China Ceramics Co., Ltd. (NASDAQ:CCCL)

JINJIANG, China, Sept. 25, 2019 /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 its financial results for the six months ended June 30, 2019.

First Half 2019 Summary

• Revenue was RMB 177.4 million (US$ 26.2 million) for the six months ended June 30, 2019, as compared to RMB 355.6 million (US$ 55.9 million) for the same period of 2018.
• Gross profit was RMB 15.3 million (US$ 2.3 million) for the six months ended June 30, 2019, as compared to a gross profit of RMB 44.8 million (US$ 7.0 million) for the same period of 2018.
• Operating results were affected by bad debt expense of RMB 193.9 million (US$ 28.6 million) for the six months ended June 30, 2019, as compared to bad debt expense of RMB 106.4 million (US$ 16.7 million) for the same period of 2018.
• Net loss was RMB 193.1 million (US$ 28.5 million) for the six months ended June 30, 2019, as compared to a net loss of RMB 71.9 million (US$ 11.3 million) for the same period of 2018.
• Loss per share both on a basic and fully diluted basis were RMB 32.23 (US$ 4.75) for the six months ended June 30, 2019, as compared to loss per share on a basic and fully diluted basis of RMB 17.23 (US$ 2.71) for the six months ended June 30, 2018.

"For the first half of 2019, we continued to experience difficult market conditions as occurred during the second half of 2018. Our revenue fell by one-half as a result of a corresponding decrease in sales volume, while our ability to implement price changes to increase our sales volume diminished due to the currently challenging market environment," said Meishuang Huang, Chief Executive Officer of China Ceramics.

"During the six months ended June 30, 2019, we utilized production facilities capable of producing 6 million square meters of ceramic tiles per year out of the Company's effective total annual production capacity of 56.5 million square meters of ceramic tiles. Consistent with our practices in past quarters, we maintained a reduced utilization of existing plant capacity based on the current market environment to keep our operating costs low. We intend to bring additional capacity online as the business environment improves."

"For the second half of 2019, we believe that market conditions will continue to be challenging due to the slowdown of China's economy and possible government regulations intended to rein in real estate speculation. However, we believe that our building materials sector will continue to benefit from urbanization and real estate property development which are both vital to China's continued growth. Our strategic plan is to focus on targeted cities in China as well as to grow our new products portfolio by bolstering our research and development efforts in order to expand our market. As announced, we intend to enter new markets in Southeast Asia where we believe that the marketing of our existing products and our new ceramic tiles that cool building interiors will be successful," concluded Ms. Huang.

JINJIANG, China, Aug. 8, 2019 /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 it has developed a new type of exterior ceramic tile designed to cool indoor temperatures of buildings. The Company intends for this new product, when fully tested and receives its certification, to target the Southeast Asia market due to the region's generally hot and wet climate. The new cooling ceramic tile series is designed as a stone pattern with a look of natural décor and luxury with richer patterns than organic stone materials.

"We believe that the new cooling ceramic tiles are an important milestone as it serves as a means to save on air conditioning energy costs in a sustainable way," said Ms. Meishuang Huang, Chief Executive Officer of China Ceramics. "China Ceramics continues to be a leader in new product development which is a vital component of the company's strategy as it strengthens the company's core business which can to lead to increased market share."

The Company anticipates utilizing existing production lines in its Hengdali facility to manufacture the new ceramic tiles. The Company's design and engineering of this product is in compliance with the Company's current production processes. The new ceramic tiles are designed to allow air to pass through its surface. The Company believes that this makes this product a well-suited material for designing evaporative cooling systems and an energy efficient building materials solution for both high rise apartment buildings and general housing. Production of the new ceramic tiles is expected to begin in the first half of 2020, with marketing and sales is planned to commence thereafter.

JINJIANG, China, April 30, 2019 /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 its financial results for the second half and fiscal year ended December 31, 2018.

Operating results were affected by the following significant items:

• Sales in the second half of 2018 sharply decreased due to an unexpected slowdown in China's real estate sector. In an effort to bolster sales, in July of 2018, we decreased the pricing of our ceramic tile products by an average of 10%. This follows a price increase of 5% that we instituted in April of 2018 following three price raises beginning in April of 2017.
• Provision for inventory impairment was RMB 56.0 million (US$ 8.2 million) for the six months ended December 31, 2018, as compared to a reversal of inventory impairment of RMB 2.7 million (US$ 0.4 million) for the same period of 2017.
• Asset write-down attributable to the impairment of fixed assets and land use rights was RMB 85.0 million (US$ 12.9 million) for the six months ended December 31, 2018, as compared to RMB 36.7 million (US$ 5.5 million) for the same period of 2017.
• Provision for bad debt was RMB 210.1 million (US$ 30.6 million) for the six months ended December 31, 2018, as compared to RMB 71.6 million (US$ 10.8 million) for the same period of 2017. Provision for bad debt was RMB 316.4 million (US$ 47.9 million) for the twelve months ended December 31, 2018, as compared to RMB 71.6 million (US$ 10.8 million) for the same period of 2017.

Second Half 2018 Summary

• Revenue was RMB 142.6 million (US$ 20.8 million) for the six months ended December 31, 2018, as compared to RMB 485.3 million (US$ 73.2 million) for the same period of 2017.
• Gross loss was RMB 46.0 million (US$ 6.7 million) for the six months ended December 31, 2018, as compared to a gross profit of RMB 57.8 million (US$ 8.7 million) for the same period of 2017.
• Net loss was RMB 346.8 million (US$ 50.6 million) for the six months ended December 31, 2018, as compared to a net loss of RMB 82.2 million (US$ 12.4 million) for the same period of 2017.
• Loss per share on a basic and fully diluted basis were RMB 75.95 (US$ 11.07) for the six months ended December 31, 2018, as compared to loss per share on a basic and fully diluted basis of RMB 24.29 (US$ 3.66) for the six months ended December 31, 2017.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was RMB 10.2 million (US$ 1.5 million) for the six months ended December 31, 2018, adjusted for the write-off of fixed assets and land use rights, the inventory impairment provision, and bad debt expense, as compared to RMB 51.6 million (US$ 7.8 million), adjusted for the write-off of fixed assets, slow-moving inventory, and bad debt expense for the same period of 2017.

Fiscal Year 2018 Summary

• Revenue was RMB 498.2 million (US$ 75.4 million), as compared to RMB 821.8 million (US$ 121.7 million) for fiscal year 2017.
• Gross loss was RMB 1.2 million (US$ 0.2 million), as compared to a gross profit of RMB 50.4 million (US$ 7.5 million) for fiscal year 2017.
• Net loss was RMB 418.7 million (US$ 63.3 million), as compared to a net loss of RMB 88.0 million (US$ 13.0 million) for fiscal year 2017.
• Loss per share on a basic and fully diluted basis were RMB 93.18 (US$ 14.10), as compared to basic and fully diluted earnings per share of RMB 26.36 (US$ 3.90) for fiscal year 2017.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was RMB 50.5 million (US$ 7.6 million), adjusted for the write-off of fixed assets and land use rights, the inventory impairment provision, and bad debt expense, as compared to RMB 42.9 million (US$ 6.4 million), adjusted for the write-off of fixed assets, slow-moving inventory, and bad debt expense for fiscal year 2017.

"During the second half of 2018, we experienced difficult market conditions as compared to the same period of 2017. Our revenue decreased 71% for the second half of 2018 due to a 72% decrease in our sales volume. However, after adjusting for asset write-offs, our cash flow was modestly positive for the second half of the year despite the market slowdown, and our cash flow was reasonably strong for the full year of 2018," said Mr. Jiadong Huang, Chief Executive Officer of China Ceramics.

"For the fiscal year 2018, we utilized production facilities capable of producing 16.9 million square meters of ceramic tiles per year out of the Company's effective total annual production capacity of 56.5 million square meters of ceramic tiles. Consistent with our practices in past quarters, we maintained a reduced utilization of existing plant capacity based on the current market environment to keep our operating costs low. We intend to bring additional capacity online as the business environment improves."

"For the remainder 2019, we believe that market conditions will continue to be challenging due to government regulations to stabilize real estate prices and contain real estate development.  However, urban renewal projects and an improvement in new home prices last month fueled by China's smaller tier cities could represent a potential turnaround in business conditions.  In the long-term, we believe our building materials sector will continue to benefit from growth in the real estate sector due to continued urbanization and its importance to China's domestic growth. We plan to capitalize on emerging trends in the sector such as affordable housing initiatives and the Government's promotion of rental properties that could spur future growth," concluded Mr. Huang.

Six Month Results Ended December 31, 2018

Revenue for the six months ended December 31, 2018 was RMB 142.6 million (US$ 20.8 million), as compared to RMB 485.3 million (US$ 72.7 million) for the same period of 2017. The 70.6% year-over-year decrease in revenue was due to the 72.0% decrease in our sales volume for the six months ended December 31, 2018 compared to the same period of 2017. 

Gross loss for the six months ended December 31, 2018 was RMB 46.0 million (US$ 6.7 million), as compared to gross profit of RMB 57.8 million (US$ 8.7 million) for the same period of 2017. The gross loss margin was 32.3% as compared to an 11.9% gross profit margin for the same period of 2017. The gross loss margin for the six months ending December 31, 2018 was due to (i) a 72.1% period-to-period decrease in sales volume, and (ii) an increase in the provision for inventory impairment, which was RMB 56.0 million(US$ 8.2 million) for the six months ended December 31, 2018, as compared to a reversal of inventory impairment of RMB 2.7 million (US$ 0.4 million) for the same period of 2017.

Other income for the six months ended December 31, 2018 was RMB 7.5 million ($1.1 million), as compared to RMB 7.3 million ($1.1 million) for the same period of 2017. Other income is primarily comprised of rental income that the Company received by leasing out one of its production lines from its Hengdali facility pursuant to an eight-year lease contract.

Selling expenses for the six months ended December 31, 2018 were RMB 5.3 million(US$ 0.8 million), as compared to RMB 6.1 million (US$ 0.9 million) for the same period of 2017. The decrease in selling expenses was mainly due to lower sales during the current period.

Administrative expenses for the six months ended December 31, 2018 were RMB 7.5 million (US$ 1.1 million), as compared to RMB 8.2 million (US$ 0.7 million) for the same period of fiscal 2017. The decrease in administrative expenses was primarily due to an RMB 0.5 million decrease in office expenses and an RMB 0.2 million decrease in travel expenses.

Bad debt expense for the six months ended December 31, 2018 was RMB 210.1 million(US$ 30.6 million), as compared to RMB 71.6 million (US$ 10.8 million) for the same period of 2017, with the increase due to the write-off of bad debt due to a rise in uncollectible debt associated with our customers. We recognized a loss allowance for an expected credit loss on financial assets, primarily on our trade receivables, which are subject to impairment under International Financial Reporting Standards (IFRS). We believe that we have undertaken appropriate measures to resolve the bad debt expense. We will continue to review each of our customers for credit quality as well as assiduously test our accounts receivables balances in each upcoming fiscal period.

Loss from asset devaluation resulting from an impairment of non-current assets (fixed assets and land use rights) for the six months ended December 31, 2018 was RMB 85.0 million (US$ 12.9 million) as compared to RMB 36.7 million (US$ 5.5 million) for the same period of 2017. The loss from asset devaluation resulted from an impairment of non-current assets due to decelerating growth in China and an expected contraction in the demand for the Company's products.

Other expenses for the six months ended December 31, 2018 were RMB $0.2 million(US$ 0.03 million), as compared to RMB 3.6 million (US$ 0.5 million) for the same period of 2017.  The reduction in other expenses is attributable to a decreased loss on the disposal of fixed assets.

Net loss for the six months ended December 31, 2018 was RMB 346.8 million (US$ 50.6 million), as compared to a net loss of RMB 82.2 million (US$ 12.4 million) for the same period of 2017. The increase in net loss was mainly due to lower sales volume, an increase in the inventory impairment provision, an increase in bad debt expense, and an increase in the loss from asset devaluation for the six months ended December 31, 2018as compared to the same period of 2017.

Loss per basic share and fully diluted share for the six months ended December 31, 2018 were RMB 75.95 (US$ 11.07), as compared to loss per basic and fully diluted share of RMB 24.29 (US$ 3.66) for the same period of 2017.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was RMB 10.2 million (US$ 1.5 million) for the six months ended December 31, 2018, adjusted for the write-off of fixed assets and land use rights, the inventory impairment provision, and bad debt expense, as compared to RMB 51.6 million (US$ 7.8 million), adjusted for the write-off of fixed assets, slow-moving inventory and bad debt expense for the same period of 2017.

Full Year 2018 Financial Results

Revenue for the year ended December 31, 2018 was RMB 498.2 million (US$ 75.4 million), as compared to RMB 821.8 million (US$ 121.7 million) for the year ended December 31, 2017. Gross loss was RMB 1.2 million (US$ 0.2 million), as compared to gross profit of RMB 50.4 million (US$ 7.5 million) for the same period of 2017. The gross loss margin was 0.2%, as compared to a 6.1% gross profit margin for the same period of 2017. Other income was RMB 14.6 million (US$ 2.2 million), as compared to RMB 14.3 million (US$ 2.1 million) for the same period of 2017. Selling expenses were RMB 11.0 million (US$ 1.7 million), as compared to RMB 12.0 million (US$ 1.8 million) for the same period of 2017. Administrative expenses were RMB 18.0 million (US$ 2.7 million), as compared to RMB 17.2 million (US$ 2.6 million) for the same period of 2017. Bad debt expense was RMB 316.4 million (US$ 47.9 million), as compared to RMB 71.6 million($10.6 million) for the same period of 2017. Loss from asset devaluation resulting from an impairment of non-current assets was RMB 85.0 million (US$ 12.9 million), as compared to RMB 36.7 million (US$ 5.4 million) for the same period of 2017. Other expenses were RMB 1.5 million (US$ 0.2 million), as compared to RMB 5.2 million (US$ 0.8 million) in the same period of 2017. Net loss for the twelve months ended December 31, 2018 was RMB 418.7 million (US$ 63.4 million), as compared to a net loss of RMB 88.0 million(US$ 13.0 million) for the same period of 2017. Loss per share on a basic and fully diluted basis were RMB 93.18 (US$ 14.10) for the year ended December 31, 2018, as compared to basic and fully diluted earnings per share of RMB 26.36 (US$ 3.90), for the same period of 2017. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was RMB 50.5 million (US$ 7.6 million), adjusted for the write-off of fixed assets and land use rights, the inventory impairment provision, and bad debt expense, as compared to RMB 42.9 million (US$ 6.4 million), adjusted for the write-off of fixed assets, slow-moving inventory, and bad debt expense, for the same period of 2017.

Statements of Selected Financial Position Items for Fiscal Year End 2018

• Cash and bank balances were RMB 9.0 million (US$ 1.3 million) as of December 31, 2018, compared with RMB 2.3 million (US$ 0.4 million) as of December 31, 2017.
• Inventory turnover was 117 days as of December 31, 2018, as compared to 95 days as of December 31, 2017. We recorded an inventory impairment provision of RMB 56.0 million (US$ 8.2 million) in 2018 and a reversal of an inventory impairment provision of RMB 2.7 million (US$ 0.4 million) in 2017. Subsequent to the inventory impairment for fiscal year 2018, we believe that the value of our current inventories is realizable.
• Trade receivables turnover, net of value added tax, was 233 days as of December 31, 2018, as compared with 206 days as of December 31, 2017. This high trade receivables turnover days was primarily due to a continued 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. 
• Trade payables turnover, net of value added tax, was 26 days as of December 31, 2018 as compared with 43 days as of December 31, 2017. 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 used in operating activities was RMB 2.4 million (US$ 0.3 million) for the second six months ended December 31, 2018, as compared to cash used in operating activities of RMB 3.6 million (US$ 0.5 million) in the same period of 2017. The decrease in cash outflow was mainly due to increased cash inflow from trade receivables.

Cash flow used in investing activities was RMB 1.7 million (US$ 0.3 million) for the second six months ended December 31, 2018, as compared to cash flow used in investing activities of RMB 0.06 million (US$ 0.01 million) in the same period of 2017. The increase in cash outflow was due to the increase in restricted cash of RMB 1.7 million.

Cash flow generated from financing activities was RMB 7.5 million (US$ 1.1 million) for the second six months ended December 31, 2018, as compared to cash flow generated from financing activities of RMB 5.6 million (US$ 0.8 million) in the same period of 2017. Both events were the result of the issuance of common shares.

Plant Capacity and Capital Expenditures Update

We utilized plant capacity capable of producing 4.7 million square meters of ceramic tiles for the six months ended December 31, 2018 and 16.9 million square meters of ceramic tiles for fiscal 2018 out of a total annual production capacity of 56.5 million square meters. Our annual production capacity has been reduced from 66 million square meters of ceramic tiles as of December 31, 2017 to 56.5 million square meters of ceramic tiles due to our having retired two old furnaces at the Hengda facility in July of 2018.

