Business News

Fuwei Films Announces Expectations for the Fourth Quarter of 2008

Monday 26. January 2009 - Fuwei Films (Holdings) Co., Ltd. (NASDAQ:FFHL) ("Fuwei" or the "Company"), a manufacturer and distributor of high-quality BOPET plastic films located in China, today announced its preliminary financial results for its 2008 fourth quarter ended December 31, 2008.

For the fourth quarter of 2008, revenue is expected to be up to $15 million. The fourth quarter net loss is expected to be up to $1.2 million.

Since October 2008, Fuwei has been impacted by the global recession. Reduced demand, especially for high value-added specialty films, has resulted in a significant increase in inventory and a decline in sales prices. The leased production line has been suspended for two months in the fourth quarter of 2008 which reflected current market conditions. The Company has also temporarily closed its marketing office in Japan.

“Our expectations reflect a difficult and challenging marketplace for BOPET films globally. We have adopted measures that are expected to minimize the adverse affect of the financial crisis, such as reducing costs, lowering management expenses and marketing expenditures,” Mr. Xiaoan He, Chairman and CEO of Fuwei Films commented. “We hope that the governments’ stimulus plans around the world will start to take effect sooner than expected. We are confident and expect to maintain the Company’s industry leadership. With the recovery of the macro economic environment, we believe we will be one of the first companies to regain continued growth, and we expect to acquire new and more exciting opportunities in both domestic and overseas markets.”