HARBIN, China, Nov. 16, 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 third
quarter ended September 30, 2020.
Third Quarter 2020 Financial
Highlights
- Revenue was $290.1 million, a decrease of 22.3% YoY and an
increase of 2.4% sequentially
- Gross profit was $34.6 million, a decrease of 42.4% YoY
and a decrease of 13.3% sequentially
- Gross margin was 11.9%, decrease of 4.2% YoY and a decrease of
2.2% sequentially
- Net loss was $38.0 million,
compared to net income of $17.0
million in the same period last year and net income of
$17.6 million sequentially
- EBITDA was negative $0.07
million, a decrease of 100.2% YoY and a decrease of 100.2%
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 83,855 metric tons, down 8.9% YoY and
an increase of 48.4% sequentially
Third Quarter 2020 Results
Revenues
Revenues were US$290.1 million in
the third quarter ended September 30,
2020, a decrease of US$83.1
million, or 22.3%, compared to US$373.2 million in the same period of last year.
This was due to the decrease of 8.9% in sales volume and a decrease
of 16.5% in the average RMB selling price of our products, as
compared with those of the same period of last year, partially
offset by an appreciation of RMB against USD by 1.8%.
(i) Domestic market
For the three-month period ended September 30, 2020, revenue from domestic market
decreased by US$62.4 million or 17.7%
compared with that in the same period of last year, as a result of
(i) a decrease of 6.6% in sales volume; and (ii) a decrease of
13.8% in the average RMB selling price of our products, as compared
with those of last year; partially offset by (iii) an
appreciation of RMB against USD by 1.1%.
According to the China Association of Automobile Manufacturers,
automobile production and sales in China decreased by 6.7% and 6.9%,
respectively, for the first nine months 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.
Thanks to our positive efforts to expand our customer bases and to
meet their new requirements, the Company has begun to recover
slowly after May 2020. We
had increase in sales by 43.9% in Southwest China and 19.3% in East China,
except a decrease in sales by 71.2% in Northeast China, 45.7% in Central China , 27.7% in North China and
0.8% in South China for the
three-month period ended September 30,
2020 as compared to the same period of 2019.
As for the RMB selling price, the decrease of 13.8% was
mainly due to Company's marketing strategy to offer discount sales
to receive more orders in order to accelerate inventory
turnover and replenish operating funds in domestic market
during the three-month period ended September 30, 2020.
(ii) Overseas market
For the three-month period ended September 30, 2020, revenues from overseas market
US$0.2 million as compared to
US$20.9 million of 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 85.3% of revenues from sales of finished goods
in the third quarter of 2020, compared to 86.7% 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 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$34.6 million
in the third quarter ended September 30,
2020, compared to US$60.1
million in the same period of 2019, representing a decrease
of US$25.5 million or 42.4%. Our
gross margin decreased to 11.9% during the third quarter ended
September 30, 2020 from 16.1% during
the same quarter of 2019 primarily due to more sales of higher-end
products and more sales of semi-finished goods during the
third quarter of 2019, and the increased cost for idle capacity as
a result of shutdown.
General and administrative (G&A) expenses were US$11.0 million for the quarter ended
September 30, 2020 compared to
US$6.0 million in the same period in
2019, representing an increase of 83.3%, or US$5.0 million. The increase was primarily due to
the US$4.19 million of share based
compensation cost recognized in the third quarter of 2020.
Provision for doubtful accounts was US$6.8 million for the quarter ended September 30, 2020 compared to nil in the same
period of 2019. As of September 30,
2020, accounts receivable of US$2.0
million from the Company's two customers in UAE and
US$4.8 million from the Company's
customer in PRC was overdue for more than 12 months. Based on
assessment of the collectability of the amounts due from the
customers, the Company provided an allowance for doubtful accounts
of US$6.8 million for the period
ended September 30, 2020.
Provision for long-term prepayments to equipment and
construction suppliers was US$21.8
million for the quarter ended September 30, 2020 compared to nil in the same
period of 2019. On October 20, 2016,
Sichuan Xinda entered into an equipment purchase agreement purchase
contract with Peaceful for a total consideration of RMB89.8 million (equivalent to US$12.7 million), and on May 31, 2019, Dubai Xinda entered into an
equipment purchase contract with Peaceful for a total consideration
of US$18.8 million to purchase
production and testing equipment. As of September 30, 2020, Peaceful failed to deliver
the equipments under the purchase agreements. Based on the
assessment of the realizability of the prepayments, the Company
recognized a provision of US$21.8
million for the period ended September 30, 2020.
