JINJIANG, China, March 7, 2012 /PRNewswire-Asia/ -- China Ceramics
Co., Ltd. (NASDAQ Global Market: CCCL, CCCLW, CCCLU) ("China
Ceramics" or the "Company"), a leading Chinese manufacturer of
ceramic tiles used for exterior siding and for interior flooring
and design in residential and commercial buildings, today announced
financial results for the fourth quarter and preliminary financial
results for the full year ended December
31, 2011.
Fourth Quarter 2011 Highlights
- Revenue was RMB 404.5 million
(US$ 63.8 million), up 48.1% from the
fourth quarter of 2010;
- Gross profit was RMB 139.4
million (US$ 21.9 million), up
52.3% from the fourth quarter of 2010;
- Gross profit margin was 34.5%, up 95 basis points from the
fourth quarter of 2010;
- Net profit was RMB 92.2 million
(US$ 14.5 million), up 52.4% from the
fourth quarter of 2010;
- On a quarter-to-quarter sequential basis, revenue was down
0.6%, gross profit was up 17.0% and net profit was up 21.5%;
- Non-GAAP net profit, which excludes the current quarter's
share-based compensation expenses, was RMB
97.5 million (US$ 15.3
million), up 61.2% from RMB 60.5
million (US$ 9.4 million) in
the fourth quarter of 2010 (for which period there was no non-GAAP
adjustment);
- Earnings per fully diluted share were RMB 4.51 (US$
0.71).
Full Year 2011 Highlights
- Revenue was RMB 1,491.6 million
(US$ 231.4 million), up 39.6% as
compared to full year 2010;
- Gross profit was RMB 467.2
million (US$ 72.5 million), up
37.8% as compared to full year 2010;
- Gross profit margin was 31.3%, down 40 basis points as compared
to full year 2010;
- Net profit was RMB 294.4 million
(US$ 45.7 million), up 30.6% as
compared to full year 2010;
- Non-GAAP net profit, which excludes the current quarter's
share-based compensation expenses, was RMB
311.7 million (US$ 48.4
million), up 38.2% from RMB 225.5
million (US$ 33.6 million) as
compared to full year 2010 (for which period there was no non-GAAP
adjustment);
- Earnings per fully diluted share were RMB 14.41 (US$
2.24).
"We are very pleased to report record operating and financial
results for the fourth quarter of 2011 as well as for the full year
2011. Our fourth quarter saw nearly full utilization of our
existing productive capacity, which demonstrates high customer
demand that we attribute to our diverse and distinctive ceramic
tile offerings. Our strong brand recognition, continued effective
marketing program and backlog of orders for the first quarter of
2012 offers encouragement for the year ahead," said Mr.
Jiadong Huang, CEO of China
Ceramics.
"Our annual production capacity of ceramic tiles is currently 52
million square meters, consisting of 42 million square meters from
our Hengda facility and 10 million square meters from our Hengdali
facility. We are expecting an additional 20 million square meters
of capacity at Hengdali by the second quarter of 2012, which would
increase our total annual production capacity to 72 million square
meters of ceramic tiles," continued Mr. Huang.
"The results of our capacity expansion plan and our year-to-year
financial comparisons are strong as we continue to execute our
strategic growth plan. In addition to full utilization of the
Hengdali facility, we expect to experience additional growth as we
improve the efficiency of our two facilities, expand our marketing
reach and continue to focus on high-end, high margin ceramic tile
products," concluded Mr. Huang.
Fourth Quarter 2011 Results
Revenue for the fourth quarter ended December 31, 2011 was RMB
404.5 million (US$ 63.8
million), up 48.1% from RMB 273.1
million (US$ 42.5 million)
from the fourth quarter ended December 31,
2010. The year-over-year increase in revenue was primarily
driven by a 22.8% increase in the sales volume of ceramic tiles to
12.4 million square meters in the fourth quarter of 2011 from 10.1
million square meters in the fourth quarter of 2010. In addition,
the average selling price increased in the fourth quarter of 2011
to RMB 32.7 per square meter compared
to RMB 27.0 per square meter in the
comparable quarter of 2010 due to a change in the sales mix, with
more sales coming from higher priced new rustic series ceramic
tiles which had been produced from our new Hengdali facility at
phase II during the preliminary production stage. We were able to
increase our sales volume due to the increased production capacity
at the Hengda facility together with our current capacity from the
Hengdali facility. The Hengdali facility Phase II expansion had its
preliminary production stage testing in November and December of
2011.
