Contact Information: For further information, please contact: In China: Maggie Huang Investor Relations Manager Phone: +86-10-6852-2612 Email: fuweiIR@fuweifilms.com In the U.S.: Leslie Wolf-Creutzfeldt Investor Relations Graying Tel: +1-646-284-9472 Email: leslie.wolf-creutzfeldt@us.grayling.com
Fuwei Films Announces Receiving RMB 10 Million in Additional Financial Support From Chinese Government
| Source: Fuwei Films
BEIJING--(Marketwire - December 3, 2009) - Fuwei Films (Holdings) Co. Limited (NASDAQ : FFHL )
("Fuwei Films" or the "Company"), a manufacturer and distributor of
high-quality BOPET plastic films located in China, today announced that its
wholly owned subsidiary -- Fuwei Films (Shandong) Co. Ltd. ("Shandong
Fuwei") recently received RMB 10 million financial support in the form of a
loan from the local Chinese government.
Since 2008, Chinese companies have been adversely impacted by the global
financial crisis. In response to the economic conditions in China, the
Chinese government has introduced a series of stimulus packages. In
November 2009, the Company received the RMB 10 million financial support
after completing the necessary procedures with the local Chinese
government. Shandong Fuwei is one of the two companies in the Weifang
High-tech Area which has acquired this financial support from the
government. Shandong Fuwei is planning to use this project fund in
accordance with the needs of the company.
This financial support is an eight-year long-term loan with an interest
rate of 5.346% and equal installments of RMB 3.3 million to be paid within
3 years prior to the expiration of the loan.
"We are glad that our subsidiary has been awarded the financial support
from the local Chinese government. We believe that this long term loan
demonstrates the Chinese government's endorsement in the long-term outlook
of Fuwei Films," said Mr. Xiaoan He, the chairman and CEO of Fuwei Films.
"We will continue to commit ourselves to the operation of the Company and
enhance the equity of the shareholders."
About Fuwei Films
Fuwei Films conducts its business through its wholly owned subsidiary
Shandong Fuwei Films 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 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 some of which are among other things,
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 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.