BEIJING, Aug. 20, 2015 /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 second quarter
ended June 30, 2015.
Second Quarter 2015 Financial Highlights
- Net sales during the second quarter ended June 30, 2015 were RMB66.7
million or US$10.8
million.
- Sales of specialty films accounted for 31.9% of revenues.
- Overseas sales accounted for 22.7% of revenues.
Mr. Zengyong Wang, Chairman and CEO of Fuwei Films, commented,
"We continue to face strong competition from emerging and incumbent
players which has created oversupply relative to demand in the
marketplace. While this has impacted the Company's quarterly
financial results, we intend to capitalize upon opportunities in
international markets. We believe that our focus on continued
innovation and R&D will enable the Company to expand end-user
applications and we are encouraged by this positive trend as we
expect this to enable us to weather different industry and economic
conditions in the periods ahead."
Second Quarter of 2015 Financial Results
Net sales during the second quarter ended June 30, 2015 were RMB66.7
million or US$10.8 million,
compared to RMB70.0 million during
the same period in 2014, representing a decrease of RMB3.3 million or 4.7%, mainly due to the
reduction of average sales price by 7.2% arising from stronger
competition in China and a 13.9%
reduction in prices of main raw materials. The reduction of average
sales price caused a decrease of RMB5.2
million and the sales volume increase caused an increase of
RMB1.9 million.
In the second quarter of 2015, sales of specialty films were
RMB21.3 million or US$3.4 million representing 31.9% of our total
revenues as compared to RMB16.6
million or 23.7% in the same period of 2014, which was an
increase of RMB4.7 million, or 28.3%
as compared to the same period in 2014. The reduction of average
sales price caused a decrease of RMB1.5
million and the increase in the sales volume caused an
increase of RMB6.2 million. The
increase was largely attributable to the increase in sales
volume.
Overseas sales were RMB15.1
million or US$2.4 million, or
22.7% of total revenues, compared with RMB1.1 million or 15.9% of total revenues in the
second quarter of 2014. The decrease of average sales price caused
a decrease of RMB2.1 million and the
increase in sales volume resulted in an increase of RMB6.1 million. The increase in overseas sales
was mainly due to the increase in sales volume.
The following is a breakdown of PRC domestic and overseas sales
(amounts in thousands):
|
|
Three-Month
Period Ended
June 30, 2015
|
% of Total
|
Three-Month
Period Ended
June 30, 2014
|
|
|
|
RMB
|
US$
|
RMB
|
% of Total
|
Sales in
China
|
|
51,589
|
8,321
|
77.3%
|
58,873
|
84.1%
|
Sales in other
countries
|
|
15,120
|
2,439
|
22.7%
|
11,111
|
15.9%
|
|
|
|
|
|
|
|
|
|
66,709
|
10,760
|
100.0%
|
69,984
|
100.0%
|
Our gross profit was RMB0.3
million or US$0.04 million for
the second quarter ended June 30,
2015, representing a gross margin of 0.4%, as compared to a
gross loss margin of 13.6% for the same period in 2014.
Correspondingly, gross margin increased by 14 percentage point
compared to the same period in 2014. Our average product sales
prices decreased by 7.2% compared to the same period last year
while the average cost of goods sold decreased by 18.6% compared to
the same period last year. Consequently, the amount of decrease in
cost of goods sold was larger than that in sales revenue during the
second quarter ended June 30, 2015
compared with the same period in 2014, which resulted in an
increase in our gross profit.
Operating expenses for the second quarter ended June 30, 2015 were RMB13.0
million or US$2.1 million, as
compared to RMB10.4 million for the
same period in 2014, which was RMB2.6
million, or 25.0% higher than the same period in 2014. This
increase was mainly due to depreciation charged to general and
administrative expenses in the accounting period in which they are
incurred as a result of lack of manufacturing from the third
production line in May and June of2015.
Net loss attributable to the Company during the second quarter
ended June 30, 2015 was RMB14.7 million or US$2.4
million compared to net loss attributable to the Company of
RMB23.0 million during the same
period in 2014, representing a decrease of RMB8.3 million for the same period in 2014.
Basic and diluted net loss per share was RMB1.12 or US$0.18
and RMB1.76 for the three months
period ended June 30, 2015 and 2014,
respectively.
