JINJIANG, China, May 15, 2017 /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 fourth quarter and fiscal year ended December 31, 2016.
Fourth Quarter 2016 Summary
- Revenue was RMB 201.9 million
(US$ 28.3 million) as compared to
RMB 208.3 million (US$ 31.6 million) in the fourth quarter of
2015
- Gross loss was RMB 87.1 million
(US$13.2 million) as compared to
gross profit of RMB 29.5 million
(US$ 4.5 million) in the fourth
quarter of 2015
- Net loss was RMB 352.5 million
(US$ 52.6 million) as compared to a
net loss of RMB 411.3 million
(US$ 64.9 million) in the fourth
quarter of 2015
- Loss per share on a basic and fully diluted basis were
RMB 127.63 (US$ 19.05), as compared to basic and fully
diluted loss per share of RMB 161.04
(US$ 24.88) in the fourth quarter of
2015
- Operating results were affected by the following significant
items:
-
- Beginning on October 1, 2016, a
20% reduction in the prices of our slow-moving products was
instituted in an effort to convert some of our inventory into
cash
- Plant utilization was 60% as compared to 42% in the fourth
quarter of 2015
- Asset write-down attributable to the impairment of property,
plant and equipment at the Company's Hengda and Hengdali facilities
was RMB 230.4 million (US$ 34.3 million)
- Write down of slow-moving inventory was RMB 59.4 (US$ 8.9
million)
- Provision for bad debt was RMB 24.0
million (US$ 3.5 million)
"We continued to experience challenging market conditions in
both the fourth quarter and fiscal 2016 due to macroeconomic
factors that have continued to negatively impact the China real estate and building materials
markets," commented Chairman and Chief Executive Officer
Jiadong Huang. "However, excluding
the impact of the impairment charges, inventory write downs, and
increases in the provision for bad debt taken during the period, we
were able to generate $8.4 million in
EBITDA for fiscal 2016. In order to generate sales and move
inventory, beginning on October 1,
2016, we instituted a 20% reduction in the prices of slow
moving products which helped to turn some of our inventory into
cash. This price reduction led to a 35% increase in our sales
volume in the fourth quarter compared to the same period in
2015. We are also looking for ways to operate more
efficiently by running production lines concurrently with the
generation of customer orders."
"For the full year 2016, we saw our sales volume decline by 13%
due to an overall contraction in customer demand. The
building materials sector is experiencing an
overall retrenchment with small players exiting our space due
to competitive pressures and environmental compliance
regulations. As inventories in our sector work through their
distribution channels, we look to regain the relatively stable
pricing that we have achieved historically and generate sales
volume at our normal pricing levels. We believe that our
strong customer relationships and premier products position us for
a potential turnaround in the market."
"During the fourth quarter, we utilized production facilities
capable of producing 37 million square meters of ceramic tiles per
year out of the Company's effective 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 to keep our operating costs low,
and we will bring additional capacity online when we see an
increase in demand for our products."
"Looking ahead to 2017, we believe that the operating
environment will slowly begin to improve. Should this occur, we
believe that we can leverage our market positioning to maintain our
existing customers and win new customers. We expect the
consolidation trend among larger property developers to continue
which will benefit the Company since our manufacturing scale and
infrastructure enable us to effectively service these large
enterprises. In the long-term, we believe that real estate is a key
sector of China's economy and that
the real estate market's supply and demand dynamics will stabilize
to present us with sustainable growth opportunities," concluded
Chairman and Chief Executive Officer Jiadong Huang.
Fourth Quarter 2016 Results
Revenue for the fourth quarter ended December 31, 2016 was RMB
201.9 million (US$ 28.3
million), a 3.1% decrease from RMB
208.3 million (US$ 31.6
million) for the fourth quarter ended December 31, 2015. The year-over-year decrease in
revenue was due to (i) the 28.2% decrease in our average selling
price in the fourth quarter of 2016 to RMB
22.4 (US$ 3.2) as compared to
RMB 31.2 (US$
4.1) for the fourth quarter of 2015, partially offset by
(ii) the 34.8% increase in sales volume to 9.0 million square
meters of ceramic tiles in the fourth quarter of 2016 from 6.7
million square meters in the fourth quarter in 2015.
Gross loss for the fourth quarter ended December 31, 2016 was RMB
87.1 million (US$ 13.2
million) as compared to profit of RMB
29.5 million (US$ 4.5 million)
for the fourth quarter of 2015. The gross profit margin was a
negative 43.1% for the fourth quarter ended December 31, 2016 compared to 14.2% for the
fourth quarter of 2015. The year-over-year reduction in gross
profit margin was primarily due to (i) a 28.2% decrease in the
average selling price of the Company's ceramic tiles attributable
to our having instituted a 20% reduction in the selling prices of
slow moving inventory beginning on October
1, 2016 due to challenging market conditions, and (ii) an
RMB 59.4 million (US$ 8.9 million) write down of inventory in the
fourth quarter of 2016.
