Investor PresentationSeptember 2009

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 Company’s ability to raise additional capital to finance the Company’s 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 Company’s ability to protect its proprietary information; the Company’s ability to secure raw material supplies to support its production plans; the Company’s ability to operate its plants efficiently; general economic and business conditions; the volatility of the Company’s operating results and financial condition; the Company’s ability to execute is expansion plans; 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. 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 materially from the anticipated results, and therefore we refer you to a more detailed discussion of the risks and uncertainties in the Company’s 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 Statement

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Who We AreWho We AreWho We Are

Oil Refineries

Plastic Resin Suppliers

Modified Plastics Manufacturers

Plastic Auto Parts Manufacturers

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 Overview

Key Facts Headquartered in Harbin, ChinaTotal usable area of 336,400 square feetAnnual production capacity of 70,000 tons with 19 operating production lines396 full time employees

ProductsModified Polypropylene, modified ABS, modified Nylon, alloy plastic, engineering plastics and environment friendly plastics, 129* of which are certified by auto makers

Applications and CustomersMainly used in automotive exterior and interior trim and functional components, as well as industrial plastic parts and components used in large-scale oil fields, mining machinery, vessel propulsion system, high-speed trains, aerospace etc.

End users include China FAW, the largest auto maker in China, Brilliance Auto, Hafei Auto, and among other car manufacturers in China.

Largest Chinese Manufacturer of Modified Plastics for automobile

applications in China

* as of June 2009

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Over 90% of Products are Modified Plastics for Automobiles

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

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

Function components (Such as air conditioner’s shell, engine cover , etc.)

Product Portfolio Divided into 6 Categories

• Modified Polypropylene • Modified ABS• Modified Nylon • Alloy Plastics• Environment-friendly plastics • Engineering Plastics • Special engineering plastics (under development)

Products and ApplicationsProducts and ApplicationsProducts and Applications

End Applications

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Sample of End-UsersSample of EndSample of End--UsersUsers

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OTC BB Symbol CXDCShare Price (previously closed on 09/01/09) $5.85Market Capitalization $231.4 MM Shares Outstanding (fully diluted)* 39.6 MM

Net Revenues (TTM) $100.6 MM

Gross Profit (TTM) $21.6MMNet Income (TTM) $15.5 MM

Earnings per Common Share (fully diluted) $0.39

P/E (TTM) 14.9XFiscal Year End December 31

Capital Market SummaryCapital Market SummaryCapital Market Summary

* Revenue, Gross Profit, Net income and P/E(TTM) / Shares Outstanding and EPS (As of June 30, 2009)

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Key MilestonesKey MilestonesKey Milestones

Listed in the US Capital Market

19 production lines in use, annual capacity reached 70,000 tons

Jul 19851

Sep 20042

Jan 20053

Jan 20064

Nov 20075

Dec 20086

Jan 20097

Capacity more than tripled and reached 25,000 tons

Xinda Macromolecule Material Research Institute was established

Harbin Xinda Macromolecule Material Inc. was founded

First 2 production lines were launched with annual capacity of 7,000 tons

Harbin Xinda Nylon factory, the predecessor of the Company was

founded

9Source: 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 OpportunityAutomobilesMarket OpportunityMarket OpportunityAutomobilesAutomobiles

Production

7.38.5 9.4

11.4

23.3%21.3%

10.6%16.4%

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2006 2007 2008 2009E0%5%

10%15%

20%25%

30%35%

Sold

7.38.9 9.6

12.4

29.2%

7.9%

21.9%23.3%

0.02.04.06.08.0

10.012.014.0

2006 2007 2008 2009E0%5%10%15%20%25%30%35%40%

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Market OpportunityModified Plastics for Automobiles

Market OpportunityMarket OpportunityModified Plastics for AutomobilesModified Plastics for Automobiles

Domestic vs. ImportsChina Automotive Plastics Demand

Source: National Bureau of Statistics of China, “Chinese markets for Automotive Plastics” from Research and Markets, and China XD’s estimate

2009 E

(1.4mm tons)

Volumes ("000 metric tons)

730955 1,060

1,414

23%

31%

11%

33%

-200

400600

8001,000

1,2001,400

1,600

2006 2007 2008 2009E0%5%

10%15%

20%25%

30%35%

40%

Sales ($ billion)

$1.01$1.36

$1.96

$2.8629%

44%

35%

46%

$-$0.50$1.00$1.50$2.00$2.50$3.00$3.50

2006 2007 2008 2009E0%

10%

20%

30%

40%

50%

2004

(0.7mm tons)

69%

31%

35%

65%

Domestic Imported

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Cash For Clunkers vs. Cars Go VillagesCash For Clunkers Cash For Clunkers vs. Cars Go Villagesvs. Cars Go Villages

• Borrowing from future sales?

