China Ceramics Announces Third Quarter 2011 Financial Results

Nov 14, 2011, 06:00 ET from China Ceramics Co., Ltd.

JINJIANG, China, Nov. 14, 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 third quarter ended September 30, 2011.  

Third Quarter 2011 Highlights

  • Revenue was RMB 406.9 million (US$ 63.4 million), up 38.4% from the third quarter of 2010;
  • Gross profit was RMB 119.1 million (US$ 18.6 million), up 27.5% from the third quarter of 2010;
  • Gross profit margin was 29.3%, down 2.5% from the third quarter of 2010;
  • Net profit was RMB 75.8 million (US$ 11.8 million), up 19.9% from the third quarter of 2010;
  • On a quarter-to-quarter sequential basis, revenue was up 9.3%, gross profit was up 5.0% and net profit was up 4.7%;
  • Non-GAAP net profit, which excludes the current quarter's share-based compensation expenses, was RMB 78.2 million (US$ 12.1 million), up 23.7% from RMB 63.3 million (US$ 9.3 million) in the third quarter of 2010;
  • Earnings per fully diluted share were RMB 4.16 (US$ 0.65).

"We are pleased to report strong operating and financial results for the third quarter of 2011, testimony to the brand recognition of our distinct and highly customized products, exceptional marketing ability and the utilization of our additional production capacity," said Mr. Jiadong Huang, CEO of China Ceramics. "Our third quarter saw the completion of 10 million square meters of newly-added capacity at our Hengda facility from the second quarter, which now achieves its expansion goal with an annual productive capacity of 42 million share meters of ceramic tiles.  The completion of the Phase II expansion at our Hengdali facility by year end 2011 will increase our company's annual production capacity to 72 million square meters of ceramic tiles".  

"We anticipate that our state-of-the-art facilities will spearhead further industry innovation and the continued evolution of our company which will enable us to optimally meet the building materials needs of Tier II and Tier III cities," Mr. Huang continued.  "It is exciting to see the productive capacity of our Hengda and Hengdali facilities increase as outlined in our strategic growth plan.  We expect our new production capacity to drive an improvement in our market positioning in 2011 and beyond."  

Third Quarter 2011 Results

Revenue for the third quarter ended September 30, 2011 was RMB 406.9 million (US$ 63.4 million), up 38.4% from RMB 294.1 million (US$ 43.3 million) from the third quarter ended September 30, 2010. The year-over-year increase in revenue was primarily driven by a 28.1% increase in the sales volume of ceramic tiles to 14.6 million square meters in the third quarter of 2011 from 11.4 million square meters in the third quarter of 2010. We were able to increase our sales volume due to increased production capacity at the Hengda facility together with our current capacity from the Hengdali facility, both of which operated at full capacity during the quarter.

Gross profit for the third quarter ended September 30, 2011 was RMB 119.1 million (US$ 18.6 million), up 27.5% from RMB 93.4 million (US$ 13.8 million) for the third quarter ended September 30, 2010. The year-over-year increase in gross profit was mostly driven by higher sales volume in the most recent quarter. Gross profit margin was 29.3% compared to 31.8% for the same period in 2010, and the decrease in gross profit margin was due to an increase in material cost and labor cost. From time to time, the Company considers its ability to increase prices given increased costs. Historically, the Company has been able to increase prices each year in the first quarter. The Company expects to increase prices once again in the first quarter of 2012.

Selling and distribution expenses were RMB 3.1 million (US$ 0.5 million), or 0.8% of sales, compared to RMB 1.7 million (US$ 0.3 million), or 0.6% of sales, in the third quarter of 2010. The year-over-year increase in selling expenses was primarily due to increased travel expenses of RMB 0.5 million (US$ 0.09 million) and advertising expenses of RMB 0.5 million (US$ 0.09 million) for promotion of our products.

Administrative expenses for the third quarter ended September 30, 2011 were RMB 8.7 million (US$ 1.4 million), up 19.2% from RMB 7.3 million (US$ 1.1 million) in the third 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 9.5 million (US$ 1.4 million) will be incurred from October 2011 to January 2014.

