TORONTO, Nov. 14, 2013 /CNW/ - Sunwah International Limited,TSX: SWH (the "Company"), an Asian based financial services firm, today released its financial results for the first quarter ended September 30, 2013, reporting a small profit. All figures quoted are in U.S. dollars unless otherwise specified.
The Group (Sunwah International and its subsidiaries) recorded net earnings of $0.1 million for the first three months of its fiscal 2014 year. While down slightly year-over-year from $0.2 million in Q1 FY2013, this figure represents a significant improvement over recent periods owing to a solid increase in the Company's service revenues as well as strong gains in its proprietary investments portfolio.
Improved investor sentiment globally, including in Hong Kong and China where the Company is particularly focused, contributed to a rise in total revenues for the period to $5.4 million from $4.8 million last year. Commission and fee income increased to $2.3 million in the current quarter against $1.9 million last year, reflecting pronounced gains within the Group's brokerage division as well as a boost in advisory fee income and higher margin/IPO financing revenues. The Company is also pleased to report substantial unrealized mark-to-market gains in its proprietary investments of $2.8 million, which contrasts with $1.2 million in the first quarter of Fiscal 2013, as a result of the improved performance of its Hong Kong equity portfolio and an emphasis on diversifying these revenues. General and administrative expenses, including commission expenses, remained stable at $4.3 million on account of an ongoing emphasis on managing expenditures.
Sunwah International's improved performance during the quarter also reflects increased activity within the Group's corporate finance division, including a notable increase in IPO sponsorship and underwriting and placing transactions. In addition, the Company is positioning itself to participate on a more global level through the recent strengthening of its international advisory services group, in particular its Canadian team, in order to capitalize on its unique expertise in bringing Asian strategic investors together with high quality international assets.
Financial highlights for Q1 Fiscal 2014 include:
- Profit of $0.1 million (Q1 FY2013: $0.2 million).
- Gain before tax of $0.6 million (Q1 FY2013: $0.6 million).
- Net gain of $2.8 million on the disposal of financial assets/liabilities and remeasurement to fair value (Q1 FY2013: $1.2 million).
- Commission and fee income of $2.3 million (Q1 FY2013: $1.9 million).
- A 35% increase in brokerage revenues to $1.5 million (Q1 FY2013: $1.1 million).
- Total revenues of $5.4 million, up from $4.8 million in Q1 FY2013.
- General and administrative expenses of $4.3 million (Q1 FY2013: $4.3 million).
"We are relatively satisfied with this quarter's results as they demonstrate the viability of our strategy to target areas where we excel, which is within our Capital Markets Group where we offer over 20 years of expertise, while at the same time minimizing costs" said Douglas Betts, President and Chief Executive Officer of Sunwah International. "Moving forward, we will proceed with the current tactics in place to continue to streamline costs and capitalize on our core strengths. In particular, we are focused on our international advisory services division and its expertise in uniting select investment opportunities worldwide with Asian capital, leveraging our broad strategic investor network, our extensive knowledge of international and Asian capital markets, and our status as a Sunwah Group company."
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, particularly natural resources and infrastructure, where Sunwah International offers unique and targeted expertise as well as an extensive strategic investor network. The Company is also focused on Malaysia, Vietnam and the Philippines, countries that are increasing in strength in addition to being abundant in the resources China needs most.
About Sunwah International Limited
Sunwah International is a strategically positioned asset-based financial services provider, linking the global investment community with China's high growth economy. Leveraging a 20-year track record and significant relationships throughout Asia, Sunwah International is now positioned into three integrated divisions: Capital Markets Group, consisting of brokerage and financial services, including investment banking; Strategic Investment Group, a merchant bank focused on mining and natural resources; and our Asset Management Group specializing in private equity funds. The organization's primary subsidiary, Sunwah Kingsway Capital Holdings Limited is based in Hong Kong and listed on The Stock Exchange of Hong Kong. The Sunwah Kingsway group of companies comprises Sunwah International's primary operating subsidiaries and is licensed to provide a range of financial services. Sunwah International operates from six offices located in Hong Kong, Beijing, Shanghai, Shenzhen, Macau and Toronto.
China is widely recognized as an increasingly important player on the world's financial stage. As the country continues to grow, its greatest needs will lie in energy and resources. Following a recent restructuring, the Company is positioned as a middle tier provider of financial services in these sectors and an opportunistic investor in these and related sectors. Sunwah International's strategy is to use investment activities strategically to generate advisory services revenue while creating value for its shareholders through asset accumulation.
Founded in 1990, the Company is listed on the main board of the Toronto Stock Exchange under the symbol SWH.
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 2014 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 Group, (416) 888-2323, [email protected]