JINJIANG, Fujian Province, China, May 9,
2011 /PRNewswire-Asia/ -- China Ceramics Co., Ltd. (NASDAQ
Global Market: CCCL, CCCLW, CCCLU) ("China Ceramics" or the
"Company"), a leading Chinese manufacturer of ceramic tiles used
for exterior siding and for interior flooring and design in
residential and commercial buildings, today announced financial
results for the first quarter ended March
31, 2011.
First Quarter 2011
Highlights
- Revenue was RMB 307.9 million
(US$ 46.8 million), up 34.4% from the
first quarter of 2010;
- Gross profit was RMB 95.3 million
(US$ 14.5 million), up 37.5% from the
first quarter of 2010;
- Gross profit margin was 31.0%, up 80 basis points from the
first quarter of 2010;
- Net profit was RMB 54.0 million
(US$ 8.2 million), up 19.2% from the
first quarter of 2010;
- Non-GAAP net profit, which excludes the share-based
compensation expenses, was RMB 61.1
million (US$ 9.3 million), up
34.9% from RMB 45.3 million
(US$ 6.6 million) in the first
quarter of 2010;
- Earnings per fully diluted share were RMB 2.96 (US$
0.45).
“We are very pleased to report strong financial results for the
first quarter 2011 as they reflect the Company’s strong market
positioning and the continued execution of our business plan,” said
Mr. Jiadong Huang, CEO of China
Ceramics. “By the end of 2011, the expansion of our Hengda
and Hengdali facilities will be approximately 90% over that of its
2010 total capacity and will accommodate continued demand from Tier
II and Tier III cities and help us to solidify our leadership
position in the sector. Our development of new and exciting
products continues with the introduction of a new product series of
polished glazed tile.”
First Quarter 2011
Results
Revenue for the first quarter ended March 31, 2011 was RMB
307.9 million (US$ 46.8
million), up 34.4% from RMB 229.1
million (US$ 33.5 million)
from the first quarter ended March 31,
2010. The year-over-year increase in revenue was primarily
driven by a 29.5% increase in sales volume to 11.4 million square
meters in the first quarter of 2011 from 8.8 million square meters
in the first quarter of 2010. The growth in volume was primarily
due to increased production capacity at both the Jinjiang Plant
("Hengda") and the Gaoan Plant ("Hengdali"), both of which operate
at full capacity. Hengda also raised the selling price of its
porcelain tile by 5% in February
2011, which led to RMB 10.2
million (US$ 1.6 million) of
the revenue increase.
Gross profit for the first quarter ended March 31, 2011 was RMB
95.3 million (US$ 14.5
million), up 37.5% from RMB 69.3
million (US$ 10.1 million) for
the first quarter ended March 31,
2010. The year-over-year increase in gross profit was mostly
driven by the higher sales volume in the most recent quarter. Gross
profit margin was 31.0% compared to 30.2% for the same period in
2010.
Administrative expenses for the first quarter ended
March 31, 2011 were RMB 15.6 million (US$ 2.4
million), up 169.0% from RMB 5.8
million (US$ 0.8 million) in
the first quarter of 2010. The year-over-year increase in
administrative expenses was primarily due to the additional
expenses of RMB 7.1 million
(US$ 1.1 million) of non-cash
share-based compensation expenses related to the 2010 Incentive
Compensation Plan designed to retain directors and senior
management. Additional non-cash share-based compensation expenses
of RMB 14.5 million (US$ 2.2 million) will be charged through from
2012 to January 2014.
Profit before taxation for the first
quarter ended March 31, 2011 was
RMB 74.9 million (US$ 11.4 million), up 23.8% from RMB 60.5 (US$ 8.9
million) million in the first quarter of 2010. The
year-over-year increase in profit from operations was the result of
higher revenue and a slightly improved gross margin, although
offset by higher administrative expenses.
Net profit for the first quarter ended March 31, 2011 was RMB
54.0 million (US$ 8.2
million), up 19.2% from RMB 45.3
million (US$ 6.6 million) in
the same period of 2010. The year-over-year increase in net profit
was the result of higher revenue and a slightly improved gross
margin, but offset by higher administrative expenses.
