In the news release, Fuwei Films Announces its Unaudited
Financial Results for the Third Quarter of 2011, issued
10-Nov-2011 by Fuwei Films (Holdings)
Co., Ltd. over PR Newswire, we are advised by the company that in
the "Highlights" section, second bullet, and also in the "Third
Quarter of 2011 Results" section, the third paragraph under the
second table, the sentence "Net loss was RMB
4.9 million or US$0.8 million,
compared with RMB 15.0 million in the
same period of 2010,” should read “Net loss was RMB 4.9 million or US$0.8
million, compared with net income of RMB 15.0 million in the same period of 2010.” The
complete corrected, release follows:
Fuwei Films Announces its Unaudited Financial Results for the Third
Quarter of 2011 - Teleconference to be Held on
November 11, 2011, at
8:00
a.m. EST -
BEIJING, Nov. 11, 2011 /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 of 2011 ended September 30, 2011.
Highlights
- Revenues were RMB 117.0 million
or US$18.3 million, compared with
RMB 129.2 million in the same period
of 2010.
- Net loss was RMB 4.9 million or
US$0.8 million, compared with net
income of RMB 15.0 million in the
same period of 2010.
- Net sales during the nine-month period were RMB 428.4 million or US$67.0 million compared to RMB 327.9 million or US$49.0 million in the same period in 2010,
representing a 30.6% increase.
- Sales of specialty films during the nine-month period were
RMB 108.4 million or US$17.0 million, reflecting 25.3% of total nets
sales as compared to 16.2% in the same period of 2010, an increase
of 9.1%.
Mr. Xiaoan He, Chairman and CEO,
said, "As we predicted, the sales price of BOPET film products in
the Chinese market continues to decrease resulting from more supply
than demand, although the sales percentage of our higher margin
specialty film increased. Going forward, we intend to take
proactive measures in order to effectively compete and withstand
serious market challenges by continuing improve our product
portfolio in accordance with the differentiation strategy."
Third Quarter of 2011 Results
Revenues were RMB 117.0 million,
or US$18.3 million, compared with
RMB 129.2 million in the same period
of 2010, representing a 9.4% decrease compared with the third
quarter of 2010, mainly due to the decrease of average unit sales
price together with lower sales volume.
Sales of specialty films in the third quarter of 2011 were
RMB 28.9 million or US$4.5 million, or 24.7% of total revenues,
compared with 22.1% in the same period of 2010, an increase of
2.6%. The increase was largely attributable to the increase in
demand for films in electronics as well as high-end and
environmentally friendly packaging.
The following is a breakdown of commodity and specialty film
sales for the three-month periods ended September 30, 2011 and 2010 (amounts in
thousands):
|
|
|
|
Three-Month
Period Ended
|
|
|
|
September 30,
2011
|
|
September 30,
2010
|
|
|
|
|
RMB
|
US$
|
% of Total
|
RMB
|
% of Total
|
|
Printing film
|
|
13,075
|
2,045
|
11.2%
|
18,841
|
14.6%
|
|
Stamping film
|
|
63,614
|
9,947
|
54.4%
|
67,636
|
52.4%
|
|
Metallization film
|
|
7,618
|
1,191
|
6.5%
|
8,799
|
6.8%
|
|
Specialty film
|
|
28,875
|
4,515
|
24.7%
|
28,489
|
22.1%
|
|
Base film for other
applications
|
|
3,781
|
591
|
3.2%
|
5,408
|
4.1%
|
|
|
|
|
|
|
|
|
|
Total
|
|
116,963
|
18, 289
|
100.0%
|
129,173
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
Overseas sales during the third quarter ended September 30, 2011 were RMB 22.4 million or US$3.5
million, or 19.2% of total revenues, compared with
RMB 30.9 million or 23.9% of total
revenues in the same period of 2010, representing a 27.5% decrease.
The decrease in overseas sales was mainly due to decreases overseas
sales prices as well as the significant decline of overseas sales
volume.
