Plastec Technologies Reports 2018 First Half Financial Results; Announces Extension of Securities Repurchase Plan; Declares Special Cash Dividend of $2.50 Per Share
Aug. 17, 2018
HONG KONG--(BUSINESS WIRE)--Aug 17, 2018--Plastec Technologies, Ltd. - (OTCBB: PLTYF), (the “Company”), today reported unaudited financial results for the fiscal 2018 six-month period ended June 30, 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 interest 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 any payments it may receive upon Plastec achieving the performance target for the year ended December 31, 2018 of HK195,408,000, or USD $25,052,308; and exploring any investment opportunities.
Current Balance Sheet Highlights$65.3 million in working capital at June 30, 2018 compared to $71.7 million at December 31, 2017. Book value per share was $6.30 at June 30, 2018 compared to $7.62 at December 31, 2017.
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, 2019, 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.
Declaration of Special Dividend to Shareholders
Following receipt of a further payment of RMB124,380,000 (or approximately $18,052,250, at the conversion rate of 6.89 RMB for every US$1.0) end of May 2018 under the Agreement, the Company’s Board of Directors has declared a special cash dividend of US$2.50 per ordinary share. The special cash dividend will be paid on or about September 7, 2018 to shareholders of record as of August 31, 2018.
Mr. Kin Sun Sze-To, Chairman of the Company, stated, “We are pleased to have completed the construction and disposal of the manufacturing plant during the period, which was one of the key deliverables as we unwind our legacy business, and to pay this special dividend, which was generated from the achievement of the performance target by the disposed line of business for the year ended December 31, 2017. We continue to evaluate potential opportunities to leverage our strong capital position while also rewarding our shareholders.”
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.
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CONTACT: Plastec Technologies, Ltd.
HL Ning, Chief Financial Officer
The Equity Group Inc.
Adam Prior, Senior Vice President
Katherine Yao, Senior Associate
+86 10 6587 6435
KEYWORD: ASIA PACIFIC HONG KONG
INDUSTRY KEYWORD: MANUFACTURING CHEMICALS/PLASTICS OTHER MANUFACTURING PROFESSIONAL SERVICES BANKING FINANCE
SOURCE: Plastec Technologies, Ltd.
Copyright Business Wire 2018.
PUB: 08/17/2018 08:00 AM/DISC: 08/17/2018 08:01 AM