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Safe Harbor Statement

This presentation may contain forward-looking statements and management may make additional
forward-looking statements in response to your questions. Such written and oral disclosures are
made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995.

All statements other than statements of historical fact in this presentation are forward-looking
statements, including but not limited to, the Company¶s ability to raise additional capital to finance
the Company¶s activities; the effectiveness, profitability, and the marketability of its products; the
period of time for which its current liquidity will enable the Company to fund its operations; the
Company¶s ability to protect its proprietary information; the Company¶s ability to secure raw
material supplies to support its production plans; the Company¶s ability to operate its plants
efficiently; general economic and business conditions; the volatility of the Company¶s operating
results and financial condition; the Company¶s ability to execute is expansion plans; 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. Although we believe our expectations expressed in such forward looking
statements are reasonable, we cannot assure you that they will be realized. Investors are
cautioned that such forward-looking statements involve risks and uncertainties that could cause
actual results to differ materially from the anticipated results, and therefore we refer you to a
more detailed discussion of the risks and uncertainties in the Company¶s filings with the Securities
& Exchange Commission.

The forward-looking statements contained in this presentation are made only of this date, and
China XD Plastics is under no obligation to revise or update these forward-looking statements.

O
R o Re Are

v vina
ina XD
XD
Valuevreator
Value oft t eeSupply
vreatorof Supplyvv ain
ain

Develops, manufactures, and


distributes modified plastics, primarily
Oil Refineries for the use in the exterior and interior
trim and in the functional components
of more than 30 automobile models.

Plastic Resin
Suppliers

Modified Plastics
Manufacturers

Auto Makers

Plastic Auto Parts


Manufacturers

¬
vorporate Overview

 6ey Facts
þargest v inese Manufacturer of Headquartered in Harbin, China
Modified Plastics for automobile Total usable area of 336,400 square feet
applications in v ina Annual Production Capacity of 100,000 tons with
31 operating production lines
396 full time employees

 Products
Ôodified Polypropylene, modified ABS, modified
Nylon, alloy plastic, engineering plastics and
environment friendly plastics, 145* of which are
certified by auto makers

 Applications and vustomers


Ôainly used in automotive exterior and interior
trim and functional components, as well as
industrial plastic parts and components used in
large-scale oil fields, mining machinery, vessel
propulsion system, high-speed trains, aerospace
etc.
End users include China FAW, the largest auto
maker in China, Brilliance Auto, Hafei Auto,
Shanghai Volkswagen , Shanghai GM and among other
car manufacturers in China.

 as of December 31, 2009


]
Products and Applications

  

Over 90% of Products
 




are Modified Plastics  

for Automobiles
6 Ôodified Polypropylene
6 Ôodified ABS
6 Ôodified Nylon
6 Plastics Alloy
6 Environment-friendly plastics
6 Engineering Plastics
Interior parts and components
ÚSuch as Instrument board, glove
box, etc.)

 terior parts and components Function components ÚSuch as air


ÚSuch as door mirror, front and rear conditioner¶s shell, engine cover , etc.)
bumpers, etc.)

K
Sample of nd-
nd-Users

§
vapital Market Summary

  
   
  
  

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 #   $ %  &'' ]K]
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* Excluding $3.2 million non-cash stock compensation expense

**Diluted Shares Outstanding (As of December 31, 2009); EPS and PE (TTM ended September 30, 2009)

w
6ey Milestones
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Market Opportunity
Automobiles

 
+

 
 million& v ina Automobile Sold (in million)

÷




 2
  2
78 2
 2
2
 2 87 79
2

2 2
2 2 67
2
 2 2
 7 : 7 : 67 :
 2 2
2 2 2
 2 
22 2
2 2 2
22 22 22 22 22 22 22 22

6ey Drivers:

6 Rising income and growing affluence of middle class in China


6 Growing Consumption of automobiles in China
6 Economic Policy stimulating the consumption of automobiles in China

Source: National Bureau of Statistics of China

.
Market Opportunity
Automotive Modified Plastics

v ina Automotive Plastics Demand Domestic vs. Imports

  
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Source: National Bureau of Statistics of China, ³Chinese markets for Automotive Plastics´ from
Research and Ôarkets, and China XD¶s estimate

