BEIJING, May 21, 2015 /PRNewswire/ -- Fuwei Films
(Holdings) Co., Ltd. (Nasdaq: FFHL) ("Fuwei Films" or the
"Company"), a manufacturer and distributor of high-quality BOPET
plastic films in China, today
announced its unaudited financial results for the first quarter of
2015 ended March 31, 2015.
Highlights
- Net sales during the first quarter ended March 31, 2015 were RMB52.8million or US$8.5
million, compared to RMB70.7million, during the same period in 2014,
representing a decrease of RMB17.9
million or 25.3%.
- Net loss attributable to the Company during the first quarter
ended March 31, 2015 was RMB15.0 million or US$2.4
million compared to net loss attributable to the Company of
RMB13.3 million during the same
period in 2014, representing an increase of RMB1.7 million.
- Basic and diluted net loss per share was RMB1.15 or US$0.19
and RMB1.02 for the three-month
period ended March 31, 2015and 2014,
respectively.
- Net cash used in operating activities for the three months
ended March 31, 2015 was RMB7.7 million or US$1.2
million compared to net cash used in operating activities of
RMB2.5 million for the three months
ended March 31, 2014. This increase
in net cash flows used in operating activities was primarily
attributable to the increase of loss.
Mr. Zengyong Wang, Chairman and CEO of Fuwei Films, commented,
"The first quarter financial results continued to reflect weakened
market conditions due to significant competition which caused
oversupply and excess capacity in the marketplace. However, we
continue to believe that our focus on innovation will enable the
Company to better approach the current down cycle while increasing
the ratio of high-valued films."
First Quarter 2015Results
Net sales during the first quarter ended March 31, 2015 were RMB52.8million or US$8.5
million, compared to RMB70.7million, during the same period in 2014,
representing a decrease of RMB17.9
million or 25.3%, mainly due to the reduction of average
sales price and sales volume arising from stronger competition in
China and a reduction in the
prices of raw materials. The decrease of output caused by the
repair of the production lines from February
2015 to March 2015 also
contributed to the reduction of sales volume.
Overseas sales were RMB13.1
million or US$2.1 million, or
24.8% of total revenues, compared with RMB10.5 million or 14.8% of total revenues in the
first quarter of 2014, representing anincrease of RMB2.6 million or 24.8%. The reduction of average
sales price caused a decrease of RMB3.1
million and the increase in sales volume resulted in an
increase of RMB5.7 million.The
increase in overseas sales was mainly due to the increase of sales
volume.
The following is a breakdown of PRC domestic and overseas sales
(amounts in thousands except percentages):
|
|
Three-Month
Period Ended
March 31, 2014
|
% of Total
|
Three-Month
Period Ended
March 31, 2014
|
% of Total
|
|
|
RMB
|
US$
|
RMB
|
Sales in
China
|
|
39,696
|
6,404
|
75.2%
|
60,238
|
85.2%
|
Sales in other
countries
|
|
13,080
|
2,110
|
24.8%
|
10,467
|
14.8%
|
|
|
|
|
|
|
|
|
|
52,776
|
8,514
|
100.0%
|
70,705
|
100.0%
|
Our gross loss was RMB7.8 million
or US$1.3 million for the first
quarter ended March 31, 2015,
representing a gross loss margin of 14.8%, as compared to a gross
loss margin of 0.1% for the same period in 2014. Our average
product sales prices decreased by 19.5% compared to the same period
in 2014 while the average cost of goods sold decreased by 7.7%
compared to the same period last year. Consequently, the decrease
in average product sales prices was significantly higher than that
in the average cost of goods sold during the first quarter ended
March 31, 2015, which contributed to
the increase in gross loss margin compared with the same period in
2014.
Operating expenses for the first quarter ended March 31, 2015 were RMB8.8
million or US$1.4 million,
which was RMB1.6 million, or 15.4%
lower than the same period in 2014. This decrease was mainly due to
decreased general and administration expenses in the first quarter
of 2015.
Net loss attributable to the Company during the first quarter
ended March 31, 2015 was RMB15.0 million or US$2.4
million compared to net loss attributable to the Company of
RMB13.3 million during the same
period in 2014, representing an increase of RMB1.7 million.
Basic and diluted net loss per share was RMB1.15 or US$0.19
and RMB1.02 for the three-month
period ended March 31, 2015and 2014,
respectively.
Total shareholders' equity was RMB373.9
million or US$60.3 million as
of March 31, 2015, compared with
RMB388.9million as of December 31, 2014.
As of March 31, 2015, the Company
had 13,062,500 basic and diluted ordinary shares outstanding.
