TAIPEI, Taiwan, December 2, 2024 (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 nine months ended September 30, 2024. 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 nine months ended September 30, 2024 were $336.6 million, an increase of 14.4% from $294.2 million for the nine months ended September 30, 2023. The increase was attributable to revenue increases across the Company’s Thailand, North Asia and Rest of World ("ROW") regions. Net revenue in the Company’s Thailand region increased by 14.7%, mainly driven by higher sales of power cables and fabrication services. However, in Q3 2024, the wire and cable market in Thailand experienced a shift in momentum. While earlier quarters, particularly Q1, saw significant growth fueled by government projects and contracts with state-owned enterprises, the pace of activity slowed in Q3. Less favorable economic conditions reportedly led to a deceleration in customer projects. As a result, shipment volumes stopped rising as rapidly and instead remained steady or slightly declined, especially for products like low-voltage and medium-to-high-voltage cables, which had previously experienced strong demand. Revenues in the Company's North Asia region increased  by 17.8% for several reasons, including a rise in copper prices, an increase in the number of new customers, and the commencement of rectangular wire production as well as wires for drone motors. Revenues in the Company's ROW region increased by 13.1%: the primary driver of this growth was the amplified sales of power cables, spurred by the increased demand in 2024 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 profit for the nine months ended September 30, 2024 was $4.5 million, an increase of 3970.0% from operating profit of $0.1 million for the nine months ended September 30, 2023.  Operating profit margin increased from a loss of 0.04% in 2023 to a profit of 1.33% in 2024.  In the Thailand region, the operating profit margin increased from (3.78)% in 2023 to 2.85% in 2024. This positive shift was largely due to enhanced profitability in the public sector. In the North Asia region, the operating profit margin decreased from 3.21% in 2023 to (1.62)% in 2024: this downturn was primarily due to the reversal of previously provided provisions for employee benefits and pensions in 2023, along with a rise in research and development expenditures in 2024. The ROW region’s operating profit margin decreased from 3.21% in 2023 to 1.74% in 2024 primarily due to an increased allowance for onerous contracts in Singapore.

Selling, general and administrative expenses for the nine months ended September 30, 2024 were $19.0 million, compared to $17.9 million reported for the nine months ended September 30, 2023.  Net profit attributable to APWC equity shareholders of the parent was $0.9 million for the nine months ended September 30, 2024, compared to a net profit of $1.1 million for the nine months ended September 30, 2023. The weighted average number of shares issued and outstanding was 20.62 million and 20.62 million for the nine months ended September 30, 2024 and 2023, respectively.

Financial Condition
 

APWC reported $34.4 million in cash and cash equivalents as of September 30, 2024, compared to cash and cash equivalents of $38.5 million as of September 30, 2023.

Current assets totaled $287.9 million as of September 30, 2024, compared to $295.0 million as of December 31, 2023.  Working capital was $171.2 million as of September 30, 2024. Short-term bank loans were $44.9 million at September 30, 2024, a decrease of 8.8 million from $53.7 million at December 31, 2023.  The Company had $6.1 million in long-term debt outstanding at September 30, 2024, compared to no long-term debt outstanding as of December 31, 2023. Shareholder's equity attributable to APWC was $163.7 million as of September 30, 2024, compared to $157.1 million as of December 31, 2023.

APWC reported cash provided by operating activities of $2.9 million during the nine months ended September 30, 2024, compared to cash used in operating activities in the amount of $14.0 million in the corresponding period in 2023. The cash inflow from operating activities was primarily attributable to the increase in sales. The Company reported $2.2 million in cash outflows from investing activities during the nine months ended September 30, 2024, compared to $3.6 million in cash outflows in the same period of 2023. The decrease in cash used in investing activities for the nine months ended September 30, 2024 was primarily attributable to the increase in disposal of property, plant and equipment in 2024. APWC reported $5.4 million in cash outflows from financing activities during the first nine months of 2024, compared to $5.1 million in cash inflows from financing activities in the same period of 2023. The shift was primarily due to increased 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 nine months

ended September 30,

2024

2023

US$'000

US$'000

Revenue

           336.563

            294,210

Cost of sales

           (313,828)

           (276,619)

Gross profit

                22,735

             17,591

Other operating income

               1,167

                  390

Selling, general and administrative expenses

             (19,045)

             (17,854)

Other operating expenses

                    —

                     (17)

Operating profit

            4,477

              110

Finance costs

              (1,828)

                 (1,814)

Finance income

                163

                   137

Share of loss of associates

                     (2)

                     (1)

