BEIJING, Aug. 22, 2019 /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,
2019.
Second Quarter 2019 Financial Highlights
- Net sales were RMB88.1 million
(US$12.8 million), 10.7% higher
compared to RMB79.6 million during
the same period in 2018.
- Sales of specialty films were RMB42.0
million (US$6.1 million) or
47.6% of our total revenues, 36.8% higher compared to RMB30.7 million in the same period of 2018.
- Overseas sales were RMB14.3
million (US$2.1 million), or
16.3% of total revenues.
- Our gross profit was RMB18.6
million (US$2.7 million),
173.5% higher compared to RMB6.8
million during the same period in 2018.
- Gross margin was 21.1%, compared to 8.5% during the same period
in 2018.
- Net profit attributable to the company was RMB1.0 million, compared to net loss of
RMB8.7 million during the same period
in 2018.
First Six Months 2019 Financial Highlights
- Net sales were RMB169.2 million
(US$24.6 million), 8.1% higher
compared to RMB156.5 million in the
same period in 2018.
- Sales of specialty films were RMB74.2
million (US$10.8 million) or
43.8% of our total revenues, 16.5% higher compared to RMB63.7 million or 40.7% in the same period of
2018.
- Overseas sales were RMB30.6
million (US$4.5 million), or
18.1% of total revenues.
- Gross profit was RMB31.0 million
(US$4.5 million), 90.2% higher
compared to RMB16.3 million during
the same period in 2018.
- Gross margin was 18.3%, higher than 10.4% for the same period
in 2018.
Mr. Zengyong Wang, Chairman and CEO of Fuwei Films, commented,
"We are pleased to return to profitability after years of hard work
and believe that the worst may be behind us. We believe the
turnaround was a result of our commitment to differentiated product
strategy and continuous R&D. Sales of specialty films continued
to increase and accounted for 47.6% of total sales during the
quarter compared to 38.6% last year. Meanwhile, we believe research
and development is helping us launch new products and expand the
end-user applications of our films. Looking ahead, the BOPET
industry remains competitive as a result of higher supply.
Nevertheless, we will continue to innovate, tackle overseas markets
and execute differentiated product strategy to improve performance
and capture opportunities."
Financial Results for the Three Months Ended June 30, 2019
Net sales during the second quarter ended June 30, 2019 were RMB88.1
million (US$12.8 million),
compared to RMB79.6 million during
the same period in 2018, representing an increase of RMB8.5 million or 10.7%. The increase of average
sales price caused an increase of RMB7.4
million and the sales volume increase caused an increase of
RMB1.1 million.
In the second quarter of 2019, sales of specialty films were
RMB42.0 million (US$6.1 million) or 47.6% of our total revenues as
compared to RMB30.7 million or 38.6%
in the same period of 2018, which was an increase of RMB11.3 million, or 36.8% as compared to the same
period in 2018. The increase of average sales price caused an
increase of RMB1.2 million and the
increase in the sales volume caused an increase of RMB10.1 million. The increase was largely
attributable to the increase in sales volume.
The following is a breakdown of commodity and specialty film
sales (amounts in thousands):
|
Three-Month
Period Ended
|
% of
|
Three-Month
Period Ended
|
% of
|
|
June 30,
2019
|
Total
|
June 30,
2018
|
Total
|
|
RMB
|
US$
|
|
RMB
|
|
Stamping and transfer
film
|
28,596
|
4,165
|
32.4%
|
29,428
|
37.0%
|
Printing
film
|
8,512
|
1,240
|
9.7%
|
11,713
|
14.7%
|
Metallization
film
|
1,938
|
282
|
2.2%
|
622
|
0.8%
|
Specialty
film
|
41,958
|
6,112
|
47.6%
|
30,748
|
38.6%
|
Base film for other
application
|
7,113
|
1,037
|
8.1%
|
7,088
|
8.9%
|
|
|
|
|
|
|
|
88,117
|
12,836
|
100.0%
|
79,599
|
100.0%
|
Overseas sales were RMB14.3
million or US$2.1 million, or
16.3% of total revenues, compared with RMB16.6 million or 20.9% of total revenues in the
second quarter of 2018. The increase of average sales price caused
an increase of RMB0.8 million and the
decrease in sales volume resulted in a decrease of RMB3.1 million.
