omniture

Fuwei Films Announces Second Quarter and First Half 2019 Unaudited Financial Results

-Teleconference to be held on Friday, August 23, 2019 at 9:00 am EDT-
2019-08-23 04:00 6861

BEIJING, Aug. 23, 2019 /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 three-month and six-month periods ended June 30, 2019.

Second Quarter 2019 Financial Highlights

  • Net sales were RMB88.1 million (US$12.8 million), 10.7% higher compared to RMB79.6 million during the same period in 2018.
  • Sales of specialty films were RMB42.0 million (US$6.1 million) or 47.6% of our total revenues, 36.8% higher compared to RMB30.7 million in the same period of 2018.
  • Overseas sales were RMB14.3 million (US$2.1 million), or 16.3% of total revenues.
  • Our gross profit was RMB18.6 million (US$2.7 million), 173.5% higher compared to RMB6.8 million during the same period in 2018.
  • Gross margin was 21.1%, compared to 8.5% during the same period in 2018.
  • Net profit attributable to the company was RMB1.0 million, compared to net loss of RMB8.7 million during the same period in 2018.

First Six Months 2019 Financial Highlights

  • Net sales were RMB169.2 million (US$24.6 million), 8.1% higher compared to RMB156.5 million in the same period in 2018.
  • Sales of specialty films were RMB74.2 million (US$10.8 million) or 43.8% of our total revenues, 16.5% higher compared to RMB63.7 million or 40.7% in the same period of 2018.
  • Overseas sales were RMB30.6 million (US$4.5 million), or 18.1% of total revenues.
  • Gross profit was RMB31.0 million (US$4.5 million), 90.2% higher compared to RMB16.3 million during the same period in 2018.
  • Gross margin was 18.3%, higher than 10.4% for the same period in 2018.

Mr. Zengyong Wang, Chairman and CEO of Fuwei Films, commented, "We are pleased to return to profitability after years of hard work and believe that the worst may be behind us. We believe the turnaround was a result of our commitment to differentiated product strategy and continuous R&D. Sales of specialty films continued to increase and accounted for 47.6% of total sales during the quarter compared to 38.6% last year. Meanwhile, we believe research and development is helping us launch new products and expand the end-user applications of our films. Looking ahead, the BOPET industry remains competitive as a result of higher supply. Nevertheless, we will continue to innovate, tackle overseas markets and execute differentiated product strategy to improve performance and capture opportunities."

Financial Results for the Three Months Ended June 30, 2019

Net sales during the second quarter ended June 30, 2019 were RMB88.1 million (US$12.8 million), compared to RMB79.6 million during the same period in 2018, representing an increase of RMB8.5 million or 10.7%. The increase of average sales price caused an increase of RMB7.4 million and the sales volume increase caused an increase of RMB1.1 million.

In the second quarter of 2019, sales of specialty films were RMB42.0 million (US$6.1 million) or 47.6% of our total revenues as compared to RMB30.7 million or 38.6% in the same period of 2018, which was an increase of RMB11.3 million, or 36.8% as compared to the same period in 2018. The increase of average sales price caused an increase of RMB1.2 million and the increase in the sales volume caused an increase of RMB10.1 million. The increase was largely attributable to the increase in sales volume.

The following is a breakdown of commodity and specialty film sales (amounts in thousands):


Three-Month
Period Ended

% of 

Three-Month
Period Ended

% of 


 June 30, 2019

Total

June 30, 2018

Total


RMB

US$


RMB


Stamping and transfer film

28,596

4,165

32.4%

29,428

37.0%

Printing film

8,512

1,240

9.7%

11,713

14.7%

Metallization film

1,938

282

2.2%

622

0.8%

Specialty film

41,958

6,112

47.6%

30,748

38.6%

Base film for other application

7,113

1,037

8.1%

7,088

8.9%








88,117

12,836

100.0%

79,599

100.0%

Overseas sales were RMB14.3 million or US$2.1 million, or 16.3% of total revenues, compared with RMB16.6 million or 20.9% of total revenues in the second quarter of 2018. The increase of average sales price caused an increase of RMB0.8 million and the decrease in sales volume resulted in a decrease of RMB3.1 million.

