6-K 1 v351099_6k.htm FORM 6-K

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 


 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE

SECURITIES EXCHANGE ACT OF 1934

 

For the month of: August 2013

 

Commission File Number: 000-53826

 

PLASTEC TECHNOLOGIES, LTD.

(Translation of registrant’s name into English)

 

Unit 01, 21/F, Aitken Vanson Centre, 61 Hoi Yuen Road, Kwun Tong, Kowloon, Hong Kong

(Address of Principal Executive Offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F x  Form 40-F ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): _____

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): _____

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes ¨  No x

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-___________.

 

 
 

 

Unaudited Financial Statements

 

This Report of Foreign Private Issuer on Form 6-K by Plastec Technologies, Ltd. (“we, “us”, “our” or the “Company”) contains the Company’s unaudited financial results for its fiscal year 2013 first quarter ended March 31, 2013. A copy of the press release issued by the Company announcing such financial results is attached to this report as Exhibit 99.1.

 

Forward Looking Statement

 

This Report of Foreign Private Issuer on Form 6-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. These statements relate to future events or the Company’s future financial performance. The Company has attempted to identify forward-looking statements by terminology including “anticipates”, “believes”, “expects”, “can”, “continue”, “could”, “estimates”, “intends”, “may”, “plans”, “potential”, “predict”, “should” or “will” or the negative of these terms or other comparable terminology. These statements are only predictions, uncertainties and other factors may cause the Company’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. The information in this Report on Form 6-K is not intended to project future performance of the Company. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot and does not guarantee future results, levels of activity, performance or achievements. The Company’s expectations are as of the date this Report on Form 6-K is filed, and the Company does not intend to update any of the forward-looking statements after the date this Report on Form 6-K is filed to conform these statements to actual results, unless required by law.

 

The forward-looking statements included in this Report on Form 6-K are subject to risks, uncertainties and assumptions about our businesses and business environments. These statements reflect our current views with respect to future events and are not a guarantee of future performance. Actual results of our operations may differ materially from information contained in the forward-looking statements as a result of risk factors some of which include, among other things: continued compliance with government regulations; changing legislation or regulatory environments; requirements or changes affecting the business in which the Company is engaged; industry trends, including factors affecting supply and demand; labor and personnel relations; credit risks affecting the Company's revenue and profitability; changes in the plastic industry; the Company’s ability to effectively manage its growth, including implementing effective controls and procedures and attracting and retaining key management and personnel; changing interpretations of generally accepted accounting principles; general economic conditions; and other relevant risks detailed in the Company’s filings with the Securities and Exchange Commission.

 

 
 

 

PLASTEC TECHNOLOGIES, LTD.

 

CONSOLIDATED BALANCE SHEETS

(Hong Kong dollars in thousands, except number of shares, per share data and unless otherwise stated)

 

   (Unaudited)
March 31,
   (Audited)
December 31,
 
   2013   2012 
   HK$   HK$ 
         
ASSETS          
           
Current assets          
Cash and cash equivalents   282,347    309,862 
Trade receivables, net of allowances for doubtful accounts of HK$nil, and HK$nil as of December 31, 2012 and March 31, 2013 respectively   235,776    257,299 
Inventories   81,144    97,467 
Deposits, prepayment and other receivables   43,558    35,471 
Total current assets   642,825    700,099 
           
Property, plant and equipment, net   427,037    440,383 
Prepaid lease payments, net   23,331    23,719 
Other assets   12,192    14,503 
Intangible assets   438    438 
Total assets   1,105,823    1,179,142 
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
           
Current liabilities          
Bank borrowings   77,305    96,892 
Trade payables   124,083    151,436 
Other payables and accruals   88,927    115,715 
Tax payable   35,700    25,225 
Total current liabilities   326,015    389,268 
           
Deferred tax liabilities   11,629    11,629 
Total liabilities   337,644    400,897 
           
Commitments and contingencies   -    - 
           
Shareholders’ equity          
Ordinary shares (US$0.001 par value; 100,000,000 authorized 14,292,228 and 13,692,228 shares issued and outstanding as of December 31, 2012 and March 31, 2013 respectively)   107    112 
Additional paid-in capital   61,775    85,332 
Accumulated other comprehensive income   15,842    14,524 
Retained earnings   690,455    678,277 
Total shareholders’ equity   768,179    778,245 
           
Total liabilities and shareholders’ equity   1,105,823    1,179,142 

 

 
 

 

PLASTEC TECHNOLOGIES, LTD.

