– Revenue of $144.8
million –
HARBIN, China, June 29, 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 first
quarter ended March 31, 2020.
First Quarter 2020 Financial
Highlights
- Revenue was $144.8 million, a decrease of 52.0% YoY and a
decrease of 53.4% sequentially
- Gross profit was $5.2 million, a decrease of 89.7% YoY and
a decrease of 88.1%
sequentially
- Gross margin of 3.6%, a decrease of 13.1% YoY and a
decrease of 10.5% sequentially
- Net loss was $11.0 million, compared to net income of
$11.0 million in the same period last
year and net loss of $65.0
million sequentially
- EBITDA was $21.7 million, a
decrease of 54.4% YoY and an increase of 179.5% sequentially. A
description of the adjustments from GAAP net loss to EBITDA is
detailed in the table captioned "Reconciliation of GAAP and
Non-GAAP Results" following this press release.
- Total volume shipped was 28,326 metric tons, down 70.0% YoY and
a decrease of 57.7% sequentially
"Due to the COVID-19 pandemic, China's auto industry was hit hard with
production and sales decreased by 45.2% and 42.4%, respectively for
the first quarter of 2020. The Company's manufacturing facilities
in Harbin and Sichuan were temporarily shut down in February
and March 2020 while our Dubai facilities' operation has been suspended
since early February 2020, pursuant
to the local government directives. During the first quarter of
2020, the Company's revenue decreased by 52.0%, and our domestic
sales decreased by 51.1% in all regions, as compared to the same
period of the last year. The Company has taken proactive
measures to respond to these changes from the supply disruption and
the decreased orders of auto industry. We continued to promote
sales of high-priced semi-finished goods in domestic market during
the first quarter of 2020. We are pleased to see an overall
increase of 65.6% in the average RMB selling price of our products,
to partially offset the decreased sales volume of 70.0%.
"
"Meanwhile, China XD has responded to the COVID-19 pandemic by
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."
"We also resumed our commitment to completing our industrial
project for upgrading existing equipment for 100,000 metric tons of
engineering plastics by the end of third quarter of this year, and
our Qinling Road Project and Jiangnan Road Project for equipment
upgrade and factory revamping by the end of the fourth quarter of
2020, thus bringing the production capacity in Heilongjiang Campus
back to 390,000 metric tons. At the same time, we expect to
complete additional 10 production lines in our Sichuan plant by the end of the fourth quarter
of this year, thus to bring the total capacity of Sichuan base to 300,000 metric
tons. Together with the production capacity ramp up in
Dubai, 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 big banks to successfully execute our
expansion strategy in multiple regions and sectors, and to be
confident with our core market positioning and expanded platform
for growth," Mr. Han
concluded.
First Quarter 2020 Results
Revenues
Revenues were US$144.8 million in
the first quarter ended March 31,
2020, a decrease of US$156.7
million, or 52.0%, compared to US$301.5 million in the same period of last
year. This was due to the decrease of 70.0% in sales volume,
and 5.5% negative impact from exchange rate due to depreciation of
RMB against US dollars, partially offset by an increase of 65.6% 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 March 31,
2020, revenue from domestic market decreased by US$151.1 million or 51.1% as a combined result
of: (i) a decrease of 69.8% in sales volume; (ii) a
depreciation of RMB against USD by 5.5%; and partially offset by
(iii) an increase of 67.4% 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 45.2% and 42.4%,
respectively, for the first quarter of 2020 as compared to the same
period of 2019. Due to the severe impact of COVID-19 pandemic, the
macroeconomic conditions were exacerbated sharply resulting in
ceased auto production and slack consumer market. The Company has
temporarily closed its manufacturing facilities corporate offices
in accordance with the requirement of the PRC government beginning
in early February, with limited support from the Company's
employees, delayed access to raw material supplies and inability to
deliver products to customers on a timely basis, the Company's
business was negatively impacted and has generated lower
revenue during the period from February to April 2020.
