JINJIANG, China, Aug. 15, 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 second quarter ended June 30, 2012.
Second Quarter 2012 Highlights
- Revenue was RMB 441.0 million
(US$ 69.5 million), up 18.5% from the
second quarter of 2011;
- Gross profit was RMB 128.6
million (US$ 20.3 million), up
13.4% from the second quarter of 2011;
- Gross profit margin was 29.2%, down 130 basis points from the
second quarter of 2011;
- Net profit was RMB 86.1 million
(US$ 13.6 million), up 18.9% from the
second quarter of 2011;
- On a quarter-to-quarter sequential basis, revenue was up 18.5%,
gross profit was up 13.8% and net profit was up 20.1%.
- Non-GAAP net profit, which excludes the current quarter's
share-based compensation expenses, was RMB
87.4 million (US$ 13.8
million), up 16.8% from RMB 74.8
million (US$ 11.5 million) in
the second quarter of 2011;
- Earnings per fully diluted share were RMB 4.21 (US$
0.66).
"We are pleased to report solid second quarter financial
performance, especially in light of the currently challenging
domestic market environment. The quarter's results were driven by
higher margin ceramic tile products manufactured with the
capabilities from our capacity plant expansion and reasonably sound
sales volume," said Mr. Jiadong
Huang, CEO of China Ceramics. "Our annual production
capacity of ceramic tiles is currently 72 million square meters,
out of which we are utilizing production facilities capable of
producing 56 million square meters per year. With the power now on
at our Hengdali facility, we will continue to monitor the
macroeconomic environment to determine when it would be prudent to
bring online additional production capacity as business conditions
dictate."
CEO Mr. Huang continued, "While the market environment has been
challenging, we will continue to innovate and offer the best
product mix to our customers relative to the market so as to
sustain our competitive advantage. With our new modern facilities,
we have the ability to operate efficiently and at a high level of
utilization. Going forward, we anticipate that our ability to
understand our customers and their needs will enable us penetrate
the Tier II and Tier III markets further and to generate continued
positive results."
Second Quarter 2012 Results
Revenue for the second quarter ended June 30, 2012 was RMB
441.0 million (US$ 69.5
million), up 18.5% from RMB 372.3
million (US$ 57.3 million) for
the second quarter ended June 30,
2011. The year-over-year increase in revenue was primarily
driven by a 19.9% increase in the average selling price of ceramic
tiles to RMB 32.5 per square meter in
the second quarter of 2012 from RMB
27.1 per square meter in the comparable quarter of 2011 due
to a change in the sales mix, with more sales coming from the
higher-priced rustic series of ceramic tiles that are being
produced in the Company's Hengdali facility.
Gross profit for the second quarter ended June 30, 2012 was RMB
128.6 million (US$ 20.3
million), up 13.4% from RMB 113.4
million (US$ 17.5 million) for
the second quarter ended June 30,
2011. The year-over-year increase in gross profit was mostly
driven by the higher average selling prices of our tiles in the
most recent quarter. Of the cost of sales for the second quarter
ended June 30, 2012, RMB 4.8 million (US$ 0.8
million) related to a provision for inventory that was
aging. Gross profit margin was 29.2% for the second quarter ended
June 30, 2012 compared to 30.5% for
the same period in 2011. The year-over-year decrease in gross
profit margin was driven by increased material cost, labor cost and
inventory provision.
Administrative expenses for the second quarter ended
June 30, 2012 were RMB 7.1 million (US$ 1.1
million), down 26.0% from RMB 9.6
million (US$ 1.5 million) in
the second quarter of 2011. The year-over-year decrease in
administrative expenses was primarily due to a reduction to
RMB 1.3 million (US$ 0.2 million) of non-cash share-based
compensation expenses related to the 2010 Incentive Compensation
Plan, which is designed to retain directors and senior management.
The comparable non-cash share-based expenses were RMB 2.4 million (US$ 0.4
million) in the same period in 2011. It is expected that
additional non-cash share-based compensation expenses of
approximately RMB 5.1 million
(US$ 0.8 million) will be incurred
from July 2012 to January 2014.
Profit before taxation for the second quarter ended
June 30, 2012 was RMB 115.6 million (US$
18.2 million), up 18.1% from RMB 97.9
million (US$ 15.1 million) in
the second quarter of 2011. The year-over-year increase in profit
from operations was the result of higher gross profit as well as
lower administrative expenses.
Net profit for the second quarter ended June 30, 2012 was RMB 86.1
million (US$ 13.6 million), up
18.9% from RMB 72.4 million
(US$ 11.1 million) in the same period
of 2011. The year-over-year increase in net profit was the result
of higher gross profit as well as the aforementioned lower
administrative expenses.
