-Teleconference to be held on Friday, August 18, 2017 at 9:00 am EDT-
BEIJING, Aug. 17, 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 three-month and
six-month periods ended June 30,
2017.
Second Quarter 2017 Financial Highlights
- Net sales during the second quarter ended June 30, 2017 were RMB70.1
million or US$10.3
million.
- Sales of specialty films were RMB25.6
million or US$3.8 million or
36.5% of our total revenues.
- Overseas sales were RMB15.8
million or US$2.3 million, or
22.5% of total revenues.
- Our gross profit was RMB5.0
million or US$0.7 million for
the second quarter ended June 30,
2017, representing a gross profit rate of 7.2%.
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."
Financial Results for the Three Months Ended June 30, 2017
Net sales during the second quarter ended June 30, 2017 were RMB70.1
million or US$10.3 million,
compared to RMB59.3 million during
the same period in 2016, representing an increase of RMB10.8 million or 18.2%. The increase of average
sales price caused an increase of RMB7.0
million and the sales volume increase caused an increase of
RMB3.8 million.
In the second quarter of 2017, sales of specialty films were
RMB25.6 million or US$3.8 million or 36.5% of our total revenues as
compared to RMB23.5 million or 39.7%
in the same period of 2016, which was an increase of RMB2.1 million, or 8.9% as compared to the same
period in 2016. The increase of average sales price caused an
increase of RMB0.3 million and the
increase in the sales volume caused an increase of RMB1.8 million. The increase was largely
attributable to the increase in sales volume.
Overseas sales were RMB15.8
million or US$2.3 million, or
22.5% of total revenues, compared with RMB11.2 million or 18.9% of total revenues in the
second quarter of 2016. The increase of average sales price caused
an increase of RMB1.9 million and the
increase in sales volume resulted in an increase of RMB2.7 million.
The following is a breakdown of PRC domestic and overseas sales
(amounts in thousands):
|
|
Three-Month
Period Ended
June 30, 2017
|
% of Total
|
Three-Month
Period Ended
June 30, 2016
|
% of Total
|
|
|
RMB
|
US$
|
RMB
|
Sales in
China
|
|
54,277
|
8,006
|
77.5%
|
48,106
|
81.1%
|
Sales in other
countries
|
|
15,789
|
2,329
|
22.5%
|
11,210
|
18.9%
|
|
|
|
|
|
|
|
|
|
70,066
|
10,335
|
100.0%
|
59,316
|
100.0%
|
Our gross profit was RMB5.0
million or US$0.7 million for
the second quarter ended June 30,
2017, representing a gross profit rate of 7.2%, as compared
to a gross profit rate of 9.5% for the same period in 2016.
Correspondingly, gross profit rate decreased by 2.3 percentage
point compared to the same period in 2016. Our average product
sales prices increased by 11.1% compared to the same period last
year while the average cost of goods sold increased by 13.9%
compared to the same period last year. Consequently, the amount of
increase in cost of goods sold was greater than that in sales
revenue during the second quarter ended June
30, 2017 compared with the same period in 2016, which
resulted in a decrease in our gross profit.
Operating expenses for the second quarter ended June 30, 2017 were RMB14.2
million or US$2.1 million, as
compared to RMB14.5 million for the
same period in 2016.
Net loss attributable to the Company during the second quarter
ended June 30, 2017 was RMB11.6 million or US$1.7
million compared to net loss attributable to the Company of
RMB10.2 million during the same
period in 2016, representing an increase of RMB1.4 million for the same period in 2016.
Basic and diluted net loss per share was RMB3.57 or US$0.53
and RMB3.12 for the three months
period ended June 30, 2017 and 2016,
respectively.
Total shareholders' equity was RMB241.2
million or US$35.58 million as
of June 30, 2017, compared with
RMB265.2 million as of December 31, 2016.
As of June 30, 2017, the Company
had 3,265,837 basic and diluted total ordinary shares
outstanding.
Financial Results for the Six Months Ended June 30, 2017
Net sales during the six-month period ended June 30, 2017 were RMB138.0 million or US$20.4 million, compared to RMB121.5 million in the same period in 2016,
representing an increase of RMB16.5
million or 13.6%. The increase in average sales price caused
an increase of RMB12.6 million and
the increase in the sales volume caused an increase of RMB3.9 million.
