Fuwei Films (Holdings) Co., Ltd. (NASDAQ:FFHL) Q2 2019 Earnings Conference Call Transcript

Aug 23, 2019 • 09:00 am ET

Previous

Fuwei Films (Holdings) Co., Ltd. (NASDAQ:FFHL) Q2 2019 Earnings Conference Call Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Fuwei Films' Second Quarter 2019 Earnings Conference Call. [Operator Instructions] At this time, it's my pleasure to turn the floor over to Mr. Shiwei Yin. Sir, the floor is yours.

Executive
Shiwei Yin

Thank you, Tom. Let me remind you that today's call is being recorded, and a replay of the 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 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 of 1995.

You should know 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 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 as a result of new information, future events or changes in our expectations. Joining us on the call today is Mr. Yong Jiang, Corporate Secretary.

Before I walk you through our financial results, Mr. Jiang will deliver his opening remarks and I will translate Mr. Jiang's remarks. Sir, please go ahead.

Executive
Yong Jiang

[Foreign Speech]

Hello, everyone, and thank you for joining us today. We're pleased to return to profitability after years of hard work and believe that the worse maybe behind us. We believe the turnaround was a result of our commitment to differentiated product strategy and continuous R&D. Sales of specialty films continue to increase and accounted for 47.6% of total sales during the quarter compared to 38.6% last year.

Meanwhile, we believe, Research and Development is helping us launch new products and expand the end user applications of our films. Looking ahead, the BOPET film industry remains competitive a result of higher supply. Nevertheless, we will continue to innovate, tackle overseas markets, and execute differentiated product strategy to improve performance and capture opportunities.

Now, Shiwei will read to you our financial results for the second quarter and first six months of 2019. Then, we'll begin the Q&A session.

Executive
Shiwei Yin

Thank you, Mr. Jiang. Our net sales during the second quarter were RMB88.1 million, USD12.8 million compared to RMB79.6 million during the same period in 2018, representing an increase of RMB8.5 million or 10.7%. The increase of average sales price caused an increase of RMB7.4 million and the sales volume increase -- caused an increase of RMB1.1 million.

In the second quarter, sales of specialty films were RMB42.0 million, USD6.1 million or 47.6% of our total revenues as compared to RMB30.7 million or 38.6% in the same period of 2018, which was an increase of RMB11.3 million or 36.8% as compared to the same period in 2018. The increase of average sales