Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document and Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Fuwei Films (Holdings), Co. Ltd. |
Entity Central Index Key | 0001381074 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Trading Symbol | FFHL |
Entity Common Stock, Shares Outstanding | 3,265,837 |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Interactive Data Current | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Current assets | |||
Cash and cash equivalents | $ 8,744 | ¥ 60,871 | ¥ 8,908 |
Restricted cash | 3,663 | 25,500 | 38,000 |
Accounts and bills receivable, net | 3,873 | 26,960 | 22,627 |
Inventories | 3,388 | 23,584 | 24,675 |
Advance to suppliers | 902 | 6,277 | 5,694 |
Prepayments and other receivables | 152 | 1,058 | 1,068 |
Deferred tax assets - current | 182 | 1,266 | 1,195 |
Total current assets | 20,904 | 145,516 | 102,167 |
Property, plant and equipment, net | 43,472 | 302,642 | 331,168 |
Construction in progress | 0 | 0 | 366 |
Lease prepayments, net | 2,264 | 15,762 | 16,296 |
Advance to suppliers - long term, net | 221 | 1,542 | 1,542 |
Deferred tax assets - non current | 73 | 509 | 3,143 |
Total assets | 66,934 | 465,971 | 454,682 |
Current liabilities | |||
Short-term borrowings | 9,337 | 65,000 | 64,950 |
Due to related parties | 17,136 | 119,297 | 114,692 |
Accounts payables | 2,806 | 19,532 | 20,750 |
Notes payable | 5,889 | 41,000 | 48,000 |
Advance from customers | 748 | 5,204 | 1,859 |
Accrued expenses and other payables | 783 | 5,454 | 5,072 |
Total current liabilities | 36,699 | 255,487 | 255,323 |
Deferred tax liabilities | 329 | 2,290 | 2,528 |
Total liabilities | 37,028 | 257,777 | 257,851 |
Shareholders' equity | |||
Registered capital (of US$0.519008 par value; 5,000,000 shares authorized; 3,265,837 issued and outstanding) | 1,914 | 13,323 | 13,323 |
Additional paid-in capital | 44,803 | 311,907 | 311,907 |
Statutory reserve | 5,378 | 37,441 | 37,441 |
Retained earnings | (22,310) | (155,317) | (166,680) |
Cumulative translation adjustment | 121 | 840 | 840 |
Total shareholders' equity | 29,906 | 208,194 | 196,831 |
Total equity | 29,906 | 208,194 | 196,831 |
Total liabilities and equity | $ 66,934 | ¥ 465,971 | ¥ 454,682 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
CONSOLIDATED BALANCE SHEETS | ||
Registered capital, Par or Stated Value Per Share (in dollars per share) | $ 0.519008 | $ 0.519008 |
Registered capital, Shares Authorized | 5,000,000 | 5,000,000 |
Registered capital, Shares, Issued | 3,265,837 | 3,265,837 |
Registered capital, shares outstanding | 3,265,837 | 3,265,837 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | ||||
Net sales | $ 48,209 | ¥ 335,620 | ¥ 333,522 | ¥ 290,706 |
Cost of sales | 36,199 | 252,010 | 278,834 | 263,606 |
Gross profit | 12,010 | 83,610 | 54,688 | 27,100 |
Operating expenses: | ||||
Selling expenses | 1,971 | 13,721 | 13,363 | 14,520 |
Administrative expenses | 6,722 | 46,794 | 52,593 | 46,514 |
Loss on impairment of assets | 0 | 0 | 0 | 0 |
Total operating expenses | 8,693 | 60,515 | 65,956 | 61,034 |
Operating income (loss) | 3,317 | 23,095 | (11,268) | (33,934) |
Other income (expense): | ||||
- Interest income | 159 | 1,106 | 1,225 | 725 |
- Interest expense | (1,277) | (8,892) | (9,766) | (9,453) |
- Others income (expense), net | (233) | (1,621) | 1,255 | (2,533) |
Total other income (expense) | (1,351) | (9,407) | (7,286) | (11,261) |
Income (loss) before provision for income taxes | 1,966 | 13,688 | (18,554) | (45,195) |
Income tax (expense) benefit | (334) | (2,325) | (3,618) | (808) |
Net income (loss) | 1,632 | 11,363 | (22,172) | (46,003) |
Net income (loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to the Company | 1,632 | 11,363 | (22,172) | (46,003) |
Other comprehensive income (loss): | ||||
- Foreign currency translation adjustments attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
- Foreign currency translation adjustments attributable to the Company | 0 | 0 | (2,026) | 1,821 |
Comprehensive income (loss) attributable to non-controlling interest | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attribute to the Company | $ 1,632 | ¥ 11,363 | ¥ (24,198) | ¥ (44,182) |
Net earnings (loss) per share, Basic and diluted | (per share) | $ 0.50 | ¥ 3.48 | ¥ (6.79) | ¥ (14.09) |
Weighted average number ordinary shares, Basic and diluted | 3,265,837 | 3,265,837 | 3,265,837 | 3,265,837 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY ¥ in Thousands, $ in Thousands | Ordinary Shares [Member]USD ($)shares | Ordinary Shares [Member]CNY (¥)shares | Additional Paid-in Capital [Member]USD ($) | Additional Paid-in Capital [Member]CNY (¥) | Statutory Reserve [Member]USD ($) | Statutory Reserve [Member]CNY (¥) | Retained Earnings [Member]USD ($) | Retained Earnings [Member]CNY (¥) | Accumulated Other Comprehensive Income (Loss) [Member]USD ($) | Accumulated Other Comprehensive Income (Loss) [Member]CNY (¥) | Total Shareholders' Equity [Member]USD ($) | Total Shareholders' Equity [Member]CNY (¥) | Non-controlling Interest [Member]USD ($) | Non-controlling Interest [Member]CNY (¥) | USD ($) | CNY (¥) |
Balance at Dec. 31, 2017 | ¥ 13,323 | ¥ 311,907 | ¥ 37,441 | ¥ (144,508) | ¥ 2,866 | ¥ 221,029 | ¥ 0 | ¥ 221,029 | ||||||||
Balance, shares at Dec. 31, 2017 | shares | 3,265,837 | 3,265,837 | ||||||||||||||
Net income (loss) | ¥ 0 | 0 | 0 | (22,172) | 0 | (22,172) | 0 | $ (1,632) | (22,172) | |||||||
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | (2,026) | (2,026) | 0 | (2,026) | ||||||||
Balance at Dec. 31, 2018 | ¥ 13,323 | 311,907 | 37,441 | (166,680) | 840 | 196,831 | 0 | 196,831 | ||||||||
Balance, shares at Dec. 31, 2018 | shares | 3,265,837 | 3,265,837 | ||||||||||||||
Net income (loss) | ¥ 0 | 0 | 0 | 11,363 | 0 | 11,363 | 0 | 1,632 | 11,363 | |||||||
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
Balance at Dec. 31, 2019 | $ 1,914 | ¥ 13,323 | $ 44,803 | ¥ 311,907 | $ 5,378 | ¥ 37,441 | $ (22,310) | ¥ (155,317) | $ 121 | ¥ 840 | $ 29,906 | ¥ 208,194 | $ 0 | ¥ 0 | $ 29,906 | ¥ 208,194 |
Balance, shares at Dec. 31, 2019 | shares | 3,265,837 | 3,265,837 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Cash flow from operating activities | |||||
Net income (loss) | $ 1,632 | ¥ 11,363 | $ (1,632) | ¥ (22,172) | ¥ (46,003) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities | |||||
- Loss on Long-term assets impairment | 0 | 0 | 0 | 0 | |
- Depreciation of property, plant and equipment | 5,954 | 41,451 | 44,509 | 42,877 | |
- Amortization of intangible assets | 77 | 534 | 534 | 528 | |
- Deferred income taxes (benefit) | 334 | 2,325 | 3,617 | 808 | |
- Bad debt (recovery) expense | (146) | (1,014) | (620) | (746) | |
- Inventory provision | 214 | 1,489 | 0 | 1,340 | |
Changes in operating assets and liabilities | |||||
- Investment income recorded on Fuwei Holdings' book | 0 | 0 | 0 | 0 | |
- Accounts and bills receivable | (477) | (3,319) | (1,884) | 10,075 | |
- Inventories | (57) | (399) | (96) | (766) | |
- Advance to suppliers | (84) | (583) | (1,796) | 2,145 | |
- Prepaid expenses and other current assets | 1 | 10 | 161 | 75 | |
- Accounts payable | (174) | (1,217) | 3,278 | (3,110) | |
- Accrued expenses and other payables | (43) | (302) | (850) | 128 | |
- Advance from customers | 480 | 3,344 | (117) | (1,533) | |
- Tax payable | 98 | 684 | 817 | 5,009 | |
Net cash provided by (used in) operating activities | 7,809 | 54,366 | 25,381 | 10,827 | |
Cash flow from investing activities | |||||
Purchases of property, plant and equipment | (1,857) | (12,925) | (4,619) | (3,282) | |
Advanced to suppliers - non current | 0 | 0 | 28 | 291 | |
Amount change in construction in progress | 53 | 366 | 0 | 65 | |
Deposit for purchase | 0 | 0 | 0 | 0 | |
Net cash used in (provided by) investing activities | (1,804) | (12,559) | (4,591) | (2,926) | |
Cash flow from financing activities | |||||
Principal payments of bank loans | 0 | 0 | 0 | (3,300) | |
Proceeds from short-term bank loans | 7 | 50 | 14,950 | (10,000) | |
Proceeds from related party | 662 | 4,606 | (36,382) | 19,327 | |
Payment of capital lease obligation | 0 | 0 | 0 | 0 | |
Change in notes payable | (1,005) | (7,000) | (19,900) | (32,988) | |
Net cash provided by (used in) financing activities | (336) | (2,344) | (41,332) | (26,961) | |
Effect of foreign exchange rate changes | (85) | 0 | (2,014) | 1,760 | |
Net increase (decrease) in cash and cash equivalent, restricted cash | 5,584 | 39,463 | (22,556) | (17,300) | |
Cash and cash equivalent,and restricted cash | |||||
At beginning of period/year | 6,823 | 46,908 | 69,464 | 86,764 | |
At end of period/year | 12,407 | 86,371 | $ 6,823 | 46,908 | 69,464 |
SUPPLEMENTARY DISCLOSURE: | |||||
Interest paid | 1,277 | 8,892 | 9,766 | 9,453 | |
Income tax paid | 0 | 0 | 0 | 0 | |
SUPPLEMENTARY SCHEDULE OF NONCASH INVESTING AND FINANCIAL ACTIVITIES: | |||||
Account payable for plant and equipment: | 145 | 1,010 | 1,010 | 1,374 | |
Obligations for acquired equipment under capital lease: | $ 0 | ¥ 0 | ¥ 0 | ¥ 0 |
Principal Activities and Reorga
Principal Activities and Reorganization | 12 Months Ended |
Dec. 31, 2019 | |
Principal Activities and Reorganization | |
Principal Activities and Reorganization | (1) Principal Activities and Reorganization Fuwei Films (Holdings) Co., Ltd and its subsidiaries (the “Company” or the “Group”) are principally engaged in the production and distribution of BOPET film, a high quality plastic film widely used in packaging, imaging, electronics, electrical and magnetic products in the People’s Republic of China (the “PRC”). The Company is a holding company incorporated in the Cayman Islands, established on August 9, 2004 under the Cayman Islands Companies Law as an exempted company with limited liability. The Company was established for the purpose of acquiring shares in Fuwei (BVI) Co., Ltd (“Fuwei (BVI)”), an intermediate holding company established for the purpose of acquiring all of the ownership interest in Fuwei Films (Shandong) Co., Ltd. On August 14, 2013, the Company announced that it had received the first notice from the its controlling shareholder, the Weifang State-owned Assets Operation Administration Company, a wholly-owned subsidiary of Weifang State-owned Asset Management and Supervision Committee (collectively, the “Administration Company”) indicating that the Administration Company had determined to place control over 6,912,503 (or 52.9)% of its outstanding ordinary shares up for sale at a public auction to be held in China. Four public auctions were held in Jinan, Shandong Province, China. The Company learned that they failed due to a lack of bidders registered for the auction. On March 25, 2014, the fifth public auction was held in Jinan, Shandong Province, China. The beneficial ownership of 6,912,503 ordinary shares of the Company previously owned by the Administration Company through Apex Glory Holdings Limited, a British Virgin Islands corporation, was bid by Shandong SNTON Optical Materials Technology Co., Ltd (“Shandong SNTON”) through the public auction. Shandong SNTON got 6,912,503 (or 52.9)% of the Company’s outstanding ordinary shares at a price of RMB101,800 (approximately US$16,573) or approximately US$2.40 per ordinary share. On May 12, 2014, the Company announced that it had learned that the successful bidder, Shandong SNTON in the fifth public auction of 6,912,503 (or 52.9)% of the Company’s outstanding ordinary shares (the “Shares”) held on March 25, 2014, was entrusted by Hongkong Ruishang International Trade Co., Ltd., a Hong Kong corporation, (“Hongkong Ruishang”) to handle all the formalities and procedure in connection with the public auction. As a result of the entrusted arrangement, the Company believes Hongkong Ruishang is the party controlling the Shares acquired in the fifth public auction. According to publicly available information in the People’s Republic of China, Shandong SNTON is a wholly owned subsidiary of Shandong SNTON Group Co., Ltd. (the “SNTON Group”). Mr. Xiusheng Wang, the chairman of the Board of Directors of Shandong SNTON Group Co., Ltd., is also Hongkong Ruishang’s chairman. On May 14, 2014, the Company announced that it received a notification from Shandong Fuhua Investment Company Limited. (“Shandong Fuhua”) with respect to an entire ownership transfer of the Company’s 12.55% outstanding ordinary shares from the Administration Company to Shandong Fuhua. The Administration Company originally held these shares indirectly through an intermediate holding company, Easebright Investments Limited (“Easebright”). As a result of this transfer, Shandong Fuhua indirectly owns 12.55% of the outstanding ordinary shares of the Company through Easebright. Mr. Jingang Yang was appointed as the director of Easebright. Fuwei was informed by Easebright that Mr. Qingxin Dong has been the director of Easebright since 2018. |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
Basis of Presentation | |
Basis of Presentation | (2) Basis of Presentation The Group’s consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), as set forth in the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification (ASC) and we consider the various staff accounting bulletins and other applicable guidance issued by the United States Securities and Exchange Commission (SEC). This basis of accounting differs in certain material respects from that used in the preparation of the books of account of Shandong Fuwei, the Company’s principal subsidiary, which are prepared in accordance with the accounting principles and the relevant financial regulations applicable to enterprises limited by shares as established by the Ministry of Finance of the PRC (“PRC GAAP”), the accounting standards used in the country of its domicile. The accompanying consolidated financial statements reflect necessary adjustments not recorded in the books of account of the Company’s subsidiaries to present them in conformity with U.S. GAAP. |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Practices | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies and Practices | |
Summary of Significant Accounting Policies and Practices | (3) Summary of Significant Accounting Policies and Practices (a) Principles of Consolidation The consolidated financial statements include the financial statements of the Company and its two subsidiaries, including, Fuwei Films (BVI) Co., Ltd., and Fuwei Films (Shandong) Co., Ltd.. All significant intercompany balances and transactions have been eliminated in consolidation. (b) Foreign Currency Transactions The Group’s reporting currency is the Chinese Yuan (“Renminbi” or “RMB”). The Company and Fuwei (BVI) operate in Hong Kong as investment holding companies and their financial records are maintained in Hong Kong dollars, being the functional currency of these two entities. Assets and liabilities are translated into RMB at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and income, expenses, and cash flow items are translated using the average rate for the period. The translation adjustments are recorded in accumulated other comprehensive income in the statements of equity. Transactions denominated in currencies other than RMB are translated into RMB at the exchange rates quoted by the People’s Bank of China (the “PBOC”) prevailing at the dates of transactions. Monetary assets and liabilities denominated in foreign currencies are translated into RMB using the applicable exchange rates quoted by the PBOC at the balance sheet dates. The resulting exchange differences are recorded in the statements of operations. Commencing from July 21, 2005, the PRC government moved the RMB into a managed floating exchange rate regime based on market supply and demand with reference to a basket of currencies. For the convenience of the readers, the RMB amounts for the year of 2019 included in the accompanying consolidated financial statements in our annual report has been translated into U.S. dollars at the rate of US$1.00 = RMB 6.9618, being the noon buy rate for U.S. dollars in effect on December 31, 2019 in the City of New York for cable transfer in RMB per U.S. dollar as certified for custom purposes by the Federal Reserve Bank. No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollar at that rate or at any other certain rate on December 31, 2019, or at any other date. RMB is not fully convertible into foreign currencies. All foreign exchange transactions involving RMB must take place either through the PBOC or other institutions authorized to buy and sell foreign currency. The exchange rate adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC which are determined largely by supply and demand. (c) Cash and Cash Equivalents and Restricted Cash For statements of cash flow purposes, the Company considers all cash on hand and in banks, including certificates of deposit and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents. As of December 31, 2019 and 2018, there were cash and cash equivalents of RMB60,871 (US$8,744) and RMB8,908, respectively. As of December 31, 2019 and 2018, there were restricted cash of RMB25,500 (US$3,663) and RMB38,000, respectively, as deposit in bank for banker’s acceptance bill. (d) Trade Accounts Receivable Trade accounts receivable are recorded at the invoiced amount after deduction of trade discounts, value added taxes and allowances, if any, and do not bear interest. The allowance for doubtful accounts is the Group’s best estimate of the amount of probable credit losses in the Group’s existing accounts receivable. The Group determines the allowance based on historical write-off experience, customer specific facts and economic conditions. The Group reviews its allowance for doubtful accounts monthly. