China Ceramics Announces Third Quarter 2013 Financial Results

        China Ceramics Announces Third Quarter 2013 Financial Results

PR Newswire

JINJIANG, China, Nov. 13, 2013

JINJIANG, China, Nov. 13, 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 third quarter ended September 30, 2013.

Third Quarter 2013 Highlights

  oRevenue was RMB 340.7 million (US$ 55.3 million), up 53.0% from the second
    quarter
  oGross profit was RMB 33.3 million (US$ 5.4 million), up 50.0% from the
    second quarter
  oPlant utilization was 69% as compared to 49% in the second quarter of 2013
    and 67% in the third quarter of 2012.
  oAsset write-down attributable to the disposal of property, plant and
    equipment was RMB 18.9 million (US$ 3.1 million) due to the replacement of
    plant production equipment at the Hengda facility that enables the
    manufacture of certain ceramic tile products to meet current and expected
    market demand
  oNet profit was RMB 4.4 million (US$ 0.7 million)
  oNon-GAAP adjusted EBITDA (earnings before interest, taxes, depreciation
    and amortization), which excludes the non-cash treatment of the asset
    write-down and the quarter's share-based compensation expenses, was RMB
    44.0 million (US$ 7.1 million), up 50.3% from non-GAAP adjusted EBITDA of
    RMB 29.3 million (US$ 4.7 million) in the second quarter
  oNon-GAAP adjusted profit from operations before taxation, which excludes
    the non-cash treatment of the asset write-down and the quarter's
    share-based compensation expenses, was RMB 25.4 million (US$ 4.1 million),
    up 137.9% from non-GAAP adjusted profit from operations before taxation of
    RMB 10.4 million (US$ 1.7 million) in the second quarter
  oNon-GAAP net profit, which excludes the non-cash treatment of the asset
    write-down and the quarter's share-based compensation expenses, was RMB
    23.8 million (US$ 3.9 million), up 129.8% from non-GAAP net profit of RMB
    10.1 million (US$ 1.6 million) in the second quarter
  oEarnings per fully diluted share were RMB 0.21 (US$ 0.03)

"We are pleased to report strong top-line financial performance for the third
quarter as our revenue grew at 53% over that of the second quarter. The
increase was driven by a 50% sequential rise in the sales volume of our
ceramic tiles as well as a moderate increase in our average selling price.
Consistent with our expectations, we believe that the market environment in
the real estate and construction sectors has begun to normalize although
pricing sensitivity among our customers continues. For the fourth quarter, we
expect a seasonal slowdown consistent with the construction building cycle and
an opportunity to focus our business into higher-margin products through
additional ceramic tile offerings for both current and new potential
customers. Further, we see the recent market retrenchment as an opportunity to
improve our market positioning and gain market share in the quarters ahead,"
said Mr. Jiadong Huang, CEO of China Ceramics.

"To promote products that meet current and expected market demand, we replaced
and modified certain components at our Hengda facility. Although this asset
write-down affected the quarter's bottom line, due to the non-cash nature of
this event, our adjusted EBITDA was strong with a 50% increase from the second
quarter. In addition, with our upgraded and new facilities, we continue to
differentiate ourselves from our competition due to our capability to operate
efficiently and produce new lines of innovative and high performance ceramic
tiles. We are also intent upon regaining the product pricing levels that were
in place prior to the macroeconomic difficulties that began in late 2012,
although the process may be slower than anticipated. Our modern facilities
enable us to optimize our product mix and develop hundreds of customized
products including those of our better performing products which could
ultimately enhance our margins.

"In the third quarter, we utilized plant production facilities capable of
producing 35 million square meters of ceramic tiles out of an annual
production capacity of 72 million square meters of ceramic tiles. This
represents an increase from the second quarter where we utilized plant
production facilities capable of producing 28 million square meters per year.
As market conditions improve, we will look to bring additional capacity
online. We believe that we continue to be well positioned in our industry and
that our superb name-brand recognition, customer-centric focus and strategic
marketing position us to ultimately improve our pricing power as market
conditions continue to strengthen. Furthermore, we established a new
subsidiary in the third quarter, Fujian Hengdali Construction Material Co.
Ltd., for future trading activities with such entities as China State
Decoration Group Co., Ltd.," concluded Mr. Jiadong Huang.

