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    Investor Presentation

    March 2010

    Improve the World with Technology

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    This presentation may contain forward-looking statements and management may make additional

    forward-looking statements in response to your questions. Such written and oral disclosures are

    made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995.

    All statements other than statements of historical fact in this presentation are forward-looking

    statements, including but not limited to, the Companys ability to raise additional capital to finance

    the Companys activities; the effectiveness, profitability, and the marketability of its products; the

    period of time for which its current liquidity will enable the Company to fund its operations; the

    Companys ability to protect its proprietary information; the Companys ability to secure raw

    material supplies to support its production plans; the Companys ability to operate its plants

    efficiently; general economic and business conditions; the volatility of the Companys operating

    results and financial condition; the Companys ability to execute is expansion plans; the

    Companys ability to attract or retain qualified senior management personnel and research and

    development staff; and other risks detailed in the Companys fi lings with the Securities and

    Exchange Commission. Although we believe our expectations expressed in such forward looking

    statements are reasonable, we cannot assure you that they will be realized. Investors are

    cautioned that such forward-looking statements involve risks and uncertainties that could cause

    actual results to differ material ly from the anticipated results, and therefore we refer you to a

    more detailed discussion of the risks and uncertainties in the Companys filings with the Securities

    & Exchange Commission.

    The forward-looking statements contained in this presentation are made only of this date, and

    China XD Plastics is under no obligation to revise or update these forward-looking statements.

    Safe Harbor StatementSafe Harbor StatementSafe Harbor StatementSafe Harbor Statement

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    Who We AreWho We AreWho We AreWho We Are

    Oil Refineries

    Plastic ResinSuppliers

    Modified PlasticsManufacturers

    Plastic Auto PartsManufacturers

    Auto Makers

    Develops, manufactures, and

    distributes modified plastics, primarily

    for the use in the exterior and interior

    trim and in the functional components

    of more than 30 automobile models.

    China XDValue Creator of the Supply Chain

    China XDValue Creator of the Supply Chain

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    Corporate OverviewCorporate OverviewCorporate OverviewCorporate Overview

    Key Facts Headquartered in Harbin, China Total usable area of 336,400 square feet Annual Production Capacity of 100,000 tons with

    31 operating production lines 396 full time employees

    Products Modified Polypropylene, modified ABS, modifiedNylon, alloy plastic, engineering plastics andenvironment friendly plastics, 145* of which arecertified by auto makers

    Applications and Customers Mainly used in automotive exterior and interior

    trim and functional components, as well asindustrial plastic parts and components used in

    large-scale oil fields, mining machinery, vesselpropulsion system, high-speed trains, aerospaceetc.

    End users include China FAW, the largest automaker in China, Brilliance Auto, Hafei Auto,Shanghai Volkswagen , Shanghai GM and among othercar manufacturers in China.

    Largest Chinese Manufacturer ofModified Plastics for automobile

    applications in China

    * as of December 31, 2009

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    Over 90% of Productsare Modified Plasticsfor Automobiles

    Interior parts and components(Such as Instrument board, glovebox, etc.)

    Exterior parts and components(Such as door mirror, front and rearbumpers, etc.)

    Function components (Such as airconditioners shell, engine cover , etc.)

    Product Portfolio Divided into6 Categories

    Modified Polypropylene Modified ABS Modified Nylon Plastics Alloy Environment-friendly plastics Engineering Plastics

    Products and ApplicationsProducts and ApplicationsProducts and ApplicationsProducts and Applications

    End Applications

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    Sample ofEndSample ofEnd--UsersUsersSample ofEndSample ofEnd--UsersUsers

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    NASDAQ Global Market CXDC

    Share Price (Previously closed on 3/10/2010 $6.80

    Market Capitalization $308.7 MM

    Shares Outstanding (fully diluted)** 45.4 MM

    Net Revenues (TTM) $114.5 MM

    Gross Profit (TTM) $24.3 MM

    Net Income (TTM)* $18.4 MM

    Earnings per Common Share (Fully diluted)* $0.41

    P/E (TTM)** 16.6x

    Fiscal Year End December 31

    Capital Market SummaryCapital Market SummaryCapital Market SummaryCapital Market Summary

    * Excluding $3.2 million non-cash stock compensation expense

    **Diluted Shares Outstanding (As of December 31, 2009); EPS and PE (TTM ended September 30, 2009)

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    Key MilestonesKey MilestonesKey MilestonesKey Milestones

