JINJIANG, China, Aug. 10, 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 second quarter ended June 30, 2011.
Second Quarter 2011 Highlights
- Revenue was RMB 372.3 million
(US$ 57.3 million), up 36.7% from the
second quarter of 2010;
- Gross profit was RMB 113.4
million (US$ 17.5 million), up
33.7% from the second quarter of 2010;
- Gross profit margin was 30.5%, down 69 basis points from the
second quarter of 2010;
- Net profit was RMB 72.4 million
(US$ 11.1 million), up 28.1% from the
second quarter of 2010;
- On a quarter-to-quarter sequential basis, revenue was up 20.9%,
gross profit was up 19.0% and net profit was up 34.1%.
- Non-GAAP net profit, which excludes the current quarter's
share-based compensation expenses, was RMB
74.8 million (US$ 11.5
million), up 32.4% from RMB 56.5
million (US$ 8.3 million) in
the second quarter of 2010;
- Earnings per fully diluted share were RMB 3.97 (US$
0.61).
"We are pleased to report continued robust operating and
financial results for the second quarter of 2011, evidence of a
strengthening in the Company's competitive positioning due to its
strategic plan to expand our production capacity," said Mr.
Jiadong Huang, CEO of China
Ceramics. "By the end of 2011, the expansion of our Hengda and
Hengdali facilities to accommodate an annual production of 72
million square meters of ceramic tiles will solidify our market
position and provide for additional margin improvement. The
designation of Jinjiang Hengda Ceramics Co., Ltd., a subsidiary of
the Company, as one of China's 500
Most Valuable Brands by the World Brand Laboratory and the naming
of the Company as a preferential provider of building materials for
affordable housing by the China Building Materials Circulation
Association during the second quarter are further testimony to the
continued prominence of our name brand in China."
Second Quarter 2011 Results
Revenue for the second quarter ended June 30, 2011 was RMB
372.3 million (US$ 57.3
million), up 36.7% from RMB 272.3
million (US$ 39.8 million) for
the second quarter ended June 30,
2010. The year-over-year increase in revenue was primarily
driven by a 29.2% increase in the sales volume of ceramic tiles to
13.7 million square meters in the second quarter of 2011 from 10.6
million square meters in the second quarter of 2010. We were able
to increase our volume due to increased production capacity at both
the Jinjiang Plant ("Hengda") and the Gaoan Plant ("Hengdali"),
both of which operated at full capacity during the quarter. Hengda
also raised the selling price of its porcelain tile by 5% in
February 2011, which led to
RMB 7.8 million (US$ 1.2 million) of the increase in revenue.
Gross profit for the second quarter ended June 30, 2011 was RMB
113.4 million (US$ 17.5
million), up 33.7% from RMB 84.8
million (US$ 12.4 million) for
the second quarter ended June 30,
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 30.5% compared to 31.1% for the same period in
2010, and the slight decrease of gross profit margin was due to the
effect of increased material cost and labor cost.
Selling and distribution expenses were RMB 3.1 million (US$ 0.5
million), or 0.8% of sales, compared to RMB 1.5 million (US$ 0.2
million), or 0.6% of sales, in the second quarter of 2010.
The year-over-year increase in selling expenses was primarily due
to increased travel expenses of RMB 0.4
million (US$ 0.07 million) and
advertising expenses of RMB 0.7
million (US$ 0.1 million) for
promotion of our products.
Administrative expenses for the second quarter ended
June 30, 2011 were RMB 9.6 million (US$ 1.5
million), up 60.0% from RMB 6.0
million (US$ 0.9 million) in
the second quarter of 2010. The year-over-year increase in
administrative expenses was primarily due to RMB 2.4 million (US$ 0.4
million) of non-cash share-based compensation expenses
related to the 2010 Incentive Compensation Plan, which was designed
to retain directors and senior management. It is expected that
additional non-cash share-based compensation expenses of
approximately RMB 11.9 million
(US$ 1.8 million) will be incurred
from July 2011 to January 2014.
