Top-Thema

09:20 Uhr -0,01%
Aktien Frankfurt Eröffnung: Dax tritt nach starkem Wochenstart auf der Stelle

Fuwei Films Announces Its Unaudited Financial Results for the Third Quarter of 2016

Montag, 28.11.2016 22:05 von

PR Newswire

BEIJING, Nov. 28, 2016 /PRNewswire/ --

-Teleconference to be Held on Tuesday, November 29, 2016 at 8:00 am EST-

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 and nine months ended September 30, 2016.

Highlights

  • Net sales during the third quarter ended September 30, 2016 were RMB61.6 million or US$9.2 million.
  • In the third quarter of 2016, sales of specialty films were RMB22.7 million or US$3.4 million or 36.8% of our total revenues as compared to RMB18.7 million or28.5% in the same period of 2015, which was an increase of RMB4.0 million.
  • Our gross profit was RMB1.1 million or US$0.2 million for the third quarter ended September 30, 2016, representing a gross profit rate of 1.7%.
  • Basic and diluted net loss per share was RMB1.03 or US$0.15 and RMB0.94 for the three-month period ended September 30, 2016 and 2015, respectively.

On November 22, 2016, a majority of the shareholders of the Company approve, in principal, a 1-for-4 reverse stock split of the Company's authorized ordinary shares, accompanied by a corresponding decrease in the Company's issued and outstanding ordinary shares and an increase of the par value of each ordinary share from $0.129752 to $US$0.519008, subject to an extraordinary meeting of shareholders to be held on December 5, 2016.

Third Quarter 2016 Results

Net sales during the third quarter ended September 30, 2016 were RMB61.6 million or US$9.2 million, compared to RMB65.7 million during the same period in 2015, representing a decrease of RMB4.1 million or 6.2%, mainly due to the reduction of average sales price by 5.9% arising from stronger competition in China and large reduction in prices of main raw materials. The reduction of average sales price caused a decrease of RMB3.8 million and the sales volume decrease caused a decrease of RMB0.3 million.

In the third quarter of 2016, sales of specialty films were RMB22.7 million or US$3.4 million or 36.8% of our total revenues as compared to RMB18.7 million or 28.5% in the same period of 2015, which was an increase of RMB4.0 million, or 21.4% as compared to the same period in 2015. The reduction in average sales price caused a decrease of RMB0.2 million and the increase in the sales volume caused an increase of RMB4.2 million.

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


Three-Month Period Ended
September 30, 2016

% of 
Total


Three-Month Period Ended
September 30, 2015

% of 
Total


RMB

US$



RMB


Stamping and transfer film

23,715

3,555

38.4%


26,156

39.8%

Printing film

7,173

1,076

11.7%


8,196

12.5%

Metallization film

1,634

245

2.7%


3,624

5.5%

Specialty film

22,666

3,399

36.8%


18,710

28.5%

Base film for other application

6,373

956

10.4%


8,984

13.7%









61,560

9,231

100.0%


65,670

100.0%

Overseas sales were RMB11.4 million or US$1.7 million, or 18.4% of total revenues, compared with RMB16.1 million or 24.5% of total revenues in the third quarter of 2015. This is a decrease of RMB4.7 million. The decrease in average sales price caused a decrease of RMB1.4 million and the decrease in sales volume resulted in a decrease of RMB3.3 million.

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



Three-Month Period Ended
September 30, 2016

% of 
Total

Three-Month Period Ended
September 30, 2015

% of 
Total



RMB

US$


RMB


Sales in China


50,205

7,528

81.6%

49,568

75.5%

Sales in other
countries


11,355

1,703

18.4%

16,102

24.5%










61,560

9,231

100.0%

65,670

100.0%

Our gross profit was RMB1.1 million or US$0.2 million for the third quarter ended September 30, 2016, representing a gross profit rate of 1.7%, as compared to a gross profit rate of 5.8% for the same period in 2015. Correspondingly, gross profit rate decreased by 4.1 percent compared to the same period in 2015 mainly due to the reduction of average sales price.

Operating expenses for the third quarter ended September 30, 2016 were RMB12.7 million or US$1.9 million, which was RMB1.8 million, or 12.4% lower than the same period in 2015. This decrease was mainly due to decreased expenses on research and development.

