JINJIANG, Fujian Province, China, Dec. 19,
2016 /PRNewswire/ -- China Ceramics Co., Ltd. (NASDAQ
Capital Market: CCCL) ("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, 2016.
Third Quarter 2016 Highlights
- Revenue was RMB 251.2 million
(US$ 38.1 million) as compared to
RMB 339.0 million in the third
quarter of 2015
- Gross profit was RMB 6.7 million
(US$ 1.0 million) as compared to
RMB 46.3 million in the third quarter
of 2015
- Plant utilization was 53% as compared to 65% in the third
quarter of 2015
- Net profit was RMB 1.2 million
(US$ 0.2 million) as compared to
RMB 26.9 million in the third quarter
of 2015.
- Earnings per share on a basic and fully diluted basis were
RMB 0.44 (US$
0.06) and RMB 0.42
(US$ 0.06), respectively, as compared
to basic and fully diluted earnings per share of RMB 10.52 in the third quarter of 2015
- EBITDA (earnings before interest, taxes, depreciation and
amortization) was RMB 12.1 million
(US$ 1.8 million) as compared to
RMB 54.8 million in the third quarter
of 2015
"We experienced continued sluggish market conditions in the
third quarter of 2016 due to the slowing real estate and
construction sectors across China. We saw our sales volume
decline by 25% for the first nine months of the year as compared to
the year-ago period due to a continued contraction in customer
demand. However, we were still able to generate a reasonable
level of positive cash flow in the current quarter," said Mr.
Jiadong Huang, CEO of China
Ceramics.
"In order to move inventory, beginning on July 1, we instituted a 10% reduction in the
prices of slow moving products which we hope will turn some of this
inventory into cash. We are also looking for ways to operate
more efficiently and are working with our distributors and
suppliers to maintain stability in this challenging market
environment."
"During the third quarter, we utilized production facilities
capable of producing 38 million square meters of ceramic tiles per
year out of the Company's usable annual production capacity of 62
million square meters. As we have in past quarters, we
maintained a reduced utilization of existing plant capacity based
on the current market conditions in order to keep our operating
costs low, and we will bring additional capacity online as the
business environment improves."
"For the remainder of 2016 and into the first half of 2017, we
anticipate continued challenging market conditions due to there
being excess real estate for sale in many of China's cities and an overabundance of
building materials inventories. In the long-term, we believe that
the current retrenchment will moderate and reach an inflection
point and we will return to a more moderate growth environment as
real estate development and construction continue to be important
components to China's
economy. We are well positioned to capitalize on
opportunities in our sector relative to our competition and believe
that we can be adaptive so as to optimize our success during these
challenging times," concluded Chairman and Chief Executive Officer
Jiadong Huang.
Third Quarter 2016 Results
Revenue for the third quarter ended September 30, 2016 was RMB
251.2 million (US$ 38.1
million) as compared to RMB 339.0
million for the third quarter ended September 30, 2015. The year-over-year decrease
in revenue was due to a 17.3% decrease in sales volume to 9.1
million square meters of ceramic tiles in the third quarter of 2016
from 11.0 million square meters in the third quarter of 2015 and a
10.7% decrease in average selling price in the third quarter of
2016 to RMB 27.6 (US$ 4.1) as compared to RMB 30.9 for the third quarter of 2015.
Gross profit for the third quarter ended September 30, 2016 was RMB
6.7 million (US$ 1.0 million)
as compared to RMB 46.3 million for
the third quarter of 2015. The gross profit margin was 2.7% for the
third quarter ended September 30,
2016 compared to 13.7% for the third quarter of 2015. The
year-over-year reduction in gross profit margin was primarily due
to (i) the 10.7% decrease in the average selling price of the
Company's ceramic tiles attributable to our having instituted a 10%
reduction in the selling prices of slow moving inventory beginning
on July 1, 2016 due to challenging
market conditions, and (ii) an RMB 16.8
million write down of inventory in the third quarter of
2016.
