- Teleconference to be Held Thursday, May 15, 2008, at 8:30 a.m.
EDT - BEIJING, May 14, 2008 /Xinhua-PRNewswire-FirstCall/ -- Fuwei
Films (Holdings) Co. Limited (NASDAQ:FFHL) ("Fuwei" or "the
Company"), a manufacturer and distributor of high-quality BOPET
plastic films in China, today released the financial results for
the first quarter of 2008 ended March 31, 2008. First Quarter 2008
Financial Highlights -- Revenues rose 4.8% to US$14.5 million (RMB
104.0 million) from the first quarter of 2007 -- Net income
declined to US$1.1 million (RMB 7.9 million) from RMB 13.3 million
in first quarter 2007, but rose from RMB 1.0 million in fourth
quarter 2007 "We entered 2008 facing a number of challenges," said
Xiaoan He, Chairman and CEO of Fuwei. "However, our newly
strengthened R&D platform is expected to increase our ability
to develop more high value-added specialty film products to counter
the unfavorable trend of higher energy and raw material costs."
First Quarter 2008 Financial Results Revenues for the first quarter
of 2008 rose 4.8% to US$14.5 million (RMB 104.0 million), from RMB
99.3 million in the first quarter of 2007. Revenues of specialty
films in first quarter 2008 were US$4.7 million (RMB 33.8 million),
or 32.5% of total revenues. The following is a breakdown of
commodity and specialty film sales for the three-month periods
ended March 31, 2008 and March 31, 2007 (amounts in thousands):
Three months period ended March March 31,2008 31,2007 RMB US$ % of
Total RMB % of Total Printing film 19,230 2,686 18.5% 19,585 19.7%
Stamping film 21,211 2,963 20.4% 23,128 23.3% Metallization film
2,901 405 2.8% 5,936 6.0% Base film for other Applications 26,927
3,761 25.9% 12,128 12.2% Specialty film 33,765 4,716 32.5% 38,489
38.8% Total 104,034 14,530 100.0% 99,265 100.0% Revenues from
overseas in the first quarter of 2008 were US$3.4 million (RMB 24.1
million), or 23.2% of total revenues. The following is a breakdown
of domestic versus overseas sales for the three-month periods ended
March 31, 2008 and March 31, 2007 (amounts in thousands): Three
months period ended March March 31,2008 31,2007 RMB US$ % of Total
RMB % of Total Sales in China 79,899 11,160 76.8% 66,247 66.7%
Sales in other countries 24,135 3,371 23.2% 33,018 33.3% Total
104,034 14,530 100.0% 99,265 100.0% Gross profit for the first
quarter of 2008 was US$3.0 million (RMB 21.6 million), compared
with RMB 23.6 million in same period 2007. The Company generated a
gross margin of 20.8% in the first quarter 2008, versus 23.7% in
the same period of 2007. The decrease in gross margin was due to
increased consumption of raw materials, labor and power. Operating
expenses in the first quarter of 2008 were US$1.6 million (RMB 11.2
million), compared with RMB 6.2 million in same period 2007. The
increase was mainly due to the increased legal expenses related to
ongoing litigation and increased staffing costs. Selling expenses
in the first quarter 2008 decreased to US$0.5 million (RMB 3.4
million) from RMB 3.7 million in the same period 2007.
Administrative expenses increased to US$1.1 million (RMB 7.7
million) from RMB 2.5 million in the first quarter of 2007. Net
income for the first quarter of 2008 decreased to US$1.1 million
(RMB 7.9 million), or diluted EPS of US$0.08 (RMB 0.61), from RMB
13.3 million, or diluted EPS of RMB 1.02 in the same period of
2007. On a sequential basis, net income rose from RMB 1.0 million,
or RMB 0.08 per share, in the fourth quarter of 2007. Total cash
and cash equivalents as of March 31, 2008 were US$1.6 million (RMB
11.4 million) as compared with RMB 30.9 million as of December 31,
2007. Total shareholders' equity increased to US$74.3 million (RMB
521.1 million) as of March 31, 2008 from RMB 512.5 million as of
December 31, 2007. As of March 31, 2008, the Company had 13,062,500
basic and diluted total ordinary shares outstanding. Anti-Dumping
Case Updates In April, the Company received notice of a preliminary
anti-dumping assessment issued by the Korean Trade Commission
(KTC). The initial assessment of the tariff rate for Fuwei was
6.13%, versus 24.37% for Chinese companies on average. The KTC
began its anti-dumping investigation of BOPET film products from
China and India in November 2007. After studying the trade
practices of six Chinese BOPET manufacturers, including Fuwei, and
several Indian manufacturers, the KTC issued its preliminary tariff
assessment. Fuwei was notified by the KTC that its tarrif rate will
be 6.13%, the single-lowest rate received among all the Chinese and
Indian manufacturers involved in the investigation. KTC will
announce a formal resolution of the anti-dumping case in the
summer, upon which the new rates will become effective. "The
decision reached by the KTC is expected to strengthen Fuwei's
reputation as a Chinese exporter of BOPET films to Korea," said Mr.
