Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,501.65 -12.72 -0.08%
S&P 500 1,875.39 -4.16 -0.22%
NASDAQ 4,126.97 -34.49 -0.83%
Ticker Volume Price Price Delta
STOXX 50 3,175.97 -23.72 -0.74%
FTSE 100 6,674.74 -7.02 -0.11%
DAX 9,544.19 -55.90 -0.58%
Ticker Volume Price Price Delta
NIKKEI 14,545.29 -0.98 -0.01%
TOPIX 1,173.11 -0.70 -0.06%
HANG SENG 22,527.38 17.74 0.08%

Fuwei Films Announces Fourth Quarter and Full Year 2012 Financial Results



  Fuwei Films Announces Fourth Quarter and Full Year 2012 Financial Results

- Teleconference to be Held on Friday, April 12, 2013, at 9:00 a.m. EDT -

PR Newswire

BEIJING, April 11, 2013

BEIJING, April 11, 2013 /PRNewswire-FirstCall/ -- 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
financial results for the fourth quarter and full year ended December 31,
2012.

Fuwei Films 2012 Highlights

  o Net cash provided by operating activities was RMB46.5 million for the year
    ended December 31, 2012 as compared to net cash used in operating
    activities of RMB14.0 million for the year ended December 31, 2011. This
    increase in cash flows from operating activities was attributable
    primarily to the decrease in accounts receivables.
  o Operating expenses during the year ended December 31, 2012 were RMB60.9
    million, an increase of RMB6.1 million, or 11.2%, as compared to 2011.
    This was due to goodwill impairment for the year ended December 31, 2012.
  o Fuwei Films was selected as one of the outstanding brands of the plastic
    packaging industry in China in 2011 and 2012. This award was granted by
    the China Packaging Federation, one of the leading State-approved national
    industry federations committed to advocating the development of the
    packaging industry in China.
  o Fuwei Films' third production line to manufacture high-performance
    electric insulation film, base film for solar backsheet and TFT-LCD
    optical film with an annual design capacity of 23,000 metric tons and
    thickness between 38 and 250um was put into trial operation.

Mr. Xiaoan He, Chairman and CEO of Fuwei Films said, "Despite the challenges
in the marketplace, including increased competition and a significant
reduction in selling prices arising from excessive capacity, Fuwei Films
focused on innovation and completed the installation of its third production
line. We intend to develop our high value-added thick films to meet market
demands. We believe this is the key to our long term growth and prosperity."

Fourth Quarter 2012 Results

Revenues for the fourth quarter of 2012 were RMB100.7 million (US$16.2
million), compared with RMB109.2 million in the fourth quarter of 2011, a
decrease of RMB8.5 million, or 7.8%, mainly due to the decrease in selling
prices compared to the same period in 2011 arising from stronger competition
attributed to increased capacity in China and overseas.

Sales of specialty films for the fourth quarter of 2012 were RMB27.6 million
(US$4.4 million), or 27.4% of total revenues, compared with RMB32.1 million or
29.4% of total revenue in the fourth quarter of 2011. The decrease was mainly
attributable to decreased selling prices compared to those in 2011.

The following is a breakdown of commodity and specialty film sales for the
three-month periods ended December 31, 2012 and 2011 (amounts in thousands):

                               Three months period ended
                               December 31,2012            December
                                                % of Total 31,2011  % of Total
                               RMB      US$                RMB
Stamping and transfer film     54,434   8,737   54.1%      59,819   54.8%
Printing film                  8,621    1,384   8.6%       11,725   10.7%
Metallized film                4,520    726     4.5%       3,429    3.1%
Specialty film                 27,603   4,431   27.4%      32,076   29.4%
Base film for other            5,492    882     5.5%       2,164    2.0%
applications
Total                          100,670  16,159  100%       109,213  100%

Overseas sales for the fourth quarter of 2012 were RMB14.6 million (US$2.3
million), or 14.5% of total revenues, compared with RMB15.1 million or 13.8%
of total revenues in the fourth quarter of 2011. The reduction in overseas
sales was mainly due to stronger competition in the global market causing a
significant drop of overseas selling prices in the fourth quarter of 2012
compared with the same period last year.