Earnings per fully diluted share were RMB 2.96 (US$ 0.45)
for the first quarter ended March 31,
2011, down 33.5% from RMB 4.45
(US$ 0.65) over the same period in
2010. Earnings per fully diluted share in the first quarter of 2011
were computed using 18.2 million shares while net earnings per
fully diluted share in the first quarter of 2010 were computed
using 10.2 million shares.
Non-GAAP profit before taxation, which
excludes the share-based compensation expenses, was RMB 82.0 million (US$ 12.5
million) in the first quarter ended March 31, 2011, up 35.5% from RMB 60.5 million (US$ 8.9
million) in 2010.
Non-GAAP net profit, which excludes the share-based
compensation expenses, was RMB 61.1
million (US$ 9.3 million) in
the first quarter ended March 31,
2011, an increase of 34.9% from RMB
45.3 million (US$ 6.6 million)
in 2010.
Non-GAAP earnings per fully diluted share, which excludes
the share-based compensation expenses, was RMB 3.35 (US$ 0.51)
in the first quarter ended March 31,
2011, down 24.7% from RMB 4.45
(US$ 0.65) in 2010.
First Quarter 2011 Statements of
Selected Financial Position Items
- Cash and bank balances were RMB 84.9
million (US$ 13.0 million) as
of March 31, 2011, compared with
RMB 263.5 million (US$ 39.9 million) as of December 31, 2010. The decrease in cash and bank
balances was attributed to the purchase of new kilns and production
lines to replace older manufacturing equipment at Hengda as well as
the continuation of its Phase II construction during the first
quarter of 2011.
- Inventory turnover was 83 days as of March 31, 2011 compared with 73 days as of
December 31, 2010. The increase in
inventory turnover was because the Company increased its inventory
to meet the backlog of orders expected to be shipped in the second
quarter of 2011, which is usually the peak season of the year.
Also, considering the increase in the raw materials’ purchase
prices, the Company stored up more raw materials for future
production in the first quarter of 2011.
- Trade receivables turnover was 91 days as of March 31, 2011 compared with 95 days as of
December 31, 2010. The Company's
trade receivables include a 17% value-added-tax ("VAT"), whereas
reported revenue is net of VAT. Trade receivables turnover
excluding VAT amounts was 78 days as of March 31, 2011 compared with 81 days as of
December 31, 2010. The decrease in
the trade receivables turnover was due to the better cash
collection in the first quarter ended March
31, 2011.
- Trade payables turnover was 82 days as of March 31, 2011 compared with 76 days as of
December 31, 2010. The increase in
the trade payables turnover resulted from an increased balance of
trade payables as of March 31, 2011
concurrent with a significant increase in inventory.
- Bank borrowings (including both short-term borrowings and
long-term borrowings) were RMB 97.0
million (US$ 14.8 million) as
of March 31, 2011 compared to
RMB 97.0 million (US$ 14.7 million) as of December 31, 2010.
Liquidity and Capital Resources
Cash flow used in operating activities was RMB 15.2 million (US$ 2.3
million) for the quarter ended March
31, 2011, compared with the cash flow provided by operating
activities of RMB 14.7 million
(US$ 2.1 million) for the same period
in 2010. The year-over-year decrease of RMB
29.9 million (US$ 4.4 million)
was mainly due to the increase in inventory balances and the change
in the Company’s method of settling the sales rebates (as described
below) with its distributors. Considering the trend of raw
materials’ purchase price increase, the Company stored up more raw
materials for future production, resulting in additional cash
outflow of RMB 18.4 million
(US$ 2.9 million) in the first
quarter of 2011. Furthermore, the change in the Company’s
method of settling its sales rebates with its distributors also led
to the decrease of cash flows from operating activities. In
the past, the Company recognized revenue net of sales rebates. In
term of actual settlement, the Company has been collecting the
gross amounts of accounts receivable inclusive of the sales rebates
from its distributors. In comparison, the Company has started to
directly deduct the sales rebates from accounts receivables
collected from its distributors in 2011, which directly contributed
to an approximately RMB 17.9 million
(US$ 2.7 million) decrease in the
cash flows from account receivable collection in the first quarter
of 2011 compared to the same quarter in 2010.