Profit before taxation for the
second quarter ended June 30, 2011
was RMB 97.9 million (US$ 15.1 million), up 28.6% from RMB 76.1 million (US$ 11.1
million) in the second quarter of 2010. The year-over-year
increase in profit from operations was the result of higher revenue
although offset by higher selling and administrative expenses.
Net profit for the second quarter ended June 30, 2011 was RMB 72.4
million (US$ 11.1 million), up
28.1% from RMB 56.5 million
(US$ 8.3 million) in the same period
of 2010. The year-over-year increase in net profit was the result
of higher revenue, but offset by higher selling and administrative
expenses.
Earnings per fully diluted share were RMB 3.97 (US$ 0.61)
for the second quarter ended June 30,
2011, down 28.5% from RMB 5.55
(US$ 0.81) over the same period in
2010. Earnings per fully diluted share in the second quarter of
2011 were computed using 18.3 million shares while net earnings per
fully diluted share in the second quarter of 2010 were computed
using 10.2 million shares.
Non-GAAP profit before taxation, which
excludes share-based compensation expenses, was RMB 100.3 million (US$
15.4 million) in the second quarter ended June 30, 2011, up 31.8% from RMB 76.1 million (US$ 11.1
million) in 2010 (for which period there was no non-GAAP
adjustment).
Non-GAAP net profit, which excludes share-based
compensation expenses, was RMB 74.8
million (US$ 11.5 million) in
the second quarter ended June 30,
2011, an increase of 32.4% from RMB
56.5 million (US$ 8.3 million)
in the second quarter of 2010 (for which period there was no
non-GAAP adjustment).
Non-GAAP earnings per fully diluted share, which excludes
share-based compensation expenses, was RMB
4.10 (US$ 0.63) in the second
quarter ended June 30, 2011, down
26.1% from RMB 5.55 (US$ 0.81) in the same period of 2010 (for which
period there was no non-GAAP adjustment).
Six Months 2011 Results
Revenue for the six months ended June 30,
2011 increased by 35.7% to RMB 680.2
million (US$ 104.1 million)
compared to the six months ended June 30,
2010. Gross profit was RMB 208.7
million (US$ 32.0 million), up
35.4% from RMB154.1 million
(US$ 22.5 million) in the six months
ended June 30, 2010. Gross margin was
30.7% compared to 30.7% in the same period of 2010. Selling
expenses were RMB 5.6 million
(US$ 0.9 million), compared to
RMB 3.0 million (US$ 0.4 million) in the same period of 2010.
Administrative expenses were RMB 25.2
million (US$ 3.9 million),
compared to RMB 11.8 million
(US$ 1.7 million) for the same period
of 2010. Net profit for the six months ended June 30, 2011 was RMB
126.4 million (US$ 19.4
million), up 24.3% from the same period of 2010. Non-GAAP
net profit, which excludes share-based compensation expenses, was
RMB 135.9 million (US$ 20.8 million) for the six months ended
June 30, 2011, an increase of 33.6%
from RMB 101.7 million (US$ 14.9 million) in the same period of 2010 (for
which period there was no non-GAAP adjustment). Earnings per fully
diluted share were RMB 6.93
(US$ 1.06) for the six months 2011
and RMB 7.45 (US$ 1.14) on a non-GAAP basis, down from
RMB 10.01 (US$
1.46) in the same period of 2010. Earnings per fully diluted
share for the first half of 2011 were computed using 18.3 million
shares while net earnings per fully diluted share for the first
half of 2010 were computed using 10.2 million shares.
Second Quarter 2011 Statements of
Selected Financial Position Items
- Cash and bank balances were RMB 51.6
million (US$ 8.0 million) as
of June 30, 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 at Hengdali during
the first half year of 2011.
- Inventory turnover was 83 days as of June 30, 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 third
quarter of 2011, which is usually the peak season of the year.
Also, since the prices of raw materials have been increasing, the
Company has stored up raw materials for production in the second
half of 2011.
