GlobeNewswire Inc | Nov 16, 2021 04:05PM EST

November 16, 2021

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 Financial Results(Ended June 30, 2021), and 2020comparative results

First 6 Months 2021 First 6 Months CHANGE 2020Revenues $ 225.3 $ 127.6 76.5% million millionOperating Profit $ 5.0 million $ 0.3 million 1780.3%Net (Loss) $ (0.1) $ (1.2) 90.2% million millionEPS^(^1) $ (0.01) $ (0.09) 88.9%

^(^1)The calculation of the earnings per share is based on 13,819,669 and13,819,669 basic and diluted weighted average common shares issued andoutstanding for the six months ended June 30, 2021 and 2020, respectively.

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 Companys Thailand, North Asia, and Rest of World (ROW) regions. Net revenue in the Companys 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 regions 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 Peoples 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 Companys 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:SkylineCorporateCommunicationsGroup,LLCLisa Gray, Senior Account Manager OneRockefellerPlaza,11thFloorNewYork,NY10020Office:(646)893-5835Email:lisa@skylineccg.com

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIESCONSOLIDATED 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 (13,025 ) (11,844 )expensesOther 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 13,819,669 13,819,669 shares outstanding

ASIA PACIFIC WIRE & CABLE CORPORATION LIMITED AND SUBSIDIARIESCONSOLIDATED 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 (10,072 ) (6,919 ) foreign operations, net of tax of nil (10,072 ) (6,919 )Other comprehensive income/(loss) not to bereclassified to profit or loss in subsequent periods: Changes in the fair value of equity instruments measured at fair value through 645 (1,069 ) other comprehensive income/(loss) Income tax effect (129 ) 214 516 ) (855 Re-measuring income on defined benefit 244 134 plans Income tax effect (49 ) (26 ) 195 108 Other comprehensive loss for the period, net (9,361 ) (7,666 )of taxTotal comprehensive loss for the period, net (8,689 ) (8,000 )of taxAttributable 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 SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In thousands of U.S. Dollars, except share data) As of As of June 30, 2021 December 31, 2020 (Unaudited) (Audited) Assets Current assetsCash and cash $ 39,014 $ 52,237equivalentsFinancialassets at fair value -through 441profit orlossTrade 98,012 receivables 82,071Other receivables 3,472 6,192Contract 9,286 assets 10,245Due from related 11,983 10,982partiesInventories 133,297 96,371Prepayments 5,759 4,055Other current 5,357 assets 1,546 306,621 263,699Non-current assetsFinancialassets atfair value 2,866 through other 2,271comprehensiveincomeProperty, plant and 53,331 54,700equipmentRight of use 3,023 assets 3,248Investment 6,108 6,378propertiesIntangible 148 assets 180Investments 870 930in associatesDeferred tax 3,961 3,889assetsOthernon-current 3,564 2,824assets 73,871 74,420Total 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 As of June 30, December 31, 2021 2020 (Unaudited) (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 152,641 157,860 parentNon-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 SUBSIDIARIESCONSOLIDATED 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 tonet 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 (114 )?? (43 )equipment ??Adjustment for gain on fair value of (458 ) (25 )derivativesFinance 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 (4 )?? (7 )for related parties ??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 (43,687 )?? 11,331 activitiesInterest received 84 1,032 Interest paid (485 )?? (296 ) ??Income tax paid (2,168 )?? (1,220 ) ??Net cash (used in) provided by operating (46,256 )?? 10,847 activitiesInvesting 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 133 64 equipmentProceeds from maturities of short-term bank 3,509 ?? ? ??depositsNet cash used in investing activities (1,905 ) (15,740 ) ??Financing activities: Dividend paid to non-controlling shareholders (2,815 ) (1,207 )of subsidiariesRepayments 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 ??