BEIJING, May 21, 2013 /PRNewswire/ -- 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 first quarter of
2013 ended March 31, 2013.
Highlights
- Revenues were RMB76.6 million
(US$12.3 million), compared with
RMB91.0 million in the same period of
2012.
- Net cash used in operating activities was RMB3.3 million (US$0.5
million), compared with net cash provided by operating
activities of RMB45.9 million in the
same period of 2012.
- Basic and diluted net loss per share was RMB1.38 (US$0.22),
compared with basic and diluted net loss per share of RMB1.16 in the same period of 2012.
- Our third production line is still under trial operation.
Although the products from this production line have yet to meet
the specifications and quality standards specified in the client's
orders on a consistent basis, it has produced some commodity thick
films of thickness from 38μm to 250μm, and we are producing some
sample diffusion films (a type of TFT-LCD optical film) at 188μm at
the request of our clients. We will continue to conduct
commissioning and testing to address any possible issues and
develop new products during the trial operation.
Mr. Xiaoan He, Chairman and CEO
of Fuwei Films, said, "We are still facing strong competition
arising from increased supply over demand in the market which is
impacting our quarterly results. However, I am pleased to report
that our progress with the third production line is on track. We
hope we can increase our revenue by accelerating R & D of
low-end and high-end TFT-LCD optical films on the third production
line."
First Quarter of 2013 Results
Net sales during the first quarter ended March 31, 2013 were RMB76.6 million (US$12.3
million), compared to RMB91.0
million, during the same period in 2012, representing a
decrease of RMB14.4 million or 15.8%,
mainly due to the reduction of average sales price by 1.3% arising
from stronger competition in China
and decrease of total sales volumes by 14.8%.
Overseas sales were RMB12.6
million or US$2.0 million, or
16.5% of total revenues, compared with RMB16.3 million or 17.9% of total revenues in the
first quarter of 2012. The increase of average sales price caused
an increase of RMB0.5 million and the
decrease in sales volume resulted in a decrease of RMB4.2 million. The decrease in overseas sales
was mainly due to the lower demand from international markets and
enhanced competition as well as anti-dumping measures taken by the
USA and South Korea, which led to a decrease in orders
from the overseas markets compared to the same period of 2012.
The following is a breakdown of domestic versus overseas sales
for the three-month periods ended March 31,
2013 and 2012 (amounts in thousands except percentages):
|
|
Three-Month Period
Ended
|
|
|
March 31,
2013
|
% of Total
|
March 31,
2012
|
% of Total
|
|
|
RMB
|
US$
|
RMB
|
Sales in
China
|
|
63,979
|
10,301
|
83.5%
|
74,700
|
82.1%
|
Sales in other
countries
|
|
12,598
|
2,029
|
16.5%
|
16,311
|
17.9%
|
|
|
|
|
|
|
|
Total
|
|
76,577
|
12,330
|
100.0%
|
91,011
|
100.0%
|
Gross loss was RMB1.2 million
(US$0.2 million) for the first
quarter ended March 31, 2013,
representing a gross margin of negative 1.6%, as compared to a
gross margin of negative 3.3% for the same period in 2012.
Correspondingly, gross profit rate increased by 1.7 percentage
points compared to the same period in 2012. Our average product
sales prices decreased by 1.3% compared to the same period last
year while the average cost of goods sold decreased by 17.3%
compared to the same period last year. Consequently, the decrease
in cost of goods sold largely exceeded that in sales revenue during
the first quarter ended March 31,
2013 compared with the same period in 2012, which
contributed to the increase in our gross profit margin.
Operating expenses for the first quarter ended March 31, 2013 were RMB13.7 million (US$2.2
million), which was RMB3.3
million, or 31.7% higher than the same period in 2012. This
increase was mainly due to increased R&D expenditure in the
first quarter ended March 31,
2013.
Net loss attributable to the Company during the first quarter
ended March 31, 2013 was RMB18.1 million (US$2.9
million) compared to net loss attributable to the Company of
RMB15.1 million during the same
period in 2012, representing an increase of RMB3.0 million.
Basic and diluted net loss per share was RMB1.38 (US$0.22),
compared with basic and diluted net loss per share of RMB1.16 in the first quarter of 2012.
Total shareholders' equity was RMB501.2
million (US$80.7 million) as
of March 31, 2013, compared with
RMB519.2 million as of December 31, 2012.
As of March 31, 2013, the Company
had 13,062,500 basic and diluted total ordinary shares
outstanding.
