China XD Plastics Company Ltd. announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2016. Revenues were $277.1 million in the second quarter ended June 30, 2016, an increase of $11.7 million or 4.4% compared to $265.4 million in the same period of last year. This was due to a 5.4% increase in sales volume and 4.0% increase in the average RMB selling price of products, offset somewhat by a 4.5% negative impact from the exchange rate due to a weakening RMB against the US dollar. Total operating income was $47.4 million in the second quarter ended June 30, 2016 compared to $37.8 million in the same period of 2015, representing an increase of $9.6 million or 25.4%. This increase is primarily due to a higher gross margin and lower research and developed expenses, with stable general and administrative expenses. Net income was $33.3 million in the quarter ended June 30, 2016, compared to $25.5 million for the same period of the prior year, representing an increase of $7.8 million or 30.6%. Basic and diluted earnings per share were $0.51, compared to $0.39 per basic and diluted share in the second quarter of 2015. Earnings before interest, tax, depreciation and amortization (EBITDA) was $56.4 million for the second quarter of 2016, compared to EBITDA of $47.8 million in the same period of 2015, representing an increase of $8.6 million or 18.0%. Income before income taxes was $38.609 million against $29.864 million a year ago.

For the six months, the company reported revenue of $492.169 million against $487.339 million a year ago. Operating income was $72.008 million against $75.370 million a year ago. Income before income taxes was $54.504 million against $59.493 million a year ago. Net income was $44.713 million or $0.68 per basic and diluted share against $50.882 million or $0.77 per basic and diluted share a year ago. Net cash used in operating activities was $93.887 million against net cash provided by operating activities of $71.660 million a year ago. Purchase of and deposits for property, plant and equipment was $40.022 million against $119.535 million a year ago.

The Company reiterates its financial guidance for fiscal 2016 with revenue to range between $1.0 billion and $1.1 billion and net income to range between $100.0 million to $110.0 million. This is based on the anticipation of a steady recovery throughout the Chinese automotive supply chain, the Company's belief in its ability to secure new customers and a stabilization of crude oil pricing and its impact on polymer composite materials in 2016.