Gross profit for the fourth quarter ended December 31, 2011 was RMB
139.4 million (US$ 21.9
million), up 52.3% from RMB 91.5
million (US$ 14.2 million) for
the fourth quarter ended December 31,
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 34.5% for the fourth quarter ended December 31, 2011 compared to 33.5% for the same
period of 2010.
Selling and distribution expenses for the fourth quarter
ended December 31, 2011 were
RMB 3.1 million (US$ 0.5 million), or 0.8% of sales, compared to
RMB 2.4 million (US$ 0.4 million), or 0.9% of sales, in the fourth
quarter of 2010. The year-over-year increase in selling expenses
was primarily due to increased travel expenses of RMB 0.2 million (US$ 0.04
million) and labor cost of RMB 0.3
million (US$ 0.05
million).
Administrative expenses for the fourth quarter ended
December 31, 2011 were RMB 12.2 million (US$ 1.9
million), up 87.7% from RMB 6.5
million (US$ 1.0 million) in
the fourth quarter of 2010. The year-over-year increase in
administrative expenses was primarily due to RMB 5.4 million (US$ 0.8
million) of non-cash share-based compensation expenses
related to the 2010 Incentive Compensation Plan, which is designed
to retain directors and senior management. It is expected that
additional non-cash share-based compensation expenses of
approximately RMB 8.3 million
(US$ 1.3 million) will be incurred
from January 2012 to January 2014.
Profit before taxation for the fourth quarter ended
December 31, 2011 was RMB 125.4 million (US$
19.7 million), up 52.7% from RMB 82.1
million (US$ 12.7 million) in
the fourth quarter of 2010. The year-over-year increase in profit
before taxation was the result of higher gross profit partially
offset by higher selling and administrative expenses.
Net profit for the fourth quarter ended December 31, 2011 was RMB
92.2 million (US$ 14.5
million), up 52.4% from RMB 60.5
million (US$ 9.4 million) in
the same period of 2010. The year-over-year increase in net profit
was the result of higher gross profit, but offset by higher selling
and administrative expenses and income tax expenses.
Earnings per fully diluted share were RMB 4.51 (US$ 0.71)
for the fourth quarter ended December 31,
2011, up 21.6% from RMB 3.71
(US$ 0.58) over the same period in
2010. Earnings per fully diluted share in the fourth quarter of
2011 were computed using 20.4 million shares while net earnings per
fully diluted share in the fourth quarter of 2010 were computed
using 16.3 million shares.
Non-GAAP profit before taxation, which excludes
share-based compensation expenses, was RMB
130.8 million (US$ 20.6
million) in the fourth quarter ended December 31, 2011, up 59.3% from RMB 82.1 million (US$ 12.7
million) in 2010 (for which period there was no non-GAAP
adjustment).
Non-GAAP net profit, which excludes share-based
compensation expenses, was RMB 97.5
million (US$ 15.3 million) in
the fourth quarter ended December 31,
2011, an increase of 61.2% from RMB
60.5 million (US$ 9.4 million)
in the fourth 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
4.77 (US$ 0.75) in the fourth
quarter ended December 31, 2011, up
28.6% from RMB 3.71 (US$ 0.58) in the same period of 2010 (for which
period there was no non-GAAP adjustment).
Full Year 2011 Results
Revenue for the year ended December 31,
2011 increased by 39.6% to RMB
1,491.6 million (US$ 231.4
million) compared to the year ended December 31, 2010. Gross profit was RMB 467.2 million (US$
72.5 million), up 37.8% from RMB
339.0 million (US$ 50.5
million) in the year ended December
31, 2010. Gross margin was 31.3% compared to 31.7% in the
same period of 2010. Selling expenses were RMB 11.8 million (US$ 1.8
million), compared to RMB 7.2
million (US$ 1.1 million) in
the same period of 2010. Administrative expenses were RMB 46.1 million (US$ 7.1
million), compared to RMB 25.5
million (US$ 3.8 million) for
the same period of 2010. Net profit for the year ended December 31, 2011 was RMB
294.4 million (US$ 45.7
million), up 30.6% from the same period of 2010. Non-GAAP
net profit, which excludes share-based compensation expenses, was
RMB 311.7 million (US$ 48.4 million) for the year ended December 31, 2011, an increase of 38.2% from
RMB 225.5 million (US$ 33.6 million) in the same period of 2010 (for
which period there was no non-GAAP adjustment). Earnings per fully
diluted share were RMB 14.41
(US$ 2.24) for the year 2011 and
RMB 15.26 (US$
2.37) on a non-GAAP basis, down from RMB 16.96 (US$
2.53) in the same period of 2010. Earnings per fully diluted
share for the year 2011 were computed using 20.4 million shares
while net earnings per fully diluted share for the year 2010 were
computed using 13.3 million shares.
