BEIJING, Aug. 25, 2016 /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,
2016.
Second Quarter 2016 Financial Highlights
- Net sales during the second quarter ended June 30, 2016 were RMB59.3
million or US$8.9
million.
- Sales of specialty films were RMB23.5
million or US$3.5 million or
39.7% of our total revenues.
- Overseas sales were RMB11.2
million or US$1.7 million, or
18.9% of total revenues.
- Our gross profit was RMB5.6
million or US$0.8 million,
representing a gross profit margin of 9.5%.
Mr. Zengyong Wang, Chairman and CEO of Fuwei Films, commented,
"While we continue to face strong competition from emerging and
incumbent players in the marketplace, which has led to oversupply
relative to demand in the marketplace, we are encouraged by
positive trends in the sales of specialty films. We believe our
commitment to innovation and R&D has expanded our end-user
applications that will enable the Company to capitalize on these
opportunities despite challenging industry and economic
conditions."
Financial Highlights For The Three Months Ended June 30, 2016
Net sales during the three months ended June 30, 2016 were RMB59.3
million or US$8.9 million,
compared to RMB66.7 million during
the same period in 2015, representing a decrease of RMB7.4 million or 11.1%, mainly due to a 5.9%
decrease in average sales price and a 5.5% decrease of sales volume
arising from stronger competition in China. The reduction of average sales price
caused a decrease of RMB3.7 million
and the sales volume decrease caused a decrease of RMB3.7 million.
In the three months ended June 30,
2016, sales of specialty films were RMB23.5 million or US$3.5
million or 39.7% of our total revenues as compared to
RMB21.3 million or 31.9% in the same
period of 2015, which was an increase of RMB2.2 million, or 10.3% as compared to the same
period in 2015. The reduction of average sales price caused a
decrease of RMB0.7 million and the
increase in the sales volume caused an increase of RMB2.9 million. The increase was largely
attributable to the increase in sales volume.
Overseas sales were RMB11.2
million or US$1.7 million for
the three months ended June 30, 2016,
or 18.9% of total revenues, compared with RMB15.1 million or 22.7% of total revenues in the
second quarter of 2015. The decrease of average sales price caused
a decrease of RMB1.4 million and the
decrease in sales volume resulted in a decrease of RMB2.5 million.
The following is a breakdown of PRC domestic and overseas sales
(amounts in thousands):
|
|
Three-Month Period
Ended
June 30, 2016
|
% of Total
|
Three-Month Period
Ended
June 30, 2015
|
% of Total
|
|
|
RMB
|
US$
|
RMB
|
Sales in
China
|
|
48,106
|
7,238
|
81.1%
|
51,589
|
77.3%
|
Sales in other
countries
|
|
11,210
|
1,687
|
18.9%
|
15,120
|
22.7%
|
|
|
|
|
|
|
|
|
|
59,316
|
8,925
|
100.0%
|
66,709
|
100.0%
|
Our gross profit was RMB5.6
million or US$0.8 million for
the three months ended June 30, 2016,
representing a gross margin of 9.5%, as compared to a gross margin
of 0.4% for the same period in 2015. Correspondingly, gross margin
increased by 9.1 percentage points compared to the same period in
2015. Our average product sales prices decreased by 5.9% compared
to the same period last year while the average cost of goods sold
decreased by 14.4% compared to the same period last year.
Consequently, the amount of decrease in cost of goods sold was
larger than that in sales revenue during the three months ended
June 30, 2016 compared with the same
period in 2015, which resulted in an increase in our gross
profit.
Operating expenses for the three months ended June 30, 2016 were RMB14.5
million or US$2.2 million, as
compared to RMB13.0 million for the
same period in 2015, which was RMB1.5
million, or 11.5% higher than the same period in 2015. This
increase was mainly due to depreciation charged to general and
administrative expenses in the accounting period in which they are
incurred as a result of lack of manufacturing from the third
production line since April 2015 and
increased allowance for the doubtful accounts receivable.
Net loss attributable to the Company during the three months
ended June 30, 2016 was RMB10.2 million or US$1.5
million compared to RMB14.7
million during the same period in 2015, representing a
decrease of RMB4.5 million for the
same period in 2015.
Basic and diluted net loss per share was RMB0.78 or US$0.12
and RMB1.12 for the three-month
period ended June 30, 2016 and 2015,
respectively.
Total shareholders' equity was RMB297.37
million or US$44.75 million as
of June 30, 2016, compared with
RMB319.7 million as of December 31, 2015.
As of June 30, 2016, the Company
had 13,062,500 basic and diluted total ordinary shares
outstanding.
Financial Highlights for the Six Months Ended June 30, 2016
Net sales during the six months ended June 30, 2016 were RMB121.5 million or US$18.3 million, compared to RMB119.5 million in the same period in 2015,
representing an increase of RMB2.0
million or 1.7%, mainly due to the increased sales
volume.
