Welcome!

.NET Authors: Srinivasan Sundara Rajan, Adine Deford, Greg Ness, David Fletcher, Pat Romanski

News Feed Item

Fuwei Films Announces Its Unaudited Financial Results for the Third Quarter of 2012

- Teleconference to be Held on Wednesday, November 28, 2012 at 8:00 am EST -

BEIJING, Nov. 27, 2012 /PRNewswire-FirstCall/ -- 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 third quarter of 2012 ended September 30, 2012.

Highlights

  • Net sales for the third quarter were RMB88.8 million (US$14.1 million), compared with RMB117.0 million in the same period of 2011.
  • Net loss attributable to the Company for the third quarter was RMB14.9 million (US$2.4 million), compared with net loss attributable to the Company of RMB4.9 million in the same period of 2011.
  • Net cash provided by operating activities during the first nine months was RMB104.7 million (US$16.7 million), compared with net cash provided by operating activities RMB17.1 million in the same period of 2011.
  • Basic and diluted net loss per share for the third quarter was RMB1.14 (US$0.18), compared with basic and diluted net loss per share of RMB0.38 in the same period of 2011.

Mr. Xiaoan He, Chairman and CEO of the Company, said, "We have made significant progress in the construction of our third production line for thick films despite the current market condition. If all goes as planned, we expect to start trial operations of the line by the end of the year or early next year. We have started the R&D for our thick films to be manufactured by this production line including high performance electric insulation film, base film for solar backsheet and TFT-LCD optical films. In addition, we have started marketing these products and contacting target clients."

Third quarter of 2012 Results

Revenues for the third quarter ended September 30, 2012 were RMB88.8 million (US$14.1 million), compared with RMB117.0 million in the same period of 2011, which was a decrease of RMB28.2 million, or 24.1% compared with the third quarter of 2011. The decrease in sales was mainly due to the significant decrease in sales prices compared to the same period in 2011 arising from stronger competition attributing to increased capacity in China and overseas.

Overseas sales during the third quarter ended September 30, 2012 were RMB19.5 million (US$3.1 million,) or 22.0% of total revenues, compared with RMB22.4 million or 19.2% of total revenues in the same period of 2011. The decrease in overseas sales was mainly due to the decrease in sales prices compared with the same period last year. With respect to the percentage of total sales, overseas sales increased due to increased marketing efforts.

The following is a breakdown of domestic versus overseas sales for the three-month periods ended September 30, 2012 and 2011 (amounts in thousands):



Three-Month Period Ended



September 30, 2012

% of Total

September 30, 2011

% of Total



RMB

US$

RMB

Sales in China


69,240

11,017

78.0%

94,533

80.8%

Sales in other countries


19,521

3,106

22.0%

22,430

19.2%








Total


88,761

14,123

100.0%

116,963

100.0%

Gross profit was RMB0.9 million (US$0.1 million) for the third quarter of 2012, compared with RMB10.4 million in the same period of 2011. Gross margin was 1.0%, compared with 8.9% in the third quarter of 2011. This was mainly due to the decrease in sales price exceeding those in raw material during the third quarter ended September 30, 2012 compared with the same period in 2011.

Operating expenses for the three months ended September 30, 2012 was RMB13.4 million (US$2.1 million), compared with RMB14.0 million in the third quarter of 2011, which was RMB0.6 million, or 4.3% lower than the same period in 2011.

Operating loss for the third quarter of 2012 was RMB12.5 million (US$2.0 million), compared with operating loss of RMB3.7 million in the same period of 2011.

Net loss attributable to the Company for the third quarter of 2012 was RMB14.9 million (US$2.4 million), compared with net loss attributable to the Company of RMB4.9 million in the third quarter of 2011.

Basic and diluted net loss per share was RMB1.14 (US$0.18), compared with basic and diluted net loss per share of RMB0.38 in the third quarter of 2011.

Total shareholders' equity was RMB531.8 million (US$84.6 million) as of September 30, 2012, compared with RMB573.7 million as of December 31, 2011.

As of September 30, 2012, the Company had 13,062,500 basic and diluted total ordinary shares outstanding.

Conference Call Information

The Company will host a teleconference on Wednesday, November 28, 2012, at 8:00 a.m. EST / 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 +1-877-660-6853 in North America, or +1-201-612-7415 internationally, and entering the following Conference ID: 404179. The replay will be available until December 28, 2012, at 11:59 p.m. EST.

