BEIJING, Nov. 15, 2010 /PRNewswire-Asia-FirstCall/ --
Fuwei Films (Holdings) Co., Ltd. (Nasdaq: FFHL) ("Fuwei Films" or
the "Company"), a manufacturer and distributor of high-quality
BOPET plastic films in China,
today announced its unaudited financial results for the third
quarter and first nine months of 2010.
Highlights
- Net sales for the third quarter were RMB
129.2 million (US$19.3
million), compared with RMB 89.6
million in the same period of 2009;
- Gross profit for the third quarter was RMB 40.5 million (US$6.0
million), compared with RMB 7.9
million in the same period of 2009;
- Net sales during the first nine months were RMB 327.9 million (US$49.0
million), compared with RMB 236.7
million in the same period of 2009;
- Net income for the first nine months was RMB 15.3 million (US$2.3
million), compared with a net loss of RMB 19.5 million in the same nine-month period of
2009;
- Basic and diluted earnings per share for the first nine months
were RMB 1.17 (US$0.18), compared with basic and diluted net
loss per share of RMB 1.49 in the
same period of 2009;
- Sales of Specialty films for the first nine months were
RMB 53.3 million (US$8.0 million) compared to RMB 21.8 million in the same period of 2009;
- Overseas sales during the first nine months were RMB 67.6 million (US$10.1
million) compared to RMB 24.5
million in the same period of 2009.
Mr. Xiaoan He, Chairman and CEO
of Fuwei Films, said, "We are very pleased with our third quarter
and nine months financial results. The demand for BOPET films in
domestic and foreign markets has continued to increase, especially
in the foreign markets. In the third quarter we also saw the demand
in the domestic market continued to expand which resulted in the
significant increase of sales prices especially in the commodity
films area. In spite of rising competition, we saw significant
revenue growth this quarter and our gross profit was significantly
higher than the previous year."
Third Quarter of 2010 Results
Net sales during the third quarter ended September 30, 2010 were RMB 129.2 million (US$19.3
million), compared to RMB 89.6
million (US$13.1 million),
during the same period in 2009, representing a 44.2% increase.
The sales of specialty films during the third quarter ended
September 30, 2010 were RMB28.5 million (US$4.3
million), reflecting 22.1% of total net sales as compared to
12.4% in the same period of 2009. The increase was largely
attributable to the increase in demand for packaging for luxury
goods.
The following is a breakdown of commodity and specialty film
sales for the three-month periods ended September 30, 2010 and 2009 (amounts in
thousands):
|
|
Three-Month
Period Ended
September 30, 2010
|
% of
Total
|
|
Three-Month
Period Ended
September 30, 2009
|
% of
Total
|
|
|
|
RMB
|
US$
|
|
|
RMB
|
|
|
Printing film
|
|
18,842
|
2,813
|
14.6%
|
|
10,292
|
11.5%
|
|
Stamping film
|
|
67,636
|
10,098
|
52.4%
|
|
53,441
|
59.6%
|
|
Metallization
film
|
|
8,799
|
1,314
|
6.8%
|
|
8,105
|
9.0%
|
|
Specialty film
|
|
28,489
|
4,253
|
22.1%
|
|
11,149
|
12.4%
|
|
Base film for other
application
|
|
5,408
|
807
|
4.2%
|
|
6,616
|
7.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
129,174
|
19,285
|
100.0%
|
|
89,603
|
100.0%
|
|
|
|
|
|
|
|
|
|
Overseas sales during the third quarter ended September 30, 2010 were RMB30.9 million (US$4.6
million), which accounted for 23.9% of our total net
revenues, as compared with RMB 6.0
million (US$0.9 million) and
6.7% in the same period in 2009, which is 411.8% higher than the
same period last year. The increase in overseas sales was mainly
due to the recovery of overseas demand, especially the increase of
demand in Europe, North America, Korea, Japan and Southeast
Asia.
The following is a breakdown of domestic and overseas sales for
the three-month periods ended September 30,
2010 and 2009 (amounts in thousands):
|
|
Three-Month Period
Ended
September 30, 2010
|
% of Total
|
Three-Month
Period Ended
September 30, 2009
|
% of Total
|
|
|
|
RMB
|
US$
|
RMB
|
|
Sales in China
|
|
98,264
|
14,670
|
76.1%
|
83,564
|
93.3%
|
|
Sales in other
countries
|
|
30,910
|
4,615
|
23.9%
|
6,039
|
6.7%
|
|
|
|
|
|
|
|
|
|
|
|
129,174
|
19,285
|
100.0%
|
89,603
|
100.0%
|
|
|
|
|
|
|
|
|
Gross profit was RMB40.5 million
(US$6.0 million) for the third
quarter ended September 30, 2010,
representing a gross margin of 31.4%, as compared to a gross margin
of 8.8% from the same period in 2009. This was mainly due to a
significant increase in the average sales price of our products
during the third quarter compared with the same period in 2009.
