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 growth was the amplified sales of power cables, spurred by the increased demand in 2024 in
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.
1
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
2
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
3
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
4
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 | |||||
20,616,227 | 20,616,227 | ||||
shares outstanding | |||||
5
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,
(Loss)/Profit for the period
Other comprehensive income/(loss)
Other comprehensive income to be reclassified to profitor loss in subsequent periods:
Exchange differences on translation of foreign operations, net of tax of nil
2024 | 2023 | |
US$'000 | US$'000 | |
(40) | (2,469) | |
(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
Income tax effect
Re-measuring losses on defined benefit plans Income tax effect
Other comprehensive loss for the year , net of tax
Total comprehensive loss for the period, net of tax Attributable to:
Equity holders of the parent
Non-controlling interests
253 | 667 | |||
(51) | (133) | |||
202 | 534 | |||
41 | 69 | |||
(8) | (14) | |||
33 | 55 | |||
(10,054) | (5,238) | |||
(10,094) | (7,707) | |||
(7,113) | (4,063) | |||
(2,981) | (3,644) | |||
(10,094) | (7,707) | |||
6
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of US Dollars)
As of | |||||||
As of | December 31, | ||||||
June 30, 2024 | 2023 | ||||||
(Non-audited) | (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 | 3,350 | 2,902 | |||||
comprehensive income | |||||||
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 | |||||
7
ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of US Dollars)
As of | As of | ||||||
June 30, 2024 | December 31, 2023 | ||||||
(Non-audited) | (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 | - | 74 | |||||
profit or loss | |||||||
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 | 149,946 | 157,059 | |||||
parent | |||||||
Non-controlling interests | 54,581 | 57,562 | |||||
Total equity | 204,527 | 214,621 | |||||
Total liabilities and equity | 349,961 | 366,664 | |||||
8
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 | ||
9