Other income for the fourth quarter ended December 31, 2016 was RMB
3.5 million (US$ 0.5 million),
as compared to RMB 0.1 million
(US$ 0.01 million) for the fourth
quarter of 2015. The year-over-year increase in other income was
mainly caused by rental income of RMB 3.5
million (US$ 0.5 million) the
Company received by leasing out one of its production lines from
its Hengdali facility pursuant to an eight-year lease contract.
Selling and distribution expenses for the fourth quarter
ended December 31, 2016 were
RMB 3.0 million (US$ 0.4 million) as compared to RMB 6.0 million (US$ 0.9
million) in the fourth quarter of 2015. The year-over-year
decrease in selling and distribution expenses was primarily due to
an RMB 2.7 million (US$ 0.4 million) decrease in advertising expenses
and an RMB 0.3 million (US$ 0.04 million) decrease in travelling and
entertainment expenses.
Administrative expenses for the fourth quarter ended
December 31, 2016 were RMB 29.4 million (US$ 4.3
million) as compared to RMB 6.2
million (US$ 1.0 million) in
the fourth quarter of 2015. The year-over-year increase in
administrative expenses was primarily due to an RMB 24.0 million (US$ 3.5
million) provision for bad debt.
Other expenses for the fourth quarter ended December 31, 2016 were RMB
6.0 million (US$ 0.9 million)
as compared to RMB 1.6 million
(US$ 0.6 million) for the fourth
quarter of 2015. The year-over-year increase in other expenses was
primarily due to an RMB 6.2 million
(US$ 0.9 million) disposal loss on
plant, property and equipment.
Loss from operations before taxation for the fourth
quarter ended December 31, 2016 was
RMB 351.6 million (US$ 52.5 million) as compared to a RMB 406.5 million (US$
64.2 million) of loss from operations before taxation in the
fourth quarter of 2015. The year-over-year decrease in profit from
operations before taxation was attributable to (i) the impairment
of non-current assets of RMB 230.4
million (US$ 34.3 million) in
the fourth quarter of 2016, (ii) an inventory write-down of
RMB 59.4 million (US$ 8.9 million) in the fourth quarter of 2016,
and (iii) the provision for bad debt of RMB
24.0 million (US$ 3.5 million)
in the fourth quarter of 2016. In the fourth quarter of 2015,
there was an impairment of non-current assets of RMB 421.6 million (US$
66.5 million).
Net Loss for the fourth quarter ended December 31, 2016 was RMB
352.5 million (US$ 52.6
million) as compared to a net loss of RMB 411.3 million (US$
64.9 million) for the fourth quarter ended December 31, 2015.
Loss per fully diluted share for the fourth quarter ended
December 31, 2016 on a basic and
fully diluted basis were RMB 127.63
(US$ 19.05), as compared to basic and
fully diluted earnings per share of RMB
161.04 (US$ 24.88) in the
fourth quarter of 2015 (as adjusted for the one for eight reverse
split in June 2016). Basic and fully diluted per share
calculations for the fourth quarter of 2016 was computed using 2.8
million ordinary shares outstanding, and the basic and fully
diluted per share calculation for the fourth 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).
Full Year 2016 Financial Results
Revenue for the year ended December 31,
2016 was RMB 793.7 million
(US$ 118.3 million), as compared to
RMB 1,017.1 million (US$ 160.4 million) for the year ended
December 31, 2015. Gross loss was
RMB 30.1 million (US$ 4.5 million), as compared to gross profit of
RMB 125.4 million (US$ 19.8 million) for the year ended December 31, 2015. The gross profit margin was a
negative 3.8% as compared to 12.3% for the full year 2015. Other
income was RMB 15.2 million
(US$ 2.3 million), as compared to
RMB 0.7 million (US$ 0.1 million) for the full year 2015. Selling
expenses were RMB 12.8 million
(US$ 1.9 million), as compared to
RMB 14.2 million (US$ 2.2 million) in the same period of 2015.
