Plastec Technologies Reports Fiscal 2021 First Half Results

Declares Special Cash Dividend of $0.80 Per Share;

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 2021 six-month period ended June 30, 2021. 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

• $22.1 million in workingcapital at June 30, 2021, compared to $22.2million at December 31, 2020.
• Book value per share was$1.71 at June 30, 2021, compared to $1.72 at December 31, 2020.

Declares Special Cash Dividend of $0.80 Per Share

The Company’s Board of Directors has, today, declared a special cash dividend of $0.80 per ordinary share payable on or about August 26, 2021 to shareholders of record as of August 19, 2021.

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, 2021) through September 25, 2022, 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 remain committed to rewarding shareholders while the Company continues to evaluate potential investment opportunities. With the payment of this special dividend, we have distributed cash dividends in the aggregate of $18.4 per ordinary share to shareholders since closing of the divestment transaction in October 2016 as a measure of rewarding them for their ownership.”

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,
						2021		2020
						HK$		HK$
Revenues						–		–
Operating (expenses)/income, net
Selling, general and administrative expenses						(1,014)		(1,638)
Gain on disposal of a subsidiary						–		29
Total operating expenses, net						(1,014)		(1,609)
Loss from operations						(1,014)		(1,609)
Interest income						62		979
Loss before income tax expense						(952)		(630)
Income tax expense						(390)		(389)
Net loss attributable to the Company’s shareholders						(1,342)		(1,019)
Other comprehensive income
Foreign currency translation adjustment						–		–
Comprehensive loss attributable to the Company’s shareholders						(1,342)		(1,019)

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,
			2021		2020
			HK$		HK$
ASSETS
Current assets
Cash and cash equivalents			180,703		182,697
Deposits, prepayment and other receivables			2,871		2,450
Total current assets			183,574		185,147
Property, plant and equipment, net			–		60
Intangible assets			438		438
Total assets			184,012		185,645
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Other payables and accruals			888		1,569
Tax payable			10,576		10,186
Total current liabilities			11,464		11,755
Total liabilities			11,464		11,755
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, 2021 and December 31, 2020, respectively)			101		101
Additional paid-in capital			26,049		26,049
Accumulated other comprehensive income			(30)		(30)
Retained earnings			146,428		147,770
Total shareholders’ equity			172,548		173,890
Total liabilities and shareholders’ equity			184,012		185,645

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,
					2021		2020
					HK$		HK$
Operating activities
Net loss					(1,342)		(1,019)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization					60		181
Gain on disposal of a subsidiary					–		(29)
Changes in operating assets and liabilities:
Deposits, prepayment and other receivables					(421)		(452)
Other payables and accruals					(681)		(895)
Tax payables					390		389
Net cash used in operating activities					(1,994)		(1,825)
Investing activities
Net cash inflow from disposals of subsidiaries (net of cash disposed of, HK$nil for the 6-month period ended June 30, 2021 and HK$1 for the 6-month period ended June 30, 2020)					–		27
Net cash provided by investing activities					–		27
Net decrease in cash and cash equivalents					(1,994)		(1,798)
Cash and cash equivalents, beginning of period					182,697		185,530
Cash and cash equivalents, end of period					180,703		183,732
SUPPLEMENTARY DISCLOSURES OF CASH FLOW INFORMATION:
Interest received, net					62		979

 

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