PresentationDecember 2012

Fuwei Films (Holdings) Co., Ltd.(NASDAQ: FFHL)

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This presentation contains "forward-looking statements" within the meaning of the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including changes from anticipated levels of sales, future national or regional economic and competitive conditions, changes in relationships with customers, access to capital, difficulties in developing and marketing new products, marketing existing products, customer acceptance of existing and new products, and other factors. Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company has no obligation to update the forward-looking information contained in this presentation. Additional information regarding the risks faced by the company may be found in its filings from time to time with the Securities and Exchange Commission including in its Annual Report on Form 20-F.

Safe Harbor Statement

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Public Company NASDAQ Global Market*

Trading Symbol FFHL

Revenues Q3 2012’: $14.1M; First Nine Months of 2012: $43.3M

Cash on Hand $2.5M (as of 9/30/2012)

Market Cap $18.03M(closing price of $1.37 on December 4, 2012)

Shares Outstanding 13.06M

Float 4.5M

IPO Underwriters Maxim Group LLC (Lead Manager); WR Hambrecht + Co.; Chardan Capital Markets, LLC

* Listed on NASDAQ Global Market on December 22, 2006

Equity Market Data

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Leading producer of high-quality and specialty BOPET film• Main producer of laser transfer film• The only heat shrinkage film producer in China• The only local dry film manufacturer in China• Well-known reputation in quality and service

Well-positioned to benefit from China’s ever-expanding consumer market

• BOPET market*:$1.99 billion in China with about 20% growth and $6.24 billion globally in 2010

• Shares in the Global market of Chinese BOPET industry : #1 in the world, design production capacity is 1,003,000 tons and accounts for about 30 % of major economies by 2010

Excellent R&D strength• Solid IP portfolio with further patents and products in pipeline• Commitment to R&D investment, own the only Pilot production line in China• Expanding R&D team

Notable News• Signed letter of intent on PETG heat shrinkable label film supply with China Bottlers

Procurement Consortium, the authorized procurement service provider for the Coca-Cola Bottling system in China

• Signed supplementary agreement with Lindauer Dornier GmbH on new production line, to be delivered 3 months ahead of schedule.

Company Highlights

*Management Estimate

•The Company develops, manufactures and distributes BOPET films and is one of the main manufacturers in China’s BOPET industry.

•Sales in the first nine months of 2012 is about 20,378 tons,accounting for about 3% of domestic markets

•National High-tech enterprise in China

•Approximately 260 employees

•Facilities are located in No.387, Dongming Road,Weifang, Shandong, PRC

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Company Introduction

Company HighlightsFocused growth strategy• Enhance Research & Development, increase proportion of high value-added

products• Enter high-margin, fast growing thick-film market• Continue developing overseas market by optimizing products structure and

adjusting overseas sales area• Seek suitable acquisition target

Financial results for Third Quarter 2012• 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

• 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

• 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.

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Commodity Film

Specialty Film

• Printing film• Hot stamping film• Transfer printing film• Metallizing film• Base film for other applications

• Laser embossing film• Heat shrinkage film• Heat sealable film• Chemical treated film• DFR film• Windows film

• High transparency • Excellent thermal stability • Unequaled mechanical strength• Excellent dielectric properties• Good resistance to common solvents and

gases

• Optically brilliant• Tear-resistant and puncture-resistant

characteristics• Good flatness and coefficient of friction• Anti-counterfeiting • Flexible, impact resistant, and tear-

resistant • High image formation

Advantages

Advantages

Main Products

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Fuwei Films produces BOPET films which are used in many everyday products

• Metallic yarn, strengthened yarn

• Isolation • DFR• Lighting Tile• Glasses used in

automobile and buildings

Packaging Applications Industrial Applications• Tobacco• Processed food• Pharmaceuticals• Cosmetics• Beverage & Alcohol

Broad Product Applications

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Experienced Management TeamXiaoan HeChief Executive Officer, Chairman of the Board

• Over 10 years of management experience in the plastics and packaging industries in the PRC

• Responsible for the formulation and implementation of business strategies and management of operations

