TORONTO, Feb. 14, 2014 /CNW/ - Sunwah International Limited, TSX: SWH (the "Company" or "Sunwah International"), an Asian based financial services firm, today released its second quarter financial results, announcing a very small loss for the three months ended December 31, 2013. All figures quoted are in U.S. dollars.
Recording a profit before tax of $0.4 million, Sunwah International and its subsidiaries (collectively "the Group") reported a net loss of $47,000 for its second quarter, contributing to a slight gain for the year-to-date. The period's small loss, down from income of $0.1 million in the previous quarter and $0.3 million year-over-year, is primarily attributable to lower increases in the value of the Group's proprietary investments of $1.6 million (Q2 FY2013: $3.3 million). Despite lower gains, this portfolio continues to perform well overall following efforts to diversify its returns, recording total income of $4.4 million for the six months to date of the current financial year.
Sunwah International's commission and fee income increased to $3.1 million and $5.4 million for the current quarter and first half of Fiscal 2014 respectively compared to $2.5 million and $4.4 million year-over-year. This increase in the Group's service based revenues is attributable to improving market conditions in Hong Kong and worldwide impacting Sunwah International's brokerage and corporate finance groups. Interest and dividend income remained unchanged year-over-year at $0.4 million, bringing the year-to-date total to $0.7 million. General and administrative expenses, including commission expenses, decreased to $4.2 million from $4.8 million in Q2 FY2013 owing to an ongoing emphasis on managing expenditures.
Sunwah International experienced an upswing in revenues within its corporate finance division during the quarter, the result of a strategy to target resources within this group as well as improving market activity worldwide. In particular, the Company is pleased to report an increase in IPO sponsorship and underwriting and placing transactions amid an improving financing market in Hong Kong. As worldwide capital markets continue to improve, Sunwah International is well positioned to capitalize on its unique expertise in bringing Asian strategic investors together with high quality international investment opportunities following a recent restructuring and business model enhancement.
Financial highlights for Q2 Fiscal 2014 include:
- Loss of $47,000 (Q2 FY2013: Profit of $0.3 million).
- Gain before tax of $0.4 million (Q2 FY2013: $1.1 million).
- 80% increase in corporate finance/capital markets revenues to $1.8 million (Q2 FY2013: $1.0 million).
- 24% increase in commission and fee income to $3.1 million (Q2 FY2013: $2.5 million).
- Net gain of $1.6 million on the disposal of financial assets/liabilities and remeasurement to fair value (Q2 FY2013: $3.3 million).
- A decrease in general and administrative expenses to $4.2 million (Q2 FY2013: $4.8 million).
"Despite this quarter's slight loss, we are not unhappy with our performance as overall we continue to show steady, solid improvements both operationally and financially. In particular, we are pleased with the growth in our fee based revenues and continued positive returns from our proprietary investments, both of which reflect the success of targeted strategies designed to achieve the results we're seeing," said Douglas Betts, President and Chief Executive Officer of Sunwah International. "In terms of the future, we will continue to focus efforts on our capital markets and corporate finance pursuits, including through our newly restructured international advisory services team, to continue to improve our operational and financial success."
Sunwah International's growth strategy focuses on China and parts of Southeast Asia. Specifically, the Company is positioning itself to capitalize on long-term solid growth anticipated in the industries affected most by China's development, particularly infrastructure and natural resources, where Sunwah International offers unique and targeted expertise as well as an extensive strategic investor network. The Company is also focused on the development potential of key Southeast Asian nations, including but not limited to Malaysia, Vietnam and the Philippines, countries that are increasing in strength in addition to being abundant in the resources China needs most.
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), which is filed on SEDAR and is 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 as the need for foreign suppliers of natural resources to support growth in these regions increases. Sunwah International is uniquely positioned to capitalize on this demand and the global economic changes stemming from this shift, leveraging a 22-year track record and significant relationships 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 188. 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 contains "forward-looking statements" as defined under applicable Canadian securities laws. These statements include, but are not limited to, statements made concerning our 2014 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] .