Profit before taxation for the third quarter ended September 30, 2011 was RMB 102.3 million (US$ 15.9 million), up 19.8% from RMB 85.4 million (US$ 12.6 million) in the third quarter of 2010. The year-over-year increase in profit from operations was the result of higher revenue partially offset by higher selling and administrative expenses.

Net profit for the third quarter ended September 30, 2011 was RMB 75.8 million (US$ 11.8 million), up 19.9% from RMB 63.3 million (US$ 9.3 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 4.16 (US$ 0.65) for the third quarter ended September 30, 2011, down 26.9% from RMB 5.69 (US$ 0.84) over the same period in 2010. Earnings per fully diluted share in the third quarter of 2011 were computed using 18.3 million shares while net earnings per fully diluted share in the third quarter of 2010 were computed using 11.1 million shares.

Non-GAAP profit before taxation, which excludes share-based compensation expenses, was RMB 104.7 million (US$ 16.3 million) in the third quarter ended September 30, 2011, up 22.6% from RMB 85.4 million (US$ 12.6 million) in 2010 (for which period there was no non-GAAP adjustment).

Non-GAAP net profit, which excludes share-based compensation expenses, was RMB 78.2 million (US$ 12.1 million) in the third quarter ended September 30, 2011, an increase of 23.7% from RMB 63.3 million (US$ 9.3 million) in the third 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 4.29 (US$ 0.67) in the third quarter ended September 30, 2011, down 24.6% from RMB 5.69 (US$ 0.84) in the same period of 2010 (for which period there was no non-GAAP adjustment).

Nine Months 2011 Results

Revenue for the nine months ended September 30, 2011 increased by 36.7% to RMB 1,087.1 million (US$ 167.5 million) compared to the nine months ended September 30, 2010. Gross profit was RMB 327.9 million (US$ 50.5 million), up 32.5% from RMB 247.5 million (US$ 36.3 million) in the nine months ended September 30, 2010. Gross margin was 30.2% compared to 31.1% in the same period of 2010. Selling expenses were RMB 8.7 million (US$ 1.3 million), compared to RMB 4.7 million (US$ 0.7 million) in the same period of 2010. Administrative expenses were RMB 33.9 million (US$ 5.2 million), compared to RMB 19.0 million (US$ 2.8 million) for the same period of 2010. Net profit for the nine months ended September 30, 2011 was RMB 202.3 million (US$ 31.2 million), up 22.6% from the same period of 2010. Non-GAAP net profit, which excludes share-based compensation expenses, was RMB 214.2 million (US$ 33.0 million) for the nine months ended September 30, 2011, an increase of 29.8% from RMB 165.0 million (US$ 24.2 million) in the same period of 2010 (for which period there was no non-GAAP adjustment). Earnings per fully diluted share were RMB 11.08 (US$ 1.71) for the nine months 2011 and RMB 11.73 (US$ 1.81) on a non-GAAP basis, down from RMB 15.73 (US$ 2.31) in the same period of 2010. Earnings per fully diluted share for the nine months 2011 were computed using 18.3 million shares while net earnings per fully diluted share for the nine months 2010 were computed using 10.5 million shares.

Third Quarter 2011 Statements of Selected Financial Position Items

  • Cash and bank balances were RMB 48.5 million (US$ 7.6 million) as of September 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 the Hengda facility as well as the continuation of its Phase II construction at the Hengdali facility during the nine months ended September 30, 2011.
  • Inventory turnover was 78 days as of September 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 increasing backlog of orders in 2011. Also, since the prices of raw materials have been increasing, the Company has stored up raw materials for future production.
  • Trade receivables turnover was 95 days as of September 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 September 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 79 days as of September 30, 2011 compared with 76 days as of December 31, 2010. The increase in the trade payables turnover resulted from more purchases of raw materials as the Company expected prices to increase further.
  • Bank borrowings (including both short-term borrowings and long-term borrowings) were RMB 195.0 million (US$ 30.6 million) as of September 30, 2011 compared to RMB 97.0 million (US$ 14.7 million) as of December 31, 2010. The increase in the bank borrowing was for working capital and to provide a better cash position in light of capital expenditure requirements.