Research and development expenses were US$4.4 million in the quarter ended September 30, 2020 compared with US$19.9 million in the same period in 2019,
representing a decrease of US$15.5
million, or 77.9%. This decrease was due to (i) a decrease
of US$14.9 million in raw materials
consumption, (ii) a decrease of US$0.4
million in depreciation, and (iii) a decrease of
US$0.2 million in salary and welfare
for R&D personnel. As of September 30,
2020, the number of ongoing research and development
projects was 347.
Total operating income was negative US$9.7 million in the third quarter ended
September 30, 2020 compared to
US$33.8 million in the same period of
2019, representing a decrease of 128.7% or US$43.5 million. This decrease is
primarily due to the lower gross profit and the higher
operating expenses.
Net interest expenses were US$22.3
million for the three-month period ended September 30, 2020, compared to US$16.7 million in the same period of 2019,
representing a increase of 33.5% or US$5.6
million, primarily due to (i) the increase of average loan
interest rate from 4.70% of the same period in 2019 to 6.41% for
the three-month period ended September 30,
2020 and (ii) the increase of average short-term and
long-term loan balance in the amount of US$1,326.3 million for the three-month period
ended September 30, 2020 compared to
US$915.6 million of the same period
in 2019.
The effective income tax rates for the three-month periods ended
September 30, 2020 and 2019 were
negative 4.5% and 24.8%, respectively. The decrease of effective
income tax rate was primarily due to the increased loss before
income taxes from Dubai Xinda and decreased income before taxes
from HLJ Xinda Group and Sichuan Xinda.
Net loss was US$38.0 million in
the third quarter of 2020 compared to a net income of
US$17.0 million in the same quarter
of 2019, representing a decrease of US$55.0
million, or 323.5%. Basic and diluted losses per share for
the third quarter of 2020 were both US$0.56, compared to US$0.25 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
September 30, 2020 was 67.9 million,
compared to 51.8 million shares for earnings per share in the prior
year period.
Earnings before interest, tax, depreciation and amortization
(EBITDA) was negative $0.07 million
for the third quarter of 2020, compared of $54.6 million for the same period of 2019,
representing a decrease of $54.7
million, or 100.2%. 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 September 30, 2020, the
Company had US$385.2 million in the
total amount of cash and cash equivalents, restricted cash and time
deposits, representing an increase of US$156.8 million or 68.7% as compared to
US$228.4 million as of December 31, 2019, mainly due to the financing
activity cash inflows. As of September 30,
2020, working capital was US$307.5
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
September 30, 2020 was US$877.3 million, increased by 4.8% as compared
to US$836.4 million as of
December 31, 2019, primarily due to
the increase of US$48.0 million
noncontrolling interests.
Prepaid expenses and other current assets increased by 113.2% or
US$194.5 million primarily because
(i) receivables due from third parties increased by US$278.2 million, partially offset by (ii) a
decrease of US$42.6 million of
receivables from Hong Kong Grand Royal Trading Co., Ltd., and (iii)
a decrease of US$40.0 million of
advances to suppliers for purchasing raw materials. The aggregate
short-term and long-term bank loans increased by 39.5% 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 November 5, 2020, the Company
held a special meeting of stockholders, at which the Company's
stockholders voted, among other things, in favor of the proposal to
adopt the previously announced agreement and plan of merger (the
"Merger Agreement"), dated as of June 15,
2020, by and among the Company, Faith Dawn Limited, an
exempted company with limited liability incorporated under the laws
of the Cayman Islands ("Parent"),
and Faith Horizon Inc., a Nevada
corporation and wholly owned subsidiary of Parent ("Merger Sub"),
providing for the merger of the Merger Sub with and into the
Company, with the Company continuing as the surviving corporation
and as a wholly-owned subsidiary of Parent (the "Merger").