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 Films' 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 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 including complaints and claims from clients; 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:

Miss Lysander Lee
Investor Relations Officer
Phone: +86 133 615 59266
Email: [email protected]

In the U.S.:

Ms Leslie Wolf-Creutzfeldt
Investor Relations
Grayling
Phone: +1-646-284-9472
Email: [email protected]

 

Financial Tables to Follow

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

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF SEPTEMBER 30, 2012 AND DECEMBER 31, 2011

(amounts in thousands except share and per share value)

(Unaudited)




September 30, 2012


December 31, 2011


RMB

US$


RMB

ASSETS






Current assets






Cash and cash equivalents


15,767

2,509


44,172

Restricted cash


49,168

7,823


102,212

Accounts and bills receivable, net


17,859

2,842


52,457

Inventories


39,911

6,350


41,774

Advance to suppliers


17,994

2,863


8,808

Prepayments and other receivables


22,423

3,568


31,172

Deferred tax assets - current


1,274

203


1,309

Total current assets


164,396

26,158


281,904







Plant, properties and equipment, net


245,772

39,106


277,119

Construction in progress


277,320

44,126


119,647

Lease prepayments, net


19,654

3,127


20,047

Advance to suppliers - long term


37,542

5,973


62,799

Goodwill


10,276

1,635


10,276

Long-term deposit


16,760

2,667


16,760

Deferred tax assets - non current


1,516

241


1,622







Total assets


773,236

123,033


790,174







LIABILITIES AND EQUITY






Current liabilities






Short-term borrowings


120,000

19,094


168,501

Accounts payables


22,427

3,568


19,317

Notes payable


62,459

9,938


-

Advance from customers


18,884

3,005


11,876

Accrued expenses and other payables


6,717

1,069


5,798

Total current liabilities


230,487

36,674


205,492







Long-term loan


10,000

1,591


10,000

Deferred tax liabilities


1,803

287


1,811







Total liabilities


242,290

38,552


217,303







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

2,120


13,323

Additional paid-in capital


311,907

49,629


311,907

Statutory reserve


37,441

5,957


37,441

Retained earnings


167,868

26,710


209,768

Cumulative translation adjustment


1,213

193


1,230

Total shareholders' equity


531,752

84,609


573,669

Non-controlling interest


(806)

(128)


(798)

Total equity


530,946

84,481


572,871

Total liabilities and equity


773,236

123,033


790,174

 

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

FOR THE THREE- AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2012 AND 2011

(amounts in thousands except share and per share value)

(Unaudited)




The Three-Month Period Ended September 30,


The Nine-Month Period Ended September 30, 



2012


2011


2012


2011


RMB

US$


RMB


RMB

US$


RMB

Net sales


88,761

14,123


116,963


272,196

43,310


428,433

Cost of sales


87,895

13,985


106,596


272,475

43,355


350,403












Gross margin


866

138


10,367


(279)

(45)


78,030












Operating expenses











Selling expenses


4,561

726


5,097


13,325

2,120


14,136

Administrative expenses


8,801

1,400


8,946


22,618

3,599


27,824

Total operating expenses


13,362

2,126


14,043


35,943

5,719


41,960












Operating (loss) income


(12,496)

(1,988)


(3,676)


(36,222)

(5,764)


36,070












Other income (expense)











- Interest income


83

13


358


2,592

412


1,435

- Interest (expense)


(2,564)

(408)


(2,736)


(8,621)

(1,372)


(7,462)

- Other income (expense), net


126

20


543


475

76


307












Total other income (expense)


(2,355)

(375)


(1,835)


(5,554)

(884)


(5,720)












(Loss)/income before provision for income taxes


(14,851)

(2,363)


(5,511)


(41,776)

(6,648)


30,350












Provision for income tax (expense)/benefit


(12)

(2)


597


(133)

(21)


(5,507)












Net (loss) income


(14,863)

(2,365)


(4,914)


(41,909)

(6,669)


24,843












Net (loss) income attributable to
non-controlling interests


(7)

(1)


(12)


(9)

(1)


(21)

Net income (loss) attributable to
the Company


(14,856)

(2,364)


(4,902)


(41,900)

(6,668)


24,864












Other comprehensive income











- Foreign currency translation adjustments attributable to non-controlling interest


9

1


27


1

0


44

- Foreign currency translation adjustments attributable to the Company


9

1


30


(17)

(3)


35












Comprehensive income (loss) attributable to non-controlling interest


2

0


15


(8)

(1)


23

Comprehensive (loss) income attribute to the Company


(14,847)

(2,363)


(4,872)


(41,917)

(6,671)


24,899












Earnings (loss) per share, Basic and diluted


(1.14)