Our Hengda facility has an annual production capacity of 27.7 million square meters of ceramic tiles as a result of two old furnaces having been put out of use at the facility. The Company utilized production capacity at our Hengda facility capable of producing 2.3 million square meters of ceramic tiles for the six months ended December 31, 2018 and 9.8 million square meters of ceramic tiles for fiscal 2018.

Our Hengdali facility has an annual production capacity of 28.8 million square meters (which excludes our leasing out 10 million square meters of production capacity to a third party) and we utilized production capacity at our Hengdali facility capable of producing 2.4 million square meters of ceramic tiles for the six months ended December 31, 2018and 7.1 million square meters of ceramic tiles for fiscal 2018.  

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 sectors.

Business Outlook

Sales in the second half of 2018 sharply decreased due to an unexpected slowdown in China's real estate sector. In an effort to bolster sales, in July of 2018, we decreased the pricing of our ceramic tile products by an average of 10%. This follows a pricing increase of 5% that we instituted in April of 2018 following three price raises beginning in April of 2017. However, the 10% price decrease in July 2018 did not offset the fall in our sales volume due to deteriorating market conditions that persisted through the second half of 2018, and we do not believe that further price decreases would have had a beneficial effect upon sales volume. To address the current market environment, we plan upon expanding our sales force to procure new customers, increasing our market to large property developers in targeted cities, and bolstering our research and development efforts to develop new products in order to expand our market.

Looking ahead to the remainder of 2019, and based on the information currently available to us, we expect market conditions to continue to be challenging due to a slowing domestic economy and government regulations intended to stabilize real estate prices and slow real estate development. For example, the central government has imposed lending curbs, higher mortgage rates and down payments, a price cap on new developments and restrictions on the number of homes each family can buy. This has led to some restraint on the part of property developers to develop new residential housing due to continued uncertainty, resulting in a slowing construction sector.

We believe that China's property market is resilient long-term, and that despite specific austerity measures in certain cities, there is substantial potential for property development in many regions. New home prices in China showed a recent monthly uptick reversing four months of decreases which was fueled by China's smaller third and fourth tier cities, a sector in which the Company is particularly focused. In addition, more than 20 cities have relaxed their price-curbing regulations since the beginning of the year, lowering the threshold to qualify for mortgage loans.

In our view, real estate continues to be of vital importance for China's economy as it accounts for approximately 25% of GDP.  Further, China's urbanization trend, where there has been a great movement of population from rural areas into China's cities, will continue into the foreseeable future which, in our view, points to a sustainable building materials sector over the long-term. Also, Chinese households invest two-thirds of their assets on average in real estate since alternative investments, such as the domestic stock markets, are deemed too risky while real estate offers steady, long-term growth.

We typically receive orders from customers one or two months in advance of production on a rolling basis. However, due to the potential for continued difficult market conditions in 2019, there has been a decreased demand for our products, and as of December 31, 2018, we did not have any backlog. The Company believes that the reduction in backlog has to do with a general slowdown in the construction industry in China as customers are continuing to defer orders and/or are waiting to start new projects.

Our building materials sector is continuing to work through excessive production capacity while government mandates to convert to cleaner and more expensive fuel sources could result in smaller, less well capitalized competitors exiting the space. We believe that we have a competitive advantage in our sector due to our brand name recognition, extensive product platform, marketing expertise and modernized operating efficiencies.

This business outlook reflects the Company's current and preliminary views, which are subject to change and is subject to risks and uncertainties, as well as risks and uncertainties identified in the Company's public filings.

JINJIANG, China, Nov. 30, 2018 /PRNewswire/ -- China Ceramics Co., Ltd. (NASDAQ Global Market: CCCL) ("China Ceramics" or the "Company"), a leading Chinese manufacturer of ceramic tiles used for exterior siding and for interior flooring and design in residential and commercial buildings, today announced the pricing of a "best efforts" public offering of the Company's common shares and warrants with expected total gross proceeds of $1.27 million. The offering is expected to close on or about December 4, 2018, subject to satisfaction of customary closing conditions.

The offering was priced at $1.27 per common share, with each common share coupled with one five-year warrant to purchase 0.5 common share, at an exercise price of $1.27 per share.

China Ceramics plans to use the net proceeds from the offering to fund inventory, distribution expenses, vendor obligations outside of the PRC, as well as for general corporate and working capital purposes.

Dawson James Securities, Inc. acted as the sole placement agent in connection with the offering.

This offering is being made pursuant to an effective "shelf" registration statement on Form F-3 (File No. 333-228182) that was previously filed with the Securities and Exchange Commission ("SEC") and declared effective by the SEC on November 19, 2018. The offering will be made only by means of a prospectus supplement and accompanying prospectus. A final prospectus supplement and accompanying prospectus related to the offering will be filed with the SEC and will be available on the SEC's website located at http://www.sec.gov. Copies of the prospectus supplement and the accompanying prospectus relating to this offering may be obtained by contacting Dawson James Securities, Inc., Attention: Prospectus Department, 1 North Federal Highway, 5th Floor, Boca Raton, FL 33432, mmaclaren@dawsonjames.com or toll free at 866.928.0928.

JINJIANG, China, Nov. 29, 2018 /PRNewswire/ -- China Ceramics Co., Ltd. (NASDAQ Global Market: CCCL) ("China Ceramics" or the "Company"), a leading Chinese manufacturer of ceramic tiles used for exterior siding and for interior flooring and design in residential and commercial buildings, today announced a proposed registered public offering of its common stock and warrants. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

Dawson James Securities, Inc. is acting as the sole placement agent in connection with the offering.

If completed, China Ceramics plans to use the net proceeds from the offering to fund inventory, distribution expenses, vendor obligations outside of the PRC, as well as for general corporate and working capital purposes.

This offering is being made pursuant to an effective "shelf" registration statement on Form F-3 (File No. 333-228182) that was previously filed with the Securities and Exchange Commission ("SEC") and declared effective by the SEC on November 19, 2018. The offering will be made only by means of a prospectus supplement and accompanying prospectus. The preliminary prospectus supplement and accompanying prospectus related to the offering has been filed with the SEC and is available on the SEC's website located at http://www.sec.gov . Copies of the prospectus supplement and the accompanying prospectus relating to this offering may be obtained by contacting Dawson James Securities, Inc., Attention: Prospectus Department, 1 North Federal Highway, 5th Floor, Boca Raton, FL 33432, mmaclaren@dawsonjames.com  or toll free at 866.928.0928.

 JINJIANG, China, Sept. 27, 2018 /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 six months ended June 30, 2018.

First Half 2018 Summary

Revenue was RMB 355.6 million (US$ 55.9 million) for the six months ended June 30, 2018, as compared to RMB 336.5 million for the same period of 2017
Gross profit was RMB 44.8 million (US$ 7.0 million) for the six months ended June 30, 2018, as compared to gross loss of RMB 7.4 million for the same period of 2017
Operating results were affected by bad debt expense of RMB 106.4 million (US$ 16.7 million) for the six months ended June 30, 2018, as compared to bad debt expense of nil for the same period of 2017
Net loss was RMB 71.9 million (US$ 11.3 million) for the six months ended June 30, 2018, as compared to net loss of RMB 5.8 million for the same period of 2017
Loss per share on both a basic and fully diluted basis were RMB 17.23 (US$ 2.71) for the six months ended June 30, 2018, as compared to both basic and fully diluted loss per share of RMB 2.07 for the same period of 2017
"For the first half of 2018, we experienced top line growth of 6% as stronger market positioning enabled us to increase our average selling price by 17% compared to the same period a year ago.  However, we also experienced a 9% contraction in our sales volume as compared with the first six months of last year due to the strategic decision to be more selective as to our customer base," said Mr. Jiadong Huang, CEO of China Ceramics.  "We were able to implement three price increases over the last 18 months due to our reputation for high quality products as well as a modest improvement in operating conditions. This pricing increase enabled us to achieve a reasonable utilization of our production capacity given the current market environment."

"During the six months ended June 30, 2018, we utilized production facilities capable of producing 21 million square meters of ceramic tiles for the first half of 2018 out of the Company's effective annual production capacity of 61.5 million square meters.  In order to generate cash flow, we have entered into a contract to lease out an idle production line in our Hengdali facility that has the capacity to produce 10 million square meters of ceramic tiles.  As we have in past quarters, we maintained a reduced utilization of existing plant capacity based on the current market environment in order to keep our operating costs low, and we will bring additional capacity online as the business environment improves."

"For the second half of 2018, we intend to continue to strategically target second tier cities where we forecast development activity and will be careful about extending credit to customers consistent with a general tightening of customer credit in our sector. Further, various pollution regulations applicable to our sector could cause the exit of smaller, less well capitalized competitors which we believe will give us the opportunity to ultimately increase our market share. Although we anticipate that our business will slow in the second half of 2018, we believe that our business is sustainable since real estate development is vital for China's continued urbanization, which is a key element of government policy to achieve domestic economic growth," concluded Mr. Huang.

JINJIANG, China, July 19, 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 the closing of a $861,000 private placement of its ordinary shares with certain accredited investors at the price of $1.36 per ordinary share, the closing price of the Company's securities on July 17, 2017. The Company has agreed to register the ordinary shares sold in the private offering for resale no later than 270 days after the closing of the offering. The net proceeds of this offering will be used for working capital and general corporate purposes.

The securities sold in the private offering have not been registered under the Securities Act of 1933, as amended, or state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (SEC) or an applicable exemption from such registration requirements

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful.

Fourth Quarter 2016 Financial Results

• 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.
• 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.

"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.

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.

Third Quarter 2016 Financial Results

• Revenue was RMB 251.2 million (US$ 38.1 million) as compared to RMB 339.0 million in the third quarter of 2015.
• Earnings per share on a basic and fully diluted basis were RMB 0.44 (US$ 0.06) and RMB 0.42 (US$ 0.06), respectively, as compared to basic and fully diluted earnings per share of RMB 10.52 in the third quarter of 2015.

"We experienced continued sluggish market conditions in the third quarter of 2016 due to the slowing real estate and construction sectors across China. We saw our sales volume decline by 25% for the first nine months of the year as compared to the year-ago period due to a continued contraction in customer demand. However, we were still able to generate a reasonable level of positive cash flow in the current quarter," said Mr. Jiadong Huang, CEO of China Ceramics.

"In order to move inventory, beginning on July 1, we instituted a 10% reduction in the prices of slow moving products which we hope will turn some of this inventory into cash. We are also looking for ways to operate more efficiently and are working with our distributors and suppliers to maintain stability in this challenging market environment."

"During the third quarter, we utilized production facilities capable of producing 38 million square meters of ceramic tiles per year out of the Company's usable 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 in order to keep our operating costs low, and we will bring additional capacity online as the business environment improves."

"For the remainder of 2016 and into the first half of 2017, we anticipate continued challenging market conditions due to there being excess real estate for sale in many of China's cities and an overabundance of building materials inventories. In the long-term, we believe that the current retrenchment will moderate and reach an inflection point and we will return to a more moderate growth environment as real estate development and construction continue to be important components to China's economy. We are well positioned to capitalize on opportunities in our sector relative to our competition and believe that we can be adaptive so as to optimize our success during these challenging times," concluded Chairman and Chief Executive Officer Jiadong Huang.

Business Outlook

In the third quarter of 2016, we experienced a contraction in our sales volume compared to the third quarter of 2015 due to the effects of a continued slowdown in China's construction sector. In the third quarter of 2016, the Company's sales volume was 9.1 million square meters of ceramic tiles, a decrease 17.3% as compared to sales volume of 11.0 million square meters of ceramic tiles in the year-ago quarter. For the first nine months of 2016, sales volume was 19.8 million square meters of ceramic tiles, a decrease of 25.0% as compared to sales volume of 26.4 million square meters for the first nine months of 2015. The current quarter's period over year-ago period decline in sales volume was the fourth in a row, and it was the sixth quarter out of the last seven quarters of period over year-ago period declines.

In addition, the challenging market environment has caused us to institute a 10% reduction in the prices of slow moving inventory on July 1, 2016. This was primarily the cause of a 10.7% decrease in the average selling price for all our products in the current quarter to RMB 27.6 per square meter of ceramic tile as compared to RMB 30.9 per square meter of ceramic tile in the year-ago quarter. This was the first decline in average selling price following eleven quarters of period over year-ago period increases. It was also the biggest such decline in three years which was then also due to an industry retrenchment. We attribute the current quarter's decrease in both sales volume and average selling price to continued difficult macroeconomic and real estate conditions in China.

We expect the currently challenging market conditions to continue for the remainder of this year and into next year as the pace of property construction has slowed substantially, especially for moderately priced residential units which are the core of our business. A further decline in new building projects is likely to occur as the Chinese government is intent upon restricting property-related investments to cool high property prices which have risen dramatically in China's largest cities as well as to reign in the borrowing that has occurred among property developers and the overweighting of mortgages in the banking sector. However, additional land could be made available for development to rebalance supply and demand and to tamp down an increase in property prices in China's major cities.

Although a period of retrenchment has emerged in our sector, we believe that the building materials sector is sustainable in the long-term since the economic fundamentals for property development and construction are underpinned by the Chinese government's policy of urbanization. Overall, we expect lower growth in residential building as compared to what has occurred historically, especially in smaller cities that still have a large inventory of unsold properties.

We typically receive orders from customers two months in advance of production on a rolling basis. We enter into a dealership agreements with customers, and a sales or purchase contract each time a customer places an order. As of September 30, 2016, our backlog was approximately RMB 96.0 million (US$ 14.4 million), which represents approximately the next two months of revenue as of the end of the third quarter. This compares to a backlog of approximately RMB 159.0 million as of September 30, 2015, a year-over-year decrease of 39.6%. Under normal circumstances, our backlog is an indicator of revenues that might be expected in the next quarter, though it is subject to change as a result of unforeseen business conditions and events including credit payment terms.

In our view, we are reasonably well positioned to weather the current headwinds caused by a downturn in China's construction industry due to our prominent name recognition, expertise, product customization, and ability to operate in a lean and efficient manner with best-in-class manufacturing facilities. We foresee a possible boost in the Chinese government's infrastructure spending on affordable and senior housing which could generate opportunities for our company. We will continue to be opportunistic and adaptive to the market environment and will seek to pursue new business opportunities in an attempt to countervail currently challenging market conditions.

Second Quarter 2016 Financial Results

• Revenue was RMB 206.5 million (US$ 31.1 million), down 20.6% from the second quarter of 2015
• Earnings per share on a basic and fully diluted basis were RMB 8.65 (US$ 1.30) and RMB 7.81 (US$ 1.18), respectively, as compared to basic and fully diluted earnings per share of RMB 7.53 in the second quarter of 2015.

"For the second quarter of 2016, we experienced challenging market conditions due to the continued slowing in the real estate and building materials sectors.  Sales volume declined 21% as compared to the year-ago quarter and fell 31% for the first six months of 2016 as compared to the year-ago six months. However, income derived from a lease contract and a lower tax rate enabled us to achieve a 22% increase in net profit in the second quarter as compared to the second quarter of 2015.  Further, our cash flow remained reasonable as we continue to operate in a lean manner and are more focused than ever on generating income," said Mr. Jiadong Huang, CEO of China Ceramics.

"During the second quarter, we utilized production facilities capable of producing 27 million square meters of ceramic tiles per year out of a total annual production capacity of 72 million square meters.  In order to generate cash flow, we have entered into a contract to lease out an idle production line in our Hengdali facility that has the capacity to produce 10 million square meters of ceramic tiles.  As we have in past quarters, we maintained a reduced utilization of existing plant capacity based on the current market environment in order to keep our operating costs low, and we will bring additional capacity online as the business environment improves."

"For the remainder of 2016, we anticipate a slowdown as compared to last year.  In our view, the building materials sector has become more cyclical than usual as unsold real estate has yet to be worked through their distribution channels which have limited new construction projects. In the long-term, we believe that real estate will continue to be vital to China's economy as it is underpinned by urbanization which is essential for domestic growth.  We are well positioned to capitalize on an eventual rebound in the sector as many smaller competitors have exited the space," concluded Chairman and Chief Executive Officer Jiadong Huang.

