TAIPEI, Taiwan, September 25, 2023 (GLOBE NEWSWIRE) -- Asia Pacific Wire & Cable Corporation Limited (NASDAQ: APWC) ("APWC" or the "Company"), a leading manufacturer of wire and cable products for the telecommunications and electric-power industries in the Asia-Pacific region, today announced the Company's financial results for the six months ended June 30, 2023. Unless otherwise indicated, all data are reported in U.S. Dollars at the exchange rate prevailing on the date of the event or result reported.

Revenues for the six months ended June 30, 2023 were $193.5 million, a decrease of 6.7% from $207.4 million for the six months ended June 30, 2022. The decrease was primarily attributable to revenue decreases across the Company’s Thailand and North Asia regions. Net revenue in the Company’s Thailand region decreased 15.0%, attributable to the global economic slowdown, public sector budget decreases, the depreciation of the Thai Baht, which depreciated 1.44% compared to 2022 and the 10.8% drop in the average copper price. Revenues in the Company's North Asia region decreased 28.5%, due to decreased sales volume, resulting primarily from the ongoing Sino-American trade war, which has impacted the global economy. Revenues in the Company's Rest of World (“ROW”) region increased 14.7% due to strong construction activity in Australia, and the completion of public sector projects in Singapore. The Company's North Asia region includes China, Hong Kong and Taiwan; the Thailand region consists of operations and sales within Thailand; the ROW region includes Singapore, Australia and the other markets where APWC has operations or sales outside of the Thailand region and North Asia region.

Operating loss for the six months ended June 30, 2023 was $(2.8 million), a decrease of 255.6% from an operating profit of $1.8 million for the six months ended June 30, 2022. Operating profit margin decreased from a profit of 0.9% in 2022 to a loss of (1.4%) in 2023. In the Thailand region, the operating profit margin decreased from 1.19% in 2022 to (7.87%) in 2023. The operating profit fell following a decline in higher-margin Thai government projects and the fluctuation of copper prices. In the North Asia region, the operating profit margin increased from 2.31% in 2022 to 7.08% in 2023, resulting from the reversal of the provision for employee benefits and pension expenses. The ROW region’s operating profit margin increased from 0.49% in 2022 to 2.11% in 2023 due to the increase in sales volumes.

Selling, general and administrative expenses for the six months ended June 30, 2023 were $11 million, compared to $12.6 million reported for the six months ended June 30, 2022. Net profit attributable to APWC shareholders was $0.02 million for the first half of 2023, compared to a net loss of $(0.3) million for the first half of 2022. The increase in net profit was primarily due to a decrease in selling, general and administrative expenses. The weighted average number of shares issued and outstanding was 20.62 million and 20.02 million for the six months ended June 30, 2023 and 2022, respectively.

Financial Condition
 

APWC reported $39.0 million in cash and cash equivalents as of June 30, 2023, compared to cash and cash equivalents of $54.0 million as of December 31, 2022.

Current assets totaled $274.2 million as of June 30, 2023, compared to $299.5 million as of December 31, 2022. Working capital was $148.8 million as of June 30, 2023. Short-term bank loans were $46.8 million at June 30, 2023, an increase of 2.7% from $45.6 million at December 31, 2022. The Company had $3.0 million in long-term debt outstanding at June 30, 2023, compared to $12.2 million in long-term debt as of December 31, 2022. Shareholder's equity attributable to APWC was $147.5 million as of June 30, 2023, compared to $151.6 million as of December 31, 2022.

APWC reported $3.5 million in cash used in operating activities during the six months ended June 30, 2023, compared to cash used in operating activities of $2.9 million in the corresponding period in 2022. The increase in cash used in operating activities in the first half of 2023 was primarily attributable to the decrease in sales and the repayment of trade payables. The Company reported $2.8 million in cash outflows from investing activities during the six months ended June 30, 2023, compared to $0.7 million in cash outflows in the same period of 2022. The increase in cash used in investing activities in the first half of 2023 was attributable primarily to the increase in purchases of property, plant and equipment and short-term bank deposit in 2023. APWC reported $7.4 million in cash outflows from financing activities during the first six months of 2023, compared to $8.7 million in cash inflows from financing activities in the same period of 2022. The decrease in cash inflows is due to a decrease in borrowings in 2023.

We encourage shareholders to visit the Company's website for further information (www.apwcc.com). Information on the Company's website or any other website does not constitute a portion of this release.

About Asia Pacific Wire & Cable Corporation Limited

Asia Pacific Wire & Cable Corporation Limited is a holding company incorporated in Bermuda with principal executive offices in Taiwan that operates its business through operating subsidiaries. Through its subsidiaries, the Company is principally engaged in the manufacture and distribution of enameled wire, power cable, and telecommunications products in Thailand, Singapore, Australia, the People’s Republic of China, Hong Kong and certain other markets in the Asia Pacific region. The Company also engages in the distribution of certain wire and cable products manufactured by its controlling shareholder, Pacific Electric Wire & Cable Co., Ltd., and certain third parties. The Company also provides project engineering services in the supply, delivery and installation of power cable. The Company’s major customers include appliance component manufacturers, electrical contracting firms, state owned entities, and wire and cable dealers and factories.

Safe Harbor Statement

This release contains certain “forward-looking statements” relating to the Company, its business, and its subsidiary companies. These forward-looking statements are often identified by the use of forward-looking terminology such as “believes”, “anticipates”, “expects”, “estimates”, “intends”, “plans” or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as believed, anticipated, expected, estimated, intended or planned. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.

