TORONTO, Feb. 14 /CNW/ - Kingsway International Holdings Limited
(TSX: KIH), a leading Hong Kong based provider of international financial
services, today reported its financial results for the second quarter ended
December 31, 2007. All figures are in U.S. dollars unless otherwise specified.
Kingsway International Holdings Limited ("Kingsway" or the "Company") and
its subsidiaries (collectively the "Group") showed significant improvement in
their fee generating activities compared to the same period last year.
Financial highlights for the second quarter include:
- Net income was $0.05 million, or $0.0006 per share, compared with
$5.16 million, or $0.064 per share, for the same period last year;
- Revenue from services and other income increased to $7.60 million
compared with $4.73 million for the same period last year;
- Loss from investment in marketable securities was $1.90 million
compared with gains of $4.97 million for the same period last year.
Financial Results for the Second Quarter
The Group reported total revenue for the second quarter of $5.71 million
compared with $9.70 million for the corresponding period last year. Revenue
from service and other income increased to $7.60 million from $4.73 million
for the second quarter of last year. The increase was attributable to an
increase in brokerage turnover and higher market volume in the period.
Realized and unrealized losses on investment in marketable securities was
$1.90 million compared with gain of $4.97 million for the corresponding
quarter last year, with the decrease primarily due to the high volatility in
Hong Kong market and global stock markets correction since November 2007.
Selling and administrative expenses increased 41% to $6.17 million from
$4.40 million for the same period in fiscal 2007. The increase was
attributable to higher variable staff cost resulting from higher operating
The Group recorded loss before income taxes and non-controlling interests
for the quarter of approximately $0.42 million compared with an income of
$7.75 million the same period last year. Net gain for the quarter was
$0.50 million, or $0.0006 per share, compared with $5.16 million, or
$0.064 per share for the same period last year.
The Company is in the process of developing a comprehensive business plan
to address the market opportunities presented by its unique position as a
globally focused Hong Kong based financial services firm with a presence both
in North America and in China. The company recognizes that in developing its
business plan it will need to access the capital markets in North America and
elsewhere and is developing a strategy to enhance shareholder value and
increase liquidity in its listed securities. While the equity markets in both
Asia and North America are currently in a state of some uncertainty,
management of the Company takes a long term view of the growth and business
opportunities presented by its unique position with a foot print in both North
America and Asia and believes that the Company is well positioned to benefit
from the dynamic growth of the markets in China and South East Asia.
About Kingsway International Holdings Limited
The Company is listed on the main board of the Toronto Stock Exchange
(TSX) under the symbol KIH. The Group is a leading middle tier financial
services provider, linking the global investment community with PRC's high
growth economy. In addition to engaging in proprietary investment activities,
the Group offers a variety of complementary, client focused services through
its corporate finance and capital markets, brokerage and asset management
Founded in 1990, the Group operates from offices in Hong Kong, Beijing,
Shanghai, Shenzhen, Sydney and Toronto.
Forward-Looking (Safe harbour) 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.
For further information:
For further information: Gary Quedado, Kingsway Group, (416) 861-3099
Ext. 238, email@example.com