Our domestic sales during the first quarter of 2020 severely
decreased by 51.1% in all regions, as compared to the same period
of the prior year, including decrease of sales by 58.6% in
Northeast China, 26.1% in
North China, 43.7% in East China,
74.9% in South China, 74.5% in
Central China, and 64.7% in
Southwest China for the
three-month period ended March 31,
2020 as compared to the same period of 2019.
As for the RMB selling price, the increase of 67.4% was mainly
due to sales of high-priced semi-finished goods in domestic market
during the three months ended March 31,
2020.
(ii) Overseas market
For the three months ended March 31,
2020, revenues from overseas market was US$0.2 million as compared to US$5.8 million of that in 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.
After a successful trial production at our production base in
Dubai in November 2018, the Company has
established business relationships with new customers in UAE
and India, and shipped products to
the end users in Europe and
Southeast Asia.
Premium products (PA66, PA6, POM, PPO, Plastic Alloy and PLA) in
total accounted for 93.2% of revenues from sales of finished goods
in the first quarter of 2020, compared to 82.7% 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, 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$5.2 million in
the quarter ended March 31, 2020,
compared to US$50.3 million in the
same period of 2019, representing a decrease of 89.7% or
US$45.1 million. Our gross
margin decreased sharply to 3.6% during the quarter ended
March 31, 2020 from 16.7% during the
same quarter of 2019 primarily due to (i) the decreased sales of
finished goods as a result of COVID-19 pandemic; (ii) increased
cost for idle capacity as a result of shutdown.
General and administrative (G&A) expenses were US$6.0 million in the quarter ended March 31, 2020 compared to US$8.8 million in the same period in 2019,
representing a decrease of 31.8%, or US$2.8
million. The decrease was primarily due to the decrease of
US$2.9 million in salary and welfare
as a result of management's cost reduction measure to cope with
impact form the COVID-19.
Research and development expenses were US$3.8 million in the quarter ended March 31, 2020 compared with US$10.1 million in the same period in 2019,
representing a decrease of US$6.3
million, or 62.4%. This decrease was due to (i) a decrease
of US$5.9 million in raw materials
consumption, (ii) a decrease of US$0.1
million in salary and welfare for R&D personnel, and
(iii) a decrease of US$0.3 million in
depreciation. As of March 31,
2020, the number of ongoing research and development
projects was 325.
Total operating loss was US$4.7 million in the first quarter ended
March 31, 2020 compared to operating
income of $31.2 million in the
same period of 2019, representing a decrease of 115.1% or
US$35.9 million. This decrease is
primarily due to the lower gross margin, and partially offset by
the lower operating expenses.
Net interest expenses were US$17.6
million for the three-month period ended March 31, 2020, compared to $17.1 million in the same period of 2019,
representing an increase of 2.9% or US$0.5
million, primarily due to (i) the increase of average
short-term and long-term loan balance in amount of US$999.4 million for the three months ended
March 31, 2020 compared to
US$990.1 million for the same period
in 2019; (ii) the increase of interest expense resulting from the
average loan interest rate increased to 5.55% for the three months
ended March 31, 2020 compared to
4.91% of the same period in 2019; (iii) the decrease of
average deposit balance in amount of US$207.4 million for the first quarter ended
March 31, 2020 compared to
US$242.4 million for the same period
in prior year; and (iv) the decrease of interest income
resulting from the average deposit interest rate decreased to 0.63%
for the first quarter ended March 31,
2020 compared to 0.72% of the same period in 2019.
The effective income tax rates for the three-month periods ended
March 31, 2020 and 2019 were negative
8.8% and 24.9%, respectively. The effective income tax rate
decreased significantly from 24.9% for the three-month period ended
March 31, 2019 to negative 8.8% for
the three-month period ended March 31,
2020, primarily due to the operating loss incurred as a
result of the COVID-19 pandemic.