Conference Call Information
The Company will host a teleconference on Friday, May 22, 2015, 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 +1-877-660-6853 in North
America, or +1-201-612-7415 internationally, and entering
the following Conference ID: 13609782. The replay will be available
until June 22, 2015, at 11:59 p.m. EDT.
About Fuwei Films
Fuwei Films conducts its business through its wholly owned
subsidiary, Fuwei Films (Shandong)
Co., Ltd. ("Fuwei Shandong"). Fuwei Shandong develops, manufactures
and distributes high-quality plastic films using the biaxial
oriented stretch technique, otherwise known as BOPET film
(biaxially oriented polyethylene terephthalate). Fuwei'sBOPET film
is widely used to package food, medicine, cosmetics, tobacco, and
alcohol, as well as in the imaging, electronics, and magnetic
products industries.
Safe Harbor
This press release contains information that constitutes
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995
and are subject to risks. Risk factors that could contribute to
such differences include those matters more fully disclosed in the
Company's reports filed with the U.S. Securities and Exchange
Commission which, among other things, include; significant
competition in the BOPET film industry, especially the significant
oversupply of BOPET films resulting from the rapid growth of the
Chinese BOPET industry capacity, changes in the international
market and trade barriers, especially the adverse impact of the
antidumping investigation and imposition of an anti-dumping duty on
imports of the BOPET films originating from the People's Republic of China ("China") conducted by certain main importing
countries; fluctuations of RMB exchange rate, the reduce in demand
for the Company's products or the loss of main customers which may
result in the decrease of sales, and negatively influencing the
Company's financial performance, uncertainty as to the future
profitability, uncertainty as to the Company's ability to
successfully obtain additional funds to meet the working capital
needs of the new BOPET production line, uncertainty as to the
Company's ability to continuously develop new BOPET film products
to be produced by the third production line and keep up with
changes in BOPET film technology, risks associated with possible
defects and errors in its products including complaints and claims
from clients, uncertainty as to its ability to protect and enforce
its intellectual property rights, uncertainty as to its ability to
attract and retain qualified executives and personnel, and
uncertainty in acquiring raw materials on time and on acceptable
terms, particularly in light of the volatility in the prices of
petroleum products in recent years, instability of power and energy
supply, and the uncertainty regarding the future operation of the
Company in connection with the changes in the labor law in
China, the measures taken by the
Chinese government to save energy and reduce emissions, and the
complaints from nearby residents and local government about the
noise caused by our production as well as the uncertainty of the
impact of major shareholder transfer that have substantial
influence over the Company and the Company's business operation
including possible overlap of our BOPET products, customers and
market orientation with an BOPET film manufacturer, which is
controlled by the same individual who has control over the shares
of our major shareholder. The forward-looking information provided
herein represents the Company's estimates as of the date of the
press release, and subsequent events and developments may cause the
Company's estimates to change. The Company specifically disclaims
any obligation to update the forward-looking information in the
future. Therefore, this forward-looking information should not be
relied upon as representing the Company's estimates of its future
financial performance as of any date subsequent to the date of this
press release. Actual results of our operations may differ
