- Teleconference to be Held on Friday, April 23, 2021, at 9:00 a.m.
ET –
BEIJING, April 22, 2021 /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 financial results for the fourth quarter and full
year ended December 31, 2020.
4Q 2020 Highlights
- Net revenues were RMB86.4 million
or US$13.2 million.
- Sales of specialty films were RMB62.3
million or US$9.5 million, up
30.6% year-over-year.
- Gross margin was 42.2%, up from 35.7% a year ago.
- Net loss attributable to the Company was RMB20.9 million or US$3.2
million
- Basic and diluted loss per share was RMB6.39 or US$0.98
Full Year 2020 Highlights
- Net revenues were RMB336.8
million or US$51.6
million.
- Sales of specialty films were RMB204.7
million or US$31.4 million, up
26.0% year-over-year.
- Gross margin was 40.6 %, up from 24.9% a year ago.
- Net profit attributable to the Company was RMB19.6 million or US$3.0
million, up from a net profit of RMB11.4 million in 2019.
- Basic and diluted profit per share was RMB6.00 or US$0.92,
up from profit per share of RMB3.48 a
year ago.
- Net cash provided by operating activities was RMB117.5 million or US$18.0 million, compared to RMB54.4 million a year ago.
"In 2020, our revenues and gross margins continued to grow.
Sales of specialty films increased by 26.0% year-over-year and
accounted for 60.8% of our total revenues for the year. Our gross
margin increased by 15.7 percentage points to 40.6% for the year of
2020, up from 24.9% in 2019. We are encouraged by positive trends
in revenues and gross margins which we expect to enable us to
better navigate the industrial and economic landscape ahead. We
believe that our focus on innovation will enable the Company to
expand end-user product applications and attract new clients and
expand relationships with existing customers," commented Mr. Lei
Yan, CEO and Chairman of the Company.
Fourth Quarter 2020 Results
Revenues for the fourth quarter of 2020 were RMB86.4 million or US$13.2
million, compared with RMB86.8
million in the fourth quarter of 2019, a decrease of
RMB0.4 million, or 0.5%. Sales volume
accounted for a decrease of RMB2.4
million while the increase of average sales price caused an
increase of RMB2.0 million.
Sales of specialty films for the fourth quarter of 2020 were
RMB62.3 million or US$9.5 million, or 72.1% of total revenues,
compared with RMB47.7 million or
54.9% of total revenue in the fourth quarter of 2019. Sales volume
accounted for an increase of RMB15.5
million while the decrease of average sales price caused a
decrease of RMB0.9 million.
The following is a breakdown of commodity and specialty film
sales for the three-month periods ended December 31, 2020 and 2019 (amounts in
thousands):
|
|
Three months
period ended
|
|
|
December 31,
2020
|
% of Total
|
December 31,
2019
|
% of Total
|
|
|
RMB
|
US$
|
RMB
|
Stamping and transfer
film
|
|
15,193
|
2,328
|
17.6%
|
30,005
|
34.6%
|
Printing
film
|
|
4,117
|
631
|
4.8%
|
5,265
|
6.1%
|
Metallized
film
|
|
815
|
125
|
0.9%
|
1,682
|
1.9%
|
Specialty
film
|
|
62,285
|
9,546
|
72.1%
|
47,720
|
54.9%
|
Base film for
other
applications
|
|
3,940
|
604
|
4.6%
|
2,171
|
2.5%
|
|
|
|
|
|
|
|
Total
|
|
86,350
|
13,234
|
100%
|
86,843
|
100%
|
Sales in China for the fourth
quarter of 2020 were RMB80.5 million,
or US$12.3 million, or 93.2% of total
revenues, compared with RMB81.4
million or 93.8% of total revenues in the fourth quarter of
2019. Sales volume accounted for a decrease of RMB3.3 million while the increase of average
sales price caused an increase of RMB2.4
million.
Overseas sales for the fourth quarter of 2020 were RMB5.9 million or US$0.9
million, or 6.8% of total revenues, compared with
RMB5.4 million or 6.2% of total
revenues in the fourth quarter of 2019. Sales volume accounted for
an increase of RMB1.0 million while
the decrease of average sales price caused a decrease of
RMB0.5 million.
