PLASTEC TECHNOLOGIES LTD (OTC:PLTYF)

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.”

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.

HONG KONG--(BUSINESS WIRE)--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.

Management Comments

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.”

HONG KONG--(BUSINESS WIRE)--

Plastec Technologies, Ltd. - (PLTYF), (the “Company”), today reported audited financial results for the fiscal 2017 year ended December 31, 2017. 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 conversion rates of US$1.0: HK$7.8 and US$1.0: RMB6.3, respectively.

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 Plastec International Holdings Limited (“Plastec”) or its integrated plastic manufacturing operations, all 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 is at the final stage and intended to be disposed of to SYB in the near future prior to its official operation at a price equivalent to the capital used for its construction, subject to terms and specifics to be agreed and finalized upon by the parties concerned;
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 arising.
Impact of Sale of Assets on the Company’s Latest Financial Statements

The disposal of Plastec represents a strategic shift and has 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, 2017, 2016 and 2015. The consolidated balance sheets as of December 31, 2015, the consolidated statements of operations and comprehensive income and the consolidated statements of cash flows for the years ended December 31, 2016 and 2015 have been adjusted retrospectively to reflect this strategic shift.

Confirmation of Plastec’s Achievement of Performance Target for the Year Ended December 31, 2017

SYB has confirmed and acknowledged that Plastec’s audited net profit (on a consolidated basis, after deducting noncurrent gains and losses) for the year ended December 31, 2017 was HK$183,124,000, which is in excess of the performance target for the year ended December 31, 2017, set at HK$177,088,000 in the Agreement, by HK$6,036,000, or approximately 3.4%.

Accordingly, the Company shall be paid a further sum of RMB124,380,000, or approximately $19,742,857, in due course and in accordance with the terms of the Agreement.

Current Balance Sheet Highlights

$71.7 million in working capital at December 31, 2017, compared to $78.3 million at December 31, 2016.
Book value per share was $7.62 at December 31, 2017, compared to $7.75 at December 31, 2016.
Declaration of Final 2017 Cash Dividend to Shareholders

The Company also announced today that its Board of Directors has declared a final 2017 cash dividend for the fiscal year ended December 31, 2017 of US$1.50 per ordinary share. The dividend will be payable on or about April 19, 2018 to shareholders of record as of April 12, 2018.

Including this final cash dividend for the fiscal year ended December 31, 2017, the Company has distributed approximately US$12.80 per ordinary share in dividends in aggregate as a measure of rewarding shareholders for their continued support since 2014.

Management Comments

Mr. Kin Sun Sze-To, Chairman of the Company, stated, “We continue to evaluate potential opportunities to leverage our strong capital position while also rewarding our shareholders as we unwind the legacy business. We are pleased to announce a final 2017 cash dividend for fiscal 2017, which is well justified by the achievement of the performance target by the disposed line of business for the same period.”

HONG KONG--(BUSINESS WIRE)--

Plastec Technologies, Ltd. - (PLTYF), (the Company), today reported unaudited financial results for the fiscal 2017 six-month period ended June 30, 2017. 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 Plastec International Holdings Limited (�Plastec�) or its integrated plastic manufacturing operations, all being disposed of to SYB.

The Company, as a holding company, is now focused on:

• completing the construction of its manufacturing plant in Kai Ping, China which is intended to be disposed of to SYB prior to its official operation at a price equivalent to the capital used for its construction, subject to terms and specifics to be agreed upon by the parties concerned in due course;
• 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 targets for the years ended December 31, 2017 and 2018 as described in the Agreement; and
• exploring other investment opportunities.

Current Balance Sheet Highlights

• $56.3 million in working capital at June 30, 2017, compared to $78.3 million at December 31, 2016.
• Book value per share was $6.23 at June 30, 2017, compared to $7.75 at December 31, 2016.

