TAIPEI, Taiwan, August 26, 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 six months ended June 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 six months ended June 30, 2024 were $214.3 million, a increase of 10.8% from $193.5 million for the six months ended June 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 14.0%, mainly driven by higher sales of power cables and fabrication services, fueled by economic expansion and government efforts in infrastructure development, public utilities, and the implementation of renewable energy, particularly solar power. Revenues in the Company's North Asia region increased  by 12.5% for several reasons, including a rise in copper prices, growth in the number of new customers, and the commencement of rectangular wire production. Although the sales volume of rectangular wires was not large, their prices were relatively higher. Revenues in the Company's ROW region increased by 7.5%, 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 six months ended June 30, 2024 was $1.2 million, a increase of 144.7% from operating profit of $-2.8 million for the six months ended June 30, 2023.  Operating profit margin increased from a loss of (1.44)% in 2023 to a profit of 0.58% in 2024.  In the Thailand region, the operating profit margin increased from (7.87)% in 2023 to 1.41% in 2024. This positive shift was largely due to enhanced profitability in the public sector and the reversal of the inventory valuation provision. In the North Asia region, the operating profit margin decreased from 7.08% in 2023 to (1.52)% 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 2.11% in 2023 to 1.66% in 2024 primarily due to an increased allowance for onerous contracts in Singapore.

Selling, general and administrative expenses for the six months ended June 30, 2024 were $12.5 million, compared to $11.0 million reported for the six months ended June 30, 2023.  Net profit attributable to APWC equity shareholders of the parent was $-0.5 million for the six months ended June 30, 2024, compared to a net profit of $0.02 million for the six months ended June 30, 2023. The weighted average number of shares issued and outstanding was 20.62 million and 20.62 million for the six months ended June 30, 2024 and 2023, respectively.

Financial Condition
 

APWC reported $33.7 million in cash and cash equivalents as of June 30, 2024, compared to cash and cash equivalents of $39.0 million as of June 30, 2023.

Current assets totaled $282.5 million as of June 30, 2024, compared to $295.0 million as of December 31, 2023.  Working capital was $154.6 million as of June 30, 2024. Short-term bank loans were $53.665 million at June 30, 2024, a decrease of $72,000 from $53.737 million at December 31, 2023.  The Company had $6.2 million in long-term debt outstanding at June 30, 2024, compared to no long-term debt outstanding as of December 31, 2023. Shareholder's equity attributable to APWC was $149.9 million as of June 30, 2024, compared to $157.1 million as of December 31, 2023.

APWC reported cash used in operating activities of $10.8 million during the six months ended June 30, 2024, compared to cash used in operating activities in the amount of $3.5 million in the corresponding period in 2023. The cash outflow from operating activities was primarily due to slower accounts receivable collection.  The Company reported $0.8 million in cash outflows from investing activities during the six months ended June 30, 2024, compared to $2.8 million in cash outflows in the same period of 2023. The decrease in cash used in investing activities in the six months of 2024 was primarily attributable to the decrease in purchases of property, plant and equipment in 2024. APWC reported $9.1 million in cash inflows from financing activities during the first six months of 2024, compared to $7.4 million in cash outflows from financing activities in the same period of 2023. The increase in cash inflows was due to an increase in borrowing in 2024.

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,

2024

2023

US$'000

US$'000

Revenue

            214,330

            193,478

Cost of sales

           (200,848)

           (185,501)

Gross profit

                13,482

              7,977

Other operating income

               981

                  243

Selling, general and administrative expenses

             (12,471)

             (10,990)

Other operating expenses

                    —

                     (9)

Operating profit

            1,241

               (2,779)

Finance costs

              (1,165)

                 (1,194)

Finance income

                   97

                    87

Share of loss of associates

                     (1)

                     (1)

Exchange loss

                   149

                 (66)

Other income

                   243

                   571

Other expense

                   (207)

                     —

(Loss)/profit before tax

              357

                (3,382)

Income tax expense

                  (397)

              913

Loss for the period

              (40)

                 (2,469)

Attributable to:

Equity holders of the parent

                 (510)

                 15

Non-controlling interests

              470

                  (2,484)