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. All other balances are reviewed on a pooled basis by aging of such balances. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The allowance for doubtful accounts as of December 31, 2019 and 2018 was RMB833 (US120) and RMB1,847, respectively. (e) Inventories Inventories are stated at the lower of cost or market value as of balance sheet date. Inventory valuation and cost-flow is determined using Moving Weighted Average Method basis. The Group estimates excess and slow moving inventory based upon assumptions of future demands and market conditions. If actual market conditions are less favorable than projected by management, additional inventory write-downs may be required. Cost of work in progress and finished goods comprises direct material, direct production cost and an allocated portion of production overheads based on normal operating capacity. (f) Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation and allowance for fixed assets impairment. Depreciation on property, plant and equipment is calculated on the straight-line method (after taking into account their respective estimated residual values) over the estimated useful lives of the assets as follows: Years Buildings and improvements 25 – 30 Plant and equipment 10 – 15 Computer equipment 5 Furniture and fixtures 5 Motor vehicles 5 Depreciation related to abnormal amounts from idle capacity is charged to administrative expenses for the period incurred. Total depreciations for the years ended December 31, 2019, 2018 and 2017 were RMB41,451 (US$5,954), RMB44,509 and RMB42,877 respectively, of which 37.3%, 42.7% and 39.6% was recorded in cost of goods sold and 62.7%, 57.3% and 60.4% was recorded in administrative and selling expenses, respectively. Construction in progress represented capital expenditure in respect of the BOPET productions line. No depreciation is provided in respect of construction in progress. (g) Leased Assets An arrangement, comprising a transaction or a series of transactions, is or contains a lease if the Group determines that the arrangement conveys a right to use a specific asset or assets for an agreed period of time in return for a payment or a series of payments. Such a determination is made based on an evaluation of the substance of the arrangement and is regardless of whether the arrangement takes the legal form of a lease. Classification of assets leased to the Group. Assets that are held by the Group under leases which transfer to the Group substantially all the risks and rewards of ownership are classified as being held under capital leases. Leases which do not transfer substantially all the risks and rewards of ownership to the Group are classified as operating leases. Assets acquired under capital leases. Where the Group acquires the use of assets under capital leases, the amounts representing the fair value of the leased asset, or, if lower, the present value of the minimum lease payments, of such assets are included in property, plant and equipment and the corresponding liabilities, net of finance charges, are recorded as obligations under capital leases. Depreciation is provided at rates which write off the cost or valuation of the assets over the term of the relevant lease or, where it is likely the Group will obtain ownership of the asset, the life of the asset. Finance charges implicit in the lease payments are charged to the consolidated income statement over the period of the leases so as to produce an approximately constant periodic rate of charge on the remaining balance of the obligations for each accounting period. Contingent rentals are charged to the consolidated income statement in the accounting period in which they are incurred. Operating lease charges. Where the Group has the use of assets held under operating leases, payments made under the leases are charged to the consolidated income statement in equal installments over the accounting periods covered by the lease term, except where an alternative basis is more representative of the pattern of benefits to be derived from the leased asset. Lease incentives received are recognized in the consolidated income statement as an integral part of the aggregate net lease payments made. Contingent rentals are charged to the consolidated income statement in the accounting period in which they are incurred. Sale and leaseback transactions. Gains or losses on equipment sale and leaseback transactions which result in capital leases are deferred and amortized over the terms of the related leases. Gains or losses on equipment sale and leaseback transactions which result in operating leases are recognized immediately if the transactions are established at fair value. Any loss on the sale perceived to be a real economic loss is recognized immediately. However, if a loss is compensated for by future rentals at a below-market price, then the artificial loss is deferred and amortized over the period that the equipment is expected to be used. If the sale price is above fair value, then any gain is deferred and amortized over the useful life of the assets. (h) Lease Prepayments Lease prepayments represent the costs of land use rights in the PRC. Land use rights are carried at cost and charged to expense on a straight-line basis over the respective periods of rights of 30 years. The current portion of lease prepayments has been included in prepayments and other receivables in the balance sheet. (i) Goodwill Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Goodwill is not amortized but is tested for impairment annually, or when circumstances indicate a possible impairment may exist. Impairment testing is performed at a reporting unit level. An impairment loss generally would be recognized when the carrying amount of the reporting unit exceeds the fair value of the reporting unit, with the fair value of the reporting unit determined using a discounted cash flow (DCF) analysis. A number of significant assumptions and estimates are involved in the application of the DCF analysis to forecast operating cash flows, including the discount rate, the internal rate of return, and projections of realizations and costs to produce. Management considers historical experience and all available information at the time the fair values of its reporting units are estimated. Goodwill was determined to be fully impaired during the year ended December 31, 2012. (j) Impairment of Long-lived Assets The Company recognizes an impairment loss when circumstances indicate that the carrying value of long-lived assets with finite lives may not be recoverable. Management’s policy in determining whether an impairment indicator exists, a triggering event, comprises measurable operating performance criteria at an asset group level as well as qualitative measures. If an analysis is necessitated by the occurrence of a triggering event, the Company uses assumptions, which are predominately identified from the Company’s strategic long-range plans, in determining the impairment amount. In the calculation of the fair value of long-lived assets, the Company compares the carrying amount of the asset group with the estimated future cash flows expected to result from the use of the assets. If the carrying amount of the asset group exceeds the estimated expected undiscounted future cash flows, the Company measures the amount of the impairment by comparing the carrying amount of the asset group with their estimated fair value. We estimate the fair value of assets based on market prices (i.e., the amount for which the asset could be bought by or sold to a third party), when available. When market prices are not available, we estimate the fair value of the asset group using discounted expected future cash flows at the Company’s weighted-average cost of capital. Management believes its policy is reasonable and is consistently applied. Future expected cash flows are based upon estimates that, if not achieved, may result in significantly different results. Considering the indivisibility of land and plant and the commonality of equipment, staff and technology, we take fixed assets and intangible assests as the group of assets. The accumulated loss on impairment of assets as of December 31,2019 was RMB7,219 (US$1,037), respectively. (k) Revenue Recognition Revenue is recognized when obligations under the terms of a contract with the Company’s customers are satisfied. Satisfaction of contract terms occur when products are delivered, and the customer takes ownership and assumes risk of loss. The amount of consideration the Company expects to receive consists of the sales price adjusted for any incentives if applicable. Sales of plastic flexible packaging materials are reported, net of value added taxes (“VAT”), sales returns, trade discounts. The standard terms and conditions under which the Group generally delivers allow a customer the right to return product for refund only if the product does not conform to product specifications; the non-conforming product is initially identified by customer, and the customer notifies the Group about the situation. After receiving the Group’s permission, the non-conforming product may be returned for replacement or refund. In applying judgment, the Company considered customer expectations of performance, materiality and the core principles of ASC Topic 606. The Company’s performance obligations are generally transferred to the customer at a point in time. The Company’s contracts with customers generally do not include any variable consideration. In the PRC, VAT of 13% on invoice amount is collected in respect of the sales of goods on behalf of tax authorities. The VAT collected is not revenue of the Group; instead, the amount is recorded as a liability on the consolidated balance sheet until such VAT is paid to the authorities. (l) Research and Development Costs Research and development expenditures are expensed as incurred. Research and development costs amounted to RMB9,449 (US$1,357), RMB14,553 and RMB9,464 for the year ended December 31, 2019, 2018 and 2017 and such costs were recorded in administrative expenses. (m) Income Taxes Income taxes are accounted for under the asset and liability method. Under guidance contained in FASB ASC 740‑10, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We follow the recognition and disclosure provisions under guidance contained in FASB ASC 740‑10‑25. Under this guidance, tax positions are evaluated for recognition using a more-likely-than-not threshold, and those tax positions requiring recognition are measured as the largest amount of tax benefit that is greater than fifty percent likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. We only recognized deferred tax assets for the loss 2018 after considering the possibility of realizing the benefits under the conservatism principle. (n) Earnings (loss) per Share Basic earnings (loss) per share is computed by dividing net earnings (loss) by the weighted average number of ordinary shares outstanding during the year. Diluted earnings (loss) per share is calculated by dividing net earnings (loss) by the weighted average number of ordinary and dilutive potential ordinary shares outstanding during the year. Diluted potential ordinary shares consist of shares issuable pursuant to stock option plan. On December 5, 2016, we held an extraordinary general meeting of shareholders pursuant to which a 1‑for‑4 reverse stock split of our authorized ordinary shares, accompanied by a corresponding decrease in our issued and outstanding ordinary shares and an increase of the par value of each ordinary share from $0.129752 to US$0.519008 (the “Reverse Stock Split”), was approved by our shareholders of record. All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the 1‑for‑4 reverse stock split. (o) Use of Estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management of the Group to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, management reviews its estimates and assumptions including those related to the recoverability of the carrying amount and the estimated useful lives of long-lived assets, valuation allowances for accounts receivable and realizable values for inventories. Changes in facts and circumstances may result in revised estimates. (p) Non-controlling interest Non-controlling interest represents the portion of equity that is not attributable to the Company. The net income (loss) attributable to noncontrolling interests are separately presented in the accompanying statements of income and other comprehensive income. Losses attributable to noncontrolling interests in a subsidiary may exceed the interest in the subsidiary’s equity. The related noncontrolling interest continues to be attributed its share of losses even if that attribution results in a deficit of the noncontrolling interest balance. (q) Segment Reporting The Group uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Group’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Group’s reportable segments. Management, including the chief operating decision maker, reviews operating results solely by monthly revenue of BOPET film (but not by sub-product type or geographic area) and operating results of Shandong Fuwei, the operating subsidiary in the PRC. As such, the Group has determined that the Group has a single operating segment. (r) Contingencies In the normal course of business, the Group is subject to contingencies, including legal proceedings and claims arising out of the business that relate to a wide range of matters, including among others, product liability. The Group recognizes a liability for such contingency if it determines it is probable that a loss has occurred and a reasonable estimate of the loss can be made. The Group may consider many factors in making these assessments including past history and the specifics of each matter. (s) Reclassification Certain reclassifications have been made to the fiscal year 2019 and 2018 consolidated financial statements to conform to the fiscal 2019 consolidated financial statement presentation. These reclassifications had no effect on net loss or cash flows as previously reported. (t) Going Concern Matters The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles which contemplate continuation of the company as a going concern. However, as of December 31, 2019, the Company had a working capital deficiency of RMB109,971 (US$15,796) and accumulated earnings of RMB11,363 (US$1,632) from net profit incurred during the year of 2019. Confronted with the fierce competition in the BOPET industry in China, the Company may still witness losses over the next twelve months. The ability of the Company to operate as a going concern depends upon its ability to obtain outside sources of working capital and/or generate positive cash flow from operations. The Company may not have sufficient working capital to meet its planned operating activities over the next twelve months. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans regarding these matters are described as per follows: The Company accordingly has developed an outside financing plan to meet the need of working capital for our operation or debts. At the same time, the Company will continue implementing cost reductions on both manufacturing costs and operating expenses to improve profit margins. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should the Company be unable to continue as a going concern. (u) Recently Issued Accounting Standards Disclosure Framework In August 2018, the FASB issued ASU No. 2018-13, "Disclosure Framework- Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13"), which removes, modifies, and adds certain disclosure requirements in ASC 820. ASU 2018-13 is effective for fiscal years and interim periods beginning after December 15, 2019; early adoption is permitted. We are in the process of evaluating the impact of this standard on our disclosures but do not currently believe that it will have a material impact. Leases In February 2016, the FASB issued ASU 2016‑02,"Leases" to provide a new comprehensive model for lease accounting. Under this guidance, lessees and lessors should apply a "right-of-use" model in accounting for all leases (including subleases) and eliminate the concept of operating leases and off-balance sheet leases. This guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2018. Early adoption is permitted. We adopted the provision of ASU 2016-02 .The adoption of ASU 2016-02 did not have a material impact on our consolidated financial statements. Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016‑13, Financial Instruments - Credit Losses (Topic 326): The amendments in this Update require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate of expected credit loss, which will be more decision useful to users of the financial statements. ASU 2016‑13 is effective for the Company for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is allowed as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are still evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures. Other pronouncements issued by the FASB or other authoritative accounting standards group with future effective dates are either not applicable or not significant to the consolidated financial statements of the Company. |