Business Outlook

In the second quarter of 2016, we experienced a contraction in our sales volume compared to the second quarter of 2015 due to the effects of a slowdown in China's construction and real estate sectors. In the second quarter of 2016, the Company's sales volume was 6.6 million square meters of ceramic tiles, a decrease of 21.2% as compared to sales volume of 8.4 million square meters of ceramic tiles in the year-ago quarter.  For the first six months of 2016, sales volume was 10.7 million square meters of ceramic tiles, a decrease of 30.7% as compared to sales volume of 15.4 million square meters for the first six months of 2015.   We believe that the current quarter's decrease in sales volume is due to difficult macroeconomic and real estate conditions in China as evidenced by slowing price growth, a reduction in new construction and a decrease in residential properties sold in recent months.  However, the average selling price for our products continued to increase, with the Company's average selling price per square meter increasing 0.6% to RMB 31.2, as compared to an average selling price of RMB 31.0 per square meter of ceramic tile in the year-ago quarter.

We expect the currently challenging market conditions to continue for the second half of 2016 as potentially lower property investment coupled with higher land prices could slow new property development.  The rise in home prices slowed in July which could also portend a possible slowing in demand. The challenging environment is exacerbated in smaller cities as these urban areas continue to have the largest inventories of unsold homes.  However, we believe that in the long-term the economic fundamentals for growth are still in place, as the real estate and construction sectors are underpinned by urbanization which is essential to China's domestic growth. Further, the Government has been supportive of the real estate sector over the last two years when it took a variety of actions to spur demand.

We typically receive orders from customers two months in advance of production on a rolling basis. We enter into a dealership agreement with customers, and a sales or purchase contract each time a customer places an order. As of June 30, 2016, our backlog was approximately RMB 143.0 million (US$ 21.5 million), which represents approximately the next two months of revenue as of the end of the second quarter. This compares to a backlog of approximately RMB 217.3 million as of June 30, 2015, a year-over-year decrease of 34.2%. Under normal circumstances, our backlog is an indicator of revenues that might be expected in the next quarter, though it is subject to change as a result of unforeseen business conditions and events including credit payment terms.

In our view, China's urbanization trend will continue into the foreseeable future and favor a sustainable building materials sector.  Government support for both affordable and senior housing should also generate opportunities for real estate companies.  In addition, there is pressure to upgrade China's existing housing stock to meet today's building standards.  We believe that our excellent brand recognition, market reputation and wide array of high quality products will meet our customers' needs as they plan new projects.

JINJIANG, China, July 14, 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 receipt of a letter from the NASDAQ Stock Market ("Nasdaq") stating that the Company has regained compliance with Nasdaq's Listing Rule 5550(a)(2) minimum closing bid price requirement and that the matter is now closed.

China Ceramics had previously been notified by Nasdaq that it was not in compliance with the minimum bid price rule because its common stock failed to meet the closing bid price of $1.00 or more for 30 consecutive business days. In order to regain compliance with the rule, the Company was required to maintain a minimum closing bid price of $1.00 or more for at least 10 consecutive trading days. This requirement was met on June 12, 2016, the tenth consecutive trading day when the closing bid price of the Company's common stock was over $1.00.  The Company undertook a reverse stock split on June 28, 2016, to cure the Nasdaq listing deficiency.

"Regaining compliance with Nasdaq's continued listing requirements in our securities on the Nasdaq Capital Market is important for the Company and our shareholders," commented Jiadong Huang, Chief Executive Officer of China Ceramics.  "With this issue behind us, management will continue to pursue its objectives of strengthening the Company's core business and maximizing shareholder value."

JINJIANG, China, May 23, 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 the results of its Special Meeting of Shareholders (the "Meeting"), held at the Company's principal executive offices on May 23, 2016, in Jinjiang, Fujian, China.

A total of 11,460,841 common shares, representing 52.4% of the issued and outstanding common shares as of the record date for the Meeting, were represented in person or by proxy at the meeting. 

At the Meeting, the Company's shareholders approved a proposal on a one-for-eight combination of all of the Company's outstanding ordinary shares and to authorize an amendment to the Company's Amended and Restated Memorandum and Articles of Association to increase the par value of the Company's shares from $0.001 per share to $0.008 per share.

The Board of Directors will determine whether to effect the share combination in the coming months.

JINJIANG, China, May 23, 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 the results of its Special Meeting of Shareholders (the "Meeting"), held at the Company's principal executive offices on May 23, 2016, in Jinjiang, Fujian, China.

A total of 11,460,841 common shares, representing 52.4% of the issued and outstanding common shares as of the record date for the Meeting, were represented in person or by proxy at the meeting. 

At the Meeting, the Company's shareholders approved a proposal on a one-for-eight combination of all of the Company's outstanding ordinary shares and to authorize an amendment to the Company's Amended and Restated Memorandum and Articles of Association to increase the par value of the Company's shares from $0.001 per share to $0.008 per share.

The Board of Directors will determine whether to effect the share combination in the coming months.

China Ceramics Co., Ltd. and Its Subsidiaries

Consolidated Statements of Profit or Loss and Other Comprehensive Income

For the Years Ended December 31, 2015 2014 and 2013

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."

JINJIANG, China, Feb. 4, 2016 /PRNewswire/ -- China Ceramics Co., Ltd. (NASDAQ Global Market: CCCL) ("China Ceramics" or the "Company"), a leading Chinese manufacturer of ceramic tiles used for exterior siding and for interior flooring and design in residential and commercial buildings, today announced the pricing of a public offering of the Company's common shares and warrants with expected total gross proceeds of $900,000. The offering is expected to close on or about February 8, 2016, subject to satisfaction of customary closing conditions. 

The offering was priced at $0.63 per common share, with each common share coupled with one five-year warrant to purchase one common share, at an exercise price of $0.78 per share, and one six-month warrant to purchase one common share, at an exercise price of $0.63 per share.

China Ceramics plans to use the net proceeds from the offering to fund inventory, distribution expenses, vendor obligations outside of the PRC, as well as for general corporate and working capital purposes.

Dawson James Securities, Inc. acted as the sole placement agent in connection with the offering.

China Ceramics Co., Ltd.

$20,000,000

Shares

Debt securities

Warrants

We may offer and sell shares, debt securities or warrants in any combination from time to time in one or more offerings, at prices and on terms described in one or more supplements to this prospectus. The debt securities and warrants may be convertible into or exercisable or exchangeable for our shares or other securities. The aggregate initial offering price of all securities sold by us under this prospectus will not exceed US$20,000,000.

Each time we sell securities, we will provide a supplement to this prospectus that contains specific information about the offering and the terms of the securities. The supplement may also add, update or change information contained in this prospectus. We may also authorize one or more free writing prospectuses to be provided in connection with a specific offering. You should read this prospectus, any supplement and any free writing prospectus before you invest in any of our securities.

We may sell the securities independently or together with any other securities registered hereunder. We may sell the securities through one or more underwriters, dealers and agents, or directly to purchasers, or through a combination of these methods, on a continuous or delayed basis. See “Plan of Distribution.” If any underwriters, dealers or agents are involved in the sale of any of the securities, their names, and any applicable purchase price, fee, commission or discount arrangements between or among them, will be set forth, or will be calculable from the information set forth, in the applicable prospectus supplement.

Our shares are listed on the NASDAQ Global Market under the symbol “CCCL”. On October 2, 2015, the closing price of our shares was $0.75 per share.

JINJIANG, China, Jan. 6, 2016 /PRNewswire/ -- China Ceramics Co., Ltd. (NASDAQ Global Market: CCCL) ("China Ceramics" or the "Company"), a leading Chinese manufacturer of ceramic tiles used for exterior siding and for interior flooring and design in residential and commercial buildings, today announced that it has completed a new production line to manufacture glazed brick ceramic tiles in its Hengdali facility in Gaoan, Jiangxi Province, China.

"We are excited about the addition of glazed brick ceramic tiles to our product portfolio as it is engineered to be a highly effective and customized roofing solution for both high-rise apartment buildings and housing projects. Further, it complements our existing ceramic tile building products and provides a competitively-priced solution for property developers," said Mr. Jiadong Huang, Chief Executive Officer of China Ceramics. "Once in production, we believe that this new product will be one of the highest quality roofing bricks available in the building materials market and we are pleased that it further broadens our already extensive product line."

The new production line is optimized to manufacture customized size ranges of glazed brick ceramic tiles in a manner that maximizes production efficiency and output. It also increases the Company's total number of production lines from sixteen to seventeen. The new production line will undergo extensive testing procedures in the current quarter and full production is expected to begin in the second quarter of 2016.

Although there are currently some pre-orders for glazed brick ceramic tiles, we do not expect sales to ramp until the second quarter of 2016. We have incurred capital expenditures of RMB 93.0 million (US$ 14.6 million) to date in connection with the new production line, although additional expenditures are possible prior to the production line being fully operational. The new glazed brick ceramic tiles will be sold alongside our existing ceramic tile products to property developers on a direct basis and by our network of distributors throughout China.

• Revenue was RMB 339.0 million (US$ 53.3 million), up 5.9% from the third quarter of 2014
• Earnings per fully diluted share were RMB 1.32 (US$ 0.21) for the third quarter ended September 30, 2015 as compared to RMB 1.75 for the third quarter of 2014. On a non-GAAP basis, earnings per fully diluted share for the current quarter increased 14.8% fromRMB 1.15 in the third quarter 2014, as adjusted for the non-cash RMB 12.2 million fair value gain on derivative financial instruments in the year-ago quarter.

"We reported solid financial results in the third quarter due to our continued strong marketing efforts, sustained pricing power and a modest improvement in China's real estate and construction markets. The quarter's modestly improved top line results were driven by improved customer demand and a higher average selling price for our products. Further, a gradual migration of our sales towards higher margin products helped to solidify our margins in the quarter. We are also excited about our new glazed brick ceramic tile product which will help diversify our product portfolio even further," said Mr. Jiadong Huang, CEO of China Ceramics.

"We are utilizing production facilities capable of producing 47 million square meters of ceramic tiles per year out of a total annual production capacity of 72 million square meters. This was a modest 4.4% decrease over what we utilized during this period last year. We hope to bring additional capacity online going forward as business conditions improve.

"For the fourth quarter, we anticipate a modest improvement in the macroeconomic factors which contribute to the demand for our products. However, we also expect a seasonal slowdown consistent with the construction building cycle which would lead to lower sequential fourth quarter results. In the periods ahead, we plan to especially focus upon developing stronger relationships with larger property developers and we plan to tailor our marketing efforts towards those cities in China which offer better potential for new property development. Despite periods of occasional volatility, we believe that China's urbanization and economic growth continue to support the viability of our business. We also believe that we have the management expertise and operating infrastructure to adapt to difficult market conditions as well as to capitalize upon the opportunities presented by an improving market environment," concluded Mr. Jiadong Huang.

Business Outlook

We expect modestly improving market conditions for the rest of the year which we believe could extend into 2016 attributable to government policies to support the real estate market in China. The new directives include a lower first home down payment ratio of 25% targeting Tier 2 and Tier 3 cities and the lowering of a second home down payment to 20%. Both of these steps should improve the ability of buyers to purchase homes. A steady drop in bank lending rates also appear to have helped to spur demand as property sales have begun to improve and home prices have also edged up, especially in Tier 1 cities. In addition, China's State Council announced a cut in the minimum capital ratio for fixed asset investments to 25% which could unlock capital for property developers to acquire new land and begin property development projects.

In the third quarter of 2015, we experienced an improvement in customer demand as sales volume rose 2.8% from the year-ago quarter. This reflects an improvement in demand from a slowdown that occurred in the first half of 2015 when our sales volume contracted 7.8% from the first half of 2014. The improvement in the current quarter leads us to believe that we could be emerging from a period of challenging market conditions. However we need to see further positive trends before we can determine whether we are about to experience a significant turnaround in business conditions. Our marketing and distribution capabilities and strong brand reputation remain key competitive attributes, helping us to realize a 3.3% rise in our average selling price in the third quarter from the year-ago quarter, which is consistent with strong and stable product pricing over the last six quarters.

Although we experienced a slight contraction in customer demand for the first nine months of 2015, in the long-term we believe that the substantial urbanization and economic trends underlying the growth in China's real estate sector are sustainable. Since the real estate sector is estimated to comprise 15% of China's gross domestic product, we believe that the Chinese government will continue to adopt policies to support the real estate sector and its related sectors.

We typically receive orders from customers two months in advance of production on a rolling basis. We enter into a dealership agreement with customers, and a sales or purchase contract each time a customer places an order. As of September 30, 2015, our backlog was approximately RMB 159.0 million (US$ 25.0 million) which represents approximately the next two months of revenue as of the end of the third quarter. This compares to a backlog of approximately RMB 140.3 million as of September 30, 2014, a year-over-year increase of 13.3%. Under normal circumstances, our backlog is an indicator of revenues that might be expected in the next quarter, though it is subject to change as a result of unforeseen business conditions and events including credit payment terms.

We continue to anticipate consolidation among property developers and believe that we are optimally positioned to provide quality products and service to this constituency. We also believe that exits by smaller competitors will continue to occur in our sector as less well-financed companies will not be able to comply with stricter environmental regulations. We believe that our extensive product platform, reputation for quality and excellent customer service continue to enhance customer loyalty and give us confidence in securing more orders. Further, we believe that our deep management and marketing experience in the sector and modernized operating production plant afford us a sustainable competitive advantage which will enable us to capitalize upon market opportunities in the periods ahead.

JINJIANG, Fujian Province, China, September 22, 2015 /PRNewswire/ -- China Ceramics Co., Ltd. (NASDAQ Global Market: CCCL) ("China Ceramics" or the "Company"), a leading Chinese manufacturer of ceramic tiles used for exterior siding and for interior flooring and design in residential and commercial buildings, today announced that on September 21, 2015, it received a written notice (the "Notice) from the Listing Qualifications department of The Nasdaq Stock Market ("Nasdaq") indicating that the Company is not in compliance with the minimum bid price requirement of $1.00 set forth in Nasdaq Listing Rule 5450(a)(1) for continued listing on the Nasdaq Global Market.

The Nasdaq Listing Rules require listed securities to maintain a minimum bid price of $1.00 per share and, based upon the closing bid price for the 30 consecutive days ended September 17, 2015, the Company did not meet this requirement. China Ceramics has been provided a 180 day period in which to regain compliance. During this period, the closing bid price of the Company's ordinary shares must be at least $1.00 for a minimum of ten consecutive business days to regain compliance. In addition, following the initial 180 day period, China Ceramics may be eligible for an additional 180 day period to regain compliance after review by the Nasdaq Staff.

The notification letter has no effect on the listing of the Company's ordinary shares at this time and the shares will continue to trade on the Nasdaq Global Market under the ticker "CCCL".

Second Quarter 2015 Financial Results

Revenue for the second quarter ended June 30, 2015 was RMB 260.0 million (US$ 41.9 million), a decrease of 3.2% from RMB 268.6 million for the second quarter ended June 30, 2014.

Earnings per fully diluted share were RMB 0.94 (US$ 0.15) for the second quarter ended June 30, 2015 as compared to RMB 0.03 for the second quarter of 2014. Excluding the non-cash RMB 3.0 million fair value loss on derivative financial instruments incurred in the second quarter of 2014, the year-ago quarter earnings per fully diluted share was RMB 0.18 per share.

"We reported stable cash flow in the second quarter despite the challenging operating environment in China's real estate and construction markets," said Jiadong Huang, Chairman and Chief Executive Officer of China Ceramics. "While our top-line was marginally lower as compared to the year-ago quarter, continued market acceptance of our product pricing enabled us to report a 47.9% increase in gross profit. Further, the absence of several one-time expenses incurred in the year-ago quarter resulted in a more than doubling of EBITDA to $7.1 million versus the year-ago quarter.

"However, customer demand shrunk in the quarter as seen by the 8.7% decline in sales volume from the year ago quarter, which follows the first quarter's 5.7% year-over-year decline in customer demand. Given the overall market slowdown in our sector this year, we may need to engage in more intensive marketing and therefore incur additional selling expenses in the periods ahead to maintain market share as well as to sustain the current quarter's strong product pricing.

"In the second quarter, we utilized plant production facilities capable of producing 34 million square meters of ceramic tiles per year out of our total annual production capacity of 72 million square meters of ceramic tiles. This was a 20.9% decrease over what was utilized during this period last year. We hope to bring additional capacity online going forward as business conditions improve.

"Despite periods of short term slowing and likely difficult market conditions ahead, we continue to believe that the long-term fundamentals for growth in the real estate and construction industries continue to be in place. In addition, we believe that an important element of our success is our ability to adapt to market conditions and to continue to provide optimal customer-centric solutions to the marketplace. While our business sector continues to be highly competitive, our brand name recognition and reputation for quality and service has enabled us to raise and maintain the average selling price of our products over the past two years. We look for market conditions to eventually improve and we intend to continue to develop closer relationships with the larger property developers and transition our product mix towards better performing, higher margin ceramic tiles," concluded Chairman and Chief Executive Officer Jiadong Huang.

