Auto industry supplier China XD Plastics has reported first quarter 2010 gross profit up 106.7% year on year to US$11.9m on record $50m revenue, a rise of 89.6%.

Operating income was $8.4m, compared to $4.4m in the same period a year ago. Operating margin was 16.8% in the first quarter of 2010, compared to 16.6%. Q1 20101 EBITDA was $10m, up from $4.8m. Adjusted net income was $6.1m ($0.15 per share).

The company shipped 23,182 tonnes in the quarter, up 29.5% from 17,899 tonnes in Q1 2009.

“Chairman and CEO Jie Han said the company had been granted two product certifications from Shanghai General Motors (Shanghai GM), the first time its products had been certified by a US OEM.

China XD Plastics “[believes this] paves the way for us to supply auto part manufacturers selling to US OEMs and eventually expand our market opportunity to include the US in the future. We continue to see significant opportunities for the rapid and profitable growth of our business in the quarters ahead and we strongly believe we have the right strategies to participate in the expected growth of the automotive industry in China,” he added.

“In the past year, the Chinese automotive industry surpassed the United States and Japan, driven by favourable government policies, as well as solid long-term fundamentals, including low car ownership levels and rising prosperity. In addition, the competitive environment in our industry remains favourable due to high barriers to entry associated with [the] costly OEM certification process. Our business outlook remains positive, and we are on target to deliver on our guidance for the year.”