Apr 27, 2020   SOURCE: BusinessWire

Plastec Technologies Reports Fiscal 2019 Financial Results

Plastec Technologies, Ltd. (OTCBB: PLTYF) (the “Company”) today reported audited financial results for the fiscal 2019 year ended December 31, 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.

Special Dividends Paid to Shareholders During Fiscal 2019 Year

During its fiscal 2019 year, the Company paid $4.10 per ordinary share to shareholders in the form of two special cash dividends, paid to shareholders of record on June 28, 2019 ($2.50 per ordinary share) and December 12, 2019 ($1.60 per ordinary share).

Current Balance Sheet Highlights

  • $22.6 million in working capital at December 31, 2019, compared to $54.9 million at December 31, 2018.
  • Book value per share was $1.76 at December 31, 2019, compared to $5.45 at December 31, 2018.

Management Comments

Mr. Kin Sun Sze-To, Chairman of the Company, stated, “The Company has successfully completed all intended obligations for its legacy business, while continuing to maintain our public company listing status in order to evaluate investment opportunities in the future. During this process, we have maintained a low expense structure while continuing to return capital to our shareholders in the form of special cash dividends.”

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

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

 

 

Year ended

Year ended

Year ended

December 31,

December 31,

December 31,

 

2017

2018

2019

 

HK$

HK$

HK$

 

 

 

 

Revenues

-

-

-

 

 

 

 

Operating (expenses)/income, net

 

 

 

Selling, general and administrative expenses

(6,614)

(4,554)

(15,083)

Other income

-

9,954

-

Total operating (expenses)/income, net

(6,614)

5,400

(15,083)

 

 

 

 

Income/(loss) from operations

(6,614)

5,400

(15,083)

 

 

 

 

Interest income

2,213

3,082

3,297

Income/(loss) before income tax expense

(4,401)

8,482

(11,786)

 

 

 

 

Income tax expense from continuing operations

(524)

(2,435)

(729)

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

(4,925)

6,047

(12,515)

 

 

 

 

Discontinued operations:

 

 

 

Net income from discontinued operations (including gain of HK$47,845 (2018: HK$171,809, 2017: HK$141,341) upon the disposal)

144,820

171,927

53,364

Income tax expenses from discontinued operations

-

-

-

 

 

 

 

Net income from discontinued operations attributable to the Company’s shareholders

144,820

171,927

53,364

 

 

 

 

Net income attributable to the Company’s shareholders

139,895

177,974

40,849

 

 

 

 

Other comprehensive income:

 

 

 

Continuing operations

-

-

-

Discontinued operations

(813)

6,674

-

 

(813)

6,674

-

Comprehensive income attributable to the Company’s shareholders

139,082

184,648

40,849

 

Net income/(loss) per share:

 

Weighted average number of ordinary shares

Continuing operations

12,938,128

12,938,128

12,938,128

Discontinued operations

12,938,128

12,938,128

12,938,128

 

Weighted average number of diluted ordinary shares

Continuing operations

12,938,128

12,938,128

12,938,128

Discontinued operations

12,938,128

12,938,128

12,938,128

 

Basic income per share attributable from

Continuing operations

HK$(0.38)

HK$0.47

HK$(0.97)

Discontinued operations

HK$11.19

HK$13.29

HK$4.13

 

Diluted income per share attributable from

Continuing operations

HK$(0.38)

HK$0.47

HK$(0.97)

Discontinued operations

HK$11.19

HK$13.29

HK$4.13

PLASTEC TECHNOLOGIES, LTD.