The following is a breakdown of PRC domestic and overseas sales
(amounts in thousands):
|
Three-Month
Period Ended
|
% of
|
Three-Month
Period Ended
|
% of
|
|
June 30,
2019
|
Total
|
June 30,
2018
|
Total
|
|
RMB
|
US$
|
|
RMB
|
|
Sales in
China
|
73,777
|
10,747
|
83.7%
|
62,994
|
79.1%
|
Sales in other
countries
|
14,340
|
2,089
|
16.3%
|
16,605
|
20.9%
|
|
|
|
|
|
|
|
88,117
|
12,836
|
100.0%
|
79,599
|
100.0%
|
Our gross profit was RMB18.6
million (US$2.7 million) for
the second quarter ended June 30,
2019, representing a gross profit rate of 21.1%, as compared
to a gross profit rate of 8.5% for the same period in 2018.
Correspondingly, gross margin increased by 12.6 percentage point
compared to the same period in 2018. Our average product sales
prices increased by 9.1% compared to the same period last year
while the average cost of goods sold decreased by 5.9% compared to
the same period last year. Consequently, it resulted in an increase
in our gross profit.
Operating expenses for the second quarter ended June 30, 2019 were RMB15.0
million (US$2.2 million), as
compared to RMB13.3 million for the
same period in 2018.
Net profit attributable to the Company during the second quarter
ended June 30, 2019 was RMB1.0 million (US$0.1
million) while net loss attributable to the Company was
RMB8.7 million during the same period
in 2018.
Financial Results for the Six Months Ended June 30, 2019
Net sales during the six-month period ended June 30, 2019 were RMB169.2 million (US$24.6
million), compared to RMB156.5
million in the same period in 2018, representing an increase
of RMB12.7 million or 8.1%. The
increase in average sales price caused an increase of RMB10.4 million and the increase in the sales
volume caused an increase of RMB2.3
million.
In the six-month period ended June 30,
2019, sales of specialty films were RMB74.2 million (US$10.8
million) or 43.8% of our total revenues as compared to
RMB63.7 million or 40.7% in the same
period of 2018, which was an increase of RMB10.5 million, or 16.5% as compared to the same
period in 2018. The increase in average sales price caused an
increase of RMB3.4 million and the
increase in the sales volume caused an increase of RMB7.1 million.
The following is a breakdown of commodity and specialty film
sales (amounts in thousands):
|
Six-Month
Period Ended
|
% of
|
Six-Month
Period Ended
|
% of
|
|
June 30,
2019
|
Total
|
June 30,
2018
|
Total
|
|
RMB
|
US$
|
|
RMB
|
|
Stamping and transfer
film
|
60,123
|
8,757
|
35.6%
|
60,281
|
38.6%
|
Printing
film
|
20,732
|
3,020
|
12.3%
|
17,581
|
11.2%
|
Metallization
film
|
2,614
|
381
|
1.5%
|
1,795
|
1.1%
|
Specialty
film
|
74,154
|
10,802
|
43.8%
|
63,695
|
40.7%
|
Base film for other
application
|
11,568
|
1,685
|
6.8%
|
13,174
|
8.4%
|
|
|
|
|
|
|
|
169,191
|
24,645
|
100.0%
|
156,526
|
100.0%
|
Overseas sales during the six months ended June 30, 2019 were RMB30.6
million or US$4.5 million, or
18.1% of total revenues, compared with RMB27.6 million or 17.6% of total revenues in the
same period in 2018. This was RMB3.0
million higher than the same period in 2018. The increase in
sales volume resulted in an increase of RMB1.2 million and the increase in average sales
price caused an increase of RMB1.8
million.
