TORONTO, Feb. 5, 2016 /CNW/ - Sunwah International Limited, TSX: SWH (the "Company"), an Asian based financial services firm, today announced its financial results for the quarter ended December 31, 2015. All figures quoted are in U.S. dollars.
Q2 FY2016 Highlights:
- Net profit attributable to owners of the Company of $0.3 million (Q2 FY2015: loss of $1.8 million).
- Gain before tax of $1.1 million (Q2 FY2015: loss of $2.9 million).
- Net gain of $1.6 million on the disposal and mark-to-market gains of financial assets/liabilities (Q2 FY2015: loss of $1.7 million).
- Commission and fee income of $3.4 million (Q2 FY2015: $2.7 million).
- Interest and dividend income of $0.6 million (Q2 FY2015: $0.5 million).
- General and administrative expenses of $4.8 million (Q2 FY2015: $4.4 million).
Sunwah International and its subsidiaries (collectively, the "Group") recorded a net profit attributable to owners of the Company of $0.3 million in the second quarter of Fiscal 2016 against a loss of $1.8 million in last year's comparable quarter, resulting in a year-to-date shortfall of $2 million (FY2015: loss of $2.7 million). A gain before tax of $1.1 million was recorded for the period, contrasting with a loss of $2.9 million in Q2 of FY2015.
Despite uncertain global markets, Sunwah International is pleased to report substantial gains in trading income, totaling $1.6 million, which compares with a loss of $1.7 million in last year's second quarter, the result of a continued emphasis on diversifying its investment portfolio and an upswing in the Hong Kong and China capital markets in October. Further contributing to the Group's improved earnings this period, commission and fee income grew to $3.4 million, up from $2.7 million in Q2 of FY2015, due in particular to a solid performance from Sunwah International's corporate finance/equity capital market (ECM) division amid lower markets. The Group also saw an increase in interest and dividend income to $0.6 million from $0.5 million as a result of gains in the brokerage division's margin loans portfolio. Selling and administrative expenses increased slightly year-over-year to $4.8 million from $4.4 million in line with the increase in commission income.
Sunwah International's improved financial performance this quarter was the result of ongoing efforts to stabilize its revenue base in order to successfully weather market volatility. To this end, as mentioned the Group continued to diversify its proprietary investment portfolio by including a wider array of assets in its mix. As well, the Company increased its investment property revenue to produce more stable returns while also maintaining a focus on amplifying its steady fee based income in Q2 FY2016, resulting in solid ECM activity and a push in securing advisory service mandates.
"We are pleased with the results we are now seeing as a result of targeted efforts to produce steadier revenue flow. In addition to satisfactory returns from our proprietary investments, Sunwah International continues to see strength and improvement within our fee based businesses, namely our ECM and corporate finance groups where we experienced a strong increase in revenue this quarter," said Michael Choi, Chief Executive Officer of Sunwah International. "For the second half of Fiscal 2016 our strategy will remain the same: We will continue to steer the Group with caution as we navigate uncertain markets, focusing on producing stable returns through revenue diversification and targeting resources where we excel."
Sunwah International represents the financial services division of Sunwah Group, a highly reputable Asian based, international conglomerate.
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, including infrastructure and real estate, where the Company offers unique and targeted expertise as well as an extensive strategic investor network.
For more information on Sunwah International's second quarter operating results, please see the Management's Discussion and Analysis (MD&A) and compete financial statements, which are filed on SEDAR and also available on the Company's website at www.sunwahinternational.com.
About Sunwah International Limited
Sunwah International Limited (TSX: SWH) is a strategically positioned asset-based financial services provider, linking the global investment community with China's high growth economy. Founded in 1990 and backed by prominent Hong Kong based conglomerate, Sunwah Group, a key element of the Company's growth strategy involves identifying and advancing select international opportunities that are poised to benefit from proliferating consumerism in China and development in key areas of Southeast Asia. Sunwah International is uniquely positioned to capitalize on this demand and the global economic changes stemming from this shift, leveraging a 25-year track record and an extensive relationship/strategic investor network throughout Asia. The Company operates from six offices located in Hong Kong, Beijing, Shanghai, Shenzhen, Macau and Toronto.
The organization's primary Hong Kong based subsidiary, Sunwah Kingsway Capital Holdings Limited, is listed on the Stock Exchange of Hong Kong under the stock code 00188. Sunwah Kingsway is licensed to provide a range of financial solutions in Hong Kong and abroad that include award-winning brokerage services and innovative corporate finance offerings.
This press release announcing the financial results for Sunwah International's fiscal quarter ended December 31, 2015 should be read in conjunction with the audited consolidated financial statements and management's discussion and analysis of Sunwah International Limited (the "Company") and its subsidiaries. This press release contains "forward-looking statements" as defined under applicable Canadian securities laws. These statements include, but are not limited to, statements made concerning our 2016 objectives, our strategies to achieve those objectives, as well as statements with respect to management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plan" or "continue", or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. 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.
Except as required by applicable law, management and the board of directors of the Company (the "Board of Directors") undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE Sunwah International Limited
For further information: Kristen Humphrey, Sunwah International Limited, (416) 888-2323, firstname.lastname@example.org.