China XD Plastics Company Limited reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported revenues of $317,329,520 compared to $313,555,663 a year ago. The year-over-year increase was primarily due to a depreciation of USD against RMB by 7.0%; partially offset by a decrease of 5.0% in the average RMB selling price of products; and a decrease of 0.9% in sales volume, as compared with those of last year. Operating income was $35,953,752 compared to $44,012,361 a year ago. This decrease is primarily due to lower gross profit, higher selling expenses and G&A expenses, partially offset by lower R&D expenses. Income before income taxes was $32,720,306 compared to $32,183,748 a year ago. Net income was $27,224,078 or $0.41 per basic and diluted share compared to $28,063,992 or $0.43 per basic and diluted share a year ago. EBITDA was $55,343,713 compared to $54,721,201 a year ago.

For the six months, the company reported revenues of $627,782,553 compared to $551,395,860 a year ago. Operating income was $74,845,292 compared to $65,360,947 a year ago. Income before income taxes was $58,031,034 compared to $45,637,063 a year ago. Net income was $46,323,979 or $0.70 per basic and diluted share compared to $37,964,981 or $0.58 per basic and diluted share a year ago. Net cash provided by operating activities was $152,600,917 compared to $166,636,423 a year ago. Purchase of and deposits for property, plant and equipment was $334,739,673 compared to $281,550,529 a year ago.

The company reiterates its financial guidance for fiscal 2018 to range between $1.2 and $1.4 billion in revenue. Gross margin in fiscal 2018 is expected to remain stable as compared to that of fiscal 2017. The company project net income to range between $90 and $110 million. This is based on the anticipation of a steady recovery throughout the Chinese automotive supply chain and a stabilization of crude oil pricing and its impact on polymer composite materials in 2018.