In the six months ended June 30,
2016, sales of specialty films were RMB45.3 million or US$6.8
million or 37.3% of our total revenues as compared to
RMB36.3 million or 30.4% in the same
period of 2015, which was an increase of RMB9.0 million, or 24.8% as compared to the same
period in 2015. The reduction in average sales price caused a
decrease of RMB2.0 million and the
increase in the sales volume caused an increase of RMB11.0 million.
Overseas sales during the six months ended June 30, 2016 were RMB23.7
million or US$3.6 million, or
19.5% of total revenues, compared with RMB28.2 million or 23.6% of total revenues in the
same period in 2015. This was RMB4.5
million lower than the same period in 2015. The decrease in
average sales price and sales volume caused a decrease of
RMB2.1 million and RMB2.4 million, respectively.
Our gross profit was RMB11.2
million or US$1.7 million for
the six months ended June 30, 2016,
representing a gross margin of 9.2%, as compared to a gross margin
of (6.3)% for the same period in 2015. Correspondingly, gross
margin increased by 15.5 percentage points. Compared to the same
period last year, our average product sales prices decreased by
4.2% while the average cost of goods sold decreased by 18.2%.
Consequently, the amount of decrease in cost of goods sold was
larger than that in sales revenue during the six months ended
June 30, 2016 compared with the same
period in 2015, which resulted in an increase in our gross
margin.
Operating expenses for the six months ended June 30, 2016 were RMB29.5
million or US$4.4 million,
compared to RMB21.8 million in the
same period in 2015, which was RMB7.7
million or 35.3% higher. This increase is mainly due to
depreciation charged to general and administrative expenses in the
accounting period as a result of lack of manufacturing from the
third production line since April
2015 and increased allowance for doubtful accounts
receivable.
Net loss attributable to the Company during the six months ended
June 30, 2016 was RMB22.3 million or US$3.3
million compared to RMB29.6
million during the same period in 2015, representing a
decrease of RMB7.3 million due to the
factors described above.
Conference Call Information
The Company will host a teleconference on Friday, August 26, 2016, 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 +1-877-481-4010 in North
America, or +1-919-882-2331 internationally, and entering
the following reply ID: 10078. The replay will be available until
September 26, 2016, 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 trends affecting the
global economy, including the devaluation of the RMB by
China in August 2016; 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:
Ms. Xiaoli Yu
Investor Relations Officer
Phone: +86-133-615-59266
Email: fuweiIR@fuweifilms.com
In the U.S.:
Ms. Vivian Chen
Investor Relations
Grayling
Phone: +1-646-284-9427
Email: vivian.chen@grayling.com
Financial Tables to Follow
FUWEI FILMS
(HOLDINGS) CO., LTD. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30,
2016 AND DECEMBER 31, 2015
(amounts in thousands
except share and per share value)
(Unaudited)
|
|
|
June 30,
2016
|
|
December 31,
2015
|
|
RMB
|
US$
|
|
RMB
|
ASSETS
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
8,446
|
1,271
|
|
14,355
|
Restricted
cash
|
|
52,568
|
7,910
|
|
43,215
|
Accounts and bills
receivable, net
|
|
20,925
|
3,149
|
|
10,046
|
Inventories
|
|
27,930
|
4,203
|
|
29,574
|
Advance to
suppliers
|
|
8,340
|
1,255
|
|
5,640
|
Prepayments and other
receivables
|
|
10,288
|
1,548
|
|
20,334
|
Deferred tax assets -
current
|
|
1,931
|
291
|
|
1,438
|
Total current
assets
|
|
130,428
|
19,627
|
|
124,602
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
423,987
|
63,797
|
|
