Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

Fuwei Films Announces Its Unaudited Financial Results for the First Quarter of 2013



Fuwei Films Announces Its Unaudited Financial Results for the First Quarter of
                                     2013

-Teleconference to be Held on Wednesday, May 22, 2013 at 9:00 am EDT -

PR Newswire

BEIJING, May 21, 2013

BEIJING, May 21, 2013 /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 2013 ended March 31,
2013.

Highlights

  o Revenues were RMB76.6 million (US$12.3 million), compared with RMB91.0
    million in the same period of 2012.
  o Net cash used in operating activities was RMB3.3 million (US$0.5 million),
    compared with net cash provided by operating activities of RMB45.9 million
    in the same period of 2012.
  o Basic and diluted net loss per share was RMB1.38 (US$0.22), compared with
    basic and diluted net loss per share of RMB1.16 in the same period of
    2012.
  o Our third production line is still under trial operation. Although the
    products from this production line have yet to meet the specifications and
    quality standards specified in the client's orders on a consistent basis,
    it has produced some commodity thick films of thickness from 38μm to
    250μm, and we are producing some sample diffusion films (a type of TFT-LCD
    optical film) at 188μm at the request of our clients. We will continue to
    conduct commissioning and testing to address any possible issues and
    develop new products during the trial operation.

Mr. Xiaoan He, Chairman and CEO of Fuwei Films, said, "We are still facing
strong competition arising from increased supply over demand in the market
which is impacting our quarterly results. However, I am pleased to report that
our progress with the third production line is on track. We hope we can
increase our revenue by accelerating R & D of low-end and high-end TFT-LCD
optical films on the third production line."

First Quarter of 2013 Results

Net sales during the first quarter ended March 31, 2013 were RMB76.6 million
(US$12.3 million), compared to RMB91.0 million, during the same period in
2012, representing a decrease of RMB14.4 million or 15.8%, mainly due to the
reduction of average sales price by 1.3% arising from stronger competition in
China and decrease of total sales volumes by 14.8%.

Overseas sales were RMB12.6 million or US$2.0 million, or 16.5% of total
revenues, compared with RMB16.3 million or 17.9% of total revenues in the
first quarter of 2012. The increase of average sales price caused an increase
of RMB0.5 million and the decrease in sales volume resulted in a decrease of
RMB4.2 million. The decrease in overseas sales was mainly due to the lower
demand from international markets and enhanced competition as well as
anti-dumping measures taken by the USA and South Korea, which led to a
decrease in orders from the overseas markets compared to the same period of
2012.

The following is a breakdown of domestic versus overseas sales for the
three-month periods ended March 31, 2013 and 2012 (amounts in thousands except
percentages):

                          Three-Month Period Ended
                          March 31, 2013 % of Total March 31, 2012 % of Total
                          RMB     US$               RMB
Sales in China            63,979  10,301 83.5%      74,700         82.1%
Sales in other countries  12,598  2,029  16.5%      16,311         17.9%
Total                     76,577  12,330 100.0%     91,011         100.0%

Gross loss was RMB1.2 million (US$0.2 million) for the first quarter ended
March 31, 2013, representing a gross margin of negative 1.6%, as compared to a
gross margin of negative 3.3% for the same period in 2012. Correspondingly,
gross profit rate increased by 1.7 percentage points compared to the same
period in 2012. Our average product sales prices decreased by 1.3% compared to
the same period last year while the average cost of goods sold decreased by
17.3% compared to the same period last year. Consequently, the decrease in
cost of goods sold largely exceeded that in sales revenue during the first
quarter ended March 31, 2013 compared with the same period in 2012, which
contributed to the increase in our gross profit margin.

Operating expenses for the first quarter ended March 31, 2013 were RMB13.7
million (US$2.2 million), which was RMB3.3 million, or 31.7% higher than the
same period in 2012. This increase was mainly due to increased R&D expenditure
in the first quarter ended March 31, 2013.