Liquidity and Capital Resources

Cash flow generated from operating activities was RMB 70.0 million (US$ 10.8 million) for the quarter ended September 30, 2011, compared to RMB 66.6 million (US$ 9.8 million) of cash flow generated from operating activities in the same period in 2010. The year-over-year increase of RMB 3.4 million (US$ 1.0 million) was mainly due to the sales increase.

Cash flow used in investing activities in the quarter ended September 30, 2011 was RMB 131.0 million (US$ 20.4 million), compared to RMB 88.1 million (US$ 13.0 million) of cash flow used in investing activities in the same period of 2010. The increase was mainly due to an increase in the acquisition of property, plant and equipment. The capital expenditures related to the Hengdali facility was RMB 93.4 million (US$ 14.5 million) for the quarter ended September 30, 2011, as compared to RMB 48.4 million (US$ 7.1 million) in the same period of 2010 due to expenditures for facility expansion.

Cash flow generated from financing activities was RMB 58.0 million (US$ 9.0 million) obtained from bank borrowings for the quarter ended September 30, 2011, as compared to the repayment of bank borrowings of RMB 5.0 million (US$ 0.6 million) in the same period of 2010.

Recent Developments

During the third quarter of 2011, the Company's subsidiary, Jinjiang Hengda Ceramics Co., Ltd., was named a top 500 Enterprises of China Building Materials and a top 100 Fast Growing Enterprises for China Building Materials by the China Building Materials Enterprise Management Association.

Business Outlook

The Company's backlog of orders for delivery in the fourth quarter of 2011 is approximately RMB 345.6 million (US$ 54.2 million), representing a year-over-year growth rate of 26.6% compared to the fourth quarter of 2010. The Company estimates that its sales volume of ceramic tiles in the fourth quarter of 2011 will be approximately 12.5 million square meters.

Plant Expansion and Capital Expenditures Update

For the third quarter ended September 30, 2011, total capital expenditures for the Company were approximately RMB 133.4 million (US$ 20.8 million).  Of this amount, RMB 39.9 million (US$ 6.1 million) related to the Hengda facility, RMB 49.5 million (US$ 7.9 million) related to Phase II of the Hengdali facility and RMB 43.9 million (US$ 6.8 million) related to Phase III of the Hengdali facility, which is part of the Company's 2012 expansion plan.

For the nine months ended September 30, 2011, total capital expenditures for the Company were approximately RMB 377.8 million (US$ 58.2 million). Of this amount, approximately RMB 155.3 million (US$ 23.9 million) related to Hengda facility, RMB 170.5 million (US$ 26.3 million) related to Phase II of the Hengdali facility and RMB 52.0 million (US$ 8.0 million) related to Phase III of the Hengdali facility, which is part of the Company's 2012 expansion plan.  The Company is currently in the process of reviewing and updating its capital expenditure plan for fiscal year 2012.

The Company completed the expansion of the Hengda facility in the third quarter. The facility is now capable of producing 42 million square meters of ceramic tiles per year, up from 32 million square meters in the second quarter of 2011 and an increase from 28 million square meters as of December 31, 2010. The Hengdali facility is also expanding its production capacity, which is expected to be 30 million square meters per year of ceramic tiles by year end 2011 from its current capacity of 10 million square meters per year. After the completion of Phase II at Hengdali, together with the current capacity of the Hengda facility, China Ceramics expects to have a total annual production capacity of approximately 72 million square meters of ceramic tiles by the end of 2011. It is expected that the planned capacity expansion of Phase III at Hengdali will provide an additional 14 million square meters of ceramic tiles in 2013.

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.

Conference Call Information

The Company will host a conference call at 8:00 am ET on Monday, November 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 23278280. A replay of the conference call will be available for 14 days starting from 10:00 pm ET on Monday, November 14, 2011. To access the replay, dial +1 (855) 859-2056. International callers should dial +1 (404) 537-3406. The pass code is 23278280 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 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, 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.