In the six-month period ended June 30,
2017, sales of specialty films were RMB47.3 million or US$7.0
million or 34.3% of our total revenues as compared to
RMB45.3 million or 37.3% in the same
period of 2016, which was an increase of RMB2.0 million, or 4.4% as compared to the same
period in 2016. The increase in the sales volume caused an increase
of RMB1.8 million and the increase in
average sales price caused an increase of RMB0.2 million.
Overseas sales during the six months ended June 30, 2017 were RMB29.0
million or US$4.3 million, or
21.0% of total revenues, compared with RMB23.7 million or 19.5% of total revenues in the
same period in 2016. This was RMB5.3
million higher than the same period in 2016. The increase in
sales volume resulted in an increase of RMB2.5 million and the increase in average sales
price caused an increase of RMB2.8
million.
The following is a breakdown of PRC domestic and overseas sales
(amounts in thousands):
|
|
Six-Month
Period Ended
June 30, 2017
|
% of Total
|
Six-Month
Period Ended
June 30, 2016
|
% of Total
|
|
|
RMB
|
US$
|
RMB
|
Sales in
China
|
|
109,008
|
16,080
|
79.0%
|
97,738
|
80.5%
|
Sales in other
countries
|
|
29,002
|
4,278
|
21.0%
|
23,725
|
19.5%
|
|
|
|
|
|
|
|
|
|
138,010
|
20,358
|
100.0%
|
121,463
|
100.0%
|
Our gross profit was RMB8.8
million or US$1.3 million for
the first six months ended June 30,
2017, representing a gross margin of 6.4%, as compared to a
gross loss rate of 9.2% for the same period in 2016.
Correspondingly, gross margin decreased by 2.8 percentage points.
Our average product sales prices increased by 10.0% compared to the
same period last year while the average cost of goods sold
increased by 13.5% compared to the same period last year.
Consequently, the amount of increase in cost of goods sold was
higher than that in sales revenue during the six months ended
June 30, 2017 compared with the same
period in 2016, which resulted in a decrease in our gross
margin.
Operating expenses for the six months ended June 30, 2017 were RMB28.0
million or US$4.1 million,
compared to RMB29.5 million in the
same period in 2016, which was RMB1.5
million lower than the same period in 2016. This decrease
was mainly due to decreased allowance for doubtful accounts
receivable.
Net loss attributable to the Company during the first half of
2017 was RMB23.8 million or
US$3.5 million compared to net loss
attributable to the Company of RMB22.3
million during the same period in 2016, representing an
increase of RMB1.5 million from the
same period in 2016 due to the factors described above.
Conference Call Information
The Company will host a teleconference on Friday, August 18, 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: 19863. The replay will be available
until September 18, 2017, at
09:00 a.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 trends affecting the
global economy, including the devaluation of the RMB by
China in August 2017; 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; 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.:
Ms. 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 JUNE 30,
2017 AND DECEMBER 31, 2016
(amounts in thousands
except share and per share value)
(Unaudited)
|
|
|
|
June 30,
2017
|
|
December 31,
2016
|
|
RMB
|
US$
|
|
RMB
|
ASSETS
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
16,452
|
2,427
|
|
13,343
|
Restricted
cash
|
|
30,001
|
4,425
|
|
73,421
|
Accounts and bills
receivable, net
|
|
29,039
|
4,283
|
|
29,453
|
Inventories
|
|
24,907
|
3,674
|
|
25,153
|
Advance to
suppliers
|
|
6,073
|
896
|
|
6,043
|
Prepayments and other
receivables
|
|
3,634
|
536
|
|
6,489
|
Deferred tax assets -
current
|
|
1,267
|
187
