TORONTO, May 12, 2016 /CNW/ - Sunwah International Limited,TSX: SWH (the "Company"), an Asian based financial services firm, today announced its financial results for the quarter ended March 31, 2016. All figures quoted are in U.S. dollars.
Q3 FY2016 Highlights:
- Net loss attributable to owners of the Company of $0.9 million (Q3 FY2015: loss of $1.2 million).
- Total revenues of $2.7 million (Q3 FY2015: $1.4 million).
- Commission and fee income of $3.2 million (Q3 FY2015: $1.8 million).
- Interest and dividend income of $0.6 million (Q3 FY2015: $0.6 million).
- Net loss of $1.0 million for the quarter on the disposal and mark-to-market differences of financial assets/liabilities (Q3 FY2015: loss of $1.0 million). Net loss of $3.7 million for the first nine months of FY2016 (nine months of FY2015: loss of $3.2 million).
- General and administrative expenses of $4.3 million (Q3 FY2015: $3.6 million).
The Group (Sunwah International and its subsidiaries) recorded a net loss of $0.9 million in the third quarter of Fiscal 2016 (FY2015: loss of $1.2 million), bringing the year-to-date net loss to $2.9 million as compared with a shortfall of $3.8 million for the same period in FY2015. The quarter's deficit was mainly attributable to realized and unrealized mark-to-market losses within the Group's proprietary investment portfolio of $1.0 million, which was the result of volatile global equity markets and particularly shaky investor sentiment in Hong Kong where the Company is based and focuses a great deal of its business.
The Company is pleased to report a surge in commission and fee income in the current financial year, totaling $3.2 million for the quarter (Q3 FY2015: $1.8 million) and $8.7 million for first nine months of Fiscal 2016 (nine months of FY2015: $7.4 million). The increase is primarily the result of solid capital market activities within the Group's corporate finance group alongside a push in business development efforts.
Interest and dividend income for the quarter remained unchanged at $0.6 million against last year's comparable period, and the year-to-date figures were up from $1.5 million in FY2015 to $1.8 million in FY2016, owing to gains in the brokerage division's margin loans portfolio. Selling, general and administrative expenses increased to $4.3 million in Q3 FY2016 from $3.6 million in the same quarter last year, totaling $12.9 million for the year-to-date (FY2015: $12.3 million).
As touched upon, the first nine months of Sunwah International's 2016 financial year were plagued by bouts of investor uncertainty. Demonstrated by a 21% decline in the Hang Seng Index between June 2015 and March 2016, Hong Kong (by virtue of its close association with China) suffered from concerns over China's growth and capital outflows as well as falling commodity prices. In the face of this negative sentiment, Sunwah International continued to take measures to stabilize its revenue base through the ongoing diversification of its investment portfolio to include a wider variety of financial instruments, and a focus on amplifying its capital markets activities to increase commission and fee income.
"Despite tumultuous markets, Sunwah International continues to see growth and improvement within our corporate finance and equity capital markets groups following a targeted effort to enhance this area of our business in order to sustain us during times of market uncertainty," said Michael Choi, Chief Executive Officer of Sunwah International. "In the future, in addition to the measures we are taking to move away from a reliance on our proprietary investment returns, we will continue to guide the Group with caution and pursue strategies to capture greater deal flow through our fee generating business."
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.
For more information on Sunwah International's third 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 contains "forward-looking statements" as defined under applicable Canadian securities laws. These statements include, but are not limited to, statements made concerning our 2016 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]