 

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)

(Hong Kong dollars in thousands, except number of shares, per share data and unless otherwise stated)

 

   For the 3-month
period ended March 31,
 
   2013   2012 
   HK$   HK$ 
         
Revenues   294,686    260,133 
Cost of revenues   (233,772)   (235,632)
Gross profit   60,914    24,501 
           
Operating expenses, net          
Selling, general and administrative expenses   (37,944)   (20,706)
Other income   86    587 
Gain/(loss) on disposal of property, plant and equipment   (67)   549 
Total operating expenses, net   (37,925)   (19,570)
           
Income from operations   22,989    4,931 
           
Interest income   51    45 
Interest expense   (388)   (660)
Income before income tax expense   22,652    4,316 
           
Income tax expense   (10,474)   (1,574)
Net income   12,178    2,742 
           
Other comprehensive income          
Foreign currency translation adjustment   1,318    119 
Comprehensive income attributable to Plastec Technologies, Ltd.   13,496    2,861 
           
Net income per share:          
           
Weighted average number of ordinary shares   13,785,561    15,028,884 
           
Weighted average number of diluted ordinary shares   13,785,561    15,028,884 
           
Basic income per share attributable to Plastec Technologies, Ltd.  HK$0.9   HK$0.2 
           
Diluted income per share attributable to Plastec Technologies, Ltd.  HK$0.9   HK$0.2 

 

 
 

 

PLASTEC TECHNOLOGIES, LTD.

 

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Unaudited)

(Hong Kong dollars in thousands, except number of shares, per share data and unless otherwise stated)

 

   Ordinary shares       Accumulated         
   Number of
shares
outstanding
   Amount   Additional
paid-in
capital
   other
comprehensive
income
   Retained
earnings
   Shareholders’
equity
 
       HK$   HK$   HK$   HK$   HK$ 
Balance at April 30, 2012 and at May 1, 2012   14,352,903    112    77,967    15,514    618,454    712,047 
                               
Net income for the year   -    -    -    -    59,823    59,823 
Share repurchases   (60,675)   -    (2,840)   -    -    (2,840)
Capital contribution   -    -    10,205    -    -    10,205 
Cumulative translation adjustment   -    -    -    (990)   -    (990)
Balance at December 31, 2012 and at January 1, 2013   14,292,228    112    85,332    14,524    678,277    778,245 
                               
Net income for the period   -    -    -    -    12,178    12,178 
Share repurchases   (600,000)   (5)   (28,075)   -    -    (28,080)
Capital contribution   -    -    4,518    -    -    4,518 
Cumulative translation adjustment   -    -    -    1,318    -    1,318 
Balance at March 31, 2013   13,692,228    107    61,775    15,842    690,455    768,179 

 

 
 

 

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 3-month
period ended March 31,
 
   2013   2012 
   HK$   HK$ 
Operating activities          
Net income   12,178    2,742 
Adjustments to reconcile net income to net cash provided by operating activities:          
Depreciation and amortization   32,217    39,764 
Loss/(gain) on disposal of property, plant and equipment   67    (549)
Changes in operating assets and liabilities:          
Trade receivables   21,523    (11,218)
Inventories   16,323    (486)
Deposits, prepayment and other receivables   (8,087)   (6,066)
Trade payables   (27,353)   (11,907)
Other payables and accruals   (26,788)   (6,477)
Tax payables   10,474    1,901 
Net cash provided by operating activities   30,554    7,704 
           
Investing activities          
Purchase of property, plant and equipment   (11,954)   (30,325)
Proceeds from disposal of property, plant and equipment   350    1,147 
Deposits for purchase of property, plant and equipment   (116)   (1,459)
Net cash used in investing activities   (11,720)   (30,637)
           
Financing activities          
Repurchases of shares   (28,080)   (181)
Net repayment of bank borrowings   (19,587)   (20,427)
Repayment of capital lease obligations   -    (1,112)
Net cash used in financing activities   (47,667)   (21,720)
           
           
Net decrease in cash and cash equivalents   (28,833)   (44,653)
           
Effect of exchange rate changes on cash and cash equivalents   1,318    110 
           
Cash and cash equivalents, beginning of period   309,862    187,072 
Cash and cash equivalents, end of period   282,347    142,529 
           
Supplementary disclosures of cash flow information:          
           
Interest paid, net   337    615 
Income taxes paid/(refunded)   -    (327)

 

 
 

 

Plastec Technologies, Ltd.

Management discussion and analysis

 

General

 

The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“USGAAP”). The preparation of financial statements in conformity with USGAAP requires management to make estimates and assumptions that reported amounts of assets and liabilities at the date of the financial statements and the amount of expenses reported during the period. Actual results could differ from those estimates. Unless otherwise indicated, all financial information presented in HK$ may be converted to US$ using the exchange rate of 7.8 HK$ for every 1 US$.

