MWG Multi Ways Holdings Limited

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of October 2023

 

Commission File Number: 001-41669

 

Multi Ways Holdings Limited

 

3E Gul Circle

Singapore 629633

+65 6287 5252

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

 

Form 20-F ☒ Form 40-F ☐

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

 

Yes ☐ No ☒

 

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

 

 

 

EXHIBIT INDEX

 

Exhibit No.		Description
99.1		Interim Earnings Result for the six months ended 30 June 2023
99.2		Press Release - Multi Ways Holdings Announces First Half 2023 Unaudited Financial Results, Provides Corporate Updates

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	Multi Ways Holdings Limited
Date: October 31, 2023	By:	/s/ Lim Eng Hock
	Name:	Lim Eng Hock
	Title:	Chief Executive Officer and Director

 

 

Exhibit 99.1

 

Multi Ways Holdings Limited and Subsidiaries.

(Incorporated in Cayman Islands)

(Company Registration No.: CT-391248)

 

Interim Earnings Result for the six months ended

30 June 2023

 

 

Multi Ways Holdings Limited.
		Exhibit 99.1
First Half of Fiscal Year 2023		For the six months ended June 30, 2023

 

 

Multi Ways Holdings Limited announces revenue of $14.37 Million for the First Half of Fiscal Year 2023

 

Multi Ways Holdings Limited (“Multi ways” or the “Company”) (NYSE American: MWG), a leading supplier of a wide range of heavy construction equipment for sales and rental in Singapore and the surrounding region, today announced its unaudited financial results for the six months ended June 30, 2023.

 

Financial Highlights for the First Half of Fiscal Year 2023

 

		For the Six Months Ended June 30,
($ millions, except per share data)		2023				2022				% Change
Revenue		$	14.37			$	20.09				-28.48	%
Gross profit		$	4.29			$	5.60				-23.46	%
Gross margin			26.84	%			27.88	%			1.96	%
(Loss) / Income from operations		$	(4.65	)		$	1.57				-395.99	%
Operating margin			-32.34	%			7.81	%			-514.08	%
Net income (loss)		$	(4.75	)		$	1.36				-448.38	%
Diluted earnings per share		$	(0.15	)		$	0.05				-394.36	%
Net book value per share		$	0.54			$	0.26				27.90	%

 

	●	Revenue decreased 28.48% to $14.37 million for the six months ended June 30, 2023 from approximately $20.09 million for the six months ended June 30, 2022. The decreased was due to various factors, including the higher borrowing costs and tightening of bank loans for our customers and the greater competition in the procurement of high-demand machinery due to limited supplies that led to greater costs for the machinery.
	●	Gross profit decreased by 23.46% to $4.29 million. Gross margin was 29.84% for the six months ended June 30, 2023, compared to 27.88% for the six months ended June 30, 2022. The increased of gross profit was primarily due to increase in services, such as refurbishment, troubleshooting and repair services in Singapore.
	●	Losses from operations were $4.65 million for the six months ended June 30, 2023, compared to income from operations of $1.57 million for the six months ended June 30, 2022. The operating loss margin was 32.34% for the six months ended June 30, 2023, compared to 7.81% for the six months ended June 30, 2022. The decrease of operating margin was primarily due to the completion of the initial public offering, professional and advisory expenses, SEC registration fees, FINRA filing fees, NYSE America listing fees; increased in depreciation of plant and equipment and depreciation of rights-of-use assets.
	●	Net loss was $4.75 million for the six months ended June 30, 2023. This compared to net income of $1.36 million for the six months ended June 30, 2022.
	●	Net book value per share was $0.54 as of Jun 30, 2023, compared to $0.26 as of June 30, 2022.

 

 

Multi Ways Holdings Limited.
		Exhibit 99.1
First Half of Fiscal Year 2023		For the six months ended June 30, 2023

 

 

Financial Results for the First Half of Fiscal Year 2023

 

Revenue

 

Revenue decreased by $5,723,683 or 28.48%, to $14,370,806 for the six months ended June 30, 2023 from $20,094,489 for the six months ended June 30, 2022. The decrease was largely due to the decrease in demand from our largest customer in Australia in the amount of approximately $5.4 million of the total overall revenue during the six months ended June 30, 2023

 

Gross Profit

 

Our gross profit decreased by $1,314,550, or 23.46%, to $4,288,140 for the six months ended June 30, 2023 from $5,602,690 for the six months ended June 30, 2022. Gross profit margin was 29.84% for the six months ended June 30, 2023, as compared to 27.88% for the six months ended June 30, 2022. The increased of gross profit was primarily due to increase in service, such as refurbishment, troubleshooting and repair services in Singapore.

