BEIJING, Sept. 29,
2022 /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 of 2022 ended
June 30, 2022.
Second quarter highlights
- Net sales were RMB88.7 million
(US$13.2 million)
- Sales of specialty films were RMB64.9
million (US$9.7 million), or
73.1% of total revenues
- Gross profit was RMB24.9 million
(US$3.7 million), representing a
gross profit margin of 28.1%
- Net profit attributable to the Company was RMB13.7 million (US$2.0
million)
First Six Months 2022 Financial Highlights
- Net sales were RMB191.9 million
(US$28.6 million)
- Sales of specialty films totaled RMB136.8 million (US$20.4
million), or 71.3% of total revenues
- Overseas sales were RMB19.6
million (US$2.9 million),
equivalent to 10.2% of total revenues
- Our gross profit was RMB55.1
million (US$8.2 million),
representing a gross profit margin of 28.7%
- Net income attributable to the Company amounted to RMB30.8 million (US$4.6
million)
Mr. Lei Yan, Chairman and CEO of Fuwei Films, commented, "We saw
positive overall sales trends, particularly in specialty films,
such as a base film for dry film, which accounted for 73.1% of
total revenue. The increase in base film sales demonstrates that
our customers value the high quality of our products, and we
believe it has helped the company's financial performance. At Fuwei
Films, we prioritize innovation and utilize a distinct marketing
approach while expanding future end-user markets for our film
goods. Through these efforts, we anticipate that the Company will
continue capitalizing on new opportunities despite difficult market
and economic conditions."
Second Quarter 2022 Results
Net sales during the second quarter ended June 30, 2022, were RMB88.7 million (US$13.2
million), compared to RMB100.6
million during the same period in 2021, representing a
year-over-year decrease of RMB11.9
million, or 11.8% on an annual base. The average sales price
decline contributed to a RMB3.6
million year-over-year decrease while lower sales volume
represented a decline of RMB8.3
million.
Sales of specialty films in the second quarter of 2022
were RMB64.9 million
(US$9.7 million), or 73.1% of total
revenues, compared to RMB69.0
million, or 68.6% in the same period of 2021, representing a
decrease of RMB4.1 million, or 5.9%.
The decline in sales volume resulted in a reduction of RMB2.0 million, while a lower average sales price
caused a decrease of RMB2.1
million.
The following is a breakdown of commodity and specialty film
sales (amounts in thousands):
|
Three-Month Period
Ended
June 30, 2022
|
% of Total
|
|
Three-Month Period
Ended
June 30, 2021
|
% of Total
|
|
RMB
|
US$
|
|
|
RMB
|
|
Stamping and
transferring film
|
15,594
|
2,328
|
17.6 %
|
|
21,762
|
21.6 %
|
Printing
film
|
4,626
|
691
|
5.2 %
|
|
5,232
|
5.2 %
|
Metallization
film
|
161
|
24
|
0.2 %
|
|
1,090
|
1.1 %
|
Specialty
film
|
64,864
|
9,684
|
73.1 %
|
|
68,979
|
68.6 %
|
Base film for other
applications
|
3,489
|
521
|
3.9 %
|
|
3,519
|
3.5 %
|
|
|
|
|
|
|
|
|
88,734
|
13,248
|
100.0 %
|
|
100,582
|
100.0 %
|
Overseas sales totaled RMB9.4
million, or US$1.4 million,
equivalent to10.6% of total revenues, compared with RMB13.4 million, or 13.3% of total revenues in
the second quarter of 2021. Higher average sales price represented
an increase of RMB0.6 million, while
the sales volume decline resulted in a decrease of RMB4.6 million.