Net loss attributable to the Company during the first quarter ended March 31,
2013 was RMB18.1 million (US$2.9 million) compared to net loss attributable to
the Company of RMB15.1 million during the same period in 2012, representing an
increase of RMB3.0 million.

Basic and diluted net loss per share was RMB1.38 (US$0.22), compared with
basic and diluted net loss per share of RMB1.16 in the first quarter of 2012.

Total shareholders' equity was RMB501.2 million (US$80.7 million) as of March
31, 2013, compared with RMB519.2 million as of December 31, 2012.

As of March 31, 2013, the Company had 13,062,500 basic and diluted total
ordinary shares outstanding.

Conference Call Information

The Company will host a teleconference on Wednesday, May 22, 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: 41461. The replay will be available
until June 22, 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. ("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'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:

Miss Lysander Lee
Investor Relations Officer
Phone: +86-133-615-59266
Email: fuweiIR@fuweifilms.com

In the U.S.:

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

Financial Tables to Follow

FUWEI FILMS (HOLDINGS) CO., LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF MARCH 31, 2013 AND DECEMBER 31, 2012

(amounts in thousands except share and per share value)

(Unaudited)
                                            March 31, 2013   December 31, 2012
                                            RMB     US$      RMB
ASSETS
Current assets
Cash and cash equivalents                   29,938  4,820    5,006
Restricted cash                             48,827  7,862    21,457
Accounts and bills receivable, net          14,177  2,283    21,587
Inventories                                 49,004  7,890    34,291
Advance to suppliers                        4,693   756      13,543
Prepayments and other receivables           30,158  4,856    26,174
Deferred tax assets - current               1,913   308      1,857
Total current assets                        178,710 28,775   123,915
Plant, properties and equipment, net        221,351 35,640   233,335
Construction in progress                    326,722 52,605   337,990
Lease prepayments, net                      19,392  3,122    19,523
Advance to suppliers - long term, net       6,333   1,020    5,299
Long-term deposit                           16,760  2,699    16,760
Other Assets                                13,393  2,156    262
Deferred tax assets - non current           10,431  1,679    10,466
Total assets                                793,092 127,696  747,550
LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings                       112,032 18,038   110,000
Accounts payables                           30,054  4,839    28,796
Notes payable                               92,072  14,824   38,299
Advance from customers                      15,098  2,431    11,714
Accrued expenses and other payables         7,082   1,140    6,831
Obligations under capital leases-current    8,061   1,298    6,282
Total current liabilities                   264,399 42,570   201,922
Obligations under capital leases            14,848  2,391    13,718
Long-term loan                              10,000  1,610    10,000
Deferred tax liabilities                    3,474   559      3,476
Total liabilities                           292,721 47,130   229,116
Equity
Shareholders' equity
Registered capital(of US$0.129752 par
value; 20,000,000 shares authorized;        13,323  2,145    13,323
13,062,500 issued and outstanding)
Additional paid-in capital                  311,907 50,220   311,907
Statutory reserve                           37,441  6,028    37,441
Retained earnings                           137,265 22,101   155,341
Cumulative translation adjustment           1,233   200      1,222
Total shareholders' equity                  501,169 80,694   519,234
Non-controlling interest                    (798)   (128)    (800)
Total equity                                500,371 80,566   518,434
Total liabilities and equity                793,092 127,696  747,550

 

 

FUWEI FILMS (HOLDINGS) CO., LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)

FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2013 AND 2012

(amounts in thousands except share and per share value)

(Unaudited)

