HARBIN, China, Nov. 6, 2009 (PRNewswire-Asia-FirstCall) -- China XD Plastics Company Ltd. ("China XD Plastics" or the "Company"), (OTC Bulletin Board: CXDC), is engaged in the development, manufacture, and distribution of modified plastics primarily for use in the automotive applications in China, today announced that the Company has engaged Ernst & Young to assist the Company in the implementation of Section 404 of the Sarbanes-Oxley Act of 2002 ("SOX 404").
As part of its compliance with SOX 404, the Company and its external auditor will document, examine and test financial reporting and control procedures in place, and report on the adequacy of the Company's internal financial reporting and controls systems. In addition, Ernst & Young will provide recommendations to Company management to consider for any additional controls and procedures so as to enhance the integrity of China XD Plastic's financial reporting.
"We are pleased to engage Ernst & Young as we seek to ensure that China XD Plastics is in full compliance with the requirements of the Sarbanes-Oxley Act," said Mr. Jie Han, the Chairman and CEO of China XD Plastics. "We believe this undertaking will also enhance shareholder confidence in the Company's financial reporting standards and transparency."
About China XD Plastics Company Ltd.
China XD Plastics Company Ltd., through its wholly owned subsidiary Harbin Xinda Macromolecule Material ("Xinda"), develops, manufactures, and distributes modified plastics, primarily for automotive applications. The Company'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. The Company's wholly-owned research institute is dedicated to the research and development of modified plastics, and benefits from the cooperation with well-known scientists from prestigious universities in China. As of September 30, 2009, 137 products that Xinda manufactured have been certified for use by one or more of the automobile manufacturers in China. For more information please visit http://www.chinaxd.net .
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.
