Good morning, my name is Harvey Kent and I will be your conference operator today. At this time, I would like to welcome everyone to the Third Quarter 2016 Earnings 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] Thank you. I'd now turn the conference over to David Rudnick, please go ahead.

Thank you, Harvey. Good morning, ladies and gentlemen and good evening to those of you who are joining us from China. Welcome to China Ceramics’ Third Quarter 2016 earnings conference call. With us today are China Ceramics' Chairman and Chief Executive Officer, Mr. Jia Dong Huang; and his Chief Financial Officer, Mr. Edmund Hen. Before I turn the call over to Mr. Huang, may I remind our listeners that during this call, management's prepared remarks contain forward-looking statements which are subject to risks 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 is contained in the Private Securities Litigation Reform Act of 1995. Actual results may differ from those discussed today. We refer you to a more detailed discussion of the risks and uncertainties in the Company's filings with the Securities and Exchange Commission. In addition, any projections as the Company's future performance represent management's estimates as of today December 19, 2016. China Ceramics assumes no obligation to update these projections in the future as market conditions change. To supplement the financial result presented in accordance with U.S. GAAP management will make reference to earnings before interest, taxes, depreciation and amortization which we will call by its abbreviated name EBITDA. EBITDA is a non-GAAP financial measure reconciled from net income which the company believes provide meaningful additional information to better understand its operating performance. A table reconciling net income to EBITDA can be found in the earnings press release issued earlier today. And now it's my pleasure to turn the call over to China Ceramic's Chairman and CEO, Mr. Jia Don Huang, and China Ceramic's CFO, Mr. Edmund Hen. Ms. Dai will be translating for Mr. Huang.

[Foreign Language] Thank you, David. On behalf of the company, I would like to welcome everyone to our third quarter 2016 earnings conference call. [Foreign Language] We experienced continued sluggish market conditions in the third quarter of 2016 due to the slowing real estate and construction sectors across China. We saw our sales volume decline by 25% for the first nine months of the year as compared to the year-ago period due to a continued contraction in consumer demand. However, we were still able to generate a reasonable level of positive cash flow in the current quarter. [Foreign Language] In order to move inventory, beginning on July 1, we institute a 10% reduction in the prices of slowly moving products which we hope will turn some of the inventory into cash. We are also looking for ways to operate more efficiently and are working with our distributors and suppliers to maintain sustainability in this challenging market environment. [Foreign Language] During the third quarter, we utilized the production facilities capable of producing 38 million square meters of ceramic tiles per year out of the Company’s usable annual production capacity of 62 million square meters. As we have in past quarters, we maintained a reduced utilization of existing plant capacity based on the current market conditions in order to keep our operating costs low and we will bring additional capacity online as the business environment improves. [Foreign Language] For the remainder of 2016 and into the first half of 2017, we anticipate continued challenging market conditions due to there being excess real estate for sale in many of China’s cities and overabundance of building materials inventories. In the long-term, we believe that the current retrenchment [ph] will moderate and reach an inflection point and we will return to a more moderate growth environment as real estate development and construction continues to be important components to China’s economy. We are well positioned to capitalize on opportunities in our sector relative to our competition and believe that we can be adaptive so as to optimize our success during these challenging times. With that I would like to turn over the call to the company’s Chief Financial Officer, Mr. Edmund Hen who will discuss the company’s third quarter earnings results in more detail. Thank you.

Thank you, Mr. Huang. I will now move on to a more detailed discussion of our financial results for the third quarter of 2016. Our revenue for the third quarter end September 30, 2016 was RMB251.2 million or US$38.1 million, as compared to RMB339 million or US$53.3 million in the third quarter of 2015. The year-over-year decrease in revenue was primarily due to a 17.3% decrease in sales volume to 9.1 million square meters of ceramic tiles from 11 million square meters of ceramic tiles in the year ago quarter and 10.7% decrease in average selling price to RMB27.6 per square meters from RMB30.9 per square meter in the year ago quarter. Gross profit for the third quarter end September 30, 2016 was RMB6.7 million or US$1 million, as compared to RMB46.3 million or US$7.3 million in the year ago quarter. The gross profit margin was 2.7% for the third quarter compared to a gross profit margin of 13.7% in the year ago quarter. The reduction in gross margin was primarily driven by, one, the 10.7% decrease in the average selling price of the company’s ceramic tiles, attributable to our having instituted a 10% decrease in the price of slow moving inventory beginning on July 1, 2016 due to challenging market conditions, and to RMB16.8 million write down of inventory in the third quarter of 2016. Other income for the third quarter ended September 30, 2016 was RMB3.6 million or US$0.5 million, as compared to RMB0.2 million or US$0.3 million for the third quarter of 2015. The year-over-year increase in other income was primarily due to RMB3.5 million or US$0.5 million [Audio Gap] of rental income received by the company received by leasing out of one of the production lines from its Hengdali facility pursuant to an eight-year leased contract.…

[Operator Instructions]. Your first question comes from Howard Flinker with Flinker & Co.

