Fuwei Films Announces Identity of New Controlling Shareholder
BEIJING, March 28, 2014 /PRNewswire/ --Fuwei Films (Holdings) Co., Ltd. (NASDAQ: FFHL, "Fuwei Films" or the "Company") announced today that it has learned that Shandong SNTON Optical Materials Technology Co., Ltd. (the "Bidder") was the successful bidder in the fifth public auction of 6,912,503 shares (or 52.9%) of its outstanding ordinary shares held on March 25, 2014. The winning bid was RMB101,800,000 (approximately US$16,572,787) or approximately US$2.40 per ordinary share. The Company previously announced that it had become aware that the fifth public auction by which the Company's controlling shareholder, the Weifang State-owned Assets Operation Administration Company, a wholly-owned subsidiary of Weifang State-owned Asset Management and Supervision Committee sought to sell control over, resulted in the acceptance of a successful bid.
According to publicly available information in the People's Republic of China, the Bidder is an optical BOPET film manufacturer established in August 2011 with registered capital of RMB260 million. The parent company of the Bidder is Shandong SNTON Group Co., Ltd. (the Group), which was founded in January 1987. The Group mainly specializes in metal products, fine chemicals, new materials and real estate development.
About Fuwei Films
Fuwei Films conducts its business through its wholly owned subsidiary, Fuwei Films (Shandong) Co., Ltd. ("Fuwei Shandong"). Fuwei Shandong develops, manufactures and distributes high-quality plastic films using the biaxial oriented stretch technique, otherwise known as BOPET film (biaxially oriented polyethylene terephthalate). Fuwei Films' BOPET film is widely used to package food, medicine, cosmetics, tobacco, and alcohol, as well as in the imaging, electronics, and magnetic products industries.
This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to risks. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the U.S. Securities and Exchange Commission which, among other things, include both the short and long-term effects of the global financial crisis on the Company and the BOPET film industry; competition in the BOPET film industry; growth of, and risks inherent in, the BOPET film industry in China; uncertainty as to future profitability and our ability to obtain adequate financing for our planned capital expenditure requirements; uncertainty as to our ability to continuously develop new BOPET film products and keep up with changes in BOPET film technology; risks associated with possible defects and errors in our products; uncertainty as to our ability to protect and enforce our intellectual property rights; uncertainty as to our ability to attract and retain qualified executives and personnel; and uncertainty in acquiring raw materials on time and on acceptable terms, particularly in view of the volatility in the prices of petroleum products in recent years. The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release. Actual results of our operations may differ materially from information contained in the forward-looking statements as a result of the risk factors.
For more information, please contact:
Ms Xiaoli Yu
Investor Relations Officer
In the U.S.:
Ms. Vivian Chen
SOURCE Fuwei Films (Holdings) Co., Ltd.