Favorable Government
Policies

Policies 2009 2010


Reduction of sales ta Sales tax reduced from 10% to 5% on Purchase tax adjusted to
on smaller passenger cars with engines <=1.6L 7.5% on cars with engines
cars <=1.6L
Subsidies for upgrading Subsidies range from RÔB 3,000 - 6,000 Subsidies were increased
commercial ve icles per old trucks, buses and highly polluting to RÔB 5,000 - 18,000 per
vehicles vehicle that are disposed / old vehicle.
replaced
"vars and motorcycles 6 Mini and þig t trucks (<=6 tonnes) Extended in 2010
go to villages" - Subsidies - 10% of purchase price up to RÔB
for farmers to purchase 5,000 per vehicle
certain automobiles and - RÔB 2,000-3,000 for disposing 3-
motorcycles wheeled cars and low-speed trucks
6 Mini-passenger cars (<=1.3þ) Extended in 2010
10% of purchase price up to RÔB 5,000
6 Subsidies to buy motorcycles Extended in 2010
13% of purchase price up to RÔB 650


vompetitive Advantages

Strong vompetitive Position

6Customized
products 6 Geograp ic Advantage
¦ Adjacent to China¶s largest automobile
center
¦ The northern region of the PRC is a
relatively low cost resource center
¦ University-educated local workforce
available
6High 6Large
barrier Attractive customer 6 Strong Government Support

to entry ROI base ¦ Extended tax benefits: 15% tax rate


through 2011
¦ Superior credit profile at local banks over
years

6 þeading National R&D venter


¦ Proprietary formulas developed by our
own research create a high barrier of
6Lower cost entry

production 6  cellent vustomized Service


¦ Long history of excellent customized
service to auto OEÔs in China

O
Manufacturing Process

Measuring Plasticizing and vooling and Homogenizing


and Blending  trusion vutting and Packing

State of t e Art Manufacturing Facilities


!ec nology Innovation

 
%
  = )
      
%Plastics
 Wu, Zhongwen: Chief Scientist, Jilin University.
 Zheng, Kai: Secretary General, China's Plastics Engineering Industry Association.
 Li, Bin: Eastern Forest Industry University.
 Xing, Yuqing: Harbin Industrial University
 ZhangëHuixuan:Changchun Technology University
 Jiang, Zhenhua: Jilin University

!alents at ! e Researc Institution

 77 researchers with average working experiences over ten years in modified plastics
research and development
 90% with PhD. Ôaster or bachelor degrees in macromolecule field

* *  0
 0 $
% ( *
$
% ( *   
  

 The most advanced auto-specific polymer research institution


in China,
 Nearly 80 sets of state of the art equipments in macromolecule
industry.

]
Strategic þocation

1 $

vurrently, t e 4
company is focusing
mainly on coverage of t e  $
Nort east v ina
  $

5> $
By 2013, t e
) > $
company plans to cover
Nort v ina markets and
to become one of t e  $

major suppliers in t is
region  > $

 $

$1 $ @
By 2015, t e
company plans to cover  $ ?> $

ast v ina markets and to


become one of t e major ,"

suppliers in t is region
 $"


 "

m Represents t e main targeted market in Nort east v ina


m Represents t e main targeted market in Nort v ina
m Represents t e main targeted market in ast v ina

K
Focused Growt Strategy

Geograp ic  pansion !argeting Major Strategic Rationale


Automotive Manufacturing Regions

! e Nort east base to ac ieve sales output 1 $  Achieve economy of scale
of 100,000 tones by Q2 2010
4
 / 

 Sustain investment in research
 $
! e Nort v ina base to ac ieve sales output   $
and development to ensure the
of 100,000 tons by 2011, toget er adding t e 5> $ leading edge technology and
total production up to 200,000 tons.
O / 

) > $ develop more number of high
 $

value-added products
! e ast v ina base to ac ieve sales
output of 100,000 tons by 2013, wit t e
total production up to 300,000 tons.  > $  Increase market share through
¬ / 

$1 $ @
 $ geographic expansion of sales
 $ ?> $ network and selected
,"
 acquisition
 $"


 "


Financial Hig lig ts

 * 
+!
&
(  !
& 

% !
&


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  w
 !¬
w 

 .