Earnings per fully diluted share were RMB 4.21 (US$ 0.66)
for the second quarter ended June 30,
2012, up 6.0% from RMB 3.97
(US$ 0.61) over the same period in
2011. Earnings per fully diluted share in the second quarter of
2012 were computed using 20.4 million shares, while net earnings
per fully diluted share in the second quarter of 2011 were computed
using 18.3 million shares.
Non-GAAP profit before taxation, which excludes
share-based compensation expenses, was RMB
117.0 million (US$ 18.4
million) in the second quarter ended June 30, 2012, up 16.7% from RMB 100.3 million (US$
15.4 million) in 2011.
Non-GAAP net profit, which excludes share-based
compensation expenses, was RMB 87.4
million (US$ 13.8 million) in
the second quarter ended June 30,
2012, an increase of 16.8% from 74.8 million (US$ 11.5 million) in the second quarter of
2011.
Non-GAAP earnings per fully diluted share, which excludes
share-based compensation expenses, was RMB
4.28 (US$ 0.67) in the second
quarter ended June 30, 2012, up 4.4%
from RMB 4.10 (US$ 0.63) in the same period of 2011.
Six Months 2012 Results
Revenue for the six months ended June 30,
2012 increased by 19.6% to RMB 813.3
million (US$ 128.6 million)
compared to the six months ended June 30,
2011. Gross profit was RMB 241.6
million (US$ 38.2 million), up
15.8% from RMB 208.7 million
(US$ 32.0 million) in the six months
ended June 30, 2011. Gross margin
was 29.7% compared to 30.7% in the same period of 2011. Selling
expenses were RMB 5.8 million
(US$ 0.9 million), compared to
RMB 5.6 million (US$ 0.9 million) in the same period of 2011.
Administrative expenses were RMB 16.7
million (US$ 2.6 million),
compared to RMB 25.2 million
(US$ 3.9 million) for the same period
of 2011. Net profit for the six months ended June 30, 2012 was RMB
157.7 million (US$ 24.9
million), up 24.8% from the same period of 2011. Non-GAAP
net profit, which excludes share-based compensation expenses, was
RMB 160.8 million (US$ 25.4 million) for the six months ended
June 30, 2012, an increase of 18.3%
from RMB 135.9 million (US$ 20.8 million) in the same period of 2011.
Earnings per fully diluted share were RMB
7.72 (US$ 1.22) for the six
months ended June 30, 2012 and
RMB 7.87 (US$
1.24) on a non-GAAP basis, up from RMB 6.93 (US$ 1.06)
and RMB 7.45 (US$ 1.14) on a non-GAAP basis in the same period
of 2011. Earnings per fully diluted share for the first half of
2012 were computed using 20.4 million shares while net earnings per
fully diluted share for the first half of 2011 were computed using
18.3 million shares.
Second Quarter 2012 Statements of Selected Financial Position
Items
- Cash and bank balances were RMB 78.3
million (US$ 12.3 million) as
of June 30, 2012, compared with
RMB 42.1 million (US$ 6.7 million) as of December 31, 2011. The increase in cash and bank
balances was the result of sustained revenues and no capital
expenditures during the quarter ended June
30, 2012.
- Inventory turnover was 99 days as of June 30, 2012 compared with 84 days as of
December 31, 2011. The increase in
inventory turnover reflects a normal pattern when we introduce a
new series of ceramic tiles, which would temporarily be slower
moving as we produce a certain amount of the tiles to have
available for developers to test, while thereafter the new series
would only be produced in accordance with actual customer
orders.
- Trade receivables turnover was 109 days as of June 30, 2012 compared with 93 days as of
December 31, 2011. The Company's
trade receivables include a 17% value-added-tax ("VAT"), whereas
reported revenue is net of VAT. Trade receivables turnover
excluding VAT amounts was 94 days as of June
30, 2012 compared with 79 days as of December 31, 2011. The average turnover days were
within the Company's past normal collection range period.
- Trade payables turnover was 81 days as of June 30, 2012 compared with 77 days as of
December 31, 2011. The average
turnover days were within the Company's normal credit period.
Liquidity and Capital Resources
Cash flow generated from operating activities was
RMB 52.0 million (US$ 8.2 million) for the quarter ended
June 30, 2012, compared to
RMB 2.1 million (US$ 0.3 million) of cash flow generated from
operating activities in the same period in 2011. The year-over-year
increase of RMB 49.9 million
(US$ 7.9 million) was mainly due to
the increase in revenue.