The following is a breakdown of PRC domestic and overseas sales
(amounts in thousands):
|
Six-Month
Period Ended
|
% of
|
Six-Month
Period Ended
|
% of
|
|
June 30,
2019
|
Total
|
June 30,
2018
|
Total
|
|
RMB
|
US$
|
|
RMB
|
|
Sales in
China
|
138,631
|
20,193
|
81.9%
|
128,922
|
82.4%
|
Sales in other
countries
|
30,560
|
4,452
|
18.1%
|
27,604
|
17.6%
|
|
|
|
|
|
|
|
169,191
|
24,645
|
100.0%
|
156,526
|
100.0%
|
Our gross profit was RMB31.0
million (US$4.5 million) for
the first six months ended June 30,
2019, representing a gross margin rate of 18.3%, as compared
to a gross margin rate of 10.4% for the same period in 2018. Our
average product sales prices increased by 6.5% compared to the same
period last year while the average cost of goods sold decreased by
2.9% compared to the same period last year. Consequently, it
resulted in an increase in our gross margin.
Operating expenses for the six months ended June 30, 2019 were RMB28.5
million (US$4.2 million),
compared to RMB29.2 million in the
same period in 2018, which was RMB0.7
million or 2.4% lower than the same period in 2018. This
decrease was mainly due to decreased allowances.
Net loss attributable to the Company during the first half of
2019 was RMB2.4 million (US$0.4 million) compared to net loss attributable
to the Company of RMB16.9 million
during the same period in 2018, representing a decrease of
RMB14.5 million from the same period
in 2018 due to the factors described above.
Cash, cash equivalent and restricted cash totaled RMB73.4 million or US$10.7
million as of June 30, 2019.
Total shareholders' equity was RMB194.4
million or US$28.3
million.
As of June 30, 2019, 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 23, 2019, at 9:00 a.m. ET / 9:00
p.m. Beijing time to
discuss the financial results. To participate in the call, please
dial +1-844-369-8770 in North
America, or +1-862-298-0840 internationally, approximately
10 minutes prior to the scheduled start time.
A replay of the call can also be accessed via telephone by
calling +1-877-481-4010 in North
America, or +1-919-882-2331 internationally, and entering
the following Conference ID: 52444. The replay will be available
until September 23, 2019, at
9:00 a.m. ET.
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 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 uncertainty 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 countries;
uncertainty around U.S.-China
trade war and its effect on the Company's operation, fluctuations
of the RMB exchange rate, 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,
2019 AND DECEMBER 31, 2018
|
(amounts in thousands
except share and per share value)
|
(Unaudited)
|
|
|
|
|
|
|
June 30,
2019
|
|
December 31,
2018
|
|
RMB
|
US$
|
|
RMB
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
48,429
|
7,054
|
|
8,908
|
Restricted
cash
|
24,990
|
3,640
|
|
38,000
|
Accounts and bills
receivable, net
|
23,751
|
3,460
|
|
22,627
|
Inventories
|
24,273
|
3,536
|
|
24,675
|
Advance to
suppliers
|
4,900
|
714
|
|
5,694
|
Prepayments and other
receivables
|
1,184
|
172
|
|
1,068
|
Deferred tax assets -
current
|
1,168
|
170
|
|
1,195
|
Total current
assets
|
128,695
|
18,746
|
|
102,167
|
|
|
|
|
|
Property, plant and
equipment, net
|
310,850
|
45,280
|
|
331,168
|
