China Ceramics Announces Fourth Quarter and Fiscal Year 2010 Financial Results

Mar 14, 2011, 07:00 ET from China Ceramics Co., Ltd.

JINJIANG, China, March 14, 2011 /PRNewswire-Asia/ -- China Ceramics Co., Ltd. (Nasdaq: 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 fourth quarter ended December 31, 2010.

Fourth Quarter 2010 Highlights

  • Revenue was RMB 273.1 million (US$ 42.5 million), up 24.3% from the fourth quarter of 2009;
  • Gross profit was RMB 91.5 million (US$ 14.2 million), up 27.6% from the fourth quarter of 2009;
  • Gross profit margin was 33.5%, compared to 32.6% in the fourth quarter of 2009;
  • Net profit was RMB 60.5 million (US$ 9.4 million), up 133.5% from the fourth quarter of 2009;
  • Earnings per fully diluted share were RMB 3.71(US$ 0.58).

Full Year 2010 Highlights

  • Revenue was RMB 1,068.6 million (US$ 159.2 million), up 27.9% from the same period of 2009;
  • Gross profit was RMB 339.0 million (US$ 50.5 million), up 33.9% from the same period of 2009;
  • Gross profit margin was 31.7%, compared to 30.3% in the same period of 2009;
  • Net profit was RMB 225.5 million (US$ 33.6 million), up 47.5% from the same period of 2009;
  • Earnings per fully diluted share were RMB 16.96 (US$ 2.53).

Fourth quarter 2010 Results

Revenue for the fourth quarter ended December 31, 2010 was RMB 273.1 million (US$ 42.5 million), up by 24.3% compared to the fourth quarter ended December 31, 2009. The year-over-year increase in revenue was primarily driven by a 17.4% increase in volume from 8.6 million square meters to 10.1 million square meters in the fourth quarter of 2010 compared with the same period in 2009. The growth in volume was primarily due to increased production capacity at the plant in Gaoan, Jiangxi Province ("Hengdali") that we acquired in January 2010. Hengdali contributed RMB 55.9 million of total revenue in the quarter ended December 31, 2010. Revenue contributed by Hengda for the in the fourth quarter totaled RMB 217.2 million.

Gross profit for the fourth quarter ended December 31, 2010 was RMB 91.5 million (US$ 14.2 million), up 27.6% from RMB 71.7 million for the fourth quarter ended December 31, 2009. The year-over-year increase in gross profit was driven by higher sales volume and higher gross margin of new products in our Hengdali operation. Gross margin was 33.5% compared to 32.6% for the same period last year.

Administrative expenses for the fourth quarter ended December 31, 2010 were RMB 6.5 million (US$ 1.0 million), up 140.7% from RMB 2.7 million (US$ 0.4 million) in the fourth quarter of 2009. The year-over-year increase in administrative expenses was primarily due to the additional depreciation and amortization expenses RMB 0.3 million (US$ 0.05 million) incurred from the acquisition of property, plant and equipment, consulting expenses RMB 0.5 million (US$ 0.08 million) related to the public offering in November 2010, as well as from legal consulting RMB 1.6 million (US$ 0.3 million), the increased salary RMB 0.4 million (US$ 0.06 million) of Hengdali and other expenses related to China Ceramics' status as a public company.

Selling and distribution expenses for the fourth quarter ended December 31, 2010 were RMB 2.4 million (US$ 0.4 million), or 0.9% of sales, compared to RMB 1.9 million, or 0.9% of sales, in the same period of 2009. The year-over-year increase in selling expenses was due to the higher payroll (RMB 0.2 million) and advertising expenses (RMB 0.3 million) at the newly acquired Hengdali facility.

Finance costs for the fourth quarter ended December 31, 2010 were RMB 1.5 million (US$ 0.2million), up 275.0% from RMB 0.4 million in the fourth quarter of 2009. The year-over-year increase in finance costs resulted from loans (RMB 55.0 million) assumed in connection with the acquisition of Hengdali.