 

Selling and Distribution Expenses

 

We incurred $494,501 in selling and distribution expenses for the six months ended June 30, 2023, compared to $752,196 for the six months ended June 30, 2022. Selling and distribution expenses reduced by $257,695, or 34.18%, during the six months ended June 30, 2023 compared to the six months ended June 30, 2022. Such decrease was mainly attributable to the decrease in freight costs, which were in line with the decrease in our export sales..

 

General and Administrative expenses

 

We incurred $8,439,900 in general and administrative expenses for the six months ended June 30, 2023, compared to $3,280,324 for the six months ended June 30, 2022. General and administrative expenses increased by $5,159,576, or 157.29%, for the six months ended June 30, 2023 compared to the same period in 2022. The increase was primarily due to the completion of the initial public offering related expenses, increased in depreciation of plant and equipment and depreciation of rights-of-use assets.

 

Income (loss) from Operations

 

As a result of the factors described above, we incurred operating loss of $4,646,261 for the six months ended June 30, 2023, compared to operating income of $1,570,170 for the six months ended June 30, 2022, representing an overall decrease of operating income of $6,216,431.

 

Other Income (Expenses)

 

Interest expenses were $522,272 for the six months ended June 30, 2023, compared to interest expenses of $269,995 for the six months ended June 30, 2022. The increase of interest expense is primarily due to the increased of bank loan and interest rate during fiscal half year of 2023. Other income consists of gain on disposal of assets $ 125,290 and loss on foreign exchange $23,475 for the six months ended June 30, 2023.

 

Net Income (loss)

 

As a result of the factors described above, we incurred net loss of $4,744,056 for the six months ended June 30, 2023, compared to net income of $1,361,425 million for the six months ended June 30, 2022, representing a decrease in profit of $6,105,481.

 

 

Multi Ways Holdings Limited.
		Exhibit 99.1
First Half of Fiscal Year 2023		For the six months ended June 30, 2023

 

 

Financial Condition

 

As of June 30, 2023, cash and cash equivalents, restricted cash and short-term investments totalled $5.40 million, compared to $1.33 million as of December 31, 2022. Short-term bank borrowings were $11.27 million as of June 30, 2023, compared to $8.86 million as of December 31, 2022.

 

Accounts receivable was $7.73 million as of June 30, 2023, compared to $8.07 million as of December 31, 2022. Inventories were $33.93 million as of June 30, 2023, compared to $31.44 million as of December 31, 2022. Accounts payable was $28.38 million as of June 30, 2023, compared to $27.83 million as of December 31, 2022.

 

Total current assets and current liabilities were $51.65 million and $41.75 million, respectively, leading to a current ratio of 1.24 as of June 30, 2023. This compared to total current assets and current liabilities were $44.07 million and $41.19 million, respectively, and current ratio of 1.07 as of December 31, 2022.

 

About Multi Ways Holdings Limited.

 

Multi Ways Holdings supplies a wide range of heavy construction equipment for sales and rental in Singapore and the surrounding region. With more than two decades of experience in the sales and rental of heavy construction equipment business, the Company is widely established as a reliable supplier of new and used heavy construction equipment to customers from Singapore, Australia, UAE, Maldives, Indonesia, and the Philippines. With our wide variety of heavy construction equipment in our inventory and complementary equipment refurbishment and cleaning services, Multi Ways is well-positioned to serve customers as a one-stop shop.

 

For more information please visit www.multiwaysholdings.com. For further information on the Company’s SEC filings please visit www.sec.gov.

 

Safe Harbor Statement

 

This press release contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this press release and other statements made from time to time by us or our representatives might not occur.