Net loss was US$11.0 million in
the first quarter of 2020 compared to a net income of
US$11.0 million in the same quarter
of 2019, representing a decrease of US$22.0
million, or 200.0%. Basic and diluted losses per share for
the first quarter of 2020 were both US$0.16, compared to US$0.16 earnings per share per share for the same
period of 2019.
The average number of shares used in the computation of basic
and diluted losses per share for the three months ended
March 31, 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 $21.7 million for the
first quarter of 2020, compared of $47.6
million for the same period of 2019, representing a decrease
of $25.9 million, or 54.4%. 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 March 31, 2020, the Company
had US$190.4 million in the total
amount of cash and cash equivalents and restricted cash, a decrease
of US$38.0 million or 16.6% as
compared to US$228.4 million as of
December 31, 2019,mainly due to the
operating cash outflows. As of March 31,
2020, working capital was US$34.1
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 1.0 as of December 31, 2019. Stockholders' equity as of
March 31, 2020 was US$812.8 million, decreased by 2.8% as compared
to US$836.4 million of December 31, 2019 primarily due to the net loss
incurred during the three-month period ended March 31, 2020 due to the negative impact of
COVID-19 pandemic.
Prepaid expenses and other current assets increased by 40.7% or
US$69.9 million primarily because (i)
advances to suppliers for purchasing raw materials increased by
US$111.9 million; partially offset by
(ii) a decrease of US$42.6 million of
receivables from Hong Kong Grand Royal Trading Co., Ltd. Accrued
expenses and other current liabilities increased by 40.5% mainly
due to the increase of US$28.0
million of contract liabilities and the increase of
US$6.1 million accrued freight
expenses. The aggregate short-term and long-term bank loans
increased by 1.5% due to using the line of credits to support
operating and investing activities in HLJ Xinda Group and Sichuan
Xinda. We define the manageable debt level as the sum of aggregate
short-term and long-term loans over total assets.
Recent Development
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. Linyuan Zhai, 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 33.4% and 31.14% for the first four months
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 had a 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 Monday,
June 29, 2020, to discuss its first 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.
Participants can register for the conference call by navigating
to http://apac.directeventreg.com/registration/event/8719069.
Once preregistration has been completed, participants will receive
dial-in numbers, an event passcode, and a 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 July 7th, 2020 by calling
+ 1-855-452-5696 (for callers in the U.S.), + +61 2
8199 0299 (for International callers) and entering
passcode 8719069
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 March
31,2020, 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
|
|
|
|
March
31,
2020
|
|
December
31,
2019
|
|
|
US$
|
|
US$
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
12,207,324
|
|
|
|
17,201,775
|
|
Restricted
cash
|
|
|
178,226,530
|
|
|
|
211,231,244
|
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
|
240,122,877
|
|
|
|
222,072,053
|
|
Inventories
|
|
|
630,113,470
|
|
|
|
642,509,534
|
|
Prepaid expenses and
other current assets
|
|
|
241,746,951
|
|
|
|
171,848,122