Accounts and Bills Receivable,
Accounts and Bills Receivable, net | 12 Months Ended |
Dec. 31, 2019 | |
Accounts and Bills Receivable, net | |
Accounts and Bills Receivable, net | (4) Accounts and Bills Receivable, net Accounts receivable consisted of the following: December 31, 2019 December 31, 2018 RMB US$ RMB Accounts receivable 13,990 2,010 17,367 Less: Allowance for doubtful accounts (833) (120) (1,847) 13,157 1,890 15,520 Bills receivable 13,803 1,983 7,107 26,960 3,873 22,627 An analysis of the allowance for doubtful accounts for 2019, 2018 and 2017 is as follows: December 31, 2019 December 31, 2018 December 31, 2017 RMB US$ RMB RMB Balance at beginning of year 1,847 265 2,467 3,213 Bad debt (recovery) expense (1,014) (145) (620) (746) Write-offs — — — — Balance at end of year 833 120 1,847 2,467 The Group has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain amount. These receivables are due within 7 to 90 days from the date of billing. Normally, the Group does not obtain collateral from customers. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventories | |
Inventories | (5) Inventories Inventories consisted of the following: December 31, 2019 December 31, 2018 RMB US$ RMB Raw materials 19,108 2,746 14,154 Work-in-progress 1,152 165 1,473 Finished goods 10,041 1,442 14,558 Consumables and spare parts 892 128 610 Allowance for obsolescence (7,609) (1,093) (6,120) 23,584 3,388 24,675 |
Prepayments and Other Receivabl
Prepayments and Other Receivables | 12 Months Ended |
Dec. 31, 2019 | |
Prepayments and Other Receivables | |
Prepayments and Other Receivables | (6) Prepayments and Other Receivables Prepayments and other receivables consisted of the following: December 31, 2019 December 31, 2018 RMB US$ RMB Lease prepayments, current portion 524 75 524 Other receivables 534 77 544 1,058 152 1,068 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | (7) Property, Plant and Equipment Property, plant and equipment consisted of the following: December 31, 2019 December 31, 2018 RMB US$ RMB Buildings 68,319 9,813 68,319 Plant and equipment 817,715 117,458 808,717 Computer equipment 3,163 454 3,027 Furniture and fixtures 19,631 2,820 14,528 Motor vehicles 1,452 209 1,824 910,280 130,754 896,415 Less: accumulated depreciation (600,419) (86,245) (558,028) Impairment of plant and equipment (7,219) (1,037) (7,219) 302,642 43,472 331,168 All of the Group’s buildings are located in the PRC. As of December 31, 2019 and 2018, property, plant plus land use rights with carrying value totaling RMB49,495 (US$7,110) and RMB52,047 respectively were pledged to banks as collateral for credit limits and loans(see Note 11). As of December 31, 2019, the mortgaged floor area of facilities and land use right to the bank is 46,196 square meters and 74,251 square meters, respectively. |
Lease Prepayments
Lease Prepayments | 12 Months Ended |
Dec. 31, 2019 | |
Lease Prepayments | |
Lease Prepayments | (8) Lease Prepayments The balance represents the lease prepayments of land use rights of the Group as follows: December 31, 2019 December 31, 2018 RMB US$ RMB Non-current portion 15,762 2,264 16,296 Current portion - amount charged to expense within a year 524 75 524 16,286 2,339 16,820 As of December 31, 2019, part of prepaid land use rights were pledged to banks as collateral for credit limit in bank (see Note 11). Land use rights amortization for the year ended December 31, 2019, 2018 and 2017 were RMB524 (US$75), RMB524 and RMB524, respectively. As of December 31, 2019, prepaid land use rights of the Group included certain parcels of land located in Weifang City, Shandong Province, the PRC, with a net book value of RMB14,696 or US$2,111. The land use rights for land with area of approximately 43,878 square meters, 30,373 square meters will expire in November 2050 and May 2053, respectively. |
Advance to suppliers
Advance to suppliers | 12 Months Ended |
Dec. 31, 2019 | |
Advance to suppliers | |
Advance to suppliers | (9) Advance to suppliers Historically, we have significant working capital commitments because suppliers of PET resin and additives -based raw materials require us to make prepayments in advance of shipment. Besides, we may make prepayments related to some equipment purchases based on arrangement of contract. Our prepayments to suppliers were recorded either as advances to suppliers, if they are expected to be utilized within 12 months as of balance sheet date, or as long-term prepayments, which was included in the line item “advance to suppliers –long term” in our consolidated balance sheet, if they represented the portion expected to be utilized after 12 months. As of December 31, 2019 and 2018, the current portion of advance to suppliers was RMB6,277 (US$902) and RMB5,694, respectively. The noncurrent portion of advance to suppliers was RMB1,542 (US$221) and RMB1,542, respectively. |
SHORT-TERM BORROWINGS AND LONG-
SHORT-TERM BORROWINGS AND LONG-TERM LOAN | 12 Months Ended |
Dec. 31, 2019 | |
SHORT-TERM BORROWINGS AND LONG-TERM LOAN [Abstract] | |
SHORT-TERM BORROWINGS AND LONG-TERM LOAN | (10) SHORT-TERM BORROWINGS AND LONG-TERM LOAN Short-term borrowings and long-term loan consisted of the following: Interest rate per September 30, 2019 December 31, 2018 Lender annum RMB US$ RMB BANK LOANS Bank of Weifang. - July 17, 2018 to July 15, 2019 6.5 % — — 20,000 - July 17, 2018 to July 17, 2019 6.5 % — — 29,950 - June 21, 2018 to June 19, 2019 6.5 % — — 15,000 - June 19, 2019 to June 18, 2020 6.5 % 15,000 2,155 — - July 15, 2019 to July 15, 2020 6.5 % 20,000 2,873 - July 18, 2019 to July 9, 2020 6.5 % 30,000 4,309 Notes: The principal amounts of the above loans are repayable at the end of the loan period. Bank loans outstanding, which are all denominated in Renminbi, are secured and guaranteed as follows: December 31, 2019 December 31, 2018 December 31, 2017 Secured by: RMB US$ RMB RMB Property plant and equipment, Land use right 65,000 9,337 64,950 50,000 Guarantee company — — — — 65,000 9,337 64,950 50,000 |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2019 | |
Notes Payable | |
Notes Payable | (11) Notes Payable The credit line amounting to RMB95,000 (US$13,817) granted by Bank of Weifang was secured by a pledge of plant and land use right. The credit line was used to purchase raw materials. The term of the credit line granted by Bank of Weifang is from July 2018 to July 2021. As of December 31, 2019, the amount of credit line granted by Bank of Weifang was all used. As of December 31, 2019, Shandong Fuwei had banker’s acceptances opened with a maturity from three to six months totaling RMB41,000 (US$5,889) for payment in connection with raw materials on a total deposits of RMB25,500 (US$3,663) at Bank of Weifang, respectively. Notes payable consisted of the following: December 31, 2019 December 31, 2018 Issuing bank RMB US$ RMB Bank of Weifang 41,000 5,889 48,000 41,000 5,889 48,000 |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Expenses and Other Payables | |
Accrued Expenses and Other Payables | (12) Accrued Expenses and Other Payables Accrued expenses and other payables consisted of the following: December 31, 2019 December 31, 2018 RMB US$ RMB Other payables 5,454 783 5,072 5,454 783 5,072 |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2019 | |
Revenues. | |
Revenues | (13) Revenues The Company’s revenue is primarily derived from the manufacture and sale of plastic flexible packaging materials. During the fiscal year ended December 31, 2019, net revenues were RMB335,620 (US$48,209), compared to RMB333,522 during the same period in 2018, representing an increase of RMB2,098 or 0.6%. For further analysis of the factors causing revenue increase, the decrease of average sales price caused a decrease of RMB817 and sales volume factor made an increase of RMB2,915. The following table shows the distribution of the Company’s revenue by the geographical location of customers, whereas all the Company’s assets are located in the PRC: December 31, 2019 December 31, 2018 December 31, 2017 RMB US$ RMB RMB Sales in China 288,066 41,378 288,128 235,143 Sales in other countries (principally Europe, Asia and North America) 47,554 6,831 45,394 55,563 335,620 48,209 333,522 290,706 Overseas sales were RMB47,554 (US$6,831) or 14.2% of total revenues, compared with RMB45,394 or 13.6% of total revenues in 2018. The increase of average sales price caused an increase of RMB553 and sales volume factor made an increase of RMB1,607. The Company’s revenue by significant types of films for 2019, 2018 and 2017 was as follows: December 31, 2019 December 31, 2018 December 31, 2017 RMB US$ % of Total RMB % of Total RMB % of Total Stamping and transfer film 116,681 16,760 34.8 % 129,548 % 116,396 40.0 % Printing film 33,877 4,866 10.1 % 30,686 % 24,779 % Metallized film 5,493 789 1.6 % 4,373 % 8,431 % Specialty film 162,432 23,332 48.4 % 148,801 % 108,089 % Base film for other applications 17,137 2,462 5.1 % 20,114 6.0 % 33,011 % 335,620 48,209 100.0 % 333,522 100.0 % 290,706 100.0 % In 2019, sales of specialty films were RMB162,432 (US$23,332) and 48.4% of our total revenues as compared to RMB148,801 and 44.6% in 2018, which was an increase of RMB13,631, or 9.2%, as compared to the same period in 2018. The decrease of average sales price caused a decrease of RMB678 and sales volume factor made an increase of RMB14,309. |
Depreciation and Amortization
Depreciation and Amortization | 12 Months Ended |
Dec. 31, 2019 | |
Depreciation and Amortization | |
Depreciation and Amortization | (14) Depreciation and Amortization Depreciation of property, plant and equipment and amortization of intangible asset is included in the following captions: December 31, 2019 December 31, 2018 December 31, 2017 RMB US$ RMB RMB Cost of goods sold 15,473 2,222 18,985 16,981 Selling expenses — — — 11 Administrative expenses 25,978 3,732 25,524 25,885 41,451 5,954 44,509 42,877 |
Freight Costs
Freight Costs | 12 Months Ended |
Dec. 31, 2019 | |
Freight Costs | |
Freight Costs | (15) Freight Costs The Group records freight costs related to the transporting of the raw materials to the Group’s warehouse in cost of raw materials and all other outbound freight costs in selling expenses. For the year ended December 31, 2019, 2018 and 2017, freight costs included in cost of goods sold were RMB3,380 (US$486), RMB1,729 and RMB4,495, respectively, and RMB8,705 (US$1,250), 8,441 and RMB8,527, respectively, were included in selling expenses. |
Interest Expense
Interest Expense | 12 Months Ended |
Dec. 31, 2019 | |
Interest Expense. | |
Interest Expense | (16) Interest Expense The Group capitalizes interest expense as a component of the cost of construction in progress. The following is a summary of interest cost incurred during the year ended December 31, 2019, 2018 and 2017: December 31, 2019 December 31, 2018 December 31, 2017 RMB US$ RMB RMB Interest cost capitalized — — — — Interest cost charged to expense 8,892 1,277 9,766 9,453 8,892 1,277 9,766 9,453 Interest expense in 2019 was lower than that in 2018, which was mainly due to decreased loans from related parties. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Income Taxes | (17) Income Taxes Cayman Islands Tax Under the current Cayman Island laws, the Company is not subject to tax on income or capital gain. In addition, upon payments of dividends by the Company to its shareholders, no Cayman Islands withholding tax is imposed. PRC Tax Shandong Fuwei, being a Hi-Tech Enterprise in the Weifang Hi-Tech Industrial Zone in Shandong, the PRC, has been granted preferential tax treatments by the Tax Bureau of the PRC. According to the PRC Income Tax Law and various approval documents issued by the Tax Bureau, Shandong Fuwei’s profit was taxed at a rate of 15%. In 2014, Fuwei Films failed to be designated as a Hi-Tech Enterprise and it became subject to a standard enterprise income tax at a rate of 25% in 2014 and 2015. In 2016, Shandong Fuwei was designated as a High-and-New Tech Enterprise and as a result, it is entitled to preferential tax treatment at an EIT rate of 15% for the years ended December 31, 2016, 2017 and 2018. In 2019, Shandong Fuwei was designated as a High-and-New Tech Enterprise and as a result, it is entitled to preferential tax treatment at an EIT rate of 15% for the years ended December 31, 2019, 2020 and 2021. The Group had minimal operations in jurisdictions other than the PRC. Net (loss) income before income taxes consists of: 2019 2018 2017 RMB US$ RMB RMB Cayman Islands (3) — (949) (2,406) British Virgin Islands (3) (1) (7) (5) PRC 13,694 1,967 (17,598) (42,784) 13,688 1,966 (18,554) (45,195) The Company has no material unrecognized tax benefit which would favorably affect the income taxes in future periods and does not believe there will be any significant increases or decreases within the next twelve months. No interest or penalties have been accrued at the date of adoption. As of December 31, 2019, we do not have any accrued liability for uncertain tax positions. Shandong Fuwei was designated as a High-and-New Tech Enterprise in December 2008 and retained its status as a high-tech enterprise for three years commencing from 2011 enjoying a favorable corporate tax rate during the term from January 1, 2011 to December 31, 2013 pursuant to the Enterprise Income Tax Law. In 2014, Fuwei Films failed to be designated as High-and-New Tech Enterprise. In 2016 and 2019, Shandong Fuwei was designated as High-and-new Tech Enterprise. Accordingly, the deferred taxes as of December 31, 2019 have been calculated employing the statutory rate of Shandong Fuwei of 15%. Income tax benefit (expense) consists of: Current Deferred Total PRC Income tax RMB RMB RMB Year ended December 31, 2017 — (808) (808) Year ended December 31, 2018 (2) (3,616) (3,618) Year ended December 31, 2019 — (2,325) (2,325) Year ended December 31, 2019 (US$) — (334) (334) Income tax expenses reported in the consolidated statements of income differs from the income tax expense amount computed by applying the PRC income tax rate of 25%, 15% (the statutory tax rate of the Company’s principal subsidiary) for the year ended December 31, 2019, 2018 and 2017 for the following reasons: 2019 2018 2017 RMB US$ RMB RMB Income (loss) before income taxes 13,688 1,966 (18,554) (45,195) Computed “expected” tax expense (3,424) (492) (218) (218) Non-taxable income 2,055 295 131 131 Tax holiday 1,369 197 87 87 Tax effect of deferred tax and tax rates differential (2,325) (334) (3,618) (808) Actual income tax benefit (expense) (2,325) (334) (3,618) (808) Tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) as of December 31, 2019 and 2018 are presented below. December 31, 2019 December 31, 2018 Current RMB US$ RMB Accounts receivable 125 18 277 Other receivables — — — Inventory impairment 1,141 164 918 Estimated Loss due to Product Warranty — — — 1,266 182 1,195 Non-current Property, plant and equipment, principally due to differences in depreciation 493 71 634 Construction in progress, principally due to capitalized interest (1,980) (284) (2,208) Lease prepayments, principally due to differences in charges (310) (45) (320) Allowance for advanced to supplier-long term 16 2 16 Net loss carryforward — — 2,493 (1,781) (256) 615 Net deferred income tax assets (515) (74) 1,810 In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Considering the level of historical performance of Shandong Fuwei, we did not recognize deferred tax assets for the loss of previous years after considering the possibility of realizing the benefits under the conservatism principle. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions | |
Related Party Transactions | (18) Related Party Transactions Name of party Relationship Hongkong Ruishang International Trade Co., Ltd. (the “Hongkong Ruishang”) Shareholder of the Company(52.9%) Shandong Fuhua Investment Company Limited. (“Shandong Fuhua”) Shareholder of the Company(12.54%) Hongkong Ruishang International Trade Co., Ltd. (the “Hongkong Ruishang”) Subsidiary of Shandong SNTON Group Co., Ltd.(“SNTON Group”) Shandong SNTON Optical Materials Technology Co., Ltd.( “Shandong SNTON”) Subsidiary of Shandong SNTON Group Co., Ltd.(“SNTON Group”) Due to related parties In April 2014, we obtained a loan for a total amount of RMB105,000 from Shandong SNTON Optical Materials Technology Co., Ltd. (the “Shandong SNTON”) to pay off certain short-term loans due to Bank of Communications Co., Ltd. The interest shall be calculated at the benchmark rate, plus an additional 20% of the said benchmark rate, for the loan of the same term announced by the People’s Bank of China. The interest must be paid quarterly and settled in full at the end of the year. As of December 31, 2014, the principal of this loan and the interest have not been paid. In March 2015, we entered into a supplemental agreement with Shandong SNTON pursuant to which the parties agreed that we will pay off the principal of this loan plus interest upon availability of new loans from banks or other financial institutions. As of December 31, 2019, the principal of this loan from Shandong SNTON was RMB86,796. As of December 31, 2019, 2018 and 2017, the interest was RMB32,501, RMB27,896, and RMB22,930 respectively. |
Pension Plan
Pension Plan | 12 Months Ended |
Dec. 31, 2019 | |
Pension Plan | |
Pension Plan | (19) Pension Plan Pursuant to the relevant PRC regulations, the Group is required to make contributions at a rate of 20% of employees’ salaries and wages to a defined contribution retirement scheme organized by the local Social Bureau in respect of the retirement benefits for the Group’s employees in the PRC. The total amount of contributions of RMB1,474 (US$212), RMB1,592 and RMB1,498 for the year ended December 31, 2019, 2018 and 2017 respectively, was charged to administrative expenses in the accompanying consolidated statements of income. The Group has no other obligation to make payments in respect of retirement benefits of the employees. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value of Financial Instruments | |
Fair Value of Financial Instruments | (20) Fair Value of Financial Instruments Our accounting for Fair Value Measurement and Disclosures, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This topic also establishes a fair value hierarchy which requires classification based on observable and unobservable inputs when measuring fair value. The fair value hierarchy distinguishes between assumptions based on market data (observable inputs) and an entity’s own assumptions (unobservable inputs). The hierarchy consists of three levels: Level one — Quoted market prices in active markets for identical assets or liabilities; Level two — Inputs other than level one inputs that are either directly or indirectly observable; and Level three — Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter. The measurement basis used in the preparation of the consolidated financial statements is the historical cost basis except that the following assets and liabilities are stated at their fair value, such as derivative financial instruments and available-for-sale equity securities. The Company had no assets and liabilities measured at fair value on December 31, 2019. The carrying amount of cash and cash equivalents, trade accounts receivable, prepayments and other receivables, amounts due from related parties, amounts due to related parties, and accrued liabilities and other payables, approximate their fair values because of the short maturity of these instruments. The carrying amount of bank loans approximate the fair value based on the borrowing rates currently available for bank loans with similar terms and maturity. |
Business and Credit Concentrati
Business and Credit Concentrations | 12 Months Ended |
Dec. 31, 2019 | |
Business and Credit Concentrations | |
Business and Credit Concentrations | (21) Business and Credit Concentrations (a) Almost all of the Group’s customers are located in the PRC. There is no individual customer with gross revenue more than 10% of total gross revenue during the year ended December 31, 2019, 2018 and 2017. Each amount due from the following customers represented more than 10% of the outstanding accounts receivable on December 31, 2019 and 2018. Percentage of accounts receivable outstanding ()% December 31, 2019 Hunan Hori New Materials Co., Ltd. 19.3 % Eternal Electronic (Suzhou) Co., Ltd. 15.1 % Percentage of accounts receivable outstanding ()% December 31, 2018 Hunan Hori New Materials Co., Ltd. 17.7 % Eternal Electronic Material (Guangzhou) Co., Ltd. 12.4 % Eternal Electronic (Suzhou) Co., Ltd. 10.8 % Yunnan Dexin Zhiye Co., Ltd. 10.0 % (b) The Group purchased a significant portion of PET resin required for the production of BOPET film from Sinopec Yizheng Chemical Fibre Company Limited (“Sinopec Yizheng”), Hefei Lucky Technology Industry Co., LTD. Jiangyin Branch (“Lucky Jiangyin”) and PetroChina North China Sales Company (“PetroChina”) during the year ended December 31, 2019, 2018 and 2017. The Group believes that there are a limited number of suppliers in the PRC with the ability to consistently supply PET resin that meets the Group’s quality standards and requirements. Currently, the Group has an annual supply agreement with Sinopec Yizheng pursuant to which Sinopec Yizheng has agreed to supply fixed quantities of PET resin to the Group on a monthly basis at the prevailing market prices. The terms of such supply agreement are reviewed annually. Although the Group believes that it maintains a good relationship with its major suppliers, there can be no assurance that Sinopec Yizheng will continue to sell to the Group under normal commercial terms as and when needed. The following are the vendors that supplied 10% or more of our raw materials for each of the year ended December 31, 2019, 2018 and 2017: Percentage of total purchases ()% Supplier Item 2019 2018 2017 Sinopec Yizheng Chemical Fibre Company Limited PET resin and Additives 58.3 % 43.3 % 40.5 % Hefei Lucky Technology Industry Co., LTD. Jiangyin Branch PET resin and Additives PET resin and Additives 10.3 % 0.1 % — PetroChina Co Ltd North China chemical sales branch PET resin and Additives — 30.3 % — PetroChina Co Ltd East China chemical sales branch PET resin and Additives PET resin and Additives — — 28.6 % Weifang Power Supply Company. Electric power 8.3 % 8.4 % 10.3 % The balance of advance to supplier to Sinopec Yizheng was RMB3,643 (US$523) as of December 31, 2019. The balance of advance to supplier to Sinopec Yizheng was RMB3,763 (US$547) as of December 31, 2018. (c) Financial instruments that potentially subject the Company to concentrations of credit risk are cash and cash equivalents, accounts receivable and other receivables arising from its normal business activities. The Company places its cash and cash equivalents in what it believes to be credit-worthy financial institutions. The Company maintains large sums of cash in two major banks in China. The aggregate balance in such accounts as of December 31, 2019 was RMB59,681 (US $8,573). There is no insurance securing these deposits in China. The Company has a diversified customer base, most of which are in China. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | (22) Commitments and Contingencies (a) Operating lease commitments Future minimum lease payments under non-cancelable operating leases as of December 31, 2019 are as follows: December 31, 2019 RMB US$ Operating lease commitments 26 4 The Company leases warehouses, staff quarters and offices under operating leases. The leases duration is typically for one to three years, with an option to renew. None of the leases includes contingent rentals. For the year ended December 31, 2019, 2018 and 2017, total rental expenses for non-cancelable operating leases were RMB26 (US$4), RMB114 and RMB160 , respectively. (b) Outstanding bills receivable discounted As of December 31, 2019, the Company had not retained any recourse obligation in respect of bills receivable discounted with and sold to banks. (c) Legal Proceedings From time to time, we may be subject to legal actions and other claims arising in the ordinary course of business. Shandong Fuwei is currently a party to one legal proceeding in China. On July 9, 2012, a client filed a lawsuit in Beijing Daxing District People’s Court against Shandong Fuwei claiming RMB953 plus interest over disputes arising from a Procurement Contract between the parties. Shandong Fuwei raised a jurisdictional objection upon filing its plea, and Beijing Daxing District People’s Court overruled the objection. Shandong Fuwei filed an appeal against the judgment in the First Intermediate People’s Court of Beijing. The appeal was dismissed on January 23, 2013. On May 15, 2013, Beijing Daxing District People’s Court heard the case and adjourned the hearing due to the fact that plaintiff failed to provide sufficient evidence. On June 25, 2013, the case was heard in Beijing Daxing District People’s Court again and it was further adjourned due to plaintiff’s failure to provide sufficient evidence. The case was then scheduled to be heard on August 7, 2013. However, on the day prior to re-scheduled hearing, Shandong Fuwei was informed by Beijing Daxing District People’s Court that the hearing was adjourned further for the same reason that plaintiff failed to provide sufficient evidence. On April 21, 2014, the case was heard, and the plaintiff failed to provide sufficient evidence and the hearing was further adjourned. On May 28, 2014, the case was heard and the plaintiff provided some evidence. On August 25, 2014, the case was heard again. On November 5, 2014, the court accepted the withdrawal application from the plaintiff. On November 26, 2014, the plaintiff filed a second lawsuit in Beijing Daxing District People’s Court against Shandong Fuwei over disputes arising from the Procurement Contract between the parties claiming RMB618 plus interest as a result of non- payment. The case was heard on January 26, 2015, where the two parties testified over the relevant evidence. The case was heard on March 3, 2015, October 26, 2015 and May 11, 2016. To date, the case has not been decided. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings (Loss) Per Share | |
Earnings (Loss) Per Share | (23) Earnings (Loss) Per Share Basic and diluted earnings per share for the period/year ended December 31, 2019, 2018 and 2017 have been calculated as follows: 2019 2018 2017 RMB US$ RMB RMB Net (loss) income available to ordinary shareholders 11,363 1,632 (22,172) (46,003) Weighted average number of ordinary shares outstanding 3,265,837 3,265,837 3,265,837 3,265,837 Dilutive effect of share options — — — — Diluted weighted average number of ordinary shares outstanding 3,265,837 3,265,837 3,265,837 3,265,837 Basic and diluted earnings (loss) per share 3.48 0.50 (6.79) (14.09) |
Fuwei Films (Holdings) Co., Ltd
Fuwei Films (Holdings) Co., Ltd (Parent Company) | 12 Months Ended |
Dec. 31, 2019 | |
Fuwei Films (Holdings) Co., Ltd (Parent Company) | |
Fuwei Films (Holdings) Co., Ltd (Parent Company) | (24) Fuwei Films (Holdings) Co., Ltd (Parent Company) Under PRC regulations, the Company’s operating subsidiary, Shandong Fuwei may pay dividends only out of its accumulated profits, if any, determined in accordance with the accounting standards and regulations prevailing in the PRC (“PRC GAAP”). In addition, Shandong Fuwei is required to set aside at least 10% of its accumulated profits each year, if any, to fund the statutory general reserve until the balance of the reserve reaches 50% of its registered capital. The statutory general reserve is not distributable in the form of cash dividends to the Company and can be used to make up cumulative prior year losses, if any, and may be converted into share capital by the issue of new shares to shareholders in proportion to their existing shareholdings, or by increasing the par value of the shares currently held by them, provided that the reserve balance after such issue is not less than 25% of the registered capital. Further, Shandong Fuwei is also required to allocate 5% of the profit after tax, determined in accordance with PRC GAAP, to the statutory public welfare fund which is restricted to be used for capital expenditures for staff welfare facilities owned by the Company. The statutory public welfare fund is not available for distribution to equity owners (except in liquidation) and may not be transferred in the form of loans, advances, or cash dividends. As of December 31, 2019, an aggregate amount of RMB37,441 (US$5,378) has been appropriated from retained earnings and set aside for statutory general reserve and public welfare fund, by Shandong Fuwei. As of December 31, 2019, the amount of restricted assets of Shandong Fuwei, which may not be transferred to the Company in the form of loans, advances or cash dividends by the subsidiaries without the consent of a third party, was approximately 75.0% of the Company’s consolidated total assets as discussed above. In addition, the current foreign exchange control policies applicable in the PRC also restrict the transfer of assets or dividends outside the PRC. The following presents condensed unaudited unconsolidated financial information of the Parent Company only. Condensed unaudited Balance Sheet as of December 31, 2019 and 2018 2019 2018 RMB US$ RMB Cash and cash equivalents 3 1 18 Other current assets 298,309 42,849 292,444 Investments in subsidiaries — — — Total assets 298,312 42,850 292,462 Current liabilities 70,943 10,190 69,560 Total shareholders’ equity 227,369 32,660 222,902 Total liabilities and shareholders’ equity 298,312 42,850 292,462 Condensed unaudited Statements of Operations (For the years ended December 31, 2019, 2018 and 2017) 2019 2018 2017 RMB US$ RMB RMB Interest income (expenses) (3) (1) (3) (7) General and administrative expenses — — (1,661) (2,399) Other income — — 715 — Loss before equity in undistributed earnings of subsidiaries (3) (1) (949) (2,406) Equity in earnings of subsidiaries 11,366 1,633 (21,223) (43,597) Net income 11,363 1,632 (22,172) (46,003) Condensed unaudited Statement of Cash Flows (For the year ended December 31, 2019, 2018 and 2017) 2019 2018 2017 RMB US$ RMB RMB Cash flow from operating activities Net income 11,363 1,632 (22,172) (46,003) Adjustment to reconcile net income (loss) to net cash from operating activities: - Equity in earnings of subsidiaries (11,366) (1,633) 21,223 43,597 - Foreign exchange gain — — — — Changes in operating assets and liabilities: - Other current assets — — — — - Other current liabilities (12) (1) (814) (66) Net cash provided by operating activities (15) (2) (1,763) (2,472) Cash flow from financing activities Payments to related parties — — (639) 4,762 Proceeds from related parties — — 2,294 (2,379) Effect of exchange — — 1 (12) Net cash provided by (used in) financing activities — — 1,656 2,371 Net increase (decrease) in cash (15) (2) (107) (101) Cash: At beginning of year 18 3 125 226 At end of year 3 1 18 125 |
Unaudited Quarterly Data
Unaudited Quarterly Data | 12 Months Ended |
Dec. 31, 2019 | |
Unaudited Quarterly Data | |