- Trade receivables turnover was 95 days as of June 30, 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 81 days as of June
30, 2011 compared with 81 days as of December 31, 2010. The trade receivables turnover
was flat with the quarter ended December 31,
2010, due to the tight management control over trade
receivables collection.
- Trade payables turnover was 81 days as of June 30, 2011 compared with 76 days as of
December 31, 2010. The increase in
the trade payables turnover resulted from an increase in the
purchase of raw materials in preparation for the second half of
2011.
- Bank borrowings (including both short-term borrowings and
long-term borrowings) were RMB 137.0
million (US$ 21.2 million) as
of June 30, 2011 compared to
RMB 97.0 million (US$ 14.7 million) as of December 31, 2010. The increase in the bank
borrowing was to support the working capital and provide a better
cash cushion for the capital expenditures requirement.
Liquidity and Capital Resources
Cash flow generated from operating
activities was RMB 2.1 million
(US$ 0.3 million) for the quarter
ended June 30, 2011, compared to
RMB 32.4 million (US$ 4.7 million) of cash flow generated from
operating activities in the same period in 2010. The year-over-year
decrease of RMB 30.3 million
(US$ 4.4 million) was mainly due to
the increase in inventory purchases and the change in the Company's
method of settling sales rebates with its distributors. Since the
prices of raw materials have been increasing, the Company has
stored up raw materials for production in the second half of 2011,
resulting in an additional cash outflow of RMB 9.2 million (US$ 1.4
million) in the second quarter of 2011. Furthermore, the
cash from operations was reduced due to a change in settling
rebates to its distributors. The Company now issues rebates at time
of sale. Historically, the Company had issued rebates at time of
collection of accounts receivable. This change of deducting the
sales rebates directly from the accounts receivable as opposed to
collecting the full amount and later remitting the sales rebates,
caused a decrease in cash flow of approximately RMB 23.1 million (US$ 3.6
million) in the second quarter of 2011 compared to the same
quarter in 2010.
Cash flow used in investing
activities in the quarter ended June 30,
2011 was RMB 75.3 million
(US$ 11.7 million), compared to
RMB 104.2 million (US$ 15.2 million) of cash flow used in investing
activities in the same period of 2010. The decrease was mainly due
to a decrease in the acquisition of property, plant and equipment.
The capital expenditures related to Hengdali facility was nil for
the quarter ended June 30, 2011, as
compared to RMB 73.3 million
(US$ 10.7 million) in the same period
of 2010 due to expenditures for facility expansion. The company had
paid RMB 129.1 million ($19.6 million) related to the Hengdali facility
in the first quarter of 2011, and the final payment will be made
upon completion of the facility.
Cash flow generated from financing activities was
RMB 40.0 million (US$ 6.1 million) obtained from bank borrowings
for the quarter ended June 30, 2011,
as compared to RMB 7.9 million
(US$ 1.2 million) in the same period
of 2010.
Recent Developments
During the quarter, the Company's subsidiary, Jinjiang Hengda
Ceramics Co., Ltd., was designated one of China's 500 Most Valuable Brands by the World
Brand Laboratory.
Business Outlook
The Company's backlog of orders for delivery in the third
quarter of 2011 is approximately RMB 400.2
million (US$ 61.9 million),
representing a year-over-year growth rate of 36.1% compared to the
third quarter of 2010. The Company estimates that its sales volume
of ceramic tiles in the third quarter of 2011 will be approximately
14.6 million square meters.
Plant Expansion and Capital Expenditures
Update
For the second quarter ended June 30,
2011, total capital expenditures for the Company were
approximately RMB 80.2 million
(US$ 12.4 million), which related to
the Hengda facility. For the six months ended June 30, 2011, total capital expenditures for the
Company were approximately RMB 244.5
million (US$ 37.4 million). Of
this amount, approximately RMB 129.1
million (US$ 19.6 million)
related to the Hengdali facility and RMB
115.4 million (US$ 17.8
million) related to Hengda facility. Total capital
expenditures for the fiscal year 2011 are planned to be an
estimated RMB 370 million
(US$ 57 million).