materially from information contained in the forward-looking
statements as a result of the risk factors.
For more information, please contact:
In China:
Ms. Xiaoli Yu
Investor Relations Manager
Phone: +86-133-615-59266
Email: fuweiIR@fuweifilms.com
In the U.S.:
Vivian Chen
Investor Relations
Grayling
Phone: +1-646-284-9427
Email: vivian.chen@grayling.com
Financial Tables to Follow
FUWEI FILMS
(HOLDINGS) CO., LTD. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31,
2015 AND DECEMBER 31, 2014
|
(amounts in thousands
except share and per share value)
(Unaudited)
|
|
|
|
March 31,
2015
|
|
December 31,
2014
|
|
RMB
|
US$
|
|
RMB
|
ASSETS
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
6,499
|
1,048
|
|
9,020
|
Restricted
cash
|
|
31,001
|
5,001
|
|
48,085
|
Accounts and bills
receivable, net
|
|
7,244
|
1,169
|
|
9,867
|
Inventories
|
|
26,671
|
4,302
|
|
24,034
|
Advance to
suppliers
|
|
3,467
|
559
|
|
7,512
|
Prepayments and other
receivables
|
|
20,846
|
3,363
|
|
18,772
|
Deferred tax
assets - current
|
|
1,756
|
283
|
|
2,794
|
Total current
assets
|
|
97,484
|
15,725
|
|
120,084
|
|
|
|
|
|
|
Plant, properties and
equipment, net
|
|
470,619
|
75,919
|
|
482,534
|
Construction in
progress
|
|
1,046
|
169
|
|
366
|
Lease prepayments,
net
|
|
18,274
|
2,948
|
|
18,406
|
Advance to suppliers
- long term, net
|
|
636
|
103
|
|
722
|
Long-term
deposit
|
|
-
|
-
|
|
16,760
|
Other
Assets
|
|
12,277
|
1,980
|
|
12,500
|
Deferred tax assets -
non current
|
|
21,473
|
3,464
|
|
21,573
|
|
|
|
|
|
|
Total
assets
|
|
621,809
|
100,308
|
|
672,945
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
Current
liabilities
|
|
|
|
|
|
Long-term loan,
current portion
|
|
3,350
|
540
|
|
3,350
|
Due to related
parties
|
|
129,932
|
20,960
|
|
125,938
|
Accounts
payables
|
|
24,521
|
3,956
|
|
29,484
|
Notes
payable
|
|
61,380
|
9,902
|
|
95,539
|
Advance from
customers
|
|
3,523
|
568
|
|
3,392
|
Accrued expenses and
other payables
|
7,244
|
1,169
|
|
6,095
|
Obligations under
capital leases-current
|
|
6,397
|
1,032
|
|
8,259
|
Total current
liabilities
|
|
236,347
|
38,127
|
|
272,057
|
|
|
|
|
|
|
Obligations under
capital leases
|
|
-
|
-
|
|
303
|
Long-term
loan
|
|
6,650
|
1,073
|
|
6,650
|
Deferred tax
liabilities
|
|
5,714
|
922
|
|
5,816
|
|
|
|
|
|
|
Total
liabilities
|
|
248,711
|
40,122
|
|
284,826
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Registered capital(of
US$0.129752 par value;
20,000,000 shares authorized; 13,062,500 issued and
outstanding)
|
|
13,323
|
2,149
|
|
13,323
|
Additional paid-in
capital
|
|
311,907
|
50,316
|
|
311,907
|
Statutory
reserve
|
|
37,441
|
6,040
|
|
37,441
|
Retained
earnings
|
|
10,046
|
1,621
|
|
25,043
|
Cumulative
translation adjustment
|
|
1,175
|
188
|
|
1,199
|
Total
shareholders' equity
|
|
373,892
|
60,314
|
|
388,913
|
Non-controlling
interest
|
|
(794)
|
(128)
|
|
(794)
|
Total
equity
|
|
373,098
|
60,186
|
|
388,119
|
Total liabilities
and equity
|
|
621,809
|
100,308
|
|
672,945
|
FUWEI FILMS
(HOLDINGS) CO., LTD. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
FOR THE
THREE-MONTH PERIOD ENDED MARCH 31, 2015 AND 2014
|
(amounts in thousands
except share and per share value)
(Unaudited)
|
|
|
|
|
|
The Three-Month
Period Ended March 31,
|
|
|
2015
|
|
2014
|
|
RMB
|
US$
|
|
RMB
|
Net sales
|
|
52,776
|
8,514
|
|
70,705
|
Cost of
sales
|
|
60,601
|
9,776
|
|
70,774
|
|
|
|
|
|
|
Gross loss
|
|
(7,825)
|
(1,262)
|
|
(69)
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
Selling
expenses
|
|
3,196
|
516
|
|
3,359
|
Administrative
expenses
|
|
5,613
|
905
|
|
7,054
|
Total operating
expenses
|
|
8,809
|
1,421
|
|
10,413
|
|
|
|
|
|
|
Operating
loss
|
|
(16,634)
|
(2,683)
|
|
(10,482)
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
- Interest
income
|
|
520
|
84
|
|
380
|
- Interest
expense
|
|
(2,331)
|
(376)
|
|
(3,168)
|
- Others (expense)
income, net
|
|
4,484
|
723
|
|
(88)
|
|
|
|
|
|
|
Total other income
(expense)
|
|
2,673
|
431
|
|
(2,876)
|
|
|
|
|
|
|
Loss before provision
