Transcript INVESTOR FACT SHEET Nasdaq Global Market: FFHL ABOUT FUWEI FILMS Fuwei Films develops, manufactures and distributes high quality plastic film known as BOPET.

INVESTOR FACT SHEET
Nasdaq Global Market: FFHL
ABOUT FUWEI FILMS
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.
FFHL KEY FACTS
Stock Symbol: FFHL (Nasdaq Global Market)
Recent Stock Price: $1.37 (as of 12/4/12)
52-Week Range: $0.80 - $2.48
Shares Outstanding: 13.06 Million
Market Capitalization: $18.03 Million
Fiscal Year End: December 31
Certifications,
Recognitions
& Awards,
including…
• Designated A-Category taxpayer
• “Famous Shandong Brand” Selection
• “First Award of Private SME Innovation of
Shandong Province”
Financial
Highlights Q3
2012
including…
• Net sales for the third quarter were RMB88.8
• Net cash provided by operating activities during
the first nine months was RMB104.7 million
(US$16.7 million), compared with net cash
provided by operating activities RMB17.1 million
in the same period of 2011.
Key Growth
Drivers
Including…
• Entering thick-film market,
• Chinese consumers estimated to spend $40b
on food, beverages, and cigarettes by 2015 –
causing significant growth for BOPET Wrap
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
• Leaders in the Specialty BOPET Markets which have higher margins and
growth potential
• Environmentally friendly products are attracting customers like
CocaCola in China
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
• FY11: revenue $85.4M and net income $21.1M
• Q3 12: revenue $14.1M
SIGNIFICANT MARKET OPPORTUNITIES
• Fuwei have made significant progress in the construction of our
third production line for thick films despite the current market
condition.
• If all goes as planned, we expect to start trial operations of the
line by the end of the year or early next year.
• We have started the R&D for our thick films to be manufactured by
this production line including high performance electric insulation
film, base film for solar backsheet and TFT-LCD optical films.
• In addition, we have started marketing these products and
contacting target clients
Nasdaq Global Market: FFHL
Fuwei Films’ Commodity & Specialty Film
Sales
- period ending September 30, 2011
3.20%
11.20%
24.70%
Printing film
54.40%
(Unaudited, in millions, except
per share data)
Q3 2012
(RMB)
Q3 2011
(RMB)
FY2011
(RMB)
FY2010
(RMB)
88.8
117.0
537.6
501.5
(87.9)
(106.6)
(452.2)
(370.9)
0.9
10.4
85.5
130.6
SG&A
(13.4)
(14.0)
(54.7)
(70.9)
Net Income
(14.9)
(4.9)
21.1
40.8
EPS – Basic & Diluted
(1.14)
(0.38)
1.61
3.12
Stamping film
Net sales
Metallization film
COGS
Specialty film
6.50%
FINANCIAL HIGHLIGHTS
Base film for other
applications
SENIOR MANAGEMENT TEAM
Gross profit
Mr. Xiaoan He
Chairman of the Board, Chief Executive Officer
REVENUE BREAKDOWN
Mr. Xiuyong Zhang
Director and Chief Financial Officer
CONTACT INFORMATION
Fuwei Films (Holdings) Co., Ltd.
NO. 387 Dongming Road
Weifang, Shandong,
People’s Republic of China, 261061
www.fuweiholdings.com
INVESTOR CONTACTS
Q3 2012
Q3 2011
FY2011
FY2010
Printing film
Products
10.4%
11.2%
10.3%
15.3%
Stamping film
52.1%
54.4%
54.6%
56.2%
Metallization film
4.2%
6.5%
5.3%
5.6%
Specialty film
29.0%
24.7%
26.1%
17.5%
Base film for other
applications
4.2%
3.2%
3.7%
5.4%
Q3 2012
Q3 2011
FY2011
FY2010
Sales in China
78.0%
80.8%
72.9%
79.3%
Sales in other countries
22.0%
19.2%
27.1%
20.7%
Total Sales
LEGAL CONTACTS
CHINA
Miss Lysander Lee – Investor Relations
Fuwei Films (Holdings) Co., Ltd
Phone: +86 10-68522612
[email protected]
Legal Counsel
Loeb & Loeb LLP
345 Park Avenue, NY, NY, 10154
Phone: +1 212-407-4000
www.loeb.com
US
Ms Leslie Wolf-Creutzfeldt – Investor Relations
Grayling
Phone: +1 646-284-9472
[email protected]
Independent Auditors
Kabani & Company, Inc.
6033 West Century Blvd., Suite 810
Los Angeles, CA, 90045
Phone: +1 310-694-3590 | www.kabanico.com
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.