Q2 FY2020 Highlights:
- Total revenues, mainly from the Company's new Restaurant Operations, of
$0.89 million for the quarter, totaling$1.73 million for the first half of FY2020 - A loss attributable to shareholders of the Company from continuing operations amounting to
$0.73 million , a notable improvement over last year's loss of$1.54 million in Q2 FY2019. The year-to-date loss for FY2020 was$1.42 million against a loss of$2.03 million for the six months of last year. - A loss before tax from continuing operations of
$0.81 million for the quarter and$1.59 million for the year-to-date (Q2 FY2019: loss of$1.54 million ; a loss of$2.03 million for the six months of FY2019) - A share of losses of
$0.02 million for the quarter and$0.37 million for the year-to-date, which represents results from the Company's primary investment in financial services - A loss on partial disposal of interest in
Sunwah Kingsway Capital Limited of$0.47 million for the quarter - Cost of sales for
Sunwah International's new Restaurant Operations of$0.26 million in Q2 FY2020 and$0.49 million for the first half of FY2020 - An increase in selling, general and administrative expenses to
$0.96 million for the quarter and$2.00 million for the six-month period up from$0.44 million in Q2 FY2019 and$0.63 million for the first half of FY2019. The increase was the result of expenses related to its new restaurant business.
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Financial Overview:
In accordance with the Company's refocused operations,
Financial Services Division – This division comprises the results from the Company's remaining (26.47%) interest in Sunwah Kingsway Capital Holdings Limited, its former principal subsidiary and now main investment interest (now accounted for as an associate under the equity method of accounting).
Q2 FY2020 highlights:- A share of losses of
$0.02 million for the quarter and$0.37 million for the year-to-date, which stands for a share of results of 26.47% (27.90% prior to theDecember 2019 disposal of shares). This corresponds with a share of losses of$1.05 million and$1.42 million in the second quarter and six months of FY2019 respectively (representing a 28.36% equity interest in SWK at the time). - SWK's second quarter and year-to-date losses in FY2020 are mainly the result of a decrease in commission and fee income amid dampened financial markets in
Hong Kong andAsia and an increase in impairment loss from financial assets. - Restaurant Operations – This division encompasses
Sunwah International's activities in a restaurant in accordance with its new business focus following its acquisition ofHFL Limited , an Asian food and beverage company operating a premium Chinese seafood restaurant in Hong Kong. Q2 FY2020 highlights: - A loss of
$0.16 million for the quarter and$0.35 million for the first half of Fiscal 2020 - Revenues for the quarter of
$0.87 million and$1.70 million for the first half of Fiscal 2020 - Cost of sales of
$0.26 million and$0.49 million for the quarter and year-to-date respectively, representing the cost of inventories sold - General, selling and administration expenses of
$0.57 million for the quarter and$1.15 million for the six months of Fiscal 2020, which includes staff costs of approximately$0.40 million for the quarter and$0.80 million for the year-to-date (wages and allowances, pension costs, employee benefits etc.) - Depreciation and amortization amounted to
$0.20 million for the quarter and$0.39 million for the first half of Fiscal 2020 while property related management expenses total$41,000 and$82,000 for the quarter and the first half of Fiscal 2020 respectively - Strategic Investments and other activities – This division includes strategic investments, proprietary investments and other activities of the Group. Q2 FY2020 highlights:
- A substantially improved year-over-year performance with a net loss of
$0.16 million in Q2 FY2020 (Q2 FY2019: loss of$0.50 million ) and$0.40 million for the half-year (six months of FY2019: loss of$0.69 million ) - A fair value gain on the financial assets at fair value through profit or loss of
$40,000 for the quarter - Selling, general and administrative expenses of
$0.20 million in Q2 and$0.46 million for the year-to-date against$0.20 million and$0.40 million for the corresponding periods of FY2019 - Discontinued Operations of Technology Products and Services – This division includes the operations of
Pop Electronic Products Limited andDacEasy (H.K.) Limited , two technology investments the Company recently divested itself of in Q4 FY2019. This segment is included in the Company's results for year-over-year comparison purposes. - A small loss of
$19,000 was recorded in last year's second quarter (Q2 FY2020: N/A), resulting in a small loss of$6,000 for the first half of Fiscal 2019 (six months of FY2020: N/A).
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This press release contains certain statements that reflect management's expectations and objectives for the Company's future performance, opportunities and growth, which statements constitute "forward‑looking information" and "forward-looking statements" (collectively "forward-looking information") under applicable securities laws. Such statements, other than statements of historical fact, are predictive in nature or depend on future events or conditions. Forward-looking information involves estimates, assumptions, judgments and uncertainties. These statements may be identified by the use of forward‑looking terminology such as "may", "will", "should", "anticipate", "expect", "believe", "predict", "estimate", "continue", "intend", "plan" and variations of these words or other similar expressions. Specifically, this press release includes forward-looking information in respect of
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