Fuwei Films Announces Results of Extraordinary General Meeting in 2021

Rhea-AI Summary

Fuwei Films held an Extraordinary General Meeting on Aug. 26, 2021, with approximately 73.7% of shareholders present. Key decisions included issuing 111,111,111 shares to acquire Enesoon New Energy Limited and raising authorized share capital from US$2,595,040 to US$70,066,080. The company aims to satisfy closing conditions in the Securities Purchase Agreement dated March 31, 2021. Fuwei Films specializes in BOPET films, serving various industries including food and electronics.

Positive

• Acquisition of Enesoon could enhance product offerings and market reach.
• Share capital increase supports potential expansion and financing needs.

Negative

• Risks associated with oversupply in the BOPET film market could pressure margins.
• Uncertainties from international trade dynamics may impact operations.

BEIJING, Aug. 26, 2021 /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 an Extraordinary General Meeting of Shareholders (the "EGM") was held today, at 10:00 a.m. (Beijing Time) at Fuwei Films (Shandong) Co., Ltd., No. 387 Dongming Road, Weifang, Shandong, China.

Holders of approximately 73.7% of the Company's outstanding shares, as of the record date, July 27, 2021, were present in person or represented by proxy at the Meeting and approved (1) the issuance of 111,111,111 ordinary shares of par value of US$0.519008 each of the Company to the shareholders of Enesoon New Energy Limited, a company incorporated under the laws of the British Virgin Islands ("Enesoon") in exchange for all issued shares of Enesoon; (2) the authorised share capital of the Company be increased from US$2,595,040 divided into 5,000,000 ordinary shares of US$0.519008 each to US$70,066,080 divided into 135,000,000 ordinary shares of US$0.519008 each; and (3) the directors of the Company are hereby authorised to do all acts and things considered by them to be necessary or desirable in connection with the implementation the forgoing resolutions.

Completion of the transactions stated in the securities purchase agreement dated 31 March 2021 (as amended) (the "Securities Purchase Agreement") made among by the Company, Enesoon, and certain other parties thereto is subject to the satisfaction or waiver of the closing conditions set forth in Securities Purchase Agreement. The Company will work with the other parties to the Securities Purchase Agreement towards satisfying the closing conditions and complete the transactions in a timely manner.

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's 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 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, 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 effect of the announcement of the transaction with Enesoon on the ability of the Company to retain and hire key personnel and maintain relationships with customers, suppliers and others with whom the Company or Enesoon do business, or on the Company's or Enesoon's operating results and business generally; risks that the transaction disrupts current plans and operations and the potential difficulties in employee retention as a result of the transaction; the ability of the parties to consummate the proposed transaction on a timely basis or at all; the satisfaction of the conditions precedent to consummation of the proposed transaction, at all or in a timely manner; and business disruption following the transaction. 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.

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SOURCE Fuwei Films

FAQ

What did Fuwei Films approve at the EGM on Aug. 26, 2021?

Fuwei Films approved the issuance of 111,111,111 shares to acquire Enesoon New Energy Limited and increased its authorized share capital.

How much was Fuwei Films' authorized share capital increased to?

Fuwei Films' authorized share capital was increased from US$2,595,040 to US$70,066,080.

What percentage of shareholders participated in the Fuwei Films EGM?

Approximately 73.7% of the Company's outstanding shares were represented at the Fuwei Films EGM.

What industry does Fuwei Films operate in?

Fuwei Films operates in the high-quality BOPET plastic films industry, serving sectors such as food and electronics.