Specialty Chemical Company China XD Plastics Receives NASDAQ Notice on Late Filing of its Form 10-K
China XD Plastics Company Limited (NASDAQ: CXDC) announced a compliance issue with NASDAQ due to the late filing of its 2020 10-K report. The due date was March 31, 2021, with an extended date of April 15, 2021. The delay was caused by COVID-19 lockdowns in Heilongjiang province, interrupting the audit process. The company has 60 days to submit a compliance plan, with a potential 180 days extension until October 12, 2021, to rectify the issue. China XD specializes in polymer composites for automotive applications, serving major brands like Audi and BMW.
- China XD has resumed operations since February 25, 2021, potentially expediting the completion of the 2020 10-K.
- The company has a broad client base, supplying materials for 31 automobile brands, indicating strong market demand.
- Non-compliance with NASDAQ filing requirements could lead to delisting if not resolved in time.
- The delay in the audit process raises concerns about the company's operational efficiency.
HARBIN, China, April 22, 2021 (GLOBE NEWSWIRE) -- China XD Plastics Company Limited (NASDAQ: CXDC) (“China XD,” the “Company” or “we”), one of China’s leading specialty chemical companies engaged in the development, manufacture and sale of polymer composite materials primarily for automotive applications, today announced that it has received a Notice from the NASDAQ Stock Market on April 16, 2021 notifying the Company that, because its Form 10-K for the fiscal year ended December 31, 2020 (the "2020 10-K") was not filed with the Securities and Exchange Commission by the required due date of March 31, 2021 and the extended filing date of April 15, 2021, the Company is therefore not in compliance with the periodic filing requirements for continued listing set forth in NASDAQ Listing Rule 5250(c)(1).
The delay of filing the Company’s 2020 10K was primarily due to lockdown ordered by the local government in response to the resurgence of COVID-19 outbreak early this year in Heilongjiang province, where the executive office and group accounting staff is based. As a result, the Company’s audit process has been interrupted. The Company has resumed operation since February 25, 2021 and is working with its auditor to complete necessary process and preparation of the 2020 10-K.
In the Notice, Nasdaq indicated that the Company has 60 calendar days from the date of the Notice to submit a plan to regain compliance with Nasdaq’s continued listing requirements. If such a plan is timely submitted by the Company, the Nasdaq staff may grant the Company up to 180 calendar days from the due date of the Form 10-K, or until October 12, 2021, 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 and VW Passat, Golf, Jetta, etc. 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 December 31, 2020, 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.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company’s growth potential in international markets; the effectiveness and profitability of the Company’s product diversification strategy; the impact of the Company’s product mix shift to more advanced products and related pricing policies; the effectiveness, profitability, and the marketability of the Company’s ongoing mix shift to more advanced products; the prospect of the Company’s facilities in various regions. These forward-looking statements can be identified by terminology such as “will,” “expect,” “project,” “anticipate,” “forecast,” “plan,” “believe,” “estimate” and similar statements. Forward-looking statements involve inherent risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company and the industry. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, the global economic uncertainty, the fluctuation in automotive sales and productions, the development of Company’s expansion plans, the slowdown of China’s automotive industry, the concentration of the Company’s distributors, customers and suppliers, and other risks detailed in the Company’s filings with the Securities and Exchange Commission and available on its website at http://www.sec.gov. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
Contacts:
China XD Plastics Co., Ltd.
Mr. Taylor Zhang, CFO (New York)
Phone: +1 (212) 747-1118
Email: cxdc@chinaxd.net
FAQ
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