Business News

Fuwei Films Designated High-and-New Tech Enterprises by Shandong Province

Thursday 12. February 2009 - Fuwei Films (Holdings) Co. Limited (NASDAQ:FFHL) ("Fuwei" or "the Company"), a manufacturer and distributor of high-quality BOPET plastic films located in China, today announced that Fuwei Films (Shandong) Co., Ltd. ("Fuwei Shandong"), the Company's wholly owned operating subsidiary, received the High-and-New Tech Enterprise ("HNTE") designation from the Shandong Department of Science and Technology, National and Local Taxation Bureau of Shandong Province, as well as from the Shandong Province Financial Bureau.

As the newly designated HNTE, Fuwei Shandong is entitled to a tax rate of 15%, rather than the general statutory tax rate of 25%.

“It’s an honor to be among one of the few companies that have been designated as HNTEs in Shandong,” said Mr. Xiaoan He, Chairman and CEO of Fuwei. “We believe that our new preferential tax rates, combined with the central and local governments’ stimulus packages, will help us to increase our profitability by bringing down our costs and raising the customers’ demand in the marketplace.”

Previously, Fuwei Shandong had been an HNTE in Shandong Province. Because of China’s new Enterprise Income Tax Law which became effective on January 1, 2008, the status Fuwei Shandong as an HNTE had to be renewed. Today’s re-designation entitles Fuwei Shandong to enjoy the preferential status retroactively as of January 1, 2008 until the expiration of the designation in 2011.