Other income for the third quarter ended September 30, 2016 was RMB
3.6 million (US$ 0.5 million),
as compared to RMB 0.2 million for
the third quarter of 2015. The year-over-year increase in other
income was primarily due to RMB 3.5
million of rental income received by the Company for leasing
out one of its production lines from its Hengdali facility pursuant
to an eight-year lease contract.
Selling and distribution expenses for the third quarter
ended September 30, 2016 were
RMB 2.8 million (US$ 0.4 million) as compared to RMB 2.7 million in the third quarter of 2015. The
year-over-year increase in selling and distribution expenses was
primarily due to an RMB 0.4 million
increase in advertising expenses which was offset by a RMB 0.25 million decrease in travelling and
entertainment expenses.
Administrative expenses for the third quarter ended
September 30, 2016 were RMB 5.5 million (US$ 0.8
million) as compared to RMB 4.6
million in the third quarter of 2015. The year-over-year
increase in administrative expenses was primarily due to an
RMB 1.0 million increase in
consulting and auditing fees.
Other expenses for the third quarter ended September 30, 2016 were RMB 1.0 million (US$ 0.1
million) as compared to RMB 1.3
million for the third quarter of 2015.
Profit from operations before taxation for the third
quarter ended September 30, 2016 was
RMB 0.9 million (US$ 0.1 million) as compared to RMB 36.6 million of profit from operations before
taxation in the third quarter of 2015. The year-over-year decrease
in profit from operations before taxation was the result of the
year-over-year decrease in gross profit in the current quarter as
compared to the year-ago quarter offset somewhat by Other Income.
Net profit for the third quarter ended September 30, 2016 was RMB
1.2 million (US$ 0.2 million)
as compared to RMB 26.9 million of
net profit for the third quarter ended September 30, 2015.
Earnings per share for the third quarter ended
September 30, 2016 on a basic and
fully diluted basis were RMB 0.44
(US$ 0.06) and RMB 0.42 (US$
0.06), respectively, as compared to basic and fully diluted
earnings per share of RMB 10.52 in
the third quarter of 2015 (as adjusted for the one for eight
reverse split in June 2016). Basic and fully diluted per
share calculations for the third quarter of 2016 was computed using
2.7 million and 2.9 million ordinary shares outstanding,
respectively, and the basic and fully diluted per share calculation
for the third quarter of 2015 was computed using 2.6 million
ordinary shares outstanding (as adjusted for the one for eight
reverse stock split in June
2016).
EBITDA for the third quarter ended September 30, 2016 was RMB
12.1 million (US$ 1.8 million)
as compared to RMB 54.8 million for
the third quarter ended September 30,
2015. For a detailed reconciliation of EBITDA, a non-GAAP
measure to its nearest GAAP equivalent, please see the financial
tables at the end of this release.
Nine Months 2016 Financial Results
Revenue for the nine months ended September 30, 2016 was RMB
591.8 million (US$ 90.0
million), as compared to RMB 808.8
million for the nine months ended September 30, 2015. Gross profit was RMB 57.0 million (US$ 8.7
million), as compared to RMB 95.9
million in the nine months ended September 30, 2015. The gross profit margin was
9.6% as compared to 11.9% in the same period of 2015. Other income
was RMB 11.8 million (US$ 1.8 million), as compared to RMB 0.6 million in the same period of 2015.
Selling expenses were RMB 9.9 million
(US$ 1.5 million), as compared to
RMB 8.2 million in the same period of
2015. Administrative expenses were RMB 17.3
million (US$ 2.6 million), as
compared to RMB 15.6 million for the
same period of 2015. Other expenses were RMB
5.4 million (US$ 0.8 million),
as compared to RMB 2.0 million in the
same period of 2015. Net profit for the nine months ended
September 30, 2016 was RMB 30.7 million (US$ 4.7
million), as compared to net profit of RMB 48.9 million for the same period of 2015.
