Notes to Consolidated Financial Statements
(amounts in thousands, except share and per
share data)
(1) Principal Activities and Reorganization
Fuwei Films (Holdings) Co., Ltd and its subsidiaries
(the “Company” or the “Group”) are principally engaged in the production and distribution of BOPET film,
a high quality plastic film widely used in packaging, imaging, electronics, electrical and magnetic products in the People’s
Republic of China (the “PRC”). The Company is a holding company incorporated in the Cayman Islands, established on
August 9, 2004 under the Cayman Islands Companies Law as an exempted company with limited liability. The Company was established
for the purpose of acquiring shares in Fuwei (BVI) Co., Ltd (“Fuwei (BVI)”), an intermediate holding company established
for the purpose of acquiring all of the ownership interest in Fuwei Films (Shandong) Co., Ltd.
On August 14, 2013, the Company announced that
it had received the first notice from the its controlling shareholder, the Weifang State-owned Assets Operation Administration
Company, a wholly-owned subsidiary of Weifang State-owned Asset Management and Supervision Committee (collectively, the “Administration
Company”) indicating that the Administration Company had determined to place control over 6,912,503 (or 52.9%) of its outstanding
ordinary shares up for sale at a public auction to be held in China. Four public auctions were held in Jinan, Shandong Province,
China. The Company learned that they failed due to a lack of bidders registered for the auction. On March 25, 2014, the fifth public
auction was held in Jinan, Shandong Province, China. The beneficial ownership of 6,912,503 ordinary shares of the Company previously
owned by the Administration Company through Apex Glory Holdings Limited, a British Virgin Islands corporation, was bid by Shandong
SNTON Optical Materials Technology Co., Ltd (“Shandong SNTON”) through the public auction. Shandong SNTON got 6,912,503
(or 52.9%) of the Company’s outstanding ordinary shares at a price of RMB101,800 (approximately US$16,573) or approximately
US$2.40 per ordinary share.
On May 12, 2014, the Company
announced that it had learned that the successful bidder, Shandong SNTON in the fifth public auction of 6,912,503 (or 52.9%)
of the Company’s outstanding ordinary shares (the “Shares”) held on March 25, 2014, was entrusted by
Hongkong Ruishang International Trade Co., Ltd., a Hong Kong corporation, (“Hongkong Ruishang”) to handle all the
formalities and procedure in connection with the public auction. As a result of the entrusted arrangement, the Company
believes Hongkong Ruishang is the party controlling the Shares acquired in the fifth public auction. According to publicly
available information in the People’s Republic of China, Shandong SNTON is a wholly owned subsidiary of Shandong SNTON
Group Co., Ltd. (the “SNTON Group”). Mr. Xiusheng Wang, the chairman of the Board of Directors of Shandong SNTON
Group Co., Ltd., is also Hongkong Ruishang’s chairman.
On May 14, 2014, the Company announced that
it received a notification from Shandong Fuhua Investment Company Limited. (“Shandong Fuhua”) with respect to an entire
ownership transfer of the Company’s 12.55% outstanding ordinary shares from the Administration Company to Shandong Fuhua.
The Administration Company originally held these shares indirectly through an intermediate holding company, Easebright Investments
Limited (“Easebright”). As a result of this transfer, Shandong Fuhua indirectly owns 12.55% of the outstanding ordinary
shares of the Company through Easebright. Mr. Jingang Yang has been appointed as the director of Easebright.
(2) Basis of Presentation
The Group’s consolidated financial statements
are presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”),
as set forth in the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) and we consider
the various staff accounting bulletins and other applicable guidance issued by the United States Securities and Exchange Commission
(SEC).
This basis of accounting differs in certain
material respects from that used in the preparation of the books of account of Shandong Fuwei, the Company’s principal subsidiary,
which are prepared in accordance with the accounting principles and the relevant financial regulations applicable to enterprises
limited by shares as established by the Ministry of Finance of the PRC (“PRC GAAP”), the accounting standards used
in the country of its domicile. The accompanying consolidated financial statements reflect necessary adjustments not recorded in
the books of account of the Company’s subsidiaries to present them in conformity with U.S. GAAP.
(3) Summary of Significant Accounting Policies and Practices
(a) Principles of Consolidation
The consolidated financial statements include
the financial statements of the Company and its two subsidiaries, including, Fuwei Films (BVI) Co., Ltd., and Fuwei Films (Shandong)
Co., Ltd.. All significant intercompany balances and transactions have been eliminated in consolidation.
(b) Foreign Currency Transactions
The Group’s reporting currency is the Chinese Yuan (“Renminbi”
or “RMB”).
The Company and Fuwei (BVI) operate in Hong
Kong as investment holding companies and their financial records are maintained in Hong Kong dollars, being the functional currency
of these two entities. Assets and liabilities are translated into RMB at the exchange rates at the balance sheet date, equity accounts
are translated at historical exchange rates and income, expenses, and cash flow items are translated using the average rate for
the period. The translation adjustments are recorded in accumulated other comprehensive income in the statements of equity.
Transactions denominated in currencies other
than RMB are translated into RMB at the exchange rates quoted by the People’s Bank of China (the “PBOC”) prevailing
at the dates of transactions. Monetary assets and liabilities denominated in foreign currencies are translated into RMB using the
applicable exchange rates quoted by the PBOC at the balance sheet dates. The resulting exchange differences are recorded in the
statements of operations.
Commencing from July 21, 2005, the PRC government
moved the RMB into a managed floating exchange rate regime based on market supply and demand with reference to a basket of currencies.
For the convenience of the readers, the RMB
amounts for the year of 2017 included in the accompanying consolidated financial statements in our annual report has been translated
into U.S. dollars at the rate of US$1.00 = RMB 6.5063, being the noon buy rate for U.S. dollars in effect on December 31, 2017
in the City of New York for cable transfer in RMB per U.S. dollar as certified for custom purposes by the Federal Reserve Bank.
No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollar at that rate or at any
other certain rate on December 31, 2017, or at any other date.
RMB is not fully convertible into foreign currencies.
All foreign exchange transactions involving RMB must take place either through the PBOC or other institutions authorized to buy
and sell foreign currency. The exchange rate adopted for the foreign exchange transactions are the rates of exchange quoted by
the PBOC which are determined largely by supply and demand.
(c) Cash and Cash Equivalents and Restricted Cash
For statements of cash flow purposes, the Company
considers all cash on hand and in banks, including certificates of deposit and other highly-liquid investments with maturities
of three months or less, when purchased, to be cash and cash equivalents.
As of December 31, 2017 and 2016, there were
cash and cash equivalents of RMB12,963 (US$1,992) and RMB13,343, respectively.
As of December 31, 2017 and 2016, there were
restricted cash of RMB56,501 (US$8,684) and RMB73,421, respectively, as deposit in bank for letters of credit and banker’s
acceptance bill.
(d) Trade Accounts Receivable
Trade accounts receivable are recorded at the
invoiced amount after deduction of trade discounts, value added taxes and allowances, if any, and do not bear interest. The allowance
for doubtful accounts is the Group’s best estimate of the amount of probable credit losses in the Group’s existing
accounts receivable. The Group determines the allowance based on historical write-off experience, customer specific facts and economic
conditions.
The Group reviews its allowance for doubtful
accounts monthly. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. All
other balances are reviewed on a pooled basis by aging of such balances. Account balances are charged off against the allowance
after all means of collection have been exhausted and the potential for recovery is considered remote. The allowance for doubtful
accounts as of December 31, 2017 and 2016 was RMB2,467 (US379) and RMB3,213, respectively.
(e) Inventories
Inventories are stated at the lower of cost
or market value as of balance sheet date. Inventory valuation and cost-flow is determined using Moving Weighted Average Method
basis. The Group estimates excess and slow moving inventory based upon assumptions of future demands and market conditions. If
actual market conditions are less favorable than projected by management, additional inventory write-downs may be required. Cost
of work in progress and finished goods comprises direct material, direct production cost and an allocated portion of production
overheads based on normal operating capacity.