Cash flow generated from investing activities in the
quarter ended June 30, 2012 was
RMB 0.1 million (US$ 0.02 million) due from interest received,
compared to RMB 75.3 million
(US$ 11.7 million) of cash flow used
in investing activities in the same period of 2011, which was
primarily due to the acquisition of property, plant and
equipment.
Cash flow used in financing activities was RMB 50.0 million (US$ 7.9
million) due to the repayment of bank borrowings for the
quarter ended June 30, 2012, as
compared to RMB 40.0 million
(US$ 6.1 million) for the quarter
ended June 30, 2011
Plant Expansion and Capital Expenditures Update
The Company's Hengda facility has an annual production capacity
of 42 million square meters of ceramic tiles, having undergone a
facility expansion and other capital improvements in fiscal 2010
and fiscal 2011. China Ceramics is currently utilizing the full
productive capacity at its Hengda facility. The Company's Hengdali
facility underwent Phase II of its expansion program in the fourth
quarter of 2011 and the first quarter of 2012, which increased its
annual production capacity of ceramic tiles from 10 million square
meters to 30 million square meters. However, consistent with our
previously stated plan to bring online additional capacity at the
facility as determined by market demand, the Company is currently
utilizing plant facilities at Hengdali capable of producing only 14
million square meters of ceramic tiles annually. In total, the
Company is utilizing annual production capacity of 56 million
square meters out of a potential annual productive capacity of 72
million square meters of ceramic tiles.
Management reviews the levels of capital expenditures throughout
the year and makes adjustments to its capital expenditures subject
to market conditions. The Company had no capital expenditures in
the first and second quarters of 2012. Whether the Company engages
in capital expenditures in the second half of 2012 will be subject
to the business outlook at that time. Management has determined to
delay the further expansion of the Hengdali facility that had been
previously planned (which would have increased production capacity
by an additional 14 million square meters of ceramic tiles
annually) given current business conditions.
Business Outlook
China Ceramics generated solid year-to-year operating results in
the second quarter of 2012 attributable to a continued improvement
in its product mix as the Company's business continues to
transition from lower margin tiles products to higher margin, more
advanced and better performing ceramic tiles. The products being
produced at its Hengdali facility, in particular, enabled China
Ceramics to increase its average selling prices by 19.9% in the
second quarter relative to the comparable year-ago quarter
following similar year-ago comparisons in the previous two
quarters. An improved product mix led to solid revenue and earnings
growth and cash flow generation in the second quarter, though at a
somewhat less robust rate than occurred in previous same period
year-to-year comparisons. As indicated, the Company's financial
results in future periods may not improve at the same rate as in
past periods due to the Company's rapid facility expansion in the
last couple of years. Further, the slowing economy in China is likely to have an adverse effect on
the demand for the Company's products.
In the second quarter of 2012, the Company's sales volume (the
amount of square meters of ceramic tile sold) fell by 1.2%, which
the Company attributes to a slowdown in construction activity and
real estate development in China.
This follows only a modest increase in sales volume of 2.5% in the
first quarter of 2012. The Company anticipates that a possible
slowing of its sales volume could continue in 2012 caused by the
overall slowing in economic conditions in China. The sales volume in the second quarter
of 2012 represented a 15.8% increase from that of the first quarter
of 2012, which is attributable to the seasonality of the Company's
business, consistent with the trend of past years. The current
utilization of the Company's two plant facilities based on the
production capacity divided by the amount of "on-line" production
capacity (56 million square meters annually) is currently 96.3%,
which is indicative of the efficiency of production capacity
currently in use.
The Company's backlog of orders for delivery in the third
quarter of 2012 is approximately RMB 385.9
million (US$ 60.7 million),
representing a year-over-year decrease of 5.2% compared to the
third quarter of 2011. This year-over-year comparison is
significantly changed from that of previous quarters reflecting the
impact of weaker customer demand. The Company estimates that its
sales volume of ceramic tiles in the third quarter of 2012 will be
approximately 12.2 million square meters.
Given the slowdown in domestic demand, the Company believes it
unlikely that it will bring online the unused production capacity
at its Hengdali facility until macroeconomic conditions change, and
that its annual production capacity will remain at its current
level of 56 million square meters of ceramic tiles for the
remainder of 2012.
To mitigate the effects of slowing demand, the Company will
maintain its currently wide range of product offerings and augment
it with new products from its research and development program,
which has the potential to result in products that realize higher
margins. The Company believes that a core competitive advantage is
its ability to innovate and introduce new products into the product
mix that it offers to its customers. China Ceramics' new plant
facilities also offer new design and production capabilities as
well as the ability to operate more efficiently.
