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Fuwei Films (Holdings) Co., Ltd. ( NASDAQ: FFHL). Presentation December 2012. Safe Harbor Statement.
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Fuwei Films (Holdings) Co., Ltd.(NASDAQ: FFHL) Presentation December 2012
Safe Harbor Statement 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.
Equity Market Data * Listed on NASDAQ Global Market on December 22, 2006
Company Highlights 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 consumermarket • 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. *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 2012is about 20,378tons, accounting for about 3% of domestic markets National High-tech enterprise in China Approximately 260employees Facilities are located in No.387, Dongming Road, Weifang, Shandong, PRC Company Introduction 5
Company Highlights Focused 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.
Main Products Commodity Film Advantages • Printing film • Hot stamping film • Transfer printing film • Metallizing film • Base film for other applications • High transparency • Excellent thermal stability • Unequaled mechanical strength • Excellent dielectric properties • Good resistance to common solvents and gases Advantages Specialty Film • 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 • Laser embossing film • Heat shrinkage film • Heat sealable film • Chemical treated film • DFR film • Windows film 7
Broad Product Applications Fuwei Films produces BOPET films which are used in many everyday products Packaging Applications Industrial Applications • Tobacco • Processed food • Pharmaceuticals • Cosmetics • Beverage & Alcohol • Metallic yarn, strengthened yarn • Isolation • DFR • Lighting Tile • Glasses used in automobile and buildings 8
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 11
Enhance Research & Development Broader application and promotion of new materials and technologies in high-end packaging and industrial application Enter 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 brands Seek suitable acquisition target M&A: Key growth strategy Growth Strategy 12
Key Financials (amount in thousands, except per share data) 13
Summary • 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
Thank You! www.fuweiholdings.com