Administrative expenses were RMB 46.7
million (US$ 7.0 million), as
compared to RMB 21.9 million
(US$ 3.5 million) for the same period
of 2015. Other expenses were RMB 11.4
million (US$ 1.7 million), as
compared to RMB 3.6 million
(US$ 0.6 million) in the same period
of 2015. Net loss for the full year ended December 31, 2016 was RMB
321.8 million (US$ 48.0
million), as compared to a net loss of RMB 362.4 million (US$
57.2 million) for the same period of 2015. Loss per basic
share and fully diluted share were RMB
116.51 (US$ 17.36) for the
year ended December 31, 2016, as
compared to loss per basic and fully diluted share of RMB 141.91 (US$
21.92) for 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 fourth quarter of 2016 was computed using 2.8 million ordinary
shares, and the basic and fully diluted per share calculation for
the fourth 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).
Fiscal Year End 2016 Statements of Selected Financial
Position Items
- Cash and bank balances were RMB 0.1
million (US$ 0.01 million) as
of December 31, 2016, compared with
RMB 0.5 million (US$ 0.1 million) as of December 31, 2015.
- Short-term bank borrowings were nil as of December 31, 2016, as compared to RMB 40.1 million (US$ 6.2
million) as of December 31,
2015. The decrease was primarily due to the repayment of
short-term bank borrowings during fiscal 2016. Given the
current state of the real estate development market in the PRC and
the limited availability of bank credit in the PRC, the Company
does not believe that bank borrowing will represent a significant
source of cash in 2017.
- Inventory turnover was 115 days as of December 31, 2016, as compared with 131 days as
of December 31, 2015. The decrease in
inventory turnover days was primarily due to the 12.9% decrease in
sales volume in the year of 2016 to 28.8 million square meters of
ceramic tiles, as compared to 33.1 million square meters of ceramic
tiles in the full year 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. As a result of
the slowed inventory turnover the Company implemented a write down
for slow moving inventory in the fourth quarter of 2016 in the
amount of RMB 59.4 (US$ 8.9 million).
- Trade receivables turnover, net of value added tax, was 245
days as of December 31, 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. In the fourth quarter of 2016, the Company accrued
RMB 23.9 million (US$ 3.5 million) as a provision for bad debt
related to the amount of outstanding trade receivables that did not
conform with the Company's credit policy.
- Trade payables turnover, net of value added tax, was 43 days as
of December 31, 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.
Liquidity and Capital Resources
Cash flow generated from operating activities was
RMB 26.6 million (US$ 4.0 million) for the quarter ended
December 31, 2016, as compared to
cash used in operating activities of RMB
26.7 million (US$ 4.1 million)
in the same period in 2015. The generation of cash from
operations will continue to be a key component of the Company's
ability to operate as a going concern and to return to
profitability.
Cash flow generated from investing activities was
RMB 1.0 million (US$ 0.2 million) for the quarter ended
December 31, 2016, mainly due to
RMB 1.0 million (US$ 0.1 million) in proceeds resulting from the
disposal the plant, property and equipment compared to cash flow
generated from investing activities of RMB
154.9 million (US$ 23.9
million) in the same period of 2015.
Cash flow generated from financing activities was nil for
the quarter ended December 31, 2016,
compared to cash flow used in financing activities of RMB 46.0 million (US$ 7.1
million) for the same period of 2015.
Plant Capacity and Capital Expenditures Update
For the fourth quarter of 2016, we utilized plant capacity
capable of producing 37 million square meters of ceramic tiles
annually out of a total annual production capacity of 62 million
square meters of ceramic tiles. Our annual production capacity has
been effectively reduced from 72 million square meters of ceramic
tiles to 62 million square meters of ceramic tiles due to an
eight-year contract to lease out one of our production lines from
our Hengdali facility that we entered into in March 2016. The current quarter's utilization
represents an increase in plant capacity utilization from the
fourth quarter of 2015, when we utilized plant capacity capable of
producing 26 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 fourth quarter of 2016. This compares to our
utilization of annual capacity capable of producing 21 million
square meters of ceramic tiles at our Hengda facility in the fourth
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 18 million
square meters of ceramic tiles at our Hengdali facility in the
fourth quarter of 2016. This compares to our utilization of
annual capacity capable of producing 72 million square meters of
ceramic tiles in the fourth 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
sector.
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 (US$ 0.5 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.
We review the level of capital expenditures throughout the year
and make adjustments subject to market conditions. Although
business conditions are subject to change, given the currently
challenging market conditions we anticipate a low level of capital
expenditures for the remainder of 2017 other than those associated
with minimal upgrades, small repairs and the maintenance of
equipment.
