-Teleconference to be held on Friday, August 24, 2018 at 9:00 am EDT-
BEIJING, Aug. 23, 2018 /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,
2018.
Second Quarter 2018 Financial Highlights
- Net sales during the second quarter ended June 30, 2018 increased to RMB79.6 million or US$12.0
million from RMB70.1 million
last year;
- Sales of specialty films were RMB30.7
million or US$4.6 million or
38.6% of our total revenues;
- Overseas sales were RMB16.6
million or US$2.5
million;
- Our gross profit grew to RMB6.8
million or US$1.0 million from
RMB5.0 million last year; gross
margin was 8.5% compared to 7.2% last year.
First Six Months 2018 Financial Highlights
- Net sales during the first six months ended June 30, 2018 were RMB156.5 million or US$23.7 million from RMB138.0 million last year;
- Sales of specialty films were RMB63.7
million or US$9.6 million or
40.7% of our total revenues;
- Overseas sales were RMB27.6
million or US$4.2
million;
- Our gross profit grew to RMB16.3
million or US$2.5 million from
RMB8.8 million last year; gross
margin was 8.5% compared to 6.4% last year.
Mr. Zengyong Wang, Chairman and CEO of Fuwei Films, commented,
"Our second quarter results reflect the intense competition as a
result of excess capacity in the BOPET industry. In spite of this,
I am pleased to share that our differentiated product strategy is
showing results and sales of specialty films continued to grow.
Riding on this positive momentum, we will work toward expanding our
customer base through introducing innovative products and exploring
overseas markets. We believe that capturing opportunities in new
and emerging markets will help strengthen our competitive
position."
Financial Results for the Three Months Ended June 30, 2018
Net sales during the second quarter were RMB79.6 million (US$12.0
million), compared to RMB70.1
million during the same period in 2017, representing an
increase of RMB9.5 million or 13.6%.
The increase of average sales price caused an increase of
RMB8.1 million and the sales volume
increase caused an increase of RMB1.4
million.
In the second quarter of 2018, sales of specialty films were
RMB30.7 million (US$4.6 million) or 38.6% of our total revenues as
compared to RMB25.6 million or 36.5%
in the same period of 2017, which was an increase of RMB5.1 million, or 19.9% as compared to the same
period in 2017. The increase of average sales price caused an
increase of RMB0.3 million and the
increase in the sales volume caused an increase of RMB4.8 million. The increase was largely
attributable to the increase in sales volume.
The following is a breakdown of commodity and specialty film
sales (amounts in thousands):
|
Three-Month
Period Ended
June 30, 2018
|
% of Total
|
|
Three-Month
Period Ended
June 30, 2017
|
% of Total
|
|
RMB
|
US$
|
|
|
RMB
|
|
Stamping and transfer
film
|
29,428
|
4,446
|
37.0%
|
|
26,378
|
37.7%
|
Printing
film
|
11,713
|
1,770
|
14.7%
|
|
5,289
|
7.5%
|
Metallization
film
|
622
|
94
|
0.8%
|
|
2,483
|
3.5%
|
Specialty
film
|
30,748
|
4,647
|
38.6%
|
|
25,568
|
36.5%
|
Base film for other
application
|
7,088
|
1,072
|
8.9%
|
|
10,347
|
14.8%
|
|
|
|
|
|
|
|
|
79,599
|
12,029
|
100.0%
|
|
70,066
|
100.0%
|
Overseas sales were RMB16.6
million or US$2.5 million, or
20.9% of total revenues, compared with RMB15.8 million or 22.5% of total revenues in the
second quarter of 2017. The increase of average sales price caused
an increase of RMB1.4 million and the
decrease in sales volume resulted in a decrease of RMB0.8 million.