Third Quarter 2013 Results

Revenue for the third quarter ended September 30, 2013 was RMB 340.7 million
(US$ 55.3 million), an increase of 53.0% from RMB 222.7 million (US$ 36.1
million) for the second quarter ended June 30, 2013, but down 11.8% from RMB
386.3 million (US$ 62.1 million) for the third quarter ended September 30,
2012. The quarter-over-quarter sequential increase in revenue was primarily
driven by a 50.6% increase in sales volume to 12.5 million square meters of
ceramic tiles in the third quarter of 2013 relative to the second quarter of
the year and a 1.9% increase in the average selling price in the third quarter
to RMB 27.2 per square meter as compared to the previous quarter. The third
quarter's sales volume represented a 2.5% increase from the year-ago quarter.
However, its average selling price was 14.2% lower as compared to the average
selling price of RMB 31.7 per square meter in the third quarter of 2012. The
Company attributes its substantially improved revenue as compared to the
second quarter to more normalized business conditions in China's real estate
and construction sectors although pricing has proved to be more resistant to
recovery due to pricing concessions instituted to address the difficult market
conditions that began in late 2012.

Gross profit for the third quarter ended September 30, 2013 was RMB 33.3
million (US$ 5.4 million), a sequential rise of 50.0% from second quarter 2013
results of RMB 22.2 million (US$ 3.6 million), but down 69.7% from RMB 110.0
million (US$ 17.7 million) from the third quarter ended September 30, 2012.
Gross profit margin was 9.8% for the third quarter ended September 30, 2013
compared to 10.0% for the second quarter of 2013 and a gross profit margin of
28.5% for third quarter of 2012. The change in gross profit margin for the
third quarter relative to the third quarter of 2012 was caused by a decrease
in the average selling price of ceramic tiles during the period.

Administrative expenses for the third quarter ended September 30, 2013 were
RMB 5.9 million (US$ 1.0 million), down 10.6% from RMB 6.6 million (US$ 1.1
million) in the third quarter of 2012. 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 0.7 million (US$ 0.1 million) will
be incurred between October 2013 and January 2014.

Other expenses for the third quarter ended September 30, 2013 were RMB 18.1
million (US$ 2.9 million) as compared to RMB 0.8 million (US$ 0.1 million) in
the third quarter of 2012. The substantial increase in other expenses was due
tothe asset write-down of property, plant and equipment of RMB 18.9 million
(US$ 3.1 million) attributable to the replacement and updating of plant
production equipment at the Company's Hengda facility. The Company
replacedand updated its kilns at Hengda where certain molding and casting
components were updated, so that new and modern ceramic tile products more
appropriate to the market demand for smaller-sized ceramic tiles for outer
walls could be manufactured. The Company expensed the carrying amount of those
replaced molding and casting components and this cost was categorized into
other expenses. 

Profit from operations before taxation for the third quarter ended September
30, 2013 was RMB 6.0 million (US$ 1.0 million), as compared to 97.9 million
(US$ 15.7 million) of profit from operations before taxation in the third
quarter of 2012. The year-over-year decrease in profit from operations was
primarily the result of lower gross profit and the asset write-down in the
third quarter of 2013.

Net profit for the third quarter ended September 30, 2013 was RMB 4.4 million
(US$ 0.7 million), as compared to a net profit of RMB 72.8 million (US$ 11.7
million) in the comparable period of 2012. The year-over-year decrease in net
profit was primarily the result of lower gross profit and the one-time
replacement cost of assets in the third quarter of 2013.

Earnings per fully diluted share were RMB 0.21 (US $0.03) for the third
quarter ended September 30, 2013, as compared to RMB 0.47 (US $0.08) in the
second quarter of 2013 and RMB 3.56 (US$ 0.57) in the third quarter of 2012.
Per share calculations for the second and third quarters of 2013 and the third
quarter of 2012 were computed using 20.4 million shares.

Non-GAAP profit before taxation, which  excludes the non-cash treatment of the
asset write-down and the quarter's share-based compensation expenses, was RMB
25.4 million (US$ 4.1 million) in the third quarter ended September 30, 2013,
as compared to RMB 10.4 million (US$ 1.7 million) in the second quarter of
2013 and RMB 99.2 million (US$ 16.0 million) in the third quarter of 2012.

