BEIJING, Nov. 16, 2010 /PRNewswire-Asia-FirstCall/ --
Fuwei Films (Holdings) Co., Ltd. (Nasdaq: FFHL), a manufacturer and
distributor of high-quality plastic films, today announced that the
price of PET (polyethylene glycol terephthalate), the main raw
material for BOPET films manufactured by its wholly owned
subsidiary Shandong Fuwei Films Co., Ltd. ("Shandong Fuwei"), is
experiencing a sharp rise and if the increase is not fully borne by
its clients in the retail prices of its products, this will have a
negative impact on its operating income.
The company predicts that the lustrous PET price in November
will increase by 25-30% compared to that in October and 40-45%
higher than that in September.
Mr. He Xiaoan, CEO of Fuwei Films, said, "We are closely
monitoring the sharp rise in PET raw material prices and we will
take appropriate steps to handle the situation. If the increase can
not be fully borne by FFHL clients in their products' retail
prices, this will have a negative impact on operating income. We
anticipate that PET prices could return to lower levels in the near
future."
In the first nine months, the raw materials costs amounted to
75% of the total costs.
About Fuwei Films
Fuwei Films conducts its business through its wholly owned
subsidiary Shandong Fuwei Films Co., Ltd. ("Shandong Fuwei")
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.
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 are 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 some of which are 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. 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 further information, please
contact:
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In China:
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Maggie Huang
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Investor Relations
Manager
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Phone:
+86-10-6852-2612
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Email: fuweiIR@fuweifilms.com
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In the U.S.:
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Leslie
Wolf-Creutzfeldt
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Investor Relations
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Graying
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Tel:
+1-646-284-9472
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Email: leslie.wolf-creutzfeldt@grayling.com
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SOURCE Fuwei Films (Holdings) Co., Ltd.