 

CONSOLIDATED BALANCE SHEETS

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

 

 

December 31,

December 31,

 

2018

2019

 

HK$

HK$

 

ASSETS

 

Current assets

 

 

Cash and cash equivalents

272,750

 

185,530

 

Deposits, prepayment and other receivables

1,685

 

1,754

 

Consideration receivable

165,506

 

-

 

Current assets from discontinued operations

1,724

 

-

 

Total current assets

441,665

 

187,284

 

 

 

 

Property, plant and equipment, net

786

 

423

 

Intangible assets

438

 

438

 

Non-current assets from discontinued operations

120,550

 

-

 

Total assets

563,439

 

188,145

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

Current liabilities

 

 

Other payables and accruals

776

 

1,341

 

Tax payable

8,678

 

9,407

 

Current liabilities from discontinued operations

3,676

 

-

 

Total current liabilities

13,130

 

10,748

 

 

 

 

Total liabilities

13,130

 

10,748

 

 

 

 

Commitments and contingencies

-

 

-

 

 

 

 

Shareholders’ equity

 

 

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

101

 

101

 

Additional paid-in capital

26,049

 

26,049

 

Accumulated other comprehensive income

(30

)

(30

)

Retained earnings

524,189

 

151,277

 

Total shareholders’ equity

550,309

 

177,397

 

 

 

 

Total liabilities and shareholders’ equity

563,439

 

188,145

PLASTEC TECHNOLOGIES, LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

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

 

 

 

 Year ended

 

 Year ended

 

 Year ended

December 31,

December 31,

December 31,

 

 

2017

 

2018

 

2019

 

 

HK$

 

HK$

 

HK$

 

 

 

 

 

 

 

Operating activities

 

 

 

 

 

 

Net income

 

139,895

 

177,974

 

40,849

Less: Net income from discontinued operations

 

(144,820)

 

(171,927)

 

(53,364)

Net income/(loss) from continuing operations

 

(4,925)

 

6,047

 

(12,515)

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

 

 

 

 

 

 

Amortisation

 

363

 

363

 

363

Changes in operating assets and liabilities:

 

 

 

 

 

 

Deposits, prepayment and other receivables

 

(402)

 

(310)

 

(70)

Other payables and accruals

 

(475)

 

(221)

 

565

Tax payables

 

524

 

2,435

 

729

Net cash provided by/(used in) continuing operations

 

(4,915)

 

8,314

 

(10,928)

Net cash provided by/(used in) discontinued operations

 

(16,774)

 

17,168

 

11,986

Net cash provided by/(used in) operating activities

 

(21,689)

 

25,482

 

1,058

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

Net cash inflow from disposals of subsidiaries (net of cash disposed of HK$93 for the year 2019, HK$49,666 for the year 2018 and HK$ nil for the year 2017)

 

131,686

 

350,655

 

325,413

Net cash provided by continuing operations

 

131,686

 

350,655

 

325,413

Net cash used in discontinued operations

 

(48,943)

 

(101,410)

 

-

Net cash provided by investing activities

 

82,743

 

249,245

 

325,413

 

 

 

 

 

 

 

Financing activity

 

 

 

 

 

 

Dividends paid

 

(151,376)

 

(403,669)

 

(413,761)

Net cash used in continuing operations

 

(151,376)

 

(403,669)

 

(413,761)

Net cash used in discontinued operations

 

-

 

-

 

-

Net cash used in financing activity

 

(151,376)

 

(403,669)

 

(413,761)

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

 

(90,322)

 

(128,942)

 

(87,290)

 

 

 

 

 

 

 

Effect of exchange rate changes

 

(813)

 

6,674

 

-

Cash and cash equivalents, beginning of year

 

486,222

 

395,087

 

272,820

Cash and cash equivalents, end of year

 

395,087

 

272,819

 

185,530

Less: cash and cash equivalents from discontinued operations

 

(94,516)

 

(69)

 

-

Cash and cash equivalents, end of year from continuing operations

 

300,571

 

272,750

 

185,530

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

 

 

 

 

 

 

Interest income

 

2,213

 

3,082

 

3,297

Income taxes paid

 

-

 

-

 

-

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY:

 

 

 

 

 

 

Consideration receivable

 

141,341

 

165,506

 

-