6-K 1 v323514_6k.htm 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: September 2012

 

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 ¨  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 ¨

 

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. (the “Company”) contains the Company’s unaudited financial results for its fiscal year 2013 first quarter ended July 31, 2012.   A copy of the press release issued by the Company announcing such financial results is attached to this report as Exhibit 99.1.

 

Change in Fiscal Year End

 

On September 11, 2012, the Company determined to change its fiscal year end from April 30 to December 31. The change in fiscal year end was made so that the Company’s fiscal year end would coincide with all the Company’s operating subsidiaries in the People’s Republic of China. The Company will file a transition report on Form 20-F within four months after December 31, 2012 to cover the transition period from May 1, 2012 to December 31, 2012 in order to reflect this change.

 

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 and 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 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 confirm 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 the Company’s businesses and business environments. These statements reflect the Company’s current views with respect to future events and are not a guarantee of future performance. Actual results of the Company’s 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)

   As of   As of 
   July 31, 2012   April 30, 2012 
   HK$   HK$ 
   (Unaudited)   (Audited) 
ASSETS          
Current assets          
Cash and cash equivalents   216,944    199,818 
Trade receivables, less allowance for doubtful amounts of HK$nil and HK$nil as of July
31 & April 30, 2012 respectively
   319,602    282,869 
Inventories   114,130    128,387 
Deposits, prepayment and other receivables   20,831    20,514 
Total current assets   671,507    631,588 
           
Property, plant and equipment   503,060    524,137 
Prepaid lease payments   24,365    24,753 
Other assets   11,836    12,813 
Intangible assets   438    438 
Total assets   1,211,206    1,193,729 
           
LIABILITIES AND EQUITY          
Current liabilities          
Bank borrowings   144,947    156,866 
Capital lease obligations   89    303 
Trade payables   121,233    121,964 
Other payables and accruals   131,379    115,109 
Tax payable   74,162    72,936 
Total current liabilities   471,810    467,178 
           
Deferred tax liabilities   14,504    14,504 
Total liabilities   486,314    481,682 
           
Commitments and contingencies   -    - 
           
Shareholders' equity          
Preferred shares (US$0.001 par value; 1,000,000 share authorized, none issued and outstanding)   -    - 
Ordinary shares (US$0.001 par value; 100,000,000 shares authorized, 14,292,228 and 14,352,903
shares issued and outstanding as of July 31, 2012 and April 30, 2012, respectively)
   111    112 
Additional paid-in capital   75,128    77,967 
Accumulated other comprehensive income   15,114    15,514 
Retained earnings   634,539    618,454 
Total Plastec Technologies, Ltd. Shareholders' equity   724,892    712,047 
         
Total liabilities and shareholders' equity   1,211,206    1,193,729 

 

 

 
 

 

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 months ended 
   July 31, 
   2012   2011 
   HK$   HK$ 
           
Revenues   358,827    384,651 
Cost of revenues   (320,751)   (324,982)
Gross profit   38,076    59,669 
           
Operating expenses          
Selling, general and administrative expenses   (21,524)   (19,828)
Other income   1,303    353 
(Loss) /gain on disposals of property, plant and equipment   (51)   76 
Total operating expenses, net   (20,272)   (19,399)
           
Income from operations   17,804    40,270 
           
Interest income   55    51 
Interest expense   (549)   (722)
Income before income tax expense   17,310    39,599 
           
Income tax expense   (1,225)   (11,903)
Net income   16,085    27,696 
           
Other comprehensive income          
Foreign currency translation adjustment   (400)   7,138 
Comprehensive income attributable to Plastec Technologies, Ltd.   15,685    34,834 
           
Weighted average number of ordinary shares   14,490,333    16,733,196 
Weighted average number of diluted ordinary shares   14,490,333    16,733,196 
           
Basic earnings per share attributable to Plastec Technologies, Ltd.  HK$        1.1    HK$            1.6 
Diluted earnings per share attributable to Plastec Technologies, Ltd.  HK$            1.1    HK$            1.6 
           

 

 

 
 

 

 

 

PLASTEC TECHNOLOGIES, LTD.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

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

 

   Ordinary Shares                 
   Number of Shares Outstanding   Amount   Additional Paid-in Capital   Accumulated Other Comprehensive Income   Retained Earnings   Total Equity 
         HK$    HK$    HK$    HK$    HK$ 
                               
Balance at April 30, 2011   16,733,196    131    169,973    8,106    568,050    746,260 
                               
Net income for the period   -    -    -    -    50,404    50,404 
Share repurchases   (1,574,000)   (13)   (92,012)   -    -    (92,025)
Share redeemed and
cancelled
   (806,293)   (6)   6    -    -    - 
Cumulative translation
adjustment
   -    -    -    7,408    -    7,408 
                               
Balance at April 30, 2012   14,352,903    112    77,967    15,514    618,454    712,047 
                               