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, 2018, 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, �We continue to evaluate potential opportunities to leverage our strong capital position while also rewarding our shareholders as we unwind the legacy business. We were pleased to pay a special dividend during the period, which was generated from the achievement of performance targets by the disposed line of business for the year ended December 31, 2016.�

HONG KONG--(BUSINESS WIRE)--

Plastec Technologies, Ltd. (PLTYF) (the “Company”) today announced that it has received a further payment of RMB 113,250,000 (or approximately $16,678,940, at the conversion rate of 6.79 RMB for every $1) under its previously announced Share Transfer Agreement with Shanghai Yongli and that its Board of Directors has declared a special cash dividend of $1.50 per ordinary share. The special cash dividend will be payable on or about June 28, 2017 to shareholders of record as of June 21, 2017.

Mr. Kin Sun Sze-To, Chairman of the Company, stated, “We are pleased to pay this special dividend, which was generated from the achievement of performance targets for the year ended December 31, 2016. We understand the importance as management to operate as proper stewards of capital, and continue to evaluate potential investment opportunities while also returning additional capital to our loyal shareholders.”

HONG KONG--(BUSINESS WIRE)--Plastec Technologies, Ltd. - (OTCBB: PLTYF (ordinary shares), PLTEF (units)) (the “Company”) today announced the closing of its previously announced Share Transfer Agreement (“Agreement”) with Shanghai Yongli Belting Co., Ltd. (“SYB”) and its wholly-owned subsidiary, Shanghai Yongjing Investment Management Co., Ltd. (“SYIM”).

Transaction Background

On November 16, 2015, the Company announced that it had entered into the Agreement with SYB and SYIM, its wholly-owned subsidiary. Pursuant to the Agreement, SYIM was to purchase, through its wholly-owned Hong Kong subsidiary (the “HK Subsidiary”), the entirety of the Company’s shareholding interests in Plastec International Holdings Limited (“Plastec”) for an aggregate purchase price of RMB 1,250,000,000 (or approximately US$187,088,571), in cash (the “Transfer Price”).

Of the Transfer Price, RMB 875,000,000 (or US$130,962,000) was payable within 60 days after the China Securities Regulatory Commission (“CSRC”) approved of the Issuance (as defined in the Agreement) and SYB’s receipt of the funds raised through the Issuance, the latter of which was confirmed by SYB to have happened by July 29, 2016. Accordingly, payment of the initial portion of the Transfer Price was made on September 21, 2016.

On October 11, 2016, the parties consummated the transactions contemplated by the Agreement after the fulfillment of certain other conditions. As a result, the Company no longer owns Plastec or its integrated plastic manufacturing operations.

Declaration of Special Dividend to Shareholders

In connection with the Agreement and following receipt of the initial portion of the Transfer Price, the Company’s Board of Directors has declared a special cash dividend of US$8.00 on each outstanding ordinary share. The special cash dividend will be paid on or about November 1, 2016 to shareholders of record as of October 25, 2016.

Not including this special cash dividend, the Company has distributed approximately US$1.80 per ordinary share in dividends in aggregate as a measure of rewarding shareholders for their continued support since 2014.

HONG KONG--(BUSINESS WIRE)--

Plastec Technologies, Ltd. - (OTCBB: PLTYF (ordinary shares), PLTEF (units)) (the �Company�), an integrated plastic manufacturing services provider that operates in the People�s Republic of China and Thailand, today reported audited financial results for the fiscal 2015 year ended December 31, 2015. The Company also announced that its Board of Directors has declared a final cash dividend for the fiscal year ended December 31, 2015 of $0.20 per ordinary share. The dividend will be payable on or about April 12, 2016 to shareholders of record as of April 05, 2016. 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.

Fiscal 2015 Financial and Operating Highlights
(all comparisons to prior year)

• Sales of $166.5 million, an increase of 7.5% compared to $154.8 million
• Gross margin of 25.6%, compared to 25.0%
• Adjusted EBITDA of $32.4 million, compared to $33.1 million
• Net income of $16.8 million, or $1.30 per diluted share based on 12.9 million diluted shares outstanding, compared to $21.5 million, or $1.67 per diluted share based on 12.9 million diluted shares outstanding
• $31.0 million in cash generated from operations for the year ended December 31, 2015, compared to $32.8 million

Balance Sheet Highlights

• $73.4 million in working capital at December 31, 2015, compared to $82.5 million at December 31, 2014
• Book value per share increased to $9.32 at December 31, 2015, compared to $9.25 at December 31, 2014

