Sunwah International Reports Third Quarter Results

TORONTO, May 14, 2013 /CNW/ - Sunwah International Limited, TSX: SWH (the "Company"), an Asian based financial services firm, today announced its financial results for the three months ended March 31, 2013.  All figures quoted are in U.S. dollars unless otherwise specified.

Sunwah International and its subsidiaries (collectively "the Group") reported a net loss of $0.8 million for its third quarter (Q3 FY2012: $1.5 million), resulting in a net loss of $0.3 million for the first nine months of Fiscal 2013 compared to a net loss of $9.5 million for the same period last year.  The current period's results reflect modest, unrealized mark-to-market gains in the Group's proprietary investment portfolio of $0.2 million and $4.7 million for the nine months of Fiscal 2013, which compare respectively with a gain of $0.6 million and a loss of $9.9 million in Fiscal 2012.

Revenue from the Group's fee based services remained relatively stable year-over-year, although reduced capital markets activity in Hong Kong and globally continued to restrict the Group's earnings.  Commission and fee income of $2.2 million was recorded for the third quarter of FY2013 (Q3 FY2012: $1.9 million), bringing the total for the nine months of Fiscal 2013 to $6.6 million.  General and administrative expenses totaled $4.1 million for the quarter and $13.3 million for the nine months to date, down from $4.8 million and $16.5 million respectively in Fiscal 2012, as a result of a focus on streamlining costs.

While this quarter's earnings mark thinner advisory fee and interest (IPO financing and margin financing) income associated with the still recovering IPO market and lower trading volumes in Hong Kong, Sunwah International's Capital Markets Group continues to actively expand its geographic reach and focus.  In addition to restructuring and strengthening its Canadian operations, the Group's Hong Kong based subsidiary initiated business development efforts in various foreign markets.

Financial highlights for Q3 Fiscal 2013 include:

  • Net loss of $0.8 million compared with a year-over-year loss of $1.5 million.
  • Year-to-date net loss of $0.3 million (nine months of FY2012: net loss of $9.5 million)
  • Net increase of $0.2 million on the disposal and mark-to-market gains of financial assets/liabilities (Q3 FY2012: $0.6 million)
  • Year-to-date net increase of $4.7 million on the disposal and mark-to-market gains of financial assets/liabilities (Q3 FY2012: loss $9.9 million).
  • Commission and fee income of $2.2 million (Q3 FY2012: $1.9 million).
  • Total revenues of $2.8 million (Q3 FY2012: $3.3 million).
  • A decrease in general and administrative expenses to $4.1 million (Q3 FY2012: $4.8 million).

"Alongside improved equity markets in Hong Kong and abroad during recent quarters, Sunwah International continues to position itself to capitalize on new opportunities arising from the needs of China and other Southeast Asian nations," said Douglas Betts, President and Chief Executive Officer of Sunwah International. "As well, in addition to cost effectively strengthening our on-the-ground presence, our Capital Markets Group continues to successfully explore various means of diversification into new markets, which combined with improving signs relative to China's economy bode well for our growth prospects."

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 .

Dividends

The Company did not propose any interim dividend for the period ended March 31, 2013.

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 accumulation. 

Founded in 1990, the Company is listed on the main board of the Toronto Stock Exchange under the symbol SWH. 

Forward-Looking 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.

SOURCE: Sunwah International Limited

For further information:

Kristen Humphrey, Sunwah International Group, (416) 888-2323, khumphrey@sunwahinternational.com .


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