BEIJING, Jan. 23 /PRNewswire-Asia-FirstCall/ -- Fuwei Films (Holdings) Co., Ltd. (Nasdaq: FFHL) ("Fuwei" or the "Company"), a manufacturer and distributor of high-quality BOPET plastic films located in China, today announced its preliminary financial results for its 2008 fourth quarter ended December 31, 2008.
For the fourth quarter of 2008, revenue is expected to be up to $15 million. The fourth quarter net loss is expected to be up to $1.2 million.
Since October 2008, Fuwei has been impacted by the global recession. Reduced demand, especially for high value-added specialty films, has resulted in a significant increase in inventory and a decline in sales prices. The leased production line has been suspended for two months in the fourth quarter of 2008 which reflected current market conditions. The Company has also temporarily closed its marketing office in Japan.
"Our expectations reflect a difficult and challenging marketplace for BOPET films globally. We have adopted measures that are expected to minimize the adverse affect of the financial crisis, such as reducing costs, lowering management expenses and marketing expenditures," Mr. Xiaoan He, Chairman and CEO of Fuwei Films commented. "We hope that the governments' stimulus plans around the world will start to take effect sooner than expected. We are confident and expect to maintain the Company's industry leadership. With the recovery of the macro economic environment, we believe we will be one of the first companies to regain continued growth, and we expect to acquire new and more exciting opportunities in both domestic and overseas markets."
About Fuwei Films
Fuwei Films conducts its business through its wholly owned subsidiary Shandong Fuwei Films Co., Ltd. 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'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 some of which, include among other things, 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 further information, please contact:
In China:
Maggie Huang
Investor Relations Manager
Tel: +86-10-8518-5620
Email: fuweiIR@fuweifilms.com
In the U.S.:
Leslie Wolf-Creutzfeldt
Investor Relations
Grayling Global
Tel: +1-646-284-9472
Email: lwolf-creutzfeldt@hfgcg.com