Fourth Quarter 2011 Statements of Selected Financial Position
Items
- Cash and bank balances were RMB 42.1
million (US$ 6.7 million) as
of December 31, 2011, compared with
RMB 263.5 million (US$ 39.9 million) as of December 31, 2010. The decrease in cash and bank
balances was attributed to the purchase of new kilns and production
lines to replace older manufacturing equipment at the Hengda
facility as well as the continuation of Phase II construction at
the Hengdali facility during the year ended December 31, 2011.
- Inventory turnover was 84 days as of December 31, 2011 compared with 73 days as of
December 31, 2010. The increase in
inventory turnover was mainly due to the increased balance of
finished goods in Hengdali as of December
31, 2011. The Hengdali facility Phase II expansion had its
preliminary production stage testing in November and December of
2011, which caused the increase in inventory.
- Trade receivables turnover was 93 days as of December 31, 2011 compared with 95 days as of
December 31, 2010. The Company's
trade receivables include a 17% value-added-tax ("VAT"), whereas
reported revenue is net of VAT. Trade receivables turnover
excluding VAT amounts was 79 days as of December 31, 2011 compared with 81 days as of
December 31, 2010. The trade
receivables turnover was flat for the quarter ended December 31, 2010 due to tight management control
over trade receivables collection.
- Trade payables turnover was 77 days as of December 31, 2011 compared with 76 days as of
December 31, 2010.
- Bank borrowings (including both short-term borrowings and
long-term borrowings) were RMB 185.0
million (US$ 29.4 million) as
of December 31, 2011 compared to
RMB 97.0 million (US$ 14.7 million) as of December 31, 2010. The bank borrowings were used
for working capital and the increase was to provide a better cash
position in light of capital expenditure requirements.
Liquidity and Capital Resources
Cash flow generated from operating activities was
RMB 67.3 million (US$ 10.5 million) for the quarter ended
December 31, 2011, compared to
RMB 90.6 million (US$ 13.7 million) of cash flow generated from
operating activities for the same period of 2010. The
year-over-year decrease of RMB 23.3
million (US$ 3.2 million) was
mainly due to the increase in income tax and the change in the
Company's method of settling sales rebates with its distributors.
The Company now issues rebates at the time of sale. Historically,
the Company had issued rebates at the time of collection of its
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 20.9
million (US$ 3.3 million) in
the fourth quarter of 2011 compared to the same quarter in
2010.
Cash flow used in investing activities in the quarter
ended December 31, 2011 was
RMB 63.7 million (US$ 10.3 million), compared to RMB 25.4 million (US$ 4.2
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 were RMB 63.8 million
(US$ 10.3 million) for the quarter
ended December 31, 2011 related to
the expansion of the Hengdali facility, as compared to RMB 26.4 million (US$ 4.4
million) in the same period of 2010 due to the replacement
of older manufacturing equipment at Hengda.
Cash flow used in financing activities was RMB 10.0 million (US$ 1.5
million) due to the repayment of bank borrowings for the
quarter ended December 31, 2011, as
compared to RMB 156.9 million
(US$ 23.4 million) generated from
financing activities for the same period of 2010, which was
primarily attributable to RMB 159.6
million (US$ 24.0 million)
generated from the issuance of new shares in 2010.
Business Outlook
The Company's backlog of orders for delivery in the first
quarter of 2012 is approximately RMB 372.6
million (US$ 59.2 million),
representing a year-over-year growth rate of 21.0% compared to the
first quarter of 2011. The Company estimates that its sales volume
of ceramic tiles in the first quarter of 2012 will be approximately
11.7 million square meters.
Plant Expansion and Capital Expenditures Update
For the fourth quarter ended December 31,
2011, total capital expenditures for the Company were
approximately RMB 63.8 million
(US$ 10.3 million). Of this amount,
RMB 49.5 million (US$ 7.8 million) related to Phase II of the
Hengdali facility and RMB 14.3
million (US$ 2.5 million)
related to Phase III of the Hengdali facility, which is part of the
Company's 2012 expansion plan.
For the year ended December 31,
2011, total capital expenditures for the Company were
approximately RMB 441.6 million
(US$ 68.5 million). Of this amount,
approximately RMB 155.3 million
(US$ 23.9 million) related to the
Hengda facility, RMB 220.0 million
(US$ 34.1 million) related to Phase
II of the Hengdali facility and RMB 66.3
million (US$ 10.5 million)
related to Phase III of the Hengdali facility.
