JINJIANG, China, Aug. 11, 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 financial results for the first quarter ended March 31, 2014.

First Quarter 2014 Highlights

  • Revenue was RMB 208.8 million(US$ 33.6 million), up 39.9% from the first quarter of 2013
  • Gross profit was RMB 9.3 million(US$ 1.5 million), up 82.4% from the first quarter of 2013
  • Plant utilization was 39% as compared to 28% in the first quarter of 2013
  • Net loss was RMB 71.5 million(US$ 11.5 million) as compared to a net loss of RMB 5.4 millionin the first quarter of 2013
  • Net loss would have been RMB 2.8 million(US$ 0.5 million) if the foreign currency transactions had not been in place during the quarter

"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

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