Dividends Distribution

• In May 2015, the Company�s Board of Directors declared a special one-time cash dividend of $0.90 on each outstanding ordinary share. The special cash dividend was paid on or about June 02, 2015 to shareholders of record as of May 26, 2015.
• In August 2015, the Company�s Board of Directors declared an interim cash dividend of $0.10 per ordinary share for the fiscal 2015-second quarter ended June 30, 2015. The interim cash dividend was paid on or about August 27, 2015 to shareholders of record as of August 20, 2015.
• The Company also announced today that its Board of Directors has declared a final cash dividend for the fiscal year ended December 31, 2015 of $0.20 per ordinary share. The dividend will be payable on or about April 12, 2016 to shareholders of record as of April 05, 2016.

Update on Share Transfer Agreement

In December 2015, the Company�s shareholders voted to approve the previously announced Share Transfer Agreement with Shanghai Yongli Belting Co., Ltd. (�SYB�) and its wholly-owned subsidiary, Shanghai Yongjing Investment Management Co., Ltd. (�SYIM�), pursuant to which SYIM will purchase, through a to-be-formed wholly-owned Hong Kong subsidiary, the entirety of the Company�s shareholding interests in its wholly-owned subsidiary, Plastec International Holdings Limited.

Closing is expected in 2016 and is contingent on certain closing conditions including SYB�s receipt of external financing.

Management Comments

Mr. Kin Sun Sze-To, Chairman of Plastec, stated, �In 2015, we achieved incremental margin expansion in light of a challenging macro environment in the consumer products sector and maintained strong cash flows throughout the year. We were pleased that Plastec increased margins throughout our market segments by capturing more first-run product lines from our long-term customers. The Company successfully improved effective capacity in both its China and Thailand facilities while maintaining a low-cost infrastructure. We believe that our strong financial condition has and will continue to benefit the Company, as many of our lesser capitalized competitors were not able to consistently upgrade their facilities at a regular pace. Plastec continued to utilize its cash flow to reinvest in our business throughout 2015, and we feel this has the Company positioned well in the coming year.�

Chairman Sze-To continued, �We were pleased to announce a final cash dividend for fiscal 2015, which is a continuation of our capital management strategy. During 2015, we returned $15.5 million in distributions to shareholders as a reward for their support in light of another strong year of cash generation at Plastec. We also continue to progress on the sale of our plastic injection molding business to SYB. We were pleased to have reached a favorable valuation for the business. We expect the transaction process to continue throughout 2016 and will keep investors apprised of its progress.�

HONG KONG--(BUSINESS WIRE)--Plastec Technologies, Ltd. - (OTCBB:PLTYF (ordinary shares), PLTEF (units)) (the �Company�), an integrated plastic manufacturing services provider that operates in the People�s Republic of China and Thailand, today announced that during an extraordinary general meeting held earlier today, the Company�s shareholders voted to approve the previously announced Share Transfer Agreement with Shanghai Yongli Belting Co., Ltd. (�SYB�) and its wholly-owned subsidiary, Shanghai Yongjing Investment Management Co., Ltd. (�SYIM�), pursuant to which SYIM will purchase, through a to-be-formed wholly-owned Hong Kong subsidiary, the entirety of the Company�s shareholding interests in its wholly-owned subsidiary, Plastec International Holdings Limited.

Closing is expected in 2016 and is contingent on certain closing conditions including SYB�s receipt of external financing.

Third Quarter 2015 Financial Results

• Sales of $46.2 million, an increase of 5.1% compared to $44.0 million
• Net income of $6.5 million, or $0.50 per diluted share, compared to $4.3 million, or $0.33 per diluted share (both periods based on 12.9 million weighted average number of diluted ordinary shares)