Xiaoan He, Chairman and CEO of Fuwei. "Fuwei first entered the
Korean market in 2005 and since then we have been adding higher-end
specialty film products to our export offerings, which makes our
products less liable for the anti-dumping case. While tariffs have
always been a distortion of the market force, we expect the Korean
assessment to work to our advantage to further expand our presence
in the overseas market." Additionally, the U.S. Department of
Commerce has also informed the Company of its preliminary
assessment of dumping margins, which has been set at 46.82%, also
the lowest among Chinese companies investigated. The Department of
Commerce is expected to make its final determination in July 2008.
Conference Call Information The Company will host a teleconference
tomorrow, Thursday, May 15, 2008, at 8:30 a.m. EDT / 8:30 p.m.
Beijing time to discuss the quarterly results. To participate in
the call, please dial +1 877-407-9205 in North America, or +1
201-689-8054 internationally, approximately 10 minutes prior to the
scheduled call start time. The call is being simultaneously Webcast
and can be accessed on the Fuwei Films Website at
http://www.fuweiholdings.com/. Please visit the Web site at least
15 minutes prior to the scheduled call time to register for the Web
cast and download any necessary audio software. A replay of the
call can also be accessed via telephone from 12:00 p.m. EDT on
Thursday, May 15, 2008, through 11:59 p.m. EST on Friday, May 23,
2008, by calling +1-877-660-6853 in North America, or
+1-201-612-7415 internationally, and entering the following access
codes: Account #: 286 and Conference ID: 283212. A Web cast replay
of the call will also be made and can be accessed on the Fuwei
Films site at http://www.fuweiholdings.com/. About Fuwei Films
Fuwei Films conducts its business through its wholly owned
subsidiary Shandong Fuwei Films Co., Ltd. Shandong Fuwei develops,
manufactures and distributes high-quality plastic films using the
biaxial oriented stretch technique, otherwise known as BOPET film
(biaxially oriented polyethylene terephthalate). Fuwei's BOPET film
is widely used to package food, medicine, cosmetics, tobacco and
alcohol, as well as in the imaging, electronics, and magnetic
products industries. For more information about the Company, please
visit the Company's website at http://www.fuweiholdings.com/ . Safe
Harbor This press release contains information that constitutes
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Any such forward-looking statements involve risk and uncertainties
that could cause actual results to differ materially from any
future results described by the forward-looking statements. Risk
factors that could contribute to such differences include those
matters more fiscally disclosed in the Company's reports filed with
the Securities and Exchange Commission. The forward-looking
information provided herein represents the Company's estimates as
of the date of the press release, and subsequent events and
developments may cause the Company's estimates to change. The
Company specifically disclaims any obligation to update the
forward- looking information in the future. Therefore, this
forward-looking information should not be relied upon as
representing the Company's estimates of its future financial
performance as of any date subsequent to the date of this press
release. The forward-looking statements included in this press
release are subject to risks, uncertainties and assumptions about
our businesses and business environments. These statements reflect
our current views with respect to future events and are not a
guarantee of future performance. Actual results of our operations
may differ materially from information contained in the
forward-looking statements as a result of risk factors some of
which are include, among other things, competition in the BOPET
film industry; growth of, and risks inherent in, the BOPET film
industry in China; uncertainty as to future profitability and our
ability to obtain adequate financing for our planned capital
expenditure requirements; uncertainty as to our ability to
continuously develop new BOPET film products and keep up with
changes in BOPET film technology; risks associated with possible
defects and errors in our products; uncertainty as to our ability
to protect and enforce our intellectual property rights;
uncertainty as to our ability to attract and retain qualified
executives and personnel; and uncertainty in acquiring raw
materials on time and on acceptable terms, particularly in view of
the volatility in the prices of petroleum products in recent years.