Profit from operations for the fourth quarter ended December 31, 2010 was RMB 83.6 million (US$ 13.0 million), up 20.5% from RMB 69.4 million in the fourth quarter of 2009. The year-over-year increase in profit from operations was the result of higher revenue and the absence of one-time merger costs (RMB 26.4 million) incurred in the fourth quarter of 2009.

Other income for the fourth quarter ended December 31, 2010 was RMB 1.0 million (US$ 0.2 million), down 56.5% from RMB 2.3 million in the same period of 2009. Other income mainly consisted of sale of waste parts such as scrap metals, gears and transportation belts from equipment and moldings, and foreign exchange gain/loss. The year-over-year decrease in other income was primarily due to foreign exchange loss (RMB 0.8 million) in the fourth quarter ended December 31, 2010.

Net profit for the fourth quarter ended December 31, 2010 was RMB 60.5 million (US$ 9.4 million), up 133.5% from the same period in 2009. The year-over-year increase in net profit was primarily driven by strong growth in revenue of Hengdali, 2010 and the absence of one-time merger costs (RMB 26.4 million) incurred in November 2009, which reduced the net profit for the fourth quarter of 2009.

Earnings per fully diluted share were RMB 3.71 (US$ 0.58) for the fourth quarter ended December 31, 2010, up 22.4% from RMB 3.03 (US$ 0.44) over the same period in 2009. The year-over-year increase in earnings per share was mainly due to the strong growth in net profit, meanwhile offset by increased share numbers. On November 24, 2010, 3,350,000 shares were issued, bringing the number of issued and outstanding shares to 16,459,202 as of December 31, 2010.

Full Year 2010 Results

Revenue for the year ended December 31, 2010 increased by 27.9% to RMB 1,068.6 million (US$ 159.2 million) compared to the year ended December 31, 2009. Gross profit was RMB 339.0 million (US$ 50.5 million), up 33.9% from RMB 253.2 million in the year ended December 31, 2009. Gross margin was 31.7% compared to 30.3% in the same period of 2009. Selling expenses were RMB 7.2 million (US$ 1.1 million), compared to RMB 6.9 million in the same period of 2009. Administrative expenses were RMB 25.5 million (US$ 3.8 million), compared to RMB 10.1 million for the same period of 2009. Net profit for the whole year ended December 31, 2010 was RMB 225.5 million (US$ 33.6 million), up 47.5% from the same period in 2009. Earnings per fully diluted share were RMB 16.96 (US$ 2.53) for the year ended December 31, 2010, down from RMB 23.65 in the same period of 2009.