Cash flow used in investing activities in
the quarter ended March 31, 2011 was
RMB 163.3 million (US$ 24.8 million), compared to RMB 36.4 million (US$ 5.3
million) of cash flow used in investing activities in the
same period of 2010. The increase was mainly due to an increase in
acquisition of property, plant and equipment for (i) Phase II
construction and expansion of Hengdali (RMB
100.6 million (US$ 15.3
million)) (ii) the initial stage of Phase III construction
for Hengdali (RMB 28.5 million
(US$ 4.3 million)) and (iii)
improvements at our Hengda facility (RMB
35.1 million (US$ 5.4
million)), which led to capital expenditures totaling an
aggregate of RMB 164.2 million
(US$ 25.0 million) during the first
quarter of 2011.
Cash flow generated from financing activities was nil for
the quarter ended March 31, 2011, as
compared to RMB 3.5 million
(US$ 0.5 million) cash generated from
financing activities in the same period of 2010.
Recent Developments
On April 7, 2011, pursuant to the
terms of the merger and stock purchase agreement dated August 19, 2009, the Company issued 1,794,800
shares to Mr. Wong Kung Tok, the
selling shareholder of China Ceramics' predecessor company. The
issuance was based upon the Company having achieved certain
earnings thresholds in 2010. After giving effect to the 1,794,800
shares issued to Mr. Wong, China Ceramics has 18,254,002 issued and
outstanding shares and 2,774,300 issued and outstanding
warrants.
During the second quarter of 2011, China Ceramics started to
produce a new product series of polished glazed tile. This
tile is large with a glossy surface and a marble or stone-like
pattern. The Company believes that this new product represents both
a functional and cost-effective replacement for actual marble or
stone materials. The new brand name for this new product
series of polished glazed tile is “Pottery Capital of Tang
Dynasty”.
Business Outlook
The Company's backlog of orders for delivery in the second
quarter of 2011 is approximately RMB 372.7
million (US$ 56.9 million),
representing a year-over-year growth rate of 36.9% compared to the
second quarter of 2010. The expected sales volume in the second
quarter of 2011 is approximately 13.8 million square meters,
representing a 30.2% increase from 10.6 million square meters sold
in the second quarter of 2010.
Total capital expenditures for the Company were approximately
RMB 164.2 million (US$ 25.0 million) (of which approximately
RMB 129.1 million (US$ 19.6 million) related to Hengdali) in the
first quarter ended March 31,
2011.Total expenditures for the remainder of 2011 are planned to be
an estimated RMB 370 million (US
$57 million) (of which approximately
RMB 195 million (US $30 million) will relate to Hengdali).
After the completion of the improvements at Hengda and the
completion of Phase II at Hengdali by the end of 2011, China
Ceramics expects to have a total annual production capacity of
approximately 72 million square meters. This is expected to be
comprised of 42 million square meters of total capacity from the
Hengda facility and 30 million square meters of total capacity from
the Hengdali facility.
The completion of expansion at Hengdali will be postponed to the
end of 2012. Capital expenditures to complete the expansion of the
Hengdali facility are expected to be approximately RMB 230 million (US $35
million) in 2012, which is expected to provide an additional
14 million square meters of capacity in 2013. No capital
expenditures are expected for Hengda in 2012.
The Company believes that its current cash balances, combined
with its expected future cash flow from operations and its
borrowing capacity will be sufficient to meet the remaining capital
expenditure requirements of the production capacity expansion
associated with the Hengda and Hengdali facilities.
Conference Call Information
The Company will host a conference call at 9:00 am EDT on Monday, May
9, 2011. Listeners may access the call by dialing +1 (866)
395-5819 five to ten minutes prior to the scheduled conference call
time. International callers should dial +1 (706) 643-6986. The
conference participant pass code is 64079321. A replay of the
conference call will be available for 14 days starting from
11:00 am ET on Monday, May 9, 2011. To access the replay, dial
+1 (800) 642-1687. International callers should dial +1 (706)
645-9291. The pass code is 64079321.