Net income for the period   -    -    -    -    16,085    16,085 
Share repurchases   (60,675)   (1)   (2,839)   -    -    (2,840)
Cumulative translation
adjustment
   -    -    -    (400)   -    (400)
                               
Balance at July 31, 2012   14,292,228    111    75,128    15,114    634,539    724,892 

 

 

 

 

 
 

  

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 months ended 
   July 31, 
   2012   2011 
   HK$   HK$ 
           
Operating activities          
Net income after taxation   16,085    27,696 
Adjustments to reconcile net income to net cash provided by operating activities          
Depreciation and amortization   38,691    38,824 
Net gain on disposal of property, plant and equipment   (51)   (76)
Deferred tax charge   -    (652)
Change in operating assts and liabilities:          
Trade receivables   (36,734)   (69,339)
Inventories   14,257    (371)
Deposits, prepayment and other receivables   (316)   (239)
Trade payables   (731)   11,527 
Other payables and accruals   16,272    18,113 
Tax payables   1,225    12,555 
           
Net cash provided by operating activities   48,698    38,038 
           
Investing activities          
Purchase of property, plant and equipment   (7,141)   (31,230)
Proceeds from disposal of property, plant and equipment   2,779    1,462 
Deposits for purchase of property, plant and equipment   (11,837)   (9,652)
           
Net cash used in investing activities   (16,199)   (39,420)
           
Financing activities          
Repurchases of shares   (2,840)   - 
Proceeds from bank borrowings   83,727    97,547 
Repayment of bank borrowings   (95,646)   (90,404)
Repayment of capital lease obligations   (214)   - 
           
Net cash provided by/(used in) financing activities   (14,973)   7,143 
           
Effect of exchange rate changes on cash and cash equivalents   (400)   7,071 
           
Net increase in cash and cash equivalents   17,526    5,761 
Cash and cash equivalents, beginning of period   199,818    219,757 
Cash and cash equivalents, end of period   216,944    232,589 
           
Supplementary          
           
Interest paid   494    671 
Income tax paid   -    - 

 

 
 

 

 

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 affect the 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 U.S.$ using the exchange rate of 7.8 HK$ for every 1 U.S.$.

 

Results of Operations

 

Operating results for the three months ended July 31, 2012 compared to the three months ended July 31, 2011

 

Revenue for the three months ended July 31, 2012 decreased by HK$25.8 million or 6.7% to HK$358.8 million compared to the corresponding period in the prior year due to decreased sales to some of the major customers as a result of their delayed new products launching.

 

Cost of revenue for the three months ended July 31, 2012 decreased correspondingly by HK$4.2 million or 1.3% to HK$320.8 million compared to the corresponding period in the prior year.  The corresponding decrease in cost of revenue were mainly due to the increased cost of labor in China, factory overheads, as well as thinner margin with less new products launched and ordered by the customers.

 

Gross profit decreased by HK$21.6 million or 36.2% to HK$38.1 million for the three months ended July 31, 2012 while the gross profit margin decreased to 10.6% from 15.5% correspondingly.

 

Total selling, general and administrative expenses increased by HK$1.7 million or 8.6% to HK$21.5 million for the three months ended July 31, 2012, mainly as a result of increased selling and distribution costs. Income before income tax expense decreased by HK$22.3 million or 56.3% to HK$17.3 million for the three months ended July 31, 2012.

 

Because of the decreased income, income tax expenses decreased by HK$10.7 million to HK$1.2 million.  

 

The Company recorded net income after tax of HK$16.1 million in the three months ended July 31, 2012, compared to a profit of HK$27.7 million in the corresponding period in the prior year, or a decrease of 41.9%.

 

Balance sheet positions as at July 31, 2012 compared to April 30, 2012

 

Total assets increased by HK$17.5 million or 1.5% to HK$1,211.2 million as at July 31, 2012 from HK$1,193.7 million as at April 30, 2012, which increase was mainly attributed to a HK$36.7 million increase in trade receivables and a HK$17.1 million increase in cash and cash equivalents, against a HK$21.1 million decrease in fixed assets and a HK$14.3 million decrease in inventories.

 

 
 

 

 

Total liabilities increased by HK$4.6 million or 1.0% to HK$486.3 million as at July 31, 2012 from HK$481.7 million as at April 30, 2012, which increase was mainly attributed to a HK$16.3 million increase in other payables and accruals, against a HK$12.1 million decrease in bank borrowing and capital lease obligations.

 

Cashflow analysis

 

The Company has relied primarily upon internally generated funds and bank borrowings to finance its operations and expansion.

 

For the three months ended July 31, 2012, the Company had generated HK$17.5 million cash inflow as compared to HK$5.8 million cash inflow in the same corresponding period in the prior fiscal year.  The increases in the three months ended July 31, 2012 were mainly attributed to net cash provided by operating activities of HK$48.7 million, offsetting net cash used in investing activities of HK$16.2 million for the purchase of property, plant and equipment, and net cash used in repayment of bank borrowings and capital lease obligations of HK$12.1 million and share repurchases of HK$2.8 million.

 

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: September 11, 2012