China XD Plastics Company Ltd. announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2017. For the quarter, the company reported Revenues were $311.4 million for the third quarter of 2017, compared to $331.8 million for the same period of 2016, representing a decrease of $20.4 million, or 6.1%. The year-over-year decrease was primarily due to an 8.3% decrease in the average RMB selling price of products, attributable to the current quarter's greater percentage of lower-end modified polypropylene sold in China, offset by a 3.0% increase in sales volume. Operating income was $26.2 million for the third quarter of 2017, compared to $53.1 million for the same period of 2016, representing a decrease of $26.9 million, or 50.7%. This decrease was primarily due to lower gross profit, higher G&A expenses and higher R&D expenses. Income before income taxes was $17.200 million against $25.472 million a year ago. Net income was $14.1 million for the third quarter of 2017, compared to $20.2 million for the same period of 2016, representing a decrease of $6.1 million, or 30.2%. Basic and diluted earnings per share were $0.21, compared to $0.31 per basic and diluted share for the same period of 2016. Earnings before interest, tax, depreciation and amortization (EBITDA) was $39.0 million for the third quarter of 2017, compared to $46.1 million for the same period of 2016, representing an decrease of $7.1 million, or 15.4%.

For the nine months, the company reported revenue of $862.814 million against $824.017 million a year ago. Operating income was $91.560 million against $125.077 million a year ago. Income before income taxes was $62.837 million against $79.977 million a year ago. Net income was $52.101 million or $0.79 per basic and diluted share against $64.889 million or $0.98 per basic and diluted share a year ago. Net cash provided by operating activities was $117.785 million against net cash used in operating activities of $145.259 million a year ago. Purchase of and deposits for property, plant and equipment was $338.700 million against $140.826 million a year ago.

The company reiterated its financial guidance for fiscal 2017 with revenue to range between $1.2 billion and $1.3 billion, and net income to range between $85.0 million to $100.0 million. This is based on the anticipation of a continued recovery throughout the Chinese automotive supply chain and a stabilization of crude oil pricing and its impact on polymer composite materials in 2017.