TORONTO, Nov. 11, 2016 /CNW/ - Sunwah International Limited,TSX: SWH (the "Company"), an Asian based financial services firm, today announced its financial results for the period ended September 30, 2016. All figures quoted are in U.S. dollars.
Q1 FY2017 Financial Highlights:
- Net profit attributable to owners of the Company of $22,000 (Q1 FY2016: Loss of $2.3 million).
- Profit before tax of $0.5 million (Q1 FY2016: Loss before tax of $5.1 million).
- Total revenues of $4.3 million (Q1 FY2016: Loss of $1.6 million).
- Net profit of $1.2 million on the disposal and mark-to-market differences of financial assets/liabilities (Q1 FY2016: Loss of $4.3 million).
- Commission and fee income of $1.9 million (Q1 FY2016: $2.1 million).
- Increase in interest and dividend income to $1.1 million (Q1 FY2016: $0.6 million).
- General and administrative expenses of $3.8 million (Q1 FY2016: $3.8 million).
Sunwah International and its subsidiaries (collectively "the Group") recorded a small profit attributable to owners of the Company of $22,000 in the first quarter of its 2017 financial year, which compares with a loss of $2.3 million in Q1 FY2016. A profit before tax of $0.5 million was reported for the period against a loss before tax of $5.1 million last year. This substantial year-over-year improvement was mainly attributable to gains within the Group's proprietary investment division as a result of improving stock markets in Hong Kong where a significant portion of Sunwah International's investment assets are concentrated.
Commission and fee income dropped slightly to $1.9 million in Q1 FY2017 from $2.1 million in last year's comparable quarter due mainly to reduced activity within the Group's brokerage division. This was in line with a 33% decrease in daily market turnover on the HKEx during the period relative to last year's first quarter. Interest and dividend income increased to $1.1 million from $0.6 million in Q1 FY2016. Selling and administrative expenses remained unchanged year-over-year at $3.8 million as a result of the lowering of commission expenses and adherence to strict cost controls.
While the Company's stronger financial performance during the quarter is mainly reflective of increases within its investment portfolio amid recovering equity markets, Sunwah International is also pleased with ongoing growth within its corporate finance and equity capital markets (ECM) division. In addition to higher service revenues over last year, the group continues to deliver solid operational results in line with a corporate strategy of amplifying its fee-based businesses and diversifying its revenue base. Also to this end, the Company is moving forward with its international expansion strategy, positioning itself to capitalize on strong growth in important developing economic regions by leveraging established relationships with key business partners. In particular, the Company has founded a representative office in Ho Chi Minh City, Vietnam, and is launching operations in the Guangdong Free Trade Zone in China.
"Sunwah International has implemented various strategies in recent reporting periods to enhance our earnings, which together with improving market conditions are proving effective," said Michael Choi, President and CEO. "In line with our commitment to creating a wider revenue base, we are looking to capitalize on robust emerging market growth, which along with many experts we expect to continue over the long term. This, combined with improving Asian markets and regulatory changes designed to facilitate capital flows from China to Hong Kong, makes us cautiously optimistic about our future prospects."
Sunwah International represents the financial services division of Sunwah Group, a highly reputable Asian based, international conglomerate.
For more information on Sunwah International's first quarter 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.
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 quarter ended September 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 the Company's 2017 objectives, its 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]