JINJIANG, Fujian Province, China, April 20,
2016 /PRNewswire/ -- China Ceramics Co., Ltd. (NASDAQ
Capital Market: CCCL) ("China Ceramics" or the "Company"), a
leading Chinese manufacturer of ceramic tiles used for exterior
siding and for interior flooring and design in residential and
commercial buildings, today announced financial results for the
fourth quarter and fiscal year ended December 31, 2015.
Fourth Quarter 2015 Summary
- Revenue was RMB 208.3 million
(US$ 31.6 million), down 13.2% from
the fourth quarter of 2014
- Gross profit was RMB 29.5 million
(US$ 4.5 million), up 1.4% from the
fourth quarter of 2014
- Plant utilization was 36% as compared to 39% in the fourth
quarter of 2014
- Asset write-down attributable to the impairment of property,
plant and equipment at the Company's Hengda and Hengdali facilities
was RMB 421.6 million (US$ 66.5 million)
- Net loss was RMB 411.3 million
(US$ 64.9 million) as compared to net
profit of RMB 4.8 million
(US$ 0.8 million) in the fourth
quarter of 2014
- Non-GAAP net profit, which excludes the non-cash treatment of
the asset write-down, was RMB 10.4
million (US$ 1.6 million)
- Loss per share was RMB 20.13
(US$ 3.11) as compared to earnings
per share of RMB 0.23 (US$ 0.04) in the fourth quarter of 2014
- Non-GAAP earnings per share, which excludes the non-cash
treatment of the asset write-down, was RMB
0.51 (US$ 0.08)
"For the fourth quarter of 2015, we experienced increasingly
challenging market conditions due to an array of macroeconomic
factors that have impacted the Chinese economy and which have
negatively impacted the real estate and building materials markets.
A contraction in customer demand resulted in a 13.2% decline in the
fourth quarter's revenue as compared to the same period in 2014. We
also incurred a substantial asset write-down which significantly
affected the fourth quarter's bottom line, but due to the non-cash
nature of this event, our adjusted EBITDA was RMB 32.9 million
or approximately US$ 5 million, up 15.4% as compared to the year-ago quarter,"
commented Mr. Jiadong Huang, Chief
Executive Officer of China Ceramics.
"We continue to differentiate ourselves from our competitors
with new products and are excited about the addition of glazed
brick ceramic tiles to our product portfolio as it is a highly
effective solution for high-rise apartment buildings and housing
projects. This new production line at our Hengdali facility is
capable of producing customized roofing tiles according to customer
specifications and following
extensive testing in the first quarter of 2016, we expect full
production to begin in the second quarter of 2016."
"During the fourth quarter, we utilized production facilities
capable of producing 26 million square meters of ceramic tiles per
year out of a total annual production capacity of 72 million square
meters. Although we have a substantial amount of capacity available
for utilization, in the near-term we do not have plans to bring
additional capacity online as we are currently experiencing a
contraction in demand for our products."
"For the full year 2015, our revenue was down 2% but our gross
profit rose by over 20% due to operating efficiencies. Our adjusted
EBITDA, which excluded the fourth quarter's non-cash asset
write-down, was RMB
154.5 million or approximately US$ 23 million. We also repaid approximately
US$ 7 million in short-term debt
during the fourth quarter due to a tightening of credit across
China."
"Looking ahead to 2016, we believe that the operating
environment will continue to be challenging. However, we are
confident that we can weather the current market volatility and
leverage our market position to maintain our existing customers as
well as win new customers. We expect a consolidation trend among
larger property developers which would 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 that will continue to draw
investment and that the urbanization and economic trends underlying
the growth in China's real estate
sectors are sustainable," concluded Mr. Huang.
Fourth Quarter 2015 Results
Revenue for the fourth quarter ended December 31, 2015 was RMB
208.3 million (US$ 31.6
million), a decrease of 13.2% from RMB 240.1 million (US$
38.7 million) for the fourth quarter ended December 31, 2014. The year-over-year decrease in
revenue was due to a 13.0% decrease in sales volume to 6.7 million
square meters of ceramic tiles in the fourth quarter of 2015 from
7.7 million square meters in the fourth quarter of 2014 slightly
offset by the 0.3% increase in average selling price in the fourth
quarter of 2015 to RMB 31.2
(US$ 4.1) as compared to RMB 31.1 for the fourth quarter of 2014.
Gross profit for the fourth quarter ended December 31, 2015 was RMB
29.5 million (US$ 4.5
million), an increase of 1.4% as compared to a gross profit
of RMB 29.1 million (US$ 4.7 million) for the fourth quarter of 2014.
The gross profit margin was 14.2% for the fourth quarter ended
December 31, 2015 as compared to a
gross profit margin of 12.1% for the fourth quarter of 2014. The
210 basis point increase in gross profit margin was primarily
driven by adjusting production and achieving better control of
labor costs.
Selling and distribution expenses for the fourth quarter
ended December 31, 2015 were
RMB 6.0 million (US$ 0.9 million), up 100.0% from RMB 3.0 million (US$ 0.5
million) in the fourth quarter of 2014. The year-over-year
increase in selling and distribution expenses was primarily due to
the RMB 3.2 million (US$ 0.5 million) increase in advertisement
expenses.
Other expenses for the fourth quarter ended December 31, 2015 was RMB
1.6 million (US$ 0.2 million),
as compared to RMB 6.0 million
(US$ 1.0 million) for the fourth
quarter of 2014. The year-over-year decrease in other expenses was
mainly due to the provision for the settlement of litigation of
RMB 5.3 million (US$ 0.9 million) in the fourth quarter of
2014.