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 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 the end of the second quarter 2012 from its
current capacity of 10 million square meters per year. The actual
production capacity of 2011 exceeds the current capacity by
approximately 4 million square meters due to the smooth running of
production and successful development of new products in phase II.
This provided Hengdali having approximately 14 million square
meters capacity in 2011. Since the fourth quarter of 2011, the
Hengdali facility has been in the testing stage in terms of
producing ceramic tiles and production is expected to begin by the
second quarter of 2012 after the power supply is ready from the
local power supply authority. 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
in 2012. 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's expected capital expenditures for 2012 will be
about $38 million, the majority of
which will be associated with the Phase III expansion of
Hengdali. Management regularly reviews the level of capital
expenditures spent throughout the year and may adjust its capital
expenditures subject to market conditions.
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.
2012 Recognition and Award
On February 7, 2012, China
Ceramics' Chief Executive Officer, Mr. Jiadong Huang was named as Gaoan Municipal 2011
Executive Role Model. Led by Mr. Huang, Jiangxi Hengdali Ceramics
Co., Ltd was the first ceramics company with facilities in Gaoan
city.
Conference Call Information
The Company will host a conference call at 8:00 am ET on Wednesday,
March 7, 2012. Listeners may access the call by dialing +1
(866) 395-5819 five to ten minutes prior to the scheduled
conference call time. International callers should dial +1 (706)
643-6986. The conference participant pass code is 57178750. A
replay of the conference call will be available for 14 days
starting from 11:00 pm EST on
March 7, 2012. To access the replay,
dial +1 (855) 859-2056. International callers should dial +1 (404)
537-3406. The pass code is 57178750 for the replay.
Upcoming Events
The Company will attend the upcoming 24th Annual Roth Conference
in Orange County, California. China Ceramics' CFO
Edmund Hen will be presenting at the
conference on March 13th, at
5:00 pm. Investors who
wish to meet with China Ceramics' CFO may contact ROTH Capital
Partners or the Company's U.S. Investor Relations representative,
David Rudnick at
david.rudnick@ccgir.com or +1 (646) 626-4172.
Annual Shareholders Meeting
The Board of Directors has authorized the Annual Shareholders
Meeting (ASM) to be held on May 16,
2012, at the offices of Loeb & Loeb, 345 Park Avenue,
NY, NY 10154, commencing at 9:15am,
EDT. The Record Date for determining shareholders who
will be able to vote at the ASM will be April 6, 2012.
About China Ceramics Co., Ltd
China Ceramics Co., Ltd. is a leading manufacturer of ceramic
tiles in China. The Company's
ceramic tiles are used for exterior siding, interior flooring, and
design in residential and commercial buildings. China Ceramics'
products, sold under the "Hengda" or "HD", "Hengdeli" or "HDL", the
"TOERTO" and "WULIQIAO" brands, and the "Pottery Capital of Tang
Dynasty" brands, are available in over 2,000 style, color and size
combinations and are distributed through a network of exclusive
distributors as well as directly to large property developers. For
more information, please visit http://www.cceramics.com.
Currency Convenience Translation
The Company's financial information is stated in Renminbi
("RMB"). The translation of RMB amounts into United States dollars in the earning release
is included solely for the convenience of readers. For statements
of financial position data, translation of RMB into U.S. dollars
has been made using historic spot exchange rates published by
www.federalreserve.gov. For statements of comprehensive income data
and statements of cash flows data, translation of RMB into U.S.
dollars has been made using the average of historical daily
exchange rates. Such translations should not be construed as
representations that RMB amounts could be converted into U.S.
dollars at that rate or any other rate, or to be the amounts that
would have been reported under IFRS.
Safe Harbor
Statement
Certain of the statements made in this press release are
"forward-looking statements" within the meaning and protections of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements include statements with respect to our
beliefs, plans, objectives, goals, expectations, anticipations,
assumptions, estimates, intentions, and future performance, and
involve known and unknown risks, uncertainties and other factors,
which may be beyond our control, and which may cause the actual
results, performance, capital, ownership or achievements of the
Company to be materially different from future results, performance
or achievements expressed or implied by such forward-looking
statements. All statements other than statements of historical fact
are statements that could be forward-looking statements. You can
identify these forward-looking statements through our use of words
such as "may," "will," "anticipate," "assume," "should,"
"indicate," "would," "believe," "contemplate," "expect,"
"estimate," "continue," "plan," "point to," "project," "could,"
"intend," "target" and other similar words and expressions of the
future.