 

 

Multi Ways Holdings Limited
		Exhibit 99.1
First Half of Fiscal Year 2023		For the six months ended June 30, 2023

 

 

MULTI WAYS HOLDINGS LIMITED AND SUBSIDIARIES

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND

COMPREHENSIVE INCOME

(Currency expressed in United States Dollars (“US$”))

 

		Six Months ended June 30,
		2023				2022
		$’000				$’000
Revenues, net			14,371				20,094
Cost of revenue			(10,083	)			(14,492	)
Gross profit			4,288				5,602
Operating cost and expenses:
Selling and distribution			(495	)			(752	)
General and administrative			(8,440	)			(3,280	)
Total operating cost and expenses			(8,935	)			(4,032	)
Profit from operations			(4,647	)			1,570
Other income (expense):
Gain from disposal of plant and equipment			125				-
Interest income			3				-
Interest expense			(522	)			(270	)
Dividend income			14				4
Government grant			17				74
Foreign exchange loss, net			(73	)			(50	)
Other income			350				313
Total other income, net			(86	)			71
Income before income taxes			(4,733	)			1,641
Income tax (expense) refund			(62	)			(279	)
NET INCOME			(4,795	)			1,362
Less: Net income attributable to non-controlling interest			50				-
NET INCOME ATTRIBUTABLE TO EQUITY HOLDER OF THE COMPANY			(4,745	)			1,362
Other comprehensive (loss) income:
Foreign currency translation adjustment			206				(150	)
COMPREHENSIVE INCOME			(4,539	)			1,212
Net income per share
Basic and Diluted			(0.15	)			0.05
Weighted average number of ordinary shares outstanding
Basic and Diluted			30,840				24,800

 

 

Multi Ways Holdings Limited
		Exhibit 99.1
First Half of Fiscal Year 2023		For the six months ended June 30, 2023

 

 

MULTI WAYS HOLDINGS LIMITED AND SUBSIDIARIES

UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS

(Currency expressed in United States Dollars (“US$”))

 

		June 30, 2023 $’000				Dec 31, 2022 $’000
ASSETS
Current assets:
Cash and cash equivalents			5,190				1,003
Accounts receivable, net			7,530				8,021
Inventories			33,927				31,442
Financial assets available for sales			208				325
Amounts due from related parties			200				50
Deposits, prepayments and other receivables			4,595				3,230
Total current assets			51,650				44,071
Non-current assets:
Property and equipment, net			7,894				7,218
Right-of-use assets			1,950				1,489
Deferred tax assets			8				8
Financial assets			2,200				-
Total non-current assets			12,052				8,715
TOTAL ASSETS			63,702				52,786
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities			6,687				4,781
Customer deposits			5,931				5,884
Amounts due to related parties			15,767				17,167
Bank borrowings			11,274				8,862
Lease liabilities			1,457				3,484
Income tax payable			632				1,007
Total current liabilities			41,748				41,185
Long-term liabilities:
Bank borrowings			2,321				3,175
Lease liabilities			2,860				2,114
Total long-term liabilities			5,181				5,289
TOTAL LIABILITIES			46,929				46,474
Shareholders’ equity
Ordinary share, par value US$0.00025, 400,000,000 shares authorized, 30,840,000 (24,800,000 31.12.2022) ordinary shares issued and outstanding			8				6
Additional paid-in capital			20,538				5,440
Retained earnings			(3,510	)			1,235
Non-controlling interest			(50	)			50
Accumulated other comprehensive loss			(213	)			(419	)
Total shareholders’ equity			16,773				6,312
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			63,702				52,786

 

 

Exhibit 99.2

 

 

Multi Ways Holdings Announces First Half 2023 Unaudited Financial Results, Provides Corporate Updates

 

Announces Expansion of Operations in Indonesia

 

NEW YORK, NY, November X, 2023 (GlobeNewswire) — Multi Ways Holdings Limited (“Multi Ways” or the “Company”) (NYSE American: MWG), a leading supplier of a wide range of heavy construction equipment for sales and rental in Singapore and the surrounding region, today announces first half 2023 unaudited financial results and provides corporate updates.

 

Mr. James Lim, Chairman and Chief Executive Officer of Multi Ways, commented, “In the first half of 2023, we navigated a challenging landscape marked by higher borrowing costs, intensified competition, and shifting buyer preferences. Despite a decrease in net revenue, it’s noteworthy that our gross profit margin improved to 29.8%, demonstrating our commitment to operational efficiency. We’ve also observed a growing trend of buyers opting for rentals, which account for 14.7% of our revenue. While our net income decreased in the first half of 2023, we have proactively adapted to these market dynamics to ensure the sustainability of our business for the rest of the year.”

 

“Looking ahead to 2024, several recent announcements related to major infrastructure projects commencing construction next year leave us optimistic about the future of our business, including the Cross Island Line interchange stations Clementi and King Albert Park that are expected to start in the first quarter of 2024, as well as the planned Marina Bay Sands resort expansion that’s expected to start by April 2024. In addition, our new branch office in Batam will provide us with another strong sales channel in an emerging market.”

