omniture

Fuwei Films Announces Its Unaudited Financial Results for the First Quarter of 2011

2011-05-11 05:50 2048

First quarter revenue increases nearly 100 percent compared to previous year

- Teleconference to be Held on May 11, 2011, at 8:00 a.m. EDT -


BEIJING, May 10, 2011 /PRNewswire-Asia-FirstCall/ -- Fuwei Films (Holdings) Co., Ltd. (Nasdaq: FFHL) ("Fuwei" 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 2011 ended March 31, 2011.

Highlights

  • Revenues were RMB 174.2 million or US$26.5 million, compared with RMB 88.5 million in the same period of 2010.
  • Net income was RMB 23.6 million or US$3.6 million, compared with RMB 0.3 million in the same period of 2010.
  • Basic and diluted earnings per share was RMB 1.81 or US$0.28, compared with RMB 0.02 in the same period of 2010.
  • Cash and cash equivalents as of March 31, 2011 was RMB 181.9 million or US$27.7 million, compared with RMB 171.2 million as of December 31, 2010.

Mr. Xiaoan He, Chairman and CEO, said, "Fuwei Films had an excellent first quarter with significant revenue and net income growth.  We are particularly pleased that demand for our higher margin specialty products is growing.  We are also seeing increased demand for our products from other global regions like Europe and South Korea, and we will continue to commit to the products differentiation strategy."  

First Quarter of 2011 Results

Revenues were RMB 174.2 million or US$26.5 million, compared with RMB 88.5 million in the same period of 2010, which was an increase of RMB 85.7 million, or 96.9% compared with the first quarter of 2010.  The significant increase in sales was mainly due to the increase of average unit sales price together with higher volumes of specialty film sales.

Sales of specialty films in the first quarter of 2011 were RMB 39.9 million or US$6.1 million, or 22.9% of total revenues, compared with RMB 8.5 million or 9.6% of total revenues in the same period of 2010. The increased sales of specialty films were largely a result of higher demand for high value-added BOPET films following recovery from the global financial crisis.

The following is a breakdown of commodity and specialty film sales for the three-month periods ended March 31, 2011 and 2010 (amounts in thousands):


 

 

 

 

Three-Month Period Ended

 

 

 

 

March 31, 2011

 

% of Total

 

March 31, 2010

 

% of Total

 

 

 

 

RMB

 

US$

 

RMB

 

 

 

 

 

 

 

 

 

 

Printing film

 

 

13,464

 

2,052

 

7.7%

 

9,286

 

10.5%

 

 

Stamping film

 

 

101,100

 

15,411

 

58.1%

 

57,683

 

65.2%

 

 

Metallization film

 

 

11,141

 

1,698

 

6.4%

 

7,705

 

8.7%

 

 

Specialty film

 

 

39,903

 

6,083

 

22.9%

 

8,532

 

9.6%

 

 

Base film for other applications

 

 

8,546

 

1,303

 

4.9%

 

5,250

 

5.9%

 

 

 

 

 

 

 

 

 

 

 Total

 

 

174,154

 

26,547

 

100.0%

 

88,455

 

100.0%

 

 

 

 

 

 

 

 

 

 

 


Overseas sales during the three month ended March 31, 2011 were RMB 64.8 million or US$9.9 million, or 33.4% of total revenues, compared with RMB 11.3 million or 12.8% of total revenues in the same period of 2010. The increase in overseas sales was mainly due to increased sales prices as well as the recovery of overseas markets, resulting in the increase of demand in overseas market such as in Europe, North America, and South Korea.

The following is a breakdown of domestic versus overseas sales for the three-month periods ended March 31, 2011 and 2010 (amounts in thousands):


 

 

 

 

Three-Month Period Ended

 

 

 

 

March 31, 2011

 

% of Total

 

March 31, 2010

 

% of Total

 

 

 

 

RMB

 

US$

 

RMB

 

 

Sales in China

 

 

109,367

 

16,672

 

66.6%

 

77,125

 

87.2%

 

 

Sales in other countries

 

 

64,787

 

9,876

 

33.4%

 

11,331

 

12.8%

 

 

 

 

 

 

 

 

 

 

Total

 

 

174,154

 

26,547

 

100.0%

 

88,455

 

100.0%

 

 

 

 

 

 

 

 

 

 

 


Gross profit was RMB 45.1 million or US$ 6.9 million for the first three months of 2011, compared with RMB 12.8 million in the same period of 2010. Gross margin was 25.9%, compared with 14.4% in the first quarter of 2010. This was mainly due to a significant increase in the average sales price of our products during the first quarter ended March 31, 2011 compared with the same period in 2010.