The following is a breakdown of domestic versus overseas sales for the
three-month periods ended December 31, 2012 and 2011 (amounts in thousands):

                        Three-month period ended
                        December 31,2012            December
                                         % of Total 31,2011         % of Total
                        RMB      US$                RMB
Sales in China          86,070   13,815  85.5%      94,106          86.2%
Sales in other          14,600   2,343   14.5%      15,107          13.8%
countries
Total                   100,670  16,159  100%       109,213         100.0%

Gross profit for the fourth quarter of 2012 was RMB(2.8 million) (US$(0.5
million)), compared with RMB7.4 million in the fourth quarter of 2011. Gross
margin was (2.8)%, compared with 6.8% in the fourth quarter of 2011. The
significant decrease in gross profit was primarily due to the significant
decrease in selling prices.  

Operating expenses for the fourth quarter of 2012 was RMB24.9 million (US$4.0
million) compared with RMB12.8 million in the fourth quarter of 2011. This
increase was mainly due to the increase of R&D expenses and goodwill
impairment for the year ended December 31, 2012.

Operating loss for the fourth quarter of 2012 was RMB(27.8 million) (US$(4.5
million)), compared with operating loss RMB(5.3 million) in the fourth quarter
of 2011.

Net loss attributable to the Company for the fourth quarter of 2012 was
RMB(12.5 million) (US$(2.0 million)), compared with net loss attributable to
the Company RMB(3.8 million) in the fourth quarter of 2011. Basic and diluted
loss per share was RMB(0.96) (US$(0.15)), compared with basic and diluted loss
per share of RMB(0.29) in the fourth quarter of 2011.

2012 Full Year Results

For the fiscal year ended December 31, 2012, our net revenues were RMB372.9
million (US$59.8 million), which was a decrease of RMB164.7 million or 30.6%,
as compared to 2011. The decrease in revenue was mainly due to the reduction
of average selling prices by 30.6% and total sales volumes by 0.7%. 

In 2012, sales of specialty films were RMB92.5 million (US$14.9 million) and
24.8% of our total revenues as compared to RMB140.5 million and 26.1% in 2011,
which was a decrease of RMB48.0 million, or 34.1%, as compared to the same
period in 2011. The decrease was largely attributable to the decrease in
demand and selling prices for films in electronics and high-end packaging.

The Company's revenue by significant types of films for the periods ended
December 31, 2012 and 2011 is as follows (amounts in thousands):

                             For the year ended December 31,
                            2012           % of Total 2011    % of Total
                            RMB     US$               RMB
Stamping and transfer film  202,029 32,428 54.2%      293,768 54.6%
Printing film               42,449  6,814  11.4%      55,218  10.3%
Metallized film             18,886  3,031  5.1%       28,205  5.3%
Specialty film              92,537  14,853 24.8%      140,491 26.1%
Base film for other         16,966  2,723  4.6%       19,963  3.7%
applications
                            372,867 59,849 100.0%     537,645 100.0%

Overseas sales were RMB70.6 million or US$11.3 million, or 18.9% of total
revenues, compared with RMB145.5 million or 27.1% of total revenues in 2011.
The decrease in overseas sales was mainly due to less demand from
international markets and enhanced competition as well as anti-dump measures
taken by the USA and South Korea, which led to decrease in orders from the
overseas markets and the significant decrease of selling prices compared to
the same period of 2011.

