-Teleconference to be Held on Friday, May 19, 2017 at 9:00 am EDT–
BEIJING, May 18, 2017 /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 first quarter of
2017 ended March 31, 2017.
Highlights
Net sales during the first quarter ended March 31, 2017 were RMB67.9 million or US$9.9
million, compared to RMB62.1
million, during the same period in 2016, representing an
increase of RMB5.8 million or 9.3%,
mainly due to the increased sales price.
Basic and diluted net loss per share was RMB3.72 or US$0.54
and RMB3.69 for the three-month
period ended March 31, 2017 and 2016,
respectively.
Our gross profit was RMB3.8
million or US$0.5 million for
the first quarter ended March 31,
2017, representing a gross margin of 5.5%, as compared to a
gross margin of 9.0% for the same period in 2016. Correspondingly,
gross margin rate decreased by 3.5 percentage points compared to
the same period in 2016.
Mr. Zengyong Wang, Chairman and CEO of Fuwei Films, commented,
"While we continue to face strong competition from emerging and
incumbent players in the marketplace, which has led to oversupply
relative to demand in the marketplace, we are encouraged by
positive trends in the sales of specialty films. We believe our
commitment to innovation and R&D has expanded our end-user
applications that will enable the Company to capitalize on these
opportunities despite challenging industry and economic
conditions."
First Quarter 2017 Results
Net sales during the first quarter ended March 31, 2017 were RMB67.9 million or US$9.9
million, compared to RMB62.1
million, during the same period in 2016, representing an
increase of RMB5.8 million or 9.3%,
mainly due to the increased sales price.
In the first quarter of 2017, sales of specialty films were
RMB21.8 million or US$3.2 million or 32.0% of our total revenues as
compared to RMB21.8 million or 35.0%
in the same period of 2016.
The following is a breakdown of commodity and specialty film
sales (amounts in thousands):
|
Three-Month Period
Ended
March 31, 2017
|
% of
Total
|
Three-Month Period
Ended
March 31, 2016
|
% of
Total
|
|
RMB
|
US$
|
|
RMB
|
|
Stamping and transfer
film
|
27,071
|
3,933
|
39.9%
|
23,783
|
38.2%
|
Printing
film
|
6,270
|
911
|
9.2%
|
2,410
|
3.9%
|
Metallization
film
|
2,618
|
380
|
3.9%
|
794
|
1.3%
|
Specialty
film
|
21,762
|
3,162
|
32.0%
|
21,759
|
35.0%
|
Base film for other
application
|
10,223
|
1,485
|
15.0%
|
13,401
|
21.6%
|
|
|
|
|
|
|
|
67,944
|
9,871
|
100.0%
|
62,147
|
100.0%
|
Overseas sales were RMB13.2
million or US$1.9 million, or
19.4% of total revenues, compared with RMB12.5 million or 20.1% of total revenues in the
first quarter of 2016, representing an increase of RMB0.7 million or 5.6%. While a decrease in sales
volume caused a decrease of RMB0.2
million, this was offset by an increase of RMB0.9 million caused by the increase of sales
price.
The following is a breakdown of PRC domestic and overseas sales
(amounts in thousands except percentages):
|
Three-Month Period
Ended
|
% of
|
Three-Month Period
Ended
|
% of
|
|
March 31,
2017
|
Total
|
March 31,
2016
|
Total
|
|
RMB
|
US$
|
|
RMB
|
|
Sales in
China
|
54,730
|
7,951
|
80.6%
|
49,632
|
79.9%
|
Sales in other
countries
|
13,214
|
1,920
|
19.4%
|
12,515
|
20.1%
|
|
|
|
|
|
|
|
67,944
|
9,871
|
100.0%
|
62,147
|
100.0%
|
Our gross profit was RMB3.8
million or US$0.5 million for
the first quarter ended March 31,
2017, representing a gross margin of 5.5%, as compared to a
gross margin of 9.0% for the same period in 2016. Correspondingly,
gross margin rate decreased by 3.5 percentage points compared to
the same period in 2016. Our average cost of goods sold increased
by 13.2% compared to the same period in 2016 due to the price
increase of main raw materials. Consequently, the increase in the
average cost of goods sold was significantly higher than that in
average product sales prices during the first quarter ended
March 31, 2017, which contributed to
the decrease in our gross margin compared with the same period in
2016.
Operating expenses for the first quarter ended March 31, 2017 were RMB13.8 million or US$2.0
million, which was RMB1.2
million, or 8.0% lower than the same period in 2016. This
decrease was mainly due to the decreased allowance for doubtful
accounts receivable.
Net loss attributable to the Company during the first quarter
ended March 31, 2017 was RMB12.2 million or US$1.8
million compared to net loss attributable to the Company of
RMB12.1 million during the same
period in 2016.
Basic and diluted net loss per share was RMB3.72 or US$0.54
and RMB3.69 for the three-month
period ended March 31, 2017 and 2016,
respectively.
Total shareholders' equity was RMB253.3
million or US$36.8 million as
of March 31, 2017, compared with
RMB265.2 million as of December 31, 2016.