Business Outlook
To help mitigate the effects of the continued slowdown in
China's construction sector and
its effect on the Company's building materials sector, on
October 1, 2016, we instituted a 20%
reduction in the prices of slow moving inventory. This resulted in
a 34.8% increase in our sales volume to 9.0 million square meters
of ceramic tiles compared to sales volume of 6.7 million square
meters of ceramic tiles in the fourth quarter of 2015. The
current quarter's growth in sales volume was the first
positive comparison to the previous comparable period after four
straight quarters of period over year-ago period declines in this
key metric. However, reflective of the industry-wide retrenchment,
for the full year 2016 sales volume was 28.8 million square meters
of ceramic tiles, a decrease of 12.9% as compared to sales volume
of 33.1 million square meters for the same period of
2015.
The 20% reduction in the prices of slow moving inventory that we
instituted was primarily the cause of a 28.2% decrease in the
average selling price for all our products in the current quarter
to RMB 22.4 (US$ 3.2) per square meter of ceramic tile as
compared to RMB 31.2 (US$ 4.1) per square meter of ceramic tile in the
year-ago quarter. This follows a 10.7% decline in average selling
price in the third quarter of 2016 which was preceded by eleven
straight quarters of moderate period over year-ago period
increases in this metric. The decrease in average selling
price in the fourth quarter of 2016 was the biggest decline in
three years, which was also due to an industry-wide retrenchment at
that time. We chose to discount our slow-moving inventory as means
of addressing the difficult macroeconomic and real estate
conditions in China.
Looking ahead to 2017, we expect challenging conditions in the
short-term, but improving market conditions as the year
progresses. We believe that the real estate sector continues
to be vital to sustaining China's
economic growth as it is estimated to comprise between 15% and 20%
of China's gross domestic
product. The demand for home properties continues to be
strong in many Tier 1 and 2 cities, both for residential use and
investment purposes. Although there remains a substantial level of
unsold properties of inventories in smaller cities, housing sales
have increased in Tier 3 and 4 cities with the occasional support
of subsidies. However, this sales increase has been
significantly smaller than in larger cities. Further, additional
land is being made available for development to rebalance supply
and demand and to dampen increases in property prices in
China's major cities.
We typically receive orders from customers two months in advance
of production on a rolling basis. We enter into dealership
agreements with customers, and a sales or purchase contract each
time a customer places an order. As of December 31, 2016, our backlog was approximately
RMB 61.4 million (US$ 8.9 million), which represents approximately
the next two months of revenue as of the end of the fourth quarter.
This compares to a backlog of approximately RMB 66.8 million (US$ 10.3
million) as of December 31,
2015, a year-over-year decrease of 8.0%. Under normal
circumstances, our backlog is an indicator of revenues that might
be expected in the next quarter, though it is subject to change due
to unforeseen business conditions and events including credit
payment terms.
In order to weather the current market downturn, we are
operating as leanly as possible, keeping our inventory levels
manageable with our production of ceramic tiles occurring at the
level where we expect to sell them. Our specific niche of the
building materials sector is currently characterized as having
excessive production capacity where consolidation is occurring and
where we believe larger market participants such as the Company
will ultimately succeed. Competitive pressures over the last
two years has led to a contraction in our sector as some smaller,
less well capitalized firms who lack our advanced manufacturing
capabilities and deep product platform have exited the space.
Additional exits appear likely as government mandates to convert to
cleaner and more expensive fuel sources to lower carbon emissions
that will also pressure smaller competitors.
In the long-term, we view the growth of the real estate sector
and our building materials sector as sustainable since it is
underpinned by urbanization which is expected to lead to a more
consumption-driven economy, a key objective of government policy.
We believe that our branding and market presence will enable us to
generate improved financial results once the building materials
sector recovers. We have refocused our efforts towards cities
in China where we see active real
estate development and where property developers use our products
as part of their finished home products. We believe we have a
competitive advantage in our sector due to our comprehensive
product platform, customization capabilities, marketing expertise
and ability to implement operating efficiencies. Our goal for the
year ahead is to continue to strategically market in regions with
sound fundamentals and generate sustainable sales volume until the
current period of market volatility subsides.
Conference Call Information
We will host a conference call at 8:00 am
ET on Monday, May 15, 2017.
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 21483396. A replay of the conference call
will be available for 14 days starting from 11:00 am ET on May 15,
2017. To access the replay, dial +1 (855) 859-2056.
International callers should dial +1 (404) 537-3406. The pass code
is 21483396 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$1.00 =
RMB 6.9430 The exchange rate refers
to the historical rate as set forth in the H.10 statistical release
published by www.federalreserve.gov on December 31, 2016. Such translations should not
be construed as representations that RMB amounts could have been,
or could be, converted realized or settled into US$ at that rate on
December 31, 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, 2016 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.
