TORONTO, Feb. 14, 2013 /CNW/ - Sunwah International Limited,TSX: SWH (the "Company"), an Asian based financial services firm, announced today that it recorded a small profit for the three months ended December 31, 2012. All figures quoted are in U.S. dollars unless otherwise specified.
The Group (Sunwah International and its subsidiaries) reported net earnings of $0.3 million for the second quarter of its fiscal 2013 year, up significantly over last year (Q2 FY2012: loss of $0.3 million). The current quarter's earnings bring the year-to-date total to $0.5 million, representing an improvement over the equivalent period of Fiscal 2012. The Company's financial performance over last year reflects unrealized, mark-to-market gains in its proprietary investment portfolio of $3.3 million, up significantly from $1.9 million in Q2 FY2012, denoting an increase over the previous quarter as well (Q1 FY2013: $2.5 million).
Sunwah International is also pleased to report a solid increase in total revenues to $6.2 million (Q2 FY2012: $5.3 million), tallying $11 million for Fiscal 2013's first two quarters. Commission and fee income remained stable year-over-year at $2.5 million, totaling $4.4 million for the first two quarters of the current year. These figures compare respectively with $2.6 million and $6.6 million in Fiscal 2012 and reflect a drop in advisory fee income associated with the still relatively quiet IPO Market in Hong Kong.
Fiscal 2013's continued gains and the Company's enhanced performance over last year are the result of solid advances in the Hong Kong equity markets in line with improved investor sentiment globally as well as the successful implementation of Sunwah International's short-to-medium-term strategy of minimizing costs and focusing on its core strengths.
Financial highlights for Q2 Fiscal year 2013 include:
- Increase in profit to $0.3 million (Q2 FY2012: $0.3 million loss).
- Gain before tax of $1.1 million (Q2 FY2012: $0.2 million).
- Net increase of $3.3 million on the disposal and mark-to-market gains of financial assets/liabilities, up approximately 70% year-over-year (Q2 FY2012: 1.9 million).
- Commission and fee income of $2.5 million (Q2 FY2012: $2.6 million).
- Total revenues of $6.2 million (Q2 FY2012: $5.3 million).
- A decrease in general and administrative expenses to $4.8 million (Q2 FY2012: $5.3 million).
- Total equity attributable to owners of the Company increased to $48.1 million (December 31, 2012) from $47.6 million (September 30, 2012).
"Over the last year, Sunwah International has implemented a series of strategies for stabilizing earnings that in combination with improving global economic conditions have proven effective in enhancing performance. In addition to a focus on streamlining costs, we have strengthened our Capital Markets Group as evidenced by the revitalization of our Canadian subsidiary and our ongoing focus on business development activities in Hong Kong as markets show signs of recovery," said Douglas C. Betts, President and Chief Executive Officer of Sunwah International. "Hong Kong's stock markets have demonstrated solid gains as of late and we are cautiously optimistic that IPO markets will follow suit. This together with improving conditions associated with China's economic growth, a key element of our development strategy, are heartening and bode well for future earnings periods."
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. 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.
For more information on Sunwah International's second quarter operating results, please see the Management's Discussion and Analysis (MD&A), which is filed on SEDAR and is also available on the Company's website at www.sunwahinternational.com .
The Company did not propose any interim dividend for fiscal half year ended December 2012.
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 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.
SOURCE: Sunwah International Limited
For further information:
Kristen Humphrey, Sunwah International Group, (416) 888-2323, [email protected].