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China XD Plastics to Add High-End Modified Nylon Products

August 31, 2009

HARBIN, China, Aug. 31 /PRNewswire-Asia-FirstCall/ — China XD Plastics
Company Ltd. (“China XD Plastics” or the “Company”),
(OTC Bulletin Board: CXDC), the largest Chinese manufacturer in the
development, manufacture, and distribution of modified plastics primarily for
use in automotive applications in China, today announced that the Company’s
wholly owned subsidiary, Harbin Xinda Macromolecule Material Company Limited
(“Xinda”), entered into a long-term non-exclusive agreement with Changchun
Wanbofeng Plastics Company Limited (“Wanbofeng”) to distribute carbon fiber
reinforced nylon composite (“CFRNC”), a product newly developed by the Company.

The Company has successfully developed CFRNC, an advanced new product over
the traditional modified nylon. Compared to traditional modified nylon, its
CFRNC exhibits higher performance while replacing imported products with over
30% savings to its customers. CFRNC is mainly used in auto parts and
components of mid-class and luxury vehicles. The Company expects its CFRNC to
displace similar imported materials with competitive pricing over imports and
offer a higher level of service and product customization to its customers.
The new product has been certified by the FAW Group Corporation, the largest
automobile manufacturer and pioneer of the automobile industry in China,
allowing its parts suppliers to use the Company’s CFRNC in their production.
In addition, the carbon fiber-reinforced nylon can be used in non-automobile
applications, including oil fields and mining machinery, aviation and among
other industries.

“High-end and high margin modified nylon products have been one of our key
R&D initiatives for many years. The successful development of carbon
fiber-reinforced nylon showcases China XD Plastics’ ability in product
innovation. We are also delighted to see our new product development beginning
to bear fruit and being recognized by a specialty nylon product distributor in
Northeast China, Changchun Wanbofeng Plastics Company Limited, only three
months after we added a new distributor in North China,” said Mr. Jie Han, the
Chairman and CEO of China XD Plastics. “Through Wanbofeng’s sales network, we
will be able to accelerate sales volume of high margin nylon products in
Northeast China, thus enhancing our overall gross margin.”

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 dedicates to the researching and development
of modified plastics and benefits from the cooperation with well-known
scientist in Chinese famous college. Currently, 129 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 raise additional capital to finance the company’s
activities; the effectiveness, profitability, and the marketability of its
products; legal and regulatory risks associated with the share exchange; the
Company’s ability to successfully expand its production capacity; the future
trading of the common stock of the company; the Company’s ability to operate
as a public company; 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; 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, CFO
     Phone: +1-212-747-1118 (New York)
     Mr. Allan Lao, IR Director
     Phone: +86-451-8434-6600 (China)
     Email: cxdc@chinaxd.net

    CCG Investor Relations Inc.
     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

SOURCE China XD Plastics Company Ltd.


Source: newswire



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