China Ceramics Co., Ltd. announced that the market for building construction products in China is becoming increasingly challenging and that the company expects to record a non-cash impairment charge of RMB 421.6 million for the fourth quarter of 2015 related to non-current assets at its Hengda and Hengdali production facilities.  The impairment of the non-current assets is attributable to challenging market conditions in China which are expected to result in a contraction in demand for the company's products in fiscal 2016. The asset impairment consists of an estimated RMB 124.8 million associated with property, plant and equipment, land use rights and goodwill at the Company's Hengda facility and an estimated RMB 296.8 million associated with property, plant and equipment, land use rights and goodwill at its Hengdali facility.

As a result, the company's fourth quarter earnings will be negatively impacted by this non-recurring, non-cash charge.  This non-cash accounting charge will not impact the company's liquidity, cash flows from operations or compliance with its debt covenants.  The company anticipates that its fourth quarter revenue and gross profit will be generally in line with its previously discussed outlook, with revenue in the range of RMB 195 million to RMB 215 million, but with gross profit slightly higher than the indicated range of RMB 25 million to RMB 28 million.