PLTYF Plastec Technologies Ltd (PK)

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 of Foreign Private Issuer 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 of Foreign Private Issuer 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 of Foreign Private Issuer 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 of Foreign Private Issuer 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 detailed in the Company’s filings with the Securities and Exchange Commission.

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$.

Operating results for the six months ended June 30, 2021 compared to the six months ended June 30, 2020

We did not record any operating income during the six months ended June 30, 2021 or 2020. We were maintaining minimal daily operations and keeping a progressive reduction in all expenses. As a result, our selling, general and administrative expenses for the six months ended June 30, 2021 decreased by approximately HK$0.6 million to approximately HK$1.0 million from approximately HK$1.6 million in the six months ended June 30, 2020.

Balance sheet positions as at June 30, 2021 compared to December 31, 2020

Total assets decreased by approximately HK$1.6 million to approximately HK$184.0 million as of June 30, 2021 compared to approximately HK$185.6 million as of December 31, 2020. This decrease was mainly attributable to the reduction of approximately HK$2.0 million cash and cash equivalents during the period.

Total liabilities decreased by approximately HK$0.3 million to approximately HK$11.5 million as of June 30, 2021 compared to approximately HK$11.8 million as of December 31, 2020.

Cashflow analysis

We have relied primarily upon internally generated funds to finance our minimal operations.

For the six months ended June 30, 2021, we recorded approximately HK$2.0 million cash outflow as compared to approximately HK$1.8 million cash outflow in the same corresponding period in the prior year. The increase was mainly attributable to the increased net loss for approximately HK$0.3 million during the period.

Net cash provided by investing activities for the six months ended June 30, 2021 was nil as compared to approximately HK$27,000 cash inflow in the corresponding period in the prior year, being receipts of the net proceeds derived from the disposals of subsidiaries.

We did not engage in any financing activities, much less any net cash used, during the six months ended June 30, 2021 or 2020.

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.