NON-GAAP FINANCIAL MEASURES
This press release contains financial measures and guidance
which are considered "non-GAAP" financial measures under applicable
SEC rules and regulations. As described below, the Company's
management believes that in order to properly understand its
short-term and long-term financial trends, including period over
period comparisons of the Company's operations, investors may find
it useful to exclude the effect of certain charges or gains that
contribute to or reduce earnings but that result from transactions
or events that management believes may or may not recur with
similar materiality or impact to operations in future periods. The
Company generally uses such measures to facilitate management's
review of the operational performance of the Company. For more
detail on these measures and reconciliation of such measure to the
most comparable IFRS financial measures, please refer to page 13 of this
release.
FINANCIAL TABLES
FOLLOW
|
|
|
|
|
CHINA CERAMICS
CO., LTD. AND ITS SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION
|
|
|
|
|
|
As
of
|
As
of
|
December
31,
|
December
31,
|
2016
|
2015
|
|
|
|
|
USD'000
|
RMB'000
|
RMB'000
|
ASSETS AND
LIABILITIES
|
|
|
|
Non-current
assets
|
|
|
|
Property, plant and
equipment
|
18,802
|
130,542
|
409,855
|
Investment
property
|
978
|
6,791
|
-
|
Land use
rights
|
853
|
5,920
|
15,809
|
Deferred tax
asset
|
686
|
4,765
|
9,584
|
Long-term prepaid
expenses
|
215
|
1,494
|
-
|
|
|
|
|
|
21,534
|
149,512
|
435,248
|
|
|
|
|
Current
assets
|
|
|
|
Inventories
|
30,641
|
212,742
|
306,853
|
Trade
receivables
|
79,727
|
553,542
|
509,903
|
Other receivables and
prepayments
|
1,275
|
8,854
|
18,830
|
Income tax
refundable
|
939
|
6,521
|
-
|
Restricted
cash
|
-
|
-
|
41,672
|
Cash and bank
balances
|
16
|
110
|
514
|
|
|
|
|
|
112,598
|
781,769
|
877,772
|
|
|
|
|
Current
liabilities
|
|
|
|
Trade
payables
|
12,136
|
84,257
|
110,267
|
Accrued liabilities
and other payables
|
5,422
|
37,640
|
35,177
|
Interest-bearing bank
borrowings
|
-
|
-
|
40,076
|
Amount owed to a
related party
|
5,130
|
35,626
|
33,963
|
Income tax
payable
|
189
|
1,309
|
5,293
|
|
|
|
|
|
22,877
|
158,832
|
224,776
|
|
|
|
|
Net current
assets
|
89,721
|
622,937
|
652,996
|
|
|
|
|
Non-current
liabilities
|
|
|
|
Deferred tax
liabilities
|
-
|
-
|
1,404
|
|
|
|
|
Net
assets
|
111,255
|
772,449
|
1,086,840
|
|
|
|
|
EQUITY
|
|
|
|
Total
shareholders' equity
|
111,255
|
772,449
|
1,086,840
|
|
|
|
|
|
|
|
|
CHINA CERAMICS
CO., LTD. AND ITS SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
|
|
|
|
Three months
ended December 31,
|
|
2016
|
2015
|
|
USD'000
|
RMB'000
|
RMB'000
|
|
|
|
|
Revenue
|
28,250
|
201,924
|
208,344
|
|
|
|
|
Cost of
sales
|
(41,402)
|
(288,992)
|
(178,830)
|
|
|
|
|
Gross
profit
|
(13,152)
|
(87,068)
|
29,514
|
|
|
|
|
Other
income
|
482
|
3,477
|
109
|
Selling and
distribution expenses
|
(411)
|
(2,965)
|
(5,988)
|
Administrative
expenses
|
(4,328)
|
(29,405)
|
(6,245)
|
Finance
costs
|
99
|
651
|
(698)
|
Loss from asset
devaluation
|
(34,329)
|
(230,359)
|
(421,641)
|
Other
expenses
|
(871)
|
(5,960)
|
(1,551)
|
|
|
|
|
Profit before
taxation
|
(52,510)
|
(351,629)
|
(406,500)
|
Income tax
expense
|
(117)
|
(882)
|
(4,785)
|
|
|
|
|
Profit attributable
to shareholders
|
(52,627)
|
(352,511)
|
(411,285)
|
|
|
|
|
Earnings per
share
|
|
|
|
Basic
(USD/RMB)
|
USD(19.05)
|
RMB(127.63)
|
RMB(161.04)
|
Diluted
(USD/RMB)
|
USD(19.05)
|
RMB(127.63)
|
RMB(161.04)
|
|
|
|
|
Weighted average
number of ordinary shares outstanding used in computing earnings
per share
|
|
|
|
Basic
|
2,761,998
|
2,761,998
|
2,553,855
|
Diluted
|
2,761,998
|
2,761,998
|
2,553,855
|
|
|
|