    19 production lines in use, annualcapacity reached 70,000 tons

    Listed on the Nasdaq Global Market

    Jul 19851

    Sep 20042

    Jan 20053

    Jan 20064

    Nov 20075

    Jan 2009

    6

    Nov 2009

    7

    Capacity more than tripled andreached 25,000 tons

    Xinda Macromolecule MaterialResearch Institute was established

    Harbin Xinda Macromolecule MaterialInc. was founded

    First 2 production lines were launchedwith annual capacity of7,000 tons

    Harbin Xinda Nylon Factory, thepredecessor of the Company was

    founded

    Listed on the OTCBB

    31 production lines in use, annualcapacity reached 100,000 tons

    Dec 2008

    Mar 2010

    8

    9

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    Source: National Bureau of Statistics of China

    Key Drivers:

    Rising income and growing affluence of middle class in China

    Growing Consumption of automobiles in China

    Economic Policy stimulating the consumption of automobiles in China

    China Automobile Sold (in million)China Automobile Production ( in million)

    Market OpportunityMarket OpportunityAutomobilesAutomobiles

    Market OpportunityMarket OpportunityAutomobilesAutomobiles

    old

    7. 8..6

    .8

    7. %. %. %

    0.0

    5.0

    10.0

    15.0

    2006 2007 2008 2009E

    0%

    10%

    20%

    30%

    40%

    Produ on

    0.0

    2.0

    4.0

    6.0

    8.0

    10.0

    12.0

    14.0

    16.0

    20 06 2 00 7 20 08 2 00 9E

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

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    Market OpportunityMarket OpportunityAutomotive Modified PlasticsAutomotive Modified Plastics

    Market OpportunityMarket OpportunityAutomotive Modified PlasticsAutomotive Modified Plastics

    Domestic vs. ImportsChina Automotive Plastics Demand

    Source: National Bureau of Statistics of China, Chinese markets for Automotive Plastics from

    Research and Markets, and China XDs estimate

    2009 E

    (1.4mm tons)

    Vo

    m

    s ("000 m

    t

    tons)

    0

    9 1 0 0

    1 414

    23%

    31%

    11%

    33%

    -

    200

    400

    600800

    1,000

    1,200

    1,400

    1,600

    2006 2007 2008 2009E

    0%

    5%

    10%

    15%20%

    25%

    30%

    35%

    40%

    Sales ($ billion)

    $1.01$1.36

    $1.96

    $2.86

    29% 35%

    44%46%

    $-

    $1.00

    $2.00

    $3.00

    $4.00

    2006 2007 2008 2009E

    0%

    10%

    20%

    30%

    40%

    50%

    2004

    (0.7mmtons)

    69%

    31%

    35%

    65%

    Domestic Im orted

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    Favorable GovernmentPolicies

    Policies 2009 2010Reduction of sales taxon smaller passengercars

    Sales tax reduced from 10% to 5% oncars with engines

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    Largecustomerbase

    AttractiveROI

    Competitive AdvantagesCompetitive AdvantagesCompetitive AdvantagesCompetitive Advantages

    Lower costproduction

    Customizedproducts

    Highbarrierto entry

    Strong Competitive Position

    Geographic Advantage

    Adjacent to Chinas largest automobilecenter

    The northern region of the PRC is arelatively low cost resource center

    University-educated local workforceavailable

    Strong Government Support

    Extended tax benefits: 15% tax ratethrough 2011

    Superior credit profile at local banks overyears

    Leading National R&D Center

    Proprietary formulas developed by ourown research create a high barrier ofentry

    Excellent Customized Service

    Long history of excellent customizedservice to auto OEMs in China

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    Manufacturing ProcessManufacturing ProcessManufacturing ProcessManufacturing Process

    State of the Art Manufacturing Facilities

    Measuringand Blending

    Plasticizing andExtrusion

    Cooling andCutting

    Homogenizingand Packing

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    Technology InnovationTechnology InnovationTechnology InnovationTechnology Innovation

    Wu, Zhongwen: Chief Scientist, Jilin University.

    Zheng, Kai: Secretary General, China's Plastics Engineering Industry Association.

    Li, Bin: Eastern Forest Industry University.

    Xing, Yuqing: Harbin Industrial University

    ZhangHuixuan:Changchun Technology University

    Jiang, Zhenhua: Jilin University

    Industry Leading Modified Plastic Research Institute

    Panel of Consultants: Top Scientists and Experts in Modified Plastics

    Talents at The Research Institution

    77 researchers with average working experiences over ten years in modified plasticsresearch and development

    90% with PhD. Master or bachelor degrees in macromolecule field

    The most advanced auto-specific polymer research institutionin China,

    Nearly 80 sets of state of the art equipments in macromoleculeindustry.

