China Ceramics Announces Second Quarter 2013 Financial Results

        China Ceramics Announces Second Quarter 2013 Financial Results

PR Newswire

JINJIANG, Fujian Province, China, Aug. 12, 2013

JINJIANG, Fujian Province, China, Aug. 12, 2013 /PRNewswire/ -- China Ceramics
Co., Ltd. (NASDAQ Global 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 second quarter ended June 30, 2013.

Second Quarter 2013 Highlights

  oRevenue was RMB 222.7 million (US$ 36.1 million);
  oGross profit was RMB 22.2 million (US$ 3.6 million);
  oGross profit margin was 10.0%;
  oEBITDA (earnings before interest, taxes, depreciation and amortization)
    was RMB 28.7 million (US$ 4.7 million);
  oNet income was RMB 9.6 million (US$ 1.5 million);
  oOn a quarter-to-quarter sequential basis, revenue was up 49.2%, gross
    profit was up 331.6% and EBITDA was up 149.6%;
  oNon-GAAP net profit, which excludes the current quarter's share-based
    compensation expenses, was RMB 10.1 million (US$ 1.6 million);
  oEarnings per fully diluted share were RMB 0.47 (US$ 0.08).

"We are pleased to report improved financial performance for the second
quarter consistent with our expectation of a rebound in the market environment
for real estate and construction. The second quarter saw improved sales volume
of our ceramic tiles and a rising average selling price relative to the first
quarter which resulted in stronger sequential revenue and net earnings.
However, business activity is still significantly slower relative to the
year-ago comparable quarter. For the remainder of 2013, we see room for a
further return to the more normalized market environment of a year ago and
continued strengthened financial results for the company as the recovery in
our sector's fundamentals develops additional traction," said Mr. Jiadong
Huang, CEO of China Ceramics.

"While the market environment has been challenging, we will continue to
innovate and offer a superior product mix to our customers so as to sustain
our competitive advantage. With our upgraded and modern facilities, we have
the capability to operate efficiently and produce new lines of innovative and
high performing ceramic tiles. Further, with our pricing now pointing back
towards higher, historical levels, we can now strive to optimize our product
mix to spur strategic sales of our better performing products and improve our
margins. We continue to be well positioned in our industry and believe that
our exceptional name-brand recognition and state-of-the art plants well
positions us for a further turnaround in the market."

"In the second quarter, we maintained a reduced utilization of existing
operating plant capacity based on the market environment in order to keep our
operating costs low. We are currently utilizing plant production facilities
capable of producing 28 million square meters of ceramic tiles per year out of
our total annual production capacity of 72 million square meters of ceramic
tiles. We will bring additional capacity online as the market environment
dictates. In addition to the improved market environment, we believe that our
close relationships with our customers account for our volume and pricing
increases in the second quarter and that our marketing expertise will enable
us to continue to penetrate Tier II and Tier III markets to generate stronger
results in the quarters ahead," concluded Mr. Jiadong Huang.

Second Quarter 2013 Results

Revenue for the second quarter ended June 30, 2013 was RMB 222.7 million (US$
36.1 million), an increase of 49.2% from RMB 149.2 million (US$ 24.0 million)
for the first quarter ended March 31, 2013, but down 49.5% from RMB 441.0
million (US$ 69.5 million) for the second quarter ended June 30, 2012. The
quarter-over-quarter sequential increase in revenue was primarily driven by a
36.2% increase in sales volume to 8.3 million square meters of ceramic tiles
in the second quarter of 2013 relative to the first quarter of the year and a
9.4% increase in the average selling price in the second quarter to RMB 26.7
per square meter as compared to the previous quarter. However, the second
quarter's sales volume represented a 39.0% decrease from the year-ago quarter
and its average selling price was 17.9% lower as compared to the average
selling price of RMB 32.5 per square meter in the second quarter of 2012.
Though improved from the first quarter of 2013, the Company attributes its
reduced revenue relative to the year-ago quarter as attributable to improved
but still recovering business conditions in China's real estate and
construction sectors.

