Boston, MA 08/13/2014 (wallstreetpr) – China XD Plastics Co Ltd (NASDAQ:CXDC) announced the second quarter results ended June 30, 2014. The Company reported a net income of $19.8 million on total revenues of $264.2 million.
Operational Highlights
During the quarter, revenues were up by 30.7% to $264.2 million (2Q2013: $202.2 million) due to rising in sales volume and increase in average RMB selling price. Sales volume increased by 16.3% as a result of strong demand in the Chinese automotive industry and the shift in products mix towards advanced polymers increased the average selling price by 13.6%.
Moreover, a significant increase in revenues from Northeast China (+19%) and East China (+45.4%) further support the overall revenue growth. In addition, China XD Plastics sold products of $20 million in the Korean market, which account 7.6% of total revenue during the quarter.
Ongoing shift in product mix and reduced sales discount over lower-end products drove the gross margin to 19.8% from 18.4% in 2Q2013. The Company reported EBITDA for 2Q2014 was $41.8 million, up by 14.2% from $36.6 million in 2Q2013 due to top-line growth that offset the higher R&D costs and G&A expenses.
But, China XD Plastics Co Ltd (NASDAQ:CXDC) reported marginal decline in net earnings of $19.8 million and diluted EPS of $0.30 versus net earnings of $20.8 million and diluted EPS of $0.32 in 2Q2013.
Financial Overview
China XD Plastics generated cash of $61.3 million from its operation and used cash of $86.4 million in capital expenditure. The Company generated cash with positive operating cash flow and proceeds from bank borrowings and the issuance of notes.
China XD Plastics Co Ltd (NASDAQ:CXDC) had cash and cash equivalents of $132.8 million, time deposits of $376.1 million and working capital of $576.8 million as of June 30, 2014.
Future Outlook
China XD Plastics Co Ltd (NASDAQ:CXDC) expects positive growth trend in the Chinese automotive industry and the addition of advanced product will further enhance the Company’s performance in coming years. Based on the positive outlook, China XD Plastics expects sales of $0.95-$1.05 billion and net income of $100-$120 million in FY2014.
