China XD Plastics Company Limited (CXDC) reported a 52.0% YoY revenue decline to $144.8 million for Q1 2020, largely attributed to the COVID-19 pandemic's impact on the automotive sector. Gross profit fell 89.7% to $5.2 million, with a gross margin of 3.6%. The company experienced a net loss of $11.0 million, shifting from net income of $11.0 million in Q1 2019. Total volume shipped decreased 70.0% while average selling prices rose 65.6%. Operations in Harbin and Dubai faced temporary shutdowns, affecting overall performance.
China XD Plastics Company Limited (NASDAQ: CXDC) has entered into a definitive merger agreement with Faith Dawn Limited and Faith Horizon Inc. to acquire all outstanding common shares for $1.2 each, representing a 25% premium over its last closing price. The merger, expected to finalize in Q3 2020, will see the company become privately held. The agreement received unanimous approval from an independent board committee, requiring majority stockholder support for completion. The merger marks a significant strategic move for the company, although it will delist from NASDAQ.