The following is a breakdown of domestic versus overseas sales
for the three-month periods ended September
30, 2011 and 2010 (amounts in thousands):
|
|
|
|
Three-Month
Period Ended
|
|
|
|
September 30,
2011
|
|
September 30,
2010
|
|
|
|
|
RMB
|
US$
|
% of Total
|
RMB
|
% of Total
|
|
Sales in China
|
|
94,533
|
14,782
|
80.8%
|
98,263
|
76.1%
|
|
Sales in other
countries
|
|
22,430
|
3,507
|
19.2%
|
30,910
|
23.9%
|
|
|
|
|
|
|
|
|
|
Total
|
|
116,963
|
18,289
|
100.0%
|
129,173
|
100.0%
|
|
|
|
|
|
|
|
|
|
|
Gross profit was RMB 10.4 million
or US$ 1.6 million for the third
quarter of 2011, compared with RMB 40.5
million in the same period of 2010. Gross margin was 8.9%,
compared with 31.4% in the third quarter of 2010. This was mainly
due to increased costs of sales and lower sales price during the
third quarter ended September 30,
2011 compared with the same period in 2010.
Operating expenses for the third quarter ended September 30, 2011 were RMB 14.0 million or US$2.2
million, which was RMB 8.3
million lower than the third quarter of 2010. This decrease
was mainly due to the decrease of provision for bad debts, and
reduced class action litigation and related legal fees.
Net loss was RMB 4.9 million or
US$0.8 million, compared with net
income of RMB 15.0 million in the
same period of 2010.
Basic and diluted net loss per share was RMB 0.38 or US$0.06, compared with basic and diluted earnings
per share of RMB 1.15 in the same
period of 2010.
Total shareholders' equity was RMB 577.5
million (US$90.3 million) as
of September 30, 2011, compared with
RMB 552.5 million as of December 31, 2010.
As of September 30, 2011, the
Company had 13,062,500 basic and diluted total ordinary shares
outstanding.
Mr. He concluded, "With the rapid increase of BOPET capacity in
the market, we cannot control global market conditions and pricing,
especially in the Chinese market. Nevertheless, we can focus on
higher margin specialty products and work hard to remain a leader
in our field. We will continue to keep you informed of our
progress."
Conference Call Information
The Company will host a teleconference on Friday, November 11, 2011, at 8:00 a.m. EST / 9:00
p.m. Beijing time to
discuss the financial results. To participate in the call, please
dial +1-877-407-9210 in North
America, or +1-201-689-8049 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:
382036. The replay will be available until December 11, 2011, at 11:59 p.m. EST.
About Fuwei Films
Fuwei Films conducts its business through its wholly owned
subsidiary, Fuwei Films (Shandong)
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 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 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 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 including complaints and claims from clients;
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:
+86-10-6852-2612
|
|
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
|
|
|
- Financial Tables to Follow -
FUWEI FILMS
(HOLDINGS) CO., LTD. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
AS OF
SEPTEMBER 30, 2011 AND DECEMBER 31, 2010
|
|
(amounts in
thousands except share and per share value)
|
|
(Unaudited)
|
|
|
|
September 30, 2011
|
|
December 31, 2010
|
|
|
RMB
|
US$
|
|
RMB
|
|
ASSETS
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
86,354
|
13,503
|
|
171,227
|
|
Restricted cash
|
|
99,437
|
15,549
|
|
1,314
|
|
Accounts and bills receivable,
net
|
|
42,371
|
6,626
|
|
25,482
|
|
Inventories
|
|
47,724
|
7,463
|
|
52,577
|
|
Advance to suppliers
|
|
6,814
|
1,065
|
|
10,974
|
|
Prepayments and other
receivables