Non-GAAP net profit, which excludes the non-cash treatment of the asset
write-down and the quarter's share-based compensation expenses, was RMB 23.8
million (US$ 3.9 million) in the third quarter ended September 30, 2013, as
compared to RMB 10.1 million (US$ 1.6 million) in the second quarter of 2013
and RMB 74.1 million (US$ 11.9 million) in the third quarter of 2012.

Non-GAAP earnings per fully diluted share, which excludes the non-cash
treatment of the asset write-down and the quarter's share-based compensation
expenses, was RMB 1.16 (US $0.19) in the third quarter ended September 30,
2013, as compared to RMB 0.49 (US $0.08) in the second quarter of 2013 and RMB
3.63 (US$ 0.58) in the third quarter of 2012.

The operating results of the third quarter of 2013 represent a substantial
improvement over the operating results in the second quarter of 2013 and were
driven by the strong sales volume of the Company's ceramic tiles.While the
third quarter's adjusted EBITDA showed a substantial improvement from the
second quarter, the third quarter's profitability was impacted significantly
by the write-down of assets associated with the Hengda facility.

Nine Months 2013 Results

Revenue for the nine months ended September 30, 2013 was RMB 712.6 million
(US$ 115.4 million) a decrease of 40.6% as compared to RMB 1,199.6 million
(US$ 190.7 million) from the nine months ended September 30, 2012. Gross
profit was RMB 60.6 million (US$ 9.8 million), down 82.8% from RMB 351.7
million (US$ 55.9 million) in the nine months ended September 30, 2012. Gross
margin was 8.5% compared to 29.3% in the same period of 2012. Selling expenses
were RMB 7.1 million (US$ 1.2 million), compared to RMB 8.8 million (US$ 1.4
million) in the same period of 2012. Administrative expenses were RMB 21.5
million (US$ 3.5 million), compared to RMB 23.3 million (US$ 3.7 million) for
the same period of 2012. Net profit for the nine months ended September 30,
2013 was RMB 8.6 million (US$ 1.4 million), compared to RMB 230.5 million (US$
36.7 million) for the same period of 2012. Non-GAAP net profit, which excludes
the non-cash treatment of the asset write-down and the quarter's share-based
compensation expenses, was RMB 29.2 million (US$ 4.7 million) for the nine
months ended September 30, 2013, as compared to RMB 234.9 million (US$ 37.4
million) in the same period of 2012. Earnings per fully diluted share were RMB
0.42 (US$ 0.07) for the nine months ended September 30, 2013 and RMB 1.43 (US$
0.23) on an adjusted non-GAAP basis, which excludes the non-cash treatment of
the asset write-down and the quarter's share-based compensation expenses, as
compared to RMB 11.28 (US$ 1.79) and RMB 11.50 (US$ 1.83) on a non-GAAP basis
in the same period of 2012. Earnings per fully diluted share for the nine
months of 2013 and 2012 were computed using 20.4 million shares.

Third Quarter 2013 Statements of Selected Financial Position Items

  oCash and bank balances were RMB 40.1 million (US$ 6.5 million) as of
    September 30, 2013, compared with RMB 89.4 million (US$ 14.4 million) as
    of December 31, 2012. The decrease in cash and bank balances was the
    result of an increased level of receivables, acquisition of equipment, the
    repayment of bank borrowings in the third quarter of 2013 and the payment
    of a dividend.
  oTotal debt, which consists of short-term and long-term bank borrowings,
    was RMB 65.6 million (US$ 10.7 million) as of September 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 primarily to a modest increase in
    borrowing so as to optimally manage the third quarter's operating
    requirements.
  oInventory turnover was 126 days as of September 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 September 30, 2013 and the price reductions in the first
    nine months of 2013. The methodology uses average quarter-end inventory
    balance and cost of sales for the trailing twelve months.
  oTrade receivables turnover was 164 days as of September 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 140 days as of
    September 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 subsequent to the quarter
    ended December 31, 2012. The methodology uses average quarter-end trade
    receivables balance and revenues for the trailing twelve months.
  oTrade payables turnover was 64 days as of September 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 uses average quarter-end
    trade payables balance and cost of sales for the trailing twelve months.