Operating expenses for the three months ended March 31, 2011 was RMB 15.7 million or US$2.4 million, compared with RMB 10.9 million in the first quarter of 2010. This increase was mainly due to increased R&D expense and freight costs associated with overseas sales.

Operating income for the first quarter of 2011 was RMB 29.4 million or US$4.5 million, compared with RMB 1.8 million in the same period of 2010.

Net income during the first three months of 2011 was RMB 23.6 million or US$3.6 million, compared with RMB 0.3 million in the first quarter of 2010.

Basic and diluted earnings per share was RMB 1.81 or US$0.28, compared with RMB 0.02 in the first quarter of 2010.

Total shareholders' equity was RMB 576.2 million (US$87.8 million) as of March 31, 2011, compared with RMB 552.5 million as of December 31, 2010.

As of March 31, 2011, the Company had 13,062,500 basic and diluted total ordinary shares outstanding.

In addition, on May 5, 2011, the Company received notification from the Weifang State-owned Assets Operation Administration Company (the "Administration Company"), that the former controlling shareholders of the Company, Messrs. Jun Yin, Duo Wang and Tongju Zhou, had transferred their entire ownership in several intermediate holding companies to the Administration Company, Ms. Qing Liu and Mr. Zhixin Han.  As a result of the transfers, and based on the information provided by the Administration Company, the Company believes that 52.9% of its outstanding ordinary shares are controlled indirectly by the Administration Company and 12.55% of its outstanding ordinary shares are jointly controlled indirectly by Ms. Liu and Mr. Han.

Conference Call Information

The Company will host a teleconference on Wednesday, May 11, 2011, at 8:00 a.m. EDT / 8:00 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 access codes: Account#: 286 and Conference ID: 371979. The replay will be available until June 11, 2011, 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'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 possible delisting of the Company's ordinary shares from the NASDAQ Global Market; 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.

Financial Tables to Follow

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

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF MARCH 31, 2011 AND DECEMBER 31, 2010

(amounts in thousands except share and per share value)

(Unaudited)


 

 

 

 

March 31, 2011

 

 

December 31, 2010

 

 

 

RMB

 

US$

 

 

RMB

 

 

ASSETS

 

 

Current assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

181,852

 

27,721

 

 

171,227

 

 

Restricted cash

 

 

333

 

51

 

 

1,314

 

 

Accounts and bills receivable, net

 

 

33,363

 

5,086

 

 

25,482

 

 

Inventories

 

 

52,056

 

7,935

 

 

52,577

 

 

Advance to suppliers

 

 

12,450

 

1,898

 

 

10,974

 

 

Prepayments and other receivables

 

 

584

 

20

 

 

994

 

 

Deferred tax assets - current

 

 

1,594

 

243

 

 

1,344

 

 

Total current assets

 

 

282,233

 

42,954

 

 

263,912

 

 

 

 

 

 

 

 

 

Plant, properties and equipment, net

 

 

277,708

 

42,333

 

 

284,891

 

 

Construction in progress

 

 

175,669

 

26,778

 

 

197,193

 

 

Lease prepayments, net

 

 

20,440

 

3,185

 

 

20,570

 

 

Advanced to suppliers - long term

 

 

5,391

 

822

 

 

2,787

 

 

Goodwill

 

 

10,276

 

1,566

 

 

10,276

 

 

Long-term deposit

 

 

16,760

 

2,555

 

 

16,760

 

 

Deferred tax assets - non current

 

 

1,728

 

263

 

 

1,763

 

 

 

 

 

 

 

 

 

Total assets

 

 

790,204

 

120,455

 

 

798,152

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

Current liabilities

 

