Shares of Fuwei Films Co., Ltd. (Nasdaq: FFHL) were trading down 9% Friday afternoon, at $9.02 apiece, after the company reported flat revenue and losses for the fourth quarter.
The Beijing-based maker of biaxial oriented stretch technique (BOPET) plastic films, said in the three months through December its revenues hit $13.2 million compared with $13.3 million a year ago. Net loss was $3.2 million in contrast to a net income of $1.59 million in the same period of 2019.
However, management noted some positive trends. “We are encouraged by positive trends in revenues and gross margins which we expect to enable us to better navigate the industrial and economic landscape ahead. We believe that our focus on innovation will enable the Company to expand end-user product applications and attract new clients and expand relationships with existing customers,” said Lei Yan, the chief executive officer of Fuwei.
For the full year, Fuwei reported revenues of $51.6 million, representing an increase of 0.4% year-over-year.
In March, the company announced that it has entered into a securities purchase agreement with Enesoon New Energy. The agreement will result in the issuance by the company of 111 million new ordinary shares in exchange for all outstanding shares of Enesoon. As a result of this transaction, the former shareholders of Enesoon will beneficially own in the aggregate approximately 97.1% of Fuwei's outstanding shares.
Established in 2004, Fuwei uses BOPET films to package food, medicine, cosmetics, tobacco, and alcohol and the imaging, electronics, and magnetic products sectors. The company exports its products to customers and distributors in the U.S., Canada, Japan, and Southeast Asia.