TORONTO, Aug. 31, 2016 /CNW/ - Sunwah International Limited (TSX: SWH), an Asian based financial services firm, reports that its major operating subsidiary, Sunwah Kingsway Capital Holdings Limited ("Sunwah Kingsway" or "the Company", together with its subsidiaries collectively referred to as "the Group"), has issued a profit warning dated 31 August 2016. The announcement is made pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571, Laws of Hong Kong) (the "SFO").
Sunwah Kingsway announced that its board of directors (the "Board") informs the shareholders (the "Shareholders") and potential investors of the Company that, based on the annual unaudited management accounts of the Group for the financial year ended 30 June 2016 and the financial information currently available, the Group will record a loss attributable to the Shareholders as compared with a profit attributable to the Shareholders recorded by the Group in the corresponding period last year.
The Board considers that the expected loss was primarily attributable to the following factors: A net loss arising from financial investments of approximately HK$48.0 million for the financial year ended 30 June 2016 (partly due to the volatile financial market in Hong Kong during the financial year) as compared with the net profit arising from financial investments of approximately HK$17 million for the financial year ended 30 June 2015; impairment losses for margin loans and other receivables in the amount of approximately HK$8 million; and a decrease of commission and fee income of approximately HK$7 million.
As the information contained in this announcement is only based on the preliminary review of the management accounts of the Group and the information currently available to the Board, and is not based on any figures or information which has been audited or reviewed by the auditors of the Company and has not been confirmed by the audit committee of the Board, the actual results of the Group may be different from what is disclosed in this announcement. It is expected that the audited annual results of the Group for the year ended 30 June 2016 will be published in September 2016.
Sunwah International Limited is also in process of finalizing its audited consolidated results for its fiscal period. Consequently, the exact impact of Sunwah Kingsway's financial performance on Sunwah International's consolidated financial results for the period has not been fully determined.
Sunwah Kingsway also advised its shareholders and potential investors to exercise caution when dealing in the securities of the Group.
Sunwah Kingsway is a Hong Kong based company principally engaged in the provision of a broad range of financial services, including brokerage, corporate finance, asset management, finance and proprietary trading of financial assets.
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 the expected loss to be reported by the Company's major operating subsidiary based on a preliminary review of management accounts, 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]