Conference Call Information
The Company will host a teleconference on Wednesday, May 22, 2013, at 9:00 a.m. EDT / 9:00
p.m. Beijing time to
discuss the financial 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 Conference ID: 41461. The replay will be available
until June 22, 2013, 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'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 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:
Miss Lysander Lee
Investor Relations Officer
Phone: +86-133-615-59266
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
Financial Tables to Follow
FUWEI FILMS
(HOLDINGS) CO., LTD. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31,
2013 AND DECEMBER 31, 2012
(amounts in
thousands except share and per share value)
(Unaudited)
|
|
|
March 31,
2013
|
|
December 31,
2012
|
|
RMB
|
US$
|
|
RMB
|
ASSETS
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
29,938
|
4,820
|
|
5,006
|
Restricted
cash
|
|
48,827
|
7,862
|
|
21,457
|
Accounts and bills
receivable, net
|
|
14,177
|
2,283
|
|
21,587
|
Inventories
|
|
49,004
|
7,890
|
|
34,291
|
Advance to
suppliers
|
|
4,693
|
756
|
|
13,543
|
Prepayments and other
receivables
|
|
30,158
|
4,856
|
|
26,174
|
Deferred tax assets -
current
|
|
1,913
|
308
|
|
1,857
|
Total current
assets
|
|
178,710
|
28,775
|
|
123,915
|
|
|
|
|
|
|
Plant, properties and
equipment, net
|
|
221,351
|
35,640
|
|
233,335
|
Construction in
progress
|
|
326,722
|
52,605
|
|
337,990
|
Lease prepayments,
net
|
|
19,392
|
3,122
|
|
19,523
|
Advance to suppliers
- long term, net
|
|
6,333
|
1,020
|
|
5,299
|
Long-term
deposit
|
|
16,760
|
2,699
|
|
16,760
|
Other
Assets
|
|
13,393
|
2,156
|
|
262
|
Deferred tax assets -
non current
|
|
10,431
|
1,679
|
|
10,466
|
|
|
|
|
|
|
Total
assets
|
|
793,092
|
127,696
|
|
747,550
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
Current
liabilities
|
|
|
|
|
|
Short-term
borrowings
|
|
112,032
|
18,038
|
|
110,000
|
Accounts
payables
|
|
30,054
|
4,839
|
|
28,796
|
Notes
payable
|
|
92,072
|
14,824
|
|
38,299
|
Advance from
customers
|
|
15,098
|
2,431
|
|
11,714
|
Accrued expenses and
other payables
|
7,082
|
1,140
|
|
6,831
|
Obligations under
capital leases-current
|
|
8,061
|
1,298
|
|
6,282
|
Total current
liabilities
|
|
264,399
|
42,570
|
|
201,922
|
|
|
|
|
|
|
Obligations under
capital leases
|
|
14,848
|
2,391
|
|
13,718
|
Long-term
loan
|
|
10,000
|
1,610
|
|
10,000
|
Deferred tax
liabilities
|
|
3,474
|
559
|
|
3,476
|
|
|
|
|
|
|
Total
liabilities
|
|
292,721
|
47,130
|
|
229,116
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Registered capital(of
US$0.129752 par value; 20,000,000 shares authorized; 13,062,500
issued and outstanding)
|
|
13,323
|
2,145
|
|
13,323
|
Additional paid-in
capital
|
|
311,907
|
50,220
|
|
311,907
|
Statutory
reserve
|
|
37,441
|
6,028
|
|
37,441
|
Retained
earnings
|
|
137,265
|
22,101
|
|
155,341
|
Cumulative
translation adjustment
|
|
1,233
|
200
|
|
1,222
|
Total
shareholders' equity
|
|
501,169
|
80,694
|
|
519,234
|
Non-controlling
interest
|
|
(798)
|
(128)
|
|
(800)
|
Total
equity
|
|
500,371
|
80,566
|
|
518,434
|
Total liabilities
and equity
|
|
793,092
|
127,696
|
|
747,550
|
FUWEI FILMS
(HOLDINGS) CO., LTD. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
FOR THE
THREE-MONTH PERIOD ENDED MARCH 31, 2013 AND 2012
(amounts in thousands
except share and per share value)
(Unaudited)
|
|
|
The Three-Month
Period Ended March 31,
|
|
|
2013
|
|
2012
|
|
RMB
|
US$
|
|
RMB
|
Net sales
|
|
76,577
|
12,330
|
|
91,011
|
Cost of
sales
|
|
77,768
|
12,521
|
|
94,037
|
|
|
|
|
|
|
Gross loss
|
|
(1,191)
|
(191)
|
|
(3,026)
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
Selling
expenses
|
|
4,345
|
700
|
|
4,086
|
Administrative
expenses
|
|
9,306
|
1,498
|
|
6,348
|
Total operating
expenses
|
|
13,651
|
2,198
|
|
10,434
|
|
|
|
|
|
|
Operating
loss
|
|
(14,842)
|
(2,389)
|
|
(13,460)
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
- Interest
income
|
|
61
|
10
|
|
658