Operating expenses for the third quarter ended September 30, 2010 were RMB 22.4 million (US$3.3
million), which was RMB 15.3
million (US$2.3 million) or
218.0% higher than the same period in 2009. This increase was
mainly due to increased delivery costs of overseas sales,
allowances for doubtful account receivables and other
receivables.
Net income during the third quarter ended September 30, 2010 was RMB
15.0 million (US$2.2 million)
compared to net income of RMB2.0
million (US$0.3 million)
during the same period in 2009, representing an increase in net
income of RMB 13.0 million(US$1.9
million)from the same period in 2009. The increase was mainly due
to the increase of revenue and gross margin.
Net cash flows provided by operating activities for the nine
months ended September 30, 2010 was
RMB 67.8 million (US$ 10.2 million) compared to net cash flows
provided by operating activities of RMB10.7 (US$1.6
million) for the nine months ended September 30, 2009, which is an increase of
RMB 57.0 million (US$8.5 million). This increase in cash flows from
operating activities was attributable primarily to the increased
earnings, decrease of accounts receivables and inventories, and
increase of advance payments.
Total shareholders' equity was RMB526.9
million (US$78.7 million) as
of September 30, 2010, compared with
RMB 511.6 million as of December 31, 2009.
As of September 30, 2010, the
Company had 13,062,500 basic and diluted total ordinary shares
outstanding.
Conference Call Information
The Company will host a teleconference on Tuesday, November 16, 2010, at 8:00 a.m. EDT / 9:00
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 start time.
A replay of the call can also be accessed via telephone 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:
360959. The replay will be available until December 16, 2010, at 11:59 p.m. EDT.
About Fuwei Films
Fuwei Films conducts its business through its wholly owned
subsidiary, Fuwei Films (Shandong)
Co., Ltd. ("Fuwei Shandong"). Fuwei Shandong develops, manufactures
and distributes high-quality plastic films using the biaxial
oriented stretch technique, otherwise known as BOPET film
(biaxially oriented polyethylene terephthalate). Fuwei Films' BOPET
film is widely used to package food, medicine, cosmetics, tobacco,
and alcohol, as well as in the imaging, electronics, and magnetic
products industries.
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
and is subject to risks. Risk factors that could contribute to such
differences include those matters more fully disclosed in the
Company's reports filed with the U.S. Securities and Exchange
Commission which, among other things, include both the short and
long-term effects of the global financial crisis on the Company and
the BOPET film industry; 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.
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. Actual results of our operations may differ
materially from information contained in the forward-looking
statements as a result of the risk factors.
For more information,
please contact:
|
|
In China:
|
|
|
|
Ms. Maggie
Huang
|
|
Investor Relations
Manager
|
|
Phone:
+86-10-6852-2612
|
|
Email:
fuweiIR@fuweifilms.com
|
|
|
|
In the U.S.:
|
|
|
|
Ms. Leslie
Wolf-Creutzfeldt
|
|
Investor
Relations
|
|
Grayling
|
|
Phone:
+1-646-284-9472
|
|
Email: leslie.wolf-creutzfeldt@grayling.com
|
|
|
FUWEI FILMS
(HOLDINGS) CO., LTD. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
AS
OF SEPTEMBER
30, 2010 AND DECEMBER
31, 2009
(amounts in
thousands except share and per share value)
|
|
|
|
September
30,
2010
|
|
December
31,
2009
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
RMB
|
US$
|
|
RMB
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
93,362
|
13,939
|
|
26,804
|
|