|
|
|
|
|
CHINA CERAMICS
CO., LTD. AND ITS SUBSIDIARIES
|
|
SALES VOLUME AND
AVERAGE SELLING PRICE (UNAUDITED)
|
|
|
|
|
|
Three months ended
December 31,
|
|
|
2016
|
2015
|
|
|
|
|
Sales volume (square
meters)
|
|
8,997,998
|
6,675,031
|
Average Selling Price
(in RMB/square meter)
|
|
22.4
|
31.2
|
|
|
|
|
|
|
|
|
CHINA CERAMICS
CO., LTD. AND ITS SUBSIDIARIES
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
|
|
|
|
|
Year
ended December 31,
|
|
2016
|
2015
|
|
USD'000
|
RMB'000
|
RMB'000
|
|
|
|
|
Revenue
|
118,286
|
793,745
|
1,017,146
|
|
|
|
|
Cost of
sales
|
(122,773)
|
(823,856)
|
(891,720)
|
|
|
|
|
Gross
profit
|
(4,487)
|
(30,111)
|
125,426
|
|
|
|
|
Other
income
|
2,270
|
15,233
|
707
|
Selling and
distribution expenses
|
(1,910)
|
(12,815)
|
(14,153)
|
Administrative
expenses
|
(6,960)
|
(46,704)
|
(21,883)
|
Finance
costs
|
(13)
|
(84)
|
(4,043)
|
Loss from asset
devaluation
|
(34,329)
|
(230,359)
|
(421,641)
|
Other
expenses
|
(1,696)
|
(11,381)
|
(3,572)
|
|
|
|
|
Profit/(loss) before
taxation
|
(47,125)
|
(316,221)
|
(339,159)
|
Income tax
expense
|
(832)
|
(5,581)
|
(23,253)
|
|
|
|
|
Profit attributable
to shareholders
|
(47,957)
|
(321,802)
|
(362,412)
|
|
|
|
|
Earnings per
share
|
|
|
|
Basic
(USD/RMB)
|
USD(17.36)
|
RMB(116.51)
|
RMB(141.91)
|
Diluted
(USD/RMB)
|
USD(17.36)
|
RMB(116.51)
|
RMB(141.91)
|
|
|
|
|
Weighted average
number of ordinary shares outstanding used in computing earnings
per share
|
|
|
|
Basic
|
2,761,998
|
2,761,998
|
2,553,855
|
Diluted
|
2,761,998
|
2,761,998
|
2,553,855
|
|
|
|
|
|
|
|
|
CHINA CERAMICS
CO., LTD. AND ITS SUBSIDIARIES
|
|
SALES VOLUME AND
AVERAGE SELLING PRICE (UNAUDITED)
|
|
|
|
|
|
Year ended
December 31,
|
|
|
2016
|
2015
|
|
|
|
|
Sales volume (square
meters)
|
|
28,803,657
|
33,069,087
|
Average Selling Price
(in RMB/square meter)
|
|
27.6
|
30.8
|
|
|
|
|
|
|
|
|
CHINA CERAMICS
CO., LTD. AND ITS SUBSIDIARIES
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
For the three
months ended December 31,
|
|
2016
|
2015
|
|
USD'000
|
RMB'000
|
RMB'000
|
Cash flows from
operating activities
|
|
|
|
Profit/(loss) before
taxation
|
(52,730)
|
(351,629)
|
(406,500)
|
Adjustments
for
|
|
|
|
Amortization of land
use rights
|
14
|
92
|
167
|
Depreciation of
property, plant and equipment
|
1,661
|
11,076
|
17,009
|
Loss on disposal of
PPE
|
937
|
6,246
|
110
|
Bad debt provision of
trade receivables
|
3,590
|
23,940
|
|
Write down of
inventories
|
8,913
|
59,434
|
12,204
|
Finance
costs
|
(386)
|
(2,577)
|
1,044
|
Impairment of
non-current assets
|
34,544
|
230,359
|
421,641
|
Interest
income
|
279
|
1,861
|
(109)
|
Foreign exchange
gain
|
-
|
-
|
1,731
|
Operating cash flows
before working capital changes
|
(3,178)
|
(21,198)
|
47,297
|
(Increase)/Decrease
in inventories
|
(2,509)
|
(16,729)
|
(3,156)
|
Decrease in trade
receivables
|
16,132
|
107,579
|
90,415
|
Increase in other
receivables and prepayments
|
(537)
|
(3,583)
|
(10,463)
|
Decrease in trade
payables
|
(12,902)
|
(86,040)
|
(103,490)
|
Increase/(decrease)
in accrued liabilities, other payables and amounts owed to related
parties
|
(737)
|
(4,915)
|
(37,582)
|
Cash generated
from/(used in) operations
|
(3,731)
|
(24,886)
|
(16,979)
|
Interest
paid
|
105
|
702
|
(1,044)
|
Income tax
paid
|
(361)
|
(2,409)
|
(8,677)
|
Net cash used in
operating activities
|
(3,987)
|
(26,593)
|
(26,700)
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Acquisition of
property, plant and equipment
|
-
|
-
|
(142,206)
|
Proceed from disposal
of property, plant and equipment
|
150
|
1,000
|
-
|
Increase in
restricted cash
|
-
|
-
|
(12,800)
|
Interest
received
|
2
|
14
|
109
|
Net cash generated
from/(used in) investing activities
