TAIPEI, Taiwan, Nov. 16, 2021 (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, 2021. 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.

First Six Months 2021 Results
 

Revenues for the six months ended June 30, 2021, were $225.3 million, an increase of 76.5% from $127.6 million for the six months ended June 30, 2020. The increase was primarily attributable to revenue increases in the Company’s Thailand, North Asia, and Rest of World (“ROW”) regions. Net revenue in the Company’s Thailand region increased by 58.0%, primarily attributable to increases in copper prices and due to lower sales in the first half of 2020 because of the pandemic. Revenues in the Company's North Asia region increased by 83.8%, primarily attributable to increases in copper prices and due to lower sales in the first half of 2020 because of the pandemic. Revenues in the Company's Rest of World ("ROW") region increased by 102.8%, primarily due to deferral of orders in Singapore (which had a lockdown from March to June 2020) and stricter border control in Australia. The Company's North Asia region includes China and Hong Kong; 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 (loss) for the six months ended June 30, 2021 increased to $5.0 million from $0.3 million for the six months ended June 30, 2020. Operating profit margin increased from 0.2% in 2020 to 2.2% in 2021. In the Thailand region, operating profit (loss) margin increased slightly year over year from 3.7% to 3.9%. Revenue increased by 58%, but operating profit remained low because the Thailand region provided a $2.2 million allowance for diminution in the value of inventories in 2021. In the North Asia region, operating profit (loss) margin decreased slightly from 3.0% in 2020 to 2.7% for the same period in 2021, primarily attributable to copper price fluctuations. The ROW region’s operating profit (loss) margin increased from (4.1)% in 2020 to 1.3% in 2021, primarily attributable to decreased competition due to COVID-19.

Selling, general and administrative expenses for the six months ended June 30, 2021 were $13.0 million, compared to $11.8 million reported for the six months ended June 30, 2020. Net income (loss) attributable to APWC shareholders was $(0.1) million for the first six months of 2021, compared to $(1.2) million for the same period in 2020. The increase in net income was primarily due to an increase in gross profit. The weighted average number of shares issued and outstanding was 13.82 million for the six months ended June 30, 2021 and 2020.

Financial Condition
 

APWC reported $39.0 million in cash and cash equivalents as of June 30, 2021, compared to cash and cash equivalents of $52.2 million as of December 31, 2020.

Current assets totaled $306.6 million as of June 30, 2021, compared to $263.7 million as of December 31, 2020. Working capital was $168.9 million as of June 30, 2021, as compared to $174.3 million as of June 30, 2020. Short term bank loans were $56.2 million at June 30, 2021, an increase from $10.1 million at the end of 2020. The Company had $3.5 million in long-term debt outstanding at June 30, 2021, compared to $3.7 million in long-term debt as of December 31, 2020. Shareholder's equity attributable to APWC was $152.6 million as of June 30, 2021, compared to $157.9 million as of December 31, 2020.

APWC reported $46.3 million in cash used in operations during the six months ended June 30, 2021, compared to cash generated from operations of $10.8 million in the corresponding period in 2020. The increase in cash used in operations in 2021 was primarily attributable to recovery of economy, which led to an increase in purchases of materials and copper prices. The Company reported $1.9 million in cash outflows from investing activities during the six months ended June 30, 2021, compared to $15.7 million in cash outflows in the same period of 2020. The decrease in cash used for investing activities was attributable primarily to decrease in purchase of investment properties and short-term bank deposits in 2021. APWC reported $38.7 million in cash inflows from financing activities during the first six months of 2021, compared to $5.6 million in cash inflows from financing activities in the same period of 2020. The increase in cash inflows in 2021 was primarily attributable to an increase in borrowings.

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 is a holding company incorporated in Bermuda with principal executive offices in Taiwan that operates our business through operating subsidiaries. Through our subsidiaries, our Company is principally engaged in the manufacture and distribution (in descending order of sales) of enameled wire, power cable, and telecommunications products in Thailand, Singapore, Australia, the People’s Republic of China (the “PRC”), Hong Kong and certain other markets in the Asia Pacific region. Our Company also engages in the distribution of certain wire and cable products manufactured by our controlling shareholder, Pacific Electric Wire & Cable Company (a Taiwanese company), and third parties. Our Company also provides project engineering services in the supply, delivery and installation of power cable. Our Company’s major customers include government organizations, electric contracting firms, electrical dealers, and wire and cable factories. In 2020, the Thailand market accounted for approximately 46% of sales, the Rest of World (“ROW”) market (which refers to Australia, Singapore and certain other markets in the Asia Pacific region) accounted for approximately 31% of sales, and the North Asia market (which refers to PRC and Hong Kong) accounted for approximately 23% of sales.

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 periodic 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:
Skyline Corporate Communications Group, LLC
Lisa Gray, Senior Account Manager
One Rockefeller Plaza, 11th Floor
New York, NY 10020
Office:(646) 893-5835
Email:lisa@skylineccg.com
Web:   https://asiaalphair.com/

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

(Amounts in thousands of U.S. Dollars, except share data)

For the six months

ended June 30,

2021

2020

(Unaudited)

(Unaudited)

Revenue

$225,282

$127,614

Cost of sales

(207,414)

(115,544)

Gross profit

17,868

12,070

Other operating income

238

262

Selling, general and administrative expenses

(13,025)

(11,844)

Other operating expenses

(117)

(224)

Operating profit

4,964

264

Finance costs

(583)

(370)

Finance income

76

178

Share of loss of associates

(1)

(1)

Exchange loss

(2,776)

145

Other income

731

584

Other expense

(1)

-

Profit before tax

2,410

800

Income tax expense

(1,738)

(1,134)

