China Ceramics Co., Ltd. has announced that revenue for the second quarter ended June 30 increased by 18.9% to RMB 272.3 million (approximately $39.8 million) compared to the first quarter ended March 31, and increased by 29.5% compared to the 2009 second quarter. The sequential increase in revenue was driven primarily by higher sales volume. The year-over-year increase in revenue was mostly driven by a 21.8% increase in volume from 8.7 million square meters to 10.6 million square meters in the second quarter of 2010, as well as a 5.9% increase in average selling prices as a result of price increases in the second half of 2009. The growth in volume was mainly due to production capacity contributed by the Gaoan plant acquisition in January; the facility accounted for 26.7% of production volume in the quarter. In addition, outsourced manufacturing accounted for 18.3% of production volume in the quarter.
Gross profit was RMB 84.8 million (~ $12.4 million) in the 2010 second quarter, up 22.4% from RMB 69.3 million (~ ?) in the 2010 first quarter and up 40.6% from RMB 60.3 million (~ $8.869 million) for the 2009 second quarter. Gross margin was 31.2% compared to 30.2% in the first quarter of 2010 and 28.7% for the same period last year. The sequential increase in gross profit was driven by the increase in sales volume, and the year-over-year increase in gross profit was mostly driven by the increase in sales volume and average selling prices.
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