About China Ceramics Co., Ltd.
China Ceramics Co., Ltd. is a leading manufacturer of ceramic
tiles in China. The Company's
ceramic tiles are used for exterior siding, interior flooring, and
design in residential and commercial buildings. China Ceramics'
products, sold under the "Hengda" or "HD", "Hengdeli" or "HDL", the
"TOERTO" and "WULIQIAO" brands, and the new "Pottery Capital of
Tang Dynasty" brands, are available in over 2,000 styles, colors
and sizes combinations and are distributed through a network of
exclusive distributors or directly to large property developers.
For more information, please visit http://www.cceramics.com.
Currency Convenience Translation
The Company's financial information is stated in Reminbi
("RMB"). The translation of RMB amounts into United States dollars in the earning release
is included solely for the convenience of readers. For statements
of financial position data, translation of RMB into U.S. dollars
has been made using historic spot exchange rates published by
www.federalreserve.gov. For statements of comprehensive income data
and statements of cash flows data, translation of RMB into U.S.
dollars has been made using the average of historical daily
exchange rates. Such translations should not be construed as
representations that RMB amounts could be converted into U.S.
dollars at that rate or any other rate, or to be the amounts that
would have been reported under IFRS.
Safe Harbor Statement
Certain of the statements made in this press release are
"forward-looking statements" within the
meaning and protections of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. Forward-looking statements include statements
with respect to our beliefs, plans, objectives, goals,
expectations, anticipations, assumptions, estimates, intentions,
and future performance, and involve known and unknown risks,
uncertainties and other factors, which may be beyond our control,
and which may cause the actual results, performance, capital,
ownership or achievements of the Company to be materially different
from future results, performance or achievements expressed or
implied by such forward-looking statements. All statements other
than statements of historical fact are statements that could be
forward-looking statements. You can identify these forward-looking
statements through our use of words such as
"may," "will,"
"anticipate," "assume,"
"should," "indicate,"
"would," "believe,"
"contemplate," "expect,"
"estimate," "continue,"
"plan," "point to,"
"project," "could,"
"intend," "target" and
other similar words and expressions of the future.
All written or oral forward-looking statements attributable
to us are expressly qualified in their entirety by this cautionary
notice, including, without limitation, those risks and
uncertainties described in our annual report on Form 20-F for the
year ended December 31, 2010 and
otherwise in our SEC reports and filings, including the final
prospectus for our offering. Such reports are available upon
request from the Company, or from the Securities and Exchange
Commission, including through the SEC's Internet
website at http://www.sec.gov. We have no obligation and do not
undertake to update, revise or correct any of the forward-looking
statements after the date hereof, or after the respective dates on
which any such statements otherwise are made.