• Has ended on Aug. 24, 2009

• Enough for 650,000 to 850,000 cars*

Cars Go VillagesCash For Clunkers

• Creating a new market for automobiles, most buyers are first time and potentially repeating buyers

• Will last until the end of this year

• Enough for 1-1.7MM cars***: Based on $3,500 or $4,500 rebate per car**: Based on RMB 3,000 or 5,000 rebate per car

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•Large customer base

Attractive ROI

Competitive AdvantagesCompetitive AdvantagesCompetitive Advantages

•Lower cost production

•Customized products

•High barrier of entry

Strong Competitive Position

• Geographic AdvantageAdjacent to China’s largest automobile center

The northern region of the PRC is a relatively low cost resource center

University-educated local workforce available

• Strong Government SupportExtended tax benefits: 15% tax rate through 2011

Superior credit profile at local banks over years

• Leading National R&D CenterProprietary formulas developed by our own research institute

• Excellent Customized ServiceLong history of excellent customized service to auto OEMs in China

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Manufacturing ProcessManufacturing ProcessManufacturing Process

State-of-the-Art Manufacturing Facilities

Measuring and Blending

Plasticizing and Extrusion

Cooling and Cutting

Homogenizing and Packing

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Technology InnovationTechnology InnovationTechnology Innovation

Wu, Zhongwen: Chief Scientist, Jilin UniversityZheng, Kai: Secretary General, China's Plastics Engineering Industry AssociationHuang, Yudong: Harbin Industrial UniversityLi, Bin: Eastern Forest Industry UniversityXing, Yuqing: Harbin Industrial UniversityJiang, Zhenhua: Jilin University

Industry Leading Modified Plastic Research Institute

Panel of Consultants: Top Scientists and Experts in Modified Plastics

Talents at The Research Institution

66 researchers with average working experiences over ten years in modified plastics research and development90% with PhD. Master or bachelor degrees

The most advanced auto-specific polymer research institution in ChinaHas 102 sets of state of the art equipments in macromolecule industry

Industry Leading Modified Plastic Research Institute

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By 2015, the company plans to cover East China markets and becomes one of the major suppliers in this region

By 2013, the company plans to cover North China markets and becomes one of the major suppliers in this region

Currently, the company is focusing mainly on coverage of the Northeast China

Strategic LocationStrategic LocationStrategic Location

● Represents the main targeted market in Northeast China● Represents the main targeted market in North China● 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 research and development to ensure the leading edge technology and develop more number of highvalue-added products

Increase market share through geographic expansion of sales network and selected acquisition

Focused Growth StrategyFocused Growth StrategyFocused Growth Strategy

Strategic RationaleGeographic Expansion Targeting Major Automotive Manufacturing Regions

Harbin

Changchun

Nanjing

Shenyang

Beijing

Tianjing

Shanghai

ZhejiangChongqing

Guangzhou

Shenzhen

Wuhan

Daqing

Qingdao

Fuzhou

Chengdu

300,000 tons

200,000 tons

100,000 tons

The Northeast base to achieve sales output of 100,000 tones by 2010.

The North China base to achieve sales output of 100,000 tons by 2011, together adding the total production up to 200,000 tons.

The East China base to achieve sales output of 100,000 tons by 2013, with the total production up to 300,000 tons.

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Financial HighlightsFinancial HighlightsFinancial Highlights

$2.2

$5.3

$13.7

$7.2

$9.0

2006 2007 2008 1H2008 1H2009

$13.4

$34.2

$75.8

$33.5

$58.3

2006 2007 2008 1H2008 1H2009

CAGR ≈13

8%

Revenues ($ Millions) Net Income ($ Millions)Gross Profit ($ Millions)

$2.8

$6.3

$17.3

$8.2

$12.4

2006 2007 2008 1H2008 1H2009

CAGR 149%

YoYGro

wth ≈

51%

CAGR ≈15

0%

YoYGro

wth ≈

25%

YoYGro

wth ≈

74%

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Financial HighlightsRevenue and Margin Performance

Financial HighlightsFinancial HighlightsRevenue and Margin PerformanceRevenue and Margin Performance

$10.4 $23.1 $22.3 $20.0 $26.4 $31.9

12.3%

22.7%25.1% 25.8%

17.1%

21.8%20.9%

19.7%

22.9%21.0%

16.6% 16.6%

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

$35.0

1Q08 2Q08 3Q08 4Q08 1Q09 2Q090.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Revenue Gross Margin Operating Margin

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Financial HighlightsSecond Quarter 2009

Financial HighlightsFinancial HighlightsSecond Quarter 2009Second Quarter 2009

• Revenue was $31.9 million, 38.2% increase from the Q2 2008

• Gross profit was $6.7 million, 15.1% increase from the Q2 2008

• Gross profit margin was 20.9%, compared to 25.1% in the Q2 2008

• EBITDA was $6.2 million, 12.5% increase from the Q2 2008

• Net income was $5.0 million, while non-GAAP net income excluding the non-cash charge was $5.4

million, 6.5% increase from the Q2 2008

• Diluted earnings per share was $0.13 and non-GAAP diluted earnings per share was $0.14, up

