant related to construction in the form of repayment of bank loans on behalf of the Company by the government (note 13)

38,118,231

-

Government grant related to the construction of Sichuan plant in the form of restricted cash (note 13)

11,117,817

-

Accrual for purchase of equipment

41,251,663

-

Accrual for issuance cost of the Notes

-

202,712

 

 

CHINA XD PLASTICS COMPANY LIMITED

Reconciliation of Net Income to EBITDA

Three Months Ended

Years Ended

December 31,

December 31,

2015

2014

2015

2014

Net income

$26,815,152

$35,785,672

$83,732,279

$120,776,369

Interest expense

10,712,778

10,459,305

42,704,097

41,518,878

Income tax expense

6,369,171

1,685,597

18,237,975

18,266,277

Depreciation and amortization expense

7,254,119

5,907,853

27,540,212

22,916,893

EBITDA

51,151,220

53,838,427

172,214,563

203,478,417

 

SOURCE China XD Plastics Company Limited



RELATED LINKS

http://www.chinaxd.net