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Fuwei Films Announces 30% Increase in Polyester Film Order from Major Customer for the Fourth Quarter of 2018
Time:2018/10/16 13:29:23  Source:

Fuwei Films Announces 30% Increase in Polyester Film Order from Major Customer for the Fourth Quarter of 2018

BEIJING, Oct. 16, 2018 / -- 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 that the Company has received higher orders for the fourth quarter of 2018 from its major customer, Eternal Electronic Material (Guangzhou) Co., Ltd. ("Eternal Electronic").

Based on the expanded demand, Fuwei Films expects that fourth quarter sales to Eternal Electronic will be approximately 30% higher as compared to the same period of 2017. As a result, the Company expects 2018 annual sales to Eternal Electronic to be approximately 27% higher than 2017. Eternal Electronic is a global manufacturer of dry films and one of the Company's top customers for polyester film, which serves as base film for producing dry film used in Printed Circuit Boards ("PCB"). Polyester film for PCBs is one of the Company's high value-added and differentiated products. Fuwei Films has been supplying Eternal Electronic with high-quality specialty film products and sound services for a number of years.

"The order increase from Eternal Electronic demonstrates that the product quality of our PCB-purpose polyester film is recognized by our major customers. Meanwhile, we believe that the order growth also helps improve the Company's financial performance," commented Mr. Zengyong Wang, Chairman of Fuwei Films, "Going forward, we plan to continue developing our portfolio of new and high-quality film products and maintain excellent customer service for competitive positioning."

About Fuwei Films Fuwei Films develops, manufactures and distributes high-quality plastic films using the biaxial oriented stretch technique, also known as BOPET film (biaxially oriented polyethylene terephthalate). Fuwei's BOPET film is widely used to package food, medicine, cosmetics, tobacco, and alcohol, as well as used in the imaging, electronics, and magnetic products industries.

Safe Harbor

This press release 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 more fully disclosed in the Company's reports filed with the U.S. Securities and Exchange Commission which, among other things, include both the possible delisting of the Company's ordinary shares from the NASDAQ Global Market; significant competition in the BOPET film industry, especially the significant oversupply of BOPET films resulting from the rapid growth of the Chinese BOPET industry capacity, changes in the international market and trade barriers, especially the adverse impact of the antidumping investigation and imposition of an anti-dumping duty on imports of the BOPET films originating from the People's Republic of China ("China") conducted by certain main importing countries; fluctuations of RMB exchange rate, the reduce in demand for the Company's products or the loss of main customers which may result in the decrease of sales, and negatively influencing the Company's financial performance, uncertainty as to the future profitability, uncertainty as to the Company's ability to successfully obtain additional funds to meet the working capital needs of the new BOPET production line, uncertainty as to the Company's ability to continuously develop new BOPET film products to be produced by the third production line and keep up with changes in BOPET film technology, risks associated with possible defects and errors in its products including complaints and claims from clients, uncertainty as to its ability to protect and enforce its intellectual property rights, uncertainty as to its ability to attract and retain qualified executives and personnel, and uncertainty in acquiring raw materials on time and on acceptable terms, particularly in light of the volatility in the prices of petroleum products in recent years, instability of power and energy supply, and the uncertainty regarding the future operation of the Company in connection with the changes in the labor law in China, the measures taken by the Chinese government to save energy and reduce emissions, and the complaints from nearby residents and local government about the noise caused by our production as well as the uncertainty of the impact of major shareholder transfer that have substantial influence over the Company and the Company's business operation including possible overlap of our BOPET products, customers and market orientation with an BOPET film manufacturer, which is controlled by the same individual who has control over the shares of our major shareholder. The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the 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 the date of this press release. Actual results of our operations may differ materially from information contained in the forward-looking statements as a result of the risk factors.

For more information, please contact:

In China: Ms. Xiaoli Yu Investor Relations Manager Phone: +86-133-615-59266 Email: fuweiIR@fuweifilms.com

In the U.S.: Mr. Shiwei Yin Investor Relations Grayling Phone: +1-646-284-9474 Email: shiwei.yin@grayling.com