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Fuwei Films Announces Third Quarter 2007 Financial Results
Date:11/12/2007

ults,'' Mr. He said. ''Our trial production line continued to progress on schedule, with initial production expected by the end of December this year. We believe that the new line, together with our existing lines, will add to our specialty film product mix.''

Third Quarter and Nine Month 2007 Results

Net sales for third quarter 2007 were US$14.3 million (RMB 107.7 million), an increase of 12.8 percent over the same period in 2006. The increase in net sales was primarily due to production from the leased line. Net sales for the nine months ended September 30, 2007 were US$42.8 million (RMB 327.8 million), an increase of 4 percent from US$39.4 million (RMB 315.4 million) recorded in the same period in 2006.

Sales of specialty films of US$5.4 million (RMB 41 million) accounted for 38.1 percent of the total sales in third quarter 2007.

Overseas sales in third quarter 2007 were US$2.5 million (RMB 18.9 million), or 17.6 percent of the total sales, compared with 22.5 percent in the third quarter 2006. The Company, along with many Chinese companies in similar industries, was negatively impacted by the reduction in the export tax rebate, which was reduced from 11 percent to 5 percent on July 1, 2007. Overseas sales during the nine months ended September 30, 2007 were US$11.8 million (RMB 90.6 million) and accounted for 27.6 percent of the total net sales, compared with US$8.5 million (RMB 67.9 million), 21.5 percent of the total net sales of the corresponding period of last year.

Gross Profit rose 5.4 percent to US$3.1 million (RMB 23.6 million) in third quarter 2007 from US$ 2.8 million (RMB 22.4 million) in the same quarter last year. Gross profit for the nine months ended September 30, 2007 was US$10.5 million (RMB 80.5 million), compared with US$ 9.3 million (RMB 74.7 million) in the same period last year, representing a 7.8 percent increase.

Net income for the third quarter of 2007 was US$1.8 million (RMB 13.9 million), a decline of
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SOURCE Fuwei Films (Holdings) Co. Limited
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