Restricted cash
|
|
8,583
|
1,281
|
|
12,541
|
|
Accounts and bills
receivable, net
|
|
42,659
|
6,369
|
|
28,785
|
|
Inventories
|
|
32,028
|
4,782
|
|
45,039
|
|
Advance to
suppliers
|
|
16,191
|
2,417
|
|
3,956
|
|
Prepayments and other
receivables
|
1,759
|
263
|
|
957
|
|
Deferred tax assets -
current
|
|
2,569
|
384
|
|
1,198
|
|
Total current
assets
|
|
197,152
|
29,435
|
|
119,282
|
|
|
|
|
|
|
|
|
Plant, properties and
equipment, net
|
|
294,372
|
43,949
|
|
318,600
|
|
Construction in
progress
|
|
235,955
|
35,227
|
|
237,118
|
|
Lease prepayments,
net
|
|
21,155
|
3,158
|
|
21,548
|
|
Advanced to suppliers -
Long Term
|
|
-
|
-
|
|
2,367
|
|
Goodwill
|
|
10,276
|
1,534
|
|
10,276
|
|
Deposit
|
|
16,760
|
2,502
|
|
21,000
|
|
Deferred tax assets - non
current
|
|
1,963
|
293
|
|
5,318
|
|
|
|
|
|
|
|
|
Total assets
|
|
777,633
|
116,098
|
|
735,509
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
Current
liabilities
|
|
|
|
|
|
|
Short-term
borrowings
|
|
137,000
|
20,454
|
|
153,179
|
|
Accounts
payables
|
|
22,229
|
3,319
|
|
25,898
|
|
Advance from
customers
|
|
42,251
|
6,308
|
|
12,608
|
|
Accrued expenses and other
payables
|
14,056
|
2,098
|
|
6,981
|
|
|
|
215,536
|
32,179
|
|
198,666
|
|
Long-term loan
|
|
35,000
|
5,225
|
|
25,000
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
250,536
|
37,404
|
|
223,666
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Registered capital(of
US$0.129752 par value; 20,000,000 shares authorized; 13,062,500
issued and outstanding)
|
|
13,322
|
1,989
|
|
13,323
|
|
Additional paid-in
capital
|
|
311,896
|
46,565
|
|
311,907
|
|
Statutory
reserve
|
|
29,338
|
4,380
|
|
29,338
|
|
Retained
earnings
|
|
171,251
|
25,567
|
|
156,006
|
|
Cumulative translation
adjustment
|
|
1,109
|
166
|
|
993
|
|
Total shareholders'
equity
|
|
526,916
|
78,667
|
|
511,567
|
|
Non-controlling
interest
|
|
182
|
27
|
|
276
|
|
Total equity
|
|
527,098
|
78,694
|
|
511,843
|
|
Total liabilities and
equity
|
|
777,633
|
116,098
|
|
735,509
|
|
|
|
|
|
|
|
|
|
FUWEI FILMS
(HOLDINGS) CO., LTD. AND
SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME AND OTHER
COMPREHENSIVE
INCOME
FOR THE
THREE AND NINE-MONTH PERIODS
ENDED SEPTEMBER
30, 2010 AND
2009
(amounts in
thousands except share and per share value)
(UNAUDITED)
|
|
|
|
The Three
Months
|
|
The Nine
Months
|
|
|
|
Period
Ended
September 30,2010
|
|
Period
Ended
September
30,2009
|
|
Period
Ended
September 30,2010
|
|
Period
Ended
September
30,2009
|
|
|
|
RMB
|
US$
|
|
RMB
|
|
RMB
|
US$
|
|
RMB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
129,174
|
19,285
|
|
89,603
|
|
327,948
|
48,961
|
|
236,691
|
|
Cost of sales
|
|
(88,658)
|
(13,236)
|
|
(81,749)
|
|
(254,996)
|
(38,070)
|
|
(220,490)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
40,515
|
6,049
|
|
7,854
|
|
72,952
|
10,891
|
|
14,201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
(4,389)
|
(655)
|
|
(2,868)
|
|
(11,944)
|
(1,783)
|
|
(10,499)
|
|
Administrative
expenses
|
|
(17,992)
|
(2,686)
|
|
(4,170)
|
|
(38,417)
|
(5,736)
|
|
(20,241)
|
|
Total operating
expenses
|
|
(22,381)
|
(3,341)
|
|
(7,038)
|
|
(50,361)
|
(7,519
|
|
(30,740)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income/(loss)
|
|
18,143
|
2,707
|
|
816
|
|
22,591
|
3,373
|
|
(16,539)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income/(expense)
|
|
|
|
|
|
|
|
|
|
|
|
- Interest
income
|
|
42
|
6
|
|
5
|
|
214
|
32
|
|
148
|
|
- Interest
expense
|
|
(2,337)
|
(349)
|
|
(2,091)
|
|
(6,624)
|
(989)
|
|
(6,210)
|
|
- Others income,
net
|
|
(245)
|
(37)
|
|
3,547
|
|
(381)
|
(57)
|
|
(335)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other
income/(expense)
|
|
(2,540)
|
(379)
|
|
1,461
|
|
(6,791)
|
(1,014)
|
|
(6,398)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income tax