For more information, please contact: In China: Christina He
Investor Relations Manager Tel: +86-10-8518-5620 Email: In the
U.S.: Leslie Wolf-Creutzfeldt Investor Relations Grayling Global
Tel: +1-646-284-9472 Email: Financial Tables to Follow FUWEI FILMS
(HOLDINGS) CO., LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED
BALANCE SHEETS AS OF MARCH 31, 2008 AND DECEMBER 31, 2007 (amounts
in thousands except share and per share value) As of Mar. 31, 2008
As of Dec. 31, 2007 RMB US$ RMB (Unaudited) (Audited) ASSETS
Current assets Cash and cash equivalents 11,416 1,628 30,909
Restricted cash 31,444 4,484 64,909 Accounts receivable, net 57,428
8,190 58,195 Inventories 49,690 7,086 41,670 Prepayments and other
receivables 34,117 4,865 16,160 Total current assets 184,096 26,254
211,842 Property, plant and equipment, net 223,346 31,852 228,309
Construction in progress 290,926 41,490 265,253 Lease prepayments,
net 22,915 3,268 22,290 Deposit 26,000 3,708 -- Intangible assets 3
0.4 36 Goodwill 10,276 1,465 10,276 Deferred tax assets 969 138 969
Total assets 758,531 108,176 738,975 LIABILITIES AND SHAREHOLDERS'
EQUITY Current liabilities Short-term borrowings 185,669 26,479
188,027 Accounts payables 21,300 3,038 19,609 Accrued expenses and
other payables 30,208 4,308 18,544 Deferred tax liabilities 266 38
265 Total liabilities 237,443 33,862 226,445 Shareholders' equity
Ordinary shares of US$0.129752 par value; 20,000,000 shares
authorized; 13,062,500 issued and outstanding 13,323 1,900 13,323
Additional paid-in capital 311,907 44,482 311,907 Retained earnings
194,089 27,679 186,152 Cumulative translation adjustment 1,769 252
1,148 Total shareholders' equity 521,087 74,314 512,530 Total
liabilities and shareholders' equity 758,531 108,176 738,975 FUWEI
FILMS (HOLDINGS) CO., LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED
STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME FOR THE THREE
MONTHS ENDED MARCH 31, 2008 AND 2007 (amounts in thousands except
share and per share value) (UNAUDITED) Period Ended Period Ended
Mar.31, 2008 Mar. 31,2007 RMB US$ RMB Revenue 104,034 14,530 99,265
Cost of goods sold (82,409) (11,510) (75,709) Gross profit 21,625
3,020 23,556 Operating expenses - Distribution expenses (3,438)
(480) (3,666) - Administrative expenses (7,724) (1,079) (2,509)
Total operating expenses (11,163) (1,559) (6,175) Operating income
10,463 1,461 17,381 Other income/(expense) - Interest income 16 2
190 - Interest expense (3,790) (529) (3,150) - Other, net 2,241 313
331 Total other expense (1,533) (214) (2,629) Income before income
tax expense 8,930 1,247 14,752 Income tax expense (993) (139)
(1,489) Net income 7,937 1,109 13,263 Other comprehensive income -
Foreign currency translation adjustments 620 87 3,977 Comprehensive
income 8,557 1,195 17,240 Earnings per share - Basic 0.61 0.08 1.02
- Diluted 0.61 0.08 1.02 Weighted average number of ordinary shares
- Basic 13,062,500 13,062,500 13,062,500 - Diluted 13,062,500
13,062,500 13,062,500 FUWEI FILMS (HOLDINGS) CO., LTD. AND
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR
THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007 (amounts in
thousands except share and per share value) (UNAUDITED) Period
Ended Mar. Period Ended 31,2008 Mar. 31,2007 RMB US$ RMB CASH FLOWS
FROM OPERATING ACTIVITIES Net income 7,937 1,109 13,263 Adjustments
to reconcile net income to net cash Provided by operating
activities - Depreciation of property, plant and equipment 5,909
825 5,870 - Amortization of lease prepayments and intangible assets
(149) (21) 149 - Deferred income taxes -- -- 507 - Bad debt expense
73 10 (872) Changes in operating assets and liabilities, net of -
Share capital contribution - rental and interest paid by
shareholders 2,756 385 - Accounts receivable 856 120 985 -
Inventories (8,020) (1,120) (1,127) - Prepaid expenses and other
current assets (18,859) (2,634) 2,054 - Accounts payable 1,695 237
4,913 - Accrued expenses and other payables 11,667 1,629 834 Net
cash provided by operating activities 4,162 581 33,838 CASH FLOWS
FROM INVESTING ACTIVITIES Purchases of property, plant and
equipment (946) (132) (134) Restricted cash related to trade
finance 33,464 4,674 13,900 Addition to construction in progress
(25,673) (3,586) (47,604) Deposit for purchase (26,000) (3,631) Net
cash used in investing activities 19,155 2,675 (33,838) CASH FLOW
FROM FINANCING ACTIVITIES Principal payments of short-term bank
loans (12,869) (1,797) (237,670) Proceeds from short-term bank
loans 11,139 1,556 169,090 Net cash used in financing activities
(1,730) (242) (68,580) Effect of foreign exchange rate changes
(2,770) (273) (1,008) Net increase/(decrease) in cash and cash
equivalent (1,9,493) (2,609) (76,798) - Cash and cash equivalent at
beginning of period 30,909 4,237 253,250 - Cash and cash equivalent
at end of period 11,416 1,628 176,452 Supplemental disclosure of
cash flow information Cash paid during the period for - Interest
paid 3,919 547 4,774 - Income taxes paid 993 139 981 DATASOURCE:
Fuwei Films (Holdings) Co. Limited CONTACT: In China: Christina He,
Investor Relations Manager at +86-10- 8518-5620 or ; or in the
U.S.: Leslie Wolf-Creutzfeldt, Investor Relations at Grayling
Global at +1-646-284-9472 or lwolf- Web Site:
http://www.fuweiholdings.com/
Copyright
Fuwei Films (NASDAQ:FFHL)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Fuwei Films (NASDAQ:FFHL)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024