Unaudited Quarterly Data | (25) Unaudited Quarterly Data Quarter Ended March 31, June 30, September 30, December 31, Total Fiscal year 2019 RMB US$ RMB US$ RMB US$ RMB US$ RMB US$ Revenue 81,074 12,080 88,117 12,836 79,586 11,593 86,843 12,474 335,620 48,209 Gross profit 12,404 1,848 18,629 2,714 21,590 3,145 30,987 4,451 83,610 12,010 Net income (loss) (3,374) (503) 951 139 3,443 502 10,343 1,487 11,363 1,632 Basic and diluted earnings (loss) per share (1.03) (0.15) 0.29 0.04 1.05 0.15 3.17 0.46 3.48 0.50 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Practices (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies and Practices | |
Principles of Consolidation | (a) Principles of Consolidation The consolidated financial statements include the financial statements of the Company and its two subsidiaries, including, Fuwei Films (BVI) Co., Ltd., and Fuwei Films (Shandong) Co., Ltd.. All significant intercompany balances and transactions have been eliminated in consolidation. |
Foreign Currency Transactions | (b) Foreign Currency Transactions The Group’s reporting currency is the Chinese Yuan (“Renminbi” or “RMB”). The Company and Fuwei (BVI) operate in Hong Kong as investment holding companies and their financial records are maintained in Hong Kong dollars, being the functional currency of these two entities. Assets and liabilities are translated into RMB at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and income, expenses, and cash flow items are translated using the average rate for the period. The translation adjustments are recorded in accumulated other comprehensive income in the statements of equity. Transactions denominated in currencies other than RMB are translated into RMB at the exchange rates quoted by the People’s Bank of China (the “PBOC”) prevailing at the dates of transactions. Monetary assets and liabilities denominated in foreign currencies are translated into RMB using the applicable exchange rates quoted by the PBOC at the balance sheet dates. The resulting exchange differences are recorded in the statements of operations. Commencing from July 21, 2005, the PRC government moved the RMB into a managed floating exchange rate regime based on market supply and demand with reference to a basket of currencies. For the convenience of the readers, the RMB amounts for the year of 2019 included in the accompanying consolidated financial statements in our annual report has been translated into U.S. dollars at the rate of US$1.00 = RMB 6.9618, being the noon buy rate for U.S. dollars in effect on December 31, 2019 in the City of New York for cable transfer in RMB per U.S. dollar as certified for custom purposes by the Federal Reserve Bank. No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollar at that rate or at any other certain rate on December 31, 2019, or at any other date. RMB is not fully convertible into foreign currencies. All foreign exchange transactions involving RMB must take place either through the PBOC or other institutions authorized to buy and sell foreign currency. The exchange rate adopted for the foreign exchange transactions are the rates of exchange quoted by the PBOC which are determined largely by supply and demand. |
Cash and Cash Equivalents and Restricted Cash | (c) Cash and Cash Equivalents and Restricted Cash For statements of cash flow purposes, the Company considers all cash on hand and in banks, including certificates of deposit and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents. As of December 31, 2019 and 2018, there were cash and cash equivalents of RMB60,871 (US$8,744) and RMB8,908, respectively. As of December 31, 2019 and 2018, there were restricted cash of RMB25,500 (US$3,663) and RMB38,000, respectively, as deposit in bank for banker’s acceptance bill. |
Trade Accounts Receivable | (d) Trade Accounts Receivable Trade accounts receivable are recorded at the invoiced amount after deduction of trade discounts, value added taxes and allowances, if any, and do not bear interest. The allowance for doubtful accounts is the Group’s best estimate of the amount of probable credit losses in the Group’s existing accounts receivable. The Group determines the allowance based on historical write-off experience, customer specific facts and economic conditions. The Group reviews its allowance for doubtful accounts monthly. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. All other balances are reviewed on a pooled basis by aging of such balances. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The allowance for doubtful accounts as of December 31, 2019 and 2018 was RMB833 (US120) and RMB1,847, respectively. |
Inventories | (e) Inventories Inventories are stated at the lower of cost or market value as of balance sheet date. Inventory valuation and cost-flow is determined using Moving Weighted Average Method basis. The Group estimates excess and slow moving inventory based upon assumptions of future demands and market conditions. If actual market conditions are less favorable than projected by management, additional inventory write-downs may be required. Cost of work in progress and finished goods comprises direct material, direct production cost and an allocated portion of production overheads based on normal operating capacity. |
Property, Plant and Equipment | (f) Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation and allowance for fixed assets impairment. Depreciation on property, plant and equipment is calculated on the straight-line method (after taking into account their respective estimated residual values) over the estimated useful lives of the assets as follows: Years Buildings and improvements 25 – 30 Plant and equipment 10 – 15 Computer equipment 5 Furniture and fixtures 5 Motor vehicles 5 Depreciation related to abnormal amounts from idle capacity is charged to administrative expenses for the period incurred. Total depreciations for the years ended December 31, 2019, 2018 and 2017 were RMB41,451 (US$5,954), RMB44,509 and RMB42,877 respectively, of which 37.3%, 42.7% and 39.6% was recorded in cost of goods sold and 62.7%, 57.3% and 60.4% was recorded in administrative and selling expenses, respectively. Construction in progress represented capital expenditure in respect of the BOPET productions line. No depreciation is provided in respect of construction in progress. |
Leased Assets | (g) Leased Assets An arrangement, comprising a transaction or a series of transactions, is or contains a lease if the Group determines that the arrangement conveys a right to use a specific asset or assets for an agreed period of time in return for a payment or a series of payments. Such a determination is made based on an evaluation of the substance of the arrangement and is regardless of whether the arrangement takes the legal form of a lease. Classification of assets leased to the Group. Assets that are held by the Group under leases which transfer to the Group substantially all the risks and rewards of ownership are classified as being held under capital leases. Leases which do not transfer substantially all the risks and rewards of ownership to the Group are classified as operating leases. Assets acquired under capital leases. Where the Group acquires the use of assets under capital leases, the amounts representing the fair value of the leased asset, or, if lower, the present value of the minimum lease payments, of such assets are included in property, plant and equipment and the corresponding liabilities, net of finance charges, are recorded as obligations under capital leases. Depreciation is provided at rates which write off the cost or valuation of the assets over the term of the relevant lease or, where it is likely the Group will obtain ownership of the asset, the life of the asset. Finance charges implicit in the lease payments are charged to the consolidated income statement over the period of the leases so as to produce an approximately constant periodic rate of charge on the remaining balance of the obligations for each accounting period. Contingent rentals are charged to the consolidated income statement in the accounting period in which they are incurred. Operating lease charges. Where the Group has the use of assets held under operating leases, payments made under the leases are charged to the consolidated income statement in equal installments over the accounting periods covered by the lease term, except where an alternative basis is more representative of the pattern of benefits to be derived from the leased asset. Lease incentives received are recognized in the consolidated income statement as an integral part of the aggregate net lease payments made. Contingent rentals are charged to the consolidated income statement in the accounting period in which they are incurred. Sale and leaseback transactions. Gains or losses on equipment sale and leaseback transactions which result in capital leases are deferred and amortized over the terms of the related leases. Gains or losses on equipment sale and leaseback transactions which result in operating leases are recognized immediately if the transactions are established at fair value. Any loss on the sale perceived to be a real economic loss is recognized immediately. However, if a loss is compensated for by future rentals at a below-market price, then the artificial loss is deferred and amortized over the period that the equipment is expected to be used. If the sale price is above fair value, then any gain is deferred and amortized over the useful life of the assets. |
Lease Prepayments | (h) Lease Prepayments Lease prepayments represent the costs of land use rights in the PRC. Land use rights are carried at cost and charged to expense on a straight-line basis over the respective periods of rights of 30 years. The current portion of lease prepayments has been included in prepayments and other receivables in the balance sheet. |
Goodwill | (i) Goodwill Goodwill represents the excess of purchase price and related costs over the value assigned to the net tangible and identifiable intangible assets of businesses acquired. Goodwill is not amortized but is tested for impairment annually, or when circumstances indicate a possible impairment may exist. Impairment testing is performed at a reporting unit level. An impairment loss generally would be recognized when the carrying amount of the reporting unit exceeds the fair value of the reporting unit, with the fair value of the reporting unit determined using a discounted cash flow (DCF) analysis. A number of significant assumptions and estimates are involved in the application of the DCF analysis to forecast operating cash flows, including the discount rate, the internal rate of return, and projections of realizations and costs to produce. Management considers historical experience and all available information at the time the fair values of its reporting units are estimated. Goodwill was determined to be fully impaired during the year ended December 31, 2012. |
Impairment of Long-lived Assets | (j) Impairment of Long-lived Assets The Company recognizes an impairment loss when circumstances indicate that the carrying value of long-lived assets with finite lives may not be recoverable. Management’s policy in determining whether an impairment indicator exists, a triggering event, comprises measurable operating performance criteria at an asset group level as well as qualitative measures. If an analysis is necessitated by the occurrence of a triggering event, the Company uses assumptions, which are predominately identified from the Company’s strategic long-range plans, in determining the impairment amount. In the calculation of the fair value of long-lived assets, the Company compares the carrying amount of the asset group with the estimated future cash flows expected to result from the use of the assets. If the carrying amount of the asset group exceeds the estimated expected undiscounted future cash flows, the Company measures the amount of the impairment by comparing the carrying amount of the asset group with their estimated fair value. We estimate the fair value of assets based on market prices (i.e., the amount for which the asset could be bought by or sold to a third party), when available. When market prices are not available, we estimate the fair value of the asset group using discounted expected future cash flows at the Company’s weighted-average cost of capital. Management believes its policy is reasonable and is consistently applied. Future expected cash flows are based upon estimates that, if not achieved, may result in significantly different results. Considering the indivisibility of land and plant and the commonality of equipment, staff and technology, we take fixed assets and intangible assests as the group of assets. The accumulated loss on impairment of assets as of December 31,2019 was RMB7,219 (US$1,037), respectively. |
Revenue Recognition | (k) Revenue Recognition Revenue is recognized when obligations under the terms of a contract with the Company’s customers are satisfied. Satisfaction of contract terms occur when products are delivered, and the customer takes ownership and assumes risk of loss. The amount of consideration the Company expects to receive consists of the sales price adjusted for any incentives if applicable. Sales of plastic flexible packaging materials are reported, net of value added taxes (“VAT”), sales returns, trade discounts. The standard terms and conditions under which the Group generally delivers allow a customer the right to return product for refund only if the product does not conform to product specifications; the non-conforming product is initially identified by customer, and the customer notifies the Group about the situation. After receiving the Group’s permission, the non-conforming product may be returned for replacement or refund. In applying judgment, the Company considered customer expectations of performance, materiality and the core principles of ASC Topic 606. The Company’s performance obligations are generally transferred to the customer at a point in time. The Company’s contracts with customers generally do not include any variable consideration. In the PRC, VAT of 13% on invoice amount is collected in respect of the sales of goods on behalf of tax authorities. The VAT collected is not revenue of the Group; instead, the amount is recorded as a liability on the consolidated balance sheet until such VAT is paid to the authorities. |
Research and Development Costs | (l) Research and Development Costs Research and development expenditures are expensed as incurred. Research and development costs amounted to RMB9,449 (US$1,357), RMB14,553 and RMB9,464 for the year ended December 31, 2019, 2018 and 2017 and such costs were recorded in administrative expenses. |
Income Taxes | (m) Income Taxes Income taxes are accounted for under the asset and liability method. Under guidance contained in FASB ASC 740‑10, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We follow the recognition and disclosure provisions under guidance contained in FASB ASC 740‑10‑25. Under this guidance, tax positions are evaluated for recognition using a more-likely-than-not threshold, and those tax positions requiring recognition are measured as the largest amount of tax benefit that is greater than fifty percent likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. We only recognized deferred tax assets for the loss 2018 after considering the possibility of realizing the benefits under the conservatism principle. |
Earnings (loss) per Share | (n) Earnings (loss) per Share Basic earnings (loss) per share is computed by dividing net earnings (loss) by the weighted average number of ordinary shares outstanding during the year. Diluted earnings (loss) per share is calculated by dividing net earnings (loss) by the weighted average number of ordinary and dilutive potential ordinary shares outstanding during the year. Diluted potential ordinary shares consist of shares issuable pursuant to stock option plan. On December 5, 2016, we held an extraordinary general meeting of shareholders pursuant to which a 1‑for‑4 reverse stock split of our authorized ordinary shares, accompanied by a corresponding decrease in our issued and outstanding ordinary shares and an increase of the par value of each ordinary share from $0.129752 to US$0.519008 (the “Reverse Stock Split”), was approved by our shareholders of record. All references made to share or per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect the 1‑for‑4 reverse stock split. |
Use of Estimates | (o) Use of Estimates The preparation of the consolidated financial statements in accordance with U.S. GAAP requires management of the Group to make a number of estimates and assumptions relating to the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, management reviews its estimates and assumptions including those related to the recoverability of the carrying amount and the estimated useful lives of long-lived assets, valuation allowances for accounts receivable and realizable values for inventories. Changes in facts and circumstances may result in revised estimates. |
