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) due to the late filing of its Quarterly Report on Form 10-Q for Q1 2021 and the Annual Report on Form 10-K for 2020. The letter does not impact the current trading of CXDC shares, but the company must submit a compliance plan by June 15, 2021, with a potential 180-day extension to regain compliance if accepted by Nasdaq.

Positive

• The letter from Nasdaq does not immediately affect the trading of CXDC shares.
• The company can potentially regain compliance by submitting an acceptable plan by June 15, 2021.

Negative

• Failure to file timely reports raises concerns about corporate governance and transparency.
• Possible future trading restrictions if compliance is not achieved.

Harbin, China, May 27, 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 March 31, 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 plan to regain compliance with Rule 5250(c)(1) by June 15, 2021. 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

Why did China XD Plastics receive a letter from Nasdaq?

China XD Plastics received a letter for not complying with Nasdaq Listing Rule 5250(c)(1) due to untimely filing of its Quarterly and Annual Reports.

What actions must China XD Plastics take after receiving the Nasdaq letter?

The company is required to submit a plan to regain compliance with Nasdaq by June 15, 2021.

What is the potential impact on CXDC stock after the Nasdaq letter?

The letter does not have an immediate effect on CXDC stock trading, but failure to regain compliance could lead to trading restrictions.

What are Form 10-Q and Form 10-K?

Form 10-Q is a quarterly report, while Form 10-K is an annual report that provides a comprehensive overview of a company's financial performance.