FINANCIAL TABLES FOLLOW
|
|
CHINA
CERAMICS CO., LTD. AND ITS SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
|
|
(RMB in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
As at
March 31, 2011
|
|
As
at
December 31,
2010
|
|
|
(Unaudited)
|
|
|
|
ASSETS AND
LIABILITIES
|
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Property, plant and
equipment
|
603,320
|
|
459,161
|
|
Land use rights
|
31,769
|
|
31,936
|
|
Goodwill
|
3,735
|
|
3,735
|
|
|
638,824
|
|
494,832
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
Inventories
|
213,841
|
|
177,217
|
|
Trade receivables
|
340,709
|
|
282,976
|
|
Prepayments and other
receivables
|
22,681
|
|
8,907
|
|
Cash and bank
balances
|
84,923
|
|
263,495
|
|
|
662,154
|
|
732,595
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Trade payables
|
206,380
|
|
178,382
|
|
Accrued liabilities and other
payables
|
34,640
|
|
46,108
|
|
Interest-bearing bank
borrowings
|
72,000
|
|
72,000
|
|
Income tax payable
|
18,540
|
|
22,576
|
|
|
331,560
|
|
319,066
|
|
Non-current
liabilities
|
|
|
|
|
Long term borrowings
|
25,000
|
|
25,000
|
|
Deferred tax
liabilities
|
1,113
|
|
1,122
|
|
|
26,113
|
|
26,122
|
|
|
|
|
|
|
Net current
assets
|
330,594
|
|
413,529
|
|
|
|
|
|
|
Net assets
|
943,305
|
|
882,239
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Total
shareholders' equity
|
943,305
|
|
882,239
|
|
|
|
|
|
|
|
|
|
CHINA
CERAMICS CO., LTD. AND ITS SUBSIDIARIES
|
|
UNAUDITED
CONSOLIDATED
STATEMENTS
OF COMPREHENSIVE
INCOME
|
|
(RMB in
thousands, except EPS and
share data)
|
|
|
|
|
|
Three months
ended
|
|
|
|
March
31
|
December
31
|
March
31
|
|
|
|
2011
|
2010
|
2010
|
|
|
|
|
|
|
|
Revenue
|
|
307,865
|
273,050
|
229,110
|
|
Cost of
Sales
|
|
(212,554)
|
(181,553)
|
(159,825)
|
|
Gross profit
|
|
95,311
|
91,497
|
69,285
|
|
Selling and distribution
expenses
|
|
(2,534)
|
(2,444)
|
(1,480)
|
|
Administrative
expenses
|
|
(15,620)
|
(6,498)
|
(5,783)
|
|
Finance costs
|
|
(1,873)
|
(1,544)
|
(1,497)
|
|
Other income
|
|
276
|
1,045
|
16
|
|
Other expenses
|
|
(692)
|
-
|
-
|
|
Profit before
taxation
|
|
74,868
|
82,056
|
60,541
|
|
Income tax expense
|
|
(20,857)
|
(21,549)
|
(15,291)
|
|
Net Profit for
the period
|
|
54,011
|
60,507
|
45,250
|
|
Attributable to: Shareholders of
the Company
|
|
|
|
|
|
EPS-Basic
|
|
2.96
|
3.71
|
4.45
|
|
EPS-Diluted
|
|
2.96
|
3.71
|
4.45
|
|
Shares used in calculating basic
EPS
|
|
|
|
|
|
Basic
|
|
18,254,002
|
16,287,698
|
10,164,298
|
|
Diluted
|
|
18,254,002
|
16,287,698
|
10,164,298
|
|
|
|
|
|
|
|
|
|
|
CHINA
CERAMICS CO., LTD. AND ITS SUBSIDIARIES
|
|
UNAUDITED
SALES VOLUME AND
AVERAGE SELLING
PRICE
|
|
|
|
|
|
Three months
ended
|
|
|
|
March
31
|
December
31
|
March
31
|
|
|
|
2011
|
2010
|
2010
|
|
|
|
|
|
|
|
Sales volume (square
meters)
|
|
11,429,245
|
10,110,484
|
8,798,307
|
|
Average Selling Price (in
RMB/square meter)
|
|
26.9
|
27.0
|
26.0
|
|
Average Selling Price (in
USD/square
meter)
|
|
4.1
|
4.2
|
3.8
|
|
|
|
|
|
|
|
|
About Non-GAAP Financial Measures
In addition to China Ceramics' condensed consolidation financial
results under International Financial Reporting Standards ("IFRS"),
the Company also provides Non-IFRS financial measures (referred to
as Non-GAAP financial measures) for the first quarter of 2011,
including Non-GAAP profit before taxation, Non-GAAP net income and
Non-GAAP earnings per fully diluted shares, all excluding the
share-based compensation expenses from their comparable GAAP
measure. The Company believes that these Non-GAAP financial
measures provide investors with another method for assessing China
Ceramics' operating results in a manner that is focused on the
performance of its ongoing operations and excludes the share-based
compensation expenses incurred for the stock option. Readers are
cautioned not to view Non-GAAP results on a stand-alone basis or as
a substitute for results under GAAP, or as being comparable to
results reported or forecasted by other companies, and should refer
to the reconciliation of GAAP results with Non-GAAP results in the
attached financial information. The Company believes that both
management and investors benefit from referring to these Non-GAAP
financial measures in assessing the performance of China Ceramics
and when planning and forecasting future periods. The accompanying
tables have more details on the GAAP financial measures that are
most directly comparable to Non-GAAP financial measures and the
related reconciliation between these financial measures.
