Asia Pacific Wire & Cable Corporation Limited 6K Reports Second Quarter 2024 Financial Results | APWC 26 Aug 24

Asia Pacific Wire & Cable Corporation Limited

Reports Second Quarter 2024 Financial Results

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.


First Six Months 2024 Financial Results (Ended June 30, 2024), and 2023 comparative results

	First 6 Months 2024		First 6 Months 2023		CHANGE
Revenues	$	214.3 million	$	193.5 million	10.8%
Operating Profit	$	1.2 million	$	-2.8 million	144.7%
Net Income	$	-0.5 million	$	0.02 million	(3500.0)%
EPS1	$	-0.02	$	0.001	(2100.0)%

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

1 The calculation of the earnings per share is based on 20,616,227 and 20,616,227 basic and diluted weighted average common shares issued and outstanding for the six months ended June 30, 2024 and 2023, respectively. The numerator uses the profit or loss attributable to the ordinary equity holders of the parent.

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


ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(Non-Audited)
(Amounts in thousands of US Dollars, except share data)

	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)
	(40)		(2,469)

Basic and diluted profit per share	$	(0.02)	$	0.001
Basic and diluted weighted average common shares outstanding	20,616,227		20,616,227


ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Non-Audited)
(Amounts in thousands of US Dollars, except share data)

	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)

	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	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)

	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
(Non-Audited)
(In thousands of US 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 provided by financing activities	9,092	(7,389)
Effect of exchange rate	(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

Asia Pacific Wire & Cable Corporation Limited (APWC) 6-KReports Second Quarter 2024 Financial Results