Basic and diluted profit/(loss) per share

$              (0.02)

$              0.001

Basic and diluted weighted average common shares outstanding

        20,616,227

        20,616,227

For the six months

ended June 30,

2024

2023

US$'000

US$'000

(Loss)/Profit for the period

           (40)

               (2,469)

Other comprehensive income/(loss)

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

           (10,289)

           (5,827)

           (10,289)

           (5,827)

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

               253

            667

Income tax effect

              (51)

                 (133)

               202

           534

Re-measuring losses on defined benefit plans

                 41

                69

Income tax effect

                (8)

                 (14)

                 33

                 55

Other comprehensive loss for the year , net of tax

           (10,054)

           (5,238)

Total comprehensive loss for the period, net of tax

           (10,094)

           (7,707)

Attributable to:

Equity holders of the parent

           (7,113)

            (4,063)

Non-controlling interests

           (2,981)

            (3,644)

           (10,094)

           (7,707)

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands of US Dollars, except share data)

As of
June 30, 2024
(Non-audited)

As of

December 31, 2023
(Audited)

US$'000

US$'000

Assets

Current assets

Cash and cash equivalents

              33,653

              37,970

Financial assets at fair value through profit or loss

                  14

                    307

Trade receivables

             109,552

              104,955

Other receivables

                1,218

                1,670

Contract assets

                2,962

              13,946

Due from related parties

              552

              1,368

Inventories

            123,218

            128,230

Prepayments

                5,542

                2,595

Other current assets

                5,788

                3,909

           282,499

            294,950

Non-current assets

Financial assets at fair value through other comprehensive income

                3,350

                2,902

Property, plant and equipment

              45,744

              49,941

Right of use assets

                2,354

                2,825

Investment properties

                4,862

               5,112

Intangible assets

                   128

                   124

Investments in associates accounted from using equity method

                  753

                  810

Deferred tax assets

               7,502

                7,799

Other non-current assets

                2,769

                2,201

              67,462

              71,714

Total assets

            349,961

            366,664

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands of US Dollars, except share data)

As of
June 30, 2024
(Non-audited)

As of

December 31, 2023
(Audited)

US$'000

US$'000

Liabilities

Current liabilities

Interest-bearing loans and borrowings

                   53,665

                  53,737

Trade and other payables

                   50,051

                   51,743

Due to related parties

                   4,776

                   7,941

Financial liabilities at fair value through profit or loss

                          —

                          74

Accruals

                  11,340

                  15,250

Current tax liabilities

                    956

                     2,116

Employee benefit liabilities

                     1,390

                     1,839

Financial lease liabilities

                        482

                       638

Other current liabilities

                     5,197

                     7,235

                  127,857

                  140,573

Non-current liabilities

Interest-bearing loans and borrowings

                     6,177

                   —

Employee benefit liabilities

                     6,146

                     5,997

Lease liabilities

                     1,169

                     1,445

Other non-current liabilities

                   183

                     188

                   17,577

                   11,470

Total liabilities

                  145,434

                  152,043

Equity

Issued capital

                        206

                        206

Additional paid-in capital

                  118,103

                  118,103

Treasury shares

                        (38)

                        (38)

Retained earnings

                   57,421

                   57,931

Other components of equity

                  (25,746)

                  (19,143)

Equity attributable to equity holders of the parent

                  149,946

                  157,059

Non-controlling interests

                  54,581

                   57,562

Total equity

                  204,527

                  214,621

Total liabilities and equity

                  349,961

                  366,664

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands of U.S. Dollars)

For the six months

ended June 30,

2024

2023

US$'000

US$'000

Net cash (used in)/provided by operating activities

           (10,768)

            (3,518)

Net cash used in investing activities

           (797)

               (2,849)

Net cash (used in)/provided by financing activities

           9,092

             (7,389)

Effect of exchange rate on cash and cash equivalents

           (1,844)

            (1,273)

Net (decrease)/increase in cash and cash equivalents

         (4,317)

             (15,029)

Cash and cash equivalents at beginning of period

           37,970

            54,017

Cash and cash equivalents at end of period

           33,653

           38,988