HARBIN, China, Oct. 3, 2019 /PRNewswire/ -- China XD Plastics
Company Limited (NASDAQ: CXDC) ("China XD Plastics" or the
"Company"), one of China's leading
specialty chemical companies engaged in the development,
manufacture and sale of polymer composite materials primarily for
automotive applications, today announced that Xinda Holding (HK)
Company Limited ("Xinda Holding"), a subsidiary of the Company, has
entered into a US$135,000,000
Facility Agreement (the "Facility Agreement"), dated October 2, 2019, with a Banks Consortium (the
"Consortium") led by the Industrial and Industrial and Commercial
Bank of China (Macau) Limited ("ICBC") as mandated lead
arranger and the lending syndicate includes Industrial and
Commercial Bank of China
(Macau) Limited, Standard
Chartered Bank (Hong Kong)
Limited, China CITIC Bank International Limited, Ping An Bank
Company Ltd. China (Shanghai) Pilot Free Trade Zone Branch, Bank
of Shanghai (Hong Kong) Limited, Nanyang Commercial Bank,
Limited, Shanghai Rural Commercial Bank Zhangjiang Hi-Tech Sub
Branch, China Minsheng Banking Corp., Ltd., Hong Kong Branch, and Tai Fung Bank
Limited.
According to the terms of the Facility Agreement, the Consortium
will provide Xinda Holding up to US$135
million. The Facility carries an interest rate at 2% per
annum over LIBOR payable every three months. The 364-day term loan
facility will primarily be used to refinance certain of Xinda
Holding's outstanding debt as well as to pay fees, costs and
expenses relating to the refinancing.
"Working with a consortium led by ICBC, the world largest
commercial bank by assets, speaks volume of the confidence that
world leading financial institutions have in our business and
brand," commented Mr. Jie Han,
Chairman and Chief Executive Officer of China XD Plastics. "This
financing will provide additional liquidity and financial stability
to our company. We look forward to broader long-term cooperation
with ICBC and other banks of the Consortium. In the past few years,
ICBC has been leveraging its global service network to actively
provide comprehensive financial support for Chinese companies going
global and China's "One Belt and One Road" initiative. ICBC's
overseas network has been extended to 42 countries and territories
over the world, ranking the first among all Chinese-funded
financial institutions in terms of global network coverage."
About China XD Plastics Company Limited
China XD Plastics Company Limited, through its wholly-owned
subsidiaries, develops, manufactures and sells polymer composites
materials, primarily for automotive applications. The Company's
products are used in the exterior and interior trim and in the
functional components of 31 automobile brands manufactured in
China, including without
limitation, Audi, Mercedes Benz,
BMW, Toyota, Buick, Chevrolet, Mazda, Volvo, Ford, Citroen, Jinbei
and VW Passat, Golf, Jetta, etc. The Company's wholly-owned
research center is dedicated to the research and development of
polymer composites materials and benefits from its cooperation with
well-known scientists from prestigious universities in China. As of June 30,
2019, 560 of the Company's products have been certified for
use by one or more of the automobile manufacturers in China. For more information, please visit the
Company's English website at http://chinaxd.irpass.com/, and the
Chinese website at http://www.xdholding.com.
About ICBC
Industrial and Commercial Bank of China was established on 1 January 1984. For the fourth consecutive year
in 2016, the Bank ranked 1st place in the three authoritative lists
of The Banker's Top 1000 World Banks, the Forbes Global 2000 and
the Fortune Global 500 Sub-list of Commercial Banks. On
28 October 2005, the Bank was wholly
restructured to a joint-stock limited company. On 27 October 2006, the Bank was successfully listed
on both Shanghai Stock Exchange and Stock Exchange of Hong Kong
Limited. Through continuous endeavor and stable development, the
Bank has developed into one of the top large listed banks in the
world, possessing an excellent customer base, a diversified
business structure, strong innovation capabilities and market
competitiveness and providing comprehensive financial products and
services to 5,784 thousand corporate customers and 530 million
personal customers. With serving the real economy as the foothold
of operation and management, the Bank has adhered to new ideas, new
finance and new services to support the supply-side structural
reform and economic transformation and upgrading and to achieve its
own healthy and sustainable development. The Bank has further
promoted reform and innovation as well as business transformation
and developed retail finance, asset management, financial market
and other businesses into important engines of profit growth. The
pattern of internationalized and diversified operation was further
improved, covering 42 countries and territories, and contributed
more to the Bank's profit-making.
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 growth
potential in international markets; the effectiveness and
profitability of the Company's product diversification strategy;
the impact of the Company's product mix shift to more advanced
products and related pricing policies; the effectiveness,
profitability, and the marketability of its the ongoing mix shift
to more advanced products; the prospect of the Company's
Dubai facility, and the associated
expansion into Middle East,
Europe and other parts of
Asia; the prospect of the
Company's Southwest China
facility, the prospects of the Company's Harbin facility, and its penetration into
Northeast China; and its
penetration into Southwest China;
the Company's projections of its revenues for performance in fiscal
2019. These forward-looking statements can be
identified by terminology such as "will," "expect," "project,"
"anticipate," "forecast," "plan," "believe," "estimate" and similar
statements. Forward-looking statements involve inherent risks and
uncertainties and are based on current expectations, assumptions,
estimates and projections about the Company and the industry. A
number of important factors could cause actual results to differ
materially from those contained in any forward-looking statement.
Potential risks and uncertainties include, but are not limited to,
the global economic uncertainty could further impair the automotive
industry and limit demand for our products; fluctuations in
automotive sales and production could have a material adverse
effect on our results of operations and liquidity; our financial
performance may be affected by the prospect of our Dubai facility and the associated expansion
into Middle East, Europe and other parts of Asia; the withdrawal of preferential
government policies and the tightening control over the Chinese
automotive industry and automobile purchase restrictions imposed in
certain major cities may limit market demand for our products; the
slowing of Chinese automotive industry's growth; the concentration
of our distributors, customers and suppliers; 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. 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, it
cannot assure you that its expectations will turn out to be
correct, and investors are cautioned that actual results may differ
materially from the anticipated results.
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SOURCE China XD Plastics Company Limited