JINJIANG, China, May 14, 2012
/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,
2012.
First Quarter 2012 Highlights
- Revenue was RMB 372.3 million
(US$ 59.1 million), up 20.9% from the
first quarter of 2011;
- Gross profit was RMB 113.0
million (US$ 18.0 million), up
18.6% from the first quarter of 2011;
- Gross profit margin was 30.4%, down 60 basis points from the
first quarter of 2011;
- Net profit was RMB 71.7 million
(US$ 11.4 million), up 32.8% from the
first quarter of 2011;
- On a quarter-to-quarter sequential basis, revenue was down
8.0%, gross profit was down 18.9% and net profit was down
22.2%;
- Non-GAAP net profit, which excludes share-based compensation
expenses, was RMB 73.4 million
(US$ 11.7 million), up 20.1% from
RMB 61.1 million (US$ 9.3 million) in the first quarter of
2011;
- Earnings per fully diluted share were RMB 3.51 (US$
0.56).
"We are pleased to report strong first quarter revenues and
profits as the demand for our wide array of ceramic tile offerings
drove solid sales volume to begin the year 2012," said Mr.
Jiadong Huang, CEO of China
Ceramics. "Our annual production capacity of ceramic tiles is
currently 56 million square meters, which includes an additional
four million square million meters of newly productive capacity at
our Hengdali facility. As business conditions and market demand
dictate, we will plan to phase in an additional 16 million square
meters of capacity at Hengdali through the year which would
increase our annual production capacity to 72 million square meters
of ceramic tiles."
CEO Mr. Huang continued, "Our focus on Tier II and Tier III
cities in China helped us to
develop a leadership position in our industry as we continue to
capitalize upon China's economic
growth and urbanization trends. Going forward, we plan upon
widening our distribution capabilities and bolstering our direct
sales and marketing efforts to large property developers as a means
to effectively reach the market. We are confident that our
strong brand name recognition and wide spectrum of high quality
ceramic tile products will help us to retain our competitive
edge."
First Quarter 2012 Results
Revenue for the first quarter ended March 31, 2012 was RMB
372.3 million (US$ 59.1
million), up 20.9% from RMB 307.9
million (US$ 46.8 million)
from the first quarter ended March 31,
2011. The year-over-year increase in revenue was driven, in
part, by a 2.6% increase in the sales volume of ceramic tiles to
11.7 million square meters in the first quarter of 2012 from 11.4
million square meters in the first quarter of 2011. In addition,
the average selling price increased in the first quarter of 2012 to
RMB 31.8 per square meter compared to
RMB 26.9 per square meter in the
comparable quarter of 2011 due to a change in the sales mix, with
more sales coming from our new higher-priced rustic series of
ceramic tiles which is being produced from our new Hengdali
facility. The decrease in sales in the first quarter of 2012 as
compared to the fourth quarter of 2011 is primarily due to a 5.6%
decrease in the sales volume from 12.4 million square meters.
Gross profit for the first quarter ended March 31, 2012 was RMB
113.0 million (US$ 18.0
million), up 18.6% from RMB 95.3
million (US$ 14.5 million) for
the first quarter ended March 31,
2011. The year-over-year increase in gross profit was mostly
driven by the change of sales mix, with more sales coming from high
margin rustic series of ceramic tiles. Gross profit margin was
30.4% for the first quarter ended March 31,
2012 compared to 31.0% for the same period of 2011. The
year-over-year decrease in gross profit margin was driven by
increased material cost and labor cost.
Administrative expenses for the first quarter ended
March 31, 2012 were RMB 9.6 million (US$ 1.5
million), down 38.5% from RMB 15.6
million (US$ 2.4 million) in
the first quarter of 2011. The year-over-year decrease in
administrative expenses was primarily due to a reduction to
RMB 1.8 million (US$ 0.3 million) of non-cash share-based
compensation expenses related to the 2010 Incentive Compensation
Plan, which is designed to retain directors and senior management.