Loss from operations before
taxation for the fourth quarter ended December 31, 2015 was RMB
406.5 million (US$ 64.2
million), as compared to a profit from operations before
taxation of RMB 10.1 million
(US$ 1.6 million) for the fourth
quarter of 2014. The year-over-year decrease in profit from
operations was attributable to the impairment of non-current assets
of RMB 421.6 million (US$ 66.5 million) in the fourth quarter of
2015. On a non-GAAP basis, profit from operations before
taxation for the current quarter was RMB
15.1 million (US$ 2.3
million), which excludes the non-cash fair value loss on the
impairment of non-current assets for the fourth quarter of 2015, as
compared to RMB 10.1 million
(US$ 1.6 million) in the fourth
quarter 2014, which reflects the deduction of expenses due to the
provision for the settlement of litigation of RMB 5.3 million (US$ 0.9
million).
Net loss for the fourth quarter
ended December 31, 2015 was
RMB 411.3 million (US$ 64.9 million), as compared to a net profit of
RMB 4.8 million (US$ 0.8 million) for the comparable period of
2014. The year-over-year decrease in net profit was attributable to
the impairment of non-current assets of RMB
421.6 million (US$ 66.5
million) in the fourth quarter of 2015. On a non-GAAP
basis, net profit was RMB 10.4
million (US$ 1.6 million) in
the current quarter, which excludes the non-cash fair value loss on
the impairment of non-current assets for the fourth quarter of
2015, as compared to RMB 4.8 million
(US$ 0.8 million) in the fourth
quarter 2014, which reflects the deduction of expenses due to the
provision for the settlement of litigation of RMB 5.3 million (US$ 0.9
million).
Loss per fully diluted share was RMB 20.13 (US$
3.11) for the fourth quarter ended December 31, 2015 as compared to RMB 0.23 (US$ 0.04)
for the fourth quarter of 2014. The year-over-year decrease in
earnings per share was attributable to the impairment of
non-current assets of RMB 421.6
million (US$ 66.5 million) in
the fourth quarter of 2015. Non-GAAP earnings per fully diluted
share for the current quarter was RMB
0.51 (US$ 0.08), which
excludes the non-cash fair value loss on the impairment of
non-current assets for the fourth quarter of 2015. Per share
calculations for the fourth quarters of 2015 and 2014 were computed
using 20.4 million shares.
EBITDA for the fourth quarter ended December 31, 2015 was negative RMB 388.7 million (US$
61.5 million). On an adjusted basis, EBITDA for the current
quarter was RMB 32.9 million
($5.0 million), which excludes the
non-cash RMB 421.6 million
(US$ 66.5 million) fair value loss on
the impairment of non-current assets for the fourth quarter of
2015. This represents an increase of 15.4% as compared to
RMB 28.5 million (US$ 4.6 million) in the fourth quarter 2014.
Full Year 2015 Results
Revenue for the year ended December 31,
2015 was RMB 1,017.1 million
(US$ 160.4 million), a decrease of
2.0% as compared to RMB 1,037.7
million (US$ 167.2 million)
for the year ended December 31, 2014.
Gross profit was RMB 125.4 million
(US$ 19.8 million), up 20.1% from
RMB 104.4 million (US$ 16.8 million) for the year ended December 31, 2014. Gross margin was 12.3%
compared to 10.1% for the full year 2014. Selling expenses were
RMB 14.2 million (US$ 2.2 million), compared to RMB 14.3 million (US$ 2.3
million) in the same period of 2014. Administrative expenses
were RMB 21.9 million (US$ 3.5 million), compared to RMB 29.5 million (US$ 4.8
million) for the same period of 2014. The realized and
unrealized fair value loss on derivative financial instruments was
nil, compared to RMB 59.5 million
(US$ 9.6 million) for the same period
of 2014. Other expenses were RMB 3.6
million (US$ 0.6 million),
compared to RMB 10.9 million
(US$ 1.8 million) in the same period
of 2014. Net loss for the year ended December 31, 2015 was RMB
362.4 million (US$ 57.2
million), compared to a net loss of RMB 30.4 million (US$ 4.9
million) for the same period of 2014. On a non-GAAP basis,
net profit for fiscal 2015 was RMB 59.2
million (US$ 9.3 million) for
the year ended December 31, 2015,
which excludes the non-cash RMB 421.6
million (US$ 66.5 million)
fair value loss on the impairment of non-current assets for the
fourth quarter ended December 31,
2015, as compared to net profit of RMB 29.2 million (US$ 4.7
million) for fiscal year 2014, which excludes the
RMB 59.5 million (US$ 9.6 million) of realized and unrealized fair
value loss on derivative financial instruments incurred in the
first quarter of 2014. Loss per fully diluted share were
RMB 17.74 (US$
2.74) for the year ended December 31,
2015 and loss per fully diluted share was RMB 1.49 (US$ 0.24)
in the same period of 2014. On a non-GAAP basis, earnings per fully
diluted share were RMB 2.90 (US
$0.46) for the year ended
December 31, 2015, which excludes the
non-cash RMB 421.6 million
(US$ 66.5 million) fair value loss on
the impairment of non-current assets for the fourth quarter, as
compared to earnings per fully diluted share of RMB 1.43 (US$ 0.23)
for fiscal year 2014, which excludes the RMB
59.5 million (US$ 9.6 million)
of realized and unrealized fair value loss on derivative financial
instruments incurred in the first quarter of 2014. Earnings/loss
per fully diluted share for the year 2015 and 2014 were computed
using 20.4 million shares.
Fiscal Year End 2015 Statements of Selected Financial
Position Items
- Cash and bank balances were RMB 0.5
million (US$ 0.08 million) as
of December 31, 2015, compared with
RMB 61.2 million (US$ 9.9 million) as of December 31, 2014. The decrease in cash and bank
balances was primarily the result of: (i) the net repayment of
RMB 46.0 million (US$ 7.1 million) in short term loans; and (ii) an
increase in the effect of foreign exchange rate of RMB 1.8 million (US$ 0.3
million).
- Short-term bank borrowings were RMB 40.1
million (US$ 6.2 million) as
of December 31, 2015, compared with
RMB 84.7 million (US$ 13.7 million) as of December 31, 2014. The decrease was primarily due
to the net repayment of short-term bank borrowings of RMB 46.0 million (US$ 7.1
million) during 2015.
