China Ceramics Co., Ltd. (NASDAQ:CCCL) Q2 2020 Earnings Conference Call - Final Transcript

Sep 29, 2020 • 08:00 am ET

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China Ceramics Co., Ltd. (NASDAQ:CCCL) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to the China Ceramics First Half 2020 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that this conference is being recorded. [Operator Instructions]

I would now like to welcome our speakers for today, Mr. David Rudnick. Please go ahead, sir.

Executive
David Rudnick

Thank you, Dexter. Good morning, ladies and gentlemen. And good evening for those of you who are joining from China. Welcome to China Ceramics first half 2020 earnings conference call. With us today are China Ceramics' Chief Executive Officer, Ms. Meishuang Huang and Chief Financial Officer, Mr. Edmund Hen.

Before turning the call over to Ms. Huang, I'd like to address forward-looking statements that may be discussed on the call. Forward-looking statements involve risks and uncertainties and include among others, those regarding revenue, operating expenses, other income and expense, taxes and future business outlook. Actual future performance outcomes and results may differ materially from those expressed in forward-looking statements. The company claims the Safe Harbor protections for such forward-looking statements as contemplated under the Private Securities Litigation Reform Act of 1995. Please refer to the documents filed by the company with the SEC. Specifically the most recent reports on Form 20-F and 6-K, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. We assume no obligation to update any forward looking statements or information, which speak as of their respective dates.

And now it's my pleasure to turn the call over to China Ceramics' CEO, Ms. Meishuang Huang and China Ceramics' CFO, Mr. Edmund Hen. Shawn Lee [Phonetic] will be translating for Ms. Huang. Ms. Huang, you may proceed.

Executive
Meishuang Huang

[Foreign Speech]

Thank you, David. On behalf of the company, I would like to welcome everyone to our first half 2020 earnings conference call.

[Foreign Speech]

For the first half of 2020, the impact of the COVID-19 pandemic outbreak had a material adverse impact on the demand for our products as our production was temporarily halted and our logistics functions were not fully operational in certain regions, as these regions remained closed through April. The COVID-19 pandemic resulted in a high number of purchase order cancellations and severely reduced our sales, as our customers held back purchases awaiting the resumption of normal economic activity.

[Foreign Speech]

Due to the COVID-19 pandemic, for the six months ended June 30, 2020 we utilized production facilities capable of producing just 2.6 million square meters of ceramic tiles per year out of an effective total annual production capacity of 51.6 million square meters of ceramic tiles. This is consistent with our practices in past quarters as we maintain an appropriate level of plant production capacity based on market conditions.

[Foreign Speech]

We remain focused upon diversifying our operational capabilities to fuel our growth. While we are committed to our core business, we formed two new subsidiaries in