The comparable non-cash share-based expenses were RMB 7.1 million (US$ 1.1
million) in the same period in 2011. It is expected that
additional non-cash share-based compensation expenses of
approximately RMB 6.4 million
(US$ 1.0 million) will be incurred
from April 2012 to January 2014. Of the amount of administrative
expenses for the first quarter ended March
31, 2012, RMB 1.0 million
(US$ 0.2 million) related to
provision for inventory. Excluding the non-cash share-based
expenses and loss from asset devaluation, the administrative
expenses for the first quarter ended March
31, 2012 was flat as compared with the expenses for the same
period in 2011.
Profit before taxation for the first quarter ended
March 31, 2012 was RMB 96.6 million (US$ 15.4
million), up 29.0% from RMB 74.9
million (US$ 11.4 million) in
the first quarter of 2011. The year-over-year increase in profit
before taxation was the result of higher gross profit as well as
lower administrative expenses.
Net profit for the first quarter ended March 31, 2012 was RMB
71.7 million (US$ 11.4
million), up 32.8% from RMB 54.0
million (US$ 8.2 million) in
the same period of 2011. The year-over-year increase in net profit
was the result of higher gross profit as well as the aforementioned
lower administrative expenses.
Earnings per fully diluted share were RMB 3.51 (US$ 0.56)
for the first quarter ended March 31,
2012, up 18.6% from RMB 2.96
(US$ 0.45) over the same period in
2011. Earnings per fully diluted share in the first quarter of 2012
were computed using 20.4 million shares while net earnings per
fully diluted share in the first quarter of 2011 were computed
using 18.3 million shares.
Non-GAAP profit before taxation, which excludes
share-based compensation expenses, was RMB
98.4 million (US$ 15.6
million) in the first quarter ended March 31, 2012, up 20.0% from RMB 82.0 million (US$ 12.5
million) in 2011.
Non-GAAP net profit, which excludes share-based
compensation expenses, was RMB 73.4
million (US$ 11.7 million) in
the first quarter ended March 31,
2012, an increase of 20.1% from RMB
61.1 million (US$ 9.3 million)
in the first quarter of 2011.
Non-GAAP earnings per fully diluted share, which excludes
share-based compensation expenses, was RMB
3.59 (US$ 0.57) in the first
quarter ended March 31, 2012, up 7.2%
from RMB 3.35 (US$ 0.51) in the same period of 2011.
First Quarter 2012 Statements of Selected Financial Position
Items
- Cash and bank balances were RMB 76.1
million (US$ 12.1 million) as
of March 31, 2012, compared with
RMB 42.1 million (US$ 6.7 million) as of December 31, 2011. The increase in cash and bank
balances was the result of sustained revenues and no capital
expenditures during the quarter ended March
31, 2012.
- Inventory turnover was 109 days as of March 31, 2012 compared with 84 days as of
December 31, 2011. The increase in
inventory turnover reflects the normal pattern of introducing a new
series of temporarily slower moving ceramic tiles into the market
for developers to test and adopt while thereafter such new series
are produced according to actual customer orders.
- Trade receivables turnover was 110 days as of March 31, 2012 compared with 93 days as of
December 31, 2011. 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 94 days as of March 31, 2012 compared with 79 days as of
December 31, 2011. The average
turnover days were within the Company's normal collection
period.
- Trade payables turnover was 87 days as of March 31, 2012 compared with 77 days as of
December 31, 2011. The average
turnover days were within the Company's normal credit period.
Liquidity and Capital Resources
Cash flow generated from operating activities was
RMB 73.8 million (US$ 11.7 million) for the quarter ended
March 31, 2012, compared to
RMB 15.2 million (US$ 2.3 million) of cash flow used in operating
activities for the same period of 2011. The year-over-year increase
of RMB 89.0 million (US$ 14.0 million) was mainly due to the increase
in revenue and the change in the Company's method of settling the
sales rebates with its distributors, primarily offset by an
increase in inventory and income tax. The Company now issues
rebates at the time of sale and settles rebates quarterly.