Gross profit for the second quarter ended June 30, 2013 was RMB 22.2 million
(US$ 3.6 million), a sequential rise of 331.6% from first quarter 2013 results
of RMB 5.1 million (US$ 0.8 million), but down 82.7% from RMB 128.6 million
(US$ 20.3 million) for the second quarter ended June 30, 2012. Gross profit
margin was 10.0% for the second quarter ended June 30, 2013 compared to 3.4%
for the first quarter of 2013 and a gross profit margin of 29.2% for second
quarter of 2012. The change in gross profit margin for the second quarter
relative to the first quarter of 2013 and the year ago quarter of 2012 was
caused by a change in the average selling price of ceramic tiles relative to
these quarters.

Administrative expenses for the second quarter ended June 30, 2013 were RMB
8.0 million (US$ 1.3 million), up 12.7% from RMB 7.1 million (US$ 1.1 million)
in the second quarter of 2012. The year-over-year increase in administrative
expenses was primarily due to a rise of legal, consulting and audit fees.
Non-cash share-based compensation expenses related to the 2010 Incentive
Compensation Plan declined to RMB 0.5 million (US$ 0.1 million) as compared to
RMB 1.3 million (US$ 0.2 million) in the same period in 2012. It is expected
that additional non-cash share-based compensation expenses of approximately
RMB 1.2 million (US$ 0.2 million) will be incurred between July 2013 and
January 2014.

Profit from operations before taxation for the second quarter ended June 30,
2013 was RMB 9.9 million (US$ 1.6 million), as compared to 115.6 million (US$
18.2 million) of profit from operations before taxation in the second quarter
of 2012. The year-over-year decrease in profit from operations was primarily
the result of the decrease in the sales volume and lower gross profit in the
second quarter of 2013. However, profit from operations from taxation
experienced a sequential turnaround from the loss before taxes of RMB 6.5
million (US$ 1.1 million) that occurred in the first quarter of 2013.

Net profit for the second quarter ended June 30, 2013 was RMB 9.6 million (US$
1.5 million), as compared to a net profit of RMB 86.1 million (US$ 13.6
million) in the comparable period of 2012. The year-over-year decrease in net
profit was primarily the result of the decrease in the sales volume and lower
gross profit in the second quarter of 2013. Net profit for the second quarter
of 2013 also experienced a sequential turnaround from the net loss of RMB 5.4
million (US$ 0.9 million) that occurred in the first quarter of the year.

Earnings per fully diluted share were RMB 0.47 (US $0.08) for the second
quarter ended June 30, 2013 as compared to a net loss per share of RMB 0.26
(US $0.04) in the first quarter of 2013 and earnings per fully diluted share
of RMB 4.21 (US$ 0.66) in the second quarter of 2012. Per share calculations
for the second quarters of 2013 and 2012 were computed using 20.4 million
shares.

Non-GAAP profit before taxation, which  excludes share-based compensation
expenses, was RMB 10.4 million (US$ 1.7 million) in the second quarter ended
June 30, 2013, as compared to a non-GAAP loss before taxation of RMB 5.8
million (US$ 0.9 million) in the first quarter of 2013 and RMB 117.0 million
(US$ 18.4 million) of non-GAAP profit before taxation in the same period of
2012.

Non-GAAP net profit, which excludes share-based compensation expenses, was RMB
10.1 million (US$ 1.6 million) in the second quarter ended June 30, 2013, as
compared to a non-GAAP net loss of RMB 4.6 million (US$ 0.7 million) in the
first quarter of 2013 and RMB 87.4 million (US$ 13.8 million) of non-GAAP net
profit in the second quarter of 2012.

Non-GAAP earnings per fully diluted share, which excludes share-based
compensation expenses, was RMB 0.49 (US $0.08) in the second quarter ended
June 30, 2013, as compared to RMB 4.28 (US$ 0.67) of non-GAAP earnings per
fully diluted share in the same period of 2012.and RMB 4.28 (US$ 0.67) of
non-GAAP earnings per fully diluted share in the same period of 2012.

The financial results of the second quarter of 2013 represent a substantial
improvement from the financial results of the first quarter which included a
net loss for the quarter. All of the Company's financial measures for the
second quarter have improved over its first quarter measures driven by the
increases in sales volume and average selling price.