The following is a breakdown of domestic versus overseas sales
for the three-month periods ended December
31, 2020 and 2019 (amounts in thousands):
|
|
Three-month period
ended
|
|
|
|
|
|
December 31,
2020
|
% of Total
|
December 31,
2019
|
% of Total
|
|
|
RMB
|
US$
|
RMB
|
Sales in
China
|
|
80,500
|
12,337
|
93.2%
|
81,442
|
93.8%
|
Sales in other
countries
|
|
5,850
|
897
|
6.8%
|
5,401
|
6.2%
|
|
|
|
|
|
|
|
Total
|
|
86,350
|
13,234
|
100%
|
86,843
|
100%
|
Gross profit for the fourth quarter of 2020 was RMB36.5 million or US$5.6
million, representing a gross margin of 42.2%, compared with
a gross profit of RMB31.0 million,
representing a gross margin of 35.7% in the fourth quarter of
2019.
Operating expenses for the fourth quarter of 2020 were
RMB60.6 million or US$9.3 million compared with RMB15.7 million in the fourth quarter of 2019.
The increase was mainly due to the increased loss on impairment of
assets held for sale.
Net loss attributable to the Company for the fourth quarter of
2020 was RMB20.9 million or
US$3.2 million, compared with net
profit attributable to the Company of RMB10.3 million in the fourth quarter of
2019.
Basic and diluted loss per share was RMB6.39 or US$0.98,
compared with basic and diluted profit per share of RMB3.17 in the fourth quarter of 2019.
2020 Full Year Results
During the fiscal year ended December 31,
2020, net revenues were RMB336.8
million or US$51.6 million,
compared to RMB335.6 million in 2019,
representing an increase of RMB1.2
million or 0.4%. The decrease in average sales price caused
a decrease of RMB0.5 million, which
was more than offset by an increase of RMB1.7 million that resulted from the increase in
sales volume.
In 2020, sales of specialty films were RMB204.7 million or US$31.4 million or 60.8% of our total revenues,
compared to RMB162.4 million or 48.4%
in 2019, which was an increase of RMB42.3
million, or 26.0% higher than 2019. The increase of sales
volume led to an increase of RMB49.2
million, which was offset in part by a decrease of
RMB6.9 million that resulted from the
decline in average sales price.
Overseas sales were RMB27.0
million or US$4.1 million or
8.0% of total revenues, compared with RMB47.6 million or 14.2% of total revenues in
2019. The increase of average sales price caused an increase of
RMB0.6 million and the decrease of
sales volume caused a decrease of RMB21.2
million.
The following is a breakdown of domestic versus overseas sales
for the years ended December 31, 2020
and 2019 (amounts in thousands):
|
For the year ended
December 31,
|
|
|
|
|
2020
|
% of Total
|
2019
|
% of Total
|
|
|
RMB
|
US$
|
RMB
|
Sales in
China
|
|
309,801
|
47,479
|
92.0%
|
288,066
|
85.8%
|
Sales in
other
countries
|
|
26,954
|
4,131
|
8.0%
|
47,554
|
14.2%
|
|
|
336,755
|
51,610
|
100.0%
|
335,620
|
100.0%
|
Gross profit for the year ended December
31, 2020 was RMB136.7 million
or US$21.0 million, up from
RMB 83.6 million in 2019. Our average
unit sales price decreased by 0.2% compared to last year. The unit
sales cost decreased by 21.0% due to the price decrease of main raw
materials. Consequently, the decrease in cost of goods sold per
unit in product exceeded that of sales price during 2020 compared
with 2019, which contributed to the increase in our gross profit.
Our gross margin was 40.6% for the year of 2020, up from a gross
margin of 24.9% in 2019.
Operating expenses during the year ended December 31, 2020 were RMB115.3 million or US$17.7 million, an increase of RMB54.8 million, or 90.6%, as compared to 2019.
The increase was mainly due to the increased loss on impairment of
assets held for sale.
Net profit attributable to the Company for full year 2020 was
RMB19.6 million or US$3.0 million, up from a net profit of
RMB11.4 million in 2019.
Basic and diluted earnings per share for the year ended
December 31, 2020 was RMB6.00 or US$0.92,
up from profit per share of RMB3.48 a
year ago.
Net cash provided by operating activities was RMB117.5 million or US$18
million for the year ended December
31, 2020 as compared to net cash provided by operating
activities of RMB54.4 million for the
year ended December 31, 2019.
Cash and cash equivalents on December 31,
2020 was RMB113.4 million or
US$17.4 million, compared with
RMB60.9 million as of December 31, 2019.
Conference Call
The Company will host a teleconference on Friday, April 23, 2021, at 9:00 a.m. ET / 9:00
p.m. Beijing time to
discuss the financial results. To participate in the call, please
dial +1-844-369-8770 in North
America, or +1-862-298-0840 internationally, approximately 5
minutes prior to the scheduled start time.