In addition, the Company plans to expand its distribution
network and heighten its direct sales efforts to large developers.
The Company will continue to focus on Tier II and Tier III cities
where it believes conditions are generally more stable relative to
more volatile Tier I cities.
Conference Call Information
The Company will host a conference call at 8:00 am ET on Wednesday,
August 15, 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 17678224. A
replay of the conference call will be available for 14 days
starting from 11:00 pm ET on
August 15, 2012. To access the
replay, dial +1 (855) 859-2056. International callers should dial
+1 (404) 537-3406. The pass code is 17678224 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, 2011 and
otherwise in our SEC reports and filings, including the final
prospectus for our offering. Such reports are available upon
request from the Company, or from the Securities and Exchange
Commission, including through the SEC's Internet website at
http://www.sec.gov. We have no obligation and do not undertake to
update, revise or correct any of the forward-looking statements
after the date hereof, or after the respective dates on which any
such statements otherwise are made.
Contact
Information:
|
|
China Ceramics Co.,
Ltd.
|
CCG Investor Relations
Inc.
|
Edmund Hen, Chief
Financial Officer
|
David Rudnick, Account
Manager
|
Email:
info@cceramics.com
|
Email:
david.rudnick@ccgir.com
|
|
Phone:
+1-646-626-4172
|
FINANCIAL TABLES FOLLOW
CHINA CERAMICS CO.,
LTD. AND ITS SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
(RMB in
thousands)
|
|
|
|
|
|
|
|
As at
June 30,
2012
|
|
As at
December 31,
2011
|
|
|
(Unaudited)
|
|
|
ASSETS AND
LIABILITIES
|
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Property, plant and
equipment
|
|
810,568
|
|
843,429
|
Land use
rights
|
|
30,932
|
|
31,267
|
Goodwill
|
|
3,735
|
|
3,735
|
Deferred tax
asset
|
|
1,460
|
|
-
|
|
|
846,695
|
|
878,431
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Inventories
|
|
334,146
|
|
291,781
|
Trade
receivables
|
|
515,959
|
|
473,209
|
Prepayments and other
receivables
|
|
7,937
|
|
26,377
|
Cash and bank
balances
|
|
78,274
|
|
42,149
|
|
|
936,316
|
|
833,516
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Trade
payables
|
|
257,243
|
|
252,682
|
Accrued liabilities and
other payables
|
|
48,362
|
|
44,349
|
Interest-bearing bank
borrowings
|
|
35,000
|
|
125,000
|
Income tax
payable
|
|
26,767
|
|
35,090
|
|
|
367,372
|
|
457,121
|
Non-current
liabilities
|
|
|
|
|
Long term
borrowings
|
|
60,000
|
|
60,000
|
Deferred tax
liabilities
|
|
1,069
|
|
1,087
|
|
|
61,069
|
|
61,087
|
|
|
|
|
|
Net current
assets
|
|
568,944
|
|
376,395
|
|
|
|
|
|
Net
assets
|
|
1,354,570
|
|
1,193,739
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Total shareholders'
equity
|
|
1,354,570
|
|
1,193,739
|
CHINA CERAMICS CO.,
LTD. AND ITS SUBSIDIARIES
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
(RMB in thousands,
except EPS and share data)
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30
|
March
31
|
June
30
|
|
June
30
|
June
30
|
|
2012
|
2012
|
2011
|
|
2012
|
2011
|
|
|
|
|
|
|
|
Revenue
|
440,991
|
372,288
|
372,323
|
|
813,279
|
680,188
|
Cost of Sales
|
(312,370)
|
(259,280)
|
(258,894)
|
|
(571,650)
|
(471,448)
|
Gross profit
|
128,621
|
113,008
|
113,429
|
|
241,629
|
208,740
|
Selling and distribution
expenses
|
(2,834)
|
(2,962)
|
(3,062)
|
|
(5,796)
|
(5,596)
|
Administrative
expenses
|
(7,138)
|