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
composed 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 current total capacity is 32 million
square meters from Hengda and 10 million square meters from
Hengdali.
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 8:00 am EDT on Wednesday,
August 10, 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 88040330. A
replay of the conference call will be available for 14 days
starting from 10:00 am ET on
Wednesday, August 10, 2011. To access
the replay, dial +1 (855) 859-2056. International callers should
dial +1 (404) 537-3406. The pass code is 88040330 for the replay.
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 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 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, 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
June 30, 2011
|
|
As at
December 31, 2010
|
|
|
|
(Unaudited)
|
|
|
|
ASSETS AND
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
Property, plant and
equipment
|
|
740,271
|
|
459,161
|
|
Land use rights
|
|
31,601
|
|
31,936
|
|
Goodwill
|
|
3,735
|
|
3,735
|
|
|
|
775,607
|
|
494,832
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
Inventories
|
|
255,539
|
|
177,217
|
|
Trade receivables
|
|
435,618
|
|
282,976
|
|
Prepayments and other
receivables
|
|
18,706
|
|
8,907
|
|
Cash and bank
balances
|
|
51,646
|
|
263,495
|
|
|
|
761,509
|
|
732,595
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Trade payables
|
|
246,011
|
|
178,382
|
|
Accrued liabilities and other
payables
|
|
107,681
|
|
46,108
|
|
Interest-bearing bank
borrowings
|
|
112,000
|
|
72,000
|
|
Income tax payable
|
|
27,276
|
|
22,576
|
|
|
|
492,968
|
|
319,066
|
|
Non-current
liabilities
|
|
|
|
|
|
Long term borrowings
|
|
25,000
|
|
25,000
|
|
Deferred tax
liabilities
|
|
1,104
|
|
1,122
|
|
|
|
26,104
|
|
26,122
|
|
|
|
|
|
|
|
Net current
assets
|
|
268,541
|
|
413,529
|
|
|
|
|
|
|
|
Net assets
|
|
1,018,044
|
|
882,239
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
Total
shareholders' equity
|
|
1,018,044
|
|
882,239
|
|
|
|
|
|
|
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
|
|
Six months ended
|
|
|
June 30
|
March 31
|
June 30
|
|
June 30
|
June 30
|
|
|
2011
|
2011
|
2010
|
|
2011
|
2010
|
|
|
|
|
|
|
|
|
|
Revenue
|
372,323
|
307,865
|
272,304
|
|
680,188
|
501,413
|
|
Cost of
Sales
|
(258,894)
|
(212,554)
|
(187,474)
|
|
(471,448)
|
(347,299)
|
|
Gross profit
|
113,429
|
95,311
|
84,830
|
|
208,740
|
154,114
|
|
Selling and distribution
expenses
