Good morning my name is Melissa and I will be your conference operator today. At this time, I would like to welcome everyone to the China Ceramics Fourth Quarter and Fiscal Year End 2012 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks there will be a question-and-answer session. (Operator Instructions) I would now turn the call over to David Rudnick of CCG Investor Relations. You may begin your conference.

Thank you, Melissa. Good morning ladies and gentlemen, and good evening to those of you who are joining us from China. Welcome to China Ceramics fourth quarter and fiscal year end 2012 earnings conference call. With us today are China Ceramics’, Chairman and Chief Executive Officer, Jia Dong Huang and the Chief Financial Officer, Mr. Edmund Hen. Before I turn the call over to Mr. Huang, I remind all listeners that during this call management’s prepared remarks contains forward-looking statements which are subject to risk and uncertainties and management may make additional forward-looking statements in response to your questions. Therefore the company claims protection of the Safe Harbor for forward-looking statements that’s contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from those discussed today and we refer you to a more detailed discussion of the risk and uncertainties with company’s filings with the Securities and Exchange Commission. In addition, any projections as the company’s future performance represents management’s estimates as of today, April 24, 2013. China Ceramics assumes no obligation to update these projections in the future as market conditions changed. To supplement its financial results presented in accordance with IFRS, management may make reference to certain non-GAAP financial measures which the company believes provide meaningful additional information to understand the company’s performance. The statement reconciling any non-GAAP measures to nearest GAAP equivalents can be found on the earnings press release earlier today. And now, it’s my pleasure to turn the call over to China Ceramics Chairman and CEO, Mr. Jia Dong Huang; and China Ceramics CFO, Mr. Edmund Hen. CCG’s Mabel Zhang who will be translating for Mr. Huang. Mr. Huang, you may proceed.

Thank you, David. On behalf of the company I would like to welcome everyone to our fourth quarter and fiscal year end 2012 earnings conference call. We are pleased to report record strong financial results for the full-year 2012 and despite a challenging marketing environment that has progressed in our structure over the last 6 months of the year. We were able to generate CD revenues for the full-year 2012 in profitability which is relative to 2011. And we have communicated through the market last year. We expected that the general slowdown of the construction industry in China will have a negative impact on our revenues in the fourth quarter. In the fourth quarter of 2012, we see a substantial decrease in the sales volume of ceramic tiles relative to the fourth quarter of 2011. Our average selling price also fueled in the quarter from the year ago, first quarter due to intensified pricing competition in our sector. Despite the fourth quarter it’s a disappointing result, we believe that operating fundamentals of our business are sound. We are cautiously optimistic about an improved outlook in the second quarter of 2013 with a pick-up in product demand and a rebound in pricing. In order to adjust to the current market conditions and reduced operating costs, (inaudible) capacity during the fourth quarter. We are currently utilizing production facilities capable of producing 46 million square meters per year about a total annual productivity – productive capability of 70 million square meters. We will continue to monitor the macroeconomic environment and that was prudent in terms of utilizing our full production capacity. We applied this cost to our ceramic tile product in the fourth quarter in order to compete head-on, with competitors and retain our customers and market share. Although the average of selling price for our ceramic tiles in the first quarter declined 13.8% from the year ago quarter. We anticipate return to a more normalized pricing environment, whereas the business conditions in our building material sector improved. We are confident that urbanization and demographic trends in China are a long-term phenomenon that will lead to raising future demands for our products as current real estate fluctuations moderate over time. It continue to be strategically positioned as a producer of high-end ceramic tiles that becoming standard in many new construction and development project in China. Even as our – even as we adapt measures in the short-term enable us to reach our customers more effectively. We are confident that our branding and positioning enabled us to successfully execute upon our long term strategies, which is will be a prominent producer of specialized building materials products. Now at this time, I would like to turn over the call to the company’s Chief Financial Officer, Mr. Edmund Hen, who will discuss the company’s earnings results in more detail. Thank you.