Business Outlook

As indicated last quarter, we expect currently challenging market to prevail through the second half of the year. In the second quarter of 2014, we experienced a contraction in customer demand as market conditions in China's real estate and construction sectors became challenging due to overbuilding and excess inventory in some cities. However, although our sales volume fell 8.7% from the year-ago quarter, our average selling price rose 6.5% from the year-ago quarter which we attribute to our high quality products and strong marketing efforts.

Although the slowdown is likely to continue in the short-term, in the long-term we believe that the urbanization and economic trends underlying the growth in China's real estate sector are sustainable. Since the real estate sector is estimated to comprise 15% of China's gross domestic product, the Chinese government could well continue to adopt an array of policies to stimulate the real estate sector. In June 2015, the People's Bank of China announced a cut in its one-year benchmark lending rate to 4.85%. This follows other measures such as lowering buyer minimum down payment ratios and lowering the reserve requirement ratio for banks in order to free up capital for mortgage lending. We believe that the recently released data of a 0.54% average price rise of a new home in China's major cities in July, following similarly modest increases in May and June, points to the potential resilience of the real estate sector.

We typically receive orders from customers two months in advance of production on a rolling basis. We enter into a dealership agreement with customers, and a sales or purchase contract each time a customer places an order. As of June 30, 2015, our backlog was approximately RMB 217.3 million (US$ 35.0 million) which represents approximately the next two months of revenue as of the end of the second quarter. This compares to a backlog of approximately RMB 221.2 million as of June 30, 2014, a year-over-year decrease of 1.8%. Under normal circumstances, our backlog is an indicator of revenues that might be expected in the next quarter, though it is subject to change as a result of unforeseen business conditions and events including credit payment terms.

We intend to gradually shift the focus of our marketing efforts towards larger cities since we are seeing pricing increases in first-tier cities. We will also continue to market to smaller cities where the government is continuing to boost infrastructure investments. The upgrading of existing housing stock in both larger and smaller cities is also an important component of demand.

We reiterate our belief that smaller competitors are likely to exit our sector due to their lack of modernized production techniques and difficulty in complying with new environmental regulations. We also anticipate consolidation among large property developers and believe that we provide quality products and optimal service to this important constituency. We continue to work closely with our customers and develop new products that we believe give us a competitive advantage. We believe that our experience, expertise and name brand recognition will enable us to ultimately weather any sector volatility in the periods ahead.

Dividend Policy for Fiscal 2015

The Company's Board of Directors have not yet made a determination as to the Company's dividend policy for 2015. However, there are concerns of a continued slowdown in China's economy as well as China's real estate sector which would negatively impact the building materials industry. Further, Management believes that it is likely that difficult market conditions in the Company's business sector will prevail for the rest of the year. Therefore, the Board of Directors will engage in additional deliberations in the future as to the Company's dividend policy and will update the market accordingly.

• Revenue was RMB 209.8 million (US$ 33.8 million), up 0.5% from the first quarter of 2014
• Earnings per fully diluted share for the first quarter ended March 31, 2015 were RMB 0.14 (US $0.02), as compared to a loss per fully diluted share of RMB 3.50 for the first quarter of 2014. Excluding the non-cash RMB 68.7 million fair value loss on derivative financial instruments incurred in the first quarter of 2014, the year-ago quarter's loss per fully diluted share was RMB 0.14.

"We reported positive cash flow for the first quarter of 2015 amid challenging conditions in China's real estate and construction sectors. While our top line was virtually even with the year-ago quarter, continued market acceptance of our product pricing and improved cost efficiencies led to a 49% increase in our gross profit. However, our lower sales volume and operating expenses constrained our profitability in the quarter," said Mr. Jiadong Huang, CEO of China Ceramics.

"We utilized production facilities capable of producing 27 million square meters of ceramic tiles per year out of a total annual production capacity of 72 million square meters. We will bring additional capacity online as the business environment improves. Although sales volume in the first quarter was lower than in past periods, we saw demand rise for our higher margin ceramic tiles which sustained the reasonably solid average selling price of our products."

"We believe that the operating environment for the rest of the year will continue to be challenging due to abundant real estate inventory and softness in the pricing of residential housing. However, the real estate sector continues to be an important component of China's urban growth, which is a key part of the Government's plan to boost China's domestic consumption. We believe that our sales team is uniquely positioned to focus on the potential consolidation of real estate development companies and that our strong balance sheet and operating infrastructure will enable us to win important new business," concluded Mr. Jiadong Huang.

Business Outlook

We expect the currently challenging market conditions to continue into the second half of the year. However, on a long-term basis we believe that the underlying macroeconomic fundamentals of our business continue to be sustainable. In the first quarter of 2015, we were able to sustain a reasonably solid average selling price for our products which we believe is attributable to our strong brand name and excellent customer relationships. We view the decrease in the current quarter's sales volume to 7.0 million square meters from 7.5 million square meters from the year-ago quarter as due to difficult market conditions evidenced by a decrease in residential properties sold in China in recent months. This remains a concern as residential property prices have shown monthly declines on a year-to-year basis due to excess inventory.

However, since the real estate property sector in China is estimated to comprise 15% of its economic output, a healthy real estate sector is important to China's growth. Consequently, the Chinese government has taken various actions to stimulate the real estate sector. The most recent measure was the lowering the reserve requirement ratio for banks of 100 basis points in April 2015 to stimulate the economy as well as to spur mortgage lending. Prior actions include lowering interest rates, reducing the minimum down payment for second-home buyers to 40% from 60% and lowering the minimum down payment to 20% from 30% for first-time home buyers. Further, the Government has indicated that it may encourage developers to reduce their inventory of residential stock by converting unsold properties into social housing in certain markets.

We typically receive orders from customers two months in advance of production on a rolling basis. We enter into a dealership agreement with customers and a sales or purchase contract each time a customer places an order. As of March 31, 2015, our backlog was approximately RMB 165.6 million (US$ 26.7 million), which represents the next two months of revenue as of the end of the first quarter. This compares to a backlog of two months' revenue of RMB 169.7 million as of March 31, 2014, a year-over-year decrease of 2.4%. Under normal circumstances, our backlog is an indicator of revenues that might be expected in the next quarter, though it is subject to change as a result of unforeseen business conditions and events including credit payment terms.

Looking forward, we expect there to be consolidation among both ceramic tile producers and larger property developers. We believe that our proven expertise, advanced manufacturing and deep product platform enables us to optimally service large property developers which could lead to market share gains. We are confident that our management and operating capabilities differentiate us from our competitors which will enable us to capitalize upon market opportunities in our sector in the periods ahead.

Fourth Quarter 2014 Financial Results

• Revenue was RMB 240.1 million (US$ 38.7 million), up 9.0% from the fourth quarter of 2013.
• Earnings per fully diluted share were RMB 0.23 (US$ 0.04) for the fourth quarter ended December 31, 2014 as compared to loss per fully diluted share of RMB 0.52 for the fourth quarter of 2013. Per share calculations for the fourth quarters of 2014 and 2013 were computed using 20.4 million shares outstanding.

"We are pleased to report sound financial results for the fourth quarter of 2014, with a 9% increase in revenue and positive net earnings, driven by an increase in our sequential average selling price and modestly higher sales volume. The fourth quarter saw nearly a 9% increase in our average selling price attributable to a moderately improved macroeconomic environment, our strong marketing efforts and long-standing reputation for best-in-class products and service. During the fourth quarter, we were careful not to incur unnecessary costs and so utilized production facilities capable of producing 28 million square meters of ceramic tiles per year out of a total annual production capacity of 72 million square meters. We will bring additional capacity online as the business environment improves," said Mr. Jiadong Huang, CEO of China Ceramics.

"For the full year 2014, we generated an 11% increase in revenue, a 93% increase in our gross profit and solid operating profit before taking income statement deductions for realized and unrealized derivatives losses. In addition, in 2014 we responded quickly to regulatory requirements by changing our fuel sourcing to natural gas from coal in our Hengda plant and we increased our advertising to promote newly developed products to retain our competitive edge. We also saw more than a doubling in the sales of our high-margin polished glazed ceramic tiles in 2014. We believe that demand for this series of ceramic tile, which can be manufactured according to customer specifications and are used for both functional and decorative uses inside homes, will continue to increase. We believe that our ability to adapt to market conditions while capitalizing upon market opportunities is a key competitive advantage.

"Looking ahead to 2015, we believe that the operating environment will improve modestly as compared to last year and that the macroeconomic fundamentals underlying our business are sustainable. In our view, urbanization is a long-term phenomenon in China that continues to be vital to economic growth and prosperity and the real estate and construction sectors continue to be very important growth sectors of the Chinese economy. While we are prepared for occasional sector cyclicality, we believe that our well-capitalized balance sheet, modernized facilities and reputation as a premier ceramic tile producer enables us to weather occasionally volatile business conditions and capitalize upon the opportunities presented by China's growth and development," concluded Mr. Jiadong Huang.

Business Outlook

In the fourth quarter of 2014, the 8.7% increase of the average selling price of our ceramic as compared to the year-ago quarter drove the quarter's revenue which we view as reflective of our sound market positioning. It is our view that modestly improved macroeconomic conditions have emerged subsequent to the sector downturn in our sector that occurred in late 2012. After having to institute price cuts in late 2012 and early 2013 in order to maintain market share, we steadily increased our average selling price over the last eight quarters. Consequently, the average selling price of our ceramic tiles has increased 27.5% to RMB 31.1 per square meter as of the fourth quarter of 2014 from the first quarter of 2013 which reflects a recovery in our product pricing.

We typically receive orders from customers two months in advance of production on a rolling basis. We enter into a dealership agreement with customers and a sales or purchase contract each time a customer places an order. As of December 31, 2014, our backlog was RMB 137.0 million (US$ 22.1 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 136.6 million as of December 31, 2013, a year-over-year increase of 0.3%. 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), we have increased the selling prices of all products by an average of approximately 5%, and of porcelain tiles by approximately 10% 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. However, we view the overall increase in revenue during fiscal 2014 as compared to fiscal 2013 as due to our ability to persevere despite challenging market conditions as well as the continued viability of urbanization that underpins China's real estate and construction sectors.

Looking ahead in 2015, we expect 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 economy growth. In order to address the challenging market environment of 2014, the Chinese government has taken various actions to stimulate real estate development and home purchases. These include the lowering of interest rates by the central bank, including a recent rate cut in late February 2015, and relaxed reserve requirements for small banks to increase lending. We believe that these actions could positively impact our business since it could help real estate developer begin new projects by lowering their cost of borrowing as well as improve mortgage terms for borrowers which would make home purchases more affordable. Regulatory easing has also included a loosening of home purchase restrictions in second and third tier cities intended to moderate pricing and increase demand. This could be of direct benefit to the Company since its marketing strategies have historically focused upon real estate projects in second and third tier cities.

We believe that continued urbanization trends and the importance of real estate and its associated sectors to China's economic growth could lead to further government policies which would be supportive of our business. In addition, competitive pressures over the last year has led to a contraction in our 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.

Finally, we expect there to be a consolidation trend among the larger property developers in the year ahead. This would benefit larger ceramic producers such as China Ceramics who can service these large enterprises and enable us to an opportunity for us to increase our market share in the periods ahead. We believe that our strong balance sheet, healthy inventory levels, comprehensive product line and ability to implement operating efficiencies due to our modern plant and equipment are competitive advantages that differentiate us from our competitors. Our goal is to market more aggressively in the periods ahead and generate higher sales volume consistent with improving market conditions that would lead to stronger market positioning and continued sound operating results.

JINJIANG, China, January 15, 2015 /PRNewswire/ -- China Ceramics Co., Ltd. (NASDAQ Global Market: CCCL) ("China Ceramics" or the "Company"), a leading Chinese manufacturer of ceramic tiles used for exterior siding and for interior flooring and design in residential and commercial buildings, today announced its launching of its series of Eco Plate ceramic tiles, an environmentally friendly ceramic tile product. The Eco Plate series is a lightweight, thermal insulating and energy-saving ceramic tile developed as a result of the Company's research and development efforts. It is expected that this innovative product will enter into significant production in 2015 due to its unique features.

"We believe that our new Eco Plate ceramic tile series represents a growing industry trend towards low carbon, environmentally friendly products that are produced in an energy efficient manner. Our world-class manufacturing plant produces these ceramic tiles in compliance with the highest of international standards. Eco Plate ceramic tiles are often a better choice than other building materials for many construction projects due to light and thermal control concerns," said Mr. Jiadong Huang, CEO of China Ceramics. "Eco Plate ceramic tiles are ideal for newly designed buildings consistent with today's modern urban architecture as they fulfill stringent testing requirements and are superior to other products on an environmentally friendly basis."

The new China Ceramics Eco Plate ceramic tile series fulfills industry mandates announced at The Haixi Construction Ceramics Innovation and Development Summit held in December 2014 in Jinjiang, China's main industrial center for ceramic tile production. The summit called for a new national standard for ceramic tiles and new products to address intensified global competition. During the summit, China Ceramics' Eco Plate ceramic tiles received an award as a Top Ten Innovative Product.

China Ceramics has developed a wide variety of Eco Plate ceramic tiles in different style categories that are designed to look like granite, slate and marble. The Company's advanced manufacturing equipment enables the production of these new ceramic tiles with a lower carbon footprint which further enhances its environmentally friendly character. Eco Plate ceramic tiles are an important addition to the Company's prominent Hengda ceramic tile line and will be marketed in over 40 distribution centers in large cities such as Beijing, Shanghai, Tianjin, Yingkou and Foshan as well as second and third tier cities. The new Eco Plate ceramic tiles are also being targeted for use in commercial, educational and public buildings consistent with China's new environmental protection policies intent upon lowering pollution levels and encouraging energy efficient operations.

JINJIANG, China, Nov, 18, 2014 /PRNewswire/ -- China Ceramics Co., Ltd. (NASDAQ Global Market: CCCL) ("China Ceramics" or the "Company"), a leading Chinese manufacturer of ceramic tiles used for exterior siding and for interior flooring and design in residential and commercial buildings, today announced that on November 12, 2014, it received a written notice (the "Notice) from the Listing Qualifications department of The Nasdaq Stock Market ("Nasdaq") indicating that the Company is not in compliance with the minimum bid price requirement of $1.00 set forth in Nasdaq Listing Rule 5450(a)(1) for continued listing on the Nasdaq Global Market.

The Nasdaq Listing Rules require listed securities to maintain a minimum bid price of $1.00 per share and, based upon the closing bid price for the 30 consecutive days ended November 11, 2014, the Company did not meet this requirement. China Ceramics has been provided a 180 day period in which to regain compliance. During this period, the closing bid price of the Company's ordinary shares must be at least $1.00 for a minimum of ten consecutive business days to regain compliance. In addition, following the initial 180 day period, China Ceramics may be eligible for an additional 180 day period to regain compliance after review by the Nasdaq Staff.

China Ceramics will work to regain compliance during the initial 180 day compliance period and will actively monitor its performance with respect to the listing standards. The notification letter has no effect on the listing of the Company's ordinary shares at this time and the shares will continue to trade on the Nasdaq Global Market under the ticker "CCCL".

• Revenue was RMB 320.1 million (US$ 52.2 million), down 6.0% from the third quarter of 2013
• Earnings per fully diluted share were RMB 1.75 (US$ 0.28) for the third quarter ended September 30, 2014 as compared to RMB 0.21 for the third quarter of 2013. 

"We achieved solid revenue and profitability in the third quarter due to our strong marketing efforts and success in securing new business among China's real estate developers. The quarter's improved profitability was driven by a higher average selling price as we have substantially regained our pricing power from the business retraction that occurred in our sector approximately two years ago.  However, the increase in our average selling price somewhat negatively impacted our sales volume, causing a modest decline in our top-line results," said Mr. Jiadong Huang, CEO of China Ceramics.

"During the third quarter, we utilized production facilities capable of producing 49 million square meters of ceramic tiles per year out of a total annual production capacity of 72 million square meters. This was a 16% increase over plant utilization in the second quarter of 2014. We hope to bring additional capacity online going forward as our business improves.

"For the fourth quarter, we look for our customers to continue to adjust to our product price increases and also anticipate a seasonal slowdown consistent with the construction building cycle.  We believe that our superior brand name recognition, customer-centric focus and market positioning should enable us to sustain our average selling price increases and continue to build sales volume in the periodsahead. Although there may be occasional volatility associated with China's real estate sector going forward, the macroeconomic conditions under which we operate continue to offer positive long-term fundamentals as we look to gain market share and further our geographical reach," concluded Mr. Jiadong Huang.

Business Outlook

In the third quarter of 2014, we experienced a significant increase in revenue relative to the first two quarters of the year with stronger operating metrics.  Revenue increased 53.3% as compared to the first quarter of 2014 and 19.2% as compared to the second quarter of 2014, while gross profit margin increased to 13.1% in the current quarter from 4.5% in the first quarter of 2014 and 9.0% in the second quarter of 2014.  In addition, sales volume is up in the current quarter relative to the first two quarters, increasing 42.7% from the first quarter of 2014 and 16.3% from the second quarter of 2014.  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. However, we view the overall increase in revenue during the first nine months of 2014 as compared to the same period of 2013 as an indication of continued growth in China's real estate and construction sectors relative to the comparable period in 2013. 

