Fuwei Films Announces Its Unaudited Financial Results for the Second Quarter of 2021
-Teleconference to be Held on Friday, September 3, 2021 at 8:00 am ET-
BEIJING, Sept. 2, 2021 /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 second quarter and first six months of 2021 ended June 30, 2021.
Second Quarter 2021 Financial Highlights
- Net sales were RMB100.6 million (US$15.6 million), compared to RMB82.9 million during the same period in 2020, representing a year-over-year increase of RMB17.7 million or 21.4%.
- Sales of specialty films were RMB69.0 million (US$10.7 million) or 68.6% of our total revenues as compared to RMB48.1 million or 58.0% in the same period of 2020, which was a year-over-year increase of RMB20.9 million, or 43.5%.
- Overseas sales were RMB13.4 million (US$2.1 million) or 13.3% of total revenues, compared with RMB7.5 million or 9.1% of total revenues in the second quarter of 2020.
- Gross profit was RMB39.9 million (US$6.2 million), representing a gross profit rate of 39.6%.
- Net profit attributable to the Company was RMB19.8 million (US$3.1 million), compared with net profit attributable to the Company of RMB14.1 million during the same period in 2020.
First Six Months 2021 Financial Highlights
- Net sales were RMB202.2 million (US$31.3 million), compared to RMB166.1 million in the same period in 2020, representing an increase of RMB36.1 million or 21.7%.
- Sales of specialty films were RMB133.9 million (US$20.7 million) or 66.2% of our total revenues as compared to RMB88.0 million or 53.0% in the same period of 2020.
- Overseas sales were RMB22.4 million (US$3.5 million), or 11.1% of total revenues, compared with RMB13.3 million or 8.0% of total revenues in the same period in 2020.
- Our gross profit was RMB82.3 million (US$12.7 million), representing a gross margin rate of 40.7%, as compared to a gross margin rate of 38.7% for the same period in 2020.
- Net income attributable to the Company was RMB51.2 million (US$7.9 million), compared to net income attributable to the Company of RMB27.0 million during the same period in 2020.
Mr. Lei Yan, Chairman and CEO of Fuwei Films, commented, "We continued to achieve positive trends in our mix of sales, especially sales of specialty films which accounted for 68.6% of our total revenues for the second quarter ended June 30, 2021. We believe these results benefit from our commitment to innovation and differentiated marketing strategy, which have expanded the end-user applications of our films products. We will carry on with these efforts and expect that they will enable the Company to capitalize on new opportunities despite challenging industry and economic conditions."
Second Quarter 2021 Results
Net sales during the second quarter ended June 30, 2021 were RMB100.6 million (US$15.6 million), compared to RMB82.9 million during the same period in 2020, representing a year-over-year increase of RMB17.7 million or 21.4%. The increase of average sales price caused a year-over-year increase of RMB15.6 million and higher sales volume caused an increase of RMB2.1 million.
In the second quarter of 2021, sales of specialty films were RMB69.0 million (US$10.7 million) or 68.6% of our total revenues as compared to RMB48.1 million or 58.0% in the same period of 2020, which was an increase of RMB20.9 million, or 43.5% as compared to the same period in 2020. The increase of sales volume caused an increase of RMB16.0 million and the increase in the average sales price caused an increase of RMB4.9 million.
The following is a breakdown of commodity and specialty film sales (amounts in thousands):
Three-Month Period Ended | % of Total | Three-Month Period Ended | % of Total | |||
RMB | US$ | RMB | ||||
Stamping and transfer film | 21,762 | 3,371 | 21.6% | 25,885 | 31.3% | |
Printing film | 5,232 | 810 | 5.2% | 5,746 | 6.9% | |
Metallization film | 1,090 | 169 | 1.1% | 1,159 | 1.4% | |
Specialty film | 68,979 | 10,683 | 68.6% | 48,088 | 58.0% | |
Base film for other application | 3,519 | 545 | 3.5% | 1,978 | 2.4% | |
100,582 | 15,578 | 100.0% | 82,856 | 100.0% | ||
Overseas sales were RMB13.4 million or US$2.1 million, or 13.3% of total revenues, compared with RMB7.5 million or 9.1% of total revenues in the second quarter of 2020. The increase of average sales price caused an increase of RMB0.6 million and the increase in sales volume resulted in an increase of RMB5.3 million.
The following is a breakdown of PRC domestic and overseas sales (amounts in thousands):
Three-Month Period Ended | % of Total | Three-Month Period Ended RMB | % of Total | |||
RMB | US$ | |||||
Sales in China | 87,205 | 13,506 | 86.7% | 75,334 | 90.9% | |
Sales in other countries | 13,377 | 2,072 | 13.3% | 7,522 | 9.1% | |
100,582 | 15,578 | 100.0% | 82,856 | 100.0% | ||
Gross profit was RMB39.9 million (US$6.2 million) for the second quarter ended June 30, 2021, representing a gross profit rate of 39.6%, as compared to a gross profit rate of 41.6% for the same period in 2020.