- Inventory turnover was 131 days as of December 31, 2015 compared with 125 days as of
December 31, 2014.
- Trade receivables turnover, net of value added tax, was 163
days as of December 31, 2015 compared
with 156 days as of December 31,
2014. Prior to 2012, we typically offered a credit period of
90 days to our distributors but extended it to 150 days at the end
of 2012 to address funding pressures on distributors associated
with the challenging real estate market conditions in China. We extended the credit period from 90
days to 120 days to direct company accounts at the end of 2014. The
currently challenging economic environment has prompted us to offer
extended credit terms to certain customers resulting in a higher
trade receivables turnover figure than normal.
- Trade payables turnover, net of value added tax, was 70 days as
of December 31, 2015 compared with 75
days as of December 31, 2014. The
average turnover days were within the normal credit period of one
to four months granted by our suppliers.
Liquidity and Capital Resources
Cash flow used in operating activities was RMB 26.7 million (US$ 4.1
million) for the quarter ended December 31, 2015, compared to cash flow used in
operating activities of RMB 2.3
million (US$ 0.4 million) in
the same period in 2014. The year-over-year change of RMB 24.4 million (US$ 3.9
million) was mainly caused by: (i) non-GAAP profit before
taxation of RMB 15.1 million
(US$ 2.3 million) for the quarter
ended December 31, 2015, which
excludes the non-cash RMB 421.6
million (US$ 66.5 million)
fair value loss on the impairment of non-current assets incurred in
the quarter ended December 31, 2015,
compared to a profit before taxation of RMB
10.1 million (US$ 1.6 million)
for the same period last year; (ii) an increase in the write down
of inventories of RMB 12.2 million
(US$ 1.9 million) for the quarter
ended December 31, 2015, compared to
the write down of inventories of RMB 3.3
million (US$ 0.5 million) in
the same period last year; (iii) an increase in foreign exchange
loss of RMB 1.7 million (US$ 0.3 million) for the quarter ended
December 31, 2015, compared to an
increase in foreign exchange gain of RMB
0.02 million (US$ 0.003) in
the same period last year; (iv) an increase in inventories of
RMB 3.2 million (US$ 0.5 million) for the quarter ended
December 31, 2015, compared to a
decrease in inventories of RMB 27.1
million (US$ 4.4 million) in
the same period last year; (v) a decrease in trade receivables of
RMB 90.4 million (US$ 14.0 million) for the quarter ended
December 31, 2015, compared to a
decrease in trade receivables of RMB 44.5
million (US$ 7.2 million) in
the same period last year; (vi) an increase in other receivables
and prepayments of RMB 10.5 million
(US$ 1.6 million) for the quarter
ended December 31, 2015, compared to
an increase in other receivables and prepayments of RMB 0.6 million (US$ 0.1
million) in the same period last year; (vii) a decrease in
trade payables of RMB 103.5 million
(US$ 16.0 million) for the quarter
ended December 31, 2015, compared to
a decrease in trade payables of RMB 106.6
million (US$ 17.2 million) in
the same period last year; (viii) a decrease in accrued
liabilities, other payables and amounts owed to related parties of
RMB 37.6 million (US$ 5.8 million) for the quarter ended
December 31, 2015, compared to an
increase in accrued liabilities, other payables and amounts owed to
related parties of RMB 9.3 million
(US$ 1.5 million) in the same period
last year; and (ix) an increase in income tax paid of RMB 8.7 million (US$ 1.3
million) for the quarter ended December 31, 2015, compared to an increase in
income tax paid of RMB 6.6 million
(US$ 1.1 million) in the same period
last year.
Cash flow used in investing activities in the quarter
ended December 31, 2015 was
RMB 154.9 million (US$ 23.9 million), compared to cash flow
generated from investing activities of RMB
0.04 million (US$ 0.01
million) in the same period of 2014. The year-over-year
change of RMB 154.9 million
(US$ 23.9 million) was mainly caused
by: (i) an increase in the acquisition of property, plant and
equipment of RMB 142.2 million
(US$ 22.0 million) for the quarter
ended December 31, 2015, compared to
an increase in the acquisition of property, plant and equipment of
nil in the same period last year; and (ii) an increase in
restricted cash of RMB 12.8 million
(US$ 2.0 million) for the quarter
ended December 31, 2015, compared to
an increase in restricted cash of nil in the same period last
year.
Cash flow used in financing activities was RMB 46.0 million (US$ 7.1
million) in the quarter ended December 31, 2015, compared to nil for the same
period 2014. The year-over-year change of RMB 46.0 million (US$ 7.1
million) was mainly caused by: (i) a decrease in proceeds
from short-term loans of RMB 13.8
million (US$ 2.1 million) for
the quarter ended December 31, 2015,
compared to proceeds from short-term loans of RMB 22.1 million (US$ 3.6
million) in the same period last year; and (ii) an increase
in repayment of short-term loans of RMB 59.8
million (US$ 9.2 million) for
the quarter ended December 31, 2015,
compared to the repayment of short-term loans of RMB 22.1 million (US$ 3.6
million) in the same period last year.
Plant Capacity and Capital Expenditures Update
For the fourth quarter of 2015, we utilized plant capacity
capable of producing 26 million square meters of ceramic tiles
annually out of a total annual production capacity of 72 million
square meters. This represents a 7.1% decrease of plant capacity
utilization as compared to that which was utilized in the fourth
quarter of 2014 when we utilized plant capacity capable of
producing 28 million square meters of ceramic tiles annually.
For 2015, we utilized plant capacity capable of producing 33
million square meters of ceramic tiles annually out of a total
annual production capacity of 72 million square meters. This
represents a 17.9% increase of plant capacity utilization as
compared to that which was utilized in 2014 when we utilized plant
capacity capable of producing 28 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 21 million square meters of ceramic
tiles in 2015. Our Hengdali facility has an annual production
capacity of 30 million square meters and we utilized annual
capacity capable of producing 12 million square meters of ceramic
tiles in 2015. We will bring our unused production capacity online
as customer demand dictates and when there are further signs of
improvement in China's real estate
and construction sector.
