|  ̈ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------------|

| x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|--------------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

|  ̈ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|---------------------------------------------------------------------------------------------|

----

----

| Title of each class | Name of each exchange on which registered |
|---------------------|-------------------------------------------|
|                |                                      |
| Ordinary Shares     | NASDAQ Global Market                      |

| U.S. GAAP | x | International Financial Reporting Standards as issued bythe International Accounting Standards Board |   ̈  | Other |      ̈ |
|-----------|---|------------------------------------------------------------------------------------------------------|--------------------|-------|---------------------------|

----

----

|   ITEM | DESCRIPTION                   |   | PAGE   |
|-------------|-------------------------------|--------|--------|
|        | EXPLANATORY NOTE              |   |   |
|        | INTRODUCTION                  |   |   |
|        | CURRENCIES AND EXCHANGE RATES |   |   |
|        | PART III                      |   |   |
| Item 17     | Financial Statements          |   |   |
| Item 18     | Financial Statements          |   | 6      |
| Item 19     | Exhibits                      |   | 6      |

----

|   | · | “Fuwei”, “Company”, “us” or “we” refer to Fuwei Films (Holding) Co., Ltd. The term “you” refers to holders of our ordinary shares. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | “China” or “PRC” and the “Chinese government” refer to the People’s Republic of China and its government. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | All references to “Renminbi,” or “RMB” are to the legal currency of China, all references to “U.S. dollars,” “dollars,” “$” or “US” are to the legal currency of the United States and all references to “Hong Kong dollars” or “HK$” are to the legal currency of Hong Kong. Any discrepancies in any table between totals and sums of the amounts listed are due to rounding. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | “BOPET” refers to the Biaxially Oriented Polyester Film. |
|--------|--------|----------------------------------------------------------------------|

|              |   | Average           |   |   | High   |   |   | Low    |   |   | Period-end |   |
|-------------------|--------|-------------------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|
|              |   | (Rmb per US$1.00) |   |
| 2006(1)           |   |              | 7.9723 |   |   |   | 8.0702 |   |   |   | 7.8041     |   |   |   | 7.8041 |   |
| 2007(1)           |   |              | 7.6038 |   |   |   | 7.7881 |   |   |   | 7.2946     |   |   |   | 7.2946 |   |
| 2008(1)           |   |              | 6.9623 |   |   |   | 7.2941 |   |   |   | 6.7480     |   |   |   | 6.8542 |   |
| 2009(1)           |   |              | 6.8311 |   |   |   | 6.8368 |   |   |   | 6.8242     |   |   |   | 6.8270 |   |
| 2010(1)           |   |              | 6.7788 |   |   |   | 6.8336 |   |   |   | 6.5820     |   |   |   | 6.6118 |   |
| September 2010(2) |   |              | 6.7581 |   |   |   | 6.8055 |   |   |   | 6.6746     |   |   |   | 6.6981 |   |
| October 2010(2)   |   |              | 6.6773 |   |   |   | 6.6905 |   |   |   | 6.6310     |   |   |   | 6.6718 |   |
| November 2010(2)  |   |              | 6.6626 |   |   |   | 6.6862 |   |   |   | 6.6120     |   |   |   | 6.6714 |   |
| December 2010(2)  |   |              | 6.6610 |   |   |   | 6.6681 |   |   |   | 6.5820     |   |   |   | 6.6118 |   |
| January 2011(2)   |   |              | 6.6046 |   |   |   | 6.6286 |   |   |   | 6.5483     |   |   |   | 6.5833 |   |
| February 2011(2)  |   |              | 6.5811 |   |   |   | 6.5948 |   |   |   | 6.5397     |   |   |   | 6.5839 |   |
| March 2011(2) (3) |   |              | 6.5691 |   |   |   | 6.5755 |   |   |   | 6.5560     |   |   |   | 6.5560 |   |

| (1) | Annual averages are calculated by averaging the rates on the last business day of each month during the relevant period.  |
|-----|--------------------------------------------------------------------------------------------------------------------------------|

| (2) | Monthly average is calculated by averaging the daily rates during the relevant period.  |
|-----|----------------------------------------------------------------------------------------------|

| (3) | As of March 24, 2011, the exchange rate was 6.5560. |
|-----|-----------------------------------------------------|

----

| No.    |   | Description                                                                                                                     |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                            |
| 12.1   |   | Certification of Chief Executive Officer required by Section 302 of the Sarbanes-Oxley Act of 2002.                             |
|   |   |                                                                                                                            |
| 12.2   |   | Certification of Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act of 2002.                             |
|   |   |                                                                                                                            |
| 13.1   |   | Certification of Chief Executive Officer and Chief Financial Officer required by Section 906 of the Sarbanes-Oxley Act of 2002. |

----

|   | Fuwei Films (Holdings) Co., Ltd.         |
|--------|------------------------------------------|
|   |                                     |   |
|   | By:                                      | /s/ Xiaoan He |
|   |                                     | Name: Xiaoan He |
|   | Title: Chairman, Chief Executive Officer |
|   |                                     |   |
|   | By:                                      | /s/ Xiuyong Zhang |
|   |                                     | Name: Xiuyong Zhang |
|   | Title: Chief Financial Officer           |

----

| Audited Consolidated Financial Statements of Fuwei Films (Holdings) Co., Ltd. and subsidiaries                              |   | Page   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|--------|
| Report of Independent Registered Public Accounting Firm — Kabani & Company, Inc.                                  |   | F-2    |
|                                                                                                                        |   |   |
| Consolidated Balance Sheets as of December 31, 2009 and 2010                                                                |   | F-3    |
|                                                                                                                        |   |   |
| Consolidated Statements of Operations and Comprehensive Income (Loss) for the years ended December 31, 2010, 2009 and 2008. |   | F-4    |
|                                                                                                                        |   |   |
| Consolidated Statements of Equity for the years ended December 31, 2010, 2009 and 2008.                                     |   | F-5    |
|                                                                                                                        |   |   |
| Consolidated Statements of Cash Flows for the years ended December 31, 2010, 2009 and 2008.                                 |   | F-6    |
|                                                                                                                        |   |   |
| Notes to the Consolidated Financial Statements for the years ended December 31, 2010, 2009 and 2008.                        |   | F-7-27 |

