Fuwei Films Announces Maintenance Project to the Second Production Line
Fuwei Films (NASDAQ: FFHL) announced a scheduled maintenance program affecting its second production line, starting July 12, 2022. This maintenance will last approximately 15 days and involves replacing some machine parts to ensure optimal functionality. The decision is aimed at meeting customer needs more effectively. Furthermore, the company faces potential risks including PCAOB inspection issues and the possible delisting of shares under the Holding Foreign Companies Accountable Act, which may significantly impact future operations.
- Scheduled maintenance to enhance production line efficiency and product quality.
- Risk of potential delisting under the Holding Foreign Companies Accountable Act if PCAOB continues to be unable to inspect auditors in China.
- Facing significant oversupply in the BOPET film market due to rapid industry growth in China.
- Uncertainty due to ongoing U.S.-China trade tensions and potential anti-dumping duties on BOPET films.
BEIJING, July 11, 2022 /PRNewswire/ -- Fuwei Films (Holdings) Co., Ltd. (NASDAQ: FFHL) ("Fuwei Films" or the "Company"), a manufacturer and distributor of high-quality BOPET plastic films in China, today announced that the Company will conduct a one-time comprehensive maintenance program, which includes replacing some of the machine parts in the second production line (DMT production line) starting from July 12, 2022. The second production line has been operating without a pause for a substantial time, making this decision necessary. The estimated downtime for the maintenance will be 15 days.
Mr. Lei Yan, Chairman and CEO of Fuwei Films, commented, "The maintenance is to ensure the second production line is in good working order and functioning properly so that we can continue to improve and better meet customers' needs for the products."
About Fuwei Films
Fuwei Films conducts its business through its wholly-owned subsidiary, Fuwei Films (Shandong) Co., Ltd. ("Shandong Fuwei"). Shandong Fuwei develops, manufactures, and distributes high-quality plastic films using the biaxial-oriented stretch technique, otherwise known as BOPET film (biaxially-oriented polyethylene terephthalate). Fuwei's BOPET film is widely used for packaging food, medicine, cosmetics, tobacco, and alcohol, as well as in the imaging, electronics, and magnetic products industries.
Safe Harbor
This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is subject to risks. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the U.S. Securities and Exchange Commission which, among other things, include negative impacts of the determination of the U.S. Securities and Exchange Commission that the Public Company Accounting Oversight Board ("PCAOB") is currently unable to inspect our auditor in relation to their audit work and the potential that our ordinary shares will be prohibited from trading in the United States under the Holding Foreign Companies Accountable Act ("HFCAA") in 2024 if the PCAOB is unable to inspect or fully investigate auditors located in China, or 2023 if proposed changes to the law are enacted, the significant oversupply of BOPET films resulting from the rapid growth of the Chinese BOPET industry capacity, changes in the international market and trade barriers, especially the uncertainty of the antidumping investigation and imposition of an anti-dumping duty on imports of the BOPET films originating from the People's Republic of China ("China") conducted by certain countries; uncertainty around coronavirus (COVID-19) outbreak and the effects of government and other measures seeking to contain its spread, potential delisting of our ordinary shares under the Holding Foreign Company Affordable Act if the US Public Company Accounting Oversight Board is unable to inspect our auditors located in China, uncertainty around U.S.-China trade war and its effect on the Company's operation, fluctuations of the RMB exchange rate, and our ability to obtain adequate financing for our planned capital expenditure requirements; uncertainty as to our ability to continuously develop new BOPET film products and keep up with changes in BOPET film technology; risks associated with possible defects and errors in our products; uncertainty as to our ability to protect and enforce our intellectual property rights; uncertainty as to our ability to attract and retain qualified executives and personnel; and uncertainty in acquiring raw materials on time and on acceptable terms, particularly in view of the volatility in the prices of petroleum products in recent years. The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release. The actual results of our operations may differ materially from the information contained in the forward-looking statements due to the risk factors.
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SOURCE Fuwei Films
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