Half Year 2020 China Ceramics Co Ltd Earnings Call
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The first half of 2028 the impact of the covid-19 Hyundai make-or-break had a material adverse impact on demand for our products as our production was temporarily home and our religious text function will not fully operational in certain regions. I was really just remain closed through April the cover 1900 resulted in a high number of purchase order cancellations and severely with use our self as our customers help I purchase this awaiting the resumption of normal economic activities.
Hi, Jeff. I can email.
Due to the covid-19 panda make sort of six months and the June 30th 2020 will utilize production facilities capable of producing just two point six million square meters of dog house for a year. I'll talk to him and his total annual production capacity of 51.6 million square meters of Ceramics house. This is consistent with our practices in Pasco maintain an appropriate level of production capacity based on the market conditions.
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We remain focused upon Tavern in our operational capability to fuel our growth while we were connected to our Core Business reform to New Jersey in a high technology. Sector trained do future talented management and Consulting Company Limited provides business management and Consulting and has already contributed Revenue to in the first half of 2020 and the lows holding Company Limited provide some tax Solutions such as the development of blockchain software and subsequent to the end of the current six month period her sign three contracts, which we expect will contribute to revenue in the second half of 2020.
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In the long-term you believe that our building materials sector will continue to benefit from girls in the real estate sector, which is the same organization to consolidation of larger pack up to travel first and the upgrading of 816 housing stock for the remainder of twenty-twenty. We believe that the people Republic of China central government will take steps to bolster took it grows and got ten consumer demand for residential property resulting from the downturn that occurred during China's covid-19 lock down. But alternatively birth our building materials sector
Is that I would like to turn over the call to the company's Chief Financial Officer Mister who will discuss the company's first-half 20/20 earnings results in more detail.
Thank you. Mr. Paul.
I will now move on to a more detailed discussion of our financial results for the six months ending June 30th 2020.
All right. Thank you for the 6 months end June 30th 2020. What's R&B 29.8 million * 5.6 million.
A 77.6% decrease from R&B hundred seventy seven point four million for your starter 2.6 to 26.2 million.
for the same. 2019
so you over you at the Christian revenue for steel to the 73.4% decrease in our sales volume to 1.8% off child's for the six months of 2020 compared that you 6.6 million square meters of ceramic tiles for the same hope so. Imagine.
Decrease attributable to reduce the sales orders of our Porters due to the covid-19 pandemic our average selling price decrease 15.8% to RMB 22.6 or stolen 3.19 for the 6 months of 2012-13 from our MB 26.8 for a US tour 3495 for the same period of 2019.
as a result of difficult market conditions
and the countries of the 15% price reduction is in October 2019.
Most profit for the six months ended June 30th 2024 R&B not open for u.s. Dollar eighty million as compared to gross profit or and be 15.3 million or u.s. Dollar two point three million for the same favor. 2019.
The cost of the margin was 2.4% as compared the to 8.6% for the same period of 2019.
A decrease in gross profit margin for the six months ending June 30th, 2024 still to the 73.4% off in sales volume and 15.6% decrease in average selling price.
Other income for the six months ended June 30th 2020. What's R&B night for eight million or a u.s. Dollar one point four million wage compared the two there are on 1 million or you are stolen one point 1 million for the comparable period of 2019.
Although you can come primarily consists of rental income that the company received by leasing out one of these production lines from his handily fifty restaurants, too and they see at least contract.
In addition, we realize our MB 2.4 million or your starter no point three million in technology Consulting income from our newly incorporates just substituting.
Trim do future talent management and Consulting Company Limited during the six-month and June 30th 2020 dead cell in this Fisher expenses for the six months and June 30th 2020 were RMB 5.2 million, or you have to order not finding a million a decrease from our MB 5.7 million or a u.s. Dollar not 1/8 million for the comparable period of 2019.
Have you Chris Bossman due to a decrease in payroll expenses of 1 million or a decrease in advertising expenses of our MB not want to log in?
administrative expenses for the six months and true 30th 2020
R&B 14.7 million or your store the two point 1 million?
That's compared to to RMB 15.9 million or a u s. A 2.3 million.
for the same. On 2019
a decrease of was mainly due to a decrease in research and development expenses of our MB 6.4 million, which was partly offset by the following an increase in administrative expenses attributable to the company's new subsidiaries of our MB 3.5 million and increase you're not irritated feeds off our and being no point two million an increase in Consulting fins of R&B not 1 million an increase in legal fees of our F15 million and increase in other miscellaneous expenses of our being broken to medium.
best travel expenses for the six months and June 30th 2020
What's R&B 101.8 million or your store 14.4 million as compared to a bad server expense of RMB 105.9 million or your storage 28.6 million for the same period of two thousand and nineteen re recognized a loss allowance for wage loss of financial assets primarily entree visible receivables, which are subject to impairment under IFRS 9 a.m.
Financial instruments will you be there we have undertaken appropriate measures to reserve our bad debt expense. We will continue to review page of our customers for product quality as well as
That's towards the test their accounts receivable balance in each coming physical years now.
That's loss for the six months and June 30th 2020 plus R&B.
How do I get that pin point five million or yesterday 15.8 million compared to a net loss of R&B hundred ninety, three point two million or Thursday. A 28.5 million for the same period of 2019.
That the Christian not lost was mainly due to the decreasing expense which was partially offset by decreasing gross profit for the six months and June 30th.