|
|
CHINA
CERAMICS CO., LTD.
|
|
Unaudited
Reconciliation of GAAP to
Non-GAAP
|
|
Three months
ended March 31,
2011
|
|
|
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
|
RMB'000
|
RMB'000
|
RMB'000
|
|
USD'000
|
USD'000
|
USD'000
|
|
Profit before
taxation
|
74,868
|
7,111
|
81,979
|
|
11,389
|
1,082
|
12,471
|
|
Net
profit
|
54,011
|
7,111
|
61,122
|
|
8,216
|
1,082
|
9,298
|
|
EPS-Basic
|
2.96
|
|
3.35
|
|
0.45
|
|
0.51
|
|
EPS-Diluted
|
2.96
|
|
3.35
|
|
0.45
|
|
0.51
|
|
|
|
|
|
|
|
|
|
|
|
(1) Share-based compensation.
* There were no similar Non-GAAP adjustments for the
first quarter ended March 31,
2010 and the fourth quarter ended December 31, 2010. Therefore, there
was no reconciliation between the GAAP financial
measures and the Non-GAAP financial measures for these two
periods.
|
|
CHINA
CERAMICS CO., LTD. AND ITS SUBSIDIARIES
|
|
UNAUDITED
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(RMB in
thousands)
|
|
|
|
|
Three months
ended
|
|
|
March
|
December
|
March
|
|
|
31
|
31
|
31
|
|
|
2011
|
2010
|
2010
|
|
|
|
|
|
|
Cash flows
from operating activities
|
|
|
|
|
Profit before
taxation
|
74,868
|
82,056
|
60,541
|
|
Adjustments for
|
|
|
|
|
Amortization of land use
rights
|
167
|
167
|
166
|
|
Depreciation of property, plant
and equipment
|
8,818
|
8,528
|
6,574
|
|
Loss/(gain) on
disposal of property, plant and equipment
|
103
|
(128)
|
-
|
|
Share-based
compensation
|
7,111
|
-
|
-
|
|
Finance costs
|
1,873
|
1,544
|
1,433
|
|
Interest income
|
(222)
|
(93)
|
(105)
|
|
Operating profit before
working capital changes
|
92,718
|
92,074
|
68,609
|
|
Increase in
inventories
|
(36,625)
|
(26,995)
|
(18,214)
|
|
(Increase)/decrease in
trade receivables
|
(57,733)
|
82,141
|
(12,646)
|
|
Increase in other receivables
and prepayments
|
(8,774)
|
(8,069)
|
(1,692)
|
|
Increase in trade
payables
|
27,999
|
20,582
|
16,296
|
|
Decrease in accrued
liabilities and other payables
|
(6,016)
|
(44,623)
|
(19,752)
|
|
Cash generated from
operations
|
11,569
|
115,110
|
32,601
|
|
Interest paid
|
(1,873)
|
(1,544)
|
(1,433)
|
|
Income tax paid
|
(24,902)
|
(23,014)
|
(16,505)
|
|
|
|
|
|
|
Net
cash (used
in)/generated from operating
activities
|
(15,206)
|
90,552
|
14,663
|
|
|
|
|
|
|
Cash flows
from investing activities
|
|
|
|
|
Proceed from disposal of
property, plant and equipment
|
708
|
936
|
-
|
|
Acquisition of property, plant
and equipment
|
(164,241)
|
(26,441)
|
(226)
|
|
Interest received
|
222
|
93
|
105
|
|
Acquisition of subsidiary, net
of cash acquired
|
-
|
-
|
(36,311)
|
|
|
|
|
|
|
Net cash
used in investing activities
|
(163,311)
|
(25,412)
|
(36,432)
|
|
|
|
|
|
|
Cash flows
from financing activities
|
|
|
|
|
Bank borrowings
obtained
|
-
|
-
|
8,000
|
|
Repayment of short-term
loans
|
-
|
(2,700)
|
(4,500)
|
|
Proceeds from issuance of
ordinary shares
|
-
|
159,551
|
-
|
|
|
|
|
|
|
Net cash
generated from financing activities
|
-
|
156,851
|
3,500
|
|
|
|
|
|
|
Net
increase(decrease) in cash and cash equivalents
|
(178,517)
|
221,991
|
(18,269)
|
|
Cash and cash equivalents,
beginning of period
|
263,495
|
41,478
|
150,121
|
|
Effect of foreign exchange
rate differences
|
(55)
|
26
|
8
|
|
|
|
|
|
|
Cash and
cash equivalents, end of period
|
84,923
|
263,495
|
131,860
|
|
|
|
|
|
|
|
|
|
CHINA
CERAMICS CO., LTD. AND ITS SUBSIDIARIES
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF
FINANCIAL POSITION
|
|
(U.S.