 
                                       The Three-Month Period Ended March 31, 
                                       2013                        2012
                                       RMB          US$            RMB
Net sales                              76,577       12,330         91,011
Cost of sales                          77,768       12,521         94,037
Gross loss                             (1,191)      (191)          (3,026)
Operating expenses
Selling expenses                       4,345        700            4,086
Administrative expenses                9,306        1,498          6,348
Total operating expenses               13,651       2,198          10,434
Operating loss                         (14,842)     (2,389)        (13,460)
Other income (expense)
- Interest income                      61           10             658
- Interest expense                     (3,217)      (518)          (2,725)
- Others (expense) income, net         (101)        (16)           427
Total other expense                    (3,257)      (524)          (1,640)
 Loss before provision for income      (18,099)     (2,913)        (15,100)
taxes
Income tax benefit (expense)           23           4              (31)
Net loss                               (18,076)     (2,909)        (15,131)
Net loss attributable to               -            -              (3)
non-controlling interests
Net loss attributable to the Company   (18,076)     (2,909)        (15,128)
Other comprehensive income
- Foreign currency translation
adjustments attributable to            2            -              -
non-controlling interest
- Foreign currency translation
adjustments attributable to the        11           2              (8)
Company
Comprehensive income (loss)
attributable to non-controlling        2            0              (3)
interest
Comprehensive (loss) income attribute  (18,065)     (2,907)        (15,136)
to the Company
Loss per share,                        (1.38)       (0.22)         (1.16)
Basic and diluted
Weighted average number ordinary
shares,                                13,062,500   13,062,500     13,062,500
Basic and diluted 

 

FUWEI FILMS (HOLDINGS) CO., LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2013 AND 2012

(amounts in thousands except share and per share value)

(Unaudited)

 
                                       The Three-Month Period Ended March 31, 
                                       2013                        2012
                                       RMB          US$            RMB
Cash flow from operating activities
Net loss                               (18,076)     (2,909)        (15,131)
Adjustments to reconcile net loss to
net cash
(used in)provided by operating
activities
- Depreciation of property, plant and  12,197       1,964          12,186
equipment
- Amortization of intangible assets    131          21             113
- Deferred income taxes                (23)         (4)            31
- Bad debt expense                     376          61             14
Changes in operating assets and
liabilities 
- Accounts and bills receivable        7,035        1,133          34,682
- Inventories                          (14,714)     (2,369)        (1,641)
- Advance to suppliers                 8,850        1,425          (3,201)
- Prepaid expenses and other current   (1,379)      (222)          19,129
assets
- Accounts payable                     1,258        203            (1,926)
- Accrued expenses and other payables  264          43             407
- Advance from customers               3,385        545            1,511
- Tax payable                          (2,605)      (420)          (234)
Net cash (used in) provided by         (3,301)      (529)          45,940
operating activities
Cash flow from investing activities
Purchases of property, plant and       (213)        (34)           (91)
equipment
Restricted cash related to trade       (27,371)     (4,407)        (8,016)
finance
Advanced to suppliers - non current    (1,034)      (166)          271
Amount change in construction in       (1,862)      (300)          (3,916)
progress
Net cash (used in) investing           (30,480)     (4,907)        (11,752)
activities
Cash flow from financing activities
Principal payments of short-term bank  -            -              (20,000)
loans
Proceeds from short-term bank loans    2,032        327            -
Payment of capital lease obligation    (2,091)      (337)          -
Change in notes payable                53,773       8,658          6,510
Proceeds from sale-leaseback           5,000        805            -
equipment
Net cash provided by (used in)         58,714       9,453          (13,490)
financing activities
Effect of foreign exchange rate        (1)          (1)            (10)
changes
Net increase in cash and cash          24,932       4,016          20,688
equivalent
Cash and cash equivalent
At beginning of period/year            5,006        804            44,172
At end of period/year                  29,938       4,820          64,860
SUPPLEMENTARY DISCLOSURE:
Interest paid                          3,217        518            2,725
Income tax paid                        -            -              -
SUPPLEMENTARY SCHEDULE OF NONCASH INVESTING AND FINANCIAL ACTIVITIES:
Account payable for plant and          5,053        814            -
equipment:
Obligations for acquired equipment     22,909       3,689          -
under capital lease:

 

SOURCE Fuwei Films
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement