HARBIN, China, March 4 /PRNewswire-Asia/ -- China XD Plastics Company Ltd. ("China XD Plastics" or the "Company"), (Nasdaq: CXDC), the largest Chinese developer, manufacturer, and distributor of modified plastics primarily for use in the automotive applications in China, today announced the signing of a one-year non-exclusive agreement with Ningbo Huading New Material Technology Company Limited ("NHNM"). Under this agreement, NHNM will distribute the Company's modified plastics for automotive applications in the Eastern Chinese Market, specifically in the area of Zhejiang Province.
The Eastern Chinese market region accounts for approximately 25% of the demand for modified plastics for automotive applications in China, and are mostly used by large automobile parts manufacturers supplying Shanghai Automotive Industry Corporation Group ("SAIC Group"), Chery Auto, Geely Auto and others major OEMs in East China. Since late 2009, China XD Plastics started to supply modified plastics to NHNM's customers in small quantities, and will now expand into large volume deliveries.
Mr. Han, Chairman and CEO of China XD Plastics, commented, "NHNM is our sixth distributor to the Northeast and Northern Chinese market, and is our first distributor in the Eastern Chinese market. We look forward to continuing the expansion of our brand to reach into the East regions of China by leveraging their established sales network, in what we believe is strategically one of the most important regions in China. We expect to continue our geographic expansion plan as we gradually expand capacity to reach our goals for 2013, and we look forward to continue to deliver long lasting value to our shareholders."
NHNM is a plastic resin distributor with an extensive network in Eastern China, and specifically in Zhejiang Province. It has years of customer experience and an established distribution network in the region.
About China XD Plastics Company Ltd.
China XD Plastics Company Ltd., through its wholly owned subsidiary Harbin Xinda Macromolecule Material ("Xinda"), develops, manufactures, and distributes modified plastics, primarily for automotive applications. The Company's specialized plastics are used in the exterior and interior trim and in the functional components of more than 30 automobile brands manufactured in China including Audi, Red Flag, Volkswagen and Mazda. The Company's wholly-owned research institute is dedicated to the research and development of modified plastics, and benefits from the cooperation with well-known scientists from prestigious universities in China. As of the end of December 31, 2009, 145 products that Xinda manufactured have been certified for use by one or more of the automobile manufacturers in China. For more information please visit 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 ability to increase the number of certifications; the Company's ability to introduce new product applications for automobiles; the effectiveness, profitability, the marketability and distribution of its products; the Company's ability to successfully expand its production capacity; the company's ability to protect its proprietary information; 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 companies 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, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
For more information, please contact:
China XD Plastics Company Ltd.
Mr. Taylor Zhang, Chief Financial Officer
Phone: +1-212-747-1118 (New York)
Mr. Allan Lao, IR Director
Phone: +86-451-84346600 (China)
Email: cxdc@chinaxd.net
Web: http://www.chinaxd.net
CCG Investor Relations
Mr. Crocker Coulson, President
Phone: +1-646-213-1915 (New York)
Mr. Ed Job, CFA
Phone: +1-646-213-1914 (New York)
Email: ed.job@ccgir.com
Web: http://www.ccgirasia.com