(0.18)


(0.38)


(3.21)

(0.51)


1.90

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 NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2012 AND 2011

(amounts in thousands except share and per share value)

(Unaudited)




The Nine-Month Period Ended September 30,



2012


2011



RMB

US$


RMB

Cash flow from operating activities






Net (loss) income


(41,909)

(6,668)


24,843

Adjustments to reconcile net income to net cash






(used in)provided by operating activities






- Loss/(gain) on disposal of property, plant and equipment


(35)

(6)


-

- Depreciation of property, plant and equipment


36,537

5,814


31,013

- Amortization of intangible assets


340

54


340

- Deferred income taxes


133

21


726

- Bad debt (recovery) expense


(236)

(38)


(5,690)

Changes in operating assets and liabilities






- Accounts and bills receivable


35,040

5,575


(16,983)

- Inventories


1,863

296


4,853

- Advance to suppliers


(9,186)

(1,462)


4,161

- Prepaid expenses and other current assets


28,216

4,490


5,372

- Accounts payable


3,210

511


525

- Accrued expenses and other payables


653

115


(7,348)

- Note payable


62,459

9,938



- Advance from customers


7,009

1,115


(18,816)

- Tax payable


(19,399)

(3,087)


(5,911)







Net cash provided by operating activities


104,695

16,668


17,085







Cash flow from investing activities






Purchases of property, plant and equipment


(5,452)

(867)


(33,629)

Restricted cash related to trade finance


53,043

8,440


(98,134)

Advanced to suppliers - non current


25,257

4,019


(1,993)

Amount change in construction in progress


(157,673)

(25,088)


20,470

Proceeds from sale of property, plant and equipment


250

40


-







Net cash used in investing activities


(84,575)

(13,456)


(113,286)







Cash flow from financing activities






Principal payments of short-term bank loans


(168,501)

(26,811)


(7,000)

Proceeds from short-term bank loans


120,000

19,094


18,501







Net cash (used in) provided by financing activities


(48,501)

(7,717)


11,501







Effect of foreign exchange rate changes


(24)

(4)


(173)







Net decrease in cash and cash equivalent


(28,405)

(4,509)


(84,873)







Cash and cash equivalent






At beginning of period/year


44,172

7,018


171,227

At end of period/year


15,767

2,509


86,354







SUPPLEMENTARY DISCLOSURE:






Interest paid


8,621

1,372


7,462

Income tax paid


-

-


9,654







SUPPLEMENTARY SCHEDULE OF NONCASH INVESTING AND FINANCIAL ACTIVITIES:

During the period ended September 30, 2012, the Company acquired equipment by incurring accounts payable in the
amount of:


3,834

610


-

SOURCE Fuwei Films (Holdings) Co., Ltd.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Nigeria has the largest economy in Africa, at more than US$500 billion, and ranks 23rd in the world. A recent re-evaluation of Nigeria's true economic size doubled the previous estimate, and brought it well ahead of South Africa, which is a member (unlike Nigeria) of the G20 club for political as well as economic reasons. Nigeria's economy can be said to be quite diverse from one point of view, but heavily dependent on oil and gas at the same time. Oil and natural gas account for about 15% of Nigera's overall economy, but traditionally represent more than 90% of the country's exports and as...
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
"At our booth we are showing how to provide trust in the Internet of Things. Trust is where everything starts to become secure and trustworthy. Now with the scaling of the Internet of Things it becomes an interesting question – I've heard numbers from 200 billion devices next year up to a trillion in the next 10 to 15 years," explained Johannes Lintzen, Vice President of Sales at Utimaco, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"For over 25 years we have been working with a lot of enterprise customers and we have seen how companies create applications. And now that we have moved to cloud computing, mobile, social and the Internet of Things, we see that the market needs a new way of creating applications," stated Jesse Shiah, CEO, President and Co-Founder of AgilePoint Inc., in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Code Halos - aka "digital fingerprints" - are the key organizing principle to understand a) how dumb things become smart and b) how to monetize this dynamic. In his session at @ThingsExpo, Robert Brown, AVP, Center for the Future of Work at Cognizant Technology Solutions, outlined research, analysis and recommendations from his recently published book on this phenomena on the way leading edge organizations like GE and Disney are unlocking the Internet of Things opportunity and what steps your organization should be taking to position itself for the next platform of digital competition.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at @ThingsExpo, Andrew Bolwell, Director of Innovation for HP's Printing and Personal Systems Group, discussed how key attributes of mobile technology – touch input, sensors, social, and ...