Chairman’s Message

Since China’s economic reform in 1978, Chinese automobile industry has been growing at an alarming rate, driven by the rapid growth of its economy and rising income and higher consumption. Chinese annual automobile sales topped 13 million units in 2009 from less than 5,000 in 1978, making China the third country with annual production and sales over 10 million units. As the largest manufacturer of modified plastics for automotive applications, China XD Plastics will continue being benefited from the healthy growth of the auto market in China.

Led by over 80 researchers with Ph.D and other post-graduate degrees, our world-class research and development center, Xinda Research and Development Center, is a vital asset to build our leading position in the modified plastics industry both in China and abroad. Our Company’s Science Advisory Board includes top scientists of the industry who convene every year to set and review our R&D initiatives in support of the rapid growth of our business. Xinda Research and Development Center is equipped with more than 80 sets of state-of-art macromolecule materials R&D and quality assurance devices. Thanks to years of ceaseless efforts of our engineers in the center, the Institute has 19 filed patents accepted by the State Intellectual Property Office of the P.R.C. and over 170 product certifications approved by major automobile manufacturers.

Our annual production capacity already reached 100,00 tons in 2010 ahead of our schedule. In next 5 years, we will still focus on automotive modified plastics while increasing the portion of high-value-added products, such as, modified nylon, engineering plastics, plastic alloy and environment friendly plastics. On the other hand, we also plan to expand our distribution coverage from north east China to north China and east China, and gradually increase export to Russia, USA, Europe, Japan, Korea, etc.

We take pride of our ability to expand our product offering and to increase the market share, by leveraging our cutting-edge technology, capitalizing the intellectual property of our R&D center, and the most importantly factor: our hardworking people.

  China XD can effectively replace import products. Driven by the increasing number of mid-class in China and rising disposable income, Chinese auto industry has grown at an alarming rate of 25% annually during the past 5 years. Also helped by the global initiative of low carbon economy and Chinese government’s determination to foster green vehicle industry, the demands of automotive plastics is expected to continue its strong growth into the future and expected to reach 3 million metric tons in 2013.  We remain confident about the growth prospect of auto market in China and look forward to deliver lasting value to our shareholders in the quarters and years ahead.

Sincerely,

Jie Han

Chairman and CEO