The following is a breakdown of domestic versus overseas sales for the periods
ended December 31, 2012 and 2011 (amounts in
thousands):                                                                   

                For the year ended December 31,
                2012           % of Total 2011    % of Total
                RMB     US$               RMB
Sales in China  302,290 48,521 81.1%      392,195 72.9%
Sales in other  70,577  11,328 18.9%      145,450 27.1%
countries
                372,867 59,849 100.0%     537,645 100.0%

Our gross loss was RMB(3.1 million) (US$(0.5 million)) for the year of 2012,
representing a gross margin of (0.8)%, as compared to a gross margin of 15.9%
in 2011. Gross margin decreased by 16.7 percentage points compared to the same
period in 2011. Our average unit selling price decreased by 30.6% compared to
last year due to excess capacity and stronger competition in the market. In
addition, the main raw materials used in our production of BOPET films,
polyethylene terephthalate (or PET) resin and additives, comprised
approximately 73.0% of our total costs of goods sold and these prices were
greatly influenced by price fluctuation in crude oil. Our main raw material
costs, PET resin, were reduced by 14.7% compared to last year. The decrease in
product selling prices largely exceeded that in main raw material costs during
2012 compared with 2011, which contributed to the significant decrease in our
gross profit.

Our operating expenses during the year ended December 31, 2012 were RMB60.9
million, which was an increase of RMB6.1 million, or 11.2%, as compared to
2011. The increase was mainly due to goodwill impairment for the year ended
December 31, 2012.

Total other income during the year ended December 31, 2012 was RMB1.8 million
(US$0.3 million), compared to total other expense of RMB(5.7 million) in 2011,
which was mainly attributable to interest capitalization of RMB11.2 million
(US$1.8 million) related to the third production line project in 2012.
Interest payments totaled RMB11.2 million (US$1.8 million) during 2012, which
was RMB1.0 million or 9.3% higher than that in 2011, mainly due to higher
interest rates on bank loans.

Income tax benefits during the year ended December 31, 2012 were RMB7.7
million (US$1.2 million) compared to an income tax expense of RMB(4.0 million)
during 2011, which was mainly attributable to the tax effect of changes in
deferred tax during 2012.

Net loss attributable to the Company for full year 2012 was RMB(54.4 million)
(US$(8.7 million)), compared with net income of RMB21.1 million in 2011.

Net cash provided by operating activities was RMB46.5 million (US$7.5 million)
for the year ended December 31, 2012 as compared to net cash used in operating
activities of RMB(14.0 million) for the year ended December 31, 2011. This
increase in cash flows from operating activities was attributable primarily to
the decrease in accounts receivables. In this year, we took actions to collect
overdue invoices from our customers, which resulted in an increase in cash
flows.

Cash and cash equivalents on December 31, 2012 was RMB5.0 million (US$0.8
million), compared with RMB44.2 million as of December 31, 2011.

Conference Call Information

The Company will host a teleconference on Friday, April 12, 2013, 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: 411313. The replay will be available
until May 12, 2013, at 11:59 p.m. EDT.

About Fuwei Films

Fuwei Films conducts its business through its wholly owned subsidiary, Fuwei
Films (Shandong) Co., Ltd. ("Shandong Fuwei"). Shandong Fuwei develops,
manufactures and distributes high-quality plastic films using the biaxial
oriented stretch technique, otherwise known as BOPET film (biaxially oriented
polyethylene terephthalate). Fuwei Films' 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 is 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:
Miss Lysander Lee
Investor Relations Officer
Phone: +86 133 615 59266

In the U.S.:
Ms. Leslie Wolf-Creutzfeldt
Investor Relations
Grayling
Phone: +1-646-284-9472
Email: leslie.wolf-creutzfeldt@grayling.com

 

Financial Tables Follow

 