(9,593)
|
(9,570)
|
|
(16,731)
|
(25,190)
|
Finance costs
|
(2,771)
|
(3,570)
|
(2,297)
|
|
(6,341)
|
(4,170)
|
Other
expenses
|
(237)
|
(246)
|
(646)
|
|
(483)
|
(1,062)
|
Profit before
taxation
|
115,641
|
96,637
|
97,854
|
|
212,278
|
172,722
|
Income tax
expense
|
(29,575)
|
(24,966)
|
(25,445)
|
|
(54,541)
|
(46,302)
|
Net Profit for the
period
|
86,066
|
71,671
|
72,409
|
|
157,737
|
126,420
|
Attributable
to:
Shareholders of the
Company
|
|
|
|
|
|
|
EPS-Basic
|
4.21
|
3.51
|
3.97
|
|
7.72
|
6.93
|
EPS-Diluted
|
4.21
|
3.51
|
3.97
|
|
7.72
|
6.93
|
Shares used in
calculating basic EPS
|
|
|
|
|
|
|
Basic
|
20,430,838
|
20,430,838
|
18,254,002
|
|
20,430,838
|
18,254,002
|
Diluted
|
20,430,838
|
20,430,838
|
18,254,002
|
|
20,430,838
|
18,254,002
|
CHINA CERAMICS CO.,
LTD. AND ITS SUBSIDIARIES
|
SALES VOLUME AND
AVERAGE SELLING PRICE
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30
|
March
31
|
June
30
|
|
June
30
|
June
30
|
|
2012
|
2012
|
2011
|
|
2012
|
2011
|
|
|
|
|
|
|
|
Sales volume (square
meters)
|
13,567,038
|
11,719,104
|
13,734,874
|
|
25,286,142
|
25,164,119
|
Average Selling Price
(in RMB/square meter)
|
32.5
|
31.8
|
27.1
|
|
32.2
|
27.0
|
Average Selling Price
(in USD/square meter)
|
5.1
|
5.0
|
4.2
|
|
5.1
|
4.1
|
CHINA CERAMICS CO.,
LTD. AND ITS SUBSIDIARIES
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(RMB in
thousands)
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
|
March
|
June
|
|
June
|
June
|
|
30
|
31
|
30
|
|
30
|
30
|
|
2012
|
2012
|
2011
|
|
2012
|
2011
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
Profit before
taxation
|
115,641
|
96,637
|
97,854
|
|
212,278
|
172,722
|
Adjustments
for
|
|
|
|
|
|
|
Amortization of land use
rights
|
168
|
167
|
168
|
|
335
|
335
|
Depreciation of property,
plant
and equipment
|
16,413
|
16,448
|
11,309
|
|
32,861
|
20,127
|
Loss on disposal of
property,
plant and equipment
|
-
|
-
|
739
|
|
-
|
842
|
Provision for
inventory
|
4,805
|
1,035
|
-
|
|
5,840
|
-
|
Share-based
compensation
|
1,310
|
1,761
|
2,407
|
|
3,071
|
9,518
|
Finance costs
|
2,520
|
3,570
|
2,297
|
|
6,090
|
4,170
|
Interest income
|
(116)
|
(103)
|
(113)
|
|
(219)
|
(335)
|
Operating profit before
working capital
changes
|
140,741
|
119,515
|
114,661
|
|
260,256
|
207,379
|
Increase in
inventories
|
(5,341)
|
(42,864)
|
(41,697)
|
|
(48,205)
|
(78,322)
|
(Increase)/decrease in trade
receivables
|
(77,282)
|
34,532
|
(94,909)
|
|
(42,750)
|
(152,642)
|
(Increase)/decrease in
other
receivables and
prepayments
|
11,622
|
6,818
|
(1,025)
|
|
18,440
|
(9,799)
|
Increase/(decrease) in trade
payables
|
10,733
|
(6,173)
|
39,630
|
|
4,560
|
67,629
|
Increase/(decrease) in accrued
liabilities and other payables
|
1,340
|
2,940
|
4,465
|
|
4,280
|
(1,551)
|
Cash generated from
operations
|
81,813
|
114,768
|
21,125
|
|
196,581
|
32,694
|
Interest paid
|
(2,771)
|
(3,586)
|
(2,297)
|
|
(6,357)
|
(4,170)
|
Income tax paid
|
(27,001)
|
(37,340)
|
(16,718)
|
|
(64,341)
|
(41,620)
|
|
|
|
|
|
|
|
Net cash generated
from/(used in)
operating
activities
|
52,041
|
73,842
|
2,110
|
|
125,883
|
(13,096)
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
Proceed from disposal of
property,
plant and equipment
|
-
|
-
|
4,801
|
|
-
|
5,509
|
Acquisition of property, plant
and
equipment
|
-
|
-
|
(80,223)
|
|
-
|
(244,464)
|
Interest received
|
116
|
103
|
113
|
|
219
|
335
|
|
|
|
|
|
|
|
Net cash generated
from/(used in) investing activities
|
116
|
103
|
(75,309)
|
|
219
|
(238,620)
