TORONTO, Nov. 13, 2014 /CNW/ - Sunwah International Limited,TSX: SWH (the "Company"), an Asian based financial services firm, today announced its financial results for the quarter ended September 30, 2014. All figures quoted are in U.S. dollars.
The Group (Sunwah International and its subsidiaries) recorded a net loss of $0.8 million in the first quarter of its 2015 fiscal year against a small gain of $0.1 million in last year's comparable period. The quarter's deficit is the result of unrealized mark-to-market losses in the value of the Group's proprietary investments portfolio of $0.9 million, attributable to a sharp decline in Hong Kong equity markets at the end of the quarter.
Sunwah International's commission and fee income increased to $2.9 million in the current quarter compared to $2.3 million year-over-year. This increase in service revenues is the result of improving capital markets globally, including in Hong Kong and China, as well as efforts over the past year to enhance the Company's fee-generating business, in particular its Capital Markets Group. In addition to a rise in advisory fee income, interest and dividend income increased during the quarter primarily as a result of gains in the brokerage division's margin loans portfolio. General and administrative expenses were down slightly to $4.2 million in Q1 FY2015 versus $4.3 million last year – the result of strict cost controls and a continued emphasis on maximizing efficiencies.
As touched upon above, Sunwah International was negatively impacted by a bout of intense investor uncertainty at period's end (as evidenced by an acute dip in the Hang Seng Index late September) resulting in this quarter's loss. Nevertheless, the Company performed adequately overall throughout the quarter, generating returns within its Capital Markets Group led by HKEx-listed Sunwah Kingsway Capital Holdings Limited. With an increased capital base for Fiscal 2015 following a recent rights offering by Sunwah Kingsway, this strengthened Group is well positioned to capitalize on improving worldwide markets and recent initiatives to enhance capital and equity market activity in Asia, including various regulatory changes and the launch of the Shanghai Hong Kong Stock Connect program, which is viewed by experts as a key step in China's integration with the global financial system.
Financial highlights for Q1 Fiscal 2015 include:
- Net loss of $0.8 million (Q1 FY2014: Net gain of $0.1 million).
- Total revenues of $2.6 million (Q1 FY2014: $5.4 million).
- Commission and fee income of $2.9 million (Q1 FY2014: $2.3 million).
- A 114% increase in commission and fee income from corporate finance/capital markets services to $1.5 million (Q1 FY2014: $0.7 million).
- Net loss of $0.7 million on the disposal and mark-to-market losses of financial assets/liabilities (Q1 FY2014: Net gain of $2.8 million).
- General and administrative expenses of $4.2 million (Q1 FY2014: $4.3 million).
"Sunwah International's Capital Markets Group, comprising our corporate finance/equity capital markets teams and our award-winning brokerage division, continued to improve its operational performance throughout the quarter as evidenced by a significant year-over-year increase in advisory services revenues following a concerted effort over the last year to strengthen this business," said Douglas Betts, President and Chief Executive Officer of Sunwah International. "Moving forward, amid these changeable economic times we will continue to steer the Group with caution as we advance with the resources and strategies in place to capture greater transaction volumes through our fee generating businesses, and to further develop our niche foothold in uniting quality international companies with strategic/institutional Asian capital and partners."
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, including infrastructure and real estate, where the Company offers unique and targeted expertise as well as an extensive strategic investor network. Particularly in the nearer term, Sunwah International is also focused on Malaysia, Vietnam and the Philippines, countries that are increasing in strength alongside China's development. Management believes these Southeast Asian nations will follow China's lead and show significant growth and investment opportunities in coming years.
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.
About Sunwah International Limited
Sunwah International Limited (TSX: SWH) is a strategically positioned asset-based financial services provider, linking the global investment community with China's high growth economy. Founded in 1990 and backed by prominent Hong Kong based conglomerate, Sunwah Group, a key element of the Company's growth strategy involves identifying and advancing select international opportunities that are poised to benefit from proliferating consumerism in China and development in key areas of Southeast Asia. Sunwah International is uniquely positioned to capitalize on this demand and the global economic changes stemming from this shift, leveraging a 24-year track record and an extensive relationship/strategic investor network throughout Asia. The Company operates from six offices located in Hong Kong, Beijing, Shanghai, Shenzhen, Macau and Toronto.
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.
This press release announcing the financial results for Sunwah International's period ended September 30, 2014 should be read in conjunction with the audited consolidated financial statements for the quarter ended September 30, 2014 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 2015 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]