A replay of the call can also be accessed via telephone by
calling +1-877-481-4010 in North
America, or +1-919-882-2331 internationally, and entering
the following Conference ID: 40802. The replay will be available
until May 7, 2021.
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 significant
competition in the BOPET film industry, especially the significant
oversupply of BOPET films resulting from the rapid growth of the
Chinese BOPET industry capacity, changes in the international
market and trade barriers, especially the adverse impact of the
antidumping investigation and imposition of an anti-dumping duty on
imports of the BOPET films originating from the People's
Republic of China ("China")
conducted by certain main importing countries; fluctuations of RMB
exchange rate, the reduce in demand for the Company's products or
the loss of main customers which may result in the decrease of
sales, and negatively influencing the Company's financial
performance, uncertainty as to the future profitability,
uncertainty as to the Company's ability to successfully obtain
additional funds to meet the working capital needs of the new BOPET
production line, uncertainty as to the Company's ability to
continuously develop new BOPET film products to be produced by the
third production line and keep up with changes in BOPET film
technology, risks associated with possible defects and errors in
its products including complaints and claims from clients,
uncertainty as to its ability to protect and enforce its
intellectual property rights, uncertainty as to its ability to
attract and retain qualified executives and personnel, and
uncertainty in acquiring raw materials on time and on acceptable
terms, particularly in light of the volatility in the prices of
petroleum products in recent years, instability of power and energy
supply, uncertainty around coronavirus (COVID-19) outbreak and the
effects of government and other measures seeking to contain its
spread; risks related to an economic downturn or recession in
the United States and in other
countries around the world; and changes in political, business, and
economic conditions, and the uncertainty regarding the future
operation of the Company in connection with the changes in the
labor law in China, the measures taken by the Chinese
government to save energy and reduce emissions, and the complaints
from nearby residents and local government about the noise caused
by our production as well as the uncertainty of the impact of major
shareholder transfer that have substantial influence over the
Company and the Company's business operation including possible
overlap of our BOPET products, customers and market orientation
with an BOPET film manufacturer, which is controlled by the same
individual who has control over the shares of our major
shareholder. 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.
Financial Tables Follow
FUWEI FILMS
(HOLDINGS) CO., LTD and SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
As of December 31,
2020 and 2019
(amounts in
thousands, except share and per share data)
|
|
|
|
|
|
|
|
December 31,
2020
|
|
December 31,
2019
|
|
|
|
|
|
RMB
|
US$
|
|
RMB
|
ASSETS
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
113,423
|
17,383
|
|
60,871
|
Restricted
cash
|
|
7,500
|
1,149
|
|
25,500
|
Accounts and bills
receivable, net
|
|
32,393
|
4,964
|
|
26,960
|
Inventories
|
|
25,436
|
3,898
|
|
23,584
|
Advance to
suppliers
|
|
7,359
|
1,128
|
|
6,277
|
Prepayments and other
receivables
|
|
1,103
|
169
|
|
1,058
|
Assets held for
sale
|
|
122,919
|
18,838
|
|
-
|
Deferred tax assets –
current
|
|
6,947
|
1,065
|
|
1,266
|
Total current
assets
|
|
317,080
|
48,594
|
|
145,516