As of March 31, 2017, the Company
had 3,265,837 basic and diluted ordinary shares outstanding.
Conference Call Information
The Company will host a teleconference on Friday, May 19, 2017, 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 +1-877-481-4010 in North
America, or +1-919-882-2331 internationally, and entering
the following Conference ID: 10398. The replay will be available
until June 19, 2017, 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'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 operate its third 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, 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.
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.:
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 MARCH 31,
2017 AND DECEMBER 31, 2016
|
(amounts in thousands
except share and per share value)
|
(Unaudited)
|
|
|
|
|
|
|
March 31,
2017
|
|
December 31,
2016
|
|
RMB
|
US$
|
|
RMB
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
21,928
|
3,186
|
|
13,343
|
Restricted
cash
|
45,501
|
6,610
|
|
73,421
|
Accounts and bills
receivable, net
|
24,260
|
3,525
|
|
29,453
|
Inventories
|
24,926
|
3,621
|
|
25,153
|
Advance to
suppliers
|
10,727
|
1,558
|
|
6,043
|
Prepayments and other
receivables
|
3,080
|
447
|
|
6,489
|
Deferred tax assets -
current
|
1,242
|
180
|
|
1,199
|
Total current
assets
|
131,664
|
19,127
|
|
155,101
|
|
|
|
|
|
Plant, properties and
equipment, net
|
399,687
|
58,067
|
|
410,654
|
Construction in
progress
|
431
|
63
|
|
431
|
Lease prepayments,
net
|
17,227
|
2,503
|
|
17,358
|
Advance to suppliers
- long term, net
|
532
|
77
|
|
1,861
|
Deferred tax assets -
non current
|
7,996
|
1,162
|
|
8,032
|
|
|
|
|
|
Total
assets
|
557,537
|
80,999
|
|
593,437
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term
borrowings
|
60,000
|
8,717
|
|
60,000
|
Long-term loan,
current portion
|
3,300
|
479
|
|
3,300
|
Due to related
parties
|
136,141
|
19,779
|
|
131,747
|
Accounts
payables
|
18,471
|
2,683
|
|
20,581
|
Notes
payable
|
75,500
|
10,969
|
|
100,888
|
Advance from
customers
|
2,565
|
373
|
|
3,509
|
Accrued expenses and
other payables
|
5,291
|
769
|
|
5,204
|
Total current
liabilities
|
301,268
|
43,769
|
|
325,229
|
|
|
|
|
|
Deferred tax
liabilities
|
2,939
|
427
|
|
2,997
|
|
|
|
|
|
Total
liabilities
|
304,207
|
44,196
|
|
328,226
|
|
|
|
|
|
Equity
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
Registered capital(of
US$0.519008 par value; 5,000,000 shares authorized; 3,265,837
issued and outstanding)
|
13,323
|
1,936
|
|
13,323
|
Additional paid-in
capital
|
311,907
|
45,314
|
|
311,907
|
Statutory
reserve
|
37,441
|
5,439
|
|
37,441
|
Accumulated
deficit
|
(110,662)
|
(16,077)
|
|
(98,505)
|
Cumulative
translation adjustment
|
1,321
|
191
|
|
1,045
|
Total
shareholders' equity
|
253,330
|
36,803
|
|
265,211
|
Total
equity
|
253,330
|
36,803
|
|
265,211
|
Total liabilities
and equity
|
557,537
|
80,999
|
|
593,437
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FUWEI FILMS
(HOLDINGS) CO., LTD. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
FOR THE
THREE-MONTH PERIOD ENDED MARCH 31, 2017 AND 2016
|
(amounts in thousands
except share and per share value)
|
(Unaudited)
|
|
|
|
|
|
|
The Three-Month
Period
Ended March 31,
|
|
2017
|
|
2016
|
|
RMB
|
US$
|
|
RMB
|
Net sales
|
67,944
|
9,871
|
|
62,147
|
Cost of
sales
|
64,187
|
9,325
|
|
56,558
|
|
|
|
|
|
Gross
Profit
|
3,757
|
546
|
|
5,589
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Selling
expenses
|
3,506
|
509
|
|
2,949
|
Administrative
expenses
|
10,266
|
1,491
|
|
12,048
|
Total operating
expenses
|
13,772
|
2,000
|
|
14,997
|
|
|
|
|
|
Operating
loss
|
(10,015)
|
(1,454)
|
|
(9,408)
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
- Interest
income
|
286
|
42
|
|
218
|
- Interest
expense
|
(2,446)
|
(355)
|
|
(1,754)
|
- Others (expense)
income, net
