Fuwei Films Announces Majority Ownership Transfer

Rhea-AI Summary

Fuwei Films (Holdings) Co., Ltd. (Nasdaq: FFHL) announced a significant ownership transfer of its 52.9% controlling shares from Shandong SNTON Group to Shanghai Meicheng Enterprise Management Co., Ltd. This transfer was part of SNTON Group's asset reorganization effective June 23, 2020. Shanghai Meicheng, based in Shanghai, is engaged in diverse investments, including new materials and smart city technologies. The transfer could enhance strategic direction for Fuwei Films, which specializes in high-quality BOPET plastic films used across various industries.

Positive

• Ownership transfer may lead to improved strategic direction under new management.
• Shanghai Meicheng's diversified investment background could provide new opportunities for growth.

Negative

• The transfer introduces uncertainty regarding future profitability and management strategies.
• Potential risks associated with changes in executive leadership and operational direction.

BEIJING, July 2, 2020 /PRNewswire/ -- Fuwei Films (Holdings) Co., Ltd. (Nasdaq: FFHL, "Fuwei" or the "Company"), a manufacturer and distributor of high-quality BOPET plastic films in China, today announced the Company received a notification from Shanghai Meicheng Enterprise Management Co., Ltd., ("Shanghai Meicheng") with respect to an ownership transfer from Shandong SNTON Group Co., Ltd. (the "SNTON Group") to Shanghai Meicheng of the Company's 52.9% controlling outstanding ordinary shares (the "Shares").

SNTON Group held the Shares indirectly through an intermediate holding company, Hongkong Ruishang International Trade Co., Ltd. ("Hongkong Ruishang"). It is noted that SNTON Group transferred its equity in Hongkong Ruishang to Shanghai Meicheng on June 23, 2020, due to SNTON Group's asset reorganization. As a result of this transfer, Shanghai Meicheng now indirectly owns the Shares through Hongkong Ruishang. Hongkong Ruishang in turn holds the Shares through Apex Glory Holdings Limited, a British Virgin Islands corporation.

Shanghai Meicheng is a diversified investment management company located in the Yuhaitang Science and Technology Park of Chongwen District in Shanghai, P.R. China. Its area of investment includes new material, smart city, new energy, culture and entertainment.

About Fuwei Films

Fuwei Films conducts its business through its wholly owned subsidiary, Fuwei Films (Shandong) Co., Ltd. ("Fuwei Shandong"). Fuwei Shandong develops, manufactures and distributes high-quality plastic films using the biaxial oriented stretch technique, otherwise known as BOPET film (biaxially oriented polyethylene terephthalate). Fuwei Films' BOPET film is widely used to package 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 are 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 both the short and long-term effects of the global financial crisis on the Company and the BOPET film industry; competition in the BOPET film industry; growth of, and risks inherent in, the BOPET film industry in China; uncertainty as to future profitability 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 around coronavirus (COVID-19) outbreak and the effects of government and other measures seeking to contain its spread, 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. Actual results of our operations may differ materially from information contained in the forward-looking statements as a result of the risk factors.

For more information, please contact:

In China:

Xiaoli Yu
Investor Relations Officer
Phone: +86-133-615-59266
Email: fuweiIR@fuweifilms.com

In the U.S.:

Shiwei Yin
Investor Relations
Grayling
Phone: +1-646-284-9474
Email: shiwei.yin@grayling.com

View original content:http://www.prnewswire.com/news-releases/fuwei-films-announces-majority-ownership-transfer-301087446.html

SOURCE Fuwei Films (Holdings) Co., Ltd.

FAQ

What is the significance of the ownership transfer for Fuwei Films (FFHL)?

The transfer of 52.9% controlling shares to Shanghai Meicheng may introduce new strategic directions, impacting future operations.

When did the ownership transfer of Fuwei Films occur?

The ownership transfer was effective on June 23, 2020.

Who is the new majority owner of Fuwei Films?

The new majority owner is Shanghai Meicheng Enterprise Management Co., Ltd.

How might the transfer affect Fuwei Films' stock performance?

While the transfer could bring new opportunities, it also introduces uncertainties that may affect stock performance.

What industries utilize Fuwei Films' products?

Fuwei Films' BOPET films are used in food packaging, medicine, cosmetics, electronics, and more.