In terms of our capital expenditures, in the third quarter of
2015, we began renovating the showroom in our Hengda facility (the
Hengda Exhibition Hall) that is a valuable resource for the
marketing and promotion of our extensive line of building material
products. We believe that upgrading this showroom will enable us to
continue to secure significant new contracts for our products,
especially from larger property developers. Capital expenditures
for the new renovations to the Hengda Exhibition Hall were
RMB 3.9 million (US$ 0.6 million) in the third quarter of 2015 and
RMB 6.6 million (US$ 1.0 million) in the fourth quarter of 2015,
with no unpaid balances as of December 31,
2015. The total cost of the renovations, which were
completed in the fourth quarter, was RMB
10.5 million (US$ 1.6
million).
We also constructed a new production line to manufacture glazed
brick ceramic tiles in our Hengdali facility, which we believe will
be an attractive addition to our current product portfolio. This
new product is engineered to be competitively-priced and a highly
effective roofing solution for both high rise apartment buildings
and housing projects, and it complements our existing ceramic tile
building siding products. Capital expenditures for the new line
were RMB 18.6 million (US$ 2.9 million) in the third quarter of 2015 and
RMB 130.1 million (US$ 20.1 million) in the fourth quarter of 2015,
with no unpaid balances as of December 31,
2015. The total cost of the new production line was
RMB 148.7 million (US$ 23.0 million).
Business Outlook
In the fourth quarter of 2015, the Company experienced a
substantial decline in business activity as compared to the fourth
quarter of 2014. The Company's sales volume of 6.7 million square
meters represents a 13.0% reduction in sales volume from the 7.7
million square meters recorded in the fourth quarter of 2014. This
was the lowest level of sales volume attained since the first
quarter of 2013, when a difficult business environment caused a
decline in sales volume, and pricing pressure on the Company's
products impelled us to institute price cuts in order to maintain
market share. The Company attributes the currently challenging
conditions to lower economic growth in China which has affected the real estate and
construction sectors, and which has resulted in a contraction in
investment and new housing projects by property developers. The
fourth quarter's average selling price rose 0.3% as compared to the
fourth quarter of 2014 which reflects the Company having retained
its pricing power, as the fourth quarter's increase represents
eight consecutive quarters of period over year-ago period increases
in average selling price.
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
previously disclosed, our backlog, which represents approximately
the next two months of revenue as of the end of the fourth quarter,
was RMB 66.8 million (US$ 10.3 million). This compares to a backlog of
approximately RMB 137.0 million as of
December 31, 2014, a year-over-year
decrease of 51.2%. Further, since July
2014, due to an increase in our production costs (primarily
caused by the use of relatively more expensive natural gas instead
of coal at the Hengda facility due to government regulations
intended to reduce pollution), we have increased the selling prices
of all products by an average of approximately 5% in order to
maintain our gross margin. We note that the second and third
calendar quarters have been the peak season of the property
development industry and, therefore, our quarterly sales are
usually highest from May to September compared to the rest of the
year. We have lower sales between the months of January and March
due to the effects of cold weather and the PRC Spring Festival.
Looking ahead to 2016, we expect very challenging conditions in
the short-term, but slowly improving market conditions as the year
progresses. We believe that the real estate and the construction
and building materials sectors continue 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 Chinese
government has adopted an array of policies to stimulate the real
estate sector which includes cutting benchmark interest rates five
times last year, a lowering of the reserve requirement ratio for
banks, lower first home down payment ratios and a cut in the
minimum capital ratio for fixed asset investments which would help
property developers.
In early February of 2016, the Central Bank cut the minimum
mortgage down payment for first-time buyers from 25% to 20% as a
way to increase sales in third and fourth tier cities where
inventories of unsold housing remain are at record levels. This is
the third lowering of minimum mortgage down payment over the last
year where each one has led to an increase in new home purchases.
In addition, in late February of 2016, the Central Bank cut the reserve requirement
ratio by 0.5% to 17% to encourage banks to increase their lending
activities which could help to spur real estate activity.
Although the Central Government's measures have helped to
sustain the real estate sector, there has been a substantial
slowdown in construction activity year-to-date, and it is not clear
if supportive monetary and regulatory policies will continue for
the remainder of 2016. In the long-term, we view the growth of the
real estate sector as sustainable as it is underpinned by
urbanization which is expected to lead to a more consumption-driven
economy, and which is a key objective of government policy.
We believe that we have a competitive advantage in our sector
due to our name brand, comprehensive product platform, marketing
expertise and ability to implement operating efficiencies due to
our modern plant and equipment. Competitive pressures over the last
year has led to a contraction in the building materials sector as
some smaller, less well capitalized firms who lack our advanced
manufacturing capabilities and deep product platform have left our
sector. Additional exits appear likely as government mandates to
convert to cleaner and more expensive fuel sources to lower carbon
emissions will also pressure smaller competitors.
In addition, we expect there to be a consolidation trend among
the larger property developers in 2016. This would benefit larger
ceramic producers such as China Ceramics who can most effectively
service these large enterprises. Our goal for the year ahead is to
strategically market in specific locales with sound regional
fundamentals and generate sustainable sales volume as we weather
this current period of volatility and challenging market
conditions.
Special Shareholders
Meeting
The Company will hold a Special
Shareholders Meeting at the Company's principal executive offices
on May 23, 2016, in Jinjiang, Fujian, China. At the Special
Shareholders Meeting, the Company's shareholders will be asked to
vote on a proposal to vote on a five-to-one combination of all of
the Company's outstanding ordinary shares with a par value of
$0.005, increased from $0.001. The Board of Directors will determine
whether to effect the share combination in the coming
months.