Six Months 2013 Results

Revenue for the six months ended June 30, 2013 was RMB 371.9 million (US$ 60.1
million) a decrease of 54.3% as compared to RMB 813.3 million (US$ 128.6
million) for the six months ended June 30, 2012. Gross profit was RMB 27.3
million (US$ 4.4 million), down 88.7% from RMB 241.6 million (US$ 38.2
million) in the six months ended June 30, 2012. Gross margin was 7.3% compared
to 29.7% in the same period of 2012. Selling expenses were RMB 4.9 million
(US$ 0.8 million), compared to RMB 5.8 million (US$ 0.9 million) in the same
period of 2012. Administrative expenses were RMB 15.7 million (US$ 2.5
million), compared to RMB 16.7 million (US$ 2.6 million) for the same period
of 2012. Net profit for the six months ended June 30, 2013 was RMB 4.2 million
(US$ 0.7 million), compared to RMB 157.7 million (US$ 24.9 million) for the
same period of 2012. Non-GAAP net profit, which excludes share-based
compensation expenses, was RMB 5.4 million (US$ 0.9 million) for the six
months ended June 30, 2013, a decrease of 96.6% from RMB 160.8 million (US$
25.4 million) in the same period of 2012. Earnings per fully diluted share
were RMB 0.21 (US$ 0.03) for the six months ended June 30, 2013 and RMB 0.27
(US$ 0.04) on a non-GAAP basis, down from RMB 7.72 (US$ 1.22) and RMB 7.87
(US$ 1.24) on a non-GAAP basis in the same period of 2012. Earnings per fully
diluted share for the first half of 2013 and 2012 were computed using 20.4
million shares.

Second Quarter 2013 Statements of Selected Financial Position Items

  oCash and bank balances were RMB 217.4 million (US$ 35.4 million) as of
    June 30, 2013, compared with RMB 89.4 million (US$ 14.4 million) as of
    December 31, 2012. The increase in cash and bank balances was the result
    of a reduced level of receivables, an increased level of trade payables
    and an increase in bank borrowings received in the second quarter of 2013.
  oTotal debt, which consists of short-term and long-term bank borrowings,
    was RMB 75.6 million (US$ 12.3 million) as of June 30, 2013, compared with
    total debt of RMB 60.0 million (US $9.6 million) as of year-end fiscal
    2012. The change was due to a modest increase in borrowing due to the
    reduction in bank cash balances attributable to the dividend payment in
    the second quarter so as to ensure a continued stable relationship with
    lenders.
  oInventory turnover was 133 days as of June 30, 2013 compared with 111 days
    as of December 31, 2012. The increase in inventory turnover reflects the
    decrease in sales volume, which resulted in slower moving sales of
    finished goods at June, 2013 and the price reductions in the first six
    months of 2013. The methodology for the second quarter of 2013 uses
    average quarter-end inventory balance and cost of sales for the trailing
    twelve months.
  oTrade receivables turnover was 147 days as of June 30, 2013 compared with
    119 days as of December 31, 2012. 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 126 days as of June
    30, 2013 compared with 102 days as of December 31, 2012. The Company
    extended the credit period for certain customers to 150 days to address
    funding pressures of those customers since the quarter ended December 31,
    2012. The methodology for the second quarter of 2013 uses average
    quarter-end trade receivables balance and revenues for the trailing twelve
    months.
  oTrade payables turnover was 67 days as of June 30, 2013 compared with 73
    days as of December 31, 2012. The average turnover days were within the
    Company's normal credit period. The methodology for the second quarter of
    2013 uses average quarter-end trade payables balance and cost of sales for
    the trailing twelve months.

 Liquidity and Capital Resources

Cash flow generated from operating activities was RMB 73.9 million (US$ 12.1
million) for the quarter ended June 30, 2013, compared to RMB 52.0 million
(US$ 8.2 million) in the same period in 2012. The year-over-year increase of
RMB 21.9 million (US$ 3.9 million) was mainly due to the decreased purchase of
raw material and the decrease in revenue compared to the same period in 2012.
As the market environment has been challenging since the end of 2012, the
decrease in sales volume and revenue caused the Company to reduce the
utilization of its existing operating plant capacity which resulted in a
decrease in the purchase of raw materials.

Cash flow used in investing activities in the quarter ended June 30, 2013 was
RMB 23.5 million (US$ 3.8 million) mainly due to the acquisition of equipment,
compared to RMB 0.1 million (US$ 0.02 million) of cash flow generated from
investing activities in the same period of 2012 due to interest received.

Cash flow generated in financing activities was RMB 15.6 million (US$ 2.6
million) due to the bank borrowing received in the quarter ended June 30,
2013, as compared to RMB 50.0 million (US$ 7.9 million) used in financing
activities for the same period of 2012, due to the repayment of bank
borrowings.