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
Bank borrowings
obtained
|
-
|
-
|
71,200
|
|
-
|
71,200
|
Repayment of short-term
loans
|
(50,000)
|
(40,000)
|
(31,200)
|
|
(90,000)
|
(31,200)
|
|
|
|
|
|
|
|
Net cash generated
from/(used in) financing activities
|
(50,000)
|
(40,000)
|
40,000
|
|
(90,000)
|
40,000
|
|
|
|
|
|
|
|
Net
increase/(decrease) in cash and cash equivalents
|
2,157
|
33,945
|
(33,199)
|
|
36,102
|
(211,716)
|
Cash and cash
equivalents,
beginning of period
|
76,091
|
42,149
|
84,923
|
|
42,149
|
263,495
|
Effect of foreign exchange
rate
differences
|
26
|
(3)
|
(78)
|
|
23
|
(133)
|
|
|
|
|
|
|
|
Cash and cash
equivalents,
end of
period
|
78,274
|
76,091
|
51,646
|
|
78,274
|
51,646
|
CHINA CERAMICS CO.,
LTD. AND ITS SUBSIDIARIES
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMEMTS OF FINANCIAL POSITION
|
(U.S Dollar in
thousands)
|
|
|
|
|
|
|
|
|
|
As at
June 30,
2012
|
|
As at
December 31,
2011
|
|
|
|
|
ASSETS AND
LIABILITIES
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
Property, plant and
equipment
|
127,588
|
|
134,007
|
Land use
rights
|
4,869
|
|
4,968
|
Goodwill
|
588
|
|
593
|
Deferred tax
asset
|
230
|
|
-
|
|
133,275
|
|
139,568
|
|
|
|
|
Current
assets
|
|
|
|
Inventories
|
52,597
|
|
46,359
|
Trade
receivables
|
81,215
|
|
75,185
|
Prepayments and other
receivables
|
1,249
|
|
4,191
|
Cash and bank
balances
|
12,321
|
|
6,697
|
|
147,382
|
|
132,432
|
|
|
|
|
Current
liabilities
|
|
|
|
Trade
payables
|
40,492
|
|
40,147
|
Accrued liabilities and
other payables
|
7,612
|
|
7,047
|
Interest-bearing bank
borrowings
|
5,509
|
|
19,860
|
Income tax
payable
|
4,213
|
|
5,575
|
|
57,826
|
|
72,629
|
Non-current
liabilities
|
|
|
|
Long term
borrowings
|
9,444
|
|
9,533
|
Deferred tax
liabilities
|
168
|
|
173
|
|
9,612
|
|
9,706
|
|
|
|
|
Net current
assets
|
89,556
|
|
59,803
|
|
|
|
|
Net
assets
|
213,219
|
|
189,665
|
|
|
|
|
EQUITY
|
|
|
|
Total shareholders'
equity
|
213,219
|
|
189,665
|
CHINA CERAMICS CO.,
LTD. AND ITS SUBSIDIARIES
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
(U.S Dollar in
thousands, except EPS and share data)
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
30
|
March
31
|
June
30
|
|
June
30
|
June
30
|
|
2012
|
2012
|
2011
|
|
2012
|
2011
|
|
|
|
|
|
|
|
Revenue
|
69,479
|
59,134
|
57,306
|
|
128,613
|
104,136
|
Cost of Sales
|
(49,217)
|
(41,184)
|
(39,846)
|
|
(90,401)
|
(72,178)
|
Gross profit
|
20,262
|
17,950
|
17,460
|
|
38,212
|
31,958
|
Selling and distribution
expenses
|
(447)
|
(470)
|
(472)
|
|
(917)
|
(857)
|
Administrative
expenses
|
(1,123)
|
(1,523)
|
(1,481)
|
|
(2,646)
|
(3,857)
|
Finance costs
|
(436)
|
(567)
|
(353)
|
|
(1,003)
|
(638)
|
Other
expenses
|
(37)
|
(39)
|
(99)
|
|
(76)
|
(162)
|
Profit before
taxation
|
18,219
|
15,351
|
15,055
|
|
33,570
|
26,444
|
Income tax
expense
|
(4,659)
|
(3,966)
|
(3,916)
|
|
(8,625)
|
(7,089)
|
Net Profit for the
period
|
13,560
|
11,385
|
11,139
|
|
24,945
|
19,355
|
Attributable
to:
Shareholders of the
Company
|
|
|
|
|
|
|
EPS-Basic
|
0.66
|
0.56
|
0.61
|
|
1.22
|
1.06
|
EPS-Diluted
|
0.66
|
0.56
|
0.61
|
|
1.22
|
1.06
|
Shares used in
calculating basic EPS
|
|
|
|
|
|
|
Basic
|
20,430,838
|
20,430,838
|
18,254,002
|
|
20,430,838
|
18,254,002
|
Diluted
|
20,430,838
|
20,430,838
|
18,254,002
|
|
20,430,838
|
18,254,002
|
|
|
|
|
|
|
|
|
CHINA CERAMICS CO.,
LTD. AND ITS SUBSIDIARIES
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(U.S Dollar in
thousands)