The following is a breakdown of PRC domestic and overseas sales
(amounts in thousands):
|
|
Three-Month
Period Ended
June 30, 2018
|
% of Total
|
|
Three-Month
Period Ended
June 30, 2017
|
% of Total
|
|
|
RMB
|
US$
|
|
RMB
|
Sales in
China
|
|
62,994
|
9,520
|
79.1%
|
|
54,277
|
77.5%
|
Sales in other
countries
|
|
16,605
|
2,509
|
20.9%
|
|
15,789
|
22.5%
|
|
|
|
|
|
|
|
|
|
|
79,599
|
12,029
|
100.0%
|
|
70,066
|
100.0%
|
Our gross profit was RMB6.8
million (US$1.0 million) for
the second quarter, representing a gross profit rate of 8.5%, as
compared to a gross profit rate of 7.2% for the same period in
2017. Correspondingly, gross profit rate increased by 1.3
percentage point compared to the same period in 2017. Our average
product sales prices increased by 11.3% compared to the same period
last year while the average cost of goods sold increased by 9.7%
compared to the same period last year. Consequently, the amount of
increase in average cost of goods sold was lower than that in
average product sales prices during the second quarter ended
June 30, 2018 compared with the same
period in 2017, which resulted in an increase in our gross
profit.
Operating expenses for the second quarter were RMB13.3 million (US$2.0
million), compared to RMB14.2
million for the same period in 2017.
Net loss attributable to the Company during the second quarter
was RMB8.7 million (US$1.3 million) compared to net loss attributable
to the Company of RMB11.6 million
during the same period in 2017, representing a decrease of
RMB2.9 million for the same period in
2017.
Financial Results for the Six Months Ended June 30, 2018
Net sales during the first six months were RMB156.5 million (US$23.7
million), compared to RMB138.0
million in the same period in 2017, representing an increase
of RMB18.5 million or 13.4%. The
increase in average sales price caused an increase of RMB17.1 million and the increase in the sales
volume caused an increase of RMB1.4
million.
In the first six months, sales of specialty films were
RMB63.7 million (US$9.6 million) or 40.7% of our total revenues as
compared to RMB47.3 million or 34.3%
in the same period of 2017, which was an increase of RMB16.4 million, or 34.7% as compared to the same
period in 2017. The increase was mainly due to the increase of
sales volume.
The following is a breakdown of commodity and specialty film
sales (amounts in thousands):
|
Six-Month
Period Ended
June 30, 2018
|
% of Total
|
|
Six-Month
Period Ended
June 30, 2017
|
% of Total
|
|
RMB
|
US$
|
|
|
RMB
|
|
Stamping and transfer
film
|
60,281
|
9,110
|
38.6%
|
|
53,450
|
38.7%
|
Printing
film
|
17,581
|
2,657
|
11.2%
|
|
11,559
|
8.4%
|
Metallization
film
|
1,795
|
271
|
1.1%
|
|
5,101
|
3.7%
|
Specialty
film
|
63,695
|
9,626
|
40.7%
|
|
47,330
|
34.3%
|
Base film for other
application
|
13,174
|
1,991
|
8.4%
|
|
20,570
|
14.9%
|
|
|
|
|
|
|
|
|
156,526
|
23,655
|
100.0%
|
|
138,010
|
100.0%
|
Overseas sales during the first six months were RMB27.6 million or US$4.2
million, or 17.6% of total revenues, compared with
RMB29.0 million or 21.0% of total
revenues in the same period in 2017. This was RMB1.4 million lower than the same period in
2017. The decrease in sales volume resulted in a decrease of
RMB3.6 million and the increase in
average sales price caused an increase of RMB2.2 million.
The following is a breakdown of PRC domestic and overseas sales
(amounts in thousands):
|
|
Six-Month
Period Ended
June 30, 2018
|
% of Total
|
|
Six-Month
Period Ended
June 30, 2017
|
% of Total
|
|
|
RMB
|
US$
|
|
RMB
|
Sales in
China
|
|
128,922
|
19,483
|
82.4%
|
|
109,008
|
79.0%
|
Sales in other
countries
|
|
27,604
|
4,172
|
17.6%
|
|
29,002
|
21.0%
|
|
|
|
|
|
|
|
|
|
|
156,526
|
23,655
|
100.0%
|
|
138,010
|
100.0%
|
Our gross margin was RMB16.3
million (US$2.5 million) for
the first six months, representing a gross margin rate of 10.4%, as
compared to a gross margin rate of 6.4% for the same period in
2017. Correspondingly, gross margin rate increased by 4.0
percentage points. Our average product sales prices increased by
12.3% compared to the same period last year while the average cost
of goods sold increased by 7.4% compared to the same period last
year. Consequently, the amount of increase in average product sales
prices was higher than that in cost of goods sold during the six
months ended June 30, 2018 compared
with the same period in 2017, which resulted in an increase in our
gross margin.
