TORONTO, Nov. 26 /CNW/ - Kingsway International Holdings Limited
(TSX: KIH), a leading Hong Kong based provider of international financial
services, today reported its financial results for the first quarter ended
September 30, 2007. All figures are in U.S. dollars unless otherwise
Kingsway International Holdings Limited ("Kingsway" or the "Company") and
its subsidiaries (collectively the "Group") showed significant improvement in
their financial performance in the first fiscal quarter compared to the same
period last year.
Financial highlights for the first quarter include:
- Net loss was $0.001 million, or $0.000 per share, compared with a
net loss of $3.275 million, or $0.041 per share, for the same period
- Revenue from services and other income increased to $6.5 million
compared with $2.9 million for the same period last year;
- Revenue from realized and unrealized gains on investment in
marketable securities was $3.8 million compared with a loss of
$3.6 million for the same period last year; and
- Gain of $1.4 million realized on disposal of the Group's interest in
Golden China Management Inc. ("GCMI"), a 70% owned subsidiary.
Financial Results for the First Quarter
The Group reported total revenue for the first quarter of $10.3 million
compared with loss of $0.7 million for the corresponding quarter last year.
Revenue from service and other income increased to $6.5 million from
$2.9 million for the first quarter of last year. The increase was attributable
to higher market volume in the period. Realized and unrealized gains on
investment in marketable securities was $3.8 million compared with a loss of
$3.6 million for the corresponding quarter last year, with the increase being
attributable primarily to the continued strength of the Hong Kong market.
On August 7, 2007, the Group's interest in GCMI was disposed of and a
gain of US$1.4 million was realized. GCMI had a management services agreement
to manage Golden China Resources Corporation, a publicly traded investment
vehicle launched by the Group during 2005.
Selling and administrative expenses increased 72% to $6.7 million from
$3.9 million for the same period in fiscal 2007. The increase was attributable
to higher variable staff cost resulting from higher operating revenue.
The Group recorded income before income taxes and non-controlling
interests for the quarter of approximately $3.9 million compared with a loss
of $5.1 million the same period last year. Net loss for the quarter was
$0.001 million, or $0.000 per share, compared with $3.275 million, or $0.041
per share for the same period last year.
At its board meeting of September 19, 2007, the Company declared a final
dividend for fiscal 2007 in the amount of C$0.02 per share that will be paid
on or about November 21, 2007.
The Company is currently reviewing both its operating strategy and
structure with a view to enhancing shareholder value and liquidity.
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 investment banking, brokerage and asset management divisions.
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, firstname.lastname@example.org