Contact:

Investor Relations Contact:
Pacific Holdings Group
Attn: Paul Weber
2901 Dallas Parkway, Suite 360
Plano, TX 75093
Phone: (469) 797-7191
Email:pweber@pusa.com

For the six months

ended June 30,

2023

2022

 (Non-Audited)

 (Non-Audited)

US$'000

US$'000

Revenue

            193,478

            207,358

Cost of sales

           (185,501)

           (193,865)

Gross profit

                7,977

              13,493

Other operating income

                   243

                   880

Selling, general and administrative expenses

             (10,990)

             (12,550)

Other operating expenses

                     (9)

                     (4)

Operating (loss)/profit

              (2,779)

                1,819

Finance costs

              (1,194)

                 (662)

Finance income

                    87

                    52

Share of loss of associates

                     (1)

                     (2)

Exchange loss

                   (66)

                 (663)

Other income

                   571

                   530

Other expense

                     —

                     —

(Loss)/profit before tax

              (3,382)

                1,074

Income tax expense

                   913

              (1,213)

Loss for the period

              (2,469)

                 (139)

Attributable to:

Equity holders of the parent

                    15

                 (336)

Non-controlling interests

              (2,484)

                   197

Basic and diluted profit/(loss) per share

$              0.001

$              (0.02)

Basic and diluted weighted average common shares outstanding

        20,616,227

        20,020,364

For the six months

ended June 30,

2023

2022

 (Non-Audited)

 (Non-Audited)

US$'000

US$'000

Loss for the period

           (2,469)

               (139)

Other comprehensive income

Other comprehensive income to be reclassified to profit or loss in subsequent periods:

Exchange differences on translation of foreign operations, net of tax of nil

           (5,827)

           (10,621)

           (5,827)

           (10,621)

Other comprehensive income not to be reclassified to profit or loss in subsequent periods:

Changes in the fair value of equity instruments measured at FVOCI

               667

            (1,475)

Income tax effect

              (133)

                 295

               534

            (1,180)

Re-measuring losses on defined benefit plans

                 69

                 177

Income tax effect

                (14)

                 (35)

                 55

                 142

Other comprehensive loss for the year , net of tax

           (5,238)

           (11,659)

Total comprehensive loss for the period, net of tax

           (7,707)

           (11,798)

Attributable to:

Equity holders of the parent

           (4,063)

            (8,336)

Non-controlling interests

           (3,644)

            (3,462)

           (7,707)

           (11,798)

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands of US Dollars, except share data)

As of
June 30, 2023
(Non-audited)

As of
December 31, 2022
(Audited)

US$'000

US$'000

Assets

Current assets

Cash and cash equivalents

              38,988

              54,017

Financial assets at fair value through profit or loss

                   516

                    39

Trade receivables

              74,454

              81,982

Other receivables

                2,771

                2,397

Contract assets

                9,669

              12,450

Due from related parties

              11,613

              11,018

Inventories

            126,775

            130,608

Prepayments

                5,192

                3,341

Other current assets

                4,249

                3,673

            274,227

            299,525

Non-current assets

Financial assets at fair value through other comprehensive income

                2,437

                1,553

Property, plant and equipment

              48,305

              50,713

Right of use assets

                2,992

                3,432

Investment properties

                5,037

                5,250

Intangible assets

                   149

                   139

Investments in associates accounted from using equity method

                   782

                   805

Deferred tax assets

                7,860

                7,143

Other non-current assets

                3,026

                2,459

              70,588

              71,494

Total assets

            344,815

            371,019

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands of US Dollars, except share data)

As of
June 30, 2023
(Non-audited)

As of
December 31, 2022
(Audited)

US$'000

US$'000

Liabilities

Current liabilities

Interest-bearing loans and borrowings

                   46,791

                   45,576

Trade and other payables

                   45,668

                   39,891

Due to related parties

                   10,355

                   16,613

Financial liabilities at fair value through profit or loss

                          —

                           6

Accruals

                   12,004

                   21,218

Current tax liabilities

                     1,524

                     2,432

Employee benefit liabilities

                     2,111

                     1,947

Financial lease liabilities

                        601

                        627

Other current liabilities

                     6,362

                     5,289

                  125,416

                  133,599

Non-current liabilities

Interest-bearing loans and borrowings

                     2,965

                   12,155

Employee benefit liabilities

                     7,555

                     7,693

Lease liabilities

                     1,608

                     1,947

Deferred tax liabilities

                     3,835

                     4,197

                   15,963

                   25,992

Total liabilities

                  141,379

                  159,591

Equity

Issued capital

                        206

                        206

Additional paid-in capital

                  118,103

                  118,103

Treasury shares

                        (38)

                        (38)

Retained earnings

                   54,079

                   54,064

Other components of equity

                  (24,818)

                  (20,740)

Equity attributable to equity holders of the parent

                  147,532

                  151,595

Non-controlling interests

                   55,904

                   59,833

Total equity

                  203,436

                  211,428

Total liabilities and equity

                  344,815

                  371,019

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. Dollars)

For the years

ended June 30,

2023

2022

 (Non-Audited)

 (Non-Audited)

US$'000

US$'000

Net cash (used in)/provided by operating activities

           (3,518)

            (2,865)

Net cash used in investing activities

           (2,849)

               (682)

Net cash (used in)/provided by financing activities

           (7,389)

             8,674

Effect of exchange rate on cash and cash equivalents

           (1,273)

            (3,011)

Net (decrease)/increase in cash and cash equivalents

         (15,029)

             2,116

Cash and cash equivalents at beginning of period

           54,017

            42,512

Cash and cash equivalents at end of period

           38,988

            44,628