Operating expenses for the first six months were RMB29.2 million (US$4.4
million), compared to RMB28.0
million in the same period in 2017, which was RMB1.2 million or 4.3% higher than the same
period in 2017. This increase was mainly due to increased expenses
on R&D.
Net loss attributable to the Company during the first six months
was RMB16.9 million (US$2.5 million) compared to net loss attributable
to the Company of RMB23.8 million
during the same period in 2017, representing a decrease of
RMB6.9 million from the same period
in 2017 due to the factors described above.
Cash, cash equivalent and restricted cash totaled RMB62.9 million or US$9.5
million as of June 30, 2018.
Total shareholders' equity was RMB202.1
million or US$30.5
million.
As of June 30, 2018, the Company
had 3,265,837 basic and diluted total ordinary shares
outstanding.
Conference Call Information
The Company will host a teleconference on Friday, August 24, 2018, 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 reply ID: 37084. The replay will be available until
September 24, 2018, at 09:00 a.m. EDT.
About Fuwei Films
Fuwei Films develops, manufactures and distributes high-quality
plastic films using the biaxial oriented stretch technique, also
known as BOPET film. 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 both the short and
long-term effects of the global financial crisis on the Company and
the BOPET film industry; 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.:
Mr. Shiwei Yin
Investor Relations
Grayling
Phone: +1-646-284-9474
Email: shiwei.yin@grayling.com
FUWEI FILMS
(HOLDINGS) CO., LTD. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
AS OF JUNE 30,
2018 AND DECEMBER 31, 2017
|
(amounts in thousands
except share and per share value)
|
(Unaudited)
|
|
|
|
June 30,
2018
|
|
December 31,
2017
|
|
RMB
|
US$
|
|
RMB
|
ASSETS
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
24,861
|
3,757
|
|
12,963
|
Restricted
cash
|
|
37,990
|
5,741
|
|
56,501
|
Accounts and bills
receivable, net
|
|
18,653
|
2,819
|
|
20,123
|
Inventories
|
|
17,560
|
2,654
|
|
24,578
|
Advance to
suppliers
|
|
5,254
|
794
|
|
3,898
|
Prepayments and other
receivables
|
|
1,294
|
196
|
|
1,404
|
Deferred tax assets -
current
|
|
1,277
|
193
|
|
1,288
|
Total current
assets
|
|
106,889
|
16,154
|
|
120,755
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
348,807
|
52,713
|
|
371,058
|
Construction in
progress
|
|
2,478
|
374
|
|
366
|
Lease prepayments,
net
|
|
16,563
|
2,503
|
|
16,830
|
Advance to suppliers
- long term, net
|
|
1,542
|
233
|
|
1,570
|
Deferred tax assets -
non current
|
|
6,831
|
1,032
|
|
6,901
|
|
|
|
|
|
|
Total
assets
|
|
483,110
|
73,009
|
|
517,480
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Short-term
borrowings
|
|
65,000
|
9,823
|
|
50,000
|
Due to related
parties
|
|
112,914
|
17,064
|
|
151,074
|
Accounts
payables
|
|
22,934
|
3,466
|
|
17,470
|
Notes
payable
|
|
67,980
|
10,273
|
|
67,900
|
Advance from
customers
|
|
3,258
|
492
|
|
1,976
|
|
6,292
|
951
|
|
5,268
|
Total current
liabilities
|
|
278,378
|
42,069
|
|
293,688
|
|
|
|
|
|
|
Deferred tax
liabilities