 

 

 

 

 

 

Short-term borrowings

 

 

155,000

 

23,628

 

 

142,000

 

 

Accounts payables

 

 

15,194

 

2,316

 

 

14,296

 

 

Advance from customers

 

 

19,270

 

2,937

 

 

37,291

 

 

Accrued expenses and other payables

 

13,538

 

2,064

 

 

20,993

 

 

Deferred tax liabilities

 

 

1,819

 

277

 

 

1,822

 

 

 

 

204,821

 

31,222

 

 

216,402

 

 

Long-term loan

 

 

10,000

 

1,524

 

 

30,000

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

214,821

 

32,746

 

 

246,402

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

 

 

Registered capital (of US$0.129752 par value; 20,000,000 shares authorized; 13,062,500 issued and outstanding)

 

 

13,323

 

2,031

 

 

13,323

 

 

Additional paid-in capital

 

 

311,907

 

47,546

 

 

311,907

 

 

Statutory reserve

 

 

35,195

 

5,365

 

 

35,195

 

 

Retained earnings

 

 

214,577

 

32,709

 

 

190,933

 

 

Cumulative translation adjustment

 

 

1,179

 

180

 

 

1,186

 

 

Total shareholders' equity

 

 

576,181

 

87,831

 

 

552,544

 

 

Non-controlling interest

 

 

(798)

 

(122)

 

 

(794)

 

 

Total equity

 

 

575,383

 

87,709

 

 

551,750

 

 

Total liabilities and equity

 

 

790,204

 

120,455

 

 

798,152

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME

FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2011 AND 2010

(amounts in thousands except share and per share value)

(Unaudited)

 

 

 

 

The Period End March 31,

 

 

 

 

2011

 

 

2010

 

 

 

 

RMB

 

US$

 

 

RMB

 

 

 

 

 

 

 

 

 

Net sales

 

 

174,154

 

26,547

 

 

88,455

 

 

Cost of sales

 

 

(129,018)

 

(19,667)

 

 

(75,689)

 

 

 

 

 

 

 

 

 

Gross profit

 

 

45,136

 

6,880

 

 

12,767

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

Selling expenses

 

 

4,095

 

624

 

 

3,396

 

 

Administrative expenses

 

 

11,636

 

1,774

 

 

7,529

 

 

Total operating expenses

 

 

15,730

 

2,398

 

 

10,925

 

 

 

 

 

 

 

 

 

Operating income

 

 

29,405

 

4,482

 

 

1,842

 

 

 

 

 

 

 

 

 

Other income(expense)

 

 

 

 

 

 

 

- Interest income

 

 

551

 

84

 

 

14

 

 

- Interest expense

 

 

(2,299)

 

(350)

 

 

(1,618)

 

 

- Others income(expense), net

 

 

(104)

 

(16)

 

 

44

 

 

 

 

 

 

 

 

 

Total other income (expense)

 

 

(1,852)

 

(282)

 

 

(1,559)

 

 

 

 

 

 

 

 

 

Income before income tax

 

 

27,553

 

4,200

 

 

283

 

 

 

 

 

 

 

 

 

Income tax

 

 

3,913

 

596

 

 

19

 

 

 

 

 

 

 

 

 

Net Income

 

 

23,640

 

3,604

 

 

264

 

 

 

 

 

 

 

 

 

Net loss attributable to non-controlling interests

 

 

(4)

 

(1)

 

 

(36)

 

 

Net income attributable to the Company

 

 

23,644

 

3,604

 

 

300

 

 

 

 

 

 

 

 

 

Other comprehensive loss

 

 

 

 

 

 

 

- Foreign currency translation adjustments

 

 

(7)

 

(1)

 

 

(14)

 

 

 

 

 

 

 

 

 

Comprehensive income(loss) attributable to non-controlling interest


 

 

2

 

-

 

 

(36)

 

 

Comprehensive income attributable to the Company


 

 

23,632

 

3,603

 

 

286

 

 

 

 

 

 

 

 

 

Earnings per share, Basic and diluted

 

 

1.81

 

0.28

 

 

0.02

 

 

 

 

 

 

 

 

 