Fourth Quarter 2010 Statements of Selected Financial Position Items

  • Cash and bank balances were RMB 263.5 million (US$ 39.9 million) as of December 31, 2010, compared with RMB 41.5 million (US$ 6.2 million) as of September 30, 2010 and RMB 150.1 million (US$ 22.0 million) as of December 31, 2009. The increase in the cash and bank balances was partially due to the net proceeds generated from the sale of shares in our November 2010 public offering, which amounted to approximately RMB 159.6 million (US$ 24.0 million). The dynamic growth in revenue also increased the cash generated from operating activities.  
  • Inventory turnover was 73 days as of December 31, 2010 compared with 66 days as of September 30, 2010 and 77 days as of December 31, 2009. The increase in inventory turnover resulted from the Company building up inventory ahead of backlog orders. The year-over-year decrease in the inventory turnover was due to the increased delivery rate, the goods were picked up by customers directly now rather than delivered by the Company.
  • Trade receivables turnover was 95 days as of December 31, 2010 compared with 109 days as of September 30, 2010 and 102 days as of December 31, 2009. 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 December 31, 2010 compared with 93 as of September 30, 2010 and 87 days as of December 31, 2009. The year-over-year decrease in the trade receivables turnover was due to the better cash collection in the fourth quarter ended December 31, 2010.
  • Trade payables turnover was 76 days as of December 31, 2010 compared with 71 days as of September 30, 2010 and 69 days as of December 31, 2009. The increase in the trade payables turnover compared to the third quarter of 2010 resulted from the increased balance of trade payables as of December 31, 2010 with the significant increase in inventory.
  • Bank borrowings (including both short-term borrowings and long-term borrowings) were RMB 97.0 million (US$ 14.7million) as of December 31, 2010 compared to RMB 99.7 million (US$ 14.9 million) as of September 30, 2010 and RMB 26.5 million (US$ 3.9 million) as of December 31, 2009.
  • Capital expenditures for Hengda were approximately RMB 100.4 million (US$ 15.0 million) in 2010. In the fourth quarter ended December 31, 2010, the Company invested RMB 26.4 million (US$ 3.9 million) to replace and improve older manufacturing equipment at Hengda. The enhancement of production lines increased annual production capacity at Hengda to 32.2 million square meters of ceramic tiles, up from 28 million square meters. China Ceramics' total capacity from the beginning of 2011 currently stands at 42.2 million square meters. The capital expenditure for phase II of the construction and expansion of the Hengdali plant was approximately RMB 91.6 million (US$ 13.6 million) in 2010. The Company expects the completion of phase II at Hengdali will happen at the beginning of second quarter of 2011, which is expected to increase annual production capacity to 24 million square meters, up from 10 million square meters. As a result, China Ceramics expects to have total production capacity of approximately 56.2 million square meters after the completion of the phase II in the second quarter of 2011, up from 38 million square meters at the end of 2010.

Liquidity and capital resources

Cash flow provided by operating activities was RMB 204.2 million (US$ 30.4 million) for the year ended December 31, 2010, an increase of RMB 44.6 million (US$ 7.1 million), or 27.9% from the RMB 159.6 million (US$ 23.3 million) net cash provided by operating activities for the same period in 2009. The year-over-year increase was mainly due to the increase in revenue and a decrease in trade receivables of RMB 62.9 million, primarily offset by an increase in inventories of RMB 68.0 million and a decrease in accrued liabilities and other payables of RMB 29.1 million..

Cash flow used in investing activities in the year ended December 31, 2010 was RMB 254.1 million (US$ 37.8 million), compared to RMB 152.3 million (US$ 22.3 million) of net cash outflow used in investing activities in the same period of 2009. The increase was mainly due to an increase in acquisition of property, plant and equipment for (i) the completion of phase I construction and expansion of Hengdali (RMB 30.2 million (US$ 4.5 million)) (ii) the initial stage of phase II construction for Hengdali (RMB 91.6 million (US$ 13.6 million)) and (iii) improvements of RMB 100.4 million (US$ 15.0 million) at our Hengda facility, which led to capital expenditures of an aggregate of RMB 222.2 million (US$ 33.1 million) during 2010.

Cash flow generated from financing activities was RMB 163.2 million (US$ 24.5 million) for the year ended December 31, 2010, as compared to approximately RMB 91.1 million (US$ 13.3 million) cash generated from financing activities in the same period of 2009 and was primarily attributable to a RMB 159.6 million (US$ 24.0 million) from issuance of new shares, which was partially offset by the repayment of bank loans of RMB 62.2 million (US$ 9.3 million).

Recent Developments

The shareholders of the Company approved the 2010 Incentive Compensation Plan ("the Plan") at the annual meeting held on December 27, 2010. In accordance with the Plan, the Board of Directors of the Company has appointed the Compensation Committee (the "Committee") to administer the Plan. In accordance with the Plan, on January 27, 2011, the Committee recommended, and the Board approved, awards of 1,130,000 options to Huang Jia Dong, Su Pei Zhi, Su Wei Feng, Hen Man Edmund, Paul K. Kelly, Cheng Yan Davis, Ding Wei Dong and William L. Stulginsky effective as of January 27, 2011 ("Award Date") at an exercise price of $7.65 per share (25% of the options awarded vest on January 27, 2011, 25% on January 27, 2012 (12 months from Award Date), 25% on January 27, 2013 (24 months from Award Date) and 25% on January 27, 2014 (36 months from the Award Date) respectively). The fair value evaluation of the equity has not been completed as of the report date.