|
|
1,199
|
Total current
assets
|
|
111,373
|
16,428
|
|
155,101
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
389,373
|
57,436
|
|
410,654
|
Construction in
progress
|
|
2,588
|
382
|
|
431
|
Lease prepayments,
net
|
|
17,096
|
2,522
|
|
17,358
|
Advance to suppliers
- long term, net
|
|
2,118
|
312
|
|
1,861
|
Deferred tax assets -
non current
|
|
7,961
|
1,174
|
|
8,032
|
|
|
|
|
|
|
Total
assets
|
|
530,509
|
78,254
|
|
593,437
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Short-term
borrowings
|
|
49,500
|
7,302
|
|
60,000
|
Long-term loan,
current portion
|
|
1,625
|
240
|
|
3,300
|
Due to related
parties
|
|
147,069
|
21,694
|
|
131,747
|
Accounts
payables
|
|
19,092
|
2,816
|
|
20,581
|
Notes
payable
|
|
60,000
|
8,850
|
|
100,888
|
Advance from
customers
|
|
3,680
|
543
|
|
3,509
|
|
5,465
|
806
|
|
5,204
|
Total current
liabilities
|
|
286,431
|
42,251
|
|
325,229
|
|
|
|
|
|
|
Deferred tax
liabilities
|
|
2,880
|
425
|
|
2,997
|
|
|
|
|
|
|
Total
liabilities
|
|
289,311
|
42,676
|
|
328,226
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Registered capital(of
US$0.519008 par value; 5,000,000 shares authorized; 3,265,837
issued and outstanding)
|
|
13,323
|
1,965
|
|
13,323
|
Additional paid-in
capital
|
|
311,907
|
46,009
|
|
311,907
|
Statutory
reserve
|
|
37,441
|
5,523
|
|
37,441
|
(Accumulated
deficit)
|
|
(122,307)
|
(18,041)
|
|
(98,505)
|
Cumulative
translation adjustment
|
|
834
|
122
|
|
1,045
|
Total
shareholders' equity
|
|
241,198
|
35,578
|
|
265,211
|
Total
equity
|
|
241,198
|
35,578
|
|
265,211
|
Total liabilities
and equity
|
|
530,509
|
78,254
|
|
593,437
|
FUWEI FILMS
(HOLDINGS) CO., LTD. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
FOR THE THREE- AND
SIX-MONTH PERIODS ENDED JUNE 30, 2017 AND 2016
(amounts in thousands
except share and per share value)
(Unaudited)
|
|
|
|
The Three-Month
Period Ended
June 30,
|
|
The Six-Month
Period
Ended June 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
RMB
|
US$
|
|
RMB
|
|
RMB
|
US$
|
|
RMB
|
Net sales
|
|
70,066
|
10,335
|
|
59,316
|
|
138,010
|
20,358
|
|
121,463
|
Cost of
sales
|
|
65,041
|
9,594
|
|
53,690
|
|
129,228
|
19,062
|
|
110,248
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
5,025
|
741
|
|
5,626
|
|
8,782
|
1,296
|
|
11,215
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
3,701
|
546
|
|
3,340
|
|
7,207
|
1,063
|
|
6,289
|
Administrative
expenses
|
|
10,486
|
1,547
|
|
11,149
|
|
20,752
|
3,061
|
|
23,197
|
Total operating
expenses
|
|
14,187
|
2,093
|
|
14,489
|
|
27,959
|
4,124
|
|
29,486
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(9,162)
|
(1,352)
|
|
(8,863)
|
|
(19,177)
|
(2,828)
|
|
(18,271)
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
- Interest
income
|
|
217
|
32
|
|
134
|
|
503
|
74
|
|
352
|
- Interest
expense
|
|
(2,407)
|
(355)
|
|
(1,707)
|
|
(4,853)
|
(716)
|
|
(3,461)
|
- Others income
(expense), net
|
|
(342)
|
(50)
|
|
175
|
|
(389)
|
(57)
|
|
(1,354)
|
Total other
expenses
|
|
(2,532)
|
(373)
|
|
(1,398)
|
|
(4,739)
|
(699)
|
|
(4,463)
|
|
|
|
|
|
|
|
|
|
|
|
Loss before provision
for income taxes
|
|
(11,694)
|
(1,725)
|
|
(10,261)
|
|
(23,196)
|
(3,527)
|
|
(22,734)
|
Income tax
benefit
|
|
49
|
7
|
|
64
|
|
114
|
17
|
|
482
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(11,645)
|
(1,718)
|
|
(10,197)
|
|
(23,802)
|
(3,510)
|
|
(22,252)
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to non-controlling interests
|
|
-
|
-
|
|
-
|
|
-
|
-
|
|
-
|
Net loss attributable
to the Company
|
|
(11,645)
|
(1,718)
|
|
(10,197)
|
|
(23,802)
|
(3,510)
|
|
(22,252)
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
|
- Foreign currency
