UPDATE — Asia Pacific Wire & Cable Corporation

TAIPEI, Taiwan, Sept. 07, 2022 (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, 2022. 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 2022 Financial Results (Ended June 30, 2022), and 2021 comparative results
 
  First 6 Months 2022 First 6 Months 2021 CHANGE
Revenues $ 207.4 million $ 225.3 million (8.0)%
Operating Profit/(Loss) $ 1.8 million $ 5.0 million (63.4)%
Net Income/(Loss) $ (0.3) million $ (0.1) million 189.7%
EPS(1) $ (0.02) $ (0.01) (100.0)%
 
(1)The calculation of the earnings per share is based on 20,020,364 and 13,819,669 basic and diluted weighted average common shares issued and outstanding for the six months ended June 30, 2022 and 2021, respectively

Revenues for the six months ended June 30, 2022 were $207.4 million, a decrease of 8.0% from $225.3 million for the six months ended June 30, 2021.  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 11.9%, primarily attributable to the sales decrease from the public sector in 2022 and the depreciation of the Thai Baht, which depreciated 9.39% compared to 2021. Revenues in the Company’s North Asia region decreased 20.5%, due to decreased sales volume, resulting primarily due to the economic slowdown. , The ongoing conflict in Ukraine and China’s COVID lockdowns added to supply chain problems and impacted the global economy. Revenues in the Company’s Rest of World (“ROW”) region increased 6.7% due to orders being released to the market, after the Singapore government removed certain COVID-19 restrictions. A decline in the demand for cables decreased revenues 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 for the six months ended June 30, 2022 were $1.8 million, a decrease of 63.4% from $5.0 million for the six months ended June 30, 2021.  Operating profit margin decreased from a profit of 2.2% in 2021 to a profit of 0.9% in 2022.  In the Thailand region, operating profit margin decreased from 3.93% in 2021 to 1.19% in 2022. The operating profit fell following a decline in higher margin Thai government projects and the fluctuation of copper prices. In the North Asia region, operating profit margin decreased from 2.74% in 2021 to 2.31% in 2022, resulting from decreased revenue and the fluctuation of copper prices. The ROW region’s operating profit margin decreased from 1.25% in 2021 to 0.49% in 2022. The decrease was attributable primarily to the decreased revenue in Australia.

Selling, general and administrative expenses for the six months ended June 30, 2022 were $12.6 million, compared to $13.0 million reported for the six months ended June 30, 2021.  Net loss attributable to APWC shareholders was $(0.3) million for the first half of 2022, compared to a net loss of $(0.1) million for the first half of 2021.  The increase in net loss was primarily due to a decrease in revenues and operating profit. The weighted average number of shares issued and outstanding was 20.02 million and 13.82 million for the six months ended June 30, 2022 and 2021, respectively.

Financial Condition

APWC reported $44.6 million in cash and cash equivalents as of June 30, 2022, compared to cash and cash equivalents of $44.5 million as of December 31, 2021.

Current assets totaled $289.8 million as of June 30, 2022, compared to $312.0 million as of December 31, 2021.  Working capital was $160.4 million as of June 30, 2022. Short term bank loans were $43.7 million at June 30, 2022, a decrease of 29.6% from $62.1 million at December 31, 2021.  The Company had $12.2 million in long-term debt outstanding at June 30, 2022, compared to $3.3 in long-term debt as of December 31, 2021. Shareholder’s equity attributable to APWC was $147.1 million as of June 30, 2022, compared to $147.5 million as of December 31, 2021.

APWC reported $2.9 million in cash used in operating activities during the six months ended June 30, 2022, compared to cash used in operating activities of $46.3 million in the corresponding period in 2021. The decrease in cash used in operating activities in the first half of 2022 was primarily attributable to greater inventory purchased in 2021. The Company reported $0.7 million in cash outflows from investing activities during the six months ended June 30, 2022, compared to $1.9 million in cash outflows in the same period of 2021. The decrease in cash used in investing activities in the first half of 2022 was attributable primarily to the increase in purchases of property, plant and equipment in 2021. APWC reported $8.7 million in cash inflows from financing activities during the first six months of 2022, compared to $38.7 million in cash inflows from financing activities in the same period of 2021. The decrease in cash inflows is due to a decrease in borrowings in 2022.