Plant Capacity and Capital Expenditures Update

Although the economic climate for real estate development and construction in
China improved in the second quarter, the Company is being conservative as to
when to deploy unused plant capacity. The Company is currently utilizing plant
facilities capable of producing 28 million square meters of ceramic tiles
annually out of an annual production capacity of 72 million square meters that
is available to the Company. This represents an increase in plant capacity
from that utilized in the first quarter of 2013 when the Company utilized
plant capacity capable of producing 20 million square meters of ceramic tiles
annually. The Company's Hengda facility has an annual production capacity of
42 million square meters of ceramic tiles and we utilized capacity capable of
producing 22 million square meters of ceramic tiles annually in the second
quarter of 2013. The Company's Hengdali facility has an annual productive
capacity of 30 million square meters and we utilized capacity capable of
producing 6 million square meters of ceramic tiles annually in the second
quarter of 2013. The Company will bring its unused annual productive capacity
online as customer demand dictates and when there are further signs of an
improvement in China's real estate and construction sector.

Management reviews the levels of capital expenditures throughout the year and
makes adjustments to its capital expenditures subject to market conditions.
The Company expended RMB 5.5 million (US $0.9 million) in the second quarter
for the acquisition of equipment at its Hengdali facility and prepaid RMB 8.2
million (US $1.3 million) to modify an existing production line at its Hengda
facility so as to enable the introduction ofnew products into the
marketplace. In addition, the Company expended RMB 10.0 million (US $1.7
million) for the interior build-out of the completed office building adjacent
to the Hengdali facility in the second quarter. Management anticipates a
modest level of capital expenditures for the remainder of 2013.

Business Outlook

In the second quarter of 2013, the Company experienced a pick-up in its
business activity as the improved market environment that we anticipated began
to take hold. The Company's sales volume was 8.3 million square meters of
ceramic tiles in the second quarter of 2013, an increase of 36.2% as compared
to the first quarter, and the Company's average selling price in the second
quarter rose 9.4% relative to the first quarter. In the Company's view, these
key metrics represent a potential inflection point from lows experienced in
the first quarter of 2013 and a reversal of the downward trend that had
occurred beginning in the third quarter of 2012.

Based upon our improved level of business activity, China's construction and
real estate sectors are showing signs of a further recovery from the effects
of the slowdown that impacted the Company's financial results in the fourth
quarter of 2012 and in the first quarter of 2013 when the Company lowered its
average selling price in order to meet competitors' sharp discounting and
retain market share. As indicated, the Company's sales volume was 8.3 million
square meters of ceramic tiles in the second quarter of 2013, and the Company
estimates that its sales volume of ceramic tiles in July and August of 2013
will be approximately 8.8 million square meters. In addition, the Company's
estimate of its average selling price of RMB 27.3 per square meter of ceramic
tiles for July and August 2013 represents a 2.2% increase from its average
selling price of RMB 26.7 per square meter of ceramic tiles in the second
quarter of 2013.

As of June 30, 2013, The Company's backlog of orders for delivery in July and
August of 2013 is approximately RMB 240.43 million (US$ 39.2 million), or
82.1% of the approximately RMB 292.78 million (US$ 47.7 million) of backlog of
orders for delivery for the same period of 2012, Under normal circumstances,
the Company's backlog is an indicator of revenues in the next quarter, though
it is subject to change as a result of unforeseen business conditions and
events, including extended credit payment terms.

The Company believes that uncertainty as to Chinese government policy relative
to speculative buying of real estate contributed to a general slowdown in the
China construction sector. Previous government regulations to limit
speculation especially in Tier I cities have included limiting home purchases,
narrowing credit to developers and tightening down on payment requirements.
However, recent signals portend an improved real estate sector with new
construction levels reported to be within reasonable levels as deemed by the
government. Further, inventory levels are reported to be leveling off in the
major cities which could spur construction starts during the second half of
2013. Finally, government support for an increase in both affordable and
senior housing should also generate opportunities for real estate development
companies.

