Fuwei Films (Holdings) Co., Ltd. (NASDAQ:FFHL) Q1 2019 Earnings Conference Call Transcript

Jun 27, 2019 • 09:00 am ET

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Fuwei Films (Holdings) Co., Ltd. (NASDAQ:FFHL) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Greetings. Welcome To The Fuwei Films First Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) Please note, this conference is being recorded.

I would now like to turn the conference over to your host, Shiwei Yin. Mr. Yin, you may begin.

Executive
Shiwei Yin

Thank you, Mark. Let me remind you today that today's call is being recorded and replay of this call will be made available shortly after the conclusion of today's call. Before we start I would like to remind you also that certain statements that are not of 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 Security Litigation Reform Act of 1995.

As you know that the company's actual results may differ materially from those projected in these statements due to a variety of factors affecting our 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 US 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 on today's call is as Mr. Yong Jiang, Corporate Secretary. Before I walk you through our financials, Mr. Jiang will deliver his opening remarks and I will translate Mr. Jiang remarks. Sir, please go ahead. (Foreign Language)

Executive
Yong Jiang

(Foreign Language)

Hello everyone and thank you for joining us today. While we continue to face headwinds due to oversupply in the marketplace, we are encouraged by continued positive trends in overall sales. Sales of specialty films and improvement in gross margin. We believe our commitment to innovation in R&D expanded the end-user applications of our films that will enable the company to capitalize on new opportunities, despite challenging industry and economic conditions.

Now, Shiwei will read through our financial results for the first quarter of 2019, then I'll begin the Q&A session.

Executive
Shiwei Yin

Thank you, Mr. Jiang. I will now provide you with an overview of our key financial numbers in the first quarter of 2019. Net sales during the first quarter ended March 31, 2019 were RMB81.1 million, US$12.1 million compared to RMB76.9 million, during the same quarter in 2018, representing an increase of RMB4.2 million, or 5.5%, mainly due to the increase in sales price.

In the first quarter 2019, sales of specialty films were RMB32.2 million, US $4.8 million or 39.7% of our total revenues as compared to RMB32.9 million or 42.8% in the same period of 2018. The decrease was mainly due to decreased in sales volume. Overseas sales were RMB16.2 million or US 2.4 million or 20.0% of total revenues compared with RMB11.0 million or 14.3% of total revenues in first quarter of 2018, representing an increase of RMB5.2 million or 47.3%.

Higher sales volume