----

----

|                                                                                                          |   | Notes  |   | December 31, 2010 |    |   | December 31, 2009 |   |
|---------------------------------------------------------------------------------------------------------------|--------|--------|--------|-------------------|---------|--------|-------------------|--------|
|                                                                                                          |   |   |   | RMB               |    |   | US$               |   |   | RMB |   |
| ASSETS                                                                                                        |   |
| Current assets                                                                                                |   |   |   |              |    |   |              |   |   |   |   |
| Cash and cash equivalents                                                                                     |   |   |   |              | 171,227 |   |              |   | 25,897 |   |   |   | 26,804 |   |
| Restricted cash                                                                                               |   |   |   |              | 1,314   |   |              |   | 199 |   |   |   | 12,541 |   |
| Accounts and bills receivable, net                                                                            |   | 4      |   |              | 25,482  |   |              |   | 3,854 |   |   |   | 28,785 |   |
| Inventories                                                                                                   |   | 5      |   |              | 52,577  |   |              |   | 7,952 |   |   |   | 45,039 |   |
| Advance to suppliers                                                                                          |   |   |   |              | 10,974  |   |              |   | 1,660 |   |   |   | 3,956 |   |
| Prepayments and other receivables                                                                             |   | 6      |   |              | 540     |   |              |   | 82 |   |   |   | 957 |   |
| Deferred tax assets – current                                                                           |   |   |   |              | 1,344   |   |              |   | 203 |   |   |   | 1,198 |   |
| Total current assets                                                                                          |   |   |   |              | 263,458 |   |              |   | 39,847 |   |   |   | 119,282 |   |
|                                                                                                          |   |   |   |              |    |   |              |   |   |   |   |   |   |   |
| Plant, properties and equipment, net                                                                          |   | 7      |   |              | 284,891 |   |              |   | 43,088 |   |   |   | 318,600 |   |
| Construction in progress                                                                                      |   | 7      |   |              | 197,193 |   |              |   | 29,824 |   |   |   | 237,118 |   |
| Lease prepayments, net                                                                                        |   | 8      |   |              | 21,024  |   |              |   | 3,180 |   |   |   | 21,548 |   |
| Advanced to suppliers - Long term                                                                             |   |   |   |              | 2,787   |   |              |   | 422 |   |   |   | 2,367 |   |
| Goodwill                                                                                                      |   | 9      |   |              | 10,276  |   |              |   | 1,554 |   |   |   | 10,276 |   |
| Long-term deposit                                                                                             |   | 10     |   |              | 16,760  |   |              |   | 2,535 |   |   |   | 21,000 |   |
| Deferred tax assets - non current                                                                             |   | 17     |   |              | 1,763   |   |              |   | 267 |   |   |   | 5,318 |   |
|                                                                                                          |   |   |   |              |    |   |              |   |   |   |   |   |   |   |
| Total assets                                                                                                  |   |   |   |              | 798,152 |   |              |   | 120,716 |   |   |   | 735,509 |   |
| LIABILITIES AND EQUITY                                                                                        |   |
| Current liabilities                                                                                           |   |   |   |              |    |   |              |   |   |   |   |   |   |   |
| Short-term borrowings                                                                                         |   | 11     |   |              | 142,000 |   |              |   | 21,477 |   |   |   | 153,179 |   |
| Accounts payables                                                                                             |   |   |   |              | 14,296  |   |              |   | 2,162 |   |   |   | 25,898 |   |
| Advance from customers                                                                                        |   |   |   |              | 37,291  |   |              |   | 5,640 |   |   |   | 12,608 |   |
| Accrued expenses and other payables                                                                           |   | 12     |   |              | 20,993  |   |              |   | 3,175 |   |   |   | 6,981 |   |
| Deferred tax liabilities                                                                                      |   | 17     |   |              | 1,822   |   |              |   | 276 |   |   |   | - |   |
|                                                                                                          |   |   |   |              | 216,402 |   |              |   | 32,730 |   |   |   | 198,666 |   |
| Long-term loans                                                                                               |   | 11     |   |              | 30,000  |   |              |   | 4,537 |   |   |   | 25,000 |   |
|                                                                                                          |   |   |   |              |    |   |              |   |   |   |   |   |   |   |
| Total liabilities                                                                                             |   |   |   |              | 246,402 |   |              |   | 37,267 |   |   |   | 223,666 |   |
|                                                                                                          |   |   |   |              |    |   |              |   |   |   |   |   |   |   |
| Commitments and contingencies                                                                                 |   | 22     |   |              |    |   |              |   |   |   |   |   |   |   |
|                                                                                                          |   |   |   |              |    |   |              |   |   |   |   |   |   |   |
| Equity                                                                                                        |   |   |   |              |    |   |              |   |   |   |   |   |   |   |
| Shareholders’ equity                                                                                    |   |   |   |              |    |   |              |   |   |   |   |   |   |   |
| Registered capital(of US$0.129752 par value; 20,000,000 shares authorized; 13,062,500 issued and outstanding) |   |   |   |              | 13,323  |   |              |   | 2,015 |   |   |   | 13,323 |   |
| Additional paid-in capital                                                                                    |   |   |   |              | 311,907 |   |              |   | 47,174 |   |   |   | 311,907 |   |
| Statutory reserve                                                                                             |   |   |   |              | 35,195  |   |              |   | 5,323 |   |   |   | 29,338 |   |
| Retained earnings                                                                                             |   |   |   |              | 190,933 |   |              |   | 28,878 |   |   |   | 156,006 |   |
| Cumulative translation adjustment                                                                             |   |   |   |              | 1,186   |   |              |   | 179 |   |   |   | 993 |   |
| Total shareholders’ equity                                                                              |   |   |   |              | 552,544 |   |              |   | 83,569 |   |   |   | 511,567 |   |
| Non-controlling interest                                                                                      |   |   |   |              | (794    | )      |              |   | (120 | ) |   |   | 276 |   |
| Total equity                                                                                                  |   |   |   |              | 551,750 |   |              |   | 83,449 |   |   |   | 511,843 |   |
| Total liabilities and equity                                                                                  |   |   |   |              | 798,152 |   |              |   | 120,716 |   |   |   | 735,509 |   |

----

|                                                                 |   |   |   | 2010   |       |   | 2009   |   |       | 2008   |   |
|----------------------------------------------------------------------|--------|--------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                                                                 |   | Note   |   | RMB    |       |   | US$    |   |       | RMB    |   |   | RMB |   |
|                                                                 |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Revenues, net                                                        |   | 13     |   |   | 501,458    |   |   |   | 75,843     |   |   |   | 320,731 |   |   |   | 447,255 |   |
| Cost of goods sold                                                   |   | 14,15  |   |   | (370,905   | )      |   |   | (56,098    | )      |   |   | (296,118 | ) |   |   | (376,923 | ) |
|                                                                 |   |   |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |
| Gross profit                                                         |   |   |   |   | 130,553    |   |   |   | 19,745     |   |   |   | 24,612 |   |   |   | 70,332 |   |
|                                                                 |   |   |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |
| Operating expenses                                                   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |
| - Distribution expenses                                              |   | 14,15  |   |   | (21,642    | )      |   |   | (3,273     | )      |   |   | (15,227 | ) |   |   | (15,604 | ) |
| - Administrative expenses                                            |   | 14     |   |   | (49,281    | )      |   |   | (7,453     | )      |   |   | (25,932 | ) |   |   | (30,124 | ) |
|                                                                 |   |   |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |
| Total operating expenses                                             |   |   |   |   | (70,922    | )      |   |   | (10,727    | )      |   |   | (41,159 | ) |   |   | (45,728 | ) |
|                                                                 |   |   |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |
| Operating income/(loss)                                              |   |   |   |   | 59,630     |   |   |   | 9,019      |   |   |   | (16,547 | ) |   |   | 24,604 |   |
|                                                                 |   |   |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |
| Other income/(expense)                                               |   |   |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |
| - Interest income                                                    |   |   |   |   | 544        |   |   |   | 82         |   |   |   | 154 |   |   |   | 688 |   |
| - Interest expense                                                   |   | 16     |   |   | (8,846     | )      |   |   | (1,338     | )      |   |   | (6,540 | ) |   |   | (3,995 | ) |
| - Others income, net                                                 |   |   |   |   | (575       | )      |   |   | (87        | )      |   |   | (92 | ) |   |   | (174 | ) |
|                                                                 |   |   |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |
| Total other income/(expense)                                         |   |   |   |   | (8,877     | )      |   |   | (1,343     | )      |   |   | (6,478 | ) |   |   | (3,481 | ) |
|                                                                 |   |   |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |
| Income before income tax benefit/(expense)                           |   |   |   |   | 50,754     |   |   |   | 7,676      |   |   |   | (23,024 | ) |   |   | 21,123 |   |
|                                                                 |   |   |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |
| Income tax benefit/(expense)                                         |   | 17     |   |   | (11,059    | )      |   |   | (1,673     | )      |   |   | 4,064 |   |   |   | (2,966 | ) |
|                                                                 |   |   |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |
| Net income/(loss)                                                    |   |   |   |   | 39,695     |   |   |   | 6,004      |   |   |   | (18,960 | ) |   |   | 18,157 |   |
|                                                                 |   |   |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |
| Net income/(loss) attributable to non-controlling interest           |   |   |   |   | (1,088     | )      |   |   | (165       | )      |   |   | 3 |   |   |   | - |   |
|                                                                 |   |   |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |
| Net income/(loss) attributable to the Company                        |   |   |   |   | 40,783     |   |   |   | 6,168      |   |   |   | (18,963 | ) |   |   | 18,157 |   |
|                                                                 |   |   |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |
| Other comprehensive income/(loss)                                    |   |   |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |
| - Foreign currency translation adjustments                           |   |   |   |   | 211        |   |   |   | 32         |   |   |   | (68 | ) |   |   | (87 | ) |
|                                                                 |   |   |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |
| Comprehensive income/(loss) attributable to non-controlling interest |   |   |   |   | (1,070     | )      |   |   | 162        |   |   |   | 3 |   |   |   | - |   |
| Comprehensive income/(loss) attributable to the Company              |   |   |   |   | 40,976     |   |   |   | 6,197      |   |   |   | (19,032 | ) |   |   | 18,070 |   |
|                                                                 |   |   |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |
| Earnings (loss) per share, Basic and diluted                         |   | 23     |   |   | 3.12       |   |   |   | 0.47       |   |   |   | (1.45 | ) |   |   | 1.39 |   |
|                                                                 |   |   |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |
| Weighted average number ordinary shares,                             |   |   |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |
| Basic and diluted                                                    |   | 23     |   |   | 13,062,500 |   |   |   | 13,062,500 |   |   |   | 13,062,500 |   |   |   | 13,062,500 |   |