Net loss attributable to the Company during the third quarter ended September 30, 2016 was RMB13.4 million or US$2.0 million compared to net loss attributable to the Company of RMB12.3 million during the same period in 2015, representing an increase in loss of RMB1.1 million compared with the same period in 2015.

Basic and diluted net loss per share was RMB1.03 or US$0.15and RMB0.94 for the three-month period ended September 30, 2016and 2015, respectively.

Total shareholders' equity was RMB283.9million or US$42.6million as of September 30, 2016, compared with RMB319.7million as of December 31, 2015.

As of September 30, 2016, the Company had 13,062,500 basic and diluted total ordinary shares outstanding.

Nine Months 2016 Results

Net sales during the nine-month period ended September 30, 2016 were RMB183.0 million or US$27.4 million, compared to RMB185.2 million, during the same period in 2015, representing a decrease of RMB2.2 million or 1.2%, mainly due to the reduction of average sales price by 4.8% arising from stronger competition in China together with a reduction in prices of main raw materials.

In the nine-month period ended September 30, 2016, sales of specialty films were RMB68.0 million or US$10.2 million or 37.1% of our total revenues as compared to RMB55.0 million or 29.7% in the same period of 2015, which was an increase of RMB13.0 million, or 23.6%as compared to the same period in 2015. The reduction of average sales price caused a decrease of RMB2.3 million and the increase in the sales volume caused an increase of RMB15.3 million.

Overseas sales during the nine months ended September 30, 2016 were RMB35.1 million or US$5.3 million, or 19.2% of total revenues, compared with RMB44.3 million or 23.9% of total revenues in the same period in 2015. This was RMB9.2 million lower than the same period in 2015. The reduction in sales volume resulted in a decrease of RMB5.7 million and the decrease of average sales price caused a decrease of RMB3.5 million.

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



Nine-Month Period Ended
September 30, 2016

% of 
Total

Nine-Month Period Ended
September 30, 2015

% of 
Total



RMB

US$


RMB


Sales in China


147,944

22,185

80.8%

140,853

76.1%

Sales in other countries


35,079

5,261

19.2%

44,302

23.9%










183,023

27,446

100.0%

185,155

100.0%

Our gross profit was RMB12.3 million or US$1.8 million for the first nine months ended September 30, 2016, representing a gross profit rate of 6.7%, as compared to a gross loss rate of 2.0% for the same period in 2015. Correspondingly, gross profit rate increased by 8.7 percentage points. Our average product sales prices decreased by 4.8% compared to the same period last year while the average cost of goods sold decreased by 12.9% compared to the same period last year. Consequently, the amount of decrease in cost of goods sold was higher than that in sales revenue during the nine months ended September 30, 2016 compared with the same period in 2015, which resulted in an increase in our gross profit.

Operating expenses for the nine months ended September 30, 2016 were RMB42.2 million or US$6.3 million, compared to RMB36.4 million in the same period in 2015, which was RMB5.8 million or 15.9% higher than the same period in 2015. This increase is 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 doubtful accounts receivable.

On November 23, 2016, we announced receipt of a letter from Nasdaq Stock Market stating that since we have not regained compliance with Listing Rule 5550(a)(2) regarding our bid price, our ordinary shares will be delisted from the Nasdaq Capital Market. The letter further stated that unless we request an appeal of the staff's determination, trading of our ordinary shares will be suspended at the opening of business on December 1, 2016. We have appealed the staff's determination to a Hearing Panel (the "Panel")." A hearing request will stay the suspension of our ordinary shares pending the Panel's decision.