(f) Property, Plant and Equipment
Property, plant and equipment are stated at cost less accumulated
depreciation and allowance for fixed assets impairment.
Depreciation on property, plant and equipment
is calculated on the straight-line method (after taking into account their respective estimated residual values) over the estimated
useful lives of the assets as follows:
|
|
Years
|
Buildings and improvements
|
|
25 – 30
|
Plant and equipment
|
|
10 – 15
|
Computer equipment
|
|
5
|
Furniture and fixtures
|
|
5
|
Motor vehicles
|
|
5
|
Depreciation related to abnormal amounts from
idle capacity is charged to administrative expenses for the period incurred. Total depreciations for the years ended December 31,
2017, 2016 and 2015 were RMB42,877 (US$6,590), RMB43,193 and RMB44,515 respectively, of which 39.6%, 37.9% and 56.5% was recorded
in cost of goods sold and 60.4%, 62.1% and 43.5% was recorded in administrative and selling expenses, respectively.
Construction in progress represented capital
expenditure in respect of the BOPET productions line. No depreciation is provided in respect of construction in progress.
(g) Leased Assets
An arrangement, comprising a transaction or
a series of transactions, is or contains a lease if the Group determines that the arrangement conveys a right to use a specific
asset or assets for an agreed period of time in return for a payment or a series of payments. Such a determination is made based
on an evaluation of the substance of the arrangement and is regardless of whether the arrangement takes the legal form of a lease.
Classification of assets leased to the Group.
Assets that are held by the Group under leases which transfer to the Group substantially all the risks and rewards of ownership
are classified as being held under capital leases. Leases which do not transfer substantially all the risks and rewards of ownership
to the Group are classified as operating leases.
Assets acquired under capital leases. Where
the Group acquires the use of assets under capital leases, the amounts representing the fair value of the leased asset, or, if
lower, the present value of the minimum lease payments, of such assets are included in property, plant and equipment and the corresponding
liabilities, net of finance charges, are recorded as obligations under capital leases. Depreciation is provided at rates which
write off the cost or valuation of the assets over the term of the relevant lease or, where it is likely the Group will obtain
ownership of the asset, the life of the asset. Finance charges implicit in the lease payments are charged to the consolidated income
statement over the period of the leases so as to produce an approximately constant periodic rate of charge on the remaining balance
of the obligations for each accounting period. Contingent rentals are charged to the consolidated income statement in the accounting
period in which they are incurred.
Operating lease charges. Where the Group has
the use of assets held under operating leases, payments made under the leases are charged to the consolidated income statement
in equal installments over the accounting periods covered by the lease term, except where an alternative basis is more representative
of the pattern of benefits to be derived from the leased asset. Lease incentives received are recognized in the consolidated income
statement as an integral part of the aggregate net lease payments made. Contingent rentals are charged to the consolidated income
statement in the accounting period in which they are incurred.
Sale and leaseback transactions. Gains or losses
on equipment sale and leaseback transactions which result in capital leases are deferred and amortized over the terms of the related
leases. Gains or losses on equipment sale and leaseback transactions which result in operating leases are recognized immediately
if the transactions are established at fair value. Any loss on the sale perceived to be a real economic loss is recognized immediately.
However, if a loss is compensated for by future rentals at a below-market price, then the artificial loss is deferred and amortized
over the period that the equipment is expected to be used. If the sale price is above fair value, then any gain is deferred and
amortized over the useful life of the assets.
(h) Lease Prepayments
Lease prepayments represent the costs of land
use rights in the PRC. Land use rights are carried at cost and charged to expense on a straight-line basis over the respective
periods of rights of 30 years. The current portion of lease prepayments has been included in prepayments and other receivables
in the balance sheet.
(i) Goodwill
Goodwill represents the excess of purchase
price and related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Goodwill
is not amortized but is tested for impairment annually, or when circumstances indicate a possible impairment may exist. Impairment
testing is performed at a reporting unit level. An impairment loss generally would be recognized when the carrying amount
of the reporting unit exceeds the fair value of the reporting unit, with the fair value of the reporting unit determined using
a discounted cash flow (DCF) analysis. A number of significant assumptions and estimates are involved in the application of
the DCF analysis to forecast operating cash flows, including the discount rate, the internal rate of return, and projections of
realizations and costs to produce. Management considers historical experience and all available information at the time the
fair values of its reporting units are estimated. Goodwill was determined to be fully impaired during the year ended December 31,
2012.
(j) Impairment of Long-lived Assets
The Company recognizes an impairment
loss when circumstances indicate that the carrying value of long-lived assets with finite lives may not be recoverable.
Management’s policy in determining whether an impairment indicator exists, a triggering event, comprises measurable
operating performance criteria at an asset group level as well as qualitative measures. If an analysis is necessitated by the
occurrence of a triggering event, the Company uses assumptions, which are predominately identified from the Company’s
strategic long-range plans, in determining the impairment amount. In the calculation of the fair value of long-lived assets,
the Company compares the carrying amount of the asset group with the estimated future cash flows expected to result from the
use of the assets. If the carrying amount of the asset group exceeds the estimated expected undiscounted future cash flows,
the Company measures the amount of the impairment by comparing the carrying amount of the asset group with their estimated
fair value. We estimate the fair value of assets based on market prices (i.e., the amount for which the asset could be bought
by or sold to a third party), when available. When market prices are not available, we estimate the fair value of the asset
group using discounted expected future cash flows at the Company’s weighted-average cost of capital. Management
believes its policy is reasonable and is consistently applied. Future expected cash flows are based upon estimates that, if
not achieved, may result in significantly different results. Considering the indivisibility of land and plant and the
commonality of equipments, staff and technology, we take fixed assets and intangible assests as the group of assets. The
accumulated loss on impairment of assets as of December 31, 2017 was RMB7,219 (US$1,114), respectively.
(k) Revenue Recognition
Sales of plastic flexible packaging materials
are reported, net of value added taxes (“VAT”), sales returns, trade discounts. The standard terms and conditions under
which the Group generally delivers allow a customer the right to return product for refund only if the product does not conform
to product specifications; the non-conforming product is initially identified by customer, and the customer notifies the Group
about the situation. After receiving the Group’s permission, the non-conforming product may be returned for replacement or
refund. The Group recognizes revenue when products are delivered and the customer takes ownership and assumes risk of loss, collection
of the relevant receivable is probable, persuasive evidence of an arrangement exists and the sale price is fixed or determinable.
In the PRC, VAT of 17% on invoice amount is
collected in respect of the sales of goods on behalf of tax authorities. The VAT collected is not revenue of the Group; instead,
the amount is recorded as a liability on the consolidated balance sheet until such VAT is paid to the authorities.
(l) Research and Development Costs
Research and development expenditures are expensed
as incurred. Research and development costs amounted to RMB9,464 (US$1,455), RMB3,577, and RMB3,619 for the year ended December
31, 2017, 2016 and 2015 and such costs were recorded in administrative expenses.
(m) Income Taxes
Income taxes are accounted for under the asset
and liability method. Under guidance contained in FASB ASC 740-10, deferred tax assets and liabilities are recognized for the future
tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities
and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured
using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be
recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the
period that includes the enactment date. We follow the recognition and disclosure provisions under guidance contained in FASB ASC
740-10-25. Under this guidance, tax positions are evaluated for recognition using a more-likely-than-not threshold, and those tax
positions requiring recognition are measured as the largest amount of tax benefit that is greater than fifty percent likely of
being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. We only recognized
deferred tax assets for the loss 2017 after considering the possibility of realizing the benefits under the conservatism principle.
(n) Loss per Share
Basic earnings (loss) per share is computed
by dividing net earnings (loss) by the weighted average number of ordinary shares outstanding during the year. Diluted earnings
(loss) per share is calculated by dividing net earnings (loss) by the weighted average number of ordinary and dilutive potential
ordinary shares outstanding during the year. Diluted potential ordinary shares consist of shares issuable pursuant to stock option
plan.