2020
lost her basic and 45 but the sheer for the six months and June 30th. 2024 R&B. What's the point it's too for your store the 5.7 wage compared to Los or basic and $40 a share of our MB 96.69 or 14.25.
for the
same. 2019
These figures which relatively present for the 321 reverse stock split effective on September three, September 3rd, June 2020.
Turning to our balance sheets. We had a cash and be a 13.5 or 1.9 million as of June 30th 2000 Transit compare the with r and b h 1.2 million as of December 31st, 2019.
Oh you haven't return was 824 days as of June 30th 2020.
Let's compare the two two thousand two hundred seventeen days as of December 31st, 2019.
The increase in your country over this was primarily due to the 73.4% decrease in our sales volume for six months and June 30th 2020 as compared to the same period of 2019.
Kyo to the covid-19 pentamic we believe that the value of our current inventory is realizable.
Our trade receivables turnover natural value at the test was 122 days as of June 30th 2012 Impreza with a hundred ninety four days as of December 31st 2019.
Increase the entry receivables turnover was primarily.
Due to the slow connection or power trade receivables as a result of tight cash flow as reported by our customers covid-19 choice.
our trade payables Charles at the tax
What is t-90s of June 30th 2020 as compared with Thirty Days as of December 31st, 2019?
As a result of slow collection of trade receivables from our customers. We also encountered types of cash flow due to The covid-19 Condemned and delicious and payment to our vendors.
in terms of plant utilization and campus
We utilize the plans capacity capable of producing 2.6 million square meters of ceramic tiles for the six months ended June 30th, 2020 customer will be six months and June 30th 2019 when we utilize production facility capable of producing 6 million square meters.
Our retail store production utilization during the current rivets was attributable to factors associated with the covid-19 pandemic.
Our anger facility has an annual production capacity of 22.8 kilometers.
Oh sermet's house as a result of furnaces, I think being put out of use at the facility.
It's something that you can as production capacity and hang different city capable of producing 1.3 million square meters of ceramic tiles for the six months and two and thirty or 2020.
our Haines City
Richard using I was ten million square meters of production capacity to a third party and we'll utilize the production capacity of our handling facility capable of projecting one point Street median scrimmages sales for the six months ended June 30th 2020.
We revealed the last phone cable Capital expenditures survey and make adjustments subject to market conditions or the officers condition a picture change anticipates a modest.
That's all capital expenditures for the remainder of 2020. Other than those associated with minimal upgrades small repairs and maintenance package of equipment.
Moving on to our business Outlook discuss the company's operation results impacted by the covid-19 pandemic.
Our position was for most of the month of February and our logistic function not fully operational in certain regions as this Region's be main club through closest April resulted in the high number of purchase order cancellations as our customers and Thursday. So precious everything the resumption of normal economic activity.
Our sales only be beginning to slowly the rent near the end of the six months and six months. And June 30th 2020.
Looking for it now. China's real estate market has remained resilient over time.
Certain factors such as they slow domestic economy amount of your rental price wage in certain cities and possible government regulation to cool Rising property prices and demek could potentially limit new project development.
There has also been some over development which has caused.
Sorry housing inventory in certain Curiosities. If you need to work itself through sales channels there for.
The current condition of for the Construction and building materials sent you continue to be challenging.
You know that you supplement and expand our current market Ridge in 2020 be announced a plan to enter the ceramic tile wage in South East Asia.
To capitalize upon the increased level of the Region's new building construction while just climate condition may get an ideal fit for many hour.
Ceramic tiles approaches SFO was temporarily locked due to the coronal 4rom. No virus pandemic.
We have we if we deploy the distance strategy critical to diversify or business generating Revenue outside of China.
The key element of this diversification strategy is too close to the effort, you know the to expand our markets last year. We bought a new type of exterior ceramic tiles decided to cool temperatures of buildings, which one's fully tested and certified for this summer Target the same Market.
However, you'd be there in the long-term The Rustic and construction sector will continue to call and the underlying fundamentals fish including a sustained Urban station the consolidation of larger party developers and upgrading of existing housing stock the main office in Kissimmee Dreyfuss.
In addition to marketing for the domestically we plan to continue our efforts to expand outside of China and enter that ceramic tiles Market in South East Asia off to a couple of Lies upon these new building construction.
We remain focused Upon rectifying Our operational capabilities to fill our problems while we are in the $2 core business before I'm the two new subsidiaries in the high technology sector.
I'm do future talent management and Consulting, They limited computer server Consulting online problem solving to maintain computer system and the internet connectivity and overall technical support.
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Their subsidiaries has contributed modest Revenue in 2020 so far you believe that management and Consulting represent the motion sensor.
In addition reformed until not holding Chengdu, limited which provides the interest in such as the development of blockchain software. Sequence to the end of current 6 months. Yes, and the TSI the three countries which have all been publicly announced just and which will contribute to your Revenue in the second half of 2020.
Yes, this is all look reflects the company's current em, and it's based on the information currently available to us which are subject to change the subject to a risk and uncertainties as well as risk and uncertainties identify in the company's public filings.
At this point I would like to open up the call to any question pertaining to our first half 2020 Financial results.
operator please
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There are no question at this time.
Mister David Rubin, please continue
Thank you Dexter on behalf of the entire transformation management team want to thank all of you for your interest and participation on this call. This concludes trying to Ceramics first-half 20/20 on his, Thank you very much.
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