Operating expenses for the second quarter ended June 30, 2021 were RMB14.0 million (US$2.2 million), as compared to RMB18.7 million for the same period in 2020. This decrease was mainly due to the decrease of accrual depreciation of the third production line and trial production line as these two production lines were sold.
Net profit attributable to the Company during the second quarter ended June 30, 2021 was RMB19.8 million (US$3.1 million) while net profit attributable to the Company was RMB14.1 million during the same period in 2020.
Financial Results for the Six Months Ended June 30, 2021
Net sales during the six-month period ended June 30, 2021 were RMB202.2 million (US$31.3 million), compared to RMB166.1 million in the same period in 2020, representing an increase of RMB36.1 million or 21.7%. The increase in average sales price caused an increase of RMB22.0 million and the increase in the sales volume caused an increase of RMB14.1 million.
In the six-month period ended June 30, 2021, sales of specialty films were RMB133.9 million (US$20.7 million) or 66.2% of our total revenues as compared to RMB88.0 million or 53.0% in the same period of 2020, which was an increase of RMB45.9 million, or 52.2% as compared to the same period in 2020. The increase in sales volume caused an increase of RMB41.6 million and the increase in the average sales price caused an increase of RMB4.3 million.
The following is a breakdown of commodity and specialty film sales (amounts in thousands):
Six-Month Period Ended | % of Total | Six-Month Period Ended | % of Total | ||
RMB | US$ | RMB | |||
Stamping and transfer film | 47,113 | 7,298 | 23.3% | 60,406 | 36.3% |
Printing film | 10,714 | 1,659 | 5.3% | 11,591 | 7.0% |
Metallization film | 2,733 | 423 | 1.4% | 2,661 | 1.6% |
Specialty film | 133,941 | 20,745 | 66.2% | 87,965 | 53.0% |
Base film for other application | 7,705 | 1,193 | 3.8% | 3,466 | 2.1% |
202,206 | 31,318 | 100.0% | 166,089 | 100.0% | |
Overseas sales during the six months ended June 30, 2021 were RMB22.4 million or US$3.5 million, or 11.1% of total revenues, compared with RMB13.3 million or 8.0% of total revenues in the same period in 2020. This was RMB9.1 million higher than the same period in 2020. The increase in sales volume resulted in an increase of RMB8.1 million while higher average sales price caused an increase of RMB1.0 million.
The following is a breakdown of PRC domestic and overseas sales (amounts in thousands):
Six-Month Period Ended | % of Total | Six-Month Period Ended RMB | % of Total | ||
RMB | US$ | ||||
Sales in China | 179,801 | 27,848 | 88.9% | 152,783 | 92.0% |
Sales in other countries | 22,405 | 3,470 | 11.1% | 13,306 | 8.0% |
202,206 | 31,318 | 100.0% | 166,089 | 100.0% | |
Our gross profit was RMB82.3 million (US$12.7 million) for the first six months ended June 30, 2021, representing a gross margin rate of 40.7%, as compared to a gross margin rate of 38.7% for the same period in 2020. Correspondingly, gross margin rate increased by 2.0 percentage points. Our average product sales prices increased by 12.2% compared to the same period last year while the average cost of goods sold increased by 8.4% 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, 2021 were RMB24.4 million (US$3.8 million), compared to RMB33.8 million in the same period in 2020, which was RMB9.4 million or 27.8% lower than the same period in 2020. This decrease was mainly due to the decrease of accrual depreciation of the third production line and trial production line.
Net income attributable to the Company during the first half of 2021 was RMB51.2 million (US$7.9 million) compared to net income attributable to the Company of RMB27.0 million during the same period in 2020, representing an increase of RMB24.2 million from the same period in 2020 due to the factors described above.
Cash, cash equivalent and restricted cash totaled RMB176.1 million (US$27.3 million) as of June 30, 2021. Total shareholders' equity was RMB279.0 million (US$43.2 million).
As of June 30, 2021, the Company had 3,265,837 basic and diluted total ordinary shares outstanding.
Conference Call Information
The Company will host a teleconference on Friday, September 3, 2021, at 8:00 a.m. ET / 8:00 p.m. Beijing time to discuss the financial results. To participate in the call, please dial +1-844-602-0380 in North America, or +1-862-298-0970 internationally, approximately 5 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: 42544. The replay will be available until September 17, 2021.