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
September 30, 2011


As at 

December 31, 2010



(Unaudited)



ASSETS AND LIABILITIES










Non-current assets





Property, plant and equipment


804,310


459,161

Land use rights


31,434


31,936

Goodwill


3,735


3,735



839,479


494,832






Current assets





Inventories


256,477


177,217

Trade receivables


476,113


282,976

Prepayments and other receivables


15,434


8,907

Cash and bank balances


48,545


263,495



796,569


732,595






Current liabilities





Trade payables


259,640


178,382

Accrued liabilities and other payables


56,009


46,108

Interest-bearing bank borrowings


135,000


72,000

Income tax payable


28,074


22,576



478,723


319,066

Non-current liabilities





Long term borrowings


60,000


25,000

Deferred tax liabilities


1,095


1,122



61,095


26,122






Net current assets


317,846


413,529






Net assets


1,096,230


882,239






EQUITY





Total shareholders' equity


1,096,230


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


Nine months ended


September 30

June 30

September 30


September 30

September 30


2011

2011

2010


2011

2010








Revenue

406,934

372,323

294,088


1,087,122

795,501

Cost of Sales

(287,786)

(258,894)

(200,724)


(759,234)

(548,023)

Gross profit

119,148

113,429

93,364


327,888

247,478

Selling and distribution expenses

(3,143)

(3,062)

(1,738)


(8,739)

(4,732)

Administrative expenses

(8,690)

(9,570)

(7,268)


(33,880)

(19,026)

Finance costs

(3,126)

(2,297)

(1,652)


(7,296)

(4,626)

Other income

80

94

2,649


450

2,921

Other expenses

(1,922)

(740)

-


(3,354)

-

Profit before taxation

102,347

97,854

85,355


275,069

222,015

Income tax expense

(26,498)

(25,445)

(22,099)


(72,800)

(57,048)

Net Profit for the period

75,849

72,409

63,256


202,269

164,967

Attributable to:

Shareholders of the Company







EPS-Basic

4.16

3.97

5.69


11.08

15.73

EPS-Diluted

4.16

3.97

5.69


11.08

15.73

Shares used in calculating basic EPS







Basic

18,254,002

18,254,002

11,124,593


18,254,002

10,487,914

Diluted

18,254,002

18,254,002

11,124,593


18,254,002

10,487,914





CHINA CERAMICS CO., LTD. AND ITS SUBSIDIARIES

UNAUDITED SALES VOLUME AND AVERAGE SELLING PRICE


Three months ended


Nine months ended


September 30

June 30

September 30


September 30

September 30


2011

2011

2010


2011

2010








Sales volume (square meters)

14,643,786

13,734,874

11,359,920


39,807,905

30,789,236

Average Selling Price (in RMB/square meter)

27.8

27.1

25.9


27.3

25.8

Average Selling Price (in USD/square meter)

4.3

4.2

3.8


4.2

3.8




About Non-GAAP Financial Measures

In addition to China Ceramics' condensed consolidation financial results under International Financial Reporting Standards ("IFRS"), the Company also provides Non-IFRS financial measures (referred to as Non-GAAP financial measures) for the third 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 September 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

102,347

2,401

104,748


15,946

380

16,326

Net profit

75,849

2,401

78,250


11,816

380

12,196

EPS-Basic

4.16


4.29


0.65


0.67

EPS-Diluted

4.16


4.29


0.65


0.67



CHINA CERAMICS CO., LTD.

Unaudited Reconciliation of GAAP to Non-GAAP

Nine months ended September 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

275,069

11,919

286,988


42,390

1,837

44,227

Net profit

202,269

11,919

214,188


31,171

1,837

33,008

EPS-Basic

11.08


11.73


1.71


1.81

EPS-Diluted

11.08


11.73


1.71


1.81

(1) Share-based compensation.



