TORONTO, Sept. 23, 2014 /CNW/ - Sunwah International Limited,TSX: SWH (the "Company"), an Asian based financial services firm, today announced its financial results for the year ended June 30, 2014. All figures quoted are in U.S. dollars.
Sunwah International and its subsidiaries (collectively "the Group") recorded a profit before tax of $1.0 million in Fiscal 2014, which compares year-over-year with a loss of $3.7 million. Despite rebounding financial markets globally, investor sentiment in Hong Kong and China was subdued throughout the Company's 2014 fiscal year, not picking up until late FY2014 and Q1 FY2015. This had a corresponding impact on Sunwah International's financial intermediary business, resulting in a net loss of $0.6 million in FY2014, which nevertheless marks a considerable improvement over last year's net loss of $3.5 million.
Total revenues jumped significantly to $20.5 million from $13.1 million in FY2013, demonstrating a strong increase in the value of the Group's proprietary investment portfolio to $5.3 million (FY2013: $1.6 million). This was attributable mainly to improved equity markets in Hong Kong relative to FY2013 and a revision of strategy that included the hiring of a new fund manager. Commission and fee income rose to $11.9 million from $8.6 million in FY2013 owing to Management's emphasis on focusing resources within its Capital Markets Group. In particular, fee income for IPOs and related preparatory work showed gains as did interest income for margin and IPO financing. In line with a continued focus on managing expenditures, general and administrative expenses increased appropriately to $17.9 million in FY2014 from $17.1 million in FY2013 alongside a solid increase in commission expenses associated with the Company's improved performance.
Sunwah International showed significant year-over-year advances in Fiscal 2014 as demonstrated by the return to profitability of its Capital Markets Group, spearheaded by HKEx-listed Sunwah Kingsway Capital Holdings Limited. Also of note, this division recently closed a rights offering, resulting in a considerably increased capital base moving into Fiscal 2015. This combined with improved financial markets in Asia and various initiatives in China to stimulate capital and equity market activity (including through recent regulatory changes and the introduction of the Shanghai Hong Kong Stock Connect Program) better positions the Group to capture increased business flows moving forward.
Financial highlights for Fiscal 2014 include:
- Income before tax of $1.0 million (FY2013: Loss of $3.7 million).
- Net loss of $0.6 million (FY2013: Net loss of $3.5 million).
- Total revenues of $20.5 million (FY2013: $13.1 million).
- Commission and fee income of $11.9 million (FY2013: $8.6 million).
- Net gain of $5.3 million on the disposal and mark-to-market gains of financial assets/liabilities (FY2013: $1.6 million).
- Interest and dividend income of $1.9 million (FY2013: $1.7 million).
- General and administrative expenses of $17.9 million (FY2013: $17.1 million).
"The Company achieved substantial operational and financial improvements in FY2014 as demonstrated by the positive returns of our Capital Markets Group, where we offer almost 25 years of experience and connections," said Douglas Betts, President and Chief Executive Officer of Sunwah International. "Moving into Fiscal 2015, we continue to actively fine-tune our business model through revenue diversification and the strengthening of our international reach. Along with improving markets and initiatives such as the Shanghai Hong Kong Stock Connect Program, our ability to quickly adapt to changes within China's marketplace is key to our success and unique ability to unite select international businesses with Asian strategic and institutional investors."
Sunwah International represents the financial services division of Sunwah Group, a highly reputable Asian based, international conglomerate.
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, including infrastructure and real estate, where the Company offers unique and targeted expertise as well as an extensive strategic investor network. Sunwah International is also focused on Malaysia, Vietnam and the Philippines, countries that are increasing in strength alongside China's development.
For more information on Sunwah International's year end 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.
The Company did not propose any dividend for the year ended June 30, 2014.
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. Sunwah International is uniquely positioned to capitalize on this demand and the global economic changes stemming from this shift, leveraging a 24-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 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.
This press release announcing the financial results for Sunwah International's fiscal year ended June 30, 2014 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 our 2015 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, [email protected] .