Management Comments

Mr. Kin Sun Sze-To, Chairman of the Company, stated, �Our results for the third quarter were indicative of our ability to generate steady earnings growth by focusing on higher margin orders that leverage our dedication and expertise in mold design and fabrication. Our integrated manufacturing ability and just in time delivery from our manufacturing facilities in Guangdong and Jiangsu Province, China as well as in Bangkok of Thailand, allows our customers to focus on other aspects of the production and marketing of their products. This has allowed us to successfully establish and maintain long-term business relationships with many of our customers. Most of our major customers have been doing business with us for more than five years and some of them for over 10 years. We feel that the nature of our industry creates a natural barrier, as a vendor qualification process typically takes 6 to 18 months in the plastics industry for precision plastic manufacturing services. This is the principal reason that we devote time and resources to the support of our long-term clients. During the period, these clients continued to be the principal driver of our sales, with many selling follow-up orders of higher-margin products. We were pleased to report a strong operating period and look forward to keeping investors apprised of our progress.�

HONG KONG--(BUSINESS WIRE)--Plastec Technologies, Ltd. - (OTCBB: PLTYF (ordinary shares), PLTEF (units)) (the Company), an integrated plastic manufacturing services provider that operates in the People's Republic of China and Thailand, today announced that it has signed a share transfer agreement with Shanghai Yongli Belting Co., Ltd. (SYB) and its wholly-owned subsidiary, Shanghai Yongjing Investment Management Co., Ltd. (SYIM). Pursuant to the Agreement, SYIM will purchase, through a to-be-formed wholly-owned Hong Kong subsidiary (the HK Subsidiary), the entirety of the Company�s shareholding interests in its wholly-owned subsidiary, Plastec International Holdings Limited (�Plastec�). Unless otherwise indicated, all financial information presented in RMB may be converted to U.S. dollar ($) using the exchange rate of RMB 6.4 for every $1.

Highlights of the Proposed Agreement

• Purchase price of up to RMB 1,250,000,000 ($195,312,500), or approximately $15.10 per diluted share based on 12,938,128 weighted average number of diluted ordinary shares outstanding at September 30, 2015.
• Upon closing, the Company will no longer own Plastec or its plastic manufacturing operations.
• Thereafter, the Company�s operations will largely be to explore other investment opportunities.
• The proceeds from the transaction will be received by the Company, not the Company's shareholders. The Company will use a portion of the proceeds to pay for transaction costs associated with the transaction and for general working capital purposes. The remaining proceeds from the transaction may be used, at the sole discretion of the Company�s Board, to provide liquidity to the Company's shareholders through one or more interim dividends.
• Prior to execution of the agreement and assisted by independent legal counsel and independent financial advisor, a Special Committee composed of independent members of the Company�s Board of Directors was established to review the transaction.
• Duff & Phelps LLC, independent financial advisor and investment banking firm, provided an opinion as to the fairness, from a financial point of view, to the public shareholders of the Company.
• Closing is expected in 2016 and is contingent on certain closing conditions including SYB's receipt of external financing and the Company�s shareholder approving the transaction.

Management Comments

Mr. Kin Sun Sze-To, Chairman of Plastec, stated, "We are pleased to have reached an agreement at a fair valuation for our plastic injection molding business, and believe that SYB is the right partner to further grow the business with a diversified portfolio. Since our public listing in the U.S., we have encountered liquidity issues surrounding our share price and felt that it was in the best interest of our shareholders to seek alternative means to realize value in our enterprise. We believe that this transaction will enhance the value of our shareholder's holdings in the Company. We intend for the transaction process to continue throughout 2016 and will keep investors apprised of our progress."

The transaction is expected to be consummated (the �Closing�) after the required approval by the Company�s shareholders and the fulfillment of certain other conditions, as described herein and in the Agreement.

Transaction Details

Under the Agreement, SYIM will purchase, through the HK Subsidiary, from the Company the entirety of its shareholding interests in Plastec (the Target Share) for an aggregate purchase price of RMB 1,250,000,000 (or $195,312,500), in cash (the Transfer Price).

Of the Transfer Price, RMB 875,000,000 ($136,718,750) is payable within 60 days after the China Securities Regulatory Commission approves the Private Placement (defined below). The remaining RMB 375,000,000 (or $58,593,750) of the Transfer Price (the �Remaining Amount�) shall be deposited into a bank account designated solely for the purpose of the transaction, supervised and administered by SYB and the Company jointly, and shall be payable to the Company upon Plastec achieving net profit performance targets for the years ended December 31, 2016, 2017 and 2018.