Dollar in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
As at
March 31, 2011
|
|
As
at
December 31,
2010
|
|
|
|
|
|
|
ASSETS AND
LIABILITIES
|
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Property, plant and
equipment
|
92,134
|
|
69,570
|
|
Land use rights
|
4,851
|
|
4,839
|
|
Goodwill
|
570
|
|
566
|
|
|
97,555
|
|
74,975
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
Inventories
|
32,656
|
|
26,851
|
|
Trade receivables
|
52,030
|
|
42,875
|
|
Prepayments and other
receivables
|
3,464
|
|
1,350
|
|
Cash and bank
balances
|
12,969
|
|
39,923
|
|
|
101,119
|
|
110,999
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Trade payables
|
31,517
|
|
27,028
|
|
Accrued liabilities and other
payables
|
5,290
|
|
6,986
|
|
Interest-bearing bank
borrowings
|
10,995
|
|
10,909
|
|
Income tax payable
|
2,831
|
|
3,421
|
|
|
50,633
|
|
48,344
|
|
Non-current
liabilities
|
|
|
|
|
Long term borrowings
|
3,818
|
|
3,788
|
|
Deferred tax
liabilities
|
170
|
|
170
|
|
|
3,988
|
|
3,958
|
|
|
|
|
|
|
Net current
assets
|
50,486
|
|
62,655
|
|
|
|
|
|
|
Net assets
|
144,053
|
|
133,672
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Total
shareholders' equity
|
144,053
|
|
133,672
|
|
|
|
|
|
|
|
|
|
CHINA
CERAMICS CO., LTD. AND ITS SUBSIDIARIES
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
|
|
(U.S.
Dollar in thousands, except EPS
and share data)
|
|
|
|
|
Three months
ended
|
|
|
March
|
December
|
March
|
|
|
31
|
31
|
31
|
|
|
2011
|
2010
|
2010
|
|
|
|
|
|
|
Revenue
|
46,830
|
42,474
|
33,515
|
|
Cost of Sales
|
(32,332)
|
(28,284)
|
(23,379)
|
|
Gross profit
|
14,498
|
14,190
|
10,136
|
|
Selling and distribution
expenses
|
(385)
|
(375)
|
(216)
|
|
Administrative
expenses
|
(2,376)
|
(1,011)
|
(846)
|
|
Finance costs
|
(285)
|
(240)
|
(219)
|
|
Other income
|
42
|
162
|
2
|
|
Other expenses
|
(105)
|
-
|
-
|
|
Profit before
taxation
|
11,389
|
12,726
|
8,857
|
|
Income tax expense
|
(3,173)
|
(3,339)
|
(2,237)
|
|
Net Profit for the
period
|
8,216
|
9,387
|
6,620
|
|
Attributable to:
|
|
|
|
|
Shareholders of the
Company
|
|
|
|
|
EPS-Basic
|
0.45
|
0.58
|
0.65
|
|
EPS-Diluted
|
0.45
|
0.58
|
0.65
|
|
Shares used in calculating basic
EPS
|
|
|
|
|
EPS-Basic
|
18,254,002
|
16,287,698
|
10,164,298
|
|
EPS-Diluted
|
18,254,002
|
16,287,698
|
10,164,298
|
|
|
|
|
|
|
|
|
|
CHINA
CERAMICS CO., LTD. AND ITS SUBSIDIARIES
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(U.S.