The following is a breakdown of PRC domestic and overseas sales (amounts in thousands):


Three-Month
Period Ended

% of 

Three-Month
Period Ended

% of 


 June 30, 2019

Total

June 30, 2018

Total


RMB

US$


RMB


Sales in China

73,777

10,747

83.7%

62,994

79.1%

Sales in other countries

14,340

2,089

16.3%

16,605

20.9%








88,117

12,836

100.0%

79,599

100.0%

Our gross profit was RMB18.6 million (US$2.7 million) for the second quarter ended June 30, 2019, representing a gross profit rate of 21.1%, as compared to a gross profit rate of 8.5% for the same period in 2018. Correspondingly, gross margin increased by 12.6 percentage point compared to the same period in 2018. Our average product sales prices increased by 9.1% compared to the same period last year while the average cost of goods sold decreased by 5.9% compared to the same period last year. Consequently, it resulted in an increase in our gross profit.

Operating expenses for the second quarter ended June 30, 2019 were RMB15.0 million (US$2.2 million), as compared to RMB13.3 million for the same period in 2018.

Net profit attributable to the Company during the second quarter ended June 30, 2019 was RMB1.0 million (US$0.1 million) while net loss attributable to the Company was RMB8.7 million during the same period in 2018.

Financial Results for the Six Months Ended June 30, 2019

Net sales during the six-month period ended June 30, 2019 were RMB169.2 million (US$24.6 million), compared to RMB156.5 million in the same period in 2018, representing an increase of RMB12.7 million or 8.1%. The increase in average sales price caused an increase of RMB10.4 million and the increase in the sales volume caused an increase of RMB2.3 million.

In the six-month period ended June 30, 2019, sales of specialty films were RMB74.2 million (US$10.8 million) or 43.8% of our total revenues as compared to RMB63.7 million or 40.7% in the same period of 2018, which was an increase of RMB10.5 million, or 16.5% as compared to the same period in 2018. The increase in average sales price caused an increase of RMB3.4 million and the increase in the sales volume caused an increase of RMB7.1 million.

The following is a breakdown of commodity and specialty film sales (amounts in thousands):


Six-Month
Period Ended

% of 

Six-Month
Period Ended

% of 


 June 30, 2019

Total

June 30, 2018

Total


RMB

US$


RMB


Stamping and transfer film

60,123

8,757

35.6%

60,281

38.6%

Printing film

20,732

3,020

12.3%

17,581

11.2%

Metallization film

2,614

381

1.5%

1,795

1.1%

Specialty film

74,154

10,802

43.8%

63,695

40.7%

Base film for other application

11,568

1,685

6.8%

13,174

8.4%








169,191

24,645

100.0%

156,526

100.0%

Overseas sales during the six months ended June 30, 2019 were RMB30.6 million or US$4.5 million, or 18.1% of total revenues, compared with RMB27.6 million or 17.6% of total revenues in the same period in 2018. This was RMB3.0 million higher than the same period in 2018. The increase in sales volume resulted in an increase of RMB1.2 million and the increase in average sales price caused an increase of RMB1.8 million.

The following is a breakdown of PRC domestic and overseas sales (amounts in thousands):


Six-Month
Period Ended

% of 

Six-Month
Period Ended

% of 


 June 30, 2019

Total

June 30, 2018

Total


RMB

US$


RMB


Sales in China

138,631

20,193

81.9%

128,922

82.4%

Sales in other countries

30,560

4,452

18.1%

27,604

17.6%








169,191

24,645

100.0%

156,526

100.0%

Our gross profit was RMB31.0 million (US$4.5 million) for the first six months ended June 30, 2019, representing a gross margin rate of 18.3%, as compared to a gross margin rate of 10.4% for the same period in 2018. Our average product sales prices increased by 6.5% compared to the same period last year while the average cost of goods sold decreased by 2.9% compared to the same period last year. Consequently, it resulted in an increase in our gross margin.

Operating expenses for the six months ended June 30, 2019 were RMB28.5 million (US$4.2 million), compared to RMB29.2 million in the same period in 2018, which was RMB0.7 million or 2.4% lower than the same period in 2018. This decrease was mainly due to decreased allowances.

Net loss attributable to the Company during the first half of 2019 was RMB2.4 million (US$0.4 million) compared to net loss attributable to the Company of RMB16.9 million during the same period in 2018, representing a decrease of RMB14.5 million from the same period in 2018 due to the factors described above.

Cash, cash equivalent and restricted cash totaled RMB73.4 million or US$10.7 million as of June 30, 2019. Total shareholders' equity was RMB194.4 million or US$28.3 million.