|
- Interest
expense
|
|
(3,217)
|
(518)
|
|
(2,725)
|
- Others (expense)
income, net
|
|
(101)
|
(16)
|
|
427
|
|
|
|
|
|
|
Total other
expense
|
|
(3,257)
|
(524)
|
|
(1,640)
|
|
|
|
|
|
|
Loss before
provision for income taxes
|
|
(18,099)
|
(2,913)
|
|
(15,100)
|
|
|
|
|
|
|
Income tax benefit
(expense)
|
|
23
|
4
|
|
(31)
|
|
|
|
|
|
|
Net
loss
|
|
(18,076)
|
(2,909)
|
|
(15,131)
|
|
|
|
|
|
|
Net loss attributable
to non-controlling interests
|
|
-
|
-
|
|
(3)
|
Net loss attributable
to the Company
|
|
(18,076)
|
(2,909)
|
|
(15,128)
|
|
|
|
|
|
|
Other comprehensive
income
|
|
|
|
|
|
- Foreign currency
translation adjustments attributable to non-controlling
interest
|
|
2
|
-
|
|
-
|
- Foreign currency
translation adjustments attributable to the Company
|
|
11
|
2
|
|
(8)
|
|
|
|
|
|
|
Comprehensive income
(loss) attributable to non-controlling interest
|
|
2
|
0
|
|
(3)
|
Comprehensive (loss)
income attribute to the Company
|
|
(18,065)
|
(2,907)
|
|
(15,136)
|
|
|
|
|
|
|
Loss per share,
Basic and diluted
|
|
(1.38)
|
(0.22)
|
|
(1.16)
|
Weighted average
number ordinary shares,
Basic and 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-MONTH PERIOD ENDED MARCH 31, 2013 AND 2012
(amounts in thousands
except share and per share value)
(Unaudited)
|
|
|
The Three-Month
Period Ended March 31,
|
|
|
2013
|
|
2012
|
|
|
RMB
|
US$
|
|
RMB
|
Cash flow from
operating activities
|
|
|
|
|
|
Net loss
|
|
(18,076)
|
(2,909)
|
|
(15,131)
|
Adjustments to
reconcile net loss to net cash
|
|
|
|
|
|
(used in)provided by
operating activities
|
|
|
|
|
|
- Depreciation of
property, plant and equipment
|
|
12,197
|
1,964
|
|
12,186
|
- Amortization of
intangible assets
|
|
131
|
21
|
|
113
|
- Deferred income
taxes
|
|
(23)
|
(4)
|
|
31
|
- Bad debt
expense
|
|
376
|
61
|
|
14
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
- Accounts and bills
receivable
|
|
7,035
|
1,133
|
|
34,682
|
-
Inventories
|
|
(14,714)
|
(2,369)
|
|
(1,641)
|
- Advance to
suppliers
|
|
8,850
|
1,425
|
|
(3,201)
|
- Prepaid expenses
and other current assets
|
|
(1,379)
|
(222)
|
|
19,129
|
- Accounts
payable
|
|
1,258
|
203
|
|
(1,926)
|
- Accrued expenses
and other payables
|
|
264
|
43
|
|
407
|
- Advance from
customers
|
|
3,385
|
545
|
|
1,511
|
- Tax
payable
|
|
(2,605)
|
(420)
|
|
(234)
|
|
|
|
|
|
|
Net cash (used in)
provided by operating activities
|
|
(3,301)
|
(529)
|
|
45,940
|
|
|
|
|
|
|
Cash flow from
investing activities
|
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(213)
|
(34)
|
|
(91)
|
Restricted cash
related to trade finance
|
|
(27,371)
|
(4,407)
|
|
(8,016)
|
Advanced to suppliers
- non current
|
|
(1,034)
|
(166)
|
|
271
|
Amount change in
construction in progress
|
|
(1,862)
|
(300)
|
|
(3,916)
|
|
|
|
|
|
|
Net cash (used in)
investing activities
|
|
(30,480)
|
(4,907)
|
|
(11,752)
|
|
|
|
|
|
|
Cash flow from
financing activities
|
|
|
|
|
|
Principal payments of
short-term bank loans
|
|
-
|
-
|
|
(20,000)
|
Proceeds from
short-term bank loans
|
|
2,032
|
327
|
|
-
|
Payment of capital
lease obligation
|
|
(2,091)
|
(337)
|
|
-
|
Change in notes
payable
|
|
53,773
|
8,658
|
|
6,510
|
Proceeds from
sale-leaseback equipment
|
|
5,000
|
805
|
|
-
|
|
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
|
58,714
|
9,453
|
|
(13,490)
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes
|
|
(1)
|
(1)
|
|
(10)
|
|
|
|
|
|
|
Net increase in cash
and cash equivalent
|
|
24,932
|
4,016
|
|
20,688
|
|
|
|
|
|
|
Cash and cash
equivalent
|
|
|
|
|
|
At beginning of
period/year
|
|
5,006
|
804
|
|
44,172
|
At end of
period/year
|
|
29,938
|
4,820
|
|
64,860
|
|
|
|
|
|
|
SUPPLEMENTARY
DISCLOSURE:
|
|
|
|
|
|
Interest
paid
|
|
3,217
|
518
|
|
2,725
|
Income tax
paid
|
|
-
|
-
|
|
-
|
|
|
|
|
|
|
SUPPLEMENTARY
SCHEDULE OF NONCASH INVESTING AND FINANCIAL
ACTIVITIES:
|
Account payable for
plant and equipment:
|
|
5,053
|
814
|
|
-
|
Obligations for
acquired equipment under capital lease:
|
|
22,909
|
3,689
|
|
-
|
SOURCE Fuwei Films