    Industry Leading Modified Plastic Research Institute

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    By 2015, thecompany plans to coverEast China markets and to

    become one of th

    e majorsuppliers in this region

    By 2013, thecompany plans to coverNorthChina markets andto become one of themajor suppliers in thisregion

    Currently, thecompany is focusingmainly on coverage of theNortheast China

    Strategic LocationStrategic LocationStrategic LocationStrategic Location

    Represents the main targeted market in Northeast China Represents the main targeted market in NorthChina Represents the main targeted market in East China

    Harbin

    Changchun

    Nanjing

    Shenyang

    Beijing

    Tianjing

    Shanghai

    Zhejiang

    Chongqing

    Guangzhou

    Shenzhen

    Wuhan

    Daqing

    Qingdao

    Fuzhou

    Chengdu

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    Achieve economy of scale

    Sustain investment in researchand development to ensure theleading edge technology anddevelop more number of highvalue-added products

    Increase market share throughgeographic expansion of sales

    network and selectedacquisition

    Focused Growth StrategyFocused Growth StrategyFocused Growth StrategyFocused Growth Strategy

    Strategic RationaleGeographic Expansion Targeting MajorAutomotive Manufacturing Regions

    Harbin

    Changchun

    Nanjing

    Shenyang

    Beijing

    Tianjing

    Shanghai

    Zhejiang

    Chongqing

    Guangzhou

    Shenzhen

    Wuhan

    Daqing

    Qingdao

    Fuzhou

    Chengdu

    300,000 tons

    200,000 tons

    100,000 tons

    The Northeast base to achieve sales outputof 100,000 tones by Q2 2010

    The NorthChina base to achieve sales outputof 100,000 tons by 2011, together adding thetotal production up to 200,000 tons.

    The East China base to achieve salesoutput of 100,000 tons by 2013, with thetotal production up to 300,000 tons.

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    $2.2

    $5.3

    $13.7

    $11.4

    $1 .2

    2006 2007 2008 9Mon

    2008

    9Mon

    2009

    $2.8

    $ .3

    $17.3

    $13.9

    $20.8

    2 0 0 6 2 0 0 7 2 0 0 8 9 Mo n

    2 0 0 8

    9Mon

    2 0 0 9

    Financial HighlightsFinancial HighlightsFinancial HighlightsFinancial Highlights

    $13.

    $34.

    $75.

    $55.

    $94.5

    2006 2007 2008 9Mon

    2008

    9Mon

    2009

    Revenues ($ Millions)Net Income ($ Millions)

    Gross Profit ($ Millions)

    *Net income for 9Mon 2009 is adjusted by excluding non-cash stock compensation of $3,191,430

    *

    $13.0

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    Financial HighlightsFinancial HighlightsRevenue and Margin PerformanceRevenue and Margin Performance

    Financial HighlightsFinancial HighlightsRevenue and Margin PerformanceRevenue and Margin Performance

    *Operating margins for 2Q2009 and 3Q2009 are adjusted by excluding non-cash stock compensation of$434,093 and $2,757,337, respectively

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    Financial HighlightsFinancial HighlightsThird Quarter 2009Third Quarter 2009

    Financial HighlightsFinancial HighlightsThird Quarter 2009Third Quarter 2009

    Revenue was $36.2 million, 62.1% increase from the Q3 2008

    Gross profit was $8.4 mill ion, 45.9% increase from the Q3 2008

    Gross profit margin was 23.3%, compared to 25.8% in the Q3 2008

    BITDA was $7.6 million, 57.1% increase from the Q3 2008

    Net income was $4.0 mill ion, while non-GAAP net income excluding the non-cash charges of $2.7 was $6.7

    million, 58.2% increase from the Q3 2008 Diluted earnings per share was $0.10 and non-GAAP diluted earnings per share was $0.17, up from diluted

    earnings per share of $0.13 for the Q2 2009

    $ in millions

    2009 2008 2009 2008

    Revenue $36.2 $22.3 69.3%$94.5 $55.8Gross Margin 23.3%Op Income (Loss) $4.3 $4.7 16.3%$14.0 $12.0Depreciation & Amortization $0.6EBITDA $7.6 $4.9 47.9%$18.7 $12.6