The Merger remains subject to various customary closing
conditions as set forth in the Merger Agreement. If and when
completed, the proposed merger would result in the Company becoming
a privately-held company and the common stock of the Company would
no longer be listed on the NASDAQ Global Market or any other
stock exchange, and price quotations with respect to shares of
Company common stock in the public market will no longer be
available
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 6.7% and
6.9% for the first nine 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 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.
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 September
30, 2020, 644 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
|
|
|
|
September
30,
2020
|
|
December
31,
2019
|
|
|
US$
|
|
US$
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
7,602,873
|
|
|
|
17,201,775
|
|
Restricted
cash
|
|
|
176,430,796
|
|
|
|
211,231,244
|
|
Time
deposits
|
|
|
201,171,789
|
|
|
|
-
|
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
|
149,802,760
|
|
|
|
222,072,053
|
|
Inventories
|
|
|
749,370,184
|
|
|
|
642,509,534
|
|
Prepaid expenses and
other current assets
|
|
|
366,344,216
|
|
|
|
171,848,122
|
|
Total current
assets
|
|
|
1,650,722,618
|
|
|
|
1,264,862,728
|
|
Property, plant and
equipment, net
|
|
|
856,810,772
|
|
|
|
830,319,716
|
|
Long-term prepayments
to equipment and construction suppliers
|
|
|
460,192,667
|
|
|
|
495,570,421
|
|
Operating lease
right-of-use assets, net
|
|
|
43,866,789
|
|
|
|
44,149,955
|
|
Other non-current
assets
|
|
|
1,290,637
|
|
|
|
979,428
|
|
Total
assets
|
|
|
3,012,883,483
|
|
|
|
2,635,882,248
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Short-term bank
loans, including current portion of long-term
bank loans
|
|
|
795,499,641
|
|
|
|
680,174,859
|
|
Bills
payable
|
|
|
359,333,930
|
|
|
|
400,671,063
|
|
Accounts
payable
|
|
|
50,305,643
|
|
|
|
57,458,673
|
|
Amounts due to
related parties
|
|
|
25,021,305
|
|
|
|
26,251,919
|
|
Income taxes
payable
|
|
|
27,766,272
|
|
|
|
26,458,837
|
|
Operating lease
liabilities, current
|
|
|
1,639,613
|
|
|
|
1,388,555
|
|
Accrued expenses and
other current liabilities
|
|
|
83,629,216
|
|
|
|
86,550,388
|
|
Total current
liabilities
|
|
|
1,343,195,620
|
|
|
|
1,278,954,294
|
|
Long-term bank loans,
excluding current portion
|
|
|
602,953,010
|
|
|
|
322,456,413
|
|
Deferred
income
|
|
|
90,559,854
|
|
|
|
92,639,620
|
|
Operating lease
liabilities, non-current
|
|
|
14,156,674
|
|
|
|
14,429,434
|
|
Other non-current
liabilities
|
|
|
84,685,855
|
|
|
|
91,028,376
|
|
Total
liabilities
|
|
|
2,135,551,013
|
|
|
|
1,799,508,137
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Series B preferred
stock
|
|
|
100
|
|
|
|
100
|
|
Common stock,
US$0.0001 par value, 500,000,000 shares authorized,
70,548,841 shares issued, 66,948,841 shares outstanding as
of September 30, 2020 and December 31, 2019,
respectively
|
|
|
7,057
|
|
|
|
6,697
|
|
Treasury stock,
21,000 shares at cost
|
|
|
(92,694)
|
|
|
|
(92,694)
|
|
Additional paid-in
capital
|
|
|
188,396,687
|
|
|
|
184,208,447
|
|
Retained
earnings
|
|
|
688,463,772
|
|
|
|
720,159,368
|
|
Accumulated other
comprehensive loss
|
|
|
(47,489,720)
|
|
|
|
(67,907,807)
|
|
Total equity
attributable to China XD Plastics Company
Limited
|
|
|
829,285,202
|
|
|
|
836,374,111
|
|
Noncontrolling
interest
|
|
|
48,047,268
|
|
|
|
-
|
|
Total stockholders'