|
152
|
1,014
|
(154,897)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Proceed from
short-term loans
|
-
|
-
|
13,813
|
Repayment of
short-term loans
|
-
|
-
|
(59,787)
|
Net cash used in
financing activities
|
-
|
-
|
(45,974)
|
|
|
|
|
Net decrease in
cash and cash equivalents
|
(3,835)
|
(25,579)
|
(227,571)
|
Cash and cash
equivalents, beginning of period
|
3,842
|
25,623
|
226,318
|
Effect of foreign
exchange rate differences
|
9
|
65
|
1,767
|
Cash and cash
equivalents, end of period
|
16
|
110
|
514
|
|
|
|
|
|
|
|
|
CHINA CERAMICS
CO., LTD. AND ITS SUBSIDIARIES
|
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
Year ended
December 31
|
|
2016
|
2015
|
|
USD'000
|
RMB'000
|
RMB'000
|
Cash flows from
operating activities
|
|
|
|
Loss before
taxation
|
(47,420)
|
(316,221)
|
(339,159)
|
Adjustments
for
|
|
|
|
Amortization of land
use rights
|
55
|
370
|
669
|
Depreciation of
property, plant and equipment
|
6,685
|
44,581
|
67,976
|
Loss on disposal of
property, plant and equipment
|
937
|
6,246
|
109
|
Bad debt provision of
trade receivables
|
3,590
|
23,940
|
-
|
Write down of
inventories
|
11,259
|
75,078
|
7,667
|
Finance
costs
|
|
|
4,043
|
Impairment of
non-current assets
|
34,544
|
230,359
|
421,641
|
Interest
income
|
(269)
|
(1,791)
|
(707)
|
Foreign exchange
gain
|
13
|
84
|
1,376
|
Operating cash flows
before working capital changes
|
9,394
|
62,646
|
163,615
|
Decrease/(Increase)
in inventories
|
2,854
|
19,034
|
16,242
|
Decrease/(Increase)
in trade receivables
|
(10,134)
|
(67,578)
|
40,022
|
(Increase)/decrease
in other receivables and prepayments
|
1,272
|
8,481
|
(15,248)
|
(Increase)/decrease
in trade payables
|
(3,900)
|
(26,010)
|
(11,901)
|
(Increase)/decrease
in accrued liabilities, other payables and amounts owed to related
parties
|
1,146
|
7,641
|
(4,233)
|
Cash generated from
operations
|
632
|
4,214
|
188,497
|
Interest
paid
|
(13)
|
(84)
|
(4,053)
|
Income tax
paid
|
(1,922)
|
(12,816)
|
(22,462)
|
Net cash generated
from operating activities
|
(1,303)
|
(8,686)
|
161,982
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Proceed from
derivative financial instruments
|
|
|
-
|
Proceed from disposal
of property, plant and equipment
|
150
|
1,000
|
50
|
Acquisition of
property, plant and equipment
|
|
|
(164,697)
|
Increase in
restricted cash
|
6,249
|
41,672
|
(12,800)
|
Interest
received
|
269
|
1,791
|
705
|
Net cash generated
from/(used in) investing activities
|
6,668
|
44,463
|
(176,742)
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Issue of share
capital
|
927
|
6,185
|
-
|
Proceeds from
short-term loans
|
|
|
48,813
|
Repayment of
short-term loans
|
(6,010)
|
(40,076)
|
(94,816)
|
Dividend
paid
|
|
|
(1,505)
|
Net cash used in
financing activities
|
(5,083)
|
(33,891)
|
(47,508)
|
|
|
|
|
Net
increase/(decrease) in cash and cash
equivalents
|
282
|
1,886
|
(62,268)
|
Cash and cash
equivalents, beginning of period
|
77
|
514
|
61,155
|
Effect of foreign
exchange rate differences
|
(343)
|
(2,290)
|
1,627
|
Cash and cash
equivalents, end of period
|
16
|
110
|
514
|
About Non-GAAP Financial Measures
In addition to China Ceramics' condensed consolidation financial
results under International Financial Reporting Standards ("IFRS"),
the Company also provides certain non-IFRS financial measures
(referred to as the "non-GAAP financial measures") for the fourth
quarter of 2016 and full fiscal years of 2015 and 2016,
respectively, from their comparable IFRS measures. Such non-GAAP
financial measures are offered to supplement the Company's audited
financial statements, this earnings release and the accompanying
tables and include EBITDA and Adjusted EBITDA.
