China-based plastic film manufacturer and distributor Fuwei Films has reported RMB103.1m ($16.3m) in net sales for the first quarter (Q1) of the fiscal year 2022 (FY22).

The figure represents a 1.5% increase from the corresponding period of the prior year.

For the three months to 31 March, sales from the company’s speciality films were RMB71.9m, representing 69.8% of its total revenues, compared with 63.9% of its total revenues in Q1 2021.

Fuwei Films recorded a gross profit of RMB30.2m in Q1 2022, compared with a gross profit of RMB42.5m in the prior year, while its gross margin for the quarter was 29.3%, against a gross margin of 41.8% in Q1 2021.

Net income attributable to the company declined from RMB31.4m in Q1 2021 to RMB17.1m in the first quarter of this year.

The company’s operating income for Q1 2022 was RMB16.45m, while its basic and diluted net earnings for each share were RMB5.24, down from RMB9.60 in the first quarter of FY21.

Fuwei Films chairman and CEO Lei Yan said: “Despite the oversupply in the marketplace and the ongoing coronavirus pandemic, we achieved positive trends in overall sales, especially sales of speciality films, including a base film for dry film, which accounted for 69.8% of our total revenues.

“The base film is a high value-added and differentiated product, which is used to produce dry films that are applied to printed circuit boards.

“The sales increase of base film for dry films demonstrates that our customers well-recognise the quality of our products. We believe the order growth also helps improve the company’s financial performance.”

Fuwei Films manufactures plastic films using the biaxial-oriented stretch technique via its wholly owned subsidiary, Shandong Fuwei.

These films are primarily used for packaging food, medicine, cosmetics, tobacco and alcohol, as well as products in other industries.