|
(3,062)
|
(2,534)
|
(1,513)
|
|
(5,596)
|
(2,994)
|
|
Administrative
expenses
|
(9,570)
|
(15,620)
|
(5,976)
|
|
(25,190)
|
(11,758)
|
|
Finance costs
|
(2,297)
|
(1,873)
|
(1,478)
|
|
(4,170)
|
(2,974)
|
|
Other income
|
94
|
276
|
257
|
|
370
|
272
|
|
Other expenses
|
(740)
|
(692)
|
-
|
|
(1,432)
|
-
|
|
Profit before
taxation
|
97,854
|
74,868
|
76,120
|
|
172,722
|
136,660
|
|
Income tax
expense
|
(25,445)
|
(20,857)
|
(19,659)
|
|
(46,302)
|
(34,949)
|
|
Net Profit for
the period
|
72,409
|
54,011
|
56,461
|
|
126,420
|
101,711
|
|
Attributable
to:
Shareholders of
the Company
|
|
|
|
|
|
|
|
EPS-Basic
|
3.97
|
2.96
|
5.55
|
|
6.93
|
10.01
|
|
EPS-Diluted
|
3.97
|
2.96
|
5.55
|
|
6.93
|
10.01
|
|
Shares used in calculating
basic EPS
|
|
|
|
|
|
|
|
Basic
|
18,254,002
|
18,254,002
|
10,164,298
|
|
18,254,002
|
10,164,298
|
|
Diluted
|
18,254,002
|
18,254,002
|
10,164,298
|
|
18,254,002
|
10,164,298
|
|
|
|
|
|
|
|
|
CHINA
CERAMICS CO., LTD. AND ITS SUBSIDIARIES
|
|
UNAUDITED
SALES VOLUME AND AVERAGE SELLING
PRICE
|
|
|
Three months ended
|
|
Six months ended
|
|
|
June 30
|
March 31
|
June 30
|
|
June 30
|
June 30
|
|
|
2011
|
2011
|
2010
|
|
2011
|
2010
|
|
|
|
|
|
|
|
|
|
Sales volume (square
meters)
|
13,734,874
|
11,429,245
|
10,631,009
|
|
25,164,119
|
19,429,316
|
|
Average Selling Price (in
RMB/square meter)
|
27.1
|
26.9
|
25.6
|
|
27.0
|
25.8
|
|
Average Selling Price
(in USD/square
meter)
|
4.2
|
4.1
|
3.7
|
|
4.1
|
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 second 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 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 June 30,
2011
|
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
|
RMB'000
|
RMB'000
|
RMB'000
|
|
USD'000
|
USD'000
|
USD'000
|
|
Profit before
taxation
|
97,854
|
2,407
|
100,261
|
|
15,055
|
375
|
15,430
|
|
Net
profit
|
72,409
|
2,407
|
74,816
|
|
11,139
|
375
|
11,514
|
|
EPS-Basic
|
3.97
|
|
4.10
|
|
0.61
|
|
0.63
|
|
EPS-Diluted
|
3.97
|
|
4.10
|
|
0.61
|
|
0.63
|
|
|
|
|
|
|
|
|
|
CHINA
CERAMICS CO., LTD.
|
|
Unaudited
Reconciliation of GAAP to
Non-GAAP
|
|
Six months
ended June 30,
2011
|
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
|
RMB'000
|
RMB'000
|
RMB'000
|
|
USD'000
|
USD'000
|
USD'000
|
|
Profit before
taxation
|
172,722
|
9,518
|
182,240
|
|
26,444
|
1,457
|
27,901
|
|
Net
profit
|
126,420
|
9,518
|
135,938
|
|
19,355
|
1,457
|
20,812
|
|
EPS-Basic
|
6.93
|
|
7.45
|
|
1.06
|
|
1.14
|
|
EPS-Diluted
|
6.93
|
|
7.45
|
|
1.06
|
|
1.14
|
|
(1) Share-based
compensation.