Hello Mr. Huang, I am happy to have met you a few days week ago. Edmund I have a, I think I have a typo in the quarterly report. I am turning the page here. On the income statement, you have -- it’s probably a tax credit and it look like a tax deduction. They forget to put the brackets around the credit. Where I can’t find it, but I will see here. On page 6. When you have the English revenue -- I mean the American, the English revenue and the Chinese renminbi in the column that says U.S. dollars we have a 129 million pretax and then 45 million added to that to get to 174. I think you meant the reversal rather than expense. It looks like an expense. Do you see what I am saying?

Which line -- you mean the backlog?

The 45 -- was the 45,000 -- yeah 45,000 USD. There is 129 which is pretax profit and then there is 45 and then 174. And the 45 is an addition to the 129, but it looks like a normal subtraction so you might want to check the typing on that.

Yeah, I would check on that.

Okay. Somebody asked me to ask you, I think it’s academic. If somebody came along with a bid for the whole company at a few times the current stock price, I don’t know three or four times. Would you listen? Even though we know cash is much higher than that? It’s not my question, I know the answer, but I’d promised I’d ask the question.

What do you mean, given the stock prices now is three or four times higher than current price?

Yeah.

Yeah, so what is your question?

The question is, if somebody came along for a bid for the whole company at that price?

Yeah.

Would you and Jia Dong Huang listen?

Will I and Jia Dong Huang will, sell the company?

Yes.

This is -- there is no straight answer for this question. So probably we need to discuss with the board member on this matter.

Yeah, that’s only a theoretical question, I don’t think he was -- he had the money available to do it. But he realized that the balance sheet is worth much more than the stock price and he thought, how much do I think its worth? So I said I think I know, because I met them a few weeks ago in Hengdali, but I had promised, I would ask the question. [Foreign Language] I hope to meet you again. Thanks.

[Operator Instructions] Your next question comes from James Kahn, Private Investor.

Good morning. I have a few short questions. One is, there is a cost to be publicly traded on the New York Stock Exchange or NASDAQ. And it’s fairly considerable cost for a tiny companies. I’m wondering, given that as we just discussed that the liquidation value of your company is multiples in excess of the share price.

Yeah.

So the markets are not being -- the U.S. markets are not being kind to your company, what is your justification, why these stay traded on the U.S. markets? You could take the company private or liquidate. So what’s your reasoning for being willing to pay that annual cost?

Yeah, this is a good question. The board member and also Mr. Huang was do think that is better to keep the listing status, on the first hand and also to do business in China by naming at listed company that we will have such certain advantage to do business in China. And we also think, we are also working hard to tell all the investor that we will one day have a chance to have a very good return to them on this stock price. Now, so at this movement, we are still happy to keep this listing status in U.S.

I understand. Okay. Thank you. So one follow-up question. An admirable attribute of Chinese culture in general is to think very long term and Americans are famous for sometimes being very short term oriented. So given that you have said that in the near future there will be continued pressure on your business, but you’ve also just said that you think in the more distinct future things will do very well and given what Americans do every year at this time is they dump their loosing stocks, so that they can get a deduction and offset to their gains and not have to pay tax. So we have now two [ph] things before December 31 and given the report you just gave, the irrational price of your stock might come even more irrational. If CCCL sells off sharply as a result of your earnings report, is there a price at which you the company, or you as individuals might start to buy it to take advantage of this people, who are dumping it without regard to price or value just to get the tax loss?

I think your question does not apply to the Chinese people or the company.

No. It’s not like -- but you could advantage of the America. I mean, suppose they drive the stock down $1 a share, $0.50 a share, as a result of this.

Yes.

Would you buy?

Also this is now very strict. I cannot answer you directly on this matter. We also need to think the higher questions. But we will think about your question on this matter.

Okay. Thank you very much.

Thank you.

[Operator Instructions]. At this time, there are no further questions. At this time, there are no further questions. You may continue with your presentation or closing remarks.

Thank you.

Thank you, everyone. On behalf of the entire China Ceramics’ management team, we want to thank all of you for your interest and participation on this call. This concludes China Ceramics’ third quarter 2016 earnings conference call. Thank you all very much.

Ladies and gentlemen, this concludes today’s conference call. You may now disconnect.