EBITDA is calculated as earnings before interest, tax,
depreciation and amortization (EBITDA). Adjusted EBITDA is
calculated as EBITDA less loss from asset devaluation, inventory
write-down and bad debt expense. Both are measures of the Company's
operating performance.
The Company uses these non-GAAP financial measures internally in
analyzing its financial results and believes they are useful to
investors in evaluating the Company's ongoing operational
performance. In addition, 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 financial measures on a stand-alone
basis or as a substitute for results under IFRS, or as being
comparable to results reported or forecasted by other companies,
and should refer to the unaudited reconciliation presented below.
The Company has provided a reconciliation of these non-GAAP
financial measures to the most directly comparable IFRS financial
measure below as adjusted for the periods indicated:
CHINA CERAMICS
CO., LTD.
|
Unaudited
Reconciliation of GAAP to Non-GAAP: Net Income to EBITDA
(1)
|
Three months
ended December 31, 2016 and December 31,
2015
|
(all figures in
000's)
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
RMB
|
USD
|
|
RMB
|
USD
|
|
|
|
|
|
|
Net profit
(loss)
|
(352,511)
|
(52,627)
|
|
(411,285)
|
(64,933)
|
Interest
expense
|
651
|
99
|
|
698
|
105
|
Interest
income
|
(1,861)
|
(279)
|
|
(109)
|
(17)
|
Income tax
expense
|
882
|
117
|
|
4,785
|
726
|
Depreciation and amortization expense
|
11,168
|
1,675
|
|
17,176
|
2,652
|
EBITDA
|
(341,671)
|
(51,015)
|
|
(388,735)
|
(61,467)
|
Loss from asset
devaluation (2)
|
230,359
|
34,329
|
|
421,641
|
66,492
|
Inventory write-down
(3)
|
59,434
|
8,913
|
|
-
|
-
|
Bad debt expense
(4)
|
23,940
|
3,491
|
|
-
|
-
|
Adjusted
EBITDA
|
(27,938)
|
(4,282)
|
|
32,906
|
5,025
|
|
|
|
|
|
|
(1) EBITDA is
defined as earnings before interest, taxes, depreciation and
amortization
(2)
Non-cash write-down of plant, property and
equipment
(3)
Non-cash inventory write-down
(4)
Non-cash write-off of bad
debt expense
|
CHINA CERAMICS
CO., LTD.
|
Unaudited
Reconciliation of GAAP to Non-GAAP: Net Income to EBITDA
(1)
|
Twelve months
ended December 31, 2016 and December 31,
2015
|
(all figures in
000's)
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
RMB
|
USD
|
|
RMB
|
USD
|
|
|
|
|
|
|
Net profit
(loss)
|
(321,802)
|
(47,957)
|
|
(362,412)
|
(57,152)
|
Interest
expense
|
84
|
13
|
|
4,043
|
638
|
Interest
income
|
(1,791)
|
(269)
|
|
(707)
|
(109)
|
Income tax
expense
|
5,581
|
832
|
|
23,253
|
3,667
|
Depreciation and amortization expense
|
44,951
|
6,740
|
|
68,645
|
10,597
|
EBITDA
|
(272,977)
|
(40,641)
|
|
(267,178)
|
(42,319)
|
Loss from asset
devaluation (2)
|
230,359
|
34,329
|
|
421,641
|
65,090
|
Inventory write-down
(3)
|
75,078
|
11,259
|
|
-
|
-
|
Bad debt expense
(4)
|
23,940
|
3,491
|
|
-
|
-
|
Adjusted
EBITDA
|
56,400
|
8,438
|
|
154,463
|
22,771
|
|
|
|
|
|
|
(1) EBITDA is
defined as earnings before interest, taxes, depreciation and
amortization
(2)
Non-cash write-down of plant, property and
equipment
(3)
Non-cash inventory write-down
(4)
Non-cash write-off of bad
debt expense
|
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-fourth-quarter-and-fiscal-year-end-2016-financial-results-300457246.html
SOURCE China Ceramics Co., Ltd.