FUWEI FILMS (HOLDINGS) CO., LTD and SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
As of December 31, 2012 and 2011
(amounts in thousands, except share and per share data)
                                          December 31, 2012  December 31, 2011
                                          RMB      US$       RMB
ASSETS
Current assets
Cash and cash equivalents                 5,006    804       44,172
Restricted cash                           21,457   3,444     102,212
Accounts and bills receivable, net        21,587   3,465     52,457
Inventories                               34,291   5,504     41,774
Advance to suppliers                      13,543   2,174     8,808
Prepayments and other receivables         26,174   4,201     31,172
Deferred tax assets - current             1,857    298       1,309
Total current assets                      123,915  19,890    281,904
Plant, properties and equipment, net      233,335  37,453    277,119
Construction in progress                  337,990  54,251    119,647
Lease prepayments, net                    19,523   3,134     20,047
Advance to suppliers - long term, net     5,299    851       62,799
Goodwill                                  -        -         10,276
Long-term deposit                         16,760   2,690     16,760
Other assets                              262      42        -
Deferred tax assets - non current         10,466   1,680     1,622
Total assets                              747,550  119,991   790,174
LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings                     110,000  17,656    168,501
Accounts payables                         28,796   4,622     19,317
Notes payable                             38,299   6,147     -
Advance from customers                    11,714   1,880     11,876
Accrued expenses and other payables       6,831    1,096     5,798
Obligations under capital leases-current  6,282    1,008     -
Total current liabilities                 201,922  32,409    205,492
Obligations under capital leases          13,718   2,202
Long-term loan                            10,000   1,605     10,000
Deferred tax liabilities                  3,476    558       1,811
Total liabilities                         229,116  36,774    217,303
Equity
Shareholders' equity
Registered capital(of US$0.129752 par
value; 20,000,000 shares                  13,323   2,138     13,323
authorized; 13,062,500 issued and
outstanding)
Additional paid-in capital                311,907  50,065    311,907
Statutory reserve                         37,441   6,010     37,441
Retained earnings                         155,341  24,934    209,768
Accumulated other comprehensive income    1,222    198       1,230
Total shareholders' equity                519,234  83,345    573,669
Non-controlling interest                  (800)    (128)     (798)
Total equity                              518,434  83,217    572,871
Total liabilities and equity              747,550  119,991   790,174

 

FUWEI FILMS (HOLDINGS) CO., LTD and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the Years Ended December 31, 2012, 2011 and 2010
(amounts in thousands, except share and per share data)
                                                                            The Year Ended December 31, 
                                                                            2012                  2011       2010
                                                                            RMB        US$        RMB        RMB
Net sales                                                                   372,866    59,849     537,645    501,458
Cost of sales                                                               375,973    60,348     452,173    370,905
Gross (loss) margin                                                         (3,107)    (499)      85,472     130,553
Operating expenses:
Selling expenses                                                            18,212     2,923      19,930     21,642
Administrative expenses                                                     32,389     5,199      34,806     49,281
Goodwill impairment                                                         10,276     1,649      -          -
Total operating expenses                                                    60,877     9,771      54,736     70,922
Operating (loss) income                                                     (63,984)   (10,270)   30,736     59,630
Other income (expense):
- Interest income                                                           1,022      164        2,612      544
- Interest expense                                                          -          -          (10,227)   (8,846)
- Others income (expense), net                                              798        128        1,872      (575)
Total other income (expense)                                                1,820      292        (5,743)    (8,877)
(Loss) Income before provision for income taxes                             (62,164)   (9,978)    24,993     50,754
Income tax benefit (expense)                                                7,727      1,240      (3,955)    (11,059)
Net (Loss) income                                                           (54,437)   (8,738)    21,038     39,695
Net (Loss) income attributable to noncontrolling interests                  (10)       (2)        (43)       (1,088)
Net income (loss) attributable to the Company                               (54,427)   (8,736)    21,081     40,783
Other comprehensive income (loss):
- Foreign currency translation adjustments attributable to noncontrolling   8          1          39         18
interest
- Foreign currency translation adjustments attributable to                  (8)        (1)        44         193
the Company
Comprehensive income (loss) attributable to non-                            (2)        (1)        (4)        (1,070)
controlling interest
Comprehensive (loss) income attribute to the Company                        (54,435)   (8,737)    21,125     40,976
(Loss) Earnings per share,                                                  (4.17)     (0.67)     1.61       3.12
Basic and diluted
Weighted average number ordinary shares,                                    13,062,500 13,062,500 13,062,500 13,062,500
Basic and diluted 