Earnings per basic share and earnings per fully diluted share were
RMB 11.18 (US$
1.70) and RMB 10.58
(US$ 1.61), respectively, for the
nine months ended September 30, 2016,
as compared to earnings per basic and fully diluted share of
RMB 19.14 in the same period of 2015
(as adjusted for the one for eight reverse stock split in
June 2016). Basic and fully diluted
per share calculations for the third quarter of 2016 was computed
using 2.7 million and 2.9 million ordinary shares outstanding,
respectively, and the basic and fully diluted per share calculation
for the third quarter of 2015 was computed using 2.6 million
ordinary shares outstanding (as adjusted for the one for eight
reverse stock split in June 2016).
Third Quarter 2016 Statements of Selected Financial Position
Items
- Cash and bank balances were RMB 25.6
million (US$ 3.8 million) as
of September 30, 2016, compared with
RMB 0.5 million as of December 31, 2015. The increase in cash and bank
balances of RMB 25.1 million was
primarily the result of net cash flow generated from operating
activities of RMB 17.9 million for
the first nine months of 2016.
- Short-term bank borrowings was nil as of September 30, 2016, as compared to RMB 40.1 million as of December 31, 2015.
- Inventory turnover was 144 days as of September 30, 2016, as compared with 131 days as
of December 31, 2015. The increase in
inventory turnover days was primarily due to the 25.0% decrease in
sales volume in the first nine months of 2016 to 19.8 million
square meters of ceramic tiles, as compared to 26.4 million square
meters of ceramic tiles in the first nine months of 2015. The
Company believes that the currently challenging economic
environment has caused a lower inventory turnover than normal and
the Company will make a continuous effort to deplete the
slow-moving stocks.
- Trade receivables turnover, net of value added tax, was 236
days as of September 30, 2016, as
compared with 163 days as of December 31,
2015. The increase in trade receivables turnover days was
primarily due to the difficult economic environment which has
prompted us to offer extended credit terms to certain customers
resulting in a higher trade receivables turnover figure than
normal. The Company believes that it has sound relationships with
its customers and that it will not experience difficulties
associated with collections from these accounts.
- Trade payables turnover, net of value added tax, was 99 days as
of September 30, 2016 compared with
70 days as of December 31, 2015. The
average turnover days was within the normal credit period of one to
four months granted by our suppliers. The increase in trade
payables turnover days was primarily due to the higher trade
receivables turnover days as well as the Company having slightly
extended its repayment period to its suppliers.
Liquidity and Capital Resources
Cash flow generated from operating activities was
RMB 22.0 million (US$ 3.3 million) for the quarter ended
September 30, 2016, as compared to
cash used in operating activities of RMB
28.3 million in the same period in 2015. The year-over-year
change of RMB 50.3 million was mainly
caused by: (i) profit before taxation of RMB
0.9 million for the quarter ended September 30, 2016, compared to a profit before
taxation of RMB 36.6 million for the
same period last year and (ii) an increase in trade receivables of
RMB 58.0 million for the quarter
ended Sep 30, 2016, compared to an
increase of RMB 139.0 million in the
same period last year.
Cash flow generated from investing activities was
RMB 0.02 million (US$ 0.002 million) for the quarter ended
September 30, 2016, mainly due to
interest received of RMB 0.02
million, compared to cash flow generated from investing
activities of RMB 0.2 million in the
same period of 2015.
Cash flow generated from financing activities was
RMB 1.1 million (US$ 0.2 million) for the quarter ended
September 30, 2016, due to the sale
of RMB 1.1 million of shares,
compared to cash flow used in financing activities of RMB 1.4 million for the same period of 2015.
Plant Capacity and Capital Expenditures Update
In March 2016, the Company entered
into an eight-year contract to lease out one of the production
lines from its Hengdali facility. The production line has the
capacity to produce approximately 10 million square meters of
ceramic tiles annually. The term of the contract is from
March 1, 2016 to February 29, 2024, and the contract stipulates
for the receipt of rental income of RMB 15.0
million per year, including 6% value added tax. The
Company believes that it is prudent to generate income from its
unused production capacity from a third party rather than let it
remain idle.
Therefore, for the term of the eight-year lease, the Company may
only produce up to 20 million square meters of ceramic tiles from
its Hengdali facility, and its maximum annual production capacity
has been effectively reduced from 72 million square meters of
ceramic tiles to 62 million square meters of ceramic tiles
attributable to the lease.
