HARBIN, China, Jan. 6 /PRNewswire-Asia-FirstCall/ -- China XD Plastics Company Ltd. ("China XD Plastics" or the "Company"), formerly known as NB Telecom, Inc. (OTC Bulletin Board: NBTE), today announced that on December 24, 2008, the Company acquired all of the outstanding capital stock of Favor Sea Limited, a British Virgin Islands corporation, and will change its name to China XD Plastics Company. Favor Sea Limited is a holding company whose only asset, held through a subsidiary, is 100% of the registered capital of Harbin Xinda Macromolecule Material Co., Ltd. ("Xinda"), a limited liability company organized under the laws of the People's Republic of China ("PRC" or "China"). The Company has approximately 39 million shares, and trades on the OTC Bulletin Board under the ticker symbol "NBTE".
In connection with the merger and pursuant to Nevada Revised Statutes Section 78.209, the Company has set December 31, 2008 as the effective record date for a reverse split of 124.1 for 1 to reduce the total number of issued and outstanding shares of common stock. The total authorized shares of common stock will be reduced proportionately accordingly as well. The record holders of the Company's common stock on the date of December 31, 2008 will have their fractional shares or shares numbering below one hundred shares post the reverse split to be rounded up to one hundred shares, with the round-up shares to be deducted from certain designated shareholders by the Company. Any holders of the Company's common stock after the date of December 31, 2008 will not be eligible for the round-up shares.
Xinda, the Company's wholly owned Chinese operating subsidiary, is engaged in the development, manufacturing, and distribution of modified plastic, primarily for the use in automobiles. Xinda produces specialized plastics that are utilized in the exterior and interior trim and in the functional components of more than 30 automobile brands manufactured in China, including Audi, Red Flag, Volkswagen and Mazda. At present, Xinda manufactures approximately 145 types of automobile-specific modified plastic products, 117 of which have been certified for use by one or more of the automobile manufacturers in China.
The Company's management team is led by Mr. Jie Han, Chairman, Chief Executive Officer and Chief Financial Officer of the Company, and Mr. Qingwei Ma, Chief Operating Officer and Director, and Mr. Junjie Ma, Head of Research and Director.
"We are very pleased to become a public company in the United States. The completion of this transaction enables us to broaden our investor base, create a liquid market for our stock, and financially support the accelerated growth of our business as we strive to become a leader in the modified plastic industry in China," said Mr. Jie Han, Chief Executive Officer of China XD Plastics. "We are very positive on the growth potential of the automobile industry in China. We estimate that by 2010, demand for modified plastics should reach 1.2 million tons per year, and our immediate goal is to penetrate the high end segment of the market leveraging our strong research and development center."
For the first nine months of 2008 Xinda's revenue was up 177.6% to $55.8 million with gross profit margin of 25%, compared to revenue of $20.1 million with gross profit margin of 20.7% during the first nine months of 2007. Currently Xinda has an annual production capacity of 40,000 tons with the potential to expand its capacity to over 100,000 tons through capacity expansion and targeted acquisitions. Xinda was founded in September 2004, currently has 296 full-time employees and is headquartered in Harbin, Heilongjiang Province, in northeast China.
Additional information with regard to the reverse merger transaction can be found on the Company's Form 8-K filed with the Securities and Exchange Commission on December 31, 2008.
About China XD Plastics Company Ltd.
China XD Plastics Company Ltd., through its wholly owned subsidiary Harbin Xinda Macromolecule Material develops, manufactures, and distributes modified plastics, primarily for the use in the automobile. Xinda's specialized plastics are used in the exterior and interior trim and in the functional components of more than 30 automobile brands manufactured in China including Audi, Red Flag, Volkswagen and Mazda. At present, Xinda manufactures approximately 145 types of automobile-specific modified plastic products, 117 of which have been certified for use by one or more of the automobile manufacturers in China.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the 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 ability to raise additional capital to finance the company's activities; the effectiveness, profitability, and the marketability of its products; legal and regulatory risks associated with the share exchange; the future trading of the common stock of the company; the ability of the company to operate as a public company; the period of time for which its current liquidity will enable the company to fund its operations; the company's ability to protect its proprietary information; general economic and business conditions; the volatility of the company's operating results and financial condition; the company's ability to attract or retain qualified senior management personnel and research and development staff; 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. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry. 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, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
For more information, please contact:
China XD Plastics Company Ltd.
Mr. Jie Han, Chief Executive Officer
Phone: +86-451-8434-6600 (China)
Email: xdtfx@hotmail.com
CCG Investor Relations Inc.
Mr. Crocker Coulson, President
Phone: +1-646-213-1915 (New York)
Mr. Ed Job, CFA
Phone: +1-646-213-1914 (New York)
Email: ed.job@ccgir.com