----

|                                          |             | Ordinary Shares |       |   | Additional paid-in capital |   |                    | Statutoryreserve |   |         | Retained earnings |   |   | Accumulated othercomprehensiveincome |   |   | Total shareholders'equity |   |    |   |   |   |   |   |
|----------------------------------------------------|------------------|-----------------|------------|--------|----------------------------|--------|-------------------------|------------------|--------|--------------|-------------------|--------|--------|--------------------------------------|--------|--------|---------------------------|--------|---------|--------|--------|--------|--------|--------|
|                                               | Number of shares |            |       | Amount |                       |   | Non-controllinginterest |             |   | Total equity |              |
|                                               |             |            |       | RMB    |                       |   | RMB                     |             |   | RMB          |              |   | RMB    |                                 |   | RMB    |                      |   | RMB     |   |   | RMB    |   |   | RMB |   |
| Balance as of December 31, 2007                    |             |            | 13,062,500 |   |                       |   | 13,323                  |             |   |         | 311,907           |   |   |                                 | 26,924 |   |                      |   | 159,228 |   |   |   | 1,148  |   |   |   | 512,531 |   |   |   | - |   |   |   | 512,531 |   |
|                                               |             |            |       |   |                       |   |                    |             |   |         |              |   |   |                                 |   |   |                      |   |    |   |   |   |   |   |   |   |   |   |   |   | - |   |   |   |   |   |
| Net income                                         |             |            | -          |   |                       |   | -                       |             |   |         | -                 |   |   |                                 | -      |   |                      |   | 18,157  |   |   |   | -      |   |   |   | 18,157 |   |   |   | - |   |   |   | 18,157 |   |
|                                               |             |            |       |   |                       |   |                    |             |   |         |              |   |   |                                 |   |   |                      |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Transfer to statutory reserve                      |             |            | -          |   |                       |   | -                       |             |   |         | -                 |   |   |                                 | 2,414  |   |                      |   | (2,414  | )      |   |   | -      |   |   |   | - |   |   |   | - |   |   |   |   |   |
|                                               |             |            |       |   |                       |   |                    |             |   |         |              |   |   |                                 |   |   |                      |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment            |             |            | -          |   |                       |   | -                       |             |   |         | -                 |   |   |                                 | -      |   |                      |   | -       |   |   |   | (87    | )      |   |   | (87 | ) |   |   | - |   |   |   | (87 | ) |
|                                               |             |            |       |   |                       |   |                    |             |   |         |              |   |   |                                 |   |   |                      |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance as of December 31, 2008                    |             |            | 13,062,500 |   |                       |   | 13,323                  |             |   |         | 311,907           |   |   |                                 | 29,338 |   |                      |   | 174,970 |   |   |   | 1,061  |   |   |   | 530,599 |   |   |   | - |   |   |   | 530,599 |   |
|                                               |             |            |       |   |                       |   |                    |             |   |         |              |   |   |                                 |   |   |                      |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                  |             |            | -          |   |                       |   | -                       |             |   |         | -                 |   |   |                                 | -      |   |                      |   | (18,963 | )      |   |   | -      |   |   |   | (18,963 | ) |   |   | 3 |   |   |   | (18,960 | ) |
|                                               |             |            |       |   |                       |   |                    |             |   |         |              |   |   |                                 |   |   |                      |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital contribution from non-controlling interest |             |            | -          |   |                       |   | -                       |             |   |         | -                 |   |   |                                 | -      |   |                      |   | -       |   |   |   | -      |   |   |   | - |   |   |   | 273 |   |   |   | 273 |   |
|                                               |             |            |       |   |                       |   |                    |             |   |         |              |   |   |                                 |   |   |                      |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment            |             |            | -          |   |                       |   | -                       |             |   |         | -                 |   |   |                                 | -      |   |                      |   | -       |   |   |   | (68    | )      |   |   | (68 | ) |   |   | - |   |   |   | (68 | ) |
|                                               |             |            |       |   |                       |   |                    |             |   |         |              |   |   |                                 |   |   |                      |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance as of Decmber 31, 2009                     |             |            | 13,062,500 |   |                       |   | 13,323                  |             |   |         | 311,907           |   |   |                                 | 29,338 |   |                      |   | 156,006 |   |   |   | 993    |   |   |   | 511,567 |   |   |   | 276 |   |   |   | 511,843 |   |
|                                               |             |            |       |   |                       |   |                    |             |   |         |              |   |   |                                 |   |   |                      |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                  |             |            | -          |   |                       |   | -                       |             |   |         | -                 |   |   |                                 | -      |   |                      |   | 40,783  |   |   |   | -      |   |   |   | 40,783 |   |   |   | (1,088 | ) |   |   | 39,695 |   |
|                                               |             |            |       |   |                       |   |                    |             |   |         |              |   |   |                                 |   |   |                      |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Transfer to statutory reserve                      |             |            | -          |   |                       |   | -                       |             |   |         | -                 |   |   |                                 | 5,857  |   |                      |   | (5,857  | )      |   |   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                               |             |            |       |   |                       |   |                    |             |   |         |              |   |   |                                 |   |   |                      |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment            |             |            | -          |   |                       |   | -                       |             |   |         | -                 |   |   |                                 | -      |   |                      |   | -       |   |   |   | 193    |   |   |   | 193 |   |   |   | 18 |   |   |   | 211 |   |
|                                               |             |            |       |   |                       |   |                    |             |   |         |              |   |   |                                 |   |   |                      |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance as of Decmber 31, 2010                     |             |            | 13,062,500 |   |                       |   | 13,323                  |             |   |         | 311,907           |   |   |                                 | 35,195 |   |                      |   | 190,933 |   |   |   | 1,186  |   |   |   | 552,544 |   |   |   | (794 | ) |   |   | 551,750 |   |
| Balance as of December 31, 2010  US$     |             |            | 13,062,500 |   |                       |   | 2,015                   |             |   |         | 47,174            |   |   |                                 | 5,323  |   |                      |   | 28,878  |   |   |   | 179    |   |   |   | 83,569 |   |   |   | (120 | ) |   |   | 83,449 |   |

