China Ceramics Co. Ltd., a leading Chinese manufacturer of ceramic tiles for exterior siding and interior flooring and design for residential and commercial buildings, today posted its first quarter financial results for three months ended March 31, 2010.
Revenue for the first quarter of 2010 increased by 34.8 percent to RMB 229.1 million (US$ 33.5 million) compared to the first quarter ended March 31, 2009. The company attributes the improvement to a 26.3 percent increase in volume and a 6.6 percent increase in average selling price driven by higher sales volume.
Gross profit was RMB 69.3 million (US$ 10.1 million), a 50.7 percent increase from the three months ended March 31, 2009. China Ceramics reported gross margin at 30.2 percent compared to 27.1 percent for the same period last year.
Jiadong Huang, CEO of China Ceramics, said the strong results contradict what is usually a weaker reporting period, leveraged by acquisition and selling prices.
“We are pleased to report solid results in a seasonally weak quarter, to begin our fiscal year 2010 on a strong note,” Huang stated in the press release. “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 reported net profit for the first quarter at RMB 45.3 million (US$ 6.6 million), up 45.2 percent from the comparable period in 2009. The company attributes the increase to strong growth in revenue and by management’s ability to limit growth in cost of sales.
China Ceramics also noted recent developments, including the addition of two new distributors in Jiangxi Province, which expands the company’s network to 37 exclusive distributors across China.