TORONTO, Feb. 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 December 31, 2016. All figures quoted are in U.S. dollars.
Q2 FY2017 Financial Highlights:
- Net loss attributable to owners of the Company of $1.3 million (Q2 FY2016: Net profit attributable to owners $0.3 million).
- Total revenues of $2.3 million (Q2 FY2016: 5.7 million).
- Net loss of $1.3 million on the disposal and mark-to-market differences of financial assets/liabilities (Q2 FY2016: Net gain $1.6 million).
- Commission and fee income of $2.5 million (Q2 FY2016: $3.4 million).
- Increase in interest and dividend income to $0.9 million (Q2 FY2016: $0.6 million).
- General and administrative expenses of $4.7 million (Q2 FY2016: $4.8 million).
Sunwah International and its subsidiaries (collectively "the Group") reported a net loss attributable to owners of the Company of $1.3 million in the second quarter of Fiscal 2017, which brings the year-to-date net loss to $1.3 million up from a deficit of $2.0 million in the first half of FY2016. The shortfall is mainly due to realized and unrealized mark-to-market losses within the Group's proprietary investment portfolio, stemming mainly from the underperformance of the Hong Kong stock market during the quarter.
Commission and fee income decreased to $2.5 million in Q2 FY2017 from $3.4 million last year due to reduced volumes from its brokerage division in line with deteriorated investor sentiment in Hong Kong during the quarter and a drop in market activity affecting the Group's other fee-based businesses. Interest and dividend income increased to $0.9 million from $0.6 million in Q2 FY2016, primarily attributable to increase in the Group's loans portfolio and investment in debt securities. Selling and administrative expenses decreased slightly year-over-year from $4.8 million to $4.7 million for the current quarter, totaling $8.5 million for the first half of FY2017 (six months of FY2016: $8.6 million).
Amid what Management expects to be a volatile period for global financial markets given, amongst other things, political uncertainty in the U.S. and Europe, Sunwah International persists with initiatives to expand its revenue base in order to strengthen future earnings. To this end, with a stronger balance sheet the Company continues to diversify its investment portfolio in order to reduce the volatility of this income. As well, Sunwah International is taking a variety of measures to further enhance its mainstay corporate finance business, including through geographic expansion into promising regions in line with the Company's international growth strategy.
"In view of what we expect to be a period of increased market volatility, Sunwah International is focused on the growth of our fee based income, particularly through our corporate finance group, which is consistently our top performing division," said Michael Choi, President and CEO. "In addition to targeting resources within this business unit, we are expanding our geographic coverage through the establishment of operations in key up-and-coming regions throughout Asia to access new markets. Alongside regulatory initiatives designed to enhance capital flows from China to Hong Kong, we expect this strategy to bode well for future earnings periods."
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 December 31, 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]