Exchange loss

                   864

                 (82)

Other income

                   426

                   976

Other expense

                   (275)

                     —

Profit/(Loss) before tax

              3,825

                (1,444)

Income tax expense

                  (1,353)

              640

Profit/(Loss) for the period

              2,472

                 (804)

Attributable to:

Equity holders of the parent

                 898

                 1,116

Non-controlling interests

             1,574

                  (1,920)

Basic and diluted profit per share

$              0.04

$              0.05

Basic and diluted weighted average common shares outstanding

        20,616,227

        20,616,227

For the nine months

ended September 30,

2024

2023

US$'000

US$'000

Profit/(Loss) for the period

           2,472

               (804)

Other compehensive income/(loss)

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

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

          8,973

           (11,141)

           8,973

           (11,141)

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

Changes in the fair value of equity instruments measured at FVOCI

               390

            446

Income tax effect

              (78)

                 (89)

               312

          357

Re-measuring losses on defined benefit plans

                 (37)

                152

Income tax effect

                7

                 (30)

                (30)

                 122

Other comprehensive income/(loss) for the year, net of tax

           9,255

           (10,662)

Total comprehensive income/( loss) for the period, net of tax

           11,727

           (11,466)

Attributable to:

Equity holders of the parent

          6,648

            (6,542)

Non-controlling interests

           5,079

            (4,924)

           (11,727)

           (11,466)

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands of US Dollars, except share data)

As of

September 30, 2024
(Non-audited)

As of

December 31, 2023
(Audited)

US$'000

US$'000

Assets

Current assets

Cash and cash equivalents

              34,403

              37,970

Financial assets at fair value through profit or loss

                — 

                    307

Trade receivables

             107,642

              104,955

Other receivables

                1,303

                1,670

Contract assets

               3,721

              13,946

Due from related parties

              2,164

              1,368

Inventories

            130,032

            128,230

Prepayments

                5,236

                2,595

Other current assets

                3,371

                3,909

           287,872

            294,950

Non-current assets

Financial assets at fair value through other comprehensive income

                3,585

                2,902

Property, plant and equipment

             50,858

              49,941

Right of use assets

                2,291

                2,825

Investment properties

                5,073

               5,112

Intangible assets

                   120

                   124

Investments in associates accounted from using equity method

                  858

                  810

Deferred tax assets

               7,852

                7,799

Other non-current assets

                2,834

                2,201

              73,471

              71,714

Total assets

            361,343

            366,664

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands of US Dollars, except share data)

As of
September 30, 2024
(Non-audited)

As of

December 31, 2023
(Audited)

US$'000

US$'000

Liabilities

Current liabilities

Interest-bearing loans and borrowings

                  44,926

                  53,737

Trade and other payables

                   47,421

                   51,743

Due to related parties

                  6,972

                   7,941

Financial liabilities at fair value through profit or loss

                         69

                          74

Accruals

                  9,206

                  15,250

Current tax liabilities

                    1,348

                     2,116

Employee benefit liabilities

                     1,778

                     1,839

Financial lease liabilities

                       420

                       638

Other current liabilities

                     4,503

                     7,235

                  116,643

                  140,573

Non-current liabilities

Interest-bearing loans and borrowings

                    6,112

                   —

Employee benefit liabilities

                     6,883

                     5,997

Lease liabilities

                     1,123

                     1,445

Other non-current liabilities

                   222

                     188

                   18,354

                   11,470

Total liabilities

                  134,997

                  152,043

Equity

Issued capital

                        206

                        206

Additional paid-in capital

                  118,103

                  118,103

Treasury shares

                        (38)

                        (38)

Retained earnings

                   58,829

                   57,931

Other components of equity

                  (13,393)

                  (19,143)

Equity attributable to equity holders of the parent

                  163,707

                  157,059

Non-controlling interests

                  62,639

                   57,562

Total equity

                  226,346

                  214,621

Total liabilities and equity

                  361,343

                  366,664

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. Dollars)

For the nine months

ended September 30,

2024

2023

US$'000

US$'000

Net cash (used in)/provided by operating activities

          2,851

            (13,982)

Net cash used in investing activities

           (2,208)

               (3,575)

Net cash (used in)/provided by financing activities

           (5,419)

             5,097

Effect of exchange rate on cash and cash equivalents

           1,207

            (3,034)

Net (decrease)/increase in cash and cash equivalents

         (3,567)

             (15,494)

Cash and cash equivalents at beginning of period

           37,970

            54,017

Cash and cash equivalents at end of period

           34,403

           38,523