* There were
no similar Non-GAAP adjustments for the
second quarter ended June 30,
2010 and the
six
months ended June
30,
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
|
|
Six months ended
|
|
|
June
|
March
|
June
|
|
June
|
June
|
|
|
30
|
31
|
30
|
|
30
|
30
|
|
|
2011
|
2011
|
2010
|
|
2011
|
2010
|
|
Cash flows
from operating activities
|
|
|
|
|
|
|
|
Profit before
taxation
|
97,854
|
74,868
|
76,120
|
|
172,722
|
136,660
|
|
Adjustments for
|
|
|
|
|
|
|
|
Amortization of land use
rights
|
168
|
167
|
167
|
|
335
|
333
|
|
Depreciation of property,
plant
and equipment
|
11,309
|
8,818
|
6,911
|
|
20,127
|
13,485
|
|
Lose/(gain) on disposal of
property,
plant and equipment
|
739
|
103
|
(138)
|
|
842
|
(138)
|
|
Share-based
compensation
|
2,407
|
7,111
|
-
|
|
9,518
|
-
|
|
Finance costs
|
2,297
|
1,873
|
1,541
|
|
4,170
|
2,974
|
|
Interest income
|
(113)
|
(222)
|
(126)
|
|
(335)
|
(231)
|
|
Operating profit before
working capital
changes
|
114,661
|
92,718
|
84,475
|
|
207,379
|
153,083
|
|
Increase in
inventories
|
(41,697)
|
(36,625)
|
(8,503)
|
|
(78,322)
|
(26,717)
|
|
Increase in trade
receivables
|
(94,909)
|
(57,733)
|
(54,634)
|
|
(152,642)
|
(67,280)
|
|
(Increase)/decrease in
other
receivables
and prepayments
|
(1,025)
|
(8,774)
|
4,232
|
|
(9,799)
|
2,540
|
|
Increase in trade
payables
|
39,630
|
27,999
|
15,671
|
|
67,629
|
31,967
|
|
Increase/(decrease) in accrued
liabilities and
other payables
|
4,465
|
(6,016)
|
7,339
|
|
(1,551)
|
(12,412)
|
|
Cash generated from
operations
|
21,125
|
11,569
|
48,580
|
|
32,694
|
81,181
|
|
Interest paid
|
(2,297)
|
(1,873)
|
(1,541)
|
|
(4,170)
|
(2,974)
|
|
Income tax paid
|
(16,718)
|
(24,902)
|
(14,628)
|
|
(41,620)
|
(31,133)
|
|
|
|
|
|
|
|
|
|
Net cash
generated from/(used
in)
operating
activities
|
2,110
|
(15,206)
|
32,411
|
|
(13,096)
|
47,074
|
|
|
|
|
|
|
|
|
|
Cash flows
from investing activities
|
|
|
|
|
|
|
|
Proceed from disposal of
property,
plant and equipment
|
4,801
|
708
|
1,774
|
|
5,509
|
1,774
|
|
Acquisition of property, plant
and
equipment
|
(80,223)
|
(164,241)
|
(106,067)
|
|
(244,464)
|
(106,293)
|
|
Interest received
|
113
|
222
|
126
|
|
335
|
231
|
|
Acquisition of subsidiary, net
of cash
acquired
|
-
|
-
|
-
|
|
-
|
(36,311)
|
|
|
|
|
|
|
|
|
|
Net cash
used in investing activities
|
(75,309)
|
(163,311)
|
(104,167)
|
|
(238,620)
|
(140,599)
|
|
|
|
|
|
|
|
|
|
Cash flows
from financing activities
|
|
|
|
|
|
|
|
Bank borrowings
obtained
|
71,200
|
-
|
28,900
|
|
71,200
|
36,900
|
|
Repayment of short-term
loans
|
(31,200)
|
-
|
(14,200)
|
|
(31,200)
|
(18,700)
|
|
Purchase of warrants
|
-
|
-
|
(6,803)
|
|
-
|
(6,803)
|
|
|
|
|
|
|
|
|
|
Net cash
generated from financing activities
|
40,000
|
-
|
7,897
|
|
40,000
|
11,397
|
|
|
|
|
|
|
|
|
|
Net
decrease in cash and cash
equivalents
|
(33,199)
|
(178,517)
|
(63,859)
|
|
(211,716)
|
(82,128)
|
|
Cash and cash
equivalents,
beginning of period
|
84,923
|
