Leading Chinese ceramic tiles manufacturer, China Ceramics Co. Ltd., today posted its unaudited third-quarter financial results for Success Winner Limited, its BVI-located subsidiary. The results are prior to China Ceramics’ acquisition of Success Winner in November 2009.
For the third quarter ended September 30, 2009, Success Winner reports a 15.8 percent increase in revenue, attributed to a 16.4 percent increase in square meters of ceramic tiles sold in the third quarter of 2009 as compared to the third quarter of 2008. Revenue for the nine months ended September 30, 2009, increased nearly 9.6 percent from the same period in 2008, while sales volume in square meters increased 15.7 percent.
Success Winner said profit for the third quarter increased 19.0 percent compared to the third quarter ended September 30, 2008, driven by the 15.8 percent growth in revenue. Additionally, the company was able to control the growth in cost of sales to only 7.2 percent, compared to the third quarter of 2008, resulting in a 35.5 percent increase in gross profit in the third quarter 2009 compared to the same quarter in 2008. Profit for the nine months ended September 30, 2009, decreased by 2.8 percent from the equivalent period in 2008, due primarily from the a 12.6 percent increase in gross profit and a 125.7 percent increase in income tax expense during the nine-month period of 2009.
As of September 30, 2009, Success Winner had cash and cash equivalents of RMB162.3 million compared with RMB93.2 million as of June 30, 2009. The company said this increase was primarily due to an increase in the cash generated from solid summer and fall sales.
The company also gave an outlook for the fourth quarter of 2009, expecting sales volume for the quarter ended December 31, 2009, at 8.7 mm square meters, representing a 20.8 percent year-over-year growth in sales volume, up from 7.2 mm square meters for the fourth quarter of 2008.