For the third quarter of 2016, we utilized plant capacity
capable of producing 38 million square meters of ceramic tiles
annually out of a total annual production capacity of 72 million
square in the third quarter meters (of which we are leasing 10
million square meters of production capacity to a third
party). This represents a decrease in plant capacity
utilization from the third quarter of 2015, when we utilized plant
capacity capable of producing 47 million square meters of ceramic
tiles annually.
Our Hengda facility has an annual production capacity of 42
million square meters of ceramic tiles and we utilized annual
capacity capable of producing 19 million square meters of ceramic
tiles in the third quarter of 2016. This compares to our
utilization of annual capacity capable of producing 29 million
square meters of ceramic tiles at our Hengda facility in the third
quarter of 2015. Our Hengdali facility has an annual production
capacity of 30 million square meters (of which we are leasing 10
million square meters of production capacity to a third party) and
we utilized annual capacity capable of producing 19 million square
meters of ceramic tiles at our Hengdali facility in the third
quarter of 2016. This compares to our utilization of annual
capacity capable of producing 18 million square meters of ceramic
tiles in the third quarter of 2015. We will bring our unused
production capacity online as customer demand dictates and when
there are signs of improvement in China's real estate and construction
sectors.
We review the level of capital expenditures throughout the year
and make adjustments subject to market conditions. Although
business conditions are subject to change, we anticipate a low
level of capital expenditures for the remainder of 2016 other than
those associated with minimal upgrades, small repairs and the
maintenance of equipment. Looking ahead to 2017, we also anticipate
a low level of capital expenditures given our generally upgraded
plant and equipment and the currently challenging market
conditions.
Business Outlook
In the third quarter of 2016, we experienced a contraction in
our sales volume compared to the third quarter of 2015 due to the
effects of a continued slowdown in China's construction sector. In the
third quarter of 2016, the Company's sales volume was 9.1 million
square meters of ceramic tiles, a decrease 17.3% as compared to
sales volume of 11.0 million square meters of ceramic tiles in the
year-ago quarter. For the first nine months of 2016, sales
volume was 19.8 million square meters of ceramic tiles, a decrease
of 25.0% as compared to sales volume of 26.4 million square meters
for the first nine months of 2015. The current quarter's
period over year-ago period decline in sales volume was the fourth
in a row, and it was the sixth quarter out of the last seven
quarters of period over year-ago period declines.
In addition, the challenging market environment has caused us to
institute a 10% reduction in the prices of slow moving inventory on
July 1, 2016. This was primarily the
cause of a 10.7% decrease in the average selling price for all our
products in the current quarter to RMB
27.6 per square meter of ceramic tile as compared to
RMB 30.9 per square meter of ceramic
tile in the year-ago quarter. This was the first decline in
average selling price following eleven quarters of period over
year-ago period increases. It was also the biggest such
decline in three years which was then also due to an industry
retrenchment. We attribute the current quarter's decrease in both
sales volume and average selling price to continued difficult
macroeconomic and real estate conditions in China.
We expect the currently challenging market conditions to
continue for the remainder of this year and into next year as the
pace of property construction has slowed substantially, especially
for moderately priced residential units which are the core of our
business. A further decline in new building projects is
likely to occur as the Chinese government is intent upon
restricting property-related investments to cool high property
prices which have risen dramatically in China's largest cities as well as to reign in
the borrowing that has occurred among property developers and the
overweighting of mortgages in the banking sector. However,
additional land could be made available for development to
rebalance supply and demand and to tamp down an increase in
property prices in China's
major cities.
Although a period of retrenchment has emerged in our sector, we
believe that the building materials sector is sustainable in the
long-term since the economic fundamentals for property development
and construction are underpinned by the Chinese government's policy
of urbanization. Overall, we expect lower growth in residential
building as compared to what has occurred historically, especially
in smaller cities that still have a large inventory of unsold
properties.
We typically receive orders from customers two months in advance
of production on a rolling basis. We enter into a dealership
agreements with customers, and a sales or purchase contract each
time a customer places an order. As of September 30, 2016, our backlog was approximately
RMB 96.0 million (US$ 14.4 million), which represents approximately
the next two months of revenue as of the end of the third quarter.