The following is a breakdown of PRC domestic and overseas sales
(amounts in thousands):
|
Three-Month Period
Ended
June 30, 2022
|
% of Total
|
Three-Month Period
Ended
June 30, 2021
|
% of Total
|
|
RMB
|
US$
|
RMB
|
Sales in
China
|
79,330
|
11,844
|
89.4 %
|
87,205
|
86.7 %
|
Sales in other
countries
|
9,404
|
1,404
|
10.6 %
|
13,377
|
13.3 %
|
|
|
|
|
|
|
|
88,734
|
13,248
|
100.0 %
|
100,582
|
100.0 %
|
Gross profit was RMB24.9 million
(US$3.7 million) for the second
quarter ended June 30, 2022,
representing a gross profit margin of 28.1%, compared to a gross
profit margin of 39.6% for the same period in 2021.
Operating expenses for the second quarter ended June 30, 2022, amounted to RMB14.1 million (US$2.1
million) compared to RMB14.0
million in the same 2021 period.
Net profit attributable to the Company during the second quarter
ended June 30, 2022, totaled
RMB13.7 million (US$2.0 million), while net profit attributable to
the Company was RMB19.8 million
during the same period in 2021.
Basic and diluted net profit per share was RMB4.20 (US$0.63)
and RMB6.06 for the three-month
period ended June 30, 2022, and 2021,
respectively.
Total shareholders' equity was RMB347.8
million, or US$51.9 million,
as of June 30, 2022, compared with
RMB317.0 million as of December 31, 2021.
As of June 30, 2022, the Company
had 3,265,837 basic and diluted ordinary shares outstanding.
Financial Results for the Six Months Ended June 30, 2022
Net sales during the six-month period ended June 30, 2022, were RMB191.9 million (US$28.6
million), compared to RMB202.2
million in the same period in 2021, representing a 5.1%
decrease, or RMB10.3 million. The
average sales price decline represented a decrease of RMB3.7 million, while lower sales volume resulted
in a decrease of RMB6.6 million.
In the six-month period ended June 30, 2022, sales of
specialty films totaled RMB136.8
million (US$20.4 million), or
71.3% of our total revenues, compared to RMB133.9 million, or 66.2% in the same period of
2021. Specialty films sales rose RMB2.9
million, or 2.2%, compared to the same period in 2021. The
increase in sales volume amounted to RMB4.9
million, while lower average sales price caused a decrease
of RMB2.0 million.
The following is a breakdown of commodity and specialty film
sales (amounts in thousands):
|
Six-Month Period
Ended
June 30, 2022
|
% of Total
|
|
Six-Month Period
Ended
June 30, 2021
|
% of Total
|
|
RMB
|
US$
|
|
|
RMB
|
|
Stamping and
transferring film
|
37,705
|
5,630
|
19.7 %
|
|
47,113
|
23.3 %
|
Printing
film
|
9,103
|
1,359
|
4.7 %
|
|
10,714
|
5.3 %
|
Metallization
film
|
1,582
|
236
|
0.8 %
|
|
2,733
|
1.4 %
|
Specialty
film
|
136,811
|
20,425
|
71.3 %
|
|
133,941
|
66.2 %
|
Base film for other
applications
|
6,666
|
995
|
3.5 %
|
|
7,705
|
3.8 %
|
|
|
|
|
|
|
|
|
191,867
|
28,645
|
100.0 %
|
|
202,206
|
100.0 %
|
Overseas sales during the six months ended June 30, 2022, were RMB19.6 million, or US$2.9
million, equivalent to 10.2% of total revenues, compared
with RMB22.4 million, or 11.1% of
total revenues in the same period in 2021. Overseas sales declined
RMB2.8 million from the same 2021
period. Lower sales volume explained the RMB4.2 million decrease, while a higher average
sales price contributed to an increase of RMB1.4 million.