 

FUWEI FILMS (HOLDINGS) CO., LTD and SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2012, 2011 and 2010
                                        The Years Ended December 31, 
                                        2012                2011      2010
                                        RMB       US$       RMB       RMB
Cash flow from operating activities
Net (loss) income                       (54,437)  (8,738)   21,038    39,695
Adjustments to reconcile net (loss)
income to net cash
(used in) provided by operating
activities
- Loss on disposal of property, plant   10        2         -         -
and equipment
- Loss on goodwill impairment           10,276    1,649     -         -
- Depreciation of property, plant and   48,709    7,818     43,783    36,731
equipment
- Amortization of intangible assets     524       84        454       454
- Deferred income taxes                 (7,727)   (1,240)   165       5,231
- Bad debt (recovery) expense           1,026     165       (354)     (266)
- Inventory provision                   -         -         3,533     -
Changes in operating assets and
liabilities 
- Accounts and bills receivable         31,460    5,050     (26,620)  3,404
- Inventories                           7,483     1,201     7,270     (7,538)
- Advance to suppliers                  (6,351)   (1,019)   2,167     (7,018)
- Prepaid expenses and other current    29,192    4,686     (30,180)  523
assets
- Accounts payable                      9,579     1,538     5,021     (11,581)
- Accrued expenses and other payables   789       127       (7,185)   8,341
- Advance from customers                (162)     (26)      (25,415)  24,683
- Tax payable                           (23,920)  (3,839)   (7,695)   5,917
Net cash provided by (used in)          46,451    7,458     (14,018)  98,575
operating activities
Cash flow from investing activities
Purchases of property, plant and        (5,285)   (848)     (35,943)  (2,951)
equipment
Restricted cash related to trade        80,752    12,962    (100,915) 11,217
finance
Advanced to suppliers - non current     57,500    9,229     (273)     (420)
Amount change in construction in        (207,432) (33,295)  17,806    39,926
progress
Interest capitalization related to CIP  (11,174)  (1,794)   -         -
Amount decrease in deposit              -         -         -         4,240
Proceeds from sale of property, plant   250       40        -         -
and equipment
Net cash (used in) provided by          (85,389)  (13,706)  (119,325) 52,012
investing activities
Cash flow from financing activities
Principal payments of short-term bank   (168,501) (27,046)  (142,000) (11,179)
loans
Proceeds from short-term bank loans     110,000   17,656    148,501   5,000
Change in notes payable                 38,299    6,147     -         -
Proceeds from sale-leaseback equipment  20,000    3,210     -         -
Net cash (used in) provided by          (202)     (33)      6,501     (6,179)
financing activities
Effect of foreign exchange rate         (26)      67        (213)     16
changes
Net (decrease) increase in cash and     (39,166)  (6,214)   (127,055) 144,424
cash equivalent
Cash and cash equivalent
At beginning of period/year             44,172    7,018     171,227   26,804
At end of period/year                   5,006     804       44,172    171,227
SUPPLEMENTARY DISCLOSURE:
Interest paid                           11,174    1,794     10,227    8,846
Income tax paid                         -         -         9,654     3,658
SUPPLEMENTARY SCHEDULE OF NONCASH
INVESTING
AND FINANCIAL ACTIVITIES:
Account payable for plant and           6,003     964       1,730     -
equipment:
Obligations for acquired equipment      20,000    3,210     -         -
under capital lease:

SOURCE Fuwei Films (Holdings) Co., Ltd.

Website: http://www.fuweiholdings.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement