fuwei films develops, manufactures and distributes high quality plastic film known as bopet...
TRANSCRIPT
Fuwei Films develops, manufactures and distributes high quality plastic film known as BOPET (biaxially oriented polyethylene terephthalate) film. Light-weight, non-toxic, odorless, transparent, glossy, temperature and moisture-resistant, and with high barrier resistance, 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. Customers include some of the world’s largest flexible packaging companies.
The Company has been expanding its international sales and focusing on higher margin specialty films for specific markets. Fuwei Films is also developing its R&D capabilities to meet the needs of customers in the high-end packaging industry and building the capacity to produce thick film.
ABOUT FUWEI FILMS
INVESTOR FACT SHEET
Nasdaq Global Market: FFHL
INVESTMENT HIGHLIGHTS
A producer of high quality and specialty plastic film• A leader in China for Heat Sealable & Embossing specialty film
production
Well positioned to benefit from a large consumer market• Billion dollar BOPET market in China and 5 billion globally with
solid 15-20% growth projected in the sector
Excellent research and development strength• Solid IP portfolio with further patents and products in pipeline• Commitment to R&D investment
Focused growth strategy• Enhance R&D• Enter high-margin, thick-film market• Continue developing overseas market by optimizing products
structure and adjusting overseas sales area• Seek suitable acquisition target
Financial results• FY10: revenue $75.8M and net income $6.2M• 1Q11: revenue $26.5M and EPS $0.28
SIGNIFICANT MARKET OPPORTUNITIES
Packaging filmDemand for consumer goods continues to drive overall growth of the packaging industry, with global sales expected to reach $11 billion by 2014. In addition, China is the second largest packaging market, behind the U.S. and an estimated $1.99 billion in sales was expected for 2010. This translates into rapid growth for the BOPET film industry in China due to its use in a wide variety of consumer goods.
Industrial filmThere is also increasing demand for specialty film products, particularly thick film. Currently, most thick film is imported as no domestic producer can supply required quality for high-end applications.
Stock Symbol: FFHL (Nasdaq Global Market)
Recent Stock Price: $2.75 (as of 06/24/11)
52-Week Range: $0.78 - $6.55
Shares Outstanding: 13.06 Million
Market Capitalization: $35.92 Million
Fiscal Year End: December 31
FFHL KEY FACTS
FORWARD LOOKING STATEMENT:. This fact sheet 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 disclosed in the Company's reports filed with the Securities and Exchange Commission some of which are among, competition in the BOPET film industry; growth and risks inherent in the BOPET film industry in China; uncertainty as to future profitability and our ability to obtain adequate financing for planned capital expenditures; 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 given the price volatility of petroleum products. The forward-looking information provided herein represents the Company's estimates as of this date, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update 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 this date. Actual results of operations may differ materially from information contained in the forward-looking statements as a result risk factors. This fact sheet is not a solicitation to buy or sell securities and is for informational purposes only. The information herein is not complete and readers should review all materials including SEC documents and press releases.
FINANCIAL HIGHLIGHTS
Nasdaq Global Market: FFHL
Mr. Xiaoan He Chairman of the Board, Chief Executive Officer
Mr. Xiuyong ZhangDirector and Chief Financial Officer
REVENUE BREAKDOWN
Fuwei Films (Holdings) Co., Ltd. NO. 387 Dongming RoadWeifang, Shandong, People’s Republic of China, 261061
www.fuweiholdings.com
(Unaudited, in millions, except per share data)
1Q11(RMB)
1Q10 (RMB)
FY10 (RMB)
FY09(RMB)
Net sales 174.2 88.5 501.5 320.7
COGS (129.0) (75.7) (370.9) (296.1)
Gross profit 45.1 12.8 130.6 24.6
SG&A (15.7) (10.9) (70.9) (41.2)
Net Income 23.6 0.3 40.8 (19.0)
EPS – Basic & Diluted
1.81 0.02 3.12 （ 1.45）
Products 1Q11 1Q10 FY10 FY09
Printing film 7.7% 10.5% 15.3% 11.0%
Stamping film 58.1% 65.2% 56.2% 54.4%
Metallization film 6.4% 8.7% 5.6% 10.9%
Specialty film 22.9% 9.6% 17.5% 10.6%
Base film for other applications
4.9% 5.9% 5.4% 13.1%
Total Sales 1Q11 1Q10 FY10 FY09
Sales in China 66.6% 87.2% 79.3% 88.9%
Sales in other countries
33.4% 12.8% 20.7% 11.1%
SENIOR MANAGEMENT TEAM
CONTACT INFORMATION
CHINAMs. Amy Gao – Investor Relations Fuwei Films (Holdings) Co., LtdPhone: +86 [email protected]
USMs. Leslie Wolf-Creutzfeldt – Investor Relations GraylingPhone: +1 646-284-9472 [email protected]
Legal CounselLoeb & Loeb LLP345 Park Avenue, NY, NY, 10154Phone: +1 212-407-4000 www.loeb.com
Independent AuditorsKabani & Company, Inc.6033 West Century Blvd., Suite 810Los Angeles, CA, 90045 Phone: +1 310-694-3590 | www.kabanico.com
INVESTOR CONTACTS LEGAL CONTACTS