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:
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
 
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,
        2022       2021  
      (Non-Audited)   (Non-Audited)
Revenue $ 207,358     $ 225,282  
Cost of sales   (193,865 )     (207,414 )
Gross profit   13,493       17,868  
           
Other operating income   880       238  
Selling, general and administrative expenses   (12,550 )     (13,025 )
Other operating expenses   (4 )     (117 )
Operating loss   1,819       4,964  
           
Finance costs   (662 )     (583 )
Finance income   52       76  
Share of loss of associates   (2 )     (1 )
Exchange loss   (663 )     (2,776 )
Other income   530       731  
Other expense         (1 )
Profit before tax   1,074       2,410  
Income tax expense   (1,213 )     (1,738 )
Loss for the period $ (139 )   $ 672  
           
Attributable to:      
Equity holders of the parent $ (336 )   $ (116 )
Non-controlling interests $ 197     $ 788  
Basic and diluted loss per share $ (0.02 )   $ (0.01 )
Basic and diluted weighted average common shares outstanding   20,020,364       13,819,669  
 
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,
        2022       2021  
      (Non-Audited)   (Non-Audited)
(Loss)/profit for the period $ (139 )   $ 672  
Other comprehensive income/(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   (10,621 )     (10,072 )
      (10,621 )     (10,072 )
Other comprehensive (loss)/income not to be reclassified to profit or loss in subsequent periods:      
  Changes in the fair value of equity instruments measured at FVOCI   (1,475 )     645  
  Income tax effect   295       (129 )
      (1,180 )     516  
  Re-measuring losses on defined benefit plans   177       244  
  Income tax effect   (35 )     (49 )
      142       195  
           
Other comprehensive loss for the year , net of tax   (11,659 )     (9,361 )
Total comprehensive loss for the period, net of tax   (11,798 )     (8,689 )
Attributable to:      
Equity holders of the parent   (8,336 )     (5,219 )
Non-controlling interests   (3,462 )     (3,470 )
      $ (11,798 )   $ (8,689 )
 
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of US Dollars, except share data)
       
  As of
June 30, 2022
(Unaudited)
  As of
December 31, 2021
(Audited)
       
Assets      
Current assets      
Cash and cash equivalents $ 44,628   $ 44,507
Financial assets at fair value through profit or loss   399     249
Trade receivables   86,892     103,564
Other receivables   2,309     2,648
Contract assets   9,445     11,381
Due from related parties   12,287     13,965
Inventories   128,006     128,797
Prepayments   1,697     2,526
Other current assets   4,148     4,366
    289,811     312,003
Non-current assets      
Financial assets at fair value through other comprehensive income   1,417     2,929
Property, plant and equipment   50,471     54,419
Right of use assets   3,096     3,393
Investment properties   5,392     5,809
Intangible assets   156     129
Investments in associates accounted from using equity method   789     835
Deferred tax assets   7,145     7,241
Other non-current assets   2,504     2,670
    70,970     77,425
Total assets $ 360,781   $ 389,428
 
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of US Dollars, except share data)
       
  As of
June 30, 2022
(Unaudited)
  As of
December 31, 2021
(Audited)
Liabilities      
Current liabilities      
Interest-bearing loans and borrowings $ 43,694     $ 62,083  
Trade and other payables   37,691       44,784  
Due to related parties   12,293       11,865  
Accruals   19,080       23,374  
Current tax liabilities   3,150       3,394  
Employee benefit liabilities   2,012       1,987  
Financial lease liabilities   513       571  
Other current liabilities   10,975       14,135  
    129,408       162,193  
       
Non-current liabilities      
Interest-bearing loans and borrowings   12,163       3,304  
Employee benefit liabilities   8,241       8,593  
Lease liabilities   1,744       1,916  
Deferred tax liabilities   4,347       4,105  
    26,495       17,918  
Total liabilities   155,903       180,111  
       
       
Equity      
Issued capital   206       138  
Additional paid-in capital   118,103       110,249  
Treasury shares   (38 )     (38 )
Retained earnings   49,854       50,190  
Other components of equity   (21,039 )     (13,039 )
Equity attributable to equity holders of the parent   147,086       147,500  
Non-controlling interests   57,792       61,817  
Total equity $ 204,878     $ 209,317  
Total liabilities and equity $ 360,781     $ 389,428  
 
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Non-Audited)
(In thousands of U.S. Dollars)
       
  For the years
  ended June 30,
    2022       2021  
  (Non-Audited)   (Non-Audited)
Net cash used in operating activities $ (2,865 )   $ (46,256 )
Net cash used in investing activities   (682 )     (1,905 )
Net cash provided by financing activities   8,674       38,702  
Effect of exchange rate on cash and cash equivalents   (3,011 )     (3,764 )
Net increase (decrease) in cash and cash equivalents   2,116       (13,223 )
Cash and cash equivalents at beginning of period   42,512       52,237  
Cash and cash equivalents at end of period $ 44,628     $ 39,014  

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