Exhibit 99.1
PLASTEC TECHNOLOGIES REPORTS FISCAL 2018 FINANCIAL RESULTS;
ACHIEVEMENT OF 2018 PERFORMANCE TARGET
Hong Kong – April 16, 2019 – Plastec Technologies, Ltd. - (OTCBB: PLTYF), (the “Company”), today reported audited financial results for the fiscal 2018 year ended December 31, 2018. 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 any shareholding in Plastec International Holdings Limited (“Plastec”) or its integrated plastic manufacturing operations, all of which were being disposed of to SYB.
Since closing of the divestiture transaction, the Company, as a holding company, has been focused on:
| • | completing the construction of its manufacturing plant in Kai Ping, China, which it completed and transferred the ownership interests in the subsidiaries holding the plant to Plastec on April 20, 2018; |
| • | collecting rental income from certain property it owns and that is being leased to one of Plastec’s subsidiaries; |
| • | collecting earnouts upon Plastec achieving the performance targets for the fiscal years ended December 31, 2016 through 2018; and |
| • | exploring any investment opportunities. |
Impact of Sale of Assets on the Company’s Latest Financial Statements
The disposals of Plastec and former subsidiaries holding ownership interests in the manufacturing plant in Kai Ping, China represented a strategic shift and had a major effect on the Company’s results of operations. Accordingly, assets and liabilities, revenues and expenses, and cash flows related to the disposed business lines have been reclassified as discontinued operations in the consolidated financial statements for the years ended December 31, 2018, 2017 and 2016. The consolidated balance sheets as of December 31, 2017, the consolidated statements of operations and comprehensive income and the consolidated statements of cash flows for the years ended December 31, 2016 and 2017 have been adjusted retrospectively to reflect this strategic shift.
Current Balance Sheet Highlights
| • | $54.9 million in working capital at December 31, 2018, compared to $71.7 million at December 31, 2017. |
| • | Book value per share was $5.45 at December 31, 2018, compared to $7.62 at December 31, 2017. |
Management Comments
Mr. Kin Sun Sze-To, Chairman of the Company, stated, “During the year we completed the construction and disposal of the manufacturing plant, and have completely unwound the Company’s requirements for our legacy business. We continue to maintain our public listing as the Company evaluates potential opportunities to leverage our strong capital position.”
Forward Looking Statements
This press release contains “forward-looking statements.” These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Actual results may differ from expectations, estimates and projections and, consequently, you should not rely on these forward looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements.
CONTACT:
Plastec Technologies, Ltd.
HL Ning, Chief Financial Officer
ning@plastec.com.hk
INVESTOR RELATIONS:
| The Equity Group Inc. | In China |
| Adam Prior, Senior Vice President | Katherine Yao, Senior Associate |
| (212) 836-9606 | +86 10 6587 6435 |
| aprior@equityny.com | kyao@equityny.com |
| Plastec Technologies, Ltd. | Page 2 |
| April 16, 2019 |
PLASTEC TECHNOLOGIES, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Hong Kong dollars in thousands, except number of shares, per share data and unless otherwise stated)
Year ended December 31, |
Year ended December 31, |
Year ended December 31, | ||||||||||
| 2016 | 2017 | 2018 | ||||||||||
| HK$ | HK$ | HK$ | ||||||||||
| Revenues | - | - | - | |||||||||
| Operating (expenses)/income, net | ||||||||||||
| Selling, general and administrative expenses | (18,472 | ) | (16,489 | ) | (5,351 | ) | ||||||
| Other income | 23,874 | 16,413 | 16,754 | |||||||||
| Gain on disposal of property, plant and equipment | 545 | - | - | |||||||||
| Total operating (expenses)/income, net | 5,947 | (76 | ) | 11,403 | ||||||||
| Income/(loss) from operations | 5,947 | (76 | ) | 11,403 | ||||||||
| Interest income | 1,236 | 2,213 | 3,082 | |||||||||
| Income before income tax expense | 7,183 | 2,137 | 14,485 | |||||||||
| Income tax expense from continuing operations | (1,123 | ) | (524 | ) | (2,435 | ) | ||||||
| Net income from continuing operations attributable to the Company’s shareholders | 6,060 | 1,613 | 12,050 | |||||||||
| Discontinued operations: | ||||||||||||
| Net income from discontinued operations (including gain of HK$171,809 (2017: HK$141,341, 2016: HK$540,921) upon the disposal) | 717,287 | 138,282 | 165,924 | |||||||||
| Income tax expenses from discontinued operations | (31,305 | ) | - | - | ||||||||
| Net income from discontinued operations attributable to the Company’s shareholders | 685,982 | 138,282 | 165,924 | |||||||||
| Net income attributable to the Company’s shareholders | 692,042 | 139,895 | 177,974 | |||||||||
| Other comprehensive income: | ||||||||||||
| Continuing operations | (32 | ) | - | - | ||||||||
| Discontinued operations | (13,458 | ) | (813 | ) | 6,674 | |||||||
| (13,490 | ) | (813 | ) | 6,674 | ||||||||
| Comprehensive income attributable to the Company’s shareholders | 678,552 | 139,082 | 184,648 | |||||||||
| Net income 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$0.47 | HK$0.12 | HK$0.93 | |||||||||
| Discontinued operations | HK$53.02 | HK$10.69 | HK$12.82 | |||||||||
| Diluted income per share attributable from | ||||||||||||
| Continuing operations | HK$0.47 | HK$0.12 | HK$0.93 | |||||||||
| Discontinued operations | HK$53.02 | HK$10.69 | HK$12.82 | |||||||||
| Plastec Technologies, Ltd. | Page 3 |
| April 16, 2019 |
PLASTEC TECHNOLOGIES, LTD.