As of June 30, 2019, the Company had 3,265,837 basic and diluted total ordinary shares outstanding.

Conference Call Information

The Company will host a teleconference on Friday, August 23, 2019, at 9:00 a.m. ET / 9:00 p.m. Beijing time to discuss the financial results. To participate in the call, please dial +1-844-369-8770 in North America, or +1-862-298-0840 internationally, approximately 10 minutes prior to the scheduled start time.

A replay of the call can also be accessed via telephone by calling +1-877-481-4010 in North America, or +1-919-882-2331 internationally, and entering the following Conference ID: 52444. The replay will be available until September 23, 2019, at 9:00 a.m. ET.

About Fuwei Films

Fuwei Films develops, manufactures and distributes high-quality plastic films using the biaxial oriented stretch technique, also known as BOPET film. 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 the significant oversupply of BOPET films resulting from the rapid growth of the Chinese BOPET industry capacity, changes in the international market and trade barriers, especially the uncertainty of the antidumping investigation and imposition of an anti-dumping duty on imports of the BOPET films originating from the People's Republic of China ("China") conducted by certain countries; uncertainty around U.S.-China trade war and its effect on the Company's operation, fluctuations of the RMB exchange rate, 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:

Ms Xiaoli Yu
Investor Relations Officer
Phone: +86-133-615-59266
Email: fuweiIR@fuweifilms.com

In the U.S.:

Mr. Shiwei Yin
Investor Relations
Grayling
Phone: +1-646-284-9474
Email: shiwei.yin@grayling.com

 

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

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF JUNE 30, 2019 AND DECEMBER 31, 2018

(amounts in thousands except share and per share value)

(Unaudited)







June 30,
2019


December 31,
2018


RMB

US$


RMB

ASSETS





Current assets





Cash and cash equivalents

48,429

7,054


8,908

Restricted cash

24,990

3,640


38,000

Accounts and bills receivable, net

23,751

3,460


22,627

Inventories

24,273

3,536


24,675

Advance to suppliers

4,900

714


5,694

Prepayments and other receivables

1,184

172


1,068

Deferred tax assets - current

1,168

170


1,195

Total current assets

128,695

18,746


102,167






Property, plant and equipment, net

310,850

45,280


331,168

Construction in progress

283

41


366

Lease prepayments, net

16,029

2,335


16,296

Advance to suppliers - long term, net

1,542

225


1,542

Deferred tax assets - non current

3,073

448


3,143






Total assets

460,472

67,075


454,682






LIABILITIES AND EQUITY





Current liabilities





Short-term borrowings

64,950

9,461


64,950

Due to related parties 

116,988

17,041


114,692

Accounts payables 

22,441

3,269


20,750

Notes payable

49,980

7,280


48,000

Advance from customers

4,062

592


1,859

Accrued expenses and other payables

5,179

754


5,072

Total current liabilities 

263,600

38,397


255,323






Deferred tax liabilities

2,464

359


2,528






Total liabilities

266,064

38,756


257,851






Equity





Shareholders' equity 





Registered capital (of US$0.519008 par value; 5,000,000 shares authorized; 3,265,837 issued and outstanding) 

13,323

1,941


13,323

Additional paid-in capital

311,907

45,434


311,907

Statutory reserve

37,441

5,454


37,441

Accumulated deficit

(169,102)

(24,632)


(166,680)

Cumulative translation adjustment

839

122


840

Total shareholders' equity

194,408

28,319


196,831

Total equity

194,408

28,319


196,831

Total liabilities and equity

460,472

67,075


454,682

 

 

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

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

FOR THE THREE- AND SIX-MONTH PERIODS ENDED JUNE 30, 2019 AND 2018

(amounts in thousands except share and per share value)

(Unaudited)









The Three-Month Period
Ended June 30, 

The Six-Month Period
Ended June 30,  


2019

2018

2019

2018


RMB

US$

RMB

RMB

US$

RMB

Net sales 

88,117

12,836

79,599

169,191

24,645

156,526

Cost of sales 

69,488

10,122

72,803

138,158

20,125

140,239








Gross profit 

18,629

2,714

6,796

31,033

4,520

16,287








Operating expenses 







Selling expenses 

3,537

515

3,395

6,501

947

6,365

Administrative expenses 

11,453

1,668

9,916

22,030

3,209

22,792

Total operating expenses 

14,990

2,183

13,311

28,531

4,156

29,157








Operating( loss) income  

3,639

531

(6,515)