To finance the Transfer Price, SYB, the shares of which are listed and traded on the ChiNext Board of Shenzhen Stock Exchange, intends to raise funds of no less than RMB 1,250,000,000 through a private placement (the Private Placement), which it will subsequently contribute to the capital of the HK Subsidiary to be utilized by the HK Subsidiary for the purchase.

The proceeds from the transaction will be received by the Company, not the Company's shareholders. The Company will use a portion of the proceeds to pay for transaction costs associated with the transaction and for general working capital purposes. The remaining proceeds from the transaction may be used, at the sole discretion of the Company�s Board, to provide liquidity to the Company's shareholders through one or more interim dividends.

It is anticipated that the first tranche of net proceeds from the transaction to the Company will be an aggregate of approximately RMB 770,000,000 (or $120,312,500), or RMB 59.5 (or approximately $9.30) per outstanding ordinary share of the Company.

Additional Details Surrounding the Transaction

The Company has included additional details surrounding this transaction in its Form 6-K filing with the Securities and Exchange Commission.

HONG KONG--(BUSINESS WIRE)--Plastec Technologies, Ltd. - (OTCBB: PLTYF (ordinary shares), PLTWF (warrants), PLTEF (units)) (“Plastec” or the “Company”), an integrated plastic manufacturing services provider that operates in the People’s Republic of China, today announced that the Company has completed its previously announced repurchase plan of up to $5 million of its ordinary shares and warrants, which was subject to expire on December 9, 2013. At the completion of the plan, Plastec had repurchased 832,765 shares and 85,000 warrants thereunder.

The Company also announced today a new 12-month repurchase plan through September 25, 2014, allowing Plastec to purchase up to $5 million of its ordinary shares and warrants in both open market and privately negotiated transactions at the discretion of the Company’s management and as market conditions allow. The Company reported unaudited cash and cash equivalents at June 30, 2013 of $38.2 million and does not expect this repurchase plan to impede any of its growth initiatives.

The Company intends to effect the open market repurchases at prevailing market prices in compliance with the Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The timing and actual number of shares and/or warrants purchased will depend on a variety of factors such as price, corporate and regulatory requirements, and other prevailing market conditions. The plan will continue through September 25, 2014, but may be modified, suspended, or terminated without prior notice.

Mr. Kin Sun Sze-To, Chairman and CEO of Plastec, commented, "We continue to feel the current valuation of our share and warrant prices remain a strong investment and prudent use of our free cash flow, while not acting as an impediment to our growth. The new repurchase program will continue to give us the flexibility to repurchase our shares and warrants as and when market conditions are optimal."

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Second Quarter  2013 Financial Results

• Sales of $38.5 million, a decrease of 15.0% as a result of a reduction in lower margin product orders from existing customers
• Gross margin of 25.5%, compared to 11.2%, resulting primarily from streamlining of production costs during period and a more favorable product mix
• Adjusted EBITDA of $8.6 million, compared to $7.2 million
• Net income of $5.7 million, or $0.42 per diluted share based on 13.7 million diluted shares outstanding, compared to $1.8 million, or $0.13 per diluted share based on 14.3 million diluted shares outstanding

Management Comments

Mr. Kin Sun Sze-To, Chairman of Plastec, stated, �Plastec had another good quarter and a strong first half of 2013. Despite operating in a slow growth macro environment, we saw solid margin expansion due to streamlining of our production costs and focus on higher margin product orders from our customers. Although our total orders were down compared to the prior year, the Company improved its gross margin, operating income, and overall profitability during the period. I believe our entire organization has done a great job in terms of driving productivity in what continues to be a low growth environment.�

Mr. Sze-To continued, �Our outlook for the rest of the year remains unchanged from the end of the first quarter. Macro indicators are increasingly mixed, which makes predicting the timing of our customer orders more difficult. However, we continue to focus on balancing cost and growth and increasing customer satisfaction. We have been pleased with our low default rate and feel this is a primary driver of customer retention throughout our history. We also remain confident that our business will continue to provide us with profitable growth opportunities in other markets where our precision molding service would provide a solid value proposition for new customers.�

First Quarter 2013 Results

• The Company’s total sales for the three months ended July 31, 2012 decreased 6.7% to $46.0 million from $49.3 million in the prior-year period as a result of the economic slowdown mentioned above.
• The Company’s gross profit margin for the three months ended July 31, 2012 was 10.6%, compared to 15.5% in the prior-year period.
• EBITDA for the three months ended July 31, 2012, was $7.1 million, compared to $10.1 million in the prior-year period.
• Net income for the three months ended July 31, 2012 was $2.1 million, or $0.14 per share based on a weighted average number of diluted shares outstanding of 14.5 million, compared to $3.6 million, or $0.21 per share based on 16.7 million weighted average number of diluted shares, in the prior-year period.