Business Outlook

The Company's backlog of orders for delivery in the first quarter of 2011 is approximately RMB 323.2 million (US$ 49.0 million), representing a year-over-year growth rate of 33.4% compared to the first quarter of 2010. The expected sales volume in the first quarter of 2011 is approximately 11.5 million square meters, representing a 30.7% increase from 8.8 million square meters sold in the first quarter of 2010.

Conference Call Information

The Company will host a conference call at 9:00 am EDT on Monday, March 14, 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 49178270. A replay of the conference call will be available for 14 days starting from 11:00 am ET on Monday, March 14, 2011. To access the replay, dial +1 (800) 642-1687. International callers should dial +1 (706) 645-9291. The pass code is 49178270.  

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", "TOERTO" and "WULIQIAO" brands, are available in over 2000 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, 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, 2009 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 STATEMEMTS OF FINANCIAL POSITION

(RMB in thousands)

As at December 31, 2010

As at December 31, 2009

(UNAUDITED)

ASSETS AND LIABILITIES

Non-current assets

Property, plant and equipment

459,161

64,184

Land use rights

31,936

165

Goodwill

3,735

-

494,832

64,349

Current assets

Inventories

177,217

114,658

Trade receivables

282,976

270,840

Prepayments and other receivables

1,973

149,268

Cash and bank balances

263,495

150,121

725,661

684,887

Current liabilities

Trade payables

178,382

126,251

Accrued liabilities and other payables

39,174

74,749

Interest-bearing bank borrowings

72,000

26,500

Income tax payable

22,576

16,639

312,132

244,139

Non-current liabilities

Long term borrowings

25,000

-

Deferred tax liabilities

1,122

-

26,122

-

Net current assets

413,529

440,748

Net assets

882,239

505,097

EQUITY

Total shareholders' equity

882,239

505,097

CHINA CERAMICS CO., LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(RMB in thousands, except EPS and share data)

Three months ended

Year ended

December

September

December

December

December

31

30

31

31

31

2010

2010

2009

2010

2009

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Revenue

273,050

294,088

219,716

1,068,551

835,747

Cost of Sales

(181,553)

(200,724)

(148,043)

(729,576)

(582,530)

Gross profit

91,497

93,364

71,673

338,975

253,217

Selling and distribution expenses

(2,444)

(1,738)

(1,889)

(7,176)

(6,912)

Administrative expenses

(6,498)

(7,268)

(2,679)

(25,524)

(10,088)

Finance costs

(1,544)

(1,652)

(430)

(6,170)

(1,375)

Merger costs

-

-

(26,429)

-

(26,429)

Other income

1,045

2,649

2,307

3,966

3,735

Profit before taxation

82,056

85,355

42,553

304,071

212,148

Income tax expense

(21,549)

(22,099)

(16,639)

(78,597)

(59,287)

Net Profit for the period

60,507

63,256

25,914

225,474

152,861

Attributable to:

 

 

 

 

 

Shareholders of the Company

EPS-Basic

3.71

5.69

3.36

16.96

24.47

EPS-Diluted

3.71

5.69

3.03

16.96

23.65

Shares used in calculating basic EPS

Basic

16,287,698

11,124,593

7,713,538

13,292,189

6,246,820

Diluted

16,287,698

11,124,593

8,557,205

13,292,189

6,462,424

CHINA CERAMICS CO., LTD. AND ITS SUBSIDIARIES

SALES VOLUME AND AVERAGE SELLING PRICE

Three months ended

Year ended

December

September

December

December

December

31

30

31

31

31

2010

2010

2009

2010

2009

Sales volume (square meters)

10,110,484

11,359,920

8,569,919

40,899,720

33,597,744

Average Selling Price    (in RMB/square meter)

27.0

25.9

25.6

26.1

24.9

Average Selling Price    (in USD/square meter)

4.2

3.8

3.8

3.9

3.6

CHINA CERAMICS CO., LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(RMB in thousands)

