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Questioning About China Ceramics (CCCL)

|Includes:China Ceramics Co., Ltd. (CCCL)

I had not hold any position of the stocks mentioned in this article. I've no plan to do so in the next week.

On 12 Mar 2013, I raised 7 questions in, which is the top and the most influential Chinese website focusing on US-listed Chinese companies. They were sent to CCCL's CFO, copying to all the website's users. So far, the company had no response. The questions are listed here : Below is a simple translation into English.



1. Income tax. 2011 20-K indicated income tax is RMB100m+, but Quanzhou City Tax Bureau's official website only shows RMB20m+. Why? Can the company provide all the income tax receipt s for both 2011 and 2012?

2. Buyback and additional issue. The company's stock price has been steadily dropping and it should have bought back, but on the contrary, it had additional issue of 4m stocks, from 16m to 20m. Its management team only bought back less than 20k stocks in total, not even close to 0.1%! If the comany believes it's deeply undervalued, why still additional issue?

3.Privatization. Why the company rejected the privatization proposal @ such a high price as $7.5 while its current price is only $2.8? Any reasons too embarassed to disclose?

4.CPA's qualification. Audit fee in 2011 is RMB3.5m. With this big fee and the small auditing workload, the company could have used a big 4 CPA, why still used Grant Thorton, a nobody from nowhere?

5.Net margin & growth. Net margin & CAGR all above 20% from 2008-2012, while only one of its 5 A-share listed domestic peers net margin made 5%, the rest all suffered loss. If the 5 peers were oysters, then lets look at the apples (the company's 4 direct competitors in the same city). I inquired and found none of them confirmed they could make 20%, in fact, far below that. So tell us what's & where's on earth the company's big ACE?

6.Environmental protection. Has the company already replaced or when will it replace fire coal with natural gas?

7.Management's integrity. As per the link here (in Chinese, apparently provided by Su Weifeng's ex-wife., Mr. Su Weifeng had a secret mistress, and together with his father, Mr Su Peizhi, treated the ex-wife very badly and unfairly. Are they true?


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: CCCL