----

|                                                                                                                                   |   | 2010   |         |   | 2009   |   |         | 2008   |   |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------|--------|--------|--------|--------------|--------|--------|
|                                                                                                                                   |   | RMB    |         |   | US$    |   |         | RMB    |   |   | RMB |   |
| Cash flow from operating activities                                                                                                    |   |   |         |   |   |   |         |   |   |   |   |   |
| Net income including non-controlling interest                                                                                          |   |   | 39,695       |   |   |   | 6,004        |   |   |   | (18,960 | ) |   |   | 18,157 |   |
| Adjustments to reconcile net income to net cash                                                                                        |   |   |         |   |   |   | -            |   |   |   |   |   |   |   |   |   |
| (used in)/provided by operating activities                                                                                             |   |   |         |   |   |   | -            |   |   |   |   |   |   |   |   |   |
| - Depreciation of property, plant and equipment                                                                                        |   |   | 36,731       |   |   |   | 5,555        |   |   |   | 35,464 |   |   |   | 25,168 |   |
| - Amortization of intangible assets                                                                                                    |   |   | 454          |   |   |   | 69           |   |   |   | 889 |   |   |   | 490 |   |
| - Deferred income taxes                                                                                                                |   |   | 5,231        |   |   |   | 791          |   |   |   | (4,064 | ) |   |   | (1,748 | ) |
| - Bad debt expense/(recovery)                                                                                                          |   |   | (266         | )      |   |   | (40          | )      |   |   | 697 |   |   |   | 4,818 |   |
| - Inventory provision                                                                                                                  |   |   | -            |   |   |   | -            |   |   |   | 4,242 |   |   |   | - |   |
| Changes in operating assets and liabilities                                                                                            |   |   |         |   |   |   |         |   |   |   |   |   |   |   |   |   |
| - Accounts receivable                                                                                                                  |   |   | 3,404        |   |   |   | 515          |   |   |   | 11,609 |   |   |   | 18,186 |   |
| - Inventories                                                                                                                          |   |   | (7,538       | )      |   |   | (1,140       | )      |   |   | (18,693 | ) |   |   | 11,080 |   |
| - Advance to suppliers                                                                                                                 |   |   | (7,018       | )      |   |   | (1,061       | )      |   |   | 2,890 |   |   |   | 2,384 |   |
| - Prepaid expenses and other current assets                                                                                            |   |   | 523          |   |   |   | 79           |   |   |   | (4,929 | ) |   |   | 89 |   |
| - Accounts payable                                                                                                                     |   |   | (11,581      | )      |   |   | (1,752       | )      |   |   | (4,475 | ) |   |   | 3,691 |   |
| - Accrued expenses and other payables                                                                                                  |   |   | 8,341        |   |   |   | 1,262        |   |   |   | 1,902 |   |   |   | (284 | ) |
| - Advance from customers                                                                                                               |   |   | 24,683       |   |   |   | 3,733        |   |   |   | 3,827 |   |   |   | (2,176 | ) |
| - Tax payable                                                                                                                          |   |   | 5,917        |   |   |   | 895          |   |   |   | (2,411 | ) |   |   | 172 |   |
|                                                                                                                                   |   |   |         |   |   |   |         |   |   |   |   |   |   |   |   |   |
| Net cash provided by operating activities                                                                                              |   |   | 98,575       |   |   |   | 14,909       |   |   |   | 7,988 |   |   |   | 80,027 |   |
|                                                                                                                                   |   |   |         |   |   |   |         |   |   |   |   |   |   |   |   |   |
| Cash flow from investing activities                                                                                                    |   |   |         |   |   |   |         |   |   |   |   |   |   |   |   |   |
| Purchases of property, plant and equipment                                                                                             |   |   | (2,951       | )      |   |   | (446         | )      |   |   | (87,758 | ) |   |   | (56,093 | ) |
| Restricted cash related to trade finance                                                                                               |   |   | 11,217       |   |   |   | 1,697        |   |   |   | (2,130 | ) |   |   | 54,498 |   |
| Advanced to suppliers - non current                                                                                                    |   |   | (420         | )      |   |   | (64          | )      |   |   | 1,941 |   |   |   | - |   |
| Amount decrease in construction in progress                                                                                            |   |   | 39,926       |   |   |   | 6,039        |   |   |   | 82,290 |   |   |   | (54,155 | ) |
| Amount decrease in deposit                                                                                                             |   |   | 4,240        |   |   |   | 641          |   |   |   | - |   |   |   | (21,000 | ) |
|                                                                                                                                   |   |   |         |   |   |   |         |   |   |   |   |   |   |   |   |   |
| Net cash provided by (used in) investing activities                                                                                    |   |   | 52,012       |   |   |   | 7,867        |   |   |   | (5,657 | ) |   |   | (76,750 | ) |
|                                                                                                                                   |   |   |         |   |   |   |         |   |   |   |   |   |   |   |   |   |
| Cash flow from financing activities                                                                                                    |   |   |         |   |   |   |         |   |   |   |   |   |   |   |   |   |
| Principal payments of short-term bank loans                                                                                            |   |   | (11,179      | )      |   |   | (1,691       | )      |   |   | (11,585 | ) |   |   | (23,262 | ) |
| Proceeds from short-term bank loans                                                                                                    |   |   | 5,000        |   |   |   | 756          |   |   |   | 20,000 |   |   |   | 5,000 |   |
|                                                                                                                                   |   |   |         |   |   |   |         |   |   |   |   |   |   |   |   |   |
| Net cash provided by (used in) financing activities                                                                                    |   |   | (6,179       | )      |   |   | (935         | )      |   |   | 8,415 |   |   |   | (18,262 | ) |
|                                                                                                                                   |   |   |         |   |   |   |         |   |   |   |   |   |   |   |   |   |
| Effect of foreign exchange rate changes                                                                                                |   |   | 16           |   |   |   | 2            |   |   |   | 236 |   |   |   | (104 | ) |
|                                                                                                                                   |   |   |         |   |   |   |         |   |   |   |   |   |   |   |   |   |
| Net increase /(decrease) in cash and cash equivalent                                                                                   |   |   | 144,424      |   |   |   | 21,843       |   |   |   | 10,982 |   |   |   | (15,086 | ) |
|                                                                                                                                   |   |   |         |   |   |   |         |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                                                                              |   |   |         |   |   |   |         |   |   |   |   |   |   |   |   |   |
| At beginning of the year                                                                                                               |   |   | 26,804       |   |   |   | 4,054        |   |   |   | 15,823 |   |   |   | 30,909 |   |
| At end of the year                                                                                                                     |   |   | 171,227      |   |   |   | 25,897       |   |   |   | 26,804 |   |   |   | 15,823 |   |
| SUPPLEMENTARY DISCLOSURE:                                                                                                              |   |   |         |   |   |   |         |   |   |   |   |   |   |   |   |   |
| Interest paid                                                                                                                          |   |   | 8,846        |   |   |   | 1,338        |   |   |   | 8,399 |   |   |   | 11,705 |   |
| Income tax paid                                                                                                                        |   |   | 3,658        |   |   |   | 553          |   |   |   | - |   |   |   | 2,966 |   |
| SUPPLEMENTARY SCHEDULE OF NONCASH INVESTING AND FINANCIAL ACTIVITIES:                                                                  |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| During the years ended December 31, 2010, 2009 and 2008, the Company acquired equipment by incurring accounts payable inthe amount of: |   |   | -            |   |   |   | -            |   |   |   | 7,071 |   |   |   | - |   |

----

----

|                       |   | Years         |
|----------------------------|--------|---------------|
| Buildings and improvements |   | 25 – 30 |
| Plant and equipment        |   | 10 – 15 |
| Computer equipment         |   | 5             |
| Furniture and fixtures     |   | 5             |
| Motor vehicles             |   | 5             |

----

----

| Fair value of shares on measurement date |   | US$ 8.28 per share |   |
|------------------------------------------|--------|--------------------|--------|
| Expected volatility                      |   |               | 57.26  | % |
| Expected dividends                       |   |               | 0.00   | % |
| Expected term (in years)                 |   |               | 5      |   |
| Risk-free rate                           |   |               | 4.56   | % |

