Boston, MA 03/26/2014 (wallstreetpr) – China XD Plastics Co Ltd (NASDAQ:CXDC) continues to register accelerated growth in the manufacture and sale of modified plastics, an indication of successful implementation of its strategic marketing plan. The accelerated growth has seen China XD Plastics register robust growth in revenue and earnings, as well as positive business development, which is expected to have an affirmative effect on the company’s stock in the market.
China XD Plastics Cementing its Position in the Automotive Industry
China XD Plastics Co Ltd (NASDAQ:CXDC) registered a decline in gross profit margins as result of its marketing strategy that involved huge amount of discounts on listed prices. Despite the decline in gross profit margin, the company continues to cement its position as one of the largest players in the supply of plastics to the automobile industry.
China XD Plastic’s progression can clearly be seen by a growth of 208.75% in fourth quarter revenue when compared to that of the same quarter the prior year. Full year revenue also surged 137.5%, clocking in a high of $1.05 billion.
China XD Plastics Building a New Production Facility
The company is also planning to venture more into the southwest China markets which contributed 3.7% of full year revenue. The fourth quarter of 2013 saw China XD Plastics breaking ground for the construction of its fourth base in Nanchong city. The production facility is to be commissioned in 2015 sure to increase the production capacity of the company.
The new production facility is expected to grow China XD Plastics’ production capacity to 300,000 metric tons annually, as well as adding a further 70 automatic production lines that are to be rolled out in a state of the art facility.
China XD Plastics 2014 Business Outlook
China XD Plastics Co Ltd (NASDAQ:CXDC) expects a better year in terms of production levels with revenues of between $950 million and $1.05 billion. China XD Plastics closed 2013 with cash and cash equivalent amounting to $95.6 million, $281.3 million in deposits in banks and $289.2 million in working capital.