* There were no similar Non-GAAP adjustments for the third quarter ended September 30, 2010 and the nine months ended September 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


Nine months ended


September

June

September


September

September


30

30

30


30

30


2011

2011

2010


2011

2010








Cash flows from operating activities







Profit before taxation

102,346

97,854

85,355


275,068

222,015

Adjustments for







Amortization of land use rights

167

168

168


502

501

Depreciation of property, plant

and equipment

13,261

11,309

8,182


33,388

21,667

Lose/(gain) on disposal of property,

plant and equipment

313

739

(219)


1,155

(357)

Share-based compensation

2,401

2,407

-


11,919

-

Finance costs

3,126

2,297

1,652


7,296

4,626

Interest income

(96)

(113)

(53)


(431)

(284)

Operating profit before working capital

changes

121,518

114,661

95,085


328,897

248,168

(Increase)/decrease in inventories

(938)

(41,697)

2,626


(79,260)

(24,091)

Increase in trade receivables

(40,495)

(94,909)

(26,997)


(193,137)

(94,277)

(Increase)/decrease in other

receivables and prepayments

3,272

(1,025)

906


(6,527)

3,446

Increase/(decrease) in trade payables

13,629

39,630

(11,971)


81,258

19,996

Increase in accrued liabilities and other payables

1,832

4,465

27,166


281

14,754

Cash generated from operations

98,818

21,125

86,815


131,521

167,996

Interest paid

(3,126)

(2,297)

(1,652)


(7,296)

(4,626)

Income tax paid

(25,708)

(16,718)

(18,548)


(67,328)

(49,681)








Net cash generated from operating activities

69,984

2,110

66,615


56,888

113,689








Cash flows from investing activities







Proceed from disposal of property,

plant and equipment

2,263

4,801

1,382


7,772

3,156

Acquisition of property, plant and

equipment

(133,381)

(80,223)

(89,512)


(377,845)

(195,805)

Interest received

96

113

53


431

284

Acquisition of subsidiary, net of cash

acquired

-

-

-


-

(36,311)








Net cash used in investing activities

(131,022)

(75,309)

(88,077)


(369,642)

(228,676)








Cash flows from financing activities







Bank borrowings obtained

68,800

71,200

35,800


140,000

72,700

Repayment of short-term loans

(10,800)

(31,200)

(40,800)


(42,000)

(59,500)

Purchase of warrants

-

-

-


-

(6,803)








Net cash generated from/(used in) financing activities

58,000

40,000

(5,000)


98,000

6,397








Net decrease in cash and cash

   equivalents

(3,038)

(33,199)

(26,462)


(214,754)

(108,590)

Cash and cash equivalents,

beginning of period

51,646

84,923

67,986


263,495

150,121

Effect of foreign exchange rate

differences

(63)

(78)

(46)


(196)

(53)








Cash and cash equivalents,

end of period

48,545

51,646

41,478


48,545

41,478





CHINA CERAMICS CO., LTD. AND ITS SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMEMTS OF FINANCIAL POSITION

(U.S Dollar in thousands)










As at
September 30, 2011


As at
December 31, 2010





ASSETS AND LIABILITIES








Non-current assets




Property, plant and equipment

126,107


69,570

Land use rights

4,929


4,839

Goodwill

586


566


131,622


74,975





Current assets




Inventories

40,213


26,851

Trade receivables

74,649


42,875

Prepayments and other receivables

2,420


1,350

Cash and bank balances

7,611


39,923


124,893


110,999





Current liabilities




Trade payables

40,709


27,028

Accrued liabilities and other payables

8,781


6,986

Interest-bearing bank borrowings

21,167


10,909

Income tax payable

4,402


3,421


75,059


48,344

Non-current liabilities




Long term borrowings

9,407


3,788

Deferred tax liabilities

172


170


9,579


3,958





Net current assets

49,834


62,655





Net assets

171,877


133,672





EQUITY




Total shareholders' equity

171,877


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


Nine months ended


September 30

June 30

September 30


September 30

September 30


2011

2011

2010


2011

2010








Revenue

63,397

57,306

43,342


167,533

116,704

Cost of Sales

(44,825)