2,502

364

(12,870)








Other income (expense) 







- Interest income 

202

29

10

416

61

383

- Interest expense 

(2,244)

(327)

(2,257)

(4,435)

(646)

(4,458)

- Others income (expense), net 

(630)

(92)

282

(872)

(127)

45

Total other expenses

(2,672)

(390)

(1,965)

(4,891)

(712)

(4,030)








Income(loss) before provision for income taxes 

967

141

(8,480)

(2,389)

(348)

(16,900)

Income tax benefit (expense) 

(16)

(2)

(176)

(33)

(5)

34








Net (loss)income

951

139

(8,656)

(2,422)

(353)

(16,866)








Net (loss) income attributable to non-controlling interests 

-

-

-

-

-

-

Net income (loss) attributable to the Company 

951

139

(8,656)

(2,422)

(353)

(16,866)

Other comprehensive income (loss) 







- Foreign currency translation adjustments attributable to non-controlling interest

-

-

-

-

-

-

- Foreign currency translation adjustments attributable to the Company

-

-

(36)

(1)

-

(2,077)








Comprehensive loss attributable to non-controlling interest

-

-

-

-

-

-

Comprehensive income(loss )attributable to the Company

951

139

(8,692)

(2,423)

(353)

(18,943)








Earnings (loss) per share, Basic and diluted 

0.29

0.04

(2.65)

(0.74)

(0.11)

(5.16)

Weighted average number ordinary shares, Basic and diluted 

3,265,837

3,265,837

3,265,837

3,265,837

3,265,837

3,265,837

 

 

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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2019 AND 2018

(amounts in thousands except share and per share value)

(Unaudited)







The Six-Month Period Ended June 30,  


2019


2018


RMB

US$


RMB

Cash flow from operating activities





Net loss

(2,422)

(353)


(16,866)

Adjustments to reconcile net loss to net cash





   used in operating activities










    - Depreciation of property, plant and equipment

23,892

3,480


22,127

    - Amortization of intangible assets

267

39


266

    - Deferred income taxes

33

5


(36)

    - Bad debt recovery 

(903)

(132)


(70)

    -Inventory provision

724

105


-

Changes in operating assets and liabilities  





    - Accounts and bills receivable

(222)

(32)


1,541

    - Inventories

(323)

(47)


7,019

    - Advance to suppliers

794

116


(1,356)

    - Prepaid expenses and other current assets

(116)

(17)


(65)

    - Accounts payable

1,692

247


5,463

    - Accrued expenses and other payables

319

46


(27)

    - Advance from customers

2,203

321


1,282

    - Tax payable

(212)

(31)


1,216






Net cash provided by (used in) operating activities

25,726

3,747


20,494






Cash flow from investing activities





Purchases of property, plant and equipment

(3,574)

(521)


124

Restricted cash related to trade finance

-

-


-

Advanced to suppliers - non current 

-

-


28

Amount change in construction in progress

83

12


(2,112)






Net cash provided by (used in) investing activities

(3,491)

(509)


(1,960)






Cash flow from financing activities





Principal payments of bank loans

-

-


-

Proceeds from (payment to) short-term bank loans

-

-


15,000

Proceeds from (payment to) related party 

2,296

335


(38,160)

Change in notes payable

1,980

288


80











Net cash (used in) provided by financing activities

4,276

623


(23,080)






Effect of foreign exchange rate changes 

-

10


(2,067)






Net increase in cash and cash equivalent

26,511

3,871


(6,613)






Cash and cash equivalent





At beginning of period

46,908

6,823


69,464

At end of period

73,419

10,694


62,851






SUPPLEMENTARY DISCLOSURE:





Interest paid

4,435

646


4,458






SUPPLEMENTARY SCHEDULE OF NONCASH INVESTING AND FINANCIAL ACTIVITIES: 



Account payable for plant and equipment: 

1,010

147


1,008

 

Cision View original content:http://www.prnewswire.com/news-releases/fuwei-films-announces-second-quarter-and-first-half-2019-unaudited-financial-results-300905393.html

Source: Fuwei Films (Holdings) Co., Ltd.
Related Stocks:
NASDAQ:FFHL
collection