This compares to a backlog of approximately RMB 159.0 million as of September 30, 2015, a year-over-year decrease of
39.6%. Under normal circumstances, our backlog is an indicator of
revenues that might be expected in the next quarter, though it is
subject to change as a result of unforeseen business conditions and
events including credit payment terms.
In our view, we are reasonably well positioned to weather the
current headwinds caused by a downturn in China's construction industry due to our
prominent name recognition, expertise, product customization,
and ability to operate in a lean and efficient manner with
best-in-class manufacturing facilities. We foresee a possible
boost in the Chinese government's infrastructure spending on
affordable and senior housing which could generate opportunities
for our company. We will continue to be opportunistic and
adaptive to the market environment and will seek to pursue new
business opportunities in an attempt to countervail currently
challenging market conditions.
Conference Call Information
We will host a conference call at 8:00 am
ET on Monday, December 19,
2016. 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 26516335. A replay of the
conference call will be available for 14 days starting from
11:00 am ET on December 19, 2016. To access the replay, dial +1
(855) 859-2056. International callers should dial +1 (404)
537-3406. The pass code is 26516335 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", "Hengdali" 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"). Translations of amounts from RMB into United States dollars ("US$") in this earnings
release are solely for the convenience of the readers and were
calculated at the rate of US$1.00 =
RMB 6.6685. The exchange rate refers
to the historical rate as set forth in the H.10 statistical release
published by www.federalreserve.gov on September 30, 2016. Such translations should not
be construed as representations that RMB amounts could have been,
or could be, converted realized or settled into US$ at that rate on
September 30, 2016 or any other
rate.
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. Forward-looking statements in this press release
include, without limitation, the continued stable macroeconomic
environment in the PRC, the PRC real estate and construction
sectors continuing to exhibit sound long-term fundamentals, our
ability to bring additional capacity online going forward as our
business improves, our customers continuing to adjust to our
product price increases, our ability to sustain our average selling
price increases and to continue to build volume in the quarters
ahead, and whether our enhanced marketing efforts will help to
produce wider customer acceptance of the new price points. 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, 2015 and
otherwise in our SEC reports and filings. Such reports are
available upon request from the Company, or from the Securities and
Exchange Commission, including through the SEC's Internet website
at http://www.sec.gov. We have no obligation and do not undertake
to update, revise or correct any of the forward-looking statements
after the date hereof, or after the respective dates on which any
such statements otherwise are made.
FINANCIAL TABLES FOLLOW
CHINA CERAMICS
CO., LTD. AND ITS SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION
|
|
|
|
|
|
|
|
As
of September 30,
2016
|
As of