Historically, the Company had issued rebates at the time of
collection of its accounts receivable and settled rebates annually.
The Company settled annual rebate of year 2010 and adopted new
settlement in the first quarter of 2011, which caused an increase
in cash flow of approximately RMB 45.0
million (US$ 6.6 million) in
the first quarter of 2012 compared to the same quarter in 2011.
Cash flow generated from investing activities in the
quarter ended March 31, 2012 was
RMB 0.1 million (US$ 0.02 million) due from interest received,
compared to RMB 163.3 million
(US$ 24.8 million) of cash flow used
in investing activities in the same period of 2011, which was
primarily due to the acquisition of property, plant and
equipment.
Cash flow used in financing activities was RMB 40.0 million (US$ 6.4
million) due to the repayment of bank borrowings for the
quarter ended March 31, 2012, as
compared to nil for the same period of 2011.
Plant Expansion and Capital Expenditures Update
The Hengda facility has an annual production capacity of 42
million square meters of ceramic tiles. The facility was enhanced
in 2011 to replace manufacturing production line equipment. The
Company does not expect to add any additional production capacity
to the Hengda facility and anticipates that the capital
expenditures related to the facility in 2012 will be minimal.
The Company is currently expanding the production capacity of
the Hengdali facility from its current 14 million square meters per
year of ceramic tiles to 30 million square meters per year of
ceramic tiles, which is expected to be completed later of 2012.
Four million square meters of annual capacity were added in the
fourth quarter of 2011 that had been planned for 2012 and is now
fully operational and producing ceramic tiles for sale. The Company
plans on bringing online additional capacity at Hengdali as
determined by market demand. The Company expects that the power
supply from the local power supply authority will enable ramp-up of
any new capacity by the end of the second quarter of 2012.
After the completion of Phase II at Hengdali, together with the
current capacity of the Hengda facility, China Ceramics would have
a total annual production capacity of approximately 72 million
square meters of ceramic tiles in 2012. The Company anticipates
that a further capacity expansion of Phase III at Hengdali would
provide an additional 14 million square meters of ceramic tiles in
2013.
The Company's expected capital expenditures for 2012 will be
about US$38 million, the majority of
which will be associated with the Phase II expansion of the
Hengdali facility. This amount is subject to change as Management
regularly reviews the levels of capital expenditures throughout the
year and may adjust its capital expenditures subject to market
conditions. The Company's capital expenditures were nil in the
first quarter of 2012 and Management currently estimates that the
vast majority of capital expenditures will occur in the second half
of the year pending its review of the business outlook at that
time.
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 Hengdali facility.
Business Outlook
China Ceramics has experienced strong year-to-year sales
comparisons over the last two years due to its strong brand name,
operating effectiveness and the successful execution of its
capacity expansion plan. The Company's production capacity
increased to 56 million square meters in 2011 from 38 million
square meters in December of 2010. In 2012, the Company deems it
possible that it will increase its annual capacity from its current
56 million square meters to a total of 72 million square meters of
production capacity depending on the business outlook and as
determined by market demand. We note that the Company's
year-to-year comparisons going forward may be somewhat less than
that experienced in past periods due to the Company's previously
more rapid capacity expansion. However, though there is likely to
be fluctuations from time to time, the Company expects to maintain
strong gross margins as its customers are continuing to transition
from lower margin ceramic tile products to higher margin, more
advanced and better performing ceramic tiles.
While capacity has increased significantly, the utilization of
capacity for the Company's facilities is currently 95.7%, which
signifies continued healthy customer demand. In addition to plant
capacity, the pricing of the Company's products is the other key
factor in assessing revenues. The Company's average selling prices
of its products has risen over time, though the effects of
seasonality have resulted in somewhat flatter sequential
quarter-to-quarter results.
The Company's backlog of orders for delivery in the second
quarter of 2012 is approximately RMB 440.6
million (US$ 70.0 million),
representing a year-over-year growth rate of 18.3% compared to the
second quarter of 2011. This year-over-year growth rate is lower
than that of previous quarters, reflective of the impact of
somewhat slower customer demand. The Company estimates that its
sales volume of ceramic tiles in the second quarter of 2012 will be
approximately 12.9 million square meters.