CONSOLIDATED BALANCE SHEETS
(Hong Kong dollars in thousands, except number of shares, per share data and unless otherwise stated)
| December 31, | December 31, | |||||||
| 2017 | 2018 | |||||||
| HK$ | HK$ | |||||||
ASSETS
| Current assets | ||||||||
| Cash and cash equivalents | 300,588 | 272,820 | ||||||
| Deposits, prepayment and other receivables | 3,230 | 3,339 | ||||||
| Consideration receivable | 141,341 | 165,506 | ||||||
| Current assets from discontinued operations | 124,843 | - | ||||||
| Total current assets | 570,002 | 441,665 | ||||||
| Property, plant and equipment, net | 114,209 | 107,752 | ||||||
| Prepaid lease payments, net | 15,111 | 13,584 | ||||||
| Intangible assets | 438 | 438 | ||||||
| Non-current assets from discontinued operations | 80,503 | - | ||||||
| Total assets | 780,263 | 563,439 | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
| Current liabilities | ||||||||
| Other payables and accruals | 4,431 | 4,452 | ||||||
| Tax payable | 6,243 | 8,678 | ||||||
| Current liabilities from discontinued operations | 259 | - | ||||||
| Total current liabilities | 10,933 | 13,130 | ||||||
| Total liabilities | 10,933 | 13,130 | ||||||
| Commitments and contingencies | - | - | ||||||
| Shareholders’ equity | ||||||||
| Ordinary shares (U.S.$0.001 par value; 100,000,000 authorized, 12,938,128 and 12,938,128 shares issued and outstanding as of December 31, 2017 and 2018, respectively) | 101 | 101 | ||||||
| Additional paid-in capital | 26,049 | 26,049 | ||||||
| Accumulated other comprehensive income | (6,704 | ) | (30 | ) | ||||
| Retained earnings | 749,884 | 524,189 | ||||||
| Total shareholders’ equity | 769,330 | 550,309 | ||||||
| Total liabilities and shareholders’ equity | 780,263 | 563,439 |
| Plastec Technologies, Ltd. | Page 4 |
| April 16, 2019 |
PLASTEC TECHNOLOGIES, LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Hong Kong dollars in thousands, except number of shares, per share data and unless otherwise stated)
Year ended December 31, |
Year ended December 31, |
Year ended December 31, | ||||||||||
| 2016 | 2017 | 2018 | ||||||||||
| HK$ | HK$ | HK$ | ||||||||||
| Operating activities | ||||||||||||
| Net income | 692,042 | 139,895 | 177,974 | |||||||||
| Less: Net income from discontinued operations | (685,982 | ) | (138,282 | ) | (165,924 | ) | ||||||
| Net income from continuing operations | 6,060 | 1,613 | 12,050 | |||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
| Depreciation and amortization | 8,376 | 8,176 | 7,984 | |||||||||
| Net gain on disposal of property, plant and equipment | (545 | ) | - | - | ||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Deposits, prepayment and other receivables | 1,236 | (435 | ) | (309 | ) | |||||||
| Other payables and accruals | (19,803 | ) | (1,658 | ) | 19 | |||||||
| Tax payables | 1,547 | 524 | 2,435 | |||||||||
| Net cash provided by/(used in) continuing operations | (3,129 | ) | 8,220 | 22,179 | ||||||||
| Net cash provided by/(used in) discontinued operations | 195,060 | (29,909 | ) | 3,304 | ||||||||
| Net cash provided by/(used in) operating activities | 191,931 | (21,689 | ) | 25,483 | ||||||||
| Investing activities | ||||||||||||
| Proceeds from disposal of property, plant and equipment | 545 | - | - | |||||||||
| Net cash inflow from disposal of subsidiaries (net of cash disposed of HK$49,666 for the year 2018, HK$314,079 for the year 2016) | 703,363 | 131,686 | 350,655 | |||||||||
| Net cash provided by continuing operations | 703,908 | 131,686 | 350,655 | |||||||||
| Net cash used in discontinued operations | (28,059 | ) | (48,943 | ) | (101,410 | ) | ||||||
| Net cash provided by investing activities | 675,849 | 82,743 | 249,245 | |||||||||
| Financing activity | ||||||||||||
| Dividends paid | (837,614 | ) | (151,376 | ) | (403,669 | ) | ||||||
| Net cash used in continuing operations | (837,614 | ) | (151,376 | ) | (403,669 | ) | ||||||
| Net cash used in discontinued operations | (5,815 | ) | - | - | ||||||||
| Net cash used in financing activities | (843,429 | ) | (151,376 | ) | (403,669 | ) | ||||||
| Net increase/(decrease) in cash and cash equivalents | 24,351 | (90,322 | ) | (128,941 | ) | |||||||
| Effect of exchange rate changes | (13,490 | ) | (813 | ) | 6,674 | |||||||
| Cash and cash equivalents, beginning of year | 475,361 | 486,222 | 395,087 | |||||||||
| Cash and cash equivalents, end of year | 486,222 | 395,087 | 272,820 | |||||||||
| Less: cash and cash equivalents from discontinued operations | (335,419 | ) | (94,499 | ) | - | |||||||
| Cash and cash equivalents, end of year from continuing operations | 150,803 | 300,588 | 272,820 | |||||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||
| Interest income | 1,236 | 2,213 | 3,082 | |||||||||
| Income taxes paid/(refund) | - | - | - | |||||||||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITY: | ||||||||||||
| Consideration receivable | 131,686 | 141,341 | 165,506 | |||||||||