TORONTO, May 12, 2015 /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, 2015. All figures quoted are in U.S. dollars.
Sunwah International and its subsidiaries (the Group) reported a net loss attributable to owners of the Company of $1.2 million for its third quarter as compared to a loss of $0.3 million in the corresponding period of FY2014, bringing the year-to-date deficit to $3.8 million. (FY2014: $0.5 million). The quarter's shortfall, which compares with a gain of $1.1 million last year, is primarily attributable to unrealized mark-to-market losses in the Group's proprietary investments of $1.0 million due largely to the underperformance of several small cap equities in Sunwah International's portfolio despite improving markets. The Company is currently taking measures to increase the ratio of its listed debt securities in order to diversify investment risk and help even out returns in the future.
Commission and fee income decreased to $1.8 million for the current quarter and $7.4 million for the nine months to date of Fiscal 2015 compared to $2.5 million and $7.9 million last year. The decline corresponds with a slight drop in advisory income within Sunwah International's corporate finance group as well as marginally reduced revenue from high net worth clients of the Company's brokerage division.
Sunwah International's equity capital markets (ECM) activities remain vibrant despite lowered advisory services income during the period. The division fulfilled a number of underwriting and placing transactions in Q3 and is working toward the completion of several IPOs before fiscal year end, supported by improved investor sentiment and the implementation of substantial regulatory changes designed to bolster Asian financial markets long-term.
Interest and dividend income increased to $0.6 million for the third quarter and $1.5 million for the first nine months of Fiscal 2015, which compares with $0.5 million and $1.2 million respectively in FY2014, owing to gains in the brokerage division's margin loans portfolio. General and administrative expenses decreased to $3.6 million in Q3 FY2015 from $4.1 million last year, totaling $12.3 million for the year-to-date (FY2014: $12.6 million) due to lowered commission expenses and a continued emphasis on managing costs.
Financial highlights for Q3 Fiscal 2015 include:
- Net loss attributable to owners of the Company of $1.2 million (Q3 FY2014: Net loss of $0.3 million).
- Total revenues of $1.4 million (Q3 FY2014: $4.2 million).
- Commission and fee income of $1.8 million (Q3 FY2014: $2.5 million).
- Increased interest and dividend income to $0.6 million (Q3 FY2014: $0.5 million).
- Net loss of $1.0 million on the disposal and mark-to-market losses of financial assets/liabilities (Q3 FY2014: Net gain of $1.1 million).
- Decreased general and administrative expenses of $3.6 million (Q3 FY2014: $4.1 million).
"Sunwah International continues to see solid improvements within our corporate finance and equity capital markets groups in line with efforts to strengthen our fee generating prospects and diversify our income base," said Douglas Betts, President and Chief Executive Officer of Sunwah International. "Also with the goal of stabilizing future earnings and creating shareholder value, we are implementing measures to move away from a reliance on our proprietary investment returns while taking steps to address the Company's undervalued share price relative to its net asset value."
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.
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 March 31, 2015 should be read in conjunction with the audited consolidated financial statements for the quarter ended March 31, 2015 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]