The sales volume in the first quarter of 2012 represents a
slight decrease from that of the fourth quarter of 2011 and is
attributable to the seasonality of the Company's business and is
consistent with the trend of past years.
China Ceramics' new production capacity enables the Company to
more efficiently produce medium to high-end ceramic tile products
implement tight operations management so as to offer an optimal
product mix for sale to its end-users. The Company continues to
effectively capitalize upon its research and development efforts
and have introduced large-sized tiles into the market that have
experienced excellent market receptivity and have high margin
profit potential.
The Company continues to monitor the macroeconomic environment
in China in terms of general
business activity and domestic infrastructure investment such as
that occurring in the real estate sector. As indicated, the Company
will expand its production capacity further subject to market
conditions. The Company continues to focus on Tier II and Tier III
cities and is intent upon both strengthening its distribution
network and engaging in more active direct sales with large
developers. The Company believes that its new Hengdali production
facility in Gaoan will better position it to expand into new
markets and reach additional end use customers abetted by the
reduction in delivery transportation and logistical costs.
2012 Recognition and Award
On March 13, 2012, the Company was
certified by Fujian Municipal as one of the Top 100 2012-2013
Leading Enterprises.
Conference Call Information
The Company will host a conference call at 8:00 am ET on Monday, May
14, 2012. 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 78152965. A replay of the
conference call will be available for 14 days starting from
11:00 pm ET on May 14, 2012. To access the replay, dial +1 (855)
859-2056. International callers should dial +1 (404) 537-3406. The
pass code is 78152965 for the replay.
Annual Shareholders Meeting
The Board of Directors has authorized the Annual Shareholders
Meeting (ASM) to be held on May 16,
2012, at the offices of Loeb & Loeb, 345 Park Avenue,
NY, NY 10154, commencing at 9:15am,
EDT. The Record Date for determining shareholders who will
be able to vote at the ASM is April 6,
2012.
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 "Pottery Capital of Tang
Dynasty" brands, are available in over 2,000 style, color and size
combinations and are distributed through a network of exclusive
distributors as well as 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 Renminbi
("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, 2011 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.
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:
+1-646-626-4172
|
FINANCIAL TABLES FOLLOW
CHINA CERAMICS CO.,
LTD. AND ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
(RMB in
thousands)
|
|
|
|
|
|
|
|
As at
March 31,
2012
|
|
As at
December 31,
2011
|
|
|
(Unaudited)
|
|
|
ASSETS AND
LIABILITIES
|
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Property, plant and
equipment
|
|
826,982
|
|
843,429
|
Land use
rights
|
|
31,100
|
|
31,267
|
Goodwill
|
|
3,735
|
|
3,735
|
|
|
861,817
|
|
878,431
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Inventories
|
|