In terms of the construction sector's long-term fundamentals, we believe that
China's urbanization and demographic trends are a long-term phenomenon that
will stimulate the building of new residential properties in China. The
Company has been able to weather the difficult market conditions and slowing
demand by shifting its sales emphasis among its wide range of product
offerings. Further, we believe that the Company's ability to augment its
product mix from its research and development program afford it a sustainable
competitive advantage. China Ceramics' new plant facilities offer new design
and production capabilities that have sustained its marketing edge as well as
the ability to market new and creative building materials solutions to its
customers.

Conference Call Information

The Company will host a conference call at 8:00 am ET on Monday, August 12,
2013. 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
27970961. A replay of the conference call will be available for 14 days
starting from 11:00 pm ET on August 12, 2013. To access the replay, dial +1
(855) 859-2056. International callers should dial +1 (404) 537-3406. The pass
code is 27970961 for the replay.

Cash Dividends

The Company previously announced that it will pay a semi-annual cash dividend
of US $0.10 per share. The Company paid a cash dividend of US $0.10 per share
on July 13, 2013 to its shareholders of record as of June 13, 2013 which
totaled in aggregate US $2.0 million. The next cash dividend will be payable
on January 14, 2014 with a record date of December 13, 2013.

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, 2012 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          As at

                                        June 30, 2013  December 31, 2012
                                        (Unaudited)
ASSETS AND LIABILITIES
Non-current assets
Property, plant and equipment           814,413        795,983
Land use rights                         30,263         30,598
Goodwill                                3,735          3,735
Deferred tax asset                      4,425          1,059
                                        852,836        831,375
Current assets
Inventories                             310,854        290,603
Trade receivables                       346,613        455,885
Prepayments and other receivables       17,808         4,092
Cash and bank balances                  217,363        89,448
                                        892,638        840,028
Current liabilities
Trade payables                          177,447        115,123
Accrued liabilities and other payables  42,486         51,169
Dividend payable                        11,912         -
Derivative financial instruments        840            -
Interest-bearing bank borrowings        25,633         10,000
Income tax payable                      -              869
                                        258,318        177,161
Non-current liabilities
Long term borrowings                    50,000         50,000
Deferred tax liabilities                1,034          1,052
                                        51,034         51,052
Net current assets                      634,320        662,867
Net assets                              1,436,122      1,443,190
EQUITY
Total shareholders' equity              1,436,122      1,443,190



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
                       2013       2013       2012        2013       2012
Revenue                222,660    149,227    440,991     371,887    813,279
Cost of Sales          (200,495)  (144,092 ) (312,370)   (344,587)  (571,650)
Gross profit           22,165     5,135      128,621     27,300     241,629
Selling and
distribution           (2,218)    (2,705)    (2,834)     (4,923)    (5,796)

expenses
Administrative         (7,961)    (7,732)    (7,138)     (15,693)   (16,731)
expenses
Finance costs          (1,070)    (1,082)    (2,771)     (2,152)    (6,341)
Other expenses         (1,014)    (156)      (237)       (1,170)    (483)
Profit/(loss) before   9,902      (6,540)    115,641     3,362      212,278
taxation
Income tax             (331)      1,170      (29,575)    839        (54,541)
income/(expense)
Net profit /(loss) for 9,571      (5,370)    86,066      4,201      157,737
the period
Attributable to:

Shareholders of the
Company
EPS-Basic              0.47       (0.26)     4.21        0.21       7.72
EPS-Diluted            0.47       (0.26)     4.21        0.21       7.72
Shares used in
calculating basic

EPS
Basic                  20,430,838 20,430,838 20,430,838  20,430,838 20,430,838
Diluted                20,430,838 20,430,838 20,430,838  20,430,838 20,430,838



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
                         2013      2013      2012        2013       2012
Sales volume (square
                         8,340,380 6,124,475 13,567,038  14,464,855 25,286,142
meters)
Average Selling Price
(in                      26.7      24.4      32.5        25.7       32.2

RMB/square meter)
Average Selling Price
(in                      4.3       3.9       5.1         4.2        5.1

USD/square meter)



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
                                 2013     2013     2012      2013     2012
Cash flows from operating
activities
Profit/(loss) before taxation    9,902    (6,540)  115,641   3,362    212,278
Adjustments for
Amortization of land use rights  168      167      168       335      335
Depreciation of property, plant
                                 17,608   16,830   16,413    34,438   32,861
and equipment
Fair value loss on derivative
financial                        840      -        -         840      -

 instruments
Provision for inventory          966      (3,049)  4,805     (2,083)  5,840
Share-based compensation         507      736      1,310     1,243    3,071
Finance costs                    1,070    1,082    2,520     2,152    6,090
Interest income                  (169)    (131)    (116)     (300)    (219)
Operating profit before working
capital                          30,892   9,095    140,741   39,987   260,256