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
June
|
March
|
June
|
|
June
|
June
|
|
30
|
31
|
30
|
|
30
|
30
|
|
2012
|
2012
|
2011
|
|
2012
|
2011
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
Profit before
taxation
|
18,219
|
15,351
|
15,055
|
|
33,570
|
26,444
|
Adjustments
for
|
|
|
|
|
|
|
Amortization of land use
rights
|
26
|
27
|
26
|
|
53
|
51
|
Depreciation of property,
plant
and equipment
|
2,584
|
2,613
|
1,740
|
|
5,197
|
3,081
|
Loss on disposal of
property,
plant and equipment
|
-
|
-
|
113
|
|
-
|
129
|
Provision for
inventory
|
760
|
164
|
-
|
|
924
|
-
|
Share-based
compensation
|
206
|
280
|
375
|
|
486
|
1,457
|
Finance costs
|
396
|
567
|
353
|
|
963
|
638
|
Interest income
|
(19)
|
(16)
|
(17)
|
|
(35)
|
(51)
|
Operating profit before
working capital
changes
|
22,172
|
18,986
|
17,645
|
|
41,158
|
31,749
|
Increase in
inventories
|
(815)
|
(6,808)
|
(6,420)
|
|
(7,623)
|
(11,991)
|
(Increase)/decrease in trade
receivables
|
(12,246)
|
5,485
|
(14,587)
|
|
(6,761)
|
(23,369)
|
(Increase)/decrease in
other
receivables and
prepayments
|
1,833
|
1,083
|
(165)
|
|
2,916
|
(1,500)
|
Increase/(decrease) in trade
payables
|
1,702
|
(981)
|
6,095
|
|
721
|
10,354
|
Increase/(decrease) in accrued
liabilities and other payables
|
210
|
467
|
678
|
|
677
|
(237)
|
Cash generated from
operations
|
12,856
|
18,232
|
3,246
|
|
31,088
|
5,006
|
Interest paid
|
(435)
|
(570)
|
(353)
|
|
(1,005)
|
(638)
|
Income tax paid
|
(4,244)
|
(5,931)
|
(2,584)
|
|
(10,175)
|
(6,372)
|
|
|
|
|
|
|
|
Net cash generated
from/(used in)
operating
activities
|
8,177
|
11,731
|
309
|
|
19,908
|
(2,004)
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
Proceed from disposal of
property,
plant and equipment
|
-
|
-
|
735
|
|
-
|
843
|
Acquisition of property, plant
and
equipment
|
-
|
-
|
(12,444)
|
|
-
|
(37,427)
|
Interest received
|
19
|
16
|
17
|
|
35
|
51
|
|
|
|
|
|
|
|
Net cash generated
from/(used in) investing activities
|
19
|
16
|
(11,692)
|
|
35
|
(36,533)
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
Bank borrowings
obtained
|
-
|
-
|
10,901
|
|
-
|
10,901
|
Repayment of short-term
loans
|
(7,879)
|
(6,354)
|
(4,777)
|
|
(14,233)
|
(4,777)
|
|
|
|
|
|
|
|
Net cash generated
from/(used in) financing activities
|
(7,879)
|
(6,354)
|
6,124
|
|
(14,233)
|
6,124
|
|
|
|
|
|
|
|
Net
increase/(decrease) in cash and cash equivalents
|
317
|
5,393
|
(5,259)
|
|
5,710
|
(32,413)
|
Cash and cash
equivalents,
beginning of period
|
12,083
|
6,697
|
12,969
|
|
6,697
|
39,923
|
Effect of foreign
exchange rate
differences
|
(79)
|
(7)
|
280
|
|
(86)
|
480
|
|
|
|
|
|
|
|
Cash and cash
equivalents,
end of
period
|
12,321
|
12,083
|
7,990
|
|
12,321
|
7,990
|
About Non-GAAP Financial Measures
In addition to China Ceramics' condensed consolidation financial
results under International Financial Reporting Standards ("IFRS"),
the Company also provides Non-IFRS financial measures (referred to
as Non-GAAP financial measures) for the second quarter of 2012,
including Non-GAAP profit before taxation, Non-GAAP net income and
Non-GAAP earnings per fully diluted shares, all of which exclude
the share-based compensation expenses from their comparable IFRS
measure. The Company believes that these Non-GAAP financial
measures provide investors with another method for assessing China
Ceramics' operating results in a manner that is focused on the
performance of its ongoing operations and excludes share-based
compensation expenses incurred for the stock option program.