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 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 coronavirus (COVID-19) outbreak and the effects of government and other measures seeking to contain its spread, 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: [email protected]
In the U.S.:
Shiwei Yin
Investor Relations
Grayling
Phone: +1-646-284-9474
Email: [email protected]
And
Lucia Domville
Investor Relations
Grayling
Phone: +1-646-824-2856
Email: [email protected]
Financial Tables to Follow
FUWEI FILMS (HOLDINGS) CO., LTD. AND SUBSIDIARIES | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
AS OF JUNE 30, 2021 AND DECEMBER 31, 2020 | |||||
(amounts in thousands except share and per share value) | |||||
(Unaudited) | |||||
June 30, 2021 | December 31, 2020 | ||||
RMB | US$ | RMB | |||
ASSETS | |||||
Current assets | |||||
Cash and cash equivalents | 176,069 | 27,270 | 113,423 | ||
Restricted cash | - | - | 7,500 | ||
Accounts and bills receivable, net | 43,797 | 6,783 | 32,393 | ||
Inventories | 24,477 | 3,791 | 25,436 | ||
Advance to suppliers | 10,388 | 1,609 | 7,359 | ||
Prepayments and other receivables | 1,155 | 179 | 1,103 | ||
Assets held for sale | - | - | 122,919 | ||
Deferred tax assets - current | 1,369 | 212 | 6,947 | ||
Total current assets | 257,255 | 39,844 | 317,080 | ||
Property, plant and equipment, net | 105,928 | 16,406 | 111,308 | ||
Lease prepayments, net | 14,952 | 2,316 | 15,219 | ||
Advance to suppliers - long term, net | - | - | 1,542 | ||
Deferred tax assets - non current | 297 | 46 | 507 | ||
Total assets | 378,432 | 58,612 | 445,656 | ||
LIABILITIES AND EQUITY | |||||
Current liabilities | |||||
Short-term borrowings | 65,000 | 10,067 | 65,000 | ||
Due to related parties | - | - | 73,571 | ||
Accounts payables | 21,763 | 3,371 | 25,730 | ||
Notes payable | - | - | 15,000 | ||
Advance from customers | 2,908 | 450 | 9,297 | ||
Accrued expenses and other payables | 7,964 | 1,233 | 27,400 | ||
Total current liabilities | 97,635 | 15,121 | 215,998 | ||
Deferred tax liabilities | 1,821 | 282 | 1,854 | ||
Total liabilities | 99,456 | 15,403 | 217,852 | ||
Equity | |||||
Shareholders' equity | |||||
Registered capital (of US$0.519008 par value; 5,000,000 shares | 13,323 | 2,063 | 13,323 | ||
Additional paid-in capital | 311,907 | 48,308 | 311,907 | ||
Statutory reserve | 37,441 | 5,799 | 37,441 | ||
Retained earnings | (84,535) | (13,093) | (135,707) | ||
Cumulative translation adjustment | 840 | 132 | 840 | ||
Total shareholders' equity | 278,976 | 43,209 | 227,804 | ||
Total equity | 278,976 | 43,209 | 227,804 | ||
Total liabilities and equity | 378,432 | 58,612 | 445,656 | ||
FUWEI FILMS (HOLDINGS) CO., LTD. AND SUBSIDIARIES | |||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | |||||||||||
FOR THE THREE- AND SIX-MONTH PERIODS ENDED JUNE 30, 2021 AND 2020 | |||||||||||
(amounts in thousands except share and per share value) | |||||||||||
(Unaudited) | |||||||||||
The Three-Month Period Ended June 30, | The Six-Month Period Ended June 30, | ||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||
RMB | US$ | RMB | RMB | US$ | RMB | ||||||
Net sales | 100,582 | 15,578 | 82,856 | 202,206 | 31,318 | 166,089 | |||||
Cost of sales | 60,728 | 9,406 | 48,421 | 119,902 | 18,570 | 101,895 | |||||
Gross profit | 39,854 | 6,172 | 34,435 | 82,304 | 12,748 | 64,194 | |||||
Operating expenses | |||||||||||
Selling expenses | 4,944 | 766 | 3,372 | 9,058 | 1,403 | 7,458 | |||||
Administrative expenses | 9,014 | 1,396 | 15,368 | 15,369 | 2,380 | 26,323 | |||||
Total operating expenses | 13,958 | 2,162 | 18,740 | 24,427 | 3,783 | 33,781 | |||||
Operating income | 25,896 | 4,010 | 15,695 | 57,877 | 8,965 | 30,413 | |||||
Other income (expense) | |||||||||||
- Interest income | 1,368 | 212 | 567 | 2,225 | 345 | 857 | |||||
- Interest expense | (1,378) | (213) | (2,241) | (2,953) | (457) | (4,457) | |||||