translation adjustments attributable to non-controlling
interest
|
|
-
|
-
|
|
(25)
|
|
-
|
-
|
|
(21)
|
- Foreign currency
translation adjustments attributable to the Company
|
|
(487)
|
(72)
|
|
(74)
|
|
(211)
|
(31)
|
|
(79)
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss
attributable to non-controlling interest
|
|
-
|
-
|
|
(25)
|
|
-
|
-
|
|
(21)
|
Comprehensive loss
attributable to the Company
|
|
(12,132)
|
(1,790)
|
|
(10,271)
|
|
(24,013)
|
(3,541)
|
|
(22,331)
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share,
Basic and diluted
|
|
(3.57)
|
(0.53)
|
|
(3.12)
|
|
(7.29)
|
(1.08)
|
|
(6.81)
|
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, 2017 AND 2016
(amounts in thousands
except share and per share value)
(Unaudited)
|
|
|
The Six-Month
Period Ended June 30,
|
|
|
2017
|
|
2016
|
|
|
RMB
|
US$
|
|
RMB
|
Cash flow from
operating activities
|
|
|
|
|
|
Net loss
|
|
(23,802)
|
(3,511)
|
|
(22,252)
|
Adjustments to
reconcile net loss to net cash
|
|
|
|
|
|
used in operating
activities
|
|
|
|
|
|
|
|
|
|
|
|
- Depreciation of
property, plant and equipment
|
|
21,728
|
3,205
|
|
21,364
|
- Amortization of
intangible assets
|
|
262
|
39
|
|
261
|
- Deferred income
taxes
|
|
(114)
|
(17)
|
|
(482)
|
- Bad debt
recovery
|
|
512
|
76
|
|
2,197
|
-Inventory
provision
|
|
(57)
|
(8)
|
|
(226)
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
- Accounts and bills
receivable
|
|
(98)
|
(14)
|
|
(13,076)
|
-
Inventories
|
|
303
|
45
|
|
1,869
|
- Advance to
suppliers
|
|
(30)
|
(4)
|
|
(2,699)
|
- Prepaid expenses and
other current assets
|
|
(1,104)
|
(163)
|
|
72
|
- Accounts
payable
|
|
(1,489)
|
(221)
|
|
(341)
|
- Accrued expenses and
other payables
|
|
288
|
42
|
|
(1,045)
|
- Advance from
customers
|
|
171
|
25
|
|
(308)
|
- Tax
payable
|
|
3,959
|
584
|
|
9,974
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
|
529
|
78
|
|
(4,692)
|
|
|
|
|
|
|
Cash flow from
investing activities
|
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(447)
|
(66)
|
|
(2,722)
|
Restricted cash
related to trade finance
|
|
43,421
|
6,405
|
|
(9,344)
|
Advanced to suppliers
- non current
|
|
(257)
|
(38)
|
|
(266)
|
Amount change in
construction in progress
|
|
(2,157)
|
(318)
|
|
(1,496)
|
|
|
|
|
|
|
Net cash provided by
(used in) investing activities
|
|
40,560
|
5,983
|
|
(13,828)
|
|
|
|
|
|
|
Cash flow from
financing activities
|
|
|
|
|
|
Principal payments of
bank loans
|
|
(1,675)
|
(247)
|
|
(1,675)
|
Proceeds from
short-term bank loans
|
|
(10,500)
|
(1,549)
|
|
-
|
Proceeds from related
party
|
|
15,322
|
2,260
|
|
3,167
|
Payment of capital
lease obligation
|
|
-
|
-
|
|
(302)
|
Change in notes
payable
|
|
(40,888)
|
(6,031)
|
|
11,450
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in)
provided by financing activities
|
|
(37,741)
|
(5,567)
|
|
12,640
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes
|
|
(239)
|
11
|
|
(29)
|
|
|
|
|
|
|
Net decrease(
increase) in cash and cash equivalent
|
|
3,109
|
505
|
|
(5,909)
|
|
|
|
|
|
|
Cash and cash
equivalent
|
|
|
|
|
|
At beginning of
period
|
|
13,343
|
1,922
|
|
14,355
|
At end of
period
|
|
16,452
|
2,427
|
|
8,446
|
|
|
|
|
|
|
SUPPLEMENTARY
DISCLOSURE:
|
|
|
|
|
|
Interest
paid
|
|
4,853
|
716
|
|
3,461
|
Income tax
paid
|
|
-
|
-
|
|
-
|
|
|
|
|
|
|
SUPPLEMENTARY
SCHEDULE OF NONCASH INVESTING AND FINANCIAL
ACTIVITIES:
|
Account payable for
plant and equipment:
|
|
1,398
|
206
|
|
2,354
|
Obligations for
acquired equipment under capital lease:
|
|
-
|
-
|
|
-
|
View original
content:http://www.prnewswire.com/news-releases/fuwei-films-announces-second-quarter-and-first-half-2017-unaudited-financial-results-300505557.html
SOURCE Fuwei Films (Holdings) Co., Ltd.