Liquidity and Capital Resources

Cash flow used in operating activities was RMB 147.3 million (US$ 23.8
million) for the quarter ended September 30, 2013, compared to cash flow
generated from operating activities of RMB 98.0 million (US$ 15.7 million) in
the same period in 2012. The year-over-year decrease of RMB 216.9 million (US$
34.9 million) was mainly due to the decrease in revenue and the extension of
credit period for certain customers compared to the same period in 2012. 

Cash flow used in investing activities in the quarter ended September 30, 2013
was RMB 8.1 million (US$ 1.3 million) mainly due to the acquisition of
equipment, compared to RMB 19.2 million (US$ 3.0 million) of cash flow used in
investing activities in the same period of 2012. In the third quarter of
2013, the Company replaced one of its kilns at Hengda where certain molding
and casting components were updated, so that new and modern ceramic tile
products more appropriate to customer preferences and market demand could be
manufactured.

Cash flow used in financing activities was RMB 21.9 million (US$ 3.6 million)
for the quarter ended September 30, 2013, as compared to RMB 35.0 million (US$
5.6 million) used in financing activities for the same period of 2012, due to
the payment of a dividend andthe repayment of bank borrowings in the quarter
as compared to a higher level of repayment of bank borrowings in the year-ago
quarter.

Plant Capacity and Capital Expenditures Update

For the first nine months of 2013, the Company utilized plant capacity capable
of producing 35 million square meters of ceramic tiles annually out of a total
annual production capacity of 72 million square meters. This represents an
increase in plant capacity from that utilized in the six months of 2013 when
plant capacity utilized was that capable of producing 28 million square meters
of ceramic tiles annually, and a decrease in plant capacity from that utilized
in the first nine months of 2012 when the Company utilized plant capacity
capable of producing 56 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
27 million square meters of ceramic tiles annually in the first nine months of
2013. The Company's Hengdali facility has an annual productive capacity of 30
million square meters and we utilized capacity capable of producing 8 million
square meters of ceramic tiles annually in the first nine months 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 10.2 million (US $1.7 million) in the third quarter
for the acquisition of equipment at the Hengdali facility and expended RMB
28.4 million (US $4.6 million) to modify an existing production line at the
Hengda facility to enable the manufacture of products that are in market
demand. Although business conditions are subject to change, Management
anticipates a minimal level of capital expenditures for the remainder of 2013
associated with small repairs and maintenance of equipment.

Business Outlook

In the third quarter of 2013, the Company experienced a substantial pick-up in
business activity as compared to the second quarter of 2013. The Company's
sales volume of 12.5 million square meters of ceramic tiles represented a
50.6% rise over the sales volume recorded in the second quarter. It also
represented a 2.9% increase over sales volume in the year-ago comparable
quarter, which the Company believes was representative of a more normalized
market environment. The Company's operating performance had been challenging
since the fourth quarter of 2012 due to the effects of a slowdown in China's
construction and real estate sectors.

Although the third quarter's sales volume reflects a substantially improved
level of business activity, the Company has yet to recover its pricing power
from the economic slowdown that induced the Company to lower its average
selling price in order to meet competitors' sharp discounting and retain
market share in the fourth quarter of 2012. However, the Company is deploying
strategies such as more intensive and sophisticated marketing and further
product diversification to recoup its previous average selling price levels,
which it believes will meet with progress over the next few quarters.

As of September 30, 2013, the Company's backlog of orders for delivery in
October and November of 2013 is approximately RMB 155.0 million (US$ 25.3
million). 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 estimates that its sales volume of ceramic tiles in October
and November of 2013 will be approximately 5.7 million square meters as
compared to sales volume of 6.0 million square meters for the same period of
2012. In addition, the Company's estimate of its average selling price is RMB
27.1 per square meter of ceramic tiles for October and November 2013. This
compares with its average selling price of RMB 27.2 per square meter of
ceramic tiles in the third quarter of 2013 and RMB 28.2 per square meter in
the fourth quarter of 2012.