Three months ended

Year ended

December

September

December

December

December

31

30

31

31

31

2010

2010

2009

2010

2009

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Cash flows from operating activities

Profit before taxation

82,056

85,355

42,553

304,071

212,148

Adjustments for

   Amortization of land use rights

167

168

-

668

3

   Depreciation of property, plant      and equipment

8,528

8,182

3,798

30,195

15,628

   Gain on disposal of property,      plant and equipment

(128)

(219)

(328)

(485)

(328)

   Merger costs by share-based payment

-

-

14,100

-

14,100

   Finance costs

1,544

1,652

446

6,170

1,375

   Interest income

(93)

(53)

(159)

(377)

(402)

Operating profit before working capital  changes

92,074

95,085

60,410

340,242

242,524

   (Increase)/decrease in inventories

(26,995)

2,626

(12,330)

(51,086)

16,904

   (Increase)/decrease in trade receivables

82,141

(26,997)

20,387

(12,136)

(74,992)

   (Increase)/decrease in other      Receivables and prepayments

(1,135)

906

520

2,311

70

   Increase/(decrease) in trade payables

20,582

(11,971)

6,341

40,578

31,956

   Increase/(decrease) in accrued liabilities      and other payables

(51,557)

27,166

(5,682)

(36,803)

(7,686)

Cash generated from operations

115,110

86,815

69,646

283,106

208,776

   Interest paid

(1,544)

(1,652)

(446)

(6,170)

(1,375)

   Income tax paid

(23,014)

(18,548)

(17,668)

(72,695)

(47,781)

Net cash generated from  operating activities

90,552

66,615

51,532

204,241

159,620

Cash flows from investing activities

   Proceed from disposal of property,      plant and equipment

936

1,382

729

4,092

729

   Acquisition of property, plant and      equipment

(26,441)

(89,512)

(7,339)

(222,246)

(8,041)

   Interest received

93

53

159

377

402

   Prepayment for the Gaoan      facility acquisition

-

-

(145,384)

-

(145,384)

   Acquisition of subsidiary, net of      cash acquired

-

-

-

(36,311)

-

Net cash used in investing activities

(25,412)

(88,077)

(151,835)

(254,088)

(152,294)

CHINA CERAMICS CO., LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

(RMB in thousands)

Three months ended

Year ended

December

September

December

December

December

31

30

31

31

31

2010

2010

2009

2010

2009

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Cash flows from financing activities

   Bank borrowings obtained

-

35,800

-

72,700

42,300

   Repayment of short-term loans

(2,700)

(40,800)

(8,000)

(62,200)

(28,100)

   Cash acquired in reverse      recapitalization

-

-

104,491

-

104,491

   Payment of underwriter fee

-

-

(8,500)

-

(8,500)

   Advances from a director

-

-

-

-

3,364

   Proceeds from issuance of ordinary     shares

159,551

-

-

159,551

0*

   Purchase of warrants

-

-

-

(6,803)

-

   Dividend paid

-

-

-

-

(22,455)

Net cash generated from /(used in)  financing activities

156,851

(5,000)

87,991

163,248

91,100

Net increase(decrease)  in cash and cash equivalents

221,991

(26,462)

(12,312)

113,401

98,426

Cash and cash equivalents,  beginning of period

41,478

67,986

162,344

150,121

51,606

Effect of foreign exchange rate  differences

26

(46)

89

(27)

89

 

 

 

 

 

Cash and cash equivalents,  end of period

263,495

41,478

150,121

263,495

150,121

* Amount less than RMB 1,000

CHINA CERAMICS CO., LTD. AND ITS SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(U.S Dollar in thousands)

As at

December 31, 2010

ASSETS AND LIABILITIES

Non-current assets

Property, plant and equipment

69,570

Land use rights

4,839

Goodwill

566

74,975

Current assets

Inventories

26,851

Trade receivables

42,875

Prepayments and other receivables

299

Cash and bank balances

39,923

109,948

Current liabilities

Trade payables

27,028

Accrued liabilities and other payables

5,935

Interest-bearing bank borrowings

10,909

Income tax payable

3,421

47,293

Non-current liabilities

Long term borrowings

3,788

Deferred tax liabilities

170

3,958

 