263,495
|
131,860
|
|
263,495
|
150,121
|
|
Effect of foreign exchange
rate
differences
|
(78)
|
(55)
|
(15)
|
|
(133)
|
(7)
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents,
end of
period
|
51,646
|
84,923
|
67,986
|
|
51,646
|
67,986
|
|
|
|
|
|
|
|
|
CHINA
CERAMICS CO., LTD. AND ITS SUBSIDIARIES
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMEMTS OF FINANCIAL
POSITION
|
|
(U.S Dollar
in thousands)
|
|
|
As at
June 30, 2011
|
|
As at
December 31, 2010
|
|
ASSETS AND
LIABILITIES
|
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Property, plant and
equipment
|
114,531
|
|
69,570
|
|
Land use rights
|
4,889
|
|
4,839
|
|
Goodwill
|
578
|
|
566
|
|
|
119,998
|
|
74,975
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
Inventories
|
39,536
|
|
26,851
|
|
Trade receivables
|
67,397
|
|
42,875
|
|
Prepayments and other
receivables
|
2,895
|
|
1,350
|
|
Cash and bank
balances
|
7,990
|
|
39,923
|
|
|
117,818
|
|
110,999
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Trade payables
|
38,062
|
|
27,028
|
|
Accrued liabilities and other
payables
|
16,659
|
|
6,986
|
|
Interest-bearing bank
borrowings
|
17,328
|
|
10,909
|
|
Income tax payable
|
4,220
|
|
3,421
|
|
|
76,269
|
|
48,344
|
|
Non-current
liabilities
|
|
|
|
|
Long term borrowings
|
3,868
|
|
3,788
|
|
Deferred tax
liabilities
|
171
|
|
170
|
|
|
4,039
|
|
3,958
|
|
|
|
|
|
|
Net current
assets
|
41,549
|
|
62,655
|
|
|
|
|
|
|
Net assets
|
157,508
|
|
133,672
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Total
shareholders' equity
|
157,508
|
|
133,672
|
|
|
|
|
|
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
|
|
Six months ended
|
|
|
June 30
|
March 31
|
June 30
|
|
June 30
|
June 30
|
|
|
2011
|
2011
|
2010
|
|
2011
|
2010
|
|
Revenue
|
57,306
|
46,830
|
39,847
|
|
104,136
|
73,362
|
|
Cost of
Sales
|
(39,846)
|
(32,332)
|
(27,435)
|
|
(72,178)
|
(50,814)
|
|
Gross profit
|
17,460
|
14,498
|
12,412
|
|
31,958
|
22,548
|
|
Selling and distribution
expenses
|
(472)
|
(385)
|
(222)
|
|
(857)
|
(438)
|
|
Administrative
expenses
|
(1,481)
|
(2,376)
|
(874)
|
|
(3,857)
|
(1,720)
|
|
Finance costs
|
(353)
|
(285)
|
(216)
|
|
(638)
|
(435)
|
|
Other income
|
15
|
42
|
38
|
|
57
|
40
|
|
Other expenses
|
(114)
|
(105)
|
-
|
|
(219)
|
-
|
|
Profit before
taxation
|
15,055
|
11,389
|
11,138
|
|
26,444
|
19,995
|
|
Income tax
expense
|
(3,916)
|
(3,173)
|
(2,876)
|
|
(7,089)
|
(5,113)
|
|
Net Profit for
the period
|
11,139
|
8,216
|
8,262
|
|
19,355
|
14,882
|
|
Attributable
to:
Shareholders of
the Company
|
|
|
|
|
|
|
|
EPS-Basic
|
0.61
|
0.45
|
0.81
|
|
1.06
|
1.46
|
|
EPS-Diluted
|
0.61
|
0.45
|
0.81
|
|
1.06
|
1.46
|
|
Shares used in calculating
basic EPS
|
|
|
|
|
|
|
|
Basic
|
18,254,002
|
18,254,002
|
10,164,298
|
|
18,254,002
|
10,164,298
|
|
Diluted
|
18,254,002
|
18,254,002
|
10,164,298
|
|
18,254,002
|
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
|
|
Six months ended
|
|
|
June
|
March
|
June