The Company believes that the real estate and construction sectors continue to
be vital areas for the Chinese government to encourage in order to sustain
economic growth and that regulations have stabilized in terms of curbing some
of the speculative buying that has been taking place for investment purposes.
Government regulations intended to limit speculation have included limiting
home purchases, narrowing credit to developers and tightening down-payment
requirements. However, the recent quarter saw no major tightening measures
intended to rein in the property market which could mean that a further
extension of regulations could be muted. This has been conducive to a rebound
in the sector as certain Tier I cities recorded sales growth from the second
quarter and several cities reported record high prices in the land sales
market.

The Company believes that its strategy of implementing price cuts on select
products during the recent market downturn to retain customers and maintain
its reputation was successful. Although we market a wide range of both
premium and value-oriented products, price sensitivity has become a factor
with our customers. As the Company believes that it is entering a period of
more stable market conditions, it believes that it has the ability to shift
sales emphasis among its wide range of product offerings and it will strive to
recoup its pricing power and regain margins in the quarters ahead. Further,
the Company believes that its new marketing showroom, development of new
products from its research and development program and upgraded and modern
plant facilities with customized design and production capabilities offers it
a sustainable competitive advantage in the market place. The Company believes
that its comprehensive product suite continues to differentiate it from its
competitors where some smaller producers have discontinued or contracted
operations and offer it potential for expansion and growth in market share.

Conference Call Information

The Company will host a conference call at 8:00 am ET on Wednesday, November
13, 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
93085790. A replay of the conference call will be available for 14 days
starting from 11:00 pm ET on November 13, 2013. To access the replay, dial +1
(855) 859-2056. International callers should dial +1 (404) 537-3406. The pass-
code is 93085790 for the replay.

Cash Dividends

The Company previously announced that it would pay a semi-annual cash dividend
of US $0.10 per share in July 2013 and January 2014. 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.            Precept Investor Relations LLC
Edmund Hen, Chief Financial Officer David Rudnick
Email: info@cceramics.com           Email: david.rudnick@preceptir.com
                                    Phone: +1 917-864-8849

FINANCIAL TABLES FOLLOW

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

                                        September 30, 2013  December 31, 2012
                                        (Unaudited)
ASSETS AND LIABILITIES
Non-current assets
Property, plant and equipment           814,838             795,983
Land use rights                         30,096              30,598
Goodwill                                3,735               3,735
Deferred tax asset                      3,928               1,059
                                        852,597             831,375
Current assets
Inventories                             314,690             290,603
Trade receivables                       587,535             455,885
Prepayments and other receivables       11,050              4,092
Cash and bank balances                  40,060              89,448
                                        953,335             840,028
Current liabilities
Trade payables                          222,120             115,123
Accrued liabilities and other payables  75,752              51,169
Derivative financial instruments        416                 -
Interest-bearing bank borrowings        15,633              10,000
Income tax payable                      -                   869
                                        313,921             177,161
Non-current liabilities
Long term borrowings                    50,000              50,000
Deferred tax liabilities                1,026               1,052
                                        51,026              51,052
Net current assets                      639,414             662,867
Net assets                              1,440,985           1,443,190
EQUITY
Total shareholders' equity              1,440,985           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                Nine months ended
                       September  June       September   September  September
                       30         30         30          30         30
                       2013       2013       2012        2013       2012
Revenue                340,744    222,660    386,282     712,631    1,199,561
Cost of Sales          (307,491)  (200,495)  (276,238)   (652,078)  (847,888)
Gross profit           33,253     22,165     110,044     60,553     351,673
Selling and            (2,220)    (2,218)    (2,991)     (7,143)    (8,787)
distribution expenses
Administrative         (5,852)    (7,961)    (6,611)     (21,545)   (23,342)
expenses
Finance costs          (1,157)    (1,070)    (1,789)     (3,309)    (8,130)
Other expenses         (18,069)   (1,014)    (789)       (19,239)   (1,272)
Profit before taxation 5,955      9,902      97,864      9,317      310,142
Income tax expense     (1,604)    (331)      (25,053)    (765)      (79,594)
Net profit for the     4,351      9,571      72,811      8,552      230,548
period
Attributable to:

Shareholders of the
Company
EPS-Basic              0.21       0.47       3.56        0.42       11.28
EPS-Diluted            0.21       0.47       3.56        0.42       11.28
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               Nine months ended
                        September  June      September   September  September
                        30         30        30          30         30
                        2013       2013      2012        2013       2012
Sales volume (square    12,544,613 8,340,380 12,196,187  27,009,468 37,482,329
meters)
Average Selling Price   27.2       26.7      31.7        26.4       32.0
(in RMB/square meter)
Average Selling Price   4.4        4.3       5.1         4.3        5.1
(in USD/square meter)



CHINA CERAMICS CO., LTD. AND ITS SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(RMB in thousands)
                             Three months ended            Nine months ended
                             September June     September  September September
                             30        30       30         30        30
                             2013      2013     2012       2013      2012
Cash flows from operating
activities
Profit before taxation       5,955     9,902    97,864     9,317     310,142
Adjustments for
Amortization of land use     167       168      167        502       502
rights
Depreciation of property,
plant                        17,255    17,608   16,493     51,693    49,354

and equipment
Loss on disposal of
property,                    18,926    -        512        18,926    512

plant and equipment
Fair value (gain)/loss on
derivative financial         (424)     840      -          416       -

 instruments
Provision for inventory      (136)     966      1,576      (2,219)   7,416
Share-based compensation     514       507      1,294      1,757     4,365
Finance costs                1,157     1,070    1,789      3,309     7,879
Interest income              (127)     (169)    (89)       (427)     (308)
Operating profit before
working capital              43,287    30,892   119,606    83,274    379,862

Changes
Increase in inventories      (3,700)   (32,546) (8,781)    (21,868)  (56,986)
(Increase)/decrease in trade (240,923) (12,014) 37,511     (131,650) (5,239)
receivables
(Increase)/decrease in other
                             (2,578)   4,768    6,628      (5,973)   25,068
receivables and prepayments
Increase/(decrease) in trade 44,674    85,404   (22,957)   106,997   (18,397)
payables
Increase/(decrease) in
accrued liabilities and      13,104    (185)    (1,104)    3,791     3,176
other payables
Cash (used in)/generated     (146,136) 76,319   130,903    34,571    327,484
from operations
Interest paid                (1,175)   (1,081)  (1,861)    (3,323)   (8,218)
Income tax paid              -         (1,318)  (30,507)   (5,514)   (94,848)
Net cash (used in)/generated
from                         (147,311) 73,920   98,535     25,734    224,418

operating activities
Cash flows from investing
activities
Proceed from disposal of
property,                    1,993     -        269        1,993     269

plant and equipment
Acquisition of property,
plant and                    (10,200)  (23,689) (19,520)   (71,288)  (19,520)

equipment
Interest received            127       169      89         427       308
Net cash used in investing   (8,080)   (23,520) (19,162)   (68,868)  (18,943)
activities
Cash flows from financing
activities
Bank borrowings obtained     -         15,633   -          15,633    -
Repayment of short-term      (10,000)  -        (35,000)   (10,000)  (125,000)
loans
Dividend paid                (11,912)  -        -          (11,912)  -
Net cash (used in)/generated (21,912)  15,633   (35,000)   (6,279)   (125,000)
from financing activities
Net (decrease)/increase in   (177,303) 66,033   44,373     (49,413)  80,475
cash and cash equivalents
Cash and cash equivalents,
                             217,363   151,320  78,274     89,448    42,149
beginning of period
Effect of foreign exchange
rate                         -         10       (32)       25        (9)

differences
Cash and cash equivalents,
                             40,060    217,363  122,615    40,060    122,615
end of period



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

                                       September 30, 2013  December 31, 2012
ASSETS AND LIABILITIES
Non-current assets
Property, plant and equipment          133,143             127,764
Land use rights                        4,918               4,911
Goodwill                               610                 600
Deferred tax asset                     642                 170
                                       139,313             133,445
Current assets
Inventories                            51,420              46,645
Trade receivables                      96,002              73,175
Prepayments and other receivables      1,806               657
Cash and bank balances                 6,546               14,357
                                       155,774             134,834
Current liabilities
Trade payables                         36,294              18,479
Accrued liabilities and other payables 12,378              8,213
Derivative financial instruments       68                  -
Interest-bearing bank borrowings       2,554               1,605
Income tax payable                     -                   140
                                       51,294              28,437
Non-current liabilities
Long term borrowings                   8,170               8,026
Deferred tax liabilities               168                 169
                                       8,338               8,195
Net current assets                     104,480             106,397
Net assets                             235,455             231,647
EQUITY
Total shareholders' equity             235,455             231,647

