Plastec Technologies Reports 2017 First Half Financial Results; Announces Extension of Securities Repurchase Plan
Plastec Technologies, Ltd. - (OTCBB:PLTYF), (the “Company”), today reported unaudited financial results for the fiscal 2017 six-month period ended June 30, 2017. 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.
2016 Sale of Assets
The Company’s financial results reflect the closing of the October 11, 2016 Share Transfer Agreement (“Agreement”) with Shanghai Yongli Belting Co., Ltd. (“SYB”) and its wholly-owned subsidiary, Shanghai Yongjing Investment Management Co., Ltd. As a result, the Company no longer owns Plastec International Holdings Limited (“Plastec”) or its integrated plastic manufacturing operations, all being disposed of to SYB.
The Company, as a holding company, is now focused on:
- completing the construction of its manufacturing plant in Kai Ping, China which is intended to be disposed of to SYB prior to its official operation at a price equivalent to the capital used for its construction, subject to terms and specifics to be agreed upon by the parties concerned in due course;
- collecting rental income from certain property it owns and that is being leased to one of Plastec’s subsidiaries;
- collecting any payments it may receive upon Plastec achieving the performance targets for the years ended December 31, 2017 and 2018 as described in the Agreement; and
- exploring other investment opportunities.
Current Balance Sheet Highlights
- $56.3 million in working capital at June 30, 2017, compared to $78.3 million at December 31, 2016.
- Book value per share was $6.23 at June 30, 2017, compared to $7.75 at December 31, 2016.
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) through September 25, 2018, allowing it to purchase up to $5 million of its securities in both open market and privately negotiated transactions at the discretion of the Company’s management and as market conditions allow; which repurchase plan may be suspended, modified or discontinued without any notice at any time.
Management Comments
Mr. Kin Sun Sze-To, Chairman of the Company, stated, “We continue to evaluate potential opportunities to leverage our strong capital position while also rewarding our shareholders as we unwind the legacy business. We were pleased to pay a special dividend during the period, which was generated from the achievement of performance targets by the disposed line of business for the year ended December 31, 2016.”
Forward Looking Statements
This press release contains “forward-looking statements.” These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Actual results may differ from expectations, estimates and projections and, consequently, you should not rely on these forward looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements.
PLASTEC TECHNOLOGIES, LTD. |
||||||
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) |
||||||
(Hong Kong dollars in thousands, except number of shares, per share data and unless otherwise stated) |
||||||
For the 6-month
period ended June 30, |
||||||
2017 | 2016 | |||||
HK$ | HK$ | |||||
Revenues | - | - | ||||
Operating (expenses)/income, net | ||||||
Selling, general and administrative expenses | (9,484 | ) | (8,827 | ) | ||
Other income | 7,562 | 13,390 | ||||
Gain on disposal of property, plant and equipment | - | 15 | ||||
Total operating (expenses)/income, net | (1,922 | ) | 4,578 | |||
(Loss)/income from operations | (1,922 | ) | 4,578 | |||
Interest income | 1,194 | 489 | ||||
(Loss)/income before income tax expense | (728 | ) | 5,067 | |||
Income tax (expense)/credit from continuing operations | (384 | ) | 330 | |||
Net (loss)/income from continuing operations attributable to the Company’s shareholders |
(1,112 | ) | 5,397 | |||
Discontinued operations: | ||||||
Net income from discontinued operations | - | 120,340 | ||||
Income tax expenses from discontinued operations | - | (16,254 | ) | |||
Net income from discontinued operations attributable to the Company’s shareholders |
- | 104,086 | ||||
Net (loss)/income attributable to the Company’s shareholders |
(1,112 | ) | 109,483 | |||
Other comprehensive income | ||||||
Foreign currency translation adjustment | (811 | ) | (9,255 | ) | ||
