TORONTO, May 14, 2014 /CNW/ - Sunwah International Limited, TSX: SWH
(the "Company" or "Sunwah International"), an Asian based financial
services firm, today released its third quarter financial results,
announcing a small loss for the three months ended March 31, 2014. All
figures quoted are in U.S. dollars.
Sunwah International and its subsidiaries recorded a loss of $0.3
million for its third quarter as compared to a loss of $0.8 million in
last year's comparable period, bringing the year-to-date net loss to
$0.5 million. While the quarter's small deficit is mainly attributable
to lower increases relative to recent periods in the value of the
Company's proprietary investments, totaling $1.1 million, Sunwah
International remains committed to improving and diversifying these
returns as demonstrated by a significant year-over-year improvement (Q3
FY2013: $0.2 million) and year-to-date net portfolio gains of $5.5
Total revenues increased significantly in Q3 FY2014 to $4.2 million from
$2.8 million last year amid a gradually improving global economy and a
buoyant financing market in Hong Kong where the Company is
headquartered. Commission and fee income increased to $2.5 million and
$7.9 million for the current quarter and nine months to date of Fiscal
2014, which compares with $2.2 million and $6.6 million year-over-year.
Interest and dividend income also increased primarily as a result of
gains in the brokerage division's margin loans portfolio. General and
administrative expenses remained unchanged year-over-year despite the
increase in commission expenses owing to a continued emphasis on
Sunwah International is pleased to report a solid increase in activity
within its corporate finance division during the quarter following a
concerted effort to focus resources within this group. In particular,
the Company was able to capitalize on Hong Kong's solid financing
market, which saw funds raised on the Main Board of the Stock Exchange
of Hong Kong increase 158% to $22 billion from $9 billion in last
year's comparable nine-month period.
Financial highlights for Q3 Fiscal 2014 include:
Loss of $0.3 million (Q3 FY2013: Loss of $0.8 million).
50% year-over-year increase in total revenues to $4.2 million (Q3
FY2013: $2.8 million).
Quarterly corporate finance/capital markets revenues of $1.1 million (Q3
FY2013: $0.8 million).
20% increase in commission and fee income for the year to date (nine
months of FY2013: $6.6 million).
Higher interest and dividend income totaling $0.5 million for the
quarter (Q3 FY2013: $0.3 million).
Net gain of $1.1 million on the disposal of financial assets/liabilities
and remeasurement to fair value (Q3 FY2013: $0.2 million).
Decreased general and administrative expenses for the year-to-date of
$12.0 million (Nine months of Q3 FY2013: $12.1 million).
"Our improved operational performance this quarter follows a concerted
effort over recent periods to strengthen our corporate finance
business," said Douglas Betts, President and CEO of Sunwah
International. "In addition to solid increases in our advisory fee
income for IPOs and related work generated by our Hong Kong subsidiary,
we are now seeing unique new mandates in line with our strategic
positioning and ability to link Asian investors and partners with
Western businesses. We continue to develop our market niche and
As worldwide capital markets continue to improve, Sunwah International
is well positioned to capitalize on its unique expertise in bringing
Asian strategic investors and partners together with high quality
international investment opportunities, particularly coupled with an
increase in marketing and promotional efforts to support its new focus
and strengthened team.
For more information on Sunwah International's third 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
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 as the need for foreign suppliers of natural resources
to support growth in these regions increases. Sunwah International is
uniquely positioned to capitalize on this demand and the global
economic changes stemming from this shift, leveraging a 22-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 188. 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
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 2014 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