LONDON: Sunwah International Limited, TSX: SWH (the “Company”), an Asian based financial services firm, today announced its financial results for the period ended December 31, 2017. All figures quoted are in U.S. dollars.
Sunwah International and its subsidiaries (collectively “the Group”) recorded a small net loss attributable to owners of the Company of $31,000 in the second quarter of its 2018 financial year, which compares with a loss of $1.3 million in Q2 FY2017. This brings the year-to-date net profit for FY2018 to $0.3 million, up significantly against a loss of $1.3 million in FY2017. A profit before tax of $0.6 million was reported for the period, as compared to a loss of $2.8 million last year.
There was a significant increase in both commission and fee income in this quarter to $4.3 million and to $7.8 million for the six months ended December 31, 2017 as compared to $2.5 million and $4.5 million in last year’s corresponding periods. The Group recorded a loss in trading income of $0.3 million for the period as the company executes various strategies designed to smooth out earnings within its proprietary investment portfolio; however, despite this small deficit, trading income was up significantly over last year (Q2 FY2017: loss of $1.3 million) and remained positive for the year-to-date at $0.9 million. Selling and administrative expenses, including commission expenses, rose marginally to $5.2 million from $4.7 million in last year’s corresponding quarter in line with the increased advisory fee income.
The Group’s significant improvement this quarter over last year is mainly attributed to gains within its Capital Markets Group in keeping with a defined strategy to enhance fee-based revenues. In particular, during the period Sunwah International’s corporate finance group was extremely active, successfully closing numerous IPO transactions and completing a variety of advisory service mandates. The Company continues to focus on the strengthening of this mainstay business through its international growth strategy and recent expansion into key up-and-coming Asian regions where it is establishing a first mover advantage. This optimally positions Sunwah International to benefit from recently enacted regulations designed to create new business opportunities and heighten trade and investment flow amongst Asian nations.
“The positive operational and financial results we are now seeing are the result of pointed efforts to produce steadier revenues in order to help us thrive and grow during periods of increased market volatility,” said Michael Choi, President and CEO. “For the second half of Fiscal 2018, our strategy will remain the same: To steer the Group with caution as we navigate variable markets, focusing on revenue diversification and the targeting of resources where we excel.”
Sunwah International represents the financial services division of Sunwah Group, a highly reputable Asian based, international conglomerate.
