Fuwei Films Announces Result of the Open Bidding to Sell the Dornier Production Line

Rhea-AI Summary

Fuwei Films (Holdings) Co., Ltd. (Nasdaq: FFHL) announced the successful sale of its Dornier production line through an open bidding process. Huizhou Yidu Yuzheng Digital Technology Co. LTD. won the bid at RMB138.0 million (approximately US$21.07 million). This sale signals a strategic move by the company to streamline operations and reallocate resources. Fuwei Films specializes in manufacturing high-quality BOPET plastic films, widely used across various industries including food, electronics, and medicine.

Positive

• Successful sale of Dornier production line for RMB138.0 million (US$21.07 million) indicates effective asset management.

Negative

• None.

BEIJING, Dec. 23, 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 that the open bidding previously initiated by the Company to sell its Dornier production line (also known as the third production line) resulted in a successful bid. According to publicly available information, Huizhou Yidu Yuzheng Digital Technology Co. LTD. ("Huizhou Yidu Yuzheng"), won the bidding at a price of RMB138.0 million (or approximately US$21.07 million).

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: +1-646-824-2857
Email: shiwei.yin@grayling.com

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SOURCE Fuwei Films (Holdings) Co., Ltd.

FAQ

What is the recent news about Fuwei Films (FFHL)?

Fuwei Films announced the successful sale of its Dornier production line, won by Huizhou Yidu Yuzheng for RMB138.0 million (US$21.07 million).

Who bought the Dornier production line from Fuwei Films?

The Dornier production line was purchased by Huizhou Yidu Yuzheng Digital Technology Co. LTD.

How much did Fuwei Films sell the Dornier production line for?

The Dornier production line was sold for RMB138.0 million, approximately US$21.07 million.

What products does Fuwei Films manufacture?

Fuwei Films manufactures high-quality BOPET plastic films used in packaging for food, electronics, and medical industries.