Construction in
progress
|
283
|
41
|
|
366
|
Lease prepayments,
net
|
16,029
|
2,335
|
|
16,296
|
Advance to suppliers
- long term, net
|
1,542
|
225
|
|
1,542
|
Deferred tax assets -
non current
|
3,073
|
448
|
|
3,143
|
|
|
|
|
|
Total
assets
|
460,472
|
67,075
|
|
454,682
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Short-term
borrowings
|
64,950
|
9,461
|
|
64,950
|
Due to related
parties
|
116,988
|
17,041
|
|
114,692
|
Accounts
payables
|
22,441
|
3,269
|
|
20,750
|
Notes
payable
|
49,980
|
7,280
|
|
48,000
|
Advance from
customers
|
4,062
|
592
|
|
1,859
|
Accrued expenses and
other payables
|
5,179
|
754
|
|
5,072
|
Total current
liabilities
|
263,600
|
38,397
|
|
255,323
|
|
|
|
|
|
Deferred tax
liabilities
|
2,464
|
359
|
|
2,528
|
|
|
|
|
|
Total
liabilities
|
266,064
|
38,756
|
|
257,851
|
|
|
|
|
|
Equity
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
Registered capital
(of US$0.519008 par value; 5,000,000 shares authorized; 3,265,837
issued and outstanding)
|
13,323
|
1,941
|
|
13,323
|
Additional paid-in
capital
|
311,907
|
45,434
|
|
311,907
|
Statutory
reserve
|
37,441
|
5,454
|
|
37,441
|
Accumulated
deficit
|
(169,102)
|
(24,632)
|
|
(166,680)
|
Cumulative
translation adjustment
|
839
|
122
|
|
840
|
Total
shareholders' equity
|
194,408
|
28,319
|
|
196,831
|
Total
equity
|
194,408
|
28,319
|
|
196,831
|
Total liabilities
and equity
|
460,472
|
67,075
|
|
454,682
|
FUWEI FILMS
(HOLDINGS) CO., LTD. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
FOR THE THREE- AND
SIX-MONTH PERIODS ENDED JUNE 30, 2019 AND 2018
|
(amounts in thousands
except share and per share value)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
The Three-Month
Period
Ended June 30,
|
The Six-Month
Period
Ended June 30,
|
|
2019
|
2018
|
2019
|
2018
|
|
RMB
|
US$
|
RMB
|
RMB
|
US$
|
RMB
|
Net
sales
|
88,117
|
12,836
|
79,599
|
169,191
|
24,645
|
156,526
|
Cost of
sales
|
69,488
|
10,122
|
72,803
|
138,158
|
20,125
|
140,239
|
|
|
|
|
|
|
|
Gross
profit
|
18,629
|
2,714
|
6,796
|
31,033
|
4,520
|
16,287
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
Selling
expenses
|
3,537
|
515
|
3,395
|
6,501
|
947
|
6,365
|
Administrative
expenses
|
11,453
|
1,668
|
9,916
|
22,030
|
3,209
|
22,792
|
Total operating
expenses
|
14,990
|
2,183
|
13,311
|
28,531
|
4,156
|
29,157
|
|
|
|
|
|
|
|
Operating( loss)
income
|
3,639
|
531
|
(6,515)
|
2,502
|
364
|
(12,870)
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
- Interest
income
|
202
|
29
|
10
|
416
|
61
|
383
|
- Interest
expense
|
(2,244)
|
(327)
|
(2,257)
|
(4,435)
|
(646)
|
(4,458)
|
- Others income
(expense), net
|
(630)
|
(92)
|
282
|
(872)
|
(127)
|
45
|
Total other
expenses
|
(2,672)
|
(390)
|
(1,965)
|
(4,891)
|
(712)
|
(4,030)
|
|
|
|
|
|
|
|
Income(loss) before
provision for income taxes
|
967
|
141
|
(8,480)
|
(2,389)
|
(348)
|
(16,900)
|
Income tax benefit
(expense)
|
(16)
|
(2)
|
(176)
|
(33)
|
(5)
|
34
|
|
|
|
|
|
|
|
Net
(loss)income
|
951
|
139
|
(8,656)
|
(2,422)
|
(353)
|
(16,866)
|
|
|
|
|
|
|
|
Net (loss) income
attributable to non-controlling interests
|
-
|
-
|
-
|
-
|
-
|
-
|
Net income (loss)
attributable to the Company
|
951
|
139
|
(8,656)
|
(2,422)
|
(353)
|
(16,866)
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
- Foreign currency