Readers are cautioned not to view Non-GAAP results on a stand-alone
basis or as a substitute for results under GAAP, or as being
comparable to results reported or forecasted by other companies,
and should refer to the reconciliation of GAAP results with
Non-GAAP results below. The Company believes that both management
and investors benefit from referring to these Non-GAAP financial
measures in assessing the performance of China Ceramics and when
planning and forecasting future periods. The accompanying tables
have more details on the GAAP financial measures that are most
directly comparable to Non-GAAP financial measures and the related
reconciliation between these financial measures.
CHINA CERAMICS CO.,
LTD.
|
Unaudited
Reconciliation of GAAP to Non-GAAP
|
Three months ended
June 30, 2012
|
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
RMB'000
|
RMB'000
|
RMB'000
|
|
USD'000
|
USD'000
|
USD'000
|
Profit before
taxation
|
115,641
|
1,310
|
116,951
|
|
18,219
|
206
|
18,425
|
Net profit
|
86,066
|
1,310
|
87,376
|
|
13,560
|
206
|
13,766
|
EPS-Basic
|
4.21
|
|
4.28
|
|
0.66
|
|
0.67
|
EPS-Diluted
|
4.21
|
|
4.28
|
|
0.66
|
|
0.67
|
CHINA CERAMICS CO.,
LTD.
|
Unaudited
Reconciliation of GAAP to Non-GAAP
|
Three months ended
March 31, 2012
|
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
RMB'000
|
RMB'000
|
RMB'000
|
|
USD'000
|
USD'000
|
USD'000
|
Profit before
taxation
|
96,637
|
1,761
|
98,398
|
|
15,351
|
280
|
15,631
|
Net profit
|
71,671
|
1,761
|
73,432
|
|
11,385
|
280
|
11,665
|
EPS-Basic
|
3.51
|
|
3.59
|
|
0.56
|
|
0.57
|
EPS-Diluted
|
3.51
|
|
3.59
|
|
0.56
|
|
0.57
|
CHINA CERAMICS CO.,
LTD.
|
Unaudited
Reconciliation of GAAP to Non-GAAP
|
Three months ended
June 30, 2011
|
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
RMB'000
|
RMB'000
|
RMB'000
|
|
USD'000
|
USD'000
|
USD'000
|
Profit before
taxation
|
97,854
|
2,407
|
100,261
|
|
15,055
|
375
|
15,430
|
Net profit
|
72,409
|
2,407
|
74,816
|
|
11,139
|
375
|
11,514
|
EPS-Basic
|
3.97
|
|
4.10
|
|
0.61
|
|
0.63
|
EPS-Diluted
|
3.97
|
|
4.10
|
|
0.61
|
|
0.63
|
CHINA CERAMICS CO.,
LTD.
|
Unaudited
Reconciliation of GAAP to Non-GAAP
|
Six months ended June
30, 2012
|
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
RMB'000
|
RMB'000
|
RMB'000
|
|
USD'000
|
USD'000
|
USD'000
|
Profit before
taxation
|
212,278
|
3,071
|
215,349
|
|
33,570
|
486
|
34,056
|
Net profit
|
157,737
|
3,071
|
160,808
|
|
24,945
|
486
|
25,431
|
EPS-Basic
|
7.72
|
|
7.87
|
|
1.22
|
|
1.24
|
EPS-Diluted
|
7.72
|
|
7.87
|
|
1.22
|
|
1.24
|
CHINA CERAMICS CO.,
LTD.
|
Unaudited
Reconciliation of GAAP to Non-GAAP
|
Six months ended June
30, 2011
|
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
RMB'000
|
RMB'000
|
RMB'000
|
|
USD'000
|
USD'000
|
USD'000
|
Profit before
taxation
|
172,722
|
9,518
|
182,240
|
|
26,444
|
1,457
|
27,901
|
Net profit
|
126,420
|
9,518
|
135,938
|
|
19,355
|
1,457
|
20,812
|
EPS-Basic
|
6.93
|
|
7.45
|
|
1.06
|
|
1.14
|
EPS-Diluted
|
6.93
|
|
7.45
|
|
1.06
|
|
1.14
|
(1)
|
Share-based
compensation.
|
SOURCE China Ceramics Co., Ltd.