----

----

----

|                                  |   | 12-31-2010 |   |   | 12-31-2009 |   |
|---------------------------------------|--------|------------|--------|--------|------------|--------|
|                                  |   | RMB        |   |   | US$        |   |   | RMB |   |
| Accounts receivable                   |   |       | 7,097  |   |       |   | 1,073 |   |   |   | 22,289 |   |
| Less: Allowance for doubtful accounts |   |       | (2,140 | )      |       |   | (324 | ) |   |   | (2, 259 | ) |
|                                  |   |       | 4,957  |   |       |   | 750 |   |   |   | 20,030 |   |
| Bills receivable                      |   |       | 20,525 |   |       |   | 3,104 |   |   |   | 8,755 |   |
|                                  |   |       |   |   |       |   |   |   |   |   |   |   |
|                                  |   |       | 25,482 |   |       |   | 3,854 |   |   |   | 28,785 |   |

|                         |   | 12-31-2010 |   |   | 2009   |   |   | 2008   |   |
|------------------------------|--------|------------|--------|--------|--------|--------|--------|--------|--------|
|                         |   | RMB        |   |   | US$    |   |   | RMB    |   |   | RMB |   |
| Balance at beginning of year |   |       | 2,259  |   |   |   | 342    |   |   |   | 4,074 |   |   |   | 2,644 |   |
| Bad debt (recovery) expense  |   |       | (119   | )      |   |   | (18    | )      |   |   | (1,713 | ) |   |   | 1,430 |   |
| Write-offs                   |   |       | -      |   |   |   | -      |   |   |   | (102 | ) |   |   | - |   |
|                         |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at end of year       |   |       | 2,140  |   |   |   | 324    |   |   |   | 2,259 |   |   |   | 4,074 |   |

|                        |   | 12-31-2010 |   |   | 12-31-2009 |   |
|-----------------------------|--------|------------|--------|--------|------------|--------|
|                        |   | RMB        |   |   | US$        |   |   | RMB |   |
| Raw materials               |   |       | 25,254 |   |       |   | 3,820 |   |   |   | 28,756 |   |
| Work-in-progress            |   |       | 1,419  |   |       |   | 215 |   |   |   | 2,274 |   |
| Finished goods              |   |       | 27,634 |   |       |   | 4,179 |   |   |   | 16,752 |   |
| Consumables and spare parts |   |       | 849    |   |       |   | 128 |   |   |   | 633 |   |
| Allowance for obsolescence  |   |       | (2,578 | )      |       |   | (390 | ) |   |   | (3,377 | ) |
|                        |   |       |   |   |       |   |   |   |   |   |   |   |
|                        |   |       | 52,577 |   |       |   | 7,952 |   |   |   | 45,039 |   |

----

|                               |   | 12-31-2010 |   |   | 12-31-2009 |   |
|------------------------------------|--------|------------|--------|--------|------------|--------|
|                               |   | RMB        |   |   | US$        |   |   | RMB |   |
| Current:                           |   |       |   |   |       |   |   |   |   |
| Purchase deposits of raw materials |   |       | 10,974 |   |       |   | 1,662 |   |   |   | 3,956 |   |
| Prepayments                        |   |       | 477    |   |       |   | 72 |   |   |   | 741 |   |
| Other receivables                  |   |       | 63     |   |       |   | 10 |   |   |   | 216 |   |
|                               |   |       | 11,514 |   |       |   | 1,741 |   |   |   | 4,913 |   |
| Non-current:                       |   |       |   |   |       |   |   |   |   |   |   |   |
| Purchase deposits of equipment     |   |       | 2,787  |   |       |   | 422 |   |   |   | 2,367 |   |

|                           |   | 12-31-2010 |     |   | 12-31-2009 |   |
|--------------------------------|--------|------------|----------|--------|------------|--------|
|                           |   | RMB        |     |   | US$        |   |   | RMB |   |
| Buildings                      |   |       | 44,398   |   |       |   | 6,715 |   |   |   | 33,549 |   |
| Plant and equipment            |   |       | 417,696  |   |       |   | 63,174 |   |   |   | 425,864 |   |
| Computer equipment             |   |       | 1,602    |   |       |   | 242 |   |   |   | 1,424 |   |
| Furniture and fixtures         |   |       | 6,958    |   |       |   | 1,052 |   |   |   | 5,929 |   |
| Motor vehicles                 |   |       | 1,905    |   |       |   | 288 |   |   |   | 1,739 |   |
|                           |   |       | 472,561  |   |       |   | 71,472 |   |   |   | 468,505 |   |
| Less: accumulated depreciation |   |       | (187,670 | )      |       |   | (28,384 | ) |   |   | (149,905 | ) |
|                           |   |       | 284,891  |   |       |   | 43,088 |   |   |   | 318,600 |   |

|                       |   | 12-31-2010 |   |   | 12-31-2009 |   |
|----------------------------|--------|------------|--------|--------|------------|--------|
|                       |   | RMB        |   |   | US$        |   |   | RMB |   |
| Land use rights prepayment |   |       | 21,024 |   |       |   | 3,180 |   |   |   | 21,548 |   |

----

|                                                     |   |   |   |   | 12-31-2010 |   |    | 12-31-2009 |   |
|----------------------------------------------------------|--------|--------|--------|--------|------------|--------|---------|------------|--------|
| Lender                                                   |   |   |   |   | RMB        |   |    | US$        |   |   | RMB |   |
| SHORT-TERM LOANS                                         |   |   |   |   |       |   |    |       |   |   |   |   |
| Bank of Communications Co., Ltd.                         |   |   |   |   |       |   |    |       |   |   |   |   |
| - June 9, 2009 to June 8, 2010                           |   |   | 5.84   | %      |       |   |    |       |   |   |   |   | 70,000 |   |
| - June 9, 2009 to June 8, 2010                           |   |   | 5.84   | %      |       |   |    |       |   |   |   |   | 70,000 |   |
| - June 8, 2010 to June 7, 2011                           |   |   | 6.116  | %      |       |   | 67,000  |       |   |   | 10,133 |   |   |   |   |   |
| - June 7, 2010 to June 6, 2011                           |   |   | 6.116  | %      |       |   | 70,000  |       |   |   | 10,587 |   |   |   |   |   |
| Bank of Weifang                                          |   |   |   |   |       |   |    |       |   |   |   |   |   |   |   |   |
| - January 13, 2009 to January 12, 2010                   |   |   | 0.00   | %      |       |   |    |       |   |   |   |   |   |   | 10,000 |   |
| - December 2, 2008 to December 2, 2011                   |   |   | 0.00   | %      |       |   | 5,000   |       |   |   | 756 |   |   |   | 5,000 |   |
| Bank of China                                            |   |   |   |   |       |   |    |       |   |   |   |   |   |   |   |   |
| - March 13, 2008 to March 13, 2009                       |   |   | 5.45   | %      |       |   |    |       |   |   |   |   |   |   | (80 | ) |
| - June 4, 2009 to June 4, 2010                           |   |   | 1.38   | %      |       |   |    |       |   |   |   |   |   |   | 3,259 |   |
|                                                     |   |   |   |   |       |   |    |       |   |   |   |   |   |   |   |   |
| LONG-TERM LOANS                                          |   |   |   |   |       |   |    |       |   |   |   |   |   |   |   |   |
| Bank of Weifang                                          |   |   |   |   |       |   |    |       |   |   |   |   |   |   |   |   |
| - January 16, 2009 to January 12, 2012                   |   |   | 0.00   | %      |       |   | 10,000  |       |   |   | 1,512 |   |   |   | 10,000 |   |
| - January 13, 2010 to January 12, 2012                   |   |   | 0.00   | %      |       |   | 10,000  |       |   |   | 1,512 |   |   |   |   |   |
| Weifang Dongfang State-owned Assets Management Co., Ltd. |   |   |   |   |       |   |    |       |   |   |   |   |   |   |   |   |
| - October 19, 2009 to October 18, 2017                   |   |   | 5.52   | %      |       |   | 10,000  |       |   |   | 1,512 |   |   |   | 10,000 |   |
|                                                     |   |   |   |   |       |   | 172,000 |       |   |   | 26,014 |   |   |   | 178,179 |   |

----

|                                       |   | 12-31-2010 |    |   | 12-31-2009 |   |    | 12-31-2008 |   |
|--------------------------------------------|--------|------------|---------|--------|------------|--------|---------|------------|--------|
|                                       |   | RMB        |    |   | US$        |   |    | RMB        |   |   | RMB |   |
| Secured by:                                |   |       |    |   |       |   |    |       |   |   |   |   |
| - property, plant and equipment            |   |       | 135,120 |   |       |   | 20,436  |       |   |   | 138,120 |   |   |   | 107,580 |   |
| - lease prepayments                        |   |       | 26,880  |   |       |   | 4,065   |       |   |   | 26,880 |   |   |   | 60,000 |   |
| - bills receivable                         |   |       | — |   |       |   | — |       |   |   | — |   |   |   | — |   |
| Guaranteed by related parties (Note 22(a)) |   |       | 10,000  |   |       |   | 1,512   |       |   |   | 10,000 |   |   |   | — |   |
| Restricted cash                            |   |       | — |   |       |   | — |       |   |   | 3,259 |   |   |   | — |   |
|                                       |   |       | 172,000 |   |       |   | 26,014  |       |   |   | 178,259 |   |   |   | 167,580 |   |

