JINJIANG, Fujian, China, May 17 /PRNewswire-Asia-FirstCall/ -- China Ceramics Co., Ltd. (OTC Bulletin Board: CCLTF) ("China Ceramics" or the "Company"), a leading manufacturer of ceramic tiles in China, which are used for exterior siding, interior flooring, and design in residential and commercial buildings, today announces that it has filed its Annual Report on Form 20-F for the year ended December 31, 2009.
In connection with the preparation of its financial statements for the year ended December 31, 2009, the Company determined that it had been incorrectly applying IAS 18, Revenue. Historically, the Company recorded sales rebates and discounts as selling and distribution expenses rather than as a reduction to revenue as per IAS 18. This determination has resulted in an audit adjustment in revenue for the fiscal year ended December 31, 2009 and restatement adjustments in revenue for the fiscal years ended December 31, 2007 and 2008 respectively.
The audit adjustment in revenue for the year ended December, 31 2009 resulted in a reduction in revenue from the previously announced amount of RMB 880.1 million ($128.7 million) to RMB 834.7 million ($122.2 million). Correspondingly, selling and distribution expenses was reduced from the previously announced amount of RMB 51.3 million ($7.5 million) to RMB 6.9 million ($1.0 million) in 2009. There was no adjustment to previously announced net income or earnings per share of the Company for 2009.
The restatement adjustments of revenue resulted in reduction of revenue from RMB 776.6 million ($111.5 million) to RMB 737.1 million ($105.9 million) for the year ended December, 31 2008 and from RMB 650.0 million ($85.3 million) to RMB 617.9 million ($81.1 million) for the year ended December 31, 2007 respectively. Correspondingly, selling and distribution expenses was reduced from RMB 46.0 million ($6.6 million) to RMB 6.6 million ($1.0 million) in 2008 and RMB 38.2 million ($5.0 million) to RMB 6.1 million ($0.8 million) in 2007 respectively. There was no adjustment to reported net income or earnings per share of the Company for 2008 and 2007.
Additional details are included in the Annual Report on Form 20-F filed by the Company today with the Securities and Exchange Commission.
About China Ceramics Co., Ltd.
China Ceramics Co., Ltd., formerly China Holdings Acquisition Corp., is a leading manufacturer of ceramic tiles in China. The company's ceramic tiles are used for exterior siding, interior flooring, and design in residential and commercial buildings. China Ceramics' products, sold under the Hengda or "HD" brand, are available in over 2000 styles, colors and sizes combinations and are distributed through a network of exclusive distributors or directly to large property developers.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include but are not limited to, statements regarding China Ceramics' acquisition strategies, timing of development projects and efforts to achieve business growth, improvement on profit margin and anticipated revenue growth. Actual results may differ materially depending on a number of risk factors including but not limited to, the following: general economic and business conditions, development, shipment and market acceptance of products, additional competition from existing and new competitors, changes in technology or product techniques, and various other factors beyond the Company's control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risk factors detailed in the Company's reports filed with the Securities and Exchange Commission. China Ceramics undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.
For more information, please contact:
China Ceramics Co., Ltd.
Edmund Hen, Chief Financial Officer
Email: info@hengdatile.com
CCG Investor Relations Inc.
Mr. Ed Job, CFA - Account Manager
Phone: +1-646-213-1914
Email: ed.job@ccgir.com
Mr. Crocker Coulson, President
Phone: +1-646-213-1915
Web: http://www.ccgirasia.com