Plastec Technologies Reports Fiscal 2021 Financial Results

Rhea-AI Summary

Plastec Technologies, Ltd. (OTCBB: PLTYF) reported its audited financial results for the fiscal year 2021, ending December 31, 2021. The company experienced a significant decline in working capital, falling from $22.2 million in 2020 to $11.5 million in 2021. Additionally, the book value per share decreased from $1.72 to $0.89 during the same period. Chairman Kin Sun Sze-To noted the company's commitment to maintaining its public status and low expense infrastructure to explore investment opportunities.

Positive

• Maintained public company status and low expense infrastructure.

Negative

• Working capital declined from $22.2 million in 2020 to $11.5 million in 2021.
• Book value per share decreased from $1.72 to $0.89.

HONG KONG--(BUSINESS WIRE)-- Plastec Technologies, Ltd. (OTCBB: PLTYF) (the “Company”) today reported audited financial results for the fiscal 2021 year ended December 31, 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

• $11.5 million in working capital at December 31, 2021, compared to $22.2 million at December 31, 2020.
• Book value per share was $0.89 at December 31, 2021, compared to $1.72 at December 31, 2020.

Management Comments

Mr. Kin Sun Sze-To, Chairman of the Company, stated, “During 2021, the Company has maintained its public company status and low expense infrastructure to enable our ongoing exploration of potential investments while retaining the financial flexibility to seize possible opportunities that may occur.”

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 December 31,			Year ended December 31,			Year ended December 31,
			2019			2020			2021
			HK$			HK$			HK$
Revenues			-			-			-
Operating expenses, net
Gain on disposal of a subsidiary			-			29			-
Selling, general and administrative expenses			(15,083	)		(3,882	)		(2,273	)
Other income			-			7			-
Total operating expenses, net			(15,083	)		(3,846	)		(2,273	)
Loss from operations			(15,083	)		(3,846	)		(2,273	)
Interest income			3,297			1,118			112
Loss before income tax expense			(11,786	)		(2,728	)		(2,161	)
Income tax expense from continuing operations (note 7)			(729	)		(779	)		(840	)
Net loss from continuing operations attributable to the Company’s shareholders			(12,515	)		(3,507	)		(3,001	)
Discontinued operations (note 3):
Net income from discontinued operations (including gain of 2020: HK$Nil and 2019: HK$47,845 upon disposals)			53,364			-			-
Income tax expenses from discontinued operations			-			-			-
Net income from discontinued operations attributable to the Company’s shareholders			53,364			-			-
Net income/(loss) attributable to the Company’s shareholders			40,849			(3,507	)		(3,001	)
Comprehensive income/(loss) attributable to the Company’s shareholders			40,849			(3,507	)		(3,001	)

PLASTEC TECHNOLOGIES, LTD. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (CONTINUED) (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,
			2019		2020		2021
			HK$		HK$		HK$
Net income/(loss) per share (note 8):
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 net income/(loss) per share attributable from
Continuing operations			HK$(0.97)		HK$(0.27)		HK$(0.23)
Discontinued operations			HK$4.13		-		-
Diluted net income/(loss) per share attributable from
Continuing operations			HK$(0.97)		HK$(0.27)		HK$(0.23)
Discontinued operations			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,
		2020		2021
		HK$		HK$
ASSETS
Current assets
Cash and cash equivalents		182,697		98,732
Deposits, prepayment and other receivables (note 4)		2,450		3,131
Total current assets		185,147		101,863
Property, plant and equipment, net (note 5)		60		-
Intangible assets		438		438
Total assets		185,645		102,301

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Other payables and accruals (note 6)		1,569		1,120
Tax payable		10,186		11,026
Total current liabilities		11,755		12,146
Total liabilities		11,755		12,146
Commitments and contingencies (note 9)		-		-
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 2020 and 2021, respectively)		101		101
Additional paid-in capital		26,049		26,049
Accumulated other comprehensive income		(30)		(30)
Retained earnings		147,770		64,035
Total shareholders’ equity		173,890		90,155
Total liabilities and shareholders’ equity		185,645		102,301

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,
		2019			2020			2021
		HK$			HK$			HK$
Operating activities
Net income / (loss)		40,849			(3,507	)		(3,001	)
Less: Net income from discontinued operations		(53,364	)		-			-
Net loss from continuing operations		(12,515	)		(3,507	)		(3,001	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Amortisation		363			363			60
Gain on disposal of a subsidiary		-			(29	)		-
Changes in operating assets and liabilities:
Deposits, prepayment and other receivables		(70	)		(696	)		(681	)
Other payables and accruals		565			228			(449	)
Tax payables		729			779			840
Net cash used in continuing operations		(10,928	)		(2,862	)		(3,231	)
Net cash provided by discontinued operations		11,987			-			-
Net cash provided by/(used in) operating activities		1,059			(2,862	)		(3,231	)
Investing activity
Net cash inflow from disposals of subsidiaries (net of cash disposed of HK$27 for the year 2020 and HK$93 for the year 2019)		325,413			29			-
Net cash provided by investing activity from continuing operations		325,413			29			-
Financing activity
Dividends paid		(413,761	)		-			(80,734	)
Net cash used in financing activity from continuing operations		(413,761	)		-			(80,734	)
Net decrease in cash and cash equivalents		(87,289	)		(2,833	)		(83,965	)
Cash and cash equivalents, beginning of year from continuing operations		272,819			185,530			182,697
Cash and cash equivalents, end of year from continuing operations		185,530			182,697			98,732
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest income		3,297			1,118			112
Income taxes paid		-			-			-

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220421006037/en/

Plastec Technologies, Ltd.

HL Ning, Chief Financial Officer

ning@plastec.com.hk



INVESTOR RELATIONS:

The Equity Group Inc.

Alice Zhang, Investor Relations Analyst

(212) 836-9610

azhang@equityny.com

Source: Plastec Technologies, Ltd.

FAQ

What were Plastec Technologies' financial results for 2021?

Plastec Technologies reported a working capital of $11.5 million and a book value per share of $0.89 for the fiscal year 2021.

How did Plastec Technologies' working capital change in 2021?

The working capital decreased from $22.2 million in 2020 to $11.5 million in 2021.

What is the book value per share for PLTYF as of December 31, 2021?

As of December 31, 2021, the book value per share for Plastec Technologies was $0.89.

Who is the Chairman of Plastec Technologies?

The Chairman of Plastec Technologies is Kin Sun Sze-To.