Noncontrolling interest | (p) Non-controlling interest Non-controlling interest represents the portion of equity that is not attributable to the Company. The net income (loss) attributable to noncontrolling interests are separately presented in the accompanying statements of income and other comprehensive income. Losses attributable to noncontrolling interests in a subsidiary may exceed the interest in the subsidiary’s equity. The related noncontrolling interest continues to be attributed its share of losses even if that attribution results in a deficit of the noncontrolling interest balance. |
Segment Reporting | (q) Segment Reporting The Group uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Group’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Group’s reportable segments. Management, including the chief operating decision maker, reviews operating results solely by monthly revenue of BOPET film (but not by sub-product type or geographic area) and operating results of Shandong Fuwei, the operating subsidiary in the PRC. As such, the Group has determined that the Group has a single operating segment. |
Contingencies | (r) Contingencies In the normal course of business, the Group is subject to contingencies, including legal proceedings and claims arising out of the business that relate to a wide range of matters, including among others, product liability. The Group recognizes a liability for such contingency if it determines it is probable that a loss has occurred and a reasonable estimate of the loss can be made. The Group may consider many factors in making these assessments including past history and the specifics of each matter. |
Reclassification | (s) Reclassification Certain reclassifications have been made to the fiscal year 2019 and 2018 consolidated financial statements to conform to the fiscal 2019 consolidated financial statement presentation. These reclassifications had no effect on net loss or cash flows as previously reported. |
Going Concern Matters | (t) Going Concern Matters The accompanying consolidated financial statements have been prepared in conformity with generally accepted accounting principles which contemplate continuation of the company as a going concern. However, as of December 31, 2019, the Company had a working capital deficiency of RMB109,971 (US$15,796) and accumulated earnings of RMB11,363 (US$1,632) from net profit incurred during the year of 2019. Confronted with the fierce competition in the BOPET industry in China, the Company may still witness losses over the next twelve months. The ability of the Company to operate as a going concern depends upon its ability to obtain outside sources of working capital and/or generate positive cash flow from operations. The Company may not have sufficient working capital to meet its planned operating activities over the next twelve months. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans regarding these matters are described as per follows: The Company accordingly has developed an outside financing plan to meet the need of working capital for our operation or debts. At the same time, the Company will continue implementing cost reductions on both manufacturing costs and operating expenses to improve profit margins. The accompanying consolidated financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should the Company be unable to continue as a going concern. |
Recently Issued Accounting Standards | (u) Recently Issued Accounting Standards Disclosure Framework In August 2018, the FASB issued ASU No. 2018-13, "Disclosure Framework- Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13"), which removes, modifies, and adds certain disclosure requirements in ASC 820. ASU 2018-13 is effective for fiscal years and interim periods beginning after December 15, 2019; early adoption is permitted. We are in the process of evaluating the impact of this standard on our disclosures but do not currently believe that it will have a material impact. Leases In February 2016, the FASB issued ASU 2016‑02,"Leases" to provide a new comprehensive model for lease accounting. Under this guidance, lessees and lessors should apply a "right-of-use" model in accounting for all leases (including subleases) and eliminate the concept of operating leases and off-balance sheet leases. This guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2018. Early adoption is permitted. We adopted the provision of ASU 2016-02 .The adoption of ASU 2016-02 did not have a material impact on our consolidated financial statements. Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016‑13, Financial Instruments - Credit Losses (Topic 326): The amendments in this Update require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The amendments broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The use of forecasted information incorporates more timely information in the estimate of expected credit loss, which will be more decision useful to users of the financial statements. ASU 2016‑13 is effective for the Company for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is allowed as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are still evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures. Other pronouncements issued by the FASB or other authoritative accounting standards group with future effective dates are either not applicable or not significant to the consolidated financial statements of the Company. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Practices (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies and Practices | |
Schedule of Depreciation on Property, Plant and Equipment | Depreciation on property, plant and equipment is calculated on the straight-line method (after taking into account their respective estimated residual values) over the estimated useful lives of the assets as follows: Years Buildings and improvements 25 – 30 Plant and equipment 10 – 15 Computer equipment 5 Furniture and fixtures 5 Motor vehicles 5 |
Accounts and Bills Receivable_2
Accounts and Bills Receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounts and Bills Receivable, net | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Accounts receivable consisted of the following: December 31, 2019 December 31, 2018 RMB US$ RMB Accounts receivable 13,990 2,010 17,367 Less: Allowance for doubtful accounts (833) (120) (1,847) 13,157 1,890 15,520 Bills receivable 13,803 1,983 7,107 26,960 3,873 22,627 |
Schedule of Allowance for Doubtful Accounts | An analysis of the allowance for doubtful accounts for 2019, 2018 and 2017 is as follows: December 31, 2019 December 31, 2018 December 31, 2017 RMB US$ RMB RMB Balance at beginning of year 1,847 265 2,467 3,213 Bad debt (recovery) expense (1,014) (145) (620) (746) Write-offs — — — — Balance at end of year 833 120 1,847 2,467 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventories | |
Schedule of Inventories | Inventories consisted of the following: December 31, 2019 December 31, 2018 RMB US$ RMB Raw materials 19,108 2,746 14,154 Work-in-progress 1,152 165 1,473 Finished goods 10,041 1,442 14,558 Consumables and spare parts 892 128 610 Allowance for obsolescence (7,609) (1,093) (6,120) 23,584 3,388 24,675 |
Prepayments and Other Receiva_2
Prepayments and Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Prepayments and Other Receivables | |
Schedule of Prepayments and Other Receivables | Prepayments and other receivables consisted of the following: December 31, 2019 December 31, 2018 RMB US$ RMB Lease prepayments, current portion 524 75 524 Other receivables 534 77 544 1,058 152 1,068 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consisted of the following: December 31, 2019 December 31, 2018 RMB US$ RMB Buildings 68,319 9,813 68,319 Plant and equipment 817,715 117,458 808,717 Computer equipment 3,163 454 3,027 Furniture and fixtures 19,631 2,820 14,528 Motor vehicles 1,452 209 1,824 910,280 130,754 896,415 Less: accumulated depreciation (600,419) (86,245) (558,028) Impairment of plant and equipment (7,219) (1,037) (7,219) 302,642 43,472 331,168 |
Lease Prepayments (Tables)
Lease Prepayments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Lease Prepayments | |
Schedule of Lease Prepayments | The balance represents the lease prepayments of land use rights of the Group as follows: December 31, 2019 December 31, 2018 RMB US$ RMB Non-current portion 15,762 2,264 16,296 Current portion - amount charged to expense within a year 524 75 524 16,286 2,339 16,820 |
SHORT-TERM BORROWINGS AND LON_2
SHORT-TERM BORROWINGS AND LONG-TERM LOAN (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | Short-term borrowings and long-term loan consisted of the following: Interest rate per September 30, 2019 December 31, 2018 Lender annum RMB US$ RMB BANK LOANS Bank of Weifang. - July 17, 2018 to July 15, 2019 6.5 % — — 20,000 - July 17, 2018 to July 17, 2019 6.5 % — — 29,950 - June 21, 2018 to June 19, 2019 6.5 % — — 15,000 - June 19, 2019 to June 18, 2020 6.5 % 15,000 2,155 — - July 15, 2019 to July 15, 2020 6.5 % 20,000 2,873 - July 18, 2019 to July 9, 2020 6.5 % 30,000 4,309 |
Schedule of Bank Loans Outstanding | December 31, 2019 December 31, 2018 December 31, 2017 Secured by: RMB US$ RMB RMB Property plant and equipment, Land use right 65,000 9,337 64,950 50,000 Guarantee company — — — — 65,000 9,337 64,950 50,000 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Notes Payable | |
Schedule of Notes Payable | Notes payable consisted of the following: December 31, 2019 December 31, 2018 Issuing bank RMB US$ RMB Bank of Weifang 41,000 5,889 48,000 41,000 5,889 48,000 |
Accrued Expenses and Other Pa_2
Accrued Expenses and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Expenses and Other Payables | |
Schedule of Accrued Expenses and Other Payables | Accrued expenses and other payables consisted of the following: December 31, 2019 December 31, 2018 RMB US$ RMB Other payables 5,454 783 5,072 5,454 783 5,072 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenues. | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following table shows the distribution of the Company’s revenue by the geographical location of customers, whereas all the Company’s assets are located in the PRC: December 31, 2019 December 31, 2018 December 31, 2017 RMB US$ RMB RMB Sales in China 288,066 41,378 288,128 235,143 Sales in other countries (principally Europe, Asia and North America) 47,554 6,831 45,394 55,563 335,620 48,209 333,522 290,706 |
Schedule of Revenue by Significant Types of Films | The Company’s revenue by significant types of films for 2019, 2018 and 2017 was as follows: December 31, 2019 December 31, 2018 December 31, 2017 RMB US$ % of Total RMB % of Total RMB % of Total Stamping and transfer film 116,681 16,760 34.8 % 129,548 % 116,396 40.0 % Printing film 33,877 4,866 10.1 % 30,686 % 24,779 % Metallized film 5,493 789 1.6 % 4,373 % 8,431 % Specialty film 162,432 23,332 48.4 % 148,801 % 108,089 % Base film for other applications 17,137 2,462 5.1 % 20,114 6.0 % 33,011 % 335,620 48,209 100.0 % 333,522 100.0 % 290,706 100.0 % |
Depreciation and Amortization (
Depreciation and Amortization (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Depreciation and Amortization | |
Schedule of Depreciation of Property, Plant and Equipment and Amortization of Intangible Asset | Depreciation of property, plant and equipment and amortization of intangible asset is included in the following captions: December 31, 2019 December 31, 2018 December 31, 2017 RMB US$ RMB RMB Cost of goods sold 15,473 2,222 18,985 16,981 Selling expenses — — — 11 Administrative expenses 25,978 3,732 25,524 25,885 41,451 5,954 44,509 42,877 |
Interest Expense (Tables)
Interest Expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Interest Expense. | |
Schedule of Interest Expense | The following is a summary of interest cost incurred during the year ended December 31, 2019, 2018 and 2017: December 31, 2019 December 31, 2018 December 31, 2017 RMB US$ RMB RMB Interest cost capitalized — — — — Interest cost charged to expense 8,892 1,277 9,766 9,453 8,892 1,277 9,766 9,453 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Schedule of Net Income (Loss) Before Income Taxes | The Group had minimal operations in jurisdictions other than the PRC. Net (loss) income before income taxes consists of: 2019 2018 2017 RMB US$ RMB RMB Cayman Islands (3) — (949) (2,406) British Virgin Islands (3) (1) (7) (5) PRC 13,694 1,967 (17,598) (42,784) 13,688 1,966 (18,554) (45,195) |
Schedule of Income Tax Benefit (Expense) | Income tax benefit (expense) consists of: Current Deferred Total PRC Income tax RMB RMB RMB Year ended December 31, 2017 — (808) (808) Year ended December 31, 2018 (2) (3,616) (3,618) Year ended December 31, 2019 — (2,325) (2,325) Year ended December 31, 2019 (US$) — (334) (334) |
Schedule of Reconciliation of Income Tax Benefit Rate | Income tax expenses reported in the consolidated statements of income differs from the income tax expense amount computed by applying the PRC income tax rate of 25%, 15% (the statutory tax rate of the Company’s principal subsidiary) for the year ended December 31, 2019, 2018 and 2017 for the following reasons: 2019 2018 2017 RMB US$ RMB RMB Income (loss) before income taxes 13,688 1,966 (18,554) (45,195) Computed “expected” tax expense (3,424) (492) (218) (218) Non-taxable income 2,055 295 131 131 Tax holiday 1,369 197 87 87 Tax effect of deferred tax and tax rates differential (2,325) (334) (3,618) (808) Actual income tax benefit (expense) (2,325) (334) (3,618) (808) |
Schedule of Deferred Tax Assets (Liabilities) | Tax effects of temporary differences that give rise to significant portions of the deferred tax assets (liabilities) as of December 31, 2019 and 2018 are presented below. December 31, 2019 December 31, 2018 Current RMB US$ RMB Accounts receivable 125 18 277 Other receivables — — — Inventory impairment 1,141 164 918 Estimated Loss due to Product Warranty — — — 1,266 182 1,195 Non-current Property, plant and equipment, principally due to differences in depreciation 493 71 634 Construction in progress, principally due to capitalized interest (1,980) (284) (2,208) Lease prepayments, principally due to differences in charges (310) (45) (320) Allowance for advanced to supplier-long term 16 2 16 Net loss carryforward — — 2,493 (1,781) (256) 615 Net deferred income tax assets (515) (74) 1,810 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions | |
Schedule of Related Party Transactions | Name of party Relationship Hongkong Ruishang International Trade Co., Ltd. (the “Hongkong Ruishang”) Shareholder of the Company(52.9%) Shandong Fuhua Investment Company Limited. (“Shandong Fuhua”) Shareholder of the Company(12.54%) Hongkong Ruishang International Trade Co., Ltd. (the “Hongkong Ruishang”) Subsidiary of Shandong SNTON Group Co., Ltd.(“SNTON Group”) Shandong SNTON Optical Materials Technology Co., Ltd.( “Shandong SNTON”) Subsidiary of Shandong SNTON Group Co., Ltd.(“SNTON Group”) |
Business and Credit Concentra_2
Business and Credit Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business and Credit Concentrations | |
Amount due from Customers, Percent of Outstanding Accounts Receivable | Each amount due from the following customers represented more than 10% of the outstanding accounts receivable on December 31, 2019 and 2018. Percentage of accounts receivable outstanding ()% December 31, 2019 Hunan Hori New Materials Co., Ltd. 19.3 % Eternal Electronic (Suzhou) Co., Ltd. 15.1 % Percentage of accounts receivable outstanding ()% December 31, 2018 Hunan Hori New Materials Co., Ltd. 17.7 % Eternal Electronic Material (Guangzhou) Co., Ltd. 12.4 % Eternal Electronic (Suzhou) Co., Ltd. 10.8 % Yunnan Dexin Zhiye Co., Ltd. 10.0 % |
Percentage of Total Purchases from Vendors | The following are the vendors that supplied 10% or more of our raw materials for each of the year ended December 31, 2019, 2018 and 2017: Percentage of total purchases ()% Supplier Item 2019 2018 2017 Sinopec Yizheng Chemical Fibre Company Limited PET resin and Additives 58.3 % 43.3 % 40.5 % Hefei Lucky Technology Industry Co., LTD. Jiangyin Branch PET resin and Additives PET resin and Additives 10.3 % 0.1 % — PetroChina Co Ltd North China chemical sales branch PET resin and Additives — 30.3 % — PetroChina Co Ltd East China chemical sales branch PET resin and Additives PET resin and Additives — — 28.6 % Weifang Power Supply Company. Electric power 8.3 % 8.4 % 10.3 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies | |
Schedule of Future Minimum Lease Payments for Operating Leases | Future minimum lease payments under non-cancelable operating leases as of December 31, 2019 are as follows: December 31, 2019 RMB US$ Operating lease commitments 26 4 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings (Loss) Per Share | |
Calculation of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share for the period/year ended December 31, 2019, 2018 and 2017 have been calculated as follows: 2019 2018 2017 RMB US$ RMB RMB Net (loss) income available to ordinary shareholders 11,363 1,632 (22,172) (46,003) Weighted average number of ordinary shares outstanding 3,265,837 3,265,837 3,265,837 3,265,837 Dilutive effect of share options — — — — Diluted weighted average number of ordinary shares outstanding 3,265,837 3,265,837 3,265,837 3,265,837 Basic and diluted earnings (loss) per share 3.48 0.50 (6.79) (14.09) |
Fuwei Films (Holdings) Co., L_2
Fuwei Films (Holdings) Co., Ltd (Parent Company) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fuwei Films (Holdings) Co., Ltd (Parent Company) | |
Schedule of Condensed Unaudited Balance Sheet | Condensed unaudited Balance Sheet as of December 31, 2019 and 2018 2019 2018 RMB US$ RMB Cash and cash equivalents 3 1 18 Other current assets 298,309 42,849 292,444 Investments in subsidiaries — — — Total assets 298,312 42,850 292,462 Current liabilities 70,943 10,190 69,560 Total shareholders’ equity 227,369 32,660 222,902 Total liabilities and shareholders’ equity 298,312 42,850 292,462 |
Schedule of Condensed Unaudited Statements of Operations | Condensed unaudited Statements of Operations (For the years ended December 31, 2019, 2018 and 2017) 2019 2018 2017 RMB US$ RMB RMB Interest income (expenses) (3) (1) (3) (7) General and administrative expenses — — (1,661) (2,399) Other income — — 715 — Loss before equity in undistributed earnings of subsidiaries (3) (1) (949) (2,406) Equity in earnings of subsidiaries 11,366 1,633 (21,223) (43,597) Net income 11,363 1,632 (22,172) (46,003) |
Schedule of Condensed Unaudited Statement of Cash Flows | Condensed unaudited Statement of Cash Flows (For the year ended December 31, 2019, 2018 and 2017) 2019 2018 2017 RMB US$ RMB RMB Cash flow from operating activities Net income 11,363 1,632 (22,172) (46,003) Adjustment to reconcile net income (loss) to net cash from operating activities: - Equity in earnings of subsidiaries (11,366) (1,633) 21,223 43,597 - Foreign exchange gain — — — — Changes in operating assets and liabilities: - Other current assets — — — — - Other current liabilities (12) (1) (814) (66) Net cash provided by operating activities (15) (2) (1,763) (2,472) Cash flow from financing activities Payments to related parties — — (639) 4,762 Proceeds from related parties — — 2,294 (2,379) Effect of exchange — — 1 (12) Net cash provided by (used in) financing activities — — 1,656 2,371 Net increase (decrease) in cash (15) (2) (107) (101) Cash: At beginning of year 18 3 125 226 At end of year 3 1 18 125 |
Unaudited Quarterly Data (Table
Unaudited Quarterly Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Unaudited Quarterly Data | |
Schedule of Unaudited Quarterly Data | Quarter Ended March 31, June 30, September 30, December 31, Total Fiscal year 2019 RMB US$ RMB US$ RMB US$ RMB US$ RMB US$ Revenue 81,074 12,080 88,117 12,836 79,586 11,593 86,843 12,474 335,620 48,209 Gross profit 12,404 1,848 18,629 2,714 21,590 3,145 30,987 4,451 83,610 12,010 Net income (loss) (3,374) (503) 951 139 3,443 502 10,343 1,487 11,363 1,632 Basic and diluted earnings (loss) per share (1.03) (0.15) 0.29 0.04 1.05 0.15 3.17 0.46 3.48 0.50 |
Principal Activities and Reor_2
Principal Activities and Reorganization (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | May 12, 2014shares | Aug. 14, 2013shares | Mar. 25, 2014USD ($)$ / sharesshares | Mar. 25, 2014CNY (¥)shares | May 14, 2014 |
Shandong Fuhua | |||||
Principal Activities And Reorganization [Line Items] | |||||
Indirectly Owns Ownership Through Transfer | 12.55% | ||||
Administration Company [Member] | |||||
Principal Activities And Reorganization [Line Items] | |||||
Shares holding Control Over Of Its Outstanding Shares Up For Sale At Public Auction | 6,912,503 | ||||
Percentage That holding Control Over Of Its Outstanding Shares Up For Sale At Public Auction | 52.90% | ||||
Transfer Of Ownership | 12.55% | ||||
Shandong SNTON [Member] | |||||
Principal Activities And Reorganization [Line Items] | |||||
Shares Sold Through Public Auction | 6,912,503 | 6,912,503 | 6,912,503 | ||
Percentage Of Ownership Acquired Through Auction | 52.90% | 52.90% | 52.90% | ||
Amount Of Shares Sold Through Public Auction | $ 16,573 | ¥ 101,800 | |||
Sale of Stock, Price Per Share | $ / shares | $ 2.40 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Practices - Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings and Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 25 years |
Buildings and Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 30 years |
Plant and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Plant and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 15 years |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Motor vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Practices - Additional Information (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 05, 2016$ / shares | |
Summary Of Significant Accounting Policies And Practices [Line Items] | |||||||||
Foreign currency translation rate | 6.9618 | 6.9618 | |||||||
Cash and cash equivalents | $ 8,744 | ¥ 60,871 | ¥ 8,908 | ||||||
Restricted cash | 3,663 | 25,500 | 38,000 | ||||||
Allowance for doubtful accounts | 120 | $ 265 | ¥ 2,467 | 833 | ¥ 1,847 | ¥ 3,213 | |||
Depreciation expense recorded in cost of goods sold | $ 5,954 | ¥ 41,451 | ¥ 44,509 | ¥ 42,877 | |||||
Depreciation recorded in cost of goods sold, percent | 37.30% | 37.30% | 42.70% | 42.70% | 39.60% | ||||
Depreciation recorded in administrative and selling expenses, percent | 62.70% | 62.70% | 57.30% | 57.30% | 60.40% | ||||
Loss on impairment of assets | $ 0 | ¥ 0 | ¥ 0 | ¥ 0 | |||||
Research and Development Expense | $ 1,357 | ¥ 9,449 | 14,553 | 9,464 | |||||
Value Added Tax Rate | 13.00% | 13.00% | |||||||
Working Capital Deficiency | $ 15,796 | ¥ 109,971 | |||||||
Net losses | $ (1,632) | ¥ (11,363) | $ 1,632 | ¥ 22,172 | ¥ 46,003 | ||||
Common Stock, Par or Stated Value Per Share | $ 0.519008 | $ 0.519008 | $ 0.519008 | ||||||
Scenario, Previously Reported [Member] | |||||||||
Summary Of Significant Accounting Policies And Practices [Line Items] | |||||||||
Common Stock, Par or Stated Value Per Share | $ 0.129752 |
Accounts and Bills Receivable_3
Accounts and Bills Receivable, net - Accounts Receivable (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Accounts and Bills Receivable, net | |||
Accounts receivable | $ 2,010 | ¥ 13,990 | ¥ 17,367 |
Less: Allowance for doubtful accounts | (120) | (833) | (1,847) |
Accounts receivable, net of allowance for doubtful accounts | 1,890 | 13,157 | 15,520 |
Bills receivable | 1,983 | 13,803 | 7,107 |
Accounts and bills receivable, net | $ 3,873 | ¥ 26,960 | ¥ 22,627 |
Accounts and Bills Receivable_4
Accounts and Bills Receivable, net - Allowance For Doubtful Accounts (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Accounts and Bills Receivable, net | ||||
Balance at beginning of year | $ 265 | ¥ 1,847 | ¥ 2,467 | ¥ 3,213 |
Bad debt (recovery) expense | (145) | (1,014) | (620) | (746) |
Write-offs | 0 | 0 | 0 | 0 |
Balance at end of year | $ 120 | ¥ 833 | ¥ 1,847 | ¥ 2,467 |
Inventories (Details)
Inventories (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Inventories | |||
Raw materials | $ 2,746 | ¥ 19,108 | ¥ 14,154 |
Work-in-progress | 165 | 1,152 | 1,473 |
Finished goods | 1,442 | 10,041 | 14,558 |
Consumables and spare parts | 128 | 892 | 610 |
Allowance for obsolescence | (1,093) | (7,609) | (6,120) |
Total inventories | $ 3,388 | ¥ 23,584 | ¥ 24,675 |
Prepayments and Other Receiva_3
Prepayments and Other Receivables (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Prepayments and Other Receivables | |||
Lease prepayments, current portion | $ 75 | ¥ 524 | ¥ 524 |
Other Receivables | 77 | 534 | 544 |
Total prepayments and other receivables | $ 152 | ¥ 1,058 | ¥ 1,068 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 130,754 | ¥ 910,280 | ¥ 896,415 |
Less: accumulated depreciation | (86,245) | (600,419) | (558,028) |
Impairment of plant and equipment | (1,037) | (7,219) | (7,219) |
Property, plant and equipment, net | 43,472 | 302,642 | 331,168 |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 9,813 | 68,319 | 68,319 |
Plant and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 117,458 | 817,715 | 808,717 |
Computer Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 454 | 3,163 | 3,027 |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | 2,820 | 19,631 | 14,528 |
Motor vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment | $ 209 | ¥ 1,452 | ¥ 1,824 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Narrative) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($)m² | Dec. 31, 2019CNY (¥)m² | Dec. 31, 2018CNY (¥) |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Area of Real Estate Property | 46,196 | 46,196 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Area of Real Estate Property | 74,251 | 74,251 | |
Property, Plant and Equipment [Member] | Use Rights [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Pledged Assets, Not Separately Reported, Real Estate | $ 7,110 | ¥ 49,495 | ¥ 52,047 |
Lease Prepayments (Details)
Lease Prepayments (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Lease Prepayments | |||
Non-current portion | $ 2,264 | ¥ 15,762 | ¥ 16,296 |
Current portion - amount charged to expense within a year | 75 | 524 | 524 |
Total lease prepayments of land use rights | $ 2,339 | ¥ 16,286 | ¥ 16,820 |
Lease Prepayments (Narrative) (
Lease Prepayments (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | |
Lease Prepayments | |||||
Amortization of Leased Asset | $ 75 | ¥ 524 | ¥ 524 | ¥ 524 | |
Finite-Lived Intangible Assets, Net | $ 2,111 | ¥ 14,696 | |||
Land Subject To Ground Leases Maturity Date Description | The land use rights for land with area of approximately 43,878 square meters, 30,373 square meters will expire in November 2050 and May 2053, respectively. | The land use rights for land with area of approximately 43,878 square meters, 30,373 square meters will expire in November 2050 and May 2053, respectively. |
Advance to suppliers (Narrative
Advance to suppliers (Narrative) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Advance to suppliers | |||
Advance to suppliers | $ 902 | ¥ 6,277 | ¥ 5,694 |
Advance to suppliers - long term, net | $ 221 | ¥ 1,542 | ¥ 1,542 |
SHORT-TERM BORROWINGS AND LON_3
SHORT-TERM BORROWINGS AND LONG-TERM LOAN (Summary of Bank Loans) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Less: amounts classified as short-term loan | |||
Short-term Debt | $ 9,337 | ¥ 65,000 | ¥ 64,950 |
Bank of Weifang [Member] | - July 17, 2018 to July 15, 2019 | |||
Less: amounts classified as short-term loan | |||
Short-term bank loans, fixed interest rate | 6.50% | 6.50% | |
Short-term Debt | $ 0 | ¥ 0 | 20,000 |
Bank of Weifang [Member] | - July 17, 2018 to July 17, 2019 | |||
Less: amounts classified as short-term loan | |||
Short-term bank loans, fixed interest rate | 6.50% | 6.50% | |
Short-term Debt | $ 0 | ¥ 0 | 29,950 |
Bank of Weifang [Member] | - June 21, 2018 to June 19, 2019 | |||
Less: amounts classified as short-term loan | |||
Short-term bank loans, fixed interest rate | 6.50% | 6.50% | |
Short-term Debt | $ 0 | ¥ 0 | 15,000 |
Bank of Weifang [Member] | - June 19, 2019 to June 18, 2020 | |||
Less: amounts classified as short-term loan | |||
Short-term bank loans, fixed interest rate | 6.50% | 6.50% | |
Short-term Debt | $ 2,155 | ¥ 15,000 | 0 |
Bank of Weifang [Member] | - July 15, 2019 to July 15, 2020 | |||
Less: amounts classified as short-term loan | |||
Short-term bank loans, fixed interest rate | 6.50% | 6.50% | |
Short-term Debt | $ 2,873 | ¥ 20,000 | 0 |
Bank of Weifang [Member] | - July 18, 2019 to July 9, 2020 | |||
Less: amounts classified as short-term loan | |||
Short-term bank loans, fixed interest rate | 6.50% | 6.50% | |
Short-term Debt | $ 4,309 | ¥ 30,000 | ¥ 0 |
SHORT-TERM BORROWINGS AND LON_4
SHORT-TERM BORROWINGS AND LONG-TERM LOAN (Short-Term Loans Outstanding) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Debt Disclosure [Abstract] | ||||
Property plant and equipment, Land use right | $ 9,337 | ¥ 65,000 | ¥ 64,950 | ¥ 50,000 |
Guarantee company | 0 | 0 | 0 | 0 |
Loans outstanding | $ 9,337 | ¥ 65,000 | ¥ 64,950 | ¥ 50,000 |
Notes Payable (Details)
Notes Payable (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Notes Payable, Current | $ 5,889 | ¥ 41,000 | ¥ 48,000 |
Weifang Bank [Member] | |||
Notes Payable to Bank, Current | $ 5,889 | ¥ 41,000 | ¥ 48,000 |
Notes Payable (Narrative) (Deta
Notes Payable (Narrative) (Details) - Dec. 31, 2019 ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
Bankers' acceptances | $ 5,889 | ¥ 41,000 |
Weifang Bank [Member] | ||
Deposits at SPD Bank | 3,663 | 25,500 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 13,817 | ¥ 95,000 |
Accrued Expenses and Other Pa_3
Accrued Expenses and Other Payables (Accrued expenses and other payables) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Accrued Expenses and Other Payables | |||
Other payables | $ 783 | ¥ 5,454 | ¥ 5,072 |
Accrued Liabilities and Other Liabilities, Total | $ 783 | ¥ 5,454 | ¥ 5,072 |
Revenues (By Geographical Locat
Revenues (By Geographical Location of Customers) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Revenues from External Customers [Line Items] | ||||
Net Sales | $ 48,209 | ¥ 335,620 | ¥ 333,522 | ¥ 290,706 |
Sales in China [Member] | ||||
Revenues from External Customers [Line Items] | ||||
Net Sales | 41,378 | 288,066 | 288,128 | 235,143 |
Sales in other countries principally Europe, Asia and North America [Member] | ||||
Revenues from External Customers [Line Items] | ||||
Net Sales | $ 6,831 | ¥ 47,554 | ¥ 45,394 | ¥ 55,563 |
Revenues (By Significant Types
Revenues (By Significant Types of Films) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Revenue from External Customer [Line Items] | ||||
Revenues From External Customer | $ 48,209 | ¥ 335,620 | ¥ 333,522 | ¥ 290,706 |
Percent of Total | 100.00% | 100.00% | 100.00% | 100.00% |
Stamping and Transfer Film [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues From External Customer | $ 16,760 | ¥ 116,681 | ¥ 129,548 | ¥ 116,396 |
Percent of Total | 34.80% | 34.80% | 38.90% | 40.00% |
Printing Film [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues From External Customer | $ 4,866 | ¥ 33,877 | ¥ 30,686 | ¥ 24,779 |
Percent of Total | 10.10% | 10.10% | 9.20% | 8.50% |
Metallized Film [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues From External Customer | $ 789 | ¥ 5,493 | ¥ 4,373 | ¥ 8,431 |
Percent of Total | 1.60% | 1.60% | 1.30% | 2.90% |
Specialty Film [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues From External Customer | $ 23,332 | ¥ 162,432 | ¥ 148,801 | ¥ 108,089 |
Percent of Total | 48.40% | 48.40% | 44.60% | 37.20% |
Base Film For Other Applications [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues From External Customer | $ 2,462 | ¥ 17,137 | ¥ 20,114 | ¥ 33,011 |
Percent of Total | 5.10% | 5.10% | 6.00% | 11.40% |
Revenues (Narrative) (Details)
Revenues (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Revenue from External Customer [Line Items] | ||||
Net Revenues Decrease Amount | ¥ 2,098 | |||
Net Revenues Decrease Percentage | 0.60% | 0.60% | ||
Net Revenues Decrease Due To Reduction In Average Sales Price | ¥ 817 | |||
Net Revenues Increase Due To Change In Sales Volume | ¥ 2,915 | |||
Revenues From External Customers Percentage Of Total | 100.00% | 100.00% | 100.00% | 100.00% |
Net revenues | $ 48,209 | ¥ 335,620 | ¥ 333,522 | ¥ 290,706 |
Decrease In Average Sales Price | 678 | |||
Increase In Sales Volume Factor | ¥ 14,309 | |||
Specialty film [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues From External Customers Percentage Of Total | 48.40% | 48.40% | 44.60% | |
Sales Decrease Amount | ¥ 13,631 | |||
Sales Decrease Percentage | 9.20% | |||
Net revenues | $ 23,332 | ¥ 162,432 | ¥ 148,801 | |
