The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group

Sunwah International Reports That its Primary Operating Subsidiary has Issued a Profit Warning

Friday, July 27, 2012

Sunwah International Reports That its Primary Operating Subsidiary has Issued a Profit Warning21:00 EDT Friday, July 27, 2012TORONTO, July 27, 2012 /CNW/ - Sunwah International Limited, TSX: SWH (the "Company"), an Asian based financial services firm, is announcing that the Company's primary operating subsidiary, Sunwah Kingsway Capital Holdings Limited ("SWK") which is based in Hong Kong and listed on The Stock Exchange of Hong Kong, has released a profit warning pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.SWK is 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.  SWK announced that, based on the preliminary review of its management accounts for the year ended 30 June 2012 (the "Period"), it is expected that the SWK will record a significant loss for the Period as compared to the profit for the corresponding period in 2011. The loss is primarily attributed to the current difficult financial and economic conditions, brought about by the European sovereign debt crisis, which has had a negative impact on the capital markets and all aspects of the SWK's business activities.As the SWK is still in the process of finalizing its audited consolidated results for the year ended 30 June 2012, the information contained in this announcement is only based on preliminary assessment by the management of the SWK on the information available to it, which has not been reviewed by either SWK's auditors and/or Audit Committee nor the Company's auditors and/or Audit Committee.Sunwah International Limited is also in process of finalizing its audited consolidated results for the Period.  Consequently, the exact impact of SWK's financial performance on the Company's consolidated financial results for the Period has not been fully determined.  The results announcement of the Company for the Period is expected to be released in September 2012.About Sunwah International Limited Sunwah International Limited, is a strategically positioned asset-based financial services provider, linking the global investment community with China's high growth economy.  Leveraging a 20-year track record and significant relationships throughout Asia, Sunwah International is now positioned into three integrated divisions: Capital Markets Group, consisting of brokerage and financial services, including investment banking; Strategic Investment Group, a merchant bank focused on mining and natural resources; and our Asset Management Group specializing in private equity funds.  The organization's primary subsidiary, Sunwah Kingsway Capital Holdings Limited is based in Hong Kong and listed on The Stock Exchange of Hong Kong.  The Sunwah Kingsway group of companies comprises Sunwah International's primary operating subsidiaries and is licensed to provide a range of financial services.  Sunwah International operates from six offices located in Hong Kong, Beijing, Shanghai, Shenzhen, Macau and Toronto. China is widely recognized as an increasingly important player on the world's financial stage.  As the country continues to grow, its greatest needs will lie in energy and resources.  Following a recent restructuring, the Company is positioned as a middle tier provider of financial services in these sectors and an opportunistic investor in these and related sectors.  Sunwah International's strategy is to use investment activities strategically to generate advisory services revenue while creating value for its shareholders through asset accumulation. Founded in 1990, the Company is listed on the main board of the Toronto Stock Exchange under the symbol SWH. Forward-Looking Statements  This press release contains forward-looking statements that are based on the beliefs of Management and reflect the Group's current expectations.  In certain cases, forward-looking information can be identified by the use of words such as "estimate", "project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may", "should", "will", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". 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.SOURCE: Sunwah International LimitedFor further information: Gary Quedado, Sunwah International Group, (416) 861-3099 Ext. 0238, gquedado@sunwahinternational.com