China XD Plastics : Delisting/Transfer of Listing (Form 8-K)

Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing

On June 24, 2021, China XD Plastic Company Limited (the 'Company') received a letter (the 'Nasdaq Letter') from the Listing Qualifications Department of the Nasdaq Stock Market ('Nasdaq') notifying the Company that it was no longer in compliance with the minimum bid price requirement as set forth in Nasdaq Listing Rule 5450(a)(1) (the 'Minimum Bid Price Requirement').

Nasdaq Listing Rule 5450(a)(1) requires listed securities to maintain a minimum bid price of $1.00 per share, and Nasdaq Listing Rule 5810(c)(3)(A) provides that a failure to meet the Minimum Bid Price Requirement exists if the deficiency continues for a period of 30 consecutive business days. Based on the closing bid price of the Company's common stock for the 30 consecutive business days prior to the date of the Nasdaq Letter, the Company no longer meets the Minimum Bid Price Requirement. The Nasdaq Letter has no immediate effect on the listing or trading of the Company's common stock on the Nasdaq Global Market and, at this time, the common stock will continue to trade on the Nasdaq Global Market under the symbol 'CXDC.'

The Nasdaq Letter provides that the Company has 180 calendar days, or until December 21, 2021 (the 'Compliance Period'), to regain compliance with Nasdaq Listing Rule 5450(a)(1). To regain compliance, the Company's common stock must have a closing bid price of at least $1.00 per share for a minimum of 10 consecutive business days. If the Company does not regain compliance with the Minimum Bid Price Requirement by the end of the Compliance Period, then under Nasdaq Listing Rule 5810(c)(3)(A)(i), the Company may transfer to The Nasdaq Capital Market, provided that it meets the applicable market value of publicly held shares requirement for continued listing as well as all other standards for initial listing of its common stock on the Nasdaq Capital Market (other than the Minimum Bid Price Requirement) and notifies Nasdaq of its intention to cure the deficiency during a second compliance period (by effecting a reverse stock split if necessary). Following a transfer to The Nasdaq Capital Market, under Nasdaq Listing Rule 5810(c)(3)(A)(ii), the Company may be afforded an additional 180-days to regain compliance with the Minimum Bid Price Requirement.

If the Company does not regain compliance with the Minimum Bid Price Requirement by the end of the Compliance Period (or the Compliance Period as may be extended) the Company's common stock will be subject to delisting.

The Company intends to monitor the closing bid price of its common stock and may, if appropriate, consider implementing available options, including, but not limited to, implementing a reverse share split of its outstanding common stock, to regain compliance with the Minimum Bid Price Requirement under the Nasdaq Listing Rules.