Further, we view the 9.9% increase of the average selling price of our ceramic tiles in the third quarter as encouraging relative to the retrenchment that caused price cuts in the building materials sector in late 2012.  We have regained a substantial portion of its pricing power as the average selling price of our ceramic tiles of RMB 29.9 ($4.87)per square meter is now 22.5% higher than the average selling price of RMB 24.4 in the first quarter of 2013.  Although we have been able to steadily increase our average selling price over the last six quarters, we believes that some of our customers could still be adjusting to the product price increases which was a factor in the current quarter's 14.4% drop in sales volume relative to the third quarter of 2013.  We believes that our enhanced marketing efforts will help to produce wider customer acceptance of the new prices which could result in better sales of our ceramic tiles in the periods ahead so as to better utilize the full extent of our production capacity.

We typically receive orders from customers two months in advance of production on a rolling basis. We enter into a dealership agreement with customers and a sales or purchase contract each time a customer places an order. As of September 30, 2014, our backlog was RMB 171.7 million (US$ 28.0 million) which represents approximately the next two months of revenue as of the end of the third quarter. This compares to a backlog of approximately RMB 155.0 million as of September 30, 2013, a year-over-year increase of 10.8%. 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), we have increased the selling prices of all products by approximately 5%, and of porcelain tiles in particular by approximately 10%, in order to maintain our gross margin.

Although we are likely to experience occasional volatility in the periods ahead, we believe that the macroeconomic environment will continue to be relatively stable for the remainder of 2014 even as business typically slows due to the seasonality of the real estate industry. We note that residential real estate prices have flattened out in recent months reflecting a decrease in housing demand and units of housing properties being sold. This could lead to a contraction in the construction industry and adversely impact our sales volume in the periods ahead. To boost demand, the Chinese government has eased property market controls, accelerated infrastructure construction and relaxed reserve requirements for small banks in order to increase lending.  Local governments have also eased access to capital, curbed restrictions on home purchases and introduced tax incentives.  In our view, these measures tend to support China's property development and construction markets.

We believe that the real estate sector continues to be important in China's economy and that the Chinese government will continue to promote policies to promote urbanization and boost domestic economic growth.  The Chinese government has recently reiterated its position that the greatest potential for expanding domestic demand and sustaining economic growth in China lies in urbanization. Since urbanization leads to new property development and housing construction, government policies and current urbanization trends augur positive long-term fundamentals which could positively impact our business.

We believe that our ability to price our products to generate better margins has gradually improved and we will continue to focus on boosting sales volume, in particular, sales of premium, higher margin ceramic tiles. We believe that our ability to meet customized customer orders and wide product offerings equips us with a competitive advantage that smaller and less technologically advanced competitors cannot match.  Our goal is to solidify our pricing levels in the quarters ahead and continue to build sales volume consistent with China's urbanization and demographic trends.

Second Quarter 2014 Financial Results

• Revenue was RMB 268.6 million (US$ 43.3 million), up 20.6% from the second quarter of 2013
• Earnings per fully diluted share were RMB 0.03 (US$ 0.01) for the second quarter ended June 30, 2014 as compared to RMB 0.47 for the second quarter of 2013.

"We are pleased to report improved revenue and gross profit performance for the second quarter as compared to the same period a year ago consistent with an improving operating environment. The second quarter saw an 11% increase in sales volume and 9% rise in average selling price as compared to the second quarter of 2013," said Mr. Jiadong Huang, CEO of China Ceramics.

"However, higher advertising costs to promote newly developed ceramic tiles and losses attributable to foreign currency agreements impeded our profitability in the quarter. As stated previously, I, the Company's largest shareholder, and an affiliate of mine, agreed to assume these agreements. As a result, the Company will not be required to fund any losses related to these agreements and it will neither suffer any future liabilities nor realize any benefits arising under these agreements.

"In the second quarter, we utilized plant production facilities capable of producing 43 million square meters of ceramic tiles per year out of our total annual production capacity of 72 million square meters of ceramic tiles. This was a 54% increase over what was utilized during this period last year. We hope to bring additional capacity online going forward as our business improves.

"We believe that our ability to understand our customers and provide them with an array of product offerings to meet their building needs has sustained demand for our business. While our business sector continues to be highly competitive, our brand name recognition and reputation for quality and service has enabled us to raise our average selling price over the past year. As market conditions further improve, we will look to improve our product mix towards better performing, higher margin ceramic tiles. Importantly, recent government proposals promoting urbanization as vital to continued domestic economic growth should improve the macroeconomic conditions under which we operate and enable us to expand our footprint into new geographical urban areas," concluded Mr. Jiadong Huang.

Business Outlook

In the second quarter of 2014, we experienced stronger operating results relative to the comparable period last year. Sales volume of 9.2 million square meters of ceramic tiles rose 10.8% from that recorded in the second quarter of 2013 as conditions in China's real estate and construction sectors have continued to improve. In addition, as we are able to sell more higher-value polished glazed products, our average selling price rose 9.0% to RMB 29.1 (US$ 4.69) per square meter from the comparable quarter in 2013 and it is now at its highest level since the fourth quarter of 2012.

We typically receive orders from customers two months in advance of production on a rolling basis. We enter into a dealership agreement with customers and record a sales or purchase contract each time a customer places an order. As of June 30, 2014, our backlog was RMB 221.2 million (US$ 35.7 million) which represents approximately the next two months of revenue as of the end of the second quarter. This compares to a backlog of approximately RMB 240.4 million as of June 30, 2013, a year-over-year decrease of 8.0%. Further, since July 2014 we have increased the selling prices of all products by approximately 5% and of porcelain tiles by approximately 10% in order to maintain our gross margin due to an increase in our production costs (in particular, natural gas costs).

We believe that the macroeconomic environment will be relatively stable for the remainder of 2014 compared to last year. We believe that the real estate and construction sectors will continue to normalize as continued urbanization and population growth are expected to promote the building of new residential properties throughout urban areas of China. The Chinese government recently issued proposals to bring down barriers attributable to a nationwide household registration system in order to promote urbanization. This is consistent with its long-stated position that the greatest potential for expanding domestic demand and sustaining economic growth in China lies in urbanization. Since urbanization leads to new property development and housing construction, this recent proposal and other similar measures could positively impact the Company's business.

We believe that the purchasing power of our customers in China will continue to gradually improve and we expect to see increasing demand for premium ceramic tiles. Our new marketing showroom and proven research and development programs along with our upgraded and modern plant facilities enable us to differentiate ourselves from competitors and offer a variety of products and services consistent with this strategy. We plan to widen our distribution channels to penetrate emerging urban geographical areas so as to capitalize upon our competitive advantages in new markets.

First Quarter 2014 Financial Results

• Revenue was RMB 208.8 million (US$ 33.6 million), up 39.9% from the first quarter of 2013
• Loss per fully diluted share was RMB 3.50 (US $0.56) for the first quarter ended March 31, 2014, as compared to RMB 0.26 in the first quarter of 2013.

"We are pleased to report solid first quarter revenue and gross profit to begin 2014 as market conditions have begun to improve following last year's challenging market environment," said Mr. Jiadong Huang, CEO of China Ceramics. "The quarter's results were driven by both higher sales volume and a higher average selling price for our ceramic products as compared to last year's first quarter. This resulted in a strong 40% year-over-year increase in our top-line results.

"However, foreign currency transaction agreements that we entered into hindered our bottom line and resulted in a RMB 68.7 million (US$11.1 million) realized and unrealized fair value loss in the quarter. In July 2014, I, the Company's largest shareholder, and an affiliate of mine, agreed to assume these agreements. As a result, the Company will not be required to fund any losses related to these agreements and it will neither suffer any future liabilities arising under those agreements nor realize any benefits arising under those agreements.

"We continued to maintain a reduced utilization of our existing operating plant capacity in the first quarter of 2014 in order to keep our operating costs low. We are currently utilizing plant production facilities capable of producing 28 million square meters of ceramic tiles per year out of a total annual production capacity of 72 million square meters of ceramic tiles. We plan to bring additional capacity online as market demand dictates.

"We believe that the operating environment in 2014 will continue to improve and the demand drivers of our business are sustainable. The real estate and construction sectors continue to be vital to the Chinese economy. Long-term urbanization and population growth continue to be positive drivers for the development of our business sector. We believe that we have a solid platform in terms of our modernized facilities, new customer showroom and innovative marketing strategies. Given our extensive experience and deep expertise, we are confident that we can continue to capitalize upon the opportunities presented by China's robust growth and development," concluded Mr. Jiadong Huang.

Business Outlook

In the first quarter of 2014, we experienced stronger results relative to the comparable period last year and a seasonal slowdown consistent with the construction building cycle. Our sales volume of 7.5 million square meters of ceramic tiles rose 23.0% from that recorded in the first quarter of 2013 as conditions in China's real estate and construction sectors have begun to improve. In addition, our average selling price rose 14.8% from the comparable quarter in 2013 when we temporarily reduced our pricing on certain products to retain our market position.

We typically receive orders from customers two months in advance of production on a rolling basis. We enter into a dealership agreement with customers and a sales or purchase contract each time a customer places an order. As of March 31, 2014, our backlog was RMB 169.7 million (US$ 27.3 million) which represents approximately the next two months of revenue as of the end of the quarter. This compares to a backlog of approximately RMB 126.3 million as of March 31, 2013, a year-over-year increase of 34.4%. Under normal circumstances, our backlog is an indicator of revenues in the next quarter, though it is subject to change as a result of unforeseen business conditions and events including credit payment terms.

We believe that the macroeconomic environment will be relatively stable in 2014 with less volatility than what occurred in 2013. We believe that the real estate and construction sectors will further normalize as continued urbanization and population growth are expected to promote the building of new residential properties throughout urban areas of China. Although the government's general policy is to encourage the careful increase of land supplies, further clarification of government policies could help to reinforce further improvement in the real estate and construction sectors which are viewed as vital to sustaining China's economic growth.

JINJIANG, China, August 6, 2014 /PRNewswire/ -- China Ceramics Co., Ltd. (NASDAQ Global Market: CCCL) ("China Ceramics" or the "Company"), a leading Chinese manufacturer of ceramic tiles used for exterior siding and for interior flooring and design in residential and commercial buildings, today announced that on August 5, 2014, the NASDAQ Listing Qualifications staff notified the Company that, following the Company's filing of the Annual Report on Form 20-F for the fiscal year ended December 31, 2013, the Company regained compliance with the terms of the NASDAQ's continued listing requirements.

The Company has been informed by the NASDAQ Listing Qualification staff that trading will resume on Thursday, August 7, 2014.

Mr. Jiadong Huang, the Company's Chief Executive Officer, commenting on the notification, said, "Regaining compliance with NASDAQ's continued listing requirements and the resumption of trading in our securities on the Nasdaq Global Market are significant achievements for the Company and our shareholders. With this issue behind us, the Company's management will continue to pursue its objectives of strengthening the Company's core business and maximizing shareholder value."

China Ceramics Co., Ltd. and Its Subsidiaries

Consolidated Statements of Profit or Loss and Other Comprehensive Income

Management Discussion and Analysis

Revenue decreased by RMB 512.0 million ($84.6 million), or 35.4%, to RMB 932.9 million ($154.1 million) in the year ended December 31, 2013, from RMB 1,444.9 million for the year ended December 31, 2012. The year-over-year decrease in revenue was primarily driven by a 24.8% decrease in the sales volume of ceramic tiles to 34.7 million square meters in the year ended December 31, 2013 from 46.2 million square meters in the year ended December 31, 2012. In addition, we began price reductions in December 2012 that resulted in a 14.1% decrease in our average selling price in 2013 as compared to 2012 (RMB 26.9 ($4.4) per square meter for the year end 2013 per square meter compared to RMB 31.3 per square meter for 2012). We attribute our reduced sales volume to the continued challenging business conditions in China’s real estate and construction sector. However, we believe that the decrease in the pricing of our ceramic tile products is temporary and that product pricing will revert to normal levels once business conditions improve. Because no distributors ordered ultra-thin tiles for 2013, we stopped production of ultra-thin tiles in 2013.

Profit/(loss) attributable to shareholders. We recorded a profit of RMB 243.8 million attributable to shareholders for the year ended December 31, 2012 and a loss of RMB 2.0 million ($0.3 million) attributable to shareholders for the year ended December 31, 2013. The year-over-year change from net profit to net loss was primarily driven by lower gross profit in 2013.

JINJIANG, Fujian Province, China, July 10, 2014 /PRNewswire/ -- China Ceramics Co., Ltd. (NASDAQ Global Market: CCCL) ("China Ceramics" or the "Company"), a leading Chinese manufacturer of ceramic tiles used for exterior siding and for interior flooring and design in residential and commercial buildings, today announced that the first of its announced two semi-annual cash dividends of $0.0125 per share will be payable on July 14, 2014 to shareholders of record as of June 13, 2014.  The second cash dividend will be payable on January 14, 2015 with a record date of December 12, 2014.

JINJIANG, China, May 3, 2014 /PRNewswire/ -- China Ceramics Co., Ltd. (NASDAQ Global Market: CCCL) ("China Ceramics" or the "Company"), today announced that on May 1, 2014 it filed a notification on Form 12b-25 with the Securities and Exchange Commission of the Company's inability to timely file its Annual Report on Form 20-F for the year ended December 31, 2013. The audit of the Company's consolidated financial statements for the year ended December 31, 2013 has not been completed. On April 30, 2014, the Company terminated the engagement of Grant Thornton (Shanghai, PRC) ("GT") as its principal independent registered public accountants. Following the GT termination, the Company engaged Crowe Horwath (HK) CPA Limited ("CHHK") as the Company's principal independent registered public accountant to audit the Company's financial statements for the fiscal years ended December 31, 2013, 2012 and 2011, as well as to perform services related to the auditing of those financial statements. The Audit Committee and the Board of Directors voted to terminate GT's engagement and to engage a new auditing firm on April 27, 2014, and on April 30, 2014 the Audit Committee and the Board of Directors approved the engagement of CHHK. CHHK was formally engaged on May 1, 2014. The Company anticipates that the completion of the audit process and subsequent filing of the 2013 Annual Report on Form 20-F will occur within ninety days of the date of this press release. Further information regarding the above-disclosed circumstances will be provided in a Report on Form 6-K which the Company intends to file within a few days. In a related event, The Nasdaq Stock Market halted trading in the Company's securities pending the issuance by Nasdaq of information requests and Nasdaq's receipt of the Company's responses to those requests. The Company intends to cooperate fully with Nasdaq's inquiry. However, based on Nasdaq's communications with the Company, the Company does not expect trading to recommence on Nasdaq until all of the Company's periodic reports have been filed. There can be no assurance that trading will recommence or when it may recommence. Moreover, it is possible that Nasdaq may seek to delist the Company's securities based upon the Company's failure to timely file its periodic reports before the Company is able to regain compliance with its reporting requirements. If there is an extended trading halt, there is a possibility that trading could occur on the OTCBB or the pink sheets.

On May 1, 2014, the Company received a letter from the Director, Listing Qualifications, Nasdaq (the "Letter"), informing the Company that it no longer complies with the Nasdaq requirements for continued listing set forth in Nasdaq Listing Rule 5250(c)(1), which requires the timely filing of periodic reports. The non-compliance cited in the letter was the result of the Company's failure to timely file its Annual Report on Form 20-F for the year ended December 31, 2013. The Letter states in part that the Company has the opportunity to submit a plan prior to June 2, 2014 that addresses the details of the Company's plan to regain compliance with the Nasdaq Marketplace Rules. Further information regarding the Letter may be found in the Company's separate press release addressing the Letter that will be issued later this day and that is entitled "China Ceramics Announces Receipt of Nasdaq Non-Compliance Letter & Opportunity To Submit A Plan of Compliance."

JINJIANG, China, February 25, 2014 /PRNewswire/ -- China Ceramics Co., Ltd. (NASDAQ Global Market: CCCL) ("China Ceramics" or the "Company"), a leading Chinese manufacturer of ceramic tiles used for exterior siding and for interior flooring and design in residential and commercial buildings, today announced two semi-annual cash dividends of $0.0125 per share. The cash dividends will be payable on July 14, 2014 and January 14, 2015, with record dates of June 13, 2014 and December 12, 2014, respectively.

"Today's dividend announcement extends the dividend policy the Company initiated last year as a result of our continued strong competitive positioning, anticipated stable earnings and solid capitalization," said Mr. Jiadong Huang, CEO of China Ceramics. "We believe that it is important to sustain our dividend policy as a means to demonstrate transparency in our operations and cash flow as well as to reward our shareholders for their confidence in China Ceramics."