|
1,406
|
219
|
|
540
|
|
Deferred tax assets -
current
|
|
716
|
112
|
|
1,344
|
|
Total current
assets
|
|
284,822
|
44,537
|
|
263,458
|
|
|
|
|
|
|
|
|
Plant, properties and equipment,
net
|
|
287,559
|
44,965
|
|
284,891
|
|
Construction in
progress
|
|
176,722
|
27,634
|
|
197,193
|
|
Lease prepayments,
net
|
|
20,178
|
3,155
|
|
21,024
|
|
Advance to suppliers - Long
Term
|
|
4,780
|
747
|
|
2,787
|
|
Goodwill
|
|
10,276
|
1,607
|
|
10,276
|
|
Long-term deposit
|
|
16,760
|
2,621
|
|
16,760
|
|
Deferred tax assets - non
current
|
|
1,658
|
259
|
|
1,763
|
|
|
|
|
|
|
|
|
Total assets
|
|
802,755
|
125,525
|
|
798,152
|
|
|
|
|
|
|
|
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
Current
liabilities
|
|
|
|
|
|
|
Short-term borrowings
|
|
173,501
|
27,130
|
|
142,000
|
|
Accounts payables
|
|
14,822
|
2,318
|
|
14,296
|
|
Advance from
customers
|
|
18,475
|
2,889
|
|
37,291
|
|
Accrued expenses and other
payables
|
7,489
|
1,171
|
|
20,993
|
|
Deferred tax
liabilities
|
|
1,814
|
284
|
|
1,822
|
|
|
|
216,101
|
33,792
|
|
216,402
|
|
Long-term loan
|
|
10,000
|
1,564
|
|
30,000
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
226,101
|
35,356
|
|
246,402
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Registered capital (of
US$0.129752 par value; 20,000,000 shares authorized; 13,062,500
issued and outstanding)
|
|
13,323
|
2,083
|
|
13,323
|
|
Additional paid-in
capital
|
|
311,907
|
48,772
|
|
311,907
|
|
Statutory reserve
|
|
35,195
|
5,503
|
|
35,195
|
|
Retained earnings
|
|
215,797
|
33,743
|
|
190,933
|
|
Cumulative translation
adjustment
|
|
1,265
|
198
|
|
1,186
|
|
Total shareholders'
equity
|
|
577,487
|
90,299
|
|
552,544
|
|
Non-controlling
interest
|
|
(833)
|
(130)
|
|
(794)
|
|
Total equity
|
|
576,654
|
90,169
|
|
551,750
|
|
Total liabilities and
equity
|
|
802,755
|
125,525
|
|
798,152
|
|
|
|
|
|
|
|
|
|
FUWEI FILMS
(HOLDINGS) CO., LTD. AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
|
FOR THE
THREE- AND NINE-MONTH PERIODS ENDED SPETEMBER 30, 2011 AND
2010
|
|
(amounts in
thousands except share and per share value)
|
|
(Unaudited)
|
|
|
The Three-Month Period
Ended September 30,
|
The Nine-Month Period
Ended September 30,
|
|
|
2011
|
|
2010
|
2011
|
|
2010
|
|
|
RMB
|
US$
|
|
RMB
|
RMB
|
US$
|
|
RMB
|
|
Net sales
|
116,963
|
18,289
|
|
129,173
|
428,433
|
66,993
|
|
327,948
|
|
Cost of sales
|
(106,596)
|
(16,668)
|
|
(88,658)
|
(350,403)
|
(54,791)
|
|
(254,996)
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
10,367
|
1,621
|
|
40,515
|
78,030
|
12,202
|
|
72,952
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
Selling expenses
|
(5,097)
|
(797)
|
|
(4,389)
|
(14,136)
|
(2,210)
|
|
(11,944)
|
|
Administrative
expenses
|
(8,946)
|
(1,399)
|
|
(17,992)
|
(27,824)
|
(4,351)
|
|
(38,417)
|
|
Total operating
expenses
|
(14,043)
|
(2,196)
|
|
(22,381)
|
(41,960)
|
(6,561)
|
|
(50,361)
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
(3,676)
|
(575)
|
|
18,134
|
36,070
|
5,641
|
|
22,591
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
- Interest income
|
358
|
56
|
|
42
|
1,435
|
224
|
|
214
|
|
- Interest expense
|
(2,736)
|
(428)
|
|
(2,337)
|
(7,462)
|
(1,167)
|
|
(6,624)
|
|
- Others income, net
|
543
|
85
|
|
(245)
|
307
|
48
|
|
(381)
|
|
|
|
|
|
|
|
|
|
|
|
Total other income
(expense)
|
(1,835)
|
(287)
|
|
(2,540)
|
(5,720)
|
(895)
|
|
(6,791)
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income tax
benefit (expense)
|
(5,511)
|
(862)
|
|
15,594
|
30,350
|
4,746
|
|
15,800
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit
(expense)
|
597
|
93
|
|
(577)
|
(5,507)
|
(861)
|
|
(555)
