-Teleconference to be Held on Friday, September 3, 2021 at 8:00 am ET-

BEIJING, Sept. 2, 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 unaudited financial results for the second quarter and first six months of 2021 ended June 30, 2021.

Second Quarter 2021 Financial Highlights

  • Net sales were RMB100.6 million (US$15.6 million), compared to RMB82.9 million during the same period in 2020, representing a year-over-year increase of RMB17.7 million or 21.4%.
  • Sales of specialty films were RMB69.0 million (US$10.7 million) or 68.6% of our total revenues as compared to RMB48.1 million or 58.0% in the same period of 2020, which was a year-over-year increase of RMB20.9 million, or 43.5%.
  • Overseas sales were RMB13.4 million (US$2.1 million) or 13.3% of total revenues, compared with RMB7.5 million or 9.1% of total revenues in the second quarter of 2020.
  • Gross profit was RMB39.9 million (US$6.2 million), representing a gross profit rate of 39.6%.
  • Net profit attributable to the Company was RMB19.8 million (US$3.1 million), compared with net profit attributable to the Company of RMB14.1 million during the same period in 2020.

First Six Months 2021 Financial Highlights

  • Net sales were RMB202.2 million (US$31.3 million), compared to RMB166.1 million in the same period in 2020, representing an increase of RMB36.1 million or 21.7%.
  • Sales of specialty films were RMB133.9 million (US$20.7 million) or 66.2% of our total revenues as compared to RMB88.0 million or 53.0% in the same period of 2020.
  • Overseas sales were RMB22.4 million (US$3.5 million), or 11.1% of total revenues, compared with RMB13.3 million or 8.0% of total revenues in the same period in 2020.
  • Our gross profit was RMB82.3 million (US$12.7 million), representing a gross margin rate of 40.7%, as compared to a gross margin rate of 38.7% for the same period in 2020.
  • Net income attributable to the Company was RMB51.2 million (US$7.9 million), compared to net income attributable to the Company of RMB27.0 million during the same period in 2020.

Mr. Lei Yan, Chairman and CEO of Fuwei Films, commented, "We continued to achieve positive trends in our mix of sales, especially sales of specialty films which accounted for 68.6% of our total revenues for the second quarter ended June 30, 2021. We believe these results benefit from our commitment to innovation and differentiated marketing strategy, which have expanded the end-user applications of our films products. We will carry on with these efforts and expect that they will enable the Company to capitalize on new opportunities despite challenging industry and economic conditions."

Second Quarter 2021 Results

Net sales during the second quarter ended June 30, 2021 were RMB100.6 million (US$15.6 million), compared to RMB82.9 million during the same period in 2020, representing a year-over-year increase of RMB17.7 million or 21.4%. The increase of average sales price caused a year-over-year increase of RMB15.6 million and higher sales volume caused an increase of RMB2.1 million.

In the second quarter of 2021, sales of specialty films were RMB69.0 million (US$10.7 million) or 68.6% of our total revenues as compared to RMB48.1 million or 58.0% in the same period of 2020, which was an increase of RMB20.9 million, or 43.5% as compared to the same period in 2020. The increase of sales volume caused an increase of RMB16.0 million and the increase in the average sales price caused an increase of RMB4.9 million.

The following is a breakdown of commodity and specialty film sales (amounts in thousands):


Three-Month Period Ended
 June 30, 2021

% of Total


Three-Month Period Ended
June 30, 2020

% of Total


RMB

US$



RMB


Stamping and transfer film

21,762

3,371

21.6%


25,885

31.3%

Printing film

5,232

810

5.2%


5,746

6.9%

Metallization film

1,090

169

1.1%


1,159

1.4%

Specialty film

68,979

10,683

68.6%


48,088

58.0%

Base film for other application

3,519

545

3.5%


1,978

2.4%









100,582

15,578

100.0%


82,856

100.0%

Overseas sales were RMB13.4 million or US$2.1 million, or 13.3% of total revenues, compared with RMB7.5 million or 9.1% of total revenues in the second quarter of 2020. The increase of average sales price caused an increase of RMB0.6 million and the increase in sales volume resulted in an increase of RMB5.3 million.

The following is a breakdown of PRC domestic and overseas sales (amounts in thousands):



Three-Month Period Ended
 June 30, 2021

% of Total

Three-Month Period Ended
June 30, 2020

RMB

% of Total



RMB

US$



Sales in China


87,205

13,506

86.7%

75,334

90.9%

Sales in other countries


13,377

2,072

13.3%

7,522

9.1%










100,582

15,578

100.0%

82,856

100.0%

Gross profit was RMB39.9 million (US$6.2 million) for the second quarter ended June 30, 2021, representing a gross profit rate of 39.6%, as compared to a gross profit rate of 41.6% for the same period in 2020.

Operating expenses for the second quarter ended June 30, 2021 were RMB14.0 million (US$2.2 million), as compared to RMB18.7 million for the same period in 2020. This decrease was mainly due to the decrease of accrual depreciation of the third production line and trial production line as these two production lines were sold.

Net profit attributable to the Company during the second quarter ended June 30, 2021 was RMB19.8 million (US$3.1 million) while net profit attributable to the Company was RMB14.1 million during the same period in 2020.

Financial Results for the Six Months Ended June 30, 2021

Net sales during the six-month period ended June 30, 2021 were RMB202.2 million (US$31.3 million), compared to RMB166.1 million in the same period in 2020, representing an increase of RMB36.1 million or 21.7%. The increase in average sales price caused an increase of RMB22.0 million and the increase in the sales volume caused an increase of RMB14.1 million.

In the six-month period ended June 30, 2021, sales of specialty films were RMB133.9 million (US$20.7 million) or 66.2% of our total revenues as compared to RMB88.0 million or 53.0% in the same period of 2020, which was an increase of RMB45.9 million, or 52.2% as compared to the same period in 2020. The increase in sales volume caused an increase of RMB41.6 million and the increase in the average sales price caused an increase of RMB4.3 million.

The following is a breakdown of commodity and specialty film sales (amounts in thousands):


Six-Month Period Ended
 June 30, 2021

% of Total

Six-Month Period Ended
June 30, 2020

% of Total


RMB

US$


RMB


Stamping and transfer film

47,113

7,298

23.3%

60,406

36.3%

Printing film

10,714

1,659

5.3%

11,591

7.0%

Metallization film

2,733

423

1.4%

2,661

1.6%

Specialty film

133,941

20,745

66.2%

87,965

53.0%

Base film for other application

7,705

1,193

3.8%

3,466

2.1%








202,206

31,318

100.0%

166,089

100.0%

Overseas sales during the six months ended June 30, 2021 were RMB22.4 million or US$3.5 million, or 11.1% of total revenues, compared with RMB13.3 million or 8.0% of total revenues in the same period in 2020. This was RMB9.1 million higher than the same period in 2020. The increase in sales volume resulted in an increase of RMB8.1 million while higher average sales price caused an increase of RMB1.0 million.

The following is a breakdown of PRC domestic and overseas sales (amounts in thousands):


Six-Month Period Ended
 June 30, 2021

% of Total

Six-Month Period Ended
June 30, 2020

RMB

% of Total


RMB

US$



Sales in China

179,801

27,848

88.9%

152,783

92.0%

Sales in other countries

22,405

3,470

11.1%

13,306

8.0%








202,206

31,318

100.0%

166,089

100.0%

Our gross profit was RMB82.3 million (US$12.7 million) for the first six months ended June 30, 2021, representing a gross margin rate of 40.7%, as compared to a gross margin rate of 38.7% for the same period in 2020. Correspondingly, gross margin rate increased by 2.0 percentage points. Our average product sales prices increased by 12.2% compared to the same period last year while the average cost of goods sold increased by 8.4% compared to the same period last year. Consequently, it resulted in an increase in our gross margin.

Operating expenses for the six months ended June 30, 2021 were RMB24.4 million (US$3.8 million), compared to RMB33.8 million in the same period in 2020, which was RMB9.4 million or 27.8% lower than the same period in 2020. This decrease was mainly due to the decrease of accrual depreciation of the third production line and trial production line.

Net income attributable to the Company during the first half of 2021 was RMB51.2 million (US$7.9 million) compared to net income attributable to the Company of RMB27.0 million during the same period in 2020, representing an increase of RMB24.2 million from the same period in 2020 due to the factors described above.

Cash, cash equivalent and restricted cash totaled RMB176.1 million (US$27.3 million) as of June 30, 2021. Total shareholders' equity was RMB279.0 million (US$43.2 million).

As of June 30, 2021, the Company had 3,265,837 basic and diluted total ordinary shares outstanding.

Conference Call Information

The Company will host a teleconference on Friday, September 3, 2021, at 8:00 a.m. ET / 8:00 p.m. Beijing time to discuss the financial results. To participate in the call, please dial +1-844-602-0380 in North America, or +1-862-298-0970 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: 42544. The replay will be available until September 17, 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 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 uncertainty 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 countries; uncertainty around coronavirus (COVID-19) outbreak and the effects of government and other measures seeking to contain its spread, uncertainty around U.S.-China trade war and its effect on the Company's operation, fluctuations of the RMB exchange rate, 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.:

Shiwei Yin
Investor Relations
Grayling
Phone: +1-646-284-9474
Email: shiwei.yin@grayling.com

And

Lucia Domville
Investor Relations
Grayling
Phone: +1-646-824-2856
Email: lucia.domville@grayling.com

Financial Tables to Follow

 

FUWEI FILMS (HOLDINGS) CO., LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF JUNE 30, 2021 AND DECEMBER 31, 2020

(amounts in thousands except share and per share value)

(Unaudited)




June 30, 2021


December 31, 2020


RMB

US$


RMB

ASSETS

Current assets






Cash and cash equivalents


176,069

27,270


113,423

Restricted cash


-

-


7,500

Accounts and bills receivable, net


43,797

6,783


32,393

Inventories


24,477

3,791


25,436

Advance to suppliers


10,388

1,609


7,359

Prepayments and other receivables


1,155

179


1,103

Assets held for sale


-

-


122,919

Deferred tax assets - current


1,369

212


6,947

Total current assets


257,255

39,844


317,080







Property, plant and equipment, net


105,928

16,406


111,308

Lease prepayments, net


14,952

2,316


15,219

Advance to suppliers - long term, net


-

-


1,542

Deferred tax assets - non current


297

46


507







Total assets


378,432

58,612


445,656







LIABILITIES AND EQUITY

Current liabilities






Short-term borrowings


65,000

10,067


65,000

Due to related parties


-

-


73,571

Accounts payables


21,763

3,371


25,730

Notes payable


-

-


15,000

Advance from customers


2,908

450


9,297

Accrued expenses and other payables

7,964

1,233


27,400

Total current liabilities


97,635

15,121


215,998







Deferred tax liabilities


1,821

282


1,854







Total liabilities


99,456

15,403


217,852







Equity






Shareholders' equity






Registered capital (of US$0.519008 par value; 5,000,000 shares
authorized; 3,265,837 issued and outstanding)


13,323

2,063


13,323

Additional paid-in capital


311,907

48,308


311,907

Statutory reserve


37,441

5,799


37,441

Retained earnings


(84,535)

(13,093)


(135,707)

Cumulative translation adjustment


840

132


840

Total shareholders' equity


278,976

43,209


227,804

Total equity


278,976

43,209


227,804

Total liabilities and equity


378,432

58,612


445,656

 

FUWEI FILMS (HOLDINGS) CO., LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

FOR THE THREE- AND SIX-MONTH PERIODS ENDED JUNE 30, 2021 AND 2020

(amounts in thousands except share and per share value)

(Unaudited)




The Three-Month Period Ended June 30,


The Six-Month Period Ended June 30, 



2021


2020


2021


2020


RMB

US$


RMB


RMB

US$


RMB

Net sales


100,582

15,578


82,856


202,206

31,318


166,089

Cost of sales


60,728

9,406


48,421


119,902

18,570


101,895












Gross profit


39,854

6,172


34,435


82,304

12,748


64,194












Operating expenses











Selling expenses


4,944

766


3,372


9,058

1,403


7,458

Administrative expenses


9,014

1,396


15,368


15,369

2,380


26,323

Total operating expenses


13,958

2,162


18,740


24,427

3,783


33,781












Operating income 


25,896

4,010


15,695


57,877

8,965


30,413












Other income (expense)











- Interest income


1,368

212


567


2,225

345


857

- Interest expense


(1,378)

(213)


(2,241)


(2,953)

(457)


(4,457)

- Others income (expense), net


(344)

(53)


49


(222)

(34)


118

Total other expenses


(354)

(54)


(1,625)


(950)

(146)


(3,482)












Income(loss) before provision for income taxes


25,542

3,956


14,070


56,927

8,819


26,931

Income tax benefit (expense)


(5,736)

(888)


(13)


(5,755)

(891)


81












Net income (loss)


19,806

3,068


14,057


51,172

7,928


27,012












Net income (loss) attributable to non-controlling interests


-

-


-


-

-


-

Net income (loss) attributable to the Company


19,806

3,068


14,057


51,172

7,928


27,012

Other comprehensive income (loss)











- Foreign currency translation adjustments attributable to non-controlling interest


-

-


-


-

-


-

- Foreign currency translation adjustments attributable to the Company


-

-


-


-

-


-












Comprehensive loss attributable to non-controlling interest


-

-


-


-

-


-

Comprehensive income(loss ) attributable to the Company


19,806

3,068


14,057


51,172

7,928


27,012












Earnings (loss) per share,
Basic and diluted


6.06

0.94


4.30


15.67

2.43


8.27

Weighted average number ordinary shares,
Basic and diluted


3,265,837

3,265,837


3,265,837


3,265,837

3,265,837


3,265,837













 

FUWEI FILMS (HOLDINGS) CO., LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2021 AND 2020

(amounts in thousands except share and per share value)

(Unaudited)




The Six-Month Period Ended June 30, 



2021


2020



RMB

US$


RMB

Cash flow from operating activities






Net loss


51,172

7,928


27,012

Adjustments to reconcile net loss to net cash






used in operating activities












- Depreciation of property, plant and equipment


6,109

946


17,986

- Amortization of intangible assets


266

41


267

- Deferred income taxes


5,755

891


(81)

- Bad debt recovery


338

52


160

-Inventory provision


(497)

(77)


-

Changes in operating assets and liabilities 






- Accounts and bills receivable


(12,667)

(1,962)


(15,026)

- Inventories


1,456

226


(2,523)

- Advance to suppliers


(2,102)

(326)


(2,497)

- Prepaid expenses and other current assets


(52)

(8)


(87)

- Accounts payable


(3,967)

(614)


1,176

- Accrued expenses and other payables


(21,118)

(3,271)


210

- Advance from customers


(6,389)

(990)


(793)

- Tax payable


1,682

261


65







Net cash provided by (used in) operating activities


19,986

3,097


25,869







Cash flow from investing activities






Purchases of property, plant and equipment


(730)

(113)


(1,232)

Proceeds from sale of property, plant and equipment


122,919

19,038


-

Advanced to suppliers - non current


1,542

239


-

Amount change in construction in progress


-

-


(999)







Net cash provided by (used in) investing activities


123,731

19,164


(2,231)







Cash flow from financing activities






Principal payments of bank loans


-

-


-

Proceeds from (payment to) short-term bank loans


-

-


-

Proceeds from (payment to) related party


(73,571)

(11,395)


2,309

Change in notes payable


(15,000)

(2,323)


(31,000)













Net cash (used in) provided by financing activities


(88,571)

(13,718)


(28,691)







Effect of foreign exchange rate changes


-

195


-







Net increase in cash and cash equivalent


55,146

8,738


(5,053)







Cash and cash equivalent






At beginning of period


120,923

18,532


86,371

At end of period


176,069

27,270


81,318







SUPPLEMENTARY DISCLOSURE:






Interest paid


2,953

457


4,457







SUPPLEMENTARY SCHEDULE OF NONCASH INVESTING AND FINANCIAL ACTIVITIES:

Account payable for plant and equipment:


1,010

156


1,010

Cision View original content:https://www.prnewswire.com/news-releases/fuwei-films-announces-its-unaudited-financial-results-for-the-second-quarter-of-2021-301368583.html

SOURCE Fuwei Films

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