All written or oral forward-looking statements attributable
to us are expressly qualified in their entirety by this cautionary
notice, including, without limitation, those risks and
uncertainties described in our annual report on Form 20-F for the
year ended December 31, 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
December 31,
2011
|
|
As at
December 31,
2010
|
|
|
(Unaudited)
|
|
|
ASSETS AND
LIABILITIES
|
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Property, plant and
equipment
|
|
843,429
|
|
459,161
|
Land use
rights
|
|
31,267
|
|
31,936
|
Goodwill
|
|
3,735
|
|
3,735
|
|
|
878,431
|
|
494,832
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Inventories
|
|
291,781
|
|
177,217
|
Trade
receivables
|
|
473,209
|
|
282,976
|
Prepayments and other
receivables
|
|
26,377
|
|
8,907
|
Cash and bank
balances
|
|
42,149
|
|
263,495
|
|
|
833,516
|
|
732,595
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Trade
payables
|
|
252,682
|
|
178,382
|
Accrued liabilities and
other payables
|
|
44,349
|
|
46,108
|
Interest-bearing bank
borrowings
|
|
125,000
|
|
72,000
|
Income tax
payable
|
|
35,090
|
|
22,576
|
|
|
457,121
|
|
319,066
|
Non-current
liabilities
|
|
|
|
|
Long term
borrowings
|
|
60,000
|
|
25,000
|
Deferred tax
liabilities
|
|
1,087
|
|
1,122
|
|
|
61,087
|
|
26,122
|
|
|
|
|
|
Net current
assets
|
|
376,395
|
|
413,529
|
|
|
|
|
|
Net
assets
|
|
1,193,739
|
|
882,239
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Total shareholders'
equity
|
|
1,193,739
|
|
882,239
|
CHINA CERAMICS CO.,
LTD. AND ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
(RMB in thousands,
except EPS and share data)
|
|
|
Three months
ended
|
|
Year
ended
|
|
December
31
|
September
30
|
December
31
|
|
December
31
|
December
31
|
|
2011
|
2011
|
2010
|
|
2011
|
2010
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Revenue
|
404,452
|
406,934
|
273,050
|
|
1,491,574
|
1,068,551
|
Cost of Sales
|
(265,102)
|
(287,786)
|
(181,553)
|
|
(1,024,336)
|
(729,576)
|
Gross profit
|
139,350
|
119,148
|
91,497
|
|
467,238
|
338,975
|
Selling and distribution
expenses
|
(3,093)
|
(3,143)
|
(2,444)
|
|
(11,832)
|
(7,176)
|
Administrative
expenses
|
(12,199)
|
(8,690)
|
(6,498)
|
|
(46,079)
|
(25,524)
|
Finance costs
|
(3,771)
|
(3,126)
|
(1,544)
|
|
(11,067)
|
(6,170)
|
Other
income/(expenses)
|
5,148
|
(1,842)
|
1,045
|
|
2,244
|
3,966
|
Profit before
taxation
|
125,435
|
102,347
|
82,056
|
|
400,504
|
304,071
|
Income tax
expense
|
(33,265)
|
(26,498)
|
(21,549)
|
|
(106,065)
|
(78,597)
|
Net Profit for the
period
|
92,170
|
75,849
|
60,507
|
|
294,439
|
225,474
|
Attributable
to:
Shareholders of the
Company
|
|
|
|
|
|
|
EPS-Basic
|
4.51
|
4.16
|
3.71
|
|
14.41
|
16.96
|
EPS-Diluted
|
4.51
|
4.16
|
3.71
|
|
14.41
|
16.96
|
Shares used in
calculating basic EPS
|
|
|
|
|
|
|
Basic
|
20,430,838
|
18,254,002
|
16,287,698
|
|
20,430,838
|
13,292,189
|
Diluted
|
20,430,838
|
18,254,002
|
16,287,698
|
|
20,430,838
|
13,292,189
|
CHINA CERAMICS CO.,
LTD. AND ITS SUBSIDIARIES
|
SALES VOLUME AND
AVERAGE SELLING PRICE
|
|
Three months
ended
|
|
Year
ended
|
|
December
31
|
September
30
|
December
31
|
|
December
31
|
December
31
|
|
2011
|
2011
|
2010
|
|
2011
|
2010
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Sales volume (square
meters)
|
12,355,462
|
14,643,786
|
10,110,484
|
|
52,163,367
|
40,899,720
|
Average Selling Price
(in RMB/square meter)
|
32.7
|
27.8
|
27.0
|
|
28.6
|
26.1
|
Average Selling Price
(in USD/square meter)
|
5.2
|
4.3
|
4.2
|
|
4.4
|
3.9
|
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 fourth quarter of 2011,
including Non-GAAP profit before taxation, Non-GAAP net income and
Non-GAAP earnings per fully diluted shares, all of which exclude
the share-based compensation expenses from their comparable 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
December 31, 2011
|
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
RMB'000
|
RMB'000
|
RMB'000
|
|
USD'000
|
USD'000
|
USD'000
|
Profit before
taxation
|
125,435
|
5,376
|
130,811
|
|
19,733
|
846
|
20,579
|
Net profit
|
92,170
|
5,376
|
97,546
|
|
14,500
|
846
|
15,346
|
EPS-Basic
|
4.51
|
|
4.77
|
|
0.71
|
|
0.75
|
EPS-Diluted
|
4.51
|
|
4.77
|
|
0.71
|
|
0.75
|
CHINA CERAMICS CO.,
LTD.