|
|
2,646
|
400
|
|
2,763
|
|
|
|
|
|
|
Total
liabilities
|
|
281,024
|
42,469
|
|
296,451
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Registered capital
(of US$0.519008 par value;
5,000,000 shares authorized; 3,265,837 issued
and outstanding)
|
|
13,323
|
2,013
|
|
13,323
|
Additional paid-in
capital
|
|
311,907
|
47,137
|
|
311,907
|
Statutory
reserve
|
|
37,441
|
5,658
|
|
37,441
|
Accumulated
deficit
|
|
(161,374)
|
(24,387)
|
|
(144,508)
|
Cumulative
translation adjustment
|
|
789
|
119
|
|
2,866
|
Total
shareholders' equity
|
|
202,086
|
30,540
|
|
221,029
|
Total
equity
|
|
202,086
|
30,540
|
|
221,029
|
Total liabilities
and equity
|
|
483,110
|
73,009
|
|
517,480
|
FUWEI FILMS
(HOLDINGS) CO., LTD. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
FOR THE THREE- AND
SIX-MONTH PERIODS ENDED JUNE 30, 2018 AND 2017
|
(amounts in thousands
except share and per share value)
|
(Unaudited)
|
|
|
|
The Three-Month
Period
Ended June 30,
|
|
The Six-Month
Period
Ended June 30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
RMB
|
US$
|
|
RMB
|
|
RMB
|
US$
|
|
RMB
|
Net sales
|
|
79,599
|
12,029
|
|
70,066
|
|
156,526
|
23,655
|
|
138,010
|
Cost of
sales
|
|
72,803
|
11,002
|
|
65,041
|
|
140,239
|
21,193
|
|
129,228
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
|
6,796
|
1,027
|
|
5,025
|
|
16,287
|
2,462
|
|
8,782
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
3,395
|
513
|
|
3,701
|
|
6,365
|
962
|
|
7,207
|
Administrative
expenses
|
|
9,916
|
1,499
|
|
10,486
|
|
22,792
|
3,444
|
|
20,752
|
Total operating
expenses
|
|
13,311
|
2,012
|
|
14,187
|
|
29,157
|
4,406
|
|
27,959
|
|
|
|
|
|
|
|
|
|
|
|
Operating
loss
|
|
(6,515)
|
(985)
|
|
(9,162)
|
|
(12,870)
|
(1,944)
|
|
(19,177)
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
- Interest
income
|
|
10
|
1
|
|
217
|
|
383
|
58
|
|
503
|
- Interest
expense
|
|
(2,257)
|
(341)
|
|
(2,407)
|
|
(4,458)
|
(674)
|
|
(4,853)
|
- Others income
(expense), net
|
|
282
|
43
|
|
(342)
|
|
45
|
7
|
|
(389)
|
Total other
expenses
|
|
(1,965)
|
(297)
|
|
(2,532)
|
|
(4,030)
|
(609)
|
|
(4,739)
|
|
|
|
|
|
|
|
|
|
|
|
Loss before provision
for income taxes
|
|
(8,480)
|
(1,282)
|
|
(11,694)
|
|
(16,900)
|
(2,553)
|
|
(23,916)
|
Income tax benefit
(expense)
|
|
(176)
|
(27)
|
|
49
|
|
34
|
5
|
|
114
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(8,656)
|
(1,309)
|
|
(11,645)
|
|
(16,866)
|
(2,548)
|
|
(23,802)
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to non-controlling interests
|
|
-
|
-
|
|
-
|
|
-
|
-
|
|
-
|
Net loss attributable
to the Company
|
|
(8,656)
|
(1,309)
|
|
(11,645)
|
|
(16,866)
|
(2,548)
|
|
(23,802)
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
|
- Foreign currency
translation adjustments attributable to
non-controlling interest
|
|
-
|
-
|
|
-
|
|
-
|
-
|
|
-
|
- Foreign currency
translation adjustments attributable to
the Company
|
|
(36)
|
(5)
|
|
(487)
|
|
(2,077)
|
(314)
|
|
(211)
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss
attributable to non-controlling interest
|
|
-
|
-
|
|
-
|
|
-
|
-
|
|
-
|
Comprehensive loss
attributable to the Company