431,021
|
Construction in
progress
|
|
3,196
|
481
|
|
1,700
|
Lease prepayments,
net
|
|
17,620
|
2,651
|
|
17,882
|
Advance to suppliers
- long term, net
|
|
1,706
|
257
|
|
1,440
|
Other
Assets
|
|
-
|
-
|
|
11,607
|
Deferred tax assets -
non current
|
|
15,401
|
2,317
|
|
15,519
|
|
|
|
|
|
|
Total
assets
|
|
592,338
|
89,130
|
|
603,771
|
LIABILITIES AND
EQUITY
|
Current
liabilities
|
|
|
|
|
|
Long-term loan,
current portion
|
|
3,350
|
504
|
|
3,350
|
Due to related
parties
|
|
146,247
|
22,006
|
|
143,080
|
Accounts
payables
|
|
32,419
|
4,878
|
|
32,760
|
Notes
payable
|
|
97,230
|
14,630
|
|
85,780
|
Advance from
customers
|
|
1,939
|
292
|
|
2,247
|
Accrued expenses and
other payables
|
7,717
|
1,161
|
|
8,682
|
Obligations under
capital leases-current
|
|
-
|
-
|
|
302
|
Total current
liabilities
|
|
288,902
|
43,471
|
|
276,201
|
|
|
|
|
|
|
Long-term
loan
|
|
1,625
|
245
|
|
3,300
|
Deferred tax
liabilities
|
|
5,299
|
797
|
|
5,406
|
|
|
|
|
|
|
Total
liabilities
|
|
295,826
|
44,513
|
|
284,907
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Registered capital(of
US$0.129752 par value; 20,000,000 shares authorized; 13,062,500
issued and outstanding)
|
|
13,323
|
2,005
|
|
13,323
|
Additional paid-in
capital
|
|
311,907
|
46,932
|
|
311,907
|
Statutory
reserve
|
|
37,441
|
5,634
|
|
37,441
|
(Accumulated deficit)
retained earnings
|
|
(66,274)
|
(9,972)
|
|
(44,022)
|
Cumulative
translation adjustment
|
|
970
|
147
|
|
1,049
|
Total
shareholders' equity
|
|
297,367
|
44,746
|
|
319,698
|
Non-controlling
interest
|
|
(855)
|
(129)
|
|
(834)
|
Total
equity
|
|
296,512
|
44,617
|
|
318,864
|
Total liabilities
and equity
|
|
592,338
|
89,130
|
|
603,771
|
FUWEI FILMS
(HOLDINGS) CO., LTD. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
FOR THE THREE- AND
SIX-MONTH PERIODS ENDED JUNE 30, 2016 AND 2015
|
(amounts in thousands
except share and per share value)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
The Three-Month
Period Ended June 30,
|
|
The Six-Month
Period Ended June 30,
|
|
2016
|
2015
|
|
2016
|
2015
|
|
RMB
|
US$
|
RMB
|
|
RMB
|
US$
|
RMB
|
Net
sales
|
59,316
|
8,925
|
66,709
|
|
121,463
|
18,276
|
119,485
|
Cost of
sales
|
53,690
|
8,079
|
66,422
|
|
110,248
|
16,589
|
127,023
|
|
|
|
|
|
|
|
|
Gross margin
(loss)
|
5,626
|
846
|
287
|
|
11,215
|
1,687
|
(7,538)
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Selling
expenses
|
3,340
|
503
|
3,157
|
|
6,289
|
946
|
6,353
|
Administrative
expenses
|
11,149
|
1,678
|
9,877
|
|
23,197
|
3,490
|
15,490
|
Total operating
expenses
|
14,489
|
2,181
|
13,034
|
|
29,486
|
4,436
|
21,843
|
|
|
|
|
|
|
|
|
Operating
loss
|
(8,863)
|
(1,335)
|
(12,747)
|
|
(18,271)
|
(2,749)
|
(29,381)
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
- Interest
income
|
134
|
20
|
218
|
|
352
|
53
|
738
|
- Interest
expense
|
(1,707)
|
(257)
|
(2,082)
|
|
(3,461)
|
(521)
|
(4,413)
|
- Others income
(expense), net
|
175
|
26
|
(32)
|
|
(1,354)
|
(204)
|
4,452
|
|
|
|
|
|
|
|
|
Total other income
(expense)
|
(1,398)
|
(211)
|
(1,896)
|
|
(4,463)
|
(672)
|
777
|
|
|
|
|
|
|
|
|
Loss before provision
for income taxes
|
(10,261)
|
(1,546)
|
(14,643)
|
|
(22,734)
|
(3,421)
|
(28,604)
|
Income tax benefit
(expense)
|
64
|
10
|
(8)
|
|
482
|
73
|
(1,044)
|
|
|
|
|
|
|
|
|
Net loss
|
(10,197)
|
(1,536)
|
(14,651)
|
|
(22,252)
|
(3,348)
|
(29,648)
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to non-controlling interests
|
-
|
-
|
-
|
|
-
|
-
|
-
|
Net loss attributable
to the Company
|
(10,197)
|
(1,536)
|
(14,651)
|
|
(22,252)
|
(3,348)
|
(29,648)
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
- Foreign currency
translation adjustments attributable to non-controlling
interest
|
(25)
|
(4)
|
-
|
|
(21)
|
(3)
|
-
|