equity
|
|
|
877,332,470
|
|
|
|
836,374,111
|
|
Commitments and
contingencies
|
|
|
-
|
|
|
|
-
|
|
Total liabilities and
stockholders' equity
|
|
|
3,012,883,483
|
|
|
|
2,635,882,248
|
|
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
|
|
|
Three-Month Period
Ended
September 30,
|
|
|
Nine-Month Period
Ended
September 30,
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
290,054,815
|
|
|
373,159,091
|
|
|
718,116,480
|
|
|
1,137,698,978
|
Cost of
revenues
|
|
(255,491,692)
|
|
|
(313,044,518)
|
|
|
(638,423,810)
|
|
|
(961,994,051)
|
Gross
profit
|
|
34,563,123
|
|
|
60,114,573
|
|
|
79,692,670
|
|
|
175,704,927
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
(368,188)
|
|
|
(431,070)
|
|
|
(530,248)
|
|
|
(956,300)
|
General and
administrative expenses
|
|
(10,963,304)
|
|
|
(5,999,123)
|
|
|
(20,670,460)
|
|
|
(20,539,101)
|
Provision for
doubtful accounts
|
|
(6,755,683)
|
|
|
-
|
|
|
(6,755,683)
|
|
|
-
|
Provision for
long-term prepayments to equipment and
construction suppliers
|
|
(21,836,662)
|
|
|
-
|
|
|
(21,836,662)
|
|
|
-
|
Research and
development expenses
|
|
(4,388,573)
|
|
|
(19,908,789)
|
|
|
(14,033,493)
|
|
|
(39,522,696)
|
Total operating
expenses
|
|
(44,312,410)
|
|
|
(26,338,982)
|
|
|
(63,826,546)
|
|
|
(61,018,097)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
(9,749,287)
|
|
|
33,775,591
|
|
|
15,866,124
|
|
|
114,686,830
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
622,371
|
|
|
338,033
|
|
|
963,419
|
|
|
1,228,169
|
Interest
expense
|
|
(22,926,549)
|
|
|
(17,036,345)
|
|
|
(56,757,282)
|
|
|
(46,595,864)
|
Foreign currency
exchange gains (losses)
|
|
(6,840,717)
|
|
|
4,065,890
|
|
|
(4,650,295)
|
|
|
4,975,637
|
Gains on disposal of
a subsidiary
|
|
-
|
|
|
-
|
|
|
-
|
|
|
518,491
|
Government
grant
|
|
2,444,278
|
|
|
1,405,284
|
|
|
13,669,488
|
|
|
5,111,437
|
Total non-operating
expense, net
|
|
(26,700,617)
|
|
|
(11,227,138)
|
|
|
(46,774,670)
|
|
|
(34,762,130)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
(36,449,904)
|
|
|
22,548,453
|
|
|
(30,908,546)
|
|
|
79,924,700
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
(1,623,473)
|
|
|
(5,583,240)
|
|
|
(627,514)
|
|
|
(11,867,455)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss)
|
|
(38,073,377)
|
|
|
16,965,213
|
|
|
(31,536,060)
|
|
|
68,057,245
|
Net income
attributable to noncontrolling interest
|
|
159,536
|
|
|
-
|
|
|
159,536
|
|
|
-
|
Net income (loss)
attributable to China XD Plastics
Company Limited
|
|
(38,232,913)
|
|
|
16,965,213
|
|
|
(31,695,596)
|
|
|
68,057,245
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per common share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
(0.56)
|
|
|
0.25
|
|
|
(0.47)
|
|
|
1.02
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(loss)
|
|
(38,073,377)
|
|
|
16,965,213
|
|
|
(31,536,060)
|
|
|
68,057,245
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment, net of nil income taxes
|
|
32,755,595
|
|
|
(22,690,259)
|
|
|
20,578,345
|
|
|
(24,732,543)
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss)
|
|
(5,317,782)
|
|
|
(5,725,046)
|
|
|
(10,957,715)
|
|
|
43,324,702
|
Comprehensive income
attributable to noncontrolling interest
|
|
319,794
|
|
|
-
|
|
|
319,794
|
|
|
-
|
Comprehensive income
(loss) attributable to China XD
Plastics Company Limited
|
|
(5,637,576)
|
|
|
(5,725,046)
|
|
|
(11,277,509)
|
|
|
43,324,702
|
CHINA XD PLASTICS
COMPANY LIMITED AND SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
