China XD Plastics Company Ltd. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2013. For the quarter, the company reported revenues were $202.2 million, representing an increase of 39.7% from $144.7 million in the second quarter of fiscal 2012. The increase in Revenue was due to approximately 29.8% increase in sales volume and 3.3% increase average RMB selling price of itd products, driven by increasing demand for automotive modified plastics used in the parts of mid- and high-end branded automobiles by the company's major customers. Operating income was $28.5 million, an increase of 0.4% over operating income of $28.4 million in the same period of the prior year. This increase is primarily due to higher gross profit, partially offset by higher G&A and R&D expenses. Net income was $20.8 million compared to $22.8 million for the same period of the prior year. This decrease is primarily due to increase of payroll resulting from an increase in both average salary and headcount and higher interest expenses, partially offset by slight increase in operating income. Diluted earnings per share were $0.32 compared to $0.33 for the same period of the prior year. EBITDA was $36.6 million, an increase of 10.9% from EBITDA of $33.0 million in the same period of the prior year. Income before income taxes was $27,879,927 against $29,647,114 a year ago.

For the six months, the company's revenues were $373,117,929 against $267,839,589 a year ago. Operating income was $49,104,473 against $54,604,873 a year ago. Income before income taxes was $47,330,504 against $56,771,214 a year ago. Net income was $35,257,468 or $0.55 per diluted share against $43,335,135 or $0.65 per diluted share a year ago. Net cash provided by operating activities was $38,925,612 against $29,360,005 a year ago. Purchases of property, plant and equipment was $13,419,444 against $37,490,885 a year ago.

Given the company's positive outlook on customer demand and successful geographic market penetration with the backdrop of on schedule ramp-up of its production capacity during the second quarter of 2013, the company now reiterates its annual guidance and expects revenues for fiscal 2013 to range between $935 million and $1 billion and net income for fiscal 2013 to range between $100 million and $132 million. This forecast excludes any non-cash charges related to deferred income tax benefit, stock based compensation and change in fair value of existing derivative liabilities and is based on constant exchange rates and reflects the company's current and preliminary view, which is subject to change.