 

“We remain dedicated to delivering value to our shareholders, customers, and employees, and are confident in our ability to navigate any challenges and seize the opportunities that lie ahead,” concluded Mr. Lim.

 

First Half 2023 Financial Highlights

 

●

For the six months ended June 30, 2023, our net revenue decreased 28.4% to $14.4 million, compared to $20.1 million for the six months ended June 30, 2022. The decrease in net revenue was largely due to several factors, including:

 

○

Higher borrowing costs and tightening of bank loans for our customers.

 

 

	○	Greater competition in the procurement of high-demand machinery due to limited supplies has led to greater costs for machinery.
	○	Buyers being more cautious and opting for rentals – rental revenue as a percentage of total revenue increased to 14.7% in the first half of 2023 versus 10.3% in the first half of 2022.

 

	●	Gross profit was approximately $4.3 million, with a 29.8% profit margin, for the first six months of 2023, compared with gross profit of $5.6 million, with a 27.9% profit margin for the first six months of 2022.
	●	Net loss was approximately $4.7 million for the first six months of 2023, compared with a net income of $1.4 million for the first six months of 2022.

 

Cash Flows Summary

 

	●	Cash and cash equivalents were approximately $5.2 million as of June 30, 2023, compared to approximately $1.0 million as of June 30, 2022.
	●	Cash used in operating activities for the six months ended June 30, 2023, was approximately $7.8 million, compared to cash provided by operating activities of approximately $0.5 million for the six months ended June 30, 2022.
	●	Cash used in investing activities for the six months ended June 30, 2023, was $1.6 million, an increase of $1.2 million compared to cash used in investing activities of $0.4 million for the six months ended June 30, 2022, primarily consisting of purchases of property, plant and equipment and investment and proceeds from the disposal of property and equipment.
	●	Cash provided by financing activities for the six months ended June 30, 2023, was approximately $13.5 million, compared to approximately $0.7 million for the six months ended June 30, 2022. On April 5, 2023, the Company completed its initial public offering, which generated gross proceeds of $15.1 million before deducting any underwriting discounts or expenses.

 

Branch Opening in Indonesia

 

Multi Ways has recently submitted paperwork with local authorities to open a branch office in Batam, in the province of Riau Islands, Indonesia, consistent with our intent to expand our presence in the Indonesian market and harness Batam’s growing pool of skilled labor. Batam’s strategic location provides efficient import and export capabilities, positioning it as an invaluable hub for businesses like Multi Ways, engaged in international trade. Multi Ways will transfer cranes from Singapore to Batam, which, although no longer operational in Singapore, can be repurposed for trading or renting in Batam.

 

 

About Batam

 

Located an hour’s ferry ride from Singapore, Batam is considered a Free Trade Zone (FTZ) within the Riau Islands Province, which also includes the islands of Bintan and Karimun and is the most developed part of the Riau Islands Province, constituting 80% of the population and contributing to 73% of the local economy. The main economic activities in the region include manufacturing, the digital economy, and maintenance, repair, and overhaul (MRO). Multinational corporations such as Schneider Electric and Pegatron have located production bases in Batam to enjoy FTZ benefits and connectivity to Singapore. The local government in Batam is committed to transforming the region into a major city, with plans for infrastructure projects such as road improvements, building new roads and public facilities, and expanding the local airport.

 

About Multi Ways Holdings Limited

 

Multi Ways Holdings supplies a wide range of heavy construction equipment for sales and rental in Singapore and the surrounding region. With more than two decades of experience in the sales and rental of heavy construction equipment business, the Company is widely established as a reliable supplier of new and used heavy construction equipment to customers from Singapore, Australia, UAE, Maldives, Indonesia, and the Philippines. With our wide variety of heavy construction equipment in our inventory and complementary equipment refurbishment and cleaning services, Multi Ways is well-positioned to serve customers as a one-stop shop. For more information, visit www.multiwaysholdings.com.

 

Safe Harbor Statement

 

This press release contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this press release and other statements made from time to time by us or our representatives might not occur.

 

Investor Relations Contact:

 

Matthew Abenante, IRC

President

Strategic Investor Relations, LLC

Tel: 347-947-2093

Email: matthew@strategic-ir.com

 

 

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