Dollar in
thousands)
|
|
|
|
|
Three months
ended
|
|
|
March
|
December
|
March
|
|
|
31
|
31
|
31
|
|
|
2011
|
2010
|
2010
|
|
Cash flows
from operating activities
|
|
|
|
|
Profit before
taxation
|
11,389
|
12,726
|
8,857
|
|
Adjustments for
|
|
|
|
|
Amortization of land use
rights
|
25
|
27
|
24
|
|
Depreciation of property, plant
and equipment
|
1,341
|
1,319
|
962
|
|
Loss/(gain)
on disposal of property, plant
and equipment
|
16
|
(20)
|
-
|
|
Share-based
compensation
|
1,082
|
-
|
-
|
|
Finance costs
|
285
|
240
|
210
|
|
Interest income
|
(34)
|
(14)
|
(15)
|
|
Operating profit before
working capital changes
|
14,104
|
14,278
|
10,038
|
|
Increase in
inventories
|
(5,571)
|
(4,076)
|
(2,664)
|
|
(Increase)/decrease in trade
receivables
|
(8,782)
|
12,023
|
(1,850)
|
|
Increase in other receivables
and prepayments
|
(1,335)
|
(1,195)
|
(248)
|
|
Increase in trade
payables
|
4,259
|
3,111
|
2,384
|
|
Decrease in
accrued liabilities and other payables
|
(915)
|
(6,613)
|
(2,889)
|
|
Cash generated from
operations
|
1,760
|
17,528
|
4,771
|
|
Interest paid
|
(285)
|
(240)
|
(210)
|
|
Income tax paid
|
(3,788)
|
(3,541)
|
(2,414)
|
|
|
|
|
|
|
Net
cash (used
in)/generated from operating
activities
|
(2,313)
|
13,747
|
2,147
|
|
|
|
|
|
|
Cash flows
from investing activities
|
|
|
|
|
Proceed from disposal of
property, plant and equipment
|
108
|
147
|
-
|
|
Acquisition of property, plant
and equipment
|
(24,983)
|
(4,381)
|
(33)
|
|
Interest received
|
34
|
14
|
15
|
|
Acquisition of subsidiary, net
of cash acquired
|
-
|
-
|
(5,318)
|
|
|
|
|
|
|
Net cash
used in investing activities
|
(24,841)
|
(4,220)
|
(5,336)
|
|
|
|
|
|
|
Cash flows
from financing activities
|
|
|
|
|
Bank borrowings
obtained
|
-
|
-
|
1,170
|
|
Repayment of short-term
loans
|
-
|
(537)
|
(658)
|
|
Proceeds from issuance of
ordinary shares
|
-
|
23,981
|
-
|
|
|
|
|
|
|
Net cash
generated from financing activities
|
-
|
23,444
|
512
|
|
|
|
|
|
|
Net
increase(decrease) in cash and cash equivalents
|
(27,154)
|
32,971
|
(2,677)
|
|
Cash and cash equivalents,
beginning of period
|
39,923
|
6,193
|
21,957
|
|
Effect of foreign exchange
rate differences
|
200
|
759
|
9
|
|
Cash and
cash equivalents, end of period
|
12,969
|
39,923
|
19,289
|
|
|
|
|
|
|
|
|
Contact
Information:
|
|
|
China Ceramics Co.,
Ltd.
|
CCG Investor Relations
Inc.
|
|
Edmund Hen, Chief
Financial Officer
|
David Rudnick, Account
Manager
|
|
Email: info@cceramics.com
|
Email:
david.rudnick@ccgir.com
|
|
|
Phone:
+1-646-626-7241
|
|
|
|
SOURCE China Ceramics Co., Ltd.