Business News
Fuwei Films Confirms Previously Announced Third Quarter 2007 Financial Results
Friday 11. January 2008 - New Independent Accountants Complete Review
Fuwei Films (Holdings) Co. Limited (NASDAQ:FFHL) (”Fuwei” or ”the Company”), a manufacturer and distributor of high-quality BOPET plastic films in China, today announced that the review of its interim financial statements for the third quarter and nine months ended September 30, 2007 has been completed.
On November 12, 2007, Fuwei reported preliminary third quarter and nine months results which had not undergone a review by independent accountants.
Mr. Xiaoan He, Chairman and CEO of Fuwei, commented, ”We are pleased to be able to present our third quarter and nine months 2007 results reflecting the review of our new independent accounting firm.”
Mr. He continued, ”We are now in a position to provide an expanded presentation and discussion of our previously announced third quarter and nine months results. As we stated previously, Fuwei experienced a solid quarter. We are also proud that during and since the third quarter 2007, we have been able to overcome several significant challenges such as regaining compliance with Nasdaq Marketplace Rules resulting from the election of three new directors and a new chairman of our audit committee.”
Third Quarter 2007 Financial Highlights (Reviewed)
— Net Sales of US$14.3 million (RMB 107.7 million), a 12.8 percent
increase year-over-year;
— Gross Profit of US$3.1 million (RMB 23.6 million), an increase of 5.4
percent year-over-year;
— Operating Income of US$2.1 million (RMB 15.6 million), down 2.5 percent
year-over-year;
— Net Income of US$1.7 million (RMB 12.9 million), down 7.2 percent year-
over-year. Compared to the number previously disclosed on November 12,
2007 (US$1.8 million, or RMB13.9 million), the slight difference is
mainly due to the audit adjustments adopted by our independent auditor,
rather than due to the different accounting principles adopted by the
new independent accountants and the Company;
— Basic and Diluted EPS of US$0.13 (RMB 0.99). Compared to the number
previously disclosed on November 12, 2007 (US$0.14, or RMB1.07), the
difference is due to change in the adjusted net income.
Third Quarter & Nine Months Financial Results (Reviewed)
Net sales for the third quarter of 2007 were US$14.3 million (RMB 107.7 million), an increase of 12.8 percent over the same period 2006. The increase in net sales was primarily due to production from the leased line. Net sales for the first nine months of 2007 were US$42.8 million (RMB 327.8 million), an increase of 3.9 percent from the US$ 39.4 million (RMB 315.4 million) recorded in the first nine months of 2006.
Sales by Product:
Sales of specialty films in the third quarter 2007 were US$5.4 million (RMB 41.0 million), an increase of 4.6 percent over the third quarter 2006. Specialty films accounted for 38.1 percent of Fuwei’s total net sales in the third quarter 2007.