On December 5, 2016, we held an extraordinary
general meeting of shareholders pursuant to which a 1-for-4 reverse stock split of our authorized ordinary shares, accompanied
by a corresponding decrease in our issued and outstanding ordinary shares and an increase of the par value of each ordinary share
from $0.129752 to US$0.519008 (the “Reverse Stock Split”), was approved by our shareholders of record. All references
made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively
adjusted to reflect the 1-for-4 reverse stock split.
(o) Use of Estimates
The preparation of the consolidated financial
statements in accordance with U.S. GAAP requires management of the Group to make a number of estimates and assumptions relating
to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated
financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ
from those estimates. On an ongoing basis, management reviews its estimates and assumptions including those related to the recoverability
of the carrying amount and the estimated useful lives of long-lived assets, valuation allowances for accounts receivable and realizable
values for inventories. Changes in facts and circumstances may result in revised estimates.
(p) Non-controlling interest
Non-controlling interest represents the portion
of equity that is not attributable to the Company. The net income (loss) attributable to noncontrolling interests are separately
presented in the accompanying statements of income and other comprehensive income. Losses attributable to noncontrolling interests
in a subsidiary may exceed the interest in the subsidiary’s equity. The related noncontrolling interest continues to be attributed
its share of losses even if that attribution results in a deficit of the noncontrolling interest balance. In December 2016, Fuwei
USA was written off.
(q) Segment Reporting
The Group uses the “management approach”
in determining reportable operating segments. The management approach considers the internal organization and reporting used by
the Group’s chief operating decision maker for making operating decisions and assessing performance as the source for determining
the Group’s reportable segments. Management, including the chief operating decision maker, reviews operating results solely
by monthly revenue of BOPET film (but not by sub-product type or geographic area) and operating results of Shandong Fuwei, the
operating subsidiary in the PRC. As such, the Group has determined that the Group has a single operating segment.
(r) Contingencies
In the normal course of business, the Group
is subject to contingencies, including legal proceedings and claims arising out of the business that relate to a wide range of
matters, including among others, product liability. The Group recognizes a liability for such contingency if it determines it is
probable that a loss has occurred and a reasonable estimate of the loss can be made. The Group may consider many factors in making
these assessments including past history and the specifics of each matter.
(s) Reclassification
Certain reclassifications have been made to
the fiscal year 2017 and 2016 consolidated financial statements to conform to the fiscal 2017 consolidated financial statement
presentation. These reclassifications had no effect on net loss or cash flows as previously reported.
(t) Going Concern Matters
The accompanying consolidated financial statements
have been prepared in conformity with generally accepted accounting principles which contemplate continuation of the company as
a going concern. However, as of December 31, 2017, the Company had a working capital deficiency of RMB172,933 (US$26,579) and accumulated
deficit of RMB46,003 (US$7,070) from net losses incurred during the year of 2017. Confronted with the fierce competition in the
BOPET industry in China, the Company may still witness losses over the next twelve months. The ability of the Company to operate
as a going concern depends upon its ability to obtain outside sources of working capital and/or generate positive cash flow from
operations. The Company may not have sufficient working capital to meet its planned operating activities over the next twelve months.
These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans
regarding these matters are described as per follows: The Company accordingly has developed an outside financing plan to meet the
need of working capital for our operation or debts. At the same time, the Company will continue implementing cost reductions on
both manufacturing costs and operating expenses to improve profit margins. The accompanying consolidated financial statements do
not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification
of liabilities that might result should the Company be unable to continue as a going concern.
(u) Recently Issued Accounting Standards
Revenue
Recognition:
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers
(Topic 606) (ASU 2014-09), which amends the existing accounting standards for revenue recognition. In August 2015, the FASB issued
ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which delays the effective
date of ASU 2014-09 by one year. The FASB also agreed to allow entities to choose to adopt the standard as of the original effective
date. In March 2016, the FASB issued Accounting Standards Update No. 2016-08, Revenue from Contracts with Customers (Topic 606):
Principal versus Agent Considerations (Reporting Revenue Gross versus Net) (ASU 2016-08) which clarifies the implementation guidance
on principal versus agent considerations. The guidance includes indicators to assist an entity in determining whether it controls
a specified good or service before it is transferred to the customers. The new revenue recognition standard will be effective for
us in the first quarter of 2018, with the option to adopt it in the first quarter of 2017. We currently anticipate adopting the
new standard effective January 1, 2018. The new standard also permits two methods of adoption: retrospectively to each prior reporting
period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance
recognized at the date of initial application (the modified retrospective method). We currently anticipate adopting the standard
using the modified retrospective method. We are still in the process of completing our analysis on the impact this guidance will
have on our consolidated financial statements and related disclosures. The adoption of this ASU is not expected to have a material
impact on the Company's consolidated financial statements.
January
1, 2018, we have substantially completed our review of the impact of this guidance across our film-products processing and selling
business and revenue-related activities, and do not expect the adoption of this standard to have a material impact on our reported
revenues in our consolidated financial statements, revenue recognition processes. We are reviewing our disclosures for revenue
recognition and do not anticipate significant changes will be needed to conform to the disclosure requirements of the new guidance.
In 2017,
we established a cross-functional implementation team consisting of representatives from across all of our business departments.
We utilized a bottoms-up approach to analyze the impact of the standard on our contract portfolio by reviewing our current accounting
policies and practices to identify potential differences that would result from applying the requirements of the new standard to
our revenue contracts. Based on the evaluation for our sales contracts under the ASC 606 requirement of following the five-step
actions to judge revenue recognition, we usually recognize our revenue when the film-products have been delivered to our customers
and all the risks relating to the goods have been transferred, and rights of payment for delivered goods have been vested as well.
The impact
to our results is not material because the analysis of our contracts under the new revenue recognition standard supports the recognition
of revenue over the past time.We continue to monitor additional changes, modifications, clarifications or interpretations undertaken
by the FASB, which may impact our current conclusions.
Financial
Instrument
In January
2016, the FASB issued ASU No. 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of
Financial Assets and Financial Liabilities” (“ASU 2016-01”). The standard addresses certain aspects of recognition,
measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for fiscal years, and interim periods
within those years, beginning after December 15, 2017, and early adoption is not permitted. Accordingly, the standard is effective
for us on September 1, 2018. The Company is currently evaluating the impact that the standard will have on the Company’s
consolidated financial statements.
Leases
In February
2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-2”), which provides guidance on lease amendments
to the FASB Accounting Standard Codification. This ASU will be effective for us beginning in May 1, 2019. The Company is currently
in the process of evaluating the impact of the adoption of ASU 2016-2 on the Company’s consolidated financial statements.
Stock-based
Compensation
In March
2016, the FASB issued ASU 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment
Accounting (ASU 2016-09). ASU 2016-09 changes how companies account for certain aspects of stock-based awards to employees, including
the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement
of cash flows. ASU 2016-09 is effective for us in the first quarter of 2018, and earlier adoption is permitted. We are still evaluating
the effect that this guidance will have on our consolidated financial statements and related disclosures.
Financial
Instruments - Credit Losses
In June
2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): The amendments in this Update require a financial
asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected.
The amendments broaden the information that an entity must consider in developing its expected credit loss estimate for assets
measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate
of expected credit loss, which will be more decision useful to users of the financial statements. ASU 2016-13 is effective for
the Company for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption
is allowed as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company
is still evaluating the effect that this guidance will have on the Company’s consolidated financial statements and related
disclosures.
Other pronouncements issued
by the FASB or other authoritative accounting standards group with future effective dates are either not applicable or not significant
to the consolidated financial statements of the Company.
