TORONTO, Sept. 21, 2016 /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, 2016. All figures quoted are in U.S. dollars.
FY2016 Financial Highlights:
- Net loss attributable to owners of the Company of $5.1 million (FY2015: Loss of $1.6 million).
- Loss before tax of $10.3 million (FY2015: Loss before tax of $0.5 million).
- Total revenues of $8.0 million (FY2015: $16.3 million).
- Commission and fee income of $11.0 million (FY2015: $12.0 million).
- Increase in interest and dividend income to $2.6 million (FY2015: $2.4 million).
- Net loss of $4.3 million for the year on the disposal and mark-to-market differences of financial assets/liabilities (FY2015: net gain of $2.0 million).
- General and administrative expenses of $17.7 million (FY2015: $17.3 million).
Sunwah International and its subsidiaries (collectively "the Group") recorded a net loss attributable to owners of the Company of $5.1 million in Fiscal 2016, comparing with a loss of $1.6 million in FY2015. A loss before tax of $10.3 million was reported for the 12-month period against a loss before tax of $0.5 million in FY2015. The deficit was attributable to both realized and unrealized mark-to-market losses within the Group's proprietary investment division as a result of Hong Kong experiencing its most extreme market volatility in recent history during the period. Sunwah International's investment assets are primarily concentrated in Hong Kong where the organization is based.
Commission and fee income dipped only slightly to $11.0 million from $12.0 million in FY2015 due to a small decrease in market activity and reduced institutional trading volumes from its brokerage division. Interest and dividend income increased to $2.6 million from $2.4 million in FY2015, primarily attributable to an increase in debt securities interest income. Selling and administrative expenses increased year-over-year to $17.7 million from $17.3 million owing to impairment losses for account receivables, which were insignificant last year, totaling $1.0 million.
Against the year's precarious conditions, which saw the Hang Seng Index touch a 7-year high of 28,433 in April 2015 before hitting a recent low of 18,320 in February 2016, Sunwah International concentrated efforts within its flagship corporate finance and equity capital markets (ECM) operations. This group delivered a solid operational performance, resulting in continued profitability and an increase in commission and fee-based revenue over last year. Sunwah International intends to continue with this strategy of amplifying its service revenues in Fiscal 2017 while also maintaining a focus on diversifying its investment portfolio to deliver steadier returns. Amid improving investor sentiment and recent equity market gains in Hong Kong, the Company is positioned to take on increased transaction volumes within its corporate finance/ECM group and to capitalize on regulatory changes designed to increase capital inflows from China.
"Fiscal 2016 was a difficult year for all. Against exceedingly unpredictable markets, however, we continued to see stability within our service based businesses, particularly our corporate finance/ECM division," said Michael Choi, President and CEO. "In Fiscal 2017, while proceeding prudently throughout these uncertain times, we will continue to define our unique niche and capitalize on our fee generating prospects while seeking revenue diversification in order to help stabilize earnings during times of market uncertainty."
Sunwah International represents the financial services division of Sunwah Group, a highly reputable Asian based, international conglomerate.
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, 2016.
About Sunwah International Limited
Sunwah International Limited (TSX: SWH) is a Hong Kong based financial services provider, focused on linking the international investment community with Asia's highest growth economic regions. 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.
Founded in 1990, Sunwah International represents the financial services division of Sunwah Group, one of Asia's most prominent multi-national conglomerates.
This press release announcing the financial results for Sunwah International's fiscal year ended June 30, 2016 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]