|
Unaudited
Reconciliation of GAAP to Non-GAAP
|
Year ended December
31, 2011
|
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
RMB'000
|
RMB'000
|
RMB'000
|
|
USD'000
|
USD'000
|
USD'000
|
Profit before
taxation
|
400,504
|
17,295
|
417,799
|
|
62,123
|
2,683
|
64,806
|
Net profit
|
294,439
|
17,295
|
311,734
|
|
45,671
|
2,683
|
48,354
|
EPS-Basic
|
14.41
|
|
15.26
|
|
2.24
|
|
2.37
|
EPS-Diluted
|
14.41
|
|
15.26
|
|
2.24
|
|
2.37
|
(1) Share-based compensation.
* There were no similar Non-GAAP adjustments for the
fourth quarter ended December 31,
2010 and the year ended December 31,
2010. Therefore, there was no reconciliation between the
GAAP financial measures and the Non-GAAP financial measures for
these two periods.
CHINA CERAMICS CO.,
LTD. AND ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(RMB in
thousands)
|
|
|
|
|
|
Three months
ended
|
|
Year
ended
|
|
December
|
September
|
December
|
|
December
|
December
|
|
31
|
30
|
31
|
|
31
|
31
|
|
2011
|
2011
|
2010
|
|
2011
|
2010
|
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
Profit before
taxation
|
125,435
|
102,346
|
82,056
|
|
400,504
|
304,071
|
Adjustments
for
|
|
|
|
|
|
|
Amortization of land use
rights
|
167
|
167
|
167
|
|
669
|
668
|
Depreciation of property,
plant
and equipment
|
15,022
|
13,261
|
8,528
|
|
48,410
|
30,195
|
Lose/(gain) on disposal of
property,
plant and equipment
|
-
|
313
|
(128)
|
|
1,155
|
(485)
|
Share-based
compensation
|
5,376
|
2,401
|
-
|
|
17,295
|
-
|
Finance costs
|
3,771
|
3,126
|
1,544
|
|
11,067
|
6,170
|
Interest income
|
(63)
|
(96)
|
(93)
|
|
(494)
|
(377)
|
Operating profit before
working capital
changes
|
149,708
|
121,518
|
92,074
|
|
478,606
|
340,242
|
Increase in
inventories
|
(35,304)
|
(938)
|
(26,995)
|
|
(114,564)
|
(51,086)
|
(Increase)/decrease in trade
receivables
|
2,904
|
(40,495)
|
82,141
|
|
(190,233)
|
(12,136)
|
(Increase)/decrease in
other
receivables and
prepayments
|
(10,943)
|
3,272
|
(8,069)
|
|
(17,470)
|
(4,623)
|
Increase/(decrease) in trade
payables
|
(6,957)
|
13,629
|
20,582
|
|
74,301
|
40,578
|
Increase/(decrease) in accrued
liabilities and other payables
|
(2,041)
|
1,832
|
(44,623)
|
|
(1,760)
|
(29,869)
|
Cash generated from
operations
|
97,367
|
98,818
|
115,110
|
|
228,880
|
283,106
|
Interest paid
|
(3,771)
|
(3,126)
|
(1,544)
|
|
(11,067)
|
(6,170)
|
Income tax paid
|
(26,258)
|
(25,708)
|
(23,014)
|
|
(93,586)
|
(72,695)
|
|
|
|
|
|
|
|
Net cash generated from
operating activities
|
67,338
|
69,984
|
90,552
|
|
124,227
|
204,241
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
Proceed from disposal of
property,
plant and equipment
|
-
|
2,263
|
936
|
|
7,772
|
4,092
|
Acquisition of property, plant
and
equipment
|
(63,760)
|
(133,381)
|
(26,441)
|
|
(441,605)
|
(222,246)
|
Interest received
|
63
|
96
|
93
|
|
494
|
377
|
Acquisition of subsidiary, net
of cash
acquired
|
-
|
-
|
-
|
|
-
|
(36,311)
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
(63,697)
|
(131,022)
|
(25,412)
|
|
(433,339)
|
(254,088)
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
Bank borrowings
