China Ceramics Initiates the Acquisition of a New Production Facility in Gaoan, China & Announces the Addition of a New Exclu...
December 18 2009 - 6:00AM
Business Wire
China Ceramics Co., Ltd. (“China Ceramics” or the “Company”)
announced today that it has initiated the acquisition of a new
production facility in Gaoan, China (the “Gaoan Facility”). As
previously disclosed in the Company’s F-4 dated November 10, 2009,
Jinjiang Hengda Ceramics, now a wholly owned subsidiary of China
Ceramics, entered into a definitive acquisition agreement for the
Gaoan Facility with a group of investors (the “Investors”) prior to
the closing of its business combination with China Ceramics on
November 20, 2009. China Ceramics paid cash of RMB 145.4 million
(approx. US$ 21.3 million) to the Investors and assumed loans of
RMB 99.0mm (approx. US$ 14.5 million) for a current total cost of
RMB 244.4 million (approx US$ 35.8 million). The loans bear
interest at an average rate of 5.31% per annum. China Ceramics
expects to directly invest approximately US$ 4 million in the Gaoan
Facility in early 2010 for a total first stage cost of
approximately US$ 40 million. The closing of the acquisition of the
Gaoan Facility is subject to the Gaoan City Administration for
Industry and Commerce transferring the registration and business
license for the Gaoan Facility from the Investors to China
Ceramics. The Company has assumed operational control of the Gaoan
facility and does not expect the Administration for Industry and
Commerce to reject the transfer. The Company expects the transfer
to occur within the next two months.
Currently the Gaoan Facility has three production lines
installed and China Ceramics anticipates adding another four
production lines in 2010 and five in 2011. The first three
production lines have been operational since early December.
Finished products are expected to ship from the factory to
distributors in early January 2010. The three new production lines
are expected to contribute an additional 11mm sq. meters of
production of exterior ceramics tiles per year. The addition of
production lines in 2010 and 2011 are expected to cost
approximately $20 million for each year. Together with the current
production capacity at the Company’s Jinjiang, China plant, the
expected production capacity in 2010 will be approx 39m sq. meters.
China Ceramics will discontinue outsourcing production to other
ceramics tile manufacturers in January 2010.
China Ceramics also announced today that the Company has signed
an agreement with a new exclusive distributor in Guangdong Province
that will begin distributing the Company’s products in 2010. Post
this announcement, China Ceramics will have a network of 32
exclusive distributors. China Ceramics continues to negotiate
distribution agreements with new exclusive distributors and large
real estate developers in order to increase the Company’s
penetration of the PRC market.
About China Ceramics Co. Ltd.
China Ceramics is a leading Chinese manufacturer of ceramic
tiles used for exterior siding and for interior flooring and design
in residential and commercial buildings. China Ceramics produces
five different types of ceramics tiles, sold under the “HD” or
“Hengda” brand. The company’s products are available in over two
thousand styles, colors and size combinations and are distributed
through a network of exclusive distributors and directly to large
property developers. China Ceramics securities are quoted on the
NYS Amex Equities under the symbols “HOL”, “HOL.WS” and
“HOL.U”.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995. Words such as
“expect,” “estimate,” “project,” “budget,” “forecast,”
“anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,”
“believes,” “predicts,” “potential,” “continue,” and similar
expressions are intended to identify such forward-looking
statements. Forward-looking statements in this press release
include matters that involve known and unknown risks, uncertainties
and other factors that may cause actual results, levels of
activity, performance or achievements to differ materially from
results expressed or implied by this press release. Such risk
factors include, among others: future operating or financial
results; future growth expectations; the impact of inflation
generally as well as on the rising costs of materials; specific
economic conditions in China generally or in the markets in which
China Ceramics operates; changes in laws and regulations; potential
liability from future litigation; the diversion of management time
on acquisition and integration related issues; modifications or
adjustments to the financial statements of China Ceramics as a
result of applicable securities laws; and general economic
conditions such as inflation or recession. Actual results may
differ materially from those contained in the forward-looking
statements in this communication and documents filed with the SEC.
China Ceramics undertakes no obligation and does not intend to
update these forward-looking statements to reflect events or
circumstances occurring after the date of this communication. You
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this communication.
All forward-looking statements are qualified in their entirety by
this cautionary statement.
China Hldgs Acq Uts (AMEX:HOL.U)
Historical Stock Chart
From Sep 2024 to Oct 2024
China Hldgs Acq Uts (AMEX:HOL.U)
Historical Stock Chart
From Oct 2023 to Oct 2024