TORONTO, Feb. 14, 2013 /CNW/ - Sunwah International Limited, TSX: SWH
(the "Company"), an Asian based financial services firm, announced
today that it recorded a small profit for the three months ended
December 31, 2012. All figures quoted are in U.S. dollars unless
The Group (Sunwah International and its subsidiaries) reported net
earnings of $0.3 million for the second quarter of its fiscal 2013
year, up significantly over last year (Q2 FY2012: loss of $0.3
million). The current quarter's earnings bring the year-to-date total
to $0.5 million, representing an improvement over the equivalent period
of Fiscal 2012. The Company's financial performance over last year
reflects unrealized, mark-to-market gains in its proprietary investment
portfolio of $3.3 million, up significantly from $1.9 million in Q2
FY2012, denoting an increase over the previous quarter as well (Q1
FY2013: $2.5 million).
Sunwah International is also pleased to report a solid increase in total
revenues to $6.2 million (Q2 FY2012: $5.3 million), tallying $11
million for Fiscal 2013's first two quarters. Commission and fee
income remained stable year-over-year at $2.5 million, totaling $4.4
million for the first two quarters of the current year. These figures
compare respectively with $2.6 million and $6.6 million in Fiscal 2012
and reflect a drop in advisory fee income associated with the still
relatively quiet IPO Market in Hong Kong.
Fiscal 2013's continued gains and the Company's enhanced performance
over last year are the result of solid advances in the Hong Kong equity
markets in line with improved investor sentiment globally as well as
the successful implementation of Sunwah International's
short-to-medium-term strategy of minimizing costs and focusing on its
Financial highlights for Q2 Fiscal year 2013 include:
Increase in profit to $0.3 million (Q2 FY2012: $0.3 million loss).
Gain before tax of $1.1 million (Q2 FY2012: $0.2 million).
Net increase of $3.3 million on the disposal and mark-to-market gains of
financial assets/liabilities, up approximately 70% year-over-year (Q2
FY2012: 1.9 million).
Commission and fee income of $2.5 million (Q2 FY2012: $2.6 million).
Total revenues of $6.2 million (Q2 FY2012: $5.3 million).
A decrease in general and administrative expenses to $4.8 million (Q2
FY2012: $5.3 million).
Total equity attributable to owners of the Company increased to $48.1
million (December 31, 2012) from $47.6 million (September 30, 2012).
"Over the last year, Sunwah International has implemented a series of
strategies for stabilizing earnings that in combination with improving
global economic conditions have proven effective in enhancing
performance. In addition to a focus on streamlining costs, we have
strengthened our Capital Markets Group as evidenced by the
revitalization of our Canadian subsidiary and our ongoing focus on
business development activities in Hong Kong as markets show signs of
recovery," said Douglas C. Betts, President and Chief Executive Officer
of Sunwah International. "Hong Kong's stock markets have demonstrated
solid gains as of late and we are cautiously optimistic that IPO
markets will follow suit. This together with improving conditions
associated with China's economic growth, a key element of our
development strategy, are heartening and bode well for future earnings
Sunwah International's growth strategy focuses on China and parts of
Southeast Asia. Specifically, the Company is positioning itself to
capitalize on China's continued long-term potential and anticipated
solid growth in the industries affected most by its development,
particularly natural resources and infrastructure, where Sunwah
International offers unique and targeted expertise. The Company is
also focused on Malaysia, Vietnam and the Philippines, countries that
are increasing in strength in addition to being abundant in the
resources China needs most.
For more information on Sunwah International's second quarter operating
results, please see the Management's Discussion and Analysis (MD&A),
which is filed on SEDAR and is also available on the Company's website
at www.sunwahinternational.com .
The Company did not propose any interim dividend for fiscal half year
ended December 2012.
About Sunwah International Limited
Sunwah International is a strategically positioned asset-based financial
services provider, linking the global investment community with China's
high growth economy. Leveraging a 20-year track record and significant
relationships throughout Asia, Sunwah International is now positioned
into three integrated divisions: Capital Markets Group, consisting of
brokerage and financial services, including investment banking;
Strategic Investment Group, a merchant bank focused on mining and
natural resources; and our Asset Management Group specializing in
private equity funds. The organization's primary subsidiary, Sunwah
Kingsway Capital Holdings Limited is based in Hong Kong and listed on
The Stock Exchange of Hong Kong. The Sunwah Kingsway group of
companies comprises Sunwah International's primary operating
subsidiaries and is licensed to provide a range of financial services.
Sunwah International operates from six offices located in Hong Kong,
Beijing, Shanghai, Shenzhen, Macau and Toronto.
China is widely recognized as an increasingly important player on the
world's financial stage. As the country continues to grow, its
greatest needs will lie in energy and resources. Following a recent
restructuring, the Company is positioned as a middle tier provider of
financial services in these sectors and an opportunistic investor in
these and related sectors. Sunwah International's strategy is to use
investment activities strategically to generate advisory services
revenue while creating value for its shareholders through asset
Founded in 1990, the Company is listed on the main board of the Toronto
Stock Exchange under the symbol SWH.
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.
SOURCE: Sunwah International Limited
For further information:
Kristen Humphrey, Sunwah International Group, (416) 888-2323, firstname.lastname@example.org.