CHINA XD PLASTIC COMPANY LIMITED RECEIVES NASDAQ NOTIFICATION OF NON-COMPLIANCE WITH LISTING RULE 5250(c)(1)

Rhea-AI Summary

China XD Plastics Company Limited (Nasdaq: CXDC) announced it received a letter from Nasdaq regarding non-compliance with Listing Rule 5250(c)(1). The Company failed to file its Quarterly Report on Form 10-Q for Q2 2021 and its Annual Report on Form 10-K for 2020. Although this letter does not impact the stock's trading status immediately, the Company must submit a written update on its audit work. If accepted, it could have up to 180 days to regain compliance.

Positive

• The letter from Nasdaq does not immediately affect the listing or trading of CXDC stock.
• If the plan to regain compliance is accepted, the Company has up to 180 days to meet filing requirements.

Negative

• Failure to file important reports raises concerns about financial transparency.
• Potential risk of delisting if compliance is not met within the given timeframe.

Harbin, China, Aug. 31, 2021 (GLOBE NEWSWIRE) -- China XD Plastic Company Limited (Nasdaq: CXDC, the “Company”) today announced that as expected, it received a letter (the “Letter”) from the Listing Qualifications Department of the Nasdaq Stock Market (“Nasdaq”) notifying the Company that it was not in compliance with requirements of Nasdaq Listing Rule 5250(c)(1) as a result of not having timely filed its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021 (the “Form 10-Q”) and because the Company has not yet filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2020 (the “Form 10-K”).

The Letter has no immediate effect on the listing or trading of the Company’s common stock on the Nasdaq Global Market. The Letter states that the Company is required to submit a written update of the audit work and audit procedures. If the plan is accepted by Nasdaq, then Nasdaq can grant the Company up to 180 calendar days from the due date of the Form 10-K to regain compliance.

About China XD Plastics Company Limited

China XD Plastics Company Limited, through its wholly-owned subsidiaries, develops, manufactures, and sells polymer composites materials, primarily for automotive applications. The Company’s products are used in the exterior and interior trim and in the functional components of 31 automobile brands manufactured in China, including without limitation, Audi, Mercedes Benz, BMW, Toyota, Buick, Chevrolet, Mazda, Volvo, Ford, Citroen, Jinbei, VW Passat, Golf, and Jetta. The Company’s wholly-owned research center is dedicated to the research and development of polymer composites materials and benefits from its cooperation with well-known scientists from prestigious universities in China. As of March 31, 2021, 688 of the Company’s products have been certified for use by one or more of the automobile manufacturers in China. For more information, please visit the Company’s English website at http://chinaxd.irpass.com/, and the Chinese website at http://www.xdholding.com.

Contacts:
China XD Plastics Co., Ltd.

Mr. Taylor Zhang, CFO

Phone: +1 (212) 747-1118
Email: cxdc@chinaxd.net

FAQ

What did China XD Plastics announce on August 31, 2021?

On August 31, 2021, China XD Plastics announced it received a letter from Nasdaq regarding non-compliance with Listing Rule 5250(c)(1) due to unsatisfied filing requirements.

What reports is China XD Plastics missing?

China XD Plastics has not timely filed its Quarterly Report on Form 10-Q for Q2 2021 and its Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

What are the implications of the Nasdaq letter for CXDC shareholders?

The Nasdaq letter indicates potential risks related to financial transparency and compliance that could affect shareholder confidence and stock performance.

How long does China XD Plastics have to regain compliance with Nasdaq?

If the plan to regain compliance is accepted, China XD Plastics could have up to 180 days from the due date of the Form 10-K.