- Others income (expense), net | (344) | (53) | 49 | (222) | (34) | 118 | |||||
Total other expenses | (354) | (54) | (1,625) | (950) | (146) | (3,482) | |||||
Income(loss) before provision for income taxes | 25,542 | 3,956 | 14,070 | 56,927 | 8,819 | 26,931 | |||||
Income tax benefit (expense) | (5,736) | (888) | (13) | (5,755) | (891) | 81 | |||||
Net income (loss) | 19,806 | 3,068 | 14,057 | 51,172 | 7,928 | 27,012 | |||||
Net income (loss) attributable to non-controlling interests | - | - | - | - | - | - | |||||
Net income (loss) attributable to the Company | 19,806 | 3,068 | 14,057 | 51,172 | 7,928 | 27,012 | |||||
Other comprehensive income (loss) | |||||||||||
- Foreign currency translation adjustments attributable to non-controlling interest | - | - | - | - | - | - | |||||
- Foreign currency translation adjustments attributable to the Company | - | - | - | - | - | - | |||||
Comprehensive loss attributable to non-controlling interest | - | - | - | - | - | - | |||||
Comprehensive income(loss ) attributable to the Company | 19,806 | 3,068 | 14,057 | 51,172 | 7,928 | 27,012 | |||||
Earnings (loss) per share, | 6.06 | 0.94 | 4.30 | 15.67 | 2.43 | 8.27 | |||||
Weighted average number ordinary shares, | 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, 2021 AND 2020 | |||||
(amounts in thousands except share and per share value) | |||||
(Unaudited) | |||||
The Six-Month Period Ended June 30, | |||||
2021 | 2020 | ||||
RMB | US$ | RMB | |||
Cash flow from operating activities | |||||
Net loss | 51,172 | 7,928 | 27,012 | ||
Adjustments to reconcile net loss to net cash | |||||
used in operating activities | |||||
- Depreciation of property, plant and equipment | 6,109 | 946 | 17,986 | ||
- Amortization of intangible assets | 266 | 41 | 267 | ||
- Deferred income taxes | 5,755 | 891 | (81) | ||
- Bad debt recovery | 338 | 52 | 160 | ||
-Inventory provision | (497) | (77) | - | ||
Changes in operating assets and liabilities | |||||
- Accounts and bills receivable | (12,667) | (1,962) | (15,026) | ||
- Inventories | 1,456 | 226 | (2,523) | ||
- Advance to suppliers | (2,102) | (326) | (2,497) | ||
- Prepaid expenses and other current assets | (52) | (8) | (87) | ||
- Accounts payable | (3,967) | (614) | 1,176 | ||
- Accrued expenses and other payables | (21,118) | (3,271) | 210 | ||
- Advance from customers | (6,389) | (990) | (793) | ||
- Tax payable | 1,682 | 261 | 65 | ||
Net cash provided by (used in) operating activities | 19,986 | 3,097 | 25,869 | ||
Cash flow from investing activities | |||||
Purchases of property, plant and equipment | (730) | (113) | (1,232) | ||
Proceeds from sale of property, plant and equipment | 122,919 | 19,038 | - | ||
Advanced to suppliers - non current | 1,542 | 239 | - | ||
Amount change in construction in progress | - | - | (999) | ||
Net cash provided by (used in) investing activities | 123,731 | 19,164 | (2,231) | ||
Cash flow from financing activities | |||||
Principal payments of bank loans | - | - | - | ||
Proceeds from (payment to) short-term bank loans | - | - | - | ||
Proceeds from (payment to) related party | (73,571) | (11,395) | 2,309 | ||
Change in notes payable | (15,000) | (2,323) | (31,000) | ||
Net cash (used in) provided by financing activities | (88,571) | (13,718) | (28,691) | ||
Effect of foreign exchange rate changes | - | 195 | - | ||
Net increase in cash and cash equivalent | 55,146 | 8,738 | (5,053) | ||
Cash and cash equivalent | |||||
At beginning of period | 120,923 | 18,532 | 86,371 | ||
At end of period | 176,069 | 27,270 | 81,318 | ||
SUPPLEMENTARY DISCLOSURE: | |||||
Interest paid | 2,953 | 457 | 4,457 | ||
SUPPLEMENTARY SCHEDULE OF NONCASH INVESTING AND FINANCIAL ACTIVITIES: | |||||
Account payable for plant and equipment: | 1,010 | 156 | 1,010 | ||
View original content:https://www.prnewswire.com/news-releases/fuwei-films-announces-its-unaudited-financial-results-for-the-second-quarter-of-2021-301368583.html
SOURCE Fuwei Films