Status of the Class Action Litigation
The Company previously disclosed that it had reached an
agreement in principle to settle the outstanding class action
litigation. On February 6, 2015, the
Company and the individual defendants reached an agreement in
principle to settle the above-described cases as against all
defendants in consideration of the payment by the Company of
$850,000 in consideration, consisting
of $310,000 in US dollars and
$540,000 in the Company's common
stock. A Stipulation of Settlement and related documents were
subsequently filed with the court, and were revised on July 22, 2015. The settlement is subject to
approval by the court. On September 1,
2015, the United States District Court for the Southern
District of New York issued a
preliminary approval order that among other things preliminarily
approved the proposed settlement of the class action litigation. A
final hearing was held on January 6,
2016, but the Court has not yet issued a final order
approving the settlement.
Conference Call Information
We will host a conference call at 8:00 am
ET on Wednesday, April 20,
2016. Listeners may access the call by dialing 1 (866)
395-5819 five to ten minutes prior to the scheduled conference call
time. International callers should dial 1 (706) 643-6986. In order
to join this conference call, you will be required to provide the
Conference ID Number 90834998.
A replay of the conference call will be available for 14 days
starting from 11:00 am ET on
April 20, 2016. To access the replay,
dial 1 (855) 859-2056. International callers should dial 1 (404)
537-3406. In order to join this conference call, you will be
required to provide the Conference ID Number 90834998.
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"). 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$1.00 =
RMB 6.4778. The exchange rate refers
to the historical rate as set forth in the H.10 statistical release
published by www.federalreserve.gov on December 31, 2015. Such translations should not
be construed as representations that RMB amounts could have been,
or could be, converted realized or settled into US$ at that rate on
December 31, 2015 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, including, without
limitation, our statements relating to our macroeconomic
expectations and our ability to address them to enhance our
business prospects and shareholder value, 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 subsequently filed SEC reports and filings. Such
reports are available upon request from the Company, or from the
Securities and Exchange Commission, including through the SEC's
Internet website at http://www.sec.gov. We have no obligation and
do not undertake to update, revise or correct any of the
forward-looking statements after the date hereof, or after the
respective dates on which any such statements otherwise are
made.
FINANCIAL TABLES FOLLOW
CHINA CERAMICS
CO., LTD. AND ITS SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION
|
|
|
|
|
|
|
|
As
of
December 31,
2015
|
As
of December 31,
2014
|
|
|
USD'000
|
RMB'000
|
RMB'000
|
|
|
|
|
|
ASSETS AND
LIABILITIES
|
|
|
|
|
Non-current
assets
|
|
|
|
|
Property, plant and
equipment
|
|
63,271
|
409,855
|
718,418
|
Land use
rights
|
|
2,440
|
15,809
|
29,259
|
Goodwill
|
|
-
|
-
|
3,735
|
Deferred tax
assets
|
|
1,480
|
9,584
|
7,854
|
Long-term prepaid
expenses
|
|
-
|
-
|
1,404
|
|
|
67,191
|
435,248
|
760,670
|
|
|
|
|
|
Current
assets
|
|
|
|
|
Inventories
|
|
47,370
|
306,853
|
330,763
|
Trade
receivables
|
|
78,715
|
509,903
|
549,925
|
Other receivables and
prepayments
|
|
2,907
|
18,830
|
2,178
|
Derivative financial
instruments
|
|
-
|
-
|
-
|
Restricted
cash
|
|
6,433
|
41,672
|
28,872
|
Cash and bank
balances
|
|
79
|
514
|
61,155
|
|
|
|
|
|
|
|
135,504
|
877,772
|
972,893
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Trade
payables
|
|
17,022
|
110,267
|
122,168
|
Accrued liabilities
and other payables
|
|
5,430
|
35,177
|
49,989
|
Interest-bearing bank
borrowings
|
|
6,187
|
40,076
|
84,704
|
Amounts owed to
related parties
|
|
5,243
|
33,963
|
24,902
|
Income tax
payable
|
|
817
|
5,293
|
2,772
|
|
|
|
|
|
|
|
34,699
|
224,776
|
284,535
|
|
|
|
|
|
Net current
assets
|
|
100,805
|
652,996
|
688,358
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
Deferred tax
liabilities
|
|
217
|
1,404
|
1,404
|
|
|
|
|
|
Net
assets
|
|
167,726
|
1,086,840
|
1,447,624
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Total
shareholders' equity
|
|
167,726
|
1,086,840
|
1,447,624
|
CHINA CERAMICS
CO., LTD. AND ITS SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR
LOSS
|
|
|
|
|
|
Three months ended
December 31,
|
|
2015
|
2014
|
|
USD'000
|
RMB'000
|
RMB'000
|
|
|
|
|
Revenue
|
31,615
|
208,344
|
240,125
|
|
|
|
|
Cost of
sales
|
(27,107)
|
(178,830)
|
(211,035)
|
|
|
|
|
Gross
profit/(loss)
|
4,508
|
29,514
|
29,090
|
|
|
|
|
Other
income
|
16
