Fuwei Films announced that as a result of administrative issues regarding the review of its Annual Report to be filed with the SEC, it was not able to report financial results on Tuesday, April 23, 2019 as previously announced. The company is working with its auditors regarding these matters and will provide an updated reporting date and time as soon as feasible.
Fuwei Films announced that the company has entered into a Securities Purchase Agreement with Gold Glory Blockchain, a California-headquartered company focused on blockchain technology applications and digital asset services. The Agreement will result in the issuance by the company of 9.5M new ordinary shares in exchange for all outstanding shares of Gold Glory. Fuwei Films concurrently entered into a Share Transfer Agreement with Hong Kong Ruishang International Trade, the current majority owner of FFHL's equity shares. Pursuant to this Agreement, FFHL agrees to sell, assign and deliver all shares of Fuwei Films, a subsidiary directly owned by Fuwei Films plus cash consideration of $3M to Ruishang, in exchange for all 1,728,126 ordinary shares of Fuwei Films owned by Ruishang, representing 52.9% of the total Fuwei Films outstanding shares. This transaction will effectively transfer the existing business of Fuwei Films to Ruishang, after which Fuwei Films will only own the shares of Gold Glory.
Fuwei Films announced that the Company has received higher orders for the Q4 from its major customer, Eternal Electronic Material. Based on the expanded demand, Fuwei Films expects that fourth quarter sales to Eternal Electronic will be approximately 30% higher as compared to the same period of 2017. As a result, the Company expects 2018 annual sales to Eternal Electronic to be approximately 27% higher than 2017.