benefit/(expense)
|
|
15,594
|
2,328
|
|
2,277
|
|
15,800
|
2,359
|
|
(22,937)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
benefit/(expense)
|
|
(578)
|
(86)
|
|
(264)
|
|
(555)
|
(83)
|
|
3,440
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income/(loss)
|
|
15,017
|
2,242
|
|
2,013
|
|
15,245
|
2,276
|
|
(19,497)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income/(loss)
attributable to noncontrolling interests
|
|
(26)
|
(4)
|
|
(5)
|
|
(95)
|
(14)
|
|
(5)
|
|
Net income/(loss)
attributable to the Company
|
|
15,043
|
2,246
|
|
2,018
|
|
15,340
|
2,290
|
|
(19,492)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
- Foreign currency
translation adjustments
|
|
132
|
19
|
|
2
|
|
116
|
17
|
|
614
|
|
Comprehensive
income
|
|
15,174
|
2,265
|
|
2,020
|
|
15,456
|
2,307
|
|
(18,877)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic
and diluted
|
|
1.15
|
0.17
|
|
0.15
|
|
1.17
|
0.18
|
|
(1.49)
|
|
Weighted average number
ordinary shares,
Basic and diluted
|
|
13,062,500
|
13,062,500
|
|
13,062,500
|
|
13,062,500
|
13,062,500
|
|
13,062,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FUWEI FILMS
(HOLDINGS) CO., LTD. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR
THE NINE-MONTH PERIODS
ENDED SEPTEMBER
30, 2010 AND
2009
(amounts in
thousands except share and per share value)
(UNAUDITED)
|
|
|
|
Periods
Ended September 30, 2010
|
|
Periods
Ended September 30, 2009
|
|
|
|
RMB
|
US$
|
|
RMB
|
|
Cash flow
from operating activities
|
|
|
|
|
|
|
Net income
|
|
15,245
|
2,276
|
|
(19,492)
|
|
Adjustments to reconcile
net income to net cash
|
|
|
|
|
|
|
(used in)/provided by operating
activities
|
|
|
|
|
|
|
- Depreciation of property,
plant and equipment
|
|
26,763
|
3,996
|
|
25,732
|
|
- Amortization of intangible
assets
|
|
340
|
51
|
|
340
|
|
- Deferred income
taxes
|
|
1,942
|
290
|
|
-
|
|
- Bad debt
expense/(recovery)
|
|
9,138
|
1,364
|
|
3,767
|
|
- Accounts receivable
|
|
(15,138)
|
(2,260)
|
|
11,751
|
|
- Inventories
|
|
13,011
|
1,942
|
|
(9,922)
|
|
- Advance to
suppliers
|
|
(16,236)
|
(2,424)
|
|
(1,070)
|
|
- Prepaid expenses and other
current assets
|
|
(487)
|
(73)
|
|
(6,437)
|
|
- Accounts payable
|
|
(3,656)
|
(546)
|
|
5,707
|
|
- Accrued expenses and other
payables
|
|
7,236
|
1,080
|
|
(1,352)
|
|
- Advance from
customers
|
|
29,643
|
4,426
|
|
7,791
|
|
- Tax payable
|
|
(38)
|
(6)
|
|
(6,101)
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
67,762
|
10,117
|
|
10,716
|
|
|
|
|
|
|
|
|
Cash flow
from investing activities
|
|
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
(2,482)
|
(371)
|
|
(93,091)
|
|
Restricted cash related to
trade finance
|
|
3,952
|
590
|
|
(400)
|
|
Advanced to suppliers -
non current
|
|
2,367
|
353
|
|
-
|
|
Addition to construction
in progress
|
|
1,163
|
174
|
|
83,469
|
|
|
|
|
|
|
|
|
Net cash used in investing
activities
|
|
5,000
|
747
|
|
(10,023)
|
|
|
|
|
|
|
|
|
Cash flow
from financing activities
|
|
|
|
|
|
|
Principal payments of
short-term bank loans
|
|
(16,179)
|
(2,415)
|
|
(11,585)
|
|
Proceeds from short-term
bank loans
|
|
10,000
|
1,493
|
|
10,000
|
|
|
|
|
|
|
|
|
Net cash (used
in)/provided by financing activities
|
|
(6,179)
|
(923)
|
|
(1,585)
|
|
|
|
|
|
|
|
|
Effect of foreign exchange
rate changes
|
|
(26)
|
72
|
|
892
|
|
|
|
|
|
|
|
|
Net increase (decrease) in
cash and cash equivalent
|
|
66,557
|
10,013
|
|
(1)
|
|
|
|
|
|
|
|
|
Cash and cash
equivalent
|
|
|
|
|
|
|
At beginning of
period/year
|
|
26,804
|
3,926
|
|
15,823
|
|
At end of
period/year
|
|
93,362
|
13,939
|
|
15,822
|
|
|
|
|
|
|
|
|
SUPPLEMENTARY
DISCLOSURE:
|
|
|
|
|
|
|
Interest paid
|
|
6,624
|
989
|
|
5,991
|
|
Income tax paid
|
|
3,966
|
592
|
|
-
|
|
|
|
|
|
|
|
|
|
SOURCE Fuwei Films (Holdings) Co., Ltd.