|
|
Total current
assets
|
|
|
1,302,417,152
|
|
|
|
1,264,862,728
|
|
Property, plant and
equipment, net
|
|
|
820,918,992
|
|
|
|
830,319,716
|
|
Long-term prepayments
to equipment and construction suppliers
|
|
|
501,506,656
|
|
|
|
495,570,421
|
|
Operating lease
right-of-use assets, net
|
|
|
43,397,951
|
|
|
|
44,149,955
|
|
Other non-current
assets
|
|
|
736,405
|
|
|
|
979,428
|
|
Total
assets
|
|
|
2,668,977,156
|
|
|
|
2,635,882,248
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Short-term bank
loans, including current portion of long-term
bank loans
|
|
|
672,728,013
|
|
|
|
680,174,859
|
|
Bills
payable
|
|
|
361,060,465
|
|
|
|
400,671,063
|
|
Accounts
payable
|
|
|
63,095,261
|
|
|
|
57,458,673
|
|
Amounts due to
related parties
|
|
|
25,856,105
|
|
|
|
26,251,919
|
|
Income taxes
payable
|
|
|
22,473,490
|
|
|
|
26,458,837
|
|
Operating lease
liabilities, current
|
|
|
1,417,224
|
|
|
|
1,388,555
|
|
Accrued expenses and
other current liabilities
|
|
|
121,655,283
|
|
|
|
86,550,388
|
|
Total current
liabilities
|
|
|
1,268,285,841
|
|
|
|
1,278,954,294
|
|
Long-term bank loans,
excluding current portion
|
|
|
345,155,760
|
|
|
|
322,456,413
|
|
Deferred
income
|
|
|
90,031,695
|
|
|
|
92,639,620
|
|
Operating lease
liabilities, non-current
|
|
|
14,336,361
|
|
|
|
14,429,434
|
|
Mandatorily
redeemable noncontrolling interests
|
|
|
45,870,912
|
|
|
|
—
|
|
Other non-current
liabilities
|
|
|
92,544,380
|
|
|
|
91,028,376
|
|
Total
liabilities
|
|
|
1,856,224,949
|
|
|
|
1,799,508,137
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Series B preferred
stock
|
|
|
100
|
|
|
|
100
|
|
Common stock,
US$0.0001 par value, 500,000,000 shares
authorized, 66,969,841 shares issued, 66,948,841 shares
outstanding as of March 31, 2020 and December 31, 2019,
respectively
|
|
|
6,697
|
|
|
|
6,697
|
|
Treasury stock,
21,000 shares at cost
|
|
|
(92,694)
|
|
|
|
(92,694)
|
|
Additional paid-in
capital
|
|
|
184,208,447
|
|
|
|
184,208,447
|
|
Retained
earnings
|
|
|
709,120,874
|
|
|
|
720,159,368
|
|
Accumulated other
comprehensive loss
|
|
|
(80,491,217)
|
|
|
|
(67,907,807)
|
|
Total stockholders'
equity
|
|
|
812,752,207
|
|
|
|
836,374,111
|
|
Commitments and
contingencies
|
|
|
—
|
|
|
|
—
|
|
Total liabilities and
stockholders' equity
|
|
|
2,668,977,156
|
|
|
|
2,635,882,248
|
|
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME (LOSS)
|
|
|
|
Three-Month Period
Ended
March 31,
|
|
|
2020
|
|
2019
|
|
|
US$
|
|
US$
|
|
|
|
|
|
Revenues
|
|
|
144,837,678
|
|
|
|
301,466,007
|
|
Cost of
revenues
|
|
|
(139,599,821)
|
|
|
|
(251,136,339)
|
|
Gross
profit
|
|
|
5,237,857
|
|
|
|
50,329,668
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
|
(115,911)
|
|
|
|
(277,820)
|
|
General and
administrative expenses
|
|
|
(6,030,126)
|
|
|
|
(8,775,385)
|
|
Research and
development expenses
|
|
|
(3,841,792)
|
|
|
|
(10,062,186)
|
|
Total operating
expenses
|
|
|
(9,987,829)
|
|
|
|
(19,115,391)
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
(4,749,972)
|
|
|
|
31,214,277
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
265,622
|
|
|
|
435,779
|
|
Interest
expense
|
|
|
(17,916,189)
|
|
|
|
(17,500,277)
|
|
Foreign currency
exchange gains (losses)
|
|
|
2,368,139
|
|
|
|
(2,140,865)
|
|
Gains on disposal of
a subsidiary
|
|
|
—
|
|
|
|
518,491
|
|
Government
grant
|
|
|
9,882,937
|
|
|
|
2,094,937
|
|
Total non-operating
expense, net
|
|
|
(5,399,491)
|
|
|
|
(16,591,935)
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
|
(10,149,463)
|
|
|
|
14,622,342