(4) Accounts and Bills Receivable, net
Accounts receivable consisted of the following:
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
Accounts receivable
|
|
|
18,588
|
|
|
|
2,857
|
|
|
|
17,052
|
|
Less: Allowance for doubtful accounts
|
|
|
(2,467
|
)
|
|
|
(379
|
)
|
|
|
(3,213
|
)
|
|
|
|
16,121
|
|
|
|
2,478
|
|
|
|
13,839
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bills receivable
|
|
|
4,002
|
|
|
|
615
|
|
|
|
15,614
|
|
|
|
|
20,123
|
|
|
|
3,093
|
|
|
|
29,453
|
|
An analysis of the allowance for doubtful accounts for 2017, 2016
and 2015 is as follows:
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
|
December 31, 2015
|
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
Balance at beginning of year
|
|
|
3,213
|
|
|
|
494
|
|
|
|
747
|
|
|
|
825
|
|
Bad debt (recovery) expense
|
|
|
(746
|
)
|
|
|
(115
|
)
|
|
|
2,466
|
|
|
|
(78
|
)
|
Write-offs
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at end of year
|
|
|
2,467
|
|
|
|
379
|
|
|
|
3,213
|
|
|
|
747
|
|
The Group has a credit policy in place and
the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on all customers requiring credit
over a certain amount. These receivables are due within 7 to 90 days from the date of billing. Normally, the Group does not obtain
collateral from customers.
(5) Inventories
Inventories consisted of the following:
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
Raw materials
|
|
|
19,626
|
|
|
|
3,016
|
|
|
|
21,463
|
|
Work-in-progress
|
|
|
1,277
|
|
|
|
196
|
|
|
|
1,072
|
|
Finished goods
|
|
|
9,195
|
|
|
|
1,413
|
|
|
|
6,796
|
|
Consumables and spare parts
|
|
|
600
|
|
|
|
94
|
|
|
|
602
|
|
Allowance for obsolescence
|
|
|
(6,120
|
)
|
|
|
(941
|
)
|
|
|
(4,780
|
)
|
|
|
|
24,578
|
|
|
|
3,778
|
|
|
|
25,153
|
|
(6) Prepayments and Other Receivables
Prepayments and other receivables consisted
of the following:
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
Lease prepayments, current portion
|
|
|
524
|
|
|
|
81
|
|
|
|
524
|
|
Other receivables
|
|
|
880
|
|
|
|
135
|
|
|
|
5,965
|
|
|
|
|
1,404
|
|
|
|
216
|
|
|
|
6,489
|
|
(7) Property, Plant and Equipment
Property, plant and equipment consisted of
the following:
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
Buildings
|
|
|
68,319
|
|
|
|
10,500
|
|
|
|
68,319
|
|
Plant and equipment
|
|
|
803,710
|
|
|
|
123,528
|
|
|
|
799,067
|
|
Computer equipment
|
|
|
3,075
|
|
|
|
473
|
|
|
|
2,484
|
|
Furniture and fixtures
|
|
|
13,815
|
|
|
|
2,123
|
|
|
|
14,668
|
|
Motor vehicles
|
|
|
1,936
|
|
|
|
298
|
|
|
|
2,094
|
|
|
|
|
890,855
|
|
|
|
136,922
|
|
|
|
886,632
|
|
Less: accumulated depreciation
|
|
|
(512,578
|
)
|
|
|
(78,781
|
)
|
|
|
(468,759
|
)
|
Impairment of plant and equipment
|
|
|
(7,219
|
)
|
|
|
(1,110
|
)
|
|
|
(7,219
|
)
|
|
|
|
371,058
|
|
|
|
57,031
|
|
|
|
410,654
|
|
All of the Group’s buildings are located
in the PRC. As of December 31, 2017 and 2016, property, plant plus land use rights with carrying value totaling RMB54,598 (US$8,391)
and RMB57,144 respectively were pledged to banks as collateral for credit limits and loans(see Note 12).
As of December 31, 2017, the mortgaged floor
area of facilities and land use right to the bank is 46,196 square meters and 74,251 square meters, respectively.
(8) Lease Prepayments
The balance represents the lease prepayments of land use rights
of the Group as follows:
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
Non-current portion
|
|
|
16,830
|
|
|
|
2,587
|
|
|
|
17,358
|
|
Current portion - amount charged to expense next year
|
|
|
524
|
|
|
|
81
|
|
|
|
524
|
|
|
|
|
17,354
|
|
|
|
2,668
|
|
|
|
17,882
|
|
As of December 31, 2017, part of prepaid land
use rights were pledged to banks as collateral for credit limit in bank (see Note 12).
Land use rights amortization for
the year ended December 31, 2017, 2016 and 2015 were RMB524 (US$81), RMB524 and RMB524, respectively.
As of December 31, 2017, prepaid land use rights
of the Group included certain parcels of land located in Weifang City, Shandong Province, the PRC, with a net book value of RMB15,623
or US$2,401. The land use rights for land with area of approximately 43,878 square meters, 30,373 square meters will expire in
November 2050 and May 2053, respectively.
(9) Advance to suppliers
Historically, we have significant working capital
commitments because suppliers of PET resin and additives -based raw materials require us to make prepayments in advance of shipment.
Besides, we may make prepayments related to some equipment purchases based on arrangement of contract. Our prepayments to suppliers
were recorded either as advances to suppliers, if they are expected to be utilized within 12 months as of balance sheet date, or
as long-term prepayments, which was included in the line item “advance to suppliers –long term” in our consolidated
balance sheet, if they represented the portion expected to be utilized after 12 months. As of December 31, 2017 and 2016, the current
portion of advance to suppliers was RMB3,898 (US$599) and RMB6,043, respectively. The noncurrent portion of advance to suppliers
was RMB1,570 (US$241) and RMB1,861, respectively.
(10) SHORT-TERM BORROWINGS AND LONG-TERM LOAN
Short-term borrowings and long-term loan consisted of the following:
|
|
Interest
rate per
|
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
Lender
|
|
annum
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
BANK LOANS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank of SPD.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- November 16, 2016 to November16, 2017
|
|
|
5.22
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
15,000
|
|
Bank of Weifang.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- July 15, 2016 to July 15, 2017
|
|
|
7.5
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
19,500
|
|
- July 15, 2016 to July 15, 2017
|
|
|
7.5
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
15,000
|
|
- July 20, 2016 to July 20, 2017
|
|
|
7.5
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
6,400
|
|
- July 20, 2016 to July 20, 2017
|
|
|
7.5
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
1,800
|
|
- July 20, 2016 to July 20, 2017
|
|
|
7.5
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
2,300
|
|
- July 28, 2017 to July 28, 2018
|
|
|
6.5
|
%
|
|
|
50,000
|
|
|
|
7,685
|
|
|
|
-
|
|
Weifang Dongfang State-owned Assets Management Co., Ltd.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- October 19, 2009 to October 18, 2017
|
|
|
4.41
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
3,300
|
|
|
|
|
|
|
|
|
50,000
|
|
|
|
7,685
|
|
|
|
63,300
|
|
Less: amounts classified as short-term loan
|
|
|
|
|
|
|
(50,000
|
)
|
|
|
(7,685
|
)
|
|
|
(60,000
|
)
|
Less: long-term loan, current portion;
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,300
|
)
|
Long-term Loan
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Notes:
The principal amounts of the above loans are
repayable at the end of the loan period.
In April 2014, we obtained a loan for a total
amount of RMB105,000 from Shandong SNTON Optical Materials Technology Co., Ltd. (the “Shandong SNTON”) to pay off certain
short-term loans due to Bank of Communications Co., Ltd. The interest shall be calculated at the benchmark rate, plus an additional
20% of the said benchmark rate, for the loan of the same term announced by the People’s Bank of China. The interest must
be paid quarterly and settled in full at the end of the year. As of December 31, 2014, the principal of this loan and the interest
have not been paid. In March 2015, we entered into a supplemental agreement with Shandong SNTON pursuant to which the parties agreed
that we will pay off the principal of this loan plus interest upon availability of new loans from banks or other financial institutions.
In November 2017, SNTON Group provided us with
a loan for the amount of RMB20,000.
Bank loans outstanding, which are all denominated
in Renminbi, are secured and guaranteed as follows:
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
|
December 31, 2015
|
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
Secured by:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property plant and equipment, Land use right
|
|
|
50,000
|
|
|
|
7,685
|
|
|
|
60,000
|
|
|
|
|
|
Bills receivable
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Guarantee company
|
|
|
-
|
|
|
|
-
|
|
|
|
3,300
|
|
|
|
6,650
|
|
Restricted cash
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
50,000
|
|
|
|
7,685
|
|
|
|
63,330
|
|
|
|
6,650
|
|
(11) Notes Payable
The credit line amounting to RMB50,000 (US$7,685)
granted by Bank of Weifang was secured by a pledge of plant and land use right. The credit lines was used to purchase raw materials.