Profit/(loss) for the period

$672

$(334)

Attributable to:

Equity holders of the parent

$(116)

$(1,180)

Non-controlling interests

$788

$846

Basic and diluted loss per share

$(0.01)

$(0.09)

Basic and diluted weighted average common shares outstanding

13,819,669

13,819,669

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in thousands of U.S. Dollars, except share data)

For the six months

ended June 30,

2021

2020

(Unaudited)

(Unaudited)

Profit/(loss) for the period

$672

$(334)

Other comprehensive loss

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

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

(10,072)

(6,919)

(10,072)

(6,919)

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 fair value through other comprehensive income/(loss)

645

(1,069)

Income tax effect

(129)

214

516

(855)

Re-measuring income on defined benefit plans

244

134

Income tax effect

(49)

(26)

195

108

Other comprehensive loss for the period, net of tax

(9,361)

(7,666)

Total comprehensive loss for the period, net of tax

(8,689)

(8,000)

Attributable to:

Equity holders of the parent

(5,219)

(6,096)

Non-controlling interests

(3,470)

(1,904)

$(8,689)

$(8,000)

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. Dollars, except share data)

As of
June 30, 2021
(Unaudited)

As of
December 31, 2020
(Audited)

Assets

Current assets

Cash and cash equivalents

$39,014

$52,237

Financial assets at fair value through profit or loss

441

-

Trade receivables

98,012

82,071

Other receivables

3,472

6,192

Contract assets

9,286

10,245

Due from related parties

11,983

10,982

Inventories

133,297

96,371

Prepayments

5,759

4,055

Other current assets

5,357

1,546

306,621

263,699

Non-current assets

Financial assets at fair value through other comprehensive income

2,866

2,271

Property, plant and equipment

53,331

54,700

Right of use assets

3,023

3,248

Investment properties

6,108

6,378

Intangible assets

148

180

Investments in associates

870

930

Deferred tax assets

3,961

3,889

Other non-current assets

3,564

2,824

73,871

74,420

Total assets

$380,492

$338,119

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. Dollars, except share data)

As of
June 30, 2021
(Unaudited)

As of
December 31, 2020
(Audited)

Liabilities

Current liabilities

Interest-bearing loans and borrowings

$56,193

$10,131

Trade and other payables

38,077

27,370

Due to related parties

6,541

10,620

Accruals

20,397

21,361

Current tax liabilities

3,205

3,567

Employee benefit liabilities

1,918

1,950

Lease liabilities

449

551

Other current liabilities

10,907

7,826

137,687

83,376

Non-current liabilities

Interest-bearing loans and borrowings

3,493

3,650

Employee benefit liabilities

9,580

10,027

Lease liabilities

1,675

1,783

Deferred tax liabilities

4,686

4,408

19,434

19,868

Total liabilities

157,121

103,244

Equity

Issued capital

138

138

Additional paid-in capital

110,416

110,416

Treasury shares

(38)

(38)

Retained earnings

52,716

52,832

Other components of equity

(10,591)

(5,488)

Equity attributable to equity holders of the parent

152,641

157,860

Non-controlling interests

70,730

77,015

Total equity

$223,371

$234,875

Total liabilities and equity

$380,492

$338,119

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. Dollars)

For the six months ended June 30,

2021

2020

(Unaudited)

(Unaudited)

Operating activities:

Profit before tax

2,410

800

Adjustments to reconcile profit before tax to net cash

provided by operating activities:

Depreciation

2,659

2,577

Impairment of property, plant and equipment

28

—

Amortization of intangible assets

27

29

Gain on disposal of property, plant and equipment

(114)

(43)

Adjustment for gain on fair value of derivatives

(458)

(25)

Finance income

(76)

(178)

Finance costs

583

370

Share of loss of associates

1

1

Impairment for trade receivables

89

223

Reversal of impairment for trade receivables for related parties

(4)

(7)

Reversal of impairment for other receivable

—

(111)

Impairment of inventories

2,584

982

Unrealized foreign exchange difference, net

2,037

111

Changes in operating assets and liabilities

Trade and other receivable, net

(19,022)

22,042

Contract assets

791

2,886

Inventories

(44,828)

(22,667)

Prepayment and other current assets

(5,858)

(3,427)

Amounts due to/from related parties

731

633

Other non-current assets

(283)

(80)

Trade and other payables, accruals, other current liabilities and

other non-current liabilities

15,016

7,215

Net cash flows (used in) provided by operating activities

(43,687)

11,331

Interest received

84

1,032

Interest paid

(485)

(296

Income tax paid

(2,168)

(1,220)

Net cash (used in) provided by operating activities

(46,256

10,847

Investing activities:

Purchases of property, plant and equipment

(4,226)

(3,892)

Purchases of intangible assets

(1)

(55)

Purchases of investment properties

—

(4,865)

Purchases of long-term bank deposits

(39

(604)

Purchases of short-term bank deposits

(1,281

(6,388)

Proceeds from disposal of property, plant and equipment

133

64

Proceeds from maturities of short-term bank deposits

3,509

—

Net cash used in investing activities

(1,905)

(15,740)

Financing activities:

Dividend paid to non-controlling shareholders of subsidiaries

(2,815

(1,207)

Repayments of borrowings

(2,817

(2,297)

Repayments of borrowings - related parties

(6,000

—

Proceeds from borrowings

50,650

9,340

Principal elements of lease payments

(316)

(274)

Net cash provided by financing activities

38,702

5,562

Effect of exchange rate

(3,764)

(1,421)

Net decrease in cash and cash equivalents

(13,223)

(752)

Cash and cash equivalents at beginning of year

52,237

53,673

Cash and cash equivalents at end of period

39,014

52,921