(39,846)

(29,584)


(117,003)

(80,398)

Gross profit

18,572

17,460

13,758


50,530

36,306

Selling and distribution expenses

(490)

(472)

(256)


(1,347)

(694)

Administrative expenses

(1,364)

(1,481)

(1,071)


(5,221)

(2,791)

Finance costs

(486)

(353)

(244)


(1,124)

(679)

Other income

12

15

389


69

429

Other expenses

(298)

(114)

-


(517)

-

Profit before taxation

15,946

15,055

12,576


42,390

32,571

Income tax expense

(4,130)

(3,916)

(3,256)


(11,219)

(8,369)

Net Profit for the period

11,816

11,139

9,320


31,171

24,202

Attributable to:

Shareholders of the Company







EPS-Basic

0.65

0.61

0.84


1.71

2.31

EPS-Diluted

0.65

0.61

0.84


1.71

2.31

Shares used in calculating basic EPS







Basic

18,254,002

18,254,002

11,124,593


18,254,002

10,487,914

Diluted

18,254,002

18,254,002

11,124,593


18,254,002

10,487,914





CHINA CERAMICS CO., LTD. AND ITS SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S Dollar in thousands)






Three months ended


Nine months ended


September

June

September


September

September


30

30

30


30

30


2011

2011

2010


2011

2010








Cash flows from operating activities







Profit before taxation

15,946

15,055

12,576


42,390

32,571

Adjustments for







Amortization of land use rights

26

26

24


77

73

Depreciation of property, plant

and equipment

2,064

1,740

1,206


5,145

3,179

Lose/(gain) on disposal of property,

plant and equipment

49

113

(32)


178

(52)

Share-based compensation

380

375

-


1,837

-

Finance costs

486

353

244


1,124

679

Interest income

(15)

(17)

(8)


(66)

(42)

Operating profit before working capital

changes

18,936

17,645

14,010


50,685

36,408

(Increase)/decrease in inventories

(224)

(6,420)

375


(12,215)

(3,534)

Increase in trade receivables

(6,395)

(14,587)

(3,987)


(29,764)

(13,831)

(Increase)/decrease in other

receivables and prepayments

494

(165)

134


(1,006)

506

Increase/(decrease) in trade payables

2,168

6,095

(1,743)


12,522

2,934

Increase in accrued liabilities and other payables

280

678

3,980


43

2,164

Cash generated from operations

15,259

3,246

12,769


20,265

24,647

Interest paid

(486)

(353)

(244)


(1,124)

(679)

Income tax paid

(4,004)

(2,584)

(2,733)


(10,376)

(7,288)


 






Net cash generated from operating activities

10,769

309

9,792


8,765

16,680








Cash flows from investing activities







Proceed from disposal of property,

plant and equipment

355

735

203


1,198

463

Acquisition of property, plant and

equipment

(20,802)

(12,444)

(13,174)


(58,229)

(28,726)

Interest received

15

17

8


66

42

Acquisition of subsidiary, net of cash

acquired

-

-

-


-

(5,318)








Net cash used in investing activities

(20,432)

(11,692)

(12,963)


(56,965)

(33,539)








Cash flows from financing activities







Bank borrowings obtained

10,674

10,901

5,431


21,575

10,830

Repayment of short-term loans

(1,695)

(4,777)

(5,993)


(6,472)

(8,729)

Purchase of warrants

-

-

-


-

(996)








Net cash generated/(used in) from financing activities

8,979

6,124

(562)


15,103

1,105








Net decrease in cash and cash

equivalents

(684)

(5,259)

(3,733)


(33,097)

(15,754)

Cash and cash equivalents,

beginning of period

7,990

12,969

9,985


39,923

21,957

Effect of foreign exchange rate

differences

305

280

(59)


785

(10)








Cash and cash equivalents,

end of period

7,611

7,990

6,193


7,611

6,193




SOURCE China Ceramics Co., Ltd.



RELATED LINKS

http://www.cceramics.com