Total shareholders' equity was RMB359.2
million or US$57.9 million as
of June 30, 2015, compared with
RMB388.9 million as of December 31, 2014.
As of June 30, 2015, the Company
had 13,062,500 basic and diluted total ordinary shares
outstanding.
Conference Call Information
The Company will host a teleconference on Friday, August 21, 2015, 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 access codes: Account#: 286 and Conference ID:
13617384. The replay will be available until September 21, 2015, 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'sBOPET 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 trends affecting the
global economy, including the devaluation of the RMB by
China in August 2015; 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. Xiaoli Yu
Investor Relations Officer
Phone: +86-133-615-59266
Email: fuweiIR@fuweifilms.com
In the U.S.:
Ms. Vivian Chen
Investor Relations
Grayling
Phone: +1-646-284-9427
Email: vivian.chen@grayling.com
Financial Tables to Follow
FUWEI FILMS
(HOLDINGS) CO., LTD. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
AS OF JUNE 30,
2015 AND DECEMBER 31, 2014
|
(amounts in thousands
except share and per share value)
|
(Unaudited)
|
|
|
|
|
|
|
|
June 30,
2015
|
|
December 31,
2014
|
|
RMB
|
US$
|
|
RMB
|
ASSETS
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
10,871
|
1,753
|
|
9,020
|
Restricted
cash
|
|
42,220
|
6,810
|
|
48,085
|
Accounts and bills
receivable, net
|
|
16,229
|
2,618
|
|
9,867
|
Inventories
|
|
28,244
|
4,555
|
|
24,034
|
Advance to
suppliers
|
|
5,160
|
832
|
|
7,512
|
Prepayments and other
receivables
|
|
20,706
|
3,340
|
|
18,772
|
Deferred tax assets -
current
|
|
1,802
|
291
|
|
2,794
|
Total current
assets
|
|
125,232
|
20,199
|
|
120,084
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
459,549
|
74,121
|
|
482,534
|
Construction in
progress
|
|
1,096
|
177
|
|
366
|
Lease prepayments,
net
|
|
18,144
|
2,926
|
|
18,406
|
Advance to suppliers
- long term, net
|
|
1,272
|
205
|
|
722
|
Long-term
deposit
|
|
-
|
-
|
|
16,760
|
Other
Assets
|
|
12,054
|
1,944
|
|
12,500
|
Deferred tax assets -
non current
|
|
21,414
|
3,454
|
|
21,573
|
|
|
|
|
|
|
Total
assets
|
|
638,761
|
103,026
|
|
672,945
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
Current
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Long-term loan,
current portion
|
|
3,350
|
540
|
|
3,350
|
Due to related
parties
|
|
139,734
|
22,538
|
|
125,938
|
Accounts
payables
|
|
27,046
|
4,362
|
|
29,484
|
Notes
payable
|
|
81,626
|
13,165
|
|
95,539
|
Advance from
customers
|
|
6,236
|
1,006
|
|
3,392
|
Accrued expenses and
other payables
|
7,467
|
1,204
|
|
6,095
|
Obligations under
capital leases-current
|
|
4,196
|
677
|
|
8,259
|
Total current
liabilities
|
|
269,655
|
43,492
|
|
272,057
|
|
|
|
|
|
|
Obligations under
capital leases
|
|
-
|
-
|
|
303
|
Long-term
loan
|
|
4,975
|
802
|
|
6,650
|
Deferred tax
liabilities
|
|
5,709
|
921
|
|
5,816
|
|
|
|
|
|
|
Total
liabilities
|
|
280,339
|
45,215
|
|
284,826
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Registered capital(of
US$0.129752 par value;
20,000,000 shares authorized; 13,062,500 issued and
