China XD Plastics Company Limited (“Company” or “China XD”), (OTC Bulletin Board:CXDC), through its wholly owned subsidiary Harbin Xinda Macromolecule Material Company Limited (hereinafter called “Xinda”) is engaged in the development,manufacturing and distribution of modified plastics, primarily for use in automotive applications. Xinda was founded in 2004 and is located in Harbin, Heilongjiang Province, in Northeast China.
China XD currently has 296 full-time employees. At the end of 2008 Xinda had annual production capacity of 40,000 tons of modified plastics that is planned to increase to 100,000 by 2010.It is currently the largest producer of modified plastics for automotive applications in China.
Over 90% of China XD Plastics products are modified plastics for automotive applications in exterior and interior trims, and other functional components of more than 30 different models of vehicles, such as Audi, Red Flag, volkswagen and Mazda6. As a result, the Company is well-known for being a major supplier to major Chinese automakers,including China FAW Group Corporation, HF Automobile Group and Brilliance Auto. The Company is also a supplier of modified plastics to large oil fields, mining machinery,
vessel propulsion, and power stations.
The products of China XD Plastics are listed as the National Torch Project, National Key New Product Project and National Spark Program Project. China XD Plastics is a member of Chinese Modified Plastics Professional Committee, a member of Chinese Engineering Plastics Association and Enterprise with Highest Growth Potentials recognized by China Engineering Plastics Industry Association.
Most automotive manufacturing companies are located in five regions, that is, northeastern, eastern, northern, southern and southwestern regions of China. China XD’s sales network covers the northeastern and eastern regions of China. China XD has a sales team of 18 persons, everyone with over three years of marketing experience. In 2007, over 90% of the Company’s sales were generated from the northeastern market including Heilongjiang, Jilin and Liaoning Provinces and continue expanding into and penetrating the northern and eastern regions of China.