Plastec Technologies Reports Fiscal 2020 First Half Financial Results; Announces Extension of Securities Repurchase Plan

HONG KONG–(BUSINESS WIRE)–Plastec Technologies, Ltd. (OTCBB: PLTYF) (the �Company”) today reported unaudited financial results for the fiscal 2020 six-month period ended June 30, 2020. 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.

Current Balance Sheet Highlights

• $22.5 million in working capital at June 30, 2020, compared to $22.6 million at December 31, 2019.
• Book value per share was $1.75 at June 30, 2020, compared to $1.76 at December 31, 2019.

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, 2020) through September 25, 2021, 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, “Through the first six months of 2020, we have maintained our public company listing status as we evaluate investment opportunities in the future. We expect to maintain a low expense structure during this process.”

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,
					2020			2019
					HK$			HK$
Revenues					–			–
Operating (expenses)/income, net
Selling, general and administrative expenses					(1,638	)		(11,365	)
Gain on disposal of a subsidiary					29			–
Total operating expenses, net					(1,609	)		(11,365	)
Loss from operations					(1,609	)		(11,365	)
Interest income					979			1,955
Loss before income tax expense					(630	)		(9,410	)
Income tax expense from continuing operations					(389	)		(719	)
Net loss from continuing operations attributable to the Company’s shareholders					(1,019	)		(10,129	)
Discontinued operations:
Net income from discontinued operations					–			1,282
Net income from discontinued operations attributable to the Company’s shareholders					–			1,282
Net loss attributable to the Company’s shareholders					(1,019	)		(8,847	)
Other comprehensive income
Foreign currency translation adjustment					–			–
Comprehensive loss attributable to the Company’s shareholders					(1,019	)		(8,847	)
Net income per share:
Weighted average number of ordinary shares
Continuing operations					12,938,128			12,938,128
Discontinued operations					–			12,938,128
Weighted average number of diluted ordinary shares
Continuing operations					12,938,128			12,938,128
Discontinued operations					–			12,938,128
Basic (loss)/income per share attributable to the Company’s shareholders
Continuing operations					(HK$0.08)			(HK$0.78)
Discontinued operations					–			HK$0.10
Diluted (loss)/income per share attributable to the Company’s shareholders.
Continuing operations					(HK$0.08)			(HK$0.78)
Discontinued operations					–			HK$0.10

PLASTEC TECHNOLOGIES, LTD.   CONSOLIDATED BALANCE SHEETS (Hong Kong dollars in thousands, except number of shares, per share data and unless otherwise stated)
			(Unaudited)			(Audited)
			June 30, 2020			December 31, 2019
			HK$			HK$
ASSETS
Current assets
Cash and cash equivalents			183,732			185,530
Deposits, prepayment and other receivables			2,209			1,754
Total current assets			185,941			187,284
Property, plant and equipment, net			242			423
Intangible assets			438			438
Total assets			186,621			188,145
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Other payables and accruals			447			1,341
Tax payable			9,796			9,407
Total current liabilities			10,243			10,748
Total liabilities			10,243			10,748
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, 2020 and December 31, 2019, respectively)			101			101
Additional paid-in capital			26,049			26,049
Accumulated other comprehensive income			(30	)		(30	)
Retained earnings			150,258			151,277
Total shareholders’ equity			176,378			177,397
Total liabilities and shareholders’ equity			186,621			188,145

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,
					2020			2019
					HK$			HK$
Operating activities
Net loss					(1,019	)		(8,847	)
Less: Net income from discontinued operations					–			1,282
Net loss from continuing operations					(1,019	)		(10,129	)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization					181			181
Gain on disposal of a subsidiary					(29	)		–
Changes in operating assets and liabilities:
Deposits, prepayment and other receivables					(452	)		53
Other payables and accruals					(895	)		5,287
Tax payables					389			719
Net cash used in continuing operations					(1,825	)		(3,889	)
Net cash provided by discontinued operations					–			12
Net cash used in operating activities					(1,825	)		(3,877	)
Investing activities
Net cash inflow from disposals of subsidiaries (net of cash disposed of, HK$1 for the 6-month period ended June 30, 2020 and nil for the 6-month period ended June 30, 2019)					27			165,506
Net cash provided by continuing operations					27			165,506
Net cash used in discontinued operations					–			–
Net cash provided by investing activities					27			165,506
Financing activity
Dividends paid					–			(252,294	)
Net cash used in continuing operations					–			(252,294	)
Net cash used in financing activity					–			(252,294	)
Net decrease in cash and cash equivalents					(1,798	)		(90,665	)
Effect of exchange rate changes on cash and cash equivalents					–			–
Cash and cash equivalents, beginning of period					185,530			272,820
Cash and cash equivalents, end of period					183,732			182,155
Less: cash and cash equivalents from discontinued operations					–			(82	)
Cash and cash equivalents, end of the period from continuing operations					183,732			182,073
SUPPLEMENTARY DISCLOSURES OF CASH FLOW INFORMATION FROM CONTINUING OPERATIONS:
Interest received, net					979			1,955

 

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