TORONTO, Sept. 18, 2015 /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, 2015. All figures quoted are in U.S. dollars.
Sunwah International and its subsidiaries (collectively "the Group") recorded a loss before tax of $0.5 million in Fiscal 2015 against a profit before tax of $1.0 million last year. Net loss attributable to owners of the Company of $1.6 million was recorded for the period, comparing with $0.6 million in FY2014. While the performance of the first nine months of FY2015 had a marginal decline, the Company is pleased to report an increase in trading income in its fourth quarter, totaling $5.2 million for Q4. This combined with a net gain of $2 million within the Group's proprietary investments portfolio has resulted in positive income contributed by Sunwah International's Capital Markets Group.
Commission and fee income rose modestly to $12 million in FY2015 compared to $11.9 last year in line with a slight increase in market activities. In particular, fee income from IPOs and related preparatory work showed strength as did interest income for margin and IPO financing. Interest and dividend income increased to $2.4 million from $1.9 million in FY2014, primarily attributable to gains in the brokerage division's margin loans portfolio. Selling and administrative expenses decreased to $17.3 million year-over-year (FY2014: $17.9 million) in proportion to the overall movement in revenue.
In Fiscal 2015, Sunwah International continued with concerted efforts to strengthen its Capital Markets Group, demonstrating operational improvements as well as continued profitability within this business. In addition to an improved performance from its brokerage group, which saw a satisfactory increase in commission and fee income from $5.4 million to $5.9 million in FY2015, the Company's equity capital markets (ECM) activities took on a renewed vibrancy during the year, fulfilling numerous placing transactions (and doubling placing income) while also completing a variety of underwriting and advisory service mandates. This group was bolstered by enhanced investor sentiment during the year and the enactment of significant regulatory changes designed to support strong Asian financial markets in the longer term.
Financial highlights for Fiscal 2015 include:
- Loss before tax of $0.5 million (FY2014: Income before tax of $1 million).
- Loss attributable to owners of the Company of $1.6 million (FY2014: $0.6 million).
- Total revenues of $16.3 million (FY2014: $20.5 million).
- Commission and fee income of $12 million (FY2014: $11.9 million).
- Net gain of $2 million on the disposal and mark-to-market gains of financial assets/liabilities (FY2014: $5.3 million).
- Interest and dividend income of $2.4 million (FY2014: $1.9 million).
- General and administrative expenses of $17.3 million (FY2014: $17.9 million).
"Key areas of concentration for Sunwah International in FY2015 included the augmentation of our fee-based business and a focus on increasing shareholder value. To these ends, we are satisfied with the achievements by our Capital Markets Group, particularly our corporate finance/ECM business, and are also pleased that the Company's share price is more reflective of its true underlying value," said Douglas Betts, President and CEO. "As we embark on FY2016, we will continue to seek revenue diversification and the strengthening of our stabilized fee generating prospects in order to help stabilize future earnings and generate longer term shareholder returns amid uncertain markets."
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.
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, 2015.
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, 2015 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 2016 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]