Changes
(Increase)/decrease in           (32,546) 14,378   (5,341)   (18,168) (48,205)
inventories
(Increase)/decrease in trade
                                 (12,014) 121,287  (77,282)  109,273  (42,750)
 receivables
(Increase)/decrease in other
                                 4,768    (8,163)  11,622    (3,395)  18,440
 receivables and
prepayments
Increase/(decrease) in trade     85,404   (23,081) 10,733    62,323   4,560
payables
Increase/(decrease) in accrued
                                 (185)    (9,128)  1,340     (9,313)  4,280
liabilities and other
payables
Cash generated from operations   76,319   104,388  81,813    180,707  196,581
Interest paid                    (1,081)  (1,067)  (2,771)   (2,148)  (6,357)
Income tax paid                  (1,318)  (4,196)  (27,001)  (5,514)  (64,341)
Net cash generated from
                                 73,920   99,125   52,041    173,045  125,883
operating activities
Cash flows from investing
activities
Acquisition of property, plant
and                              (23,689) (37,399) -         (61,088) -

equipment
Interest received                169      131      116       300      219
Net cash generated from/(used
in)                              (23,520) (37,268) 116       (60,788) 219

investing activities
Cash flows from financing
activities
Bank borrowings obtained         15,633   -        -         15,633   -
Repayment of short-term loans    -        -        (50,000)  -        (90,000)
Net cash generated from/(used
in)                              15,633   -        (50,000)  15,633   (90,000)

 financing activities
Net increase in cash and cash
                                 66,033   61,857   2,157     127,890  36,102
 equivalents
Cash and cash equivalents,
                                 151,320  89,448   76,091    89,448   42,149
beginning of period
Effect of foreign exchange rate
                                 10       15       26        25       23
 differences
Cash and cash equivalents,
                                 217,363  151,320  78,274    217,363  78,274
end of period



CHINA CERAMICS CO., LTD. AND ITS SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(U.S Dollar in thousands)
                                       As at          As at

                                       June 30, 2013  December 31, 2012
ASSETS AND LIABILITIES
Non-current assets
Property, plant and equipment          132,697        127,764
Land use rights                        4,931          4,911
Goodwill                               609            600
Deferred tax asset                     721            170
                                       138,958        133,445
Current assets
Inventories                            50,649         46,645
Trade receivables                      56,476         73,175
Prepayments and other receivables      2,901          657
Cash and bank balances                 35,416         14,357
                                       145,442        134,834
Current liabilities
Trade payables                         28,912         18,479
Accrued liabilities and other payables 6,922          8,213
Dividend payable                       1,941          -
Derivative financial instruments       137            -
Interest-bearing bank borrowings       4,177          1,605
Income tax payable                     -              140
                                       42,089         28,437
Non-current liabilities
Long term borrowings                   8,147          8,026
Deferred tax liabilities               168            169
                                       8,315          8,195
Net current assets                     103,353        106,397
Net assets                             233,996        231,647
EQUITY
Total shareholders' equity             233,996        231,647

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
                      2013       2013       2012        2013        2012
Revenue               36,149     23,990     69,479      60,139      128,613
Cost of Sales         (32,560)   (23,164)   (49,217)    (55,724)    (90,401)
Gross profit          3,589      826        20,262      4,415       38,212
Selling and
distribution          (361)      (435)      (447)       (796)       (917)

expenses
Administrative        (1,295)    (1,243)    (1,123)     (2,538)     (2,646)
expenses
Finance costs         (174)      (174)      (436)       (348)       (1,003)
Other expenses        (164)      (25)       (37)        (189)       (76)
Profit /(loss)before  1,595      (1,051)    18,219      544         33,570
taxation
Income tax
                      (52)       188        (4,659)     136         (8,625)
income/(expense)
Net profit/(loss) for 1,543      (863)      13,560      680         24,945
the period
Attributable to:

Shareholders of the

Company
EPS-Basic             0.08       (0.04)     0.66        0.03        1.22
EPS-Diluted           0.08       (0.04)     0.66        0.03        1.22
Shares used in
calculating

basic EPS
Basic                 20,430,838 20,430,838 20,430,838  20,430,838  20,430,838
Diluted               20,430,838 20,430,838 20,430,838  20,430,838  20,430,838

