China XD Plastics, supplier of polymer composite materials primarily for automotive applications, said second quarter 2019 revenue was US$463.1m, an increase of 46% year on year.

Gross profit was $65.3m, up 16.2%, gross margin fell 360 basis points to 14.1% and net income rose 47.4% to $40.1m.

EBITDA was up 26.7% to $70.1m.

Total volume shipped was up 2.8% to 106,609 tonnes.

"We are pleased with our quarterly results with significant top and bottom line growth." said chairman and CEO Jie Han.

"During the first half of this year, we have witnessed weakness in both production and sales of China's auto industry, trending low for 12 consecutive months.

"Amid the negative growth environment, the small and medium-sized competitors of our industry in China have experienced difficulty to fulfill customers' orders due to reasons such as changing financial conditions and tougher environmental policies.

"As a result, customers have started redirecting their orders to larger suppliers such as China XD."

According to the China Association of Automobile Manufacturers, automobile production and sales in China decreased by 13.7% and 12.4%, respectively, for the first half year of 2019 as compared to the same period in 2018.