Conference Call Information

The Company will host a teleconference on Tuesday, November 29, 2016, 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 +1-877-481-4010 in North America, or +1-919-882-2331 internationally, and entering the following Conference ID: 10160. The replay will be available until December 29, 2016, 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'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; significant competition in the BOPET film industry, especially 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 adverse impact 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 main importing countries; fluctuations of RMB exchange rate, the reduce in demand for the Company's products or the loss of main customers which may result in the decrease of sales, and negatively influencing the Company's financial performance, uncertainty as to the future profitability, uncertainty as to the Company's ability to successfully obtain additional funds to meet the working capital needs of the new BOPET production line, uncertainty as to the Company's ability to continuously develop new BOPET film products to be produced by the third production line and keep up with changes in BOPET film technology, risks associated with possible defects and errors in its products including complaints and claims from clients, 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 light of the volatility in the prices of petroleum products in recent years, instability of power and energy supply, and the uncertainty regarding the future operation of the Company in connection with the changes in the labor law in China, the measures taken by the Chinese government to save energy and reduce emissions, and the complaints from nearby residents and local government about the noise caused by our production as well as the uncertainty of the impact of major shareholder transfer that have substantial influence over the Company and the Company's business operation including possible overlap of our BOPET products, customers and market orientation with an BOPET film manufacturer, which is controlled by the same individual who has control over the shares of our major shareholder. 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
CitigateDeweRogerson
Phone: +1-646-284-9427
Email: vivian.chen@citigatedr.com

Financial Tables to Follow

 

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

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF SEPTEMBER 30, 2016 AND DECEMBER 31, 2015

(amounts in thousands except share and per share value)

(Unaudited)




September 30, 2016


December 31, 2015


RMB

US$


RMB

ASSETS

Current assets






Cash and cash equivalents


15,679

2,351


14,355

Restricted cash


70,741

10,608


43,215

Accounts and bills receivable, net


22,595

3,388


10,046

Inventories


26,832

4,024


29,574

Advance to suppliers


8,220

1,233


5,640

Prepayments and other receivables


9,303

1,395


20,334

Deferred tax assets - current


1,799

270


1,438

Total current assets


155,169

23,269


124,602







Property, plant and equipment, net


421,571

63,218


431,021

Construction in progress


407

61


1,700

Lease prepayments, net


17,488

2,622


17,882

Advance to suppliers - long term, net


1,918

288


1,440

Long-term deposit


-

-


-

Other Assets


-

-


11,607

Deferred tax assets - non current


15,342

2,301


15,519







Total assets


611,895

91,759


603,771







LIABILITIES AND EQUITY

Current liabilities






Short-term borrowings


45,000

6,748


-

Long-term loan, current portion


3,350

502


3,350

Due to related parties


120,680

18,097


143,080

Accounts payables


33,299

4,993


32,760

Notes payable


109,833

16,470


85,780

Advance from customers


2,617

392


2,247

Accrued expenses and other payables


7,321

1,098


8,682

Obligations under capital leases-current


-

-


302

Total current liabilities


322,100

48,300


276,201







Long-term loan


1,625

244


3,300

Deferred tax liabilities


5,098

764


5,406







Total liabilities


328,823

49,308


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

1,998


13,323

Additional paid-in capital


311,907

46,773


311,907

Statutory reserve


37,441

5,615


37,441

Retained earnings


(79,702)

(11,952)


(44,022)

Cumulative translation adjustment


961

146


1,049

Total shareholders' equity


283,930

42,580


319,698

Non-controlling interest


(858)

(129)


(834)

Total equity


283,072

42,451


318,864

Total liabilities and equity


611,895

91,759


603,771

 

 

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

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

FOR THE THREE- AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2016 AND 2015

(amounts in thousands except share and per share value)

(Unaudited)




The Three-Month Period Ended
September 30,


The Nine-Month Period Ended
September 30, 



2016


2015


2016


2015


RMB

US$


RMB


RMB

US$


RMB

Net sales


61,560

9,231


65,670


183,023

27,446


185,155

Cost of sales


60,504

9,073


61,876


170,752

25,606


188,899












Gross profit (loss)


1,056

158


3,794


12,271

1,840


(3,744)












Operating expenses











Selling expenses


3,193

479


3,771


9,482

1,422


10,124

Administrative expenses


9,497

1,424


10,774


32,694

4,903


26,264

Total operating expenses


12,690

1,903


14,545


42,176

6,325


36,388












Operating loss 


(11,634)

(1,745)


(10,751)


(29,905)

(4,485)


(40,132)












Other income (expense)











- Interest income


200

30


207


552

83


945

- Interest expense


(2,030)

(304)


(2,145)


(5,491)