"Although our top-line results have returned to previously robust levels, the dividend amount announced this year is reduced from the level set in 2013 reflecting our ongoing attempt to recover profit margins following the business contraction that began in the fourth quarter of 2012. In addition, we believe it prudent to be well capitalized as we continue to explore investment opportunities to further enhance and grow our business. In sustaining last year's dividend policy, our objective remains to maximize value for our shareholders," concluded CEO Jiadong Huang.

JINJIANG, China, Dec. 5, 2013 /PRNewswire/ -- China Ceramics Co., Ltd. (NASDAQ Global Market: CCCL) ("China Ceramics" or the "Company"), a leading Chinese manufacturer of ceramic tiles used for exterior siding and for interior flooring and design in residential and commercial buildings, announced that the Company received a letter dated December 3, 2013 from the Nasdaq Listing Qualifications staff that it is no longer in compliance with Nasdaq's majority independent director requirement as set forth in Listing Rule 5605. However, consistent with Nasdaq's rules, Nasdaq has provided the Company with a cure period in order to regain compliance. Pursuant to the cure period, the Company will be required to appoint a new independent director to the Board prior to the earlier of its next annual shareholders' meeting or November 27, 2014. As previously announced on December 2, 2013,Paul K. Kelly resigned from the Board of Directors effective November 27, 2013. 

The Company's Board of Directors currently has six directors, three of whom are independent directors (including Cheng Davis, who the Company previously disclosed has resigned effective December 31, 2013). The Company will seek to regain compliance with the Nasdaq independent director requirement as soon as possible, but by no later than the end of the cure period.

JINJIANG, China, December 3, 2013 /PRNewswire/ -- China Ceramics Co., Ltd. (NASDAQ Global Market: CCCL) ("China Ceramics" or the "Company"), a leading Chinese manufacturer of ceramic tiles used for exterior siding and for interior flooring and design in residential and commercial buildings, today reiterated its previous announcement of a semi-annual cash dividend of $0.10 per share. The dividend will be payable on January 14, 2014 with a record date of December 13, 2013.

"The dividend payment is recognition of our corporate growth, solid capitalization and earnings record," said Mr. Jiadong Huang, CEO of China Ceramics. "We appreciate our shareholders' commitment to China Ceramics and our goal remains to maximize long-term value."

Third Quarter 2013 Highlights

• Revenue was RMB 340.7 million (US$ 55.3 million), up 53.0% from the second quarter
• Non-GAAP earnings per fully diluted share, which excludes the non-cash treatment of the asset write-down and the quarter's share-based compensation expenses, was RMB 1.16 (US $0.19) in the third quarter ended September 30, 2013, as compared to RMB 0.49 (US $0.08) in the second quarter of 2013 and RMB 3.63 (US$ 0.58) in the third quarter of 2012.

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

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

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

Business Outlook

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

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

As of September 30, 2013, the Company's backlog of orders for delivery in October and November of 2013 is approximately RMB 155.0 million (US$ 25.3 million). Under normal circumstances, the Company's backlog is an indicator of revenues in the next quarter, though it is subject to change as a result of unforeseen business conditions and events, including extended credit payment terms. The Company estimates that its sales volume of ceramic tiles in October and November of 2013 will be approximately 5.7 million square meters as compared to sales volume of 6.0 million square meters for the same period of 2012. In addition, the Company's estimate of its average selling price isRMB 27.1 per square meter of ceramic tiles for October and November 2013. This compares with its average selling price of RMB 27.2 per square meter of ceramic tiles in the third quarter of 2013 and RMB 28.2 per square meter in the fourth quarter of 2012.

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

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

Second Quarter 2013 Financial Results

• Revenue was RMB 222.7 million (US$ 36.1 million);down 49.5% from RMB 441.0 million (US$ 69.5 million) from last year.
• Gross profit was RMB 22.2 million (US$ 3.6 million); down 82.7% from RMB 128.6 million (US$ 20.3 million)
• Earnings per fully diluted share were RMB 0.47 (US$ 0.08) vs. last years RMB 4.21 (US$ 0.66).

"We are pleased to report improved financial performance for the second quarter consistent with our expectation of a rebound in the market environment for real estate and construction. The second quarter saw improved sales volume of our ceramic tiles and a rising average selling price relative to the first quarter which resulted in stronger sequential revenue and net earnings. However, business activity is still significantly slower relative to the year-ago comparable quarter. For the remainder of 2013, we see room for a further return to the more normalized market environment of a year ago and continued strengthened financial results for the company as the recovery in our sector's fundamentals develops additional traction," said Mr. Jiadong Huang, CEO of China Ceramics.

"While the market environment has been challenging, we will continue to innovate and offer a superior product mix to our customers so as to sustain our competitive advantage. With our upgraded and modern facilities, we have the capability to operate efficiently and produce new lines of innovative and high performing ceramic tiles. Further, with our pricing now pointing back towards higher, historical levels, we can now strive to optimize our product mix to spur strategic sales of our better performing products and improve our margins. We continue to be well positioned in our industry and believe that our exceptional name-brand recognition and state-of-the art plants well positions us for a further turnaround in the market."

"In the second quarter, we maintained a reduced utilization of existing operating plant capacity based on the market environment in order to keep our operating costs low. We are currently utilizing plant production facilities capable of producing 28 million square meters of ceramic tiles per year out of our total annual production capacity of 72 million square meters of ceramic tiles. We will bring additional capacity online as the market environment dictates. In addition to the improved market environment, we believe that our close relationships with our customers account for our volume and pricing increases in the second quarter and that our marketing expertise will enable us to continue to penetrate Tier II and Tier III markets to generate stronger results in the quarters ahead," concluded Mr. Jiadong Huang.

Business Outlook

In the second quarter of 2013, the Company experienced a pick-up in its business activity as the improved market environment that we anticipated began to take hold. The Company's sales volume was 8.3 million square meters of ceramic tiles in the second quarter of 2013, an increase of 36.2% as compared to the first quarter, and the Company's average selling price in the second quarter rose 9.4% relative to the first quarter. In the Company's view, these key metrics represent a potential inflection point from lows experienced in the first quarter of 2013 and a reversal of the downward trend that had occurred beginning in the third quarter of 2012.

Based upon our improved level of business activity, China's construction and real estate sectors are showing signs of a further recovery from the effects of the slowdown that impacted the Company's financial results in the fourth quarter of 2012 and in the first quarter of 2013 when the Company lowered its average selling price in order to meet competitors' sharp discounting and retain market share. As indicated, the Company's sales volume was 8.3 million square meters of ceramic tiles in the second quarter of 2013, and the Company estimates that its sales volume of ceramic tiles in July and August of 2013 will be approximately 8.8 million square meters. In addition, the Company's estimate of its average selling price of RMB 27.3 per square meter of ceramic tiles for July and August 2013 represents a 2.2% increase from its average selling price of RMB 26.7 per square meter of ceramic tiles in the second quarter of 2013.

As of June 30, 2013, The Company's backlog of orders for delivery in July and August of 2013 is approximately RMB 240.43 million (US$ 39.2 million), or 82.1% of the approximately RMB 292.78 million (US$ 47.7 million) of backlog of orders for delivery for the same period of 2012, Under normal circumstances, the Company's backlog is an indicator of revenues in the next quarter, though it is subject to change as a result of unforeseen business conditions and events, including extended credit payment terms.

The Company believes that uncertainty as to Chinese government policy relative to speculative buying of real estate contributed to a general slowdown in the China construction sector. Previous government regulations to limit speculation especially in Tier I cities have included limiting home purchases, narrowing credit to developers and tightening down on payment requirements. However, recent signals portend an improved real estate sector with new construction levels reported to be within reasonable levels as deemed by the government. Further, inventory levels are reported to be leveling off in the major cities which could spur construction starts during the second half of 2013. Finally, government support for an increase in both affordable and senior housing should also generate opportunities for real estate development companies.

In terms of the construction sector's long-term fundamentals, we believe that China's urbanization and demographic trends are a long-term phenomenon that will stimulate the building of new residential properties in China. The Company has been able to weather the difficult market conditions and slowing demand by shifting its sales emphasis among its wide range of product offerings. Further, we believe that the Company's ability to augment its product mix from its research and development program afford it a sustainable competitive advantage. China Ceramics' new plant facilities offer new design and production capabilities that have sustained its marketing edge as well as the ability to market new and creative building materials solutions to its customers.

JINJIANG, Fujian Province, China, June 10, 2013 /PRNewswire/ -- China Ceramics Co., Ltd. (NASDAQ Global Market: CCCL) ("China Ceramics" or the "Company"), a leading Chinese manufacturer of ceramic tiles used for exterior siding and for interior flooring and design in residential and commercial buildings, today announced its first semi-annual cash dividend payment to its shareholders of$0.10 per share. The first announced cash dividend will be payable on July 15, 2013 to shareholders of record on June 13, 2013. The second announced cash dividend with be payable on January 13, 2014 to shareholders of record on December 13, 2013.  The Company's Board of Directors had previously authorized the two semi-annual cash dividends on all issued and outstanding shares of common stock.

"Our cash dividend is recognition of our positive cash flow outlook despite challenging conditions in our building materials sector during the first half of 2013 versus the same time last year," said Mr. Jiadong Huang, CEO of China Ceramics.  "The dividend payment is an expression of our confidence in the positive outlook for the Company's business prospects in the coming months and a signal to the market of our continued growth."

First Quarter 2013 Financial Results

• Revenue for the first quarter ended March 31, 2013 was RMB 149.2 million (US$ 24.0 million), down 59.9% from RMB 372.3 million (US$ 59.1 million) for the first quarter ended March 31, 2012
• Gross profit for the first quarter ended March 31, 2013 was RMB 5.1 million (US$ 0.8 million), down 95.5% from RMB 113.0 million (US$ 18.0 million) for the first quarter ended March 31, 2012. 
• Net loss for the first quarter ended March 31, 2013 was RMB 5.4 million (US$ 0.9 million), as compared to a net profit of 71.7 million (US$ 11.4 million) in the comparable period of 2012.
• Non-GAAP loss per fully diluted share, which excludes share-based compensation expenses, was RMB 0.23 (US$0.04) in the first quarter ended March 31, 2013, as compared to RMB 3.59 (US$ 0.57) of non-GAAP earnings per fully diluted share in the same period of 2012.

"We recorded lower than expected financial results for the first quarter of 2013 due to continued challenging market conditions in China's real estate and construction markets. These conditions resulted in a decrease in the sales volume and average selling price of our ceramic tile products for the quarter," said Mr. Jiadong Huang, CEO of China Ceramics.

"The intensified price competition that has occurred in our sector caused us to reduce the price of our products to retain market share beginning in the fourth quarter of 2012. While our pricing has begun to improve, our strategy to reduce prices on some of our products continued to affect our financial results in the first quarter. Though we were able to generate positive cash flow, this pricing strategy to retain our market position caused a decline in revenue and gross margin which resulted in a net loss for the quarter. Given that our financial results were due to a general contraction in our sector, we believe that we have retained our competitive positioning and are well poised for a turnaround in the market."

"In order to further adjust to current market conditions and reduce operating costs, we shut down additional plant capacity in the first quarter. We are currently utilizing production facilities capable of producing 20 million square meters per year, a decrease from the total annual production capacity of 56 million square meters utilized in the fourth quarter of 2012. We will continue to monitor the macroeconomic environment for signs of an inflection point and we are confident that our modern and efficient production capacity will enable us to generate superior performance once conditions improve."

"We believe that China's urbanization and demographic trends are a long-term phenomenon that will stimulate further construction in China's cities, and real estate development continues to be is a cornerstone of China's growth. We are confident that this will lead to a return to a more normalized market environment and that these fundamentals will generate a substantial demand for our products. We plan upon capitalizing upon a rebound in what we believe is a temporary market trough and believe that our branding and market presence will enable us to generate sound financial results once the building materials sector recovers," CEO Jiadong Huang concluded.

Business Outlook

In the first quarter of 2013, the Company experienced a contraction in both its sales volume and average selling price compared to the first quarter of 2012. This was attributable to the effects of a slowdown in China's construction and real estate sectors that impacted the Company's fourth quarter 2012 financial results and was still present in the first quarter of 2013. The Company's sales volume was 6.1 million square meters of ceramic tiles in the first quarter of 2013, a decrease of 47.9% as compared to the year-ago quarter, and the Company's average selling price in the first quarter of 2013 was RMB 24.4 (per square meter of ceramic tiles), a decrease of 23.3% as compared to the year-ago quarter.

As stated in our fourth quarter and fiscal year-end 2012 earnings press release, we experienced an increase in our average selling price in February and March from the lows that occurred in the December to January time frame, where we reduced our average selling price in order to meet competitors' sharp discounting and retain market share. We note that since the Company does not record its sales until shipment, typically 90 days after the order date, there is a lag between the time that its products ship and the effect that an improved average selling price has on its financial statements. Based on the Company's backlog of orders and its estimate of sales volume for April and May 2013, the Company's average selling price of RMB 26.3 for April and May 2013 shows a 7.8% increase from its average selling price of RMB 24.4 (per square meter of ceramic tiles) in the first quarter of 2013.

Fourth Quarter 2012 Financial Results

• Revenue was RMB 245.3 million (US$ 40.0 million), down 39.3% from the fourth quarter of 2011;
• Gross profit was RMB 29.3 million (US$ 4.9 million), down 79.0% from the fourth quarter of 2011;
• Net profit for the fourth quarter ended December 31, 2012 was RMB 13.3 million (US$ 2.3 million), down 85.6% from RMB 92.2 million (US$ 14.5 million) in the comparable period of 2011.
• Earnings per fully diluted share were RMB 0.65 (US$ 0.11) for the fourth quarter ended December 31, 2012, down 85.6% from RMB 4.51 (US$ 0.71) over the same period in 2011.
• Non-GAAP profit before taxation, which excludes share-based compensation expenses, was RMB 19.9 million(US$ 3.4 million) in the fourth quarter ended December 31, 2012, down 84.8% from RMB 130.8 million (US$ 20.6 million) in 2011.
• Non-GAAP net profit, which excludes share-based compensation expenses, was RMB 14.6 million (US$ 2.5 million) in the fourth quarter ended December 31, 2012, a decrease of 85.0% from RMB 97.5 million (US$ 15.3 million) in the fourth quarter of 2011.

"We recorded disappointing financial results for the fourth quarter of the year due to continued challenging market conditions in China's real estate and construction markets. These conditions resulted in significant decrease in the sales volume of our ceramic tile products for the quarter. We also experienced a decline in our average selling price in the quarter due to intensified price competition in our sector that caused us to reduce the price of our products to retain market share," said Mr. Jiadong Huang, CEO of China Ceramics.

"Despite the quarter's results, we believe that the operating fundamentals of our business are sound. In order to adjust to current market conditions and reduce operating costs, we shut down some plant capacity during the fourth quarter. We are currently utilizing production facilities capable of producing 46 million square meters per year out of a total annual productive capacity of 72 million square meters. We will continue to monitor the macroeconomic environment and act prudently in terms of utilizing our full production capacity. We are cautiously optimistic about an increase in demand and a rebound in pricing beginning in the second quarter of 2013 that would enable us to increase the utilization of our new and modern production capabilities."

"We will continue to enhance our ceramic tile product offerings and competitive profile in order to reach more customers in China and abroad. We continue to be strategically positioned as a producer of high-end ceramic tiles that are becoming standard in many new construction and development projects. We are confident that our modern technologies and cost efficiencies will enable us to adapt to the operating pressures of today's challenging market environment and successfully execute upon our long-term strategy, which is to be a market leader in producing specialized building materials products," Mr. Huang continued.

"The urbanization and demographic trends in China are a long-term phenomenon that will lead to future demand for our products as current real estate fluctuations moderate over time. Even as we adopt measures in the short-term to enable us to reach our customers more effectively, we are confident that the branding and market positioning that enabled us to become a premier ceramic tile producer will generate sound financial metrics once the building materials sector returns to more normalized conditions," CEO Jiadong Huang concluded.

Business Outlook

As a result of the slowdown in China's construction and real estate sectors, in the fourth quarter of 2012, the Company experienced a contraction in both its sales volume and average selling price related to both the comparable year-ago quarter and sequentially from the third quarter of 2012. The Company's sales volume (the amount of square meters of ceramic tile sold) decreased 29.8% in the fourth quarter relative to the comparable year-ago quarter and 28.7% from the third quarter of 2012. In addition, the average selling price of the Company's ceramic tiles decreased 13.7% in the fourth quarter relative to the comparable year-ago quarter and 2.5% from the third quarter of 2012. In the third quarter of 2012, the Company was able to largely offset a decline in its sales volume through an improved average selling price due to its customers' migration to higher margin ceramic tiles. However, due to the sluggish construction sector and intensified competition, the Company enacted a temporary strategy to reduce the average selling price of its ceramic tile products in the fourth quarter in order to hold its market position.