The term of the credit line granted by Bank of Weifang is from July 2017 to July 2018. As of December 31, 2017, the amount of credit
line granted by Bank of Weifang was all used.
As of December 31, 2017, Shandong Fuwei had
banker’s acceptances opened with a maturity from three to six months totaling RMB67,900 (US$10,436) for payment in connection
with raw materials on a total deposits of RMB26,450 (US$4,065) and RMB30,000 (US$4,611) at SPD Bank and Bank of Weifang, respectively.
Notes payable consisted of the following:
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
Issuing bank
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
SPD Bank
|
|
|
37,900
|
|
|
|
5,825
|
|
|
|
70,920
|
|
Bank of Weifang
|
|
|
30,000
|
|
|
|
4,611
|
|
|
|
29,968
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
67,900
|
|
|
|
10,436
|
|
|
|
100,888
|
|
(12) Accrued Expenses and Other Payables
Accrued expenses and other payables consisted of the following:
|
|
December 31,2017
|
|
|
December 31,2016
|
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
Other payables
|
|
|
5,268
|
|
|
|
810
|
|
|
|
5,204
|
|
|
|
|
5,268
|
|
|
|
810
|
|
|
|
5,204
|
|
(13) Revenues
The Company’s revenue is primarily derived
from the manufacture and sale of plastic flexible packaging materials.
During the fiscal year ended December 31, 2017,
net revenues were RMB290,706 (US$44,681), compared to RMB253,926 during the same period in 2016, representing an increase of RMB36,780
or 12.7%, mainly due to the increase of average sales price by 12.3% caused by the increase in the price of main raw materials.
For further analysis of the factors causing revenue increase, the increase of average sales price caused an increase of RMB31,953
and sales volume factor made an increase of RMB4,827.
The following table shows the distribution
of the Company’s revenue by the geographical location of customers, whereas all the Company’s assets are located in
the PRC:
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
|
December 31, 2015
|
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
Sales in China
|
|
|
235,143
|
|
|
|
36,141
|
|
|
|
212,129
|
|
|
|
194,226
|
|
Sales in other countries (principally Europe, Asia and North America)
|
|
|
55,563
|
|
|
|
8,540
|
|
|
|
41,797
|
|
|
|
54,636
|
|
|
|
|
290,706
|
|
|
|
44,681
|
|
|
|
253,926
|
|
|
|
248,862
|
|
Overseas sales were RMB55,563 (US$8,540,) or
19.1% of total revenues, compared with RMB41,797 or 16.5% of total revenues in 2016. For further analysis of the factors causing
revenue increase, the increase of average sales price caused an increase of RMB5,502 and sales volume factor made an increase of
RMB8,264.
The Company’s revenue by significant types of films for 2017,
2016 and 2015 was as follows:
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
|
December 31, 2015
|
|
|
|
RMB
|
|
|
US$
|
|
|
% of Total
|
|
|
RMB
|
|
|
% of Total
|
|
|
RMB
|
|
|
% of Total
|
|
Stamping and transfer film
|
|
|
116,396
|
|
|
|
17,891
|
|
|
|
40.0
|
%
|
|
|
95,705
|
|
|
|
37.8
|
%
|
|
|
103,520
|
|
|
|
41.6
|
%
|
Printing film
|
|
|
24,779
|
|
|
|
3,808
|
|
|
|
8.5
|
%
|
|
|
20,366
|
|
|
|
8.0
|
%
|
|
|
29,605
|
|
|
|
11.9
|
%
|
Metallized film
|
|
|
8,431
|
|
|
|
1,296
|
|
|
|
2.9
|
%
|
|
|
7,391
|
|
|
|
2.9
|
%
|
|
|
9,010
|
|
|
|
3.6
|
%
|
Specialty film
|
|
|
108,089
|
|
|
|
16,612
|
|
|
|
37.2
|
%
|
|
|
96,091
|
|
|
|
37.8
|
%
|
|
|
73,851
|
|
|
|
29.7
|
%
|
Base film for other applications
|
|
|
33,011
|
|
|
|
5,074
|
|
|
|
11.4
|
%
|
|
|
34,373
|
|
|
|
13.5
|
%
|
|
|
32,876
|
|
|
|
13.2
|
%
|
|
|
|
290,706
|
|
|
|
44,681
|
|
|
|
100.0
|
%
|
|
|
253,926
|
|
|
|
100.0
|
%
|
|
|
248,862
|
|
|
|
100.0
|
%
|
In 2017, sales of specialty films were RMB108,089
(US$16,612) and 37.2% of our total revenues as compared to RMB96,091 and 37.8% in 2016, which was an increase of RMB11,998, or
12.5%, as compared to the same period in 2016. The increase was largely attributable to the increase in sales volumes for dry films
and coated films.
(14) Depreciation and Amortization
Depreciation of property, plant and equipment and amortization of
intangible asset is included in the following captions:
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
|
December 31, 2015
|
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
Cost of goods sold
|
|
|
16,981
|
|
|
|
2,610
|
|
|
|
16,354
|
|
|
|
25,139
|
|
Selling expenses
|
|
|
11
|
|
|
|
2
|
|
|
|
20
|
|
|
|
22
|
|
Administrative expenses
|
|
|
25,885
|
|
|
|
3,978
|
|
|
|
26,819
|
|
|
|
19,354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
42,877
|
|
|
|
6,590
|
|
|
|
43,193
|
|
|
|
44,515
|
|
(15) Freight Costs
The Group records freight costs related to
the transporting of the raw materials to the Group’s warehouse in cost of raw materials and all other outbound freight costs
in selling expenses. For the year ended December 31, 2017, 2016 and 2015, freight costs included in cost of goods sold were RMB4,495
(US$691), RMB3,406 and RMB2,938, respectively, and RMB8,527 (US$1,311), RMB8,177, and RMB7,713, respectively, were included in
selling expenses.
(16) Interest Expense
The Group capitalizes interest expense as a
component of the cost of construction in progress. The following is a summary of interest cost incurred during the year ended December
31, 2017, 2016 and 2015:
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
|
December 31, 2015
|
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
Interest cost capitalized
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Interest cost charged to expense
|
|
|
9,453
|
|
|
|
1,453
|
|
|
|
7,865
|
|
|
|
8,333
|
|
|
|
|
9,453
|
|
|
|
1,453
|
|
|
|
7,865
|
|
|
|
8,333
|
|
Interest expense in 2017 was higher than that
in 2016, which was mainly due to increased short-term loan.
(17) Income Taxes
Cayman Islands Tax
Under the current Cayman Island laws, the Company
is not subject to tax on income or capital gain. In addition, upon payments of dividends by the Company to its shareholders, no
Cayman Islands withholding tax is imposed.
PRC Tax
Shandong Fuwei, being a Hi-Tech Enterprise
in the Weifang Hi-Tech Industrial Zone in Shandong, the PRC, has been granted preferential tax treatments by the Tax Bureau of
the PRC. According to the PRC Income Tax Law and various approval documents issued by the Tax Bureau, Shandong Fuwei’s profit
was taxed at a rate of 15%. In 2014, Fuwei Films failed to be designated as a Hi-Tech Enterprise and it became subject to a standard
enterprise income tax at a rate of 25% in 2014 and 2015. In 2016, Shandong Fuwei was designated as a High-and-New Tech Enterprise
and as a result, it is entitled to preferential tax treatment at an EIT rate of 15% for the years ended December 31, 2016, 2017
and 2018.
