BEIJING, Feb. 11 /PRNewswire-Asia/ -- Fuwei Films (Holdings) Co. Limited (Nasdaq: FFHL) ("Fuwei" or "the Company"), a manufacturer and distributor of high-quality BOPET plastic films located in China, today announced that Fuwei Films (Shandong) Co., Ltd. ("Fuwei Shandong"), the Company's wholly owned operating subsidiary, received the High-and-New Tech Enterprise ("HNTE") designation from the Shandong Department of Science and Technology, National and Local Taxation Bureau of Shandong Province, as well as from the Shandong Province Financial Bureau. As the newly designated HNTE, Fuwei Shandong is entitled to a tax rate of 15%, rather than the general statutory tax rate of 25%.
"It's an honor to be among one of the few companies that have been designated as HNTEs in Shandong," said Mr. Xiaoan He, Chairman and CEO of Fuwei. "We believe that our new preferential tax rates, combined with the central and local governments' stimulus packages, will help us to increase our profitability by bringing down our costs and raising the customers' demand in the marketplace."
Previously, Fuwei Shandong had been an HNTE in Shandong Province. Because of China's new Enterprise Income Tax Law which became effective on January 1, 2008, the status Fuwei Shandong as an HNTE had to be renewed. Today's
re-designation entitles Fuwei Shandong to enjoy the preferential status retroactively as of January 1, 2008 until the expiration of the designation in 2011.
About Fuwei Films
Fuwei 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 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 the Company's ability to obtain adequate financing for its planned capital expenditure requirements; uncertainty as to the Company's 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 its products; uncertainty as to its ability to protect and enforce its intellectual property rights; uncertainty as to its 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 the Company's operations may differ materially from information contained in the forward-looking statements as a result of the risk factors.
