Plastec Technologies Reports Fiscal 2022 First Half Results; Announces Extension of Securities Repurchase Plan

Rhea-AI Summary

Plastec Technologies, Ltd. (OTCBB: PLTYF) reported unaudited financial results for the six months ending June 30, 2022. The Company holds $11.3 million in working capital, down slightly from $11.5 million at the end of 2021. Book value per share is $0.88, a decrease from $0.89. The Board has extended its securities repurchase plan until September 25, 2023, permitting up to $5 million in repurchases. Chairman Kin Sun Sze-To emphasized the Company’s focus on maintaining a lean expense structure and readiness to seize market opportunities.

Positive

• Extension of securities repurchase plan until September 25, 2023.
• Ability to repurchase up to $5 million in securities, showing confidence in stock value.

Negative

• Decline in working capital from $11.5 million to $11.3 million.
• Decrease in book value per share from $0.89 to $0.88.

HONG KONG--(BUSINESS WIRE)-- Plastec Technologies, Ltd. (OTCBB: PLTYF) (the “Company”) today reported unaudited financial results for the six months ended June 30, 2022. 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

• $11.3 million in working capital at June 30, 2022, compared to $11.5 million at December 31, 2021.
• Book value per share was $0.88 at June 30, 2022, compared to $0.89 at December 31, 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, 2022) through September 25, 2023, 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, “The Company continues to sustain its public company status while maintaining a lean expense structure and closely monitoring our cash position. In doing so, we believe we are well positioned to quickly act upon suitable opportunities that may arise in the marketplace.”

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,
						2022		2021
						HK$		HK$
Revenues						-		-
Operating expenses, net
Selling, general and administrative expenses						(1,316)		(1,014)
Total operating expenses, net						(1,316)		(1,014)
Loss from operations						(1,316)		(1,014)
Interest income						115		62
Loss before income tax expense						(1,201)		(952)
Income tax expense						(420)		(390)
Net loss attributable to the Company’s shareholders						(1,621)		(1,342)
Other comprehensive income
Foreign currency translation adjustment						-		-
Comprehensive loss attributable to the Company’s shareholders						(1,621)		(1,342)

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,
			2022		2021
			HK$		HK$
ASSETS
Current assets
Cash and cash equivalents			97,372		98,732
Deposits, prepayment and other receivables			3,293		3,131
Total current assets			100,665		101,863
Property, plant and equipment, net			-		-
Intangible assets			438		438
Total assets			101,103		102,301
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Other payables and accruals			1,123		1,120
Tax payable			11,446		11,026
Total current liabilities			12,569		12,146
Total liabilities			12,569		12,146
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, 2022 and December 31, 2021, respectively)			101		101
Additional paid-in capital			26,049		26,049
Accumulated other comprehensive income			(30)		(30)
Retained earnings			62,414		64,035
Total shareholders’ equity			88,534		90,155
Total liabilities and shareholders’ equity			101,103		102,301

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,
					2022		2021
					HK$		HK$
Operating activities
Net loss					(1,621)		(1,342)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization					-		60
Changes in operating assets and liabilities:
Deposits, prepayment and other receivables					(162)		(421)
Other payables and accruals					3		(681)
Tax payables					420		390
Net cash used in operating activities					(1,360)		(1,994)
Net decrease in cash and cash equivalents					(1,360)		(1,994)
Cash and cash equivalents, beginning of period					98,732		182,697
Cash and cash equivalents, end of period					97,372		180,703
SUPPLEMENTARY DISCLOSURES OF CASH FLOW INFORMATION:
Interest received, net					115		62

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220805005353/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 are the financial results for Plastec Technologies (PLTYF) for the first half of 2022?

Plastec Technologies reported $11.3 million in working capital and a book value per share of $0.88 for the six months ending June 30, 2022.

What is Plastec Technologies' current securities repurchase plan?

The securities repurchase plan has been extended to September 25, 2023, allowing for up to $5 million in repurchases.

How has Plastec Technologies' working capital changed in 2022?

Working capital decreased from $11.5 million at December 31, 2021, to $11.3 million as of June 30, 2022.

What does the book value per share indicate for Plastec Technologies (PLTYF)?

The book value per share for Plastec Technologies decreased from $0.89 to $0.88 in the first half of 2022.