|
109
|
57
|
Selling and
distribution expenses
|
(932)
|
(5,988)
|
(3,049)
|
Administrative
expenses
|
(961)
|
(6,245)
|
(8,795)
|
Finance
costs
|
(105)
|
(698)
|
(1,188)
|
Realized and
unrealized fair value gain on derivative
|
-
|
-
|
-
|
financial
instruments
|
|
|
|
Loss from asset
devaluation
|
(66,492)
|
(421,641)
|
-
|
Other
expenses
|
(241)
|
(1,551)
|
(6,049)
|
|
|
|
|
Profit/(loss) before
taxation
|
(64,207)
|
(406,500)
|
10,066
|
Income tax
(expense)/credit
|
(726)
|
(4,785)
|
(5,299)
|
|
|
|
|
Profit/(loss)
attributable to shareholders
|
(64,933)
|
(411,285)
|
4,767
|
|
|
|
|
Earnings/(loss)
per share
|
|
|
|
Basic
(USD/RMB)
|
USD (3.11)
|
RMB
(20.13)
|
RMB 0.23
|
Diluted
(USD/RMB)
|
USD (3.11)
|
RMB
(20.13)
|
RMB 0.23
|
|
|
|
|
Weighted average
number of ordinary shares outstanding
|
|
|
used in computing
earnings per share
|
|
|
|
Basic
|
20,430,838
|
20,430,838
|
20,430,838
|
Diluted
|
20,430,838
|
20,430,838
|
20,430,838
|
CHINA CERAMICS
CO., LTD. AND ITS SUBSIDIARIES
|
|
SALES VOLUME AND
AVERAGE SELLING PRICE(UNAUDITED)
|
|
|
|
|
Three
months ended December 31,
|
|
2015
|
|
2014
|
|
|
|
|
Sales volume (square
meters)
|
6,675,031
|
|
7,732,770
|
Average Selling Price
(in RMB/square meter)
|
31.2
|
|
31.1
|
|
|
|
|
|
CHINA CERAMICS
CO., LTD. AND ITS SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR
LOSS
|
|
|
|
|
|
Year ended
December 31,
|
|
2015
|
2014
|
|
USD'000
|
RMB'000
|
RMB'000
|
|
|
|
|
Revenue
|
160,403
|
1,017,146
|
1,037,651
|
|
|
|
|
Cost of
sales
|
(140,623)
|
(891,720)
|
(933,220)
|
|
|
|
|
Gross
profit
|
19,780
|
125,426
|
104,431
|
|
|
|
|
Other
income
|
111
|
707
|
429
|
Selling and
distribution expenses
|
(2,232)
|
(14,153)
|
(14,251)
|
Administrative
expenses
|
(3,451)
|
(21,883)
|
(29,529)
|
Finance
costs
|
(638)
|
(4,043)
|
(4,556)
|
Realized and
unrealized fair value loss on derivative
|
-
|
-
|
(59,477)
|
financial
instruments
|
|
|
|
Loss from asset
devaluation
|
(66,492)
|
(421,641)
|
-
|
Other
expenses
|
(563)
|
(3,572)
|
(10,937)
|
|
|
|
|
Profit/(loss) before
taxation
|
(53,485)
|
(339,159)
|
(13,890)
|
Income tax
expense
|
(3,667)
|
(23,253)
|
(16,463)
|
|
|
|
|
Profit/(loss)
attributable to shareholders
|
(57,152)
|
(362,412)
|
(30,353)
|
|
|
|
|
Loss per
share
|
|
|
|
Basic
(USD/RMB)
|
USD (2.74)
|
RMB
(17.74)
|
RMB (1.49)
|
Diluted
(USD/RMB)
|
USD (2.74)
|
RMB
(17.74)
|
RMB (1.49)
|
|
|
|
|
Weighted average
number of ordinary shares outstanding
|
|
|
used in computing
loss/earnings per share
|
|
|
|
Basic
|
20,430,838
|
20,430,838
|
20,430,838
|
Diluted
|
20,430,838
|
20,430,838
|
20,430,838
|
CHINA CERAMICS
CO., LTD. AND ITS SUBSIDIARIES
|
|
SALES VOLUME AND
AVERAGE SELLING PRICE(UNAUDITED)
|
|
|
|
|
Year ended
December 31,
|
|
2015
|
|
2014
|
|
|
|
|
Sales volume (square
meters)
|
33,069,087
|
|
35,119,762
|
Average Selling Price
(in RMB/square meter)
|
30.8
|
|
29.5
|
|
|
|
|
|
CHINA CERAMICS
CO., LTD. AND ITS SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
For the three
months ended December 31,
|
|
2015
|
2014
|
|
USD'000
|
RMB'000
|
RMB'000
|
Cash flows from
operating activities
|
|
|
|
Profit/(loss) before
taxation
|
(62,753)
|
(406,500)
|
10,066
|
Adjustments
for
|
|
|
|
Amortization of land
use rights
|
26
|
167
|
168
|
Depreciation of
property, plant and equipment
|
2,626
|
17,009
|
17,088
|
Realized gain from
derivative financial instruments
|
-
|
-
|
-
|
Fair value gain on
derivative financial instruments
|
-
|
-
|
-
|
Loss on disposal of
PPE
|
17
|
110
|
|
Write down of
inventories
|
1,884
|
12,204
|
3,309
|
Share-based
compensation
|
-
|
-
|
-
|
Finance
costs
|
161
|
1,044
|
1,188
|
Impairment of
non-current assets
|
65,090
|
421,641
|
-
|
Interest
income
|
(17)
|
(109)
|
(38)
|
Foreign exchange
gain
|
267
|
1,731
|
21
|
Operating cash flows
before working capital changes
|
7,301
|
47,297
|
31,802
|
(Increase)/Decrease
in inventories
|
(487)
|
(3,156)
|
27,137
|
Decrease in trade
receivables
|
13,958
|
90,415
|
44,468
|
Increase in other
receivables and prepayments
|
(1,615)
|
(10,463)
|
(559)
|
Decrease in trade
payables
|
(15,976)
|
(103,490)
|
(106,648)
|
Increase/(decrease)
in accrued liabilities, other payables and amounts owed to related
parties
|
(5,802)
|
(37,582)
|
9,349
|
Cash generated
from/(used in) operations
|
(2,621)
|
(16,979)
|
5,549
|
Interest
paid
|
(161)
|
(1,044)
|
(1,177)
|
Income tax
paid
|
(1,339)
|
(8,677)
|
(6,624)
|
Net cash used in
operating activities
|
(4,121)
|
(26,700)
|
(2,252)
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Acquisition of
property, plant and equipment
|
(21,953)
|
(142,206)
|
-
|
Proceed from disposal
of property, plant and equipment
|
-
|
-
|
-
|
Increase in
restricted cash
|
(1,976)
|
(12,800)
|
-
|
Interest
received
|
17
|
109
|
38
|
Net cash generated
from/(used in) investing activities
|
(23,912)
|
(154,897)
|
38
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Proceed from
short-term loans