JINJIANG, China, September 12, 2012 /PRNewswire/ -- China Ceramics Co., Ltd. (NASDAQ Global Market: CCCL, CCCLW, CCCLU) ("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 it was experiencing a reduction in its backlog that it anticipated would result in a decline in revenues in the fourth quarter of 2012 by approximately 20%-40% from the fourth quarter of the prior year.

The Company believes that the reduction in its backlog has to do with a general slowdown in the construction industry in China, as customers are deferring orders and/or are waiting to start new projects. Some of the Company's customers may be delaying projects to see if the government will adopt new policies to aid the construction industry.

To mitigate the effects of slowing demand, the Company will maintain its currently wide range of product offerings and augment it with new products from its research and development program, which has the potential to result in products that realize higher margins.

In addition, the Company plans to expand its distribution network and heighten its direct sales efforts to large developers. The Company will continue to focus on Tier II and Tier III cities where it believes conditions are generally more stable relative to more volatile Tier I cities.

Second Quarter 2012 Results

• Revenue was RMB 441.0 million (US$ 69.5 million), up 18.5% from the second quarter of 2011;
• Gross profit was RMB 128.6 million (US$ 20.3 million), up 13.4% from the second quarter of 2011;
• Gross profit margin was 29.2%, down 130 basis points from the second quarter of 2011;
• Net profit was RMB 86.1 million (US$ 13.6 million), up 18.9% from the second quarter of 2011;
• On a quarter-to-quarter sequential basis, revenue was up 18.5%, gross profit was up 13.8% and net profit was up 20.1%.
• Non-GAAP net profit, which excludes the current quarter's share-based compensation expenses, was RMB 87.4 million (US$ 13.8 million), up 16.8% from RMB 74.8 million (US$ 11.5 million) in the second quarter of 2011;
• Non-GAAP earnings per fully diluted share, which excludes share-based compensation expenses, was RMB 4.28 (US$ 0.67) in the second quarter ended June 30, 2012, up 4.4% from RMB 4.10 (US$ 0.63) in the same period of 2011.

"We are pleasewhich excludes share-based compensation expenses, was RMB 4.28 (US$ 0.67) in the second quarter ended June 30, 2012, up 4.4% from RMB 4.10 (US$ 0.63) in the same period of 2011.d to report solid second quarter financial performance, especially in light of the currently challenging domestic market environment. The quarter's results were driven by higher margin ceramic tile products manufactured with the capabilities from our capacity plant expansion and reasonably sound sales volume," said Mr. Jiadong Huang, CEO of China Ceramics. "Our annual production capacity of ceramic tiles is currently 72 million square meters, out of which we are utilizing production facilities capable of producing 56 million square meters per year. With the power now on at our Hengdali facility, we will continue to monitor the macroeconomic environment to determine when it would be prudent to bring online additional production capacity as business conditions dictate."

CEO Mr. Huang continued, "While the market environment has been challenging, we will continue to innovate and offer the best product mix to our customers relative to the market so as to sustain our competitive advantage. With our new modern facilities, we have the ability to operate efficiently and at a high level of utilization. Going forward, we anticipate that our ability to understand our customers and their needs will enable us penetrate the Tier II and Tier III markets further and to generate continued positive results."

Business Outlook

China Ceramics generated solid year-to-year operating results in the second quarter of 2012 attributable to a continued improvement in its product mix as the Company's business continues to transition from lower margin tiles products to higher margin, more advanced and better performing ceramic tiles. The products being produced at its Hengdali facility, in particular, enabled China Ceramics to increase its average selling prices by 19.9% in the second quarter relative to the comparable year-ago quarter following similar year-ago comparisons in the previous two quarters. An improved product mix led to solid revenue and earnings growth and cash flow generation in the second quarter, though at a somewhat less robust rate than occurred in previous same period year-to-year comparisons. As indicated, the Company's financial results in future periods may not improve at the same rate as in past periods due to the Company's rapid facility expansion in the last couple of years. Further, the slowing economy in China is likely to have an adverse effect on the demand for the Company's products.

In the second quarter of 2012, the Company's sales volume (the amount of square meters of ceramic tile sold) fell by 1.2%, which the Company attributes to a slowdown in construction activity and real estate development in China. This follows only a modest increase in sales volume of 2.5% in the first quarter of 2012. The Company anticipates that a possible slowing of its sales volume could continue in 2012 caused by the overall slowing in economic conditions in China. The sales volume in the second quarter of 2012 represented a 15.8% increase from that of the first quarter of 2012, which is attributable to the seasonality of the Company's business, consistent with the trend of past years. The current utilization of the Company's two plant facilities based on the production capacity divided by the amount of "on-line" production capacity (56 million square meters annually) is currently 96.3%, which is indicative of the efficiency of production capacity currently in use.

The Company's backlog of orders for delivery in the third quarter of 2012 is approximately RMB 385.9 million (US$ 60.7 million), representing a year-over-year decrease of 5.2% compared to the third quarter of 2011. This year-over-year comparison is significantly changed from that of previous quarters reflecting the impact of weaker customer demand. The Company estimates that its sales volume of ceramic tiles in the third quarter of 2012 will be approximately 12.2 million square meters.

Given the slowdown in domestic demand, the Company believes it unlikely that it will bring online the unused production capacity at its Hengdali facility until macroeconomic conditions change, and that its annual production capacity will remain at its current level of 56 million square meters of ceramic tiles for the remainder of 2012.

To mitigate the effects of slowing demand, the Company will maintain its currently wide range of product offerings and augment it with new products from its research and development program, which has the potential to result in products that realize higher margins. The Company believes that a core competitive advantage is its ability to innovate and introduce new products into the product mix that it offers to its customers. China Ceramics' new plant facilities also offer new design and production capabilities as well as the ability to operate more efficiently.

In addition, the Company plans to expand its distribution network and heighten its direct sales efforts to large developers. The Company will continue to focus on Tier II and Tier III cities where it believes conditions are generally more stable relative to more volatile Tier I cities.

First Quarter 2012 Reuslts

• Revenue was RMB 372.3 million (US$ 59.1 million), up 20.9% from the first quarter of 2011;
• Gross profit was RMB 113.0 million (US$ 18.0 million), up 18.6% from the first quarter of 2011;
• Gross profit margin was 30.4%, down 60 basis points from the first quarter of 2011;
• Net profit was RMB 71.7 million (US$ 11.4 million), up 32.8% from the first quarter of 2011;
• On a quarter-to-quarter sequential basis, revenue was down 8.0%, gross profit was down 18.9% and net profit was down 22.2%;
• Non-GAAP net profit, which excludes share-based compensation expenses, was RMB 73.4 million (US$ 11.7 million), up 20.1% from RMB 61.1 million (US$ 9.3 million) in the first quarter of 2011;
• Non Gaap Earnings per fully diluted share were $0.57 vs. $0.51 in prior year period.

"We are pleased to report strong first quarter revenues and profits as the demand for our wide array of ceramic tile offerings drove solid sales volume to begin the year 2012," said Mr. Jiadong Huang, CEO of China Ceramics. "Our annual production capacity of ceramic tiles is currently 56 million square meters, which includes an additional four million square million meters of newly productive capacity at our Hengdali facility. As business conditions and market demand dictate, we will plan to phase in an additional 16 million square meters of capacity at Hengdali through the year which would increase our annual production capacity to 72 million square meters of ceramic tiles."

CEO Mr. Huang continued, "Our focus on Tier II and Tier III cities in China helped us to develop a leadership position in our industry as we continue to capitalize upon China's economic growth and urbanization trends. Going forward, we plan upon widening our distribution capabilities and bolstering our direct sales and marketing efforts to large property developers as a means to effectively reach the market. We are confident that our strong brand name recognition and wide spectrum of high quality ceramic tile products will help us to retain our competitive edge."

Business Outlook

China Ceramics has experienced strong year-to-year sales comparisons over the last two years due to its strong brand name, operating effectiveness and the successful execution of its capacity expansion plan. The Company's production capacity increased to 56 million square meters in 2011 from 38 million square meters in December of 2010. In 2012, the Company deems it possible that it will increase its annual capacity from its current 56 million square meters to a total of 72 million square meters of production capacity depending on the business outlook and as determined by market demand. We note that the Company's year-to-year comparisons going forward may be somewhat less than that experienced in past periods due to the Company's previously more rapid capacity expansion. However, though there is likely to be fluctuations from time to time, the Company expects to maintain strong gross margins as its customers are continuing to transition from lower margin ceramic tile products to higher margin, more advanced and better performing ceramic tiles.

While capacity has increased significantly, the utilization of capacity for the Company's facilities is currently 95.7%, which signifies continued healthy customer demand. In addition to plant capacity, the pricing of the Company's products is the other key factor in assessing revenues. The Company's average selling prices of its products has risen over time, though the effects of seasonality have resulted in somewhat flatter sequential quarter-to-quarter results.

The Company's backlog of orders for delivery in the second quarter of 2012 is approximately RMB 440.6 million (US$ 70.0 million), representing a year-over-year growth rate of 18.3% compared to the second quarter of 2011. This year-over-year growth rate is lower than that of previous quarters, reflective of the impact of somewhat slower customer demand. The Company estimates that its sales volume of ceramic tiles in the second quarter of 2012 will be approximately 12.9 million square meters.

Fourth Quarter 2011 Highlights

• Revenue was RMB 404.5 million (US$ 63.8 million), up 48.1% from the fourth quarter of 2010;
• Gross profit was RMB 139.4 million (US$ 21.9 million), up 52.3% from the fourth quarter of 2010;
• Gross profit margin was 34.5%, up 95 basis points from the fourth quarter of 2010;
• Net profit was RMB 92.2 million (US$ 14.5 million), up 52.4% from the fourth quarter of 2010;
• On a quarter-to-quarter sequential basis, revenue was down 0.6%, gross profit was up 17.0% and net profit was up 21.5%;
• Non-GAAP net profit, which excludes the current quarter's share-based compensation expenses, was RMB 97.5 million (US$ 15.3 million), up 61.2% from RMB 60.5 million (US$ 9.4 million) in the fourth quarter of 2010 (for which period there was no non-GAAP adjustment);
• Earnings per fully diluted share were RMB 4.51 (US$ 0.71).

"We are very pleased to report record operating and financial results for the fourth quarter of 2011 as well as for the full year 2011. Our fourth quarter saw nearly full utilization of our existing productive capacity, which demonstrates high customer demand that we attribute to our diverse and distinctive ceramic tile offerings. Our strong brand recognition, continued effective marketing program and backlog of orders for the first quarter of 2012 offers encouragement for the year ahead," said Mr. Jiadong Huang, CEO of China Ceramics.

"Our annual production capacity of ceramic tiles is currently 52 million square meters, consisting of 42 million square meters from our Hengda facility and 10 million square meters from our Hengdali facility. We are expecting an additional 20 million square meters of capacity at Hengdali by the second quarter of 2012, which would increase our total annual production capacity to 72 million square meters of ceramic tiles," continued Mr. Huang.

"The results of our capacity expansion plan and our year-to-year financial comparisons are strong as we continue to execute our strategic growth plan. In addition to full utilization of the Hengdali facility, we expect to experience additional growth as we improve the efficiency of our two facilities, expand our marketing reach and continue to focus on high-end, high margin ceramic tile products," concluded Mr. Huang.

Business Outlook

The Company's backlog of orders for delivery in the first quarter of 2012 is approximately RMB 372.6 million (US$ 59.2 million), representing a year-over-year growth rate of 21.0% compared to the first quarter of 2011. The Company estimates that its sales volume of ceramic tiles in the first quarter of 2012 will be approximately 11.7 million square meters.

Third Quarter 2011 Results

GeoInvesting offered follow up questions to CCCL management after the publication of the GeoTeam's On-the-Ground Due Diligence Report on China Ceramics. We will provide their response when we have received it.

In reference to CCCL's main operating subsidiary, Hengda, being in such close proximity to Tengda, a company in the same line of business and owned by the brother of CCCL's Chairman.

1. How did the Chairman and his brother, who owns Tengda, end up in the exact same business right next door to each other?
2. What if any are the added difficulties CCCL deals with in competing with Tengda given the family relations?
3. Is there a plan for one business to eventually buy the other out?
4. Given the proximity of buildings, do CCCL and the brother's business share shipping and receiving, raw materials and other inventories, production lines, warehouse space, any other assets, and administrative support?
5. If the two entities have the same business do they also have the same customers and, if so, why would a customer order from one company vs. the other?
6. Since CCCL and Tengda have the same business and quite possibly common customers, do they have the same pricing and other terms and conditions given that they operate in a highly competitive market?
7. Do CCCL and Tengda consider each other as competitors or allies?

1. Why are there two different sets of SAIC documents for the years 2008 and 2009?
2. If in fact the SAIC filings were amended for whatever reason in 08 & 09, was the SAT also amended?
3. Given that CCCL's main operating subsidiary during 2008 and 2009 is an FIE do you agree that PRC law dictates that joint inspections between the SAIC and SAT are required , using the same annual audited financial statement.
4. Will the company allow authorized parties to view SAT filings?

1. For the Jiangxi facility (Hengdali), the construction started a long time ago and is slated for completion based on the original plan. Why is there such a delay? Reference - Oct 2, 2010 F-1:
   
   "We have completed phase I of the expansion of the Hengdali facilities, giving us a current capacity of 10 million share meters, and current combined production capacity of 38 million square meters. We anticipate completing phase II of Hengdali's expansion by the end of 2010, which will increase total production at Hengdali to 24 million square meters per year. Phase III at Hengdali will add another 18 million square meters per year, bringing the total output of Hengdali and Hengda to 78.8 million square meters per year by the end of 2011."
   
   
2. What kind of renovation will CCCL give to its Hengda facility? How much will be the capital expense will be needed for this project?
3. Is there anything planned in terms of big capex beyond 2012?

1. Why did the company go public through a SPAC and not an IPO and why at such a cheap price?
2. Have any competitors expressed any interest in buying CCCL while the company's valuation is low?
3. Was the proposed going-private offer price the only reason why the company declined to go private?

1. Does the company plan on implementing a stock buyback program? If so, when?
2. Currently, the Chinese real estate market is cooling down. How can CCCL deal with the possible decrease in demand for its products?
3. Can you comment on the relationship between an apparently booming business and CCCL's low valuation? This is counterintuitive.
4. Will there be any additional dilution within the next 18 months?

"Gentlemen:

This will respond to your letter of September 26, 2011, setting forth your thoughts with regard to a potential going private transaction. In your letter, you set forth the following details regarding the transaction:

1. That the Company be taken private and consider re-listing on the Hong Kong (or another) market;

2. The Macquarie Group has proposed providing the financing for the transaction, and

3. “At a minimum,” you expect management to roll their equity into the Transaction.

The Board of Directors has considered the merits of engaging in a going private transaction and concluded that doing so would not be in the best interests of the Company or its shareholders at this time.

In addition, we understand from our largest shareholder that he is not interested in rolling his equity into such a transaction.

The Board thanks you for your interest in the Company.

Very truly yours,

/s/ Paul K. Kelly
Paul K. Kelly, Non-Executive Chairman

for the Board of Directors"

Source

Proposed Transaction:

Excerpt:

"We believe that the Board needs to actively and quickly address CCCL's current U.S. capital markets situation. We have reviewed and discussed CCCL's capital markets alternatives with financial advisors and other interested parties. We believe that the best alternative for CCCL is to execute a take private transaction (the "Transaction") and subsequently consider public re-listing opportunities on viable international exchanges, such as the Hong Kong Stock Exchange.

As noted in a recent Wall Street Journal article, other Chinese companies that trade on U.S. markets are also employing the take private strategy as a means to address the institutional issues and bias in the US markets. (See "Stung, Chinese Firms Now Look to Go Private," Dinny McMahon, September 2, 2011.) A take private transaction is the best solution for a credible Chinese company to address these issues.

We have spent significant effort and expense investigating the potential Transaction. Macquarie has proposed providing the financing for the purchase of the outstanding equity of CCCL. As you are aware, the Macquarie Group is a global Persified financial services firm with a leading market position in the Asia-Pacific region and a strong presence in selected markets around the world. The firm is a highly-respected underwriter and investor in the Hong Kong and China markets.

Please understand that we hope to work cooperatively with the Board and management to effectuate this Transaction. At a minimum, we would expect the management of CCCL to participate by rolling their equity into the Transaction. We would also expect the other founders of CHAC to seriously consider participating with us."