outstanding)
|
|
13,323
|
2,149
|
|
13,323
|
Additional paid-in
capital
|
|
311,907
|
50,308
|
|
311,907
|
Statutory
reserve
|
|
37,441
|
6,039
|
|
37,441
|
(Accumulated
deficit) retained earnings
|
|
(4,605)
|
(743)
|
|
25,043
|
Cumulative
translation adjustment
|
|
1,150
|
186
|
|
1,199
|
Total
shareholders' equity
|
|
359,216
|
57,939
|
|
388,913
|
Non-controlling
interest
|
|
(794)
|
(128)
|
|
(794)
|
Total
equity
|
|
358,422
|
57,811
|
|
388,119
|
Total liabilities
and equity
|
|
638,761
|
103,026
|
|
672,945
|
FUWEI FILMS
(HOLDINGS) CO., LTD. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(LOSS)
|
FOR THE THREE- AND
SIX-MONTH PERIODS ENDED JUNE 30, 2015 AND 2014
|
(amounts in thousands
except share and per share value)
|
(Unaudited)
|
|
|
|
|
|
|
The Three-Month
Period Ended June 30,
|
The Six-Month
Period Ended June 30,
|
|
|
2015
|
|
2014
|
2015
|
|
2014
|
|
RMB
|
US$
|
|
RMB
|
RMB
|
US$
|
|
RMB
|
Net sales
|
|
66,709
|
10,760
|
|
69,984
|
119,485
|
19,272
|
|
140,689
|
Cost of
sales
|
|
66,422
|
10,713
|
|
79,482
|
127,023
|
20,488
|
|
150,256
|
|
|
|
|
|
|
|
|
|
|
Gross margin
(loss)
|
|
287
|
47
|
|
(9,498)
|
(7,538)
|
(1,216)
|
|
(9,567)
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
3,157
|
509
|
|
3,430
|
6,353
|
1,025
|
|
6,789
|
Administrative
expenses
|
|
9,877
|
1,593
|
|
7,004
|
15,490
|
2,498
|
|
14,058
|
Total operating
expenses
|
|
13,034
|
2,102
|
|
10,434
|
21,843
|
3,523
|
|
20,847
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(12,747)
|
(2,055)
|
|
(19,932)
|
(29,381)
|
(4,739)
|
|
(30,414)
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
- Interest
income
|
|
218
|
35
|
|
260
|
738
|
119
|
|
640
|
- Interest
expense
|
|
(2,082)
|
(336)
|
|
(3,256)
|
(4,413)
|
(712)
|
|
(6,424)
|
- Others income
(expense), net
|
|
(32)
|
(5)
|
|
25
|
4,452
|
718
|
|
(63)
|
|
|
|
|
|
|
|
|
|
|
Total other income
(expense)
|
|
(1,896)
|
(306)
|
|
(2,971)
|
777
|
125
|
|
(5,847)
|
|
|
|
|
|
|
|
|
|
|
Loss before provision
for income taxes
|
|
(14,643)
|
(2,361)
|
|
(22,903)
|
(28,604)
|
(4,614)
|
|
(36,261)
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit
(expense)
|
|
(8)
|
(1)
|
|
(79)
|
(1,044)
|
(168)
|
|
20
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(14,651)
|
(2,362)
|
|
(22,982)
|
(29,648)
|
(4,782)
|
|
(36,241)
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to
noncontrolling interests
|
|
-
|
-
|
|
(1)
|
-
|
-
|
|
(1)
|
Net loss attributable
to the
Company
|
|
(14,651)
|
(2,362)
|
|
(22,981)
|
(29,648)
|
(4,782)
|
|
(36,240)
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
- Foreign currency
translation
adjustments attributable to noncontrolling interest
|
|
-
|
-
|
|
1
|
-
|
-
|
|
(19)
|
- Foreign currency
translation
adjustments attributable to the Company
|
|
(25)
|
(4)
|
|
(7)
|
(49)
|
(8)
|
|
(55)
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss)
attributable to non-controlling
interest
|
|
-
|
-
|
|
-
|
-
|
-
|
|
(20)
|
Comprehensive loss
attributable to the Company
|
|
(14,676)
|
(2,366)
|
|
(22,988)
|
(29,697)
|
(4,790)
|
|
(36,295)
|
|
|
|
|
|
|
|
|
|
|
Loss per share,
Basic and diluted
|
|
(1.12)
|
(0.18)
|
|
(1.76)
|
(2.27)
|
(0.37)
|
|
(2.77)