December 31, 2015
|
|
|
USD'000
|
RMB'000
|
RMB'000
|
|
|
|
|
|
ASSETS AND
LIABILITIES
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Property, plant and
equipment
|
|
53,752
|
358,442
|
409,855
|
Investment
property
|
|
2,685
|
17,907
|
-
|
Land use
rights
|
|
2,329
|
15,532
|
15,809
|
Deferred tax
asset
|
|
2,024
|
13,495
|
9,584
|
|
|
|
|
|
|
|
60,790
|
405,376
|
435,248
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Inventories
|
|
38,306
|
255,446
|
306,853
|
Trade
receivables
|
|
102,731
|
685,060
|
509,903
|
Other receivables and
prepayments
|
|
1,015
|
6,766
|
18,830
|
Restricted
cash
|
|
-
|
-
|
41,672
|
Cash and bank
balances
|
|
3,842
|
25,623
|
514
|
|
|
|
|
|
|
|
145,894
|
972,895
|
877,772
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Trade
payables
|
|
25,538
|
170,297
|
110,267
|
Accrued liabilities
and other payables
|
|
6,427
|
42,855
|
35,177
|
Interest-bearing bank
borrowings
|
|
-
|
-
|
40,076
|
Amount owed to a
related party
|
|
5,297
|
35,326
|
33,963
|
Income tax
payable
|
|
524
|
3,496
|
5,293
|
|
|
|
|
|
|
|
37,786
|
251,974
|
224,776
|
|
|
|
|
|
Net current
assets
|
|
108,108
|
720,921
|
652,996
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
Deferred tax
liabilities
|
|
211
|
1,404
|
1,404
|
|
|
|
|
|
Net
assets
|
|
168,687
|
1,124,893
|
1,086,840
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Total
shareholders' equity
|
|
168,687
|
1,124,893
|
1,086,840
|
CHINA CERAMICS
CO., LTD. AND ITS SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR
LOSS
|
|
|
|
Three months
ended September 30,
|
|
2016
|
2015
|
|
USD'000
|
RMB'000
|
RMB'000
|
|
|
|
|
Revenue
|
38,125
|
251,192
|
339,040
|
|
|
|
|
Cost of
sales
|
(37,116)
|
(244,469)
|
(292,717)
|
|
|
|
|
Gross
profit
|
1,009
|
6,723
|
46,323
|
|
|
|
|
Other
income
|
538
|
3,554
|
177
|
Selling and
distribution expenses
|
(430)
|
(2,833)
|
(2,726)
|
Administrative
expenses
|
(839)
|
(5,532)
|
(4,599)
|
Finance
costs
|
-
|
-
|
(1,263)
|
Realized and
unrealized fair value gain on derivative
financial
instruments
|
-
|
-
|
-
|
Other
expenses
|
(149)
|
(983)
|
(1,325)
|
|
|
|
|
Profit before
taxation
|
129
|
929
|
36,587
|
Income tax
expense
|
45
|
285
|
(9,718)
|
|
|
|
|
Profit attributable
to shareholders
|
174
|
1,214
|
26,869
|
|
|
|
|
Earnings
per share
|
|
|
|
Basic
(USD/RMB)
|
USD 0.06
|
RMB 0.44
|
RMB
10.52
|
Diluted
(USD/RMB)
|
USD 0.06
|
RMB 0.42
|
RMB
10.52
|
|
|
|
|
Weighted average
number of ordinary shares outstanding
used in
computing earnings per share
|
|
|
|
Basic
|
2,746,021
|
2,746,021
|
2,553,855
|
Diluted
|
2,903,086
|
2,903,086
|
2,553,855
|
|
|
|
|
CHINA CERAMICS
CO., LTD. AND ITS SUBSIDIARIES
|
SALES VOLUME AND
AVERAGE SELLING PRICE (UNAUDITED)
|
|
|
Three
months ended September 30,
|
|
2016
|
|
2015
|
|
|
|
|
Sales volume (square
meters)
|
9,092,715
|
|
10,965,093
|
Average Selling Price
(in RMB/square meter)
|
27.6
|
|
30.9
|
|
|
|
|
CHINA CERAMICS
CO., LTD. AND ITS SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR
LOSS
|
|
|
|
Nine months
ended September 30,
|
|
2016
|
2015
|
|
USD'000
|
RMB'000
|
RMB'000
|
|
|
|
|
Revenue
|
90,036
|
591,821
|
808,802
|
|
|
|
|
Cost of
sales
|
(81,371)
|
(534,864)
|
(712,890)
|
|
|
|
|
Gross
profit
|
8,665
|
56,957
|
95,912
|
|
|
|
|
Other
income
|
1,788
|
11,756
|
598
|
Selling and
distribution expenses
|
(1,499)
|
(9,850)
|
(8,165)
|
Administrative
expenses
|
(2,632)
|
(17,299)
|
(15,638)
|
Finance
costs
|
(112)
