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HARBIN, China, Dec. 4 /PRNewswire-Asia-FirstCall/ — China XD Plastics
Company Ltd. (”China XD Plastics” or the “Company”), (Nasdaq: CXDC – News), the
largest Chinese developer, manufacturer, and distributor of modified plastics
primarily for use in the automotive applications in China, today announced
that it has successfully closed the private placement agreement to sell an
aggregate 15,188 shares of convertible preferred stock, resulting in aggregate
gross proceeds of approximately $15.2 million.

The preferred stock is convertible into the Company’s common stock at a
price of $4.60 per share and will accrue cumulative dividends at the rate of
6% per annum until maturity on December 1, 2012. Additionally, the investors
in the financing were issued two series of common stock purchase warrants, a
Series A Warrant and a Series B Warrant. The Series A Warrants are exercisable
into an additional 1,320,696 shares of common stock with an exercise price of
$5.50 per share. The Series A Warrant will be exercisable six months after the
closing of the transaction, and have a term of five years. The Company has
also issued to the investors in the financing a Series B Warrant that
automatically exchanges into shares of common stock under certain conditions.
The number of common shares issuable under the Series B Warrant is dependent
on the market price at the time of exercise, up to a maximum of 1,178,722. The
Company is obligated to register the shares of common stock underlying the
convertible preferred stock and warrants within a pre-defined period pursuant
to a registration rights agreement.

For more detailed information on this financing, please refer to Form 8-K
and related exhibits filed with the Securities and Exchange Commission on
Monday, November 30, 2009.

Rodman & Renshaw, LLC, a wholly owned subsidiary of Rodman & Renshaw
Capital Group, Inc. (Nasdaq: RODM – News), acted as the exclusive placement agent for
the transaction.

“We are excited about the closing of our financing, which will allow us to
expand our production capacity to 100,000 by the first quarter of 2010,” said
Mr. Jie Han, Chairman and CEO of China XD Plastics. “As we look to the future,
we see significant opportunity to leverage our proprietary technology, strong
customer base and expanded capacity to deliver positive results for our
investors.”

This press release does not constitute an offer to sell or the
solicitation of an offer to buy any securities. There shall not be any sale of
these securities in any jurisdiction in which such offering would be unlawful.
The securities offered and sold in the private placement have not been
registered under the Securities Act of 1933, as amended, or any state
securities laws, and may not be offered or sold in the United States absent
registration, or an applicable exemption from registration under the
Securities Act and applicable state securities laws.

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 the cooperation with well-known
scientists from prestigious universities in China. As of the end of September
30, 2009, 137 products that Xinda manufactured 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 increase the number of certifications; the Company’s
ability to introduce new product applications for automobiles; the
effectiveness, profitability, and the marketability of its products; the
Company’s ability to successfully expand its production capacity; 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 more information, please contact:

    China XD Plastics Company Ltd.
     Mr. Taylor Zhang, CFO
     Tel:   +1-212-747-1118 (New York)

     Mr. Allan Lao, IR Director
     Tel:   +86-451-8434-6600 (China)
     Email: 
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    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: 
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     Web:   http://www.ccgirasia.com