|
2,132
|
13,813
|
22,119
|
Repayment of
short-term loans
|
(9,230)
|
(59,787)
|
(22,119)
|
Deposit to stock
transfer agent
|
-
|
-
|
-
|
Advance from related
party
|
-
|
-
|
-
|
Net cash used in
financing activities
|
(7,098)
|
(45,974)
|
-
|
|
|
|
|
Net decrease in
cash and cash equivalents
|
(35,131)
|
(227,571)
|
(2,214)
|
Cash and cash
equivalents, beginning of period
|
34,937
|
226,318
|
63,351
|
Effect of foreign
exchange rate differences
|
273
|
1,767
|
18
|
Cash and cash
equivalents, end of period
|
79
|
514
|
61,155
|
CHINA CERAMICS
CO., LTD. AND ITS SUBSIDIARIES
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
Year ended
December 31
|
|
2015
|
2014
|
|
USD'000
|
RMB'000
|
RMB'000
|
Cash flows from
operating activities
|
|
|
|
Loss before
taxation
|
(52,357)
|
(339,159)
|
(13,890)
|
Adjustments
for
|
|
|
|
Amortization of land
use rights
|
103
|
669
|
670
|
Depreciation of
property, plant and equipment
|
10,494
|
67,976
|
69,450
|
Loss on disposal of
property, plant and equipment
|
17
|
109
|
3,537
|
Realized loss from
derivative financial instruments
|
-
|
-
|
18,163
|
Fair value loss on
derivative financial instruments
|
-
|
-
|
41,314
|
Write down of
inventories
|
1,184
|
7,667
|
2,438
|
Share-based
compensation
|
-
|
-
|
150
|
Finance
costs
|
678
|
4,043
|
4,556
|
Impairment of
non-current assets
|
65,090
|
421,641
|
-
|
Interest
income
|
(109)
|
(707)
|
(429)
|
Foreign exchange
gain
|
212
|
1,376
|
591
|
Operating cash flows
before working capital changes
|
25,312
|
163,615
|
126,550
|
Decrease/(Increase)
in inventories
|
2,507
|
16,242
|
(25,765)
|
Decrease/(Increase)
in trade receivables
|
6,178
|
40,022
|
(58,937)
|
(Increase)/decrease
in other receivables and prepayments
|
(2,354)
|
(15,248)
|
112
|
(Increase)/decrease
in trade payables
|
(1,837)
|
(11,901)
|
(30,404)
|
(Increase)/decrease
in accrued liabilities, other payables and amounts owed to related
parties
|
(653)
|
(4,233)
|
28,845
|
Cash generated from
operations
|
29,153
|
188,497
|
40,401
|
Interest
paid
|
(679)
|
(4,053)
|
(4,576)
|
Income tax
paid
|
(3,468)
|
(22,462)
|
(13,108)
|
Net cash generated
from operating activities
|
25,006
|
161,982
|
22,717
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Proceed from
derivative financial instruments
|
-
|
-
|
1,390
|
Proceed from disposal
of property, plant and equipment
|
8
|
50
|
11,172
|
Acquisition of
property, plant and equipment
|
(25,425)
|
(164,697)
|
-
|
Increase in
restricted cash
|
(1,976)
|
(12,800)
|
-
|
Interest
received
|
109
|
705
|
429
|
Net cash
generated from/(used in) investing
activities
|
(27,284)
|
(176,742)
|
12,991
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
short-term loans
|
7,535
|
48,813
|
57,119
|
Repayment of
short-term loans
|
(14,637)
|
(94,816)
|
(73,064)
|
Dividend
paid
|
(232)
|
(1,505)
|
(1,505)
|
Deposit to stock
transfer agent
|
-
|
-
|
-
|
Advances from related
party
|
-
|
-
|
14,048
|
Net cash used
in financing activities
|
(7,334)
|
(47,508)
|
(3,402)
|
|
|
|
|
Net
increase/(decrease) in cash and cash equivalents
|
(9,612)
|
(62,268)
|
32,306
|
Cash and cash
equivalents, beginning of period
|
9,441
|
61,155
|
28,848
|
Effect of foreign
exchange rate differences
|
250
|
1,627
|
1
|
Cash and cash
equivalents, end of period
|
79
|
514
|
61,155
|
Non-cash
transactions:
|
|
|
|
Payments of dividends
funded by deposit to stock transfer agent
|
-
|
-
|
11,831
|
Restricted cash
funded by a related party
|
-
|
-
|
6,659
|
Loss on derivative
financial instruments funded by a related party
|
-
|
-
|
4,727
|
Transfer of
restricted cash to a related party
|
-
|
-
|
15,552
|
Release of
liabilities under the Novation Agreement
|
-
|
-
|
56,095
|
Release of
liabilities under the Offset Agreement
|
-
|
-
|
20,723
|
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 fourth quarter and fiscal
year ended December 31, 2015,
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 fourth quarter ended
December 31, 2015, and the realized
and unrealized fair value loss on derivative financial instruments
incurred in the first quarter ended March
31, 2014, from their comparable IFRS financial 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 fourth quarter ended December 31, 2015 and excludes the realized and
unrealized fair value loss on derivative financial instruments
incurred in the first quarter ended March
31, 2014. 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
December 31, 2015
|
(all figures in 000's
except EPS)
|
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
RMB
|
RMB
|
RMB
|
|
USD
|
USD
|
USD
|
|
|
|
|
|
|
|
|
Profit before
taxation
|
(406,500)
|
421,641
|
15,141
|
|
(64,207)
|
66,492
|
2,285
|
Net profit
|
(411,285)
|
421,641
|
10,356
|
|
(64,933)
|
66,492
|
1,559
|
EPS-Basic
|
(20.13)
|
|
0.51
|
|
(3.11)
|
|
0.08
|
EPS-Diluted
|
(20.13)
|
|
0.51
|
|
(3.11)
|
|
0.08
|
(1) Non-cash asset write-down of plant,
property and equipment.
