JINJIANG, Fujian Province, China, April 8,
2016 /PRNewswire/ -- China Ceramics Co., Ltd. (NASDAQ
Capital Market: CCCL) ("China Ceramics" or the "Company"), a
leading Chinese manufacturer of ceramic tiles used for exterior
siding and for interior flooring and design in residential and
commercial buildings, today announced that the market for building
construction products in China is
becoming increasingly challenging and that the Company expects to
record a non-cash impairment charge of RMB
421.6 million (US$ 65.3
million) for the fourth quarter of 2015 related to
non-current assets at its Hengda and Hengdali production
facilities. The impairment of the non-current assets is
attributable to challenging market conditions in China which are expected to result in a
contraction in demand for the Company's products in fiscal
2016. As a result, the Company's fourth quarter earnings will
be negatively impacted by this non-recurring, non-cash
charge. This non-cash accounting charge will not impact the
Company's liquidity, cash flows from operations or compliance with
its debt covenants. The Company anticipates that its fourth
quarter revenue and gross profit will be generally in line with its
previously discussed outlook, with revenue in the range of
RMB 195 million to RMB 215 million
(US$ 30 million to US$ 33 million),
but with gross profit slightly higher than the indicated range of
RMB 25 million to RMB 28 million
(US$ 3.8 million to US$ 4.3
million). As of the date of this release, our backlog
was an estimated RMB 66.8 million
(US$ 10.3 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 137.0 million (US$ 22.1 million) as of December 31, 2014, a year-over-year decrease of
51.2%.
The asset impairment consists of an estimated RMB 124.8 million (US$
19.3 million) associated with property, plant and equipment,
land use rights and goodwill at the Company's Hengda facility and
an estimated RMB 296.8 million
(US$ 46.0 million) associated with
property, plant and equipment, land use rights and goodwill at its
Hengdali facility.
"We determined that the current write-down was required given
China's decelerating macroeconomic
growth and an expected reduction in demand for our building
materials products in 2016. With this non-cash adjustment,
our long-term assets will be more reflective of current market
value," commented Chief Executive Officer Jiadong Huang. "We expect that our marketing
initiatives and excellent customer relationships will enable us to
maintain market share, and that we will continue to innovate with
new products so as to remain a premier competitor in our
market."
Fourth Quarter Financial Results Conference Call
The Company will host a conference call following the
announcement of its fourth quarter and fiscal year end 2015
financial results. The Company expects that the earnings
release and conference call will occur during the week of either
April 18th or April 25th and dial-in information
will be provided approximately one week in advance of the call.
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, 2014 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.
Contact Information:
China Ceramics Co.,
Ltd.
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Precept Investor
Relations LLC
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Edmund Hen, Chief
Financial Officer
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David Rudnick,
Account Manager
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Email:
info@cceramics.com
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Email:
david.rudnick@preceptir.com
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Phone: +1
917-864-8849
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SOURCE China Ceramics Co., Ltd.