China Ceramics Co. Ltd., formerly China Holdings Acquisition Corp., is a leading manufacturer of ceramic tiles in China. The company recently posted its preliminary unaudited financial results for the fourth quarter and year ended December 31, 2009, reporting strong results across the board.
Net revenue for the fourth quarter was RMB 231.5 million (US$ 33.9 million), up 25.3 percent from the fourth quarter of 2008; gross profit was RMB 83.4 million (US$ 12.2 million), up 57.3 percent from the fourth quarter of 2008; gross profit margin was 36.0 percent compared to 28.7 percent in the fourth quarter of 2008;
Full year 2009 net revenue was RMB 880.1 million (US$ 128.7 million), an increase of 13.3 percent from 2008; gross profit was RMB 297.6 million (US$ 43.5 million), an increase of 22.3 percent from 2008; gross profit margin was 33.8 percent compared to 31.3% in 2008.
Jiadong Huang, CEO of China Ceramics, attributed the company’s positive results to healthy product demand.
“We are pleased to report another strong quarter that exceeds our revenue and net income guidance for the full year,” Huang stated in the press release. “Our rapid growth was driven by our ability to increase our production volume to meet continued robust market demand. The majority of our revenues come from the domestic market in China, which we believe will continue to exhibit growth in the quarters ahead.”
The company also highlighted recent 2010 developments, including its acquisition of the Gaoan facility from the Gaoan City Administration for Industry and Commerce for a payment of RMB 145 million (US$ 21.2 million) in December 2009, in addition to a final cash payment of RMB 39 million (US$ 5.7 million), and assumed debt of RMB 60 million (US$ 8.8 million) in January 2010.
China Ceramics said it anticipates allocating about RMB 27 million (US$ 4.0 million) in the first half of the year to complete the first phase of the Gaoan facility.
The company also recently inked three new exclusive distributor agreements in Hainan province, Zhejiang province and Anhui province to begin distributing the company’s products in January 2010. The company now has 35 exclusive distributors.