|
(735)
|
(3,345)
|
Realized and
unrealized fair value loss on derivative
financial
instruments
|
-
|
-
|
-
|
Other
expenses
|
(825)
|
(5,421)
|
(2,021)
|
|
|
|
|
Profit/(loss) before
taxation
|
5,385
|
35,408
|
67,341
|
Income tax
expense
|
(715)
|
(4,699)
|
(18,468)
|
|
|
|
|
Profit/(loss)
attributable to shareholders
|
4,670
|
30,709
|
48,873
|
|
|
|
|
Earnings/(loss) per
share
|
|
|
|
Basic
(USD/RMB)
|
USD 1.70
|
RMB 11.18
|
RMB 19.14
|
Diluted
(USD/RMB)
|
USD 1.61
|
RMB 10.58
|
RMB 19.14
|
|
|
|
|
Weighted average
number of ordinary shares outstanding
used in
computing earnings/(loss) per share
|
|
|
|
Basic
|
2,746,021
|
2,746,021
|
2,553,855
|
Diluted
|
2,903,086
|
2,903,086
|
2,553,855
|
|
|
|
|
CHINA CERAMICS
CO., LTD. AND ITS SUBSIDIARIES
|
SALES VOLUME AND
AVERAGE SELLING PRICE (UNAUDITED)
|
|
|
|
Nine months ended
September 30,
|
|
2016
|
|
2015
|
|
|
|
|
Sales volume (square
meters)
|
19,805,659
|
|
26,394,056
|
Average Selling Price
(in RMB/square meter)
|
29.9
|
|
30.6
|
|
|
|
|
CHINA CERAMICS
CO., LTD. AND ITS SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
For the
three months ended September
30,
|
|
2016
|
2015
|
|
USD'000
|
RMB'000
|
RMB'000
|
Cash flows from
operating activities
|
|
|
|
Profit before
taxation
|
122
|
929
|
36,587
|
Adjustments
for
|
|
|
|
Amortization of land
use rights
|
14
|
91
|
167
|
Depreciation of
property, plant and equipment
|
1,655
|
11,115
|
16,951
|
Write down of
inventories
|
2,527
|
16,848
|
3,992
|
Finance
costs
|
-
|
-
|
1,263
|
Interest
income
|
(2)
|
(23)
|
(206)
|
Foreign exchange
loss
|
-
|
-
|
1,002
|
Operating cash flows
before working capital changes
|
4,316
|
28,960
|
59,756
|
Increase in
inventories
|
(90)
|
(475)
|
(4,079)
|
Increase in trade
receivables
|
(8,683)
|
(58,300)
|
(139,057)
|
Decrease in other
receivables and prepayments
|
1,160
|
7,749
|
2,750
|
Increase in trade
payables
|
6,004
|
40,105
|
49,384
|
Increase in accrued
liabilities, other payables and
amounts owed to
a related party
|
1,203
|
8,038
|
9,388
|
Cash used in
operations
|
3,910
|
26,077
|
(21,858)
|
Interest
paid
|
-
|
-
|
(1,263)
|
Income tax
paid
|
(605)
|
(4,053)
|
(5,131)
|
Net cash provided by
(used) in operating activities
|
3,305
|
22,024
|
(28,252)
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Interest
received
|
2
|
23
|
206
|
Net cash
generated from investing activities
|
2
|
23
|
206
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Issue of share
capital
|
155
|
1,056
|
-
|
Repayment of short term
loan
|
-
|
-
|
(1,356)
|
Net cash used
in financing activities
|
155
|
1,056
|
(1,356)
|
|
|
|
|
Net decrease in
cash and cash equivalents
|
3,462
|
23,103
|
(29,402)
|
Cash and cash
equivalents, beginning of period
|
500
|
3,324
|
255,855
|
Effect of foreign
exchange rate differences
|
(120)
|
(804)
|
(135)
|
Cash and cash
equivalents, end of period
|
3,842
|
25,623
|
226,318
|
CHINA CERAMICS
CO., LTD. AND ITS SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
For the nine
months ended September 30,
|
|
2016
|
2015
|
|
USD'000
|
RMB'000
|
RMB'000
|
Cash flows from
operating activities
|
|
|
|
Profit/ (loss) before
taxation
|
5,310
|
35,408
|
67,341
|
Adjustments
for
|
|
|
|
Amortization of land
use rights
|
42
|
278
|
501
|
Depreciation of
property, plant and equipment
|
5,024
|
33,505
|
50,967
|
(Gain)/loss on
disposal of property, plant and equipment
|
-
|
-
|
(2)
|
Write down of
inventories
|
2,346
|
15,644