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
                                    2013    2013    2012      2013    2012
Cash flows from operating
activities
Profit/(loss) before taxation       1,595   (1,051) 18,219    544     33,570
Adjustments for
Amortization of land use rights     27      27      26        54      53
Depreciation of property, plant
                                    2,863   2,706   2,584     5,569   5,197
 and equipment
Fair value loss on derivative
financial                           137     -       -         137     -

 instruments
Provision for inventory             153     (490)   760       (337)   924
Share-based compensation            83      118     206       201     486
Finance costs                       174     174     396       348     963
Interest income                     (28)    (21)    (19)      (49)    (35)
Operating profit before working
capital                             5,004   1,463   22,172    6,467   41,158

changes
(Increase)/decrease in inventories  (5,249) 2,311   (815)     (2,938) (7,623)
(Increase)/decrease in trade
                                    (1,827) 19,498  (12,246)  17,671  (6,761)
 receivables
(Increase)/decrease in other
                                    763     (1,312) 1,833     (549)   2,916
receivables and prepayments
Increase/(decrease) in trade        13,790  (3,711) 1,702     10,079  721
payables
Increase/(decrease) in accrued
                                    (39)    (1,467) 210       (1,506) 677
 liabilities and other
payables
Cash generated from operations      12,442  16,782  12,856    29,224  31,088
Interest paid                       (175)   (172)   (435)     (347)   (1,005)
Income tax paid                     (217)   (675)   (4,244)   (892)   (10,175)
Net cash generated from
                                    12,050  15,935  8,177     27,985  19,908
operating activities
Cash flows from investing
activities
Acquisition of property, plant and
                                    (3,867) (6,012) -         (9,879) -
 equipment
Interest received                   28      21      19        49      35
Net cash generated from/(used in)
                                    (3,839) (5,991) 19        (9,830) 35
investing activities
Cash flows from financing
activities
Bank borrowings obtained            2,550   -       -         2,550   -
Repayment of short-term loans       -       -       (7,879)   -       (14,233)
Net cash generated from/(used in)
                                    2,550   -       (7,879)   2,550   (14,233)
 financing activities
Net increase in cash and cash
                                    10,761  9,944   317       20,705  5,710
 equivalents
Cash and cash equivalents,
                                    24,364  14,357  12,083    14,357  6,697
beginning of period
Effect of foreign exchange rate
                                    291     63      (79)      354     (86)
differences
Cash and cash equivalents,
                                    35,416  24,364  12,321    35,416  12,321
end of period

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 2013, 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, 2013
                       GAAP    (1)     Non-GAAP  GAAP    (1)     Non-GAAP
                       RMB'000 RMB'000 RMB'000   USD'000 USD'000 USD'000
Profit before taxation 9,902   507     10,409    1,595   83      1,678
Net profit             9,571   507     10,078    1,543   83      1,626
EPS-Basic              0.47            0.49      0.08            0.08
EPS-Diluted            0.47            0.49      0.08            0.08



CHINA CERAMICS CO., LTD.
Unaudited Reconciliation of GAAP to Non-GAAP
Three months ended March 31, 2013
                     GAAP    (1)     Non-GAAP  GAAP    (1)     Non-GAAP
                     RMB'000 RMB'000 RMB'000   USD'000 USD'000 USD'000
Loss before taxation (6,540) 736     (5,804)   (1,051) 118     (933)
Net loss             (5,370) 736     (4,634)   (863)   118     (745)
EPS-Basic            (0.26)          (0.23)    (0.04)          (0.04)
EPS-Diluted          (0.26)          (0.23)    (0.04)          (0.04)



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
Six months ended June 30, 2013
                       GAAP    (1)     Non-GAAP  GAAP    (1)     Non-GAAP
                       RMB'000 RMB'000 RMB'000   USD'000 USD'000 USD'000
Profit before taxation 3,362   1,243   4,605     544     201     745
Net profit             4,201   1,243   5,444     680     201     881
EPS-Basic              0.21            0.27      0.03            0.04
EPS-Diluted            0.21            0.27      0.03            0.04

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

(1) Share-based compensation.

SOURCE China Ceramics Co., Ltd.

Website: http://www.cceramics.com