Asia Pacific Wire & Cable(APWC) - 2022 Q4 - Annual Report

Financial Performance - Revenue for 2022 was $433,893,000, a decrease of 9$476,659,000 in 2021[19] - Gross profit increased to $32,530,000 in 2022 from$21,151,000 in 2021, representing a 54% increase[19] - Operating profit for 2022 was $8,067,000, compared to an operating loss of$4,973,000 in 2021[19] - Profit for the year attributable to equity holders of APWC was $3,874,000 in 2022, recovering from a loss of$2,642,000 in 2021[19] - Basic and diluted earnings per share for 2022 was $0.19, compared to a loss of$0.19 in 2021[19] - The company's total operating profit for 2022 was $8.067 million, compared to a loss of$4.973 million in 2021[200] - Gross profit increased by $11.4 million, or 53.8$21.2 million in 2021 to $32.5 million in 2022, with a gross profit margin of 7.5$8.1 million, representing an increase of $13 million or 262.2$(5) million in 2021[210] Cash and Assets - Cash and cash equivalents increased to $54,017,000 in 2022 from$44,507,000 in 2021, marking a 21% increase[20] - Total assets decreased to $371,019,000 in 2022 from$389,428,000 in 2021, a decline of 5%[20] - Total debts reduced to $57,731,000 in 2022 from$65,387,000 in 2021, a decrease of 12%[20] - The company reported a working capital of $165,926,000 in 2022, up from$149,810,000 in 2021[20] Market and Competition - The wire and cable industry in the Asia Pacific region is highly competitive, with competitors having greater resources potentially impacting sales[42] - The telecommunications cable business faces competition from alternative transmission technologies, particularly wireless[45] - Sales are highly concentrated in large state-owned enterprises (SOEs) or private infrastructure developers, making the company vulnerable to losing key customers[46] - Competition with PRC State-Owned Enterprises (SOEs) may materially impact business operations due to their competitive advantages and government subsidies[108] Risks and Challenges - The company faces risks related to COVID-19, including potential disruptions to operations and financial performance[22] - COVID-19 may materially and adversely affect the company's business operations and financial results, with ongoing monitoring of the situation[37] - The company faces risks related to foreign exchange fluctuations, particularly with currencies such as the Thai Baht, Australian dollar, Singapore dollar, and RMB, which could adversely affect financial performance[64] - Political and economic instability in Thailand could impact the company's operations and sales, particularly in the construction and infrastructure sectors[68] - The company is subject to various risks related to international operations, including supply disruptions and changes in foreign currency exchange rates[135] Regulatory and Compliance - The company is subject to environmental protection laws, which could result in liabilities that materially affect its financial condition[52] - The company is subject to restrictive covenants in existing debt agreements, which may materially restrict operations and affect liquidity[60] - The SEC has established a two-year non-inspection timeline for potential trading prohibitions, which could impact the company's ability to maintain its listing on Nasdaq[75] - The company's operations in the PRC are governed by evolving laws and regulations, which may create uncertainties and affect compliance[80] - The PRC government has significant discretion in interpreting laws, which may limit legal protections and remedies for the company in disputes[81] Sales and Revenue Breakdown - The Thailand region accounted for 40% of sales in 2022, while the ROW region accounted for 42% and North Asia accounted for 18%[63] - In 2022, total consolidated revenue from external customers was $433.9 million, with significant contributions from Thailand ($171.8 million) and ROW ($184.7 million) segments[148] - Revenue from the North Asia region decreased by$30 million, or 28%, from $107 million in 2021 to$77.3 million in 2022, primarily due to decreased sales volume[207] - Revenue from the Thailand region decreased by $25.9 million, or 13$197.8 million in 2021 to $171.8 million in 2022, attributed to decreased sales to the public sector and currency depreciation[208] - The ROW region saw an increase in net sales from$171.848 million in 2021 to $184.723 million in 2022[200] Capital Expenditures and Investments - The company expects capital expenditures of$0.7 million in 2023, primarily for new equipment to expand production capacity in Australia and Thailand[142] - The company incurred principal capital expenditures of $3.7 million in 2022, down from$8.5 million in 2021 and $14.5 million in 2020[142] - APWC's investment in Asia Pacific New Energy Co. Ltd. (APNEC) increased by$3.9 million (NT$120 million) to fund renewable energy projects, including a fishery solar farm[158] Product Performance - In 2022, power cable revenue was$182.2 million, while enameled wire revenue was $178.1 million, indicating a strong performance in both product lines[148] - The company has established long-term contracts with copper suppliers, ensuring a stable supply of copper rods and cathodes, which are critical for production[174] - The company produces low voltage power cables with a capacity range of 1 to 3.3 kilovolts, used in commercial and residential buildings[166] - APWC's telecommunications cables include copper-based and fiber optic cables, designed for various internal and external environments[169] - APWC's enameled wires are used in various household appliances and small machinery, with sizes ranging from 0.02 mm to 4.00 mm in diameter[165] Shareholder and Dividend Information - APWC did not declare or pay any dividends for the years ended December 31, 2022, 2021, 2020, and 2019, and future dividends may be reduced or eliminated[120] - The ability to pay dividends is dependent on distributions from subsidiaries, which may be restricted by local laws and regulations[122] - As of December 31, 2021, approximately 80.9$1.00 per share to avoid delisting[109]