Updated: Fuwei Reports 15% Annual Growth Increase; Shares Rise
(Updated with stock change on the morning after the release of Fuwei&`#`39;s annual report)
Fuwei Films (Holdings) Ltd. (Nasdaq: FFHL) announced its final quarter and annual financial results for 2017, showing its fourth quarter net loss diminished 43 percent and revenue rose 11 percent, compared with the same period of 2016.
The shares of the company, which makes BOPET plastic films and is based in Shandong, reached a high of $3.55 per American depositary share in early trading, 13 percent up from its closing price on Monday. Fuwei is currently trading at $3.29 per share.
The company's revenue for the final quarter of 2017 increased by 11 percent to $12.1 million, compared with $10.9 million a year ago. Overall, Fuwei saw a gain in annual revenue of nearly 15 percent to $44.7 million.
The net loss for the fourth quarter was $1.6 million, or 48 cents per share, compared with $2.7 million, or 83 cents per share in the same quarter of 2016.
"We continue to face strong competition from emerging and incumbent players which created oversupply relative to demand in the marketplace in 2017. While this has impacted the Company&`#`39;s financial results, we are pleased to announce that our sales volume for specialty films has continuously increased," said chairman and chief executive officer of Fuwei, Zengyong Wang.
Fuwei products include printing and stamping film, aluminum plating, heat-sealable, and laser holographic films, of which stamping and transfer film makes the most sales, as shown above. The company plans to continue to expand its products to different market sectors, such as electronics industries.
Wang expressed optimism about the company's future expansion. "We believe that our focus on continued innovation and R&D will enable the company to expand end-user applications and our high-end specialty films, while increasing the product portfolio," he said.
Following the release of the annual report, Fuwei peaked in early trading, now at $3.29 per share.
(Source: Thomson Reuters Eikon)