- Foreign currency
translation adjustments attributable to the Company
|
(74)
|
(11)
|
(25)
|
|
(79)
|
(12)
|
(49)
|
|
|
|
|
|
|
|
|
Comprehensive loss
attributable to non-controlling interest
|
(25)
|
(4)
|
-
|
|
(21)
|
(3)
|
-
|
Comprehensive loss
attributable to the Company
|
(10,271)
|
(1,547)
|
(14,676)
|
|
(22,331)
|
(3,360)
|
(29,697)
|
|
|
|
|
|
|
|
|
Loss per share,
Basic and diluted
|
(0.78)
|
(0.12)
|
(1.12)
|
|
(1.70)
|
(0.26)
|
(2.27)
|
Weighted average
number ordinary shares,
Basic and diluted
|
13,062,500
|
13,062,500
|
13,062,500
|
|
13,062,500
|
13,062,500
|
13,062,500
|
FUWEI FILMS
(HOLDINGS) CO., LTD. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX-MONTH
PERIODS ENDED JUNE 30, 2016 AND 2015
(amounts in thousands
except share and per share value)
(Unaudited)
|
|
|
The Six-Month
Period Ended June 30,
|
|
|
2016
|
|
2015
|
|
|
RMB
|
US$
|
|
RMB
|
Cash flow from
operating activities
|
|
|
|
|
|
Net loss
|
|
(22,252)
|
(3,348)
|
|
(29,648)
|
Adjustments to
reconcile net loss to net cash
|
|
|
|
|
|
used in operating
activities
|
|
|
|
|
|
|
|
|
|
|
|
- Depreciation of
property, plant and equipment
|
|
21,364
|
3,215
|
|
23,076
|
- Amortization of
intangible assets
|
|
261
|
39
|
|
262
|
- Deferred income
taxes
|
|
(482)
|
(73)
|
|
1,044
|
- Bad debt recovery
(expense)
|
|
2,197
|
331
|
|
(4,135)
|
-Inventory
provision
|
|
(226)
|
(34)
|
|
-
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
- Accounts and bills
receivable
|
|
(13,076)
|
(1,968)
|
|
(6,634)
|
-
Inventories
|
|
1,869
|
281
|
|
(4,210)
|
- Advance to
suppliers
|
|
(2,699)
|
(406)
|
|
2,518
|
- Prepaid expenses and
other current assets
|
|
72
|
11
|
|
12
|
- Accounts
payable
|
|
(341)
|
(51)
|
|
(2,439)
|
- Accrued expenses and
other payables
|
|
(1,045)
|
(157)
|
|
1,377
|
- Advance from
customers
|
|
(308)
|
(46)
|
|
2,844
|
- Tax
payable
|
|
9,974
|
1,501
|
|
(1,499)
|
|
|
|
|
|
|
Net cash used in
operating activities
|
|
(4,692)
|
(705)
|
|
(17,432)
|
|
|
|
|
|
|
Cash flow from
investing activities
|
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(2,722)
|
(410)
|
|
(91)
|
Restricted cash
related to trade finance
|
|
(9,344)
|
(1,406)
|
|
5,865
|
Advanced to suppliers
- non current
|
|
(266)
|
(40)
|
|
(550)
|
Amount change in
construction in progress
|
|
(1,496)
|
(225)
|
|
(730)
|
Return of long-term
deposit
|
|
-
|
-
|
|
21,000
|
|
|
|
|
|
|
Net cash provided by
(used in) investing activities
|
|
(13,828)
|
(2,081)
|
|
25,494
|
|
|
|
|
|
|
Cash flow from
financing activities
|
|
|
|
|
|
Principal payments of
bank loans
|
|
(1,675)
|
(252)
|
|
(1,675)
|
|
|
|
|
|
|
Proceeds from related
party
|
|
3,167
|
477
|
|
13,796
|
Payment of capital
lease obligation
|
|
(302)
|
(45)
|
|
(4,366)
|
Change in notes
payable
|
|
11,450
|
1,723
|
|
(13,913)
|
|
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
|
12,640
|
1,903
|
|
(6,158)
|
|
|
|
|
|
|
Effect of foreign
exchange rate changes
|
|
(29)
|
(62)
|
|
(53)
|
|
|
|
|
|
|
Net decrease (
increase) in cash and cash equivalent
|
|
(5,909)
|
(945)
|
|
1,851
|
|
|
|
|
|
|
Cash and cash
equivalent
|
|
|
|
|
|
At beginning of
period
|
|
14,355
|
2,216
|
|
9,020
|
At end of
period
|
|
8,446
|
1,271
|
|
10,871
|
|
|
|
|
|
|
SUPPLEMENTARY
DISCLOSURE:
|
|
|
|
|
|
Interest
paid
|
|
3,461
|
521
|
|
4,413
|
Income tax
paid
|
|
-
|
-
|
|
-
|
|
|
|
|
|
|
SUPPLEMENTARY
SCHEDULE OF NONCASH INVESTING AND FINANCIAL
ACTIVITIES:
|
Account payable for
plant and equipment:
|
|
2,354
|
354
|
|
2,215
|
Obligations for
acquired equipment under capital lease:
|
|
-
|
-
|
|
4,196
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/fuwei-films-announces-second-quarter-and-first-half-2016-unaudited-financial-results-300318407.html
SOURCE Fuwei Films (Holdings) Co., Ltd.