During the corresponding time, China Xd Plastics Co Ltd recorded a revenue increase by 91.24 % year on year, sequentially revenue grew by 104.72 %. While revenue at the China Xd Plastics Co Ltd's corporate clients
China Xd Plastics Co Ltd's Comment on Sales, Marketing and Customers
Currently, our sales network focuses on the northeastern, northern, eastern and
southwestern regions of China. We primarily sell to end customers through our
approved distributors. To a less extent, we also sell directly to end customers.
A typical customer development cycle starts when our R&D staff develops customized
products for new end customers and obtains product certifications. These end customers
are usually major automobile parts manufacturers who can only source from suppliers
like China XD with product certifications granted by major automobile manufacturers.
After we established relationships with these end customers and began to have
large volume of transactions with them, we assign end customers to our approved
distributors according to our internal policies. We also acquired end customers
with our existing certifications from time to time.
We enter into distribution agreements with local distributors in areas where
large automobile manufacturers are located. The distribution agreements usually
have a term of one year, during which period we can enter into distribution
agreements with other distributors for our products. The distributors are responsible
for marketing and distributing our products. Through the established sales channels,
we can quickly respond to local market demand, address customer needs, enhance
our ability to provide technical support and after-sales services, and lower
our marketing expenses. Our general credit term with our distributors is three
months and our collection of payment from distributors is not contingent upon
their cash collection from end customers. We manufacture products according
to orders received from our distributors and maintain a certain quantity of
raw materials based on our experience and the distributors order patterns. By
doing this we hope to ensure the smooth implementation of the production plan
of major automobile manufacturers and avoid risks of inventory shortage. We
do not provide the distributors nor end customers with the right of return,
price protection or any other concessions. We allow for an exchange of products
or return only if the products are defective.
We believe that we have been able to secure and maintain strong relationships
with end customers due to our existing certifications, advanced technologies
and high product quality, which establish a higher barrier to entry for others.
Most of the end customer relationships will be developed through our own R&D
and sales force and maintained by our R&D and sales professionals and our
distributors. According to our distribution contracts, our distributors are
prohibited from selling our competitors products and required to use the product
certificate, brand name and package standards set by us during the distribution
period. After the expiration of the distribution contracts in absence of renewal,
we retain the customer relationships with end customers.
China Xd Plastics Co Ltd’s Comment on Sales, Marketing and Customers
Currently, our sales network focuses on the northeastern, northern, eastern and
southwestern regions of China. We primarily sell to end customers through our
approved distributors. To a less extent, we also sell directly to end customers.
A typical customer development cycle starts when our R&D staff develops customized
products for new end customers and obtains product certifications. These end customers
are usually major automobile parts manufacturers who can only source from suppliers
like China XD with product certifications granted by major automobile manufacturers.
After we established relationships with these end customers and began to have
large volume of transactions with them, we assign end customers to our approved
distributors according to our internal policies. We also acquired end customers
with our existing certifications from time to time.
We enter into distribution agreements with local distributors in areas where
large automobile manufacturers are located. The distribution agreements usually
have a term of one year, during which period we can enter into distribution
agreements with other distributors for our products. The distributors are responsible
for marketing and distributing our products. Through the established sales channels,
we can quickly respond to local market demand, address customer needs, enhance
our ability to provide technical support and after-sales services, and lower
our marketing expenses. Our general credit term with our distributors is three
months and our collection of payment from distributors is not contingent upon
their cash collection from end customers. We manufacture products according
to orders received from our distributors and maintain a certain quantity of
raw materials based on our experience and the distributors order patterns. By
doing this we hope to ensure the smooth implementation of the production plan
of major automobile manufacturers and avoid risks of inventory shortage. We
do not provide the distributors nor end customers with the right of return,
price protection or any other concessions. We allow for an exchange of products
or return only if the products are defective.
We believe that we have been able to secure and maintain strong relationships
with end customers due to our existing certifications, advanced technologies
and high product quality, which establish a higher barrier to entry for others.
Most of the end customer relationships will be developed through our own R&D
and sales force and maintained by our R&D and sales professionals and our
distributors. According to our distribution contracts, our distributors are
prohibited from selling our competitors products and required to use the product
certificate, brand name and package standards set by us during the distribution
period. After the expiration of the distribution contracts in absence of renewal,
we retain the customer relationships with end customers.
Sources:
China Xd Plastics Co Ltd’s official press releases and regulatory filings; CSIMarket.com’s market research; and the financial filings and press releases of other companies cited in this report.
Updated on:
Focus of this report: China Xd Plastics Co Ltd’s corporate clients.
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