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
111,308
|
17,059
|
|
302,642
|
Construction in
progress
|
|
-
|
-
|
|
-
|
Lease prepayments,
net
|
|
15,219
|
2,332
|
|
15,762
|
Advance to suppliers
- long term, net
|
|
1,542
|
236
|
|
1,542
|
Deferred tax assets -
non current
|
|
507
|
78
|
|
509
|
|
|
|
|
|
|
Total
assets
|
|
445,656
|
68,299
|
|
465,971
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
Current
liabilities
|
|
|
|
|
|
Short-term
borrowings
|
|
65,000
|
9,962
|
|
65,000
|
Due to related
parties
|
|
73,571
|
11,275
|
|
119,297
|
Accounts
payables
|
|
25,730
|
3,943
|
|
19,532
|
Notes
payable
|
|
15,000
|
2,299
|
|
41,000
|
Advance from
customers
|
|
9,297
|
1,425
|
|
5,204
|
Accrued expenses and
other payables
|
|
27,400
|
4,199
|
|
5,454
|
Total current
liabilities
|
|
215,998
|
33,103
|
|
255,487
|
Deferred tax
liabilities
|
|
1,854
|
284
|
|
2,290
|
|
|
|
|
|
|
Total
liabilities
|
|
217,852
|
33,387
|
|
257,777
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Registered capital
(of US$0.519008 par value;
5,000,000 shares authorized; 3,265,837 issued and
outstanding)
|
|
13,323
|
2,042
|
|
13,323
|
Additional paid-in
capital
|
|
311,907
|
47,802
|
|
311,907
|
Statutory
reserve
|
|
37,441
|
5,738
|
|
37,441
|
Retained
earnings
|
|
(135,707)
|
(20,798)
|
|
(155,317)
|
Cumulative
translation adjustment
|
|
840
|
128
|
|
840
|
Total
shareholders' equity
|
|
227,804
|
34,912
|
|
208,194
|
|
|
|
|
|
|
Total
equity
|
|
227,804
|
34,912
|
|
208,194
|
Total liabilities
and equity
|
|
445,656
|
68,299
|
|
465,971
|
FUWEI FILMS
(HOLDINGS) CO., LTD and SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
For the Years Ended
December 31, 2020, 2019 and 2018
(amounts in
thousands, except share and per share data)
|
|
|
|
|
|
The Year Ended
December 31,
|
|
|
|
|
|
2020
|
2019
|
2018
|
|
RMB
|
US$
|
RMB
|
RMB
|
Net sales
|
|
336,755
|
51,610
|
335,620
|
333,522
|
Cost of
sales
|
|
200,056
|
30,660
|
252,010
|
278,834
|
|
|
|
|
|
|
Gross
profit
|
|
136,699
|
20,950
|
83,610
|
54,688
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
Selling
expenses
|
|
17,483
|
2,679
|
13,721
|
13,363
|
Administrative
expenses
|
|
59,865
|
9,175
|
46,794
|
52,593
|
Loss on assets held
for sale
|
|
37,951
|
5,816
|
-
|
-
|
Total operating
expenses
|
|
115,299
|
17,670
|
60,515
|
65,956
|
|
|
|
|
|
|
Operating income
(loss)
|
|
21,400
|
3,280
|
23,095
|
(11,268)
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
- Interest
income
|
|
2,145
|
329
|
1,106
|
1,225
|
- Interest
expense
|
|
(8,490)
|
(1,301)
|
(8,892)
|
(9,766)
|
- Others income
(expense), net
|
|
(1,560)
|
(239)
|
(1,621)
|
1,255
|
Total other income
(expense)
|
|
(7,905)
|
(1,211)
|
(9,407)
|
(7,286)
|
|
|
|
|
|
|
Income (loss) before
provision for income taxes
|
|
13,495
|
2,069
|
13,688
|
(18,554)
|
|
|
|
|
|
|
Income tax (expense)
benefit
|
|
6,115
|
937
|
(2,325)
|
(3,618)
|
|
|
|
|
|
|
Net income
(loss)
|
|
19,610
|
3,006
|
11,363
|
(22,172)
|
|
|
|
|
|
|
Net income
(loss) attributable to noncontrolling
interests
|
|
-
|
-
|
-
|
-
|
Net income (loss)
attributable to the Company
|
|
19,610
|
3,006
|
11,363
|
(22,172)
|
|
|
|
|
|
|
Other comprehensive
income (loss):
|
|
|
|
|
|
- Foreign currency
translation adjustments attributable
to noncontrolling interest
|
|
-
|
-
|
-
|
-
|
- Foreign currency
translation adjustments attributable
to the Company
|
|
-
|
-
|
-
|
(2,026)
|
|
|
|
|
|
|
Comprehensive income
(loss) attributable to
non-controlling interest
|
|
-
|
-
|
-
|
-
|
Comprehensive income
(loss) attribute to the
Company
|
|
19,610
|
3,006
|
11,363
|
(24,198)
|
|
|
|
|
|
|
Net earnings (loss)
per share,
Basic and diluted
|
|
6.00
|
0.92
|
3.48
|
(6.79)
|
