TORONTO, Sept. 20 /CNW/ - Kingsway International Holdings Limited
(TSX: KIH), a leading Hong Kong based provider of international financial
services, today reported its financial results for the fourth quarter and 2007
fiscal year ended June 30, 2007. All figures are in U.S. dollars unless
The financial performance for Kingsway International Holdings Limited
("Kingsway" or the "Company") and its subsidiaries (collectively the "Group")
for the fourth quarter were positively impacted by the continued strong market
in Hong Kong and the People's Republic of China ("PRC").
Financial highlights for the fiscal year include:
- Net income was $17.4 million, or $0.218 per share, compared with a
net loss of $3.4 million, or $0.043 per share, for the same period
- Revenue from services and other income increased to $19.6 million
compared with $17.9 million for the same period last year;
- Revenue from realized and unrealized gain on investment in marketable
securities increased to $36.4 million compared with $7.7 million for
the same period last year;
- Gain of $3.0 million realized on disposal of the Group's 50% interest
in investment properties in the year; and
- Gain of $1.1 million realized on disposal of the Group's public funds
management business in the year.
Financial Results for the Fourth Quarter
The Group reported total revenue for the fourth quarter of $30.5 million
compared with loss of $0.5 million for the corresponding quarter of fiscal
2006. Revenue from service and other income increased to $8.3 million from
$4.9 million for the fourth quarter of last year. The increase was
attributable to the revenue from sponsoring an initial public offering
transaction in the period. Realized and unrealized gain on investment in
marketable securities was $22.2 million compared to loss of $5.4 million for
the corresponding quarter last year, with the increase being attributable
primarily to the continued strength of the Hong Kong market.
The Group recorded income before income taxes, non-controlling interests
and discontinued operations for the quarter of approximately $19.6 million
compared to loss of $9.1 million a year ago. Net income for the quarter was
$8.6 million, or $0.107 per share, compared with a net loss of $6.0 million,
or $0.074 per share for the same period last year.
Financial Results for the Fiscal Year
Total revenue for the fiscal year increased to $56.0 million from
$25.6 million for the same period in fiscal 2006. Revenue from services and
other income increased to $19.6 million from $17.9 million for the same period
last year while the net realized and unrealized gain on investment in
marketable securities increased to $36.4 million from $7.7 million last year.
Selling and administrative expenses decreased 4% to $23.4 million from
$24.5 million for the same period in fiscal 2006. The decrease was
attributable to the recognition of exchange gain of $1.5 million as a result
of the appreciation of Chinese Renminbi.
In the fiscal year, the Group disposed of a 50% interest in Total Express
Investment Limited, the subsidiary company that held its interest in the
investment properties in Beijing and realized a gain of $3.0 million. The
Group also disposed of the public funds management business and made a gain of
For the fiscal year, the Group recorded income before income taxes,
non-controlling interests and income from discontinued operations of $17.4
million compared with a loss of $3.4 million a year ago.
At its board meeting of September 19, 2007, the Company declared a final
dividend for fiscal 2007 in the amount of C$0.02 per share that will be paid
on or about November 21, 2007.
The Company is currently reviewing both its operating strategy and
structure with a view to enhancing shareholder value and liquidity.
About Kingsway International Holdings Limited
The Company is listed on the main board of the Toronto Stock Exchange
(TSX) under the symbol KIH. The Group is a leading middle tier financial
services provider, linking the global investment community with PRC's high
growth economy. In addition to engaging in proprietary investment activities,
the Group offers a variety of complementary, client focused services through
its investment banking, brokerage and asset management divisions.
Founded in 1990, the Group operates from offices in Hong Kong, Beijing,
Shanghai, Shenzhen, Sydney and Toronto.
Forward-Looking (Safe harbour) Statements
This press release contains forward-looking statements that are based on
the beliefs of Management and reflect the Group's current expectations. In
certain cases, forward-looking information can be identified by the use of
words such as "estimate", "project", "belief", "anticipate", "intend",
"expect", "plan", "predict", "may", "should", "will," or variations of such
words and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be achieved."
Forward-looking information involves known and unknown risks, uncertainties
and other factors that may cause actual results, performance or achievements
to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking information. There
can be no assurance that forward-looking information will prove to be
accurate, as actual results and future events could differ materially from
those anticipated in such statements. Accordingly, investors should not place
undue reliance on forward-looking information. Forward-looking information is
provided as of the date of this press release, and the Company assumes no
obligation to update or revise them to reflect new events or circumstances.
For further information:
For further information: Gary Quedado, Kingsway Group, (416) 861-3099
Ext. 238, email@example.com