Q2 2021 Fuwei Films (Holdings) Co Ltd Earnings Call
Call all lines have been placed on a listen only mode and the floor will be opened for questions and comments following the presentation.
If you should require assistance throughout the conference. Please press star zero on your telephone keypad to reach a live operator at this time. It is my pleasure to turn the floor over to your host schwinn, Sir the floor is yours.
Thank you Curt let me remind you that today's call is being recorded you recall.
A replay of today's call will be made available shortly after the conclusion of today's call before we start I would like to remind you that certain statements that are not.
Historical facts major in 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 of 1995.
You should note that the company's actual results may differ materially from those projected in these statements due to a variety of factors affecting the business forward looking statements are subject to risks and uncertainties discussion of 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 as a result of new information future events or changes in our expectations.
Joining us today on the call is Mr. Yong Jiang corporate Secretary before I walk you through our financials, Mr. Jiang will deliver his opening remarks, Sir. Please go ahead.
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Hello, everyone and thank you for joining US today, we are continuing to achieve positive trends in our mix of sales, especially sales in specialty films, which accounted for 16, 6% of our total revenues for the second quarter ended June 32001, we believe these results benefited from our commitment to innovation and differentiated marketing strategy, which.
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We will carry on with these efforts and expect that they will enable the company to capitalize on new opportunities despite challenging industry and economic conditions.
No I agree to you highlights of our financial results for the second quarter or first six months.
Net sales during the second quarter were RMB 106 million U S $21.0 million compared to RMB $91.0 million. During the same period in 2020, representing a year over year increase of RMB, $24.0 million or 21, 4%.
The increase in the average sales price caused a year over year increase of RMB $21.0 million in higher sales volume caused an increase of RMB $3.0 million.
In the second quarter sales in specialty films were RMB 69.0 million U S $17.0 million or 68, 6% of our total revenue as compared to RMB 48, 1 million or 50, 810% in the same period of 2020.
Which was an increase of RMB $29.0 million or 43, 5% as compared to the same period in 2020 the.
The increase in sales volume caused an increase of RMB 16.0 million, increasing the average sales price caused an increase of RMB four 9 million.
Overseas sales were RMB, $17.0 million or U S $3.0 billion.
For a 13, 3% of total revenues compared with RMB, seven 5 million or nine 1% over total revenue in the second quarter of 2020. The increase of average sales price caused an increase of RMB <unk> 6 million and the increase in sales volume resulted in an increase of RMB five 3 million.
Gross profit was RMB $48.0 million U S $8.0 million for the second quarter, representing a gross profit rate of 39, 6% as compared to a gross profit rate of 41, 6% for the same period in 2020.
Operating expenses for the second quarter were RMB 14.0 million U S $4.0 million as compared to RMB $25.0 million for the same period in 2020.
This decrease was mainly due to the decrease of accrued depreciation of a third production line in trial production line as these two production lines were sold.
Net profit attributable to the company during the second quarter was RMB $27.0 million U S. A $4.0 billion, while net profit attributable to the company was RMB 14.1 billion during the same period in 2020.
Now moving on to first six months results net sales during the first six months were RMB $204.0 million U S $34.0 million compared to RMB $167.0 million in the same period in 2020, representing an increase of RMB $37.0 million or 21, 7%.
The increase in average sales price caused an increase of RMB 22.0 million as the increase in the sales volume caused an increase of RMB $14.1 million.
And the first six months it shows a especially the drums were RMB $142.0 million U S $27.0 million or 66, 2% of our total revenues as compared to RMB 88.0 million or 53.0% in the same period of 2020.
Which was an increase of RMB $54.0 million or 52, 2% as compared to the same period in 2020.
The increase in sales volume caused an increase of RMB $47.0 million as the increase in average sales price caused an increase of RMB $7.0 million.
Or we see sales during the first six months were RMB $26.0 million or U S $8.0 million or 11, 1% of total revenues compared with RMB $16.0 million or 810% of total revenues in the same period in 2020.
This was RMB nine 1 billion higher than the same period in 2020.
The increase in sales volume resulted in an increase of RMB eight 1 million, while higher average sales price caused an increase of RMB one point in Europe.
Our gross profit was RMB $85.0 million U S $19.0 million for the first six months ended June 32021.
Representing a gross margin rate of 47% as compared to a gross margin rate of 38, 7% for the same period in 2020.
Operating expenses for the first six months were RMB $28.0 million $11.0 million compared to RMB 33, 8 million in same period in 2020, which was RMB $13.0 million or 27, 8% lower than the same period in 2020.
This decrease was mainly due to decrease of accrued depreciation of their production line and trial production lines.
Net income attributable to the company during the first half of 2021 was RMB $53.0 million U S $16.0 million compared to net income attributable to the company of RMB 27.0 million. During the same period in 2020, representing an increase of RMB $26.0 million from the same period in 2020 due to the factors described.
Above.
Cash cash equivalent and restricted cash totaled RMB $177.0 million U S..27, 3 million as of June 32021, total shareholders' equity was RMB 279.0 million U S $45.0 million.
In conclusion, we would 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 on our progress.
With that management would be happy to answer your questions Cat. Please begin the Q&A.
Thank you the floor is now open for questions. If you do have a question you May press star one on your telephone keypad at this time.
If your question has been answered you could remove yourself from the queue by pressing one.
Again, ladies and gentlemen, Thats star one to ask a question on the phone. Please hold while we poll for questions.
Okay.
Juan.
And it appears there are no questions at this time I would now like to turn the floor back over to management.
Yeah.
Thank you for joining us on the conference call today, we look forward to being in touch with you and keep you updated about our progress. Thank you and have a great day.
Okay.
Thank you. This does conclude today's conference. We thank you for your participation you may disconnect. Your lines at this time and have a wonderful day.
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