333,610
|
|
291,781
|
Trade
receivables
|
|
438,677
|
|
473,209
|
Prepayments and other
receivables
|
|
19,559
|
|
26,377
|
Cash and bank
balances
|
|
76,091
|
|
42,149
|
|
|
867,937
|
|
833,516
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Trade
payables
|
|
246,509
|
|
252,682
|
Accrued liabilities and
other payables
|
|
47,275
|
|
44,349
|
Interest-bearing bank
borrowings
|
|
85,000
|
|
125,000
|
Income tax
payable
|
|
22,724
|
|
35,090
|
|
|
401,508
|
|
457,121
|
Non-current
liabilities
|
|
|
|
|
Long term
borrowings
|
|
60,000
|
|
60,000
|
Deferred tax
liabilities
|
|
1,078
|
|
1,087
|
|
|
61,078
|
|
61,087
|
|
|
|
|
|
Net current
assets
|
|
466,429
|
|
376,395
|
|
|
|
|
|
Net
assets
|
|
1,267,168
|
|
1,193,739
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Total shareholders'
equity
|
|
1,267,168
|
|
1,193,739
|
CHINA CERAMICS CO.,
LTD. AND ITS SUBSIDIARIES
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
(RMB in thousands,
except EPS and share data)
|
|
|
Three months
ended
|
|
March
31
|
December
31
|
March
31
|
|
2012
|
2011
|
2011
|
|
|
|
|
Revenue
|
372,288
|
404,452
|
307,865
|
Cost of Sales
|
(259,280)
|
(265,102)
|
(212,554)
|
Gross profit
|
113,008
|
139,350
|
95,311
|
Selling and distribution
expenses
|
(2,962)
|
(3,093)
|
(2,534)
|
Administrative
expenses
|
(9,593)
|
(12,199)
|
(15,620)
|
Finance costs
|
(3,570)
|
(3,771)
|
(1,873)
|
Other
income/(expenses)
|
(246)
|
5,148
|
(416)
|
Profit before
taxation
|
96,637
|
125,435
|
74,868
|
Income tax
expense
|
(24,966)
|
(33,265)
|
(20,857)
|
Net Profit for the
period
|
71,671
|
92,170
|
54,011
|
Attributable
to:
Shareholders of the
Company
|
|
|
|
EPS-Basic
|
3.51
|
4.51
|
2.96
|
EPS-Diluted
|
3.51
|
4.51
|
2.96
|
Shares used in
calculating basic EPS
|
|
|
|
Basic
|
20,430,838
|
20,430,838
|
18,254,002
|
Diluted
|
20,430,838
|
20,430,838
|
18,254,002
|
CHINA CERAMICS CO.,
LTD. AND ITS SUBSIDIARIES
|
SALES VOLUME AND
AVERAGE SELLING PRICE
|
|
Three months
ended
|
|
March
31
|
December
31
|
March
31
|
|
2012
|
2011
|
2011
|
|
|
|
|
Sales volume (square
meters)
|
11,719,104
|
12,355,462
|
11,429,245
|
Average Selling Price
(in RMB/square meter)
|
31.8
|
32.7
|
26.9
|
Average Selling Price
(in USD/square meter)
|
5.0
|
5.2
|
4.1
|
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
|
|
2012
|
2011
|
2011
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
Profit before
taxation
|
96,637
|
125,435
|
74,868
|
Adjustments
for
|
|
|
|
Amortization of land use
rights
|
167
|
167
|
167
|
Depreciation of property,
plant and equipment
|
16,448
|
15,022
|
8,818
|
Loss on disposal of property,
plant and equipment
|
-
|
-
|
103
|
Share-based
compensation
|
1,761
|
5,376
|
7,111
|
Finance costs
|
3,570
|
3,771
|
1,873
|
Interest income
|
(103)
|
(63)
|
(222)
|
Operating profit before
working capital changes
|
118,480
|
149,708
|
92,718
|
Increase in
inventories
|
(41,829)
|
(35,304)
|
(36,625)
|
(Increase)/decrease in trade
receivables
|
34,532
|
2,904
|
(57,733)
|
(Increase)/decrease in other
receivables and prepayments
|
6,818
|
(10,943)
|
(8,774)
|
Increase/(decrease) in trade
payables
|
(6,173)
|
(6,957)
|
27,999
|
Increase/(decrease) in accrued
liabilities and other payables
|
2,940
|
(2,041)
|
(6,016)
|
Cash generated from
operations
|
114,768
|
97,367
|
11,569
|
