China Ceramics announced financial results for the first quarter ended March 31, 2015. Revenue was RMB 209.8 million ($33.8 million), an increase of 0.5% from RMB 208.8 million for the first quarter ended March 31, 2014.
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The modest quarter-over-quarter increase in revenue was primarily due to a 6.4% increase in average selling price to RMB 29.8 ($4.81) in the first quarter of 2015 from the year-ago quarter, partially offset by a 5.7% decrease in sales volume to 7.0 million square meters from the year-ago quarter.
Gross profit for the first quarter ended March 31, 2015 was RMB 13.8 million ($2.2 million), an increase of 48.7% from RMB 9.3 million for the first quarter of 2014.
The gross profit margin was 6.6% for the first quarter ended March 31, 2015 as compared to a gross profit margin of 4.4% for the first quarter of 2014. The year-over-year change in gross profit margin was primarily driven by the 6.4% increase in average selling price which drove revenue gains as well as a moderate decline in the cost of sales.
Realized and unrealized fair value gain on derivative financial instruments for the first quarter ended March 31, 2015 was nil, as compared to a loss of RMB 68.7 million for the first quarter of 2014.
During the second quarter of 2013 and the first quarter of 2014, the company entered into certain foreign currency transaction agreements with Taishin International Bank for investment purposes.
In July 2014, company chief executive officer (who is also the company's largest shareholder) and an affiliate of the chief executive officer agreed to assume these agreements.
As a result, after July 31, 2014 the company were no longer required to fund any losses related to these agreements and neither suffered any future liabilities arising under those agreements nor realized any benefits arising under those agreements.
Profit from operations before taxation for the first quarter ended March 31, 2015 was RMB 4.3 million ($0.7 million), as compared to a loss from operations before taxation of RMB 71.2 million for the first quarter of 2014.
Excluding the non-cash RMB 68.7 million fair value loss on derivative financial instruments incurred in the first quarter of 2014, the year-ago quarter's loss from operations before taxation was RMB 2.5 million.
Net profit for the first quarter ended March 31, 2015 was RMB 2.8 million ($0.4 million), as compared to a net loss of RMB 71.5 million for the first quarter of 2014.
Excluding the non-cash RMB 68.7 million fair value loss on derivative financial instruments incurred in the first quarter of 2014, the year-ago quarter's net loss was RMB 2.8 million.
Earnings per fully diluted share for the first quarter ended March 31, 2015 were RMB 0.14 (US $0.02), as compared to a loss per fully diluted share of RMB 3.50 for the first quarter of 2014.
Excluding the non-cash RMB 68.7 million fair value loss on derivative financial instruments incurred in the first quarter of 2014, the year-ago quarter's loss per fully diluted share was RMB 0.14. Per share calculations for the first quarters of 2015 and 2014 were computed using 20.4 million shares outstanding. ■