Frankfurt, May 31, 2016 – During the first quarter of fiscal 2016, Roy Ceramics SE (“ROY”) did not generate significant revenues from the sale of sanitary ware products. The net gain of €0.4 million for the first quarter of 2016 reflects the closure of the Beijing plant and ROY’s declining business in the People’s Republic of China and is attributable to interest income on the receivables from White Horse Holdings Limited (“White Horse”) of €1.1 million, partially offset by fixed costs for the business in Germany, the U.S. and Hong Kong.
As a result of the divestment of its two main operating subsidiaries in China to White Horse in September 2015 and the current transition period for the planned relocation to the USA, ROY Ceramics did not generate significant revenues in the first quarter of 2016 (Q1 2015: €30.9 million). No other significant business events have taken place during this period.
The non-current assets of ROY Ceramics comprise €82.2 million at the end of the first quarter of 2016 (December 31, 2015: €82.5 million). Non-current assets are mainly composed of property, machinery and equipment. Current assets are mainly the outstanding amount of White Horse amounting to 75.9 million euros (December 31, 2015: 75.7 million euros). The Group’s equity amounts to 155.2 million euros (December 31, 2015: 154.8 million euros).
The sale of the two Chinese subsidiaries for a purchase price of US $80.0 million, which took place in September 2015, has laid the foundation for the relocation of ROY Ceramics’ production from China to the USA. The buyer, White Horse, has agreed to pay the purchase price no later than June 30, 2016.
The information in the forecast report contained in the Group Management Report in the 2015 Annual Report continues to apply to ROY Ceramics SE.
About ROY Ceramics SE
Until the closure of the production plant in Beijing, due to the sale of the operating subsidiaries in China in September 2015, ROY Ceramics manufactured the full range of sanitary bathroom fixtures for use in mid- to high-end buildings. ROY Ceramics has offered high quality and aesthetically pleasing sanitary ware in the PRC. In the future, the Group intends to be one of the leading suppliers of sanitary ware in the US and international markets. Production will be relocated to a new state-of-the-art ceramic ware manufacturing facility to be built in Houston, Texas. During the construction phase, ROY Ceramics intends to outsource production to an original equipment manufacturer’s plant in one of the ASEAN countries.