Thank you Mr. Huang and thank you Mabel. I will now move on to a more detailed discussion of our preliminary financial results for the fourth quarter and full year ended December 31, 2012. Our revenue for the fourth quarter 2012 was RMB 245.3 million or US$40 million down 39.3% from RMB 404.5 million or US$63.8 million in the fourth quarter of 2011. The year-over-year decrease in revenue was due to a 29.8% decrease in the sales volume of ceramic tiles to 8.7 million square meters in the fourth quarter of 2012 from the fourth quarter of 2011. As well as a 13.8% decrease in the company’s average selling price versus the comparable year ago quarter. We attribute the reduced sales volume in the quarter to the challenging business conditions in China’s construction sector and the decrease in our average selling price to competitive pressures and our strategy to hold our market position. Gross profits for the fourth quarter of 2012 was RMB 29.3 million or US$4.9 million as compared to RMB 139.4 million or US$21.9 million for the fourth quarter of 2011. The year-over-year decrease in gross profit was due to lower sales volumes and the decrease in average sales price of our ceramic tiles in the most recent quarter. Our gross profit margin for the fourth quarter was 12% compared to a 34.5% for the same period of 2011, was caused primarily by decrease in average selling price of ceramic tiles in the quarter. Profit before taxes for the fourth quarter of 2012 was RMB 18.6 million or US$3.2 million as compared to RMB 125.4 million or US$19.7 million in the fourth quarter of 2011. Net profit for the fourth quarter of 2012 was RMB 13.3 million or US$2.3 million as compared to RMB 92.2 million or US$14.5…

(Operator Instructions). Your first question comes from [Howard Flinker].

I have two questions. One do I understand that your prices are now back to where they were before the discount? And second, volumes are increasing, orders are increasing they are still somewhat below last year’s orders?

We’re on the way to get back to the normal level of the average selling price. And we’re very near to the price before we discount right now. And for the second question is that, the volume is still probably as heavy and is still lower than the same period last year at this moment.

And approximately how much are the orders below last year at this time and while they are recovering?

We’ve no final figure yet, yet it is still early. Well, probably you’ll be noticed during the first quarter of 2012 I think.

Do you not have those numbers yet?

We do not have those numbers yet.

Okay. Thank you.

Okay.

And your next question comes from Steve Martin with Slater Capital Management. Steve Martin – Slater Capital Management: Hi, guys. I guess we’re all a little disappointed because you insisted on adding all that capacity when we urged you not to and now you are not using it. What I would like to understand is why with your volume down as much as it is and your projected revenue is down as much as they are, your inventory and receivables are flat and should be down and your payables are down and so it seems you are paying your vendors but you are not getting paid from your customers?

Yes for the – the actual relative with that (inaudible) are difficult moments. We just want to give some support to our customer. And we extended some of the terms to more than 90 days. And at the same time, we also, we still need some close relationship if I was supplier so we still pay them on high. It’s the reason why our economy is difficult and recently it looks flat compared to the last period. And for the, I think for the capacity, we’ve increased that for the past few years and so we’re preparing for growth but unfortunately the downturn for the Chinese ethylene market, we just need to wait for – wait for a while. And as you can see, we did not have much capital expenditure during the past year. Steve Martin – Slater Capital Management: Right. Now let’s go back, can we go back to the inventories for a second if you are – if your backlog is only US$22 million and you produce inventories to order why are your inventories more than twice your backlog?

First of all because some of our customers just also have slowdown in business and lots of them have – some of them have delayed their – picking up for the inventory, for the goods. It’s a reason why you can see the inventory turn up as spun up a little. Steve Martin – Slater Capital Management: Right. But if you know what your backlog is, why are you producing more inventory?

We, first of all, I think the inventory will be picking up very soon in the first quarter or so and also because of the Chinese New Year. We have that Chinese New Year very near to the year-end. And a loss of pay for inventory has been picked up during this period and for the backlog. So, that’s why we take about 90 days period to produce such a inventory. So we actually have those, you can see our production capacity, actually we are using less than before and we just slowdown our production capacity during this period also in order to lower the inventory backlog. Steve Martin – Slater Capital Management: All right. Well, I would urge to focus on generating cash and not using it. Obviously the Chinese market is what it is. We all tried to warn you and you ignored it. So, thank you.

Our next question comes from the line (Liang Sue) with King Capital.

Hi, good morning.

Hi.

I understand that there is a general slowdown in the real estate and construction sectors in China, but if we compare your financial performances as you know in the recent quarter to the overall China’s construction industry, it appeared that you have, you know somewhat underperformed the industry. So, I know you have providing price concession in the fourth quarter tried to retain your market share but are you losing market share there or you know have you been able to retain your market share? Thank you. And that’s, that’s my first question. And my second question is just wondering if you can now provide some update on the, your strategic supply relationship with the China Decoration, have you made your first delivery and when do you expect that you have more like commercial delivery to China Decoration? Thank you.

Actually it at the very end of last year and our competitor has entered in price war. That forced us to reduce our price to maintain our market share until now. Why I think is, our mark, we still have a very positive market shares in the markets. And what we understand some of this small competitor has already started their production already. So, probably we need to wait for a while before we get back to normal for our pricing or the systematic situation. And for your second question, we are still working with this China Decoration right now, we hoped and with this we will have (inaudible) differ some of the goods to them very soon probably in the late second quarter or third quarter, beginning of the third quarter. But at this moment we have – know any figures that can be announced to the public yet.

