National Press Release

HARBIN, China, March 19 /PRNewswire-Asia-FirstCall/ -- China XD Plastics Company Ltd. ("China XD Plastics" or the "Company"), (OTC Bulletin Board: CXDC), as the largest Chinese manufacturer of modified plastics for automotive applications, is engaged in the development, manufacturing, and distribution of modified plastics primarily for use in automotive applications, today announced that the Company's wholly owned subsidiary, Harbin Xinda Macromolecule Material Co., Ltd. ("Xinda"), received a renewed High-Technology Enterprise Certificate ("the Certificate") granted by Chinese government.

In order to tighten qualification requirements to receive the High-Technology Enterprise Certificate, starting in mid-2007, provincial governments in China began to reassess criteria to qualify for the High-Tech Enterprise Certificate. Those criteria include the requirement for the percentage of revenue generated from proprietary high technology products or services to be at least 60% of total revenue. At the same time, the government began to reassess all the enterprises that have previously received the Certificate. If the requirements are not met, those enterprises will no longer to be qualified to receive the preferential income tax rate.

Xinda's status as a High-Tech company was reassessed and renewed by the government as it became a wholly-owned foreign enterprise ("WOFE") upon the completion of its reserve merger in January of 2009. The certificate qualifies the Company to receive a preferential income tax rate of 15% versus the regular rate of 25% for three years, effective January 1, 2008. In addition, as the Company is located in a special economic development zone in Harbin, Heilongjiang Province, it is qualified to receive an additional 50% reduction on top of the 15% preferential income tax rate for three years effective January 1, 2008. Combined, the income tax rate for the Company from 2008 to 2010 is 7.5%.

"We are pleased to be qualified again as a High-Technology enterprise and continue to benefit from a lower income tax rate, which will have a significantly positive effect on our financial performance," said Mr. Jie Han, Chairman and Chief Executive Officer of China XD Plastics. "We also believe that the Certification will enhance our competitive position and reinforce our commitment to being an industry leader in the research and development of modified plastics."

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 technology collaboration with well-known scientists from leading Universities in China. 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. 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. 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 Company's ability to successfully expand its production capacity; the future trading of the common stock of the company; the Company's ability 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 further information, please contact:

    China XD Plastics Company Ltd.
     Mr. Kirby Zhao, US Representative
     Tel: +1-212-747-1118 (New York)

     Mr. Allan Lao, IR Director
     Tel:   +86-451-84346600 (China)
     Email: ir@chinaxd.net
     Web:   http://www.chinaxd.net/

    CCG Investor Relations Inc.
     Mr. Crocker Coulson, President
     Tel: +1-646-213-1915 (New York)

     Mr. Ed Job, CFA
     Tel:   +1-646-213-1914 (New York)
     Email: ed.job@ccgir.com
     Web:   http://www.ccgirasia.com/

SOURCE China XD Plastics Company Ltd.