Interest paid
|
(3,586)
|
(3,771)
|
(1,873)
|
Income tax paid
|
(37,340)
|
(26,258)
|
(24,902)
|
|
|
|
|
Net cash generated
from/(used in) operating activities
|
73,842
|
67,338
|
(15,206)
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Proceed from disposal of
property, plant and equipment
|
-
|
-
|
708
|
Acquisition of property, plant
and equipment
|
-
|
(63,760)
|
(164,241)
|
Interest received
|
103
|
63
|
222
|
|
|
|
|
Net cash generated
from/(used in) investing activities
|
103
|
(63,697)
|
(163,311)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Bank borrowings
obtained
|
-
|
33,000
|
-
|
Repayment of short-term
loans
|
(40,000)
|
(43,000)
|
-
|
|
|
|
|
Net cash used in
financing activities
|
(40,000)
|
(10,000)
|
-
|
|
|
|
|
Net
increase/(decrease) in cash and cash equivalents
|
33,945
|
(6,359)
|
(178,517)
|
Cash and cash equivalents,
beginning of period
|
42,149
|
48,545
|
263,495
|
Effect of foreign exchange
rate differences
|
(3)
|
(37)
|
(55)
|
|
|
|
|
Cash and cash
equivalents, end of period
|
76,091
|
42,149
|
84,923
|
CHINA CERAMICS CO.,
LTD. AND ITS SUBSIDIARIES
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
(U.S Dollar in
thousands)
|
|
|
|
|
|
|
|
|
|
As at
March 31,
2012
|
|
As at
December 31,
2011
|
|
|
|
|
ASSETS AND
LIABILITIES
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
Property, plant and
equipment
|
131,319
|
|
134,007
|
Land use
rights
|
4,938
|
|
4,968
|
Goodwill
|
593
|
|
593
|
|
136,850
|
|
139,568
|
|
|
|
|
Current
assets
|
|
|
|
Inventories
|
52,975
|
|
46,359
|
Trade
receivables
|
69,659
|
|
75,185
|
Prepayments and other
receivables
|
3,106
|
|
4,191
|
Cash and bank
balances
|
12,083
|
|
6,697
|
|
137,823
|
|
132,432
|
|
|
|
|
Current
liabilities
|
|
|
|
Trade
payables
|
39,144
|
|
40,147
|
Accrued liabilities and
other payables
|
7,507
|
|
7,047
|
Interest-bearing bank
borrowings
|
13,497
|
|
19,860
|
Income tax
payable
|
3,608
|
|
5,575
|
|
63,756
|
|
72,629
|
Non-current
liabilities
|
|
|
|
Long term
borrowings
|
9,528
|
|
9,533
|
Deferred tax
liabilities
|
171
|
|
173
|
|
9,699
|
|
9,706
|
|
|
|
|
Net current
assets
|
74,067
|
|
59,803
|
|
|
|
|
Net
assets
|
201,218
|
|
189,665
|
|
|
|
|
EQUITY
|
|
|
|
Total shareholders'
equity
|
201,218
|
|
189,665
|
CHINA CERAMICS CO.,
LTD. AND ITS SUBSIDIARIES
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
(U.S Dollar in
thousands, except EPS and share data)
|
|
|
Three months
ended
|
|
March
31
|
December
31
|
March
31
|
|
2012
|
2011
|
2011
|
|
|
|
|
Revenue
|
59,134
|
63,828
|
46,830
|
Cost of Sales
|
(41,184)
|
(41,884)
|
(32,332)
|
Gross profit
|
17,950
|
21,944
|
14,498
|
Selling and distribution
expenses
|
(470)
|
(488)
|
(385)
|
Administrative
expenses
|
(1,523)
|
(1,926)
|
(2,376)
|
Finance costs
|
(567)
|
(593)
|
(285)
|
Other
income/(expenses)
|
(39)
|
796
|
(63)
|
Profit before
taxation
|
15,351
|
19,733
|
11,389
|
Income tax
expense
|
(3,966)
|
(5,233)
|
(3,173)
|
Net Profit for the
period
|
11,385
|
14,500
|
8,216
|
Attributable
to:
Shareholders of the
Company
|
|
|
|
EPS-Basic
|
0.56
|
0.71
|
0.45
|
EPS-Diluted
|
0.56
|
0.71
|
0.45
|
Shares used in
calculating basic EPS
|
|
|
|
Basic
|
20,430,838
|
20,430,838
|
18,254,002
|
Diluted
|
20,430,838
|
20,430,838
|
18,254,002
|
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
|
