HONG KONG--(BUSINESS WIRE)--

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.

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