    Net Income (Loss) $4.0 $4.2 13.4%$13.0 $11.4

    Third Quarter ended YoYChanges

    YoYChanges

    First 9 Months ended

    25.8%

    $0.3 112.6%

    22.1% 24.9%62.1%

    -7.7%

    57.1%-6.8%

    100.8% $1.5 $0.7

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    Financial HighlightsFinancial HighlightsFinancial RatiosFinancial Ratios

    Financial HighlightsFinancial HighlightsFinancial RatiosFinancial Ratios

    Significant Ratios 2008Q2 2008Q3 2008Q4 2009Q1 2009Q2 2009Q3

    Selling Expenses 0.1% 0.9% 0.4% 0.2% 0.2% 0.3%

    G&A Expenses 0.9% 2.9% 3.2% 4.0% 3.5% 10.0%

    R&D Expenses 1.09% 1.1% 1.1% 1.1% 0.7% 1.0%

    Current Ratio 1.1 1.2 1.1 1.3 1.4 1.9

    Inventory Turnover 2.3 1.7 2.1 1.5 1.7 1.8

    Days SalesOutstanding

    70.0 67.0 50.6 20.0 27.4 29.8

    Return on Assets 9.9% 7.1% 3.5% 6.9% 7.7% 6.3%

    Return on Equity 29.2% 19.4% 9.3% 14.3% 14.9% 9.8%

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    ($ '000 )Sept. 30,

    2009

    Dec. 31,

    2008

    Cash and cash equivalents 5,065 3,869

    Accounts receivable 11,977 11,235

    Inventory 15,277 12,439

    Total Current Assets 43,282 44,755

    Property, plant and equipment, net 19,676 19,333

    Total Assets 63,202 64,714

    Accounts payable 627 113

    Sh

    ortTerm Debt 20,216 20,520

    Total Liabilities 23,026 40,653

    Total Shareholders' Equity40,176 24,061

    Total Liabilities and Shareholders Equity 63,202 64,714

    Financial HighlightsFinancial HighlightsBalance SheetBalance Sheet

    Financial HighlightsFinancial HighlightsBalance SheetBalance Sheet

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    ManagementManagementManagementManagement

    Jie Han, Chairman and ChiefExecutive Officer Mr. Han founded Harbin Xinda Nylon Factory in 1985 and co-

    founded Xinda in 2004. With 26 years of industry experience, Mr. Han is an expert in the modified plastic industry. He

    currently serves as executive director of China Plastic Processing Industry Association, as an outstanding entrepreneur

    at the industry of modified plastics, and as director of the Heilongjiang Industry Commerce Association. In addition, Mr.

    Han serves as a deputy to the Harbin Municipal Peoples Congress.

    Taylor Zhang - Chief Financial Officer Mr. Zhang is a native of Harbin and has over seven years of experience in

    finance and operation in a broad range of industries. Prior joining China XD, Mr. Zhang served as CFO of AdvancedBattery Technologies, Inc (Nasdaq: ABAT). From 2007 to 2008, he served as Executive Vice President of Finance in

    China Natural Gas (Nasdaq: CHNG). From 2005 to 2007, Mr. Zhang worked as a research analyst in New York Private

    Equity . He holds a MBA from University of Florida.

    Qingwei Ma, Chief Operating Officer Appointed as Chief Operating Officer in 2008, Mr. Ma had been serving the

    company and was General Manager of Xinda Macromolecule from 2004 to 2008, during which Mr. Ma led the

    successful establishment of sales network, building a comprehensive system ensuring effective and efficient purchase,

    production, marketing and other functions. Prior to joining Xinda, Mr. Ma worked for Harbin Xinda Nylon Factory, the

    Companys predecessor, for 6 years. Mr. Ma has 13 years of experience in the modified plastics industry.

    Junjie Ma, ChiefTechnology Officer Mr. Ma has over 13 years of experience in the modified plastic industry. He

    successfully established the research institute and helped the Company to gain more than 100 certifications from

    Chinese auto makers, the largest number of certifications among Chinese companies. He has organized and formed a

    top class science advisory team and maintains close collaboration relationship with Chinese macromolecule well-known

    science R&D institutes and universities. As a result, Mr. Ma is effectively taking full advantage of state-of-the-art R&D

    devices and top technique talents to keep the institutes leading position in China.

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    LawrenceW. Leighton Chairman of Audit CommitteeMr. Leighton has had an extensive 40 year international investment banking career. Mr. Leighton received his BSEdegree in engineering from Princeton University and an MBA degree from Harvard Business School. His previouspositions includes Co-Head of the Corporate Finance Department at Clark, Dodge & Co. , Limited Partner of BearStearns, Managing Director of JPMorgan Chase Bank and CEO of the U.S. investment bank of Credit Agricole, themajor French Bank.