|
11,547
|
Finance
costs
|
118
|
786
|
3,345
|
Interest
income
|
(266)
|
(1,777)
|
(596)
|
Foreign exchange
loss
|
-
|
-
|
972
|
Operating cash flows
before working capital changes
|
12,574
|
83,844
|
134,075
|
Decrease/(increase)
in inventories
|
5,363
|
35,763
|
3,314
|
Increase in trade
receivables
|
(26,266)
|
(175,157)
|
(50,394)
|
(Increase)/decrease
in other receivables and prepayments
|
1,809
|
12,064
|
(4,782)
|
Increase in trade
payables
|
9,002
|
60,030
|
91,589
|
Increase in accrued
liabilities, other payables and amounts
|
1,883
|
12,556
|
-
|
owed to a related
party
|
-
|
-
|
10,858
|
Cash generated from
operations
|
4,365
|
29,100
|
184,660
|
Interest
paid
|
(118)
|
(786)
|
(3,357)
|
Income tax
paid
|
(1,561)
|
(10,407)
|
(13,785)
|
Net cash
generated from operating activities
|
2,686
|
17,907
|
167,518
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Proceed from disposal
of property, plant and equipment
|
-
|
-
|
50
|
Increase in
restricted cash
|
6,249
|
41,672
|
-
|
Interest
received
|
266
|
1,777
|
596
|
Net cash
generated from investing activities
|
6,515
|
43,449
|
646
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Proceed from
short-term loans
|
-
|
-
|
35,000
|
Repayment of
short-term loans
|
(6,010)
|
(40,076)
|
(36,356)
|
Dividend
paid
|
-
|
-
|
(1,505)
|
Issue of share
capital
|
927
|
6,185
|
-
|
Net cash used
in financing activities
|
(5,083)
|
(33,891)
|
(2,861)
|
|
|
|
|
Net increase in
cash and cash equivalents
|
4,118
|
27,465
|
165,303
|
Cash and cash
equivalents, beginning of period
|
77
|
514
|
61,155
|
Effect of foreign
exchange rate differences
|
(353)
|
(2,356)
|
(140)
|
Cash and cash
equivalents, end of period
|
3,842
|
25,623
|
226,318
|
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 measure) for the third quarter of 2015 and
2016 from their comparable IFRS measures. The Company believes that
these Non-GAAP financial measures provide investors with other
methods for assessing China Ceramics' operating results in a manner
that is focused on the performance of its ongoing operations.
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 unaudited reconciliation presented 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 table below sets forth a reconciliation of China Ceramics'
net income to non-GAAP EBITDA for the periods indicated:
CHINA CERAMICS
CO., LTD.
|
Unaudited
Reconciliation of GAAP to Non-GAAP: Net Income to EBITDA
(1)
|
Three months
ended September 30, 2016 and
September 30, 2015
|
(all figures in
000's)
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
RMB
|
USD
|
|
RMB
|
USD
|
|
|
|
|
|
|
Net profit
|
1,214
|
174
|
|
26,869
|
4,228
|
Interest
expense
|
-
|
-
|
|
1,263
|
199
|
Interest
income
|
(23)
|
(2)
|
|
(206)
|
(32)
|
Income tax
expense
|
(285)
|
(45)
|
|
9,718
|
1,529
|
Depreciation and amortization expense
|
11,206
|
1,669
|
|
17,118
|
2,693
|
EBITDA
|
12,112
|
1,796
|
|
54,762
|
8,617
|
|
|
|
|
|
|
(1) EBITDA is
defined as earnings before interest, taxes, depreciation and
amortization
|
Contact
Information:
|
|
China Ceramics Co.,
Ltd.
|
Precept Investor
Relations LLC
|
Edmund Hen, Chief
Financial
Officer
|
David Rudnick,
Account Manager
|
Email:
info@cceramics.com
|
Email:
david.rudnick@preceptir.com
|
|
Phone: +1
917-864-8849
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/china-ceramics-announces-third-quarter-2016-financial-results-300380431.html
SOURCE China Ceramics Co., Ltd.