|
|
June
|
June
|
|
|
30
|
31
|
30
|
|
30
|
30
|
|
|
2011
|
2011
|
2010
|
|
2011
|
2010
|
|
Cash flows
from operating activities
|
|
|
|
|
|
|
|
Profit before
taxation
|
15,055
|
11,389
|
11,138
|
|
26,444
|
19,995
|
|
Adjustments for
|
|
|
|
|
|
|
|
Amortization of land use
rights
|
26
|
25
|
25
|
|
51
|
49
|
|
Depreciation of property,
plant
and equipment
|
1,740
|
1,341
|
1,011
|
|
3,081
|
1,973
|
|
Lose/(gain) on disposal of
property,
plant and equipment
|
113
|
16
|
(20)
|
|
129
|
(20)
|
|
Share-based
compensation
|
375
|
1,082
|
-
|
|
1,457
|
-
|
|
Finance costs
|
353
|
285
|
225
|
|
638
|
435
|
|
Interest income
|
(17)
|
(34)
|
(19)
|
|
(51)
|
(34)
|
|
Operating profit before
working capital
changes
|
17,645
|
14,104
|
12,360
|
|
31,749
|
22,398
|
|
Increase in
inventories
|
(6,420)
|
(5,571)
|
(1,245)
|
|
(11,991)
|
(3,909)
|
|
Increase in trade
receivables
|
(14,587)
|
(8,782)
|
(7,994)
|
|
(23,369)
|
(9,844)
|
|
(Increase)/decrease in
other
receivables
and prepayments
|
(165)
|
(1,335)
|
620
|
|
(1,500)
|
372
|
|
Increase in trade
payables
|
6,095
|
4,259
|
2,293
|
|
10,354
|
4,677
|
|
Increase/(decrease) in
accrued
liabilities and other
payables
|
678
|
(915)
|
1,073
|
|
(237)
|
(1,816)
|
|
Cash generated from
operations
|
3,246
|
1,760
|
7,107
|
|
5,006
|
11,878
|
|
Interest paid
|
(353)
|
(285)
|
(225)
|
|
(638)
|
(435)
|
|
Income tax paid
|
(2,584)
|
(3,788)
|
(2,141)
|
|
(6,372)
|
(4,555)
|
|
|
|
|
|
|
|
|
|
Net cash
generated from/(used
in)
operating
activities
|
309
|
(2,313)
|
4,741
|
|
(2,004)
|
6,888
|
|
|
|
|
|
|
|
|
|
Cash flows
from investing activities
|
|
|
|
|
|
|
|
Proceed from disposal of
property,
plant and equipment
|
735
|
108
|
260
|
|
843
|
260
|
|
Acquisition of property, plant
and
equipment
|
(12,444)
|
(24,983)
|
(15,519)
|
|
(37,427)
|
(15,552)
|
|
Interest received
|
17
|
34
|
19
|
|
51
|
34
|
|
Acquisition of subsidiary, net
of cash
acquired
|
-
|
-
|
-
|
|
-
|
(5,318)
|
|
|
|
|
|
|
|
|
|
Net cash
used in investing activities
|
(11,692)
|
(24,841)
|
(15,240)
|
|
(36,533)
|
(20,576)
|
|
|
|
|
|
|
|
|
|
Cash flows
from financing activities
|
|
|
|
|
|
|
|
Bank borrowings
obtained
|
(10,901)
|
-
|
4,229
|
|
10,901
|
5,399
|
|
Repayment of short-term
loans
|
(4,777)
|
-
|
(2,078)
|
|
(4,777)
|
(2,736)
|
|
Purchase of warrants
|
-
|
-
|
(996)
|
|
-
|
(996)
|
|
|
|
|
|
|
|
|
|
Net cash
generated from financing activities
|
6,124
|
-
|
1,155
|
|
6,124
|
1,667
|
|
|
|
|
|
|
|
|
|
Net
decrease in cash and cash
equivalents
|
(5,259)
|
(27,154)
|
(9,344)
|
|
(32,413)
|
(12,021)
|
|
Cash and cash
equivalents,
beginning of
period
|
12,969
|
39,923
|
19,289
|
|
39,923
|
21,957
|
|
Effect of foreign exchange
rate
differences
|
280
|
200
|
40
|
|
480
|
49
|
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents,
end of
period
|
7,990
|
12,969
|
9,985
|
|
7,990
|
9,985
|
|
|
|
|
|
|
|
|
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
|
|
|
|
SOURCE China Ceramics Co., Ltd.