Okay. Is it true that China Decoration is highly exposed to the mode of economic housing as supposed to – in other words, it is more exposed to the economic housing so it’s such a loss to the slowdown in the construction because the government is supporting it. And that was somewhat because being a strategic supplier to China Decoration, you will be able to somewhat picked up on the volume?

I surely notice China Decoration is stable business and behalf of our (inaudible) business operations and economic housing is one of their revenue I think. And they also have lots of overseas projects. And I’m not sure how – what is their – revenue mix within their corporation, I think that will really help us to have a more stable revenue pattern in future if we can have a very good relationship – business relationship with them.

Okay. Thank you.

Thank you.

Your next question comes from Chris White with Greenstone. Chris White – Greenstone: Yes, Edmund. First of all, I think I heard you on the call where you said you like to take care of your customers, I would just like to make the statement that we would appreciate if you take care of your shareholders with the same manner and given the fact that you told me that you wouldn’t be discounting pricing (inaudible) record is doing that in December it’s pretty disappointing and a bit of a knock to your credibility personally may so, very disappointing. Now with regards to the dividend, I appreciate that I’m stressing and its obviously noticeable that investors are only looking to really invest in companies that think about shareholders and return in capital. Given the slowdown in your business today the low utilization can, you or Paul or Bill please talk to the fact about the dividend policy the thought behind implementing that in Q4 and return in future capital to shareholders either by increasing that dividend or buyback as the business turns around and can you or the board please address that question? Thank you.

You want me to answer that Edmund?

Yeah, please do it. Thank you, Paul.

Yeah. The Board has Edmund indicated announced an annual dividend, the Board has undertaken a dividend policy which it hopes to continue to replicate (inaudible), what’s in our intention to have two back-to-back special dividends, the idea was that this would be an annual dividend. And as long as everything is within our power, I mean, there are those strange things that happen in the future which could affect any business or any accounting area so forth. To the second aspect of the – and by the way let me just say in terms of dividend one would hope that if we grow as we would expect to use growing experience, as the dividend will grow in a commensurate fashion. Now, as we have not considered, if we had considered a buyback that would have been announced that has not been something that which the board has considered or which has any statements regarding it. Chris White – Greenstone: So Paul, can I clarify how you think about the dividend, is it at the synergy of free cash flow going forward, can we have a little bit more clarification on that just that we can think about having – would turnaround relative to the business?

I think in general as I indicated to you, a growing business, growing earnings equals growing dividend, we have not formulated as far as I’m concerned because we can see forward as Board what our needs maybe for cash generators and there maybe some needs under certain circumstances which are necessary that we put back into the business rather than paying – being paid externally. So naturally a growing business means that you got growing cash flow, is growing cash. But, we don’t have a formula that we are (ianudible) at this point.

Right. Well, do you want to share appreciate working with you and the board through this and we do appreciate those return and thinking about shareholders rather than just spending but it is very disappointed to see some of the underlying business exits has gone on with (ianudible) here in the fourth quarter. I think I feel lucky that I value the company on a book value basis and not based on the current metrics of the underlying income statement (ianudible).

Could I also say Edmund, I think it would be good to extrapolate on another aspect here which it relates to the price tags that were in effect in December and we will carryover in part into early January. As you mentioned the company has given additional terms in terms of accounts receivable to help customers to that are match off good deliveries with the slowdowns by some of the developers. But what that does is it changes somewhat, some portion of our business because everybody doesn’t get longer trade terms. It changes the product cycle which everybody has gotten used to that the backlog at the end of the particular quarter was a very good indicator for the coming quarter. Obviously if you have terms that are beyond 90 days the tendency would be – it’s always sales to actually hit the income statement not in the next quarter but in the quarter after that. So I would say that I would be mindful of this and not necessarily apply the same market if you did previously in a different economic environment. That’s all I have to say now. Chris White – Greenstone: Thanks.

(Operator Instructions)

I actually if I could extrapolate my own answer just a second ago. In pushing forward that means that an order taken may not actually be booked as a sale during the second quarter thereafter. And so there would be lag if those sales represented any discounts and it was a restoration of normal pricing would be something that you would necessarily see in the quarter after that becomes a general market situation but rather something that would be seen more in the second quarter thereafter.

There are no further questions. I would now turn the call over to David Rudnick of CCG.

Thank you, Melissa. And on the behalf of the entire China Ceramic’s management team I would like to thank all of you for your interest and participation on this call. This concludes China Ceramics fourth quarter and fiscal year end 2012 earnings conference call. Thank you all very much.

This concludes today’s conference call, you may now disconnect.