TORONTO, Nov. 13, 2017 /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, 2017. All figures quoted are in U.S. dollars.
Q1 FY2018 Financial Highlights:
- Net profit attributable to owners of the Company of $0.3 million (Q1 FY2017: Net profit of $22,000)
- Profit before tax of $1.1 million (Q1 FY2017: $0.5 million)
- A solid year-over-year increase in total revenues to $5.7 million (Q1 FY2017: $4.3 million)
- Net gain of $1.2 million on the disposal and mark-to-market differences of financial assets/liabilities (Q1 FY2017: Net gain of $1.2 million)
- Strong growth in commission and fee income to $3.6 million (Q1 FY2017: $1.9 million)
- Interest and dividend income of $0.8 million (Q1 FY2017: $1.1 million)
Sunwah International and its subsidiaries (collectively "the Group") recorded a net profit attributable to owners of the Company of $0.3 million in the first quarter of Fiscal 2018, which compares with a small profit of $22,000 last year. The increase is the result of solid growth in the Group's service revenues as well as strong gains in its proprietary investments portfolio alongside strategies to stabilize its investment returns.
Strong investor sentiment globally, including in Hong Kong and key parts of Asia where the Group is particularly active, contributed to a rise in total revenues for the period to $5.7 million from $4.3 million last year. Realized and unrealized mark-to-market gains in proprietary trading income remained steady relative to last year at $1.2 million while commission and fee income increased significantly to $3.6 million from $1.9 million in Q1 FY2017, reflecting respectable gains within the Group's brokerage division as well as an upsurge in advisory fee income. Selling and administrative expenses, including commission expenses, rose to $4.8 million from $3.9 million in last year's corresponding quarter, which was commensurate with the rise in total income.
Sunwah International's improved financial performance for the quarter reflects a shift in investment strategy within its proprietary trading division to an absolute return focus as well as efforts to strengthen the Group's fee based earnings, driven by its mainstay Capital Markets Group. In particular, the Company is focused on its international growth strategy and expansion into promising parts of Asia, giving it a first-mover advantage in these regions and positioning the Company to benefit from such initiatives as China's One Belt One Road project and the newly concluded Free Trade Agreement negotiations between Hong Kong and the Association of South East Asian Nations (ASEAN). Schemes such as these promote economic collaboration amongst Asian nations, resulting in new business opportunities and heightened trade and investment flow.
"We are encouraged by the Group's operational performance over the last several quarters and are pleased to see this translate into positive financial strides as evidenced by this period's results and the return to profitability of our proprietary investment division in Fiscal 2017," said Michael Choi, President and CEO. "The Company continues to target resources within our Capital Markets Group, and we are particularly excited by our expansion into several up-and-coming markets, which positions us to capitalize on new regulatory programs that enhance connectivity between key Asian economies."
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 period ended September 30, 2017 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 2018 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]