|
|
(8,692)
|
(1,314)
|
|
(12,132)
|
|
(18,943)
|
(2,862)
|
|
(24,013)
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share,
Basic and diluted
|
|
(2.65)
|
(0.40)
|
|
(3.57)
|
|
(5.16)
|
(0.78)
|
|
(7.29)
|
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, 2018 AND 2017
|
(amounts in thousands
except share and per share value)
|
(Unaudited)
|
|
|
|
The Six-Month
Period Ended June 30,
|
|
|
2018
|
|
2017
|
|
|
RMB
|
US$
|
|
RMB
|
Cash flow from
operating activities
|
|
|
|
|
|
Net loss
|
|
(16,866)
|
(2,548)
|
|
(23,802)
|
Adjustments to
reconcile net loss to net cash
|
|
|
|
|
|
used in operating
activities
|
|
|
|
|
|
|
|
|
|
|
|
- Depreciation of
property, plant and equipment
|
|
22,127
|
3,344
|
|
21,728
|
- Amortization of
intangible assets
|
|
266
|
40
|
|
262
|
- Deferred income
taxes
|
|
(36)
|
(5)
|
|
(114)
|
- Bad debt
recovery
|
|
(70)
|
(11)
|
|
512
|
-Inventory
provision
|
|
-
|
-
|
|
(57)
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
- Accounts and bills
receivable
|
|
1,541
|
233
|
|
(98)
|
-
Inventories
|
|
7,019
|
1,061
|
|
303
|
- Advance to
suppliers
|
|
(1,356)
|
(205)
|
|
(30)
|
- Prepaid expenses and
other current assets
|
|
(65)
|
(10)
|
|
(1,104)
|
- Accounts
payable
|
|
5,463
|
825
|
|
(1,489)
|
- Accrued expenses and
other payables
|
|
(27)
|
(4)
|
|
288
|
- Advance from
customers
|
|
1,282
|
194
|
|
171
|
- Tax
payable
|
|
1,216
|
184
|
|
3,959
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
|
20,494
|
3,098
|
|
529
|
|
|
|
|
|
|
Cash flow from
investing activities
|
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
124
|
19
|
|
(447)
|
Restricted cash
related to trade finance
|
|
18,511
|
2,797
|
|
43,421
|
Advanced to suppliers
- non current
|
|
28
|
4
|
|
(257)
|
Amount change in
construction in progress
|
|
(2,112)
|
(319)
|
|
(2,157)
|
|
|
|
|
|
|
Net cash provided by
(used in) investing activities
|
|
16,551
|
2,501
|
|
40,560
|
|
|
|
|
|
|
Cash flow from
financing activities
|
|
|
|
|
|
Principal payments of
bank loans
|
|
-
|
-
|
|
(1,675)
|
Proceeds from
(payment to) short-term bank loans
|
|
15,000
|
2,267
|
|
(10,500)
|
Proceeds from
(payment to) related party
|
|
(38,160)
|
(5,767)
|
|
15,322
|
Change in notes
payable
|
|
80
|
12
|
|
(40,888)
|
|
|
|
|
|
|
Net cash (used in)
provided by financing activities
|
|
(23,080)
|
(3,488)
|
|
(37,741)
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes
|
|
(2,067)
|
(346)
|
|
(239)
|
|
|
|
|
|
|
Net increase in cash
and cash equivalent
|
|
11,898
|
1,765
|
|
3,109
|
|
|
|
|
|
|
Cash and cash
equivalent
|
|
|
|
|
|
At beginning of
period
|
|
12,963
|
1,992
|
|
13,343
|
At end of
period
|
|
24,861
|
3,757
|
|
16,452
|
|
|
|
|
|
|
SUPPLEMENTARY
DISCLOSURE:
|
|
|
|
|
|
Interest
paid
|
|
4,458
|
674
|
|
4,853
|
|
|
|
|
|
|
SUPPLEMENTARY
SCHEDULE OF NONCASH INVESTING AND FINANCIAL
ACTIVITIES:
|
Account payable for
plant and equipment:
|
|
1,008
|
152
|
|
1,398
|
View original
content:http://www.prnewswire.com/news-releases/fuwei-films-announces-second-quarter-and-first-half-2018-unaudited-financial-results-300701808.html
SOURCE Fuwei Films (Holdings) Co., Ltd.