Market Overview

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

Share:

BEIJING, Aug. 22, 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 

View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com