Sunwah International Reports Fiscal 2017 Results

TORONTO, Sept. 22, 2017 /CNW/ - Sunwah International Limited, TSX: SWH (the "Company"), an Asian based financial services firm, today announced its financial results for the year ended June 30, 2017. All figures quoted are in U.S. dollars.

FY2017 Financial Highlights:

• Net loss attributable to owners of the Company of $2.6 million (FY2016: Net loss of $5.1 million)
• A substantial increase in total revenues to $17.2 million (FY2016: $8.0 million)
• Net gain of $2.1 million in proprietary trading income (FY2016: Net loss of $6.1 million)
• Commission and fee income of $11 million (FY2016: $11 million)
• Interest and dividend income of $3.6 million (FY2016: $2.6 million)

Despite a significantly improved performance over last year, mainly the result of gains within the Company's investment portfolio, Sunwah International and its subsidiaries (collectively "the Group") recorded a net loss attributable to owners of the Company of $2.6 million in Fiscal 2017, which compares with a loss of $5.1 million in FY2016.  The year's deficit was primarily the result of lackluster capital markets in the Company's mid- market target segment, resulting in a decrease in underwriting and placement fee income and dampened brokerage activity.

The Group is pleased to report a solid performance overall from its proprietary trading business, recording a net gain of $2.1 million on the disposal and mark-to-market differences of financial assets/liabilities against a loss of $6.1 million in 2016.  Commission and fee income remained steady year-over-year at $11 million while interest and dividend income grew substantially to $3.6 million from $2.6 million as a result of increases in loan financing.  Selling and administrative expenses, including commission expenses, rose slightly to $18.1 million from $17.7 million last year due to higher staff costs and an increase in general expenses, which corresponded with the rise in income.

Notwithstanding the year's net loss, Sunwah International made substantial operational gains in Fiscal 2017 in addition to its improved financial performance over last year.  In line with a focus on diversifying and expanding its revenue base, the company concentrated efforts within its corporate finance division, which despite lower underwriting and placement revenues still managed to remain profitable owing to solid income from its sponsorship and advisory businesses.  Throughout the year the Group also expanded its mainstay capital markets efforts (corporate finance, advisory and brokerage) into up-and-coming Asian markets, giving it a first-mover advantage in promising regions such as Vietnam and several key areas of China.  As well, the company made successful strides in diversifying its investment revenue by including a wider array of assets in its mix.

"In Fiscal 2017, we focused on the diversification of our investment portfolio as well as the growth of our fee based businesses in order to smooth out revenues and improve our performance predictability over time," said Michael Choi, President and CEO.  "In addition to concentrating resources within our corporate finance group, our consistently top-performing division, we expanded our geographic coverage with the launch of operations in key regions of Asia.  These measures alongside recovering global financial markets proved worthwhile, resulting in a significant year-over-year improvement in our financial and operational performances."

Sunwah International represents the financial services division of Sunwah Group, a highly reputable Asian based, international conglomerate.

For more information on Sunwah International's annual 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 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.

Forward-Looking Statements

This press release announcing the financial results for Sunwah International's year ended June 30, 2017 shouldbe read in conjunction with the audited consolidated financial statements 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 the Company's 2018 objectives, its 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