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
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:
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
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
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
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
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