obtained
|
33,000
|
68,800
|
-
|
|
173,000
|
72,700
|
Repayment of short-term
loans
|
(43,000)
|
(10,800)
|
(2,700)
|
|
(85,000)
|
(62,200)
|
Proceeds from issuance of
ordinary shares
|
-
|
-
|
159,551
|
|
-
|
159,551
|
Purchase of
warrants
|
-
|
-
|
-
|
|
-
|
(6,803)
|
|
|
|
|
|
|
|
Net cash generated
from/(used in) financing activities
|
(10,000)
|
58,000
|
156,851
|
|
88,000
|
163,248
|
|
|
|
|
|
|
|
Net
increase/(decrease) in cash and cash equivalents
|
(6,359)
|
(3,038)
|
221,991
|
|
(221,112)
|
113,401
|
Cash and cash
equivalents,
beginning of period
|
48,545
|
51,646
|
41,478
|
|
263,495
|
150,121
|
Effect of foreign exchange
rate
differences
|
(37)
|
(63)
|
26
|
|
(234)
|
(27)
|
|
|
|
|
|
|
|
Cash and cash
equivalents,
end of
period
|
42,149
|
48,545
|
263,495
|
|
42,149
|
263,495
|
CHINA CERAMICS CO.,
LTD. AND ITS SUBSIDIARIES
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMEMTS OF FINANCIAL POSITION
|
(U.S Dollar in
thousands)
|
|
|
|
|
|
|
|
|
|
As at
December 31,
2011
|
|
As at
December 31,
2010
|
|
|
|
|
ASSETS AND
LIABILITIES
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
Property, plant and
equipment
|
134,007
|
|
69,570
|
Land use
rights
|
4,968
|
|
4,839
|
Goodwill
|
593
|
|
566
|
|
139,568
|
|
74,975
|
|
|
|
|
Current
assets
|
|
|
|
Inventories
|
46,359
|
|
26,851
|
Trade
receivables
|
75,185
|
|
42,875
|
Prepayments and other
receivables
|
4,191
|
|
1,350
|
Cash and bank
balances
|
6,697
|
|
39,923
|
|
132,432
|
|
110,999
|
|
|
|
|
Current
liabilities
|
|
|
|
Trade
payables
|
40,147
|
|
27,028
|
Accrued liabilities and
other payables
|
7,047
|
|
6,986
|
Interest-bearing bank
borrowings
|
19,860
|
|
10,909
|
Income tax
payable
|
5,575
|
|
3,421
|
|
72,629
|
|
48,344
|
Non-current
liabilities
|
|
|
|
Long term
borrowings
|
9,533
|
|
3,788
|
Deferred tax
liabilities
|
173
|
|
170
|
|
9,706
|
|
3,958
|
|
|
|
|
Net current
assets
|
59,803
|
|
62,655
|
|
|
|
|
Net
assets
|
189,665
|
|
133,672
|
|
|
|
|
EQUITY
|
|
|
|
Total shareholders'
equity
|
189,665
|
|
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
|
|
Year
ended
|
|
December
31
|
September
30
|
December
31
|
|
December
31
|
December
31
|
|
2011
|
2011
|
2010
|
|
2011
|
2010
|
|
|
|
|
|
|
|
Revenue
|
63,828
|
63,397
|
42,474
|
|
231,361
|
159,178
|
Cost of Sales
|
(41,884)
|
(44,825)
|
(28,284)
|
|
(158,887)
|
(108,682)
|
Gross profit
|
21,944
|
18,572
|
14,190
|
|
72,474
|
50,496
|
Selling and distribution
expenses
|
(488)
|
(490)
|
(375)
|
|
(1,835)
|
(1,069)
|
Administrative
expenses
|
(1,926)
|
(1,364)
|
(1,011)
|
|
(7,147)
|
(3,802)
|
Finance costs
|
(593)
|
(486)
|
(240)
|
|
(1,717)
|
(919)
|
Other
income/(expenses)
|
796
|
(286)
|
162
|
|
348
|
591
|
Profit before
taxation
|
19,733
|
15,946
|
12,726
|
|
62,123
|
45,297
|
Income tax
expense
|
(5,233)
|
(4,130)
|
(3,339)
|
|
(16,452)
|
(11,708)
|
Net Profit for the
period
|
14,500
|
11,816
|
9,387
|
|
45,671
|
33,589
|
Attributable
to:
Shareholders of the
Company
|
|
|
|
|
|
|
EPS-Basic
|
0.71
|
0.65
|
0.58
|
|
2.24
|
2.53
|
EPS-Diluted
|
0.71
|
0.65
|
0.58
|
|
2.24
|
2.53
|
Shares used in