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
(889,031)
|
|
|
|
(3,641,627)
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
(11,038,494)
|
|
|
|
10,980,715
|
|
Earnings (loss)
per common share:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
(0.16)
|
|
|
|
0.16
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
(11,038,494)
|
|
|
|
10,980,715
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss)
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of nil income
taxes
|
|
|
(12,583,410)
|
|
|
|
14,670,801
|
|
Comprehensive
income (loss)
|
|
|
(23,621,904)
|
|
|
|
25,651,516
|
|
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
Three-Month Period
Ended March
31,
|
|
|
2020
|
|
2019
|
|
|
US$
|
|
US$
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net cash (used in)
provided by operating activities
|
|
|
(89,161,481)
|
|
|
|
66,949,790
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchase of and
deposits for property, plant and equipment
|
|
|
(20,075,023)
|
|
|
|
(11,471,899)
|
|
Cash disposed for
sales of a subsidiary
|
|
|
—
|
|
|
|
(3,217)
|
|
Net cash used in
investing activities
|
|
|
(20,075,023)
|
|
|
|
(11,475,116)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from bank
borrowings
|
|
|
167,239,924
|
|
|
|
357,291,327
|
|
Repayment of bank
borrowings
|
|
|
(139,844,356)
|
|
|
|
(281,123,795)
|
|
Proceeds from
interest-free advances from a related party
|
|
|
—
|
|
|
|
289,298
|
|
Capital injection
from noncontrolling interests
|
|
|
46,621,719
|
|
|
|
—
|
|
Payments of issuance
cost for syndicated loans
|
|
|
126,012
|
|
|
|
—
|
|
Net cash provided
by financing activities
|
|
|
74,143,299
|
|
|
|
76,456,830
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign
currency exchange rate changes on cash,
cash equivalents, and
restricted cash
|
|
|
(2,905,960)
|
|
|
|
7,289,967
|
|
Net (decrease)
increase in cash, cash equivalents, and
restricted cash
|
|
|
(37,999,165)
|
|
|
|
139,221,471
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
190,433,854
|
|
|
|
506,213,311
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
Interest paid, net of
capitalized interest
|
|
|
14,824,755
|
|
|
|
13,316,939
|
|
Income taxes
paid
|
|
|
3,483,082
|
|
|
|
2,276,847
|
|
Non-cash investing
and financing activities:
|
|
|
|
|
|
|
|
|
Accrual for purchase
of equipment and construction
included in accrued expenses and other current
liabilities
|
|
|
5,359,491
|
|
|
|
1,181,670
|
|
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.
|
|
|
|
|
|
|
March
31,
|
|
March
31,
|
|
|
2020
|
|
2019
|
|
|
US$
|
|
US$
|
Cash and cash
equivalents
|
|
|
12,207,324
|
|
|
|
78,891,580
|
|
Restricted
cash
|
|
|
178,226,530
|
|
|
|
427,321,731
|
|
Total cash, cash
equivalents, and restricted cash
shown in the statement of cash flows
|
|
|
190,433,854
|
|
|
|
506,213,311
|
|
|
|
|
|
|
|
|
|
|
CHINA XD PLASTICS
COMPANY LIMITED
|
RECONCILIATION OF
GAAP AND NON-GAAP RESULTS
|
(Amounts expressed
in United States Dollars)
|
|
|
Three-Month Period
Ended
|
|
March
31,
|
|
2020
|
2019
|
|
|
|
Net income (loss)
-GAAP
|
$
(11,038,494)
|
$
10,980,715
|
Interest
expense
|
17,916,189
|
17,500,277
|
Provision for income
taxes
|
889,031
|
3,641,627
|
Depreciation and
amortization expense
|
13,584,604
|
15,326,044
|
Amortization of
operating lease right-of-use
assets
|
313,186
|
156,566
|
EBITDA
|
21,664,516
|
47,605,229
|
View original
content:http://www.prnewswire.com/news-releases/specialty-chemical-company-china-xd-plastics-announces-first-quarter-2020-financial-results-301084876.html
SOURCE China XD Plastics Company Limited