Weighted average
number ordinary shares,
Basic and diluted
|
|
3,265,837
|
3,265,837
|
3,265,837
|
3,265,837
|
FUWEI FILMS
(HOLDINGS) CO., LTD and SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
For the Years Ended
December 31, 2020, 2019 and 2018
(Amounts in
thousands)
|
|
|
|
|
|
The Years Ended
December 31,
|
|
|
|
|
|
2020
|
|
2019
|
2018
|
|
|
RMB
|
US$
|
|
RMB
|
RMB
|
Cash flow from
operating activities
|
|
|
|
|
|
|
Net income
(loss)
|
|
19,610
|
3,006
|
|
11,363
|
(22,172)
|
Adjustments to
reconcile net income (loss)
to net
cash
|
|
|
|
|
|
|
provided by (used in)
operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Loss on assets held
for sale impairment
|
|
37,951
|
5,816
|
|
-
|
-
|
- Depreciation of
property, plant and equipment
|
|
41,722
|
6,394
|
|
41,451
|
44,509
|
- Amortization of
intangible assets
|
|
534
|
82
|
|
534
|
534
|
- Deferred income
taxes (benefit)
|
|
(6,115)
|
(937)
|
|
2,325
|
3,617
|
- Bad debt (recovery)
expense
|
|
578
|
89
|
|
(1,014)
|
(620)
|
- Inventory
provision
|
|
267
|
41
|
|
1,489
|
-
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
- Investment income
recorded on Fuwei Holdings' book
|
|
-
|
-
|
|
-
|
-
|
- Accounts and bills
receivable
|
|
(5,086)
|
(779)
|
|
(3,319)
|
(1,884)
|
-
Inventories
|
|
(2,119)
|
(325)
|
|
(399)
|
(96)
|
- Advance to
suppliers
|
|
(2,009)
|
(308)
|
|
(583)
|
(1,796)
|
- Prepaid expenses and
other current assets
|
|
(35)
|
(5)
|
|
10
|
161
|
- Accounts
payable
|
|
6,198
|
950
|
|
(1,217)
|
3,278
|
- Accrued expenses and
other payables
|
|
21,938
|
3,362
|
|
(302)
|
(850)
|
- Advance from
customers
|
|
4,093
|
627
|
|
3,344
|
(117)
|
- Tax
payable
|
|
9
|
1
|
|
684
|
817
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
|
117,536
|
18,014
|
|
54,366
|
25,381
|
|
|
|
|
|
|
|
Cash flow from
investing activities
|
|
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(11,257)
|
(1,725)
|
|
(12,925)
|
(4,619)
|
Advanced to suppliers
- non current
|
|
-
|
-
|
|
-
|
28
|
Amount change in
construction in progress
|
|
-
|
-
|
|
366
|
-
|
|
|
|
|
|
|
|
Deposit for
purchase
|
|
-
|
-
|
|
-
|
-
|
|
|
|
|
|
|
|
Net cash used in
(provided by) investing activities
|
|
(11,257)
|
(1,725)
|
|
(12,559)
|
(4,591)
|
|
|
|
|
|
|
|
Cash flow from
financing activities
|
|
|
|
|
|
|
Principal payments of
bank loans
|
|
-
|
-
|
|
-
|
-
|
Proceeds from
short-term bank loans
|
|
-
|
-
|
|
50
|
14,950
|
Proceeds from related
party
|
|
(45,726)
|
(7,008)
|
|
4,606
|
(36,382)
|
Payment of capital
lease obligation
|
|
-
|
-
|
|
-
|
-
|
Change in notes
payable
|
|
(26,000)
|
(3,985)
|
|
(7,000)
|
(19,900)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
|
(71,726)
|
(10,993)
|
|
(2,344)
|
(41,332)
|
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes
|
|
(1)
|
829
|
|
-
|
(2,014)
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalent, restricted cash
|
|
34,552
|
6,125
|
|
39,463
|
(22,556)
|
|
|
|
|
|
|
|
Cash and cash
equivalent,and restricted cash
|
|
|
|
|
|
|
At beginning of
period/year
|
|
86,371
|
12,407
|
|
46,908
|
69,464
|
At end of
period/year
|
|
120,923
|
18,532
|
|
86,371
|
46,908
|
|
|
|
|
|
|
|
SUPPLEMENTARY
DISCLOSURE:
|
|
|
|
|
|
|
Interest
paid
|
|
8,490
|
1,301
|
|
8,892
|
9,766
|
Income tax
paid
|
|
-
|
-
|
|
-
|
-
|
|
|
|
|
|
|
|
SUPPLEMENTARY
SCHEDULE OF NONCASH INVESTING AND
FINANCIAL ACTIVITIES:
|
|
|
|
|
|
|
Account payable for
plant and equipment:
|
|
1,010
|
155
|
|
1,010
|
1,010
|
Obligations for
acquired equipment under capital lease:
|
|
-
|
-
|
|
-
|
-
|
View original
content:http://www.prnewswire.com/news-releases/fuwei-films-announces-fourth-quarter-and-full-year-2020-financial-results-301274952.html
SOURCE Fuwei Films (Holdings) Co., Ltd.