If our subsidiary Shandong Fuwei was not entitled
to a reduced enterprise income tax, or EIT, rate of 15% for the year ended December 31, 2013, 2012 and 2011, it would have had
an EIT rate of 25%, net income and basic and diluted earnings per share would be reduced by the following amounts:
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
Net income
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2,499
|
)
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Basic
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.19
|
)
|
- Diluted
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(0.19
|
)
|
The Group had minimal operations in jurisdictions
other than the PRC. Net (loss) income before income taxes consists of:
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
Cayman Islands
|
|
|
(2,406
|
)
|
|
|
(370
|
)
|
|
|
(1,352
|
)
|
|
|
(2,379
|
)
|
British Virgin Islands
|
|
|
(5
|
)
|
|
|
(1
|
)
|
|
|
(5
|
)
|
|
|
(3
|
)
|
PRC
|
|
|
(42,784
|
)
|
|
|
(6,576
|
)
|
|
|
(47,796
|
)
|
|
|
(59,677
|
)
|
U.S.A
|
|
|
-
|
|
|
|
-
|
|
|
|
(13
|
)
|
|
|
(9
|
)
|
|
|
|
(45,195
|
)
|
|
|
(6,947
|
)
|
|
|
(49,166
|
)
|
|
|
(62,068
|
)
|
The Company has no material unrecognized tax benefit which would
favorably affect the income taxes in future periods and does not believe there will be any significant increases or decreases within
the next twelve months. No interest or penalties have been accrued at the date of adoption. As of December 31, 2017, we do not
have any accrued liability for uncertain tax positions.
Shandong Fuwei was designated as a High-and-New
Tech Enterprise in December 2008 and retained its status as a high-tech enterprise for three years commencing from 2011 enjoying
a favorable corporate tax rate during the term from January 1, 2011 to December 31, 2013 pursuant to the Enterprise Income Tax
Law. In 2014, Fuwei Films failed to be designated as High-and-New Tech Enterprise. In 2016, Shandong Fuwei was designated as High-and-new
Tech Enterprise. Accordingly, the deferred taxes as of December 31, 2017 have been calculated employing the statutory rate of Shandong
Fuwei of 15%.
Income tax benefit (expense) consists of:
|
|
Current
|
|
|
Deferred
|
|
|
Total
|
|
PRC Income tax
|
|
RMB
|
|
|
RMB
|
|
|
RMB
|
|
Year ended December 31, 2015
|
|
|
-
|
|
|
|
(7,000
|
)
|
|
|
(7,000
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2016
|
|
|
-
|
|
|
|
(5,317
|
)
|
|
|
(5,317
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2017
|
|
|
-
|
|
|
|
(808
|
)
|
|
|
(808
|
)
|
Year ended December 31, 2017 (US$)
|
|
|
-
|
|
|
|
(124
|
)
|
|
|
(124
|
)
|
Income tax expenses reported in the consolidated
statements of income differs from the income tax expense amount computed by applying the PRC income tax rate of 25%, 15%, 15% (the
statutory tax rate of the Company’s principal subsidiary) for the year ended December 31, 2017, 2016 and 2015 for the following
reasons:
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
Income (loss) before income taxes
|
|
|
(45,195
|
)
|
|
|
(6,947
|
)
|
|
|
(49,166
|
)
|
|
|
(62,068
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computed “expected” tax expense
|
|
|
(218
|
)
|
|
|
(34
|
)
|
|
|
(218
|
)
|
|
|
(218
|
)
|
Non-deductible expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Non-taxable income
|
|
|
131
|
|
|
|
20
|
|
|
|
131
|
|
|
|
218
|
|
Tax holiday
|
|
|
87
|
|
|
|
13
|
|
|
|
87
|
|
|
|
-
|
|
Tax effect of deferred tax and tax rates differential
|
|
|
(808
|
)
|
|
|
(124
|
)
|
|
|
(5,317
|
)
|
|
|
(7,000
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual income tax benefit (expense)
|
|
|
(808
|
)
|
|
|
(124
|
)
|
|
|
(5,317
|
)
|
|
|
(7,000
|
)
|
Tax effects of temporary differences that give
rise to significant portions of the deferred tax assets (liabilities) as of December 31, 2017 and 2016 are presented below.
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
Current
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
370
|
|
|
|
57
|
|
|
|
482
|
|
Other receivables
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Inventory impairment
|
|
|
918
|
|
|
|
141
|
|
|
|
717
|
|
Estimated Loss due to Product Warranty
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
1,288
|
|
|
|
198
|
|
|
|
1,199
|
|
Non-current
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, principally due to differences in depreciation
|
|
|
775
|
|
|
|
119
|
|
|
|
917
|
|
Construction in progress, principally due to capitalized interest
|
|
|
(2,432
|
)
|
|
|
(373
|
)
|
|
|
(2,656
|
)
|
Lease prepayments, principally due to differences in charges
|
|
|
(331
|
)
|
|
|
(51
|
)
|
|
|
(341
|
)
|
Allowance for advanced to supplier-long term
|
|
|
16
|
|
|
|
2
|
|
|
|
16
|
|
Net loss carryforward
|
|
|
6,110
|
|
|
|
939
|
|
|
|
7,099
|
|
|
|
|
4,138
|
|
|
|
636
|
|
|
|
5,035
|
|
Net deferred income tax assets
|
|
|
5,426
|
|
|
|
834
|
|
|
|
6,234
|
|
In assessing the realizability of deferred
tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not
be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the
periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities,
projected future taxable income, and tax planning strategies in making this assessment. Considering the level of historical performance
of Shandong Fuwei, we only recognized deferred tax assets for the loss of 2017 after considering the possibility of realizing the
benefits under the conservatism principle.
(18) Related Party Transactions
Name of party
|
|
Relationship
|
|
|
|
Hongkong Ruishang International Trade Co., Ltd. (the “Hongkong Ruishang”)
|
|
Shareholder of the Company
(52.9%
)
|
Shandong Fuhua Investment Company Limited.
(“Shandong Fuhua”)
|
|
Shareholder of the Company
(
12.54%
)
|
Hongkong Ruishang International Trade Co., Ltd. (the “Hongkong Ruishang”)
|
|
Subsidiary of Shandong SNTON Group Co., Ltd.(“SNTON Group”)
|
Shandong SNTON Optical Materials Technology Co., Ltd.( “Shandong SNTON”)
|
|
Subsidiary of Shandong SNTON Group Co., Ltd.(“SNTON Group”)
|
Due to related parties
In April 2014, we obtained a loan for a total
amount of RMB105,000 from Shandong SNTON Optical Materials Technology Co., Ltd. (the “Shandong SNTON”) to pay off certain
short-term loans due to Bank of Communications Co., Ltd. The interest shall be calculated at the benchmark rate, plus an additional
20% of the said benchmark rate, for the loan of the same term announced by the People’s Bank of China. The interest must
be paid quarterly and settled in full at the end of the year. As of December 31, 2014, the principal of this loan and the interest
have not been paid. In March 2015, the Company entered into a supplemental agreement with Shandong SNTON pursuant to which the
parties agreed that the Company will pay off the principal of this loan plus interest upon availability of new loans from banks
or other financial institutions.
As of December 31, 2017, the principal of this
loan from Shandong SNTON was RMB104,708 and the interest was RMB22,930. The interest expense of the loans from Shandong SNTON for
the year ended 2017, 2016 and 2015 are RMB22,930, RMB17,373 and RMB11,800, respectively.
As of December 31, 2017, the principal of this
loan from Shandong SNTON was RMB104,708 and the interest was RMB22,930.
In November 2017, SNTON Group provided us with
a loan for the amount of RMB20,000.
As of December 31, 2017, the total principal of loan from SNTON
Group was RMB20,000 and the interest payable was zero.
The interest expenses of the loans from SNTON Group for the year
ended 2017, 2016 and 2015 are zero, zero and RMB1,572, respectively.
In 2017, we did not purchase any raw materials
or final products from SNTON Group.
In 2016, we did not purchase any raw materials
or final products from SNTON Group.
In 2015, we purchased 75.6 Metric Tons of raw
materials from SNTON Group for a total amount of RMB414.
In 2017, we purchased 823.76 Metric Tons of
final products of BOPET from Shandong SNTON for a total amount of RMB8,397.
In 2016, we purchased 1.05 Metric Tons of raw
materials from Shandong SNTON for a total amount of RMB5 and 566 Metric Tons of final products of BOPET for a total amount of RMB4,867.
