Plastec Technologies Reports 2019 First Half Financial Results; Announces Extension of Securities Repurchase Plan

HONG KONG--()--Plastec Technologies, Ltd. - (OTCBB: PLTYF), (the “Company”), today reported unaudited financial results for the fiscal 2019 six-month period ended June 30, 2019. See financial tables at the end of this release in Hong Kong dollars (HKD). All other amounts in this press release are presented in U.S. dollars (USD) with a conversion rate of US$1.0: HK$7.8.

Recent Highlights – Special Cash Dividend Paid to Shareholders

On June 7, 2019, the Company’s Board of Directors declared a special cash dividend of $2.50 per ordinary share after receiving a further payment of RMB 137,370,000 (or approximately $19,908,696, at the then conversion rate of 6.9 RMB for every $1) under its previously announced Share Transfer Agreement with Shanghai Yongli. The special cash dividend was paid on or about June 28, 2019 to shareholders of record as of June 21, 2019.

Current Balance Sheet Highlights

  • $22.0 million in workingcapital at June 30, 2019, compared to $54.9million at December 31, 2018.
  • Book value per share was $2.87 at June 30, 2019, compared to $5.45 at December 31, 2018.

Update on Securities Repurchase Plan

The Company announced today that its Board of Directors has approved a further extension of its existing securities repurchase plan (as expanded and expiring on September 25, 2019) through September 25, 2020, allowing it to purchase up to $5 million of its securities in both open market and privately negotiated transactions at the discretion of the Company’s management and as market conditions allow; which repurchase plan may be suspended, modified or discontinued without any notice at any time.

Management Comments

Mr. Kin Sun Sze-To, Chairman of the Company, stated, “We are pleased to have been able to return capital to shareholders during the period. We continue to maintain our public listing and evaluate potential investment opportunities in the future.”

Forward Looking Statements

This press release contains “forward-looking statements.” These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Actual results may differ from expectations, estimates and projections and, consequently, you should not rely on these forward looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements.

PLASTEC TECHNOLOGIES, LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited)

(Hong Kong dollars in thousands, except number of shares, per share data and unless otherwise stated)

 

 

 

 

 

For the 6-month
period ended June 30,

 

 

2019

 

2018

 

 

HK$

 

HK$

     

Revenues

 

-

 

 

-

 

 

 

 

 

 

Operating (expenses)/income, net

 

 

 

 

Selling, general and administrative (expenses)/income

 

(18,158

)

 

2,754

 

Other income

 

8,075

 

 

8,240

 

Gain on disposal of subsidiaries

 

-

 

 

6,303

 

Total operating (expenses)/income, net

 

(10,083

)

 

17,297

 

 

 

 

 

 

(Loss)/income from operations

 

(10,083

)

 

17,297

 

 

 

 

 

 

Interest income

 

1,955

 

 

1,205

 

(Loss)/income before income tax expense

 

(8,128

)

 

18,502

 

 

 

 

 

 

Income tax expense

 

(719

)

 

(1,905

)

Net (loss)/ income from continuing operations attributable to the Company’s shareholders

 

(8,847

)

 

16,597

 

 

 

 

 

 

Discontinued operations:

 

 

 

 

Net expenses from discontinued operations

 

-

 

 

(5,885

)

 

 

 

 

 

Net loss from discontinued operations attributable to the Company's shareholders

 

-

 

 

(5,885

 

 

 

 

 

Other comprehensive income

 

 

 

 

Foreign currency translation adjustment

 

-

 

 

6,673

 

Comprehensive (loss)/income attributable to the Company’s shareholders

 

(8,847

)

 

17,385

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

Weighted average number of ordinary shares

   

Continuing operations

 

12,938,128

 

 

12,938,128

 

Discontinued operations

 

12,938,128

 

 

12,938,128

 

 

 

 

 

 

Weighted average number of diluted ordinary shares

   

Continuing operations

 

12,938,128

 

 

12,938,128

 

Discontinued operations

 

12,938,128

 

 

12,938,128

 

 

 

 

 

 

Basic (loss)/income per share attributable to the Company’s shareholders

   

Continuing operations

 

(HK$0.68)

 

HK$1.28

Discontinued operations

 

-

 

 

(HK$0.45)

 

 

 

 

 

Diluted (loss)/income per share attributable to the Company’s shareholders

   

Continuing operations

 

(HK$0.68)

 

HK$1.28

Discontinued operations

 

-

 

 

(HK$0.45)

PLASTEC TECHNOLOGIES, LTD.