calculating basic EPS
|
|
|
|
|
|
|
Basic
|
20,430,838
|
18,254,002
|
16,287,698
|
|
20,430,838
|
13,292,189
|
Diluted
|
20,430,838
|
18,254,002
|
16,287,698
|
|
20,430,838
|
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
|
|
December
|
December
|
|
31
|
30
|
31
|
|
31
|
31
|
|
2011
|
2011
|
2010
|
|
2011
|
2010
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
Profit before
taxation
|
19,733
|
15,946
|
12,726
|
|
62,123
|
45,297
|
Adjustments
for
|
|
|
|
|
|
|
Amortization of land use
rights
|
27
|
26
|
27
|
|
104
|
100
|
Depreciation of property,
plant
and equipment
|
2,364
|
2,064
|
1,319
|
|
7,509
|
4,498
|
Lose/(gain) on disposal of
property,
plant and equipment
|
-
|
49
|
(20)
|
|
178
|
(72)
|
Share-based
compensation
|
846
|
380
|
-
|
|
2,683
|
-
|
Finance costs
|
593
|
486
|
240
|
|
1,717
|
919
|
Interest income
|
(11)
|
(15)
|
(14)
|
|
(77)
|
(56)
|
Operating profit before
working capital
Changes
|
23,552
|
18,936
|
14,278
|
|
74,237
|
50,686
|
Decrease in
inventories
|
(5,555)
|
(224)
|
(4,076)
|
|
(17,770)
|
(7,610)
|
(Increase)/decrease in trade
receivables
|
257
|
(6,395)
|
12,023
|
|
(29,507)
|
(1,808)
|
(Increase)/decrease in
other
receivables and
prepayments
|
(1,704)
|
494
|
(1,195)
|
|
(2,710)
|
(689)
|
Increase/(decrease) in trade
payables
|
(997)
|
2,168
|
3,111
|
|
11,525
|
6,045
|
Increase/(decrease) in
accrued
liabilities and other
payables
|
(316)
|
280
|
(6,613)
|
|
(273)
|
(4,449)
|
Cash generated from
operations
|
15,237
|
15,259
|
17,528
|
|
35,502
|
42,175
|
Interest paid
|
(593)
|
(486)
|
(240)
|
|
(1,717)
|
(919)
|
Income tax paid
|
(4,140)
|
(4,004)
|
(3,541)
|
|
(14,516)
|
(10,829)
|
|
|
|
|
|
|
|
Net cash generated
from operating activities
|
10,504
|
10,769
|
13,747
|
|
19,269
|
30,427
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
Proceed from disposal of
property,
plant and equipment
|
-
|
355
|
147
|
|
1,198
|
610
|
Acquisition of property, plant
and
Equipment
|
(10,269)
|
(20,802)
|
(4,381)
|
|
(68,498)
|
(33,107)
|
Interest received
|
11
|
15
|
14
|
|
77
|
56
|
Acquisition of subsidiary, net
of cash
Acquired
|
-
|
-
|
-
|
|
-
|
(5,318)
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
(10,258)
|
(20,432)
|
(4,220)
|
|
(67,223)
|
(37,759)
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
Bank borrowings
obtained
|
5,259
|
10,674
|
-
|
|
26,834
|
10,830
|
Repayment of short-term
loans
|
(6,713)
|
(1,695)
|
(537)
|
|
(13,185)
|
(9,266)
|
Proceeds from issuance of
ordinary shares
|
-
|
-
|
23,981
|
|
-
|
23,981
|
Purchase of
warrants
|
-
|
-
|
-
|
|
-
|
(996)
|
|
|
|
|
|
|
|
Net cash generated
from/(used in financing activities
|
(1,454)
|
8,979
|
23,444
|
|
13,649
|
24,549
|
|
|
|
|
|
|
|
Net
increase/(decrease) in cash and cash equivalents
|
(1,208)
|
(684)
|
32,971
|
|
(34,305)
|
17,217
|
Cash and cash
equivalents,
beginning of period
|
7,611
|
7,990
|
6,193
|
|
39,923
|
21,957
|
Effect of foreign
exchange rate
differences
|
294
|
305
|
759
|
|
1,079
|
749
|
|
|
|
|
|
|
|
Cash and cash
equivalents,
end of
period
|
6,697
|
7,611
|
39,923
|
|
6,697
|
39,923
|
SOURCE China Ceramics Co., Ltd.