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China Ceramics Completes New Production Line for Glazed Brick Ceramic Tiles

China Ceramics Co., Ltd., a leading Chinese manufacturer of ceramic tiles used for exterior siding and for interior flooring and design in residential and commercial buildings, today announced that it has completed a new production line to manufacture glazed brick ceramic tiles in its Hengdali facility in Gaoan, Jiangxi Province, China.

"We are excited about the addition of glazed brick ceramic tiles to our product portfolio as it is engineered to be a highly effective and customized roofing solution for both high-rise apartment buildings and housing projects. Further, it complements our existing ceramic tile building products and provides a competitively-priced solution for property developers," said Mr. Jiadong Huang, Chief Executive Officer of China Ceramics. "Once in production, we believe that this new product will be one of the highest quality roofing bricks available in the building materials market and we are pleased that it further broadens our already extensive product line."

The new production line is optimized to manufacture customized size ranges of glazed brick ceramic tiles in a manner that maximizes production efficiency and output. It also increases the Company's total number of production lines from sixteen to seventeen. The new production line will undergo extensive testing procedures in the current quarter and full production is expected to begin in the second quarter of 2016.

Although there are currently some pre-orders for glazed brick ceramic tiles, we do not expect sales to ramp until the second quarter of 2016. We have incurred capital expenditures of RMB 93.0 million (US$ 14.6 million) to date in connection with the new production line, although additional expenditures are possible prior to the production line being fully operational. The new glazed brick ceramic tiles will be sold alongside our existing ceramic tile products to property developers on a direct basis and by our network of distributors throughout China.

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