Q4 2020 Fuwei Films (Holdings) Co Ltd Earnings Call

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Good day, ladies and gentlemen, and welcome to the for waste fourth quarter, 2020 earnings Conference call all lines have been.

And only mode and the floor will be.

For your question.

And when we present.

If you should require assistance throughout the conference. Please press star zero on your telephone keypad for retail arm operator at this time. It is my pleasure to turn the floor over to your host she way and we served before and you work.

Thank you Dana Thank you and let me remind you that today's call is being recorded a replay of today's call will be made available shortly after the conclusion of the call.

And we start I would like to remind you that certain statements and there are not of historical facts made during the course of this conference call about future events and projected financial results constitute forward looking statements that are made pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act for 1995.

And she knows that the company's actual results may differ materially from those projected in these statements due to a variety of factors affecting the business.

Florida for statements are subject to risks and uncertainties and discussion of the factors that may affect future results is contained in our filings with the U S Securities and Exchange Commission, we undertake no obligation to correct or update any forward looking statements provided net result of new information future events or changes in our expectations.

Joining us on today's call is Michigan, and Joe Corporate Secretary before I walk you through our financial highlights Mr. Jiang will deliver his opening remarks.

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Moving to Q&A.

Hello, everyone and thank you for joining us today in 2020, our revenues and gross margin continued to grow.

Sales in the specialty films increased by 26 point, Europe's here and year over year and accounted for 60 point he percentage of our total revenues for the year.

Gross margin increased by 15, seven percentage points to 46 per cent for the year of 2020.

From 24, 9% in 2019.

We are encouraged by positive trends and revenues and gross margins, which we expect us to enable us to better navigate the industrial and economic landscape per head.

We believe that our focus on innovation and what enabled the company and to expand and use of product applications and attract new clients and expand relationships with existing customers.

Yeah.

Now I'll review highlights of current financial results for the fourth quarter and full year of 2020.

Revenues for the fourth quarter of 2020 revenue were RMB, $86 4 million or U S $13 2 million compared with RMB $86 8 million and fourth quarter of 2019, a decrease of RMB 0.4 million or <unk> <unk> five per cent.

Sales volume accounted for a decrease of RMB too limiting and while the increase of average sales price caused an increase of RMB 2.0.

Sales and specialty films with fourth quarter were RMB, $62 3 million or U S. Non 25 million and 71% of total revenues compared with RMB, <unk> 7 million or it could be for 9% of total revenue and fourth quarter of 2019.

Sales volume accounted for and increased RMB 13 5 million.

Decreased average sales price caused a decrease of RMB $9 million.

Sales in China for the fourth quarter were RMB $80 5 million for U S $12 3 million for <unk>.

And 93, 2% total revenues compared with RMB, 81, 4 million and 93, 8% of put revenues and fourth quarter of 2019.

So as volume accounted for a decrease for RMB $3 3 million and while the increase of average sales price caused an increase of RMB two 4 million.

Obviously yourselves for the fourth quarter.

<unk> had for $9 million or U S and <unk> 9 million or six 8% of total revenues compared with RMB pipeline for millions of six two percentage of total revenues for fourth quarter of 2019.

Sales volume accounted for and increase RMP will play in Germany, and while the decrease of average sales price caused a decrease of RMB 5 million.

Gross profit for the fourth quarter was RMB, $36 5 million or U S pipeline 6 million, representing a gross margin of 42%.

Compared with a gross profit of RMB 31.0 million, representing a gross margin of 35 and 7% for fourth quarter of 2019.

Operating expenses for the fourth quarter were RMB, $60 6 million or U S. And then 3 million compared with RMB 15, 7 million and fourth quarter 2019.

The increase was mainly due to increased loss on impairment of assets held for sale.

Net loss attributable to the company for the fourth quarter was RMB $29 million or U S and $3 2 million compared with net profit attributable to the company of RMB $10 3 million and the fourth quarter of 2019.

Basic and diluted loss per share was RMB six point.

$6.39 or U S 98, compared with basic and diluted profit per share of RMB, $3, and 17 centers and fourth quarter of 2019.

Moving on to full year results during the fiscal year ended.

December 31, 2020, net revenues were RMB, $336 8 million or U S 51, 6 million compared to RMB 335, 6 million in 2019, representing an increase of RMB, one 2 million for zero point and 4%.

The degrees and average sales price caused a decrease of RMB, sharepoint and $5 million, which was more than offset by and an increase of RMB. One 7 million resulted from the increased sales volume.

Gross profit for the year was RMB, 136, and $7 million or U S 21.0 million RMB 83, $6 million and 2019.

Our average unit sales price decreased by <unk>, <unk>, and 2% compared to last year.

<unk> sales costs and decreased by 21% due to the price decrease of raw materials.

Operating expenses during the year were RMB, $115 3 million or U S $17 7 million and increase of the RMB $54 8 million or 96 per cent compared to 2019.

The increase was mainly due to the increase and loss on impairment of assets held for sale.

Net profit attributable to the company for full year. It was RMB 19, 6 million or U S 3.0 million up from a net profit of <unk> 11.

11, $4 million and 2019.

Basic and diluted earnings per share for the year was RMB.

And our U S 92 cents up from profit per share of the RMB.

And to be RMB, and 48, a year ago.

Net cash provided for operating activities was RMB 117 family and our U S 18 million for the year ended December 31st for 'twenty as compared to cash provided by operating activities for you.

EBIT for $4 million for the year ended December 31 2019.

Cash and cash equivalents on December 31st lien and 'twenty was RMB $113 4 million for U S 17, 4 million compared with RMB $60 9 million as of December 31, 2019.

With that and at the channel would be happy to answer your questions are your patients and translate each question and minerals.

Segment.

And we're ready for the Q&A.

Thank you for that.

The floor is now open for questions. If you do have a question. Please press star one.

Price.

And as you will be taken and the order day, where we see is that any time for your question.

Thank you.

From the queue by pressing one again, ladies and gentlemen.

These price.

Keith.

And it doesn't look like we have any and.

Okay.

Again, ladies and gentlemen, if you do have a question. Please press star one.

Yeah.

Okay. There are no incoming questions.

Okay, well and conclusion, we'd like to thank our shareholders for their continued loyalty and support we believe we are well positioned to face the current challenges and are committed to providing value to our shareholders and customers. We will keep you informed of our progress and.

And have a nice day.

Thank you. This concludes today's conference call and thank you for your participation you may disconnect your lines at this time.

And have a great day.

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