Comprehensive (loss)/income attributable to the Company’s shareholders |
(1,923 |
) |
100,228 |
|||
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 from | ||||||
Continuing operations | (0.09 | ) | 0.42 | |||
Discontinued operations | - | 8.04 | ||||
Diluted (loss)/income per share attributable from | ||||||
Continuing operations | (0.09 | ) | 0.42 | |||
Discontinued operations | - | 8.04 | ||||
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, |
|||||
2017 |
2016 |
|||||
HK$ |
HK$ |
|||||
ASSETS |
||||||
Current assets |
||||||
Cash and cash equivalents |
441,995 |
486,222 |
||||
Deposits, prepayment and other receivables |
8,850 |
4,833 |
||||
Consideration receivable |
- |
131,686 |
||||
Total current assets |
450,845 |
622,741 |
||||
Property, plant and equipment, net |
172,740 |
153,782 |
||||
Prepaid lease payments, net |
15,875 |
16,638 |
||||
Intangible assets |
438 |
438 |
||||
Total assets |
639,898 |
793,599 |
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||
Current liabilities | ||||||
Other payables and accruals | 5,469 | 6,138 | ||||
Tax payable | 6,104 | 5,837 | ||||
Total current liabilities | 11,573 | 11,975 | ||||
Total liabilities | 11,573 | 11,975 | ||||
Commitments and contingencies | - | - | ||||
Shareholders’ equity | ||||||
Ordinary shares (US$0.001 par value; 100,000,000 |
101 |
101 |
||||
Additional paid-in capital | 26,049 | 26,049 | ||||
Accumulated other comprehensive income | (6,702 | ) | (5,891 | ) | ||
Retained earnings | 608,877 | 761,365 | ||||
Total shareholders’ equity | 628,325 | 781,624 | ||||
Total liabilities and shareholders’ equity | 639,898 | 793,599 | ||||
PLASTEC TECHNOLOGIES, LTD. |
||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
||||||
(Hong Kong dollars in thousands, except number of shares, per share data and unless otherwise stated) |
||||||
For the 6-month
period ended June 30, |
||||||
2017 | 2016 | |||||
HK$ | HK$ | |||||
Operating activities | ||||||
Net (loss)/income | (1,112 | ) | 109,483 | |||
Less: Net income from discontinued operations | - | (104,086 | ) | |||
Net (loss)/income from continuing operations | (1,112 | ) | 5,397 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 4,280 | 4,422 | ||||
Gain on disposal of property, plant and equipment | - | (15 | ) | |||
Changes in operating assets and liabilities: | ||||||
Deposits, prepayment and other receivables | (262 | ) | (13,930 | ) | ||
Other payables and accruals | (695 | ) | (4,375 | ) | ||
Tax payables | 270 | (94 | ) | |||
Net cash provided by/(used in) continuing operations | 2,481 | (8,595 | ) | |||
Net cash provided by discontinued operations | - | 125,596 | ||||
Net cash provided by operating activities | 2,481 | 117,001 | ||||
Investing activities | ||||||
Purchase of property, plant and equipment | (23,223 | ) | - | |||
Proceeds from disposal of property, plant and equipment | - | 15 | ||||
Proceeds from consideration receivable, net | 128,702 | - | ||||
Net cash provided by continuing operations | 105,479 | 15 | ||||
Net cash used in discontinued operations | - | (17,679 | ) | |||
Net cash provided by/(used in) investing activities | 105,479 | (17,664 | ) | |||
Financing activities | ||||||
Dividends paid | (151,376 | ) | (20,183 | ) | ||
Net cash used in continuing operations | (151,376 | ) | (20,183 | ) | ||
Net cash provided by discontinued operations | - | 3,775 | ||||
Net cash used in financing activities | (151,376 | ) | (16,408 | ) | ||
Net (decrease)/increase in cash and cash equivalents | (43,416 | ) | 82,929 | |||
Effect of exchange rate changes on cash and cash equivalents | (811 | ) | (9,255 | ) | ||
Cash and cash equivalents, beginning of period | 486,222 | 475,361 | ||||
Cash and cash equivalents, end of period | 441,995 | 549,035 | ||||
Less: cash and cash equivalents from discontinued operations | - | (266,378 | ) | |||
Cash and cash equivalents, end of the period from continuing operations | 441,995 | 282,657 | ||||
SUPPLEMENTARY DISCLOSURES OF CASH FLOW INFORMATION FROM
CONTINUING OPERATIONS: |
||||||
Interest received, net | 1,194 | 489 | ||||
Income taxes paid/(refund) | 115 | (424 | ) | |||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170809005586/en/