 
 
   

O  O  O    O  O  O    O  O  O   


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* Net income for 9Mon 2009 is adjusted by excluding non-cash stock compensation of $3,191,430

w
Financial Hig lig ts
Revenue and Margin Performance

* Operating margins for 2Q2009 and 3Q2009 are adjusted by excluding non-cash stock compensation of
$434,093 and $2,757,337, respectively


Financial Hig lig ts
! ird Quarter 2009

6 evenue was $36.2 million, 62.1% increase from the Q3 2008


6 Gross profit was $8.4 million, 45.9% increase from the Q3 2008
6 Gross profit margin was 23.3%, compared to 25.8% in the Q3 2008
6 DA was $7.6 million, 57.1% increase from the Q3 2008
6 et income was $4.0 million, while non-GAAP net income excluding the non-cash charges of $2.7 was $6.7
million, 58.2% increase from the Q3 2008
6 Diluted earnings per share was $0.10 and non-GAAP diluted earnings per share was $0.17, up from diluted
earnings per share of $0.13 for the Q2 2009

 in millions ! ird Quarter ended YoY First 9 Mont s ended YoY


v anges v anges
2009 2008 2009 2008
Revenue 36.2 22.3 62.1% 94.5 55.8 69.3%
Gross Ôargin 23.3% 25.8% 22.1% 24.9%
Op Income ÚLoss) 4.3 4.7 -7.7% 14.0 12.0 16.3%
Depreciation & Amortization 0.6 0.3 100.8% 1.5 0.7 112.6%
EBITDA 7.6 4.9 57.1% 18.7 12.6 47.9%
Net Income ÚLoss) 4.0 4.2 -6.8% 13.0 11.4 13.4%

.
Financial Hig lig ts
Financial Ratios

Significant Ratios 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3


Selling Expenses 0.1% 0.9% 0.4% 0.2% 0.2% 0.3%

G&A Expenses 0.9% 2.9% 3.2% 4.0% 3.5% 10.0%

R&D Expenses 1.09% 1.1% 1.1% 1.1% 0.7% 1.0%

Current Ratio 1.1 1.2 1.1 1.3 1.4 1.9

Inventory Turnover 2.3 1.7 2.1 1.5 1.7 1.8

Days Sales
70.0 67.0 50.6 20.0 27.4 29.8
Outstanding
Return on Assets 9.9% 7.1% 3.5% 6.9% 7.7% 6.3%

Return on Equity 29.2% 19.4% 9.3% 14.3% 14.9% 9.8%

O
Financial Hig lig ts
Balance S eet

Sept. 30, Dec. 31,


($ '000 )
2009 2008

vas and cas equivalents 5,065 3,869

Accounts receivable 11,977 11,235

Inventory 15,277 12,439

!otal vurrent Assets 43,282 44,755

Property, plant and equipment, net 19,676 19,333

!otal Assets 63,202 64,714

Accounts payable 627 113

S ort !erm Debt 20,216 20,520

!otal þiabilities 23,026 40,653

!otal S are olders' quity 24,061


40,176

!otal þiabilities and S are olders¶ quity 63,202 64,714

O
Management

Jie Han, v airman and v ief  ecutive Officer  Ôr. Han founded Harbin Xinda Nylon Factory in 1985 and co-
founded Xinda in 2004. With 26 years of industry experience, Ôr. Han is an expert in the modified plastic industry. He
currently serves as executive director of China Plastic Processing Industry Association, as an outstanding entrepreneur
at the industry of modified plastics, and as director of the Heilongjiang Industry Commerce Association. In addition, Ôr.
Han serves as a deputy to the Harbin Ôunicipal People¶s Congress.

!aylor Z ang - v ief Financial Officer  Ôr. Zhang is a native of Harbin and has over seven years of experience in
finance and operation in a broad range of industries. Prior joining China XD, Ôr. Zhang served as CFO of Advanced
Battery Technologies, Inc ÚNasdaq: ABAT). From 2007 to 2008, he served as Executive Vice President of Finance in
China Natural Gas ÚNasdaq: CHNG). From 2005 to 2007, Ôr. Zhang worked as a research analyst in New York Private
Equity . He holds a ÔBA from University of Florida.

Qingwei Ma, v ief Operating Officer  Appointed as Chief Operating Officer in 2008, Ôr. Ôa had been serving the
company and was General Ôanager of Xinda Ôacromolecule from 2004 to 2008, during which Ôr. Ôa led the
successful establishment of sales network, building a comprehensive system ensuring effective and efficient purchase,
production, marketing and other functions. Prior to joining Xinda, Ôr. Ôa worked for Harbin Xinda Nylon Factory, the
Company¶s predecessor, for 6 years. Ôr. Ôa has 13 years of experience in the modified plastics industry.

Junjie Ma, v ief !ec nology Officer  Ôr. Ôa has over 13 years of experience in the modified plastic industry. He
successfully established the research institute and helped the Company to gain more than 100 certifications from
Chinese auto makers, the largest number of certifications among Chinese companies. He has organized and formed a
top class science advisory team and maintains close collaboration relationship with Chinese macromolecule well-known
science R&D institutes and universities. As a result, Ôr. Ôa is effectively taking full advantage of state-of-the-art R&D
devices and top technique talents to keep the institute¶s leading position in China.