22.7% and 35.9%, respectively, from the Q1 2009

$ in millions

2009 2008 2008 2009 2008 2008

Revenue $31.9 $23.1 38.2 % $58.3 $33.5 74.2 %Gross Margin 20.9 % 25.1 % -4.2 % 21.3 % 24.3 % -3.0 %Op Income (Loss) $5.3 $5.3 -$0.2% $9.7 $7.3 31.7 %Depreciation & Amortization $0.5Net Income $5.0 $5.1 -2.0 $9.0 $7.2 25.3 %

H1 vs.H1Q2 Q2 vs.Q2 H1

Three Months Ended Six Months EndedChange Change

$0.2 89.5 $0.9 $0.4 120.6 %%%

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Financial HighlightsFinancial Ratios

Financial HighlightsFinancial HighlightsFinancial RatiosFinancial Ratios

19.4%

7.1%

67.0

1.7

1.2

1.1%

2.9%

0.9%

2008Q3

9.3%

3.5%

50.6

2.1

1.1

1.1%

3.2%

0.4%

2008Q4

14.3%

6.9%

20.0

1.5

1.3

1.1%

4.0%

0.2%

2009Q1

29.2%

9.9%

70.0

2.3

1.1

1.09%

0.9%

0.1%

2008Q2

Return on Equity

Return on Assets

Days Sales Outstanding

Inventory Turnover

Current Ratio

R&D Expenses

G&A Expenses

Selling Expenses

Significant Ratios 2008Q1 2009Q2

0.2% 0.2%

2.2% 3.5%

0.7% 0.7%

1.0 1.4

1.3 1.7

28.0 27.4

6.6% 7.7%

17.4% 14.9%

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($ '000 )June. 30,

2009Dec. 31,

2008

Cash and cash equivalents 1,467 3,869

Accounts receivable 9,732 11,235

Inventory 14,874 12,439

Total Current Assets 44,883 44,755

Property, plant and equipment, net 19,124 19,333

Total Assets 64,677 64,714

Accounts payable 17 113Short Term Debt 20,203 20,520

Total Liabilities 31,196 40,653

Total Shareholders' Equity 33,481 24,061

Total Liabilities and Shareholders’ Equity 64,677 64,714

Financial HighlightsBalance Sheet

Financial HighlightsFinancial HighlightsBalance SheetBalance Sheet

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ManagementManagementManagement

Jie Han, Chairman and Chief Executive Officer – Mr. Han founded Harbin Xinda Nylon Factory in 1985 and co-founded Xinda in 2004. With 25 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 People’s 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 Advanced Battery 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 Company’s predecessor, for 6 years. Mr. Ma has 12 years of experience in the modified plastics industry.

Junjie Ma, Chief Technology Officer – Mr. Ma has over 12 years of experience in the modified plastic industry. He successfully established the research institute and helped the Company to gain 122 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 institute’s leading position in China.

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

Cosimo J. Patti – Chairman of Compensation Committee Mr. Patti’s 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 American Oriental Bioengineering Inc. (NYSE: AOB) since 2004.

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 general manager of automobile manufacturing , successfully led Four Ring Company, a subsidiary of FAW group, to go public in China. He is one of the pioneers and outstanding contributors of FAW group’s success.

Yong Jin - Independent DirectorJin, a professor at Tsinghua University and academician of the Chinese Academy of Engineering, is an executive member of Chemical Industry and Engineering Society of China and Chinese society of particuology, vice chairman of 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 for Beijing Municipal Government, Lectureship Award recipient in fluidization by American Institute of Chemical Engineers (AIChE), the world's leading organization for chemical engineering professionals, with more than 40,000 members from 93 countries, consultant for the Germany magazine " Chemical engineering & technology ". Jin has published and presented more than 350 papers in important journals and conferences domestically and internationally, 138 of which were included in Science. Jin also has more than 30 patent applications.

Independent DirectorsIndependent DirectorsIndependent Directors

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Investment HighlightsInvestmentInvestment HighlightsHighlights

5

1

3

4

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

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Well Defined Growth Strategy– Balanced Organic Growth and Expansion through Acquisition

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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 Model– Rapidly Growing, Sustainable and Profitable Business

Largest Number of Certification– Largest Product Portfolio Certified by Leading Auto Makers in China

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China XD Plastics Company Ltd.

Mr. Taylor Zhang, CFO Phone: +1-212-747-1118 (New York)Mr. Allan Lao, IR Director Phone: +86-451-84346600 (China) Email: cxdc@chinaxd.netWebsite: www.chinaxd.net

SEC Attorney

Crone Rozynko LLP101 Montgomery Street, Suite 1950San Francisco, CA94104Phone: (415)955-8900Fax: (415)955-8910Email: mcrone@cronerozynko.com

Investor Relations Firm:

CCG Investor Relations Inc. Mr. Crocker Coulson, President +1-646-213-1915 crocker.coulson@ccgir.comMr. Ed Job, CFA Phone: +1-646-213-1914 (New York) ed.job@ccgir.com

Auditors

Bagell, Josephs, Levine & Company, LLC406 Lippincott Drive Suite JMarlton, NJ 08053Phone: (856) 346-2828Fax: (856) 396-0022Email: info@bjlcpas.com

Contact InformationContact InformationContact Information