----

|         |   | RMB    |   |   | US$    |   |
|--------------|--------|--------|--------|--------|--------|--------|
| 1 year after |   |   | 20,000 |   |   |   | 3,025 |   |
| 3 year after |   |   | 10,000 |   |   |   | 1,512 |   |

|                                |   | 12-31-2010 |   |   | 12-31-2009 |   |
|-------------------------------------|--------|------------|--------|--------|------------|--------|
|                                |   | RMB        |   |   | US$        |   |   | RMB |   |
| Payables to contractors             |   |       | -      |   |       |   | - |   |   |   | - |   |
| Other payables                      |   |       | 13,570 |   |       |   | 2,052 |   |   |   | 5,474 |   |
| VAT payable and other taxes payable |   |       | 7,422  |   |       |   | 1,123 |   |   |   | 1,507 |   |
| Audit fee                           |   |       | -      |   |       |   | - |   |   |   | 546 |   |
|                                |   |       | 20,993 |   |       |   | 3,175 |   |   |   | 6,981 |   |

|                                                                  |   | 12-31-2010 |    |   | 12-31-2009 |   |   | 12-31-2008 |   |
|-----------------------------------------------------------------------|--------|------------|---------|--------|------------|--------|--------|------------|--------|
|                                                                  |   | RMB        |    |   | US$        |   |   | RMB        |   |   | RMB |   |
| Sales in China                                                        |   |       | 397,781 |   |       |   | 60,162 |       |   |   | 285,120 |   |   |   | 388,823 |   |
| Sales in other countries (principally Europe, Asia and North America) |   |       | 103,677 |   |       |   | 15,681 |       |   |   | 35,611 |   |   |   | 58,432 |   |
|                                                                  |   |       |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
|                                                                  |   |       | 501,458 |   |       |   | 75,843 |       |   |   | 320,731 |   |   |   | 447,255 |   |

|                             |   | 12-31-2010 |    |   |   |   |   | 12-31-2009           |   |   |   |   |   | 12-31-2008           |    |   |   |   |
|----------------------------------|--------|------------|---------|--------|--------|--------|--------|----------------------|--------|--------|--------|--------|--------|----------------------|---------|--------|--------|--------|
|                             |   | RMB        |    |   | US$    |   |   | % of Total |   |   | RMB    |   |   | % of Total |    |   | RMB    |   |   | % of Total |   |
| Printing film                    |   |       | 76,720  |   |   |   | 11,604 |                 |   |   | 15.3   | %      |   |                 | 35,231  |   |   |   | 11.0 | % |   |   | 56,607 |   |   |   | 12.7 | % |
| Stamping film                    |   |       | 282,033 |   |   |   | 42,656 |                 |   |   | 56.2   | %      |   |                 | 174,356 |   |   |   | 54.4 | % |   |   | 139,571 |   |   |   | 31.2 | % |
| Metallization film               |   |       | 28,108  |   |   |   | 4,251  |                 |   |   | 5.6    | %      |   |                 | 35,138  |   |   |   | 11.0 | % |   |   | 45,148 |   |   |   | 10.1 | % |
| Specialty film                   |   |       | 87,956  |   |   |   | 13,303 |                 |   |   | 17.5   | %      |   |                 | 34,004  |   |   |   | 10.6 | % |   |   | 107,404 |   |   |   | 24.0 | % |
| Base film for other applications |   |       | 26,641  |   |   |   | 4,029  |                 |   |   | 5.3    | %      |   |                 | 42,002  |   |   |   | 13.1 | % |   |   | 98,525 |   |   |   | 22.0 | % |
|                             |   |       | 501,458 |   |   |   | 75,843 |                 |   |   | 100.0  | %      |   |                 | 320,731 |   |   |   | 100.0 | % |   |   | 447,255 |   |   |   | 100.0 | % |

|                    |   | 12-31-2010 |   |   | 12-31-2009 |   |   | 12-31-2008 |   |
|-------------------------|--------|------------|--------|--------|------------|--------|--------|------------|--------|
|                    |   | RMB        |   |   | US$        |   |   | RMB        |   |   | RMB |   |
| Cost of goods sold      |   |       | 33,154 |   |       |   | 5,014  |       |   |   | 32,139 |   |   |   | 25,362 |   |
| Distribution expenses   |   |       | 51     |   |       |   | 8      |       |   |   | 55 |   |   |   | 42 |   |
| Administrative expenses |   |       | 3,526  |   |       |   | 533    |       |   |   | 2,976 |   |   |   | 614 |   |
|                    |   |       |   |   |       |   | -      |       |   |   |   |   |   |   |   |   |
|                    |   |       | 36,731 |   |       |   | 5,555  |       |   |   | 35,170 |   |   |   | 26,018 |   |

----

|                             |   | 12-31-2010 |   |   | 12-31-2009 |   |   | 12-31-2008 |   |
|----------------------------------|--------|------------|--------|--------|------------|--------|--------|------------|--------|
|                             |   | RMB        |   |   | US$        |   |   | RMB        |   |   | RMB |   |
| Interest cost capitalized        |   |       | -      |   |       |   | -      |       |   |   | 1,739 |   |   |   | 7,710 |   |
| Interest cost charged to expense |   |       | 8,846  |   |       |   | 1,338  |       |   |   | 6,540 |   |   |   | 3,995 |   |
|                             |   |       | 8,846  |   |       |   | 1,338  |       |   |   | 8,279 |   |   |   | 11,705 |   |

|               |   | 12-31-2010 |   |   | 12-31-2009 |   |   | 12-31-2008 |   |
|--------------------|--------|------------|--------|--------|------------|--------|--------|------------|--------|
|               |   | RMB        |   |   | US$        |   |   | RMB        |   |   | RMB |   |
| Net income         |   |       | (5,075 | )      |       |   | (768   | )          |   |   | - |   |   |   | (2,966 | ) |
| Earnings per share |   |       |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
| - Basic            |   |       | (0.39  | )      |       |   | (0.06  | )          |   |   | - |   |   |   | (0.23 | ) |
| - Diluted          |   |       | (0.39  | )      |       |   | (0.06  | )          |   |   | - |   |   |   | (0.23 | ) |

|                   |   | 12-31-2010 |    |   | 12-31-2009 |   |   | 12-31-2008 |   |
|------------------------|--------|------------|---------|--------|------------|--------|--------|------------|--------|
|                   |   | RMB        |    |   | US$        |   |   | RMB        |   |   | RMB |   |
| Cayman Islands         |   |       | (14,423 | )      |       |   | (2,181 | )          |   |   | (4,989 | ) |   |   | (11,419 | ) |
| British Virgin Islands |   |       | (2      | )      |       |   | (0.3   | )          |   |   | (1 | ) |   |   | (1 | ) |
| PRC                    |   |       | 67,900  |   |       |   | 10,269 |       |   |   | (18,042 | ) |   |   | 32,539 |   |
| U.S.A                  |   |       | (2,721  | )      |       |   | (412   | )          |   |   | 8 |   |   |   | - |   |
|                   |   |       | 50,754  |   |       |   | 7,676  |       |   |   | (23,024 | ) |   |   | 21,119 |   |