Nine-Month Period
Ended
September
30,
|
|
|
2020
|
|
2019
|
|
|
US$
|
|
US$
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
Net cash (used in)
provided by operating activities
|
|
|
(234,697,237)
|
|
|
|
(183,155,418)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
Purchase of time
deposits
|
|
|
(195,963,439)
|
|
|
|
-
|
|
Purchase of and
deposits for property, plant and equipment
|
|
|
(20,573,681)
|
|
|
|
(54,255,192)
|
|
Refund of prepayment
for building purchase
|
|
|
-
|
|
|
|
15,810,261
|
|
Net proceeds from
sales of a subsidiary
|
|
|
-
|
|
|
|
7,296,921
|
|
Net cash used in
investing activities
|
|
|
(216,537,120)
|
|
|
|
(31,148,010)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
Proceeds from bank
borrowings
|
|
|
728,358,842
|
|
|
|
1,647,171,688
|
|
Repayments of bank
borrowings
|
|
|
(370,292,671)
|
|
|
|
(1,569,203,033)
|
|
Capital injection
from noncontrolling interests
|
|
|
46,487,677
|
|
|
|
-
|
|
Proceeds from
interest-free advances from related parties
|
|
|
1,258,743
|
|
|
|
79,969,718
|
|
Repayments of
interest-free advances from related parties
|
|
|
(3,069,331)
|
|
|
|
(68,543,743)
|
|
Payments of issuance
cost for syndicated loans
|
|
|
(126,012)
|
|
|
|
-
|
|
Net cash provided
by (used in) financing activities
|
|
|
402,617,248
|
|
|
|
89,394,630
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign
currency exchange rate changes on cash, cash equivalents
and restricted cash
|
|
|
4,217,759
|
|
|
|
(6,926,300)
|
|
Net (decrease)
increase in cash, cash equivalents and restricted
cash
|
|
|
(44,399,350)
|
|
|
|
(131,835,098)
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
184,033,669
|
|
|
|
235,156,742
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
Interest paid, net of
capitalized interest
|
|
|
50,809,802
|
|
|
|
46,534,262
|
|
Income taxes
paid
|
|
|
4,428,462
|
|
|
|
7,951,724
|
|
Non-cash investing
activities:
|
|
|
|
|
|
|
|
|
Accrual for purchase
of equipment and construction included in accrued
expenses and other current liabilities
|
|
|
6,124,869
|
|
|
|
1,794,800
|
|
Non-cash financing
activities:
|
|
|
|
|
|
|
|
|
Conversion of Series
D preferred stock to common stock
|
|
|
-
|
|
|
|
97,576,465
|
|
|
|
|
|
|
|
|
|
|
Reclassification of
mandatorily redeemable noncontrolling interest to
noncontrolling interest
|
|
|
47,723,235
|
|
|
|
-
|
|
|
|
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.
|
|
|
|
September
30,
|
|
|
2020
|
|
2019
|
|
|
US$
|
|
US$
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
7,602,873
|
|
|
|
10,509,402
|
|
Restricted
cash
|
|
|
176,430,796
|
|
|
|
224,647,340
|
|
Total cash, cash
equivalents, and restricted cash shown in the
statement of cash flows
|
|
|
184,033,669
|
|
|
|
235,156,742
|
|
CHINA XD PLASTICS
COMPANY LIMITED
|
RECONCILIATION OF
GAAP AND NON-GAAP RESULTS
|
(Amounts expressed
in United States Dollars)
|
|
|
Three-Month Period
Ended
|
|
September
30,
|
|
2020
|
2019
|
|
|
|
Net income
-GAAP
|
$
(38,073,377)
|
$
16,965,213
|
Interest
expense
|
22,926,549
|
17,036,345
|
Provision for income
taxes
|
1,623,473
|
5,583,240
|
Depreciation and
amortization expense
|
13,141,954
|
14,815,533
|
Amortization of
operating lease right-of-use assets
|
314,503
|
159,068
|
EBITDA
|
(66,898)
|
54,559,399
|
View original
content:http://www.prnewswire.com/news-releases/specialty-chemical-company-china-xd-plastics-announces-third-quarter-2020-financial-results-301173418.html
SOURCE China XD Plastics Company Limited