OO
Independent Directors

þawrence R. þeig ton ± v airman of Audit vommittee


Ôr. Leighton has had an extensive 40 year international investment banking career. Ôr. Leighton received his BSE
degree in engineering from Princeton University and an ÔBA degree from Harvard Business School. His previous
positions includes Co-Head of the Corporate Finance Department at Clark, Dodge & Co. , Limited Partner of Bear
Stearns, Ôanaging Director of JPÔorgan Chase Bank and CEO of the U.S. investment bank of Credit Agricole, the
major French Bank.

vosimo J. Patti  v airman of vompensation vommittee


Ôr. Patti¶s previous positions include roles as Senior Director of Strategy Ôanagement, Director of Business Strategy,
and Senior Vice President of Lehman Brothers. He is an Arbitrator of SEC and National Association of Securities. Ôr.
Patti has been an Independent Director of NYSE and Nasdaq listed companies.

þinyuan Z ai ± v airman of Nomination vommittee


Ôr. Zhai worked for China FAW Group Corporation for 37 years with abundant experience in terms of technology,
production, and business management. He is a Senior Expert in the auto industry. Ôr. Zhai served as general
manager of automobile manufacturing , successfully led Four Ring Company, a subsidiary of FAW group, to go
public in China. He is one of the pioneers and outstanding contributors of FAW group¶s success.

Yong Jin - Independent Director


Jin, a professor at Tsinghua University and academician of the Chinese Academy of Engineering, is an executive
member of Chemical Industry and Engineering Society of China and Chinese society of particuology, vice chairman
of China Institute of Ecological Economy, director of Industrial Ecology Economy and Technology Committee, Council
Convenor of the Chemical discipline in the State Council Academic Degrees Committee, professional advisers for
Beijing Ôunicipal Government, Lectureship Award recipient in fluidization by American Institute of Chemical
Engineers ÚAIChE), the world's leading organization for chemical engineering professionals, with more than 40,000
members from 93 countries, consultant for the Germany magazine " Chemical engineering & technology ". Jin has
published and presented more than 350 papers in important journals and conferences domestically and
internationally, 138 of which were included in Science. Jin also has more than 30 patent applications.


Investment Hig lig ts

1 !remendous Market Demand


± Driven by Large and High Growth Addressable Automobile Ôarket in China

2 Hig Barriers to ntry


± Due to Strict Certification Requirements by Automotive Ôanufacturers

3 Industry þeading R&D venter


± State of the Art Equipment and Experienced Research Team

4 þargest Number of vertification


± Largest Product Portfolio Certified by Leading Auto Ôakers in China

5 Proven Operating Model


±$    
 #)   

6 Seasoned Management !eam


± With Extensive Professional Knowledge and Years of Experience of Serving Auto OEÔs

7 Rell Defined Growt Strategy


± Balanced Organic Growth and Expansion through Acquisition

O]
vontact Information

v ina XD Plastics vompany þtd. Investor Relations Firm:


Ôr. Taylor Zhang, CFO CCG Investor Relations Inc.
Phone: +1-212-747-1118 ÚNew York) Ôr. Crocker Coulson, President
Ôr. Allan Lao, IR Director +1-646-213-1915
Phone: +86-451-84346600 ÚChina) crocker.coulson@ccgir.com
Email: cxdc@chinaxd.net Ôr. Ed Job, CFA
Website: www.chinaxd.net Phone: +1-646-213-1914 ÚNew York)
ed.job@ccgir.com

Sv Attorney Auditors


he Crone Law Group Ôoore Stephens Hong Kong
101 Ôontgomery Street, Suite 1950 905 Silvercord Tower 2, 30 Canton Road,
San Francisco, CA94104 Tsimshatsui, Kowloon, Hong Kong.
Phone: Ú415)955-8900 Tel: +852-2375-3180,
Fax: Ú415)955-8910 Fax: +852-2375-3828
Email: mcrone@cronerozynko.com web: www.ms.com.hk
A member firm of Ôoore Stephens
International Limited

OK
Appendi : Non
Non--GAAP
Reconciliation

Three Months Ended September 30, 2009


Ú  
  
Adjusted Net Income - Non GAAP $6.7 $0.17 $0.17
Ú     
 !"!  !"! 
Ú   #$$ %"! !"! !"!

Nine Months Ended September 30, 2009


Ú  
  
Adjusted Net Income - Non GAAP $16.2 $0.68 $0.41
Ú     
&" !"% !"!'
Ú   #$$ &"! !"(% !"&&

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