----

|                                        |   | Current |    |   | Deferred |   |   | Total  |   |
|---------------------------------------------|--------|---------|---------|--------|----------|--------|--------|--------|--------|
| PRC income tax                    |   | RMB     |    |   | RMB      |   |   | RMB    |   |
| Year ended December 31, 2008                |   |    | (4,715  | )      |     |   | 1,748  |   |   |   | (2,966 | ) |
|                                        |   |    |    |   |     |   |   |   |   |   |   |   |
| Year ended December 31, 2009                |   |    | – |   |     |   | 4,064  |   |   |   | 4,064 |   |
|                                        |   |    |    |   |     |   |   |   |   |   |   |   |
| Year ended December 31, 2010                |   |    | (8,427  | )      |     |   | (2,632 | )      |   |   | (11,059 | ) |
| Year ended December 31, 2010  US$ |   |    | (1,275  | )      |     |   | (398   | )      |   |   | (1,673 | ) |

|                                                  |   | 12-31-2010 |    |   | 12-31-2009 |   |   | 12-31-2008 |   |
|-------------------------------------------------------|--------|------------|---------|--------|------------|--------|--------|------------|--------|
|                                                  |   | RMB        |    |   | US$        |   |   | RMB        |   |   | RMB |   |
| Income (loss) before income taxes                     |   |       | 50,754  |   |       |   | 7,676  |       |   |   | (23,024 | ) |   |   | 21,123 |   |
|                                                  |   |       |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Computed “expected” tax expense (benefit) |   |       | (13,275 | )      |       |   | (2,008 | )          |   |   | (3,453 | ) |   |   | (5,280 | ) |
| Non-deductible expenses                               |   |       | 4,425   |   |       |   | 669    |       |   |   | 1,693 |   |   |   | 1,022 |   |
| Non-taxable income                                    |   |       | (1965   | )      |       |   | (297   | )          |   |   | (1,324 | ) |   |   | (3,030 | ) |
| Tax holiday                                           |   |       | 8,850   |   |       |   | 1,339  |       |   |   | 5,388 |   |   |   | 3,385 |   |
| Tax rate differential of other tax jurisdictions      |   |       | (9,094  | )      |       |   | (1,375 | )          |   |   | 1,760 |   |   |   | 937 |   |
|                                                  |   |       |    |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Actual income tax (expense) benefit                   |   |       | (11,059 | )      |       |   | (1,673 | )          |   |   | 4,064 |   |   |   | (2,966 | ) |

|                                                                          |   | 12-31-2010 |   |   | 12-31-2009 |   |
|-------------------------------------------------------------------------------|--------|------------|--------|--------|------------|--------|
|                                                                          |   | RMB        |   |   | US$        |   |   | RMB |   |
| Current                                                                       |   |       |   |   |       |   |   |   |   |
| Accounts receivable                                                           |   |       | 321    |   |       |   | 49 |   |   |   | (353 | ) |
| Other receivables                                                             |   |       | 636    |   |       |   | 96 |   |   |   | 914 |   |
| Inventory impairment                                                          |   |       | 387    |   |       |   | 58 |   |   |   | 636 |   |
|                                                                          |   |       | 1,344  |   |       |   | 203 |   |   |   | 1,198 |   |
|                                                                          |   |       |   |   |       |   |   |   |   |   |   |   |
| Non-current                                                                   |   |       |   |   |       |   |   |   |   |   |   |   |
| Property, plant and equipment, principally due to differences in depreciation |   |       | 1,763  |   |       |   | 267 |   |   |   | 2,134 |   |
| Construction in progress, principally due to capitalized interest             |   |       | (1,417 | )      |       |   | (214 | ) |   |   | 161 |   |
| Lease prepayments, principally due to differences in charges                  |   |       | (404   | )      |       |   | (61 | ) |   |   | (431 | ) |
| Net loss carryforward                                                         |   |       | -      |   |       |   | - |   |   |   | 3,454 |   |
|                                                                          |   |       | (58    | )      |       |   | (9 | ) |   |   | 5,318 |   |
|                                                                          |   |       |   |   |       |   |   |   |   |   |   |   |
| Net deferred income tax assets                                                |   |       | 1,285  |   |       |   | 194 |   |   |   | 6,516 |   |

----

| Name of party                                                            |   | Relationship                                                                                                                                                                    |
|--------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Shandong Baorui Investment Co., Ltd (“Shandong Baorui”)      |   | Former shareholder (10%) of Shandong Fuwei. Shandong Baorui is 22.1% owned by the Group Founders.                                                                               |
|                                                                     |   |                                                                                                                                                                            |
| Shenghong Group Co., Ltd (“Shenghong Group”)                 |   | Former shareholder (90%) of Shandong Fuwei.                                                                                                                                     |
|                                                                     |   |                                                                                                                                                                            |
| Shandong Neo-Luck Plastic Co., Ltd (“Shandong Neo-Luck”)     |   | The Group Founders’ former employer previously engaged in the business of BOPET film production.                                                                          |
|                                                                     |   |                                                                                                                                                                            |
| Weifang Neo-Luck (Group) Co., Ltd (“Weifang Neo-Luck Group”) |   | Major shareholder (59%) of Shandong Neo-Luck. One of the directors of the Company was the general manager of Weifang Neo-Luck Group prior to joining the Company in April 2005. |
|                                                                     |   |                                                                                                                                                                            |
| Easebright Investments Limited (“Easebright Investments”)    |   | Shareholder of the Company(12.5%)                                                                                                                                 |
|                                                                     |   |                                                                                                                                                                            |
| Apex Glory Holdings Limited (“Apex Glory Holdings”)          |   | Shareholder of the Company(52.9%)                                                                                                                                 |
|                                                                     |   |                                                                                                                                                                            |
| Everise Investment Management Co., Ltd.                                  |   | Owned by the Management of the Company                                                                                                                                          |

----

|                                           |   |                    |   | Percentage of total purchases (%) |   |
|------------------------------------------------|--------|-------------------------|--------|-------------------------------------------------------|--------|
|                                           |   | Supply                  |   | 2010                                                  |   |   | 2009 |   |   | 2008 |   |
| Sinopec Yizhang Chemical Fibre Company Limited |   | PET resin and Additives |   |                                                  | 42.4   |   |   |   | 45.8 |   |   |   | 44.8 |   |
| Jiangyin Huaxin Compound Co., Ltd.             |   | PET resin               |   |                                                  | 11.6   |   |   |   | 12.5 |   |   |   | 9.7 |   |
| Mahongany Joy Investment Ltd                   |   | PET resin               |   |                                                  | 11.1   |   |   |   | - |   |   |   | - |   |

|   |   | RMB    |   |
|--------|--------|--------|--------|
| 2010   |   |   | 401    |   |

----

----

----

|                                                                          |   | 2010   |       |   | 2009   |   |       | 2008   |   |
|-------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                                                                          |   | RMB    |       |   | US$    |   |       | RMB    |   |   | RMB |   |
| Net income (loss) available to ordinary shareholders                          |   |   | 40,783     |   |   |   | 6,168      |   |   |   | (18,963 | ) |   |   | 18,157 |   |
| Denominator for basic net income (loss) available to ordinary shareholders:   |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |
| Weighted average number of ordinary shares outstanding                        |   |   | 13,062,500 |   |   |   | 13,062,500 |   |   |   | 13,062,500 |   |   |   | 13,062,500 |   |
|                                                                          |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |
| Basic earnings (loss) per share                                               |   |   | 3.12       |   |   |   | 0.47       |   |   |   | (1.45 | ) |   |   | 1.39 |   |
|                                                                          |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |
| Net income (loss) available to ordinary shareholders                          |   |   | 40,783     |   |   |   | 6,168      |   |   |   | (18,963 | ) |   |   | 18,157 |   |
| Denominator for diluted net income (loss) available to ordinary shareholders: |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |
| Weighted average number of ordinary shares outstanding                        |   |   | 13,062,500 |   |   |   | 13,062,500 |   |   |   | 13,062,500 |   |   |   | 13,062,500 |   |
| Weighted average number of share options                                      |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |
|                                                                          |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |
|                                                                          |   |   | 13,062,500 |   |   |   | 13,062,500 |   |   |   | 13,062,500 |   |   |   | 13,062,500 |   |
|                                                                          |   |   |       |   |   |   |       |   |   |   |   |   |   |   |   |   |
| Diluted earnings (loss) per share                                             |   |   | 3.12       |   |   |   | 0.47       |   |   |   | (1.45 | ) |   |   | 1.39 |   |