for income taxes
|
|
(13,961)
|
(2,252)
|
|
(13,358)
|
|
|
|
|
|
|
Income tax
benefit(expense)
|
|
(1,036)
|
(167)
|
|
99
|
|
|
|
|
|
|
Net
loss
|
|
(14,997)
|
(2,419)
|
|
(13,259)
|
|
|
|
|
|
|
Net loss attributable
to non-controlling interests
|
|
-
|
-
|
|
-
|
Net loss attributable
to the Company
|
|
(14,997)
|
(2,419)
|
|
(13,259)
|
|
|
|
|
|
|
Other comprehensive
income
|
|
|
|
|
|
- Foreign currency
translation adjustments attributable to
non-controlling interest
|
|
-
|
-
|
|
(20)
|
- Foreign currency
translation adjustments attributable to
the Company
|
|
(24)
|
(4)
|
|
(48)
|
|
|
|
|
|
|
Comprehensivelossattributable to non-controlling
interest
|
|
-
|
-
|
|
(20)
|
Comprehensive
lossattributable to the Company
|
|
(15,021)
|
(2,423)
|
|
(13,307)
|
|
|
|
|
|
|
Loss per share,
Basic and diluted
|
|
(1.15)
|
(0.19)
|
|
(1.02)
|
Weighted average
number ordinary shares,
Basic and diluted
|
|
13,062,500
|
13,062,500
|
|
13,062,500
|
FUWEI FILMS
(HOLDINGS) CO., LTD. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE
THREE-MONTH PERIOD ENDED MARCH 31, 2015 AND 2014
|
(amounts in thousands
except share and per share value)
(Unaudited)
|
|
|
|
|
|
The Three-Month
Period Ended March 31,
|
|
|
2015
|
|
2014
|
|
|
RMB
|
US$
|
|
RMB
|
Cash flow from
operating activities
|
|
|
|
|
|
Net loss
|
|
(14,997)
|
(2,419)
|
|
(13,259)
|
Adjustments to
reconcile net loss to net cash
|
|
|
|
|
|
used in operating
activities
|
|
|
|
|
|
- Losson disposal of
property, plant and equipment
|
|
4
|
1
|
|
-
|
- Depreciation
of property, plant and equipment
|
|
11,888
|
1,918
|
|
12,069
|
- Amortization
of intangible assets
|
|
132
|
21
|
|
132
|
- Deferred
income taxes
|
|
1,036
|
167
|
|
(99)
|
- Bad debt
expense
|
|
(4,319)
|
(697)
|
|
477
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
- Accounts and
bills receivable
|
|
2,535
|
409
|
|
(1,072)
|
-
Inventories
|
|
(2,637)
|
(425)
|
|
(355)
|
- Advance to
suppliers
|
|
4,211
|
679
|
|
(10)
|
- Prepaid
expenses and other current assets
|
|
(377)
|
(61)
|
|
(264)
|
- Accounts
payable
|
|
(4,962)
|
(800)
|
|
(82)
|
- Accrued
expenses and other payables
|
|
1,155
|
186
|
|
(219)
|
- Advance from
customers
|
|
132
|
21
|
|
(1,443)
|
- Tax
payable
|
|
(1,475)
|
(238)
|
|
1,639
|
|
|
|
|
|
|
Net cash used in
operating activities
|
|
(7,674)
|
(1,238)
|
|
(2,486)
|
|
|
|
|
|
|
Cash flow from
investing activities
|
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
22
|
4
|
|
(1,639)
|
Restricted cash
related to trade finance
|
|
17,084
|
2,756
|
|
1,992
|
Advanced to suppliers
- non current
|
|
86
|
14
|
|
(811)
|
Amount change in
construction in progress
|
|
(680)
|
(110)
|
|
265
|
Return of long-term
deposit
|
|
21,000
|
3,388
|
|
-
|
|
|
|
|
|
|
Net cash used
ininvesting activities
|
|
37,512
|
6,052
|
|
(193)
|
|
|
|
|
|
|
Cash flow from
financing activities
|
|
|
|
|
|
Proceeds from related
party
|
|
3,993
|
644
|
|
-
|
Payment of capital
lease obligation
|
|
(2,165)
|
(349)
|
|
(2,028)
|
Change in notes
payable
|
|
(34,159)
|
(5,510)
|
|
(3,985)
|
Net cash (used in)
provided by financing activities
|
|
(32,331)
|
(5,215)
|
|
(6,013)
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes
|
|
(28)
|
(464)
|
|
(9)
|
|
|
|
|
|
|
Net decrease in cash
and cash equivalent
|
|
(2,521)
|
(865)
|
|
(8,701)
|
|
|
|
|
|
|
Cash and cash
equivalent
|
|
|
|
|
|
At beginning of
period/year
|
|
9,020
|
1,913
|
|
11,578
|
At end of
period/year
|
|
6,499
|
1,048
|
|
2,877
|
|
|
|
|
|
|
SUPPLEMENTARY
DISCLOSURE:
|
|
|
|
|
|
Interest
paid
|
|
2,331
|
376
|
|
3,168
|
Income tax
paid
|
|
-
|
-
|
|
-
|
|
|
|
|
|
|
SUPPLEMENTARY
SCHEDULE OF NONCASH INVESTING AND FINANCIAL
ACTIVITIES:
|
Account payable for
plant and equipment:
|
|
2,266
|
366
|
|
8,275
|
Obligations for
acquired equipment under capital lease:
|
|
6,397
|
1,032
|
|
14,848
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/fuwei-films-announces-its-unaudited-financial-results-for-the-first-quarter-of-2015-300087121.html
SOURCE Fuwei Films (Holdings) Co., Ltd.