CHINA CERAMICS
CO., LTD.
|
Unaudited
Reconciliation of GAAP to Non-GAAP
|
Twelve months
ended December 31, 2015
|
(all figures in 000's
except EPS)
|
|
|
|
|
|
|
|
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
RMB
|
RMB
|
RMB
|
|
USD
|
USD
|
USD
|
|
|
|
|
|
|
|
|
Profit before
taxation
|
(339,159)
|
421,641
|
82,482
|
|
(53,485)
|
66,492
|
13,007
|
Net profit
|
(362,412)
|
421,641
|
59,229
|
|
(57,152)
|
66,492
|
9,340
|
EPS-Basic
|
(17.74)
|
|
2.90
|
|
(2.74)
|
|
0.46
|
EPS-Diluted
|
(17.74)
|
|
2.90
|
|
(2.74)
|
|
0.46
|
(1) Non-cash asset write-down of plant,
property and equipment.
CHINA CERAMICS
CO., LTD.
|
Unaudited
Reconciliation of GAAP to Non-GAAP
|
Twelve months
ended December 31, 2014
|
(all figures in 000's
except EPS)
|
|
|
|
|
|
|
|
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
GAAP
|
(1)
|
Non-GAAP
|
|
RMB
|
RMB
|
RMB
|
|
USD
|
USD
|
USD
|
|
|
|
|
|
|
|
|
Profit before
taxation
|
(13,890)
|
59,477
|
45,587
|
|
(2,239)
|
9,586
|
7,347
|
Net profit
|
(30,353)
|
59,477
|
29,154
|
|
(4,892)
|
9,586
|
4,694
|
EPS-Basic
|
(1.49)
|
|
1.43
|
|
(2.74)
|
|
0.23
|
EPS-Diluted
|
(1.49)
|
|
1.43
|
|
(2.74)
|
|
0.23
|
(1) Realized and unrealized fair value loss on
derivative financial instruments as a result of certain foreign
currency transaction agreements which the Company entered into for
investment purposes during the second quarter of 2013 and the first
quarter of 2014. China Ceramics' Chief Executive Officer, and an
affiliate of the Chief Executive Officer, agreed to assume
these agreements in July 2014. As
a result, after July 31, 2014, the
Company was no longer required to fund any losses related to these
agreements, and will neither suffer any future liabilities arising
under those agreements nor realize any benefits arising under those
agreements.
The table below sets forth a reconciliation of China Ceramics'
net income to non-GAAP EBITDA for the periods indicated 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 fourth
quarter ended December 31, 2015.
CHINA CERAMICS
CO., LTD.
|
Unaudited
Reconciliation of GAAP to Non-GAAP: Net Income to EBITDA
(1)
|
Three months ended
December 30, 2015 and December 31, 2014
|
(all figures in
000's)
|
|
|
|
|
|
|
|
Three months ended
December 31,
|
|
2015
|
|
2014
|
|
RMB
|
USD
|
|
RMB
|
USD
|
|
|
|
|
|
|
Net loss
|
(411,285)
|
(64,933)
|
|
4,767
|
769
|
Net Interest
expense
|
589
|
88
|
|
1,150
|
188
|
Income tax
expense
|
4,785
|
726
|
|
5,299
|
854
|
Depreciation and
amortization expense
|
17,176
|
2,652
|
|
17,256
|
2,781
|
EBITDA
|
(388,735)
|
(61,467)
|
|
28,472
|
4,592
|
Loss from asset
devaluation (2)
|
421,641
|
66,492
|
|
-
|
-
|
Adjusted
EBITDA
|
32,906
|
5,025
|
|
28,472
|
4,592
|
|
|
|
|
|
|
(1) EBITDA is
defined as earnings before interest, taxes, depreciation and
amortization
(2) Non-cash asset write-down
of plant, property and equipment
|
CHINA CERAMICS
CO., LTD.
|
Unaudited
Reconciliation of GAAP to Non-GAAP: Net Income to EBITDA
(1)
|
Twelve months
ended December 31, 2015 and December 31, 2014
|
(all figures in
000's)
|
|
|
|
|
|
|
|
Twelve months
ended December 31,
|
|
2015
|
|
2014
|
|
RMB
|
USD
|
|
RMB
|
USD
|
|
|
|
|
|
|
Net loss
|
(362,412)
|
(57,152)
|
|
(30,353)
|
(4,892)
|
Net Interest
expense
|
3,336
|
569
|
|
4,127
|
665
|
Income tax
expense
|
23,253
|
3,667
|
|
16,463
|
2,653
|
Depreciation and
amortization expense
|
68,645
|
10,597
|
|
72,987
|
11,301
|
EBITDA
|
(267,178)
|
(42,319)
|
|
63,224
|
9,727
|
Loss from asset
devaluation (2)
|
421,641
|
65,090
|
|
-
|
-
|
Fair value loss on
derivatives (3)
|
-
|
-
|
|
59,477
|
9,586
|
Adjusted
EBITDA
|
154,463
|
22,771
|
|
122,701
|
19,313
|
|
|
|
|
|
|
(1) EBITDA is
defined as earnings before interest, taxes, depreciation and
amortization
(2) Non-cash asset write-down
of plant, property and equipment
(3)
Realized and unrealized fair value loss on derivative
financial instruments as a result of certain foreign currency
transaction agreements which the Company entered into for
investment purposes during the second quarter of 2013 and the first
quarter of 2014. China Ceramics' Chief Executive Officer, and an
affiliate of the Chief Executive Officer, agreed to assume
these agreements in July 2014. As a result, after July 31, 2014,
the Company was no longer required to fund any losses related to
these agreements, and will neither suffer any future liabilities
arising under those agreements nor realize any benefits arising
under those agreements
|
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-2015-financial-results-300254327.html
SOURCE China Ceramics Co., Ltd.