 

Results of Operations

 

Operating results for the first quarter ended March 31, 2013 compared to the three months ended March 31, 2012

 

Revenue for the first quarter ended March 31, 2013 increased by HK$34.6 million or 13.3% to HK$294.7 million compared to the corresponding period in the prior year, as a result of increased sales orders from existing customers for their new products launchings, and new sales orders solicited from new customers.

 

Cost of revenue for the first quarter ended March 31, 2013 decreased by HK$1.9 million or 0.8% to HK$233.8 million compared to the corresponding period in the prior year. This was mainly attributable to our efforts in further streamlining the manufacturing process and controlling direct wages and factory overheads, within the product mix requirements during the period.

 

Gross profit increased by HK$36.4 million or 148.6% to HK$60.9 million and gross profit margin, at the same time, increased to 20.7% from 9.4% accordingly, from the corresponding period in the prior year. In addition to our efforts in reducing costs of revenue, the improvement resulted from better margins for those new products launched by our customers compared to lower margins product mix in the corresponding period in the prior year due to the difficult economic environment during that time.

 

Total selling, general and administrative expenses increased by HK$17.2 million or 83.3% to HK$37.9 million compared to the corresponding period in the prior year mainly as a result of increased salary and allowances for management and administration staff during the period.

 

Income tax expenses increased by HK$8.9 million or 565.4% to HK$10.5 million compared to the corresponding period in the prior year. Starting from January 2013, all our manufacturing operations in the PRC are no longer under processing arrangements but conducted through our wholly foreign-owned enterprises subsidiaries in the PRC. As such, the effective tax rate for the first quarter ended March 31, 2013 increased to 46.2% compared to 36.5% in the corresponding period in the prior year.

 

We recorded net income after tax of HK$12.2 million in the first quarter ended March 31, 2013, compared to net income after tax of HK$2.7 million in the corresponding period in prior year, or increased by 344.1%.

 

Balance sheet positions as at March 31, 2013 compared to December 31, 2012

 

Total assets decreased by HK$73.3 million or 6.2% to HK$1,105.8 million as at March 31, 2013 from HK$1,179.1 million compared to the corresponding period in the prior year, which were mainly attributed to a HK$27.5 million decrease in cash and cash equivalents after the cash paid for share repurchased during the period, a HK$21.5 million decrease in trade receivables, a HK$16.3 million decrease in inventories, and a HK$13.3 million decrease in net book value of fixed assets.

 

 
 

 

Total liabilities decreased by HK$63.3 million or 15.8% to HK$337.6 million as at March 31, 2013 from HK$400.9 million compared to the corresponding period in the prior year, which were mainly attributed to a HK$27.4 million decrease in trade payables, a HK$26.8 million decrease in other payables and accruals, a HK$19.6 million decrease in bank borrowings, against a HKS10.5 million increase in tax payable.

 

Cashflow analysis

 

We have relied primarily upon internally generated funds and bank borrowings to finance our operations and expansion.

 

For the first quarter ended March 31, 2013, we recorded HK$28.8 million cash outflow as compared to HK$44.7 million cash outflow in the same corresponding period in the prior year. We generated HK$30.6 million cash inflow from operating activities as compared to HK$7.7 million cash inflow in the same corresponding period in the prior year. The increase was mainly offset by net cash used in financing activities of HK$47.7 million including HK$28.1 million used in share repurchases in January 2013 and HK$19.6 million for net repayment of bank borrowings during the period, while our net cash used in financing activities was HK$21.7 million mainly for net repayment of bank borrowings in the same corresponding period in the prior year. Net cash used in investing activities for this first quarter was HK$11.7 million for purchase of property, plant and equipment, compared to HK$30.6 million in the same corresponding period in the prior year which included the new buildings construction in our Shenzhen plant in the PRC.

 

Off-Balance Sheet Arrangements

 

The Company has not entered into any financial guarantees or other commitments to guarantee the payment obligations of third parties. The Company has not entered into any derivative contracts that are indexed to its shares and classified as shareholder’s equity or that are not reflected in its combined financial statements. Furthermore, the Company does not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. The Company does not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to it or that engages in leasing, hedging or research and development services with the Company. There are no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company’s financial condition, net sales or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to an investor.

 

 
 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  PLASTEC TECHNOLOGIES, LTD.
     
  By: /s/ Kin Sun Sze-To
  Name:  Kin Sun Sze-To
  Title: Chief Executive Officer

 

Dated: August 1, 2013