TORONTO, May 12, 2017 /CNW/ - Sunwah International Limited, TSX: SWH (the "Company"), an Asian based financial services firm, today announced its financial results for the period ended March 31, 2017. All figures quoted are in U.S. dollars.
Q3 FY2017 Financial Highlights:
- Net profit attributable to owners of the Company of $0.3 million (Q3 FY2016: Net loss attributable to owners $0.9 million)
- A substantial increase in total revenues to $5.5 million (Q3 FY2016: $2.9 million)
- Net gain of $2.0 million on the disposal and mark-to-market differences of financial assets/liabilities (Q3 FY2016: Net loss of $1.0 million)
- Commission and fee income of $2.6 million (Q3 FY2016: $3.2 million)
- Interest and dividend income of $0.6 million (Q3 FY2016: $0.6 million)
- General and administrative expenses of $4.2 million (Q3 FY2016: $4.3 million)
Sunwah International and its subsidiaries (collectively "the Group") reported a small profit attributable to owners of the Company of $0.3 million in the third quarter of Fiscal 2017, bringing the year-to-date net loss to $1.0 million up from a deficit of $2.9 million in the nine months of FY2016. A profit before tax of $1.2 million was recorded, contrasting with a loss of $1.5 million in Q3 FY2016.
The notable year-over-year improvement reflects gains within the Group's proprietary investment division with trading income totaling $2.0 million for the period against a loss of $1.0 million in last year's third quarter. This resulted in year-to-date net portfolio gains of $1.9 million versus a $3.7 million loss in the nine months of Fiscal 2016.
Commission and fee income decreased slightly to $2.6 million and $7.1 million for the current quarter and nine months to date against $3.2 million and $8.7 million in Fiscal 2016, the result of unusually lackluster capital market activity within Sunwah International's mid-market target segment. Interest and dividend income remained unchanged year-over-year at $0.6 million ($2.7 million for the nine months of FY2017). Selling and administrative expenses, including commission expenses, decreased slightly to $4.2 million from $4.3 million in last year's third quarter, corresponding with a dip in market activities and turnover.
Sunwah International's improved financial performance for the quarter and nine months of Fiscal 2017 is the result of significantly enhanced trading income in line with improved stock markets in Hong Kong and concerted efforts to diversify and expand its revenues. In addition to including a wider array of assets within its proprietary investment portfolio, the Company continues to focus on developing its investment property revenue and the enhancement of its fee-based income. In particular, the Group is focused on organic growth within its mainstay corporate finance, advisory and brokerage businesses as evidenced by its recent expansion into key up-and-coming regions throughout Asia.
"We are pleased with the improved financial performance for this quarter and the year-to-date as it demonstrates the viability of the strategies we have in place to remain competitive amid fluctuating markets," said Michael Choi, President and CEO. "In addition to focusing on stable returns within our proprietary trading portfolio, Sunwah International will continue to develop our Capital Markets Group by establishing first-mover advantage within promising new markets and strengthening our foothold within the PRC's IPO market, a lucrative area of business for us."
Sunwah International represents the financial services division of Sunwah Group, a highly reputable Asian based, international conglomerate.
For more information on Sunwah International's first 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 Hong Kong based financial services provider, focused on linking the international investment community with Asia's highest growth economic regions. 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.
Founded in 1990, Sunwah International represents the financial services division of Sunwah Group, one of Asia's most prominent multi-national conglomerates.
This press release announcing the financial results for Sunwah International's quarter ended March 31, 2017 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 the Company's 2017 objectives, its 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.