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 oRevenues were RMB76.6 million (US$12.3 million), compared with RMB91.0 million in the same period of 2012. oNet 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. oBasic 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. oOur 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 possibleissues and develop new productsduringthe 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$2.0 million, or 16.5% of total revenues, compared with RMB16.3 million or 17.9% of total revenues in the first quarter of 2012. The increase of average sales price caused an increase of RMB0.5 million and the decrease in sales volume resulted in a decrease of RMB4.2 million. The decrease in overseas sales was mainly due to the lower demand from international markets and enhanced competition as well as anti-dumping measures taken by the USA and South Korea, which led to a decrease in orders from the overseas markets compared to the same period of 2012. The following is a breakdown of domestic versus overseas sales for the three-month periods ended March 31, 2013 and 2012 (amounts in thousands except percentages): Three-Month Period Ended March 31, 2013 %ofTotal March 31, 2012 %ofTotal RMB US$ 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: firstname.lastname@example.org 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
Fuwei Films Announces Its Unaudited Financial Results for the First Quarter of 2013
Press spacebar to pause and continue. Press esc to stop.