The following is a breakdown of PRC domestic and overseas sales
(amounts in thousands):
|
|
Six-Month Period
Ended
June 30, 2022
|
% of Total
|
Six-Month Period
Ended
June 30, 2021
|
% of Total
|
|
|
RMB
|
US$
|
RMB
|
Sales in
China
|
|
172,252
|
25,717
|
89.8 %
|
179,801
|
88.9 %
|
Sales in other
countries
|
|
19,615
|
2,928
|
10.2 %
|
22,405
|
11.1 %
|
|
|
|
|
|
|
|
|
|
191,867
|
28,645
|
100.0 %
|
202,206
|
100.0 %
|
Our gross profit totaled RMB55.1
million (US$8.2 million) for
the first six months ended June 30,
2022, representing a gross margin of 28.7%, compared to a
gross margin of 40.7% for the same period in 2021, a 12% decrease
in the period. Our average product sales prices fell 1.9% from the
same period last year, while the average cost of goods sold rose
18.0% compared to last year, resulting in a decrease in our gross
margin.
Operating expenses for the six months ended June 30, 2022, were RMB27.8 million (US$4.2
million), compared to RMB24.4
million in the same period in 2021, equal to RMB3.4 million, or 13.9% higher than the same
period in 2021. This increase was mainly explained by higher
expenses on R&D and welfare.
Net income attributable to the Company during the first half of
2022 was RMB30.8 million
(US$4.6 million) compared to net
income attributable to the Company of RMB51.2 million during the same period in 2021, a
RMB20.4 million decrease from the
same period in 2021 explained by the factors described above.
Cash, cash equivalent and restricted cash totaled RMB265.2million (US$39.6
million) as of June 30, 2022.
Total shareholders' equity was RMB347.8
million (US$51.9 million).
As of June 30, 2022, the Company
had 3,265,837 basic and diluted total ordinary shares
outstanding.
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's BOPET film
is widely used for packaging 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 is 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 negative impacts of
the determination of the U.S. Securities and Exchange Commission
that the Public Company Accounting Oversight Board ("PCAOB") is
currently unable to inspect our auditor in relation to their audit
work and the potential that our ordinary shares will be prohibited
from trading in the United States
under the Holding Foreign Companies Accountable Act ("HFCAA") in
2024 if the PCAOB is unable to inspect or fully investigate
auditors located in China, or 2023
if proposed changes to the law are enacted, 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,
potential delisting of our ordinary shares under the Holding
Foreign Company Affordable Act if the US Public Company Accounting
Oversight Board is unable to inspect our auditors located in
China, 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 the 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.:
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, 2022,
AND DECEMBER 31, 2021
|
(amounts in thousands
except share and per share value)
|
(Unaudited)
|
|
|
|
June 30,
2022
|
|
December 31,
2021
|
|
RMB
|
US$
|
|
RMB
|
ASSETS
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
245,728
|
36,686
|
|
250,608
|
Restricted
cash
|
|
19,500
|
2,911
|
|
28,294
|
Accounts and bills
receivable, net
|
|
25,337
|
3,783
|
|
29,225
|
Inventories
|
|
47,030
|
7,021
|
|
35,456
|
Advance to
suppliers
|
|
17,645
|
2,634
|
|
7,933
|
Prepayments and other
receivables
|
|
2,266
|
338
|
|
1,199
|
Deferred tax assets -
current
|
|
1,152
|
172
|
|
1,144
|
Total current
assets
|
|
358,658
|
53,545
|
|
353,859
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
101,712
|
15,185
|
|
106,928
|
Construction in
progress
|
|
6,253
|
934
|
|
-
|
Lease prepayments,
net
|
|
14,418
|
2,153
|
|
14,685
|
Deferred tax assets –
non-current
|
|
156
|
23
|
|
227
|
|
|
|
|
|
|
Total
assets
|
|
481,197
|
71,840
|
|
475,699
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Short-term
borrowings
|
|
65,000
|
9,704
|
|
65,000
|
Accounts
payables
|
|
22,368
|
3,339
|
|
22,616
|
Notes
payable
|
|
37,470
|
5,594
|
|
50,126
|
Advance from
customers
|
|
1,343
|
201
|
|
7,672
|
|
5,429
|
811
|
|
11,479
|
Total current
liabilities
|
|
131,610
|
19,649
|
|
156,893
|
|
|
|
|
|
|
Deferred tax
liabilities
|
|
1,756
|
262
|
|
1,789
|
|
|
|
|
|
|
Total
liabilities
|
|
133,366
|
19,911
|
|
158,682
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Registered capital (of
US$0.519008 par value; 135,000,000
shares authorized; 3,265,837 issued and outstanding)
|
|
13,323
|
1,989
|
|
13,323
|
Additional paid-in
capital
|
|
311,907
|
46,566
|
|
311,907
|
Statutory
reserve
|
|
37,441
|
5,590
|
|
37,441
|
Retained
earnings
|
|
(15,680)
|
(2,341)
|
|
(46,494)
|
Cumulative translation
adjustment
|
|
840
|
125
|
|
840
|
Total shareholders'
equity
|
|
347,831
|
51,929
|
|
317,017
|
Total
equity
|
|
347,831
|
51,929
|
|
317,017
|
Total liabilities
and equity
|
|
481,197
|
71,840
|
|
475,699
|
FUWEI FILMS
(HOLDINGS) CO., LTD. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
FOR THE THREE- AND
SIX-MONTH PERIODS ENDED JUNE 30, 2022, AND 2021
|
(amounts in thousands
except share and per share value)
|
(Unaudited)
|
|
|
|
The Three-Month
Period Ended June 30,
|
|
The Six-Month Period
Ended June 30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
RMB
|
US$
|
|
RMB
|
|
RMB
|
US$
|
|
RMB
|
Net sales
|
|
88,734
|
13,248
|
|
100,582
|
|
191,867
|
28,645
|
|
202,206
|
Cost of
sales
|
|
63,832
|
9,530
|
|
60,728
|
|
136,795
|
20,423
|
|
119,902
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
24,902
|
3,718
|
|
39,854
|
|
55,072
|
8,222
|
|
82,304
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
5,237
|
782
|
|
4,944
|
|
10,378
|
1,549
|
|
9,058
|
Administrative
expenses
|
|
8,856
|
1,322
|
|
9,014
|
|
17,431
|
2,602
|
|
15,369
|
Total operating
expenses
|
|
14,093
|
2,104
|
|
13,958
|
|
27,809
|
4,151
|
|
24,427
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
10,809
|
1,614
|
|
25,896
|
|
27,263
|
4,071
|
|
57,877
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
- Interest
income
|
|
2,016
|
301
|
|
1,368
|
|
3,877
|
579
|
|
2,225
|
- Interest
expense
|
|
(1,080)
|
(161)
|
|
(1,378)
|
|
(2,138)
|
(319)
|
|
(2,953)
|
- Other incomes
(expense), net
|
|
1,973
|
295
|
|
(344)
|
|
1,842
|
275
|
|
(222)
|
Total other income
(expense)
|
|
2,909
|
435
|
|
(354)
|
|
3,581
|
535
|
|
(950)
|
|
|
|
|
|
|
|
|
|
|
|
Income before
provision for income
taxes
|
|
13,718
|
2,049
|
|
25,542
|
|
30,844
|
4,606
|
|
56,927
|
Income tax
expense
|
|
(12)
|
(2)
|
|
(5,736)
|
|
(30)
|
(4)
|
|
(5,755)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
13,706
|
2,047
|
|
19,806