Weighted average number ordinary shares, Basic and diluted

 

 

13,062,500

 

13,062,500

 

 

13,062,500

 

 

 

 

 

 

 

 

 

 



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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE -MONTH PERIOD ENDED MARCH 31, 2011 AND 2010

(amounts in thousands except share and per share value)

(Unaudited)

 

 

 

 

Period Ended March 31, 2011

 

 

Period Ended March 31, 2010

 

 

 

 

RMB

 

US$

 

 

RMB

 

 

Cash flow from operating activities

 

 

 

 

 

 

 

Net income including non-controlling interest

 

 

23,640

 

3,604

 

 

264

 

 

Adjustments to reconcile net income to net cash

 

 

 

 

 

 

 

provided by/ (used in)operating activities

 

 

 

 

 

 

 

- Depreciation of property, plant and equipment

 

 

8,917

 

1,359

 

 

9,707

 

 

- Amortization of intangible assets

 

 

113

 

17

 

 

113

 

 

- Deferred income taxes

 

 

(218)

 

(33)

 

 

19

 

 

- Bad debt expense

 

 

22

 

3

 

 

356

 

 

- Accounts receivable

 

 

(7,902)

 

(1,205)

 

 

(5,693)

 

 

- Inventories

 

 

521

 

79

 

 

(1,954)

 

 

- Advance to suppliers

 

 

(1,475)

 

(225)

 

 

262

 

 

- Prepaid expenses and other current assets

 

 

409

 

62

 

 

23

 

 

- Accounts payable

 

 

897

 

137

 

 

(130)

 

 

- Accrued expenses and other payables

 

 

(6,130)

 

(934)

 

 

(419)

 

 

- Advance from customers

 

 

(18,021)

 

(2,747)

 

 

3,075

 

 

- Tax payable

 

 

(1,254)

 

(191)

 

 

978

 

 

 

 

 

 

 

 

 

Net cash provided by/(used in) operating activities

 

 

(481)

 

(73)

 

 

6,599

 

 

 

 

 

 

 

 

 

Cash flow from investing activities

 

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

(1,717)

 

(262)

 

 

(1,469)

 

 

Restricted cash related to trade finance

 

 

977

 

149

 

 

2,650

 

 

Advanced to suppliers - non current

 

 

(2,604)

 

(397)

 

 

326

 

 

Amount decrease/(additional) in construction in progress

 

 

21,524

 

3,281

 

 

(663)

 

 

 

 

 

 

 

 

 

Net cash provided by investing activities

 

 

18,180

 

2,771

 

 

844

 

 

 

 

 

 

 

 

 

Cash flow from financing activities

 

 

 

 

 

 

 

Principal payments of short-term bank loans

 

 

(7,000)

 

(1,067)

 

 

(10,000)

 

 

Proceeds from short-term bank loans

 

 

-

 

-

 

 

10,000

 

 

 

 

 

 

 

 

 

Net cash used in financing activities

 

 

(7,000)

 

(1,067)

 

 

-

 

 

 

 

 

 

 

 

 

Effect of foreign exchange rate changes

 

 

(72)

 

193

 

 

18

 

 

 

 

 

 

 

 

 

Net increase in cash and cash equivalent

 

 

10,627

 

1,824

 

 

7,461

 

 

 

 

 

 

 

 

 

Cash and cash equivalent

 

 

 

 

 

 

 

At beginning of period

 

 

171,227

 

25,897

 

 

26,804

 

 

At end of period

 

 

181,852

 

27,721

 

 

34,265

 

 

 

 

 

 

 

 

 

SUPPLEMENTARY DISCLOSURE:

 

 

 

 

 

 

 

Interest paid

 

 

2,299

 

350

 

 

2,045

 

 

Income tax paid

 

 

4,723

 

720

 

 

-

 

 

 

 

 

 

 

 

 

 




 

 

 

 

For more information, please contact:

 

 

 

 

In China:

 

 

 

 

Ms. Amy Gao

 

 

Investor Relations Manager

 

 

Phone: +86-10-6852-2612

 

 

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

 

 

 

 

 

 

 


Source: Fuwei Films (Holdings) Co., Ltd.
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