Mr. Kin Sun Sze-To, Chairman of Plastec, stated, “For the first three months of fiscal year of 2013, our top line was affected by stagnant market conditions and reduced orders from existing customers. The floods in Thailand delayed a number of new potential product launches, which is where we generate the predominant portion of our gross margin. We believe this has caused a number of manufacturers to focus their attention on the 2012 holiday season for new launches. Our financial position remains very strong with approximately $27.8 million in cash as of July 31, 2012.”

Share Repurchase Update 

In June 2012, the Company approved a six-month extension of its previously announced share repurchase plan, allowing Plastec to purchase up to $5 million of its ordinary shares in both open market and privately negotiated transactions at the discretion of the Company’s management and as market conditions allow. To date, the Company has repurchased 64,675 shares under its repurchase plan.

The Company also announced today that it will expand the scope of the repurchase plan to include Plastec’s publicly-held warrants (under ticker “PLTWF”), with all other terms of the repurchase plan remaining unchanged.

Third Quarter Results:

• Record sales of $42.0 million, an increase of 42.8% year over year
• Gross margin of 19.9% compared to 16.1%
• EBITDA of $10.4 million, up 54.4% year over year
• Net income of $5.6 million, or $0.69 per diluted share

Mr. Kin Sun Sze-To, Chairman of Plastec, stated, "We are very pleased with our growth during the quarter. We have continued to benefit from our existing long-term customer relationships, particularly with one company in the educational toy business that launched a new, highly specialized plastic toy in January 2011. Plastec was the manufacturer for this complicated, "first run" product line. A number of these customers have indicated their optimistic forecast for coming years, and we have benefitted by providing our high-quality precision plastic molding services for these new product lines. Despite a number of our competitors having struggled in recent years due to a difficult global economic environment, we have remained profitable. Our financial position is very strong, with approximately $28.3 million in cash as of January 31, 2011, and a continued record of generating free cash flow while still regularly investing in our business."

On August 9, 2010 GSME Acquisition Partners I and privately-held Plastec International Holdings Limited jointly announced that the companies have entered into a merger agreement whereby GSME will issue 7.3 million ordinary shares and Plastec will become a wholly owned subsidiary of GSME, subject to GSME shareholder approval.

Plastec Company Snapshot:

Plastic injection molding and finishing business. Injection molding is a design and manufacturing process in which plastic resins are transformed into the templates used in the mass production of items such as consumer electronics, home appliances, and telecommunications equipment.

Details of proposed merger:

• After the closing, GSME is expected to have approximately 11.2 million basic shares outstanding, based on a share price of $10.00 (not taking into account any conversions into cash by GSME shareholders or purchases of GSME shares in connection with the GSME shareholder meeting).
  
• 3.6 million warrants with a strike price of $11.50 (Symbol GSMWF).
  
• GSME and Plastec have indicated that following consummation of the Merger, GSME intends to declare regular annual cash dividends equal to 30% of Plastec’s yearly Net Income. However, the actual payment of such future dividends will be entirely within the sole discretion of GSME’s board of directors at such times and will be dependent upon the combined company’s revenues and earnings, capital requirements and general financial condition.
  
• Financial incentive targets exist.

Financial Snapshot: Unaudited Financial Results for FY ended April 30th

• Revenue and net income doubled from FY 2005 to FY 2008.
  
• Despite difficult market conditions in the global electronics industry, FY 2010 year-over-year revenues increased 5.8% to $123.9 million.
  
• FY 2010 adjusted net income of $11.3 million.
   
• FY 2010 EBITDA up 8.9% to $27.6 million  to contemporaneously cancel such preferred shares upon their release.