|
|
30,814
|
4,602
|
|
51,172
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to
non-controlling
interests
|
|
-
|
-
|
|
-
|
|
-
|
-
|
|
-
|
Net income (loss)
attributable to the
Company
|
|
13,706
|
2,047
|
|
19,806
|
|
30,814
|
4,602
|
|
51,172
|
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
attributable to the
Company
|
|
13,706
|
2,047
|
|
19,806
|
|
30,814
|
4,602
|
|
51,172
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share,
Basic and diluted
|
|
4.20
|
0.63
|
|
6.06
|
|
9.44
|
1.41
|
|
15.67
|
Weighted average
number of 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, 2022, AND 2021
|
(amounts in thousands
except share and per share value)
|
(Unaudited)
|
|
|
|
The Six-Month Period
Ended June 30,
|
|
|
2022
|
|
2021
|
|
|
RMB
|
US$
|
|
RMB
|
Cash flow from
operating activities
|
|
|
|
|
|
Net income
|
|
30,814
|
4,602
|
|
51,172
|
Adjustments to
reconcile net loss to net cash
|
|
|
|
|
|
used in operating
activities
|
|
|
|
|
|
|
|
|
|
|
|
- Depreciation of
property, plant and equipment
|
|
6,646
|
992
|
|
6,109
|
- Amortization of
intangible assets
|
|
267
|
40
|
|
266
|
- Deferred income
taxes
|
|
30
|
4
|
|
5,755
|
- Bad debt
recovery
|
|
53
|
8
|
|
338
|
-Inventory
provision
|
|
-
|
-
|
|
(497)
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
- Accounts and bills
receivable
|
|
3,836
|
573
|
|
(12,667)
|
-
Inventories
|
|
(11,575)
|
(1,728)
|
|
1,456
|
- Advance to
suppliers
|
|
(9,712)
|
(1,450)
|
|
(2,102)
|
- Prepaid expenses and
other current assets
|
|
(1,067)
|
(159)
|
|
(52)
|
- Accounts
payable
|
|
(248)
|
(37)
|
|
(3,967)
|
- Accrued expenses and
other payables
|
|
(5,976)
|
(893)
|
|
(21,118)
|
- Advance from
customers
|
|
(6,328)
|
(945)
|
|
(6,389)
|
- Tax
payable
|
|
(76)
|
(11)
|
|
1,682
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
|
6,664
|
996
|
|
19,986
|
|
|
|
|
|
|
Cash flow from
investing activities
|
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
(1,429)
|
(213)
|
|
(730)
|
Proceeds from sale of
property, plant and equipment
|
|
-
|
-
|
|
122,919
|
Advanced to suppliers -
non-current
|
|
-
|
-
|
|
1,542
|
Amount change in
construction in progress
|
|
(6,253)
|
(934)
|
|
-
|
|
|
|
|
|
|
Net cash provided by
(used in) investing activities
|
|
(7,682)
|
(1,147)
|
|
123,731
|
|
|
|
|
|
|
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)
|
Change in notes
payable
|
|
(12,656)
|
(1,889)
|
|
(15,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in)
provided by financing activities
|
|
(12,656)
|
(1,889)
|
|
(88,571)
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes
|
|
-
|
(2,129)
|
|
-
|
|
|
|
|
|
|
Net increase in cash
and cash equivalent
|
|
(13,674)
|
(4,169)
|
|
55,146
|
|
|
|
|
|
|
Cash and cash
equivalent
|
|
|
|
|
|
At beginning of the
period
|
|
278,902
|
43,766
|
|
120,923
|
At end of the
period
|
|
265,228
|
39,597
|
|
176,069
|
|
|
|
|
|
|
SUPPLEMENTARY
DISCLOSURE:
|
|
|
|
|
|
Interest
paid
|
|
2,138
|
319
|
|
2,953
|
|
|
|
|
|
|
SUPPLEMENTARY
SCHEDULE OF NONCASH INVESTING AND FINANCIAL
ACTIVITIES:
|
Account payable for
plant and equipment:
|
|
1,010
|
151
|
|
1,010
|
View original
content:https://www.prnewswire.com/news-releases/fuwei-films-announces-its-unaudited-financial-results-for-the-second-quarter-of-2022-301636949.html
SOURCE Fuwei Films