JINJIANG, China, May 23, 2011 /PRNewswire-Asia/ -- China Ceramics Co., Ltd. (NASDAQ Global Market: CCCL, CCCLW, CCCLU) ("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 provided a clarified capital expenditures outlook for 2011 and 2012.

Plant Expansion and Capital Expenditures – Clarification and Outlook

The Company believes that it would be helpful to investors to provide more detailed information of its plant expansion and capital expenditure plans as disclosed in its first quarter 2011 earnings press release. This represents an update from what was stated in the Company's Annual Report on Form 20-F for the year ended December 31, 2010, which was based on forecasts that were performed in 2010, and a clarification of what was stated in the Company's first quarter earnings press release. China Ceramics' capital expenditures in 2011 and 2012 are expected to be directed towards the purchase of specialized equipment for Hengda and Hengdali, the construction of new plant facilities at Hengdali and the construction of a new administrative office building adjacent to the Hengdali plant.

"We have recently decided to increase the production capacity of our Hengda and Hengdali facilities more rapidly in 2011 to capitalize upon the heightened market demand for our ceramic tiles. Our capital expenditures will be directed towards the purchase of specialized equipment as well as the construction of new plant and office facilities," said Mr. Jaidong Huang, China Ceramics' Chief Executive Officer.

"The planned expansion of our newer Hengdali facility will enable the Company to produce innovative products and will reflect state-of-the art design, machinery and system architecture. We expect that this will generate a high return on investment due to potentially premium pricing and higher margins," concluded CEO Jaidong Huang.

2011 Plant Expansion and Capital Expenditure Plans

The information contained in the first quarter 2011 earnings press release, as filed with the SEC on Form 6-K on May 13, 2011, is the Company's most recent outlook as relates to the expansion of the Company's Hengda and Hengdali facilities and its associated capital expenditures. What follows is a more detailed explanation of this outlook.

The Hengda Facility

The Company's current plan is to increase the production capacity at the Hengda facility from its current annual production capacity of 32.2 million square meters of ceramic tiles to 42 million square meters by the end of 2011. The total capital expenditures in 2011 for Hengda are estimated to be RMB 175 million ($27 million).

The projected demand for the Company's products is stronger this year than originally anticipated. Therefore, the Company's most recent expansion plans are intended to significantly increase the production capacity of the Hengda facility to meet this demand. The Company plans to replace old production lines with new, state-of-the art equipment and production processes in order to accommodate this expected higher demand. This includes a new expenditure of an estimated RMB 20 million ($3 million) for stone-breaking equipment that is integral to the efficiency of the production process. The associated capital expenditures are required to accommodate this higher demand, all of which are for additional machinery and not facility construction.

The Hengdali Facility

The Company's current plan for 2011 is to increase the production capacity at the Hengdali plant from its current annual production capacity of 10 million square meters of ceramic tiles to 30 million square meters, which is expected to occur during the third quarter. The capital expenditures associated with this expansion is expected to be RMB 195 million (US $30 million).

The projected demand for the Company's products is stronger this year than originally anticipated. Therefore, the Company has accelerated its plans to construct new facilities at the Gaoan site, including additional plant facilities and an administrative building. As the expansion of the Hengdali facility is now planned to proceed faster than originally expected, the Company intends to install additional machinery in the Hengdali facility in 2011 that was originally planned for 2012. The associated capital expenditures are required to accommodate this higher demand. The equipment will produce the Company's new premium, large-sized polished glaze products which it believes will have higher selling prices and higher margins.

In determining the amount of additional productive capacity for its allocation of capital expenditures, the Company views only machinery, not plant or administrative facilities, as a direct contributor to revenue generation, and therefore determinative of the amount of production capacity.

Of the planned capital expenditures for 2011 for this phase of expansion at Hengdali, an estimated RMB 67 million ($10.3 million) will be allocated for the construction of additional plant facilities and the construction of an administrative office building. In more recent past quarters, all of Hengdali's capital expenditures went towards the purchase of manufacturing equipment that increased the annual production capacity of ceramic tiles.

2012 Facilities Expansion and Capital Expenditure Plans

The expansion and associated capital expenditures for the Hengda facility are expected to be completed in 2011. For 2012, routine capital maintenance expenditures for Hengda are expected to be minimal.

The 2012 expansion at Hengdali is expected to provide an additional 14 million square meters of annual production capacity of ceramic tiles by the end of 2012. The capital expenditures associated with this expansion of Hengdali are expected to be approximately RMB 230 million ($35 million) for 2012. Of this amount, an estimated RMB 77 million ($11.8 million) will be allocated for the construction of new facilities which will house the new equipment and ceramic tile production lines. In 2012, the Company will be directing its equipment expenditures towards the purchase of new, state-of-the-art technology and equipment to meet the demand for its products.

Summary Plant Expansion and Capital Expenditure Outlook

The Company expects to have a total annual production capacity of approximately 86 million square meters of ceramic tiles by the end of 2012. This is an increase from the 78.8 million square meters of ceramic tiles planned for in 2010 as stated in the Company's Annual Report on Form 20-F for the year ended December 31, 2010.

The Company notes that its capacity expansion plans and capital expenditures outlook could change as a result of the dynamics of the building materials industry, the projected demand for the Company's ceramic tile products, the actual process and duration of construction, and the delivery of production equipment, among various other factors.

The Company believes that its current cash balances combined with its expected future cash flow from operations and its borrowing capacity will be sufficient to meet the capital expenditure requirements of the production capacity expansion associated with the Hengda and Hengdali facilities.

First Quarter Results:

• Revenue was RMB 307.9 million (US$ 46.8 million), up 34.4% from the first quarter of 2010;
• Gross profit was RMB 95.3 million (US$ 14.5 million), up 37.5% from the first quarter of 2010;
• Gross profit margin was 31.0%, up 80 basis points from the first quarter of 2010;
• Net profit was RMB 54.0 million (US$ 8.2 million), up 19.2% from the first quarter of 2010;
• Non-GAAP net profit, which excludes the share-based compensation expenses, was RMB 61.1 million (US$ 9.3 million), up 34.9% from RMB 45.3 million (US$ 6.6 million) in the first quarter of 2010;
• Earnings per fully diluted share were RMB 2.96 (US$ 0.45) vs. $0.65 the year before.

"We are very pleased to report strong financial results for the first quarter 2011 as they reflect the Company’s strong market positioning and the continued execution of our business plan," said Mr. Jiadong Huang, CEO of China Ceramics.  "By the end of 2011, the expansion of our Hengda and Hengdali facilities will be approximately 90% over that of its 2010 total capacity and will accommodate continued demand from Tier II and Tier III cities and help us to solidify our leadership position in the sector.  Our development of new and exciting products continues with the introduction of a new product series of polished glazed tile."

The Company's backlog of orders for delivery in the second quarter of 2011 is approximately RMB 372.7 million (US$ 56.9 million), representing a year-over-year growth rate of 36.9% compared to the second quarter of 2010. The expected sales volume in the second quarter of 2011 is approximately 13.8 million square meters, representing a 30.2% increase from 10.6 million square meters sold in the second quarter of 2010.

Total capital expenditures for the Company were approximately RMB 164.2 million (US$ 25.0 million) (of which approximately RMB 129.1 million (US$ 19.6 million) related to Hengdali) in the first quarter ended March 31, 2011.Total expenditures for the remainder of 2011 are planned to be an estimated RMB 370 million (US $57 million) (of which approximately RMB 195 million (US $30 million) will relate to Hengdali).  

After the completion of the improvements at Hengda and the completion of Phase II at Hengdali by the end of 2011, China Ceramics expects to have a total annual production capacity of approximately 72 million square meters. This is expected to be comprised of 42 million square meters of total capacity from the Hengda facility and 30 million square meters of total capacity from the Hengdali facility.

The completion of expansion at Hengdali will be postponed to the end of 2012. Capital expenditures to complete the expansion of the Hengdali facility are expected to be approximately RMB 230 million (US $35 million) in 2012, which is expected to provide an additional 14 million square meters of capacity in 2013.  No capital expenditures are expected for Hengda in 2012.

• On April 13, 2011, Paul Kelly purchased 20,000 of the Company’s shares for an aggregate purchase price of $89,020.
• On April 13, 2011, William Stulginsky purchased 5,000 of the Company’s shares for an aggregate purchase price of $22,750.
• On April 14, 2011, Paul Kelly purchased 3,984 of the Company’s shares for an aggregate purchase price of $17,848.

GeoTeam Notes:

Adjusted for 2009 one time merger costs, full yea and fourth quarter 2010 EPS decreased. Confirmed orders of $49 million for the 2011 Q1 imply that EPS will come in around $0.60--flat when compared to the same quarter in 2010. The company will be going up against some pretty strong EPS comparisons over the next couple quarters. However, the second and third calendar quarters are the peak season of the property developing industry, so CCCL's quarterly sales are usually highest from May to September. The Company has lower sales between January and March due to the cold weather and the PRC Spring Festival.

We have conducted some on the ground DD on CCCL, which contained some positive findings (although, there a few issues we need to delve deeper into). Per the conference call, the company desires to expand capacity as early as April 2011 and will not tap capital markets to meet near-term expansion plans. The company may be hurt by negative sentiment in the PRC real estate market. 2011 EPS is forecast to be minimal. We feel the stock may be able to see its P/E multiple expand to 5x 2011 EPS if investors believe the company is legit.

EPS: $0.58 vs. $0.53 est.

Fourth Quarter 2010 Highlights

• Revenue was RMB 273.1 million (US$ 42.5 million), up 24.3% from the fourth quarter of 2009;
• Gross profit was RMB 91.5 million (US$ 14.2 million), up 27.6% from the fourth quarter of 2009;
• Gross profit margin was 33.5%, compared to 32.6% in the fourth quarter of 2009;
• Net profit was RMB 60.5 million (US$ 9.4 million), up 133.5% from the fourth quarter of 2009;
• Earnings per fully diluted share were RMB 3.71(US$ 0.58) compared to RMB 3.03 (US$ 0.44) over the same period in 2009

Full Year 2010 Highlights

• Revenue was RMB 1,068.6 million (US$ 159.2 million), up 27.9% from the same period of 2009;
• Gross profit was RMB 339.0 million (US$ 50.5 million), up 33.9% from the same period of 2009;
• Gross profit margin was 31.7%, compared to 30.3% in the same period of 2009;
• Net profit was RMB 225.5 million (US$ 33.6 million), up 47.5% from the same period of 2009;
• Earnings per fully diluted share were RMB 16.96 (US$ 2.53) down from RMB 23.65 (US$3.52) in the same period of 2009.

GeoTeam® Note: Omitting one time merger costs, one would have to add at least $0.20 (maybe as $0.46) to 2009 fourth quarter and year end EPS numbers.

Business Outlook

The Company's backlog of orders for delivery in the first quarter of 2011 is approximately RMB 323.2 million (US$ 49.0 million), representing a year-over-year growth rate of 33.4% compared to the first quarter of 2010. The expected sales volume in the first quarter of 2011 is approximately 11.5 million square meters, representing a 30.7% increase from 8.8 million square meters sold in the first quarter of 2010.

 First Quarter 2010 Highlights

    -- Revenue was RMB 229.1 million (US$ 33.5 million), up 4.3% from the
       fourth quarter of 2009 and up 34.8% from the first quarter of 2009;
    -- Gross profit was RMB 69.3 million (US$ 10.1 million), down 3.3% from
       the fourth quarter of 2009 and up 50.7% from the first quarter of 2009;
    -- Gross profit margin was 30.2%, compared to 32.6% in the fourth quarter
       of 2009 and 27.1% in the first quarter of 2009;
    -- Net profit was RMB 45.3 million (US$ 6.6 million), up 74.6% from the
       fourth quarter of 2009 and up 45.2% from the first quarter of 2009

Earnings per fully diluted share were RMB 4.45 (US$ 0.65) for the first quarter of 2010, up 46.9% from RMB 3.03(US$ 0.44) in the fourth quarter of 2009, and down 18.0% from RMB 5.43 (US$ 0.79) in the same period in 2009.

"We are pleased to report solid results in a seasonally weak quarter, to begin our fiscal year 2010 on a strong note," said Mr. Jiadong Huang, Chief Executive Officer of China Ceramics. "Our growth was driven by our increased production capacity following the Gaoan plant acquisition in January, and from higher Average Selling Prices ("ASPs"), as we continued to benefit from a positive macro-economic environment in China."

The Company's backlog of orders for delivery in the second quarter was at approximately RMB 285.94 million (US$ 41.8 million), representing a year-over-year revenue growth rate of 29.1% compared to the second quarter of 2009. The expected sales volume in the second quarter 2010 is approximately 10.6 million square meters representing a 21.9% increase from 8.7 million square meters sold in the first quarter of 2010.

"Despite recent efforts by the Chinese government to tighten monetary policy and contain excessive real estate prices in the so-called Tier-1 cities such as Beijing, Shanghai, Shenzhen, and Guangzhou, the outlook for our business remains stable. Our exposure to the Tier-1 cities was approximately 9.7% of our revenue in the first quarter of 2010 and we expect any weakness in the Tier-1 cities to be offset by continued demand growth in the Tier-2 and Tier-3 cities, driven by secular urbanization trends as well as by the government's commitment to low-income housing," said Mr. Huang. "We remain committed to the expansion of our Gaoan plant and expect to expand its capacity by 14 million squared meters by the end of 2010 at a cost of approximately $20 million."

China Ceramics' nine production lines at the Jinjiang facility and three production lines at the Gaoan facility are all running at full capacity. During fiscal year 2010, the Company expects to spend approximately US$ 20 million to install four additional production lines at the Gaoan facility. During the fiscal year 2011, the Company expects to spend approximately an additional US$ 20 million to install five additional production lines. The current annual production capacity at the Jinjiang facility is 28 million square meters and 10 million square meters at the Gaoan facility. The annual production capacity at the Gaoan facility is expected to reach 42 million square meters by the end of 2011.

Mr. Huang added, "Our immediate focus for 2010 is increasing our production capacity to meet growing market demand for our products. We also expect to continue to benefit from the central government's RMB4 trillion stimulus plan and China's continued urbanization."

The Company's backlog of orders for delivery in the first quarter was at approximately RMB 242.2 million (US$ 35.5 million), representing a year-over-year revenue growth rate of 35.9% compared to the first quarter of 2009. The expected sales volume is 9.1 million square meters, which would represent a 30.1% year-over-year growth in sales volume from 7.0 million square meters sold in the comparable period of 2009.

Source: PR Newswire (April 5, 2010)

On August 7, 2009 China Holdings Acquisition Corp. entered into a definitive share purchase agreement to acquire a Leading Chinese Construction Materials Company, Jinjiang Hengda Ceramics Co., Ltd.

Hengda is a leading Chinese manufacturer of ceramic tiles used for exterior siding and for interior flooring and design in residential and commercial buildings.

Possible arbitrage strategy if shareholders approve the proposed business combination:

Data to be considered:

• Current Price of Common Stock: $9.71
• Current Price of Warrants: $0.50
• Strike price of Warrants: $7.50
• Implied intrinsic value of warrants: $9.71 - $7.50= $2.21

Strategy

• Buy the warrants at current price of $0.50.
• If the business combination is completed and the warrants become exercisable then the warrants should approach the implied value.
• Profit = (New Value of Warrant, Properly Priced) minus $0.50.

We also took positions in the CAEL warrants, HLD warrants ($0.27)  and CLA warrants ($0.75), which also present similar opportunities.  Secure America Acquisition Corp (NYSE Amex:HLD) and Capitol Acquisition Corp (NYSE Amex:CLA) are slated to vote on business combination deals next week.

Recent successful warrant arbitrage plays:

China Mediaexpress Holdings In (NYSE AMEX:TMI.WS)
Exceed Company Ltd. (NASDAQ:EDSWW)
Ideation Acquisition Corp (NYSE AMEX:IDI.WS)
Autochina International Limited (NASDAQ:AUTCW)

The GeoTeam® still needs to dig into the filings for any potential caveats that often exist.  Please be aware that in an effort to complete SPAC deals, revisions that are sometimes made to the original agreements may negatively effect the value of related warrants.  This situation actually occurred with with Interamerican Acquisition Grou (OTC BB:IAQG) and its warrants

The GeoTeam is analyzing the make good assumptions tied to the acquisition agreement with Bright World.  More details will be available shortly.

Source: PR Newswire (July 21, 2008)

HOL has agreed to acquire Bright World Precision Machinery Limited.  Bright World is an established Chinese manufacturer of conventional and high-performance metal stamping machines that serves industrial companies in rapidly growing manufacturing sectors -- automotive, home electrical appliances and computer and telecommunications -- that cater to China's expanding consumer middle class. Bright World shares have been listed on the Singapore Exchange Securities Trading Limited since April 27, 2006.

Source: PR Newswire (July 21, 2008)