Fuwei Films (Holdings) Co., Ltd. (FFHL) is up 1.59% in the after-hours trading session at the price of $10.20 after the release of financial results for the second quarter of 2021.
FFHL Announced Financial Results for the Second Quarter of 2021
On 2nd September 2021, FFHL announced unaudited financial results for the second quarter and the first six months ended on 30th June 2021. FFHL conducts its business through its wholly-owned subsidiary, Fuwei Shandong Co., Ltd. It develops, manufactures, and distributes high-quality plastic films using the biaxially oriented stretch technique.
Second Quarter 2021 Financial Highlights
FFHL reported net sales of RMB100.6 million (US$15.6 million) for the second quarter ended 30th June 2021. Net sales were RMB82.9 million during the same quarter in 2020. It represents a year-over-year increase of RMB17.7 million or 21.4%. The rise in average sales price caused a year-over-year increase of RMB15.6 million and higher sales volume caused an increase of RMB2.1 million. Gross profit for the second quarter ended 30th June 2021 was RMB39.9 million (US$6.2 million). It represents a gross profit rate of 39.6%, as compared to a gross profit rate of 41.6% for the same quarter in 2020.
Operating expenses for the second quarter ended 30th June 2021 were RMB14.0 million (US$2.2 million). Operating expenses were RMB18.7 million for the second quarter in 2020. The drop resulted from a decrease in accrual depreciation of the third production line and trial production line. Net profit attributable to the company during the second quarter of 2021 was RMB19.8 million (US$3.1 million). Net profit attributable to the company was RMB14.1 million during the same period of 2020.
Financial Results for the Six Months Ended 30th June 2021
FFHL announced net sales of RMB202.2 million (US$31.3 million) for the six months ended on 30th June 2021. Net sales were RMB166.1 million for the same period in 2020. It represents an increase of RMB36.1 million or 21.7%. The rise in average sales price caused an increase of RMB22.0 million and the increase in the sales volume caused an increase of RMB14.1 million. The gross profit was RMB82.3 million (US$12.7 million) for the first six months ended 30th June 2021. It represents a gross margin rate of 40.7%, compared to a gross margin rate of 38.7% for the same period in 2020.
Operating expenses for the six months ended 30th June 2021 were RMB24.4 million (US$3.8 million). The operating expenses were RMB33.8 million in the same period in 2020, 27.8% lower than the same period in 2020. This drop resulted from a decrease in accrual depreciation of the third production line and trial production line. Net income attributable to the company during the first half of 2021 was RMB51.2 million (US$7.9 million). Net income attributable to the company was RMB27.0 million during the same period in 2020. It represents an increase of RMB24.2 million from the same period in 2020 due to the factors explained above.