In 2015, we purchased 1,740 Metric Tons
of raw materials from Shandong SNTON for a total amount of RMB9,116 and 780 Metric Tons of final products of BOPET for a
total amount of RMB7,041.
The related accounts payable as of December
31, 2017 and 2016 was RMB151,074 and RMB131,747, respectively.
(19) Pension Plan
Pursuant to the relevant PRC regulations, the
Group is required to make contributions at a rate of 20% of employees’ salaries and wages to a defined contribution retirement
scheme organized by the local Social Bureau in respect of the retirement benefits for the Group’s employees in the PRC. The
total amount of contributions of RMB1,498 (US$230), RMB1,384 and RMB1,238 for the year ended December 31, 2017, 2016 and 2015 respectively,
was charged to administrative expenses in the accompanying consolidated statements of income. The Group has no other obligation
to make payments in respect of retirement benefits of the employees.
(20) Fair Value of Financial Instruments
Our accounting for Fair Value Measurement and
Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit
price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants
on the measurement date. This topic also establishes a fair value hierarchy which requires classification based on observable and
unobservable inputs when measuring fair value. The fair value hierarchy distinguishes between assumptions based on market data
(observable inputs) and an entity’s own assumptions (unobservable inputs). The hierarchy consists of three levels:
Level one — Quoted market prices in active
markets for identical assets or liabilities;
Level two — Inputs other than level one
inputs that are either directly or indirectly observable; and
Level three — Unobservable inputs developed
using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant
would use.
Determining which category an asset or liability
falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter. The measurement
basis used in the preparation of the consolidated financial statements is the historical cost basis except that the following assets
and liabilities are stated at their fair value, such as derivative financial instruments and available-for-sale equity securities.
The Company had no assets and liabilities measured at fair value on December 31, 2017.
The carrying amount of cash and cash equivalents,
trade accounts receivable, prepayments and other receivables, amounts due from related parties, amounts due to related parties,
and accrued liabilities and other payables, approximate their fair values because of the short maturity of these instruments.
The carrying amount of bank loans approximate
the fair value based on the borrowing rates currently available for bank loans with similar terms and maturity.
(21) Business and Credit Concentrations
(a) Almost all of the Group’s customers
are located in the PRC. There is no individual customer with gross revenue more than 10% of total gross revenue during the year
ended December 31, 2017, 2016 and 2015.
Each amount due from the following customers represented
more than 10% of the outstanding accounts receivable on December 31, 2017 and 2016.
|
|
Percentage
of accounts receivable outstanding (%)
December 31, 2017
|
|
Yunnan Dexin Zhiye Co., Ltd.
|
|
|
19.8
|
%
|
Zhuhai City Nengdong Technology Optical Materials Co., Ltd.
|
|
|
16.9
|
%
|
Eternal Photo Electronic Materials (Guangzhou) Co., Ltd.
|
|
|
10.5
|
%
|
|
|
Percentage
of accounts receivable outstanding (%)
December 31, 2016
|
|
Zhuhai City Nengdong Technology Optical Materials Co., Ltd.
|
|
|
24.2
|
%
|
(b) The Group purchased a significant portion
of PET resin required for the production of BOPET film from Sinopec Yizheng Chemical Fibre Company Limited (“Sinopec Yizheng”)
and during the year ended December 31, 2017, 2016 and 2015. The Group believes that there are a limited number of suppliers in
the PRC with the ability to consistently supply PET resin that meets the Group’s quality standards and requirements. Currently,
the Group has annual supply agreements with Sinopec Yizheng and pursuant to which Sinopec Yizheng and have agreed to supply fixed
quantities of PET resin to the Group on a monthly basis at the prevailing market prices. The terms of such supply agreement are
reviewed annually. Although the Group believes that it maintains a good relationship with its major suppliers, there can be no
assurance that Sinopec Yizheng and will continue to sell to the Group under normal commercial terms as and when needed.
The following are the vendors that supplied 10% or more of our raw
materials for each of the year ended December 31, 2017, 2016 and 2015:
|
|
|
|
Percentage of total purchases (%)
|
|
Supplier
|
|
Item
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
Sinopec Yizheng Chemical Fibre Company Limited
|
|
PET resin and Additives
|
|
|
40.5
|
%
|
|
|
60.3
|
%
|
|
|
52.0
|
%
|
PetroChina Co Ltd East China chemical sales branch
|
|
PET resin and Additives
|
|
|
28.6
|
%
|
|
|
4.9
|
%
|
|
|
0.0
|
%
|
Weifang Power Supply Company.
|
|
Electric power
|
|
|
10.3
|
%
|
|
|
12.3
|
%
|
|
|
12.8
|
%
|
The balance of advance to supplier to Sinopec Yizheng was RMB952
(US$146) as of December 31, 2017.
The balance of advance to supplier to Sinopec
Yizheng was RMB2,692 (US$414) as of December 31, 2016.
(c) Financial instruments that potentially
subject the Company to concentrations of credit risk are cash and cash equivalents, accounts receivable and other receivables arising
from its normal business activities. The Company places its cash and cash equivalents in what it believes to be credit-worthy financial
institutions. The Company maintains large sums of cash in two major banks in China. The aggregate balance in such accounts as of
December 31, 2017 was RMB9,809 (US $1,508). There is no insurance securing these deposits in China. The Company has a diversified
customer base, most of which are in China.
(22) Commitments and Contingencies
(a) Operating lease commitments
Future minimum lease payments under non-cancelable
operating leases as of December 31, 2017 are as follows:
|
|
December 31, 2017
|
|
|
|
RMB
|
|
|
US$
|
|
Operating lease commitments
|
|
|
143
|
|
|
|
22
|
|
The Company leases warehouses, staff quarters
and offices under operating leases. The leases duration is typically for one to three years, with an option to renew. None of the
leases includes contingent rentals.
For the year ended December 31, 2017, 2016
and 2015, total rental expenses for non-cancelable operating leases were RMB160 (US$25), RMB291 and RMB206, respectively.
(b) Capital commitments
Capital commitments for purchase of property,
plant and equipment as of December 31, 2017 were RMB213 (US$33).
(c) Outstanding bills receivable discounted
As of December 31, 2017, the Company had not
retained any recourse obligation in respect of bills receivable discounted with and sold to banks.
(d) Legal Proceedings
From time to time, we may be subject to legal
actions and other claims arising in the ordinary course of business. Shandong Fuwei is currently a party to one legal proceeding
in China.
On July 9, 2012, a client filed a lawsuit in
Beijing Daxing District People’s Court against Shandong Fuwei claiming RMB953 plus interest over disputes arising from a
Procurement Contract between the parties. Shandong Fuwei raised a jurisdictional objection upon filing its plea, and Beijing Daxing
District People’s Court overruled the objection. Shandong Fuwei filed an appeal against the judgment in the First Intermediate
People’s Court of Beijing. The appeal was dismissed on January 23, 2013. On May 15, 2013, Beijing Daxing District People’s
Court heard the case and adjourned the hearing due to the fact that plaintiff failed to provide sufficient evidence. On June 25,
2013, the case was heard in Beijing Daxing District People’s Court again and it was further adjourned due to plaintiff’s
failure to provide sufficient evidence. The case was then scheduled to be heard on August 7, 2013. However, on the day prior to
re-scheduled hearing, Shandong Fuwei was informed by Beijing Daxing District People’s Court that the hearing was adjourned
further for the same reason that plaintiff failed to provide sufficient evidence. On April 21, 2014, the case was heard, and the
plaintiff failed to provide sufficient evidence and the hearing was further adjourned. On May 28, 2014, the case was heard and
the plaintiff provided some evidence. On August 25, 2014, the case was heard again. On November 5, 2014, the court accepted the
withdrawal application from the plaintiff. On November 26, 2014, the plaintiff filed a second lawsuit in Beijing Daxing District
People’s Court against Shandong Fuwei over disputes arising from the Procurement Contract between the parties claiming RMB618
plus interest as a result of non- payment. The case was heard on January 26, 2015, where the two parties testified over the relevant
evidence. The case was heard on March 3, 2015, October 26, 2015 and May 11, 2016. To date, the case has not been decided.