Sales in other countries principally Europe, Asia and North America [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Revenues From External Customers Percentage Of Total | 14.20% | 14.20% | 13.60% | |
Net revenues | $ 6,831 | ¥ 47,554 | ¥ 45,394 | ¥ 55,563 |
Increase In Average Sales Price | 553 | |||
Increase In Sales Volume Factor | ¥ 1,607 |
Depreciation and Amortization_2
Depreciation and Amortization (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Depreciation and Amortization | ||||
Cost of goods sold | $ 2,222 | ¥ 15,473 | ¥ 18,985 | ¥ 16,981 |
Selling expenses | 0 | 0 | 11 | |
Administrative expenses | 3,732 | 25,978 | 25,524 | 25,885 |
Depreciation | $ 5,954 | ¥ 41,451 | ¥ 44,509 | ¥ 42,877 |
Freight Costs (Narrative) (Deta
Freight Costs (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Freight costs | $ 36,199 | ¥ 252,010 | ¥ 278,834 | ¥ 263,606 |
Cargo and Freight [Member] | ||||
Freight costs | 486 | 3,380 | 1,729 | 4,495 |
Shipping and Handling [Member] | ||||
Freight costs | $ 1,250 | ¥ 8,705 | ¥ 8,441 | ¥ 8,527 |
Interest Expense (Details)
Interest Expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Interest Expense. | ||||
Interest cost capitalized | $ 0 | ¥ 0 | ¥ 0 | ¥ 0 |
Interest cost charged to expense | 1,277 | 8,892 | 9,766 | 9,453 |
Interest cost incurred | $ 1,277 | ¥ 8,892 | ¥ 9,766 | ¥ 9,453 |
Income Taxes (Operations in Jur
Income Taxes (Operations in Jurisdictions Other Than PRC) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Income Tax Contingency [Line Items] | ||||
Net income (loss) before income taxes | $ 1,966 | ¥ 13,688 | ¥ (18,554) | ¥ (45,195) |
Cayman Islands [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Net income (loss) before income taxes | (3) | (949) | (2,406) | |
British Virgin Islands [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Net income (loss) before income taxes | (1) | (3) | (7) | (5) |
PRC [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Net income (loss) before income taxes | $ 1,967 | ¥ 13,694 | ¥ (17,598) | ¥ (42,784) |
Income Taxes (Income Tax Benefi
Income Taxes (Income Tax Benefit (Expense)) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Income Taxes | ||||
Current | $ 0 | ¥ 0 | ¥ (2) | ¥ 0 |
Deferred | (334) | (2,325) | (3,616) | (808) |
Total | $ (334) | ¥ (2,325) | ¥ (3,618) | ¥ (808) |
Income Taxes (Income Tax Bene_2
Income Taxes (Income Tax Benefit Statutory Tax Rate) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Income Taxes | ||||
Income (loss) before income taxes | $ 1,966 | ¥ 13,688 | ¥ (18,554) | ¥ (45,195) |
Computed "expected" tax expense | (492) | (3,424) | (218) | (218) |
Non-taxable income | 295 | 2,055 | 131 | 131 |
Tax holiday | 197 | 1,369 | 87 | 87 |
Tax effect of deferred tax and tax rates differential | (334) | (2,325) | (3,618) | (808) |
Actual income tax benefit (expense) | $ (334) | ¥ (2,325) | ¥ (3,618) | ¥ (808) |
Income Taxes (Tax Effects of Te
Income Taxes (Tax Effects of Temporary Differences) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Current | |||
Accounts receivable | $ 18 | ¥ 125 | ¥ 277 |
Other receivables | 0 | 0 | 0 |
Inventory impairment | 164 | 1,141 | 918 |
Estimated Loss due to Product Warranty | 0 | 0 | 0 |
Deferred tax assets - current | 182 | 1,266 | 1,195 |
Non-current | |||
Property, plant and equipment, principally due to differences in depreciation | 71 | 493 | 634 |
Construction in progress, principally due to capitalized interest | (284) | (1,980) | (2,208) |
Lease prepayments, principally due to differences in charges | (45) | (310) | (320) |
Allowance for advanced to supplier-long term | 2 | 16 | 16 |
Net loss carryforward | 0 | 0 | 2,493 |
Deferred tax assets - non current | (256) | (1,781) | 615 |
Net deferred income tax assets | $ (74) | ¥ (515) | ¥ 1,810 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 12 Months Ended | |||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes | ||||||||
Effective Income Tax Rate Reconciliation At Preferential Income Tax Rate | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | ||
Effective Income Tax Rate Reconciliation At Standard Enterprise Income Tax Rate | 25.00% | 25.00% |
Related Party Transactions (Det
Related Party Transactions (Details) | Dec. 31, 2019 |
Hongkong Ruishang [Member] | |
Related Party Transaction [Line Items] | |
Ownership percentage | 52.90% |
Shandong Fuhua [Member] | |
Related Party Transaction [Line Items] | |
Ownership percentage | 12.54% |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - CNY (¥) ¥ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2014 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transactions | ||||
Additional Interest Rate Above Benchmark Rate | 20.00% | |||
Interest Expense, Related Party | ¥ 32,501 | ¥ 27,896 | ¥ 22,930 | |
Loans Payable, Noncurrent | ¥ 105,000 | ¥ 86,796 |
Pension Plan (Narrative) (Detai
Pension Plan (Narrative) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Pension Plan | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent | 20.00% | 20.00% | ||
Expenses related to defined contribution plan | $ 212 | ¥ 1,474 | ¥ 1,592 | ¥ 1,498 |
Business and Credit Concentra_3
Business and Credit Concentrations (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Receivable [Member] | Hunan Hori New Materials Co Ltd [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 19.30% | 17.70% | |
Accounts Receivable [Member] | Eternal Electronic Material (Guangzhou) Co Ltd [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 12.40% | ||
Accounts Receivable [Member] | Eternal Electronic Suzhou Co Ltd [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 15.10% | 10.80% | |
Accounts Receivable [Member] | Yunnan Dexin Zhiye Co., Ltd [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10.00% | ||
Raw Materials [Member] | Sinopec Yizheng Chemical Fibre Company Limited [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 58.30% | 43.30% | 40.50% |
Raw Materials [Member] | Hefei Lucky Technology Industry Co., LTD. Jiangyin Branch (Member) | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10.30% | 0.10% | |
Raw Materials [Member] | Petro china Co Ltd North China Chemical Sales Branch [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 0.00% | 30.30% | 0.00% |
Raw Materials [Member] | PetroChina Co Ltd East China chemical sales branch [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 28.60% | ||
Raw Materials [Member] | Weifang Power Supply Company [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 8.30% | 8.40% | 10.30% |
Business and Credit Concentra_4
Business and Credit Concentrations (Narrative) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) |
Concentration Risk [Line Items] | ||||
Advances on Inventory Purchases | $ 902 | ¥ 6,277 | ¥ 5,694 | |
Cash | 8,573 | 59,681 | ||
Sinopec Yizheng Chemical Fibre Company Limited [Member] | ||||
Concentration Risk [Line Items] | ||||
Advances on Inventory Purchases | $ 523 | ¥ 3,643 | $ 547 | ¥ 3,763 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - Dec. 31, 2019 ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
Commitments and Contingencies | ||
Operating lease commitments | $ 4 | ¥ 26 |
Commitments and Contingencies_3
Commitments and Contingencies (Narrative) (Details) ¥ in Thousands, $ in Thousands | Jul. 09, 2012CNY (¥) | Nov. 26, 2014CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Commitments and Contingencies | ||||||
Rental expenses | $ 4 | ¥ 26 | ¥ 114 | ¥ 160 | ||
Loss Contingency, Damages Sought, Value | ¥ 953 | ¥ 618 | ||||
Loss Contingency, Actions Taken by Defendant | Shandong Fuwei filed an appeal against the judgment in the First Intermediate People's Court of Beijing. The appeal was dismissed on January 23, 2013. On May 15, 2013, Beijing Daxing District People's Court heard the case and adjourned the hearing due to the fact that plaintiff failed to provide sufficient evidence. On June 25, 2013, the case was heard in Beijing Daxing District People's Court again and it was further adjourned due to plaintiff's failure to provide sufficient evidence. The case was then scheduled to be heard on August 7, 2013. However, on the day prior to re-scheduled hearing, Shandong Fuwei was informed by Beijing Daxing District People's Court that the hearing was adjourned further for the same reason that plaintiff failed to provide sufficient evidence. On April 21, 2014, the case was heard, and the plaintiff failed to provide sufficient evidence and the hearing was further adjourned. On May 28, 2014, the case was heard and the plaintiff provided some evidence. On August 25, 2014, the case was heard again. On November 5, 2014, the court accepted the withdrawal application from the plaintiff. On November 26, 2014, the plaintiff filed a second lawsuit in Beijing Daxing District People's Court against Shandong Fuwei over disputes arising from the Procurement Contract between the parties claiming RMB618 plus interest as a result of non- payment. The case was heard on January 26, 2015, where the two parties testified over the relevant evidence. The case was heard on March 3, 2015, October 26, 2015 and May 11, 2016. To date, the case has not been decided. | Shandong Fuwei filed an appeal against the judgment in the First Intermediate People's Court of Beijing. The appeal was dismissed on January 23, 2013. On May 15, 2013, Beijing Daxing District People's Court heard the case and adjourned the hearing due to the fact that plaintiff failed to provide sufficient evidence. On June 25, 2013, the case was heard in Beijing Daxing District People's Court again and it was further adjourned due to plaintiff's failure to provide sufficient evidence. The case was then scheduled to be heard on August 7, 2013. However, on the day prior to re-scheduled hearing, Shandong Fuwei was informed by Beijing Daxing District People's Court that the hearing was adjourned further for the same reason that plaintiff failed to provide sufficient evidence. On April 21, 2014, the case was heard, and the plaintiff failed to provide sufficient evidence and the hearing was further adjourned. On May 28, 2014, the case was heard and the plaintiff provided some evidence. On August 25, 2014, the case was heard again. On November 5, 2014, the court accepted the withdrawal application from the plaintiff. On November 26, 2014, the plaintiff filed a second lawsuit in Beijing Daxing District People's Court against Shandong Fuwei over disputes arising from the Procurement Contract between the parties claiming RMB618 plus interest as a result of non- payment. The case was heard on January 26, 2015, where the two parties testified over the relevant evidence. The case was heard on March 3, 2015, October 26, 2015 and May 11, 2016. To date, the case has not been decided. |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019¥ / shares | Dec. 31, 2019$ / shares | Sep. 30, 2019¥ / shares | Sep. 30, 2019$ / shares | Jun. 30, 2019¥ / shares | Jun. 30, 2019$ / shares | Mar. 31, 2019¥ / shares | Mar. 31, 2019$ / shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Earnings (Loss) Per Share | ||||||||||||
Net (loss) income available to ordinary shareholders | $ 1,632 | ¥ 11,363 | ¥ (22,172) | ¥ (46,003) | ||||||||
Weighted average number of ordinary shares outstanding | 3,265,837 | 3,265,837 | 3,265,837 | 3,265,837 | ||||||||
Dilutive effect of share options | $ 0 | ¥ 0 | ¥ 0 | ¥ 0 | ||||||||
Diluted weighted average number of ordinary shares outstanding | 3,265,837 | 3,265,837 | 3,265,837 | 3,265,837 | ||||||||
Basic and diluted earnings (loss) per share | (per share) | ¥ 3.17 | $ 0.46 | ¥ 1.05 | $ 0.15 | ¥ 0.29 | $ 0.04 | ¥ (1.03) | $ (0.15) | $ 0.50 | ¥ 3.48 | ¥ (6.79) | ¥ (14.09) |
Fuwei Films (Holdings) Co., L_3
Fuwei Films (Holdings) Co., Ltd (Parent Company) (Condensed Unaudited Balance Sheet) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
Cash and cash equivalents | $ 8,744 | ¥ 60,871 | ¥ 8,908 | |||
Total assets | 66,934 | 465,971 | 454,682 | |||
Current liabilities | 36,699 | 255,487 | 255,323 | |||
Total shareholders' equity | 29,906 | 208,194 | 196,831 | |||
Total liabilities and shareholders' equity | 66,934 | 465,971 | 454,682 | |||
Parent Company [Member] | ||||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||||
Cash and cash equivalents | 1 | 3 | $ 3 | 18 | ¥ 125 | ¥ 226 |
Other current assets | 42,849 | 298,309 | 292,444 | |||
Investments in subsidiaries | 0 | 0 | 0 | |||
Total assets | 42,850 | 298,312 | 292,462 | |||
Current liabilities | 10,190 | 70,943 | 69,560 | |||
Total shareholders' equity | 32,660 | 227,369 | 222,902 | |||
Total liabilities and shareholders' equity | $ 42,850 | ¥ 298,312 | ¥ 292,462 |
Fuwei Films (Holdings) Co., L_4
Fuwei Films (Holdings) Co., Ltd (Parent Company) (Condensed unaudited Statements of Operations) (Details) - Parent Company [Member] ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Condensed Income Statements, Captions [Line Items] | ||||
Interest income (expenses) | $ (1) | ¥ (3) | ¥ (3) | ¥ (7) |
General and administrative expenses | (1,661) | (2,399) | ||
Other income | 0 | 0 | 715 | 0 |
Loss before equity in undistributed earnings of subsidiaries | (1) | (3) | (949) | (2,406) |
Equity in earnings of subsidiaries | 1,633 | 11,366 | (21,223) | (43,597) |
Net income | $ 1,632 | ¥ 11,363 | ¥ (22,172) | ¥ (46,003) |
Fuwei Films (Holdings) Co., L_5
Fuwei Films (Holdings) Co., Ltd (Parent Company) (Condensed unaudited Statement of Cash Flows) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Changes in operating assets and liabilities: | ||||
Net cash provided by operating activities | $ 7,809 | ¥ 54,366 | ¥ 25,381 | ¥ 10,827 |
Cash flow from financing activities | ||||
Proceeds from related parties | 662 | 4,606 | (36,382) | 19,327 |
Effect of exchange | (85) | 0 | (2,014) | 1,760 |
Net cash provided by (used in) financing activities | (336) | (2,344) | (41,332) | (26,961) |
At beginning of period/year | 8,908 | |||
At end of period/year | 8,744 | 60,871 | 8,908 | |
Parent Company [Member] | ||||
Cash flow from operating activities | ||||
Net income | 1,632 | 11,363 | (22,172) | (46,003) |
Adjustment to reconcile net income (loss) to net cash from operating activities: | ||||
Equity in earnings of subsidiaries | (1,633) | (11,366) | 21,223 | 43,597 |
Foreign exchange gain | 0 | 0 | 0 | 0 |
Changes in operating assets and liabilities: | ||||
Other current assets | 0 | 0 | 0 | 0 |
Other current liabilities | (1) | (12) | (814) | (66) |
Net cash provided by operating activities | (2) | (15) | (1,763) | (2,472) |
Cash flow from financing activities | ||||
Payments to related parties | (639) | 4,762 | ||
Proceeds from related parties | 2,294 | (2,379) | ||
Effect of exchange | 0 | 0 | 1 | (12) |
Net cash provided by (used in) financing activities | 1,656 | 2,371 | ||
Net increase (decrease) in cash | (2) | (15) | (107) | (101) |
At beginning of period/year | 3 | 18 | 125 | 226 |
At end of period/year | $ 1 | ¥ 3 | ¥ 18 | ¥ 125 |
Fuwei Films (Holdings) Co., L_6
Fuwei Films (Holdings) Co., Ltd (Parent Company) (Narrative) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) |
Fuwei Films (Holdings) Co., Ltd (Parent Company) | ||
Required percent of accumulated profits, reserve | 10.00% | 10.00% |
Required statutory general reserve, percent of registered capital | 50.00% | 50.00% |
Required statutory general reserve, percent minimum remaining after issuance of shares or increase in par value | 25.00% | 25.00% |
Statutory public welfare fund required amount of profit, percent | 5.00% | 5.00% |
Statutory surplus reserve | $ 5,378 | ¥ 37,441 |
Restricted net assets, percent of consolidated net assets | 75.00% | 75.00% |
Unaudited Quarterly Data (Detai
Unaudited Quarterly Data (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2019CNY (¥)¥ / shares | Sep. 30, 2019USD ($)$ / shares | Sep. 30, 2019CNY (¥)¥ / shares | Jun. 30, 2019USD ($)$ / shares | Jun. 30, 2019CNY (¥)¥ / shares | Mar. 31, 2019USD ($)$ / shares | Mar. 31, 2019CNY (¥)¥ / shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2019CNY (¥)¥ / shares | Dec. 31, 2018¥ / shares | Dec. 31, 2017¥ / shares | |
Unaudited Quarterly Data | ||||||||||||
Revenue | $ 12,474 | ¥ 86,843 | $ 11,593 | ¥ 79,586 | $ 12,836 | ¥ 88,117 | $ 12,080 | ¥ 81,074 | $ 48,209 | ¥ 335,620 | ||
Gross profit | 4,451 | 30,987 | 3,145 | 21,590 | 2,714 | 18,629 | 1,848 | 12,404 | 12,010 | 83,610 | ||
Net income (loss) | $ 1,487 | ¥ 10,343 | $ 502 | ¥ 3,443 | $ 139 | ¥ 951 | $ (503) | ¥ (3,374) | $ 1,632 | ¥ 11,363 | ||
Basic and diluted earnings (loss) per share | (per share) | $ 0.46 | ¥ 3.17 | $ 0.15 | ¥ 1.05 | $ 0.04 | ¥ 0.29 | $ (0.15) | ¥ (1.03) | $ 0.50 | ¥ 3.48 | ¥ (6.79) | ¥ (14.09) |