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
(4,914)
|
(769)
|
|
15,017
|
24,843
|
3,885
|
|
15,245
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to
noncontrolling interests
|
(12)
|
(2)
|
|
(26)
|
(21)
|
(3)
|
|
(95)
|
|
Net income (loss) attributable
to the Company
|
(4,902)
|
(767)
|
|
15,043
|
24,864
|
3,888
|
|
15,340
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income
|
|
|
|
|
|
|
|
|
|
- Foreign currency translation
adjustments attributable to noncontrolling interest
|
27
|
4
|
|
0
|
44
|
7
|
|
0
|
|
- Foreign currency translation
adjustments attributable to the Company
|
30
|
5
|
|
131
|
35
|
6
|
|
116
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss) attributable to non-controlling interest
|
15
|
2
|
|
(26)
|
23
|
4
|
|
(95)
|
|
Comprehensive income
(loss) attribute to the Company
|
(4,872)
|
(762)
|
|
15,174
|
24,899
|
3,894
|
|
15,456
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share,
basic and diluted
|
(0.38)
|
(0.06)
|
|
1.15
|
1.90
|
0.30
|
|
1.17
|
|
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
SPETEMBER 30, 2011 AND 2010
(amounts in thousands except
share and per share value)
(Unaudited)
|
|
|
|
Period Ended
September 30, 2011
|
|
Period
Ended
September 30, 2010
|
|
|
|
RMB
|
US$
|
|
RMB
|
|
Cash flow from operating
activities
|
|
|
|
|
|
|
Net income
|
|
24,843
|
3,885
|
|
15,245
|
|
Adjustments to reconcile net
income to net cash
|
|
|
|
|
|
|
(used in) provided by
operating activities
|
|
|
|
|
|
|
Depreciation of property,
plant and equipment
|
|
31,013
|
4,849
|
|
26,763
|
|
Amortization of intangible
assets
|
|
340
|
53
|
|
340
|
|
Deferred income
taxes
|
|
726
|
114
|
|
1,942
|
|
Bad debt (recovery)
expense
|
|
(5,690)
|
(890)
|
|
9,138
|
|
Accounts
receivable
|
|
(16,983)
|
(2,656)
|
|
(15,138)
|
|
Inventories
|
|
4,853
|
759
|
|
13,011
|
|
Advance to
suppliers
|
|
4,161
|
651
|
|
(16,236)
|
|
Prepaid expenses and other
current assets
|
|
5,372
|
840
|
|
(487)
|
|
Accounts
payable
|
|
525
|
82
|
|
(3,656)
|
|
Accrued expenses and other
payables
|
|
(7,348)
|
(1,150)
|
|
7,235
|
|
Advance from
customers
|
|
(18,816)
|
(2,942)
|
|
29,643
|
|
Tax payable
|
|
(5,911)
|
(924)
|
|
(38)
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
17,085
|
2,671
|
|
67,762
|
|
|
|
|
|
|
|
|
Cash flow from investing
activities
|
|
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
(33,629)
|
(5,258)
|
|
(2,482)
|
|
Restricted cash related to
trade finance
|
|
(98,134)
|
(15,345)
|
|
3,952
|
|
Advanced to suppliers -
non current
|
|
(1,993)
|
(312)
|
|
2,367
|
|
Amount decrease to
construction in progress
|
|
20,470
|
3,201
|
|
1,163
|
|
|
|
|
|
|
|
|
Net cash (used in)
provided by investing activities
|
|
(113,286)
|
(17,714)
|
|
5,000
|
|
|
|
|
|
|
|
|
Cash flow from financing
activities
|
|
|
|
|
|
|
Principal payments of
short-term bank loans
|
|
(7,000)
|
(1,095)
|
|
(16,179)
|
|
Proceeds from short-term
bank loans
|
|
18,501
|
2,893
|
|
10,000
|
|
|
|
|
|
|
|
|
Net cash provided by (used
in) financing activities
|
|
11,501
|
1,798
|
|
(6,179)
|
|
|
|
|
|
|
|
|
Effect of foreign exchange rate
changes
|
|
(173)
|
851
|
|
(26)
|
|
|
|
|
|
|
|
|
Net (decrease) increase in
cash and cash equivalent
|
|
(84,873)
|
(12,394)
|
|
66,557
|
|
|
|
|
|
|
|
|
Cash and cash
equivalent
|
|
|
|
|
|
|
At beginning of
period/year
|
|
171,227
|
25,897
|
|
26,805
|
|
At end of
period/year
|
|
86,354
|
13,503
|
|
93,362
|
|
|
|
|
|
|
|
|
SUPPLEMENTARY
DISCLOSURE:
|
|
|
|
|
|
|
Interest paid
|
|
7,462
|
1,167
|
|
6,624
|
|
Income tax paid
|
|
9,654
|
1,510
|
|
3,966
|
|
|
|
|
|
|
|
|
|
SOURCE Fuwei Films (Holdings) Co., Ltd.