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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.
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R o Re Are
v vina
ina XD
XD
Valuevreator
Value oft t eeSupply
vreatorof Supplyvv ain
ain
Plastic Resin
Suppliers
Modified Plastics
Manufacturers
Auto Makers
¬
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
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.)
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Sample of nd-
nd-Users
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vapital Market Summary
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**Diluted Shares Outstanding (As of December 31, 2009); EPS and PE (TTM ended September 30, 2009)
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6ey Milestones
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million& v ina Automobile Sold (in million)
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2
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78 2
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2 87 79
2
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2 2 67
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6ey Drivers:
.
Market Opportunity
Automotive Modified Plastics
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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
vompetitive Advantages
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
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Manufacturing Process
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!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
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 $
% (*
$
% (*
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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 $ ?> $
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Focused Growt Strategy
! 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
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Financial Hig lig ts
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* Net income for 9Mon 2009 is adjusted by excluding non-cash stock compensation of $3,191,430
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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
.
Financial Hig lig ts
Financial Ratios
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%
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Financial Hig lig ts
Balance S eet
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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.
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Independent Directors
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Investment Hig lig ts
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vontact Information
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Appendi : Non
Non--GAAP
Reconciliation
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