----

|                                             |   | 2010   |    |   | 2009   |   |
|--------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                             |   | RMB    |    |   | US$    |   |   | RMB |   |
|                                             |   |   |    |   |   |   |   |   |   |
| Cash and cash equivalents                        |   |   | 92      |   |   |   | 14 |   |   |   | 28 |   |
| Other current assets                             |   |   | 282,893 |   |   |   | 42,786 |   |   |   | 293,179 |   |
| Investments in subsidiaries                      |   |   | 395     |   |   |   | 60 |   |   |   | 409 |   |
|                                             |   |   |    |   |   |   |   |   |   |   |   |   |
| Total assets                                     |   |   | 283,380 |   |   |   | 42,860 |   |   |   | 293,617 |   |
|                                             |   |   |    |   |   |   |   |   |   |   |   |   |
| Current liabilities                              |   |   | 49,315  |   |   |   | 7,459 |   |   |   | 34,657 |   |
| Total shareholders’ equity                 |   |   | 234,065 |   |   |   | 35,401 |   |   |   | 258,960 |   |
|                                             |   |   |    |   |   |   |   |   |   |   |   |   |
| Total liabilities and shareholders’ equity |   |   | 283,380 |   |   |   | 42,860 |   |   |   | 293,617 |   |

|                                |   | 2010   |    |   | 2009   |   |   | 2008   |   |
|-------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
|                                |   | RMB    |    |   | US$    |   |   | RMB    |   |   | RMB |   |
|                                |   |   |    |   |   |   |   |   |   |   |   |   |
| Interest expense                    |   |   | (12     | )      |   |   | (2     | )      |   |   | - |   |   |   | (15 | ) |
| General and administrative expenses |   |   | (14,411 | )      |   |   | (2,180 | )      |   |   | (4,974 | ) |   |   | (11,404 | ) |
|                                |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss before equity in undistributed |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings of subsidiaries            |   |   | (14,423 | )      |   |   | (2,181 | )      |   |   | (4,974 | ) |   |   | (11,419 | ) |
| Equity in earnings of subsidiaries  |   |   | 58,478  |   |   |   | 8,844  |   |   |   | (13,989 | ) |   |   | 31,668 |   |
|                                |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                   |   |   | 44,055  |   |   |   | 6,663  |   |   |   | (18,963 | ) |   |   | (20,248 | ) |

----

|                                |   | 2010   |    |   | 2009   |   |   | 2008   |   |
|-------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
|                                |   | RMB    |    |   | US$    |   |   | RMB    |   |   | RMB |   |
| Interest income/ (expenses)         |   |   | (12     | )      |   |   | (2     | )      |   |   | - |   |   |   | (15 | ) |
| General and administrative expenses |   |   | (14,411 | )      |   |   | (2,180 | )      |   |   | (4,974 | ) |   |   | (11,404 | ) |
|                                |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss before equity in undistributed |   |   | -       |   |   |   | -      |   |   |   |   |   |   |   |   |   |
| Earnings of subsidiaries            |   |   | (14,423 | )      |   |   | (2,181 | )      |   |   | (4,974 | ) |   |   | (11,419 | ) |
| Equity in earnings of subsidiaries  |   |   | 58,478  |   |   |   | 8,844  |   |   |   | (13,989 | ) |   |   | 31,668 |   |
|                                |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                          |   |   | 44,055  |   |   |   | 6,663  |   |   |   | (18,963 | ) |   |   | (20,248 | ) |

|                                                                             |   | 2010   |    |   | 2009   |   |
|----------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                                             |   | RMB    |    |   | US$    |   |   | RMB |   |
|                                                                             |   |   |    |   |   |   |   |   |   |
| Cash flow from operating activities                                              |   |   |    |   |   |   |   |   |   |
| Net income (loss)                                                                |   |   | 40,783  |   |   |   | 6,168 |   |   |   | (18,963 | ) |
| Adjustment to reconcile net income (loss) to net cash from operating activities: |   |   |    |   |   |   |   |   |   |   |   |   |
|                                                                             |   |   |    |   |   |   |   |   |   |   |   |   |
| - Equity in earnings of subsidiaries                                             |   |   | (55,206 | )      |   |   | (8,350 | ) |   |   | 13,975 |   |
| - Foreign exchange gain                                                          |   |   | -       |   |   |   | - |   |   |   | - |   |
| Changes in operating assets and liabilities:                                     |   |   |    |   |   |   |   |   |   |   |   |   |
| - Other current assets                                                           |   |   | -       |   |   |   | - |   |   |   | (41 | ) |
| - Other current liabilities                                                      |   |   | 6,139   |   |   |   | 929 |   |   |   | 1,153 |   |
|                                                                             |   |   |    |   |   |   |   |   |   |   |   |   |
| Net cash used in operating activities                                            |   |   | (8,284  | )      |   |   | (1,253 | ) |   |   | (3,876 | ) |
|                                                                             |   |   |    |   |   |   |   |   |   |   |   |   |
| Cash flow from financing activities                                              |   |   |    |   |   |   |   |   |   |   |   |   |
|                                                                             |   |   |    |   |   |   |   |   |   |   |   |   |
| Payments to related parties                                                      |   |   | 8,321   |   |   |   | 1,258 |   |   |   | 4,306 |   |
| Proceeds from related parties                                                    |   |   | (10     | )      |   |   | (2 | ) |   |   | (412 | ) |
|                                                                             |   |   |    |   |   |   |   |   |   |   |   |   |
| Effect of foreign exchange                                                       |   |   | 38      |   |   |   | 6 |   |   |   | 0.1 |   |
|                                                                             |   |   |    |   |   |   |   |   |   |   |   |   |
| Net cash provided by financing activities                                        |   |   | 8,348   |   |   |   | 1,263 |   |   |   | 3,893 |   |
|                                                                             |   |   |    |   |   |   |   |   |   |   |   |   |
| Net increase in cash                                                             |   |   | 64      |   |   |   | 10 |   |   |   | 16 |   |
| Cash and cash equivalents:                                                       |   |   |    |   |   |   |   |   |   |   |   |   |
| At beginning of year                                                             |   |   | 28      |   |   |   | 4 |   |   |   | 12 |   |
| At end of year                                                                   |   |   | 92      |   |   |   | 14 |   |   |   | 28 |   |

----

| QuarterEnded                              |   | March 31, 2010 |   |   | June 30, 2010 |   |   | September 30, 2010 |   |   | December 31, 2010 |   |   | Total  |   |
|-------------------------------------------|--------|--------------------------|--------|--------|-------------------------|--------|--------|------------------------------|--------|--------|-----------------------------|--------|--------|--------|--------|
|                                      |   | RMB                      |   |   | US$                     |   |   | RMB                          |   |   | US$                         |   |   | RMB    |   |   | US$ |   |   | RMB |   |   | US$ |   |   | RMB |   |   | US$ |   |
| Revenue                                   |   |                     | 88,455 |   |                    |   | 12,956 |                         |   |   | 110,319                     |   |   |   | 16,163 |   |   |   | 129,174 |   |   |   | 18,950 |   |   |   | 173,511 |   |   |   | 26,243 |   |   |   | 501,458 |   |   |   | 75,843 |   |
| Gross profit                              |   |                     | 12,767 |   |                    |   | 1,870  |                         |   |   | 19,670                      |   |   |   | 2,882  |   |   |   | 40,515 |   |   |   | 5,944 |   |   |   | 57,601 |   |   |   | 8,712 |   |   |   | 130,553 |   |   |   | 19,745 |   |
| Net income                                |   |                     | 300    |   |                    |   | 44     |                         |   |   | (3                          | )      |   |   | (0.4   | ) |   |   | 15,043 |   |   |   | 2,210 |   |   |   | 25,443 |   |   |   | 3,848 |   |   |   | 40,783 |   |   |   | 6,168 |   |
| Basic and diluted earnings per share |   |                     | 0.02   |   |                    |   | 0.003  |                         |   |   | (0.00                       | )      |   |   | (0.00  | ) |   |   | 1.15 |   |   |   | 0.17 |   |   |   | 1.95 |   |   |   | 0.29 |   |   |   | 3.12 |   |   |   | 0.47 |   |

----