(23) Earnings (Loss) Per Share
Basic and diluted earnings per share for the
period/year ended December 31, 2017, 2016 and 2015 have been calculated as follows:
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
Net (loss) income available to ordinary shareholders
|
|
|
(46,003
|
)
|
|
|
(7,071
|
)
|
|
|
(54,483
|
)
|
|
|
(69,065
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares outstanding
|
|
|
3,265,837
|
|
|
|
3,265,837
|
|
|
|
3,265,837
|
|
|
|
3,265,837
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dilutive effect of share options
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average number of ordinary shares outstanding
|
|
|
3,265,837
|
|
|
|
3,265,837
|
|
|
|
3,265,837
|
|
|
|
3,265,837
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted earnings (loss) per share
|
|
|
(14.09
|
)
|
|
|
(2.17
|
)
|
|
|
(16.68
|
)
|
|
|
(21.15
|
)
|
(24) Fuwei Films (Holdings) Co., Ltd (Parent Company)
Under PRC regulations, the Company’s
operating subsidiary, Shandong Fuwei may pay dividends only out of its accumulated profits, if any, determined in accordance with
the accounting standards and regulations prevailing in the PRC (“PRC GAAP”). In addition, Shandong Fuwei is required
to set aside at least 10% of its accumulated profits each year, if any, to fund the statutory general reserve until the balance
of the reserve reaches 50% of its registered capital. The statutory general reserve is not distributable in the form of cash dividends
to the Company and can be used to make up cumulative prior year losses, if any, and may be converted into share capital by the
issue of new shares to shareholders in proportion to their existing shareholdings, or by increasing the par value of the shares
currently held by them, provided that the reserve balance after such issue is not less than 25% of the registered capital. Further,
Shandong Fuwei is also required to allocate 5% of the profit after tax, determined in accordance with PRC GAAP, to the statutory
public welfare fund which is restricted to be used for capital expenditures for staff welfare facilities owned by the Company.
The statutory public welfare fund is not available for distribution to equity owners (except in liquidation) and may not be transferred
in the form of loans, advances, or cash dividends. As of December 31, 2017, an aggregate amount of RMB37,441 (US$5,755) has been
appropriated from retained earnings and set aside for statutory general reserve and public welfare fund, by Shandong Fuwei.
As of December 31, 2017, the amount of restricted
assets of Shandong Fuwei, which may not be transferred to the Company in the form of loans, advances or cash dividends by the subsidiaries
without the consent of a third party, was approximately 67.5% of the Company’s consolidated total assets as discussed above.
In addition, the current foreign exchange control policies applicable in the PRC also restrict the transfer of assets or dividends
outside the PRC.
The following presents condensed unaudited
unconsolidated financial information of the Parent Company only.
Condensed unaudited Balance Sheet as of December 31, 2017 and
2016
|
|
2017
|
|
|
2016
|
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
125
|
|
|
|
19
|
|
|
|
226
|
|
Other current assets
|
|
|
279,546
|
|
|
|
42,965
|
|
|
|
298,188
|
|
Investments in subsidiaries
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
279,671
|
|
|
|
42,984
|
|
|
|
298,414
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
67,388
|
|
|
|
10,357
|
|
|
|
67,626
|
|
Total shareholders’ equity
|
|
|
212,283
|
|
|
|
32,627
|
|
|
|
230,788
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity
|
|
|
279,671
|
|
|
|
42,984
|
|
|
|
298,414
|
|
Condensed unaudited Statements of Operations (For the years ended
December 31, 2017, 2016 and 2015)
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income (expenses)
|
|
|
(7
|
)
|
|
|
(1
|
)
|
|
|
(15
|
)
|
|
|
(12
|
)
|
General and administrative expenses
|
|
|
(2,399
|
)
|
|
|
(369
|
)
|
|
|
(2,662
|
)
|
|
|
(2,367
|
)
|
Other income
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Loss before equity in undistributed earnings of subsidiaries
|
|
|
(2,406
|
)
|
|
|
(370
|
)
|
|
|
(2,677
|
)
|
|
|
(2,379
|
)
|
Equity in earnings of subsidiaries
|
|
|
(43,597
|
)
|
|
|
(6,701
|
)
|
|
|
(51,806
|
)
|
|
|
(66,689
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
(46,003
|
)
|
|
|
(7,071
|
)
|
|
|
(54,483
|
)
|
|
|
(69,068
|
)
|
Condensed unaudited Statement of Cash Flows (For the year ended
December 31, 2017, 2016 and 2015)
|
|
2017
|
|
|
2016
|
|
|
2015
|
|
|
|
RMB
|
|
|
US$
|
|
|
RMB
|
|
|
RMB
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
(46,003
|
)
|
|
|
(7,071
|
)
|
|
|
(54,483
|
)
|
|
|
(69,068
|
)
|
Adjustment to reconcile net income (loss) to net cash from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Equity in earnings of subsidiaries
|
|
|
43,597
|
|
|
|
6,701
|
|
|
|
51,806
|
|
|
|
66,689
|
|
- Foreign exchange gain
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Other current assets
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
- Other current liabilities
|
|
|
(66
|
)
|
|
|
(10
|
)
|
|
|
142
|
|
|
|
34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
(2,472
|
)
|
|
|
(380
|
)
|
|
|
(2,535
|
)
|
|
|
(2,345
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments to related parties
|
|
|
4,762
|
|
|
|
732
|
|
|
|
2,750
|
|
|
|
2,249
|
|
Proceeds from related parties
|
|
|
(2,379
|
)
|
|
|
(366
|
)
|
|
|
(10
|
)
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
|
|
|
(12
|
)
|
|
|
(2
|
)
|
|
|
10
|
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities
|
|
|
2,371
|
|
|
|
364
|
|
|
|
2,750
|
|
|
|
2,249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash
|
|
|
(101
|
)
|
|
|
(16
|
)
|
|
|
215
|
|
|
|
(95
|
)
|
Cash:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At beginning of year
|
|
|
226
|
|
|
|
35
|
|
|
|
11
|
|
|
|
106
|
|
At end of year
|
|
|
125
|
|
|
|
19
|
|
|
|
226
|
|
|
|
11
|
|
(25) Unaudited Quarterly Data
Quarter
Ended
|
|
March 31
|
|
|
June 30
|
|
|
September 30
|
|
|
December 31
|
|
|
Total
|
|
Fiscal
year
2017
|
|
|
RMB
|
|
|
|
US$
|
|
|
|
RMB
|
|
|
|
US$
|
|
|
|
RMB
|
|
|
|
US$
|
|
|
|
RMB
|
|
|
|
US$
|
|
|
|
RMB
|
|
|
|
US$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
67,944
|
|
|
|
9,871
|
|
|
|
70,066
|
|
|
|
10,335
|
|
|
|
73,857
|
|
|
|
11,101
|
|
|
|
78,839
|
|
|
|
12,117
|
|
|
|
290,706
|
|
|
|
44,681
|
|
Gross loss
|
|
|
3,757
|
|
|
|
546
|
|
|
|
5,025
|
|
|
|
741
|
|
|
|
6,712
|
|
|
|
1,009
|
|
|
|
11,606
|
|
|
|
1,783
|
|
|
|
27,100
|
|
|
|
4,165
|
|
Net loss
|
|
|
(12,157
|
)
|
|
|
(1,765
|
)
|
|
|
(11,645
|
)
|
|
|
(1,718
|
)
|
|
|
(12,076
|
)
|
|
|
(1,814
|
)
|
|
|
(10,126
|
)
|
|
|
(1,557
|
)
|
|
|
(46,003
|
)
|
|
|
(7,071
|
)
|
Basic and diluted loss per share
|
|
|
(3.72
|
)
|
|
|
(0.54
|
)
|
|
|
(3.57
|
)
|
|
|
(0.53
|
)
|
|
|
(3.70
|
)
|
|
|
(0.56
|
)
|
|
|
(3.10
|
)
|
|
|
(0.48
|
)
|
|
|
(14.09
|
)
|
|
|
(2.17
|
)
|