TORONTO, Feb. 13, 2018 /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, 2017. All figures quoted are in U.S. dollars.
Q2 FY2018 Financial Highlights:
- Net loss attributable to owners of the Company of $31,000 (Q2 FY2017: Loss of $1.3 million)
- Profit before tax of $0.6 million (Q2 FY2017: Loss of $2.8 million)
- A significant year-over-year increase in total revenues to $4.8 million (Q2 FY2017: $2.3 million)
- Net loss of $0.3 million on the disposal and mark-to-market differences of financial assets/liabilities (Q2 FY2017: Net loss of $1.3 million)
- Strong growth in commission and fee income to $4.3 million (Q2 FY2017: $2.5 million)
- Interest and dividend income of $0.8 million (Q2 FY2017: $0.9 million)
Sunwah International and its subsidiaries (collectively "the Group") recorded a small net loss attributable to owners of the Company of $31,000 in the second quarter of its 2018 financial year, which compares with a loss of $1.3 million in Q2 FY2017. This brings the year-to-date net profit for FY2018 to $0.3 million, up significantly against a loss of $1.3 million in FY2017. A profit before tax of $0.6 million was reported for the period, as compared to a loss of $2.8 million last year.
There was a significant increase in both commission and fee income in this quarter to $4.3 million and to $7.8 million for the six months ended December 31, 2017 as compared to $2.5 million and $4.5 million in last year's corresponding periods. The Group recorded a loss in trading income of $0.3 million for the period as the company executes various strategies designed to smooth out earnings within its proprietary investment portfolio; however, despite this small deficit, trading income was up significantly over last year (Q2 FY2017: loss of $1.3 million) and remained positive for the year-to-date at $0.9 million. Selling and administrative expenses, including commission expenses, rose marginally to $5.2 million from $4.7 million in last year's corresponding quarter in line with the increased advisory fee income.
The Group's significant improvement this quarter over last year is mainly attributed to gains within its Capital Markets Group in keeping with a defined strategy to enhance fee-based revenues. In particular, during the period Sunwah International's corporate finance group was extremely active, successfully closing numerous IPO transactions and completing a variety of advisory service mandates. The Company continues to focus on the strengthening of this mainstay business through its international growth strategy and recent expansion into key up-and-coming Asian regions where it is establishing a first mover advantage. This optimally positions Sunwah International to benefit from recently enacted regulations designed to create new business opportunities and heighten trade and investment flow amongst Asian nations.
"The positive operational and financial results we are now seeing are the result of pointed efforts to produce steadier revenues in order to help us thrive and grow during periods of increased market volatility," said Michael Choi, President and CEO. "For the second half of Fiscal 2018, our strategy will remain the same: To steer the Group with caution as we navigate variable markets, focusing on revenue diversification and the targeting of resources where we excel."
Sunwah International represents the financial services division of Sunwah Group, a highly reputable Asian based, international conglomerate.
For more information on Sunwah International's second 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 December 31, 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, firstname.lastname@example.org.