    Cosimo J. Patti Chairman ofCompensation CommitteeMr. Pattis previous positions include roles as Senior Director of Strategy Management, Director of Business Strategy,and Senior Vice President of Lehman Brothers. He is an Arbitrator of SEC and National Association of Securities. Mr.

    Patti has been an Independent Director of NYSE and Nasdaq listed companies.

    Linyuan Zhai Chairman of Nomination CommitteeMr. Zhai worked for China FAW Group Corporation for 37 years with abundant experience in terms of technology,production, and business management. He is a Senior Expert in the auto industry. Mr. Zhai served as generalmanager of automobile manufacturing , successful ly led Four Ring Company, a subsidiary of FAW group, to gopublic in China. He is one of the pioneers and outstanding contributors of FAW groups success.

    Yong Jin - Independent DirectorJin, a professor at Tsinghua University and academician of the Chinese Academy of Engineering, is an executivemember of Chemical Industry and Engineering Society of China and Chinese society of particuology, vice chairmanof China Institute of Ecological Economy, director of Industrial Ecology Economy and Technology Committee, Council

    Convenor of the Chemical discipline in the State Council Academic Degrees Committee, professional advisers forBeijing Municipal Government, Lectureship Award recipient in fluidization by American Institute of ChemicalEngineers (AIChE), the world's leading organization for chemical engineering professionals, with more than 40,000members from 93 countries, consultant for the Germany magazine " Chemical engineering & technology ". Jin haspublished and presented more than 350 papers in important journals and conferences domestically andinternationally, 138 of which were included in Science. Jin also has more than 30 patent applications.

    Independent DirectorsIndependent DirectorsIndependent DirectorsIndependent Directors

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    InvestmentInvestment HighlightsHighlightsInvestmentInvestment HighlightsHighlights

    5

    1

    3

    4

    6 Seasoned Management Team With Extensive Professional Knowledge and Years of Experience of Serving Auto OEMs

    2

    Well Defined Growth Strategy Balanced Organic Growth and Expansion through Acquisition

    7

    Industry Leading R&D Center State of the Art Equipment and Experienced Research Team

    Tremendous Market Demand Driven by Large and High Growth Addressable Automobile Market in China

    High Barriers to Entry Due to Strict Certification Requirements by Automotive Manufacturers

    Proven Operating ModelAgency Distribution and Overall Technical Services

    Largest Number ofCertification

    Largest Product Portfolio Certified by Leading Auto Makers in China

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    China XD Plastics Company Ltd.

    Mr. Taylor Zhang, CFOPhone: +1-212-747-1118 (New York)Mr. Allan Lao, IR DirectorPhone: +86-451-84346600 (China)Email: [email protected]

    Website: www.chinaxd.net

    SEC Attorney

    The Crone Law Group101 Montgomery Street, Suite 1950San Francisco, CA94104

    Phone: (415)955-8900Fax: (415)955-8910Email: [email protected]

    Investor Relations Firm:

    CCG Investor Relations Inc.Mr. Crocker Coulson, [email protected]. Ed Job, CFA

    Phone: +1-646-213-1914 (New York)[email protected]

    Auditors

    Moore Stephens Hong Kong905 Silvercord Tower 2, 30 Canton Road,Tsimshatsui, Kowloon, Hong Kong.

    Tel: +852-2375-3180,Fax: +852-2375-3828web: www.ms.com.hkA member firm ofMoore StephensInternational Limited

    Contact InformationContact InformationContact InformationContact Information

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    Appendix:Appendix: NonNon--GAAPGAAPReconciliationReconciliation

    Three Months Ended September 30, 2009

    Net Income (MM) Basic EPS Diluted EPS

    Adjusted Net Income - Non GAAP $6.7 $0.17 $0.17

    Non-Cash Stock-based compensation (1) $2,7 $0.07 $0.07

    Net Income - GAAP $4.0 $0.10 $0.10

    Nine Months Ended September 30, 2009

    Net Income (MM) Basic EPS Diluted EPS

    Adjusted Net Income - Non GAAP $16.2 $0.68 $0.41

    Non-Cash Stock-based compensation (1) $3.2 $0.14 $0.08

    Net Income - GAAP $13.0 $0.54 $0.33

    (1) The adjustment to Non-GAAP is related to non-cash stock compensation