• Bachelor’s Degree in Engineering from Shanghai Jiaotong University in 1983

• EMBA from the China Europe International Business School in 2003

Xiuyong Zhang Chief Financial Officer, Director• More than 10 years of experience in accounting and

financial fields • Certified as an accounting professional by the Ministry of

Finance of the PRC in 1997 • Obtained PRC CPA Certification in 1998 • Obtained PRC Assets Assessment Appraiser and Legal

Professional Certification in 2004 • Obtained the Certificate of the Legal Profession

Qualifications of People's Republic of China in 2009• Responsible for the day-to-day management of our

financial and taxation matters

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Line(s)

Designed Annual

Capacity (metric tons)

Description Timeline

1 13,000 Used for consumer packaging; product mix (commodity vs. specialty) is adjustable per

purchase order; focus on increasing specialty film sales

In operation2 16,100

3 23,000High value-added thick film products for

industrial application (main products: including optical film such as TFT-LCD film)

Expected to be put into operation by the end of 2012 or Early

2013

4 1,500 Trial Production Line: for R&D, small batches of high-value differentiated products In operation

Total

53,600

Production Lines

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One of the few BOPET producers in PRC with strong technical human resources• 17 senior researchers & technicians• Several foreign consultants with deep industry knowledge and expertise

Solid Intellectual Property portfolio• 11 existing patents • 19 pending patents

R&D plan • R&D center is built up to develop new products.• The trial production line:

– Research and develop new products.– Produce small batches of high value-added specialty films.– Quality control and process test for cost saving prior to large scale production.

• Deepen R&D forces on thick film to be applied for LCD films.• Develop new thick films and specialty products.• Substantially expand technical team over the next two years. • Continuous support from the local government.

R&D Enhancement Plan

Enhance Research & Development• Broader application and promotion of new materials and technologies in high-end

packaging and industrial applicationEnter high-margin, thick-film market• Gain entry into the thick film industry and replace imported high-end products• Expand production capacity for significant revenue growth

Continue developing overseas markets and promote further the Fuwei Films brand • Optimize products structure and adjust overseas sales area• A high-quality and competitively-priced Chinese replacement to the global brandsSeek suitable acquisition target• M&A: Key growth strategy

Commodity FilmsDomestic sales

Specialty FilmsM&A

Exports12

Growth Strategy

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(amount in thousands, except per share data)

Key Financials

Nine-Month Period Ended September

30, 2012 RMB USD

FY2011 RMB USD

FY2010 RMB

Revenue 272,196 43,310 537,645 85,432 501,458Cost of goods sold (272,475) (43,355) (452,173) (71,843) (370,905)

Gross profit (279) (45) 85,472 13,580 130,553Selling, General and Administrative

35,943 5,719 (54,736) (8,697) (70,922)

Income tax benefit (expense)

(133) (21) 3,955 (628) (11,059)

Net income (41,900) (6,668) 21,081 3,349 40,976Earnings (Loss) per share (3.21) (0.51) 1.61 0.26 3.12

  

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(amount in thousand)September 30, 2012

December 31, 2011

December 31, 2010

RMB USD RMB RMB

Cash & Cash Equivalents 15,767 2,509 44,172 　 171,227

Accounts Receivable, net 17,859 2,842 52,457 25,482

Current Assets 164,396 26,158 281,904 263,458

Construction in progress 277,320 44,126 179,386 197,193

Total Assets 773,236 123,033 790,174 798,152

Short-term Loans 120,000 19,094 168,501 142,000

Current Liabilities 230,487 36,674 217,303 246,402

Stockholders’ Equity 13,323 2,120 573,669 552,544Total Liabilities and

Stockholders’ Equity 

773,236 123,033 790,174 798,152

Balance Sheet Highlights

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• Leading producer of high-quality BOPET film and specialty film in China

• Well-positioned to benefit from large consumer market

• Excellent R&D strength

• Delivering profitable results and significant profitable potential growth

• Solid organic growth strategy

• Driven by an experienced management team

Summary

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Thank You!www.fuweiholdings.com