Net current assets

62,655

 

Net assets

133,672

EQUITY

 

Total shareholders' equity

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

Year ended

December

September

December

31

30

31

2010

2010

2010

Revenue

42,474

43,342

159,178

Cost of Sales

(28,284)

(29,584)

(108,682)

Gross profit

14,190

13,758

50,496

Selling and distribution expenses

(375)

(256)

(1,069)

Administrative expenses

(1,011)

(1,071)

(3,802)

Finance costs

(240)

(244)

(919)

Other income

162

389

591

Profit before taxation

12,726

12,576

45,297

Income tax expense

(3,339)

(3,256)

(11,708)

Net Profit for the period

9,387

9,320

33,589

Attributable to:

 

Shareholders of the Company

EPS-Basic

0.58

0.84

2.53

EPS-Diluted

0.58

0.84

2.53

Shares used in calculating basic EPS

EPS-Basic

16,287,698

11,124,593

13,292,189

EPS-Diluted

16,287,698

11,124,593

13,292,189

CHINA CERAMICS CO., LTD. AND ITS SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S Dollar in thousands)

Three months ended

Year ended

December

September

December

31

30

31

2010

2010

2010

Cash flows from operating activities

Profit before taxation

12,726

12,576

45,297

Adjustments for

   Amortization of land use rights

27

24

100

   Depreciation of property, plant and equipment

1,319

1,208

4,498

   Gain on disposal of property, plant and equipment

(20)

(32)

(72)

   Finance costs

240

244

919

   Interest income

(14)

(8)

(56)

Operating profit before working capital changes

14,278

14,012

50,686

   (Increase)/decrease in inventories

(4,076)

370

(7,610)

   (Increase)/decrease in trade receivables

12,023

(3,999)

(1,808)

   (Increase)/decrease in other receivables and prepayments

(162)

135

344

   Increase/(decrease) in trade payables

3,111

(1,737)

6,045

   Increase(decrease) in accrued liabilities and other payables

(7,646)

3,978

(5,482)

Cash generated from operations

17,528

12,759

42,175

   Interest paid

(240)

(244)

(919)

   Income tax paid

(3,541)

(2,739)

(10,829)

Net cash generated from operating activities

13,747

9,776

30,427

Cash flows from investing activities

   Proceed from disposal of property, plant and equipment

147

204

610

   Acquisition of property, plant and equipment

(4,381)

(13,193)

(33,107)

   Interest received

14

8

56

   Acquisition of subsidiary, net of cash acquired

-

-

(5,318)

Net cash used in investing activities

(4,220)

(12,981)

(37,759)

CHINA CERAMICS CO., LTD. AND ITS SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

(U.S Dollar in thousands)

Three months ended

Year ended

December

September

December

31

30

31

2010

2010

2010

Cash flows from financing activities

   Bank borrowings obtained

-

5,438

10,830

   Repayment of short-term loans

(537)

(5,996)

(9,266)

   Proceeds from issuance of ordinary shares

23,981

-

23,981

   Purchase of warrants

-

-

(996)

Net cash generated from /(used in) financing activities

23,444

(558)

24,549

Net increase(decrease) in cash and cash equivalents

32,971

(3,763)

17,217

Cash and cash equivalents, beginning of period

6,193

9,985

21,957

Effect of foreign exchange rate differences

759

(29)

749

Cash and cash equivalents, end of period

39,923

6,193

39,923

Contact Information:

China Ceramics Co., Ltd.

Edmund Hen, Chief Financial Officer

Email: info@cceramics.com  

CCG Investor Relations Inc.

Mr. Ed Job, CFA - Account Manager

Email: ed.job@ccgir.com

Phone: +1-646-213-1914

SOURCE China Ceramics Co., Ltd.



RELATED LINKS

http://www.cceramics.com