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China is the largest manufacturer of ceramics in the world. During the period from 1991 to 2003, the output of ceramics in China increased from 272 million square metres per annum to 3,250 million square metres per annum with an average annual growth rate of 22.9 per cent.

China also has the largest consumption of ceramic wall and floor tiles in the world. In 2003, it consumed a total of 3,055 million square metres of ceramics which accounted for approximately 45 per cent. of the total global consumption.

The Directors consider the following factors will drive demand for ceramics in China:
(1) the increasing rate of urbanisation;
(2) the substantial increase of construction investment in small-to-medium size cities and towns;
(3) the commercialisation of residential properties;
(4) the improvement of people’s living standards and;
(5) the demand for green and multi-functional construction products of high quality.

According to a survey conducted by China Home Improvement Industry Economic Index Research Centre in November 2009, 43 per cent. of the people surveyed preferred to purchase bathroom ceramics and sanitaryware through specialised brand retail outlets due to the specialisation and practicability they have offered to customers. The specialised brand retail outlets have become the main distribution channel of bathroom ceramics and sanitaryware.
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