translation adjustments attributable to non-controlling
interest
|
-
|
-
|
-
|
-
|
-
|
-
|
- Foreign currency
translation adjustments attributable to the Company
|
-
|
-
|
(36)
|
(1)
|
-
|
(2,077)
|
|
|
|
|
|
|
|
Comprehensive loss
attributable to non-controlling interest
|
-
|
-
|
-
|
-
|
-
|
-
|
Comprehensive
income(loss )attributable to the Company
|
951
|
139
|
(8,692)
|
(2,423)
|
(353)
|
(18,943)
|
|
|
|
|
|
|
|
Earnings (loss) per
share, Basic and diluted
|
0.29
|
0.04
|
(2.65)
|
(0.74)
|
(0.11)
|
(5.16)
|
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, 2019 AND 2018
|
(amounts in thousands
except share and per share value)
|
(Unaudited)
|
|
|
|
|
|
|
The Six-Month
Period Ended June 30,
|
|
2019
|
|
2018
|
|
RMB
|
US$
|
|
RMB
|
Cash flow from
operating activities
|
|
|
|
|
Net loss
|
(2,422)
|
(353)
|
|
(16,866)
|
Adjustments to
reconcile net loss to net cash
|
|
|
|
|
used in
operating activities
|
|
|
|
|
|
|
|
|
|
-
Depreciation of property, plant and equipment
|
23,892
|
3,480
|
|
22,127
|
-
Amortization of intangible assets
|
267
|
39
|
|
266
|
-
Deferred income taxes
|
33
|
5
|
|
(36)
|
-
Bad debt recovery
|
(903)
|
(132)
|
|
(70)
|
-Inventory provision
|
724
|
105
|
|
-
|
Changes in operating
assets and liabilities
|
|
|
|
|
-
Accounts and bills receivable
|
(222)
|
(32)
|
|
1,541
|
-
Inventories
|
(323)
|
(47)
|
|
7,019
|
-
Advance to suppliers
|
794
|
116
|
|
(1,356)
|
-
Prepaid expenses and other current assets
|
(116)
|
(17)
|
|
(65)
|
-
Accounts payable
|
1,692
|
247
|
|
5,463
|
-
Accrued expenses and other payables
|
319
|
46
|
|
(27)
|
-
Advance from customers
|
2,203
|
321
|
|
1,282
|
-
Tax payable
|
(212)
|
(31)
|
|
1,216
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
25,726
|
3,747
|
|
20,494
|
|
|
|
|
|
Cash flow from
investing activities
|
|
|
|
|
Purchases of
property, plant and equipment
|
(3,574)
|
(521)
|
|
124
|
Restricted cash
related to trade finance
|
-
|
-
|
|
-
|
Advanced to suppliers
- non current
|
-
|
-
|
|
28
|
Amount change in
construction in progress
|
83
|
12
|
|
(2,112)
|
|
|
|
|
|
Net cash provided by
(used in) investing activities
|
(3,491)
|
(509)
|
|
(1,960)
|
|
|
|
|
|
Cash flow from
financing activities
|
|
|
|
|
Principal payments of
bank loans
|
-
|
-
|
|
-
|
Proceeds from
(payment to) short-term bank loans
|
-
|
-
|
|
15,000
|
Proceeds from
(payment to) related party
|
2,296
|
335
|
|
(38,160)
|
Change in notes
payable
|
1,980
|
288
|
|
80
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in)
provided by financing activities
|
4,276
|
623
|
|
(23,080)
|
|
|
|
|
|
Effect of foreign
exchange rate changes
|
-
|
10
|
|
(2,067)
|
|
|
|
|
|
Net increase in cash
and cash equivalent
|
26,511
|
3,871
|
|
(6,613)
|
|
|
|
|
|
Cash and cash
equivalent
|
|
|
|
|
At beginning of
period
|
46,908
|
6,823
|
|
69,464
|
At end of
period
|
73,419
|
10,694
|
|
62,851
|
|
|
|
|
|
SUPPLEMENTARY
DISCLOSURE:
|
|
|
|
|
Interest
paid
|
4,435
|
646
|
|
4,458
|
|
|
|
|
|
SUPPLEMENTARY
SCHEDULE OF NONCASH INVESTING AND FINANCIAL
ACTIVITIES:
|
|
|
Account payable for
plant and equipment:
|
1,010
|
147
|
|
1,008
|
View original
content:http://www.prnewswire.com/news-releases/fuwei-films-announces-second-quarter-and-first-half-2019-unaudited-financial-results-300905393.html
SOURCE Fuwei Films (Holdings) Co., Ltd.