(823)


(6,558)

- Others income (expense), net


26

4


530


(1,328)

(199)


4,982












Total other expense


(1,804)

(270)


(1,408)


(6,267)

(939)


(631)












Loss before provision for income
taxes


(13,438)

(2,015)


(12,159)


(36,172)

(5,424)


(40,763)












Income tax benefit (expense)


10

1


(97)


492

74


(1,141)












Net loss 


(13,428)

(2,014)


(12,256)


(35,680)

(5,350)


(41,904)












Net loss attributable to
non-controlling interests


-

-


(3)


-

-


(3)

Net loss attributable to the
Company


(13,428)

(2,014)


(12,253)


(35,680)

(5,350)


(41,901)












Other comprehensive income
(loss)











- Foreign currency translation
adjustments attributable to
non-controlling interest


(2)

-


(21)


(24)

(4)


(21)

- Foreign currency translation
adjustments attributable to the
Company


(9)

(1)


(55)


(88)

(13)


(104)












Comprehensive loss attributable to
non-controlling interest


(2)

-


(24)


(24)

(4)


(24)

Comprehensive loss attributable to
the Company


(13,437)

(2,015)


(12,308)


(35,768)

(5,363)


(42,005)












Loss per share,
Basic and diluted


(1.03)

(0.15)


(0.94)


(2.73)

(0.41)


(3.21)

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, 2016 AND 2015

(amounts in thousands except share and per share value)

(Unaudited)




The Nine-Month Period Ended September 30, 



2016


2015



RMB

US$


RMB

Cash flow from operating activities






Net loss


(35,680)

(5,351)


(41,904)

Adjustments to reconcile net loss to net cash used in operating
activities






- Depreciation of property, plant and equipment


32,122

4,817


33,659

- Amortization of intangible assets


393

59


393

- Deferred income taxes


(492)

(74)


1,141

- Bad debt (recovery) expense


1,670

250


(4,309)

-Inventory provision


(226)

(34)


-

Changes in operating assets and liabilities 






- Accounts and bills receivable


(14,219)

(2,132)


(3,350)

- Inventories


2,968

445


(10,655)

- Advance to suppliers


(2,580)

(387)


(1,520)

- Prepaid expenses and other current assets


79

12


(1,140)

- Accounts payable


540

81


3,025

- Accrued expenses and other payables


(1,450)

(217)


1,980

- Advance from customers


370

55


1,704

- Tax payable


10,952

1,642


(1,401)







Net cash used in operating activities


(5,553)

(834)


(22,377)







Cash flow from investing activities






Purchases of property, plant and equipment


(11,064)

(1,659)


(233)

Restricted cash related to trade finance


(27,521)

(4,127)


(2,455)

Advance to suppliers - non current


(478)

(72)


(376)

Amount change in construction in progress


1,293

194


(923)

Refund of long-term deposit


-

-


21,000







Net cash provided by (used in) investing activities


(37,770)

(5,664)


17,013







Cash flow from financing activities






Principal payments of bank loans


(1,675)

(251)


(1,675)

Proceeds from short-term bank loans


45,000

6,748


-

Proceeds from related party


(22,401)

(3,359)


15,510

Payment of capital lease obligation


(302)

(45)


(6,602)

Change in notes payable


24,053

3,607


2,727







Net cash provided by financing activities


44,675

6,700


9,960







Effect of foreign exchange rate changes


(28)

(67)


(47)







Net increase (decrease) in cash and cash equivalent


1,324

135


4,549







Cash and cash equivalent






At beginning of period/year


14,355

2,216


9,020

At end of period/year


15,679

2,351


13,569







SUPPLEMENTARY DISCLOSURE:






Interest paid


5,491

823


6,558

Income tax paid


-

-


-







SUPPLEMENTARY SCHEDULE OF NONCASH INVESTING AND FINANCIAL ACTIVITIES:

Account payable for plant and equipment:


2,172

326


2,237

Obligations for acquired equipment under capital lease:


-

-


1,960

 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fuwei-films-announces-its-unaudited-financial-results-for-the-third-quarter-of-2016-300368765.html

SOURCE Fuwei Films (Holdings) Co., Ltd.