|
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 SIX-MONTH
PERIODS ENDED JUNE 30, 2015 AND 2014
|
(amounts in thousands
except share and per share value)
|
(Unaudited)
|
|
|
|
|
|
The Six-Month
Period Ended June 30,
|
|
|
2015
|
|
2014
|
|
|
RMB
|
US$
|
|
RMB
|
Cash flow from
operating activities
|
|
|
|
|
|
Net loss
|
|
(29,648)
|
(4,782)
|
|
(36,241)
|
Adjustments to
reconcile net loss to net cash
|
|
|
|
|
|
used in operating
activities
|
|
|
|
|
|
|
|
|
|
|
|
- Depreciation of
property, plant and equipment
|
|
23,076
|
3,722
|
|
24,031
|
- Amortization of
intangible assets
|
|
262
|
42
|
|
262
|
- Deferred income
taxes
|
|
1,044
|
168
|
|
(20)
|
- Bad debt
recovery
|
|
(4,135)
|
(667)
|
|
(115)
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
- Accounts and bills
receivable
|
|
(6,634)
|
(1,070)
|
|
1,150
|
-
Inventories
|
|
(4,210)
|
(679)
|
|
5,942
|
- Advance to
suppliers
|
|
2,518
|
406
|
|
109
|
- Prepaid expenses and
other current assets
|
|
12
|
2
|
|
(814)
|
- Accounts
payable
|
|
(2,439)
|
(393)
|
|
2,418
|
- Accrued expenses and
other payables
|
|
1,377
|
222
|
|
1,116
|
- Advance from
customers
|
|
2,844
|
459
|
|
(7,551)
|
- Tax
payable
|
|
(1,499)
|
(242)
|
|
2,236
|
|
|
|
|
|
|
Net cash used in
operating activities
|
|
(17,432)
|
(2,812)
|
|
(7,477)
|
|
|
|
|
|
|
Cash flow from
investing activities
|
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(91)
|
(15)
|
|
(4,823)
|
Restricted cash
related to trade finance
|
|
5,865
|
946
|
|
(357)
|
Advanced to suppliers
- non current
|
|
(550)
|
(89)
|
|
(811)
|
Amount change in
construction in progress
|
|
(730)
|
(118)
|
|
265
|
Return of long-term
deposit
|
|
21,000
|
3,387
|
|
-
|
|
|
|
|
|
|
Net cash provided by
(used in) investing activities
|
|
25,494
|
4,111
|
|
(5,726)
|
|
|
|
|
|
|
Cash flow from
financing activities
|
|
|
|
|
|
Principal payments of
bank loans
|
|
(1,675)
|
(270)
|
|
(105,000)
|
Proceeds from
short-term bank loans
|
|
-
|
-
|
|
-
|
Proceeds from related
party
|
|
13,796
|
2,225
|
|
120,000
|
Payment of capital
lease obligation
|
|
(4,366)
|
(704)
|
|
(4,090)
|
Change in notes
payable
|
|
(13,913)
|
(2,244)
|
|
(3,790)
|
Proceeds from
sale-leaseback equipment
|
|
-
|
-
|
|
-
|
|
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
|
(6,158)
|
(993)
|
|
7,120
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes
|
|
(53)
|
(7)
|
|
(17)
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalent
|
|
1,851
|
299
|
|
(6,100)
|
|
|
|
|
|
|
Cash and cash
equivalent
|
|
|
|
|
|
At beginning of
period
|
|
9,020
|
1,454
|
|
11,578
|
At end of
period
|
|
10,871
|
1,753
|
|
5,478
|
|
|
|
|
|
|
SUPPLEMENTARY
DISCLOSURE:
|
|
|
|
|
|
Interest
paid
|
|
4,413
|
712
|
|
6,424
|
Income tax
paid
|
|
-
|
-
|
|
-
|
|
|
|
|
|
|
SUPPLEMENTARY
SCHEDULE OF NONCASH INVESTING AND FINANCIAL
ACTIVITIES:
|
Account payable for
plant and equipment:
|
|
2,215
|
357
|
|
7,883
|
Obligations for
acquired equipment under capital lease:
|
|
4,196
|
677
|
|
12,787
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/fuwei-films-announces-its-unaudited-financial-results-for-the-second-quarter-of-2015-300131310.html
SOURCE Fuwei Films (Holdings) Co., Ltd.