CHINA CERAMICS CO., LTD. AND ITS SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(U.S. Dollars in thousands, except EPS and share data)
                       Three months ended                Nine months ended
                       September  June       September   September  September
                       30         30         30          30         30
                       2013       2013       2012        2013       2012
Revenue                55,266     36,149     62,116      115,405    190,729
Cost of Sales          (49,874)   (32,560)   (44,412)    (105,598)  (134,813)
Gross profit           5,392      3,589      17,704      9,807      55,916
Selling and            (361)      (361)      (480)       (1,157)    (1,397)
distribution expenses
Administrative         (951)      (1,295)    (1,065)     (3,489)    (3,711)
expenses
Finance costs          (188)      (174)      (290)       (536)      (1,293)
Other expenses         (2,927)    (164)      (126)       (3,116)    (202)
Profit before taxation 965        1,595      15,743      1,509      49,313
Income tax expense     (260)      (52)       (4,030)     (124)      (12,655)
Net profit for the    705        1,543      11,713      1,385      36,658
period
Attributable to:

Shareholders of the

Company
EPS-Basic              0.03       0.08       0.57        0.07       1.79
EPS-Diluted            0.03       0.08       0.57        0.07       1.79
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. Dollars in thousands)
                              Three months ended           Nine months ended
                              September June    September  September September
                              30        30      30         30        30
                              2013      2013    2012       2013      2012
Cash flows from operating
activities
Profit before taxation        965       1,595   15,743     1,509     49,313
Adjustments for
Amortization of land use      27        27      27         81        80
rights
Depreciation of property,
plant                         2,802     2,863   2,650      8,371     7,847

and equipment
Loss on disposal of property,
                              3,065     -       81         3,065     81
plant and equipment
Fair value (gain)/loss on
derivative                    (70)      137     -          67        -

 financial instruments
Provision for inventory       (22)      153     255        (359)     1,179
Share-based compensation      84        83      208        285       694
Finance costs                 188       174     290        536       1,253
Interest income               (20)      (28)    (14)       (69)      (49)
Operating profit before
working capital               7,019     5,004   19,240     13,486    60,398

changes
Increase in inventories       (603)     (5,249) (1,438)    (3,541)   (9,061)
(Increase)/decrease in trade  (38,991)  (1,827) 5,928      (21,320)  (833)
receivables
(Increase)/decrease in other
                              (418)     763     1,070      (967)     3,986
receivables and prepayments
Increase/(decrease) in trade  7,248     13,790  (3,646)    17,327    (2,925)
payables
Increase/(decrease) in
accrued liabilities           2,120     (39)    (172)      614       505

 and other payables
Cash (used in)/generated from (23,625)  12,442  20,982     5,599     52,070
operations
Interest paid                 (191)     (175)   (302)      (538)     (1,307)
Income tax paid               -         (217)   (4,906)    (893)     (15,081)
Net cash (used in)/generated
from                          (23,816)  12,050  15,774     4,168     35,682

operating activities
Cash flows from investing
activities
Proceed from disposal of
property,                     323       -       43         323       43

plant and equipment
Acquisition of property,
plant and                     (1,666)   (3,867) (3,104)    (11,545)  (3,104)

equipment
Interest received             20        28      14         69        49
Net cash used in investing    (1,323)   (3,839) (3,047)    (11,153)  (3,012)
activities
Cash flows from financing
activities
Bank borrowings obtained      -         2,550   -          2,550     -
Repayment of short-term loans (1,619)   -       (5,642)    (1,619)   (19,875)
Dividend paid                 (1,941)   -       -          (1,941)   -
Net cash (used in)/generated
from financing                (3,560)   2,550   (5,642)    (1,010)   (19,875)

 activities
Net (decrease)/increase in
cash and cash                 (28,699)  10,761  7,085      (7,995)   12,795

 equivalents
Cash and cash equivalents,
                              35,416    24,364  12,321     14,357    6,697
beginning of period
Effect of foreign exchange
rate                          (171)     291     104        184       18