|
2012
|
2011
|
2011
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
Profit before
taxation
|
15,351
|
19,733
|
11,389
|
Adjustments
for
|
|
|
|
Amortization of land use
rights
|
27
|
27
|
25
|
Depreciation of property,
plant and equipment
|
2,613
|
2,364
|
1,341
|
Lose on disposal of property,
plant and equipment
|
-
|
-
|
16
|
Share-based
compensation
|
280
|
846
|
1,082
|
Finance costs
|
567
|
593
|
285
|
Interest income
|
(16)
|
(11)
|
(34)
|
Operating profit before
working capital Changes
|
18,822
|
23,552
|
14,104
|
Decrease in
inventories
|
(6,644)
|
(5,555)
|
(5,571)
|
(Increase)/decrease in trade
receivables
|
5,485
|
257
|
(8,782)
|
(Increase)/decrease in other
receivables and prepayments
|
1,083
|
(1,704)
|
(1,335)
|
Increase/(decrease) in trade
payables
|
(981)
|
(997)
|
4,259
|
Increase/(decrease) in accrued
liabilities and other payables
|
467
|
(316)
|
(915)
|
Cash generated from
operations
|
18,232
|
15,237
|
1,760
|
Interest paid
|
(570)
|
(593)
|
(285)
|
Income tax paid
|
(5,931)
|
(4,140)
|
(3,788)
|
|
|
|
|
Net cash generated
from/(used in) operating activities
|
11,731
|
10,504
|
(2,313)
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Proceed from disposal of
property, plant and equipment
|
-
|
-
|
108
|
Acquisition of property, plant
and Equipment
|
-
|
(10,269)
|
(24,983)
|
Interest received
|
16
|
11
|
34
|
|
|
|
|
Net cash generated
from/(used in) investing activities
|
16
|
(10,258)
|
(24,841)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Bank borrowings
obtained
|
-
|
5,259
|
-
|
Repayment of short-term
loans
|
(6,354)
|
(6,713)
|
-
|
|
|
|
|
Net cash used in
financing activities
|
(6,354)
|
(1,454)
|
-
|
|
|
|
|
Net
increase/(decrease) in cash and cash equivalents
|
5,393
|
(1,208)
|
(27,154)
|
Cash and cash
equivalents, beginning of period
|
6,697
|
7,611
|
39,923
|
Effect of foreign
exchange rate differences
|
(7)
|
294
|
200
|
|
|
|
|
Cash and cash
equivalents, end of period
|
12,083
|
6,697
|
12,969
|
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 2012,
including Non-GAAP profit before taxation, Non-GAAP net income and
Non-GAAP earnings per fully diluted shares, all of which exclude
the share-based compensation expenses from their comparable IFRS
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 share-based
compensation expenses incurred for the stock option program.
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 below. 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, 2012
|
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
RMB'000
|
RMB'000
|
RMB'000
|
|
USD'000
|
USD'000
|
USD'000
|
Profit before
taxation
|
96,637
|
1,761
|
98,398
|
|
15,351
|
280
|
15,631
|
Net profit
|
71,671
|
1,761
|
73,432
|
|
11,385
|
280
|
11,665
|
EPS-Basic
|
3.51
|
|
3.59
|
|
0.56
|
|
0.57
|
EPS-Diluted
|
3.51
|
|
3.59
|
|
0.56
|
|
0.57
|
CHINA CERAMICS CO.,
LTD.
|
Unaudited
Reconciliation of GAAP to Non-GAAP
|
Three months ended
December 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
|
125,435
|
5,376
|
130,811
|
|
19,733
|
846
|
20,579
|
Net profit
|
92,170
|
5,376
|
97,546
|
|
14,500
|
846
|
15,346
|
EPS-Basic
|
4.51
|
|
4.77
|
|
0.71
|
|
0.75
|
EPS-Diluted
|
4.51
|
|
4.77
|
|
0.71
|
|
0.75
|
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.
|
SOURCE China Ceramics Co., Ltd.