CONSOLIDATED BALANCE SHEETS

(Hong Kong dollars in thousands, except number of shares, per share data and unless otherwise stated)

 

 

 

 

(Unaudited)

June 30,

 

(Audited)

December 31,

 

 

 

2019

 

2018

 

 

 

HK$

 

HK$

 
 

ASSETS

 

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

 

 

182,155

 

 

272,820

 

Deposits, prepayment and other receivables

 

 

3,208

 

 

3,339

 

Consideration receivable

 

 

-

 

 

165,506

 

Total current assets

 

 

185,363

 

 

441,665

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

104,544

 

 

107,752

 

Prepaid lease payments, net

 

 

12,820

 

 

13,584

 

Intangible assets

 

 

438

 

 

438

 

Total assets

 

 

303,165

 

 

563,439

 

 
 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

Other payables and accruals

 

 

4,600

 

 

4,452

 

Tax payable

 

 

9,397

 

 

8,678

 

Total current liabilities

 

 

13,997

 

 

13,130

 

 

 

 

 

 

 

Total liabilities

 

 

13,997

 

 

13,130

 

 

 

 

 

 

 

Commitments and contingencies

 

 

-

 

 

-

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

Ordinary shares (US$0.001 par value; 100,000,000 authorized 12,938,128 and 12,938,128 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively)

 

 

101

 

 

101

 

Additional paid-in capital

 

 

26,049

 

 

26,049

 

Accumulated other comprehensive income

 

 

(30

)

 

(30

)

Retained earnings

 

 

263,048

 

 

524,189

 

Total shareholders’ equity

 

 

289,168

 

 

550,309

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

 

303,165

 

 

563,439

 

PLASTEC TECHNOLOGIES, LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(Hong Kong dollars in thousands, except number of shares, per share data and unless otherwise stated)

 

 

For the 6-month

period ended June 30,

 

2019

2018

 

HK$

HK$

Operating activities

 

 

Net (loss)/income

(8,847

)

10,712

 

Less: Net (loss) from discontinued operations

-

 

(5,885

)

Net (loss)/income from continuing operations

(8,847

)

16,597

 

 

 

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

Depreciation and amortization

3,972

 

4,011

 

Gain on disposal of subsidiaries

-

 

(6,303

)

Changes in operating assets and liabilities:

 

 

Deposits, prepayment and other receivables

131

 

(1,023

)

Other payables and accruals

148

 

423

 

Tax payables

719

 

1,905

 

Net cash (used in)/provided by continuing operations

(3,877

)

15,610

 

Net cash provided by discontinued operations

-

 

3,104

 

Net cash (used in)/provided by operating activities

(3,877

)

18,714

 

 

 

 

Investing activities

 

 

Net cash inflow from disposals of subsidiaries (net of cash disposed of, nil for the 6-month period ended Jun 30, 2019 and HK$49,666 for the 6-month period ended Jun 30, 2018)

165,506

 

350,655

 

Net cash provided by continuing operations

165,506

 

350,655

 

Net cash used in discontinued operations

-

 

(101,410

)

Net cash provided by investing activities

165,506

 

249,245

 

 

 

 

Financing activities

 

 

Dividends paid

(252,294

)

(151,376

)

Net cash used in continuing operations

-

 

(151,376

)

Net cash used in discontinued operations

-

 

-

 

Net cash used in financing activities

(252,294

)

(151,376

)

 

 

 

Net (decrease)/increase in cash and cash equivalents

(90,665

)

116,583

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

-

 

6,673

 

Cash and cash equivalents, beginning of period

272,820

 

395,087

 

Cash and cash equivalents, end of period

182,155

 

518,343

 

Less: cash and cash equivalents from discontinued operations

-

 

-

 

Cash and cash equivalents, end of the period from continuing operations

182,155

 

518,343

 

 

 

 

Supplementary disclosures of cash flow information from continuing operations:

 

 

Interest received, net

1,955

 

1,205

 

 

Contacts

Plastec Technologies, Ltd.
HL Ning, Chief Financial Officer
ning@plastec.com.hk

INVESTOR RELATIONS:
The Equity Group Inc.
Adam Prior, Senior Vice President
(212) 836-9606
aprior@equityny.com

In China
Katherine Yao, Senior Associate
+86 10 6587 6435
kyao@equityny.com

Contacts

Plastec Technologies, Ltd.
HL Ning, Chief Financial Officer
ning@plastec.com.hk

INVESTOR RELATIONS:
The Equity Group Inc.
Adam Prior, Senior Vice President
(212) 836-9606
aprior@equityny.com

In China
Katherine Yao, Senior Associate
+86 10 6587 6435
kyao@equityny.com