|
(47)
|
(7)
|
|
(1,529)
|
|
|
|
|
|
Total other
expense
|
(2,207)
|
(320)
|
|
(3,065)
|
|
|
|
|
|
Loss before provision
for income taxes
|
(12,222)
|
(1,774)
|
|
(12,473)
|
|
|
|
|
|
Income tax benefit
expense
|
65
|
9
|
|
418
|
|
|
|
|
|
Net
loss
|
(12,157)
|
(1,765)
|
|
(12,055)
|
|
|
|
|
|
Net loss attributable
to non-controlling interests
|
-
|
-
|
|
-
|
Net loss attributable
to the Company
|
(12,157)
|
(1,765)
|
|
(12,055)
|
|
|
|
|
|
Other comprehensive
income
|
|
|
|
|
- Foreign currency
translation adjustments attributable to non-controlling
interest
|
-
|
-
|
|
4
|
- Foreign currency
translation adjustments attributable to the Company
|
276
|
40
|
|
(5)
|
|
|
|
|
|
Comprehensive loss
attributable to non-controlling interest
|
-
|
-
|
|
4
|
Comprehensive loss
attributable to the Company
|
(11,881)
|
(1,725)
|
|
(12,060)
|
|
|
|
|
|
Loss per
share,
|
(3.72)
|
(0.54)
|
|
(3.69)
|
Basic and
diluted
|
|
|
|
|
Weighted average
number ordinary shares,
|
3,265,837
|
3,265,837
|
|
3,265,837
|
Basic and
diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FUWEI FILMS
(HOLDINGS) CO., LTD. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
FOR THE
THREE-MONTH PERIOD ENDED MARCH 31, 2017AND 2016
|
(amounts in thousands
except share and per share value)
|
(Unaudited)
|
|
|
|
|
|
|
The Three-Month
Period
Ended March 31,
|
|
2017
|
|
2016
|
|
RMB
|
US$
|
|
RMB
|
Cash flow from
operating activities
|
|
|
|
|
Net loss
|
(12,157)
|
(1,766)
|
|
(12,055)
|
Adjustments to
reconcile net loss to net cash
|
|
|
|
|
used in operating
activities
|
|
|
|
|
- Depreciation of
property, plant and equipment
|
10,981
|
1,595
|
|
10,668
|
- Amortization of
intangible assets
|
131
|
19
|
|
131
|
- Deferred income
taxes
|
(65)
|
(9)
|
|
(418)
|
- Bad debt
expense
|
287
|
42
|
|
1,723
|
-Inventory
provision
|
-
|
-
|
|
(226)
|
Changes in operating
assets and liabilities
|
|
|
|
|
- Accounts and bills
receivable
|
4,906
|
713
|
|
(13,623)
|
-
Inventories
|
227
|
33
|
|
5,411
|
- Advance to
suppliers
|
(4,683)
|
(680)
|
|
42
|
- Prepaid expenses
and other current assets
|
47
|
7
|
|
(373)
|
- Accounts
payable
|
(2,110)
|
(308)
|
|
(2,399)
|
- Accrued expenses
and other payables
|
97
|
14
|
|
(1,087)
|
- Advance from
customers
|
(945)
|
(137)
|
|
(349)
|
- Tax
payable
|
3,361
|
488
|
|
10,012
|
|
|
|
|
|
Net cash used in
operating activities
|
77
|
11
|
|
(2,543)
|
|
|
|
|
|
Cash flow from
investing activities
|
|
|
|
|
Purchases of
property, plant and equipment
|
(14)
|
(2)
|
|
498
|
Restricted cash
related to trade finance
|
27,921
|
4,056
|
|
(3,414)
|
Advanced to suppliers
- non current
|
1,329
|
193
|
|
196
|
Amount change in
construction in progress
|
-
|
-
|
|
(2,195)
|
|
|
|
|
|
Net cash (used in)
provided by investing activities
|
29,236
|
4,247
|
|
(4,915)
|
|
|
|
|
|
Cash flow from
financing activities
|
|
|
|
|
Proceeds from related
party
|
4,393
|
638
|
|
1,583
|
Payment of capital
lease obligation
|
-
|
-
|
|
(302)
|
Change in notes
payable
|
(25,388)
|
(3,688)
|
|
1,270
|
|
|
|
|
|
Net cash provided by
(used in)financing activities
|
(20,995)
|
(3,050)
|
|
2,551
|
|
|
|
|
|
Effect of foreign
exchange rate changes
|
267
|
56
|
|
(19)
|
|
|
|
|
|
Net decrease in cash
and cash equivalent
|
8,585
|
1,264
|
|
(4,926)
|
|
|
|
|
|
Cash and cash
equivalent
|
|
|
|
|
At beginning of
period/year
|
13,343
|
1,922
|
|
14,355
|
At end of
period/year
|
21,928
|
3,186
|
|
9,429
|
|
|
|
|
|
SUPPLEMENTARY
DISCLOSURE:
|
|
|
|
|
Interest
paid
|
2,446
|
355
|
|
1,754
|
Income tax
paid
|
-
|
-
|
|
-
|
|
|
|
|
|
SUPPLEMENTARY
SCHEDULE OF NONCASH INVESTING AND FINANCIAL
ACTIVITIES:
|
|
|
|
|
Account payable for
plant and equipment:
|
1,231
|
179
|
|
2,121
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/fuwei-films-announces-its-unaudited-financial-results-for-the-first-quarter-of-2017-300460248.html
SOURCE Fuwei Films (Holdings) Co., Ltd.