differences
Cash and cash equivalents,
                              6,546     35,416  19,510     6,546     19,510
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 third 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 non-cash treatment of the asset write-down on the
disposal of property, plant and equipment incurred in the third quarter ended
September 30, 2013 and 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 the non-cash treatment of the asset write-down
on the disposal of property, plant and equipment incurred in the third quarter
ended September 30, 2013 and the share-based compensation expenses incurred
for the stock option program. Readers are cautioned not to view Non-GAAP
results on a stand-alone basis or as a substitute for results under GAAP, or
as being comparable to results reported or forecasted by other companies, and
should refer to the reconciliation of GAAP results with Non-GAAP results
below. The Company believes that both management and investors benefit from
referring to these Non-GAAP financial measures in assessing the performance of
China Ceramics and when planning and forecasting future periods. The
accompanying tables have more details on the GAAP financial measures that are
most directly comparable to Non-GAAP financial measures and the related
reconciliation between these financial measures.

CHINA CERAMICS CO., LTD.
Unaudited Reconciliation of GAAP to Non-GAAP
Three months ended September 30, 2013
             GAAP    (1)     (2)     Non-GAAP GAAP    (1)     (2)     Non-GAAP
             RMB'000 RMB'000 RMB'000 RMB'000  USD'000 USD'000 USD'000 USD'000
Profit
before       5,955   514     18,926  25,395   965     84      3,065   4,114
taxation
Net profit   4,351   514     18,926  23,791   705     84      3,065   3,854
EPS-Basic    0.21                    1.16     0.03                    0.19
EPS-Diluted  0.21                    1.16     0.03                    0.19



CHINA CERAMICS CO., LTD.
Unaudited Reconciliation of GAAP to Non-GAAP
Three months ended June 30, 2013
             GAAP    (1)     (2)     Non-GAAP GAAP    (1)     (2)     Non-GAAP
             RMB'000 RMB'000 RMB'000 RMB'000  USD'000 USD'000 USD'000 USD'000
Profit
before       9,902   507     -       10,409   1,595   83      -       1,678
taxation
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 September 30, 2012
             GAAP    (1)     (2)     Non-GAAP GAAP    (1)     (2)     Non-GAAP
             RMB'000 RMB'000 RMB'000 RMB'000  USD'000 USD'000 USD'000 USD'000
Profit
before       97,864  1,294   -       99,158   15,743  208     -       15,951
taxation
Net profit   72,811  1,294   -       74,105   11,713  208     -       11,921
EPS-Basic    3.56                    3.63     0.57                    0.58
EPS-Diluted  3.56                    3.63     0.57                    0.58



CHINA CERAMICS CO., LTD.
Unaudited Reconciliation of GAAP to Non-GAAP
Nine months ended September 30, 2013
             GAAP    (1)     (2)     Non-GAAP GAAP    (1)     (2)     Non-GAAP
             RMB'000 RMB'000 RMB'000 RMB'000  USD'000 USD'000 USD'000 USD'000
Profit
before       9,317   1,757   18,926  30.000   1,509   285     3,065   4,859
taxation
Net profit   8,552   1,757   18,926  29,235   1,385   285     3,065   4,735
EPS-Basic    0.42                    1.43     0.07                    0.23
EPS-Diluted  0.42                    1.43     0.07                    0.23



CHINA CERAMICS CO., LTD.
Unaudited Reconciliation of GAAP to Non-GAAP
Nine months ended September 30, 2012
             GAAP    (1)     (2)     Non-GAAP GAAP    (1)     (2)     Non-GAAP
             RMB'000 RMB'000 RMB'000 RMB'000  USD'000 USD'000 USD'000 USD'000
Profit
before       310,142 4,365   -       314,507  49,313  694     -       50,007
taxation
Net profit   230,548 4,365   -       234,913  36,658  694     -       37,352
EPS-Basic    11.28                   11.50    1.79                    1.83
EPS-Diluted  11.28                   11.50    1.79                    1.83


(1) Share-based compensation.
(2) Asset write-down of plant, property and equipment. 

SOURCE China Ceramics Co., Ltd.

Website: http://www.cceramics.com
 
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